Central Yunnan Roads Development Project

Home , Hani people, Lisu people, Yi people

Ethnic Minorities Development Plan

Ethnic Minorities Development Plan Document Stage: Draft Project Number: 36455 May 2007

PRC: Central Yunnan Roads Development Project

Prepared by Yunnan Provincial Communications Department for the Asian Development Bank (ADB).

The ethnic minorities development 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.

DRAFT ETHNIC MINORITIES DEVELOPMENT PLAN

Central Yunnan Roads Development Project

May 2007

Yunnan Provincial Communications Department The ethnic minorities development 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.

Endorsement of the Ethnic Minorities Development Plan

Yunnan Provincial Communications Department (YPCD), through the Central Government, has requested a loan from ADB to finance part of the Central Yunnan Roads Development Project. This Ethnic Minorities Development Plan (EMDP) represents a key requirement of ADB and will constitute the basis for ensuring the equitable sharing of project benefits and specifying required mitigation measures to address the adverse efforts for the ethnic minorities in the project area. The EMDP complies with PRC laws and local regulations but includes some additional enhancement measures and implementation and monitoring arrangements.

YPCD hereby endorses the contents of the attached EMDP and ensures that funds will be made available as stipulated in the budget. YPCD has discussed the EMDP with relevant local officials and has obtained their concurrence.

Approved on 27 April 2007

Director, YPCD

TABLE OF CONTENTS

I. INTRODUCTION 1 II. BACKGROUND 2 A. Project Description 2 B. Legal Framework 2 1. Government Policies, Plans, and Programs on Ethnic Minorities 2 2. ADB Indigenous People’s Policy 3 C. Poverty Reduction and Development 3 III. ETHNIC MINORITIES IN THE PROJECT AREA 7 A. Population and Location 7 B. Main Ethnic Groups 7 1. Yi 8 2. Bai 8 3. Hani 8 4. Dai 9 5. Miao 9 6. Lisu 9 7. Hui 9 C. Socioeconomic Characteristics of Minority Communities in PA 10 1. Poverty 10 2. Household Size 10 3. Income Pattern 11 4. Landholding 12 5. Education and Income Generation Skill 13 6. Economic Geography Categories 17 D. Comparative Vulnerable Groups 17 E. Target Areas and EMs groups 18 IV. ISSUES 19 A. HIV/AIDS and STIs Issues 19 B. Gender aspects 21 V. STAKEHOLDERS CONSULTATION 24 A. Perceived Project Benefits 24 1. Agricultural Produce 25 2. Migrant labor 26 3. Promoting Off-farming Business 28 4. Benefits for Social Services 29 VI. ETHNIC MINORITY ACTION PLAN 30 A. Project Benefit and Enhancement Measures 30 1. Project Benefits 30 2. Enhancement Measures 31 B. Project Impact and Mitigation Measures 31 1. Land Acquisition and House Demolition 32 2. HIV/AIDS and other transmissible Disease 32 3. Human and drug trafficking 33 4. Community Disturbance during project construction 33 C. Complementary Poverty Reduction Measures 34

D. Consultation and Disclosure 35 E. Implementation Arrangements and Funding 35 F. EMDP Monitoring and Evaluation 36 1. Implementation Agencies 36 2. Monitoring and Reporting 36

Annex 1 – Terms of Reference for the EMDP External Monitor

iii

LIST OF TABLES

TABLE 3.1 ETHNIC MINORITY POPULATION IN PROJECT AREA ...... 7 TABLE 3.2 POVERTY INCIDENCE AND MINORITY DISTRIBUTION IN PA AND YUNNAN ...... 10 TABLE 3.3 HOUSEHOLD SIZE...... 10 TABLE 3.4 PERCENTAGE OF HEAD OF HOUSEHOLD BY MALE AND FEMALE...... 11 TABLE 3.5 HOUSEHOLD GROSS INCOME BY NATIONALITY GROUPS ...... 11 TABLE 3.6: HOUSEHOLD INCOME PATTERN AMONGST MINORITY GROUPS IN THE PROJECT AREA.....11 FIGURE 3.1 INCOME PATTERN AMONGST SURVEYED HOUSEHOLDS BY ETHNIC GROUPS ...... 12 TABLE 3.7 HOUSEHOLD LANDHOLDING DIFFERENTIALS AMONGST MINORITY GROUPS IN THE PA .....13 FIGURE 3.2 AVERAGE HOUSEHOLD LANDHOLDING BY NATIONALITY GROUPS ...... 13 TABLE 3.8 AVERAGE EDUCATION YEAR OF HH MEMBER ...... 13 TABLE 3.9 YEARS OF EDUCATION OF ADULTS BY NATIONALITY GROUPS...... 14 TABLE 3.10 NUMBER OF MEMBERS WITH SPECIAL OFF-FARMING SKILLS IN HH ...... 14 TABLE 3.11 ECONOMIC DIFFERENTIALS AMONGST MINORITY GROUPS IN THE PROJECT AREA ...... 15 FIGURE 3.3 HOUSEHOLD GROSS INCOME BY NATIONALITY GROUPS...... 15 FIGURE 3.4 AVERAGE EDUCATION YEARS OF HOUSEHOLD ADULT MEMBER ...... 15 FIGURE 3.5 HOUSEHOLD INCOME VS EDUCATION...... 16 FIGURE 3.6 HOUSEHOLD INCOME VS HOUSEHOLD LANDHOLDING...... 16 TABLE 3.12 BASIC CHARACTERISTICS OF VILLAGE FOUND IN THE PROJECT AREA ...... 15 TABLE 4.1 KNOWLEDGE ON HIV/AIDS AMONG SURVEYED HOUSEHOLD MEMBERS ...... 19 TABLE 4.2 POSSIBLE APPROACHES TO ADAPT EXPERIENCE FROM BAOLONG TA ...... 20 TABLE 4.3 EDUCATION LEVEL OF WORKING AGE BY GENDER...... 21 TABLE 4.4 OFF-FARMING INCOME GENERATION SKILLS BY GENDER ...... 21 TABLE 4.5 GENDER LABOR DIVISION ...... 22 TABLE 4.6 GENDER DISAGGREGATED DATA ON DECISION MAKING...... 22 TABLE 5.1 VILLAGERS’ PRIORITIES FOR DEVELOPMENT...... 24 TABLE 5.2 HOUSEHOLDS COULD PRODUCE GREATER YIELDS IN THE CONDITION OF:...... 26 TABLE 5.3 LONG TERM MIGRANT LABOR BY SOCIAL GROUPS ...... 26 TABLE 5.4 SHORT TERM MIGRANT LABORS IN THE PROJECT AREA...... 27 TABLE 5.5 LONG TERM MIGRANT LABOR OF SELECTED COUNTIES IN THE PROJECT AREA ...... 27 TABLE 5.6 HOUSEHOLDS WITH OWN OFF-FARMING LOCAL BUSINESS ...... 28 TABLE 5.7 NUMBER OF MEMBERS WITH SPECIAL OFF-FARMING SKILLS IN HH ...... 28 TABLE 6.1 POTENTIAL BENEFITS IDENTIFIED BY VILLAGERS IN THE PROJECT AREA...... 30 TABLE 6.2 POTENTIAL IMPACTS IDENTIFIED BY VILLAGERS IN THE PROJECT AREA ...... 31 TABLE 6.3 SUMMARY OF EMDP 2007–2010 ...... 37

ABBREVIATIONS

ADB – Asian Development Bank ACWF – All China Women’s Federation BP – Bank Procedures CDC – Center for Disease Control DPA – Direct Project Area EMDP – Ethnic Minorities Development Plan FGD – Focus Group Discussion GDP – Gross Domestic Product HIV/AIDS – Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome. IDU – Intravenous Drug Users IPA – Indirect project area km – Kilometer MIS – Management Information System M&E – Monitoring and Evaluation NGO – Non-governmental Organization OP – Operational Manual PA – Project Area PADO – Poverty Alleviation and Development Office PEC – Project Execute Company YEAC – Yunnan Ethnic Minority Affaires Committee PRA – Participatory Rural Appraisal PRC – People’s Republic of China STI – Sexually Transmitted Infection WDS – Western Development Strategy WF – Women’s Federation YPG – Yunnan Provincial Government

I. INTRODUCTION

1. This ethnic minorities development plan (EMDP) has been prepared to ensure the equitable sharing of project benefits and to specify required mitigation measures to address adverse effects for ethnic minorities1 in the Project area (PA) of the Central Yunnan Roads Development Project (the Project) in the People’s Republic of China (PRC). Adequate measures to enhance the economic conditions of vulnerable groups, including ethnic minorities have been integrated in Project design. Provisions for special mitigation measures have been included in the resettlement plan, which will help ensure that vulnerable groups, including ethnic minorities adversely affected by resettlement will also benefit from the project. Current government policies and programs for minority nationalities further help to protect and enhance project benefits to ethnic minority groups. The EMDP synthesizes information from these various sources to form a stand-alone document, which ensures compliance to Asian Development Bank (ADB) Policy on Indigenous Peoples.

1 Ethnic minority groups refers to those groups that are different from the majority ethnic group—the Han.

II. BACKGROUND

A. Project Description

2. The proposed Expressway connects to the ending point of the ongoing Yuanmou- Wuding Expressway in Wuding County of Chuxiong Yi Minority Autonomous Prefecture, and passes through Fumin County and Wuhua District of Kunming Municipality, linking with Kunming Northwest Ring Road before entering Kunming City. The expressway is 64.7km long and with 4.2km of connector roads. The Project will also include upgrading 190km of local roads in Wuding, Fumin, Xishan and Wuhua counties/districts and expansion of four township passenger centers in Wuding, Fumin, and Luquan counties. The Project will benefit 1.93million residents in the Project Area of which 478,000 or 24.8% belong to ethnic minority groups.

B. Legal Framework

1. Government Policies, Plans, and Programs on Ethnic Minorities

3. After 1949 the PRC Government adopted a policy of ethnic equality, in which all groups are legally and constitutionally equal. This policy was a type of positive discrimination in favor of the minority nationalities (minzu), to help them "catch up" with the mainstream population. To implement this policy, the Government first clarified, enumerated and mapped the identity of ethnic groups. PRC post-1949 policy defines nationalities (minzu), based on, shared language, territory, economic base, and traditions/culture. Under this definition, the Han constitute the majority nationality in the PRC. Some minority nationalities (e.g., Hui and Man) have become assimilated to some degree into the Han language and cultural traditions, but are still recognized as minority nationalities.

4. Non-Han nationalities were officially registered during the 1950s in a systematic process of research, interpretation and discussion with minority group representatives. Autonomous minority prefectures and counties have been established. There are now 55 minority nationalities officially recognized. They are concentrated in 3 provinces (Guizhou, Yunnan and Qinghai provinces) and the 5 minority autonomous regions (Inner Mongolia, Xinjiang, Guangxi, Ningxia and Xizang). Nationality autonomous areas have representation in government bodies at all levels, and government subsidies have been substantial in the following areas: special access to relief funds, loans, subsidies and tax relief, including a lower agriculture tax to assist in economic development). For instance, in Wuding, Fumin and Luquan, every year, there is a special project to provide financial support to those ethnic minority students who passed the national exam for university entry but face difficulties to involve in university study due to poverty.

5. The 1954 Constitution specified mechanisms for exercising autonomy in minority areas. Since the early 1980s governments of autonomous areas have been able to decide on economic policy, including what to produce, some latitude in allocating government subsidies, and within set guidelines, education and budgeting based on the Law on Ethnic Regional Autonomy (1984).

6. Programs in 2005 include Ethnic Minority Opportunity Funds founded project and Ethnic Minority Funds Project. Around CNY 2 million for 25 projects were founded in the project area. The projects covered small community facilities, cultural events such as Miao costume demonstration, Yi and Miao music documentation, Miao “Huashan Festival” and “Yi torch festival”.

2. ADB Indigenous People’s Policy

7. In 1999, the ADB formally declared poverty reduction as its overarching goal. The ADB Poverty Reduction Strategy describes poverty as an unacceptable human condition that can be eliminated through public policy and action and that effective poverty reduction can only be achieved through promoting economic opportunities, social development and good governance.

