Final Resettlement Plan PRC: Shaanxi Mountain Road Safety

Shaanxi Mountain Road Safety Demonstration Project (RRP PRC 46042)

Final Resettlement Plan

February 2016

PRC: Shaanxi Mountain Road Safety Demonstration Project

(Component: Hanbin Highway Road)

Prepared by Hanbin District Government.

CURRENCY EQUIVALENTS (as of 10 July 2014) Currency unit – Yuan (CNY) CNY1.00 = $0.16243 $1.00 = CNY6.1565

ABBREVIATIONS AAOV – Average Annual Output Value ADB – Asian Development Bank AHs – Affected Households APs – Affected Persons AV – Administrative Village CRO – County Resettlement Office DI – Design Institute DMS – Detailed Measurement Survey DRO – District Resettlement Office FS – Feasibility Study HD – House Demolition HDG – Hanbin District Government HPMO – Hanbin Project Management Office LA – Land Acquisition LAB – Land and Resources Bureau LAR – Land Acquisition and Resettlement LEF – Land-Expropriated Farmer L&RO – Land & Resources Office MOU – Memorandum of Understanding M&E – Monitoring and Evaluation NDRC – National Development and Reform Commission PADO – Poverty Alleviation and Development office PAH – Project Affected Household PAP – Project Affected Person PDRC – Provincial Development and Reform Commission PPTA – Project Preparatory Technical Assistance PRA – Participatory Rural Appraisal PRO – Project Resettlement Office RIB – Resettlement Information Booklet RP – Resettlement Plan SES – Socioeconomic Survey SPS – Safeguards Policy Statement of ADB SPTD – Shaanxi Provincial Transport Department TRO – Township Resettlement Office

WEIGHTS AND MEASURES km – kilometer m2 – square meter mu – 666.7 m2

NOTES In this report, "$" refers to US dollars.

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

ADB Loan Project (TA-8440)

Shaanxi Mountain Road Safety Demonstration Project (Component: Hanbin Highway Road)

Final Resettlement Plan

Hanbin District People’s Government February 2016

安康市汉滨区人民政府

COMMITⅢENT LETTER

Hanbi n Dist ri ct PeOp1e’ s Government app1i ed f or t he 1oan t o Asi an Deve1opment Bank f or t he Hanbi n Dist ri ct component of shaanxi Mount ai n Road saf et y Demonst rat i on Proj ect 。 Theref ore, t he i mp1ement at i on of t he proj ect must sat i sf y t he soci al saf eguard po1i Gy of ADB。 Thi s p1an represent s a key requi rement of ADB, and becomes t he basi s f or t h ∶mp1ement at i on of 1and acqui si t i on and demo as re1ocat i on and reset t 1ement 。 The Res eres t o re1evant 1aψ 恋and regul at i ons of t publ i C Of Chi na, shaanxi Provi nce, Ankan anbi n Dist ri ct and ADB’ s saf eguards Po1i cy st at ement ( SPs 2009) on i nv01unt ary reset t l ement 。 I n order t o bet t er , ac0omp1i sh t he re1ocat i on and reset t 1ement work, t he pl an al so i nc1udes some addi t i onal act i ons and i mp1oment at i on and moni t ori ng arrangement 。 At t 0e preparat i on st age, t h0 Hanbi nⅡ Dist ri Gt Government prepared a RP based on t he f easi bi 1i t y st udy report , whi ch has been approved by ADB。 Accordi ng t o i t s agreement wit h t he ADB, t oe Hanbi n Dist ri ct Government has upd。 t 0♂ d t hi s RP based oh t he DMs。 Hanbi n Dist ri ct Government hereby acknOw1edges t he t 。乩e“ ∷。f 1血 RP mo 饨 ⅡI ?0|. 0?0Ⅱ Ⅱ∴|0亠 : 0灬 j t i 。 '“ d占m。 1iti° h; r占 i 。。 Ⅰ∶oo品pensat i on and reset t l ement budget of t he subproj ect Wi11 f o11ow t hi s p1an。 The Hanbi n Dist ri ct Government has di sGussed t he t hi s f i nal RP wit h t he agenci es concerned ( eg。 1and resource bureau and af f eGted t ownshi p government s) t hrough t he Hanbi n PMO and obt ai ned t hei r consensus。 The reset t 1ement GOmpensat i on and i mp1ement at i on of t he subproj eCt wi11 be compl i ed wit h t hi s RP。

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GLOSSARY

Affected person (or – Those who are physically displaced (relocation, loss household) of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas Compensation – Money or payment in kind to which the people affected are entitled in order to replace the lost asset, resource or income

Entitlement – Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base

Income restoration – Reestablishing income sources and livelihoods of people affected Resettlement – Rebuilding housing, assets, including productive land, and public infrastructure in another location

Resettlement Impact – Loss of physical and non-physical assets, including homes, communities, productive land, income-earning assets and sources, subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms

Resettlement Plan – A time-bound action plan with budget setting out resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring and evaluation

Vulnerable Group – Distinct groups of people who might suffer disproportionately from resettlement effects, as specified in this plan

Cut-off date – The effective date for resettlement eligibility based on the detailed measurement survey (DMS) based census of APs and preparation of a full inventory of losses.

Note on the RP Update of Hanbin Component

As required by ADB, it is necessary to update the RP based on the completed DMS, and the updated (final) RP will serve as the basis for resettlement implementation.

According the detailed design, the Hanbin PMO and land resource bureau conducted a DMS for Anxun highway and Yandong road during October~ November 2015. On this basis, the RP is updated. This update mainly covers resettlement impacts, compensation and resettlement policies, resettlement programs, organizational structure, resettlement budget, resettlement implementation schedule, etc. Summary of this Update Content Original RP Final RP Remarks acquisition of 7.73 mu of collective land decreased, but 463.96 mu land will be acquired 456.27 mu land will be acquired 196HHs with 440 LA impact with 658 HHs and 2485 persons with 854 HHs and 2925 persons persons affected affected in 11 villages of 4 towns affected in 14 villages of 4 towns increased due to more accurate on-site survey 1643m2 house 11887m2 will be demolished with 10244 m2 will be demolished with demolition with 3HHs HD impact 59 HHs and 251 persons 56 HHs and 238 persons affected. and 13 persons affected. decreased Compensation for the acquired rural collective land includes land compensation fees and resettlement subsidies of CNY 60,000 per mu for paddy field, CNY 54,000 per mu for plain dryland, CNY 45,000 per Policies and mu for sloping dryland, CNY 48,600 per mu for housing plot, CNY No change rates for LA 22,500 per mu for forest land and CNY 18,000 per mu for other land. The compensation for young crops of paddy land and dryland will be CNY 1,200 per mu. The compensation standard for house demolition is set according to replacement cost of Hanbin District, CNY 1,000 per m2 for brick and concrete housing, CNY 520 per m2 for brick and wood housing, and Policies and CNY 400 per m2 for earth wood structures. The AHs will receive a No change rates for HD moving allowance of CNY 1,000 per household, and transition subsidies of CNY 250-400 per month if needed in case the new houses are not fully ready before moving. Livelihood The LA impact is limited, and cash compensation will be adopted No change restoration Rural households are subject to three resettlement modes, which are: HD (i) Reconstruction of new housing by AHs themselves, (ii) Participate in resettlement No change New Rural Village Development Plan and (iii) Cash Compensation with programs no need of new house construction Budget reduced by CNY 13.45 million, Resettlement CNY 357.71 million CNY 344.26 million mainly due to cost reduction in LA and HD Implementation start from July 2015 start from March 2016 schedule

Contents 1 PROJECT OVERVIEW AND BACKGROUND ...... 1

1.1 PROJECT BACKGROUND ...... 1 1.2 PREPARATION OF RP ...... 1 1.3 SCOPE OF THE HANBIN HIGHWAY ROAD SUBPROJECT ...... 2 1.4 MEASURES EMPLOYED TO AVOID OR FURTHEST REDUCE LAND ACQUISITION AND DEMOLITION ...... 4 2 PROJECT IMPACT ...... 7

2.1 SURVEY METHOD AND PROCESS ...... 7 2.1.1 Project survey of the early stage ...... 7 2.1.2 Data source and survey method ...... 7 2.2 OVERALL IMPACT OF THE SUB-PROJECT ROAD COMPONENTS ...... 8 2.3 IMPACT OF PERMANENT COLLECTIVE LAND ACQUISITION ...... 8 2.4 TEMPORARY LAND OCCUPATION ...... 11 2.5 ANALYSIS OF IMPACT OF RESIDENTIAL HOUSE DEMOLITION ...... 11 2.6 IMPACT OF DEMOLISHED BUILDINGS OF ENTERPRISES AND PUBLIC INSTITUTIONS ...... 12 2.7 AFFECTED INFRASTRUCTURE AND GROUND ANCILLARY FACILITIES ...... 12 2.8 AFFECTED POPULATION ...... 13 2.8.1 Overall affected population ...... 13 2.8.2 Affected vulnerable groups ...... 13 2.8.3 Project impact on women ...... 14 2.8.4 Affected minority population ...... 15 3 SOCIAL AND ECONOMIC PROFILE OF THE PROJECT AREA ...... 16

3.1 SOCIOECONOMIC PROFILE OF PROJECT AREA ...... 16 3.1.1 Socioeconomic Profile of Ankang City ...... 16 3.1.2 Socioeconomic profile of Project District and County ...... 17 3.1.3 Socioeconomic profile of affected townships ...... 18 3.1.4 Socioeconomic profile of affected villages ...... 19 3.2 SOCIOECONOMIC PROFILE OF AFFECTED HOUSEHOLDS ...... 19 3.2.1 Sample survey ...... 19 3.2.2 Nationality and gender ...... 20 3.2.3 Age structure ...... 20 3.2.4 Education background ...... 20 3.2.5 Housing size ...... 21 3.2.6 Cultivated land resource ...... 21 3.2.7 Household income and expenditure ...... 21 3.2.8 Willingness of people to relocate ...... 23 3.3 GENERAL SITUATION OF THE AFFECTED ENTERPRISES AND PUBLIC INSTITUTIONS ...... 25 3.4 WOMEN’S DEVELOPMENT IN PROJECT AREA ...... 25 3.4.1 Rural women profile in project areas ...... 25 3.4.2 Women’s roles in household livelihoods ...... 26 3.4.3 Decision-making at household and community levels ...... 27 3.4.4 Women’s transport needs ...... 27 3.4.5 Project Impacts on Women ...... 27 3.4.6 Measures in RP in facilitating women’s development ...... 28 4 LEGAL FRAMEWORK AND POLICIES ...... 29

4.1 OVERVIEW OF RELEVANT LAWS, REGULATIONS AND POLICIES ...... 29 4.2 THE PRC’S LAWS AND REGULATIONS ON LAND ACQUISITION AND RELOCATION ...... 29 4.3 RELEVANT POLICIES OF SHAANXI PROVINCE AND HANBIN/XUNYANG DISTRICT/COUNTY ...... 31

4.4 ADB’S POLICY REQUIREMENTS ON INVOLUNTARY RESETTLEMENT ...... 31 4.5 DIFFERENCES OF ADB’S AND LOCAL POLICIES ...... 33 4.5.1 Compensation and resettlement for house ...... 33 4.5.2 Compensation and resettlement for land ...... 33 4.5.3 Compensation and resettlement for vulnerable groups ...... 33 4.5.4 Consultation and disclosure ...... 34 4.5.5 Lack of legal title ...... 34 4.5.6 Resettlement monitoring, evaluation and reporting ...... 34 4.6 ADB POLICY ON GENDER AND DEVELOPMENT...... 34 5 COMPENSATION PRINCIPLE AND ENTITLEMENT ...... 36

5.1 RESETTLEMENT PRINCIPLES ...... 36 5.2 CUT-OFF DATE OF COMPENSATION ...... 36 5.3 COMPENSATION RATE FOR PERMANENT LAND ACQUISITION ...... 37 5.4 COMPENSATION RATE FOR TEMPORARY LAND OCCUPATION ...... 37 5.5 COMPENSATION RATE FOR HOUSE DEMOLITION ...... 38 5.6 COMPENSATION FOR GROUND ATTACHMENT AND INFRASTRUCTURE ...... 40 5.7 COMPENSATION FOR YOUNG CROPS ...... 40 5.8 STANDARD OF OTHER COSTS ...... 41 5.9 ENTITLEMENT MATRIX ...... 41 6 RESETTLEMENT AND INCOME RESTORATION PLAN ...... 45

6.1 IMPACT OF PERMANENT LAND ACQUISITION AND INCOME RESTORATION MEASURES ...... 45 6.1.1 Impact of permanent land acquisition ...... 45 6.1.2 Income restoration plan and assistance measures ...... 47 6.2 DEMOLITION AND RESETTLEMENT PLAN FOR RESIDENCE ...... 50 6.2.1 Relocation options ...... 51 6.2.2 Concentrated resettlement site ...... 53 6.2.3 Other subsidy policy ...... 53 6.3 LIVELIHOOD RESTORATION FOR VULNERABLE GROUPS ...... 53 6.4 WOMEN’S DEVELOPMENT MEASURES ...... 54 6.5 RECOVERY PLAN OF GROUND ATTACHMENTS AND SPECIAL FACILITIES ...... 55 7 INSTITUTIONAL ARRANGEMENTS ...... 56

7.1 INSTITUTIONAL ARRANGEMENTS ...... 56 7.2 ORGANIZATIONAL RESPONSIBILITY ...... 57 7.3 STAFFING AND EQUIPMENT ...... 60 7.3.1 Staffing ...... 60 7.3.2 Equipment ...... 60 7.3.3 Organizational Training Program ...... 60 8 RESETTLEMENT BUDGET...... 61

8.1 RESETTLEMENT BUDGET ...... 61 8.2 RESETTLEMENT INVESTMENT PLAN AND SOURCE OF FUND ...... 64 8.3 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS ...... 64 8.4 APPROVAL OF BUDGET INCREASE ...... 65 9 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 66

9.1 PUBLIC PARTICIPATION...... 66 9.1.1 Stakeholder identification and information disclosure ...... 66 9.1.2 Participation during project preparation ...... 66 9.1.3 Participation plan during implementation ...... 71 9.1.4 Adaptation of RP based on public opinions ...... 71 9.2 GRIEVANCES AND REDRESS ...... 72

9.2.1 Grievances ...... 72 9.2.2 Grievance Procedures ...... 72 9.2.3 Grievance Redress Principle ...... 73 9.2.4 Contents and Form of Reply to Complaints ...... 73 9.2.5 Report of Grievance ...... 74 10 IMPLEMENTATION PLAN OF RELOCATION AND RESETTLEMENT ...... 75

10.1 PRINCIPLE FOR IMPLEMENTATION OF RELOCATION AND RESETTLEMENT ...... 75 10.2 RP IMPLEMENTATION SCHEDULE ...... 75 11 MONITORING, EVALUATION AND REPORT ...... 78

11.1 INTERNAL MONITORING ...... 78 11.2 EXTERNAL MONITORING ...... 78 11.3 SCOPE AND METHODOLOGY OF EXTERNAL MONITORING ...... 78 11.4 POST EVALUATION ...... 80 APPENDIX 1: RELEVANT LAWS AND POLICIES OF THE PRC ...... 81 APPENDIX 2: RESETTLEMENT INFORMATION BOOKLET ...... 85 APPENDIX 3: TOR FOR EXTERNAL MONITORING AND EVALUATION TERMS OF REFERENCE: EXTERNAL MONITORING – RESETTLEMENT PLAN ...... 96

EXECUTIVE SUMMARY

E1. DESCRIPTION OF THE PROJECT

1. Hanbin District Highway Road component includes two highways – (i) rehabilitation to the G316 (national road) between the Hanbin District of Ankang City and Lvhe Town of Xunyang County section (hereinafter short for Anxun Highway) in total of 34.4 km, and (ii) rehabilitation of Yanba and Dongqiao Highway (rural road component, road #5) township road, hereinafter short for Yandong Highway in total of 10.7 km.

E2. LAND ACQUISITION AND RESETTLEMENT SCOPE

2. The land acquisition and resettlement (LAR) of Hanbin component will affect 14 administrative villages, and 4 town/townships, including a total of 854 households with 2,925 persons affected, including 798 households with 2,678 persons affected by land acquisition only and 56 households with 238 persons by both land acquisition and house demolition.

3. A total of 456.19 mu of rural collective land areas will be permanently acquired, including 132.54 mu of cultivated land (29.1%), 20.8mu of housing plots (4.6%), 295.46mu of forest land (64.8%), and 7.39 mu of barren land (1.60%). 854 households with 2,925 person will be affected by land acquisition.

4. In addition, a total of 46.61 mu land will occupied temporarily by Yandong highway.

5. The project will involve 10,244 m2 of building demolition, including 7,521.97m2 brick concrete building, 810.46 m2 of brick-wood buildings, 1,569.8 m2 earth wood housing, and 341.77 m2 simple house structures. 56 households with 238 persons will be affected by house demolition. In addition, scattered trees, poles, wires, tombs, enclosures, water wells and other ground ancillary facilities will be affected.

6. No enterprises and public institutions or shops are involved in acquisition and demolition. In the implementation area of the project, no ethnic minorities will be affected.

E3. RESETTLEMENT PRINCIPLES AND ENTITLEMENTS

7. The Resettlement Plan (RP) is prepared in accordance with the related policies of PRC, Shaanxi Province, Ankang City and Hanbin District relating to land acquisition and house demolition, as well as ADB’s Safeguards Policy Statement (SPS 2009), Safeguards Requirement 2, Involuntary Resettlement. The objective of the RP is to ensure LAR impacts are avoided and/or minimized; affected persons (APs) are compensated for their losses on the basis of replacement cost, that livelihoods and standards of living of displaced persons are improved, or at least restored to pre-project (physical and/or economic) levels and that the standards of living of the displaced poor and other vulnerable groups are improved, not merely restored, by providing adequate housing and steady income and livelihood sources. Also, APs are informed and consulted from the early stage of the project and their grievances are addressed in a timely manner.

E4. COMPENSATION STANDARDS

8. Based on consultation with the local governments and affected persons (APs) and general practices in the project area, the Hanbin District Government (HDG) has adopted a set of resettlement principles, and an entitlement matrix has been prepared for the Project. The compensation standard for

land acquisition is in accordance with national laws and regulations, as well as the resettlement policy of Shaanxi Province, Ankang City, Hanbin District, and fulfills the ‘replacement cost’ requirements of the ADB SPS 2009.

9. Compensation for the acquired rural collective land includes land compensation fees and resettlement subsidies of CNY 60,000 per mu for paddy field, CNY 54,000 per mu for plain dryland, CNY 45,000 per mu for sloping dryland, CNY 48,600 per mu for housing plot, CNY 22,500 per mu for forest land and CNY 18,000 per mu for other land. The compensation for young crops of paddy land and dryland will be CNY 1,200 per mu.

10. The compensation standard for house demolition is set according to replacement cost of Hanbin District, CNY 1,000 per m2 for brick and concrete housing, CNY 520 per m2 for brick and wood housing, and CNY 400 per m2 for earth wood structures. The AHs will receive a moving allowance of CNY 1,000 per household, and transition subsidies of CNY 250-400 per month if needed in case the new houses are not fully ready before moving. The compensation standards for other affected assets including trees, fences, walls and other surface attachments, and water and power facilities are set according to replacement cost. Awards for advance moving have been set at: 1) CNY 4,000 for moving within 20 days of agreement signing, 2) CNY 2,000 for moving within 30 days of agreement signing, and 3) CNY 1,000 for moving within 40 days of agreement signing.

11. Compensation for land acquisition, residential housing, and other attachments will be paid to the affected villages and APs respectively.

E5. RESETTLEMENT AND LIVELIHOOD REHABILITATION

12. Among the 854 households affected by LA, 661 AHs (77.4%) will lose 0-5% of their cultivated land, 141 households (16.5%) will lose 5-8%, 52 households (6.1%) will lose 8-10%. No household will lose more than 10% of their land. The household income sources in the project area are mainly from non-farming amounting to 75.9%, with farming contributing the remaining 24.1%. The land acquisition impacts on household’s net income are therefore limited (about 0.08-3.11% based on the land loss rate and income structure) and will have minimal impact on the livelihood standards of the affected households. To minimize the resettlement impacts to APs and restore their living standards, measures have been developed and included in this RP. The comprehensive compensation package that will be used by the affected persons, which includes farming and non-farming measures. Farming measures include expanding cash crop plantation, improving existing low yield cash crops and land rental to expand agricultural plantation, will help offset the losses incurred due to the land acquisition impacts. Non-farming measures include arranged jobs, waged non-farming jobs, off-farming business. In addition, special measures for vulnerable groups have been put in place.

13. For physical displaced households (i.e., house demolition), various options are available for AH to choose according to their own desire in order to restore their living condition. In all cases, cash compensation for housing plots, house structures including other structures and attachments based on replacement costs as well as transfer allowances will be provided. The major options include:

(i) Reconstruction of new housing by AHs themselves: For those who choose to construct new houses, they need buy a housing plot themselves using the paid compensation. The housing plot compensation standard has been discussed several times with the AHs. It is agreed that the current compensation standard is in general enough to purchase similar condition housing plot in the same area. Should the AH purchase a housing plot cheaper than the compensation standard, the saving belongs to the AH. If the household choose reconstruct their new house in a better place (e.g. closer to town center area or a

wider space) voluntarily, they need pay the additional costs by themselves. If the households have difficulties finding a housing plot, the town government has committed to provide a similar one acceptable to the AH with a price not exceeding the compensation standard, regardless of the cost. There are no additional costs to the AH. (ii) Participate in New Rural Village Development Plan: For those who are willing to purchase new house in residential area under new rural village development, cash compensation of housing plot and replacement price will be paid directly to AHs. In addition, discount has been negotiated and committed. Both location and quality of the house is better than the proposed demolition house in general. The price committed is only the construction cost, which is higher than the compensation standard but lower than the commercial residential house. This arrangement is very favorable to the AH and acceptable to them according to the field discussion. (iii) Cash Compensation with no need of new house construction. For those households with alternative houses in the city or nearby places or that plan to buy commercial residential housing in town and to give up reconstructing new houses, an application in writing is required. In addition to cash compensation for housing plots and replacement price of house structures including annex buildings paid in cash to AH directly, additional resettlement subsidy of CNY 10,000 per person and CNY 10,000 cash reward per person will be granted once the AH’s application of giving up new house construction is approved.

E6. PUBLIC PARTICIPATION AND GRIEVANCE

14. From January 2013 to August 2014, over 18 consultation activities were carried out with the APs (including 60% women), village communities (VCs), and other project stakeholders.

15. From October to November 2015, Hanbin PMO organized the resettlement detailed measurement surveys according to the detailed design, which is called construction drawing design in China. During the survey, three consultation workshops have been carried out. The issues and concerns of APs have been integrated into this updated RPs.

16. Issues raised include village road extension, compensation options, replacement plans, compensation delivery, willingness of livelihood restoration options, resettlement site selection procedures, etc. Their concerns and comments have been integrated into the RP. Further consultations will be held during the implementation of the RP. A grievance redress procedure has been established for the APs to manage LAR and other project related issues. Both oral and written grievances received and their redress actions will be recorded and will be made available to the external monitor and ADB missions on request. The APs can also put forward grievances to the external monitoring and evaluation agency.

17. During the implementation of RP, Hanbin PMO will coordinate related agencies to conduct further consultations and public participations.

E7. INSTITUTIONAL ARRANGEMENT

18. FPPO in Shaanxi Provincial Transport Department (SPTD) is the coordinating organization in responsible for the overall deployment and supervision of the project and solving problems and major issues. The PMO of SPTD will also take the primary responsibility for the resettlement consultation, implementation, and timely delivery of entitlements, and report the implementation progress of the RP to ADB.

iii

19. Hanbin district transport bureau (HDTB) on behalf of Hanbin District Government (HDG) is the implementing agency (IA) of the Hanbin component. PMO a working body set up in HDTB is mainly responsible for organizing the resettlement work of the project, and making decisions and consultation on major issues arising from construction and resettlement. Hanbin Project Resettlement Office under Hanbin PMO is responsible for the detailed work of preparation and implementation of the RP. Each town government and the affected village and community committees are responsible for working with Hanbin Project Resettlement Office in the implementation of this RP. 1-2 leaders in each town government and each village committee respectively will be nominated to lead the RP preparation and implementation.

20. To ensure smooth implementation, the staff in charge of RP will undertake training on resettlement implementation.

E8. RESETTLEMENT IMPLEMENTATION SCHEDULE

21. The resettlement implementation schedule has been prepared based on the preparation and construction timetable. It is scheduled that land acquisition and housing demolition will commence in March 2016 and most of the resettlement activities will be completed by December 2016. However, rehabilitation of housing and livelihoods may take longer to complete. The PMO of SPTD has agreed to a set of supervision milestones with ADB to ensure timely and effective implementation of the resettlement activities.

E9. RESETTLEMENT COST

22. The resettlement costs of the Project are CNY 34.426 million budgeted in the project, which is 11% of the cost of the component, including permanent LA costs of CNY 15.214 million, compensation fees for house demolition CNY 9.02 million and CNY 0.765 million of compensation fees for infrastructure and ground attachments, special facilities of CNY 0.2 million, special supporting funds for vulnerable groups CNY 0.252 million, training CNY 0.126 million, RP preparation and M&E of CNY 0.378 million, taxes CNY 5.28million and contingencies of CNY 3.13 million.

E10. MONITORING AND EVALUATION

23. Details for both the internal and external monitoring and evaluation (M&E) are included in the RP. The Provincial level PMO will submit an internal progress report quarterly to ADB. Furthermore, the project sponsor will engage an independent external resettlement monitoring institute or firm to undertake external monitoring of the RP implementation. A baseline study will be conducted before the LAR begins and the first monitoring report will be submitted in 2016. After that and until project completion, semi-annual monitoring reports will be prepared and submitted for ADB’s review. After completion of the LAR, annual evaluation reports will be submitted to ADB for 2 years or longer if there are any remaining issues.

