Resettlement Plan

December 2010

PRC: Beibu Gulf Cities Development Project

Fangchenggang City Maoling WWTP and Sewerage Network Project (Phase I)

Prepared by City Fangcheng Urban Construction & Investment Co., Ltd. with assistance of Beijing Enrimu Science & Technology Consulting Co., Ltd. for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 10 December 2010) Currency unit – Yuan Renminbi (CNY) CNY1.00 = $0.1500 $1.00 = CNY6.6630

ABBREVIATIONS ADB – Asian Development Bank AFs – Affected Families AHs – Affected Households APs – Affected Persons BESTCCL – Beijing Enrimu Science &Technology Co., Ltd. DI – Design Institute BP – Bank Policies DMS – Detailed Measurement Survey EA – Executing Agency F – Females – Fangchenggang City Fangcheng District FCFDUCICL Urban Construction and Investment Co., Ltd. FDG – Fangcheng District Government – Fangchenggang House Demolishment FHDAO Administration Office FLRB – Fangchenggang Land Resources Bureau FMG – Fangchenggang Municipal Government FPMO – Fangchenggang Project Management Office FSR – Feasibility Study Report GDP – Gross Domestic Product GZAR – Guangxi Zhuang Autonomous Region HDAO – House Demolishment Administration Office HHs – Households IA – Implementing Agency IMA – Independent Monitoring Agency LA – Land Acquisition LAR – Land Acquisition and Resettlement LRB – Land Resources Bureau M – Males M&E – Monitoring and Evaluation MLG – Minimum Living Guarantee OP – Operational Procedures PLG – Project Leading Group PMO – Project Management Office PPTA – Project Preparatory Technical Assistance PRC – People’s Republic of RIB – Resettlement Information Booklet RO – Resettlement Office ROW – Right of Way RP – Resettlement Plan S&T – Science & Technology ToR – Terms of Reference US$ – United States Dollar VCs – Village Committees WF – Women’s Federation

2 WEIGHTS AND MEASURES ha – hectare km – kilometer Km2 – Square kilometer m – meter m2 – square meter mu – Chinese area measure for land 1mu = 1/15 ha (1 ha = 15 mu)

NOTE (i) In this report, "$" refers to US dollars.

This 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.

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.

3

Guangxi Beibu Gulf Cities Development Project

Fangchenggang City Maoling WWTP and Sewerage Network Project (Phase I)

Full Resettlement Plan

Fangchenggang City Fangcheng District Urban Construction & Investment Co., Ltd.

Prepared with Assistance of

Beijing Enrimu Science & Technology Consulting Co., Ltd.

20 December, 2010

4

ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN (English Translation of the signed Endorsement Letter)

The Fangchenggang City Fangcheng District Urban Construction and Investment Co., Ltd. (FCFDUCICL), the implementation agency (IA), together with the assistance of the Beijing Enrimu Science & Technology Consulting Co., Ltd. (BESTCCL) has prepared this full Resettlement Plan (RP) for the Fangchenggang City Maoling WWTP and Sewerage Network Project (Phase I) under Guangxi Beibu Gulf Cities Development Project, which is under application for a loan from the Asian Development Bank (ADB).

The RP fully complies with requirements of the relevant laws, regulations and policies of People’s Republic of China, Guangxi Zhuang Autonomous Region and Fangchenggang Municipal Government as well as complies with ADB’s Safeguard Policy Statement 2009.

This resettlement plan is based on the feasibility study report (FSR) and measurement and socioeconomic surveys and Fangchenggang City Project Management Office hereby confirms the content of this RP and will guarantee the land acquisition and resettlement and compensation budget being provided according to the provisions of aforesaid plan.

This RP will be revised and approved by ADB before its implementation when the detailed design is completed.

Thanks for all your support and help to Guangxi Beibu Gulf Cities Development Project.

Xi Yang Vice Mayor of Fangchenggang City

29 December 2010

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6 TABLE OF CONTENT

ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN ...... 5 LIST OF ACRONYMS AND MEASURES ...... 9 EXECUTIVE SUMMARY ...... 10

I. INTRODUCTION ...... 13

1.1 Background ...... 13 1.2 Description of the Project ...... 13 1.3 LAR Impacts of the Project ...... 16

II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT ...... 19

2.1 Measures Taken to Avoid or Minimize LAR Impacts ...... 19 2.2 Methods of LAR Impact Assessment ...... 19 2.2.1Scope of LAR Impacts 19

III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION ..... 25

3.1 Socioeconomic Profile of Fangchenggang City ...... 25 3.2 Socioeconomic Profile of the Affected Area and APs ...... 25 3.2.1 Demographic Features of APs ...... 26 3.2.2 Residential Houses ...... 28 3.2.3 Land Use ...... 28 3.2.4 Financial Situation of Households ...... 28 3.2.5 Vulnerable Groups ...... 30 3.2.6 Gender Perspectives on Resettlement ...... 30

IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE ...... 32

4.1 Public Participation Strategy ...... 32 4.2 Methods and Measures of Public Participation ...... 32 4.3 Public Participation during RP Preparation ...... 32 4.4 Women’s Participation ...... 33 4.5 Information Disclosure ...... 33 4.5.1 Resettlement Information Brochure ...... 33 4.5.2 Distribution of the Resettlement Plan ...... 34 4.6 Public Participation Plan during RP Implementation ...... 34

V. APPEALS AND GRIEVANCE PROCEDURES ...... 37

VI. LEGAL FRAMEWORK AND POLICIES ...... 38

6.1 Applicable LAR Laws, Regulations and Policies ...... 38 6.1.1ADB’s Involuntary Resettlement Policies 38 6.2 Related Laws and Regulation of the PRC ...... 40 6.3.1 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration, issued by State Council, October 2004 40 6.3.2 PRC Land Administration Law ...... 41 6.3.3 Implementation Method of Guangxi Zhuang Autonomous Region for Land Administration Law ...... 42

7 6.4 Gaps between ADB and Chinese Policies ...... 43 6.5 Compensation Criteria and Principles ...... 47 6.5.1 Entitlement ...... 47 6.5.2 Compensation Principles ...... 47 6.5.3 Compensation Rate ...... 47

VII. ENTITLEMENT MATRIX ...... 51

VIII RESETTLEMENT AND REHABILITATON PLAN ...... 58

8.1 Objectives and Principles of Resettlement Program ...... 58 8.2 Compensation and Rehabilitation Resettlement Plan ...... 58 8.2.1 Resettlement Options and Plan ...... 58 8.2.2 Rehabilitation Plan for Affected Households by Land Acquisition ...... 60 8.2.3 Employment Opportunities Generated by the Project ...... 65 8.2.4 Social Insurance ...... 66 8.2.5 Project Related Income Generation Opportunities ...... 67 8.2.6 Provision of Technical Training to the APs ...... 68 8.2.7 Rehabilitation Plan of Ground Attachments ...... 68 8.3 Special Concerns during Resettlement Process...... 69

IX. COST ESTIMATES ...... 71

9.1 Compensation and Resettlement Costs...... 71 9.1.1Annual Budget 72 9.2 Flow of Fund ...... 73

X. LAR IMPLEMENTATION SCHEDULE ...... 74

10 Principles ...... 74 10.1 LAR Implementation Schedule...... 74

XI. INSTITUTIONAL FRAMEWORK ...... 80

11.1 Project Resettlement Organizational Set-up...... 80 11.2 Responsibilities ...... 82 11.3 Institutional Capacity Strengthening ...... 84 11.3.1 Assessment of Institutional Capacity ...... 84 11.3.2 Institutional Capacity Building and Training ...... 84

XII. MONITORING, EVALUATION AND REPORTING ...... 86

12.1 Internal Monitoring ...... 86 12.2 External Monitoring and Evaluation ...... 87 12.2.1 Objectives and Requirements of M&E ...... 87 12.2.2 Methodology ...... 88 12.2.3 Major Tasks ...... 89 12.2.4 Reporting Requirements...... 89

APPENDIX 1: Resettlement Information Booklet ...... 90 APPENDIX 2: TOR for External Monitoring and Evaluation ...... 104

8 LIST OF ACRONYMS AND MEASURES

ADB - Asian Development Bank AFs - Affected Families AHs - Affected Households APs - Affected Persons BESTCCL - Beijing Enrimu Science &Technology Co., Ltd. DI - Design Institute BP - Bank Policies DMS - Detailed Measurement Survey EA - Executing Agency F - Females Fangchenggang City Fangcheng District Urban Construction FCFDUCICL - and Investment Co., Ltd. FDG Fangcheng District Government FHDAO - Fangchenggang House Demolishment Administration Office FLRB - Fangchenggang Land Resources Bureau FMG - Fangchenggang Municipal Government FPMO - Fangchenggang Project Management Office FSR - Feasibility Study Report GDP - Gross Domestic Product GZAR - Guangxi Zhuang Autonomous Region HDAO - House Demolishment Administration Office HHs - Households IA - Implementing Agency IMA - Independent Monitoring Agency LA - Land Acquisition LAR - Land Acquisition and Resettlement LRB - Land Resources Bureau M - Males M&E - Monitoring and Evaluation MLG - Minimum Living Guarantee OP - Operational Procedures PLG - Project Leading Group PMO - Project Management Office PPTA - Project Preparatory Technical Assistance PRC - People’s Republic of China RIB - Resettlement Information Booklet RO - Resettlement Office ROW - Right of Way RP - Resettlement Plan S&T - Science & Technology ToR - Terms of Reference US$ - United States Dollar VCs - Village Committees WF - Women’s Federation km2 - Square Kilometer % - Percentage mu - Chinese area measure for land, 1mu = 1/15 ha (1 ha = 15 mu) Chinese currency Yuan CNY - CNY 1 = 1/ 6.80 $US ($US 1 =CNY 6.80)

9 EXECUTIVE SUMMARY

1. The Fangchenggang Maoling WWTP and Sewerage Network Project (Phase I) is composed of newly built WWTP with 300,000 m3 /d wastewater treatment capacity, pumping station and sewerage network. The Project owner is Fangchenggang City Fangcheng District Urban Construction and Investment Co., Ltd. (FCFDUCICL).

2. The Project will mainly involve land acquisition and structure demolishment in Sha’ao Village of Maoling Township. A total of 100 mu of rural collective land will be acquired permanently, including 30 mu farmland, accounting for 30% of the total land acquisition. The permanent land acquisition will affect 30 households or 200 persons. Temporary land occupation will be 150 mu with 146 households or 627 APs to be affected.1 A total of 685 m2 of residential houses will be demolished, relocating 5 households or 28 persons. Associated auxiliaries, basic infrastructures and special facilities will also be affected, such as toilets, fruit trees, chicken house, pig pen, well, electricity pole, rural road, satellite antenna, broadcasting lines, etc. The total numbers of the affected populations are rural. There is no vulnerable group identified in the Project area, including minority population.

3. In order to avoid or minimize land acquisition and resettlement, there was close consultation with the local officials and village committee (VC) during the preliminary and final Feasibility Study stages for the optimal and proper engineering schemes of the Project.

4. The compensation of the permanent land acquisition is based on the Land Administration Law of PRC, amended in 2004, Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004, Urban House Demolishment Management Regulations of PRC; GZAR “Land Administration Law”, GZAR Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC; Notice of Compensation and Resettlement Method for Land Acquisition and Resettlement of Four Lines and Four Areas of Fangchenggang City, 2009, and Unified Standard of Annual Output Value issued by the People's Government of Fangchenggang City, which has been carried out since 1st January, 2010. The specific rate for permanent land acquisition is CNY 17,728/mu for permanent land acquisition; the specific rates for temporary land occupation are CNY 746/mu for paddy land, CNY 3,173/mu for vegetable land, CNY 700/mu for dryland, CNY 4,481/mu for fish pond, and CNY 1,242/mu for wood land; and the specific rates for structure demolition are CNY 600/m2 for brick-concrete houses, CNY 500/m2 for brick-wood house, and CNY 240/m2 for simple houses. In addition, relocation subsidies and temporary transit allowance are CNY 8/m2 and CNY 4,000/person respectively. The RP was prepared to comply with Safeguard Policy Statement (2009). Based on the consultations with local governments and those affected, and general practice in Fangchenggang City, the resettlement principles established for the Project are: (i) land acquisition and involuntary resettlement should be avoided or minimized where feasible by developing and comparing a series of design alternatives; (ii) compensation and entitlements provided must be adequate to allow those affected to at least maintain their pre-project standard of living, with the prospect of improvement; (iii) land temporarily occupied and the period for disruption are to be kept to a minimum; (iv) all the people affected, legal and illegal, are to be taken into consideration and accounted for; (v) resettlement plan should be prepared and implemented in accordance with state land rehabilitation policy, national economic and social development plans; (vi) all those affected will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans, and project timing; (vii) resettlement

1 ADB’s Safeguard Policy Statement (2009) trigger for involuntary resettlement changed the terminology of "affected persons" to "displaced persons" which are defined as persons who are physically and/or economically displaced as a result of involuntary acquisition of land or involuntary restrictions on land use or on access to legally designated parks and protected areas. In the PRC, although the resettlement plans maintain the original terminology of “affected persons”, the definition is equivalent to ADB's definition of “displaced persons”.

10 plan should be coordinated with such things as regional development, economic development and environmental protection; and (viii) practical and feasible measures should be formulated to restore the affected items; (ix) a preferential policy and assistance will be provided to vulnerable groups in such things as employment; and (x) close monitoring and timely actions will be carried out to identify and resolve any problems.

5. The people affected have been notified about the key elements of the RP. The key elements of the RP have been notified to the affected HHs include the project information, LAR impacts, laws, regulations and compensation, livelihood and income rehabilitation plan, and implementation schedule. During the “process of this notification” through surveys and consultation meetings, the majority of the affected households request that if their land has to acquired and structures have to be demolished, they request to get fair and timely compensation, employment opportunities, and children’s education. The APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them as their farmland is affected by high-salt sea water, which severely affected agricultural production. They are not willing to engage in agricultural production any more but hope to get the cash compensation and future employment. The affected households would like to use compensation payment to do some businesses or get some training to be employed in enterprises and institutions and no longer engaging in agricultural farming any more. For those who will lose their houses, they expressed that they would use the compensation payment to rebuild structures in the same village. All of these concerned raised have been incorporated in the planning and implementation of resettlement program, and relevant mitigation measures have been formulated and will be implemented during the Project implementation phase. The resettlement information booklet will be distributed to affected community and villages and households before 15 December 2010. The RP approved by Fangchenggang City Government will be redistributed to village committees before 15 December 2010 to any one wishing to consult the document at the village offices. At the same time, the RP will be posted on the ADB website. The RP will be updated based on detailed measurement survey (DMS) and will be disclosed to APs and submitted to ADB for review and approval. The Fangchenggang PMO and FCFDUCICL will be responsible for supervising implementation, continuing public consultation, monitoring progress and responding to grievances. The grievance address procedures are well established and explanations are included in the RP and resettlement information booklets.

6. For people losing land permanently, “cash” compensation will be provided to them to be used for tertiary industry development and the compensation will be based on full replacement value. Similarly, cash compensation for structures and ground attachments will also be on replacement value with no depreciation. The households that have to relocate will receive “cash” or “cash plus reconstruction house land” within the same village and also they will receive a relocation allowance in cash. The PMO, IA, RO and local government will provide necessary assistance during LAR implementation, such as allocation of reconstruction house land, construction of new houses and relocation. The measures for economic rehabilitation include: (i) provision of 1,060 person-years of employment opportunities to the local community people, including the APs in labor force during the Project construction and 57 public welfare job positions during operational phases; (ii) development of tertiary industry (such as clothing retails, grocery store, transportation, hairdressing salon, dry cleaning, food service, and tourism business); (iii) provision of social insurance, with 30% contribution from the local government and 70% contribution from rural collectives and farmers (The land lost farmers pay 20% based on the 40% of the average wage of the urban workers in last year); (iv) annual employment opportunities generated induced by the Project and related urban development projects. The FMG will coordinate with relevant departments, including the owners of the job positions, labor and social security bureau and district government to arrange the APs to be employed for these job positions; and (v) provision of technical training to 456 APs in labor force to be affected by permanent and temporary land occupation to increase their skills to be employed in institutions,

11 enterprises and businesses. 7. For the people who will lose their land temporarily, cash compensation will be paid to the APs for the standing crops. The land recovery cost which is included in the engineering cost will be paid to the contractors to restore the land to its original condition and keep the same quality as before by the contractors. The Project construction will generate 1,060 person-years (or 25,440 person-months or 3.18 million days) short-term employment opportunities. The APs will be given priority to be employed during the Project construction period with income earnings over CNY 1,500 per month.

8. For residential houses to be demolished, cash plus provision of reconstruction house plot for self-construction by the APs will be adopted for this project. The households that have to be relocated will also receive a relocation allowance and relocation transit allowance. Compensation for ground attachments will be paid to the affected owners.

9. The cost estimate for land acquisition and resettlement is CNY 5.5863 million or US$ 821,500 at the prices of 2010, including compensation for permanent land acquisition, temporary land occupation, residential house demolishment, auxiliaries, relocation allowances, infrastructures and special facilities, relevant land taxes, M&E, other costs, and contingency. The land acquisition and resettlement activities will occur between April 2011 and April 2013. Construction will not take place before the APs are fully compensated and relocated, and all arrangements are made to commence the livelihood rehabilitation activities and the APs are registered for these. A community based grievance address procedures has been well established and explanations are included in the RPs and RIBs. Internal and external monitoring of the RP implementation will be conducted to ensure successful implementation of the RP. Monitoring methodologies are specified in the RP. Internal supervision and monitoring will be done by the IA to ensure compliance with the provisions of the RP. The PMO and IA have agreed to a set of supervision milestones with ADB, to ensure timely and effective implementation of resettlement activities. An independent monitoring agency under contract to the PMO will carry out external monitoring and evaluation. External monitoring reports will be prepared every 6 months during implementation and annually for 2 years after completion of resettlement. These reports will be submitted to ADB, the PMO and the IA, and will be uploaded to the ADB website.

12 I. INTRODUCTION

1.1 Background

10. The Fangchenggang Maoling WWTP and Sewerage Network Project (Phase I) is one Component of Guangxi Beibu Gulf Cities Development Project. Proposed Fangchenggang City Maoling WWTP and Sewerage Network Project (Phase I) lies in Sha’ao Village, the southwest of Maoling Industry Zone of Maoling Township. The Project site is located at the edge of Maoling Industry Zone and closely connects with the main road of this Zone. .

11. Fangchenggang is a new and emerging port city. It is approved as opening trade ports by the State Council in October 1983, and approved to be established as prefecture-level city in May 1993 by the State Council. Fangchenggang is located in the junction of China's southern coast and southwest hinterland, facing to Southeast Asia; it is one of the nearest port cities from mainland China to Europe, Africa, Central Asia and West Asia; it is the most convenient sea channel from southwest provinces to Southeast Asia and other places of the world. Fangchenggang City is located at East longitude 107° 28'~ 108° 36', North latitude 21° 36 '~ 22° 22', adjacent to in the East, Beibu Gulf in south, border with Vietnam in southwest and west and connecting with in the West; it is a major transportation hub along coast of Guangxi.

12. With the approval for the implementation of “GZAR Beibu Gulf Economic Zone Development Plan” by the State Council, in-depth implementation of the Western Development Strategy, China-ASEAN Free Trade Area and the "Two Corridors and One Ring" to speed up the pace of construction, strengthening China and the Greater Mekong Subregion Economic Cooperation, promoting the planning and construction of Beibu Gulf Economic Zone, all of these bring in unprecedented opportunities to Fangchenggang City. According to orientation of the planning, Fangchenggang City will be built as a base of newly industrialized and important gateway port city for iron and steel and energy, commercial trading logistics, processing and manufacturing, industry transfer undertaking and international coastal resorts.

13. Maoling Industry Zone of Fangcheng District is one of the 14 township enterprises demonstration areas in the Guangxi Zhuang Autonomous Region (GZAR) according to the GZAR Government document, Guizhengfa [2000] No. 21 “Notification of Nominating the Second Batch Township Enterprise Demonstration Area by GZAR Government”. With the development of Maoling Industry Zone, there are continuously increased processing industry and trading enterprises as well as populations. The Industry Zone will generate a great number of living and industrial wastewater. The untreated wastewater is discharged directly into the natural water receiving body in large quantities, it will definitely cause the severe pollution to the local surface and ground water as well as impact the local environmental and ecological balance, and threaten the health of the local residents. In order to protect the functions of the regional water basin, improve the living conditions of the residents as well as achieve economy sustainable development of the Industry Zone, it is necessary to construct industrial WWTP and sewerage network.

