Resettlement Planning Document PRC: Anhui Integrated Transport

Resettlement Planning Document

Resettlement Plan Document Stage: Final Project Number: 42018 August 2009

PRC: Anhui Integrated Transport Sector Improvement Project

Prepared by Anhui Highway Administration Bureau.

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

ADB Financed Anhui Integrated Transport Sector Improvement Project

Resettlement Plan for S312 Tianchang Section

(Draft)

Anhui, China May 2009

Letter of Commitment

Through the Ministry of Finance, Anhui Provincial Government (hereinafter called as APG) has applied for a loan from ADB to finance this subproject. Therefore, it must be implemented in compliance with the guidelines and policies of ADB on social security. This Resettlement Plan is in line with a key requirement of ADB and will constitute the basis for land acquisition, house demolition and resettlement of this subproject. The Plan also complies with the laws of the People’s Republic of China and local regulations, as well as with some additional measures and the arrangements for implementation and monitoring for the purpose of achieving better resettlement results.

APG hereby approves the contents of this Resettlement Plan and guarantees that funds will be made available as stipulated in the budget. APG has discussed the draft Resettlement Plan with relevant units that have confirmed their acceptance via Anhui Highway Administration Bureau and Tianchang County, and authorizes the Anhui Project Management Office for ADB Financed Projects as the responsible agency to generally manage the implementation of this subproject and relevant resettlement activities, and the local governments of the affected areas to be responsible for the implementation of this subproject and related resettlement activities within the respective jurisdictions.

Agencies Signature date Anhui Highway Administration Bureau Tianchang Government

Executive Summary

1. Background The S312 Jiangsu Boarder-Tianchang Section Reconstruction Project is one of the subprojects of the ADB financed project – Anhui Integrated Transport Sector Improvement Project. The subproject will further strengthen the traffic and economic link between Tianchang City and Yangzhou City, Nanjing City and even south Jiangsu and the Yangtze River Delta, improve the traffic environment along the route thoroughly and traffic service level, and have great significance in strengthening the traffic link between Tianchang and the towns along the route, especially Qinlan, Renhe and Lulong, and driving the process of urban-rural integration. The land acquisition and resettlement of the subproject involves 9 villages of 3 towns of Tianchang City, including 2 villages in Qinlan Town, 5 in Renhe Town, and 2 in Tianchang Sub-district. The subproject will commence in 2009 and be completed in 2011, and the implementation plan for land acquisition, house demolition, compensation and resettlement will be put into practice in May 2009, and completed by January 2011. The estimated resettlement expenses of the subproject are 48.578million yuan (based on prices of 2008), including basic expenses for land acquisition (occupation) and house demolition, relevant taxes and unexpected expenses, accounting for 18.1% of the whole project budget. 2. Resettlement Impacts The main impacts of the S312 Jiangsu Boarder-Tianchang Section Reconstruction Project are permanent land acquisition, temporary land occupation, demolition of residential houses and relocation of entities. In the subproject, 793.1 mu of collective land will be acquired, including 423 mu of paddy field (57.2%), 203.1 mu of dry land (27.5%), 2 mu of vegetable plots (0.3%), 17 mu of housing sites (2.3%) and 94 mu of other land (12.7%), affecting 5,692 people of 1,383 households directly. 296.05 mu of land will be occupied temporarily, including 127.1 mu of land for borrow pits (42.9%); in terms of land type, this includes 173.43 mu of paddy field (58.6%), 83.26 mu of dry land (28.1%), 0.82 mu of vegetable plots (0.3%) and 38.54 mu of other land (13%), affecting 1,639 people of 404 households for a short term. In the subproject, 4,913m2 of residential houses will be demolished, including 2863m2 (58.3%) in the masonry concrete structure, 2,547m2 in the masonry timber structure (51.8%) and 148m2 in the simple structure (3.0%), affecting 254 people out of 57 households. 4 entities will be relocated, with a total area of 1,170m2, affecting 45 people. In addition, the subproject will also affect some ground annexes, such as tombs, trees and telegraph poles. 3. Policy framework and entitlements To avoid or minimize the negative impacts of land acquisition, the affected villager teams and displaced persons have been consulted on the selection of the relocation sites at the feasibility study stage, and the optimum option has been chosen through comparative selection. This Resettlement Plan has been formulated in accordance with the Land Management Law of the People’s Republic of China (2004), the Decision of the State Council on Deepening Reform and Exercising Strict Land Management (Guo Fa [2004] No.28), the applicable policies of Anhui Province, ADB’s Involuntary Resettlement and policies on social security. The resettlement principles of the subproject are as follows based on the above policies and through consultation with the local governments and the affected people: (1) Involuntary resettlement should be avoided where feasible; (2) The affected people are granted compensation and rights that can at least maintain or

even improve their livelihoods in the absence of the project; (3) The affected people are given compensation and assistance in resettlement whether legal title is available or not; (4) If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities are provided for the lost land; (5) The affected people fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan; (6) No land should be acquired before the affected people are satisfied with the compensation and resettlement (plan); (7) The executing agency and an independent agency / third party should monitor the compensation, relocation and resettlement operations; (8) The vulnerable groups (including women) are provided special assistance or treatment so that they lead a better life, and all affected people should have an opportunity to benefit from the project; (9) The Resettlement Plan is consistent with the master plans of the affected counties and towns; and (10) The resettlement expenses are sufficient to cover all affected aspects. 4. Resettlement strategy The compensation for permanent land acquisition includes land compensation, resettlement subsidy and crop compensation. The average annual output value of paddy field, dry land and vegetable plots of Tianchang – the city affected by land acquisition – in the past 3 years was 1,200 yuan/mu, and that of housing sites and other land 750 yuan/mu, so the compensation multiple is 16, in which the multiple of land compensation is 10, and that of resettlement subsidy 6. Temporary land occupation includes that for borrow pits and other purposes. The compensation standards for temporary land occupation are: single compensation for borrow pits: 12,000 yuan/mu for arable land ,4000 yuan/mu for other land ; other temporary land 4,000 yuan/mu· year. The occupation period will be 2 years. After expiry of the occupation period, the land will be restored by the implementing agencies, with a land restoration fee of 4,000 yuan/mu. Occupation of arable land should be avoided in the temporary land occupation for borrow pits. If this is unavoidable, low-lying land and derelict land with lower output value and likely to be affected by inland inundation should be occupied where possible. After occupation, borrow pits will be restored as the affected people may wish. The compensation standards for the demolition of residential houses are: masonry concrete structure: 410 yuan/m2, masonry timber structure: 260 yuan/m2, simple structure: 80 yuan/m2, relocation fee: 500 yuan/person, and transition fee: 3001 yuan/household · month. The compensation standards for relocation of entities are: masonry concrete structure: 410 yuan/m2, masonry timber structure: 260 yuan/m2, shutdown compensation: 3 yuan/m2, relocation subsidy: 3 yuan/m2·month. The measures for income restoration of the affected people include cash compensation, provision of technical training and priority in employment, etc. Since permanent land acquisition is caused by road construction mainly, the impacts of the subproject are in a linear form. Based on statistical analysis, though the amount of land acquisition is relatively large, it is scattered and has very moderate impact on the regular agricultural production of rural households. According to the different socioeconomic backgrounds of AVs, the use and relocation of land acquisition fees including land compensation and resettlement subsidy which will be determined by village meeting is also different. In general, land compensation and resettlement could

1 It will be compensated based on the factual transitional period, the tentative periods are 4 months

be disbursed to affected households directly, collective villagers or invested by the collectives. The crop compensation will be paid to affected households directly. When they get the compensation, the affected households will use the compensation fees for land improvement and the expanded reproduction of household sidelines. After house demolition, the village collective will plan housing sites in a unified manner or villagers will adjust their housing sites for reconstruction as they wish. The affected entities are affected on a minor degree, and their regular production and operation are not affected, so they are granted cash compensation. The Anhui Project Management Office (PMO) has arranged a special fund of 650,000 yuan for the technical training of the labor force of the affected households (in which the female labor force is about 50%). In the meantime, a special fund will be set up to support the vulnerable groups, with a total amount of 349,000 yuan (1% of the basic resettlement expenses). The Anhui PMO will use this fund specifically to support the vulnerable groups affected by the subproject together with the civil affairs authorities of the affected counties. 5. Public participation and information disclosure All affected people (with 30% being women) have been informed of the key information of the Resettlement Plan in many ways, such as meeting, interview, villager team discussion, public participation meeting and community consultation, and involved in the subproject through the above activities. Their opinions have been taken into account in the Resettlement Plan. The resettlement information booklet and the Resettlement Plan will be distributed to the affected people or villager teams by the end of June 2009 and the draft Resettlement Plan will be published on the ADB website by the end of July 2009. An appeal channel has been established, and all agencies will accept complaints and appeals from the affected people free of charge, and all costs reasonably incurred will be disbursed from the contingency expenses of the subproject. 6. Complaints and appeals An appeal procedure has been formulated to settle disputes over compensation and other resettlement benefits for the purpose of responding to the affected people’s complaints timely and transparently. Possible complaints may arise from the acquisition of collective land, temporary land occupation and house demolition, etc. In this respect, the Anhui Provincial Communications Department (APCD), the highway administration bureaus of all levels and the affected town governments and village committees will coordinate and settle complaints and appeals possibly arising from the resettlement process. The displaced persons may file an appeal for any aspect of resettlement, including compensation standards. 7. Organization The APCD Foreign-funded Project Management Office is the executing agency of the subproject, the Anhui Highway Administration Bureau (AHAB) is an implementing agency of the subproject, and the relevant highway administration bureaus (headquarters) of all levels and town governments will be responsible specifically for the implementation of the Resettlement Plan. 8. Monitoring, evaluation and reporting To ensure the successful implementation of the Resettlement Plan, the subproject will perform internal and external monitoring of the implementation of resettlement. The internal monitoring agency of the subproject is APCD. Internal monitoring will be executed jointly by AHAB and other competent authorities (e.g., land and resources bureau). A monitoring will be submitted to ADB semiannually. The Anhui PMO will entrust an independent monitoring agency to perform external

monitoring and evaluation semiannually. The monitoring and evaluation expenses will be included in the estimate of resettlement expenses. 9. Budget for resettlement expenses Based on prices of December 2008, the total resettlement expenses of the subproject are 48.578 million yuan, including expenses for the acquisition of rural collective land of 12.952 million yuan, accounting for 26.7% of total expenses; compensation for temporary land occupation of 3.783 million yuan, accounting for 7.8%; compensation for demolition of rural residential houses of 2.043 million yuan, accounting for 4.2%; compensation for entities of 420,000 yuan, accounting for 0.9%; compensation for infrastructure and ground annexes of 15.721 million yuan, accounting for 32.4%; and taxes and management fees of 13.659 million yuan, accounting for 28.1%.

Glossary

Affected People affected by project-related changes in use of land, water or person (AP) other natural resources Money of payment in kind to which the people affected are entitled in Compensation order to replace the lost asset, resource or income Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are Entitlement due to affected people, depending on the nature of their losses, to restore their economic and social base Income Reestablishing income sources and livelihoods of people affected restoration Rebuilding housing, assets, including productive land, and public Relocation infrastructure in another location Loss of physical and non-physical assets, including homes, Resettlement communities, productive land, income-earning assets and sources, effect subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms A time-bound action plan with budget setting out resettlement Resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring plan and evaluation Vulnerable Distinct groups of people who might suffer disproportionately from group resettlement effects

Abbreviations

ACTVC - Anhui Communications Vocational & Technical College ADB - Asian Development Bank AHAB - Anhui Highway Administration Bureau APCD - Anhui Provincial Communications Department ACGI - Anhui Provincial Communications Investment Group Company APG - Anhui Provincial Government PMO - Project Management Office RP - Resettlement Plan PRC - People’s Republic of China

Notes

Currency unit - Yuan $1.00 = 7.00 yuan I ha = 15mu

Contents 1 OVERVIEW ...... 1

1.1 BACKGROUND AND DESCRIPTION OF THE SUBPROJECT ...... 1 1.1.1 Background of the subproject ...... 1 1.1.2 Composition of the subproject and identification of displaced persons ...... 1 1.1.3 Summary of resettlement impacts of the subproject...... 3 1.2 SOCIAL AND ECONOMIC BENEFITS ...... 3 1.3 INVESTMENT ESTIMATE AND IMPLEMENTATION PLAN OF RESETTLEMENT ...... 3 2 IMPACTS OF THE SUBPROJECT ...... 4

2.1 MEASURES TO AVOID OR MINIMIZE LAND ACQUISITION AND HOUSE DEMOLITION ...... 4 2.1.1 Principles for design and relocation site selection of the subproject...... 4 2.1.2 Comparative selection of options ...... 4 2.2 RANGE OF SURVEY OF LAND ACQUISITION AND HOUSE DEMOLITION IMPACTS ...... 4 2.3 METHODS AND PROCESS OF SURVEY ...... 5 2.4 PERMANENT ACQUISITION OF COLLECTIVE LAND AND IMPACT ANALYSIS ...... 6 2.4.1 Permanent acquisition of collective land ...... 6 2.4.2 Impact analysis of acquisition of collective land ...... 6 2.5 TEMPORARY LAND OCCUPATION ...... 10 2.6 DEMOLITION OF RESIDENTIAL HOUSES AND IMPACT ANALYSIS ...... 12 2.7 RELOCATION OF ENTITIES AND IMPACT ANALYSIS ...... 12 2.8 AFFECTED INFRASTRUCTURE AND GROUND ANNEXES ...... 13 2.9 AFFECTED POPULATION ...... 14 2.9.1 Summary ...... 14 2.9.2 Affected vulnerable groups ...... 16 2.9.3 Affected women ...... 16 3 SOCIAL AND ECONOMIC CONDITIONS ...... 18

3.1 SOCIAL AND ECONOMIC PROFILE OF AFFECTED AREAS ...... 18 3.1.1 Social and economic profile of affected cities ...... 18 3.1.2 Social and economic profile of affected towns ...... 18 3.1.3 Social and economic profile of affected villages ...... 19 3.2 SOCIAL AND ECONOMIC PROFILE OF AFFECTED POPULATION ...... 20 3.2.1 Basic economic situation of affected population ...... 20 3.2.2 Impacts of the subproject on women ...... 23 4 LEGAL FRAMEWORK AND POLICIES ...... 25

4.1 LAWS, REGULATIONS AND POLICIES APPLICABLE TO RESETTLEMENT ...... 25 4.2 ADB POLICIES ...... 25 4.3 LAWS, REGULATIONS AND POLICIES OF THE PRC ...... 27 4.4 MAIN DIFFERENCES BETWEEN ADB POLICIES AND LAWS OF THE PRC ...... 32 4.5 PRINCIPLES FOR COMPENSATION OF THE SUBPROJECT ...... 33 4.6 CUT-OFF DATE OF COMPENSATION ...... 33 4.7 DETERMINATION OF COMPENSATION STANDARDS FOR RESETTLEMENT IMPACTS OF THE SUBPROJECT ...... 33 4.7.1 Acquisition of collective land ...... 33 4.7.2 Compensation for temporary land occupation ...... 34 4.7.3 Compensation standards for house demolition ...... 34 4.7.4 Compensation for annexes and infrastructure ...... 35 4.7.5 Standards for other costs ...... 36 4.7.6 Vulnerable groups ...... 36 4.7.7 . Special measures for women ...... 36 4.8 ENTITLEMENT MATRIX ...... 37 5 RESETTLEMENT AND INCOME RESTORATION ...... 41

5.1 PURPOSE OF RESETTLEMENT ...... 41 5.2 RESETTLEMENT AND RESTORATION SCHEME FOR AFFECTED VILLAGES ...... 41 5.2.1 Introduction of resettlement and restoration scheme for affected villages ...... 41 5.2.2 General strategy of restoration measures for permanent land acquisition ...... 41

5.2.3 General strategy and measures for demolition of residential houses ...... 42 5.2.4 Resettlement and restoration scheme for key villages ...... 43 5.3 RESETTLEMENT SCHEME FOR ENTITIES ...... 46 5.4 TRAINING FOR DISPLACED PERSONS ...... 47 5.5 PROTECTION OF WOMEN’S RIGHTS AND INTERESTS ...... 47 5.6 ASSISTANCE MEASURES FOR VULNERABLE GROUPS ...... 48 5.6.1 Measures for Disable ...... 48 5.6.2 Measures for low-income or poor households ...... 48 5.6.3 Measures for seriously affected households ...... 48 5.7 RESTORATION SCHEMES FOR TEMPORARILY OCCUPIED LAND ...... 48 5.7.1 Restoration scheme for land occupation for borrow pits ...... 49 5.7.2 Other restoration schemes for temporarily occupied land ...... 49 5.8 RESTORATION SCHEME FOR INFRASTRUCTURE ...... 49 6 RESETTLEMENT ORGANIZATION ...... 51

6.1 MANAGEMENT AGENCIES FOR RESETTLEMENT IMPLEMENTATION ...... 51 6.1.1 Organizational setup ...... 51 6.1.2 Responsibilities of agencies ...... 51 6.2 STAFFING AND FACILITIES ...... 53 6.2.1 Staffing ...... 53 6.2.2 Facilities ...... 53 6.2.3 Institutional training program ...... 53 7 PUBLIC PARTICIPATION, COMPLAINTS AND APPEALS ...... 55

7.1 PUBLIC PARTICIPATION ...... 55 7.1.1 Participation at the preparation stage ...... 55 7.1.2 Participation plan for the implementation stage ...... 56 7.2 COMPLAINTS AND APPEALS ...... 57 8 RESETTLEMENT BUDGET ...... 58

8.1 RESETTLEMENT BUDGET...... 58 8.2 RESETTLEMENT INVESTMENT PLAN AND SOURCES OF FUNDS ...... 59 8.3 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS ...... 59 9 RESETTLEMENT IMPLEMENTATION PLAN ...... 60

9.1 PRINCIPLES FOR RESETTLEMENT IMPLEMENTATION ...... 60 9.2 SCHEDULE FOR RESETTLEMENT IMPLEMENTATION ...... 60 10 MONITORING AND EVALUATION ...... 62

10.1 INTERNAL MONITORING ...... 62 10.2 EXTERNAL MONITORING ...... 63 10.2.1 Scope and methods of external monitoring ...... 63 10.2.2 External monitoring reporting ...... 64 10.3 POST-RESETTLEMENT EVALUATION ...... 64 APPENDIXES ...... 65

APPENDIX 1: SCHEMATIC MAP OF THE SUBPROJECT ...... 65 APPENDIX 2: PUBLIC PARTICIPATION AND MINUTES ...... 66 APPENDIX 3: GENDER ANALYSIS OF AFFECTED AREAS ...... 67 APPENDIX 4:DISTRIBUTION STRUCTURE SAMPLING SURVEY ...... 69 APPENDIX 5: SOCIAL AND ECONOMIC INFORMATION OF AFFECTED TOWNS ...... 69 APPENDIX 6: POLICIES ON ENDOWMENT INSURANCE OF FARMERS DEPRIVED OF LAND ...... 70 APPENDIX 7 DETAILED RESETTLEMENT BUDGET ...... 78 APPENDIX 8 :RESETTLEMENT INFORMATION BOOKLET ...... 81

List of Tables TABLE 2-1 OPTIONS FOR COMPARATIVE SELECTION OF THE SUBPROJECT ...... 4 TABLE 2-2 ADMINISTRATIVE DIVISIONS AFFECTED BY RESETTLEMENT ...... 5 TABLE 2-3 SUMMARY OF COLLECTIVE LAND TO BE PERMANENTLY ACQUIRED...... 6 TABLE 2-4 IMPACT ANALYSIS OF ACQUISITION OF COLLECTIVE LAND ...... 8 TABLE 2-5 PROPORTIONS OF LOSS OF LAND OF AFFECTED HOUSEHOLDS ...... 8 TABLE 2-6 DEGREES OF LOSS OF ARABLE LAND OF AFFECTED HOUSEHOLDS ...... 9 TABLE 2-7 RESTORATION SCHEME FOR HOUSEHOLDS AFFECTED BY LAND ACQUISITION ...... 10 TABLE 2-8 SUMMARY OF TEMPORARY LAND OCCUPATION ...... 11 TABLE 2-9 SUMMARY OF RURAL RESIDENTIAL HOUSES AFFECTED BY DEMOLITION ...... 12 TABLE 2-10 DEGREES OF IMPACT OF DEMOLITION OF RESIDENTIAL HOUSES ...... 12 TABLE 2-11 SUMMARY OF ENTITIES AFFECTED BY DEMOLITION ...... 13 TABLE 2-12 AFFECTED GROUND ANNEXES ...... 13 TABLE 2-13 SUMMARY OF AFFECTED POPULATION ...... 15 TABLE 2-14 SUMMARY OF VULNERABLE GROUPS ...... 16 TABLE 3-1 SOCIAL AND ECONOMIC CONDITIONS OF TIANCHANG CITY ...... 18 TABLE 3-2 SOCIAL AND ECONOMIC PROFILE OF AFFECTED VILLAGES ...... 19 TABLE 3-3ANALYSIS OF HOUSEHOLD INCOME AND EXPENDITURE ...... 22 TABLE 3-4 PUBLIC OPINION SURVEY ...... 22 TABLE 4-1 ABSTRACT OF LAND MANAGEMENT LAW AND RELEVANT POLICIES ...... 28 TABLE 4-2 MAIN PROVISIONS OF GUO FA [2004] NO.28 AND MLR FA [2004] NO.238 AND APPLICATION ...... 30 TABLE 4-3 PRINCIPLES FOR RESETTLEMENT OF THE SUBPROJECT ...... 33 TABLE 4-4 COMPENSATION MULTIPLES AND STANDARDS FOR COLLECTIVE LAND ACQUISITION ...... 34 TABLE 4-5 COMPENSATION STANDARDS FOR TEMPORARY LAND OCCUPATION ...... 34 TABLE 4-6 COMPENSATION STANDARDS FOR RURAL RESIDENTIAL HOUSES AND ANNEXES ...... 35 TABLE 4-7 COMPENSATION STANDARDS FOR DEMOLITION OF HOUSES AND ANNEXES OF ENTITIES .. 35 TABLE 4-8 COMPENSATION STANDARDS FOR ANNEXES AND INFRASTRUCTURE ...... 35 TABLE 4-9 TAX STANDARDS FOR RESETTLEMENT OF THE SUBPROJECT ...... 36 TABLE 4-10 ENTITLEMENT MATRIX...... 38 TABLE 5-1 WILLINGNESS FOR DEMOLITION OF RESIDENTIAL HOUSES AND RESETTLEMENT OF RURAL RESIDENTS ...... 43 TABLE 5-2 SUMMARY OF MODES OF RESETTLEMENT OF AFFECTED ENTITIES ...... 46 TABLE 5-3 TECHNICAL TRAINING PROGRAM FOR DISPLACED PERSONS ...... 47 TABLE 6-1 STAFFING OF RESETTLEMENT AGENCIES ...... 53 TABLE 7-1 PUBLIC PARTICIPATION AT THE PREPARATION STAGE ...... 55 TABLE 7-2 PUBLIC PARTICIPATION PROGRAM OF THE SUBPROJECT ...... 56 TABLE 8-1 BUDGET OF RESETTLEMENT EXPENSES ...... 58 TABLE 8-2 RESETTLEMENT INVESTMENT PLAN OF THE SUBPROJECT ...... 59 TABLE 9-1IMPLEMENTATION SCHEDULE OF RESETTLEMENT ...... 60 TABLE 10-1 PROGRESS REPORT OF LAND ACQUISITION, HOUSE DEMOLITION AND RESETTLEMENT . 62 TABLE 10-2 IMPLEMENTATION SCHEDULE OF FUND USE ...... 63 TABLE 10-3 SCHEDULE OF RESETTLEMENT MONITORING AND EVALUATION ...... 64

List of Figures FIGURE 3-1 AGE DISTRIBUTION STRUCTURE ...... 20 FIGURE 3-2 EDUCATION DISTRIBUTION STRUCTURE ...... 21 FIGURE 5-1 RESIDENTIAL HOUSES TO BE DEMOLISHED ...... 44

1 Overview

1.1 Background and description of the subproject

1.1.1 Background of the subproject

Since the beginning of the Tenth Five-year Plan, Anhui Province has realized a rapid growth of traffic infrastructure by increasing investment and accelerating construction under the direction and support of the state macro-policies. An integrated traffic system composed mainly of trunk railway lines, expressways, main navigable channels and key airports has taken form. In particular, as the key link between the expressway network and the rural highway network, the national and provincial trunk highway network of the province plays an important role in creating a multi-layered, efficient highway transport system. However, this trunk highway network can hardly meet future transport demand due to its irrational hierarchical structure, relatively low technical standard of highways, and relatively low equivalent mileage. Therefore, it is necessary to improve the existing trunk highway network to improve its throughput greatly, realize the intensive utilization of land resources, and give full play to the service efficiency of the existing traffic resources at the cost of relatively small land occupation. At the present stage, various restrictive conflicts in highway development have emerged, and there is a great pressure in funding and a sharp conflict between the demand for huge funds and the increasingly tensioned financial environment. In order to relieve the financial pressure and make reasonable use of funds to build the trunk highway network, AHAB decided to use ADB lending to rebuild and expand some trunk highways in the province in 2008, of which the reconstruction project of the S312 Jiangsu Boarder-Tianchang Section is part.