8. The ADB’s Indigenous Peoples Policy 1998 and associated strategies and approaches recognize the potential vulnerability of indigenous peoples in development processes. The policy works to ensure that indigenous peoples have opportunities to participate in and benefit equally from development. Accordingly, project activities must ensure that development initiatives affecting indigenous peoples are effective and sustainable. Initiatives should be compatible in substance and structure with the affected peoples' culture and social and economic institutions, and commensurate with the needs, aspirations, and demands of affected peoples. Initiatives should be conceived, planned, and implemented, to the maximum extent possible, with the informed consent of affected communities, and include respect for indigenous peoples' dignity, human rights, and cultural uniqueness. Projects must avoid negatively affecting indigenous peoples, and provide adequate and appropriate compensation when a negative impact is unavoidable. Project strategies and approaches to development that affect indigenous peoples must include clear mechanisms for accurate, objective analysis of their circumstances. Development processes must incorporate transparency and accountability.

9. The ADB defines "indigenous peoples" as groups with social or cultural identities distinct from that of the dominant or mainstream society. "Indigenous peoples" is a generic concept that includes cultural minorities, ethnic minorities, indigenous cultural communities, tribal people, natives, and aboriginals.

10. Two significant characteristics of indigenous peoples are (i) descent from population groups present in a given area before modern states or territories were created, and (ii) maintenance of cultural and social identities separate from mainstream or dominant societies or cultures. Additional characteristics include (i) self-identification and identification by others as being part of a distinct indigenous cultural group, and the display of the desire to preserve their cultural identity; (ii) a linguistic identity different from that of the mainstream or dominant society; (iii) social, economic, and political traditions and institutions distinct from the mainstream society; (iv) an economic system oriented more toward a traditional system of production than toward the mainstream production system; and/or (v) a unique tie with and attachment to traditional habitat and ancestral territory and its natural resources.

C. Poverty Reduction and Development

11. At the project level, the poverty reduction plan is closely related to ethnic minority development. This is because ethnic minorities are located mainly in remote and mountainous areas, where the poverty incidence rate is high.

12. Poverty reduction efforts began in Yunnan in the mid 1980's, at which time an estimated 12million people were extremely poor. In 1994, the Central Government and the Yunnan Provincial Government identified 73 counties as key poverty counties to focus on reducing poverty for 7.83million extremely poor.

13. Special funds and programs have been set up for poverty alleviation and minority development in Yunnan. For instance, Yunnan Provincial Government launched the Seven for

Seven poverty alleviation program in 1994—solving the food and clothing problems of 7 million rural poor in 7 years (1994-2000). The program was designed to help the poor improve productivity through different approaches, thus improving standard of living. The program included:

i. Road development to improve road access to the poor townships and villages; ii. Rural water projects to improve irrigation and potable water supply; iii. Farmland improvement to ensure each person had 1 mu of basic farmland and each household had 1 mu high quality farmland for food security; iv. Greater coverage of electricity to ensure every village had access to electricity; v. Technology demonstration projects to promote the application of new technology, strengthen extension in poor areas and equip each poor household with 1-2 new skills in cultivation, livestock or processing; vi. Expansion of education availability to improve school facilities and provide scholarships enabling poor children to attend school; vii. Health program to improve rural clinic facilities and health care services; viii. Forest improvement to help the poor generate income from good forest management and commercial tree cultivation.

14. The use of poverty alleviation funds included grants and loans. The grants were mainly used for developing infrastructure, through project funds or “work for food” programs. Another use of the grants was the provision of technology and service training. Loans (including micro- credit) were mainly used to support the poor for income generation through crop production, raising livestock, processing and other income-generating activities. About 900 townships in 119 counties have implemented micro-credit programs. Total amount of loans provided is equivalent to about CNY 1.4 billion.

15. During 10th five year plan implementation (2001-2005) around 16 billon yuan were invested into poverty alleviation, targeted about 10 million of its population poor. With respect to ethnic minorities, poverty alleviation programs included:

i. Food Security and Housing Program: 5,000 extremely poor natural villages ii. Integrated Minority Poverty Alleviation Program: 4,000 poverty administrative villages, and 100 poor minority townships iii. Border Area Poverty Township Development Plan: 100 poor townships in border areas iv. Relocation program: Initiated in 1996 to help the poor living in difficult physical conditions. v. Food for Work and Micro-Credit Programs: 73 poverty counties.

16. Based on the above programs and targets, the following provide direct benefits to minorities in the project area:

i. Food Security and Housing Program targeted 130 natural villages, 40 villages in Wuding, 50 villages in Luquan, 10 villages in Fuming and 30 villages in Lufeng county, in the PA to develop their farming and livestock and help improve their housing. It has already targeted.

ii. Relocation Program targeted most of the poor in the PA who are unable to achieve basic living conditions and are willing to be relocated.

iii. The Integrated Minority Poverty Alleviation Program targeted Dongpo minority township in Wuding and Dasong Minority Township in Luquan. The program provides each township with CNY 4.0 million in grants to support: (a) farmer’s working capital and agricultural technology training in farming, livestock production and processing; (b) infrastructure improvement like irrigation and road projects; and (c) essential social services such as health care and education.

iv. The Integrated Village Development Plan for Poverty Village Program provides CNY 200,000 for each selected poverty sub-villlage’s poverty alleviation plan. The assistance aims helping develop their farming, livestock production, food processing, and necessary community infrastructure. The villages will obtain additional funds in the form of micro- credits. Within the PA, total 112 poverty villages have been targeted by this program. Out of the targeted population, more than 50% are minorities.

v. The Food for Work and the Micro-credit for Poverty Reduction Programs target all 73 key poverty alleviation counties Yunnan. Within the PA counties, Wuding and Luquan minority autonomous county are included.

17. Aside from the poverty alleviation program, the government at various levels also has implemented a road development plan to promote local roads development in the project area. Roads links to poor minority villages were given high priority.

18. The 10th five year poverty reduction achieved:

i. Reduced poverty population from around 10 million in year 2000 to 7.38million in 2005. Poverty incident ratio in rural area reduced from 29.6% in year 2000 to 21% in year 2005.

ii. New built or improved village road 31,000km in poverty areas, built or improved rural electricity supply wire line 58,000km and 92.9% sub-villages has electricity access. 4.18million people and 2.48million head of livestock benefited from potable water, 84% of administrative villages had road access and 95.4% had telephone access.

iii. 350,000 poor population were relocated to better place on a voluntary basis under the government subsidy. Total 304,000 poor HH in around 40,000 sub-villages benefited from Food Security and Housing Program and built a new house.

iv. Economic development in the poverty area improved. GDP per person increase 566 yuan, increased 14.1% which is higher than the provincial average increase of 10%.

v. More than 730,000 households with 3million poor people in 5,110 sub-villages of 1,274 administrative villages benefit from the Integrated Poverty Alleviation Program.

vi. Cash trees, cash crops, livestock development and technology training built a good base for the future development for the poverty villages. There are over 20million mu cash crops with 3 million newly planted, and 15million mu cash trees with 4million newly planted in the poverty area.

19. A number of common programs were implemented in Yunnan targeted the project area with priorities given ethnic poor. These programs include:

i. Integrated Village Development Plan for poverty villages: each poverty sub-village will receive 200,000 yuan to support their infrastructure improvement, social service facilities and income generation activities based on the needs of the villages. Total 5110 sub- village in 1274 administrative villages has implemented this plan and the plan will continue to target 30,000 poverty sub-villages in the 4,000 poverty villages in 11th five year plan. Total funds required 6 billion. ii. Micro-credit Program: Providing loan to poor HH from poverty village or from urban poor with interest subsidized by government. Each county in the PA have 5-6 million yuan a year. iii. Partnership Program: Organizations establish partnership relationship with the poverty counties, townships and villages to provide support for poverty reduction. The support includes financial support, training or information service, and goods grant. The organizations include government agencies, state owned enterprises or other entities. iv. Land Conversion: Nation wide government project. The government provide subsidy to the villagers to convert sloping farming land into forest/grass land. It is not a poverty reduction program but due to most sloping farming land being in the poverty area, the project actually serves as a poverty reduction program. v. Relocation Program: to relocate the villagers who are living in the area with natural conditions inadequate for human inhabitancy, namely cold weather, water scarcity, and rocky areas with very limited farming land. The relocation is on a voluntary basis. Government provide per capita 5000–10000 yuan financial support to built the infrastructures of the new inhabitant area and provide relocation fees. vi. Organized migrant labor: Poverty Alleviation and Development Office organized in each county provides support to the poor to be migrant labor. PADO responsible to coordinate the employers, provide basic trainings and consultations to the poor who are interested in migrant labor. vii. Hand in hand program: Urban individuals, especially those worked in government agencies were encouraged to establish 1:1 relationship with rural poor household. The urban household usually provide financial or information service to the poor household. viii. In addition to the above province wide or nation wide projects, each county also initiated special poverty reduction program with their own funds or with support from international development organizations or NGOs. Such as Luquan and Wuding, as national defined poverty county, attracted more attention from international and domestic development community. WB, Aide Foundation, UNDP and Oxfam have projects in these two counties. ix. The “Food for Work and Micro-Credit Programs for Poverty Reduction" targeted Wuding and Luquan County in the PA.

III. ETHNIC MINORITIES IN THE PROJECT AREA

A. Population and Location

20. All 56 nationalities have appeared in the project area. Aside from Han, the major ethnic groups include Yi, Bai, Hani, Dai, Miao, Lisu and Hui. Total minority population in project area amounts to 477,670 people, or 24.8% of the total population. See Table 3.1.

Table 3.1 Ethnic Minority Population in Project Area Project Area Nationality Wuhua Fuming Luquan Wuding Lufeng Total TOTAL 660992 138152 447508 264894 416668 1928214 Han 567950 119611 311128 129587 322268 1450544 sub-total minority 93042 18541 136380 135307 94400 477670 % 14.1 13.4 30.5 51.1 22.7 24.8 Yi 20417 10087 99161 77251 67460 274376 % 3.1 7.3 22.2 29.2 16.2 14.2 Bai 25421 725 198 72 1201 27617 % 3.8 0.5 0.0 0.0 0.3 1.4 Hani 2802 95 1207 738 229 5071 % 0.4 0.1 0.3 0.3 0.1 0.3 Dai 3847 65 4496 6823 254 15485 % 0.01 0.00 0.01 0.03 0.00 0.01 Miao 3497 6744 12858 20759 15872 59730 % 0.01 0.05 0.03 0.08 0.04 0.03 Lisu 1195 88 14081 28628 2663 46655 % 0.18 0.06 3.15 10.81 0.64 2.42 Hui 19574 486 980 926 6219 28185 % 2.96 0.35 0.22 0.35 1.49 1.46 Other Minorities 16289 251 3399 110 502 20551 % 2.46 0.18 0.76 0.04 0.12 1.07 *Defined as the townships through which that the expressway will pass. Source: Yunnan Yearbook, 2005, County Yearbooks, 2005

B. Main Ethnic Groups

21. All Ethnic groups in the project area live harmoniously. Aside from the differences described below, there are some common characteristics. First, those who live along the main road or township center areas are bilingual speakers; they have no difficulties in communicating in Chinese and their own languages. Only those who live in the remote villages have language barriers. Secondly, minority groups were involved in all types of business, such as agriculture, off-farming business and migrant labor; those who live in the remote areas are involved less regardless of what nationality they are. Thirdly, all minorities keep their own festivals while they share the ceremony activities with others. Therefore, there are many festivals in the project area, for example, other groups join the Yi people to celebrate the “Torch Festival”, join the Miao

people to celebrate the “Huashan Festival”, join the Lishu people to celebrate the “Knife Festival”, etc.

1. Yi

22. The Yi nationality used to believe in many gods and worshiped ancestors. Some people who lived with Han people also believe in Buddhism. The Yi people also have their own language, which belongs to the Yi branch of the Zang-Mian Austronesian of Han-Zang Phylum. Yi characters, are the earliest syllabic script in China, were formed in the 13th century and are still used today. A number of works of history, literature and medicine as well as genealogies of the ruling families written in the old Yi script are still seen in most Yi areas. Due to cultural and economic exchanges with the Han, more and more Yi people learn to use the Han language and characters in daily life.

23. Most Yi people engage in agriculture and a small percentage of them raise livestock. People living in the plains take rice, maize, wheat and yams as their staple food while those in the frigid mountainous areas mostly depend on maize, buckwheat and yams. Complements to their main food source include vegetable, legume, fruits, pork, mutton and beef.

