CONTENTS VOL. 9

1. GENERAL INFORMATION OF THE PROJECT ...... 6 Public Disclosure Authorized .

1.2 CONTENTS AND SCALE OF THE PROJECT CONSTRUCTION ...... 6

1.3 BENEFICIAL AREA AND AFFECTED AREA ...... 1...... 8 Public Disclosure Authorized

2. INFLUENCE OF PROJECT ...... 11

2.2 AFFECTED RESIDENTIAL HOUSE ...... 1...... 11 Public Disclosure Authorized

3 . SAMPLING INVESTIGATION ON SOCIOECONOMIC SITUATION OF AFFECTED

AND UNITS 12

3.2 INVESTIGATION RESULT OF THE BASIC SITUATION OF AFFECTED RURAL HIDUSEHOLDS...... 1 ...... 13

Public Disclosure Authorized 4. LAW AND POLICY FRAMEWORK ...... I 16

4.1 MAIN BASIS OF LAWS AND REGULATIONS ON EMIGRANTS RESETTLEMENT ...... 16 - -

4.2 LAWSAND POLICIES RELATED TO EMIGRANT RESETTLEMENT ...... 16

4.3 RESETTLEMENT PRINCIPLES ON MIGRATIONS OF THE PROJECT ...... 29

5. COMPENSATION STANDARDS ...... 31

5.1 THE RURAL DWELLING HOUSES AND FACTORY WORK DEMOLITION ...... 31

5.2 ACQUIRED COLLECTIVE LAND ...... 33

5.3 OVER-GROUND OBJECTS ATTACHED TO THE LAND ...... 33

6. RESETTLEMENT SCHEME ...... 33

6.1 RECOVERY OF PERMANENT LAND ACQUISITION...... 33

6.2 POLICY ON RESETTLEMENT FOR RURAL RELOCATED RESIDENTS ...... 36

7. PUBLIC PARTICIPATION ...... 38

7.1 STRATEGY OF PUBLIC PARTICIPATION ...... 38

7.2 SURVEY ON PUBLIC OPINION ...... 39

7.3 PUBLIC PARTICIPATION AND POLICY TRANSPARENCY ...... 42

8. APPEALING PROCEDURES ...... 43

9 .ORGANIZATION INSTITUTION & RESPONSIBILITY ...... 44 9.3 COORDINATION INSTITUTION...... 1...... 44

10. IMPLEMENTATION SCHEDULE ...... 46

10.1 PROGRESS LINKAGE BETWEEN RESETTLEMENT OF AFFECTED PEOPLE AND THE PROJECT ~

CONSTRUCTION ...... J~ ...... 46

10.2 PERMANENT LAND ACQUISITION AS THE KEY TASK ...... 1...... 46

11 .SUPERVISION & ASSESSMENT MECHANSIM ...... 1...... 49

11 . 1 INTERNAL SUPERVISION ...... 50

11 . 2 EXTERNAL INDEPENDENT SUPERVISION AND ASSESSMENT ...... 51

12. EXPENDITURE AND BUDGET...... 51

12.1 EXPENDITURE ...... 51 12.2 CAPITAL FLOW DIRECTION AND PLAN OF PAYMENT BY TRANSFER ...... ~ 53 13. LIST OF AUTHORITY ...... 1...... 55 Purpose of Resettlement Action Plan and Definition of Resettlement Terms

Resettlement Action Plan (RAP) is made according to relative State and local laws and regulations of People's Republic of China and a series of articles or clauses in the World Bank Operational Polices for Involuntary Resettlement OP4.12. The purpose of the document is to "formulate an action plan for the resettlement and recovery of project affected persons to ensure that they will benefit from the project and enjoy a better life or to at least maintain their former life standards after the accomplishment of the project."

The Project Affected Persons (PAPs) is defined as following: The so-called Project Affected Persons refers to those whose living standards have been or will be influenced negatively because of the implementation of the project, or those whose house ownership, rights or interests, land (including house site, farmland and pasture) or other personal estate or real estate have been acquired or occupied temporally or for a long time; or those whose business, profession, work, residence or habit have been affected negatively.

The Affected may be individuals or legal persons like corporations or public agencies. In the definition of the Project Affected Persons, no restriction is posed on their lawful registration, permit for life or business scope in the affected area, nor is the compensation for their properties restricted. The affected persons include:

(!) All the affected persons regardless their lawful rights, interests, and their presence during acquisition of their properties.

(2)Those with no residence permit in particular districts,

Thus, all the above affected will be regarded and recorded as the Affected regardless of their properties, land or locations.

If the acquired land or properties are used by or compensated to more than one person or household, then compensation and recovery are conducted according to loss they suffered, influence on their rights and interests and the living standards. The definition of the Affected, when the lawful rights and interests are not taken into consideration, is directly related to the unfavorable influence of the Project.

Definition to "Compensation" Compensation should be conducted to all the people affected by the Project to improve or at least maintain their living standards. Besides, compensation should be conducted for the lost properties by their replacement cost, rather than by depreciation or other excuses resulting in the decrease or discount of compensation amount. All those affected by the Project should gain rights and interests from the influence of the project. Furthermore, besides compensation on the loss of their properties, subsidy should be granted for their recovery. With regards to those persons who run businesses, reclaim land, or construct without permit of properties, rights and interests, or legal residence but are affected by the Project, they should be treated the same as those with formal legal properties, rights and interests, and permits, and they are qualified to renew their lives and gain compensation for properties.

Definition to "Resettlement" Resettlement refers to the arrangement for the PAPs in terms of production and lives for their benefits from the project. It mainly includes: (1) Relocation of living sites; (2) Reemployment of those affected in terms of their work; (3) Recovery (or compensation) for the affected land, working place, /rees and infrastructure, etc. (4)Recovery work conducted for those negatively affected in terms of thbir living standards or (life quality) because of acquisition and resettlement. I (5) Recovery or compensation for individuals or public enterprises; (6)Recovery for the negative influence in terms of culture or collective properti es. Definition for "Recovery" Recovery means to renew the abilities of PAPs to continue their productivities or t lift or at least maintain their lives to the level prior to the Project. 0 The purpose of the RAP is to provide a resettlement recovery plan for the PAPs to loss compensated and their living standards improved or at least maintained to the to the Project. To achieve this goal, recovery measurements have been provided in recover the income of the PAPs for them to sustain their life. Likewise, the and productive resources (including shops and enterprises), public and cultural properties will also be improved or at least recovered to 1. General Information of the Project

1.1 Background of the Project

Han Chang'an City had been taken as the capital by the Western Han Dynasty for 204 years. Then it was the capital of Xinmang, Western Jin, Former Zhao, Former Qin, Later Qin, Western Wei, and Northern Zhou etc. The City was abandoned after the emperor of Sui Dynasty built Daxing City. In 1961, the Relics were listed as one of the first batch of key national cultural relics units to be given special protection by the State Council. In 1992, Shaanxi Provincial People's Government officially publicized the protection scope of the relics of Han Chang'an City in No. 35 document. With unremitted efforts from all walks of life, the Relics have become one with largest scale, richest contents and perfect protection in China.

Located in the southwest of Han Chang'an City Relics and built in the 7th year during the reign of Gao Zu of Han Dynasty (200 B.C.), Weiyang Palace was the political center of Western Han Dynasty for over 200 years as well as the most important palace complex in Han Chang'an City. The implementation of protection project on the basis of original roads system will not only be beneficial for protecting and exhibiting the relics in Weiyang Palace Relics and the whole distribution, but greatly push forward the protection, exhibition, and sight-seeing of the whole relics area of Han Chang'an City.

1.2 Contents and Scale of the Project Construction

1.2.1 Contents Located in the southwest of Han Chang'an City Relics, the protection area of relics of Han Weiyang includes Weiyang Relics Area within the enclosure palace walls and the surrounding area including the east of the area of 100m extended from the section between southwest corner of the west wall of Han Chang'an City and Zhicheng Gate, the north of the area of 100m extended from the section between the southeast corner of south city wall and Anmen Gate, the west of Inner Anmen Gate Street and the south of Inner Zhicheng Gate Street. The area is 7.33km2.

To connect the area with Xi'an City, it plans to recover the road section between Outer Xi'an Gate Street to Daxing Road of Han Chang'an City and build one main parking lot outside the area. The planned area of the section is 0.07 km2.

The section on the west and south side of Weiyang Palace Relics Protection and Exhibition Area, the section scope of area extended 100m from the section from Zhicheng Gate to Anmen Gate to Daxing Road in the south and West 3rd Rind Road in the west are building control belt covering an area of 1.42km 2. The protection objects of the Protection Project for Han Dynasty Roads of Weiyang Palace include: the roads in the Palace within the scope of the palace wall, 'TIuantu" road on the inner side of the palace wall, Inner Anmen Gate Street, and Inner Zhicheng Gate Street of Chang'an City of Han Dynasty and Outer Xi'an Gate Street.

The First Phase Protection Project for Han Dynasty Roads of Weiyang Palace plans to protect five roads of Han Dynasty.

1. The north-south road inside the palace on the east side of Weiyang Palace Front Hall base will be built from Xi'an Gate to Fengjing Road (modem road);

Map 1-1 Map of First Phase Protection Project for Han Dynasty Roads of Weiyang Palace

2. The west-east road inside of the Palace on the south side of Weiyang Palace Front Hall base will be built from Zhangcheng Gate to Dengliu Road (scheme 1) or to the north-south road on the east side of Weiyang Palace Front Hall base (scheme 2);

3. The west-east road inside the Palace on the north side of Weiyang Palace Front Hall base will be built from West Gate of Weiyang Palace to Dengliu Road (scheme 1) or to the north-south road on the east side of Weiyang Palace Front Hall base (scheme 2);

4. "Huantu" road will be built from Zhangcheng Gate to Dengliu Road (scheme 1) or to Xi'an Gate (scheme 2);

5. Outer Xi'an Gate Street will be built from Xi'an Gate to Daxing Road (modern road).

1.2.2 Scale The construction scale of the first phase protection project of Weiyang Palace of Han Dynasty includes supportive projects such as roads, bridges, water supply & drainage, reclaimed water, electric power, telecommunication, integrated pipeline, parking lot and traffic equipment, etc. 7 which are all inclusive in construction scope of the project. The project scale is recommended as follows: 1. North-south road inside the Palace on the east side of Weiyang Palace Front Hall: the road is 1,972m in length and 12m in width. 2. West-east road inside the Palace on the south side of Weiyang Palace Front Hall: the road is 1,593m in length and 12m in width. 3. West-east road inside the Palace on the north side of Weiyang Palace Front Hall: the road is 1,512m in length and 12m in width. 4. "Huantu" Road: 2,743m in length and 6m in width. 5. Outer Xi'an Gate Street: the road is 562m in length and 60m in width.

The total length of road is about 8.4 km with a total covered area of about 111,000m2. Thereinto, the road greening area is 47,000m2 with seven small-sized bridges, 5,592m of DN150mDN250 water supply pipes, 5,592m of DN80--DN150 reclaimed water pipes, 2,688m of DN200-DN300 waste pipes, 4~5,630mof electrical cable, 4~5,630mtelecom cable and 2,500 m2 of parking lot.

