RP577 V2

Public Disclosure Authorized

SUMMARY RESETTLEMENT ACTION PLAN

Public Disclosure Authorized FOR

BENGBU INTEGRATED ENVIRONMENT IMPROVEMENT PROJECT (BIEIP)

Public Disclosure Authorized

PROJECT MANAGEMENT OFFICE OF BIEIP

Public Disclosure Authorized HEFEI MUNICIPAL ENGINEERING DESIGN INSTITUTE CO. LTD.

September, 2007

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Signatory Page

Director Yin Xin

Director In-Charge: Cheng Guobao

Project In-Charge: Cheng Junfeng

Examined and Approved by: Cheng Guobao

Verified by: Cheng Junfeng

Checked by: Huang Dandan

Compiled By: Wei Li, Cheng Junfeng, Chen Jun

Participants: Fang Xiyi, Shi Lei, Wang Xiaochen

Wang Kun, Yao Hao, Chengdong

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List of Contents

Acronyms and abbreviations ...... 5

Executive Summary ...... 1

1 Profile...... 1

1.1 Objectives of Project Construction...... 1

1.2 Project Components ...... 1

1.3 Project Preparation and Progress of Resettlement Action Plan...... 5

1.4 Measures for Reducing Resettlement...... 5

1.5 Identification of Associated Works...... 8

2 Project Impacts...... 10

2.1 Investigation of Project Impacts ...... 10

2.2 Range of Project Impacts...... 12

2.3 Project Impacts...... 15

3 Socio-Economic Profiles of the Project Area...... 23

4 Legal Framework and Policies ...... 29

4.1 Policy Framework ...... 29

4.2 Main Principles...... 31

4.3 Overviews of Project Policies ...... 33

5 Compensation Standards...... 37

5.1 Compensation Standards for Acquisition of Rural collective Land...... 37

5.2 Compensation Standards for Permanent Occupation of State-owned Land ...... 40

5.3 Compensation Standards for Temporary Occupation of Collective Land...... 40

5.4 Demolition of residential houses ...... 41

5.5 Compensation Standards for Demolition of Non-residential Houses...... 46

5.6 Compensation Standards for Un-registered Houses...... 46

5.7 Compensation Standards for Infrastructure and Ground Attachments ...... 47

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6 Plan for Production and Living Rehabilitation ...... 50

6.1 Resettlement for Permanent Land Acquisition...... 50

6.2 Recovery of the Temporarily Occupied Land...... 57

6.3 Compensation and Resettlement of Residential Houses ...... 57

6.4 Compensation and Resettlement of Non-residential Houses...... 61

6.5 Rehabilitation Plan for Affected Vulnerable Groups...... 61

6.6 Rehabilitation Plan for Un-registered Houses...... 62

6.7 Affected Infrastructure and Ground Attachments...... 62

7 Institutional Organization and Implementation Schedule...... 63

7.1 Institutional Structure ...... 63

7.2 Implementation Schedule...... 66

8 Budget and Funds Sources ...... 70

8.1 Budget ...... 70

8.2 Annual Investment Plan ...... 73

8.3 Funds Sources and Payment...... 73

9 Public Participation, Consultation & Channels for Complains and Grievance 76

9.1 Public Participation ...... 76

9.2 Channels for Complaints Grievances...... 81

10 Schedule of Monitoring & Evaluation...... 82

10.1 Internal Monitoring...... 82

10.2 External Independent Monitoring ...... 83

11 Entitlement Matrix ...... 87

Appendix 1: Information Note on Resettlement Non-involvement of Tianhe Subproject ...... 99

Appendix 2: Summary of Project Construction Components and Major Resettlement ImpactS...... Error! Bookmark not defined.

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List of Tables

Table 1-1 Summary of Project Construction Components and Major Resettlement Impacts ...... 1

Table 1-2 Project Preparation and Progress of Resettlement Action Plan ...... 5

Table 1-3 Measures for Reducing Resettlement Impacts by Project ...... 7

Table 1-4 Profile of Associated Works...... 8

Table 2-1 Arrangement of Project In-Kind Indicators Survey...... 11

Table 2-2 Summary of Impacted Villages of the Project ...... 13

Table 2-3 Summary of Population Affected by the Project ...... 16

Table 2-4 Summary of Permanent Acquisition of Collective Land...... 17

Table 2-5 Summary of Temporary Occupation of Collective Land ...... 17

Table 2-6 Summary of State-Owned Land Affected by the Project...... 18

Table 2-7 Summary of Demolition of Rural Residential Houses by the Project...... 19

Table 2-8 Summary of Demolition of Urban Residential Houses by the Project...... 19

Table 2-9 Summary of Demolition of Stores by the Project ...... 20

Table 2-10 Summary of Demolition of Un-registered Houses by the Project...... 20

Table 2-11 Summary of Vulnerable Groups Affected by the Project ...... 21

Table 2-12 Land Attachments Affected by the Project ...... 22

Table 3-1 Major Economic Indicators of City / Counties Affected by the Project ...... 26

Table 4-1 Summary of Applicable Policy for the Project ...... 29

Table 5-1 AAOV Standards for Land Acquisition Compensation...... 37

Table 5-2 Compensation Times and Standards for Acquisition of Collective Land in Bengbu City and Counties...... 38

Table 5-3 Summary of Taxes and Charges for Lang Acquisition...... 39

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Table 5-4 Summary of Compensation of Temporary Occupation of Rural Collective Land ...... 40

Table 5-5 Compensation Standards for Demolition of Urban Residential Houses ...... 43

Table 5-6 Compensation Standards for Demolition of Rural Residential Houses...... 45

Table 5-7 Compensation Standards for Demolition of Stores...... 46

Table 5-8 Compensation Standards for Un-registered Houses ...... 46

Table 5-9 Compensation Standards for Ground Attachments...... 49

Table 5-10 Compensation Standards for Trees on Collective Land ...... 49

Table 6-1 Impact Analysis of Land Acquisition...... 52

Table 6-2 Impact Analysis of Households Caused by Land Acquisition...... 54

Table 6-3 Distribution of Land Compensation and Resettlement Subsidies...... 56

Table 6-4 Survey on Resettlement Willingness of APs ...... 58

Table 6-5 Survey on Resettlement Willingness of Rural APs ...... 60

Table 7-1 Institutional Organization and Responsibilities of Regarding Resettlement ..... 64

Table 7-2 Correlation Between Land Acquisition and Construction of All Subproject s .... 67

Table 7-3 Schedule of Land Acquisition and Activities of All Subproject s...... 68

Table 8-1 Budget for Compensation and Resettlement of the Project...... 71

Table 8-2 Annual Funds Utilization Plan ...... 73

Table 8-3 Summary of Sources of Funds for Resettlement...... 75

Table 9-1 Process of Public Participation...... 77

Table 9-2 Process of Publicity of Policies...... 79

Table 10-1 Schedule of Monitoring, Evaluation and Reporting...... 85

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Acronyms and abbreviations

APs Affected persons AAOV annual average output value BIEIP Bengbu Integrated Environment Improvement Project BMAD Bengbu Municipal Administration Division DI Design Institute DRA Design Review and Advisory (consultant BURGEAP) DRC Development and Reform Commission FSR Feasibility study report HH Household HRWRC Huai River Water Resource Commission M&E Monitoring and Evaluation PIU Project Implementation Unit PMO Project Management Office PS Pumping station RAP Resettlement Action Plan SA Social Assessment TA Technical assistance WB World Bank WRB Water Resources Bureau WTP Water treatment plant WWTP Waste Water Treatment Plant WWTWs Wastewater treatment works

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Executive Summary

Brief Introduction In order to expedite the process of urban environmental upgrading and relieve the financial tense, Bengbu city proposes a package project comprising of urban flood control and environmental treatment to apply for a total loan of USD 100 million from the World Bank for Bengbu Integrated Environment Improvement Project (BIEIP). The 3URMHFW3URSRVDOVIRU%HQJEX,QWHJUDWHG (QYLURQPHQW,PSURYHPHQW3URMHFWRI:RUOG%DQN/RDQwas approved by Anhui Development and Reform Commission via Ref. No. [2006] 229. The BIEIP has eight Subproject s that can be classified into three categories, respectively (i) Bengbu water resources integrated management, including: Longzihu Lake flood control environment improvement Subproject , Tianhe River flood control Subproject ; (ii) Urban environment and infrastructure improvement, including: Urban (south of Huaihe river) infrastructure improvement suproject, Huaishang District flood control and infrastructure improvement Subproject , Xijiagou flood management and environment upgrading Subproject ; (iii) Environment and infrastructure improvement in three counties, including Guzhen County, Wuhe County and Huanyuan County. The Executive Agency (EA) of the project is Bengbu World Bank Loan Project Management Office (BPMO). Correspondingly, the implementing agencies (IAs) are respectively (i) Bengbu Water Resources Bureau, Bengbu Construction Commission, Bengbu High & New-Tech Investment Group, Longzihu District Government, Huaishang District Government; (ii) Construction Bureau, Environmental Protection Bureau and Water Resources Bureau of Guzhen County; (iii) Chengguan Town, Water Resources Bureau and Construction Bureau of Huanyuan County and PMO and Environmental Protection Bureau of Wuhe County. According to the FSRs of all Subproject s, the total estimated cost of BIEP is RMB 1540 million (including RMB 237 million of resettlement cost, accounting for 15.4% of the total investment). The project will be started in 2008 and completed in five years. Based on the results of identification of project impacts, Longzihu Subproject and Tianhe Subproject will not involve land acquisition and resettlement. As for other Subproject s, BPMO and the relevant IAs have entrusted Hefei Municipal Engineering Design Institute Co. Ltd. to prepare the 5HVHWWOHPHQW$FWLRQ3ODQ (RAP) according to the guidelines of the World Bank. At the same time, according to Operational Policies for Involuntary Resettlement (OP4.12) of the World Bank, the BPMO has worked out the 5HVHWWOHPHQW3ROLF\)UDPHZRUNand the relevant principles that may guide the unexpected resettlement activities caused by the project construction. Resettlement Impacts In the stages of project planning and design, many possible considerations have been, through scheme optimization, given on how to

5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN mitigate the negative impacts of the project on the local social economy. For example, when land acquisition is inevitable, the priorities are given to the use of barren land, wasteland and state-owned land instead of farmland. When demolition cannot be avoided, the volume of demolition is minimized. These have become the critical factors for scheme optimization. The types of impacts of BIEIP mainly include: (i) impacts of losses caused by land acquisition / occupation; (ii) impacts of demolition of residential houses and land attachments; (iii) impacts of demolition of non-residential houses (mainly of enterprise and stores); and (iv) land attached facilities. The land acquisition and resettlement of the project involve 11 towns with 46 villages of Bengbu city, Huaiyuan County, Guzhen County and Wuhe County, totally affecting 11128 people, among them: (i) 2422 households with 9127 people are impacted by permanent acquisition of the collective land, accounting for 82.02% of the total impacted populace; (ii) 77 households with 267 people are impacted by demolition of urban residential houses, accounting for 2.4%; (iii) 405 households with 1710 people are impacted by demolition of rural residential houses, accounting for 15.37%; and (iv) 4 stores with 24 persons are also impacted, accounting for 0.22%. Among the impacted people, 7 households with 11 persons belong to vulnerable groups, accounting for 0.1% of the total population. The acquisition of collective land by BIEIP involves Bengbu city, Guzhen County, Wuhe country and Huaiyuan County, totally 2727.88 mu on permanent basis, including: 2380.9 mu of paddy land, accounting for 87.3%; 186.4 mu dry land, accounting for 6.8%; 144.1 mu of house site, accounting for 5.3%; 16.5 mu of fish pond, accounting for 0.6%. Most of the construction and material stacking are placed within the construction alignments or on the state-owned roads or greenbelts, and thus the impacts caused by temporary land occupation are little. The project will occupy 2677.5 mu of collective land on temporary basis, including 1796.2 mu to paddy field and 881.3 mu of fish pond, covering High-Tech District and Economic Development District of Bengbu city and Guzhen County. In addition, the project will permanently occupy 1128.0 mu of state-owned lands that are assigned free of charges. Demolition of residential houses as necessitated by the BIEIP includes those in rural and urban areas, totally 103160.3.6 and with the High-Tech District, Economic Development Distrit, Huaishang District, Huanyun County and Guzhen County involved. The total demolition area is 103160.3, of which, the project will (i) demolish a total area of 98227.08.4 of rural residential houses, covering 96522.6.0 brick-concrete structure (98.26% of total rural residential area)1328.8.7 of brick-wood structure (1.35%), 81.8 of earth-wood structure (0.1%) and 293.9 of simple structure (0.3%), impacting 405 households with 1710 persons; (ii) demolish a total area of 4933.2 of urban residential houses, covering 1963.3 brick-concrete structure (39.8.7% of total urban residential area)2853.1 of brick-wood structure (57.8%), 108.6 of earth-wood structure (2.2%) and 8.2 of simple structure (0.2%), impacting 77 households with 267 persons. Ã 2 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN

The demolition of non-residential houses of BIEIP only involves stores in Huaiyuan County Subproject . The total demolition of store area is 436.0m², including brick concrete structure 262.0m² (accounting 60.1% of demolished store area), brick-timbre structure 174m² (accounting for 39.9% of demolished store area), affecting 4 stores with 24 persons. The project will demolish 2083.5.65m² of unregistered houses (accounting for 3.7% of the total demolition area of the project), including 1653.6.1m² of rural houses (accounting for 79.4% of the total unregistered houses), 430.0.0m² of urban houses (accounting for 20.6% of total unregistered houses). In addition, the project will impact totally 14 types of land attachments and public facilities, mainly including concrete floor, trees, fence wall and well etc. Resettlement Policy and Standards The policy for the land acquisition, house demolition and resettlement of BIEIP shall be formulated pursuant to the relevant laws and regulations of the People’s Republic of China, An’hui Province, Bengbu City and the local governments, as well as the 2SHUDWLRQDO3ROLFLHVIRU,QYROXQWDU\5HVHWWOHPHQW (OP4.12) of the World Bank. During implementation, any changes to such relevant policies shall be approved by the World Bank in advance. The objectives of the resettlement policy of the BIEIP are to utmost avoid the negative impacts brought by the land acquisition and house demolition. The properties of those people receiving negative impacts shall be compensated at the replacement costs. They will be provided with sufficient chances in restoring or surpassing their previous living standards. In this connection, the main principles are: (i) To minimize the negative impacts of the project on the APs through adopting effective measures. (ii) The compensation and resettlement gained by the APs shall at least enable them to maintain the same living standards as “without project” or even better; (iii) to consult with the APs, enabling them to have the chances in fully participating in the planning and implementation of the resettlement plan. (iv) All affected properties will be compensated as per replacement costs. (v) The APs with unregistered structures and expired temporary structures will be compensated or assisted. (vi) To build before demolition at utmost in that the APs will get the full amount of compensation before land acquisition and demolition, i.e. payment of compensation, or provision of resettlement sites and allowances should be made prior to the acquisition of land and relevant properties. (vii) The Borrower shall be responsible for mobilize the compensation costs as necessary for resettlement, including the contingency costs for resettlement. (viii) To identify eligibility of the APs. The cut-off date for eligibility identification of APs should be date of issuing the announcement of land acquisition and demolition. After this date, the APs shall not be allowed to construct, expand or renovate the houses, nor to change the purposes of houses and land, to sell and lease out the land and houses. Any persons who come to the affected area shall not be eligible for compensation as the APs. (ix) Compensation for the demolished houses shall be made according to the

à 3 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN evaluated prices. If the evaluated prices are lower than the prices specified in the RAP, the prices in the RAP can be adopted. Land acquisition of the project will cover Bengbu city, Guzhen County, Wuhe County and Huaiyuan County. The principles, standards, procedures and monitoring mechanism of the project related to land acquisition and resettlement shall be formulated according to /DQG$GPLQLVWUDWLRQ/DZRIWKH 3HRSOH¶V5HSXEOLFRI&KLQD'HFLVLRQRIWKH6WDWH&RXQFLORQ'HHSHQLQJ5HIRUP DQG6WULFWO\(QIRUFLQJ/DQG$GPLQLVWUDWLRQ (Ref. No. GF[2004] 28), *XLGHOLQHV IRU6WUHQJWKHQLQJ/DQG$FTXLVLWLRQ&RPSHQVDWLRQDQG5HORFDWLRQ6\VWHP (Ref. No.GTZF[2004]238), 5HJXODWLRQVRQ/DQG$FTXLVLWLRQ&RPSHQVDWLRQDQG 5HVHWWOHPHQWIRU/DUJHDQG0HGLXP:DWHU5HVRXUFHVDQG+\GURHOHFWULF &RQVWUXFWLRQ3URMHFWV (No.471 Decree of the State Council), 3URYLVLRQVRI $Q¶KXL3URYLQFHRQ,PSOHPHQWLQJ/DQG$GPLQLVWUDWLRQ/DZRIWKH3HRSOH¶V 5HSXEOLFRI&KLQD revised), as well as relevant regulations of cities and counties concerned. (1) Land requisitioned shall be compensated for on the basis of its original purpose of use. Compensation for requisitioned cultivated land shall include compensation for land, resettlement subsidies and attachments and young crops on the requisitioned land. As for land compensation and resettlement subsidies for acquisition of cultivated land, the urban area of Bengbu city shall adopts 23 times of the annual average output value (AAOV), while Guzhen County, Wuhe County and Huaiyuan County shall adopt 16 times of AAOV. As for the AAOV of cultivated land, Bengbu city and Huaiyuan County shall adopt RMB1200/mu, Guzhen County RMB1161/mu and Wuhe County RMB1000/mu. The compensation for the land attachments and for the young crops shall belong to the owners. (2) The land compensation and resettlement subsidies shall be paid to the affected villagers’ committee or APs, being used in (i) increasing the area of cultivated land, if possible; (ii) improve agriculture through upgrading the irrigation and working methods etc.; (iii) develop non-agricultural incomes based on the existing activities; and (iv) serve as social security or endowment insurance for the displaced farmers. This project belongs to the public services, and so the state-owned land shall be obtained through land assignment. In case there involves state-owned agricultural land and resettlement, the policy thereof shall refer to those for requisitioning rural collective land. Temporary occupation of rural collective land involves High-Tech District of Bengbu city and Guzhen County. The compensation for temporary land occupation shall be made according to the duration and losses incurred, including crops compensation and land restoration expenses. The duration of occupation shall be maximally two years. After occupation, who will recover the occupied land shall be determined jointly by the representatives of the APs, village collective organization and the IAs. The compensation standards for temporary land occupation shall be: (1) In High-Tech District of Bengbu city, RMB600/mu each season for cultivated land, RMB 1000/mu for restoration expenses, RMB 600/mu for fertility loss; (2) In Guzhen County, RMB 600/mu each season for cultivated land, RMB 2000/mu for restoration expenses, RMB1000/mu for fertility loss compensation.

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Demolition of rural residential houses involves the High-Tech District, Economic Development District and Huaishang District of Bengbu city, Guzhen County. The displaced people can get the compensations made according to the structures of the houses to be demolished. At the same time, they will also get moving allowances and the in-advance moving rewards. There are three means of resettlement, respectively monetary compensation, exchange of property rights and self-rebuilding with self-demolition. (1) As for those choosing monetary compensation, the amount of compensation shall be determined according to the legal floorage area and at the replacement costs of different structures. (2) As for those choosing exchange of property rights, the demolition unit shall compute the compensation based on the legal floorage area and at the replacement costs, build the resettlement area according to the unified planning and provide with the houses as exchange for the displaced people. (3) As for those choosing self-rebuilding with self- demolition, the compensation shall be made according to the replacement costs of the demolished houses, and the displaced people may choose the house sites for to rebuild, provided that they are conforming to the planning. The house sites shall be arranged by the villagers’ committee in a planned and unified way, and the necessary expenses thereof shall be debited from the compensation for house sites. The area of house site of self-building shall be limited to 160m² each household. The compensation standards for demolition of rural houses are: (1) The High-Tech District of Bengbu city, (i) house compensation rate: RMB 400/m² for brick-concrete structure; RMB 350/m² for brick-wood structure; (ii) other compensations: moving subsidies RMB 1500/household; in-advance moving award RMB 3000/household. (2) Huaishang District, (i) house compensation rate: RMB 400/m² for brick- concrete structure; RMB 350/m² for brick-wood structure; (ii) other compensation will also include moving subsidies and in-advance moving award. (3) Guzhen County, house compensation rate: RMB 400/m² for brick- concrete structure; RMB 280/m² for brick-wood structure; moving subsidies RMB 1500/household. The compensation standards for demolishing urban residential houses, enterprise and institution, as well as stores shall be determined according to $GPLQLVWUDWLYH5HJXODWLRQVIRU8UEDQ%XLOGLQJ'HPROLWLRQDQG5HORFDWLRQ (Decree No.305 of the State Council)3URYLVLRQVRI$QKXL3URYLQFHRQ 0DQDJHPHQWRI8UEDQ%XLOGLQJ'HPROLWLRQDQG5HORFDWLRQ(Decree No.153 of the People’s Government of Anhui Province)3URYLVLRQVRI%HQJEX&LW\RQ 0DQDJHPHQWRI8UEDQ%XLOGLQJ'HPROLWLRQDQG5HORFDWLRQ, as well as relevant policies of the cities and counties concerned. Demolition of residential houses of the project involves urban area of Bengbu city, Huaiyuan County and Guzhen County. The dislocated people will get house demolition compensation, moving subsidies, in-advance moving award and subsidies for temporary relocation. Compensation for the demolition of urban residential houses shall be made at the replacement costs appraised by eligible qualified real estate appraisal organization. Compensation for the demolition of urban residential houses shall implement the forms of monetary compensation or exchange of property rights. The dislocated people shall have à 5 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN the rights to choose the form of compensation. (1) Monetary compensation. The amount of monetary compensation shall be decided based on the evaluated price in the real estate market. In case the evaluated price thereof is lower than that specified in the RAP, the latter shall prevail; or, the dislocated people may negotiate a mutually-agreed amount of compensation with the demolition unit based on the base price announced by the government. (2) Exchange of property rights. In this case, the dislocated people and the demolition unit may, through referring to the method of monetary compensation, determine the compensation amount of the demolished houses and the price of relocating houses for accounting the price differences. The demolition unit should resettle the dislocated people or the tenants within the specified transition period (maximally 18 months). (3) The vulnerable groups shall enjoy the preferential policies. The compensation standards for demolition of urban residential houses are: (1) The High-Tech District of Bengbu city, (i) house compensation rate: RMB 2000/m² for brick-concrete structure; RMB 1800/m² for brick-wood structure; (ii) other compensations: moving subsidies RMB 10/m²; in-advance moving award RMB 3000/household; subsidies for temporary resettlement as per 0.5% of the house monetary compensation. (2) Huaiyuan County, (i) house compensation rate: RMB 2000/m² for brick-concrete structure; RMB 1900/m² for brick-wood structure; (ii) other compensation: moving subsidies RMB 10/m², in-advance moving award RMB 3000/household; subsidies for temporary resettlement as per 0.5% of the house monetary compensation. (3) Guzhen County, (i) house compensation rate: RMB 900/m² for brick-concrete structure; RMB 900/m² for brick-wood structure; (ii) other compensation: moving subsidies RMB 10/m², in-advance moving award RMB 3000/household; subsidies for temporary resettlement as per 0.5% of the house monetary compensation. Demolition of non-residential houses only affect stores in Huanyuan Subproject . The compensation for demolition of non-residential houses by the project shall include house compensation and business suspension subsidies. The demolition of non-residential houses by the project shall be compensated according to the replacement cost appraised by eligible qualified real estate appraisal organization. The amount of monetary compensation shall be determined according to the base price announced by the government at the time of issuing the demolition license by giving considerations to the factors of location, structure, floorage area, stories and decoration etc. The real estate appraisal organization should listen to the comments of the dislocated people before starting the appraisal. On this basis, the compensation prices for the demolished houses shall be negotiated. Like demolition of urban residential houses, demolition of non-residential houses shall also adopt the methods of monetary compensation and exchange of property rights. The compensation standards for demolition of stores are: (1) In Huaiyuan County, house compensation RMB 2000/, brick-wood structure RMB 1900 //; Other compensation: house-moving subsidies RMB 10 /, business suspension subsidies 0.6% of house compensation each month.; In BIEIP, the houses of no legal registration to be demolished are not the main living houses of the APs. The compensation for these houses shall be made at à 6 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN the construction costs, respectively: (i) RMB 350-500/m² for urban houses; (ii) RMB 80-100/m² for rural houses. All the special facilities affected by the project will be re-constructed as per the requirements. The IAs will make compensation according to the amount mutually agreed by the administrative departments of these facilities, or include such amount in the project budget. The reconstruction shall be conducted according to the original function, scope and standards. The compensation for demolition of the land attachments shall be paid directly to the owners. The objectives of resettlement of this project are: (i) ensure that all APs can get full amount of compensation and be reasonably resettled and restored.; (ii) the APs can share the benefits brought by the construction of the project; (iii) the APs may receive assistance in settling their temporary difficulties; (iv) the incomes and livelihood of the APs and the productive and profit-making capacity of enterprises can be restored to or even better than the previous levels before the project. Income Restoration and House Reconstruction As for acquisition of the land contracted by farmer households, the survey shows that, on one hand, the contracting period of 30 years remains unchanged in China; on the other hand, a majority of collective organizations do not have optional lands for re-distribution. As such, in the views of village cadres and villagers, it would be impossible to re-distribute the lands to those farmers with their lands requisitioned. In addition, in this project, except for very few farmer households, the area of the requisitioned land is limited. Even with compensation of equal area of land, the farmers would not accept the remote small discarded land. Therefore, almost every APs are willing to accept the monetary compensation for land acquisition. This method is simple and easily operative. The farmers may freely use the compensation to restore production and living. On the basis of the degree of impacts by land acquisition of the project, accessibility of the surplus land resources and the willingness of the APs, upon full consultation with the villager’s committee and individuals during socio-economic survey, a number of economic rehabilitation plans have been worked out. As for measures for income restoration, there are three schemes. (1) The amount of compensation shall be calculated based on the compensation standards and the area of the requisitioned farmland and be directly paid to the APs. In this case, the affected household can use this amount to undertake other agricultural or non-agricultural activities, such as growing economic crops , engaging in other sideline business or small business; (2) The rural households who satisfy the requirements on “transferring agricultural to non-agricultural household status”1 will be covered by the urban community administration. They can participate in the endowment insurance for the displaced farmers.

 APs with the average per-capita farmland less than 0.3 mu after land acquisition conform to the requirements for ¡°transferring agricultural to non-agricultural household status¡±. Ã

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According to the &LUFXODURQ3ULQWLQJDQG,VVXLQJWKH3URYLVLRQDO5HJXODWLRQV IRU,VVXLQJ(QGRZPHQW,QVXUDQFHWR)DUPHUVZLWK/DQG5HTXLVLWLRQHG (Ref. BZ[2007]90, the male farmers aged 60 or above and the female farmers aged 55 or above who are covered endowment issuance upon approval shall be issued the3HQVLRQ&HUWLILFDWHIRU)DUPHUVZLWK/DQG5HTXLVLWLRQHG. These farmers shall get the pension from the coming month after obtaining the certificate. The amount shall be decided according to the premium, normally RMB 80-170 /month each person. (3) As for the land acquisition in the industrial park, the land reserve center will assign some reserved land to the affected village to construct standard factory buildings. In this way, the affected persons can get rent each year. In addition, in the whole process of production rehabilitation, the resettlement implementation organizations will provide with the utmost help and assistance to the APs, including the measures of: (i) The APs will have the priority in getting jobs from the project construction, hence will increase their cash incomes. (ii) The APs will have the priority in participating in labor transfer within the project area. (iii) As for the APs, the project has designed a series of activities of technical consultation and training, covering the aspects of agricultural technical training for economic crops and non-agricultural knowledge training etc. In this connection, concerned technical professionals of the agricultural and labor protection departments will be invited to the relocated area to provide with trainings concerning about agricultural cultivation. In this way, the each affected household will receive at least one time of agricultural technical training and non-agricultural technical training. These measures can help increase the quality and productivity of crops, increase the economic incomes of the APs and restore the livelihood of the APs. As for acquisition of the collective land (without being contracted out), the compensation shall be retained in the collective organization as the special funds to be used in infrastructure and public good services, such as construction of farmland irrigation facilities, roads and subsidies to the solitary elderly. As for the restoration of the temporarily-occupied collective land, upon extensive consultation with the farmers, the restoration can be conducted by the collective, farmer household or the IAs. Who will recover the occupied land shall be determined jointly by the representatives of the APs, village collective organization and the IAs. As a fact, the compensation for the temporary occupation of the rural collective land will be higher than the actual losses incurred to the cultivation, and thus the living of the villagers will not be affected by the temporary land occupation. The principles for restoration of temporarily occupied land are: (1) The affected farmer’s households shall have the priority. Such will help the APs get job opportunities and increase the family incomes. It will also ensure the quality of restoration. If the affected households and the village collective are unwilling to undertake the restoration, the restoration shall be organized by the IAs. (2) The acceptance inspection for the restored temporarily-occupied land shall be conducted jointly

à 8 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN the collective organization and the representatives of APs according to the standards as stipulated herein: (i) Surface earth should be protected under strict measures to avoid un-restorable occasion. (ii) When cutting, the surface earth (30-50cm in thickness recommended) should be stacked aside separately, for which, necessary measures for avoiding soil erosion should be provided. (iii) After construction, in order to minimize the negative impacts on soil quality, it is to back-fill the bottom earth, then evenly cover with the surface earth and level the site. (iv) The hardened land during the construction should be ploughed loose immediately after the completion. Reonstruction of urban residential houses and rehabilitation Demolition of urban houses of the project involves the Subproject in the urban area of Bengbu city and the Subproject in Huaiyuan County and Guzhen County. The total demolition area of the project will be 4933.2m², affecting 77 households with 267 people. The compensation shall be made according to the replacement price evaluated by the qualified appraisal organization that is selected by the APs. The price evaluation shall be made according to the factors such as location, house structure, purpose, story and direction etc. The means for resettlement have two options, respectively monetary compensation and exchange of property rights. Those choosing monetary compensation may buy commercial houses or second-handed houses according to their willingness. In addition to the rights of choosing resettlement means, the dislocated people may also freely choose the place of relocation and size of houses etc. ¾Urban area of Bengbu city: the compensation standard is RMB 1800- 2000/m². As per the average price in the current real estate market of Bengbu city (RMB 1800/m²), the displaced people can buy the second-handed houses of the same structure and same location with the compensation amount2. As for demolition of residential houses, change of property rights will be also available, exchanging the same area of legally-built area. In Taodian resettling residential area, demolition will be returned with the dame area of houses, with minimum resettling area of 35m². As for the un-registered houses, the demolition shall be compensated as per the cost price (RMB 500/m² for brick-concrete structure; RMB 350/m² of brick-timbre structure). In this case, the displaced people shall be provided with low-rent houses (RMB5/m², 6m² each person). If these people buy second-handed houses, they will be exempted from the transaction service charge. ¾Huanyuan County Subproject : The compensation standard RMB 1900-2000/m². As per the average price in the current real estate market therein (RMB 1500/m²), the dislocated people can easily buy the commercial houses or second-handed houses of the same structure and same location with the compensation amount.

