Resettlement Planning Document

Resettlement Plan Document Stage: Final Project Number: 33437-01 November 2008

DAOWAI Dyke Subproject (Section Jinyang St. to Shibadao St), City, Province

Under

People’s Republic of : Songhua River Flood Management Sector Project

Prepared by Heilongjiang Provincial Project Office and Harbin ADB Project Implementation Office

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

NDRC has approved the construction of Daowai Dyke Work in Harbin. The work is expected to commence in March 2009 with a construction period of one year. Harbin Municipal Government (HMG), through NDRC/MOF, has requested a loan from ADB to finance part of the project. Accordingly, the Project must be implemented in compliance with ADB social safeguard policies. This RP represents a key requirement of ADB and will constitute the basis for land acquisition, compensation and resettlement. The RP complies with PRC laws and local regulations but includes some additional enhancement measures and implementation and monitoring arrangements to ensure high quality resettlement results.

HMG hereby approves the contents of this Resettlement Plan and guarantees that funds will be made available as stipulated in the budget. HMG has discussed the draft RP with the local people and agencies, and has obtained their acceptance. HMG authorizes HPO as the responsible agency to manage the implementation of the Project and related resettlement activities.

Approved on August 28, 2008 by:

Jiang Ming Standing Deputy Mayor of HMG Table of Contents

ABBREVIATION ,,,

EXECUTIVE SUMMARY ,9

1. GENERAL DESCRIPTION OF THE PROJECT  

1.1 Brief Description of the Project   1.2 Affected and Benefited Area  

2 PROJECT IMPACTS  

3 SOCIO-ECONOMIC CONDITIONS 

3.1 Basic Economic Conditions of Harbin City   3.2 Basic Conditions of Daowai  3.3 Basic Conditions of Affected People 

4. LEGAL FRAMEWORK AND RESETTLEMENT POLICY  

4.1 Legal Rationale   4.2. Regulations for Compensation  4.3 Compensation Standards  4.4 Entitlement Matrix 

5 BUDGET AND DISBURSEMENT  

5.1 Total Cost Estimate   5.2 Source of Funds   5.3 Funds Flow   5.4 Arrangement of Disbursement  

6. RESETTLEMENT MEASURES 

7 SCHEDULE OF RESETTLEMENT ACTIVITIES   7.1 RP Implementation vs. Construction Progress   7.2 Implementation of Resettlement Activities   7.3 Schedule of Resettlement Activities  

8. RESETTLEMENT ORGANIZATION 

9. PARTICIPATION AND CONSULTATION  

10. GRIEVANCE AND APPEAL PROCEDURE 

11. REPORTING AND MONITORING 

ANNEX 1˖ NAMELIST OF PARTICIPANTS CONSULTED FOR RP   ANNEX 2˖ LOCATION MAP OF DAOWAI DYKE SUBPROJECT   ANNEX 3 LIST OF LOSSES SUFFERED BY THE ENTERPRISE   ABBREVIATION

APs - Affected Persons DDG Daowai District Government DWRO - Daowai District House Removal Administration Office HDRC Harbin Development and Reform Committee HEPB - Harbin Environment Protection Bureau HHRO - Harbin House Removal Administration Office HLB Harbin Land Bureau HPLG - Harbin ADB Project Leading Group HPIO - Harbin ADB Project Implementation Office HPO - Harbin ADB Project Office HWCI - Harbin Water Conservancy Planning, Design and Research Institute HWRB - Harbin Water Resources Bureau LAR - Land Acquisition and Resettlement MWR - Ministry of Water Resources PPO Heilongjiang Provincial ADB Project Office RP - Resettlement Plan SLAC - Songhua River and Liao River Administration Committee EXECUTIVE SUMMARY

Daowai Dyke subproject is one of the important core subprojects of the Songhua River Flood Control project, which will improve the standards of flood control in urban area of Harbin city. It has a length of 1.95km, consisting of flood control, transportation, garden and entertainment. The dyke will directly protect Daowai District, which has dense population, and developed commercial and trade.

Daowai dyke works will elevate and thicken the original dyke to improve the flood control standard of Harbin City to 1-flood-in-100-years. The construction consists of earthwork, flood control wall, retaining wall, overlapped beam watergate, repairing road and bench on the top of the dyke, etc.

The impact of the subproject will minimal. There are no permanent land acquisition nor resident house to be affected. The temporary land occupation of 2.54 ha is state-owned land. The attachments affected by the subproject include 274 trees, 17,854 bushes and flowers, 9,532.85 sq m of lawn. The affected public facilities are 2 public toilets, 37 garbage bins and 2 service pavilions. There are 2 enterprises and some business operators to be affected with a total of 32 persons.