1.1.2 Composition of the subproject and identification of displaced persons

The S312 Jiangsu Boarder-Tianchang Section starts from the Anhui-Jiangsu border in the east, runs through Qinlan Town, Renhe Town and Lulong Town, and ends at the suburb of Tianchang City, with a mileage of about 15.64km. The whole section will be built as a 4-lane Grade A highway with a design speed of 80km/hour and a roadbed width of 24.5 meters. The subproject is located in Tianchang City, Anhui. Based on a preliminary impact identification, the resettlement impacts of the subproject will include land acquisition and house demolition. The scope of road network construction and the resettlement impacts of the subproject are shown in Table 1-1.

Table 1-1 Identification of Scope of Construction and Resettlement Impacts Present situation After construction Starting and Mileage Road Road Town along No. Road code ending pile Surface Surface Main resettlement impact (km) Grade bed Grade bed the route No. (m) (m) (m) (m) Permanent acquisition of 19 mu of land, affecting K0+,000 194 people out of 43 households; demolition of 1 2.7 B 14 12 A 24.5 21 Qinlan Town -K2+700 828m2 houses, affecting 14 people out of 2 households Permanent acquisition of 378 mu of land, affecting S312 Jiangsu K2+700 2,271 people out of 559 households; demolition of 2 Boarder-Tianchang 10.1 B 14 12 A 24.5 21 Renhe Town -K12+800 2 Section 3,225m houses, affecting 117 people out of 27 households Permanent acquisition of 342 mu of land, affecting K12+800 Tianchang 2,994 people out of 739 households; demolition of 3 2.84 B 14 12 A 24.5 7 -K15+640 Sub-district 860m2 houses, affecting 123 people out of 28 households

1.1.3 Summary of resettlement impacts of the subproject

The resettlement impacts of the subproject mainly include permanent and temporary land occupation, the demolition of rural residential houses and the relocation of entities, involving 9 administrative villages in 3 towns of Tianchang City. 739.1 mu of collective land will be acquired, including 626.1 mu of arable land, affecting 5,881 people out of 1,352 households; 296.05 mu of collective land will be occupied temporarily, including 256.69 mu of arable land, affecting 1,639 people out of 404 households for a short term; 4,913m2 of residential houses will be demolished, affecting 254 people out of 57 households; 4 entities will be relocated, with a total area of 1,170m2, affecting 45 people; 22 types of infrastructure and ground annexes will be affected.

1.2 Social and economic benefits

The social and economic benefits of the subproject are as follows: 1. The subproject will further strengthen the traffic and economic link between Tianchang City and Yangzhou City, Nanjing City and even south Jiangsu and the Yangtze River Delta, further promote the development of the export-oriented economy of Tianchang City, strengthen the development and opening of the city, promote regional economic integration, and carry through the strategy of rise of central China of the Central CPC Committee and the State Council, and the eastward development strategy of Anhui Province. 2. The subproject is a component of S312, the most convenient inter-province traffic link between Tianchang and Yangzhou, and the traffic artery from the urban area of Tianchang and the nearby towns to Yangzhou; in the meantime, the subproject also provides a traffic link among the urban area of Tianchang, Lulong Town, Renhe Town and Qinlan Town, and serves as an urban road. The subproject will improve the traffic environment along the route thoroughly and traffic service level, and meet the urgent demand for rapid traffic growth along the route. 3. The subproject has great significance in strengthening the traffic link between Tianchang and the towns along the route, especially Qinlan, Renhe and Lulong, and driving the process of urban-rural integration. In addition, Qinlan Town is the demonstration zone of private economy of Tianchang City, a demonstration zone of private hi-tech enterprises and a pilot town of the comprehensive small town reform of Anhui Province. The subproject has great significance in driving the development of the towns along the route, guiding the orderly transfer of surplus labor to non-agricultural industries, and increasing farmers’ income from labor services, and is an important measure in response to “building a new socialist countryside”.

1.3 Investment estimate and implementation plan of resettlement

The construction investment in the subproject is about 268 million yuan, which will be raised from the following 3 sources: ADB lending, domestic bank lending and funds raised by the employer. The resettlement expenses are 48.578 million yuan, accounting for 18.1% of total investment, all being domestic counterpart funds. The overall construction period of the subproject is 2 years. In conformity with the construction period, the Resettlement Implementation Plan will be implemented from the end of 2009 to 2011.

2 Impacts of the Subproject

2.1 Measures to avoid or minimize land acquisition and house demolition

2.1.1 Principles for design and relocation site selection of the subproject

Land acquisition and house demolition will be minimized at the construction stage on the following principles:  Avoiding or minimizing the occupation of existing and planned residential areas;  Avoiding or minimizing the occupation of high-quality arable land;  Utilizing existing national and local roads to lead to the proposed construction area; and  Avoiding or minimizing the occupation of environmentally sensitive zones.  Involve affected people in detailed design of alignment and passageways and selection of borrow pits to minimize resettlement impacts.

2.1.2 Comparative selection of options

During the design of the subproject, the negative impacts of construction, especially the number of displaced persons, have been minimized by making field investigation of the affected areas repeatedly and optimizing the project design on the precondition of realizing the intended results. Therefore, the amount of land acquisition and house demolition has been minimized, as shown in Table 2-1. In addition, during the detailed design stage, the measures to avoid or minimize land acquisition and house demolition will be further optimized through further consultation with affected people.

Table 2-1 Options for Comparative Selection of the Subproject Project Option 1 Option 2 (recommendation) Conclusion The demolition area of The road runs through The road is rerouted to the residential houses has Renhe Town, where there outside of Renhe Town, been reduced by 22,311m2, S312 are dense houses on both reducing the demolition and the affected population sides, representing a high amount. by 160 people out of 43 demolition amount. households.

2.2 Range of survey of land acquisition and house demolition impacts

According to the recommended option, the resettlement impacts of the subproject involve 9 administrative villages and communities in 3 towns of one city. The scope of survey of the impacts of the subproject is shown in Table 2.2.

Table 2-2 Administrative Divisions Affected by Resettlement Cit Village/ neighborhood Road Code Pile No. Town y committee K0+,000 -K2+700 Qinlan Town Shouchang Village, Qinlan Tianchang Baima Village, Renhe S312 Jiangsu Community, Zhanggu Village, K2+700 -K12+800 Renhe Town Boarder-Tianchang Wuzhuang Village, Lulong Section Community Tianchang Shuguang Community, K12+800 -K15+640 Sub-district Guangning Village

2.3 Methods and process of survey

In November 2008, the Anhui Provincial Construction Department entrusted the Anhui Highway Design Institute to prepare the Proposal for the ADB Financed Anhui Integrated Transport Sector Improvement Project, which was approved by the Anhui Development and Reform Commission. During August-November 2008, the engineering technicians of the Anhui Provincial Communications Planning, Survey and Design Institute conducted a survey of the affected physical indicators in the affected areas with the assistance of the affected villages and villagers as required by ADB to learn the resettlement impacts of the subproject. In November 2008, the Anhui Transport Administration Bureau entrusted the Anhui Highway Design Institute to prepare the Feasibility Study Report of the S312 Project, which is expected to be approved in July 2009. From December 2008 to March 2009, the resettlement survey team of ACTVC and Hohai University conducted a sampling survey of the social and economic conditions of the affected areas and the rural households (227) affected by land acquisition and house demolition according to the feasibility study report. The survey covered household population, impacts of land acquisition and house demolition, household economic condition and willingness for resettlement, etc. During the survey, the survey team also listened to the opinions of the village committees and the villagers about land acquisition, house demolition and resettlement, and conducted extensive consultation. In March 2009, on the basis of the feasibility study and survey data of the subproject and public participation, the Resettlement Plan of the subproject was completed, which analyzes and evaluates the resettlement impacts and risks of the subproject, and proposes preliminary remedies. This Resettlement Plan will be updated on the basis of completion of the detailed design. The resettlement will be implemented referenced to updated RP. During the survey, the survey team also listened to the opinions of the village committees and the villagers about land acquisition, house demolition and resettlement, and conducted extensive consultation. The main findings were as follows: 1) Almost all affected rural households welcome the project and know the project will be commenced soon. 2) Almost all affected households thought the impacts of land acquisition to them were slight. After land acquisition, they could cultivate the remaining land and prefer to cash compensation, 3) The compensation should be disbursed in time and transparently and intermediate links should be minimized as much as possible; 4) To house demolition, it should be implemented after the arrangement of house relocating site and compensation disbursement.

2.4 Permanent acquisition of collective land and impact analysis

2.4.1 Permanent acquisition of collective land

The subproject will acquire 793.1 mu of collective land, including 423 mu of paddy field (57.2%), 203.1 mu of dry land (27.5%), 2 mu of vegetable plots (0.3%), 17 mu of housing sites (2.3%) and 94 mu of other land (12.7%), affecting 5,459 people out of 1,341 households. The acquisition of collective land is shown in Table 2-3.

Table 2-3 Summary of Collective Land to Be Permanently Acquired Affected Permanent acquisition (mu) 2population City Pile No. Town Village Paddy Dry Housing Vegetable Househ Populati Other3 Subtotal T field land sites plots olds on ianchang Shouchang 5 3 8 11 59 K0+,000 Qinlan Village -K2+700 Town Qingzhu 7 4 11 32 135 Village Zhanggu 90 70 160 390 1,589 Village Lulong 28 10.5 38.5 23 121 Community K2+700 Renhe Renhe 71 24 5 5 105 105 395 -K12+800 Town Community Wuzhuang 39 23 1 10.5 73.5 39 157 Village Baima 1 1 2 9 Village Shuguang 140 70 4 8.5 222.5 439 1,734 K12+800 Tianchang Community -K15+640 Sub-district Guangning 50 67.57 2 0 119.568 300 1,260 Village Total 423 203.1 17 2 94 739.1 1,341 5,459 Proportion 57.2% 27.5% 2.3% 0.3% 12.7% 100.0%

2.4.2 Impact analysis of acquisition of collective land

According to the statistics, the villages affected by the subproject have 39,303 mu of arable land in total, and 626.1 mu of arable land will be acquired in the subproject, accounting for 1.6%. Since the subproject involves road reconstruction in a linear distribution, most of the people affected by land acquisition will lose part of their land only. A comparative analysis of the arable land of the affected villages before and after land acquisition has been made according to the social and economic survey. Among the 9 affected villages, the proportion of impact ranges from 0.02% (Baima Village) to 3.5% (Shuguang Community). The arable land is affected by land acquisition to a very low extent. The affected areas are hilly areas with small-area arable plots ranging form 0.9 mu to 1.5 mu, which is adverse to mechanized farming. The main crops are paddy rice and wheat. In terms of income loss, the per capita loss ranges from 375.2 yuan to 46.67 yuan. The analysis of the villages affected by land acquisition is shown in Table 2-4.

2 It was estimated by the cadre of affected villages during the surveys 3 It refers to path through fields, flood land, wasteland, etc.

According to the survey and estimate, among the 5,459 people out of 1,341 households affected by land acquisition, 4,820 people out of 1,248 households will lose 0-9% of their land, 639 people out of 93 households will lose 10%-19%, and no household has a loss rate of over 20%. Among the 1,248 households with a land loss rate 0-9%, 34 households (2.7%) have 1-3 mu of arable land on hand, 371 households (29.7%) have 3-5 mu, and 843 households (67.5%) have over 5 mu; among the 93 households with a land loss rate of 10%-19%, 3 households (3.2%) have 1-3 mu of arable land on hand, 46 households (49.5%) have 3-5 mu, and 44 households (47.3%) have over 5 mu. The analysis of the degree of impact of the households affected by land acquisition is shown in Table 2-5 and Table 2-6. The affected crops are mainly paddy rice and wheat. Since Tianchang is located in hilly areas where arable land has a relatively high gradient, is uneven and adverse to mechanized farming, the income from crop cultivation is low, with a per mu net income of about 500 yuan, and the proportion of agricultural income to gross income is low. Tianchang is a production base of meters, cables, electronic components and toys, and a petroleum producing area of China. In 2008, the number of industrial enterprises was 212, and industry has become a pillar industry of Tianchang. The industrial enterprises along S312 have absorbed a lot of labor. Above 80% of the income of the villagers along the route comes from working at these enterprises. In sum, the land acquisition of the subproject has little impact on the regular agricultural production and agricultural income of the rural households, and also on the gross income of the farmers.

Table 2-4 Impact Analysis of Acquisition of Collective Land Before acquisition Impact of acquisition Proportion affected Income loss (yuan) % of Proportion Proportion Total Arable Affected Arable Proportion Average Per total Pile No. Town Village Total Affected of of Annual house- land house land of house- loss per capita income population population population acquisition loss holds (mu) holds (mu) holds (%) household loss of per (%) (%) capita Shouchang 1,596 5,206 230 11 59 5 0.70% 1.10% 2.20% 4,750 431.82 80.51 1.3% K0+,000 Qinlan Village -K2+700 Town Qingzhu 930 3,793 6,282 32 135 7 3.40% 3.60% 0.10% 6,300 196.88 46.67 0.4% Village Zhanggu 477 1,842 3,334 390 1,589 90 81.80% 86.30% 2.70% 85,500 219.23 53.81 0.6% Village Lulong 1,386 4,842 6,915.50 23 121 38.5 1.70% 2.50% 0.60% 36,575 1590.2 302.3 5.8% Community K2+700 Renhe Renhe 1,232 3,768 2,470 105 395 95 8.50% 10.50% 3.80% 90,250 859.52 228.5 5.0% -K12+800 Town Community Wuzhuang 499 1,891 3,038 39 157 62 7.80% 8.30% 2.00% 58,900 1510.3 375.2 5.6% Village Baima 758 2,933 5,617 2 9 1 0.30% 0.30% 0.02% 950 475 105.6 2.0% Village Shuguang 1,367 4,823 5,994 439 1,734 210 32.10% 36.00% 3.50% 199,500 454.44 115.1 2.1% K12+800 Tianchang Community -K15+640 Sub-district Guangning 767 3,264 5,004 300 1,260 117.6 39.10% 38.60% 2.40% 111,720 372.4 88.67 1.9% Village Total 9,012 32,362 38,885 1,341 5,459 626.1 14.90% 16.90% 1.60% / / / /

Table 2-5 Proportions of Loss of Land of Affected Households Land loss Total Pile No. City Town Village 0-9% 10%-19% 20%-49% 50-79% 80%-99% 100%

Households Population Households Population Households Population Households Population Households Population Households Population Households Population T Q ianchang inlan To inlan Shouchang 11 59 0 0 0 0 0 0 0 0 0 0 11 59 K0+,000 Village -K2+700

w Qingzhu Village 32 135 0 0 0 0 0 0 0 0 0 0 32 135 R enhe Town Baima Village 2 9 0 0 0 0 0 0 0 0 0 0 2 9 Zhanggu 370 1,321 20 268 0 0 0 0 0 0 0 0 390 1,589 Village K2+700 Renhe 105 395 0 0 0 0 0 0 0 0 0 0 105 395 -K12+800 Community Wuzhuang 39 157 0 0 0 0 0 0 0 0 0 0 39 157 Village Lulong 5 23 18 98 0 0 0 0 0 0 0 0 23 121 Community

Land loss Total Pile No. City Town Village 0-9% 10%-19% 20%-49% 50-79% 80%-99% 100%

Households Population Households Population Households Population Households Population Households Population Households Population Households Population S T ianchang ianchang ub-district ub-district Shuguang 439 1,734 0 0 0 0 0 0 0 0 0 0 439 1,734 Community K12+800 -K15+640 Guangning 245 987 55 273 0 0 0 0 0 0 0 0 300 1,260 Village

Total 1,248 4,820 93 639 0 0 0 0 0 0 0 0 1,341 5,459

Table 2-6 Degrees of Loss of Arable Land of Affected Households Degree of loss Households Existing arable land <10% 10-19% 20-49% 50-79% 80-99% 100% Subtotal <1 mu 0 0 0 0 0 32 1-3 mu 34 3 0 0 0 0 5 3-5 mu 371 46 0 0 0 0 417 >5 mu 843 44 0 0 0 0 887 Total 1,248 93 0 0 0 0 1,341

According to the field survey, the households affected by land acquisition have the following willingness for resettlement: a) Use land compensation fees to transform small fields adverse to mechanized farming into big fields, chosen by 560 households, accounting for 92.3% of all households affected by land acquisition; b) Readjust the structure of crop cultivation from one focused on cereal crops with low economic efficiency, such as paddy rice and wheat, into one focused on crops with higher economic efficiency, such as vegetables and sweet potato, chosen by 142 households, accounting for 23.4%; c) Invest land compensation fees in tertiary industry businesses, such as catering, general merchandise and repair, to increase economic income, chosen by 32 households, accounting for 5.3%; and d) Use land compensation fees for skills learning and training, and to look for job opportunities from the outside, chosen by 607 households, accounting for 45.3%. The restoration scheme for the impacts of land acquisition is shown in Table 2-7.

Table 2-7 Restoration Scheme for Households Affected by Land Acquisition Cash Restoration plan (households) Proportion Household compensation Restructurin Tertiary Skills Farmland of land loss s (per g of crop industry training, improvement household) cultivation businesses employment <10% 1,248 1,248 539 128 24 557 11- 20% 93 93 21 14 8 50 21 -50% 0 0 0 0 0 0 51-80% 0 0 0 0 0 0 81-99% 0 0 0 0 0 0 100% 0 0 0 0 0 0 Total 1,341 1,341 560 142 32 607 Proportion 92.3% 23.4% 5.3% 45.3%

2.5 Temporary land occupation

Temporary land use for construction means land occupied temporarily during the construction period, including sand and stone yards, borrow pits, blending plants, spoil grounds, and production, living areas and roads occupied temporarily during construction. All land occupied temporarily by the subproject is collective land, with a total area of 296.05 mu, affecting 1,639 people out of 404 households, including 127.1 mu of land for borrow pits (42.9%), affecting 736 people out of 181 households. In terms of land type, this includes 173.43 mu of paddy field (58.6%), 83.26 mu of dry land (28.1%), 0.82 mu of vegetable plots (0.3%) and 38.54 mu of other land (13%). The average period of temporary occupation is 2 years. The impacts of temporary land occupation are shown in Table 2-8.In all land occupied temporarily by the subproject, borrow pits will occupy 127.1 mu of land (42.9%). Borrow pits will be located in mountain land or unused land where possible to avoid any adverse impact on rural households. If occupation of arable land is unavoidable, the following principals would be taken: (i) avoid creating unusable land and adverse environmental impacts, (ii) the selection of sites for burrow areas and spoil areas should include consultation with affected villages and should be in accordance with the township/ villages master plans, land use plans and the new countryside construction plans; (iii) the sites should be concentrated and the impact on arable land should be minimized; (iv) Where possible, site should be selected in low-lying land with bad soil quality; (v) According to the wills of local people, local geographical conditions and environmental regulations, the deep excavations could be restored as part of the local canal system, fishponds, farmland or landfill through different construction methods.

Table 2-8 Summary of Temporary Land Occupation Land occupied temporarily for borrow pits (mu) Other land occupied temporarily (mu) Affected Affected Total4 City Pile No. Town Village Paddy Dry Vegetable population Paddy Dry Vegetable population Other Subtotal Other Subtotal field land plot Househ field land plot Househ House People People Mu People T olds olds holds ianchang Shouchang 0.9 0 0 0 0.9 1 8 1.1 0 0 0 1.1 2 10 2.1 3 18 K0+,000 Qinlan Village -K2+700 Town Qingzhu 0 1.1 0 0 1.1 4 18 0 1.72 0 0 1.7 6 23 2.9 10 41 Village Zhanggu 16.6 0 0 11.48 28.1 53 215 20.3 0 0 17.22 37.5 64 262 65.6 117 477 Village Lulong 5.2 1.7 0 0 6.9 3 16 6.3 2.58 0 0 8.9 4 20 15.8 7 36 Community K2+700 Renhe Renhe 13.1 3.9 0 0.82 17.9 14 54 16 5.9 0 1.23 23.1 18 65 41 32 119 -K12+800 Town Community Wuzhuang 7.2 3.8 0 1.72 12.7 5 21 8.8 5.66 0 2.58 17 7 26 29.7 12 47 Village Baima 0 0.2 0 0 0.2 0 0 0 0.25 0 0 0.2 1 3 0.4 1 3 Village Shuguang 25.8 11.5 0 1.39 38.7 59 234 31.6 17.22 0 2.09 50.9 73 286 89.6 132 520 K12+800 Tianchang Community -K15+640 Sub-district Guangning 9.2 11.1 0.33 0 20.6 40 170 11.3 16.62 0.49 0 28.4 50 208 49 90 378 Village Total 78 33.3 0.33 15.42 127.1 181 736 95.4 49.95 0.49 23.12 169 223 903 296 404 1639 Proportion (%) 26.40 11.20 0.10 5.20 42.90 44.75 44.92 32.20 16.90 0.20 7.80 57.10 55.25 55.08 100 100 100

4 It was estimated by village cadre during the field surveys

2.6 Demolition of residential houses and impact analysis

All residential houses demolished in the subproject are rural residential houses. 4,913m2 of residential houses will be demolished, including 2863m2 (58.3%) in the masonry concrete structure, 2,547m2 in the masonry timber structure (51.8%) and 148m2 in the simple structure (3.0%), affecting 254 people out of 57 households, of which 59 people out of 15 households are also affected by land acquisition. The residential houses to be demolished in the subproject are shown in Table 2-9.

Table 2-9 Summary of Rural Residential Houses Affected by Demolition Population also 2 Affected House demolition (m ) affected by land population Pile No. Town Village acquisition Masonry Masonry Househ Populati Househo Populati Simple Subtotal concrete timber olds on lds on K0+,000 Zhuchang Qinlan Town 828 0 0 828 2 14 2 7 -K2+700 Village Wuzhuang 0 62 68 130 3 12 1 4 K2+700 Village Renhe Town -K12+800 Renhe 1,175 2,485 80 3,095 24 105 7 27 Community K12+800 Tianchang Shuguang 860 0 0 860 28 123 5 21 -K15+640 Sub-district Community Total 2,863 2,547 148 4,913 57 254 15 59 Proportion 58.3% 51.8% 3.0% 100%

Among the households affected by the demolition of residential houses, 18 households (31.58%) have a demolition of 21-50m2; 15 households (26.32%) 51-100m2; 10 households (17.54%) 101-150m2; and 15 households (26.32%) over 151m2. The impacts of the demolition of residential houses are shown in Table 2-10.

Table 2-10 Degrees of Impact of Demolition of Residential Houses Households 20m2 151m2 Pile No. Town Village 21- 51- 101- or or Subtotal 50m2 100m2 150m2 less more Qinlan Zhuchang K0+,000 -K2+700 0 0 0 0 2 2 Town Village Wuzhuang 0 2 1 0 0 3 Renhe Village K2+700 -K12+800 Town Renhe 0 2 9 8 6 24 Community K12+800 Tianchang Shuguang 0 14 5 2 7 28 -K15+640 Sub-district Community Total 0 18 15 10 15 57 Proportion 0 31.58% 26.32% 17.54% 26.32% 100%

2.7 Relocation of entities and impact analysis

In the subproject, 4 entities will be relocated, with a demolition area of 1,170m2, affecting 45 people, including 3 enterprises, with a demolition area of 1,100m2, affecting 37 people; and one public institution, with a demolition area of 70m2, affecting 8 people. The details of these entities are shown in Table 2-11 .

Table 2-11 Summary of Entities Affected by Demolition Demolition area (m2) Affected Pile No. Town Entity Address Masonry Masonry populati Degree of impact Subtotal concrete timber on Demolition of some office and Lulong Grain Lulong 500 0 500 20 storage rooms, Supply Station Community K2+700 Renhe not affecting -K12+800 Town normal operation Supply and Renhe Already shut marketing 0 520 520 7 Baima cooperative down Demolition of a small part of Chengdong Toy Shuguang 80 0 80 10 storage rooms, Factory Community Tianchang not affecting K12+800 Sub-district -K15+640 normal operation Animal Epidemic Shuguang Demolition of 70 0 70 8 Prevention Station Community one office room Total 650 520 1,170 45

2.8 Affected infrastructure and ground annexes

The subproject affects 22 types of infrastructure and ground annexes, including public toilets, telegraph poles and transformers, as shown in Table 2-12.

Table 2-12 Affected Ground Annexes Qinlan Town Renhe Town Tianchang Sub-district Type Unit Shouchang Qingzhu Zhanggu Lulong Renhe Wuzhuang Baima Shuguang Guangning Total Village Village Village Community Community Village Village Community Village Public toilets / 0 0 0 1 9 0 2 0 0 12 10KV telegraph poles / 0 1 5 2 15 4 120 0 1 148 380V telegraph poles / 80 17 10 50 7,000 200 0 380 12 7,749 380V wooden / 0 2 0 0 0 4 0 55 5 66 telegraph poles Transformers / 8 0 0 4 4 0 8 0 0 24 Canals M2 0 120 5,000 2,000 2,000 20,000 240 2,500 0 31,860 Bridges / 2 0 0 2 0 0 2 1 0 7 Highways M2 120 0 0 0 0 0 36,000 0 0 36,120 Tractor plowing roads M2 0 0 0 0 2,000 0 0 1,000 0 3,000 Tombs / 0 0 15 0 30 25 0 0 0 70 Underground M 0 0 0 0 0 2,000 0 0 0 2,000 structures Water supply pipes M 0 0 0 2,500 0 0 6,000 0 0 8,500 Drainpipes M 4,000 0 100 2,500 100 0 6,000 40 0 12,740 Communication cables M 0 0 0 2,500 0 2,000 3,000 0 0 7,500 Power cables M 0 0 0 2,500 0 2,000 3,000 0 0 7,500 Lawns, parterres M2 360 0 0 700 0 0 3,200 0 0 4260 Tapping pipes M 5,000 0 0 5,000 0 0 6,000 0 0 16,000 Pumped wells, large / 40 0 0 1 0 0 0 0 0 41 opening wells Big trees (non fruit) / 85 50 0 200 100 100 600 0 40 1175 Small trees (non fruit) / 10 0 0 1,000 400 350 600 0 0 2,360 Scattered fruit trees / 0 0 0 10 0 0 0 0 0 10 Enclosure M2 0 0 0 0 0 0 650 90 0 740

2.9 Affected population

2.9.1 Summary

The subproject will affect 7,331 people out of 1,787 households and 4 entities in total, affect 5,692 people out of 1,383 households and 4 entities permanently, in which 5,393 people out of 1,326 households are affected by the acquisition of collective land only; 188 people out of 42 households are affected by house demolition only; 66 people out of 15 households are affected by both house demolition and land acquisition; 4 entities will be relocated, affecting 45 people; 1,639 people out of 404 households will be affected by temporary land occupation. The population affected by the subproject is shown in Table 2-13.