1.3 Beneficial Area and Affected Area 1.3.1 Beneficial area Construction of the project will bring benefits, direct or indirect, to 4.84km2 of Weiyang Palace Relics Area with 9,342 people and 34.34km2 of Han Chang'an City Relics Area with 50,399 people. The accomplishment of the project will promote sustainable development of social economy and tourism industry of the area.

1.3.2. Affected area The land acquisition of the project involves relocation of three villages on the road site, namely Lujiakou, Ximazhai and Tianlucun. The permanent land acquisition area is 304.41mu with migrants of 37 households totaling 157 people and 15 affected households totaling 67 people.

1.4 Background of Social Economy of the Project Area Three administrative villages, namely Lujiakou, Ximazhai and Tianlucun, will be involved in the project, of which Tianlucun includes two hamlets namely Kejiazhai and Xiaoliuzhai with agriculture as their pillar industry. The social economy situation is as follows.

1 - 1 Social Economy Statement 1 Village Number of Population Area(mu) Income per Farmland area (mu ) Name Households capita Luiiakou 100 500 490 2000 400 Ximazhai 332 1098 1372 1800 1132 Tianlucun 160 700 680 1900 560 1.5 Measures to Reduce Project Influence 1.5.1 Phase of project planning & design In phase of project planning & design, the designing unit, in order to reduce influence of the project construction upon local social economy, should mainly take some effective measures:

In phase of project planning, try to take into full consideration the influence of project construction upon local social economy and take it as a key factor for plan optimization and comparison.

Try to reduce earth excavation and filling to reduce influence caused by constn/ction and transportation. 1

In designing, to set consummate water drainage system to avoid discharging of pollr/tant.

When selecting road schemes, try to reduce the numbers of house demo ition and displacement to alleviate the economic burdens of the residents. 1 1.5.2Construction period of project a) Reduce influence upon urban transportation In construction period, big environmental risk is usually caused construction organization which will lead to traffic jam. Once the and noise occurred, new environmental pollution will be resulted only the transportation organization should be emphasized, but to guarantee smooth traffic in this road and other crossed roads environmental risk caused by traffic jam. b) Measures to reduce dust (1) Road surface construction and mixture mixing plant should settle at leeward ide out of sensitive spots such as residential area and school, etc., which is both benI ficial for production and public health (in public health prevention distance levels, the brevention distance required is 300m) and asphalt heating technique of open style and half-open style is rejected. I (2) Construction pavement should be watered at regular intervals to damp dust and transportation powder materials should be covered.

(3) Automobiles with exhaust exceeding standards should be exclusive from the rdad.

(4) When construction is undertaken with fly ash, lime, and cement, etc. bitumen, measures like adding admixture, spraying lube and watering taken to prevent ash and dust pollution.

I c) Measures to reduce noise (1) In order to guarantee night sleep of residents, construction is prohibited in re provided that the construction site is less than 150m away from residential area.

(2) Try to reduce interruption of construction noise upon surrounding work b adjusting construction time or adopting other measures as well as taking initiative I~ o conduct consultation with institutions near construction site.

(3) Pay attention to maintenance of machinery to keep its lowest noise level; assi to operate machine by turns to reduce time in noise; hand out soundproof earplug to workers near to sound source to help them do self-protection.

(4) The concrete mixing site should be far away from residential area and try to Cvoid night construction, reduce construction time limit and alleviate influence of noise environment of residents. Treatment of waste of construction site

Remove all production and living garbage in Weiyang Palace Relics Protection Exhibition Area and take the Exhibition Area in garbage treatment system of Xi'an Urban Planning as soon as possible so as to root up garbage piled up within the Area. Prohibit abandoning and piling up garbage randomly as well as prohibit garbage from other place entering into the Area.

Set garbage receptacles at both sides of recovered protective Han Dynasty roads, surrounding area of relics exhibition area, tourism and service area, etc.; build WCs in parking lot, museum and exhibition hall, sightseeing service area, etc.; establish treatment system of tourism garbage.

1.5.3 RAP project & implementing period of land acquisition If land acquisition and relocation are unavoidable, the following measures should be adopted to reduce influence of project construction upon local community:

Strengthen collection of basic information; make deep analysis upon economic status and future development of local community; formulate pragmatic and applicable migration schedule based on the local practical situation; guarantee no loss for affected staff because of project construction;

Encourage actively the participation of public and invite people's supervision; Intensify internal and external surveillance; set up effective and smooth feedback mechanism and channels and try best to reduce information treatment period so as to ensure that all problems emerging from project implementation be solved in time. 2. Influence of Project In order to have a good command of the influence of project, the project office h d, on the quest of World Bank, in September 2005, organized special investigation group tea to visit every affected household within the project area for detailed investigation whic 1adopted combination of one by one investigation and visit & talk. The investigation 's mainly composed of area of land acquisition, types, affected population, demolished h d useholds, family members and various demolition area, etc. Moreover, all migrant residents p in the investigation work with a view to value the influence of demolition project. Besides, the investigation group had also taken residents' acquisition, demolition and migrant relocation as well as conducted

2.1 Permanent land acquisition 1

Three administrative villages, namely Lujiakou Village, Ximazhai Village and Tianlucun Village are involved in the 307.14mu permanent land acquisition of the project, of which 213.90mu is for agricultural use, covering 42.5mu from Lujiazhai, 105.5mu from X imazhai , 65.9mu from Tianlucun ; 93.24mu is industrial land mainly from Ximazhai Village. ~ 2-1 Table of oerrnanent land acauisition i Land in rural area (mu 3 Affeeted population Nuriber pf Industrial land , Households ~o~ulation land Lqbars P Lui iakou 42.5 7 38 ---bTl / Ximazhai 1 105.5 1 93.24 1 37 1 144 1 415 I ' Tianlucun 65.9 8 25 Total 213.9 93.24 52 224 :.66

2.2 Affected residential house 2.2.1 Affected rural residential house 37 households will be removed with a total area of demolition of 7,600 m2. The h demolished are in simple, brick-concrete and half-timbered structures. population adds up to 157 who are all rural residents. See details in the

Figure 2-2 Building Structure for Houses Affecteing Rural Residents Family House area(m2) Name of sub-item Households members Simple Simple Simple Simple Project of protection of roads in Han Chang'an 37 157 100 6000 1500 '7600 City Total 3 7 157 100 6000 1500 '7600

2.2.2 Affected industrial land Located in north of Daxing West Road outside Xi'an Gate, Xi'an Plastic F ctory is a state-owned enterprise, industrial production and office area covering an area of 9 I.24mu and construction area with 73% and 27% of brick-concrete and half-timbered structures respectively some 21,000m2. Ever since the shut down of the factory from 1990s, both some factory buildings and equipments have being rented to other factories nowadays. 2.3 Affected population Land acquisition of the project affects three administrative villages totaling the 224 people

Figureu 2-3 Table of statistics of affected Dersons l~ffectionTypes ISubtotal Affected households Permanent land 15 I Affected population 6 7 acquisition Thereinto: laborers 45 I 1 / ~miaated rural l~ffectedhouseholds 137

Affected population 224 Households affected by both land Total , iacauisition and house demolition 1 I I ~opulationaffected by both landl,, i (acauisitionand house demolition lLU I 2.4 Affected Aboveground Objects Attached to the Land The aboveground objects attached to the land and public establishment affected by the project add up to 11 categories. See details in Figure 2-4.

Table 2-4 Projects Affected Aboveground Objects Attached to the Land and Public Establishments

~ruittree I 1 12000 OtherI trees

Pound mu 3.4

3. Sampling Investigation on Socioeconomic Situation of Affected

Persons and Units

In order to further explore the social and economic development of the project affected area as well as the basic situation of affected population, the Project Office, at the request of World Bank, conducted a preliminary investigation on social economy of the project affected area in September, 2005, providing the basic materials for project analysis. In July, 2006, the Project Office conducted a physical quantity investigation as well as a sampling investigation on socioeconomic situation of affected families. The investigation is conducted in questionnaires and interview, while the sampling investigation is involved in the residents directly affected by the project (accounting for of the total affected households). 3.1 Basic Situation of Affected Villages 1

I 3-1 Table of Investigation on the Basic Situation of Affected Villages I

Lujiakou 523 50 1 490 2000 400 ~ Ximasai 1098 912 2150 1800 1132 ( Tianlu 700 662 680 1900 Village 3.2 Investigation Result of the Basic Situation of Affected Rural Households 3.2.1 Family members ~

People from three villages were involved in the investigation, among hich the agricultural population is 1,244, accounting for 89.4% of the total, females are 6 7, taking 1I 46.5%, and labor force is 974, accounting for 70% of the total.

3.2.2 Analysis of the age distribution of the population Among the investigated population, population under 6 years old is 162, accou 4ting for 11.6%; population between 7 and 15 is 276, taking a percentage of 19.8%; the amoubt of people from 16-60 is 673, accounting for 48.4%; the amount of people above 60 yea 280, taking a percentage of 20.1%. People between 16 and 60 account for more

3.2.3 Analysis of the distribution of education level 1 Among the 1,391 investigated people, the amount of illiteracy and semi-illiterahy is 60 persons, taking 4.3%; that of people with primary school education is 441, accountidg for 3 1.7%; that of people with junior high school education is 471 persons, taking a per entage of 33.8% of the total; the amount of people with senior high school education is 300, aqcountingc for 21.6%. Totally the amount of people with junior high school education or above takes a percentage of 69.8%. After land acquisition, their land will be reduced or completel f lost. However, they will get employed soon after the employment training held by the gobernment.

3.2.4 Analysis of labors' employment situation Of the 1,391 investigated populations, 974 persons are labor force, among whi h 740 persons do farm work at home, taking 76% of the total labor force; and 234 personsr work outside, accounting for 24% for whom the living conditions will not make a great di ference after land acquisition. f

3.2.5 Analysis of annual family income and expenditure situation I

Annual Income and expenditure structure of rural family (see table 3.3) i

Among annual family income sources, agricultural income takes a and income from working outside accounts for 42.4%, which shows households have the experience of working outside. Therefore, land a big difference during the transition from agriculture to adjust to the role change quickly.

