Resettlement Planning Document

Updated Resettlement Plan Document Stage: Final Project Number: 42383 January 2011

People’s Republic of China: Shanxi Small Cities and Towns Development Demonstration Sector Project– Youyu County Subproject

Prepared by Youyu County Project Management Office (PMO)

The updated resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

Resettlement Plan

Shanxi Small Cities & Towns Development Demonstration Project

Resettlement Plan

For Youyu County Subproject

Youyu County Development and Reform Bureau

30 September， 2008

Shanxi Urban & Rural Design Institute 1 Youyu County ADB Loan Financed Project Management

Office

Endorsement Letter of Resettlement Plan

Youyu County Government has applied for a loan from the ADB to finance the District Heating, Drainage and wastewater network, River improvement, Roads and Water supply Projects. Therefore, the projects must be implemented in compliance with the guidelines and policies of the Asian Development Bank for Social Safeguards. This Resettlement Plan is in line with the key requirements of the Asian Development Bank and will constitute the basis for land acquisition, house demolition and resettlement of the project. The Plan also complies with the laws of the People’s Republic of China, Shanxi Province and Youyu County regulations, as well as with some additional measures and the arrangements for implementation and monitoring for the purpose of achieving better resettlement results.

Youyu County ADB Loan Project Office hereby approves the contents of this Resettlement Plan and guarantees the implementation of land acquisition, house demolition, resettlement, compensation and fund budget will comply with this plan. This Resettlement Plan was compiled according to the project Feasibility Study Report and data of the socioeconomic investigation. If the final contents of project implementation are different from the Feasibility Study Report, this RP will be amended and re-submitted to the ADB for approval before its implementation.

Mr. Li Feng vice mayor Youyu County Government

Vice Director Youyu County ADB Loan Leading Group

Date: 30 September 2008 Resettlement Plan

Abbreviations and Acronyms

Note: While all acronyms and abbreviations are defined in the text, this list is presented to highlight the most important ones.

AAOV Average Annual Output Value ADB Asian Development Bank AP Affected People CNY Abbreviation for Yuan, PRC’s currency CPMO County Project Management Office DI Design Institute DRC Development and Reform Committee EA Executing Agency FSR Feasibility Study Report HH Household IA Implementing Agency mu Chinese land area unit of measure: 1 mu = 0.0667 ha NGO Non-government Organization PAH Project Affected Household PLG Project Leading Group PMO Project Management Office PRO Project Resettlement Office RIB Resettlement Information Booklet RMB Renminbi—another word for the PRC Currency, the Yuan RP Resettlement Plan SES Socioeconomic Survey

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Table of Contents

Abbreviations and Acronyms...... 2 Executive Summary ...... 5 1 Introduction and Background of the Project...... 8 1.1 Introduction ...... 8 1.2 Project Background...... 9 1.3 Project Description ...... 10 1.4 Measures for Mitigating Land Acquisition and Resettlement...... 11 1.5 Principles and Objectives ...... 12 2. Project Impact ...... 13 2.1 Project Content ...... 13 2.2 Impact Inventory Survey...... 14 2.3 Affected Inventory ...... 15 2.4 Impact Analysis ...... 19 3. Social Economic Profile of Affected Areas ...... 21 3.1 Social Economic Profile of Youyu County ...... 21 3.2 Overview of Xincheng Town...... 22 3.3 Social Economic Profile of Affected Villages ...... 23 3.4 Soci-economic Survey...... 24 3.5 Socio-economic Situation of Affected People...... 25 3.6 Gender Analysis...... 30 3.7 Project Impact Analysis...... 33 4. Participation, Consultation and Appeal...... 36 4.1 Identification of Stakeholder ...... 36 4.2 Consultation of Project Preparation Process...... 36 4.3 Public Participation...... 45 4.4 Disclose of Policy and Plan ...... 48 4.5 Grievance and Appeal...... 50 5. Legal Framework and Resettlement Policy ...... 54 5.1 Policy Basis...... 54 5.2 Relevant Provisions of Law and Regulation ...... 55 5.3 ADB Policies ...... 66 5.4 Compensation standards for the Project ...... 67 5.5 Entitlement Matrix of Affected People ...... 70 6. Income Restoration and Resettlement Plan ...... 72 6.1 Objectives and Principles ...... 72 6.2 Resettlement Tasks...... 73 6.3 Economic Rehabilitation Plan for Affected Households...... 74 6.4 Training Plan ...... 80 6.5 Assistance to Women...... 81 6.6 Assistance to vulnerable Group ...... 81 7. Institutional Arrangement and Management...... 83 7.1 Institutional Establishment...... 83 7.2 Institutional Responsibilities ...... 84

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7.3 Institutional Relationship ...... 85 7.4 Measures ...... 85 8. Monitoring and Evaluation and Report ...... 86 8.1 Internal Monitoring...... 86 8.2 External Monitoring ...... 87 8.3 Reporting Plan ...... 90 9. Project Implementation Plan...... 92 9.1 Work before the Implementation ...... 92 9.2 Work during the Implementation ...... 92 9.3 Work after the Implementation ...... 94 9.4 Fund Disbursement...... 94 10. Resettlement Compensation Estimate ...... 95 10.1 Basis ...... 95 10.2 Methods of Estimate...... 95 10.3 Estimates results...... 96 10.4 Fund Flow ...... 97 Appendix 1 Resettlement Information Booklet ...... 99 Appendix 2 Affected villages Meeting Minutes ...... 107 Appendix 3 TOR for External Monitoring and Evaluation ...... 113

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Executive Summary

1. Description

To enhance the developing speed of infrastructure construction, to improve residents’ living environment, to strengthen tourism capacity, to attract the investment and capital from outside, to generate more employment chances and to promote economic development of Youyu county, Youyu county government plans to take advantage of ADB loan to carry out the “Small Cities & Towns Development Demonstration Sector Project of Youyu County in Shanxi Province” (Project). Under the guidance of PLG, Youyu County DRC (where the CPMO is established) is the EA of this subproject.

This project includes four components including district heating supply, water supply and drainage, road construction and flood control. The (1) district heating supply component contains new heating area of 1.5million m2, one boiler house, 12 heat transfer stations and heat supply pipelines which is 9,100m long; (2) the water supply and drainage component contains 2 new wells, water supply pipeline networks which are 32,460m long, reconstruction of existing water plant, rainwater pipelines which are 14,900m long, wastewater pipelines which are 13,100m; (3) the road construction component includes construction of Hengsi, Hengliu and Hengjiu streets, and Zongwu, Zongliu, Zongqi and Zongba roads which are major and minor streets and roads in new district and the total length is 10.14km; and (4) the flood control component covers river channel of 4,850m long, including earthwork engineering, channel foundation, structure layers, and channel wall construction.

In order to minimize the impact from land acquisition, relevant agency has already consulted the local government and affected village committees, and has already designed the FSR of this subproject. The RP is based on the FSR, and needs to be improved continuously according to the detailed design in the future. IA tries its best to reduce the impact on community into the minimum.

In accordance with FSR, the affected area includes 1 county and 3 villages with, 116 households and 454 persons to be affected and all of them will be affected by permanent land acquisition.

2. Policy Framework and Rights

This RP is designed in accordance with relevant policies and regulations from PRC, Shanxi Province and Youyu County Government, and Involuntary Resettlement from ADB, No.31 Order established by State Council of PRC.

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In accordance with land laws and regulations of PRC, the resettlement principles are: 1) the compensation and entitlements are provided for the AP, at least their existing living level has to be maintained, and their future life will be improved; 2) all affected people, no matter they are officials or common people, will be rehabilitated well and compensated fairly; 3) If the per capita cultivable land couldn’t meet livelihood needs of affected people, cash or in kind compensation will be provided for the acquired land in order to restore their incomes; 4) All the affected people have to be informed the relevant rights, compensation expense and standard, living and income restoration plan, project proceeding schedule. They have to participant in the implementation of RP. 5) Before affected people receive replaced land or get enough resettlement subsidy, the land will not be acquired; 6) Youyu county DRC which is the IA of subproject will monitor the implementation of RP; 7) Vulnerable groups will get the special support to ensure their living quality and in order to make the affected people benefiting from the project; 8) RP will be linked to the planning of all the city/county/region; 9) Resettlement estimate cost will cover all aspects of compensation which is necessary for project.

3. Responsible Agency

Youyu county government and Youyu County Development and Reform Bureau as implementation agency will be responsible for the project implementation and resettlement implementation. PRO will be composed by the officials from 12 concerned units such as Youyu county DRC, Land Management Unit, Urban Construction Unit, etc. All the affected committee and village will provide one staff for PRO, which will be in charge of land acquisition, resettlement and income restoration.

4. Public Participation

Public participation is the key element of the RP, many consultation meetings were held from February to May of 2008 in the project area, the participating units are Youyu county DRC, PRO, Land Resources Bureau, Civil Affairs Bureau, Women Union, Urban Construction Bureau, non-government organizations and affected villages. During consultation meetings various opinions were collected from affected villages and individuals. The project also carried out impact and social economic surveys in 3 affected villages. These meetings and surveys have great impact on formulating resettlement policy and compensation standards, and more consultation meetings will be carried out in implementing the resettlement plan. The affected people have already participated in the RP preparatory process, and the problems and suggestions they are concerned are all included in the project RP.

5. Grievance and Appeal

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AP could appeal about land acquisition, resettlement, income restoration and compensation. The appeal procedure is identified in the RP and specified in Resettlement Information Booklet. This procedure is explained to AP in the public consultation meetings held by Youyu county Government.

6. Cost Estimate

According to the project FSR and subsequent survey and prepared resettlement plan, resettlement cost is about CNY 25million yuan, which includes contingency set at 10% of basic compensation fund. The resettlement cost will be readjusted during implementation, and project IA will ensure that enough resettlement cost will be used to solve the resettlement problems.

7. Schedule

Land acquisition is planned to start from May to August of 2009, lasting 4 months. According to No. 31 order from State Council, only after the affected people receive full compensation, the construction could start.

8. Monitoring and Reporting

The implementation of resettlement will undertake the internal and external monitoring. The PRO will be in charge of internal monitoring, and submit resettlement progress report to ADB. The content of internal resettlement monitoring reports will focus on implementation schedule and whether it complies with the requirements of RP and compensation policy. Youyu county DRC will hire external monitoring agency to carry out the external monitoring and evaluation to ensure that the AP will maintain their living level and will not cause the lost by the subproject.

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1 Introduction and Background of the Project

1.1 Introduction

The basis of Resettlement Plan for the Small Cities & Town Development Sector Project of Youyu County in Shanxi is as follows: (1) Relevant Regulations of the ADB, including Involuntary Resettlement, Operations Manual，2003 and Gender Checklist: Resettlement, March,2003；(2) Chinese laws and regulations, including Land Administration Law, and Decision of the State Council on Deepening the Reform of Land Management; (3) Local regulations and policies, including Shanxi Provincial Implementation Regulation of Land Administration Law; Interim Approach on Compensation Collection and Use for Forest Land Acquisition of Shanxi Province, Allocation Approach on Compensation for Farmers’ Collective Land Acquisition Of Shanxi Province and relevant policies and regulations of Youyu County; (4) Other relevant guidelines for social safeguards. All these will provide legal framework to take measures to restore the income of those AP and mitigate the adverse effect of the project.

For both ADB and the Chinese government, the basic purpose of the RP is to ensure that full support will be provided to those who will be inevitably affected and lose their land or property because of the project, so that they can have a correspondent standard of living and even lead a better life in the absence of the project.

Youyu County DRC is the executive agency in charge of the project. The project leading group for the small town construction projects financed by the ADB plays a supervisory function.

The RP is based on the following data: (1)the project report, in particular, the project's FSR; (2) the asset inventory surveys relevant to the project; (3) the socio-economic survey of the affected areas and affected people from April and May this year; (4) consulting the opinions and suggestions from affected people.

It is basically confirmed that the engineering data of the RP comes from the FSR. However, before land acquisition and in-depth evaluation of the impact of resettlement according to a detailed measuring survey, the data and information of the resettlement impact and cost will go through reexamination and revision, and the RP will be updated. The results of the detailed surveys will be reflected in the updated RP, and the final budget will be submitted. The revised plan will be sent to the ADB for approval and will be released to the AP. Finally, the RP will be approved by the Youyu County Government, and submitted to the ADB for approval.

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1.2 Project Background

The small cities and towns construction is the necessary way to solve “Agriculture, Countryside and Farmers” problem, develop rural economy, reduce the gap between city and countryside, realize the harmonious development of rural and urban economy, and build the harmonious society. It is stated in the national 11th five year plan that the harmonious development of large & medium cities and small towns should be held on, the comprehensive carrying capacity of city and town should be improved, urbanization should be promoted according to the rules as developing gradually, saving farmland, centralizing the development, designing the reasonable layout, etc., and dual structure of cities and countries will be changed. In order to realize the leading spirit and guidelines of CCP Central Committee, State Council, and Provincial Government, our province puts forward the decision to build a group of modern demonstration towns with complete function, related facilities and beautiful environment on the basis of studying small cities and towns construction project financed by the ADB.

The Xincheng town in Youyu County is one of the demonstration towns designated by the Provincial government. The Infrastructure Project is listed as Economic Development of Demonstration Town in Shanxi Province Financed by ADB Loan, and the FSR has already been finished. In order to work out a reasonable and feasible RP so that AP will be properly compensated and rehabilitated and to ensure the smooth implementation of the project, Youyu County DRC had entrusted Shanxi Urban Planning and Design Institute to prepare the Resettlement Plan

Located in the northwest border of Shanxi, Youyu County, rich in timber, adequate light, an excellent atmosphere, is the national ecological demonstration areas and eco-tourism areas in Shanxi Province. In addition, with a long history, Youyu County has rich tourism resources, and undertakes the role of connecting traveling routes between Datong City and Inner Mongolia. Owing to the frequent wars in history, multi-ethnic groups used to live together in Youyu County. Therefore, having embraced various cultures, Youyu County has rich Frontier Cultural heritage.

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（Youyu County）

To sum up, with excellent conditions for development of eco-tourism and frontier tourism, tourism service in Youyu County has become the main direction in the development of county economy. However, away from central cities, natural conditions are extremely unfavorable for its agricultural production. Besides, lagging behind in the economic development in history and with poor infrastructure, it is one of the state-level poverty-stricken counties. So it is hard to meet the requirements of tourism needs. To change the backward situation as soon as possible, Youyu County has proposed development goals with the tourism as the driving industry and the processing of green food as leading industry.

This small cities and town development project includes district heating supply, water supply and drainage, road construction, and flood control. Its goal is to accelerate the pace of urban infrastructure construction and improve their living environment, to enhance tourist reception capacity and create favorable external conditions for Trade and Investment Promotion, and to provide more job opportunities for local residents, thereby promoting economic development of Youyu County.

1.3 Project Description

1.3.1 Components

In accordance with the FSR of Youyu County Infrastructure Construction Project, the project involves four components including (1) district heating supply, (2) water supply and drainage, (3) road construction, and (4) flood-control. The construction of these components will involve acquisition of 494.1mu of land and no house demolition will be involved. The cost of land acquisition will be included in the gross investment.

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Table 1.3-1: Component of Subproject Land Demolished No. Component Content Acquisition Houses (mu) （M2） One district heating boiler house, 12heat District Heating 1 transfer stations, 9100m heat supply 33.6 0 Supply pipelines. 2 new wells, water supply pipeline networks Water Supply 32640m, reconstruction of existing water 2 0 0 and Drainage plant, rainwater pipelines network 14900m, wastewater pipeline networks 13100m. 7 major and minor roads and streets, which Road are 10.14km long totally, they are Hengsi, 3 315.0 0 Construction Hengliu, Hengjiu streets, and Zongwu, Zongliu, Zongqi, Zongba roads. The length of flood control channel is 4850m，the construction content includes 4 Flood Control 145.5 0 earthwork, channel foundation, structure layers and channel wall. 5 Total 494.1 0

1.3.2 Impact Scope

In accordance with the FSR of Infrastructure Construction of Youyu County in Shanxi Province, the construction site is located in the new district and some areas in the north of Youyu County Town. In addition, the district heating, water supply and drainage and road construction are all placed in the New District of the County. According to preliminary survey, the affected scope for the construction of the Project includes three villages in Xincheng Town (County’s location). They are Youfang Village, Maguantun Village and Zhangjiadian Village.

1.4 Measures for Mitigating Land Acquisition and Resettlement

In accordance with the requirements of reducing land acquisition and resettlement and minimizing the impact of the project, Youyu CPMO and DI have carried out a detailed study and considered a number of optimization plan:

1. District heating supply: Four heat transfer stations in North-ring District will be built by updating existing small boiler houses, not involving new land acquisition and resettlement, thereby saving land of about 900 square meters. 2. Water supply and Drainage t: Both water sources and waterworks will make use of the existing land and facilities in the water company, and the new facilities are arranged on the existing land, saving land of about 3,000 square meters. 3. Road construction: It is suggested that when the road is constructed, the implementation plan of roadway first and then sidewalks should be adopted, so that sidewalks can be used as temporary construction sites, thereby saving temporary land of about 124.8 mu.

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4. The route of the flood-control channel is optimized, by avoiding the enterprises, villages, special infrastructure and wind break forest. As a result, the construction of the component had avoided relocating one factory with 500 employees, demolishing residential houses of 1500 square meters with 12 households, removing transmission lines of 1,300 meters, and minimizing the acquisition of wind breaker forest of 11mu.

（The Existing Water Plant） （The Existing Natural Ditch）

1.5 Principles and Objectives

1. It is necessary to avoid and mitigate the impact by the construction, technical and economic measures by reducing land acquisition. If the land acquisition is unavoidable, we shall do our best to take effective measures to mitigate the impact on people’s lives and production. 2. During the preparation of the project, social economic surveys are carried and the relevant RP is prepared. 3. The resettlement should be based on asset survey and compensation standard, and aimed to improve or at least recover the original living standard of residents. 4. The developmental resettlement should be preferred. The rehabilitation of rural people should be based on the land, and use secondary and tertiary industry to expand employment. 5. The affected people should be encouraged to participant in the resettlement planning. 6. The affected people and original residents should gain benefits from the project. 7. As for those special population that need special care, extra mitigating measures and compensation should be provided to them in order to make them live better.

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2. Project Impact

2.1 Project Content

In accordance with the FSR of Infrastructure Construction of Youyu County in Shanxi Province, the project involves district heating supply, water supply and drainage, road construction, and flood-control project, needing a total of about 494 Mu of land acquisition.

1. District Heating Supply

The scope of district heating supply covers North-ring District and Planned New District of Youyu County. The district heating aims to provide heating fro additional 1.5 million square meters. The main construction content is as follows: one boiler house for central heating, twelve heat transfer stations, a heat supply network with the length of 9,100 meters. The district heating boiler house will be located at the west side of Wai Huanlu of Planned New District and covers an area of 20,000 square meters; heat transfer stations will be located in North-ring District and Planned New District of Youyu County, among which four heat transfer stations in North-ring District will be built by upgrading the existing small boiler houses, not involving land requisition and demolition and eight heat transfer stations in Planning New District will be newly built, with an area of about 2,400 square meters; a heat supply network will be located under the planning and existing roads, not involving land acquisition and resettlement. About 33.6mu of land will be acquired for the district heating supply.

2. Water Supply and Drainage

Water Supply and Drainage mainly includes: two deep wells drilled in water sources, coordinated construction and transformation of water distribution network with the length of 32,640 meters; reconstruction and expansion of existing waterworks; county rainwater pipe network supporting with the length of 14,900 meters; county sewage pipe network supporting with the length of 13,100 meters. Among these, both water sources and waterworks will make use of the existing land and facilities in the water company; water supply, rain water and sewage pipe network will be located under the planning and existing roads. Therefore, this project will not involve land acquisition and resettlement.

3. Road Construction

Road construction project involves: seven main and minor roads in New District of the County with the total length of 10.14 km, including Hengsi Street, Hengliu Street, Hengjiu Street, Zongwu Road, Zongliu Road, Zongqi Road and Zongba Road. Among these, Hengsi Street is 1.6km long and its red line is 18 meters wide; Hengliu Street is 2.03km long and its red line is 12 meters wide; Hengjiu Shanxi Urban & Rural Design Institute 13 Resettlement Plan

Street is 2.11km long and its width is 24 meters wide; Zongwu Road is 1.08km long and its red line is 24 meters wide; Zongliu Road is 1.26km long and its red line is 24 meters wide; Zongqi Road is 1.32km long and its red line is 30 meters wide; Zongba Road is 0.76km long and its red line is 24 meters wide. About 315 Mu of land will be requisitioned for the road construction project.

4. Flood -Control

The flood-control channel project begins with the end of the natural gully on the northern side of the county and the west side of No.109 national road, extending in the southeast direction as far as northwest end of Maguantun Village, then extending southward and intersecting the Sandao River in the end. It has a total length of 4,850 meters, with the bottom of ten-meter net width and the top occupying totally 20-meter width (including protection distance).The construction mainly includes: earthwork, paving of basis of channel bottom and layer structure and building of the channel wall. About 145.5mu of land will be acquired for the flood-control component.

2.2 Impact Inventory Survey

With the cooperation from related departments in local government, the project resettlement preparation team has fully investigated the indicator, including population, housing, land, special facilities of the affected areas. Asset inventory survey includes: land acquisition survey, survey of population affected by land acquisition and resettlement, survey of demolishing housing and auxiliary facilities, scattered tree survey, survey of rural productivity and living facilities, special facilities survey, etc.

Land acquisition survey: After DI set out various types of site surveys and determined the scope of the land acquisition, in accordance with measured topographic maps and determined boundary markers made by setting out on site and according to the land use situation, the team investigating the area will identify the affected area on the basis of ownership and land types.

Survey of demolishing housing and auxiliary facilities: demolishing housing survey would use door-to-door measurement on site and will be respectively registered according to ownership and structure. And its auxiliary facilities will be respectively registered as well.

Special facilities survey: special facilities survey, including water conservancy, electric power, telecommunications, will be verified and registered in the field by investigators and relative staff of the administrative department on the basis of administrative departments’s sources available.

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AP survey: the project’s affected population involves two categories: land acquisition and resettlement. Sampling survey will be carried out among the affected population, including nation, age, educational level and employment conditions.

2.3 Affected Inventory

2.3.1 Impact Type

At the feasibility study stage, the IA and Projects’ Design and Research Institute will take measures to minimize land acquisition and resettlement, but inevitably it will have an impact on the following properties:

(1) Land: The land occupation of the project is surveyed according to planned and construction sites of the proposed components. Because all the project construction will be implemented within planned and construction sites of the proposed components, the land occupation of the project is permanent, not temporary. According to the survey, the land occupation of the project only involves collective land and land types include farmland and woodland.

(2) Resettlement: there is no need to demolish any houses and relocate any people within project construction area.

(3) The affected population: the affected population of the project is all population affected by land acquisition. The land in the affected area is all cultivated by contractors themselves. Since no land is sublet to others, all population is affected by the project directly and there is no indirectly affected population. In addition, the project influence only involves the agricultural population, but not non-agricultural population; it only involves Han population, but not the minority population.

(4) Ground fixtures and property: it includes ground attachment within the project affected areas, such as transformers, agro-transmission lines, machine wells and timber trees.

2.3.2 Land Acquisition and Resettlement Impact

According to survey, the areas affected by the project land acquisition include three villages in Xincheng Town (County seat location): Youfang Village, Maguantun Village and Zhangjiadian Village. The project impact asset inventory can be seen in the table 2.4-1.

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Table 2.3-1: Impact Asset Inventory asset inventory

No Affected Items unit Youfang Maguantu Zhangjiadi Total Village n Village an Village

1 Affected villager group 1 1 1 3

2 Permanent land Mu 136 325 33 494

2.1 Collective land Mu 136 325 33 494

2.1.1 cultivable land Mu 136 287 33 456

2.1.2 Woodland Mu 0 38 0 38

3 Affected People 150 270 34 454

3.1 Household 38 68 10 116

3.2 Population 150 270 34 454

3.3 HHs affected directly 38 68 10 116

3.4 AP affected directly 150 270 34 454 AP affected by 4 0 0 0 0 resettlement Affected Enterprises and 5 0 0 0 0 units Affected private individual 6 and commercial units 0 0 0 0

7. Subsidiary Facilities

7.1 Transformer 1 0 0 1

7.2 Wire m 700 0 0 700

7.3 Machine well 2 —— —— 2

7.4 Timber tree 306 1227 35 15a Except above facilities, there are no other facilities affected.

2.3.3 Amount of Permanent Land Acquisition

According to survey, object index schedule affected by the project’s permanent land acquisition can be seen in the table 2.3-2.

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Table2.3-2: Major Impact Inventory Villages No. Affected Items unit Youfang Maguan Zhangjiadian Total Village Tun Village 1 Permanent land requisitionMu 136 325 33 494 1.1 Farmland Mu 136 287 33 456 1.2 Woodland Mu 0 38 0 38 2 Ground Attachment 2.1 Transformer 1 —— —— 1 2.2 Transmission line M700 —— —— 700 2.3 Machine well 2 —— —— 2 2.4 Timber tree 306 1227 35 1568

2.3.4 Affected Population

According to projects’ influence survey, statistics of the affected population of the three villages— Youfang Village, Maguantun Village and Zhangjiadian Village— can be seen in the following table.

Table2.3-3 population affected by project land acquisition Affected Population No. Affected Items unit Youfang Maguantun Zhangjiadian Total Village Village Village 1 Villager groups affected by Land-acquisition 1 1 1 3

2 HHs affected by Land-acquisition 38 68 10 116

3 total population affected by Land-acquisition 150 270 34 454

2.3.5 Loss of Cultivable Land

1. Loss of Agricultural Income

According to the survey, the loss of cultivable land caused by permanent land acquisition is shown on table 2.3-4.

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Table 2.3-4: Loss of Agriculture Asset inventory No. Item Unit Youfang Maguantun Zhangjiadian Total village village village Average Annual 1 Output Value 1.1 AAOV for Crops Yuan/mu 840 840 840 840 1.2 AAOV for forest Yuan/mu 600 600 600 600 2 Loss Area mu 136 325 33 494 2.1 Cultivable Land mu 136 287 33 456 2.2 Forest Land mu 0 38 0 38 10000 3 Crop Income Loss 11.42 26.39 2.77 40.58 yuan/year

2. Vulnerable Group Affected by Cultivable Land Acquisition

In accordance with survey, the status of vulnerable group affected by the permanent cultivable land acquisition is shown on Table 2.3-5. About 29 households belong to vulnerable groups.

Table 2.3-5: Vulnerable Group Affected by Cultivable Land Acquisition Maguantun Zhangjiadian Youfang village Subtotal Type village Village HH AP HH AP HH AP HH AP

Poor HH 0 0 0 0 1 2 1 2

Single parent 0 0 1 2 0 0 1 2 family Women headed 0 0 0 0 0 0 0 0 HH The elderly HH 1 2 1 2 0 0 2 4

HH with disable 1 4 0 0 0 0 1 4 people HH with long-term 2 7 2 10 0 0 4 17 patient

Total 4 13 4 14 1 2 9 29

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2.4 Impact Analysis

According to the impact survey, the construction of the Project involves only permanent land acquisition and demolition of certain attachments. No house demolition will be involved for residents, enterprises, and individual shops as well as related facilities.

The construction of the Project will involve permanent land acquisition of 494 mu of land areas, including 456 mu of farmland and 38 mu of forest land. The acquisition of 456 mu of farmland will destroy part of production system in three affected villages and cause impacts on the livelihood and result in income reduction for affected households. Table 2.4.1 provides a summary of such impact.

Table 2.4-1: Land Acquisition Impact for affected Villages

Per Per Total Total % of Land capita capita Villages HH Population Farmland Acquired Farmland (mu) loss land land (mu) before afters

Youfang 423 1431 4745 136 2.9% 3.32 3.22

Maguan 137 494 3575 287 8.0% 7.24 6.66

Zhangjiadian 87 355 2245 33 1.5% 6.32 6.23

Total 647 2280 10565 456 4.3% 4.63 4.43

In Youyu County, the per capita land holding is relatively large, averaging 4.63 mu. The land acquisition would cause reduction of farmland by 4.3% for the affected villages, ranging from 1.5% for Zhangjiadian Village to 8% in Maguantun Village. After land acquisition, the average land holding will still be 4.43 mu for these three villages, ranging from 3.22 mu per capita for Youfang Village to 6.66 mu per capita in Maguantun Village. For affected households, the land acquisition would cause reduction of 18.6% of their current land holding, with per capita farming being reduced from 5.41 mu to 4.41 mu, ranging from 2.1 mu in Youfang Village to 5.85 mu in Zhangjiadian Village. Such land holding after land acquisition would still ensure grain production for the affected households.

Table 2.4-3 summarizes the different degree of farmland impact among affected households.

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Table 2.4-2: Land Acquisition Impact for affected People Total Acquired Percent Land loss PerCapita Per Affected Affected Farmland Capita Villages HH Persons Farmland Farm of land per (mu) land (mu) Loss (%) household Before per Farmland person After Youfang 38 150 452 136 30.2% 3.57 3.01 2.10 Maguan 68 270 1774 287 16.2% 4.78 6.57 5.51 Zhangjiadian 10 34 232 33 14.2% 3.30 6.82 5.85 Total 116 454 2458 456 18.6% 4.26 5.41 4.41

Table 2.4.3: Land Loss Impact Among Affected Households Scope HH HH HH HH HH HH HH No. Per HH Land 10%～ 30%～ 50%～ 70%～ 90%～ Total ﹤10% 100% Holding 30% 50% 70% 90% 100% 1 Youfang 1.1 ﹤3mu 1.2 ﹥3mu 8 17 7 5 1 38 2 Maguan 2.1 ﹤3mu 2.2 ﹥3mu 20 42 4 2 68 3 Zhangjiadian 3.1 ﹤3mu 3.2 ﹥3mu 6 4 0 0 10 Total 34 63 11 7 1 116 % of Total 29.3% 54.3% 9.5% 6.0% 0.9% 0.0% 0.0% 100.0%

According to Table 2.4-3, among 116 affected households, 29.3% would lose less than 10% of their land holdings; 54.3% would lose 10% to 30% of their current land holdings; 9.5% of them would 30% to 50% of their land holdings; and 6% of households would lose 50% to 70% of their land holdings; and 0.9% of households would lose 70% to 90% of their land holdings. Since most of them would still have certain amount of farmland remaining and since the yield of the farmland is relatively poor, most of the affected households would prefer cash compensation and hope to use compensation fund to engage non-land based income generation activities in order to improve their current conditions.