Table 2-13 Summary of Affected Population Qinlan Town Renhe Town Tianchang Sub-district Shouchang Qingzhu Zhanggu Lulong Renhe Wuzhuang Baima Shuguang Guangning Subtotal No. Category Village Village Village Community Community Village Village Community Village House- Popu- House- Popu- House- Popu- House- Popu- House- Popu- House- Popu- House- Popu- House- Popu- House- Popu- House- Popu- No. holds lation holds lation holds lation holds lation holds lation holds lation holds lation holds lation holds lation holds lation Permanent 11 59 32 135 390 1,589 24 141 122 473 41 165 3 16 464 1854 300 1,260 1,383 4 5692 1 impact Affected 11 59 32 135 390 1,589 23 121 122 473 41 165 2 9 462 1836 300 1,260 1,383 0 5,647 1.1 residents -Land occupation 9 45 32 135 390 1,589 23 121 98 368 38 153 2 9 434 1713 300 1,260 1,326 0 5,393 only -House demolition 0 0 0 0 0 0 0 0 17 78 2 8 0 0 23 102 0 0 42 0 188 only -Both land occupation 2 14 0 0 0 0 0 0 7 27 1 4 0 0 5 21 0 0 15 0 66 and house demolition Enterprises 0 0 0 0 0 0 1 20 0 0 0 0 1 7 1 10 0 0 0 3 37 1.2 relocated Public institutions 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 8 0 0 0 1 8 1.3 relocated Temporary land 3 18 10 41 117 477 7 36 32 119 12 47 1 3 132 520 90 378 404 / 1639 2 occupation Total 4 3 population 14 77 42 176 507 2066 31 177 154 592 53 212 4 19 596 2374 390 1638 1,787 7331

2.9.2 Affected vulnerable groups

For the purpose of the project, vulnerable groups mean the disabled, Wubao5 （Five Guarantees）, widows, low-income or poor person and ethnic minorities. Based on the survey, the affected population is composed entirely of Han people. The main vulnerable groups affected by the Project are the disabled and low-income persons6.The affected population of the subproject includes32 households falling into vulnerable groups, with a household population of 125, all affected by house demolition, including 95people out of 24 low-income families, and 8 households with a disabled member (total population: 30). The affected vulnerable groups are shown in Table 2-14.

Table 2-14 Summary of Vulnerable Groups Low-income families Illness or disability Total Pile No. /City Town Village Affected Affected Affected Affected Affected Affected

T households population households population households population ianchang ianchang Lulong 10 41 0 0 10 41 K12+800 Renhe Community -K15+640 Town Baima 9 33 8 30 17 63 Village K2+700 Tianchang Shuguang 5 21 0 0 5 21 -K12+800 Sub-district Community Total 24 95 8 30 32 125

2.9.3 Affected women

Among the affected people surveyed, there are 625 women, accounting for 51.4%. No household composed mainly of single female laborers resulting from bereft of spouse, divorce or abandonment was found among the rural households affected by land acquisition. According to the survey, the affected women enjoy the same legal rights as men, including contracting of arable land, receiving education, family planning, participation in election, etc. Most of the interviewed female laborers think they have the same autonomy in production and operation as men, and can elect to work or do small business freely. Of course, men and women play different roles in family life and production. More women do housework, bring up children, deal with household sidelines (e.g., household cultivation), and work at manual manufacturing plants, while men deal with transport or work mainly. Generally, the working hours of women are 1.2 times those of men. The impact on the affected women’ income comes mainly from the reduction in agricultural production arising from the acquisition of arable land and the impact on household cultivation arising from house demolition, while the per capita income from crop cultivation and stockbreeding is up to 1,127 yuan/person, accounting for 19.5% of household income. In terms of education, boys and girls enjoy equal opportunities in receiving education, and as long as children study hard, their parents would do their best to support their school education. According to the survey, women have the same concerns as men: (a) The

5 “Wubao” refers to the person who not only loses the labor abilities and income, but has no dependent person regulated by laws. The “Wubao” could get the subsidies or assitance from government as follows: 1) Grain and oils, subsidiary food and fuel; 2) Living goods including clothes, quilt etc, and pocket money; 3) Basic residential housing, 4) Medical subsidies; 5) Funeral affairs 6 the annual per capita net income is below 1067 yuan

compensation standards should be based on land output and resettlement cost; and (b) The compensation fees should be paid directly to the affected rural households based on their needs. Women have the following needs that are different from men: (a) Women ask for an equal degree of cash compensation and land replacement; (b) Women ask for training on crop cultivation, stockbreeding and manual work; and (c) In most households, men play a dominant role in participation, while women also expect to participate in village-level management. The compensation fees should be preferably signed by the couple for confirmation. The gender analysis is shown in Appendix 3.

3 Social and Economic Conditions

3.1 Social and economic profile of affected areas

3.1.1 Social and economic profile of affected cities Tianchang City—Tianchang City is located at the east-most tip of Anhui Province and on the west of Gaoyou Lake. Except that it is connected with Anlai County, Anhui Province in the west, it borders cities and counties like Nanjing, Yizheng, Yangzhou, Gaoyou, Jinhu and Xuyi, Jiangsu Province; the urban area is 51km away from Yangzhou, 75km away from Nanjing and about 3 hours’ drive from Shanghai; the city is a gang-plank between the east coastal region and the central inland region of China, and an important processing base in the Yangtze River Delta. It governs 14 towns, one sub-district office, and had a population of 624,000 at the end of 2007. There is a great development potential for Tianchang City’s mineral resources, such as petroleum, natural gas, high-quality mineral water, iron ore, granites, dolomite and pottery clay; it has a petroleum reserve of about 4.2 million tons, and a reserve of high-quality mineral water containing strontium, metasillicio acid and free CO2 of over 100 million tons as identified by the Ministry of Geology and Mineral Resources, ranking first in China. Tianchang City enjoys advantaged natural conditions that are suitable for the growth of a variety of crops, especially high-quality rice and wheat, “Double Low” rapeseed, nuisance-free vegetables (lily, wormwood, preserved pickle, etc.) and special aquatic products. Industry is the main body of Tianchang’s economy, with a wide range of pillar industries in the city, including wires and cables, chemicals, electronics, toys, machinery, pharmaceutics, plastics, building materials, grains and oils, and electronic components.

Table 3-1 Basic Information of Tianchang City No. Item Unit Tianchang City 1 Land area km2 1,729 Arable area 10,000 mu 51.1 2 Population 10,000 people 62.4 2.1 Agricultural population 10,000 people 46.2 2.2 Nonagricultural population 10,000 people 16.2 3 GDP 100 million yuan 85.1 3.1 Primary industry 100 million yuan 17.6 3.2 Secondary industry 100 million yuan 45.7 3.3 Tertiary industry 100 million yuan 21.8 3.4 Per capita GDP yuan/person 13,637 Per capita disposable income of urban 4 yuan/person 11,000 residents 5 Per capita net income of rural residents yuan/person 3,600

3.1.2 Social and economic profile of affected towns Qinlan Town—Qinlan Town is located the east-most tip of Anhui Province, close to Gaoyou Lake, and extends into the hinterland of Jiangsu Province, boasting unique geographic location and convenient traffic. The town has a resident population of about 41,000. Its industries include electronics, information, toys, metalworking, chemicals, home electric appliances, machine making, molds, building materials, and food processing. In recent years, while developing the electronic industry positively,

Qinlan Town has readjusted its industry structure, and created the new photovoltaic industry cluster by introducing mono-crystalline silicon enterprises. In 2007, the value of exports of the electronic industry cluster in foreign currencies broke through US$100 million for the first time, and direct exports attained US$108.26 million. Tianchang Sub-district—Tianchang Sub-district is the seat of the municipal CPC committee and the municipal government, and the political, economic and cultural center of the city. The sub-district borders Wanshou and Renhe Towns in the east, Yeshan and Zhengji Towns in the south, Shiliang Town in the west, and Yongfeng Town and Dakuangwei Farm in the north, with a total area of 102.2km2, an urban area of 14.63km2, and a total population of 135,000, including an agricultural population of 23,275 and a floating population of over 20,000. The sub-district has over 38,580 mu of arable land, and the rural economy is focused on the traditional cultivation of paddy rice, wheat and rape, and also includes aquaculture and greenhouse vegetable cultivation. The rural industry rose in the early 1970s, and consists mainly of electric fans, apparel, leather shoes, cement, cakes, meters, wires and cables, building materials, mechanical sealing, toy processing and real estate development, etc. Renhe Town—Renhe Town is located east of the urban area of Tianchang City, and borders Qinlan Town in the east, Jinji Town in the south and Gaoyou Lake in the north, run through by the Tianchang-Yangzhou Highway, boasting convenient and smooth traffic and prominent geographic advantages. The town has a total area of 37.6km2, a total population of 15,400, a labor force of 8,087. Renhe has always been the political, economic and cultural center of east Tianchang, and has an excellent industrial and agricultural foundation. The town has an arable area of 24,589 mu, including 19,000 mu of paddy field, 5,300 mu of dry land, and an effective irrigated area of about 18,000 mu. The town produces rice and wheat mainly, and also grows miscellaneous grain crops such as sweet potato and beans. Its cash crops include rape, cotton, peanut, sesame, etc. In recent years, great progress has been made in agricultural restructuring, and a number of major cultivators and breeders of vegetables, watermelon, 7-colored blackcock and pigeon for meat, etc. The economic conditions of the affected Xiangs and towns are shown in Appendix 5. 3.1.3 Social and economic profile of affected villages The subproject will affect 9 villages of the 3 towns in total. The 9 affected villages have a per household population of 3.1-4.3, a per capita arable area of 0.04-1.9 mu, and a per capita income of 4,185-5,650 yuan. The traditional crops of the affected villages are mostly paddy rice, wheat and rape. According to the survey, the affected villages are located advantageously long S312. Influenced by the developed economy of Yangzhou City and Tianchang City, the nonagricultural economy here is developed, and agriculture is no longer the major industry. Therefore, the main sources of income of the farmers in the affected areas are industry and tertiary industries.

Table 3-2 Social and economic profile of affected villages Per Per capita Per capita net Arable Town Village Households Population Men Labor force household arable area income of farmers area (mu) population (mu/person) (yuan/person) Shouchang 1,596 5,206 2,603 3,606 230 3.3 0.04 5,400 Village Qinlan Town Qingzhu 930 3,793 2,124 2,310 6,282 4.1 1.7 5,650 Village Zhanggu 477 1,842 903 1,276 3,334 3.9 1.8 4,330 Village Lulong 1,386 4,842 2,324 2,891 6,915.5 3.5 1.4 4,450 Renhe Town Community Renhe 1,232 3,768 2,185 2,336 2,470 3.1 0.7 4,610 Community Wuzhuang 499 1,891 964 1,324 3,038 3.8 1.6 4,340

Per Per capita Per capita net Arable Town Village Households Population Men Labor force household arable area income of farmers area (mu) population (mu/person) (yuan/person) Village Baima Village 758 2,933 1,408 1,785 5,617 3.9 1.9 4,230 Shuguang 1,367 4,823 2,363 2,946 5,994 3.5 1.2 4,200 Tianchang Community Sub-district Guangning 767 3,264 1,534 2,122 5,004 4.3 1.5 4,185 Village

3.2 Social and economic profile of affected population

3.2.1 Basic economic situation of affected population To learn the basic information of the population affected by land acquisition, the social and economic survey team conducted a sampling survey of the affected households. The subproject affects 5,647 people out of 1,383 households directly. 277 affected households in Renhe Town, Tianchang Sub-district and Qinlan Town were involved in the sampling survey, accounting for 20.3% of all affected households. The sample distribution is shown in Appendix 4. 1) Ethnic and gender analysis The 277 surveyed households have a total population of 1,216, a total labor force of 794 and an average household population of 4.39. All the surveyed population is Han people, including 625 women, accounting for 51.4%; women deal mainly with crop cultivation, housework and other productive activities. 2) Age structure Among the 1,216 people, 251 are under the age of 18, accounting for 20.6%; 455 aged 18-40, accounting for 37.4%; 339 aged 40-60, accounting for 27.9%; and 171 aged over 60, accounting for 14.1%. See Figure 3-1 for the age structure.

over 60 under 18 14% 21%

aged 40-60 28%

aged 14-40 37%

Figure 3-1 Age Distribution Structure

3) Education Among the 1,216 people out of the 277 surveyed households, 180 are illiterate, accounting for 14.8%; 334 have received primary school education, accounting for 27.5%; 537 have received junior secondary school education, accounting for 44.2%;

138 have received senior / technical secondary school education, accounting for 11.3%; 27 have received college or above education, accounting for 2.2%. See Figure 3-2 for education.

college or above 2%

illiterate senior or 15% technical secondary school 11% primary school junior 27% secondary school 45%

Figure 3-2 Education Distribution Structure

4) Housing area Among the 1,216 people out of the 277 surveyed households, the residential houses are in the masonry concrete and masonry timber structures mainly, with a total housing area of 26,850m2, a per household housing area of 96.9m2, and a per capita area of 22.1m2. 5) Arable land The 1,216 people out of the 277 surveyed households own 4.39 mu of arable land per household or 1.0 mu of arable land per person. The arable land is paddy field and dry land mainly, and the main crops are paddy rice and wheat. The net annual income per mu is about 500 yuan. 6) Household properties Among the 1,216 people out of the 277 surveyed households, an average household owns 1.72 color/black-and-white TV sets, 0.59 refrigerators, 2.38 electric fans, 1.24 washing machines, 0.58 air-conditioners, 1.55 fixed telephones and/or mobile phones, 1.45 bicycles, 1.17 motorcycles and 0.31 tractors. In terms of household properties, the affected households largely have a medium standard of living. 7) Household income and expenditure According to the statistical analysis of the 1,216 people out of the 277 surveyed households, per capita annual household income is 5,226.6 yuan/person, in which agricultural income is 1,059.7 yuan/person, accounting for 20.3%; sideline income 759.0 yuan/person, accounting for 14.5%; operating income 1,162.8 yuan/person, accounting for 22.2%; income from work 2,129.8 yuan/person, accounting for 40.7%; and other income 115.4 yuan/person, accounting for 2.2%. The main sources of income of the farmers mainly include crop cultivation, secondary industries, work, etc., which is consistent with the local industrial structure in which agriculture and industry

are paid equal attention to. Women usually do manual work while farming, while men usually work at a factory or outside. Per capita annual household expenditure is 2,274.7 yuan/person, in which household operating expenditure is 657.9 yuan/person, accounting for 28.9%; personal consumption expenditure 606.3 yuan/person, accounting for 26.7%; tax and charge payment 101.0 yuan/person, accounting for 4.4%; purchase of productive fixed assets 353.7 yuan/person, accounting for 15.5%; and other consumption 555.8 yuan/person, accounting for 24.4%. The sampling survey results of the income and expenditure of the affected households are shown in Table 3-4.

Table 3-3Analysis of Household Income and Expenditure Per household Per capita Item Proportion (%) (yuan/household) (yuan/person) Agricultural income 4,768.5 1,059.7 20.3% Sideline income 3,415.6 759.0 14.5% Operating income 5,232.4 1,162.8 22.2% Annual Income from work 9,584.1 2,129.8 40.7% household Other income 519.3 115.4 2.2% income Subtotal 23,519.9 5,226.6 100% Household operating 2,960.5 657.9 28.9% expenditure Purchase of productive 1,552.5 353.7 15.5% fixed assets Net income 19006.9 4215 / Personal consumption 2,661.5 606.3 26.7% expenditure Payment of taxes and 443.6 101 4.4% charges Other 2,439.7 555.8 24.4% Subtotal 10,057.8 2,274.7 100.0% saving 19,006.9 4,215.0

8) Willingness for resettlement While conducting the social and economic survey, the survey team also conducted a survey of willingness for resettlement, the results of which are as follows: Understanding: 96.9% of the respondents know about the subproject, 3.1% are not very clear, and no respond it unclear at all. Supportive attitude: 92.7% of the respondents support the subproject, and 7.3% are indifferent; Degree of impact: 1.6% of the respondents think the subproject has no adverse impact; 39.1% think the construction of the subproject will affect traffic; 43.8% think house demolition of the subproject will cause economic losses to them; and 15.6% think there are other adverse impacts. Resettlement for production: 41.9% of the respondents ask for cash compensation without land replacement; 58.1% ask for cash compensation after land reallocation, i.e., compensation fees should be distributed evenly and land reallocated in the collective. The public opinion survey is shown in Table 3-5. Table 3-4 Public Opinion Survey Proportion of selection by No. Question Answer affected households (%) 1 2 3 4 5 Total Are you clear about the (1) Clear; (2) Not very clear; (3) 1 96.9 3.1 0.0 0.0 0.0 100 subproject? Unclear Source of the subproject (1) Newspaper; (2) Meeting; (3) 2 0.0 0.0 11.9 88.1 0.0 100 and land acquisition Neighbor; (4) Social surveyor

Proportion of selection by No. Question Answer affected households (%) 1 2 3 4 5 Total Do you approve of the 3 (1) Yes; (2) No; (3) Indifferent 92.7 0.0 7.3 0.0 0.0 100 subproject? To whom do you think a) State: (1) Yes; (2) No 96.6 3.4 0.0 0.0 0.0 100 the subproject is of b) Collective: (1) Yes; (2) No 94.9 5.1 0.0 0.0 0.0 100 4 benefit (multiple choices c) Individual: (1) Yes; (2) No 89.8 10.2 0.0 0.0 0.0 100 allowable)? (1) Keeping assets safe; (2) Which benefits do you Improving ecological 5 think the subproject will 23.7 33.9 23.7 22.0 0.0 100 environment; (3) Increasing bring to you? income; (4) Other (1) No adverse impact; (2) Impact on traffic conditions due to What adverse impacts construction; (3) Possible 6 do you think will the economic losses due to house 1.6 39.1 43.8 15.6 0.0 100 subproject have on you? demolition; (4) Possible reduction of income due to land acquisition; (5) Other adverse impacts Do you know the compensation and 7 resettlement policies for (1) Yes; (2) Somewhat; (3) No 0.0 15.3 84.7 0.0 0.0 100 land acquisition and house demolition? During land acquisition and house demolition, will you file an appeal 8 (1) Yes; (2) No 83.1 16.9 0.0 0.0 0.0 100 when your lawful rights and interests are infringed upon? (1) Cash compensation without Willingness for land replacement; (2) Land 9 compensation for land reallocation, with compensation 41.9 58.1 0.0 0.0 0.0 100 acquisition fees going to the collective; (3) Other, specify (1) Secondary and tertiary If you expect cash industries; (2) Work outside; (3) compensation, what will 10 Industrial restructuring; (4) 30.5 32.2 23.7 8.5 5.1 100 you do when you receive Purchase of insurance; (5) Other, it? specify What assistance do you (1) Skills training; (2) Provision of 11 expect after land employment information; (3) 40.7 40.7 18.6 0.0 0.0 100 acquisition? Other, specify

3.2.2 Impacts of the subproject on women Among the affected people surveyed, there are 625 women, accounting for 51.4%. No household composed mainly of single female laborers resulting from bereft of spouse, divorce or abandonment was found among the rural households affected by land acquisition. According to the survey, the affected women enjoy the same legal rights as men, including contracting of arable land, receiving education, family planning, participation in election, etc. Most of the interviewed female laborers think they have the same autonomy in production and operation as men, and can elect to work or do small business freely. Of course, men and women play different roles in family life and production. More women do housework, bring up children, deal with household sidelines (e.g., household cultivation), and work at manual manufacturing plants, while men deal with transport or work mainly. Generally, the working hours of women are 1.2 times those of men. The impact on the affected women’ income comes mainly from the reduction in agricultural production arising from the acquisition of arable land and the impact on household cultivation arising from house demolition, while the per capita income from

crop cultivation and stockbreeding is up to 1,127 yuan/person, accounting for 19.5% of household income. In terms of education, boys and girls enjoy equal opportunities in receiving education, and as long as children study hard, their parents would do their best to support their school education. According to the survey, women have the same concerns as men: (a) The compensation standards should be based on land output and resettlement cost; and (b) The compensation fees should be paid directly to the affected rural households based on their needs. Women have the following needs that are different from men: (a) Women ask for an equal degree of cash compensation and land replacement; (b) Women ask for training on crop cultivation, stockbreeding and manual work; and (c) In most households, men play a dominant role in participation, while women also expect to participate in village-level management. The gender analysis is shown in Appendix 3.

4 Legal Framework and Policies

4.1 Laws, regulations and policies applicable to resettlement

The resettlement policies for the subproject are formulated based on ADB policies and the applicable laws, regulations and policies of China mainly, including: 1) ADB policies  Involuntary Resettlement, November 1995  Resettlement Operations Manual (OM/F2), October 2003  Gender and resettlement, February 2003 2) Laws, regulations and policies of the PRC  Land Management Law of the People's Republic of China (effective from January 1, 1999, amended on August 28, 2004)  Decision of the State Council on Deepening Reform and Exercising Strict Land Management (Guo Fa [2004] No.28) (October 21, 2004)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR Fa [2004] No.238) (November 3, 2004)  Measures for the Administration of Preliminary Examination of the Land Used for Construction Projects (Ministry of Land and Resources Order No.27) (November 1, 2004) 3) Provincial and local policies  Circular of the Anhui Provincial People’s Government on Doing Well in Compensation and Resettlement for Land Acquisition to Protect Farmers’ Lawful Rights and Interests Practically  Detailed Rules of Anhui Province for the Management of the Collection and Use of Farmland Reclamation Fees (Cai Zong [2001] No.1061)  Procedures of Anhui Province on the Implementation of the Land Management Law of the People’s Republic of China (December 1, 2002)  Circular of the Anhui Provincial Finance Department on Farmland Occupation Tax on Highways  Guidelines of the Anhui Provincial People’s Government on Doing Well in the Employment and Social Security for Farmers Affected by Land Acquisition (Wan Zheng [2005] No.63)  Interim Procedures of Tianchang Municipality on the Endowment Insurance of Farmers Affected by Land Acquisition (July 25, 2007)

4.2 ADB policies

The three important elements of the involuntary resettlement policy are (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for restoration to achieve at least the same level of well-being with the project as without it. Some or all of these elements may be present in a project involving involuntary resettlement. For any ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the project cycle, taking into account the following basic principles: (i) Involuntary resettlement should be avoided whenever feasible. (ii) Where population displacement is unavoidable, it should be minimized by providing viable livelihood options. (iii) Replacing what is lost. If individuals or a community must lose all or part of their land, means of livelihood, or social support systems, so that a project might

proceed, they will be compensated and assisted through replacement of land, housing, infrastructure, resources, income sources, and services, in cash or kind, so that their economic and social circumstances will be at least restored to the pre-project level. All compensation is based on the principle of replacement cost. (iv) Each involuntary resettlement is conceived and executed as part of a development project or program. ADB and executing agencies or project sponsors, during project preparation, assess opportunities for affected people to share project benefits. The affected people need to be provided with sufficient resources and opportunities to reestablish their livelihoods and homes as soon as possible, with time-bound action in coordination with the civil works. (v) The affected people are to be fully informed and closely consulted. Affected people are to be consulted on compensation and/or resettlement options, including relocation sites, and socioeconomic restoration. Pertinent resettlement information is to be disclosed to the affected people at key points, and specific opportunities provided for them to participate in choosing, planning, and implementation options. Grievance redress mechanisms for affected people are to be established. Where adversely affected people are particularly vulnerable groups, resettlement planning decisions will be preceded by a social preparation phase to enhance their participation in negotiation, planning, and implementation. (vi) Social and cultural institutions. Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted. (vii) No formal title. Indigenous groups, ethnic minorities, pastoralists, people who claim for such land without formal legal rights, and others, who may have usufruct or customary rights to affected land or other resources, often have no formal legal title to their lands. The absence of a formal legal title to land is not a bar to ADB policy entitlements. (viii) Identification. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligibility cutoff date, preferably at the project identification stage, to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits. (ix) The Poorest. Particular attention must be paid to the needs of the poorest affected people, and vulnerable groups that may be at high risk of impoverishment. This may include those without legal title to land or other assets, households headed by females, the elderly or disabled and other vulnerable groups, particularly indigenous peoples. Appropriate assistance must be provided to help them improve their socio-economic status. (x) The full resettlement costs are to be included in the presentation of project costs and benefits. This includes costs of compensation, relocation and restoration, social preparation and livelihood programs as well as the incremental benefits over the without-project situation (which are included in the presentation of project costs and benefits). The budget also includes costs for planning, management, supervision, monitoring and evaluation, land taxes, land fees, and physical and price contingencies. Where loans include subprojects, components or investments prepared only after project approval and loans through financial intermediaries that are likely to cause involuntary resettlement, sufficient contingency allowance must be allocated for resettlement prior to approval of the loan. Similarly, resettlement plans should also reflect the timeframe for resettlement planning and implementation. (xi) Eligible costs of compensation. Relocation and restoration may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely availability of the required resources and to ensure compliance with involuntary

resettlement procedures during implementation.