Among annual family expenditure, productive expenditure takes a percentage f 18.2%. As for non-productive expenditure, food expenditure accounts for 39.6%, a compar0 tively large proportion; and education proportion also takes a large proportion, which refl Bcts that rural areas attach more and more importance to education. The improvement of edqcationf level helps farmers to adapt to the new environment and employment, to conduct a technical innovation on the remaining land so as to develop efficient agriculture their land. Table 3-3 Structure of Annual Income and Expenditure of Rural Families (20% of

n otal amount ~krcapita (RMB Project . Yuan) Yuadperson) Agricultural income 1 4743 1580 nnual family Non-agricultural income 3500 1167 Income from working outside 3100 1033 Other income 400 133 Productive expenditure 1500 500 ' Non-productive expenditure 6743 2247.6 # Expenditure on food 3265 1088.3 nnual family Expenditure on transportation 476 158.7 Expenditure on education 1170.8 390.2 Expenditure on medicine 1020 340 Other expenditures 8 1.2 27.1 1 Net income ( income-productive expenditure ) 1 6743 1 2247.7 1

4. Law and Policy Framework 4.1 Main Basis of Laws and Regulations on Emigrants Resettlement

The Law of LandAdministration of the People h Republic of China (came into effect on Jan. 1, 1999) The Law of People h Republic of China on Urban Real Estate Administration (came into effect on Jan. 1, 1995) Regulations for Management of Urban House Demolition (came into effect on Nov. 1, 2001) Shaanxi Provincial Regulations on Management of Urban House Demolition Compensation (came into effect on Dec. 1, 2003) Measures of Shaanxi Province on Implementing The Law of Land Administration of the People j. Republic of China (took into effect on Jan. 1, 2000) Measures of Shaanxi Province on the Assignment and Transfer of the Right to the Use of the State-owned Land (took into effect on Jan. 1, 2000) Measures of UniJied Land Acquisition of Shaanxi Province for Construction Project (took into effect on Mar. 1, 2002) Rules for the Protection of Basic Farmland (took into effect on Apr.4, 1996) Temporary Regulations on Xi hn Urban House Demolition Assessment (took into effect on Jun. 10, 2004) Detailed Rules for Implementation of Urban House Demolition in Xi'an (took into effect on Jun. 10, 2004) World Bank Operational Policy OP4.13 Involuntary Immigration (Dec. 2001) and World Bank Operational Policy OP4.12-Annex Table 1 Involuntary Immigration.

4.2 Laws and Policies Related to Emigrant Resettlement 4.2.1 Laws and policies related to Permanent Land Acquisition 4.2.1.1 The Law of Land Administration of the People 's Republic of China

The Law of Land Administration of the People h Republic of China stipulates that any unit or individual, who wants to conduct construction and in the need of using land, has to submit an application for using the state-owned land by law. i

Article 44 Whereas occupation of land for construction purposes involves the conkersion of agricultural land into land for construction purposes, the examination and approval drocedures in this regard shall be required. For projects of roads, pipelines and large infdastructure approved by the people's governments of provinces, autonomous regions and mun cipalities, land for construction has to be approved by the State Council whereas con ersion of agricultural land is involved. Whereas agricultural land is converted into c /nstruction purposes as part of the efforts to implement the general plans for the utilization of 1 nd within the amount of land used for construction purposes as defined in the general plans for cities, villages and market towns, it shall be approved batch by batch according to the a nual plan for the use of land by the organs that approved the original general plans for the uti ization of land. The specific projects within the scope of land approved for conversion shall b ~ approved by the people's governments of cities or counties. I Article 45 The acquisition of the following land shall be approved by the State ouncil: 1. Basic farmland; 2. Land exceeding 35 hectares outside the basic farmland; 3. '0~ ther land exceeding 70 hectares

Article 47 In acquisitioning land, compensation should be made according to the

original purposes of the land acquired. I,

Article 58 In one of the following cases, the land administrative deparhnent{ of related people's governments shall recover the land use right of State-owned Ian4 with the approval of the people's governments that originally gives the approval or the people's governments with the power of approval: 1. Use land for the sake of public interests; 2. Use land for adjustment in re-building old city districts in order to imple~enturban I construction plans; I

Article 46 For acquisition of land by the State the local people's governm$nts at and above the county level shall make an announcement and organize the imp1 mentation after the approval according to the legal procedures. Owners or users of the la d acquired should, within the time limit specified in the announcement, go th ough the compensation registration for acquired land with the land administrative dep rtments of the local people's governments on the strength of the land certificate. j

Article 47 In acquisitioning land, compensation should be made according to the original purposes of the land acquired. Compensation fees for land acqui ed include land compensation fees, resettlement fees and compensation for attachments,1 o or green crops on the land. The land compensation fees shall be 6-10 times the avedage 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 b calculated by dividing the amount of cultivated land acquired by the per capital land eccupied of the unit whose land is acquired. The resettlement fees for each agricultural p rson to be resettled shall be 4-6 times the average annual output value of the three year preceding 17 1 the acquisition of the cultivated land. But the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition.

Whereas the land compensation fees and resettlement fees paid according to the previous provisions are not enough to maintain the original level of living, the resettlement fees may be increased with the approval of the people's governments of provinces, autonomous regions and municipalities. But the combined total of land compensation fees and resettlement fees shall not exceed 30 times the average output value of the three years prior to the acquisition.

Article 66 Land administrative departments of the people's governments at and above the county level shall exercise supervision and examination on violations to the land administrative law and administrative decrees. Supervising personnel in such a regard should be well acknowledged with the land administrative law and decrees, loyal to their duties and justice in enforcement of the law.

Article 70 Whereas land administrative departments of the people's governments at and above the county level have found government functionaries to have committed violations during their supervision and examination, they shall give them administrative punishments whereas the punishments are due. Whereas they do not have the right to handle the cases, they should put forward proposals for administrative punishments to the administrative supervision organs at the same level or at a higher level. The related administrative supervision departments shall mete out punishments according to law.

Article 79 Embezzling or diverting the use of land compensation fees and other related expenses of the units whose land is acquired, criminal responsibilities shall be affixed whereas the case constitutes the crime and administrative punishments shall be meted out whereas the case is not serious enough to constitute a crime.

4.2.1.2 Related policies of permanent land acquisition of Shaanxi Province

1 Measures of Shaanxi Province on Implementing the Law of Land Administration of the People j. Republic of China

Article 6 Those who intends to change land ownership, use right or use purpose according to the law, shall submit application for changing registration to the original land registration organs within 30 days from and on the day being approved.

Whereas mortgaging land use right in accordance with the law, both mortgager and mortgagee shall apply for land use right mortgage procedures to the original registration organs.

The name or address change of land owner or user shall be registered in the original land registration organ within 30 days from and on the day making change.

Article 19 Farmland occupation approved by non-agricultural construction, it shall work under the principle of reclaiming the same amount of land occupied. The land user shall reclaim the amount and quality of land occupied at the request of general plan of land use. Land users who are not in a position to reclaim or fail to reblaim the qualified land, shall pay reclaim fees to the city and county (city) land departments of land location. Cities or counties lack of reclaim resources, fee to the superior land administrative department to organize reclamation.

A special account shall be opened for land reclaim fee to reclaim new land, which s all not be reduced or embezzled. 1 The management measures and fee-collecting standard of land reclamation is stipula ed by the Provincial People's Government. ~t

Article 26 When conducting feasibility study or compiling project proposal for the construction project, the construction unit shall submit land use pre-application t the land administration department same level with the organs approved the project.I The land administration department shall conduct inspection on construction land a d submit preliminary report on construction land use to the construction land use unit in a cordance with the general plan of land use, the annual plan target of land use and the state 1 nd supply policy. Z1 Article 27 After the feasibility study report or project proposal of the being approved, the construction unit shall submit documents of departments to the city, county (city) land administrative departments mentioned land administration departments shall make inspection and procedures and power limit.

The land administration departments shall notice the procedures, standards, basis Qnd results of the examination and approval of construction land. I

Article 28 In submission for approval of construction land, the land addinistration departments of cities and counties (cities) with districts shall compile project report on construction land in accordance with the following stipulations: I

I. Land supply scheme shall be drawn when using state-owned constructio state-owned unexploited land.

11. When using state-owned agricultural land, the schemes of agricultural Ian transfer, farmland supplement and land supply shall be drawn. d~ 111. The schemes of land acquisition and land supply shall be drawn when acquiring construction land or unexploited land owned by the farmers collectively. 1I IV. The schemes of agricultural land transfer, farmland supplement, land acquisiti supply shall be drawn, when acquiring agricultural land owned by the farmers

V. Land supply scheme shall be drawn when land owned by farmers collectivelyis to build township enterprises or rural residential construction as well to build township-vil age public facility and utility construction. And schemes of agricultural land use transfer and upplement land shall be drawn when the construction is involved in agricultural land. 1 The State key construction projects, such as spanned railway, road and water conse ivancy, and etc., which spanned across cities (areas) with districts, shall be organized by the provincial people's government to acquire land on a unified base.

Article 29 The land compensation and resettlement subsidy of arable land acquisition are compensated according to the standards prescribed in the forty-seventh article of The Law of Land Administration of the People's Republic of China. Land compensation and resettlement subsidy, and the over-ground objects attached to the land and young crops compensation of the land acquisition for other use are compensated based on the following standards:

I. Compensation for the arable land is four to six times of the annual production value of the previous three years' average production value of the medium arable land in the county, city or district where the land acquired belongs to. Compensation for the land acquisition for other use is one to four times of the average annual production value of the previous three years production value of the medium arable land in the county, city or district where the land acquired belongs to.

11. The resettlement compensation of the used land except farmland is paid by 30% to 60% of the resettlement subsidy of the medium arable land of the county, city or district where the land belongs to.

111. Young crops compensation is paid based on 40% to 90% of the average annual production value of the previous three years production value of the arable land in which the young crops grew. Houses and other over-ground attachments are compensated in accordance with the factors, such as purpose, structure, use years and the like, to determine type, rank and unit price of compensation. The specific payment standards are prescribed by the city or district government.

If the land compensation and resettlement subsidy based on the previous article cannot make the villagers required settling remain their original living standard, more compensation can be added with the approval of the provincial people's government, but the total amount cannot surpass thirty times of the average annual production value of the previous three years' production value of the land prior to the land acquisition.

2 Rules for the Protection of Basic Farmland

Article 11 Once the basic farmland protected area is determined, any units or individuals cannot change or occupy the land arbitrarily. If national key construction sites of energy, transportation, and water conservancy, etc. have to occupy protection areas, it is required to take from the county agricultural administrative chief department and fill in Application Form for Basic Farm Occupation Permit, and then apply to the provincial land administrative office and fill in Application Form for Basic Farm Occupation Permit after approved by the county department. Following papers are required to hold when applying basic farmland occupation permit.

I. Document of approval on construction projects;

11. Application form for construction land or application form for subscription for land;

111. Pre-submitted agreement on arable land reclaiming fees of occupying basic farmland of 20 protection areas (hereafter referred to as arable land reclaiming fee for short).

Article 12 Within the fifteen days from the day of application acceptance, the prov'ncial land administrative department and provincial agricultural administrative chief depa 4ment put forward their opinions and report them to the provincial government for are ratified, Basic Farmland Occupation administrative department. Only after taking the Basic Farmland unit of construction land user handles the formalities of the procedures prescribed by The Implementation Province.

Article 13 The unit, which is engaged in non-agricultural construction and is apprdped to use and occupy the basic farmland in the protection areas, shall not only pay tax based n relevant laws and regulations but pay the arable land reclaiming fee to the land ad 4inistrative department of the county government. The standards of the arable land reclaiming follows:

For first grade basic farmland, the fee accounts for 80% to 100% of the land co and resettlement subsidy; for second grade basic farmland, 60% to 80%.

Laws and Policies on House Demolition and Resettlement i

4.2.2.1 Regulations on Management of House Demolition & Relocation i

Article 6 The house demolition can only be conducted after the house demolition units get the license.

