RP1351 V2

World Bank-financed Coastal

Public Disclosure Authorized Economic Belt Infrastructure Construction and Environmental Management Project

Resettlement Action Plan (General Report)

Public Disclosure Authorized

Public Disclosure Authorized

Liaoning Provincial Management Office of World Bank-financed Project

Public Disclosure Authorized July 2012

Contents

1 Overview of the Project ...... 1 1.1 Purpose of the Project ...... 1 1.2 Components...... 1 1.3 Progress of project preparation and resettlement ...... 1 Table 1-2 Progress of project preparation and resettlement ...... 8 1.4 Measures to reduce resettlement ...... 8 1.5 Public Participation ...... 8 1.6 Identification of related projects ...... 8 2 Impacts of the Project ...... 13 2.1 Project impact survey ...... 13 2.2 Affected area ...... 13 2.3 Impacts of the Project ...... 14 2.3.1 Affected population ...... 14 2.3.2 Permanent acquisition of collective land ...... 14 2.3.3 Permanent occupation of state-owned land ...... 14 2.3.4 Impacts of temporary land occupation...... 15 2.3.5 Demolition of residential houses ...... 15 2.3.6 Demolition of non-residential properties ...... 15 2.3.6.1 Demolition of properties of entities ...... 15 2.3.6.2 Demolition of commercial stores ...... 23 2.3.7 Vulnerable groups ...... 25 2.3.8 Affected ethnic minority population ...... 25 2.3.9 Ground attachments ...... 25 3 Socioeconomic Profile of the Project Area ...... 26 3.1 Socioeconomic profile of affected cities and counties ...... 26 3.2 Socioeconomic profile of affected townships ...... 28 3.3 Socioeconomic profile of affected villages ...... 30 3.4 Socioeconomic profile of AHs ...... 31 3.5 Profile of affected entities ...... 33 3.6 Profile of affected commercial stores ...... 35 4 Legal and Policy Framework ...... 37 4.1 Policy framework ...... 37 4.2 Key principles ...... 39 4.3 Overview of project policies ...... 40 4.3.1 Acquisition of collective land and resettlement ...... 40 4.3.2 Permanent occupation of state-owned land ...... 40 4.3.3 Temporary land occupation ...... 40 4.3.4 Demolition of residential houses and resettlement...... 41 4.3.5 Demolition of non-residential properties and resettlement ...... 41 4.3.6 Ground attachments ...... 41 4.3.7 Resettlement of vulnerable groups ...... 41 5 Compensation Rates ...... 42 5.1 Compensation rates for acquisition of rural collective land ...... 42 5.2 Compensation rates for permanent occupation of state-owned land ...... 42 5.3 Compensation rates for temporary occupation of collective land ...... 43 5.4 Compensation rates for demolition of residential houses ...... 44 5.5 Compensation rates for demolition of non-residential properties ...... 44 5.5.1 Compensation rates for demolition of properties of entities ...... 44 5.5.2 Compensation rates for demolition of commercial stores ...... 45 5.6 Compensation rates for ground attachments ...... 46 6 Production and Livelihood Restoration Programs for APs ...... 48 6.1 Compensation and restoration for permanent land occupation ...... 48 6.1.1 Allocation, transfer and assignment of state-owned land ...... 48 6.1.2 Permanent acquisition of collective land ...... 52

World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project 6.2 Restoration program for temporarily occupied land ...... 61 6.3 Compensation and restoration for residential houses ...... 61 6.4 Compensation and restoration for non-residential properties...... 63 6.4.1.1 Compensation and restoration for entities ...... 63 6.4.1.2 Compensation and restoration for commercial stores ...... 65 6.5 Restoration program for affected vulnerable groups ...... 66 6.6 Restoration program for ground attachments ...... 66 7 Organizational Structure and Implementation Progress ...... 67 7.1 Organizational structure ...... 67 7.2 Implementation progress ...... 67 8 Budget and Funding Sources ...... 69 8.1 Budget ...... 69 8.2 Annual investment plan ...... 72 8.3 Funding sources and disbursement ...... 72 9 Public Participation and Consultation, and Grievance Redress ...... 74 9.1 Public participation ...... 74 9.2 Public participation strategy and methods...... 74 9.3 Public participation and consultation activities to date ...... 75 9.4 Information disclosure ...... 77 9.5 Public participation plan for the next stage ...... 77 9.6 Appeal channel and handling ...... 78 10 Monitoring and Evaluation Arrangements ...... 79 10.1 Internal monitoring ...... 79 10.1.1 Implementation procedure...... 79 10.1.2 Scope of monitoring ...... 79 10.1.3 Internal monitoring reporting ...... 79 10.2 Independent external monitoring ...... 79 10.2.1 Independent monitoring agency ...... 79 10.2.2 Monitoring procedure and scope ...... 79 10.2.3 Monitoring indicators ...... 80 10.2.4 Post-evaluation ...... 80 11 Entitlement Matrix ...... 82 Appendix 1: Related Project ...... 88 Appendix 2 :Resettlement Policy Framework ...... 93

ii World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project List of Tables Table 1-1 Scope of construction and key resettlement impacts ...... 3 Table 1-2 Progress of project preparation and resettlement ...... 8 Table 1-3 Measures to reduce resettlement ...... 10 Table 2-1 Organization of DMS and sampling survey of AHs ...... 13 Table 2-2 Summary of affected villages ...... 13 Table 2-3 Summary of affected population...... 16 Table 2-4 Summary of permanently acquired collective land ...... 16 Table 2-5 Summary of permanently occupied state-owned land ...... 17 Table 2-6 Summary of temporarily occupied land ...... 18 Table 2-7 Demolished residential houses on collective land...... 19 Table 2-8 Demolished residential houses on state-owned land ...... 20 Table 2-9 Summary of affected entities ...... 21 Table 2-10 Summary of affected commercial stores ...... 23 Table 2-12 Summary of affected vulnerable groups ...... 24 Table 2-13 Summary of affected ethnic minorities ...... 24 Table 2-14 Summary of affected ground attachments ...... 25 Table 3-1 Key economic indicators of the affected cities/counties ... 27 Table 3-2 Key economic indicators of the affected townships/sub-districts ...... 29 Table 3-3 Key economic indicators of the affected villages ...... 30 Table 3-4 Key economic indicators of AHs ...... 32 Table 3-5 Key economic indicators of affected entities ...... 36 Table 4-1 Summary of project policies ...... 37 Table 5-1 Compensation rates for acquisition of collective land ...... 42 Table 5-2 Compensation rates for permanent occupation of state-owned land ...... 43 Table 5-3 Compensation rates for temporary occupation of collective land ...... 43 Table 5-4 Compensation rates for demolition of residential houses 44 Table 5-5 Compensation rates for demolition of properties of affected entities ...... 44 Table 5-6 Compensation rates for demolition of commercial stores 45 Table 5-8 Compensation rates for ground attachments in City ...... 46 Table 5-9 Compensation rates for ground attachments in Chaoyang City ...... 46 Table 5-10 Compensation rates for ground attachments in City ...... 47 Table 5-11 Compensation rates for ground attachments in ...... 47 Table 6-3 Summary of income losses arising from resettlement 1 ... 48 Table 6-4 Summary of income losses arising from resettlement 2 ... 48 Table 6-1 Impact analysis of acquisition of cultivated land ...... 49 Table 6-2 Analysis of land loss rates ...... 49 Table 6-5 Per capita income loss rates of employees ...... 50 Table 6-6 Population subject to production resettlement in the affected villages ...... 51 Table 6-7 Skills training program in the project area ...... 51 Table 6-8 Information on expected employment resettlement ...... 52 Table 6-9 Analysis of land acquisition impacts ...... 54 Table 6-10 Land acquisition impacts ...... 55

iii World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Table 6-11 Summary of expected resettlement modes ...... 56 Table 6-12 Allocation of land compensation fees and resettlement subsidies by component ...... 59 Table 6-13 Expected resettlement modes for demolition of residential houses by component ...... 63 Table 6-14 Expected resettlement modes for demolition of commercial houses by component ...... 66 Table 7-1 Resettlement agencies and responsibilities ...... 67 Table 7-2 Schedule of LA and HD by component ...... 67 Table 7-3 Detailed LA and HD activities by component ...... 68 Table 8-1 Resettlement budget of the Project (0,000 yuan) ...... 70 Table 8-2 Annual investment plan ...... 72 Table 8-3 Sources of resettlement funds ...... 72 Table 9-1 Public participation process of APs ...... 74 Table 9-2 Public participation process ...... 76 Table 9-3 Policy disclosure process ...... 76 Table 9-4 Public participation plan for the next stage ...... 77 Table 10-1 M&E and reporting schedule ...... 80

iv World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Abbreviations

AH - Affected Household AP - Affected Person DMS - Detailed Measurement Survey DH Displaced Household DP - Displaced Person FGD - Focus Group Discussion LA - Land Acquisition M&E - Monitoring and Evaluation PMO - Project Management Office PRC - People’s Republic of RAP - Resettlement Action Plan RIB - Resettlement Information Booklet WWTP - Wastewater Treatment Plant

Units

Currency unit = Yuan (RMB) 1.00 yuan = $0.15 1 hectare = 15 mu

I World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

1 Overview of the Project

1.1 Purpose of the Project

In order to promote the development of the Liaoning Coastal Economic Belt, accelerate urban infrastructure construction, and improve the environment, the Liaoning Provincial Government has applied for a loan from the World Bank for the construction of the Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project (hereinafter, the “Project”). The Project consists of 7 subprojects in 6 cities/counties (Panjin City, Chaoyang City, Lingyuan City, Suizhong County, Kuandian County and Donggang City), and includes the construction or improvement of 45 urban roads and 7 bridges, the construction of sewage treatment facilities, sewer lines, canals, urban public transit and supporting facilities. The Project will be implemented from 2012 to 2015, where the preparatory work will be performed in 2012, construction will begin in early 2013, and all subprojects will be put into operation in 2015.

1.2 Components

The Project includes 7 subprojects related to road construction and wastewater treatment mainly, including the Lingyuan Road construction Project (Lingyuan Subproject), Chaoyang Road construction Project (Chaoyang Subproject), Donggang Passenger Terminal Road Network Construction Project (Donggang Subproject), Panjin Public Transit Development Project (Panjin Subproject), Kuandian County Old Town Traffic Infrastructure Improvement Project (Kuandian Subproject), Lingyuan Drainage Improvement and Water Recycling Project (Lingyuan Subproject) and Suizhong County Town Drainage System Improvement Project (Suizhong Subproject). The Project involves 11 townships/sub-districts in 4 cities (Lingyuan, Chaoyang, Donggang and Panjin), and two counties (Suizhong and Kuandian Counties), one state-owned farm and 18 villages/communities. In order to minimize the land acquisition (LA) and house demolition (HD) impacts of the Subproject, the subproject owner, implementing agency and design agency optimized the widths and sites of the roads in the Subproject. According to the feasibility study and field investigation in July 2012, the road construction component in the Subproject involves no additional LA and HD, and no affected population.According to the field investigation by the Bank Pre-assessment Mission in July 2012, the LA and HD work of Hekou Road and Beiying East Road was completed in October 2011, and was caused mainly by the Kuandian East Binhe Ecological Management Project. It is necessary to conduct a due diligence investigation on the resettlement work of Hekou Road and Beiying East Road as required by the Bank. （See 《Due Diligence Report on Resettlement for the World Bank-financed Kuandian County Old Town Infrastructure Improvement Project》）

The Lingyuan, Chaoyang, Donggang, Panjin, Lingyuan and Suizhong Subprojects involve LA and HD, and trigger the Bank’s policy on involuntary resettlement (OP4.12). Therefore, this RAP covers the LA and HD activities of these 6 subprojects mainly. See Table 1-1.

1.3 Progress of project preparation and resettlement

In May 2012, the Proposal of the Project was approved by the Liaoning Provincial Development and Reform Commission. Afterwards, the owners of the subprojects appointed Liaoning Urban and Rural Planning & Design Institute to prepare the Feasibility Study Report of the Project. In December 2011, the Bank mission identified

1 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project the Project. On this basis, the owners of the subprojects appointed Liaoning Urban and Rural Planning & Design Institute to revise the Feasibility Study Report of the Project, and started the preparation of the RAP and the Environmental Impact Assessment Report of the Project.

2 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 1-1 Scope of construction and key resettlement impacts Land use Demolition area (m2) Permanent (mu) Temporary (mu) Non-resi No. Catego Subpro Component Scope of construction Reside Unlicens Affected Remarks ry ject dential villages ntial propertie ed State Collective State Collective houses buildings s 2 sections: Wenyi Bridge-East Bridge, 30m Gaozhangzi, wide; East Bridge- 4,400m long, 24m-30m Xinzhangzi, Railway Bridge, 24m wide Road Binhe East Road wide 73.07 110.03 0 0 4114 10405 0 constructi Shanjiadian, Permanently occupying Zhennan, Lingyuan Subproject Lingyuan on roads, housing land and Fangshen, other state-owned land Linghe Logistics Avenue 956m long, 30m wide 15.74 47 0 0 1037.5 3484.2 0 Wenyi Road 1,600m long, 30m wide 0 78.29 0 0 0 266 0 1 Bridge Logistics Bridge 220m long, 41.5m wide 0 0 0 0 0 0 0 The resettlement impacts of the bridge works are constructi included in those of the on Wenyi Bridge 240m long, 35m wide 0 0 0 0 0 0 0 road works. 9,290m long, diameter 1) The storm and sewer

Storm Along all roads 500-1500mm; 7 0 0 0 0 0 0 0 / line works are conducted lines discharge ports, along with roads, and diameter 1200-1500mm involve no LA and HD. 2) The quantities of work Road Sewer Along all roads 472m long, diameter 0 0 0 0 0 0 0 involved in these lines are lines 500mm-1200mm constr totals of different specs. uction Wenhua Road 3,269m long, 30m wide 13.49 147.1 0 0 300 7067 0 \ Zhongxing Street 2,932m long, 30m wide 0 131.94 0 0 1800 0 \ Anling Street 1,435m long, 30m wide 0 64.57 0 0 2400 2200 0 \ Road Liunan Road 1,750m long, 19m wide 0 49.87 0 0 5000 2368 0 Xidayingzi, \ Chaoyang Subproject Chaoyang constructi Liufang Road 1,701m long, 19m wide 0 48.48 0 0 3600 440 0 Henan, \ on Liugang West Road 1,400m long, 19m wide 0 39.9 0 0 2200 354 0 Beishan \ Yangliu Road 1,258m long, 19m wide 0 35.85 0 0 1400 1428 0 \ Inter- branch 3,500m long, 7m wide 0 39.75 0 0 500 0 0 \ 2 road Zhongxing Street Deck width 30m, deck Bridge area 780 m2 0 0 0 0 0 0 0 Deck width 30m, deck The resettlement impacts Bridge Liunan Road Bridge 2 0 0 0 0 0 0 0 area 780 m of the bridge works are

constructi / Deck width 30m, deck included in those of the on 2 Liufang Road Bridge area 780 m 0 0 0 0 0 0 0 road works. Liugang West Road Deck width 30m, deck Bridge area 780 m2; 0 0 0 0 0 0 0 Energy New exemplary road 13km 0 0 0 0 0 0 0 / No resettlement impact

3 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Land use Demolition area (m2) Catego Subpro Permanent (mu) Temporary (mu) Non-resi Affected No. Component Scope of construction Reside dential Unlicens Remarks ry ject ntial ed villages State Collective State Collective houses propertie buildings s saving public transit Public transit Bus bays, bus 18 bus bays, 18 bus 0 0 0 0 0 0 0 / shelters, boards shelters, 30 boards facilities Road signs, markers, Safety & Construction of traffic managem safety & isolating facilities, traffic signal ATC, video 0 0 0 0 0 0 0 / ent management monitoring system, facilities facilities e-police posts 1) The storm and sewer Supply Along all roads 15.28km long, 0 0 0 0 0 0 0 / line works are conducted lines de250-DN400 along with roads, and involve no LA and HD. 2) The quantities of work Storm Along all roads 14.41km long, 0 0 0 0 0 0 0 / involved in these lines are lines d600-d1800 totals of different specs. Sewer Along all roads 11.11km long, d500 0 0 0 0 0 0 0 / lines 1,767.2m long, 30m Haiguan North Road 0 79.52 9 0 2229.16 0 0 wide

Zhanqian Avenue 1,463m long, 48m wide 0 105.34 0 0 1417.02 130 0 Road Xingoubei,

Donggang Subproject Donggang compone Liujiapao, nt Gaotie Street 987m long, 40m wide 0 59.22 0 0 2475.25 0 0 Zhanqian 1st Cross Road 1,085.2m long, 18m 5.2 27.71 0 0 711.28 867 0 wide 2nd Cross Road 1,196m long, 40m wide 0 70.14 0 0 875.26 1410 0 rd 3 3 Cross Road 517.2m long, 30m wide 1.62 23.27 0 0 0 0 0 Reinforced concrete Storm Along all roads pipeline, 10,492m long, 0 0 0 0 0 0 0 / lines 1) These works will be d600-d1800 constructed along with the Reinforced concrete road component, involving

Sewer lines Along all roads pipeline, 9,275m long, 0 0 0 0 0 0 0 / no resettlement impact. 2) d300-d600 The quantities of work involved in these line Gas lines Along all roads PVC pipeline, 7,014m 0 0 0 0 0 0 0 / long, DN200-DN300 construction works are totals of different specs. Composit Along all roads Concrete pipeline, 0 0 0 0 0 0 0 / e lines 7,014m long, C30, total

4 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Land use Demolition area (m2) Catego Subpro Permanent (mu) Temporary (mu) Non-resi Affected No. Component Scope of construction Reside dential Unlicens Remarks ry ject ntial ed villages State Collective State Collective houses propertie buildings s volume 13,801.87m³ 2 automatic lifting vehicles, 3 sprinklers, 1 pipe dredging vehicle, two sets of mobile waste compressing Supportin Purchase of 18 equipment, 3 snow cleaners, 0 0 0 0 0 0 0 / No resettlement impact g vehicles supporting vehicles 1 forklift, 1 dumper, 1 rubber wheel excavator, 1 shovel crawler, 1 double steel wheel roller, 1 pavement repairer, 1 transport vehicle Xinglongtai & Bus Shuangtaizi District / 96.3 0 0 0 0 0 0 Ershilipu terminals branch Terminals Boards and bus

Panjin Subproject Panjin 162 boards, 34 bus shelters for 4 new shelters 0 0 0 0 0 0 0 routes Public Improvement of stop 64 boards, 34 bus 0 0 0 0 0 0 0 transit facilities shelters No resettlement impact 4 supporting Bus GPS/CSM facilities positioning & / 0 0 0 0 0 0 0 scheduling

IC card fare collection / 0 0 0 0 0 0 0 Bus 78 improved buses / 0 0 0 0 0 0 0 improvem 32 additional buses / 0 0 0 0 0 0 0 No resettlement impact ent 40 new buses / 0 0 0 0 0 0 0 Zuoziyuan Street 948m long, 18m wide 25.6 0 0 0 0 0 0 Sleepless Town Kuandian Subproject Kuandian 300m long, 12m wide 5.4 0 0 0 0 0 0 Street LA and HD activities for Tiechang Road 2250m long, 12m wide 40.5 0 0 0 0 0 0 Hekou Road and Beiying Xinhua Street 930m long, 18m wide 25.1 0 0 0 0 0 0 East Road ended in 2011, Road Xuefu Road 1037m long, 12m wide 18.66 0 0 0 0 0 0 No LA and and were caused by the 5 constructi Kuandian East Binhe East Binhe East HD on 635m long, 7m wide 6.67 0 0 0 0 0 0 Ecological Management Road Project. No resettlement East Binhe West 1650m long, 7m wide 17.32 0 0 0 0 0 0 impact on other road Road construction. Anfumen Street 833m long, 18m wide 22.5 0 0 0 0 0 0 Dankuan Road 2531m long, 12m wide 45.6 0 0 0 0 0 0

5 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Land use Demolition area (m2) Catego Subpro Permanent (mu) Temporary (mu) Non-resi Affected No. Component Scope of construction Reside dential Unlicens Remarks ry ject ntial ed villages State Collective State Collective houses propertie buildings s Qingshangou Road 335m long, 12m wide 6.03 0 0 0 0 0 0 Hugouhe Road 540m long, 7m wide 5.7 0 0 0 0 0 0 Beiying East Road 1282m long, 18m wide 33.4 1.2 0 0 0 0 0 Hekou Road 322m long, 24m wide 11.6 0 0 0 0 0 0 Gongpu Road 782m long, 7m wide 8.2 0 0 0 0 0 0 Group Road 1 322m long, 12m wide 5.8 0 0 0 0 0 0 Group Road 2 323m long, 7m wide 3.4 0 0 0 0 0 0 Group Road 3 176m long, 7m wide 1.85 0 0 0 0 0 0 Group Road 4 276m long, 7m wide 2.9 0 0 0 0 0 0 Group Road 5 276m long, 7m wide 2.9 0 0 0 0 0 0 Ergao Road 619m long, 7m wide 0 6.5 0 0 0 0 0 Beiying 2nd Road 684m long, 7m wide 0 7.2 0 0 0 0 0 Beiying West Street 658m long, 7m wide 0 6.9 0 0 0 0 0 West Binhe East 1372m long, 7m wide 0 14.4 0 0 0 0 0 Collective roads will be Road occupied; the completed Chengxi Alley 375m long, 7m wide 0 3.93 0 0 0 0 0 roads will benefit all villagers, so no Zhanqian Alley 368m long, 7m wide 0 3.86 0 0 0 0 0 compensation is involved Fangchan Alley 445m long, 7m wide 0 4.67 0 0 0 0 0 Yalujiang West Road 868m long, 7m wide 0 9.1 0 0 0 0 0

Bridge 80m long, deck area 960 constructi One railway bridge 2 1.44 0 0 0 0 0 0 No LA and HD on m Water supply de75-DN1200, 44.08km 0 0 0 0 0 0 0 Ddrainage long 0 0 0 0 0 0 0 8 transformers, 527 solar These works will be Supportin lamps, 328 ordinary constructed along with g works Road lighting lamps, 42 landscaping 0 0 0 0 0 0 0 roads, and involve no LA lamps and HD DN150-DN800, 7.1km Heating long 0 0 0 0 0 0 0

6 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Land use Demolition area (m2) Catego Subpro Permanent (mu) Temporary (mu) Non-resi Affected No. Component Scope of construction Reside dential Unlicens Remarks ry ject ntial ed villages State Collective State Collective houses propertie buildings s Purchasing 12 vibrating Road maintenance road rollers & 22 sets of 0 0 0 0 0 0 0 sanitation equipment Sewer mains Pipeline layout 13300m 0 0 34 0 0 0 0 / No resettlement impact Drainage Sewer lines 61200m 0 0 0 0 0 0 0 /

Lingyuan Subproject Lingyuan network of No resettlement impact industrial Storm lines 58500m 0 0 0 0 0 0 0 / park Gaozhangzi, Xinzhangzi, 6 Pipeline layout 22000m 0 0 0 150 0 0 0 Zhujiayingzi / Villages A secondary pump Water Occupying reserved recycling house, a storage / 8 0 0 0 0 0 0 / state-owned land tank A secondary pump house, a storage / 0 8 0 0 0 0 0 Zhujiayingzi / Urban tank draina Drainage The resettlement impacts ge and Sewer network 36550m 0 0 0 0 0 0 0 improvem construction of the sewer network are water ent and / included in those of the recycli Storm network sewer 24915m 0 0 0 0 0 0 0 drainage canal ng network construction improvement component. Suizhong Subproject Suizhong East drainage canal Improvement of 3,529m 0.13 0 12.51 202.94 65 666.43 Neidong, Xiyuan & Drainage Xiangfang / canals West drainage canal Improvement of 3,470m 0.99 6.24 19.77 323.9 90 1305.8 Villages, Xiguan 7 Community This component will be constructed in conjunction 610 sewage access with the drainage canal

shafts; 450 storm improvement component, Drainage structures access shafts; 500 / 0 0 0 0 0 0 / and the resettlement storm inlets; 36 water impacts thereof are inlets included in those of the drainage canal improvement component.

7 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Through the careful planning of the Management Office of the Project (hereinafter, the “Liaoning PMO”), and the joint effort of the owners of the subprojects and the design agency, project preparation has progressed successfully. Hohai University was appointed as the RAP preparation agency by the Liaoning PMO. It completed the field investigation on the Project in April 2012, and has completed the draft RAPs of the Project and the subprojects on this basis for Bank review. See Table 1-2.

Table 1-2 Progress of project preparation and resettlement Feasibility Study Project Proposal RAP Report Project name Prepared Prepared Prepared Progress Progress Progress by by by

Liaoning Urban & Rural & Rural Liaoning Urban & Rural Liaoning Urban

World Bank- The Project & Design Planning The & Design Planning In July 2012, the financed Proposal was Feasibility draft RAPs of the University Hohai

Liaoning Coastal completed in March Institute Study Institute Project and the Economic Belt 2012, and approved Report subprojects were Infrastructure by the Liaoning was still completed for Construction and Provincial being Bank review. In

Environmental Development and prepared October 2012,

Management Reform Commission as of May the revised RAPs Project in May 2012. 2012. were completed.

1.4 Measures to reduce resettlement

At the project planning and design stages, the design agency compared different options to minimize local socioeconomic impacts. Where land occupation is unavoidable, wasteland, shoal land and unused state-owned land will be occupied where possible, while the occupation of cultivated land minimized; where HD is unavoidable, the amount of demolition will be minimized through optimization of construction schemes as a key of option comparison. See Table 1-3.

1.5 Public Participation

It is very necessary to conduct public participation at the preparation and implementation stages in order to protect the lawful rights and interests of the APs and the affected entities, reduce grievances and disputes, improve the RAP and resettle the APs properly. At the preparation, and resettlement planning and implementation stages of the Project, great importance was attached to public participation and consultation to solicit comments from government agencies, communities and the APs. 1) During the feasibility study, the subproject PMOs and the design agency solicited comments and suggestions from local authorities, NGOs, township governments and AP representatives on project design and improvement; 2) During the DMS and the socioeconomic survey, the right of information and effective participation of the APs were ensured through information disclosure and field visit; 3) During RAP preparation, resettlement programs were developed based on comments of the affected communities/villages and representatives of the APs. See the RAPs of the subprojects for detailed public participation activities.

1.6 Identification of related projects

Related project refers to a project that is directly associated with the Project in

8 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project function or benefit, namely an extended project constructed using funds other than Bank lending within the range of the Project during the preparation and implementation of the Project. During project design, the owner attached great importance to the identification of related projects. The PMO, the owners of the subprojects and the design agency conducted a correlation analysis of all components. Based on such analysis, the Lingyuan WWTP Project has been identified as a project related to the Lingyuan Subproject by the design agency. This project broke ground in October 2008, and was completed and put into operation in May 2010.This project is expected to have a gross investment of 105.27 million yuan and occupy 84.18 mu of land, including 82.83 mu of farmland and 1.35 mu of collective construction land. This project affects no ground attachment and involves no HD. LA affects 9 households with 37 persons in Fangshen Village, Dongcheng Sub-district. A review of the due diligence of this related project has been included in the RAP of the Lingyuan Subproject (see Appendix 1).

According to the Feasibility Study Report of the Project and the Bank Memorandum: (1) The Donggang Subproject will improve the urban road network of Donggang City, expand urban space, improve the traffic conditions for residents in the urban villages in the subproject area, and provide basic guarantee for the urban village improvement project around the subproject area. An area of 2.2 km2 around the subproject area is the direct service range of the Donggang Subproject, and is related to the Donggang Subproject. According to the information provided by the Donggang PMO, the implementation schedule for the urban village improvement project has not been developed yet. (2) The Chaoyang Subproject will improve the existing road network of , and provide traffic facilities for the ongoing urban village improvement project around the subproject area. An area of 5 km2 in Xidayingzi Town, Longcheng District is the direct service range of the Chaoyang Subproject, and is related to the Chaoyang Subproject. According to the information provided by the Chaoyang PMO, the implementation schedule for the urban village improvement project has not been developed yet. In order that the production level and living standard of the persons affected by the urban village improvement projects within the direct service ranges of the Donggang and Chaoyang Subprojects are not reduced during and after the construction of the subprojects or that they benefit directly from the subprojects, the Donggang Municipal Government, Longcheng District Government, Liaoning PMO and the RAP preparation team have developed this policy framework, which will direct the subsequent LA, HD and resettlement activities of the above urban village improvement projects.（see Appendix 2）.

