Resettlement Planning Document

Resettlement Plan Document Stage: Final Project Number: 37641 August 2005

People’s Republic of China: Hunan Flood Management Sector Project, Hunan Province, Sangzhi County

Prepared by Hunan Project Management Office of Hilly Region Urban Flood Control Projects

Utilizing ADB Loans Hydro and Power Design Institute of Hunan Province & Ministry of Water

Resources.

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

Approval: Wu Shengping

Check: Liu Chongshun

Examination: Guan Yaohui

Proofer: Yu Bo

Compiler: Zhao Gengqiang Zhang Tao

Liu Yiwei

Main Designers: Zhao Gengqiang Zhang Tao

Liu Yiwei Guan Yaohui

Su Minghang Ren Ning

Yu Bo Fan Jianyang

Chen Junyan

Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

Contents

Objectives of Resettlement Plan & Definition of Resettlement Vocabulary ...... 1

Summary of Resettlement Plan for Sangzhi Urban Flood Protection Subproject...... 3 A. Introduction ...... 3 B. Scope of Land Acquisition and Resettlement...... 3 C. Policy Framework and Entitlements...... 4 D. Resettlement Strategy...... 4 E. Institutional Arrangements ...... 5 F. Vulnerable Groups...... 6 G. Consultation and Grievance Redress...... 6 H. Monitoring and Reporting...... 7 I. Finance and Implementation Schedule ...... 7

1. General Description of Project ...... 8 1.1 Project Background ...... 8 1.2 General Situation of Project...... 10 1.2.1 Areal Geographic Location...... 10 1.2.2 Construction Scale and Content of Project ...... 10 1.2.3 Project Investment Estimation and Planned Progress ...... 10 1.2.4 Socioeconomic Benefit of Project...... 11 1.3 Project Affected Area...... 11 1.4 Compilation of Resettlement Plan ...... 12 1.4.1 Basis and Objective for Report Compilation...... 12 1.4.2 Method of Report Compilation...... 13

2. Project Impacts ...... 14 2.1 Measures for Avoiding or Reducing to the Minimum the Land Acquisition and Relocation Impacts ...... 14 2.1.1 Measures for Reducing the Land Acquisition Impacts in Project Design Phase ...... 14 2.1.2 Measures for Reducing the Impact due to Land Acquisition in Project Construction ...... 15 2.2 Investigation on Project Impacts...... 17

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2.2.1 Investigation Contents...... 17 2.2.2 Investigation Method...... 17 2.3 Investigation Results on Project Impacts...... 18 2.3.1 Land Affected by Project...... 20 2.3.2 Affected Population Due to Project ...... 23 2.3.3 Houses and Auxiliary Facilities to be Demolished...... 26 2.3.4 Scattered Trees...... 29 2.3.5 Affected Individuals Engaged in Small-scale Business...... 29 2.3.6 Affected Enterprises and Institutions...... 30 2.3.7 Affected Special Facilities by the Project ...... 32 2.3.8 Affected Ethnic Minorities by the Project...... 32 2.3.9 Affected Cultural Relics and Vulnerable Groups by the Project ...... 33 2.4 Impact Analysis of Project ...... 34 2.4.1 Project Impact Characteristics...... 34 2.4.2 Impact Analysis Evaluation ...... 35

3. Natural and Socio-Economic Conditions of the Project-Affected Areas ...... 37 3.1 Natural Conditions of the Project-Affected Areas ...... 37 3.2 Socio-Economic Conditions in the Affected Areas of Project...... 38 3.3 Socio-Economic Conditions of Townships (Sub-districts) and Villages among the Affected Areas of the Project ...... 42 3.4 Basic Conditions of Relocatees...... 45 3.4.1 Investigation Objectives ...... 45 3.4.2 Investigation Content ...... 45 3.4.3 Investigation Method and Procedure...... 45 3.4.4 Investigation Results and Analysis...... 46 3.5 Social and Economic Effects for Resettlement to the Affected Population ...... 49

4. Legal Framework and Policy...... 51 4.1 Main Chinese Laws & Regulations and Policies for Resettlement...... 51 4.1.1 Policy Bases ...... 51 4.1.2 Relevant Laws and Regulations...... 52 4.2 Relevant Articles of the ADB ...... 63 4.2.1 Policy Bases ...... 63

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4.2.2 Relevant Policies and Regulations...... 63 4.3 Compensation Standards for Project...... 64 4.3.1 Compensation Qualification ...... 64 4.3.2 Principles of Compensation Rehabilitation...... 65 4.3.3 Compensation Reference and Standard for Land Acquisition ...... 67 4.3.4 Demolition Compensation Reference and Standard for Residential House and Auxiliaries...... 72 4.3.5 Compensation Reference and Standard for Affected Individuals Engaged in Small-scale Business...... 75 4.3.6 The Compensation Reference and Standard for Affected Enterprises and Institutions...... 75 4.3.7 Compensation Reference and Standard for Special Facilities Affected by the Project...... 77 4.4 Table of Entitlement Matrix...... 84

5. Resettlement and Rehabilitation Measures...... 88 5.1 Rehabilitation Strategies...... 88 5.1.1 Resettlement and Rehabilitation Objective...... 88 5.1.2 Resettlement and Rehabilitation Tasks...... 88 5.2 General Scheme of Rehabilitation ...... 88 5.3 Rehabilitation Plan for House Demolition ...... 89 5.3.1 Choice of Rehabilitation Method ...... 89 5.3.2 Principle and Procedure of Selecting Resettlement Sites ...... 89 5.3.3 Planning of Remove and Housing...... 90 5.3.4 Infrastructure and Public Facilities ...... 93 5.3.5 Assistance in Resettlement Process...... 94 5.3.6 Rehabilitation Plans for Affected Villages...... 94 5.4 Economic Rehabilitation Plans ...... 95 5.4.1 Tasks of Economic Rehabilitation Efforts...... 95 5.4.2 Objectives of Economic Rehabilitation...... 98 5.4.4 Environmental Capacity Analysis...... 98 5.4.5 Production Rehabilitation Plan ...... 100 5.4.6 Planning of Production Rehabilitation in Host Village...... 102 5.4.7 Investment of Economic Rehabilitation ...... 105 5.4.8 Forecast of Economic Income Level ...... 107 5.4.9 Rehabilitation Measures for Resettlers’ Economic Income ...... 108 5.5 Rehabilitation Plan for Affected Commercial Units ...... 108

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5.6 Rehabilitation Plan for Affected Enterprises and Institutions ...... 109 5.7 Minority Population Resettlement and Rehabilitation...... 110 5.8 Vulnerable Groups Resettlement and Rehabilitation ...... 110 5.9 Planning of Relocation and Reconstruction Special Facilities ...... 111 5.9.1 Transport Facilities...... 111 5.9.2 Transformer Facilities...... 111 5.9.3 Irrigation Facilities ...... 111 5.9.4 Postlines ...... 112

6. Institutions and Responsibilities...... 113 6.1 Institutions Engaging in the Resettlement Planning...... 113 6.2 Institutions and Responsibilities of Resettlement Implementation Management ...... 113 6.2.1 Institutions...... 113 6.2.2 Responsibilities ...... 113 6.3 Supervision Institutions...... 117 6.4 Resettlement Management System...... 118 6.5 Personnel and Facilities of Resettlement Institution ...... 118 6.5.1 Personnel Arrangement ...... 118 6.5.2 Facilities Arrangement ...... 118 6.6 Training Schedule...... 119 6.6.1 Training Schedule for Resettlement Administrator...... 120 6.6.2 Production Skill Training Planning for Resettlers ...... 120 6.6.3 Investment on Resettlement Training and Planning...... 121 6.7 Measures for Institution Consummating ...... 121

7. Public Participation and Harmonization with Residents in Relocation Sites ...... 123 7.1 Public Participation Strategies...... 123 7.2 Approaches and Measures of Public Participation ...... 123 7.2.1 Participation Approaches ...... 123 7.2.2 Participation and Consultation Measures...... 123 7.3 Public Participation in the Process of Resettlement Planning...... 124 7.4 Public Participation and Plan in Implementation of Resettlement Plan...... 126 7.4.1 Participation in the Houses Reconstruction and Resettlement...... 127 7.4.2 Participation in Economic Rehabilitation ...... 127

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7.4.3 Participation in the Utilization and Management of Land Compensation...... 127 7.4.4 Participation in Project Construction ...... 127 7.5 Women Participation ...... 128 7.6 Harmonization with the Residents in Host Communities ...... 128

8. Appeal Procedure ...... 130 8.1 Possible Complaint and Problems Solving Methods...... 130 8.2 Appeal Channel and Procedure...... 130

9. Environment Protection and Management ...... 133 9.1 The Necessity of Environment Protection...... 133 9.2 Relocation Cleaning Work ...... 133 9.3 The Environment Management of the Resettlement Site ...... 133

10. Monitoring and Evaluation...... 135 10.1 Internal Monitoring and Examination ...... 135 10.1.1 Organization of Internal Monitoring ...... 135 10.1.2 The Object of Internal Monitoring...... 135 10.1.3 The Content of Internal Monitoring...... 135 10.1.4 The Responsibilities of Internal Monitoring...... 135 10.2 External Monitoring...... 136 10.2.1 Independent Monitoring & Evaluation Agency...... 136 10.2.2 The Task of Independent Monitoring & Evaluation...... 138 10.2.3 The Content of Independent Monitoring & Evaluation...... 139 10.2.4 The Methods of Independent Monitoring& Evaluation...... 140 10.2.5 The Procedure of Independent Monitoring & Evaluation...... 142 10.2.6 The Period, Frequency and Standard of Monitoring & Evaluation...... 142 10.3 The Evaluation of resettlement...... 143

11. Resettlement Budget ...... 144 11.1 Compilation Basis and Principle of Cost Estimate ...... 144 11.1.1 Main Bases ...... 144 11.1.2 Compilation Principle ...... 144 11.2 Resettlement Compensation ...... 145

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11.2.1 Land Compensation...... 145 11.2.2 Compensation for Houses and Auxiliary Facilities ...... 145 11.2.3 Compensation Fee for Tombs...... 145 11.2.4 Compensation for Infrastructure...... 145 11.2.5 Demolition Transportation Fee...... 145 11.2.6 Compensation for Enterprises and Institutions...... 145 11.2.7 Compensation for Individuals Engaged in Small-scale Business...... 146 11.2.8 Subsidies for Vulnerable Group ...... 146 11.2.9 Resettlement Compensation Investment ...... 146 11.3 Compensation for Special Facilities...... 150 11.4 Other Costs ...... 150 11.5 Basic Contingency Fee...... 151 11.6 Relative Tax...... 151 11.7 Budget for Total Investment...... 152 11.8 Balance between Land Compensation Fee and Economic Rehabilitation Investment ...... 153 11.9 Funds Flow...... 154 11.10 Funds Management and Audit...... 155

12. Resettlement Progress Arrangement...... 158 12.1 Principles of Resettlement Progress Arrangement ...... 158 12.2 Progress Plan...... 158 12.2.1 Resettlement Implementation Progress Plan ...... 158 12.2.2 Annual Funds Use Plan ...... 158

Appendix 1: Resettlement Information Manual...... 160 Attached Table 1: Resettlement Implementation Progress Table of Sangzhi County Urban Flood Control Project Attached Figure 1: Schematic Drawing of Geographic Location of Sangzhi County Urban Flood Control Project Attached Figure 2: General layout Plan for Sangzhi County Urban Flood Control Project Attached Figure 3: Typical House Structure for Rural Resident Drawing of Sangzhi County Urban Flood Control Project

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Objectives of Resettlement Plan & Definition of Resettlement Vocabulary This Resettlement Plan (RP) is developed according to the Laws and Regulations of PRC and Hunan Province, as well as the resettlement policy of ADB. The purpose of this document is to set out a policy framework and an action plan for the Resettlement and Rehabilitation of the Project Affected Persons (PAPs) to ensure that they will benefit from the project and their standards of living will improve or at least be restored after the project impact. This RP is a legally binding agreement between the Executing Agency (EA) – Key Project Office under Hunan Provincial Water Resources Department (HPWRD) and both the ADB and the local government offices involved with resettlement implementation, whereby HPWRD will be responsible to ensure the action plans are adequately financed and will coordinate relevant cities and counties to implement resettlement in accordance with the resettlement plan approved by ADB. The Resettlement Plan compiled by Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources will be formally approved by the Hunan Province Water Resources Department representing the Hunan Province People’ s Government. Acquisition of land and other assets for the project will adversely affect the livelihood of persons who live, work or earn their living on the land that will be acquired for the project. PAPs are defined as those persons whose income or livelihoods will be adversely affected by land acquisition for the project. PAPs include the following categories: a) Persons who have a title, right, interest, in structures (houses, enterprises, shelters, or public buildings), land (including residential, agricultural, and grazing land) or any other asset acquired or possessed, in full or in part, permanently or temporarily; b) Persons who use the structures, land or assets described above; or persons whose business, occupation, work, place of residence or habitat adversely affected; or c) Persons whose standard of living is adversely affected as a consequence of land acquisition and/or resettlement activities. A definition of PAPs is given below: Definition of the PAPs: “Affected Persons” means persons who on account of the execution of the project had or would have their: a) standard of living adversely affected; or b) right, title or interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed, temporarily or permanently; or c) business, occupation, work or place of residence or habitat adversely affected, and “Affected Person” means individually all those who qualify as “Affected Persons.” PAPs may be individuals or legal entities such as a company, a public institution.