E11. UPDATED RESETTLEMENT PLAN

24. The resettlement plan, subproject in Hanbin District, includes two roads - (i) Rehabilitation to the G316 (national road) between the Hanbin District of Ankang City and Lvhe Town of Xunyang County section (hereinafter short for Anxun Highway) in total of 34.4 km, and (ii) rehabilitation of Yanba and Dongqiao Highway (rural road component, road #5) township road, hereinafter short for Yandong Road in total of 10.7 km.

25. The update of resettlement plan, subproject in Hanbin District, is based on the detailed design and resettlement detailed measurement survey conducted from October to November 2015.

1 Project Overview and Background

1.1 Project Background

1. Shaanxi Province is one of the least developed provinces with per capita GDP, per capita urban income and per capita rural income at about 100%, 84% and 73% of the national averages in 2012, ranking in 14th, 18th and 26th respectively among the 31 administrative provinces and regions in PRC. Fifty of Shaanxi’s 107 counties have been officially designated national poverty counties.

2. The project is located in Ankang and Shangluo, two prefecture-level cities of southern Qinba Mountain of Shaanxi. Qinba Mountain is one of the 11 poorest regions targeted for concentrated interventions under the 2011−2020 poverty reduction strategy of PRC Government. The proposed project will have direct impact on three counties (Hanbin District, Xunyang County and Shangnan County), all of which have been designated as national poverty counties since the 1990s. In 2012, Shaanxi province raised the poverty line to CNY2785, which is higher than the national poverty line of CNY 2,300. The overall poverty incidence of Shaanxi is 30%, using latest provincial poverty standard of CNY 2,785 is about 30% as of 2012.The poverty incidence ratio of the project county/district Xunyang, Hanbin and Shangnan is 40%, 38.6% and 34.3% respectively in 2012.

3. Lack of adequate transport accessibility and a poor quality of the road network are some of the major constraints for the social and economic development of the region.

4. The primary objectives of the road rehabilitation components are threefold: (i) to upgrade network capacity for an expanding transport volume in the area, (ii) to provide all-weather access to the village and county roads that connect to the trunk roads, and (iii) to improve the road safety condition of these rehabilitated roads and an additional 660 km of rural roads.

5. The Project will comprise four components: (i) Component 1: Rehabilitation of 193 km arterial highways, including S102 from Xunyang to Xiaohe Highway, G316 section from Xunyang to Ankang City Center Highway and S224 Shangnan County Chengguan Town to boundary of Shaanxi and Hubei provinces. (ii) Component 2: Upgrade of 8 rural roads with the total length of 136.4 km, including three township roads in Xunyang County, Hanbin District and Shangnan County (one each county/district) and five village roads in Xunyang County (three) and Hanbin District (two). (iii) Component 3: Improvement of the road safety of subproject 1 and 2 and other road sections of about 660 km; (iv) Component 4: Capability building and agency development, with the focus on the systematic capability of Shaanxi Provincial Transport Department related to road safety.

6. The project will benefit 1.7 million local people from the 3 project counties and district, and many more from the neighboring provinces and counties. Among the 1.7 million beneficiaries, rural and urban residents account for 78% and 22% respectively.

1.2 Preparation of RP

7. Financed by ADB, the project needs preparation of Resettlement Plan (RP) before project construction, based on the standard requirements of ADB of the loan-aided project. From 8 to 11 April,

2014, ADB Project Preparation Technical Inception Mission (short for “Inception Mission”) visited Xi’an and determined the content, principle and requirement of project Resettlement Plans. The “Inception Mission” and SPTD (the executing agency) confirmed: The project RPs include the following: (i) Formulating three independent RPs for trunk highway and township highway by units of the 3 project implementation counties and district. One RP for each county/district is required to cover its trunk highways and township roads; (ii) Formulating independent RPs for village roads by county (district). Because no village road upgrading are included in Shangnan County, the RPs for village roads only involves Xunyang County and Hanbin District; and (iii) A resettlement framework (RF) for road safety subproject (about 660 km) including the due-diligence taken during the PPTA to assess potential LAR impacts of the road safety component.

8. Based on the above tasks, the SPTD authorized consultant experts from Shaanxi Academy of Social Sciences to formulate the corresponding documents.

9. At the PPTA stage, a RP was prepared based on the feasibility study report, which has been approved by ADB. According to its agreement with the ADB, the Hanbin District Government has updated this RP based on the DMS.

10. Based on the original RP approved by the ADB, the basis of the updated RP are: (i) construction drawing design prepared by Shannxi Transport and highway design company Ltd. in September 2015, and (ii) detailed resettlement measurement survey conducted from October to November 2015, which was organized by the Hanbin PMO, and participated by Hanbin District Land Resource Bureau, Shaanxi Academy of Social Sciences and representatives of related counties, townships, villages and affected persons. Meanwhile, the consultations and public participations were held to inform and discuss results of the survey and proposed resettlement schemes.

1.3 Scope of the Hanbin Highway Road Subproject

11. Hanbin trunk road component includes improvement to the G316 (national road) between the Hanbin District of Ankang City and Lvhe Town of Xunyang County section (hereinafter short for Anxun Highway) in total of 34.4 km, and upgrade to Yanba and Dongqiao (rural road component, road #5) township road, hereinafter short for Yandong Highway in total of 10.7 km. Figure 1-1 shows the distribution of the project roads. Note G316 (Anxun Highway) and Road #5 Yandong Highway covered by this RP.

Figure 1-1: Shaanxi Mountain Road Safety Demonstration Project

12. Anxun Highway improvement starts at Lvhe Town of Xunyang County, traverse through Lijiazhuang village, Xuejiawan village, Duanjiahe village, Gaobiliang village and Beiyan village in Xunyang County, then runs through village of Longquan, Zaoyang, Dongwan village in Hanbin District and ends in Jinxing village.

13. Yandong Highway upgrade starts from the connecting point of Jieji River and Yanba highway, runs through Heihu Village, Tangtai Village and Guiping Village, and ends at the Tshape crossing formed by Dongqiao Village of Yinghu Town and S207. The details see appendix 9 of the PPTA report. Table 1-1 summarizes the basic scope of the subproject.

Table 1-1: Basic Information of Hanbin Trunk Road Subproject Length Scope of project’s impact Component Project construction content and class investment zone II Starting from Lvhe Town of Xunyang County, it runs through Duanhe Town, Zaoyang Town and Two towns (Duanjiahe Town Anxun Guanmiao Town, and finally reaches 34.386 km, and Zaoyang Town) and upgrade seven villages (Lijiazhuag, Highway the bridgehead of CNY 292.53 from Xuejiawan, Beian, Zaoyang, (G316) Hanjiang Bridge. million class III to Dongwan and Longquan), ROW to be widened from about 7.5 reconstruction class II totaling m to 8.5-10 m, for some sections 2518 people with existing 12 m, no widening required. Stating from the highway connecting Jieji River and Yanba Highway. It runs through Heihu 10.697 km, Two villages (Yinghu and Yandong Village, Tangtai Village and upgrade CNY Yanba) and four villages Highway Guiping Village, and ends at the from no 30.03 (Dongqiao, Heihu, Tangtai (township road) T-shape crossing formed by class to million and Guiping), totaling 407 reconstruction Dongqiao Village of Yinghu Town Class IV people and S207. Row to be widened from 4 m to 6.5 m Sources: Preliminary Design Documents, and resettlement DMS

1.4 Measures Employed To Avoid or Furthest Reduce Land Acquisition and Demolition

14. During the alignment selection, feasibility study and preliminary design of the project, great efforts are taken to avoid or reduce the impact of land acquisition and demolition. Three basic rules are followed throughout the whole process of project preparation:  Keep the alignment away from cultural landscape and key culture relics protection units.  Keep the alignment close to but not clashing with the existing or planned residential area.  Keep the alignment away from or try to reduce encroachment on environmentally sensitive area and reduce acquisition of primary cultivated land.

15. In the preliminary design stage, at least two options are compared in detail for each key section. Through comprehensive analysis and balance of project engineering requirements, environmental impact, land acquisition and house demolition, and project investment and following the above three basic requirements, optimized plans are selected. Overall, land acquisition and house demolition reduced significantly. Table 1-2 summarized Anxun highway overall results of measures to reduce of land acquisition and house demolition and an example section comparison.

Optimized design of Aijiahe section (K22+800～K24+211.408) of Anxun Highway

16. This is a key section that requires realignment to avoid existing Xiangyang-Chongqing Railway. The feasibility report option B (green line in the map) has been recommended. In the preliminary design stage, alternative option A (redline in the map) has been planned and assessed. The specific plan comparison is as follows:

(i) Option A (Selected option in preliminary design stage, red line in the map):

17. In this plan, the route starts from K22+800, and deviates from the old route at K23+100; then at K23+210, with a new Nianzigou Bridge built across the ditch, and the old route is connected at K23+300 (Here, the horizontal distance from the existing tunnel of XiangyangChongqing Railway is 13.6 m, and the designed elevation from the existing tunnel is 28 m); the old route part is to be widened and rebuilt, and the planning route deviates from the old route at K23+520; at K23+667, with a new Aijiahe Bridge to be built across the ditch, and the old route is connected at K23+783 (Here, the horizontal distance from another existing tunnel of XiangyangChongqing Railway is 12 m, and the designed elevation from the tunnel is 14 m); a 78 m long Zaoyang tunnel is to be built at K23+822~K23+900, connecting with the old route. The total length of the route is 1.252 km.

18. Advantage: By widening and rebuilding the old road, the tunnel length is shortened and the project cost is reduced CNY 21.32 million compared to plan B. Xiangyang-Chongqing Railway is avoided and impact of land acquisition and demolition for construction is reduced. Land acquisition decrease from 23.55mu to 21.58mu, save about 1.97 mu or 8.4%. House demolition decrease from 2130 square meters to 200 square meters, reduced 90.6%.

19. Disadvantage: The two newly built bridges are close to the existing tunnel of XiangyangChongqing Railway resulted in (i) many potential disturbance during the construction; (ii) increasing technical difficulties of construction: facing a high slope at K23+320, the king-pile will be 18.22 m deep and the maximum depth of the slope is 29.33 m.

(ii) Option B (recommended by feasibility plan, green line in the map):

20. In this plan, the route starts from K22+800, and deviates from the old route at K23+100; then, at K23+205, a new Nianzigou Bridge (3×50m+20m pre-stressed concrete T girder and box girder) is to be built across the ditch, and the old route is connected at K23+290 (Here, the horizontal distance from the tunnel exit of Xiangyang-Chongqing Railway is 90m); then, a 388 m long Zaoyang tunnel is to be built at K23+298~K23+686, connecting with the old route at K23+690 (Here, the horizontal distance from the tunnel exit of Xiangyang-Chongqing Railway is 28 m); at K23+830, a new Aijiahe Bridge (5×20+2×40+20+2×40 m prestress box girder) is to be built across the Xiangyang-Chongqing Railway and the multiple tracks; at K23+746, the designed elevation across Xiangyang-Chongqing Railway is 289.259m, and the elevation of the track roof here is 269.2m; at K23+905, the designed elevation across the multiple tracks of Xiangyang-Chongqing Railway is 287.18m, and the elevation of the track roof here is 265.42 m; the old route is connect at K23+970. The total length of the route is 1.411 km. Advantage: It avoids Xiangyang-Chongqing Railway and the difficulty of construction is low.

21. Advantage: It avoids Xiangyang-Chongqing Railway tunnel exit at a longer horizontal distance and higher vertical distance and reduces the technical difficulties of construction implementation.

22. Disadvantage: the costs are CNY 21.32 million higher than option A resulted mainly by the longer Zaoyang tunnel (388 meters of option B versus 78 meters of Option A) and more house demolition and land acquisition. The plan involves 1,930 more square meters house demolition and 1.97 mu more land acquisition compared to option A.

23. With comprehensive comparison, Plan A is recommended. Figure 1-2 shows the two options and Table 1-2 summarizes the comparison of overall Anxun highway and Aijiahe section as an example.

Figure 1-2: Option Comparisons for Daling Section

Table 1-2: The Comparison of Overall Anxun Highway and Aijiahe Section as an Example Options in preliminary Options in detailed design Optimized plan and design relocation reduced Item No. Relocation description Length of Resettlement Length of Resettlement Optimized reduced route impact route impact plan

The building Cultivated Cultivated demolition land land increased by 2 Overall A route of acquisition of A route of Acquisition of detailed 359m , but land 1 Anxun 34.368km 150.96 mu, 34.368km 132.54mu, design was cultivated Highway long building long building selected acquisition demolition of demolition of reduced 9,915m2 10244m2 by 18.42 mu Building Land Land demolition acquisition of acquisition of detailed Aijiahe (K22+800～ (K22+800～ reduced 23.55mu, 21.58 mu, design 2 2 section as K24+211.40 K24+211.40 1,930m and building building option was an example 8) 8) land demolition of demolition of selected acquisition 2 2 2130 m 200 m reduced 1.97mu Source: field resettlement survey in July 2014 and resettlement DMS

2 Project Impact

2.1 Survey Method and Process

24. The impact scope is based on the detailed design and resettlement DMS conducted during October and November 2015.

2.1.1 Project survey of the early stage

25. The project resettlement survey included two stages: During the feasibility study phase from July 2011 to January 2014, consultant experts of Shaanxi Academy of Social Sciences together with the authorized feasibility study team conducted preliminary project impact survey. General social and economic status information were collected and the levels of village and land impacts are estimated. Local government line agencies and potential affected village leaders and village representatives are consulted. Opinions on project scope and alignment selection are incorporated in the initial project scope.

26. In February 2014, after receiving the project preliminary design, consultant experts of Shaanxi Academy of Social Sciences together with the design institute and IA reviewed and updated the resettlement impact estimation, conducted social economic survey of the affected county, town, and village, and sampled affected HHs. Key informants interview, focus group discussion and field observation were also employed to collect comments and suggestions towards the project scope, design and resettlement plan.

27. From October to November 2015, a resettlement detailed measurement survey was conducted based on the detailed design. Hanbin PMO organized Hanbin Land Resource Bureau to measure all resettlement impacts on site. During the survey, consultations were held, and the results were agreed by related stakeholders.

2.1.2 Data source and survey method

28. The data in this RP is derived from: (i) Secondary data collected from local government agencies, villages, literature review of the existing statistic data and five-year plans, and project design documents provided by PMO and design institute, (ii) Primary data collected through field sample households survey, key informants interview, focus group discussion, consultation meetings and some physical measurements, and (iii) resettlement DMS.

29. Survey on land acquisition: Based on the detailed design, the survey team investigated the total land acquisition size on site and categorized the land acquisition by land types and ownership according to the field observation and village leader interview during resettlement DMS.

30. Survey on the affected population: Based on land acquisition scope by the detailed design and resettlement DMS, socioeconomic sampling surveys were carried out on the affected population, including ethnicity, age, educational background, employment status, income and expenditure structures, etc. Sampling households are from 6 villages, including 4 villages along the Anxun highway and two villages along the Yandong highway, accounting for 42.9 % of the total affected villages. The sampling survey involves 123 households (14.4%) of the total affected households. The survey also involves 14 group interviews in total.

31. Survey on the demolished houses and ancillary facilities: The project involves house demolition. On-site check was conducted for the demolished houses one by one, including all ancillary facilities. The survey team together with the village leaders based on the detailed design, identified the affected house and ancillary facilities, documented ownership, categorized structure types and size.

32. Survey on scattered trees: The scattered trees within the impact scope of the land acquisition are checked on site so as to distinguish fruit trees from other trees. Numbers and varieties were recorded.

33. Survey on special facilities: Surveys were done on the affected electric power supply, telecommunications cables and other special facilities. Based on the existing information from the line departments, the survey team together with representatives from the owner departments carried out the field check and recording.

2.2 Overall Impact of the Sub-Project Road Components

34. The impact of land acquisition and demolition of the project involves four towns and 14 administrative villages. See Table 2-1 for reference.

Table 2-1: List of Towns and Administrative Villages affected by Road Components Road Name of town/ street Name of village/ neighborhood committee affected Components affected Dongwan Village, Zaoyang Village, Longquan Village, Beian Village, Zaoyang town and Anxun Highway Gaobiliang Village, Xuejiawan Village, Mituosi Village Duanjiahe town Wenya Village, Huangqiao Village and Lijiazhuang Village Yandong Highway Yanban town and Heihu Village, Tangtai Village, Guiping Village and Dongqiao Village Yinghu Town Source: Field resettlement survey in July and August 2014, and resettlement DMS.

35. The road components will include permanent land acquisition totaling 456.19 mu, temporary land occupation 46.61mu, and building demolition of 10,244 ㎡. Scattered trees, power poles, electric wire, tombs, enclosure, water wells and other ground ancillary facilities will be affected by the land acquisition and demolition. A total of 854 households with 2,925 persons are affected, including 56 households with 238 persons to be affected by HD.

36. No enterprises or shops are affected by the sub-project.

37. According to the household information of the affected villages, no ethnic minority population is affected by the land acquisition and demolition in the project area.

2.3 Impact of Permanent Collective Land Acquisition

38. The project will permanently acquire 456.19 mu rural collective land of the abovementioned areas, including cultivated land of 132.54 mu (29.05%), housing plot or homestead of 20.8mu (4.56%), barren land (Slope unused land, poor soil land, rocks, riverbed, etc.) of 7.39 mu (1.60%) and forest land of 295.46mu (64.77%).

Table 2-2: Permanent Land Acquisition Impact by Land Type and Affected Villages Village Permanent land acquisition (mu) committee No. of No. of Road Town / Cultivate Homestea Forestlan Barre Sub- affecte affecte communit d land d d n land total d HH d y Zaoyan Dongwan 12.53 2.08 4.01 0 18.62 35 116 g Zaoyang 26.57 6.9 26.36 0 59.83 92 373 Longquan 12.60 5.95 0 0 18.55 112 396 Beian 5.35 0.71 7.46 0 13.52 45 150 Gaobiliang 3.72 0.42 20.92 0 25.06 91 289 Anxun 139.1 Xuejiawan 38.13 2.47 98.59 0 301 930 Highwa Duanjia 9 y he Huangqiao 0 0 2.31 0 2.31 2 7 Mituosi 1.42 0 9.42 0 10.84 25 80 Wenya 0.32 0.15 20.86 0 21.33 45 142 Lijiawan 2.45 0 9.15 0 11.6 9 35 320.8 Subtotal 103.09 18.68 199.08 0 757 2518 5 Heihu 9.52 0.23 0 3.67 13.42 13 52 Yandon Yanba Tangtai 10.68 0.67 20.15 3.72 35.22 21 85 g Guiping 8.47 0.87 46.57 0 55.91 28 112 Highwa Yinghu Dongqiao 0.78 0.35 29.66 0 30.79 35 158 y 135.3 Subtotal 29.45 2.12 96.38 7.39 97 407 4 456.1 Total 132.54 20.8 295.46 7.39 854 2925 9 Proportion % 29.05 4.56 64.77 1.62 100 / / Data source: Resettlement Survey in July and August 2014, and resettlement DMS.

39. Table 2-3 shows details of land acquisition by road component. Anxun Highway will involve the most land acquisition (about 78.8% of total cultivated land, 89.8% of total housing plot, 67.4% of total forest land and none of barren land) compared to Yandong Highway (22.2% of total cultivated land, 10.2% of total housing plot, 32.4% of forest land and 100% barren land acquisition). In terms of affected households and population, Anxun Highway has 88.6% and 86.1% of AHs and APs compared to 11.4% and 13.9% for Yandong Highway.

Table 2-3: Permanent Land Acquisition Impact by Road Components Permanent land acquisition (mu) Affected Name of Affected Cultivated Forest Barren population Highway Hosing Plot Total households land Land land Anxun Highway 103.09 18.68 199.1 0 320.85 757 2518

Proportion % 77.8 89.81 67.4 0 70.3 88.64 86.09 Yandong 29.45 2.12 96.38 7.39 135.34 97 407 Highway Proportion % 22.2 10.19 32.6 100 29.7 11.36 13.91 Total 132.54 20.8 295.46 7.39 456.19 854 2925 Data source: field survey in July and August 2014, and resettlement DMS

40. Among the affected households, 9 households will be affected by homestead land affection only, namely affected by house demolition rather than by other land acquisition. Barren land is unused land owned by village collective. It is mainly rocky slopes along the existing road or river side waste land. Expanding width by using barren land is very much costly in terms of construction costs but saves cultivated land. In the previous road project, it is a common practice in Shaanxi mountainous road that barren land contribution to road construction from village is not compensated. During the field survey, villagers are aware of that and agreed. APs’ concern is concentrated on cultivated land and forest which they have direct use right and income generation potential. The Affected HH identified here are mainly by cultivated land acquisition and forest land.

41. As the land acquisition for road is linear, the number of affected villages is large, but impacts are limited size per village and per household. Of the 14 affected villages, Longguan village has the highest percentage (38.4%) of households affected while Huangqiao has the lowest (0.2%). Per village cultivated land loss rate ranges from 0.2% in Huangqiao village to 1.64% in Xuejiawan village. In terms of average land loss of affected households, the average is 4.2% (the highest 9.75% in Dongwan village while the lowest is in Huangqiao village, where no cultivated land will be acquired.

Table 2-4: Permanent Land Acquisition Impact Before land acquisition After land acquisition No. of HH Village Per HH Per HH Affected Cultiva affected Cultivate cultivate Road Town No. of cultivate cultivated Village ted by land d land d land HH d land land loss land acquisitio loss (mu) loss (mu) ratio % n ratio % Dongwan 307 1127 3.67 35 12.53 1.11% 9.75% Zao Zaoyang 475 2037 4.29 92 26.57 1.30% 6.73% Yang Longquan 330 1200 3.64 112 12.6 1.05% 3.09% Beian 446 1688 3.78 45 5.35 0.32% 3.14% Anxun Gaobiliang 703 2800 3.98 91 3.72 0.13% 1.03% Highway Xuejiawan 1165 2325 2.00 301 38.13 1.64% 6.35% Duanjia Huangqiao 856 2140 2.50 2 0 0.00% 0.00% he Mituosi 508 1574 3.10 25 1.42 0.09% 1.83% Wenya 472 1227 2.60 45 0.32 0.03% 0.27% Lijiawan 647 3400 5.26 9 2.45 0.07% 5.18% Yandon Heihu 148 1200 8.11 13 9.52 0.79% 9.03% g Yan ba Tangtai 142 1200 8.45 21 10.68 0.89% 6.02% Highway Guiping 208 1080 5.19 28 8.47 0.78% 5.83%

Before land acquisition After land acquisition No. of HH Village Per HH Per HH Affected Cultiva affected Cultivate cultivate Road Town No. of cultivate cultivated Village ted by land d land d land HH d land land loss land acquisitio loss (mu) loss (mu) ratio % n ratio % Ying hu Dongqiao 453 2745 6.06 35 0.78 0.03% 0.37% Total 6860 25743 3.75 854 132.54 0.51% 4.14% Data source: field RP survey in July and August 2014, and resettlement DMS.

42. In terms of individual household level land loss rate, among the 854 households affected by LA, 661 households (77.4%) will lose 0-5% of their cultivated land, 141 households (16.9%) will lose 5-8%, 52 households (6.1%) will lose 8-10% of their cultivated land. No household will lose more than 10% land. Table 2-5: Land Loss Rate Distribution of Affected Households Distribution of cultivated land loss ratio of land Administrative area requisitioned farmer households in the project Project name (household) Town Village ≤5% 5—8% 8-10% 10-15% Dongwan 14 9 12 0 Zaoyang Zaoyang 62 30 0 0 Longquan 88 24 0 0 Beian 40 5 0 0 Anxun Gaobiliang 83 8 0 0 Highway Xuejiawan 245 29 27 0 Duanjiahe Huangqiao 2 0 0 0 Mituosi 25 0 0 0 Wenya 45 0 0 0 Lijiawan 3 5 1 0 Heihu 3 5 5 0 Yandong Yanba Tangtai 4 13 4 0 Highway Guiping 12 13 3 0 Yinghu Dongqiao 35 0 0 0 Total 661 141 52 0 Proportion % 77.4 16.5 6.1 0 Data source: Field Socioeconomic survey and resettlement survey in July-August 2014, and resettlement DMS

43. Based on above analysis, it can be concluded that impact of land acquisition does not affect households significantly.

2.4 Temporary Land Occupation 44. In the construction scheme, Yandong Highway involves temporary land occupation, including dry land occupation of 29.16mu, and paddy field of 17.45 mu, totaling 46.56 mu cultivated land. Compensation of CNY 1,300 per mu per year will be paid to the affected households directly. After the construction of the project, the land will be fully recovered by the contractors.

2.5 Analysis of Impact of Residential House Demolition

45. The project will involve housing demolition of 10,244m2, including brick-concrete houses of 7,521.97m2 (73.43%), brick-wood houses of 810.46m2 (7.91%), earth-wood houses of 1,569.8m2

(15.32%) and simple structure or makeshift houses of 341.77m2 (3.34%). All buildings are rural residential houses; there are no urban houses. A total 56 households with 238 people are affected by the demolition. About 70% of the house demolition will be caused by the Anxun Highway.

Table 2-6: Impact of Demolished Rural Residential Houses House demolition (㎡)

Road Town Village Brick- Brick - Earth- Makeshift Sub- AHs APs Concrete wood wood houses total

Dongwan 650 80 0 0 730 3 12 zaoyang Zaoyang 3270 0 770 0 4040 12 46 Anxun Longquan 1106 0 0 0 1106 4 15 Highway Duanjiahe 365.84 69.67 0 0 435.51 2 6 Duan Wenya 162.54 0 0 0 162.54 1 4 jiahe Xuejiawan 1380.59 590.79 16.8 130.77 2118.95 16 60 Subtotal 6934.97 740.46 786.8 130.77 8593 38 143 Heihu 0 0 150 0 150 1 4 Yanba Tangtai 76 0 254 126 456 6 27 Yan dong Guiping 311 27 379 30 747 7 36 High way Yinghu Dongqiao 200 43 0 55 298 4 28 Subtotal 587 70 783 211 1651 18 95 Total 7521.97 810.46 1569.8 341.77 10244 56 238 Proportion (%) 73.43% 7.91% 15.32% 3.34% / / / Data source: Field resettlement survey in July-August 2014, and resettlement DMS

46. Of the 56 house demolition affected households, 19 (33.9%) will lose less than 100m2; 14 households (25%) will lose 100~150m2; 10 (17.9%) will lose 151~300m2; 8 households (14.3%) will lose 301~450m2; 5 households (8.9%) will lose over 450m2.