9 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 1-3 Measures to reduce resettlement Option 1 Option 2 Conclusion No. Category Subproject Component Design Resettlement impacts Design Resettlement impacts Preferred Impact mitigation Ending at a gas station Affecting a gas station with a Avoiding the gas Avoiding demolition of the Avoiding occupation of Wenyi 1 south of Wenyi Road, land area of 5,600 m2 station and adjusting gas station Option 2 5,600 m2 of Road Lingyuan involving its demolition the end point state-owned land Subproject Covering a 3.5m wide, Affecting a drain ditch with a Further optimizing Avoiding affecting the drain Avoiding occupation of Wenyi 2 1,000m long cement land area of 3,500 m2 route and process ditch Option 2 3,500 m2 of Road drain ditch design state-owned land Acquiring 161.81 mu of Acquiring 147.1 mu of Avoiding the acquisition collective land, permanently collective land, occupying of 14.71 mu of land, Wenhua occupying 13,893.4 m2 of 30m wide, 3,269m 9,000 m2 of state-owned 3 33m wide, 3,269m long Option 2 and the occupation of Road state-owned land; affecting 2 long land permanently, affecting 4,893.4 m2 of enterprises with total land area 2 enterprises with total land state-owned land of 7067 m2 area of 7067 m2 Avoiding the acquisition Acquiring 175.86 mu of Acquiring 131.94 mu of of 43.92 mu of

Road construction Zhongxing collective land; demolishing 2,932m long, 30m collective land; demolishing collective land and the 4 2,932m long, 40m wide Option 2 Street residential houses of 13,600 m2 wide residential houses of 1,800 demolition of residential on collective land m2 on collective land houses of 11,800 m2 on collective land Acquiring 73.24 mu of collective Acquiring 64.57 mu of Avoiding the acquisition land; demolishing residential collective land; demolishing of 8.67 mu of collective Chaoyang Anling houses of 13,000 m2 on 1,435m long, 30m residential houses of 2,400 land and the demolition

5 1,435m long, 34m wide Option 2 Subproject Street collective land; affecting an wide m2 on collective land; of residential houses of enterprise with land area of affecting an enterprise with 10600 m2 on collective 2,200 m2 land area of 2200 m2 land Avoiding the acquisition Acquiring 78.74 mu of collective Acquiring 49.87 mu of of 28.87 mu of land; occupying 668 m2 of collective land; demolishing collective land, the state-owned land; demolishing residential houses of 5,000 occupation of 668 m2 of Liunan residential houses of 87,000 m2 1,750m long, 19m m2 on collective land; 6 1,750m long, 30m wide Option 2 state-owned land and Road on collective land; affecting 3 wide affecting 3 enterprises with the demolition of enterprises with total land area total land area of 1700 m2 residential houses of of 1,700 m2 and 4 stores with and 4 stores with total land 82,000 m2 on collective total land area of 668 m2 area of 668 m2 land Acquiring 76.5 mu of collective Acquiring 48.48 mu of Avoiding the acquisition Liufang 1,701m long, 19m 7 1,701m long, 30m wide land; occupying 210 m2 of collective land; demolishing Option 2 of 28.02 mu of Road wide state-owned land; demolishing residential houses of 3,600 collective land, the

10 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Option 1 Option 2 Conclusion No. Category Subproject Component Design Resettlement impacts Design Resettlement impacts Preferred Impact mitigation residential houses of 51,000 m2 m2 on collective land; occupation of 210 m2 of on collective land; affecting an affecting an enterprise with state-owned land and enterprise with land area of 210 land area of 210 m2 and 2 the demolition of m2 and 2 stores with total land stores with total land area residential houses of area of 230 m2 of 230 m2 47,400 m2 on collective land Acquiring 75.8 mu of collective Acquiring 39.9 mu of land; demolishing residential collective land; demolishing Avoiding the acquisition Liugang houses of 1,900 m2 on residential houses of 2,200 8 1,685m long, 30m wide 1,400 long, 19m wide Option 2 of 35.9 mu of collective West Road collective land; affecting 4 m2 on collective land; land stores with total land area of affecting 4 stores with total 354 m2 land area of 354 m2 Avoiding the acquisition Acquiring 57.03 mu of collective of 21.18 mu of Acquiring 35.85 mu of land; occupying 562 m2 of collective land, the collective land; demolishing state-owned land; demolishing occupation of 562 m2 of Yangliu 1,258m long, 19m residential houses of 1,400 9 1,268m long, 30m wide residential houses of 2,600 m2 Option 2 state-owned land and Road wide m2 on collective land; on collective land; affecting 2 the demolition of affecting 2 enterprises with enterprises with total land area residential houses of total land area of 1428 m2 of 1428 m2 1,200 m2 on collective land Relocating 59 households with Relocating 26 households Avoiding demolition of Haiguan residential houses of 5,100 m2 with residential houses of 2,870.84 m2 of 33 10 All-straight road Partly bending Option 2 North Road 2,229.16 m2 households in a densely inhabited area Relocating 14 households with Relocating 14 households Avoiding relocation of a Zhanqian residential houses of 925.82 with residential houses of papermaking machine 11 All-straight road Partly bending Option 2 Donggang Street m2; and a papermaking 925.82 m2 factory Subproject machine factory Relocating 9 households with Relocating 9 households Avoid relocation of 1st Cross residential houses of 711.28 with residential houses of Liujiapao Primary 12 All-straight road Partly bending Option 2 Road m2, and Liujiapao Primary 711.28 m2 School School 3rd Cross Relocating a refrigerated No demolition Avoid relocation of a 13 All-straight road Partly bending Option 2 Road warehouse refrigerated warehouse Panjin Xinglongtai Bordering a road on the Demolishing rural residential Shifting the site Occupying 60.8 mu of state Avoiding demolition of 14 Option 2 Subproject District west houses of 1,500 m2, affecting eastward by 200m -owned farmland of rural residential houses

11 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Option 1 Option 2 Conclusion No. Category Subproject Component Design Resettlement impacts Design Resettlement impacts Preferred Impact mitigation Terminal 20 households with 78 persons; Xinglong Farm Ershilipu of 1,500 m2 occupying 20 mu of collective branch, affecting 45 land, affecting 15 households households with 121 with 47 persons persons Relocating Jinxiang Chemical Affecting 10 households Avoiding relocation of Using a 23,670.2 m2 Shuangtaizi Co., Ltd., a subsidiary of Heyun with 30 persons enterprises and stores Occupying 30,000 m2 plot owned by the 15 District Group, affecting 67 persons; Option 2 of land bus company for Terminal relocating 10 commercial construction stores, affecting 23 persons

Urban drainage and water recycling water and Urban drainage East line option: The water delivery line Involving West line option: The water delivery Involving Reducing temporarily runs from south to north along the marginal no HD line runs from south to north along the no HD occupied land by 110 zone between the west of Chang-Shen marginal zone between the east side of mu Expressway and the east of Hedong New the Daling River and Binhe East Road, Lingyuan Water 16 Town, with a full length of 13km, running with a full length of 11km, running Option 2 Subproject recycling through 2 rivulets, 1 railway and 1 highway, through 2 rivulets and 2 railways, occupying 260 mu of land temporarily, and occupying 150 mu of land temporarily, involving no HD. Construction is difficult due and involving no HD. Construction is to complex terrain. difficult due to complex terrain. Laying a new pipeline Demolishing residential houses Utilizing the existing Demolishing residential Avoiding demolition of East Suizhong in Neidong of 4263.5 m2, affecting 39 Neidong earth canal houses of 1154.2 m2, residential houses of 17 drainage Option 2 Subproject households with 123 persons affecting 17 household with 3109.3 m2 canal 52 persons

12 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

2 Impacts of the Project

2.1 Project impact survey

As required by the Bank and the Liaoning PMO, the owners of the subprojects conducted a 100% detailed measurement survey (DMS) on the households, entities and commercial stores affected by LA, temporary land occupation and HD in the project area during October-November 2011 and March-April 2012, and a sampling socioeconomic survey on the districts, townships and villages/communities affected by LA and HD. During the DMS, all APs were involved. The survey team also conducted extensive consultation with residents, entities and stores on LA, HD and resettlement. See Table 2-1.

Table 2-1 Organization of DMS and sampling survey of AHs No. Category Subproject Location Time Methods Agencies Dongcheng, Lingyuan Chengguan and Oct. – Nov. 2011, 1 Subproject Nanjie Sub-districts, Mar. 11-17, 2012 Lingyuan City Longcheng District, Chaoyang Oct. – Nov. 2011, 2 Chaoyang Subproject Mar. 18-25, 2012 CityXidayingzi Town Aug. – Oct. 2011, 100% DMS, Owners of Road Xincheng and Mar. 29 – Apr. 4, socioeconomic Donggang subprojects, 3 construction Dadong 2012, sampling Subproject affected Sub-districts supplementary survey on AHs, village survey in May 2012 key informant committees, Shuangsheng interviews, RAP Sub-district in Oct. – Nov. 2011, FGDs with preparation Panjin Shuangzitai District Mar. 21-26, 2012, affected village 4 team Subproject and Xinglong Farm supplementary groups Ershilipu branch in survey in May 2012 Xinglong and Urban Lingyuan Oct. – Nov. 2011, 5 Dongcheng drainage Subproject Mar. 11-17, 2012 Sub-districts and water Suizhong Chengjiao Xiang, Oct. – Nov. 2011, 6 recycling Subproject Suizhong Town Mar. 18-24, 2012

2.2 Affected area

LA and HD affects 3 townships, 7 sub-districts, one state-owned farm and 19 villages in 4 cities and one county of Liaoning Province. See Table 2-2.

Table 2-2 Summary of affected villages Township / Category Subproject Affected villages Types of impact sub-district Dongcheng, Gaozhangzi, Permanent occupation of state-owned Road Lingyuan Chengguan and Xinzhangzi, construction land, acquisition of construction Subproject Nanjie Shanjiadian, collective land, demolition of residential

13 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Township / Category Subproject Affected villages Types of impact sub-district Sub-districts Zhennan, houses (including residential houses Fangshen, Linghe on collective and state-owned land), and non-residential properties (including entities and stores) Permanent occupation of state-owned construction land, acquisition of Chaoyang Xidayingzi Xidayingzi, Henan, collective land, demolition of rural Subproject Town Beishan residential houses and non-residential properties (including entities and stores) Permanent occupation of state-owned construction land, acquisition of Xincheng and Donggang Xingoubei, collective land, demolition of rural Dadong Subproject Liujiapao, Zhanqian residential houses and non-residential Sub-districts properties (including entities and stores) Shuangsheng Shuguang Permanent occupation of state-owned Panjin Sub-district, Committee, farmland and construction land Subproject Xinglong Farm Ershilipu branch Permanent occupation of state-owned Xinglong and Xinzhangzi, Lingyuan construction land, acquisition of Urban Dongcheng Gaozhangzi, Subproject collective land; temporary occupation drainage Sub-districts Zhujiayingzi for pipelines and water Chengjiao Neidong, Xiyuan, Acquisition of collective land; recycling Suizhong Xiang, Xiangfang, Xiguan temporary occupation for pipelines Subproject Suizhong Town Community

2.3 Impacts of the Project

According to the DMS, the main types of impact of the Project include: (1) land acquisition/occupation; (2) demolition of residential houses and attachments; (3) demolition of non-residential properties (entities and stores); and (4) ground attachments, etc.

2.3.1 Affected population

The Project affects 6,834 persons in total. The Project affects 1,625 households with 6,264 persons, including 1,212 households with 4,216 persons affected by LA, 540 households with 1,917 persons affected by HD, and 204households with 681persons affected by both LA and HD, 15 entities with 520 persons, and 62 stores with 292 persons. The Project affects 175 households with 570 persons temporarily (temporary land occupation). See Table 2-3.

2.3.2 Permanent acquisition of collective land

1,169.08 mu of collective land will be acquired permanently for the Project, affecting 1,237 households with 4,270 persons, including 336.38 mu of irrigated land (28.77%), 312.66 mu of non-irrigated land (26.74%), 221.77 mu of garden land (18.97%), 289.05 mu of housing land (24.72%), 3.75 mu of ponds (0.32%), 4.8 mu of unused land (0.41%) and 0.67 mu of other land (0.06%). See Table 2-4.

2.3.3 Permanent occupation of state-owned land

213.43 mu of state-owned land will be occupied permanently for the Project,

14 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project affecting 450 persons, in which 151.01 mu will be allocated, 60.8 mu transferred and 1.62 mu assigned. By subproject, the Lingyuan Subproject will occupy 88.81 mu of state-owned land, affecting 16 households with 80 persons and one school with 340 persons; the Chaoyang Subproject will occupy 13.5 mu of state-owned land, affecting one entity with 20 persons; the Donggang Subproject will occupy 6.82 mu of state-owned land, affecting 3 state-owned stores with 10 persons, and military land leased by one enterprise (involving no AP); Panjin Subproject will occupy 96.3 mu of state-owned land, including land of a state-owned farm and a plot of state-owned construction land, affecting 45 households with 121 persons (involving no AP); Lingyuan Subproject will occupy 8 mu of state-owned land, which is reserved for a WWTP, involving no AP. See Table 2-5.

2.3.4 Impacts of temporary land occupation

In the Project, only two pipelines in the urban drainage and water recycling subprojects involve the temporary occupation of 222.52 mu of land, affecting 289 households with 921 persons, in which the Lingyuan Subproject will occupy 34 mu of state-owned dyke, affecting no one, and 150 mu of collective cultivated land, affecting 175 households with 570 persons temporarily, and the Suizhong Subproject will occupy existing collective roads and community roads with a total area of 38.52 mu, affecting no one. See Table 2-6.

2.3.5 Demolition of residential houses

Residential houses on collective land with a total area of49,582.57 m2 will be demolished for the Project, affecting 521 households with 1,830persons, including 27,214.07 m2 in masonry concrete structure (54.89%), 2,294 m2 in masonry tile structure (4.63%), 1,6973.3m2 in masonry timber structure (37.26%) and1106.9 m2 in simple structure (2.23%). See Table 2-7. Residential houses on collective land with a total area of 3,315.8 m2 will be demolished for the Project, affecting 35 households with 139persons, including 1,200 m2 in masonry concrete structure (36.19%), 1503.1 m2 in masonry timber structure (45.33%) and 612.7m2 in simple structure (18.48%). See Table 2-8.

2.3.6 Demolition of non-residential properties

2.3.6.1 Demolition of properties of entities The demolition of properties of entities is caused by the Lingyuan, Chaoyang and Donggang Subprojects, affecting 15 entities, including Starlight Kindergarten, Dongcheng Central Primary School and Furuida Experimental Equipment Co., Ltd., where properties with a total area of 26,609 m2 will be demolished, affecting 520 persons, including 11,775 m2 in masonry concrete structure (44.25%), 1627 m2 in masonry timber structure (6.11%), 10,633 m2 in frame structure (39.96%), 1,707 m2 in simple structure (6.42%) and temporary buildings of 867 m2 (3.26%). See Table 2-9.

15 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 2-3 Summary of affected population Road construction Urban drainage and water recycling Lingyuan Chaoyang Donggang Lingyuan Suizhong Total Panjin Subproject No. Type Subproject Subproject Subproject Subproject Subproject # of # of # of # of # of # of # of Population Population Population Population Population Population Population HHs HHs HHs HHs HHs HHs HHs 1 Permanent impacts 493 2526 431 1626 512 1543 45 121 31 110 57 177 1569 6103 Affected villagers / 1.1 444 1931 412 1476 506 1488 45 121 31 110 54 165 1492 5291 residents LA 300 1283 362 1301 422 1247 45 121 31 110 7 19 1167 4081 HD 168 759 172 571 90 261 0 0 0 0 32 98 462 1689 Both LA and HD 24 111 122 396 6 20 0 0 0 0 7 19 159 546 Unlicensed buildings 0 0 0 0 0 0 0 0 0 0 22 67 22 67 1.2 Public institutions 1 340 5 61 0 0 0 0 0 0 0 0 6 401 1.3 Enterprises 2 39 4 35 3 45 0 0 0 0 0 0 9 119 1.4 Commercial stores 46 216 10 54 3 10 0 0 0 0 3 12 62 292 Temporary land 2 0 0 0 0 0 0 0 0 175 570 0 0 175 570 occupation 3 Total 493 2526 431 1626 512 1543 45 121 206 680 57 177 1744 6673

Table 2-4 Summary of permanently acquired collective land LA (mu) Affected population No. Category Subproject Component Irrigated Non-irrigated Garden Housing Unused Ponds Other Subtotal # of HHs Population land land land land land Binhe East Road / 51.84 / 58.19 / / / 110.03 194 873 Lingyuan 1 Logistics Avenue / / 19 28 / / / 47 32 Subproject 160 Wenyi Road / 70.42 6.39 1.48 / / / 78.29 74 250 Road Wenhua Road / 44.95 83.65 5 / / / 133.6 89 349 construction Zhongxing Street / 62.23 40.7 27.81 / 1.2 / 131.94 86 330 Chaoyang 2 Anling Street / / 35.77 28.8 / / / 64.57 48 140 Subproject Liunan Road / / 4.45 44.22 / 1.2 / 49.87 53 197 Liufang Road / 25.71 / 21.57 / 1.2 / 48.48 54 179

16 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

LA (mu) Affected population No. Category Subproject Component Irrigated Non-irrigated Garden Housing Unused Ponds Other Subtotal # of HHs Population land land land land land Liugang West Road / 24.14 / 15.56 / 1.2 / 40.9 38 124 Yangliu Road / 9.37 13.06 13.42 / / / 35.85 29 112 Inter-district branch / 16 18.75 5 / / / 39.75 15 45 road Haiguan North 72.5 / / 7.02 / / / 79.52 84 Road 238 Zhanqian Avenue 100.83 / / 3.61 0.6 / 0.3 105.34 123 349 Donggang 3 Gaotie Street 48.12 / / 8.1 3 / / 59.22 65 184 Subproject st 1 Cross Road 24.91 / / 2.43 / / 0.37 27.71 30 85 nd 2 Cross Road 66.75 / / 3.24 0.15 / / 70.14 111 311 rd 3 Cross Road 23.27 / / / / / / 23.27 29 80 Xinglongtai District / / / / / / / / / / Panjin Terminal 4 Subproject Shuangtaizi District / / / / / / / / / / Terminal Secondary pump Lingyuan 5 Urban house & storage / 8 / / / / / 8 31 110 Subproject drainage tank and water East drainage canal / / / 0.13 / / / 0.13 1 3 Suizhong 6 recycling West drainage Subproject / / / 0.64 / / / 0.99 6 16 canal Total 336.38 312.66 221.77 274.22 3.75 4.8 0.67 1154.6 1192 4135 Percent (%) 29.13 27.08 19.21 23.78 0.32 0.42 0.06 100.00 / / Note: The affected population here includes the population affected by the acquisition of cultivated land only, and the population affected by the acquisition of housing land is included in that affected by HD.

Table 2-5 Summary of permanently occupied state-owned land Permanently occupied state-owned land (mu) Affected population No. Category Subproject Component Remarks Allocation Transfer Assignment Subtotal # of HHs Population Binhe East Road 73.11 0 0 73.11 17 420 16 households with 80 Road Lingyuan persons affected by the 1 Logistics Avenue 15.7 0 0 15.7 0 0 construction Subproject demolition of residential Wenyi Road 0 0 0 0 0 0 houses on state-owned

17 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

No. Category Subproject Component Permanently occupied state-owned land (mu) Affected population Remarks land, and one school with 340 persons relocated Wenhua Road 8.5 5 / 13.5 1 20 Zhongxing Street 0 0 0 0 0 0 Anling Street 0 0 0 0 0 0 Liunan Road 0 0 0 0 0 0 Chaoyang 2 / Subproject Liufang Road 0 0 0 0 0 0 Liugang West Road 0 0 0 0 0 0 Yangliu Road 0 0 0 0 0 0 Inter-district branch 0 0 0 0 0 0 road Haiguan North Road 0 0 0 0 0 0 Including store Zhanqian Avenue 0 0 0 0 0 0 construction land assigned by 3 stores and Gaotie Street 0 0 0 0 0 0 Donggang military land leased by 3 st Subproject 1 Cross Road 5.2 0 0 5.2 0 0 one enterprise 2nd Cross Road 0 0 1.62 1.62 3 10 3rd Cross Road 0 0 0 0 0 0 Xinglongtai District 0 60.8 0 60.8 45 121 / Panjin Terminal 4 Subproject Shuangtaizi District 35.5 0 0 35.5 0 0 / Terminal Urban Lingyuan Secondary pump 5 8 0 0 8 0 0 / drainage and Subproject house & storage tank water Suizhong East drainage canal 0 0 0 0 0 0 6 / recycling Subproject West drainage canal 0 0 0 0 0 0 Total 146.01 65.8 1.62 213.43 66 571 Percent (%) 68.41 30.83 0.76 100.00 / /

Table 2-6 Summary of temporarily occupied land Temporarily occupied land (mu) Affected population No. Category Subproject Component Nature Remarks Existing road Dyke Cultivated land Subtotal # of HHs Population Urban Sewer mains 0 34 0 34 State-owned 0 0 Lingyuan 1 drainage Drainage network / Subproject 0 0 0 0 / 0 0 and water of industrial park

18 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Temporarily occupied land (mu) Affected population No. Category Subproject Component Nature Remarks Existing road Dyke Cultivated land Subtotal # of HHs Population recycling Water recycling 0 0 150 150 Collective 175 570 East drainage canal 12.51 0 0 12.51 Collective 0 0 / Suizhong Including 6.24 mu of state- 2 West drainage State-owned, Subproject 26.01 0 0 26.01 0 0 owned land and 19.77 mu of canal collective collective land Total 38.52 34 150 222.52 / 175 570 / Percent (%) 17.31 15.28 67.41 100.00 / / / /

Table 2-7 Demolished residential houses on collective land Demolished rural residential houses (m2) Affected population No. Category Subproject Component Masonry Masonry Masonry tile Simple Frame Subtotal # of HHs Population concrete timber 7963 2186 / 256 / 10405 114 491

Lingyuan Logistics 1 3375 108 / 3484.2 37 185 Subproject Avenue / 1.2 80 / / 186 / 266 1 3

200 / 100 / / 300 3 10

1200 / 600 / / 1800 18 57

1600 / 800 / / 2400 24 75

3333 / 1667 / / 5000 50 187

Road 2400 / 1200 / / 3600 36 112 Chaoyang 2 construction Subproject 1467 / 733 / / 2200 22 67

933 / 467 / / 1400 14 50

Inter-district 333 / 167 / / 500 2 6 branch road

1337.5 / 891.66 / / 2229.16 26 75 Donggang 3 555.49 / 370.33 / 491.2 1417.02 14 40 Subproject 1485.15 / 990.1 / / 2475.25 30 88

19 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Demolished rural residential houses (m2) Affected population No. Category Subproject Component Masonry Masonry Masonry tile Simple Frame Subtotal # of HHs Population concrete timber 1st 426.77 / 284.51 / / 711.28 9 26 2nd 525.16 / 350.1 / / 875.26 11 32 3rd / / / / / / / / Xinglongtai District / / / / / / / / Panjin Terminal 4 Subproject Shuangtaizi District / / / / / / / / Terminal

Secondary Lingyuan pump house 5 / / / / / / / / Subproject & storage tank Urban drainage and water East / / 2365.2 0 / 2365.2 27 80 6 recycling drainage Suizhong canal Subproject West drainage / / 7490.5 663.7 / 8154.2 83 246 canal Total 27214.07 2294 18476.4 1106.9 491.2 49582.57 521 1830 Percent (%) 54.89 4.63 37.26 2.23 0.99 100 / /

Table 2-8 Demolished residential houses on state-owned land Demolished residential houses on collective land (m2) Affected population No. Category Subproject Component Masonry concrete Masonry timber Simple Subtotal # of HHs Population Binhe East Road 1200 / / 1200 16 80 Lingyuan 1 Logistics Avenue / / / / / / Subproject Road construction Wenyi Road / / / / / / Panjin Xinglongtai District Terminal / / / / / / 2 Subproject Shuangtaizi District Terminal / / / / / /

20 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Demolished residential houses on collective land (m2) Affected population No. Category Subproject Component Masonry concrete Masonry timber Simple Subtotal # of HHs Population Urban drainage and Suizhong East drainage canal / / / / / / 3 water recycling Subproject West drainage canal / 106.2 37.52 143.72 4 10 Total 1200 106.2 37.52 1343.72 20 90 Percent (%) 89.30 7.90 2.79 100.00 / /

Table 2-9 Summary of affected entities Demolition area (m2) Affected population Nature of No. Category Subproject Component Affected entity Masonry Masonry Temporary Degree of impact business Frame Simple Subtotal Employees Other Subtotal concrete timber buildings Starlight Kindergarten Individual 180 / / / / 180 Business properties 12 / 12 Binhe East Dongcheng Central Road Individual 688 / / 80 / 768 Some classrooms 40 300 340 Lingyuan Primary School 1 Subproject Lingyuan Feiteng Logistics Textile Equipment & Government 144 / / / / 144 Production facilities 2 25 27 Avenue Parts Factory Furuida Experimental Individual 6667 / 6667 / / 13334 Some offices 20 / 20 Wenhua Equipment Co., Ltd. Road Boiler room Individual / / / / / 0 100% demolition 0 / 0 Road construction Xidayingzi Rural Government 20 900 20 900 / 1840 100% demolition 20 / 20 Yangliu Credit Cooperative Road Anyang Labor Service Individual 15 547 15 547 / 1124 100% demolition 15 / 15 Die factory Individual 600 / 600 / / 1200 100% demolition 0 / 0 Chaoyang Liunan Henan Village Office Government 300 / 300 / / 600 100% demolition 5 / 5 2 Subproject Road Xidayingzi Village

Government 800 / 800 / / 1600 100% demolition 5 / 5 Office Highway administration division Liufang directly under the Government 31 180 31 180 / 422 100% demolition 31 / 31 Road municipal government (Xidayingzi branch) Anling Xidayingzi Primary Government 2200 / 2200 / / 4400 Very slight / / / Street School Donggang Zhanqian Haitong Aquatic Some guard rooms 3 Individual 130 / / / / 130 / / / Subproject Avenue Products Co., Ltd. and attachments

21 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Demolition area (m2) Affected population Nature of No. Category Subproject Component Affected entity Masonry Masonry Temporary Degree of impact business Frame Simple Subtotal Employees Other Subtotal concrete timber buildings Xincheng Soft-packed Some production Individual / / / / 746 746 15 30 45 1st Cross Food Factory facilities Road Jinhong Metal Co., Some temporary Individual / / / / 121 121 / / / Ltd. and simple facilities Total 11775 1627 10633 1707 867 26609 / 165 355 520 Percent (%) 44.25 6.11 39.96 6.42 3.26 100.00 / / / /

22 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project 2.3.6.2 Demolition of commercial stores The demolition of commercial stores is caused by the Lingyuan, Chaoyang, Donggang and Suizhong Subprojects. Commercial stores with a total area of 6,956.5 m2 will be demolished, affecting 52 stores with 292 persons, including 6,250 m2 in masonry concrete structure (89.84%), 586 m2 in masonry tile structure (8.42%), 113 m2 in masonry timber structure (1.62%) and 7.5 m2 in simple structure (0.11%). See Table 2-10.

