Social Monitoring Report PRC: Liaoning Small Cities and Towns

Social Monitoring Report

Project Number: 42382-013 August 2010

PRC: Liaoning Small Cities and Towns Development Demonstration Sector Project (Goubangzi Subproject—No.1 Baseline Report)

Prepared by: National Research Center for Resettlement, Hohai University

For Liaoning Project Management Office

This social monitoring report 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.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

ADB Financed Liaoning Small Cities and Towns Development Demonstration Sector Project

Resettlement Baseline Survey and External Independent M&E Report of the ADB Financed Goubangzi Town Urban Infrastructure Project (NO.1)

National Research Center for Resettlement, Hohai University Nanjing, Jiangsu, China August 2010

1 Project leaders : Chen Shaojun, Zhu Xiujie

Monitoring & Chen Shaojun, Zhu Xiujie, Shi Xiaohao, Zhang Chunliang, Li : evaluation staff Lihao, Liu Yuzhen, Peng Lingling

Prepared by : Chen Shaojun, Zhu Xiujie, Zhang Chunliang, Shi Xiaohao

Monitoring & evaluation : National Research Center for Resettlement (NRCR) agency

Address : NRCR, Hohai University, Nanjing, Jiangsu

Postcode : 210098

Tel : 025-83786503 / 83718914

Fax : 025-83718914

E-mail : [email protected]

2 Contents 1 Summary ...... 3 1.1 Introduction to the Project and the RP ...... 3 1.1.1 Introduction to the Project ...... 3 1.1.2 Summary of the RP ...... 3 1.2 External resettlement M&E ...... 4 1.2.1 Scope of this round of M&E ...... 4 1.2.2 Scope of this monitoring report ...... 5 1.2.3 Working procedure of M&E ...... 5 1.2.4 M&E methods ...... 5 2 Organization ...... 7 2.1 Organization ...... 7 2.2 Capacity of implementing agencies ...... 7 2.3 Evaluation ...... 8 3 Implementation of resettlement M&E ...... 9 3.1 Progress of construction and resettlement ...... 9 3.2 Implementation of resettlement ...... 9 3.2.1 Acquisition of collective land ...... 9 3.2.2 House demolition ...... 9 3.2.3 Attachments ...... 10 3.3 Resettlement policies and standards ...... 11 3.3.1 Acquisition of collective land ...... 11 3.3.2 House demolition ...... 12 3.3.3 Attachments ...... 14 3.4 Funds and disbursement...... 14 3.4.1 Compensation fees for acquisition of collective land ...... 14 3.4.2 Compensation fees for house and attachment demolition ...... 15 3.4.3 Fund disbursement ...... 15 3.5 Evaluation ...... 15 4 Resettlement baseline survey...... 16 4.1 Survey of affected villages ...... 16 4.1.1 Overview of Goubangzi Village, and land acquisition and house demolition impacts ...... 16 4.1.2 Overview of Majiahuang (Wangtun) Village, and land acquisition and house demolition impacts ...... 16 4.2 Sampling survey of affected households ...... 17 4.2.1 Households affected by land acquisition ...... 17 4.2.2 Households affected by house demolition ...... 19 4.3 Survey of affected enterprises ...... 19 4.4 Vulnerable groups ...... 20 5 Public participation, complaints and appeals ...... 21 5.1 Public participation ...... 21 5.2 Grievances and appeals ...... 22 6 Findings and suggestions ...... 23 6.1 Findings ...... 23 6.2 Suggestions ...... 24 Appendixes ...... 25 Appendix 1 Methods used in resettlement M&E (No.1) ...... 25 Appendix 2 Minutes of Typical Interviews for Resettlement Monitoring ...... 26 Appendix 3 Document for setting up the Project Management Office...... 29 Appendix 4 Document for setting up the Resettlement office ...... 30 Appendix 5 Pre-examination Document for Land Using...... 31 Appendix 6 Approval Document for Land Using ...... 32 Appendix 7 Details of Affected Family Baseline Investigation ...... 33 Appendix 8 Baseline Investigation Details of Family Houses Affected by Demolition.... 40 Appendix 9 Minutes of Affected Enterprises Interview ...... 41 Appendix 10 Project and resettlement events ...... 42

List of Tables Table 1-1 Scope of construction of the Project ...... 3 Table 1-2 Statistics of land acquisition and house demolition impacts of the Project ...... 4 Table 1-3 Basic information of resettlement-related contract packages of the Project ...... 4 Table 2-1 Resettlement implementing agencies ...... 8 Table 3-1 Implementation schedule of construction and resettlement ...... 9 Table 3-2 Comparison of planned vs. actual acquisition of collective land ...... 9 Table 3-3 Comparison of planned vs. actual demolition of rural residential houses ...... 10 Table 3-4 Comparison of planned vs. actual demolition of rural attachments ...... 10 Table 3-5 Comparison of planned vs. actual compensation rates for land acquisition ..... 11 Table 3-6 Comparison of planned vs. actual compensation rates for demolition of rural residential houses ...... 13 Table 3-7 Comparison of planned vs. actual compensation rates for demolition of non-residential houses ...... 13 Table 3-8 Resettlement of households affected by house demolition ...... 14 Table 3-9 Comparison of planned vs. actual compensation rates for ground attachments ...... 14 Table 6-1 Summary of public participation ...... 22

List of Figures Figure 2-1 Organizational chart ...... 7 Figure 3-1Details of compensation fees received by households affected by land acquisition in Banggouzi Village ...... 12 Figure 4-1 Income composition ...... 18 Figure 4-2 Expenditure composition ...... 19 Figure 6-1 Resettlement announcement ...... 21 Figure 6-2 Minutes of meeting held in Majiahuang Village ...... 21

1 Summary 1.1 Introduction to the Project and the RP

1.1.1 Introduction to the Project With the expansion of the built-up area and the sharp growth of the population of Goubangzi Town, where the west district is a key urban district developed by the town CPC committee and town government during the 11th Five-year Plan period, developing and utilizing the west town district has become a top priority in the urban construction of the town. In order to further strengthen the infrastructure construction of the west town district, promote the development and utilization of this district, and improve the standard of living of town residents, the Goubangzi Town Government has applied for a loan with the Asian Development Bank (“ADB”) for the Goubangzi Town Urban Infrastructure Project (the “Project”)1. The Project consists of the following components: 1) construction, reconstruction and expansion of 12 roads; 2) reconstruction of 13 alleys in the old urban area, with a total length of 26.22 km (including sewer lines and street lamps); 3) a belt-shaped park; and 4) a pumping station. The total capital investment in this project is CNY230.3313 million, in which the ADB loan is CNY94.1396 million (equivalent to US$13.8 million), and the balance is to be raised locally.

Table 1-1 Scope of construction of the Project Is land acquisition/house No. Component Engineering indicator demolition involved? Reconstruction of 3 primary roads, Road construction of 2 primary roads and 7 1 Yes construction secondary roads, and reconstruction of 13 alleys in the old urban area 2 Belt park Landscaping area 53,500 m2 Yes Yes. The land acquisition Pumping A rainwater pumping station, flow rate 3 impacts are included in station 7.5m3/s those of the belt park. Land acquisition House demolition area 1,483.8m2, and new land acquisition area 4 and house 260.92 mu demolition

1.1.2 Summary of the RP In September 2008, the first draft of the Resettlement Plan (RP) of the Project was completed. The final draft was submitted to ADB for approval in May 2010 after repeated revisions. According to the RP, land acquisition and house demolition will involve Goubangzi and Majiahuang Villages of Goubangzi Town, where 260.92 mu of collective land will be acquired permanently, affecting 204 households with 796 persons; residential hoses of 1,226 m2 and non-residential houses of 1,402 m2 will be demolished, affecting 55 households with 169 persons; an enterprise with premises of 257.8 m2 will be relocated, with a land acquisition area of 3,200 m2; this enterprise is

1 On July 25, 2007, the National Development and Reform Commission issued the Notice on the Planning of Chinese Alternative ADB-financed Projects in 2007-2009 with Document NDRC Foreign Capital [2007] No.328, defining the Liaoning Small Cities and Towns Development Demonstration Sector Project as an alternative ADB-project in 2007-2009.