The compensation standards are determined by consultation with the representatives from the affected enterprise. The compensation standards are CNY1,000 per sq.m for steel structural houses and CNY950 per sq.m for non-steel structural houses

The total resettlement cost for the subproject is CNY5.71 million, of which, CNY1.53 for Garden Rehabilitation will be financed by Financial Bureau of Harbin City, and implemented by Urban Construction Bureau of Harbin City. The remaining costs will be financed by the Project Budget.

The preparation and implementation of this RP will be the responsibility of the Harbin ADB Project Implementation Office. Resettlement Plan Chapter 1

I. GENERAL DESCRIPTION OF THE PROJECT

1.1 Brief Description of the Project

1 Daowai Dyke subproject is one of the important core subprojects of the Songhua River Flood Control project, which will improve the standards of flood control in urban area of Harbin city. It is from Jinyang Street to Shibadao Street with a length of 1.95km, consisting of flood control, transportation, garden and entertainment. The dyke will directly protect Daowai District, which has dense population, and developed commercial and trade.

2 Daowai dyke works will elevate and thicken the original dyke to improve the flood control standard of Harbin City to 1-flood-in-100-years. The construction consists of earthwork, flood control wall, retaining wall, overlapped beam watergate, repairing road and bench on the top of the dyke, etc. Details of the works include 1)167,600 cu m of earthwork, 2) remove the existing 1.81km-long flood control wall, 3) rebuild 1.68km-long reinforced concrete flood control wall, 4) construction of 4 overlapped beam water gates, located at Jinyangjie Plaza, Hangyunzhan Plaza, Shibadaojie Plaza and Yard Channel, 5) remove and rebuild 1.78km-long retaining wall on the first bench, 6) repair 1.95km-long pavement with a width of 3.6m on the first bench, 7) repair 1.95km-long pavement with a width of 9m on the top of the dyke, 8) remove and rebuild the pedestrian road on the bench, etc.

1.2 Affected and Benefited Area

3 Daowai dyke is located on the right bank of the Songhua River and in the northern part of the urban area of Harbin City. After the completion of the project, the flood control standard can be directly increased to 1-flood-in-100 years for the area. This can greatly improve the security of the area, and benefit the sustainable development of the area.

4 The Subproject Beneficiary Area (SBA) includes Daowai District with an area of 28.1 km2, which is the urban area of Harbin City with a population of 927,000. This area has developed commercial and trade, light chemical industry and processing industry with an asset of CNY51.273 billion.

5 As the construction of the subproject will be carried out on the existing dyke, no land acquisition will be required. The affected agencies will be navigation stop of Harbin Shipping Company and Garden Division of Daowai District in Harbin.

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II. PROJECT IMPACTS

6 The Daowai Subproject will be constructed on the existing dyke, the impact of the subproject will minimal. The details of project impact are from the detailed measurement survey made jointly by the HWCI and the affected agencies, and will be discussed in the following sections.

7 No permanent land acquisition will be required.

8 The temporary land occupation by the subproject will be 2.54 ha, located on Gou Island in the Songhuajiang river, which is state-owned land. No compensation payment is necessary during the construction because the land is unused and no adverse impacts will occur.

9 No residential houses will be affected.

10 The attachments affected by the subproject include, 274 trees, 17,854 bushes and flowers, and 9,532.85 m2 of lawn.

11 There are 2 enterprises, navigation stop of Harbin Shipping Company and Garden Division of Daowai District in Harbin, to be affected with 11 staff affected. There are also 6 business operators with 15 staff affected, including 2 commercial stands--simple sheds selling beverage on the dyke.

12 The affected public facilities include 2 public toilets and 37 garbage bins. Table 2.1 presents the details of the project impacts.

Table 2.1 Project Impacts of Daowai Subproject

1.Buildings Unit Quantity Agency 1.1 Simple house Navigation Stop of Harbin Shipping Co 1319 with steel structure m2 1.2 Simple house Navigation Stop of Harbin Shipping Co 1430 without steel structure m2 1.3 Indoor facility Each 1 Navigation Stop of Harbin Shipping Co 2. Attachment on ground  2.1 Hand-rail m 6466.2 Garden Division of Daowai District, Harbin 2.2 Lawn m2 9532.85 Garden Division of Daowai District, Harbin 2.3 Tree Each 274 Garden Division of Daowai District. Harbin 2.4 Bush and flower Each 17854 Garden Division of Daowai District, Harbin 2.5 Garbage bin Each 37 Garden Division of Daowai District, Harbin 2.6 Public toilet Each 2 Garden Division of Daowai District, Harbin 2.7 Commercial Stand Each 2 Garden Division of Daowai District, Harbin