 The age of the second-handed house is less than that of the house to be demolished. Ã

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¾Guzhen County Subproject : as per RMB 900/m² for house demolition. The resettlement shall be made based on the demolished residential area and according to the principle of exchange of property rights. The amount of compensation shall be computed as per the base prices (RMB 840/m² for class-I; RMB 720 for class-II). Reonstruction of rural residential houses and rehabilitation In BIEIP, demolitions of rural residential houses mainly occur in urban water- logging control Subproject of Bengbu city, Huaishang District Subproject and Guzhen County Subproject . The project will demolish rural residential houses a total area of 98227.1, affecting 405 households with 1710 people. There are three means of resettlement, respectively monetary compensation, exchange of property rights and self-rebuilding with self-demolition. ¾High-Tech District and Economic Development District: The residential houses of the farmers are located within the planned area of the city, i.e. “village within the city”. In addition to the monetary compensation made at replacement price (RMB 400/m² for brick- concrete structure; RMB 350 for brick-wood structure), these farmers can also get the compensation for the house sites (RMB 28/). As for those choosing “exchange of property rights” for resettlement, according to the floorage area of the previous house, one household can get a house of maximum 160m² ; As for those with floorage area less than 160m², the area for exchange shall be computed as per the actual area. In case that the area of the previous house exceeds 160m², as for the excessive part, an additional compensation of RMB 660/m² (RMB 400/m² for house, RMB 260/m² as award) shall be paid if such excessive part is within 32m² (1.2 floor area ratio); those exceeding 32m² shall be compensated at RMB 400/m². Other simple structures, such as pig pen, kitchen, rural dry toilet and seedlings will be all compensated. ¾Huaishang District Subproject : In addition to the monetary compensation made at replacement price (RMB 400/m² for brick- concrete structure; RMB 350 for brick-wood structure), these farmers can also get the compensation for the house sites (RMB 28//) and RMB 112 / facilities compensation. As for those choosing “exchange of property rights”, the prices of resettlement houses within the range of land acquisition shall be computed as per the preferential price (RMB 540/m²), cost price (RMB 760/m²) and market evaluated price (RMB 1030/m²). On average, each person can enjoy 25m² of resettling area, and the total resettling area of one household shall be limited to an area of 192m². (i) In case that the demolished registered area is larger than the eligible area to be resettled, the eligible area to be resettled shall be computed as per the preferential price; If within demolished registered area but exceeding the eligible area to be resettled, the exceeded part shall be computed as per the cost price; If exceeding both the demolished registered area and the eligible area to be resettled, the exceeded part shall be computed as

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per the market evaluated price. (ii) In case that the demolished registered area is less than the area to be resettled, the area within the registered area shall be computed as per the preferential price; the area exceeding the registered area but less than the eligible area to be resettled shall be computed as per the cost price; the area exceeding both the registered area and the eligible area to be resettled shall be computed as per the market evaluated price. ¾Guzhen County Subproject : In addition to the monetary compensation made at replacement price (RMB 400/m² for brick- concrete structure; RMB 280 for brick-wood structure), these dislocated people can also get the compensation for the house sites. Those choosing migratory resettlement may choose house sites to construct their house but subject to the planning. The house sites shall be arranged by the villagers’ committee in a planned and unified way, and the necessary expenses thereof shall be debited from the compensation for house sites. The area of house site of self-building shall be limited to 160m² each household. Rehabilitation of stores Demolition of stores occur in Huaiyuan County Subproject , demolishing 4 stores totaling 436 m², affecting 24 persons. Since these stores will be demolished, the affected people may, at their will, choose the monetary compensation or exchange of property rights for compensation. Vulnerable Groups As for the vulnerable groups, all the IAs will provide with occupational training and various employment information for them to increase their opportunities of getting jobs. During construction period, the children in the vulnerable families shall enjoy the priority in getting the jobs that do not require high skills. The especially-poor displaced people can get the low-rent housing provided by the government. As for those of average per-capita living area of less than 6m², the government will subsidy RMB 5/m². Unregistered Houses Demolition of the unregistered houses shall be compensated by the project. According to the survey, most of the unregistered houses are built aside the registered houses. Demolition of these unregistered housed will not bring about serious negative impacts on the APs. The demolition of the un- registered houses shall be compensated as per the cost price payable to the owners. Affected Infrastructure and Ground Attachments After compensating the affected infrastructure and land attachments, the reconstruction shall be conducted by the owners. The restoration measures for the demolished facilities shall be well planned ahead, and the implementation should be safe, effective, timely and accurate, and minimize the negative impacts on the people nearby. As for the affected public facilities, the demolition unit should strictly following the construction drawing and minimize

Ã11 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN removal. In addition, as for removal of the pipelines, the demolition unit should re-build first, under the conditions that such re-building and removal will not affect the living of the nearby local people (without re-locating residents). Organization and Implementation Plan Bengbu city has established BPMO that is responsible for guiding the development of RAP, implementation of land acquisition and contacting the World Bank. In addition, it will be also responsible for developing RAP, administration of land acquisition, supervision of internal inspection and internal monitoring etc. After the RAP is approved by the World Bank, all IAs will, guided by BPMO, select the qualified house demolition company to start the procedure of house demolition in urban areas. The acquisition of collective land and resettlement shall be implemented by the Land Resources Bureau. Based on the construction progress, the project shall be completed in five years in phases from 2008 to 2012. The plan for land acquisition, demolition and resettlement shall be in consistence with the construction of every components of the Subproject , which shall start from June 2008 and end in December 2012. The principles for arranging the resettlement progress are: (1) The land acquisition, demolition and resettlement shall be completed one month prior to the start of project construction, so that the APs would have adequate time in arranging production and preparing income restoration plan. (2) During resettlement, the APs should have the opportunities in participating in the project construction. Prior to construction commencement, the range of land acquisition must be announced, RIB must be distributed and public participation must be properly arranged. (3) All kinds of compensation must be paid to the property owners in full amount within three months after the date when the plan of compensation and resettlement are approved. No entities or individuals shall be allowed to utilize such compensation on behalf. No interception or misappropriation of such funds in any causes shall be allowed. All the IAs have prepared detail schedule for the implementation of the RAP according to the implementing activities of the project, However, this schedule shall be adjusted accordingly if the overall progress deviates. Resettlement Costs All resettlement charges will be included in total budget of the project. The resettlement budget shall include: compensation for permanent land acquisition; compensation for temporary land occupation; compensation for demolition of urban residential houses; compensation for demolition of rural residential houses; compensation for affected enterprise; compensation for affected institutional units; compensation demolition of stores; compensation for affected infrastructure and land attachments; relevant taxes etc. The total budget for resettlement of the project is RMB 237 million, accounting for 15.4 % of the project costs, comprising of: (i) compensation for permanent acquisition of collective land RMB66.905 million (accounting for 28.3%); (ii) compensation for temporary land occupation RMB 6.671 million (accounting for 2.82%); (iii) compensation for demolition of rural residential houses RMB

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40.69 million (accounting for 17.19%); (iv) compensation for demolition of urban residential houses RMB 7.433 million (accounting for 3.14%); (v) compensation demolition of stores RMB 0.159 million (accounting for 0.07%); (vi) compensation for land attachments RMB 3.819 million, accounting for 1.61%; (vii) compensation for unregistered buildings RMB 0.381 million (accounting for 0.16%); (viii) various taxes RMB 79.669 million (accounting for 33.7%); (x) resettlement contingency RMB 21.519 million (accounting for 9.09%). In terms of different Subprojects, the resettlement costs are: (i) Xijiagou Subproject , RMB 36.264 million (accounting for 15.32%); (ii) Urban infrastructure Subproject , RMB 104.789 million (accounting for 44.27%); (iii) Longzihu Subproject , RMB 6.624 million (accounting for 2.8%); (iv) Huaishang District Subproject , RMB 32.032 million (accounting for 13.53%); (v) Guzhen County Subproject , RMB 10.995 million (accounting for 4.64%); (vi) Wuhe County Subproject , RMB 5.523 million (accounting for 2.33%); (vii) Huaiyuan County Subproject , RMB 40.484 million (accounting for 17.1%). The funds for resettlement of all Subproject s are from the local financial allocation and domestic bank loans. During implementation of this project, resettlement funds will be made according to the policy and standards as specified in this RAP. The BPMO and IAs will pay all compensation funds to the demolition units or the local city or County land resources bureaus who will pay them to the affected units or individuals. Public Participation and Grievance Redress In order to safeguard the legal entitlements of APs and displaced units, as well as minimize any complaints and disputes, the BPMO and IAs have or will inform the major information of the RAP in various means, such as meetings, interviewing, village group discussions, public consultation, and community consultation etc.. Through these activities, all APs can participate in the project preparation, which likewise give full considerations of their demands in the RAP. The BPMO will be responsible for the monitoring, follow-up consultation and grievance redress for the implementation of this RAP. Since the resettlement activities are conducted with the participation of APs, there will not cause any great disputes during implementation. However, in order to provide with effective channels for complaints and grievance, the BIEIP has established the grievance redress mechanism that has been illustrated in the RAPs of all Subproject s. In this regard, the APs may lodge any complaints regarding the resettlement, including the compensation standards. This mechanism will be publicized to the APs through meetings and other means enabling all APs to know their rights of grievance. At the same time, through medias and enhancement of propaganda, the opinions and suggestions on the resettlement will be collected and forwarded to the resettlement administrative organs at all levels for prompt treatment. Relevant organs shall accept the complaints and grievance lodged by APs free of charge. The reasonable charges as incurred shall be covered by the resettlement contingency of the project. Monitoring & Evaluation

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In accordance with the 2SHUDWLRQDO3ROLFLHVIRU,QYROXQWDU\5HVHWWOHPHQW 23 RIWKH:RUOG%DQN and *XLGHOLQHVIRU3URFHVVLQJWKH5HVHWWOHPHQW &RPSRQHQWLQ:RUOG%DQN3URMHFWVRI&KLQDthe BPMO will undertake regular monitoring and assessment of the activities of land acquisition and resettlement of the project. The monitoring and assessment will involve two parts, respectively internal monitoring by the resettlement management institution and external independent monitoring. The monitoring and assessment will be started from June 2008 and ended in December 2011, for which, the semi-annual reports of internal and external monitoring shall be submitted to the World Bank according to the progress of construction and resettlement. The PMO will be generally responsible for the internal monitoring who will be coordinated by IAs, land resources bureaus of city / County, as well as house demolition management office. Such will ensure that the land acquisition and resettlement can be implemented pursuant to the principles specified in the RAP in a timely manner. The regular independent external monitoring and assessment shall be conducted by an independent qualified monitoring institution engaged by the BPMO. The contents for external independent monitoring will be: functions of the resettlement network; progress and compensation of land acquisition and resettlement; resettlement and restoration of displaced people, dislocated stores, enterprise and institution; survey and analysis of the levels of production and living of APs. According to the survey and analysis, the independent monitoring institution will review and assess all the activities relating to land acquisition and resettlement of this project from an overall and long-term perspective. In addition, it shall make suggestions to the relevant IAs for the settlement of the problems identified during monitoring, enabling these problems being settled during the process of resettlement.

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1 Profile

1.1 Objectives of Project Construction In the past decade, the flood disasters occurred frequently in Huaihe River causing serious threatens to the weak capacities in flood control and urban drainage of Bengbu city and its neighboring three counties (Huaiyuan County, Guzhen County and Wuhe County). Especially in the flood from June to July 2003, tens of thousands of mu of farmlands failed to harvest, nearly one hundred villages were inundated, a number of dykes were destroyed and many factories, schools and residential areas were flooded, bringing enormous losses. Considering this situation, the CPC and the municipal government of Bengbu city determined to strengthen the construction of urban flood control facilities and the eco-environmental improvement, aiming to upgrade the flood control capacity of the city, restore and construct favorable ecological environment and protect the living and production environment of the people in a practical way. The ultimate goal is to realize the sustainability in the harmonious development of urban socio-economy and the environment. In order to expedite the process of urban environmental upgrading and relieve the financial tense, Bengbu city proposes a package project comprising of urban flood control and environmental treatment to apply for a total loan of USD 100 million from the World Bank for Bengbu Integrated Environment Improvement Project (BIEIP). The BIEIP consists of three main aspects, respectively water resources management, flood and water-logging control and urban infrastructure improvement. The 3URMHFW3URSRVDOV IRU %HQJEX 8UEDQ (QYLURQPHQWDO 8SJUDGLQJ3URMHFW RI :RUOG %DQN /RDQ was approved by Anhui Development and Reform Commission via Ref. No. [2006] 229.

1.2 Project Components The components of BIEIP are water resources management, flood and water-logging control and urban infrastructure improvement. The project covers one city (Bengbu city) and three counties (Huaiyuan County, Guzhen County, Wuhe County). The project components and major resettlement impacts are shown in Table 1-1.

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Table 1-1 Summary of Project Construction Components and Major Resettlement Impacts Land Acquisition Permanent LA Temporary land Affecte (mu) occupation (mu) d House SL. Project Components Construction Contents Populat Remarks demolition ion State- Collectiv State- Collecti (m2) owned e owned ve (perso n) Bengbu Tianhe Construct one pumping 1 / / / / / / As detailed in Appendix 1 City Subproject station 9.33 km of river Xijiagou 2 upgrading in Xijiagou / 458.6 / / 2727.9 1123 Resettlement Plan compiled Subproject and Baligou Xinquantang pumping station only has house Separat demolition; other 3 e Urban 3 water-logging control pumping stations belong to Resettl 3 infrastructur pumping station, 1 25.3 / / / 1254.6 90 upgrading or equipment ement e Subproject lifting pumping station. innovation, and the land Plan belongs to state-owned compile land, without requirement d of LA. 147km of storm water Pipelines are laid along the and sewage water existing road in the pipeline (in Economic downtown area. The Development District. construction scope is within 1 669.6 380 148.4 13315 1877 The resettlement the road alignment, and impacts do not include thus no land acquisition and Economic Development house demolition are District) involved.

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Land Acquisition Permanent LA Temporary land Affecte (mu) occupation (mu) d House SL. Project Components Construction Contents Populat Remarks demolition ion State- Collectiv State- Collecti (m2) owned e owned ve (perso n) 22 km of road (the road construction only involves Longzihu 771.8 298.2 / / 50100 2520 District and Economic Development District) Longzihu water-logging Upgrading of the existing pumping control (water resources / / / / / / station, and thus no land acquisition bureau) and house demolition will be involved. Longzihu Bank slope treatment, 4 Only have impacts caused by Subproject south Longzihu lake temporary land occupation. The RAP dredging and ecological / / / 2305.8 / / is combined with the urban Subproject upgrading of nearby (south of Huaihe river). mountains.

3 pumping stations 14.3 1 / / Separat Underground pipeline e 15 km of pipelines / / 67.5 / Huaishang laying, without demolition Resettl 5 District 33437 1566 ement Subproject 11.9 km of road 192.1 30.2 / / Plan 9.1 km of Dagou ditch compile / 135 / 82.5 desilting d New construction or Guzhen County Separat 6 upgrading of 5 pumping 13 60.35 / / 2723.3 1496 Subproject e stations Resettl ement

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Land Acquisition Permanent LA Temporary land Affecte (mu) occupation (mu) d House SL. Project Components Construction Contents Populat Remarks demolition ion State- Collectiv State- Collecti (m2) owned e owned ve (perso n) Belong to pipeline ement upgrading engineering. The Plan existing conditions belong compile 9 km of combined to open ditch, and this d / / 61 / pipelines Subproject will upgrade it to pipeline, and thus without requirement of additional land acquisition. Land for road construction belongs to the reserved 9.5 km of flood-control 85.5 / / / land for irrigation access road construction, and thus no land acquisition is required. 14.86 km of river course / 105.03 / 139.8 desilting Road improvement, without Separat 7 Wuhe County Subproject 1 pumping station 13 / / / / 420 requirement of additional e land acquisition Resettl ement 9.9 km of road Plan construction in the / 32 / / compile industrial park d 1 new surface water The pipeline is laid along works, 54 km of water / 39.69 / / Yuanmo Rd. delivery pipeline

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Land Acquisition Permanent LA Temporary land Affecte (mu) occupation (mu) d House SL. Project Components Construction Contents Populat Remarks demolition ion State- Collectiv State- Collecti (m2) owned e owned ve (perso n) 1 new WWTP and supporting pipelines and 21 km of attached / 68 / / pipeline; 17 km of storm water pipeline. Upgrading of 2 water- Separat logging pumping 12 / / / e

stations Resettl Huaiyuan County 8 2122 2036 ement Subproject 14 km of pipelines 33.7 / Plan

/ 811.6 compile 8.6 km of road / / d Subtotal 1128 2727.9 542.2 2676.5 105679.8 11128

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1.3 Project Preparation and Progress of Resettlement Action Plan In March 2006, The 3URMHFW3URSRVDOVIRU%HQJEX,QWHJUDWHG(QYLURQPHQW 3URMHFWwas approved by Anhui Development and Reform Commission. In September 2006, the BIEIP was identified by the World Bank Mission. After that, the Project Management Office of the Steering Group of BIEIP (PMO) entrusted China Municipal Engineering Mid-South Design and Research Institute to compile the feasibility study report. At the same time, the development of the RAP and Environment Impact Assessment were also started. With the great joint efforts of the BPMO, IAs, Consultants and Hefei Municipal Engineering Design Institute Co. Ltd., this preparatory works of the project were proceeded with smoothly. Based on the numerous surveys, this consolidated Resettlement Plan of BIEIP was completed in July 2007 and submitted to the World Bank Mission for initial reviews for the purpose of developing a practical and feasible Resettlement Action Plan through incorporating the comments of the World Bank. The progress and the resettlement action plan of the project are shown in Table 1-2.

Table 1-2 Project Preparation and Progress of Resettlement Action Plan Projec Compon Project Feasibility Project Proposal RAP t ents Study Report Design Design Design Status Institut Status Institut Status Institut e e e China Complete Municip July d & Hefei al 2007, Hefei approved Municip July Enginee Resettle Municip BIEIP BIEIP by Anhui al 2006, ring ment al Deevelop Enginee complete Southw Plan Enginee ment and ring d and est complete ring Reform Design awaiting Design d and Design Commissi Institut for and submitte Institut on in e Co. approval Researc d to WB e Co. March Ltd., h for Ltd., 2006 Institut review e

1.4 Measures for Reducing Resettlement In the stages of project planning and design, many possible considerations have been, through scheme optimization, given on how to mitigate the negative impacts of the project on the local social economy. For à 5 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN example, when land acquisition is inevitable, the priorities are given to the use of barren land, wasteland and state-owned land instead of farmland. When demolition cannot be avoided, the volume of demolition is minimized. These have become the critical factors for scheme optimization. Detail measures in this regard are shown in Table 1-3.

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Table 1-3 Measures for Reducing Resettlement Impacts by Project Measures for Reducing SL. Components Construction Contents Quantity Reduced IAs Resettlement 140m building-crossing of storm- Drainage pipeline of Daqing No.2 Rd. water pipeline of Daqing No.2 Rd. (Jianghuai Rd. – Baligou), D2000- substituted by pipe-jacking to avoid Demolition of 10 400m & D2200 – 220m, including demolition. Pipe-laying on the west households avoided Urban infrastructure road restoration. end requires temporary occupation Bengbu Construction 1 Subproject of the garbage. Commission Drainage pipe of Nanhu Rd. (Tushan Using pipe-jacking for the storm Rd. – Overfly ramp), D1200 – 1031m, Demolition of 25 Bengbu City water pipe of Nanhu Rd., 150m of incl. Road restoration and railway households avoided south Xuehua Rd. crossing on north section. Reducing Reduce the landscaping area for 155.21mu of Huaishang District 30m range from the north of collective land 2 Flood release channel Huaishang District Subproject concrete flood release channel to acquisition; foot of the dyke. reducing 42119.5 m² of demolition. Guzhen County Left dyke of Jiegou, including dyke Avoid demolition of Shuiniuwangjia About 1800m² of 3 Guzhen County Subproject construction and dredging village. demolition avoided Water Conservancy Bureau Based on the field survey, within the 600m westward from Huaitang Rd., The IA and FSR there are a lot of residential houses compiler were 4 Huaiyuan County Subproject Drainage pipeline, Jianshe Rd. Huaiyuan County and stores. The institute compiling convinced to avoid FSR was suggested to adopt pipe- this area jacking, or detour this area.

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1.5 Identification of Associated Works Associated works refer to the works that have a linkage to components financed under the project, or those works which are proposed to be financed using non-Bank funds. During project design, the IAs had attached great importance to the identification of these associated works. The BPMO, IAs and DI have made corresponding analysis of all the components of this project. Upon analysis, the following Subproject s have the associated works: (1) Xijiagou and Baligou Subproject , urban infrastructure Subproject , Huaiyuan County Subproject and Wuhe County Subproject . Details are shown in Table 1-4. Table 1-4 Profile of Associated Works Associated Works Subproject Name / Funds Time for LA & Remarks Contents Source Demolition

Baligou ditch Construction on Xijiagou & (Tushan Rd. – Domestic river course, Bligou Huai River funds without LA & Subproject outfall) demolition

LA, demolition LA, demolition and and resettlement resettlement of activities were about 230 mu completed Yangtaizi Japan’s of farmland was before the WWTP ODA completed in involving of the Urban July 2004. WB identification infrastructure Works to be mission3 years Subproject started in 2008. ago Acquisition of Chengnan Implement the 120 mu of WWTP in Domestic resettlement farmland; LA to High-Tech funds policy framework be started in District of the Project 2008. Langanqiao The works to be flood- started in non- Construction on discharge flood period, i.e. Huaiyuan state-owned pumping Domestic October – County vacuum land, station in the funds November, 2007. Subproject without LA & center section No LA and demolition of Huaiyuan demolition urban area involved.

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Associated Works Subproject Name / Funds Time for LA & Remarks Contents Source Demolition Retroactive Resettlement review on completed in Reserved land resettlement Domestic December of Wuhe completed funds 2006, totally industrial park. 1100 mu It was done Wuhe reserved. consistent with County Bank policy Subproject Un-acquired land of Wuhe Implement the industrial park Domestic Resettlement resettlement (out of land funds not started policy framework scope of the of the Project Project)

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2 Project Impacts

2.1 Investigation of Project Impacts According to the requirement of the WB and the PMO, from February 25 – March 15, 2007, the IAs, Demolition Office, Land Resources Administration Bureau, House Demolition Administration Department and other relevant departments made joint investigation of 100% detail of the land acquisition, temporary land occupation, relocated households, enterprises and stores etc. At the same time, the socio-economic situation of the affected villages, streets and communities were also surveyed. All the affected people had participated in the survey of land acquisition impacts. In addition, the survey group also listened to and extensively discussed with the villagers, enterprise, institution and stores on the issues of land acquisition and demands on resettlement. This survey of in-kinks was conducted under the guidance of the resettlement specialists, adopting 100% household survey and field measurement. The socio-economic survey adopted 20% sampling method, covering the Districts, towns, villages and individuals affected by the project. The arrangement of the project survey is detailed in Table 2-1.

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Table 2-1 Arrangement of Project In-Kind Indicators Survey SL. Components Location Time of Survey Method of Survey Arrangement Demolition office, houses administration bureau, land Xijiagou & Bligou resources bureau; New High-Tech investment group, 1 High-Tech District 2007.2.182007.3.15 Subproject planning bureau of high-tech District, land resources 100% household bureau of high-tech District; water resources bureau. survey, field measurement, 20% Construction commission, demolition office, houses Urban area, high-tech administration bureau, land resources bureau; New High- Urban household socio- District, Tech investment group, planning bureau of high-tech infrastructure 2007.2.259.15 economic survey Economic District, land resources bureau of high-tech District; Bengbu Subproject Development District economic development investment company, land 2 City resources bureau of economic development District Construction commission, demolition office, Longzihu Urban area, Economic houses administration bureau, land resources bureau; 2007.2.259.15 Subproject Development District economic development investment company, land resources bureau of economic development District Huaishang Demolition office, house administration bureau, land 3 District Huaishang District 2007.2.182007.3.15 resources bureau; Huaishang District economic bureau; Subproject water resources bureau Organized by DRC of Guzhen County, comprising of water resources bureau, construction bureau, environmental 4 Guzhen County Subproject Chengguan town 2007.2.253.12 protection bureau, land resources bureau, forestry bureau, Chengguan township government. Mohekou industrial Organized by County’s DRC, administrative committee of 5 Wuhe County Subproject 2007.2.25.3.15 park the industrial park, land resources bureau. Huaiyuan County DRC, water resources bureau, 6 Huaiyuan County Subproject Huaiyuan County 2007.2.182007.3.15 construction bureau, Chengguan town

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2.2 Range of Project Impacts The land acquisition and demolition of BIEP financed by the WB will affect Bengbu city, Huaiyuan County, Guzhen County and Wuhe County, totall 11 towns with 46 villages, of which: (i) Qiuqiao village of Hubin community only has permanent land acquisition; (ii) Four villages of Xiao Bengbu town and Wuxiaojie town of Huaishang District only have demolition; (iii) 10 villages, respectively Mengzhuangju village and Wafangju village of Chengguan town, Junli village of Hubin community, Daihu village of Huaihe community, as well as Xiaoyangjia village, Xiaolujia village, Jiajiagang village, Walizhang village and Shangcheng village of Longzihu District only have temporary land occupation and land attachments; (iv) Gudongju village only has house demolition in urban area. The range of impacts are shown in Table 2-2.

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Table 2-2 Summary of Impacted Villages of the Project SL. Components Town / District Affected Villages Remarks Ben Changqing Jiulongji village gbu town City High-Tech Xijiagou & Shannan village 1 Bligou District Subproject Dongzhou village, Qinji village, Daxu village, Qinji town Jianggu village, Laoguanxu village Yanshan town Jinxu village, Taodian village Qinji town Dongzhou village, Daxu village, Qinji village Changqing Jiulingji village, Zhengcun village, Huangshan

town village Yanshan town Jinxu village Urban infrastructure Qiuqiao village with 2 Subproject Hubin Qiuqiao village, Shangnan village, Xuhua permanent LA; Junli community village, Junli village village with temporary land occupation Huaihe With temporary land Daihu village community occupation only Longzihu Longzihu Xiaoyangjia, Xiaolujia, Jinjiagang, Xiaozhujia, With temporary land Subproject District Walizhang, Shangcheng villages occupation only Xiao Bengbu Shanxiang village, Houlou village, Chentai 3 Huaishang District town village, Xiao Bengbu village, Gao’an village Subproject

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SL. Components Town / District Affected Villages Remarks Subproject Binhe Zhengdu village, Wuxiaojie village, Wuxiaojie town Huaishang village

Dayingju, Mengzhuangju, Huiheju, Wafangju, Mengzhuangju and Gudongju, Wafangju only have Guzhen County Chengguan temporary land 4 Subproject town Wuli village, Qili village, Dalou village, occupation; Gudongju Songdian village, Longtan village, Liuzhuang only has town house village, Xixu village demolition. Wuhe County 5 Mohekou town Tuanjie village, Tangchen village Subproject Huaiyuan County Chengguan 6 Meicun village, Dongmiao village Subproject town

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2.3 Project Impacts On the basis of the in-kind survey and analysis, the types of impacts of the project mainly include: (i) impacts of losses caused by land acquisition / occupation; (ii) impacts of demolition of residential houses and land attachments; (iii) impacts of demolition of non-residential houses (mainly of enterprise and stores); and (iv) land attached facilities.

2.3.1 Affected Population The land acquisition and resettlement of BIEIP financed by the WB have impacts on a total population of 11128 people, among them (i) 2422 households with 9127 people are impacted by permanent acquisition of the collective land, accounting for 82.02% of the total impacted populace; (ii) 77 households with 267 people are impacted by demolition of urban residential houses, accounting for 2.4%; (iii) 405 households with 1710 people are impacted by demolition of rural residential houses, accounting for 15.37%; and (iv) 4 stores with 24 persons, accounting for 0.22%. Details are shown in Table 2-3.

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Table 2-3 Summary of Population Affected by the Project

Collective Land Demolition of Urban Demolition of Rural Enterprise Affected Institution Affected Stores Affected Acquisition Residential House Houses Total SL. Types of Impacts Affected Affected Affected Affected Affected Affected APs APs APs APs APs APs (Persons) Households Households Households Households Households Households (person) (person) (person) (person) (person) (person) (nos) (nos) (nos) (nos) (nos) (nos)

Xijiagou &

1 Bligou 299 1075 0 0 10 48 0 0 0 0 0 0 1123

Subproject

Urban Bengbu 2 infrastructure 1056 3468 28 90 205 929 0 0 0 0 0 0 4487 city Subproject

Huaishang

3 District 223 852 0 0 187 714 0 0 0 0 0 0 1566

Subproject

4 Guzhen County Subproject 259 1376 28 101 3 19 0 0 0 0 0 0 1496

5 Wuhe County Subproject 101 420 0 0 0 0 0 0 0 0 0 0 420

Huaiyuan County 6 484 1936 21 76 0 0 0 0 0 0 4 24 2036 Subproject

Total 2422 9127 77 267 405 1710 0 0 0 0 4 24 11128

Proportion 82.02% 2.40% 15.37% 0.00% 0.00% 0.22% 100%

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2.3.2 Permanent Acquisition and Temporary Occupation of Collective Land The BIEIP financed by the WB will involve acquiring totally 2727.88 mu of collective land on permanent basis, including: 2380.9.7mu of paddy land, accounting for 87.3%; 186.4.5 mu of dry land, accounting for 6.8%; 144.1 mu of house site, accounting for 5.3%; 16.5 mu of fish ponds, accounting for 0.6%. . Details are shown in Table 2-4. Most of the construction and material stacking are placed within the construction alignments or on the state-owned roads or greenbelts, Except that Longzihu Subproject has high impacts of temporary land occupation, other Subproject s have little impacts of temporary land occupation. The Project will occupy 2677.5 mu of collective land on temporary basis, including 1796.2 mu of paddy field and 881.3 mu of fish ponds. Details are shown in Table 2-5. Table 2-4 Summary of Permanent Acquisition of Collective Land Directly Impacted Land Acquisition (mu) Population SL. Types of Impacts Affected Paddy Dry House Fish APs Subtotal Households Field land Sites Pond (person) (nos) Xijiagou & 1 Bligou 412 28 18.6 458.6 299 1075 Subproject Urban Bengbu 2 infrastructure 869.1 3 97.8 16.5 986.4 1056 3468 City Subproject Huaishang 3 District 141.5 0 24.7 166.2 223 852 Subproject Guzhen County 4 7 155.38 3 165.38 259 1376 Subproject Wuhe County 5 139.7 0 0 139.7 101 420 Subproject Huaiyuan County 6 811.6 0 0 811.6 484 1936 Subproject Total 2380.9 186.38 144.1 16.5 2727.88 2422 9127 Proportion 87.3% 6.8% 5.3% 0.6% 100.0%

Table 2-5 Summary of Temporary Occupation of Collective Land

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Temporary Land Occupation (mu) SL. Types of Impacts Paddy Fish Pond Field 1 Xijiagou & Bligou Subproject 0.0 2 Urban infrastructure Subproject 149.4 Bengbu City 3 Longzihu Subproject 1424.5 881.3 4 Huaishang District Subproject 82.5 5 Guzhen County Subproject 139.8 Total 1796.2 881.3

2.3.3 Permanent (Temporary) Acquisition of State-owned Land The Project will permanently occupy 1128 mu of state-owned land that are assigned free of charge, occurring in urban Subproject , Huaishang District Subproject , Guzhen County Subproject , Wuhe County Subproject and Huaiyuan Subproject . The project will occupy 542.2 mu of state-owned land on temporary basis, occurring in urban Subproject , Huaishang District Subproject , Guzhen County Subproject and Huaiyuan Subproject . Details are shown in Table 2-6. Table 2-6 Summary of State-Owned Land Affected by the Project Temporary Permanent land Occupation occupation SL. Types of Impacts (mu) (mu) Assignment 1 Xijiagou & Bligou Subproject 0 0 Urban infrastructure 2 798.1 380 Bengbu City Subproject 3 Longzihu Subproject 0 0 4 Huaishang District Subproject 206.4 67.5 5 Guzhen County Subproject 98.5 61 6 Wuhe County Subproject 13 0 7 Huaiyuan County Subproject 12 33.7 Total 1128 542.2

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2.3.4 Demolition of Residential Houses Demolition of residential houses of the project include demolition of rural residential houses and town houses. The total demolition area of the project is 103160.3.61, including 98227.1.41 of rural residential houses (accounting for 95.2% of the total), 4933.2 of urban residential area (accounting for 4.8%). (1) Demolition of rural residential houses In BIEIP, demolitions of rural residential houses mainly occur in Xijiagou Subproject , Bengbu water-logging control Subproject , Huaishang District Subproject and Guzhen County Subproject . In this regard, the project will demolish a total area of 98227.1.4 of rural residential houses, covering 96522.6.0 of brick-concrete structure (98.26% of total rural residential area)1328.8.7 of brick-wood structure (1.35%), 81.8 of earth-wood structure (0.08%) and 293.9 of simple structure (0.3%), impacting 405 households with 1710 persons. Details are shown in Table 2-7.