1.2 Description of the Project

14. The scope of the Project construction includes: i) newly built of a WWTP with capability of 30,000 m3/d; (ii) within the area of the short-term plan, 3 pumping stations will be built; (iii) pave d400-DN1200 wastewater pipeline along the district road. The average depth of such pipeline pavement is 4 m, and the total length is 24 km in the short-term. Figure 1-1a the location map of Fangchenggang City Fangcheng District Maoling Industrial Zone, and Figure 1-1b the detailed plan (land use plan) of Fangchenggang City Maoling WWTP and

13 Sewerage Network Project. The total Project investment is CNY 87.267 million, of which, US$ 7.3 million (CNY 49.64 million) will be financed by ADB loan, CNY 37.627 million from local financing. The Project will take a total of 24 months construction period.

Figure 1-1a: Location Map of Fangchenggang City Fangcheng District Maoling Industrial Zone

14

Figure 1-1b: Location Map of Maoling WWTP and Sewerage Network Project (Phase I)

15 1.3 LAR Impacts of the Project

15. Within the ROW of Fangchenggang City Maoling WWTP and Sewerage Network Project (Phase I), the land use includes dryland, wood land, and waste land. There is also a few structures. The scope of the Project impacts is mainly determined by the measurement survey on the basis of the FSR. The construction of the Project will involve permanent land acquisition, temporary land occupation, residential structure demolishment, auxiliaries, and basic infrastructures and special facilities.

16. In total, 100 mu collective-owned land will be acquired permanently for the Project, including 30 mu paddy land, 65 mu wood land and 5 mu waste land. Due to the permanent land acquisition, a total of 30 rural households or 200 rural populations will be affected.

17. The land to be acquired for the Project only accounts for 1.25% of the Maoling collective land area and 0.86% of total farmland area of Sha’ao Village. The impact of the land acquisition to the rural collective is small. However, due to the land loss, associated proportion of income will also be lost. Therefore, the income rehabilitation for the APs has been taken into consideration of the RP

18. In addition, for construction road access, worksite and construction materials storage, the Project will use 150 mu land temporarily.

19. Due to the land acquisition of the Project construction, 425 m2 residential houses will be demolished and resettled. All the demolished houses are brick-tile structures. In total, 5 rural households or 28 rural persons will be affects.

WWTP Site

20. In summary, the Fangchenggang Maoling WWTP and Sewerage Network Project (Phase I) will affect 30 households or 200 persons for permanent land acquisition and house demolition,146 households or 627 persons for temporary land occupation. There are no ethnic minorities and vulnerable group in the Project affected areas.

21. Based on the design of the Project construction map and the detailed measurement survey (DMS), the RP will be updated and submitted to ADB for review and approval.

1.4 Preparation of RP

22. In line with the ADB’s Safeguard Policy Statement (2009) and relevant laws, regulations and guidelines issued by the governments of People’s Republic of China, Guangxi Zhuang Autonomous Region and Fangchengggang City, the RP has been prepared by Beijing Enrimu Science & Technology Consulting Co., Ltd. (BESTCCL) on behalf of Fangchenggang City Fangcheng District Urban Construction and Investment Co., Ltd.. The RP will be reviewed and approved by Fangchenggang Municipal Government (FMG) and ADB.

16

23. The RP preparation is based on the following relevant project documents and legal documents, and the results of public participation and consultations.

(1) Design Basis:

 Feasibility Study Reports;  Fangchenggang City Economic and Social Development Statistical Communique in 2010;  Urban Development Master Plan of Fangchenggang City; and,  “Eleventh-Five Years Plan” of Fangchenggang City.

(2) Legal and Policy Basis

 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004;  Land Administration Law of the PRC, amended in 2004;  Implementation Regulation for Land Administration Law of PRC; December 1998;  Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93];  Temporary Regulations on Farmland Acquisition Tax of PRC, 2008;  GZAR “Land Administration Law”, 2001;  Temporary Regulations of Farmland Acquisition Tax, 2008;  Decree 15 of Guangxi Zhuang Autonomous Region People’s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region;  Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52];  Implementation Methods of GZAR farmland occupation tax [Guizhengfa (1987) 88 Hao 59];  Notice of Compensation and Resettlement Method for Land Acquisition and Resettlement of Four Lines and Four Areas Construction in Fangchenggang City, 2009;  Unified Standard of Annual Output Value issued by the People's Government of Fangchenggang City, 25th January, 2010;  ADB’s Involuntary Resettlement Policy, 1995;  Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998;  Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003;  OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006;  ADB’s Safeguard Policy Statement, June 2009; and,  ADB’s Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010).

(3) Public Participation and Community Consultation Activities

 Visits to the Project affected areas;  Consultation meetings with district government leaders, representatives, and APs between April and May 2010;  Sample socioeconomic survey of affected households in April and May 2010;  Land acquisition and resettlement survey information between April and May 2010;

17  Focus group discussion during ADB PPTA phase between April and May 2010; and,  Consultation workshops on environment and resettlement in May 2010.

24. The objectives of the RP are to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons2 in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups.

2 In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

18 II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT

2.1 Measures Taken to Avoid or Minimize LAR Impacts

25. To avoid or reduce land requisition and resettlement (LAR) impacts to the minimum, alternatives have been carefully reviewed and the optimal option has been adopted for the Fangchenggang City Maoling WWTP and Sewerage Network Project (Phase I). By taking into consideration of reducing land acquisition and resettlement impacts, and the life and property security of the residents in the Project Area, the mitigation measures to reduce the LAR impacts have been proposed: 1) strictly control the scope of land acquisition through coordinated surveying and mapping; and 2) avoid the intensive acquisition rural land, house demolishment, forest land and communication areas as much as possible. As a result, Option II has been selected as the option of the Project. Table 2-1 is the alternative comparison of “Option I” and “Option II” to minimize LAR impacts on collective-owned land within ROW.

Table 2-1: Alternatives to Reduce the Land Acquisition within ROW Option I: Before Measures Taken Option II: After Measures Taken Item House Land House Land AHs APs AHs APs Demolishment Acquisitio Demolishment Acquisitio (no.) (no.) 2 (no.) (no.) 2 (m ) n (mu) (m ) n (mu) WWTP 35 232 750 110 30 200 685 100 Total 35 232 750 110 30 200 685 100

2.2 Methods of LAR Impact Assessment

26. The physical identification of impacts are mainly relies on the statistical data obtained from the relevant government organizations, questionnaires, measurement survey, and discussion with APs during field investigation, site visits, meetings, individual interviews, etc.

27. Between April and May 2010, under the supervision of PMO and IA, the Fangcheng District Government and village committee (VC) carried out full-scale property and socioeconomic surveys to obtain basic data and prepare the RP. The survey is carried out to clarify the quantity and number of the properties affected by the Project. This has provided basic data for the scope of the Project impacts, the calculation of losses caused by LAR, socioeconomic impacts, planning on livelihood restoration of the APs, budget, and monitoring and evaluation.

28. The Project will affect land, house structures, auxiliaries, and basic infrastructures and special facilities. The quantity and category of the acquired lands and demolished structures were surveyed with the participation of the APs. Village committees and representatives of the villagers were consulted on compensation standards and resettlement plan for land acquisition and resettlement.

2.3 Scope of LAR Impacts

2.3.1 Summary of Land Acquisition

29. According to the identified impact, the scope of the land acquisition and resettlement of the Project includes permanent land acquisition, temporary land occupation, and residential structure and auxiliary demolishment. Some basic infrastructures and special facilities will also be affected. Table 2-2 provides the summary of the LAR impacts.

19 Table 2-2: Summary Land Acquisition and Resettlement Impacts Total AHs and Temporary Land Residential Structure Administrative Jurisdiction Permanent Land Acquisition APs by LA & Occupation Demolishment Demolishment Total Total Area Collectiv Total Townsh AHs Area of AHs AHs AHs District Village of e Land APs APs Area APs APs ip (No.) Land (No.) 2 (No.) (No.) Land (Mu) (m ) (Mu) (Mu) Fangche Maolin Sha’ao 100 100 30 200 150 146 627 685 30 200 ng g 5 28 Total 100 100 30 200 150 146 627 685 5 28 30 200 Note: 1 AHs and APs are affected by house demolishment will also be affected by permanent land acquisition.

20 2.3.2 LAR Impacts by Type of Losses

2.3.2.1 Permanent Land Acquisition

30. The Project will acquire 100 mu of collective-owned land. Table 2-3 provides the impacts of permanent land acquisition.

Table 2-3: Impacts of Permanent Land Acquisition Engineeri Area of Type of Land (Mu) ng Affected APs Land AHs (No.) Compone Village (No.) Acquisition Paddy Wood Waste nt (Mu) Land Land Land WWTP 30 200 96 30 61 5 Pump Sha’ao 0 0 4 0 4 0 Station Total 30 200 100 30 65 5

2.3.2.2 Temporary Land Occupation

31. The Fangchenggang City Maoling WWTP and Sewerage Network Project (Phase I) will temporarily use 150 mu lands. Table 2-4 provides the impacts of temporary land occupation. 32.

Table 2-4: Impacts of Temporary Land Occupation Temporar Type of Land (Mu) y Affected AHs APs Occupatio Padd Woo Veg. Drylan Fish Waste Village (No.) (No.) n of y d Land d Pond Land Collective Land Land Land (Mu) Sha’ao 146 627 150 30 4.5 15 3 90 7.5 Total 146 627 150 30 4.5 15 3 90 7.5

2.3.2.3 Residential House Demolishment

33. Within the ROW, the Project will demolish 685 m2 residential structures. Table 2-5 provides the area of residential structure. The average demolished area of each household is 137 m2, with smallest area of 100 m2 and the largest area of 210 m2. The affected households will be resettled in the same village and they will also be affected by permanent land acquisition.

Table 2-5: Demolishment of Residential Structures Affecte Name of Area of House Demolishment (m2) Affected d Affected APs Brick- Brick- Village Village Household Total Simple Tile Wood Group Heads Xianwo Song Qiyi 7 210 199 11 Xianwo Song Qikuan 6 160 151 9 Sha’ao Xiang Village Baobei 4 100 92 8 Zhirong Baobei Xiang Zhihua 5 105 91 14

21 Affecte Name of Area of House Demolishment (m2) Affected d Affected APs Brick- Brick- Village Village Household Total Simple Tile Wood Group Heads Xiang Baobei 6 110 101 9 Zhicheng Total 2 5 28 685 542 92 51

2.3.2.4 Ground Attachments

34. Some ground attachments will be affected also. The impacts of auxiliaries involve in the affected 30 HHs, and basic infrastructures and special facilities are the properties of the village or township. Table 2-6 are the impacts of affected ground attachments.

Table 2-6: Affected Ground Attachments Item Unit Quantity Auxiliaries Toilets No. 5 Fruit trees mu 8 Chicken house m2 10 Pig pen m2 35 Methane gas house m2 15 Drinking well No. 5 Basic Infrastructures and Special Facilities Electric poles No. 5 Rural road m2 260 Satellite dish HH 5 Broadcasting line m 1,000

2.3.2.5 Affected Households and Population

35. In summary, the Project will acquire part of land in Sha’ao Village of Fangcheng Township, Fangcheng District. It will affect 30 households, 200 persons for both permanent land acquisition and house demolition, 146 households and 627 persons for temporary land occupation. There is no ethnic minority in the Project affected areas. Table 2-7 is the summary of the affected households and populations.

22 Table 2-7: Summary of Affected Households and Populations (unit: No.) Total AHs Permanent Tempora Residential and APs by Land ry Land Structure Administrative Jurisdiction LA & Acquisitio Occupatio Demolishme Demolishme n n nt nt AH District/ APs APs Village AHs s APs AHs AHs APs City Townshi (no. 1 (no.) Group (no.) (no (no.) (no.) 1 (no.) (no.) p ) .) Fangchen Fangchen Sha’ao 62 g- 30 200 146 5 28 30 200 g /Maoling Village 7 Gang 62 TOTAL 30 200 146 5 28 30 200 7

2.4 Impacts on Vulnerable Groups

There are no vulnerable households affected by the Project construction.

2.5 Impact Analysis of Land Loss

36. The Project will lose 100 mu of permanent collective land permanently. Within the red line, partial collective land of Sha’ao Village will be acquired, and 1.25% of village collective land and 0.86% of village collective farmland will be lost, and the affected household will lose 19.56% of their farmland and associated income loss for the farmland would be 1.5 mu per household for the total affected 20 households by farmland), the impact is relatively significant. However, the average land income loss is average at 3.70% of their total family income or CNY 692 per household per year, and the income loss only share small proportion of their total family income, thus we could see that agriculture play less important role for their livelihood. The land loss analysis is based on the loss of agricultural land and associated income loss. Table 2-8 and Table 2-9 provides the impact analysis of land loss.

Table 2-8: Land Loss Analysis of Permanent Land Acquisition by Village Land Use by the Ratio of Land Before Land Acquisition Project Loss Remaini Of Village Total Total Of ng Total Total which AHs Total Farmlan Groups Land APs Land which Farmlan HHs Popu. Farmla (No. Area d area Area (No.) Area Farmlan d (mu) (No.) (No.) nd ) (%) (%) (mu) (mu) d (mu) (mu) 3,496.4 20 1.2 3,466.4 Sha’ao Village 456 2,210 8,017.95 30 100 30 0.86 5 0 5 5

3,496.4 20 1.2 Total 456 2,210 8,017.95 30 100 30 0.86 3,466.45 5 0 5

Table 2-9: Land Loss Impact Analysis on Households No. Item Sha’ao Village I Impacts 1 Affected Household 30 2 Affected Rural Population 200 4 Land Acquisition (mu) 100

23 No. Item Sha’ao Village 5 Per capita farmland for AHs before LA (mu) 7.67 6 Per capita farmland for AHs after LA (mu) 6.17 7 Percentage of land loss (%) 19.56% 8 Percentage of income loss (%) 3.70% II Income Resources 9 Agriculture Income (CNY) 5,307.00 -Percentage of Agriculture Income (%) 28.37%

10 Total Household Average Annual 16,614.00 Disposable Income III Percentage of Farmland Loss by AHs* 11 < 10% 8 12 > 10% - 30% 6 13 > 30% - 50% 2 14 > 50% - 70% 2 15 > 70% - 90% 1 16 > 90%-100% 1 17 100% 18 Total 20 IV Percentage of Farmland Loss by APs* 19 < 10% 53 20 > 10% -30% 40 21 > 30% - 50% 13 22 > 50%-70% 13 23 > 70% - 90% 7 24 > 90%-100% 7 25 100% 0 Total 133 Note: A total of 30 households will be affected by permanent land acquisition. The figures here only represent the households or APs to be affected by farmland.

24 III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION

3.1 Socioeconomic Profile of Fangchenggang City

37. Fangchenggang City is an important harbour city of GZAR. It is strategically located in the southwest end of the mainland coastline, facing the sea from three direction, 40 km to Vietnam at the west, 150 km to , 170 km to at the east, 132 sea miles from Halong Bay of Vietnam, 151 sea miles away from Hai Phong of Vietnam, 470 sea miles from Hongkong, and 1,345 sea miles from Singapore. It administers two districts, one county and one county-level city, namely Fangcheng District, , and Dongxing City (county-level city). The total area of the City is 6,181 km2. There are 24 townships, 2 street administration offices, 284 village committees and 14 resident committees. In 2009, the total population of the City is 852,800, including 545,000 agricultural populations. Fangchenggang is home to 20 minority ethnic groups in addition to the Han, including Zhuang, Yao, Jing, Dong, Miao, Mulao, Maonan, Hui, Shui, Gelao, Manchurian, Korean, Tibetan, Li, Dai and Uygur. The ethnic minority population account for about 48% of the total population. The Jing Minority Three Island of Jiangping Township, Dongxin City is the only Jing concentrated living area.

38. Since Fangchenggang has been classified as a prefecture-level city, especially during the “10th Five-Year-Plan” period, Fangchenggang has had rapid economic development as well as urban infrastructures. The GDP increased from 2001 CNY 6.265 billion in 2001 to CNY 9.324 billion in 2005, by average annual increase of 12.2%; the fiscal revenue increased from CNY 453 million in 2001 to CNY 804 million in 2005, with average annual increase of 15.4%. In 2005, the per capita GDP totaled US$ 1,406, per capita fiscal revenue more than CNY 1,000. By the end of 2009, the city achieved the GDP of CNY 24.378 billion (at current prices, the same as below), an increase of 22.6%; per capita GDP reached CNY 28,746, an increase of 20.9%. Among them, the primary industry added value was CNY 3.98 billion, an increase of 4.8%; the second industry CNY 12.493 billion, an increase of 36.2%; and the tertiary industry CNY 7.905 billion, an increase of 14.2%. The proportion of the first, second and tertiary industry is 16.3:51.3:32.4. The proportion of the second industry gas increased significantly. The industrial structure was further optimized. The fixed social capital investment accounted for CNY 25.410 billion, up 74.0%, with growth ranked first in the region. The fiscal revenues reached CNY 2.739 billion, an increase of 24.9%. The per capita disposal income of urban residents is CNY 16,067, ranking third in the region, an increase of 11.9%; per capita net income of rural residents is CNY 4,903, ranking first in the region, and increase of 10.2%.

3.2 Socioeconomic Profile of the Affected Area and APs

39. This survey was undertaken by the Sha’ao Village of Maoling Township, Fangcheng District under the supervision of PMO and IA between April and May 2010. Its main objectives were: (i) to compile socioeconomic information on the APs likely to lose land or property to the Project component; (ii) to obtain information on the extent of APs’ knowledge of the proposed Project; and (iii) to identify APs’ preferences regarding land acquisition, structure demolishment and income rehabilitation measures.

40. The survey covers the rural households to be affected by permanent land acquisition, structure demolishment and temporary land occupation. A total of 70 families (100% of households to be affected by permanent land acquisition and house demolition, and 40% or 40 households to be affected by the temporary land occupation) of the total affected households were surveyed. Table 3-1 presents the

25 surveyed VC and households, and Table 3-2 shows the socioeconomic status of the affected villages.

Table 3-1: Surveyed Household and Units No. of District Township Village Affect Surveyed Household Permanent land acquisition and 30 Fangcheng structure Maoling Sha’ao District demolishment Temporary land 40 occupation Total 70

Table 3-2: Economic Status of Affected Villages Items Sha’ao Village Total Households (No.) 456 Total Population (No.) 2,210 Female 1,017 Agriculture Popu. (No.) 2,210 Non-agriculture Popu. (No.) 0 Total Labor Force (No.) 1,215 Industry 30 Agriculture 635 Service Industry 550 Total Area of Farmland (mu) 3,496.45 Paddy Land 3,363.45 Irrigated Land 115 Dry Land 18 Vegetable Land 20 Wood Land 4,450.50 Orchard Land 36 Fish Ponds 15 Waste Land 0 Gross Income (CNY 10,000) 757.60 Agriculture (CNY 10,000) 312.00 Industry (CNY 10,000) 30.60 Service Industry (CNY 10,000) 415.00

3.2.1 Demographic Features of APs

41. The detailed demographic features of surveyed APs are listed in Table 3-3, including age, population composition, education and occupation by gender.

42. Of the total surveyed household populations, all households and populations are rural, including 155 persons or 47.11% are women. The family size is 4.7 persons. Of the total affected rural population, 456 APs are in labor force accounting for 55.12% of the total population. The ages of the surveyed population showed that the

26 population is approximately distributed in normal situation, between 7-19 years old accounting for 19.95% of the total sampled population; the majority of the population between 20-50 years old who represent the major workforce and account for 45.83% of total sampled population, and between 51-70 years old accounting for 18.74% of the total sampled population.

43. Over half (85%) of the household members have received primary and junior middle school education, primary school education ranked first, 60%, junior school education ranked second, 25%. Illiterate persons ranked third, accounted for 10%, senior high school education ranked fourth, accounted for 4%; 1% have received education from vocational school. Illiterate persons mostly are those who are over 60 years old. Of the total surveyed respondents, 19.94% are those who are over 60 years old or less than 6 years old.

44. The employment is characterized by 60% of the APs in labor force engaged in seasonable labor (construction industry and food catering industry), 40% engaged in the agricultural and sideline (such as breeding), they also use low-peak season during agricultural production period to go out for seasonable labors. Some women and young people also go out for seasonable work, and this become to be the main income resources.

Table 3-3: Demographic Features of the Total Affected Populations Male Female Total Item Number % Number Number % Households: 70 174 52.89% 155 47.11% 329 100.00% Household Size：4.7 Age ≤6 Years 18 5.47% 14 4.26% 32 9.73% 7-19 Years 37 11.25% 29 8.81% 66 20.06% 20-35 Years 33 10.03% 33 10.03% 66 20.06% 36-50 Years 43 13.07% 42 12.77% 85 25.84% 51-60 Years 23 6.99% 24 7.30% 47 14.29% 61-70 Years 10 3.04% 5 1.52% 15 4.56% ≥71 10 3.04% 8 2.42% 18 5.46% Total 174 52.89% 155 47.11% 329 100.00% Composition Kids (< 7 years old) 18 5.47% 14 4.26% 32 9.73% Students 44 13.37% 24 7.30% 68 20.67% Labor Force 96 29.18% 85 25.84% 181 55.02% Retired* 16 4.87% 32 9.71% 48 14.58% Total 174 52.89% 155 47.11% 329 100.00% Education Illiterate 16 4.86% 17 5.17% 33 10.03% Primary school 106 32.22% 91 27.66% 197 59.88% Middle school 43 13.07% 39 11.85% 82 24.92% High school 7 2.13% 6 1.82% 13 3.95% Vocational School 2 0.61% 2 0.61% 4 1.22% College 0 0.00% 0 0.00% 0 0.00% University or Above 0 0.00% 0 0.00% 0 0.00% Total 174 52.89% 155 47.11% 329 100.00% Occupation Seasonable labor 62 31.47% 56 28.43% 118 59.90%

27 Male Female Total Item Number % Number Number % Farmer 37 18.78% 42 21.32% 79 40.10% Total 99 50.25% 98 49.75% 197 100.00% Note: The retired person means female ≥55 years, male≥60 years. Data sources: Socioeconomic survey between April and May, 2010.

