Resettlement Policy Framework

RP1662 REV

World Bank-financed Poverty Alleviation and

Public Disclosure Authorized Agriculture Development Demonstration in Poor Areas Project

Public Disclosure Authorized

Resettlement Policy Framework

Public Disclosure Authorized

China State Council Leading Group for Poverty Alleviation and Development Foreign Capital Project Management Center

Public Disclosure Authorized November 2014

Table of Contents

Executive Summary ...... 1 A. Project Overview, Principles and Rationale for a Resettlement Policy Framework...... 4 B. Framework for Land Acquisition ...... 7 B1. Objectives and Relevant Terms of the Policy Framework ...... 7 B2. Preparation and Approval of Resettlement Action Plans ...... 8 B3. Institutional and Legal Framework ...... 11 B4. Implementation Process...... 13 B6. Budget Arrangements...... 14 B6. Public Participation and Information Publication ...... 14 C. 4. Land Transfers and Use of Land as Shares ...... 15 D. Complaint Mechanism ...... 16 E. Monitoring and Evaluation ...... 17 Appendix I Laws and Policies Related on Land Acquisition ...... 19 Appendix II Compensation Principles for the Project Areas ...... 27 Appendix III Laws and Policies on Social Security ...... 29 Appendix IV Entitlement Matrix ...... 36 Appendix V Summary of Land Occupied for Market Construction ...... 41

Executive Summary

1. Process

This Resettlement Policy Framework (RPF) is based on the findings of a full social assessment that bas been undertaken during project preparation by an independent and qualified consulting firm, with extensive community consultation. The draft document was made available to the public locally and the final document has been publicly disclosed.

2. Purpose

The World-Bank financed Poverty Alleviation and Agriculture Development Demonstration in Poor Areas Project aims to develop and demonstrate rural value chain models in selected destitute areas that promote equitable organizational arrangements, participation, and the sustainable increase of income of poor households in 547 administrative villages in Gansu, Sichuan and Guizhou provinces. This RPF is established for the following purposes:

Under Component I, the project will finance agricultural cooperative investment funds. Cooperatives are likely to use part of this investment to expand their farming operations in the form of plantations or breeding farms (production bases). The RPF confirms the participatory process and cooperative formalization process, which have been instituted in the project implementation manual and will serve to ensure fair and transparent land arrangements. It also provides additional detail to guide implementation of these processes.

Under Component 2 (public infrastructure and services), the project will finance the construction of public markets and access roads to production areas. At the time of appraisal, no instance of civil works requiring land acquisition had been identified. However, as most locations for markets have not been confirmed at the time of appraisal (Appendix V), and none of the locations for access roads have been confirmed, it cannot be ruled out that some of this infrastructure would require land acquisition. The World Bank Policy on Involuntary Resettlement OP 4.12 is therefore applicable. This RPF is produced to ensure full compensation at replacement cost of all affected households.

When access roads are built on land currently used as farmland, most land is likely to be obtained through voluntary adjustments within the project villages. The RPF requests coordination and agreement by the villagers, and documentation of these cases. It will also guide the implementation of voluntary exchanges.

The project will take place in an environment where the government is implementing ecological resettlement operations. Successful cooperative development can only take place in stable communities. The RPF confirms that the project villages will

neither be departure locations nor arrival locations for households in on-going ecological resettlement programs.

3. Compensation for the Construction of Rural Infrastructure and Other Civil Works

In accordance with OP 4.12, instances requiring land acquisition have been avoided during project preparation and will continue to be avoided where feasible, or minimized, exploring all viable alternative project designs.

In instances where land acquisition is unavoidable, affected persons would be diverse. Although most of them will be farmer households affected on farmland, it may not be precluded that some households might be urban households, or some land might be residential land, or the construction of some markets might affect occasionally houses and lead to house demolition. As a result, the RPF is a generic document covering all these instances.

July 2011 (project identification) is the cut-off date established to determine whether land for future project-funded infrastructure or facilities are covered under the present RPF. Counties that have acquired land after July 2011 have produced a due diligence report prior to appraisal to confirm absence of land acquisition. Information included in these reports will be monitored during project implementation.

4. Land Transfers and Use of Land as Shares for Agricultural Production

In accordance with OP 4.12, any instance of land transfer or use of land as share in a joint cooperative investment must be fully voluntary. Households will therefore retain the possibility not to join or to opt out after the end of a contract period. In cooperatives, since the project provides an investment fund to cooperatives in a grant form, there should be no requirement that households are requested to pool their land into the cooperative’s capital stock (“land shares”) as a condition to become a cooperative member. Should the use of land as shares be the preferred option for local members, related rights to dividends would be open in a transparent manner. Land transfers are now requested by the national legal framework to take the form of a contract with a clear time limit, and with payments based on the local land market. This process is starting in the project areas, and this RPF guides full use of this legal framework.

In order to ensure that the project is implemented in accordance with these principles, project supported cooperatives are required to go through a participatory process of formalization of new or existing cooperatives that includes a mandatory step on land arrangements. Participants will receive prior information and training on land management in cooperatives, and they will receive individual land transfer contracts in the event of land transfer.

Land transfers and land share schemes for a production base undertaken by a project-supported company or organization other than a cooperative will be subject to the same requirement.

5. Complaint Mechanism

A complaint mechanism covering all situations listed in this Resettlement Policy Framework is set up. This mechanism will start at the administrative village or township level. The government offices in charge will be resettlement offices, or another relevant office that has been designated for the project.

6. Responsibilities and Budget

County PMOs assume overall responsibility for the implementation of this RPF. They ensure that township project implementation units and village committees undertake the consultations and negotiations that are needed to prevent any unnecessary land acquisition under the project. They will assume all expenses to cover planning in relation to this framework and any potential need for compensation.

The Provincial Project Management Offices, under the guidance of the national Project Coordination Office, take overall responsibility for preparation and appraisal of abbreviated Resettlement Action Plans, and of full Resettlement Action Plans in the event that such plans are needed, in close cooperation with county PMOs, and for their submission to the World Bank.

7. Monitoring and Evaluation

International monitoring is undertaken, with quarterly reports, to cover all aspects of this RPF including the complaints mechanism. An independent external evaluation of this framework will be undertaken twice during project implementation. In the event a full Resettlement Action Plan is needed, specific external and evaluation of this plan will take place.

A. Project Overview, Principles and Rationale for a Resettlement Policy Framework

1. The World-Bank financed Poverty Alleviation and Agriculture Development Demonstration in Poor Areas Project aims to develop and demonstrate rural value chain models in selected destitute areas that promote equitable organizational arrangements, participation, and the sustainable increase of income of poor households. The project covers Sichuan Province, Guizhou Province and Gansu Province in the nationally designated contiguous poverty-stricken areas of Wumeng Mountain and Liupan Mountain, including 10 cities (autonomous prefectures), 27 counties, 547 administrative villages, 3940 natural villages in total, totally covering 243,800 households. It will benefit 929,200 rural people, of which 357,000 are registered as poor and 243,000 belong to ethnic minorities. Average poverty incidence in the project areas is assessed to reach 44%, and average rural per capita net income is CNY 3,510 per year.

Table 1. Project Areas City (Autonomous Area Province County (District) Prefecture)

Bijie City Dafang, Zhijin Guizhou Zunyi City Chishui City, Xishui, Tongzi

Wumeng Luzhou City Gulin, Xuyong Mountains Sichuan Liangshan Yi Autonomous Zhaojue, Meigu, Jinyang, Butuo Prefecture

Tianshui City Zhangjiachuan

Wuwei City Gulang

Tongwei, Longxi, Min County, Weiyuan, Dingxi City Lintao, Anding District

Liupan Huan County, Huachi, Zhengning, Gansu Qingyang City Mountains Heshui

Linxia Hui Autonomous Dongxiang, Yongjing Prefecture

Pingliang City Zhuanglang, Jingning

Total 3 10 27

2. The Project includes four components:

Component 1: Integrated Value Chain Development. The objective of this component is to support the improvement of value chains for selected agricultural products with local competitive advantage (key commodities), establish new farmer cooperatives or strengthen existing cooperatives or other producer/ community cooperation arrangements to become effective business entities, and strengthen forward and backward marketing linkages. Specific activities include: (a) Cooperative Establishment and Development, (b) Establishment of Cooperative Development Funds, (c) Public Private Partnerships for training and technical services for cooperatives, communities, and farmer households groups that will be delivered through qualified agricultural enterprises.

Component 2: Public Infrastructure and Services including (a) the construction of production road infrastructure, irrigation infrastructure and land leveling, information infrastructure and equipment, and public market facilities, (b) public services, such as food safety testing and control, and public extension and training, and (c) advisory services for cooperatives through cooperative facilitators.

Component 3: Poverty Reduction in Adjacent Destitute Areas - Training and Learning analytical studies and development of guidelines.