24. There are 274,376 Yi people living in the project area, distributed in all counties/districts of the project area.

2. Bai

25. The language of the Bai belongs to the Zang-Mian Austronesian of Han-Zang Phylum. They have also invented their own written characters by referring to the Han's characters. Thus many words are in fact taken from the Han language. The Bai people mainly believe in "Benzhu" (village god). In each village and region, the Benzhu has a different meaning attached to it. Some are referred to as the God of Nature, others as national heroes, famous officers, and as loyal women. A small group of them also believe in ghosts and Buddhism. The Bai people prefer the color white. Men like to wear white shirts while women's clothing differs from place to place.

26. The Bai ethnic group mainly relies on agriculture. The main crops are rice, winter wheat, beans, millet, cotton, rape, sugarcane and tobacco. People living in the plains rely on rice and wheat as their staple food and those in mountain areas mostly depend on corn, yam and buckwheat. Pickles and bean sauce are famous snacks of the Bai people.

27. There are 27617 Bai people who live in the project area.

3. Hani

28. The Hani ethnic group shares the same origin with the Yi and Lahu ethnic groups. According to the historical records, they all evolved from the ancient Qiang people. The Hani ethnic group comprises over twenty subgroups. They used to be called Hani, Heni, Budu, Biyue, Yani, etc. With the founding of the PRC in 1949, following consultation with the ethnic group, it was decided to agree upon the official name of Hani ethnic group. The Hani people have their own language. They had no written script in the past and used to keep records by carving notches on sticks. The Hani people live in wooden houses that are warm in the winter and cool in the summer. The roofs are flat and are used to dry grain. They stick to the hills, cultivating

9 rice, corn and occasionally poppy. Trading takes place at weekly markets where the Dai dominate the Hani, who seem only too keen to return to their mountain retreats.

29. There are total 5071 Hani people who live in the project area.

4. Dai

30. Dai is a major ethnic minority group in Yunnan mainly distributed in the southern part of Yunnan and the downstream area of the main river of Yunnan. The Dai have their own language and written characters. They mainly believe in Theravada. The Dai ethnic group mainly relies on agriculture. The main crops are rice, sugarcane and tobacco.

31. There are 15485 Dai people in the project area located mainly in Dongpo township of Wuding in the project area.

5. Miao

32. The Miao people originated from Hunnan but migrated to Guizhou and Scicuan during the Qin dynasty. Some 500 years ago, during the Ming and Qing dynasties, the Miao people started to migrate from Guizhou to Longlin and Xilin where large populations remain today.

33. Overall, there are 59,730 Miao people in the project area, who mainly live in Luquan, Wuding and Lufeng. The Miao people mainly live in mountainous areas where farming conditions are difficult. The Miao people maintain their culture and traditions and normally wear their colorful traditional ethnic costumes.

6. Lisu

34. The Lisu people mainly engage in agriculture and the chief products are maize, paddy and buckwheat. Hunting also plays an important role in their life. The Lisu people believe that everything in the world has its god, and they worship nature. Necromancers host the sacrifice offering ceremonies. Lisu women often wear an embroidered jacket, flax skirt and various ornaments such as shells, coral, beads, silver coins, and agate, with white cloth around their head, big copper loops and silver loops on ears. Men normally wear a jacket with a flax gown outside. Some wear a black turban with a knife hanging on his left waist, and an arrow on his right.

35. There are 46,655 Lisu people who live in the project area, and are distributed in all counties/districts of the project area, mixed with other groups in the villages. Very few villages are purely Lisu group.

7. Hui

36. The Hui minority are descended from the Arab and Iranian traders who traveled to China during the Tang Dynasty. Immigrants from Central Asia increased their numbers during the Yuan Dynasty. The Hui have a wide variety of occupations that relate to Islamic restrictions on diet and hygiene: restaurateur, innkeeper, shepherd, farmer, cavalryman, butcher, tanner, tea trader, jeweler, interpreter and clergyman. The Hui enjoy many privileges that characterize China's ethnic minorities: they receive government subsidies for the more expensive beef and mutton. They are allowed more than one child. The government has also subsidized the reconstruction of mosques and has given permission for Islamic literature to be published and

sold. The Hui are essentially the same as the Han, except that they are Muslim, the Islamic religion having been introduced by Arab soldiers and merchants 1,200 years ago. There are total 28185 Hui people who live in the project area.

C. Socioeconomic Characteristics of Minority Communities in PA

1. Poverty

37. Applying the figure of 944 Yuan per year as used by local government, it was determined that in Yunnan there were a total of 7.38 million persons living in poverty in the year 2005. Of these, 2.37 million can be classified as extremely poor with an average annual income of less than 683 Yuan. The poverty population in minority counties amounts 64.7% of the total poverty population.

38. In the project area, the average poverty incidence rate is approximately 24.9% while it ranges from a high of 36.6 % for Wuding County to a low of 2% for Wuhua District. Amongst the 5 counties/district composing the project area, the northern two counties, Wuding and Lufeng, have been identified as key areas for poverty alleviation. Both counties have a relatively higher proportion of ethnic minority population (30.6% and 50.9% respectively) (See Table 3.2). More than 50% of the poverty population in the project areas are ethnic minorities.

Table 3.2 Poverty Incidence and Minority Distribution in PA and Yunnan Poverty Incidence Ratio Project Rural No. of key No. of key Poverty population % of No. of No.of Counties population poverty poverty Minority Townships village <944 districts (10,000) county village <683 yuan <683yuan <944Yuan Population yuan Wuhua 10 66 5.3 0 0 530 1060 1% 2.0% 14.1 Fuming 9 75 12 0 16 6312 21506 5% 17.9% 13.0 Wuding 13 126 24.6 1 108 63352 90119 26% 36.6% 30.6 Luquan 18 195 42.2 1 40 22160 124900 5% 29.6% 50.9 Lufeng 18 163 34.4 0 20 28475 57019 8% 16.6% 22.8 Total DPA 68 625 118.5 2 184 120829 294604 10% 24.9% 24.8 Yunnan 2286 13198 3691.1 73 4000 2484000 7378000 7% 20.0% 36.3 Source: Consultants’ calculation based on field interviews to the Poverty and Development Offices.

2. Household Size

39. The field household survey yielded information on household size and the dependency ratio by social group. The average HH size was 4, the maximum is 7. There is no big difference between Han and Minorities. Table 3.3.

Table 3.3 Household Size Item 1-2 3-4 5-6 more than 6 Total Average persons persons persons persons household size

Total HH 14 85 68 5 172 4.28 % 8.2 49.4 39.5 2.9 100 4.28 % of Han HH 6.3 45.3 46.3 2.1 100.0 4.33 % of Minority HH 10.4 54.5 31.2 3.9 100.0 4.22 Source: Field HH survey. Sample size 172 including 77 minority HH.

40. As elsewhere in China, the households are generally headed by men rather than by women. There are no significant differences between Han and ethnic minority groups. See Table 3.4.

Table 3.4 Percentage of Head of Household by Male and Female Male Female TOTAL No. of Total Household 159 13 172 % of total HH 92.4 7.6 100 % of Han HH 90.5 9.5 100.0 % of Minority HH 94.8 5.2 100.0 Source: Field HH survey. Sample size 172 including 77 minority HH.

3. Income Pattern

41. Based on the field household survey, gross income varies by nationality group. See Table 3.5. Bai ranks as number one, followed by Han, Hui and Yi. The Lisu and Miao at the bottom.

Table 3.5 Household Gross Income by Nationality Groups Ethnic Group Yi Bai Hani Miao Lisu Hui Han CNY per annum 9,139 16,420 6835 3617 4573 10190 13235 Ranking 4 1 5 7 6 3 2 Source: Field HH survey. Sample size 169 including 77 minority HH.

42. Apart from the differences in household gross income between ethnic groups, Table 3.6 and Figure 3.1 also indicate different income patterns. In general, aside from other income, off- farming income and migrant labor income is an important source for all households. Agro-crops and livestock comprise more than 50% of income sources of the Yi, and Hani, as they have more landholding. Meanwhile, the Bai, Hui and Han obtain their income mainly from off-farming activities and migrant labor (more than 50%). The possible reasons being: (i) Most Han, Bai and Hui surveyed live in the valley area along G108, convenience to be involved in off-farming activities and migrant labor. (ii) Bai group located in Shaliang township of Wuhua district is close to Kunming and is able to benefit from urban economic development opportunities.

Table 3.6: Household Income Pattern amongst Minority Groups in the Project Area Income sources Ethnic group Total Agro- Migrant crops Livestock NTFP Off-farming Labor CNY 5533 2625 56 0 925 9139 Yi % 60.5 28.7 0.6 0.0 10.1 100.0 Ranking 1 2 4 5 3 CNY 1850 310 0 6300 7960 16420 Bai % 11.3 1.9 0.0 38.4 48.5 100.0 Ranking 3 4 5 2 1 CNY 2950 1667 42 0 2177 6835 Hani % 43.2 24.4 0.6 0.0 31.9 100.0 Ranking 1 3 4 5 2 CNY 1350 487 451 725 605 3617 Miao % 37.3 13.5 12.5 20.0 16.7 100.0 Ranking 1 4 5 2 3

CNY 254 1175 44 1000 2100 4573 Lisu % 5.6 25.7 1.0 21.9 45.9 100.0 Ranking 4 2 5 3 1 CNY 2550 640 0 5000 2000 10190 Hui % 25.0 6.3 0.0 49.1 19.6 100.0 Ranking 2 4 5 1 3 CNY 3279 1475 114 2449 5917 13235 Han % 24.8 11.1 0.9 18.5 44.7 100.0 Ranking 2 4 5 3 1 Source: Household Surveys (2006).

Figure 3.1 Income Pattern Among Surveyed Households by Ethnic Groups

Household income sources by ethnic group

Han

Hui

Lisu

Miao

Hani

Bai

0 2000 4000 6000 8000 10000 12000 14000 16000 18000

Agro-crops Livestock NTFP Off-farming Migrant Labor

4. Landholding

43. Household total landholding is various according to their location. For example, in the remote mountainous areas, there is more dry land and forest land, valley areas have more irrigated land and less forest land. Landholding also relates to population density of sub-village because land allocation was based on the sub-village population and land resources.

44. The quality and types of land also make a difference. Table 3.7 shows household landholding by land categories. For example, Hani has much larger total landholding than other ethnic groups, but most of their land is forest land, through which people can not get profit directly. Access to irrigated landholding is a good indicator of poverty, but not necessary an indicator of wealth. For example, even though the Bai have middle level ownership of irrigated land holding, they have the highest gross income wit the exception of the Han. This is because much of their income is derived from their off-farming activities rather than their agriculture. The surveyed Bai households have the highest proportion of off-farming and migrant labor income. See Table 3.7 and Figure 3.3.

Table 3.7 Household Landholding Differentials amongst Minority Groups in the PA Type of Land Ethnic Groups Total Irrigated land Dry land Orchard Forest Fish Pond Yi 0.21 7.34 1.49 0.11 0 9.14 Bai 0.98 1.18 0.66 0.09 0 2.91 Hani 1.74 4 0.21 28.57 0 34.53 Miao 0.44 3.66 1.5 1.3 0 6.9 Lisu 1.56 3.45 0.65 0.8 0 6.46 Hui 1.4 3.57 2.43 1.73 0.01 7.52 Han 1.84 3.21 3.36 0.55 0.01 8.96 Total HH 1.4 3.57 2.43 1.73 0.01 9.14 Source: Household Surveys (2006).

Figure 3.2 Average Household Landholding by Nationality Groups

0 Yi Bai Hani Miao Lisu Hui Han

Irrigated land Dry land Orchard

Source: Household Surveys (2006).

5. Education and Income Generation Skill

45. The average number of years of completed schooling by adults within the household is taken as an indicator of human capital. Based on a household survey of 172 households in 30 villages (including 77 ethnic minority households), Average education year of minorities groups is lower than the average of total households or Han (Table 3.8).

Table 3.8 Average Education Year of HH Member Average Social Groups Education <3 year 3-4yr 4-6yr 6-9yr 9-12yr >12yr Year Total HH 5.95 17 20 44 83 7 1 % of total HH 9.9% 11.6% 25.6% 48.3% 4.1% 0.6%

Han HH 6.28 6 12 20 50 6 1 % of Han HH 6.3% 12.6% 21.1% 52.6% 6.3% 1.1% Minority HH 5.55 11 8 24 33 1 0 % of Minority HH 14.3% 10.4% 31.2% 42.9% 1.3% 0.0% Source: Field 172Household survey

46. Difference of adult education level is also found among different ethnic groups. Han adults ranked the highest on this, followed by Hani and Bai. The Lisu and the Hui come out the lowest on this indicator. Table 3.9 has the details.