Through social economic survey, the social economic conditions of the affected villages are very similar with close distance. Most of the income came from migrant labors with income from planting is quite limited, which was 12% for Youfang Village, 32% for Maguantun Village, and 23% for Zhangjiadian Village. Since all these villages are located near the town center with relatively abundant migrant labors and small business opportunities. By having cash compensation, the affected people could expand their income from non-land based income generation activities so that their income could be restored or even improved.

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3. Social Economic Profile of Affected Areas

3.1 Social Economic Profile of Youyu County

3.1.1 Geographic Position

Youyu county is located in the northwest of Shanxi province, between 112°07′—112° 38′East longitude, and between 39°41′— 40°17′North latitude. It neighbors on Great Wall, Liangcheng County and Linge’er County of Inner Mongolia Province in the north, Pinglu area in the west, Shanyin county in the south, Zuoyun county in the east. The width of the county is 45.6 km from east to west, and length is 67.7km from north to south. The shape of the county is like a wide leave and total area is 1,964 km2.

3.1.2 Social Economy

Youyu County is located in the northwest road from Shanxi province to Inner Mongolia. It is under the influence of economic development by Datong city, Shuozhou city, Taiyuan city and Huhhot city. Located in the crossing area of different economic districts, the economy of Youyu county will be influenced by development of counties and cities around greatly. When rezoning the agricultural economy of Shanxi province, Youyu County is regarded as the ecological farming zone in Yanmenguan. Youyu County is one of the most unique county with growth potential in the ecological farming zone, and will play an important role in constructing ecological farming economic zone of Yanmenguan.

As to the transportation position, the existing transportation condition is affected by the geographical and historical development. The transportation condition in and out of city is very poor with no railway connection, but along with the construction of expressway from Shahukou to Datong city in the future, transportation of Youyu county will be improved gradually, which will develop the economy of Youyu county and development of urban areas. As for the tourism, Youyu is in the north of Shanxi “Ecological Buffers” with the long history and rich resource. The connection of natural and cultural landscape will make Youyu County laid in the particular position of tourism in Shanxi Province.

Entering in the 21st century, the economic and social development of whole county has gained the obvious achievement. At the end of 2007, the GDP of the whole county reaches RMB 1.367 billion, and it increases by 16.8 % compared with same time in the last year; the disposal income per capita of urban residents reaches 7,811yuan and it increases by 33.64% compared with last year; the rural per capita income reaches 2,075 yuan, and it increases by 15.2% compared with last year. At present, the whole county holds on the main task of building a well-off

Shanxi Urban & Rural Design Institute 21 Resettlement Plan society, get every chance to develop, make the economy develop fast, improve developing quality, and promote the favorable investment environment.

3.1.3 Natural Condition

The landform of the whole county belongs to the loess hilly area, and the hilly & mountainous area covers 88.1 % of the whole land area of county. The landform, high in the south and low in the north, is surrounded by the hills, and the Cangtou River is flowing through the whole county from south to north. The slope of hills is not abrupt, the basin is surrounded by hills, and the landform is flat.

The climate of Youyu county is temperate continental climate, the winter is long and snow is not much; it is dry and windy in spring, and the temperature recovers very fast; it is warm in summer, the amount of rainfall is moderate and it is not quite hot; the temperature reduces very fast in fall, and it is cool; the natural rainfall is not quite often, evaporation is frequently happened; disaster is frequent, there is dryness and strong wind in spring, hailstone, heavy rain and flood in summer, frost in fall, and freezing wind in winter. The sunshine is strong and sunshine period is long, temperature difference is obvious, non-frost time is short, and the climate feature of whole county is dry and windy. The water resource of Youyu County is from two large water systems, that is, Yellow River and Hai River. The Cangtou River, Maying River, Oujia River and Dasha River all belong to Yellow River system. Yuanzi River belongs to Haihe water system.

3.2 Overview of Xincheng Town

Xincheng Town, the total area of 174 square kilometers, is located in the middle of the Youyu County. There are 11 residential committees and 29 villages in Xincheng Town.

The town is 79km from Inner Mongolia, 91km from Heliner county, 151km from Huhhot city 113km from Shuozhou city, 83 km from Pinglu urban area, 77km from Shanying county, 20km from Zuoyun county，83km from Datong City， 295km from Taiyuan City, and 463km from Beijing City.

At present, with prosperous market economy and relatively perfect business services and public facilities, Xincheng Town is the county's political, economic and cultural center.

At the end of 2007, the town's total population rises to 46,650, of which 3,900 households with 14050 people are agricultural population and 32,600 people are urban population. The total arable land covers 67,259mu, producing 1,443 tons of grain, 160 tons of oil seed. The total agricultural income is 815 million yuan and rural per capita net income was 2,176yuan in 2007.

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3.3 Social Economic Profile of Affected Villages In accordance with the Feasibility Study Report of Infrastructure Construction of Youyu county in Shanxi Province, the land acquisition will affect three villages in Xincheng Town: Youfang Village, Maguantun village and Zhangjiadian Village. According to the Statistical Yearbook of Youyu County in 2007, basic conditions of the villages are detailed in the following table:

Table 3.3-1 Table on the basic situation of Affected Villages Xincheng Town（location of county No. Item Youfang Maguan Tun Zhangjiadian Village Village 1 Number of Village group 1 1 1 2 Household number 423 137 87 3 Population 1431 494 355 4 Cultivated land (mu) 4745 3575 2245 5 Crops 5.1 Area(mu) 3858 2428 2083 5.2 Yield(ton) 135 63 61 5.3 Amount per mu (kg) 35 26 29 6 Oil plants 6.1 Area(mu) 488 1147 178 6.2 Yield(ton) 11 22 4 6.3 Amount per mu (kg) 22 19 20 7 Pasturage 7.1 Cow 22 57 0 7.2 Livestock 38 158 2 7.3 Sheep 421 1067 610 7.4 Pig 225 69 74 7.5 Scalper 10 108 0 7.6 Muley 24 49 0 8 Agricultural income 8.1 Gross agricultural income (10000 yuan) 1013 290 213 8.2 All kinds of expense (in 10,000yuan) 662 196 149 8.3 Net income(in 10,000yuan) 351 94 64 8.4 Villager’s income (in 10,000yuan) 382 105 71 9 Per capita income for villagers 9.1 Per capita net income (yuan) 2670 2125 2000 9.2 Per capita animal husbandry income 1076 1012 704 9.3 Increase (%) 23.67 14.62 3.36

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3.4 Soci-economic Survey

With the active cooperation of the government within the scope of the project, the resettlement preparation team had investigated basic conditions of the affected households and their views and opinions on land acquisition and resettlement within the affected scope from April to May,2008. The main purposes are as follows:

(1) The positive significance of publicizing construction projects to the affected residents; (2) Understanding socio-economic profiles of the affected people who will be affected by land acquisition for the construction projects; (3) Identifying the AP’s most concerns about land acquisition, property compensation and measures to restore incomes; (4) Analyzing the income and expenditure level of AP to provide accurate basis for the resettlement planning.

Two measures are taken: (1) The small group discussion aims at village-level leaders and representatives of the AP; (2) The sample household survey aims at the affected villagers; The investigators had carried out a comprehensive investigation about the AP’s family pattern, educational level, ethnic composition, household property, annual income and expenditure etc. The survey suggests that the land in the affected area is all cultivated by contractors themselves and since no land is sublet to others, all population is affected by the project directly and there is no indirectly affected population. In addition, the project influence only involves the agricultural population, while not affecting non-agricultural population; it only involves Han people, while not affecting the minority groups.

Among 116 affected households, 41 household had been selected as sample households, which accounted for 35.3% of total affected households, ranging from 32.4% for Maguantun Village to 40% in zhangjiadian Village. Among total sample households, 30 percent of them have better economic status, 40 percent are average households, and 30 percent are relatively poor households. So the samples are representative of total affected households, which could be used as basis to analyze the project impact.

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Table 3.4-1: Villages and Households Investigated

Number of Affected Villages Number of Sample HHs Ratio HHs

Youfang Village 38 15 39.47% Maguan Tun 68 22 32.35% Zhangjiadian Village 10 4 40.00% Total 116 41 35.34% Data source：socio-economic survey in the project area.(May, 2008)

3.5 Socio-economic Situation of Affected People

The detailed results of household survey reveal that of the 41householders surveyed, the persons being interviewed included 23 males and 18 females; and all of them are agricultural population. And four households belong to vulnerable groups.

3.5.1 Characteristics of Affected People

The affected people investigated include different regions, gender, age, demographic composition, education and profession. The detailed demographic characteristics can be seen in the following table:

Table 3.5-2 Affected People Youfang Maguan Tun Zhangjiadian All Item Male Femal Male Femal Male Femal Male Fem Total Ratio％ Household 15 22 4 41 Average No. of 4.07 3.68 3.75 3.83 Ages ≤6 2 1 1 1 2 0 5 2 7 4.5 7-19 6 6 7 11 2 2 15 19 34 21.7 20-35 8 7 7 8 0 1 15 16 31 19.7 36-50 7 7 9 9 3 3 19 19 38 24.2 51-60 5 5 8 8 0 0 13 13 26 16.6 61-70 3 3 5 5 1 1 9 9 18 11.5 ≥71 1 0 1 1 0 0 2 1 3 1.9 Total 32 29 38 43 8 7 78 79 157 100 Composition Children 2 1 1 1 2 0 5 2 7 4.5 Students 5 4 7 9 2 2 14 15 29 18.5 Labor force 21 21 24 27 3 4 48 52 100 63.7 The retired 4 3 6 6 1 1 11 10 21 13.4

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Total 32 29 38 43 8 7 78 79 157 100 Education The illiterate 3 4 2 7 2 1 7 12 19 12.1 Primary school 6 7 10 16 2 3 18 26 44 28.0 Middle school 11 10 15 14 2 2 28 26 54 34.3 High school 8 6 7 5 2 1 17 12 29 18.4 Vocational 1 0 2 0 0 0 3 0 3 2.1 education Training school 2 1 1 1 0 0 3 2 5 3.2 Undergraduate 1 1 1 0 0 0 2 1 3 1.9 Total 32 29 38 43 8 7 78 79 157 100 Occupation The 0 0 0 0 0 0 0 0 0 0.0 unemployed Peasants 12 15 14 18 3 4 29 37 66 66.0 Rural workers 2 2 4 1 0 0 6 3 9 9.0 Businessman 2 1 2 1 0 0 4 2 6 6.0 Worker 1 0 1 2 0 0 2 2 4 4.0 Others 4 3 3 5 0 0 7 8 15 15.0 (working) Total 21 21 24 27 3 4 48 52 100 100 Peasant + the 9 11 11 14 2 2 22 27 49 100 2nd profession Note：（1）The retirement age refers to male of over 66 and female over 61, and the labor force refers to people out of school of under these ages and over 16.

The survey of population age suggests that the population distribution is largely normal. Most of them fall into the age group of 20 to 50 years old, making up 43.9 percent of total sample householders. Students make up 18.5 percent of the investigated, which are close to the total population between 7 and 19 years of age (21.7 percent). As for definition of the labor force, it is reported that many family members (male of over 60 and female of over 55) still take part in physical labor. Therefore, the actual population of labor force can be defined as male between 16 and 65 years of age and female between 16 and 60 years of age. According to this definition, the total population of labor force makes up 63.7 percent of the investigated.

Most households’ family members have received junior middle school education, followed by those receiving the primary school education. 1/4 of the investigated have completed or have been receiving education of high school and higher levels, including 8 who have received or have been receiving higher education.

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There is no Master or higher degree in the family investigated. There are 19 illiterates, most of which are the senior people over the age of 60 or children up to the age of 6.

The profession is divided roughly as follows: the elderly and women usually stay at home, doing farm work and engaging in animal breeding; adult male labor force not only work but also do some farm work; young people leave home to work. Professional survey reveals that there is no unemployed labor. 66 percent of labor force investigated is engaged in agricultural production, of which 49 (74.24 percent) work at second professions. Excluding these rural AP the population only doing farm work makes up 17 percent of the total labor force. People engaged in non-agricultural production all year round make up about 1/3 of the total labor resources, among which 6 percent of businessmen, 4 percent of official staff and 24 percent of other professions, such as those engaging in service trades and going out to work.

3.5.2 Land Resources and Land Use

The average per capita amount of cultivable Land of Youfang Village is 3.32 Mu; the average per capita amount of cultivable Land of Maguan Tun is 7.24 Mu; the average per capita amount of arable Land of Zhangjiadian Village is 6.32 Mu. It should be pointed out that among the amount of land possession investigated there are some farmland reclaimed from wasteland or flood land, which is not necessarily identical to land registration.

Table3.5－2 Land Statistics of Households Survey (Mu/household) Family Per capita Villages HH Persons Min. Max. Average Size Farmland

Youfang 15 61 4.07 6 16 13.28 3.27 Maguan Tun 22 81 3.68 15 35 25.34 6.88 Zhangjiadian 4 15 3.75 12 29 22.12 5.90 Total 41 157 3.83 6 35 20.25 5.29

3.5.3 Financial Status

The net income and expenditure of rural population can be seen in Table 3.5-3. On average, the income level of new town’s rural population is about RMB6,148 yuan per capita, ranging from RMB3731 in Zhangjiadian to RMB8373 in Youfang. Because villagers of Youfang Village and Maguantun Village have more channels to increase their incomes, their financial situation is slightly higher than the average level. And survey results are credible.

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Table 3.5-3 Households’ Per-capita Financial Situation in2007(Yuan/per person) Standard Village Category HH Min. Max. Average Variation Agricultural population Youfang Net income 15 2867 13000 8373 4142 Expenditure 15 2737 9583 5351 2821 Agricultural population Maguan Tun Net income 22 3500 12000 6908 3493 Expenditure 22 3280 9760 6084 2653 Agricultural population Zhangjiadian Net income 4 1693 5750 3731 1656 Expenditure 4 1683 2790 2741 511 Agricultural population Total Net income 41 1693 13000 6148 4650 Expenditure 41 1683 9760 5064 3312

Table 3.5-4 shows that, in affected area, first, the income of doing business, followed by wages. Third, wage income of rural workers and fourth, agricultural income. Other items include government agricultural subsidies, poverty relief, family support etc. A few households have loans ranging from RMB 5,000 to 20,000, which are mainly used for education, health care and business capital. Maguantun has a high proportion of agricultural income, while Youfang Village’s is lower.

Table 3.5-4 Households’ Income Sources in 2007 (%) Going out Item Agriculture Salary Business Loan Others Total to work Youfang 11.68 14.90 29.80 30.99 11.92 0.72 100.00 Maguan Tun 31.95 35.94 21.72 3.19 6.79 0.41 100.00 Zhangjiadian 23.21 11.61 16.25 34.82 13.93 0.19 100.00 Total 22.28 20.81 22.59 23.00 10.88 0.44 100.00

Expenditure patterns in 2007 of households surveyed can be seen in table 3.5-5. The affected farmers’ highest expenditure was on food and drink, averaging 45.61 percent of householders’ total incomes. As for 4 HHs , their annual savings was negative, among which one borrowed money due to illness, two were elderly families assisted by the government and one were a women-headed, single-parent family.

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Table 3.5-5 Households’ Expenditure Patterns in 2007 (%) Transportati Clothin Housin Educati Cultural on/ Item Food Health Total g g on Activity communicati on Youfang 52.81 8.20 5.86 7.81 7.45 10.45 7.42 100.00 Maguan Tun 38.40 5.68 4.64 24.11 5.93 9.50 11.74 100.00 Zhangjiadia 61.05 3.24 7.76 11.32 4.01 8.41 4.21 100.00 n Total 50.75 5.71 6.09 14.41 5.80 9.45 7.79 100.00

3.5.4 Identification of Vulnerable Groups

The vulnerable groups will be identified according to survey results. First of all, the investigation of households’ financial situation will be carried out to see whether families belong to (1) women-headed households; (2) families under the minimum standard of living; (3) families with disabled people; (4) the elderly (families without young and strong labor force) and then to see the householders whose annual savings are negative in every village.

For the standards of the vulnerable group affected by the project, a special discussion meeting was held by the CPMO, town PMO, affected village committee and part of village representatives. There were a total of 55 participants (of which 26 were women), including two CPMO leaders, two town PMO leaders, six village committee cadres from every village and 45 representatives of the affected villagers.

The village committee cadres detailed on the vulnerable groups’ basic situation, standards and measures to help and villager representatives fully expressed their views. Through collective discussions and in accordance with the state's relevant policies, a set of criterions comparatively suited to the local conditions, were made at the meeting.

According to those criteria set by the meeting, the project group formulates plans for statistical surveys about the vulnerable groups of every village with the help of the affected village committee. The results show that, among the affected population, there were one poor household, one women-headed, single-parent household, two elderly households (no young and strong labor force in their homes), one disabled household and four households burdened with long-term patients.

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Table 3.5-6 List of Vulnerable groups affected by the project No. of No. of Type Standards HH people Low income & five Families whose annual incomes are lower than guaranteed 1 2 1,300yuan per person households The single-parent The single-parent families with children up to the age 1 2 households of 14 (such as divorce, death) The Women-headed families without young and strong women-headed 0 0 male laborer (between 18 and 55 years old) households the families with the couple over the age of 60/55 and The elderly without young and strong male laborer (between 18 2 4 households and 55 years old) The disabled The families of the first/second-class disabled 1 4 households according to national standards households The families with people losing the ability to work and burdened with 4 17 families having long-term medical expenses patients Total 9 29

It can be seen clearly that, among 116 households with 454 affected people, 9 households with 29 family members are identified as the poor or vulnerable groups, accounting for 6.39 percent of the survey population.

3.5.6 National Minorities Affected

There is no minority population in the three villages affected by the project.

3.6 Gender Analysis

This section discusses gender issues related to resettlement impact, and it can be subdivided into three aspects: (1) gender gap in education; (2) gender gap in profession and income; (3) gender perspective concerning resettlement.

3.6.1Gender Gap in Education

According to survey data, in the affected area the level of women's education is slightly lower than men. The proportion of illiterate women and women receiving primary education is higher than men; as for education of middle and high school and vocational education, the proportion of women is slightly lower than men; the proportion of women is significantly lower than men in the aspect of university education level.

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Table 3.6-1: Education Background by Males and Females in2007 Educational The Primary Middle High Vocational Higher Level illiterate school School school education education M(%) 8.94 22.98 35.74 21.70 4.26 6.38

F(%) 15.19 32.91 32.91 15.19 0.00 3.80

3.6.2 Gender Gap in Occupation and Income

Among the respondents, men and women of working age are all employed (excluding the disabled). Even if they do not go out to work, they have a stable income working in the fields. The number of females working in farming is 27.59% more than the males; while the number of females working in migrant labors is 21.05% less than the male. Among the 52 female laborers in the respondents’ families, there are 37 working in farming, of which 27 having second jobs; 15 rarely do farm work, including 3 workers, 2 businesswomen and 10 people with fixed income.

Considering gender differences in education and professional background of the potentially affected people, the share of women’s earnings in total family income is to be analyzed (See table 3.6-2). The results show that female earnings make up about 1/3 of the total family income.

Table 3.6-2 Women’s Income in Total Family Income in 2007 Investigated Village category Min.(%) Max.(%) Average(%) Households Agricultural Youfang 15 3.85 50.00 25.30 Population Agricultural Maguantun 22 19.48 50.00 40.50 Population Agricultural Zhangjiadian 4 0 42.00 27.52 Population Agricultural Total 41 3.85 50.00 31.11 Population

3.6.3 Different Gender’s Views towards Resettlement

On the issue of resettlement, we talked to the male and female respondents. Their views toward resettlement are summarized in the table 3.6-3.

The results show that there are five main problems (Item 1，4，7，8，9 in the table 3.6-3) and four problems of no particular concern (Item 2, 3, 5, 6 in the table 3.6-3). Obviously, all respondents’ main concern is reasonable compensation, and the respective proportions of men and women are more than 90%. Besides,

Shanxi Urban & Rural Design Institute 31 Resettlement Plan men are more concerned about the future employment problem, while there are only 20 percent of women. And the proportion difference (67 percent) coincides with the fact that more women are engaged in farming. The families of the respondents all involve land requisition, so they pay more attention on the future life and old-age security and children's education is also their focus. As for the formulation and implementation of the resettlement plan, through their concerns the affected strongly hint that problems should be embodied and corresponding strategy should be proposed and put into practice.

Table 3.6-3: Views toward Resettlement M (N=63) F (N=44) All (N=107) Item Major Minor Major Minor Major Minor （％） （％） （％） （％） （％） （％） 1 Reasonable compensation 97 3 93 5 95 4

2 Timely compensation 33 55 35 43 34 50

3 Public compensation standard 18 70 33 45 24 60

Providing employment 4 45 48 17 50 33 49 opportunities provide conditions for 5 15 80 3 75 10 78 entrepreneurship Farming on the newly cultivated 6 9 67 14 63 11 65 land 7 Future employment 87 8 20 60 59 30

8 Future life（old-age security） 70 27 68 23 69 25

9 Children’s education 67 22 48 33 59 26

10 Others 2 13 0 3 1 9

According to the result shown from the table, there are five major questions (No., 4, 7, 8, 9 on table 3.6-3) and four minor ones (No. 2, 3, 5, 6 from table 3.6-3). Obviously, the most significant point which all of the interviewees care is the impartial compensation, the percentage for both male and female is all above 90%. In addition, male are more care about the employment while there are only 20% of the female care. This percentage difference （67%）is consistent with the fact that more women are engaged in the farm works. The interviewed households are concerned with the land acquisition, so they pay attention to the future life and safeguards, the education of kids is the also the focus of many people.

During the setup of RP and implementation, the problems AP pay attention should be shown and solved by establishing relevant policies. The local women are mainly working on farms, they didn’t have higher education, so they are not capable of getting a job. PMO should provide at least one chance of vocation training for every AP, the content of training should be relevant to the future employment, such as

Shanxi Urban & Rural Design Institute 32 Resettlement Plan the trainings of employment held by local government. If the local women have the chance and they are willing to attend, for example they could attend the trainings on employment in their local place, they could master the method to maintain the long-term and stead-going income. Most of the local men are workers, they could get a job by themselves, the PMO should coordinate with the county or town enterprises and assist them with more employment options.

3.7 Project Impact Analysis

According to the survey, this project only involves permanent land acquisition and its attachment, but causes no residents’ housing loss, loss of enterprises and private industrial and commercial households and loss of special auxiliary facilities.

3.7.1 Analysis of Land Acquisition Impact

Due to construction project, the original production system within the affected areas is destroyed, influencing to a certain degree the local production and living. First, it causes the loss of land resources and reduction of agricultural income. Table 3.7-1 Statistical Statements on Influence of Land Acquisition No. Item Youfang Maguan Tun Zhangjiadian Total 1 Present conditions 1.1 Household number 423 137 87 647 1.2 Population 1431 494 355 2280 1.3 Arable area(Mu) 4745 3575 2245 10565 1.4 Family’s average arable area(Mu) 11.22 26.09 25.80 16.33 1.5 Per-capita arable area(Mu) 3.32 7.24 6.32 4.63 2 Project Influence 2.1 Arable area occupied(Mu) 136 325 33 494 2.2 Number of affected households 38 68 10 116 2.3 Affected population 150 270 34 454 3 Impact Ratio 3.1 At Village Level 3.1.1 Farmland reduction per HH (mu) 0.32 2.37 0.38 0.76 3.1.2 Farmland reduction per Capita 0.10 0.66 0.09 0.22 3.1.3 Ratio of reduction (%) 2.86 9.09 1.47 4.67 3.2 at the affected people level 3.2.1 Farmland reduction per HH (mu) 3.57 4.78 3.30 4.26 3.2.2 Farmland reduction per Capita arable land (Mu) 0.90 1.20 0.97 1.09 3.2.3 Ratio of reduced arable land (%) 30.2 16.2 14.2 18.6

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3.7.2 Loss of Cultivable Land

According to the surveys, the status of cultivable land is shown on Table 3.7-2。

Table 3.7-2: Land Loss Impact Among Affected Households Scope HH HH HH HH HH HH HH No. Per HH Land ﹤ 10%～ 30%～ 50%～ 70%～ 90%～ Total 100% Holding 10% 30% 50% 70% 90% 100% 1 Youfang 1.1 ﹤3mu 1.2 ﹥3mu 8 17 7 5 1 38 2 Maguan 2.1 ﹤3mu 2.2 ﹥3mu 20 42 4 2 68 3 Zhangjiadian 3.1 ﹤3mu 3.2 ﹥3mu 6 4 0 0 10 Total 34 63 11 7 1 116 % of Total 29.3% 54.3% 9.5% 6.0% 0.9% 0.0% 0.0% 100.0%

Among 116 affected households, 34 or 29.3% would lose less than 10% of their land holdings; 63 or 54.3% would lose 10% to 30% of their current land holdings; 11 or 9.5% of them would 30% to 50% of their land holdings; 7 or 6% of households would lose 50% to 70% of their land holdings; and 1 or 0.9% of households would lose 70% to 90% of their land holdings.

3.7.3 Compensation Option

Since most of them would still have certain amount of farmland remaining and since the yield of the farmland is relatively poor, plus no collective reserved farmland, all the affected households would prefer cash compensation and hope to use compensation fund to engage non-land based income generation activities in order to improve their current conditions. See Table3.7-3 for detail.

Through social economic survey, the social economic conditions of the affected villages are very similar with close distance. Most of the income came from migrant labors with income from planting is quite limited, which was 12% for Youfang Village, 32% for Maguantun Village, and 23% for Zhangjiadian Village.

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Table 3.7-3: Analysis of Compensation Option (Unit: HH) Loss of Response Cash Cultivable Replacement Others subtotal compensation Land ﹤10% 34 34 10%～30% 63 63 30%～50% 11 11 There is no 50%～70% 7 7 replacement ﹥70% 1 1 100% 0 0 Total 116 116

The local natural conditions are unfavorable for agricultural production, belonging to the regions of returning farmland to forest which is advocated by the State. The cold weather makes Youyu County harvest only once a year, and less rainfall decreases the crops yield. The production conditions are quite harsh with the characteristics of high input, low output and depending on weather for harvest, which is main factor contributing the current poverty condition in rural Youyu. Therefore, most peasants hope through other means they can change the current conditions.

According to the survey, because Youfang Village belongs to village in the city and Maguan Tun and Zhangjiadian Village are located in the inner or margin of county’s planning and development areas, it is very common that rural labor force establishes enterprises, do business and go out to work. 70 percent of male labor force about the age of under 50 goes out to work, gets part-time job in the surrounding enterprises, engages in service trades or does farm work, while the land is mainly farmed by the female, or given to others to farm for nothing, and some even become wastelands. The female labor force can be divided into three categories: One is to go out to work, mainly the young unmarried; one is women about the age between 30 and 40, mainly doing farm work and sometimes getting part-time job in the surrounding enterprises and engaging in service trades; one is labor force about the age of over 50, mainly doing household chores and not taking part in labor activities. Therefore, the land acquisition of the project has little influence on family livelihood whose land is requisitioned and the male labor force of the family.

For the land users, the positive influence is that with cash compensation, it provides a rare opportunity for them to use such funds for small business or other investment, in order to alter the poverty situation.

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4 Participation, Consultation and Appeal

4.1 Identification of Stakeholder

According to policy of ADB and Chinese law, public participation and consultation is an important procedure. First of all, the stakeholders should be identified. According to the plan’s characteristics, the stakeholders can be divided on the basis of priorities.

Those who suffer directly or simply benefit a lot from the project are the main stakeholders, including: (1) groups suffering directly from the loss of land and properties; (2) social public institutions affected by land acquisition and resettlement;(3) villages affected by land acquisition and resettlement; (4) all institutions and companies directly involved in project construction and operation, such as construction contractors.

The secondary stakeholders include indirect beneficiaries, such as project contractor, governmental organizations participating in project activities and those who are interested in the project and participate in project-related activities.

The purpose of identifying the interested groups of the project is to ensure the extensive participation and consultation of the AP, in particular, those who suffer and the smooth implementation of planned project, in order not to influence the affected people’s standard of living. The following chapter introduces consultation activities which have been made and need to be done in the future to achieve this goal.

4.2 Consultation of Project Preparation Process

In the stage of making resettlement policies and preparing action plan, the project attaches great importance to public participation and consultation of the community, solicits a wide range of opinions from various social groups, government departments, communities and AP and encourages the parties to participate the resettlement work. During the stage of implementation, the resettlement institutions would further encourage the masses to participate in the work of resettlement, production restoration and reconstruction.

4.2.1 Public Consultation During the preparation phase and the process of compiling the Scheme for the Resettlement, to complete influence survey work of project land acquisition and resettlement, relevant departments of local governments and AP have participated in the following work in chronological order:

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(1) Under the direction of ADB experts and urban and rural Planning and Design Institute in Shanxi Province, the Youyu CPMO held a special meeting on how to carry out survey on March 26, 2008. The CPMO prepared the detailed scheme to carry out the work and organized an coordination meeting participated by the CDRC and Youyu DRC, the principal leaders of the Xincheng Town and three villages involved in the project.

(2)On March 28, 2008, a meeting, concerning survey of land acquisition and resettlement impact, was held. The deputy Mayor Mr. Li, presiding over the meeting, gave a briefing on the progress of small town construction projects financed by ADB and clarified the purpose and tasks; then director of Youyu DRC introduced overview of the project and listed specific requirements of this survey and tasks to be done by working together in the next few months. The meeting emphasized that Xincheng Town and 3 affected villages should appoint 1-2 staff each, who were responsible for this work and could finish it in conformity with the specify quality, quantity and time, and inform the staff of Youyu DRC of the name and contacts.

(3)From March 29 to April 10, 2008, work was carried out according to the deployment. On April 12, the details involving land acquisition, demolition and ground fixtures were to be surveyed in accordance with requirements. On April 13, the basic situation of the survey was to be submitted to staff of Shanxi Urban and Rural Planning and Design Institute.