Table 2-10 Summary of affected commercial stores Size Affected stores No. Category Subproject Component Masonry Masonry Masonry Simple Subtotal # persons concrete tile timber Lingyuan Binhe East Road 2612 586 48 / 3246 37 171 1 Subproject Logistics Avenue 886 / / 7.5 893.5 9 45 Liunan Road 668 / / / 668 0 38 Road Chaoyang 2 Liufang Road 354 / / / 354 0 12 construction Subproject Liugang West Road 230 / / / 230 0 4 Donggang 3 2nd Cross Road 1410 / / / 1410 3 10 Subproject Urban East drainage canal / / 65 / 65 2 9 drainage Suizhong 4 West drainage and water Subproject 90 / / / 90 1 3 recycling canal Total 6250 586 113 7.5 6956.5 52 292 Percent (%) 89.84 8.42 1.62 0.11 100.00 / /

23 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 2-11 Summary of affected vulnerable groups Households covered by Households affected Five-guarantee Women-headed Subtotal Type of impact minimum living security by disability households households No. Subproject # of # of # of # of Both LA # of HHs Population Population Population Population Population LA HD Subtotal HHs HHs HHs HHs and HD Lingyuan 1 14 23 2 2 0 0 0 0 16 25 13 3 0 16 Subproject Chaoyang 2 19 23 9 10 6 6 15 18 49 57 49 10 10 49 Subproject Donggang 3 5 6 3 3 0 0 0 0 8 9 7 1 0 8 Subproject Suizhong 4 5 15 0 0 2 6 0 0 7 21 1 7 1 7 Subproject Total 43 67 14 15 8 12 15 18 80 112 70 21 11 80 Percent (%) / 59.82 / 13.39 / 10.71 / 16.07 / 100.00 87.5 26.25 13.75 100 Note: The other subprojects involve no vulnerable group.

Table 2-12 Summary of affected ethnic minorities Minority Demolition Affected Minority Population LA (mu) Percent of population of population population Township / Affected minority No. Subproject Village residential Remarks sub-district # of Popu- # of Popu- Cultivated Housing # of Popu- by LA # of Popu- population Subtotal houses HHs lation HHs lation land land 2 HHs lation HHs lation (%) (m ) The affected Xinzhangzi 540 2300 17 69 35.5 23.32 12.18 3014 27 108 162 9 37 1.61 minority population Lingyuan Dongcheng 1 is the total of that Subproject Sub-district Shanjiadian 800 2200 16 66 18.24 9.82 8.42 2810 26 78 84 6 22 1.00 affected by LA and that by HD Xidayingzi 1500 5104 32 44 165.4 90.71 74.69 8800 88 279 430 8 22 0.43 Chaoyang Xidayingzi 2 Henan 1105 3630 19 23 56.74 25.89 30.85 4600 46 162 137 6 8 0.22 / Subproject Town Beishan 1134 3760 25 36 317.02 262.18 54.84 3800 38 130 734 7 10 0.27 Suizhong Chengjiao 3 Xiangfang 594 1603 183 486 0.29 / 0.29 116.9 1 4 4 1 3 0.19 / Subproject Xiang Total 5673 18597 292.25 724 593.19 411.92 181.27 23140.9 226 761 1551 37 102 0.55 /

24 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

2.3.7 Vulnerable groups

Only the Lingyuan, Chaoyang, Donggang and Suizhong Subprojects involve vulnerable groups. In the affected population, 80 households with 112 persons fall into vulnerable groups, including 43 households covered by minimum living security with 67 persons (59.82%), 14 households affected by disability with 15 persons (13.39%), 68five-guarantee households with 12 persons (10.71 %), and 15 women-headed households with 18 persons (16.07%). Among these househodls, 70 households are affected by LA (87.5%), 21 affected by HD (26.25%), and 11 affected by both LA and HD (13.75%). See Table 2-11.

2.3.8 Affected ethnic minority population

Only the Lingyuan, Chaoyang and Suizhong Subprojects involve ethnic minorities, affecting 37 households with 102 persons in total. The percentage of affected minority population of each subproject is very low, ranging from 1.61% to 0.19%. See Table 2-12.

2.3.9 Ground attachments

The Project affects 20 types of ground attachments and public facilities, including telegraph poles, trees, wells and tombs. Compensation rates for attachments vary from place to place. See Table 2-13.

Table 2-13 Summary of affected ground attachments Urban drainage and Road construction water recycling No. Item Lingyuan Chaoyang Donggang Panjin Lingyuan Suizhong Subproject Subproject Subproject Subproject Subproject Subproject 1 Sunning ground m2 0 4684 5498.08 / / / 2 Enclosing wall m³/m 48.96 2520 1312.75 / / 178.5 3 Fruit tree / 950 4748 1453 / / / 4 Tree / 121 3000 25 18 / 813 5 Telegraph pole / 72 39 20 20 / 171 6 Communication pole / 26 30 15 12 / 42 7 High-tension pole (10kv) / 5 / / / / / 8 Well / 3 101 2 / / / 9 Tomb / 0 / 2 2 / / 10 Greenhouse / 35 29 6 / / / 11 Guard room / 0 107 0 / / / 12 Livestock pen / 0 240 0 / / / 13 Toilet / 0 168 93 / / 9 14 Gate / 0 / 33 / / / 15 Piggery / 0 / 50 / / / 16 Haystack / 0 / 18 / / / 17 Penthouse m2 0 / 11127.48 / / / 18 Temporary buildings m2 0 / 854.86 / / / 19 Cable TV HH 0 / 95 / / / 20 Switching house / 1 / / / / / 21 Pumped well house / 1 / / / / /

25 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

3 Socioeconomic Profile of the Project Area

3.1 Socioeconomic profile of affected cities and counties

The Project involves 3 townships, 7 sub-districts, one state-owned farm and 19 villages/communities in 4 cities (Chaoyang, Lingyuan, Donggang and Panjin Cities), and one county (Suizhong County), in which the road construction subprojects involve 14 villages/communities of one township, 6 sub-districts and one state-owned farm in Chaoyang, Lingyuan, Donggang and Panjin Cities, and the urban drainage and water recycling subprojects involve 7 villages of 2 townships and 2 sub-districts in Lingyuan City and Suizhong County. See Table 2-2. See the RAPs of the subprojects for the socioeconomic profile of the affected townships and villages, and the socioeconomic survey results on AHs. Liaoning Province—Liaoning Province is located in the south of northeastern China, with a land area of 148,000 km2, a costal line of 2,292km and an offshore water surface area of 68,000 km2. The province governs 14 municipalities directly under the provincial government, 17 county-level cities, 27 counties (including 8 minority autonomous counties), and 56 urban districts. There are 56 ethnic minorities in the province, and the Han population accounts for a vast majority. At the end of 2010, the province’s population was 43.747 million, including a nonagricultural population of 28.073 million, accounting for 64.17%, and an agricultural population of 15.674 million, accounting for 35.83%; cultivated area was 5,031,213.19 hectares. In 2010, the province’s grain output was 17.654 million tons, GDP 1.82783 trillion yuan, per capita GDP 41702 yuan, ratio of primary, secondary and tertiary industries 8.9:54:39.1, per capita disposable income of urban residents 17,713 yuan and farmers’ per capita net income 6,908 yuan. Chaoyang City—Chaoyang City is located in western Liaoning, bordering Inner Mongolia on the south, and on the south, and in Liaoning Province on the east, and Chengde and Qinhuangdao in Province on the west. The city governs two districts (Shuangta, Longcheng) and 7 counties (, Kazuo, Jianping, Lingyuan, Chaoyang), and has a land area 20,000 km2, accounting for 1/7 of that of Liaoning Province. At the end of 2010, the city’s population was 3.392 million, including a nonagricultural population of 1.006 million, accounting for 29.66%, and an agricultural population of 2.386 million, accounting for 70.34%, and cultivated area 550,536 hectares. In 2010, the city’s grain output was 2.15 million tons, GDP 65.64 billion yuan, per capita GDP 19,922 yuan, ratio of primary, secondary and tertiary industries 20.69:50.66:28.65, per capita disposable income of urban residents 12,961 yuan and farmers’ per capita net income 6,142 yuan. Lingyuan City—Lingyuan City is affiliated to Chaoyang City, and located in the west of Chaoyang City and the upper Daling River. The city governs 8 towns and 21 Xiangs, with a land area of 3,300 km2. The city’s economy is dominated by characteristic crop cultivation and industry. The city is the largest production base and distributing center of off-season nuisance-free vegetables in northern China, and a province-level demonstration base of farm products; the city’s flower market ranks second in China. The city boasts a solid industrial base, rich and high-quality mineral resources, and further processed farm products. Lingyuan Automotive Industry Corp. and Lingyuan Iron & Steel Group Ltd. are the two leading enterprises in the city. An all-round industrial system of metallurgy, casting, automobile, building materials and light industry has been established. At the end of 2010, the city’s population was 649,807, including a nonagricultural population of 135,269, accounting for 20.82%, an agricultural population of 514,538, accounting for 79.18%, and cultivated area 49,482 hectares. In 2010, the city’s grain

26 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project output was 236,000 tons, GDP 13.39014 billion yuan, per capita GDP 6,171 yuan, ratio of primary, secondary and tertiary industries 19.68:50.04:30.28. per capita disposable income of urban residents 12,150 yuan and farmers’ per capita net income 6,171 yuan. Donggang City—Donggang City is located in the east tip of the , bordering the Yellow Sea on the south and the Yalu River on the east, at the center of the northeastern Asian economic circle. The city is a traffic hub among China, North Korea and South Korea, and the only riverside and coastal frontier city of China. The city governs 15 townships, 3 sub-districts, 3 farms and two province-level development zones, with a population of 633,300, including a minority population of over 60,000, accounting for 10%. There are 15 ethnic minorities in the city. At the end of 2010, the city’s population was 608,500, including a nonagricultural population of 136,300, accounting for 22.40%, and an agricultural population of 472,200, accounting for 77.60%, and cultivated area 91,175 hectares. In 2010, the city’s grain output was 400,000 tons, GDP 33.761 billion yuan, per capita GDP 55,485 yuan, ratio of primary, secondary and tertiary industries 14.54:48.28:37.18, per capita disposable income of urban residents 21,035 yuan and farmers’ per capita net income 9,750 yuan. Panjin City—Panjin City is an emerging city established due to the development of the Liaohe Oilfield. The city is located in southwestern Liaoning Province, bordering the on the south, and , , , Fuxin and Jinzhou on the other sides, with a land area of 4,071 km2, a population of 1.244 million and an urban area of 266 km2, including a built-up area of 52 km2. The city governs two districts (Xinglongtai, Shuangzitai) and two counties (Dawa, Panshan). In 2010, the city’s cultivated area was 158,980 hectares, grain output 1.0513 million tons, and population 1.3125 million, including a nonagricultural population of 1.0833 million. In 2010, the city’s GDP was 92.632 billion yuan, ratio of primary, secondary and tertiary industries 8.8:66.55:24.65, per capita GDP 66976 yuan, per capita disposable income of urban residents 21,035 yuan and farmers’ per capita net income 9,750 yuan. Suizhong County—Suizhong County has a land area of 2,765 km2 and a population of 636,514, and governs 25 townships with 280 administrative villages. The county is located in the round-Bohai-Sea economic circle, and is the west gate of northeastern China, the first county out of the Shanhaiguan Pass, a political, economic, cultural and external exchange junction city between northeastern China and northern China, and the largest county of agriculture of China. The county has a cultivated area of 81,594.41 hectares, an agricultural population of 516,865 and a nonagricultural population of 119,649. The southeast coastal plain is the main grain producing area, with such main crops as corn, sorghum, wheat and paddy rice. The middle hilly area is suitable for the growth of peanut, cotton and other cash crops. The northern mountainous area is a key fruit producing area. In 2010, the county’s regional GDP was 9.02 billion yuan, in which the added value of primary industries was 2.68 billion yuan, that of secondary industries 2.58 billion yuan and that of tertiary industries 3.76 billion yuan, ratio of primary, secondary and tertiary industries 29.7:28.6:41.7, per capita GDP 14,154 yuan, per capita disposable income of urban residents 12,679 yuan and farmers’ per capita net income 6,468 yuan. See Table 3-1.

Table 3-1 Key economic indicators of the affected cities/counties Liaoning Chaoyang Lingyuan Donggang Panjin Suizhong Indicator

P Province City City City City County opulation Total population (0,000) 4374.7 339.2 64.9807 60.85 131.25 63.6514 Men (0,000) 2214.8 183.17 33.9529 30.7 66.19 32.9732 Women (0,000) 2159.9 156.03 31.0278 30.15 65.05 30.6782

27 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Liaoning Chaoyang Lingyuan Donggang Panjin Suizhong Indicator Province City City City City County Nonagricultural population (0,000) 2807.3 100.6 13.5269 13.63 108.33 11.9649

A

gricult ure Cultivated area (ha) 5031213.2 550536 49482 91175 158980 81594.41

Grain output (0,000 tons) 1765.4 215 23.6 40 105.13 330909 GDP (00m yuan) 18278.3 656.4 133.9014 337.61 926.32 90.2

Output value Primary Output value (00m yuan) 1626.77 135.8 26.3521 49.09 81.52 26.8 industries Percent (%) 8.9 20.69 19.68 14.54 8.8 29.7 Secondary Output value (00m yuan) 9870.28 332.5 67.0081 163 616.49 25.8 industries Percent (%) 54 50.66 50.04 48.28 66.55 28.6 Tertiary Output value (00m yuan) 6781.25 188.1 40.5412 125.52 228.3 37.6 industries Percent (%) 37.1 28.65 30.28 37.18 24.65 41.7 Per capita GDP (yuan) 41702 19922 20606.33 55485 66976 14154

I

ncome Per capita disposable income of 17713 12961 12150 16140 21035 12679 urban residents (yuan) Per capita net income of farmers

6908 6142 6171 9235 9750 6468 (yuan)

It can be seen from Table 3-1 that the gross economic volume of Panjin City is the largest, followed by Chaoyang, Donggang and Lingyuan Cities, while Suizhong County is relatively backward. In terms of economic structure, nonagricultural output value accounts about 4/5 of GDP in the 4 cities, showing a high level of nonagricultural industries in the project area. The per capita GDPs of Chaoyang, Lingyuan and Donggang Cities, and Suizhong County are lower than that of Panjin City, but the affected counties and districts differ slightly in per capita disposable income of urban residents and farmers’ per capita net income, where per capita disposable income of urban residents is within 12,150-21,035 yuan and farmers’ per capita net income within 6,142-9,750 yuan, equivalent to or slightly higher than Liaoning’s average values.

3.2 Socioeconomic profile of affected townships

Dongcheng Sub-district—This sub-district is located in Lingyuan City, with its office located at Shanjiadian, has a land area of 50 km2, and governs 3 communities and 7 villages. It has 7,210 households with 21,660 persons in total, including an agricultural population of 13,985, accounting for 64.57%, and a nonagricultural population of 7675, accounting for 35.43%. In 2010, its cultivated area was 13,907 mu, per capita cultivated area 0.99 mu and farmers’ per capita net income 6,800 yuan. Nanjie Sub-district—This sub-district is located in Lingyuan City, with its office located at Municipal Government Road, has a land area of 7.21 km2, and governs 8 communities and one village. It has 10,053 households with 29,033 persons in total, including an agricultural population of 7,467, accounting for 25.72%, and a nonagricultural population of 21566, accounting for 74.28%. In 2010, its cultivated area was 1,964 mu, per capita cultivated area 0.26 mu and farmers’ per capita net income 8,000 yuan. Chengguan Sub-district—This sub-district is located in Lingyuan City, with its office located at South Street, has a land area of 66.3 km2, and governs one community and 7 village. It has 4,721 households with 16,095 persons in total, including an agricultural population of 13,778, accounting for 85.60%, and a nonagricultural population of 2317, accounting for 14.40%. In 2010, its cultivated area was 2,347 mu, per capita cultivated area 0.17 mu and farmers’ per capita net income 10,071 yuan. Xingyuan Sub-district—This sub-district is located in Lingyuan City, with its office located at Dimiao West Village, has a land area of 28.88 km2, and governs 3 communities and 3 villages. It has 3,733 households with 11,232 persons in total, 28 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project including an agricultural population of 6,739, accounting for 60%, and a nonagricultural population of 4493, accounting for 40%. In 2010, its cultivated area was 13,478 mu, per capita cultivated area 1.2 mu, farmers’ per capita net income 6,857 yuan. Xidayingzi Town—This town is located in Chaoyang City, and has 7,443 households with 26,310 persons in total, including an agricultural population of 18,417, accounting for 70%, nonagricultural population 7893, accounting for 30%. Its cultivated area is 38,466, per capita cultivated area 3.49 mu and farmers’ per capita net income 11,021 yuan. Xincheng Sub-district—This sub-district is located in the suburb of Donggang City, has a land area of 47 km2, and governs 4 communities and 5 villages. It has a population of 30,033 persons, including an agricultural population of 29,014, accounting for 96.61%, and a nonagricultural population of 1,019, accounting for 3.39%. Its cultivated area is 2,130 mu, per capita cultivated area 0.07 mu and farmers’ per capita net income 10,206 yuan. Dadong Sub-district—This sub-district is the seat of the Donggang Municipal Government, and the political, economic, cultural and traffic center of Donggang city, has a land area of 6.4 km2, and governs 10 communities, 3 agriculture committees and a fishery committee. It has 22,623 households with 69,008 persons in total, including an agricultural population of 5,643, accounting for 8.18%, and a nonagricultural population of 63,365, accounting for 91.82%. Its cultivated area is 35,343 mu, per capita cultivated area 0.51 mu and farmers’ per capita net income 11,728 yuan. Shuangsheng Sub-district—This sub-district has a land area of 20.2 km2, and governs one community and 4 villages. It has 5,256 households with 15,600 persons in total, including an agricultural population of 8,650, accounting for 55.45%, and a nonagricultural population of 6,950, accounting for 44.55%. Its cultivated area is 27,800 mu, per capita cultivated area 1.78 mu and farmers’ per capita net income 11,023 yuan. Chengjiao Xiang—This Xiang is located is located in northwestern Suizhong County, 1km away from the county government, has a land area of 25 km2. It has 6,377 households with 17,650 persons in total, including an agricultural population of 14,120, accounting for 80%, and a nonagricultural population of 3,530, accounting for 20%. Its cultivated area is 7,999 mu, per capita cultivated area 0.45 mu and farmers’ per capita net income 9,350 yuan. Suizhong Town—This town has a land area of 17.0 km2, and governs 12 communities. It has 39,394 households with 84,533 persons in total, all belonging to nonagricultural population. Its cultivated area is 32,968 mu, per capita cultivated area 0.39 mu and farmers’ per capita net income 7,230 yuan. Table 3-2 Key economic indicators of the affected townships/sub-districts Per Per capita Township / # of Agricultural Cultivated capita net income No. Subproject Population sub-district HHs population area (mu) cultivated of farmers area (mu) (yuan/year) Dongcheng 7210 21660 13985 13907 0.99 6800 Sub-district Lingyuan Nanjie 1 10053 29033 7467 1964 0.26 8000 Subproject Sub-district Chengguan 4721 16095 13778 2347 0.17 10071 Sub-district Chaoyang 2 Xidayingzi Town 7443 26310 18417 38466 3.49 11021 Subproject Donggang Dadong 3 22623 69008 5643 35343 0.51 11728 Subproject Sub-district

29 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Per Per capita Township / # of Agricultural Cultivated capita net income No. Subproject Population sub-district HHs population area (mu) cultivated of farmers area (mu) (yuan/year) Xincheng 9609 30033 29014 2130 0.07 10206 Sub-district Panjin 4 Xinglong Farm 14500 77393 33200 44700 0.58 9045 Subproject Lingyuan Xinglong 5 3733 11232 6739 13478 1.2 6857 Subproject Sub-district Suizhong Chengjiao Xiang 6377 17650 14120 7999 0.45 9350 6 Subproject Suizhong Town 39394 84533 0 32968 0.39 7230

3.3 Socioeconomic profile of affected villages

The Project involves 18 villages in 10 townships in total. The 18 affected villages vary greatly in per capita cultivated area, ranging from 0.17 mu in Zhennan Village to 2.11 mu in the Ershilipu branch of Xinglong Farm. Per capita income is within the range of 7,000-14,800 yuan. Wheat and corn are traditional crops of the affected villages, but each village has its own characteristics. For example, many villages in Lingyuan City deal with flower and greenhouse vegetable cultivation, many villages in Donggang City grow strawberry, and the affected villages in Chaoyang City, Panjin City and Suizhong County deal mainly with secondary and tertiary industries, such as outside employment and individual business. See Table 3-3. Table 3-3 Key economic indicators of the affected villages Per capita Per capita net # of Labor Cultivated No. Subproject Sub-district Village Population cultivated income of farmers HHs force area (mu) area (mu) (yuan/year) 1 Gaozhangzi 935 2800 1000 560 0.2 7000 2 Dongcheng Shanjiadian 800 2200 1300 660 0.3 8000 3 Sub-district Xinzhangzi 540 2300 1360 1300 0.57 7500 4 Lingyuan Fangshen 575 2115 1200 1924 0.91 8000 Subproject Nanjie 5 Zhennan 2867 7953 4100 1327 0.17 12000 Sub-district Chengguan 6 Linghe 612 2044 1155 1391 0.68 9919 Sub-district 7 Xidayingzi 1500 5104 3160 2000 0.39 10080 Chaoyang Xidayingzi 8 Henan 1105 3630 2200 640 0.18 8900 Subproject Town 9 Beishan 1134 3760 2400 2360 0.63 8600 10 Xincheng Xingoubei 860 2650 1500 2100 0.79 12000 11 Donggang Sub-district Liujiapao 1895 5544 3400 3283.58 0.59 11000 Subproject Dadong 12 Zhanqian 523 1668 820 729 0.44 12000 Sub-district Panjin Xinglong Ershilipu 13 1200 3800 2600 5500 2.11 9800 Subproject Farm branch Lingyuan Xinglong 14 Zhujiayingzi 1100 3700 1268 1800 0.49 7000 Subproject Sub-district 15 Xiyuan 872 2317 1158 1650 0.7 6924 Chengjiao 16 Xiangfang 594 1603 801 801 0.5 7315 Suizhong Xiang 17 Subproject Neidong 867 2365 1182 1419 0.6 9340 Suizhong Xiguan 18 3506 8765 4382 / / 5850 Town Community

30 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project 3.4 Socioeconomic profile of AHs

The RAP preparation team conducted a sampling survey on the households affected by LA and HD respectively. The Project will affect 1,625 households with 6,264 persons permanently and 289 households with 921 persons temporarily. The RAP preparation team sampled 270 households affected by LA, accounting for 22.19% of all households affected by LA. These 270 sample households have 996 persons in total, including 461 women, accounting for 46.29%, and average size per family is 3.69. The sample population consists mainly of Han, Mongolian, Hui and Korean people, including 874 Han people, accounting for 94.49%, 5 Mongolians, accounting for 0.54%, 25 Hui people, accounting for 2.70%, and 21 Koreans, accounting for 2.27%. In the sample population, 295 persons have received primary school or below education, accounting for 31.89%, 402 persons have received junior high school education, accounting for 43.46%, 158 persons have received senior high school or secondary technical school education, accounting for 17.08%, and 70 persons have received junior college or above education, accounting for 7.57%. The per capita net income of the sample households is 9,736.50 yuan, in which per capita agricultural income is 2,277.38 yuan, accounting for 23.40%. The per capita cultivated area of the sample households is 0.75 mu. 104 households affected by HD with 341 persons were sampled, accounting for 22.51% of all households affected by HD. These 104 sample households have 341 persons in total, including 166 women, accounting for 48.68%, and average size per family is 3.28. The sample population consists mainly of Han, Mongolian, Hui, Korean and , including 329 Han people, accounting for 96.48%, 2 Mongolians, accounting for 0.59%, 4 Koreans, accounting for 1.17%, 3 Hui people, accounting for 0.88%, and 3 Manchu people, accounting for 0.88%. In the sample population, 97 persons have received primary school or below education, accounting for 28.45%, 152 persons have received junior high school education, accounting for 44.57%, 69 persons have received senior high school or secondary technical school education, accounting for 20.23%, and 23 persons have received junior college or above education, accounting for 6.74%. The per capita housing size of the sample households is 40.41 m2. See Table 3-4.

31 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 3-4 Key economic indicators of AHs Affected by LA Affected by HD Per capita Per capita Percentage Per capita Subproject Educational net agricultural of Ethnic Educational House House Per capita Gender Ethnic group cultivated Gender level income income agricultural group level structure size (m2) size (m2) area (mu) (yuan) (yuan) income (%) PS or below: Han: 210 PS or below: 99 Men: 111 Men: 59 Han: 113 36 Lingyuan Masonry Mongolian: 5 JHS: 71 7039.98 896.95 0.23 12.74 JHS: 47 5670 49.3 Subproject concrete Women: SHS/STS: 41 Women: Mongolian: SHS/STS: 26 Hui: 6 110 JC or above: 10 56 2 JC or above: 6 PS or below: Han: 221 PS or below: 84 Han: 91 Masonry Men: 132 Men: 51 32 2200.77 Chaoyang concrete Korean: 21 JHS: 112 13976.96 1320.82 0.39 9.45 Korean: 4 JHS: 41 31.13 Subproject Women: SHS/STS: 47 Women: SHS/STS: 19 Masonry Hui: 19 Hui: 3 937.83 129 JC or above: 18 47 JC or above: 6 timber PS or below: Masonry PS or below: 75 1397 15 concrete Men: 166 Men: 32 Donggang Masonry Han: 327 JHS: 167 11549 1028.63 0.73 8.91 Han: 63 JHS: 33 744 37.69 Subproject timber Women: SHS/STS: 49 Women: SHS/STS: 9 Frame 233.6 161 JC or above: 36 31 JC or above: 6 PS or below: 23 Men: 28 Panjin JHS: 24 Han: 58 9500.32 4060.82 1.62 40.26 / / / / / / Subproject Women: SHS/STS: 9 30 JC or above: 2 PS or below: 9 Men: 17 Lingyuan JHS: 21 Han: 39 7526.92 2396.15 1.23 26.25 / / / / / / Subproject Women: SHS/STS: 7 22 JC or above: 2 PS or below: Men: 33 Han: 62 14 Suizhong Masonry / / / / / / / JHS: 31 2827.5 43.5 Subproject concrete Women: SHS/STS: 15 Manchu: 3 32 JC or above: 5 PS = primary school; JHS = junior high school; SHS/STS = senior high school / secondary technical school; JC = junior college

32 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

3.5 Profile of affected entities

 Lingyuan Subproject (1) Lingyuan Feiteng Textile Equipment & Parts Factory Founded in 2000, Lingyuan Feiteng Textile Equipment & Parts Factory is located in Gaozhangzi Village, Dongcheng Sub-district, with a floor area of 200 m2. The factory makes loom parts mainly. Through an interview with the business owner, the factory’s annual turnover is about 300,000 yuan, annual net profit 50,000-60,000 yuan and tax payment 10,000-20,000 yuan. However, its relatively remote location and poor road conditions are adverse to its development. Therefore, the business owner supports the Subproject and expects reasonable cash compensation. The factory may switch to another business line or resume operations elsewhere. (2) Starlight Kindergarten Starlight Kindergarten is a private kindergarten founded in 2000, located in Shanjiadian Village, Dongcheng Sub-district, and has a business license awarded by the education committee. Currently, the kindergarten has 2 female teachers and 25 kids. It operates in a two-storied building rebuilt from a private residential building with a total area of 180 m2. Since its nearby road conditions are worsening, parents are unwilling to send their children here. Due to the intensive competition resulting from several private kindergartens founded nearby in recent years, and its poor hardware, it is not running well very, and its monthly net profit is 2,000 yuan only. The head of the kindergarten expects cash compensation, and will use the money to transfer to another business line or open a new kindergarten in the urban area. (3) Dongcheng Central Primary School Dongcheng Central Primary School is located in Dongcheng Sub-district, in close vicinity to Binhe East Road. Most schoolhouses were completed in the 1980s, and the teaching facilities are aged. In recent years, with the increase of children of school age in Dongcheng Sub-district, and the aging of its teaching facilities, its size can no longer meet the education demand, so that some parents have to choose relatively remote primary schools. The government has agreed to establish two new primary schools in Hedong New District with a floor area of 44 mu and 50 mu respectively to offer modern teaching conditions. These primary schools will break ground next year and be completed within one and a half years.  Chaoyang Subproject (1) Furuida Experimental Equipment Co., Ltd. This company manufactures experimental for schools, with a floor area of 15 mu. However, it is not operating very well. It has purchased over 20 excavators for lease to nearby construction sites. Wenhua Road will run through this company’s properties, and occupying about 5 mu of land, affecting some production facilities. There are 3 resettlement options: 1) appraising this company at market price and granting cash compensation; 2) providing a piece of construction land to this company for it to be reestablished elsewhere; and 3) approving it to construct new facilities on 10 mu of additional land. The business owner is willing to accept any of these options. (2) Xidayingzi Rural Credit Cooperative Its current office is leased on collective land, with a total building area of 920 m2 and a workforce of 20. It will be relocated due to the construction of Yangliu Road. According to the interview with its head, it will lease new properties elsewhere in the town, and discuss the rental loss arising from road construction with the proprietor. (3) Anyang Labor Service Co., Ltd.