Table 2-7 Summary of Demolition of Rural Residential Houses by the Project

Rural Residential Houses (m²) Affected APs SL. Types of Impacts Brick Brick Earth- Households Simple Subtotal (person) Concrete Wood Wood (nos) Xijiagou & 1 Bligou 2482.6 0 0 0 2482.6 10 48 Subproject

Urban 2 Bengbu infrastructure 61662.9 274.14 69.75 62006.78 205 929 City Subproject

Huaishang 3 District 32277.1 865.94 293.92 33437 187 714 Subproject

Guzhen County 4 100 188.7 12 300.7 3 19 Subproject Total 96522.6 1328.8 81.75 293.92 98227.08 405 1710 Proportion 98.26% 1.35% 0.08% 0.30% 100.00%

(2) Demolition of urban or town houses Demolition of urban residential houses mainly occur in Bengbu urban water-logging Subproject , Guzhen County Subproject and Huaiyuan Subproject . The project will demolish a total area of urban residential area of 4933.2, including 1963.3 brick-concrete structure (39.8% of total urban residential area)2853.1 of brick-wood structure (57.9%), 108.6 of earth-wood structure (2.2%) and 8.2 of simple structure (0.1%), impacting 77 households with 267 persons. Details are shown in Table 2-8. Table 2-8 Summary of Demolition of Urban Residential Houses by the Project

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Urban Residential Houses (m²) Affected Remarks APs SL. Types of Impacts Brick Brick Earth- Households Simple Subtotal (person) Land Category Concrete Wood Wood (nos) Xijiagou & 1 Bligou 0.0 0.0 0.0 0.0 0.0 0 0 Subproject Urban Bengbu 2 infrastructure 107.72 708.67 8.2 824.6 28 90 Category-II City Subproject Huaishang 3 District 0.0 0.0 0.0 0.0 0.0 0 0 Subproject Guzhen County 4 549.6 1819.4 53.6 2422.6 28 101 Subproject Wuhe County 5 0.0 0.0 0.0 0.0 0.0 0 0 Subproject Huaiyuan County 6 1306.0 325.0 55.0 1686.0 21 76 Subproject Total 1963.32 2853.07 108.6 8.2 4933.2 77 267 Proportion 39.8% 57.9% 2.2% 0.1% 100.0%

2.3.5 Demolition of Non-residential Houses Demolition of non-residential houses only affect stores in Huanyuan Subproject . There are 4 stores to be demolished, with a total area of 436.0.4m² and affecting 24 persons, including 262.0.69m² of brick-concrete structure (accounting for 60.1% of the total store demolition area), 174.0.74m² of brick-wood structure (accounting for 39.9% of the total store demolition area). Details area shown in Table 2-10. Table 2-9 Summary of Demolition of Stores by the Project Affected Degree Demolition Area Types of APs SL. Quantity of Reinforced Brick Brick Impacts (person) Simple Subtotal (nos) Impacts Structure Concrete Wood Huaiyuan 1 County 4 24 All 0.0 262.0 174.0 436.0 Subproject Total 4 24 / 0.0 262.0 174.0 436.0 Proportion / / / 0.0% 60.1% 39.9% 0.0% 100.0%

2.3.6 Unregistered Houses The project will demolish 2083.5.65m² of unregistered houses (accounting for 2.0% of the total demolition area of the project), including 1653.6.1m² of rural houses (accounting for 79.4% of the total unregistered houses), 430.0.0m² of urban houses (accounting for 20.6% of total unregistered houses). Details are shown in Table 2-10. Table 2-10 Summary of Demolition of Un-registered Houses by the Project

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Un-registered Houses (m²) SL Types of Impacts Rural Residential Town Enterp Stor . Total Houses Houses rise es Xijiagou & 1 Bligou 245.3 0.0 0.0 0.0 245.3 Beng Subproject bu Urban City 1838. 2 infrastructur 1408.3 430.0 0.0 2 e Subproject 2083. Total 1653.6 430.0 0.0 0.0 5 0.0 100.0 Proportion 79.4% 20.6% 0.0% % %

2.3.7 Vulnerable Groups Among the impacted people, 7 households with 11 persons belong to vulnerable groups, accounting for 0.12% of the total population. This only occurs in Huaishang District Subproject . Details are shown in Table 2-11.

Table 2-11 Summary of Vulnerable Groups Affected by the Project Solitary Elderly Poverty Disable Woman-headed Family Total Family Per Types of SL. son Impacts Household Persons Household s Persons Household Persons Household Persons Household (nos) (nos) (person.) (nos) (pe (person.) (nos) (person.) (nos) (person.) rso n.) Huaishang 1 District 1 5 0 0 0 0 6 6 7 11 Subproject

Total 1 5 0 0 0 0 6 6 7 11

2.3.8 Land Attachments The project will impact totally 14 types of land attachments and public facilities, mainly including concrete floor, trees, fence wall and well etc. Details are shown in Table 2-12.

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Table 2-12 Land Attachments Affected by the Project Low- High- Concrete Fence voltage Electric Cultivation Concrete Guard Shelter Tree voltage Transformer Bridges well Grave Ground wall Power Poles Pool Container Room SL. Types of Impacts Powerline Line pcs km pcs km Unit nos pcs m3 nos Xijiagou & 1 Bligou 18500 3450 1200 153 0 0 0 0 0 0 0 0 0 0 Subproject

Urban 2 Bengbu infrastructure 0 0 0 460 0 0 0 0 0 0 0 0 City Subproject

Huaishang 4 District 3000 2700 1000 38044 10 500 12 1 300 1 1500 0 20 Subproject

Guzhen County 5 30 145 12 10319 0 0 0 0 0 0 2 0 40 0 Subproject Wuhe County 6 0 0 0 0 0 0 0 0 0 0 0 0 Subproject Huaiyuan County 7 18500 3450 1200 153 0 0 0 0 0 0 0 0 Subproject Total 40030 9745 3412 49129 10 500 12 1 300 1 1502 0 40 20

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3 Socio-Economic Profiles of the Project Area

The project covers one city (Bengbu city) and three counties (Huaiyuan County, Guzhen County, Wuhe County). The basic socio-economic conditions of the affected city and counties are as the follows: Bengbu City. Bengbu City of Anhui Province is located in the central area of Huai-hai catchment areas. It has a total area of 5952k, serving as the vital communication stronghold and playing an important role in the socio- economic development of Anhui province. The city administers four urban Districts, respectively Longzihu District, Bengshan District, Yuhui District and Huaishang District, three counties, respectively Huaiyuan County, Wuhe County and Guzhen County. There are totally 36 townships, 19 towns (incl. 1 minority town), 19 sub-District offices, 1247 villagers’ committees and 204 community committees. Bengbu city is rich in agricultural by-products and abundant in grain, oil, vegetable, meat and aquatic products. The peanut production volume of Guzhen County ranks the top in China. The guava of Huaiyuan County enjoys good reputation nationwide. The crabs of Wuhe County is famous all over the world. Huaiyuan County. Huaiyuan town is the political, economic and cultural center of Huaiyuan County. It is a landscape city integrated with food processing, agricultural machinery manufacturing and tourism. Huaiyuan County is located in the middle reaches of Huaihe River, administering 19 towns and 365 administrative villages, with a total area of 2326km² and a total population of 1.26 million. In 2005, the GDP of the County was RMB 6.15 billion. The annual average salary of workers was RMB 9700, while the annual average net income of farmers was RMB 2760. The balance of deposits of residents was RMB 3.14 billion. The social undertakings, such as sciences, education, cultural and sanitation, and the national economy develop quickly in a harmonious way. Chengguan town is the homer station of the people’s government. The government office has now moved to Wucha town. Chengguan town has 6 administrative offices, totally 23 community committees. According to the statistics, by end of 2002, the total population of Huaiyuan County was 1.2569 million. The population in the built-up area was 0.125 million. The total land- use area was 10.65km², with average per-capita land use of 85.25m². The construction density and the population density of the downtown area are high and the living environment is poor. The average per-capita construction land- use is especially low. The permanent population was 87010 people, while the temporary population was 9744 people. The total population was 96754

Ã23 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN people. The total area is about 3.79 km2, The average per-capita land use is only 39.2. According to the0DVWHU3ODQRI+XDL\XDQ&RXQW\7RZQRI +XDL\XDQ&RXQW\ (2003-20220), in short term, the population is 140000 in 2005; in middle term, the population will be 200000 by 2010; in long term, the population will reach 300000 by 2020. Wuhe County. Wuhe County is located in the mid and lower reaches of Huaihe River in the northeast Anhui province, being famous for the five incoming rivers, respectively Huaihe river, Huihe river, Chonghe river, Donghe river and Tuohe river. It was under the jurisdiction of Su County after founding of China and was administered by Bengbu city since 1983. The total area of the County is 1595km², of which, 79.4% of plain, 8.9% of hills and 11.7% of rivers and lakes. It has a total population of 0.7113 million and administers 13 township, 2 towns and 224 villages. In 2005, the GDP was RMB 4.497 billion, increasing 12.6% than that of the previous year. Of which, the growth respectively of the primary, secondary and tertiary industries were respectively 0.2%, 34.9% and 16.4%. The investment in fixed assets of the whole society was RMB 1.142 billion, increasing by 118.3%, of which, the township fixed assets investment was RMB 440 million, increasing 90.5%; the total volume of retail sales of the social consumption was RMB 1282 million, increasing 12% than the previous year. The average per-capita on-job salary was RMB 11016, increasing 34% than that of the previous year; farmer’s average per-capita net income was RMB 2832, increasing 3.8% than that of the previous year. Wuhe County implements a brand strategy on full scale. It sticks to the targets of creating provincial and city-level top quality agricultural products, green foods and green agricultural products, thus making remarkable achievements. There are nearly 40 famous brands for agricultural products that have the local characteristics of Wuhe County, including the brands of “Tuohu”, “Hexiang”, “Haibaiyugong”, “Tianjing”, “Chundi”, “Suhe”, “Ruiri”, “Niupai”, “Xiangjianhu”, “Jialv”, “Wanxiang” and “Wu’an” etc. In 2004, the “Hanbaiyugong” rice, “Tuohu” crab, “Chundi” noodle and “Suhe” ric won the title of city-level top agricultural products; “Hanbaiyugong” rice passed the national certification as green agricultural product; “Guohu” crab won the titles of “Famous Brand of Anhui Province” and “Ten Top Chinese Crabs”. In 2005, “Hanbaiyugong” rice won the title of “Chinese Famous Brand”; “Tuohu” crab, “Hanbaiyugong” rice, “Chundi” noodle and “Suhe” rice passed the national certification of green foods. Chengguandoudong “Jialv” pear production base, the wild-pig domestic raising base of Daxin Xinghua Ecological Agricultural Development Co. Ltd., and Yang’an Farm Oil and Cereals & Oils Production Base passed the national certification of green food; “Huanxiang” peach of Changhuai Horticultural Farm and “Jialv” pear of Chengguandoudong passed the certification of green agricultural products. “Hexiang” brand of Seeds Company and the “Tuohu” brand of Tuohu Economic Development Corporation

Ã24 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN were appraised as the “Famous Brand of Anhui Province” by the provincial industrial and commercial bureau. Mohekou industrial park is located in Mohekou town of Wuhe County near to the downtown area of Bengbu city. It is only 15km from the downtown, 150km away from the provincial capital Hefei city and Nanjing city. Water and power supply, transportation are convenient. Mohekou Chemical Industrial Park is a place for development of fine chemicals of Bengbu city. It has been enlisted as the key construction project in the “11th Five-Year Plan” of the City, serving as an industrial base of chemical industry for the whole city. It is also the important carrier in undertaking the industrial transfer from the Yangtze River Delta and business promotion, as well as the base and economic supporting point for Wuhe County to implement its strategy of becoming a “strong County in industry”. The long-term total planned area of the industrial park is 30km². The first phase is 5km². By now, the planning of the park has been completed and approved by the municipal government. The infrastructure construction has been fully initiated, and the business introduction in cooperating with Hong Kong Jiaolong Group etc. is underway smoothly. Guzhen County. Guzhen County is under the jurisdiction of Bengbu city, located in the northeast of Anhui province and on the north bank of the middle reaches of Huaihe river. The County is plain geographically, with the altitude of 16.0-22.5m. The total area is 1371km², including 1.054 million mu of cultivated land. It administers 11 towns, 227 village (community) committees. The total population is 0.598 million. The built-up area of the County town is 7.4km², with a population of 100000 people. Guzhen County has good locational advantages. It connects with Xuzhou to the north and within the economic radiation of the big cities of Shanghai, Nanjing and Xuzhou. The County has advantageous conditions. Beijing- Shanghai Raiway and S101 provincial highway runs through the County. He- Xu expressway runs by the County, and waterway can lead to the Yangzi River via Huihe river. Ever since its establishment, the County has been sticking to the development conception of “adjustment, reform, innovation, opening”, and so the national economy and social development have made remarkable achievements. In 2004, the GDP was RMB 2.468 billion, of which, the industrial added value was RMB 440 million. The structure of the three industries was 45.4:26.9:27.7, and the financial revenue was RMB 118.06 million. Guzhen County is an important agriculture County rich in the resources of agricultural products. It is the important provincial base for production of grains, oils, cotton, tobacco, livestock and forest. It was successively evaluated as the national major counties for commercial grains production, national pilot County for cereals and oils production base, the national second larges oils

Ã25 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN production County, boer goat industrialized project County of the MOF, provincial top counties for agricultural mechanization etc. The industry of the County develops very quickly, covering extensive fields in agricultural product processing, machinery, construction materials, foodstuff, zymotechnique etc., covering over 50 varieties. In 2001, the gross industrial value was RMB1.756 billion. By now, the County has formed a complete industrial system featured by deep processing of agricultural by-products, and gradually grows into the largest one in the northern area of Anhui province. Guzhen is now on the track of quick development. The County town has basically formed a embryo of a modern city and stands in the critical period of becoming a modern medium and small city.

Table 3-1 Major Economic Indicators of City / Counties Affected by the Project Huaiyua Bengbu Wuhe Guzhen City Affected n city County County County Total Population (10000 347.0 127.2 70.5 59.7 person) Male (10000 person) 179.7 66.6 36.5 30.8 Populatio Female (10000 person) 167.3 60.6 34.0 28.9 n Agricultural population 256.5 114.1 62.3 52.0 (10000 person) Non-agricultural 90.5 13.1 8.2 7.7 population (10000 person) Rural population (10000 263.0 114.7 63.4 55.3 person) Labor force (10000 139.8 69.0 40.5 33.7 person) Rural Labor in primary industry populatio 99.3 43.4 21.8 23.2 (10000 person) n Labor in seondary industry 21.1 10.2 2.7 5.2 (10000 person) Labor in tertiary industry 30.8 11.4 12.7 3.7 (10000 person) Cultivate Total cultivated land 448.4 204.9 105.0 105.4 d land Paddy Field (10000 mu) 138.0 69.1 44.8 8.1 Dry Land (10000mu) 226.9 66.6 51.4 97.4 Others (10000mu) 83.5 69.2 8.9 0.0 Total cultivated area 899.6 356.0 260.9 217.1 (10000mu)

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Huaiyua Bengbu Wuhe Guzhen City Affected n city County County County Grains (10000mu) 592.3 267.4 181.7 100.1 Production Volume 215.6 101.4 63.5 35.5 (10000T) Oils (10000mu) 139.9 33.0 41.1 60.8 Production Volume 37.4 8.4 11.1 16.7 (10000T) Others (10000mu) 163.6 28.7 5.2 26.2 Production Volume 230.7 2.4 0.6 1.7 (10000T) GDP (RMB100 million) 263.7 56.2 37.1 34.6 Value (RMB Primary 65.7 17.3 7.7 9.5 industr 100m) y Proportion (%) 24.9 30.8 20.9 27.4 Second Value (RMB 108.9 23.6 19.9 16.4 ary 100m) Productio industr n Value y Proportion (%) 41.3 42.0 53.5 47.5 Value (RMB Tertiary 89.1 15.3 9.5 8.7 industr 100m) y Proportion (%) 33.8 27.3 25.7 25.1 Average per-capita GDP 7906.0 4439.0 5269.0 5781.0 (RMB) Towners’ per-capita average disposable 8109.8 / / / income (RMB) Income Farmer’s annual average per-capita net income 2683.3 2650.1 2727.6 2716.3 (RMB)

From Table 3-1, among the three counties affected by the project, the urban scope and economic aggregate of Huaiyuan County are far higher those of Wuhe County and Guzhen County. The urban scope and economic aggregate of Wuhe County and Guzhen County are identical. In terms of industrial structure of the project area, rice, wheat and rapeseed plant are the key crops. The industrial production value of the primary industry of the affected area accounts for less than 1/3 of the GDP (Huaiyuan is the highest, 30.8%). This indicates that the non-agricultural development of the project

Ã27 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN has been developed to a certain level. Viewing from the level of economic development, the average per-capita GDP of Huaiyuan County, Wuhe County and Guzhen County are lower than the average figure of Bengbu city. However, the towner’s per-captita average disposal income is not substantially different from the average per-capita net income of rural residents. It is found that, the towner’s per-capita average disposal income is RMB 8100 – 8400, while the rural farmer’s average per-capita net income is RMB2600-2800. This is slightly higher than the average level of Anhui province, but lower than the national average level.

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4 Legal Framework and Policies

In order to undertake the works of land acquisition and resettlement, safeguard the legal benefits of the affected individuals and institutions to facilitate the project implementation, the policy for the land acquisition, house demolition and resettlement of BIEP are formulated pursuant to the relevant laws and regulations of the People’s Republic of China, Anhui Province, Bengbu City and the local governments, as well as the 2SHUDWLRQDO3ROLFLHVIRU ,QYROXQWDU\5HVHWWOHPHQW(OP4.12) of the World Bank. The resettlement shall be implemented strictly in accordance with the relevant policy stipulated in the RAP. Any changes thereto during implementation should gain the prior approval of the World Bank.

4.1 Policy Framework

The policy framework of BIEIP are shown in Table 4-1.

Table 4-1 Summary of Applicable Policy for the Project Date of Policy Documents Effectiveness

/DQG$GPLQLVWUDWLRQ/DZRIWKH3HRSOH V5HSXEOLF August 28, 2004 RI&KLQD

5HJXODWLRQVIRUWKH,PSOHPHQWDWLRQRIWKH/DQG December. 27, $GPLQLVWUDWLRQ/DZRIWKH3HRSOH¶V5HSXEOLFRI 1998 &KLQD

'HFLVLRQRIWKH6WDWH&RXQFLORQ'HHSHQLQJ October 21, , 5HIRUPDQG6WUHQJWKHQLQJ/DQG$GPLQLVWUDWLRQ 2004 Ref. GF[2004]28; 5HJXODWLRQVRQ/DQG$FTXLVLWLRQ&RPSHQVDWLRQ Nation DQG5HVHWWOHPHQWIRU/DUJHDQG0HGLXP:DWHU September 1, al 5HVRXUFHVDQG+\GURHOHFWULF&RQVWUXFWLRQ3URMHFWV 2006 (Decree No.471, State Council) *XLGHOLQHVIRU6WUHQJWKHQLQJ/DQG$FTXLVLWLRQ &RPSHQVDWLRQDQG5HORFDWLRQ6\VWHP, Ref. Nov. 3, 2004 No.GTZF[2004]238.

&LUFXODURI6WDWH&RXQFLOFRQFHUQLQJ August 31, 2006 5HLQIRUFHPHQWRI/DQG&RQWURO, GF[2006]31 $GPLQLVWUDWLYH5HJXODWLRQVIRU8UEDQ%XLOGLQJ 'HPROLWLRQDQG5HORFDWLRQ (Decree No.305 of the Nov. 1, 2001 State Council)

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Date of Policy Documents Effectiveness 3URYLVLRQVRI$QKXL3URYLQFHRQ,PSOHPHQWLQJ /DQG$GPLQLVWUDWLRQ/DZRIWKH3HRSOH¶V5HSXEOLF July 1, 2004 RI&KLQD revised) 3URYLVLRQVRI$QKXL3URYLQFHRQ0DQDJHPHQWRI Anhui (Decree 8UEDQ%XLOGLQJ'HPROLWLRQDQG5HORFDWLRQ July 1, 2003 Provinc No.153 of the People’s Government of Anhui e Province) &LUFXODURQ6WDQGDUGL]LQJ/DQG$FTXLVLWLRQ &RPSHQVDWLRQDQG5HVHWWOHPHQWDQG February 15, 0DQDJHPHQWRI6HWWOHPHQWRI&RPSHQVDWLRQ 2007 'LVSXWHV, WGTZ[2007]54

City &RPSHQVDWLRQ6WDQGDUGVIRU$FTXLVLWLRQRI &ROOHFWLYH/DQGIRU8UEDQ3ODQQHG&RQVWUXFWLRQRI July 1, 2002 %HQJEX&LW\ (trial), BZB[2002]53 Bengb u city 3URYLVLRQVRI%HQJEX&LW\RQ0DQDJHPHQWRI May 1, 2005 8UEDQ%XLOGLQJ'HPROLWLRQDQG5HORFDWLRQ &LUFXODU6WUHQJWKHQLQJWKH0DQDJHPHQWRI5XUDO December 19, /DERUV BZ[2006]133 2006

Counti es &LUFXODURQ'LVWULEXWLQJWKH&RPSHQVDWLRQ Wuhe 6WDQGDUGVRI:XKH/DQG5HVRXUFHV WZB[2006]28 County $GPLQLVWUDWLRQ%XUHDXIRU$FTXLVLWLRQRI&ROOHFWLYH /DQGLQ:XKH(FRQRPLF'HYHORSPHQW'LVWULFW &LUFXODURI'LVWULEXWLQJWKH:RUNLQJ3URFHGXUHVRI :XKH&RXQW\IRU3URYLVLRQRI(PSOR\PHQW WZ[2006]55 7UDLQLQJDQG6RFLDO6HFXULW\IRU)DUPHUV:KRVH /DQGV+DYH%HHQ5HTXLVLWLRQHG $SSURYDORIWKH3HRSOH¶V*RYHUQPHQWRI$QKXL 3URYLQFHIRU/DQG8VH2YHUDOO3ODQQLQJRI:XKH WZM[2006]13 &RXQW\  

Guzhe &LUFXODURQ'LVWULEXWLQJWKH%DVH3ULFHVDQG n 'HPROLWLRQ6XEVLGLHV6WDQGDUGVIRU0RQHWDU\ County &RPSHQVDWLRQIRU'HPROLWLRQRI8UEDQ+RXVHVRI *X]KHQ&RXQW\ GZ[2005]46

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Date of Policy Documents Effectiveness 3URYLVLRQDO0HWKRGVRI+XDL\XDQ&RXQW\IRU/DQG $FTXLVLWLRQ&RPSHQVDWLRQDQG5HVHWWOHPHQWIRU HZ[2004]62 WKH3ODQQHG$UHDRI&RXQW\7RZQ 5XOHVIRU,PSOHPHQWDWLRQRI/DQG$FTXLVLWLRQDQG +RXVH'HPROLWLRQLQ3ODQQHG$UHDRI+XDL\XDQ HZ[2004]63 &RXQW\

Huaiyu ,PSOHPHQWDWLRQ5XOHVIRU$SSOLFDWLRQRI8UEDQ an /RZHVW/LYLQJ6WDQGDUGIRU)DUPHUV:KR+DYH HZ[2004]64 County 7UDQVIHUUHGWR1RQ$JULFXOWXUDO+RXVHKROG 5HJLVWUDWLRQLQ+XDL\XDQ&RXQW\ ,PSOHPHQWDWLRQ5XOHVIRU3URYLVLRQRI(QGRZPHQW ,QVXUDQFHIRU)DUPHUV:KRVH/DQGV+DYH%HHQ HZ[2004]65 5HTXLVLWLRQHG &RPPHQWVRQ6WUHQJWKHQLQJ&RQVWUXFWLRQ 0DQDJHPHQWRI8UEDQ3ODQQHG$UHDLQ&RXQW\ HZ[2004]68 7RZQ

Policy OP 4.12, and ,QYROXQWDU\5HVHWWOHPHQW January 1, 2002 World Appendixes Bank Procedure BP 4.12, and ,QYROXQWDU\5HVHWWOHPHQW January 1, 2002 Appendixes

4.2 Main Principles

The objective of project resettlement policy is to minimize the adverse affects brought by land acquisition and demolishment. Displaced persons3 will be provided compensation at full replacement cost4 for losses of assets and

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

4 "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 Ã31 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN assisted to restore even surpass former living standards. Main policies as follows: ¾When possible, resettlement plans should be conceived as development opportunities, so that those affected may benefit from project activities. ¾Lack of legal rights does not bar displaced persons in peaceful possession from compensation or alternative forms of assistance. ¾Compensation rates refer to amounts to be paid in full to the individual or collective owner of the lost asset, without deduction for any purpose. Also indificual owners receive compensation for affected structures and other fixed assets, and villages or DPs receive compensation for acquired land in rural areas. ¾When cultivated land is acquired, it often is preferable to arrange for land-for-land replacement through collective land redistribution. In some cases, as when only small proportions of income are earned through agriculture, alternative measures such as payment of cash or provision of employment are acceptable if preferred by the persons losing agricultural land. ¾Replacement houseplots, sites for relocating businesses, or redistributed agricultural land should be of equivalent use value to the land that was lost. ¾Transition periods should be minimized. Compensation should be paid prior to the time of impact, so that new houses can be constructed, fixed assets can be removed or replaced, and other necessary measures can be undertaken before displacement begins. ¾Displaced persons are consulted during the planning process, so their preferences regarding resettlement arrangements are considered; resettlement plans are disclosed in a publicly accessible manner. ¾The previous level of community infrastructure and services and access to resources will be maintained or improved after resettlement.

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.

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¾The borrower is responsible for meeting costs associated with land acquisition and resettlement, including contingencies. ¾Resettlement plans include adequate institutional arrangements to ensure effective implementation of resettlement measures. ¾Resettlement plans include arrangements for internal and external monitoring of resettlement implementation. ¾Resettlement plans include procedures by which displaced persons can pursue grievances. ¾Resettlement plans include arrangements for internal and external monitoring of resettlement implementation.

4.3 Overviews of Project Policies

4.3.1 Acquisition of Collective Land and Resettlement. The principles, standards, procedures and monitoring mechanism of the project related to land acquisition and resettlement shall be formulated according to /DQG$GPLQLVWUDWLRQ/DZRIWKH3HRSOH¶V5HSXEOLFRI&KLQD 'HFLVLRQRIWKH6WDWH&RXQFLORQ'HHSHQLQJ5HIRUPDQG6WULFWO\(QIRUFLQJ/DQG $GPLQLVWUDWLRQ (Ref. No. GF[2004] 28), *XLGHOLQHVIRU6WUHQJWKHQLQJ/DQG $FTXLVLWLRQ&RPSHQVDWLRQDQG5HORFDWLRQ6\VWHP (Ref. No.GTZF[2004]238), 5HJXODWLRQVRQ/DQG$FTXLVLWLRQ&RPSHQVDWLRQDQG5HVHWWOHPHQWIRU/DUJHDQG 0HGLXP:DWHU5HVRXUFHVDQG+\GURHOHFWULF&RQVWUXFWLRQ3URMHFWV (No.471 Decree of the State Council), 3URYLVLRQVRI$Q¶KXL3URYLQFHRQ,PSOHPHQWLQJ /DQG$GPLQLVWUDWLRQ/DZRIWKH3HRSOH¶V5HSXEOLFRI&KLQD revised), as well as relevant regulations of cities and counties concerned. (1) Land requisitioned shall be compensated for on the basis of its original purpose of use. Compensation for requisitioned cultivated land shall include compensation for land, resettlement subsidies and attachments and young crops on the requisitioned land. As for land compensation and resettlement subsidies for acquisition of cultivated land, the urban area of Bengbu city shall adopts 23 times of the annual average output value (AAOV), while Guzhen County, Wuhe County and Huaiyuan County shall adopt 16 times of AAOV. As for the AAOV of cultivated land, Bengbu city and Huaiyuan County shall adopt RMB1200/mu, Guzhen County RMB1161/mu and Wuhe County RMB1000/mu. The compensation for the land attachments and for the young crops shall belong to the owners. (2) The land compensation and resettlement subsidies shall be paid to the affected villagers’ committee or APs, being used in (i) increasing the area of cultivated land, if possible; (ii) improve agriculture through upgrading the irrigation and working methods etc.; (iii) develop non-agricultural incomes

Ã33 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN based on the existing activities; and (iv) serve as social security or endowment insurance for the displaced farmers.

4.3.2 Permanent Acquisition of State-owned Land. This project belongs to the public services, and so the state-owned land shall be obtained through land assignment. In case there involves state-owned agricultural land and resettlement, the policy thereof shall refer to those for requisitioning rural collective land.

4.3.3 Temporary Land Occupation. The compensation for temporary occupation rural collective land shall be made according to the duration and losses incurred, including crops compensation and land restoration expenses. The duration of occupation shall be maximally two years. After occupation, who will recover the occupied land shall be determined jointly by the representatives of the APs, village collective organization and the IAs.