Component 4: Project Management, Monitoring and Evaluation.

3. The construction period of this Project is five years, and total investment is CNY 1.8 billion, with USD 150 million from a World Bank loan, equivalent to CNY 915 million, and CNY 885 million of domestic funds. Project components account respectively for 65.2% (component 1), 22.3% (component 2), 0.2% (component 3) and 3.4% (component 4) of the total planned investment. Sichuan, Guizhou and Guangxi would respectively access USD 50 million, USD 40 million and USD 60 million of the World Bank loan.

4. The principles of this Project in relation to land are as follows:

 avoiding direct occupation of cultivated lands;

 avoiding the use of project investments on lands with undocumented land transfers by cooperatives or enterprises;

 avoiding departure and arrival areas in ecological resettlement programs for poverty alleviation;

 regular monitoring of whether land acquisition of cultivated lands or investments on lands with undocumented land transfers have been avoided or not.

5. There are no large-area concentrated and contiguous lands in land use in this project. Most of the civil works would take place on rural collective lands, and most of the lands would be set up through voluntary land donation and in-village land exchanges, through full negotiation among the villagers. Some land transfers from

farmer households to cooperatives and enterprises might also take place for the purpose of project-funded activities, and these would also be done through full negotiation with the villagers.

6. In spite of this, cases of land acquisition may arise in this Project in relation to the construction of public/farmers markets and village trading facilities, cooperative buildings, feed storage facilities, epidemic prevention facilities, access roads for agricultural production, and irrigation and drainage facilities. In addition, since trading markets/farmer’s markets constructed in most project counties do not have a well-defined location and area at present, their impact cannot be determined. The Borrower has therefore, in accordance with the Involuntary Resettlement OP4.12 of the World Bank, formulated this Resettlement Policy Framework (RPF) to guide land acquisition, in-village land donations and land transfers caused by the project.

B. Framework for Land Acquisition This framework applies to instances where land reallocation within villages is made without voluntary adjustments within a village for the construction of rural infrastructure and other civil works. It also provides guidance for voluntary land adjustments within a village.

B1. Objectives and Relevant Terms of the Policy Framework 7. This RPF is prepared in accordinace with the World Bank’s Involuntary Resettlement OP4.12, dated December 2001. It’s overall objectives are as follows:  discussing all feasible project design plans to avoid or reduce involuntary resettlement as far as possible;  if the resettlement is unavoidable, the resettlement activities shall be designed and implemented as sustainable development plans; providing sufficient funds, and making the affected households share the benefits of the project; seriously negotiating with the affected households, and making them have the opportunity to participate in the planning and implementation of the resettlement plans;  helping affected households to endeavor to improve livelihood and living standards, and at least making them practically recover to higher standards before removal or before the commencement of the project.

8. This RPF has stipulated the principles and objectives of the resettlement, applicable criteria, rights, legal and institutional framework, compensation and restoration modes, participation features and complaint procedures of resettlement to specifically guide the compensation, relocation and restoration of the resettlement. 9. Each resettlement plan must be based on the identifiable basic information collected, and the following persons shall be defined as affected persons, whether they are affected in a permanent or temporary manner:  Rural residents whose farmland or houses and homesteads are partly or fully affected by the project;  Urban residents whose houses are partly or fully affected by the project;  Enterprises and public institutions whose businesses or facilities are partly or fully affected by the project;  Those whose young crops or attachments are partly or fully affected by the project.

10. The specific principles of the RPF are as follows:  minimizing the acquisition of lands and other properties and corresponding resettlement as far as possible;  up to the baseline survey date, all affected households shall be qualified for requesting restoration measures to help them improve or at least maintain their

living standards, income acquisition ability and production level before the project. The lack of lawful rights to loss of assets shall not impede the affected households’ rights to the resettlement measures;  the resettlement measures provided include: (1) reimbursing houses and other buildings with replacement costs without depreciation or salvage value recovery; (2) replacement with farmlands with equal production capacity acceptable by the affected households; (3) replacement with equivalent houses and homesteads acceptable by the affected households; (4) resettlement and living allowances; (5) livelihood recovery, including skill training, employment assistance, social security and other aspects;  if the affected households accept the replacement of the houses and homesteads, farmlands, which shall be adjacent to the lost lands as far as possible;  the transitional period of resettlement shall be minimized, and the restoration measures shall be provided to the affected households at each project area in advance before the prospective commencement date;  the acquisition plan for lands and other assets and the restoration measures provided shall be repeatedly negotiated with the affected households to guarantee the minimized interference. The affected households will be empowered before the prospective commencement date;  maintaining or improving original service and resource level;  the availability of financial and material resources for resettlement and restoration must be guaranteed whenever and wherever necessary. The budget for the Resettlement Action Plan shall include unexpected expenses;  system and institutional arrangements shall guarantee the effective and timely design, plan, consultation and implementation of the properties and resettlement;  effectively and timely supervising, monitoring and assessing the implementation of the Resettlement Action Plan.

B2. Preparation and Approval of Resettlement Action Plans 11. July 2011 (project identification) is the cut-off date established to determine whether land for future project-funded infrastructure or facilities are covered under the present resettlement policy framework. Counties that have acquired land after July 2011 have produced a due diligence report prior to appraisal to confirm absence of land acquisition. Information included in these reports will be monitored during project implementation.

12. When some involuntary land acquisition is taking place under a subproject, population affected by the sub-project, but the number of affected persons is not more than 200 in one specific instance, the provincial Project Coordination Offices will closely cooperate with the county Project Management Offices (PMOs) to prepare an Abbreviated Resettlement Action Plan for the selected sub-project. This Plan shall be

submitted by the provincial Project Coordination Offices to the World Bank; meanwhile, sufficiently consultation of affected households will take place, so that and they have the opportunity to participate in the design and implementation of the Resettlement Action Plan.

13. The Abbreviated Resettlement Action Plan will at least contain the following contents:  detailed survey on affected households’ situation and asset evaluation;  description of compensations prepared to provide and other resettlement assistance;  communication with the affected households of the acceptable alternative solutions;  institutional duties and complaint procedures for the implementation;  monitoring and implementation arrangements;  progress chart and budgets.

14. The Abbreviated Resettlement Action Plan shall be completed at the latest 4 months before the estimated resettlement commencement working day. Each Abbreviated Resettlement Action Plan shall be submitted to the World Bank for review and approval at least 3 months in advance before the actual implementation. Only upon the acceptance of the Resettlement Action Plan by the World Bank shall the compensation, resettlement and restoration activities be actually started. Compensation, resettlement and restoration activities shall be completed before the performance of the building project contract.

15. In case the population affected by the project exceeds 200, the provincial Project Coordination Offices will closely cooperate with the county PMO to prepare a full Resettlement Action Plan.

16. The preparation and implementation of a Resettlement Action Plan (including paying various expenses related to the resettlement) shall be assumed by the Borrower. The provincial PCOs shall be fully responsible for this Project.

17. Such a Plan shall be submitted by the provincial PCOs to the World Bank; meanwhile, affected households will be consulted, and will be given the opportunity to participate in the design and implementation of the Resettlement Action Plan.

18. In accordance with OP 4.12, the Resettlement Action Plan will contain the following contents (if relevant), and the contents irrelevant to the project shall be indicated in the Resettlement Action Plan:  overall description of the project;  identification of the potential influence of the project;  objectives (main objectives of the relocation plan);

 social and economic research. Research shows that potential affected households shall be contained, including survey results and other descriptions at the early stage of the project preparation;  legal framework. The analysis on legal framework shows that, it includes the power spectrum of the acquisition authority of relevant organizations that are responsible for resettlement activities, and relevant compensation nature, applicable laws and administrative proceedings, relevant laws and social welfare legislation, laws and regulations, and necessary legal procedures;  institutional framework. Including the identification of the organizations that are responsible for resettlement activities, and NGOs that may play a role; assessing their institutional capacity and suggesting any step to enhance the institutional capacity;  qualifications. Determining the standards of affected households, and deciding whether he/she is qualified to be the affected household to obtain compensation and other assistances for relocation;  evaluation and compensation for losses;  describing cash compensation and other resettlement measures;  resettlement place choosing, place preparation and rearrangement;  providing houses, infrastructures and social services;  environmental protection and management;  must contain public participation and negotiation, affected household and relevant communities;  integration with local population. Measures for mitigating the influence of resettlement on any local community;  complaint procedure. Available procedures for a third party settling any dispute arising from the resettlement;  organizations and duties;  implementation progress chart;  costs and budgets;  monitoring and assessment.

19. The Resettlement Action Plan shall be completed at latest 6 months before the estimated resettlement commencement working day. Each Resettlement Action Plan shall be submitted to the World Bank for review and approval at least 3 months in advance before the actual implementation. Only upon the acceptance of the Resettlement Action Plan by the World Bank shall the compensation, resettlement and restoration activities be actually started. Compensation, resettlement and restoration activities shall be completed before the performance of the building project contract.