33 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Its current office is 547 m2 in size and leased under a lease contract with the proprietor. Its office will be fully demolished due to the construction of Yangliu Road. This company will lease another property in the town, and road construction has little impact on it. It will discuss its losses arising from road construction with the proprietor. (4) Highway administration division directly under the municipal government (Xidayingzi branch) The Xidayingzi branch was established in August 1984, with a floor area of 798.33 m2 and a total building area of 179.6 m2. The branch has two vehicles and 25 maintenance workers. It will be fully relocated due to the construction of Liufang Road. The displacer will discuss its resettlement matters with the highway authority. (5) Henan Village Office The construction of Liunan Road will affect the Henan Village Office with a workforce of 5, and this office will be rebuilt elsewhere in the village, which has been put on the working agenda of the town government. (6) Xidayingzi Village Office: The construction of Liunan Road will affect the Xidayingzi Village Office with a workforce of 5, and this office will be rebuilt elsewhere in the village. (7) Xidayingzi Primary School: Xidayingzi Primary School has a building area of over 10,000 m2 and a workforce of 26, including 19 women. The traffic environment surrounding the school is very poor, and pavements have not been hardened and would be muddy on rainy days, making it very difficult for children to travel. One corner of the playground of this school will be occupied for the Project, which will have slight impact on the school’s regular teaching. Both teachers and students support road construction strongly. The school expects that construction be performed during vacations to protect students’ safety, and that construction noise should not affect regular teaching. The school has offered special safety courses to educate children on traffic safety. (8) Boiler room: This boiler room is located on collective land and has been disused, so it can be demolished directly without resettlement. (9) Die factory: This factory is located on collective land and has been disused, so it can be demolished directly without resettlement.  Donggang Subproject (1) Haitong Aquatic Products Co., Ltd. Haitong Aquatic Products Co., Ltd. is a private enterprise founded in 1996 and located in Liujiapao Community, and will be affected by the construction of Zhanqian Street. This company has a floor area of 4,761 m2 and a building area of 2,678 m2, and specializes in aquatic product processing. It has 27 contract workers and about 70 casual laborers, paid 3,000-4,000 yuan and about 3,500 yuan a month each respectively. This company’s annual turnover is about 8 million yuan and annual net profit 1.2 million yuan. Properties of 130 m2 and a pond of this entity will be demolished for the Project. Demolition will not affect its regular production, and it will not have to be relocated. The business owner expects cash compensation. (2) Xincheng Soft-packed Food Factory Xincheng Soft-packed Food Factory is a private enterprise founded in 1996 and located in Liujiapao Community, and will be affected by the construction of 1st Cross Road. This factory has a floor area of about 18 mu and specializes in aquatic product processing. Its land is leased, including 5,046.1 m2 of state-owned land leased from the 93384 Troops of the Chinese People’s Liberation Army, with the remaining being collective land. This factory has 15 regular workers and 30 casual laborers, paid

34 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project 50,000-60,000 yuan and 30,000-40,000 yuan per annum each respectively. This factory’s annual turnover is about 6 million yuan and annual net profit 1 million yuan. Production facilities and attachments with a total area of 746 m2 of this factory will be demolished, affecting its production partly, so it will be relocated. The business owner expects cash compensation, and will lease land nearby to resume operations. (3) Jinhong Metal Co., Ltd. Jinhong Metal Co., Ltd. is a private enterprise founded in 2009 and located in Liujiapao Community, and will be affected by the construction of 1st Cross Road, specializing in the purchase and processing of scrap iron and steel. This company has a floor area of 3.5 mu and a building area of 700 m2, and its land is leased from Liujiapao residents. This company has 25 contract workers and 3 casual laborers, paid 1,500-3,000 yuan per month each on average. This company’s annual turnover is about 8 million yuan and annual net profit 1.4 million yuan. Temporary buildings of 121 m2 and attachments of this company will be demolished for the Project. Demolition will not affect its regular production, and it will not have to be relocated. The business owner expects cash compensation.

3.6 Profile of affected commercial stores

52 commercial stores with 292 persons will be affected by the Lingyuan, Chaoyang, Donggang and Suizhong Subprojects, with a total demolition area of 6,956.5 m2 (see Table 2-10). See the RAPs of these subprojects for details of the affected stores.

35 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 3-5 Key economic indicators of affected entities Annual Workforce Land Type of Expected resettlement No. Location Component Entity income Degree of impact ownership business mode Total M F (0,000 yuan) Logistics Lingyuan Feiteng Textile 1 12 7 5 Collective Individual 30 100% demolition Cash compensation Avenue Equipment & Parts Factory Lingyuan 2 Starlight Kindergarten 2 0 2 Collective Individual 2.4 100% demolition Cash compensation City Binhe East Dongcheng Central Primary 3 Road 40 30 10 State-owned Government / Some classrooms Non-local resettlement School One-time cash Furuida Experimental compensation, local 4 84 70 14 State-owned Individual 300 Some offices Wenhua Equipment Co., Ltd. reconstruction or non-local Road resettlement 5 Boiler room / / / Collective Individual / 100% demolition Cash compensation Xidayingzi Rural Credit 6 20 12 8 Collective Government 200 100% demolition Cash compensation Yangliu Cooperative Road 7 Anyang Labor Service 15 9 6 State-owned Individual 350 100% demolition Cash compensation 8 Chaoyang Liunan Die factory / / / Collective Individual / 100% demolition Cash compensation 9 City Road Henan Village Office 5 4 1 Collective Government 8 100% demolition Cash compensation Highway administration Liufang division directly under the 10 31 25 6 State-owned Government 150 100% demolition Cash compensation Road municipal government (Xidayingzi branch) Anling 11 Xidayingzi Primary School 32 8 24 Collective Government 80 Very slight Cash compensation Street Liunan 12 Xidayingzi Village Office 5 4 1 Collective Government 8 100% demolition Cash compensation Road Zhanqian Haitong Aquatic Products Some guard rooms and 13 97 37 60 Collective Individual 120 Cash compensation Street Co., Ltd. attachments (pond) Xincheng Soft-packed Food Some production 14 Donggang 45 42 3 State-owned Individual 100 Cash compensation Factory facilities and courtyard City 1st Cross Some masonry timber Road 15 Jinhong Metal Co., Ltd. 28 25 3 Collective Individual 140 and simple temporary Cash compensation buildings

36 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

4 Legal and Policy Framework

In order to implement the LA, HD and resettlement work of the Project practically, protect the lawful rights and interests of affected persons and entities, and facilitate the implementation of the Project, the policies of the Project have been formulated in accordance with the laws and regulations of the People’s Republic of China (PRC), Liaoning Province and the affected cities/districts/counties on LA and HD, as well as the Bank’s operational policy OP4.12 on involuntary resettlement. The resettlement work of the Project will be conducted in strict conformity with the policies in the RAP, and any change during implementation has to be approved by the Bank.

4.1 Policy framework

Table 4-1 Summary of project policies Level Policy document Effective date Land Administration Law of the PRC (Order No.28 of the President of the PRC) August 28, 2004 Regulations on the Implementation of the Land Administration Law of the PRC December 27, 1998 (Decree No.256 of the State Council) Decision of the State Council on Deepening the Reform and Rigidly Enforcing October 21, 2004 Land Administration (SC [2004] No.28) Interim Regulations of the PRC on Farmland Occupation Tax (Decree No.511 of January 1, 2008 the State Council) Guidelines on Improving Compensation and Resettlement Systems for Land November 3, 2004 State Acquisition (MLR [2004] No.238) Notice of the State Council on Intensifying Land Control (SC [2006] No.31) August 31, 2006 Measures for Announcement of Land Acquisition (Decree No.10 of the Ministry January 1, 2002 of Land and Resources) Notice of the Ministry of Land and Resources on Further Improving Land June 26, 2010 Acquisition Management Rural Land Contracting Law of the PRC (adopted at the 29th session of the March 1, 2003 Standing Committee of the 9th National People’s Congress) Real Right Law of the PRC (Decree No.590 of the State Council) January 21, 2011 Notice on Issuing the Measures for the Acquisition and Appraisal of Houses on June 7, 2011 State-owned Land (HC [2011] No.77) Notice of the General Office of the Liaoning Provincial Government on the Implementation of Location-based Composite Land Prices for Land Acquisition January 7, 2010 (LPGO [2010] No.2) Notice on Publishing the List of Location-based Land Prices for Land Acquisition February 1, 2010 of Liaoning Province (LLRD [2010] No.16) Measures for the Implementation of Farmland Occupation Tax of Liaoning 2011

Liaoning Province Liaoning Province ([2011] Decree No.249 of the Liaoning Provincial Government) Notice on Offering Handling and Management Services of the Social Endowment Insurance for Urban Residents Properly of Liaoning Province July 26, 2011 (LLSSD [2011] No.13) Interim Measures of Liaoning Province for the Social Security of October 28, 2005 Land-expropriated Farmers (LPGO [2005] No.81) Measures of Liaoning Province for Minimum Living Security for Rural Residents

December 10, 2008 (Decree No.223 of the Liaoning Provincial Government) Measures of Liaoning Province for Minimum Living Security for Urban Residents October 21, 2002 (Decree No.147 of the Liaoning Provincial Government) Measures of Liaoning Province for Rural Five Guarantees (Decree No.218 of the February 1, 2008 Liaoning Provincial Government) Measures of Liaoning Province for the Implementation of the Land June 30, 2004 Administration Law of the PRC

37 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Notice on issuing compensation rates for ground attachments and young crops on collective land within the urban planning area of Chaoyang City (CMGO July 2, 2010 [2010] No.61) Notice on adjusting the guiding subsidy and compensation rates for urban house March 22, 2008 demolition, and regulating property swap (CMGO [2008] No.39) Notice on issuing the Interim Measures of Chaoyang City for Social Security for November 14, 2005

Chaoyang City Chaoyang Land-expropriated Farmers (CMGO [2005] No.48) Opinions on the implementation of trials on new-type rural social endowment July 20, 2007 insurance (CMG [2007] No.24) Notice on the rates of minimum living security for urban and rural residents, and December 27, 2010 support for rural subjects of five guarantee (CMGO [2010] No.166) Notice on adjusting social security policies for land-expropriated farmers (CMG

March 23, 2011 [2011] No.13) Notice on conducting resettlement properly and protecting the interests of July 15, 2011 relocated residents (CMGO [2011] No.130) Notice on issuing the Measures for the Implementation of New-Type Rural June 17, 2011 Social Endowment Insurance of Longcheng District (LDG [2011] No.3) Request on opinions about the implementation of social endowment insurance July 12, 2011 for urban areas in of Longcheng District (LDG [2011] No.45) Notice on issuing the Implementation Rules for the Acquisition and Lingyuan City Lingyuan October 26, 2011 Compensation of Houses on State-owned Land (Interim) (LMGO [2011] No.155) Notice of Lingyuan City on Issuing the Identification and Compensation Measures for the Acquisition of Productive and Operating Properties on October 26, 2011 State-owned Land (Interim) (LMGO [2011] No.154) Notice on issuing the implementation plan of of Lingyuan City for trials of December 22, 2010 new-type rural social endowment insurance (LMGO [2010] No.121) Notice on issuing the Administrative Measures of Liaoning Province for the June 22, 2011 Collection and Use of Land Management Fees (DFB [2011] No.214) Notice on issues concerning payment vouchers for the compensated use of City Dandong January 31, 2012 additional construction land (DFB [2011] No.8) Measures for the Implementation of Minimum Living Security for Urban August 30, 2009 Residents of Dandong City (DMG [2009] No.31) Notice on issuing the Measures for Rural Medical Care of Dandong City (DMGO August 25, 2009 [2009] No.36)

Notice on adjusting the rates of minimum living security for urban and rural residents, support for rural subjects of five guarantee, and identification of urban February 27, 2012 and rural minimum living security households (DMGO [2012] No.4)

Donggang City Donggang Minutes of Executive Meeting of the Municipal Government (Issue 3) July 8, 2011 Notice on conducting land acquisition and house demolition for the Danda April 26, 2011 Express Railway (Qianzhuang segment) (DMGO [2010] No.10) Notice on forwarding the opinions of the municipal finance bureau on improving the fiscal discounting policy for small-grant secured loans, and promoting December 25, 2010 women’s employment and business startup (DMGO [2010] No.36) Compensation Program for Acquisition of Houses in Tufangnan Urban Village August 24, 2011 Notice on improving the rates of minimum living security for urban residents and 2012 support for rural subjects of five guarantee (PMGO [2012] No.15)

Panjin City Panjin Implementation rules of Panjin City on minimum living security for urban January 1, 2004 residents (Decree No.18 of the Panjin Municipal Government) Interim measures of Panjin City for minimum living security for rural residents January 1, 2005 (PMG [2004] No.36)

Notice on the city-wide implementation of new-type rural social endowment 2010 insurance (PMGO [2010] No.37)

Hul Administrative Measures for Minimum Living Security for Urban Residents of October 10, 2003

udao City udao Huludao City Interim Measures for Minimum Living Security for Rural Residents of Huludao July 1, 2005 City Guidelines of the Huludao Municipal Labor and Social Security Bureau on

December 26, 2008 establishing the social security system for land-expropriated farmers

38 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Count

Suizh

ong

y Notice on issuing the Interim Measures for the Administration of Urban House

May 26, 2008 Demolition of Suizhong County

W

Bank

orld Operational Policy OP4.12 on Involuntary Resettlement and appendixes January 1, 2002

Bank Procedure BP4.12 on Involuntary Resettlement and appendixes January 1, 2002

4.2 Key principles

According to the above policy framework, the goal of resettlement is to minimize adverse impacts from LA and HD. Properties of those adversely affected1 will be compensated for at replacement cost2, and assistance will be offered so that they have sufficient opportunities to restore or exceed their former standard of living. The key principles are as follows:  Measures should be taken to minimize negative impacts on displaced persons;  Compensation and resettlement programs are able to improve displaced persons’ standard of living or at least restore it to the pre-project level;  Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs;  All affected properties will be compensated for at full replacement cost;  Illegal buildings and overdue temporary buildings will be compensated for;  Adherence to the principle of resettlement before demolition: Before LA and HD, displaced persons will receive full compensation for their losses, i.e., land and relevant properties will be acquired only if compensation has been paid or a resettlement site and a moving subsidy have been provided;  The borrower shall raise compensation fees for resettlement, including contingency costs;  Determination of eligibility of displaced persons: The deadline for the determination of eligibility of displaced persons is the date of publication of the announcement of LA and HD in the Project. After this date, the displaced persons shall not build, rebuild or expand their properties; shall not change the uses of their properties and land; shall not lease their land, lease, sell or purchase their properties; and any person that moves in after this date shall not qualify as a displaced person;  Property compensation shall be based on appraised value; if the appraised value of a property is lower than the rate specified in the RAP, the latter shall prevail.

1 “Affected persons” refer to the group of persons affected in any of the following ways: (1) their standard of living is adversely affected; (2) their houses, land (including housing land, farmland and grassland), and other fixed and non-fixed assets are adversely affectedly, or their land is occupied temporarily or permanently; (3) they have the right to use, either temporarily or permanently, productive resources that are adversely affected; or (4) their business, occupations, and working or living areas are adversely affected. 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 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.

39 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project 4.3 Overview of project policies

4.3.1 Acquisition of collective land and resettlement

The principles of compensation and resettlement, compensation rates, procedures and supervision mechanism for LA of the Project are based mainly on the Land Administration Law of the PRC, the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration(SC [2004] No.28), the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition(MLR [2004] No.238), the Notice on Issuing the Measures for the Acquisition and Appraisal of Houses on State-owned Land (HC [2011] No.77), the Measures of Liaoning Province for the Implementation of the Land Administration Law of the PRC, the Notice of the General Office of the Liaoning Provincial Government on the Implementation of Location-based Composite Land Prices for Land Acquisition (LPGO [2010] No.2), and the applicable policies of the project cities and districts/counties. The policies for different subprojects will be described here respectively: (1) In acquiring land, compensation should be made according to the original purposes of the land acquired; acquired land is divided into collective farmland, collective construction land and collective unused land. (2) Compensation fees for LA will be paid directly to the affected villages or households. The AHs may attend local labor employment training voluntarily and freely after receiving compensation. Eligible persons may also participate in the endowment insurance for LEFs voluntarily. (3) The compensation rates for LA will be based on the Notice of the General Office of the Liaoning Provincial Government on the Implementation of Location-based Composite Land Prices for Land Acquisition (LPGO [2010] No.2) and the Notice on Publishing the List of Location-based Land Prices for Land Acquisition of Liaoning Province (LLRD [2010] No.16).

4.3.2 Permanent occupation of state-owned land

(1) State-owned residential land, and land for public and commercial institution The state-owned land occupied for the Project is intended for public infrastructure, and has been acquired by gratuitous allocation. If the Project will occupy transferred state-owned land inevitably, the compensation rate will be determined by market appraisal. (2) State-owned farmland The state-owned farmland occupied permanently for the Panjin Subproject will be compensated for by reference to the Notice of the General Office of the Liaoning Provincial Government on the Implementation of Location-based Composite Land Prices for Land Acquisition (LPGO [2010] No.2) and the Notice on Publishing the List of Location-based Land Prices for Land Acquisition of Liaoning Province (LLRD [2010] No.16). (3) State-owned land for military facilities The Donggang Subproject will occupy state-owned land for military facilities permanently. For the state-owned land for military facilities acquired by allocation, the compensation rate will be negotiated between the Donggang Municipal Government and the affected troops.

4.3.3 Temporary land occupation

According to the applicable provincial policy, if rural collective land is to be used temporarily for project construction or geologic survey, the compensation rate is 15% of the location-based composite land price for one year or 20% of the land price for two years.

40 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Pipeline excavation will occupy existing roads and dykes temporarily. Temporarily occupied land will be restored while pipelines are being excavated, and pipelines will be laid using the top jacking method in densely populated areas. No compensation will be paid.

4.3.4 Demolition of residential houses and resettlement

The Project involves the demolition of residential houses on collective and state-owned land. All residential houses demolished for the Project will be compensated for at appraised price, and transition subsidies, moving subsidies and early moving rewards will be paid. The resettlement modes offered under the Project include cash compensation and property swap. ① In case of cash compensation, the compensation rate will be as appraised. ② In case of property swap, the displaced household will receive moving and transition subsidies based on lawful building area, and be provided with resettlement housing in a resettlement community planned and constructed in a unified manner at the price fixed by the pricing authority.

4.3.5 Demolition of non-residential properties and resettlement

The compensation rates for non-residential properties (including entities and stores) are based on the Notice on Issuing the Measures for the Acquisition and Appraisal of Houses on State-owned Land (HC [2011] No.77), and the applicable policies of the affected cities/districts/counties. Non-residential properties demolished for the Project are subject to cash compensation or non-local resettlement. Compensation for non-residential properties demolished for the Project shall include property compensation fees and moving subsidies. A non-residential property demolished for the Project shall be appraised by a legally qualified real estate appraisal agency at replacement cost, and the amount of cash compensation for a demolished property shall be determined based on the benchmark rates of cash compensation published by the government upon issue of the property demolition permit, and by reference to the property’s location, building structure, building area, floor and decoration, etc. Before the real estate appraisal agency determines the market value of any demolished property, it shall consult with the displaced person. Non-residential properties on collective land will be compensated for according to local policies, including house compensation fees and moving subsidies.

4.3.6 Ground attachments

All attachments and special facilities affected by the Project will be compensated for through consultation with competent authorities or reconstructed to the “former function, size and standard” under the budget of the Project. For ground attachments, compensation will be paid directly to proprietors at replacement cost.

4.3.7 Resettlement of vulnerable groups

In addition to the above compensation policies, the affected vulnerable groups will also be entitled to other preferences, such as financial support, job opportunities and social security.

41 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

5 Compensation Rates

The compensation rates for different impacts of the Project have been fixed according to the applicable policies and regulations of the state, Liaoning Province and local governments, and in consultation with the LA and HD implementing agencies, affected sub-district offices/township governments, affected village committees and representatives of the APs.

5.1 Compensation rates for acquisition of rural collective land

According to the Land Administration Law of the PRC, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, the Measures of Liaoning Province for the Implementation of the Land Administration Law of the PRC, the Notice of the General Office of the Liaoning Provincial Government on the Implementation of Location-based Composite Land Prices for Land Acquisition (LPGO [2010] No.2), and other applicable policies and regulations, the location-based composite land price rates for LA of Liaoning Province apply to the Project, and are the sum of compensation fees and resettlement subsidies for ordinary farmland. See Table 5-1.

Table 5-1 Compensation rates for acquisition of collective land Compensation for Housing Area Rate Subproject City young crops land Remarks No. (yuan/mu) (yuan/mu-year) (yuan/mu) Lingyuan and Lingyuan Lingyuan Tier I 50000 1200 50000 / City Subprojects Longcheng Chaoyang District, Tier 55000 1200 55000 / Subproject Chaoyang III City Tier I 60000 1000 60000 / Donggang Donggang Tier Subproject City 40000 1000 40000 / II Only housing land Suizhong Suizhong is acquired, and no Tier I 50000 / 50000 Subproject County cultivated land is involved.

5.2 Compensation rates for permanent occupation of state-owned land

In the Project, state-owned land is acquired by gratuitous allocation, and compensation assignment or transfer. The Chaoyang Subproject will occupy 5 mu of state-owned industrial land of Furuida Experimental Equipment Co., Ltd. This land will be acquired by assignment. The compensation rate will be fixed through market appraisal, but will not be less than the prevailing benchmark land price of the city. The state-owned land occupied for the Donggang Subproject will be acquired by transfer, and the compensation rate will be negotiated between the Donggang Municipal Government and the 93384 Troops of the Chinese People’s Liberation Army, but will not be less than the benchmark rate of 40,000 yuan/mu. The state-owned land occupied for the Panjin Subproject belongs to a state-owned farm, and will be acquired by assignment. The compensation rate will be 72,000 yuan/mu based on the Notice of the General Office of the Liaoning Provincial

42 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Government on the Implementation of Location-based Composite Land Prices for Land Acquisition (LPGO [2010] No.2) and the Notice on Publishing the List of Location-based Land Prices for Land Acquisition of Liaoning Province (LLRD [2010] No.16). Other state-owned land occupied is acquired by gratuitous allocation. See Table 5-2.

Table 5-2 Compensation rates for permanent occupation of state-owned land Type of Benchmark Category Subproject City/county state-owned land rate Remarks occupied (yuan/mu) Existing road This is a public welfare project, and all Lingyuan Lingyuan Residential land / state-owned land occupied will be Subproject City acquired by gratuitous allocation. Education land 5 mu of state-owned industrial land of Furuida Experimental Equipment Co., Longcheng Ltd. will be occupied permanently. Chaoyang District, State-owned 180090 The compensation rate will be fixed Subproject Chaoyang construction land through market appraisal, but will not City be less than the prevailing benchmark Road land price of the city. State-owned Included in appraised price, not construction / commercial land compensated for separately The compensation rate will be Donggang Donggang State-owned negotiated between the Donggang Subproject City land for military 40000 Municipal Government and the facilities affected troops, but will not be less than the benchmark rate State-owned The compensation rate for young 72000 Panjin farmland crops is 2,000 yuan/mu. Panjin City Subproject State-owned The land use right has been obtained, / construction land and no compensation is involved. This subproject will occupy land Lingyuan Lingyuan State-owned Urban / reserved for a WWTP, which will be Subproject City construction land drainage acquired by gratuitous allocation. and water Lingyuan Suizhong recycling / / / Subproject County Note: The Suizhong Subproject will not occupy state-owned land.

5.3 Compensation rates for temporary occupation of collective land

According to the applicable state and provincial policies, if rural collective land is to be used temporarily for project construction or geologic survey, the compensation rate is 15% of the location-based composite land price for one year or 20% of the land price for two years. Through communication with the Feasibility Study Report preparation agency and the the implementing agencies, the intercepting sewer works will be constructed in stages, and the maximum period of occupation will be one year. Temporarily occupied land will be reclaimed by the construction agency in stages.

Table 5-3 Compensation rates for temporary occupation of collective land Subproject Compensation rate (yuan/mu/year) Remarks Lingyuan Subproject 7500 One year Note: The road construction subprojects involve no temporary land occupation.

43 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project 5.4 Compensation rates for demolition of residential houses

The Project involves the demolition of residential houses on collective and state-owned land. According to the local compensation policies for rural residential houses, the compensation rates will be fixed through appraisal by reference to structural type and compensation rates of past similar projects. See Table 5-4.

Table 5-4 Compensation rates for demolition of residential houses Urban drainage and Road construction water recycling Item Lingyuan Chaoyang Donggang Panjin Lingyuan Suizhong Subproject Subproject Subproject Subproject Subproject Subproject Masonry concrete 1360 / / / / 3500

House compensation House Masonry tile 1280 / / / / /

(yuan Simple 180 / / / / 500 Masonry timber / / / / / 3400

/ m Housing land / 82.5 / / / /

2

) Residential building / 1320 / / / / Multi-storied / / 4500 / / /

Single-storied / / 4000 / / / Acquisition subsidy 30 / / / / 10 (yuan/m2) Moving subsidy Other costs Other (yuan/m2) / 20 / 500 / / / (yuan/household) Transition subsidy (yuan/m2-month) / 6 400 600 / / 5

(yuan/month) Early moving reward (yuan/ household) / / 30 10000 / / / (yuan/m2) Note: Compensation rates for houses in all subprojects are based on local market appraised prices, but will not be less than the benchmark rates.

5.5 Compensation rates for demolition of non-residential properties

5.5.1 Compensation rates for demolition of properties of entities

The demolition of properties of entities is caused by the Lingyuan, Chaoyang and Donggang Subprojects, affecting 15 entities. The demolished properties will be compensated for at replacement cost and subsidies paid according to the applicable local policies. See Table 5-5.

Table 5-5 Compensation rates for demolition of properties of affected entities Urban drainage and Road construction water recycling Item Lingyuan Chaoyang Donggang Panjin Lingyuan Suizhong

compensat Subproject Subproject Subproject Subproject Subproject Subproject

(yuan

House House Masonry concrete 1360 1320 / / / /

ion

/ Masonry tile 1280 / / / / /

m

2

) Simple 180 / / / / /

44 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Urban drainage and Road construction water recycling Item Lingyuan Chaoyang Donggang Panjin Lingyuan Suizhong Subproject Subproject Subproject Subproject Subproject Subproject Masonry timber / 1320 / / / / Masonry concrete, / / 2000 / / / single-storied Masonry timber, / / 400 / / / single-storied (temporary) Steel frame, single-storied / / 1000 / / / (temporary) Tile & steel, single-storied / / 1500 / / / (temporary) Simple, single-storied / / 50 / / / (temporary) Composite compensation 500 400 / / / / fees (m2-year) Other costs Other Operating subsidy 400 400 / / / / (m2-year) Subsidy for production or business suspension / / 2000 / / /

(yuan/household) Moving subsidy / / 500 / / / (yuan/household) Note: 1. In Lingyuan and Chaoyang Cities, in case of cash compensation, composite compensation fees for one year will be paid at a time. 2. In Lingyuan and Chaoyang Cities, the transition subsidy rate is increased by 50% after the specified transition period of 12 months, and by 100% beyond 12 months after the specified transition period.