4.3 Laws, regulations and policies of the PRC

For the Project, the Land Administration Law of the People’s Republic of China is the major legal basis. Ministry of Land and Resources and Anhui Province have also promulgated some related regulations and policies. The relevant items on resettlement are shown in Table 4-1. The Decision of the State Council on Deepening Reform and Strengthening Land Administration (Ref. GF [2004]28) was issued in Oct. 2004 and sets out (i) the principles of land acquisition compensation and resettlement compensation, (ii) the compensation standards, (iii) land acquisition procedures, and (iv) monitoring system. Correspondingly, Ministry of Land and Resources issued Guidelines for Strengthening Land Acquisition Compensation and Relocation System (Ref. No. [2004] 238). These documents are as shown in Table 4-2. These documents are the key PRC laws and regulations for this Project.

Table 4-1 Abstract of Land Management Law and Relevant Policies Index Key points Index The People's Republic of China resorts to a socialist public ownership i.e. an ownership by the whole people Land and ownerships by collectives, of land. Land Management Law, Article 2 ownership The State introduces the system of compensated use of land owned by the State except the land has been allocated for use by the State according to law. Any unit or individual that need land for construction purposes should apply for the use of land owned by the State according to law; …… Land Management Law, Articles Whereas occupation of land for construction purposes involves the conversion of agricultural land into land 43 and 44 Application for for construction purposes, the examination and approval procedures in this regard shall be required. …… land used for People's governments at all levels shall strengthen the administration of plans for land use and exercise Procedures of Anhui Province on construction control of the aggregate land for construction purposes. If no planning quota for use of farmland for other the Implementation of the Land purposes is available or such quota is exceeded, no additional land for construction shall be approved. Management Law of the People’s Saved planning quotas for use of farmland for other purposes may be carried over to the next year after Republic of China (June 26, approval. 2004), Article 13 The acquisition of basic farmland land exceeding 35 hectares outside the basic farmland, and other land exceeding 70 hectares shall be approved by the State Council. Acquisition of land other than prescribed in the preceding paragraph shall be approved by the people's Land Management Law, Article 45 governments of provinces, autonomous regions and municipalities and submitted to the State Council for the Land record. acquisition The land administrative authorities of a municipal or county people’s government shall draft a plan for use of Procedures of Anhui Province on authority farmland for other purposes, a farmland replenishment plan, a land acquisition plan and a land supply plan to the Implementation of the Land the municipal or county people’s government for approval, and escalate them to people’s governments with Management Law of the People’s approval authority for approval. In case of acquisition of woodland, the consent of the woodland Republic of China (June 26, administrative authorities shall be obtained in advance. 2004), Article 33 46 For the acquisition of land by the State the local people's governments at and above the county level shall make an announcement and organize the implementation after the approval according to the legal Land procedures. acquisition After the plan for land compensation and resettlement fees is finalized, related local people's governments Land Management Law, Articles declaration shall make an announcement and hear the opinions of the rural collective economic organizations and 46, 48 and 49 system peasants whose land has been acquired. Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation fees for land acquired and accept their supervision.

Index Key points Index In acquiring land, compensation should be made according to the original purposes of the land acquired. Compensation fees for land acquired include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural Land Management Law, Article 47 population to be resettled shall be calculated by dividing the amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. However, the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition. Land compensation standards for acquisition of land other than arable land: for fishponds, etc., 6 times the average output value of the preceding 3 years; for orchards, etc., 7 times the average output value of the preceding 3 years; in case of no harvest, 6 times the average output value of similar land of the preceding 3 Compensation years; for reclaimed land which has been cultivated for less than 3 years, 3-4 times the average output value standards for of the arable land of the same village (team) of the preceding 3 years; for reclaimed land which has been land cultivated for 3 years or more, the same as arable land; land used for construction collectively owned by acquisition farmers, 4-5 times the average output value of the arable land of the same village (team) of the preceding 3 years; for other land, 2-3 times the average output value of the arable land of the same village (team) of the Procedures of Anhui Province on preceding 3 years. The compensation standards for woodland shall be governed by the applicable laws and the Implementation of the Land regulations. Resettlement subsidy standard for every farmer to be resettled: for acquisition of farmland, 3-4 Management Law of the People’s times the average output value of the preceding 3 years; for land used for construction collectively owned by Republic of China (June 26, farmers, 2-3 times the average output value of the arable land of the same village (team) of the preceding 3 2004), Articles 34, 35, 36 and 37 years; for barren hills and slopes, no resettlement subsidy. If the farmers to be resettled are unable to maintain their former standard of living, with the approval of the provincial people’s government, the resettlement subsidy may be increased. however, the sum of the land compensation and the resettlement subsidy shall not exceed the following limit: (1) In case of acquisition of arable land, 30 times the average output value of the preceding 3 years of the acquired arable land; …… young crops on the acquired arable land shall be compensated for at the output value of crops of that season; for perennial crops shall be compensated for at their annual output value; no compensation shall be granted if there is no young crop. Users who use the land temporarily should use the land according to the purposes agreed upon in the contract for the temporary use of land and should not build permanent structures. The term for the temporary Land Management Law, Article 57 Temporary use of land shall not usually exceed two years. land use If state land or land collectively owned by farmers is to be used temporarily for project construction or Procedures of Anhui Province on geologic examination, such use shall be approved by the land administrative authorities of the local the Implementation of the Land

Index Key points Index municipal or county people’s government; temporary land use within the urban planning area shall be Management Law of the People’s approved by the urban planning administrative authorities before submission for approval. Republic of China (June 26, 2004), Article 45

Table 4-2 Main Provisions of Guo Fa [2004] No.28 and MLR Fa [2004] No.238 and Application Guo Fa [2004] No.28—Improvement of compensation and resettlement systems for land acquisition MLR Fa [2004] No.238 County-level and above local people’s governments shall take practical measures so that the standard of living of farmers affected by land acquisition is not reduced by land acquisition. Land compensation, resettlement subsidy and compensation for ground annexes and crops shall be paid in full and timely pursuant to law. If the land compensation and resettlement subsidy pursuant to the prevailing Article 12 laws and regulations are insufficient to maintain the former standard of living of the farmers affected by land Fixation of uniform annual output Improvement acquisition or to pay the social security expenses of farmers who lose all land due to land acquisition, value standards of measures people’s governments of provinces, autonomous regions and municipalities directly under the Central Determination of uniform annual for Government shall approve an increased resettlement subsidy. If the sum of the land compensation and the output value multiples compensation resettlement subsidy attains the statutory upper limit and is still insufficient to maintain the former standard of Fixation of integrated land prices for land living of the farmers affected by land acquisition, local people’s governments may pay a subsidy from the for land acquisition areas acquisition income from compensated use of state land. Distribution of land compensation people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall fix and publish the uniform annual output value standards or integrated land prices for land acquisition of all cities and counties, so that the same price applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full. County-level and above local people’s governments shall take specific measures to guarantee long-term livelihoods of farmers affected by land acquisition. For projects with a stable income, farmers may become a shareholder using the right to use of land used for Article 13 construction approved pursuant to law. Resettlement for agricultural Proper Within the urban planning area, local people’s governments shall bring farmers who lose all land due to land production resettlement of acquisition into the urban employment system, and establish a social security system; out of the urban Resettlement by reemployment farmers planning area, in acquiring land collectively owned by farmers, local people’s governments shall reserve Resettlement by dividend affected by necessary arable land or arrange appropriate jobs for farmers affected by land acquisition within the same distribution land administrative area; farmers without land who do not have the basic living and production conditions shall be Non-local resettlement acquisition subject to non-local resettlement. The labor and social security authorities shall propose guidelines for the employment training and social security systems for farmers affected by land acquisition as soon as possible. Article 14 During land acquisition, the ownership of collective land of farmers and the right to contracted management Disclosure of information on land

Guo Fa [2004] No.28—Improvement of compensation and resettlement systems for land acquisition MLR Fa [2004] No.238 Improvement of farmers’ land shall be maintained. acquisition of land Before land acquisition is submitted for approval pursuant to law, the use, location, compensation standard Confirmation of land acquisition acquisition and mode of resettlement of the land to be acquired shall be notified to farmers affected by land acquisition; survey results procedures the survey results of the present situation of the land to be acquired shall be confirmed by rural collective Organization of land acquisition economic organizations and farmers to be affected by land acquisition; if necessary, the land and resources hearing authorities shall organize a hearing in accordance with the applicable provisions. The materials for notification to and confirmation by the farmers affected by land acquisition shall be taken as requisite materials for approval for land acquisition. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of farmers affected by land acquisition and land users. Approved matters of land acquisition shall be disclosed unless in special cases. If the compensation and resettlement for land acquisition has not been implemented, the acquired land shall not be used forcibly. Article 15 Disclosure of approval items of People’s governments of provinces, autonomous regions and municipalities directly under the Central Strengthening land acquisition Government shall formulate the procedures for the distribution of the land compensation within rural Supervision Payment of compensation and collective economic organizations on the principle that the land compensation is used for rural households over the resettlement expenses for land affected by land acquisition mainly. implementation acquisition Rural collective economic organizations affected by land acquisition shall disclose the receipt, disbursement of land Post-approval supervision and and allocation of land compensation fees to their members and accept supervision. The agricultural and civil acquisition inspection of land acquisition affairs authorities shall strengthen the supervision over the allocation and use of land compensation fees within rural collective economic organizations.

4.4 Main differences between ADB policies and laws of the PRC

Compensation for houses  Difference: ADB policies require compensation standards for replacement costs. Laws of the PRC think depreciation is reasonable, and the compensation standard for an old house should be lower than that for a new house of the same structure.  Solution: Compensation standards are based on replacement costs in all ADB financed products. Compensation for land  Difference: ADB policies require that compensation should be sufficient to offset any income loss, and restore long-term income-generating potential. Chinese standards are based on average annual output value, but may be unrelated to the cost of income restoration.  Solution: The early-stage solution is to provide replacement land, which is hardly possible. Cash compensation is the preferred choice of most people, though they cannot guarantee the reasonable use of these compensation fees. Therefore, ADB needs to further technical support to monitor the income of seriously affected households, especially those of vulnerable groups and assistance should be provided by local governments to assist those who need support. Compensation for resettlement of vulnerable groups  Difference: ADB policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with pauperization. Chinese provisions do not require social analysis, and compensation is based only on the quantity of loss.  Solution: Special funds are available to assist the vulnerable groups, who will be identified during the detailed survey. All measures have been specified in the Resettlement Plan. Consultation and publication  Difference: ADB policies require the affected people are aware of all relevant information, and consulted with as soon as possible. Chinese provisions have improved the transparency of disclosure and compensation. However, the affected people do not play a strong role in project decision-making, and the disclosure period is usually too short.  Solution: Consultation has begun at the early stage (before and during technical assistance). APCD agrees to disclose the Resettlement Plan to the affected people as required by ADB. Lack of legal title  Difference: ADB policies require all demolished houses, whether lawful or unlawful, shall be compensated for at the same standards. According to Chinese laws, people without local registered residence may not be entitled to the same compensation as local people. In addition, the prevailing Chinese laws stipulate that no compensation shall be provided for the acquisition of land and houses of unlawful owners.  Solution: For ADB financed project, all affected people, whether lawful or unlawful, whether having ownership or right to use, will be protected. The same compensation standards will apply as required by ADB. Resettlement monitoring, evaluation and reporting  Difference: ADB requires internal and external resettlement monitoring. However, there is no such requirement in Chinese laws, expect for reservoir

projects.  Solution: Internal and external resettlement monitoring systems have been established for all ADB financed products, and have been included in the Resettlement Plan. The requirements for internal and external reporting are specified in the Resettlement Plan.

4.5 Principles for compensation of the subproject

The principles for compensation and entitlement of the subproject have been formulated in accordance with the laws, regulations and policies of the Chinese government and ADB, with the aim of ensuring that displaced persons can obtain sufficient compensation and assistance measures so that their production and livelihoods are at least restored to pre-displacement levels. The principles for resettlement of the subproject are shown in Table 4-33.

Table 4-3 Principles for Resettlement of the Subproject Principles 1 Involuntary resettlement should be avoided where feasible. The affected people are granted compensation and rights that can at least 2 maintain or even improve their livelihoods in the absence of the project. The affected people are given compensation and assistance in resettlement 3 whether legal title is available or not. If the land available to everyone is insufficient to maintain his/her livelihood, 4 replacement in cash or in kind and other income-generating activities are provided for the lost land. The affected people fully understand their entitlements, the method and standard 5 of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan. No land should be acquired before the affected people are satisfied with the 6 compensation and resettlement (plan). People should not be displaced until the allocation of a housing plot has been agreed upon. The executing agency and an independent agency / third party should monitor 7 the compensation, relocation and resettlement operations. The vulnerable groups (including women) are provided special assistance or 8 treatment so that they lead a better life, and all affected people should have an opportunity to benefit from the project. The Resettlement Plan must be consistent with the master plans of the affected 9 counties and towns. 10 The resettlement expenses are sufficient to cover all affected aspects.

4.6 Cut-off date of compensation

The cut-off date for determining eligibility for compensation is June 30, 2009. The notification of cut-off date will be sent after the FSR is approved. Newly reclaimed arable land, newly built houses or settlement in the affected areas of the affected people will not be included in the scope of compensation or subsidy after the cut-off date. Any house built or tree planted for extra compensation only will not be included.

4.7 Determination of compensation standards for resettlement impacts of the subproject

4.7.1 Acquisition of collective land According to the Land Management Law of the People’s Republic of China, the

Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, the policies and regulations of Anhui Province on the implementation of the Land Management Law of the People’s Republic of China, the compensation fees for the acquisition of arable land include land compensation, resettlement subsidy and crop compensation. The compensation standards for the acquisition of rural collective land are shown in Table 4-4. The compensation rate will be adjusted accordingly if the related policies of Anhui Province are changed; any such changes will be presented in updated RP.

Table 4-4 Compensation Multiples and Standards for Collective Land Acquisition Annual Multiple Compensation standard (yuan/mu) Type of output Land Resettlement Crop Land Resettlement Crop land value Subtotal Subtotal (yuan/mu) compensation subsidy compensation compensation subsidy compensation Paddy 1125 10 6 / 16 11250 6750 500 18,500 field Dry land 1125 10 6 / 16 11250 6750 500 18,500 Vegetable 1125 10 6 / 16 11250 6750 500 18,500 plot Housing 750 10 6 / 16 7,500 4,500 0 12,000 site Other 750 10 6 / 16 7,500 4,500 0 12,000 Village Receiver Individuals Individuals collective

4.7.2 Compensation for temporary land occupation According to the provisions of the state and Anhui Province on temporary land occupation, land temporarily occupied for borrow pits will be compensated for at a time, while other temporarily occupied land will be compensated for at the annual output value of the land for the period of impact. Compensation fees for temporary land occupation include compensation for young crops/ground annexes. The compensation standards for temporary land occupation are shown in Table 4-5. To reduce the impact of land acquisition on young crops, the subproject will be constructed after harvest or before seeding as the case may be. According to the construction design, the period of temporary land occupation is 2 years.

Table 4-5 Compensation Standards for Temporary Land Occupation land compensation Temporary land other temporarily city Land type occupation for occupied land borrow pits (yuan/mu· year) (yuan/mu) cultivated land 12000 4000 Tianchang non-cultivated 4000 4000 land

4.7.3 Compensation standards for house demolition 1) Rural residential houses The compensation standards for houses of different types shall be determined according to the pertinent provisions by reference to the actual prices of the main types of the affected houses and the compensation standards for similar past projects, as shown in Table 4-6. A housing plot will be allocated prior to house demolition, meanwhile the location of new residential plots will be decided by villages and APs.

Table 4-6 Compensation Standards for Rural Residential Houses and Annexes Standard Remark Category Structural type Unit (yuan/unit) Masonry concrete m2 410 House Masonry timber m2 260 compensation Simple m2 80 Moving subsidy yuan/person 500 Other Living allowance for yuan/ Based on 4 compensation 300 transition period household· month months

2) Houses of entities The houses of the entities relocated in the subproject are office, storage rooms or simple houses, and no house for production or operation is involved. There is little impact on the regular production and operating activities of these entities. The compensation standards for houses of different types shall be determined according to the pertinent policies by reference to the actual prices of the main types of the affected houses, as shown in Table 4-7.

Table 4-7 Compensation Standards for Demolition of Houses and Annexes of Entities Standard Category Structural type Unit Remarks (yuan/unit) House Masonry concrete m2 410 compensation Masonry timber m2 260 Shutdown yuan/m2 3 Other compensation compensation Based on 4 Relocation subsidy yuan/m2·month 3 months

4.7.4 Compensation for annexes and infrastructure The compensation standards for annexes and infrastructure affected by the subproject shall be determined on the replacement cost principle, as shown in Table 4-8.

Table 4-8 Compensation Standards for Annexes and Infrastructure Item Unit Compensation standard (yuan/unit) Public toilets yuan/piece 180 10KV telegraph poles yuan/piece 1,500 380V telegraph poles yuan/piece 100 380V wooden telegraph poles yuan/piece 50 Transformers yuan/piece 20,000 Canals yuan/m2 150 Bridges yuan/piece 15,000 Highways yuan/m 100 Tractor plowing roads yuan/m2 80 Tombs yuan/piece 300 Underground structures yuan/m150 Water supply pipes yuan/m 150 Drainpipes yuan/m 150 Communication cables yuan/m 80 Power cables yuan/m 40 Lawns, parterres yuan/m2 60 Tapping pipes yuan/m 150 Pumped wells, large opening wells yuan/piece 2,000 Big trees (non fruit) yuan/piece 10

Small trees (non fruit) yuan/piece 6 Scattered fruit trees yuan/piece 30 Enclosure yuan/m2 26

4.7.5 Standards for other costs The standards for other costs are shown in Table 4-9.

Table 4-9 Tax Standards for Resettlement of the Subproject No. Item Charging standard Basis Wan Cai Nong Farmland occupation 1 2 yuan/m2 Cun [2008] tax No.367 Farmland reclamation Wan Cai Zong 2 7 yuan/m2 fee7 [2001] No.1061 Land acquisition 3 4% of total land acquisition expenses management fee Surveying, design and 4 3% of total land acquisition expenses research expenses Administrative 5 5% of total land acquisition expenses expenses Technical training 6 3% of total land acquisition expenses expenses External monitoring and 7 4% of total land acquisition expenses evaluation expenses 10% of the total amount of land acquisition expenses, design fees, implementation 8 Contingency expenses management fees, training and monitoring expenses

4.7.6 Vulnerable groups In addition to the above compensation policy for land acquisition, the vulnerable groups affected by the subproject are also entitled to some other preferential policies: (1) Vocational training will be given to the labor force in the households of vulnerable groups, and employment information and guidance will also be provided to increase their job opportunities; (2) During the construction of the subproject, the labor force in the households of vulnerable groups will be given priority to in the recruitment for unskilled jobs; (3) A special supporting fund will be set up in cooperation with the Tianchang Labor and Social Security Bureau to provide assistance at 1% of the resettlement expenses of the subproject. (4) When possible, replacement land should be arranged for vulnerable groups in the priority, if that is the desire of the AP. The detailed entitlements are shown in Table 4-10

4.7.7 Special measures for women In addition to the standard compensation policy for land acquisition, the women

7 70% of this money will be used to upgrade or reclaim marginal farmland in rural areas of Anhui, which will benefit poor people; this is the government’s uniform plan.

are also entitled the following special measures:: 1) Opportunities of prior employment are available, 30% of the unskilled job opportunities created by the Project will be provided to women. 2) The priority in receiving free technical training is available. 6,000 persons will be trained, with not less than 3,000 females (50%). 3) The affected women will be provided relevant information during resettlement, and will be encouraged to participate in consultation and resettlement activities. During the resettlement implementation, focus group discussions with affected women will be managed by the AHAB and local government officials to explain the regulations and improve women’s awareness. 4) Compensation agreement must be signed by both spouses. See details in Appendix 3 Gender analysis of women during resettlement.

4.8 Entitlement matrix

The entitlement matrix is established in accordance with the applicable policies in this chapter, as shown in Table 4-10.

Table 4-10 Entitlement matrix Type of Degree of impact Eligibility Compensation and resettlement policy Implementation issues impact 5 villages of Renhe Village meetings to be responsible Town, 2 villages of for deciding on the allocation of Tianchang 1) Land compensation, and compensation for collective properties funds, the redistribution of land and Sub-district and 2 will be paid directly to the village collective economic organization investment in income generating 793.1 mu, including 423 mu villages of Qinlan or village committee.(see the table 4-4) activities such as improved Permanent of paddy field, 203.1 mu of Town, Tianchang cultivation techniques/ irrigation/ land dry land, 2 mu of vegetable City small business development/ acquisition plots, 17 mu of housing sites, training. 94 mu of other land 1) Land compensation or land reallocation will be provided. 5,459 people out of 2) Resettlement subsidy will be paid Higher level authorities to approve 1,341 households 3)Ground annexes and crop compensation will belong to their and monitor village level proposals respective owners. (see the table 4-4) and, if required to facilitate training programs 1,639 people out of 1) For temporary land occupation for borrow pits, cash 296.1 mu in total, in which 404 households in compensation will be granted at a time; other temporarily occupied borrow pits will occupy 127.1 5 villages of Renhe land will be compensated for based on the period of occupation Notified in advance and paid Temporary mu; in terms of land type, Town, 2 villages of and the amount of loss, including crop compensation and accordingly. Restoration of land will land 173.43 mu of paddy field, Tianchang reclamation fee, with a maximum occupation period of 2 be monitored by the farmers and occupation 83.26 mu of dry land, 0.82 mu Sub-district and 2 years.(see the table 4-5) local land bureaus. of vegetable plots, 38.54 mu villages of Qinlan 2) After the end of land occupation, the land will be restored to the of other land Town, Tianchang original condition, and appropriate economic compensation will be City granted. 299 people out of 7,513m2 of houses will be 66 households in 2 1) House compensation: calculated at replacement costs of demolished, including Demolition villages of Renhe different structural types and quality standards 5,463m2 in the masonry of Town, 1 village of 2) The affected people will receive a moving subsidy and a Village and APs to decide on concrete structure, 2,547m2 residential Tianchang transition fee.(see the table 4-6) location of new residential plots. in the masonry timber houses Sub-district and 2 3)A housing plot will be allocated prior to house demolition structure and 148m2 in the villages of Qinlan 4) House registration fees are waived simple structure. Town Relocation 3 enterprises, with a house 37 people affected 1) House compensation is based on rebuilding prices.(see the

Type of Degree of impact Eligibility Compensation and resettlement policy Implementation issues impact of entities demolition area of 1,100m2; by relocation of table 4-7) one public institution, with a enterprises; 8 2) The compensation for immovable facilities and equipment is house demolition area of people affected by based on the former size and standards. 70m2, relocation of public institutions 3) Relocation subsidy and shutdown compensation are available. 1) Opportunities of prior employment are available, and 30% of unskilled job opportunities created by the Project will be provided to women. 2) The priority in receiving free technical training is available. 6,000 persons will be trained, with not less than 3,000 females Women’s federation will arrange All women in (50%). awareness education Women / affected 3) The affected people can have access to relevant information households during resettlement, and participate in consultation and Equal pay for equal work for men resettlement. During the resettlement implementation, focus group and women, no child labor discussions with affected women will be managed by the AHAB and local government officials to explain the regulations and improve women’s awareness. 4)Compensation agreement must be signed by both spouses 9 people out of 2 1) Special allowances provided for the disabled persons 1) Disabled persons households with 2 2) Priority of training and employment to labor force in these disabled persons households The households will be rechecked 1) Skill training will be provided to 2 family members, at least one during DMS and closely monitored 2) low-income or poor by female. until sustainable restoration is households (under the 95 people out of 2) Priority employment (such as outside jobs or work for the achieved national poverty line) 24 households Vulnerable Project construction) will also be provided groups 3) provided pension by local government 1% of total basic resettlement cost 1) Skill training will be provided to 2 family members, at least one has been budgeted for these 66 people of 15 by female. And Priority employment (such as outside jobs or work special measures, and this amount households both 3) seriously affected for the Project construction) will also be provided. could be increased using affected by land households 2) When possible, replacement land should be arranged as a contingencies. acquisition and priority if desired by the affected household. house demolition

Special 21 types, such as telegraph Property owner 1) The affected special facilities will be compensated for by the

Type of Degree of impact Eligibility Compensation and resettlement policy Implementation issues impact facilities and poles, trees implementing agencies to property owners, and then restored by ground property owners, or restored by the implementing agencies annexes according to the former standard and size.(see the table 4-8) 2) The compensation for ground annexes shall be calculated in accordance with the pertinent provisions. Complaints Free of charge. All costs reasonably incurred will be disbursed / All affected people and appeals from the contingency expenses of the subproject.

5 Resettlement and Income Restoration

5.1 Purpose of Resettlement

The purpose of resettlement of the subproject is to design a resettlement and restoration action plan for the people affected by the subproject, so that they benefit from the subproject, and their standard of living is improved or at least restored after the completion of the subproject.