Article 8 The house demolition management department, which grants the house bemolition license, must, in the meanwhile, publicize the items recorded in the house such as party that is to demolish the house, demolition scope, and form of house announcement. The house demolition demolition unit should publicize and explain to the party time.

Article 22 The party that is to demolish the house should compensate for the p/irty whose house is to be demolished based on this regulation. I,

Article 23 Compensation methods of demolishment shall be in the form od monetary I compensation or house property right exchange. I

Article 24 The amount of monetary compensation is determined by the price asseised by real estate market, being subject to such factors as the location, function, and construction area of demolished houses. The details are stipulated by the local people's govern province, autonomous district and municipalities.

4.2.2 Laws & regulations on compensation for house demolition and relocatipn 4.2.2.1 Rules of Shaanxi Province on Management of Compensation for Demolition & Relocation Article I1 This Rule is applicable to house demolition conducted in State-owned planning area of the Province which meanwhile needs compensation for party whose house is to be demolished.

Article 5 Urban house demolition shall be implemented with the license, whose application, examination & approval, granting and issuance of demolition notice shall be performed in conformity with Regulations for Management of Urban House Demolition by the State Council.

Article 12 The compensation for house demolition shall observe the principle of just and justifiability. The amount of compensation for house demolition shall be determined with reference to estimation price in real estate market.

Compensation shall not be allowed for illegal construction and temporary construction exceeding the duration of service by examination and approval; compensation shall properly be given to the demolition of temporary construction within the duration of service by examination and approval; if there are other rules & regulations in examining and approving construction, observe them.

Article 14 The party that is to demolish the house and the party whose house is to be demolished shall come to an agreement on compensation for demolition within the time limit required in the demolition notice.

The agreement on compensation for demolition of monetary compensation by money shall include basic information of house demolition, compensation amount, and subsidy amount of demolition, fees for demolition and installation of home appliances, type & prompt of payment, time limit of removal, liability for breaching, means to settle disputes and other matters promised by the party that is to demolish the house.

For those who exchange property rights, the agreement on compensation for demolition shall include basic information of house demolition, site, area, tier, function of plane and equipment & facilities of exchanged house, market price of the house demolition and exchanged house, price difference amount & clearing form, transition form & time limit, fees for demolition and installation of home appliances, subsidy amount of demolition as well as temporary relocation, liability for breaching, means to settle disputes and other matters promised by the party that is to demolish the house.

If the house for exchange is forward delivery housing, the maximum transition time limit for tier building shall not exceed 18 months and that of high-rise building shall not exceed 24 months.

The sample text of agreement on compensation for demolition shall be formulated by administrative department of construction of the Province.

Article 15 When the party that is to demolish the house and party whose house is to be demolished can not come to agreement on compensation for demolition, the two parties shall, through consultation, consign a real estate price estimation institution, or the one selected by the party whose house is to be demolished from two such institutions proposed by the party that is to demolish the house, to perform price estimation upon the house demolition. Thereafter, the two parties shall conclude the agreement on compensation for demolition in terms of the estimation results. When holding disagreement upon the estimation results to refuse the conclusion of greement on compensation for demolition, the party that is to demolish the house can,B apply to administrative departments of house demolition at municipal and county level for abbitration; provided that administrative departments of house demolition at municipal and cowlevel fall into the demolished party, then the party that is to demolish the house can ap ly to the municipal or county people's government for arbitration, which shall be work out Pwithin 30 days after receiving the application. I1 The administrative departments of house demolition at municipal level and prefeQture level establish expert committee for house demolition. The municipal or coun people's governments as well as administrative departments of house demolition at mun'cipal and county level shall make arbitration in terms ofthe estimation results by experts co7 house demolition.

If disagreeing with the arbitration, the party that is to demolish the house can ap#eal to the people's court within three months after receiving the arbitral award. Provided tha the party that is to demolish the house has given monetary compensation or provided reloca 1ion house for demolition or working house used in resettlement to the demolished party, the Cemolition I shall not be stopped during period of litigation. I

4.2.2 Detailed Rules for Implementation of Urban House Demolition in Xi'an I Article 2 This Rules is applicable to house demolition conducted in State-owned ladd in urban planning area of the City in which the party whose house is to be demolished needs to be compensated and relocated. I

Article 3 the Municipal House Administrative Department is the department in charge of house demolition of the City. The Administrative Office of Xi'an City on Rese House demolition takes charge for the management of urban house districts as Xincheng, Beilin, Lianhu, Yanta, Weiyang, and Baqiao.

The administrative departments of house demolition in such districts as ~inton~iYanliang, and Chang'an as well as the counties directly under the Municipal Government is ifi charge of the house demolition management in the districts, and meanwhile, they should accept the business instruction given by both the department in chief and ofice of u+an house demolition. :

Such administrative departments of planning, construction, land, municipal security, industry & commerce, education, labor and social security, etc. as and County People's Governments shall cooperate to do well the demolition according their own functions.

Article 13 The party that is to demolish the house shall formulate relocation plan schedule for house demolition, which shall include: the bound of demolition, situations of emolished house (i.e. usage property, area and property right), executive department for emolition, name list of corresponding personnel, compensation plan (i.e. estimationh fund for compensation for demolition, source of fund for compensation and relocation, houde source of property right exchange, transition house or other temporary measures for transit'on), means to carry out demolition, time limit and schedule for house demolition (i.e. Ieasures of security and environmental protection). Article 15 The party that is to demolish the house shall, according to law, signs agreement on compensation for demolition which shall specify the following contents:

Property right, address, area, usage property and structure, etc. of the demolished house;

The mode and standards of compensation and clearing form.

Time limit for removal;

For those provided with relocation house, such conditions as property right, address, area, usage property, structure, and modes & time limit of transition shall be specified.

Liabilities for breaching and modes for addressing disputes;

Other agreed matters.

The sample text of agreement on compensation for demolition shall be uniformly printed according to administrative rules on demolition of the City.

Article 25 Both monetary compensation and exchange of property rights are available to carry out compensation for demolition. The party whose house is to be demolished can select modes of compensation for demolition independently unless the Rule has other regulations.

Article 26 For those resorting to monetary compensation, the amount shall be determined by market price of real estate in accordance with such factors as location, usage property, and building area of property right, etc. For those with exchanged property rights, other than renting private house, the resettlement of both residence and non-residence houses shall be based on the floor space of the house to be demolished. The resettlement of price shall be performed in accordance with the following rules:

(I) For house with exchanged property rights, the resettlement shall be performed based on balance out between estimation price of real estate market of both demolished house and of the house for resettlement.

(11) Provided that leaseholders and property rights owners who contract residential house give up their property rights, the self-resided part of the building area of residential house for relocation shall be settled in terms of cost price required in house reform regulations of the due year; the part that exceeding self-resided area (excluding the added area regulated in Article 34 of the Rule) shall be settled in terms of estimation price of real estate market of resettlement house. The evaluation of real estate market price shall be determined in compliance with Temporary Provisions on Price Estimation of Urban House Demolition in Xi 'an.

Article 37 If the party that is to demolish the house can not provide house for transition within the transition period regulated by the agreement and the party whose house is to be demolished and leaseholder support themselves through the transition period, the party that is to demolish the house shall provide subsidy for transition according to the following standards: I (I) Standards for transition subsidy of house demolition are as follows: I

1. As for the house located within the first ring road with an area of less than 30m2 (inclusive), the subsidy shall be RMB nine Yuan for each square meter per month; the one with an area of over 30m2, the subsidy for that 30m2 shall be RMB nine Yuan for each square /meter per month and the subsidy for exceeding part shall be RMB seven Yuan for each square meter per month. ,

2. As for the house between the first ring road and the second ring road with an area of less than 30m2 (inclusive), the subsidy shall be RMB seven Yuan for each square meter er month; the one with an area of over 30m2, the subsidy for that 30m2 shall be RMB seve Yuan for each square meter per month and the subsidy for the exceeding part shall be RMB five Yuan for each square meter per month. I 3. As for the house between the second ring road and express way circling Xi'an ~jtywith an area less than 30m2 (inclusive), the subsidy shall be RMB six Yuan for each square meter per month; the one with an area of over 30m2, the subsidy for that 30m2 shall be RNIE) six Yuan for each square meter per month and the subsidy for exceeding part shall be RMB four Yuan for each square meter per month.

4. As for the house outside the express way circling Xi'an City with an area less han 30m2 (inclusive), the subsidy shall be RMB five Yuan for each square meter per mont ; the one with an area of over 30m2, the subsidy for that 30m2 shall be RMB five Yuan for e ch square meter per month and the subsidy for exceeding part shall be RMB three Yuan for e ch square meter per month. 1 (11) The close of business and production caused by demolition of house for prodhction and business, the compensation shall be calculated and provided in full amount accord ng to total wages (basic wage and national subsidy inclusive) of staff in active service. he actual number of staff in active service of the unit whose houses are to be demolish 1d shall be determined in terms of the number in the pay list as well as the staff who pay the social security expenditure. As for those with house for production and business in other places, the staff number shall be determined in accordance with average capacity of staff oft business area in the demolished unit.

(111) The transition fee for other house beyond the regulations in (I) and (I!) shall be performed in accordance with the following standards: I1

1. For houses located within the First Ring Road, the compensation shall be RMB 40 Yuan for each square meter per month.

2. For houses located between the First Ring Road and Second Ring Road, the co+pensation shall be RMB 25 Yuan for each square meter per month. I

3. For houses located between Second Ring Road and Expressway Circling ~i'dnCity, the compensation shall be RMB 15 Yuan for each square meter per month. 1 4. For houses located outside Expressway Circling Xi'an City, the compensati RMB 10 Yuan for each square meter per month. Article 38 The party that is to demolish the house who provides transition house, completed apartment or monetary compensation will no longer pay transition compensation fee. However, as for the situation in which the demolition of house for production and business caused temporary close of production and business, the party that is to demolish the house shall pay transition compensation fee for corresponding time in which business and production are closed in accordance with standards formulated in item (11) of Article 37 with reference to factors such as scale of demolition. If the time of close of production and business is less than a month shall be calculated as a month.

The leaseholder shall pay transition house rent if the party that is to demolish the house provided the leaseholder with transition house.

Article 39 If failing to pay the transition subsidy within the transition time limit required by the agreement on compensation for demolition, the party that is to demolish the house shall, from the overdue month, pay the compensation subsidy at least two times as many as primary compensation; if six months are overdue, the party that is to demolish the house shall, from the 7th month, pay the compensation subsidy at least three times as many as primary compensation. If the transition fee is paid in the form of wage required by item (11) in Article 37 of the Rule, the overpayment of transition subsidy shall be granted in accordance with the agreement on compensation for demolition.

The party whose house is to be demolished and leaseholder provided with transition house by the party that is to demolish the house, from the overdue month, can stop paying the transition house rent. In addition, the party that is to demolish the house shall, from the overdue month, pay the transition subsidy for the party whose house is to be demolished as many as 20% of the transition subsidy standards stipulated in Article 37 of the Rule.