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Definition of PAPs is not limited or restricted to their legal registration or permission to live or conduct business in the affected location, or their titles to property. Thus it includes: a) All those affected by the project regardless of their legal rights or absence thereof to the assets being taken; and b) Persons without residential permit to live in a certain area. Therefore all such persons who are affected will need to considered and recorded as PAPs, regardless of their legal status regarding assets, land or location. All PAPs are entitled to the improvement or at least restoration of their standards of living, and compensation for the material losses they suffer. Compensation for assets will cover replacement cost. No deductions or discounts will be applied to the compensation amount for depreciation or other reasons. All PAPs deriving an economic benefit from the affected land and property are entitled to receive rehabilitation benefits in addition to the compensation for their assets lost. Those PAPs without title, authorization or legal permission to reside, conduct business, cultivate land or construct structures are eligible for rehabilitation of their livelihoods and compensation for their assets in a fair manner compared with those with formal legal title, authorization or permission to the assets. The term Resettlement includes: 1) The relocation of living quarters; 2) Finding acceptable new employment for those whose jobs are lost or severely affected; 3) Restoration (or compensation) of affected productive resources such as land, workplaces, trees and infrastructure; 4) Restoration of other adverse effects on PAPs’ living standards (quality of life) through land acquisition, indirect resettlement impacts or other project impacts; 5) Restoration of or compensation for affected private and public enterprises; 6) Restoration of adversely affected on cultural or common property. Rehabilitation means: the restoration of the PAPs’ resource capacity to continue with productive activities or lifestyles at a level higher or at least equal to that without the project. The objective of this RP is to provide a plan for the resettlement and rehabilitation of the PAPs so that their losses will be compensated and their standards of living will be improved or at least restored to the pre-project levels in a sustainable manner. Affected productive resources of businesses, enterprises (including shops) and public facilities and infrastructure will also be improved or at least restored to their pre-project levels.

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Summary of Resettlement Plan for Sangzhi Urban Flood Protection Subproject A. Introduction 1. The proposed Sangzhi County Urban Flood Control Subproject will finance the construction of following works: 1) 5891m anti-flood wall for Zhuchengqu and Gaoping Protection Circles, and 1400m earth embankment combined with anti-flood wall for Zhuchengqu; 2) 1192m earth embankment for Caijinta Protection Circle; 3) 648.5m long mortar rubble slope-adherence retaining wall and slope protection for Zhuchengqu Protection Circle; 4) A total of 9 water gates for three protection circles; 5) 2 electric drainage stations of 220kw for the three protection circles. All the above parts are included in the resettlement plan. The land acquisition and resettlement focuses on the first three parts. All the project impacts and resettlement measures are detailedly examined and all the indexes, rehabitation method and compensation standard are checked and approved by the local government in the project district. 2. The project executing agency for the Hunan Flood Management Project is the Key Project Office of Hunan Provincial Water Resources Department (PWRD). Following ADB requirements, a draft resettlement plan (RP) has been prepared by PWRD under the assistance Hunan Hydro Power Design Institute (HHPDI) and the TA consultants. This is based on detailed survey of resettlement impacts and extensive consultation among affected people and local governments. B. Scope of Land Acquisition and Resettlement 3. The proposed Sangzhi County Urban Flood Control Subproject will affect 11 administrative villages (residential committees), 24 villager’s groups, and 8 enterprises and institutions in Liyuan Town of Sangzhi County. According to the detailed impact survey, about 4.5 ha of land will be acquired, of which about 78.26% is farmland, including 0.84% dry farmland, and 77.42% vegetable land. The remaining 21.74% is flood land and state-owned land. Additionally, a further 8.5 ha (approx.) of land will be occupied temporarily during the construction phase. Based on per capita farmland in affected villages, the farmland acquisition will affect 26 households and 116 persons. This will include 20 households and 86 persons affected by permanent land acquisition. 56 persons need to be resettled in project-affected area. On average, each affected person would lose only 0.01 ha of farmland, which represents 16.91% loss of their current farmland. 4. Along with land acquisition, a total of 26459.84 m2 of buildings would be demolished, including 176 persons of 37 households. About 98.6% houses are made of brick and concrete or brick and wood. For affected rural households, they will be moved a short distance to another site within their original village. 5. Other affected assets include traffic, telecommunications and electrical infrastructure, wall, sunny yard, ponds for fish and lotus cultivation, walls, and graves, etc. All lands, housing and other

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assets will be compensated at replacement value. C. Policy Framework and Entitlements 6. For people unavoidably affected, the resettlement objective is to achieve equal or better income and living standards in line with the PRC Land Administration Law (1998) and the ADB’s Policy on Involuntary Resettlement. The PWRD will ensure that any people losing land, housing, other assets or income source will be assisted to fully restore their income and living standards. In 2000, the Hunan Provincial Government issued a Land Administration Decree to implement the Land Administration Law (1998), which stipulates the regulations for land compensation, resettlement subsidies, young crop compensation, house compensation and other measures to carry out resettlement. According to the policy, the total compensation (land compensation, resettlement subsidy and young crop) will be set at CNY 10,678 per mu for irrigated farmland; CNY 7,474 per mu for dry farmland, CNY 4485 per mu for flood land, and CNY 10678 per mu for residential area in state-owned lands. Those people losing land temporarily during construction will receive a payment equivalent to production value foregone for the period of loss, which is expected to be 2 years. The land used temporarily will be restored by the contractor to the original condition, or else additional funds will be provided to the owner to restore the land. For structures to be demolished, replacement value will be provided to the affected households based on compensation rates adopted in the affected Cities, which is RMB 380 yuan/m2 for brick concrete structure in town, and 303 yuan/m2 for brick wood structure in town. For those affected urban households, they will not be provided with housing plot in principle, and the compensation standard for urban residential land is set at 62 yuan/m2 according to the compensation standard of land utilized for residence in town. There will be no reduction in house compensation for depreciation, and people will be allowed to salvage materials from their old houses. D. Resettlement Strategy 7. Efforts to minimize resettlement effects have been made after consultation with local officials during the setting of the dike alignment in the initial feasibility study. The change of routing of certain sections of new dikes during feasibility study has resulted in 20% reduction of total investment, and the number of relocated households was kept to only 43. For those unavoidably affected, the resettlement strategy is to replace any losses of housing, land, other assets, infrastructure and income. 8. The project would involve the acquisition of 52.88 mu of farmland (include 18.13 mu for non-agriculture household), and land acquisition will affect 86 persons of 20 households. Since the impacts are widely dispersed among 7 villages and 17 village groups, the actual losses will not be significant at village group level, averaging only 4.96 mu per village, and 1.74 mu per household.

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But for most affected villages and groups, the land holding is relatively high, and thus the land acquisition impact could be mitigated through a process of land readjustment amongst the villagers and adequate compensation. Based on extensive consultation, detailed economic rehabilitation plans have been developed for all affected villages, which are included in the RP. According to the RP, all affected persons will be either provided compensation directly or replacement land through village land readjustment so as to ensure that all village members have sufficient land to farm. For those villages that adopt land readjustment, they will utilize the compensation funds to improve farm conditions, develop cash crops, and various non-farm activities. 9. The Key Project Office of Water Resources Department in Hunan Province will ensure that the resettlement entitlements are provided to the affected people before ground clearance and demolition begins. Land compensation and resettlement subsidy will be paid to the affected village collectives. Housing, young crop and other asset compensation will be provided directly to the affected people. Compensation for infrastructure such as electrical and communication facilities will be paid to the concerned government departments for restoration. 10. The resettlement regulations have standard provisions for moving allowance to assist the affected people during the transition phase. Also, the subproject contractors will be requested by PWRD and Sangzhi PMO to give priority allocation of unskilled jobs to those householders who are to be resettled during the construction period. This will be handled through consultation with the township and village leaders. E. Institutional Arrangements 11. The Hunan Province ADB Loan Project Management Office will assume the overall responsibility for implementing resettlement according to the approved RP. The Hunan Province Project Resettlement Office will be directly responsible to co-ordinate the subordinated the work relations between each county (municipality, district), strengthen the leadership in project implementation, and ensure the smooth going-on of principal part of project construction, land acquisition, and relocation for resettlement. Sangzhi County Project Implementation Leading Group is The leaders-in-charge from Sangzhi County People’s Government will be responsible for the Sangzhi County Project Construction Leading Group whose main responsibility is to strengthen the leadership in project implementation in its jurisdiction, co-ordinate the work relations between each subordinated county (town, subdistrict), and ensure the smooth going-on of principal part construction of project. The municipal PMO under the Leading Group will be established to handle the daily activities. The municipal resettlement offices under the municipal PMO will take the primary responsibility for the resettlement consultation, implementation and timely delivery of

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entitlements, with assistance from concerned township and villages. F. Vulnerable Groups 12. Among all the affected people, about 139 persons of 69.3% are ethnic minorities, such as Tujia, Bai, Miao minorities. They live on this same land generation after generation, communicate each other in Chinese same as the Han people. Most of them married the Han people, and their living customs and social habits are no different to Han people. 13. Among the affected people, about 9 persons are classified as extremely poor and vulnerable, accounting for 4.5% of all the affected people in affected villages. Most of them are the urban poor who are entitled to the minimum living safety allowance and those disabled or elderly living alone. Under the Resettlement Plan, vulnerable groups will receive the following additional assistance: (i) physical help in housing construction and relocation free of charge and (ii) a special subsidy to enable them to maintain their living standards while constructing their houses. The specific amount for such assistance will be determined according to the actual condition and their needs. For this purpose, the local PMO agreed to set aside a special fund of 1% of the total resettlement cost, which will be used to provide direct and needed help for the vulnerable people. G. Consultation and Grievance Redress 14. The Land Administration Law 1998 requires disclosure and consultation with the affected people, who should be notified about the key elements of the RP during meetings and interviews. Prior to implementation, there will be further consultations arranged by township and village officials to discuss specific impacts in each village and how they will be addressed. The people losing housing will be offered a choice of housing sites; and those losing agricultural land will have the opportunity to consider suitable income replacement options. All the villagers will be able to have input to decisions on how to utilize the collective compensation funds. 15. Six months prior to resettlement implementation, a resettlement information booklet will be distributed to all affected townships, villages and households by PWRD and Sangzhi PMO. The information booklet contains the resettlement scope, expected timeframe, compensation rates for land and other assets, other assistance to replace assets, relocation and economic rehabilitation strategies, and the grievance redress mechanisms. The county, township and village officials will ensure that any concerns raised by the people affected are quickly addressed. 16. In case of grievance, people affected will submit their oral or written complaint first to the village committee or the township resettlement office. If their complaint is not settled in 10 days, they can seek redress at the Sangzhi County resettlement office or Sangzhi PMO, within one month. If still unresolved within two weeks, the PRO of PWRD will try to achieve a solution. Final redress, if necessary, would be sought in the civil courts, in accordance with the Civil Procedures Act.