5.2 Resettlement and restoration scheme for affected villages

5.2.1 Introduction of resettlement and restoration scheme for affected villages The main impact of the subproject is permanent land occupation mainly. The permanent acquisition of collective land involves 9 administrative villages of Qinlan Town, Renhe Town and Tianchang Sub-district, Tianchang City; 793.1 mu of collective land will be acquired, including 423 mu of paddy field, 203.1 mu of dry land, 2 mu of vegetable plots, 17 mu of housing sites and 94 mu of other land. Since the subproject involves road reconstruction in a linear distribution, most of the people affected by land acquisition will lose part of their land only, with a proportion of impact of less than 4%. Therefore, land acquisition has little impact on the agricultural production and income of the rural households (see Section 2.4.2 for the impact analysis of land acquisition). According to the sampling survey of the willingness for resettlement of 277 households, all affected households require cash compensation, and will use the compensation fees for business, crop cultivation, stockbreeding and skills learning mainly. In our field survey, almost all affected rural households welcome the subproject; the affected households think the subproject can improve the traffic conditions and make their production and life more convenient. All affected households require cash compensation for land acquisition, because this method is simple to operate. The affected rural households can use the compensation fees for production and livelihood restoration freely. The construction and land acquisition of the subproject will affect the villages to varying degrees. Therefore, the restoration plan is based on the degree of impact, the availability of the remaining land resources and the willingness of the affected people. Through adequate consultation with the village committee and the affected households during the social and economic survey, different economic restoration options have been defined. As discussed above, for most villagers, the impact of land acquisition is relatively low, and the degree of impact is even. After the land is acquired, the affected people still have a certain amount of land, so most of them prefer cash compensation. For the affected people, this method will ensure that all compensation and rights get to their hands fully and timely. 5.2.2 General strategy of restoration measures for permanent land acquisition The subproject involves permanent land occupation of 9 villages. The livelihood restoration measures for the displaced persons mainly include: a) Direct cash compensation: Determine the compensation standards for land acquisition and the amount of arable land lost in strict accordance with the applicable state and local policies, and pay compensation fees timely to the affected households directly. The compensation fees received by the affected households can be used to grow cash crops, develop household stockbreeding and to deal with nonagricultural

production activities. b) Improvement of agricultural production conditions: The village collectives will raise funds and use some of the compensation fees for the acquisition of the collective land for infrastructure construction in order to improve agricultural production conditions, increase the output of crops, increase farmers’ income indirectly and improve their standard of living, such as improvement of pumped wells, pump stations, pipelines and other irrigation facilities for farmland, improvement of drinking water facilities for villagers to solve their difficulty in domestic water supply, building village roads, and subsidizing widows. c) Agricultural restructuring: The villages will adjust their crop cultivation and stockbreeding structure using their geographic location and market conditions to increase agricultural income. For example, the 2 villages of Tianchang Sub-district can develop greenhouse vegetable cultivation, and Renhe Town may develop the large-scale breeding of 7-colored blackcock and pigeon for meat, etc. d) Labor transfer: The government may take some relevant measures to support the development of some individual enterprises, such as toy, apparel, machining and other labor-intensive enterprises, and create more job opportunities.

e) Endowment insurance of farmers affected by land acquisition: Eligible farmers affected by land acquisition8 may affect the endowment insurance of farmers affected by land acquisition voluntarily, as shown in Appendix 6.

In the meantime, during the construction of the subproject, the implementing agencies will take some assistance and supporting measures, including: a) During construction, the affected people will be arranged for labor service with priority, which will bring cash income to the affected people. b) All labor export projects within the affected county will give priority to the affected people for jobs in local industry or labor export (at-home work for industry). c) During the whole production restoration process, technical training can be organized for the affected people, such as training on the cultivation of cash crops and stockbreeding. Technicians from the agricultural and labor and social security authorities will be invited to give training on agriculture and cultivation in the affected areas, so that every affected rural household can receive at least one session of agricultural or nonagricultural technical training. These measures will serve to improve the quality and output of crops, increase the economic income of the affected people, and restore their livelihoods. 5.2.3 General strategy and measures for demolition of residential houses The subproject involves house demolition of 4 villages. Through preliminary survey and consultation, the displaced households will be resettled in the following ways: a) After cash compensation, the affected households will select a suitable housing site for self-demolition and self-building as they wish, chosen by 34 households (59.6%). b) By signing the agreement, the collectives will plan housing sites for

8 Generally, this means affected agricultural population not having the basic living and production conditions or with a per capita arable area of less than 0.3 mu after land acquisition. For farmers affected by land acquisition aged 60 or more for men or 55 or more for women, the pension received by everyone per month shall not be less than 80 yuan in principle paid by government, APs may contribute more voluntarily to increase their pension payments.

self-demolition and self-building in a unified manner, chosen by 23 households (40.4%). The willingness for demolition of residential houses and resettlement of rural residents is shown in Table 5-1.

Table 5-1 Willingness for Demolition of Residential Houses and Resettlement of Rural Residents Number of households b) Unified planning a) Selection of a housing of housing sites for Pile No. Town Village site for self-demolition self-demolition and Subtotal and self-building after self-building after cash compensation cash compensation K0+,000 Qinlan Town Zhuchang Village 2 0 2 -K2+700 K2+700 Wuzhuang Village 3 0 3 Renhe Town -K12+800 Renhe Community 4 20 24 K12+800 Tianchang Shuguang 25 3 28 -K15+640 Sub-district Community Total 34 23 57 Proportion 59.6% 40.4% 100.0%

5.2.4 Resettlement and restoration scheme for key villages In order to further make clear the impacts of the subproject and improve the effectiveness of resettlement, the relevant traffic authorities, town governments, administrative villages and villagers have been gathered to hold discussions based on the information provided by the feasibility study report. The impacts of the subproject, land acquisition and house demolition, and the next-step measures for economic restoration were discussed. Through the above impact analysis of land acquisition, all the 9 villages affected by the subproject involve the acquisition of collective land (but the proportion of impact of land acquisition is low (less than 4%)). In the meantime, Renhe Community, Wuzhuang Village, Shuguang Community and Shouchang Village are also affected by house demolition, so pertinent resettlement and restoration plans have been developed for these 4 relatively seriously affected villages. 1, Qinlan Town A. Shouchang Village Shouchang Village has 5,206 people out of 1,596 households, including 2,603 men and 3,606 laborers, an arable area of 230 mu, and a per capita arable area of 0.04 mu. The main crops are paddy rice and wheat. Since Shouchang Village is highly industrialized, the agricultural population is very small, and the basic sources of income of the villagers are industry and tertiary industries, with a per capita net income of 5,400 yuan. The subproject will acquire 5 mu of arable land of Shouchang Village permanently, accounting for 2.2% of total arable area, affecting 11 households and 59 people, accounting for 0.7% of the total number of households and 1.1% of the total population of the village respectively. Based on estimates, the annual average income loss resulting from land acquisition is 4,750 yuan, 431.8 yuan per household and 80.5 yuan per capita. There is little impact of land acquisition. After land acquisition, per capita arable area will still be 0.04 mu. 828m2 of residential houses will be demolished, affecting 14 people out of 2 households.

Figure 5-1 Residential Houses to Be Demolished  Measures for restoration of production income: Since Shouchang Village is highly industrialized, the villagers do no live on farming, and the arable area acquired is 5 mu only, 0.45 mu per capita, there is little impact on the income of the households affected by land acquisition, and only cash compensation is needed.  Resettlement measures for house demolition: The houses demolished in the subproject are already discarded and no longer occupied, the displaced households need cash compensation only. 2, Renhe Town A. Renhe Community Renhe Community has 3,768 people out of 1,232 households, including 2,185 men and 2,336 laborers, an arable area of 2,470 mu, and a per capita arable area of 0.65 mu. The main crops are paddy rice and wheat. Per capita net income of farmers is 4,610 yuan, in which agricultural income accounts for about 15%. The main source of income of farmers is employment. The subproject will acquire 95 mu of arable land of Renhe Community permanently, accounting for 3.8% of total arable area, affecting 395 people out of 105 households, accounting for 8.5% of the total number of households and 10.5% of the total population of the village respectively. Based on estimates, the annual average income loss resulting from land acquisition is 90,250 yuan, 859.5 yuan per household and 228.5 yuan per capita. After land acquisition, per capita arable area will be 0.63 mu. 3,095m2 of residential houses will be demolished, affecting 105 people out of 24 households. According to the survey, the affected households ask for equal distribution of the land compensation among the villagers before land replacement. Through consultation, the land compensation fees will be paid directly to the affected households. The possible resettlement and restoration measures for Renhe Community are as follows:  Measures for restoration of production income: a) Farmland improvement and production expansion: Renhe Community is located in hilly areas, with uneven and small-area arable plots, which is adverse to mechanized farming. By turning small fields into large fields at the single investment of about 1,500 yuan, the efficiency of mechanized farming will rise by 20%-30%. b) Employment training and increase of labor export: 70% of the income of the farmers in Renhe Community is from employment. The government and the village collective will provide employment training on electronic processing, toy manufacture and machine repair based on employment needs to improve labor skills and increase the amount of labor export.  Resettlement measures for house demolition: a) There is a new countryside planning point in the village, with three supplies and one leveling, and a full range of supporting facilities. The displaced households will be granted compensation fees for house demolition at replacement costs. The village collective will offer housing

sites at the new countryside planning point for self-building. b) Those who are unwilling to build a house at the new countryside planning point will be granted compensation for house demolition and housing site at replacement costs to buy a housing site and build a house themselves. B. Wuzhuang Village Wuzhuang Village has 1,891 people out of 499 households, including 964 men and 1,324 laborers, an arable area of 3,038 mu, and a per capita arable area of 1.6 mu. The main crops are paddy rice and wheat. Per capita net income of farmers is 4,340 yuan, in which agricultural income accounts for about 10%. There are over 20 enterprises in the village, mostly producing toys or processing plastic products. The main source of income of farmers is employment. The subproject will acquire 62 mu of arable land of Wuzhuang Village permanently, accounting for 2% of total arable area, affecting 157 people out of 39 households, accounting for 7.8% of the total number of households and 8.3% of the total population of the village respectively. Based on estimates, the annual average income loss resulting from land acquisition is 58,900 yuan, 1,510.3 yuan per household and 375.2 yuan per capita. After land acquisition, per capita arable area will be 1.57 mu. 130m2 of residential houses will be demolished, affecting 12 people out of 3 households.

According to the survey, the affected households ask for equal distribution of the land compensation among the villagers before land replacement. Through consultation, the land compensation fees will be paid directly to the affected households. The possible resettlement and restoration measures for Wuzhuang Village are as follows:  Measures for restoration of production income: a) Farmland improvement and production expansion: Wuzhuang Village is located in hilly areas, with uneven and small-area arable plots, which is adverse to mechanized farming. By turning small fields into large fields at the single investment of about 1,500 yuan, the efficiency of mechanized farming will rise by 20%-30%. b) Capital introduction and increase of job opportunities: The construction of the road will make the local traffic more convenient, and create favorable conditions for capital introduction. The village collective will continue to introduce capital and investment, and attract more enterprises to Wuzhuang Village to further absorb labor and develop the economy. c) Agricultural restructuring and development of aquiculture: Water regions will be utilized to produce aquatic products such as fish, prawns and crabs. The annual investment in per mu of fishpond is about 1,000 yuan, and net income about 1,000 yuan, nearly double the net income from crop cultivation.  Resettlement measures for house demolition: The houses to be demolished of the 3 displaced households are attached simple houses. These households will be granted cash compensation for self-demolition and self-building by the villagers. 3, Tianchang Sub-district A. Shuguang Community Shuguang Community has 4,823 people out of 1,367 households, including 2,363 men and 2,946 laborers, an arable area of 5,994 mu, and a per capita arable area of 1.24 mu. The main crops are paddy rice and wheat. Per capita net income of farmers is 4,200 yuan, in which agricultural income accounts for about 20%. There are 38 enterprises in the community, dealing with steel processing and transfusion tube

production, etc. The main source of income of farmers is employment. The subproject will acquire 210 mu of arable land of Shuguang Community permanently, accounting for 3.5% of total arable area, affecting 1,734 people out of 439 households, accounting for 32.1% of the total number of households and 36% of the total population of the village respectively. Based on estimates, the annual average income loss resulting from land acquisition is 199,500 yuan, 454.4 yuan per household and 115 yuan. After land acquisition, per capita arable area will be 1.20 mu. 130m2 of residential houses will be demolished, affecting 12 people out of 3 households. According to the survey, the affected households ask for equal distribution of the land compensation among the villagers before land replacement. Through consultation, the land compensation fees will be paid directly to the affected households. The possible resettlement and restoration measures for Shuguang Community are as follows:  Measures for restoration of production income: a) Improvement of low and medium yield fields: Shuguang Community has 2,000 mu of low and medium yield fields. The villagers will use the land compensation fees to improve these fields. Based on estimates, the investment per mu is about 3,000 yuan. After improvement, the annual income per mu from will rise by about 200 yuan. b) Restructuring of crop cultivation: Rape and other vegetables will be introduced. Compared to cereal crops like paddy rice and wheat, income per mu is expected to rise by 500 yuan. c) Capital introduction and increase of job opportunities: There is already a good foundation of capital introduction in Shuguang Community. The subproject will provide more convenient traffic conditions. The village collective plans to utilize this favorable opportunity to increase the scale of capital introduction, and provide more job opportunities to the villagers.  Resettlement measures for house demolition: The houses to be demolished are mainly simple houses close to the road other than main houses. These houses are far away from the existing road, and there is sufficient room around them. To reduce the impact of the road on the living environment, these houses will be set back locally.

5.3 Resettlement scheme for entities

In the subproject, 4 entities will be relocated, with a demolition area of 1,170m2, affecting 45 people. There are 3 enterprises, with a demolition area of 1,100m2, affecting 37 people; one public institution, with a demolition area of 70m2, affecting 358 people. Among the 3 enterprises, the supply and marketing cooperative of Renhe Town has been closed down and involves no affected population, while the demolition of some storage rooms of the remaining 2 enterprises will not affect their normal operation and employees. All the 3 enterprises are subject to cash compensation. The affected public institution is the Animal Epidemic Prevention Station of Tianchang Sub-district, where one office room will be demolished. Its normal operation will not be affected. Cash compensation will be granted.

Table 5-2 Summary of Modes of Resettlement of Affected Entities Business Mode of Pile No. Town Address Nature Degree of impact entity resettlement Demolition of some K2+700 Renhe Lulong Grain Lulong Cash Enterprise office and storage -K12+800 Town Supply Station Community compensation rooms, not affecting

Business Mode of Pile No. Town Address Nature Degree of impact entity resettlement normal operation Supply and Renhe Cash marketing Enterprise Already shut down Baima cooperative compensation Demolition of a small Chengdong Shuguang part of storage Cash Enterprise Toy Factory Community rooms, not affecting compensation K12+800 Tianchang normal operation -K15+640 Sub-district Animal Epidemic Shuguang Public Demolition of one Cash Prevention Community institution office room compensation Station

5.4 Training for displaced persons

Training needs will be identified based on the preference of APs for livelihood income restoration options (see section 5.2.2). To ensure that the displaced persons alter the traditional concept of employment, build up correct professional awareness and master necessary labor skills, the implementing agencies will appropriate special funds for resettlement training. The PMO will provide resettlement training in conjunction with the affected labor and social security authorities, including agricultural technical training, pre-job training and vocational skills training. The agricultural technical training covers fruit tree cultivation and stockbreeding techniques. The pre-job training covers the employment situation, the national employment policies, the protection of labor rights and interests, and professional ethics; the vocational skills training will be held irregularly based on job needs, and include nonagricultural technical training mainly. The general training program is shown in Table 5-3 and will be revised in the updated RP.

Table 5-3 Technical Training Program for Displaced Persons Fund arrangement No. Time Subjects Participants Scope of training (10,000 yuan) Affected Agricultural technical 1 Jun. 2010 2,000 15 households training Affected 2 Dec. 2010 2,000 Pre-job training 15 households Affected Vocational skills training 3 Jun. 2011 2,000 15 households (nonagricultural) 4 Other irregular technical training 20

A training plan will be formulated by each seriously affected village with guidance from county/township labor bureau/office and ACWF, and the training subsidies will come from the training budgets.

5.5 Protection of women’s rights and interests

At the preparation stage of the Resettlement Plan, the survey team organized women to participate in the impact survey of the subproject, and consulted them about their ideas for the income restoration plan. Women approve of the subproject and think the subproject is good to traffic improvement and land acquisition has little impact on their livelihoods. They expect cash compensation, employment in the subproject and training on crop and fruit tree cultivation, and stockbreeding techniques.

Aiming at the willingness of women, 30% of women will get unskilled job opportunities at the implementation stage. In addition, the principle of equal pay for equal work will apply to both men and women. However, use of child labor is prohibited. The affected female labor will be given priority to in technical training to ensure their economic position and income will not be affected. 6,000 persons will receive resettlement training, with not less than 3,000 females (50%). Meanwhile, they can have access to relevant information during resettlement, and participate in consultation and resettlement. During the resettlement implementation, focus group discussions with affected women will be managed by the AHAB and local government officials to explain the regulations and improve women’s awareness. The compensation agreement will be signed by both spouses. See details in Appendix 3- Gender analysis of women during resettlement.

5.6 Assistance measures for vulnerable groups

According to the survey, the main vulnerable groups affected by the Project are the disabled and low-income persons and households seriously affected by the Project. .According to the survey,125 people out of 32 households among the people affected by land acquisition fall into vulnerable groups. During the whole relocation process, the PMO, the implementing agencies and local governments will pay particular attention to the resettlement of the vulnerable groups. The Anhui PMO has set up a special fund to support the vulnerable groups at 1% of the basic resettlement expenses, namely 349,000 yuan. They will not only be resettled for livelihood and production according to the implementation plan of the subproject, but also be provided certain assistance to improve their living and production conditions. The key measures are as follows: 5.6.1 Measures for the Disabled 1) Special allowances will be provided to the Disabled 2) The training and employment is as a priority to labor force in these households 5.6.2 Measures for low-income or poor households 1) Skill training will be provided to 2 family members, at least one by female. 2) Priority employment (such as outside jobs or work for the Project construction) will also be provided. 3) The pension will be provided by local government 5.6.3 Measures for seriously affected households 1) Skill training will be provided to 2 family members, at least one by female. 2) Priority employment (such as outside jobs or work for the Project construction) will also be provided. 3) When possible, replacement land should be arranged as a priority.

5.7 Restoration schemes for temporarily occupied land

Temporary land occupation involves sand and stone yards, borrow pits, blending plants, spoil grounds, and production, living areas and roads occupied temporarily during construction, with a total area of 296.05 mu. The land area occupied temporarily for borrow pits is 133.2 mu. Through extensive consultation with the affected rural households, rural collective land occupied temporarily may be restored by the rural households, village collectives or implementing agencies. The restorer will be agreed on by representatives of the affected rural households, the village collectives and the implementing agencies. To reduce the impact of land acquisition

on young crops, the subproject will be usually constructed after harvest or before seeding, and a prior notice will be given to the affected households to reduce their losses.

5.7.1 Restoration scheme for land occupation for borrow pits

The temporary land occupation for borrow pits will be at several central points. In order to minimize the occupation of arable land, borrow pits will be located in mountains and non-arable areas; if occupation of arable land is unavoidable, borrow pits will be located in low-lying land and derelict land with bad soil quality and low output value. The restoration options for temporary land occupation include:  Borrow pits can be connected to the local canal system as ponds for agricultural irrigation. This will minimize the impact on agricultural production, and make it easy to drain farmland and mitigate the hazard of inland inundation, improving overall agricultural output value indirectly.  According to the willingness of the affected people, borrow pits can also be used as fishponds for aquaculture or lotus roof cultivation, whose output value will be higher than that of crop cultivation.  Borrow pits can be turned into garbage landfills to improve the rural sanitary environment in conjunction with the program of “building a new socialist countryside”. At the present feasibility study stage, the specific positions of borrow pits have not been determined yet. After the detailed design, the restoration option will be determined as the case may be. In addition, land used for borrow pits will be compensated at the standards for permanent land acquisition, and such compensation is greater than the actual loss of arable land. Through a combination of the above measures, borrow pits will have almost no adverse impact to the villagers.

5.7.2 Other restoration schemes for temporarily occupied land During construction on temporarily occupied land, strict measures will be taken to protect surface soil and avoid any irrecoverable impact. During excavation, surface soil (recommended thickness 30-50cm) will be collected and piled up separately, and soil loss prevention measures will be taken. After construction, subsurface soil will be backfilled first, and then surface soil will cover the surface evenly, and the site will be leveled to alleviate the impact on the quality of arable land. Temporarily trampled land during construction will harden and should be plowed immediately after construction to restore its looseness. The field irrigation and drainage canals, facilities and plowing roads will also be restored to ensure the basic requirements for farmland irrigation can be met after reclamation. The compensation for temporary occupation of rural collective land is greater than the actual loss of arable land, and the villagers’ livelihoods will not be affected.

5.8 Restoration scheme for infrastructure

The affected special facilities and ground annexes will be compensated for by the implementing agencies to property owners, and then restored by property owners. The restoration measures for demolished facilities must be planned in advance. In practice, these measures should be tailored to practical conditions, be safe, efficient, timely and accurate, and minimize adverse impacts on the nearby residents. For the affected municipal public facilities, the demolition agency should act on the construction drawings of the subproject, and minimize demolition without affecting construction. The demolition agency should rebuild (or relocate) the affected pipelines before demolition without affecting the regular lifestyle of the residents along the route

(including those not to be relocated). In addition, for the production and living facilities (canals mainly) affected by the subproject, the design agency conducted an extensive survey of the subproject’s possible impacts on the production and livelihoods of the local residents in the form of discussion and questionnaire survey at the survey and design stage to collect opinions from the local people’s governments, competent authorities, social organizations and local residents. These opinions have been mostly embodied in the project design. Based on field exploration, the design agency took appropriate engineering measures for the affected production and living facilities at the design stage. For example, for canals disconnected due to highway occupation, culverts will be built in the roadbed or new exposed canals parallel to the highway built within the protected area of the roadbed; canals damaged by construction will be repaired after the completion of the subproject. Canals will be built by the construction team or by villagers in a compensated manner. All these costs have been included in the general budget of the subproject, and are no longer listed in the budgetary estimate in this report.

6 Resettlement Organization

6.1 Management agencies for resettlement implementation

6.1.1 Organizational setup To ensure that resettlement is carried out successfully and the expected results are fulfilled, a top down organization must be set up at the implementation stage to plan, coordinate and monitor resettlement activities. Since resettlement is a very comprehensive task that necessitates the assistance and collaboration of multiple departments, the communications, land and resources, and finance authorities will participate and assist in the implementation of resettlement. Each of the affected towns and villages has 1-2 leaders responsible chiefly for the assistance in resettlement. The agencies responsible for land acquisition and house demolition in the subproject include:  APCD Foreign-funded Project Management Office  AHAB  Municipal/county (including county-level municipal) highway administration bureaus (headquarters)9  Town people’s governments  Village committees (neighborhood committees)  Project design agency  Independent monitoring and evaluation agency  Other agency: Land Resource Bureau, House Demolition Office, Women’s Federation and Labor Bureau, etc.

6.1.2 Responsibilities of agencies  APCD Foreign-funded Project Management Office Responsible mainly for organizing the resettlement of the subproject, formulating policies on resettlement activities of the subproject, coordinating relations among all levels of the resettlement organization, and serving as a bridge between ADB and the implementing agencies  AHAB Responsible mainly for handling day-to-day affairs in resettlement planning and implementation, and exercising the management, planning, implementation, coordination, supervision and monitoring functions of resettlement as the project management agency: Formulating the land acquisition, house demolition and resettlement policies for the subproject; Entrusting the design agency to define the affected areas, measure the data on physical objects affected by land acquisition and house demolition, and save such data; Applying for the license for planning of land use and the license for land used for construction; Giving operational training to the key resettlement officials of the land acquisition, house demolition and resettlement office;

9 A construction headquarters will be set up for the subproject based on the highway administration bureau and in conjunction with the land and resources bureau, finance bureau, auditing bureau, demolition office, communications bureau and construction bureau to be responsible for resettlement.

