RP590 World Bank Financed Public Disclosure Authorized Liaoning Medium Cities Infrastructure Project (LMCIP) Urban Energy Component

Resettlement Policy Framework

Public Disclosure Authorized Public Disclosure Authorized

URBAN PLANNING AND DESIGN INSTITUTE OF LIAONING PROVINCE December, 2007 Public Disclosure Authorized

World Bank Financed Liaoning Medium Cities Infrastructure Project (LMCIP) Urban Energy Component

Resettlement Policy Framework

President Zeng Juequn

Vice President Cheli

General Engineer Wang Guoqing

Director Dong Youju

Persons in Charge Qin Dayong Wang Xianming

Team Member Guo weijiang Zhao xiyuan Liu yimin

Yan guanhua Sun yunquan Yanming

URBAN PLANNING AND DESIGN INSTITUTE OF LIAONING PROVINCE December, 2007 Contents

A.Project Introduction...... 1

B.Principles and Objectives...... 3

C.Process for Preparing and Approving Resettlement Plans ...... 6

D.Estimated Population Displacement ...... 7

E.Legal Framework ...... 8

F.Compensation Standard ...... 9

G.Rehabilitation Measures...... 16

H.Organizational Procedures ...... 18

I.Implementation Process...... 18

J.Grievance Redress Mechanisms...... 18

K.Funding Arrangement ...... 19

L.Participation and Consultation...... 19

M.Monitoring ...... 20

1 A. Project Introduction

1. The objective of the Project is to assist the Borrower in supporting the Project Cities and county town in: (a) enhancing the performance and quality of their existing heating facilities; (b) improving city environment, and air quality.

2. The LMCEP covers the medium-sized municipalities of Yingkou, Anshan, Liaoyang, Benxi and Fushun. Project content of each city see Table 1.

Table 1 List of LMCEP

No. Project Name City/district Construction Content Land Acquisition Fushun Power 17.12mu permanent Plant heat state-owned land supply unit acquisition, and Build 63 heating converting stations (2*300MW) 6.29mu property- 1 Fushun and 2 heating computation stations; enlarging project undefined land; build 30km first-level distribution. and heat 79.23mu temporary network state-owned land construction acquisition 41.9mu permanent plowland acquisition; Construct 1 set of centralize 4.99mu permanent heating supply boiler room, the state-owned land Haicheng scale of which is 3 hot-water acquisition, and 2 central heating Haicheng boilers(58MW); build 26 heating 3.37mu property- project converting stations; pave 19.63km undefined land; first-level hot water distribution. 44.89mu temporary state-owned land acquisition Construct 3 heat sources: Caitun heat source factory (2*58MW 117.21mu permanent Circulating fluidized bed boiler), state-owned land Xihu heat source factory; build acquisition, and Benxi second 3*58MW hot water boiler, and 8.61mu property- 3 Phase central Benxi Wolong heat source factory; build undefined land; heating project 2*29MW hot water boilers; build 51 37.03mu temporary heating converting stations; build state-owned land 34.69km heating supply acquisition distribution. 1. Build new EIC heating distribution, which is rebuilding the distribution from first-level EIC compression pumping station to the main distribution in city zone and some lateral distribution; 22.31mu permanent 2. Rebuild carbonization heating state-owned land distribution Benxi Steel acquisition, and 3. Build a trunk line and some Heat Supply 0.97mu property- 4 Benxi branch lines of residues-flushed Company district undefined land; water heating supply distribution heating project 81.55mu temporary and rebuild some outdated state-owned land distribution. acquisition 4. Expanding present first-level EIC heating distribution compression pumping station and build new heating distribution backwater pumping station. 5. Build a residues-flushed water