47. Among the HDs, 3 households are potential partial affected by annex toilet or yard fence demolition only. The rest are all entire house demolition.

Table 2-7: Affected Households Distribution by House Size Demolition No. of Households Road <100m2 100~150m2 151~300m2 301~450m2 >450m2 Subtotal Annxun Highway 6 12 8 7 5 38 Yandong Highway 13 2 2 1 0 18 Total 19 14 10 8 5 56 Proportion (%) 33.9% 25% 17.9% 14.3% 8.9% / Data source: Field resettlement survey in July-August 2014 and resettlement DMS

2.6 Impact of Demolished Buildings of Enterprises and Public Institutions

48. There are no buildings related to enterprises and public institutions to be demolished.

2.7 Affected Infrastructure and Ground Ancillary Facilities

49. The project affects toilets, tombs, trees and other 8 categories (refer Table 2-8).

Table 2-8: Affected Ground Ancillary Facilities Anxun Highway Yandong Highway Total Item Unit Quantity Quantity Quantity Livestock pen m2 110 21 131

Brick wall enclosure m2 410 0 410 Toilet m2 8 2 10 Tomb Tomb 26 5 31 Street lamp Unit 15 0 15 Gate Unit 1 0 1 Water well Unit 13 0 13 Electric pole Piece 141 13 154 Electrical cable m 25700 0 25700 Fruited tree Tree 2799 0 2799 Young Timber tree Tree 4332 267 4599 Data source: Field Resettlement survey in July-August 2014 and resettlement DMS

2.8 Affected Population

2.8.1 Overall affected population

50. A total of 854 households with 2,925 people are affected by the projects, including 798 households with 2,687 people affected by land acquisition only, 56 households with 238 people both land acquisition and house demolition. No enterprise and public institution is affected by the land acquisition and demolition. Table 2-9: Affected Population County Road Affected by LA Affected by HD AHs 757 38 Anxun Highway Aps 2518 143 AHs 97 18 Hanbin District Yandong Highway Aps 407 95 AHs 854 56 Total Aps 2925 238 Data source: Field resettlement survey in July-August 2014, and resettlement DMS.

2.8.2 Affected vulnerable groups

51. The vulnerable groups affected by the project mainly include the elderly with no other supporting family members, single-parent families, orphans, family under MLSS, the disabled, poverty families, etc. During the resettlement DMS, the vulnerable groups1 have been rechecked and confirmed. See details in Table 2-10 for the definition standard of vulnerable groups and the number of vulnerable group households. Double counting avoided.

1 All are the poor whose annual income per capita is lower than the poverty line, CNY 2785 in 2014.

Table 2-10: Affected Vulnerable Groups Yangdong Anxun Type Definition standard Highway total Highway(HH) (HH) Annual per capita income lower The poor under MLSS 64 7 71 than CNY1560. Single-parent with children Single-parent family under 14 years old, family 9 2 11 without father or mother Family with women as primary labors, without young and Women lead family 23 3 26 middle-aged men labors (18-55 years old) The elderly over 60 years old Wubao (five guarantees) without children, relatives and 13 3 16 other supporting members Family with the members identified according to national The disable 17 2 19 standard of level I or level II disable Family with member losing work Family with long-term capacity due to disease or need 43 6 49 patients long-term medical care Subtotal (without double- 169 23 192 counting) Data source: Socioeconomic survey and field resettlement survey in July-August 2014 and resettlement DMS

52. According to the survey, poverty causes include aspects of: (i) Harsh living and production conditions due to geographical location, such as high mountain, poor soil, cold and dry weather; (ii) low value-added grain dominated production model due to remote geographical location and poor road condition; (iii) Lack of skill - limiting access as migrant labor seeking outside non-farming waged jobs; (iv) lack of information; and (v) illness or disability.

53. The project will provide additional help to the affected vulnerable households/persons. A special budget for supporting vulnerable group has been reserved in the project resettlement budget. (See Chapter 6 for specific measures).

2.8.3 Project impact on women

54. A total of 1432 (48.96%) of the affected persons are female. During the field survey, women focus group discussions were held in each surveyed village. Household interviews paid special attention to women. No outstanding negative impacts on women were found. On the contrary, women pointed out that as the women, children and elderly are the majority left behind after men and young people migrate out, the road improvements will particularly benefit them to transport goods to and from market, going to school and travel to clinic and other social service facilities. Travel will be safer, easier, and smoother.

55. In the longer term, women expected the road improvement will stimulate local industrial development and urbanization will bring more local non-farming job opportunities, which will particularly benefit women who prefer both agricultural plantation work and access to some waged jobs.

2.8.4 Affected minority population

56. All the affected villages and towns are Han concentrated area. No ethnic minority population will be affected by the project.

3 Social and Economic Profile of the Project Area

57. The sub-project is located in Hanbin District and Xunyang County of Ankang city. It will affect 4 towns/townships, and 14 villages.

3.1 Socioeconomic Profile of Project Area

3.1.1 Socioeconomic Profile of Ankang City

58. Located in the southeast of Shaanxi Province, Ankang City is in the junction of Sichuan, Shaanxi, Hubei and Chonqing provinces. Bounded by Han River, Ankang City is divided into two regions, Qinling Mountain area in the north and Daba Mountain area in the south. With Han River, Chihe River, Yuehe River as the boundary of Qinling Mountains and Daba Mountain, its landform is characterized by towering high mountains in north and south and basin valley in the middle. Ankang City administers one district and nine counties, totaling 161 towns, 1634 administrative village and 16,386 village groups.

59. Ankang has a total area of 23,534.5 km2 and a total population of 263.36 million (Changzhurenkou,2 including floating3 in population but excluding floating-out population) with an urban population of 950,000 (36%). In 2013, it achieved GDP of CNY 60.455 billion, with a growth of 13.4% compared to 2012. Therein, the added values of primary, secondary, and tertiary industries amounted to CNY 9.057 billion, CNY 32.140 billion and CNY 19.258 billion respectively. Per capita GDP reached CNY 22,938, an increase of 13.3% over 2012. Annual urban per capita disposable income was CNY 22,533, an increase of 11.0% from 2012. Rural per capita net income was CNY 6,624. The registered unemployment rate in urban area was 3.3%, and the overall level of consumer price increased by 2.7% in 2013.

Table 3-1: Selected Social and Economic Indicators of Ankang City No. Item Unit Ankang 1 Land area km2 23529 1.1 Cultivated land area 10,000mu 2699 2 Population* (Changzhurenkou) 10,000 Person 263.36 2.1 Urban population 10,000 Person 95.00 2.2 Non-agriculture population4 10,000 Person 49.61 2.3 Rural Population* 10,000 Person 168.36 3 GDP CNY10,000 604.55 3.1 Primary industry CNY10,000 90.57 3.2 Secondary industry CNY10,000 321.40 3.3 Tertiary industry CNY10,000 192.58 3.4 Per capita GDP Yuan/person 22938

2 “Changzhurenkou”: The regular population that lives in the area, excluding floating-out population but including floating-in population. 3 Floating population are those who work in the place over 6 months a year but who’s “Hukou” is registered in another place. 4 Non-agriculture population in the traditional urban population refers to those who’s “Hukou” is registered in urban city but excluding floating-in population. Currently the actual urban population is larger than the non- agriculture population in the statistics yearbook.

No. Item Unit Ankang 4 Urban per capita disposable income Yuan/person 22533 5 Rural per capita net income Yuan/person 6624 * “Changzhurenkou”: The regular population regular lives in the area, excluding floating-out population but including floating-in population. Source: Shaanxi statistics year book 2013 and PMO.

3.1.2 Socioeconomic profile of Project District and County

(i) Hanbin District

60. Hanbin District is the capital of Ankang prefecture level city located at the southeast of Shaanxi province. Its economic and social development is at the preliminary stage of industrialization. Total land area is 3,652 km2 Han River and Yuehe River run through the central area of the district; bounded by Yuehe River, the north part area of the district belongs to Qinling mountainous area and the south part belongs to the Daba Mountain ranges. The major landform of the district includes valley, hills and mountain. Climate in the area is continental monsoon climate with average annual temperature of 15.7 and average annual precipitation of 799.3 mm. Within the areas, road, railway transport and waterway transport are available. There are Xikang Expressway, Hanbai Highway (national road 316) and a number of Class II highways including Hengye (Hengkou-Yeping) Highway, Anlan (Ankang- Langao) Highway, Hengzi (Hengkou-Ziyang) Highway, Anxun (Ankang-Xunyang) Highway, etc. Yangpingguan-Ankang Railway, Xiangyang-Chongqing Railway and Xi’an-Ankang Railway intersect in Hanbin District, making it an important transportation junction connecting the Northwest, Southwest and Central South regions of China. Waterway transportation mainly on the Han River also plays an important role in this district.

61. Covering a total area of 3,652 km2, Hanbin District administers 22 towns and 318 villages (communities), with total population of 871,300 (Changzhurenkou).

62. In 2013, Hanbin District achieved GDP of RMB 16.303 billion Yuan, with year-on-year growth of 14.6%. Therein, the added value of primary industry amounted to RMB 1.92 billion Yuan, increasing by 5.8%; the added value of secondary industry amounted to RMB 6.89 billion Yuan, increasing by 21.9%; the added value of tertiary industry amounted to RMB 7.493 billion Yuan, increasing by 11.4%. The added values of primary, secondary and tertiary industries respectively accounted for 11.8%, 42.3% and 45.9% in GDP. The per capita total output value reached RMB 18,722 Yuan, increasing by 14.5% than that of last year. The total registered population of the whole district reached 1.0193 million, including agricultural population of 794,100 and non-agricultural population of 225,200. The urban per capita total annual income was CNY 22,115, and the urban per capita consumption expenditure was CNY 15,447; the rural per capita net income was CNY 5,920, and per capita living expenditure was CNY 4,839.

(ii) Xunyang County

63. Xunyang County is one of the nine counties of Ankang City, located at the southeast of Shaanxi Province, and the east section of Qinling-Daba Mountains, with Han River running through. The county is situated in the junction of Han River and Xunhe River. Covering a total area of 3,554 km2, the county administers 22 towns and 318 villages (communities), with total population of 427,300. Its economic and social development is at the preliminary stage of industrialization.

64. In 2013, it achieved GDP of CNY 10 billion, increasing by 13.5% compared to 2012. The total investment in fixed assets was CNY 7.7 billion, an increase of 27%; the total retail sales of consumer goods was CNY 2.314 billion, up by 13.52%; the general financial revenue was CNY 1.634 billion, an increase of 8.78%, the general local budget revenue was CNY 464 million, up by 21.51% in 2013. The industries above a designated scale achieved the output value of CNY 10.589 billion, an increase of 27.5%; the urban per capita annual disposable income was CNY 22,741, an increase of 10.3%; the rural per capita net income increase by 14.3% to CNY 6,757.

Table 3-2: Social and Economic Status of Xunyang County Hanbin Xunyang No. Item Unit District County 1 Land area km2 3652 3554 1.1 Cultivated land area 10,000mu 82.13 67.94 2 Population (Changzhurenkou) Person 87.13 42.73 2.1 Non-agricultural population Person 22.53 5.80 2.2 Agriculture (rural) population* Person 65.40 37.93 3 GDP RMB 100 million Yuan 163.03 100.009 3.1 Primary industry RMB 100 million Yuan 19.2 11.785 3.2 Secondary industry RMB 100 million Yuan 68.9 58.397 3.3 Tertiary industry RMB 100 million Yuan 74.93 29.827 3.4 Per capita GDP Yuan/person 18722 23388 4 Urban per capita disposable income Yuan/person 22115 22741 5 Rural per capita net income Yuan/person 5920 6757 * This rural agricultural population include migrant out labors whose “Hukou” still registered in village. Data Source: 2013 statistical yearbook of Shaanxi province, Hanbin District and Xunyang County, 2013.

3.1.3 Socioeconomic profile of affected townships

65. The road passes through 4 towns, including Zaoyang, Yanba and Yinghu Town of Hanbin District and Duanjiahe Town of Xunyang County. The total population of the four townships is 138,886 in 38,562 households having a labor force of 75,914. The average household size is 4.2-4.3 people, per capita cultivated land is 1.42-2.00 mu, per capita annual income is CNY 6,500-7,000.

Table 3-3: Selected Socio Economic Indicators of Affected Towns/Townships Rural per Per capita No. of Agriculture Cultivated capita net Road Town Popu. Labor HH size cultivated HH popu. land(mu) income land(mu) CNY/year) Duanjiahe 4599 19316 17689 9375 25111 4.2 1.42 6500 Anxun Highway Zaoyang 22893 96151 81499 44724 134611 4.2 1.65 7000 Yandong Yanba 2255 10148 8670 4780 13192 4.5 1.52 6700 Highway Yinghu 8815 38786 31028 17035 62058 4.4 2.00 6500 Total 38562 164401 138886 75914 234972 4.3 1.69 6800 Data source: 2013 statistical bulletin and statistical yearbook of Hanbin District and Xunyang County, field resettlement survey July-August 2014, updated in Oct. 2015.

3.1.4 Socioeconomic profile of affected villages

66. The project road traverses 14 administrative villages of the 4 affected townships. The conventional agricultural crops are mainly corn, wheat, etc. According to the survey, the affected villages are mainly along the existing road to be reconstructed. Benefiting from economic development of Hanbin District, capital of Ankang prefecture level city, and Xunyang County, its non-farming economy developed very fast. Agriculture is no longer the major industry. The income source of villagers in the project area mainly comes from secondary and tertiary industry.

Table 3-4: Selected Indicators of the Affected Villages Per Rural per No. Town/ Cultivated capita capita net Road Village of Popu. Labor HH size Township land (mu) cultivated income HH land (mu) (CNY/year) Dongwan 307 1137 800 1127 3.7 0.99 7000 Zaoyang Zaoyang 475 1937 800 2037 4.1 1.05 7241 Longquan 330 1320 600 1200 4.0 0.91 6500 Beian 446 1602 446 1688 3.6 1.05 6527 Gaobiliang 703 2680 703 2800 3.8 1.04 6958 Anxun Xuejiawan 1165 3093 1165 2325 2.7 0.75 6800 Duanjiahe Huangqiao 856 3442 856 2140 4.0 0.62 6070 Mituosi 508 1986 508 1574 3.9 0.79 6250 Wenya 472 1746 472 1227 3.7 0.70 5810 Lijiawan 647 2348 647 3400 3.6 1.45 6030 Heihu 148 746 217 1200 5.0 1.61 4780 Yandong Yanba Tangtai 142 560 210 1200 3.9 2.14 5300 Highway Guiping 208 890 310 1080 4.3 1.21 4100 Yinghu Dongqiao 453 1948 987 2745 4.3 1.41 5985 Total 6860 25435 8721 25743 3.7 1.01 6296 Data source: 2014 statistical bulletin and statistical yearbook of Hanbin District and Xunyang county,and resettlement DMS.

3.2 Socioeconomic Profile of Affected Households

3.2.1 Sample survey

67. Of the 854 households (2,925 persons) affected directly by the project, 123 households (509 persons) in six villages, or 14.4% of all AHs were sampled during the field survey. Table 3-5 has the sample household distribution. Out of the 854 households, about 30% are poor based on the Shaanxi provincial poverty line of annual income CNY2785 per person.

Table 3-5: Sample Household Distribution by Road, Town and Village Number of Sample Sampling Road Town Village affected Number of proportion Population households households (%) Zaoyang 150 20 79 13.3% Zaoyang Anxun Longquan 120 20 83 16.7% Highway Xuejiawan 30 20 79 66.7% Duanjiahe Gaobiliang 125 20 83 16.0%

Number of Sample Sampling Road Town Village affected Number of proportion Population households households (%) Yandong Guiping 35 21 92 60.0% Yanba Highway Tangtai 27 22 93 81.5% Total 3 6 487 123 509 25.3% Sources: Field resettlement survey in July- August 2014, and resettlement DMS..

3.2.2 Nationality and gender

68. The 123 sample households have a total population of 509, a total labor force of 255 and an average population of 4.14 per household. There is no minority nationality; out of surveyed population, 46.3% of the total surveyed population is female, who are mainly engaged in agriculture, housework and other production activities.

3.2.3 Age structure

69. Among the 509 sample people, 94 are under 16 years (18.5%), 165 are at the age of 16 ~39 years (32.4%); 184 aged from 40-59 (36.1%); and 66 people over 60 (13%). See Figure 3-1 illustrated the age structure.

Figure 3-1 Age distribution structure 3.2.4 Education background

70. Of the surveyed people, 93 people have received no education (18.2%), 281 primary or below education (55.2%); 128 people received junior high school education (25.2%); 7 people received senior high school or technical secondary school education (1.4%); zero people had received junior college or above education. Chart 3-2 illustrated the education background of sample people.

Figure 3-2: Distribution of education

3.2.5 Housing size

71. The sampled houses are of masonry brick-concrete or earth-wood structure mainly, with a total housing area of 21,736 m2, or 177 m2 per household on average and 43 m2 per capita. 29 households (20.3%) have an area less than 100 m2; 48 (33.5%) households with an area of 100-150 m2; 35 households or 24.5% with an area of 151-300 m2; 19 or 13.3% with an area of 301-450 m2; and 12 households (8.4%) with an area over 451 m2.

3.2.6 Cultivated land resource

72. Of the surveyed households, per household cultivated land is 5.1 mu and per capita cultivated land is 1.23 mu. The cultivated land mainly refers to plain dryland and sloping dryland and the major crops are corn and wheat, with yearly net return of about CNY 500 per mu. There are 24 households (19.5%) with per capita cultivated land of less than 0.5mu; 37 households (30.1%) with 0.5-1.0 mu; 37 households (30.1%) with 1.1-1.5 mu, and 25, or 20.3%, with more than 1.5 mu.

3.2.7 Household income and expenditure

1) Annual household income

73. The surveyed households have an average annual income of CNY 13,874.5, of which agricultural forms CNY 4,405.4 per household, or 24.1%. The remaining income is mainly migrant waged job (65.3%) and non-farming operation income (4.2%) such as wholesale and retail shops, restaurant, transportation operation, repair services, processing and manufacturing, poverty relief funds (0.4%) and other non-agricultural income such as property income (6.0%). Cultivated land rental is about CNY 200-300 per mu where convenient transport and irrigation are available. A more common practice is that for whole households have migrated out, land is lent to relatives to use without charge. In total, per capital annual net income is CNY4415.2 Agriculture is no longer the main income source of the surveyed rural households. This is consistent with the local industry structure where women are engaged in agriculture as well as manual manufacturing and men work in factories or go out for non- farming jobs.

74. Group discussions and village leader interviews held during the social impact survey revealed that about 20% of householder’s income is dominated by non-farming. Most of these households either

have members who are employed full time in schools, hospitals, large state-owned enterprises, large private companies and government, or are running their own businesses e.g. restaurant, transportation, wholesaler, construction and decoration etc. Some of the households as a whole family have migrated to the city as migrant labor and keep “Hukou” in village. About 60-70% of the households have their main income from non-farming sources (e.g. local wage jobs of construction, seasonal migrant labor, or a small local business of buying and selling, construction and decoration, repair etc.) and have small proportion of income from agriculture plantations. Only 10-20% of the households rely mainly on plantations or government subsidy. Most of them are the poor often as a result of elderly, disabled, illness of family member, lack of skills to be involved in waged jobs, or are responsible for taking care of young/older/illness family members.

75. During the village leader interviews and group discussions, it is estimated that the betteroff households account for 10-20% of the total households in a village, which either have permanent non- farming employment or are running business locally. The middle-level income households account for 60-70% with migrant labor as the main income source. The relatively poor households account for 10- 20%, which include the elderly, disabled, illness of family member.

Table 3-6: Income Structure of Surveyed Households Per household Per capita income Income source income Proportion (%) (CNY/Year) (CNY/Year) Income from selling grain 219.4 53.0 1.2 Income from selling economic crops 2888.2 697.6 15.8 Income from selling fresh fruit and 237.6 57.4 1.3 dried fruit Income from selling domestic animal, 146.2 35.3 0.8 Agriculture poultry and fish income from selling fungus and 603.2 145.7 3.3 medical materials Cash income from selling other 310.8 75.1 1.7 agricultural products Subtotal 4405.4 1064.1 24.1 Wholesale and retail shops 182.8 44.2 1.0 Restaurant 201.1 48.6 1.1 Transport 255.9 61.8 1.4 Repair service 109.7 26.5 0.6 Non- Processing and manufacturing 18.3 4.4 0.1 agriculture Migrant wages 11936.8 2883.0 65.3 Land acquisition compensation 0.0 0.0 0 Poverty relief funds 73.1 17.7 0.4 Other non-agricultural income 1096.8 264.9 6.0 subtotal 13874.5 3351.1 75.9 Total 18279.9 4415.2 100 Sources: Field resettlement survey and social impact survey, July-August, 2014

2) Annual family expenditure 76. The per household total annual expenditure is CNY 17,642, including daily living expenditure of CNY6262.9 (35.5%), education and medical & health expenditure of CNY 3,757.7 (21.3%),

transportation, communication and other social events expenditure of CNY 2,858 (16.2%); Production expenditure of CNY 4,445.8 (25.2%); other expenditure of CNY 317.6 (1.8%).

Table 3-7: Expenditure Structure of Surveyed Households Per household expenditure Per capita expenditure (CNY/ Proportion item (CNY/ year) year) % Living expenditure 6262.9 1512.7 35.5 Education 2575.7 622.1 14.6 Medical and health 1182.0 285.5 6.7 Transportation 405.8 98.0 2.3 Communication 229.3 55.4 1.3 Social intercourse 2222.9 536.9 12.6 expenditure Productive expenditure 4445.8 1073.8 25.2 Others 317.6 76.7 1.8 Subtotal 17642 4261 100% Sources: Field resettlement survey and social impact survey, July-August, 2014

3.2.8 Willingness of people to relocate

77. A survey of relocated people’s willingness has been conducted and the results are shown in Table 3-8 and Table 3-9.

1) Willingness of the LA affected Households

78. Although the project design documents indicated that very few households will be seriously affected by land acquisition, a significant number of 100 potential LA affected household are identified. The survey found: (i) Awareness: 94% of surveyed households are aware the road is going to be reconstructed, 4% are not quite clear about the project and 2% know nothing about it. (ii) Attitude: 95% of surveyed households support the project construction, and 5% do not care about it. None of them disapproved of it. (iii) Resettlement mode: 50% surveyed households are not willing to continue in agriculture anymore; 65% are willing to be given non-agricultural status; 100% are willing to participate in social insurance for LEF; and 93% are willing to receive technical training.

Table 3-8: Public Opinion Survey on Land Acquisition Selection proportion of the opinions of No. Questions Answers the affected households (%) 1 2 3 Total Do you know the project will be (1) Yes (2) Not quite clear 1 94 4 2 100 constructed? (3) No Do you approve the project (1)Yes (2)No (3) I 2 95 0 5 100 construction? don’t care a) Nation (1) Yes (2) No 100 0 \ 100 Who do you think can benefit from 3 b) Collectivity (1) Yes the project? (multiple choices) 100 0 \ 100 (2) No

Selection proportion of the opinions of No. Questions Answers the affected households (%) 1 2 3 Total c) Individual (1) Yes (2) 95 5 \ 100 No Do you know the compensation 4 (1) Yes (2) No 90 10 \ 100 policy for land acquisition? Do you accept the land acquisition for 5 (1) Yes (2) No 75 25 \ \ supporting the project? Are you willing to continue farming 6 (1) Yes (2) No 50 50 \ \ after land acquisition? Are you willing to be given 7 nonagricultural status after land (1) Yes (2) No 35 65 \ \ acquisition? Are you willing to work in enterprises 8 or work for others after land (1) Yes (2) No 93 7 \ \ acquisition? Are you willing to do business after 9 (1) Yes (2) No 48 52 \ \ land acquisition? Are you willing to participate in social 10 (1) Yes (2) No 100 0 \ \ insurance after land acquisition? Are you willing to receive technical 11 (1) Yes (2) No 93 7 \ \ training after land acquisition? Do you know you can lodge a 12 complaint when your lawful rights and (1) Yes (2) No 90 10 \ \ interests are violated? Sources: Social and Resettlement Surveys 2) Willingness of the Relocation affected households 79. Of the total 59 potential HD affected households, 30 were surveyed (50.9%). The findings show:

(i) Awareness: 93.3% households are aware of the road is going to be reconstructed and 6.7% are not quite clear about the project. (ii) Attitude: 90% households support the project construction, and 10% do not care about it. None of them disapprove it. (iii) Concern: 40% were concerned about the housing location; 20% concerned whether they would receive preferential funds for new housing; 10% concerned about size and type of house; 10% were concerned about the transparency of the house/housing site selection process; 20% concerned about the price of house plot/house. (iv) Compensation Mode: 40% surveyed households required cash compensation, 50% required allocation of housing land for resettlement, 10% agree to select constructed house under new rural development residential area for resettlement.