Article 40 The party that is to demolish the house shall pay subsidy of removal for the party whose house is to be demolished and leaseholder in accordance with the following standards:

(I) As for the party whose house is to be demolished and privately or individually-owned business, the compensation for removal shall be RMB 1,000 Yuan per unit; for those who are provided with completed apartment for relocation or monetary compensation, the subsidy shall be RMB 500 Yuan from demolition per unit.

(11) As for institutions, subsidy shall be given in terms of removal scale and with reference to related regulations on freight price by the State, Province and the Municipality.

Article 41 If removal of equipments are involved, the removal expenses shall be paid according to related regulations on freight price by the State, Province and the Municipality. As for temporary deposit of equipment and materials, the subsidy for temporary storehouse rent shall be paid in terms of the actual amount of deposit.

Article 42 As for relocation for house demolition, the relocation shall be done in terms of household scale based on building area of demolished house. The minimum scale of household based on building area for relocation house shall be 45m2 and the difference between any two household scales shall be at least lorn2. For over a pair of couples (inclusive) who share a private house which also accords related regulations on property rights separation shall be provided with various units of house for relocation. As for the part exceeding the area required by property right certificate, the house for relocation shall be calculated with reference to estimation price.

The standards to classify high and low floors of multi-storied building are as and second floors of a three-storied building fall into low floors with the floor; the first, second and third floors of a four-storied building fall into fourth one as high floor; the first, second, third, fourth floors of a into low floors with the fifth one as high floor; the first, second, six-storied building fall into low floors with the fifth and sixth classification of high and low floors of high and super high relocation scheme according to actual situation.

4.2.2.3 Temporary Provisions on Price Estimation of Urban House demolition i Xi 'an city 1 Article I The Provision is formulated with a view to standardizing price estimatio of urban house demolition, maintaining the lawful rights and interests of involved p rties and guarantee smooth implementation of demolition in accordance with Guiding Co ments on the Estimate for Urban Renewal and Rehousing by the State and Detailed Rules for Implementation of Urban House Demolition in Xi'an and with reference to actual ~ onditions of the City. I The house less than seven stories (inclusive) and house less than three stories business and ofice as well as supporting storehouse and hotel house on the in the City shall be estimated by means of base price correction, that estimation in terms of base price of demolished area and related promulgated by the Municipality.

(I) Estimation formula for residential house Compensation price of residential house=district base price x (I+correction co ficient of comprehensive environment) x (I+ price adjustment coefficient of floor di erence) x (]+price adjustment coefficient of directions variation of unit residential house) xbuilding area + replacement cost new less depreciation (RCNLD) of house and attachm nts +land transfer fee of house with completed land transfer procedure calculated in terms ofI $ervice life of spare land.

1. The district base price is determined by the municipal house administrative relative administrative departments of price, etc. with reference to factors such of residential houses in different location and resettlement price, adjusted by the Municipal Government, with land usage based on base price is executed according to the Annex Table 1.

2. The correction coefficient of comprehensive environment shall be det accordance with the location and environmental conditions of demolished adjustment magnitude shall be carried out according to Annex Table 1.

3. Price adjustment coefficient of difference in floor shall be implemented in acco dance with Annexed Table 4. 1 4. Price adjustment coefficient of building orientation difference of unit be implemented in accordance with Annexed Table 5 and 27 adjusted.

5. Replacement cost new less depreciation (RCNLD) of house and attachments shall be implemented in accordance with regulations of related documents.

(11) Estimation formula for business house

Compensation price of business house=district base price x (l+correction coefficient of comprehensive environment) x (correction coefficient of frontage) x (1+ price adjustment coefficient of floor difference) xbuilding area + replacement cost new less depreciation (RCNLD) of house and attachments +land transfer fee of business house with completed land transfer procedures calculated in terms of service life of spare land.

1. The district base price is determined by the municipal house administrative department and relative administrative departments of price, etc. with reference to factors such as market price of residential houses in different location and resettlement price, promulgated and regularly adjusted by the Municipal Government, with land usage based on allocated land. The district base price is executed according to the Annex Table 2.

2. The correction coefficient of comprehensive environment shall be determined in accordance with the location and environmental conditions of demolished house and the adjustment magnitude shall be carried out according to Annexed Table 2.

3. The business house with single frontage shall be corrected according to frontage in the Annexed Table 6-1.

The business house with two frontages (including more than two frontages) shall be first corrected on prime frontage (high district level) in accordance to the Annexed Table 6-1 and then corrected on secondary frontages in accordance to the Annexed Table 6-2.

4. Price adjustment coefficient of floor difference of business house shall be implemented in accordance with Annexed Table 7.

5. Replacement cost new less depreciation (RCNLD) of house and attachments shall be implemented in accordance with regulations of related documents.

(111) Estimation formula for supporting storehouse and hotel of house for office and business

Compensation price of supporting storehouse and hotel of house for office and business=district base price x (l+correction coefficient of comprehensive environment) x (I+ price adjustment coefficient of floor difference) xbuilding area + Replacement cost new less depreciation (RCNLD) of house and attachments +land transfer fee of house with completed land transfer procedures calculated in terms of service life of spare land of supporting storehouse and hotel of house for office and business

1. The district base price is determined by the municipal house administrative department and relative administrative departments with reference to factors such as regulated and resettlement market price of house for office, supporting storage of house for business, and hotels of various districts, etc., promulgated and regularly adjusted by the Municipal Government, with the land usage based on allocated land. It shall be implehented in accordance with Annex Table 3. i

2. The correction coefficient of comprehensive environment shall be detehined in accordance with the location and environmental conditions of demolished house and the adjustment magnitude shall be carried out according to Annex Table 3. 1 3. Price adjustment coefficient of floor difference shall be implemented in accor Annex Table 8.

4. Replacement cost new less depreciation (RCNLD) of house and attachments shall be I implemented in accordance with regulations of related documents. I

(IV) As for the land use right held by the demolished party, if its land area e$ceeds the building area of house, it shall be evaluated by district base price of compens tion area concerning land use rights, and be carried out based on the Annexed Table 9. a 4.3 Resettlement principles on migrations of the Project The project of resettlement of affected residents should abide by the principles in accordance with relevant laws and regulations stipulated by the concerning involuntary resettlement issued by the World Bank: (I) Pay more attention to resettlement of affected residents and carry o u t relevant compensation polices to improve or at least recover production and living standard f affected residents; (2) Plan for resettlement of affected residents should be in accordance with local land improvement as well as nation economy and social development program; correct1 deal with the relationship among the state, collective and individual in a comprehensive wa and give overall consideration to it. I (3) Plan for resettlement of affected residents should be authorized in accor d ance with relocation object index and compensation standard. Construction scale and st ndard for resettling the affected residents should abided by the original ones. And no invest ent gap is to occur in accordance with limitation program. It is necessary for local gove ment and relevant departments to issue the investment problems relating with the develop ent, scale expansion and standard improvement and long-term plan; (4)It is necessary to coordinate with affected residents in determining the plan1 or resettlement and stipulating varied compensation standards to benefit the resident (5) Plan for resettlement of affected residents should make full use of local r1 sources to foster agricultural construction adjustment, improve conditions of farmland irrigati n, elevate land use capability, strengthen the potential power of agriculture, so as to keep the production and living level of the immigrants; (6) According to the principle of "benefit production and facilitate life" t make the program plan. (7) Plan for resettlement of affected residents should combine wit regional construction, resources exploration, economic development and environmental 1 protection. And it should be carried out in a practical way in accordance with the concrete situ "tion, so as to stipulate measures for the recovery and development of production and living of immigrants, and create chances for their self-development.

The resettlement policy on migration implemented by the Project is made in terms of related regulations & laws formulated by People's Republic of China, Shaanxi Provincial People's Government, Xi'an Municipal People's Government, and the World Bank. 5. Compensation Standards i

Standards of compensation for various impacts of the project are as follows accordiing to the stipulation of the law framework:

5.1 The rural dwelling houses and factory work demolition I

To reasonably and correctly formulate compensation standards and render elocation households with compensation eq'uivalent to replacement prices of their houses we have made the detailed investigation and analysis on replacement prices of bric 4- concrete houses and brick-wood houses in the area affected by the project while carrying out practical article index investigation. According to the investigation and analysi , the cost of brick-concrete houses is RMB 923 Yuan per square meter, that of bric -concrete houses RMB 788.3 Yuan per square meter, and that of workshops RMB 8211 Yuan per square meter. With a view to price rise in the following two years, we determin the cost of brick-concrete houses is RMB 1,000 Yuan per square meter, that o !that of brick-concrete houses RMB 900 Yuan per square meter, and that of workshops RMB 900 Yuan per square meter. In addition, according to different decorations and differ nt grades of materials used, we decided on the fluctuation range of standards of compensation for brick-concrete structure houses as RMB 900 Yuan to RMB 1,100 Yuan, a 1d that of brick-wood houses RMB 850 Yuan to RMB 950 Yuan, and that of workshops MB 700 Yuan to RMB 900 Yuan. See Table 5-1 for replacement prices of brick-concre P e houses, Table 5-2 for replacement prices of brick-wood houses, Table 5-3 for replacement prices of workshops, and Table 5-4 for compensation unit price of houses and auxiliary establishments. Analysis and calculation of unit area replacement price of brick-concrete

Table 5-1 1 Using quantity Unit price Item Unit of unit area (Y uanlunit) I , I. main building materials 483.00 1. Cement t 0.22 3 80 83.60 2. Yellow sand t 0.8 45 36.00 3. Blindings 4. Steel 0.020 5200 1)04.00 I 5. Timer m3 0.06 940 46.40 6. Brick 400 0.35 1140.00 1 7. Plaster kg 35 0.2 7.00 , 8. Quarry t 0.8 3 5 $8.00 11. Other materials 23 0 111. Comprehensive fee 210 1 Total 1 423.00 Note: "Unit" in the table is determined according to material prices of Xi'an City in Material I 3 1 I Price Information from March to April 200; 2. "Other materials" in the table includes aluminum alloy doors and windows, glass, paint, and other hanging devices; 3. "Comprehensive fee" in the table includes expenditures on manual work, material loss, and machines; 4. Analysis of replacement price of brick-wood houses is the same as above. Analysis and calculation of unit area replacement price of brick-wood houses Table 5-2 Using quantity Unit price Item Unit Amount (Yuan) ofunitarea (Yuadunit) I. main building materials 378.30 1. Cement t 0.18 380 68.40 2. Yellow sand t 0.8 45 36.00 3. Blindings t 0.6 3 5 21.00 4. Steel t 0.005 5200 26.00 5. Timer m3 0.06 940 56.40 6. Brick 400 0.35 140.00 7. Plaster 8. Flat tile 17 1.5 25.50 11. Other materials 200 111. Comprehensive fee 210 Total 788.30

Analysis and calculation of unit area replacement price of workshops Table 5-3 Using quantity Unit price Item Unit Amount (Yuan) of unit area (Y uadunit) 1 I. main building materials I I 1 I 48 1.OO I 1. Cement t 0.22 3 80 83.60 2. Yellow sand t 0.8 45 36.00 3. Blindings ti 0.8 35 28.00 4. Steel st 130.00 1 5. Timer I m3 1 0.06 1 940 I 56.40 1 1- 1 6. Brick 1 7. Plaster kg 3 5 0.2 7.00 ' 11. Other materials 130 111. Comprehensive fee 2 10 Total 821 .OO

Table 5-4 Compensation Standards on Demolition of Rural Residential Houses and Factory Workhouses as Well as the Auxiliary Establishments ]standard (RM~ $ranch Proiect< for Housesunit yuan) 1 Protection Project of Ha ynasty Roads of Chang'a City

5.2 Acquired Collective Table 5-2 Compensa andards on Permanent Land Acquisition Unit: RMB Yuadmu Average of Annual Per Capita Land Village Name Farmland Total Multiple C arges and R settlement (mu) Three Charges S bsidies Per Capita Years(RMB ( B Yuan) 4180 9 15 6 700 Ximazhai 1.24 4300 9 6 15 Tianlucun 0.85 4240 9 6 15 Average Annual Output of Farmland in the Previous Three Years is gained according to the data in 2003. It is checked and confirmed by the local relative administrative depar~mentsthat the average output of farmland in the year 2004, 2005 and 2006 are more or less tte same, so the data is stilled quoted here.