1 No. Project Name City/district Construction Content Land Acquisition treatment plant and a first-level compression pumping station; build a compression pumping station in Qianjin community. 34.46mu permanent plantation acquisition; 1.69mu permanent Construct 1 set of heat source state-owned land Benxi Nanfen plant, the scale of which is 3 hot acquisition, and 2mu 5 central heating Nanfen water boilers (29MW); build 13 property-undefined project heating converting stations and land; 40.41mu 17.37km distribution. temporary state- owned land acquisition Build 2 set of heat source plants, one of which is 4 hot water 90.26mu permanent boilers(64MW), the other is 1 hot plowland acquisition; water boiler (29MW); provide 9.9mu permanent Dashiqiao 494.3m2 heating supply area; build state-owned land District central 47 heating converting stations, of acquisition, and 6 Dashiqiao heating project which 35 sets are large heat 1.41mu property- of Yingkou City converting station, and 12 sets undefined land; building heat converting station; 44.49mu temporary pave 39.17km relevant first-level state-owned land hot water distribution and some acquisition second-level. 9.52mu permanent Build 84.59km first-level distribution state-owned land Yingkou and some second-level; build 66 acquisition, and economic Yingkou large heating converting stations, 14.18mu property- 7 development economical and 1 set of relaying pumping undefined land; zone central zone station, and 11 building heat 205mu temporary heating project converting station. state-owned land acquisition 98.05mu permanent Construct 3 hot water state-owned land boilers(58MW), build 16 heating Gongchangling acquisition, and converting stations, 1 relaying District central 0.99mu property- 8 Gongchangling pumping station and 1 interspace heating project undefined land; heating converting station; build of Liaoyang City 95.49mu temporary 37.56km first-level heating supply state-owned land distribution. acquisition Build 1 set of 50000m3 dry 2.4mu permanent Yingkou Gas gasholder; repair the existing state-owned land establishment 50000m3 storage tank and 20000m3 acquisition; 149.1mu 9 Yingkou expansion storage tank; construct gas temporary state- project intelligent management system; owned land rebuild 50km distribution system. acquisition 19.94mu permanent The 1st phase state-owned land central heating Build 83 heating converting acquisition, and project of stations; build a new control centre 1.85mu property- 10 Yingkou Huaneng of thermal net; build 49.1km heating undefined land; Thermal power supply pipeline network. 186.75mu temporary in Yingkou state-owned land acquisition 40.61mu permanent Mining area state-owned land central heating Yangjiazhangzi Build a new 3×29MW hot water acquisition, 2.59mu project in Development supply boilers; Build 13 sets of heat property-undefined 11 Yangjiazhangzi Zone of converting station; build 112.77km land; 20.83mu developement Huludao City 1st level heating pipeline network. temporary state- zone owned land acquisition

2 3. During the pre-project research stage, because the location of some newly- built heating stations and pumping stations (129 huge heating stations, 23 building heating station and 5 pumping stations, acquiring 42.26mu land) are still undecided, and land acquisition and house demolition caused by the newly-built heating stations, pumping stations and their pipelines adjusting scheme are still undecided, so resettlement impact currently is not identified. Therefore, RPF of this project will be taken as guideline of the working out and implementing of RAP, if resettlement impact appears in implementation process, RPF would be performed.

B. Principles and Objectives

4. In World Bank assisted projects, final borrowers or component sponsors are expected to take all necessary measures to mitigate adverse social impacts. The costs associated with mitigation of adverse social impacts on project affected people, such as relocation of affected persons, restoration of livelihoods and the related costs, will be met by the component sponsors. The general guidelines of this RPF are to be followed by all components under Loan involving involuntary resettlement. Where adverse social impacts are identified, plans for resettlement and rehabilitation (R&R) will need to be prepared based on policies and procedures laid out in this framework.

5. Every effort will be made to avoid or minimize the need for land acquisition and resettlement of any components. In the unlikely and exceptional event that any of the components under the project require additional land, houses and other assets becomes unavoidable; the component sponsors shall adopt this RPF.

6. The principle objective of the RPF is to ensure that all Displacement People (DP) 1will be compensated for their losses and provided with rehabilitation measures to

1 “Displaced persons” refers to all the people who, on account of the activities listed above, would have their (1) standard of living adversely affected ; or (2)right, title, interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed temporarily or permanently; (3) access to productive assets adversely affected, temporarily or permanently; or (4)business, occupation, work or place of residence or habitat adversely affected; and

“displaced person” means any of the displaced persons.

3 assist them to improve, or at least maintain, their pre-project living standards and income earning capacity.

7. The PAP is people affected negatively by the project, including mainly the following persons to be identified by the baseline information collected:

(a) The persons whose place of business or employment, and/or agricultural land is in part or in total affected (permanently or temporarily) by the subprojects; (b) Persons whose houses are in part or in total affected by the subprojects; (c) Persons whose business are affected in part or in total (temporarily or permanently) by the subprojects; (d) Persons whose crops (annual and perennial), trees and fixed assets are affected in part or in total by the subprojects.