3 an obsolete gas station, and no person will be affected.

Table 1-2 Statistics of land acquisition and house demolition impacts of the Project Affected village Category Item Unit Total Majiahuang Goubangzi (Wangtun) Acquisition of rural mu 260.92 222.36 38.56 1. Land acquisition collective land and impacts Affected households / 204 169 35 Affected population / 796 662 134 Demolition area of m2 1226 1226 residential houses Demolition area of m2 2. House demolition non-residential 1402 811 591 and impacts houses (guard rooms) Affected households / 55 47 8 Affected population / 169 149 20 Jointly affected / 3. Joint impacts of 38 30 8 households land acquisition and Jointly affected / house demolition 124 104 20 population Affected enterprises / 1 1 — 4. Affected House demolition m2 257.8 257.8 — enterprises area Land acquisition area m2 3200 3200 — 5. Affected Telegraph pole / 17 13 4 attachments

1.2 External resettlement M&E The M&E work of involuntary resettlement of the Project was undertaken by the National Research Center for Resettlement (NRCR), Hohai University.

1.2.1 Scope of this round of M&E According to the procurement plan of the Project, the Project has 4 contract packages, including one consulting package and 3 civil work packages. No goods contract package is involved in the Project. All the 3 civil work packages involve land acquisition and resettlement, as shown in Table 1-3. The resettlement work of the Project began in early May 2010, and was not completed by the end of July. Therefore, the scope of this round of M&E includes the progress of land acquisition, house demolition and resettlement, funding, management, institutional building and public participation, etc. This round of M&E aims to propose existing and potential issues in land acquisition and house demolition, and provide suggested solutions. A supplementary baseline survey was made on the households affected by land acquisition and house demolition during this round of M&E. Table 1-3 Basic information of resettlement-related contract packages of the Project Resettlement Expected implementation Investment Number of Mode of ADB date of plan No. Work estimate Type procurement procurement review bid Fact (US$1m) package opening finding Progress survey Roads 2, 3, 4, Civil Pre, Aug. Apr.-May 1 5.36 NCB A-GBZ1 Ongoing 5, 6, 7, 8, 9 work post 2010 2010

4 and 10

Alleys, Hexi segment, West Street, Not Civil Pre, Sep.-Oct. Apr.-May 2 Zhanqian 9 NCB A-GBZ2 started work post 2010 2010 Road, yet Zhongyang Road Landscaping, Road 1, bridge, rainwater Civil Pre, Sep.-Oct. Apr.-May 3 9.24 NCB A-GBZ3 Ongoing pumping work post 2010 2010 station, East Street, Goupan Road Total 23.6 —

1.2.2 Scope of this monitoring report The M&E of the components was conducted in order of land acquisition and house demolition, and each group of affected people will be followed up for resettlement and income restoration. When the Project is completed, a post-evaluation will be conducted. According to the survey and the RP, the main impacts of the Project are land acquisition, house demolition, and ground attachment demolition, in which land acquisition will affect one enterprise. Therefore, this round of M&E covered the following mainly:  Progress and amount of permanent land acquisition, compensation rates, disbursement of funds, and use of compensation fees  Progress and amount of house demolition, compensation rates, disbursement of funds, and use of compensation fees  Restoration of vulnerable groups  Restoration and rebuilding of infrastructure  Sampling analysis of income and expenditure of displaced households  Satisfaction of displaced with compensation and resettlement for land acquisition and house demolition  Institutional capacity building  Internal resettlement monitoring  Modes and effectiveness of public participation  Registration and handling of grievances and appeals

1.2.3 Working procedure of M&E 1) Preparing the terms of reference for resettlement M&E; 2) Designing the sampling plan; 3) Baseline survey; 4) Establishing a M&E information system; 5) Follow-up survey; 6) Data compilation and analysis; 7) Preparing the baseline survey and M&E report.

1.2.4 M&E methods Literature study: referring to and verifying documents, agreements and statistical reports on resettlement

5 Sampling survey: to design the sampling plan and survey questionnaire. The M&E team surveys randomly sampled affected households one by one according to the survey questionnaire. The scope of the survey includes household population, income and expenditure, and satisfaction with resettlement, etc. These affected households will be tracked in the next round of M&E until their income is restored. In this round of M&E, 39 households affected by land acquisition were subject to a questionnaire survey, accounting for 16% of all households affected by land acquisition. The survey covered household population, land, income and expenditure, etc. (see Appendix 7). 12 households affected by house demolition were subject to a questionnaire survey, accounting for 70% of all households affected by house demolition. The survey covered household population, housing type, housing area and building age, etc. (see Appendix 8). FGD: Two FGDs were held with the resettlement implementing agencies of the Project, and the district (township) and sub-district (village) committees concerned (with 25% of the participants being women) to learn the progress of land acquisition, house demolition and resettlement, comments and suggestions on the Project, and public participation. Key informant interview: The director of the Town PMO and the directors of the village committees were interviewed to learn the progress and impacts of the Project, and the affected people’s needs for and grievances about the Project (see Appendix 2). In-depth interview: involving the person responsible of the affected enterprise (see Appendix 9) and villager representatives (with 15% being women) The methods used in this round of M&E are described in more detail in Appendix 1.

6 2 Organization 2.1 Organization The Goubangzi Town Government established the Leading Group of the ADB Financed Goubangzi Town Urban Infrastructure Project in June 2008, which governs the project management office (PMO), headed by Zhang Yunxiang, deputy head of Goubangzi Town. The Town Urban Construction Bureau is the executing agency of the Project. See Appendix 3—Notice on establishing the construction leading group of the ADB Financed Goubangzi Town Urban Infrastructure Project (GTG Office [2008] No.6). In order to implement land acquisition, house demolition and resettlement properly, the land acquisition, house demolition and resettlement work leading group (“Town Project Leading Group”) was established in August 2009, headed by Wang Xue, head of Goubangzi Town, which governs the resettlement and compensation office, headed by Chang Xueping, Director of the Town Urban Construction Bureau. See Appendix 4—Document on establishing the land acquisition and house demolition leading group, and implementing agencies for the ADB Financed Goubangzi Town Urban Infrastructure Project (GTG Fa [2009] No.47). In May 2010, the Provincial PMO appointed NRCR as the independent external resettlement monitoring agency of the Project. The resettlement and land acquisition work of the Project began in early June 2010. As at July 30, the resettlement work was underway. The implementing agencies of land acquisition and resettlement of the Project include the Town Urban Construction Bureau, Town Land and Resources Station, Town Demolition and Resettlement Management Office and village committees concerned (see Figure 2-1).

Town Project Leading Group

Town PMO

Town Urban Townand Land external external C t ti

Town Demolition and Resettlement Management

Land House acquisition d liti

Figure 2-1 Organizational chart

2.2 Capacity of implementing agencies All implementing agencies have been adequately staffed based on the activity intensity of land acquisition and resettlement, as shown in Table 2-1. At the same time, each agency has a fixed office, office equipment and funds for resettlement implementation and management. These funds are paid by the Owner of the Project in a unified manner, and made available at the beginning of land acquisition and house demolition. The powerful resettlement implementation and management

7 organization ensures the successful implementation of resettlement.

Table 2-1 Resettlement implementing agencies Person Agency Workforce Contact info. responsible Town Project Leading Group 8 Wang Xue / Town PMO 6 Zhang Wei 0416-6658918 Town Urban Construction Bureau 3 He Ning / Town Demolition and Resettlement 8 Chang Xueping 0416-6652740 Management Office Town Land and Resources Station 2 Li Hongzhi 0416-6667968 Wang Yongxun, 0416-6652010, Village committees 3 Wu Xuegang, 0416-6687470, Sun Lingqiu 0416-6660887

2.3 Evaluation The M&E team surveyed the operation of the resettlement organization, and the findings reveal that the resettlement organization has been established, the responsibilities and duties of all levels defined, the staff and equipment are rationally provided, and the staff has been trained. However, since the Project is the first ADB financed project in Goubangzi Town and the resettlement staff is implementing land acquisition and resettlement for an ADB financed project for the first time, though part of the resettlement staff has participated in the preparation of the Project, and has got a certain understanding of ADB’s safeguard policy and RAP, there are still some deficiencies in policy understanding and resettlement practice (e.g., high staff liquidity, internal information reporting and file management). Therefore, the team advises the Town PMO to strengthen the training of its staff and improve its internal management systems while keeping the staff stable, so that resettlement activities can be implemented successful pursuant to the RP approved by ADB.