5.5.2 Compensation rates for demolition of commercial stores

The demolition of commercial stores is caused by the Lingyuan, Chaoyang, Donggang and Suizhong Subprojects, affecting 52 stores in total. These stores will be compensated for at replacement cost and subsidies paid according to the applicable local policies. See Table 5-6.

Table 5-6 Compensation rates for demolition of commercial stores Urban drainage and Road construction water recycling Item Lingyuan Chaoyang Donggang Panjin Lingyuan Suizhong Subproject Subproject Subproject Subproject Subproject Subproject

compensation Masonry concrete 1360 1320 / / / 3500

(yuan

House House Masonry tile 1280 / / / / Simple 180 / / / / 500

/

m

2 Masonry timber / 1320 / / / 3400

) Masonry concrete / / 4500 / / / storied building Composite Other costs Other compensation fees 500 400 / / / / (yuan/m2-year) Operating subsidy 400 400 720 or 360 / / / (m2-year)

Subsidy for production / / / / / / or business

45 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Urban drainage and Road construction water recycling Item Lingyuan Chaoyang Donggang Panjin Lingyuan Suizhong Subproject Subproject Subproject Subproject Subproject Subproject suspension (yuan/m2) Moving subsidy (yuan/household)/ / / 500 / / 10 (yuan/m2) Transition subsidy / / / / / 10 (yuan/month·m2) Note: In Donggang City, the operating subsidy rate for trading and service stores is 720 yuan/m2-year, and that for productive and storage stores 360 yuan/m2-year.

5.6 Compensation rates for ground attachments

All ground attachments and public facilities affected by the Project will be compensated for replacement cost, and compensation rates vary from city to city. See Table 5-7, Table 5-8, Table 5-9 and Table 5-10.

Table 5-7 Compensation rates for ground attachments in Lingyuan City Compensation No. Attachment Unit Specification rate (yuan/unit) 1 Communication pole / Wooden communication pole 200 2 Telegraph pole / Cement telegraph pole 500 3 High-tension pole (10kv) / \ 140000 4 / 9-12 years 100 Apricot 5 / 13-16 years 150 6 / 6-7 years 80 Pear 7 Tree / 8 years 150 8 / <10cm 50 Poplar 9 / 10-20cm 150 Diameter 2-5cm at 1.5m from 10 Other / 8 ground 11 Switching house / \ 3000 12 Pumped well house / \ 2800 13 Well / \ 3000 14 Enclosing wall m³ \ 250 15 Warm / Masonry timber structure, 80*4.5 120 Greenhouse 16 Cold / Simple plastic greenhouse, 40*4.5 50 17 Leek / \ 70000 18 Greenhouse Cold Spinach / \ 90000 19 attachments Gladiolus / \ 90000 20 Warm Lily / \ 160000

Table 5-8 Compensation rates for ground attachments in Chaoyang City Compensation No. Attachment Unit Specification rate (yuan) 1 Wooden 7m 120 Communication pole 2 Cement 7m 200 3 Cement telegraph pole / 6m 200

46 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Compensation No. Attachment Unit Specification rate (yuan) 4 Cm (dia.) <1cm 5 5 Date tree Cm (dia.) 1-2cm 40 6 Cm (dia.) 3cm or above 50 7 Cm (dia.) <1cm 5 8 Pear tree Cm (dia.) 1-2cm 40 9 Cm (dia.) 3cm or above 50 10 Cm (dia.) <1cm 5 11 Apple tree Cm (dia.) 2-3cm 40 12 Cm (dia.) 3cm or above 50 13 Cm (dia.) 2.1-2.5cm 80 14 Grape Cm (dia.) 3.1-3.5cm 100 15 Cm (dia.) 3.5cm or above 100 16 Earth well / 10m 1000 17 Pumped well / >50m 1500 18 Guard room m2 Grade 1 280 19 Greenhouse / Grade 1 12000 20 Livestock pen m2 Grade 1 150 21 Toilet / Grade 1 500 22 Terrace m2 Grade 1 12 23 Enclosing wall m³ Grade 1 200

Table 5-9 Compensation rates for ground attachments in Panjin City No. Item Unit Compensation rate (yuan/unit) 1 Timber tree, >25cm in diameter yuan each 360 2 Communication pole (cement) yuan each 600 3 Telegraph pole (cement) yuan each 1500 4 Tomb yuan each 800

Table 5-10 Compensation rates for ground attachments in Suizhong County Compensation rate No. Item Unit (yuan/unit) 1 Enclosing wall m 50 2 Toilet / 100 3 Power / communication line / 600 4 Tree / 200

47 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

6 Production and Livelihood Restoration

Programs for APs

6.1 Compensation and restoration for permanent land occupation

6.1.1 Allocation, transfer and assignment of state-owned land

(1) LA impact analysis Only the Panjin Subproject will occupy state-owned farmland (60.8 mu) permanently, affecting 45 households with 121 persons in one farm. In Group 5 of the Ershilipu branch of Xinglong Farm, acquired land area is 0.5 mu per household or 0.16 mu per capita, with a land loss rate of 6.83%. LA has little impact on Group 5, and its average cultivated area per household will be over 2 mu after LA. See Table 6-3. According to the impact analysis of the AHs in Group 5 of the Ershilipu branch of Xinglong Farm, 3 households have a land loss rate of less than 10% (6.7%), 36 households have a land loss rate of 10%-20% (80%), 4 households have a land loss rate of 20%-40% (8.9%), two households have a land loss rate of 40%-60% (4.4%), and no household has a land loss rate of 60% or more. See Table 6-4. Since land loss rate is relatively low, and the AHs’ main income sources are outside employment and doing business, LA will not affect the AHs greatly. In addition, the PMO will take different resettlement measures for the AHs to protect their interests. (2) Income loss analysis Based on an estimate of the income losses of the households affected by LA, income loss is 320 yuan per capita or 1,000 yuan per household, in which 22 households have an average income loss of less than 1,000 yuan, accounting for 48.89%, 18 households have an average income loss of 1,000 yuan-2,000 yuan, accounting for 40%, and 5 households have an average income loss of 2,000 yuan-3,000 yuan, accounting for 11.11%. See Table 6-1 and Table 6-2.

Table 6-1 Summary of income losses arising from resettlement 1 Average income loss per Affected population Per capita income loss household Group Per capita Average # of Average Population acquired land Income loss acquired HHs income loss area land area Ershilipu Group 5 122 380 0.16 192 0.5 600

Table 6-2 Summary of income losses arising from resettlement 2 <1000 1,000-2,000 2,000-3,000 3,000≤ Group Total # of HHs Percent (%) # of HHs Percent (%) # of HHs Percent (%) # of HHs Percent (%) Ershilipu 22 48.89 18 40 5 11.11 0 0 45 Group 5

48 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 6-3 Impact analysis of acquisition of cultivated land Total population Existing Per capita Occupied Affected population Land Per capita Acquired land area Acquired land Village / # of cultivated cultivated area cultivated area # of loss rate cultivated area per household area per group Population Population HHs area (mu) (mu) (mu) HHs (%) after LA (mu) (mu) capita (mu) Ershilipu 1200 3800 5500 1.45 60.8 45 121 1.11 1.43 0.05 0.02 Ershilipu 122 380 890 2.34 60.8 45 121 6.83 2.1 0.5 0.16 Group 5

Table 6-4 Analysis of land loss rates Land loss rate Group <10% 10%-20% 20%-40% 40%-60% 60%-80% 80%-100% Subtotal # of Percent # of Percent # of Percent # of Percent # of Percent # of Percent HHs (%) HHs (%) HHs (%) HHs (%) HHs (%) HHs (%) Ershilipu Group 5 3 6.7 36 80 4 8.9 2 4.4 0 0.00 0 0.00 45

49 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project According to the survey, in Group 5, the per capita income of farm workers is 9,700 yuan and per capita agricultural income loss is 320 yuan, with an income loss rate of 3.3%. Since the affected area is located near Xinglong District and affected strongly by the urban economy, the nonagricultural economy is developed, the proportion of agricultural income to gross income is decreasing, and labor service income has become an increasingly important income source in rural areas, so the reliance of the workers’ income on land is decreasing, and LA will not affect their livelihoods greatly. See Table 6-5.

Table 6-5 Per capita income loss rates of employees Per capita net Per capita lost agricultural Per capita income loss Group income (yuan) income (yuan) rate (%) Ershilipu Group 5 9700 320 3.3%

(3) Restoration program In March 2012, the RAP preparation team discussed the resettlement program with the affected village through a FGD, and determined a combination of direct cash compensation, employment training and social security. According to the survey on most of the AHs, all AHs expect cash compensation without land reallocation. In addition, the PMO will take different measures to resettle the AHs. In addition to cash compensation, all AHs in this subproject may attend local skills training and job referral services for free. 1. direct cash compensation Since the affected village is located in a suburb where land resources are limited, the AHs can hardly obtain new land through reallocation, land compensation fees and resettlement subsidies will be fully paid to the AHs without being withheld by the farm to be used for other agricultural or nonagricultural income-generating activities. In addition, the PMO has promised that the compensation rates for LA will be enough to support the social security for LEFs. 2. Basic endowment insurance for enterprise employees For employees of farming enterprises to participate in basic endowment insurance, the Panjin Municipal Government has promulgated the Implementation Plan for the Participation of Farming Enterprises in the Basic Endowment Insurance for Enterprise Employees of Panjin City. (1) Participants From July 1, 2003, farming enterprises and their employees and retirees in the urban districts will be included in the basic endowment insurance for enterprise employees. (2) Fund raising The proportion of contribution for the farming enterprise is 15%, which will be increased by 1% per annum until 19%; the proportion of contribution for individual employees will be 8% constantly. (3) Benefit Basic endowment insurance benefits: 1) For farming enterprise employees who retired before June 30, 2003, the pension will be 130 yuan/month; 2) Those retiring after July 1, 2003, Document LLSSD [2004] No.3 shall apply. As of the date of the survey, all eligible farm workers affected by this subproject had participated in the basic endowment insurance for enterprise employees. The affected population eligible for the social security for LEFs in the Panjin Subproject has been calculated according to the Interim Measures of Liaoning Province for the Social Security of Land-expropriated Farmers. See Table 6-6.

50 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 6-6 Population subject to production resettlement in the affected villages Sub- Per capita Acquired Populati distri Farm Group AHs APs cultivated land cultivated on Remarks ct before LA (mu) area (mu) resettled The affected population may be included in the social security system for LEFs voluntarily; Xings Ershilipu Group 45 121 0.16 60.8 50 eligible farm workers have heng branch 5 participated in the basic endowment insurance for enterprise employees.

3. Skills training In order to enable the APs to be reemployed more easily, a skills training program has been developed for the Panjin Subproject. According to the local industrial structure and market demand, skills training will be focused on aquaculture, paddy rice cultivation, service and building industries. Paddy rice, crab, greenhouse vegetables, poultry and livestock are agricultural advantages of Panjin City, so paddy rice, crab, duck and greenhouse vegetables will be the entry point for agricultural skills training in order to improve the production skills of the APs and increase their income. Since the affected area is close to the urban area where service and building industries are developed, nonagricultural skills training will be focused on bricklayers, painters, welders, tailors, concrete workers, housekeepers and maternity matrons. In Xinglongtai District affected by this subproject, free rural training would be given every year, and covers over 20 types of work at over 40 training bases. This will provide effective guarantee for the successful implementation of the skills training program under this subproject. See Table 6-7.

Table 6-7 Skills training program in the project area General Men- Training Frequency Budget Type of Scope of Duration budget Funding Item times period (times/ (yuan/ training training (year) (0,000 sources trained (day) year) man-time) yuan) Government Crab, duck special budget S 150 4 3 2012-2014 200 27 kills training program of the of the program training kills breeding + project training budget Agricultural Government Paddy rice, skills training special budget greenhouse 100 4 3 2012-2014 200 18 + project vegetable training budget Government Pest control 100 2 2 2012-2014 200 12 special budget Builders: Government bricklayers, special budget 150 4 3 2012-2014 300 40.5 Panjin Subproject Panjin masonry + project workers) training budget Electric Government 100 5 3 2012-2014 300 27 Nonagricultural welding special budget skills training Clothes Government 80 5 3 2012-2014 300 21.6 tailoring special budget

Maternity Government 50 4 2 2012-2014 200 6 matrons special budget Cooks 80 7 2 2012-2014 300 14.4 Government

51 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project special budget Total / / / / / / 166.5 /

4. Employment The employment of the APs will be promoted in the following ways: (1) Reemployment Panjin City is economically developed and has numerous industrial service enterprises with a great labor demand. The Panjin Municipal Labor and Social Security Bureau has organized an employment information service team to disseminate employment information timely, and guide farmers and workers to work outside in an orderly manner, especially for building and service industries. The owner of this subproject will give priority to the reemployment of the APs in coordination with the Panjin Municipal Labor and Social Security Bureau. (2) Employment during and after project construction 1) During project construction, a large number of unskilled workers will be needed; the owner will have the construction agency employ the APs with priority at a wage level not less than the local average wage level. 2) After the completion of the subproject, many maintenance workers will be needed for the routine operation of the bus terminals, including sanitation, landscaping and bus cleaning. The owner will have the bus company employ the APs with priority. See Table 6-8.

Table 6-8 Information on expected employment resettlement Minimum wage Item Type of work Workforce Remarks level (yuan/month) Skilled workers 30 1800 Reemployment Security guard, Unskilled workers 50 1200 handler, etc. Unskilled workers Employment 80 1000 Handler, etc. during construction under this Maintenance workers subproject 20 1000 Cleaner, etc. after completion

6.1.2 Permanent acquisition of collective land

(1) Impact analysis 1,154.6 mu of collective land will be acquired permanently, including 336.38 mu of irrigated land, 312.66 mu of non-irrigated land and 221.77 mu of garden land, affecting 1,115 households with 3,941 persons in 31 groups of 13 villages. The overall loss rate of cultivated land of the 31 affected village groups is 8.50%, in which 18 village groups have a loss rate of less than 10%, and 13 village groups have a loss rate of 10% or more, which are Gaozhangzi Group of Gaozhangzi Village (13.11%) affected by the Lingyuan Subproject; Groups 2 (14.23%) and 3 (10.4%) of Xidayingzi Village, Group 1 of Henan Village (14.45%), and Groups 1 (11.01%), 2 (23.15%) and 3 (29.68%) of Beishan Village affected by the Chaoyang Subproject; Group 4 of Xingoubei Community (16.63%), and Groups 5 (14.28%), 6 (10.35%), 7 (15.78%), 8 (12.93%) and 9 (15.50%) of Liujiapao Community affected by the Donggang Subproject. The 18 village groups with a loss rate of less than 10% (in Lingyuan, Chaoyang and Donggang Cities mainly) have 11,995 persons and 6,288.07 mu of cultivated land in total, and per capita cultivated area is 0.52 mu. 236.05 mu of cultivated land in the 18 village groups will be acquired for the Project, affecting 1,506 persons in total, and per capita cultivated area will be 0.50 mu after LA, with an average loss rate of 2.37%. The average proportion of agricultural income to gross income of the 18 village groups is 15.57%. Since farmers in Chaoyang and Donggang Cities earn income from secondary and tertiary industries mainly, and those in Lingyuan City are affected

52 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project slightly by the Project, LA will affect farmers’ production and livelihoods to a low extent. On the contrary, road construction will make their daily production and lives more convenient. See the RAPs of the Lingyuan, Chaoyang, Donggang and Lingyuan Subprojects for details. Gaozhangzi Group of Gaozhangzi Village is affected more seriously by the Lingyuan Subproject. This group has 212.8 mu of cultivated land, 0.28 mu per capita. 27.9 mu of cultivated land will be acquired, affecting 475 persons, with a loss rate of 13.11%. The survey shows that agricultural income accounts for 15.89% of this village’s gross income, the main crops are corn and vegetables, and villagers’ main income sources are secondary and tertiary industries. Groups 2 and 3 of Xidayingzi Village are affected more seriously by the Chaoyang Subproject; Group 1 of Henan Village; Groups 1, 2 and 3 of Beishan Village. Group 2 of Xidayingzi Village has 315.9 mu of cultivated land, 0.39 mu per capita. 44.95 mu of cultivated land will be acquired, affecting 119 persons, with a loss rate of 14.23%; Xidayingzi Group 3 has 323 mu of cultivated land, 0.38 mu per capita. 33.59 mu of cultivated land will be acquired, affecting 127 persons, with a loss rate of 10.4%; Group 1 of Henan Village has 111.6 mu of cultivated land, 0.18 mu per capita. 16.13 mu of cultivated land will be acquired, affecting 40 persons, with a loss rate of 14.45%; Group 1 of Beishan Village has 365.4 mu of cultivated land, 0.63 mu per capita. 40.22 mu of cultivated land will be acquired, affecting 162 persons, with a loss rate of 11.01%; Group 2 of Beishan Village has 403 mu of cultivated land, 0.65 mu per capita. 93.29 mu of cultivated land will be acquired, affecting 261 persons, with a loss rate of 23.15%; Group 3 of Beishan Village has 372 mu of cultivated land, 0.6 mu per capita. 110.4 mu of cultivated land will be acquired, affecting 262 persons, with a loss rate of 29.68%. The survey shows that agricultural income accounts for 34.2% of the gross income of Xidayingzi, Henan and Beishan Villages, the main crops are corn, vegetables and flowers, and villagers’ main income sources are secondary and tertiary industries. Group 4 of Xingoubei Community and Groups 5-9 of Liujiapao Community are affected more seriously by the Donggang Subproject. Group 4 of Xingoubei Community has 470 mu of cultivated land, 0.58 mu per capita, 78.14 mu of cultivated land will be acquired, affecting 292 persons, with a loss rate of 16.63%; Group 5 of Liujiapao Community has 258.91 mu of cultivated land, 0.86 mu per capita, 36.96 mu of cultivated land will be acquired, affecting 137 persons, with a loss rate of 14.28%; Group 6 of Liujiapao Community has 363.79 mu of cultivated land, 0.88 mu per capita, 37.65 mu of cultivated land will be acquired, affecting 173 persons, with a loss rate of 10.35%; Group 7 of Liujiapao Community has 471.84 mu of cultivated land, 1.45 mu per capita, 74.47 mu of cultivated land will be acquired, affecting 150 persons, with a loss rate of 15.78%; Group 8 of Liujiapao Community has 130.29 mu of cultivated land, 0.1 mu per capita, 16.85 mu of cultivated land will be acquired, affecting 59 persons, with a loss rate of 12.93%; Group 9 of Liujiapao Community has 156.2 mu of cultivated land, 0.13 mu per capita. 24.21 mu of cultivated land will be acquired, affecting 178 persons, with a loss rate of 15.50%. Since agricultural income accounts for 27.8% of gross income in the two communities only, LA has little impact on residents’ income. Although LA affects different villages to varying degrees, it is necessary to further analyze impacts on the AHs because the AHs may lose part of cultivated land. Based on an analysis of the households affected by LA, among all 1,115 AHs, most AHs have a land loss rate of less than 10%, accounting for 76.86%, 215 AHs have a land loss rate of 10%-20%, accounting for 19.28%, and 43 AHs have a land loss rate of 20%-40%, accounting for 3.86%. All AHs have a loss rate of agricultural income of less than 10%, because the Project is linear in shape and has little impact on every village, and most villagers in the affected villages are engaged mainly in secondary and tertiary industries. See Table 6-9.

53 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 6-9 Analysis of land acquisition impacts

Population

Before LA After LA Populatio Per capita Land Per capita Income Township / # of Per capita cultivated loss agricultural

No. Category Subproject Village Group Cultivated Cultivated # of n loss rate

sub-district HHs area after rate income cultivated (%) area (mu) area (mu) HHs LA (mu) (%) loss (yuan) area (mu) Gaozhangzi Gaozhangzi 180 760 212.8 0.28 27.9 0.24 13.11 55.07 0.79 Yaokeng 110 355 99.4 0.28 5.42 16 46 0.26 5.45 122.14 1.61 Shanjiadian Dongjie Shangtaizi 82 280 78.4 0.28 4.4 12 38 0.26 5.61 125.71 1.44 Sub-district Xiataizi North 115 360 252 0.7 15.1 19 76 0.66 5.99 335.56 4.19 Xinzhangzi 1 Lingyuan Xiataizi South 120 370 259 0.7 8.22 22 86 0.68 3.17 177.73 2.47 Fangshen North 190 620 600 0.97 51.1 42 154 0.89 8.52 659.35 8.14 Nanjie Group 4 560 1780 300 0.17 5.8 35 160 0.17 1.93 26.07 0.19 Zhennan Sub-district Group 5 540 1720 300 0.17 4 27 152 0.17 1.33 18.6 0.16 Chengguan Linghe Dahenan 200 600 530 0.88 25.71 32 96 0.84 4.85 642.75 5.23 Sub-district Group 2 238 810 315.9 0.39 44.95 30 119 0.33 14.23 566.6 5.67 Group 3 250 850 323 0.38 33.59 34 127 0.34 10.4 396.73 4.41 Xidayingzi Group 5 232 790 308.1 0.39 8.01 39 121 0.38 2.6 99.3 1.08 Group 6 244 830 323.7 0.39 4.16 17 63 0.38 1.29 99.05 1.11 Road Xidayingzi Group 1 185 620 111.6 0.18 16.13 11 40 0.15 14.45 604.88 6.8 2 construction Chaoyang Henan Town Group 6 189 620 111.6 0.18 9.76 31 97 0.16 8.75 150.93 1.72 Group 1 176 580 365.4 0.63 40.22 51 162 0.56 11.01 372.41 4.38 Group 2 187 620 403 0.65 93.29 67 261 0.5 23.15 536.15 6.23 Beishan Group 3 194 620 372 0.6 110.4 70 262 0.42 29.68 632.06 7.44 Group 4 174 590 365.8 0.62 18.27 12 49 0.59 4.99 559.29 6.5 Group 1 213 638 580 0.91 28.24 34 97 0.86 4.87 232.91 1.94 Xincheng Xingoubei Group 2 173 552 500 0.91 5.25 8 23 0.9 1.05 182.61 1.52 Sub-district Community Group 3 212 647 550 0.85 3.65 4 13 0.84 0.66 224.62 1.87

3 Donggang Group 4 262 813 470 0.58 78.14 101 292 0.48 16.63 214.08 1.78 Dadong Zhanqian Group 3 136 410 137 0.33 1.59 3 10 0.33 1.16 127.2 1.06 Sub-district Xincheng Liujiapao Group 4 183 593 403.07 0.68 29.37 40 115 0.63 7.29 204.31 1.86 Sub-district Community Group 5 93 300 258.91 0.86 36.96 47 137 0.74 14.28 215.82 1.96

54 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

ulati

Pop

on No. Category Subproject Township / Village Group # of Before LA After LA Per capita Land Per capita Income

sub-district Group 6 HHs141 413 363.79 0.88 37.65 59 173 cultivated0.79 10.35loss agricultural174.1 loss1.58 rate area after rate income (%) Group 7 93 326 471.84 1.45 74.47 48 150 LA1.22 (mu) 15.78(%) loss397.17 (yuan) 3.61 Group 8 527 1370 130.29 0.1 16.85 20 59 0.08 12.93 228.47 2.08 Group 9 430 1168 156.2 0.13 24.21 58 178 0.11 15.50 108.81 0.99 4 Panjin / / / / / / / / / / / / / / Urban Xinglong 5 Lingyuan Zhujiayingzi Dazhukexi 175 560 590 1.05 8 31 110 1.04 1.36 87 1.16 drainage Sub-district and water 6 Suizhong / / / / / / / / / / / / / / recycling Total 6804 21565 10242.8 0.47 870.81 1115 3941 0.43 8.50 276.69 2.77

Table 6-10 Land acquisition impacts Land loss rate # of No. Category Subproject Township / sub-district Village Group <10% 10%-20% 20%-40% AHs N Percent (%) N Percent (%) N Percent (%) Gaozhangzi Gaozhangzi 95 78 82.11 17 17.89 0 0 Yaokeng 16 16 100 0 0 0 0 Shanjiadian Shangtaizi 12 12 100 0 0 0 0 Dongjie Sub-district Xiataizi North 19 17 89.47 2 10.53 0 0 Xinzhangzi 1 Lingyuan Xiataizi South 22 22 100 0 0 0 0 Fangshen North 42 36 85.71 6 14.29 0 0 Group 4 35 30 85.71 5 14.29 0 0 Nanjie Sub-district Zhennan Group 5 27 23 85.19 4 14.81 0 0 Road Chengguan Sub-district Linghe Dahenan 32 29 90.63 3 9.38 0 0 construction Group 2 30 27 90 3 10 0 0 Group 3 34 31 91.18 3 8.82 0 0 Xidayingzi Group 5 39 34 87.18 5 12.82 0 0 Group 6 17 15 88.24 2 11.76 0 0 2 Chaoyang Xidayingzi Town Group 1 11 10 90.91 1 9.09 0 0 Henan Group 6 31 28 90.32 3 9.68 0 0 Group 1 51 48 94.12 3 5.88 0 0 Beishan Group 2 67 64 95.52 3 4.48 0 0

55 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Land loss rate # of No. Category Subproject Township / sub-district Village Group <10% 10%-20% 20%-40% AHs N Percent (%) N Percent (%) N Percent (%) Group 3 70 65 92.86 5 7.14 0 0 Group 4 12 10 83.33 2 16.67 0 0 Group 1 34 21 61.76 8 23.53 5 14.71 Xingoubei Group 2 8 5 62.5 3 37.5 0 0 Xincheng Sub-district Community Group 3 4 2 50 2 50 0 0 Group 4 101 52 51.49 31 30.69 18 17.82 Dadong Sub-district Zhanqian Group 3 3 0 3 0 0 100 0 3 Donggang Group 4 40 22 55 12 30 6 15 Group 5 47 23 48.94 19 40.43 5 10.64 Liujiapao Group 6 59 33 55.93 26 44.07 0 0 Xincheng Sub-district Community Group 7 48 29 60.42 15 31.25 4 8.33 Group 8 20 14 70 5 25 1 5 Group 9 58 36 62.07 18 31.03 4 6.9 4 Panjin / / / / / / / / / / 5 Urban Lingyuan Xinglong Sub-district Zhujiayingzi Dazhukexi 31 25 80.65 6 19.35 0 0 drainage and 6 Suizhong / / / / / / / / / / water recycling Total 1115 857 76.86 215 19.28 43 3.86

Table 6-11 Summary of expected resettlement modes Cash Other resettlement modes (%) # of No. Category Subproject Township / sub-district Village Group compensation Social security New rural Skills AHs Employment (%) for LEFs insurance training Gaozhangzi Gaozhangzi 95 100 0 100 61.05 72.42 Yaokeng 16 100 0 100 60.87 63.04 Shanjiadian Shangtaizi 12 100 0 100 42.11 57.89 Road Lingyuan Dongjie Sub-district 1 Xiataizi North 19 100 0 100 56.58 63.16 construction Subproject Xinzhangzi Xiataizi South 22 100 0 100 67.44 62.79 Fangshen North 42 100 0 100 48.70 53.25 Nanjie Sub-district Zhennan Group 4 35 100 0 100 66.25 48.75

56 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Cash Other resettlement modes (%) # of No. Category Subproject Township / sub-district Village Group compensation Social security New rural Skills AHs Employment (%) for LEFs insurance training Group 5 27 100 0 100 62.50 50.66 Chengguan Sub-district Linghe Dahenan 32 100 0 100 67.71 62.50 Group 2 30 100 0 100 60.00 63.33 Group 3 34 100 0 100 55.88 61.76 Xidayingzi Group 5 39 100 0 100 58.97 58.97 Group 6 17 100 0 100 64.71 70.59 Group 1 11 100 0 100 72.73 81.82 2 Chaoyang Xidayingzi Town Henan Group 6 31 100 0 100 45.16 51.61 Group 1 51 100 0 100 52.94 50.98 Group 2 67 100 0 100 56.72 55.22 Beishan Group 3 70 100 0 100 55.71 55.71 Group 4 12 100 0 100 58.33 66.67 Group 1 34 100. 0 100 26.80 32.99 Xingoubei Group 2 8 100 0 100 43.48 60.87 Xincheng Sub-district Community Group 3 4 100. 0 100 38.46 61.54 Group 4 101 100 0 100 35.27 55.14 Dadong Sub-district Zhanqian Group 3 3 100. 0 100 20.00 40.00 3 Donggang Group 4 40 100. 0 100 46.09 64.35 Group 5 47 100 0 100 34.31 62.77 Liujiapao Group 6 59 100. 0 100 63.01 71.68 Xincheng Sub-district Community Group 7 48 100 0 100 52.00 72.00 Group 8 20 100. 0 100 38.98 44.07 Group 9 58 100 0 100 38.20 60.67 4 Panjin / / / / 100.00 0 100 42.02 59.74 5 Urban drainage & Lingyuan Xinglong Sub-district Zhujiayingzi Dazhukexi 31 100 0 100 77.4 64.52 6 water recycling Suizhong / / / / / / / / / Total 1115

57 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project (2) Resettlement and restoration measures During the project impact survey and RAP preparation, the RAP preparation team discussed resettlement programs with the APs and the agencies concerned with the assistance of the Liaoning PMO and the subproject PMOs. Most of the AHs support the Project, because they think that the Project will improve their living environment and agricultural production conditions. Most of them expect cash compensation for LA, because this mode is simple and easy to operate, so that they can use compensation fees for production and livelihood restoration. In addition, in the village groups affected seriously by LA, the APs will be provided with employment training and job opportunities. The APs may also participate in the social security system for LEFs. Restoration programs have been developed based on the degree of impact, the availability of remaining land resources and the willingness of the APs. See Table 6-11. The main income restoration measures for land contracted by farmers include: 1. Cash compensation: Cash compensation will be based on the compensation rates and the amount of cultivated land acquired, and paid directly to the AHs. The AHs will use compensation fees for agricultural or nonagricultural income-generating activities, such as cash crops, sideline operations and small commodity trading. The village committees have determined the allocation of land compensation fees and resettlement subsidies in consultation with the AHs, as shown in Table 6-12.  The Lingyuan Subproject affects 6 villages, including Gaozhangzi, Shanjiadian and Xinzhangzi. Through interviews with key informants and representatives of AHs in the 6 villages: 1) Since all 6 villages are located in the urban planning area and have no free land, compensation fees for LA will be paid to the AHs without land reallocation; 2) During resettlement implementation, the Zhennan Village Committee will withdraw 20% of compensation fees for LA to develop the collective economy or public welfare programs; in Shanjiadian, Xinzhangzi, Fangshen, Gaozhangzi and Linghe Villages, 100% of land compensation fees will be paid to the AHs; 3) In the 6 villages, resettlement subsidies and compensation fees for young crops in compensation fees for LA will be fully paid to the AHs.  In Xidayingzi, Henan and Beishan Villages affected by the Chaoyang Subproject, 20% of land compensation fees will be used for public welfare (old age support and five guarantees, etc.) and public facility renovation, which has been accepted by the villagers, and the remaining 80% will be paid directly to the AHs.  The Donggang Subproject affects Xingoubei Community, Liujiapao Community and Zhanqian Agriculture Committee, where compensation will be based on location-based composite land prices. 12% of compensation fees for LA in Xingoubei Community, and 20% of compensation fees for LA in Liujiapao Community and Zhanqian Agriculture Committee will be used for public welfare (old age support and five guarantees, etc.) and public facility renovation, which has been accepted by the villagers, and the remaining 80% will be paid directly to the AHs.  In the Panjin Subproject, compensation will be based on the location-based composite land price of 74,000 yuan/mu (including a young crop compensation rate of 2,000 yuan), and all land compensation fees will be paid directly to the AHs.  In the Lingyuan Subproject, compensation will be based on the location-based composite land price of 50,000 yuan/mu (including a young crop compensation rate of 1,200 yuan), and all land compensation fees will be paid directly to the AHs.  In the Suizhong Subproject, compensation will be based on the location-based composite land price of 50,000 yuan/mu, and all land compensation fees will be paid directly to the AHs.