3.2.2 Residential Houses

45. All structure within the scope of the Project ROW will be demolished. According to the survey, it indicates that the average area of structures is 137 m2. Table 3-4 is the area of structures to be demolished.

Table3-4: Area of Residential Structure Demolishment (N=5 HHs) unit: m2/AH Structures Min. Max. Average Area of Structures (m2) 100 210 137

46. The affected structures mostly include brick-concrete, brick-wood and simple structure, of which 79% are brick-concrete, 13% brick-wood, and 8% simple structure.

3.2.3 Land Use

47. The affected village has a total of 3,497 mu farmland, 456 households or 2,210 persons. The average farmland per households is 7.67 mu, with average farmland of 1.58 mu per capita. The land use in the village mainly includes paddy land, irrigated land, dryland, vegetable land, wood land, orchard land, and fish pond. The major agricultural crops are paddy rice, corn, vegetables, etc.. The fruit trees include Lychee, peach, plum and citrus, etc. As a result of land acquisition, the affected village groups will lose 1.25% of their land, including 0.86% of collective farmland.

3.2.4 Financial Situation of Households

48. According to the statistical data of the surveyed households, the average annual income is CNY 18,706 per household or 3,980 per capita, of which 52.82% are from transportation service and seasonable labor (construction and food catering industries), 41.18% from agricultural and sideline business income, Of the total household income, 54% are contributed by males and 46% by females, mainly due to males engaged in transportation and seasonable labor. Table 3-5 provides the details of the average income of the affected households by gender.

Table 3-5: Average Income of the Affected Households by Gender Average Annual Income of Households Income Income Source of Income Total of % of Male % % (CNY) Female (CNY) (CNY) Service, Construction And 11,002.87 58.82% 7,856.52 42.00% 3,367.08 18.00% Catering Sales of Agricultural 7,703.13 41.18% 2,244.72 12.00% 5,237.68 28.00% & Sideline Products Total 18,706.00 100.00% 10,101.24 54.00% 8,604.76 46.00%

28

49. The results of the survey show that the average annual expenditure per household is CNY 15,510, accounting for 38% of the total household expenditure. See Table 3-6 for the details of average household expenditure.

29 Table 3-6: Average Annual Expenditure of the Affected Households Average Annual Average Annual % of Total Expenditure Expenditure Per Expenditure Per Expenditure Capita (CNY) Family (CNY) Food 1,254.00 5,893.80 38.00% Water & Electricity Cost 305.91 1,437.78 9.27% Clothes 301.95 1,419.17 9.15% Transportation 201.30 946.11 6.10% Telecommunication 144.87 680.89 4.39% Education 165.00 775.50 5.00% Medical Care 114.84 539.75 3.48% Gifts 305.91 1,437.78 9.27% Agricultural input 420.42 1,975.97 12.74% Others 85.80 403.26 2.60% Average Annual 3,300.00 15,510.00 100.00% Household Expenditure

3.2.5 Vulnerable Groups

In total, there are no vulnerable households in the Project affected area.

3.2.6 Gender Perspectives on Resettlement

50. When asked the surveyed households on the resettlement issues, the majority of the affected households request fair and timely compensation, employment opportunities, and children’s education, if their land has to be acquired and structures have to be demolished. In comparison with house demolition, the APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them as their farmland is affected by high-salt sea water, which severely affected agricultural production. They are not willing to engage in agricultural production any more but hope to get the cash compensation and future employment. The surveyed 70 households would like to use compensation payment to do some businesses or get some training to be employed in enterprises and institutions and no longer engaging in agricultural farming any more. For those who will lose their houses, they expressed that they would use the compensation payment to rebuild structures. Table 3-7 provides the opinions and concerns of the APs for resettlement. All of these concerned raised have been incorporated in the planning and implementation of resettlement program, and relevant mitigation measures should be formulated and implemented.

Table 3-7: Opinions and Concerns of the APs on Resettlement Item % of Males % of Females Fair Compensation 90 100 Reconstruction House Plot 30 40 Timely Compensation 80 90 Employment 100 80 Obtaining Reconstruction Land 20 10 All Cash Compensation 100 100 Future Employment 100 100 Children’s Education 80 90 Assistance during Resettlement 10 30 Loss of Family Social Network 10 20 Others (Government’s Assistance) 20 20

30

51. Of the total affected population, 155 persons or 47.11% are females, including 98 women are in labor force. As more men move out of the villages for seasonable labor, there is increasing proportion of women engaging in agricultural and household activities than their male counterparts. As a result, the income made by women from farming and sideline activities is 16% higher than males. Thus, the impact of land loss will be higher for women than men. However, the land acquisition also provides opportunities for women to be engaged in non-agricultural activities which are more suitable for them, such as food catering services, hairdressing salon, clothing store, grocery store. These business/job opportunities will reduce women’s heavy workload from agricultural farming and make them generate higher income from the development of tertiary industry. As a result, women to be affected are willing to give their land for the construction of the Project. To switch from agricultural activities to service industry, it is important that local government and IA ensure proper training provision to women which could help them to gain the necessary skills and knowledge to operate the business or perform the work.

31 IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE

4.1 Public Participation Strategy

52. Great attention has been paid to public participation under the Project during the planning, and RP preparation. Comments have been solicited from the affected village, government organizations and affected households.

4.2 Methods and Measures of Public Participation

53. During the preparation of the project FSR, PMO, IA and DI have held various meetings with the relevant organizations and representatives of the village regarding the land acquisition and resettlement issues and compensation policies. Comments and suggestions have been obtained on the resettlement site, compensation, and livelihood and income rehabilitation plan. The RP has been prepared based on the above.

54. During the project implementation phase, PMO, IA and RO will encourage local residents to involve in the land acquisition and livelihood rehabilitation and income restoration process.

4.3 Public Participation during RP Preparation

55. During the RP preparation, all relevant organizations and representatives have participated in the following activities:

(1) During the measurement survey of land acquisition and resettlement between April and May 2010, all levels of relevant organizations responsible for land acquisition and resettlement, village committee, representatives of and villagers (including women) have been involved in the survey activities. During the survey, women were basically on the spots, they carefully checked and read the index investigation final results.

(2) From April to May 2010, the PMO, IA and DI organized many meetings with district leaders, representatives of VC, and APs to publicize the existing national, autonomous region and municipal resettlement policies and ADB’s Safeguard Policy Statement 2009. Comments have been solicited from the participants for minimizing the project impacts, and formulating the compensation rates, and resettlement and rehabilitation plan. With extensive consultations, the APs who will be affected with different losses all agree with the cash compensation or replacement resettlement in accordance with the national regulations.

(3) During resettlement planning period from April to May 2010, PMO, IA, DI, and other relevant organizations visited the affected village committee and villager group, held meetings with participation of the villager leaders and representatives of the villagers to solicit their comments on land acquisition and resettlement, compensation policies and standards, resettlement plan, and restoration measures. These consultation meetings and investigations have generated lots of interests in the resettlement issues and compensation policies, compensation entitlements, and rehabilitation plan. The backward resettlement scheme within the same village was discussed.

(4) In order to strengthen the project awareness and outreach, PMO, IA and DI conducted questionnaire surveys of the APs in April and May 2009. The

32 survey covered all the households to be affected by land acquisition and residential structure; and the result is reliable and reflects the preferences of the APs.

(5) Consultation workshops on environment and resettlement between April and May, 2010.

56. The results of the consultation indicate that in general, the APs are not willing to be engaged in the agriculture activities any more and do not expect land readjustment, they require fair and reasonable cash compensation and provide employment opportunities, provision of permanent house plot and construction of basic infrastructures by the government as soon as possible, and the payment should be paid timely. In comparison with house demolition, the APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them. They would like to use cash compensation to reconstruct their houses, and they also would like to use cash compensation from the loss of their land to rehabilitate their livelihood and income, such as: i) purchase of social insurance; ii) development of self-employed tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning, entertainment, food catering and hotel services, and tourism); and iv) investment in their children’s education. They expect to seek employment in other institutions, enterprises and businesses through training. The APs are satisfied with the compensation rate, and resettlement and rehabilitation measures. However, they also expressed their concerns on fair compensation and timely disbursement of compensation payment.

4.4 Women’s Participation

57. Women in the Project area enjoy equal rights with men and they are playing an important role in project planning, design and implementation. During the field survey, about 40% of women have participated in the survey on land acquisition, structure demolishment and inventory indexes. Meanwhile, the local government organized the resettlement consultation meeting (at least 40% participants are women) and some representatives of Fangchenggang City Women’s Federation were asked to participate in consultation meetings to fully solicit opinion of local women. The major concerns for women are fair compensation standards and timely compensation payment. They would like to get necessary assistance from the local government during the land acquisition and resettlement process, priority for employment and training opportunities.

4.5 Information Disclosure

4.5.1 Resettlement Information Brochure

58. In order to help the APs gain a good understanding of the land acquisition and resettlement policies and their entitled rights, IA (Fengchenggang City Fangcheng District Urban Construction and Investment Co., Ltd.) in association with BESTCCL has prepared a resettlement information brochure (RIB) and a copy of RIB will be distributed to each AP before 15 December, 2010. Please refer to Appendix 1 for the RIB. The main components of the brochure include: (1) general description (including purpose and location) of the Project and the socioeconomic benefits; (2) project impacts; (3) laws, regulations and policies of land acquisition and resettlement; (4) basic rights and entitlements of the APs; (5) compensation rates; (6) resettlement and income restoration plan and grievance procedure; and (7) implementation schedule. The affected persons were satisfied with the compensation rates and the rehabilitation

33 measures proposed. They will sign their agreement on the entitlements. The disclosure procedure can increase the transparency during the resettlement implementation. At the same time, it will advise the APs how they can raise their requests and appeal through various channels (including the VC, PMO, IA and RO, FLRB, FHDAO, GZAR LRB, GZAR HDAO, and court) and various methods (i.e. by visiting, writing letter or telephone).

4.5.2 Distribution of the Resettlement Plan

59. The draft resettlement plan was distributed to the affected VC in September 2010. The RP to be approved by FMG will be redistributed to village committees by 15 December 2010 to any one wishing to consult the document in the VC. Copies of the RP will be kept in the Project office and affected VC. At the same time the RP will be posted on the ADB’s website. The RP will be updated based on the detailed measurement survey (DMS) in January 2011 and will be disclosed to the APs and submitted to ADB for review and approval prior to start of land acquisition and resettlement activities and approval of civil works contract awards. After ADB approval, the updated RP will also be posted on ADB’s website for disclosure.

4.6 Public Participation Plan during RP Implementation

60. In order to address the problems and needs of the APs properly and timely regarding land acquisition and resettlement, further consultations with the APs will continue so that all issues may be addressed prior to the start of construction and the implementation of the RP. Meetings will be arranged by the implementation agencies for land acquisition and resettlement, as appropriate. Each affected household will have the opportunity to negotiate the compensation contract, which they will sign with the RO. Table 4-1 provides the public consultation plan and process, and Table 4-2 the outcome of the consultantion process.

Table 4-1: Public Consultation Plan and Process Purpose of Form of Implementin Target Timing Remarks Event Event g Agencies Participants 1. Provide Village April 2010 – PMO, IA, DI, All APs Meetings held briefings to meetings May 2010 district affected by with APs in the APs on and focus government, LAR of the village Project & group and VC Project RP. Solicit discussion comments from APs. 2. Public & December, PMO, IA, All APs Distribution of Disclosure village 2010 district affected by RIB to all APs to of RIB meetings government, LAR of the discuss and focus FLRB, Project concerns and group FHDAO, and suggestions on discussions VC LAR programmes

Undertook discussions with various focus groups to solicit comments & suggestions

34 Purpose of Form of Implementin Target Timing Remarks Event Event g Agencies Participants 3. Conduct Site January, 2011 PMO, IA, DI, All APs Inventory survey Final investigation district affected by of all assets and Detailed s and governments, LAR of the land holdings Measuremen household FLRB, Project t Survey interviews FHDAO, and Collection of (DMS) VC socioeconomic data 4. Present Public & September, PMO, IA, All APs Distribution of Draft Final village 2010 district affected by the draft RP to RP to APs meetings governments, LAR of the APs to discuss and focus and VC Project concerns & gaps group relating to LAR discussion programs

Undertake discussions with various focus groups to solicit comments & suggestions 5. Prepare Public & February, 2011 PMO, IA, and Stakeholders, Meetings to be and village district beneficiaries, held with Disclose meetings governments, and APs beneficiary Detailed and focus and VC population, and Design and group with APs Updated RP discussion to APs Prior to Submission to ADB for Approval 6. Advise APs Public December, PMO, IA, and All APs Household of meetings 2010 RO affected by meetings to Entitlements LAR of the outline and Dates of Project entitlements Disbursemen t 7. Household April 2011 – April PMO, IA, Random Provide Monitoring interviews 2013 district samples recommendations of APs, government, and update RP beneficiaries FLRB, FHDAO, VC, Monitoring plan and independent monitoring agency Note: FHDAO = Fangchenggang House Demolishment Administration Office; FLRB = Fangchenggang Land Resources Bureau; RO = Resettlement Office; VC = Village Committee

35 Table 4-2: Outcome of the Public Consultantion Process Key Issues No. of Location Time Means Raised by the Participants Discussed APs Sha’ao April-Ma Resettleme 70 Project Support the Project Village y, 2010 nt survey description, LAR construction, impacts, and scope of LAR measures to impacts, LAR minimize the LAR timing, fair and impacts. timely compensation, resettlement within the same village. Sha’ao 8-9 July, Consultatio 32 Compensation Agreement with Village 2010 n meeting standards, the entitlements, compensation relocation scheme, rates, assistance income by the local rehabilitation government for the measures. tertiary industry development, priority given to the APs for employment, provision of training, no preference for land re-allocation. Sha’ao 15 Sept., Focus group 30 Major components Timely Village 2010 discussion of the RP, compensation including the LAR disbursement, impacts, laws, assistanc of the regulations and local government compensation, for the APs to entitlement, develop tertiary resettlement plan industry, well and livelihood and established income restoration greviance plan, greviance procedures. procedures, schedule, etc.

61. For smooth and successful implementation of the resettlement plan, the APs will be encouraged to actively participate in various land acquisition and resettlement activities. The Project construction will cause some impacts more or less on local people. In order to ensure the APs could benefit from the Project, local people are encouraged to actively participate in the project construction, and necessary consideration and assistance should be provided to local APs in the use of labors.

36 V. APPEALS AND GRIEVANCE PROCEDURES

62. APs can propose any complaint related to resettlement issues and compensation. The Project has established a transparent grievance channel in addition to the existing grievance channels of local government. The first step of grievance procedure established for the Project is through village committee, which is localized grievance mechanism. The legal resolution is the last step proposed for the APs in case that the APs are not satisfied with the decisions made during the whole localized grievance process. APs will be informed of the above grievance and appeal procedure through public information meetings, the resettlement information brochure and other media, so that they can fully understand their rights for grievance and appeal. The resettlement implementation organizations should resolve the grievance for the APs timely. The basic grievance procedures include the following steps.

Stage 1: 63. If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the village committee or in oral or in written form. If an oral appeal is made, the village will record it on paper and process it. Village committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice.

Stage 2: 64. If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the district government office after receiving the decision; the district government office will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 3: 65. If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the Fangchenggang Project Management Office (FPMO) or Fangchenggang Land Resources Bureau (FLRB) or Fangchenggang House Demolishment Administration Office (FHDAO) after receiving the decision. The Fangchenggang City PMO or FLRB or FHDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 4: 66. If the aggrieved AP is still unsatisfied with the decision of the FPMO or FLRB or FHDAO, he/she will appeal to the GZAR LRB or HDAO after receiving the decision. The GZAR LRB or HDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 5: 67. If the AP is still dissatisfied with the decision of the GZAR LRB or HDAO, he/she will appeal to the civil division of a people’s court according to the civil procedural law after receiving the decision from GZAR LRB or HDAO. The AP will be informed of the result via written notice.

68. The resettlers can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc.

69. An independent agency (IMA) will be hired by the FPMO for the overall resettlement monitoring and evaluation of the Project in Fangchenggang City. The IMA will inspect and report on the resettlement processes and the operation of the FPMO and relevant organizations involved in the LAR implementation at different levels and correct any errors made during the resettlement process.

37 VI. LEGAL FRAMEWORK AND POLICIES

6.1 Applicable LAR Laws, Regulations and Policies

70. The PRC has established and implemented laws, regulations, and policies on resettlement and compensation for many infrastructure projects. This Project will follow the related Chinese laws, national and GZAR regulations and local bylaws and policies, and also include comments and suggestions from APs, and meanwhile meet the requirements of ADB’s Safeguard Policy Statement (2009). The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project.

71. The land acquisition, demolition and resettlement of this Project will be complying with the laws and regulations of PRC, local government and ADB:

 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004;  Land Administration Law of the PRC, amended in 2004;  Implementation Regulation for Land Administration Law of PRC; December 1998;  Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93];  Temporary Regulations on Farmland Acquisition Tax of PRC, 2008;  GZAR “Land Administration Law”, 2001;  Management Law of Urban Real Estate of PRC, 1994;  Decree 15 of Guangxi Zhuang Autonomous Region People’s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region;  Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52];  Implementation Methods of GZAR farmland occupation tax [Guizhengfa (1987) No. 88 59];  Notice of Compensation and Resettlement Method for Land Acquisition and Resettlement of Four Lines and Four Areas Construction in Fangchenggang City, 2009;  Unified Standard of Annual Output Value issued by the People's Government of Fangchenggang City, 25th January, 2010;  ADB’s Safeguard Policy Statement, 2009;  Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998;  Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; and,  OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006.  ADB’s Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010).

6.1.1 ADB’s Involuntary Resettlement Policies

72. ADB Safeguard Policy Statement 2009 and Resettlement Operations Manual (OM Section F1) have already specified the 3 important elements of the involuntary resettlement: (i) compensation to replace lost assets, livelihood, and income; (ii)

38 assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the Project as without it. Some or all of these elements may be present in a project involving involuntary resettlement. For any ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the Project cycle, taking into account the following basic principles:

i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. iii) Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. iv) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. vii) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets. viii) Prepare a resettlement plan elaborating on displaced persons’ entitlements,

39 the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. ix) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

6.2 Related Laws and Regulation of the PRC

73. This Project can be implemented based on the PRC Land Administration Law (effective as of January 1, 1999 and amended in 2004), Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration issued by State Council, October 2004 as well as the other relevant laws and regulations.

6.3.1 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration, issued by State Council, October 2004

74. Article 12: Improving land acquisition compensation practice. People’s Governments at the county level and above shall adopt practical measures to ensure that the farmers whose land is acquired shall not be made worse off. It should be ensured that land compensation fees, resettlement subsidies and compensation for ground attachments and standing crops shall be provided in accordance to applicable laws and regulation in full and in time. If the land compensation fees and resettlement subsidies as stipulated by law still cannot be able to maintain the original standards of the land-losing farmers and are not adequate to cover the social insurance costs of the landless farmers, the provincial government shall approve an increase in the resettlement subsidies. If the sum of the land compensation fees and resettlement subsidies has reached the legal upper limit but still cannot maintain the original living standards of the farmers, the local government can provide additional subsidies with the use of revenues from the sales for the use of state land. The provincial government shall formulate and publicize the standard annual output or regional land prices for land acquisition in the cities and counties under the provincial jurisdiction. Land acquisition compensation shall be kept identical for identical quality of land in same locality. The full costs of land acquisition for national key development projects shall be included in the overall project budget.

75. Article 13: Properly resettling farmers whose land is acquired. People’s Governments at the county level and above shall formulate concrete measures to guarantee the long-term livelihood of the farmers whose land is taken. The farmers shall be given stocks for land-taking projects that have stable revenues. In a prescribed urban zone, the local government shall place the farmers who are made

40 landless because of land acquisition in the urban employment system, and set up a social insurance system for them. If the acquisition of collective land takes place outside the prescribed urban area, the local government shall set aside essential farmland within the administrative area or assign suitable jobs. Resettlement in distant areas should be considered for farmers who can no longer have adequate land to continue farming. The labor and social insurance departments shall cooperate with other relevant departments to provide guidance on the establishment of employment training and social insurance program for land-losing farmers.