8 3 Implementation of resettlement M&E 3.1 Progress of construction and resettlement 3 contract packages of the Project involve resettlement. The implementation plans and progress of these contract packages are shown in Table 3-1.

Table 3-1 Implementation schedule of construction and resettlement Bid Fact Resettlement Construction No. Contract package opening finding implementation Remarks schedule date survey plan Not Roads 2, 3, 4, 5, 6, 7, 8, 9 and Apr.-May Not started 1 Jul. 2010 opened Jun.-Aug. 2010 10 2010 yet yet Alleys, Hexi segment, West Not Apr.-May Not started 2 Street, Zhanqian Road, Jul. 2010 opened Jun.-Jul. 2010 2010 yet Zhongyang Road yet Landscaping, Road 1, bridge, Not Apr.-May Not started 3 rainwater pumping station, Jul. 2010 opened Jun.-Jul. 2010 2010 yet East Street, Goupan Road yet

By the end of July 2010, none of the components of the Project had been started. The land acquisition and house demolition work of the Project began in early May 2010, in which land acquisition has been completed, and house demolition is underway and expected to be completed by the early of August 2010. 3.2 Implementation of resettlement

3.2.1 Acquisition of collective land The Land and Resources Department of Liaoning Province gave a reply on the land pre-approval of the Project on December 15, 2008, approving the land for construction of the Project (see Appendix 5). On February 26, 2010, the Liaoning Provincial Government approved the land acquisition plan of the Project (see Appendix 6). As compared to the RP, 244.26 mu of collective land will be actually acquired in Goubangzi and Majiahuang Villages, 16.66 less than planned; 243 households will be affected, 39 more than planned, and 834 persons will be affected, 38 more than planned (see Table 3-2).

Table 3-2 Comparison of planned vs. actual acquisition of collective land Planned Actual Difference Village Land Land Land Affected Affected Affected Affected Affected Affected collective acquisition acquisition acquisition households population households population households population area (mu) area (mu) area (mu) Goubangzi 222.36 169 662 201.56 200 675 -20.8 31 13 Majiahuang 38.56 35 134 42.7 43 159 4.14 8 25 (Wangtun) Total 260.92 204 796 244.26 243 834 -16.66 39 38 Note: “Planned” means that the data is based on the latest RP of the Project.

3.2.2 House demolition (1) Residential houses As compared to the RP, rural houses of 1,128 m2 in Goubangzi Village will be

9 actually demolished, affecting 16 households with 42 persons, 98 M2 and 1 household with 3 persons less than planned (see Table 3-3).

Table 3-3 Comparison of planned vs. actual demolition of rural residential houses (Household, person, M2) Planned Actual Difference Admin. House House House village Households Population Households Population Households Population area area area Goubangzi 17 45 1226 16 42 1128 -1 -3 -98

(2) Non-residential houses For the obsolete gas station affected by the Project, the demolition area (257.8 M2) and affected population (0) are consistent with the RP.

3.2.3 Attachments The attachments affected by the Project mainly include enclosing walls, henhouses, piggeries, fruit trees, grape trees, cold/warm vegetable greenhouses, guard rooms and telegraph poles, etc. As compared to the RP, the attachments actually affected by the Project have varied (see Table 3-4).

Table 3-4 Comparison of planned vs. actual demolition of rural attachments

Type Goubangzi Majiahuang Total Planned 382 570 952 Enclosing Actual 568 33 601 wall (m) Difference 186 -537 -351 Planned 2434 280 2714 Henhouse Actual 1847.9 0 1847.9 (m2) Difference -586.1 -280 -866.1 Planned 693 2450 3143 Piggery Actual 1095.5 240 1335.5 (m2) Difference 402.5 -2210 -1807.5 Planned 294 770 1064 Fruit tree Actual 6666 16 6682 Difference 6372 -754 5618 Planned 4907 0 4907 Grape tree Actual 9793 0 9793 Difference 4886 0 4886 Cold Planned 2211 0 2211 greenhouse Actual 17261.5 0 17261.5 2 (m ) Difference 15050.5 0 15050.5 Warm Planned 13800 0 13800 greenhouse Actual 16022 0 16022 2 (m ) Difference 2222 0 2222 Planned 811 591 1402 Guard room Actual 1205.8 90 1295.8 (m2) Difference 394.8 -501 -106.2 Planned 13 4 17 Telegraph Actual 13 4 17 pole Difference 0 0 0

3.3 Resettlement policies and standards

3.3.1 Acquisition of collective land (1) Land compensation and resettlement policies Compensation and resettlement for acquisition of collective land is based mainly on the Land Administration Law of the PRC, the Measures of Liaoning Province for the Implementation of the Land Administration Law of the PRC (Bulletin No.16 of the Standing Committee of the Liaoning Provincial People’s Congress) and the Notice of the General Office of the Liaoning Provincial Government on the Implementation of the Standard for Area-based Composite Land Prices for Land Acquisition (LPG Office Fa [2010] No.2). The land acquired for the Project will be compensated for based on its former use. Compensation fees for land acquisition include land compensation fees, resettlement subsidies and compensation fees for ground attachments and young crops. It has been resolved at the village congress that the village collectives will withhold 20% of land compensation fees, and all resettlement subsidies will be paid to the affected households; compensation fees for ground attachments will belong to their proprietors. (2) Land compensation rates The compensation rate for acquisition of collective farmland is as follows: the composite resettlement subsidy is 30,000 yuan/mu, including a land compensation fee of 15,000 yuan/mu and a resettlement subsidy of 15,000 yuan/mu. The compensation rate for acquisition of collective land is 30,000 yuan/mu, consistent with the RP (see Table 3-5).

Table 3-5 Comparison of planned vs. actual compensation rates for land acquisition Land compensation Project Type of land Area fees Planned Actual ADB-financed Goubangzi Town Farmland Tier-1 30,000 30,000 Urban Infrastructure Project Housing site Tier-1 30,000 30,000

(3) Resettlement In Goubangzi and Majiahuang (Wangtun) Villages where land acquisition has been completed, the mode of resettlement will be cash compensation through discussion at the village congress and in consultation with the affected households, where 20% of land compensation fees will be retained by the village collectives, and the affected people will receive 80% of land compensation fees + resettlement subsidies + young crop compensation fees. The affected households will receive a resettlement subsidy and a land compensation fee totaling 27,000 yuan/mu, and the village collectives will withhold a land compensation fee of 3,000 yuan/mu, which will be used for public benefit programs. No land reallocation will be made in each village.

Figure 3-1 Details of compensation fees received by households affected by land acquisition in Banggouzi Village

3.3.2 House demolition (1) Resettlement policies for house demolition Resettlement for house demolition is based mainly on the Land Administration Law of the PRC, the Measures of Liaoning Province for the Implementation of the Land Administration Law of the PRC (Bulletin No.16 of the Standing Committee of the Liaoning Provincial People’s Congress), the Rules for the Administration and Implementation of Urban House Demolition of Beizhen Municipality (BTG Gui [2003] No.1), and the benchmark price levels for urban house demolition and compensation rates for attachments of Goubangzi Town.  Residential houses The policy of cash compensation or property swap applies to rural residential houses demolished for the Project. If any affected person selects cash compensation, it will also receive a compensation fee for its housing site according to the compensation rate. In case of property swap, the Town PMO will offer new housing of the same area as the proprietary housing area without making up the price difference, and any excess of area will be settled at the market price of commercial housing. The resettlement site is Xinxinyuan Community (forward delivery housing), which is less than 1 km away from the project area. By the end of July 2010, the main part of the resettlement community had been largely completed. The resettlement housing will be available to the displaced households in the second half of 2010.

