Social Monitoring Report

Semi-Annual Report January 2013

PRC: Integrated Road Network Development Project

Prepared by Beijing Zhongkehongce Consulting Company for the People’s Republic of and the Asian Development Bank.

ADB Loan No. 2709-PRC: Yunnan Integrated Road Network Development Project (Longrui Expressway)

MONITORING REPORT ON RP AN EMDP IMPLEMENTATION (No. 2)

Beijing Zhongkehongce Consulting Company

January 2013

iii

Table of Contents

I. INTRODUCTION ...... 1 II. METHODOLOGY ...... 1 III. RP IMPLEMENTATION ...... 2

A. FUNDS DISBURSEMENTS ...... 2 B. COMPENSATION PAYMENT TO APS ...... 2 C. NEW HOUSE PLOTS AND NEW HOUSE BUILDING ...... 4 D. LIVELIHOOD RESTORATION ...... 5 E. SATISFACTORY STATUS AND COMPLAINTS OF APS ...... 8 IV. EMDP AND GAP IMPLEMENTATIONS ...... 8

A. SUPPORTS TO ETHNIC MINOIRTY COMMUNITIES ...... 8 B. TECHNICAL TRAINING...... 8 C. GOOD RELATIONSHIP WITH COMMUNITIES ...... 10 D. RURAL ROAD MAINTENCE GROUPS OF WOMEN ...... 10 V. MAJOR CONCLUSIONS AND RECOMMNEDATION ...... 11

A. RP IMPLEMENTATION ...... 11 B. EMDP AND GAP IMPLEMENTATIONS ...... 11 C. RECOMMENDATION ...... 11

iv

I. Introduction

1. Resettlement Plan (RP), Ethnic Minority Development Plan (EMDP) and Gender action Plan (GAP) of Longrui Expressway of Yunnan Integrated Road Network Development Project (the Project) have been implemented since June 2012. Beijing Zhongkehongce Consulting Company (BZCC) was appointed by Longrui Expressway Company (LREC) to conduct independent monitoring and evaluation (M&E) on the implementation of these plans. The first monitoring report was submitted to ADB and YPDOT in July 2012, which mainly included monitoring plan and baseline survey plan. The baseline survey was conducted during July-September 2012. Draft baseline survey report was submitted to ADB in November 2012, and finalized baseline survey plan was submitted to ADB in January 2013 along with this report. This report, serves as both semi-annual and annual monitoring reports, presents the implementation status and quality of RP, EMDP and GAP in 2012.

II. Methodology

2. This monitoring team first reviewed the project progress reports (No.3 and No.4) prepared by LREC, and then surveyed 8 natural villages from 7 administrative villages in 5 townships of the 3 project county/cities from December 12 to 28, 2012. The surveyed villages are listed in Table 1. Two surveyed villages, Xiaomidi and Chudonggua, were also targeted by baseline survey as they are dominated by two special less populated ethnic minority groups. Chudonggua village is dominated by De’ang people and Xiaomidi is the only village along the project road where Lisu people live. The other five villages were not targeted by the baseline survey. Aim of selecting different villages from the baseline survey is to increase the monitoring coverage.

Table 1 Villages Surveyed County Township Administrative Natural village Ethnicity Baseline village survey Longling Longxin Huangcaoba Wanting Han Yes Xiaomidi Lisu No Hunong Mangli Dai No Humen Batuo Dai No Sangtaishan Chudonggua Group four De’ang Yes Bangwai Gongbie Jingpo No Mengmao Mangling Dai No Jiexiang E’luo Hayunlei Dai No

3. Group and/or individual interviews were organized in each surveyed natural village, and 10-15 APs were interviewed and visited in each natural village. Totally 98 households interviewed, including 15 households who need to be relocated. The interviews focused on procedure of land compensation, satisfaction of affected people with the RP and EMDP implementation, status of obtaining new house plots, status and actions of livelihood restoration, use of or plan to use the compensation, employment opportunities provided to ethnic minorities, help to affected villages by local governments, LREC and contractors etc. In addition, the monitor also met and discussed various issues the resettlement staff of LREC and the city/county coordination offices. The

1

monitor did not visit any village that had not started land acquisition.