6.3.2 PRC Land Administration Law

76. The Land Administration Law of the PRC was passed at the 16th session of the Sixth Standing Committee Meeting of the National People’s Congress on June 25, 1986. It was subsequently amended at the Fourth Session of the Ninth Standing Committee Meeting of the National People’s Congress. The newly amended law was brought into force on January 1, 1999, according to the Decision on the Amendment to the Land Administration Law of the PRC that was adopted at the Fifth Session of the Seventh Standing Committee Meeting of the National People’s Congress.

77. ARTICLE 47: Land acquired shall be compensated for on the basis of its original purpose of use.

78. Compensation for acquired cultivated land shall include compensation for land, resettlement subsidies and attachments and young crops on the acquired land. Compensation for acquisition of cultivated land shall be six (6) to ten (10) times the AAOV of the acquired land for three years preceding such acquisition. Resettlement subsidies for acquisition of cultivated land shall be calculated according to the agricultural population to be resettled. The agricultural population to be resettled shall be calculated by dividing the amount of acquired cultivated land by the average amount of the original cultivated land per person for the unit of the land is acquired. The standard resettlement subsidies to be divided among members of the agricultural population needing resettlement shall be four (4) to six (6) times the AAOV of the acquired cultivated land for three years preceding such acquisition. However, the highest resettlement subsidies for each hectare of the acquired cultivated land shall not exceed fifteen times its AAOV for the three years preceding such acquisition.

79. Standards of land compensation and resettlement subsidies for acquisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for acquisition of cultivated land.

80. Standards for compensation of attachments and young crops on the acquired land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government.

81. For acquisition of vegetable plots in city suburbs, the land users shall pay towards a development and construction fund for new vegetable plots in accordance with the relevant regulations of the State.

82. If land ccompensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of this Article are still insufficient to help the farmers needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people's governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsidies shall

41 not exceed 30 times the AAOV of the acquired land for the three years preceding such acquisition.

6.3.3 Implementation Method of Guangxi Zhuang Autonomous Region for Land Administration Law

83. Article 7: The ownership of the state-owned and rural collective-owned land shall be determined by the Land Administration Law, the implementation regulation of the Land Administration Law and other laws and statutes.

84. Article 8: The rural collective-owned land is legally owned by the farmer's collectives and managed and administrated by the village collective economic bodies. If the village collective economic body is not complete, the villager committee shall manage and administrate the land. If the land in a village is owned by more than two rural collective economic bodies, each of the bodies or village group shall manage and administrate the land. If the land is owned by town or township, the rural collective economic bodies of the town or township shall manage and administrate the land. If the rural collective economic body of the town or township is not complete, the town or township government shall manage and administrate the land.

85. Article 21: Preparation of the yearly schedule of land use shall follow the following principle.

(I) strictly follow the overall land use plan and dominate the gross land size used for construction and protect the cultivated land. (II) Guide the land demand by land supply, and rationally and effectively utilize the land. (Ill) Preference of use of land shall be given to the key capital construction projects, and the projects supported by the state industrial policies of the region and state. (IV) Protect and improve the ecological environment and the sustainable use of the land resources.

86. Article 26: The followings shall abide by in reclaiming new cultivated land in same size and quality of the cultivated land requisitioned for non-agricultural construction. (I) Within the land boundary for urban construction defined in the overall land use plan, the local city, county government shall be responsible for organizing reclamation for implementation of the planned urban construction; (II) Within the land boundary for construction of village or town facilities defined in the overall land use plan, the town or township government shall be responsible for organizing the rural collective economic bodies or the land occupying organization to reclamation for implementation of the planned construction of village or town facilities; and (IlI) For the cultivated land occupation for construction of power generating, transportation, water conservancy, mining and military facilities beyond the land boundary for urban and rural construction defined in the overall land use plan, the land occupation organization shall be responsible for reclamation of new cultivated land.

87. Article 27: For the cultivated land occupied for non-agricultural construction, the organization or individual shall pay the reclamation fee if he has no means for reclamation.

88. Article 34: The land use organization and individual shall restore the destroyed land due to excavation, collapse and occupation during production and construction according to the State's and Regional stipulations concerning reclamation of land, and in 30 days of completing such reclamation, applies to the

42 land administrative department of local municipality, county (city) government for inspection and acceptance. In case the land use organization or individual who has not means to conduct reclamation or whose such reclamation is not in compliance to the requirement in acceptance, he shall pay to the land administrative department of local municipality, county (city) government the land reclamation fee at a rate of CNY 20-80 per square meter. The said land administrative department shall organize the land reclamation.

89. Article 45: Each rural villager's household shall have only one piece of house plot. Construction of villager's residence shall be in compliance to the overall land use plan of the town/township, and shall be in combination of the reconstruction of the old village and take full advantages of the old house plot, idle land and waste land on hills within the village. Occupation of farmland shall be strictly limited. The area of approved new house plots shall observe the following criteria: (1) size of house plot in plain and suburban areas shall not exceed 100 square meters for each household; and (2) size of house plot in uplands and hilly areas shall not exceed 150 square meters for each household.

6.4 Gaps between ADB and Chinese Policies

90. In comparing the gaps between ADB and PRC policies, Table 6-1 presents that the distinctive differences in the aspects of legal rights or property certificates, and information disclosure and consultation which are lacking in content or in time delays.

43 Table 6-1: Gaps between ADB and PRC Policies PRC Laws and Regulation ADB SPS 2009 Gaps, if any Gap Filling Strategy The People’s Governments at the Improve, or at least restore, the There are no gaps, however the The local Government and IA county level and above should livelihoods of all displaced standards and regulations for the have complied with ADB’s SPS ensure that land compensation persons through (i) land-based PRC laws and regulation related policy to draw the participation of fees, resettlement subsidies and resettlement to resettlement compensation is the APs and relevant stakeholders compensation for ground value for land when the loss of top-down decision making in the Project design and the RP attachments and standing crops land does not undermine process, while ADB emphasizes preparation phase, including the shall be provided in accordance to livelihoods, (ii) prompt compensation should be based on determination and negotiation of applicable laws and regulation in replacement of assets with public consultation which is compensation standards as well full and in time. If the land access to assets of equal or higher community-based (bottom-up) as formation of income and compensation fees and value, (iii) prompt compensation at decision making process. livelihood rehabilitation program. resettlement subsidies as full replacement cost for assets The local Government and IA will stipulated by law still cannot be that comply with the transparent, able to maintain the original cannot be restored, and (iv) consistent and equitable standards of the land-losing additional revenues and services procedures during the LAR farmers and are not adequate to through benefit sharing schemes implementation phase. cover the social insurance costs where possible. of the landless farmers, the provincial government shall approve an increase in the resettlement subsidies. If the sum of the land compensation fees and resettlement subsidies has reached the legal upper limit but still cannot maintain the original living standards of the farmers, the local government can provide additional subsidies with the use of revenues from the sales for the use of state land.

44 PRC Laws and Regulation ADB SPS 2009 Gaps, if any Gap Filling Strategy PRC laws and regulations clearly ADB's SPS policy requires to According to the existing Chinese For the Project, the local stipulate that there is no ensure that displaced persons laws and regulations, no Government and IA will protect compensation for demolishing without titles to land or any compensation will be paid to the and compensate all affected illegal building and temporary recognizable legal rights to land expropriation of violated, illegal people regardless of whether they buildings that exceed the are eligible for resettlement buildings and the land without have property certificates, approved period, which means assistance and compensation for property certificate. However, housing tenure, land use rights or beyond the expiry date loss of nonland assets. In rural according to ADB’s SPS policy, lease rights in according to ADB’s certification. areas provide them with legal and these APs are eligible for policy. However, any recognized affordable access to land and resettlement assistance and illegally land developed or resources, and in urban areas compensation for loss of nonland temporary buildings constructed provide them with appropriate assets and rehabilitation after the cut-off date cannot be income sources and legal and measures. compensated. affordable access to adequate housing. No provision of laws and ADB policy requires paying Chinese laws and regulations The issues of vulnerable groups regulations for the vulnerable particular attention to the needs of require giving all APs the same and gender equity have been groups. vulnerable groups, especially treatment without special incorporated in the LAR planning those below the poverty line, the consideration to vulnerable by the local Government and IA. It landless, the elderly, women and groups. ADB’s SPS policy will be continuously integrated in children, and Indigenous Peoples, requires particular attention LAR implementation through the and those without legal title to should be paid to the needs of provision of a preferential policy to land, and ensuring their vulnerable groups, including vulnerable groups in such things participation in consultations. women. as compensation, MLG, employment, training without charge, provision of social safeguard program, provision of micro-credit by the local credit union or local banks with assistance of the local Government, and assistance in selection and allocation of new

45 PRC Laws and Regulation ADB SPS 2009 Gaps, if any Gap Filling Strategy house and relocation. Consultation service is provided in According to the requirement of In the Land Administration Law of To meet the requirements of the Land Administration Law of ADB for the RP preparation, the PRC, it provides the consultation public consultation and PRC. APs should be fully informed and service, but no concrete and transparency, the local closely consulted through specific clauses and procedures Government and IA have meaningful consultations with are provided. During actual complied with ADB’s policy to affected persons, host practice, usually there is no conduct extensive consultations communities, and concerned consultation and no information with the APs and various nongovernment organizations; disclosure until the approval of RP stakeholders, and inform them the informing all displaced persons of due to the facts that formal land impacts, compensation, their entitlements and acquisition and location are not entitlements and resettlement resettlement options; and finalized during the RP schemes, grievance procedures ensuring their participation in preparation stage and the land and so on during the LAR planning, implementation, and user is unwilling to inform the APs. planning phase. The local monitoring and evaluation of However, according to ADB’s SPS Government and IA will resettlement programs. policy, it requires that the APs continuously ensure the should be fully informed and participation of the APs in the LAR closely consulted through implementation phase. meaningful consultations with affected persons, host communities, and concerned nongovernment organizations; informing all displaced persons of their entitlements and resettlement options; and ensuring their participation in planning, implementation, and monitoring and evaluation of resettlement programs.

46

6.5 Compensation Criteria and Principles

6.5.1 Entitlement

91. The Project affected persons (APs) are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected area. All landowners and users and occupants of structures in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the types of losses and quantities who are there before the the cut-off date determined by Fangchenggang Municipal Government. The cut-off date for the compensation will be announced to all APs immediately afterward, within the completion date of the construction map and investigation; any newly cultivated land, or planting of crops or trees, or structures built after the cut-off date determined by the local government will not be compensated.

6.5.2 Compensation Principles

92. The principles of the compensation and entitlements established for the Project are to: Improve, or at least restore, the livelihoods of all affected persons/displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible; Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

6.5.3 Compensation Rate

6.5.3.1 Permanent Land Acquisition

93. According to Unified Standard of Annual Output Value issued by the people's Government of Fangchenggang, it has been carried out since 25th January, 2010. The compensation standards will be made by different township of Fangchenggang City specified in the above mentioned document, with 16 times of multiplier for land compensation, resettlement subsidy and standing crops. The compensation rate for collective land (calculated based on 16 times of multiplier) is equivalent to the replacement value and also acceptable to the affected households. The rates by different townships are the same to be applied to all types of land loss and will be fully paid to the affected villagers with the same rates (see Table 6-2). As only one township will be affected by the Project, thus, only one rate will apply to the different types of land loss for the Project and the same rate will also apply to all APs who lose different proportion of their land. As the APs do not want to engage in agricultural farming any more, thus, they are willing to give their land for the Project construction and get cash compensation to be used for the development of tertiary industry.

47 Table 6-2: Compensation Rate of Collective Land Unit: CNY / mu Standard of Compensation Annual Output Multiplier by Township Rate by Region Value by Region Region (times) (CNY/mu) (CNY/mu) Maoling Township 1,108 16 17,728

94. Based on Notice of Compensation and Resettlement Method for Land Acquisition and Resettlement issued by the People's Government Office of Fangchenggang City, supplementary allowance of CNY 2,000 will be paid to affected people who sign agreement of land acquisition timely.

6.5.3.2 Temporary Land Occupation

95. The compensation for the standing crops loss of temporary land occupation of the Project based on the calculation of the average annual output value of last three years’ AAOV, which will be paid to the APs is presented in Table 6-3. As the pipeline construction will be carried out section by section, thus temporary land occupation will be taken from one month to three months. The compensation rates to be paid to the farmers cover one year crop loss, which is sufficient to the APs. The land recoverty cost is excluded in the RP, but included in the engineering cost of the Project.

Table 6-3: Temporary Land Occupation Compensation Standard Land Type Unit Compensation Standard (CNY) Paddy land mu 746.00 Vegetable field mu 3,173.00 Dryland mu 700.00 Fish Pond mu 4,481.00 Waste land mu 0.00 Wood land mu 1,242.00

6.5.3.3 Demolishment of Residential Structures

96. According to the compensation standards in the “Notice of Compensation and Resettlement Method for Land Acquisition and Resettlement of Four Lines and Four Areas Construction in Fangchenggang City, 2009”, for the lost residential house structures and auxiliaries, the compensation rates are presented in Table 6-4. All the compensation rates for the structures and auxiliaries will be based on replacement value and will be determined based on the Evaluation Center’s response based on the evaluation by the qualified real estate evaluation company. The compensation for residential houses will be paid to the APs. Relocation allowance will be provided to the APs at the rate of CNY 8/m2, and each AP will be provided with temporary transit allowance at the rate of CNY 4,000/capita. As the APs will not move until their new houses are built, and the relocation will only take about 2 or 3 days, the relocation allowance should be sufficient.

48 Table 6-4: Compensation Rates of Residential House Demolition Unit Compensation Standard (CNY) Private Residential Structure Brick-concrete m2 600 Brick-wood m2 500 Simple m2 240 Relocation Allowance Relocation subsidies m2 8 Temporary transit allowance person 4,000

6.5.3.4 Ground Attachments

97. All affected ground attachments will be compensated at replacement rate to reflect the current value. The compensation standard for demolished structures and other facilities will comply with the 【2009】No. 52 document of Guangxi Reform and Development Committee. Table 6-5 provides the compensation standards of the ground attachments.

Table 6-5: Compensation Standards of Ground Attachments Compensation Item Unit (CNY) Auxiliaries Toilet No. 150.00 Fruit Tree mu 18,080.00 Chicken house M2 100.00 Pig pen M2 100.00 Methane gas pond M2 20,000.00 Well No. 2,200 Infrastructures & Special Facilities Electric pole No. 2,500.00 Rural road m2 20.00 Satellite antenna No. 1,000.00 Broadcasting Line m 30.00 Note: The fruit trees include lychee, plum and citrus. The compensation rates are higher than the rates regulated in the “Notice of Compensation and Resettlement Method for Land Acquisition and Resettlement of Four Lines and Four Areas Construction in Fangchenggang City, 2009”. For example, according to the Notice, the maximum compensation rate for lychee is CNY 500/each, the density of lychee planation is 33/mu, based on it, the compensation for lychee would be CNY 16,500/mu; the maximum compensation rate for plum and citrus is CNY 100/each, the density of plum is 30/mu and citrus is 25/mu, based on it, the compensation for plum is CNY 3,000/mu and citrus is CNY 2,500/mu. Thus, the APs will benefit from the higher rates proposed in the RP.

6.5.3.5 Special Policy for Vulnerable Group

98. During the project plan stage, there is no vulnerable group identified in the Project affected area. During the implementation period, if any vulnerable people are identified, the needs and interests of vulnerable groups, special attention will be given to them, particularly the potential difficulties faced by vulnerable people in affected areas. The PMO and IA will supervise implementation to ensure these vulnerable persons receive adequate compensation, reconstruction house land allocation, social

49 security plan, special fund and MLG. Assistances on training with free charge, employment, and micro-credit will be provided to them by the FMG, PMO and IA to restore their living conditions and incomes. During resettlement phase, the women-headed households and disabled and elderly people will be given priority to choose the reconstruction land or reconstruction house land.

50

VII. ENTITLEMENT MATRIX

99. From the results of inventory surveys, the major impacts of LAR have been identified based on the nature of losses, and an Entitlement Matrix has been prepared as a guide to compensation payments. The cut-off date will be determined by FMG in collaboration with relevant organizations involved, including PMO, IA, FLRB, FHDAO, and district government. Illegal land-use, construction of temporary structures will not be compensated after the notification of cut-off date. FMG, IA, FLRB and FHDAO could take photos/video of the places on the cut-off date to prevent further influx beyond the cut-off date. FMG will publicize the cut-off date on newspaper of “Fangchenggang Daily” and village bulletin board once the date is decided. The cut-off date will usually be upon the completion of DMS. The compensation will be made in the form of “cash” for land loss, and “cash plus reconstruction house land” for structure compensation. The relocated households will get relocation allowance and temporary transit allowance. The compensation will be in cash. Table 7-1 presents the entitlement matrix. As no farmland will be re-allocated, the compensation for the collective land loss will be paid to the affected households directly.

51 Table 7-1: Entitlement Matrix Type of Compensation Policy & Level of Impact Entitled Persons Agency Responsible Losses Standards Permanent Collective-Owned “Cash” will be provided to all APs Compensation rates to the APs: PMO, FCFDUCICL,FDG, land land: affected by permanent land 16 times multiplier of AAOV at Maoling District Government, acquisition 100 mu acquisition. CNY 17,728/mu; The FLRB, VC and RO 30 rural collective-owned compensation rates include the households land will be acquired Compensation for the rural land compensation, and 200 permanently for the collective land acquisition will be resettlement subsidy and rural Project, including 30 paid to the affected households standing crop compensation at populations) mu paddy land, 65 directly. market replacement value and mu wood land, and 5 all of them will be paid to the mu waste land); individuals. All compensation rates to be paid are at replacement value and no legal cost should be borne by the APs. The compensation rates for different land loss will be the same. The APs will get the same rate for different types of land loss as they are in the same township in accordance with the newly implemented “Unified Standard of Annual Output Value issued by the People’s Government of Fangchenggang”.

The following livelihood rehabilitation measures will be provided to the land loss farmers: i) various employment

52 Type of Compensation Policy & Level of Impact Entitled Persons Agency Responsible Losses Standards and income generation opportunities during the Project construction and operation phases; ii) development of self-employed tertiary businesses; iii) provision of technical training to the APs, and iv) provision of social insurance to the APs.

No vulnerable people have been identified in the Project affected area. However, if there is vulnerable people identified during the DMS or project implementation, the following provisions will be provided to them to rehabilitate their income: i) MLG fund at CNY 200/month; ii) training without charge will be provided to them to increase the knowledge and skills of the vulnerable groups; iii) provision social safeguard program; iv) provision of employment opportunities generated by the Project and provision of employment information to the vulnerable groups; and v) provision of

53 Type of Compensation Policy & Level of Impact Entitled Persons Agency Responsible Losses Standards micro-credit to them by the local rural credit union or local banks. The IA and the local government will assist the APs to get access to micro-credit from local banks. Temporary A total of 150 mu Cash compensation will be paid to Compensation standards to the PMO, FCFDUCICL, FLRB, and Land and rural collective the affected people directly by for farmers for the loss of standing RO Occupation land will be occupied standing crop compensation. crops: CNY 746 / mu for paddy (146 AHs or (30 mu paddy land, land; CNY 3,173 / mu for 627 APs) 5 mu vegetable Land recovery fees shall be paid by vegetable field; CNY 700 / mu land, 15 mu dryland, contractors, and it will be included in for dryland; CNY 4,481 / mu for 5 mu fish pond, 90 the engineering construction costs. fish pond; CNY 1,242 / mu for mu wood land and woodland. 7.5 mu waste land). After temporary land use, the land will be restored by the APs to original condition and keep the same quality. The land recovery cost is included in the engineering cost of the Project. Residential A total of 685 m2 All affected APs will be provided with Compensation for the affected PMO, FCFDUCICL, RO, FDG, structures residential “cash plus reconstruction house structures at full replacement FLRB, FHDAO, Fangcheng and structures will be land” to relocate and build new costs of materials and labors District Government, Maoling auxiliaries (5 demolished, houses within the same village. with no deduction for Township, VC, and RO. households including 542 m2 depreciation or salvageable or 28 rural brick-concrete, 92 The cut-off date will be determined materials. populations). m2 brick-wood, and by FMG in collaboration with 51 m2 simple relevant organizations involved, The current house plot of the structure. including PMO, IA, FLRB, FHDAO, APs is 685 m2, with average at

54 Type of Compensation Policy & Level of Impact Entitled Persons Agency Responsible Losses Standards and district government. Illegal 24.5 m2 / capita. The land-use, construction of temporary Fangcheng District Government structures will not be compensated in association with the Maoling after the notification of cut-off date. Township Government and FMG, IA, FLRB and FHDAO could affected village will be take photos/video of the places on responsible for providing house the cut-off date to prevent further plot.The standard for the influx beyond the cut-off date. FMG allocation of the reconstruction will publicize the cut-off date on house land in accordance with newspaper of “Fangchenggang the Notice of Compensation Dairy” and community / village and Resettlement Method for bulletin board once the date is Land Acquisition and decided. Resettlement of Four Lines and Four Areas Construction in Relocation allowance and temporary Fangchenggang City, 2009 is transit allowance in cash will be 25 m2 / capita. For those provided to the APs households with 3 persons or less than 3 persons, allocation of 80 m2 house plot could be provided with approval, but the APs need to pay for the area exceeding 25 m2/capita as the land development cost at CNY 1,500/m2. For those households whose house plot allocation is less than 25 m2/capita, the area which is not requested will be compensated at CNY 1,500/m2. The APs agree with the standards.