(4) From April 15 to May 6, 2008, the principal leaders of the CPMO and units of the resettlement plan were to go to the affected township (town) and villages to hold a series of meetings with the township (town) and village cadres and the representative of the affected villagers. They extensive publicized respectively the necessity of small town construction project and resettlement policies and solicited opinions about land acquisition compensation and specific measures about the resettlement. The staff of Resettlement Action Plan conducted surveys about public participation and opinions on resettlement through questionnaire survey. The survey, recalling 107 valid questionnaires, covered a full range of the affected villages due to project land acquisition and occupation, so the surveyed had broad representation and the survey results had higher credibility. They reflect the wishes of the local APs, make the affected population have a certain understanding of the project and executive institutions and resettlement design units have a clearer understanding of the local condition and concerns and worries of the affected. Table 4-2-1 lists the key issues discussed in the consultation meetings and agreement achieved.

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Table 4.2-1: Issues Discussed and Agreement Achieved

Topic Consultation Results and Implementation Plan Status

The compensation standard is 21000yuan/mu according to Compensation the standard made by Youyu county Land Resource Bureau Standard And all of them will be paid to APs. Compensation All cash compensation. Method CPMO, Town PMO, village Compensation Compensating will be paid to affected villagers, the flowing committee, and Allocation route is CPMO- Town PMO- Village Committee- AP AP all achieve Training time is set according to the villager’s willingness, agreement. The Training Plan the content of training includes vegetable room skills, results of household raising, tourism service, etc. agreement are all Affected women all get the employment training chance, Assistance to reflected in the and have the priority to get the job during implementation Women RP. period. Vulnerable The assistance plan has to be made according to the real Group needs of every vulnerable HH. Restoration Make the agreement with township enterprises and Plan markets, provide the priority employment for AP.

(The Meeting) (The Home Interview)

Through the sample survey of the affected peasants, their main concerns are as follows: (1) reasonable compensation; (2) future life (old-age security); (3) future employment, (4) their children's education; (5) timely compensation.

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Table 4.2-2 Affected People’s Knowledge of the Project No. Questions Answers Ratio％ Did you hear about “Shanxi Small Town Yes 39 1 Development Demonstration Sector Knowing a little 20 Projects？（Number=41） 41 Less than half a year 63 Is you did, when did you hear of it? One year ago 38 2 （Number=16） Two years ago 0 Three years ago 0 Four years ago 0 Newspaper 0 Television 31 Radio 0 Through what channels did you hear of 3 the project? (Number=16) Village Meeting 69 Neighbors, relatives 0 and friends Social investigators 0 Less than half a year 56 When did you hear that your own One year ago 44 4 house/land would be requisitioned? Two years ago 0 （Number=13） Three years ago 0 Four years ago 0 Social investigators 0 Township and village Through what channels did you hear that 81 your own house/land would be cadres 5 township and village requisitioned? 19 （Number=13） Meeting Neighbors, relatives 0 and friends Yes 100 Do you agree with the project’s No 0 6 construction？（Number =41） Unconcerned 0 0 Yes 88 Do you think this project can provide more 7 No 2 job opportunities?（Number =41） 10 Do you think this project can improve the Yes 63 8 local water, health and air quality? No 17 （Number =41） 20 Yes 68 Do you think this project can improve the 9 No 22 urban environment?（Number =41） 10 Do you think this project, as a whole, can Yes 88 10 promote local economic growth? No 2 （Number =41） 10 Do you think this project can promote Yes 71 11 development of the local tourism industry? No 2 （Number =41） 27

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No. Questions Answers Ratio％ Do you think this project can stimulate the Yes 46 12 increase of the local housing prices? No 24 （Number =41） 29 Do you think this project is to be favorable Yes 63 13 to improve the investment environment? No 5 （Number =41） 32 Yes 88 Do you think this project can benefit the 14 No 2 poor population? （Number =41） 10 Yes 46 Do you think this project can benefit the 15 No 12 women?（Number =41） 41 Getting better and 54 In your opinion, which kind of influence will better 16 the project have on your family life? Going downhill 5 （Number =41） No change 12 29 Yes 73 In general, do you think you will benefit 17 No 5 from the project?（Number =41） 22 Do you have a thorough understanding of Yes 41 18 impact of the project on your family? No 12 （Number =41） 46 Yes 10 Did you know the “Law of Land 19 Knowing a little 22 Management” in 1998? （Number =41） 68 Did you know No. 28 documents: " Yes 5 Decision on Deepening Reforms for Knowing a little 22 20 Tightening Land Management” issued by the State Council on October, 2004? 73 （Number =41） Yes 46 Do you think your losses will be fairly 21 No 12 compensated?（Number =41） 41 In addition to compensation, do you think Yes 51 you can receive necessary support from 22 No 7 the relevant departments in the process of relocation?（Number =41） 41

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Table 4.2-3: Record of Consultation Attend Feedback\discussion Institutions Date Participants Purpose ance of the main problems --The PO makes Youyu March Some staff of the To discuss to carry specific plan 6 CPMO 26,2008 Project Office out the survey --To hold coordination meeting Leaders of county government, Youyu --To introduce basic To hold a DRC, the principal situation of the project March deployment meeting Youyu leaders of the and deploy the tasks of 28, 14 concerning survey of CPMO Youyu CPMO, and this survey 2008 land requisition and the chief cadres of --To clarify the scope resettlement impact Xincheng Town of the survey and villages --To specify the affected three villages’ The project To verify the scope details about land March leaders，leaders of of land requisition requisition, demolition Youyu 29-April affected 25 and the number of and ground fixtures CPMO 13, townships(towns) the affected fixtures --To submit the the 2008 and villages basic situation of the survey to compiling staff of Design Institute --To know the basic situation of the affected The Youyu CPMO villages and hold leaders，compiling forums to solicit Youyu staff of Design opinions about April To set the tone for CPMO, Institute，leaders of compensation and 16-17, 66 the resettlement Design townships(towns) resettlement 2008 plan Institute and villages and --Staff of the Project villager Management Office representatives introduce the importance of resettlement plan --To have a The Youyu CPMO knowledge of the basic PPTA leaders，compiling situation of the affected expert， staff of Design women April Women's Youyu Institute，leaders of --To hold forums to 18-20, 31 resettlement plan CPMO, townships(towns) seek the opinions of 2008 Design and villages and women about the Institute women compensation and representatives resettlement

To have a knowledge The Youyu CPMO of the basic situation of leaders，compiling PPTA the affected staff of Design expert， Assistance plan for disadvantaged groups April Institute，leaders of Youyu the disadvantaged --To hold forums to 21-22, townships(towns) 55 CPMO, groups seek the opinions of 2008 and villages， Design the disadvantaged representatives of Institute group about the villagers and the compensation and vulnerable groups resettlement PPTA April The Youyu CPMO 43 Usage of the --How to use

Shanxi Urban & Rural Design Institute 41 Resettlement Plan expert， 23-24, leaders，compiling resettlement fund compensation fund Youyu 2008 units，leaders of --How to allocate the CPMO, townships(towns) compensation fund Design and villages and Institute villager representatives The Youyu CPMO PPTA --What kind of training leaders，compiling expert， do the villagers need? April units，leaders of Youyu --The villagers opinions 25-26, townships(towns) 43 Training plan CPMO, about the arrangement 2008 and villages and Design of the employment villager Institute training representatives -- To hold forums to PPTA PPTA expert，The discuss all aspects of expert， To confirm the Youyu CPMO the Resettlement Youyu May 30, Resettlement leaders，compiling 5 Information Handbook CPMO, 2008 Information staff of Design -- To confirm the Design Handbook Institute Resettlement Institute Information Handbook

These meetings and the results of the survey had a significant impact on policies of the RP, in particular, on the calculation of compensation prices and formation of training plans and income restoration strategy based on cash compensation. The RP was developed according to the villagers’ views: land acquisition compensation will be paid to the affected households; the employment training subjects and time were made in accordance with the villagers’ wishes; the affected villagers would have priority for the employment during the project and New District construction; more help will be given to women in terms of training and employment; the dividing standards of the disadvantaged groups and specific assistance policy, and so on. And all these will be definitely embodied in the RP.

4.2.2Consultation Plan and Public Participation in Project Implementation Although a certain degree of public consultation has already been conducted, the project implementing institutions and local governments fully admit that, after technical support in project preparation and in the process of resettlement and land acquisition, more consultation meeting should be held. The main activities to be undertaken include:

(1) A variety of resettlement information, reviewed by the ADB, should be collated and summarized, and then put up on the notice board or announced by radio in the affected areas. Resettlement Information Booklet (See Appendix 1), printed in Chinese, should be published and handed out. And the RIB would briefly introduce policies, identify all loss of property, rights, compensation standards and prices, complaints procedure and resettlement / land acquisition plans;

（ 2 ） The formal meetings of the county government, the township/town government and villages, approving the related compensation payment and plan

Shanxi Urban & Rural Design Institute 42 Resettlement Plan for its use, should be mainly arranged before the implementation of land acquisition compensation and resettlement. They should continue extensively and thoroughly to explain to the masses the related policies, laws and regulations, compensation standards etc., so that the masses can know earlier and thereby arrange earlier;

（3）A detailed measurement survey in the field would be done to ascertain final figures of land acquisition and property from the affected households and villages.

In the course of the above activities, it is very necessary for township-level or village-level women’s association to participate and provide explanations or help to female affected people. The activities and schedule of advisory plan can be seen in the following table:

The AP will be encouraged to participate in the whole process of implementation of the project resettlement planning report.

（1）Participating in land acquisition Because the compensation standards for land acquisition will be directly related to the interests of the affected households, the resettlement institutions will negotiate with the affected households for compensation standards of land acquisition and sign agreements before the land is acquired. The negotiation results must be put up on the notice-board before signing the agreements for public supervision. All land- acquisition households will be compensated according to contracts.

（2）Participating in project construction The project construction will have, more or less, an impact on the local people. To ensure the staff affected by the project can benefit from the project construction, the masses will be encouraged to take part in the project construction and facilities will be provided in the aspect of use of materials and services.

（3）Women’s participation From the beginning of the project, EA of the project and the local government have paid a special attention to women’s role, cared about the needs of women and women-headed families and given full play to the role of women in the process of implementing the resettlement.

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Table 4.2-3 Consultation Plan During Implementation Purpose of activities Tasks Date Executive Institutions Particapants Notes 1.Publicizing the Resettlement September, Implementation institutions, All affected To hand out the Information 2008 resettlement scheme Information resettlement institution of households Handbook to all affected villages Booklet county/township(town) 2.Publicizing To hand out October, Implementation institutions, All the affected To hand out the final draft of the the resettlement plan the Chinese 2008 government of people resettlement plan to all affected version of the RP county/township(town) villages 3.Publicizing the To talk to the December, County/township(town)-level All the affected (i) Detailed contents of all property 2008 updated resettlement affected executive institutions, people and land ； scheme and make people face to Implementation institutions, (ii)Name list of the affected detailed investigations face project office of resettlement people； and township(town) leaders (iii)To prepare information which is the basis for households’ compensation contract 4.The final draft of Village-level March, County/township(town)-level All the affected (i)To finalize compensation 2009 ； village-level meeting project office of resettlement people payment plan of villages (ii) Discuss and decide how to resettlement scheme and village leaders invest and use the and its implementation compensation funds which is not allocated to the affected individuals.

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In the affected areas, the rights and interests of women are identical to men and they play a very important role in the economic development activities and housework. In particular, in rural areas, most women stay at home while more men are looking for jobs in cities. In addition to family responsibilities, women have played an important role in the agricultural production process, whether it is farming or non-farm work. So in the affected areas, women are concerned about the project, even show greater enthusiasm than men. During the general survey of the project, head of the women’s federation of all affected villages were all invited to join the investigation workgroups, to ensure publicity and better communication with the affected women during the investigation; in the small forums of the APs in every village, women’s views were heard. In addition to positively supporting the project, they paid more attention to accuracy of asset inventory, rationality of compensation standards and whether the compensation funds can be put in the right place timely, and so on.

During resettlement planning stage, staff of resettlement DI actively invite representatives of affected women to consult together and fully listen to their opinions, requirements and existing problems in the aspect of the resettlement of production , relocation and house-building. And the negotiating work can lift women’s worries that their sources of livelihood and traditional production patterns would be affected and have positive significance in the aspect of protecting the women’s equal rights and interests in the project.

At the same time, all levels of resettlement implementation institutions will be staffed at least one women cadre and women are also encouraged to take part in the implementation of the resettlement planning. Resettlement implementation institutions and local government will further pay attention to women's demolition activities, in particular, their livelihood restoration. Women will be given priorities in the project construction employment and provided with more employment opportunities.

4.3 Public Participation

4.3.1 Objective of Participation

The participation and consultation of the affected people is the beginning of resettlement project and the basic measures to resettle and resume. Through the participation and consultation of the affected person and their impacts on not only the project’s design, planning, decision and implementation but also the control, decision and resource of compensation, resettlement and resume the construction, the affected people can fully understand and consult on all the plans of the resettlement and compensation. To choose to participate will affect their construction and life, and can help them to set up the appropriate option, so as to make them resettle and resume the construction, and thereby make the project implemented smoothly and reduce the negative impact.

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4.3.2 Participating Object

The relevant people are the project stakeholders including primary stakeholders and secondary stakeholders. The primary participants include the affected people, stakeholders of project, the dweller in resettlement area and implementation institutions, while the secondary stakeholders include the individuals or groups related to the project, such as the country, local government, decision-maker, the holding group, non-government organization and social officer. The participant of this project is the affected people who are influenced by the land acquisition.

4.3.3 Participating Principle

1. Sharing Information Sharing the information is the most important principle during the discussion. During the preparation and identification period, the manager of the project should tell beneficiaries all the things about the project (including planning, design, all the options and various potential influence of the project). During the preparation, planning and implementing period, the information about the land acquisition which can be spread includes: the project and its impact, the compensation policy and standards, payment plan, resettlement plan, status of reallocation place, the implementation institution, time table, the complaint procedure, and so on.

2. Focusing on the Problem Related to the Affected People The problems concerned by the affected people will be summarized during the preparation of resettlement planning and considered in the settlement plan.

3. Affected People’s Participation Information of the affected person shall be collected during the preparation and implementation of the resettlement plan, and they shall be invited to make the arrangement together.

For the RP which could be chosen, decision should be made with the affected people. These choices include the different forms of compensation and help, the resettling system of individual family, the resettling system of being a part of community or family

Participating Stage. All the stakeholders, particularly the affected person and its representatives should take part in whole project.

4. Institutional Arrangement After the identification of the project, it should be made sure all the stakeholders, specially the affected people and the non-governmental organization representatives can take part in the project group, committee and designing procedures, the proper institution can make the affected person speak out their opinion to the project management units during planning and implementation of the

46 Resettlement Plan settlement, and make sure the rights and interests of people without land, needy people and women.

4.3.4 Participation Methods

1. Direct Participation Villagers’ discussion meeting: Through talking with the villager representatives or cadre and collecting the villagers’ focused questions and opinions. And we shall collect the suggestions from local government and resettlement departments.

Promotion of Project: Resettlement Information Booklet shall be designed to introduce the project’s impact, compensation standard, resettlement policy, the affected person’s rights and obligation, the project institution, the arrangement and so on, with an aim to make all the people know the detailed resettlement plan.

2. Indirect Participation People reflect their opinion and suggestion to the village committee， resettlement departments and monitoring department at all levels. The resettlement departments shall reply and treat all the suggestions according to the treatment procedure.

4.3.5 Function of Independent Monitoring Institution

The independent institution is the organization which does not include the project institution and the institution of the affected people, such as non-governmental organization, and its function includes:

Conveying the complaint opinions and Coming up with the focused questions concerned by the APs, such as compensation way, resettlement of laborer, arrangement of the project’s implementing schedule.

Consulting the affected person periodically and holding talks and forum. Putting forward suggestions and opinions for appealing.

4.3.6 Participatory Survey

The project group conducts the resettlement and economic surveys. At the same time, it introduces the project to the masses in details, hands out Household Survey Questionnaires, and knows the attitude and suggestion of the affected person. During the survey, the project group holds the official meeting and affected person meeting in every county, town and village, carries out the home investigation, and knows the attitudes and suggestions from the government at all levels and the masses toward the project, land compensation and resettlement.

4.3.7 Participation during Implementation

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To make sure the project and the resettlement plan can be carried out smoothly and the interest of the affected peasants can be protected, a lot of participatory meeting and consultation will be held among the affected households from villages affected by the project during the resettlement period. Especially during the land acquisition and resettlement period, the project group will talk with the villagers about the compensation price, accounting system, the impact grade, choice of the new housing places, the economy restoration measures, the compensation’s usage and other problems involved in the project which are connected with the interests of the affected villages and villagers.

1. Establishment and Implementation of the polices The compensation of the land acquisition and housing demolition will affect the farmer’s vital interest. Before implementation of the resettlement plan, all the project offices should do research together on compensation standards. Every project office should register information of the affected villages and peasants, and the compensation standards and results will be publicized among the affected through handbook or poster to receive public supervision.

2. Confirmation of Resettlement Impact During the period of investigating the resettlement impact, under the public supervision, the project settlement office will know social economic situation and impact degree of the affected villages and peasants. The resettlement report will be updated according to the real situation and specific settlement plan and economic recovery measures will readjusted according to the real situation, too.

3. Resettlement Measure According to the research results and on the basis of the peasants’ wishes, people whose land is demolished should be reallocated, and the local government should provide concrete measures.

4. Village Group Restoration Measure According to the investigation and compensation standard, the villagers will decide the specific economy recovery measures.

4.4 Disclose of Policy and Plan

4.4.1 Publicizing the Impact Survey Results

After the careful land- measurement survey of the project within the affected areas, the list of all the impact type will be publicized to the affected people and communities.

4.4.2 Explaining Compensation policy

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According to the land management law, before acquiring the land, the related compensation plan should be told to the affected villages, including compensation standards for the land acquisition and resettlement.

4.4.3 Preparing and Handing out Resettlement Imformation Booklet

The PRO has already finished a detailed resettlement information booklet to make sure the government and the affected people in the affected areas can understand the details of the resettlement plan and compensation provisions. The resettlement booklet includes the major content of RP, compensation standards, policy of the resettlement policy, rights of the affected people and grievance handling. After this handbook is approved, it will be sent to each family in project area. According to the project schedule, this work should be done about 6 months before the implementation of the resettlement. The related announcement about land acquisition and resettlement will be published in the affected villages and towns through village and group bulletin and, meanwhile, the meeting held by the each villager group will announce it orally, to publicize resettlement policy, compensation standards and grievance methods. The document of resettlement plan can also be kept for reference in county or town’s office and kept in local library for the sake of affected people’s convenience.

4.4.4 Interview

Public interview will be held to explain the related policies, law, regulation and compensation standards to make sure that the affected people know the related policies before starting the project.

4.4.5 Construction Units’ Information Feedback

1.Keeping on Strengthening Discussion and Project Promotion As to the investigation results, the PRO has already taken the promotion measures. Thoroughly taking advantage of public negotiation and community broadcasting, we shall publicize the status of project construction plan and national regulations and policies on land acquisition. Meanwhile the discussion shall be strengthened with departments of environment protection and engineering designs to ensure the plan of environment protection and project construction project will be designed well.

2. confirming the compensation scale of land acquisition and housing, agricultural products and property losses. Before writing the resettlement action plan, on the compensation scale, the PRO has negotiated with offices of land acquisition and resettlement at all levels and reaches an agreement after collecting opinions from the affected villages and enterprises and institutions. But the final result shall be informed in the booklet or through other means after the ADB’s examination and province government’s approval.

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3. Survey on Affected People The investigation of house, land attachment and property shall reflect the affected peoples’ loss. Because the affected people shall register in investigation table, and the table should be checked, their affection status has been published.

4.5 Grievance and Appeal

The main objective of the resettlement is to make sure that affected peoples’ construction and life could be resumed and improved. So the PRO shall fully negotiate with the affected people when making all kinds of compensation price standards and construction restoration measures in order to make sure that people will not complain during the resettlement period. However, the differences among the losses of the affected people are so great that there inevitably exists grievance during the implementation of resettlement. So the resettlement department should give them opportunities and rights to appeal, and build a set of handling procedure which is highly transparent and easy to carry out in order to handle the peoples’ grievance in an objective, impartial and efficient way and fasten the project’s rate.

4.5.1 Content

The content of grievance includes all sides of the resettlement project, such as housing compensation, property, land distribution and rebuilding location, paying compensation of charges and removal costs during the house rebuilding period.

4.5.2 Procedure

Although the affected people are encouraged to participate during preparation and implementation of The Resettlement Action plan, all kinds of the problems will appear more or less in practice. To ensure the problems can be resolved timely while arising so that the project construction, land acquisition and resettlement can go smoothly, this project also establishes a transparent and efficient appeal methods for the rural AP as well as the existing complaint channel of local governments at all levels (including the provincial, city and county complaints offices, law enforcement departments and discipline inspection departments).

Stage 1: The affected people give oral or written appeal to village committee if they are unsatisfied with the scheme and implementation of the project. If it is the verbal appeal, the village committee should handle it and write down the records. It should be answered by the village committee in one week.

Stage 2: If the affected people are not pleased with result in stage 1, they could put forward the appeal to the Town PRO after receiving the reply, and the Town PRO should deal with it in one week.

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Stage3: If they are not satisfied with the resolve in stage 2, they could appeal to the county PRO, and the county PRO should deal with it in one week.

Stage4: If they are not satisfied with the resolve in stage 3, they could appeal to the county resettlement leading groups or Land and Resources Bureau for the arbitration after receiving the reply from county PRO. And the arbitration body should make decision within ten days

Stage5: If they are still not satisfied with the arbitration decision of the arbitration body, they could appeal to the civil court according to civil procedure law after receiving the decision.

The AP can lodge a complaint concerning any aspect of the resettlement, including compensation standards.

The settlers will be informed of all the above complaint channels through meetings and other means, to make them have a full understanding of their rights to appeal. Meanwhile, the channels will be reported through mass media and the opinions and recommendations from all parties about resettlement will be organized into informational provisions and handled timely by the resettlement institutions at all levels. The address and contact of the all kinds of complaint institutions can be seen in the table 4.5.2

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Table4.5.2: Address Book for the Resettlement Organization No. Name Person in charge Working Place Telephone County’s The fourth floor in 1 Resettlement Li Feng the County 13903496008 Leading Group Government building The third floor in the PRO at county 2 Huang Qinghe County Government 13934952777 level building Xingchen Town Wang Yu 13934429888 PRO at town Government 3 level XingchenTown Wang Jinrui 13903496796 Government Youfang Village Youfang Village 4 Cui Tao 13934952476 Committee Committee building Maguantun Maguantun Village 5 Village Zhou Guixi 13152713393 Committee Office Committee Zhangjiadian Zhangjiadian 6 Village Lu Yue Village Committee 13834190568 Committee Office

The institutions accepting AP’s complaint do not charge any fees, and the complaint fees will be paid by the project office in the transparent expenditure

4.5.3 Principle of Handling Grievance

All the resettlement office at all levels must investigate in the filed into the problems put forwards by the masses, fully solicit the opinions of the masses and then negotiate with then patiently. According to the principles and standards of the national regulations and resettlement action plan, handling suggestions will be proposed objectively and fairly. As for the problems which could not be solved, we should timely report the situation to the higher-level departments and help them with the investigation.

4.5.4 Content of Rely to Grievance

1. Description of complainants’ Dissatisfaction 2. Investigating Fact 3. Relevant state regulations & Principles and Standards of the RP 4. Handling suggestions and concrete basis 5. The complainants have rights to appeal to higher-level resettlement department or civil court, and the legal cost will be paid by the project company.

4.5.5 Forms of Reply to Grievance

1. As for the complaint about a few specific problems, written material shall be given to the complainants directly. 2. As for the complaint about frequent problems, meeting of villagers shall be held and documents shall be handed out in order to inform the village or villager groups.

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3. No matter which way is adopted to reply to it, the replied document should be sent to their resettlement department.

4.5.6 Grievance Report

During the period of implementation of the resettlement action plan, the resettlement units should register and manage the appealing document and result data and report to the PRO in written form monthly.

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5 Legal Framework and Resettlement Policy

The preparation of Resettlement Plan and implementation of resettlement in the future will be all under the relative rules and regulations of PRC and Shanxi province, and will be under relative resettlement policies of ADB strictly. The land acquisition and resettlement will be implemented in accordance with compensation standards and resettlement plans strictly. During the implementation of the project, if there is any significant change of policies, project owner has to discuss with ADB in order to achieve agreement finally.

5.1 Policy Basis

1. Land Administration Law of People’s Republic of China (It is established in June, 1986, put in force on January1st, 1987 and amended three times, separately in 1988, 1998 and 2004.) 2. Regulations for Implementation of the Land Administration Law of People’s Republic of China (It is the No. 256 order of State Council on December 27th, 1998, and is put in force from January, 1st, 1999) 3. Interim Regulations of the People’s Republic of China Concerning the Assignment and Transfer of the Right to the Use of the State-owned Land in Urban Areas (It is the No. 55 order of State Council enacted on May 19th, 1990 and is put in force at the same time.) 4. Management Rules of Land Transfer during Reform among State-owned Enterprises (It is the No.8 order of National Land Management Bureau on February 17th, 1998 and is put in force on March 1st, 1998) 5. Regulations for Confirming Owning and Using Right of Land (It is the No. 26 document of National Land Management Bureau, and enacted on March 11th, 1995) 6. Management Methods of Land Charging (It is the No. 117 document, enacted by Ministry of Finance and Ministry of Land and Resource on August 4th, 1999, and is put in force on January,1st , 1999) 7. Shanxi Province’s Methods on Implementing Land Administration Law of People’s Republic of China (It is approved during the 12th meeting of Standing Committee of the 9th National People’s Congress on September 26th, 1999.) 8. Interim Regulations on Charging for Compensation of Land and Forest Acquisition in Shanxi (It is the No.32 document enacted by Shanxi Price Control Bureau, Forestry Bureau, and Finance Bureau, and is put in force on July 7th, 1994) 9. Shanxi Province’s Implement of Interim Regulations for Land Use Taxation (It is No.4 document enacted by Shanxi Provincial Government, and is put in force on November 16th, 1988) 10. Shanxi Implement Methods for Cultivated Land Acquisition Taxation (It is promulgated by Shanxi Provincial Government on August 5th, 1987)

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11. Notice on Examining Land Management and Exploitation Charge in Shanxi Province (It is No. 3 document enacted by Shanxi Land Management Bureau and Price Control Bureau and is put in force on March 19th, 1988) 12. Regulations for Agricultural Land Protection (It is promulgated by Shanxi Standing Committee on November, 30th, 1999) 13. Notice on the Opinions of Compensation of Building Land in Shanxi (It is the No. 193 document of Shanxi Land Management Bureau, 2007) 14. Shanxi Province’s Methods on the Compensation Distribution of Collectively-owned Peasant’s Land (October 17th, 2005) 15. Policy for Involuntary Resettlement (It is established by ADB in November, 1995) and Handbook on Resettlement: A Guide to Good Practice (1998)

5.2 Relevant Provisions of Law and Regulation

5.2.1 Relevant provisions in Land Administration Law of PRC

Article 48: The state may acquire land owned by collectives for public interests. The State introduces the system of compensated use of land owned by t he State except that the land has been allocated for use by the State according to law.

Article 10: The collectively-owned land belongs to villagers legally, and it is managed and run by rural collective economic organization or villagers Committee; it belongs to more than two village collective economic organizations respectively, and it is managed and run by rural collective economic organizations or small groups; it already belongs to rural villagers, and it is managed and run by rural collective economic organizations.

Article 14: Land collectively owned by peasants shall be contracted out to members of the collective economic organizations for use in crop farming, forestry, animal husbandry and fisheries production under a term of 30 ye ars. The contractees should sign a contract with the corresponding contractor to define each other’s rights and obligations. Peasants who have contracted land for operation are obliged to use the land rationally according to the purposes agreed upon in the contracts. The right of operation of land contracted by the peasants shall be protected by law. Within the validity term of a contract, the adjustment of land contracted by individual contractors should get the consent from over two-thirds majority vote of the villager’ congress or over two-thirds of villager’ representatives and then be submitted to land administrative departments of the township(town)people’s government and county level people’s government for approval.

Article 31: The State protects the cultivated land and strictly controls the conversion of cultivated land into non-cultivated land. The state fosters the system of compensation to cultivated land to be acquired. In the cases of acquiring cultivated

55 Resettlement Plan land for non-agricultural construction, the units acquiring cultivated land should be responsible for reclaiming the same amount of land in the same quality as that acquired according to the principle of “reclaiming the same amount of land acquired”. Whereas units which acquire the cultivated land are not available with the conditions of reclamation of land or the land reclaimed is not up to the requirements, the units concerned should pay land reclamation fees prescribed by provinces, autonomous regions and municipalities for reclaiming land for cultivation the land reclaimed.

Article 46: For acquisition of land by the State the local people's governments at and above the county level shall make an announcement and organize the implementation after the approval according to the legal procedures.

Owners or users of the land requisitioned should, within the time limit specified in the announcement, go through the compensation registration for requisitioned land with the land administrative departments of the local people's governments on the strength of the land certificate.

Article 47: In requisitioning land, compensation should be made according to the original purposes of the land acquired.

Compensation fees for land requisitioned include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land requisitioned by the per capital land occupied of the unit whose land is requisitioned. The resettlement subsidy for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. But the maximum resettlement fee per hectare of land requisitioned shall not exceed 15 times of the AAOV of the three years prior to the requisition.

The standards for land compensation and resettlement subsidy for land acquired shall be determined by various provinces, autonomous regions and municipalities in reference to the land compensation fees and resettlement fees for cultivated land acquired.

The standards for compensating for ground attachments and green crops on the land requisitioned shall be determined by various provinces, autonomous regions and municipalities.

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In requisitioning vegetable fields in suburban areas, the units using the land should pay new vegetable field development and construction funds.

Whereas the land compensation fees and resettlement fees paid according to the provisions of the second paragraph of this article 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 AAOV of the three years prior to the requisition.

In special circumstances, the State Council may raise the standards for land compensation and resettlement fees for land requisitioned according to the social and economic development level.

Article 48: After the plan for land compensation and resettlement fees is finalized, related local people's governments shall make an announcement and hear the opinions of the rural collective economic organizations and peasants whose land has been requisitioned.

Article 49: Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation fees for land requisitioned and accept their supervision. It is forbidden to embezzle or divert the land compensation fees and other related expenses or in starting up enterprises.