III. RP Implementation

A. Funds Disbursements

4. As presented in the fourth progress report of LREC, it has disbursed CNY 58.7 million and CNY 335.6 million to Longling County and Dehong Prefecture respectively by 31 December 2013. The Longling and Dehong Coordination offices confirmed that they have received the funds. The following figure presents the disbursement records.

Figure 1: Disbursement Records of LREC (up: Dehong Prefecture, bottom: Longling County) B. Compensation Payment to APs

5. After DMS, the project office paid land compensation to affected households. It was

2

known from the project progress report that 68.3%1 of affected people have already received their compensattions by end of December 2012. 6. APs can withdraw the compensation wheneven they like. All interviewed households have recived their land compensation payments and a very few of them also received house compensation paymemts. Compenstion flows diretcly from the county/city coordination offices to APs' saving accounts in the Yunnan Rural Credit Cooperatives (see Cases 1-2 below). All interviewed persons are satisfied with the procedure of compensation flow and they were basically happy with the compensation rates2.

7. Compensations for structure demolishment (a very few of cases only) and for land acquisition were paid saparately (see Case 2 below), each in one installment. The interviewed households were satisfied with the quick and full payment of their compensation.

1 This figure is from the Project Progress Report (No.4). 2 Latest rates, higher than the stipulated rates in the 2011 provincial policy for land acquisition.

3

C. New House Plots and New House Building

8. With a few of exceptions, relocation and new house constructions have not yet started. All the 15 relocation households had obtained their new house plots and are will start building their new houses upon the arrival of compensation payments (one already built by using own funds). They wish LREC and county/city coordination office to speed up relcoation and compemsation paymemts so as to enbale them to build their new houses the soonest. 9. In Ruili City, every natural village has its reserved land area used for house plots. In the case of Hayunlei natural village (last one in Table 1), for example, there are 3,600m2 of reserved land which will be used as 12 house plots. While the project will only to relocate two hosueholds. Township government and village committee pomised to help the relcoation households to access to water supply, electricity and roads as well as to do land levelling (Santongyiping in Chinese) in 3 months upon

4

the commencement of relcoation. According to the two affcted hosuehlds, they could build their new houses within 7 months. Again, they wish government departments to do the Santongyiping as soon as possible. 10. In the case of the two natural villages in Zhefang Township of Mangshi City, households to be affected by relcoation also got their new house plots altough relcoation has noy yet offically started: (i) own vegetable plots3; (ii) vegetable plots bought from relatives; and (iii) vegetable plots bought from other households which were relatively more expensive than from relatives. In Mangli natural village, of the four rellocation households, three purchased house plots from their mother-in-laws, and one will use own land. Each household plan to build a new house of 2-3 stoeries of 230-300m2. 11. Mr. Yue Xiaosi, the one presnted in Case 2, has already built his relocation house (see Case 3) on plot obtained from his mother-in-law.

D. Livelihood Restoration

12. Interviewed households utilized their compensation well or have good plans to use the money. The compensations were mainly spent on purchasing production tools and investment. Below are some typical cases.

3 Vegetable plots are within the village and around existing houses.

5

Case 5 Case 6 Mr.YU Zhiming, ethnic minority group of Lisu, Mr ZHAO Lazhi, De'ang ethnic group, lives with lives with other 5 members. His family received his wife and 22-year-old son in Santaishan a compensation of CNY103,610.6 in Sept 2012 Township, Mangshi City. His family received for acquisition of 0.815 mu of paddy land and compensation of CNY95,168.05 for land 2.704 mu of dryland, and 1.523 mu forestlan. acquision. Of the compensation: (i) lent The money is saved for rebuilding his family CNY50,000 to other people at an interest of houses in 2-3 years. Part of his houses are CNY5,000 per year; (ii) invested CNY20,000 for currently lended to the contratcor of the project a down-the-hole drill for construction business; at CNY20,000 for three years. (iii) invested CNY10,000 for learning and getting a driving license for excavating machine of his After land acquisition, his family has 5 mu son. arable land and about 10 mu timber land, and a large area of forestland, partly with timbers and After land being acquired, his family still has 4 partly with shrubs. His family had cleared up mu paddy land, 20 mu dryland, and 18 mu tea the shrud land for planting tea-oil, walnut and orchard. Besides planting paddy and other Anji white tea in 2011 and 2012. Besides, he crops, his family also raises 10 pigs. His family also works as wage earner in Longling County sold 2 big pigs and 7 piglets and earned about seat. CNY10,000 in 2012. His son earned about CNY20,000 as driver of construction machines in 2012.