55 Type of Compensation Policy & Level of Impact Entitled Persons Agency Responsible Losses Standards

The compensation standards for structures are: CNY 600/m2 for brick-concrete, CNY 500/m2 for brick-wood, CNY 240/m2 for simple structure.

Relocation allowance will be paid to the AHs in cash at CNY 8/m2 and CNY 4,000/capita for temporary transit allowance. The Maoling Industrial Park Administration Committee in association with the VC will responsible for the site leveling and infrastructures, but the cost is included in the annual budget of FMG and excluded in the RP. The IA and local government will assist the APs on the selection and allocation of reconstruction house land, new house construction and relocation.

No vulnerable people have been identified in the Project affected area. However, if there is vulnerable people identified during the DMS or project

56 Type of Compensation Policy & Level of Impact Entitled Persons Agency Responsible Losses Standards implementation, the following provisions will be provided to them: i) For the elderly or disabled, priority should be provided to them during the selection of the location of reconstruction house land; and ii) Provide labor and transportation assistance to the vulnerable groups without charge. Ground 5 toilets, 8 mu fruit All Affected people or owners will Cash compensation will be paid PMO, FCFDUCICL, RO, Attachments tree, 10 m2 chicken get equivalent amount of cash to all affected people or owners: Fangcheng District Government, house, 35 m2 pig compensation CNY 150/each for toilet, CNY Maoling Township Government, pen, 15 m2 methane 18.080/mu for fruit tree, CNY and VC gas pond, 5 wells, 5 100/m2 for chicken house and electric poles, 2.5 pig hen, CNY 20,000/m2 for km rural road, 5 methane gas pond, CNY households’ satellite 2,200/m2 for well, CNY antenna, 1,000 m 2,500/each for electric pole, broadcasting line. CNY 20/m2 for rural road, CNY 1,000/household for satellite antenna, and CNY 30/m for broadcasting line

57 VIII RESETTLEMENT AND REHABILITATON PLAN

8.1 Objectives and Principles of Resettlement Program

100. The overall objectives of the resettlement program are for the affected people to be offered with livelihood opportunities, for the labor force to be resettled properly, and for the living and production conditions of the APs to be improved or at least not worse-off than before the Project. The basic principles of the resettlement and rehabilitation plan are as follows: i) Compensation should be paid in “cash” for the land loss families, and “cash plus reconstruction house land” for relocated families; ii) Development resettlement is promoted. The livelihood rehabilitation plan will be based on the provision of: a) various employment and income generation opportunities during the Project construction and operation phases; b) development of self-employed tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment, catering and hotel services, and tourism); c) provision of technical training to the APs to increase their skills to be employed in other institutions and enterprises, and d) provision of social insurance to the APs; iii) Implement the resettlement program properly, comply with related compensation policies, and ensure that the production and living conditions of the affected people are increased or at least restored; iv) The resettlement plan should be prepared and implemented in accordance with state’s land rehabilitation policy, national economic and social development plans. The needs and interests of state, collectives and individuals should be fully and equally taken into consideration; v) The APs should be consulted for the development of the resettlement plan and for the compensation rates; and vi) Women’s rights and interests should be fully taken into consideration of the Project.

8.2 Compensation and Rehabilitation Resettlement Plan

8.2.1 Resettlement Options and Plan

101. The Project will relocate 5 households and 28 persons. A total of 685 m2 structures will be demolished. To maintain the social network of the APs, to keep their original living and work continuity, the compensation will be provided based on the FMG policies and regulations: “cash plus reconstruction house land”, and auxiliaries at replacement value in cash. The APs will be resettled backward within the same village.

102. Table 8-1 and Table 8-2 provide the summary resettlement choices preferred by the affected households. According to the latest field survey, of the total 5 households, 100% households would like to choose “cash plus reconstruction house land” compensation. Most of the affected households (100% or 5 households) would choose the area adjacent to their original residence area within the same village in order to keep the original life style and production and maintain their original social relations.

Table 8-1: Resettlement Choices of the Affected Households Resettlement Choices of the Affected Persons (No.) Reconstruction Cash Compensation

Total AHs House Land + Purchase of Purchase of Cash Commercial House Economy House Total 5 5 0 0 % 100.00% 100.00% 0.00% 0.00%

58

Table 8-2: Resettlement Sites Selected by the Affected Households Resettlement Choices of the Affected Persons (No.)

Total Close to Original Other Households Place Sites Private Sha’ao Village 5 5 0 Structure Total 5 5 0 % 100% 100% 0%

103. In order to fully take into account the wishes of the affected persons in combination with Fangchenggang City Urban Master Plan layout, FMG has preliminarily planned the reconstruction house land within the original village. The Maoling Industrial Park Administration Committee in association with the VC will be responsible for “Three Access and One Leveling”, namely water, electricity and road access and land leveling. The cost will be covered by the infrastructure construction budget of Maoling Industrial Park Adminsitration Committee. The demolishment of residential structures will be compensated in replacement value, thus, it is sufficient for the APs to use the compensation payment to build their new houses. The IA and local government will assist the APs on the selection and allocation of reconstruction house land, new house construction and relocation.

104. During the resettlement process of the land acquisition and structure demolishment, some incentive measures and preferential policy will be adopted by the Project, such as for the early signing of compensation agreement within 30 days after the publicizing demolishment. A reward will be given to the APs. As for the APs who sign the resettlement and compensation agreement after the publicizing of relocation and have moved out, they will be provided with CNY 5,000 per household as award. For those relocated families who complete their house construction according to the plan within the regulated time period, an award of CNY 5,000 per household will be provided.

105. For safety reason, the demolition of the structures cannot be carried out by the resettlers themselves. It should be demolished by the qualified house demolishment agency. However, the materials such as doors and windows can be disposed and re-used by the households themselves. The APs can sale the salvageable materials to make some money.

106. For the demolished houses which have already had the relevant property certificates, it is the responsibility of the demolishment agency to process the relevant certificates from relevant municipal departments. The costs will be covered by the demolishment agency, and the new houses will be legitimized.

107. In addition, relocation allowance of CNY 8/m2 will be provided to each affected household, and temporary transit allowance of CNY 4,000 per person will also be provided to the APs, totaling 6 months. For each relocated family, they will get CNY 1,096 in total for the average loss of 137 m2 residential structures. For their moving, it will take about only one to two days, the productive income loss is about CNY CNY 103, (annual family income per year is CNY 18,706), plus transportation rental cost at about CNY 100/day. Thus, the relocation allowance is sufficient. The APs will not be moved after the new houses are built, the relocation will only take a couple of days, and thus, the temporary transit allowance is adequate. The APs will

59 benefit from the temporary transit allowance provision if they could move into their new houses timely.

8.2.2 Rehabilitation Plan for Affected Households by Land Acquisition

108. The construction of the Project will permanently acquire 100 mu collective-owned lands, and affect 1 village 30 households or 200 persons. The proportion of land to be acquired only account for small proportion (1.25%) of the rural collective land, the impact of land acquisition to the rural collective is relatively small. However, the land to be acquired for the Project accounts for 19.56% of the total farmland area and 3.70% or CNY 692 of the family income for the APs. The impact of the land acquisition to the affected households is relatively significant in terms of farmland area, but less significant in terms of family income share. As the affected area is getting industrialized and urbanized, the local people are not relying on the land, and the farmland of the area has been affected by high salt sea water, which severely affected the agricultural production. More and more people are engaging in service industry, seasonable labor and in enterprises. After land acquisition, no allocation of land will be made. All compensation for land loss will be directly paid to the APs to be used for the tertiary industry development for the APs to fully recover from the land losses. Compensation standards will be in accordance with relevant laws and regulations. In addition, the local government will follow the regulation of “Temporary Method of Social Insurance for the Farmers Whose Land Acquired in Fangchenggang City” to solve the future livelihood of the farmers.

109. The overall objective of income rehabilitation plan is to ensure that all APs losing their means of livelihood (in this case their land or working place) to the Project are able to at least maintain their pre-project levels of income and living standards. The income restoration plan applies to all 30 affected families by permanent land acquisition and 146 affected families by temporary land occupation.

110. The household survey indicates that 41.18% of their income comes from agricultural activity in Sha’ao Village. Due to permanent land acquisition, the associated income loss of the APs from the farmland loss is 3.70% of their total family income or CNY 692 per household per year, see Table 8-3 for the income loss Analysis due to permanent land loss. Therefore, the loss caused by land acquisition is significant.

Table 8-3: Income Loss Analysis of Permanent Land Acquisition for the AHs Annual Annual Total Total Farm HH Income Farmland HH Farmland Farmland land Income Loss Villages Loss Income before LA after LA Loss before Ratio Ratio (%) Loss (mu) (mu) (mu) LA (%) (CNY) (CNY) Sha’ao 18,706. 153.40 123.40 30 19.56 692 3.70% Village 00 Total 19.56 18,706. 153.40 123.40 30 692 3.70% 00

111. The permanent land loss will affect the livelihood of a family. Of the total 30 affected households and 200 persons to be affected by permanent land acquisition within the Project area, 110 persons are in labor force who need income rehabilitation. At the time to acquire the land from the farmers, the future livelihood of the farmers

60 should be also considered. According to the result of the surveys and consultation, the farmers do not want to engage in agricultural activities any more, and would like FMG provide them business support, employment opportunities and technical training assistance.

112. The following income rehabilitation measures are recommended to be carried out to improve their income: i) providing technical skill training and employment opportunities to the APs, especially for the job requiring large amount of labor forces; ii) development of service industry, such as cloth selling, grocery store, food catering service, hairdressing salon, dry cleaning, motorcycle transportation service in urban districts, taxi service, food catering and entertainment service, hotel service, tourism business, and other businesses; iii) provision of social and medical insurance; iv) providing employment opportunities generated by the construction and operation of the Project (urban sanitation worker, enterprise employee and maintain security etc.). The urbanizations brings new ideas, notion, better living environment and job opportunities for the local farmers, hence they can start commercial activities.

113. The compensation for the permanent land loss and standing crops will be paid directly to the APs at the amount of CNY 1.808 million , with average at CNY 60,270 per household (including paddy land, wood land and waste land). The APs could use the compensation payment for other tertiary industry development. As a result, the APs will significantly benefit from the land acquisition. According to the survey conducted among the APs, 100% or 200 APs in labor force are willing to use the compensation for land loss and standing crops compensation as seed money to develop the tertiary industries. Women are more suitable for the above-mentioned employment and income generating opportunities. Actually they account for about 47.52% of the 393 labor force, they will benefit the same from the income rehabilitation program as men. After the affected villagers get their compensation payment, they will be engaged in the new businesses in Fangcheng District and Jiangshan peninsula. During the arrangement of new employment opportunities, FMG pays great attention to the production resettlement of the affected women, especially the establishment of business for “hairdressing salon”, “grocery store”, “food catering service”, “laundry” “transportation”, “handicraft workshop”, “sales of tourism products”, etc. which are very suitable for the employment of women.

114. Based on the socioeconomic survey and discussion/consultation results with the APs, the affected 30 households who need livelihood rehabilitation will set up “grocery store” (3 households/ 18 APs), “food catering service” (5 households/ 35 APs), “hairdressing salon” (2 households/ 13 persons), “dry cleaning” (4 households/ 28 APs), “motorcycle transportation service for urban districts” (3 households/ 20 APs), “clothing shop” (7 households/ 46 APs), and tourism products sales 6 households/ 40 persons) to rehabilitate the loss of income from agricultural farming. Since the APs will be receiving a sum of compensation at over CNY 60,267 per household on an average, the amount is sufficient for them to start a new business. The APs will use the compensation payment to establish their new business which is expected to take about two to six months. The income of the APs to be generated from the new businesses could be stabilized two months after the opening of the businesses. They will use CNY 20,000 to CNY 50,000 of their compensation payment to invest in their new businesses and the remaining fund will be used for improving their living conditions, deposit into bank for monthly interest, buying social insurance and circulating fund or for education of their children. Table 8-4 provides the income, compensation received and income rehabilitation measures of the affected households. Based on the detailed measurement survey, the following information will be updated and will be represented at the household level. Of the total affected households by permanent land acquisition, 6 households will lose over 25% of their

61 farmland, their remaining farmland totals at 23.5 mu, with average remaining farmland of 3.91 mu per household. They will get a total of CNY 406,800 compensation payment for the farmland loss. In addition, they will also get cash compensation for the loss of wood land and waste land at CNY 253,120. Thus, in total, they will get CNY 109,990 per household for the compensation of land loss at average. Of the households, they have 23 persons in labor force. They will take the income rehabilitation measures listed in Table 8-4. Table 8-5 provides the input and output for each scheme which demonstrate that they will benefit from the rehabilitation measures with increased income than before. Based on the detailed measurement survey, the following information will be updated and will be represented at the household level.

Table 8-4: Income, Compensation Received and Rehabilitation Measures of AHs Current Compensation Annual Received for Village Rehabilitation Measures Income Land Loss (CNY) (CNY) 30 HHs: Grocery store (3 HHs), hairdressing salon (2 HHs), food catering service (5 HHs), Sha’ao 18,706 1,717,600.00 laundry (4 HHs), transportation service (3 HHs), clothing shop (7 HHs), sales of tourism products and relevant sector (6 HHs) Total 18,706 1,717,600.00

115. Since the APs will be receiving a sum of compensation at CNY 60,270 per household at an average from compensation for land loss. The amount is sufficient for them to start a new business.

116. For the “grocery store””, the initial investment for each business establishment is CNY 30,000, of which CNY 10,000 is used for annual space rental cost and CNY 20,000 for purchase of goods. It is expected that the number of customers will be about 50 persons per day and the average expense is CNY 16.0/day. As a result, the annual gross income is CNY 146,000. With deduction of the total annual expenditure of water and electricity bills at CNY 6,000 (equivalent to CNY 500/month), employees’ salary at CNY 9,600 (one employee), various business taxes and other costs at CNY 10,000 and investment at CNY 40,000, it is expected that the annual net income is CNY 70,800 (CNY 5,900 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

117. For the “food catering service” (regular fast food and rice noodle house) employment option, the total initial investment is CNY 30,000, of which CNY 20,000 is used for annual space rental cost (if shop owner, the rental cost will be the investment cost), CNY 6,000 for purchase of equipments, and CNY 4,000 for circulating fund. The estimated number of customers is 80 persons and the average expense of the business is CNY 7.0 per day per customer. As a result, the total annual gross income is CNY 102,000. With deduction of the annual total expenditure at CNY 30,000, employees’ salary at CNY 9,600 (one employee), CNY 9,600 as water and electricity charge (CNY 800 per month equivalent), CNY 10,000 as various business taxes and other costs (CNY 840 per month equivalent), the annual net income will be CNY 43,000 (CNY 3,580 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

62 118. For the “motorcycle transportation service” option, the total initial investment required is CNY 12,000, of which CNY 9,000 is used for the purchase of motorcycle and CNY 3,000 for the cost of the business charge. The estimated passengers are 30 persons every day. The transportation price is set at CNY 5.00 per person. The total annual gross income will be CNY 54,750. With the deduction of total annual expenditure at CNY 21,900 including CNY 3,000 as annual management charge, CNY 18,000 as gasoline consumed, and CNY 900 as depreciation of vehicle, the annual net income will be CNY 32,850 (CNY 2,740 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme. The Shao’ao Village is at the edge of the Maoling Industrial Park, the development of the industrial park and increased flow of population will bring many and good opportunities to the APs for the tertiary industry development.

119. For “hairdressing salon”, the total initial investment is CNY 30,000, including CNY 10,000 as annual space rental cost, CNY 6,000 as purchase of equipments, CNY 10,000 as decoration and 4,000 as circulating fund. It is estimated that 15 customers per day. The average gross profit is CNY 15 for each client. As a result, the annual gross income is CNY 82,125. With deduction of total investment and other expenditures at CNY 30,000, water and electricity fee at CNY 7,200 (i.e. CNY 600 per month equivalent), employee’s salary at CNY 9,600 (one employee), and various business taxes and other costs at CNY 8,000, the annual net income is expected at CNY 27,325 (CNY 2,280 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme. All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme. The Shao’ao Village is at the edge of the Maoling Industrial Park, the development of the industrial park and increased flow of population will bring many and good opportunities to the APs for the tertiary industry development.

120. For “laundry”, the total initial investment is CNY 40,000, including CNY 10,000 as annual space rental cost, CNY 30,000 as purchase of equipments. It is estimated that 17 clients every day. The average gross profit is CNY 20. As a result, the annual gross income is CNY 124,100. With deduction of total investment and other expenditures at CNY 40,000, one employee’s salary at CNY 9,600, water and electricity fee at CNY 15,000 (i.e. CNY 1,300 per month equivalent), and various business taxes and other costs at CNY 8,000 (equivalent as CNY 660 per month), the annual net income is expected at CNY 51,500 (CNY 4,290 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme. The Shao’ao Village is at the edge of the Maoling Industrial Park, the development of the industrial park and increased flow of population will bring many and good opportunities to the APs for the tertiary industry development.

121. For “retail clothing shop” (middle level) option, the total initial investment is CNY 24,000, including CNY 16,000 as annual space rental cost, CNY 8,000 as purchase of clothing. It is estimated that 20 clothes will be sold every day. The average gross profit is CNY 12. As a result, the annual gross income is CNY 87,600. With deduction of total investment and other expenditures at CNY 24,000, one employee’s salary at CNY 9,600, and various business taxes and other costs at CNY 6,000, the annual net income is expected at CNY 48,000 (CNY 4,000 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme. The Shao’ao Village is at the edge of the Maoling Industrial Park, the development of

63 the park and increased flow of population will bring many and good opportunities to the APs for the tertiary industry development. 122.

123. For those who choose to be engaged in sales of tourism products and tourism service in the tourism development zone, their personal investment ranges from CNY 10,000 to CNY 60,000. If the APs engage in regular sales of tourism products or tourism service, the investment is relatively less. However, due to the large floating population in tourism areas of Fangcheng District and Jiangshan Peninsula, the profits could be more substantial. If the APs engage in high-class tourism products and services, the invest will be relatively large, but the revenue will also be significant, with bigger risks of course. For the initial stage of the business, the government should guide the APs to be conduct investment analysis to reduce risks.

124. For the above tertiary industry development as livelihood rehabilitation measures, the APs could use the compensation of for land loss and standing crops as initial investment. As each household could get compensation for land loss, it is adequate for them to invest in their new businesses.. The above measures will be more meanful that the information will be presented at the household level based on the DMS in Junuary 2011. The affected village is located at the edge of the Maoling Industrial Park. In recent few years, the industrial park as well as the Fangcheng District has been developed in a fast speed. With large number of population flowed in and urbanized, the above service businesses are also in great demand. With proper guidance and assistance by the Fangcheng District Government and Maoling Township Government, it is expected that the APs will successfully establish their businesses.

125. In order to restore their livelihoods and income of the APs, FMG will work with relevant departments, owners of enterprises, Labor and Social Security Bureau, and district government to make the necessary arrangements to ensure that those affected people who could find the jobs listed in Table 8-6, or assist the APs to engage in the tertiary industries as presented in Table 8-5.

64 Table 8-5: Engagement of the APs in Tertiary Industries No. of AHs Initial Expected Net Type of Business (APs) to Be Investment Income Engaged (CNY) (CNY/Year) Grocery Store 3 (18) 30,000 70,800 Food catering service 5 (35) 30,000 52,600 Hairdressing salon 2 (13) 30,000 36,925 Laundry 4 (28) 40,000 61,100 Transportation service 3 (20) 12,000 51,800 Clothing shop 7 (46) 24,000 54,000 Sales of Tourism products 6 (40) 10,000—60,000 40,000—120,000 and relevant sector

TOTAL 30 (200) 24,900－27,700 55,200－59,600

126. For the people who will lose their land temporarily, standing corps compensation will be paid directly to affected people in cash. As the land will be temporarily occupied section by section for a maximum of one month to three months period, the compensation for one year standing crops loss paid to the APs will be sufficient. The land restoring fee which is included in the engineering cost will be paid to the contractors to restore the land into its original condition and keep the same quality as before. The Project IA will take the responsibility to ensure that the fund for such measures will be taken to restore the land into its original conditions by the contractors. The Project construction will generate 1,060 person-years short-term employment opportunities. The APs will be given priority to be employed during the 2 years project construction period with income earnings at over CNY 1,000 per month. Thus, the APs will benefit from income gains through the construction employment generation in comparison with the standing crop loss ranging from CNY 700 to CNY 4,481 per person, thus we could see that the APs will gain ranging from CNY 19,520 to CNY 23,300 per person per year during the Project construction period. It is expected that the temporary income loss can be sufficiently offset by the income earnings from the employment generation.