Article 50: Local people's governments at all levels shall support rural collective economic organizations and peasants in their efforts toward development and operation.

Article 54: A paid leasing should go through in use of land owned by the State by a construction unit. But the following land may be obtained through government allocation with the approval of the people's governments at and above the county’s government. (1) lands for the national organizations and military sites; (2) lands for urban infrastructure and public welfare undertakings ; (3) lands for key energy, transportation, water conservancy and other infrastructure supported by the State; (4) other lands prescribed by laws and administrative regulations；

5.2.2 Interim Regulations of the People’s Republic of China Concerning the Cultivated Land Use Taxation

Article 2: The arable land referred in this article means those which can be used to plant crops. The land used to plant crops in the past three years is also regarded as arable land.

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Article 3: The units and individuals who occupied the cultivated land for building houses or other non-agricultural construction must pay farmland tax (called the taxpayers) and they should pay tax t according to this provision.

Article 4: Arable land tax paid by the taxpayers are asked based on the actually occupied area of arable land and are charged at one time in accordance with the provisions.

Article 5: The amount of arable land occupancy tax is provided as follows: (1)) For the region in which the per capita arable land is not over one mu (regard the county-level administrative region as a unit ,the same as the following), 10-50yuan per square meter; (2) For the region in which the per capita arable land is over one mu but under two mu, 8- 40yuan per square meter ; (3) For the region in which the per capita arable land is over two mu but under three mu, 6- 30yuan per square meter ; (4) For the region in which the per capita arable land is over three mu, 5- 25yuan per square meter ;

Article 9: The financial authorities are responsible for tax collection for the occupied t land. Land management should promptly notify all financial institutions at the same level after they have approved the use of cultivated land by the units and individuals. And the units and individuals who are allowed to occupy or use apply for paying tax to the financial institutions holding approval documents approved by the county at and above. Land management departments approved allocation of land expropriation according to the tax receipts or documents.

5.2.3 Relative Regulations on deepening the reform of the strict land management decisions by the State Council

(3) Strictly enforce the compensation system for the occupation of cultivated land. Various non-agricultural constructions which are approved to use the cultivated land must provide considerable arable land with the same quantity and quality. The quantity and quality of the arable land added must be converted by the grades avoiding more occupied- less added and occupied superior- added inferior. For those who can not supplement, they must pay farmland reclamation fee in accordance with the documents of each province, autonomous region and municipality. Farmland reclamation fee must be put in the special account management, and shall not be reduced or diverted. The supplementary fees for the arable land must also be included in the project cost estimates invested by government.

(13) Properly resettle the peasants whose lands are taken over. Local people's governments above the county level should make detailed specific ways to make

58 Resettlement Plan sure the peasants’ long-term livelihood .To the construction land which may have a stable income, peasants can purchase the shares according to their rights for the land allowed by the law. In the planning areas of the cities, local people's governments should put the peasants who lost land because of land requisition into the urban employment system and establish a social security system for them. Outside of the urban planning area, when levying the land of collective ownership of farmers, local people's governments must leave necessary arable land or supply some jobs for the peasants who lost land because of land requisition in the local administrative areas; For landless peasants who do not have the basic production and living conditions, they should be migrated to different places. Labor and social security departments must coordinate with relevant departments as soon as possible to make certain guiding opinions on employment training and social security systems for peasants.

(14) Amplify the land requisition procedure. In the process of land requisition, it is necessary to protect peasants’ collective ownership of land and their right to the contractual operation of land. Before submitting the approval land requisition in accordance with the law, the peasants must be informed of the aim, location, compensation standard, resettlement way of the land requisition; The survey and findings of the land to be levied must be conformed by the local rural collective economic organizations and individuals. If it is necessary, the Land Management should organize a hearing. The material that the peasants were informed of and identified will be regarded as the necessary materials for the land requisition approval. The coordinating and judging mechanism for the land compensation and resettlement controversial should be accelerated and improved to safeguard the legitimate rights and interests of the peasants and the land users. The approved land acquisition must be made known to all, except the special instances.

(15) Strengthen the supervision of the implementation of the land requisition. If the land compensation resettlement is not implemented, the land requisition must not be carried out by force. The provincial, autonomous regional and municipal people's governments shall, in accordance with land compensation expenses are mainly used among the rural households whose land is levied, make the methods on the compensation allocated among the local collective economic organizations. The local collective economic organizations by the principle of land requisition should announce the distribution of the compensation to members of the collective economic organizations and accept supervision.

5.2.4 Relative Regulations of Guiding Opinions on Perfecting the Land Requisition Compensation and the Resettlement

(4) The allocation of land compensation. In accordance with the land compensation expenses are mainly used in rural households by the principle of land acquisition, land compensation should be allocated within the rural collective economic

59 Resettlement Plan organizations with the reasonable distribution. Specific allocation methods must be developed by the provincial people's government. For those peasants whose all land has been levied, and the rural collective economic organizations have been withdrawn, land compensation fees should be used exclusively for production and daily life of peasants.

(5) Agricultural production resettlement. When acquiring the land of collective ownership of farmers who are outside of the urban planning area, it should be through the use of rural collective flexible land, contracted land voluntarily returned by the contracted farmers and the land in the circulation or newly developed to make sure that peasants have necessary farming land and continue to engage in agricultural production.

(6) Resettlement of the re-employment. It should actively create conditions to provide free labor skills training for peasants whose land were levied and arrange the corresponding jobs. In the same conditions, land-using units should give priority to land acquisition peasants. In the planning areas of the cities, local people's governments should put the peasants who lost land because of land requisition into the urban employment system and establish a social security system for them.

(9) Inform the land requisition cases. Before submitting the approval land acquisition in accordance with the law, the local Land Management should inform the peasants of the aim, location, compensation standard, resettlement way of the land requisition with the writing form. After proclaiming compensation plan, the trees and attachments and young crops which are made afterwards shall not be given any Compensation.

(10) Confirm the results of investigation of land acquisition. The local Land Management should investigate land ownership, land type, and land size to be acquired, and they also should investigate the present situation of the ownership, type and quantity of land attachments. The results of investigation must be confirmed by rural collective economic organizations, peasants and persons who owned the property rights of land attachments.

(11) Organize land requisition hearing. Before submitting the approval land acquisition in accordance with the law, local Land Management should inform the rural collective economic organizations and peasants whose land were acquired of that they have the right to request the hearing on the land compensation and resettlement way. If the parties request a hearing, the hearing must be organized in accordance with the procedures and requirements of Regulations of Land Management Hearing

(12) Publish approval for land acquisition. Land acquisition is approved in accordance with the law, with the exception of the state secrecy provisions and

60 Resettlement Plan other special cases. The State Land Management Department and Provincial Land Management Department should make the approval for land requisition known to the society. Counties (cities) Land Management should announce the notice in the village, the group where their land has been approved to be acquired.

(13) Pay compensation for resettlement fees. After land compensation resettlement program is approved by city and county governments, compensation for resettlement fees should be transferred to the rural collective economic organizations according to the time stipulated by the land requisition

5.2.5 Provisions from Shanxi Province’s Methods on Implementing Land Administration Law of People’s Republic of China

Article 27: Units which use land will pay the land compensation according to below standards: 1.If agricultural field has to be acquired, such as garden plot, fish ponds, lotus ponds, etc, the compensation should be 8-10 times of average annual production value of past three years. 2.If cultivated land has to be acquired, except agricultural field, the compensation should be 6-9 times of average annual production value of three years ago. 3.If the meadow or grass land has to be acquired, the compensation should be 7 times of average annual production value three years before land acquisition. 4.If the forest land has to be acquired, compensation should be paid under certain rules. 5.If house land has to be acquired, the compensation which is similar with that of cultivated land shall be paid. 6.If space, wild mountains, wasteland or waste beach has to be acquired, the compensation should be 3-6 times of average annual production value three years before land acquisition. 7.If threshing floor, bleachery or other production area has to be acquired, the compensation shall be paid according to the types of original land.

Article 28: Units which plan to use land will pay the resettlement allowance according to below standards: 1.If agricultural field has to be acquired, such as garden plot, fish ponds, lotus ponds, etc, the resettlement allowance should be 5-6 times of average annual production value of three years ago. 2.If cultivated land has to be acquired, except agricultural field, the resettlement allowance should be 4-5 times of average annual production value of three years ago. 3.If the meadow or grass land has to be acquired, the resettlement allowance should be 5 times of AAOV three years before land acquisition. 4.If the forest land has to be acquired, resettlement allowance should be paid under certain rules.

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The resettlement allowance of acquired cultivated land will not be permitted to exceed 15 times of average annual production value three years before land acquisition per hectare. There is no resettlement allowance for acquiring housing land, space, wild mountain, wasteland, waste beach and threshing floor.

Article 29: The average annual production value of cultivated land three years before land acquisition shall be counted as follows: 1.The land owner has to report the planting situation of three years to village committees. 2.The local government and village committees where there is the land acquisition shall publish the planting situation to the villages in order to collect suggestions from villagers. 3.The local government and village committees have to review all the villagers’ suggestions or application. 4.At least, the government in county or higher land administrative units shall figure out the production output, value and average annual production value in last three years in accordance with planting situation, statistic reports from statistic units, and crop’s price. The counting method of average annual production value in last years shall be in reference to certain rules.

Article 30: According to the rules from Article 27 and 28, the land compensation and resettlement allowance will not make villagers maintain the original living level; therefore, the resettlement allowance shall be increased by approval of Provincial Government. However, the land compensation and resettlement allowance shall not exceed 30 times of average annual production value in last years.

Article 31: Units which use land will pay the land attachment and young crops compensation according to below standards: 1.The attachment of buildings and construction shall be compensated with some discounts and replaced by equivalent. 2.The production of young crops will be counted no more than that of first-rate crops. 3.As to those trees that could be moved, expense of labors and young crops will be paid, and the compensation shall be paid as to the trees which couldn’t be moved. 4.Compensation shall be paid under certain rules about fish, lotus or grass. After proclaiming compensation plan, the trees and attachments which are made afterwards shall not be in the case. Compensation will not be paid to buildings and other facilities which are set illegally.

5.2.6 Shanxi Province’s Charging Standards of Compensation for Woodland Acquisition

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Approved to acquire the woodland in accordance with the law, the compensation must be paid for woodland, trees, and forest vegetation restoration fee and resettlement.

(A) compensation standards for woodland acquired : (1)To the acquired woodland, the compensation would be paid as four to five times as the value of the forest reserves(according to the existing state timber prices, the same below); (2) To the acquired natural young trees and shrub, according to the situation of growth, calculate it with 200 to 400yuan per mu; (3) To the acquired man-made young trees, calculate it as four times as the value of afforestation, raising, management and protection costs; (4) To the acquired woodland for orchards, calculate it as six times as the production in their most harvested years; (5) To the acquired nurseries for young plants, calculate it as tree - six times as the output of the land nearby;

(B) tree compensation standard (1) timber compensation standards: a. compensation standards for young trees. According to the growth situation, calculate it 1-3yuan per year per man- made young trees and 0.5-2.5yuan per year per natural young tree; b. To the middle-aged and mature trees, calculate it as 80% of the value of the forest reserves when they were acquired; c. To the over-mature trees, calculate it as 30% of the value of lumbering; (2) Compensation standards for the protecting and special-use forest. Calculate it as three times as the value of timber. (3) Compensation standards for economic and fuel forest. Calculate it as two times as the average annual value of the past three years with a rich harvest; (4) Compensation standards for trees in the nursery forest. Calculate it as the equal price as the same type nursery sold in the local place.

(C) Charging standards for forest vegetation restoration fee. In accordance with the survey, the forest vegetation restoration must not less than the acquired woodland areas. Just based on the above principle, the specific standards are made as follows. (1) six yuan per square meter for timber forest, economic forest, Fuel Forest, and nurseries. (2) four yuan per square meter for non-timer forest. (3) eight yuan per square meter for the protecting and special-use forest ; ten yuan per square meter for the protecting and special-use forest. (4) three yuan per square meter for sparse woodland and shrub land. (5) two yuan per square meter for the land lumbered, burned, and suitable to plant trees.

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Two times as the above standards for the woodland in the city and urban planning areas. The peasants, who occupy woodland to build residential houses, need not pay forest vegetation restoration fee during the "10th Five-Year Plan" period.

(D) The standards of the resettlement subsidy for the acquired the woodland. Calculate as twice as the annual output per mu for the acquired collective forest land.

Calculate as three times as the annual output per mu for the acquired national forest land.

The annual output per mu of forest trees is calculated by the increasing value. The nurseries are calculated by the average annual output per mu. Economic forest is calculated by the output in its rich harvest period.

(E) The subsidy is paid by 50 percent of compensation for temporary acquired woodland. For those needing to lumber the trees, compensation for trees and forest vegetation restoration fee must be paid.

5.2.7 Notice on the Opinions of Compensation of Building Land in Shanxi

According to the government requirements of Shanxi province, the compensation for land requisition are as follows:

1.Before the new compensation standards are published, the compensation and resettlement fee for the land requisition are identified temporarily according to the standards submitted to National Land Management by Land Management Bureau of our province, in which the standard of annual output, compensating multiple, the region of all counties (cities, districts) and the actual using areas are made clear.

2. For the acquired land for highway construction projects, the compensation and resettlement fee for the land requisition are measured according to the standards submitted to National Land Management by Land Management Bureau of our province, in which the average annual output and the average compensating multiples are listed.

3. The compensation fee for the above types of construction projects on construction land, unused land and the land with the attachment as well as the young plants are still based on Shanxi Province’s Methods on Implementing Land Administration Law of People’s Republic of China.

4. The requirements for land acquisition, which have been reported to the provincial government or the State Council to be approved, will no longer adjust

64 Resettlement Plan compensation fee. After the State land compensation standards are made public, execute the compensation according to the standards.

5.2.8 Relative Regulations on Shanxi Province’s Methods on the Compensation Distribution of Collectively-owned Peasant’s Land

Article 5: The agriculture departments of the people's governments above the county’s level should strengthen the supervision of distribution of land compensation fee within the rural collective economic organizations.

Article 6: Before submitting the approval land requisition in accordance with the law, the local Land Management should inform the peasants of the aim, location, compensation standard, resettlement way of the land requisition with the writing form.

The local Land Management of the above county’s level should investigate land ownership, land type, and land size to be acquired, and they also should investigate the present situation of the ownership, type and quantity of land attachments. The results of investigation must be confirmed by rural collective economic organizations, peasants and persons who owned the property rights of land attachments. The materials confirmed should be regarded as the necessary material for land requisition. The land requisition are approved by the law should be made public.

Article 10: Land units should pay the full compensation for land acquisition to peasants whose lands were acquired within three months after the land requisition is approved. If the peasants agree, the compensation also can be paid by installment.

If the compensation is not paid fully, the Land Management Department should not give the building units the instrument of ratification and should not provide the formality. The building units must not use the land by force, and the construction can not be started. The peasants and the rural collective economic organizations have the right to continue to use the land.

Article 13: For land which is partly acquired with confirmed right, the compensation is paid not less than 80 percent as, and the left 20 percent will be given to the village collective economic organizations.

For land which is acquired with no confirmed right, not less than 80 percent of the compensation and resettlement fee will be distributed equally to the members who have the right to contract the land when the compensation plan is confirmed. The rest will be given to the rural collective economic organizations.

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Article 14: The all compensation for the land attachment and young plants should be paid to the owners of the land attachment and young plants. Article 17: The compensation left to the rural collective economic organizations belongs to the collective assets, and should be incorporated into the public welfare fund, which should be used to develop production, increase the accumulation of collective welfare, undertake the public welfare, etc., and which can not be used for the salary of the cadres or other non-productive expenditure, such as the cost of the hospitality, at the same time, which can not be used to pay off the debt.

The using plan for the compensation let to the rural collective economic organizations should be agreed by the members of the rural collective economic organizations or more than two-thirds of the members of Assembly members of Congress. Balance of payments situation should be promptly released, accepting supervision by the masses. Article 18: The rural collective economic organizations should promptly announce the situation of availability of compensation and distribution for land requisition.

The agricultural department of People's governments above the county level should audit and supervise the compensation for land requisition in accordance with the law.

5.3 ADB Policies

5.3.1 Policy Basis

(1) Policy for Involuntary Resettlement (It is established by ADB in November, 1995) and Resettlement Booklet: Guidelines to Feasible Study (1998); (2) The Asian Development Bank's policy on ethnic minorities; (3) The Asian Development Bank's policy on reducing poor;

5.3.2 Relevant policies and regulations

The involuntary resettlement policy of ADB shall include the rules as follows:

1. Avoiding involuntary resettlement if possible. 2. Reducing affected people after considering all the feasible choices if the resettlement is inevitable. 3. Giving compensation and assistance to the people that are unavoidable to resettle in order to make their economy and social situation unaffected. 4. The affected people shall have rights to know all kinds of choices about resettlements and compensation, and could consult about any questions. 5. The existing social and cultural institution in relocation area will be supported and utilized as much as possible. The people shall go into the economic and social lives in new areas. 6. Some affected groups are lack of formal legal ownership, but this should not be the barrier of compensation; women and weak groups shall be paid special

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attention, and appropriate assistance shall be provided to them in order to improve their lives. 7. Putting involuntary resettlement into the project if possible, and implementing it as one part of project. 8. ADB policy shall focus on the poorest family, families with lots of women, or other social groups. These weak groups shall gain the help to improve the situation.

5.4 Compensation standards for the Project

The project is only related to the collective-owned land and its land attachments. In accordance with some rules from Land Administration Law of People’s Republic of China, Shanxi Province’s Methods on Implementing Land Administration Law of People’s Republic of China, relevant policies from ADB, and surveys of residents in the project area, the compensation standard is decided after being checked and discussed by project groups and local governments.

5.4.1 Compensation Standard for the Acquired Collective Land

1. Compensation Standards for the Cultivable Land Acquisition

According to the documents made by Shanxi Province’s Land Resources Bureau (It is the No.193,2007), the unified standard of the AAOV for the land acquired is made by the Youyu County Land Resources Bureau, which is listed in Table 5.4-1.

The three villages in the new district involved in the project are designated in the urban planning areas. The standard of the average annual output value is set at 840 yuan per mu. The land acquisition is 9 times, and resettlement subsidy is 15 times and the green crop compensation is 1 times of AAOV. The total compensation for the arable land is 25 times of AAOV or 21,000 yuan / mu.

2. Compensation Standards for the Woodland Acquisition

Woodland land acquisition compensation includes compensation for woodland, resettlement and trees. According to Shanxi Province’s Charging Standards of Compensation for Woodland Acquisition, the compensation for the woodland acquisition is as 5 times as the annual output. The resettlement subsidy is 2 times. According to the above, the annual output of woodland is 600yuan /mu, and the compensation for the trees is 2,000yuan /mu. Based on the above, the compensation standard for the woodland acquisition is 4,800yuan / mu.

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Table 5.4-1 Unified standards of annual output value for land Acquisition in Youyu Unified standards Compensation multiplier Region of annual output Resettlement Compensation fee Name Region Name Land compensation No. value Total compensation （yuan/mu） multiplier（times） （yuan/mu） multiplier（times） Urban planning area I 840.00 24 9 15 20160

Southeast mining II development area 538.00 21 8 13 11298 Youyu County Hilly region III 516.00 18 7 11 9288

County’s unified standards of annual output value 552.10 19.19 / / 10592.87

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Table 5.4-2 Compensation for the collective land acquisition Land Resettlement Young Crop Compensation No. Items Unit compensation Subsidy compensation standard

1 Arable land yuan/mu 7560 12600 840 21000

2 Woodland yuan/mu 3000 1200 2000 6200

5.4.2 Land Acquisition Foundation and Compensation Standard for the Land Attachment

1. Facilities for agricultural use

The compensation standard for the power facilities is made according to the Shanxi Province’s Valuating Basis for Construction Project (2005). After calculation, each agricultural transformer is 20,000 yuan. 380V low-voltage transmission lines`s restoring compensation is 170 yuan / m. The compensation for the restoring the machine well is 16,000 yuan for each one.

2. Trees in the field Most of the trees in the field are poplars in the project. Referring to the price in the local market, compensation standard is 110 yuan for each tree.

Table 5.4-3 Compensation for the land attachment No. Item Unit Compensation Price(yuan) Remark

1 Agricultural TransformerPiece 20000

2 Low-voltage lines M 170

3 Dry Well Piece 16000

4 Trees in the Field Piece 110

5.5 Entitlement Matrix of Affected People

According to the survey made by the Project Office of the county and the Project Designing Units, the main impact has been confirmed based on the natural loss. The Table 5.5-1 following about the AP’ entitlements can be regarded as the basis of the compensation.

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Table 5.5.1: Entitlement Matrix Compensation Standard（yuan） Types of Category AP Compensation Policies on the Compensation Impact Items standard Cultivable 3 villages Cultivable land 1. The land acquisition for the project construction. The land 21000yuan/mu Land /116HH/454AP compensation compensation cost, resettlement subsides and compensation for young plants will be totally paid to the households whose land is acquired.

2. The compensation standard for the cultivable land is made according to the relevant regulations of documents of Shanxi Province’s Land Resource Bureau (No.193, 2007).

Permanent 3. Based on the local market price, integrated Measurement of Land Basis for Construction project price in Shanxi Province(2005)and Forest Maguantun Forest land Acquisition 6200yuan/mu the affected people’s opinions, attachment compensation Land village/7HH/26AP compensation standards will be set.

4. The compensation standard for the forest land is made according to the relevant regulations of Shanxi Province’s Charging Standards of Compensation for Forest land Acquisition.

5. Before the land is acquired, the land compensation cost, attachment compensation cost and forest land compensation cost will be allocated to the affected land contractors. Agricultural 20000yuan transformer To all the affected land attachment, based on the actual situation, the project office will give compensation to the people who own Attached Low-voltage Attachment Owner 170yuan/m the ownership facilities electronic lines Well machine 16000yuan for each

Trees in field 110yuan for each

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6 Income Restoration and Resettlement Plan

The working staff of the RP designing group, under the unified guidance of the leading group of Youyu county government, according to the economic development of the affected villagers and current situation of the resource utilization, on the basis of detailed investigation and opinions that were asked from villagers and leaders, in accordance with China's current policies, laws and regulations and the request of the resettlement of the ADB, have developed preliminary rehabilitation plan.

6.1 Objectives and Principles

6.1.1 Objectives of Resettlement Plan

People and villages affected by the project will be given reasonable compensation, proper arrangements to ensure the living, income and the production of affected people after resettlement better than before.

6.1.2 The principle and the guiding ideology of resettlement scheme

1. Resettlement plan preparation should be based on the socio-economic survey and the affected objects index, as well as national and local land acquisition policies, regulations and Policy for Involuntary Resettlement by ADB. 2. Optimize the project design to reduce the scope of the land acquisition and the involuntary resettlement to minimum. Adopt every measure for the convenience of the people and reduce the nuisance to the public during the construction. 3. All the compensation and resettlement are part of the project. The sufficient fund must be timely provided for the affected people and the affected people can benefit from the project. 4. Ensure that all the resettlerss can get all the compensation before the implementation of the project. The reasonable arrangements for their livelihood and effective restoration to the production should be given to the AP, who shall get grants and assistance if they are in the temporary trouble. 5. Ensure that all AP’ standard of living, productivity and income can be equal or better than before after the end of the land acquisition. 6. This project will give compensation to the entire AP belonging to the project area. Those whose household register or leasing procedures are not compete can not be regarded as the excuses as refusing to provide compensation or help. 7. Those who occupy the house or land without authorization will not get compensation or resettlement. Those who do not sign the resettlement agreement or refuse to move after the signing will be handled according to the certain justice procedures. 8. Reasonable compensation will be paid for the land acquisition and the loss. Land compensation will be paid directly to all the AP. 9. All the compensation should be paid within three months from the day on which

72 Resettlement Plan the land compensation and resettlement scheme are approved, no later than the day on which the land will be used for the first time. 10. All the labor force affected by land acquisition must be resettled and their life standard and income are not reduced. Encourage them to resettle in their local place and develop the secondary and tertiary industries. 11. Encourage the AP to take participate in the process of resettlement plan designing and implementation. Timely publish the policy and standard for compensation. Extensively ask for the affected people’s opinion on the compensation for the resettlement, which also should be reflected in the plan. 12. Pay enough attention to the complaints and appeals of the affected people. Timely solve the difficulties and inconvenience encountered in the process of land acquisition. The affected people’s views on the compensation should be resolved by consultation as many as possible. If not, they should be resolved by adjudication even prosecution. Any compulsory action by the building must follow the relevant legal proceedings. 13. All working units related to the AP should strengthen the cooperation. Amplify agencies at all levels. Train all the staff on duty. 14. During the implementation of project, the office in the county for the project should carry out the internal monitoring to the implementation, and hire an independent monitoring unit to go on an external monitoring. The monitoring report should be reported to the ADB regularly. The evaluation to the resettlement work must be done after the project. 15. During the process of the resettlement plan, if there is any significant change (including the reduction of compensation standard, the change of the land acquisition location or scale, adding a new sub-item, a sub-item to domestic investment projects, etc.), all these situations should be reported to the ADB in advance. If necessary, it is possible to modify the resettlement plan or prepare other resettlement plan. 16. If the project developed not by the ADB overlaps the project by the ADB in the project region developed by the ADB in advance or at the same time, then the ADB project can join together, but all the compensation and resettlement policies must meet the requirements of the resettlement plan.

6.2 Resettlement Tasks

According to the survey, there are no buildings, structures involved, and no affected people needing to be relocated in the area affected by the project. There is also no special infrastructure affected.

The project's resettlement task is mainly to compensate the people affected by the permanent land acquisition and the land attachments, provide rehabilitation and restore the production conditions and help women and vulnerable groups in the rehabilitation process.

6.2.1 Compensation for permanent land acquisition

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According to the survey statistics, there are 116 households (454 people) affected by the land acquisition of 494 mu of rural land, including 456 mu farmland and 38 mu forest land, all belonging to the long-term contractors or directly-affected people. Among them, there 7 households and 26 individuals would be affected by both farmland acquisition and forest land acquisition..

Table 6.2-1 population affected by the permanent land Acquisition Groups of Population directly-affected Population indirectly-affected Affected Villages affected household population household population villagers Youfang 1 38 150 —— —— Maguantun 1 68 270 —— —— Zhangjiadian 1 10 34 —— —— Total 3 116 454 —— ——

According to relevant regulations, compensations for acquired farmland is set at 25 times of AAOV or 21,000 yuan per mu, which include 9 times of AAOV for land compensation, 15 times of AAOV for resettlement subsidy and 1 time of AAOV for green crop compensation. For affected forest land, the compensation is set 6,200 yuan per mu.

According to relevant provision in Shanxi Province Peasants’ Collective Land Compensation Allocation (2005), and the agreement made between affected villagers and village groups, the land compensation, resettlement subsidy, and young crop compensation will all be paid to the affected households. Along with land acquisition, no land readjustment will be made. For affected forest land, all compensation will be paid to affected households.

6.2.2 Compensation for Land Attachments

Compensation for the land attachments involved in the project will be put into the account of people with the ownership together with the land acquisition compensation, in accordance with the standard confirmed in the resettlement plan.

6.3 Economic Rehabilitation Plan for Affected Households

6.3-1 Land Loss Impact

According to the impact survey, the construction of the Project involves permanent land acquisition of 494 mu of land areas, including 456 mu of farmland. The acquisition of 456 mu of farmland will affect 116 households and 454 persons in 3 villages. The land acquisition would cause land reduction of 4.43% among 3 affected villages. For those directly affected households, the land acquisition would cause

74 Resettlement Plan reduction of 18.6% of their current land holding, with per capita farming being reduced from 5.41 mu to 4.41 mu, ranging from 2.1 mu in Youfang Village to 5.85 mu in Zhangjiadian Village. Such land holding after land acquisition would still ensure grain production for the affected households. Based on average 350kg of grain yield in the region, the remaining farmland could provide 735kg to 2,048kg of grain for each affected household in these 3 villages for their own consumption, even though most of the households would prefer purchasing some wheat and rice to supplement their diet structure. Table 6.2-2 summarizes the basic land reduction situation in these three villages.

Table 6.2-2: Land Acquisition Impact for affected People Per Per Total Acquired Percent Land loss Affected Affected Capita Capita Villages Farmland Farm of land per HH Persons Farmland Farmland (mu) land (mu) Loss (%) household before After

Youfang 38 150 452 136 30.2% 3.57 3.01 2.10 Maguan 68 270 1774 287 16.2% 4.78 6.57 5.51 Zhangjiadian 10 34 232 33 14.2% 3.30 6.82 5.85 Total 116 454 2458 456 18.6% 4.26 5.41 4.41

Among 116 affected households, the land loss is not necessarily evenly distributed. According to the impact survey, 29.3% of households will lost less than 10% of land holding, 54.3% will lose 10 to 30% of their land holding, and 9.5% would lose 30 to 50% of land holding; 6% would lose 50 to 70% of land holding and 0.9% would lose 70 to 90% of land holding (Table 6.2-3). Since most of them would still have certain amount of farmland remaining and since the yield of the farmland is relatively low, most of the affected households would prefer cash compensation and hope to use compensation fund to engage non-land based income generation activities in order to improve their current conditions.

Among 116 affected households, only one household would have less than 1 mu per capita of remaining farmland. The household has a shop in local market with steady income. The land acquisition would acquire 6.6 mu of farmland with only 2.6 mu remaining. For such land acquisition, they could receive a total of 138,600 yuan of land compensation. The annual interest income alone would be 5,738 yuan, which is much larger than income from lost farmland or 3,300 yuan. With such compensation, his income and livelihood will not be affected.

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Table 6.2-3: Land Acquisition Impact for affected People Per HH with Total Total Total Acquired Remaining Percent capita degree of affected Affected Farmland Farmland Farmland of Loss remaining Impacts Households Persons (mu) (mu) (mu) (%) Land Total 116 454 2457.6 456.3 2001.3 18.6% 4.41 < 10% 34 147 833.5 63.5 770 7.6% 5.24 10%-30% 63 238 1325.1 258 1067.1 19.5% 4.48 30%-50% 11 45 200.2 77 123.2 38.5% 2.74 50%-70% 7 11 45.2 26.4 23.8 58.4% 2.16 70%-90% 1 3 9.2 6.6 2.6 71.7% 0.87

6.3-2 Income Loss and Rehabilitation for Affected Households

Through social economic survey, the social economic conditions of the affected villages are very similar with close distance. Most of the income came from migrant labors with income from planting is quite limited, which was 12% for Youfang Village, 32% for Maguantun Village, and 23% for Zhangjiadian Village. Since all these villages are located near the town center with relatively abundant migrant labors and small business opportunities. By having cash compensation, the affected people could expand their income from non-land based income generation activities so that their income could be restored or even improved.