Table 3-9: Public Opinion Survey on House Relocation Selection proportion Of the opinions of No. Problems Answers the affected households (%) 1 2 3 4 5 Total Do you know the project (1) Yes (2) Not quite clear (3) 1 93.3 6.7 0 will be constructed? No \ \ 100 Do you approve the 2 (1)Yes (2)No (3) I don’t care 90 0 10 \ \ 100 project construction? Who do you think can a) Nation (1) Yes (2) No 100 0 \ \ \ 100 benefit from the project? 3 b) Collectivity (1) Yes (2) No 93.3 6.7 \ \ \ 100 (multiple choices) c) Individual (1) Yes (2) No 86.7 13.3 \ \ \ 100 Do you know the compensation policy for 4 (1) Yes (2) No 33.3 66.7 land acquisition and \ \ \ 100 house demolition? Do you accept the land acquisition and house 5 (1) Yes (2) No 93.3 6.7 demolition for supporting \ \ \ 100 the project? (1) cash compensation2 Selection of resettlement 6 dedicated by land 3 40 50 10 \ \ 100 mode for housing resettlement by unified housing What area of unified 7 (1) 120-150 ㎡ (2) Others 86.7 13.3 \ \ \ 100 housing? Where is the resettlement (1) Local group; (2) Local village/ 8 80 10 10 \ \ 100 location? commune; (3) Local town Do you know you can lodge a complaint when 9 (1) Yes (2) No 50 50 \ \ \ your lawful rights and 100 interests are violated? (1) Housing location;(2) Preference and compensation that can be What problems do you obtained; (3) Area and type of 10 concern about demolition 40 20 10 10 20 100 housing; (4) Public and transparent and resettlement? site/ house selection mode; (5) Price of land/house Sources: Field Resettlement survey, July-August 2014

3.3 General Situation of the Affected Enterprises and Public Institutions

80. The survey shows that there are no affected enterprises and public institutions.

3.4 Women’s Development in Project Area

3.4.1 Rural women profile in project areas

81. The proportion of female population was 53.2% and 53.2% in Hanbin District and Xunyang in 2012, of which the majority were rural women accounting for about 65% of total female population. Women are playing important roles both in agricultural sector as well as rural household development.

82. Based on the PPTA social impact survey, there are differences in the education level between women and men. Specifically, 20.9% of female respondents are in the no-schooling category, higher than male respondents (11.7%). Similarly, female respondents with 7-9 years of education (24.6%), is lower than for males (38.8%), and female respondents with 10-12 years of education (3.7%), is lower than for males (7.0%). However, 43.3% female obtained primary education, higher than that of men (38.3%).

83. The majority of respondents were farmers with 63.4% of females and 59.3% of males being engaged in agriculture on their farmland. Both long-term and seasonal migrant laborers were mostly men. 8.9% of males were engaged in the long-term migrant labor compared to 4.5% for women. 18.2% of men were seasonal migrant labors against only 5.2% of women. Women were often left at home both for cultivating household land and taking care of household members.

84. Women were 100% responsible for household work. The survey indicated that there were slightly more females running small businesses than men. However, of the respondents, only 1.5% of females were village cadre compared to males (4.7%), indicating that women’s participation in decision- making at village level was lower than for men.

3.4.2 Women’s roles in household livelihoods

85. Among surveyed villages, women and men are involved in not only agricultural activities but also non-agricultural practices. Women and men have different roles in agricultural production practices. Males usually dominate ploughing and clearing activities, while females are more engaged in transplanting and weeding. Both women and men take part in activities such as fertilizing, harvesting and raising pigs. Tending poultry feeding is solely a woman’s activity.

86. It is very common for both females and males to be involved in income-generating activities. Among middle-aged groups, more males are long-term as well as seasonal migrant labors compared to women. Whereas more women are left at home to undertake agricultural practices as well as to look after their household members such as children and elderly.

87. Women exclusively perform household work in addition to their agricultural work. Their roles are cooking, washing and care of small children and elders in their households.

88. Men contribute more to cash income generation in the household, and women’s roles tend to be in household maintenance like growing corn and grain, raising animals for household consumption rather than for selling purpose. Looking after children is the woman’s domain. Some interviewed women (36 females) reported that they are living in rented houses in the town to look after their school children. They no longer cultivate their land in the village. The household expenditures were fully met from their husbands’ non-farm earnings.

3.4.3 Decision-making at household and community levels

89. Females headed less than 10% of surveyed households. Men dominated decisionmaking at household level. Couples jointly discuss agriculture production activities such as planting, crop selections, seed purchases, fertilizer and equipment/tools. In many cases, women’s voices are heard during the discussion process but men make final decisions.

90. Men dominate decision making on household investments such as buying vehicles, running small shops or building new houses. The interviewed villagers indicated that men have more opportunities to go outside than women and therefore have more experience and knowledge with which to make decisions.

91. Men also dominated with respect to decision making on renting out land and on borrowing and lending money. These are very important household decisions and are definitely the responsibility of household heads.

92. Men and women equally share decision-making on household saving and buying durable consumables such as TVs, furniture, washing machines and electronic cookers. Women dominate decisions on purchase of daily consumables.

93. The participation of women in community decision-making is still much less than for men because there are the fewer women members in decision-making bodies of communities. Among 17 surveyed villages, only 7 villages have female members in village committees. Women’s participation in community management include organizing traditional festivals, special occasions like marriage ceremonies and funeral activities, attending community meetings in the absence of men, and contributing labor for public works such as village road routine maintenance and irrigation repair.

3.4.4 Women’s transport needs

94. The women’s role in the household shapes their transport patterns, frequency of women’s mobility and travel costs. Women’s transport activities are different from men’s since women often have the primary responsibility for transporting goods to and from market, and for accompanying children and elders to hospital, and for seeking job opportunities to meet increasing cash demand of households.

95. Women have similar transport needs to other social groups. Due to their higher level of domestic responsibility, women assign greater importance to transport that is easier, faster, and safer and provides more mobility, as this in turn provides more home time for productive work. Women also expect more buyers to come to the village, which would in turn further reduces travel time and thus saves more time. Specifically, women are more reliant on public transport and prefer safe and regular public transports with fixed fares.

3.4.5 Project Impacts on Women

96. The Project will bring benefits equally to women and other social groups through improvement of road safety facilities, trunk road rehabilitations and particular rural road upgrade. Shorter travel time on roads is beneficial to them, as it increases mobility, and allows more productive use of time.

97. Women are primarily local travelers for buying home consumption goods and selling produce, sending and picking up small children to and from school, traveling for health purposes, and more frequently accompanying family members to hospital. Accessing better roads, thereby, will provide them easier, faster and safer travel.

98. Public or private transport operators will be more willing to provide services when the road condition and road safety is improved. This could increase the potential for young women to travel outside the village to seek employment. Specifically, availability of public transport services, which are their primary means of travel, is important to women.

99. The trunk road rehabilitations could have potential negative impacts on women in terms of land acquisition and resettlement due to housing demolition if these issues remain unaddressed. These vulnerabilities of women resulting from land acquisition or relocation have been addressed in this RP. First, women are often in a disadvantaged position at labor markets due to lower education levels or (traditional) gender bias that might lead to less income or fewer job opportunities for them after land loss, compared to men. For example, at local labor markets, a skilled man can earn CNY 150-200 per day against CNY 100-120 for a skilled woman for the same work. The wage for an unskilled man is CNY 100-120 per day versus CNY 80-100 per day for an unskilled woman. Second, women’s needs or interests tend to be ignored during public consultation and participation since few women can voice their opinions in public and/or fewer women are invited to attend consultation meetings, for example, consultation on selection of resettlement sites. Third, a woman’s burden might be increased because the resettlement site might be far away from farmland that might keep her busier between household work and land related activities. Relocation may also increase the distance between school or hospital and home, which would increase her travel time. Later on relocation options offered by local government indicated that several alternative options ensured each household could select an option which best fit their own situation. AHs who choosing rebuild the house in the nearby area will not face such issue, AHs who choosing concentration site will not face such issues too because the offered sites are more convenience in terms of accessing school, hospital and other service facilities.

100. To facilitate livelihood restoration for affected women, various skill-training programs will be provided through a number of ongoing government initiatives. According to women’s needs, relevant training courses such as housekeeping and handicrafts should be introduced to women through Women’s Federation, or the Human Resources and Social Security Bureau with close cooperation with the Project sponsor. Provision of jobs to women will be prioritized during project construction.

101. All the above measures have been included in the Social Development Action Plan (SDAP), which has been extensively discussed with project sponsor. The SDAP addresses women’s needs and ensures women will benefit equally by the Project and the negative impacts are mitigated.

3.4.6 Measures in RP in facilitating women’s development

102. Participation and consultation: separate consultation meetings and focus group discussions have been undertaken in each surveyed village. These were very helpful for women to voice their particularly needs on road safety, compensation modes, concerns over compensation standards, etc. Women’s needs, comments and suggestions on the project have been documented and incorporated in the RP. For example, training needs of handicraft, landscaping, seedling producing and fruit tree caring, suggestions of road safety measures around the village and community based road safety education, particularly for children.

103. Women show stronger desire for project participation and most of them expressed willingness to take part in the project activity in their free time. They also expressed desires to be informed about the project job opportunities.

104. In terms of compensation on LA and HD, women are not worried about their rights. The national laws and regulations guarantee that women have equal rights on land use rights and house property legal rights. All households constructed or purchased during marriage automatically have shared- ownership between the couple, regardless of how or to whom the property was registered. 4 Legal Framework and Policies

4.1 Overview of Relevant Laws, Regulations and Policies

105. The resettlement policies of this project are based on ADB’s policies and on the laws and regulations of the People’s Republic of China (PRC). These are as follows.

106. The relevant ADB policy is ADB Safeguard Policy Statement (2009)- Safeguard requirement 2: Involuntary Resettlement

4.2 The PRC’s Laws and Regulations on Land Acquisition and Relocation

107. The PRC relevant laws and regulations include the following:

(i) The Land Administration Law of the People’s Republic of China (Amended at the Eleventh Session of the Standing Committee of the Tenth National People’s Congress on August 28, 2004; and effective as of then). Its main contents include: formulations on land ownership, overall land use plan, cultivated land protection, land for construction, supervision and inspection, legal responsibility, including land expropriation compensation, subsidy standard for relocation, and manner of relocation of relocated people.

(ii) Regulations on the Protection of Basic Cultivated Land (No.257 Decree of the State Council of The People’s Republic of China on December 27, 1998). Its main contents include: in line with Agriculture Law of the People’s Republic of China and the Land Administration Law of the People’s Republic of China, concrete formulations for the country’s protection of basic cultivated land, including delimitation, protection, supervision and management, legal responsibility, etc.

(iii) Interim Regulations on Cultivated Land Use Tax of the People’s Republic of China (No. 511 Document of the State Council issued on December 1, 2007 and effective on January 1, 2008). Its main contents include: formulations about tax contribution standard and contribution range of state construction occupied cultivated land.

(iv) Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28). Its main contents include: In order to use the land properly, to protect the legal rights of the farmers whose land is expropriated, to maintain social stability, and to perfect the land expropriation and resident relocation system, the decision puts forward the guiding principle and way to perfect the compensation of land expropriation. The decision requires all the county, city and province governments to take effective

measures to ensure that farmers’ living standards will not decrease after their land is expropriated, and that according to laws in force, the land compensation, relocation compensation, ground ancillary facilities and young crop compensation are paid in full and in time. If after the payment of land compensation and relocation compensation in accordance with the laws in force, the farmers whose land has been expropriated cannot maintain their original living standard and their social safeguards cannot be paid, the province, autonomous region and/or municipality government should agree to provide further relocation compensation. If the sum of land compensation and relocation compensation reaches the legal upper limit, but the farmers whose land has been expropriated cannot maintain their previous living standard, the local people’s government can offer subsidy with the state-owned land income. The government of province, autonomous region and/or municipality should work out and promulgate the standard of output value or price of land. The land expropriation should be the same price for the same land. National key construction projects should incorporate the expense of land expropriation into its budget.

(v) Notice on the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of China (November 3, 2004, Guotuzifa [2004] No. 238). The main contents include: to put forward how to carry through The Decision of the State Council on Deepening the Reform and Strictly Enforcing Land Administration especially aiming at some problems during the land expropriation compensation and relocation system. There are two aspects:

a) To formulate unified annual output value standard. The provincial land and resources administration along with relevant agencies works out the minimum unified annual output value of every county in the province, then announce and carry out it after the approval of the province government. The workout of unified annual output value standard should consider the type and quality of expropriated land, the investment on the land, the price of agricultural products, the grade of land, and so on. b) To affirm unified annual output value multipliers. The unified annual output value times of land compensation and resettlement subsidy should ensure the farmers whose land is expropriated remain at a standard no lower than before and be worked out within the legal limit. According to the legal unified annual output value times, if the land compensation and resettlement subsidy couldn't ensure that the peasants whose land is expropriated can’t maintain the original living level or pay for their social security, the times can be increased after the approval of provincial government. If the sum of land compensation and resettlement subsidy is 30 times of the unified annual output value, the farmers whose land is expropriated still couldn't remain at the original living standard, the local government can provide subsidy from the state-owned land income. If the basic farmland is expropriated by the legal approval, the land compensation should be carried out according to the highest compensation standard announced by the local government.

(vi) Real Property Right Law of the People’s Republic of China (Order of the People’s Republic of China No. 62, in effect as of October 1, 2007). Its main contents include:

In accordance with the Constitution Law, the present Law is enacted with a view to maintaining the basic economic system of the state, protecting the socialist market economic order, clearly defining the attribution of the property, utilization of property, and safeguarding the real right of the right holder. The civil relationships incurred from the attribution and utilization of the property shall be governed by the present Law.

4.3 Relevant Policies of Shaanxi Province and Hanbin/Xunyang District/County

108. The relevant policies of shannxi province and counties are as follows:

(i) Regulations on the Implementation of the Land Administration Law of the People’s Republic of China of Shaanxi Province (adopted at the Twelfth Session of the Standing Committee of the Ninth Provincial People’s Congress on November 30, 1999, and effective on January 1, 2000). its main contents include: in line with the Land Administration Law of the People’s Republic of China, and the reality in Shaanxi Province, concrete formulations on the land administration in Shaanxi Province.

(ii) Regulations on Land Acquisition for Construction Project of Shaanxi Province. No.78 document issued and effective as of January 8, 2002 by Shaanxi Provincial People’s Government. its main contents include: to regulate the land acquisition in Shaanxi Province. According to The Land Administration Law of the People’s Republic of China and Regulations on the Implementation of the Land Administration Law of the People’s Republic of China of Shaanxi Province, the regulations put forward the principal and method for Shaanxi Province construction projects to protect, explore and use land reasonably, and to guarantee construction land environment and to balance the land use and the land reclaim.

(iii) Notice on the Average Standard of Unified Annual Output Value and Section ComprehensiveLand Price on Land Acquisition in Shaanxi Province [No. 36 Shaanzhengbanfa (2010)]. its main contents include: standardize the compensation criteria for unified land acquisition in Shaanxi, and make correction for the policies on different price of the same land, imbalance of the regions and low compensation criteria during land acquisition.

(iv) Supplementary Notice on Related Issues on the Center of Ankang City Construction Land Acquisition and Demolition and Farmers Affected by Land Acquisition Old-age Insurance (An Zheng Fa (2009) No. 15). Its main contents include: to regulate the procedure of construction land acquisition, compensation standard of land acquisition and ground attachment, compensation standard of demolition and relocation, resettlement and farmers affected by land acquisition old-age insurance in the center Ankang City, etc.

4.4 ADB’s Policy Requirements on Involuntary Resettlement

109. ADB involuntary resettlement safeguards covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets,

income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary.

110. The objectives of the policy: To avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups.

111. The basic principles include: (i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. (iii) Improve, or at least restore, the livelihoods of all displaced persons through (i) land- based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. (iv) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. (v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

(vii) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. (viii) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (ix) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. (x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. (xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

4.5 Differences of ADB’s and Local Policies

4.5.1 Compensation and resettlement for house

112. Difference: ADB policies require that compensation is based on replacement cost. Chinese laws accept that depreciation is reasonable, and the compensation rate for the old structure should be lower than that for new housing.

113. Solution: Compensation rates in all ADB-financed projects are based on replacement cost.

4.5.2 Compensation and resettlement for land

114. Difference: ADB policies require that compensation should be sufficient to offset any income loss, and restore long-term income-generating potential. Chinese standards are based on AAOV.

115. Solution: An early stage solution is to provide replacement land, which is hardly practical. Cash compensation is the preference of most people, though they cannot ensure the rational use of such compensation. Therefore, further technical support is needed to monitor the income of seriously affected households; especially those in vulnerable groups, and local governments should provide assistance to those in need.

4.5.3 Compensation and resettlement for vulnerable groups

116. Difference: Difference: ADB policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with impoverishment. Chinese provisions do not require social analysis, and compensation is based only on the amount of loss.

117. Solution: Special funds are available to assist the vulnerable groups, who will be further identified during the DMS. All measures have been specified in the RP. For seriously affected households the RP includes specific provisions.

4.5.4 Consultation and disclosure

118. Difference: ADB policies require APs are fully informed and consulted as soon as possible. Chinese provisions have improved the transparency of disclosure and compensation. However, APs still play a weak role in project decision-making, and the disclosure period is usually too short.

119. Solution: Consultations have begun at the early stage (before and during technical assistance). Shaanxi Provincial Communication Bureau and the Xunyang Government agreed to disclose the RP to APs as required by ADB.

4.5.5 Lack of legal title

120. Difference: ADB policies require all demolished houses, whether lawful or not, should be compensated for at the same rates. According to Chinese laws, people without local registered residence are entitled to the same compensation as local people. In addition, prevailing Chinese laws stipulate that no compensation should be provided for the acquisition of illegally owned land and houses.

121. Solution: For an ADB financed project, all APs, whether lawful or not, whether having ownership or right of use, will be protected, and provided with compensation or assistance.

4.5.6 Resettlement monitoring, evaluation and reporting

122. Difference: ADB requires internal and external resettlement monitoring. However, laws of China have no such requirement except projects for reservoirs.

123. Solution: Follow the ADB requirements, Internal and external resettlement monitoring systems have been established for all ADB financed projects, and this has been included in the RP. The requirements for internal and external monitoring reporting are specified in the RP.

4.6 ADB Policy on Gender and Development

124. ADB’s Gender and Development Policy is a critical mainstreaming strategy in promoting gender equality, and includes the following key points: (i) Gender sensitivity: Particular attention should be paid to women’s needs and expectations in consideration of impacts of the ADB-financed project on men and women; (ii) Gender analysis: A systematic analysis of the project’s impacts on men and women should be made to learn their economic and social connections;

(iii) Gender planning: A special strategy that offers equal opportunities to men and women should be developed; and (iv) Mainstreaming: ADB considers the gender issue in all aspects of the project, and encourages women to participate in decision-making in the development process actively.

5 Compensation Principle and Entitlement

5.1 Resettlement Principles

125. The principles for compensation and entitlement of the Project have been developed in accordance with the regulations and policies of the PRC and ADB, with the aim of ensuring that APs obtain sufficient compensation based on replacement cost and assistance so that their production and livelihoods are at least restored to pre-project levels. Table 5-1 presents the resettlement principles.

Table 5-1: Resettlement Principles of the Project No. Principle 1 Involuntary resettlement should be avoided where feasible. 2 The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the project. The rate of compensation for acquired housing, land and other assets will be calculated at full replacement costs. 3 The APs are given compensation in full replacement cost and assistance in resettlement whether legal title is available or not. 4 If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities are provided for the lost land. 5 The IA will ensure that APs fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the RP. 6 The IA will ensure that no physical displacement or economic displacement will occur until (i) compensation at full replacement cost has been paid to each AP for project components or sections that are ready to be constructed; (ii) other entitlements listed in the RP have been provided to APs; and (iii) a comprehensive income and livelihood rehabilitation program, supported by an adequate budget, is in place to help APs improve, or at least restore, their incomes and livelihoods. 7 Vulnerable groups are provided special assistance or treatment so that they lead a better life, and all APs should have an opportunity to benefit from the project. At least two members of each AH receive skills training, including at least one woman. 8 The resettlement plan should combine with the overall planning of county/ city/ district. 9 If feasible, changing from “agricultural to non-agricultural” status can be provided to LEF on a voluntary basis. 10 All resettlement cost is included in the project budget and sufficient to cover all affected aspects. The fund needs to be paid in time. 11 The IA and an external monitoring agency will monitor and measure the progress of implementation of the RP and will prepare monitoring reports to ensure that the implementation of the RP has produced the desired outcomes.

5.2 Cut-off Date of Compensation

126. The cut-off date for the eligibility for compensation is on June 30, 2015 and Hanbin District People’s Government confirms the date of relocation plan. Any newly claimed land, newly built house or settlement in the project area by the APs after this date is not entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation is not counted in the inventory of losses.

5.3 Compensation Rate for Permanent Land Acquisition

127. According to the Shaanxi Land Acquisition Policy (Shaan Zheng Ban Fa[ 2010] No.36)， in the project county Xunyang area, the unified AAOV and compensation multiple of Hanbin District and Xunyang County determined in accordance with Shaanxi land acquisition policy, the unified AAOV of irrigated land is CNY1,197 in the subproject area, and the compensation multiple is 25, and therefore compensation standard is CNY 29,928 per mu. However, in the Supplementary Notice on Land Acquisition and Demolition for Ankang Central City Construction and Land-requisitioned Farmers’ Endowment Insurance (An Zheng Fa [2009] No.15), the compensation standard (including compensation for land and resettlement subsidy) for cultivated land (dryland) has increased to CNY 54,000 per mu. In order to benefit the affected households, this RP takes the compensation policy of Ankang city (An Zheng Fa [2009] No.15) as the resettlement policy basis to employ the higher compensation standard (CNY 54,000 vs CNY 29,928).

128. However, the Ankang City policy (An Zheng Fa [2009] No.15) does not define the compensation rate for a housing lot. This RP added the following contents to the compensation standard for housing plot, as follows:

129. According to the provision of Measures for Implementation of the Law of Land Administration of the People’s Republic of China in Shaanxi that the compensation for other land is 1-4 times AAOV of middle level cultivated land of local county (city, district), the compensation standard for the housing land and construction land of the project shall not exceed the legal limit – six times the unified AAOV of the project area. However, during the field consultation, the APs pointed out that this policy was made a long time ago so the rate cannot reflect the practical market value of the housing site. Based on the provision of Decision on Deepening the Reform and Conducting Strict Land Administration by the State Council (Guo Fa [2004] No.28) that “if the land compensation and resettlement subsidy paid in accordance with the current legal provision cannot help maintain the original living level of the land- requisitioned farmers and the affected farmers cannot pay the social security fees for losing land due to the land acquisition, the people's governments of province, autonomous region or municipality shall approve the increase of resettlement subsidy”, this RP therefore determines that the compensation for housing lot or homestead will be equal to 90% of compensation standard for cultivated land, namely, CNY 48,600 per mu as the project standard for rural housing lot.

158. Table 5-2 has summarized the compensation standard for land acquisition of this RP by land category.

Table 5-2: Compensation Standard for the Project Land Unit (CNY/mu) Paddy Plain Sloping Home- Forest Category Others Barren land field Dryland Dryland stead land Compensation 60,000 54,000 45,000 48,600 22,500 18,000 No compensation standard Sources: Hanbin District and Xunyang Government.

5.4 Compensation Rate for Temporary Land Occupation 130. The compensation rate for temporary land occupation is CNY 1,300 per year. Full recovering policy will be applied after project completion. Occupation will be for a maximum of 2 years and the land will be restored to its pre-occupation standards prior to its redistribution to the owners.

5.5 Compensation Rate for House Demolition 131. The compensation for all houses demolished will follow the following principles:

(i) Full replacement costs without depreciation: House demolition will be compensated at replacement costs. Table 5-4 has the details costs estimation based on the local house construction practice by type. The affected persons shall receive full replacement price without depreciation for the original house. Meanwhile, the affected people can use the building materials of the original house free of charge/cost. (ii) Various voluntary replacement choices available: The affected household can choose scattered settlement by providing similar condition of individual housing site, or choose concentrate settlement by participating in new rural construction scheme or other planning construction projects of the government, or self-settlement by using cash compensation. (iii) No demolition prior to new house ready/or agreement on new house plot/apartment units signed: No house demolition will commence prior to the new house constructed. The affected households will obtain transition compensation prior to moving to the new house. In case of some household facing difficulties of moving, village committee and the PMO will provide assistance of transport. For those household facing difficulties to find transition house, the village committee and PMO will provide assistance in renting.

132. The compensation base price adopted in this plan is listed in Table 5-3. It is discussed with the affected people and local PMO and match to the current local market price of replacement. The housing land compensation will be distributed prior to demolition, and the housing site shall be arranged within the same village group or village as much as possible. The location selection and allocation in details will be arranged after a villager representative conference organized by village committee. The “three supplies and one leveling” for the homestead will be carried out by the project construction unit, and the expanse is included in construction budget.

Table 5-3: Compensation Standard for House Demolition Base Type Structure type Unit price Remark (Yuan) CNY Housing land 48600 /mu CNY Brick-concrete 1000 /m2 The compensation for the house is

CNY determined based on market price Compensation Brick-timber 520 /m2 evaluation but not less than the proposed for house CNY base price. Earth-wood 400 /m2 CNY Makeshift house 200 /m2 Other subsidy CNY Moving subsidy CNY1000 for a household for one time. for house /m2

Base Type Structure type Unit price Remark (Yuan)

CNY250 for a household with three or below members monthly; CNY300 for a household with 4-6 members CNY / Transition subsidy monthly; and CNY400 for a household with 7 or above month members monthly. Transitional period is six month. In case of time exceeding, the actual time will be counted.