8. The principles outlined in the World Bank’s OP/BP 4.12 have been adopted in preparing this RPF. In this regard the following principles and objectives would be applied:

(a) Acquisition of land and other assets, and resettlement of people will be minimized as much as possible. Where land acquisition is unavoidable, the project will be designed to minimize adverse impact on the (PAP), especially the vulnerable groups; (b) All PAP will be compensated, relocated and rehabilitated, if required, so as to improve their standard of living, income earning capacity and production capacity, or at least to restore them to pre-Project levels; (c) All PAP residing in, or owing cultivating land, or having resources within the components area of the socioeconomic survey are entitled to be compensated for their losses and/or income rehabilitation. Lack of legal right to the assets lost will not bar the PAP from entitlement to such compensation, rehabilitation and relocation measures; (d) The rehabilitation measures to be provided are (i) compensation at full replacement cost2 for houses and other structures; (ii) compensation for

2 "Replacement cost" is defined as follows: For agricultural land, it is the pre-project or pre-displacement, whichever is higher, market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost of any registration and transfer taxes. For land in urban areas, it is the pre-displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity of the affected land, plus the cost of any registration and transfer taxes. For houses and other structures, it is the market cost of the materials to build a replacement structure with an area and quality similar to or better than those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any labor and contractors’ fees, plus the cost of any registration and transfer taxes. In determining the

4 land acquisition and resettlement subsidy for the affected villages and farmers; (iii) dislocation allowance and transition subsides; (iv) full compensation for crops, trees and other similar agricultural products at market value; and (v) other assets, and appropriate rehabilitation measures to compensate for loss of livelihood; (e) Replacement house-plots, place of business and agricultural land will be as close as possible to the land that was lost, and acceptable to the PAP; (f) Land-for-land is the preferred option. Land-for-land may be substituted by cash provided that: (i) land is not available in the proximity of the subproject area; (ii) PAP willingly accept cash compensation for land and all assets on it; and receive full replacement value without any deductions for depreciation other reasons; and (iii) cash compensation is accompanied by appropriate rehabilitation measures which together with project benefits results in restoration of incomes to at least pre-subprojects levels; (g) The resettlement transition period will be minimized, land-for-land and/or cash compensation provided to the PAP completed prior to the expected start-up date of works in the respective components; (h) Resettlement plans will be implemented following consultations with the PAP, and will have the endorsement of the PAP; (i) The previous level of community services and access to resources will be maintained or improved after resettlement; (j) Any acquisition of, or restriction on access to resources owned or manage by PAP as common property will be mitigated by arrangements ensuring access of those PAP to equivalent resources on a continuing basis; (k) Financial and physical resources for resettlement and rehabilitation will be made available as and when required; (l) Resettlement program will include adequate institutional arrangements to ensure effective and timely design, planning and implementation of resettlement and rehabilitation measures; (m) Adequate arrangements for effective and timely internal and external monitoring will be made on implementation of all resettlement measures; (n) Wherever possible the components will ensure that local residents in the affected areas benefit from the services and facilities created for, or by, the components. (o) Appeal principles

replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures so as to meet the replacement cost standard. Such additional assistance is distinct from resettlement measures to be provided under other clauses in OP 4.12, para. 6.

5 C. Process for Preparing and Approving Resettlement Plans

9. All components involving involuntary resettlement will be required to carry out a socioeconomic survey to determine the impact on the affected area and the affected population. The survey will determine whether or not the component would need preparation of a Resettlement Plan (RP) or an Abbreviated Resettlement Plan (ARP) to offset adverse impacts and access to benefits by the affected communities. The main sequential steps involved in the resettlement approval process are as follows:

(a) Component sponsor furnishes preliminary information report on the proposed component to the LDRC Foreign Capital Utilization Project Office (LUCRPO) and the local authorities at the earliest possible stage. The preliminary information report would contain basic information on: (i) the proposed location of project; (ii) the total area of land required for the physical component , the type of land, current land use and possible impacts of land use changes, and the proposed strategy for land acquisition; and (iii) the people to be affected by the component including those losing home, land or livelihoods; and those deriving benefits (employment, electricity, etc.) from the component; (b) LUCRPO will, after its review and consultation with the local authorities, inform the component sponsor to prepare a resettlement document according to this RPF; (c) For each component that may involve resettlement, WB requires a satisfactory resettlement plan or an abbreviated resettlement plan that is consistent with the provision of the policy framework be submitted to the Bank for approval before the component is accepted for Bank financing. When the number of persons affected by the component exceeds 200, a resettlement plan shall be prepared. Where impacts on the entire affected population are minor, or fewer than 200 people are affected, an abbreviated resettlement plan may be agreed with the borrower. Impacts are considered “minor” if the affected people are not physically displaced and less than 10% of their productive assets are lost; (d) The component sponsor prepares the RP or ARP and submits it to the local authorities, LUCRPO and the World Bank for review/concurrence; (e) The World Bank shall verify the adequacy of the report in light of policies, principles and procedures set out in this RPF, and convey the decision to the component sponsor, and before the report is approved by World Bank, relevant funds could not be distributed; (f) After obtaining concurrence of the World Bank, the component sponsor executes the RP or ARP which would also contain terms and conditions related to implementation of the plans agreed in the RPF.

6 10. The ARP for each component will be prepared by the respective component sponsor in accordance with the provisions of this RPF. The ARP includes the following contents:

(a) a census survey of displaced persons and valuation of assets; (b) description of compensation and other resettlement assistance to be provided; (c) consultations with displaced people about acceptable alternatives; (d) institutional responsibility for implementation and procedures for grievance redress; (e) arrangements for monitoring and implementation; and (f) a timetable and budget.

11. The RP to be submitted thereafter needs not include the policy principles, entitlements, and eligibility criteria, organizational arrangements, arrangements for monitoring and evaluation, the framework for participation, and mechanisms for grievance redress set forth in the resettlement policy framework. The component -specific resettlement plan needs to include baseline census and socioeconomic survey information; specific compensation rates and standards; policy entitlements related to any additional impacts identified through the census or survey; description of resettlement sites and programs for improvement or restoration of livelihoods and standards of living; implementation schedule for resettlement activities; and detailed cost estimate. The RP includes the following contents:

(a) Description of the component; (b) Potential impacts; (c) Socioeconomic studies and baseline census; (d) Additional policy entitlements; (e) Compensation rates for losses; (f) Resettlement measures; (g) Site selection, site preparation, and relocation; (h) Housing, infrastructure, and social services; (i) Implementation schedule; (j) Costs and budget

D. Estimated Population Displacement

12. It is foreseen that the impacts for the newly added alignment under the component of energy project (EP) are limited. During the project implementation, new proposals under the component may be made; or the Resettlement Plan prepared may need to be revised or updated.

7 E. Legal Framework

13. In order to accomplish the task of land acquisition and demolition caused by LMCEP and guarantee the legal rights of affected persons and enterprises and to support project implementation, project policy is prepared according to the following land acquisition and demolition regulations of People’s Republic of China, Liaoning Province and the related municipality and World Bank OP4.12 Involuntary Resettlement Policy. The main legal framework comprises:

Policy and document Effective date Land Administration Law of the People’s Republic of China 2004.8.28 Regulations for the Implementation of the Land Administration Law 2004.8.28 of the People’s Republic of China the Law on Real Estate Administration of the People’s Republic of 1995.1.1 China National the Regulations on Administration of Urban House Dismantling and 2001.11.1 Relocation State Council’s Decision on Deepening, Reforming, and 2004.10.21 Strengthening Land Administration Guo Fa2004No.28 Notice to “Guiding Opinions on Appraisal of Urban House 2004.1.1 Dismantlement (Jian Zhu Fang [2003] No. 234)

Measures of Liaoning Province on implementing the Land Administration Law of the People's Republic of China (Orders of 2002.4.1 Liaoning Provincial Government [2002] No. 149 Measures of Liaoning Province on Urban House Demolition Provincial 2002.12.1 Administration Circular of Liaoning provincial government on land acquisition and compensation task and farmer’s legal rights protection( No. 27, 2004.8.14 2004)