8.2.3 Employment Opportunities Generated by the Project

127. With the implementation of the Fangchenggang City Maoling WWTP and Sewerage Network Project (Phase I) will create more employment opportunities and priority will be provided to the affected labors. Such Project will improve the urban infrastructure construction, and could also stimulate the flow of people and goods, and promote the local economic development. In addition, Fangchenggang has been chosen for the mega iron and steel plant with an annual capacity of 10 million tons for the near-term, 20 million tons for the medium-term and 30 million tons for the long-term. The mega plant, together with the planned large-scale upstream and downstream industries and the expansion of the port and regional cooperation will create tremendous employment opportunities. Thus, the WWTP project construction in the city will facilitate to attraction of outside investment, increase the flow of population to the industrial park for employment. The employment priority will be given to the affected labor force. Table 8-6 provides the annual job opportunities and estimated salary of the potential job positions in next five years. The FMG will coordinate with relevant departments, including the owners of the job positions, labor and social security bureau and district government to arrange the APs to be employed for these job positions. For the 456 persons in labor force to be affected, the APs will get employment before or immediately after they lose their land. The government

65 will assign the quotas to the owners of the job positions to ensure that the APs will be able to secure such jobs. In comparison with their income from agricultural farming before land acquisition, the income of the APs from the jobs available in Table 8-6 will be much higher than before land acquisition.

Table 8-6: Annual Job Opportunities Created by Maoling WWTP and Sewerage Network Project (Phase I) and Urban Development Average Monthly Annual Income Annual Income Type of Job Job Remark Earning Earning (CNY) Opportun (CNY) ities (No.) Construction Mainly for the house and indoor 6,000 1,500―4,000 18,000―36,000 construction and road decoration construction Job opportunities Temporary during the Project workers construction phase during the 9,000 1,200―1,500 14,400―18,000 include security guard Project on site, porters, construction construction workers, etc. Mainly shops within the city or along the street, real estate Sales person 600 1,500―2,000 18,000―24,000 sales person, and shopping plaza sales persons Passenger transport and cargo transport in Transportation 400 2,500―3,000 30,000―36,000 Fangchenggang City, and taxi drivers. Food and catering service, hotel, and Service 1,500 1,000－1,500 10,800－18,600 domestic house keeping Secretaries of Office staffs 550 1,000－2,000 12,000－24,000 corporate and enterprises Beauty and Other hairdressing salon, commercial 4,000 1,500－3,000 18,000－36,000 clothes, grocery, business maintenance, etc. Total 22,050

8.2.4 Social Insurance

128. In addition to the above proposed income rehabilitation measures, Fangchenggang City Government will provide social security system for rural APs in terms of social pension insurance, medical insurance and employment insurance to ensure the livelihood of the APs. The Guangxi Zhuang Autonomous Region Government issued “Method on Implementing Social Security System for Rural APs in Guangxi Zhuang Autonomous Region (Trial)” in March 2008. Based on the

66 document, Fangchenggang City Government has issued “Method on Implementing Social Security System for Rural APs in Fangchenggang City”, which states clearly on issues relating to the social pension insurance, medical insurance and employment insurance for rural APs whose land is acquired. For the social insurance, 30% contribution will come from the local government and 70% from rural collective and farmers (The land loss farmers pay 20% based on the 40% of the average wage of the urban workers in last year). All APs would like to pay for the social insurance as it will ensure their livelihood for their whole life in future.

129. In light with the Method, the social insurance fund for rural APs will be raised from APs, collective and local government, among which the percentage contributed by APs and collective will be no more than 70% and the percentage contributed by local government will be no less than 30%. The contribution of APs and collective mainly comes from land compensation payment. The contribution of local government comes from income generated from the state-owned land use rights transfer. Rural APs who participate in the social insurance and perform the obligation of payment will enjoy pension per month over the age of 60. Based on the survey, the majority of the APs are willing to participate in social insurance program. As no formal calculation formula and documents are available, the exact amount to be contributed by the APs to the social insurance program, and the amount of pension to be received by the APs will be calculated based on the specific cases of the APs by the social insurance agencies during the RP implementation.

130. The rural APs will be covered by the local medical care insurance according to the residence management principle. The rural APs whose registration has been changed to unemployed urban residents will be covered by urban residents’ basic medical care insurance. The rural APs whose registration remains the same as before will be covered by new-type cooperative medical care system. Migrant workers who are still registered as rural residents as well as urban employers who are registered as urban residents will be covered by urban residents’ basic medical care insurance. Self-employed will also be covered by urban residents’ basic medical care insurance. Furthermore, APs who live under the urban residents’ MLG or rural poverty MLG will be covered by local urban residents’ MLG scheme or rural poverty MLG scheme, respectively.

8.2.5 Project Related Income Generation Opportunities

131. During the Project construction phase, APs can seek some income generation opportunities, mainly providing services related to the Project construction, such as renting spare houses (if available) to the construction contractors as temporary office or to the construction workers as residence, operating grocery kiosks, and providing food, cigarettes and breweries to the construction teams. Also during the construction period, the PMO and IA will offer 1,060 person-years temporary unskilled employment job opportunities to the APs, such as excavation for pipeline and structures and soil and earth transportation.

132. During the Project operational period, the APs with suitable qualifications will be employed and receive on-the-job training. Women and the poor will be given priority to be employed by the Project. After the construction of the Project has been completed, it is planned that 57 public welfare position jobs shall be provided for the APs based on discussion with the IA: 10 landscape workers, 27 wastewater treatment operation and maintenance, 10 safeguard and 10 cleaners. Such employment to be generated by the Project will be provided to the APs as priority if they apply for. The ratio of employment for men and women will be 1:2. The salary will be over CNY 1,500 per month. As a result, the APs could get access to additional income

67 generation opportunities and additional income. Therefore, the APs will benefit from the resettlement of the Project.

8.2.6 Provision of Technical Training to the APs

133. In recent years, with the rapid development of Fangchenggang City’s economy and the establishment of the Beibu-Gulf Economic Development Zone, the improvement of urban infrastructure and sectors in good advantages have experienced fast development in Fangchenggang City, in particular the accelerated development of iron and steel, metallurgy, petrochemical, energy, building material, electronic products, pharmaceuticals, ports, real estate, services and tourism industries which will generate a lot of job opportunities. The technical workers and social service labors will be in shortage.

134. In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the RO and IA will cooperate with the departments of Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the relocated APs. The training of technical and management skills will be consistent with the district economic features, requirements of the labor market and the enterprises to ensure that the training is practical, efficient and targeted.

135. By taking into consideration of lack of working skills for the major labor force of the affected households, especially women, the IA will ensure that at least 50% of the trainees will be females. After training of occupational skills, the APs could get jobs in the city. A total of about CNY 220 per person has been budgeted as training cost to cover the cost of training provided to the APs. Each AP will get one-time training for the field they choose. The female APs and ethnic minority APs will enjoy the same training budget with the male APs at the training budget.

136. The training will be carried out twice a year, commenced from April 2011 and last till April 2013. The training will be implemented in association with local district government, VC, WF, and vocational education department. The training will be provided to all APs with labor force, especially the women. For each training, at least 50% of women should be included. The training includes:

(1) Public security guard, cleaning, public aesthetic landscaping, maintenance of public facilities, management of parking lot, and others; (2) Horticulture, sewing and knitting, beauty and hairdressing; (3) Maintenance and repair of motorcycle, vehicle, and electronic products; (4) Car decoration and management of cleaning and washing accessories; (5) Food, catering and hotel services, and domestic servant services; and, (6) Sales of products, small business registration and operation.

8.2.7 Rehabilitation Plan of Ground Attachments

137. The compensation of ground attachments, including infrastructures and special facilities will be based on the replacement value according to the relevant documents of compensation standards. Compensation in cash will be paid to the affected owners to reconstruct the ground attachments.

138. The units with property rights will be in charge of the rehabilitation and reconstruction. The rehabilitation measures of the ground attachments should be planned in advance. In practical operation, these measures should be suitable to local conditions to ensure safe, efficient, timely, and accurate, and try to minimize impacts

68 on the local residents.

139. For the relocation of affected infrastructures and special facilities, the relocation should be carried out according to the Project construction maps and drawings. The relocation of the affected municipal infrastructures and special facilities should be reduced as much as possible on the premise that the constructions do not affect the residents.

8.3 Special Concerns during Resettlement Process

8.3.1 Gender Issue

140. According to the Chapter of “Women and Economy” documented in Women’s Development Plan of Guangxi Zhuang Autonomous Region (2001-2010), it clearly stated that “The rights of women for work should be protected, it should be ensured that women enjoy the equal right with men on economic resources, the discrimination to women should be forbidden, women and men should have equal status for employment, and women’s labor rights should be protected”. Thus, women have equal entitlement and rights with men for employment and training in the Project.

141. The household surveys showed that women from AP families are generally lacking of working skill other than housework skill. They are in inferior position of looking for job opportunities when competing with men. They usually work outside as seasonable labors or run a small business. Women take more responsibility for the family especially for those with female as the head of a household. The future welfare of women to be affected is important. Therefore, special attention will be paid to women’s special concerns, such as compensation payments, training programs, and other assistances, to reduce any special social risks caused by the implementation of this Project.

142. Women will be eligible, on an equal basis, for all compensation payments, training programs and other assistances to be provided. The reconstruction house land allocated for resettlement and compensation payment should belong to both wife and husband of a household. In order to protect the properties of the APs, both the names of wives and husbands should be written on the property certificates of houses. In order to ensure this, the IA will carry out explanation and propaganda work to the affected women and closely involve them in the resettlement process.

143. The IA, RO, WF, and VC have reached agreement that WF will involve in guiding consultation and public participation for income rehabilitation activities in combination with their current ongoing programs so that female APs can make sufficient earnings for a sustainable livelihood after house demolition.

8.3.2 Assistance to Vulnerable Households

144. Although there is no vulnerable group identified during the Project planning period, the local Civil Affair Bureau and Human Resource and Social Security Bureau will be responsible for the vulnerable households to be included into the social safeguard program, including households enjoying five guarantees, households living under MLG, households with disabilities, and households with female-headed, identified as vulnerable groups if identified during the Project implementation phase. The local Civil Affair Bureau will provide CNY 200/month-person to these vulnerable households. A minimum earning of CNY 670/month (minimum wage standard) is guaranteed if the vulnerable households could find jobs generated by the Project. The following provisions will be provided to vulnerable groups to rehabilitate their income:

69 1) training without charge will be provided to them to increase the knowledge and skills of the vulnerable groups; 2) provision social safeguard program; 3) provision of employment opportunities generated by the Project and provision of employment information to the vulnerable groups; and 4) provision of micro-credit to them by the local rural credit union or local banks. The IA and the local government will assist the APs to get access to micro-credit from local banks.

145. During the relocation stage, the IA (FCFDUCICL) and local government will provide in-kind assistance for the vulnerable groups in the following aspect:

- For the elderly or disabled, priority should be provided to them during the selection of the location of reconstruction house land; - Provide labor and transportation assistance to the vulnerable groups without charge.

70 IX. COST ESTIMATES

9.1 Compensation and Resettlement Costs

146. The resettlement costs are included in the overall budget of the Project. The total cost of resettlement for the Project is estimated to be CNY 5.5863 million, equivalent to US$ 821.5 thousand in 2010 prices, including 15% contingencies (physical and price). The estimated costs include compensation for collective land, residential structures, auxiliary, basic infrastructures and special facilities, other costs, land-related taxes, and contingencies. The detailed cost estimates of resettlement are presented in Table 9-1. The summary cost is presented in Table 9-2.

Table 9-1: Detailed Cost Estimates of Resettlement Amou Unit Price Estimate No. Item Unit nt (CNY) Cost (CNY) 1 Permanent Land Acquisition 1,808,000.00 1.1 Collective Land mu 100.00 18,080.00 1,808,000.00 1.1. mu Paddy land 30.00 18,080.00 542,400.00 1 1.1. mu Wood land 65.00 18,080.00 1,175,200.00 2 1.1. mu Waste land 5.00 18,080.00 90,400.00 3 Temporary Land mu 2 150.00 172,381.50 Occupation 2.1 Paddy land mu 30.00 746.00 22,380.00 2.2 Vegetable land mu 4.50 3,173.00 14,278.50 2.3 Dryland mu 15.00 700.00 10,500.00 2.4 Fish pond mu 3.00 4,481.00 13,443.00 2.5 Wood land mu 90.00 1,242.00 111,780.00 2.6 Waste land mu 7.50 0.00 0.00 3 Residential House Demolishment 500,920.00 3.1 Residential House Demolishment 383,440.00 3.1. Brick-concrete m2 542 600.00 325,200.00 1 3.1. Brick-wood m2 92 500.00 46,000.00 2 3.1. Simple m2 51 240.00 12,240.00 3 3.2 Relocation Allowance 117,480.00 3.2. Relocation allowance m2 685 8.00 5,480.00 1 3.2. Temporary transit allowa perso 28 4,000.00 112,000.00 2 nce n/yr. 4 Ground Attachment Demolishment 233,590.00 4.1 Toilets No. 5 150.00 750.00 4.2 Fruit trees mu 8 18,080.00 144,640.00 4.3 Chicken house m2 10 100.00 1,000.00 4.4 Pig pen m2 35 100.00 3,500.00 4.5 Methane gas pond No. 1 20,000.00 20,000.00 4.6 Drinking wells No. 5 2,200.00 11,000.00 4.7 Electricity pole No. 5 2,500.00 12,500.00

71 Amou Unit Price Estimate No. Item Unit nt (CNY) Cost (CNY) 4.8 Rural road m2 260 20.00 5,200.00 4.9 Satellite dish HH 5 1,000.00 5,000.00 4.10 Broadcasting line m 1,000 30.00 30,000.00 Costs of Basic LAR 2,714,891.50

5 Other Costs 284,161.64 5.1 RP Preparation 100,000 100,000.00 5.2 Administration costs 2.1% of LAR costs 57,012.72 5.3 M&E costs 1% of LAR costs 27,148.92 5.4 Training costs 100,000 100,000.00 6 Land-Related Taxes 2,179,960.76 Land Administration 6.1 2.8% of LA costs 50,624.00 Costs Farmland 127,500.0 6.2 Reclamatio Paddy land ha 2 255,000.00 0 n Fee Newly Added 2 66,666. 6.3 m 28.00 1,866,666.76 Construction Land Use 67 6.4 LA Labor Farmland ha 2 1,500.00 3,000.00 6.5 force Fee Non-farmla ha 4.67 1,000.00 4,670.00 nd 7 Contingencies 407,233.80 7.1 Physical Contingencies 10% of LAR costs 271,489.20 7.2 Price Contingencies 5% of LAR costs 135,744.60

TOTAL 5,586,247.70

Table 9-2: Summary Resettlement Costs No. Compensation Project Estimate Cost (CNY) 1 Permanent Land Acquisition 1,808,000.00 2 Temporary Land Occupation 172,381.50 3 Demolishment of Structures 500,920.00 4 Demolishment of Ground Attachments 233,590.00 5 Other Cost 284,161.64 6 Land-Related Taxes 2,179,960.76 7 Contingencies 407,233.80 Total 5,586,247.70

9.1.1 Annual Budget

147. According to the Project schedule, the Project construction will take about 24 months to complete between April 2011 and April 2013. The annual cash flow is estimated to be 50% or CNY 2.7932 million in 2011, 40% or CNY 2.2345 million in 2012, 10% or CNY 558.6 thousand in 2013. Table 9-3 provides the annual budget of resettlement cost.

72 Table 9-3: Annual Budget of Resettlement Cost 2011 2012 2013 Total Total Budge 279.32 223.45 55.86 558.63 ( CNY 10,000) Proportion of 50% 40% 10% 100% Total Budget (%)

9.2 Flow of Fund

148. Fund related to resettlement will be distributed through the following channels (See Table 9-4):

Table 9-4: Flow of Fund Permanent land acquisition of → FCFDUCICL → RO → VC → APs collective-owned land

Temporary land → FCFDUCICL → RO → VC → APs occupation

Residential structures → FCFDUCICL → RO → VC → APs demolishment

Auxiliaries → FCFDUCICL → RO → VC → APs

Relocation allowance → FCFDUCICL → RO → VC → APs

Basic infrastructures and → FCFDUCICL → RO → Owners special facilities

Investigation and design → → FCFDUCICL Design institute cost

Office administration → → FCFDUCICL LAR implementation agencies costs

Training cost → FCFDUCICL → Training institutions

M&E → FCFDUCICL → IMA

73 X. LAR IMPLEMENTATION SCHEDULE

10 Principles

149. The resettlement schedule for land acquisition, structure demolition and resettlement for the Project will be coordinated with the respective construction schedule. Based on the time schedule of the Project, the land acquisition and resettlement schedule have been developed, reflecting the linkage and consistency between the time schedule of resettlement/land acquisition and civil works construction tasks.

150. In order to ensure that all aspects of the RP can be achieved, land acquisition will start at least one month before construction. The affected persons can move to new resettlement houses at least one month before old structures are demolished. Before the land acquisition and resettlement, a final measurement survey will be conducted in the affected village, and the contracts with each affected household will be negotiated and signed. The disbursement of compensation should be sufficiently paid. Also, arrangements for land acquisition and structure demolishment will be established before LAR proceeds.

10.1 LAR Implementation Schedule

151. Resettlement implementation will be scheduled in stages to coincide with the overall Project schedule between May 2011 and May 2013. The land acquisition will start from April 2011 to April 2013. It is planned that there will no commencement of civil works until all compensation is paid and all livelihood rehabilitation measures are in place. “In place” means that all arrangements are made to commence rehabilitation and APs are registered for these. It is planned that the land acquisition shall be completed before the start of Project construction.

152. However, before land acquisition and structure demolishment, a final measurement survey will be conducted in the affected village. The compensation contracts will be negotiated and signed. Also, resettlement arrangements should be made before LAR proceeds. Based on the detailed measurement survey (DMS) in January 2011, the RP will be updated and submitted to ADB for review and approval prior to commencement of land acquisition and resettlement and award of contracts.

153. The LAR schedule has been divided into four stages:

1) Land Acquisition and Compensation Planning

- Apply for and receive “Planning Land Use Certificate”, “Construction Land Use Certificate”, and “Structure Demolition Certificate”; - Conduct detailed measurement surveys of the affected area and houses to determine the specific losses eligible for payment of compensation; - Identify poor and vulnerable APs; - Finalize compensation/resettlement strategies in consultation with the local governments, APs and their representatives; - Conduct public information/consultations on RP; - Sign contract; and, - Finalize relocation area.

2) Land Acquisition and Resettlement Activities

74

- Provide compensation payment; - Construct reconstruction house land, new house construction, infrastructure and other facilities; - Transfer APs to new location; and, - Demolish residential structures and auxiliaries.

3) Income Restoration

- Provision of employment opportunities during the Project construction and operation phases; - Assistance in the identification of employment and business opportunities for APs in the local enterprises and businesses; - Targeted training; - Promotion and development of tertiary industry; and, - Special attention paid to the vulnerable groups.

4) Monitoring

- Hire monitoring agency; - Approve TOR by the Bank; - Monitor LAR; - Monitor income restoration program; - Monitor poverty reduction program and assistance provisions to vulnerable groups; and, - Conduct external evaluation of the Project.

154. The resettlement supervision milestone is presented in Table 10-1. Based on the project schedule of civil works, the resettlement plan preparation will be continue after the PPTA stage, and the land acquisition and resettlement are planned to commence in April of 2011 and complete in April 2013. The RP planning and implementation schedule with time bound activities is shown in Figure 10-1.