4.3.4 Residential House Demolition & Resettlement. 1 Demolition of rural houses In demolition of rural houses, the displaced people can get the compensations made according to the structures of the houses to be demolished. At the same time, they will also get moving allowances and the in- advance moving rewards. There are three means of resettlement, respectively monetary compensation, exchange of property rights and self-rebuilding with self-demolition. (i) As for those choosing monetary compensation, the amount of compensation shall be determined according to the legal floorage area and at the replacement costs of different structures. (ii)As for those choosing exchange of property rights, the demolition unit shall compute the compensation based on the legal floorage area and at the replacement costs, build the resettlement area according to the unified planning and provide with the houses as exchange for the displaced people. In this case, the prices of the houses for resettlement shall be determined by the pricing administrative department. (iii) As for those choosing self-rebuilding with self-demolition, the compensation shall be made according to the replacement costs of the demolished houses, and the displaced people may choose the house sites for to rebuild, provided that they are conforming to the planning. The house sites shall be arranged by the villagers’ committee in a planned and unified way, and the necessary expenses thereof shall be debited from the compensation

Ã34 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN for house sites. The area of house site of self-building shall be limited to 160m² each household. 2 Demolition of urban residential houses The compensation standards and resettlement for demolishing urban residential houses shall be determined according to $GPLQLVWUDWLYH5HJXODWLRQV IRU8UEDQ%XLOGLQJ'HPROLWLRQDQG5HORFDWLRQ (Decree No.305 of the State Council)3URYLVLRQVRI$QKXL3URYLQFHRQ0DQDJHPHQWRI8UEDQ%XLOGLQJ 'HPROLWLRQDQG5HORFDWLRQ(Decree No.153 of the People’s Government of Anhui Province)3URYLVLRQVRI%HQJEX&LW\RQ0DQDJHPHQWRI8UEDQ%XLOGLQJ 'HPROLWLRQDQG5HORFDWLRQ, as well as relevant policies of the cities and counties concerned. The dislocated people thereof will get house demolition compensation, moving subsidies, in-advance moving award and subsidies for temporary relocation. Compensation for the demolition of urban residential houses shall implement the forms of monetary compensation or exchange of property rights. The dislocated people shall have the rights to choose the form of compensation. (i) Monetary compensation. The amount of monetary compensation shall be decided based on the evaluated price in the real estate market. In case the evaluated price thereof is lower than that specified in the RAP, the latter shall prevail; or, the dislocated people may negotiate a mutually-agreed amount of compensation with the demolition unit based on the base price announced by the government. (ii) Exchange of property rights. In this case, the dislocated people and the demolition unit may, through referring to the method of monetary compensation, determine the compensation amount of the demolished houses and the price of relocating houses. The demolition unit should resettle the dislocated people within the specified transition period (maximally 18 months). (iii) The vulnerable groups shall enjoy the preferential policies.

4.3.5 Non-residential House Demolition & Resettlement. The compensation standards for demolishing urban non-residential houses, enterprise and institution, as well as stores shall be determined according to $GPLQLVWUDWLYH5HJXODWLRQVIRU8UEDQ%XLOGLQJ'HPROLWLRQDQG 5HORFDWLRQ (Decree No.305 of the State Council)3URYLVLRQVRI$QKXL3URYLQFH RQ0DQDJHPHQWRI8UEDQ%XLOGLQJ'HPROLWLRQDQG5HORFDWLRQ(Decree No.153 of the People’s Government of Anhui Province)3URYLVLRQVRI%HQJEX&LW\RQ 0DQDJHPHQWRI8UEDQ%XLOGLQJ'HPROLWLRQDQG5HORFDWLRQ, as well as relevant policies of the cities and counties concerned.

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The compensation for demolition of non-residential houses by the project shall include house compensation and business suspension subsidies. The demolition of non-residential houses by the project shall be compensated according to the replacement cost appraised by eligible qualified real estate appraisal organization. The amount of monetary compensation shall be determined according to the base price announced by the government at the time of issuing the demolition license by giving considerations to the factors of location, structure, floorage area, stories and decoration etc. The real estate appraisal organization should listen to the comments of the dislocated people before starting the appraisal. On this basis, the compensation prices for the demolished houses shall be negotiated. Like demolition of urban residential houses, demolition of non-residential houses shall also adopt the methods of monetary compensation and exchange of property rights.

4.3.6 Special Facilities and Land-attached Structures. All the special facilities affected by the project will be re-constructed as per the requirements. The IAs will make compensation according to the amount mutually agreed by the administrative departments of these facilities, or include such amount in the project budget. The reconstruction shall be conducted according to the original function, scope and standards. The compensation for demolition of the land attachments shall be paid directly to the owners.

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5 Compensation Standards

The compensation standards applicable to this project are formulated according to the above legal framework and the actual conditions of the city, District and County that are affected by the project.

5.1 Compensation Standards for Acquisition of Rural

collective Land

According to /DQG$GPLQLVWUDWLRQ/DZRIWKH3HRSOH¶V5HSXEOLFRI&KLQD *XLGHOLQHVIRU6WUHQJWKHQLQJ/DQG$FTXLVLWLRQ&RPSHQVDWLRQDQG5HORFDWLRQ 6\VWHP, as well as the relevant regulations and rules of Anhui province, Bengbu city and the three counties regarding the implementation of /DQG$GPLQLVWUDWLRQ /DZRIWKH3HRSOH¶V5HSXEOLFRI&KLQDthe land acquisition compensation shall include land compensation, resettlement subsidies and crops compensation. Compensation for land, resettlement subsidies and crops compensation shall be computed as per the unified AAOV as shown in Table 5-1. The compensation standards for acquisition of rural collective land are shown in Table 5-2. The land acquisition taxes and charges are shown in Table 5-3.

Table 5-1 AAOV Standards for Land Acquisition Compensation Project Components City(District)/County AAOV (RMB/mu) Xijiagou & Bligou High-Tech District 1200 Subproject of Bengbu city Urban infrastructure High-Tech District Bengbu City 1200 Subproject of Bengbu city Huaishang District Huaishang District 1200 Subproject of Bengbu city Guzhen County Subproject Guzhen County 1161 Wuhe County Subproject Wuhe County 1000 Huaiyuan County Subproject Huaiyuan County 1200

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Table 5-2 Compensation Times and Standards for Acquisition of Collective Land in Bengbu City and Counties Times Compensation Standards (RMB/mu) City / Types of AAOV Land Resettlement Crop Land Resettlement Crop County Land (RMB/mu) Subtotal Subtotal Compensation Subsidy Compensation Compensation Subsidy Compensation

Bengbu Paddy Field 1200 8 15 0.5 23.5 9600 18000 600 28200 city Dry land 1200 8 15 0.5 23.5 9600 18000 600 28200 Wuhe Cultivated 1000 6 10 0.5 16.5 6000 10000 500 16500 County land Paddy Field 1161 6 10 16.0 6966 11610 600 19176

Guzhen Dry land 1161 6 10 16.0 6966 11610 600 19176 County Forest Land 1161 6 10 16.0 6966 11610 18576 House Sites 1161 6 10 16.0 6966 11610 18576 Huaiyuan Cultivated 1200 10 6 0.5 16.5 12000 7200 600 19800 County land Village Recipients Private Private Collective

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Table 5-3 Summary of Taxes and Charges for Lang Acquisition Farmland Farmland Foundation Land Paid Use Re-measurement City / Types of occupation reclamation for Water Acquisition Total Fee Charges County Land tax (RMB charges Works Administration (RMB/mu) (RMB/mu) (RMB/mu) /mu) (RMB/mu) (RMB/mu) Fees (RMB/mu) Paddy 28000 5000 5333 500 1500 50 40383 Bengbu Field city Dry land 28000 5000 5333 500 1500 50 40383 Wuhe Cultivated 9338 3502 4002 500 820 50 18212 County land Paddy 9333 3500 4000 500 1500 50 18883 Field Dry land 9333 3500 4000 500 1500 50 18883 Guzhen Forest County 9333 3500 4000 500 1500 50 18883 Land House 9333 3500 4000 500 1500 50 18883 Sites Huaiyuan Cultivated 9333 3500 4000 500 1500 50 18883 County land

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5.2 Compensation Standards for Permanent Occupation of

State-owned Land

The land acquisition of this project belongs to the urban infrastructure land use. According to the laws and regulations, the state-owned land can be acquired through assignment.

5.3 Compensation Standards for Temporary Occupation of

Collective Land

The compensation for temporary use of agricultural land includes compensation of young crops, cost of land recovery and cost of restoration of soil. The compensation for crops will be calculated based on actual time of occupation. The detailed compensation rate for each item is reflected in Table 5- 4.

With regard to temporary occupation of state-owned land, there will have no land compensation if there is no people to be affected. But demolition of the land attachments shall be compensated based on their replacement costs. Otherwise, the IA shall be responsible for re-construct according to the original standard and scope. The expenses thereof shall be covered by the project investment.

Table 5-4 Summary of Compensation of Temporary Occupation of Rural Collective Land Land Fertility Crops Restoration City / Types of Loss Total Compensation Charges County Land Compensation (RMB/mu) (RMB/mu/season) (RMB/mu) (RMB/mu) paddy/dry 600 1000 600 2200 Bengbu land city Fish Pond 1200 1000 600 2800 Guzhen Cultivated 600 2000 1400 4000 County land

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5.4 Demolition of residential houses

5.4.1 Compensation Standards for Demolition of Urban Residential Houses. Compensation for the demolition of urban residential houses shall be made at the replacement costs appraised by eligible qualified real estate appraisal organization. In the project preparation stage, the calculation of the replacement costs (land price included) should be made based on the compensation policy for demolition of residential houses of different structures and location in city or County. Also, the compensation standards in this connection should also take into consideration of the prices of the commercial houses, second-handed houses. The compensation standards for the relocating houses for various structures are shown in Table 5-5.

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Table 5-5 Compensation Standards for Demolition of Urban Residential Houses Compensation for Urban Houses Other Compensations (RMB/m²) SL. Components City(District)/County Subsidies for Moving Reward for Brick Brick Temporary Subsidies Advance Moving Concrete Wood Relocation (RMB/m²) (RMB/household) (RMB) Xijiagou & High-Tech District of 1 Bligou / / / / / Bengbu city Bengbu Subproject City Urban 0.5% of house High-Tech District of 2 infrastructure 2000 1800 10 monetary 3000 Bengbu city Subproject compensation 0.5% of house Guzhen County 3 Guzhen County 900 900 10 monetary 3000 Subproject compensation 0.5% of house Huaiyuan County 4 Huaiyuan County 2000 1900 10 monetary 3000 Subproject compensation

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5.4.2 Compensation Standards for Demolition of Rural Residential Houses. The replacement costs for demolition of rural residential houses should be estimated according to the compensation policy of relevant city or counties for the different structures and locations. Details are shown in Table 5-6. Those choosing monetary compensation shall also get the compensation for house site (computed as per the land occupied by the house, at RMB 28/m²).

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Table 5-6 Compensation Standards for Demolition of Rural Residential Houses. Compensation standards for demolition of Other Compensations Comprehensive rural houses House Support (RMB/m²) Sites SL. Components City(District)/County Charges (RMB) Moving (RMB) Reward for Brick Brick Subsidies Advance Moving Concrete Wood (RMB/household (RMB/household) ) Xijiagou & High-Tech District 1 Bligou 400 350 28 / 1500 3000 of Bengbu city Subproject High-Tech District, Urban Economic Bengbu 2 infrastructure Development 400 350 28 / 1500 3000 City Subproject District of Bengbu city Huaishang Huaishang District 3 District 400 350 28 112 1500 1500 of Bengbu city Subproject Guzhen County 4 Guzhen County 400 280 28 / 1000 1500 Subproject

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5.5 Compensation Standards for Demolition of Non-

residential Houses.

The demolition of non-residential houses of stores by the project affect only 4 stores of Huaiyuan County, which shall be compensated according to the evaluated price appraised by eligible qualified real estate appraisal organization according to the structure, location and purpose. The compensation for demolition of stores shall include house demolition compensation, business suspension charges and moving subsidies etc., as shown in Table 5-7.

Table 5-7 Compensation Standards for Demolition of Stores Compensation Standards Other Compensations (RMB/m²) Business- Components City(District)/County Moving Reinforced Brick Brick suspension Subsidies Structure Concrete Wood Subsidies. (RMB/m²) (RMB) As per 0.6% of the Huaiyuan compensation County Huaiyuan County 2000 1900 10 for house Subproject demolition each month.

5.6 Compensation Standards for Un-registered Houses

Un-registered houses are the temporary shelters. They are not the residential houses of the APs that should be compensated according to the construction costs. The compensation standards for un-registered houses are shown in Table 5-8.

Table 5-8 Compensation Standards for Un-registered Houses Compensation Standards (RMB/m²) Urban (incl. SL. Components City(District)/County Rural Area Stores) Brick Brick Brick Brick Concrete Wood Concrete Wood Xijiagou & Bengbu High-Tech District 1 Bligou 100 80 City of Bengbu city Subproject

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Urban High-Tech District 2 infrastructure 100 80 500 350 of Bengbu city Subproject

5.7 Compensation Standards for Infrastructure and Ground

Attachments

Compensation for the ground attachment and public facilities shall be made according to the replacement costs.

Ã47

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Table 5-9 Compensation Standards for Ground Attachments Low- Concrete Fence voltage Guard Shelter Electric Poles High-voltage Powerline Transformer Cultivation Pool Bridges well Concrete Container Grave SL. Types of Ground wall Power Room Impacts Line km pcs km Unit nos pcs m3 nos

Bengbu 1 12 12 10 35000 100 60000 45000 3000 15000 80 80 100 90 City

Huaiyuan 2 County 12 12 10 35000 100 60000 45000 3000 15000 80 80 100 90 Subproject

Guzhen 3 County 12 12 10 35000 100 60000 45000 3000 15000 80 80 100 90 Subproject

Table 5-10 Compensation Standards for Trees on Collective Land Program: Species Ordinary Trees Ordinary Fruit Trees Name Above Above Bengbu city, DBH (cm) 5 6-10 11-15 16-20 21-25 26-30 5 6-10 11-15 16-20 20 30 Huaiyuan County, Guzhen County Compensation 1 1.5 8 10 15 20 30 30 60 90 120 150 amount (RMB)

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6 Plan for Production and Living Rehabilitation

The objectives of resettlement of this project are: (i) ensure that all APs can get full amount of compensation and be reasonably resettled and restored.; (ii) the APs can share the benefits brought by the construction of the project; (iii) the APs may receive assistance in settling their temporary difficulties; (iv) the incomes and livelihood of the APs and the productive and profit-making capacity of enterprises can be restored to or even better than the previous levels before the project.

6.1 Resettlement for Permanent Land Acquisition

This project will make 3855.88 mu of permanent land acquisition, including 1128 mu of state-owned land (29.3%) and 2727.88 mu of collective land (70.7%).

6.1.1 Assignment of State-owned Land According to the laws, regulations and policy of Anhui province, Bengbu city and relevant counties, the state-owned land will be assigned free of charges.

6.1.2 Permanent Acquisition of Collective Land (1) Analysis of project impacts The project will make permanent land acquisition of 2727.88 mu of collective land, including 2567.3 mu of cultivated land, affecting 29 villages with 2422 households and 9127 persons. As seen from the statistical analysis, land acquisitions, even with large area, are scattered in different places. Among the 29 villages affected by land acquisition, the land loss rate of 23 villages (50.0%) is less than 10%. Viewing from affected households, the average per-household land loss is 0.03 mu, averagely 3.5% per household. There are 2 villages, respectively Dayingju and Meicheng villages, that have over 50% of impacts caused by land acquisition; others are all below 20%. Dayingju village of Chengguan town of Guzhen County is within the urban planning. Presently, it has 12 mu of farmland, averagely per-capita 0.004 mu. The villagers have transferred as the non-agricultural population, and the main income sources are from out-going work and small business in the urban area. The project will acquire 5.2 mu of land, indicating impact rate of 43.3%. The impact caused by land acquisition on income is only 2.13%. Meicheng village of Huaiyuan County is located in the near outskirt. The main income sources of the farmers thereof are from out-going work and small business. According to the socio-economic survey of the affected households, Ã50 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN the lands of most of the households have not been acquired. The income from the farmland accounts for less than 15% of the total income, and thus land acquisition will not substantially affect their life. In addition, based on the socio-economic survey of the project area, the incomes from the cultivated land of the displaced farmers account for about 0- 26% of their total incomes. Their major income sources are from non- agricultural earnings, of which, earnings from out-going employment and business engagement become the main sources of the non-agricultural incomes. Since the major income sources are from non-agricultural activities, and the lands of most of the farmers have not been requisitioned, so, the impacts on the local villagers caused by the project would be very much limited. Therefore, land acquisition would have very little impacts on the displaced people.

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Table 6-1 Impact Analysis of Land Acquisition

Before LA After LA Total Total Average Cultivated Average Rate of SL. Components District / County Towns Village Households Population Cultivated Per- Land Per- LA (%) (nos) (person) Land (mu) capita (mu) capita

1 Bengbu City Huangshan village 740 2000 2300 1.15 189 1.06 8.22%

2 Changqing town Jiulongji village 340 970 1780 1.84 93 1.74 5.22%

3 Zhengcheng village 880 2800 3600 1.29 18 1.28 0.50%

4 High-Tech District Shannan village 47 202 242 1.20 22 1.09 9.09%

5 Dongzhou village 510 1820 2114 1.16 228 1.04 10.79%

6 High-Tech District Daxu village 420 1740 2300 1.32 56.4 1.29 2.45%

7 Qinji town Qinji village 980 3560 2809 0.79 167 0.74 5.95%

8 Laoguanxu village 590 2090 1700 0.81 86 0.77 5.06%

9 Jianggu village 640 2670 3860 1.45 26 1.44 0.67%

10 Jinxu village 630 1960 2030 1.04 212.2 0.93 10.45% Yanshan town 11 Taodian village 1020 3000 510 0.17 12 0.17 2.35%

12 Road construction Qiuqiao village 490 1600 3400 2.13 96.5 2.06 2.84% in Economic 13 Hubin community Shannan village 400 1200 1800 1.50 35 1.47 1.94% Development 14 District Xuehua village 2200 5700 1600 0.28 71 0.27 4.44%

15 Huaishang District Xiao Bengbu village 1173 3009 460 0.15 31.3 0.14 6.80% Xiao Bengbu town 16 Houlou village 1330 3801 235 0.06 47.6 0.05 20.26%

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Before LA After LA Total Total Average Cultivated Average Rate of SL. Components District / County Towns Village Households Population Cultivated Per- Land Per- LA (%) (nos) (person) Land (mu) capita (mu) capita

17 Wuxiaojie town Huaishang village 749 2986 2286 0.77 62.6 0.74 2.74%

18 Dalou village 375 1588 2012 1.27 42.2 1.24 2.10%

19 Dayingju 841 3158 12 0.00 5.2 0.00 43.33%

20 Longtan village 426 1924 3983 2.07 33.8 2.05 0.85%

21 Guzhen Qili village 567 2610 4705 1.80 9.12 1.80 0.19% County Guzhen County Chengguan town 22 Subproject Songdian village 466 2362 5683 2.41 31.23 2.39 0.55% 23 Wangjianxu 567 2610 4705 1.80 7.32 1.80 0.16%

24 Wuli village 620 2824 6248 2.21 18.36 2.21 0.29%

25 Xixu village 1087 3736 211 0.06 15.15 0.05 7.18%

26 Huaiyuan Dongmiao village 1002 4205 2237 0.53 340.5 0.45 15.22% County Huaiyuan County Chengguan town 27 Subproject Meicheng village 928 3748 1421 0.38 471.1 0.25 33.15%

28 Wuhe Tangchen village 611 2072 3624 1.75 100 1.70 2.76% County Wuhe County Mohekou town 29 Subproject Tuanjie village 609 2344 6018 2.57 39.69 2.55 0.66%

21238 74289 73885 0.99 2567.27 0.96

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3  Measures for resettlement and restoration Currently, as for acquisition of the land contracted by farmer households, on one hand, the contracting period of 30 years remains unchanged in China; on the other hand, a majority of collective organizations do not have optional lands for re-distribution. As such, in the views of village cadres and villagers, it would be impossible to re-distribute the lands to those farmers with their lands requisitioned. In addition, in this project, except for very few farmer households, the area of the requisitioned land is limited. Even with compensation of equal area of land, the farmers would not accept the remote small discarded land. As indicated by the field survey, almost all the affected households hold the positive attitude to the project construction. They think that the project will improve their living environment and avoid the frequent flooding. In addition, they prefer monetary compensation for the land acqisition. This method is simple and easily operative. The farmers may freely use the compensation to restore production and living. As indicated in the above analysis, land acquisition of the project will have different-degree impacts on the villages, and so the rehabilitation scheme should be formulated according to the degree of impacts, availability of the remained land resources and the willingness of the APs. Upon full consultation with the villager’s committee and individuals during socio-economic survey, a number of economic rehabilitation plans have been worked out.

Table 6-2 Impact Analysis of Households Caused by Land Acquisition

Degree of Impacts (Household) Means of Resettlement No. of Agricultural Components Affected 100- 75- 50- 25- Below Cash to Non- Social 100% Households. 75% 50% 25% 10% 10% compensation Agricultural Assurance Status Xijiagou & Bligou 299 0 0 39 125 85 50 299 34 53 Subproject

Urban infrastructure 1056 0 0 0 43 141 872 1056 0 0 Subproject Huaishang District 223 0 0 0 50 121 52 223 0 0 Subproject Guzhen County 259 0 0 6 31 28 194 259 8 10 Subproject

Wuhe County 101 0 5 23 40 33 0 101 9 28 Subproject Huaiyuan County 484 1 34 227 168 39 15 484 102 135 Subproject Total 2422 1 39 295 457 447 1183 2422 153 226

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As for the land contracted by farmers, the schemes for income restoration are: (1) Cash compensation. The amount of compensation shall be calculated based on the compensation standards and the area of the requisitioned farmland and be directly paid to the APs. Then, the affected households can use this amount to undertake other agricultural or non-agricultural activities, such as growing economic crops , engaging in other sideline business or small business. As discussed with the affected households, the methods for distribution of land compensation and resettlement subsidies are determined as shown in Table 6-3. (2) “Transferring agricultural to non-agricultural household status”. The rural households who satisfy the requirements on “transferring agricultural to non- agricultural household status” will be covered by the urban community administration. They can enjoy the benefits of the “minimum living standard safeguarding” (MLSS)5. (3) Social Assurance. The rural households who satisfy the requirements on “transferring agricultural to non-agricultural household status” will be covered by the urban community administration. They can participate in the endowment insurance for the displaced farmers. According to the &LUFXODURQ3ULQWLQJDQG,VVXLQJWKH3URYLVLRQDO5HJXODWLRQVIRU,VVXLQJ (QGRZPHQW,QVXUDQFHWR)DUPHUVZLWK/DQG5HTXLVLWLRQHG (Ref. BZ[2007]90, the male farmers aged 60 or above and the female farmers aged 55 or above who are covered endowment issuance upon approval shall be issued the 3HQVLRQ&HUWLILFDWHIRU)DUPHUVZLWK/DQG5HTXLVLWLRQHG. These farmers shall get the pension from the coming month after obtaining the certificate. (i) Those without participating in endowment insurance, each person will get RMB 80 each month; (ii) Those participating in the endowment insurance and paying RMB 3600 of insurance premium, each person will get RMB 110 each month, of which, the basic pension is RMB 80 and additional pension is RMB 30; (iii) Those participating in the endowment insurance and paying RMB 7200 of insurance premium, each person will get RMB 140 each month, of which, the basis pension is RMB 80, additional pension is RMB 60; (iv) Those participating in the endowment insurance and paying RMB 10800 insurance premium, each person will ge RMB 170 each month, of which the basic pension is RMB 80, and the additional pension is RMB 90. (4) Resettlement with reserved land. As for the land acquisition in Wuhe industrial park, the land reserve center will assign some reserved land to the affected village to construct standard factory buildings. In this way, the affected persons can get rent each year. As for acquisition of the village collective land, the compensation shall be retained in the collective organization as the special funds to be used in infrastructure and public good services, such as construction of farmland irrigation facilities, roads and subsidies to the solitary elderly.

 For MLSS, Bengbu city RMB 210 /month; Huaiyuan County RMB 160 /month; Guzhen County RMB 166 /month;

Wuhe County RMB 176 /month. Ã

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In addition, during the whole process of production restoration, the IAs will offer possible assistance, including the main measures of: (1) The APs will have the priority in getting jobs from the project construction; hence will increase their cash incomes. (2) The APs will have the priority in participating in labor transfer within the range of the counties affected by the project. (3) As for the APs, the project has designed a series of activities of technical consultation and training, covering the aspects of agricultural technical training for economic crops and non-agricultural knowledge training etc. In this connection, concerned technical professionals of the agricultural and labor protection departments will be invited to the relocated area to provide with trainings concerning about agricultural cultivation. In this way, the each affected household will receive at least one time of agricultural technical training and non-agricultural technical training. These measures can help increase the quality and productivity of crops, increase the economic incomes of the APs and restore the livelihood of the APs. In addition, partial compensation funds of the collective ownership will be used to reclaim farmland and grow economic forest, so that the farmer’s living standard can be restored.

Table 6-3 Distribution of Land Compensation and Resettlement Subsidies Distribution (RMB Compensation (RMB10000 /mu) /mu) Components Land Resettlement Crop Grand Collective Private Compensation Subsidy Compensation Total Xijiagou & Bligou 9600 18000 600 28200 9600 18600 Subproject Urban Bengbu infrastructure 9600 18000 600 28200 9600 18600 City Subproject Huaishang District 9600 18000 600 28200 9600 18600 Subproject Guzhen County 6966 11610 600 19176 7430 11746 Subproject Wuhe County 6000 10000 500 16500 6000 10500 Subproject Huaiyuan County 12000 7200 600 19800 1920 17880 Subproject

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6.2 Recovery of the Temporarily Occupied Land

The total area of temporary occupation of collective land by the project shall be 2677.5 mu. According to the socio-economic survey, the temporary land occupation is caused by construction arrangement, earth borrowing, back-filling and spoil area. The farmers affected by temporary land occupation shall be compensated on season-for-season time-based principle (less than two years). The compensation for the temporary occupation of collective land is higher than the actual loss, and thus the living standards of the villagers will not be affected thereof. The restoration can be conducted by the collective, farmer household or the IAs. Who will recover the occupied land shall be determined jointly by the representatives of the APs, village collective organization and the IAs. The principles for restoration of temporary land occupation are: ¾The affected farmer’s households shall have the priority. Such will help the APs get job opportunities and increase the family incomes. It will also ensure the quality of restoration. If the affected households and the village collective are unwilling to undertake the restoration, the restoration shall be organized by the IAs. ¾The acceptance inspection for the restored temporarily-occupied land shall be conducted jointly the collective organization and the representatives of APs according to the standards as set herein: (i) Surface earth should be protected under strict measures to avoid un- restorable occasion; (ii) When cutting, the surface earth (30-50cm in thickness recommended) should be stacked aside separately, for which, necessary measures for avoiding soil erosion should be provided. (iii) After construction, in order to minimize the negative impacts on soil quality, it is to back-fill the bottom earth, then evenly cover with the surface earth and level the site. (iv) The hardened land during the construction should be ploughed loose immediately after the completion.

6.3 Compensation and Resettlement of Residential Houses

6.3.1 Urban Residential Houses Demolition of urban residential houses mainly occur in Bengbu urban water- logging Subproject , Guzhen County Subproject and Huaiyuan Subproject . The total demolition area of the project will be 4933.2m², affecting 77 households with 267 people. The compensation shall be made according to the replacement price evaluated by the qualified appraisal organization that is selected by the APs. The price evaluation shall be made according to the factors such as location, house structure, purpose, story and direction etc. The means for resettlement have Ã57 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN two options, respectively monetary compensation and exchange of property rights.

Table 6-4 Survey on Resettlement Willingness of APs Willingness in Resettlement (household) No. of Living Exchange Components 2 Affected Proportion Monetary Remarks Area (m ) of Property Combined Households. compensation. Rights. Below 30 7 9.1% 7 m² 3050 12 15.6% 12 Bengbu city 5070 8 10.4% 1 7 70 m² 1 1.3% 1 plus Below 40 5 6.5% 5 m² 40 6 7.8% 6 80 80100 4 5.2% 1 3 Guzhen County 100130 5 6.5% 2 3 130150 5 6.5% 5 150 m² 3 3.9% 3 plus 025 5 6.5% 5 2550 1 1.3% 1 5085 7 9.1% 7 Huaiyuan County 85120 4 5.2% 4 120 m² 4 5.2% 4 plus Total 77 100.0% 25 44 8 Proportion 32% 57% 11%

Urban Subproject : the compensation standard is RMB 1800-2000/m². As per the average price in the current real estate market of Bengbu city (RMB 1800/m²), the displaced people can buy the second-handed houses6 of the same structure and same location with the compensation amount. As for

 The age of the second-handed house is less than that of the house to be demolished. Ã

Ã58 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN demolition of residential houses, change of property rights will be also available, exchanging the same area of legally-built area. In Taodian resettling residential area, demolition will be returned with the same area of houses, with minimum resettling area of 35m². As for the un-registered houses, the demolition shall be compensated as per the cost price (RMB 500/m² for brick-concrete structure; RMB 350/m² of brick-timbre structure). Huanyuan County Subproject : The compensation standard RMB 1900- 2000/m². As per the average price in the current real estate market therein (RMB 1500/m²), the dislocated people can easily buy the commercial houses or second-handed houses of the same structure and same location with the compensation amount. The APs are willing to accept the method of monetary compensation. Guzhen County Subproject : as per RMB 900/m² for house demolition. The resettlement shall be made based on the demolished residential area and according to the principle of exchange of property rights. The amount of compensation shall be computed as per the base prices (RMB 840/m² for class- I; RMB 720 for class-II).

6.3.2 Rural Residential Houses

In BIEIP, demolitions of rural residential houses mainly occur in urban water-logging control Subproject of Bengbu city, Huaishang District Subproject and Guzhen County Subproject . The project will demolish rural residential houses a total area of 98227.08.1, affecting 405 households with 1710 people. There are three means of resettlement, respectively monetary compensation, exchange of property rights and self-rebuilding with self- demolition. Urban Subproject (High-tech District, Economic Development District) : In addition to the monetary compensation made at replacement price (RMB 400/m² for brick-concrete structure; RMB 350 for brick-wood structure), these dislocated people can also get the compensation for the house sites (RMB 28 /). As for those choosing “exchange of property rights” for resettlement, according to the floorage area of the previous house, one household can get a house of maximum 160m². In case that the area of the previous house exceeds 160m², as for the excessive part, an additional compensation of RMB 660/m² shall be paid if such excessive part is within 32m²; those exceeding 32m² shall be compensated at RMB 400/m². Huaishang District Subproject : In addition to the monetary compensation made at replacement price (RMB 400/m² for brick-concrete structure; RMB 350 for brick-wood structure), these farmers can also get the compensation for the house sites (RMB 28//) and RMB 112 // facilities compensation. As for those choosing “exchange of property rights”, the prices of resettlement houses within the range of land acquisition shall be computed as

Ã59 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN per the preferential price (RMB 540/m²), cost price (RMB 760/m²) and market evaluated price (RMB 1030/m²). On average, each person can enjoy 25m² of resettling area, and the total resettling area of one household shall be limited to an area of 192m². (i) In case that the demolished registered area is larger than the eligible area to be resettled, the eligible area to be resettled shall be computed as per the preferential price; If within demolished registered area but exceeding the eligible area to be resettled, the exceeded part shall be computed as per the cost price; If exceeding both the demolished registered area and the eligible area to be resettled, the exceeded part shall be computed as per the market evaluated price. (ii) In case that the demolished registered area is less than the area to be resettled, the area within the registered area shall be computed as per the preferential price; the area exceeding the registered area but less than the eligible area to be resettled shall be computed as per the cost price; the area exceeding both the registered area and the eligible area to be resettled shall be computed as per the market evaluated price. Guzhen County Subproject : In addition to the monetary compensation made at replacement price (RMB 400/m² for brick-concrete structure; RMB 280 for brick-wood structure), these dislocated people can also get the compensation for the house sites. Those choosing migratory resettlement may choose house sites to construct their house but subject to the planning. The house sites shall be arranged by the villagers’ committee in a planned and unified way, and the necessary expenses thereof shall be debited from the compensation for house sites. The area of house site of self-building shall be limited to 160m² each household.