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H. Monitoring and Reporting 17. The detailed plan for internal and external monitoring and evaluation is included in the RP. PWRD will engage a qualified monitoring agency to carry out independent resettlement monitoring and evaluation. The independent monitoring agency will ascertain the extent to which the affected people have (i) received their full entitlements on time and (ii) fully restored their livelihoods, income levels and living standards. It will also conduct a baseline survey prior to resettlement, semi-annual investigations during resettlement and annual survey updates for two years after the completion of resettlement. The household survey will include a representative number of those severely affected by loss of land, those losing housing, and those classified as minorities and/or economically vulnerable. 18. A quarterly reporting system is being established in the PRO. PWRD will report to ADB on the progress of land acquisition and resettlement through resettlement progress reports. The PWRD will also provide ADB with copies of the independent monitoring and evaluation reports to be prepared twice a year during resettlement implementation and once a year after resettlement completion. After completion of land acquisition and resettlement, PWRD will prepare a resettlement completion report and submit this to ADB. I. Finance and Implementation Schedule 19. The RP budget estimate is CNY 15.2979 million or US$1.89 million, for all costs including compensation, resettlement subsidy, payment for other assets (e.g. housing, equipment), moving allowance, vulnerable groups subsidy, fees for resettlement administration, and monitoring and evaluation. PWRD will guarantee to supplement the resettlement budget, as may prove necessary, to meet any shortfall which emerges in achieving the resettlement objectives. 20. The resettlement implementation schedule has been prepared based on the Subproject construction timetable agreed by the EA with ADB. It is planned that land acquisition would be carried out over in December 2005, and concluded in December 2007. The housing relocation will be completed between April 2006 and May 2007. According to this schedule, the farmland readjustment will be conducted in 2006, and the livelihood and living conditions will be completely recovered in 2007.

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1. General Description of Project 1.1 Project Background Hunan Province is located on the south bank of middle reaches of Changjiang River, bordering Jiangxi Province on the east, neighboring the Wuling Mountains on the south, connecting Guangdong Province and Guangxi Province, and close to the Guizhou Province and Chongqing City with the unbroken mountains in Guizhou and Chongqing areas. Changjiang River separates Hunan Province and Hubei Province on the north, and nearly 70% cities of Hunan Province are located in mountainous areas or hilly areas. These cities lie in the areas with relatively high ground elevation, and the landform varies greatly. These areas are subject to the flash flood though they are affected little by the Dongting Lake and the propping of tail water level of the four rivers. Because the river level in mountainous areas rises sharply and abruptly with great flow velocity, the cities along the river are always destructively damaged. In November of 1999, Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources worked out the report on urban flood-control planning in Hunan Province according to Flood-control Planning Outline for Changjiang River Drainage Area and Compilation Outline for Urban Flood-control Planning (Ministry of Water Resources [1998] No.215 Document). This report covers 91 cities, plans for the 18.30 million urban populations, and 2253km2 urban areas. The embankment-construction-oriented project plan is determined in the report, and the existing embankments to be heightened and reinforced are 1037.16km in total, and the would-be-built embankments total 600.53km. Only the cities of above-county-level and once seriously damaged by the flood in the mountainous areas of Hunan Province will be covered by this urban flood-control project in this time. They shall be the economy developed area, such as Xiangtan, Zhuzhou, and Hengyang, which are all the very important industrial cities, boasting the various industries of machinery, electronics, metallurgy, chemicals, building materials, paper making, mining, medicament, and foodstuff. And, of the local areas these cities shall be the financial, communications, and business centers as well as the science and education centers, where the municipal or county government is located, and moreover the distributing center of agricultural produce, industrial product, and commodities. Their economic status is very important. These cities are the main centers for the economic development of those areas with dense population, and are clustered with properties. If these cities are submerged or suffered great losses, the economic development of local areas will be seriously affected. In addition, the manpower and material resources are abundant in these cities; it is the main rear base for flood-control and providing disaster relief. The submergence of these cities will bring the disaster relief and

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rehabilitation works into a passive situation. In years, the government at every level in Hunan Province and the local masses took great pains and sacrificed a lot for fighting floods in these cities, and enormous achievements were achieved. According to statistics, in the 36 urban areas undertaking the project, total 286.628km long flood-control embankments, and 141 drainage water gates, and 124 drainage pump stations of 15648kW have been built. Because the flood-control works is improving slowly, the present urban flood-control standards of these cities are low, which are only for the 4-year-occurrence~20-year-occurrence floods, and their waterlogging drainage abilities are only for floods between 3-year-occurrence~8-year-occurrence, and only a few cities are in the fortified status, while most cities are undefended or incompletely defended. At present, the urban flood-control standard in project area is low. The flood disasters hit there in successive years. According to historical record, great floods occurred in 1980,1981,1983, and 1988 after the frightful flood cataclysms in 1954 and 1955. The losses caused by flood and waterlogging rose year after year. In 1990s, flood disasters frequently happened, and the losses due to the flood disaster rose sharply. In 1991, 1994, 1995, 1996, 1998, and 1999, large floods and waterlogging disasters happened successively, which caused great losses. Many cities were submerged wholly or partly, and nearly all cities are damaged by flood and waterlogging to various degrees. In 1991, the losses caused by flood disaster amount to 760 million yuan; in 1993, the losses caused by flood disaster amount to 1870 million yuan; in 1994, the losses caused by flood disaster amount to 3090 million yuan; and the great floods in 1995,1996 and 1998 each caused over 5000 million yuan losses, reaching 5610 million yuan, 10900 million yuan and 5973 million yuan respectively. Such enormous losses caused by flood and waterlogging disasters have seriously hindered the life and property of people in urban areas. Therefore, the construction progress and urban flood-control project strengthening shall be speeded up and beefed up to facilitate the economy development being in a speedy, stable and forward way. Thus, the people’s life and property can be safeguarded, the strong points will be given full play and the weak ones will be avoided, the economy development will be guaranteed by constructing and perfecting the necessary flood-control and waterlogging treatment facilities. Sangzhi County is located on the upper reaches of Lishui River, the gradient of river is great, the flood comes rapidly, and the water level rises sharply. The houses by street were usually built along the first terrace of the Lishui River and Youshui River where the landform is low and thus these areas are constantly under the threat of flood. There is almost no flood prevention and waterlogging drainage facilities. In the 80s of last century, many flood control facilities were started to built, especially in 1992, although the flood control embankment for the area from gymnasium, Old urban area, to Gaojiaping was built with a total length of 2600m, the construction failed to meet the design

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requirements due to the great financial gap, only the scouring protection problem was solved instead of achieving the function of urban flood control. The built Gaojiaping Flood Control Embankment crest elevation is only 258.0m, and that of Old urban area is only 255.0m, and Helong gymnasium 258.5m, which are lower than the 20-year-occurrence design flood level by 4~6m, and lower than the flood level in 1998 by 7~8m. It can only resist the ordinary floods in average years. The waterlogging drainage facilities in urban area are vulnerable, being only a few gutters. Sangzhi County is the core flood control sub-project county utilizing the loans from ADB. Through project implementation, the flood-control and waterlogging ability of this city will be greatly improved. The flood-control standard will rise from present 2-year-occurrence to 20-year-occurrence. The waterlogging treatment standard will rise from the present 2~5-year-occurrence to 10-year-occurrence, which greatly relieves the flood-control burden of urban areas of Sangzhi County, and facilitates the sound development of society. 1.2 General Situation of Project 1.2.1 Areal Geographic Location Sangzhi County lies on the northwest part of Hunan Province, on the upper reaches of Lishui River, bordering Cili County and Wulingyuan District, and neighboring Yongding District of Zhangjiajie City on the south, Longshan and Yongshun Counties on the east, and Hefeng of Hubei Province on the north. The total area of county town is 3474km2. Sangzhi County town (once named Liyuan Town) is located on the south of county area, on the interjunction place of Lishui River and its branch Youshui River, east longitude 149°0.9′35″, and north latitude 29°24′. The schematic figure of geologic location of Sangzhi County Urban flood control project is shown in Attached Figure 1. 1.2.2 Construction Scale and Content of Project Sangzhi County urban flood-control project is a core sub-project of urban flood-control project for hilly areas in Hunan Province, utilizing the loans from ADB. It comprises both the flood-control and waterlogging drainage works. The main construction elements of construction for the project of Sangzhi County in feasibility study phase are as follows: 1) Build new anti-flood wall 5891m for main urban area and Gaoping Protection Circle, main urban area 1400m long earth embankment incorporating the anti-flood wall for urban area. 2) Build 1192m long new earth embankment for Caijinta Protection Circle. 3) 648.5m slope protection lined with mortar rubble in the protection circle of major urban area. 4) Build altogether 9 water gates for the three protection circles. 5) Build altogether 2 electric drainage stations of 220KW for three protection circles. 1.2.3 Project Investment Estimation and Planned Progress

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According to Feasibility Study Report on Urban Flood Control Project of Sangzhi County of Hunan Province Utilizing Loans from ADB compiled by Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources. The total investment in the project is estimated to be 95.60 million yuan, of which the investment for resettlement is RMB 15.2979 million yuan. According to the project progress, the total construction period of this project is 37 months, of which the construction period of main body works is 35 months. 1.2.4 Socioeconomic Benefit of Project The implementation of urban flood-control project will greatly improve the flood control standard from the present 2-year-occurrence to 20-year-occurrence, and the waterlogging treatment ability from the present 2~5 year-occurrence to 10-year-occurrence, which will safeguard the properties and life of people to maximum; The construction of flood control embankment and urban road, dock, and blow-off pipes may combine with the embankment alignment renovation. Which will not only greatly relieve the chaotic traffic in bustling urban areas, but also beautify the environment, supply a sound recreation and rest place for residents; In addition, the implementation of the project will greatly alleviate the threat on the life and properties of people due to the flood and waterlogging, safeguard the people for living and working in peace and contentment, and lay a solid foundation for industrial and agricultural production. The social benefit and economic benefit are enormous. According to the economic evaluation analysis in the feasibility study report, the accumulated economic net present value (ENPV) of project is 31.76 million yuan (is=12%), the financial economic internal rate of return (EIRR) is 16.0%, and benefit-cost ratio (EBCR) is 1.36. The financial benefit index of every item is good. 1.3 Project Affected Area Three flood control protection circles are planned to build with regard to the geographic location, landform characteristics, the status quo of flood-control works and riverway, and the overall urban planning of Sangzhi County town. Of the three protection circles the first is the major urban area Protection Circle for the main urban area, from Chixi Bridge, through Beimen Bridge and Youshui Bridge, to the Cotton and Ramie Native Product Company, with a total 4.6km long embankment alignment to protect Old urban area and Shangjiaping area; The second is the Gaojiaping Protection Circle, which starts from Youshui River Bojiachong, passing the Youshui Bridge, Beimen Bridge of Lishui and Youshui River converge mouth, and then turn to the left bank of Huashui River, and finally ends at the Badouxi Dam, embankment alignment is 2.691km for the protection of Gaojiaping area. The third is the Caijinta Protection Circle, the embankment alignment starts from Chixi Bridge along the right bank of Lishui River to the Liyuan Town Paper Mill, the embankment alignment is 1.2km long for the protection of Caijinta area. The total length of embankments of the

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three areas is 8.09km. The main engineering measures concerned are embankment consolidation and newly building, renovation and newly building the water gates and electric drainage station, plus the temporary lands for project construction and borrow pit. The land acquisition areas due to the project refer to unrecoverable areas on which the residents are seriously affected in production and living due to the project construction in land acquisition area. In this phase, the land acquisition affected area is determined according to the recommended plan of the project design in the feasibility study phase, the on-site laying out and adjustment shall accord with the 1/2000 topographic map and the designed vertical and transversal profiles. The project only involves 11 villages (residential committee), 24 villager’s groups of Liyuan Town of Sangzhi County. The final land acquisition and relocation scope may be partly altered with the deep going of the design. 1.4 Compilation of Resettlement Plan 1.4.1 Basis and Objective for Report Compilation 1.4.1.1 Basis for Design 1) Hunan Province National Economic and Social Development “the Tenth Five-year” Plan and Long-range Plan for 2015 2) Sangzhi County National Economic and Social Development “the Tenth Five-year” Plan and Long-range Plan for 2015 3) Urban General Planning of Sangzhi County (2001-2020) 4) Statistical Yearbook of Sangzhi County (2001-2003) 5) Urban Flood-control Planning Report of Sangzhi County 6) Feasibility Study Report on Sangzhi County of Hunan Province Urban Flood-control Project Utilizing Loans from ADB (Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources) 1.4.1.2 Policy Foundation 1) National laws and regulations 2) Laws and regulations in Hunan Province 3) “Involuntary resettlement policy” of ADB (published in November of 1995) and “Immigration Manual ------practical and operable guidance on practice” (published in 1998) 1.4.1.3 Objectives of Policies 1) Adopt the engineering, technical, economic measures to avoid or minimize the quantities of material goods to be removed and relocated; If the land acquisition and relocation is unavoidable, try best to adopt the effective measures to minimize the impact on the local residents due to the land acquisition and relocation.