Table 10-1: Resettlement Supervision Milestone No. Resettlement Target Responsible Deadline Status Tasks Agency 1. Disclosure 1.1 - Information 176 AHs IA (FCFDUCICL) and Dec 2010 Planned booklet and 827 RO APs 1.2 - Approved RP 1 township FMG, District Dec 2010 Planned and 1 Government, and RO village 1.3 - RP posted on FMG, PMO, IA and Dec 2010 Planned ADB website ADB 2. Approval of $821.5 FMG, District Dec 2010 Planned RP and thousand Government, and RO Budget (Recheck) 3. Agreements 3.1 - 1 township FMG, District April Planned Compensation and 1 Government, FLRB, 2011 rates village FHDAO, RO, VC, PMO, and IA

75 No. Resettlement Target Responsible Deadline Status Tasks Agency 3.2 - Households 827 APs PMO, IA, FLRB, April 2011 Planned FHDAO, RO, and VC – April 2013 4. Detailed Plans 3.1 - Community 1 village PMO, IA, DI, and RO April 11 – Planned rehabilitation groups April 13 plans 3.2 - Plan for During the PMO, IA, FMG, April 10 – Planned vulnerable planning Fangchenggang Civil April 13 group if stage, there Affairs identified is no Bureau/Fangchengg vulnerable ang Labor & Social group Security Bureau identified, but the identificatio n will be continued from the Project implementat ion till the project completion 3.3 - Training All AFs PMO, IA, RO, April 11 - Planned Plans for APs training institutions April 2013 6. Establishmen PLG, PMO, IA, RO, May 10 – In process t of FLRB, FHDAO, Dec 12 Implementatio Others n Capacity 7. Monitoring & Evaluation 7.1 - Baseline 70 HHS or PMO, IA, and DI April-May Completed survey 329 APs 10 7.2 - Set-up As per RP PMO and IA Jan 11 – Planned internal April 11 supervision 7.3 - Hiring As per RP PMO Jan 2011 Planned external monitor 7.4 - Internal Quarterly PMO, IA, and RO June 1st Report monitoring 2011 reports 7.5 - External Semi-annua IMA Jul 11 1st Report monitoring l July 13 2nd Report reports 7.6 - Resettlement 1 report IMA All work Completion will be Reports completed in July 13 7.7 - Evaluation 4 annual IMA Dec 11 1st Report reports reports Dec 12 2nd Report Dec 13 3rd Report

76 No. Resettlement Target Responsible Deadline Status Tasks Agency Dec 14 4th Report 8. Documentation of IA, RO, VC Ongoing Consultation 9. Documentation of IA, RO, VC Ongoing Grievances 10. Flow of Funds / Compensation 10.1 - To IA 50% FMG March 11 Depending 10.2 - To affected “ “ IA and RO April 11 – VC “ April 13 10.3 - To affected “ “ IA and RO April 11 – households “ April 13 AFs = Affected Families; FCFDUCICL = Fangchenggang City Fangcheng District Urban Construction and Investment Co., Ltd.; FMG = Fangchenggang Municipal Government; FHDAO = Fangchenggang House Demolishment Administration Agency; FLRB= Fangchenggang Land Resources Bureau; DI = Design Institutes; IA = Implementation Agency; IMA= Independent Monitoring Agency; PLG= Project Leading Group; PMO = Project Management Office; and RO = Resettlement Office.

77 Figure 10-1: RP Planning and Implementation Schedule

78

79 XI. INSTITUTIONAL FRAMEWORK

11.1 Project Resettlement Organizational Set-up

155. The project leading group is established within the FMG with the PMO as the secretariat communicating with the other agencies concerned. As previously mentioned, FCFDUCICL is the project Implementation Agency (IA). Under the IA, there is a resettlement office, responsible for land acquisition and resettlement. The organizational structure is shown in Figure 11-1.

156. The IA will play a key role during the resettlement process. However, besides the IA, there are other related institutions who will be also involved in the resettlement activities. All these institutions and the staffing are presented in Table 11-1.

Table 11-1: Resettlement Institutions Involved and Staffing Institutions Staffing Project Leading Group 2 males & 1 female with experience, Government officers, education level above college Fangchenggang Project Management Office 2 males & 2 females with experience, (PMO) Government officer, engineering technicians, education level above college Fangchenggang Land Resource Bureau 2 males with experience, (FLRB) Government officer, education level above college Fangchenggang House Demolishment 8 males & 3 females with experience, Administration Office (FHDAO) Government officer, education level above college Fangcheng District Government (FDG) 1 male & 1 female with experience, Government officer, education level above college FCFDUCICL 5 males & 2 females with experience, Engineering technicians and management staff, education level above college RO 7 males & 6 females with experience, officers and representatives of APs, education level bovver college VC 5 males & 5 females with experience, community officials Legal Advisory Office 1 female lawyers DI 2 male senior engineering technicians External Monitoring Agency 1 resettlement specialist

80 Figure 11-1: Organizational Structure of LAR Implementation

Project Leading PMO Group

Fangcheng Fangchenggang Fangchenggang FCFDUCICL - Legal Advisory District DI HDAO LRB IA Office Government

IMA

Engineering Office Finance Department Administration Office

Resettlement Office

VC

APs

81 11.2 Responsibilities

Table 11-2: Responsibilities of Agencies Institutions Responsibilities PLG - Lead, organize, coordinate and formulate policies for the project. - Review the implementation of the RP. - Conduct internal supervision and inspection. - Make decision for major problems during land acquisition and resettlement process.

PMO - Perform the overall coordination and organize the project activities. - Coordinate the preparation and implementation of the LAR program. - Organize and coordinate the preparation of RP. - Provide assistance to women and other vulnerable groups. - Serve as a liaison among ADB, IA and various agencies concerned.

FCFDUCICL - IA - Apply for Land Use Planning Certificate and Land Use Construction Certificate to LRB. - Apply for house demolition certificate. - Disburse land acquisition and resettlement fund and supervise the usage. - Direct, coordinate and supervise the implementation schedule of the RP. - Organize and implement internal supervision, determine independent external supervision agency, coordinate internal and external monitoring activities. - Report the schedule of land acquisition and resettlement, fund usage and implementation status periodically to ADB. - Provide assistance to women and other vulnerable groups. - Coordinate the handling of the conflicts and problems during the resettlement implementation. - Report the land acquisition and structure demolishment to PLG.

Resettlement - Organize the socioeconomic survey. Office - Conduct measurement surveys of land acquisition and house demolishment. - Implement the relocation. - Formulate the resettlement implementation schedule. - Sign the land acquisition and house demolishment agreement with the affected households in association with local government. - Supervise the implementation of RP. - Manage the information of land acquisition and resettlement. - Provide assistance to women and other vulnerable groups. - Train the resettlement staff. - Coordinate the handling of conflicts and problems during the RP implementation. - Settle the disputes and grievances through coordination and

82 Institutions Responsibilities arbitration. - Handle the illegal action during the land acquisition and relocation process. - Report the land acquisition and house demolishment to IA.

FLRB - Implement the relevant national policies of land acquisition. - Participate in the examination of compensation standards for land acquisition and ground attachments. - Process and approve land acquisition. - Participate in measurement and socioeconomic surveys. - Participate in the preparation of Resettlement Plans. - Issue Land Use Planning Certificate and Land Use Construction Certificate. - Issue Public Notice of Land Acquisition. - Guide, coordinate, and supervise the implementation activities of land acquisition and resettlement. - Coordinate the handling of conflicts and problems during the RP implementation.

FHDAO - Carry out and implement the regulations and policies related to house demolition. - Review the relevant documents of house demolition plan and resettlement and compensation plan, issue the house demolition certificate. - Register and manage house relocation file. - Coordinate, supervise and inspect the house demolition activities and handle conflicts during demolition. - Cooperate with the respective Resettlement Office (RO) to train and examine the resettlement officers.

Legal Advisory - Provide legal consultancy during project implementation. Office - Provide legal assistance in case there is dispute during land acquisition, structure demolishment and resettlement.

District - Assist the measurement and socioeconomic surveys. Government - Assist the preparation of resettlement plans. - Supervise VC to implement resettlement plan and rehabilitation plan.

VC - Participate in measurement and socioeconomic surveys and formulation of the resettlement and rehabilitation plan. - Participate in the preparation of the RP. - Organize the public consultation; and publicize policies of land acquisition and resettlement. - Consult the compensation payment and distribution. - Organize the production and income restoration activities in resident communities and villages. - Organization the development of secondary and tertiary industries. - Report comments and suggestions of APs to the organizations at upper level. - Provide assistance to women and other vulnerable groups.

83 Institutions Responsibilities DI - Minimize the project impacts through optimizing engineering design. - Identify the scope of land acquisition and resettlement impacts. - Conduct measurement survey and socioeconomic surveys. - Assist to prepare the Resettlement Plan. - Provide technical consulting of data collection and processing to the respective municipal PMO and IA.

Independent - Provide technical consulting of land acquisition and Monitoring resettlement. Agency (IMA) - Act as an IMA, provide periodic monitoring for the implementation of the resettlement plan, and provide independent evaluation report to the municipal PMO, IA, RO, and ADB.

11.3 Institutional Capacity Strengthening

11.3.1 Assessment of Institutional Capacity

11.3.1.1 Logistics and Hardware

157. Currently there is a resettlement office under FCFDUCICL, which is equipped with a few computers. The RO has facilitated with office facilities, transportation vehicles and communication facilities, mainly including air-conditioner, chairs and tables, computer, printer, telephone set, fax machine, vehicle and some other office necessities. The expenditure of the RP will be included in the office expenses. The relevant expenditures for hardware facilities for the RO are budgeted at CNY 50,000.

11.3.1.2 Financing

158. During the PPTA stage, all budget spent were pre-paid by IA as well as EA. The lack of financing resources during project preparation stage has definitely hindered the institutional set-up and the preparation progress (including FSR and RP preparation) irrespective of the staff’s capabilities. The RP has considered this issue and adequate management fund for RP implementation has been budgeted in the resettlement budget.

11.3.1.3 Staff Capabilities

159. During the PPTA stage, the Consultants found that many government officials have rich experiences in dealing with land acquisition and resettlement issues. However, almost nobody has resettlement experience of working in ADB financed projects, and none of them has attended training on ADB involuntary resettlement policies before the Project. Therefore, a systematic training on Involuntary Resettlement will be necessary.

11.3.2 Institutional Capacity Building and Training

160. The ADB will provide support to train staff on resettlement procedures. A part of the ADB loan for implementation will be provided for institutional capacity

84 building through specific training courses and on the job training with the appointed IMA. The training includes the principals and policies of resettlement, construction planning management, planning and design, management on LAR implementation processes, financial management, quality control, supervision and estimation and project management.

161. In order to promote the capability and working efficiency of resettlement staff, training will be provided to them. Based on the real situation, the requirements are as follows:

- Training venue will be selected outside of Fangchenggang City, preferably those cities which have ADB projects with successful resettlement experiences so that trainees can learn their experiences from investigations or study tours.

- Trainees should be those who will be seconded to the Project to undertake resettlement tasks, and those resettlement officials who participated in the RP discussions with PPTA Resettlement Consultant must participate.

- Training is planned between April 2011 and April, 2013.

85 XII. MONITORING, EVALUATION AND REPORTING

162. The PMO and IA will regularly monitor and evaluate the implementation of land acquisition and resettlement activities in order to ensure resettlement work is implemented successfully in accordance with the RP, and to achieve the target of appropriate livelihood restoration for APs. The monitoring will comprise two components: internal monitoring and external monitoring. Internal monitoring will be mainly conducted by IA and RO and will be overseen by the project leading group and PMO to ensure that organizations involved in implementation of land acquisition and resettlement work comply with the principles and schedules of the Resettlement Plan (RP).

163. The aim of internal monitoring is to encourage the concerned organizations to carry out good performance while the external monitoring and evaluation will be conducted by an independent agency periodically on the activities of land acquisition, demolition and resettlement.

164. The scope of monitoring on resettlement will cover data collection, analysis, and the reporting of progress for an internal monitoring while the external monitor will check progress but their main role is to evaluate quality and results of resettlement.

165. Resettlement monitoring will focus on the following two aspects:

- Progress of disbursement and provision of entitlements to APs. - Comparison of APs and VC pre and post resettlement socioeconomic situation, particularly livelihood restoration. Background socioeconomic data collected during the inventory and census surveys will be used in this assessment.

12.1 Internal Monitoring

166. Internal monitoring will be undertaken by the PMO, Fangchenggang Land Resources Bureau, Fangchenggang House Demolishment Administration Office, and IA and RO, to assure the concerned departments to comply with the RP. Internal monitoring and evaluation aims to ensure good performance during the resettlement process.

167. The executive agency will take major responsibility of internal monitoring, covering the activities of affected people, entitlement, advice, grievance, problems, efficiency, timing, budget, etc.

- Disbursement of entitlements to AP: compensation, reconstruction house land, employment, and necessary assistance as specified in the RP.

- Social adaptability and cohesion: impacts with a gender perspective on APs and vulnerable groups, public participation, non-government’s role, AP’s attitudes and opinions after resettlement, number of complaints and appeal procedures, implementation of preferential policies and income restoration measures, and improvements in women’s status.

- Timing of land acquisition, structure demolition, reconstruction house land, livelihood and income restoration: disbursement of compensation, and construction and allocation of reconstruction house land, and updating of resettlement schedule and resettlement budget where required.

86 - Rehabilitation of community facilities and services: Timely rehabilitation of community facilities and services and ensuring that mitigation measures to minimize impacts are implemented.

- Public participation and consultation: Involvement of AP in resettlement implementation as per the public consultation plan outlined in the RP. Review of grievance register and responses to complaints.

- Assistance to vulnerable groups.

168. It is anticipated that internal monitoring reports will be brief documents reporting on progress to date and identification of issues, how issues were resolved, consultations undertaken, and revisions of the resettlement schedule and disbursement of budget where required.

12.2 External Monitoring and Evaluation

169. Required by ADB, the PMO will appoint an independent monitoring agency (IMA) to carry out the external monitoring and evaluation on resettlement. The independent agency should have good reputation and successful experience and fully understand ADB’s policy and requirements on resettlement. The PMO will sign a contract with this agency. The terms of reference (TOR) for the independent evaluator are listed in Appendix 2.

12.2.1 Objectives and Requirements of M&E

Objectives

170. The objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the APs’ situation and the resettlement process.

 Economic situation prior to and after displacement of land or structures;  Timely disbursement of funds;  Environmental conditions;  Social adaptability after resettlement;  Rehabilitation of the vulnerable groups if identified during implementation process;  Measures taken to restore affected production and livelihoods of the APs and enterprises; and,  Living conditions and economic status of APs following resettlement in comparison to the non-affected household in the Project area.

171. Monitoring and evaluation will include the establishment of socioeconomic baselines of the APs prior to land acquisition or physical relocation, and the regular monitoring of their relocation or adjustment during Project implementation, and evaluation of their situation for a period of one or two years afterwards. Qualitative and quantitative methods will be used to evaluate the standard of living of the APs. Investigation will include interviews with IA, local officials, village leaders, and survey of 20-25% of affected households. Focus group discussions can be conducted to address issues related to women, poor, and other vulnerable groups.

87 Monitoring Indicators

172. The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP:

 Disbursement of entitlements to affected households: compensation, land, structures, employment, and necessary assistances as specified in the RP.  Development of economic productivity: job opportunities available to APs, number of APs employed or unemployed.  Restoration of basic infrastructures and special facilities: all necessary basic infrastructures and special facilities should be restored at least up to a standard equal to the standard at the original location; the compensation for all infrastructures and special facilities should be sufficient to reconstruct it to the same quality.  Level of AP’s satisfaction: level of APs’ satisfaction with various aspects of the resettlement program; the operation of the mechanisms for grievance redress will be reviewed and the speed and results of grievance redressal measures will be monitored.  Standard of living: Throughout the whole implementation process, the trends in standards of living will be observed and the potential problems in the way of restoration of living standards will be identified and reported. The Consultant will carry out a comprehensive socioeconomic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation.  Social adaptability and cohesion: impacts on children, the elderly and other vulnerable groups, public participation, APs’ attitudes and reaction to post resettlement situation, number of complaints and appeal procedures and resolution, implementation of preferential policies, income restoration measures, and improvements in women’s status.

Special Considerations

173. Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include:

 The status and function of women: Closely monitor any change in women’s status, function and situations. At least 40 % of APs surveyed will be women. The monitoring and evaluating unit will also provide recommendations and assistance to the PMO and IA in respect of women’s issues.  Care and attention to vulnerable groups: Closely monitor living conditions of the poor, elders, the disabled, and other vulnerable groups after resettlement, to ensure that no hardship is experienced.  Monitoring and evaluation will provide information on utilization and adequacy of resettlement funds. The Fangchenggang Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the IMA.

12.2.2 Methodology

174. The methodology of external monitoring and evaluation are listed as follows:

88

- Independent agency will conduct baseline survey on the affected area and acquire the baseline data of APs. The investigation about production and AP’s living conditions will be made every year to measure the change. Sample trace investigation of affected households will be adopted. Irregular interview or site visits will be made to acquire sufficient data for evaluation.

- Conduct group discussion and consultation with various groups of people from government, non-government, community and affected people.

- Interview with key persons such as village leaders regarding resettlement implementation.

- Village public meetings to collect information on resettlement.

- Make direct observation regarding progress of demolition and replacement and visit the individuals or groups.

- Informal investigation or interview by non-sampling means such as with the affected people and staff engaged with resettlement.

12.2.3 Major Tasks

175. The IMA will monitor and evaluate the resettlement relative with the project and consolidate their findings and assessment into a report to ADB, EA, IA and other concerned departments. These reports can be helpful in the policy-making by concerned department. The affected people and non-government organizations and communities will participate in the evaluation activities.

176. External monitoring and evaluation will cover the quality assessment on following the aspects:

- Adequacy of compensation and timelines of payment;

- Structure demolition and resettlement of APs;

- Situation of production and living environment pre and post resettlement; bear in mind with a gender perspective;

- Livelihood restoration of APs;

- Operation and efficiency of the resettlement institutions.

12.2.4 Reporting Requirements

177. Internal monitoring reports will be submitted quarterly by project IA to the PMO and PMO will submit it in the progress report to ADB. The external M&E reports will be submitted directly to PMO and ADB simultaneously every six months by the IMA. The external evaluation reports will be continued once every six months until the completion of the resettlement, and then the annual evaluation reports will also be prepared by the external monitor once every 12 months until Project completion. Finally, after project completion, the PMO and IA will prepare a resettlement completion report and submit to ADB.

89 APPENDIX 1: Resettlement Information Booklet

1. Introduction

178. The Fangchenggang Maoling WWTP and Sewerage Network Project (Phase I) is composed of: i) newly built WWTP with wastewater treatment capacity of 30,000 m3/d; ii) build 3 pumping stations in the short-term plan area; iii) pave d400-DN1200 wastewater pipeline along the district road with average depth of 4 m and total length of 24 km. The Project owner is Fangchenggang City Fangcheng District Urban Construction and Investment Co., Ltd..

2. Impacts of Land Acquisition and Resettlement

179. The Project will mainly involve land acquisition and structure demolishment in Sha’ao Village of Maoling Township. A total of 100 mu of rural collective land will be acquired permanently, including 30 mu (30%) farmland. The permanent land acquisition will affect 30 households or 200 persons. Temporary land occupation will use 150 mu of land with 146 households or 627 APs to be affected. A total of 685 m2 of residential houses will be demolished, relocating 5 households or 28 persons. Associated auxiliaries, basic infrastructures and special facilities will also be affected, such as toilet, fruit tree, chicken house, pig pen, well, electric pole, rural road, satellite antenna, broadcasting line, etc. Of the total affected populations, there are no vulnerable group and ethnic minority in the project area. Table 1 provides the summary of the land acquisition and resettlement impacts identified, Table 2 provides the impacts of permanent land acquisition, Table 3 temporary land occupation, Table 4 demolishment of residential structures, Table 5 affected ground attachments, Table 6 summary of affected households and populations.

90 Table 1: Summary Land Acquisition and Resettlement Impacts Total AHs&APs Residential Temporary Land by Administrative Jurisdiction Permanent Land Acquisition Structure Occupation LA & Demolishment Demolishment Total Collective AHs APs Total AHs APs Total AHs APs Townshi AHs APs District Village Area Land (No.) (No.) Area (No.) (No.) Area 1 1 (No.) (No.) p 2 (No.) (No.) (mu) (mu) (mu) (m ) Fangcheng Sha’ao Maoling 100 100 30 200 150 146 627 685 30 200 District Village 5 28 Total 100 100 30 200 150 146 627 685 5 28 30 200 Note: 1 AHs and APs are affected by residential house demolishment will also be affected by permanent land acquisition.