Table 6.2-4 provides analysis of land loss among affected households in three villages, including potential farmland impact, income loss, as well as compensation received and potential income from such compensations.

Table 6.2-4 Compensation and Rehabilitation Scheme (yuan) Lost Lost Total Annual Net Gain Per HH Affected Farm Affected Per HH Income Compensati interest （Yuan interest Villages land HH net gain (yuan) on income ） income Mu Per year Youfang 136 68,000 2856000 118,238 50,238 38 3,112 1,322 Maguantun 287 143,500 6027000 249,518 106,018 68 3,669 1,559 Zhangjiadian 33 16,500 693000 28,690 12,190 10 2,869 1,219

Total 456 228,000 9576000 396,446 168,446 116 3,418 1,452 Note: The income for acquired farmland is based on actual income obtained from farming which is 500 yuan per mu.

Based on the table, it could be seen that if the affected households deposit their compensation in the banks, with annual interest rate of 4.14%, they could at least receive annual interest income of 3,418 yuan per household, which is 1452 yuan more than income they would lose due to lost of 3.93 mu of farmland per household, which is estimated at 1,966 yuan per household based on 500 yuan per mu of gross

76 Resettlement Plan yield. In other words, the compensation will ensure that the affected people will not suffer any income loss due to land acquisition. Here, depositing compensation in the bank is only one option of economic rehabilitation with lowest risk. Most affected households could still involve in non-farm activities to increase their income and livelihood.

6.3-3 Options of Income Restoration According to the social economic survey, since the affected villages are located either within or near the town center, majority of their income came from non-farm and non-land based activities, averaging 77%, which include regular wages, migrant labors, and small business. These activities could be further increased along with development of proposed Project. With development of new town district, more and more secondary and tertiary opportunities will be available. In order to ensure that affected households could benefit such development, following measures will be taken.

(1) During the new district construction, the affected people will be given the priority to participate in the construction, such as transporting construction material, working at project site, undertaking the service works, etc.

(2) The affected people particularly females will also be given priority when the employment of newly completed facilities are available, which include jobs of facility maintenance, management, cleaning and so on.

(3) The project sponsor will create conditions for the affected households in leasing shops and market stands in the new town in order to increase their income and improve their livelihood.

(4) The county government will waive first three years taxes for those who set up new business in service sector.

(5) To facilitate the development of non-farm activities by affected people, the county government will provide skill training and job introduction for the affected people.

Based on extensive consultation in three affected villages, a preliminary rehabilitation plan has been developed for the affected households..

1. Youfang village

Youfang village is located within the town center close to Yuyang livestock market. The market contains many shops for trading livestock, meat, and fur processing business with more than 1000 employees. The affected households could use compensation from land acquisition to set up small shop in the market, which could bring at least 8,000 yuan per year, which is far more than income from acquired

77 Resettlement Plan farmland or 1,789 per household. The income of acquired land for each household is estimated based on 500 yuan per mu for 3.57 mu in Youfang Village. With expand urban economy, the affected households could also take advantage to carry out the transportation, machine repairing, food processing, small restaurant, and building commercial houses, etc. These activities will generate more income than they could get from agriculture. In addition, most of people will utilize a part of compensation purchase social security plan so that they will have pension after retirement (For details see Table6.3-1).

Table 6.3-1: Youfang Village: Income Loss, Compensation, and Rehabilitation Measures (1) Degree Total Acquired % of Percent of Annual Annual Remaining Total of Land Farmland Farm Affected Land Income Income Interest land Compensation Loss (%) holding land HHs Loss Loss Loss per Income per per HH per HH (mu) HH HH <10% 100.0 8.7 8 11.4 8.7% 1.0% 544 22,838 945 10%-30% 208.9 54.8 17 9.1 26.2% 3.1% 1612 67,694 2803 30%-50% 84.1 36.3 7 6.8 43.2% 5.0% 2593 108,900 4508 50%-70% 49.4 29.8 5 3.9 60.3% 7.0% 2980 125,160 5182 70%-90% 9.2 6.6 1 2.6 71.7% 8.4% 3300 138,600 5738 90%-100% 0 Total 452 136 38 8.3 30.2% 3.5% 1789 75,268 3116 Note: (1) The average per capita income in Youfang Village was CNY8369 in 2007 and per household income was CNY34,062; and income from farming accounted for 11.67%. (2) Lost income is based on gross value of CNY500 per mu, which is substantially higher than the net income, which is often subject to high input cost and natural disasters. (3) The interest for depositing in the bank is 4.14% per year.

Table 6.3-1: Youfang Village: Income Loss, Compensation, and Rehabilitation Measures (2) Degree Option 1：Migrant Work Option 2：Non-farm Activities Option 3：Retirement Pension of Land Affected Net No. Initial Net No. of Net No. of Initial Loss HHs Income of Investment Income HHs Income HHs Investment (%) per HH HHs per HH per HH <10% 8 8 8000 10%-30% 17 17 8000 30%-50% 7 4 8000 1 30000 10000 2 20000 2000 50%-70% 5 2 60000 20000 3 20000 2000 70%-90% 1 1 60000 20000 90-100% 0 Total 38 29 8000 4 52500 17500 5 20000 2000 Note: (1) Migrant Work is mainly from working in Yuyang Livestock Market and other places. (2) Non-farm activities are mainly those business involved in selling cattle, and meat and fur processing. (3) Retirement pension plan is often adopted by those households with elderly. By purchasing the plan, the elderly could receive pension for the remaining lives.

2.Maguantun village

There are four brick factories near Maguantun village, which require 200 employees. The village committee has already made agreement with brick factories, the AP will have priority to get the working chance. The AP will utilize the compensation to buy trucks for transporting bricks, the transportation income is about 25000yuan/year.

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The annual income is at least 7000yuan even if they choose to work for the factories. Some affected people are preparing to start their business or work for others at the Yuyang livestock market; some are going to cooperate with vegetable proceeding factory by building greenhouse vegetables on the remaining farmland, or work for vegetable proceeding factory. Most of AP will use part of compensation to buy social security insurance in order to have pension after retirement (for details see Table3.3-2).

Table 6.3-2: Maguantun Village: Income Loss, Compensation, & Rehabilitation Measures (1) Annual Annual Degree of Total Acquired % of Percent of Total Affected Remaining Income Interest Land Loss Farmland Farmland Land Income Compensation HHs land per HH Loss per Income (%) holding (mu) Loss Loss per HH HH per HH <10% 596.3 45.0 20 27.6 7.55% 2.41% 1125 47,250 1956 10%-30% 1021.3 180.0 42 20.0 17.62% 5.63% 2143 90,000 3726 30%-50% 116.1 40.7 4 18.9 35.06% 11.20% 5088 213,675 8846 50%-70% 40.2 21.4 2 9.4 53.23% 17.00% 5350 224,700 9303 70%-90% 90%-100% Total 1774 287 68 21.9 16.18%5.17% 2110 88,662 3669 Note: (1) The average per capita income in Maguantun Village is CNY6908 in 2007, and per household CNY25421; and income from farming is 31.94%. (2) Lost income is based on gross value of CNY500 per mu, which is substantially higher than the net income, which is often subject to high input cost and natural disasters. (3) The interest for depositing in the bank is 4.14% per year.

Table 6.3-2: Maguantun Village: Income Loss, Compensation, & Rehabilitation Measures (2) Option 1：Migrant Option 2：Non-farm ActivitiesOption 3：Retirement Pension Degree of Work Affected Land Loss Net Initial Net No. of Net HHs No. of No. of Initial (%) Income Investment Income HHs Income HHs HHs Investment per HH per HH per HH <10% 20 20 7000 10%-30% 42 28 7000 8 40000 15000 6 20000 2000 30%-50% 4 1 7000 2 40000 15000 1 20000 2000 50%-70% 2 2 40000 15000 70%-90% 0 90-100% 0 Total 68 49 7000 12 40000 150007 20000 2000 Note: (1) Migrant works include those working in 4 brick factories in nearby locations. (2) Intensive farming refer to greenhouse vegetable to be built on remaining farmland. (3) Retirement pension plan is often adopted by those households with elderly. By purchasing the plan, the elderly could receive pension for the remaining lives. 3.Zhangjiadian Village

The affected people from Zhangjiadian village will use part of compensation to buy trucks for transporting bricks, because there is one brick factory which would bring about 40 jobs; some AP are going to start the business or work at the Yuyang livestock market; some are preparing transportation, machine repairing, food

79 Resettlement Plan processing industry, restaurant , building commercial houses, or work for other factories or companies.

Table 6.3-3: Zangjiadian Village: Income Loss, Compensation, and Rehabilitation Measures (1) Annual Annual Degree of Total Acquired % of Percent of Total Affected Remaining Income Interest Land Loss Farmland Farmland Land Income Compensation HHs land per HH Loss per Income per (%) holding (mu) Loss Loss per HH HH HH <10% 137.2 9.8 6 21.2 7.14% 1.66% 817 34,300 1420 10%-30% 94.8 23.2 4 17.9 24.47% 5.68% 2,925 121,800 5043 30%-50% 50%-70% 70%-90% 90%-100% Total 232 33 10 19.9 14.22% 3.30% 1,650 69,300 2869 Note: (1) The average per capita income in Zangjiadian Village is CNY3733 in 2007 with per household income being CNY14149; and income from farming is 23.21%. (2) Lost income is based on gross value of CNY500 per mu, which is substantially higher than the net income, which is often subject to high input cost and natural disasters. (3) The interest for depositing in the bank is 4.14% per year.

Table 6.3-3: Zangjiadian Village: Income Loss, Compensation, and Rehabilitation Measures (2) Option 1：Migrant Work Option 2：Non-farm Activities Option 3：Retirement Pension Degree of Affected Net No. Net Net Land No. of No. of HHs No. of HHs Income of No. of HHs Income Income Loss HHs HHs per HH HHs per HH per HH <10% 6 6 7000 10%-30% 4 2 7000 1 70000 25000 1 20000 2000 30%-50% 0 50%-70% 0 70%-90% 0 90-100% 0 Total 10 8 7000 1 70000 25000 1 20000 2000 Note: (1) Migrant works include those working in 1 brick factory in the village. (2) Non-farm work refers to operating small transport business. (3) Retirement pension plan is often adopted by those households with elderly. By purchasing the plan, the elderly could receive pension for the remaining lives.

Through income restoration plan and implementation of village restoration plan, the labor force from AP could be rehabilitated and their living standard will be restored and improved.

6.4 Training Plan

Affected villagers all mentioned their wish to improve the working qualification, they wish to get the training opportunity on livestock raising, meat processing, greenhouse construction, and greenhouse vegetable planting.

According to their suggestions, with the support from county scientific committee, poverty alleviation office, women union, labor bureau and other bureau, IA has developed training plan, which ensure at least one chance of vocational training for each AP, the training cost will be paid by PMO. The primary training plan is as follows:

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-- Labor Contract Law, each lasting 5 days with 204 people at most; -- Computer applications, each lasting 10 days with 49 people at most; -- The construction, planting and management of greenhouses, each lasting 5 days, with 117 people at most; -- Hotels, catering services, each lasting 5 days, with 53 people at most; -- Home Economics services, each lasting six days, with 108 people at most; -- Weaving classes, each lasting six days, with 99 people at most; -- Family breeding industry, each lasting 10 days, with 41people at most; According to the application by the affected people, the project will announce the numbers and time of each training class in October 2008 and the training will be finished before the end of the land acquisition.

Through these measures, ensure the working force because of land acquisition can find their way out, and their livelihood can be quickly restored and improved.

6.5 Assistance to Women

The arrangement of living and income of different genders should be equal. In the project area, women are mainly involve with housework and farming, such as cultivating, planting, breeding, selling agricultural goods, etc. Women’s production activity is an important source of income for the whole family, but the land acquisition will increase their economic burden. Therefore, it is important to make a plan for women’s economic activity and to support with their works.

During the process of restoring and rehabilitation, some meetings should be held to discuss about arrangement of women. Some training activities, including agricultural techniques and non-agricultural techniques, will be provided to generate their employment and increase their income. Relevant technical support and help shall be provided to every affected woman.

6.6 Assistance to vulnerable Group

The assistance measures to vulnerable group include one-time resettlement subsidies payment and sustained assistance.

1. One-time resettlement subsidies payment：

In the budget of the resettlement plan, 101,500 yuan (1% of total investment) shall be used as the supporting fund to the disadvantaged groups. And the fund will be allocated to these disadvantaged groups in the form of cash according to 3500 yuan / person standards.

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The subsidies Standards and number of people receiving it shall be adjusted according to national policy, final sum of money approved by the project and final number of the vulnerable people. The assistance plan will be disclosed before the assistance is delivered to the affected vulnerable people..

1. Sustained assistance measure：

（1）To provide a separate and confidential consulting; （2）To provide minimum living security and health insurance; （3）To provide elderly (without young persons) with additional allowances; （4）To provide adequate jobs for the disabled people; （5）To provide job opportunities to the female single-parent families; （6）To provide small loans to the weak groups, and give priority to employment; （7）Have the priority to the access to all the other development assistance for the negative influence and development assistance.

Table 6.6-1: Assisting Measures to the Poor and Vulnerable Groups Type Measures Standard Paying Ways

Minimal needing household Granting minimum living Cash, /the “Five Guarantees" 35yuan/month/ allowances and Daily household/ person financial aid necessities Poor household

Job placement, Single-parent families Duty-free, Cash (woman headed） Financial aid Cash, Basic old-age insurance, 35yuan/month/ Elderly families Daily Financial aid person necessities Job placement, Families with disabled Duty-free, Cash people Financial aid

According to the Medical insurance, standards of Reimbursement, Families with serious Medical assistance, Medical Insurance Cash, diseases Help to be employed, Department and the Daily Financial aid Civil Affairs necessities Department

Financial aid: the special fund to support the weak groups in the resettlement plan (1% of the total investment). By taking these measures, the vulnerable groups can greatly benefit and their life standard will surely be improved.

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7. Institutional Arrangement and Management

7.1 Institutional Establishment

To make sure the resettlement plan can be effectively carried out, a resettlement institution network in all levels of government has been set up, which will be responsible for the resettlement planning, coordination, implementation and supervision of the project. The relevant institution involved in the resettlement includes: (!) PLG; (2）PRO；(3）towns resettlement working group;(4）village committee resettlement working groups;（5）external monitoring and evaluation agency.. Table 7.1-1 summarizes the personnel arrangement for these organizations and Table 7.1-2 include basic responsibilities of these institutions.

Table 7.1-1: Personnel Arrangement of PRO Name of Organization Unit Present Post Post in the Project County Government County Governor Group Leader County Government Vice County Governor Deputy Group Leader Development and Reform Bureau Managing Director Financial Bureau Managing Director Construction Bureau Managing Director Transportation Bureau Managing Director

Leading Group of Land and Resources Bureau Managing Director Project Resettlement Environment Protecting Bureau Managing Director Members Forestry Bureau Managing Director Water Conservancy Bureau Managing Director Coal Management Bureau Managing Director Xincheng Town Government Major Bureau of Meteorology Managing Director Government Procurement Centre Director Development and Reform Bureau Managing Director Director Project Resettlement Deputy Managing Development and Reform Bureau Deputy Director Office Director Development and Reform Bureau 8 Members Xincheng Town Government Deputy Mayor director Xincheng Town PRO Department staff of Xincheng 3 Members Town Government Village committee of Village committee of Youfang 3 Members Youfang Village Village Village committee of Village committee of Maguan Tun 3 Members Maguan Tun Village committee of Village committee of Zhangjiadian 3 Members Zhangjiadian Village Village

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7.2 Institutional Responsibilities

Table 7.2-1: Institutional Responsibility Item Responsibility

• In charge of setting out policies on resettlement; PLG • Coordinating with every level of resettlement institution. • Committing DI confirm the affected scope, committing all the local resettlement institution to do the socioeconomic survey and keep the data; • Organizing and coordinating the design and implementation of RP; • Organizing the public consultation, promoting resettlement policy. • Managing, disbursing and utilizing the resettlement cost; • Guiding, coordinating, supervising resettlement scheduleand activity of PRO resettlement implementation. • Assisting to undertake the land acquisition procedures; • In charge of training of town and village resettlement workers. • In charge of internal monitoring activity, designing internal monitoring report, participating in capital payment and audit every year. • Assist to carry out the external monitoring activity. • Preparing the proceeding report and reporting to PLG.

• Participating in the survey and assisting to design RP; • Organizing public participation, promoting resettlement policy; • Implementing, checking, monitoring, and recording the resettlement Villages and activity within the project area; Towns • In charge of disbursing and managing compensation cost; Resettlement • Signing on the land acquisition agreement with AP, monitoring the land Group acquisition and removing attached facilities. • Reporting the land acquisition and resettlement situation to the PRO; • Coordinating to get rid of conflict and problem during the work.

• Working in the socio-economic and project impact survey; • Organizing public consultation, promoting land acquisition and resettlement policy; Village • In charge of managing and disbursing resettlement cost. Committee • Reflecting opinions and suggestions to relevant higher level of and Village department. Group • Handling appeal; • Reporting the resettlement implementing proceeding. • Helping the vulnerable HH to be reallocated.

• Minimizing the resettlement impact through priority plan; Consultation • Suggesting/confirming the land acquisition and resettlement impact and Design scope; Department • Assisting the EA/IA during RP preparation. • Serving information and data collection and treatment

External • Providing technical support on land acquisition and resettlement. Monitoring • As the independent monitoring institution, it monitors implementation of Institution RP, and reports to EA and ADB

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7.3 Institutional Relationship

During the period of land acquisition and resettlement, all the resettlement institution must sign the contract or agreement, and make clear the content and the institution’s responsibility. The procedure of negotiating with the contract is as below:

1. During the period of implementation, the project PMO will firstly entruse an experienced independent monitoring and evaluation agency to carry out external monitoring and evaluation for the Project. 2. The county PRO will sign on Land Acquisition Compensation Agreement financed by ADB with the affected town. 3. The government in town shall sign Land Acquisition Compensation Agreement financed by ADB with every administration village affected by land acquisition. 4. Every administration village shall sign land compensation agreement with each affected household and deliver the compensation accordingly.

7.4 Measures

To make sure that the resettlement project can be carried on well, the project resettlement office will take measures to strengthen the institution’s ability

1. Optimizing the personnel organization, the institution is composed of the professional personnel and management personnel, all of them must have experience in land acquisition. 2. Organizing the resettlement training for relevant resettlement staff in both county and town or village levels ADB’s policy on resettlement 3. Providing enough fund and equipment for the institution 4. Building the data-base, strengthening the information’s feedback, and making sure the information flow successfully among all the institutions. 5. Strengthening report system, internal supervision, and solving the problem in time, 6. Building internal supervision and external monitoring and assessing system, and building the warning system

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8. Monitoring and Evaluation and Report

To make sure the RP could be implemented smoothly and achieve the resettlement goal, this project will monitor the whole process of land acquisition and resettlement. The monitoring includes internal monitoring and external monitoring.

8.1 Internal Monitoring

8.1.1 Monitoring Objective

The objective of internal monitoring is to make sure all the resettlement institution maintain good function during the resettlement implementation, ensure the benefit of affected people, and make sure that the project can be completed successfully. It should ensured that all the resettlement institution could implement land acquisition and resettlement according to the compensation and schedule of the RP, and all the relevant units should be responsible for their lower level units.

8.1.2 Institution and Personnel The internal monitoring will be undertaken by the PRO, and will be implemented by the resettlement office and county or town. For effectiveness of the process, the resettlement institution will provide special personnel to work on the internal monitoring, and they all take part in designing and implementing RP, and carry out monitoring in accordance with RP.

8.1.3 Content of Monitoring 1. Payment and utilization of resettlement compensation 2. Support for vulnerable group 3. Economic rehabilitation for affected laborers (including women) 4. Land compensation distribution 5. Implementation progress for above activities 6. Compensation policies compliance 7. Affected people’s participation and consultation during implementation 8. Process and outcome of complaints Preparation of the personnel, training, working timetable and all the resettlement institution’s status

8.1.4 Monitoring Procedure 1. The PRO has already developed an internal monitoring framework to check the resettlement activities. The office has built the data-base for the land acquisition and resettlement, and will monitor the whole preparation and working process.

2. During the implementation period, all the resettlement institution should establish resettlement information database, and keeps it updated according to real situation,

86 Resettlement Plan and report the record and status to the higher institution to maintain monitoring resettlement.

3. In above monitoring system, the information table has been formed to connect the village resettlement office with the PRO, all the resettlement offices will form the internal monitoring system.

4. The PRO will check the resettlement regularly, and prepare the internal monitoring report every six months and submit them reports to ADB along with Project progress reports.

8.1.5 Monitoring Report After starting the resettlement, the lower resettlement office should submit reports to the higher resettlement office. According to these reports, the PRO will submit the report to ADB every six months.

8.2 External Monitoring

8.2.1 Monitoring Objective

The external monitoring will be undertaken by an independent agency to monitoring and evaluate the resettlement implementation. With the opinion and suggestion given from external monitoring, warning system shall be provided for the project management departments.

The external monitoring and evaluation agency will be the consultant of the resettlement leading group and resettlement office to monitor and evaluate the resettlement progress. It will provide consultation suggestion and mitigation measures.

The external monitoring and evaluation agency will provide technical helps to PMO, and go through the resettlement surveys and the affected people surveys according to the requirements. They should monitor all aspects of resettlement implementation. Meanwhile, the external monitoring and evaluation agency could provide assistance to the PMO in preparing the annual and semiannual resettlement progress report. In addition, the external monitoring and evaluation agency will submit the annual and semiannual external monitoring reports to PRO and ADB.

8.2.2 Agency and Personnel The external monitoring and evaluation agency should be a company with enough experience about resettlement, and the PRO will choose the prior one through public bidding or inviting bids during the implementation period.

8.2.3. Method of Monitoring

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The monitoring activity is based on the data and information from surveys by the DIs and resettlement IA. The evaluation is based on the comprehensive investigation, site-visiting and rapid appraisal. Choosing the typical example, evaluation system shall be built the for the different affected objects, experienced resettlement specialists shall be hired to make reference to the guideline, international research results on improving life quality, analyze the result of the surveys, and then evaluate the result.

8.2.4. Monitoring Indicators 1. Monitoring Indicator (1) Progress: including the preparation and implementation of the land acquisition and resettlement, and rehabilitation of those affected. (2) Quality: including the construction quality and people’s satisfaction. (3) Investment: including the fund payment and usage 2. Evaluation Indicator (1) Economy status: Family’s economy status before and after the resettlement, including the production conditions, living conditions, income and property. (2) Environment status: Living environment before and after the resettlement, including the transportation, culture and education, sanitation and commercial service. (3) Employment status: Change of employment, employment rate, providing help for the pool family and vulnerable groups before and after the resettlement. (4) Development of committee: Economy of new location, environment, public relationship, the public opinion before and after the resettlement. Vulnerable group status: vulnerable people’s resettlement, help and restoration.

8.2.5 Monitoring Content

1. Survey on Living Standard

Research shall be done on this project and living level by collecting the samples. The living level investigation shall be carried out once every year to investigate the change of life. Take regular investigation, discussion and on-spot visit to collect the information. Result shall be obtained according to this investigation.

The investigation table of living level will be formed by all the living indicators which will reflect the life’s change by the situation before and after the land acquisition. Whether the guideline can reflect the life’s change, it will be checked in the next investigation and changes according to the fact in order to make sure that the information can reflect the life’s quality and level. The size of examples accounts for 15%, of which10% is for vulnerable group.

2. Public Consultation

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The external monitoring and evaluation agency will take part in the publics’ consultation in village or county. The external M& E agency will evaluate the results and the cooperation status of the resettlement. During the resettlement period and then, these movements will go on.

3. Opinions from Concerned People

The external monitoring and evaluation agency will often interview the village groups or resettlement institution to collect the opinions, and interview the villagers which complain about formal or informal system. Reflecting the affected peoples’ opinion in time and giving the improved opinion. The aim is to make sure the resettlement can be developed effectively.

4. Other Responsibilities

The external M& E agency shall supervise the following movements during the working period:

(1) Resettlement and restoration of production (2) Help for the vulnerable group (3) Compensation’s payment and amount (4) Employment generation (5) Training (6) Schedule for the above activities (7) Resettlement institution (8) Use of the collective land compensation and AP’s income (9) Income, payout and property of people concerned (10) Remnant laborer’s employment and income status

8.2.6. Working Processes 1. Designing the outline of monitoring and evaluation 2. Developing Computer software for monitoring and evaluating the resettlement. 3. Writing the survey outline, survey forms, the record card for sample village and HHs. 4. Design of surveys in sample villages and households 5. Base-line surveys. 6. Establishing the information system for monitoring and evaluation 7. Monitoring investigation: Community socio-economic survey, resettlement implementation institutions, Village survey, HH survey, Survey for other affected objects. 8. Sorting of Monitoring information and establishment of database. 9. Comparison analysis 10. Preparing an external monitoring and evaluation report each year

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8.3 Reporting Plan

8.3.1 Reports on Internal Monitoring

1. Reporting Cycle

All the resettlement institution should at least submit the quarterly progress report of project to their higher resettlement institution after the project begins, the PRO should submit the seasonal resettlement report to ADB.

2. Format and Content

In accordance with the requirements of ADB’s, the format of the report contains two parts: the first part is the text which makes an explanation of land acquisition and resettlement compensation. The problem encountered in reality will be reflected, and handling way and measures shall be found. The second part is the table including data in every half a year, and the table reflects the actual status of land acquisition, resettlement and compensation.

8.3.2. Independent M & E Report

The external monitoring institution will submit a report in one month after the field survey is completed. When the PRO submits the report to ADB, they will also submit the monitoring and evaluation report. The external monitoring institution will take part in the village’s consultation meetings, monitor the whole progress of project, and pay more attention to the vulnerable group.

1. Reporting Cycle

According to the requirements of ADB and the arrangement of the project, two monitoring and evaluation surveys shall be taken each year when the project starts, the evaluation will continue according to the resettlement status. The external monitoring cycle is as follows: （1）Providing monitoring summary in May of 2009 and doing baseline survey; （2）First monitoring in October of 2009 and submitting M & E report. (No.1 )； （3）Second monitoring in April of 2010 and submitting M & E report. (No.2 )； （4）Third monitoring in October of 2010 and submitting M & E report. (No.3 )； （5）Fourth monitoring in April of 2011 and submitting M & E report. (No.4)； （6）Fifth monitoring in October of 2011 and submitting M & E report. (No.5 )；

2. Report Content

(1) Resettlement baseline survey ( as the appendix of the report) (2) Land acquisition and resettlement schedule (3) Restoration and rehabilitation of production (4) Living standards of AP

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(5) Availability and utilization of the resettlement funds (6) Evaluation of operation and efficiency of the resettlement implementation institutions (7) Support to vulnerable group (8) Problem and recommendations (9) Follow-up on previous problems and mitigation actions (10) Abstract from page 3 to 5

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9. Project Implementation Plan

9.1 Work before the Implementation

1. Determine scope of impact According to the project design and arrangement, define the scope of resettlement impact by detailed design. Announce resettlement work to village committees concerned through meetings, and notify to the village committees.

2. Field survey of the resettlement area Related personnel are organized by the project implement institution and visit the affected areas, to check land and attachments, to determine the quality and quantity of affected assets and to include in detailed record.

3. Prepare resettlement plan as well as affirm budget Before the resettlement and construction project, the plan has to be updated based on detailed measurement survey, and to be approved by ADB. According to the survey, the project implementation agency and the resettlement implementation agency are responsible to update the land acquisition and resettlement plan as well as the budget, which will then be approved by the county government.

4. Sign the contract Under the coordination and guidance of the land and resources bureau, the project implementation agency and the resettlement managing office sign a land compensation contract with people concerned and pay all the money. The contract should be in accordance with the rate in the plan as well as the laws and regulations of the country, the local government and the ADB.

9.2 Work during the Implementation

1. Land-use permission The project implementation agency should make every effort to get all the required formalities in order to complete this process. The agency will apply for land-use permission step by step from land management departments. The qualification must be checked before paying compensation, acquiring land and personal properties.

2. Internal and external monitoring and evaluation Internal monitoring is the responsibility of the local agency, who submits a report to the ADB every half year. External monitoring is entrusted to an independent consoling agency, who gives a semi-annual report to the ADB each year. Its aim is to restore the income and keep the living standard of people concerned after land-acquisition. If the goal is not realized, strict measures will be taken.

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Table 9-1: Resettlement implementation timetable Institutions in No. Resettlement work Task Deadline Remark responsibility 1. Publicity Implementing unit 1.1 Resettlement Information Booklet 116 Sept 2008 agencies Resettlement plan distributed to 1.2 4 copies 1 town, 3 villages Oct. 2008 towns and villages Resettlement plan distributed to 1.3 ADB Oct. 2008 the website of ADB 2. DMS Update plan based on DMS; 2.1 evaluate loss of family land and Implementation units Oct. 2008 income Update plan based on DMS; 2.2 distribute to the affected villages Implementation units Dec. 2008 and towns 3. Resettlement plan and budget 3.1 Complete the red line survey Implementation units Oct. 2008 Approve resettlement plan and 3.2 County government Nov. 2008 budget 3.3 Approve compensation rate County government Nov. 2008 Land and Resources Upright stakes to mark 3.4 Bureau; the Nov, 2008 investigation line implementing agency 4. Compensation agreement 4.1 Country agreement 3 villages implementing agency May 2009 4.2 Enterprise& store agreement n.a. implementing agency implementing agency; 4.3 Family agreement 116 June 2009 country committee 5. Implementation capacity 5.1 County resettlement staff implementing agency Mar. 2009 5.2 Designate village representative implementing agency Mar. 2009 5.3 Staff training implementing agency Mar. 2009 5.4 Set up petition committee implementing agency Mar. 2009 6. Monitoring and evaluation 6.1 Baseline survey 10% APs External monitoring May. 2008 6.2 Establish internal monitoring RP implementing agency May 2009 6.3 Entrust external monitoring RP Project office May 2009 6.4 Internal monitoring report regularly implementing agency 2009 6.5 External monitoring report 6 month External monitoring Dec. 2009 Evaluation report (tracking 6.6 12 month External monitoring Dec. 2010 survey) implementing agency; 6.7 Resettlement complete report Dec 2009 External monitoring 7. Funds / compensation implementing agency July 2009 8 Land-acquisition implementing agency Aug. 2009

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9.3 Work after the Implementation

1. Continuing internal and external monitoring and evaluation 2. Filing all documents and records. After the resettlement work is completed, the agency in charge is required to prepare a resettlement completion report for the Project, which will be reviewed by IA before submitting it to the ADB.

