Appendix R

RP84 V. 5 Public Disclosure Authorized

The Second Liao River Basin Project

Resettlement Action Plan Summary Report (Draft) Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

The Second Liao River Basin Project Volume 3 February 2002 r l Appendix R

Project Description

1 The proposed project consists of the following components:

1.1 Urban Wastewater Treatment Sub-project: including construction of a 4,000,000 tons/day capacity secondary wastewater treatment plant, 6.915 Km sewage interceptors, 9.9 Km urban sewers and construction of 2 new pumping station, upgrading of 3 existing pumping station; 1.2 Urban Wastewater Treatment Sub-project: including extension of water treatment plant from 150,000 tons/d to 200,000 tons/d and construction of 25.9 Km water reuse pipe, also including the construction of 67.96 km wastewater collection sewers and 5 wastewater pumping stations; 1.3 Urban Wastewater Treatment sub-project: including the construction of 100,000 tons/day capacity secondary wastewater treatment plant with 60,000 tons/day reuse system, 9.7 km interceptors, construction of 2 pumping station;

2 Social-economic background of project area

2.1 Shenyang

Shenyang, the capital of Province, located in the south of the northeast part of , is the center of politics, economy, culture and communication in the whole province and it also is the biggest hub of communication and industrial city in the northeast part of China.

Liaoning Province is a highly urbanized province. Shenyang is located in the hinterland of Liaodong Peninsula Development Zone. With Shenyang as the center of region, within the diameter of 150km radius, Shenyang, , Fushun, , , , and form the central economic circle and city group of Liaoning Province. The unique location of Shenyang means it has a large development potential and advantage. At the same time, beside self development, Shenyang also has the responsibility of promoting the development of Liaoning Province and the northeast part of China.

The jurisdiction of Shenyang covers one county-level city, nine urban districts and three counties. Its total jurisdiction area is 12,980 km2 with a total population of 6.8 million (4.76 million urban). The built-up area of Shenyang is 185 km2 with a population of 3.48 million. There are about 5,000 industrial enterprises in the city including 330 large-scale enterprises.

Shenyang is the old industrial base constructed in the first five-year-plan period. In the past, the development principles of the city were " producing first, then comes living ", " polluting first, then comes the harness " and " production first, management later". This unreasonable development concept caused lots of serious problems in the urban biological environment.

Since the our country's economic reform, Shenyang has become the biggest economic center in Liaoning province. Automobile, machinery, electronic information, environmental protection and chemical pharmacy are prominent industries. Shenyang Taoxian International Airport provides more than 40 domestic scheduled flights and several international scheduled flights everyday. Shenyang is the biggest railway hub in the northeast part of China. The highways in Shenyang radiate in all directions. The highway between Shenyang and Beijing has been put in use since September, 2000. This highway shortens the distance between Shenyang and Beijing, the capital of China, even the distance between Shenyang and the world. In 1999, GDP of Shenyang was 101.31 billion RMB yuan.

Shenyang is located on the north bank of the Hun River. The Hun River was called "Shen Water" in history and "Yang" was given as a name to a place on the north bank of a river. Shenyang, a famous historical city in China, is a good place for tourism. There are many famous historic sites, museums and memorial halls in Shenyang, such as Qing Imperial Palace, Fu and Zao tombs, " 18*, September" The Second Liao River Basin Project R-l Volume 3 February 2002 Appendix R

Historical Museum, "the Zhang's Residence" (the residence of late warlord Zhang Zuolin and his son Zhang Xueliang), School of Teenager Zhou Enlai, and Steam Locomotive Museum and so on.

2.2 Fushun

Fushun is located in the east mountain area of Liaoning and its coordinates range from east longitude 123039'42" to 125028'58" and north latitude 41014'10" to 41028'32". Fushun is adjacent to Tonghua and Liuhe city of Jilin province on the east, Benxin on the south, Tieling on the north and 45 km distance to Shenyang on the west. Its jurisdiction covers one county-level city and 3 counties with a total area 10,816 km2 . The urban area of Fushun city includes 5 districts (Xinfu, Wanghua, Dongzhou, Shuncheng and Lutian) and 2 economic development zones (Lishi and Gaowan). The planned urban area is 199 km2 , and its total population in 1998 was 1.404 million. Fushun city sits in the moderate-temperature belt and has a continental climate with clear four seasons: hot and rainy in summer, dry and cold in winter. Fushun as one of power bases of our country possesses coal, power and oil industries that have important position in whole province. Rich and various power source in Fushun provide a good basis for development of other industries and guarantee urban development and living level improvements. The gross industrial production of Fushun ranks fourth in the province. Fushun city has many large and medium scale industries, particularly developed heavy-industries. Fushun has formed a industrial system with 35 categories, this will greatly push urbanization forward.