58 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 6-12 Allocation of land compensation fees and resettlement subsidies by component Compensation (yuan/mu) Allocation (yuan/mu) No. Subproject Sub-district Village Location-based Young crop Total Collective Individuals land price compensation 1 Gaozhangzi 50000 1200 51200 0 51200 2 Dongcheng Shanjiadian 50000 1200 51200 0 51200 3 Sub-district Xinzhangzi 50000 1200 51200 0 51200 4 Lingyuan Fangshen 50000 1200 51200 0 51200 Subproject Nanjie 5 Zhennan 50000 1200 51200 10240 40960 Sub-district Chengguan 6 Linghe 50000 1200 51200 0 51200 Sub-district 7 Xidayingzi 55000 1200 56200 11240 44960 Chaoyang Xidayingzi 8 Henan 55000 1200 56200 11240 44960 Subproject Town 9 Beishan 55000 1200 56200 11240 44960 10 Xincheng Xingoubei 40000 1000 41000 4800 36200 11 Donggang Sub-district Liujiapao 40000 1000 41000 8000 33000 Subproject Dadong 12 Zhanqian 60000 1000 61000 12000 49000 Sub-district Shuangsheng Shuguang 13 / / / / / Panjin Sub-district Committee Subproject Xinglong Ershilipu 14 72000 2000 74000 / 74000 Farm branch Lingyuan Xinglong 15 Zhujiayingzi 50000 1200 51200 0 51200 Subproject Sub-district 16 Xiyuan 50000 / 50000 0 50000 Chengjiao 17 Xiangfang 50000 / 50000 0 50000 Suizhong Xiang 18 Subproject Neidong 50000 / 50000 0 50000 Suizhong Xiguan 19 50000 / 50000 0 50000 Town Community Note: 1. In Panjin City, a state-owned farm is occupied permanently. 2. In Suizhong County, permanent LA involves housing land only, and there is no compensation for young crops.

2. Social security: Endowment insurance for LEFs According to the Interim Measures of Liaoning Province for the Social Security of Land-expropriated Farmers (LPGO [2005] No.81), the provisions on the endowment insurance for LEFs are as follows: i. Participants These Measures apply to registered agricultural population having attained 16 years and holding a certificate of second round of land contracting within the urban planning area of Liaoning Province, including 1) farmers in villages acquired of all or most of land with the approval of the state council or the provincial government; 2) residents converted from farmers with the approval of county (city, district) governments; and 3) farmers converted into nonagricultural status in household registration due to land acquisition. LEFs not meeting the above conditions may be compensated and resettled otherwise. ii. Fund raising In the endowment insurance for LEFs, funds shall be shared by the government, collective and individual, and the amount of contribution shall be based on the benefit level. Funds in the individual account shall be transferred from land compensation fees and resettlement subsidies at a time by the collective and individual at a proportion of not more than 70%. The collective’s income from land compensation shall be first used to contribute to the endowment insurance for LEFs. Funds in the

59 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project unified account shall be withdrawn from land transfer fees by the government at a proportion of not more than 30%. iii. Endowment insurance benefit If the insured has attained 60 years for man or 55 years for woman, he/she shall receive benefits from the following month at a rate of 80 yuan/month. iv. Other provisions Any LEF having participated in rural social endowment insurance before LA may continue with or discontinue this insurance as he/she wishes. The affected population eligible for the social security for LEFs in each subproject has been calculated according to the Interim Measures of Liaoning Province for the Social Security of Land-expropriated Farmers3. See the RAPs of the subprojects for details. New rural insurance According the Opinions of the Liaoning Provincial Government on the Implementation of Trials on New-Type Rural Social Endowment Insurance, rural residents having attained 16 years (excluding students at school) and having not participated in the basic endowment insurance for urban employees may participate in new-type rural social endowment insurance (new rural insurance for short) in places of household registration voluntarily. i. Participants: rural residents having attained 16 years (excluding students at school) and having not participated in the ii. Fund raising: The new rural insurance fund is composed of individual contribution, collective subsidy and government subsidy. (a) Individual contribution: Rural residents participating in new rural insurance shall contribute premiums at one of the following 5 levels – 100 yuan, 200 yuan, 300 yuan, 400 yuan and 500 yuan per annum, and those contributing more will receive more benefits. (b) Collective subsidy: Collective and other economic organizations, public welfare organizations, and individuals are encouraged to subsidize the insured. (c) Government subsidy: The government shall pay basic pensions under new rural insurance in full to the insured. 80% of such subsidies shall be from provincial level finance, and 20% from municipal and county-level finance. Municipal and county governments shall provide subsidies for contribution at a rate of not less than 30 yuan per capita per annum, and contribute part of or all premiums at the lowest level for severely disabled rural residents and other people in difficulty. iii. Insurance benefit: The pension shall consist of an individual account pension and a base pension, and shall be paid on a lifelong basis. The base pension shall be 55 yuan per capita per month, and may be increased by municipal and county governments as the case may be. The monthly individual account pension shall be the balance of the individual account divided by 139 (the same as the basic endowment insurance for urban employees). 3. Employment: During production restoration, the project owner and the resettlement implementing agencies will endeavor to provide assistance to the APs. Job opportunities generated by the Project will be first made available to the APs to provide a short-term income source to them and help them restore livelihoods. The project owner will ask the construction agency to provide more unskilled jobs to the APs, especially affected rural women, including civil works, handling, landscaping and ditch excavation. Employed APs will be paid about 1,000 yuan a month each. In addition, public welfare jobs and jobs in local industrial enterprise will also be

3 In practice, the terms and financing mode of the social security for LEFs will be based on the latest provisions of the cities, counties and districts involved in the subprojects.

60 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project available in each subproject area as the case may be. 4. Skills training: In order to enable the APs to be reemployed more easily, skills training programs has been developed for the AHs in different subprojects. According to the local industrial structure and market demand of the project area, skills training will be focused on stockbreeding, crop cultivation, service and building industries.

6.2 Restoration program for temporarily occupied land

In the Lingyuan and Suizhong Subprojects, pipeline laying will occupy land temporarily, in which the Lingyuan Subprojectwill occupy existing roads and dykes of 72.52 mu, and 150 mu of collective land, and the Suizhong Subproject will occupy existing roads of 38.53 mu. Pipeline excavation will occupy existing roads and dykes temporarily. Temporarily occupied land will be restored while pipelines are being excavated, and pipelines will be laid using the top jacking method in densely populated areas. No compensation will be paid. Only the Lingyuan Subproject involves compensation for temporary land occupation, and will occupy 150 mu of collective land temporarily, which is caused by pipeline excavation, building material storage, construction machinery and temporary work sheds. Temporary land occupation will affect 175 households but slightly. According to the Notice of the General Office of the Liaoning Provincial Government on the Implementation of Location-based Composite Land Prices for Land Acquisition (LPGO [2010] No.2), compensation for temporary land occupation will be based on the location-based composite land price and the period of occupation, and the total amount will be 1.125 million yuan, which is greater than actual losses. The temporarily occupied land may be restored by the AHs, village collective or construction agency based on consultation. The key principles for the restoration of temporarily occupied land are as follows:  The AHs will have priority, so that not only the APs will obtain job opportunities to increase household income, but also the quality of land restoration will be ensured. If the AHs or the village collective are/is unwilling to restore the temporarily occupied land itself, such land will be reclaimed by the implementing agencies.  The restoration of the temporarily occupied land will be supervised and inspected by the village collective and representatives of the AHs according to the following standard: Strict measures shall be taken during construction to protect surface soil and avoid any irrecoverable impact. During excavation, surface soil (recommended thickness 30-50cm) shall be collected and stored separately, and measures taken to prevent water loss and soil erosion. After construction, subsurface soil shall be backfilled first, then surface soil shall be spread on the surface evenly, and the ground leveled to reduce the impact on the quality of cultivated land. Land that hardens during construction will be plowed immediately after construction to restore the loose state.

6.3 Compensation and restoration for residential houses

Residential houses on collective land with a total area of 49,582.57 m2 will be demolished for the Project, affecting 521 households with 1,830 persons. Residential houses on collective land with a total area of 1,343.72 m2 will be demolished for the Project, affecting 20 households with 90 persons. The resettlement modes of the Project include cash compensation and property swap.  Lingyuan Subproject 152 residential houses on collective land and 80 on state-owned land will be demolished for this subproject. In Lingyuan City, all demolished residential houses on both collective and state-owned land will be compensated for at

61 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project replacement cost based on appraisal in case of cash compensation4 (1,360 yuan/m2 for masonry concrete structure; 1280/m2 for masonry tile structure; 180 yuan/m2 for simple structure); in addition to house compensation, the AHs may also receive acquisition, moving and transition subsidies. In case of property swap, an AH may apply for purchasing resettlement housing. According to the survey, 5 AHs have chosen cash compensation and 147 chosen property swap. The resettlement site will be possibly in Hedong New District. The house sizes available include 50 m2, 80 m2 and 100 m2. Property swap will be conducted at a size ratio of 1:1.5, and AHs will enjoy preferences for extra size.  Chaoyang Subproject 172 residential houses on collective land will be demolished for this subproject. The benchmark compensation rate for demolished houses have been fixed at replacement cost and by reference to past similar projects, being 1,320 yuan/m2; in addition to house compensation, the AHs may also receive acquisition, moving and transition subsidies, and early moving reward. According to the survey, 6 AHs have chosen cash compensation and 166 chosen property swap. Resettlement housing is available in the following sizes: 45 m2, 65 m2, 85 m2 and 105 m2.  Donggang Subproject 90 residential houses on collective land will be demolished for this subproject. The compensation rates for demolished houses have been fixed at replacement cost and by reference to past similar projects, being 4,500 yuan/m2 for multi-storied buildings and 4,000 yuan/m2 for single-storied buildings; in addition, the AHs may also receive transition subsidies, moving subsidies and early moving rewards. According to the survey, 56 AHs have chosen cash compensation and 34 chosen property swap. For the AHs choosing property swap, resettlement housing will be offered for swap as follows: (1) If the building area of the demolished house is less than 30 m2, it will be made up to 39 m2. (2) If the building area of the demolished house exceeds 30 m2, the size of resettlement housing will be 1.3 times in principle. (3) Resettlement housing will be selected in order of contract signing. (4) The size not subject to property swap will be compensated for at the above rates, namely 4,500 yuan/m2 for multi-storied buildings and 4,000 yuan/m2 for single-storied buildings, and the AH will pay the price difference at market price for any excess size. The AHs will be offered 3 residential communities and different house sizes of 39-125 m2 to choose from based on their own needs.  Suizhong Subproject 91 residential houses on collective land and19residential houses on state-owned land will be demolished for this subproject. In Suizhong County, all demolished residential houses on both collective and state-owned land will be compensated for at replacement cost based on appraisal in case of cash compensation5 (3,500 yuan/m2 for masonry concrete structure; 3,500 yuan/m2 for masonry timber structure; 500 yuan/m2 for simple structure); in addition to house compensation, the AHs may also receive moving and transition subsidies. According to the survey, 71 AHs have chosen cash compensation and 39 chosen property swap. There are two options for those choosing property swap: 1) If the total number of displaced persons in the nearby area reaches a certain value, the project owner will construct resettlement housing nearby centrally to resettle the APs in this subproject; 2) The subproject owner purchases commercial housing

4 The actual compensation rates will be based on the market prices of similar properties on the date of announcement, but will not be less than the current rates. 5 The actual compensation rates will be based on the market prices of similar properties on the date of announcement, but will not be less than the current rates.

62 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project from a developer as resettlement housing, and the AHs may choose position and size independently, and pay any price difference at market price. It is learned that since there is sufficient new or secondhand commercial housing in the subproject area, the subproject owner is able to purchase suitable resettlement housing for the AHs. The Panjin and Lingyuan Subprojects involve no HD.

Table 6-13 Expected resettlement modes for demolition of residential houses by component Expected resettlement mode No. Category Subproject # of AHs Cash Percent Property Percent compensation (%) swap (%) Lingyuan 1 152 5 3.29 147 96.71 Subproject Chaoyang 2 172 6 3.49 166 96.51 Road Subproject construction Donggang 3 90 56 62.22 34 37.78 Subproject Panjin 4 / / / / / Subproject Lingyuan 5 Urban / / / / / drainage Subproject and water Suizhong 6 110 82 74.55 28 25.45 recycling Subproject Total 524 149 28.44 375 71.56

6.4 Compensation and restoration for non-residential properties

The demolition of non-residential properties involves entities and commercial stores. 6.4.1.1 Compensation and restoration for entities The Project will affect nearby entities to varying degrees. After these entities are compensated or relocated, their working environment will be improved greatly.  Lingyuan Subproject The Lingyuan Subproject will affect 3 entities, which are Lingyuan Feiteng Textile Equipment & Parts Factory, Starlight Kindergarten and Dongcheng Central Primary School. (1) Lingyuan Feiteng Textile Equipment & Parts Factory and Starlight Kindergarten will be relocated and compensated for in accordance with the Notice of Lingyuan City on Issuing the Identification and Compensation Measures for the Acquisition of Productive and Operating Properties on State-owned Land (Interim) (LMGO [2011] No.154), and in consideration of their expectations. The subproject PMO will grant reasonable cash compensation or relocate them. In case of relocation, each entity will choose its new site independently, and the subproject PMO will purchase the same size of land for resettlement and compensate for its properties at appraised cost. In addition, each entity will be compensated for losses from production or business suspension, and income losses of employees. For Lingyuan Feiteng Textile Equipment & Parts Factory, its relatively remote location and poor road conditions are adverse to its development. Therefore, the business owner supports the Subproject and expects reasonable cash compensation. The factory may switch to another business line or resume operations elsewhere. The amount of compensation payable to this entity is 311,000 yuan. For Starlight Kindergarten, since its nearby road conditions are worsening, parents are unwilling to send their children here. Due to the intensive competition

63 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project resulting from several private kindergartens founded nearby in recent years, and its poor hardware, it is not running well very. The head of the kindergarten expects cash compensation, and will use the money to transfer to another business line or open a new kindergarten in the urban area. The amount of compensation payable to this entity is 388,800 yuan. (2) Dongcheng Central Primary School: Most schoolhouses were completed in the 1980s and have a floor area of about 15 mu. The school has a workforce of 40 and 300 students. and the teaching facilities are aged. Due to its backward teaching facilities and limited size, some parents have to choose relatively remote primary schools. The government has agreed to establish two new primary schools in Hedong New District with a floor area of 44 mu and 50 mu respectively to offer modern teaching conditions. The new campus is about 1.5km away from the former site. After the completion of the road, the school will enjoy convenient traffic and modern teaching conditions. In order not to cause inconvenience to the students, the road near the school will be constructed in stages in vacations mainly, and the new campus will be completed before the old campus is demolished. The amount of compensation payable to this entity is 950,100 yuan.  Chaoyang Subproject The Chaoyang Subproject will affect 9 entities: Furuida Experimental Equipment Co., Ltd., Xidayingzi Rural Credit Cooperative, Anyang Labor Service Co., Ltd., Highway administration division directly under the municipal government (Xidayingzi branch), Henan Village Office, Xidayingzi Village Office, Xidayingzi Primary School, a boiler room and a die factory. 1) Furuida Experimental Equipment Co., Ltd., Xidayingzi Rural Credit Cooperative, Anyang Labor Service Co., Ltd., the boiler room and the die factory will be compensated for or resettled according to the applicable policies and based on their own expectations. The subproject PMO will grant reasonable cash compensation or relocate them. In case of relocation, each entity will choose its new site independently, and the subproject PMO will purchase the same size of land for resettlement and compensate for its properties at appraised cost. In addition, each entity will be compensated for losses from production or business suspension, and income losses of employees. The amount of compensation payable to this entity is 14.134 million yuan. 2) Xidayingzi Primary School: Xidayingzi Primary School has a building area of over 10,000 m2 and a workforce of 26, including 19 women. The traffic environment surrounding the school is very poor, and pavements have not been hardened and would be muddy on rainy days, making it very difficult for children to travel. One corner of the playground of this school will be occupied for the Project, which will have slight impact on the school’s regular teaching. Both teachers and students support road construction strongly. The school expects that construction be performed during vacations to protect students’ safety, and that construction noise should not affect regular teaching. The school has offered special safety courses to educate children on traffic safety. The amount of compensation payable to this entity is 14.134 million yuan. 3) Xidayingzi and Henan Village Offices: The two offices will be relocated to other construction land in the villages, and will be compensated for by reference to the compensation rates for HD. The amount of compensation payable to the Xidayingzi Village Office is 1.696 million yuan and that to the Henan Village Office 636,000 yuan. 4) Highway administration division directly under the municipal government (Xidayingzi branch): The displacer will decide how to resettle this division in consultation with the traffic authority. The amount of compensation payable to this entity is 447,300 yuan.  Donggang Subproject The Donggang Subproject will affect 3 enterprises: Haitong Aquatic Products Co., Ltd., Xincheng Soft-packed Food Factory and Jinhong Metal Co., Ltd. These enterprises will be compensated for in cash at appraised price at a time, including compensation fees for properties and attachments, a subsidy for production or

64 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project business suspension and a moving subsidy. 1) For Haitong Aquatic Products Co., Ltd. and Jinhong Metal Co., Ltd., some properties and attachments will be demolished, and their production will not be affected substantially, so they will not have to be relocated. Their losses will be compensated for at appraised price. The amount of compensation payable to Haitong Aquatic Products Co., Ltd. is 260,000 yuan and that to Jinhong Metal Co., Ltd. 32,700 yuan. 2) Some production facilities of Xincheng Soft-packed Food Factory will be demolished, affecting its production partly, so it will be relocated. These facilities and attachments thereto will be compensated for at appraised price, and a subsidy for production or business suspension and a moving subsidy will be paid. The business owner expects cash compensation, and will lease land nearby to resume operations. The amount of compensation payable to this entity is 873,500 yuan. 6.4.1.2 Compensation and restoration for commercial stores  Lingyuan Subproject 46 stores will be demolished for this subproject, with a total area of 4,139.5 m2, affecting 216 persons in total. These stores will be resettled and compensated for pursuant to the Notice of Lingyuan City on Issuing the Identification and Compensation Measures for the Acquisition of Productive and Operating Properties on State-owned Land (Interim) (LMGO [2011] No.154), and in consideration of the APs’ expectations, who will choose cash compensation or relocation independently. It is learned that in case of cash compensation, the amount of compensation is based on market appraisal; in case of relocation, property swap at a ratio of 1:1.2 will be performed, and any price difference will be settled at market price regardless of the size of the demolished store. 4 affected stores will be subject to cash compensation and 42 subject to property swap.  Chaoyang Subproject 10 stores will be demolished for this subproject, with a total area of 1,252 m2, affecting 54 persons. These stores will be resettled and compensated for in consideration of the APs’ expectations, who will choose cash compensation or relocation independently. It is learned that in case of cash compensation, the amount of compensation is based on market appraisal; in case of relocation, property swap at a ratio of 1:1.2 will be performed, and any price difference will be settled at market price regardless of the size of the demolished store. one affected store will be subject to cash compensation and 9 subject to property swap.  Donggang Subproject 3 stores will be demolished for this subproject, with a total area of 1,410 m2, all in masonry concrete structure, affecting 25 persons. These stores will be subject to cash compensation (4,500 yuan/m2 for masonry concrete storied buildings) at appraised price, including house compensation fees, a subsidy for production or business suspension and a moving subsidy. All the 3 affected stores will be subject to cash compensation.  Suizhong Subproject 3 stores will be demolished for this subproject, with a total area of 155 m2, affecting 12 persons. Shuanghui Snack Store: This store has 3 employees and a floor space of 90 m2. Since the registered purpose on the certificate of title to house property is residential house, this store will be compensated for in cash at a time at the compensation rate for residential houses. It is found that there are many unoccupied properties in Xiguan Community available for lease, the lessee of this store will not be affected. Neidong Clinic and Yanlei Supermarket: Unlicensed auxiliary rooms of 45 m2 and 20m2 in masonry timber structure will be demolished only, so demolition will not affect their regular operation, and they will not have to be relocated. The subproject owner will compensate them at a structure-based replacement cost of 400 yuan/ m2. All the 3 affected stores will be subject to cash compensation. The other subprojects involve no demolition of commercial stores.

65 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 6-14 Expected resettlement modes for demolition of commercial houses by component Expected resettlement mode # of No. Category Subproject AHs Cash Percent Property Percent compensation (%) swap (%) 1 Lingyuan Subproject 46 4 8.7 42 91.3 2 Chaoyang Subproject 10 1 10 9 90 Road construction 3 Donggang Subproject 3 3 100 0 0 4 Panjin Subproject / / / / / 5 Urban drainage Lingyuan Subproject / / / / / 6 and water recycling Suizhong Subproject 3 3 100.00 0 0.00 Total 62 11 17.74 51 82.26

6.5 Restoration program for affected vulnerable groups

In addition to the compensation policies for LA and HD, vulnerable groups affected by the Project are also entitled to some other preferential policies, including the preferential provision of job opportunities. In the affected population, 80households with 112 persons fall into vulnerable groups, including 43 households covered by minimum living security with67persons, accounting for 59.82%; 14 households affected by disability with 15 persons, accounting for 13.39%; 68five-guarantee households with 12 persons, accounting for 10.71%. The project owner and the resettlement implementing agencies will provide various assistance measures to vulnerable groups, including:  At least two members of each AH receive skills training, including at least one woman; the AHs will also have priority in employment.  Laborers in vulnerable households will be provided with job opportunities and skills training so that they will have stable income sources.

6.6 Restoration program for ground attachments

Affected special facilities and ground attachments will be restored by proprietors after receiving compensation from the project owner. See Table 5-7, Table 5-8, Table 5-9 and Table 5-10 for the compensation rates. Restoration measures for demolished facilities must be planned and arranged in advance and suited to local conditions, so that such measures are safe, efficient, timely and accurate, and their adverse impact on nearby residents is minimized.

66 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

7 Organizational Structure and Implementation Progress

7.1 Organizational structure

The Liaoning PMO has been established to direct the resettlement work, supervise and inspect the implementation of the RAP, and contact the Bank. In addition, the owners of the subprojects will be responsible for the preparation of the subproject RAPs, LA and HD implementation and management, and internal supervision and monitoring. After the subproject RAPs have been approved by the Bank, the implementing agencies will assist the local land and resources bureau in implementing LA and resettlement under the direction of the Liaoning PMO. See Table 7-1.

Table 7-1 Resettlement agencies and responsibilities Resettlement implementing City / Management agency No. Category Subproject agencies county Name Key duties Name Key duties Lingyuan Lingyuan 1) Subproject 1 Subproject City Developing PMOs; 2) Longcheng resettlement local LA and Chaoyang 2 District, policies, HD offices; 3)

Road Subproject PMO Liaoning Implementing Chaoyang preparing the village construction LA, HD and RAP and resettlement Donggang Donggang resettlement 3 ensuring its working Subproject City according to implementation, teams of; 4) Panjin the RAP 4 Panjin City disbursing and local Subproject approved by Lingyuan Lingyuan supervising the governments; 5 Urban the Bank Subproject City use of funds, 5) local land drainage internal and and water Suizhong Suizhong 6 monitoring, etc. resources recycling Subproject County bureaus

7.2 Implementation progress

According to the implementation schedule of the Project, the Project will be constructed from 2013 to 2015, and the LA, HD and resettlement schedule will be linked up with the construction schedules of the subprojects; the main part of LA, HD and resettlement will begin in December 2012 and end in July 2013. The basic principles of scheduling are as follows: (1) The LA, HD and resettlement work shall be completed at least one month before the commencement of construction so that the affected persons have sufficient time to prepare for production resettlement and income restoration; (2) Before the commencement of construction, sufficient time must be allowed for LA, HD and resettlement. The overall resettlement schedule of the Project has been drafted according to the progress of preparation and implementation of LA, HD and resettlement. The times listed in the table are subject to adjustment with actual progress, as shown in Table 7-2 and Table 7-3.