Circular of Printing and Distributing Measures of Urban Yingkou city House Demolition Administration of Yingkou (Ying Zheng 2003.12.24 Fa [2003] No.52) Yingkou economic Circular of Printing and Distributing Measures of House Demolition 2005.2.23 developme Administration of Yingkou (Ying Kai Guan Fa [2005] No.3) nt zone Circular of Printing and Distributing Guiding Opinions on Municipal Strengthening Urban House Demolition of Dashiqiao (Da Zheng Fa 2005.4.1 (Dashiqiao) [2005] No.15) Municipal Circular of Printing and Distributing Measures of House Demolition 2000.4.6 (Haicheng) Administration of Haicheng (Hai Zheng Fa [2007] No.27) Answer about the questions of the suggesting region price and Gongchangl compensation standard of house demolition in the resettlement area 2005.9.16 ing District of Gongchangling (Liao Shi Jian Fa [2005] No.96) Measures of House Demolition Administration of Benxi (Ben Zheng 2002.5.16 Fa [2002] No.86) Municipal Circular of resettlement and compensation regulation for Shanty (Benxi) Town demolition and reconstruction in Benxi (Ben Zheng Fa [2005] 2005.5.24 No.52)

8 Policy and document Effective date Measures of House Demolition Administration of Fushun 2003.7.15 Temporary prescription on relevant issues of collective land Municipal acquisition and resettlement in Fushun (Fu Zheng Fa [1999] 1999.6.14 (Fushun) No.99) Prescription on young crop compensation in Fushun Circular of Printing and Distributing the suggestions on strengthening urban house demolition (Hu Yang Guan 2007.7.9 Wei Fa [2007] No.52) Yangjiazha Resettlement and compensation scheme for former ngzi, Shanty Town and Mining area demolition and Huludao reconstruction in Yangjiazhangzi (project headquarters of 2006.8.10 former Shanty Town and Mining area demolition and reconstruction in Yangjiazhangzi)

World Bank operational policies OP4.12 Involuntary Resettlement 2002.1.1 and its Annex World Bank World Bank operational procedures BP4.12 Involuntary 2002.1.1 resettlement and its Annex

F. Potential Resettlement Impacts and Compensation Standard

14. Impacts of heating stations, of which locations are not sited, are listed in Table- 2. Impacts of pipe network construction are not identified for future alterations and the potential impacts are listed in Table-2.

15. According to the regulation of the legal framework, combined with the actual condition of each component affected municipality, compensation standard of various impacts was laid down. The time of displaced persons eligibility definition is the announcement date of demolition. After the date, the PAP is not permitted to build new houses, enlarge, and reconstruct their houses. Besides, use purpose of the house and land could not be changed. Land leasing, and house leasing and dealings are not allowed. And the people influxes after the certain date are not entitled to compensation.

Though differentiation, land acquisition is not included in all the 11 subprojects in the Liaoning energy component, but included in the other 10.See Table 2.

9 Table 2 Impact List of Land Acquisition

Quantity of huge heating stations, building heating stations and pumping stations Area of land acquired of which the property is not Potential impacts of permanent Potential impacts of temporary Sub-project Name permanently (mu) decided land acquisition land acquisition (property-undecided ) Huge Building Pumping heating heating station station station

Fushun Power Plant heat supply State-owned land, rural collective unit (2*300MW) enlarging project 6.29 18 Rural collective wasteland wasteland and house plots and heat network construction State-owned land and rural Haicheng central heating project 3.37 11 Rural collective wasteland collective wasteland Benxi second Phase central heating State-owned land, rural collective Rural collective dry land and 8.61 36 project wasteland and house plots wasteland Benxi Steel Heat Supply Company State-owned and rural collective 0.97 2 district heating project wasteland Benxi Nanfen central heating State-owned land, rural collective Rural collective cultivated land 2 7 project wasteland and house plots and wasteland

Dashiqiao District central heating State-owned land and rural Rural collective cultivated land 1.41 4 12 project of Yingkou City collective wasteland and wasteland

Demolishing part of economic Yingkou economic development State-owned land, rural collective 14.18 37 1 11 houses and temporarily acquiring zone central heating project wasteland and house plots rural collective wasteland

Demolishing part of economic Gongchangling District central State-owned land and rural 0.99 3 1 houses and temporarily acquiring heating project of Liaoyang City collective wasteland rural collective wasteland

10 The 1st phase central heating project of Huaneng Thermal power 1.85 3 1 State-owned land in Yingkou Mining area central heating project State-owned land, rural collective Temporary acquiring rural in Yangjiazhangzi developement 4.21 10 land and house plots collective wasteland zone Total 43.88 129 5 23 Note: The land area acquired is 160-240 m2 by each huge heating station, 200-400 m2 by each pumping station, and 10 m2 or so by each building heating station (inside residential buildings). However, the locations are not sited, so objects on the ground are not identified.