Case 7 Case 8 Mr. ZHAO Lazhuai, ethnic minority Mr.LI Lewang, ethnic minority group of Jingpo, 42 group of De'ang, lives with his wife and years old, lives with his wife, 15-year-old son, his third son at Chuguandong village, 10-year-old daughter, 85-year-old father, 58-year-old Santaishan Township, Mangshi City. His and mental disabled brother and 22-year-old nephew. big family of 9 persons including other His family received CNY399,000 of land two sons and and grandchildren compensation. The compensation was saved in bank received a land compensation of for: (i) building a new house in the coming 2-3 years CNY577,608 on 29 July 2012. Of the which will need about CNY250,000, (ii) paying for compensation; (i) CNY300,000 saved in kids' education; (iii) reserve for the old father and the bank for three years; (ii) CNY140,000 disabled brother; and (iv) investment in crop and invested a large truck; (iii) CNY20,000 animal husbandry. Although the money was saved invested for setting up a small hollow under his name, the acount book was kept by his wife. brick-making factory which has been operating by his second son; (iv) After land being acquired, his family still has around CNY50,000 invested for a tractor 100 mu arable land, with the majority are dryland. The arable land are seperated in two areas. One is about operated for his his first son; and (v) CNY 50,000 lent to his son-in-law for 30 mu planted with sugarcane (20 mu) and corn (10 buying a truck mu). The other is about 70 mu; of which 29 mu leased out in 2009 for six years, and the remianing is planted After land being acquired, his small with tea, macadimia nut and timber trees. faimly (he, his wife and his 28-year-old third son) has 3 mu paddy land, 15 mu Besides planting, his family also raises pigs. The fanmily bought a sow in Sept 2012 for producing and dryland, and 17 mu tea orchard. Besides planting, his family also raises selling piglets. There are 10 piglets in December more than 10 pigs. His third son got a 2012 which will be sold before the Chinese Spring paid job and earned more than Festival in Febuary 2013. His nephew works in CNY5,000 in 2012. Guangzhou and earned about CNY30,000 in 2012. He and his wife earned CNY 30,000 in 2012 from cropping at home.

6

Case 9 Case 10 Mr. Leiboyanlong, Dai ethnic group, 48 years Mr. YUE Xiaosi (see also Cases 2-3), Dai old, lives with his wife, son, daughter-in-law and ethnic group, 45 year old, lives with his wife, 1-year-old grandson in Mangli natural village, son and daughter-in-law, in Mangli natural Zhefang Township, Mangshi City. His family village, Zhefang Township, Mangshi City. His received a land compensation of CNY76,000 in family received a land compensation CNY Nov 2012. Of the compensation, CNY70,000 106,057,84 on 2012 Nov. 4 for acquiring 2.01 invested for buying a big truck for transport mu dryland, which was planed to be used for business. The family also spent CNY13,000 for decoration new house and building a kitchen. his son's training for a truck driving licence. His After land being acquired, his family has 4 mu son uses the truck for transporting sands, paddy land, 2.6 mu dryland, and 6 mu sugarcane, coffee, and etc. The son earned forestland. In order to generate more income more than CNY3,000 by December 2013. from limited land, they changed the planting After 1.4 mu dryland (planted with coffee) being pattern of paddy land from 'rice-tobacco' to acquired, his family still has 3.3 mu of paddy 'rice-sweet corn-tobacco' which can earn 50% land, 2.3 mu of dryland, and 8 mu of rubber more. Net incomes of rice, sweet corn and trees. The family is interested in buying some tobacco are CNY 1,000, CNY 1,500 and CNY paddy land, but too expensive to buy. 1,500 per mu respectively. New pattern needs Alternatively, the family will think about renting more labor inputs, so they worked harder, but paddy land from neighbors at CNY1,500 per happy. Besides, his son does more parttime year in the coming years. wage work not far from the village earning CNY2,000 more than before. The family changed cropping pattern of paddy land from two harvests to three harvests per The acquired land of 2.01 mu used to cultivate year. In addiiton, the family had some additional sugarcane with a net income of about CNY800 investment on rubber rubber trees in 2012, per mu per year. The loss is CNY1,600; while which will be ready for harveting glue solute in the family could get an extra incme of CNY 2013. 3,500 by cropping pattern change and wage work.