13 Table 2.2 shows the affected entities and persons. The affected entities include navigation stop of Harbin Shipping Company and Garden Division of Daowai District. The warehouses of Navigation Stop of Harbin Shipping Co will be demolished, the main building of the Navigation Stop will not be demolished, but there are 4 businesses within the building that will be affected during the construction. There are 30 staff within the main building including business operators and their employees of restaurant, hotel and dancing hall, flower shop and the business management staff of the Navigation Stop. In addition, there are also 2 operators of commercial stands in the Garden that need to be relocated.

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Table 2.2 Affected Entities and Persons of Daowai Subproject

Affected Entities Affected Business Operators Affected Workers 1. Harbin Shipping Company Navigation Stop/Warehouse 11 Restaurant 3 Dancing hall 5 Hotel 5 Flower shop 6 2. Garden Division Commercial stand A 1 Commercial stand B 1 Total – 2 enterprises 6 business operators 32

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III. SOCIO-ECONOMIC CONDITIONS

14 The project affected area of the proposed Daowai Dyke subproject covers Daowai District, Harbin City, Heilongjiang Province. The socio-economic Conditions of the area will be described in the following sections.

3.1 Basic Economic Conditions of Harbin City

15 Harbin City is located at 125°42ƍE-130°10ƍE and 44°04ƍN-46°40ƍN, at the center of northeast Asia, the north of the Northeast of China, the south of Heilongjiang Province. The city, consisting of 8 districts and 11 counties, 115 towns, 77 townships and 94 sub-districts, has an area of 53,000 sq.km with a population of 9,874 thousand among 3,208.1 thousand households in 732 urban residents' committees and 1,879 villages. The population density is 186.3 persons per sq. km.

16 The mineral resources are abundant in Harbin City. There are 83 kinds of minerals, of which 25 kinds of minerals had been ascertained available for industry, and 20 of them including coal, natural gas, copper, zinc, tungsten, molybdenum, dispersed elements, silex, pyrite, potassium feldspar, serpentine rock and turf, are important mineral resources in the Province.

17 The forest land, including timber forest, economic forest, fuel forest and protection forest etc., is mainly distributed in northwest slope of Zhangguangcai Mount and south slope of Xiaoxing'an Mount on the east mountain area. The major varieties consisting of the forests are Pinus koraiensis, larch, yellow pineapple, bass, elm, poplar and birch etc., and fruit trees of temperate zone such as apple and grape, and special economic plants.

18 In 2007, the gross domestic product (GDP) was CNY243,680 million,13.5% growth by that of 2006. The contribution rates to the economy growth are 6.8%, 41.6% and 51.6% by the primary, secondary and tertiary industry respectively. And the per capita GDP was CNY24,768, 12.8% increase than that in 2006.

19 The gross output value of farming, forestry, livestock and fishery was CNY58.3 billion with the gross output of grains by 9,75 billion Kilograms, and the added value of industrial was CNY68.9 billion in 2006. The investment in fixed assets was CNY103.06 billion, the total volume of retail sales of public consumption goods was CNY103.6 billion, 15.8% of increase than that in 2006 with deduction of price inflation. The total value of import and export was USD3,289 million, foreign fund investment was USD455 million, and 144 joint ventures and foreign investing enterprises were established in 2006.

20 Harbin City, intersecting with 6 trunk railways and 7 trunk highways and more than 50 national and international flight lines, is one of the important hubs of transportation between Europe and Asia. The passengers and freights can be transferred to over 200 airports in more than 100 countries and regions. The Songhua River has abundant water, connecting with Heilongjiang River, water surface transportation can be achieved for river-ocean combined transportation. The first inland port has been opened in Harbin City, forming an important containers distributing center in . The developed transportation associated with the harbor will

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enhance the capability of commodity distribution in Harbin City.

3.2 Basic Conditions of Daowai District

21 Daowai district, consisting of former Daowai District and Taiping District, located in the middle-east of Harbin City, has an area of 618.6km2, including an urban area of 40.62km2. In the urban area of the district, there are 22 sub-district offices, and in suburban area, there are 4 towns and 38 administrative villages. The area of farmland is 8,434 ha. The total population of the district is 801,500.

22 In 2007, the gross domestic product (GDP) was CNY6,750 million,16% growth by that of 2006. Of which, the primary industry was 182million, 6.4% growth by that of 2006, the secondary industry, 3,757million, 18% growth by that of 2006, and the tertiary industry, 2,807million, 14.2% growth by that of 2006. The contribution rates to the GDP are 2.7%, 55.7% and 41.6% by the primary, secondary and tertiary industry respectively. The financial income of the district was CNY1,149million, 16.3% growth by that of last year.