Figure 3-2 Storied building under construction in resettlement community

 Non-residential houses The mode of cash compensation applies to demolition of non-residential houses. Compensation fees for house demolition include house compensation fees, moving subsidies and other costs, etc. (2) Compensation rates for house demolition  Residential houses The rural residential houses demolished for the Project will be compensated for at replacement cost: 1,270-1,340 yuan/m2 for slab houses. During project implementation, the affected households have proposed in consultation with the Town PMO that an additional area of 10 m2 per household should be offered for free, and no moving and transition subsidies will be paid. The market price of the housing of the resettlement community is 2,000 yuan/m2. As compared to the rate defined in the RP, this compensation rate is higher. The compensation rate for residential houses is shown in Table 3-6.

Table 3-6 Comparison of planned vs. actual compensation rates for demolition of rural residential houses

Compensation rate (yuan/unit) Item Unit Planned Actual House Slab house M2 1,200 1,270-1,340 compensation

 Non-residential houses The business premises demolished will be compensated for at replacement cost: 2,343 yuan/m2 for premises and 1,500,000 yuan for facilities (see Table 3-7). As compared to the rates defined in the RP, these compensation rates for non-residential houses are higher.

Table 3-7 Comparison of planned vs. actual compensation rates for demolition of non-residential houses Compensation rate (yuan/unit) Item Unit Planned Actual House compensation m2 2,000 2,343 Compensation for attachments 200,000 1,500,000

(3) Resettlement

13  Residential houses According to the resettlement policies, the displaced households may select cash compensation or property swap. In the Project, all the 16 affected people have selected property swap, as shown in Table 3-8.

Table 3-8 Resettlement of households affected by house demolition Mode of resettlement Village Total (households) Cash compensation Property swap Goubangzi 0 16 16

According to the house demolition compensation and resettlement agreement, most of the displaced households have selected property swap. Although Xinxinyuan Community is forward delivery housing, most of them have selected this community, because it is close to the urban area, convenient in traffic and will be available in the second half of 2010.

3.3.3 Attachments (1) Compensation rates The compensation rates for attachments are based on the Rules for the Administration and Implementation of Urban House Demolition of Beizhen Municipality, and the benchmark price levels for urban house demolition and compensation rates for attachments of Goubangzi Town, as shown in Table 3-9. The compensation rates are consistent with those defined in the RP.

Table 3-9 Comparison of planned vs. actual compensation rates for ground attachments

Compensation rate (yuan/unit) Item Unit Planned Planned Enclosing wall M 50 50 Henhouse M2 80 80 Piggery M2 80 80 Fruit tree / 10 10 Attachments Grape tree / 30 30 Cold greenhouse M2 30 30 Warm greenhouse M2 40 40 guard room M2 400 400

(2) Resettlement The mode of cash compensation applies to affected attachments. 3.4 Funds and disbursement By the end of July 2010, compensation fees totaling 13,341,368 yuan had been paid for land acquisition, and house and attachment demolition under the Project.

3.4.1 Compensation fees for acquisition of collective land By the end of July 2010, land compensation fees and resettlement subsidies totaling 7,254,071 yuan had been paid. The land compensation fees have been disbursed to the village collectives. It has been resolved at the village congress that 20% will be withheld by the village collectives to develop public benefit programs, and 80% of the land compensation fees plus the resettlement subsidies will be paid to the affected households.

14 3.4.2 Compensation fees for house and attachment demolition By the end of July 2010, compensation fees for house and attachment demolition totaling 6,087,351 yuan had been paid directly to the affected people.

3.4.3 Fund disbursement (1) Disbursement of compensation fees for collective land The Town Land and Resources Station will disburse compensation fees to the Town Finance Station, which will pay compensation fees to the affected village collectives. Under the supervision of the Town PMO, each village collective will hold a village congress to generate the allocation plan of compensation fees—20%of land compensation fees will be retained by the village collective to develop public benefit programs, 80% of land compensation fees and all resettlement subsidies will be paid to the affected households. A sound compensation fee management system has been established, where compensation fees will be accounted for separately and used for the intended purpose. The affected village collective organizations have prepared a land acquisition register and detailed income and expenditure accounts, which are open to villagers’ supervision. (2) Disbursement of compensation fees for houses and attachments The Town Demolition and Resettlement Management Office had paid all compensation fees directly to the affected collectives or persons by July 30, 2010 according to the house demolition compensation and resettlement agreement. 3.5 Evaluation Based on the fieldwork, the external monitoring agency thinks that by the end of June 2010, the land acquisition and resettlement work of the Project had been conducted according to ADB’s requirements, the compensation policies and rates complied with the RP, the fund disbursement procedures were transparent and efficient, and compensation fees had been paid to the affected people timely and in full.

15 4 Resettlement baseline survey Goubangzi Town is located in the south of Beizhen City, connected to Jinzhou in the west, Panjin in the south, Shenyang in the east and Fuxin in the north, enjoying convenient traffic and advantaged geographic location. The town has a total area of 56 km2, an arable area of 3,087.5 ha, and a resident population of about 80,000, in which rural population is about 29,000. It governs 10 administrative villages and 6 communities. The ethnic groups include Han, Manchu, Hui, Miao, Mongolian, Korean, Xibo, Zhuang, Wa and Daur, in which Manchu people account for 45% of total population. In 2009, the town’s gross output value of enterprises was 641.619 million yuan, industrial gross output value 570.448 million yuan and agricultural gross output value 35.919 million yuan. The town has a rural population of 28,162 and a total arable area of 2,779 ha. In 2009, farmers’ per capita net income attained 7,900 yuan. Generally, agricultural income accounts for a low proportion in farmers’ income. 4.1 Survey of affected villages Goubangzi and Wangtun Villages affected by land acquisition and house demolition were surveyed, and the heads, Party branch secretaries and some villagers of the two villages were interviewed, covering the basic information of the affected villages (population, land, per capita net income, etc.), land acquisition and house demolition, disbursement of land compensation fees, development planning, and attitude to and suggestions for the Project.

4.1.1 Overview of Goubangzi Village, and land acquisition and house demolition impacts Goubangzi Village is located in Goubangzi Town, where most villagers live in communities. At the end of 2009, the village’s population was 4,226, including 2,016 men and 2,210 women; the village has an arable area of 2,703 mu, 0.64 mu per capita, used mainly to grow paddy rice, corn and sorghum, etc. The village has 528 business enterprises that employ 630 persons directly, whose sales revenue was 29 million yuan in 2009. The farmers mostly do business. In 2009, the village’s per capita net income was 8,247 yuan, higher than the other villages of Goubangzi Town and the average level of the town. 201.5 mu of collective land will be acquired, and rural residential houses of 1,128 m2 and premises of 257.8 m2 of one enterprise will be demolished. By the end of July 2010, land acquisition had been completed, and house demolition was not completed yet. According to the survey, the villagers knew about the Project several years ago. Since road water-logging is a serious problem in the village, the villagers generally support the Project. The belt park can improve the environment. Since agricultural income is low, the Project can increase farmers’ income. The village collective has withheld 20% of land compensation fees and will use them for public benefit programs to improve the villagers’ standard of living: 1) The existing land of the village will be rehabilitated, and residential buildings will be constructed for central resettlement; the rehabilitated land will be used to develop tertiary industries whose earnings will be shared among the villagers; 2) The vulnerable groups in the village will be supported; and 3) The villagers will be trained on labor skills by village enterprises.