Case 10 Ms. XIE Yebao, 42 years old, ethnic minority group of Dai, lives with her husband, son, daughter-in-law and 1 month old grandson. Her family received a compenstion of about CNY300,000. Of which: (i) CNY80,000 spent for a car; (ii) 220,000 saved in the rural credit cooperatives.. Her family has a small shop. After 5 mu paddy land being acquired, her family still has 4 mu paddy land, about 100 mu dryland and 20 mu forestland. The paddy land was also changed from two harvests to three harvests per year (paddy-sweet corn–sweet corn). The dryland are planted with rubbers and timber trees. Her husband and son are responsible for cropping , while she is operating the samll shop.

Case 11 Mr. Yilie, Dai, 45 years old, lives with his wife, and a 16-year-old son, in Mengga natural village, Ruili City. His family was acquired of 1.3 mu forestland and received a compemsation of CNY46,000. The land acqustion had no impact on the family, insatead, it is consdiered an extra income for improving the family's living conditions. Of the CNY 46,000 of compensation: (i) CNY 20,000 for laon repayment used for building house 3 years go; (ii) CNY10,000 spent for improving grain drying ground from earth surface to concrete surface; (iii) CNY6,000 spent for a new LED TV; (iv) 5,000 for a new motorcycle and (v) CNY 2,000 for a new refrigerator.

7

Case 12 Mr. Hanshuaiyan, Dai people, 46 years old, lives with his 84 year old mother, 43 year old wife and 22 year old son in Hayunlei village of Jiexiang township in Ruili City. After 2.5mu of paddy land being acquired, the most in the village, his family still has 18 mu of paddy land. In the previous years, the family lent out the majority of its paddy land (a near by farm also rent land from indivicual farmer households for planting banana. As the leader of Hayunlei village, Mr. Hanshuaiyan plans to cultivate aromatic tobacco in order to lead more farmers for better income. In addition, plans were made to train farmers on commercial banana production .

E. Satisfactory Status and Complaints of APs

13. All interviewed households are satisfactory with the land aquisition procedure and compendation payments, as well as the land compensation rates. The monitor did not hear any complaints except the suggestion of mobilzing relocation and new house construction the soonest.

IV. EMDP and GAP Implementations

A. Supports to Ethnic Minoirty Communities

14. During the visits to 7 ethnic minority communities, the monitor leant, that contractors are in good relationship with them and the supports to ethnic minority communities from the contractors are highly appreciated. In addition to direct supports from contractors, as those presented in Longrui’s “2012 Annual Progresses on EMDP and GAP Implementations”, liaison mechanism established between contractors and local communities on labor employment. 15. In the case of Xiaomidi Lisu village, contractor improved the access road and filled a small gully by hiring local Lisu people, including woman. Yet some households started selling vegetables (see Case 13 below). 16. The monitor also leant that contractors unexceptionally celebrated the water-splashing festival with the Dai communities where their camps are located. In addition, the contractor also donated CNY1,000 each to the Batuo natural village4 of Humen Village on Women’s Day and Mid-Autumn Day. Some 20 villagers, including 6 women, had worked as unskilled labors for the contractor. B. Technical Training

17. Local agricultural agencies had carried out a large number of routine technical training for ethnic minority people, including women. For instance, Mangshi City had carried out a series of training of “rice-sweet corn-sweet corn” cultivation (Case 16) and Ruili City had carried out training on “rubber tree management” and “old tea plantation rehabilitation and machine topping” (Case 17 and Case 18).