Table 6-5 Survey on Resettlement Willingness of Rural APs

Willingness in Resettlement (household) Living No. of Exchange Self- Components Area Affected Proportion Remarks 2 Monetary of demolishing (m ) Households. compensation. Property and Rights. reconstructing 200300 38 54.29% V V m2 High-Tech 300400 District of 21 30.00% V V m2 Bengbu city 400500 11 15.71% V V m2 Road 100 17 11.72% V V construction m2 in Economic 100200 Development 2 4 2.76% V V District m 200300 33 22.76% V V m2 300400 71 48.97% V V m2

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Willingness in Resettlement (household) Living No. of Exchange Self- Components Area Affected Proportion Remarks 2 Monetary of demolishing (m ) Households. compensation. Property and Rights. reconstructing 400500 16 11.03% V V m2 500 4 2.76% V V m2 Below 50 26.73% V V 100 m2 100200 71 37.97% V V m2 200300 39 20.86% V V Huaishang m2 District of 300400 Bengbu city 11 5.88% V V m2 400500 13 6.95% V V m2 Above 3 1.60% V V 500 m2 Guzhen Above 3 100.00% V V V County 150 m2 Total 405

6.4 Compensation and Resettlement of Non-residential

Houses

Demolition of non-residential houses only affect stores in Huanyuan County Subproject . The project will demolish 4 stores totaling 436.0 m², affecting 24 persons. The four stores to be demolished belong to the type of front-store and rear-residing. Since these stores will be demolished, the affected people may, at their will, choose the monetary compensation or exchange of property rights for compensation. Those choosing monetary compensation can buy houses to continue their business, while the tenants will have the priority in renting.

6.5 Rehabilitation Plan for Affected Vulnerable Groups

Among the impacted people, 7 households with 11 persons belong to vulnerable groups, accounting for 0.12% of the total population. This only occurs in Huaishang District Subproject . The living standards of the vulnerable groups affected by this project will be ensured not to be affected by the land acquisition. In addition, those with working capacity will be provided with job opportunities by the social insurance Ã61 5HVHWWOHPHQW$FWLRQ3ODQRI%,(,3)LQDQFHGE\WKH:RUOG%DQN departments at all levels to ensure that they can further improve their living standards. As for those solitary elderly and the family with the disabled, due to the inconvenience in daily life and comparatively weak self-care ability, they will be arranged to live on the ground floor of the new houses and be resettled properly according to their weakness. As for the poor group who has only one small-size residential house, they will be liable to get low-rent housing subsidies according to the low-rent housing policy of Bengbu city, i.e. those with less than 6 m² average per-capita living area shall be liable to get living subsidies of RMB 5 /m² for the insufficient part.

6.6 Rehabilitation Plan for Un-registered Houses

Demolition of the unregistered houses shall be compensated by the project. According to the survey, most of the unregistered houses are built aside the registered houses. Demolition of these unregistered housed will not bring about serious negative impacts on the APs. The demolition of the un-registered houses shall be compensated as per the cost price payable to the owners.

6.7 Affected Infrastructure and Ground Attachments

After compensating the affected infrastructure and land attachments, the reconstruction shall be conducted by the owners. The restoration measures for the demolished facilities shall be well planned ahead, and the implementation should be safe, effective, timely and accurate, and minimize the negative impacts on the people nearby. As for the affected public facilities, the demolition unit should strictly following the construction drawing and minimize removal. In addition, as for removal of the pipelines, the demolition unit should re-build first, under the conditions that such re-building and removal will not affect the living of the nearby local people (without re-locating residents).

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7 Institutional Organization and Implementation Schedule

7.1 Institutional Structure

Bengbu city has established BPMO that is responsible for guiding the development of RAP, implementation of land acquisition and contacting the World Bank. In addition, it will be also responsible for developing RAP, administration of land acquisition, supervision of internal inspection and internal monitoring etc. After the RAP is approved by the World Bank, all IAs will, guided by BPMO, select the qualified house demolition company to start the procedure of house demolition in urban areas. The acquisition of collective land and resettlement shall be implemented by the Land Resources Bureau. The institutional framework for resettlement is shown in Table 7-1.

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Table 7-1 Institutional Organization and Responsibilities of Regarding Resettlement Administrative Agency Resettlement Implementation Agency SL. Components City(District)/County Administrative Main Staffing Main Staffing Tel. Name Tel. Agency Responsibilities Inputs Responsibilities Inputs BPMO and Formulate Zhang defu, 0552-3114255 Bengbu Water Land Bengbu PMO of resettlement Chen Wei, Resources acquisition and Liu Bo 0552-3131325 City 0552-2041350 Xijiagou & Districts policy, Gu Youqi Bureau resettlement High-Tech District organize RAP, 0552-2051045 as per RAP 1 Bligou Investment Hu of Bengbu city ensure approved by Subproject Dept. of New Naijun, implementation WB 0552-4083486 High-Tech Zhang Lu of RAP, make District etc. timely payment and monitor Bengbu Wang fund use, Construction 0552-2044465 Hong etc. international Commission monitoring Investment Urban and High- Dept. of New Tech District of High-Tech Hu Urban Bengbu city District Naijun, 2 infrastructure 0552-4083486 Subproject Economic Longzihu Zhang Lu Development District etc. District

Economic Development Shi Hua 0552-3183588 District Longzihu Longzihu District Subproject Xiao 0552-3040199 Xuebao Huaishang District Huaishang Gao 3 Huaishang 0552-2829202 District of Bengbu city District Jianyu Subproject

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Administrative Agency Resettlement Implementation Agency SL. Components City(District)/County Administrative Main Staffing Main Staffing Tel. Name Tel. Agency Responsibilities Inputs Responsibilities Inputs Subproject Hebei Zhang Development 0552-2829615 Jun Co. Bengbu Water Resources Liu Bo 0552-3131325 Bureau Guzhen Dong Construction 0552-6012712 fang Bureau Guzhen Water PMO of Guzhen County Resources Liu Bing 0552-6015004 4 Guzhen County Guzhen Wang Sheng 13966065939 Subproject Bureau County Guzhen Environmental Song 0552-3555526 Protection Chao Bureau Wuhe County PMO of Wuhe Zhang 5 Wuhe County Yu Jixin 0552-5020408 Wuhe DRC 0552-2311293 Subproject County Dunbao Huaiyuan construction Lu Ming 0552-8213810 bureau Huaiyun water Huaiyuan County PMO of Hu Kegen 13956365695 6 Huaiyuan County He Ling 0552-8212651 resources Subproject Huaiyuan bureau Chengguan town of

Huaiyuan County

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7.2 Implementation Schedule

Based on the construction schedule, the project shall be completed in five years in phases from 2008 to 2012. The plan for land acquisition, demolition and resettlement shall be in consistence with the construction of every component of the Subproject s, which shall start from January 2008 and end in December 2012. The principles for arranging the resettlement progress are: (1) The land acquisition, demolition and resettlement shall be completed one month prior to the start of project construction, so that the APs would have adequate time in arranging production and preparing income restoration plan. (2) During resettlement, the APs should have the opportunities in participating in the project construction. Prior to construction commencement, the range of land acquisition must be announced, RIB must be distributed and public participation must be properly arranged. (3) All kinds of compensation must be paid to the property owners in full amount within three months after the date when the plan of compensation and resettlement are approved. No entities or individuals shall be allowed to utilize such compensation on behalf. No interception or misappropriation of such funds in any causes shall be allowed. The overall progress plan for land acquisition, demolition and resettlement of all Subproject s shall be developed based on the progress of land acquisition, demolition and resettlement. However, this schedule shall be adjusted accordingly if the overall progress deviates. The resettlement schedule and correlation with construction activities of all Subproject s are shown in Table 7-2, while the implementation schedule and activities are shown in Table 7-3.

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Table 7-2 Correlation Between Land Acquisition and Construction of All Subproject s Construction Period Implementation SL. Components City(District)/County Prelinimary Civil Works & Operation Schedule for Preparation (Design (Implementation & Resettlement & Tendering) Completion) 1 Tianhe Subproject Bengbu city 2007.22008.4 2008.4~2010.9 / Xijiagou & Bligou High-Tech District 2 2007.12009.2 2008.2~2011.4 2007.1~2011.12 Subproject of Bengbu city High-Tech District, Economic Urban infrastructure 3 Development 2007.12011.2 2009.2~2012.12 2007.1~2012.12 Subproject District of Bengbu Bengbu city City Longzihu Lake District and Economic 4 Longzihu Subproject 2007.12010.2 2010.2~2012.12 2009.2~2012.12 Development District of Bengbu city Huaishang District Huaishang District 5 2007.12009.2 2009.2~2011.4 2007.1~2011.12 Subproject of Bengbu city 6 Guzhen County Subproject Guzhen County 2007.12009.2 2009.2~2011.4 2007.1~2011.12 7 Wuhe County Subproject Wuhe County 2007.22008.7 2008.7~2010.11 2007.1~2011.12 8 Huaiyuan County Subproject Huaiyuan County 2007.12009.2 2009.2~2011.4 2007.1~2011.12

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Table 7-3 Schedule of Land Acquisition and Activities of All Subproject s Stag Activities Bengbu city Huaiyuan County Guzhen County Wuhe County e Determination of range Before 2007.7.15 Before 2007.2.15 Before 2007.2.15 Before 2007.2.15 of land acquisition In-kind survey of land 2007.2.152007.9.1 2007.2.152007.3.15 2007.2.152007.3.15 2007.2.152007.3.15 acquisition 5 Primary socio-economic 2007.2.152007.9.1 2007.2.152007.4.10 2007.2.152007.4.10 2007.2.152007.4.10 survey 0 Prep Negotiation of 2007.4.202007.9.2 arati 2007.4.202007.6.20 2007.4.202007.6.20 2007.4.202007.6.20 resettlement plan 0 on Compilation of 2007.3.152007.9.3 2007.3.152007.6.30 2007.3.152007.6.30 2007.3.152007.6.30 Resettlement Plan 0 Public release of 2007.9.30 2007.9.15 2007.9.15 2007.9.15 Resettlement Plan Approval of 2007.10 2007.10 2007.10 2007.10 resettlement plan Impl Approval formalities for eme acquisition of rural 2008.4-20108 2008.4. 2008.4. 2008.4. ntati collective land on Organizing land acquisition mobilization meeting, 2008.4 2008.4. 2008.4 2008.4. announcement of policy

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Issuance of notice of 2008.5-201010 2008.5 2008.5 2008.5 land acquisition Negotiation of compensation 2008.5-2012.12 2008.5 2008.5 2008.5 agreement Demolition of house 2008.5 2008.5 2008.5 2008.5 and facilities Hand-over of 2008. 6 2008.6 2008. 6 2008.6 construction land Construction of 2007.12-2008.5 2007-12-2008.5 2007.12-2008.5 2007.12-2008.5 relocation houses Moving-in new houses 2008.5-10 2008.5-10 2008.5-10 2008.5-10 by APs Income recovery of 2008.5-2012.12 2008.5-2011.12 2008.5-2011.12 2008.5-2011.12 APs Moni torin g & Monitoring & 2008.6-2012.12 2008.6-2012.12 2008.6-2012.12 2008.6-2012.12 Asse Assessment ssme nt

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8 Budget and Funds Sources

8.1 Budget

The general budge shall include: compensation for permanent land acquisition; compensation for temporary land occupation; compensation for demolition of urban residential houses; compensation for demolition of rural residential houses; compensation for affected enterprise; compensation for affected institutional units; compensation demolition of stores; compensation for affected infrastructure and land attachments; relevant taxes etc. The total budget for resettlement of the project is RMB 237 million, accounting for 15.4 % of the project costs, comprising of: (i) compensation for permanent acquisition of collective land RMB66.905 million (accounting for 28.3%); (ii) compensation for temporary land occupation RMB 6.671 million (accounting for 2.82%); (iii) compensation for demolition of rural residential houses RMB 40.69 million (accounting for 17.19%); (iv) compensation for demolition of urban residential houses RMB 7.433 million (accounting for 3.14%); (v) compensation demolition of stores RMB 0.159 million (accounting for 0.07%); (vi) compensation for land attachments RMB 3.819 million, accounting for 1.61%; (vii) compensation for unregistered buildings RMB 0.381 million (accounting for 0.16%); (viii) various taxes RMB 79.669 million (accounting for 33.7%); (x) resettlement contingency RMB 21.519 million (accounting for 9.09%). In terms of different Subprojects, the resettlement costs are: (i) Xijiagou Subproject , RMB 36.264 million (accounting for 15.32%); (ii) Urban infrastructure Subproject , RMB 104.789 million (accounting for 44.27%); (iii) Longzihu Subproject , RMB 6.624 million (accounting for 2.8%); (iv) Huaishang District Subproject , RMB 32.032 million (accounting for 13.53%); (v) Guzhen County Subproject , RMB 10.995 million (accounting for 4.64%); (vi) Wuhe County Subproject , RMB 5.523 million (accounting for 2.33%); (vii) Huaiyuan County Subproject , RMB 40.484 million (accounting for 17.1%). All the resettlement costs will be covered by the construction costs of the project. The budgets are shown in Table 8-1.

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Table 8-1 Budget for Compensation and Resettlement of the Project Unit: RMB 10,000

Bengbu City Guzhen Wuhe Huaiyuan Xijiagou & Urban Huaishang Proportion SL. Category Tianhe Longzihu County County County Total Bligou infrastructure District (%) Subproject Subproject Subproject Subproject Subproject Subproject Subproject Subproject

1 Permanent occupation of land 0 1292.1 2776.8 0.0 467.2 317.0 230.5 1607.0 6690.5 28.26%

1.1 Collective cultivate land 0 1240.8 2506.8 0.0 399.0 311.4 230.5 1607.0 6295.5 26.60%

1.2 Collective house sites 0 51.3 269.9 0.0 68.2 5.6 0.0 0.0 395.0 1.67%

Paid assignment of state-owned 1.3 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00% land

2 Temporary Land Occupation. 0 0.0 32.9 560.2 18.2 55.9 0.0 0.0 667.1 2.82%

3 Rural residential houses 0 91.4 2578.9 0.0 1387.8 11.8 0.0 0.0 4069.9 17.19%

4 Urban residential houses 0 0.0 160.5 0.0 0.0 235.5 0.0 347.3 743.3 3.14%

5 Demolition of enterprise 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00%

6 Demolition of stores 0 0.0 0.0 0.0 0.0 0.0 0.0 15.9 15.9 0.07%

7 Unregistered Houses 0 2.5 35.6 0.0 0.0 0.0 0.0 0.0 38.1 0.16%

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Bengbu City Guzhen Wuhe Huaiyuan Xijiagou & Urban Huaishang Proportion SL. Category Tianhe Longzihu County County County Total Bligou infrastructure District (%) Subproject Subproject Subproject Subproject Subproject Subproject Subproject Subproject

8 Land attachments 0 27.8 0.9 0.0 304.1 21.3 0.0 27.8 381.9 1.61%

Total of 1-8 0 1413.8 5585.6 560.2 2177.3 641.5 230.5 1998.0 12606.7 53.26%

9 Prospecting & design charges (2%) 0 28.3 111.7 11.2 43.5 12.8 4.6 40.0 252.1 1.07%

10 Administrative charges (3%) 0 42.4 167.6 16.8 65.3 19.2 6.9 59.9 378.2 1.60%

Monitoring & evaluation charges 11 0 28.3 111.7 11.2 43.5 12.8 4.6 40.0 252.1 1.07% (2%)

12 Training charges (0.5%) 0 7.1 27.9 2.8 10.9 3.2 1.2 10.0 63.0 0.27%

13 Land acquisition taxes and fees 0 1776.9 3521.8 0.0 571.4 310.0 254.3 1532.5 7966.9 33.66%

Total of 1-13 0 3296.7 9526.3 602.2 2912.0 999.6 502.1 3680.4 21519.1 90.91% 14 Contingency 0 329.7 952.6 60.2 291.2 100.0 50.2 368.0 2151.9 9.09% Total costs 0 3626.4 10478.9 662.4 3203.2 1099.5 552.3 4048.4 23671.0 100.00% Proportion 15.32% 44.27% 2.80% 13.53% 4.64% 2.33% 17.10% 100.00%

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8.2 Annual Investment Plan

According to the land acquisition and demolition progress of all Subproject s, the annual fund utilization plan is shown in Table 8-2.

Table 8-2 Annual Funds Utilization Plan Unit: RMB10000 Components 2008 2009 2010 2011 2012 Grand Total Xijiagou & Bligou 2901.1 544.0 181.3 3626.4 Subproject Urban infrastructure 4191.6 2095.8 2095.8 1047.9 1047.9 10478.9 Bengbu Subproject City Longzihu Subproject - 165.6 496.8 662.4 desilting Huaishang District 2562.6 480.4 160.2 3203.2 Subproject Guzhen County 879.6 164.9 55.0 1099.5 Subproject Wuhe County 441.8 82.9 27.6 552.3 Subproject Huaiyuan County 3238.7 607.3 202.4 4048.4 Subproject Total 14215.4 3975.3 2887.9 1544.7 1047.9 23671.1

8.3 Funds Sources and Payment

According to the construction progress of the project, the funds for the resettlement of all Subproject s are from the local financial allocation and domestic bank loans. During implementation of this project, resettlement funds will be made according to the policy and standards as specified in this RAP. The BPMO and IAs will pay all compensation funds to the demolition units or the local city or County land resources bureaus who will pay them to the affected units or individuals.

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Table 8-3 Summary of Sources of Funds for Resettlement Unit: RMB10000 % of Total Total Incl. WB Resettlement Components Resettlement Funds Source investment Loan (USD) Costs in Total Costs Investment Tianhe 5839.48 2483.77 0 0.00%   Subproject Xijiagou & Bligou 9384.74 2926.76 3626.4 38.64% Municipal financial allocation Subproject Urban Bengbu Municipal financial allocation, infrastructure 42719.27 16329.78 10478.9 24.53% City domestic bank loan Subproject Longzihu  District financial allocation, 13681.73 6970.32 662.4 4.84% Subproject domestic bank loan Huaishang District financial allocation, District 27985.88 12955.01 3203.2 11.45% domestic bank loan Subproject Guzhen County Subproject 8837.95 3895.18 1099.5 12.44% County financial allocation County financial allocation, Wuhe County Subproject 27249.5 13853.9 552.3 2.03% domestic bank loan County financial allocation, Huaiyuan County Subproject 13176.57 4573.28 4048.4 30.72% domestic bank loan Technical assistance 4647.9 4012 0 0.00%   Total 153523.02 68000 23671.1 15.42%  

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9 Public Participation, Consultation & Channels for Complains and Grievance

9.1 Public Participation

In accordance with the laws, regulations and policies respectively of the state, Anhui Province, Bengbu city and the affected regions and counties, in order to safeguard the legal entitlements of the affected units and affected persons and minimize any complaints and disputes, it is required to further develop the relevant policies and implementation provisions for resettlement according to the characteristics of all the Subproject s, prepare the resettlement plan and practically attend to the implementation, thus to achieve the target of resettlement. In this project, public participation, discussion and extensive soliciting of the APs opinions are greatly stressed during the process of formulation of resettlement policies, preparation of plan and implementation etc. The plan for public participation is shown in Table 9-1. During the compilation of the RAP, land acquisition and demolition administrative departments, the IAs and design institutes of all Subproject s should publicize resettlement policies of this Project to the affected persons through multiple channels and in various means. Details are shown in Table 9-2. At the same time, they have solicited extensively the comments from the public and discussion with the APs.

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Table 9-1 Process of Public Participation Activities and Schedule

City(District)/Count Means of Socio- Compensatio Discussion Main SL. Components Participants y Participation In-kind economic & n & on Conclusion Survey Willingness Resettlement Resettlement Survey Policies Plan Tianhe Interview, In-king 1 Bengbu city / / / / / Subproject discussion survey: the meeting and data is Bengbu Water Resources questionnaires authentic and Xijiagou & Bureau, Administrative High-Tech District 2007.2.26 2007.3.203 2007.5200 accurate, 2 Bligou Committee of the High- 2007.3.13.6 of Bengbu city 3.15 .21 7.7 recognized by Subproject Tech District, the APs and both parties. design unit. Compensati Bengbu Construction on and Urban Commission, Administrative resettlement infrastructu High-Tech District 2007.2.26 2007.3.209 2007.5200 3 Committee of the High- 2007.3.19.20 policies: as re of Bengbu city 9.15 .21 7.9 Tech District, the APs and per State and Bengbu Subproject design unit. local policies; City Resettleme Longzihu Lake Administration Committee nt plan: District and of Bengbu Economic feasible and Longzihu Economic 2007.2.26 2007.3.209 2007.5200 4 Development District, 2007.3.19.6 satisfied by Subproject Development 9.15 .21 7.9 affected units and persons, the APs; District of Bengbu DI. Support to city the project Bengbu Water Resource construction. Huaishang Bureau, Huaishang District Huaishang District 2007.2.26 2007.3.203 2007.5200 5 District Government, Hebei 2007.3.13.6 of Bengbu city 3.15 .21 7.7 Subproject Development Company, APs and design unit.

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The PMO, Construction Commission, Water Guzhen County Resource Bureau and 2007.2.26 2007.3.203 2007.5200 6 Guzhen County 2007.3.13.6 Subproject Environmental Protection 3.15 .21 7.7 Bureau of Guzhen County, the APs and design unit. Wuhe County The PMO of Wuhe County, 2007.2.26 2007.3.203 2007.5200 7 Wuhe County 2007.3.13.6 Subproject the APs and design unit. 3.15 .21 7.7 The PMO, Construction Commission, Water Resource Bureau of Huaiyuan County 2007.2.26 2007.3.203 2007.5200 8 Huaiyuan County Huaiyuan County, 2007.3.13.6 Subproject 3.15 .21 7.7 Chengguan Township Government, the APs and design unit.

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Table 9-2 Process of Publicity of Policies Bengbu City Guzhen Huaiyuan Xijiagou & Urban Huaishang Wuhe County Tianhe Longzihu County County Bligou infrastructure District Subproject Subproject Subproject Subproject Subproject Subproject Subproject Subproject Ways of High-Tech Longzihu Lake Place of Documents Publicity and District, District and High-Tech Huaishang publicity Language Economic Economic Guzhen Huaiyuan Bengbu city District of District of Wuhe County Development Development County County Bengbu city Bengbu city District of District of Bengbu city Bengbu city Schedule of Publicity In Chinese, through Project March Broadcasting March 2007 March 2007 Feb. 2007 Feb. 2007 March 2007 March 2007 March 2007 introduction 2007 & TV, newspapers In Chinese, Introductory through information Broadcasting August August about land / August 2007 August 2007 Feb. 2007 August 2007 August 2007 & TV 2007 2007 acquisition and stations and demolition website. In Chinese, Land acquisition through and house Broadcasting / Sep. 2007 Sep. 2007 Feb. 2007 Sep. 2007 Sep. 2007 Sep. 2007 Sep. 2007 demolition & TV policies stations and website. In Chinese, Township through In October 2007 and after the approval of the and RAP / In October 2007 and after the approval of the World Bank library and World Bank villagers’ newspapers. committee

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In Chinese, Villagers’ delivered to RAP Booklet / October 2007 & WB’s review In October 2007 and after the approval of the World Bank committee the hands of and APs. the APs.

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9.2 Channels for Complaints Grievances

Since the resettlement activities are conducted with the participation of APs, there will not cause any great disputes during implementation. However, in order to provide with effective channels for complaints and grievance, the BIEIP has established the grievance redress mechanism during the compiling and implementing of Resettlement Plan. The complaining includes four stages: ¾Stage 1: If the APs are unsatisfied with resettlement plan, they can complain orally or in written form to villagers’ committee or project demolition implementing agency. In the evident of oral complaint, the villagers; committee or project demolition implementing agency should handle the complaint and keep written records. The committee and implementing agency should solve the problems within 2 weeks; ¾Stage 2: If the persons who lodge the complaints are still unsatisfied with the resolution, they can lodge complaint to the municipal or County PMO /administrative institutions, who should make resolution within two weeks. ¾Stage 3: If the persons who lodge the complaints are still not satisfied with the decision in Stage 2, they may, after receiving the decision, lodge complaints to the administrative organs for arbitration level by level according to $GPLQLVWUDWLYH3URFHGXUH/DZRIWKH3HRSOH V 5HSXEOLFRI&KLQD ¾Stage 4: If the persons are still dissatisfied with the above decision, they may, after receiving the arbitration decision, appeal to the People’s Court in accordance with&LYLO3URFHGXUH/DZRIWKH3HRSOH¶V 5HSXEOLFRI&KLQD In this regard, the APs may lodge any complaints regarding the resettlement, including the compensation standards. These aforesaid complaining channels will be publicized to the APs through meetings and other means enabling all APs to know their rights of grievance. At the same time, through medias and enhancement of propaganda, the opinions and suggestions on the resettlement will be collected and forwarded to the resettlement administrative organs at all levels for prompt treatment. Relevant organs shall accept the complaints and grievance lodged by APs free of charge. The reasonable charges as incurred shall be covered by the resettlement contingency of the project.

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10 Schedule of Monitoring & Evaluation

In order to ensure Resettlement Plan to be carried out smoothly and to achieve the target of resettlement, this Project, in accordance with the 2SHUDWLRQDO3ROLFLHVIRU,QYROXQWDU\5HVHWWOHPHQW 23 RIWKH:RUOG%DQN and *XLGHOLQHVIRU3URFHVVLQJWKH5HVHWWOHPHQW&RPSRQHQWLQ:RUOG%DQN 3URMHFWVRI&KLQD will undertake regular monitoring and assessment of the activities of land acquisition and resettlement of the project. The monitoring includes internal monitoring by the resettlement management institution and external independent monitoring. The monitoring and assessment will be started from June 2008 and ended in December 2011, for which, the semi-annual reports of internal and external monitoring shall be submitted to the World Bank according to the progress of construction and resettlement of all Subproject s.

10.1 Internal Monitoring

The PMO of all Subproject s shall establish an internal monitoring mechanism to monitor the resettlement activities. The PMOs shall establish the basic data base for resettlement that is used to prepare the resettlement plan, monitor the APs and undertake internal monitoring throughout the entire process of land acquisition, demolition and resettlement.

10.1.1 Implementation Procedures During the implementation, the IAs (to be further defined by the PMO through bidding) shall promptly report the activities and the implementation progress to PMO for the purpose of keeping the continuity of the monitoring activities. These information shall be based on the available samples and information that are collected and recorded. The PMO shall undertake regular inspection on the implementation.

10.1.2 Monitoring Contents 1. Compensation funds paid to affected people and units; 2. Availability of monetize resettling houses; 3. Construction of resettling houses as exchange of property rights; 4. Staffing, training, schedule and working efficiency of the resettlement institutions; and 5. Accepting and handling of grievance and complaints.

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10.1.3 Internal Monitoring Report The IAs shall submit semi-annual internal monitoring report to the PMO. The PMO shall consolidate the annual reports, and submit it to the Steering Group of BIEIP and the World Bank.

10.2 External Independent Monitoring

10.2.1 Independent Monitoring Institution

Before land acquisition, the BPMO and the PMOs of all Subproject s shall entrust a third independent agency that has at least five years of monitoring and evaluation experiences on World Bank financed project to conduct the monitoring and evaluation of the land acquisition and resettlement activities of the Project.

10.2.2 Procedure and Contents of Monitoring (1) Prepare terms of reference for monitoring and evaluation; (2) Develop the resettlement monitoring evaluation information system software. (3) Prepare the investigation outline, investigation tabulated format and the recording card for affected people, typical enterprise and institution; (4) Sample scope for random survey work design: 10% of households with house demolished; 20% of enterprises and institutions with house demolished. (5) Baseline investigation This is to conduct baseline investigation for the households with land acquisition to meet the requirements of the independent monitoring and evaluation. This process will get the baseline information of the living standards (living, production and income) of the displaced people. (5) Establish monitoring evaluation information system. Establishment of the monitoring and evaluation system will involve the establishment of the classified database for all the information thereof, and thus provide with the computer aid in analysis and monitoring. (2) Monitoring and evaluation investigation. 1. Capacity evaluation of the resettlement implementation agency: Investigate its working capacity and working efficiency. 2. Monitoring of resettlement progress, compensation standards, payment to typical dislocated people: Monitor the payment of cash payment of compensation, situation of income recovery, quality of resettlement, resettlement measures for vulnerable groups.

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3. Public participation and consultation: Investigate the activities of preparation of RAP and implementation with the public participation, monitor the results of public participation. 4. Grievance and complaints: Monitoring the record and treatment of the grievance and complaints lodged by affected people. (8) Filing monitoring information and establish data base. (9) Comparative analysis. (10) Compile the monitoring and evaluation report according to the monitoring plan.

10.2.3 Monitoring Indicators 1. Socio-economic indicators: average per-capita income, GDP, employment rate; 2. Institutional indicators: staffing structure, staff quality, regulations and rules, equipment, rate of concluded affairs; 3. Infrastructure: in-place of compensation funds, rate of function restoration.

10.2.4 Post Assessment Upon completion of the project, on the basis of the monitoring evaluation, the theory and method of post assessment shall be used to review the resettlement activities of the project. In this regard, such post assessment will cover the successful experiences and lessons in the aspects of land acquisition and house demolition that can be referred to by the future resettlement projects. The post assessment shall be conducted by the external independent agency that is entrusted by the PMOs of all Subproject s. The agency entrusted to conduct the post assessment for the project must prepare the TOR for post assessment, build up the assessment index system, and undertake necessary social and economic analysis and survey. According, it should prepare Resettlement Post Assessment Report for all Subproject s and submit them to the steering group of BIEIP and the World Bank. Schedule of monitoring and evaluation report is shown in table 10-1.