The acquired industrial land of 93.24mu will be compensated according to it industrial output and profit benefit, being RMB 281,300Yuadmu. 41 5.3 Over-ground Objects Attached to the Land See table 5.5 for the compensation standards on various kinds of attachments. ~

~~uan- Compensation Standards Category Unit (RMB Yuan) Pound mu 18000-22000 /F- rui0one 130-170 I I I I 1one

6. Resettlement Scheme 6.1 Recovery of Permanent Land Acquisition 1. Land Acquisition Influence Analysis Luj iakou 1501 1400 10.80 (42.5 10.71 I Ximazhai 912 11132 1.24 105.5 1.13 77 69 Tianlucun 662 1560 0.85 65.9 0.75 42 25

As can be seen from the above table 6-1, with former total farmland being 400mu and acquired farmland being 42.5mu, the land influence rate of acquisition of Lujiakou is 10.6%; former total farmland being 1,132mu and acquired farmland being 105.5mu that of Ximazhai is 9.3%; former total farmland being 560mu and acquired farmland being 65.9mu, that of Tianlucun is 11.7%. From the above data we can see that the influence on the three villages is not significant.

2. Income Influence Analysis: As Ximazhai is the village with maximum acquired land, an analysis on the income influence on Ximazhai will be conducted in the following.

The principal planting categories in the acquired land are poplars, peach trees and nurseries, with the coverage of poplars being 720mu, peach trees being 332mu and nurseries being 8Omu. With the planting of poplars not yet receiving any economic benefit and the annual net income of peach trees less than RMB 1, 000Yuan/mu, the annual income of the acquired land is more or less l,OOOYuan/mu, deducting the cost of about RMB 5OOYuan/mu, the annual net income being RMB5OO Yuan. The per capita farmland decrement being 0.1 lmu, the per capita decrement of agricultural income=per capita farmland decrement xannual net income of farmland=O. 11 x500=55(RMB Yuan)

As can be seen from the calculation, the per capita income decrement in even the area with maximum acquired land is merely RMB55Yuan. As there isn't yet any direct income for the time being, most villagers go out to work for others, thus farming is not the main pocketbook. Besides, the quantity of land acquired is quite limited, so basically there won't be much influence on the income of the local residents.

3. Income Recovering Measurement

Through sufficient consulting with the villagers, most of them agreed to readjust the assignment of farmland. After acquisition, the villagers' committee will readjust the farmland according to the family number of each household within the village. After readjustment, land compensation charges and resettlement subsidies will be assigned equally and the compensation charges on green crops and ground surface attachments will be released directly to their property right holder.

The affected villages can get a compensation of RMB 2.69016 million Yuan including the land compensation and the resettlement subsidy, among which Lujiakou get RMB 501,500 Yuan, Xijiazhai RMB 1.37 15million Yuan and Tianlucun RMB 8 17,160 Yuan. The per mu farmland minimum and maximum compensation including the land compensation and resettlement subsidy are respectively RMB 11,800Yuan and RMB 13,000 Yuan, and the compensation charge of green crops is RMB 900 Yuantmu.

With the land compensation in hand, the villagers can undertake individual monthly income of RMB600-700 Yuan. As regards the 10% or so farming, they can improve their agricultural income by hiring farmland

Resettlement for rural residents 1

Immigrants to be removed will be settled by means of scattered allocation village in accordance with local plans. And according to relevant regulations Shaanxi Land Management Law, the area of new residence base should not 200m2.

As shown in the will survey: Regarding convenient transportation as the most consideration for living after removal, to-be-removed residents hope to live near place of the community. Thus, most of the settlements of the project are to be the roads after reconstruction, and near their original houses, a good method solve traffic problems related to removing and allocation, but also create the production and living of the residents after allocation.

Owing to the fact that residents to be removed shall be allocated inside t e original village, current administrative management system shall not be changed and be stil under the management of the former offices of streets and villages. Based on the willing o !removing residents, new settlement can be formed through either rebuilding first and di mantle or rebuilding as dismantling, and new houses for residents of removing will be 500 4from the original ones. They can still live in their original houses when reconstruct them by hemselves or constructed by qualified construction enterprises consigning according to the'r\ uniform program requirements. As to old materials left after dismantling, they belon to those immigrant households, with which they can deal with them at will, or even use th! m to build new houses. And money for using the old material shall not be reduced f+rm house compensation fees that they obtain. \

Owing to the fact that acquisition for project construction does not conclude s service facilities like schools and medical spots, the new-comers can make full use original ones without re-setting up; and the distance from resettlement location original social service facilities after removal are yet the same.

Making comprehensive analysis of the geological location, the amount of land the income of villagers of every village, the relocation workgroup will, on the adapting to the opinions from the majority of the relocated households and representatives, respect the relocated households' choice and adapt for the loss in cash or other measures to restore the production; and practical technical training programs for the relocated their working capability and self-development; provide in cash with the whole relocation subsidies and land land requisition. Since the relocation scheme of every village is made in accordance with the opinions from the majority of the relocated households, if several residents don't agree with the scheme and want to be relocated in another way, the project will endeavor to solve such problems as soon as possible. As for villages which are compensated in cash for the relocation work, if several relocated households want to have land for agricultural production, the relocation office will help them obtain the land for continual agricultural production; otherwise, if the relocated households are willing to be compensated in cash and shift to do business, they will, provided that they have experience and capacity of conducting business, obtain the compensation cash equal to the relocation subsidies upon the application and notarization.

6.2 Policy on resettlement for rural relocated residents As for the rural houses affected by the Project, two ways are adopted to undertake relocation work based on intention of affected peasant households:

6.2.1.1 Monetary compensation

Compensation shall be paid in terms of replacement cost. The houses affected by the Project and monetary compensation shall be paid in terms of existing building area with the standards as RMB 900 Yuan per square meter. (Calculated according to the available construction area, and to be compensated abided by relevant standards)

6.2.1.2 Exchange of property rights Provided that the demolished household is unwilling to accept monetary compensation, then relocation house shall be constructed between Weiyang Palace and Changle Palace, which is in the south of Arms Warehouse within the City Wall. In addition, the resettlement shall be done by balance out between the real estate market price of demolished house and the real estate market price of relocation house.

6.2.2 Policies on compensation for land acquisition and laborer allocation

Policies on compensation for land acquisition

(1) For those whose land is acquired, compensation shall be paid in terms of the primary function of the acquired land. The compensation fee of land acquisition shall include land compensation fee, resettlement subsidy and compensation fee of over-ground objects which are attached to the land and young crops. And the compensation fee of over-ground attachments and young crops shall be given to their owners.

(2) As for rearrangement of land within the group based on head, the land compensation fee and relocation subsidy shall equally and averagely distributed to farmers of the group, and the compensation fee of over-ground attachments and young crops shall be directly granted to property rights owners.

(3) The compensation fee for farmland acquisition shall be paid as many as nine times of annual average production value of the previous three years. (4) The relocation subsidy for farmland acquisition shall be calculated by six timesof annual average production value of the land. I

Policies on allocation of laborers II

(1) After receiving compensation fee, these laborers can go on with current occupa ion. Also, the fee can be used for individually-owned business. As for those peasant househol 4 s who are willing to stay in the countryside to operate contracted land, the villager groups adopt some measures to help farmers resume production, adjust industrial structure, wcarry out industrial operation, and increase land production value so as to finally living standards. Meanwhile, the land management departments shall and villager groups with land acquired to undertake allocation agricultural and sideline production and establishment of the towns and villages will hold employment trainings affected farmers, organize migrant workers to go external information on working outside for peasant households who are affected. I

(2) The project affected laborers shall be properly allocated. 6.2.3 Policy on affected over-ground objects attached to the land

The affected infrastructure and over-ground attachments shall be paid in terms of rdplacement cost principle. See details of compensation standards in Chapter V. ~ 7. Public Participation

7.1 Strategy of Public Participation According to municipal, provincial and national policies and regulations as regards the policies and regulations on relocation and resettlement, in view of the protection of lawful rights of emigrants and units being removed and the reduction of disputation and dissatisfaction, according to the reformation and construction nature of the Project, for further improvement of detailed rules as regards the relocation and resettlement of the Project and better planning for the resettlement of emigrants, and well implementation of organizational assignment to realize the goal of settling the emigrants properly, great attention will be paid to the participating and consulting of emigrants as well as to the widespread listening to the suggestions of emigrants.

During the feasibility study in the preparation period of the Project, the Project Ofice has for many times asked for the advices and suggestions on the resettlement of emigrants in the Project through consulting the government of Tongnan County, the Development Planning Commission of Tongnan county, the mass bodies, the residents in the Project district whose houses are relocated and the villagers' committees of the two villages involved in the land acquisition.

From May, 2006 to July, 2006, the Project Office organized people and conducted a basic investigation on the houses situation and social economy within the area scope of acquisition and relocation of the Project, in the process of which some relative residents participated and put forward advices on the Project scheme and the acquisition compensation as well as the emigrants' resettlement which has been fully considered during the planning of Project design and emigrants resettlement.

From June, 2006 to July, 2006, during the quantity investigation on the Project influenced practicality, the Project Office organized a special investigation team, all the relative immigration representatives have participated. The Project Ofice also listened to the advices of villagers' committee and the immigration representatives on the acquisition compensation as well as the emigrants' resettlement and conducted extensive consulting as well as simultaneously conducted the investigation on social economy and public opinions and psychology. During the investigation of social economy, a door-to-door investigation has been conducted to get the information of emigrants' resettlement willingness and their attitude toward the Project. The full-sided investigation formed a foundation for the planning of emigrants' resettlement.

In the future, public involvement will stilled be encouraged by taking the form of the following procedures and methods:

Emigrant's representatives participate in the work of demolition and resettlement.

Immigrants' representatives are elected according to proportions to coordinate the villagers' committee with the extensive request on the demands and advices of emigrants and listen to rational suggestions as well as conduct periodical communications.