11 Compensation standard of rural collective land acquisition

According to Land Administration Law of the People’s Republic of China, Guiding Opinions on Improving the System of Land Acquisition, Compensation and Resettlement, Liaoning Province implements Land Administration Law of the People’s Republic of China and Circular of Liaoning provincial government on land acquisition and compensation task and farmer’s legal rights protection and the relative policy and regulation of the affected cities. Land acquisition compensation includes land compensation, resettlement subsidy and young crop compensation. They are calculated as the legal annual output value multiple as given in Table 3. Compensation standard of rural collective land acquisition of each affected cities, see Table 4. Land acquisition tax, see Table 5.

Table 3 Annual output value standard for land acquisition compensation

Municipal Subproject Name City/town Provincial policy Remark policy Fushun Power Plant heat supply unit (2*300MW) enlarging project Fushun and heat network construction Haicheng central heating project Haicheng Annual output value is Benxi second Phase central calculated as the local Benxi heating project comprehensive output Benxi Steel Heat Supply of crop and economy Benxi Company district heating project but not single crop Benxi Nanfen central heating Nanfen District, production. In project Benxi accordance with the Dashiqiao District central heating actual situation of Dashiqiao Liaoning, the annual project of Yingkou City Based on output value per mu of Yinkou provincial Economic and municipalities is not Yingkou economic development policy Techniques less than RMB 2,000, zone central heating project Development county level cities or Area towns are not less than RMB 1500 and in other place not less than Gongchangling District central Gongchangling RMB 1,000. Economic heating project of Liaoyang City District, Liaoyang developed areas also should increase the standard. Mining area central heating Yangjiazhangzi, project in Yangjiazhangzi Huludao developement zone

12 Table 4 Collective land acquisition compensation multiple and standard of each municipality

Annual production Multiple Compensation standard (yuan/mu) City/town Land type value Remark Land Resettlement Land Resettlement Young yuan/mu Subtotal Subtotal Compensation Subsidy Compensation Subsidy Crops wasteland 2000 3 3 6000 6000 Fushun House plot 2000 7 4 11 14000 8000 22000 Haicheng Wasteland 1500 3 3 4500 4500 Wasteland 2000 3 3 6000 6000 Benxi House plot 2000 7 4 11 14000 8000 22000 Nanfen District, Waste land 1500 3 3 4500 4500 Benxi House Plot 1500 7 4 11 10500 6000 16500 Dashiqiao Wasteland 1500 3 3 4500 4500 Yinkou Economic Wasteland 1500 3 3 4500 4500 and Techniques Development Area House plot 1500 7 4 11 10500 6000 16500 Gongchangling District, Liaoyang wasteland 1500 3 3 4500 4500

Yangjiazhangzi, Wasteland 1500 3 3 4500 4500 Huludao House plot 1500 7 4 11 10500 6000 16500

13 Table 5 Land acquisition tax

Land Cultivation Fees paid for use Farmland Fee of New Land Land City/town Acquisition Land type Construction (yuan Administration Tax (yuan /mu) Fee yuan/mu /mu)

Wasteland 37333 Fushun House plot 37333 Haicheng Wasteland 22667 Wasteland 37333 Benxi House plot 37333 Nanfen District, wasteland 18667 Benxi House plot 18667 2% of the total land Dashiqiao Wasteland 18667 acquisition Yinkou Wasteland 22667 compensation Economic and Techniques Development House plot 22667 Area Gongchangling District, Wasteland 16000 Liaoyang

Yangjiazhangzi, Wasteland 16000 Huludao House plot 16000 Land Receiver Finance Bureau Tax Bureau Land Bureau Bureau Circular of adjusting the paid- use policy of new Charging basis construction land (Cai Zong [2006] No.48)

Compensation standard of permanent state-owned land acquisition

The land taken by the project becomes urban infrastructure land. State-owned land can be obtained through land assignment according to national laws.