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2) In project preparation phase, conduct the social economy investigation and compile the relevant resettlement plan; 3) The resettlement shall be based on detailed physical indices in terms of relocated material goods and compensation standard in order to increase or at least restore the income and production levels for the affected people; 4) Promote resettlement in a developing mode. The resettlement in the rural areas shall be land-based, supplemented with possible employment in second or tertiary industries. 5) Encourage the resettlers and original residents in resettlement area to take part in the resettlement planning; 6) Try best to resettle in the original community. 7) The resettlers and the former residents in resettlement area shall all be benefited from the project. 1.4.2 Method of Report Compilation The Key Project Management Office under the Water Resources Department of Hunan Province as project EA is responsible for overall resettlement preparation. The relevant resettlement design units, consulting units and local government shall all participate in the process. From December of 2004~January 2005, with the active support from local governments in Sangzhi County, the designers of HPWRHDI conducted the general surveys and statistics on the physical indices for the land-acquisition-affected area. Based on census survey, detailed sample survey on social economic conditions and attitudes of the affected people was also carried out. In investigation, designer had consulted with the PMO (project management office) of Sangzhi County and held several resettlement coordination meeting attended by the government department at every level and representatives of resettlers from affected area. Comments were made on the resettlement plan, economic rehabilitation options, and compensation, which were the basis for developing RP. According to the current national policies, laws and regulations and the requirements on resettlement by ADB, the resettlement team carried out detailed analysis on the degree of impact and feasibility of proposed rehabilitation for each affected township (Sub-district) in project area. The resettlement plan was further revised according to the opinions and the site visit by PPTA experts. The completed draft resettlement plan will be reviewed and endorsed by both HPWR and local government before submitting to ADB approval.

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2. Project Impacts 2.1 Measures for Avoiding or Reducing to the Minimum the Land Acquisition and Relocation Impacts 2.1.1 Measures for Reducing the Land Acquisition Impacts in Project Design Phase Reasoned technically and professionally, the schemes of flood-control scenic road have been revised and optimized for several times since the project was launched, in order to minimize the impacts on the local social economy due to the project construction. The main objectives of scheme optimization are to minimize the land acquisition, demolition and relocation, and project cost, and to facilitate the project construction. 1) In project planning and scheme comparison, try to thick more about the impacts on local social economy due to the project construction, and make this the key factors in scheme comparison and optimization. Three defense schemes have been developed for the Sangzhi County urban flood-control project according to the river system, landform characteristics, existing embankment status, and the present urban construction status in planning area. Scheme 1: Reservoir scheme: Considering the existing Helong and Badouxi Reservoirs on the upper reaches, they are unable to help the county town prevent the 20-year-occurrence flood. And it is uneconomical and unpractical to heighten the Helong Reservoir to meet the reservoir capacity requirement. Scheme 2: embankment scheme: considering the landform conditions of Sangzhi County, the present deck elevation of Beimen Bridge is 263.27m, while the 20-year-occurrence flood level is 263.5m, Beimen Bridge is the traffic main artery connecting both banks of Youshui River and accessing to Longshan and other places. The traffic will cut off at that time, and the flood control and protection objective will be unachievable. If rebuilding the bridge, investment increase is inevitable, and many other public services need to be renovated. In addition, in the long term, after the establishment of Liangshuikou, Xinjie, and Helong Flood-control Reservoirs, the flood-control standard of Sangzhi County will be over 100 year. Considering the status quo of urban facilities, and the long-term Lishui River flood-control planning, this scheme shall be abandoned. Scheme 3: Combine the reservoir with embankment. For this scheme, to proportion the flood control task of reservoir and that of embankment is the key to determine if this scheme is reasonable and feasible. The embankment can meet the upper limit of flood-control ability, taking the Beimen Bridge for controlling, about equal to the 10-year-occurrence flood standard. And meanwhile the Helong Reservoir shall undertake peak defending task of 20-year-occurence floods and 10-year-occurence

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flood differences. If the flood-control task undertaken by embankment declines, about equal to 5-year-occurrence flood-control standard, then the reservoir shall undertake the flood peak defending task of 20-year-occurence flood and 5-year-occurence flood difference. The storage capacity for peak defending is 44.10 million m3, and Helong Reservoir will be unable to accomplish the task. 1) Combine the works of reservoir with embankment. Embankment will undertake the almost 10-year-occurence flood-control task. This is economic and reasonable, saving about 20% investment if compared with the mere embankment scheme. Through comprehensive study, the scheme III is chosen for the Sangzhi County urban flood control project in the design of this time. 2) The direction of alignments shall be based on the existing embankments in so far as possible. In design, try to occupy less area. Try best to lay the embankment alignment along the river in the section with no residents or few residents. Try best to minimize the house demolition and avoid occupying the cultivated lands of relatively good irrigation. In the densely populated areas of cities and towns, the alignment of new embankments shall be kept away from the high-rise buildings or multi-floor buildings to minimize the quantities of demolition and relocation works. 3) Optimize the construction design, shorten the construction period, and reasonably arrange the house relocation and construction period, try best to reduce the losses of resettlers’ properties. For example, the house relocation and rebuilding shall be conducted in the farm slack season, and the use the lands after reaping the young crops on them. Try best to utilize the wastelands as the expropriated land, because on which the construction period is long (over two years). 4) In the design, fully consider the inconvenience brought about to the life and production of local residents due to the embankment construction. In general, for the convenience of local residents, recover the damages of channel system, mechanical dock, communications facilities and other infrastructure after embankment construction to ensure the complete functions of infrastructure. 2.1.2 Measures for Reducing the Impact due to Land Acquisition in Project Construction The lands occupied in this project are distributed in linear form. As for the whole project area, the project construction will not greatly affect the local industrial and agricultural production, people’s livelihood and social economy. The land acquisition and relocation along the linear area will not bring about much impact. But for minimizing the impacts on the local area due to the project construction in so far as possible, special attention will be paid to set out the construction site and choose the construction scheme, and prevent the unnecessary land acquisition and house demolition. The following measures shall be adopted:

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1) Before demolition and relocation, organize the relevant persons to conduct the on-spot survey. Try to relocate lesser or do not relocate the houses that are unnecessary or can be partly removed in practice. 2) Before building demolition due to the temporary land occupation by the project, report to the unit of owner via PMO to empty the buildings. Or set up the temporary housing in the unit area for resettlement. After the project completion, set up new buildings and return to the original owner or employer unit. 3) For losses suffered by resident due to the demolition and relocation, adequate compensation shall be paid according to the replacement value. Try best to minimize unfavorable impacts on resettlers. 4) The resettlement area shall be located at the place close to the original residential areas so as to maintain the existing social relationship for the affected people, and on the other hand it will also reduce the commuting distance for the affected people. 5) Notify the affected enterprises in advance, and arrange sites for relocating them. Compensate their losses, try best to shorten the interruption period, and negotiate with the County Project Management Office to provide proper rehabilitation for affected employees. 6) During relocation and resettlement, for the convenience of residents and enterprises to be resettled, for carrying on the resettlement work smoothly, and minimizing the loss and relieving the burden on resettlers, the concerned local functional departments shall vigorously support the resettlers. 7) Strengthen the system of public participation. Before the project construction, clarify the project commencement time and planned project construction progress by putting Notice in the project affected area and the resettlement area, make the compensation policies for land acquisition and resettlement public, and undergo the supervision from the resettlers and original residents in resettlement areas; In project construction period, use the local materials by preference. For benefiting the affected persons from the project construction, use the local transports and laborers if the technical conditions allowed. 8) Reduce the dust and strengthen the health management for builders. The construction unit shall carefully plan the route for transporting the earthwork and stonework. Measures shall be adopted to guarantee that the soils and stones will not be sprinkled along the way while the truck full of loading, and thus affect the environment tidiness. In construction period, a large number of laborers will come to the worksite to undertake all kinds of works and services. In order to guarantee the public security and orders in work site and the health of various groups in construction area, the project construction unit shall supervise and urge the builders to obey the regulations of local environment sanitation department, toughen the management on the healthy protection for builder group, timely clear the domestic waste on construction site, keep the construction area tidy, and prevent the

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occurrence and contagion of infectious diseases. 2.2 Investigation on Project Impacts 2.2.1 Investigation Contents During December of 2004~January of 2005, Hunan Province Hydraulic and Hydropower Design Institute, together with the Sangzhi County Water Resources Bureau, the government of each level, formed a joint investigation team. The team conducted the comprehensive survey on the project impacts according to the coverage determined in the project design and the 1:2000 geologic type topographic map in hand. The contents of investigation included the land acquisition, the land acquisition affected population, houses to be demolished and relocated, and auxiliary facilities, scattered trees, individuals engaged in small business, enterprises and institutions, and agricultural sideline production facilities and special facilities, etc. 2.2.2 Investigation Method 1) Investigation on Land Acquisition: The investigators on spot clearly found out the ownership of various lands according to the 1:2000 topographic map in hand. Measured and calculated the area of cultivated land, garden plot, woods, and various lands in the unit of villager’s group. 2) Demographic Census: In the investigation into the land acquisition and demolition, affected people was classified into three kinds, affected by land acquisition without relocation, affected by demolition and relocation without land-acquisition, and affected by both land acquisition and relocation. The actual affected population was further divided with regard to the non-agricultural population and agricultural population, through the comprehensive investigation in unit of household concerning the nationality, age structure, education background, and employment status. The population was checked on site according to the household register card, and the results of survey were registered in detailed lists for each family. 3) Investigation on Houses and Auxiliary Facilities: The comprehensive survey was conducted on structures of houses. The areas of houses were measured, the quantities of auxiliary facilities were counted household by household, and then they were registered in detailed lists. 4) Investigation on Scattered Trees: Counted on spot, the scattered trees in the project-affected area due to the land acquisition were classified, and fruit trees and other type trees were separately registered according to their types. 5) Investigation on Individuals Engaged in Small-scale Business: Individuals engaged in small-scale business were investigated and registered household by

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household. The investigating and statistical contents include the business scope, area of premise, number of employees, annual turnover, and operating profit, etc. 6) Investigation on Enterprises and Institutions: The following work on the information of affected enterprises in the land to be expropriated was surveyed and checked: name, site, department in charge of them, month and year of foundation, the area of factory buildings, lands for production, area of structures, number of staff, fixed net assets, annual output volume of major products, annual output value, annual profit turnover, lump sum of tax, and lump of wages per month, etc. 7) Investigation on Special Facilities: The quantities of special facilities on site were registered and checked in detailed lists in items by the investigator according to the 1:2000 topographic map of geologic type and the data supplied by department in charge. All survey results of physical indices were reviewed and confirmed by householders and local government and function department at each level. 2.3 Investigation Results on Project Impacts According to survey, the land acquisition and demolition for project implementation only involve 11 villages (residential committee), and 24 villager’s groups in Liyuan Town of Sangzhi County. See Table 2.3-1 for details of investigation results on project impacts.