B3. Institutional and Legal Framework

20. The legal framework for guiding the implementation of a Resettlement Action Plan is the World Bank’s Involuntary Resettlement OP 4.12; and relevant laws, regulations and decrees of the People’s Republic of China (including national, provincial and municipal and county ones related to the project).

21. In respect of land acquisition, house demolition, resettlement and compensation, China has formulated an integrated legal framework and policy systems. Since its issuance and implementation in 1986, the Land Administration Law of the People’s Republic of China has been amended three times, and the latest amendment to it was at the 11th Session of the Standing Committee of the Tenth National People's Congress on August 28, 2004. Within national laws and policy frameworks, Guizhou Province, Sichuan Province and Gansu Province have formulated relevant local laws and policies according to the requirements of national laws and policies to manage and guide relevant local works. Local governments at various levels have in turn issued and implemented relevant laws and policies conforming to local conditions to manage and guide local land acquisition, house demolition, resettlement and compensation and other works. Each prefecture-level city, county-level city, district or county shall execute relevant provisions of their provincial government within the scope of the provincial jurisdiction.

22. In addition to OP 4.12, the major laws, regulations and decrees of the People’s Republic of China that form the basis of this Framework and guarantee its legal force include: (1) laws and policies and compensation principles related to land acquisition (Appendix I, Appendix II); (2) social insurance laws and policies (Appendix III) and (3) laws and policies related to house demolition, which cover: 1. Regulation on the Acquisition of Buildings on State-owned Land and Compensation (Order No. 590 of the State Council); 2. Measures for Assessment on the Acquisition of Buildings on State-owned Land (No.77 [2011] of the Ministry of Housing and Urban-Rural Development).

23. The latest local policies will be used in the project during the actual implementation process. The land acquisition compensation standards involved in this Project shall be subject to the stipulation that “each region shall establish dynamic adjustment mechanism for land acquisition compensation standards, and adjust the land acquisition compensation standards every 2 to 3 years according to the economic development level and local per capita income amplification” as defined in in the Notice of the Ministry of Land and Resources on Furthering Strengthening Management on Land Acquisition (June 26, 2010) .

24. Each Resettlement Action Plan will be compiled to guarantee that the affected households have sufficient opportunities to restore their lost properties, and improve or at least recover their original income level and living standards. In order to realize these objectives, it shall guarantee that all affected households are identified, and that

they have confirmed that mitigation actions listed in the Resettlement Action Plan are reasonable. In consideration of the diversity of potentially affected assets (such as, land acquisition and occupation, residential house demolition (in rural and urban areas), and non-residential house demolition (including enterprises and public institutions, shops.), the following general measures would be adopted:

25. Affected households losing farmland will be entitled to obtain the following types of compensation and restoration measures:  Collectively owned cultivated lands or unallocated village lands remaining available after land acquisition will be redistributed among all collective members through the village committees. Under such circumstances, if houses or buildings are unsafe or loss their functions due to land acquisition, such land shall be entirely acquired. All affected households shall be qualified to participate in land redistribution, and benefit from collective land compensation.  Affected households losing cultivated land must be identified in those places where it is impossible to carry out land redistribution according to Land Administration Law and other relevant laws. In some cases, they may be provided with paid job opportunities, and the salary shall at least be equal to their lost incomes. If not, the affected households will at least obtain resettlement subsidies equal to four to six times of the average output value1 generated from their lost lands for the first three years. If the affected households still cannot entirely recover original living standards through the above-mentioned measures, resettlement subsidies may be increased to 15 times of the average output value for the first three years;  If land compensation and resettlement subsidies still cannot recover original living standards of the affected persons, relevant municipal and county people’s governments may grant subsidies with paid use of State owned lands;  Land compensation and resettlement subsidies are paid to the village committees or affected households in the land-affected villages for: (1) increasing the areas of cultivated land where feasible; (2) enhancing agriculture by providing irrigation and improving agricultural works; (3) developing non-agricultural incomes based on existing activities. In addition to fixed assets, the costs of damaged young crops, fruits and economic forests of affected persons will be compensated at full replacement cost.  The impaired incomes, young crops and land restoration fees and damaged infrastructures of those affected by temporary land occupation by the project will be compensated.  If the affected households who lost their farmland meet with local conditions for social security for land-losing farmers, they shall be timely incorporated into the social security system for land-losing farmers in time.

1 Or unified annual output value.

 The affected households shall be provided with timely and reasonable skills training to improve their agricultural and non-agricultural skills, and enhance their ability to obtain incomes.

26. In the event of household demolition, affected households will be compensated as follows for their houses and attachments, with following restoration measures:  providing replacement houses with equal value;  compensated at full replacement cost;  giving rebuilding or restoration compensation for all facilities and services (such as, roads, water supply, electricity, phone, cable TV, schools, etc.);  subsidies in the transitional period to guarantee that all properties are removed or temporary houses are obtained. 27. The Resettlement Action Plan compiled shall include an entitlement matrix, a sample of which is provided in Appendix IV.

B4. Implementation Process

28. County PMOs, township project implementation units and project village committees shall hold sufficient negotiation with villagers and villager congresses to determine whether internal village exchanges are feasible for project-funded rural infrastructure or other facilities. If this is the case, villagers will enter into land donation or land transfer agreements with village committees or other villagers, which shall be submitted to townships land resource offices or townships land transfer centers for registration and filing by project village committees. If the project involves permanent occupation of State owned lands, it is necessary for land resources authorities to issue a construction land approval letter for review by the World Bank.

29. In case permanent acquisition of collective lands is unavoidable, it shall be strictly subject to relevant procedures of land acquisition. In parallel with the project’s Resettlement Action Plan, the domestic procedures of land acquisition will be followed: (1) the construction projects shall be approved by the provincial/municipal governments according to law; (2) the construction units will apply to land resources authorities of municipal and county governments for construction lands; (3) land administration departments of municipal and county governments shall prepare the land acquisition plans upon review; (4) they will report to provincial/municipal governments upon the consent of municipal and county governments; (5) land acquisition and other plans shall be approved by provincial/municipal governments according to law. During the preparation of land acquisition plans, timely and sufficient compensation will be provided to the affected households fully according to the specific policies and standards of the World Bank, local governments and this Resettlement Policy Framework.

30. When a full Resettlement Action Plan is needed, it shall include specific implementation progress charts for necessary activities. Payment of compensation,

recovery measures for other rights (cash or in-kind) and resettlement shall be completed at least one month before land acquisition. If it is impossible to pay all compensations or to provide other necessary assistances before land acquisition, extra transitional subsidies will be provided.

B6. Budget Arrangements

31. Each county Project Management Office shall assume all expenses related to land acquisition and resettlement. Any Resettlement Action Plan under this Resettlement Policy Framework must include estimated costs and budgets. Regardless of whether being identified as affected households at the resettlement planning stage or not, and regardless of whether sufficient poverty alleviation funds are in place or not, all person adversely affected by land acquisition or house demolition due to a project-funded activity shall be entitled to obtain compensation and other mitigation measures as defined in the entitlement matrix (Appendix IV). The budget of the Resettlement Action Plan shall include unexpected expenses of at least 10% of the total budget of the expected resettlement, so as to satisfy unexpected resettlement expenses.

32. The compensation standards determined in the Resettlement Action Plan have provided basis for calculating compensation at full replacement cost. The resettlement compensation fees shall be fully paid to the individuals or collectives who have lost land or other properties, and shall not be subject to deductions for whatever reasons. The Resettlement Action Plan shall describe how the compensations flow to affected villages or villagers from each sub-project owner. The disbursement channel must be direct as far as possible, without intermediate links.

B6. Public Participation and Information Publication

33. The Resettlement Action Plan must describe the measures adopted or to be adopted, make the affected persons participate in the proposed resettlement arrangements, and cultivate their awareness of participation in improvement or recovery activities of livelihoods. In order to guarantee sufficient consideration of the opinions and suggestions of the affected persons, public participation shall precede the implementation of project design and of compensation and mitigation measures. Public participation must be organized throughout the whole implementation of the Resettlement Action Plan and is subject to external monitoring.

34. At the first draft and final draft stages of the Resettlement Action Plan, each county PMO shall make the Resettlement Action Plan public for the affected persons and for the general public, using local languages when needed in ethnic minority areas. The first draft of the Resettlement Action Plan shall be published at least one month before its assessment by the World Bank. The final draft of the Resettlement Action Plan must be published again upon acceptance by the World Bank.

35. While public participation in this Project and the Resettlement Action Plan are published, this Policy Framework has solicited the opinions of the affected person, and has been published at the affected counties and cities and communities.