Table 3.9 Years of Education of Adults by Nationality Groups Ethnic Yi Bai Hani Miao Lisu Hui Han Group Household 5.44 5.8 5.96 5.43 5.65 5.29 6.28 Average Ranking 5 3 2 6 4 7 1 Source: Field Village Survey and Household Survey

47. Coincidently, higher proportion of better-off households has at least one member with special –off-farming skills. Minority households have the highest proportion of household members with no skills for special off-farming income generation. See Table 3.10 shows the details.

Table 3.10 Number of Members with Special Off-farming Skills in HH Social Group none 1 2 3 >3 Total HH No. Total HH 112 46 11 3 0 172 % 65% 27% 6% 2% 0% 100% Poor HH 44 7 1 1 0 53 % 83% 13% 2% 2% 0% 100% Middle HH 62 33 9 2 0 106 % 58% 31% 8% 2% 0% 100% Better-off HH 6 6 1 0 13 % 46% 46% 8% 0% 0% 100% Han HH 58 27 8 2 0 95 % 61% 28% 8% 2% 0% 100% Minority HH 54 19 3 1 0 77 % 70% 25% 4% 1% 0% 100% Source: Field Household Survey

48. To summarize, factors other than ethnicity may be determine household economic outcomes—for farming communities, factors such as land quality and size and the type of agriculture that land will support. For communities close to the urban area or along the main road, off-farming opportunities and skills are important factors. Table 3.11 summarizes the linkages between income and education and household landholding. It seems that the higher education, the higher household income. But for household income there seems no significant correlation with household landholding. The possible reason is that off-farming and migrant

15 labor income has a significant share and makes the agriculture income proportion not so dominant.

Table 3.11 Economic Differentials Amongst Minority Groups in the Project Area Household Gross Household Landholding Years of Education of Adults Ethnic Income (Irrigation and Dry Land) Group Household CNY per Household Ranking Ranking Ranking Average annum Average Yi 5.44 5 8,903 5 7.55 1 Bai 5.8 3 16,382 2 2.16 7 Hani 5.96 2 9,259 4 5.74 2 Miao 5.43 6 3,665 7 4.10 6 Lisu 5.65 4 6,558 6 5.01 4 Hui 5.29 7 14,450 3 4.87 5 Han 6.28 1 20,363 1 5.05 3 Source: Field Household Surveys

Figure 3.3 Household Gross Income by Nationality Groups Household Gross Income

25,000

20,000

15,000

10,000

5,000

0 Yi Bai Hani Miao Lisu Hui Han

Source: Household Survyes

Figure 3.4 Average Education Years of Household Adult Member

Years of Education of Adults

7.5

6.5

5.5

4.5

4 Yi Bai Hani Miao Lisu Hui Han

Figure 3.5 Household Income vs Education

household gross income 60000

50000

40000

30000

20000

10000

0 Observed

-10000 Linear 0 2 4 6 8 10 12 14

years of education of adults

Figure 3.6 Household Income vs Household Landholding household gross income 60000

50000

40000

30000

20000

10000

0 Observed

-10000 Linear 0 10 20 30

household landholding (irrigated and dry land)

Source: Field Household Survey

6. Economic Geography Categories

49. During project preparation, villages in the project area were divided into 3 “economic geography” categories, based on geographical location and the type of agriculture or other primary income earning activity. Table 3.13 indicates the linkage between the economic geography categories and ethnic groups.

Table 3.12: Basic Characteristics of Villages Found in the Project Area No. of Nationalities Average farmland per Main Villages capita (mu) Type Income Characteristics surveyed Paddy Dry Total Sources in the DPA Land land Type 1 10 Han, Bai, Hui, 1.58 0.5 1.08 off-farming Close to Kunming or Valley/Suburban business, county seats, convenient Village Fruit, and road and bus service local access, villagers skilled at migrant running restaurant, labour grocery, fruit planting, or skilled for migrant labour in near by cities. Type 2 9 Han, Bai, Yi 1.73 0.29 1.45 Cash crops, Mountainous with Mountainous with Livestock, abundant farmland or specialized fruit NTFP, forest land, convenient planting or livestock Migrant road access. Warm labour temperature areas with high value cash crops or fruits Type 3 11 Han 1.29 0.35 0.94 Potatoes, High mountain with cold Typical mountain – Lisu, Yi, Miao, Livestock weather, Inconvenient road agriculture Hani, and migrant and bus service access, labour less cash income source. Source: Field survey and consultant estimates

50. Minority villages in general have disadvantages to transport goods or travel to the county seat or provincial town that are far away; however, trips to the township are more regular.

D. Comparative Vulnerable Groups

51. In summary, Miao, Lisu and some Yi in the project area appear to be more vulnerable than other ethnic groups. The main constrains to their development include:

i) Geographically remote and difficult to access. All almost every administrative village have road access in the project area but from administrative village to sub-village, around 70% of Miao, Yi, or Yi and Lisu mixed villages have no road access. They have to carry their products to administrative village by animal or animal driven carriage.

ii) Language barrier: Most Miao and Yi in mountainous villages face language difficulties when they try to seek migrant job or seek non-farming income generation activities. This also caused technology extension backward due to most new technologies are disseminated in Han. In Miao and some Yi villages, the better off household are those who can speak both Han and their own languages engaging in non-farming business or migrant labor. These require more frequent communication with outside.

iii) Lower education level: In general, Miao, Lisu and Yi in general have lower education level than Han, Hani and Bai although the sample has certain degree of bias. Village leadership interview and key agency interview approve this point.

iv) Less information access due to remote and language barrier.

v) Dilemmas of economic development and culture protection: in one hand economic development is the common desire of the ethnic minority villagers and in another hand, economic development includes road development, internet, and tourism development brings pressure on culture and tradition protection. In recent years, there is a new trends to restore ethnic traditions through ethnic festivals, such as “Torch Festival” of Yi, Huashan festival of Miao, Daogan festival of Lisu become the vehicle events of Yi, Miao and Lisu music, dance and costume evolution.

E. Target Areas and EMs groups

52. In the project area, Miao, Lisu and Yi mainly located in the mountainous area of Wuding and Luquan county (the north part of the project area). Bai mainly located in Shanliang Township, suburb area of Kunming. Therefore the EMDP mainly focus in Wuding and Luquan, target Miao, Lisu and Yi.

IV. ISSUES

A. HIV/AIDS and STIs Issues

53. The first HIV/AIDS case in Yunnan Province was discovered in 1987. Intravenous drug users (IDU) along the Myanmar-Yunnan border are reported to have brought HIV/AIDS into Yunnan. A dramatic increase in cases occurred in 1989 when 146 cases were found in Ruili, which is the first HIV epidemic in China. After 1996, HIV has spread rapidly to the whole province. By the end of year 2005, 128 out of 129 counties of Yunnan reported cases of HIV infections. By September 2006, Yunnan has reported a cumulative total of 47,314 HIV positive cases, 3,586 AIDS cases, and 1,804 deaths from HIV/AIDS. It is estimated by experts that there are currently over 80,000 people living with HIV/AIDS in Yunnan.

54. The incidence of reported HIV infection in Yunnan Province varies according to geographical location. All 16 prefectures in Yunnan have reported HIV cases. Four prefectures, named Dehong, Honghe, Lincang and Wenshan, have a high prevalence of HIV/AIDS, were identified as high risk areas, the other 12 prefectures were identified as medium risk. There were no low risk prefectures. However, the proposed expressway is not found in a high HIV/AIDS epidemic area.

55. In comparison to the risks, the field survey reveals that less than 50% of surveyed households know prevention approaches for HIV/AIDS. Table 3.14 illustrates the details. The surveyed residents in the project area do not have adequate knowledge on HIV/AIDS, especially for ethnic minorities. Among the 172 surveyed household, 151 respondents (87.8%) reported they have heard of HIV/AIDS. Only half of respondents give right answers on HIV transmission and about one-third of answers on prevention are correct (see Table 4.1).

Table 4.1 knowledge on HIV/AIDS among surveyed household members Economic status Ethnic groups Indicator Total HH Non-poor poor Han Non-han % of HH having heard of AIDS 87.8 86.6 90.6 90.5 84.4 Average household knowledge level about HIV transmission (marked on a 0 to 4 continuum) 2.10 2.10 2.11 2.27 1.90 “0”=no knowledge, “4”=adequate knowledge Average household knowledge level about HIV prevention (marked on a 0 to 3 continuum) 1.13 1.13 1.11 1.20 1.04 “0”=no knowledge, “3”=adequate knowledge Source: Household Surveys (2006).

56. The proposed highway will facilitate the migration of seasonal workers and truck drivers which may aggravate HIV epidemic along the route. The construction activities associated with the proposed highway may also affect the spread of HIV/AIDS due to temporary assembling of a large number of construction workers. The interaction between newcomers and nearby community members might lead to the spread of HIV/AIDS.

57. Given the linkage between migration, mobility and HIV/AIDS, the ADB has funded a TA for HIV/AIDS prevention and control in the Baolong Highway project. Some valuable experience and lessons have been learned from the implementation of the ongoing TA as follows:

i. The Yunnan Government appreciates the assistance that ADB has provided along the Baolong road for HIV/AIDS prevention and control. It started a new approach and view to big infrastructure project construction as an event to initiate a movement to prevent

HIV/AIDS through providing training to the workers, sex workers, and community residents, involving community facilitators and construction company staff and government agencies in the project process. The project experiences will be a good case for the AIDS working committee office to advocate on government policy to enforce that every big infrastructure project establishes the similar scheme. The AIDS Working Committee office is looking forward to the results of the project to serve this purpose. Director Zhang of the office has stressed that every company and organization should be responsible when investing in big infrastructure. To deal with the HIV/AIDS issue now actions should move from research, to sharing responsibility, to action by all companies, organizations and everyone. ii. The data from the behavior surveillance survey reveals that it is necessary for HIV prevention measures to be integrated into construction projects and that the HIV prevention activity in the Baolong project has produced an encouraging effect. iii. The TA generated a lot of experience on which measures are more effective in terms of training, support measures etc. iv. The TA implementation has also left a group of community facilitators who are knowledgeable on HIV/AIDS prevention awareness building. v. Raised awareness not only for construction workers, but also for local communities, local government officials is needed. vi. Construction companies also acquired experience in HIV/AIDS prevention and some experienced staff who will work in other places later on. vii. Integrating HIV/AIDS into construction safety management was highlighted as an important finding to fit HIV/AIDS prevention into current construction management systems. One policy suggestion is to add HIV/AIDS and other transmission diseases prevention and control indicators into safety management schemes. But as pointed out by the Kunwu company leaders, this is not an issue which can be addressed in the project level alone. It should also be from higher levels, such as NDRC or SEPA. With no specific policy from a central level, current project management structures and processes do not have the required indicators and budget to do such prevention and monitoring. The ADB should have a policy research TA to address this issue with national government. Refer to Table 4.2.

Table 4.2 Possible Approaches to Adapt Experience from Baolong TA With TA Without TA • Provide HIV/AIDS and sexually transmitted • Provide simple HIV/AIDS and STIs prevention infections (STIs) prevention Training of Trainers to training to all workers and managers by untrained safety controllers by TA team safety controller • Provide HIV/AIDS and prevention training to all • Provide HIV/AIDS posters workers and managers by trained safety • HIV/AIDS and STIs counseling program by controller relevant Government Agencies • Provide HIV/AIDS posters • HIV/AIDS and STIs voluntary testing with no • HIV/AIDS and STIs training to service providers project M&E and villagers by TA team • HIV/AIDS and STIs counseling program by relevant Government Agencies • HIV/AIDS and STIs voluntary testing with project M&E • HIV/AIDS and STIs monitory and evaluation by CDC • Experience generation and reporting by TA team Source: Consultant’s discussion with Baolong 4142 TA consultant and Kunwu Company Leaders.

58. It can be seen from Table 4.2, without the TA, under the current project management scheme, means to address HIV/AIDS could be done in a very simple way which may not achieve the expected results. First, without the TA, the company can only provide simple training by untrained safety control men. Only if the central government budgetary policy establishes the item for HIV/AIDS and STI prevention as the safety control policy, the company (mainly state owned) could spent the money to do HIV/AIDS prevention. With no TA, the company leaders feel that it is difficult to promote and monitor voluntary counseling and testing. It also difficult for the safety control men and project managers to write reports on HIV/AIDS prevention and control.