Compensation standard of temporary land acquisition

The compensation standard for temporary rural collective land acquisition is in accordance with the use and the affected period. Compensation is mainly for young crop compensation and land restoration fee. One planting season affected, young crop compensation of the season would be given. Compensation of temporary rural collective land acquisition, see Table 6. And the time limit for temporary land acquisition is less than half an year.

14 There is not land compensation in temporary state-owned land acquisition. Demolished ground attachments are compensated on the basis of resettlement cost or restored on the basis of its original standard and scale by project sponsors. The fee is put into project construction fund.

Table 6 Compensation of temporary rural collective land acquisition

Young Land Soil fertility Administration Subtotal City/town Land type cropyuan restoration loss fee (Yuan/mu) (Yuan/mu) /mu·season (Yuan/mu) compensation Fushun Wasteland 1500 Wasteland 1500 Haicheng Dry land 1500 Benxi Wasteland 1500 Vegetable 3000 Nanfen District, land Benxi Wasteland 1500 Dry land 1500 Dashiqiao Wasteland 1500 Yinkou Economic and Techniques Wasteland 1500 Development Area Gongchangling District, Wasteland 1500 Liaoyang Yangjiazhangzi, Wasteland 1500 Huludao Village Village Receiver Land user committee/land committee user

Compensation standard of rural residential house demolition

There might be rural residential house demolition in Yingkou economic and techniques development area and Gongchangling District of Liaoyang. According to compensation policy of rural residential house in the two areas, through calculation about resettlement cost of demolished residential houses, compensation standard of the house of various structures is prescribed. Details see Table 7. The property owner of rural house could obtain compensation for house plot, if choosing currency resettlement.

15 Table 7 Compensation standard of rural residential house demolition

Compensation Other compensation standardYuan/m² Rewards City/town for remark Brick- Brick- Moving allowance Temporary resettlement Simple 2 moving concrete wood (Yuan/family subsidyYuan/M •month ahead of time Yinkou Economic and House Techniques 670 640 200 50Yuan/month per person plot is Development given Area at no Gongchangling currency10Yuan/M2 cost District, 850 750 property 6Yuan/M2 per month Liaoyang t20Yuan/M2 Note: temporary resettlement subsidy is calculated by actual transition time, which is less than 12 months.

Compensation standard of affected infrastructure and ground attachments

Compensation for affected ground attachments and public establishment should be distributed according to replacement principle.

G. Rehabilitation Measures

16. The entitlement policy aims to enable PAP to replace the assets they have lost on account of the project, to recover and to improve upon their pre-component living standards within the shortest possible time. In general, the resettlement & rehabilitation (R&R) package would consist of (a) provision for replacement assets or its cash equivalent, where replacement is not feasible; (b) rehabilitation grants to compensate for temporary disruption in life and economic activities; (c) either employment or training, capital and enterprise support for income restoration in case of loss of livelihoods, and (d) provision for replacement of community facilities and services for affected communities.

17. PAP losing house and auxiliary structures will be entitled to the following compensation and rehabilitation measures: (a) PAP whose houses are being acquired by the components will be provided replacement housing within easy communing distance of their existing homes; (b) PAP will be provided with compensation at full replacement value, without any deduction for depreciation, for any structures and fixed assets affected by the components; (c) A pre-determined dislocation allowance according to the prevailing rates of the component areas will also be provided.

16 18. PAP losing agricultural land will be entitled to the following types of compensation and rehabilitation measures:

(a) For the majority of schemes, the land will be reallocated within the village by the village committees. According to the Land Administration Law, in situations where land reallocation is not possible, the PAP will be paid a maxim compensation and resettlement subsidy equivalent to 6 times of the average annual production output value of the land in the previous three years. If this is not sufficient to restore the livelihoods of the PAP to the pre- component level, the compensation/subsidy may be raised to a maximum of 15 times of the average annual output value of the land in the previous three years; (b) If land compensation and resettlement subsidies paid are still insufficient to help the PAP to maintain their original living standards, the resettlement subsidies may be increased upon approval by the People’s Governments. However, the total land compensation and resettlement subsidies shall not exceed 30 times the average annual value of the three years preceding such requisition; (c) These amounts will be paid to the village committees whose land is affected and will be used for (i) increasing land areas under cultivation if land is available; (ii) intensification of agriculture through provision of irrigation, improved agricultural practices, etc.; and (iii) development of non- agriculture based income generation activities. PAP will be compensated for the loss of standing crops, fruit or industrial trees, as well as any fixed assets at market prices; (d) PAP whose land is temporarily taken will be compensated for their loss of income, standing crops and for the cost of soil restoration and damaged infrastructures.