Organizing and coordinating the preparation and implementation of the Resettlement Plan; Responsible for the management and disbursement of the resettlement funds, and supervising the use thereof; Directing, coordinating and supervising resettlement activities and their progress; Directing and assisting in the disposition of complaints; Taking charge of and inspecting internal monitoring, and preparing land acquisition, house demolition and resettlement progress reports; Selecting the external monitoring agency and assisting in external monitoring activities  Municipal/county (including county-level municipal) highway administration bureaus (headquarters) Assisting the design agency in defining the affected areas, measuring the data on physical objects affected by land acquisition and house demolition, and saving such data; Assisting in preparing the Resettlement Plan and responsible for the implementation of resettlement; Selecting key resettlement officials for operational training; Organizing public consultation, and propagandizing the resettlement policies; Directing, coordinating and supervising resettlement activities of the agencies related to land acquisition, house demolition and resettlement and their progress; Responsible for resettlement, paying resettlement expenses pursuant to the agreement, and handling complaints from displaced persons; Implementing internal monitoring activities, preparing internal monitoring reports, and reporting to AHAB regularly; Assisting in external monitoring activities.  Town people’s governments The town resettlement organization is headed by the leader responsible of each town, and composed of key officials of the land and resources office, the police office, the civil affairs office and the villages. Its main responsibilities are: Participating in the survey of the subproject, and assisting in the preparation of the Resettlement Plan; Organizing public participation, and propagandizing the resettlement policies; Implementing, inspecting, monitoring and recording all resettlement activities within the town; Responsible for the disbursement and management of land compensation fees; Supervising the acquisition, occupation and restoration of land; Reporting land acquisition and resettlement information to the county highway administration bureau; Coordinating and handling conflicts and issues arising from its work.  Village committees (neighborhood committees) The resettlement working team of a village committee is composed of its key officials. Its main responsibilities are: Participating in the social and economic survey and the impact survey of the subproject; Organizing public consultation, and propagandizing the policies on land acquisition and house demolition;

Organizing the implementation of resettlement activities for agricultural and nonagricultural production; Reporting the displaced persons’ opinions and suggestions to the competent authorities; Providing assistance to displaced households with difficulties.  Project design agency At the planning and design stage, it will survey the physical indicators of land occupation and house demolition, the environmental capacity, the usable resources, etc. accurately, and assist the governments in the affected areas in formulating resettlement plans, preparing budgetary investment estimates for compensation for land occupation and house demolition, and drawing the relevant drawings. At the implementation stage, it will submit the design documents, technical specifications, drawings and notices to the employer timely, make design disclosure to the project management offices of all levels, assist in the implementation of the relocation and resettlement for production of the displaced persons, and improve the resettlement plans based on the practical situation.  Independent monitoring and evaluation agency The employer will employ a qualified monitoring and evaluation agency as the external resettlement monitoring and evaluation agency. Its main responsibilities are: 1) Observing all aspects of resettlement planning and implementation as an independent monitoring and evaluation agency, monitor and evaluate the resettlement results and the social adaptability of the displaced persons, and submit resettlement monitoring and evaluation reports to ADB through the PMO; and 2) Providing technical advice to the PMO in data collection and processing.

6.2 Staffing and facilities

6.2.1 Staffing For the successful implementation of resettlement, all levels of the resettlement organization of the subproject have been staffed with dedicated personnel, and a smooth information communication channel created. The staffing of all levels of the resettlement organization is shown in Table 6-1.

Table 6-1 Staffing of Resettlement Agencies Agency Staff Composition APCD 4 Civil servants AHAB 2 Civil servants, technicians Municipal/county (including county-level municipal) highway 3 Civil servants, technicians administration bureaus (headquarters) Cadres and representatives of displaced Affected towns and villages 4-6 persons External monitoring agency 4 Resettlement experts

6.2.2 Facilities All levels of the resettlement organization can make use of the existing resources. The basic office, traffic and communication equipment is already available, including office desks and chairs, computers, printers, telephones, facsimile machines, means of transport, etc. 6.2.3 Institutional training program To ensure the successful implementation of resettlement, the displaced persons and the resettlement personnel must be trained under a training program, which will

be developed by the PMO and AHAB. A training and human resources development system has been established for the resettlement organization at the municipal, county, town and village levels. Training will be conducted in diverse forms, including expert lecture, technical training courses, visiting and learning from other resettlement projects, and field training of technical and management personnel. The training program is shown in Table 6-2. The scope of training includes: —ADB resettlement policies and principles; —The differeces between the provisions of the ADB Policy and PRC Laws, and Policy implementation —Management of design and implementation of the Resettlement Plan; —Points for attention during the implementation of resettlement; —Resettlement monitoring and evaluation

Table 6-2 Resettlement Training Schedule Fund Training Time Location Subjects Scope (10,000 method yuan) Resettlement Jun 2010 Hefei Lecture Resettlement staff 15 operational training Learning and Backbone staff of Field visit of ADB Dec 2010 Domestic 15 inspection PMO resettlement projects Exchange and Exchange and discussion on Jun 2011 Hefei Resettlement staff 9.9 lecture experience and existing issues in resettlement

In addition, the following measures will be taken in the subproject to improve the capabilities of the resettlement organization: (1) Define the scope of responsibilities of all levels of the resettlement organization, and strengthen supervision and management; (2) Improve the strength all levels of the resettlement organization gradually, especially specialized technical forces; all personnel must attain a certain degree of professional proficiency and management level; strengthen their technical equipment, such as computers, monitoring equipment and means of transport; (3) Selecting personnel strictly, strengthen operational and technical training, and train the management and technical personnel of all levels of the resettlement organization to improve their professional proficiency and management level; (4) Appoint female officials appropriately and give play to their role in the implementation of resettlement; (5) Establish a database, strengthen information feedback, and ensure the smooth top-down and bottom-up communication of information; leave major issues will be resolved by the resettlement leading group; (6) Strengthen the reporting system and internal monitoring, and solve problems timely; and (7) Establish an external monitoring and evaluation mechanism, and a pre-warning system.

7 Public Participation, Complaints and Appeals

7.1 Public participation

According to the policies and regulations of ADB, the PRC and Anhui Province on land acquisition, house demolition and resettlement, in order to protect the lawful rights and interests of the displaced persons, reduce disputes and complaints, listen to the displaced persons’ opinions and advice, and further improve the policies and implementation rules on land acquisition and resettlement and the Resettlement Plan of the subproject, and organize implementation properly so as to realize the goal of resettling the displaced persons properly, it is necessary to conduct public participation at the preparation and implementation stages of the subproject. 7.1.1 Participation at the preparation stage Since December 2008, under the direction of the technical assistance and consultation experts, the survey team of Anhui Communications Vocational and Technical College (ACVTC) and Hohai University has conducted a series of social and economic surveys and public opinion consultations (with 30% being women). At the preparation stage, the PMO, the implementing agencies and the design agency conducted extensive consultation on land acquisition and resettlement. The participation activities at the preparation stage are shown in Table 7-1. The minutes of the public participation meeting are shown in Appendix 2. The resettlement Information Booklets (RIBs) are to be handed out in June 2009.

Table 7-1 Public Participation at the Preparation Stage Date Organizer Participants Number Purpose Key opinions and details  Introduction to the background and objectives Anhui Provincial Affected of the subproject Aug. Feasibility study, Communications people, village  Minimizing the occupation – field visit, Planning, officials, 120 of arable land in site Nov. preliminary impact Survey and engineering selection 2008 survey Design Institute technicians  Minimizing impacts on the displaced persons in road routing  Assistance in the impact survey Government Preparation for the  The villagers’ Dec. departments Resettlement representatives express a 2008 ACTVC concerned and 650 Plan, impact and strong need for the –Feb. villagers’ social and subproject 2009 representatives economic surveys  Social and economic survey and displaced households survey  Consultation of Government compensation and income Hohai departments Preparation for the Mar. restoration plans University, concerned and 170 income restoration 2009  Canal restoration plan ACTVC villagers’ plan  Restoration measures for representatives borrow pits, etc. Disclosure of the Affected  Disclosure of Jun Resettlement Plan APCD PMO people, villager compensation standards, 2009 or information teams appeal channel, etc. booklet Publication of the Jul ADB website draft Resettlement 2009 Plan

7.1.2 Participation plan for the implementation stage With the progress of preparation and implementation, the implementing agencies will conduct further public participation. The public participation arrangements are shown in Table 7-2.

Table 7-2 Public Participation Program of the Subproject Purpose Mode Time Unit Participants Topic Anhui PMO, Highway Bureau, Village Land & Resources Disclosure of land bulletin Bureau; affected acquisition area, Bulletin on land All affected board and Sep 2009 county’s highway compensation acquisition people village bureau and land & standards and modes of meeting resources bureau, resettlement, etc. town and village officials Anhui PMO, Highway Bureau, Bulletin on Village Land & Resources compensation bulletin Bureau; affected and All affected Compensation fees and board and Sep 2009 county’s highway resettlement people mode of payment village bureau and land & plan for land meeting resources bureau, acquisition town and village officials Anhui PMO, Check for omissions, Highway Bureau, and confirmation of the Land & Resources final quantities affected Recheck of Bureau; affected Detailed list of occupied Sep. –.Dec All affected physical Field survey county’s highway land and losses of the 2009 people indicators bureau and land & displaced persons resources bureau, Preparation of the basic town and village compensation officials agreement Anhui PMO, Highway Bureau, Determination Land & Resources Village Discussion of the final and Before Bureau; affected meeting All affected income restoration plan implementation implement county’s highway (many people and the plan for use of of income -ation bureau and land & times) compensation fees restoration plan resources bureau, town and village officials Three Local land & months Housing plots Village resources bureau, All affected before / selection meeting town and village people house officials demolition June Local labor Village All affected Discussion of training Training plans 2010~June bureau, town and meeting people needs 2011 village officials 1) resettlement progress and impacts Dec, Village town and village All affected 2) compensation Monitoring 2009~Jan participation officials people disbursement 2013 3) information disclosure

Purpose Mode Time Unit Participants Topic 4) livelihood restoration and housing relocation

7.2 Complaints and appeals

Public participation is encouraged throughout the preparation and implementation of the Resettlement Action Plan. Therefore, it is likely that great disputes will not arise. However, some unexpected issues may arise from this process. In order to address such issues and ensure the successful construction and land acquisition of the subproject, a transparent and effective appeal channel has been established. The basic procedure is as follows: Stage 1: If any right of any displaced person is infringed upon in any aspect of land acquisition and resettlement, he/she can report this to the village committee. Either the committee or the displaced person may seek for a solution from the town government through consultation. After receipt of an appeal, the town government will record it, and study a solution together with the committee and the displaced person within 2 weeks. Stage 2: If the complainant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the Tianchang Highway Administration Bureau (Headquarters) after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the complainant is dissatisfied with the disposition of Stage 2, he/she may file an appeal to AHAB after receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: f the complainant is still dissatisfied with the disposition of AHAB, he/she may file an appeal to the administrative authorities with competent jurisdiction level by level for arbitration in accordance with the Administrative Procedure Law of the People’s Republic of China after receiving such disposition. Stage 5: If the complainant is still dissatisfied with the arbitration award, he/she may bring an action to a civil court in accordance with the Administrative Procedure Law after receiving such award. All agencies concerned will accept the affected people’ complaints and appeals free of charge, and all costs reasonably incurred will be disbursed from the contingency expenses of the subproject. At the whole construction stage, this appeal procedure will remain effective so that the affected people can use it to solve relevant issues. The above appeal channel and the right of appeal will be notified to the displaced persons through the participation process at a public meeting and the resettlement information booklet. In the meantime, appeal proceedings will be published to the affected population people through media.

8 Resettlement Budget

8.1 Resettlement budget

Based on prices of December 2008, the total resettlement expenses of the subproject are 48.578 million yuan, including expenses for the acquisition of rural collective land of 12.952 million yuan, accounting for 26.7% of total expenses; compensation for temporary land occupation of 3.783 million yuan, accounting for 7.8%; compensation for demolition of rural residential houses of 2.043 million yuan, accounting for 4.2%; compensation for entities of 420,000 yuan, accounting for 0.9%; compensation for infrastructure and ground annexes of 15.721 million yuan, accounting for 32.4%; and taxes and management fees of 13.659 million yuan, accounting for 28.1%. he summary resettlement expenses are shown in Table 8-1. The basis of the budget estimated is explained in section 4.7 See detailed resettlement budget in Appendix 7. Table 8-1 Budget of Resettlement Expenses Expense No. Item (10,000 Proportion Remarks yuan) 1 Collective land 1295.2 26.7% 1.1 Land compensation 789.9 16.3% 1.2 Resettlement subsidy 473.9 9.8% 1.3 Crop compensation 31.4 0.6% 2 Temporary land occupation 378.3 7.8% Temporary land occupation for 2.1 140.1 2.9% borrow pits Based on 2 2.2 Other temporary land occupation 135.2 2.8% years 2.3 Land reclamation fee 103.0 2.1% 3 Rural residential houses 204.3 4.2% 3.1 Housing compensation 184.8 3.8% 3.2 Other compensation 19.5 0.4% 4 Compensation for entities 42.0 0.9% 4.1 Housing compensation 40.2 0.8% 4.2 Simple structure 1.8 0.0% 5 Ground annexes 1572.1 32.4% Total of Items 1-5 3491.9 71.9% Land acquisition management 6 51.8 1.1% fee Surveying, design and research 7 104.8 2.2% expenses 8 Administrative expenses 174.6 3.6% 9 Technical training expenses 104.8 2.2% External monitoring and 10 139.7 2.9% evaluation expenses 11 Subsidy for vulnerable groups 34.9 0.7% Sum of Items 12 Contingency expenses 410.2 8.4% 1-11 13 Land acquisition taxes 345.2 7.1% Total of items 6-13 3449.6 49.7% Total expenses 6945 100.0%

8.2 Resettlement investment plan and sources of funds

The sources of the resettlement funds are counterpart funds from local finance and domestic loans. Before construction or during implementation, the investment plan will be implemented in stages in order not to affect the production and living conditions of the rural households affected by land acquisition, as shown in Table 8-2.

Table 8-2 Resettlement Investment Plan of the Subproject Year 2009 2010 2011 Total Investment (10,000 yuan) 2428.9 1943.1 485.8 4857.8 Proportion 50% 40% 10% 100%

8.3 Management and disbursement of resettlement funds

The land compensation and the resettlement subsidy will be used in adequate consultation with the villagers’ opinions; the crop compensation will be paid to the affected people directly; the compensation fees for infrastructure and annexes will be paid to the entities and individuals concerned. To ensure that the resettlement funds are in place timely and fully, and to ensure the restoration of the production, livelihoods and income level of the affected rural households, the following measures will be taken:  All expenses related to resettlement will be included in the general budget of the subproject;  The land compensation and the resettlement subsidy will be paid up before land acquisition so that all affected people can be resettled properly;  House demolition compensation will be paid 50% to the APs after signing the agreements ,and the rest will be paid when the demolition completed.  To ensure the successful implementation of land acquisition and resettlement, and to ensure that all funds are disbursed on schedule, all levels financial and supervisory organization will be established; and  The budget is an estimate of the resettlement costs. Due to practical variations in the affected areas, practical impacts of DMS (Detailed Measurement Survey), modifications to compensation, inflation and other factors, the actual expenses may be increased, but the implementing agencies will surely disburse the compensation fees. The budget has taken contingency expenses into account, and will be used and modified as necessary. These costs will be revised in updated RP.

9 Resettlement Implementation Plan

9.1 Principles for resettlement implementation

According to the implementation schedule of the subproject, the construction works will commence in 2009 and be completed in 2011. To ensure that the resettlement schedule is linked up to the construction schedule, land acquisition will start from December 2009 and end in December 2011. The basic implementation principles of resettlement are:  Land acquisition should be completed 3 months before the commencement of construction. The specific time of commencement should be determined as necessary for land acquisition, house demolition and resettlement.  During resettlement, the affected people should have opportunities to participate in the subproject. Before the commencement of construction, the scope of land acquisition will be disclosed, and a resettlement information booklet will be distributed for the purpose of public participation.  All types of compensation should be paid to property owners directly in full within 3 months from the date of approval of the land acquisition compensation and resettlement plans. No entity or individual should use the compensation fees for properties on their behalf, and such fees should not be discounted during disbursement for any reason.

9.2 Schedule for resettlement implementation

The overall progress plan for resettlement shall be developed based on the progress of land acquisition. However, this schedule shall be adjusted accordingly if the overall progress deviates. Details are shown in Table 9-1. Table 9-1Implementation Schedule of Resettlement Responsible No. Resettlement Tasks Target Timing Status Agency 1 Disclosure 1.1 Information booklets 9 AVs PMO & AHAB 30 June 2009 1.2 RPs posted on ADB websites IA, PMO & ADB July 2009 2 Resettlement Plans & Budgets 2.1 Approval of RP & budgets (and CNY48.578mill APG and PMO July 2009 compensation rates) ion 2.2 Village rehabilitation plans 9 villages VCs Dec. 2009 2.3 Update RP after design/DMS / IA and PMO Jan. 2010 3 Detailed Measurement Surveys (DMS) 3.1 S312 AHAB 30 Nov. 2009 4 Compensation Agreements 4.1 Village land agreements 9 villages LRBs 28 Feb. 2010 4.2 Household land agreements 1341 AFs VCs 30 June 2010 4.3 House/property agreements 57 AFs LRBs Mar.-Nov. 2010 5 House Relocation 5.1 Selection & approval of sites 57 AFs Town, VCs & AFs Aug.-Dec. 2009 5.2 Site infrastructure preparation 4 sites Town & VCs Mar~Oct. 2010 5.3 House demolition 57 houses Contractor/AFs Mar.-Aug. 2010 5.4 New house construction 57 houses VC or AFs Mar.-Dec. 2010 5.5 Moving into new houses 57 AFs AFs July-Dec. 2010 6 Implementation of Rehabilitation Measures 6.1 Land compensation payments to AFs and land adjustment (where 9 villages Towns & VCs Mar.-June 2010 applicable) 6.2 Implement village rehabilitation 9 villages VCs Jan.-Dec. 2010

Responsible No. Resettlement Tasks Target Timing Status Agency plans 6.3 Advice for income restoration, Towns, VCs, 1341 AFs Apr.-Aug. 2010 starting business & jobs Labor, ACF 6.4 Implement Training programs 1341 AFs Labor Offices May-Dec. 2010 6.5 Identify vulnerable AF and Labor & Social ~200 AFs Feb.-June 2010 implement support measures Security, PMO 6.6 Identifying and hiring AF for PMO, Labor, Apr. 2010 to Dec. ~1500APs project construction contractors 2012 7 Resettlement Capacity Building 7.1 Training for AHAB & LRB 10 people ADB Dec. 2009 7.2 Training for county & town officials 50 officers and PMO and LRB Jan.-Feb. 2010 and village leaders leaders 8 Monitoring & Evaluation 8.1 Baseline surveys One RP Monitor 31 Dec. 2009 8.2 Set-up internal supervision As per RP PMO & IA 31 Dec. 2009 8.3 Contract external monitor One PMO 30 Nov. 2009 8.4 Quarterly (as Commencing Internal monitoring reports PMO & IA required) 31 Mar. 2010 8.5 July 2010 1st Report External monitoring reports Semi-annual Monitor Jan. 2011 2nd Report July 2011 3rd Report 8.6 Jan. 2012 1st Report External evaluation reports Annual Monitor Jan. 2013 2nd Report 8.7 Resettlement Completion Reports One Report IA & PMO June 2013 9 Documentation of Consultation IA Ongoing 10 Documentation of Grievances IA Ongoing 11 Flow of Land Compensation and Resettlement Funds 11.1 - To IA Initial funds Feb. 2010 11.2 - To villages Most of funds IA Mar.-June 2010 11.3 - To households Most of funds IA, VCs Mar.-Aug. 2010 12 Commence Land Acquisition and Civil Works 12.1 S312 AHAB 31 Mar. 2010 AF=affected family; AP=affected person; AV=affected village; IAs=Implementing Agencies; APG=Anhui Province Government; PMO=Project Management Office.; AHAB=Anhui Highway Administration Bureau; LAR=land acquisition and resettlement; RIB=resettlement information booklet; RP=resettlement plan; VC=village committees.

10 Monitoring and Evaluation

To ensure the successful implementation of the Resettlement Plan and realize the goal of resettling the displaced persons properly, the implementation of the land acquisition, house demolition and resettlement activities of the subproject will be monitored and evaluated regularly as required by the ADB resettlement policies, including internal and external monitoring.

10.1 Internal monitoring

The internal monitoring agency of the subproject is APCD. Internal monitoring will be executed jointly by AHAB and other competent authorities (e.g., land and resources bureau). The PMO will prepare a detailed internal monitoring plan for the land acquisition and resettlement activities of the subproject. The scope of monitoring includes: (1) The survey and coordination of and suggestions for key issues of the displaced persons and the implementing agencies during implementation; (2) The restoration level of the household income of the displaced persons after land acquisition; (3) The resettlement and restoration level of the displaced persons after house demolition; (4) The restoration and resettlement of the vulnerable groups in the population affected by land acquisition and house demolition; (5) The disbursement, use and availability of the compensation fees for land acquisition and house demolition; (6) The degree of participation and consultation of the rural households affected by land acquisition and house demolition during implementation; (7) Resettlement training and its results; and (8) The management agencies for resettlement implementation in the affected areas, the training and working efficiency of the implementation personnel. The APCD Foreign-funded Project Management Office (PMO) will submit an internal monitoring report to ADB quarterly. In such reports, the statistical data of the past 3 months will be tabulated to reflect progress through comparison of the actual and planned use of the land acquisition, resettlement and compensation fees. Table 10-1 and Table 10-2 provide some formats.

Table 10-1 Progress Report of Land Acquisition, House Demolition and Resettlement ______, ______Town, ______District (County) Cut-off date: MM/DD/YY Date completed: MM/DD/YY Planned Proportion of Item Unit Actual quantity Aggregate quantity completion Permanent land acquisition Mu Temporary land use Mu House demolition area m2 Payment of land 10,000 compensation yuan Compensation for house 10,000 demolition yuan Personnel training Person Job arrangement Person Land adjustment Mu

______, ______Town, ______District (County) Reported by: Signature (person responsible): Official seal:

Table 10-2 Implementation Schedule of Fund Use ______, ______Town, ______District (County) Cut-off date: MM/DD/YY Date completed: MM/DD/YY Investment Compensation Description Unit/ Adjusted Proportion of Affected unit required received 10 Qty. compensation compensation (yuan) (yuan) Village 1 Village 2 Collectives Displaced households Entities Reported by: Signature (person responsible): Official seal:

10.2 External monitoring

As required by the ADB policies, the PMO will employ a qualified, independent resettlement agency with experienced in ADB projects as the independent resettlement monitoring agency. The external monitoring and evaluation agency will make follow-up monitoring and evaluation of resettlement activities, monitor the progress, quality and funds of resettlement, and provide advisory opinions. It will also make follow-up monitoring of the production level and standard of living of the displaced persons, and submit monitoring and evaluation reports to the PMO and ADB. 10.2.1 Scope and methods of external monitoring (1) Baseline survey The external monitoring agency will make a baseline survey of the villages affected by land acquisition in the subproject, and collect baseline data on the production level and standard of living of the monitored displaced households (standard of living, production and income levels). The survey of production level and standard of living will be conducted semiannually to track variations in this aspect. The survey methods include follow-up survey of typical sample (sample size: 20% of households affected by land acquisition 20%, 20% of households affected by house demolition, 50% of affected villages; the sample households will be sampled randomly), random interview and field observation to collect necessary data. A statistical analysis will be made on this basis for evaluation. (2) Regular monitoring and evaluation During the implementation of the Resettlement Plan, the external monitoring agency will perform regular follow-up resettlement monitoring of the following activities twice a year through field observation, follow-up survey of the sample households and random interview with the displaced persons:  Disbursement and amount of compensation fees;  Training;  Support to the vulnerable groups;  Restoration and reconstruction of infrastructure and special facilities;  Resettlement and restoration of production and livelihoods;

10 Fill building of village-level road (number), labor training and employment or subsidy for vulnerable groups, etc. in “Description”.

 Compensation for property losses;  Schedule for the above activities (applicable at any time);  Resettlement network organization;  Use of compensation fees for collective land and income of the displaced persons;  Increase in employment income of labor; and  Whether the affected people benefit from the subproject. (3) Public consultation The external monitoring agency will attend the public consultation meetings to be held during the implementation of resettlement. By attending these meetings, the external monitoring agency can evaluate the results of public participation. (4) Complaints The external monitoring agency will visit the affected villages regularly, and inquire of the town governments and the implementing agencies that accept complaints about the disposition of complaints. In the meantime, it will also meet complainants and propose corrective measures and suggestions for the existing issues so that the implementation process becomes more effective. 10.2.2 External monitoring reporting The external monitoring and evaluation agency will submit a monitoring report and an evaluation report to ADB and the PMO semiannually. The reporting schedule is shown in Table 10-3.

Table 10-3 Schedule of Resettlement Monitoring and Evaluation Report Date 1 Baseline social and economic survey report Dec. 2009 2 1st monitoring report Jul. 2010 3 2nd monitoring report Jan. 2011 4 3rd monitoring report Jul. 2011 5 1st annual evaluation report Jan. 2012 6 2nd annual evaluation report Jan. 2013 7 Post evaluation report Jun. 2013

10.3 Post-resettlement evaluation

After the completion of the subproject, on the basis of monitoring and evaluation, the post-evaluation theory and methods will be used to make a summary and evaluation of resettlement activities to evaluate successful experience and lessons from land acquisition and resettlement and provide a reference for subsequent resettlement.

Appendixes

Appendix 1: Schematic Map of the Subproject

Appendix 2: Public Participation and Minutes

Time March 10, 2009 Location Wuzhuang Village, Renhe Town Organizer Tianchang Highway Administration Bureau Tianchang Highway Administration Bureau, Leaders of Renhe Town Participants Government, Hohai University, ACTVC, 17 representatives of affected villagers (4 women) Topic Willingness for land acquisition, house demolition and resettlement The houses demolished are simple houses that do not affect residence; cash compensation is expected; houses will be demolished and rebuilt by themselves. Details and The compensation fees for land acquisition will be allocated evenly in the results village, followed by a land adjustment. After receiving the land compensation fees, the villagers will make farmland improvement, purchase production equipment, and attend skills training, etc. Time March 10, 2009 Location Renhe Community, Renhe Town Organizer Tianchang Highway Administration Bureau Tianchang Highway Administration Bureau, Leaders of Renhe Town Participants Government, Hohai University, ACTVC, 16 representatives of affected villagers (6 women) Topic Willingness for land acquisition, house demolition and resettlement There is a new countryside planning point in the village, where the displaced households may build a house themselves. Or as the villagers wish, compensation fees for housing site will be granted for the villagers to buy a Details and housing site and build a house themselves. results The compensation fees for land acquisition will be allocated evenly in the village, followed by a land adjustment. After receiving the land compensation fees, the villagers will make farmland improvement, attend skills training or go out for work, etc. Time March 11, 2009 Location Shuguang Community, Tianchang Sub-district Organizer Tianchang Highway Administration Bureau Tianchang Highway Administration Bureau, Leaders of Renhe Town Participants Government, Hohai University, ACTVC, 17 representatives of affected villagers (5 women) Topic Willingness for land acquisition, house demolition and resettlement The houses of the villagers are far away from the existing room. To reduce the impact of the road on the living environment, these houses will be set back locally. Details and The compensation fees for land acquisition will be allocated evenly in the results village, followed by a land adjustment. There are many low-yield fields in the villages. After receiving the land compensation fees, the villagers will improve the low-yield fields. The village collective will expand capital introduction using the improved traffic conditions.