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Table 2.3-1 Investigation Summary Table for Land Acquisition and Relocation Impacts in Sangzhi County Urban Flood-control Project

Liyuan Item Unit Total Remarks Town I. Administrative region 1Township(sub-district) Piece 1 1 2 Administrative village (residential of which 4 villages are affected by temporary Piece 11 11 committee) land acquisition of which 5 groups are affected by temporary 3 Villager’s group Piece 24 24 land acquisition II. Project affected population 1 Land acquisition impacts of which 6 households are affected by the Number of household Household 20 20 temporary land acquisition of which 30 persons are affected by temporary Population Person 86 86 land acquisition Population need economic Person 56 56 rehabilitation 2 Relocation impact Number of household Household 43 43 Population Person 201 201 Household need resettlement with new Household 40 40 house Population need resettlement with new Person 176 176 house 3 Affected units and enterprises Piece 8 8 Of which: number of staff Person 153 153 4 Affected individuals engaged in small Piece 8 8 business Of which: the number of employee Person 40 40 5 Project affected total population Person 60 474 III House and accessory structure (I) Residential house ㎡ 16860.04 16860.04 1Residential house in city and town ㎡ 16860.04 16860.04 Brick concrete structure ㎡ 15508.53 15508.53 Brick wood structure ㎡ 1044.26 1044.26 Simple structure ㎡ 307.25 307.25 (II) Non-residential house ㎡ 9599.80 9599.8 Brick concrete structure ㎡ 9030.55 9030.55 Brick wood structure ㎡ 505.75 505.75 Simple structure ㎡ 63.50 63.50 (III) Accessory structure 1 Wall ㎡ 283.96 283.96

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Table 2.3-1 Investigation Summary Table for Land Acquisition and Relocation Impacts in Sangzhi County Urban Flood-control Project

Liyuan Item Unit Total Remarks Town 2 Cement sunning yard ㎡ 1747.22 1747.22 3 Cement pond m3 9.81 9.81 4 Telephone Piece 24 24 5 CATV Household 34 34 6 Air-conditioning Piece 16 16 IV Permanent land acquisition mu 67.57 67.57 (I) Collectively-owned land mu 54.53 54.53 1 Cultivated land mu 52.88 52.88 Paddy field mu 0.00 0.00 Dry farmland mu 0.57 0.57 Market vegetable plot mu 52.31 52.31 2 Flood land mu 1.65 1.65 (II) Urban construction land mu 13.04 13.04 1 Residential land mu 11.32 11.32 2 Other land mu 1.72 1.72 V Temporary land mu 127.38 127.38 1 Dry farmland mu 12.74 12.74 2 Shrubbery land mu 25.48 25.48 3 Wasteland mu 89.16 89.16 VI Tomb seat 2 2 VII Special facilities 1 Traffic facilities Temporary road km 0.196 0.196 2 Electric facilities High voltage line km 1 1 Low voltage line km 0.7 0.7 3 Post line km 0.15 0.15 4 Water conservancy facilities Electric irrigation mechanical place/kw 1\17 1\17 dock

2.3.1 Land Affected by Project 1) Permanent Land Acquisition The permanent land acquisition in this project covers 7administrative villages (sub-district), and 17 villager’s (resident’s) groups in Liyuan Town. Various land with an area of 67.57 mu will be expropriated, of which the state owned urban land is 13.04 mu (including the town residential house land, 11.32 mu, and urban unused land, clearing, and other land, 1.72mu), collectively owned land acquisition is 54.53 mu (including dry farmland, 0.57 mu, market vegetable plot, 52.31mu, and flood

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plain, 1.65 mu). See table 2.3-2 for details of the statistical conditions of the investigation results of the permanent land acquisition in this project. 2) Temporary Land Acquisition The construction temporary land acquisition refers to the temporarily-borrowed land in the project construction period, including land acquisition of stone material yard, construction plant, construction warehouse, and temporary area for livelihood and temporary construction road during construction period. The total area of the construction plant, construction warehouse, temporary area for living quarters for the contractors, and temporary structures in the project is 14950m2. As they are mainly allocated in the project permanent land acquisition range along the embankment, there will be no temporary land acquisition impact to the layout of the construction plant, construction warehouse, and temporary area for livelihood during construction period. As the existing roads will be destroyed during project implementation process, corresponding compensation costs shall be paid to the municipal administration department. As the compensation costs are included in the project contract as one part of the project costs, they will be paid by the construction Contractor. Accordingly, the project construction temporary road land acquisition will not be counted and the compensation costs will not be estimated in the report. The main temporary land occupation impacts come from the soil and stone material yard in the project, including Zhangjiaping clay material yard, Dengjiaping clay material yard, Baijiachong weathering soil material yard, soil material yard of No. 1 Middle School of the County, Nanmenyu block stone material yard, and Yanbanpo block stone material yard. One town, five administrative villages, and five villager’s groups are involved. Various land with an area of 127.38 mu are temporarily expropriated, of which, dry farmland, 12.74 mu, shrubbery land, 25.48 mu, wasteland, 89.16 mu, and the mean time limit for land borrow is two years. See table 2.3-3 for details of the statistical conditions of the investigation results of the temporary land acquisition in this project.

21 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources Table 2.3-2 Table for Affected Land by Acquisition and Compaction of Sangzhi County Urban Flood Control Project

Cultivated Land (mu) Urban Construction Land Acquisition (mu) County Garden Land Flood Plain Township(Town) Village Group Total Paddy Dry Market Vegetable House Land Other Land (District) Subtotal (mu) (mu) Subtotal Field farmland Plot Acquisition Acquisition Sangzhi 1 7 17 67.57 52.88 0.57 52.31 1.65 13.04 11.32 1.72 Liyuan 7 17 67.57 52.88 0.57 52.31 1.65 13.04 11.32 1.72 Gaojiaping 18.29 18.29 0.57 17.72 Gaojiaping 18.29 18.29 0.57 17.72 Wuliqiao 8.536.88 6.88 1.65 Wuliqiao 6.294.64 4.64 1.65 Youku 2.242.24 2.24 Hepingjie 1.49 1.49 1.49 Donglu 1.49 1.49 1.49 Wenminglu 14.71 5.38 5.38 9.33 9.33 Cai 1, 2, and 6.23 3.89 3.89 2.34 2.34 3 Nongsi 1.491.49 1.49 Nongsan 3.15 3.15 3.15 Nong’er 0.2 0.2 0.2 1.49 1.49 1.49 (Taxation Bureau) Nongyi 0.92 0.92 0.92 0.38 0.38 0.38 (Agricultural Bank) 0.85 0.85 0.85 (Xinhua Bookstore) Zhujiatai 18.13 18.13 18.13 Liujiacun 8.3 8.3 8.3 Caixia 2.832.83 2.83 Caishang 7 7 7 Dongzhengjie 1.7 1.7 1.7 1, 2 1.7 1.7 1.7 Wangjiaping 4.722.5 2.5 2.22 0.5 1.72 Hejie 2.22 2.22 0.5 1.72 Wangjiaping 2.5 2.5 2.5

22 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

Table 2.3-3 Investigation Statistical Table of Project Temporary Land Acquisition in Sangzhi County Urban Flood Control Project

Temporary Land Acquisition (mu) Township Classification of Timber (Town, Origin Dry Shrubbery Remarks Material Yard Total Forest Sub-district) farmland Land Land Zhangjiaping Clay material yard 12.74 12.74 Dengjiaping Clay material yard 16.3 16.3 Weathering soil Liyuan Town Baijiachong 45.2 45.2 material No. 1 Middle School Weathering soil 30.4 30.4 of the County material Block stone Nanmenyu 9.18 9.18 material yard Liyuan Town Block stone Yanbanpo 13.56 13.56 material yard Total 6 127.38 12.74 25.48 89.16

2.3.2 Affected Population Due to Project 1) Affected Population Due to Land Acquisition The investigation of the affected population due to land acquisition of the project will be counted from two aspects, one is the actually affected population due to land acquisition of the project; the other is the number of agricultural population need economic rehabilitation according to the principle of Land Administration Law of the People’s Republic of China, namely, the economic rehabilitation shall be rearranged to the agricultural population who has lost all of their main productive materials - cultivated land. According to the physical materials indices in project land acquisition investigation, the number of people who need economic rehabilitation will be counted in villager’s groups. It is obtained by dividing the area of land acquisition for each village group with cultivated area per capita of each group. The result of population was 56 persons. It means that there are 56 agricultural persons who need economic rehabilitation by the project. As the project is distributed in linear shape along Lishui River and Youshui River, for most affected persons, they would only lose small part of lands. According to the site investigation and statistics, 60 households (472 persons) are actually affected by the project, of which, 54 households (442 persons) (including 193 employees in the enterprises and institutions, and small shops) will be actually affected by permanent land acquisition in the project, averaging only 0.21 mu cultivated land per person. About 6 households (30 persons) will be actually affected by temporary land acquisition.

23 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

2) Affected Population Due to Demolition According to the site investigation, 43 households (201 persons) shall be relocated in the project area (of which, agricultural population is 63 and non-agricultural population is138, and the area of the residential house to be demolished is 16860.04m2. Among the 43 households, 6 households will be affected with only attachments, and their main houses will not be affected. For the other 37 households (176 resettlers), the demolition will result in relocation and reconstruction of new houses for the affected people. 3) Employees in the Affected Enterprises According to the investigation, eight enterprises and institutions will be affected by the project construction, and there are 291 employees in all. 153 employees will be affected by the production and business stop/suspension to the demolition and reconstruction of the enterprise. 4) Affected Individuals Engaged in Small-scale Business According to the investigation, 8 small shops will be affected by the land acquisition and demolition in the project area. Most these small shops are managed by local residents with their residence. There are 40 persons employed in the 8 shops (only including the employees, the householder has been listed into the population of the residential house). All of them will be affected by the project when their businesses will be closed due to demolition and land acquisition. 5) Total of Affected Population Due to Project Through statistics, 60 households (472 persons) will be affected by the project. Among them, 17 households (78 persons) will be affected by land acquisition (without house demolition), which will include 6 households (30 persons) to be affected by the temporary land acquisition); 41 households (193 persons) will be affected by house demolition only (without land acquisition); and 3 households (8 persons) will be affected by both the land acquisition and house demolition. In addition, 153 employees will be affected by the enterprise and institution demolition, and 40 individuals will be affected by demolition of 8 small shops. Among the affected population due to land acquisition and resettlement, 56 agricultural persons need economic rehabilitation. About 37 households (176 persons) need to be rehabilitated through replacement housing; and 153 employees in enterprises and institutions and 40 employees in small shops will be affected for interruption of their business. See table 2.3-4 for details of the affected population in the project.