Table 7-2 Schedule of LA and HD by component Construction period Resettlement No. Category Subproject City / county Preparatory Construction & implementation stage operating stages period

67 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Construction period Resettlement No. Category Subproject City / county Preparatory Construction & implementation stage operating stages period Lingyuan Lingyuan 1 2011.7-2012.9 2013.5-2015.5 2013.1-2014.1 Subproject City Longcheng Chaoyang 2 District, 2011.7-2012.9 2013.5-2015.5 2013.1-2014.1 Road Subproject Chaoyang construction Donggang Donggang 3 2011.10-2013.8 2013.9-2015.8 2013.4-2013.8 Subproject City Panjin 4 Panjin City 2011.7-2012.9 2013.3-2014.10 2013.1-2014.1 Subproject Urban Lingyuan Lingyuan 5 2011.7-2012.9 2013.9-2015.11 2012.12-2013.5 drainage and Subproject City water Suizhong Suizhong 6 2011.7-2012.9 2013.5-2015.5 2012.12-2013.3 recycling Subproject County

Table 7-3 Detailed LA and HD activities by component Urban drainage and Road construction water recycling Stage Task Lingyuan Chaoyang Donggang Panjin Lingyuan Suizhong Subproject Subproject Subproject Subproject Subproject Subproject Determination of range of LA and 2011.7- 2011.7- 2011.10- 2011.7- 2011.7- 2011.7- HD 2011.12 2011.12 2012.1 2011.12 2011.12 2011.8 2012.1- 2012.1- 2012.1- 2012.1- 2012.1- 2011.8- P DMS reparatory stage reparatory 2012.2 2012.2 2012.2 2012.2 2012.2 2011.9 2012.3- 2012.3- 2012.3- 2012.3- 2012.3- 2012.3- Socioeconomic survey 2012.4 2012.4 2012.5 2012.5 2012.4 2012.4 Consultation on resettlement 2012.3- 2012.3- 2012.3- 2012.3- 2012.3- 2012.3- programs 2012.4 2012.4 2012.4 2012.4 2012.4 2012.4 2012.4- 2012.4- 2012.4- 2012.4- 2012.3- 2012.4-

Preparation of the RAP 2012.7 2012.7 2012.7 2012.7 2012.6 2012.7 Disclosure of the RAP 2012.9 2012.9 2012.9 2012.9 2012.9 2012.9 Approval of the RAP 2012.11 2012.11 2012.11 2012.11 2012.11 2012.11 Approval formalities for 2012.9- 2012.9- 2012.10- 2012.9- 2012.9- Implement 2012.10 acquisition of rural collective land 2012.11 2012.11 2012.12 2012.11 2012.11 Holding LA and HD mobilization 2012.11 2012.11 2012.12 2012.11 2012.11 2012.11 meetings, and disclosing policies Publishing LA and HD ation stage ation 2012.12 2012.12 2013.1 2012.12 2012.12 2012.12 announcement Negotiating and signing 2012.12- 2012.12- 2013.4- 2012.12- 2012.12- 2012.12- compensation and resettlement 2013.3 2013.3 2013.7 2013.3 2013.3 2013.3 agreements

Handover of construction land 2013.5 2013.5 2013.7 2013.5 2013.5 2013.3 2013.3- 2013.3- 2013.3- 2013.3- 2013.3- 2013.3- M&E M&E 2015.7 2015.7 2015.10 2015.7 2015.7 2015.3

68 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

8 Budget and Funding Sources

8.1 Budget

The general budget includes compensation fees for permanent and temporary land occupation, compensation fees for demolition of residential houses, non-residential properties, unlicensed buildings and ground attachments, as well as relevant taxes, etc. The general resettlement budget of the Project is 337,620,300 yuan, accounting for 18.50% of the gross investment in the Project, including compensation fees for the permanent acquisition of collective land of 58,304,100 yuan (17.27% of the general budget), state-owned land transfer fees of 5,670,900 yuan (1.68%), compensation fees for temporary land occupation of 1,125,000 yuan (0.33%), compensation fees for the demolition of residential houses of 116,057,400 yuan (34.38 %), compensation fees for the demolition of non-residential properties of 48,137,700 yuan (14.26%), compensation fees for ground attachments of 14,131,800 yuan (4.19%), taxes of 45,570,100 yuan (13.50%), and contingencies of 30,692,900 yuan (9.09%). By subproject, the resettlement budget of the Lingyuan Subproject is 62,896,200 yuan (18.63%), that of the Chaoyang Subproject 113,765,600 yuan (33.70%), that of the Donggang Subproject 103,686,500 yuan (30.51%), that of the Panjin Subproject 8,757,200 yuan (2.53%), that of the Lingyuan Subproject 2,271,400 yuan (0.67%), and that of the Suizhong Subproject 47,138,100 yuan (13.96%). The general resettlement budget will be included in the overall costs of the Project. See Table 8-1 for details.

69 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 8-1 Resettlement budget of the Project (0,000 yuan)

Urban drainage and water Road construction recycling

Lingyuan Chaoyang Donggang Panjin Lingyuan Suizhong Percent No. Item Subproject Subproject Subproject Subproject Subproject Subproject Subtotal (%)

Permanent land 1 occupation 1176.6 3127.28 1524.9 449.76 40.96 78 6397.5 18.95

Acquisition of 1.1 collective land 1176.6 3037.23 1497.62 0 40.96 78 5830.41 17.27

Compensated transfer of 1.2 state-owned land 0 90.05 27.28 449.76 0 0 567.09 1.68

Temporary land 2 occupation 0 0 0 0 112.5 0 112.5 0.33

Demolition of 3 residential houses 2103.65 2377.04 3635.73 0 0 3489.32 11605.74 34.38

Demolition of non-residential 4 properties 1096.74 2864.54 818.23 0 0 34.26 4813.77 14.26

Demolition of properties of 4.1 entities 168.23 2569.12 116.62 0 0 0 2853.97 8.45

4.2 Demolition of stores 928.51 295.42 701.61 0 0 34.26 1959.8 5.8

70 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Urban drainage and water Road construction recycling

Lingyuan Chaoyang Donggang Panjin Lingyuan Suizhong Percent No. Item Subproject Subproject Subproject Subproject Subproject Subproject Subtotal (%)

Ground 5 attachments 536.32 206.78 635.53 4.53 0 30.02 1413.18 4.19 Subtotal of 1-5 4913.31 8575.64 6614.39 454.29 153.46 3631.6 24342.69 72.1

Planning, design and monitoring 6 costs 54.05 94.33 231.5 27.26 9.21 217.9 634.25 1.88

7 Management costs 147.4 85.76 330.72 13.63 4.6 108.95 691.06 2.05

8 Training costs 49.13 128.63 99.22 13.63 9.21 181.58 481.4 1.43 9 LA taxes 553.95 1457.96 2089.04 280.79 30.01 145.26 4557.01 13.5 Subtotal of 6-9 804.53 1766.68 2750.48 335.31 53.03 653.69 6363.72 18.85 Total of 1-9 5717.84 10342.32 9364.86 775.96 206.49 4285.29 30692.76 90.91

10 Contingencies 571.784 1034.232 936.49 77.6 20.65 428.53 3069.29 9.09 Total 6289.624 11376.55 10301.35 853.56 227.14 4713.81 33762.03 100 Percent (%) 18.63 33.7 30.51 2.53 0.67 13.96 / /

71 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

8.2 Annual investment plan

According to the LA and HD schedules of the subprojects, the annual investment plan is as follows: Table 8-2 Annual investment plan No. Category Subproject 2012 2013 Total

1 Lingyuan Subproject 3773.77 2515.85 6289.62 Chaoyang 2 Subproject 3412.87 7963.59 11376.56

Donggang 3 Subproject 2060.27 8241.07 10301.34

4 Road construction Panjin Subproject 341.42 512.13 853.56

5 Lingyuan Subproject 136.28 90.86 227.14

Urban drainage and water 6 recycling Suizhong Subproject 1414.14 3299.67 4713.81 Total 11138.75 22623.18 33762.03 Percent (%) 32.99 67.01 100

8.3 Funding sources and disbursement

The sources of resettlement funds of the Subproject are fiscal appropriations of the municipal/county governments and domestic bank loans. During project implementation, the owner of each subproject or the finance department will pay resettlement funds to the government departments responsible for LA, HD and resettlement, and then to be disbursed to the APs according to the compensation policies and rates specified in the RAP. Table 8-3 Sources of resettlement funds

Proportion of Gross Where, Resettleme resettleme No Subproje investme Bank loan nt costs Funding Category nt costs to . ct nt (0,000 (US$0,00 (0,000 source gross yuan) 0) yuan) investmen t (%) Domestic Lingyuan bank loan 1 Subproje 34540.12 1960 and fiscal ct appropriati 6289.62 18.21 on Road Chaoyan Local constructi g 2 36630.87 12800 counterpart on Subproje funds ct 11376.55 31.06 Donggan Local g 3 35640.74 2090 counterpart Subproje funds ct 10301.34 28.9

72 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Proportion of Gross Where, Resettleme resettleme No Subproje investme Bank loan nt costs Funding Category nt costs to . ct nt (0,000 (US$0,00 (0,000 source gross yuan) 0) yuan) investmen t (%) Panjin Local 4 Subproje 23818.48 2000 counterpart ct 853.56 3.58 funds Lingyuan Local 5 Urban Subproje 26999.95 2100 counterpart drainage ct 227.14 0.84 funds and water Suizhong Local 6 recycling Subproje 26750 251.7 counterpart ct 4713.81 17.62 funds Total 184380.16 21201.7 33762.02 18.31

73 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

9 Public Participation and Consultation, and Grievance Redress

9.1 Public participation

It is very necessary to conduct public participation at the preparation and implementation stages in order to protect the lawful rights and interests of the APs and the affected entities, reduce grievances and disputes, and realize the resettlement objectives properly by developing sound policies and implementation rules on displacement and resettlement, preparing an effective RAP, and organizing implementation properly. All stakeholders are encouraged to participate in resettlement and restoration. At the RAP preparation stage, the subproject PMOs and the design agency solicited comments and suggestions from local authorities, NGOs, township governments and AP representatives on the scope of construction, resettlement modes and other aspects of resettlement of the Project extensively. During RAP preparation, the subproject PMOs prepared the RAPs based on the APs’ comments on resettlement and compensation policies, and with the assistance of local governments. At the implementation stage, the resettlement agencies will further encourage the APs to participate in resettlement, production restoration and reconstruction. A variety of public participation activities have been implemented at the project preparation stage, as shown in Table 9-1. Table 9-1 Public participation process of APs Time Location Organizer Participants Topic Output Sub-district Subproject PMOs, Local planning bureaus, Consultation on site Minimizing LA 2011.10 offices of the government design agency, selection and and HD impacts -11 subprojects agencies sub-district offices, construction concerned village committees, APs schemes Sub-district Government Government agencies Notification of Conducting offices of the agencies related to related to subprojects, project impacts; preparatory work subprojects subprojects sub-district offices, initial definition of 2011.12 village committees, APs project area, policy communication and mobilization Subproject Government Government agencies Resettlement Learning the PMOs, agencies related to related to subprojects, socioeconomic socioeconomic 2012.3-4 sub-district subprojects, Hohai University, survey, project area profile of the offices, village subproject PMOs sub-district offices, and DMS project area and committees village committees, APs project impacts Subproject Government Hohai University, Discussing the Further reducing sites agencies related to employees of affected optimization of project impacts subprojects, entities, stores, village project design 2012.3-4 subproject PMOs, committees, APs Hohai University survey team Subproject Government Hohai University, Conducting a Learning more sites subject to agencies related to subproject PMOs, APs, supplementary about the Project supplementary subprojects, stores, entities survey on APs, 2012.5 survey subproject PMOs, project area and Hohai University affected entities survey team

9.2 Public participation strategy and methods

The terms of reference were prepared before the beginning of the survey to

74 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project specify the scope, methods and requirements of the survey, and persons assigned by local governments were included in the survey team. Heads of sub-districts, villages and groups, and representatives of the APs were invited to participate in the survey, and possible resettlement modes discussed with them. At the resettlement planning stage, the planning staff discussed resettlement programs with heads of sub-district offices and village committees. Resettlement sites were selected along with local residents and staff of departments concerned. These consultation activities are of great significance for the successful implementation of the RAP. The project management agencies should take measures to consult with the APs in the following ways: 1. Direct methods  FGD FGDs were held with representatives of the APs or village officials to discuss their concerns, collect their feedback, and solicit suggestions from the local governments accordingly.  Questionnaire survey A structured questionnaire was designed to learn the expected resettlement modes of the APs, with focus on the solicitation of comments on rural resettlement programs. In March and April 2012, a resettlement willingness survey was conducted on the AHs.  Consultative meeting on resettlement Consultative meetings on resettlement were organized by the subproject PMOs to discuss resettlement modes with the APs and improve the RAP based on their feedback. 2. Indirect methods The APs may reflect grievances, opinions and suggestions through village committees and resettlement agencies.

9.3 Public participation and consultation activities to date

Since October 2011, the Bank Mission has identified the Project. Afterwards, the subproject PMOs also conducted preparatory work for LA, HD and resettlement, as well as mobilization and consultation according to the scope of construction identified in the project proposal. During the socioeconomic survey, DMS and resettlement site selection, adequate consultation was conducted with the local land and resources, traffic, urban construction, and planning departments in the subproject areas. The subproject PMOs communicated the necessity of the Project and the resettlement policies to the sub-district offices, village committees and APs at FGDs. In March and April 2012, the RAP preparation team conducted a field socioeconomic survey on the subprojects (a supplementary survey was conducted on some subprojects in May). During the survey, the team found that the original project design could be optimized to reduce LA and HD impacts, so it conducted consultation with the subproject PMOs, subproject owners and departments concerned to optimize the project design. See Table 9-2.

75 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Table 9-2 Public participation process Activities and schedule Categor No. Subproject Participants Mode Socioeconomic Compensation Discussion of Key conclusions y DMS and willingness & resettlement resettlement survey policies programs Hohai University, APs, Lingyuan HD Lingyuan 1 Office, affected sub-district offices, 2012.3 2012.3 2012.3 2012.3-5 Subproject village committees Longcheng District Development & Chaoyang (1) DMS: The data is 2 Reform Commission, Hohai University, 2012.3 2012.3 2012.3 2012.3-5 Road Subproject true and accurate, and affected sub-district offices construc has been accepted Donggang PMO, municipal admin. tion Donggang 2012.3, mutually; (2) 3 office, Hohai University, affected 2012.3, 2012.5 2012.3, 2012.5 2012.3-5 Subproject Interview, 2012.5 compensation and sub-district offices, village committees FGD and resettlement policies: in Panjin PMO, bus company, Hohai Panjin questionn 2012.3, compliance with state 4 University, affected sub-district offices, 2012.3, 2012.5 2012.3, 2012.5 2012.3-5 Subproject aire 2012.5 and local policies; (3) village committees survey resettlement programs: Hohai University, APs, Lingyuan HD Lingyuan concrete, feasible and 5 Office, affected sub-district offices, 2012.3 2012.3 2012.3 2012.3-5 Urban Subproject satisfactory to the APs; village committees drainage (4) The APs support the County Development and Reform and Project quite well. Commission, land & resources bureau, water Suizhong 6 urban construction bureau, housing 2012.3 2012.3 2012.3 2012.3-5 recycling Subproject admin. bureau, village committees, Hohai University, design agency

Table 9-3 Policy disclosure process Urban drainage and Road construction water recycling Document Mode of disclosure and language Lingyuan Chaoyang Donggang Panjin Lingyuan Suizhong Place of disclosure Subproject Subproject Subproject Subproject Subproject Subproject Disclosure of schedule Chinese, radio & TV stations, Project introduction 2012.6 2012.6 2012.6 2011.12 2012.6 2012.8 newspapers LA and HD information Chinese, radio & TV stations, websites 2012.8 2012.8 2012.8 2012.3 2012.8 2012.8 RAP Chinese, library, newspapers After Bank review Village committees RIB Chinese, distributed to APs in person After Bank review Village committees, AHs

76 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

9.4 Information disclosure

During the preparation of the RAP, the Liaoning PMO, subproject PMOs and design agency disclosed project information and resettlement policies to the APs in different manners. See Table 9-3.

9.5 Public participation plan for the next stage

At the project implementation and resettlement stages, the subproject PMOs should also pay attention to information disclosure and public participation, and communicate with the AHs adequately to ensure the successful implementation of the Project. With the progress of project implementation, the APs should be further consulted in order to handle their concerns and requirements related to resettlement properly and timely, so that all issues can be solved before the RAP is put into practice. The resettlement implementing agencies will arrange public participation activities rationally so that all AHs can be consulted on compensation and resettlement before signing compensation agreements. Public participation and consultation activities at the next stage include: 1) Compensation and disbursement schedule; 2) Detailed restoration measures; 3) Issues arising from resettlement implementation; 4) Other concerns of the APs. The public participation plan for the next stage is shown in Table 9-4. According to this plan, the sub-district offices and village committees concerned may hold consultation meetings irregularly, and report to the project management agencies. In addition to the consultation activities organized by the subproject PMOs, the external M&E agency will also consult with the APs about other aspects of monitoring, and collect their comments and suggestions independently.

Table 9-4 Public participation plan for the next stage

Purpose Mode Time Agency Participants Remarks Village Soliciting APs’ Comments on Dec. 2012 – Jan. Subproject PMOs, Discussion committees, comments on project project design 2013 agencies concerned APs impacts Newspaper, Disclosure of the Subproject PMOs, government Oct. 2012 APs Disclosure of the RAP RAP agencies concerned website Distribution of the Subproject PMOs, / Oct. 2012 APs RIB RIB agencies concerned Disclosure of Village bulletin Announcement of Subproject PMOs, land compensation rates and board, village Jan. – Mar. 2013 APs LA and resources bureaus resettlement modes for meeting LA Announcement of Village bulletin compensation Subproject PMOs, land Compensation fees and board, village Feb. – Apr. 2013 APs and resettlement and resources bureaus mode of disbursement meeting programs for LA Subproject PMOs, Determination of Discussing final income Villager meeting municipal governments, income restoration Jul. – Sep. 2013 APs restoration programs (many times) sub-district offices, programs and implementation village committees Issues arising Whole process of Subproject PMOs, Discussing issues Discussion, field from project implementation of municipal governments, All APs arising from project survey, etc. implementation subprojects sub-district offices, implementation and

77 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Purpose Mode Time Agency Participants Remarks village committees, proposed measures external M&E agency Subproject PMOs, Collecting the APs’ Collection of Appeal Whole process of municipal governments, comments and suggestions and mechanism, implementation of sub-district offices, All APs grievances about the grievances field survey, etc. subprojects village committees, Project external M&E agency

9.6 Appeal channel and handling

Since the resettlement work is conducted with the participation of APs, no substantial dispute will arise. However, in order to ensure that APs have a channel to file an appeal on any issue concerning land acquisition and resettlement, a four-stage grievance redress mechanism has been established during the preparation and implementation the RAP: Stage 1: If any AP is dissatisfied with the RAP, he/she can file an oral or written appeal with the village committee or demolition implementing agency orally or in writing. In case of an oral appeal, the village committee or demolition implementing agency shall handle such appeal and keep written records. Such appeal should be solved within 2 weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with the township resettlement office/management agency after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may escalate the appeal to the competent administrative authorities in accordance with Administrative Procedure Law of the PRC after receiving such disposition for arbitration. Stage 4: If the AP is still dissatisfied with the arbitration award, he/she may file a suit in a civil court in accordance with the Civil Procedure Law of the PRC after receiving such award. The APs may file an appeal about any aspect of resettlement, including compensation rates, etc. The above appeal channel will be notified to the APs at a meeting or otherwise, so that the APs are fully aware of their right of appeal. Mass media will be utilized for publicity, and opinions and advice about resettlement will be compiled into messages for study and disposition by the resettlement agencies. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from contingency costs.

78 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

10 Monitoring and Evaluation Arrangements

10.1 Internal monitoring

To ensure the successful implementation of the RAP and resettle the APs properly, periodic M&E on LA, HD and resettlement activities will be conducted in accordance with the Bank’s policy on involuntary resettlement (OP4.12), and the Operational Guide to the Monitoring and Evaluation of Resettlement of World Bank Financed Projects in China. Monitoring is divided into internal monitoring of resettlement agencies and external independent monitoring. M&E will begin in June 2012 and end in December 2015. According to the construction and resettlement schedules of the Project, a progress report will be submitted to the Bank semiannually and an external monitoring report submitted annually.

10.1.1 Implementation procedure

Internal monitoring will be performed by the project owner with the assistance of the governments and HD offices of the project counties/districts/townships, and the affected village committees. The resettlement implementing agencies will establish a database of LA, HD and resettlement, and use it to prepare the RAP, monitor all displaced households and entities, and conduct internal supervision and inspection of the whole process of resettlement.

10.1.2 Scope of monitoring

1. Land approval 2. Compensation fees and disbursement 3. House reconstruction 4. Construction and allocation of resettlement housing for property swap 5. Production and livelihood restoration measures 6. Restoration of special facilities 7. Schedule for the above activities 8. Staffing, training, working schedule and efficiency of the resettlement agencies 9. Registration and handling of grievances and appeals of the APs

10.1.3 Internal monitoring reporting

The project owner will prepare an internal monitoring report semiannually, and submit it to the Liaoning PMO, which will in turn submit it to the Bank.

10.2 Independent external monitoring

10.2.1 Independent monitoring agency

The Liaoning PMO and the owners of the subprojects will appoint an independent third party agency with at least 5 years of experience in the M&E of Bank-financed projects to monitor and evaluate the Project’s LA, HD and resettlement activities.

10.2.2 Monitoring procedure and scope

⑴ Preparing the Terms of Reference of M&E ⑵ Developing software for the resettlement M&E information system ⑶ Preparing a survey outline, survey form and record card of affected residents and typical affected entities 79 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project ⑷ Design of sampling survey plan and sample size: 10% of households affected by LA and HD each; 20% of entities affected by HD ⑸ Baseline survey A baseline survey required for the independent M&E of the households affected by land acquisition will be conducted to acquire baseline data on the standard of living (livelihood, production and income levels) of the monitored displaced households. ⑹ Establishing an M&E information system An M&E information system will be established, where a database will be established for different types of M&E data, in order to provide computer aid for analysis and follow-up monitoring. ⑺ M&E survey (1) Capacity evaluation of resettlement implementing agencies: to investigate the working capacity and efficiency of the resettlement implementing agencies (2) Monitoring of resettlement progress, compensation rates and payment to typical displaced households: to monitor the disbursement of compensation fees, income restoration and resettlement quality of residents; and restoration measures for vulnerable groups (3) Public participation and consultation: to monitor public participation activities during the preparation and implementation of the RAP, and the effectiveness of participation (4) Appeals: to monitor the registration and disposition of appeals of the APs ⑻ Compiling monitoring data, and establishing a database ⑼ Comparative analysis ⑽ Preparing M&E reports according to the monitoring plan

10.2.3 Monitoring indicators

1. Socioeconomic indicators: per capita income, GDP, employment rate; 2. Institutional indicators: staffing, staff quality, rules and regulations, equipment, closing rate; 3. Infrastructure: availability of compensation fees, functional restoration rate

10.2.4 Post-evaluation

After project implementation, the resettlement activities will be subject to post-evaluation using the theory and methodology for post-evaluation on the basis of M&E. Successful experience and lessons of LA and resettlement will be evaluated to provide experience that can be drawn on for future resettlement. Post-evaluation will be conducted by the external independent M&E agency as appointed by the subproject PMOs. The post-evaluation agency will prepare terms of reference for post-evaluation to establish a system of evaluation indicators, conduct socioeconomic analysis and survey, and prepare the Resettlement Post-evaluation Report for submission to the Liaoning PMO and the Bank. See Table 10-1.

Table 10-1 M&E and reporting schedule Internal monitoring External monitoring City / No. Category Subproject Post-evaluation county Time Reporting Time Reporting report Lingyuan Lingyuan 2012.3- 2013.7- 1 Semiannual Annual One issue Subproject City 2015.3 2015.7 Longcheng Chaoyang 2012.3- 2013.7- 2 District, Semiannual Annual One issue Road Subproject 2015.4 2015.8 Chaoyang construction Donggang Donggang 2013.4- 2013.6- 3 Semiannual Annual One issue Subproject City 2014.4 2014.6 Panjin 2013.3- 2013.7- 4 Panjin City Semiannual Annual One issue Subproject 2014.10 2014.10

80 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Internal monitoring External monitoring City / No. Category Subproject Post-evaluation county Time Reporting Time Reporting report Urban Lingyuan Lingyuan 2012.3- 2013.7- 5 Semiannual Annual One issue drainage Subproject City 2015.3 2015.7 and water Suizhong Suizhong 2012.3- 2013.3- 6 Semiannual Annual One issue recycling Subproject County 2015.3 2015.3

81 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

11 Entitlement Matrix

Type Subproject Degree of impact APs Compensation policy Compensation rate Lingyuan Acquiring 235.32 300 Pursuant to the Notice of the General Office of the Liaoning Provincial  Cultivated land: 50,000 yuan/mu Subproject mu of collective households Government on the Implementation of Location-based Composite Land  Garden land: 50,000 yuan/mu land permanently with 1,283 Prices for Land Acquisition (LPGO [2010] No.2)  Housing land: 50,000 yuan/mu persons Chaoyang Acquiring 543.96 412 (1) In acquiring land, compensation should be made according to the  Cultivated land: 55,000 yuan/mu Subproject mu of collective households original purposes of the land acquired; acquired land is divided into  Garden land: 55,000 yuan/mu land permanently with 1,476 collective farmland, collective construction land and collective unused land.  Unused land: 55,000 yuan/mu persons (2) The AHs may attend local labor employment training voluntarily and  Housing land: 55,000 yuan/mu freely after receiving compensation. Eligible persons may also participate in the endowment insurance for LEFs voluntarily. (3) The compensation rates for LA will be based on the Notice of the

A General Office of the Liaoning Provincial Government on the cquisition of cquisition Implementation of Location-based Composite Land Prices for Land Acquisition (LPGO [2010] No.2). Donggang Acquiring 365.2 mu 422 (1) In acquiring land, compensation should be made according to the  Xincheng District: 40,000 yuan/mu Subproject of collective land households original purposes of the land acquired. Compensation for LA includes land  : 60,000 yuan/mu permanently with 1,247 compensation fees, resettlement subsidies, and compensation fees for  Young crops (irrigated land): 1,000 yuan/mu

collect persons ground attachments and young crops. (2) Land compensation fees and resettlement subsidies will be used as ive decided by the village congress; land compensation fees may be paid to

land the AHs or affected villages; resettlement subsidies must be used specifically for labor resettlement; compensation fees for ground attachments and young crops will belong to their respective proprietors. (3) The compensation rates for LA will be based on the Notice of the General Office of the Liaoning Provincial Government on the Implementation of Location-based Composite Land Prices for Land Acquisition (LPGO [2010] No.2) and the Notice on Publishing the List of Location-based Land Prices for Land Acquisition of Liaoning Province (LLRD [2010] No.16). Panjin / / / / Subproject Lingyuan Acquiring 8 mu of 31 households Allocation of funds: 1) Land compensation fees will be paid to the APs at a  Cultivated land: 50,000 yuan/mu Subproject collective land with 110 time in full; 2) Compensation fees for ground attachments and young crops  Young crops: 1,200 yuan/mu permanently, all persons will belong to their proprietors; 3) Registered agricultural population

82 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Type Subproject Degree of impact APs Compensation policy Compensation rate being irrigated land acquired of all land or with a per capita cultivated area of less than 200 m2 after acquisition, and having attained 16 years will be included in the social security system for LEFs. Suizhong Acquiring 15.6 mu 52 households Compensation will be based on composite land price and paid directly to The affected area is a Tier-I area, where Subproject of housing land with 154 the AHs. composite land price is 50,000 yuan/mu. persons Lingyuan Occupying 88.81 Permanent The state-owned land occupied for this subproject is intended for public / Subproject mu of state-owned occupation of infrastructure, and has been acquired by gratuitous allocation. If this land, where 67.8 state-owned subproject will occupy transferred state-owned land inevitably, the mu of road, 6 mu of land compensation rate will be determined by market appraisal. housing land, 15 mu of education land

P Chaoyang Occupying 13.5 mu 20 persons The state-owned land occupied for the Project is intended for public / ermanent occupation of of state of of occupation ermanent Subproject of state-owned affected by infrastructure, and has been acquired by gratuitous allocation. This land permanently, occupation of subproject will occupy 5 mu of state-owned land transferred from Furuida including 5 mu of some Experimental Equipment Co., Ltd., whose compensation rate will be land in an entity properties of a determined by market appraisal. and 8.5 mu of road state-owned enterprise Donggang Occupying 6.82 mu 3 households The state-owned land occupied for this subproject will be acquired by To be fixed through appraisal or negotiation, but Subproject of state-owned with 10 compensated recovery at appraised price. For the state-owned land for not less than the composite land price for land permanently persons military facilities acquired by allocation, the compensation rate will be collective land of 40,000 yuan/mu negotiated between the Donggang Municipal Government and the affected troops.