C. 4. Land Transfers and Use of Land as Shares

36. The development of several agricultural pillar industries in the project area may necessitate to creation or expansion of production bases. This is likely to take place through land transfers or pooling of members’ land use rights into cooperatives as shares. This generates a risk of social impact: land transfer and pooling of land into cooperatives as shares might not be fully voluntary, and the rural poor households might not be able to benefit fairly from these arrangements. In cooperatives, since the project provides an investment fund to cooperatives in a grant form, there should be no requirement that households are requested to pool their land into the cooperative’s capital stock (“land shares”) as a condition to become a cooperative member.

37. In order to minimize risks related to such land management as far as possible during the implementation process of the project, the following points shall be abided by:  Guaranteeing that cooperatives (and companies) supported by the project abide by the principles of voluntary participation by farmer households, and provision to households of fair and equitable land arrangements;  Guaranteeing that farmer households have the right to choose to participate in the production bases or not, at their own discretion, and that they are not impacted by nearby production bases;  Adopting transparent written contracts with a clear time limit, and promoting short-term land lease ways rather than choosing long-term land lease; thus rural poor households will be able to freely choose to exit from cooperatives after the term of a contract, especially under circumstances when household members return to the villages and wish to use the land for their own production;  Guaranteeing that equity arrangements in cooperatives that would request farmer households to provide land as shares or transfer lands to cooperatives as a condition to become a cooperative member shall not be supported by the project. 38. Two measures are taken in order to implement this approach. First, the management of land in cooperatives is defined as a topic requiring attention in all cooperative related activities. Training courses on cooperative management will include a section on land management. During the formalization of cooperatives, a specific step in the participatory approach will take place to ensure that land management options are discussed among members of the cooperative and that a fair and transparent option is defined. Households will therefore retain the possibility not to join. The by-laws of the cooperative will describe the option that has been selected with sufficient detail.

39. Second, any voluntary land transfer or use of land as share in a project-supported cooperative will be made through the national legal framework. Farmers agreeing to transfer and pool land will sign individual contracts and will keep a copy of this contract. This contract will describe the basis on which the annual land transfer fee or the cooperative dividend is calculated, and specify the duration of the contract, and the possibility to opt out of the land transfer or pooling of land as share at the end of the contract. If the cooperative already has established a production base without documented land transfers or without clear dividends for land shares, it will either to go through this formalization or that production base will remain out of the scope of the project. 40. Should an enterprise, not a cooperative, use project funds to set up a facility or production base, such as a demonstration farm, the same principles and measures apply regarding land transfer from households or use of their land as shares.

D. Complaint Mechanism

41. As the above activities will be carried out with the participation of affected persons, no substantial conflitcs are expected. However, in order to guarantee that affected persons have a channel to lodge a complaint against any aspect related to land acquisition, resettlement, land transfers or use of land as shares, the following complaint procedures are established:  Stage I: Affected persons may put forward their dissatisfaction to village committees or to the township resettlement office or relevant township government office that has been designated for the project, through oral complaint or written complaint. Village committees or township government offices must keep a written record of oral complaints and give a clear reply within two weeks. If it is necessary to report to the government at higher level in case of severe problems, the village committee or the township government office must obtain the reply from the government offices at higher level within two weeks as far as possible.  Stage II: If the complainant is dissatisfied with the reply at Stage I, the complainant may make an appeal to the relevant government office at higher level within one month after receiving the reply at Stage I. County or district government offices must make decisions within two weeks.  Stage III: If the affected persons are dissatisfied with the reply of county or district resettlement offices, they may make an appeal to the relevant provincial government office within one month after receiving the reply at Stage II. The provincial office must issue a decision within four weeks.  Stage IV: If the affected persons are dissatisfied with the reply at Stage III, they may make an appeal to the civil courts within 15 days after receiving the reply of the provincial resettlement offices.

E. Monitoring and Evaluation

42. Each county PMO shall supervise and monitor the implementation of this Resettlement Policy Framework. The supervision and monitoring results shall be recorded in the quarterly reports, so as to report to the World Bank. 43. Internal monitoring and supervision of resettlement actions plans:  Checking the performance, including verification on the baseline information of all affected households, evaluation and compensation articles for asset damages or losses, implementation of resettlement and restoration rights according to the articles of the Policy Framework and each Resettlement Action Plan;  Monitoring if the Resettlement Action Plan is implemented according to the designed and approved plans;  Verifying if compensation has been timely and fully paid, and if the use of these capitals is consistent with the articles in the Resettlement Action Plan;  Recording all complaints and resolutions thereof, and guaranteeing the complaints are resolved in time. 44. Internal monitoring of land transfers and use of land as shares:  Monitoring that households have received prior information;  Monitoring that households have kept individual land transfer contracts showing contract terms;  Verifying that cooperative arrangements in relation to land are transparent;  Recording all complaints and resolutions thereof, and guaranteeing the complaints are resolved in time. 45. External independent monitoring: at least twice during the project, the national project coordination center will engage independent organizations to periodically perform external monitoring and evaluation on the implementation of the Resettlement Policy Framework through open tendering. Independent organizations or individuals may be academic or institutional units, NGOs or independent consulting companies, provided that they have qualified and experienced staff, and their terms of reference are acceptable by the World Bank and cover a reasonable sample size. 46. In the event a full Resettlement Action Plan is needed, a specific external M&E survey will be undertaken, and its main objectives will be as follows:  Assessing if the procedures for affected household participation and compensation granting and restoration right are implemented, and if is consistent with the Policy Framework and Resettlement Action Plan.  Assessing if the objective of the Policy Framework of “improving or at least maintaining current living standards and income level of the affected households” has been achieved.  Collecting the qualitative information on project impact on livelihoods.

47. Problems identified during the monitoring and assessment process shall be timely reported to the World Bank. Each county PMO shall identify the source of the problems, develop solutions, and adopt timely and effective responses to solve these problems through negotiation with the World Bank and the provincial PMO. 48. Suggestions for improvement of measures including in this Resettlement Policy Framework will be incorporated as lessons arise from project implementation, in order to achieve its objective and principles.

Appendix I Laws and Policies Related on Land Acquisition

No Level Location Policy Document Effective Date . Property Law of the People’s Republic of China October 1, 2007 Land Administration Law of the People’s Republic of China August 28, 2004 Regulations on the Implementation of the Land Administration Law of the Peoples Republic of China December 27, 1998 (Order No. 256 of the State Council) Decision of the State Council on Deepening the Reform and Enforcing Land Administration (No. 28 October 21, 2004 [2004] of the State Council) Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (No. 238 November 3, 2004 [2004] of the Ministry of Land and Resources) National / Decision of the State Council on Deepening the Reform and Enforcing Land Administration (No. 28 October 21, 2004 [2004] of the State Council) Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (No. 238 November 3, 2004 [2004] of the Ministry of Land and Resources) Circular of the State Council on Intensifying Land Control (No. 31 [2006] of the State Council) August 31, 2006 Notice of the Ministry of Land and Resources on Developing the Standards of Unified Annual Output Value for Acquired Land and Comprehensive Land Price in the Area (No. 114 [2005] of the July 23, 2005 Ministry of Land and Resources) Methods for Announcement of Land Acquisition (Decree No. 10 of the Ministry of Land and January 1, 2002 Resources) Notice of the Ministry of Land and Resources and the Ministry of Agriculture on Issues Related to Improved Facilities and Farmland Management (No. 155 [2010] of the Ministry of Land and September 30,

Resources) 2010

No Level Location Policy Document Effective Date . Reply of the People’s Government of Guizhou Province to the Standards of Unified Annual Output Value and Comprehensive Land Price in Land Acquisition Areas in Guizhou Province (Letter No. 255 December 21, 2009 [2009] of the People’s Government of Guizhou Province) Guizhou 1 Province Letter of the Department of Land and Resources of Guizhou Province on Forwarding the Reply of the People’s Government of Guizhou Province to the Standards of Unified Annual Output Value and December 29, 2009 Comprehensive Land Price in Land Acquisition Areas in Guizhou Province (Letter No. 624 [2009] of the Department of Land and Resources of Guizhou Province) Notice of the Office of the People’s Government of Sichuan Province on Forwarding the Opinions of Land and Resources Department of Sichuan Province on Issues Related to Adjust the Standards of April 13, 2008 Acquired Land Remuneration and Resettlement (Letter No. 73 [2008] of the Office of the People’s Government of Sichuan Province) Provincial Notice of Land and Resources Department of Sichuan Province on Implementing the Standards of Unified Annual Output Value for Acquired Land (No. 54 [2009] of Land and Resources Department of January 1, 2010 Sichuan 2 Sichuan Province) Province Reply of the People’s Government of Sichuan Province to Approve the Compensation Standards of Young Crops and Attachments on Acquired Land in Liangshan Prefecture (Letter No. 96 [2012] of May 29, 2012 the People’s Government of Sichuan Province) Reply of the People’s Government of Sichuan Province to Approve the Compensation Standards of Young Crops and Attachments on Acquired Land in Luzhou City (Letter No. 53 [2012] of the People’s July 16, 2012 Government of Sichuan Province) Notice of the People’s Government of Gansu Province on Printing and Issuing the Standards of Gansu 3 Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value for Acquired January 1, 2013 Province Land in Gansu Province (No. 151 [2012] the People’s Government of Gansu Province)