2.3 Panjin

Panjin city is located in the southwest of Liaoning, and down stream of Liao river, facing Bohai sea and adjacent to Laiodong bay on the south and Yinkou city on the northeast, within the Economic Development Zone Rounding Bohai Sea. Geographically, the city is at east longitude 1210 31'-1220 28'and north latitude 41040'- 41027'. The city has a low and flat terrain in urban area. Before entering the Bohai sea the Shuangtaizi river goes through the Panjin city and divides it into two districts, Xinglongtai in the south and Shuangtaizi district in the north. Panjin has a continental monsoon climate with clear 4 seasons, windy and rainy in spring. Panjin is the biggest heavy-industrial base in the east part of Liaoning province with the main industries being oil and chemical. In 2000 the gross industrial production of Shuangtaizi district was 8.64 billion Yuan.

The jurisdiction of Panjin city covers two districts (Xinglongtai and Shuangtaizi) and two counties (Panshang and Dawa). The total area is 3,750 km2 , including 167 km2 urban area with 450,000 population.

Resettlement Action Plan

3 Laioning Urban Construction and Renewal Project Office together with resettlement consultant of MW Company prepared a resettlement planning. Shenyang, Panjin and Fushun provided their own resettlement action plant report which showed the project's impacts on land, houses, enterprises, institutions and peoples. Social economic survey was conducted by adopting ways of questionnaire, interviewing and discussion etc. The social economic survey is thought as a integral part of the project during the preparation of resettlement action report. Different engineering schemes were considered during project planning and design to minimize the adverse impacts caused by project implementation.

Project impacts

4 The project will involve land acquisition, temporary land use and demolition of houses and entities. Construction of wastewater treatment plants and pumping stations will involve land acquisition, and interceptors mainly involve temporary land use and demolition of houses and entities during the construction period. According to the preliminary survey results, the project impacts are showed in the following table: The Second Liao River Basin Project R-2 Volume 3 February 2002 Appendix R

Components Land acquisition (hectare) Affected Affected people entities (person) Collective land State owned land Permanent Temporary House Employees Permanent Temporary Permanent Temporary Land Use Land Use 1. Shenyang WWTP 57 0 249 Interceptors and sewers 28.875 14.75 13 374 1044 220 upgrading Pumping station 1.48 2 10 2. Fushun Wastewater reuse 14.7 11.5 88 Trunk sewers 8.959 45.409 1 1 Pumping station 0.1 3. Panjin WWTP 12 153 Interceptors 35.475 Pumping station 0.15 2 Total 69.25 37.834 16.18 71.659 16 403 462 1044 230

The Second Liao River Basin Project R- 3 Volume 3 October 2001

Appendix R

Based on the survey results, we learned that wastewater treatment plant and pumping station of 3 subprojects will totally involve permanent land acquisition of 107.084 hectares including 69.25 hectares of collective land; the farmers affected by land loss are 403; The temporary collective land occupation for interceptor construction is 37.834 hectares, affecting 462 farmers. The affected entities are 16 with 230 employees. The people affected by house demolition are 1044.

Legal Framework

5 Resettlement action plans will be compiled according to stipulations in the Bank's Involuntary Resettlement operational directive 4.30 and the relative laws and regulations of our country, Liaoning province and the local city. The basic principles adopted in the resettlement action plan are as follows: * Compensation will be identified on the basis of replacement cost and no depreciation considered; * Compensation for land acquisition will be paid to affected people prior to implementing land acquisition; * Compensation for house demolition will be paid to affected people prior to dismantling houses; * Compensation will be finally settled by negotiation and consultation; * Affected people whose affected assets are not in accordance with legal procedure will also be fully compensated; * The objective of resettlement is to at least restore, or improve the living level of the affected people;

Resettlement and Rehabilitation action plan

6 Resettlement for people affected by land acquisition

A popular resettlement method in china for people losing their land due to the construction of wastewater treatment plant will be adopted. Affected villages will be responsible for resettlement and restoration of the land, productive activities and living of affected people. Land compensation will be paid to the affected village and will be used on agriculture or other aspects after being agreed by all villagers including the affected people. Land will be reallocated within the whole village before the start of the next cultivation season.