4 Fourth natural village in Table 2.

8

Case 13 No.1 Contractor improved 1.5 km long of road from Xiaomidi, a village of ethnic minority group of Lisu, to the county road from earth to gravel surface in August 2012. The road is the only path that connects the Lisu people in Xiaomidi to outside. Improvement of the road employed many Lisu labors. Lisu farmers interviewed stated that besides improvement of the road, they were also employed in digging boundary line during DMS, maintainance and repairing the road, piling up sand bags to protect the road from slide etc.. One woman was employed as a cook for the constractor. Several farmers and their tractors were hired to transport stone for the project. Several households sell vegetables, for the first time in the village, to the construction workers. No. 1 contractor also filled and leveled up a gully for the Lisu village, and this ground is to be used to build a village center after being hardened and paved with concrete.

Improved Road Filled Hully

Case 14 Case 15 Agricultural division and husbandry division of Mr. E'ban, a Dai farmer, said that the Longshan Township in Longling County agiricultural bureau of Ruili City and provided technical training on planting walnut agricultural technical station of Mengmao and Anji white tea to farmers in Xiaomidi Lisu Township had provided at least three times of village three times in 2012. Almost all women technical training on crop and animal and most of the men partcipated in the production in Mengga natural village in 2012. training. All interviewed vilagers believed that The training were organized at night when the training was needed and very helpful. farmers came back home from field, and the training were in Dai lanaguage.

Case 15 Since the successful introduction of sweet corn in Mangshi area, it has become a best-sale product since 2012 and was exported to Baoshan, Kunming and even Chengdu Markets. To encourage ethnic minority farmers to scale up sweet corn production, Mansghi township has organized a training in each natural village in 2012. Advised by the agricultural techincal station of Mangshi Township, Demonstration Dai housheold, Mr. Langerxiangzhu, planted 6mu sweet corn and sold 8.04 tons in Dec 2012 at the price of CNY3100/ton due to good timing. His second harvest will be due in mid-April 2013.

9

Case 16 Case 17 The Rubber Association of Ruili City had The Huxing Tea Cooperartive, with support organized a trainer training on integrated pest from the agrcultural bureau of Ruili City, had and disease managment of rubber trees organized a training on «old tea planation duirng 23-24 August 2012. In total, 70 rehabilitation and maching pruning topping» in particpants (trainers), including townhsip July 2012. Some 50 farmers, inculding 20 technical staff and domonstration households. women, attent the training. Specialists from the Yunnan Tropical Agricultral Research Institute, the Chiniese Academy of Science and the Dehong Tropical Agricultural Reseach Institute were invited to train the participants.

C. Good Relationship with Communities

18. It is learnt that the visited ethnic minority villages are in good relationship with the contractors and with the LREC. Contractors and communities keep constant contacts on labor employment and other issues. From time to time Villagers were invited by contractors for drinking and fun. D. Rural Road Maintence Groups of Women

19. Dehong Prefecture Transport Bureau allocated more than CNY 1.5 million to duplicate the ADB granted based pilot rural road maintenance project since 2012. The duplication covered 4 counties and cities. Totally 69 rural road miantenance groups with 261 members are established, over 90% are women. 20. In addition to the establishment of the rural road maintence groups, a number of gender awareness sessions were arried out during the maintenance group mobilization and training. 21. These maintence groups had attracted many national and some international medias since 2012. Government officials and women's federations from a potential ADB road development project area in Shaanxi Proivince, are very interested in this model of gender development and had visited some of the women groups in July 2012.

10

V. Major Conclusions and Recommnedation

A. RP Implementation

22. Implementaion of RP has been going on smoothly in 2012, and no any complain so far. 23. Land acquisition affected households have been trying their best to widen their income sources and increase their income. Most compensation have been spent on purchasing production tools or investment, which had generated income and will generate more income if managed well. Various local government departments provided an large number of technical training to affected households, which are very helpful for their livelihood restoration. 24. Relocation households, altough relocation not fully started, are with great hope to their new houses.

B. EMDP and GAP Implementations

25. The contractors and their workers have awareness and good knowledge of local ethnic minority cultures. Contractors are in harmoney with lcoal ethnic minority communities and had given various supports to EM communities. 26. Local governments at various levels are doing their best to support ethnic minoity development. Specifically, a large number of technical training on agricultural production were organzied and whichgreatly benefited EM people, inclduing women. 27. The rural road maintence groups of women were considered as very successful. C. Recommendation

28. LREC should mobilze and speed up relcoation of affected households in 2013 as affected households had been expecting since 2012.

11