City Reply of the Administrative Office of Bijie City to Adjust the Implementation Scope of Comprehensive (Autono- 1 Bijie City Land Price and Land Acquisition Standards in Dafang County (Reply No. 58 [2011] of the July 6, 2011 mous Administrative Office of Bijie City)

No Level Location Policy Document Effective Date . Pref- Announcement of the Administrative Office of Bijie City on the Standards of Unified Annual Output ecture) Value for Acquired Land and Comprehensive Land Price in Land Acquisition Areas and in Bijie City January 1, 2010 (Implemented as from January 1, 2010) Reply of the People’s Government of Zunyi City to the Standards of Unified Annual Output Value and 2 Zunyi City Comprehensive Land Price in Land Acquisition Areas (Letter No. 245 [2009] of the People’s December 30, 2009 Government of Zunyi City) Notice of the Office of the People’s Government of Luzhou City on Issues Related to the Administration of Land Temporarily Used for the Construction of Linear Projects (Letter No. 27 [2009] February 6, 2009 Office of the People’s Government of Luzhou City) Notice of the Office of the People’s Government of Luzhou City on Notice of Measures for Acquired Land Compensation and Resettlement for Linear Projects (Trial Implementation) (Letter No. 17 August 8, 2011 [2011] Office of the People’s Government of Luzhou City) Notice of the People’s Government of Luzhou City on Printing and Issuing the Compensation 3 Luzhou City Standards of Young Crops and Attachments on Acquired Land (Letter No. 26 [2012] of the People’s September 1, 2012 Government of Luzhou City) Announcement of the People’s Government of Luzhou City on the Standards of Unified Annual February 22, 2010 Output Value for Acquired Land (No.1 [2010] the People’s Government of Luzhou City) Notice of the Office of the People’s Government of Luzhou City on Printing and Issuing the Measures for Acquired Land Compensation and Resettlement for Linear Projects in Luzhou City (Trial September 7, 2013 Implementation) (Letter No. 34 [2013] Office of the People’s Government of Luzhou City) Notice of Land and Resources Department of Liangshan Prefecture on Forwarding the Notice of Land and Resources Department of Sichuan Province on Implementing the Standards of Unified Liangshan Yi Annual Output Value for Acquired Land (No. 61 [2009] of Land and Resources Department of 4 Autonomous Liangshan Prefecture) December 11, 2009 Prefecture

No Level Location Policy Document Effective Date . Notice of the People’s Government of Liangshan Prefecture on Forwarding the Reply to Approve the Compensation Standards of Young Crops and Attachments on Acquired Land in Liangshan October 15, 2012 Prefecture (Letter No. 153 [2012] of the People’s Government of Liangshan Prefecture) Linxia Hui Notice of the People’s Government of Gansu Province on Printing and Issuing the Standards of 5 Autonomous Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value for Acquired January 1, 2013 Prefecture Land in Gansu Province (No. 151 [2012] the People’s Government of Gansu Province) Notice of the People’s Government of Gansu Province on Printing and Issuing the Standards of 6 Wuwei City Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value for Acquired January 1, 2013 Land in Gansu Province (No. 151 [2012] the People’s Government of Gansu Province) Notice of the Office of the People’s Government of Tianshui City on Forwarding the Standards of 7 Tianshui City Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value for Acquired February 25, 2013 Land in Gansu Province (No. 22 [2013] Office of the People’s Government of Tianshui City) Notice of the Office of the Land and Resources Department of Dingxi City on Forwarding the Notice of Land and Resources Department of Gansu Province on the Standards of Comprehensive Land 8 Dingxi City March 1, 2013 Price in Land Acquisition Areas and Unified Annual Output Value for Acquired Land in Gansu Province (No. 25 [2013], Land and Resources Department of Dingxi City) Notice of the Land and Resources Department of Qingyang City on Forwarding the Standards of Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value for Acquired March 5, 2013 Qingyang Land in Gansu Province (No. 11 [2013], Land and Resources Department of Qingyang City) 9 City Notice of the Land and Resources Department of Qingyang City on Regulating the Compensation Standards of Attachments on the Acquired Collective Lands in Urban Planning Areas of Qingyang December 11, 2010 City (No. 320 [2010], Land and Resources Department of Qingyang City)

Notice of the People’s Government of Pingliang City on Approving the Assessment and Guiding 10 Pingliang City March 21, 2007 Standards of Compensation for Demolished Urban Houses and Ancillary Facilities in Pingliang City

No Level Location Policy Document Effective Date . Notice of the People’s Government of Dafang County on Adjusting the Implementation Scope of Comprehensive Land Price and Unified Land Acquisition Standards in the Planning Areas of Dafang April 28, 2011 Dafang County (No. 56 [2011] the People’s Government of Dafang County) 1 County Reply of the Administrative Office of Bijie City to Adjust the Implementation Scope of Comprehensive Land Price and Land Acquisition Standards in Dafang County (Reply No. 58 [2011] of the July 5, 2011 Administrative Office of Bijie City) Announcement of the Administrative Office of Bijie City on the Standards of Unified Annual Output 2 Zhijin County January 1, 2010 Value for Acquired Land and Comprehensive Land Price in Land Acquisition Areas and in Bijie City Reply of the People’s Government of Zunyi City to the Standards of Unified Annual Output Value and Tongzi 3 Comprehensive Land Price in Land Acquisition Areas (Letter No. 245 [2009] of the People’s January 1, 2010 County Government of Zunyi City) Notice of the People’s Government of Xishui County on Publishing the Standards of Unified Annual 4 Xishui County January 1, 2010 County Output Value for Acquired Land (No. 46 [2010] the People’s Government of Xishui County) (District) Notice of the People’s Government of Chishui City on Printing and Issuing the Interim Measures for 5 Chishui City Compensation and Resettlement for Collective Land Acquisition in Urban Planning Areas of Chishui January 1, 2012 City (No. 69 [2011] the People’s Government of Chishui City) Announcement of the People’s Government of Luzhou City on the Standards of Unified Annual 6 Gulin County February 22, 2010 Output Value for Acquired Land (No.1 [2010] the People’s Government of Luzhou City) Xuyong Announcement of the People’s Government of Luzhou City on the Standards of Unified Annual 7 February 22, 2010 County Output Value for Acquired Land (No.1 [2010] the People’s Government of Luzhou City)

Notice on Forwarding the Notice of Land and Resources Department of Sichuan Province on Jinyang 8 Implementing the Standards of Unified Annual Output Value for Acquired Land (No. 61 [2009], Land December 11, 2009 County and Resources Department, Liangshan Prefecture)

No Level Location Policy Document Effective Date . Notice on Forwarding the Notice of Land and Resources Department of Sichuan Province on Implementing the Standards of Unified Annual Output Value for Acquired Land (No. 61 [2009], Land December 11, 2009 Zhaojue 9 and Resources Department, Liangshan Prefecture) County (Zhaojue) Technical Proposal of Sichuan Province for Revising Compensation Standards of Young August 17, 2011 Crops and Attachments on the Land Report on Adjusting Compensation Level for Cultivated Lands in Meigu County (No. 49 [2013] of October 18, 2013 Land and Resources Department of Meigu County) 10 Meigu County Description of Land and Resources Department of Meigu County on the Implementation of November 6, 2013 Resettlement and Compensation for Acquired Collective Lands (November 6, 2013) Notice on Forwarding the Notice of Land and Resources Department of Sichuan Province on 11 Butuo County Implementing the Standards of Unified Annual Output Value for Acquired Land (No. 61 [2009] of December 11, 2009 Land and Resources Department of Liangshan Prefecture)

Yongjing Notice of the People’s Government of Gansu Province on Printing and Issuing the Standards of 12 County Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value for Acquired January 1, 2013 Land in Gansu Province (No. 151 [2012] the People’s Government of Gansu Province) Dongxiang Notice of the People’s Government of Gansu Province on Printing and Issuing the Standards of Nationality 13 Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value for Acquired January 1, 2013 Autonomous Land in Gansu Province (No. 151 [2012] the People’s Government of Gansu Province) County Notice of the People’s Government of Gansu Province on Printing and Issuing the Standards of Gulang 14 Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value for Acquired January 1, 2013 County Land in Gansu Province (No. 151 [2012] the People’s Government of Gansu Province) Zhangjia- Notice of the People’s Government of Gansu Province on Printing and Issuing the Standards of 15 chuan Hui Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value for Acquired January 1, 2013 Autonomous Land in Gansu Province (No. 151 [2012] the People’s Government of Gansu Province) County