4.1.2 Overview of Majiahuang (Wangtun) Village, and land acquisition and house demolition impacts Majiahuang Village has a population of 3,672, including 1,820 men and 1,817 women, and an arable area of 8,197.5 mu, 2.23 mu per capita, used mainly to grow

16 paddy rice, corn and sorghum, etc. The Goubangzi Rice and Oil Industrial Zone is located in the village, and hosts 21 rice processing plants and 140 individual businesses, employing 1,000 persons directly. In 2009, the industrial zone’s industrial output value was 148.769 million yuan and tax payment 3.54 million yuan, and the individual businesses’ sales revenue was 1.2 million yuan. In 2009, the village’s per capita net income was 7,450 yuan, lower than the town average. 42.7 mu of collective land will be acquired, affecting 43 households with 159 persons. By the end of July 2010, land acquisition had been completed. According to the survey, the villagers knew about the Project several years ago. Since the roads in the village are out of repair and have affected the trip of villagers and even the transport of farm products of some specialized breeding households, reducing the villagers’ income, the villagers support the Project generally. Since agricultural income is low, the Project will provide convenient traffic for the existing rice processing industry and further income the farmers’ income. The village collective has withheld 20% of land compensation fees and will use them for public benefit programs: 1) Adjust the existing planting structure, with focus on the development of vegetable cultivation; funds from superior authorities will be sought to help the farmers build plastic greenhouses and increase their income; 2) The public infrastructure of the village will be improved; and 3) The vulnerable groups will be supported. 4.2 Sampling survey of affected households

4.2.1 Households affected by land acquisition (1) House population 39 households were sampled randomly for door-to-door interview, accounting for 16% of all affected households (243). According to the survey, the 39 surveyed households have a total population of 153, including 66 women (43.1%), all being agricultural population. There are 98 laborers (64.1%), including 49 female laborers (32%); 7 persons are covered by minimum living security (4.6%); 21 are receiving school education (13.7%). See Appendix 7. (2) Household land contracting Before land acquisition, the total area of contracted land of the 39 surveyed households was 164.1 mu, and the per capita contracted land area of the agricultural population was 1.07 mu; the main crops are paddy rice, corn and sorghum; 44.36 mu of land will be acquired, 0.29 mu per capita; after land acquisition, total area of contracted land is 119.74 mu and the per capita contracted land area of the agricultural population is 0.78 mu. See Appendix 7. (3) Annual household income In 2009, the total annual income of the 39 surveyed households was 1,272,097 yuan, 3,2617 yuan per household and 8,314 yuan per capita. Of the gross annual income, agricultural income, sideline operation income, employment income and other income accounted for 16%, 5%, 77% and 2%, respectively, as shown in Figure 4-1. Agricultural income was 5,240 yuan per household, sideline operation income 1,780 yuan per household, employment income 24,862 yuan per household and other income 736 yuan per household. Agricultural income was 1,336 yuan per capita, sideline operation income 454 yuan per capita, employment income 6,337 yuan per capita and other income 188 yuan per capita. See Appendix 7.

17 2.26% 16.06% 5.46%

Agricultural income

sideline operation income employment income

other income

76.22%

Figure 4-1 Income composition

(4) Annual household expenditure In, 2009, the total annual expenditure of the 39 surveyed households was 616,847 yuan, 15,817 yuan per household and 4,032 yuan per capita. Productive expenses, water and electricity costs, communication fees, educational expenses, medical expenses, fuel costs, non-staple food expenses and other expenses accounted for 8%, 3%, 4%, 13%, 7%, 11%, 31% and 22%, respectively, as shown in Figure 4-2. Productive expenses were 1,343.2 yuan per household, water and electricity costs 496.5 yuan per household, communication fees 680.3 yuan per household, educational expenses 2,123.1 yuan per household, medical expenses 1,160.5 yuan per household, fuel costs 1,662.3 yuan per household, non-staple food expenses 4,904.6 yuan per household, and other expenses 3,446.2 yuan per household. Productive expenses were 342.4 yuan per capita, water and electricity costs 126.6 yuan per capita, communication fees 173.4 yuan per capita, educational expenses 541.2 yuan per capita, medical expenses 295.8 yuan per capita, fuel costs 423.7 yuan per capita, non-staple food expenses 1,250.2 yuan per capita, and other expenses 878.4 yuan per capita. See Appendix 7.

18 productive expenses

8% water and 13% 22% 3% electricity 4% costs communication fees

educational expenses

medical expenses

fuel costs

non-staple food expenses 11% 7% 32% other expenses

Figure 4-2 Expenditure composition

(5) Comparison of annual household income and expenditure In 2009, the total income of the 39 surveyed households was 1,272,079 yuan, total productive expenses 52,384 yuan, and total net income 1,219,695 yuan; per household net income was 31,274 yuan and per capita net income 7,972 yuan. See Appendix 7.

4.2.2 Households affected by house demolition 16 residential houses will be demolished for the Project, all being rural residential houses. 12 households with 39 persons were sampled during the survey, accounting for 75% of all affected households. In terms of house type, 8 households live in single-story houses and 4 live in slab houses; in terms of house structure, 25% of the houses are in masonry concrete structure and 75% in masonry timber structure; in terms of housing area, average housing area is 72.67M2 per household or 22.36 M2 per capita. These houses have an age of 14 to 18 years, 16 years on average (see Appendix 8). 4.3 Survey of affected enterprises One enterprise will be affected, which is an obsolete gas station with a total area of about 3,200 m2, including a business room of 160 m2, an underground oil tank of 160 m2, residence of 257.8 m2 and an enclosing wall of 24 m2, with the remaining being open space. The land of this gas station has been rented to the Beizhen Hualian Motorcade for parking. This motorcade is headquartered in Jinzhou and has a workforce of 6. The proprietor of the gas station is Xu XX, who lives in a 3-member family. His son is in university. The family’s annual income is 30,000 yuan and expenditure 15,000 yuan. The family’s standard of living is above average locally. Xu knew that the Project was about to be implemented 2 years ago, and knows much about the compensation policies of the Project. Xu said, as long as the compensation policies were carried through adequately, he would cooperate in house demolition actively; he plans to move to Goubangzi Village in the future (see Appendix 10). The person responsible and workers of the Beizhen Hualian Motorcade think that the Project will have a far-reaching influence on Goubangzi Town, and support the Project quite a lot. They would rent another open space to park their trucks.

19 4.4 Vulnerable groups 5 households with 7 persons out of the 295 affected households are covered by minimum living security. These 5 households are affected by land acquisition mainly. Their per capita arable area was 2 mu before land acquisition and will be 1.4 mu after land acquisition. Presently, the annual minimum living security benefit received by them is 1,300 yuan per capita. The village collectives have reduced or exempted their water costs and waste disposal fees. The external monitoring team suggests that more attention should be paid to these households during project implementation, and priority should be given to them in terms of employment and training.

20 5 Public participation, complaints and appeals 5.1 Public participation At every stage of land acquisition and resettlement, the Town PMO and implementing agencies attach great importance to the participation of and consultation with the displaced persons. At the preparation stage and before commencement of construction, the Town PMO has solicited suggestions and comments about the Project and resettlement from the affected village collectives, enterprises and displaced houses by means of FGD, interview and newspaper, etc., and announced the time of disclosure of the RP. In April 2009, the Town PMO disclosed resettlement information on the Project and the time of disclosure of the RP on local media, and solicited comments from the public extensively (see Figure 6-1).

Figure 6-1 Resettlement announcement

In September 2009, the Town PMO, Majiahuang Village and Goubangzi Village committees held a villager FGD to discuss road construction, land acquisition and house demolition.

Figure 6-2 Minutes of meeting held in Majiahuang Village

In March 2010, the Town PMO held a FGD of village and town level leaders again to introduce the range and compensation rates of land acquisition and house demolition, establish a mechanism of compensation disbursement, and communicate project information to the affected households through the village committees.

Table 6-1 Summary of public participation Mode of No. Time Activities Evaluation participation 1 Publication Apr. 27, 1) Disclose the resettlement information of the Information is of 2009 Project; disclosed timely resettlement 2) Disclose means of public supervision and and properly information participation; on mass 3) Disclose the person responsible of the Town media PMO and its contact information 2 Public Sep. 2009 1) Introduce the resettlement information of the Extensive public is participation Project involved, and FGD 2) Invite the affected people to take an active part public participation in the Project by giving suggestions is effective 3 FGD with Mar. 2010 1) Introduce the range and compensation rates of The mechanism is village and land acquisition and house demolition; rational, and town level 2) Establish a mechanism of compensation information leaders disbursement; communication is 3) Communicate project information to the affected smooth households through the village committees

During the fieldwork, the M&E team learned the affected people’s awareness of the Project, and suggestions for the Project, look for any unidentified risk of the Project, and proposed measures and suggestions on the basis of communication and negotiation with all stakeholders by means of field investigation, FGD and in-depth interview (see Appendix 1). Although the Town PMO and implementing agencies have disclosed information on the Project and resettlement in many ways, the resettlement information booklet brochure had not been distributed by the end of July 2010.