91 Table 2: Impacts of Permanent Land Acquisition Total Land Type (mu) Village Collective AHs Project Affected by APs Land Area (No.) Content Permanent (No.) by Paddy Wood Waste

LA Permanent Land Land Land LA(mu) WWTP 30 200 96 30 61 5 Sha’ao Pump Village 0 0 4 0 4 0 Station Total 30 200 100 30 65 5

Table 3: Impacts of Temporary Land Occupation Total Land Type (mu) Collective Fi AHs Land Area s Affected APs by Dry h (No.) Paddy Vegetable Wood Waste Village (No.) Temporary Lan P Land Land Land Land Land d o Occupation n (mu) d Sha’ao 146 627 150 30 4.5 15 3 90 7.5 Village Total 146 627 150 30 4.5 15 3 90 7.5

Table 4: Demolishment of Residential Structures Affected House Demolishment Area (m2) Affected Names of Total Village Brick- Brick- Village APs APs Total Simple Group Concrete Wood Xianwo Song Qiyi 7 210 199 11 Xianwo Song Qikuan 6 160 151 9 Sha’ao Baobei Xiang Zhirong 4 100 92 8 Village Baobei Xiang Zhihua 5 105 91 14 Xiang Baobei 6 110 101 9 Zhicheng Total 2 5 28 685 542 92 51

Table 5: Affected Ground Attachments Item Unit No. Auxiliaries Toilet No. 5 Fruit tree mu 8 Chicken house M2 10 Pig pen M2 35 Methane gas pond M2 15 Well No. 5 Infrastructures and Special Facilities Electricity poles No. 5 Rural road km 2.5 Satellite antenna No. 5 Broadcasting line m 1,000

92

Table 6: Summary of Affected Households and Populations (Unit: No.) Total APs Residential Temporar by House Administrative Permane y Land Permanent Demolishme jurisdiction nt LA Occupatio LA & House nt n Demolishm

ent District/ City Village AHs APs AHs APs AHs APs AHs APs Township Fangcheng Fangchengg District/Maoli Sha’ao 30 200 146 627 5 28 30 200 ang ng Township Total 30 200 146 627 5 28 30 200

3. Appeals and Grievance Procedures

180. APs can propose any complaint related to resettlement issues and compensation. The Project has established a transparent grievance channel in addition to the existing grievance channels of local government. The basic grievance procedures include the following steps.

Stage 1: 181. If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the village committee or in oral or in written form. If an oral appeal is made, the village will record it on paper and process it. Village committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice.

Stage 2: 182. If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the district government office after receiving the decision; the district government office will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 3: 183. If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the Fangchenggang Project Management Office (FPMO) or Fangchenggang Land Resources Bureau (FLRB) or Fangchenggang House Demolishment Administration Office (FHDAO) after receiving the decision. The Fangchenggang City PMO or FLRB or FHDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 4: 184. If the aggrieved AP is still unsatisfied with the decision of the FPMO or FLRB or FHDAO, he/she will appeal to the GZAR LRB or HDAO after receiving the decision. The GZAR LRB or HDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 5: 185. If the AP is still dissatisfied with the decision of the GZAR LRB or HDAO, he/she will appeal to the civil division of a people’s court according to the civil procedural law after receiving the decision from GZAR LRB or HDAO. The AP will be informed of the result via written notice.

93 . 186. The resettlers can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc.

187. The resettlers can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc.

4. Legal Framework and Policies

188. The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project. The land acquisition, demolition and resettlement of this project will be complying with the laws and regulations of PRC, local government and ADB:

 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004;  Land Administration Law of the PRC, amended in 2004;  Implementation Regulation for Land Administration Law of PRC; December 1998;  Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93];  Temporary Regulations on Farmland Acquisition Tax of PRC, 2008;  GZAR “Land Administration Law”, 2001;  Decree 15 of Guangxi Zhuang Autonomous Region People’s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region;  Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52];  Implementation Methods of GZAR farmland occupation tax [Guizhengfa (1987) 88 Hao 59];  Notice of Compensation and Resettlement Method for Land Acquisition and Resettlement of Four Lines and Four Areas Construction in Fangchenggang City, 2009;  Unified Standard of Annual Output Value issued by the People's Government of Fangchenggang City, 25th January, 2010;  ADB’s Involuntary Resettlement Policy, 1995;  Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998;  Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; and,  OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006.  ADB’s Safeguard Policy Statement, June 2009;  ADB’s Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010).

4.1 Eligibility and Principles of Compensation

189. The Project affected persons (APs) are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a

94 result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected area. All landowners and users and occupants of structures in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the types of losses and quantities who are there before the cut-off date determined by Fangchenggang Municipal Government. The cut-off date for the compensation will be announced to all APs immediately afterward, within the completion date of the construction map and investigation; any newly cultivated land, or planting of crops or trees, or structures built after the cut-off date determined by the local government will not be compensated.

190. The principle of the compensation and entitlements established for the Project are to: Improve, or at least restor, the livelihoods of all affected/ displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible; Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

4.2 Compensation Standards and Entitlements

191. The compensation for the land loss will be paid by “cash”. The compensation for the relocated households will be paid by “cash plus reconstruction house land”. The relocated households will get relocation allowance and temporary transit allowance. The cut-off date will be determined by FMG in collaboration with relevant organizations involved, including PMO, IA, FLRB, FHDAO, and district government. Illegal land-use, construction of temporary structures will not be compensated after the notification of cut-off date. FMG, IA, FLRB and FHDAO could take photos/video of the places on the cut-off date to prevent further influx beyond the cut-off date. FMG will publicize the cut-off date on newspaper of “Fangchenggang Daily” and community / village bulletin board once the date is decided. The cut-off date will usually be upon the completion of DMS. Table 8 presents the eligibility, compensation rates and entitlements.

95 Table 8: Eligibility, Compensation Rates and Entitlements Type of Compensation Policy & Level of Impact Entitled Persons Agency Responsible Losses Standards Permanent Collective-Owned “Cash” will be provided to all APs Compensation rates to the APs: PMO, FCFDUCICL,FDG, land land: affected by permanent land 16 times multiplier of AAOV at Maoling District Government, acquisition 100 mu acquisition. CNY 17,728/mu; The FLRB, VC and RO 30 rural collective-owned compensation rates include the households land will be acquired Compensation for the rural land compensation, and 200 permanently for the collective land acquisition will be resettlement subsidy and rural Project, including 30 paid to the affected households standing crop compensation at populations) mu paddy land, 65 directly. market replacement value and mu wood land, and 5 all of them will be paid to the mu waste land); individuals. All compensation rates to be paid are at replacement value and no legal cost should be borne by the APs. The compensation rates for different land loss will be the same. The APs will get the same rate for different types of land loss as they are in the same township in accordance with the newly implemented “Unified Standard of Annual Output Value issued by the People’s Government of Fangchenggang”.

The following livelihood rehabilitation measures will be provided to the land loss farmers: i) various employment

96 Type of Compensation Policy & Level of Impact Entitled Persons Agency Responsible Losses Standards and income generation opportunities during the Project construction and operation phases; ii) development of self-employed tertiary businesses; iii) provision of technical training to the APs, and iv) provision of social insurance to the APs.

No vulnerable people have been identified in the Project affected area. However, if there is vulnerable people identified during the DMS or project implementation, the following provisions will be provided to them to rehabilitate their income: i) MLG fund at CNY 200/month; ii) training without charge will be provided to them to increase the knowledge and skills of the vulnerable groups; iii) provision social safeguard program; iv) provision of employment opportunities generated by the Project and provision of employment information to the vulnerable groups; and v) provision of

97 Type of Compensation Policy & Level of Impact Entitled Persons Agency Responsible Losses Standards micro-credit to them by the local rural credit union or local banks. The IA and the local government will assist the APs to get access to micro-credit from local banks. Temporary A total of 150 mu Cash compensation will be paid to Compensation standards to the PMO, FCFDUCICL, FLRB, and Land and rural collective the affected people directly by for farmers for the loss of standing RO Occupation land will be occupied standing crop compensation. crops: CNY 746 / mu for paddy (146 AHs or (30 mu paddy land, land; CNY 3,173 / mu for 627 APs) 5 mu vegetable Land recovery fees shall be paid by vegetable field; CNY 700 / mu land, 15 mu dryland, contractors, and it will be included in for dryland; CNY 4,481 / mu for 5 mu fish pond, 90 the engineering construction costs. fish pond; CNY 1,242 / mu for mu wood land and woodland. 7.5 mu waste land). After temporary land use, the land will be restored by the APs to original condition and keep the same quality. The land recovery cost is included in the engineering cost of the Project. Residential A total of 685 m2 All affected APs will be provided with Compensation for the affected PMO, FCFDUCICL, RO, FDG, structures residential “cash plus reconstruction house structures at full replacement FLRB, FHDAO, Fangcheng and structures will be land” to relocate and build new costs of materials and labors District Government, Maoling auxiliaries (5 demolished, houses within the same village. with no deduction for Township, VC, and RO. households including 542 m2 depreciation or salvageable or 28 rural brick-concrete, 92 The cut-off date will be determined materials. populations). m2 brick-wood, and by FMG in collaboration with 51 m2 simple relevant organizations involved, The current house plot of the structure. including PMO, IA, FLRB, FHDAO, APs is 685 m2, with average at

98 Type of Compensation Policy & Level of Impact Entitled Persons Agency Responsible Losses Standards and district government. Illegal 24.5 m2 / capita. The land-use, construction of temporary Fangcheng District Government structures will not be compensated in association with the Maoling after the notification of cut-off date. Township Government and FMG, IA, FLRB and FHDAO could affected village will be take photos/video of the places on responsible for providing house the cut-off date to prevent further plot.The standard for the influx beyond the cut-off date. FMG allocation of the reconstruction will publicize the cut-off date on house land in accordance with newspaper of “Fangchenggang the Notice of Compensation Dairy” and community / village and Resettlement Method for bulletin board once the date is Land Acquisition and decided. Resettlement of Four Lines and Four Areas Construction in Relocation allowance and temporary Fangchenggang City, 2009 is transit allowance in cash will be 25 m2 / capita. For those provided to the APs households with 3 persons or less than 3 persons, allocation of 80 m2 house plot could be provided with approval, but the APs need to pay for the area exceeding 25 m2/capita as the land development cost at CNY 1,500/m2. For those households whose house plot allocation is less than 25 m2/capita, the area which is not requested will be compensated at CNY 1,500/m2. The APs agree with the standards.

99 Type of Compensation Policy & Level of Impact Entitled Persons Agency Responsible Losses Standards

The compensation standards for structures are: CNY 600/m2 for brick-concrete, CNY 500/m2 for brick-wood, CNY 240/m2 for simple structure.

Relocation allowance will be paid to the AHs in cash at CNY 8/m2 and CNY 4,000/capita for temporary transit allowance. The Maoling Industrial Park Administration Committee in association with the VC will responsible for the site leveling and infrastructures, but the cost is included in the annual budget of FMG and excluded in the RP. The IA and local government will assist the APs on the selection and allocation of reconstruction house land, new house construction and relocation.

No vulnerable people have been identified in the Project affected area. However, if there is vulnerable people identified during the DMS or project

100 Type of Compensation Policy & Level of Impact Entitled Persons Agency Responsible Losses Standards implementation, the following provisions will be provided to them: i) For the elderly or disabled, priority should be provided to them during the selection of the location of reconstruction house land; and ii) Provide labor and transportation assistance to the vulnerable groups without charge. Ground 5 toilets, 8 mu fruit All Affected people or owners will Cash compensation will be paid PMO, FCFDUCICL, RO, Attachments tree, 10 m2 chicken get equivalent amount of cash to all affected people or owners: Fangcheng District Government, house, 35 m2 pig compensation CNY 150/each for toilet, CNY Maoling Township Government, pen, 15 m2 methane 18.080/mu for fruit tree, CNY and VC gas pond, 5 wells, 5 100/m2 for chicken house and electric poles, 2.5 pig hen, CNY 20,000/m2 for km rural road, 5 methane gas pond, CNY households’ satellite 2,200/m2 for well, CNY antenna, 1,000 m 2,500/each for electric pole, broadcasting line. CNY 20/m2 for rural road, CNY 1,000/household for satellite antenna, and CNY 30/m for broadcasting line

101 5. Resettlement and Rehabilitation Plan

192. The overall objectives of the resettlement program are for the affected people to be offered with livelihood opportunities, for the labor force to be resettled properly, and for the living and production conditions of the APs to be improved or at least not worse-off than before the Project. The basic principles of the resettlement and rehabilitation plan are as follows:

193. For people losing land permanently, “cash” compensation will be paid to them. The PMO, IA, RO and local government will provide necessary assistance during LAR implementation. The measures for economic rehabilitation include: (i) provision of 1,060 person-years of employment opportunities to the APs in labor force during the Project construction and 57 public welfare job positions during operational phases; (ii) Developing tertiary industry such as grocery store, clothes retail, food catering service, transportation, taxi, goods delivery service, hairdressing salon, laundry, entertainment, hotel, tours, etc.; (iii) provision of social insurance, with 30% contribution from the local government and 70% contribution from rural collectives and farmers (The land lost farmers pay 20% based on the 40% of the average wage of the urban workers in last year); (iv) annual employment opportunities generated induced by the Project and related urban development projects. The FMG will coordinate with relevant departments, including the owners of the job positions, labor and social security bureau and district government to arrange the APs to be employed for these job positions; (v) provision of technical training to 456 APs in labor force to increase their skills to be employed in institutions, enterprises and businesses.

194. For the people who will lose their land temporarily, crops compensation will be paid to the affected persons in cash. Land restoration fee is included in project fee and paid to contractors to restore the land into its original condition and keep the same quality as before by the contractors. The Project construction will generate 1,060 person-years short-term employment opportunities. The APs will be given priority to be employed during the project construction with income earnings at over CNY 1,500 per month.

195. For residential houses structures to be demolished, cash plus provision of reconstruction house plot for self-construction by the APs will be adopted for this project. The households that have to be relocated will also receive a relocation allowance and relocation transit allowance. Compensation for ground attachments will be paid to the APs.

Employment Opportunities Generated by the Project

196. During the project construction phase, APs can seek some income generation opportunities, mainly providing services related to the Project construction, such as renting spare houses (if available) to the construction contractors as temporary office or to the construction workers as residence, operating grocery kiosks, and providing food, cigarettes and breweries to the construction teams. Also during the construction period, the PMO and IA will offer 1,060 person-years temporary employment job opportunities, such as excavation for pipeline and structures and soil and earth transportation.

197. During the Project operational period, the APs with suitable qualifications will be employed and receive on-the-job training. Women and the poor will be given priority to be employed by the Project. After the construction of the Project has been completed, it is planned that 57 public welfare position jobs shall be provided for the APs based on discussion with the IA: 10 landscape workers, 27 road maintenance, 10

102 safeguard and 10 cleaners. The ratio of employment for men and women will be 1:2. The salary will be over CNY 1,500 per month. As a result, the APs could get access to additional income generation opportunities and additional income. Therefore, the APs will benefit from the resettlement of the Project.

Provision of Technical Training to the APs 198. In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the RO and IA will cooperate with the departments of Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the relocated APs. The technology training will be consistent with the district economic features, requirements of the labor market and the enterprises to ensure that the training is practical, efficient and targeted.

199. In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the RO and IA will cooperate with the departments of Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the relocated APs. The technology training will be consistent with the district economic features, requirements of the labor market and the enterprises to ensure that the training is practical, efficient and targeted.

200. By taking into consideration of lack of working skills for the major labor force of the affected households, especially women, the IA will ensure that at least 50% of the trainees will be females. After training of occupational skills, the APs could get jobs in the city. A total of CNY 220 per person has been budgeted as training cost to cover the cost of training provided to the APs.

201. The training will be carried out twice a year, commenced from April 2011 and last till April 2013. The training will be implemented in association with local district government, VC, WF, and vocational education department. The training will be provided to all APs with labor force, especially the women. For each training, at least 50% of women should be included. The training includes:

(1) Public security guard, cleaning, public aesthetic landscaping, maintenance of public facilities, management of parking lot, and others; (2) Horticulture, sewing and knitting, beauty and hairdressing; (3) Maintenance and repair of motorcycle, vehicle, and electronic products; (4) Car decoration and management of cleaning and washing accessories; (5) Food, catering and hotel services, and domestic servant services; and, (6) Sales of products, small business registration and operation.

6. Cost and Schedule

202. The cost estimate for land acquisition and resettlement is CNY 5.5863 million or US$ 821.5 thousand at the prices of 2010, including compensation for permanent collective land acquisition, temporary land occupation, residential house demolishment, auxiliaries, infrastructures and special facilities, other costs, and contingency. The land acquisition and resettlement activities will occur between April 2011 and April 2013. Construction will not take place before the APs are fully compensated and relocated, and all arrangements are made to commence the livelihood rehabilitation activities and the APs are registered for these. Internal and external monitoring of the RP implementation will be conducted to ensure successful implementation of the RP.

103 APPENDIX 2: TOR for External Monitoring and Evaluation

A. Introduction

203. According to the requirements stipulated in the “Regulations on Construction Supervision” promulgated by the Ministry of Construction of the People’s Republic of China (PRC) in 1995, all construction projects shall be properly supervised. It is also a requirement of the Asian Development Bank (ADB) that loan projects that result in land acquisition and resettlement be properly monitored and evaluated. In order for the implementation of the land acquisition and resettlement program of the Guangxi Beibu Gulf Cities Development Project (GBGCDP) to comply with the provisions of the Resettlement Plan (RP), monitoring of implementation, both “internal” and “external”, will be carried out during and after the implementation of the Project.

204. An independent monitoring agency (Monitor) will be engaged through competitive tenders for the external supervision, monitoring and evaluation. The Consultant will be a PRC consulting entity who has experience in ADB or World Bank projects dealing with resettlement issues.

205. Monitoring and evaluation will include, but not be limited to:

 Monitoring the progress and effectiveness of RP implementation; and,  Evaluation of income restoration and post-resettlement conditions of the APs and host communities.

B. Objectives and Requirements of Monitoring and Evaluation

206. The objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the APs’ situation and the resettlement process.

 Economic situation prior to and after displacement of land or structures;  Timely disbursement of funds;  Environmental conditions;  Social adaptability after resettlement;  Rehabilitation of the vulnerable groups;  Measures taken to restore affected production and livelihoods of the AP; and,  Living conditions and economic status of APs following resettlement in comparison to the non-affected household in the Project area.

207. Monitoring and evaluation will include the establishment of socioeconomic baselines of the APs prior to land acquisition or physical relocation, and the regular monitoring of their relocation or adjustment during Project implementation, and evaluation of their situation for a period of one or two years afterwards. Qualitative and quantitative methods will be used to evaluate the standard of living of the APs. Investigation will include interviews with IA, local officials, village leaders, and survey of 20-25% of affected households. Focus group discussions can be conducted to address issues related to women, poor, and other vulnerable groups.

C. Monitoring Indicators

208. The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP:

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 Disbursement of entitlements to affected households: compensation, reconstruction house land, employment, and necessary assistance as specified in the RP.  Development of economic productivity: job opportunities available to APs, number of APs employed or unemployed.  Restoration of basic infrastructures and special facilities: all necessary infrastructures and special facilities should be restored at the resettlement sites at least up to a standard equal to the standard at the original location; the compensation for all infrastructure and special facilities should be sufficient to reconstruct it to the same quality.  Level of AP’s satisfaction: level of APs’ satisfaction with various aspects of the resettlement program; the operation of the mechanisms for grievance redress will be reviewed and the speed and results of grievance redressal measures will be monitored.  Standard of living: Throughout the implementation process, the trends in standards of living will be observed and the potential problems in the way of restoration of standards of living will be identified and reported. The Consultant will carry out a comprehensive socioeconomic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation.  Social adaptability and cohesion: impacts on children, the elderly and other vulnerable groups, public participation, APs’ attitudes and reaction to post resettlement situation, number of complaints and appeal procedures and resolution, implementation of preferential policies, income restoration measures, and improvements in women’s status.

D. Special Considerations

209. Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include:

 The status and function of women: Closely monitor any change in women’s status, function and situations. At least 40 % of APs surveyed will be women. The monitoring and evaluation agency will also provide recommendations and assistance to the EA in respect of women’s issues.  Care and attention to vulnerable groups if identified during implementation process: closely monitor living conditions of the poor, elders, the disabled, and other vulnerable groups after resettlement, to ensure that no hardship is experienced.  Monitoring and evaluation will provide information on utilization and adequacy of resettlement funds. The Fangchenggang Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the IMA.

E. Contents and Distribution of Independent Monitoring Reports

210. A monitoring report will include, among other things:

 conclusion of investigation and evaluation;  major existing and potential problems;  recommended mitigation or prevention measures which will be incorporated into a revised plan if necessary; and,

105  assessment of previous follow-up actions.

211. The IMA will forward copies of the reports to the Asian Development Bank. The PMO will also submit a resettlement completion report to the ADB, to be followed by post-resettlement impact evaluation reports by the monitor, which should provide further evidence whether adverse effects of the Project have been mitigated adequately, and at least non-affected household income levels have been restored for the APs.

F. Monitoring Schedule

212. The Monitor will provide the ADB, PMO, IA, RO, FLRB, FHDAO and relevant departments with monitoring reports every six months during resettlement implementation and annual evaluation reports as well within 2 years after the completion of resettlement implementation. Table 1 provides the resettlement monitoring and evaluation schedule.

Table 1: Schedule for Resettlement Monitoring and Evaluation No. Report of M&E Date Baseline Survey of Socioeconomic 1 April - May, 2010 Information 2 First Monitoring Report 31 July, 2011 3 Second Monitoring Report 31 December, 2011 4 Third Monitoring Report 31 July, 2012 5 Fourth Monitoring Report 31 December, 2012 6 Resettlement Completion Report 31 July, 2013 7 First Annual Evaluation Report 31 December, 2013 8 Second Annual Evaluation Report 31 December, 2014

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