- Panjin Occupying 35.5 mu No AP In this subproject, the right to use the state-owned construction land /

owned land owned Subproject of state-owned occupied permanently for Shuangtaizi District Terminal has been acquired construction land by the bus company, and no compensation is necessary. Occupying 60.8 mu 45 households 1) The state-owned farmland occupied will be compensated for based on State-owned farmland: 72,000 yuan/mu of state-owned with 121 its original use and young crops attached thereto. farmland, involving persons 2) Compensation fees for LA will be paid directly to the AHs. The AHs may a branch farm attend local labor employment training voluntarily and freely after receiving compensation. For employees of farming enterprises to participate in basic endowment insurance, the Panjin Municipal Government has promulgated the Implementation Plan for the Participation of Farming Enterprises in the Basic Endowment Insurance for Enterprise Employees of Panjin City. 3) Compensation for LA and temporary land occupation is subject to the Notice of the General Office of the Liaoning Provincial Government on the

83 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Type Subproject Degree of impact APs Compensation policy Compensation rate Implementation of Location-based Composite Land Prices for Land Acquisition (LPGO [2010] No.2) and the Notice on Publishing the List of Location-based Land Prices for Land Acquisition of Liaoning Province (LLRD [2010] No.16). Lingyuan 8 mu of Reserved land The state-owned land occupied for this subproject is allocated gratuitously. / Subproject state-owned for WWTP construction Lingyuan 150 mu of 175 According to the applicable state and provincial policies, if rural collective  Compensation rate for temporary occupation

Temporary occupation land Subproject collective land, 34 households land is to be used temporarily for project construction or geologic survey, of collective land: 10,000 yuan/mu mu of state-owned with 570 the compensation rate is 15% of the location-based composite land price persons for one year or 20% of the land price for two years. affected by The land occupied temporarily for the sewer mains and water recycling collective land works is rural collective land, which will be occupied for 2 years and acquisition compensated for at 10,000 yuan/mu. The state-owned land occupied temporarily for the drainage network of industrial park will not be compensated for. Suizhong 32.28 mu of None Existing roads in the villages/communities are occupied without / Subproject collective land, compensation.

6.24 mu of

Demolition of of Demolition state-owned Lingyuan Demolishing 152 The resettlement modes for house demolition in this subproject are cash The value of a house subject to property swap will Subproject houses of 14,155.2 households compensation and property swap. be appraised by an appraisal agency in a unified m2 on collective with 679 1) In case of cash compensation, the compensation rates are based on manner. Benchmark compensation rates: masonry land persons Document LMGO [2011] No.155; concrete structure 1,360 yuan/m2, masonry tile 2

residential houses on collective land on collective houses residential 2) Property swap will be conducted at a size ratio of 1:1.5, and the AH will structure 1,280 yuan/m , and simple structure 180 pay the price difference at market price for any excess size. yuan/m2. The acquisition subsidy is 30 yuan/m2 AHs will enjoy preferences for extra size. but not less than 1,500 yuan per household. The moving subsidy is 20 yuan/m2 but not less than 1,500 yuan per household. The transition subsidy is 6 yuan/m2/month, and will not be paid if an AH is provided with transitional housing. Chaoyang Demolishing 172 The resettlement modes for house demolition in this subproject are cash  Masonry concrete: 1,320 yuan/m2 Subproject residential houses households compensation and property swap. The compensation rates are based on  Masonry timber: 1,320 yuan/m2 on collective land with 571 Document CMGO [2008] No.39. of 17,200m2 persons In case of property swap, the AH will pay the price difference at market price for any excess size. In case of cash compensation, the appraisal agency will fix the compensation rate of the demolished house based on its location, newness, structure and quality. In practice, the average price of

84 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Type Subproject Degree of impact APs Compensation policy Compensation rate the demolished houses is 1,320 yuan/m2. Donggang Demolition area 90 households (1) House compensation is based on replacement cost without regard to House compensation Subproject 7,707.97 m2 with 261 depreciation.  Multi-storied building: 4,500 yuan/m2 persons (2) Cash compensation and property swap are offered at the AHs’ option.  Single-storied building: 4,000 yuan/m2 (3) Transition subsidies, moving subsidies and early moving rewards will Other compensation be paid.  Moving subsidy: 500 yuan/household  Transition subsidy: 10,800 yuan/household  Early moving reward: 10,000 yuan/household Suizhong Demolition area 791households (1) House compensation is based on replacement cost; (2) Cash Benchmark rates for house compensation Subproject 8403.6m2 with compensation and property swap are offered at the AHs’ option; (3) The  Masonry concrete: 3,500 yuan/m2 267persons APs do not pay any tax, handling fee or legal cost during relocation; (4)  Masonry timber: 3400 yuan/m2 Moving and transition subsidies may be received.  Simple structure: 500 yuan/m2 Other compensation  Moving subsidy: 10 yuan/m2; 2

state  Transition subsidy: 5 yuan/month.m

D Demolishing Affecting 16 / Compensation and resettlement in the same mode as the demolition of Same compensation rates as those for residential

houses on on houses

residential residential

emolition of of emolition

-

owned land owned residential households with 80 residential houses on collective land houses on collective land houses on persons state-owned land of 1,200 m2 Lingyuan 2 enterprises and 1 3 entities with Pursuant to the Notice of Lingyuan City on Issuing the Identification and 1) The subproject PMO will grant reasonable cash Subproject public institution: 379 persons. Compensation Measures for the Acquisition of Productive and Operating compensation or relocate them. In case of Demolition of propertie of Demolition Feiteng Textile Including 54 Properties on State-owned Land (Interim) (LMGO [2011] No.154) relocation, each entity will choose its new site Equipment & Parts employees independently, and the subproject PMO will Factory, Starlight purchase the same size of land for resettlement Kindergarten, and compensate for its properties at appraised Central Primary cost. Each entity will also be compensated for School losses from production or business suspension, and income losses of employees. 2) Dongcheng Central Primary School will be

s of entities of s relocated to a new site in Hedong New District at the expense of the municipal government, so no extra compensation will be paid for the school. Chaoyang Demolition area 9 entities with The non-residential properties demolished for this subproject include  Masonry concrete: 1,320 yuan/m2 2 2

Subproject 12,260m 96 persons entities and stores, and the compensation rates will be fixed through  Masonry timber: 1,320 yuan/m appraisal by reference to structural type and compensation rates of past  composite compensation fees: 400 similar projects. yuan/m2-year

85 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Type Subproject Degree of impact APs Compensation policy Compensation rate The operating subsidy for business premises will be based on actual size.  Subsidy for production or business In case of property swap, the operating subsidy will be paid at the following suspension: 400 yuan/m2-year rates within the specified transition period: 400 yuan/m2/year for Tier-1 areas, 300 yuan/m2/year for Tier-2 areas and 200 yuan/m2/year for Tier-3 areas. In case of cash compensation, composite compensation fees for one year will be paid at the above rates at a time. Donggang 997 m2 3 households (1) The compensation rates for properties of entities will be appraised by a House compensation Subproject with 45 qualified appraisal agency. Masonry concrete, single-storied: 2,000 yuan/m2; persons (2) One-time cash compensation will be paid at appraised price, and a Masonry timber, single-storied (temporary): 400 subsidy for production or business suspension and a moving subsidy may yuan/m2; Steel frame, single-storied (temporary): be received. 1,000 yuan/m2; Tile & steel, single-storied (temporary): 1,500 yuan/m2; Simple, single-storied (temporary): 50 yuan/m2 Other compensation  Moving subsidy: 500 yuan/household  Subsidy for production or business suspension: 2,000 yuan/household Lingyuan 46 stores, 3,115.5 46 stores with The affected entities and stores will be compensated for and resettled In case of cash compensation, the amount of Subproject m2, affecting 171 171 persons pursuant to the Notice of Lingyuan City on Issuing the Identification and compensation is based on market appraisal; in persons Compensation Measures for the Acquisition of Productive and Operating case of relocation, property swap at a ratio of 1:1.2 Properties on State-owned Land (Interim) (LMGO [2011] No.154). will be performed, and any price difference will be settled at market price regardless of the size of the

Demolition of stores of Demolition demolished store. Chaoyang 1,252m2 10 stores with The same as those of Chaoyang City The same as those of Chaoyang City Subproject 54 persons Donggang 1,410 m2 3 households (1) House compensation will be based on market appraisal. House compensation: Subproject with 10 (2) Operating compensation will be based on the lawful building area and  Multi-storied building: 4,500 yuan/m2 persons the approved type of business, and a moving subsidy will be received. Other compensation:  Operating subsidy: trading and service stores: 720 yuan/m2 office and storage stores: 360 yuan/m2  Moving subsidy: 500 yuan/household Suizhong 3 stores, 155 m2 3 households Compensated for construction cost  Masonry concrete: 500 yuan/m2 Subproject with 12  Masonry timber: 400 yuan/m2 persons  Simple structure: 300 yuan/m2  Moving subsidy: 10 yuan/m2

86 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Type Subproject Degree of impact APs Compensation policy Compensation rate

Vulnerable groups 4 subprojects / 74 HHs with 92 Laborers in vulnerable households will be provided with job opportunities / (except persons, incl. and skills training so that they will have stable income sources. minimum living Panjin and security, During project construction, unskilled jobs will be first be made available to Lingyuan disability, laborers in vulnerable households. Subprojects) five-guarantee and women-

attachmen headed HHs

Ground All See Proprietors Proprietors will receive compensation at full replacement cost. See ts subprojects Table 2-13 Table 5-7, Table 5-8, Table 5-9 and Table 5-10.

Grievanc

appeals es andes Compensation All APs Appeals of the APs on LA, HD and resettlement are exempt from fees rates, payment and and management costs. resettlement

87 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Appendix 1: Related Project

Lingyuan Dongcheng WWTP Project In order to manage urban sewage, improve urban hygiene and the living environment, and promote balanced local economic, social and ecological development, the Lingyuan WWTP broke ground in 2008. Since the Lingyuan Dongcheng WWTP Project (hereinafter, “this project”) is functionally associated with the Lingyuan Subproject, the RAP preparation team has identified this project as a related project of the Lingyuan Subproject. 1. Introduction The Lingyuan WWTP is located in Fangshen Village, Dongcheng Sub-district, Lingyuan City, with a daily treatment capacity of 50,000 tons, and is now operated by Liaoning Northern Environmental Protection Co., Ltd. After its completion, the WWTP has improved the water quality of the Daling River, increased the utilization rate of water resources, and promoted sustainable urban development. This project has a gross investment of 105.27 million yuan and a floor area of 5.6121 hectares, including 5.5894 hectares of farmland and 0.0227 hectare of construction land. This project broke ground in October 2008, and was completed and put into operation in May 2010. 2. Approvals On March 10, 2008, the Chaoyang Municipal Development and Reform Commission examined and approved the feasibility study report of this project. On December 31, 2009, the Chaoyang Municipal Development and Reform Commission examined and approved the preliminary design of this project. On May 12, 2010, the Lingyuan Municipal Government explained the lawfulness of the compensation rates for LA and the feasibility of the resettlement modes of this project to the Liaoning Provincial Land and Resources Department. On June 10, 2010, the Lingyuan Municipal Government filed an application for the land used for this project with the Chaoyang Municipal Government. On December 2, 2010, the Chaoyang Municipal Land and Resources Bureau approved the land pre-examination of this project. On August 24, 2011, the Liaoning Provincial Government approved the land used for this project. It can be seen from above that the construction procedures of this project comply with the applicable laws and regulations of the state.

88 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Attached Figure 1-1 Approval documents of the Lingyuan Dongcheng WWTP Project

3. Resettlement impacts, compensation and resettlement (1) Impact on collective land According to the information provided by the Lingyuan Municipal Land and Resources Bureau, and the project owner, this project occupies 5.6121 hectares of collective land, including 5.5894 hectares of farmland and 0.0227 hectare of construction land, affecting one village (Fangshen Village) in one sub-district (Dongcheng Sub-district), and involving no ground attachment. (2) Affected population This project affects 9 households with 37 persons in Fangshen Village, Dongcheng Sub-district. In order to learn the income restoration of the APs after resettlement. The RAP preparation team conducted a survey on the 9 AHs to learn their income and expenditure before and after resettlement. It has been found (see Attached Tables 1-1 and 1-2) that the average net income per household of these AHs after resettlement (2011) was increased from 6,843 yuan before resettlement (2009) to 16,305 yuan by 9,462. It can be seen that the income of the APs has been restored effectively through rational resettlement.

Attached Table 1-1 Comparison of APs’ income before and after resettlement Where, Item Agricultural Average vegetable Employment Other (yuan/year and sideline Subtotal net income per cultivation income income /household) income household income 2009 10745 8621 6712 3560 29638 6843 2011 5460 3870 25800 8130 43260 16305 Difference -5285 -4751 19088 4570 13622 9462

Attached Table 1-2 Comparison of APs’ expenditure before and after resettlement

89 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project Item 2009 2011 Difference (yuan/year/household) 1. Productive expenses 6045 2455 -3590 2. Nonproductive expenses 8000 11000 3000 Electricity expenses 450 550 100 Water expenses 100 150 50 Communication expenses 200 500 300 Educational expenses 2000 3500 1500 Medical expenses 1500 2000 500 Non-staple food expenses 3000 5800 2800 Other 1500 2000 500 3. Gross expenditure 22795 27955 5160

(3) Satisfaction survey In order to further learn the satisfaction of the AHs with the LA and resettlement work of this project, the RAP preparation team also interviewed two typical AHs (see Attached Table 1-3). The interviews show that these AHs have restored their income greatly by investing compensation fees in business activities. In addition, since only part of their land has been acquired, they can still pursue farming, and may work in the urban area of Lingyuan City in the slack season. After partly LA, though the income of these AHs was affected temporarily, their income has been restored and improved to date.

Attached Table 1-3 Interviews with typical AHs Time: March 16, 2012 Location: Fangshen Village Committee, Dongcheng Sub-district Interviewee: ZLP, villager of Fangshen Village Household background: I’m 53 years old, and live with my wife, son, daughter-in-law and grandson. My son is working at Lingyuan Iron & Steel Group Ltd. as a skilled worker and is paid 4,500 yuan a month. My daughter-in-law is taking good of her child at home. My family has 3.2 mu of cultivated land. Except farming, I and my wife would do odd jobs in the urban area in the slack season, and our annual income from such odd jobs is about 10,000 yuan. LA and compensation: 1.5 mu of cultivated land was acquired, which was used to grow corn and vegetables, and was quite profitable. We received about 75,000 yuan in compensation for LA in 2010. Part of the money was used to renovate the house and part saved for further investment. We lead a fairly good life, and my family’s main income source is my son. Time: March 16, 2012 Location: Fangshen Village Committee, Dongcheng Sub-district Interviewee: ZZY, villager of Fangshen Village Household background: I live with my husband, mother and son. My son is studying at senior high school; my mother is 62 years old and unemployed. My husband deals with electric welding in Chaoyang City for 10 months a year, and is paid 4,000 yuan a month. I stay at home to take care of my mother and son, and also runs a grocery while doing farm work. My annual income from farming and the grocery is about 20,000 yuan. LA and compensation: In early 2010, 1 mu of cultivated land was acquired, and the compensation of 50,000 yuan

90 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project was received soon. Since my husband had a job and we led quite a good life, the money was used to open a grocery, which is quite profitable. Except my son’s educational expenses, my family’s expenditure is very limited. Source: fieldwork of RAP preparation team

(4) Compensation rates The compensation rates for LA of this project are based on Article 47 of the Land Administration Law of the PRC, Articles 23 and 24 of the Measures of Liaoning Province for the Implementation of the Land Administration Law of the PRC, the Notice of the Liaoning Provincial Government on Implementing Compensation and Resettlement for Land Acquisition Properly, and Protecting Farmers’ Lawful Rights and Interests Practically (LPG [2004] No.27), and the Notice of the General Office of the Liaoning Provincial Government on the Implementation of Location-based Composite Land Prices for Land Acquisition (LPGO [2010] No.2). According to the above documents, the affected area is a Tier-1 area, where the composite land price is 750,000 yuan/ha, the compensation rate for farmland is 750,000 yuan/ha, the total amount of compensation for farmland is 4,192,050 yuan, the compensation rate for construction land is 750,000 yuan/ha, the total amount of compensation for construction land is 17,025 yuan, and the total amount of compensation for LA is 4,209,075 yuan. The RAP preparation team has found that the resettlement mode of this project is cash compensation, and compensation fees are paid directly to the individual APs. Eligible APs may participate in the endowment insurance for LEFs voluntarily. All compensation fees have been fully paid to the APs, as shown in Attached Figure 1-2. The APs have no objection to compensation.

Attached Table 1-4 Summary of land occupation and compensation of the Lingyuan Dongcheng WWTP Project Land type Farmland Construction land Sub-district / village Total Irrigated Woodland Vegetable Rural housing land (ha) (ha) land (ha) land (ha) Fangshen Village, 1.7436 3.7791 0.0667 0.0227 5.6121 Dongcheng Sub-district Compensation fees 130.77 283.4325 5.0025 1.7025 420.9075

Attached Figure 1-2 Explanation on disbursement of compensation fees for the Lingyuan Dongcheng WWTP Project

91 World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project (5) Public participation Great importance was attached to public participation during LA, and a public hearing was held to listen to the APs’ comments.

Attached Figure 1-3 Public hearing records

4. Summary The land use approval, compensation and resettlement activities of this project were conduct in strict conformity with the state and municipal laws and regulations, and the LA procedures and compensation rates not only meet the applicable legal and regulatory requirements, but have also been accepted by the APs in practice. It is learned that no complaint visit, lawsuit or any other leftover issue arising from land acquisition or occupation occurred in this project, and the LA and resettlement activities were completed successfully in general.

92

Appendix 2 :Resettlement Policy Framework

World Bank-financed Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project

Resettlement Policy Framework

Liaoning Provincial Management Office of World Bank-financed Project

August 2012

93

I. Project Background The proposed Project Development Objective (PDO) is to improve the efficiency of urban transport and address water scarcity issues in selected cities in Liaoning Province. The particular emphasis is on (i) improving wastewater treatment and water reclamation to reduce pollution and foster more efficient use of scarce water resources; and (ii) provide better public transport services in selected cities and improving urban traffic flows along rehabilitated and new roads.In order to promote the development of the Liaoning Coastal Economic Belt, accelerate urban infrastructure construction, improve wastewater treatment and water reclamation to reduce pollution and foster more efficient use of scarce water resources, provide better public transport services in selected cities and improving urban traffic flows along rehabilitated and new roads. and improve the environment, the Liaoning Provincial Government has applied for a loan from the World Bank for the construction of the Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project (hereinafter, the “Project”). The Project consists of 7 subprojects in 6 cities/counties (Panjin City, Chaoyang City, Lingyuan City, Suizhong County, Kuandian County and Donggang City), and includes the construction or improvement of 45 urban roads and 7 bridges, the construction of sewage treatment facilities, sewer lines, canals, urban public transit and supporting facilities. The Project will be implemented from 2012 to 2015, where the preparatory work will be performed in 2012, construction will begin in early 2013, and all subprojects will be put into operation in 2015. According to the Feasibility Study Report of the Project and the Bank Memorandum: (1) The Donggang Subproject will improve the urban road network of Donggang City, expand urban space, improve the traffic conditions for residents in the urban villages in the subproject area, and provide basic guarantee for the urban village improvement project around the subproject area. An area of 2.2 km2 around the subproject area is the direct service range of the Donggang Subproject, and is related to the Donggang Subproject. According to the information provided by the Donggang PMO, the implementation schedule for the urban village improvement project has not been developed yet. (2) The Chaoyang Subproject will improve the existing road network of Longcheng District, and provide traffic facilities for the ongoing urban village improvement project around the subproject area. An area of 5 km2 in Xidayingzi Town, Longcheng District is the direct service range of the Chaoyang Subproject, and is related to the Chaoyang Subproject. According to the information provided by the Chaoyang PMO, the implementation schedule for the urban village improvement project has not been developed yet. In order that the production level and living standard of the persons affected by the urban village improvement projects within the direct service ranges of the Donggang and Chaoyang Subprojects are not reduced during and after the construction of the subprojects or that they benefit directly from the subprojects, the Donggang Municipal Government, Longcheng District Government, Liaoning PMO and the RAP preparation team have developed this policy framework, which will direct the subsequent LA, HD and resettlement activities of the above urban village improvement projects.

II. Measures to Avoid Involuntary Resettlement and Land Acquisition Under Liaoning Coastal Economic Belt Infrastructure Construction and Environmental Management Project, the selection and design of subprojects fully considered how to avoid involuntary resettlement caused by any permanent land acquisition and temporary land occupation. This Policy Framework for Resettlement and Land Acquisition is in compliance with the World Bank OP/BP4.12 and Guidelines for Involuntary Resettlement Action Plan, as well as Chinese laws and

94

regulations. The objectives are as follows;

(a) Avoid and minimize potential negative impacts, which include involuntary resettlement and cropping compensation caused by land occupation in project period;

(b) Strengthen monitoring an evaluation so as to find in time the possible land acquisition and resettlement;

(c) Some of the subprojects which would cause land requirement and resettlement have to be redesigned and re-selected, these subprojects will not be financed unless the resettlement plans are prepared and arrangements are properly made following the requirement of the Policy Framework;

(d) Develop measures to adequately mitigate the adverse impacts if they cannot be avoided, and to restore the livelihoods of the affected people; and

(e) Clarify institutional responsibilities to implement the rehabilitation measures; and the project participated districts should prepare their individual policy framework guidelines, following the requirements of the Policy Framework.

III. Resettlement and Land Acquisition Policies, Laws, and Regulations

In case when resettlement and land acquisition cannot be avoided, necessary rehabilitation measures will be developed in the form of action plans. These action plans will be based on the following laws, regulations, and policies.

(a) The land acquisition of local roads will strictly abide by the Law of the PRC on Land Management, the Implementation Regulations of the Law of the PRC on Land Management and related laws, regulations issued by Liaoning Province. The agency needing land for the construction of the proposed subprojects components will make application to the local department of land management and acquire the right for land use through administrative planning or paid transfer;

(b) The land acquisition for the proposed subproject component must follow the procedures stipulated by the Law of the PRC on Land Management. Related departments, including village councils, district governments, regional and municipal departments of land management have to clear the purposes of the project and the quantities of land acquisition. The departments of land management at all levels have to guarantee to provide quantified compensation in the case of livelihood affected by land acquisition;

(c) The definition of the component must follow up relevant laws and regulations of the PRC if any activities including civil engineering work and resettlement work fall into the above captioned provisions; and

(d) Preparation and implementation of the resettlement plan and/or compensation for acquired land in any components must be in accordance with the World Bank OP/BP4.12;

(e) Policies to be adopted by the RAP.

IV. Resettlement and Compensation Principles

95

The following principles will be binding under the project:

(a) Involuntary resettlement and land acquisition will be avoided/minimized as much as possible;

(b) If resettlement and land acquisition cannot be avoided, action plans will be prepared for compensation and rehabilitation of the affected people;

(c) Adequate funds will be timely provided for implementing such action plans;

(d) Preparation and implementation of such action plans will be conducted in consultation with the local governments and the affected people, on all the components with resettlement and compensation;

(e) Compensation will be paid at replacement costs without depreciation;

(f) Compensation will be paid prior to the move and acquisition of land;

(g) The affected people will be assisted during relocation and in their livelihood rehabilitation activities;

(h) The living standards of the affected people will be restored at least or improved after resettlement activities;

(i) All the costs related to land acquisition and structure demolition will be included in the project cost estimates; and

V. Management Organizations and Responsibilities

The PMO at all levels will be responsible for the planning and implementation of the project. The selection and implementation of components will be made strictly according to the Resettlement Action Plan..

The planning and statistics groups in PMO at all levels will assign special persons to be in charge of review and management of land use under the component. If it happens that the components change design/site for some reasons and hence need land acquisition, they must follow the procedures and requirements of the resettlement plan which will be compiled by the implementation agencies and submitted to the PMO at higher level.

Resettlement caused by changing design/site will be carried out by both PMO and land management bureaus sectors at the same level. PMO will guide implementation agencies to compile the allocation and implementation plan according to the Policy Framework as well as provide resettlement guidance. Meanwhile, PMO will also assist rising of funds, adopting reasonable measures, handling problems, and supervising the implementation.

The governmental departments of land management at all levels will implement management by various levels according to the authorization given by the state, review and check the scope and quantity of land acquisition, record land acquisition, handle the procedures for land acquisition and supervise the implementation of compensation measures. Only after approval by the department of land management can the subprojects be included in the annual investment plan under the project.

96

VI. Resettlement Action Plan

The subproject component with resettlement must have the plan as a basic condition for being financed under the project. For this purpose, a review mechanism will be established for examining the annual investment plan to identify the components that require resettlement.

The basic planning procedure will involve: (1) socio-economic survey in the affected areas; (2) census of the population to be affected and inventory of the land to be acquired and other assets to be affected (e.g. numbers, households, villages, type and quantity of land to be requisitioned, severity of impacts); (3) preparation of the resettlement measures and compensation standard based on related policies, laws, regulations, and consultation with people to be affected; and (4) preparation of the action plan and implementation schedule.

The plan will include: (1) description of the civil work related, and location and scope of the land acquisition; (2) purpose of land acquisition; (3) related policies and laws; (4) basic data (basic information of the affected people); (5) compensation rates; (6) institutions, responsibilities, and staffing (7) community participation; (8) effect on livelihoods and communities; (9) land acquisition schedule; (10) detailed livelihood rehabilitation plan; (11) cost estimates and timeframe; and (12) supervision, monitoring and evaluation of land acquisition.

VII. Monitoring and Evaluation

Construction land area, acquisition and compensation rates will be included in the implementation statement of PMO and submitted for review. Monitoring staff will periodically inspect and visit the field to identify the problems and then make recommendations to PMO to solve them.

Externally, an independent unit will be contracted to monitor and evaluate land acquisition and the implementation of the action plans. The independent monitoring will be conducted on baseline and sampling survey before resettlement activities, an annual basis, covering both the physical progress of action plan implementation and the evaluation of livelihood rehabilitation.

VIII. Grievance Procedures

The land acquisition and compensation of the project must follow laws, respect the willingness of affected people for the land is to be acquired, and encourage their consultation and participation. In the preparation stage of land acquisition, under the charge of PMO, the agencies for the component implementation will go to villages and visit farmer households, invite village leaders and farmers to participate in the evaluation, selection, and discussion of the location and quantity of land to be acquired, and the compensation rates and relocation methods. Only the agreements are made after farmer consultation can the action plan for land acquisition be signed finally. PMO will be responsible for explaining to farm households whose land is to be acquired about their rights and grievance steps. If farmers are not satisfied with the methods of resettlement, they can report their opinions to the village councils, and the councils can directly consult with the implementation agencies for solution. Farmers can also make grievance verbally or in written form to the higher level PMO. The PMO should record their grievances in the documents and consult with related sectors and the agencies to solve the problem raised by farmers within ten days after receiving the grievances. If the grievances/disputes cannot be solved through consultation, the village council can apply to the administrative department with jurisdiction for reconsideration, or take legal proceedings to the court, Written Reply on If Application Can Be Made for Reconsideration for a Case of Right of Land of Administrative Lawsuit and Regulations

97

on Administrative Reconsideration. PMO will be responsible for setting all the grievances and the solving process will be recorded.

98