23 The gross output value of farming, forestry, livestock and fishery was CNY383 million in 2007 in Daowai District, including Yongyuan Town and Juyuang Town. Of which, CNY49 million was from farming, CNY1 million from forestry, CNY237 million from livestock, and CNY18 million from fishery. Of the farming area in Daowai District in 2007, 4,384ha is for grain crops and 3,496 ha for economic crops and other crops.

24 In 2006, the gross industrial output was CNY12,556 million in Daowai District, 21% increase by that of last year. The sales revenue was CNY10,631 million with a profit of CNY526 million, 17.5% and 15.8% increase respectively.

25 In 2006, 891 projects were introduced into Daowai District with an amount of CNY5,400million, 3.8% growth by that of last year. The sales revenue of commerce was increasing steadily with a sales income of CNY 1,218 million, 16.5% increase over that of last year by catering and service trades. The building industry was progressed smoothly with an output value of CNY 7,360 million, 43.5% increase over that of 2006.

26 The transportation is well developed with perfect communication establishments in the district. There are 396 City-level roads with a length of 223.64km, of which, 19 roads with a total length of 40.47km are Class I street, 36 roads with a total length of 36.52km are Class II street, 206 roads with a total length of 102.78km are Class III street, and 136 roads with a total length of 43.87km are Class IV street. There are 2 County-level highways with a length of 24.1km and 23 Township-level highways with a length of 140.88km

3.3 Basic Conditions of Affected People

27 The basic social and economic conditions of the APs are from the survey carried out by the Harbin Water Conservancy Planning, Design and Research Institute (HWCI) for the Preliminary Design, and the interviews with the APs for preparing this RP.

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28 The affected peoples include business operators and their employees of restaurant, hotel and dancing hall, flower shop, and the business management staff of the Navigation Stop, and two commercial stand operators. There are 23 males and 9 females with ages between 30 and 55 among the 30 APs. Their education levels are high school or above. The average monthly income per capita of the APs is about CNY1,500, which is the major source of their family income. Of the APs, there are no poverty people or ethnic minority, so no special assistance measure needs to be taken for vulnerable people.

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IV. LEGAL FRAMEWORK AND RESETTLEMENT POLICY

4.1 Legal Rationale

29 The legal framework consisting for the RP are the national laws and regulations, Local Regulations and ADB policies. The national laws and regulations applied for the subproject include Urban Realty Administration Laws of the PRC and Urban Houses Removal Administration Laws of the PRC. Policies of Asian Development Bank are Handbook on Resettlement: A Guide to Good Practice, ADB(1998) and Involuntary Resettlement Policy of ADB (1995). The local Document and Regulations are Provisional Administration Methods for Houses Demolition and Relocation in Urban Area of Harbin City, issued by the Municipal Government Order 155 and effective since Aprtil 15, 2007, and Documentation of Preparing RP and revising the Feasibility Study Report for Daowai Dyke Project issued by the Reform and Development Committee of Harbin Municipal Government in 2008

4.2. Regulations for Compensation

30 The relevant specifications in the Documentation of Preparing RP and revising the Feasibility Study Report for Daowai Dyke Project is as follows. The cost of removal and rebuild the Jiangpan Garden affected by Daowai Dyke Project financed by ADB will be included in the Overall Plan of Urban Construction in Harbin City, and the construction will be the responsibility of the Urban Construction Authority of Harbin City.

4.3 Compensation Standards

31 The compensation standards for the land acquisition and resettlement of the subproject are formulated in accordance with the national laws and regulations of the People's Republic of China, local regulations, and ADB’s Involuntary Resettlement Policy. ADB’s key policy principles are as follows:

i) Resettlement should be avoided from taking place as far as possible: ii) If resettlement can’t be avoided APs should be minimized by feasible alternatives and RPs should be prepared for those displaced. iii) Compensation and assistances should be provided to the affected persons to prevent their future economic and social livings from changing due to the impacts of the Project. iv) The affected persons should be informed of and consulted on resettlement and compensation option. v) The affected persons without normal land tenure should receive compensation. Special considerations and relevant assistances should be provided to the households headed by woman or other vulnerable persons such as original inhabitants and minorities to improve their status. vi) Resettlement should be an integral part of project design to be planed and executed. vii) The costs of resettlement and compensation should be involved in the expenses and incomes of the Project. viii) Much attention should be given to the participation of persons with correlative benefits in the preparation and execution of the RP.