Signing agreement CNY /HH 4000 Empty and hand over the house in 20 days Early Signing CNY moving agreement 2000 Empty and hand over the house /HH reward in 30 days Signing CNY agreement 1000 Empty and hand over the house /HH in 40 days

Table 5-4: Cost of House by Type (per 100m2) Brick concrete Brick-wood Earth wood (simple house) Item Unit Unit Unit Unit Amount Amount Amount No. price No. price No. price (CNY) (CNY) (CNY) (CNY) (CNY) (CNY) A. Main building materials sub total 60020 25320 11830 Wood m3 3 1000 3000 4 1000 4000 5 1000 5000

Concrete Ton 14 380 5320 8 380 3040 0 0 0

Earth brick No. 0 0 0 0 0 0 12000 0.2 2400

Brick No. 50000 0.35 17500 50000 0.28 14000 1000 0.35 350

Steel Ton 3 4800 14400 0 0 0 0 0 0

Plastic steal m² 25 180 4500 0 0 0 0 0 0

Lime putty Ton 4 400 1600 4 400 1600 6 400 2400 Precast m 50 150 7500 0 0 0 0 0 0 Slab Tile No. 0 0 0 8000 0.21 1680 8000 0.21 1680

Sand m3 24 50 1200 20 50 1000 0 0 0 Material for proof & m² 100 50 5000 0 0 0 0 0 0 insulation B. Other material sub total 8000 7500 8000 Nails, iron wire, Nails, iron wire, Nails, iron wire, Miscellany 2000 2500 3000 electronic charge electronic electronic

Brick concrete Brick-wood Earth wood (simple house) Item Unit Unit Unit Unit Amount Amount Amount No. price No. price No. price (CNY) (CNY) (CNY) (CNY) (CNY) (CNY) charge charge

Electricity 6000 5000 5000 and hydro C. Labor day 31200 19000 19000

Skilled day 120 200 24000 70 200 14000 70 200 14000

Unskilled day 60 120 7200 50 100 5000 50 100 5000

Total 99220 51820 38830 CNY/ Unit costs 992 518 388 m² Source: Local market price 2014 and updated in October 2015

5.6 Compensation for Ground Attachment and Infrastructure

133. The compensation standard for the ground attachment facilities and infrastructure of the project is determined based on the principle of “replacement cost”, shown as Table 5-5.

Table 5-5: Compensation Standard for Ground Attachments and Infrastructure Item Unit Compensation standard Pig, sheep and cattle fence CNY/m2 220 Brick fence CNY/m3 400 Soil fence CNY/m3 120 Toilet Brick single/ each 600 Tomb Brick single (CNY/tomb) 1200 Concrete terrace CNY/m2 40 Water well CNY/well 5000 Fruit tree Fruiting (CNY/tree) 60-300 DBH of 5-10cm (CNY/tree) 10-30 Timber tree DBH of 5-30cm (CNY/tree) 20-50 DBH of less than 5cm (CNY/tree) 10

Bamboo m2 40 Sources: Hanbin District and Xunyang Government.

5.7 Compensation for Young Crops

134. The compensation for young crops is CNY 1,200, which is calculated based on the article 29 of Measures for Implementation of The Law of Land Administration of the People’s Republic of China in Shaanxi, and unified annual output value of Hanbin District and Xunyang County.

5.8 Standard of Other Costs

135. The standard of other expenses is given in Table 5-6.

Table 5-6: Tax and Fee Standard of Resettlement No Item Tax and fee standard Policy basis Measures for Implementation of The Law of Land Administration of the People’s Republic of China 1 Land reclaiming fee CNY10,500 /mu in Shaanxi (Shaanxi Provincial People’s Government Shaan Zheng Fa [2000] No.44) Notice on Adjustment of Policy of New Construction Land Use Fee of Ministry of Finance, Ministry of Land and Resources and New People's Bank of China (Cai Zong No. 48 (2006)); 2 construction land use CNY9,333.38 /mu Notice on Adjustment of Classification of New fee Construction Land Use Fee in Some Regions by Ministry of Finance and Ministry of Land and Resources (Cai Zong No. 24 (2009)) Measures for Implementation of Provisional Regulations on Cultivated Land Occupation Cultivated land 3 CNY14,666.7 Y/mu Tax of the People’s Republic of China in occupation tax Shaanxi (Order of Shaanxi Provincial People’s Government No.141) land acquisition Method for Collecting Requisitioned Land 2.8% of the total land 4 management fee Management Fee of Shaanxi (ShaanCai Gui acquisition fee [2000] N0.022)

5.9 Entitlement Matrix

136. The entitlement matrix has been established in accordance with the applicable policies in this chapter.

Table 5-7: Entitlement Matrix Type of Degree of Entitled Compensation Entitlement Impact Impact persons rates 1) Compensation of LA includes The compensation land compensation fee, resettlement standards for LA are subsidies to affected village and established in Table then to APs from village: 5-2. 456.19 mu  In the case of limited amount The compensation in 14 Permanent of land acquisition in a village, standards for young affected 854 AHs LA of and the village has reserved land crops is CNY 1200 village of 4 with 2,925 to be allocated to APs, the per mu. cultivated towns in persons compensation fee will be land Hanbin and reserved by the village for village The proportion of LA Xunyang infrastructure improvement or compensation maintenance. distribution to APs  In the case where there is no depends on reserved village land to agreement in each redistribute to APs, village, which will be

Type of Degree of Entitled Compensation Entitlement Impact Impact persons rates compensation will be decided by: 1) the proportionally distributed to APs previous percentage based on an agreement made by practiced for other village meeting. project taken land 2) Compensation for young crops from their village if will be paid to owners directly. any to ensure 3) Preferential employment to APs consistence and for unskilled jobs generated during equality, and 2) Whether there is a construction and operation need of village Preferential training to APs facility repair agreed 4) Once the APs meet the by all APs. requirements, 5 they can participate in the endowment insurance for LEF voluntarily. 5) The project will make efforts to avoid acquiring land while standing crops are ready for harvesting and if unavoidable prior notice will be given and consultations will be done with the owners. 1) Temporary land occupation fee will be paid to land owners yearly. The duration cannot be over two years. In any case occupation period need to be extended, negotiation with owners Temporary 46.61 mu by in advance required. Land restoration land Yandong / fee will be paid to those who are CNY1300 a year occupation road responsible for restoration. 2) After completion, temporarily occupied land will be restored by the contractors to the original quality and will be handed back to the land owners. 1) Cash compensation including The compensation market price of house plot and house standard is at replacement cost will be paid to established in Table AHs directly; 5-3. 56 The affected Residential 2) AHs are provided various choices households of house relocation. If the AH facing households will also housing 10,244 ㎡ with 238 difficulties to buy similar house plot receive movement demolition persons with the compensation rate, the local subsidy in lump sum township government has of CNY1000/HH. responsibility to provided one without Transition subsidy is additional costs to AH. CNY250-400/HH 3) Moving subsidy and transition monthly in maximum

5 Once APs lose their basic living and production condition or per capita arable land holding is below 0.3 mu after land acquisition can take part in endowment insurance system. Each AP, once he reaches 60 years old or she reaches 55 years old, can obtain a pension of not less than CNY 200 per month form the endowment insurance system.

Type of Degree of Entitled Compensation Entitlement Impact Impact persons rates subsidy will paid to AHs in lump sum 6 months. directly; Additional 4) Compensation for other structures resettlement subsidy and all other lost assets will be paid in of CNY10,000 per full before relocation. person and reward of 5) APs have the right to use salvaged CNY10,000 per material free of cost. person will be granted to those AHs who 6) Vulnerable groups will be assisted voluntarily give up to reconstruct the new house by local new house government. construction or give up purchasing new house in the concentrated relocation site. Significantly Losing No 1) Supplement cash compensation Not applicable. affected HH more than household together with preferential job 10% of will lose opportunities for at least one person productive more than from the affected family for project land and/or 10% of generated unskilled employment. house their land. 2) Skill training: A total amount of relocation 56 HHs 0.5% of basic resettlement fee has with been budgeted to provide skill 238 training. . persons 3) Provide credit support for those affected by who need to improve their remaining house land productivity or plan to involve in demolition. off-farming business, such as vehicle purchasing. 4) Provide assistance in obtain permission in transport service businesses 5) Provide extra subsidy for house relocation and extra rewarding for advance moving 1) All will be compensated at replacement cost, and paid directly Compensation to the proprietors. standard is Ground 2) Affected public facilities will be established in Table attachments Proprietors reconstructed by the owner 5-5. and public facilities according to the original size, Special facilities will standard and function. be negotiated case 3) Cost is included in the by case resettlement budget. 1）Special fund for the vulnerable Additional subsidy of Land 192 HHs CNY500-2,000 as Vulnerable acquisition/ (1% of basic resettlement cost) as (Table 2- the special subsidy groups house part of the RP budget. 10) for their economic demolition Provide labor for house construction recovery.

Type of Degree of Entitled Compensation Entitlement Impact Impact persons rates 2) The priority to obtain the project related employment opportunities will be given. 3) To ensure that the vulnerable groups get adequate support they will be entitled to various measures as outlined in Section 6.3 of this RP. 1) Local government will promote improved sanitation in new houses. 2) Skills training will be provided to households members needed. Women’s training needs will be specified through needs 1432 assessment. Women / women 3) Contractors will give preference to hire women, 50% unskilled job will be provided to women. 4) Every resettlement office must hire at least one female worker to be responsible for women’s affairs in the process of resettlement.

6 Resettlement and Income Restoration Plan

6.1 Impact of Permanent Land Acquisition and Income Restoration Measures

6.1.1 Impact of permanent land acquisition

137. The project involved permanent acquisition of 456.19 mu of village collective land, including cultivated land of 132.54 mu (29.1%), homestead of 20.8 mu (4.6%), forest land of 295.46 mu (64.8%) and barren land of 7.39 mu (1.60%). The land acquisition will affect 854 households with 2,925 people in 14 villages of 4 townships of Hanbin District and Xunyang County.

138. For the 14 affected villages, average cultivated land loss at village level and at household level is 0.51% and 4.14% respectively. According to land loss rate at household level, only 193 AHs of 854 AHs will lose land at the rate between 8% and 10%. No household will lose over 10%.

139. Agriculture in the affected area is wheat, corn and few vegetables with two harvests a year in general. The average output value of wheat is about CNY 570 per mu and the corn is about CNY 650 per mu. Therefore, the annual average output value of cultivated land is about CNY 1,200. The net income is about CNY 900 per mu with deduction of planting cost of CNY 300 per mu (without deduction of labor costs) according to the field investigation. This indicates that the land together with labor input contribution to household net income is CNY 900 per mu. The local cultivated land rental is CNY 200- 300 per mu annually in general, which indicates that the contribution of the land alone, to household net income is CNY 200-300 per mu only.

140. Table 6-1 calculates the income loss caused by LA. The average annual income loss per household for the affected village ranges from CNY 0 to CNY 659 with the highest in Heihu village; the average for all 14 villages is CNY 140. Note this indicated that if the village has land for adjustment or redistribution, land acquisition caused income loss to individual household is very small. The average income loss rate ranges from 0.0% to 3.5% in Heilhu; the average for all APs is less than 1% income loss. It indicated that even with no feasibility to adjust land, the income loss caused to the affected household is very limited.

Table 6-1: Permanent Land Acquisition Impact Before land acquisition After land acquisition Income loss Avera Annu Avera Avera Avera Villa Annual No. of Village ge al ge ge ge Road Affecte Land ge No. No.of Cultivat net LA cultivat land inco incom incom Incom comp Town d HH Per HH land of Perso ed land income/p affect ed land loss me e loss e loss e loss onent village size (mu/HH loss HH ns (mu) erson ed loss rate loss per per rate ) rate (CNY) HH* (mu) per (CNY AH AP per % AH % )* (CNY) (CNY) AP Dongwa 1.11 1127 3.7 307 1137 1127 3.67 7000 35 12.53 9.75% 322 97 1.39% n % 7 Zao- Zaoyan 1.30 2391 4.1 475 1937 2037 4.29 7241 92 26.57 6.73% 260 64 0.89% yang g % 3 Longqu 1.05 1134 4.0 330 1320 1200 3.64 6500 112 12.60 3.09% 101 29 0.44% an % 0 0.32 Beian 3.6 446 1602 1688 3.78 6527 45 5.35 3.14% 4815 107 32 0.49% % Anxu Gaobilia 0.13 3.8 703 2680 2800 3.98 6958 91 3.72 1.03% 3348 37 12 0.17% n ng % High Xuejiaw 116 1.64 3431 2.7 3093 2325 2.00 6800 301 38.13 6.35% 114 37 0.54% way an 5 % 7 Duan- Huangq 0.00 4.0 856 3442 2140 2.50 6070 2 0.00 0.00% 0 0 0 0.00% jiahe iao % 0.09 Mituosi 3.9 508 1986 1574 3.10 6250 25 1.42 1.83% 1278 51 16 0.26% % 0.03 Wenya 3.7 472 1746 1227 2.60 5810 45 0.32 0.27% 288 6 2 0.03% % 0.07 Lijiawan 3.6 647 2348 3400 5.26 6030 9 2.45 5.18% 2205 245 63 1.04% % 0.79 Heihu 5.0 148 746 1200 8.11 4780 13 9.52 9.03% 8568 659 165 3.45% % Yand 0.89 Yanba Tangtai 3.9 142 560 1200 8.45 5300 21 10.68 6.02% 9612 458 113 2.13% ong % High 0.78 Guiping 4.3 208 890 1080 5.19 4100 28 8.47 5.83% 7623 272 68 1.66% way % Dongqi 0.03 Ying-hu 4.3 453 1948 2745 6.06 5985 35 0.78 0.37% 702 20 4 0.07% ao % 686 0.51 1192 totals 3.7 25435 25743 3.75 6296 854 132.54 4.14% 140 41 0.65% 0 % 86 *Assume annual cultivated land net income CNY900 per mu. **Based on average per capita incomes per village as shown in Table 3-4. Source: field survey in July 2014 and resettlement DMS in October 2015.

6.1.2 Income restoration plan and assistance measures

141. As above analyzed in Table 2-5, the land acquisition impact is limited with no household experiencing a loss over 10% of cultivated land. The income restoration plan formulated is based on the will of the APs, impact degree and the feasibility of the potential options in each village. During the field consultation, cash compensation, agricultural resettlement with or without land readjustment, arranged jobs during the project construction and operation, assistance to non-farming employment and self-employment, social insurance approaches were discussed.

Table 6-2: Income Restoration Plan and Assistance Measures Selection of AHs No. No. of Non-farming Road Town of Agricultural Arranged Social AHs employment/ APs resettlement jobs Insurance business Anxun Zaoyang 239 885 19 38 182 239 Highway Duanjiahe 518 1633 41 83 394 518 Yandong Road Yanba 62 249 5 10 47 62 Yinghu 35 158 3 6 27 35 Total 854 2925 68 137 650 854 Proportion (%) 8 16 76 100 Source: Field Socioeconomic survey RP survey July-August, 2014 and updated in resettlement DMS in Oct 2015

(i) Cash compensation and distribution

142. The affected villages/village groups will be compensated in cash based on the standards discussed in Section 5.3, where compensation rates for irrigated paddy is CNY 60,000, plain dryland CNY 54,000, sloping dryland CNY 45,000, forest land CNY 22,500, other land CNY 18,000 per mu respectively (refer to Table 5-2). The land compensation distribution from village to AP has two scenarios: 1) If the land acquisition is relatively large amount and the village has not enough reserved land to be allocated to APs, which is common in the project area, 100% of the compensation will be distributed to APs directly. 2) If the land acquisition amount is small and the village has enough reserved land (e.g. returned from a household which has moved to the city) to be allocated to APs to cover their land loss fully, then the APs will be allocated land and the compensation will be reserved for village infrastructure maintenance or improvement. Standing crops compensation rate is CNY 1200, of which 100% will be paid to the affected households. This compensation will be added to the overall compensation standard of the AH.

143. The compensation rate is very comprehensive compared the current land lease price, AAOV and current income level from the land. According to the current land-leasing price in the project area, plain dryland, which is the main cultivated land type, is CNY 200-300 depending on location for convenience of transport. The project compensation for plain dryland per mu is CNY 54,000 that is worth of 180 years land leasing price at the existing higher rate of CNY 300，50 years of AAOV CNY1197 and 90 years of current land contribution of CNY900 per mu. Due to limited land acquisition per household and high compensation rate, APs are satisfied.

144. However, to ensure that the affected households use the compensation in a rational manner, the PMO and other related agencies will provide guidance and required training. The following are restoration options and assistance measures for permanent land acquisition.

(ii) Agricultural resettlement

145. About 68 AH or 8% of the total AH chose agriculture restoration. They will use the cash compensation to improve the remaining land by increase of fertilizer use or change grain crops plantation to cash crops plantation such as ginger, chili, fruit trees, and garden plant seedlings which require intensive labor and capital investment. It is estimated that a plantation of ginger, chili and fruit will generate income of about CNY 1,200-2,000 per mu compared to that of CNY 900 of grain plantation. It is an increase of about 33% to 122% a year. It will be easy for the chosen household to offset their economic loss caused by land acquisition and will improve their incomes.

146. For the garden seedlings and fruit tree plantation, training will be provided. For other crop plantation types, training is not desired by APs because most household have such skills already. It is estimated that about 50 households with 80 members need training on garden plant seedling produce and fruit tree care.

(iii) Arranged Jobs

147. About 16% of the APs expressed interest in arranged jobs. In this the project EA and IA committed to give priority to employing APs for the project generated job opportunities. During project implementation, it is estimated around 150 unskilled jobs are available, and during operation 30-50 jobs with about half for road maintenance and half for greening and cleaning. Their preferential treatment shall be implemented according to the provisions of Labor Law. All interested in the jobs will receive training. It is estimated a total of 50 households with 100 interested and available APs will be trained. Table 6-3 summarizes the direct project created job opportunities.

Table 6-3: Project Direct Created Jobs Daily Projected Proposed using Planned Jobs No. Target rate income time workdays (day) (CNY) (Yuan) After the project Earth- moving 50 20 80 80000 starts Landscaping and After the project 50 100 80 400000 other labor works starts Local villagers with priority After the project Logistical support 20 given to land 200 a year 50 200000 starts acquisition During project Road maintenance 30 APs 200 a year 50 300000 operation After the project Total 150 980000 starts Note: The remuneration for above jobs will be paid by days due to the existing financial system and job nature. The annual income of the position is predicted under full workload. Sources: estimation of the design technicians.

(iv) Non-farming employment/business

148. As the land acquisition caused income loss per household is quite limited and agricultural income is no longer their main income sources, about50% of the AH stated that they are willing to spend the land compensation and saved time on non-farming employment or self employment business to offset their income loss. As indicated in Table 6-1, the maximum per AH loss is CNY 659 or per

AP CNY148,7-10 days non-farming employment at a common CNY rate per day could cover their income loss.

149. As discussed in Section 3, over 80% of the households’ main income is from non-farming sources and agricultural source is supplementary. Regarding labor input, four basic models are used in operating their cultivated land: 1) by either female or the old family members left home to carry out agricultural plantation; 2) with the migrant family members who come back home during busy season to help with planting or harvesting, 3) by giving land to relatives to plant without charge, 4) leasing out the land that is conveniently located to irrigation and transport at a price of CNY 200-300 per mu per year. Before year 2000, almost all households adopted the first two models, but now more and more households adopt the last two models to avoid interruption to their non-farming migrant jobs. For female left at home, they are willing to spend their saved time in either handicraft or finding local non-farming jobs. The surveyed households, particularly those with no member or only one member have non- farming working experiences expressed their interest in non-farming jobs stimulated by the project and hoped the project can provide market information and skills about handicraft, local non-farming jobs or business opportunities. It is estimated that about 100 households or 200 people need relevant skill training – this has been provided for in this RP.

(v) Training

150. Based on the above restoration options chosen by the AHs, training programs will be designed to meet the specific needs and preferences of AHs.

151. For the household to choose agricultural restoration measures, agricultural technical training such as gardening plant seedling producing, fruit tree plantation and other cash crop plantation will be provided as required.

152. For the non-farming employment, skill training will included landscaping, house decoration, handicraft production, car repair, and other skills, it is estimated that about 200 AH with 300 members require such training.

153. Additionally, training in the form of farmer-back-farmer training will be organized. The farmers with skills in cash crops could be invited to share experiences and skills to the new growers in the same or other villages. It will be useful to organize study tours to other villages for APs who are interested in planting new cash crops. It will either be organized by PMO directly or by entrusted government agencies such as agriculture bureau, forestry bureau, or women’s federation. In terms of off-farming training, it will be delegated to labor and social insurance bureau.

154. A total of CNY 132,000 (0.5% of the basic costs) has been budgeted in the RP. The affected people shall receive three skill trainings at least before project completion in 2017.

Table 6-4: Summary of Training Plan Agency Year Target Scope Budget responsible Total 500 Gardening plant seedling plantation, fruit PMO, About CNY 132,000 included in project 2015- persons tree or other new cash crop plantation, women’s RP budget in 2016 including handicraft produce, farm machinery, federation, addition to local 300 female motorcycle or other vehicle repair, labor and government fiscal

Agency Year Target Scope Budget responsible and 200 stonecutter, painter, concrete worker, social security funds. male waterproofing worker, masonry worker, bureau, house decoration worker, etc. agriculture and forestry bureaus Source: Field socioeconomic and resettlement survey, July-August 2014 and updated in resettlement DMS

(vi) Endowment insurance

155. All affected households expressed interest in social insurance. However, the endowment insurance for LEF only targets eligible households. The project land acquisition is linear and therefore has very few opportunities to create LEF. However, for a few villages with very limited land, there is such potential. No endowment insurance will be provided if there are no eligible APs. But for general pension, insurance, it is up to the APs to participate on a voluntary basis.

156. To guarantee the vulnerable groups livelihood restoration, MLSS will be made available for officially identified poor. Other insurance options are optional subject to APs voluntary decision.

157. The AP with per capita cultivated land remaining that is less than 0.3 mu after land acquisition are eligible to be included within the endowment insurance, and men over 60 years old and women over 55 years old shall start to receive pension.

158. According to the Supplementary Notice on Land Acquisition and Demolition for Ankang Central City Construction and Land-requisitioned Farmers’ Endowment Insurance (An Zheng Fa No. 15 (2009)) issued by Administration Office of Ankang Municipal People's Government, the process is: a) Target: 1) The person with entitlement of collective farming land contract; 2) the adult (age over 18 years old) with per capita remaining land less than 0.3mu after land acquisition. b) Contribution: Total amount of 50,000 contribution to endowment insurance premiums for 15 years are required. From this, individual AP or their economic organization (village or village group) pay 60% (deduct from land compensation and subsidy) and government pay 40% (of which shared one third each by provincial, prefecture level city and county government). c) Benefit: The person upon reaching their pension age will receive a subsidy of CNY 200 monthly.

6.2 Demolition and Resettlement Plan for Residence

159. The component will involve demolition of 10,244 m2 of housing and will affect 56 households with 238 persons. Field surveys revealed that most of the affected houses are not in good conditions in terms of structure, water, electricity supplies and road accessibility, out of date indoor decoration and surrounding area sanitation. Guided by the principles of the replacement costs and no depreciation, most APs view that the project provides reasonable compensation standard as set out in Section 5.5.

6.2.1 Relocation options

160. In all cases, cash compensation for housing plot, house structures including other structures and attachments based on the replacement costs and allowances will be provided. The Project also provides several options for APs to choose based on their own conditions, which will positively facilitate to restore or improve their living condition smoothly. The major options include:

(i) Cash Compensation without housing lot allocation

a) Cash compensation without new house construction

161. For those households with alternative houses in the city or nearby places or who plan to buy commercial residential house in town and then to give up reconstructing new houses, a written application is required. In addition to cash compensation of housing lot and replacement price of house structure including annex buildings paid in cash to AH directly, an additional resettlement subsidy of CNY 10,000 per person and CNY 10,000 cash reward per person will be granted once the written application is approved.

b) Cash compensation with existing house expanding or rehabilitation

162. Households with an existing house have potential to add more floors, or where the housing lot is big enough to add an annex building, the AP does not need another housing lot. If APs choose this option, a written application is required. In addition to cash compensation of housing lot and house structure including annex buildings, an additional resettlement subsidy of CNY 10,000 per person and CNY 10,000 cash reward per person will be granted once the written application is approved.

c) Reconstruct new house with purchase housing lot by Aps

163. For those who choose to construct new houses by themselves and purchase housing lot by themselves, or they use their existing housing land, the project will compensate their housing lot and structures according to the Project standards. After several discussions with AHs, it was agreed that the current compensation standard is generally enough to purchase similar condition housing lot in the same area. If an AH purchases a housing lot cheaper than the compensation standard, the savings belongs to the AH. If a household chooses to reconstruct their new house in a better place (e.g. closer to town center area or a wider space) voluntarily, they will need to pay the additional costs by themselves.

(ii) Concentrated resettlement in New Rural Village Development Plan

164. For those who are willing to purchase a new house in residential area under a new rural village development program, cash compensation of housing lot and replacement price will be paid directly to AHs. In addition, discount has been negotiated and committed. Both location and quality of the house will be better than the proposed demolition houses in general. The price committed is based on the construction costs, higher than the compensation standard but lower than the commercial residential house. The surveyed AHs will continue to discuss the details in terms of concentrated resettlement sites selection.

(iii) Individual reconstruction on the government allocated housing site

165. If the households have difficulties finding a housing lot, but still want to reconstruct their new houses, the town government has committed to provide the AHs with housing lots acceptable to them. The price will not exceed the compensation standard regardless of actual costs. There will be no additional cost to the AHs.

166. The provided housing lot can either be located in a concentrated area or a single housing lot. In either case, water, electricity supply and road will be made available, and the land leveling will be done by the project. The design fee also will be covered by the project.

167. In order to meet the requirements of AHs and guarantee their benefit, the local government has carried out several rounds of consultations to collect their opinions. The final selection of the relocation site and plot is expected to be done before the end of May 2016.