During the process of discrete investigation on houses and their attachments, the determining of compensation standard, the negotiation on relocation and compensation and resettlement, 38 the construction and assignment of houses for resettlement, etc., the villagers' committee and emigrants' representatives will choose the above items to participate in order to fullly reflect the interest and advices of emigrants and ensure the fairness and rationality a/s well as transparency of the resettlement of emigrants involved in the Project. i

(2) The negotiation between the property right holders and the relocation reside final decision of the methods of resettlement.

(3) Negotiating Meetings 1

Conversaziones will be held six months prior to the demolition. It will be participa ed by the emigrant residents, the villagers' committee, the women representatives (th women representatives should account for more than 30% of the total number), etcI to make centralized introduction and listen to their opinions and advices. ~ (4) Mass Meetings i

Three months before the acquisition and removal, continue to make explanations to local residents on the relative policies, regulations, and resettlement schemes, etc to make them early informed and early prepared. , (5)Propagate and report the relocation policies of the Project through media. ~ (6) Make announcement on removal i The principal contents of the announcement: the brief introduction of the Project, t acquisition and removal, the policy on the resettlement of emigrants compensation standards), the agencies in charge of the emigrants' on the relocation time of dwelling residents, the rights and duties and appealing, inspection and evaluation, etc. (7) Publicizing of emigrants' resettlement plan ~ Place the emigrants' resettlement plan authorized by the World Bank in the municipal emigrants' resettlement office and library as well as make announcement in the pri cipal local newspapers to make it available for emigrants and non-governmental organizationsri to consult. (8) Immigration information handbook ~ Before the implementation of the Project, the relocation office will send the migration information handbook to the influenced villages which can be fetched from th t villagers' committee, in which the main contents are as following: survey of the Project, i the Project, compensation policy, implementation agencies, appealing channels,

7.2 Survey on Public Opinion 1 See Table 7-1 for the Results of Public Opinions and Suggestions 1 ~ [NO.1 Questions Answers Results (%) 39 (1) (2) (3) (4) (5) 1 Are you clear about the (1) Clear (2) Not very clear (3) 100 prospectus construction Unclear of the Project?

2 Do you approve of the (1) Approve (2) Disapprove 96 4 construction of the (3)Whatever Project? 3 Who do you think will Country (1)Yes 10 be the beneficiary of the (2) No construction of the Collective (1)Yes 95 Project? (2) No Individuals (1)Yes 5 5 (2) No 4 The benefits brought to (1) Improvement of living 100 40 you by the Project. environment (2) Improvement of working environment (3) Increase of job opportunities (4)Favorableness to body health 5 The unfavorable (1)None 85 10 5 influences the Project (2)The influence on the traffic by brought to you. the implementation of the Project (3)The possible economic loss caused by the relocation of houses (4)The possible decrease of income caused by the acquisition of land (5)Other unfavorable influences 6 Do you know about the (1) Know 70 10 20 policy on the (2)Know something compensation and (3) Know nothing resettlement of acquisition and relocation 7 What kind of (1) Build Individually 100 resettlement form are (2) Unified building and YOU expecting after resettlement Wrelocation of houses? (3) Resettlement by currencies 8 What kind of (1) Conversion of agricultural land 1 2 1 93 3 resettl~mentform do to residential or commercial land , you expect after (2) Employment in the second indusw and te*ialy industry choices permitted) (3) Readjustment of land (4) Resettlement with Currencies --- 9 What kind of help do ( 1 ) Skills training 10 5 85 40 NO. Questions Answers Results (?4) (1) (2) (3) (4) (5) you expect after ( 2 ) Information of employment acquisition? market (3 ) Employment post I I

process o f acquisition and relocation, do you

As can be seen from the statistics of the survey in construction of the Project and were fully prepared for the acquisition and willing to accept the acquisition and relocation as well as the residents known about or know something about the policy of for the acquisition and removal. Besides, through have been aware that when their lawful rights were channels. 7.3 Public Participation and Policy Transparency

Table 7-2 The Participation Process of the Affected Mass Remark Time Place Participants Contents S Relocated Ximazhai'Lujiako households and Attitudes and opinions to the 2008'2 u, Tianlucun the affected construction of the Project. villagers Ximazhai, Villagers and members ,fAttitudes and opinions to the 2008.3 Lujiakou, construction of the Project. Tianlucun Villagers' 1 Villagers and Announcement of acquisition and Ximazhai, members of relocation plan, hearing Lujiakou, of. 2008.3 Villagers' opinions from villagers' Tianlucun Committee representative s Announcement of acquisition and Ximazhai, relocation and possible Relocation compensation standards, hearing 2008.3 Lujiakou, households Tianlucun of opinions from villagers' representatives Locations Peasants whose Announcement of relocation plan 2008.3 alongside soil lands are to be and hearing of villagers' preparation sites acquired representatives

Table 7-3 Process of the Publicizing of Policies Publicizing mode Publicizing spot and Publicizing Date Documents and used language ~ Locations involved in Introduction to engineering Villagers' 2008.2 -2008.3 the acquisition and related to the Project Representatives relocation Conferences General introduction on the Office of Xi'an relocation work of the Oral Introduction 2008.3 -2008.4 Municipal Committee Proiect of CPC Municipal Houses Presswork 2008 Relocation households Relocation Policy andb book on resettlement o Presswork After the check and' emigrants I approval of the World Bank 1 Publicizing of notice on the After the check and planning of emigrants Presswork approval of the World Bank resettlement Report on the planning of After the check and I Presswork resettlement of emigrants approval of the World Bank ~ I

8. Appealing Procedures

Due attention will always be paid to the participation of emigrants during the pl tting and implementing of the emigrants' settling plan. An appealing mechanism has been e i tablished. The following is the appealing procedures of emigrants. r

within one week.

aspects of the immigrants' resettlement.

The above appealing channel will be informed to emigrants through meetin s or other channels to let them fully aware of their rights of appealing. Besides, mass media ifill be used to intensify propaganda and news reports and the advices and suggestions from all aspects will be tidied up to be information item to for timely research and treatment by emigrants' agencies of all levels. 43 9.0rganization Institution & Responsibility

9.1 Execution institution The implementation institution of the project is Xi'an Development & Reform Commission, which sets up a leadership group responsible for deciding significant matters, instructing and supervising the implementation institution's works, ensuring the respect for and protection of various policies and rules and legal rights of migrants. The leadership group administers an office responsible for daily works.

9.2 Implementation Institution The implementation institution of the project is Xi'an Infrastructure Facility Construction & Investment Co., Ltd., which is responsible for the project's land requisition, relocation, and coordination, and fulfillment of various policies concerning migrant relocation. The company sets up a land requisition and relocation office, whose responsibilities are: 1. Be responsible for organizing and coordinating land requisition compensation and relocation and sign requisition and relocation agreement with the demolition and relocation coordination office of Weiyang District according to decisions of Xi'an Municipal People's Government and the project leader group; 2. Investigate and study requisition and relocation, listen to advices of affected units and individuals, accept various complaints and appeals, and make replies and or treatment; 3. Supervise and check the payment and use of land requisition and relocation fees; 4. Instruct street offices, villages, and enterprises to work out economy restoration plans and conclude as well as exchange experiences.

9.3 Coordination institution The coordination institution of the project is the demolition and relocation coordination office of Weiyang District, and its responsibilities are: 1. Be responsible for the verification of the quantities of requisitioned lands, demolished houses, special facilities, and ground attachments according to the requirements of the land requisition and relocation office of Xi'an Infrastructure Facility Construction & Investment Co., Ltd.; 2. Be responsible for the assessment of replacement values of requisitioned special facilities and the formulation of compensation standards; 3. Be responsible for signing land requisition and relocation agreement with affected units and individuals; 4. Pay compensation fees; 5. Be responsible for the implementation of land requisition and relocation of the project, and ensure the suitable progress of relocations and the timely construction of houses. 6. Investigate and study land requisition and relocation, listen to advices of affected units and individuals, accept various complaints and appeals, and make reply or treatment in time; and make report problems that can not be solved to the project leadership group; 7. Supervise and check the usage of village-level land requisition and relocation compensation fees; 8. Coordinate town and village committees and enterprises to formulate economy restoration plans and cany out supervision and check; 9. Make reports to the land requisition office of Xi'an Infrastructure Facility Construction & Investment Co., Ltd. periodically and submit relevant data on time; 10. All affected street offices and affected village committees will appoint full- 1ime coordinators, who will implement plans and measures for economy restoration alond with street offices and village (living) committees. 9.4 Internal supervision institution ~1 Xi'an Infrastructure Facility Construction & Investment Co., Ltd, sets up the idternal supervision office composed by three persons. Its responsibility is to ensure that lan requisition and relocation institutions can well fulfill their functions in the process o implementation, supervise, investigate, and treat phenomenon infringing upon migr nts' rights and interests or affecting the progress of the project, and ensure the timely I implementation of the Land Requisition and Relocation Action Plan, and protect ri interests of affected people. 9.5 External supervision institution ! The external supervision institution of the project is Shaanxi Academy of socis1 Sciences, which is under the direct lead of the project leadership group. Its responsi ilities include: supervising and assessing land requisition and migrant relocation with pro ssional methods, supervising the participation of migrants in the process of project implem ntation and the compliance with various relocation laws and rules, appraise the project's i pact on migrants and related units, examine works of the implementation institution from t e long perspective, release assessment reports and corresponding suggestions on the impleI entation and effect in the whole process, offer the prewarning system for project manageme,!' t units and channels for migrants to reflect their suggestions. ~ Chart 7-1 Migrant Relocation Organization Institution ~I

The leadership group of Xi'an on World Bank loan utilization pro,'ect

Xi'an Infrastructure Facility Construction & Investment Co.. Ltd.

rn ~ % I 3 The leader group of Phase I Project of Demolition $nd V) Protecting Han Dynasty Roads in uc rn supervision office Weiyang Palace relocation $ce 3. cn. 0 3 I

Demolition and relocation office of Phase I Project of Protecting Han iDynasty Roads in Weiyang Palace I Committees of affected villages I

After the completion of land requisition s will be dissolved automatically. Some functions will be shi d management institutions.

10. Implementation Schedule 10.1 Progress Linkage between Resettlement of Affected People and the Project Construction

The Project, according to the schedule, will be implemented from 2008. The schedule of the resettlement of local residents caused by acquisition and relocation coordinates with the schedules of the construction of sub-projects. The resettlement and monitoring and evaluation of the acquisition and relocation plan will start from early 2008 and end in late 2008. The basic principals of the schedule on the progress are as follows:

The acquisition and relocation should be accomplished three months before the implication of acquisition land. The starting time should be certified according to the acquisition and the resettlement of emigrants.

Before the construction of the Project, enough time should be left for the acquisition and relocation and resettlement of emigrants.

10.2 Permanent land acquisition as the key task (1) According to the approval document of the Project and land using, as regards the authorized scope of construction land area, Bureaus of State Land and the Villagers' Committee will be informed to freeze the registered permanent residence of rural residents within the acquisition scope area; meanwhile, procedures are to be closed down within the acquisition scope, such as the construction license, the rebuilding of houses, transaction of house property, exchange of house property usage and lease and transfer, etc.