Discussion with affected households

Appendix 3: Gender Analysis of Affected Areas

Part A – Gender Analysis of Rural Women in the Project Area 1. Legal Rights According to China’s laws, women have equal legal rights with men. of Women However, some women are not fully aware of their rights. The women of the project affected area have relatively good social status. All 2. Status of key issues of a family are determined through discussion both by the husband Women in and wife. Men are the backbones in a family. They attend the important Society meetings of the village. However, women have the influences on them when they are required to make determination. Women have the same title as men. Like other parts of China, in the affected areas, when a daughter is married, her land will remain in her mother’s home and she can only share the land owned by her husband’s home since the 3. Legal title to household contract responsibility system was put into practice in 1982. land and However, if a second round of land contracting is carried out at the affected property village (around 1999), this situation has been corrected. If land acquisition, house demolition and resettlement are involved, women will have equal rights to compensation. 4. Access to common Women have equal rights. property There is no restriction on gender role. However, women do housework and 5. Livelihoods appropriate agricultural production tasks mainly in Chinese rural areas, while and gender men deal with transport or work mainly. Generally, the working hours of women roles are 1.2 times those of men. In the meantime, many young women would also go out for work. 6. Contribution Women’s income is from farming and household sidelines mainly, accounting to household for about 25% of household income. income 7. Intra- Women have an equal voice in decision-making; when men are away for work, household women make decisions. equality Boys and girls enjoy equal opportunities in receiving education, and as long as 8. Educational children study hard, their parents would do their best to support their school levels education. Health conditions are quite good and there is no significant difference in 9. Health nutrition levels compared to men; however, medical expenses are rising which condition is a significant burden for some households, and women may suffer more. Women are represented in all village committees. In the meantime, women 10. Village and have a good informal network in the village and the villager team. Women may government participate in the election of the village committee, and have the right to elect institutions and be elected; local governments attach great importance to women’s development, especially in poverty reduction. Women enjoy a good status in the affected areas, and there is no restriction on Overall gender role; though women seldom participate in the decision-making of public evaluation and affairs of the village collective, they can express their views in many ways (e.g., key risks through male members of the household). B—Gender analysis of women during resettlement Mitigation Gender issue Concern/risk Impact of the subproject measures (1) Cash Women will be Men and women have equal rights to compensation or 1 Land, property deprived of land or compensation for land acquisition, improvement of the and right to properties or have resettlement etc. the project will not quality of remaining compensation no right to have any adverse impacts. land, restructuring compensation. of crop cultivation

Part A – Gender Analysis of Rural Women in the Project Area Women have title to houses, and Women have no house reconstruction is determined 2 House right to decision jointly by all family members, so (2) Women have demolition and making or use the women can participate in the title to rebuilt rebuilding compensation selection of housing site, house houses. fees. construction and transitional housing arrangement, etc. All affected households will lose part of land only, so the affected (1) Women will households will lose part of income receive land only. The compensation fees will be acquisition fees; (2) used at the own discretion of the Women are women will account 3 Restoration of affected households. Only seriously affected even more for at least 50% production and affected households have to change seriously, and among trainees; (3) income after their sources of income. Except cash obtain less during construction, land acquisition compensation, the affected assistance. women can have at households will be aided in restoring least 30% of income through auxiliary measures unskilled job (priority in employment during opportunities. construction, technical training and subsequent support, etc.) This will not lead to gender inequalities. For most households, the impacts of resettlement are not Women will have a 4 Increase in serious. The loss of land and the heavier burden or gender sufficient compensation will help Monitoring fewer inequalities women change the structure of crop opportunities. cultivation (e.g., cultivating more cash crops), which will increase their income. 5 Community The social network The subproject will not affect the No impact network system will be damaged. community network seriously. Serious health or The subproject will not affect the 6 Impact on social problems Provision of villages seriously, but some health / increase due to the stress of assistance together seriously affected households and of social resettlement with the civil affairs vulnerable groups will be faced with problems (violence, AIDS authorities difficulties. propagation, etc.) The resettlement impacts and policies are transparent through the bulletin of land acquisition, the No source of resettlement information booklet and 7 Public information or no consultation meetings; women can Holding a separate consultation and participation in play an active part in the above women’s meeting participation decision making activities. In the resettlement survey, women were surveyed specially, and their opinions taken into account in the Resettlement Plan. The PMO will No channel or 8 Complaints address women’s ability of complaint Women have equal rights. and appeals issues and take or appeal remedies actively. Women’s needs Encourage all are not fully The resettlement funds will be affected people, 9 Monitoring understood or the audited. In the meantime, the especially women, and Evaluation impacts on them external monitoring agency will pay to participate in are not fully special attention to women’s issues. monitoring and considered. evaluation

Appendix 4: Distribution Structure Sampling Survey

Households Affected Sampling rate City Town Village sampled households (%) Zhanggu Village 79 390 20.3 Lulong Community 5 23 21.7 Renhe Town Renhe Community 24 122 19.7 Wuzhuang Village 9 41 22 Baima Village 1 2 50.0 Tianchang Shuguang Tianchang 85 462 18.4 Community Sub-district Guangning Village 62 300 20.7 Shouchang Village 3 11 27.3 Qinlan Town Qingzhu Village 9 32 28.1

Appendix 5: Social and Economic Information of Affected Towns

Tianchang Item Town/sub-district Unit Qinlan Town Renhe Town Sub-district Total households Household 10,521 11,228 12,045 Total population Person 42,078 40,835 42,896 Population Where: men Person 21,142 24,501 22,145 Agricultural Person 37,870 36,436 38,970 population Total arable area Mu 62,774 63,772 64,578 Per capita arable area mu/person 1.49 1.5 1.51 Gross output value 10,000 yuan 490,000 319,000 343,500 Gross agricultural 10,000 yuan 15,000 17,000 18,500 output value GDP Gross industrial 10,000 yuan 450,000 27,000 290,000 output value Output value of 10,000 yuan 25,000 32,000 35,000 tertiary industries Per capita disposable income of Yuan 14,000 12,000 15,000 urban residents Per capita net income of Yuan 5,608 4,320 4,150 farmers

Appendix 6: Policies on Endowment Insurance of Farmers Deprived of Land

 Anhui Province

Guidelines of the Anhui Provincial People’s Government on Doing Well in the Employment and Social Security for Farmers Affected by Land Acquisition (Wan Zheng [2005] No.63)

All municipal and county people’s governments, all departments of and agencies directly under the provincial government, and agencies of Central government in Anhui: To ensure the employment and social security of farmers affected by land acquisition practically, and maintain their lawful rights and interests, the following opinions are proposed on the employment and social security of farmers affected by land acquisition in accordance with the Decision of the State Council on Deepening Reform and Exercising Strict Land Management (Guo Fa [2004] No.28). 1. Fully realize the importance and urgency of ensuring the employment and social security of farmers affected by land acquisition With the industrialization and urbanization of rural areas, there are an increasing number of farmers affected by land acquisition. It has become an urgent task in our province’s economic and social development to solve production and livelihood issues for farmers affected by land acquisition. Establish a sound employment mechanism and social security system for farmers affected by land acquisition to provide a stable source of income and reliable basic living guarantee to farmers affected by land acquisition, and solve their long-term livelihood issues. This is an embodiment of the important thought of the “Three Represents” and an objective requirement for building a well-being society in all aspects, and has great and far-reaching significance in protecting the lawful rights and interests of farmers affected by land acquisition, maintaining social and political stability, improving the investment environment, and promoting the comprehensive, sustained, rapid and balanced economic and social development of our province. Governments at all levels shall take it an important task and a priority to promote the employment of farmers affected by land acquisition, and accelerating the establishment of the social security system for farmers affected by land acquisition, and perform this task perfectly. 2. Principles to be followed in ensuring the employment and social security of farmers affected by land acquisition (1) Identify subjects of employment and social security reasonably: Subjects of the employment and social security of farmers affected by land acquisition are the agricultural population losing all or most of farmland within the planning area of a city (including organic town) approved for land acquisition by the State Council or the provincial people’s government pursuant to law. Out of the planning area of a city (including organic town), the agricultural population not having the basic living and production conditions, or having a per capita arable area of not less than 0.3 mu, or no longer occupying farmland within rural collective economic organizations after voluntary adjustment and not to be non-locally resettled by local people's governments after land acquisition approved pursuant to law shall also be identified as subjects of employment and social security. The specific criteria and term for the identification of subjects of the employment and social security of farmers affected by land acquisition shall be determined by municipal and county people’s governments based on local conditions. The procedure for the identification of subjects of the employment and social

security of farmers affected by land acquisition is: A farmer affected by land acquisition files an application personally; the members of the village collective economic organization, village committee or villager team discusses his/her eligibility; the town people’s government or sub-district office studies and publishes his/her eligibility; the labor and social security, and land and resources authorities review his/her eligibility, and report to the municipal or county people’s government for determination. (2) Highlight priorities: All local governments shall take the employment of farmers of employment age affected by land acquisition, the endowment insurance of farmers affected by land acquisition and the solution of basic livelihood issues of poor farmers affected by land acquisition as the priorities of their work, and ensure the medical treatment of farmers affected by land acquisition and the education of their children. Effective measures shall be taken to ensure that the standard of living of farmers affected by land acquisition is not reduced due to land acquisition, and that their long-term livelihoods are guaranteed. (3) Scientific measurement and calculation, unified planning, adaptation to local conditions, and steady progress: All local governments shall make unified planning of reform, development and stability, and the near-term, medium-term and long-term interests in local social and economic development, the connection between the employment and social security system for farmers affected by land acquisition with that for other urban residents, and the protection of the interests of farmers affected by land acquisition with different terms of land acquisition and reasons, and inside or outside the urban planning area on the basis of sufficient survey and study, detailed occupation data, and detailed basic information of the land and farmers affected by land acquisition; design practical and feasible specific measures for the employment and social security of farmers affected by land acquisition through scientific measurement and calculation, formulate definite operating procedures and strict working requirements, provide guidance for different types, and ensure steady and orderly progress. 3. Turn the registered permanent residence of farmers affected by land acquisition properly. Farmers affected by land acquisition are encouraged to move to towns. When farmers affected by land acquisition apply for the nonagricultural status in household registration, municipal and county (district) public security authorities shall go through the relevant formalities for them and register them at a nearby jurisdiction free of charge. Those having been turned into the nonagricultural status shall have the same rights to social security, education and residence as the local urban residents, and shall not be discriminated against by any entity or individual. 4. Promote the employment of farmers affected by land acquisition in diverse forms. Governments at all levels shall bring farmers affected by land acquisition into the urban employment system. Public benefit jobs shall be developed to place farmers affected by land acquisition. Where conditions permit, a certain proportion of land used for construction acquired by the state may be reserved for resettlement to absorb the employment of farmers affected by land acquisition. Land users shall give jobs suitable for farmers affected by land acquisition to them first. Farmers affected by land acquisition are encouraged to find jobs and start business independently. Unemployed farmers affected by land acquisition shall be brought into the reemployment service system actively, provided with free vocational training, advice on employment policies, employment information, vocational guidance and referral services; they shall be organized in a planned and orderly manner to participate in employment training and vocational skills training, so as to improve their employment skills and competitive power; and also provided with employment assistance and business startup guidance. 5. Ensure the social security of farmers affected by land acquisition properly

(1) Farmers affected by land acquisition that have been turned into the nonagricultural status and are eligible for the basic endowment insurance of enterprise employees, the basic medical and unemployment insurances for urban workers shall be brought into the scope of these insurances; those having livelihood difficulties and eligible for the minimum living guarantee for urban residents shall be brought into the scope of the minimum living guarantee for urban residents. If rural social endowment insurance and rural cooperative medical systems have been established, and the rural minimum living guarantee system is tried out locally, farmers affected by land acquisition that still have the agricultural status in household registration shall be brought into the scope of the corresponding insurances and guarantee; for those eligible for rural aid for the extremely poor and rural minimum living guarantee, their basic livelihood issues should be solved by providing them with rural aid for the extremely poor and rural minimum living guarantee. (2) Establish an endowment insurance system for farmers affected by land acquisition gradually. An endowment insurance system for farmers affected by land acquisition shall be established gradually throughout the province in about 3 years’ time. Farmers affected by land acquisition having attained 16 years of age upon land acquisition and not covered by urban basic endowment insurance may effect the endowment insurance of farmers affected by land acquisition voluntarily, the funds of which shall be raised jointly by the local government, the village (team) collective and individuals. The contribution of the government shall be disbursed from land transfer income and other incomes for compensated use of state land, and the contribution of the village (team) collective shall be disbursed from the land compensation, the operating income of the collective economic organization, and other incomes of the village (team) collective. The government and collective contributions shall be used to grant basic endowment insurance benefits, and the standard thereof shall not be less than 80 yuan per person-month. The personal payment shall be used as a supplement to endowment insurance benefits. All local governments may guide and encourage farmers to pay premiums to enrich endowment insurance funds and improve the level of endowment insurance. The starting age of receiving endowment insurance benefits shall be 60 years for men and 55 years for women. The finance, and land and resources authorities shall assist in transferring endowment insurance funds for farmers affected by land acquisition to the special account of social security funds opened by the local finance authorities timely and fully, while giving a notice to the labor and social security authorities of the same level. The personal payment, and the government and collective contributions shall be managed in separate account books, in which the latter shall be subject to municipal or county unified planning in principle. If the insured dies, the balance of the principal amount of his/her personal payment may be inherited with interest pursuant to law. Farmers affected by land acquisition eligible for the urban basic endowment insurance of enterprise employees may elect to effect such insurance. In this case, the personal payment to the endowment insurance of farmers affected by land acquisition shall be refunded to the insured at a time, and the endowment insurance of farmers affected by land acquisition shall be cancelled thereupon. 6. Strengthen the leadership of the employment and social security of farmers affected by land acquisition. Governments at all levels shall attach great importance to the employment and social security of farmers affected by land acquisition, and strengthen leadership practically. The leaders chiefly responsible shall take the lead personally. The labor and social security authorities are in charge of this work, and shall play a leading role practically, and the finance, land and resources, agriculture, civil affairs and public security authorities shall perform their respective responsibilities and work closely to ensure the employment and social security of farmers affected by land acquisition. The propaganda, supervision and inspection of the employment and social security of farmers affected by land acquisition shall be strengthened to protect the lawful rights

and interests of farmers affected by land acquisition pursuant to law. All municipal and county governments shall formulate the implementation procedures for the employment and social security of farmers affected by land acquisition according to these opinions and the practical situation, and promote the employment and social security of farmers affected by land acquisition steadily and actively. Where the endowment insurance system for farmers affected by land acquisition cannot be put into practice by 2008, the local people’s government shall explain the reason specifically to the provincial people’s government.

Anhui Provincial People’s Government June 12, 2005

 Tianchang Municipality

Interim Procedures of Tianchang Municipality on the Endowment Insurance of Farmers Affected by Land Acquisition Tian Zheng Ban (2007) No.44

I. General Provisions Article 1 In order to further promote our city’s endowment insurance of farmers affected by land acquisition, protect the lawful rights and interests of farmers affected by land acquisition, and provide practical old-age guarantee to them, these Procedures have been formulated in accordance with the Opinions of the Chuzhou Municipal People’s Government on the Implementation of the Employment and Social Security of Farmers Affected by Land Acquisition (Chu Zheng [2005] No.77) and the Implementation Plan of Tianchang Municipality on the Implementation of the Employment and Social Security of Farmers Affected by Land Acquisition (Tian Zheng [2006] No.88).

II. Subjects and Scope of Insurance Article 2 Eligible farmers affected by land acquisition mean people of the agricultural status in household registration who have lived in their collective economic organizations for generations, and residents who have moved in due to marital, kinship or adoption relations or have the right to contracted management of rural land pursuant to law and assume the corresponding obligations, having a per capita arable area of less than 0.3 mu after their collective land is acquired pursuant to law (in case of unified acquisition and transfer in the unit of villager team, to be identified as villager teams; in case of acquisition in the unit of household, to be identified as households), having attained 16 years of age upon land acquisition and having not effected the basic endowment insurance of urban workers. Article 3 College and secondary school students, in-service compulsory servicemen and first and second class officers complying with the provisions of Article 2 before enrollment, people serving a sentence or under reeducation through labor complying with the provisions of Article 2 before sentence or reeducation through labor, and those whose household registration has changed, but whose rights and obligations in their collective economic organizations have not changed may be included in farmers affected by land acquisition eligible for the insurance. Article 4 The following people shall not be covered by the endowment insurance of farmers affected by land acquisition: those who have been resettled or turned into urban residents in any past land acquisition, those whose household registration is in rural collective economic organizations, but who have effected urban endowment insurance or become permanent staff of state organs or public institutions; lodgers or temporary residents who have moved their household registration into appropriate rural collective economic organizations for any other reason; and other people otherwise specified.

Article 5 Farmers affected by land acquisition that have been subject to resettlement with land reserved (land for tertiary industries) in any past land acquisition may effect the basic endowment insurance of urban workers as urban residents subject to flexible employment; or only those having paid 7,000 yuan (threshold fee) at a time and eligible for receiving basic endowment insurance benefits can be entitled to the basic endowment benefit of 80 yuan per month for farmers affected by land acquisition. Those not subject to resettlement with land reserved (land for tertiary industries), but already receiving the monthly low income benefit in accordance with the Minutes (Tian Zheng Ji [2003] No.14), having attained the age of 60 years for men and 55 years for women may also effect the endowment insurance of farmers affected by land acquisition after these Procedures come into effect, but the former low income benefit must be cancelled simultaneously. Article 6 Those eligible for the endowment insurance of farmers affected by land acquisition, having not attained the starting age and having extreme livelihood difficulties may apply for the minimum living guarantee for urban residents as stipulated provided their household registration has been turned to the nonagricultural status. Article 7 The existing arable area of rural collective land shall be based on the survey and research data of land use variations, and calculated from the actual measured area based on classified land account books. Article 8 The mode of land acquisition, resettlement and guarantee for large and medium water conservancy, electric power and traffic infrastructure construction shall be governed by the pertinent provisions of the State Council and the provincial people’s government.

III. Identification Procedure of Subjects of Insurance Article 9 Materials to be provided by a villager team: the materials on the acreage of co-owned arable land of the villager team upon the second round of land contracting; the number of people having the right to contracted management of land of the villager team upon the second round of land contracting; and the materials on past land acquisitions. Article 10 Materials to be provided by a farmer affected by land acquisition: the application form for the endowment insurance of farmers affected by land acquisition, the personal ID card (copy), 4 one-inch recent personal photos without hat; the household land contract upon the second round of land contracting, the certificate of land management right or the materials on the land ownership upon the second round of land contracting. Article 11 Review and identification procedure: (1) Personal application; (2) With the consent of more than half of the members of the villager team, candidates shall be published locally by the villager team for public comment, and the relevant information shall be submitted to the village committee; (3) After review by the village committee, the list of candidates shall be submitted to the town (sub-district) government for approval; (4) The town (sub-district) government shall submit the approved list to the municipal handling agency (“handling agency”) of the endowment insurance of farmers affected by land acquisition for examination; (5) The examined list shall be returned to the town (sub-district) government, the village committee and the villager team for 3-level publication; (6) If there is no objection after publication, the town (sub-district) government shall submit the list to the municipal labor and social security bureau for approval; (7) The handling agency shall confirm the approved persons based on the evidence of the special financial account of unified funds submitted by the town (sub-district) government, enter their information into the computer, and issue the Certificate of Basic Endowment Insurance of Farmers Affected by Land Acquisition.

IV. Modes of Insurance

Article 12 After farmers affected by land acquisition have been identified as the insured, they may elect to effect the basic endowment insurance or the supplementary endowment insurance of basic endowment insurance plus personal payment voluntarily, in which the latter has two levels: a single payment of 3,600 yuan for Level 1 and 6,600 yuan for Level 2. Once the level is selected, it shall not be varied. Article 13 Basic endowment insurance shall be provided by unified funds. When the insured attains the age of 60 years for men and 55 years for women, he/she can receive the basic endowment insurance benefit of 80 yuan per person-month from the month following approval. If the supplementary endowment insurance of basic endowment insurance plus personal payment is selected, when the insured with a single payment of 3,600 yuan attains the age of 60 years for men and 55 years for women, he/she shall receive an endowment insurance benefit of 120 yuan per person-month from the month following approval, in which the basic endowment insurance benefit is 90 yuan and the personal account amount is 30 yuan; when the insured with a single payment of 6,600 yuan attains the age of 60 years for men and 55 years for women, he/she shall receive an endowment insurance benefit of 160 yuan per person-month from the month following approval, in which the basic endowment insurance benefit is 105 yuan and the personal account amount is 55 yuan. The above benefit shall expire upon death of the insured. Article 14 After being turned into the nonagricultural status, farmers affected by land acquisition may elect to effect the basic endowment insurance of urban workers, and the period of payment before retiring age must have attained 15 years. If this period has not been attained, the insured may make retroactive payment for the period of non-payment up to January 1996.

V. Collection and Distribution of Funds Article 15 Endowment insurance funds for farmers affected by land acquisition consist of unified funds and personal account funds. Unified funds shall be raised by beneficiaries. From January 1, 2007, for newly acquired land, the local town people’s government and the local sub-district office shall raise unified funds from land compensation at the standard of 2,000 yuan per mu, and transfer such funds to the special municipal account for unified funds of the endowment insurance of farmers affected by land acquisition fully within 3 months of approval of the compensation and resettlement plan for land acquisition as the unified funds of the endowment insurance of farmers affected by land acquisition, used mainly to pay the basic endowment insurance benefit in the endowment insurance of farmers affected by land acquisition, and any deficiency shall be made up by the municipal government from the income from compensated use of state land. For those eligible for endowment insurance benefits within 5 years among farmers affected by land acquisition generated before December 31, 2006, the basic endowment insurance benefit shall be raised by the local town people’s government, paid into the municipal special financial account year by year within 5 years and subject to unified management and shall be distributed by the handling agency. Article 16 The municipal rural social security bureau shall be the handling agency of the endowment insurance of farmers affected by land acquisition, responsible for distribution and management, and set up personal accounts for farmers affected by land acquisition effecting the supplementary endowment insurance of basic endowment insurance plus personal payment voluntarily, whose personal account funds shall consist of the principal paid personally and interest thereof. Interest shall accrue on the principal of the personal account from the date of payment by reference to the bank deposit rate of the same period, and shall be settled annually and deposited to the personal account. For farmers affected by land acquisition attaining the starting age of endowment insurance, the handling agency shall prepare a distribution plan, apply for sufficient unified funds, and distribute endowment insurance benefits on schedule. For the interest accruing on personal

account funds, the handling agency shall otherwise calculate the rural endowment insurance benefit in accordance with the prevailing provisions, and calculate and distribute it in a separate account from the endowment insurance of farmers affected by land acquisition. Article 17 The handling agency shall issue the Certificate of Receiver of Endowment Insurance Benefits of Farmers Affected by Land Acquisition and a bankbook to farmers affected by land acquisition holding the Certificate of Basic Endowment Insurance of Farmers Affected by Land Acquisition and attaining the starting age; endowment insurance benefits of farmers affected by land acquisition shall be subject to public distribution, where farmers affected by land acquisition may draw endowment insurance benefits at any savings house of the designated financial institution monthly. The handling agency shall apply the annual examination system to receivers of endowment insurance benefits of farmers affected by land acquisition. In every December, receivers of endowment insurance benefits shall identify themselves with the handling agency carrying the personal ID card and the Certificate of Receiver of Endowment Insurance Benefits of Farmers Affected by Land Acquisition. Any receiver failing to identify himself/herself shall be suspended of the distribution of endowment insurance benefits by the handling agency. Article 18 The basic endowment insurance benefit of farmers affected by land acquisition shall be paid from unified funds, and personal account funds from the personal account. After the personal account funds have been used out, the benefit shall be paid from the unified funds. Article 19 After a farmer affected by land acquisition effecting endowment insurance is deceased, the balance of the principal amount of his/her personal account may be paid to his/her legal heir or designated beneficiary with interest, and his/her relationship of the endowment insurance of farmers affected by land acquisition shall be terminated. Article 20 If a personal account has been established for farmers affected by land acquisition as stipulated, and the owner of such account is turned into the nonagricultural status and effects the basic endowment insurance of urban workers in the future, the balance of his/her personal account shall be refunded to him/her at a time from the date of effecting the basic endowment insurance of urban workers.