9.4 Fund Disbursement

9.4.1 Principle

1. The land acquisition compensation and other expense will be paid for the affected groups and individuals by the PRO. 2. The PMO should establish financial supervision institution to make sure the resettlement plan can be carried out well and make sure the compensation can be paid in time.

Management Institution

1. The institutions taking charge of land acquisition compensation are: the PRO, the county government and village committee 2. The resettlement compensation will be paid from higher level to the lower level, all the institution should carry out financial settlement and auditing system, check and report the fund situation in time, provide the change and remedial measure for the accidental situation to make sure the fund can be paid and used in time.

Funds Flowing Progress

1. According to the compensation policy and compensation standard, the PRO will make the land acquisition compensation agreement with villager committee involved in the project land requisition. 2. The land compensation and resettlement subsidy, the PRO will pay for the village committee and villager group.

The specific fund flow can be seen in the “resettlement compensation fund flow of the small cities and town construction project of Youyu County” (see chapter ten Table 10.4-1)

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10. Resettlement Compensation Estimate

10.1 Basis

The basis of designing resettlement compensation estimate is shown in Chapter Five.

10.2 Methods of Estimate

10.2.1 Basic cost

1. Compensation for permanent land-acquisition It will be estimated according to the amount of the permanent land requisition and the compensation standard set by the resettlement plan. 2. Compensation for ground attachments It will be estimated according to the amount of all kinds of ground attachments and the compensation standard set by the resettlement plan.

10.2.2 Other expenses

1. Internal monitoring cost：it includes purchasing office equipment and facilities, preparing for the resettlement monitoring report, which is estimated 1.5% of the basic cost. 2. Practice and management cost of the resettlement plan: it is estimated 4.0% of the basic cost. 3. Skill-training cost of people affected Every person affected will get skill-training once, which is estimated 200 per person. 4. External monitoring cost It is estimated at 0.5% of the basic cost. 5. Cost for vulnerable group support It is estimated at 1% of the basic cost

10.2.3 Related taxation

1. Farmland reclamation fee According to Regulations for Agricultural Land Protection in Shanxi, farmland reclamation fee is estimated 8-12 times as the output value of the farmland in the recent three years. The standard of the farmland output concerned in the project is 840/mu; estimated as 8 times, the land farmland reclamation fee is 6,720/mu. 2. Land management fee According to Notice on Examining Land Management and Exploitation Charge in Shanxi Province, land management fee is estimated as 4.0% of the basic cost. 3. Farmland use taxation

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According to Shanxi Implementing Methods for Cultivated Land Acquisition Taxation, the farmland use taxation is estimated as 12/m2. 4. Forest Vegetation Recovery Payments According to relevant regulations in the Interim Regulations on Charging for Compensation of Land and Forest Acquisition in Shanxi, the project woodland payments will be charged at 12 yuan/ m2. 5. The Land Use Payments According to relevant regulations in the Notice on Land Use Payments Policy of Adjusting the New Construction Land，the new construction land use payments will be charged at 14 yuan/ m2.

10.2.4 Preparatory fund

Project preparatory fee is 8% of the sum of basic cost and other expenses, which is used to deal with other design and emergencies.

10.3 Estimates results

The total cost of the migrants resettlement in the project is ￥24.8116 million. Investment composition situation detailed in the following table:

Table 10.3-1 Estimate table of resettlement project cost Unit price Total price No. Project or cost name unit quantity (yuan) (10000 yuan) 1 Basic cost 1014.79 1.1 Permanent land compensation fee Mu 494 980.44 1.1.1 Farmland Mu 456 21000 956.88

1.1.2 Woodland Mu 38 6200 23.56

1.2 Compensation for Attachments 34.35 1.2.1 Transformer 1 20000 2.00 1.2.2 Wires M 700 170 11.90 1.2.3 Motor-pumped well 2 16000 3.20 1.2.4 Useful trees 1568 110 17.25 2 Other expenses 80.12 2.1 Internal monitoring cost 15.22 2.2 Practice and management cost of the 40.59 2.3 Skill-training cost 454 200 9.08 2.4 External monitoring cost 5.07 2.5 Cost for fragile people support 10.15 3 Related taxation 1202.47 3.1 Farmland reclamation fee Mu 456 6720 306.20

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3.2 Land management fee 40.59 3.3 Farmland use taxation M2 303773 12 364.53 3.4 Forest vegetation recovery payments M2 25333 12 30.40 3.5 The land use payments M2 329106 14 460.75 4 Preparatory fee 183.79 5 Total Project Resettlement Cost 2481.16

10.4 Fund Flow

The entire resettlement funds needed is raised by the local governments, its flow direction in the following table:

Table 10.4-1 Table on resettlement compensation fund flow of the small cities and town construction project of Youyu County

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Land County Town RO Villagers’ Affected resettlement

Resettlement Town RO Villagers’ Affected County RO

Plant County RO Town RO Villagers’ Affected

Compensation for resettlement committee

Related Related i Farmland County RO Land resources reclamation

Implementatio County RO Implementation n& management

Internal County RO Internal monitoring fee monitoring

External County RO External monitoring fee monitoring

Skill-trainin County RO Skill-training units Compensation County RO for fragile Town RO Villagers’ Weak

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Appendix 1 Resettlement Information Booklet

The preparatory work of small cities and towns development demonstration project in Youyu County financed by ADB loan has already started. The project locates in the new district and north of the Youyu County. The construction unit is Youyu County DRC.

1. Project Background and Significance

Youyu county, located in the northwest border of Shanxi province, with frequent war fares in the history, is a county mixed with multi ethnics, where various national culture exchanges with each other, forming rich cultural heritage. Youyu county rich in lush forests, ample light and healthy atmosphere is the national ecological demonstration zones and eco-tourism areas of Shanxi province, and the county plays the important role in linking the tourist routes from Datong city to Inner Mongolia. Traveling services and green food processing industry have become the main trend of the county development. However, as it is far away from central cities, and natural conditions for agricultural production are extremely poor, Youyu county is one of the state-level poor counties for its backward economic development. At present, the weak infrastructures in the county are hard to meet the requirements of the tourists.

The objective of the town construction project is to accelerate the pace of urban infrastructure construction, improve their living environment, enhance tourist reception capacity, and create the favorable external conditions for introducing outside investment, therefore, providing more job opportunities for local residents and promoting Youyu county `s economic development.

2. Project Components and Timetable

(1) Project Components: the components of project include four parts: district heating supply, water supply and drainage project, road construction project, and flood-control. (2) It will take five years to finish this project. The main schedule of the land acquisition and demolition of buildings is seen in table 1. Table 1 Schedule of Land Acquisition and Demolition of Buildings Components Time land acquisition and resettlement 2008. 6 -2008. 8 consultation Issuing announcement of resettlement 2009. 2 and land acquisition Paying compensation 2009. 7 Resettlement and Land Acquisition 2009. 8

3．Affected Scope

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The affected scope in the project includes Youfang village of Xingcheng town, Maguantun village, and Zhangjiadian three neighboring villages. The survey results show that the project only causes the permanent land acquisition and its land attachments suffer loss, not damaging houses, enterprises, individual traders and other special ancillary facilities, etc. Types and numbers of land acquisition and land attachments are seen table 2.

Table 2: Land Acquisitions Object Index No. Item Unit Youfang Maguan Zhangjiadian Total village Tun Village Permanent land 1 136 325 33 494 acquisition 1.1 cultivable Land Mu 136 287 33 456 1.2 Woodland Mu 0 38 0 38 2 Attachment 2.1 Transformer 1 —— —— 1 Agricultural 2.2 M 700 —— —— 700 transmission line 2.3 Machine Well 2 —— —— 2 2.4 Timber trees 306 1227 35 1568

All the data in the table is initial results of the survey done by the PO, and the final results are based on the measured data of Land and Resources Bureau.

4. Objective and Definitions of Resettlement Plan

Objective of Resettlement Plan

This Resettlement Plan is designed on the basis of the relevant laws and regulations of People’s Republic of China, Shanxi Province and Asian Development Bank’s polices. The objective of this plan is to make a resettlement and restoration programming for those affected people and make sure that they will get benefits from this project when it is finished, their standard of living will be improved or at least be recovered. This AP Resettlement Plan is a legal agreement on resettlement. According to this agreement, enough funds will be provided, coordination with the local government will be made well and the resettlement plan will be executed successfully.

Definition of Resettlement Terms

(1) Affected People

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In this project, the land and property expropriation will have adverse influences for those people who live and work on the ground. The affected people refer to the persons who have affected by the land expropriation and resettlement adverse influences. More details followed:

1. The people whose lands (including houses, the public facilities, agriculture, forestry, livestock farming, fishery and sideline lands), buildings (the private houses and attachments, the constructions of enterprises or the communal buildings), rights and interests or other properties are expropriated all or partial, permanent or temporary. 2. Those people who use the lands, buildings or properties mentioned above, or the people whose working or living places and habits are influenced. 3. The people whose standard of living is influenced by the land expropriation.

The affected people refer to those persons whose standard of living have or would be affected by the project; those persons whose houses, rights and interests, lands (including houses, farms and fields) or other movable and immovable properties have been expropriated permanent or temporary; those persons whose business, work or habitation and habits have influenced.

The affected people can be individuals or can be some enterprise legal persons or public institutions.

The definition of the affected people will not limit their law register, living permit and business; or will not limit their properties’ compensation. It includes all the affected people which legal rights or properties expropriation whether they are on the spot or not; and includes the people which living in some special places without residence permits.

All the affected people will be considered and recorded without considering their properties, lands and locations.

All the affected people should be compensated for improving or their resuming their living standard. The lost properties will be compensated according to the new price; it can not be reduced or discounted with any excuses. All the affected people should get benefits from the project’s affections. Besides the compensation for the lost properties, the affected people ought to get subsidies for their life’s restoration. Those affected people which doing businesses, reclaiming lands or building without properties, rights and residence permits should be treated without differences, comparing with those people with legal rights, properties and permits. They also have qualification to get property’s compensations and to resume their lives.

(2) Resettlement

The definition of resettlement mainly includes:

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1. Moving from living places; 2. Getting new jobs for those affected people; 3. Restoring or compensating for the affected lands, working places, trees and infrastructures. 4. Resuming the living standard and quality of life of those affected people which have been influenced by the land expropriation, resettlement or other projects. 5. Resuming or compensating for the affected individuals and public corporations. 6. Restoring the cultural and public properties.

(3) Restoration

The restoration refers to the affected people’s working and producing abilities’ recovery or the living standard’s maintenance or improvement.

The goal of the resettlement plan is provide a restoration program for affected people’s resettlement in order to compensate for their lost, to maintain or improve their living standard. And the affected resource producing, corporations (include: stores), public facilities and infrastructures will be resumed or improved.

5. Compensation

(1) Policy Basis The compensation standard for the land acquisition and resettlement is based on the relevant provisions of Shanxi Province’s Methods on Implementing Land Administration Law of People’s Republic of China, Interim Regulations on Charging for Compensation of Land and Forest Acquisition in Shanxi, Shanxi Province’s Methods on the Compensation Distribution of Collectively-owned Peasant’s Land(2005), Notice on the Opinions of Compensation of Building Land in Shanxi (It is the No. 193 document of Shanxi Land Management Bureau, 2007)

The compensation standard for the land attachments is determined after comprehensive measurement based on the relevant provisions of Shanxi Province’s Valuating Basis for Construction Project (2005).

(2) Compensation Standards a. The compensation standards for permanent land acquisition is seen in table 3.

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Table 3 Compensation Standards for Land Acquisitions

Annual Compens Resettlement Compensation Output Land Compensation ation for Village Type Subsidy Standard (yuan/ young (yuan/mu) mu) Crops Multiple Amount Multiple Amount Cultivable 840 9 7560 15 12600 840 21000 All land villages Woodlan 600 5 3000 2 1200 2000 6200 d b. The compensation standard for the land attachment is seen in table 4.

Table 4: Compensation Standard for Land Attachment No. Item Unit Compensation Price(yuan) 1 Agricultural Transformer 20000 2 Low-voltage lines M 170 3 Machine well 16000 4 Trees in the Field 110 c. The basic information and assisting measures to the weak groups are seen in Table 5, Table 6.

Table 5: Basic Information of Vulnerable Group No. of Type Distinguishing Standard households No. of people

Minimal needing household/ Family with annual income below the “Five Guarantees" 1 2 1300 yuan/person household/ Poor household The family with no father or Single-parent families mother(divorce/death),whose 1 2 children are under 14 years old The woman is the head of a family Woman headed 0 0 without prime male labor（18-55） The couple’s age are over 60/55 Elderly families 2 4 without prime labor（18-55） Family with one-grade and two- Families with disabled grade disabled people identified 1 4 people according to the national standard The family with no ability to work Families with serious because of disease or with 4 17 diseases long-term medical expense to pay Total 9 29

The assisting measures to the vulnerable groups include the one-time resettlement subsidies payment and sustaining help.

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One-time subsidies: In the RP, 101,500 yuan (1% of the total investment) shall be used as the supporting fund to the vulnerable groups. It is estimated that the fund will be directly sent to the hands of vulnerable groups with the cash payment with the standard of 3500 yuan/ person. The sustaining help measures are seen in table 6.

Table 6: Assisting Measures to the Poor and Vulnerable Groups Type Measures Standard Paying Ways

Minimal needing household Granting minimum living Cash, /the “Five Guarantees" 35yuan/month/ allowances and Daily household/ person financial aid necessities Poor household

Job placement, Single-parent families Duty-free, Cash (woman headed） Financial aid Cash, Basic old-age insurance, 35yuan/month/ Elderly families Daily Financial aid person necessities Job placement, Families with disabled Duty-free, Cash people Financial aid According to the Medical insurance, standards of Reimbursement, Families with serious Medical assistance, Medical Insurance Cash, diseases Help to be employed, Department and the Daily Financial aid Civil Affairs necessities Department

The standard and subsidies will be adjusted in accordance with policies, budget and number of people ultimately determined, which will be proclaimed before paying.

6. Measures to Affected Farmers

According to the actual situation and the outcome of the consultations, the measures to the farmers who is affected by permanent land acquisition are: (1) Farmers whose land is acquired is the affected people. (2) According to the relevant provisions of Shanxi Province’s Methods on the Compensation Distribution of Collectively-owned Peasant’s Land (2005), after consulting with the villagers and village committee, it shows that the villagers have the ability to make their living using the compensation. So the compensation for the land acquisition, resettlement and young plants will be given to the farmers affected with full payment to arrange their later livelihood. (3) Youyu county will take measures to help the affected people, such as providing job training, job opportunities, and priority to buy in the new district. The specific measures are seen in Resettlement Plan.

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7. Rights and Obligations of the AP

(1) Rights of the Affected People According to the RP, the affected people should get all compensation, rights and assistance. The affected people have the right to reflect and propose their views to the Project Resettlement Office at county, town and village levels on the specific content of the base amount of compensation, the compensation rate, compensation time and ways of payment, and the choice of re-employment training and so on. PRO at all levels must reply to the affected people’s complaint and questions within 7 days.

(2) Obligations of the Affected People a. actively cooperate with the implementation of the project b. It is forbidden to build any houses and facilities and so on within the scope of land acquisition, or the compensation will be canceled. c. Demolish the land attachments between the red and blue line prescribed in the project.

8. Appealing

The affected people can make an appeal for the problems appeared during the process of land acquisition and resettlement. The ways to appeal are as follows:

Stage 1: If they are not satisfied with resettlement or implementation, the affected people can give oral or written appeal to village committee. If it is the oral appeal, the village committee should write down the record. It should be answered in one week.

Stage 2: If the affected people are not pleased with decision in stage 1, they could put forward the appeal to the PRO at town level after they receive the reply. The county RO should settle down in one week.

Stage 3: If the affected people are not pleased with result in stage 2, they could put forward the appeal to the PRO at county level after they receive the reply. The PRO should settle down in one week.

Stage4: If the affected people are still not pleased with result in stage 3, they could put forward the appeal to the Resettlement Leading Groups at county level or to the Land Resource Bureau after they receive the reply form the PRO at county level to ask for the administrative arbitration. The administrative arbitration organization should make the arbitration within ten days.

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Table 7: Address Book for the Resettlement Institution

Person in No. Name Working Place Telephone charge

County’s The fourth floor in 1 Resettlement Li Feng The County Government 13903496008 Leading Group building

PRO at county Huang The third floor in the County 2 13934952777 level Qinghe Government building

Wang Yu Xingchen Town Government 13934429888 3 PRO at town level Wang Jinrui Xingchen Town Government 13903496796

Youfang Village Youfang Village Committee 4 Cui Tao 13934952476 Committee building Maguantun Village Maguantun Village Committee 5 Zhou Guixi 13152713393 Committee Office Zhangjiadian Zhangjiadian Village 6 Lu Yue 13834190568 Village Committee Committee Office

Stage 5: If the affected people are still not pleased with result made by the administrative arbitration organization, they can take civil action according to the civil law after they receive the arbitration decision.

The affected people can appeal to any part of the resettlement, including the compensation standard, etc.

The organizations which handle the appeals do not charge any fees.

Youyu County PRO August, 2008

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Appendix 2: Affected villages Meeting Minutes

A. Youfang Village, Xincheng Town of Youyu County

Time: 2008.4.16 9:00 a.m. Place: Villagers’ Committee of Youfang Village, Xincheng Town of Youyu County

List of Participants Name Gender Age Post Wang Jinrui Male 40 Vice Town mayor Cui Tao Male 40 Village Branch Secretary Wang Sheng Male 50 Village Director Xu Ming Male 56 Accountant Member of the Village Branch Wang Ping Male 43 Committee Member of the Village Branch Wang Risheng Male 43 Committee Zhang Qiaolan Female 39 Women’s Director Cui Laiyou Male 57 Villagers’ Deputy Yang Qiaoling Female 45 Villagers’ Deputy

Contents:

1. Basic conditions of village

Youfang Village is located in the western of Youyu County; villagers’ houses are all in the interior of the town; all the lands are located in the interior of city planning areas. It is a typical urbanized village. There are over 460 families in the village, more than 1500 people. It can be called a big village.

The public facilities of this village include: 80 collective commercial lodging houses (about 1600 ㎡ ), one gas station, one personal fund-raising kindergarten (300 people) and no village enterprises. The roads of the village are all up to standard of city; the roads in the uptown of the village are built by the incomes of lodging houses, gas station, villagers’ raise funds and subsidies. In future, the roads will be built gradually by county government according to town planning. Furthermore, there is water supply system, cable TV and six clinics. Because the location, the village utilizes the public facilities of the county, such as: business, trade, traffic, education and medical treatment etc. The expenses of the village includes: the wages of staff, the cost for building roads, the villagers’ allowances, the fee of sanitation, water fee, electricity’s charge, work establishments, the press and magazines and the reception cost and so on; it costs

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The income of the village includes: the benefits of lodging houses and gas station, transfer funds and some subsidies. About 100 thousand is the benefits of lodging houses and gas station; 30 thousand is transfer funds.

Most villagers do business, do a temporary job, provide service or rent out houses etc. rather than farming yields. And these incomes take around 90 percent of one family’s total earning. There are more than 200 capable people, most of them hired by vehicle serving, food processing, processing of stock raising products.

The farmlands are deficit in the village; the average land possession is only two mu each person and the lands are distributed to every family. The land adjustment can be accomplished until next round land contract. Because the local natural conditions are bad to farming, the farming benefits are very low. The agriculture can not change the undeveloped situation of village, so the villagers are all want to get chances to do other jobs.

The manage system of the village is quite perfect. The party member delegate meeting holds twice every year; the villagers’ represents meeting holds two to four times every year. It is usually hosted by village branch secretary. The topic of meeting is the agricultural policy of country, the adjustment of public lands, the organization of skill training etc. There are 15 villagers’ represents; all of them are elected by the villagers. The staffs of villagers’ committee are usually in office for three years. Present leads were elected in the winter of 2005.

2. Affection of the project and suggestions

Because the village’s location is in the interior edge of the county, the lands expropriations are almost occurred every year. This time, the new town lands expropriations affect over 30 families and 130 mu lands which are farmlands, woodlands and bottomlands. The affected families hope that the lands’ compensation can be got directly. When they get the money, they can do business or other jobs, such as: servicing, vehicle serving, food processing, processing of stock raising products. At present, they are worried about these cases: the compensation is low and the compensation delayed. So they suppose that the compensation is before the resettlement and the compensation should be according to the standard of public profiles and should respect personal suggestion. The compensation ought to be fair, honesty and open. All compensation should be attributed to the farmers directly by the migration office of the county; the accounts should be open and clear.

B. Maguan Village, Xincheng Town of Youyu County

108 Resettlement Plan

Time: 2008.4.16 3:00 p.m. Place: Villagers’ Committee of Maguan Village, Xincheng Town of Youyu County List of Participants: Name Gender Age Post

Wang Jinrui Male 40 Vice Town Mayor

Zhou Guixi Male 46 Village Branch Secretary

Hao Hu Male 48 Village Director

Chu Yubing Male 46 Accountant

Zhao Yufang Female 41 Women’s Director

Zhao Sanlan Female 39 Villagers’ Deputy

Li Ru Male 49 Villagers’ Deputy

Wang Yun Male 70 Villagers’ Deputy

Li Jianguo Male 47 Villagers’ Deputy

Contents:

1. Basic conditions of village

Maguan village is two kilometers away from the county and it abuts on the western beltway of new town. There are 130 families in the village, more than 530 people, which is a middling village.

The public facilities of the village include: one clinic, three canteens and without village enterprises. The roads of the village are built by villagers’ raise funds and subsidies. The stone roads to the planning new town were built by governmental funds. The road expansion according to urban standard was from 2006 and it will be accomplished next year. The villagers use the county’s public facilities to develop the business, trade, traffic, education and medical treating.

Because the village is located in the edge of the county, the business, trade, traffic, education and medical treating are all use the public facilities of county. The facilities are less than three kilometers from the village. The students can go to school by bus; the villagers’ minor illness can be treated in clinic or go to the hospital of the county.

The expenses of the village include: the wage of staff, the villagers’ allowance, sanitation fee, the press and magazines and the reception cost and so on; it costs nearly 44 thousand Yuan a year. It includes: four thousand for wage; 40 thousand for villagers’ allowance; about 10 thousand for sanitation, the press and magazines and the reception cost and other expenses.

109 Resettlement Plan

The income of the village include: transfer funds and subsidies, 30 thousand is transfer funds.

Most villagers do business, work a temporary job, service etc. rather than farming yields. And these incomes take around 70 percent of one family’s total earning. There are more than 40 capable people, most of them hired by food processing, processing of stock raising products.

The farmlands are abundant, each person can get around six mu and they are all distributed to each family. The adjustment of land can be accomplished until next round land contract. The villagers want to get chance to do other jobs because the benefits of agriculture are quite low.

The manage system of the village is quite perfect. The villagers’ represents meeting holds two to four times every year. It is usually hosted by village branch secretary. The topic of meeting is the agricultural policy of country, family planning, the adjustment of public lands, the organization of skill training etc. There are 20 villagers’ represents; all of them are elected by the villagers. The staffs of villagers’ committee are usually in office for three years. Present leads were elected in the winter of 2005.

2. Affection of the project and suggestions

Because the village’s location is in the interior edge of the county, the lands expropriations are almost occurred every year. This time, the new town lands expropriations affect over 60 families and 320 mu lands which are farmlands and woodlands. The affected families hope that the lands’ compensation can be got directly. When they get the money, they can do business or other jobs, such as: servicing, vehicle serving, food processing, processing of stock raising products. According to their experiences, they are worried about these cases: the compensation is low and the compensation delayed. So they suppose that the compensation is before the resettlement and the compensation should be according to the standard of public profiles and should respect personal suggestion. The compensation ought to be fair, honesty and open. All compensation should be attributed to the farmers directly by the migration office of the county; the accounts should be open and clear and ought to be supervised efficiently.

C. Zhangjiangdian Village, Xincheng Town of Youyu County

Time: 2008.4.17 9:00 a.m. Place: Villagers’ Committee of Zhangjiadian Village, Xincheng Town of Youyu County

110 Resettlement Plan

List of Participants: Name Gender Age Post Wang Jinrui Male 40 Vice Town Mayor Wu Xiong Male 40 Village Branch Secretary Zhao Biao Male 44 Village Director Liu Jianye Male 56 Accountant Liao Li Male 52 Member of the Village Branch Committee Shi Richang Male 42 Member of the Village Branch Committee Zhang Fang Female 31 Women’s Director Wu Qiang Male 36 Villagers’ Deputy

Contents:

1. Basic conditions of village

Zhangjiadian village is located in the northern of Youyu County, about 100 meters from the edge of the county. Villagers’ houses are all in the interior of the planning town. It will be a urbanized village. There are 90 families in the village, more than 360 people. It is a small village.

The public facilities of the village include: a private school, a clinic, three canteens and no village enterprises. The roads of the village are all up to standard of city; the roads in the uptown of the village are built by villagers’ raise funds and subsidies. In future, the roads will be built gradually by county government according to town planning.

Because the location, the village utilizes the public facilities of the county, such as: business, trade, traffic, education and medical treatment etc. These facilities are all less than one kilometer from county. The villagers can get there on foot.

The expenses of the village include: the wage of staff, the cost for roads, the villagers’ allowance, sanitation fee, and so on; it costs nearly 32 thousand Yuan a year. It includes: five thousand for wage; six thousand for roads; 11 thousand for villagers’ allowance; about 10 thousand for sanitation fee and other expenses.

The income of the village include: transfer funds and subsidies, 15 thousand is transfer funds.

Most villagers do business, work a temporary job, service and lodging houses etc. rather than farming yields. And these incomes take over 80 percent of one family’s

111 Resettlement Plan total earning. There are more than 60 capable people, most of them hired by vehicle serving, food processing, processing of stock raising products. The farmlands are deficit in the village; the average land possession is only two mu each person and the lands are distributed to every family. The land adjustment only can be accomplished until next round land contract. Because the farming benefits are very low, the villagers are all want to get chances to do other jobs.

The manage system of the village is quite perfect. The villagers’ represents meeting holds two to four times every year. It is usually hosted by village branch secretary. The topic of meeting is the public constructions, the adjustment of public lands, the organization of skill training etc. There are 10 villagers’ represents; all of them are elected by the villagers. The staffs of villagers’ committee are usually in office for three years. Present leads were elected in the winter of 2005.

2. Affection of the project and suggestions

Because the village’s location is in the interior edge of the county, the lands expropriations are almost occurred every year. This time, the flood-preventing project affects about 10 families and 30 mu lands which are all farmlands. Because the expropriated lands are quite small so the affection is very little for the agriculture of the county. The affected families hope that the lands’ compensation can be got directly. When they get the money, they can do business or other jobs, such as: servicing, vehicle serving, food processing, processing of stock raising products.

About the standard of compensation, the villagers suppose that the standard should be executed according to the oil mill of the village. All the compensation should be attributed to the farmers by PRO.

112 Resettlement Plan

Appendix 3 TOR for External Monitoring and Evaluation

A Objectives of M&E on Resettlement

1. According to the requirements of ADB’s Resettlement Policy, external monitoring and evaluation on resettlement of the subproject: Youyu New Town Development Subproject under Shanxi Provincial Small City Demonstration Project will be conducted during the land acquisition and resettlement implementation through checking the progress, fund and management of land acquisition and resettlement, follow-up evaluation on land acquisition and resettlement, analyzing and comparing the changes and restoration of production and living standards of those affected persons. While reports are submitted to ADB, SPMO and PPMO twice a year, information and suggestions are also provided for every department to make decision as a reference. Through external monitoring and evaluation, ADB and project departments in charge of the LAR program can get sufficient information about whether the land acquisition and resettlement are implemented timely and the requirements are met. Moreover, problems will be identified and suggestions for improvement will be given.

B Major Indicators of Monitoring and Evaluation

2. The major external monitoring and evaluation indicators are as follows: (1) M&E on Progress of Land Acquisition Implementation: i) progress of land acquisition; ii) progress of temporary land occupation; and iii) progress of project impacts; (2) M&E on Fund Disbursement and Usage: i) Fund disbursement; and ii) Fund usage (planning and actual fund usage). (3) M&E on Rehabilitation of APs’ Production and Livelihood: i) Production and living conditions of the APs before land acquisition; ii) Production and living conditions of the APs after land acquisition; iii) Analysis and evaluation of employment and living condition before and after the resettlement; and iv) Grievance mechanism and problem resolution. (4) M&E on capabilities of resettlement institution, public participation, grievance and appeal procedures. (5) M&E on delivery of compensation fund to the affected households for both land acquisition and house demolition; (6) M&E on housing plots allocation and new house construction for relocated households; (7) M&E on implementation of training programs and number of AP participation; (8) M&E on number of employment assigned to APs from the Project; (9) M&E on consultation and participation in the process of land acquisition and resettlement; (10) M&E on process of handling complaints and mitigation measures.

113 Resettlement Plan

C Technical Flow Chart

Figure 1 provides the technical flow chart of external monitoring and evaluation.

Figure 1 Technical Flow Chart of External Monitoring and Evaluation

114 Resettlement Plan

D External M&E Institutions

The external monitoring and evaluation will be undertaken by an independent external monitoring agency authorized by ADB and entrusted by Shanxi PMO.

E Organizations and Responsibilities

- SPMO will entrust an independent external monitoring and evaluation agency to conduct baseline survey, follow-up investigation, data collection, calculation and data analysis of data, regular report submission as well as the provision of opinions and advices.