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ix) A smooth grievance mechanism should be established. x) Compensation should be legally transferred prior to displacement of APs and commencement of civil works.

4.3.1 Compensation Standard for Houses

32 The compensation standards for buildings was negotiated based on consultation with the representatives from the affected enterprises. The compensation standards are as follows: CNY1,000 per m2 for simple house with steel structure and CNY950 per m2 for simple house without steel structure.

4.3.2 Compensation Standards for Auxiliaries

33 The compensation standards for the auxiliaries are as follows in Table 4.1. Table 4.1 Compensation Standards for Auxiliaries Item Unit Standard (CNY) House Auxiliaries Boiler Each 30,000 Hand-rail CNY/m 50 Trees CNY/tree 500-5,000 Attachments Lawn CNY/m2 20 on Field Bush and Flower CNY/Each 20 Garbage bin Each 440 Public toilet Each 32,000 Commercial Stand Each 15,750 The trees, bush and flowers affected by the project in Jiangpan Garden will be replanted. The compensation standards will cover the cost for replanting.

4.3.3 Relocation Subsidy Standards for the Establishment

34 The removal subsidy standards for the establishment are negotiated and determined with the representative from the affected agencies. They will be as follows: Structural removal and transportation fee CNY34.8/ m2 Material relocation fee CNY26/ton. Removal subsidy for auxiliaries:600,000/lump sum

4.3.4 Transition Allowance for Business Loss and Work Loss

35 The transition allowance for a commercial business within the main building of Navigation Stop will be calculated on the basis of average monthly post-tax profit during the six months prior to project commencement as declared by the business to the tax-collection agencies. The transitional allowance for employees' loss of income will be equal to the average monthly earnings (including basic salaries and national subsidies) of all registered employees (including those retired) for 6 months prior to construction. The construction will be carried out section by section. For one section, the construction period is 3 months. This allowance will be paid on a monthly basis for 3 months from the date of project commencement.

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4.3.5 Others

36 Administrative Cost: The administrative cost estimated for the organizations responsible for implementation of resettlement and rehabilitation will be at the rate of 3 per cent of the total amount of compensation payable in their jurisdictions.

37 Contingencies: the quantity of the affected buildings and auxiliaries has been determined with documents signed by the chief from the affected enterprises, no unforeseen changes of physical quantity will be expected during RP implementation. Since resettlement will be implemented once the RP is approved and be completed within the schedule of three months (i.e., by the end of 2008), there is no need to consider the inflation rate in such a short period, so no provision of contingency is necessary in the budget of resettlement cost. In any case, if the final compensation amounts are higher, the HPO will guarantee the provision of additional budget.

4.4 Entitlement Matrix

Impact Type Impacts Entitlements Standards Structure 1 enterprise z Buildings, CNY1,000 per m2 for house simple house with steel Auxiliaries and structure and CNY950 per removal costs m2 for simple house based on without steel structure appraisal Boiler: CMY30,000/each z Subsidy for Work loss: workers that CNY3,000/person/month temporarily for 3 months lose job payment Attachments on 1 enterprise Attachments Hand-rail: CNY50/m, Tree: field CNY500-5,000/each, Lawn: CNY20/m2 Bush and Flower: CNY20/each, Garbage bin: CNY440/each, Public toilet: CNY32,000/each Commercial stands: CNY15,750/each 2 operators Simple shed

Business loss 4 operators Subsidy for Please refer to Annex 3 for business loss and business loss workers that Work loss: temporarily lose job CNY3,000/person/month payment for 3 months

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V. BUDGET AND DISBURSEMENT

5.1 Total Cost Estimate

38 The resettlement cost will be included into the total budget of the Subproject. The total resettlement cost for the subproject is CNY5.716 million, of which, CNY1.53 million financed by Financial Bureau of Harbin City will be used for rehabilitation of the Garden and implemented by the Urban Construction Bureau of Harbin City. The remaining cost will be financed by the Project budget. The detailed budget for the RP of Daowai dyke subproject is presented in Table 5.1.