24 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources Table 2.3-4 Summary of Affected Population Due to Land Acquisition and Resettlement in Sangzhi County Urban Flood Control Project

Land acquisition, Demolition, without land Land acquisition and Population of Village Total Demolition is required Population in need Township without demolition acquisition demolition individuals engaged Affected Type (Residential of economic (Sub-districts) Number of Number of Number of Number of Number of in small-scale Committees) Population Population Population Population Population rehabilitation household household household household household business I. Permanent 54 442 11 48 41 193 3 8 37 176 56 193 land acquisition (1) House 3 54 249 11 48 41 193 3 8 37 176 56 demolition Liyuan Town 3 54 249 11 48 41 193 3 8 37 176 56 Wenminglu 37 171 35 164 2 7 32 149 7 Hepingjie 4 14 4 14 3 11 Wangjiaping 1 13 1 12 1 1 1 13 1 Wenchangjie 1 3 1 3 1 3 Gaojiaping 3 14 3 14 14 Wuliqiao 5 24 5 24 24 Dongzhengjie 3 10 3 10 10 (2)Demolition of 193 193 non-house Enterprise and 153 153 institution Individual Engaged in Small-scale 40 40 Business II. Temporary 6 30 6 30 land acquisition Liyuan Town 3 6 30 6 30 Zhangjiaping 6 30 6 30 III. Total of affected 1 8 60 472 17 78 41 193 3 8 37 176 56 193 population 25 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

2.3.3 Houses and Auxiliary Facilities to be Demolished 1) Affected Residential Houses and Auxiliary Facilities by the Project The demolished houses by the project will involve 4 villages (residential committees) in Liyuan Town of Sangzhi County. About 43 households (201 resettlers) will be affected, and all of them are urban residents. The total demolished houses amount to 16860.04m2,of which, there are brick concrete 15508.83m2, brick wood, 1044.26m2, simple structure, 307.25m2). Along with house demolition, there are cement sunny ground, 799.62m2, wall, 283.96m2, pond, 9.81m3, 16 air conditioners, 24 telephone sets, and CATV, 34 households. According to the investigation, in the project land acquisition area, most residential houses are owned by individuals. Most residential houses are one or two-floor houses with brick concrete structure and brick wood structure, and only a few houses are the old ones with wood structures or earth wood structures. Since many demolished houses were built in 1980s, the basic living conditions and the related facilities are considerably poor. Most residents also hope they can move as soon as possible, so as to improve their living conditions. See table 2.3-5 for details of the investigation conditions of the residential houses to be demolished in the project. 2) Affected Non-residential Structures by the Project According to the investigation, in the land acquisition area by the project, 8 enterprises and institutions and 8 small shops will be affected by the land acquisition and resettlement. The area of the demolished non-residential structure is 9599.8m2, of which, the brick concrete structure, 9030.55m2, brick wood structure, 505.75m2, and simple structure, 63.50m2 (Since 8 small shops are used for both residence and business, the area has been listed in the residential house to be demolished). The affected sunny ground is 947.6m2. See table 2.3-6 for details of the investigation conditions of the non-residential houses to be demolished in the project.

26 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

Investigation Table of Resident House in Sangzhi County Urban Flood Control Project Table 2.3-5

Population Main house (m2) Auxiliary structure Township Village Total Simple Air County Sunny Telephone CATV (Town, (residential Group Total of of Brick Brick structure Walls Pond conditioner (district) Household Agricultural Nonagricultural Subtotal Grounds (piece) (household) sub-district) committees) population house concrete wood (m2) (m2) (m3) (piece) (m2) Sangzhi 43 201 63 138 16860 16552.8 15508.5 1044.3 307.3 284 799.62 9.81 16 24 34 Liyuan 43 201 63 138 16860 16552.8 15508.5 1044.3 307.3 284 799.62 9.81 16 24 34 Wenminglu 37 171 46 125 13251 12943.9 11899.6 1044.3 307.3 284 799.62 9.81 13 20 29 Caiyi 5 20 8 12 1082.5 957.43 957.43 125 220.5 182.48 3 5 Caisan 5 20 12 8 1464.9 1413.91 1222.13 191.78 51.01 19.2 269.57 2 5 Nong’er 5 23 17 6 958.19 883.63 314.06 569.57 74.56 119.48 1 5 Nongyi 3 13 13 1144.2 1144.2 1144.2 2 2 Nongsan 8 42 5 37 3815 3808.06 3769.79 38.27 6.89 32.4 2 5 5 Nongsi 11 53 4 49 4786.4 4736.64 4492 244.64 49.77 44.22 195.69 9.81 11 7 7 Hepingjie 4 14 4 10 2214.6 2214.55 2214.55 1 2 3 Donglu 4 14 4 10 2214.6 2214.55 2214.55 1 2 3 Wangjiaping 1 13 13 840 840 840 2 1 1 Si 1 13 13 840 840 840 2 1 1 Wenchangjie 1 3 3 554.37 554.37 554.37 1 1 1 3 3 554.37 554.37 554.37 1 1

27 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

Statistical Table of Affected Organs by Land Acquisition of Sangzhi County Urban Flood Control Project Table 2.3-6

House (m2) Auxiliary structure Township (Town, Village (residential Main house Sunny District Unit Population Walls Cellar Pond sub-district) committees) Total (m2) Simple structure Grounds Subtotal Brick concreteBrick wood (m2) (Piece) (m3) (m2) Sangzhi 291 9599.8 9536.3 9030.55 505.75 63.5 947.6 Liyuan 291 9599.8 9536.3 9030.55 505.75 63.5 947.6 Zhujiatai 25 584.77 523.75 18 505.75 61.02 885.6 Paper Mill 25 566.77 505.75 505.75 61.02 Precast Yard 16 885.6 Public Houses of the Village 18 18 18 Gaojiaping 72.63 70.15 70.15 2.48 Public Houses of the Village 72.63 70.15 70.15 2.48 Wenminglu 235 7502.4 7502.4 7502.4 62 Mother and Child Health Care 37 630 630 630 Hospital Gaojiaping Suboffice of 88 1760.4 1760.4 1760.4 62 Agricultural Bank National Taxation Bureau of 110 5112 5112 5112 Sangzhi County Hepingjie 15 1440 1440 1440 Office Building of Sport 15 1440 1440 1440 Bureau

28 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

3) Affected Temporary Structure by the Project According to the investigation, there is no temporary structure in the land acquisition range of the project. 4) Affected Illegal Structure by the Project According to the investigation, there is no illegal structure in the land acquisition range in the project. See attached table 1 for details of the house demolition investigation within the whole project. 2.3.4 Scattered Trees According to the investigation, there are no illegal scattered trees in the land acquisition range in the project. 2.3.5 Affected Individuals Engaged in Small-scale Business According to the investigation statistics, there are 8 individual small shops in the affected range, and the operation area is about 524 m2, and the affected individuals engaged in small-scale business are 40. As the affected small shops are the unprofessional ones used for both private residence and business, and the operators mainly use the old houses or rent them to others for residence or operation for catering and motorcycle repairing, the scale is considerably small (the average operation area is about 65.5 m2), and their main customers are local residents, the flow population is relatively small, and the business is in a poor condition generally. As these individual small shops are mainly used for residence, the area has been listed in the residential house to be removed. See 2.3-7 for details of the affected individual commerce small shops in the project.

Table 2.3-7 Basic Conditions Table of Small Shops to be Demolished in Sangzhi County Urban Flood Control Project

Village Township Operation Operation Population of (Residential Operation Item (Sub-district) Employer Area (m2) Employer (Person) Committees) Liyuan 3 8 524 40 Wenminglu 4 390.8 27 Guo Caiyun 144.8 Catering 11 Xiang 65 Catering 4 Haisheng Motorcycle Wang Hubo 21 3 repairing Wang Yuqing 160 Catering 9 Hepingjie 3 113.2 11 Motorcycle Li Dayuan 43.2 3 repairing

29 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

Table 2.3-7 Basic Conditions Table of Small Shops to be Demolished in Sangzhi County Urban Flood Control Project

Village Township Operation Operation Population of (Residential Operation Item (Sub-district) Employer Area (m2) Employer (Person) Committees) Electrical Chen Dengyin 50 4 appliances Zeng 20 Glass 4 Fansong Wangjiaping 1 20 2 Meng Youfan 20 Hairdressing 2

2.3.6 Affected Enterprises and Institutions According to the investigation, 8 enterprises and institutions will be affected by the land acquisition and house demolition in the project area. The total number of employees is 291, the land acquisition is 72.67 mu, the original value of the fixed assets is 26.05 million yuan, and the annual tax is 33,000 yuan. See table 2.3-8 for details of the basic conditions of the investigated enterprises and institutions. 1) Enterprise: In the affected area, 2 enterprises will be affected by land acquisition and demolition by the project. There are 41 employees in these 2 enterprises. The land acquisition would amount 2.18mu of land areas. Of which, the main production workshops of Zhujiatai precast yard shall be demolished. As a result, it will be relocated completely affecting 16 employees. For Zhujiatai Paper Mill, since land acquisition and demolition only affect administrative structure or auxiliary structure, the main production and business operation will not be affected. 2) Institution: In the affected area of the project, 6 institutions will be affected by land acquisition of the project. There are 250 staff and the land acquisition of 70.49 mu land areas. Since only part of management houses of these six institutions will be affected by the land acquisition, no relocation is required. They could readjust the offices spaces within the enterprise by themselves, or rebuild the replacement structures.

30 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources Table 2.3-8 Basic Conditions Table of Affected Enterprises Due to Land Acquisition and Resettlement in Sangzhi County Urban Flood Control Project

Annual Area of Land Population of Original Value of Population of Affected Character of Main Taxes State of Name of Unit Acquisition Employees Fixed Assets Affected Degree Employees Due to Production Remarks Unit Products (10,000 Operation (mu) (Persons) (10,000 Yuan) and Business Stop (Person) Yuan) Total 8 72.67 291 2605.00 3.30 153 Enterprises 2 2.18 41 60.00 3.30 41 Part houses will be Paper Mill 0.85 25 Paper 45 2.5 Payoff 25 demolished Precast Main production Precast Yard 1.33 16 15 0.8 Payoff 16 slab workshops are occupied Institutions 6 70.49 250 2545.00 112 Public Houses of Houses will be 0.03 Zhujiatai Village demolished Public Houses of Houses will be 0.11 Gaojiaping Village demolished Mother and Child Office building of the Of which, 2 Normal Health Care 17.6 37 750 in-patient department 37 temporary operation Hospital will be demolished workers Gaojiaping Normal Part houses will be Suboffice of 7.56 88 145 28 operation demolished Agricultural Bank National Taxation Of which, 4 Normal Office building will be Bureau of Sangzhi 4.20 110 1000 32 temporary operation demolished County workers Office Building of Normal Office building will be 41 15 650 15 Sport Bureau operation demolished

31 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

2.3.7 Affected Special Facilities by the Project The investigators have conducted the site investigation and registration to the affected traffic facilities, transformation facilities, post line, and other special facilities to be resumed or rebuilt according to the project land acquisition range confirmed by the design. For the affected places in the project, mechanical farm road, 4.06km, 1 mechanical farm bridge, 2 pedestrian bridges, 1 culvert, 4 pairs of passenger ferries; 10KV high-voltage line, 0.09km, 380V low-voltage line, 0.68km, and 1 transformer; post line with specification of electric cable HYA3-0.5, 0.91km. See Table 2.3-9 for details of statistics about survey on the special facilities affected in project. Table 2.3-9 Investigation Table of Affected Special Facilities in Sangzhi County Urban Flood Control Project

Traffic Hydraulic Communications Transformer Facilities Village Facilities Facilities Facilities County Town (residential Electrical Hasty road High-voltage Low-voltage Telephone line Committees) pumping dock (km) line (Pole/km) line (Pole/km) (Pole/km) (kw/Place) Sangzhi 0.196 1 0.7 17\1 150 Liyuan 0.196 1 0.7 17\1 150 Wuliqiao 0.196 1 0.7 150 Gaojiaping 17\1 2.3.8 Affected Minorities by the Project Sangzhi County is a remote hilly county clustered with many nationalities, and Tujia Nationality, Bai Nationality and Miao Nationality are the leading parts. According to the statistics, there are seven townships of ethnic minorities in 29 villages (towns) of the whole county, the population of Tujia Nationality, Bai Nationality, Miao Nationality, Mongolian Nationality, Hui Nationality, Gaoshan Nationality, Zhuang Nationality, Man Nationality, Dong Nationality, Yao Nationality, and other 10 ethnic minorities amount to 377407, occupying 88.12% of the total population in the whole county, of which, 252793 persons belong to Tujia Nationality, occupying 59.02%; 99934 persons belong to Bai Nationality, occupying 23.33%, and 22357 persons belong to Miao Nationality, occupying 5.22%. Chinese is the universal language in all the minorities of Sangzhi County, they live on the same land for ages, and they intermarry, accordingly, they harmonize mutually in the fields of living habits and social custom, and other. Whereas, Tujia Nationality, Bai Nationality, Miao Nationality and other ethnic minorities still keep their own custom and characteristics. According to the investigation, about 139 persons of minorities will be affected by the project, accounting for 69.2% of the total affected persons (201 persons). They are mainly composed of persons from Tujia Nationality (including 85 persons, accounting for 42.3% of total persons), Bai Nationality (including 47 persons, accounting for 23.4% of total persons), and Miao Nationality

32 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

(including 7 persons, accounting for 3.5% of total persons). From conditions of households entry, the proportion of the ethnic minorities is considerably large. Generally, they have been there for ages, whereas, some come here for marriage. As every ethnic minority gets along with the Han Nationality in harmony for ages, the relationship among these nationalities is harmonious. For production structure of each minority family, the business and working outside as migrant labors are the main parts, the main revenues of agricultural population don’t depend on the land, but the multiple structures. The ethnic minorities are equal to the Han Nationality in the fields of land distribution, schooling of their children, politics, and others. For some aspects of enrollment to a higher school and tax fee collection, they are entitled to the preferential policies, which Han Nationality can’t enjoy. See table 2.3-10 for details of the contribution conditions of the affected ethnic minorities by the project.