168. Table 6-5 summarizes the preferred options of the AHs in each town/township.

Table 6-5: Resettlement Options of HD affected Households No. of resettled HH by town/township Resettlement Description Zao Duan Yanba Yinghu Total yang jiahe 1.1 Cash compensation and no need of house 0 0 1 0 1 reconstruction Add one more floor on 1.2 Cash compensation top of bungalow or then expansion of 0 0 4 0 4 annex a building to remaining/other house bungalow 1. Cash AHs has not live in the Compensation village but keep house with no 1.3 Cash compensation relocation and “Hukou” there, then purchase residential prefer to use the 0 0 1 0 1 housing lot house in city/town compensation to allocation purchase house in needed city/town AH be able to purchase 1.4 Compensation then housing plot by reconstruction by themselves to 14 4 4 0 22 purchasing housing lot by reconstruct their themselves houses Sub-total 14 4 10 0 28 2Cash Government reconstruct houses in compensation 2.1 Duanjiahe town with Duanjiahe town site 0 0 9 15 24 resettlement site Concentrated and then allocation resettlement house to AH Government allocation housing lot in a 3.1 Allocation of housing concentrated site to site with unified 0 0 0 2 2 individual AH and each 3Cash construction AH construct their own compensation house with needs of Government allocation housing site housing lot individually allocation 3.2 Allocation housing lot subject to the housing and re-construction 0 0 0 2 2 site availability and house individually each AH construct their own house

No. of resettled HH by town/township Resettlement Description Zao Duan Yanba Yinghu Total yang jiahe Sub-total 0 0 9 19 28 Total 14 4 19 19 56 Source: Field Socioeconomic and resettlement survey in July- August 2014.

169. All affected villages will actively participate in arrangements and negotiation with town government.

6.2.2 Concentrated resettlement site

170. According to the preliminary decision of Duanjiahe Town, a resettlement site will be built in the Town, which will be integrated into new rural village development program. It is anticipated that this program will be determined before the end of May 2016.

171. The price for each house type is based on the location, area, decoration and structural assessment. It is estimated that the price will be CNY1000-1800/m2. The resettlement households can choose different house types and sizes according to their economic condition and housing requirement. As in all cases with cash compensation for housing land, house and its annex buildings, the selection of type and size in each site is fully voluntary and depends on each household. If the chosen type and size is smaller than their originals, the saving belongs to APs, but if the selection is larger, the AH needs to pay the additional cost by themselves. As the new houses are much better than the original houses in terms of location and construction quality, the price is higher than the compensation standard. All APs view that is reasonable and acceptable. In any case, if the APs do not satisfy the concentrated relocation option, individual relocation by allocated housing site in a similar area is available.

6.2.3 Other subsidy policy

172. The affected households will be entitled the following rights and interests: (i) Preferential labor training; (ii) Benefits from the social security policy in project implementation area including qualifying personnel into Endowment Insurance LEF in Ankang; and (iii) Access to the suitable jobs created by the project directly and indirectly, including jobs under project implantation agencies and jobs relating to enterprises attracted into the project area.

6.3 Livelihood Restoration for Vulnerable Groups

173. A support fund for vulnerable groups (192 HHs) of CNY 252,000 (1% of basic resettlement costs) will be established under the project to support vulnerable groups affected by the project. The main affected vulnerable groups are the poor, single parent family and women-led family, Wubao (five- guarantee households), households affected by disability and illness. A series of additional measures have been put in place to help them in livelihood restoration and relocation restoration.

(i) Giving priority to vulnerable groups in resettlement measures

a) Land acquisition affected households:

 Priorities will be given in obtaining replacement land through allocation of reserved land, or through land transfer if the vulnerable AH chooses to restore their income through agricultural measures;  The households with a labor force will be given priority in skill training and priorities given in provision of arranged jobs by the project and local government. Eliminating zero employment of poor households (with a labor force) is the target of government poverty alleviation program, it will also be the target of this project;  Include all eligible AH into LEF endowment insurance. The new rural endowment insurance will be an optimal option for the AH on a voluntary basis; and  Provide preference loan to the significantly affected households if necessary in developing non-farming business, such as purchasing vehicles for transport business, operating repair shops, developing other income generating business.

b) House demolition affected households:  Priorities will be given to vulnerable group to choose resettlement locations;  If the vulnerable households who choose to reconstruct new house by themselves, priority will be given in arranging relocation housing land. In addition, a one-off for poor extra subsidy support payment of CNY 5,000 will be provided;  A one-off extra advance moving reward of CNY 3,000 will also be provided to vulnerable households if they meet the advance moving criteria; and  Minimum size housing will be guaranteed for the poor.

(ii) Including eligible vulnerable groups in MLSS as a priority

174. According to the MLSS policy of Hanbin District for rural residence, eligible vulnerable groups affected by the Project will be included in the MLSS in time and receive MLSS benefits so as to ensure that the per capita net income of each rural AH is not less than CNY 2,500 a year and the per capita income of each urban AH is not less than CNY 209/month.

(iii) Providing rural medical assistance to eligible vulnerable groups

175. Rural medical assistance will be provided to eligible vulnerable groups to solve their difficulty in receiving medical care. Hanbin District and Xunyang County Government will provide medical assistance for the rural residents in line with the policies.

6.4 Women’s Development Measures

176. During the resettlement process, women’s rights and interests will be fully protected, and women will play an important role in socioeconomic and resettlement activities.

177. Ensuring women’s equal rights: During the preparation of RP, separate meetings were held with female representatives of APs and the Women Federation Association in order to allow women to express their needs, expectations and suggestions on resettlement and restorations measures. Most of them including women-headed households stressed their concerns, namely: (i) receiving compensation on time; (ii) selection of resettlement mode and housing land, (iii) improving agricultural production with limited farmland; and (iii) operating small businesses at home or at agricultural product fairs or markets

with either the compensation or small loan which will be provided by the project. Measures to address these concerns have been included in the RP.

178. Training priorities to women with preferential training methods and content: As women have relatively lower education levels and experience generated in migrant jobs, they have less available employment and income generation choices than men. Training is particularly crucial to them in developing new income sources given to opportunity generated from the industrialization and urbanization development. They hope to have not only agricultural skill training on horticulture, fruit tree caring, but also non-farming skills with handicraft, urban employment skills such as hotels, restaurants, shopping malls, and skills working in factories e.g. garment factories. Their training needs have been designed in this RP and training budget has been reserved (refer to Section 6.1). The project will ensure that 40%-60% training opportunities are provided for the affected females. The Women’s Federation representatives together with the employer agencies will further consult with women to detail the training design on methods and contents.

179. Providing and assisting women to apply for the project-generated job opportunities: For those who are interested in participating in project job opportunities, Women’s Federation staff at the township and village levels will be responsible to inform them of job opportunities in advance and facilitate women to apply for the employment. Basic skill on landscaping and other relevant skill training will be provided prior to recruitment.

6.5 Recovery Plan of Ground Attachments and Special Facilities

180. The special facilities affected by the project are mainly power lines, telecommunication lines, etc. To minimize disruption to residents, detailed surveys have been done and the budget has been included in the RP budget. The relevant line agencies will be responsible for detailed relocation planning and rebuilding electric power and communication facilities.

7 Institutional Arrangements

7.1 Institutional Arrangements

181. Since resettlement is a very comprehensive task that needs the assistance and cooperation of various departments, the relevant departments shall participate in and support resettlement implementation. Each affected township or village has one or two chief leaders responsible for resettlement. The agencies responsible for the LA and the HD in the Project are:

 Shaanxi Provincial (Communication Department ADB Loan) Project Leading Group (SPPLG)  Shaanxi Provincial (Communication Department ADB Loan) Project Management Office (SPPMO)  Hanbin District and Xunyang County (ADB Loan Road) Project Leading Group (HXPLG)  Hanbin District ( ADB Loan Road) Project Management Office (HPMO)  Hanbin District (ADB Loan Road) Project Resettlement Office (HPRO)  Project town/township governments (PTG)  Village committees/residents committee (VC/RC)  Project design Institute (DI)  External independent monitoring and evaluation agency  Other departments: Land Resources Bureau (LRB), LA and Resettlement Office, Women’s Federation, Labor and Social Security Bureau.

182. The Organizational Chart shows in Figure 7-1.

Figure 7-1: Project Resettlement Organizations

7.2 Organizational Responsibility

(i) Shaanxi Provincial Project Leading Group (SPPLG) and Its Office (SPPO)

183. SPPLG is the leading agency responsible comprehensively for the overall deployment of the Project and solving major issues. The group will include Comprehensive Planning Division and Road Management Division, and lead by a deputy director of Shaanxi Provincial Transport Department.

184. SPPMO in Foreign Funds Project Office (FFPO) is the working body of SPPLG as coordinating agency in charge of applying for ADB loan, coordinating the formulation and implementation of RP, monitoring and evaluation of the RP implementation, including funds flow of compensation of LA and HD.

(ii) Ankang City Leading Group (ACPLG) and Project Management Office (APMO)

185. Ankang City Government is the implementing agency of this Project, and the project leading group consists of heads from each relevant bureaus, including transport bureau, land and resources bureau, resettlement bureau, development and reform bureau, etc. The HPMO is the working body of the ACPLG set up in Hanbin District Transport Bureau, responsible for the project management, coordination, supervision, direction, quality assurance and annual planning, and the follow-up monitoring of the implementation, reporting to SPPMO regularly. The main responsibilities in resettlement include organizing the resettlement work of the project, developing the local policy on resettlement activities, coordinating relations among resettlement agencies at all levels, coordinating the work of the bureaus concerned at the preparation and implementation stages, and making decisions and consultation on major issues arising from construction and resettlement.

(iii) Hanbin Project Resettlement Office (HPRO)

186. The HPRO, consisting of 4 persons in Hanbin PMO, responsible for identifying and confirming the quantity of land acquisition and house demolition, special facilities and ground attachments, conducting the DMS and saving data; assisting in preparing the RP and implementing RP; selecting resettlement officials for operational training; organizing public consultation, and communicating resettlement policies; directing, coordinating and supervising LA and resettlement activities and progress; disbursing resettlement costs according to the agreement and handling grievances of APs; assisting and supervising the affected villages carry out economic rehabilitation plans and ensuring the income restoration of the affected people; carrying out internal monitoring, preparing internal monitoring reports and reporting to Hanbin PMO.

(iv) Town/township Government

187. The town/township resettlement offices, headed by each Town/township leader are comprised of key officials of the land and resources office, police office, civil affairs office and villages. The main responsibilities are:  Participating in the survey of the Project, and assisting the preparation of the RP.  Organizing public participation, and communicating the resettlement policies;  Implementing, inspecting, monitoring and recording all resettlement activities within the town;  Settling the house demolition and reconstruction;  Responsible for the disbursement and management of land compensation fees;  Supervision of LA, HD and house restoration;  Reporting LA, HD and resettlement information to the HPMO; and  Coordinating and handling conflicts and issues arising from its work.

(v) Village committees/Residential Committees and village groups

188. The resettlement working team of a village committee or village group comprises its key community leaders and representatives of APs and with authorization of villagers’ convention. Its main responsibilities are:

 Participating in the socioeconomic survey and DMS;

 Assistance in preparing the Relocation and Resettlement Plan;  Organizing public consultation, and communicating the policies on LA and HD;  Organizing village meetings in discussing the proportion of compensation distribution to APs and supervision of the use of reserved funds in a village if any;  To choose resettlement sites and distribute housing land for relocated families; Helping APs to get house construction approvals;  Organizing the implementation of agricultural (including reserved land  distribution) and nonagricultural resettlement activities;  Reporting the APs’ opinions and suggestions to the relevant authorities;  Providing assistance to relocated households with difficulties, particularly the vulnerable families;  Supervising land acquisition, housing and ancillary facilities demolishing and reconstruction;  Reporting the progress in land acquisition and resettlement; and  Preparing clearance letter to confirm the facility and infrastructure restored and meet their requirement.

(vi) Agency undertaking RP formulation

189. Shaanxi Academy of Social Sciences has been entrusted by SPPMO to formulate the RP. The responsibilities include: (i) formulating the RP and (ii) providing training to the RP implementation staff of PMO in provincial, county and township level.

(vii) Internal supervision agency

190. Hanbin Project Management Office (HPMO) set up an internal supervision office for land acquisition and resettlement, consisting of 2 persons. The duty of the office is to guarantee all the land acquisition and resettlement officers can fulfill their tasks, carry out the requirements of the RP, and guarantee all the affected people can get their rights and interests.

(viii) Design Institute

191. At the planning and design stage, it will survey the physical indicators of LA and HD, environmental capacity, usable resources, etc. accurately, and assist the governments in the Project area in developing resettlement programs, preparing budgetary investment estimates for compensation for LA and HD, and preparing the relevant drawings.

192. At the implementation stage, it will submit the design documents, technical specifications, drawings and notices to the owner, make design disclosure to the PMOs of all levels.

(ix) External independent monitoring and evaluation agency

193. The owner will invite qualified M&E institutes as external M&E agency. The main responsibility includes:

 Monitoring all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the effectiveness of resettlement and the social

adaptability of the APs, including women and vulnerable APs, and submitting M&E reports to SPPMO and ADB semi-annually;  Providing technical advice to the Resettlement Office in data collection and processing.  Follow the TOR for external M&E (see appendix 3).

7.3 Staffing and Equipment

7.3.1 Staffing

194. In order to ensure the successful implementation of the RP, all resettlement agencies of the project have been provided full-time staff, and an efficient communication channel has been established.

7.3.2 Equipment

195. All resettlement agencies of the Project have been provided basic office, transport and communication equipment, including desks and chairs, PCs, printers, telephones, facsimile machines and vehicles.

7.3.3 Organizational Training Program

196. In order to ensure the successful implementation of the resettlement work, the resettlement staff will be provided training. As the SPPMO has implemented many ADB projects,6 they are familiar with both ADB and PRC RP policy and procedures, and therefore do not need much training. In contrast, the staff in county PRO, TRO and village levels are experienced with PRC resettlement policies and procedures, but are not familiar with ADB policy and procedures. Therefore the training will focus on county level and lower.

197. A staff training and human resources development system for the county, township, and village level resettlement agencies will be established. Training will be conducted in such forms as expert workshop, skills training course, visiting tour and on-site training.

198. The scope of training includes  ADB resettlement policies,  Differences between ADB and PRC polices,  Resettlement implementation planning and management,  Key points require attention during RP implementation, and RP implementation M&E.

199. The training budget for resettlement agencies is CNY 50,000, which has been included in the technical training budget. Detail training design will be formulated during RP implementation planning phase.

6 i.e. ADB 30424-013，Shaanxi Roads Development, 2001, ADB 46042-002, Shaanxi Trunk Roads Improvement Project, 2013. 60

8 Resettlement Budget

8.1 Resettlement Budget

200. Based on updated prices in October 2015, the estimated resettlement costs of components covered by this RP were CNY 34.426 million, including permanent LA costs of CNY 15.214 million, temporary land occupation costs of 0.061million, compensation fees of house demolition CNY 9.02 million and CNY 0.765 million of compensation fees for infrastructure and ground attachments, special facilities of CNY 0.2 million, special supporting funds for vulnerable groups CNY 0.252 million, technical training CNY 0.126 million, RP preparation and M&E CNY 0.378 million, taxes and management fee of CNY5.28million and contingencies of CNY 3.13 million. See Table 8-1 for details.

Table 8-1: Resettlement Budget Amount Proportion No. Budget Item Unit Standard Quantity (unit) (CNY’0000) (%) Total of 1.1-1.5 1 Basic resettlement costs 2,526.0 73.3 CNY’0000 items 1.1 Permanent land acquisition CNY’0000 1,521.4 44.2 1.1.1 Cultivated land mu 54,000 132.54 715.7 20.06 1.1.2 Homestead mu 48,600 20.8 101.0 2.54 1.1.3 Forest land mu 22,500 306.48 689.6 18.34 1.1.4 Subsidies for young plants CNY/mu 1,137 132.54 15.1 0.42 1.2 Temporary land occupation CNY/mu 1,300 46.61 6.1 0.17 Compensation fee for housing 1.3 902.0 26.2 demolition CNY’0000 1.3.1 Rural brick-concrete structure ㎡ 1,000 7,522 752.2 24.94 1.3.2 Rural brick-wood structure ㎡ 520 810 42.1 1.39 1.3.3 Rural earth-wood structure ㎡ 400 1570 62.8 2.00 1.3.4 Makeshift house ㎡ 200 342 6.8 0.12 1.3.5 Transition costs for relocation CNY/ household 300×6 56 10.1 0.30 1.3.6 Moving subsidy CNY/ household 1000 56 5.6 0.16 1.3.7 Early moving reward CNY/ household 4000 56 22.4 0.66 Compensation for ground ancillary 1.4 76.5 2.2 facilities CNY’0000 1.4.1 Pens for pigs, sheep and cows CNY/m2 220 131 2.9 0.08 1.4.2 Brick enclosure CNY/m2 400 410 16.4 0.46 1.4.3 Toilet Brick single/ each 600 10 0.6 0.02 1.4.4 Tomb Brick single (CNY/tomb) 1,200 31 3.7 0.10 1.4.5 Water well CNY/m3 400 13 6.5 0.18 1.4.6 Fruit tree Fruiting (CNY/tree) 100 2799 28.0 0.78 DBH of 5-10cm 1.4.7 Timber tree 40 4599 18.4 0.51 (CNY/tree) Compensation fee for special-purpose 1.5 CNY’0000 20 0.58 facilities 2 Support fund for vulnerable groups CNY’0000 1% of basic fee 192 HH 25.2 0.73

Amount Proportion No. Budget Item Unit Standard Quantity (unit) (CNY’0000) (%) Relocation monitoring and evaluation 1.5% of basic 3 CNY’0000 37.8 1.1 fee fee CNY’0000 0.5% of basic 3.1 Fee for formulation of relocation plan 12.6 0.37 fee) Monitoring and Evaluation cost for CNY’0000 1% of basic 3.2 25.2 0.74 relocation and resettlement fee 4 Relocation training cost CNY’0000 0.5% of basic fee) 12.6 0.37 5 Taxes related to land acquisition CNY’0000 528 15.3 5.1 Land acquisition management fee CNY/mu (2.8% of basic fee) 70.7 2.07 5.2 Cultivated land occupation tax CNY/mu 14666.7 132.54 194.4 5.45 5.3 Cultivated land reclamation fee CNY/mu 10500 132.54 139.2 3.90 Paid use fee for newly-added CNY/mu 5.4 9333.38 132.54 123.7 3.47 construction land CNY’0000 10% of 1-5 6 Contingencies 313 9.09 items 2~6 Subtotal CNY’0000 916.6 26.6 7 Total CNY’0000 3442.6 100

8.2 Resettlement investment plan and source of fund

201. The source of resettlement funds comes from local financial counterpart funds and domestic loans. Before or during the construction phase, the investment plan will be implemented in stages in order to not affect the production and livelihood of the affected households.

Table 8-2: Resettlement Investment Plan Year 2016 2017 Total Amount of investment (CNY 10,000) 1,721 1,721 3,442 Proportion (%) 50 50 100

8.3 Management and Disbursement of Resettlement Funds

202. Land compensation fees and resettlement subsidies should be used in full consultation with the APs; young crop fees are paid directly to the affected persons; compensation fees for infrastructure and attachments are paid to the affected entities or individuals.

203. To ensure that the resettlement funds are available both timely and completely, and the APs’ production, livelihoods and income are restored, the following measures will be taken:

(i) All costs related to this RP shall be included in the total budget of the project. (ii) Land compensation fees and resettlement subsidies shall be fully paid up before land acquisition, so as to ensure that all affected people are properly resettled. (iii) For AH who chooses cash compensation, 50% of compensation fees for HD shall be paid to the APs upon execution of the HD compensation agreement, and the balance shall be paid upon house hand over. For AH who choose unified relocation option, balance of the compensation by deduction of the new house price will be paid at one time after the agreement is signed. For AHs who choose reconstruction of houses by themselves, new housing plot will be allocated by village committee or township government when the agreement is signed, and all compensation should be paid when the AH hands over or vacates the house. If a plot/unit is provided, that compensation can be deducted. The minimum transition allowance should also be provided at handover/vacation of the house, and transition allowance should also be provided. (iv) To ensure the smooth implementation of land acquisition, relocation and resettlement, the finance and supervision institutions at all levels will be established to ensure that all funds will be paid both timely and completely. (v) The resettlement costs may be increased due to the increase of the compensation standards and price inflation, but the IA will ensure that compensation fees are fully paid.

204. Figure 8-1 shows the resettlement funds distribution flow.

Figure 8-1: Resettlement Funds Flow of Distribution

8.4 Approval of Budget Increase

205. The project implementation unit has the authority to adjust the budget among categories and the use of contingencies within the budget. Costs exceeding total RP budget should be reported to Shaanxi Provincial Development and Reform Commission and Financial Department of Shaanxi Province by the project office and the increase of the budget subject to the approval. The whole process shall not be more than one month.

9 Public Participation and Grievance Redress

9.1 Public Participation

206. According to relevant policies and regulations of ADB, the PRC, Shaanxi Province Transport Department and Hanbin District, it is required to conduct public participation at the preparation and implementation stages in order to protect the lawful rights and interests of the APs, reduce grievances and disputes, and realize the resettlement objectives. It is necessary to develop a sound framework and implementation rules, preparing an effective RP, and organizing proper implementation.

9.1.1 Stakeholder identification and information disclosure

207. The main stakeholders refer to the groups directly affected by the project, including: (1) those suffering land loss and property loss; (2) the villages to be benefited in the project area; (3) all organizations and companies directly participating in project construction and operation, such as construction contractor.

208. The indirect stakeholders include indirect beneficiaries, such as suppliers of building materials, government organizations participating in the project activities as well as the people who are interested in the project and also participate in the relevant project activities in the process of land acquisition and demolition.

209. Early stage information disclosure will be through agencies involved in project design and administrative line agencies at various levels. The main content includes project rationale, scope, road standard, alignment selection, and potential affected people by land acquisition and house demolition. During the PPTA phase, information disclosure occurred mainly through project management office at provincial and county level, and survey teams of RP, poverty and social analysis and environment assessment. Key information including resettlement principles and compensation standard, resettlement options and assistant measures, and up to date negotiation process and results. Future information disclosure will be conducted through information booklet distribution and website, village bulletins and public media as well as through public consultation. Key information related to compensation standard, implementation schedules, resettlement budget and funds flow, organizational responsibility and contact persons, grievance redress, and internal and external M&E will be included in the booklet and distributed to all affected households. Project implementation progress will be disclosed to the APs and posted in village bulletins. The draft and final RPs will be posted on ADB website.

9.1.2 Participation during project preparation

210. At the feasibility study, preliminary design, PPTA stage and resettlement DMS, intensive consultation with stakeholders has been conducted with focus on project scope and component, the alignment selection/shaping, design standards, and alternatives of reducing affected populations.

211. During the PPTA, surveys were undertaken from April to August 2014. A total of 163 households (123 samples of potential affected households along the alignment corridor in RP development, 40 households from wider area of the project in poverty and social analysis from 10 villages were surveyed. In addition, a total of 20 key informant interviews, 20 FGDs and 5 consultation workshops have been held with women, poor, elderly and village representatives in the project area and a number of key informant interviews were held with various bureaus. Over 2000 person times

were interviewed/surveyed or consulted in the process. Participants included individual villagers, village leaders, staff of government agencies such as the Resettlement Bureau, Transport Bureau, Tourism Bureau, Development and Reform Bureau, business owners and employees. The assessments, surveys and discussions provided the quantitative and qualitative materials that were used to prepare the RP, and other documents to comply with both ADB and PRC policy requirements.

212. During October and November 2015, a resettlement detailed measurement survey was carried out according to the detailed design. Hanbin PMO coordinated land resource bureaus and related township governments to measure the land, structures and other resettlement impacts. During the survey, three consultation workshops have been carried out. The opinions and concerns regarding project schemes, resettlement schemes and compensation policies have been collected, and integrated into this updated RP.

213. Methods and tools used include (i) field visits to collect basic information on the project impact from project beneficiaries and APs; (ii) household survey to understand family situations, livelihood status and living conditions; (iii) focus group discussion to learn expectations and requirements of affected people; (iv) interviews with representatives of households, villages or communities to find potential impacts, coping strategies and demands for support; (iv) interviews with government agencies, development organizations and industrial parks to identify existing programs that can help the poor to take advantages of the project benefits, and (v) workshops were held to collect feedback on the draft RP.