5.2 Grievances and appeals A transparent and effective channel of grievances and appeals has been established in the RP, and communicated to the displaced persons by means of newspaper, FGD and the letter for displaced persons. The displaced persons know the channel of appeal when their rights are infringed on. The appeal hotline is 0416-6652650. No reporting or appeal by any displaced person has occurred to date.

22 6 Findings and suggestions 6.1 Findings (1) Implementation progress of the Project As at May 31, 2010, the Town PMO had paid great attention to resettlement and land acquisition, and done a lot of preparatory work. By the end of July 2010, the resettlement work of the Project had been started, with 244.26 mu of collective land acquired, accounting for 100% of total workload, and houses of 1128 M2 demolished, accounting for 90% of total workload. (2) Resettlement implementing agencies The resettlement organization has been established, the responsibilities and duties of all levels defined, the staff and equipment are rationally provided, and the staff has been trained. However, since the Project is the first ADB financed project in Goubangzi Town and the resettlement staff is implementing land acquisition and resettlement for an ADB financed project for the first time, though part of the resettlement staff has participated in the preparation of the Project, and has got a certain understanding of ADB’s safeguard policy and RAP, there are still some deficiencies in policy understanding and resettlement practice. The internal supervision mechanism is to be improved. Presently, internal supervision is implemented by the Goubangzi Town Government, and external monitoring is implemented by NRCR. (3) Compensation rates During project implementation, the compensation rates for collective land are consistent with those in the RP; the rate for rural residential houses is 1,270-1,340 yuan/m2, higher than that specified in the RP (1,200 yuan/m2); the compensation rate for business premises is 2,343 yuan/m2 for, higher than that specified in the RP (2,000 yuan/m2). (4) Income restoration measures Compensation fees for land acquisition have been paid to the affected collectives of Goubangzi and Majiahuang (Wangtun) Villages. It has been resolved at the village congress that 20% will be withheld by the village collectives, and 80% of the land compensation fees plus the resettlement subsidies and young crop compensation fees will be paid to the affected households. However, the livelihood restoration plans of the affected village collectives had not been started as at July 30, 2010. (5) House rebuilding As at July 30, 2010, the main part of the resettlement housing of the Project had been completed, and the supporting facilities were being constructed. The resettlement housing will be available to the affected households in the second half of 2010. (6) Information disclosure and public participation The resettlement information booklet had not been distributed by July 30, 2010. However, the Town PMO has disclosed such information to the public timely by means of newspaper, FGD, etc., and the public participation mechanism is sound. (7) Grievances and appeals The channel of grievances and appeals is smooth. The displaced persons know the channel of appeal when their rights are infringed on. (8) Baseline survey 1) Land-expropriated rural households: According to the survey of 39 affected households (16% of all affected households), the per capita net income of the 153 persons in these families was 7,972 yuan in 2009. For the 107 persons in 27 affected households in Goubangzi Village, per capita net income was 8,181 yuan in 2009, slightly lower than the village’s average (8,247 yuan per capita). For the 46 persons in the 12 affected households in Majiahuang Village, per capita net income was 7,485 yuan in 2009, slightly higher than the village’s average (7,450 yuan per

23 capita). 2) Displaced rural households According to the questionnaire survey of 12 households affected by house demolition (75% of all affected households), average housing area was 72.67 m2 per household or 22.36 m2 per capita before house demolition. 6.2 Suggestions (1) Approve the RP as soon as possible In early 2010, the Town PMO amended the RP based on ADB’s opinions, and submitted it to ADB. To ensure the progress of the Project, the external monitoring agency advises ADB to give a formal approval opinion as soon as possible. (2) Act strictly on the procedures of land acquisition and house demolition, and ensure that ADB’s policies are complied with The resettlement work of the Project has not been implemented. During implementation, the established procedures should be followed strictly, and issues arising from land acquisition and house demolition handled properly to protect the displaced persons’ lawful rights and interests. If a specialized agency is appointed to conduct land acquisition, house demolition and resettlement, “ensure that the RP approved by ADB is followed” should be added to the resettlement implementation contract. (3) Strengthen capacity building, and improve the internal management systems Improve the resettlement organization and strengthen its capacity building to ensure the successful conduct of the next stage of resettlement, and a detailed resettlement schedule for the next stage should be developed. The Town PMO, displacer, house demolition implementing agency, and village committees are advised to establish an internal monitoring mechanism to prepare statistics of and feed back information timely, and solve issues arising from resettlement implementation. Relevant materials should be kept properly during resettlement, and land acquisition and house demolition archives established. The Town PMO shall assign a dedicated person to file and control documents on land acquisition and house demolition timely, and provide basic information for the final acceptance, and M&E of the Project. (4) Improve the information disclosure system To ensure that the displaced persons fully understand the impacts, resettlement options, compensation rates, and appeal channel and mechanism of the Project, and protect their right to know, the Town PMO should assist the village committees in explaining relevant information to the displaced persons on the basis of issuing the resettlement information booklet timely, so that every displaced person can understand the information in the booklet, and be fully involved in the Project. In addition, the Town PMO should assist the village committees in disclosing the use of 20% of the land compensation fees, and ensuring that such fees are used through an open and transparent process. (5) Implement livelihood restoration measures, and pay attention to the skills training for the affected people For those affected by land acquisition who are to be resettled by cash compensation, the Town PMO is advised to give skills training to them in order that their livelihoods are restored as soon as possible to broaden their employment. (6) Vulnerable group support The Town PMO is advised to pay more attention to vulnerable households during land acquisition and house demolition, and give priority to the labor of such households in employment and training. (7) Accelerate the construction of resettlement housing In order to reduce the impacts of house demolition on the displaced persons, the Town PMO should urge the construction of the resettlement housing, so that they can move into the resettlement housing as soon as possible.

24 Appendixes

Appendix 1 Methods used in resettlement M&E (No.1)

Table 1 Schedule of methods used in the first round of M&E of the Project Method Time Location Scale Participants Remarks

1) Feasibility study and RP of the Project; 2) statistical 1. May-Jun. Town PMO, M&E indicators of Goubangzi Literature / / 2010 team Town (2010); 3) plans in the review project area; and 4) progress of the Project, etc.

51 affected households in 51 valid the 2 project Learn the population and questionnaires 2. villages were Town PMO, village composition, income and May 17-20, were Sampling selected, 34 in committees, M&E expenditure of the surveyed 2010 recovered, survey Goubangzi team households, and build a covering 143 Village and 17 in baseline survey database. persons Majiahuang Village Villager Learn the progress of the Project villages: May 17-20, representatives, Project, villagers’ attitude to 3. FGD Goubangzi and 2 times 2010 Town PMO, M&E the Project, and their Majiahuang team suggestions for the Project. 1) Director of Town Learn the village-level PMO; 2) Director socioeconomic profile, 1)Town PMO; 2) of Demolition and impacts of the Project on the 4. Key Demolition and Resettlement villages, how past similar May 17-20, informant Resettlement 4 men-times Management projects were implemented, 2010 interview Management Office; 3) Heads or potential issues of the Office; Party branch Project, and the secretaries of the 2 corresponding measures and project villages suggestions. Villager representatives, including: 1) 3 5. households whose Learn villagers’ needs and Affected In-depth guard rooms are willingness for the Project, May 17-20, households of interview 5 men-times affected; 2) 1 awareness of and level of 2010 the 2 project of household affected participation in the Project in villages villagers by house depth. demolition; and 3) 1 affected enterprise

25 Appendix 2 Minutes of Typical Interviews for Resettlement Monitoring

Time May 18, 2010

Location Goubangzi Village Committee Organized Goubangzi Village Committee by PMO, head and Party committee secretary of Goubangzi Village, Hohai Attendees University, representatives of the affected villagers.