- External monitoring and evaluation agency will establish an resettlement monitoring and evaluation group, which will be responsible for monitoring and evaluation of the land acquisition and resettlement, formulation of the outline for monitoring and evaluation, establishment of monitoring sites, monitoring of field survey and the data analysis, as well as preparation of land acquisition and resettlement monitoring and evaluation reports, according to ADB’s Involuntary Resettlement Policy.

- SPMO will coordinate with the resettlement monitoring and evaluation group concerned personnel, transportation and so on during the field monitoring and survey.

F Methods of M&E

- Monitoring and evaluation adopts a combined method of field investigation, calculation and analysis, and comprehensive assessment by experts. - Investigation will be conducted in the way of a combination of the key parts with the overall project. There should have an overall investigation of land acquisition and resettlement implementation progress, funds, institutions and management. Investigation should be carried out among affected households. - Random sampling and other methods will be adopted to make follow-up investigation for the typical sampling households. Sampling size will be: 100% of the affected households. - The overall investigation adopts the forms of table investigation, forum discussion, and inquiring of documents and archives. - Photos, audio and video records, and objects should be collected apart from the written materials.

G External Monitoring and Evaluation Report

115 Resettlement Plan

The external monitoring and evaluation agency will submit resettlement monitoring reports to the ADB, SPMO and YPMO every six months during resettlement implementation and annual evaluation reports as well within 2 years after the completion of resettlement implementation. Table 1 provides the resettlement monitoring and evaluation schedule.

Table 1 Schedule for Resettlement Monitoring and Evaluation No. Report of M&E Date 1 Baseline Survey of Socioeconomic Information 31 January, 2009 2 First Monitoring Report 31 December, 2009 3 Second Monitoring Report 30 June, 2010 4 First Annual Evaluation Report 31 December, 2010 5 Second Annual Evaluation Report 31 December, 2011

116 Appendix 4

Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Social Due Diligence Report: Shanxi Small Cities and Towns Development Demonstration Sector Project—Youyu County Subproject

Prepared by Youyu County Project Management Office (PMO)

Jan. 2011 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Abbreviation and Acronyms

RP Resettlement Plan APs Affected Persons ADB Asian Development Bank SDDR Social Due Diligence Report YCSCTCP Youyu County Small Cities and Towns Construction Project YCDRB Youyu County Development and Reform Bureau YCLRMB Youyu County Land Resource Management Bureau YCLSS Youyu County Labor and Social Security Bureau YCCB Youyu County Construction Bureau YBCA Youyu Bureau of Civil Affairs XTG Xincheng Town Government MGVC Maguantun Village Committee NRCR National Research Center of Resettlement of Hohai University LG Leading Group PEO Project Executive Office AAOV Annual Average Output Value LARO Land Acquisition and Resettlement Office VCRLT Resettlement Leading Team of Village Committee MEA Monitoring and Evaluation Agency TA Technical Assistance RIB Resettlement Information Booklet DMS Detailed Measurement Survey VCs Village Committees PLA Permanent Land Acquisition TLO Temporary Land Occupation LAR Land Acquisition and Resettlement HH Household PMO Project Management Office CH-S Centralized Heat-Supply mu Chinese land area unit of measure: 1 mu = 0.0667 ha PRC The People’s Republic of China

I Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Contents 1 PROJECT BACKGROUND ...... 1 1.1 Brief Description ...... 1 1.2 The Project Area ...... 2 1.3 Overview for the Resettlement Impact ...... 3 2 SOCIAL DUE DILIGENCE REPORT DRAFTING PROCESS ...... 5 2.1 Research Method ...... 5 2.2 Technical Route ...... 5 2.3 Investigation Process ...... 6 3 PROJECT IMPACTS ...... 8 3.1 Measures Taken to Decrease Impact ...... 8 3.2 Project Land Acquisition Impact ...... 9 4 SOCIAL AND ECONOMIC CONDITION INVESTIGATION ...... 10 4.1 Social-economic Profile of the Affected Villages...... 10 4.2 Sampling Survey Results of Affected Family ...... 10 4.2.1 Age Distribution ...... 10 4.2.2 Education Degree ...... 11 4.2.3 Houses and Living Conditions ...... 12 4.2.4 Main Domestic Property ...... 12 4.2.5 Production Types Condition ...... 12 4.2.6 Annual Family Income ...... 12 4.2.7 Annual Domestic Expenditure ...... 13 4.2.8 Average Per Capita Income and Expenditure ...... 14 5 LAWS AND COMPENSATION STANDARDS ...... 15 5.1 Main Laws and Policies for Resettlement ...... 15 5.2 Compensation Policy of Collective Land ...... 16 5.3 Entitlement Matrix ...... 16 6 RESETTLEMENT EFFECT ...... 17 7 COMPENSATION FUND ALLOCATION PROCEDURE ...... 18 8 PARTICIPATION AND CONSULTATION ...... 19 8.1 Public Participation Organized by Project Implementation Unit ...... 19 8.2 Public Participation Organized by Other Unit ...... 19 9 GRIEVANCE REDRESS MECHANISMS & EFFECTS ...... 21 9.1 Grievance Redress Mechanisms ...... 21 9.2 Grievance Redress Effects ...... 21 10 ORGANIZATIONAL STRUCTURE ...... 23 10.1 Implementation Organization ...... 23 10.2 Measures for Strengthening Institutional Capacity ...... 23 11 MONITORING ...... 24 11.1 External Independent Monitoring Institute ...... 24 11.2 Monitoring Procedure and Contents ...... 24 11.3 Monitoring Indicator ...... 25 12 CONCLUSIONS, PROBLEMS AND SUGGESTIONS ...... 26 12.1 Conclusions ...... 26

II Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

12.2 Existing Problems ...... 26 12.3 Following Actions ...... 27 Appendix 1-Law and Policies ...... 28 Land Administration Law of the People's Republic of China ...... 28 Implementation Regulations for the Land Administration Law of the PRC ...... 29 State Council Decision on Deepening Reform of Land Administration ...... 30 Guiding Opinions on Refining Compensation and Rehabilitation System for Land Acquisition ...... 31 Shanxi Province's Methods on the Compensation Distribution of Collectively-owned Peasant's Land ...... 32 ADB Policies on Involuntary Resettlement ...... 35

III Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Content of Tables and Charts

Chart 1-1 The Villagers’ Existing Cultivated Land after Expropriation ...... 1

Chart 1-2 The Compensate Certification of The Expropriated Peasants ...... 2

Chart 1-3Shuozhou Administrative Zoning ...... 2

Chart 2-1 Technical Map ...... 6

Table 2-1 Investigation Interview Institutions ...... 7

Table 2-2 This Project Displaced Persons List ...... 7

Table 3-1 Project Affect Village Group Situation List ...... Error! Bookmark not defined.

Table 3-2 Project Collection of Rural Collective Land Classification AreaError! Bookmark not defined.

Table 3-3 Project Land acquisition Affect Population ...... Error! Bookmark not defined.

Table 4-1 Maguantun Village Social Economic Conditions Statistics in 2011 ...... 10

Chart 4-1 Survey The Age Distribution Structure ...... 11

Chart 4-2 Survey Population Culture Degree Distribution ...... 11

Table 4-2 Sampling HHs Average Own Property ...... 12

Chart 4-3 Polling HHs with An Average Annual Income Situation ...... 13

Chart 4-4 Annual Expenditure Survey Family Situation ...... 14

Table 6-1 rights table ...... 16

Chart 8-1 The Flow Chart of Compensation Fund ...... Error! Bookmark not defined.

Chart 10-1 Procedure of Grievance and Appeal ...... 21

IV Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

1 PROJECT BACKGROUND

1.1 Brief Description

Centralized Heat-Supply is the inevitable trend of urbanization, Centralized Heat-Supply will replace the scattered and small boilers with low efficiency, for saving energy and protecting the environment. On the one hand, regional boiler rooms with little investment, short construction period, and its heating quantity can flexibly adapt to the needs of the thermal load; On the other hand, combining with urban renewal, Centralized Heat-Supply is not only more reasonable to save the old city heat-supply problem, but also is an effective way to quickly solve the heat-supply problem of new residential.

This heat-supply project is part of Youyu Country Small Cities and Towns Infrastructure Construction Project ( the YSCTICP) financed by ADB. As the construction of residential area in north zone of the county in 2009, starving for heat-supply to meet the resident need of warm, by self-financing, raising money from social enterprises, Youyu County Project Management Office (YCPMO) completed the boiler room construction in advance, setting 2 boilers with 58MW to answer for the heat-supply of housing and public facilities in 50,000 m2 in north zone , timely solved the heat-supply problem of local residents.

The Project site is located in 200 meters south of Maguantun Village. The project implemented by Shanxi Yulong Investment (group) Co.LTD , started in March 2009, completed on the October 3, start working on November 1. Land acquisition sum to 25 mu in Maguantun village of Xincheng town, and resettlement has been completed. The Land and Resources Bureau of Youyu County had carried out and completed the detailed measurement survey (DMS) in January,2009. Xincheng town signed the Land Acquisition Agreement with individuals in March 2009. Up to this survey, the land acquisition of small cities and towns infrastructure construction in Youyu has been accomplished, and the land acquisition compensation of this project had been paid to APs in April, 2009.

Chart 1-1 The Villagers’ Owned Cultivated Land after Land Acquisition

1 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Chart 1-2 The Compensation Certification of Displaced persons

1.2 The Project Area

(1)Shuozhou city locates in the northwest of Shanxi Province, longitude111°53′-113°34′, north latitude 39°05′-40°17′. adjacent to the Inner Mongolia Autonomous Region in northwest, nearly the Yanmen gate in Xinzhou city in south .North from Datong 129 km, south to Taiyuan 200 km, east to the Beijing 502 km. In 1989 Shuozhou is approved by the State Department, as a city dominant by the province, which is a new China's heavy chemical base for coal-fired power, a rising industrial city in north ecological garden, the China's biggest dairy cow base and an important ceramic production base in north.

By the end of 2009, the total area of 1.07 square kilometers, including twenty districts, four counties (Shuocheng district, Pinglu district, Shanyin county,Ying country,Youyu country, and Huairen country), totalled 73 towns (including street office), 1684 administrative villages and 154.4 million persons. GDP 561.3 billionyuan, 36452 yuan per person.

Chart 1-3Shuozhou Administrative Zone After 30 years of reform and opening up, Shuozhou’s economic has had great development, established a relatively complete industrial system combined by coal, electricity, milk as pillar

2 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank industries, with ceramic, food, machinery, building materials, chemical, textile, medicine, metallurgy and refractory etc, and formed a comprehensive development pattern leading by agriculture and husbandry .

(2) Youyu country located at Shanxi Province north-west frontier, geographic coordinate is between longitude 112 ° 07 '112-38 ° and latitude 39 ° 41'-, 40 ° 17 '. The county wide 4.56 km form east to west, 67.6 km longth from south to north, total land area are 1954km2. Until the end of 2009, the whole area includes 1 borough, 4 towns: Shahu tourism borough, new town, Youwei town, Weiyuan town, Yuanbaozi town, and 6 rural areas such as Niuxinbao town, Baitouli,Gaojiabao,Dingjiayao town, Yangqianhe and Lidayao .

Youyu county located at the northwest passage from Shanxi Province to Inner Mongolia’s, affected by the economic radiation of Datong,Shuozhou, Taiyuan, and Huhehaote.Youyu country belongs to Yanmenguan ecological animal husbandry industrial zone, is a county in the zone with great potential, and plays an important role in the construction of Yanmenguan ecological animal husbandry economy.

Economic operation acts well. In 2009 ,the county-wide realized GDP in 2162.89 million yuan, increased 15.95% than last year. Among them: the first industrial added value 205.58 million yuan, increased 2.13%; The second industrial added value 848.86 million yuan, increased 26.93%; The added value of the third industry 1108.45 million yuan, increased 9.49%. The structure weight of three industrials was 9.6:39.3:51.2. In GDP per person was 19381 yuan, increased 3050 yuan than last year, increased 15.30%.

Keep a low population growth. In 2009, the people of the whole country total to 111622. Among them: 50341 in urban, which accounts for 45% of the total population of the county, 61281 in rural, which accounts for 55% of the total population of the county. The natural population growth rate was 5.42%. The income of urban and rural residents sharply increased, life quality largely improved. Annual disposable income of urban residents was 10345.02 yuan per person, increased 1113.92 yuan than last year, increased 12.1%. Farmer annual income was 2802 yuan per person, increased 11.37%, 286 yuan than last year. The average income of workers On-the-job was 21365 yuan, increased 8.5%.

(3) Xincheng town is located in the middle of Youyu country, where is Youyu county area, 174 km2, includes 11 residents' committees and 29 villages. Economic market is flourishing, business services and public facilities are relatively perfect, which is the political, economic and cultural center.

By the end of 2009, the total population is 14200, in which, 4,000 is peasantry, 5550 is labour force; The total cultivated area is 67280mu; rural economic income 87.48 million yuan, including agricultural income 13.3 million yuan, animal husbandry income 32.8 yuan, industrial income 3.2 million yuan, transport income 31.88 million yuan and the income per person is 2915 yuan.

1.3 Overview for the Resettlement Impact

This heat-supply project is part of the YSCTICP financed by ADB. As the construction of residential area in north zone of the county in 2009, starving for heat-supply to meet the resident need of warm, by self-financing, raising money from Shanxi Yulong investment (group) Co.LTD,for more than 40,000,000 yuan, The land acquisition and resettlement(LAR) process is according to the requirements of ADB. Compared with the original RP, the factory site of the central heating boiler

3 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank house has changed. It was moved from the west of the outer ring road of the new district to the bottomland/unproductive land south of the Maguantun village 200 metres away, and the land acquired was changed from 33.6 mu to 25 mu.

The project involved permanent land acquisition of Maguantun village about 25 mu, and affected rural 8 households (HH), 35 persons. No minority was affected .

4 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

2 SOCIAL DUE DILIGENCE REPORT DRAFTING PROCESS

2.1 Research Method

(1) Questionnaire

To YSCTICP, questionnaire mainly aimed at the affected village and HHs, the content includes: land acquisition of project, living level of affected HHs change before and after land acquisition, resettlement of the affected HHs, participation of affected HHs and their satisfaction degree, etc.

(2) Interviews

Along with the questionnaire survey, deep interview is also carried on the affected HHs and resettlement institution to gain more detailed information. Interviewees included affected villages, resettlers from permanent land acquisition, construction units.

(3) Investigation method

Realize the recovering situation through fieldwork.

2.2 Technical Route

The technical route of research is shown in Chart 2-1.

(1) To establish Youyu country’s project team for small cities and towns construction, preparing the outline of social due diligence report.

(2) To design investigation outline of social due diligence report , questionnaire, typical HH, typical unit register card and sampling plan.

(3) To implement investigation (including the local social economic status, resettlement authorities, typical resettlement HH, affected villages).

(4) To establish database, through comparing analysis, accomplish social due diligence report.

5 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Chart 2-1 Technical Map

2.3 Investigation Process

In December 2010, YCPMO responsible for the social due diligence report. Investigation team implemented investigation on the resettlement influence and social economic influence of this project in January 2011.

In this investigation, resettlers are involved, the investigation team also heard advices from the village committees, villagers, land management department, labor and social security departments and related social organizations, carried out extensive consultation.

On January 23 morning in 2011, visited Youyu Country Development and Reform Bureau, interviewed the projects’ director the situation of project construction and resettlement.

On January 23 afternoon in 2011, investigation team visited Maguantun village, interviewed the village’s leader, to know the village’s basic economic conditions, and also carried on the questionnaire survey to the affected villager HHs, to know their before and present producing and living conditions.

On January 24 in 2011, investigation team visited the primary leaders for land acquisition problem of the land bureau, the construction bureau, the civil affairs bureau, the YuLong heat-supply company, the county labor and social security bureau of Xincheng town, collected related information.

6 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Table 2-1 Investigation Interview Institutions Persons No. Institution Telephone Responsible 1 Youyu Country Development and Reform Bureau Liu Baoping 13037048833 2 Youyu Country Construction Bureau Hao Wancheng 13037044899 3 Youyu Country Land Bureau Li Jiliang 13037042838 4 Youyu Country Labor and Social Security Bureau Huang Qinghe 8022308 5 Youyu Country Civil Affairs Bureau Gao Fuquan 8032234 6 Xincheng town Government Wang Yu 13934429888 7 Xincheng town Maguantun village committee Zhou Guixi 13152713393 Table 2-2 This Project Displaced Persons List No. Name Address Remarks 1 Yang Hehu Maguantun village , Xincheng town ,Youyu Country 2 Gao Ming Maguantun village , Xincheng town ,Youyu Country 3 Yuan Biao Maguantun village , Xincheng town ,Youyu Country 4 Li Jianguo Maguantun village , Xincheng town ,Youyu Country 5 Yang Qiaozi Maguantun village , Xincheng town ,Youyu Country 6 Chu Weibing Maguantun village , Xincheng town ,Youyu Country work outside 7 Yuan Bao Maguantun village , Xincheng town ,Youyu Country all the year work outside 8 Ma Hai Maguantun village , Xincheng town ,Youyu Country all the year

7 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

3 PROJECT IMPACTS

According to ADB’s requirements of Social Due Diligence Report (SDDR), the project owners organized the special investigation team of the project, verified the influence of land acquisition, and obtained the detailed information of project influence. Combining the methods of individual investigation with deep interview, the investigation contents include the quantity of land acquisition and the influence of social economy, the situation of the land acquisition affected people etc. During the investigation process, the investigate group surveyed and interviewed with the residents, rural collective economic organizations, Youyu Country land administration departments and related social organizations ,besides, the affected units and resettlements are involved in the investigation.

3.1 Measures Taken to Decrease Impact

In project planning and designing phase, in order to reduce the effects of project construction to the local social and economic, the design unit and the project owners had taken some effective measures:

A. In project planning stage, when conducting scheme optimization and choose, as far as possible consider reducing land acquisition and removal , minimize the project construction’s negative influence on the local society and economy, and elected it as scheme optimization crucial factor.

B. Optimum design, reasonable arrangement of engineering scheme, avoid land and house removal as far as possible.

For example, there is a scheme comparison in project planning and designing phase.

Site 1 is located in the south of Maguantun 200 meters. The site is far away from the county area, the terrain is relatively flat, burning emission less impact on the county's pollution. Rolling stock cannot go through the county, around the west loop direct boiler room can not only reduce the county's traffic flow, while reducing environmental pollution caused by coal for the county. Boiler room and the residential surrounding villages are less.

Site 2 is located in the northwest corner of the Maguantun village. Surrounding the site, there are not the water and electricity facilities. The northwest wind is the prevailing wind in the winter in Youyu county, the site is located in the northwest of the county, so there will be a threat to the environment for the county.

Considering two alternative land site number, cost, demolition and resettlement compensation factors to determine the impact smaller site 1.

In the stage of LAR action plans and implementation, when the land acquisition demolitions and resettlement inevitable, to reduce the construction influence to local area, the relevant government departments and the project owners have taken the following measures:

A. Strengthened the basic data collection, carried on thorough analysis to the local social economic status and future development, formulated the practical policies combined with the actual local, safeguarded no personnel suffered losses, to the persons who influenced by project construction.

8 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

B. In the immigration and relocation process, adopted various ways to actively encourage public participation, strengthened information disclosure, accepted the masses’ supervise.

C. Strengthen internal and external monitoring, established the efficient, unobstructed feedback mechanism and channel, shorten information processing cycle as far as possible, securitied several problems get solved timely in engineering implementation,

3.2 Project Land Acquisition Impact

25 mu dry land of Maguantun village of Xincheng township was acquired and 8 HHs were affected. There is No ethnic minority population and vulnerable groups was affected.

9 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

4 SOCIAL AND ECONOMIC CONDITION INVESTIGATION

In order to understand the project's influence and social economic conditions affect zone. In January 2011, investigation team had investigated the social economy and resettlement of the project affect zone. In addition, they had a sampling survey on the affected HHs’ social economic conditions, The investigation adopted questionnaire and interview with a combination way. Sampling involves 8 numbers of the rural HHs that directly influenced by the project(occupy the total influence number’s 75%).

4.1 Social-economic Profile of the Affected Villages

Table 4-1 Maguantun Village Social-economic Conditions Statistics in 2011 No Index Unit Maguantun village 1 the villagers group a 1 2 Total HHs number HHs 140 3 The HH register population person 505 3.1 including: labor person 200 engaged in the first industry persons 3.2 person 110 number 4 the village land area mu 4600

4.1 including：farmland mu 3570

4.2 forestland mu 630 5 Agricultural economy income 10000 yuan 326 5.1 In which: sell products income 10000 yuan 35 5.2 agricultural income 10000 yuan 76 5.3 animal husbandry income 10000 yuan 111 6 total allocated net income 10000 yuan 165 7 The total income of the rural residents 10000 yuan 164 8 The per capita income of rural residents yuan 3248

4.2 Sampling Survey Results of Affected Family

Sample survey of 6 HHs, 28 persons are all the Han nationality, including agricultural population 24 people, the non-agricultural population 4 people. In the population of survey ,the female population is 16 people, of the total population 57.14%; 18 Labors , of the total population 64.29%, 5 students, of the total population 17.86%.

4.2.1 Age Distribution

In survey of 6 HHs, 28 persons, there is 2 children under age 8, of the total population 7.14%, 1 person under 8~16 ages, of the total population 3.57%. Among 17~50 ages, 23 persons, of the total

10 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank population 82.15%; 1 person between 51~60 ages, of the total population 3.57%.While 1 person Over 60 ages, of the total population 3.57%. Age distribution structure (shown in Chart 4-1)

Chart 4-1 Age Distribution Structure of Typical people

4.2.2 Education Degree

Among the investigation’s 6 HHs, 28 persons, 5 illiteracy persons, of the total population 17.86%; 3 persons with the education of primary school , of the total population 10.71%; 13 persons of Junior high school, education, of the total population 46.43%; 3 persons with High school education, of the total population 10.71%; 4 persons of High school above education, the 14.29% of the total population. Education degree distribution shown in Chart 4-2.

Chart 4-2 Education Degree Distribution of Typical people

11 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

4.2.3 Houses and Living Conditions

For the typical immigrant families are all with 3.01 room houses, Per HH total building area is about 117m2, the average room area per capita is 25.07 m2, The structure of the demolished houses mainly for brick-concrete and brick-wooden.

4.2.4 Main Domestic Property

In investigation of affected families, bicycle, television, telephone’s popularization rate is higher, while cars, refrigerators of popularization rate is low, this is accord with the local production level condition. Family total property ownership of investigation and average HH property (see table 4-2.)

Table 4-2 Property Owned by Sampling HHs Standard of Property Item Unit Total Amount Owned by Per HH

bicycle a 8 133.3%

Tape-recorder platform 2 33.3% Washing machine platform 4 66.7% television set 7 116.7% computer set 3 50% refrigerator Set 2 33.3% Tractor set 4 66.7% Motorcycle a 5 83.3% car a 1 16.7% Telephone department 10 166.7%

4.2.5 Production Types Condition

The survey’s six immigrant families, agricultural management status in 2010 is : the main planting crops for corn, naked oats, yam, potatoes, a total of dry land 125 mu, In slack time, the primary Labors from home to work in the factory closely.

4.2.6 Annual Family Income

There isn’t village enterprise in the Maguantun village, the first industry plays the primary role in the village economy. According to statistics of 6 typical HHs in 2010 annual family income is 27098.31 yuan. Including agricultural average income for 12312.26 yuan, accounting for 45.44%; Animal husbandry average income for 3979.39 yuan, accounting for 14.68%; Working out for average income 10364.73 yuan, accounting for 38.25%; Other income for 441.93 yuan, accounting for 1.63%. The typical families annual total income situation shown in Chart 4-3.

12 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Chart 4-3 The Average Annual Income Situation of typical HHs

From the above analysis, we can see that the annual income per capital of the typical HHs is 5806.78 yuan in 2010. Agriculture as local farmer’s major source of income, and because of the affected village near the county, the local farmers have more work out opportunity, so the non-agricultural income is more.

4.2.7 Annual Domestic Expenditure

According to the typical six sample HHs statistics, the annual total expenditures per HH in 2010 was 12348.63yuan. In which, the expenditure of agricultural production, water and electricity, communications, education, medical, buy non-staple food, transportation, clothing, others respectively were 1471.43yuan, 181.34 yuan, 310.27yuan, 3828.57yuan, 1043.83yuan, 3536.43yuan, 211.43yuan, 342.76yuan, respectively accounting for the total, 11.92%, 2.51%, 31%, 8.45%, 28.64%, 1.71%, 11.52%, 2.78%. Sample families’ yearly expenditure situation is shown in Chart 4-4.

13 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Chart 4-4 Total Annual Expenditure Situation of typical HHs

From the above analysis, we can see that the typical family annual expenditure per capita is 2646.14 yuan in 2010.The conclusion is that the agricultural production costs, buy non-staple food and education expenditure, life medical expenditure for the main expenditure, water and electricity fees,, transportation expenses are smaller, this complies with local conditions of life on the whole.

4.2.8 Average Per Capita Income and Expenditure

Through the above analysis, we can see that the typical 6 immigration HHs annual net income per capital is 3160.64 yuan.

From the source of income and agricultural income, working out income are the major source of affected HHs. In expenditure, agricultural production costs, buy non-staple food and child education life proportion are bigger. Affected HHs annual land occupancy per capita of higher, this project land requisition land for 25 mu, before the project each has 5.36 mu land, after it became 4.46 mu land . Because Youyu Country located in alpine region, the land quality is not high, area yield low, so the influence of losing a few land to farmers is not big. Therefore, reasonable and effective use of land compensation fees and resettlement fees, seek viable income alternative can effectively guarantee resettlements income won't affected by land loss, and the affected people can benefit from the project.

14 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

5 LAWS AND COMPENSATION STANDARDS

5.1 Main Laws and Policies for Resettlement

This project resettlement policy mainly based on ADB and Chinese relevant laws and policies, including:

(1) ADB policies

 ADB’s Involuntary Resettlement Policy 1995

 ADB Public Participation Policy

 Gender and Resettlement Analysis

(2) The state laws and regulations

 Land Administration Law of the People's Republic of China (PRC). (established in June,1986, put into effect on 1 January 1987 and amended three separate times, in 1998 and 2004.)

 Implementation Regulations for the Land Administration Law of the PRC. (The 256th State Council Decree of the PRC, issued on 27 December 1998, in effect since 1 January 1999.)

 State Council Decision on Deepening Reform of Land Administration. (The 28th Decree of State Council, dated 21 October 2004.)

 Guiding Opinions on Refining Compensation and Rehabilitation System for Land Acquisition. (NO.238 Decree of Ministry of Land Resources dated 3 November 2004.)

(3) Shanxi policies

 Shanxi Province's Method on Implementing Land Administration Law of the PRC (approved during the 12th meeting of Standing Committee of the 9th National People's Congress on 26 September 1999.)

 Notice on the Opinions of Compensation of Building Land in Shanxi( Document No.193 document of Shanxi Land Management Bureau,2007.)

 Shanxi Province's Methods on the Compensation Distribution of Collectively-owned Peasant's Land (Dec1,2005)

(4) Shuozhou City policy

 Shuozhou City Displaced Person Employment Training and Improve the Social Security Work Implementing Procedures (applicable since Apr.22,2008)

The Detailed provisions of the laws and policies above are presented in the appendix.

15 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

5.2 Compensation Policy of Collective Land

The compensation fees for land acquisition include resettlement subsidiary, land compensation and compensation for standing crops.

According to Shanxi province’s Method on implementing Land Administration of the People's Republic of China ,the 27 article sets that ―for the farmland which are not basic farmland, the land compensation is 6 to 9 times of the AAOV"; the 28 article sets that " for the farmland which are not basic farmland, the resettlement subsidy is 4 to 5 times of the AAOV".

After the village committee meetings, the AAOV was set as 800 yuan per mu and this was agreed by the villagers. The land compensation was 9 times of AAOV and the resettlement subsidy was 5 times of AAOV. Totally, the compensation of the collective land is 11200 yuan/mu, which is 14 times of the AAOV.

The compensation standard of the standing crops in Maguantun village is 600 yuan/mu, which is consulted with the APs and finalized.

5.3 Entitlement Matrix

Table 5-1 Entitlement Matrix

Impact Compensation and Affects People Compensation Standards Categories Resettlement Policy

collective 35 persons 8  Received land land HHs of compensation and  compensation of the land: 11200 Maguantun resettlement subsidy yuan /mu. (rural village  got skill training and collective employment  Standing crops: 600 yuan/mu. land 25 mu) opportunities

16 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

6 RESETTLEMENT EFFECT

From the survey, all the acquired land is bottomland/unproductive land and the land output value is relatively low. The compensation fees of the land were all paid to the affected HHs, and the land in the village was not adjusted. Local cultivated land resource is rich, after land acquisition, each household still has 17 mu land and the per capita land holding is 4.46 mu. So the agricultural production activities are not significantly affected.

Moreover, the village is close to the downtown of the county, it is very easy for the local residents to take part-time jobs in the downtown, and non-agricultural income is higher.

Meanwhile, Xincheng township government offered some skill training for farmers, and also provided employment information and employment opportunities affected families. Some affected households have operated small business after the training with the compensation money. Others used the compensation money to improve the agricultural production conditions. Generally speaking, the APs are satisfied with the compensation and the income is restored and the external monitor will closely monitor this.

17 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

7 COMPENSATION FUND ALLOCATION PROCEDURE

Compensation funds of the project shall be paid for the demolished people or the Land and Resources

Bureau. In the process of implementation, according to compensation standards established by compensation policy of APs, the demolishers or Land and Resources Bureaus at the city/county level shall pay the compensation fees of LAR for influenced units or individuals in accordance with the agreements. Compensation fees of LAR of this project has been paid from April to May in 2009.

18 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

8 PARTICIPATION AND CONSULTATION

In the stage of project designing and planning, many consultations were taken by the YCDRB and YCLRMB to encourage the public participation. For example, social-economy survey of APs was carried out; village meeting with the representatives from APs was held; interview to the sample families was finished. All the results of PLA discussion and consultation were absorbed into the RAP. Moreover, RIB has been prepared and distributed to the APs on time, so the RAP was available to anyone who wanted to know more about this plan.

In the process of LAR implementation, special institution was established by the YCLRMB, XTG, MGVC and APs to guarantee the effective implementation of LAR. The consultation and negotiation with affected people continued as well. All the efforts were on reducing the negative impacts.