No Level Location Policy Document Effective Date . Tongwei Reply of the People’s Government of Tongwei County on Adjusting Compensation Standards of 16 January 1, 2013 County Acquired Land (Reply No. 4 [2013] of the People’s Government of Tongwei County) Notice on Forwarding the Notice of Land and Resources Department of Gansu Province on the Longxi Standards of Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value 17 March 1, 2013 County for Acquired Land in Gansu Province (No. 25 [2013] of the Land and Resources Department of Dingxi City) Notice on Forwarding the Notice of Land and Resources Department of Gansu Province on the Minxian 18 Standards of Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value March 1, 2013 County for Acquired Land in Gansu Province Announcement of the People’s Government of Weiyuan County on Publishing Compensation Weiyuan Standards of Acquired Land and Nursery-grown Plants and Crops in the Acquired Cultivated Lands 19 March 23, 2013 County for Project Construction in Weiyuan County (Announcement No. 10 [2013] of the People’s Government of Weiyuan County) Announcement of the People’s Government of Lintao County on Adjusting Compensation Standards 20 Lintao County of Crops and Trees in the Interim Measures of Lintao County for Land Acquisition Compensation and January 1, 2006 Resettlement (No. 43 [2005] the People’s Government of Lintao County) Interim Measures of Lintao County for Land Acquisition Compensation and Resettlement (Order No. March 1, 2003 4 [2003] of the People’s Government of Lintao County) Notice on Forwarding the Notice of Land and Resources Department of Gansu Province on the Anding Standards of Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value 21 March 1, 2013 District for Acquired Land in Gansu Province (No. 25 [2013] the Land and Resources Department of Dingxi City)

Huachi 22 Notice of the People’s Government of Huachi County on Adjusting the Standards of Compensation March 1, 2009 County and Resettlement Fees for Acquisition of National Construction Lands (No. 1 [2009] the People’s Government of Huachi County)

No Level Location Policy Document Effective Date . Notice of the Office of the People’s Government of Huan County on Printing and Issuing the 23 Huan County Compensation Standards of Attachments on the Acquired Collective Lands in Huanxian County (No. October 1, 2009 102 [2009] Office of the People’s Government of Huan County) Heshui Guidelines of the People’s Government of Heshui County on Regulating Collective Land Acquisition 24 May 1, 2012 County and Compensation (No. 30 [2012] the People’s Government of Heshui County) Zhengning Table for the Compensation Standards of Attachments on the Acquired Collective Lands in 25 December 23, 2012 County Zhengning County Notice of the People’s Government of Gansu Province on Printing and Issuing the Standards of Zhuanglang 26 Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value for Acquired January 1, 2013 County Land in Gansu Province (No. 151 [2012] the People’s Government of Gansu Province) Jingning Notice of the People’s Government of Jingning County on Adjusting the Compensation Standards of 27 January 1, 2012 County the Acquired Urban and Townships Lands (No. 63 [2011]

Appendix II Compensation Principles for the Project Areas 1. Compensation Principles for Land Acquisition 1.1 Compensation Principles for Permanent Land Acquisition 49. The compensation principles for permanent land acquisition in this Project will be implemented according to: 50. In Guizhou: the requirements of the Reply of the People’s Government of Guizhou Province to the Standards of Unified Annual Output Value and Comprehensive Land Price in Land Acquisition Areas in Guizhou Province (Letter No. 255 [2009] of the People’s Government of Guizhou Province); 51. In Sichuan: Notice of Land and Resources Department of Sichuan Province on Implementing the Standards of Unified Annual Output Value for Acquired Land (No. 54 [2009] of Land and Resources Department of Sichuan Province) 52. In Gansu: Notice of the People’s Government of Gansu Province on Printing and Issuing the Standards of Comprehensive Land Price in Land Acquisition Areas and Unified Annual Output Value for Acquired Land in Gansu Province (No. 151 [2012] the People’s Government of Gansu Province) 53. Land compensation will be calculated according to the product of Standards of Unified Annual Output Value for Acquired Land/ Comprehensive Land Price in Land Acquisition Areas and the acquired land area. The project implementation shall be subject to then valid compensation principles and provisions of the provinces, cities/counties at the place where the project locates, and any unit and individual shall not arbitrarily raise or lower the land compensation standards. 1.2 Compensation Principles for Temporary Land Acquisition 54. The construction of this Project may involve in temporarily expropriating collective lands, the specific location and area of which may not be determined at present. In accordance with the negotiation with project owner, relevant units and village committees of affected villages, if collective lands are unavoidably acquired temporarily during the project construction period, project owner will fully negotiate with affected village committees and affected households to determine the compensation principles, and young crops will be compensated by reference to local policies of the project county; and if young crops are not affected, it shall be settled through negotiation as the case may be, and the lawful rights and interests of village committees of affected villages and affected households shall be reasonably compensated. 1.3 Compensation Principles for Attachments 55. The compensation for attachments and public utilities on the land affected by the project shall be subject to corresponding compensation principles for attachments by each project county. 2 Compensation Principles for House Demolition 2.1 Rural Residential House Demolition

56. Compensation principles for demolished rural residential houses related to this Project shall be assessed by a third-party assessment agency with assessment qualification according to market price, and the demolition compensation price will be finally determined by relocated households through negotiation based on the assessment and in the form of agreement. 2.2 Rural Non-residential House Demolition 57. Specific compensation principles for demolished rural non-residential houses related to this Project shall be subject to the methods of “one project, one discussion” with the property owner by project owner coordinated by local government, and then the demolished rural non-residential houses will be compensated according to market assessment by a third-party assessment agency with assessment qualification. The compensations will be fully and timely granted to the property owner. 58. (1) Compensation for the buildings (structures) of the relocated households: permanent buildings (structures) will be assessed by the assessment agency according to the replacement cost method which shall evaluate the assessment value, so as to determine the compensations. 59. (2) Machinery equipments and the associated equipments of relocated households will be assessed by the assessment agency according to the replacement cost method which shall evaluate the assessment value of the machinery equipments. Compensations for irremovable machinery equipments and the associated equipments will be determined according to the assessment value, and the removal compensations for removable machinery equipments and the associated equipments will be determined according to the assessment. 60. (3) Compensations and removal compensations for young crops on the lands will be determined according to the assessment. 61. (4) If the relocated households stop production or close down due to demolition, the remover shall compensate the personnel closed down according to the staff number (including temporary workers) registered in the city/county labor and social protection organization and local conditions, generally according to the product of local minimum wage standards and close-down months; relocated households stopped production or closed down will be compensated according to the times of monthly average after-tax profit in the year with the maximum profit filed with the tax department in the first three years before the demolition; the removal subsidies for the plant and office occupancy will be compensated based on local conditions.

Appendix III Laws and Policies on Social Security

Level No. Location Policy Documents Effective Date Notice of the General Office of the State Council on Forwarding the Guidelines from the Ministry of National / / Labor and Social Security on Effectively Performing the Career Training and Social Security Work April 10, 2006 Farmers Whose Lands are Acquired (No. 29 [2006] the General Office of the State Council) Opinions of the People’s Government of Guizhou Province on Further Effectively Performing the September 9, Career Training and Social Security Work for Farmers Whose Lands are Acquired (No. 26 [2011] Guizhou 2011 1 the People’s Government of Guizhou Province) Province Guidelines on Social Security Business for Farmers Whose Lands are Acquired in Guizhou October 9, 2011 Province (No. 41[2011] Human Resources and Social Security Department of Guizhou Province) Notice of Labor and Social Security Department of Sichuan Province on Carrying out the Inspection Work for the Implementation of Social Security Policies for Farmers Whose Lands are December 15, Acquired (Letter No. 239 [2009] of Human Resources and Social Security Department of Sichuan 2009 Provincial Province) Sichuan Notice of the Office of the People’s Government of Sichuan Province on Further Effectively 2 Province Performing the Social Security Work for Farmers Whose Lands are Acquired (No. 15 [2008] Office April 13, 2008 of the People’s Government of Sichuan Province) Notice of the Office of the People’s Government of Sichuan Province on the Participation of December 22, Urbanized Personnel Whose Lands are Acquired in Basic Endowment Insurance (Letter No. 302 2009 [2009] of the Office of the People’s Government of Sichuan Province) Gansu Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in Gansu November 17, 3 Province Province (No. 41 [2011] the People’s Government of Gansu Province) 2011 Implementation Opinions of the People’s Government of Bijie City on Further Effectively City 1 Bijie City Performing the Career Training and Social Security Work for the Farmers Whose Lands are May 2, 2012 (Autonomous Acquired (No. 21 [2012] the People’s Government of Bijie City) Prefecture) 2 Zunyi City Notice of the Office of the People’s Government of Bijie City on Printing and Issuing the February 10, 2012 Implementation Opinions on Further Effectively Performing the Career Training and Social