Table 5.1 Budget for Resettlement Plan of the Subproject

Item Unit Compensa- Quantity Cost tion Standards

A. Compensation fee for Buildings    2,707,500 1 Simple house with steel structure CNY/m2 1,000 1,319 1,319,000 2 Simple house without steel structure CNY/m2 950 1,430 1,358,500 3 Indoor facility Ea 30,000 1 30,000 B. Auxiliaries on the ground   1,530,827 1 Hand-rail CNY/m 50 6466.2 323,310 2 Lawn CNY/m2 20 9532.85 190,657 3 Tree Each 500-5000 274 548,000 4 Bush & Flower Each 20 17854 357,080 5 Garbage bin Each 440 37 16,280 6 Public Toilet Each 32000 2 64,000 7 Commercial Stand Each 15750 2 31,500 C. Relocation Subsidy   745,065 1 Structural removal and transport fee CNY/m2 2749 34.8 95,665 2 Materials relocation fee CNY/ton 1900 26 49,400 3 Removal subsidy for auxiliaries Lump sum 600,000 D. Transition Allowance  495,492 1 Business loss CNY/month 75164 3 225,492 CNY/person 3 x 30 3000 270,000 2 Work loss /month =90 E. Basic cost (item A-D) 5,478,884 F. Survey, Plan & Design cost 3% 118,442 G. Administrative Cost 3% 118,442 Total   5,715,768 Note: 1. The expense of Item B will be borne by the Urban Construction Authority of Harbin City. 2. The administrative cost is 3% of the basic cost excluding Item B. 3. The administrative cost includes the cost of internal monitoring and supervision by HPIO.

5.2 Source of Funds

39 According to the subproject arrangement, all of the funds come from financial allocation. During the implementation of the RP, Harbin ADB Project Implementation Office (HPIO) will be responsible for provision of adequate funds to carry out the implementation of the RP in a timely fashion.

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5.3 Funds Flow

40 Prior to implementation of resettlement, HPIO will sign compensation agreements with the affected enterprises and business operators. The agreements will specify the compensation amount, payment method, payment schedule, period of relocation and other responsibilities. The funds flow is presented in Fig.6.3.

Financial Allocation HPIO Affected enterprises and business operators

Fig.5.3 Resettlement Funds Flow

5.4 Arrangement of Disbursement

41 The construction of the dyke will be carried out section by section. The resettlement action will be taken just before the civil work construction, and it will take a few days to remove the simple structures. According to the implementation schedule of the Subproject, the construction period will be one year and the removal and resettlement of the affected enterprise will be completed within scheduled period of three months, so the compensation funds will be paid 7 days before the construction of the subproject.

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VI. RESETTLEMENT MEASURES

6.1 Principles of Resettlement

42 The principles of resettlement to be adopted for the affected enterprises are as follows: 1) Cash compensation will be paid for the buildings to be removed at the replacement price by evaluation. 2) Compensation will be paid by the subproject for the loss of business and employers during the process of project implementation. 3) Adequate and effective measures will be taken during the construction period in order to avoid possible business loss of the affected enterprise as much as possible.

6.2 Resettlement of the Affected Enterprises

43 There are 2 enterprises and 6 business operators to be affected by Daowai Dyke Subproject. The Harbin Shipping Company is affected by the demolition of buildings and business loss. The structures to be affected are the temporary warehouse built on the riverside using the retaining wall as part of the simple houses without normal land tenure. Compensation for the structures will be paid, including relocation subsidies, to the affected company. The main building of the company is also located on the riverside of the retaining wall. The main building will not be relocated, but some of the buildings are rented to business operators as restaurant, hotel, dancing hall and flower shop, and they will be affected by business loss during the project implementation. Temporary road access will be made available for the main building to avoid disturbance of daily activities and possible impacts on the business within the building. In addition, a provision of 3 months of business income and work loss will be made available for the business operators

44 The Garden Division of Daowei District will need to have some attachments on the ground relocated. These attachments are trees, flowers, and lawns located on the top of embankment, which is a part of Jiangpan Garden as leisure land for the local people. The Urban Construction Bureau will be responsible for the reconstruction of the garden. Also, 2 commercial stands to be affected will be compensated and relocated at the nearby suitable location so to avoid impacts on their business. HPIO will assist the two operators to shift their businesses to a suitable location in a timely manner, to minimize loss of business income.

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Resettlement Plan Chapter 7

VII SCHEDULE OF RESETTLEMENT ACTIVITIES

7.1 RP Implementation vs. Construction Progress

45 The Daowai dyke subproject is scheduled to be completed within a period of one year. The earth works should be done in low flow periods before or after floods. According to the present schedule, the construction of the subproject is scheduled to start in March 2009 and end in March 2010. The structure relocation in the Resettlement Plan should be finished before the commencement of the Subproject construction activities.

7.2 Implementation of Resettlement Activities

46 At the beginning of August 2008, a detailed survey was made by HWCI of the buildings to be relocated for the preliminary design. The size and type of the buildings to be affected has been determined and confirmed by the representative from the affected establishment. The compensation rate has bee negotiated and agreed between HPO and the affected enterprises and business operators. Once the permit of house removal is obtained from Harbin House Removal Administration Office (HHRO), the compensation agreement will be prepared and signed with the affected enterprises and business operators.