6.1 Shenyang

The Shenyang project will involve the permanent land acquisition of No. I team of Xiaoyu village. This team totals 720 people. After land acquisition, 33 hectare of land is left for this team. Unallocated land in Xiaoyu village is 40 hectare.

Resettlement method: Unallocated land in Xiaoyu village will be given to 249 people directly affected by land acquisition. After land reallocation average per capita land occupation will be 0.16 hectare, 0.07 hectare less than the average level of 0.23 hectare before land acquisition. However, the following measures will be undertaken by Xiaoyu Village in order to avoid a living standard decrease of the affected people:

(1) The land compensation costs and resettlement subsidy should be fully used on the 40 hectare reserved land to develop greenhouses and plant high-value vegetables and fruits, such as cucumber, eggplant, broccoli, and peach trees, etc. Which can be produced in greenhouses. The resettlers have had experience in planting in greenhouse before. Training may be given when necessary.

(2) The land compensation costs will be used to development industries jointly with other The Second Liao River Basin Project R-5 Volume 3 October 2001 Appendix R

agencies to provide job opportunities for the affected villagers. The industries will include:

* Beijing Liubiju Pickles Plant branch, with land occupation of 1.3 ha. 300 persons will be recruited. Land tenure has already been confirmed. * Shenyang Huilong Electrical Appliances Co. Ltd, with land occupation of lha. 130 persons will be recruited. Land tenure has already been confirmed. * Shenyang Weiming Decoration Materials Co. Ltd, with land occupation of 0.3ha. 200 persons will be recruited. Land tenure has already been confirmed.

(3) The affected people of Xiaoyu Village have 2 options to choose. If they want to work in agriculture, Xiaoyu Village will allocate certain agricultural land for them. At the same time, employment opportunities will also be provided for those who want to have a job. Relative training will also be offered. With the carrying out of these measures, the living level of Xiaoyu Village will not be decreased.

Construction of the sewer upgrading will have temporary impacts on the peasants near the sewer areas. The construction period is estimated as 2 to 4 months; On the construction completion, the compensation for the temporary land occupation will be used to restore the land function. The direct affected peasants shall be compensated for the construction period.

6.2 Fushun

In the proposed Fushun wastewater treatment project, only one Kuangdong pumping station will occupy 0.1 hectare dry land of Longfeng village. The Longfeng village has 190.8 cultivated land and 1313 population totally. The capita land allocation is 0.145 hectare. The pumping station will affect 0.1 hectare land which accounts for 0.05% of total land of Longfeng village and one people will be affected. The impact is very small. After full compensation is paid, the village can reallocate a plot of land to the affected people. The living level of the affected people won't decrease due to the construction of the pumping station.

Construction of the trunk sewer will have temporary impacts on the peasants near the sewer areas. The total temporary collective land use of the project is 8.959 hectare that covers 3 category of land: dry land, paddy land and vegetable land. The construction period is estimated as 2 to 4 months; On the construction completion, the compensation for the temporary land occupation will be used to restore the land function. The direct affected peasants shall be compensated for the construction period.

6.3 Panjin

The WWTP of the project will occupy 12 hectare of paddy land owned by Gujia village of Panshan county of Panjin. The village has 13 villager teams in total. The land acquisition of the project will affect the No. 9 and No. 11 teams. The village doesn't have reserved lands and all lands of the village have been distributed to individual team. Lands were reallocated within the village in 1998 when Panjin Liaohe Fertilizer Plant requisite about 100 Mu lands of the village. And lands contract were renewed within the village in 2000 that means that affected people can't re-get their lands by lands reallocation until 2005. In order to ensure the living level of affected people don't drop off, the village planed to adopt the following resettlement ways:

A The village will help the affected people to adjust agricultural production structure by use of land compensation and labor resettlement subsidy, for example developing greenhouses and planting the vegetables with give higher economic benefits. The resellers have had experiences in planting in the greenhouse before. Training may be needed when necessary.

B The village now have 3 collective enterprises which are Panjin Paints Plant, Panjin Chemical Plant, Panjin Prefabricated Concrete Board Plant. Employers worked in these enterprises can earn 4,000-6,000 Yuan income in a year. The affected people can be arranged to go into these enterprises for working.

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C In addition, the village plan to construct a new Brick Plant for resettlement of affected people.