8.1 Public Participation Organized by Project Implementation Unit

Through baseline survey, 3 focus group discussions and 2 face-to–face interviews were held between Norember.2008 and April.2009, involving 63 persons. Affected HHs were asked to give full suggestion on project construction, scope of land acquisition, contract and compensation of land acquisition, and resettlement.

At the same time of asking APs for suggestions, project unit also invited some people not influenced to attend the forum to hear about their opinions and advices on APs resettlement of the project. Through various activities of public participation, residents in project area have a full realization of the significance of the project construction and the coming help measures. They hope the project construction can be carried out as soon as possible to achieve the obvious benefits of promoting local economic and social development.

8.2 Public Participation Organized by Other Unit

The investigation team interviewed the YCLRMB, YCCB, YBCA, YCLSS, XTG and MGVC, and carried out the survey in the affected area. It is found that during the alteration and optimization of the project design both executive agencies and design institutions paid much attention to public participation. They collected public opinions widely in the affected areas and modified the design program several times to minimize the effects of land acquisition and house demolition. Relevant agencies and village committees organized many times of villager congress discussion to carry out public participation, discuss compensation plans for land acquisition and how to develop public service by using compensation money.

19 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Table 9-1 Public Participation

Time Location Theme Participants

land and resources Notice of 2008.11 Maguantun Village bureau, PMO, village Project cadres, villager

Discussion of land land and resources

2008.12 Maguantun Village acquisition bureau, PMO, village

compensation standards cadres, APs

land and resources Land compensation 2009.3 Maguantun Village bureau, PMO, village agreement signed cadres, APs

Chart 9-1 Household interviews and seminars

20 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

9 GRIEVANCE REDRESS MECHANISMS & EFFCETS

9.1 Grievance Redress Mechanisms

If in the process of land acquisition occurred controversy, APs can appeal to the relevant agencies.

Grievance redress mechanisms as follows:

 Phase 1：If the APs had doubts about the work of LAR can appeal to the Land Resource Management Bureau, Xincheng town Government, Maguantun village Committee, the related staff working group will be answered face to face, and in consultation with the APs to solve;

 Phase 2：APs can appeal directly to government petition institution.

 Phase3 ：According to the ―Administrative Procedure Law of PRC‖, APs can appeal to administration with jurisdiction progressively, and go to arbitration. If APs are still unsatisfied with the arbitration decision, they can sue at law under civil procedures after receiving a decision notice.

The APs can sue on any aspect of the resettlement, include the compensation standard. The above grievance approaches, will notify the APs through meeting and other methods, so the APs can know they have the right of grievance. At the same time, the medium is used to enforce report. All aspects of advice and suggestion about the resettlement will be arrange to information clause, so resettlement institute at all levels can research and deal with timely. All kinds of institute will reiceive the grievance and complain of APs for free.

Chart 9-1 Procedure of Grievance and Appeal

9.2 Grievance Redress Effects

The investigation team realized that complains, during the implementation of land acquisition and demolition, are mostly centralized on some APs who have difficulties in daily life and are looking for the help from the governments on account of the lack of labor force or suffering serious diseases.

21 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Implementation units of land acquisition and demolition have solved the reflected problems timely. They explained applicable policies for the influenced and examined, distinguished and surveyed the group that had met difficulties during actual land acquisition, including families of patients for years or those who had lost work ability etc. They help and put out allowance for those who have actual difficulties by means of governments at the town level, village committees and civil administration department of the county.

22 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

10 ORGANIZATIONAL STRUCTURE

10.1 Implementation Organization

The departments responsible for planning, implementation, management, and monitoring of Youyu County Small Cities and Towns Construction Project (YCSCTCP) resettlement activities are:

 Youyu Land Resource Management Bureau (YCLRMB)

 Youyu Labor and Social Security Bureau (YCLSS)

 Xincheng Town Government (XTG)

 Maguantun Village Committee (MGVC)

 National Research Centre for Resettlement (NRCR) of Hohai University

YCLRMB is responsible for land acquisition, demolition, directing the implementation of resettlement, organizing and coordinating, examining the RP and internal monitoring.

YCLSS is responsible for Rural Social Security, organizing professional skills trainings, providing employment information and channels, and providing social assistance and development support for low-income HHs.

XTG is responsible for assisting in the investigation and confirmation of physical indicators, the work of LAR, and the resolution of resettlement problems.

MGVC is responsible for assisting in the investigation and confirmation of physical indicators, the work of LAR, the resolution of resettlement problems, and publishing land acquisition cases in villagers congress.

The NRCR is responsible for the external monitoring of land acquisition, resettlement and the implementation of the RP.

10.2 Measures for Strengthening Institutional Capacity

In order to strength resettlement institutional capacity, the measures are made as follows:

(1)Meet the demands of personnel allocation of resettlement institutions in priority;

(2)Staffs are organized to participate in professional training in order to make them familiar with resettlement policy on involuntary resettlement and improve their capacity;

(3)Develop and perfect the two-way channel of information feedback;

(4)Strengthen internal monitoring institutional system of responsibility to find the potential problems and establish venture early warning system.

23 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

11 MONITORING

According to ADB policy on involuntary resettlement and best practices for resettlement monitoring and evaluation, implementation of LAR activities will be monitored regularly to ensure all activities have proceeded in accordance with the provisions of the RP.

11.1 External Independent Monitoring Institute

The independent external M&E on the involuntary resettlement of the project is undertaken by the National Research Center for Resettlement (NRCR) of Hohai University. Independent monitoring institution will periodically monitor and evaluate the implementation of RAP, including:

 The functions of the resettlement network

 Land acquisition, resettlement progress and compensation

 APs' living standards and product condition

The purpose of independent monitoring is to provide an evaluation of LAR by an independent organization, and to review the overall implementation from a broader, long-term point of view. The Independent Monitoring Institution will follow the resettlement activities to evaluate whether the goals of resettlement are being achieved through observing

 the application of the laws of P.R.C. concerning resettlement;

 compliance with the involuntary resettlement principles of ADB; and

 Whether the APs’ living standards have been improved or at least maintained as a result of the project.

The independent monitoring agency will provide suggestions to the LAR implementation agency, so that any problems encountered in the implementation can be resolved in a timely manner.

11.2 Monitoring Procedure and Contents

(1) To compile working outline for M&E

(2) To develop software of resettlement M&E information system

(3) To prepare survey outline, questionnaire forms, and recording card of APs, sampling enterprises and institutions

(4) Sample design

According to the total impact of LAR, sample size will be 100%.

(5) To run basement survey

A basement survey is carried out on the HHs and the enterprises and institutions affected by land

24 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank acquisition and house demolition, so as to obtain basement data about their living standards and production condition (including living, business and income).

(6) To establish monitoring and evaluation information system

A monitoring and evaluation information system is established in which all the data are classified and stored in different database in computer for convenience to analysis and tracking monitoring.

(7) To conduct M&E survey

 Capacity evaluation to resettlement implementation institution: doing survey on its working ability and efficiency

 The progress , compensation standard, payment of resettlement

 Impact of LAR

 Follow-up survey and evaluate the income level of APs(less than 15% of the sample)

 Public consultation: participation in compiling RAP and APs' participation during implementation, monitoring effects of participation

 Appeal of APs: monitoring registration and disposal of APs' appeal

(8) To design M&E data and to establish database

(9) To conduct comparing analysis

(10) To compile M&E report based on monitoring plan

 In Jan. 2011, to establish the independent M&E work group, and prepared work plan.

 In Jan. 2011, do preparatory work for independent monitoring and evaluation, including: to prepared survey outline and forms, to establish a monitoring system, to clear task, to select monitoring points.

 In May. 2011, submit No.1 M&E report (Baseline survey report) ;

 In Feb. 2012, submit No.2 M&E report;

 In Feb. 2013, submit No.3 M&E report; (resettlement completion report)

11.3 Monitoring Indicator

 Socio-economic indicator: rural income per capita, GDP, employment rate

 Institution indicator: staff composition, staff quality, regulations, equipment, efficiency

 APs affected by land acquisition and occupation: compensation fund appropriative rate, the number of participating various of life security, Non-farm income share of total income, training(number, content, trainning funds, trainning effect) income changing rate, employment rate, satisfaction level to resettlement

 Public participation: number, content, impact

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12 CONCLUSIONS, PROBLEMS AND SUGGESTIONS

12.1 Conclusions

(1)RP:The Land and Resources Bureau of Youyu County had carried out and completed the detailed actual quantity survey in January,2009.Xincheng town had signed the Land Acquisition Agreement with individuals. Up to this survey, the land acquisition of small cities and towns infrastructure construction in Youyu has been accomplished, and the land acquisition compensation of this project had been appropriated to each person in April, 2009.

(2)Project effect:The project expropriates 25 mu rural collective land perpetually,8 HHs are influenced by it,and the minorities are not involved in this land acquisition demolition.

(3)Land acquisition: The survey finds that the standard of land acquisition compensation is carried out strictly according to the policy, the land compensation and young crops compensation has been paid to the emigrants. New county seat construction provides a large quantity of employment opportunities for them.

(4)Organizations: The project has clear related responsibility orgnizations as well as high personnel quality, and will fulfill related matters of the resettlement. Shanxi Yulong Investment Group Co, Ltd is the construction unit of this project, Youyu Construction Bureau is the executive body, and Youyu Land and Resources Bureau is the approval orgnization. Each unit performs its own function to promote the LAR being implemented smoothly.

(6)Public participation: During the preparation and implementation, the project units have organized public participation activities many times on the questions that those affected HHs concerned, such as the actual quantity survey, compensation standard, compensation payment and so on, answered their doubts, and made them fully understand the necessity and importance of this public welfare project, which laid a solid foundation for the resettlement. However, there were still some villagers that have not clear understandings on the demolition policy and compensation standard, the intensity of public participation still need to be enhanced.

(7)Appeal and grievance: The channels of complaining and appealing are unblocked, there are specific coordinators for those complaints, and emigrants know the appeal way when their rights are infringed. This survey finds that during the land acquisition demolition, some villagers have complaints on the compensation standard and distribution, but after the investigation of our team, we find the demolition compensation standard of the project units and demolition units is suitable with the relevant laws and regulations.

12.2 Existing Problems

The land acquisition demolition institutions, the relevant government departments and the landowners of this project have taken many measures for the resettlement, and achieved fine results, but there are still some problems existing:

26 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

(1)The procedure for the use of land is still being transacted

The pre-examination of the project used land has been replied, the relevant application materials have been handed over to the Ministry of Land and Resources of Shanxi, the construction project site selection submissions and the construction land planning permit have been replied, the land use certificate is being transacted, and is expected to be replied in the end of December, 2011.

(2)The employment of middle-aged workforce

After interviews and surveys, investigation team found the land acquisition has little influence on those young workforce, but the influence is serious on the 45-60 years old middle-aged workforce, especially on women. They can engage in agricultural productions during busy seasons, but have difficulties in looking for a job and increasing income during slack seasons. Although living close to the county which has many job opportunities, they are restricted to the professional skills, cultural qualities and ages, and have difficulties in re-employment.

(3)HHs have living difficulties

In the 8 affected HHs by the project, there are 2 that have difficulties in daily life because of children entering higher schools or serious diseases, although their living standard has not been under the poverty line.

12.3 Following Actions

(1) Enhance the guidance and assistance for the employment of 45-60 years old middle-aged workforce

The Maguantun Village affected by the project is close to the county, the relevant institutions of government will enhance communication and coordination with those enterprises in the county, give priority to those affected people by the project under the same conditions, especially the middle-aged workforce. Meanwhile, the government will give priority to the affected middle-aged workforce on the positions which require low professional skills such as sanitation and greening, to give them some non-agricultural income, and promote the recovery of their income level.

(2)Enhance the assistance for the poor families

The relevant institutions of government will give some help under the policy permission, such as the minimum living standard subsidy. The external agency will monitor this.

27 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Appendix 1-Law and Policies

Land Administration Law of the People's Republic of China

Land owned by peasant collectives that belongs lawfully to peasant collectives of a village shall be operated and managed by collective economic organizations of the village or by villagers’ committees; land already owned by different peasant collectives that belong to two or more different collective economic organizations in the village shall be operated and managed by the rural collective economic organizations in the village or by villagers’ groups; land already owned by peasant collectives of a township (town) shall be operated and managed by rural collective economic organizations of the township (town). (Article 10)

Land requisitioned shall be compensated for on the basis of its original purpose of use. (Article 47) Compensation for requisitioned cultivated land shall include compensation for land, resettlement subsidies, attachments and young crops on the requisitioned land. Compensation for requisition of cultivated land shall be six to ten times the average annual output value of the requisitioned land for three years preceding such requisition. Resettlement subsidies for requisition of cultivated land shall be calculated according to the agricultural population that needs to be rehabilitated. The agricultural population that needs to be rehabilitated shall be calculated by dividing the amount of requisitioned cultivated land by the average per capita cultivated land in the affected village prior to land acquisition. The standard of resettlement subsidy shall be four to six times the average annual output value of the requisitioned cultivated land for three years preceding such requisition. However, the highest resettlement subsidies for each hectare of the requisitioned cultivated land shall not exceed fifteen times its average annual output value for the three years preceding such requisition. (Article 47)

Standards of land compensation and resettlement subsidies for requisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for requisition of cultivated land.

Standards for compensation for attachments and young crops on the requisitioned land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government.

If land compensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of the Article are still insufficient to help the peasants who need economic rehabilitation to maintain their original living standards, the resettlement subsidies may be increased upon approval by people’s governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsidies shall not exceed 30 times the average annual output value of the requisitioned land for the three years preceding such requisition.

The State Council may, in light of the level of social and economic development and under special circumstances, raise the standards of land compensation and resettlement subsidies for requisition of cultivated land.

28 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Once a plan for compensation and resettlement subsidies for requisition land is decided on, the local people’s government concerned shall make it known to the general public and solicit comments and suggestions from the collective economic organizations, the land of which is requisitioned, and the peasants. (Article 48)

The rural collective economic organization, the land of which is requisitioned, shall accept supervision by making known to its members the income and expenses of the compensation received for land requisition. (Article 49)

The compensation and other charges paid to the unit for its land requisitioned is forbidden to be embezzled or misappropriated.

Local people’s governments at all levels shall support the rural collective economic organizations, the land of which is requisitioned, and the peasants in their efforts to engage in development or business operation or to start enterprises. (Article 50)

Where land owned by the State or by peasant collectives needs to be used temporarily for construction of projects or for geologic prospecting, the matter shall be subject to approval by the land administration departments of people’s governments at or above the county level. However, if the land to be temporarily used is located in the area covered by urban planning, the matter shall be subject to agreement by the urban planning administration department concerned before it is submitted for approval. The land user shall, depending on who owns the land and who has the land-use right, enter into a contract for the temporary use of the land with the land administration department concerned, or the rural collective economic organization, or the villagers committ ee and pay compensation for it in accordance with the provisions of the contract. The temporary land user shall use the land for purposes stipulated in the contract for temporary use of the land and may not build permanent structures on it. Generally, the period for temporary use of land shall not exceed two years. (Article 57)

For villagers, one HH shall have only one house site, the area of which may not exceed the standard set by provinces, autonomous regions and municipalities directly under the Central Government. (Article 62)

Villagers shall build residences in keeping with the township (town) overall plan for land utilization and shall be encouraged to use their original house sites or idle lots in the village.

Implementation Regulations for the Land Administration Law of the PRC

Actual construction projects required to determine overall land use planning of urban construction land within the state-owned construction land, according to the following procedure:

When demonstrate construction project feasibility study, construction project sites to review matters related to proposed construction projects by the land administrative departments, then put forward land use pre-trial report; feasibility study report for approval must be accompanied by the land administrative departments of land for construction projects issued by pre-trial report.

The construction unit holders of unit construction project approval documents related to the city and county people's government land administrative department of land for construction application, from the city and county people's government department in charge of land administration, land available for development programs, reported that the city and county

29 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank people's government for approval; be higher people's approval, should be reported to higher level government for approval.

After the program for approval, city and county people's government awarded land to the construction unit of ratification...... Allocate the use of state-owned land; the municipal or county people's government land administration departments to the land users in the subjective state-owned land allocation issued a written decision.

Land users should apply for land registration in accordance with law.

Actual construction projects required to determine the overall planning of land use of state-owned unused land, and permission to apply for examination and approval according to the following:

Less than one hectare,the county administrative domain, the county government for approval; administrative area in the city area, the city divided into districts by the government for approval.

State Council Decision on Deepening Reform of Land Administration

Third, improve the land acquisition compensation and resettlement regulations

（12）Improve the land acquisition compensation approach. Local people's governments above the county level must take practical measures to make the land of farmers living standards are not lowered because of land acquisition. According to the law , ensure payment of land compensation fees, resettlement fees and compensation for ground attachments and young crops full and timely . In accordance with current law pay land compensation fees and resettlement fees, the land of farmers can not maintain the original level of living, insufficient to pay for land acquisition and result in no social security costs to farmers, the provinces, autonomous regions and municipalities shall be approved increase the resettlement subsidy. Land compensation fees and resettlement subsidies reach the legal limit of the sum, not enough to make the land of farmers to maintain the original level of living, the local people's government paid use of state-owned land can be used to subsidize income. Provinces, autonomous regions and municipalities of the cities and counties to develop and publish uniform annual output value of land or district standards for Integrated Land, land compensation to do the same to the same price, the state key construction projects must be included in full cost estimates for land acquisition. Medium-sized water conservancy and hydropower project construction LAR compensation standards formulated by the State Council separately.

(13)Proper arrangements for landless farmers. Local people's governments above the county level shall formulate specific ways to make long-term livelihood of farmers whose land are protected. Have a stable income for the project, farmers can legally approved by the right to use land for construction. In the urban planning area, local people's governments shall be caused by land landless farmers into urban employment system, and establish a social security system; in urban planning area, the collection of land collectively owned by peasants, the local people's government in the administrative area is the land of farmers leaving farming land or arrange the necessary work accordingly; do not have the basic production and living conditions of landless peasants, resettlement should be in different places. Labor and social security departments should work together with the relevant departments as soon as the land of farmers for the establishment of employment training and social security system guidance.

Improve the land acquisition program. In the land acquisition process, to protect the collective

30 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank ownership of land of farmers and farmers the right to land contractual management rights.

(14)In land for approval according to law before, to intended use of land acquisition, location, the compensation standard, resettlement way to tell farmers whose land is expropriated; status of the proposed levy on the findings of the land subject to land has been requisitioned rural collective economic organizations and farmers recognized; really necessary, land and resources should be in accordance with the relevant provisions of the hearing. To speed up the establishment and improvement of the controversial land acquisition compensation and resettlement coordination and decision mechanisms, maintenance of land for landless farmers and the legitimate rights and interests. Approved land matters, except in special circumstances, should be publicized.

(15)Strengthen the supervision of the implementation process of land acquisition. Implementation of land requisition compensation and resettlement is not and shall not be imposed by force of land use. Provinces, autonomous regions and municipalities should be based on land compensation fee is mainly used for the principle of the farmers whose land was expropriated, the formulation of land compensation fees within the rural collective economic organizations in the method of distribution. By rural collective economic organizations should be compensation for land acquisition and distribution of income and expenditure, to announce the members of the collective economic organization and accept supervision. Agriculture, civil affairs departments should strengthen the rural collective economic organization of land compensation cost allocation and use of supervision.

Guiding Opinions on Refining Compensation and Rehabilitation System for Land Acquisition

Article 1 "On the land requisition compensation standards" provisions

(2)Multiples of annual output value of the determination of unity.

Land compensation and resettlement subsidy multiple of annual output value of unity, shall ensure that the land of farmers living standards are not lower the original principles established within the limits prescribed by law; unified annual output value by a multiple of the statutory calculation of land compensation and resettlement costs, can not make the land of farmers to maintain the original living standards, insufficient to pay for land for landless peasants caused the cost of social security, approved by the provincial government should improve the rate; land compensation fees and resettlement fees by 30 times the total, not enough to make the land of farmers to maintain the original level of living, overall arrangement by the local people's government, from the paid use of state-owned land set aside a certain percentage of the proceeds to provide subsidies. According to the law approved by the occupation of basic farmland, the land compensation by the local people's government announced compensation for the highest standards.

(3)Areas where conditions permit, the provincial land and resources can be developed together with relevant departments within provincial county (city) levy Integrated Land, reported that the provincial government announced the approval of the Executive, the implementation of land acquisition compensation. Integrated Land developed areas should be considered in class, the output value, land location, agricultural land grade, cultivated land per capita, land supply and demand, local economic development and subsistence allowances for urban residents and other factors.

Article 2 "The land of farmers on resettlement approaches," states:

(5)Agricultural production resettlement. Collection of farmers outside the urban planning of collective

31 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank land, should be through the use of rural collective mobile land, the voluntary surrender of the contract contracted farmers, the contracted land transfer and land development such as additional land, first of all the land of farmers it is necessary to make farming land , continue to engage in agricultural production.

(6)Re-career placement. Should actively create conditions for the land of farmers to provide free labor skill training and arrange the appropriate jobs. Under the same conditions, the unit absorbed the land of farmers should be given priority employment. Collection of collective farmers in the urban planning area of land due to land acquisition should be a result of landless farmers into urban employment system, and establish a social security system.

(7)Shareholder dividends placement. Long-term stable income for the project site under a voluntary basis in the farmers whose land was expropriated rural collective economic organizations, in consultation with the land, land compensation and resettlement costs can be shares, or the approved construction land use rights shares. Rural collective economic organizations and farmers by way of contract with preferred access to benefits.

(8)Off-site resettlement. This region does not result as a result of land to the peasants without the provision of basic production and living conditions, in the full solicitation is land of rural collective economic organizations and farmers under the premise of the views, the unified organization by the Government, the implementation of off-site resettlement.

Article 3 "On land acquisition procedures" provides:

(9)Inform the land situation. Approval in accordance with the law before the land acquisition, local land and resources should the proposed use of land, location, compensation standards, resettlement and other ways, in writing, inform the land of rural collective economic organizations and farmers. In this post, where land has been requisitioned rural collective economic organizations and farmers on the land grab in the levy to be planted, plant crops, and get the building's ground attachments and young crops, land shall not be compensated.

(10)Confirm the land survey. Local land and resources should the proposed levy of land ownership, land type, area and ownership of ground attachments, type, quantity, etc. status of survey on land acquisition should be the rural collective economic organizations, farmers and property rights common ground attachments confirmation.

(11)Organization land hearing. Approval in accordance with the law before the land acquisition, local land and resources shall inform the land acquisition of rural collective economic organizations and farmers, the proposed levy on the land compensation standard, resettlement approaches have the right to request a hearing. Party applying for a hearing, shall "provisions of Land and Resources Hearing" with the procedure and the relevant requirements of the hearing.

Shanxi Province's Methods on the Compensation Distribution of Collectively-owned Peasant's Land

Law shall apply to the acquisition of collective land owned by peasants, the distribution use and manangement of land compensation fee applicate of this approach. (Article 2)

Land acquisition and land compensation is to be farmers, the rural collective economic organizations and owners of compensation for ground appendixes. Land acquisition compensation include land

32 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank compensation fees, resettlement fees and compensation for ground attachments and young crops compensation fees.

The term refers to farmers whose land legally acquired the right to land contractual management of rural farmers. (Article 3)

The distribution and use of land compensation fee should adhere to an open, fair and impartial principle.

The distribution and use of land compensation fee should make sure that women and men enjoy equal rights, any organization or individual shall not deprivate, against its legally entitled to the land requisition compensation and benefits for the reason of unmarried women, married, divorced, widowed and other so on,. (Article 4)

The people's governments above the county level on agriculture, agricultural economics and other departments shall strengthen the supervision and management of distribution.of the rural collective economic organization’s land acquisition compensation fee. (Article 5)

According to the law, before the land approved, the people's governments above the county level of land and resources department should notice the landless farmers, rural collective economic organizations and owners of ground attachments about the proposed lands’ use, location, area, compensation standards, resettlement approaches and so on, to in writing.

The people's governments above the county level of land and resources department should survey on the proposed levy of land ownership, land type, area and ownership of ground attachments, type, quantity, etc. The status of land acquisition should be confirm with farmers, the rural collective economic organizations and the owners of ground attachment, objects on the relevant materials of their common recognition must be submitted for approval as land content. Approved by the law of the land matters, should be publicized. (Article 6)

Accordance to the law, before the land acquisition,approved,the local land and resources department shall inform land farmers, rural collective economic organizations and ground attachments owners, they have the right to request a hearing on the proposed land compensation standard, resettlement approaches. Party requests a hearing shall be informed within 5 working days to apply for a hearing. The Land and resources department should organize a hearing accordance with relevant provisions after receiving a hearing within 20 days from the date of application . (Article 7)

Requisition of rural land, they must be settling the land requisition procedures and pay compensation fees in full timely .

Not unit or individual may withhold or misappropriate, owed land compensation fee. (Article 8)

Provincial People's Government approved a unified annual output value standard on the development of various districts of the city and county land or district Integrated land, it shall give full consideration to the standard of living of local farmers. If the paid land compensation fees and resettlement fees, are insufficient and result in no social security costs to farmers that for land acquisition, should increase resettlement subsidies, ensuring the interest of the of protection farmers.

Land units should strictly enforce the land acquisition compensation standards.that developde by the provincial government. (Article 9)

33 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Land requisition Units should pay the acquisition compensation fees to the land acquisition farmers fully within 3 months from the date of land requisition compensation and resettlement programs approved .after the farmers’agreement, may also contract with landless farmers on compensation fees paid in installments.

Before the Land compensation costs being not in full the land and resources department shall not issue construction land of ratification, shall not apply to procedures for the land requisition unit ,shall not impose the use of land, the project shall not commence construction, landless farmers and rural collective economic organizations shall be entitled to continue to use the land . (Article 10)

Land compensation fee is mainly used for farmers whose land was requisited. Rural collective economic organizations shall not occupied the land compensation fee that entitiled to landledd farmers legally in any name,shall not divide the old families, new families, daughter HHs illegally. (Article 11)

All acquisited land, while the rural collective economic organization formed revoked, the land compensation fees’80% allocated to landless farmers; the remaining 20% land allocated to members who enjoy the right to land contract of the collective economic organizations equally after the compensation scheme finished,

All acquisited land, the land compensation fee of not less than 80% of the proportion paid to farmers whose land was collected, and the rest left to the village collective economic organization. (Article 12)

The acquisited lands that has the right to HH , its land compensation and resettlement fee, of not less than 80% of the proportion paid to farmers whose land was collected; the remaining 20% left to the village collective economic organization.

The acquisited lands that has not the right to HH when its land compensation and resettlement fees to the ratio of not less than 80% paid on the average, the land compensation and resettlement scheme has subsidied , the collective economic organizations shall enjoy the right to land contractual management members; leave the rest to the rural collective economic organization.(Article 13)

Compensation for ground attachments and young crops compensation fee should be paid to all owners of ground attachments and green crops. (Article 14)

Resettlement fees paid according to different resettlement approaches, by land units or other units, as resettlement of landless peasants, paid to the units responsible for resettlement; do not need unified resettlement, should be fully paid to landless peasants. (Article 15)

Rural collective economic organizations shall establish compensation for land requisition account, special accounts, accounting, earmarked land compensation fee should be allocated according to use. (Article 16)

The land compensation fees Left to the rural collective economic organizations belong to the collective assets, should be included in the Community Chest reserve management, and for the development of production and increase accumulation, collective welfare, public welfare, etc, shall not be used to pay compensation of cadres, not be used for entertainment costs and other non-productive expenditure, shall not be used to settle debts.

The using program of land compensation that left to rural collective economic organizations shall be approved by the rural collective economic organizations or two-thirds members of assembly members

34 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank representing agreed.The condition of Income and expenditure shall be promptly published and accept their supervision. (Article 17)

ADB Policies on Involuntary Resettlement

Involuntary resettlement should be an important consideration in project identification. The three important elements of involuntary resettlement are (i) compensation for lost assets and loss of livelihood and income, (ii) assistance for relocation including provision of relocation sites with appropriate facilities and services, and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. Some or all of these elements may be present in projects involving involuntary resettlement. For any project that requires relocating people, resettlement should be an integral part of project design and should be dealt with from the earliest stages of the project cycle, taking into account the following basic principles:

 Involuntary resettlement should be avoided where feasible.

 Where population displacement is unavoidable, it should be minimized by exploring all viable project options.

 If individuals or a community must lose their land, means of livelihood, social support systems, or way of life in order that a project might proceed, they should be compensated and assisted so that their economic and social future will generally be at least as favorable with the project as without it. Appropriate land, housing, infrastructure, and other compensation, comparable to the without project situation, should be provided to the adversely affected population, including indigenous groups, ethnic minorities, and pastoralists who may have usufruct or customary rights to the land or other resources taken for the project.

 Any involuntary resettlement should, as far as possible, be conceived and executed as a part of a development project or program and RPs should be prepared with appropriate timebound actions and budgets. Resettlers should be provided sufficient resources and opportunities to reestablish their homes and livelihoods as soon as possible.

 The affected people should be fully informed and closely consulted on resettlement and compensation options. Where adversely affected people are particularly vulnerable, resettlement and compensation decisions should be preceded by a social preparation phase to build up the capacity of the vulnerable people to deal with the issues.

 Appropriate patterns of social organization should be promoted, and existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible. Resettlers should be integrated economically and socially into host communities so that adverse impacts on host communities are minimized. One of the effective ways of achieving this integration may be by extending development benefits to host communities.

 The absence of formal legal title to land by some affected groups should not be a bar to compensation. Affected persons(APs) entitled to compensation and rehabilitation should be identified and recorded as early as possible, preferably at the project identification stage, in order to prevent an influx of illegal encroachers, squatters, and other nonresidents who wish

35 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

to take advantage of such benefits. Particular attention should be paid to the needs of the poorest APs including those without legal title to assets, female-headed HHs and other vulnerable groups, such as indigenous peoples, and appropriate assistance provided to help them improve their status.

 The full costs of resettlement and compensation, including the costs of social preparation and livelihood programs as well as theincremental benefits over the "without project" situation, should be included in the presentation of Project costs and benefits.

 To better assure timely availability of required resources and to ensure compliance with involuntary resettlement procedures during implementation, eligible costs of resettlement and compensation may be considered for inclusion in Bank loan financing for the project, if requested.

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