59. In summary, there are two levels of work to address HIV/AIDS and STIs prevention and control. At the policy level, promoting central government to add indicators to safety management or environmental management scheme. At the project level, promoting the TA to all projects. HIV/AIDS prevention is a massive action not just a research and demonstration.

60. The major lessons learnt include more use of local expertise, coordination of CDC and the TA team; and the role and responsibility of safety control men in the company.

B. Gender aspects

61. Women play an important role in economic and agricultural activities as well as in the domestic sphere, accounting for 48.3 percent of the rural labor force in the Project Area. The Government has been actively promoting the social status of women; the legal framework requires women be given equal opportunities with men in respect of education, employment and political rights. The Women’s Federation at county and township level plays a significant role in protecting the rights and interests of women.

62. For most of the labor force, their education level was primary school and junior middle school. Illiteracy proportions are around 10% with no significant differences between male and female. However, there are some differences in primary and above level. Women in general have lower education levels. Details see Table 4.3.

Table 4.3 Education Level of Working Age by Gender Primary School Junior Middle School Senior Middle Beyond Senior Illiteracy % Education % Education % school % Middle School% Female 11 50 34 4 1 Male 10 42 38 7 3 Source: 10 villages’ Leadership Interview

63. Field household surveys and villages’ leadership interviews revealed that fewer women have off-farming income generation skills in general. But more women have off-farming income generation skill in those villages which are closer to urban areas. Female labors are mainly involved in agriculture, small business, retailer and transport service. Male labors tend to concentrate in areas such as carpenter, brick mason, small business, transport and foremen. Table 4.4 summarizes the off-farming income generation skills by gender.

Table 4.4 Off-farming Income Generation Skills by Gender Village Name Total Male % Female % Carpenter 122 122 100 0 0 Brickmason 791 781 99 10 1

Small Business 613 311 51 302 49 Retailer 104 35 34 69 66 Transport 142 129 91 13 9 Wholesaler 10 7 70 3 30 Foremen 74 72 97 2 3 Processing 9 9 100 0 0 Others* 39 39 100 0 0 Total 1904 1505 79 399 21 *Closer to urban area or the main road. Source: Field Village Leadership Interview in 15 villages

64. Table 4.5 provides a list of activities carried out by male or females, which indicated basic characteristics of job distribution among different genders. In general, male labors tend to take on heavy manual labor jobs and often work in the outside, and female labors tend to take on jobs requiring less manual labor and are often working inside. Within the villages surveyed women are less likely than men to undertake off-farm labour. However when men undertake migrant labor and are away for extended periods of time, this increases the burden on women back in the village; they continue to be responsible for household duties including care of the young and the infirm, and also work in the fields.

Table 4.5 Gender Labor Division Take Furniture care of Take repairing Take Diving Running Washing the old care of and house care Purchase Migrant and Processing Activities Cloth & kids animals Maintenance crops Harvest and Sell labor Business Retailer Transport Factory Male 2 2 5 9 5 5 5 7 6 4 8 9 Female 8 8 5 1 5 5 5 3 4 6 3 1 Note: The combined points between male and female for each item is 10. Source: Field Village Focus Group Discussion and Villages’ Leadership Interview in 8 villages with concentration of minority people.

65. Table 4.6 has summarized gender disaggregated data on decision making within households and the community. It is different by villages. In general, men decided more on production expenses while women decided more on daily expenses. For those villages close to the main road and county seats, such as Beiying, Zhaojiacun, Sancun, and Qinzhengshi, males and females tender to be more equal on decision making.

Table 4.6 Gender Disaggregated Data on Decision Making Decision Making M F Daily Expenses 4.7 5.3 Production Expenses 5.8 4.2 Visit Relatives 4.7 5.3 House construction or Maintenance 5.8 4.3 Borrow 6.6 3.4 Education of Children 5.2 4.8 Funds Raising 6.8 3.3 Collective Facility construction 6.1 3.9

Government Documents Informing Meeting 5.9 4.1 Coordinate neighbor 4.9 5.1 Note: The combined points between male and female for each item is 10. Source: Field Village Focus Group Discussion and Villages’ Leadership Interview in 8 villages with concentration of minority people.

66. Most of the benefits that accrue to men will equally apply to women; this applies to access to both the economic and social infrastructure. The exception is in terms of access to off-farm employment opportunities. It is clear that where rural women work off-farm they work closer to home. Where there are improved local roads that will improve this access, women in these villages will directly benefit. Because they travel farther a field in search of work, village men are more likely to benefit from the construction of the proposed expressway. Improved transport will result in better access to health care, particularly at times of childbirth when local transport options are unsatisfactory. It is unlikely that the project will have any adverse gender impacts.

67. For most women, to master special skill and knowledge, particularly those non-farm skills and market information will be an important condition for finding new jobs in urban areas. Therefore, women tend to rank skills training as a very high priority among various activities. The project office and relative government agencies should provide more opportunities for women to participate in the project related activities.

V. STAKEHOLDERS CONSULTATION

68. During preparation of the feasibility study, environmental assessment and resettlement planning consultations were conducted with governmental agencies, villagers, enterprises, local groups and other people likely to be affected by the project to discuss environmental concerns, land acquisition and resettlement issues, and economic development potentials. Around one third of the participants are ethnic minority representatives.

69. During the PPTA field assessments, a number of participatory assessment sessions, consultations, discussions and interviews were held with over 2180 people, including around one third of the minority population in the project area. These included staff of the Ethnic Affairs Bureau, individual villagers, poorest of the poor, entrepreneurs, traders and sellers at provincial, municipality, county, township and village levels. These assessments, surveys and discussions provided much of the quantitative and qualitative materials that were used to prepare this and other sections of the report. It has been used as the basis for identifying the potential project impacts and assessing their significance.

70. Surveys and discussions with different stakeholders revealed different levels of development needs and areas of support. Those engaged in local industry expressed the need for reduced transport costs with the hopes of seeing improvements in local road conditions to industrial areas. Construction material wholesalers and retailers were sensitive to the price of diesel and petrol, as they move larges volume of freight. Stakeholders engaged in producing and processing handicrafts and daily-use ethnic minority items were particularly concerned about protective freight transportation capability of the expressway as their products tended to be more fragile than the bulk goods normally carried. This group was particularly concerned to further diversify and commoditize tourist products and develop village-based tourism.

71. Further consultation plans were prepared in the project performance management system (PPMS).

A. Perceived Project Benefits

72. During the PRA exercise the participants in 32 groups of the 15 surveyed villages outlined their priorities with respect to development within the village. Table 5.1 outlines the first five priorities for women and men separately. Some of their needs are addressed by the project components and some appear in areas requiring attention in order to strengthen the positive impact of the project or mitigate the negative impact of the projects.

Table 5.1 Villagers’ Priorities for Development No. Groups with Priority No. Groups No. Groups with Priority (men) (women) putting this Priority Description priority into 1 2 3 4 5 1 2 3 4 5 categories 1-5 Proposed Kun Wu road project 0 0 0 0 3 0 0 0 0 11 4 Improved domestic water supply 1 3 0 1 1 4 0 0 0 1 11 Improved education quality 2 1 1 0 0 0 0 3 0 0 7 Reduce basic education fee 1 1 4 3 0 1 2 2 0 1 15 Reduce Tertiary education fee 0 2 2 2 0 0 1 1 1 2 11 Improved and more reliable irrigation 3 1 1 1 2 1 2 0 3 0 14 Better toilet facilities 0 0 1 0 0 0 0 0 1 0 2

Better access to credit 1 0 1 0 1 1 0 1 0 0 5 Improve road from your Township Center to your 6 3 2 2 0 5 2 1 3 0 24 community Improve drainage system 0 0 0 0 0 0 0 1 0 0 1 Better access to health care 0 1 1 3 2 2 3 3 2 3 20 Better access to agricultural technology extension 0 2 1 2 1 0 2 3 3 2 16 service Provide non-agricultural Technology Training 1 0 0 0 3 0 1 0 0 1 6 More opportunities for non-agricultural employment 0 0 0 0 0 0 1 1 1 2 5 locally Better Access to Market Information Service 0 1 1 0 0 1 1 0 1 2 7 A Market Place 0 0 0 0 2 1 0 0 0 0 3 Others* 2 0 0 0 0 0 0 1 0 0 3 * Note: (a) 1 group of male put electricity as No. 1 priority due to their village has no electricity supply. 1 group put reduce heath care costs as no. 1 priority. The group discussion also found that around 10% of household have experienced health problem and suffered from high treatment fee. I women group put a primary school in third priority as they consider the current school is far from their village. Source: PRA exercises in Focus Group Discussions

73. Improved roads from the Township Center to the community clearly rates highly as a priority. The second most important priorities are (a) better access to health services (b) better access to agricultural technology extension service (mainly cash crop plantation), (c) reduced basic education fee;(This refers the miscellaneous expenses related to schooling which cost the household although the government cancelled the tuition fee for 9 years basic education service); (d) reduced tertiary education costs, and (e) improved irrigation. Improved irrigation is critical in the expansion of cash crop plantations. Off-farming training, off-farming opportunities, market information and market place also rank into the first five priorities. These results indicate a concern for social access but clearly the most important are those priorities directly associated with income generation – both farm and off-farm. In fact, poor health has a direct impact on income-earning capacity – perhaps in this case health care is not so much a social concern but an economic one.

74. The proposed KunWu Expressway did not rate a strong response. This is not surprising given the focus on direct income generation priorities. However many of the income-related priorities the villagers outlined require upgraded roads and better access.

1. Agricultural Produce

75. Production of more agriculture products for sale in the market is one of the approaches the ethnic minorities benefit from the project.

76. The field survey revealed that more than 95% of HH have no potential to develop new farm land. This indicated that agriculture development in project area can not rely on the amount of farmland to increase. As can be seen from Table 5.2, households can produce more mainly if more land were irrigated, if they invested more in fertilizers or there is more convenient transport (local roads and expressway).

Table 5.2 Households Could Produce Greater Yields in the Condition of: More labor Invested Did not More land More available to more in undertake Conditions were convenienc Others work on fertilizers migrant irrigated e transport land etc. labor Total HH 98 38 77 12 56 16 % 57 22.1 44.8 7 32.6 9.3 % of Han HH 53.7 17.9 43.2 5.3 37.9 11.6 % of Minority 61.0 27.3 46.8 9.1 26.0 6.5 HH Source: Field survey. Total sample 172 HHs, includes 53 poverty HH, 77 minorities HH.

77. Therefore, for agriculture produce to take advantage of the project, enhancement measures should focus on irrigation, cheaper fertilizer and facilitation of local road access and transport service.

78. The main barriers hindering the ethnic minority villages and the ethnic minority households are the limited amounts of irrigated land, condition of village roads, access to market information and new technologies. The field focus group discussions on community development needs confirmed the existence of these barriers. The mitigation measures are suggested to address these issues in the RP and this EMDP. These enhancement measures will particularly benefit the poor due to that the poor’s income pattern relying on a higher proportion of agricultural products.

2. Migrant labor

79. Rural people undertaking migrant labor is a popular trend. Income from migrant workers plays a significant role in the household and local village economy. Indeed, it is those households without anyone capable of undertaking off-farm work that are disadvantaged; this is cited as one of the features of poor households. There is a shortage of land and therefore income from off-farming is crucial.

80. Approximately 100,000 people undertake long term (work outside over half year annually) migrant labor in the project area. The main destination of migrant labor include within county, beyond county within province, mainly in Kunming, and beyond province, mainly in Guangdong, and Fujian. All view the road will benefit them, making travel more convenient.

81. As indicated in Table 5.3 and Table 5.4, around 15% of the poor, 26% of moderate and 31% of better-off households, 38% of Han and 15% of the ethnic minority households have long term migrant labor as a source of income. In addition, 15% the poor and 12% of the minority households have short term migrant labor as a source of income.