(2) People are organized to conduct on-the-spot inspection and check according to the quantity of land acquisition within the acquisition scope, including the number of households whose houses are acquired and population, coverage and the certifying of over-ground attachment.

(3) According to the project approval, ratified planning scheme and investigation results as well as related approval documents of the land acquisition plan, acquisition scheme, and constriction land occupation, etc, apply with the land charging departments of municipal, town and district for transfer of construction land; (4) Announce the scheme on land acquisition and emigrants' resettlement, and publicize the land acquisition policies, work procedures, resettlement schemes and 1 compensation price, clarify the scope of land acquisition and the usage of acquired lbnd and I respect the participating and supervising of the mass. I

(5) During the acquisition period, sign the written form agreement with villages on items of compensation form and amount, the settling form of labor force, the transitjonal form I and transitional period limit and dedicate to the acquisition mobilization. I

10.3 The Schedule of Key Tasks as Regards to the Implementation of Emigrants' Resettlement I

10.3.1 Principles on the schedule making of implementation of acquisition reldcation i and emigrants' resettlement. I The scope of acquisition relocation of the project should be determined accordihg to the individual project designing map and should be nailed down before the measurdment and calculation of acquisition relocation practicality. ~I

The measurement and calculation of acquisition relocation practicality will be conducted by the Project Office and the property rights holders according to maps of acquisition relocation and should be conducted prior to the signing of compensation and resettlement agreement.

The Project Office will held a conference participated by emigrants to announce policies and resettlement methods related to land acquisition, relocation and compensat on, after which the formal announcement of land acquisition and relocation is released beforeii the signing of compensation and resettlement agreement.

The signing of compensation and resettlement agreement should be conducted measurement and calculation of acquisition relocation practicality and the rele announcement of acquisition and removing.

The compensation cost balance should be conducted after the signing of bilateral agreement and before the removing. 1

The implementation check of the resettlement. I

10.3.2 The plan of general progress of the activities of acquisition, relocation and emigrants' resettlement ~

The plan of general progress of the activities of acquisition relocation and emi ants' resettlement of the project has been made according to the rate of progress of the pC' eparation and implementation of the acquisition and relocation and the emigrants' resettleme t of the project. See table 10-1. f Table 10-1 Schedule of the Plan of General Progress of the Activities of Acquisition Relocation and Emigrants' Resettlement -. 1 Name of Task \ Start Time Ending Time -- - - a -- I prophase work of acquisition 1 I 1 1 Summon of related personnel by the Project Office

The certifying of the scope of acquisition relocation of the project 2008.1.16 2008.1 .\lo

Preliminary investigation on social economy 2008.1.2 1 2008.1.25 The making of policy framework of I 2008.1.26 2008.1 .I0 I emigrants Preparation and training for investigation of acquisition relocation 2008.2.1 2008.2.10 Measurement and calculations of 2008.2.1 1 2008.2.20 acquisition relocation practicality 2I Policy and scheme of consulting and 1 resettlement 2008.2.2 1 2008.2.28 1 I I I Acquisition and resettlement I

mobilization and policies 2008.3.1 2008.311 0

II Releasing of acquisition and resettlement announcement 2008.3.11 2008330 1 1 Negotiating and signing of compensation I and resettlement agreement 2008.4.1 2008.4120

I Balance and issuing of compensation 1 2008.4.21 I Fees 1 Implementatiomn of removing I Check and evaluation 1 2008.12.20.1 1 2008.121..3 1 1

1I .Supervision & Assessment Mechansim To ensure the smooth implementation of migrant relocation plan, the project supervise the whole process of land requisition and migrant relocation. The divided into internal supervision and external independent supervision. As supervision of migrant relocation plan of Xi'an urban traffic project, external supervision of the migrant relocation plan Shaanxi Academy of Social Sciences. 1 1.1 Internal supervision Purpose and task The purpose of internal supervision is to ensure that migrant relocation institutions can maintain the good functions in the implementation process of the plan, guarantee the legal rights and interests of affected people and the smooth implementation of the project. Auditing organs of Weiyang District will exert the independent auditing right on some units according to laws. Meanwhile, all units should supervise works of their branches in a bid to ensure all relocation institutions comply with Migrant Relocation Action Plan and the timetable in migrant relocation. Institution and personnel Internal supervision of land requisition and relocation is presided by the migrant relocation office and implemented by migrant relocation teams of street offices and villages. To effectively exert internal supervision function, personnel of relocation institutions at all levels engaged in the project have participated in the formulation and implementation of Migrant Relocation Action Plan, and carry out internal supervision and control over the implementation and fulfillment of Migrant Relocation Action Plan. Supervision contents Concrete contents of internal supervision include:

(1) Migrant compensation allocation and use; (2)New homestead selection and distribution; (3) Private house rebuilding; (4) Support for weak groups; (5) Employment of affected labor force; (6) Channeling and improvement of water conservancy projects such as irrigation; (7) Agricultural structure adjustment and crop variety selection; (8) Land adjustment and distribution; (9) Arrangement of individually-owned businesses and private shops; (10) Restoration of special facilities; (I 1) Timetable for the above activities; (12) Implementation of migrant relocation plan; (13) Migrants' participation and consultation in the period of implementation; (14) Personnel configuration, training, timetable, and operations of migrant institutions at all levels.

Implementation procedure The migrant relocation office implements the internal supervision operating mechanism to check migrant relocations. The office establishes the land requisition, demolition, and migrant relocation databases and supervises the whole process of migrant relocation preparation and implementation. During the period of implementation, migrant relocation institutions at all levels should establish the corresponding migrant relocation information databases and upgrade them dynamically in the light of the actual situation, and deliver real-time activity record and implementation progress to the superior migrant institutions so as to maintain the continuous supervision over migrant relocation. In the above supervision operating mechanism, the project office will work out information tables in the stipulated format to realize the continuous information stream from villages to the migrant relocation office. The migrant relocation office and street migrant relocation office, as the important part of internal supervision system, Nil1 make periodic check and verification. I

I 11.2 External independent supervision and assessment I Purpose and task I

External supervision and assessment mainly refer to the periodic supervisio assessment on land requisition and migrant relocation from external relocation institutions so as to judge whether objectives of migrant relocation have been re External supervision and assessment will put forward suggestions and advices o and production level restoration in the whole process of migrant relocation, and prewarning system for project management departments and channels for bring forth their suggestions. External supervision institution will act as the consultant for the leadership group and the migrant relocation office, supervising and implementation of migrant relocation and putting forward suggestions. Main indexes of supervision and assessment A. Main supervision indexes (I) Progress: include land requisition and migrant preparation, land demolidion implementation, and migrant relocation; (11) Quality: include project construction quality and migrant satisfaction id the process of land requisition and relocation; (111) Investment: include capital allocation and usage. B. Main assessment indexes ~

(I) Migrant (I) Economy: economic development after migration, including the posseslion of family production and living data, assets, and incomes; I (2) Environment: living environment after migration, including the develodment of public facilities such as traffic, culture and education, sanitation, and commerc'al services; i (3) Employment: employment after migration, offer helps to different subjlcts, especially families in poverty and families of minority nationalities; I (4) Community development: local communities7 economic and environmintal development, interpersonal relationship, and public opinion after the proper relpcation of migrants. ~

(11) Infrastructure i Infrastructure changes in affected areas. I (111) Enterprises Changes of enterprises7 operating environment and status after relocation. ,

I 12. Expenditure and Budget ,I

12.1 Expenditure ~

See table 10-1 for the general schedule of budget of immigration plan of the 51 table lo-1 The general schedule of budget of immigration plan of the project

Basic preparation RMB Yuan 6% 4480000 5.1 fees Static RMB Yuan 79200000 investment(n0 taxes 52 The amount of money used directly for land acquisition, compensation and re1 vant fees in the plan is 7 1.592 million; fees of the fourth and fifth part has already been inclu ed in the total amount of investment of the first phase protection project of Han Dynasty road within Weiyang Palace. S~ 12.2 Capital Flow Direction and Plan of Payment by Transfer i

12.2.1 Capital flow procedures 1

See the following diagram for capital flow: i! Diagram 10-1 The diagram on the capital flow of emigrants ~

Land requisitoin and relocation office

?-lMigrant relocation

I Village committee and I ---rivillager team .Affected villagers 12.2.2Capital transfer plan and its management

As for the compensation fees, the land compensation fee and resettlement fee will be paid by the principal being the project owner (the emigrants' resettlement agency of the project) to the affected villages, the compensation for green crops will be paid directly to the affected households. The land compensation fee and resettlement subsidy fee will be distributed according to diverse manners. The compensation on houses will be paid to the property rights owner of the houses by the emigrants' resettlement agency according to agreement on the relocation of houses. The compensation of infrastructure will be paid directly to the property right holders of various kinds of infrastructure by emigrants' resettlement agency.

The land compensation fee and the resettlement subsidies should be paid to the affected villages prior to the acquisition; the green crops compensation fee should be paid to the affected households prior to the acquisition. The house compensation fee of the emigrants will be paid to the emigrants periodically.

The resettlement agency should hand on the copy of agreements and payment voucher related to the acquisition and relocation to the Project Office of Xi'an for filing. 13. List of Authority 1

Affected Affected Polices for Compensation I Standard I Types Person Acquisition Lujiakou, Ximazhji and Tianlucun shall Permanent Abtaining land compensation compensation Affected land 62,700 Yuardmu, I households fees acquisition RMB 64,500 ~ua4muand RMB 63,600 Yuaymu respectively. ,I The project construction units shall coordinate with Xi'an Compensated Xi'an Plastic Factory and make transfer of Plastic RMB 281,300 ~udn/mu compensated transfer in national land Factory accordance with its industrial value and profit situation. Rural houses affecting the project shall be arranged through two methods in accordance with the wills of affected households Monetary Compensation Compensation shall be paid in terms of replacement cost. The houses affected by the Project and monetary compensation shall be paid in terms of existing building area with the standards as RMB 900 Yuan per square meter. (Calculated according to Owner of Brick concrete strpcture Removing the available construction area, the RMB 900-1,100 Yuan/ m2 houses of the and to be compensated abided Other structures residents property by relevant standards) right Exchange of property rights RMB 700-900 Y Provided that the Removal demolished household is unwilling to accept monetary compensation, then relocation house shall be constructed between Weiyang Palace and Changle Palace, which is in the south of Arms Warehouse within the City Wall. In addition, the resettlement shall be done by balancing out between the real estate market 55 Affected Affected Polices for Compensation Standard Types Person Acquisition price of demolished house and the real estate market price of relocation house. Mental compensation stipulated Frame structures: Xi'an Removing of in Temporary Regulations on RMB 1,100 Yuan/ m2 Plastic workshop Xi 'an Urban House Demolition Brick concrete structure: Assessment RMB 1,000 Yuan/ m2 Pond Aboveground RMBI 8,000-22,000~uan/m~ objects Person of The project construction units Fruit trees attached to the RMB13O-170Yuanl m2 land and property shall compensate persons of the right property right concerned public Other trees establishments RMB 17-25Yuad m2