7.3 Schedule of Resettlement Activities

47 Based on the project construction schedule, and the preparation and implementation of resettlement activities, the schedule of the resettlement activities is presented in Table 6.1.

Table 6.1 Implementation Schedule of Resettlement Activities Responsible No. Resettlement Tasks Deadline Status Agency 1. Detailed Measurement Survey (DMS) HWCI 2008.8.10 Complete d 2 Circulation of Draft RP HPO 2008.9.7 Complete d 3 Approval of RP & budget HPO 2008.9.15 (including compensation rates) 4 Issue of final RP HPIO 2008.10.2 0 5 Application and obtaining of permit of house HPIO 2008.10.3 removal 0 6 Issue the Notice of House Removal DWRO 2008.11.7 7 Signing Compensation Agreement HPIO 2008.11.1 5 8 Payment of Compensation Funds HPIO 2008.11.2 0 9 House Removal and relocation HPIO 2009.3.31 11. Documentation of Consultation HPIO 12 Documentation of Grievances HPIO

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VIII. RESETTLEMENT ORGANIZATION

48 During the project implementation, the agencies responsible for the planning, administration, implementation are presented in Figure 8.1.

HPLG

HPO

Survey and HPIO Design DWRO Agency

(HWCI)

Figure 8.1: Organization Chart of Resettlement

49 Harbin ADB Project Leading Group (HPLG) headed by Mr. Jiang Ming, Standing Deputy Mayer, assisted by Mr. Li Xirong, Deputy Mayer, with members from Harbin Development and Reform Committee, Harbin Water Resources Bureau (HWRB), Daowai District Government (DDG), Harbin Environment Protection Bureau (HEPB)ˈ etc, will be responsible for the leading, organization, coordination, policies establishment, approval of the RP and implementation of internal monitoring of land acquisition and resettlement of the Subproject.

50 Harbin ADB Project Office (HPO) is headed by and located in HDRC with the participation of HWRB and DDG. It is responsible for the organization, coordination, administration, information collection and circulation, etc of the subproject construction, in which the HWRB will be responsible for the dyke construction and DDG will be responsible for the resettlement.

51 Daowai House Removal Administration Office (DWRO) under Harbin House Removal Administration Office will be responsible for the establishment of the compensation policies and standards for house removal, and participation in the implementation activities of the removal and compensation of the houses to be affected by the Subproject.

52 Harbin ADB Project Implementation Office (HPIO), Harbin Water Conservancy Works Construction and Management Division of HWRB, will be responsible for the implementation, coordination and administration of the resettlement.

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53 Harbin Water Conservancy Planning, Design and Research Institute (HWCI): Be responsible for the subproject design and the scope determination for the land acquisition and house removal.

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IX. PARTICIPATION AND CONSULTATION

54 In order to formulate policies related to resettlement, prepare the RP, minimize complaints and disputes from AP, and accomplish the target of appropriate resettlement, a great deal of efforts have been made and will be made on public participation and consultation during stages of preparation and implementation of the RP. The activities of participation and consultation carried out and to be carried out are described as follows:

55 (1) Public participation in project preparation: In the stage of project preparation, including the feasibility study, preliminary design and preparing RP, HPO had asked Harbin Municipal Government, relative experts, Daowai District government and the representatives from the affected enterprises and business operators for their suggestions, proposals and opinions on the schemes of construction, compensation and resettlement of the Project.

56 (2) Circulation of RP: The draft RP was issued and disclosed to the affected enterprises and business operators on 17 September 2008 to solicit their opinions on the compensation standards, payment of compensation, resettlement measures, etc. Once the RP is approved, the final RP will be made available for the APs.

57 (3) Announcement of house removal will be made before the resettlement with the information of brief introduction of the subproject, the affected area, policies of resettlement, consisting of compensation standards, resettlement organization, compensation disbursement, etc.

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X. GRIEVANCE AND APPEAL PROCEDURE

58 The participation of the APs will be always strengthened during the preparation and implementation of the RP. The draft RP was disclosed to APs in September and the final RP will be disclosed in October 2008. Meanwhile, a transparent and effective procedure of grievance and appeal as follows will be established to avoid the occurrence of major grievances.

The APs will be informed about the above grievance and appeal procedure through public notices and consultation meetings to make them understand their rights of grievance and appeal.