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Table 10-1 Schedule of Monitoring, Evaluation and Reporting Internal Monitoring External Monitoring Post- SL. Components City(District)/County Monitoring Time Reporting Time review Report Reports Bengbu Tianhe 1 Bengbu city / / / / / City Subproject Totally 6 Xijiagou & High-Tech District of June 2008 – Semiannual June 2008 – volumes, 2 Bligou 1 Volume Bengbu city December 2010 report December 2010 semiannual Subproject reports High-Tech District, Longzihu District, Totally 6 Urban Economic June 2008 – Semiannual June 2008 – volumes, 3 infrastructure 1 Volume Development December 2012 report December 2012 semiannual Subproject District of Bengbu reports city Longzihu Lake District and Totally 6 Longzihu Economic June 2008 – Semiannual June 2008 – volumes, 4 1 Volume Subproject Development December 2012 report December 2012 semiannual District of Bengbu reports city

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Totally 6 Huaishang Huaishang District June 2008 – Semiannual June 2008 – volumes, 5 District 1 Volume of Bengbu city December 2010 report December 2010 semiannual Subproject reports Totally 6 Guzhen County June 2008 – Semiannual June 2008 – volumes, 6 Guzhen County 1 Volume Subproject December 2010 report December 2010 semiannual reports Totally 6 June 2008 – Semiannual June 2008 – volumes, 7 Wuhe County Subproject Wuhe County 1 Volume December 2010 report December 2010 semiannual reports Totally 6 Huaiyuan County June 2008 – Semiannual June 2008 – volumes, 8 Huaiyuan County 1 Volume Subproject December 2010 report December 2010 semiannual reports

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11 Entitlement Matrix

City / County Types of Degree of Compensation & (District) / Beneficiaries Compensation Standards Impacts Impacts Resettlement Policies Components 458.6 mu of Compensation includes AAOV of cultivated land: RMB rural collective compensation for land, 1200/mu Permanent 299 Xijiagou & land, including resettlement subsidies and LA Bengbu households Land compensation 8 times, Baligou 440 mu of attachments and young Land city with 1075 RMB 9600/mu Subproject cultivated land crops on the requisitioned persons and 18.6 mu land. The compensation Resettlement subsidies 15 of house sites. multiples as per certain times, RMB 18000/mu Collective land times of the AAOV; Crops compensation 0.5 times, 986.4 mu, The villagers’ committee RMB 600/mu including gets 35% of land 872.1 of compensation. cultivated Urban 1056 65% of land compensation land, 97.8 mu plus 100% of resettlement Subproject of house sites households (south of with 3468 subsidies are paid to the and 16.5 mu displaced people; Huai river) of fish ponds, persons affecting 3 Provision of social insurance towns with 10 for displaced farmers on villages. willingness basis; Provision of opportunities for training and priority of

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City / County Types of Degree of Compensation & (District) / Beneficiaries Compensation Standards Impacts Impacts Resettlement Policies Components Collective land training and priority of 166.2 mu, employment. including 141.5 mu of 223 Huaishang cultivated land households District and 24.7 of with 852 Subproject house sites, affecting 2 persons towns with 3 villages.

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City / County Types of Degree of Compensation & (District) / Beneficiaries Compensation Standards Impacts Impacts Resettlement Policies Components Compensation includes compensation for land, resettlement subsidies and attachments and young crops on the requisitioned Rural land. The compensation AAOV of cultivated land: RMB collective land multiples as per certain 1161/mu 165.4 mu, times of the AAOV; including 7 mu Land compensation 6 times, paddy land, The villagers’ committee RMB 6966/mu 259 155.4 mu dry gets 40% of land Resettlement subsidies 10 households Guzhen County land and 3 mu compensation. times, RMB 11610/mu with 1376 house site, 60% of land compensation persons Crops compensation, RMB involving 1 plus 100% of resettlement 600/mu town and 7 subsidies are paid to the villages and 1 displaced people; Compensation for non- villagers’ cultivated land refer to that for Provision of social insurance cultivated land. committee. for displaced farmers on willingness basis; Provision of opportunities for training and priority of employment.

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City / County Types of Degree of Compensation & (District) / Beneficiaries Compensation Standards Impacts Impacts Resettlement Policies Components Compensation includes compensation for land, resettlement subsidies and attachments and young crops on the requisitioned land. The compensation multiples as per certain times of the AAOV; AAOV of cultivated land: RMB The villagers’ committee Rural 1000/mu gets 40% of land collective land 101 compensation. Land compensation 6 times, 139.7 mu households RMB 6000/mu Wuhe County (paddy field), 60% of land compensation with 420 involving 1 plus 100% of resettlement Resettlement subsidies 10 persons town and 2 subsidies are paid to the times, RMB 10000/mu villages. displaced people; Crops compensation 0.5 times, Provision of social insurance RMB 500/mu for displaced farmers on willingness basis; Provision of opportunities for training and priority of employment. Resettlement with reserved land.

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City / County Types of Degree of Compensation & (District) / Beneficiaries Compensation Standards Impacts Impacts Resettlement Policies Components Compensation includes compensation for land, resettlement subsidies and attachments and young crops on the requisitioned land. The compensation multiples as per certain times of the AAOV; AAOV of cultivated land: RMB Rural 1200/mu collective land The villagers’ committee 484 Land compensation 10 times, 811.6 mu gets 10% of the land households RMB 12000/mu Huaiyuan County (paddy field), compensation and with 1936 involving 1 resettlement subsidies; Resettlement subsidies 6 persons town and 2 The displaced farmers get times, RMB 7200/mu villages. 90% of the land Crops compensation 0.5 times, compensation and subsidies; RMB 600/mu Provision of social insurance for displaced farmers on willingness basis; Provision of opportunities for training and priority of employment.

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City / County Types of Degree of Compensation & (District) / Beneficiaries Compensation Standards Impacts Impacts Resettlement Policies Components

Urban 149.4 mu of Villagers’ The compensation for Subproject temporary committee temporary occupation of (south of land rural collective land shall be Huai river) occupation. Land user made season-for-season 2305.8 mu according to the duration Villagers’ and losses incurred, Longzihu temporary committee Cultivated land : RMB 600 Subproject land including crops /mu; occupation Land user compensation and land Bengbu restoration expenses. The Restoration Charges: RMB city duration of occupation shall 1000 /mu Temporary be maximally two years. Land Fertility Loss 82.5 mu of Compensation: RMB 600 /mu Land Huaishang Villagers’ After occupation, who will temporary Occupation. District committee recover the occupied land land Subproject Land user shall be determined jointly occupation. by the representatives of the APs, village collective organization and the IAs.

Temporary Cultivated land: RMB 600 /mu occupation of Villagers’ Restoration Charges: RMB Guzhen County collectively- committee As above 2000 /mu owned land Land user Land Fertility Loss 139.8 mu. Compensation: RMB 1400 /mu

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City / County Types of Degree of Compensation & (District) / Beneficiaries Compensation Standards Impacts Impacts Resettlement Policies Components 10 House demolition Rural Xijiagou & Demolition of households compensation made at residential Baligou rural houses with 48 replacement cost; house Subproject 2482.6.2 people compensation for ground demolition affected. attachments as per actual 205 charges. Urban Demolition of households Compensation for Houses Subproject rural houses with 929 (south of The dislocated people shall Brick concrete structure: RMB 62006.78.2 people 2 Huai river) have the rights to choose 400 /m . affected. the form of compensation as Brick timbre structure: RMB 2; Bengbu the two options: monetary 350 /m compensation, exchange of city Other Compensations property rights. Moving Subsidies: RMB 1500 /

187 household The dislocated people shall Huaishang Demolition of households Reward for advance removal: not pay any taxes, charges District rural houses with 714 RMB 1500 - 3000 /household; for certificates of houses Subproject 33437.2 people and land and legal cost. affected.

They shall be offered moving subsides and in- advance moving award.

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City / County Types of Degree of Compensation & (District) / Beneficiaries Compensation Standards Impacts Impacts Resettlement Policies Components House demolition compensation made at replacement cost; compensation for ground attachments as per actual charges. Compensation for Houses Brick concrete structure: RMB The dislocated people shall 2 have the rights to choose 400 /m . the form of compensation as Brick timbre structure: RMB Demolition of 3 households the follows: monetary 280 /m2; Guzhen County rural houses with 19 compensation, exchange of Other Compensations 300.7.2 persons property rights and self demolition and construction. Moving Subsidies: RMB 1000 / household The dislocated people shall not pay any taxes, charges Reward for advance removal: for certificates of houses RMB 1500 /household; and land and legal cost. They shall be offered moving subsides and in- advance moving award.

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City / County Types of Degree of Compensation & (District) / Beneficiaries Compensation Standards Impacts Impacts Resettlement Policies Components Compensation at replacement price evaluated by qualified appraisal organization shall be paid by Compensation for Houses compensation for land attachments at actual cost. Brick concrete structure: RMB 2000 /m2. The dislocated people shall have the rights to choose Brick timbre structure: RMB 2; Demolition of the form of compensation as 1800 /m Demolition 28 Urban the follows: monetary Other Compensations of urban High-Tech District households Residential compensation, exchange of dwelling of Bengbu city with 90 Moving Subsidies: RMB 10 / House property rights. houses persons m² 824.6.0 The dislocated people shall Temporary transition not pay any taxes, charges subsidies: 0.5% of house for certificates of houses compensation. and land and legal cost. Reward for advance removal: They shall be offered RMB 3000 - 5000 /household; moving subsidies, in- advance moving award and subsidies for temporary resettlement.

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City / County Types of Degree of Compensation & (District) / Beneficiaries Compensation Standards Impacts Impacts Resettlement Policies Components Compensation for Houses Brick concrete structure: RMB 900 /m2. Brick timbre structure: RMB 2; Demolition of 900 /m 28 Urban Other Compensations households Guzhen County Residential As above with 101 Moving Subsidies: RMB 10 / House persons m² 2422.6.0 Temporary transition subsidies: 0.5% of house compensation. Reward for advance removal: RMB 3000 - 5000 /household; Demolition of 21 Urban households Huaiyuan County Residential As above with 76 House persons 1686.0

Compensation for Houses Demolition Huaiyuan County 4 stores 24 persons As above of stores Brick concrete structure: RMB demolished, 2000 /m2. covering

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City / County Types of Degree of Compensation & (District) / Beneficiaries Compensation Standards Impacts Impacts Resettlement Policies Components 436.0 Brick timbre structure: RMB 1900 /m2; Other Compensations Moving Subsidies: RMB 10 / m² Business suspension subsidies: 0.6% of house compensation. Urban and stores Brick concrete structure: RMB Demolition 500 /m2. 2083.5, including rural Brick timbre structure: RMB 2; Unregistered Bengbu High-Tech un-registered Compensated as per 350 /m houses city District 1653.6 m² replacement cost. Rural Area and urban un- Brick concrete structure: RMB registered 100 /m2. 430m². Brick timbre structure: RMB 80 /m2;

7 households The labors in the vulnerable Vulnerable Bengbu Huaishang with 11 families shall be provided Groups city District persons with occupational training, various information and

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City / County Types of Degree of Compensation & (District) / Beneficiaries Compensation Standards Impacts Impacts Resettlement Policies Components guidance for employment so that they can have more opportunities in getting jobs; During the project construction, the children in the vulnerable families shall enjoy the priority in getting the jobs that do not require high skills; and the especially-poor displaced people can get the low-rent housing provided by the government. Ground Property Compensation to the Refer to Table 5-9, Table 5-10. attachments holders property owners by IA. Compensation APs standard, unsatisfied The dislocated people shall compensation with land be exempt from any charges payment, Grievance acquisition and administration fees demolition and involving grievance against and demolition resettlement. resettlement compensation measures.

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Appendix 1: Information Note on Resettlement Non- involvement of Tianhe Subproject

I. Profile Tianhe Subproject mainly includes the construction of Tianhe pumping station, with design capacity of 55m³/s and total installed capacity of 4000KW. The total investment of the Project shall be RMB 67.753 million, including World Bank loans of USD 3.7065 million. The whole project is expected to complete in September 2010. Bengbu Water Resource Bureau is the IA of this Subproject . II. Land use of the Project The survey on land use of the Subproject started in December 2006. Bengbu Water Resource Bureau organized Agriculture Commission of Yuhui District, Bengbu Land and Resources Adminstration Bureau, Bengbu Demolition Office, Bengbu Planning Department to make site identification of land use for Tianhe Pumping Station and land use for borrow pits in accordance with the drawings provided by the Design Institute. The identification proves that the pumping station is innovated on the basis of the existing station without any land acquisition and demolition involved. However, the pumping station is still in feasibility study stage, the site has not been finally decided. It is estimated that it will have about 1 mu of temporary land occupation. For this reason, in case of any land acquisition, the compensation and resettlement shall follow the policy framework set out in the RAP of BIEIP. This pumping station belongs to Grade II project. The main buildings include pump room, pressure water tank, self-releasing culvert etc. The supportive buildings include wing wall, inlet front pond etc. In addition, there are some temporary buildings such as temporary shelters etc.

Table 1-1 Balance of Land Use for Pumping Station Reasons for no land Occupied Nature of Components Scale acquisition and house Land (mu) Land Use demolition Deign capacity: Construction 55m³/s; total Improvement of the of Tianhe State- installed 20.33 existing Tianhe Pumping owned land capacity: 4000 Pumping Station Station KW

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III. Conclusions

In feasibility study stage, Resettlement Plan compiling group has made site survey in accordance with the design drawings provided by the Design Institute. The results prove that no land acquisition and house demolition are involved in the construction of Tianhe Pumping Station. However, in construction stage, land occupation would probably expanded, or the adjustment of design scheme would result in land acquisition. For this reason, the resettlement framework has been worked out. In case of any land acquisition, the compensation and resettlement shall follow the policy framework set out in the RAP of BIEIP.

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Appendix 2: Summary of Project Construction Components and Major Resettlement Impacts

Project Impacts SL. Project Components Construction Contents IAs Affected Remarks Lands Houses People Construct one pumping Bengbu No Bengbu Tianhe station, with design capacity Water 1 N/A N/A N/A resettlement, City Subproject of 55m³/s and total installed Resources Appendix 1 capacity of 4000kW. Bureau Demolish Xijiagou West riverbank 2727.85 (Donghai Ave. – Yanshan 309 rural Rd.); Xijiagou east riverbank Xijiagou & households 458.6mu of houses, (Xingzhong Rd. – Yanshan High-Tech 2 Bligou with 1123 collective with Rd.); Xijiagou High-Tech District Subproject people land 245.3 of District (Yanshan Rd. – affected. un- Nanhuan Rd.); Baligou registered (Tushan Rd. – Qinji Rd.). area

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Project Impacts SL. Project Components Construction Contents IAs Affected Remarks Lands Houses People Demolish 1254.55 Upgrade 3 flood control 28 of urban stations and 1 waste water Bengbu households houses, pumping station; construct Construction with 90 N/A including 9873m of storm water and Commission persons 429.95m² sewage pipelines affected of un- registered area. 478 Rural Construct 19.3 km of storm households Permanent house Urban High-Tech water pipeline and 19.6 km of with 1877 acquisition area 3 infrastructure District Subproject sewerage pipelines persons of 669.6mu 11906.78 affected m². New construction 13.6 km of storm water pipeline, 12.3 km Longzihu N/A N/A N/A of sewage pipeline and 1740 District m of road. 723 New construction 38.2 km of Rural Economic households Permanent storm water pipeline, 33.8 km house Development with 2520 LA 298.2 of sewage pipeline and 20.5 area District persons mu km of road. 50100 m². affected

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Project Impacts SL. Project Components Construction Contents IAs Affected Remarks Lands Houses People Bengbu Longzihu Water-logging Water N/A N/A N/A Pumping Station, Resources Longzihu Bureau 4 Subproject Bank slope treatment, south 2305.8 mu Economic Longzihu lake dredging and temporary Development N/A N/A ecological upgrading of nearby land District mountains. occupation 5 Huaishang Huaishang District District

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Project Impacts SL. Project Components Construction Contents IAs Affected Remarks Lands Houses People District (i) Design capacity of Xiao District 410 206.4 mu of Demolition Subproject Bengbu pumping station is households state- of 33437 22.9m³/s, attached with low- with 1566 owned land rural draining culvert; design people assignment; houses capacity of (ii) Wangxiaogou affected. 166.2 mu pumping station is 20m³/s, collective with low-draining culvert; (iii) land Urban flood control channels acquisition; and treatment of neighboring 67.5 mu area on north bank of Huaihe temporary

river: concrete flood control occupation access road, 20-30m in width of state- and 11909m in length; owned construction of 3 bridges; land; 82.5 provision of flood mu of management facilities along temporary the north dyke, including occupation communication devices; 15 of collective km of pipeline; 9.1 km of land. dredged gully.

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Project Impacts SL. Project Components Construction Contents IAs Affected Remarks Lands Houses People 28 Temporary Demolition Guzhen households occupation of Construct 9000 m of storm Construction with 101 of state- 2422.57 and sewerage pipelines Bureau people owned land town affected. 61 mu houses 165.38 mu of permanent acquisition 3.4 km dyke construction; Guzhen County of collective 6 14.86 km of dredging; 9.5 km Subproject 262 land; 98.5 of flood control access; 3 new Guzhen Rural households mu of culverts; new construction or Water house with 1395 state- improvement of 5 pumping Resources area people owned land stations; 1 new bridge Bureau 300.7 m². affected. assignment; construction; 220000 m² of 139.8 mu of turf slope protection. temporary occupation of collective land. PMO of Wuhe County Gully dredging; 1 pumping 101 139.69 7 Wuhe N/A Subproject station; one surface water households permanent works and 54 km of pipeline; County with 420 acquisition one WWTP; 9.9 km of road; persons of collective

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Project Impacts SL. Project Components Construction Contents IAs Affected Remarks Lands Houses People one WWTP; 9.9 km of road; persons of collective 17 km of storm water pipeline. affected land; 13 mu of state- owned land assignment. Flood release component: desilting of water-storage pond, treatment of flood- discharge ditch; pipeline Demolition component: improving 6115 m Huaiyuan Affecting of 1686m² of drainage pipelines of Lizuizi, construction Huaiyuan County 21 12mu of of urban Langanqiao and Xinzhuangzi bureau, 8 Subproject households state-land houses; drainage systems; flood water with 100 assignment demolition Program: discharging pumping stations: resources persons. of 4 stores new construction of Lizuizi bureau of 436m². flood-discharging pumping station, upgrading Xinzhuangzi flood-discharging pumping station.

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Project Impacts SL. Project Components Construction Contents IAs Affected Remarks Lands Houses People Temporary Chengguan 484 occupation Storm water pipe7800 m; town of households of state- N/A roads: 8600 m. Huaiyuan with 1936 owned land County persons 33.7 mu

Ã107 

RESETTLEMENT POLICY FRAMEWORK

FOR

CHINA: BENGBU INTEGRATED ENVIRONMENT IMPROVEMENT

PROJECT

(BIEIP)

PROJECT MANAGEMENT OFFICE OF BIEIP

September 2007

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List of Contents

I. BACKGROUND 1

OBJECTIVES, PRINCIPLES AND TERMINOLOGY OF THE POLICY FRAMEWORK 1

PREPARATION AND APPROVAL OF RAP 3

INSTITUTIONAL AND LEGAL FRAMEWORK 5

IMPLEMENTATION PROCESS 8

ARRANGEMENT OF FUNDS 9

PUBLIC PARTICIPATION OF INFORMATION PUBLICITY 9

GRIEVANCE PROCEDURE 9

MONITORING & ASSESSMENT 10

ANNEX 1: OUTLINE OF RAP 11

ANNEX 2: QUESTIONNAIRE FOR RESETTLEMENT IMPACTS AND SOCIO-ECONOMIC SURVEY 15

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I. Background 1. Bengbu Integrated Environment Project (BIEIP) was applied as a package in February 2005 to the National Development and Reform Commission (NDRC). In September 2005, BIEIP was approved by NDRC via Ref. FGWZ[2005]1928 as the candidate projects applying the World Bank loans during the financial years of 2006 – 2008, with a proposed loan quota of USD 100 million from the World Bank. In March 2006, the 3URMHFW3URSRVDO was approved by the DRC of Anhui province via Ref. FGWZ[2006]229, and forwarded to the NDRC via Ref. FGWZ[2006]230. Meanwhile, the Financial Department of Anhui reported this project to the Ministry of Finance (MOF) via Ref. CZ[2006]242. 2. As the old industrial base of Anhui province, Bengbu city plays a role in directly promoting the development of other cities located in the northern Anhui and has the critical function in the whole Huai River catchment areas. In the past decade, the flood disasters occurred frequently in Huai River causing serious threats to the weak capacities in flood control and urban drainage of Bengbu city and its neighboring three counties (Huaiyuan County, Guzhen County and Wuhe County). Especially in the flood from June to July 2003, tens of thousands of mu of farmlands failed to harvest, nearly one hundred villages were inundated, a number of dykes were destroyed and many factories, schools and residential areas were flooded, bringing enormous losses. 3. In consideration of the above situation, the BIEIP, based on the existing conditions of Huai river and its tributaries, Tianhe Lake, Longzi lake, Xijiagou and Baligou canal, aims to improve the flood, water-logging, river course management. The objectives are: (i) The cities along the trunk river of Huai river have the flood resistance capacity of 1% return frequency, while the major tributaries of 5%; (ii) Upgrade the storage and supply capacity of the drinking water sources of the city, and keep the water at above Class-III category on permanent basis; (iii) Gradually form the integrated urban ecological environment of mountains, lakes and eco-landscaping; (iv) Safeguard the security of the production and living of the citizens, improve the living environment and realize the coordinating sustainable economic and social development. 4. The components of the BIEIP mainly include three parts: (i) comprehensive water resources management; (ii) flood and water-logging control; and (iii) improvement of urban infrastructure. The project involves the urban area of Bengbu city and its three counties, Guzhen County, Wuhe County and Huaiyuan County, respectively. RAPs have been prepared to cover the resettlement impacts identified by the project appraisal. This resettlement policy framework is prepared to cover the impacts caused by: (i) the future land acquisition scheduled in 2008 in development of the associated WWTP of Bengbu High/New Tech Industrial Development District (BHDD) of the urban (south of Huai river) infrastructure subproject of BIEIP; (ii) the future land acquisition and house demolition for land reservation of Mohekou Industrial Zone (MIZ) in Wuhe County; (iii) moving of the chemical factories to the zone; and (iv) design variation during implementation, etc. Objectives, Principles and Terminology of the Policy Framework 5. The Resettlement Framework is prepared based on the 2SHUDWLRQDO 3ROLFLHV IRU ,QYROXQWDU\ 5HVHWWOHPHQW (OP4.12) issued by the World Bank in December 2001, with the general objectives of: 1Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

¾ Avoid or minimize resettlement, wherever feasible; ¾ If resettlement cannot be avoided, the resettlement activities should be conceived and implemented as the sustainable development; and sufficient funds should be provided to enable the APs to share the benefits brought by the project construction. To consult with the APs, enabling them to have the chances in fully participating in the planning and implementation of the resettlement plan; ¾ The APs should be supported to improve their livelihood and restore to or even better than the previous levels before the project. 6. The policy framework has set out the principles, applicable standards, rights, legal and policy frameworks, modes of compensation and rehabilitation, participation, procedure for complains and grievances, etc. that are related to the resettlement, and thus guide the activities such as the compensation, relocation and restoration, etc. 7. Each resettlement plan should be based on the collected recognizable basic information7. The resettlement shall involve the following people: ¾ People whose agricultural lands, or rural houses and house sites are fully or partially affected by the project, wherever permanently or temporarily; ¾ People whose urban residential houses are fully or partially affected by the project, wherever permanently or temporarily; ¾ People whose commercial business (enterprises, institution, stores) are fully or partially affected by the project, wherever permanently or temporarily; ¾ People whose crops or ground attachments are fully or partially affected by the project, wherever permanently or temporarily. 8. This policy framework is prepared based on the 2SHUDWLRQDO 3ROLFLHV IRU ,QYROXQWDU\5HVHWWOHPHQW (OP4.12) of the World Bank, with the principles and objectives of: ¾ Minimize the requisition of lands, properties and the corresponding resettlement activities; ¾ As the cut-off date of the baseline investigation, all the APs shall be eligible to require restoration measures, enabling them to improve or at least maintain the living standard, earning capacity and production level as before the project; Lack of legal entitlements upon assets loss shall be without prejudice to the rights of having the measures of resettlement; ¾ The measures for resettlement shall include: (1) Residential houses and buildings should be compensated at the replacement costs8 that are without

"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

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depreciation or recovery of residual values; (2) Exchange of farmland with equal productivity acceptable to the APs; (3) Exchange of houses and house sites with equal quantity acceptable to the APs; and (4) Relocation and living subsidies. ¾ If the APs accept the exchange of houses and house sites and agricultural land, the replaced lands should be the nearest to the lands they have lost; ¾ The transition period for resettlement should be minimized, and the recovery measures should be given to the APs in advance of the anticipated starting date; ¾ The acquisition plan for land and other assets, including the restoration measures, should be discussed with the APs thoroughly to enable the minimization; The APs should have the priority before the anticipated date of starting; ¾ Maintain or improve the existing levels of services and resources of the community; ¾ Ensure the usability of the financial and material sources relating to resettlement and restoration wherever necessary; The budget of the RAP should be provided with contingency; ¾ The organizational arrangement should ensure that the properties and resettlement can be effectively and timely designed, planned, consulted and implemented; ¾ The RAP implementation should be effectively and timely supervised, monitored and evaluated. Preparation and Approval of RAP 9. The preparation and implementation of the RAP (including the payment relating to the RAP) shall be the responsibilities of the borrower. The BPMO shall assume the full responsibility of the BIEIP. The BPMO is set under DRC of Bengbu city. 10. Due to the changes of project scheme, when the affected people are over 200 persons, the BPMO, along with the IAs, should prepare the RAP. This RAP shall be submitted to the World Bank by the BPMO. At the same time, adequate consultation with he APs should be made, enabling them to have the chances in participating in the design and implementation of the RAP. 11. On the basis of the Operational3ROLFLHVIRU,QYROXQWDU\5HVHWWOHPHQW (OP4.12) of the World Bank, the RAP should cover the following contents, if applicable. Those irrelevant issues should be noted in the RAP. ¾ Overall introduction of project; ¾ Identification of potential project impacts; ¾ Objectives (Major objectives for the RAP); ¾ Socio-economic study: The study findings should be in the early stage of the project preparation in that the potential APs should be included, including the results of survey and other description; ¾ Legal framework: The analytical findings under the legal framework, including the power limitation of the resettlement executing agency and its corresponding 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. Ã

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nature of compensation, applicable laws and administrative procedures, relevant legislation of social welfare, laws and regulations, as well as necessary legal procedures; ¾ System framework: Including the identification of the responsible resettlement institutions, NGOs that may exert functions; assess their institutional capacity and any procedures that may strengthen their institutional capacity; ¾ Eligibility: Determine the eligibility of APs whether they are qualified to receive the compensation or other assistance; ¾ Evaluation and compensation of losses; ¾ Measures for resettlement and restoration, and describe the resettlement measures such as monetary compensation; ¾ Selection of relocation sites, preparation and re-arrangement; ¾ Provision of residential houses, infrastructure and social services; ¾ Environmental protection and management; ¾ Public participation and negotiation, with the APs and relevant communities involved; ¾ Integration with local people, and mitigate the impacts of resettlement on local communities; ¾ Grievance procedure: Availability of the third party’s settlement of the disputes and the approachable procedures; ¾ Institutional organizations and responsibilities; ¾ Implementation progress schedule; ¾ Costs and budget; ¾ Monitoring & evaluation. 12. The RAP should be completed at least 6 months before the anticipated resettlement. Before the implementation of the RAP, a minimum of three months shall be given to the World Bank for reviews. Only after the World Bank has approved the RAP that has been certified by the BPMO and IAs, the activities of compensation, resettlement and restoration can be started. Compensation, resettlement and restoration activities should be completed before the start of civil works. 13. When the affected people are less than 200 persons in any subproject, the BPMO, along with the IAs, should prepare the simplified RAP and submit it to the World Bank. At the same time, the adequate consultation with the APs should be made, enabling them to have the chances in participating in the design and implementation of the RAP. 14. On the basis of the Operational3ROLFLHVIRU,QYROXQWDU\5HVHWWOHPHQW (OP4.12) of the World Bank, the simplified RAP should cover the following contents: ¾ Details of APs and assets evaluation; ¾ Description of the available compensation and other resettlement assistances; ¾ Communication with APs for the acceptable alternative scheme; ¾ Institutional responsibilities for implementation and procedure of grievance; ¾ Arrangement of monitoring and implementation; ¾ Progress schedule and budge. 15. The simplified RAP should be completed at least 4 months before the anticipated start. Before the implementation of each simplified RAP, a minimum of three months shall be given to the World Bank for reviews. Only after the World Bank has approved the RAP that has been certified by the BPMO and IAs,

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the activities of compensation, resettlement and restoration can be started. Compensation, resettlement and restoration activities should be completed before the start of civil works. Institutional and Legal Framework 16. The legal framework guiding the resettlement activities include: 2SHUDWLRQDO 3ROLFLHV IRU ,QYROXQWDU\ 5HVHWWOHPHQW (OP4.12) of the World Bank; the laws, regulations of decrees of the People’s Republic of China, including those of the country, Anhui province, Bengbu city and relevant city and counties. 17. These laws and regulations are listed in the following: Date of Policy Documents Effectiveness

/DQG$GPLQLVWUDWLRQ/DZRIWKH3HRSOH V August 28, 2004 5HSXEOLFRI&KLQD

5HJXODWLRQVIRUWKH,PSOHPHQWDWLRQRIWKH/DQG December. 27, $GPLQLVWUDWLRQ/DZRIWKH3HRSOH¶V5HSXEOLFRI 1998 &KLQD

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Date of Policy Documents Effectiveness

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Policy OP 4.12, and ,QYROXQWDU\5HVHWWOHPHQW January 1, 2002 World Appendixes Bank Procedure BP 4.12, ,QYROXQWDU\5HVHWWOHPHQW January 1, 2002 and Appendixes

18. The objective of compiling the RAP is to ensure that the APs should have sufficient chances in replacing their lost properties, improving or restoring their previous income and living standards. In order to realize these targets, it should be ensured that all the APs should be identified and all the measures in the RAP are reasonable in the opinions of the APs. With a view to the types of impacts, such as land acquisition and occupation, demolition of residential houses (incl. rural and urban houses), demolition of non-residential houses (incl. enterprise, institution, store, etc.), the following measures are normally adopted. 19. The APs who have lost their agricultural land shall have the rights to the compensation and restoration measures of the following types: ¾ The remained collective farmland after land acquisition shall be re-distributed among all the members of the collective entity by the village committee. Under this circumstance, if the partial land acquisition to be acquired may endanger or

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defunctionalize the houses or buildings, the full land should be requisitioned. All the APs should be eligible to participate in the redistribution of land and benefit from the investment using the compensation for acquisition of the collective land. ¾ According to the /DQG$GPLQLVWUDWLRQ/DZRIWKH3HRSOH V5HSXEOLFRI&KLQD and relevant laws, as for the places without the possibility of re-distributing the land, the people who have lost the cultivated land should be identified. In some circumstances, these people will be provided with the paid-job opportunities in that the offered salary shall be identical to their losses. The other circumstance is that, the APs should at least get the resettlement subsidies that are calculated based on the 4-6 times of the AAOV of the three years before losing the land. Even with these measures, if the APs still fail to completely restore their previous living standard, the resettlement subsidies can be increased to as much as 15 times of the AAOV of the three years before losing the land. ¾ If the land compensation and the resettlement subsidies still fail to restore the living standards of the APs, the people’s governments concerned should offer the assistance with the paid-use income of the state-owned land. ¾ The land compensation and resettlement subsidies shall be paid to the affected villagers’ committee or APs, being used in (i) increasing the area of cultivated land, if possible; (ii) improve agriculture through upgrading the irrigation and working methods, etc.; (iii) develop non-agricultural incomes based on the existing activities. As the compensation for fixed assets, the damaged crops, fruits and economic forest, etc. shall be compensated as per the replacement costs. ¾ The income losses, crops, land recovery and damaged facilities caused by temporary land occupation shall be also compensated. 20. Demolition of the houses and ground attachments shall be compensated as the follows: ¾ Provision of the same-value house as exchange; ¾ Compensation at full replacement costs; ¾ Reconstruction or recovering compensation for all facilities and services (such as road, water supply, power supply, telephone, cable TV and school, etc.); ¾ The subsidies for transition period should ensure that they are adequate to transfer all properties or get transitional houses. 21. The APs who lose their business (or operating income) shall have the right to enjoy the following recovering measures: ¾ The mitigating measures for those losing business incomes include: (1) provision of the same-area business point that has the similar customer sources; (2) monetary compensation for the demolished houses and facilities at full replacement costs; (3) provision of transition compensation for the expenses and affected sale income during the period of non-business operation. ¾ The mitigating measures for those losing job incomes include: (1) provision of job opportunities of the same salary income; (2) provision of monetary compensation identical to the salary loss for three years; (3) provision of transition subsidies, training for re-employment, or other necessary measures enabling them to get new jobs. Implementation Process 22. Before implementing land acquisition and demolition, MIZ should obtain necessary legal approval for land acquisition.