D At present about 400 people of the village worked in Loading Brigade of the Panjin Ethylene Plant which is close to the village. People worked in the plant can get 6000-7000 Yuan income in a year. The village plan to arrange some affected people to go to the plant to work.

After implementation of the above resettlement ways, income level of the affected people won't drop off due to the project.

7 Compensation and resettlement for people affected by house demolition

For people affected by house demolition, two resettlement methods will be available depending on affected people's ideas: one is cash compensation and the other is house replacement. Urban people can choose the cash compensation method and freely use the compensation to buy a new house, or choose a house provided by the project owner. For villagers, compensation identified on the basis of replacement cost will be paid with no depreciation considered, and construction materials during house dismantling that can be reused will be given to the affected people. If house replacement is chosen, village will be responsible for alloting a plot of land to affected people.

7.1 Shenyang

(1) Resettlement for peasant Affected peasants will be responsible for their own reconstruction after being given full compensation and moving subsidies. Nanliguan village will totally allocate 9,100 m2 housing site to affected 65 households on the basis of a standard of 140m2 /household.

(2) Resettlement for urban residents There are 2 options for the resettlement of the affected urban residents:

* Physical resettlement. According to the regulations of Shenyang People's Government, all the 7 affected families will be resettled with apartments of Type One. The affected families will purchase new apartments at the price of 400 yuan/m2 up to their original area recover and at 520 yuan /m2 for additional area, and have complete house property ownership. The resettlers with no ability to purchase a new apartment will negotiate with the Drainage Co. on apartment renting issues.

* Currency resettlement: Currency resettlement will be based on the building areas of the demolished houses. Unit price will take the average price of common marketable housing. The resettlers will be paid with cash. For those who are unable to purchase the new apartment and are going to rent the apartment, the compensation will be deducted by 15% for house property ownership compensation costs.

8 Compensation and resettlement for affected entities

Compensation for house demolition and loss of production will be given to affected entities. The compensated entities will be responsible for their own rehabilitation under planning and guidance of the local government. Business entities temporarily affected due to the construction of interceptors will be compensated according to the relative policy and their business will restore after completion of the construction.

8.1 Shenyang

Shenyang Qingnian Nursery and Xiobei No.2 storage house of Shenyang Preservation and Transportation Company will suffer from permanent land occupation due to pumping station construction. However, the other 13 affected enterprises will only have temporary impacts from the

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construction of interceptors. These 13 enterprises are spread along the 6.915km interceptor and they can be recovered in the surrounding area. According to the agreement to be reached with the affected enterprises, the enterprises will make use of their compensation to restore their production in the nearby area. As the construction of the interceptor will be conducted section by section, construction of new production facilities will be conducted first before the existing ones are demolished, and the normal operation of the industries will not be affected. When production stops during construction period, certain compensation will be provided to cover staff salary and profit losses.

Organizations

9 Relative organizations on resettlement action

9.1 Shenyang sub-project. The following organizations will be involved in resettlement action: * Liaoning Urban Construction and Renewal Project Office(LUCRPO) * Shenyang Urban Environmental Project Leading Group(SUEPLG) * Shenyang Urban Construction Project Management Office(SUCPMO) * Shenyang Urban Wastewater Treatment Ltd. Company(SUWTC) * Shenyang Municipal Urban Planning Bureau(SUPB) * Shenyang Municipal Land Administrative Bureau(SLAB) * People's Government of Zhectareijia Town (PGZT) * House Demolition Mangement Office of (HDMOYuhong) * Land Administrative Bureau of Yuhong District (LABYuhong) * Administrative Committee of Xiaoyu Village of Zhectareijia Town of Yuhong District (Xiaoyu AD) * China Shenyang Urban Engineering Design Institute(CSUEDI) * Resettler Research and Monitoring Center of Hehai University (RRMC)

9.2 Fushun sub-project. The following organizations will be involved in resettlement action: * Liaoning Urban Construction and Renewal Project Office(LUCRPO) * Fushun Urban Wastewater Treatment Project Leading Group * Fushun Drainage Company * Fushun Wastewater Treatment Project Management Office * Fushun Municipal Urban Planning Bureau * Fushun Municipal Land Administrative Bureau * Land Administrative Bureau of Fushun Economic development Zone, Wanghua District and * Administration Committee of Wujiapu, Xingtaihe, Dongzhou, Longfeng, Yuangong, Lihan, Lixian and Gaoyang Village * Northeast Urban Engineering Design Institute * Resettler Research and Monitoring Center of Hehai University(RRMCHU)