Stage 1 If any AP does not agree with compensation rate or rehabilitation measure, he/she can make a written or oral complain to Harbin ADB Project Implementation Office (HPIO). In case an oral complaint is made, it will be recorded in writing and resolved by HPIO within 2 weeks.

Stage 2 If the AP is dissatisfied with the resolution proposed in Stage 1, he/she can appeal to HPO after receiving the decision. A reply should be made by HPO to the appeal within 2 weeks.

Stage 3 In case the AP is still not satisfied with the resolution proposed in Stage 2, he/she can appeal to Harbin House Removal Administration Office asking for administrative arbitration after receiving the decision of HPO. The arbitration institutions should make arbitral decision within 30days.

Stage 4 In case the AP is still not satisfied with the arbitral decision, he/she can appeal to the People’s Court in accordance with the Civil Procedure Act after receiving the administrative arbitration. The AP can appeal any aspect of the resettlement including compensation.

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XI. REPORTING AND MONITORING

59 During the project implementation, the HPIO will establish sound record and reporting system so to report to ADB the implementation status of the resettlement activities in the Quarterly Progress Report (QDR) written in English.

60 The HPO will take an overall responsibility for the project monitoring and supervision during the project implementation phase. The main contents to be monitored are: (i) compensation payments; (ii) house/structure demolition; (iii) grievance redress; and (iv) relocation and restoration of APs. The internal monitoring system will be enforced to ensure the quality of resettlement implementation.

61 Since the affected enterprise is a state-owned company, and the other affected agency is a government department, both of them have a strong voice. During the RP preparation, initial compensation agreements (see Annex 3) were made between the affected enterprises, business operators and HPIO. The compensation rate applied to this RP is proposed by the affected enterprise and agreed by the HPIO.

62. Songhua River Flood control Management Sector Project has entrusted an independent monitoring and evaluation institution which is Changchun Song-Liao Reservoir Area Resettlement Development and Training consultation Center. During the period of implementing resettlement plan, independent monitoring and evaluation agency will carry out two times every year to monitor and evaluate the compensation payments, restoration measures and conditions of the affected businesses and APs. Comprehensive reports will be prepared and submitted semi-annually to HPO and ADB.

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ANNEX 1˖ NAMELIST OF PARTICIPANTS CONSULTED FOR RP

Name Institution Title Telephone Jiang Heran HDRC Division Chief 0451-84664389 Zhang Guoyou HWRB Division Chief 0451-84831794 He Hongmin HWRB Deputy Division 0451-84831844 Chief Tian Yanping HWRB Subdivision Chief 0451-84831843 Que Zhixia HWCI Chief Engineer 0451-8271202 Ji YU HWCI 0451-8271205 Li Chunli HWCI 0451-8271207-8403 Gao Qingfeng HWCI 0451-8271207-8509 Zhang Zhanping HWRB Division Chief 0451-84897028 Li Lianqi Harbin Shipping Co Director 13936280930 Fu Baoqiang Garden Subdivision 13766844448 of Daowai District Zhao Jianpeng Harbin Water Director 13804534998 Resource Office of Daowai District Zhang Changyu Private Business operator

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ANNEX 2˖ LOCATION MAP OF DAOWAI DYKE SUBPROJECT

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ANNEX 3 LIST OF LOSSES SUFFERED BY THE ENTERPRISE

A. Structure loss No Name Structure Area (m2) Compensation Amount Note type Rate (CNY) (CNY) 1 Warehouse Steel 940 1000 940,000 2 Warehouse Soil 826 950 784,700 3 Warehouse wood 200 950 190,000 4 Warehouse Steel 124 1000 124,000 5 Warehouse Steel net 146 950 138,800 6 East Steel 20 1000 20,000 guardian box 7 West Concrete 94 950 89,300 guardian box 8 Freight Iron plate 100 1000 100,000 office 9 Boiler 30,000 house 10 Passenger Concrete 22 950 20,900 transport office 11 Passenger soil 15 1000 15,000 guardina box 12 Warehouse Steel 142 950 134,900 13 Restaurant concrete 120 1000 120,000 subtotal 2,707,600

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B. Business loss No Name Yearly 3 Month Note income(CNY) income(CNY) 1 Flower shop 80,000 20,000 2 Dancing hall 49,992 12,498 3 Hotel 80,000 20,000 4 Restaurant 57,000 14,250 5 Parking lot 96,000 24,000 6 Warehouse 538,980 134,745 Subtotal 225,493 C. Others 1 Structural 34.8/m2x2749 85,662* removal and transport fee 2 Materials 26/ton x1900 98,800* relocation fee 3 Work loss 30 x3000x3 270,000 subtotal 454,462 Total 3,621,948

* Calculation error

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