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23. Only after the World Bank has approved the RAP that has been certified by the BPMO and IAs, the activities of compensation, resettlement and restoration can be started. 24. The RAP should contain the implementation schedule for all the proposed activities. The payment of compensation and the restoration measures of other entitlements (cash or in-kind), as well as the resettlement, shall be completed one month before the land acquisition, where necessary. If full compensation cannot be paid before land acquisition, or without other necessary assistance, the additional subsidies for transition period should be provided. Arrangement of Funds 25. As indicated in para. 10 above, the BPMO and all IAs shall bear all expenses and charges relating to the land acquisition and resettlement. Any RAP based on the resettlement policy framework should include costs estimate and budget arrangement. Regardless of the eligibility identification as APs, or the in-place of sufficient mitigating funds, all the people adversely affected by the land acquisition of the project shall be liable to be compensated or enjoy any other suitable mitigating measures. Therefore, the budget of RAP should contain contingency, an amount of 10% or more of the total resettlement budget to cover the unforeseen resettlement expenses. 26. The compensation standards set out in the RAP are the basis for computation of compensation costs. All the resettlement compensation should be fully paid to the individuals or collective who have lost their lands or other properties. Any deduction in any reasons thereof shall be prohibited. The RAP should also describe the procedure of paying the compensation funds to the APs. In this regard, the basic principle is that the fund circulation should be directed as much as possible to minimize the interim links. Public Participation of Information Publicity 27. The RAP should describe the measures adopted or to be adopted, enabling the APs to participate in the proposed resettlement arrangement and cultivate their consciousness of participation in the activities of improving or restoring their livelihood. In order to ensure that all the requirements of the APs have been fully considered, the public participation should be arranged prior to the project design and implementation of the mitigating measures. In addition, public participation shall be addressed throughout the whole process of RAP implementation and external monitoring. 28. In the stages of drat and final version of RAP, the BPMO and all IAs should publicize the RAP in the pre-determined places in a certain language to the APs. The publicity of the draft RAP should be made at least one month before the assessment of the World Bank. After being approved by the World Bank, the final version of RAP should be publicized again. Grievance Procedure 29. Since the resettlement activities are conducted with the participation of APs, there will not cause any great disputes during implementation. However, in order to provide sufficient channels to lodge grievances on all the issues relating to the land acquisition and resettlement, the following grievance procedure should be established: ¾ Stage 1: If the APs are unsatisfied with resettlement, they can complain

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orally or in written form to the IAs. In the evident of oral complaint, the IAs should handle the complaint and keep written records. The IAs should make the resolution within two weeks. ¾ Stage 2: If the APs are still unsatisfied with the resolution in Stage 1, they can lodge complaint to the BPMO, and the BPMO make resolution within two weeks. ¾ Stage 3: If the APs are still not satisfied with the decision of the BPMO, they may, after receiving the decision, lodge complaints to the administrative organs for arbitration level by level according to $GPLQLVWUDWLYH3URFHGXUH /DZ RI WKH 3HRSOH V5HSXEOLFRI&KLQD ¾ Stage 4: If the persons are still unsatisfied with the above decision, they may, after receiving the arbitration decision, appeal to the People’s Court in accordance with&LYLO3URFHGXUH/DZRIWKH3HRSOH¶V5HSXEOLFRI&KLQD Monitoring & Assessment 30. The BPMO should undertake supervision and monitoring of the implementation of the RAP. The results of supervising and monitoring should be recorded in the quarterly report and be submitted to the World Bank. 31. Internal monitoring and inspection. ¾ Performance inspection, including inspecting the terms and conditions as set out in the policy framework, RAPs, baseline information of APs, assets losses and evaluation, compensation terms, resettlement and restoration, etc. ¾ Monitor the implementation of the design and scheme approved in the RAP. ¾ Inspect whether the funds for resettlement are in place and fully paid, as well as whether these funds are used pursuant to the terms of the RAP. ¾ Make record of all the complaints and resolution, ensuring the timely settlement of the grievances. 32. External independent monitoring. The BPMO will engage independent institutions or consultants to undertake regular external monitoring and assessment of the implementation of the RAP. These independent institutions or individuals should be the academic units, NGO or independent consulting firms who should have the eligible and experienced staff and accept the terms of reference provided by the World Bank. 33. Verification of the internal monitoring information and the monitoring report. The external monitoring institution should, after 6 months of implementation of the RAP, make random inspection of the 20% of the APs, with the main targets to: ¾ Verify the procedures of public participation, payment of compensation and restoration, as well as the concordance between the policy framework and the implementation of the RAP. ¾ Evaluate whether the target of the policy framework of “improve or the livelihood and restore to or even better than the previous living standards before the project” has been realized or not. ¾ Collect the qualitative indicators of the socio-economic impacts on APs caused by the project implementation. ¾ Make recommendations to the procedure of implementation of the RAP to embody the principles and objectives of the resettlement policy framework.

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Annex 1: Outline of RAP

1 Profile 1.1 Brief Introduction 1.2 Project Preparation and Progress 1.3 Benefited Area and Affected Area 1.4 Introduction to Social Economy of the Project Area 1.5 Total Project Investment and Fund Sources 1.6 Mitigating Measures for Project Impacts 2 Project Impacts 2.1 Acquisition of Rural Collective Land 2.2 Permanent Acquisition of State-owned Land. 2.3 Temporary Land Occupation 2.4 Demolition of Residential Houses 2.4.1 Rural Residential Houses 2.4.2 Urban Residential Houses 2.5 Affected Enterprise 2.6 Affected Institutional Units 2.7 Affected Stores 2.8 Unregistered Houses 2.9 Affected Population 2.10 Vulnerable Groups, Floating Population and Ethnic Minority 2.11 Ground Attachments and Infrastructure Affected 3 Survey Results of Socio-Economic Situation 3.1 Socio-Economic Survey Results for City (County), Town and Rural Area Affected by the Project 3.2 Sampling Survey Results for Family Conditions of Affected Households 3.2.1 Age Distribution, Education and Ethnic Background of Population 3.2.2 Survey of Production Resources (Land Resources, etc.) 3.2.3 House Floorage 3.2.4 Household Annual Income and Expenditure 3.3 Sampling Survey Results for Family Conditions of Affected Urban Households 3.3.1 Age Distribution, Education and Ethnic Background of Population 3.3.2 House Floorage

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3.3.3 Household Annual Income and Expenditure 3.4 Survey of Affected Enterprise and Institutions 3.5 Survey of Affected Stores 3.6 Situation of Unregistered Houses 3.7 Basic Conditions of the Affected Vulnerable Groups 3.8 Basic Conditions of the Affected Ethnic Minorities 4 Legal Framework and Policies 4.1 Basic Laws and Policies for Resettlement 4.2 Terms and Conditions of Relevant Laws and Regulations Regarding Resettlement 4.3 Resettlement Policy of the Project 4.3.1 Compensation of Acquisition of Collective Land and Labor Settlement Policy 4.3.2 Compensation Standards for Permanent Occupation of State- owned Land 4.3.3 Compensation for Temporary Land Occupation and Restoration Policy 4.3.4 Compensation and Resettlement Policy for Demolition of Residential Houses (Rural and Urban) 4.3.5 Compensation and Resettlement Policy for Demolition of Non- Residential House (Enterprise, Institution and Store) 4.3.6 Compensation Policies for Unregistered Houses 4.3.7 Compensation Policy for Floating Population and Vulnerable Groups 4.3.8 Compensation for Affected Ground Attachments and Infrastructure 5 Compensation Standards 5.1 Compensation Standards for Acquisition of Rural Collective Land 5.2 Compensation Standards for Use and Transfer of State-owned Land 5.3 Compensation Standards for Temporary Occupation of Collective Land 5.4 Compensation Standards for Demolition of Residential Houses 5.4.1 Demolition of Rural Houses 5.4.2 Demolition of Urban Residential Houses 5.5 Compensation Standards for Demolition of Non-Residential Houses

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5.5.1 Compensation Standards for Demolition of Enterprise 5.5.2 Compensation Standards for Demolition of Institution 5.5.3 Compensation Standards for Demolition of Stores 5.6 Compensation Standards for Demolition of Unregistered Houses 5.7 Compensation Standards for Ground Attachments and Facilities 6 Plan for Production and Living Rehabilitation 6.1 Objectives and Principles of Resettlement 6.2 Resettlement for Permanent and Temporary Land Occupation 6.2.1 Impacts Analysis and Resettlement Scheme for Permanent Land Acquisition 6.2.2 Impacts Analysis and Resettlement Scheme for Temporary Land Acquisition 6.3 Demolition and Resettlement of Residential Houses 6.3.1 Demolition of Rural Houses 6.3.2 Demolition of Urban Residential Houses 6.4 Demolition and Resettlement of Non-Residential Houses 6.4.1 Demolition and Resettlement of Enterprise 6.4.2 Demolition and Resettlement of Institution 6.4.2 Demolition and Resettlement of Stores 6.5 Unregistered Houses 6.6 Floating Population and Vulnerable Groups 6.7 Affected Infrastructure and Ground Attachments 7 Public Participation 7.1 Strategy for Public Participation 7.2 Process and Public Participation and Plan for Policy Publicity 8 Grievance Procedure 9 Institution 9.1 Relevant Institutions for Resettlement Activities 9.2 Organizational Chart 9.3 Responsibilities of Resettlement Institutions 9.4 Institutional Competence and Staffing 9.5 Measures for Strengthening Institutional Capacities 10 Implementation Schedule 10.1 Implementation Principle for Coordinating Resettlement and Project Construction 10.2 Schedule for Milestone Activities for RAP Implementation

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11 Costs and Budget 11.1 Costs 11.2 Annual Funds Utilization Plan 11.3 Resettlement Fund Sources 11.4 Fund Flow and Payment Plan 11.4.1 Fund Flow 11.4.2 Payment and Management 12 Monitoring & Assessment 12.1 Internal Monitoring 12.1.1 Implementation Procedures 12.1.2 Monitoring contents 12.1.3 Internal Monitoring Report 12.2 External Independent Monitoring 12.2.1 Independent Monitoring Institution 12.2.2 Procedure and Contents of Monitoring 12.3 Monitoring Indicators 12.4 Post Assessment 13 Entitlement Matrix

Appendix I: Terms of Reference for Resettlement External Monitoring and Evaluation Appendix II: Sketch Map of Project Appendix III: Minutes of Meeting for Public Participation

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Annex 2: Questionnaire for Resettlement Impacts and Socio-Economic Survey

Table 1 Permanent and Temporary Occupation of Rural Collective Land by Project and Rural Economic Survey

Code ______Name of Subproject: ______. ______Village ______Town ______District / County ______Province Surveyor:

I. Introduction Type of Land (mu) Existing Area Proposed Proposed Acquisition Temporary Occupation

Population Total Households (nos) Paddy Field

Total Population (person) Irrigated land

Of which: M Dry land

Agricultural population (person) Fish Pond

Non-agricultural population (person) Vegetable Land

Labor Cost Total labors (person) Orchard land

Industrial labor House Sites

Agricultural labor

Tertiary labor IV. Affected Population Household (nos) Persons (person.) Labors (person)

Cultivated land Cultivated Land (mu) Permanent LA

Incl.: retained cultivated land Temporary Land Occupation. Paddy unit output (kg/mu)

Wheat unit output (kg/mu) Impacts of LA on rural social economy & comments on resettlement: 1. Monetary resettlement; 2. Internal land readjustment; 3. Land readjustment within village; 4. Land readjustment outside village; 5. Insurance resettlement; 6. Others 15Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Corn unit output (kg/mu) readjustment outside village; 5. Insurance resettlement; 6. Others

Total grain output

Production Gross production value ((RMB10000) Value Agri. Gross output value (RMB10000)

Indu. Gross output value (RMB10000)

Gross output value for tertiary indu. (RMB10000)

Farmer’s net Average per-capita net income of rural income farmers

Incl.: Agriculture (%)

Industry (%)

Tertiary (%)

VI. Group Population Affected by LA Proposed Group Name Existing farmland (mu) Acquisition Total Households Total Population Incl.: M Labor (nos) (person) Agriculture

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VII. Enterprise nearby affected village

Name Numbers of workers Staff’s annual Production Profits Taxes Major products Labor to be salary (RMB/yr.) Value (RMB 10000) arranged Total Incl.: local (RMB10000) (RMB10000) (person) (RMB10000)

Please specify the policy of insurance resettlement.

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Table 2 Situation of Occupation of State-Owned Land

Code ______Name of Subproject: ______.

______Village ______Town ______District / County ______Province

Surveyor:

Affected Households Types of Impacts Quantity (mu) APs (person) Labors (person) (nos)

Paddy Field

Irrigated land

Dry land

Fish Pond

State-owned farmland Vegetable Land

Orchard land Permanent occupation

Non-agricultural land

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Paddy Field

Irrigated land

Dry land

Fish Pond State-owned farmland Vegetable Land

Orchard land Temporary Land Occupation.

Non-agricultural land

Means for obtaining state-owned land: (1) Selling; (2) Transfer; (3) Assignment

Notes: The state-owned land cannot be recalculated in Table 5 and Table 6 for enterprise, institution and stores.

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Table 3 Natural Conditions of Rural Displaced Households

Code ______Name of Subproject: ______.

______Village ______Town ______District / County ______Province

Surveyor:

Name of family head

Family members (person)

General M

F

Labors (person)

Reinforced Structure

Brick Concrete

Brick Wood Demolition of residential houses Simple (m²)

Attached houses (m²) Brick Concrete

Brick Wood

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Simple

Earth-Wood

Wood

Shelter

Land grade

Nature of land ownership

(1) Self-demolition with self-reconstruction; (2) Unified demolition and reconstruction; (3) Self-reconstruction under Willingness in Resettlement unified planning

Fence wall m Trees (young) pcs

Toilet nos Tree (timbre) pcs

Hogpen nos Trees (young) pcs

Machine well pcs Fruit (mature) pcs

House attachments Hand well pcs Cement field M2

Ordinary well pcs

Telephone unit

Cable TV Unit

Gate nos

Remarks

Remarks: If land acquisition is in joint part between city and outskirt and involves property right, please fill in land grade and land ownership. Land ownership: state-owned, collective-owned.

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Houses and land attachments should be filled in faithfully.

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Table 4 Natural Conditions of Urban Displaced Households

Code ______Name of Subproject: ______.

Province ______District/ County ______Street ______Subdistrict offices:

Surveyor:

Name of family head

Family members (person)

General M

F

Labors (person)

Reinforced Structure House with titles House without titles

Reinforced Structure

Brick Concrete

House demolition (m²) Brick Wood

Simple

Land grade

House property (1) State-owned (2) Private-owned (3) others

Nature of land ownership (1) State-owned(2) collectively-owned

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Willingness in Resettlement (1) Monetary resettlement (2) Exchange of property rights

Fence wall m Trees (young) pcs

Toilet nos Tree (timbre) pcs

Hand well pcs Trees (young) pcs

Ordinary well pcs Fruit (mature) pcs

Air Conditioner Unit House attachments Telephone unit

Cable TV Unit

Gate nos

Cement field M2

Leasing or not (1) yes; (2) no

Leasing persons (nos)

Leasing period (1) Less than 1 year; (2) 1 to 3 years; (3) Over 3 years

Rent (RMB/month)

Remarks

Remarks: Houses without titles include expired temporary structure and unregistered buildings etc.

Houses and land attachments should be filled in faithfully.

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Table 5 Enterprises and Institutional Units Affected by Demolition

Code ______Name of Subproject: ______.

Province ______District/ County ______Street ______Subdistrict offices:

Surveyor:

Name of Units

Unit character

Address

Numbers of workers

Land Occupied (mu)

General principal activity

Operation profiles (1) Good (2) Normal (3) Bankruptcy

Fixed assets (RMB 10,000)

Staff’s annual salary (RMB/yr.)

Annual output value (RMB10000)

Annual profit (RMB10000)

Project Permanent Occupation (mu) Impacts Temporary Land Occupation (mu)

Demolition of house with titles (m²) Demolition of house without titles Productive house (m²)

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Reinforced Structure

Brick Concrete

Brick Wood

Simple

Reinforced Structure

Brick Concrete

Office and warehouse Brick Wood

Simple

APs (person)

Land grade

Nature of land ownership (1) State-owned(2) collectively-owned

Resettlement scheme

Costs for demolition of large-scale equipment (RMB)

Attached facilities Fence wall m Trees (young) pcs

Toilet nos Tree (timbre) pcs

Hand well pcs Trees (young) pcs

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Ordinary well pcs Fruit (mature) pcs

Air Conditioner Unit

Telephone unit

Cable TV Unit

Cement field M2

Impacts degree (Brief description)

Remarks: Unit character: enterprise (state-owned, collect-owned, private-owned, stock, joint-venture), institutional unit (education, medical and health service, finance, municipal, public security, army, culture and others). Operation: Remarks: Houses without titles include expired temporary structure and unregistered buildings etc.

Resettlement scheme: (enterprise resettlement) Enterprise internal convergence, innovation at existing site, removing to new area, filling the name of new area, select place for settlement, other means (such as resettlement by institutional unit): rebuilding at existing site, rebuilding at nearby new site and innovation of project implementing agent.

The attachments should be filled in faithfully.

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Table 6 Demolition of shops and stores

Code ______Name of Subproject: ______.

Province ______District/ County ______Street ______Subdistrict offices:

Surveyor:

Name of shops and stores

Address

Numbers of workers

Land Occupied (mu)

General Economic category:

Operation profiles (1) Good (2) Normal (3) Bankruptcy

Annual income (RMB)

Staff’s annual salary (RMB/yr.)

Annual profit (RMB10000)

Project Permanent Occupation (mu) Impacts Temporary Land Occupation (mu)

Demolition of house with titles (m²) Demolition of houses with titles Demolition of house without titles Types of Structure and without business license (m²) (Housing certificate & shop certificate) (m²)

Reinforced Structure

Brick Concrete

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Brick Wood

Simple

APs (person)

Land grade (Type of region/ land)

Nature of land ownership (1) State-owned(2) collectively-owned

Willingness in Resettlement (1) Momentary resettlement (2) migratory resettlement

Fence wall m Trees (young) pcs

Toilet nos Tree (timbre) pcs

Hand well pcs Trees (young) pcs

Ordinary well pcs Fruit (mature) pcs

Attached facilities Air Conditioner Unit

Telephone unit

Cable TV Unit

Cement field M2

29Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Impacts degree (Brief description)

Remarks: Houses without titles include expired temporary structure and unregistered buildings etc.

The attachments should be filled in faithfully.

30Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Table 7 Questionnaire on Vulnerable Group

Code ______Name of Subproject: ______.

Province ______District/ County ______Street ______Subdistrict offices:

Surveyor:

Type (by tick)

Household (esp. a single, childless and infirm aged Family person, etc.) enjoying five Name Age Sex members Address Small dwelling area (only on house guarantees(i. e. free food, (person) Ethnic which area is small than the lowest Disabled clothing medical care, MLSS Minorities standard specified by the project city) housing and burial expenses guaranteed by the government or a collective economic entity

Per-capita Income per month (RMB)

Sources of Income

Degree of Impacts

Willingness in Resettlement

31Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Table 8 Questionnaire on ground attachments and infrastructure affected

Code ______Name of Subproject: ______.

Province ______District/ County ______Street ______Subdistrict offices:

Surveyor:

Items Unit Amount

Public toilets pcs

10KV wire pole pcs

380V wire poles pcs

380V wood poles pcs

Transformer Unit

Cannel M2

Bridges nos

Highway M2

Tractor road M2

Grave (earth) nos

Graves (concrete) nos

Underground structure m

32Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Gas pipeline m

Water supply pipe m

Drainage pipeline m

Communication cable m

Electrical cables m

Lawn and & parterre M2

Tap water pipeline m

Vegetable shelter(structure) M2

machine wall, open well nos.

Scattered Trees pcs

Remarks: Except for demolition of dwelling houses (urban, rural), enterprise, institutional unit and shops,

Others should be filled in faithfully. If they are not listed in the table, more items may be added.

33Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Table 9 Questionnaire on affected households at random

Identification No.:

Name of subproject ______Province ___ District/ County ____ Street/ town _____ subdistrict office/ village

Type of resettlement: 1. urban 2. rural

Surveyor: Time of Survey

Name of interviewee: The contact details Time of Survey

Occupational period of living Ethnic Educational Conditions Family member Sex Age Married Group Level Over 18

Name of the host 1) Below 5 years

Spouse 2) 5~10 years Family family backg population 3) 10~20 years round 4) 20~30 years

5) 30~50 years

6) Generations by generations

Land Land (mu) Agricultural and by- Agricultural gross and Output (annual/mu) (kg) Plantation type produce labor income (RMB) output Existing to be acquired (person)

Paddy Field (1) Grain Agriculture

34Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Irrigated land (2) Vegetable M

Dry land (3) Flower F

Fish Pond (4) Fruit tree Side-line business

Vegetable Land (5) Tree M

Orchard land F

Students:

Family Family annual expenditure Family Annual Income Family assets incom e and (RMB) (RMB) Qty. proper ty 1. Taxes and other charges Agricultural income Color TV Unit

2. Seeds (RMB) Trading receipt Refrigerator Unit

3. Pesticide, fertilizer (RMB) Enterprise and institutional units Washing Machine Unit salary income

4. Irrigation charges (RMB) Out-going employment income Electrical fan Unit

5. Machine operational charges (RMB) Other revenue Air Conditioner Unit

6. Electricity charges (RMB) Telephone unit

7. Water consumption charges (RMB) Mobile phone unit

8. Communication expenses Motorcycle unit

35Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

9. School tuition (RMB) Tractor unit

10. Medical Cost (RMB) Other machine unit

11. Fuel cost (RMB)

12. Charges for non-staple foodstuff

13. Others

Total annual expenditure Total annual income

36Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Table 10 Questionnaire on Public Opinion and Suggestions

Name of subproject ______Province ___ District/ County ____ Street/ town _____ subdistrict office/ village

Surveyor: Age Sex Occupation

Surveyor: Time of Survey

SL. Question Answers Results

(1) (2) (3) (4) (5)

1 Do you know about this project? (1) yes; (2) not clearly; (3) no

2 Information sources of this project and (1) Newspaper (2) meeting (3) neighbor (4) social surveyor acquisition

3 Are you in favor of this sub-project to be (1) yes; (2) no; (3) don’t care constructed?

4 Whom do you think this sub-project would be a) State (1) yes; (2) no beneficial to? (multiple options)

b) Collective (1) yes; (2) no

c) individuals (1) yes; (2) no

5 What benefits would the sub-project bring to (1) Protect the security of life and property; (2) Improve agricultural you? production condition; (3) Increase economic income (4) Improve ecological environment; (5) Others

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6 What negative impacts would this sub-project (1) No adverse impacts (2) Communication affected by project bring to you? construction; (3) House demolition may cause economic loss; (4) Land acquisition may reduce economic income; (5) Other adverse impacts.

7 Do you know about resettlement policies for (1) Yes, (2) A little; (3) Nothing land acquisition and demolition?

8 Do you know grievance if your legal rights are (1) yes; infringed by others during land acquisition and demolition? (2) no

9 Willingness to choose compensation for land (1) Cash compensation, no exchange of land; (2) Exchange of land; acquisition compensation comes to the collective unit; (3) Others (please list them) ______.

10 If you hope to get cash compensation, you (1) Be engaged in the secondary and tertiary industries; (2) Out- will going for work; (3) Adjust industrial structure; (4) Buy insurance; (5) Others (please give reasons) ____ .

11 After land acquisition, what help do you need? (1) Technical training; (2) Provided with employment information; (3) Others (please give details) ______.

38Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Table 11 Questionnaire on Social Economy of the Affected City or County

Code ______Name of Subproject: ______.

Province ______District/ county

Surveyor:

Population Total Households (nos)

Total Population (person)

Of which: M

Agricultural population (person)

Labor Total labors (person)

Industrial labor

Agricultural labor

Tertiary labor

Cultivated land Cultivated Land (mu)

Grains Plantation Area (10000 mu)

Total yield (t)

Unit yield (kg/mu)

39Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Oil crops Plantation Area (10000 mu)

Total yield (t)

Unit yield (kg/mu)

Others Plantation Area (10000 mu)

Total yield (t)

Unit yield (kg/mu)

Output value (GDP) Gross production value ((RMB10000)

Agri. Gross output value (RMB10000)

Indu. Gross output value (RMB10000)

Gross output value for tertiary indu. (RMB10000)

Financial revenue: (RMB100 million)

Towners’ per-capita average disposable income (RMB)

Farmer’s Annual Average Per-Capita net Income (RMB)

40Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Table 12 Questionnaire on Social Economy of the Affected Town or Village

Code ______Name of Subproject: ______

______Village ______Town ______District / County ______Province

Surveyor:

Population Total Households (nos)

Total Population (person)

Of which: Male (persons)

Agricultural population (person)

Labor Total labors (person)

Industrial labor

Agricultural labor

Tertiary labor

Cultivated land Cultivated Land (mu)

Grains Plantation Area (10000 mu)

Total yield (t)

Unit yield (kg/mu)

41Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Oil crops Plantation Area (10000 mu)

Total yield (t)

Unit yield (kg/mu)

Others Plantation Area (10000 mu)

Total yield (t)

Unit yield (kg/mu)

Output value (GDP) Gross production value ((RMB10000)

Agri. Gross output value (RMB10000)

Indu. Gross output value (RMB10000)

Gross output value for tertiary indu. (RMB10000)

Financial revenue: (RMB100 million)

Towners’ per-capita average disposable income (RMB)

Farmer’s Annual Average Per-Capita net Income (RMB)

42Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Table 13 Questionnaire on land acquisition, compensation unit price and compensation policies

Code ______Name of Subproject: ______

. Province ______District/ county

Surveyor:

Compensation Standards Basic policies

Compensati on Compensation Subsidy Multiples multiples City / Types of Impacts AAOV (RMB/mu) Multiples for Province for Resettlement for County Land standing crops

Average value

Permanent Paddy Field occupation of collective Irrigated land land

Dry land

Fish Pond

Vegetable

Land

Orchard land

43Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Transferring mode RMB/mu Permanent acquisition Assignment mode RMB/mu of state- owned land Assignment

Paddy Field RMB/mu

Irrigated land RMB/mu

Dry land RMB/mu Temporary acquisition Fish Pond RMB/mu of collective land Vegetable Land

Temporary Acquisition of State-owned RMB/mu Land.

Farmland reclamation Land RMB/mu acquisition charges taxes and charges 44Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ charges Compensation paid for the use of additional land for RMB/mu construction

Farmland occupation tax

RMB/mu Land acquisition

administration fees

45Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Table 14 Questionnaire on demolition of dwelling buildings, compensation unit price and compensation policies

Code ______Name of Subproject: ______.

Province ______District/ county

Surveyor:

Types of Impacts Type of Structure Unit Compensation Basic policies Standards Province City / County

Rural house Reinforced Structure RMB/m2 demolition Brick Concrete RMB/m2

Brick Wood RMB/m2

Residential house Simple RMB/m2

Attachments Brick Concrete RMB/m2

Brick Wood RMB/m2

Simple RMB/m2

46Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Earth-Wood RMB/m2

Wood RMB/m2

Shelter RMB/m2

Moving subsidies

Transition subsidies

Other Compensations Subsidies for Temporary Relocation

Reward for advance moving

Demolition of urban Reinforced Structure RMB/m2 dwelling houses

Structures

Reinforced Structure RMB/m2

Brick Concrete RMB/m2

Brick Wood RMB/m2

47Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Simple RMB/m2

Moving subsidies

Transition subsidies

Other Compensations Subsidies for Temporary Relocation

Reward for advance moving

Brick Concrete RMB/m2

Brick Wood RMB/m2 Demolition of unregistered structure Simple RMB/m2

Others RMB/m2

Unregistered structures include expired temporary structure and unregistered buildings etc.

48Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Table 15 Questionnaire on demolition of non-dwelling buildings, compensation unit price and compensation policies

Code ______Name of Subproject: ______.

Province ______District/ county

Surveyor:

Type of Structure Unit Compensation Basic policies Types of Impacts Standards Province City / County

Enterprise Reinforced Structure RMB/m2

Brick Concrete RMB/m2

Productive house Brick Wood RMB/m2

Simple RMB/m2

Reinforced Structure RMB/m2

Brick Concrete RMB/m2

Office and warehouse Brick Wood RMB/m2

Simple RMB/m2

Others RMB/m2

49Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Business ceasing transition subsidies

Transition subsidies Other Compensations

Moving subsidies

Reinforced Structure RMB/m2

Brick Concrete RMB/m2

Structures Brick Wood RMB/m2

Simple RMB/m2

Others RMB/m2 Institutional units

Business ceasing transition subsidies

Transition subsidies Other Compensations

Moving subsidies

Stores Structures Reinforced Structure RMB/m2

Brick Concrete RMB/m2

50Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Brick Wood RMB/m2

Simple RMB/m2

Others RMB/m2

Business ceasing transition subsidies

Transition subsidies Other Compensations

Moving subsidies

Reinforced Structure RMB/m2

Brick Concrete RMB/m2

Unregistered houses Brick Wood RMB/m2

Simple RMB/m2

Others RMB/m2

Unregistered structures include expired temporary structure and unregistered buildings etc.

51Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Table 16 Compensation Standard for Ground Attachment and Special Facilities

Code ______Name of Subproject: ______.

Province ______District/ county

Surveyor:

Items Unit Compensation Standards (RMB/unit) Basic policies

Public toilets pcs

10KV wire pole pcs

380V wire poles pcs

380V wood poles pcs

Transformer Unit

Cannel M2

Bridges nos

Highway M2

Tractor road M2

Grave (earth) nos

Graves (concrete) nos

52Ã %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Underground structure M

Gas pipeline M

Water supply pipe M

Drainage pipeline M

Communication cable M

Electrical cables M

Lawn and & parterre M2

Tap water pipeline M

Vegetable shelter(structure) M2

machine wall, open well nos.