Table 2.3-10 Distribution of Affected Minorities by Sangzhi County Urban Flood Control Project

Tujia Nationality Miao Nationality Han Nationality Bai Nationality Total Township Village Percentage Percentage Percentage Percentage in County Name of affected (Town, (Residential Group People in total People in total People in total People total (District) household people Sub-district) committee) (population) population (population) population (population) population (population) population (population) (%) (%) (%) (%)

Sangzhi 201 85 42.3 7 3.5 62 30.8 47 23.4

Liyuan 201 85 42.3 7 3.5 62 30.8 47 23.4

Wenminglu 37 171 71 41.5 7 4.1 48 28.1 45 26.3

Caiyi 5 20 4 20.0 3 15.0 12 60.0 1 5.0

Caisan 5 20 9 45.0 10 50.0 1 5.0

Nong’er 5 23 12 42.2 4 17.4 4 17.4 3 13.0

Nongyi 3 13 13 100.0

Nongsan 8 42 27 64.3 11 26.2 4 9.5

Nongsi 11 53 19 35.8 11 20.8 23 43.4

Hepingjie 4 14 14 100.0

Donglu 4 14 14 100.0

Wangjiaping 1 13 11 84.6 2 15.4

Si 1 13 11 84.6 2 15.4

Wenchangjie 1 3 3 100.0

2.3.9 Affected Cultural Relics and Vulnerable Groups by the Project 1) Affected cultural relics in the project: According to the investigation, there is no cultural relic and

33 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

historical site which shall be vitally protected in the project land acquisition range. 2) Women: As the rights, interests, and statuses of women in Sangzhi County are the same as those of men, it’s not needed to give special attention to them. 3) Vulnerable group: Mainly include underprivileged families (per capita income is less than 130 yuan/month), handicapped families (disabled persons), families that the elder lives alone, and families of minorities. There will be 9 vulnerable persons affected by the project, accounting for 4.5% of the total affected population. They are mainly the underprivileged population and elderly who are entitled to Urban Minimum Living Allowance. During resettlement process, the affected vulnerable groups in the project will be further confirmed through comparison and analysis between the member structures in resettlement facilities, employment status of labor, family resources, and other conditions and the data of the local civil affairs departments. Once the affected households are proved to be the vulnerable groups, the project execution agency will give special help to them during resettlement implementation process. See table 2.3-11 for details of the distribution conditions of the vulnerable groups.

Table 2.3-11 Distribution Table of Affected Vulnerable Groups by Sangzhi County Urban Flood Control Project

Total Population (Person) Affected Population (Person) Town Village Total of Vulnerable (Township) (Residential Population Proportion Population Proportion Remarks Vulnerable Group (Sub-district) Committee) (Person) (%) (Person) (%) Group (Person) (Person) Liyuan 7676 375 4.9 201 9 4.5 Wenminglu 846 44 5.2 171 7 4.1 Hepingjie 888 33 3.7 14 1 7.1 Wenchangjie 848 29 3.4 3 Wangjiaping 917 65 7.1 13 1 7.7 Gaojiaping 1680 67 4.0 Wuliqiao 392 21 5.4 Zhujiatai 1200 65 5.4 Dongzhengjie 905 51 5.6

2.4 Impact Analysis of Project 2.4.1 Project Impact Characteristics 1) In the project land acquisition area, the impact on the population, residential houses is considerably little. The affected population by the project demolition occupies 3.6% of the total population in the village and group, whereas the absolute value of the acquisitioned cultivated land is considerably

34 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

small, while the relative value is considerably large, and the requisitioned cultivated land is 52.88 mu, occupying 20.8% of the total cultivated land in the village and group. 2) The affected population and house by the project construction is 43 households (201 persons) and 16860.04m2 respectively, they are mainly centralized in Wenming Road of Liyuan Town, occupying 78.6% of the total affected population. In the houses to be demolished, 92% houses are brick concrete and structures. 3) The permanent land acquisition with an area of 67.57 mu is required for the project construction, of which, the cultivated land to be acquisitioned is 52.88 mu (including dry farmland, 0.57 mu, and market vegetable plot, 52.31 mu), accounting for 78.3% of the total land to be acquisitioned. The rest 21.7% is flood plain, land for state residential houses and unused land. These cultivated land to be acquisitioned are distributed in 17 resident’s (villager’ s) groups in 7 villages (residential committees) of Liyuan Town in Sangzhi County, with the linear and scattered characteristics. 4) The 8 individual small shops affected by project construction are the unprofessional ones for both residence and business, the scale is considerably small, the average operation area is 65.5m2, and the business profits are lower generally. 5) Eight enterprises and institutions will be affected by land acquisition and demolition in the project area, as only the auxiliary production houses or production houses of these enterprises and institutions are affected, its normal production, operation or office will not be largely impacted by project construction. 6) There is no important special facilities in the project land acquisition and resettlement area, except for few high-voltage transmission lines and mail lines, the rest is the rural small infrastructure. 2.4.2 Impact Analysis Evaluation The construction of project will damage the original production system in the affected area, and certain impacts will be brought to the local production and livelihood accordingly. The losses of the land resources will destroy the material conditions for livelihood of part of the farmers, so, they shall adapt to new environment for working and livelihood again. The staff of the design unit have fully considered the destructive effect of land acquisition on the local production and livelihood system during project design process, and accordingly, they have constantly optimized the project design, adopted project measures to reduce the land acquisition area, and relieved the impacts of project construction on local production and livelihood. At the same time, as the project is distributed in linear shape along Lishui River and Youshui River, according to the analysis on each villager’s group, about 7 villages (residential committees) will be affected by the permanent construction land acquisition of the project, as a result, the cultivated land with 52.88 mu will be occupied permanently, averaging 7.55 mu per village. Five villages need economic rehabilitation, the existing cultivated

35 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

land per capita is 0.71 mu, and the rest cultivated land per capita is 0.59 mu after occupation, the occupation proportion is 16.91% accordingly. Since the affected resettlers by the project are urban residents, the incomes of the agricultural population are mainly from the non-agricultural revenues (the agricultural revenues for each family are 1859 yuan, accounting for 26.3% of the total revenues of 7078 yuan), it’s planned that 36 agricultural producers will change to undertake the breeding industry. Through analysis, their revenues will not be reduced owing to less land (the net income per capita before land acquisition is 1397 yuan, whereas, the target income value of 2005 is 1497 yuan. Through the economic rehabilitation, the incomes of the resettlers will reach 2000 yuan and 1620 yuan respectively, all above the income target value), while, maybe they will need a certain time to adapt to the new production mode. Through the above analysis, the impact of the project construction on the production and livelihood of the local residents is considerably little, the production and livelihood of the resettlers will exceed the level before land acquisition through proper rehabilitation measures. Nowadays, the topography of the project impact area is low and flat, and wide, most areas often suffer from flood and waterlogging disasters, which restrict the development of local economy, the project construction has provided a chance for reconstruction of production system and social system for resettlers. After completion of the project, the capability of flood control and emergency service along the new embankment will be greatly improved, and the disastrous degree of flood will be reduced, so as to provide a better environment that safeguard peoples’ lives and properties. At the same time, the circulation of the agricultural products and byproducts will be accelerated, and the development of local agricultural production will be improved. In addition, combinations of adjustment of agricultural plantation structure, perfection of farm and hydraulic facilities, reconstruction of farmland with low and middle yield of the resettlers, full exploitation of land resources potential are also the protective policies for cultivated land in project land acquisition according to the Land Administration Law of the People’s Republic of China. According to the compensation system for cultivated land acquisition, and the policy of “Cultivate what is occupied”, try best to compensate the lost cultivated land, so as to reach a balance of acquisition and reclamation. Through resettlement planning, try best to resettle the resettlers in the areas with considerably superior natural and traffic conditions, and social environment. Additionally, the preferential treatment and support will be given to the resettlers from policies, technologies, funds, and substances, so as to ensure that they will resume or reach the former level as soon as possible.

36 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

3. Natural and Socio-Economic Conditions of the Project-Affected Areas 3.1 Natural Conditions of the Project-Affected Areas 1) Topographical and Geological Conditions The urban area of Sangzhi County is classified as the low hilly trough valley corrosion structure and steep riverbank with slope angle of 40°~60°. The valley displays in U shape, the riverway of Lishui River is 100~300m wide, that of Youshui is 70~80m wide, the riverway elevation is 256~246m, the two banks are developed into I-grade terrace continually with 0~200m terrace width and 262~258m terrace elevation. The embankment project is mainly located at the I-grade terrace. The geology structure of this region is located at the south-east wing of south-west slanting edge of Sangzhi ~ Guandiping with axial direction of N35°~50°E. There is no territorial fault passing through,

the terrane is singly slanting toward the right bank to the upstream, the attitude is N59°~70°E，

NW 37°~46°, basically longitudinal valley. In the last few years, the region consists of mainly intermittent umbo, and in the history has had no large earthquake record. According to the GB18306-2001 Version 1:4 million China Earthquake Peak Value Acceleration Regionalization Map, the earthquake peak value acceleration is less than 0.05g, and the characteristic cycle of earthquake response spectrum is 0.35s, and the corresponding earthquake basic intensity is less than VI degree. 2) Hydrologic and Meteorological Conditions The flood characteristics of Lishui Valley over Sangzhi County are mainly abruptly rising and abruptly declining with little peak. In general, the flood lasts 1~3 days, the annual max. flood usually occurs in May ~September, and the disastrous flood occurs in June ~August. The annual max. 24-hour rainstorm mainly occurs in May ~September, and the 24-hour rainstorm with over 150.00mm rainfall occurs in June ~August. This region is classified as the subtropical continental monsoon wet climate zone, with mild climate, adequate rainstorm and distinct seasons around the year. According to the statistics of Sangzhi County Meteorological Station, the annual average ambient temperature is 16.3 ; the mean annual precipitation is 1396.9mm; the mean evaporation is 1119.7mm; in flood season the mean max. wind velocity in April ~ September is 13.2 m/s, and the max. instantaneous wind velocity is 19.3m/s. On April 25 of 1983, the wind direction is south-south-west, while the usual most wind direction is north-east. 3) Soil and Vegetation The soil-forming parent material is various, mainly limestone weathering, as well as eggplant-colored sandshale weathering, plate shale weathering, sandstone weathering, red clay