Table 5.3 Long Term Migrant Labor by Social Groups Social Groups none 1 2 3 >3 Total Total HH 132 30 8 2 0 172 % 76.7% 17.4% 4.7% 1.2% 0.0% 100.0% Poor HH 45 7 1 0 0 53 % of poor HH 84.9% 13.2% 1.9% 0.0% 0.0% 100.0% Middle HH 78 22 6 0 0 106 % of Middle HH 73.6% 20.8% 5.7% 0.0% 0.0% 100.0%

Better-off HH 9 1 1 2 0 13 % of Better-off HH 69.2% 7.7% 7.7% 15.4% 0.0% 100.0% Han HH 68 19 7 1 0 95 % of Han HH 71.6% 20.0% 7.4% 1.1% 0.0% 100.0% Minority HH 64 11 1 1 0 77 % of Minority HH 83.1% 14.3% 1.3% 1.3% 0.0% 100.0% Source: Field survey. Sample size 172 households

Table 5.4 Short Term Migrant Labors in the Project Area Social Group none 1 2 3 >3 Total Total HH 148 19 5 0 0 172 % 86.0% 11.0% 2.9% 0.0% 0.0% 100.0% Poor HH 45 8 0 0 0 53 % 84.9% 15.1% 0.0% 0.0% 0.0% 100.0% Middle HH 91 10 5 0 0 106 % 86% 9% 5% 0% 0% 100% Better-off HH 12 1 0 0 0 13 % 92.3% 7.7% 0.0% 0.0% 0.0% 100.0% Non-poor 103 11 5 0 0 119 % 86.6% 9.2% 4.2% 0.0% 0.0% 100.0% Han HH 80 10 5 0 0 95 % 84.2% 10.5% 5.3% 0.0% 0.0% 100.0% Minority HH 68 9 0 0 0 77 % 88.3% 11.7% 0.0% 0.0% 0.0% 100.0% Source: Field survey. Sample size 172 households

82. As can been seen in Table 5.5, in Fumin county, around half and half of the long term migrant labor are within county and within province beyond county (mainly in Kunming), only a few went to outside of Yunnan province.

83. In contrast, Wuding have only around one fourth of long term migrant labor workers within Wuding. The majority went to outside of Wuding but within Yunnan Province. Around 11 percent went to other provinces. It seems Fumin has provided more off-farming opportunities to the rural labor. Fumin has more industry and tertiary development derived from Kunming. This trend implies that Wuding and Luquan County will soon follow the Fumin model due the project will shortening the travel time to the benefit of these counties.

Table 5.5 Long Term Migrant Labor of Selected Counties in the Project Area County/district Total Within County Within Province Beyond Beyond County Province Fumin 14310 7073 6691 546 % 100.0% 49.4% 46.8% 3.8% Wuding 17566 4330 11338 1898 % 100.0% 24.7% 64.5% 10.8% Source: Fumin and Wuding Rural Economic Statistical Station

84. The field household interview and village leadership interview identified that the major barrier for the poor and ethnic minorities seeking outside job opportunities include special skills, basic knowledge to live in urban city, language barriers and social networks. For helping the poor and ethnic minority household to get migrant job, the project counties’ Poverty Alleviation Offices, labor bureau and women’s federation are organizing off-farming skill training and general knowledge of living in urban area. These activities will reinforce the project to benefit the poor.

3. Promoting Off-farming Business

85. One of the project impacts is to promote local economic boom through improved roads. As the project area joins with Kunming, local industrialization and urbanization are expected. Off-farming business is an important opportunity for ethnic minorities.

86. From the survey data a pattern has been identified. Table 5.6 shows that the wealthiest households (the smallest group, around 5-15%) in a village are those with a business in the village or within the township (such as construction or small-scale trade).

Table 5.6 Households with Own off-farming Local Business Social Groups Agriculture Own Off-farming Local Business Total HH 108 13 % 62.8% 7.6% % of Poor HH 75.5% 3.8% % of Middle HH 58.5% 8.5% % of Better HH 46.2% 15.4% % of Han HH 55.8% 8.4% % of Minority HH 71.4% 6.5% Source: Field survey. Sample size 172 households

87. A higher proportion of better-off households have at least one member with special off- farming skills. See Table 5.7.

Table 5.7 Number of Members with Special Off-farming Skills in HH Social Group none 1 2 3 >3 Total HH No. Total HH 112 46 11 3 0 172 % 65% 27% 6% 2% 0% 100% Poor HH 44 7 1 1 0 53 % 83% 13% 2% 2% 0% 100% Middle HH 62 33 9 2 0 106 % 58% 31% 8% 2% 0% 100% Better-off HH 6 6 1 0 13 % 46% 46% 8% 0% 0% 100% Han HH 58 27 8 2 0 95 % 61% 28% 8% 2% 0% 100% Minority HH 54 19 3 1 0 77 % 70% 25% 4% 1% 0% 100% Source: Field Household Survey

88. The influencing factors on off-farming business in the project area are varied. For the ethnic minorities, the main barriers for starting off-farming business include working capital, experience, market information, and social networks. During the household survey, a lot of farmers raised the issue of off-farming training, market information service and working capitals. A micro-credit program for the poor (but not very poor) and middle households to start small transport service business were suggested. The poverty alleviation offices also have a micro- credit program to help the poor to start agro-processing businesses. Training for off-farming skills is required.

4. Benefits for Social Services

89. Road improvements will lead to lower transport costs and improved access for the ethnic minorities to markets and social services. Both Han and minorities will benefit from the lower costs of using their owned motorized vehicles and travel time will be reduced. These benefits will not only enable economic exchange but will improve access to schools, medical facilities, and other social and civil services. Moreover, the ability of the public sector to provide these services cost efficiently will be enhanced by improved road access.

VI. ETHNIC MINORITY ACTION PLAN

A. Project Benefit and Enhancement Measures

1. Project Benefits

90. As result of the project, ethnic minorities can take advantage of road improvements to increase agriculture products, seek migrant labor opportunities, promote tourism development and have better access to health care, education, technology extension, credit service and market. Some of these benefits have already recognized by the local people.

91. Village leadership interviews and male and female focus group discussions were conducted respectively during field survey. Out of the 15 surveyed villages, 12 are ethnic minority villages or mixed villages.

92. During discussions, people identified the possible positive impacts (benefits). Some points are viewed from their own interests; some points are viewed from the whole society. Table 6.1 presents the perceptions of local people, regarding the socio-economic impacts of the proposed expressway construction.

Table 6.1 Potential Benefits Identified by Villagers in the Project Area Village Type/ Main Positive Impact of the Proposed Expressway Sample Village Villagers of Valley/ z Convenience to product transport to Kunming or further places Suburban z Faster transportation of fruit and other fresh product to market village z More urban people come to family restaurant along the road networks near Fumin and even further to Wuding. Villagers of z More convenience to transport fresh fruit and other crops to market Mountainous with z More information seeking migrant job specialized fruit z More job opportunity in the close valley area planting or livestock z Hopefully more investors come to mountainous area to advent new type of farming, such as organic farming Villagers of Typical z More convenience to move to further places mountainous z Can use compensation money to develop other business, such as plan more fruit trees, raising more pigs and agriculture villages chicken, running small buying and selling business or buy vehicles. z More information z Easier to seek jobs further

93. As the economic impact assessment pointed out, the project will directly benefit the road users in general and includes both rural and urban residents, women and men, Han and ethnic minorities. The expressway will reduce hours of travel time between Kunming and Wuding from approximately two hours to less than one hour. A better road network will promote economic growth in the project area and integrate poor, isolated regions with the centers of economic growth. Once linked to the major road network, the improved local roads will facilitate the spread of the expressway’s benefits to the rural economy. Improved transportation will increase income opportunities from cash crop farming or seasonal work involving migration, increase contact with urban centers and make trips to markets.

94. In addition to the economic benefits, there are various non-economic impacts that will result from this road project including the following:

i. Improved access of villagers to social services ii. Improved access to production services, i.e. technical personnel, local officials

iii. Social impacts from increased employment (e.g. greater time available for households tasks and leisure) iv. Increased awareness and interactions with the outside world v. Improved safety, environment and ease of transportation along the existing G108 as diversion to the new expressway results in a reduction of traffic vi. Local level urbanization partially as a result of local road upgrading. This process would not only generate new employment opportunities, but also create better social services to neighborhood areas. vii. Improved access could encourage teachers and health care workers to work in villages or townships, particularly those villages located close interchanges. viii. Shorter travel time for emergency vehicles, such as ambulances.

2. Enhancement Measures

95. For enhancing the ethnic minorities benefit from project, 3 measures were planned.

i) Improve local road network through construction/upgrading local road and link road. Total 194 Km local road and link road were included in the project component with total budget amounts 116million. County and township governments, communities along the road, household in 15 townships will benefit from these improvements. Out of the total beneficiaries, 40% are minorities and 35% are rural poor. ii) Improvement of transport services involves 4 township transport center with project budget amount 1.8million. In addition, the project also suggested transport policy reform to improve services to benefit the local people.The project component targeted 180,000 of population in 11 townships with 43% of minorities and 33% of poverty.

96. Given priority of construction work and materials to local poor, women and minorities. It is suggested that the project target 70% local labor for unskilled work, 50% women for unskilled labor in landscaping, 40% minority for unskilled work. The project should use local construction materials, e.g. rock, gravel, clay, cement as much as possible. Seedlings for soil control will be exclusively from local nurseries. It is estimated that about 23,000 people include 9000 minorities and 10,000 women would benefit from the project construction.

B. Project Impact and Mitigation Measures

97. However, there are some risks for ethnic minority groups including resettlement along the proposed expressway, construction related disturbance, communicable diseases, and difficulties to gain construction employment due to language barrier, low education or lack of skills. Also, some villages may not benefit due to being located in remote mountainous areas. Table 6.2 summarized the potential negative impacts identified by villagers.

Table 6.2 Potential Impacts Identified by Villagers in the Project Area Village Type/ Main Negative Impact of the Proposed Expressway Sample Village Villagers of Valley/ z Have very limited farmland, if occupied to much land, may not be able to generate livelihood rely on farmland Suburban z The Elderly could not be migrant labor, their livelihood may face difficulties, they are vulnerable group. Same as village others becoming old. z Worry about the livelihood if the compensation used up z Damage other road and facilities during construction Villagers of z Separate the farmland and house by the expressway, inconvenient Mountainous with z Damage original road and other facilities specialized fruit z Affect the fruit selling along road

Village Type/ Main Negative Impact of the Proposed Expressway Sample Village planting or livestock Villagers of Typical z Separate the farmland and house by the expressway mountainous z Isolated road, pass-by but can not access agriculture villages Source: Consultants summarized based on field surveys and male and female focus group discussions.

98. In general, the negative impacts perceived by the local people mainly related to the villages along the alignment. The main negative impacts are land acquisition, house demolish, separation of farmland, irrigation and other facilities damages etc. For the villages away from the alignment, no significant negative impacts were identified. The issue becomes how these villagers can fairly take advantage of the improvements in transport resulting by the project.

99. The minorities benefit from the project through four main approaches: produce more agricultural products for sale, travel for migrant jobs, running small off-farming business, and travel for social and economic services.

100. Mean while, there are also a lot of local conditions or barriers that may potentially affect the ethnic minorities and how they may benefit from the project through these four approaches. This includes local community facilities, such as village road, irrigation system, off-farming skills, market information of product and off-farming/non-farming job, working capitals, and technical service etc.

101. Road safety was noted as a serious concern of local residents with concern about an increase in road accidents due to increased traffic and vehicle speeds. Concern was expressed by both women and men for their children traveling to school along the roads. Roadside improvements will need to include proper signage for speed limits and passing pedestrian areas.

1. Land Acquisition and House Demolition

102. The biggest social risk is the land acquisition and house demolish caused by the project. The project will affect approximately 18184 people in 21 villages of 8 townships in Wuhua, Fumin and Wuding counties/districts. According to the field survey, a total 5996.23mu of land to be permanently acquired, of which 32.84% is paddy, 26.77% is dry land, 2.25% is vegetable plot, 3.05% is orchard, 8.45% is forestland, 20.91% is shrubbery land, 2.16% is barren and 3.57% is house plot. There are 183,444.65 square meters of buildings that will be demolished, including resident/temporary house, storehouse, factory field, workshop and shop, etc. There are 1,319 persons affected by house demolition and 1,524 persons affected by land loss. About 18.01% of the affected people are ethnic minorities and about 11.19% are poor or vulnerable. The selection of local roads for upgrading includes roads that only require resurfacing within the existing alignment, so no RPs are expected to be necessary. The estimated cost of resettlement for the expressway is CNY337.60 million, but this could change during preliminary design and detailed measurement survey, especially in the urban section of Kunming.

2. HIV/AIDS and other transmissible Disease

103. After 1996, HIV has spread rapidly to the whole province. By the end of year 2005, 128 out of 129 counties of Yunnan reported cases of HIV infection. By September 2006, Yunnan has reported a cumulative total of 47,314 HIV positive cases, 3,586 AIDS cases, and 1,804 deaths from HIV/AIDS. It is estimated by experts that there are currently over 80,000 people living with HIV/AIDS in Yunnan. Yunnan became one of the provinces most affected by HIV/AIDS.