Disbursement and mode of payment of land compensation fees, Subject village-level plan after land acquisition.

1) All the affected people welcome the Project; 2) Collective land compensation fees will be owned by the village collective, Main and the compensation fees for contracted land will be paid in full; topics and 3) villagers from Goubangzi have a will to participating in the planning of the results development caused by turning villagers into residents and reallocating land.

26 Time May 19, 2010 Location Wangtun Village Committee Organized Wangtun Village Committee by PMO, head and Party committee secretary of Goubangzi Village, Hohai Attendees University, representatives of the affected villagers. Disbursement and mode of payment of land compensation fees, Subject village-level plan after land acquisition. 1) All the affected people welcome the Project; 2) Collective land compensation fees will be owned by the village collective, and the compensation fees for contracted land will be paid in full; 3) Villagers from Wangtun have a will to participating in the planning of the development caused by turning villagers into residents and reallocating land.

Main topics and results

Time May 20, 2010 Location In the house of affected family Organized PMO by Attendees Hohai University、affected household、PMO Subject Resettlement baseline investigation 1)have an interview of family population situation; Main 2)fill the questionnaire of the family income and expenditure; topics and 3)have an interview about participation and suggestion in the land results acquisition and house demolition.

27 Time May 20, 2010

Location Management committee office of Goubangzi village Organized PMO by Attendees PMO、Hohai University、representatives of the affected villagers

Subject Resettlement baseline investigation

1)have an interview of family population situation; Main 2)fill the questionnaire of the family income and expenditure; topics and 3)have an interview about participation and suggestion in the land results acquisition and house demolition.

28 Appendix 3 Document for setting up the Project Management Office

29 Appendix 4 Document for setting up the Resettlement office

30 Appendix 5 Pre-examination Document for Land Using

31 Appendix 6 Approval Document for Land Using

32 Appendix 7 Details of Affected Family Baseline Investigation Table 2 Family Population Situation of the 39 Affected households Femal Villag Tota Wome Agricultura Labo Supporting/o Schoo Name e e l n l r ld l labor

Goubangzi village YZY 4 2 4 2 1 0 1 LZR 5 2 5 3 2 0 2 WYC 3 1 3 3 1 0 0 ZCX 4 2 4 2 1 0 0 HFZ 3 1 3 2 1 2 0 TSX 3 1 3 3 1 0 0

YHG 4 2 4 2 1 0 1 MXH 6 2 6 4 2 0 0 SZW 8 4 8 5 3 0 0 YYH 3 1 3 2 1 0 1 YB 7 3 7 3 2 0 2 PSH 5 2 5 3 1 0 0 GHW 2 1 2 2 1 0 1 JYK 3 1 3 2 1 0 1 WXL 4 2 4 2 1 0 0 LGA 2 1 2 2 1 0 0 CR 8 3 8 4 2 0 0 LXM 3 1 3 2 1 0 0 WDK 3 1 3 2 1 0 2 PHF 5 3 5 3 2 0 1 LDY 3 1 3 2 1 0 1 LW 2 1 2 2 1 1 0 NL 3 2 3 3 1 0 0 MC 3 1 3 2 1 0 0 WY 5 2 5 3 1 0 0 YSY 4 2 4 4 2 0 1 CQA 2 1 2 2 1 0 0 subtota

l 107 46 107 71 35 3 14

Majiahuang village CGC 4 2 4 2 1 0 0 WBC 5 2 5 3 1 0 0 WBL 4 1 4 2 1 0 0 LGH 6 3 6 3 2 0 0 LYH 5 2 5 3 2 0 1 ZD 6 2 6 4 2 0 2

LGA 2 1 2 1 1 1 0 MB 5 3 5 3 1 0 0 MBW 3 1 3 2 1 0 1 LWC 2 1 2 1 0 1 1 ZYF 2 1 2 1 1 2 0 HFJ 2 1 2 2 1 0 1 subtota

l 46 20 46 27 14 4 6 Total 153 66 153 98 49 7 20 33 Proportio n (%) / 43.1 100.0 64.1 32.0 4.6 13.1 Table 3 Baseline survey: Contracted and Acquisition Land Situation of the 39 Affected Families (mu) Contracted Acquisition Residual land after Village Name Impact of land land land acquisition（%） acquisition Goubangzi village YZY 2.4 0.94 39.20 1.46 LZR 3 1.09 36.27 1.91 WYC 2.1 1.18 55.98 0.92 ZCX 2.6 0.71 27.42 1.89 HFZ 1.9 0.94 49.52 0.96

TSX 2.1 1.25 59.32 0.85 YHG 2.6 1.41 54.14 1.19 MXH 3.8 2.48 65.16 1.32 SZW 5.2 2.78 53.39 2.42 YYH 2 0.62 30.93 1.38 YB 4.5 1.94 43.19 2.56 PSH 3.1 1.67 53.90 1.43 GHW 1.4 0.92 65.60 0.48 JYK 2 0.67 33.40 1.33 WXL 2.4 0.94 38.98 1.46 LGA 1.3 0.63 48.46 0.67 CR 5 1.87 37.42 3.13 LXM 2.1 1.47 70.03 0.63 WDK 1.9 1.33 69.98 0.57 PHF 2.8 0.62 21.98 2.18 LDY 2 0.37 18.46 1.63 LW 1.4 0.37 26.37 1.03 NL 2.1 0.49 23.44 1.61 MC 2.4 0.37 15.38 2.03 WY 3.6 0.62 17.09 2.98 YSY 3 0.49 16.41 2.51 CQA 1.4 0.34 24.15 1.06 Per capita 0.66 0.62 0.39 / Majiahuang village CGC 7.8 0.79 10.19 7.01 WBC 10.7 2.99 27.92 7.71 WBL 8.8 2.01 22.81 6.79 LGH 13.2 2.13 16.14 11.07 LYH 9.8 0.48 4.90 9.32 ZD 12.4 0.48 11.92 3.87 LGA 4.2 0.63 15.00 3.57 MB 8.6 0.63 7.33 7.97 MBW 7 1.87 26.78 5.13 LWC 3.6 1.87 52.08 1.73 ZYF 4 1.50 37.50 2.50 HFJ 3.9 0.49 12.62 3.41 Per capita 2.04 0.79 1.70 /

Total 164.10 44.36 27.03 119.74 Per household (mu/household) 4.21 1.14 / 3.07

34 Per capita (mu/person) 1.07 0.29 / 0.78 Table 4 Details of Family Income Baseline Investigation of 39 Affected Households Working Agricultural Sideline Other village Name temporarily Total income income income outside income G

village oubangzi YZY 4087 1424 29876 1285 36672 LZR 5098 2088 38504 0 45690 WYC 3065 1035 27098 2003 33202 ZCX 4103 1195 22156 0 27455 HFZ 3065 1235 0 2500 6801 TSX 3986 667 28661 0 33314 YHG 4087 1594 20875 0 26556 MXH 6120 2451 42313 3125 54009 SZW 9074 3388 49750 4000 66212 YYH 3865 1095 18156 0 23117 YB 7552 2889 40032 2300 52773 PSH 5309 1692 30594 1498 39093 GHW 2043 797 15438 18278 JYK 3265 1096 21156 1500 27018 WXL 4187 1695 23875 1400 31157 LGA 2143 897 16438 0 19478 CR 8374 2688 58750 0 69812 LXM 3765 995 24156 0 28917 WDK 3345 1095 22156 360 26956 PHF 5609 2092 37594 0 45295 LDY 3265 1395 20156 0 24817 LW 2243 897 1338 1500 5978 NL 3158 1293 22956 0 27408 MC 4019 1306 23057 0 28382 WY 5218 2302 36594 0 44115 YSY 4007 1604 31875 850 38336 CQA 2033 890 14438 0 17360 Per capita 1085 391 6710 209 8394 M

ajiahuang village CGC 4186 1793 30979 0 36959 WBC 5109 2092 38594 0 45795 WBL 4115 1684 28076 0 33875 LGH 12231 3791 29313 0 45335 LYH 10809 2500 23594 0 36903 ZD 13131 4391 24313 0 41835