Level No. Location Policy Documents Effective Date Security Work for the Farmers Whose Lands are Acquired in Zunyi City (No. 29 [2012] Office of the People’s Government of Zunyi City) Notice of the People’s Government of Luzhou City on Adjusting the Calculation and Payment Measures for Endowment Insurance Pension for the Farmers Whose Lands are Acquired (No. 47 July 1, 2005 [2005] Office of the People’s Government of Luzhou City) Notice on Printing and Issuing the Implementation Opinions on Improving the Social Endowment September 18, Insurance and Unemployment Insurance for the Urbanized Personnel Whose Lands are Acquired 2007 (No. 19 [2007] Labor and Social Security Department of Luzhou City) 3 Luzhou City Notice of Labor and Social Security Department of Luzhou City on Issues Related to Social Endowment Insurance for the Urbanized Personnel Whose Lands are Acquired (No. 5 [2012] February 3, 2012 Labor and Social Security Department of Luzhou City) Opinions of the People’s Government of Luzhou City on Developing Long-term Mechanism of Life and Social Security for the Farmers Whose Lands are Acquired (No. 17 [2006] Office of the February 19, 2006 People’s Government of Luzhou City) Notice of the Office of the People’s Government of Sichuan Province on Further Effectively Performing the Social Security Work for the Farmers Whose Lands are Acquired (No. 15 [2008] April 11, 2008 Office of the People’s Government of Sichuan Province) Liangshan Yi Notice on the Participation of Urbanized Personnel Whose Lands are Acquired in Basic December 21. 4 Autonomous Endowment Insurance (Letter No. 302 [2009] of the Office of the People’s Government of Sichuan 2009 Prefecture Province) Notice of the Office of Human Resources and Social Security Bureau of Liangshan Prefecture on Further Effectively Implementing Issues Related to the Social Security Policies for Farmers Whose July 23, 2012 Lands are Acquired Notice on Measures for Resolving Resettlement and Security Problems for Certain Farmers Linxia Hui Whose Lands are Acquired (Notice No. 96 [2011] of Human Resources and Social Security October 8, 2011 5 Autonomous Department of Linxia Hui Autonomous Prefecture) Prefecture Implementation Measures for Endowment Insurance for Farmers Whose Lands are Acquired in November 23,

Level No. Location Policy Documents Effective Date Linxia Hui Autonomous Prefecture (No. 127 [2012] the People’s Government of Linxia Hui 2012 Autonomous Prefecture) Implementation Opinions of Wuwei City on Carrying out the Measures for Endowment Insurance 6 Wuwei City for the Farmers Whose Lands are Acquired in Gansu Province (No. 16 [2011] the People’s February 3, 2011 Government of Wuwei City) Notice of the People’s Government of Tianshui City on Printing and Issuing the Implementation 7 Tianshui City Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in Tianshui City June 18, 2012 (No. 75 [2012] the People’s Government of Tianshui City) Notice on Carrying out the Implementation Measures for Endowment Insurance for the Farmers 8 Dingxi City Whose Lands are Acquired in Gansu Province (No. 8 [2012] Human Resources and Social January 13, 2012 Security Department of Dingxi City) Administrative Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in May 17, 2012 Qingyang City (No. 10 [2010] the People’s Government of Qingyang City) Opinions of the People’s Government of Qingyang City on Carrying out the Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in Gansu Province (No. 91 August 18, 2012 9 Qingyang City [2012] the People’s Government of Qingyang City) Notice of Human Resources and Social Security Department of Qingyang City on Forwarding the Regulations for Handling Endowment Insurance for the Farmers Whose Lands are Acquired in October 27, 2010 Gansu Province (No. 116 [2010] the Human Resources and Social Security Department of Qingyang City) Notice of the People’s Government of Pingliang City on Printing and Issuing the Implementation 10 Pingliang City Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in Pingliang City July 8, 2012 (No. 78 [2012] the People’s Government of Pingliang City) Notice of the People’s Government of Dafang County on Printing and Issuing the Implementation County Dafang 1 Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in Dafang County July 22, 2013 (District) County (No. 118 [2013] the People’s Government of Dafang County)

Level No. Location Policy Documents Effective Date Notice of the People’s Government of Zhijin County on Printing and Issuing the Implementation Measures for Further Effectively Performing the Career Training and Social Security Work for the 2 Zhijin County March 1, 2013 Farmers Whose Lands are Acquired in Zhijin County (Trial Implementation) (No. 7 [2013] the People’s Government of Zhijin County) Notice of the People’s Government of Tongzi County on Printing and Issuing the Implementation 3 Tongzi County Opinions on Career Training and Social Security Work for the Farmers Whose Lands are Acquired October 25, 2013 in Tongzi County (No. 153 [2013] the People’s Government of Tongzi County) Notice of the People’s Government of Xishui County on Printing and Issuing the Implementation Measures for Career Training and Social Security Work for the Farmers Whose Lands are August 28, 2012 Acquired in Xishui Count (No. 223 [2012] the People’s Government of Xishui County) 4 Xishui County Notice of the Office of the People’s Government of Xishui County on Printing and Issuing the Implementation Measures for Endowment Insurance for the Farmers Whose Lands are Acquired April 23, 2013 in Xishui County (No. 112 [2013] the Office of the People’s Government of Xishui County) Notice of the Office of the People’s Government of Chishui City on Printing and Issuing the Implementation Measures for Career Training and Social Security Work for the Farmers Whose 5 Chishui City October 1, 2013 Lands are Acquired in Chishui City (Trial Implementation) (No. 163 [2013] the Office of the People’s Government of Chishui City) Implementation Opinions of the Office of the People’s Government of Gulin County on the Participation in Basic Endowment Insurance and Employment and Reemployment Work for 6 Gulin County April 21, 2007 Urbanized Personnel Who has not Adopted the Social Security Resettlement Measures when the Lands are Acquired (No. 163 [2013] the Office of the People’s Government of Gulin County) Xuyong Administrative Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in 7 May 17, 2012 County Qingyang City (No. 10 [2010] the People’s Government of Qingyang City) Notice of the Office of the People’s Government of Jinyang County on Further Effectively Jinyang September 1, 8 Implementing Issues Related to the Social Security Policies for the Farmers Whose Lands are County 2008 Acquired

Level No. Location Policy Documents Effective Date Notice of the Office of the People’s Government of Sichuan Province on Further Effectively Zhaojue 9 Performing the Social Security Work for the Farmers Whose Lands are Acquired (No. 15 [2008] April 11, 2008 County Office of the People’s Government of Sichuan Province) Notice of the Office of the People’s Government of Sichuan Province on Further Effectively 10 Meigu County Performing the Social Security Work for the Farmers Whose Lands are Acquired (No. 15 [2008] April 11, 2008 Office of the People’s Government of Sichuan Province) Notice of the Office of the People’s Government of Sichuan Province on Further Effectively 11 Butuo County Performing the Social Security Work for the Farmers Whose Lands are Acquired (No. 15 [2008] April 11, 2008 Office of the People’s Government of Sichuan Province) Implementation Measures for Endowment Insurance for the Farmers Whose Lands are Acquired Yongjing November 23, 12 in Linxia Hui Autonomous Prefecture (No. 127 [2012] the People’s Government of Linxia Hui County 2012 Autonomous Prefecture) Dongxiang Notice of Dongxiang County on Printing and Issuing the Implementation Measures for Pilot Work Nationality September 22, 13 of Social Endowment Insurance for Urban and Rural Residents (No. 176 [2011] the People’s Autonomous 2011 Government of Dongxiang County) County Implementation Regulations on Endowment Insurance for the Farmers Whose Lands are Acquired in Gulang County (Trial Implementation) (No. 79 [2010] the People’s Government of Gulang October 1, 2010 Gulang County) 14 County Implementation Opinions of the People’s Government of Gulang County on Incorporating the Land-lost Farmers in the Urban Planning Area into the Endowment Insurance Coverage for the June 30, 2011 Farmers Whose Lands are Acquired (No. 138 [2011] the People’s Government of Gulang County) Zhangjiachuan Notice of the People’s Government of Zhangjiachuan County on Forwarding the Implementation Hui-ethnic 15 Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in Tianshui City July 12, 2012 Autonomy (No. 99 [2012] the People’s Government of Zhangjiachuan County) County