214. The consultation during project preparation shows in Table 9-1 for details.

215. A resettlement information booklet (RIB), as shown in Appendix 2, was distributed in January 2015.

Table 9-1: Public Participation during Project Preparation Time Organizer Participants and number Objective Issues, comments and suggestions Engineers, government line agencies officials, traffic  Introducing project background and purpose, Design institute management experts and Project feasibility study, updating progress, and PMO of officials, affected county and on-site inspection of Seeking alternatives to minimize cultivated 2011.4~2013.12 Foreign Capital towns/townships government alignment selection,  land acquisition and house relocation Division of officials, villager leaders, APs, preliminary assessment SPTD etc. of project impact  Seeking alternatives to maximize beneficiary Total 982 participants with villages and APs. female 510  Assisting project impact survey  APs expressed strong needs of the project.  Comments and suggestions on project scope and route adjustment,  Suggestions on relocation options, compensation modes and standard. Cash Design institute, Relevant government line compensation becomes the pre-condition RP and SPA agencies, affected Relocation plan suggested by APs as formulating other survey team of town/township government, preparation, options. 2014.2~2014.5 SASS, PMO of village leaders and villager socioeconomic survey  Assisting socioeconomic survey on individual Foreign Capital representatives of resettlement impact affected households, identification of Division of Total 1280 participants with restoration options preferred, assistance SPTD female 650 measures needed,  Identification of vulnerable groups and significant affected households and their specific needs in livelihood restoration,  Formulating special assistance measures in supporting vulnerable groups and significant affected households. RP and SPA Relevant government line survey team of agency officials, Affected  Back and forth negotiating compensation SASS, PMO of town/township and village options and livelihood restoration options with 2014.6~2014.7 Foreign Capital leaders and APs RP preparation project EA and IA, Division of representatives Drafting RP SPTD, Total 700 participants with  HPMO female 420 HPMO, RP and Affected towns and villages Consultation and  Information disclosure of finalized land 2014.7~2014.7 SPA survey leaders and APs survey on resettlement compensation standard team of SASS Total 1300 participants with option selection of  Compensation allocation from village to 68

Time Organizer Participants and number Objective Issues, comments and suggestions female 680 individual HH  AHs. The compensation allocation from village Finalizing final draft of to individual APs depends on the size of land RP acquisition, availability of village reserved land to be allocated to AH and the previous allocation proportion of other project caused land acquisition in the same village. E.g. if the acquired land size is limited and the village have enough reserved land to be allocated to the AHs, the compensation will be then reserved in the village to be used to village infrastructure maintenance or improvement, otherwise the compensation will be distributed to AHs in 100% or a proportion in consistence with the previous project settled in the village. Therefore, the compensation distribution from village to individual household depends on each village. The affected villages will discuss further when the DMS has been done.  Individual household income restoration option selected and assistance needed  Formulating relocation options and incorporating AHs’ opinions and suggestions,  Initial Individual relocation plan of house demolition affected households  Training needs assessment and initial training program formulation  Estimation of project created job directly and indirectly. Arrangement of job post method.  Eligibility of APs towards LEF insurance scheme and voluntary participation of New Rural Social Insurance program.  Initial relocation site selection by individual household  Suggestions of house demolition APs on form of housing construction and infrastructure construction  Women’s unique role in resettlement and specific needs  Prepare final draft of RP 69

Time Organizer Participants and number Objective Issues, comments and suggestions Disclosure LA and HD impact, compensation and January 2015 HPMO APs, village groups RIB distribution restoration plans and complain channels HPMO, HDRC, Disclosure of LA and HD impacts, compensation LRB, and CTB Notice of land rates, and resettlement method, etc. July 2015 All APs and town acquisition governments SPPMO, Disclosure LA and HD impact, compensation and Government line agencies and Disclosure the first Sep 2015 HPMO and restoration plans and complain channels APs draft RP ADB HPMO, HDRC, Confirmation and disclosure of resettlement cost Disclosure of LRB, and CTB and payment method Oct 2015 All APs compensation and and town resettlement schemes governments Find out anything omitted to determine the final HPMO, HDRC, impacts LRB, and CTB Oct ~Nov 2015 All APs Resettlement DMS Preparing a and town detailed list of lost land and properties governments Preparing the sample compensation agreement HPMO, HDRC, Confirmation of Discussion of final resettlement plan and LRB, and CTB livelihood restoration compensation use plan through villagers' meetings Oct ~Nov 2015 All APs and town plan and its governments implementation *HPMO-Hanbin Project Management office, SPPMO=Shaanxi Provincial Project Management office, RIB=Resettlement information booklet, RP=Resettlement Plan, HD=House demolition, LA=Land acquisition, APs=Affected persons, SPA=Social and Poverty Assessment, SPTD=Shaanxi Transport Department, SASS=Shaanxi Academy of Social Science.

9.1.3 Participation plan during implementation 216. Along with project implementation, the IA will conduct further public consultation and participation. The arrangement of public consultation and participation is shown in Table 9-2.

Table 9-2: Project Public Participation Scheme Objectives Approach Time Agencies Participant Topic Submission of updated RP to ADB for review and approval prior to start the LAR activities and Updating and SPPMO, HPMO approval of civil works approval of Website March 2016 All APs and ADB Contract awards. After final RP ADB approval, the updated RP will also be posted on ADB’s website for disclosure Hosing site Land and selection and Villagers Three months Resources All APs by Agreement signing allocation of Meeting before HD Bureau, town and HD plots/units village cadres Labor Security Livelihood Villagers Discussion of training 2016.3~2016.12 Bureau, town and All APs training plan meetings needs village cadres 1) Resettlement progress and impacts Villager Town and village 2) Payment of Monitoring participation 2016.3~2018.12 All APs cadres compensation meeting 3) Information disclosure 4) livelihood restoration

9.1.4 Adaptation of RP based on public opinions 217. According to public consultation some reasonable opinions and suggestions of the affected people are included in the resettlement plan as following: (i) The views and concerns towards the project have been included in the RP. E.g. early commence of the project and short construction period. (ii) All resettlement options with cash compensation as pre-condition, which allow more flexible options for APs to choose based on their own situation. (iii) Based on the survey results, consultations and negotiation with local government has been carried out. The compensation standard for housing demolition was then updated based on the current local market replacement price. The updated compensation standard has been greatly increased compared with the existing rate of the government documents which is out of the date viewed by the APs. This consultation and negotiation results ensured that the project will meet the requirement of full replacement price of house relocation and will benefit all the AHs. (iv) Resettlement site options: Selection of relocation site is under discussion. APs will continue to provide opinion during the implementation.

9.2 Grievances and Redress

218. To ensure rehabilitation and improvement of the affected persons’ production and livelihood and living conditions, the provincial and county PMO closely consulted with the affected persons to reduce complaints. A mechanism is set up to provide AP with opportunities to complain and to solve problems.

9.2.1 Grievances

219. Contents of grievances include any aspect of resettlement, for example, house compensation, quantity of assets, land compensation, selection of housing sites, and income loss, relocation fees and compensations during house rebuilding, etc.

9.2.2 Grievance Procedures

220. The public participation is always encouraged in the process of compiling and implementing the RP. No substantial dispute is expected to arise. However, there may be some unforeseeable problems that occur in the process. In order to solve such potential problems effectively and ensure the project construction and land acquisition to be carried out successfully, a transparent and effective appeal channel has been set up.

221. The grievance procedures will be operative throughout the entire construction period so that they can be used by villagers to deal with problems relating to infrastructure rehabilitation, such as the reconstruction of irrigation networks, the positioning and design of drainage culverts, local road access, the use of temporary land, etc. In this way villagers will have an effective procedure to bring these matters to the attention of IA and the contractors, as well as a forum, for their timely resolution. As an additional measure, village leaders will be provided with a name and contact point (e.g. Telephone number), to whom they can raise matters relating to the road construction as and when they arise.

222. The basic procedure of the grievance solution is: APs-Village committees- Township or town government- county resettlement office-Provincial PMO and TRO.

223. The basic grievance redress system is as follows: (i) Stage 1: If APs have any dissatisfaction with RP or implementation, they may report to the villagers’ committee. The villagers’ committee or the APs may directly appeal to the resettlement offices for negotiated resolution or put forward an oral or written grievance. The resettlement offices record the complaints and resolve the problems within two weeks after the receipt of the complaints if the grievance is oral. (ii) Stage 2: If the APs who lodge the complaints are not satisfied with the results of the Stage 1, they may lodge a grievance to Hanbin District PMO and TRO, after receiving the decision. The latter will make resolution with two weeks. (iii) Stage 3: If the persons who lodge the complaints are still not satisfied, they may after receiving the decision, lodge complaints to the SPPMO for arbitration. The latter will make arbitration decision within three weeks. (iv) Stage 4: If the persons are still dissatisfied with the decision of the Stage 3, they may, after receiving the arbitration decision, appeal to administrative setups step by step (township office, county office, authorities of letters and calls, administrative supervision, disciplinary inspection and procurement department) according to Administrative Procedure law.

224. The complaints and appeal procedures have been conveyed to APs through public meetings and other information dissemination procedures such as village board, to ensure they fully understand their rights and the mechanisms for complaint and appeal. Any complaints raised by APs and resolutions must be registered in written form by resettlement office that receives these grievances.

225. At any point, if the appellant is dissatisfied, he/she may bring a suit in a civil court in accordance with the Civil Procedure Law of the PRC.

226. The APs may also express grievance to the external monitoring agency, who would then report it to Hanbin District resettlement office, Xunyang Land and Resource Bureau, and SPPMO. Alternatively, the APs may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB’s safeguard policy, the APs may appeal directly to ADB in accordance with ADB’s Accountability Mechanism (2012).7

227. All the grievances received, oral or written will be recorded and their redress will be recorded as well and these will be made available to the external monitoring agency or ADB review missions on request. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. During the whole construction period of the Project, these appeal procedures shall remain effective to ensure that the APs can use them to address relevant issues. The above grievance redress system have been communicated to the APs at a meeting or through the RIB, so that the APs know their right of appeal.

9.2.3 Grievance Redress Principle

228. The resettlement offices at each level must perform on site investigations on the complaints from the people and closely consult with them on their opinions before providing practical and justified redress opinions in accordance with the principles and standards specified in national laws and ADB’s involuntary resettlement safeguards principles enshrined in the RP. The complaints that could not be solved must be timely submitted to the higher resettlement department, and the RO at each level are required to provide assistance on investigations.

9.2.4 Contents and Form of Reply to Complaints

a.) Contents  Description of the complainants’ grievance;  Results of investigations;  National policies, and the ADB’s principles and standards specified in RP;  Resolution and its basis;  The complainant has the rights to appeal to the higher resettlement department or to the courts. b.) Form of Reply  For complaint concerning individual case, the reply can be directly delivered to the complainant in written form.  For complaints frequently addressed, notify the local village or sub-village by convening village meeting or issuing documents.

7 For further information, see http://www.adb.org/Accountability-Mechanism/default.asp. 73

9.2.5 Report of Grievance

229. During implementation of the RP, the resettlement units shall make proper records and management of the complaints and solutions, and report them to the provincial PMO in written form monthly.

10 Implementation Plan of Relocation and Resettlement

10.1 Principle for Implementation of Relocation and Resettlement

230. The schedule for land acquisition and resettlement will be integrated with the schedule of Project construction. The basic principles for RP implementation are as follows:

 LA and HD should be completed at least 3 months prior to the commencement of construction, and the starting time will be determined as necessary for LA, HD and resettlement. There will no commencement of related civil works until all compensation is paid and all livelihood rehabilitation measures are in place.  During resettlement, the APs shall have opportunities to participate in the Project. Before the commencement of LA and HD, the scope of the LA will be disclosed, the RIB distributed and public participation activities conducted properly.  All compensation fees will be paid to the affected proprietors directly and fully within 3 months of approval of the compensation and resettlement program for LA. No entity or individual should use such compensation fees on their behalf, nor should such compensation fees be discounted for any reason.

10.2 RP Implementation Schedule 231. The general resettlement schedule of the Project has been drafted based on the progress of project construction, LA and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress.

Table 10-1: Schedule of Relocation and Resettlement Activities Responsible No. Resettlement task Target Time Remark unit 1 Information disclosure FFPO,Hanbin Four towns and 14 1.1 RIB PMO, and 4 town Before July 2015 Completed villages governments Disclosure the draft RP on ADB FFPO, Hanbin Before September 1st 1.2 completed website PMO and ADB 2015 2 RP and budget 2.1 Approve the RP and budget (including compensation Hanbin PMO September 2015 completed standard) based on preliminary design. 2.2 Hanbin PMO, TRO DMS on LA and HD based on / and RP November, 2015 completed detail design institute 2.3 RP updated based on DMS Hanbin PMO and March 2016 Ongoing and approval ADB 2.4 Village December 2015 Village-level restoration plan 14 villages Committee completed 3 Compensation agreement 3.1 Village-level land 14 villages LRB and PMO March~ June 2016 compensation agreement 3.2 Distribution land 14 villages Town and village April ~August 2016

Responsible No. Resettlement task Target Time Remark unit compensation fee to AHs and collective allocation of land (if possible) 4 Implementation of livelihood restoration measures 4.1 Town, village Income restoration through 854 affected collective, Labor Apr 2016~Apr2017 business and employment households Bureau 4.2 Implementation of training 854 affected Apr 2016~Apr2017 Labor Bureau plan households 4.3 Vulnerable groups assistance Civil Affairs 192 affected measures implementation Bureau and Oct ~ Nov2015 Completed Vulnerable HH Hanbin PMO 4.4 Hanbin PMO Identifying and hiring HHs for 2925 affected and, Labor March 2016 ~ July employment under project people Bureau and 2018 during construction contractor 5 Implementation of House Relocation 5.1 Negotiate agreement HH by LRB, PRO and 14 villages Apr ~August 2016 HH TRO and AH 5.2 PMO, TRO and Payment 14 villages May~ Sep 2016 AH 5.3 All HD except who Housing site allocation/Unit PMO, TRO and chosen cash May~ Sep 2016 allocation AH compensation 5.4 All HD except who PMO, TRO and Construction houses chosen cash May ~Dec 2016 AH compensation 6 Capacity building of resettlement agencies 6.1 Train relevant staff from 15 persons ADB May 2015 Completed HPMO 6.2 Train relevant officials from FFPO and 100 persons March 2016 county, town and village Hanbin LRB 7 Monitoring and evaluation 7.1 Project office and Establish an internal and As per RP implementation March 2016 external M&E mechanism agency 7.2 Entrust external M&E monitor8 HPMO March 2016 External 7.3 Baseline survey One report April 2016 monitoring unit Project office and 7.4 Internal monitoring report Quarterly report implementation April 2016 agency July 2016 1st report 7.5 External monitoring report Semiannual report External Jan 2017 2nd report monitoring unit July 2017 3rd repot 7.6 External evaluation report Annual report Jan 2018 4th report

8 It is confirmed that the negotiation is ongoing, and the monitor is expected to be entrusted in the middle of March 2016.

Responsible No. Resettlement task Target Time Remark unit Jan 2019 5th report Resettlement completion 7.7 One report PPMO and IA July 2019 report 8 Public consultation Hanbin PMO On going 9 Grievance redress Hanbin PMO On going 10 Disbursement of compensation fees 10.1 - To implementation agency Initial funds March 2016 Implementation March 2016 June 10.2 - To village Most funds – agency 2016 Implementation Start from March 10.3 - To household Most funds agency and 2016 village committee 11 Start civil works 11.1 Hanbin project Hanbin PMO March 2016 FFPO=Foreign Funds Project Office in Shaanxi Provincial Transport Department, PMO=Project Management Office, LRB=Land Resource Bureau, AH=Affected Household, PRO=Project Resettlement Office, TRO=Township Resettlement Office.

11 Monitoring, Evaluation and Report

232. In order to ensure the successful implementation of the RP and realize the objectives of resettlement properly, land acquisition, property demolition, and resettlement activities of the Project shall be subject to periodic M&E according to ADBs resettlement policy, including internal and external monitoring.

11.1 Internal Monitoring

233. The internal resettlement monitoring agencies will include HPMO, finance bureau and other departments concerned (e.g., land and resources bureau). The HPMO shall develop a detailed internal monitoring plan for land acquisition and resettlement, including:

(i) Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during implementation; (ii) Status of LA and HD and any variations for the final RP; (iii) Restoration of the household income of the APs after LA; (iv) Preparation of housing site and relocation after HD; (v) Restoration and resettlement of woman and vulnerable persons; (vi) Payment, use and availability of compensation fees for resettlement; (vii) Degree of public participation and consultation during resettlement; (viii) Resettlement training and its effectiveness; (ix) Establishment, staff training and working efficiency of resettlement management agencies; and (x) Any unexpected changes from the final RP and corrective plans prepared to deal with the changes.

234. The HPMO shall submit an internal monitoring report to SPPMO and ADB quarterly. Such report shall indicate the statistics of the past months in tables, and reflect the progress of LA, resettlement and use of compensation fees. HPRO will also be responsible to prepare a resettlement completion report; this can be done in conjunction with the external monitor. This report will be submitted to SPPMO and ADB.

11.2 External Monitoring

235. According to ADB’s policies, the HPMO shall employ a qualified, independent and experienced resettlement agency as the external RP M&E agency.

236. The external M&E agency shall conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, and give advice. It will also conduct follow-up monitoring of the APs production levels and living standard, and submit M&E reports to the SPPMO and HPMO. SPPMO shall submit the external M&E report to ADB semiannually.

11.3 Scope and methodology of external monitoring

(i) Baseline survey

237. The external M&E agency will conduct a baseline survey on the affected villages to obtain baseline data on the sample AHs’ production levels and living standard (living, production and income level). The production level and living standard survey will be conducted semiannually to track variations of the APs. This survey will be conducted using random interview, key informants interview, focus group discussion and field observation to acquire necessary information. A statistical analysis and an evaluation will be made on this basis.

238. A sample of 20% of significant AH by LA, 100% of the AH by HD affected HHs, to be sampled randomly but with a representative sample of affected vulnerable groups.

(ii) Periodic M&E

239. During the implementation of the RP, the external M&E agency shall conduct periodic follow-up resettlement monitoring semiannually of the following activities by means of field observation, key informants interview, random interview and focus group discussion:

 Payment and amount of compensation fees;  Training;  Support of women and the vulnerable groups;  Restoration and reconstruction of infrastructure and special facilities;  Livelihood restoration options and results;  House demolition and reconstruction;  Compensation for lost property;  Time table of the above mentioned activities (applicable for any time);  Performance of resettlement organizations;  Use of collective land compensation and the income of APs;  Income growth of labor through employment; and  If the APs benefited from the project.

(iii) Public consultation and participation

240. The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation.

(iv) Grievance redress

241. The external M&E agency will visit the affected villages and groups regularly, and interviewing the township government and IA that accept grievances about how grievances have been handled. It will also meet complainants, and propose corrective measures and advice for existing issues so as to make the resettlement process more effective.

(v) External monitoring report

242. The external M&E agency will submit a monitoring or evaluation report (in Chinese and English) to the SPPMO and XCPMO semiannually; SPPMO will forward both copies to ADB. The TOR for External M&E can be found in Appendix 3.

Table 11-1: Schedule of Monitoring and Evaluation Report Month 1 Socioeconomic baseline survey report March 2016 2 First monitoring report July 2016 3 Second monitoring report Jan 2017 4 Third monitoring report July 217 5 First evaluation report Jan 2018 6 Second evaluation report Jan 2019

11.4 Post Evaluation

243. After project implementation, the post-evaluation will be implemented to evaluate the Project’s resettlement activities on the basis of M&E to (i) confirm the RP objectives have been met and (ii) to obtain successful experience and lessons in land acquisition and property demotion as a reference for future work.

244. Post evaluation will be led by HPRO, with support from EM. It should be started earlier when records are fresh but it can only be finalized when evaluation reports confirm satisfactory restoration.

Appendix 1: Relevant Laws and Policies of the PRC

1. The Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) promulgated in October 2004 defines the principles and rates of compensation for land acquisition and resettlement, land acquisition procedures, and monitoring system, and the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) play a similar role. These legal documents have become the legal basis for resettlement of the Project. The key provisions of the above policies are as follows:

Table A2.1: Abstract of the Land Administration Law and Relevant Policies Item Key points Index Land ownership The People's Republic of China resorts to a socialist public Article 2 of the Land ownership i.e. an ownership by the whole people and ownerships by Administration Law of collectives, of land. the The State introduces the system of compensated use of land owned PRC by the State except the land has been allocated for use by the State according to law. Application for Any unit or individual that need land for construction purposes Articles 43 and 44 of the construction land should apply for the use of land owned by the State according to Land Administration Law law; Whereas occupation of land for construction purposes involves of the PRC the conversion of agricultural land into land for construction purposes, the examination and approval procedures in this regard shall be required. All applications for land use for construction shall be accepted by the Article 17 of the Land administrative department in charge of land of the county Administration government in a unified manner, and submitted to higher authorities Regulations of Shaanxi level by level after examination by the county government. If the Province acquisition or use of land for construction involves farmland conversion, the administrative department in charge of land of the county government shall file an application, which shall be submitted to higher authorities level by level after examination by the county government. In case of acquisition or use of woodland, or acquisition or use of land in the urban planning area, the land user shall obtain the approval of the forestry and construction departments at or above the county level, and go through the construction land approval formalities as stipulated herein. The approved construction land must be used for the approved purpose and its use shall not be altered without authorization. If the change of use is necessary, Article 56 of the Land Administration Law of the PRC shall apply. Land acquisition The acquisition of basic farmland exceeding 35 hectares outside the Article 45 of the Land authority basic farmland, and other land exceeding 70 hectares shall be Administration Law of approved by the State Council. Acquisition of land other than the prescribed in the preceding paragraph shall be approved by the PRC governments of provinces, autonomous regions and municipalities and submitted to the State Council for the record The acquisition of not more than 35 hectares of cultivated land other Article 20 of the Land than basic farmland, and not more than 70 hectares of other land Administration than cultivated land shall be approved by the provincial government. Regulations of Shaanxi Province

Item Key points Index Land acquisition For the acquisition of land by the State the local governments at and announcement above the county level shall make an announcement and organize system the implementation after the approval according to the legal procedures. After the plan for land compensation and resettlement fees is finalized, related local governments shall make an announcement and hear the opinions of the rural collective economic organizations and peasants whose land has been acquired. Rural collective economic organizations shall make public to its Articles 46, 48 and 49 of members the receipts and expenditures of the land compensation the Land fees for land acquired and accept their supervision. Administration Law of the PRC Compensation In acquiring land, compensation should be made according to the Article 47 of the Land rates for land original purposes of the land acquired. Administration Law of acquisition Compensation fees for land acquired include land compensation the fees, PRC resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be

resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. However, the maximum Article 23 of the Land resettlement fee per hectare of land acquired shall not exceed 15 Administration times of the average annual output value of the three years prior to Regulations of Shaanxi the acquisition. Province

(1) Acquired vegetable land or irrigated land shall be compensated for at 8-10 times the average annual output value (AAOV) of the three years prior to acquisition of such land, acquired irrigable land, garden land or lotus root pond at 7-9 times, acquired rain-fed farmland or non-irrigated land at 6-8 times, crop rotation land at 6 times, and pasture land or fishpond at 3-5 times; (2) Acquired newly reclaimed farmland that has been cultivated for less than 3 years shall be compensated for at twice the AAOV, and the investment in development shall be compensated for; (3) Acquired housing land, threshing ground or sunning ground shall be compensated for based on the original land type; (4) The compensation rate for allocated state-owned farm, forest farm, pasture or fishing ground shall be based on subparagraphs (1), (2) and (3) of this paragraph. The compensation rate for acquired or allocated woodland shall be as stipulated by the state. Temporary land Users who use the land temporarily should use the land according Article 57 of the Land use to the purposes agreed upon in the contract for the temporary use Administration Law of of land and should not build permanent structures. the

Item Key points Index The term for the temporary use of land shall not usually exceed two PRC years.

If state-owned or collectively owned land is to be used temporarily Article 31 of the Land for project construction, geologic investigation or any other purpose, Administration an application shall be filed along with the application for Regulations of Shaanxi construction land and approved by the administrative department in Province charge of land; in case of separate application for temporary land use, it shall be approved by the administrative department in charge of land of the county government in case of noncultivated land, by the administrative department in charge of land of the prefecture or municipal government in case of cultivated land, or the administrative department in charge of land of the provincial government in case of basic farmland. Temporary land use in the urban planning area shall be first approved by the municipal administrative department in charge of construction before submission for approval. The user of temporarily used land shall use the land for the approved purpose and shall not construct any permanent building thereon. The period of temporary land use shall not exceed 2 years in general.

Table A2.2: Key Provisions of SC [2004] No.28 and MLR [2004] No.238, and their Application SC [2004] No.28 Improvement of Compensation and Resettlement Systems for — MLR [2004] No.238 Land Acquisition Article 12 County-level and above local governments shall take practical Fixation of uniform AAOV Improvement measures so that the standard of living of LEFs is not reduced by rates Determination of of measures land acquisition. uniform AAOV multiples for Land compensation, resettlement subsidy and compensation for Fixation of integrated land compensation for land ground attachments and crops shall be paid in full and timely prices for land acquisition acquisition pursuant to law. If the land compensation and resettlement areas Distribution of land subsidy pursuant to the prevailing laws and regulations are compensation insufficient to maintain the former standard of living of the LEFs or to pay the social security expenses of farmers who lose all land due to land acquisition, governments of provinces, autonomous regions and municipalities directly under the central government shall approve an increased resettlement subsidy. If the sum of the land compensation and the resettlement subsidy attains the statutory upper limit and is still insufficient to maintain the former standard of living of the LEFs, local governments may pay a subsidy from the income from compensated use of state land. Governments of provinces, autonomous regions and municipalities directly under the central government shall fix and publish the uniform AAOV rates or integrated land prices for land acquisition of all cities and counties, so that the same price

applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full. Article 13 County-level and above local governments shall take specific Resettlement for Proper resettlement of measures to guarantee long-term livelihoods of LEFs. agricultural production LEFs For projects with a stable income, farmers may become a Resettlement by shareholder using the right to use of land used for construction reemployment Resettlement approved pursuant to law. by dividend distribution Non- Within the urban planning area, local governments shall bring local resettlement farmers who lose all land due to land acquisition into the urban

SC [2004] No.28 Improvement of Compensation and Resettlement Systems for — MLR [2004] No.238 Land Acquisition employment system, and establish a social security system; out of the urban planning area, in acquiring land collectively owned by

farmers, local governments shall reserve necessary arable land or arrange appropriate jobs for LEFs within the same administrative area; farmers without land who do not have the basic living and production conditions shall be subject to non-local resettlement. The labor and social security authorities shall propose guidelines for the employment training and social security systems for LEFs as soon as possible. Article 14 During land acquisition, the ownership of collective land of Disclosure of Improvement of land farmers and the right to contracted management of farmers’ land land information on acquisition procedures shall be maintained. acquisition Before acquisition is submitted for approval pursuant to law, the land Confirmation of use, location, compensation rate and mode of resettlement of the acquisition survey land to be acquired shall be notified to LEFs; the survey results of results Organization

the present situation of the land to be acquired shall be confirmed of land acquisition by rural collective economic organizations and farmers to be hearing affected by land acquisition; if necessary, the land and resources authorities shall organize a hearing in accordance with the applicable provisions. The materials for notification to and confirmation by the LEFs shall be taken as requisite materials for approval for land acquisition. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of LEFs and land users. Approved

matters of land acquisition shall be disclosed unless in special cases. Article 15 If the compensation and resettlement for land acquisition has not Disclosure of approval Strengthening been implemented, the acquired land shall not be used forcibly. items of land acquisition Supervision over the Governments of provinces, autonomous regions and Payment of compensation implementation of municipalities directly under the central government shall and resettlement expenses land acquisition formulate the procedures for the distribution of the land for compensation within rural collective economic organizations on land acquisition the principle that the land compensation is used for rural Post-approval supervision households affected by land acquisition mainly. and inspection of land Rural collective economic organizations affected by land acquisition acquisition shall disclose the receipt, disbursement and allocation of land compensation fees to their members and accept supervision. The agricultural and civil affairs authorities shall

strengthen the supervision over the allocation and use of land compensation fees within rural collective economic organizations.