LGA 6704 1500 1000 1900 11104 MB 10000 3672 37593 0 51266 MBW 9800 3595 20156 0 33552 LWC 4043 800 2004 1500 8347 ZYF 5986 1000 0 3000 9986 HFJ 2143 790 15990 0 18923 Per capita (yuan/person) 1919 600 5470 139 8128 Total 204345 69407 969605 28721 1272079 Per household 5240 1780 24862 736 32617 (yuan/household) 35 Per capita 1336 454 6337 188 8314 (yuan/person)

36 Table 5 Details of Family Expenditure Baseline Investigation of 39 Affected Households Village Productive Name Water & electricity Communication Tuition Medical treatment Fuel Non-staple food Others Total expense

Goubangzi village YZY 792 510 700 3000 400 2000 6000 4000 17402 LZR 900 630 1000 7000 700 2200 7200 5000 24630 WYC 700 360 500 0 1000 1400 4000 3000 10960 ZCX 850 440 700 0 2000 1500 5500 4000 14990 HFZ 610 438 300 0 4000 1300 4100 2000 12748 TSX 640 395 600 0 500 900 2500 3500 9035

YHG 858 500 800 2400 1400 1890 5600 2000 15448 MXH 1054 750 1000 0 500 2500 8000 6000 19804 SZW 1750 1020 1300 0 5000 3400 10000 5000 27470 YYH 650 420 500 3000 300 1350 4200 5000 15420 YB 1398 850 1200 12000 200 3000 6790 6000 31438 PSH 1135 630 1300 0 300 2200 0 4500 10065 GHW 500 220 400 2800 890 900 2500 3000 11210 JYK 680 390 500 2000 700 1368 3900 3000 12538 WXL 800 500 1000 0 1200 1800 6000 2400 13700 LGA 410 250 300 0 600 950 3000 2000 7510 CR 1582 1000 1300 0 3000 3500 9000 5000 24382 LXM 708 360 490 0 2000 1340 5000 2000 11898 WDK 630 389 480 15000 350 1280 3000 2700 23829 PHF 910 630 800 3000 2000 2200 6000 4300 19840 LDY 620 380 500 8000 200 1380 3200 2900 17180 LW 480 240 230 0 830 500 2900 800 5980 NL 700 380 700 0 1500 1500 4000 3000 11780 MC 800 400 700 0 400 1200 3890 2800 10190 WY 1200 610 700 0 300 2400 5000 4500 14710

37 YSY 1000 510 600 3000 3000 1700 6000 3600 19410 CQA 470 230 800 0 280 1000 3000 1800 7580 Per capita 213.3 125.5 181.3 572.0 313.6 436.1 1217.6 876.6 3936.0 Majiahuang village CGC 2240 500 600 0 2000 1620 5800 3700 16460 WBC 3498 650 750 0 800 2000 7000 5000 19698 WBL 2880 500 650 0 1300 1500 3400 4000 14230 LGH 3890 760 830 0 300 2500 8500 5000 21780 LYH 3104 673 900 3200 400 1800 7000 4100 21177 ZD 4000 770 800 9000 260 2400 7000 5500 29730

LGA 1200 220 300 0 1000 800 2800 1500 7820 MB 2750 640 650 5000 400 1900 7300 4500 23140 MBW 2200 380 450 2100 500 1200 4400 3000 14230 LWC 1188 260 300 0 3500 850 2000 1000 9098 ZYF 1320 310 200 0 800 700 2000 900 6230 HFJ 1287 270 700 2300 450 900 3800 2400 12107 Per capita 643 129 155 470 255 395 1326 883 4254 Total 52384 19365 26530 82800 45260 64828 191280 134400 616847 Per household （ yuan/house 15816. hold） 1343.2 496.5 680.3 2123.1 1160.5 1662.3 4904.6 3446.2 6 Per capita (yuan/person ) 342.4 126.6 173.4 541.2 295.8 423.7 1250.2 878.4 4031.7 Note：The productive expense includes the seed, pesticide, fertilizer and machine expenses.

38 Table 6 Family Net Income Baseline Investigation of the 39 Affected Households Productive Per capita net village name Total income Net income expense income

Goubangzi village YZY 36672 792 35880 8970 LZR 45690 900 44790 8958 WYC 33202 700 32502 10834 ZCX 27455 850 26605 6651 HFZ 6801 610 6191 2064 TSX 33314 640 32674 10891

YHG 26556 858 25698 6424 MXH 54009 1054 52955 8826 SZW 66212 1750 64462 8058 YYH 23117 650 22467 7489 YB 52773 1398 51375 7339 PSH 39093 1135 37958 7592 GHW 18278 500 17778 8889 JYK 27018 680 26338 8779 WXL 31157 800 30357 7589 LGA 19478 410 19068 9534 CR 69812 1582 68230 8529 LXM 28917 708 28209 9403 WDK 26956 630 26326 8775 PHF 45295 910 44385 8877 LDY 24817 620 24197 8066 LW 5978 480 5498 2749 NL 27408 700 26708 8903 MC 28382 800 27582 9194 WY 44115 1200 42915 8583 YSY 38336 1000 37336 9334 CQA 17360 470 16890 8445 Per capita 8394 213 8181 / Majiahuang village CGC 36959 2240 34719 8680 WBC 45795 3498 42297 8459 WBL 33875 2880 30995 7749 LGH 45335 3890 41445 6908 LYH 36903 3104 33799 6760 ZD 41835 4000 37835 6306

LGA 11104 1200 9904 4952 MB 51266 2750 48516 9703 MBW 33552 2200 31352 10451 LWC 8347 1188 7159 3580 ZYF 9986 1320 8666 4333 HFJ 18923 1287 17636 8818 Per capita 8128 643 7485 / Total 1272079 52384 1219695 7972 Per household （yuan/household） 32617 1343 31274 /

39 Appendix 8 Baseline Investigation Details of Family Houses Affected by Demolition Table 7 Housing Condition Baseline Investigation of 12 Households Affected by Demolition Family Building Building Housing area Completed years Name Population types structure （M2）（year） LHP 2 bungalow brick 64 17 YBS 2 bungalow brick 64 17 HYS 4 bungalow brick 64 18 JCL 3 bungalow brick 64 16 LDS 4 bungalow brick 64 17 floor brick-concret 80 WGF 3 rooms e 14 YGE 2 bungalow brick 88 17 floor brick-concret 96 WSH 5 rooms e 14 XYQ 4 bungalow brick 64 17 floor brick-concret 64 SYL 3 rooms e 14 floor brick-concret 64 LSH 3 rooms e 14 LXC 4 bungalow brick 96 17 Total 39 / / 872 / Per househ old 3.25 / / 72.67 16 Per capita / / / 22.36 /

40 Appendix 9 Minutes of Affected Enterprises Interview

Time May 18, 2010

Location Abandon gas station

Organized PMO by

Attendees Hohai University、PMO、enterprisers

Awareness of the land acquisition information、land acquisition area of the Subject affected enterprise 、production and operation of the enterprise

1) Mr Wang, the enterpriser, welcome the Project; Main 2)currently, the affected enterprise obtains the rental income by leasing to a topics and distribution company; results 3)after the house demolition, Mr Wang will buy another apartment.

41 Appendix 10 Project and resettlement events Date Event Jun. 4, 2008 The Goubangzi Town Government, Beizhen Municipality established the Town Project Leading Group. Dec. 15, 2008 Land pre-approval The Town PMO published a relocation announcement on local Apr. 27, 2009 media. The land acquisition and house demolition leading group and Aug. 15, 2009 implementing agencies of the Project were established. Reply of the Liaoning Provincial Government on land acquisition of Feb. 28, 2010 the Project The Liaoning Provincial Urban and Rural Construction Planning Mar. 31, 2010 Research Institute and the Town PMO revised and finalized the RP jointly. NRCR conducted the first round of external resettlement May 17-20, 2010 monitoring of the implementation of resettlement of the Project October, 2010 NRCR submitted the External Independent M&E Report (No.1).