Level No. Location Policy Documents Effective Date Notice on Carrying out the Implementation Measures for Endowment Insurance for the Farmers Tongwei 16 Whose Lands are Acquired in Gansu Province (No. 8 [2012] Human Resources and Social January 13, 2012 County Security Department of Dingxi City) Notice of the People’s Government of Longxi County on Printing and Issuing the Implementation 17 Longxi County Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in Longxi County October 1, 2010 (No. 25 [2010] the People’s Government of Longxi County) Notice on Carrying out the Implementation Measures for Endowment Insurance for the Farmers 18 Min County Whose Lands are Acquired in Gansu Province (No. 8 [2012] Human Resources and Social January 13, 2012 Security Department of Dingxi City) Weiyuan Implementation Regulations on Endowment Insurance for the Farmers Whose Lands are Acquired September 10, 19 County in Weiyuan County (Trial Implementation) 2013 Implementation Regulations on Endowment Insurance for the Farmers Whose Lands are Acquired 20 Lintao County March 31, 2008 in Lintao County (Trial Implementation) Notice of the Office of the People’s Government of Dingxi CityAnding District on Printing and Issuing the Implementation Measures for Endowment Insurance for the Farmers Whose Lands are 21 Anding District April 24, 2012 Acquired in Dingxi CityAnding District (Trial Implementation) (No. 67 [2012] the Office of the People’s Government of Dingxi CityAnding District) Notice of the Office of the People’s Government of Huachi County on Printing and Issuing the 22 Huachi County Implementation Measures for Endowment Insurance for the Farmers Whose Lands are Acquired April 15, 2013 in Huachi County (No. 51 [2013] the Office of the People’s Government of Huachi County) Implementation Regulations on Endowment Insurance for the Farmers Whose Lands are Acquired May 1, 2011 in Huan County (No. 8 [2011] the People’s Government of Huan County) 23 Huan County Opinions of the People’s Government of Huan County on Carrying out the Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in Gansu Province (No. 163 October 30, 2012 [2012] the People’s Government of Huan County)

24 Heshui County Implementation Regulations on Endowment Insurance for the Farmers Whose Lands are Acquired November 17,

Level No. Location Policy Documents Effective Date in Heshui County 2011 Notice of the People’s Government of Zhengning County on Printing and Issuing the Zhengning 25 Administrative Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in June 1, 2011 County Zhengning County (No. 36 [2011] the People’s Government of Zhengning County) Notice of the People’s Government of Pingliang City on Printing and Issuing the Implementation Zhuanglang 26 Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in Pingliang City July 8, 2012 County (No. 78 [2012] the People’s Government of Pingliang City) Notice of the People’s Government of Jingning County on Printing and Issuing the Implementation Jingning 27 Measures for Endowment Insurance for the Farmers Whose Lands are Acquired in Jingning January 1, 2010 County County (Trial Implementation) (No. 30 [2010] the People’s Government of Jingning County)

Appendix IV Entitlement Matrix

Affected Compensation or Type of Impact Entitlement Persons Resettlement Measure

1) Collective land compensation Collective lands without land contractors shall obtain all land compensation fees without land reallocation; lands with land contractors will obtain 20% of public land compensation Village collectives 2) Compensation for attachments owned by village fees, with the remaining 80% going to the collective; the use collectives of compensation fees received by the collective shall be determined through a villager meeting.

When affected natural villages do not make internal land adjustments, farmer households will obtain 80% of land compensation value, with the remaining 20% used for public welfare. Land Acquisition 1) Land compensation and Compensation resettlement subsidies When affected natural villages make internal land adjustments, land compensation and resettlement subsidies for farmer households will be transferred to impacted natural Farmers villages on the basis of the affected land area, and be equally distributed to every household in the villages.

Full compensation will be paid based on time of occupation 2) Temporary land use and the temporarily occupied land will be restored to the original

3) Compensation for young Affected individuals will obtain all compensations for young crops crops

Affected Compensation or Type of Impact Entitlement Persons Resettlement Measure

Farmers meeting the standards of landess households will 4) Social security be entitled to social security

5) Production and livelihood Free training, and employment facilitation development

1). Right to select relocation or cash compensation; 2). Those who choose relocation will be provided by the remover with housing and surrounding facilities (three supplies and one leveling); Compensation and relocation 3). Those who choose cash compensation will obtain demolition compensation at replacement cost, and free Demolition of residential Rural or housing land will be offered by local governments for new houses Urban residents house construction.

Obtaining resettlement subsidies, moving subsidies and Resettlement subsidies, moving rewards according to local compensation standards, and be subsidies and rewards entitled to successful transition.

Compensation standards for Compensation at applicable rates. attachments and trees

Affected Compensation or Type of Impact Entitlement Persons Resettlement Measure

1). Right to select relocation or cash compensation; 2). Those who choose rebuilding relocation will identify a new property with the assistance of the remover and compensation for all losses at replacement cost; Cash compensation/relocation Demolition of 3). Those who chooses cash compensation will obtain the non-residential Unit owner compensation at replacement cost; properties 4). Compensation for production suspension or output reduction will be paid.

Affected workers will receive compensation for lost wage Full-time and temporary workers income; unemployed workers will also be entitled to skills training and job referral services.

1) Right to receive equal compensation for house demolition and land acquisition;

2) They will be identified individually during specific planning;

All affected 3) Getting help and priority from government livelihood programs; Vulnerable groups vulnerable groups 4) They will have priority in new house construction, and receive asistance in the form of manpower and material resources;

5) The civil affairs department will incorporate five-guarantee households, the disabled, and poor and women-headed households in local social security systems, and provide a minimum

Affected Compensation or Type of Impact Entitlement Persons Resettlement Measure

monthly living allowance to them.

6) They will receive priority to participate in project activities such as cooperatives;

7) Single parent families, and household affected by disabilities or other lack of labor force will receive priority to transfer their lands and guarantee their income.

1) There shall be women members in the village committees; women enjoy equal participation rights with men in villager meetings and villager congress;

2) Women’s opinions are taken into account in public opinion surveys related to land acquisition and house demolition; Women All affected women 3) Women are entitled to the same rights as men to receive compensation for land acquisition and house demolition;

4) Jobs generated at the construction and operation stages will be first made available to women, and women are entitled to local employment training and job referral.

1) Priority in resettlement and skills training;

All affected ethnic 2) Priority in receiving employment information and in job selection; Ethnic minorities minorities 3) Participation in consultation meetings for ethnic minority projects, to express their own opinions and suggestions and put forward their own demands;

Affected Compensation or Type of Impact Entitlement Persons Resettlement Measure

4) Relevant policy documents shall be explained in local language, when this is needed; 5) Vulnerable groups in areas inhabited by ethnic minorities, especially poor households, shall be paid close attention to during the course of resettlement.

Infrastructure Infrastructure removal Restored by the construction organize or compensated for at replacement cost owners

Appendix V Summary of Land Occupied for Market Construction

Proposed Number of Planned Floor Prov- Planned Location Acquisition City County Proposed Scope Land Area Land status ince Product Time Markets Area (㎡) (end-of-table (Mu) note)

Collective Trading Dendrobium Zunyi Chishui 1 3000 (1) 6 construction / market nobile land Comprehensi Collective Farmer’s A 500 ve trading (1) 1 construction / market market land Village Collective Gui- Bamboo trading B 500 (1) 1 construction / zhou fungus market land Bijie Zhijin 3 Village Collective Bamboo trading C 500 (1) 1 construction / fungus market land Village Collective Bamboo trading D 500 (1) 1 construction / fungus market land Agricul- Collective tural Chishui Town Luzhou Xuyong 1 1500 Fruit 2.3 construction / trading Xiekou Village land Sichua market n Livestock Liang- Semi-fine Nanwa Town State-owned Jinyang 1 trading 3333 5 / shan wool sheep land market Shubo Village (2)

Proposed Number of Planned Floor Prov- Planned Location Acquisition City County Proposed Scope Land Area Land status ince Product Time Markets Area (㎡) (end-of-table (Mu) note)

Live Zhangjia- animals Malu Town State-owned September Tianshui 1 6666 Beef cattle 10 chuan trading Jinshan Village land 2010 market Wholesale Collective market for Wuzhu Town Dingxi Weiyuan 1 9990 Potato 15 construction / improved Wuzhu Village (3) land varieties

Live Yule Town animals Villagers’ Huachi 1 71262 Sheep Xinbao 107 / trading Demonstration collective land Gansu market Area (4)

Maojing Town Collective A 6666 Sheep Zhuanchengzi 10 construction / Qing- Village (5) land yang Live Quzi Town Collective Huan- animals 3 B 6666 Sheep 10 construction / xian trading Shuangcheng land market Village Yanwu Town Collective C 6666 Sheep Xieguozhui 10 construction / Village land Source: Provinces’ identification tables for land acquisition and demolition, feasibility study reports and that provided by PMO.

Notes: (1) Construction location is not yet determined. (2) Reconstruction of original market place. (3) Transformation of former village theater. (4) The Xinbao Demonstration Area are collective lands of Xinbao Village leased by the People’s Government of Huachi County in September 2002 in the form of “subcontracting”; the first lease term is 20 years, and the rents are disbursed by the Financial Department of Huachi County, which does not belong to acquired State owned lands. The Animal Husbandry and Veterinary Bureau of Huachi County has provided construction land certificates and land leasing agreements. (5) Former livestock distribution point.