104. Based on the experience generated from Baolong Road TA, after discussions with the AIDS working committee office and the Kunwu company leaders, a HIV/AIDS and other transmissible disease control action was suggested as the follows:

i. Role of three major parties IA’s safety control system: provide awareness training to all workers of the project constriction team, provide posters, pamphlet to all workers, facilitate voluntary testing, document all relevant events’ time, participants and results. But the safety controller themselves need Training of Trainers on HIV/AIDs and STIs prevention. This could be provided by CDC. CDC: Ensure training and materials be available in ethnic minority Language; provide TOT to safety controllers; provide counseling program and voluntary testing. Provide training on villagers along the road; conduct M&E. External consultant: provide technical support to CDC and Safety controller if needed, conduct case study on HIV/AIDS and STIs control at project level with focus on (i) practical procedures and measures in different situation; (ii) minimum costs required in different project condition; (iii) macro level policy requirements for best practice on HIV/AIDS and STIs control; and (iv) potentials and conditions of experience dissemination. The case study could be served as policy advocacy documents by ADB and Yunnan HIV/AIDS working committee office at provincial and national level. ii Budget: budget source should come from two sources, namely EA and ADB. Both parties have responsibility to cleaning up the project from this social risk. Therefore the consultants suggest ADB allocate TA for project level HIV/AIDS prevention. iii. Budget Allocation: Budget allocation arrangement could be three parts: 1/3 goes to IA’s safety control system, 1/3 goes to CDC, and the rest 1/3 goes to external TA team. This arrangement is fully aware that (i) IA is an implementing agency, they can only follow the project budget item. It will be difficult for IA’s safety system to undertake HIV/AIDS and STIs control if no additional budget allocation to them because the usual budget for safety control are very limited. (ii) CDC has normal M&E budget for HIV/AIDS control but the project requires more frequent monitoring, so additional budget is needed.

3. Human and drug trafficking

105. It is not expected the project will have a notable impact on human trafficking although since the 1980s, Yunnan has been severely affected by trafficking in women and children, and over 1,000 women and children have been trafficked to other provinces and to neighboring countries annually in recent years. For most people in the project area, they do not view this as a serious issue. Awareness raising activities should be conducted.

106. There were more than 130,000 accumulated drug users from 1984-2005. Currently there are over 68,000 registered drug users. Drug trafficking is an issue which accompanies HIV/AIDS. Sharing a border with several countries, Yunnan has become a frontier of drug trafficking for a long time. The Yunnan government with the support of the national government has initiated a series of Anti-drug trafficking programs.

4. Community Disturbance during project construction

107. Some disturbances might occur during project implementation that will upset community life. For example, damaged to irrigation and drainage systems and pollution of surface drinking water caused by construction. In addition, villagers stated that construction teams often left

damage and debris behind and that night time construction creates excessive noise for people living close to construction sites. Mitigation measures are included in the EMP.

C. Complementary Poverty Reduction Measures

108. All existing government poverty reduction program will be on going throughout the project period. Linking the poverty reduction program to the road improvement can maximize the project benefits to poor. Agreement needs to be in place before the project commences; in particular, the following programs will complement the project activities.

i) Integrated Village Development Plan for Poverty Villages Program: Although the local PADO can not provide details which sub-village will be targeted, it is estimate that around 2-3 sub villages in the 112 poverty villages in the project area will be targeted. Budget for each village will be CNY200,000.

ii) Ethnic Minority Development Funds and Ethnic Minority Development Opportunity Funds Project: Inclusion of remote ethnic minority villages to benefit from the road improvement. Special support to minority villages includes cultural protection, sub-village road and other facilities. These two funds mainly targeted minority villages exclusively each year, there are around 1-2 millions in Wuding, Luquan and Fumin county. There is a need to coordinate to Ethnic minority bureau to adjust the time table to best use the opportunities bring by project road.

iii) Integrated Village Development Plan and Village & Sub-village Road Development for poverty villages: These projects provide good opportunity to link road improvement with government poverty alleviation programs. Both projects target poor and remote ethnic minority villages as priority. The former is implementing by local communication bureau and the later is implementing by local PADO. Coordinating these projects will facilitation inclusion of remote minority and poverty villages to benefit from the proposed project.

iv) Micro-credit program provide loan to the poor-medium ethnic minority household and women: In Wuding, Luquan and Fumin county, each year there are around 12-15 million micro-credit founds targeting poor, minority and women. The project will continue through out the project period.

v) Tourism promotion focus on minority cultural protection and cultural & ecotourism development: Minority communities in Wuding, Luquan and Fumin have tourism development potential. All the three counties have developed their tourism development in its 11th five year plan, which will be implemented by tourism sector.

vi) Provide technical training to ethnic groups focus on providing organic farming to ethnic groups who have potential to produce organic products to niche Kunming and other cities market demands; providing management: how to develop simple business plan, and conduct simple cost-benefit analysis; provide training and advise to minority group about how to build up and manage economic cooperative organizations to access information, access to market effectively, and enhance local villagers include ethnic groups’ bargaining power. The local Poverty Alleviation and Development Office, Agriculture Bureau, Forest Bureau, Animal Husbandry Bureau and Bureau of Industry & Commercial do have such training program on going.

vii) Promote non-faring employment through providing skill training to ethnic groups to help them find non-farming jobs, focus on young generation specifically; Coordinating job information for migration labors; providing education to migration labors on labor contract and right issues. Local PADO and Labor bureau has project on going.

viii) In addition, Promotion of Migrant Labor running by Poverty Alleviation and Development Office organized in each county provides support to the poor to be migrant labor. PADO responsible to coordinate the employers, provide basic trainings and consultations to the poor who are interested in migrant labor. The “Food for Work” and “Micro-Credit Programs for Poverty Reduction" targeted Wuding and Luquan County in the PA. This project can be coordinated into village road development in the project area.

D. Consultation and Disclosure

109. At various stages, affected people have been consulted about the likely impacts of the Project. The stakeholders consulted include (i) heads of households the will be affected, (ii) village heads and villagers’ representatives, (iii) local government agencies and departments, and (iv) women and vulnerable groups. YPCD organized public consultation meetings in the affected villages. On 25 and 26 April 2007, workshops were held in Wuding and Luquan counties to discuss the draft EMDP, which were disclosed to the targeted townships and villages. More intensive consultation and participation will take place during implementation. E. Implementation Arrangements and Funding

110. The YPCD will be responsible to indorse the EMDP. The Project Expressway Company (PEC) and YPCD will be responsible for implementing the EMDP; the Yunnan Ethnic Affairs Commission and its county level offices will provide support to coordinate, advise and monitor implementation progress. Implementation arrangements for the EMDP have been integrated into the overall Project management, or are part of ongoing government programs. Other key agencies for implementation include the Center for Disease Control, Poverty Alleviation Offices, County Communications Bureaus, Labor Bureaus, Tourism Bureaus and All China Women’s Federation (ACWF).

111. The actions to be implemented are either included as (i) part of the Project budget (see Table 6.5, Section I for enhancement measures and Section II for mitigation measures) or (ii) part of local government development budgets (see Table 21, Section III for complementary poverty reduction measures). Local government agencies will also collaborate with actions taken by YPCD and PEC; it such cases, local government staffing and related costs are covered by the local government administrative budgets. One exception is the monitoring of transmissible disease control because the Project impacts may strain the local government budgets; in this case, contractors will bear the cost awareness and prevention while the Kunming CDC will bear the cost of baseline surveys and compliance monitoring. YPCD will be supported with some ADB TA grant funds for HIV/AIDS and transport projects. Also, YPCD and PEC will be responsible for the costs of internal monitoring and reported (part of the PEC project management cost) and the cost of engaging an external monitor.

112. Regarding staffing, YPCD will each assign a senior officer to be responsible for EMDP implementation and coordination with local government. PEC will appoint a full-time staff member(s) responsible for (i) implementation of the EMDP and (ii) coordination of socioeconomic monitoring, which is closely related to the EMDP. The Yunnan Ethnic Affairs

Commission will provide oversight and will review the external monitoring and evaluation reports and provide recommendations. County and township governments will assign staff to be responsible for implementation and coordination. The Project Leading Group will have a member responsible for EMDP implementation.

F. EMDP Monitoring and Evaluation

113. Monitoring and evaluation (M&E) of the EMDP is required by ADB to ensure the plan is implemented properly and meets the objectives specified. The objectives of the M&E include:

i. Assess the project impacts on the livelihood and wellbeing of the minority groups, ii. Identify the areas for adjustment and changes to enhance project benefits on minorities, and iii. Summarize the lessons and experiences on enhancing minority development, which can be replicated in other areas.

1. Implementation Agencies

114. YPCD and PEC will be responsible for internal supervision and monitoring, with assistance from local government agencies; a summary of progress, when applicable, will be included in the Quarterly Progress Reports submitted to ADB. In addition, independent monitor(s) will be contracted by YPCD to carry out the external monitoring and evaluation, and prepare annual monitoring reports for submission to YPCD and ADB until the completion of the Project. Reports will assess each activity and provide recommendations for follow-up by the PEC. The external monitoring reports will also be provided to YEAC and Health Department, so they can review, provide guidance and coordinate required follow-up actions.

2. Monitoring and Reporting

115. The monitoring will focus on the implementation of the actions in Table 6.5 and results (note, indicators are also included in Table 6.5). An independent domestic agency with suitable qualifications will be contracted by PEC to conduct external monitoring and evaluation of the EMPD over the four year project construction period. Annual monitoring reports summarizing the implementation progress, key findings and recommendations will be submitted to the ADB, YPCD and YEAC. The methodology will include both quantitative approaches and qualitative approaches. A sample household survey will be conducted mainly to collect quantitative data and a participatory rural appraisal (PRA) will be conducted to collect qualitative data to understand minority needs, concerns, and problems. The Terms of References for the external monitoring and evaluation of EMDP implementation are included in Annex 1. The cost of monitoring is tentatively estimated to be CNY 280,000 (to be reviewed during appraisal).

Table 6.3 Summary of EMDP 2007–2010 Agencies Funding Needs & Risks and Proposed Actions Target Group(s) Timing Monitoring Indicators Involved Source(CNY) A. PROJECT BENEFITS AND ENHANCEMENT MEASURES • Section and length of local County and township Local roads improved governments, Communication a) 116 million project 1. Improve Local Road Network • Passenger fares and freight communities along the Bureau (LCB), budget a. 10 sections, total 194km local road upgrading 2007-2010 rates road. HH in 15 townships, Project b) 5.1 billion project b. Completion of expressway to Kunming • Frequency of travel 40% are minorities and Expressway budget 31% rural poor Company (PEC) • % of expenditures spent on transport • No. of improved township bus 2. Improve Transport Service Facilities Rural HH in 11 townships, 1.8 million project station LCB and local 2009- a. Build 4 township passenger station 43.2% minority population budget • No. of service provider government (LG 2010 b. Road transport policy reform and 32.7% poor b) 0 • No. of user/passenger • No. of new bus routes 3. Local employment for construction work and • Number of local people (male other services and female, Minority and Han, • Priority to local labor in general. Targets: poor and non-poor) 70% local labor for unskilled work. About 23,000 people disaggregated data) EA and 2007– Included in Project 50% women for unskilled labor in landscaping include 9000 minorities • Source of construction Contractors 2010 cost. 40% minority for unskilled work and 10,000 women. materials (interview to • Use of local construction materials, e.g. rock, contractors) gravel, clay, cement • Source of seedlings (interview • Seedlings exclusively from local nurseries to contractors) B. MITIGATION MEASURES TO ADDRESS SOCIAL RISKS 4. Control of HIV/AIDS and sexually transmitted • Number of posters infections (STIs) • No. of posters in EM language • Provide Training of Trainers (TOT) to safety or drawing Over 10,000 workers, Executing agency controllers by CDC 0.2 million RMB in • Number of training program mostly rural poor each (EA) contractors • Provide training to all workers and managers by 2008– project budget and and trainees month and County CDC trained safety controller 2010 around US$0.1-0.2 Over 5,000 service and TA • Number of tests Provide training to service providers and villagers million by ADB TA • providers implementer by CDC

• HIV/AIDS and STIs counseling program and 37 voluntary testing by health agencies