19. If the house and/or structure is only partially affected by the components, the component sponsors may, if it is acceptable to the PAP, acquire the entire structures with full compensation or provide cash compensation for the portion affected as mutually agreed between the PAP and the sponsors.

20. PAP losing business will be entitled to the following compensation and

17 rehabilitation measures: (a) The mechanism for compensation loss of business will be: (i) the provision of alternative business site of equal size and accessibility to customers, satisfactory to the PAP; (ii) cash compensation to the owner for lost business structure reflecting full replacement cost of the structures, without depreciation and the cost of transfer; and (iii) cash compensation for the loss of income during the transition period. (b) PAP will also be provided compensation at full replacement cost, without depreciation for any other fixed assets affected in part or in total by the subprojects.

H. Organizational Procedures

21. Although the primary responsibility for enforcement of the RPF and implementation of the R&R rest with the component sponsors, the oversight responsibility shall rest with Liaoning Provincial Government via LUCRPO in coordination with the respective local government authorities in each of the component areas. LUCRPO, with the authorization of Liaoning Provincial Development and Reform Commission (LDRC), shall also carry out regular monitoring as required by the World Bank, to ensure that the provisions of the RPF are satisfied.

I. Implementation Process

22. A detailed implementation schedule of the various activities to be undertaken will be included in the resettlement plan. Payment of compensation and furnishing of other rehabilitation entitlements (in cash or in-kind), and relocation if that be the case, will be completed at least one month prior to the scheduled start-up date of works in the respective component site.

J. Grievance Redress Mechanisms

23. Since the resettlement work will be carried out with the full participation of the PAP, it is expected that no major grievance issue will arise. However, to ensure that the PAP have avenues for redressing their grievance related to any aspect of land acquisition and resettlement, detailed procedures of grievances redressing have been established in this RPF. The objective is to respond to the complaints of the PAP speedily and in a

18 transparent manner, without resorting to complicated formal channels to the extent possible.

24. The procedures are as follows: (a) Stage 1, any person aggrieved by any aspect of the resettlement document can lodge an oral or written grievance to the Community Committee, township/ town government or Residents Committee, District Government; (b) Stage 2, if the aggrieved person is not satisfied with the decision of the grass-roots authorities at Stage 1, she/he can present the case to the land administration bureau through the highest authorities of the respective component area; (c) Stage 3, if the PAP is still dissatisfied with the decision of the higher authorities, the case may be submitted for consideration by the People’s Court in Accordance with the “Civil Procedure Act”.

K. Funding Arrangement

25. The land acquisition and resettlement compensation are sourced from the counterpart funds. All the funds shall be paid to the PAP before the land is taken and the house is demolished.

L. Participation and Consultation

26. The component sponsors would be required to carry out the participation and consultation of the people in the component areas. A broad acceptance of proposed measures by the PAP – including relocation areas and replacement lands, compensation policies and rates, proposed income restoration measures for R&R – will be a necessary condition for approval of the resettlement plans.

27. PAP will participate throughout the various stages of the planning and implementation of the resettlement plans. For these purposes and prior to the preparation of the resettlement plans, the PAP will be informed of the provisions of this RPF at public meetings. Each affected household or shop will be fully informed by the relevant local governments of their entitlements and rehabilitation choices under the respective resettlement plan.

19 M. Monitoring and Evaluation

28. The internal monitoring of resettlement impacts will be carried out by the component sponsors as an integral part of the implementation of the plans, and will cover the component and post-component periods. It will assess achievements against key implementation targets and objectives and, accordingly, make corrections in the plans where necessary. Periodical monitoring reports will be submitted to LMCEPO. In addition, the external monitoring, arranged under the Resettlement Plan prepared before the project appraisal, will cover all resettlement components under the project.

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