9.3 Panjin sub-project. The following organizations will be involved in resettlement action: * Liaoning Urban Construction and Renewal Project Office(LUCRPO) * Panjin Urban Wastewater Treatment Project Leading Group * Panjin Urban Wastewater Treatment Engineering Headquarter * Panjin Urban Wastewater Treatment Company Ltd. * Panjin Municipal Planning Bureau * Panjin Municipal Land Administrative Bureau * Panshan County Land Administration Bureau * Gujia village of Panshan County * China Urban Engineering Northeast Design Institute * Resettler Research and Monitoring Center of Hehai University (RRMC)

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10 Implementation Schedule

Under the basic principle of resettlement action being fit to construction action, we prepared a resettlement action implementation schedule, which are given in the following table:

Project city Construction schedule Resettlement action schedule Starting End Starting End Shenyang 2001.4 2003.12 2000.12 2003.9 Fushun 2002.9 2003.12 2002.6 2003.4 Panjin 2002.3 2004.10 2001.10 2002.11

Public Participation and Consultation

11 Public participation and consultation will play an important role in preparation of resettlement action plans. The concerned staff is implementing surveys of affected quantity and quality with the full participation of affected villagers and leaders. Affected people and all citizens will be fully involved to get their suggestions and comments on project arrangements, compensation standard, production and living rehabilitation method and resettlement location etc. These feed-back comments will be reflected in the resettlement action plan report.

In the feasibility study stage of project, the project management office of Shenyang, Panjin and Fushun made many surveys on opinions and comments of municipal and each district government, People's Congress, Political Consultation Congress, public communities, affected people for sewer routes, location and plan of WWTP and land requisition and resettlement. The survey results are analyzed and put into the report. Since September 2000, Shenyang has organized 6 times public participation activities and disclosed project information in local Shenyang Daily two times. Fushun has organized 2 times public participation activities. Panin has organized 2 times public participation activities.

12 Public participation and consultation will be encouraged and strengthened during the implementation of the resettlement action plan and project construction. Suggestions and comments of affected people on land reallocation, resettlement location and house rebuilt will be fully considered. Information on project construction, resettlement and compensation will be disclosed by TV, broadcasting, newspaper and bulletins. After final resettlement action plan is approved by the World Bank, a resettlement manual will be developed and distributed to all affected individual(s) and entities. Consultation meetings will be held regularly.

Grievance and Appeals

13 Project owner will be responsible for establishing grievance and appeals mechanism which its contents mainly include that grievance can be provided by writing or oral, and by affected village or resettlement office. Procedure and time on resolving grievance and appeals will be showed in resettlement manual.

Monitoring and evaluation for resettlement work

14 Internal and external monitoring will be integral parts of implementing resettlement. The project management office will be responsible for internal monitoring of resettlement. Resettlement action plans will give a detailed description on monitoring such as procedure, contents, staff, functions, time and reporting mechanism. Independent organizations will be employed to monitor the implementation of project resettlement externally. External monitoring will cover all

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resettlement contents including payment of compensation, selection of resettlement location, land re-allocation and rehabilitation of infrastructure, as well as public participation situation, operation of resettlement office, grievance and appeals mechanism, and restoration of affected people. Biannual external monitoring will be implemented during project construction.

Cost and budgets for compensation and resettlement

15 Compensation for various kinds of impacts will be identified according to "the People's Republic of China land administrative law" and relevant laws and regulations of Liaoning province and the local city, and different compensation will be given for different categories of land. Compensation for affected buildings and structures will be identified according to replacement cost. Compensation will be finalized after negotiation and consultation with affected people.

16 Cost and budgets for compensation and resettlement covering basic resettlement cost, management, contingency, survey, design and monitoring cost, is calculated and given in resettlement action plans. Basic resettlement cost includes compensation for land acquisition, house demolition and other structures demolition. Total cost for compensation and resettlement of Shenyang, Panjin and Fushun is RMB 142,152,088 Yuan, equivalent 17,126,758 USD. A disbursement procedure and monitoring mechanism has been established to ensure satisfactory payment of compensation and resettlement work. The following table showed the cost for compensation and resettlement of each component:

Project city Total cost for compensation and resettlement (RMB Yuan) Shenyang 125,944,900 Fushun 678,518 Panjin 15,528,670 Total 142,152,088

The Second Liao River Basin Project Rl0 Volume 3 October 2001