VI. Responsibilities of Departments Article 21 All town (sub-district) governments shall establish account books for members of rural collective economic organizations, for land use and land acquisition account books, and carry out dynamic management, ensure the endowment insurance of farmers affected by land acquisition within their respective jurisdiction, and be responsible for the collection and payment of unified funds of the endowment insurance of farmers affected by land acquisition. The municipal labor and social security bureau shall establish a guiding agency and a handling agency for the endowment insurance of farmers affected by land acquisition to be responsible specifically for the management and distribution of endowment insurance funds of farmers affected by land acquisition, and establish the corresponding account books; the municipal finance bureau shall be responsible for the supervision and coordination of endowment insurance funds for farmers affected by land acquisition, set up a special account for unified funds of the endowment insurance of farmers affected by land acquisition, transfer endowment insurance funds for farmers affected by land acquisition to the disbursement account for endowment insurance funds for farmers affected by land acquisition fully, and transfer the government contribution to the unified account for endowment insurance funds for farmers affected by land acquisition timely and fully, and carry out management of the receipt and disbursement lines on the principle of special fund for special use. The land and resources, housing, propaganda, agriculture, public security, civil affairs, supervisory, and auditing authorities shall perform their respective responsibilities properly.

VII. Legal Liabilities Article 22 If any entity affected by land acquisition or any competent authority makes misrepresentation of data, or practices fraud during land acquisition to falsely claim land compensation fees or withhold, the functional department shall order it to correct such act, and investigate the administrative liability of the person responsible and any other person directly liable; if such act constitutes a crime, the criminal liability shall be ascertained pursuant to law. Article 23 In case of misappropriation or embezzlement of land compensation fees and other relevant expenses, an administrative punishment shall be given pursuant to law; if such act constitutes a crime, the criminal liability shall be ascertained pursuant to law. Article 24 If any civil servant neglects his/her duties, abuses his/her authorities or commits malpractice in the compensation for land acquisition and the endowment insurance of farmers affected by land acquisition, he/she shall be given an administrative punishment pursuant to law; if such act constitutes a crime, the criminal liability shall be ascertained pursuant to law. Article 25 Anyone who obstructs or causes damage to land acquisition, or impeding civil servants from performing official business, he/she shall be punished by the public security authorities pursuant to law; if such act constitutes a crime, the criminal liability shall be ascertained pursuant to law.

VIII. Supplementary Provisions Article 26 These Procedures shall be interpreted by the municipal labor and social security bureau, the municipal land and resources bureau and the municipal finance bureau, and come into effect on January 1, 2007.

Appendix 7 Detailed Resettlement Budget

Expense Quantity No. Item Unit yuan/unit (10,000 Proportion Remarks (Unit) yuan) 1 Collective land 1295.2 26.7% 1.1 Land compensation Mu 789.9 16.3% Paddy field Mu 11250 423 475.9 9.8% Dry land Mu 11250 203.1 228.5 4.7% Vegetable plot Mu 1125 2 2.3 0.0% Housing site Mu 7500 17 12.8 0.3% Other rural land for Mu 7500 94 70.5 1.5% construction 1.2 Resettlement subsidy 473.9 9.8% Paddy field Mu 6750 423 285.5 5.9% Dry land Mu 6750 203.1 137.1 2.8% Vegetable plot Mu 6750 2 1.4 0.0% Housing site Mu 4500 17 7.7 0.2% Other rural land for Mu 4500 94 42.3 0.9% construction 1.3 Crop compensation Mu 31.4 0.6% Paddy field Mu 500 423 21.2 0.4% Dry land Mu 500 203.1 10.2 0.2% Vegetable plot Mu 500 2 0.1 0.0% Temporary land 2 Mu 378.3 7.8% occupation Temporary land 2.1 occupation for borrow Mu 140.1 2.9% pits cultivated land Mu 12000 111.63 134 2.8% non-cultivated land Mu 4000 15.42 6.2 0.1% Other temporary land Based on 2.2 Mu 4000 169 135.2 2.8% occupation 2 years 2.3 Land reclamation fee Mu 4000 257.47 103 2.1% Rural residential 3 204.3 4.2% houses Housing 3.1 184.8 3.8% compensation Masonry concrete m2 410 2863 117.4 2.4% structure Masonry timber m2 260 2547 66.2 1.4% structure Simple structure m2 80 148 1.2 0.0% 3.2 Other compensation m2 19.5 0.4% Relocation subsidy preson 500 254 12.7 0.3% Temporary Household· Based on 300 57 6.8 0.1% resettlement fee month 4 month Compensation for 4 42 0.9% entities Housing 4.1 40.2 0.8% compensation Masonry concrete m2 410 650 26.7 0.5% structure Masonry timber m2 260 520 13.5 0.3% structure 4.2 Simple structure m2 1.8 0.0% Other compensation m2 3 1170 0.4 0.0%

Expense Quantity No. Item Unit yuan/unit (10,000 Proportion Remarks (Unit) yuan) shutdown 2 Based on m ·month 3 1170 1.4 0.0% compensation 4 month 5 Ground annexes 1572.1 32.4% Public toilets / 180 12 0.2 0.0% 10KV telegraph / 1500 146 21.9 0.5% poles 380V telegraph / 100 7640 76.4 1.6% poles 380V wooden / 50 59 0.3 0.0% telegraph poles Transformers / 20000 16 32 0.7% Canals m2 150 31740 476.1 9.8% Bridges / 15000 5 7.5 0.2% Highways m2 100 36000 360 7.4% Tractor plowing m2 80 3000 24 0.5% roads Tombs / 300 70 2.1 0.0% Underground M 150 2000 30 0.6% structures Water supply pipes M 150 8500 127.5 2.6% Drainpipes M 150 8740 131.1 2.7% Communication M 80 7500 60 1.2% cables Power cables M 40 7500 30 0.6% Lawns, parterres m2 60 3900 23.4 0.5% Tapping pipes M 150 11000 165 3.4% Pumped wells, / 2000 1 0.2 0.0% large opening wells Big trees (non fruit) / 10 1000 1 0.0% Small trees (non / 6 2350 1.4 0.0% fruit) Scattered fruit trees / 30 10 0 0.0% Enclosure m2 740 26 1.9 0.0% Total of Items 1-5 3491.9 71.9% Land acquisition 6 10,000 yuan 4% 1295.2 51.8 1.1% management fee Surveying, design 7 and research 10,000 yuan 3% 3491.871 104.8 2.2% expenses Administrative 8 10,000 yuan 5% 3491.871 174.6 3.6% expenses Technical training 9 10,000 yuan 3% 3491.871 104.8 2.2% expenses External monitoring 10 and evaluation 10,000 yuan 4% 3491.871 139.7 2.9% expenses Subsidy for 11 10,000 yuan 1% 3491.871 34.9 0.7% vulnerable groups Sum of Contingency 12 10,001 yuan 10% 4102.4 410.2 8.4% Items expenses 1-11 Land acquisition 13 10,002 yuan 345.2 7.1% taxes Farmland yuan/ m2 2 1333.34 0.3 0.0% occupation tax

Expense Quantity No. Item Unit yuan/unit (10,000 Proportion Remarks (Unit) yuan) Farmland 2 yuan/ m 7 492735.8 344.9 5.00% reclamation fee Total of items 6-13 3449.6 49.70% Total expenses 6945 100 %

Appendix 8 :Resettlement Information Booklet

ADB Financed Anhui Integrated Transport Sector Improvement Project

Resettlement Information Booklet （RIB）

for S312 Tianchang Section

Anhui, China July 2009

A Brief description of the project

The S312 Jiangsu Boarder-Tianchang Section Reconstruction Project is one of the subprojects of the ADB financed project – Anhui Integrated Transport Sector Improvement Project. The subproject will further strengthen the traffic and economic link between Tianchang City and Yangzhou City, Nanjing City and even south Jiangsu and the Yangtze River Delta, improve the traffic environment along the route thoroughly and traffic service level, and have great significance in strengthening the traffic link between Tianchang and the towns along the route, especially Qinlan, Renhe and Lulong, and driving the process of urban-rural integration. The land acquisition and resettlement of the subproject involves 9 villages of 3 towns of Tianchang City, including 2 villages in Qinlan Town, 5 in Renhe Town, and 2 in Tianchang Sub-district. The subproject will commence in 2009 and be completed in 2011, and the implementation plan for land acquisition, house demolition, compensation and resettlement will be put into practice in May 2009, and completed by January 2011. The estimated resettlement expenses of the subproject are 48.578million yuan (based on prices of 2008), including basic expenses for land acquisition (occupation) and house demolition, relevant taxes and unexpected expenses, accounting for 18.1% of the whole project budget. B Summary of resettlement impacts of the project

The main impacts of the S312 Jiangsu Boarder-Tianchang Section Reconstruction Project are permanent land acquisition, temporary land occupation, demolition of residential houses and relocation of entities. In the subproject, 793.1 mu of collective land will be acquired, including 423 mu of paddy field (57.2%), 203.1 mu of dry land (27.5%), 2 mu of vegetable plots (0.3%), 17 mu of housing sites (2.3%) and 94 mu of other land (12.7%), affecting 5,692 people out of 1,383 households directly. 296.05 mu of land will be occupied temporarily, including 127.1 mu of land for borrow pits (42.9%); in terms of land type, this includes 173.43 mu of paddy field (58.6%), 83.26 mu of dry land (28.1%), 0.82 mu of vegetable plots (0.3%) and 38.54 mu of other land (13%), affecting 1,639 people out of 404 households for a short term. In the subproject, 4,913m2 of residential houses will be demolished, including 2863m2 (58.3%) in the masonry concrete structure, 2,547m2 in the masonry timber structure (51.8%) and 148m2 in the simple structure (3.0%), affecting 254 people out of 57 households. 4 entities will be relocated, with a total area of 1,170m2, affecting 45 people. In addition, the subproject will also affect some ground annexes, such as tombs, trees and telegraph poles. The key resettlement impacts of the project are shown in Table 1. Table 1 Key Resettlement Impacts of the Project Total 793.1 Permanent land acquisition (mu) Where: arable land and 626.1 garden Temporary land occupation (mu) 296.05 Demolition of rural residential houses (m2) 4913 Demolition of entities houses (m2) 1170 Households 1326 Land acquisition only Population 5393 Households 42 House demolition only Directly affected Population 188 population Both land acquisition Households 15 and house demolition Population 66 Demolition of entities / 4 houses Population 45

Households 1383/4 Total Population 5692 Households 404 Temporarily affected population Population 1639

C Legal Framework and Policies C.1 Policies basis The resettlement policies for the subproject are formulated based on ADB policies and the applicable laws, regulations and policies of China mainly, including: 1) ADB policies  Involuntary Resettlement, November 1995  Resettlement Operations Manual (OM/F2), October 2003  Gender and resettlement, February 2003 2) Laws, regulations and policies of the PRC  Land Management Law of the People's Republic of China (effective from January 1, 1999, amended on August 28, 2004)  Decision of the State Council on Deepening Reform and Exercising Strict Land Management (Guo Fa [2004] No.28) (October 21, 2004)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR Fa [2004] No.238) (November 3, 2004)  Measures for the Administration of Preliminary Examination of the Land Used for Construction Projects (Ministry of Land and Resources Order No.27) (November 1, 2004) 3) Provincial and local policies  Circular of the Anhui Provincial People’s Government on Doing Well in Compensation and Resettlement for Land Acquisition to Protect Farmers’ Lawful Rights and Interests Practically  Detailed Rules of Anhui Province for the Management of the Collection and Use of Farmland Reclamation Fees (Cai Zong [2001] No.1061)  Procedures of Anhui Province on the Implementation of the Land Management Law of the People’s Republic of China (December 1, 2002)  Circular of the Anhui Provincial Finance Department on Farmland Occupation Tax on Highways  Guidelines of the Anhui Provincial People’s Government on Doing Well in the Employment and Social Security for Farmers Affected by Land Acquisition (Wan Zheng [2005] No.63)  Interim Procedures of Tianchang Municipality on the Endowment Insurance of Farmers Affected by Land Acquisition (July 25, 2007) C.2 Main Compensation Rate  Acquisition of collective land According to the Land Management Law of the People’s Republic of China, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, the policies and regulations of Anhui Province on the implementation of the Land Management Law of the People’s Republic of China, the compensation fees for the acquisition of arable land include land compensation, resettlement subsidy and crop compensation. The compensation standards for the acquisition of rural collective land are shown in Table 4-4. The compensation rate will be adjusted accordingly if the related policies of Anhui province is changed, the results will be presented in updated RP.

Table2 Compensation Multiples and Standards for Collective Land Acquisition Annual Multiple Compensation standard (yuan/mu) Type of output Land Resettlement Crop Land Resettlement Crop land value Subtotal Subtotal (yuan/mu) compensation subsidy compensation compensation subsidy compensation Paddy 1125 10 6 / 16 11250 6750 500 18,500 field Dry land 1125 10 6 / 16 11250 6750 500 18,500 Vegetable 1125 10 6 / 16 11250 6750 500 18,500 plot Housing 750 10 6 / 16 7,500 4,500 0 12,000 site Other 750 10 6 / 16 7,500 4,500 0 12,000 Village Receiver Individuals Individuals collective

 Compensation for temporary land occupation According to the provisions of the state and Anhui Province on temporary land occ According to the provisions of the state and Anhui Province on temporary land occupation, land temporarily occupied for borrow pits will be compensated for at a time, while other temporarily occupied land will be compensated for at the annual output value of the land for the period of impact. Compensation fees for temporary land occupation include compensation for young crops/ground annexes. The compensation standards for temporary land occupation are shown in Table 3. To reduce the impact of land acquisition on young crops, the subproject will be constructed after harvest or before seeding as the case may be. According to the construction design, the period of temporary land occupation is 2 years. Table 3 Compensation Standards for Temporary Land Occupation land compensation Temporary land other temporarily city Land type occupation for occupied land borrow pits (yuan/mu· year) (yuan/mu) cultivated land 12000 4000 Tianchang non-cultivated land 4000 4000

 Compensation standards for houses demolition 3) Rural residential houses The compensation standards for houses of different types shall be determined according to the pertinent provisions by reference to the actual prices of the main types of the affected houses and the compensation standards for similar past projects, as shown in Table 4. A housing plot will be allocated prior to house demolition; meanwhile the location of new residential plots will be decided by villages and APs. Table 0 Compensation Standards for Rural Residential Houses and Annexes Standard Remark Category Structural type Unit (yuan/unit) Masonry concrete m2 410 House 2 Masonry timber m 260 compensation Simple m2 80 Moving subsidy yuan/person 500 Other Living allowance for yuan/ Based on 4 compensation 300 transition period household· month months

4) Houses of entities The houses of the entities relocated in the subproject are office, storage rooms or simple houses, and no house for production or operation is involved. There is little

impact on the regular production and operating activities of these entities. The compensation standards for houses of different types shall be determined according to the pertinent policies by reference to the actual prices of the main types of the affected houses, as shown in Table 5.

Table5 Compensation Standards for Demolition of Houses and Annexes of Entities Standard Category Structural type Unit Remarks (yuan/unit) House Masonry concrete m2 410 compensation Masonry timber m2 260 Shutdown yuan/m2 3 Other compensation compensation Based on 4 Relocation subsidy yuan/m2·month 3 months

C.3 Entitlement matrix

The entitlement matrix is established in accordance with the applicable policies, as shown in Table 6. Table 6 Entitlement matrix

Type of Degree of impact Eligibility Compensation and resettlement policy impact 5 villages of Renhe Town, 2 villages of 1) Land compensation, and compensation for Tianchang 793.1 mu, including collective properties will be paid directly to the Sub-district 423 mu of paddy field, village collective economic organization or village Permane and 2 villages 203.1 mu of dry land, committee. nt land of Qinlan 2 mu of vegetable acquisitio Town, plots, 17 mu of n Tianchang City housing sites, 94 mu 1) Land compensation or land reallocation will be of other land 5,459 people provided. out of 1,341 2) Resettlement subsidy will be paid households 3)Ground annexes and crop compensation will belong to their respective owners. 1,639 people 1) For temporary land occupation for borrow pits, out of 404 cash compensation will be granted at a time; other 296.1 mu in total, in households in temporarily occupied land will be compensated for which borrow pits will 5 villages of based on the period of occupation and the amount occupy 127.1 mu; in Temporar Renhe Town, of loss, including crop compensation and terms of land type, y land 2 villages of reclamation fee, with a maximum occupation 173.43 mu of paddy occupatio Tianchang period of 2 years. field, 83.26 mu of dry n Sub-district land, 0.82 mu of 2) After the end of land occupation, the land will and 2 villages vegetable plots, 38.54 be restored to the original condition, and of Qinlan mu of other land appropriate economic compensation will be Town, granted. Tianchang City

Type of Degree of impact Eligibility Compensation and resettlement policy impact 299 people out 7,513m2 of houses will of 66 1) House compensation: calculated at be demolished, households in replacement costs of different structural types and Demolitio including 5,463m2 in 2 villages of quality standards n of the masonry concrete Renhe Town, 2) The affected people will receive a moving residentia structure, 2,547m2 in 1 village of subsidy and a transition fee. l houses the masonry timber Tianchang 3)A housing plot will be allocated prior to house structure and 148m2 in Sub-district demolition the simple structure. and 2 villages 4) House registration fees are waived of Qinlan Town 37 people 1) House compensation is based on rebuilding affected by prices. 3 enterprises, with a relocation of 2) The compensation for immovable facilities and house demolition area Relocatio 2 enterprises; 8 equipment is based on the former size and of 1,100m ; one public n of people standards. institution, with a entities affected by house demolition area 2 relocation of 3) Relocation subsidy and shutdown of 70m , public compensation are available. institutions 1) Opportunities of prior employment are available, and 30% of unskilled job opportunities created by the Project will be provided to women. 2) The priority in receiving free technical training is All women in available. 6,000 persons will be trained, with not Women / affected less than 3,000 persons (50%) for females. households 3) The affected people can have access to relevant information during resettlement, and participate in consultation and resettlement. 4)Compensation agreement must be signed by spouses 9 people out of 1) Special allowances provided for the disabled 2 households persons 1) Disabled persons with 2 disabled 2) Priority of training and employment to labor persons force in these households 1) Skill training will be provided to 2 family 2) low-income or poor members, at least one by female. 95 people out households (under the 2) Priority employment (such as outside jobs or of 24 national poverty line) work for the Project construction) will also be households Vulnerabl provided e groups 3) provided pension by local government 1) Skill training will be provided to 2 family 66 people of members, at least one by female. And Priority 15 households employment (such as outside jobs or work for the both affected 3) seriously affected Project construction) will also be provided. by land households 2) When possible, replacement land should be acquisition and arranged as a priority if desired by the affected house household. demolition

1) The affected special facilities will be compensated for by the implementing agencies to Special property owners, and then restored by property facilities owners, or restored by the implementing agencies 21 types, such as Property and according to the former standard and size.(see telegraph poles, trees owner ground the table 4-8) annexes 2) The compensation for ground annexes shall be calculated in accordance with the pertinent provisions. Complain / All affected Free of charge. All costs reasonably incurred will

Type of Degree of impact Eligibility Compensation and resettlement policy impact ts and people be disbursed from the contingency expenses of appeals the subproject.

D Resettlement Organization To ensure that resettlement is carried out successfully and the expected results are fulfilled, a top down organization must be set up at the implementation stage to plan, coordinate and monitor resettlement activities. Since resettlement is a very comprehensive task that necessitates the assistance and collaboration of multiple departments, the communications, land and resources, and finance authorities will participate and assist in the implementation of resettlement. Each of the affected towns and villages has 1-2 leaders responsible chiefly for the assistance in resettlement. The agencies responsible for land acquisition and house demolition in the subproject include:  APCD Foreign-funded Project Management Office  AHAB  Municipal/county (including county-level municipal) highway administration bureaus (headquarters)11  Town people’s governments  Village committees (neighborhood committees)  Project design agency  Independent monitoring and evaluation agency  Other agency: Land Resource Bureau, House Demolition Office, Women Federation and Labor Bureau, etc.

E Complaints and appeals Public participation is encouraged throughout the preparation and implementation of the Resettlement Action Plan. Therefore, it is likely that great disputes will not arise. However, some unexpected issues may arise from this process. In order to address such issues and ensure the successful construction and land acquisition of the subproject, a transparent and effective appeal channel has been established. The basic procedure is as follows: Stage 1: If any right of any displaced person is infringed upon in any aspect of land acquisition and resettlement, he/she can report this to the village committee. Either the committee or the displaced person may seek for a solution from the town government through consultation. After receipt of an appeal, the town government will record it, and study a solution together with the committee and the displaced person within 2 weeks. Stage 2: If the complainant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the Tianchang Highway Administration Bureau (Headquarters) after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the complainant is dissatisfied with the disposition of Stage 2, he/she may file an appeal to AHAB after receiving such disposition, which shall make a disposition within 2 weeks.

11 A construction headquarters will be set up for the subproject based on the highway administration bureau and in conjunction with the land and resources bureau, finance bureau, auditing bureau, demolition office, communications bureau and construction bureau to be responsible for resettlement.

Stage 4: f the complainant is still dissatisfied with the disposition of AHAB, he/she may file an appeal to the administrative authorities with competent jurisdiction level by level for arbitration in accordance with the Administrative Procedure Law of the People’s Republic of China after receiving such disposition. Stage 5: If the complainant is still dissatisfied with the arbitration award, he/she may bring an action to a civil court in accordance with the Administrative Procedure Law after receiving such award. All agencies concerned will accept the affected people’ complaints and appeals free of charge, and all costs reasonably incurred will be disbursed from the contingency expenses of the subproject. At the whole construction stage, this appeal procedure will remain effective so that the affected people can use it to solve relevant issues. The above appeal channel and the right of appeal will be notified to the displaced persons through the participation process at a public meeting and the resettlement information booklet. In the meantime, appeal proceedings will be published to the affected population people through media.

F Implementation schedule of resettlement The overall progress plan for resettlement shall be developed based on the progress of land acquisition. However, this schedule shall be adjusted accordingly if the overall progress deviates. Details are shown in table 7.

Table 7 Implementation Schedule of Resettlement Responsible No. Resettlement Tasks Target Timing Status Agency 1 Disclosure 1.1 Information booklets 9 AVs PMO & AHAB 30 June 2009 1.2 RPs posted on ADB websites IA, PMO & ADB July 2009 2 Resettlement Plans & Budgets 2.1 Approval of 4 RPs & budgets (and CNY48.578mill APG and PMO July 2009 compensation rates) ion 2.2 Village rehabilitation plans 9 villages VCs Dec. 2009 2.3 Update RP after design/DMS / IA and PMO Jan. 2010 3 Detailed Measurement Surveys (DMS) 3.1 S312 AHAB 30 Nov. 2009 4 Compensation Agreements 4.1 Village land agreements 9 villages LRBs 28 Feb. 2010 4.2 Household land agreements 1341 AFs VCs 30 June 2010 4.3 House/property agreements 57 AFs LRBs Mar.-Nov. 2010 5 House Relocation 5.1 Selection & approval of sites 57 AFs Town, VCs & AFs Aug.-Dec. 2009 5.2 Site infrastructure preparation 4 sites Town & VCs Mar ~Oct. 2010 5.3 House demolition 57 houses Contractor/AFs Mar.-Aug. 2010 5.4 New house construction 57 houses VC or AFs Mar.-Dec. 2010 5.5 Moving into new houses 57 AFs AFs July-Dec. 2010 6 Implementation of Rehabilitation Measures 6.1 Land compensation payments to AFs and land adjustment (where 9 villages Towns & VCs Mar.-June 2010 applicable) 6.2 Implement village rehabilitation 9 villages VCs Jan.-Dec. 2010 plans 6.3 Advice for income restoration, Towns, VCs, 1341 AFs Apr.-Aug. 2010 starting business & jobs Labor, ACF 6.4 Implement Training programs 1341 AFs Labor Offices May-Dec. 2010 6.5 Identify vulnerable AF and Labor & Social ~200 AFs Feb.-June 2010 implement support measures Security, PMO 6.6 Identifying and hiring AF for PMO, Labor, Apr. 2010 to Dec. ~1500APs project construction contractors 2012 7 Resettlement Capacity Building

Responsible No. Resettlement Tasks Target Timing Status Agency 7.1 Training for ACIG, AHAB & LRB 10 people ADB Dec. 2009 7.2 Training for county & town officials 50 officers and PMO and LRB Jan.-Feb. 2010 and village leaders leaders 8 Monitoring & Evaluation 8.1 Baseline surveys One RP Monitor 31 Dec. 2009 8.2 Set-up internal supervision As per RP PMO & IA 31 Dec. 2009 8.3 Contract external monitor One PMO 30 Nov. 2009 8.4 Quarterly (as Commencing Internal monitoring reports PMO & IA required) 31 Mar. 2010 8.5 July 2010 1st Report External monitoring reports Semi-annual Monitor Jan. 2011 2nd Report July 2011 3rd Report 8.6 Jan. 2012 1st Report External evaluation reports Annual Monitor Jan. 2013 2nd Report 8.7 Resettlement Completion Reports One Report IA & PMO June 2013 9 Documentation of Consultation IA Ongoing 10 Documentation of Grievances IA Ongoing 11 Flow of Land Compensation and Resettlement Funds 11.1 - To IAs Initial funds Feb. 2010 11.2 - To villages Most of funds IA Mar.-June 2010 11.3 - To households Most of funds IA, VCs Mar.-Aug. 2010 12 Commence Land Acquisition and Civil Works 12.1 S312 AHAB 31 Mar. 2010 AF=affected family; AP=affected person; AV=affected village; IAs=Implementing Agencies; APG=Anhui Province Government; PMO=Project Management Office; AHAB=Anhui Highway Administration Bureau; LAR=land acquisition and resettlement; RIB=resettlement information booklet; RP=resettlement plan; VC=village committees.