38 Agencies Funding Needs & Risks and Proposed Actions Target Group(s) Timing Monitoring Indicators Involved Source(CNY) • Conduct participatory M&E by CDC • Provide posters in minority language or drawing which help minority group can understand easily • Case study to generate lessons and experience on project level HIV/AIDS and STIs control and reporting by external TA group 5. Protection of communities (include ethnic minorities and Han) from construction • Number and resolution of Around 18000 persons disturbances and ensure safe construction complaints close to the alignment in EA, and 2008– Included in project practices • Length of irrigation and the 21 villages along the contractors 2010 budget (refer to EMP) • Prohibiting night-time construction and adherence drainage canals, percentage corridor to proposed noise standards of recover ratio • Reconstruction of irrigation and drainage systems 6. Special support to resettlement affected EA, local labor • Full compensation and social 2007- Included in project • Provide pension insurance (for old) and social All affected peoples security 2010 and Refer to RP budget (refer to RP) insurance (minimum living standard) bureau(LSSB), after • Special funds for vulnerable group LG 7. Income recovery for affected people (refer to EA, local LSSB, Project and local • Number and kind of training, 2007– RP) Resettlement affected HH, PADO, Ethnic government and number of participants 2010 and • Training on non-farming employment skills at least 50% female Minority Affairs (refer to resettlement • Number of training and after • Training of women on employment skills Bureau (EMAB) plan) number of participants C. LOCAL GOVERNMENT COMPLEMENTARY POVERTY REDUCTION MEASURES 8. Inclusion of remote ethnic minority villages to • Length of road improvement / Miao and Lisu villages in benefit from the road improvement 3 million, construction in minority village the mountainous area of YPCD, PADO and • Special support to minority villages include 2007-2010 Ethnic minority and sub village Wuding and Luquan EMAB cultural protection, sub-village road and other development funds, • Other facilities improvement in County facilities minority sub-villages Ethnic Minority people in 2007- 2010 • Agreements between YCD, 9. Linking Road Improvements with Government poverty villages PADO and other agencies to Poverty Alleviation Programs Agreements with relevant maximize project impacts YCD and PADO Agreements 11th 5–Year Plan • Village and sub-village road development agencies to harmonize should be • Number of cases/examples of • Integrated Village Development Plan road improvements with in place linked programs poverty programs prior to • YDC Report on

Agencies Funding Needs & Risks and Proposed Actions Target Group(s) Timing Monitoring Indicators Involved Source(CNY) Selection of village roads commence Cooperation/Coordination and linked to poverty reduction ment of Impact interventions civil works • PADO evaluation reports Equipment and training for • PPMS constructing and • Participatory community maintaining village roads meetings Markets established at bus stations • Amount of credit disbursed, 10. Micro-credit Minority HH and poor PADO, WF, RCC On-going government number of minority borrowers, • Provide loan to the poor-medium ethnic minority women 2007– and township project with priority to and type of activities (male household Coordinate to poverty 2010 government minorities and women and female disaggregated • Provide loan to poor women reduction plan data) 11. Tourism promotion Minority villages has • Minority festival celebration • Minority cultural protection and cultural& tourism development Local government and re-storage 2008– Government and ecotourism development. potential and its tourism • Number of advertisements 2010 tourism sector • Advertising of tourism sites on expressway sign Tourists and tourism bureaus • Number of tourists (local and boards just prior to highway opening. agents. outside tourists) 12. Provide Technical training and Management • No. of types organic products Training • Quantity of organic products Local poverty • Provide organic farming to ethnic groups who alleviation office • Total Value of organic have potential to produce organic products to and Agricultural products niche Kunming and other cities market demands. Animal On-going government • No. of economic cooperative • Provide management: how to develop simple 2008- Husbandry, project with organizations business plan, and conduct simple cost-benefit Minority villages and HH 2010 and Forestry Bureau, coordination of training • Profit increase or cost analysis after and Bureau of content adjustment decrease by participation of • Provide training and advise to minority group Industry and economic cooperative about how to build up and manage economic Commercial organizations. cooperative organizations to access information, Management access to market effectively, and enhance local villagers include ethnic groups’ bargaining power 13. Promote non-farming employment Local Poverty • No. of migrant labors Minority Household and 2007- On-going government • Promote skill training to ethnic groups to help Alleviation Offices increased

individuals 2010 project 39 them find non-farming jobs, focus on young and Bureau of • No. of employers coordinated

40 Agencies Funding Needs & Risks and Proposed Actions Target Group(s) Timing Monitoring Indicators Involved Source(CNY) generation specifically Labor • No. of migrant labors trained • Coordinate job information for migration labors • Provide education to migration labors on labor contract and right issues Source: Yunnan Communication Department, Yunnan Poverty Alleviation Office, County level of bureaus/office of communication, poverty alleviation, ethnic minority affairs and women’s federation.

ANNEX 1

TERMS OF REFERENCE FOR THE ETHNIC MINORITIES DEVELOPMENT PLAN EXTERNAL MONITOR

Terms of Reference

1. The ethnic minorities development plan (EMDP) for the Central Yunnan Road Development Project consolidates all specific actions that target ethnic minorities from different documents so that it forms a stand-alone document to ensure compliance with ADB’s Policy on Indigenous Peoples. Measures to enhance the economic conditions of ethnic minorities have either been integrated into project design or specified separately in the EMDP. The EMDP includes actions for ethnic minorities in Wuding, Luquan and Fumin counties; these are the main projects areas with significantly affected ethnic minorities.

2. The objectives of the external monitor are to: (i) ensure the action plan of EMDP is implemented according to PRC regulations and Asian Development Bank (ADB)’s Indigenous Peoples Policy; (ii) assess the impacts of the action plan of EMDP on ethnic minority welfare; (iii) assess the overall efficiency, effectiveness of the EMDP; (iv) suggest necessary adjustments to the actions in the EMDP; and (iv) deduce lessons for future expressway projects in Yunnan and/or local governments’ efforts on minority development.

3. The EMDP includes three kinds of action: (i) project benefits and enhancement measures, (ii) mitigation measures to address social risks, and (iii) complementary poverty reduction measures. See Table 6.5 for the summary EMDP action plan.

Methodology and Content

4. The general methodology will involve secondary data collection, key informants interview household survey, and participatory rapid appraisal techniques (PRA) repeated on a yearly basis before, during, and after the EMDP, associated with the project, is implemented.

5. The secondary data will cover statistic data, annual implementation plans and review reports related to EMDP done by various agencies involved. The team will also interview responsible persons in Yunnan Provincial Communications Department (YPCD), the Project Expressway Company (PEC), Ethnic Affairs Commission, Poverty Alleviation Office, Labor Bureau, Tourism Bureau, Forestry Bureau, Agriculture Bureau, Health Bureau, All China’s Women Federation, and other related institutions at the prefecture and county level. Local nongovernmental organizations (NGOs) will also be interviewed to learn the achievements, experience and recommendations.

6. Household survey will use the household questionnaire for the poverty and social assessment. This survey will selectively target certain number of ethnic minority households over the whole monitoring period and constantly record the household activities, including Yi, Lisu, Miao, Bai, Hani and Hui. The selection of villages and households will be based on consultation of with the local authorities and villagers themselves. The selection of villages and households will also cover the different components of the project: construction of expressway, rural roads, and bus stations. This could enable analysts to have systematic data to assess the project impacts.

7. Participatory assessments should cover a wide range of issues that arise during the implementation process. The monitoring team will conduct the participatory assessment once every year in relevant locations according to needs. The target populations include government agencies and their staff, transport providers, market managers, rural people especially rural women, and members of ethnic minority communities. The outcome of participatory assessments would be of critical importance in future planning.

8. The tasks of external monitoring and evaluation will include:

(i) Regular monitoring of social and economic activities of ethnic minority households; (ii) Conducting participatory assessments in villages; (iii) Collection of secondary data of provincial, county and township levels; (iv) Monitoring the impact of tourism development on sensitive minority cultures; (v) Assessing the induced social impacts of the Project on ethnic minorities in the project areas; (vi) Annual investigation and reporting of monitoring and evaluation results to YPCD, PEC, YEAC and ADB; and (vii) Suggestions and feedback to PEC and local governments for improving the implementation or revising the EMDP.

9. The baseline survey will focus mainly on household survey and second data collection. The survey team will select sample villages and householders with consultation of YPCD, PEC, and local authorities. The sample villages and householders will be surveyed in future surveys so that monitoring and evaluation team can analyze the EMDP impacts properly. The secondary data will include statistic and each bureau’s plan for activities of EMDP.

10. The subsequent survey will collect second data, key information, and household survey and PRA survey. The survey will focus on effects of each EMDP activity and impacts on minority livelihoods. The team will also learn lessons and experiences regarding EMDP implementation. The recommendations will be drawn from the survey, interviews and field observations.

11. The final evaluation will also collect secondary data, key information, and household survey and PRA survey. The survey will focus on overall impact of EMDP on minority livelihoods, capacity of implementing organizations engaged, and policy of ethnic minority. The team will also summarize the key lessons learned and experiences.

Sampling

12. It is suggested to select 10 villages as sample villages, covering different ethnic minorities and different project components in project area. The types of ethnic minorities will include: Yi, Lisu, Miao, Bai, Hani and Hui. The project components include: construction of expressway, rural roads and bus stations.

13. Around 20 households should be sampled in each selected village. The sample will be chosen according to their economic status at the beginning of the project. In general, two (6) households will be in good conditions, 6 in average condition and 8 in poor condition. Of the 20 households, about 4 should be vulnerable households, where applicable. At least 6 households should represent the smallest minority group2 in the village. The criteria used to

2 Other than Han.

43 determine “good” “average” and “poor”, and the “vulnerable households” should be clearly stated in the baseline report. In order to improve comparability, households selected for the baseline survey will be interviewed in all subsequent annual surveys.

Survey Timing

14. The schedule has been designed to provide, as required, six investigations throughout the implementation of the project (one baseline survey, four yearly evaluation surveys, and a final evaluation survey). The household surveys would be repeated every year starting with the baseline survey implemented just before construction. All selected villages would be visited in February or March annually because this time the statistic data are available and household data are easily collected.

15. The baseline survey will establish the pre-project socio-economic conditions of villages as well county statistic data against which subsequent changes can be evaluated.

16. Yearly evaluation surveys will provide a quantification of the changes in the social and economic conditions of ethnic minorities together with a more qualitative assessment of these changes and the reasons for them.

17. Yearly evaluation survey will also provide interim assessments of the changes taking place in the sample villages. Village level indicators will be collected but the emphasis will be on qualitative information.

18. The final evaluation survey should take place approximately one year after the construction is completed. Its main objective is to assess whether the objectives of the EMDP were achieved, i.e. whether the measures taken in EMDP will enhance the potentials or mitigate negative impacts. This survey will also probe sample households and key informants on how the whole process might be better done next time.

Reporting and Distribution

19. The M&E reports shall be submitted to YPCD, PEC, YEAC, project area counties and townships, and ADB on an annual basis. Copies sent to the ADB should be in English.

20. The baseline survey should be reported in full to YPCD and ADB. Subsequent reports should provide summaries of principal findings, tabulations of key indicators, qualitative and quantitative descriptions of main changes in socioeconomic changes of minorities and conclusions and implications, if any, for additional action/ assistance.

21. The final M&E Report will constitute a final assessment on the EMDP process and detail the extent to which the EMDP has (i) complied with ADB policy and (ii) contributed to the welfare of minorities in project areas.

Qualification of Contracted Institute to Implement the M & E

22. The qualification of the contracted institute to carry out this external M & E includes:

• At least five years of working experiences in similar tasks with international development projects

• Sound knowledge background on ethnic minorities in Yunnan, social sciences, and participatory development • Knowledge and skills with the designing of instruments for data collection, especially at the community level • Experiences and skills in using participatory rural appraisal (PRA).

Estimated Budget

23. A total of $36,000 (CNY280,000) is estimated to cover the costs of external monitoring and evaluation. A total of six investigations/surveys will be conducted, including the baseline survey. The total cost includes remuneration, per diem, travel expenses, report preparation, and other administrative expenses.

Budget for External M&E on EMDP Implementation

Item No. Unit Unit Cost Amount (USD) (USD) Remuneration 80 Days 100 8,000 Per Diem 60 Days 100 6,000 Land transportation/Vehicle Rental 60 Days 100 6,000 Survey Assistants 120 Days 9,000 Reports and translation 5,000 Management Overhead 2,000 Total 36,000 Note: The cost and financing sources will be reviewed during appraisal.