Trees (young) pcs

Tree (timbre) pcs

Scattered Trees pcs

Gate nos

53Ã %HQJEX,QWHJUDWHG(QYLURQPHQW,PSURYHPHQW3URMHFW)LQDQFHGE\WKH:RUOG%DQN Ã

RETROACTIVE REVIEW

ON

LAND ACQUISITION AND RESETTLEMENT OF MOHEKOU

INDUSTRIAL ZONE

FOR

CHINA: BENGBU INTEGRATED ENVIRONMENT IMPROVEMENT PROJECT

(BIEIP)

PROJECT MANAGEMENT OFFICE OF BIEIP

September 2007

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1. Background of Project

With years’ rapid development, especially in the “Tenth Five Year Plan” period, Bengbu fine chemical industry has shared some proportions in domestic and international markets, showing its own character and advantages. However, due to the historical reasons, the industrial distribution of fine chemical industry of Bengbu city is comparatively scattered, lacking the unified planning and exertion of regional advantages. In order to fully utilize the existing industrial advantages, further optimize the enterprise and industrial distribution, develop the enterprise’s potential competitive capacity, as well as realize the optimal resources configuration and sharing of infrastructure, Anhui Development and Reform Commission approved the Development Plan of Bengbu Fine Chemical Industry in Approval for the Development Plan of Bengbu Fine Chemical Industry, Ref. FGGY[2004]209, agreeing that chemical industrial zone in Mohekou town of Wuhe County shall be treated as the chemical industrial base that accommodates the chemical enterprises retreating from the urban area of Bengbu city. The first phase of the industrial zone is 5km (equivalent to 7500 mu). With the coming of chemical enterprises retreating from the urban area, the outlook of Bengbu city will be greatly upgraded. The enterprises entering the zone will adopt environmental integrative management, and the wastewater shall be discharged after reaching the standard. Such is of great significance to environmental upgrading of Huaihe River and plays a leading role in regional economic development, improvement of investment environment, establishment of chemical zone of environmental type and the development of circular economy.

The first phase occupies a total area of 7500 mu. Starting from March 2006, the People’s Government of Wuhe County implemented the works of land acquisition and collection. So far, the intented land acquisition of 3842 mu of rural collective land has been agreed with the villagers, of which, 1100 mu have been requisitioned. It is anticipated that Anhui Land Resources Department will approve this 1100 mu by September 2007. The rest of 6400 mu will be requisitioned gradually according to the needs of the project construction. From March to December 2006, the 1100 mu of cultivated land had been requisitioned, and all the compensation and resettlement thereof have been mobilized in place. Therefore, this RAP makes reviews and analysis of the completed land acquisition and resettlement of Mohekou Industrial Zone (MIZ). Acquisition of the rest of land shall be applied and approved gradually according to the needs of the industrial park construction. During the implementation of the project, the PMO of Wuhe Mohekou Industrial Zone has worked out the resettlement framework. In case of future land acquisition, the compensation and resettlement shall follow the policy framework set out for BIEIP.

2. Notes to the Construction Land Approval of

Mohekou Industrial Zone

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According to the /DQG$GPLQLVWUDWLRQ/DZRIWKH3HRSOH¶V5HSXEOLFRI &KLQD, all units and individuals that need land for construction purposes shall apply for the use of state-owned land. This is to say that, any units and individuals are not allowed to use the collective land for construction activities. The construction land should conform to the overall planning for land use, annual plan for land use and the standards of construction land. Therefore, before the implementation of this subproject, necessary approval for land use should be obtained. NDRC publicized on its website the Announcement No. 23 in September 2006, namely/LVWRIWKH)LIWK%DWFKRIWKH$SSURYHG3URYLQFLDO'HYHORSPHQW =RQHV, in which Wuhe County Economic Development District was listed as the provincial development area. The People’s Government of Anhui Province officially approved Wuhe County Economic Development District as provincial economic area in $SSURYDORIWKH3HRSOH¶V*RYHUQPHQWRI$QKXL 3URYLQFHIRU(VWDEOLVKPHQWRI+HIHL/X\DQJ,QGXVWULDO3DUNDQG2WKHU 3URYLQFLDO'HYHORSPHQW=RQHVvia Ref. WZM[2006]22. The People’s Government of Anhui Province approved WKH*HQHUDO3ODQQLQJRI/DQG8VH RI:XKH&RXQW\ Ref. WZM[2006]13. It is specified in the first paragraph of Article 27 of the *HQHUDO3ODQQLQJ that additional land use index of Mohekou Industrial Zone is 500 hectares and the total area reaches 549.5 hectares. In August 2007, Anhui Land Resources Administration Department approved the right to the use of state-owned land for Mohekou chemical industrial zone.

3. Profile of Land Acquisition for Mohekou Industrial Park and Resettlement Impact

3URILOHRIODQGDFTXLVLWLRQ In order to implement WKH'HYHORSPHQW 3ODQRI%HQJEX)LQH&KHPLFDO,QGXVWU\ and invite the chemical enterprises to enter the Zone, Wuhe Government initiated land collection in Mohekou town from March 2006. Details are shown in the following table. Table 1 Land Acquisition of 1100 mu for Mohekou Industrial Park

SL. Time of LA Quantity Remarks 1 2006.3 40 2 2006.4 60 3 2006.5 80 4 2006.7 110

5 2006.9 600 3 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

6 2006.11 100 7 2006.12 110 Total 1100

1 Compensation

According to the &LUFXODURQ3ULQWLQJDQG,VVXLQJWKH5HYLHZVRQWKH ,VVXHVRI&RPSHQVDWLRQIRU&ROOHFWLYH/DQG$FTXLVLWLRQLQ:XKH&RXQW\ (FRQRPLF'HYHORSPHQW'LVWULFWthe compensation standards for acquisition of rural collective land are: (i) Land compensation charges shall be 6 times of AAOV of the past three years (the annual average production value for the past three years is RMB 1000 /mu), i.e. 6×1000 RMB 6000 /mu; (ii) Resettlement subsidies shall be 10 times of the AAOV of the past three years, i.e. 10×1000RMB 10000 /mu; (iii) Crops compensation: RMB 500 /mu. RMB 1650 /mu in total. Among them, the resettlement subsidies and crops compensation belong to the land contractor, RMB 10500 /mu in total; land compensation belong to the collective organization, i.e. RMB 6000 /mu. The administration committee of the industrial zone has mobilized in place all the land compensation funds for the 1100 mu. Among them, the funds of RMB 10500 /mu compensation payable to the villagers have been paid, and the part of RMB 6000 /mu have been paid to the special accounts of the relevant villages in the land collection center of the County. 2 Approval of the land use

Table 2 Approval Schedule and Progress of Land Acquisition for Mohekou Industrial Park

Time of Submission (Anhui Area Anticipated SL. Land Applied Time of Category Remarks Administration (mu) Approval Dept.)

Agricultural End of First patch 1 June 5, 2007 67.6 land August submission conversion

Agricultural Third End of 2 July 17, 2007 117.8 land patch September conversion submission

Second End of Land 3 June 22, 2007 521.9 patch September exchange submission

4 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Third End of Land 4 August 20, 2007 309.1 patch September exchange submission

Fourth End of Land 5 August 20, 2007 83.6 batch October exchange submission

Notes: 1. The total area of land submitted to Anhui Land Administration Department in 2007 is 1100.0 mu.; 2. The rest planned 6000.0 mu of reserved construction land will be submitted for approval in 2008 and 2009, respectively.

Analysis of Resettlement Impacts: The requisitioned 1100 mu of land have impacts on four villages of Mohekou town, including Tuanjie, Sanpu, Tangchen and Mohe village. Land acquisition affected 472 households and 1958 persons. No house demolition is involved. Table 4 shows the socio-economic indicators of the 48 affected households selected at random from field survey (10% samples), covering elements of number of family members, previous land area, land area requisitioned at that time, rate of losing land, agricultural income, non- agricultural income, total income, proportion of agricultural income in total income, household average per-capita income before and after LA, etc. Based on this survey, the conclusions are:

(1) Average figures among the total rural households: 472 households in total, 5.3 persons on average and 11 mu per household.

(2) Average figures among all affected persons: totally 1958 persons, averagely per-capita 2.1 mu and average annual per-capita RMB 2951.1 / person.

(3) Among all the affected villages, the average proportions of agricultural income in total income are: 54.4% in Tuanjie village; 38.8% in Tangchen village; 52.7% in Sanpu village; 19.6% in Mohekou village.

(4) According to the statistical analysis, among the four villages, the rates of losing land of the four villages are : 42.7% in Tuanjie village; 53.8% in Tangchen village;19.0% in Sanpu village; 47.1% in Mohekou village, respectively. In terms of affected household, each household has lost about 3.6 mu of land on average, indicating 39.3% of rate of land losing per household.

(5) Table 4 is the socio-economic conditions of the 40 sample households selected at 10% of random rate. Among them, there are total of 3 households with 75% - 100% of agricultural income, accounting for 7.5% of the total investigated households, whose rates of land-losing are 40.0%, 12.0% and 14.0%, respectively. There are total of 26 households with 0% - 49% of agricultural income, accounting for 65% of the total investigated households. Based on these figures, it can be seen that, the proportion of those with less than 50% of agricultural income is comparatively higher, 5 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ which indicates that the income sources of the APs are from non-agricultural earnings (small business and migrant labor). In the 4 affected villages, 41% of the labors have been to the southern cities for work (toy factory, garment, mold factory, etc.), with average per-capita income RMB 1200 – 1500 /month. After land acquisition, the rates of land-losing of most villagers are not high, and they may continue their works, or do some small business with the compensated funds, or go to another area for work. In all, due to the non-agricultural source incomes and partial requisition of farmers’ land, the land acquisition will not have great impacts on the income of the local villagers. (6) The results of random sampling (Table 4) survey on average per- capita income after land acquisition indicate that all the APs have restored their income after land acquisition. However, project construction in the future will also require land acquisition, and thus, we have analyzed the persons affected by the acquisition of 1100 mu of land. Among the total 472 households with 1958 persons, there are 609 persons below the age of 16, 1105 persons at the age of 16-55, 50 persons at the age of 55-66 and 194 persons above the age of 60. Among the 1100 mu of requisitioned land, there are 210 persons with 0.3 mu of land requisitioned, accounting for 10% of the total displaced farmers; 22 households with 101 persons whose lands have been fully requisitioned, accounting for 0.5% of the displaced farmers. It is estimated that after land acquisition of 7010 mu ( 5km²)of the first phase, there will be 706 persons with below 0.3 mu while 332 persons will totally lose their land. Facing such situation, the PMO of Wuhe Mohekou Industrial Zone will strictly follow the regulations governing resettlement of displaced farmers that are specified in &LUFXODURI%HQJEX*RYHUQPHQWRQ/DQGOHVV)DUPHUV7UDQVIHUULQJ$JULFXOWXUDO WR1RQDJULFXOWXUDO+RXVHKROG6WDWXVDQG$SSO\LQJIRU6XEVLVWHQFH$OORZDQFHV IRU1HHG\8UEDQ5HVLGHQWV (Ref. MZJ [2004]180), and 3URSRVDOVRI:XKH *RYHUQPHQWRQ5HHPSOR\PHQW7UDLQLQJDQG6RFLDO6HFXULW\IRU'LVSODFHG )DUPHUV (Ref. RMZF [2006]55, enabling them at least to restore to or ever better than the income level and living standards as before land acquisition. Table 3 Analysis of Impacts Caused by Requisition of 1100 mu No. of Existing Affected Land- Existing Persons Land Village affected farmland Households loss households (person.) (mu) persons (mu) (nos) rate

Tuanjie 609 2344 6018 50 482 110 1.8% village Tangchen 611 2072 3624 142 486 361 10.0% village Sanpu 753 2789 8827 160 580 422 4.8% village 120 410 207 Mohekou 966 3759 4009 5.2% village 6 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

village

Total 2939 10964 22478 472 1958 1100

The 22 households who were fully displaced have been covered by the social insurance through “transferring agricultural to non-agricultural household status”. The main labors of these households have received free technical training and are now working in the enterprises nearby Mohekou or MIZ. Their family incomes have exceeded the level before land acquisition.

7 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Table 4 Economic Income Survey on the Households Affected by 1100 mu Land Acquisition

Land (mu) Income Analysis

Family Compensation Non- Proportion Average Per- Average Per- Village Land- Agricultural Total Host Family Previous Land Amount agricultural of capita income capita income loss income Income Member Land Acquisition income Agricultural before land after land rate (RMB) (RMB) (RMB) income acquisition acquisition

Zhu Deqi 6 10 4 40% 42000 5000 8000 13000 38% 2167 2245

Tang 4 5.5 3 54% 31500 2000 20000 22000 8% 5500 5800 Mingwei

Tangchen Ai Decai 6 12 6 50% 63000 6500 8000 14500 45% 2417 2350 village Liu Lanfa 4 8 4.5 56% 47250 3500 13000 16500 21% 4125 4200

Tang 5 10 4 40% 42000 15000 4000 19000 79% 3800 4000 Mingjun

Zheng 4 6 5 83% 52500 3000 4000 7000 42% 1758 1820 Tingkou

Tuanjie Zhang 6 8 5 62% 52500 4000 5000 9000 44% 1500 2200 village Tingya

Peng 8 12 8 66% 84000 7000 15000 22000 31% 2750 3825 Guangming

8 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Land (mu) Income Analysis

Family Compensation Non- Proportion Average Per- Average Per- Village Land- Agricultural Total Host Family Previous Land Amount agricultural of capita income capita income loss income Income Member Land Acquisition income Agricultural before land after land rate (RMB) (RMB) (RMB) income acquisition acquisition

Zhang 6 10 8 80% 84000 5000 10000 15000 33% 2500 3400 Shaohua

Zhang Rui 8 8 6 75% 63000 4000 3000 7000 57% 875 905

Zhang 5 13 8 61% 84000 6000 10000 16000 37% 3200 3200 Feiguang

Shi Xianwei 5 10 1.5 15% 15750 6500 3000 9500 68% 1900 2000

Shi Xianli 4 10 2 20% 21000 6500 2500 9000 72% 2250 2360

Yang Deli 6 9 1.5 16% 15750 6000 4000 10000 60% 1667 1840

Liu Jiayou 7 20 4 20% 42000 12000 10000 22000 54% 3143 3250

Liu Deshi 4 24 3 12% 31500 15000 2000 17000 88% 4250 4500

Sanpu Liu 6 15 2 13% 21000 7000 5000 12000 58% 2000 2250 village chunbao

Liu Jialun 6 20 2 10% 21000 13000 5000 18000 72% 3000 3600

9 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Land (mu) Income Analysis

Family Compensation Non- Proportion Average Per- Average Per- Village Land- Agricultural Total Host Family Previous Land Amount agricultural of capita income capita income loss income Income Member Land Acquisition income Agricultural before land after land rate (RMB) (RMB) (RMB) income acquisition acquisition

Liu 6 20 2 10% 21000 14000 10000 24000 58% 4000 4800 Jiaxiang

Zhang Yu 4 14 1.5 10% 15750 7000 5000 12000 58% 3000 3100

Li 5 12 2 16% 21000 7000 5000 12000 58% 2400 2560 Chengliang

Liu Banglin 4 20 3 15% 31500 10000 14000 24000 41% 6000 6150

Guo 5 10 4 40% 42000 5000 15000 20000 25% 4000 4230 Zeyang

Li Chenghu 4 16 4 25% 42000 8000 15000 23000 34% 5750 5980

Zhao 6 24 4 16% 42000 13000 5000 18000 72% 3000 3120 Tingyue

Zhao 6 24 3.5 14% 36750 13000 4000 17000 76% 2833 2950 Tinglai

Xu Ranjie 5 10 4 40% 42000 4000 10000 14000 28% 2800 2960

Mohekou Zhang 4 4 2 50% 21000 2000 10000 12000 16% 3000 3400 village Gongman

10 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Land (mu) Income Analysis

Family Compensation Non- Proportion Average Per- Average Per- Village Land- Agricultural Total Host Family Previous Land Amount agricultural of capita income capita income loss income Income Member Land Acquisition income Agricultural before land after land rate (RMB) (RMB) (RMB) income acquisition acquisition

Yu Tinghe 4 6 1 16% 10500 3000 10000 13000 23% 3250 3420

Zhu Keyun 6 7.5 2 26% 21000 3500 12000 15500 22% 2583 2780

Chen 5 5.5 2 36% 21000 3000 15000 18000 16% 3600 2710 Zonghai

Chen 5 5.5 2.5 45% 26250 3000 9000 12000 25% 2400 2505 Zonghe

Dong 5 4.5 1 22% 10500 3000 20000 23000 13% 4600 4725 Guode

Lu 5 5.5 0.2 36% 2100 3000 10000 13000 23% 2600 2725 Bingyuan

Lu Binjie 4 4 3 75% 31500 2000 10000 12000 16% 3000 3120

Zhu Shilai 8 8 5 62% 52500 3500 10000 13500 26% 1688 1765

Zhu Kewu 5 10 5 50% 52500 4000 10000 14000 28% 2800 2950

Zhu Kejun 6 8 5 62% 52500 3500 12000 15500 22% 2583 2675

11 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Land (mu) Income Analysis

Family Compensation Non- Proportion Average Per- Average Per- Village Land- Agricultural Total Host Family Previous Land Amount agricultural of capita income capita income loss income Income Member Land Acquisition income Agricultural before land after land rate (RMB) (RMB) (RMB) income acquisition acquisition

Zhou 5 6 4 66% 42000 2000 20000 22000 9% 4400 4860 Youhao

Zhou Youli 5 6 4 66% 42000 2000 10000 12000 16% 2400 2490

12 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

4. Land acquisition policy and compensation standard for Mohekou Industrial Zone

According to/DQG$GPLQLVWUDWLRQ/DZRIWKH3HRSOH¶V5HSXEOLFRI&KLQD /DZRQ8UEDQ5HDO(VWDWH$GPLQLVWUDWLRQRIWKH3HRSOH¶V5HSXEOLFRI&KLQD $GPLQLVWUDWLYH5HJXODWLRQVIRU8UEDQ%XLOGLQJ'HPROLWLRQDQG5HORFDWLRQ 3URYLVLRQVRI$QKXL3URYLQFHRQ0DQDJHPHQWRI8UEDQ%XLOGLQJ'HPROLWLRQDQG 5HORFDWLRQ0HDVXUHVRI$QKXL3URYLQFHRQ6WDWHRZQHG/DQG5HVHUYHas well as 5HYLHZVRQWKH,VVXHVRI&RPSHQVDWLRQIRU&ROOHFWLYH/DQG$FTXLVLWLRQLQ:XKH &RXQW\(FRQRPLF'HYHORSPHQW'LVWULFWRef. WZB[2006]28, compensation standard for the land acquisition in Wuhe County planning area is RMB 34702/mu. Details are shown in Table 5. 

Table 5 Summary of Charges Relating to Land Acquisition of Wuhe County for Construction Use

Cost SL. Name of Charges Remarks (RMB/mu) 1 Land acquisition fee 16500 Individual, collective Management Land Administration 2 820 expenditure (Provincial, city, County) Farmland reclamation Land Administration 3 4002 charges (Provincial, city, County) Funds for water Water Conservancy Bureau 4 500 conservancy (County) Farmland occupation Government finance 5 3502 tax (province, city, County) Land Administration 6 Charges for paid use 9338 (Provincial, city, County) Remeasurement Land Administration 7 40 charges (Provincial, city, County) 8 Total 34702 The standard cost of land acquisition per mu is RMB 16500, which is directly paid to farmers and villages which land is acquired. The standard cost shall not include relevant costs arising from land acquisition. (Including RMB 10500 paid to affected households (64%) and RMB 6000 paid to the village (36%), both of which are used for public welfare).

13 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

In order to strengthen the effective management of the collective compensation funds, Mohekou town of Wuhe County has called two meetings with the participants from the villagers’ committee, displaced households and villagers’ representative to jointly determine the utilization and management of the collective compensation funds.

(1) On June 23, 2006, representatives of the villagers’ committee comprising of Zhu Kewu, Gu Lifang, Xu Honguang, Li Zhongbao and Jiang Wei held a meeting in the office of the committee discussing the management of the compensation funds. After discussion, all participants reached a consensus thereof: on the basis of the consent of the displaced households and villagers, the compensation funds of the collective shall be used to develop the local economy through establishing chemical industrial zone, and thus provide more job opportunities and restore their living as soon as possible.

(2) On June 27, 2006, Zhu Kewu, the representative of the villagers’ committee, organized 52 households for a meeting in the meeting-room of the committee to discuss the use of land compensation funds. Through discussion and ballots, 45 households (87%) agreed to assign 40% of the land compensation funds to the general management of the village collective. These funds shall be invested on the industrial zone on the basis of sharing dividends. In the meeting, a preliminary scheme for construction of the park was formed.

(3) On July 2, 2006, Zhu Kewu, the representative of the villagers’ committee, organized villagers’ representatives for a meeting in the meeting- room of the committee, to discuss the issues of using land compensation of the collective. There were 24 villagers’ representatives present, 4 persons absent. In this meeting, the resolution of investing on chemical industrial zone through using the compensation funds of the collective was approved, and the villagers’ committee was authorized to submit the scheme to the township government for assigning payment.

5. Resettlement scheme for Mohekou Industrial Zone

According to &LUFXODURI%HQJEX*RYHUQPHQWRQ/DQGOHVV)DUPHUV 7UDQVIHUULQJ$JULFXOWXUDOWR1RQDJULFXOWXUDO+RXVHKROG6WDWXVDQG$SSO\LQJIRU 6XEVLVWHQFH$OORZDQFHVIRU1HHG\8UEDQ5HVLGHQWV (Ref. MZJ [2004]180) and 3URSRVDOVRI:XKH*RYHUQPHQWRQ5HHPSOR\PHQW7UDLQLQJDQG6RFLDO6HFXULW\ IRU'LVSODFHG)DUPHUV (Ref. RMZF [2006]55, in addition to the monetary compensation for the permanent land occupation, the following resettlement measures are also taken:

(1) The displaced farmers whose farmland is less than 0.3 mu per capita are eligible to join the social security. Without any additional payment, those

14 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ persons whose age is at 60 for men and 55 for women will get a pension of RMB 80 per month. (2) The MIZ actively arranges displaced farmers to work in the enterprises run by collective economic organization. (3) To establish the venture zone, provide preferential policy and encourage displaced farmers to independently run or jointly run enterprise in the venture zone. (4) Establish the re-employment market. The Sunshine Project of the County’s agricultural commission shall be responsible for providing free train. In this regard, the designated training institutions (such as Humin garments, Shenyang Computer Training Class, Wuhe Technical School) shall offer the training at the expenses of the Sunshine Project Office. All the displaced farmers can receive the re-employment training at their willingness. They will be recommended to work in the nearby industrial zone. In addition, the staff recruited by enterprises will receive job and technical training. (5) With the expansion of the industrial zone, there will be more and more job vacancies to be provided to the people.

Table 6 Status of Resettlement of Affected People

Relevant Persons Resettlement SL. Age Group Government Remarks (person.) measures: Documents Primary & middle 1 Below 16 609 school students State Employment, 2 16-55 1105 Sunshine training Program Employment, 3 55-60 50 subsidies Social 4 Over 60 194 WZ[2006]5 Assurance Total 1958

 As for the 22 households of 101 persons who have completely lost their farmland, the resettlement measures include: (i) RMB 10500 /mu of compensation; (ii) They will be covered by the social security system without

15 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ additional payment, and upon the age of 60 for male and 55 for female, shall get a pension of RMB 80 each month from the coming month; (iii) All of them have been transferred from “agricultural to non-agricultural household status”, and those in living difficulty and satisfying the requirements shall enjoy the MLSS support; (iv) They can enjoy the benefits brought by the collective land compensation (RMB 6000 /mu).

6. Degree of Satisfaction of APs

In order to understand the social and economic results of the compensation and resettlement, the PMO of MIZ has conducted the survey on the satisfaction degree of the displaced individuals according to different age groups and genders. The results of satisfaction survey are shown in Table 7, and the analytical results of the questionnaire are shown in Table 8. According to the survey on the affected villages, groups and individuals, the farmers are satisfied with the resettlement policy. The resettlement has, to some extent, improved the income and employment of the farmers. This survey has interview 40 persons, comprising 83.4% of female and 16.6% of female. As the results: (i) 74.8% of households know about the demolition information through government’s leaflets and announcement, indicating good result of propagandizing and information publicity; (ii) All the APs are satisfied with the in-kind recording and measurement, of whom 43.3% are “very much satisfied” and 56.7 are “satisfied”; (iii) Almost all respondents know the land compensation standards, indicating good effects of policy publicity and high transparency; (iv) All APs are satisfied with the policy enactment, of whom 45.7% are “very much satisfied” and 54.3% are “satisfied”.

In comparison between before and after land acquisition, 59.6% of the respondents hold the view that their living standards are better than before, 41.4% saying that the living standards are almost the same as before land acquisition. As for the satisfaction of living, 75.3% are very much satisfied. All these indicate that land acquisition has little impacts on the living and income levels of the APs.

Table 7 Results of Survey on Resettlement Satisfaction

Means of Resettlement Satisfaction SL. Village Family Host Opinion Remarks (Employment Level training)

16 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Means of Resettlement Satisfaction SL. Village Family Host Opinion Remarks (Employment Level training)

Monetary compensation, further increase 1 Zhu Deqi Satisfied arrangement of salary employment

Monetary Tangchen Tang compensation, further increase 2 Satisfied village Mingwei arrangement of salary employment

Monetary compensation, further increase 3 Ai Decai Satisfied arrangement of salary employment

monetary to be employed 4 Liu Lanfa compensation, Satisfied soonest training

monetary Tang to be employed 5 compensation, Satisfied Mingjun soonest training

Tuanjie village monetary Zheng to be employed 6 compensation, Satisfied Tingkou soonest training

monetary Zhang 7 compensation, Satisfied N/A Tingya training

monetary Peng 8 compensation, Satisfied N/A Guangming training

Monetary

Zhang compensation, further increase 9 Satisfied Shaohua arrangement of salary employment

Monetary compensation, further increase 10 Zhang Rui Satisfied arrangement of salary employment

17 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Means of Resettlement Satisfaction SL. Village Family Host Opinion Remarks (Employment Level training)

Monetary Zhang compensation, further increase 11 Satisfied Feiguang arrangement of salary employment

Monetary compensation, further increase 12 Shi Xianwei Satisfied arrangement of salary employment

monetary further increase 13 Shi Xianli compensation, Satisfied salary training

monetary 14 Yang Deli compensation, Satisfied N/A training

Sanpu village monetary 15 Liu Jiayou compensation, Satisfied N/A training

monetary basically 16 Liu Deshi compensation, N/A satisfied training

monetary 17 Liu chunbao compensation, Satisfied N/A training

monetary

18 Liu Jialun compensation, Satisfied N/A training

monetary

19 Liu Jiaxiang compensation, Satisfied N/A training

monetary 20 Zhang Yu compensation, Satisfied N/A training

18 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Means of Resettlement Satisfaction SL. Village Family Host Opinion Remarks (Employment Level training)

monetary Li 21 compensation, Satisfied N/A Chengliang training

monetary 22 Liu Banglin compensation, Satisfied N/A training

Monetary compensation, further increase 23 Guo Zeyang Satisfied arrangement of salary employment

Monetary compensation, further increase 24 Li Chenghu Satisfied arrangement of salary employment

Monetary Zhao compensation, 25 Satisfied N/A Tingyue arrangement of employment

monetary un- 26 Zhao Tinglai compensation, N/A satisfied training

monetary Mohekou 27 Xu Ranjie compensation, Satisfied N/A village training

monetary Mohekou Zhang 28 compensation, Satisfied N/A village Gongman training

Monetary Mohekou compensation, further increase 29 Yu Tinghe Satisfied village arrangement of salary employment

Monetary Mohekou compensation, 30 Zhu Keyun Satisfied N/A village arrangement of employment

19 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Means of Resettlement Satisfaction SL. Village Family Host Opinion Remarks (Employment Level training)

Monetary Chen compensation, 31 Satisfied N/A Zonghai arrangement of employment

Monetary Chen compensation, further increase 32 Satisfied Zonghe arrangement of salary employment

Monetary

compensation, 33 Dong Guode Satisfied N/A arrangement of employment

Monetary compensation, basically 34 Lu Bingyuan N/A arrangement of satisfied employment

Monetary compensation, further increase 35 Lu Binjie Satisfied arrangement of salary employment

monetary 36 Zhu Shilai compensation, Satisfied N/A training

monetary basically 37 Zhu Kewu compensation, N/A satisfied training

monetary 38 Zhu Kejun compensation, Satisfied N/A training

Monetary Zhou compensation, 39 Satisfied N/A Youhao arrangement of employment

20 %HQJEXÃ,QWHJUDWHGÃ(QYLURQPHQWÃ,PSURYHPHQWÃ3URMHFWÃ)LQDQFHGÃE\ÃWKHÃ:RUOGÃ%DQNÃ

Means of Resettlement Satisfaction SL. Village Family Host Opinion Remarks (Employment Level training)

Monetary compensation, 40 Zhou Youli Satisfied N/A arrangement of employment

Total 40

21

Table 8 Summary of Questionnaire of Resettlement Satisfaction Degree Survey

Results SL. Question Answers

(i) Government propagandizing leaflet, advertisement; (ii) Media such as newspaper, How do you know at TV etc.; (iii) the earliest the Daily talks; (iv) 1 information that 74.8% 6.6% 5.6% 11.1% 1.9% Village your land will be conference or requisitioned? non-official channel; (v) Land measurement by relevant agency.

(i) Very much satisfied; (ii) Are you satisfied Satisfied; (iii) with the in-kind 2 So-so; (iv) Not 43.3% 56.7% 0.0% 0.0% 0.0% recording and satisfied; (v) measurement? Very much un- satisfied.

Do you know about (i) Yes; (ii) 3 the land acquisition Yes, but some; 97.3% 2.7% 0.0% 0.0% 0.0% policy? (iii) No

(i) Very much Are you satisfied satisfied; (ii) with the Satisfied; (iii) 4 resettlement policy So-so; (iv) Not 35.9% 64.1% 0.0% 0.0% 0.0% for this land satisfied; (v) acquisition? Very much un- satisfied.

(i) Very much Are you satisfied satisfied; (ii) with the 5 Satisfied; (iii) 45.7% 54.3% 0.0% 0.0% 0.0% implementation of So-so; (iv) Not these policies? satisfied; (v) Very much un- 22

Results SL. Question Answers

satisfied.

(i) I don’t know the channel; (ii) Ask the village cadre, or ask somebody to During the whole report; (iii) process of Directly report resettlement, what to the 6 kind of means are 0.0% 5.4% 0.0% 0.0% 94.6% government you using for above the expressing your village, or ask ideas? somebody to report; (iv) Report to the media; (v) Report to the IAs.

Have you or your family members 7 (i) Yes; (ii) No 72.8% 27.2% 0.0% 0.0% 0.0% received any technical training?

(i) Very much satisfied; (ii) Are you satisfied Satisfied; (iii) with the existing 8 So-so; (iv) Not 75.3% 24.7% 0.0% 0.0% 0.0% living after land satisfied; (v) acquisition? Very much un- satisfied.

What about the incomes after land (i) Better; (ii) acquisition if More or less 9 59.6% 41.4% 0.0% 0.0% 0.0% compared with the same; (iii) those before land Worse. acquisition?

23

24