Appendix 2: Resettlement Information Booklet

1 Project Resettlement Impact

2. The impact of land acquisition and demolition of the project involves four towns and 11 administrative villages. See Table 1for reference.

Table 1: List of Towns and Administrative Villages affected by Road Components Name of village/ neighborhood committee Road Components Name of town/ street affected affected Dongwan Village, Zaoyang Village, Longquan Anxun Highway Zaoyang town and Duanjiahe town Village Beian Village, Gaobiliang Village, Xuejiawan Village and Lijiazhuang Village Heihu Village, Tangtai Village, Guiping Village Yandong Highway Yanban town and Yinghu Town and Dongqiao Village

1.1 Impact of Permanent Collective Land Acquisition

3. The project will permanently acquire 456.19 mu rural collective land of the abovementioned areas, including cultivated land of 132.54 mu (29.00%), housing plot or homestead of 20.8mu (4.56%), barren land (Slop unused land, poor soil land, rocks, river bed, etc.) of 7.39 mu (1.60%) and forest land of 295.46mu (64.77%).

Table 2: Permanent Land Acquisition Impact by Land Type and Affected Villages Village Permanent land acquisition (mu) No. of No. of Road Town committee/ Cultivated Home Forest Barren Sub- affected affected community land stead land land total HH Dongwan 12.53 2.08 4.01 0 18.62 35 116 Zaoyang Zaoyang 26.57 6.9 26.36 0 59.83 92 373

Longquan 12.60 5.95 0 0 18.55 112 396 Beian 5.35 0.71 7.46 0 13.52 45 150 Gaobiliang 3.72 0.42 20.92 0 25.06 91 289 Anxun Xuejiawan 38.13 2.47 98.59 0 139.19 301 930 Highway Duanjia Huangqiao 0 0 2.31 0 2.31 2 7 he Mituosi 1.42 0 9.42 0 10.84 25 80 Wenya 0.32 0.15 20.86 0 21.33 45 142 Lijiawan 2.45 0 9.15 0 11.6 9 35 Subtotal 103.09 18.68 199.08 0 320.85 757 2518 Heihu 9.52 0.23 0 3.67 13.42 13 52 Yanba Tangtai 10.68 0.67 20.15 3.72 35.22 21 85 Yandong Guiping 8.47 0.87 46.57 0 55.91 28 112 Highway Yinghu Dongqiao 0.78 0.35 29.66 0 30.79 35 158 Subtotal 29.45 2.12 96.38 7.39 135.34 97 407

Village Permanent land acquisition (mu) No. of No. of Road Town committee/ Cultivated Home Forest Barren Sub- affected affected community land stead land land total HH Total 132.54 20.8 295.46 7.39 456.19 854 2925 Proportion % 29.05 4.56 64.77 1.62 100 / /

1.2 Temporary Land Occupation

4. In the construction scheme, Yandong Highway involves temporary land occupation, including dry land occupation of 29.16mu, and paddy field of 17.45 mu, totaling 46.56 mu cultivated land. Compensation of CNY 1,300 per mu per year will be paid to the affected households directly. After the construction of the project, the land will be fully recovered by the contractors.

1.3 House Demolition

5. The project will involve housing demolition of 10,244m2, including brick-concrete houses of 7,521.97m2 (73.43%), brick-wood houses of 810.46 m2 (7.91%), earth-wood houses of 1,569.8m2 (15.32%) and simple structure or makeshift houses of 341.77m2 (3.34%). All buildings are rural residential houses; there are no urban houses. A total 56 households with 238 people are affected by the demolition.

Table 2-6: Impact of Demolished Rural Residential Houses House demolition (㎡)

Road Town Village Brick- Brick Earth- Makeshift Sub- AHs APs Concrete -wood wood houses total

1.4 Affected Population

6. A total of 854 households with 2,925 people are affected by the projects, including 599 households with 2,234 people affected by land acquisition only, 56 households with 251 people both land acquisition and house demolition. No enterprise and public institution is affected by the land acquisition and demolition.

Table 4: Affected Population County Road Affected by LA Affected by HD AHs 757 38 Anxun Highway Aps 2518 143 AHs 97 18 Hanbin District Yandong Highway Aps 407 95 AHs 854 56 Total Aps 2925 238

2 Legal Framework and Policies

2.1 Policy Basis

7. The PRC relevant laws and regulations include the following:

 The Land Administration Law of the People’s Republic of China (Amended at the Eleventh Session of the Standing Committee of the Tenth National People’s Congress on August 28, 2004; and effective as of then);  Regulations on the Protection of Basic Cultivated Land (No.257 Decree of the State Council of The People’s Republic of China on December 27, 1998);  Interim Regulations on Cultivated Land Use Tax of the People’s Republic of China (No. 511 Document of the State Council issued on December 1, 2007 and effective on January 1, 2008);  Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28);  Notice on the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of China (November 3, 2004, Guotuzifa [2004] No. 238); and  Real Property Right Law of the People’s Republic of China (Order of the People’s Republic of China No. 62, in effect as of October 1, 2007).

8. Relevant Policies Of Shaanxi Province, Ankang City:

 Regulations on the Implementation of the Land Administration Law of the People’s Republic of China of Shaanxi Province (adopted at the Twelfth Session of the Standing Committee of the Ninth Provincial People’s Congress on November 30, 1999, and effective on January 1, 2000);  Regulations on Land Acquisition for Construction Project of Shaanxi Province. No.78 document issued and effective as of January 8, 2002 by Shaanxi Provincial People’s Government;  Notice on the Average Standard of Unified Annual Output Value and Section Comprehensive Land Price on Land Acquisition in Shaanxi Province [No. 36 Shaanzhengbanfa (2010)]; and

 Supplementary Notice on Related Issues on the Center of Ankang City Construction Land Acquisition and Demolition and Farmers Affected by Land Acquisition Old-age Insurance (An Zheng Fa (2009) No. 15).

9. ADB’s Policy Requirements On Involuntary Resettlement  ADB Safeguard Policy Statement (2009), Safeguard requirement 2: Involuntary Resettlement; and “Gender Check List: Resettlement”, Asian Development Bank, February 2003.

2.2 Compensation Standards for Land Acquisition and House Demolition

10. Based on the law and local regulations, the Hanbin sub-project will adopt the following standards for permanent land acquisition and house demolition.

Table 5: Compensation Standard for the Project Land Unit (CNY/mu) Category Paddy Plain Sloping Home Forest land Barren land field Dryland Dryland stead Compensation No 60,000 54,000 45,000 48,600 22,500 Standard compensation

11. The compensation rate for temporary land occupation is CNY 1,300 per year. Full recovering policy will be applied after project completion. Occupation will be for a maximum of 2 years and the land will be restored to its pre-occupation standards prior compensation for house demolition as follows.

Table 6: Compensation Standard for House Demolition Type Structure type Unit Base price (Yuan) Remark CNY Housing land 48600 /mu CNY Brick-concrete 1000 /m2 The compensation for the house is

CNY determined based on market price Compensation Brick-timber 2 520 /m evaluation but not less than the for house CNY proposed base price. Earth-wood 2 400 /m CNY Makeshift house 2 200 /m CNY 1. Relocation subsidy: CNY1000 for a household for one Moving subsidy 2 /m time. 2. Transition subsidy: CNY250 for a household with three or below members monthly; CNY300 for a household with

4-6 members monthly; andCNY400 for a household with 7 CNY / Transition subsidy or above members monthly. Transitional period is six month Other subsidy month. In case of time exceeding, the actual time will be for house counted. Signing CNY agreement 4000 Empty and hand over the house Early /HH moving in 20 days reward Signing CNY 2000 Empty and hand over the house

Type Structure type Unit Base price (Yuan) Remark agreement /HH in 30 days Signing CNY agreement 1000 Empty and hand over the house /HH in 40 days

3 Relocation of Affected Households of House Demolition

3.1 Relocation options

12. In all cases, cash compensation for housing plot, house structures including other structures and attachments based on the replacement costs and allowances will be provided. The Project also provides several options for APs to choose based on their own conditions, which will positively facilitate to restore or improve their living condition smoothly. The major options include:

(i) Cash Compensation without housing lot allocation a) Cash compensation without new house construction

13. For those households with alternative houses in the city or nearby places or who plan to buy commercial residential house in town and then to give up reconstructing new houses, a written application is required. In addition to cash compensation of housing lot and replacement price of house structure including annex buildings paid in cash to AH directly, an additional resettlement subsidy of CNY 10,000 per person and CNY 10,000 cash reward per person will be granted once the written application is approved.

b) Cash compensation with existing house expanding or rehabilitation

14. Households with an existing house have potential to add more floors, or where the housing lot is big enough to add an annex building, the AP does not need another housing lot. If APs choose this option, a written application is required. In addition to cash compensation of housing lot and house structure including annex buildings, an additional resettlement subsidy of CNY 10,000 per person and CNY 10,000 cash reward per person will be granted once the written application is approved.

c) Reconstruct new house with purchase housing lot by APs

15. For those who choose to construct new houses by themselves and purchase housing lot by themselves, or they use their existing housing land, the project will compensate their housing lot and structures according to the Project standards. After several discussions with AHs, it was agreed that the current compensation standard is generally enough to purchase similar condition housing lot in the same area. If an AH purchases a housing lot cheaper than the compensation standard, the savings belongs to the AH. If a household chooses to reconstruct their new house in a better place (e.g. closer to town center area or a wider space) voluntarily, they will need to pay the additional costs by themselves.

(ii) Concentrated resettlement in New Rural Village Development Plan

16. 16. For those who are willing to purchase a new house in residential area under a new rural village development program, cash compensation of housing lot and replacement price will be paid directly to AHs. In addition, discount has been negotiated and committed. Both location and quality of the house will be better than the proposed demolition houses in general. The price committed is based on the construction costs, higher than the compensation standard but lower than the commercial residential house. The surveyed AHs will continue to discuss the details in terms of concentrated resettlement sites selection.

(iii) Individual reconstruction on the government allocated housing site

17. If the households have difficulties finding a housing lot, but still want to reconstruct their new houses, the town government has committed to provide the AHs with housing lots acceptable to them. The price will not exceed the compensation standard regardless of actual costs. There will be no additional cost to the AHs.

18. The provided housing lot can either be located in a concentrated area or a single housing lot. In either case, water, electricity supply and road will be made available, and the land leveling will be done by the project. The design fee also will be covered by the project.

19. The selection of the relocation site and plot should be done before the end of June 2015.

20. All affected villages will actively participate in arrangements and negotiation with town government.

3.2 Concentrated resettlement site

21. According to the preliminary decision of Duanhiahe Town, a resettlement site will be built in the Town. One option is trying to be integrated into new rural village development program, but has not decided which one yet.

22. The price for each house type is based on the location, area, decoration and structural assessment. It is estimated that the price will be CNY1000-1800/m2. The resettlement households can choose different house types and sizes according to their economic condition and housing requirement. As in all cases with cash compensation for housing land, house and its annex buildings, the selection of type and size in each site is fully voluntary and depends on each household. If the chosen type and size is smaller than their originals, the saving belongs to APs, but if the selection is larger, the AH needs to pay the additional cost by themselves. As the new houses are much better than the original houses in terms of location and construction quality, the price is higher than the compensation standard. All APs view that is reasonable and acceptable. In any case, if the APs do not satisfy the concentrated relocation option, individual relocation by allocated housing site in a similar area is available.

3.3 Other subsidy policy:

23. The affected households will be entitled the following rights and interests: (i) Preferential labor training; (ii) Benefits from the social security policy in project implementation area including eligible personnel into Endowment Insurance LEF in Ankang; and

(iii) Access to the suitable jobs created by the project directly and indirectly, including jobs under project implantation agencies and jobs relating to enterprises attracted into the project area.

4 Income restoration assistance measures of Land Acquisition

(i) Cash compensation and distribution

24. The affected villages/village groups will be compensated in cash based on the standards of this sub project adopted. The land compensation distribution from village to AP has two scenarios: 1) If the land acquisition is a relatively large amount and the village has not enough reserved land to be allocated to APs, which is common in the project area, 100% of the compensation will be distributed to APs directly. 2) If the land acquisition amount is small and the village has enough reserved land (e.g. returned from a household which has moved to the city) to be allocated to APs to cover their land loss fully, then the APs will be allocated land and the compensation will be reserved for village infrastructure maintenance or improvement. Standing crops compensation rate is CNY 1200, of which 100% will be paid to the affected households. This compensation will be added to the overall compensation standard of the AH.

25. To ensure that the affected households use the compensation in a rational manner, the PMO and other related agencies will provide guidance and required training. The following are restoration options and assistance measures for permanent land acquisition.

(ii) Agricultural resettlement

24. For the garden seedlings and fruit tree plantation, training will be provided.

(iii) Arranged Jobs

26. Project generated job opportunities during construction and operation will be given priority to affected people.

(iv) Non-farming employment/business

27. Market information and skills about handicraft, local non-farming jobs or business opportunities will be provided.

(v) Training

28. Based on the above restoration options chosen by the AHs, training programs will be designed to meet the specific needs and preferences of AHs.

29. For the households that choose agricultural restoration measures, agricultural technical training such as gardening plant seedling producing, fruit tree plantation and other cash crop plantation will be provided as required.

30. For the non-farming employment, skill training will include landscaping, house decoration, handicraft production, car repair, and other skills. 91

29. Special training to the significantly affected households will be designed according to their final selection of non-farming business.

30. Additionally, training in the form of farmer-back-farmer training will be organized. The farmers with skills in cash crops could be invited to share experiences and skills to the new growers in the same or other villages. It will be useful to organize study tours to other villages for APs who are interested in planting new cash crops. It will either be organized by PMO directly or by entrusted government agencies such as agriculture bureau, forestry bureau, or women’s federation. In terms of off-farming training, it will be delegated to labor and social insurance bureau.

5 Assistance to Vulnerable Groups

31. A support fund for vulnerable groups will be established under the project to support vulnerable groups affected by the project. The main affected vulnerable groups are the poor, single parent family and women-led family, Wubaoi (five-guarantee households), households affected by disability and illness. A series of additional measures have been put in place to help them in livelihood restoration and relocation restoration.

(i) Giving priority to vulnerable groups in resettlement measures

a) Land acquisition affected households:  Priorities will be given in obtaining replacement land through allocation of reserved land, or through land transfer if the vulnerable AH chooses to restore their income through agricultural measures;  The households with a labor force will be given priority in skill training and priorities given in provision of arranged jobs by the project and local government. Eliminating zero employment of poor households (with a labor force) is the target of government poverty alleviation; it will also be the target of this project by giving priority of project generated jobs to them;  Include all eligible AH into LEF endowment insurance. The new rural endowment insurance will be an optimal option for the AH on a voluntary basis; and  Provide preference loan to the significantly affected households if necessary in developing non-farming business, such as purchasing vehicles for transport business, operating repair shops, developing other income generating business, detailed plan will be discussed during implementation.

b) House demolition affected households:  Priorities will be given to vulnerable group to choose resettlement locations;  If the vulnerable households who choose to reconstruct new house by themselves, priority will be given in arranging relocation housing land. In addition, a one-off extra poor subsidy support payment of CNY 5,000 will be provided;  A one-off advance moving reward of CNY 3,000 will also be provided to vulnerable households if they meet the advance moving criteria; and  Minimum size housing will be guaranteed for the poor.

(ii) Including eligible vulnerable groups in MLSS as a priority

32. According to the MLSS policy of Hanbin District for rural residence, eligible vulnerable groups affected by the Project will be included in the MLSS in time and receive MLSS benefits so as to ensure that the per capita net income of each rural AH is not less than CNY 2,500 a year and the per capita income of each urban AH is not less than CNY 209/month.

(iii) Providing rural medical assistance to eligible vulnerable groups

33. Rural medical assistance will be provided to eligible vulnerable groups to ensure them to be included in new rural co-operative medical system to solve their difficulty in receiving medical care. Hanbin District and Xunyang County People’s Government will provide medical assistance for the rural residents in line with the policies.

6 Grievance Procedures

34. Any APs ca put forward grievance regarding problems of land acquisition and resettlement. The basic procedure of the grievance solution is: APs-Village committees- Township or town government- county resettlement office-Provincial PMO resettlement division.

35. The basic grievance redress system is as follows:

(i) Stage 1: If APs have any dissatisfaction with RP or implementation, they may report to the villagers’ committee. The villagers’ committee or the APs may directly appeal to the resettlement offices for negotiated resolution or put forward an oral or written grievance. The resettlement offices record the complaints and resolve the problems within two weeks after the receipt of the complaints if the grievance is oral. (ii) Stage 2: If the APs who lodge the complaints are not satisfied with the results of the Stage 1, they may lodge a grievance to Hanbin District PMO and TRO, after receiving the decision. The latter will make resolution within two weeks. (iii) Stage 3: If the persons who lodge the complaints are still not satisfied, they may after receiving the decision, lodge complaints to the SPPMO for arbitration. The latter will make arbitration decision within three weeks. (iv) Stage 4: If the persons are still dissatisfied with the decision of the Stage 3, they may, after receiving the arbitration decision, appeal to administrative setups step by step (township office, county office, authorities of letters and calls, administrative supervision, disciplinary inspection and procurement department) according to Administrative Procedure law.

36. The complaints and appeal procedures will be conveyed to APs through public meetings and other information dissemination procedures such as village notice boards, to ensure they fully understand their rights and the mechanisms for complaint and appeal. Any complaints raised by APs and resolutions must be registered in written form by resettlement office that receives these grievances.

37. At any point, if the appellant is dissatisfied, he/she may bring a suit in a civil court in accordance with the Civil Procedure Law of the PRC.

38. The APs may also express grievance to the external monitoring agency, who would then report it to Hanbin District resettlement office, Hanbin District Land and Resource Bureau, and SPPMO. Alternatively, the APs may submit a complaint to the ADB’s Project Team to try to resolve the problem.

If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB’s safeguard policy, the APs may appeal directly to ADB in accordance with ADB’s Accountability Mechanism (2012).9

7 Implementation Organizations of Relocation and Resettlement

39. The agencies responsible for the LA and the HD in the Project are:  Shaanxi Provincial (Communication Department ADB Loan) Project Leading Group (SPPLG)  Shaanxi Provincial (Communication Department ADB Loan) Project Management Office (SPPMO)  Hanbin District and Xunyang County (ADB Loan Road) Project Leading Group (HXPLG)  Hanbin District ( ADB Loan Road) Project Management Office (HPMO)  Hanbin District (ADB Loan Road) Project Resettlement Office (HPRO)  Project town/township governments (PTG)  Village committees/residents committee (VC/RC)  Project design Institute (DI)  External independent monitoring and evaluation agency  Other departments: Land Resources Bureau (LRB), LA and Resettlement Office, Women’s Federation, Labor and Social Security Bureau.

9 For further information, see http://www.adb.org/Accountability-Mechanism/default.asp.

Figure1: Project Resettlement Organizations

Appendix 3: TOR for External Monitoring and Evaluation Terms of Reference: External Monitoring – Resettlement Plan

A. Purpose resettlement monitoring and evaluation

1. According to ADB’s SPS 2009 on involuntary resettlement, the resettlement work of this project will be subject to external M&E. The monitoring will ensure that the resettlement processes are being implemented in accordance with the requirements set out in the RP. The external M&E will also undertake an evaluation of changes in peoples’ standard of living as a result of the project and project- related LAR activities. A TOR is drafted and a firm/institute with 8–10 years of relevant social and resettlement experience will be engaged by CQS method. The external monitor will work in close coordination with the Social Safeguards and Social Development Specialist and Gender Specialist to be contracted for the capacity building.

2. M&E reports will be submitted to ADB and FIDC regularly twice a year during the implementation period and once a year following project completion. Through external M&E, ADB and the EAs can fully understand if the LAR work is implemented on schedule and according to the quality standard, point out existing issues, and propose suggestions for improvement.

B. Scope and Methods of External Monitoring

(i) Baseline Survey

3. The external monitoring agency will undertake a baseline survey of the villages affected by land acquisition in the project, and collect baseline data on the production level and standard of living of the monitored displaced households (standard of living, production, and income levels). The survey of production level and standard of living will be conducted semiannually to track variations. The survey methods include follow-up survey of sample households (minimum sample size: 10% of households affected by land acquisition, 20% of households affected by house demolition, 40% households significantly affected, 50% of affected villages; the households will be sampled randomly). A statistical analysis will be made on this basis for evaluation.

(ii) Regular Monitoring and Evaluation

4. During the RP implementation, the external monitoring agency will perform regular follow-up resettlement monitoring of the following activities twice a year through field observation, follow-up survey of the sample households, and random interview with the displaced persons. The external monitoring agency will monitor:

(a) the progress of disbursement of compensation for LAR and house demolition; (b) the progress of selection and preparation of resettlement sites including provisions for civic amenities, construction of new houses, and adequacy of construction; (c) institutional capacity of the resettlement office—adequate trained staffing, office space and equipment, and provisions for ongoing training; (d) financial capacity of the PMO, particularly the budgetary arrangements and cash flow for resettlement activities;

(e) the process of public participation and consultation, ensuring that the public participation and consultation schedule is being followed and outcomes are being incorporated in resettlement implementation process; (f) the functioning of the GRM; (g) the progress of livelihood rehabilitation plans and training, restoration of productive assets, and livelihood systems; (h) rehabilitation of affected shops; (i) that the vulnerable groups are being provided support in accordance to the criteria set out in the RP; (j) the progress of restoration and reconstruction of infrastructure and special facilities; (k) implementation schedule for the RP activities; and (l) the overall RP implementation process and if any significant involuntary resettlement are identified, the agency will prepare a corrective action plan to address such issues.

5. In addition, the external monitor will be responsible for verifying the internal monitoring reports of IA on implementation and progress of the RP. These internal monitoring reports are prepared by the IA as part of the quarterly progress report (under PPMS).

6. On the basis of the baseline survey, the external monitoring agency will evaluate the project impacts and will provide a “without” and “with” project comparative analysis.

(iii) Monitoring Indicators

7. The following indicators shall be monitored and evaluated in accordance with principles, entitlements, and rehabilitation strategies/plans set out in the RP:

(a) Progress: including preparation, implementation of land acquisition, house demolition, resettlement site construction, housing relocation and rehabilitation of livelihoods and living conditions; (b) Quality: including resettlement implementation, civil construction quality, timeliness, minimal disturbance/inconvenience and transition time, and degree of APs’ satisfaction; (c) Entitlements: timely allocation of full compensation entitlements and proper and timely use of funds, and adequate and timely availability of funds for resettlement site construction; (d) Economic/income conditions: household economic development before and after resettlement, including assets, production materials, subsistence materials, income, savings and debts, income generation potential, etc.; (e) Living conditions: living environment before and after resettlement, including traffic, education, sanitation, social services, commercial service facilities, etc. in the new resettlement sites; (f) Livelihood/employment: change in livelihood (income sources) and employment, including employment rate, assistance to the different APs, especially for women, and vulnerable APs, and seriously-affected households, such as those at risk of impoverishment due to land loss or housing loss; training and skill enhancement; (g) Community development: local economy in resettlement sites, environmental development, neighborhood relations and safety, and public opinions (by gender and age groups) after resettlement; and

(h) Conditions of the vulnerable groups and seriously-affected households: including before and after situations of those people.

(iv) Monitoring and Evaluation Method

8. The external monitoring agency will use both quantitative and qualitative methods to undertake the M&E such as:

(a) Surveys – questionnaire surveys based on random sampling with a minimum sample size of 10% of households affected by land acquisition, 20% of households affected by house demolition and 50% of the affected villages. These surveys will be done on annual basis to assess the impact on yearly basis. Out of the above indicated survey population, the external monitor will select a suitable sample size and will undertake follow-up surveys by using tracer survey method. It will require following the same respondents on a yearly basis to assess the project impacts. (b) Qualitative interviews and focus group discussions – with project affected persons, village and community representatives, officials in PMO and other government departments that are involved in the resettlement process; and (c) Along with written materials, photos, audio and video records, real objects shall also be used. (d) Reporting (A external monitoring report framework is provided as appendix that should be followed for reporting).

9. The RP monitoring report will include:

(a) Summary of findings and conclusion of investigations and evaluation; (b) Major problems identified (existing and potential); (c) Recommended mitigation or prevention measures which need to be taken; and (d) (Assessment of previous follow-up actions.

10. Reports will be submitted to ADB every 6 months during the resettlement implementation. After the preparation of resettlement completion reports, annual evaluations will be conducted for 2 years, or until all issues have been successfully resolved. The final evaluation report should summarize monitoring results and should clearly establish whether resettlement has been successfully completed. SDAP/GAP Implementation verification: Progress of SDAP and GAP implementation will be reported by the IA through its internal monitoring reports prepared on a quarterly basis as part of the PPMS. The external monitor will review and verify these quarterly reports and will prepare a consolidated annual report as an appendix of one of the monitoring report and will submit it to the ADB.

11. All reports will be provided in English and Chinese. It should be ensured that information on the progress and status on all aspects of LAR activities will be provided to the external monitor for verification, including records of grievances.

(v) Consultant Specifications and Inputs

12. The specialist shall have a degree in a relevant subject (sociology, anthropology, or related subject) with 10 years’ experience in M&E of projects funded by ADB or similar 40 international

development funding agencies. The consultant’s inputs will be spread intermittently over the life of the project for a total of 12 months.

(vi) Monitoring Budget

13. A total budget for RP is about CNY 264,000.