37 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

parent material and river alluvial deposits. The soils are classified as 8 soil groups, 17 subgroups, 52 soil genera; the major categories include paddy soil, red soil, hilly yellow soil, yellow-brown soil, red limestone soil, black limestone soil, eggplant-colored soil and fluvo-aquic soil, of which the paddy soil has an area of 233,849 mu, and is the main soil for plantation. The project area has rich species resources, more than 3000 species. For the Badagongshan Mountain National Protection Area, there are 168 families, 631 genus and 1446 kinds of textile plants, of which, there are 32 species belonging to the state precious plants, accounting for more than 61% of the total 52 species in Hunan Province, and there are 34 kinds of plants belonging to the provincial precious plants in Hunan. 4) Mineral Resources The mineral resources are in variety of kinds, including more than 30 kinds such as coal, iron, alum clay, sulfur iron ore, copper, zinc and lead, of which, 11 kinds such as coal, iron and alum clay have high reserve and quality, and are of high value to modern industrial exploitation, especially marble, which has a lot of kinds, good quality and rich reserve. 5) Tourist Resources There are a lot of places of historic interest and scenic beauty in Sangzhi County such as Tianzi Mountain with a beautiful title of Natural Rest Home, Jiutian Cave which is called the No.1 Cave in the Asia, Fengluan Brook, Kuzhu Ancient Town, Chixi Drifting as well as the Badagongshan Mountain State Natural Protection Areas. The human landscapes mainly include Hongjiaguan, the former residence of He Long, and Liujiaping, the departure site for the No.2 Red Army to start the Long March. 3.2 Socio-Economic Conditions in the Affected Areas of Project Sangzhi County is situated in the North-West of Hunan Province with a covering area of 3526km2 , a population of 0.4317 million at the end of 2003 (0.2246 million males and 0.2071 million females), of which, the urban population is 0.0529 million, an agricultural population is 0.3788 million, with a population density of 122 persons/km2 and a natural growth rate of 7.49‰. At the end of 2003, the whole county has an employed population of 14518, including 14144 for the person having regular jobs with total salaries of 168.12 million yuan, of which, the regular staff have the total salaries of 166.80 million yuan, per-capita salary of 11536 yuan and the per-capita net income of farmers is 1282 yuan. In 2003, the GDP was 936.83 million yuan, increasing by 9.85% than last year, including RMB 314.00 million yuan for the primary industry, increasing by 3.43%; RMB 226.80 million yuan for the secondary industry, increasing by 21.01%; RMB 396.03 million yuan for the tertiary industry, increasing by 9.53%. The percentage of the primary, secondary and tertiary industry three

38 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

industries were 34:24:42. The per-capita GDP was 2,175 yuan, increasing by 197 yuan. The main problems existing in the economic and social development include: the configuration contradiction of national economy was still prominent, the incomes growth for the farmers and urban low-income groups was still slow, and the employment and re-employment situations were still critical and pressing. 1) Agriculture and Agricultural Economy: The total output of agriculture, forestry, animal husbandry, sideline and fishing was 488.79 million yuan, increasing by 4.38%. Among the major agricultural products, some had the yield climbing but some had the yield declining. The forestry, based on the returning land from farming to forestry, focused on the products’ structure adjustment, forestry operation and protection of forest resources. The forstry output value was 66.01 million yuan, increasing by 2.04%, and the afforestry was 4,742 hectares and the raising of seedling was 107 hectares. The industry structure of animal husbandry was moderately adjusted, and among the major products, some yields were climbing, but some were declining. The fishing production was in steady increasement, but the total scale was slight, and the proportion in the entire countryside were still low. The aquatic products had a total output of 614 tons, increasing by 1.65%, including breeding output of 139 tons, increasing by 9.45%. At the end of 2003, the effective irrigation area was 8500 hectares, increasing by 20.73%; the total agricultural mechanic power was 125,498 kw in 9851 motors, increasing by 10.39% and 8.13% respectively; the mechanic cultivation of 2,620 hectares was completed, increasing by 10.38%; the electromechanical irrigation and drainage area was 8,290 hectares, increasing by 1.97%; the processing amount of farm products was 0.10 million tons, increasing by 0.60%; the power consumption in the rural was 12.61 million kw·hour, increasing by 19.63%; the chemical fertilizer usage was 37,600 tons, decreasing by 4.68%; the pesticide usage was 322 tons, decreasing by 1.23%; the agricultural membrane usage was 342 tons, increasing by 21.7%. In 2003, there invested 6.31 million yuan on the infrastructure construction and newly built and modified 300km roads between villages and villages’ teams, erected 28 bridges, erected and modified 39.8km high-voltage and low-voltage lines, laid 106km water pipes, newly built 272 biogas generating pits, helped 187 poor students and assisted 638 poor households. The total output value of the towns and townships enterprises completed 1659.28 million yuan, increasing by 3.63%, of which, the industries in the towns and townships completed 563.96 million yuan, increasing by 4.06%, and at the end of 2003, there existed 1304 enterprises with staff of 8914. 2) Industry: The industry had an increase value of 194.92 million yuan, increasing by 21.88%. In the county there were 16 separate dimensional enterprises, which realized profits of 4.82 million yuan

39 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

with an increase of 2.00 million yuan, taxs of 16.84 million yuan, with an increase of 6.14 million yuan. The deficiency was reduced from 54% to 31%, and the deficient enterprises had the deficiency of 1.50 million yuan, decreasing the deficiency of 0.58 million yuan. 3) Investment on Fixed Assets and Architecture The total investment for fixed assets was 436.04 million yuan, increasing by 23.65% than last year, including 298.89 million yuan for the state-owned and other investments, 48.12 million yuan for the collective investment and 89.03 million yuan for the individual investment. The architecture completed an increase value of 31.88 million yuan, increasing by 16.63% than last year. 4) Traffic and Postal Communications The whole county has the highway mileage of 1970 kilometers, including 223 kilometers for the attendance roads, 477 kilometers for the roads between the county and townships, and 1114 kilometers for the roads between villages. The county possesses 4661 civilian vehicles. The postal communications completed the operation of 42.61 million yuan, increasing by 5.48% than last year. The telephones go through in 512 administrative villages. The mobile phones have the users of 26000 households, increasing by 28.97%. The Internet users are 4832 households, increasing by 28.68%. 5) Commerce, Tourism and Foreign Trade The whole county realized 501.49 million yuan total consumable retail, increasing by 10.58% than last year. It possessed 26 markets of the variety with total trade amount of 280.00 million yuan. The whole county received 0.3354 million tourists domestic and abroad, increasing by 55.29%, realizing tourist revenue of 49.91 million yuan, increasing by 64.99%. The whole county introduced the foreign capital of 26.30 million yuan, increasing by 104% than last year. 6) Finance The financial revenue was 64.64 million yuan, increasing by 23.47%, including 47.69 million yuan for the general budget revenue, increasing by 14.56%, and 11.46 million yuan for the “Two Taxations” revenue transferred by the Central Government. The general budget expenditure was 249.38 million yuan, increasing by 11.93% than last year. 7) Sci-Tech and Education In the whole county, there exist a variety of specialized technicians of 5129, including 113 senior technicians and 1749 middle technicians. A series of practical yield increasement technologies including Double Hybrid paddy, grow seedlings and transplantation of corn mulching film and rape in fixed distance got continual popularization. For the whole year, there were 10 items awarded the

40 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

sci-tech improvement & achievement prizes, including 1 Special Award, 2 First Prizes, 3 Second Prizes and 3 Third Prizes. At the end of 2003 the year, there exist 398 schools of different kinds, including 3 Middle Schools, 1 secondary technical school and 374 primary schools with total in-school students of 58778 and teachers of 3,118. In addition, there exist 37 kindergartens and 101 preschool classes with 7,024 children. The 9-year compulsory education has been popularized in the whole county. 8) Cultural Propaganda, Public health and Sports: The whole county possessed 1 film publisher, 15 film gangs, 4 cinemas, 1 cultural center 1 library and 16 cutural stations, which basically keep stable. There are 7000 ground satellite receiving stations in the county with a coverage ratio of 92.2%, and at the end of 2003 the year, there were 10,200 households to possess wired TVs. The whole county owned 47 healthy institutions, including 2 hospitals, 38 health centers, 3 special prevention stations, 1 females & children health protection station with 834 professional health technicians, and by the end, as well as 759 beds. In the county there exist 1 stadium, 1 gymnasium and 1 school of physical training. 9) People’s livelihood and Environment Protection: The family planning rate was 95.76%, the population birth rate was 13.59‰, and the natural growth rate was 7.49‰. At the end of 2003, the county was awarded the Top Class County of Family Planning Excellent Service. At the end of 2003, the whole county had an employed population of 14,518, decreasing by 1,312, including 14,144 for the person having regular jobs with total salaries of 168.12 million yuan, of which, the regular staff had the total salaries of 166.80 million yuan, per-capita salary of 11,536 yuan, increasing by 13.9%; the per-capita net income of farmers was 1,282 yuan, increasing by 4.65%; the Engel coefficient was 57.28%.

3 The annual mean air total suspended grain was 0.162 mg/m , of which, SO2 content was 0.185 mg/m3, belonging to the state second-grade standard; the ground water environment quality was the state third-grade standard and the drinking water environment quality was the state second-grade standard. 10) Population and Social Security: At the end of 2003, the whole county had a total population of 431,702 with an increase of 1981, including 224,630 males and 207,072 females; 378,797 agricultural population and 52,905 non-agricultural population; 49,470 Han nationalities and 382,232 Minorities, in which, Tujia, Bai and Miao had a total population of 379,532, accounting for 59.6%, 23.3% and 5.1% of the total population in the county respectively. 11) In the county, there were 9,511 employees in 281 units having purchased the social endowment insurance, and 14,466 employees in these units having purchased the basic medicare insurance. For the 3,275 retirees and 8994 unemployed persons, the fares for protecting their min. livelihood

41 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

were timely issued in sufficient amount. In addition, there arose 21 cases of labor pirate and dispute to be examined, thus maintaining the legal rights and interests of enterprises and laborers. 3.3 Socio-Economic Conditions of Townships (Sub-districts) and Villages among the Affected Areas of the Project The land requisition will have certain influences on 1 township (Sub-district), and 11 administrative villages (residential committees). In Dec. of 2004 through Jan. of 2005, under the arrangement of the Provincial PMO, the local PMO and the design institute organized a thorough investigation on of the socio-economic conditions, production and living statue in the affected townships (sub-districts), and administrative villages (residential committees) with participation of the Municipal Project Resettlement Office, the removed households design institutions for resettlement and other associate units. 1) Socio-Economic Conditions in the Affected Towns (Sub-district) According to the investigation, the project merely have effects on Liyuan Town, which has 31 villages and residential committees with a population of 40,176 in 12,454 households, including an agricultural population of 20,802 in 5,629 households, accounting for 51.8% of the total rural population. The total plantation area is 12,965.2mu (including 11,153.5 mu paddy fields), and the per-capita plantation area is 0.62mu; In 2003, the total agricultural revenue was 27.60 million yuan. For the details, see Table 3.3-1. 2) Basic Conditions in the Affected Villages (residential committees) The investigation shows that the 8 affected administrative villages (residential committees) have a population of 7,676, including an agricultural population of 814, accounting for 10.6% of the total population; The current cultivated land area is 269mu, including 10mu for paddy fields, 259mu for dry farmlands (including market vegetable plot), and for the agricultural population, the per capita farmland is 0.33 mu. According to the investigation, the income per capita of the 8 administrative villages (residential committees) is RMB 1,370 yuan/year~1972yuan/year. In 2003, the average income per capita of the affected villages (residential committees) was RMB 1379yuan/year, slightly higher than the average level for Sangzhi County or 1,282 yuan per capita. Among the 8 administrative villages (residential committees), there are only 5,657 minorities, or 73.7% of the total population. The main minorities are Tujia, Bai, Miao, Menggu, Hui and Dong Minorities. In addition, there are 375 persons in the vulnerable group such as poverty- stricken, disabled families deformities and aged people’s families that live alone, accounting for 4.9% of the total population. For the basic conditions of the affected villages in the project, see Table 3.3-2.

42 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

Table 3.3-1 The Socio-Economic Conditions of the Affected Towns and Townships (Sub-districts) by Sangzhi County Urban Flood Control Project

Indices Unit Total Liyuan Town I Basic conditions (I) Residential committee 31 31 (II) Villagers’ committee 31 31 1. Villages with electricity 31 31 2. Villages with postal communication 31 31 3. Villages with telephone 31 31 4. Villages with highways 12454 12454 (III) Households in villages household 6825 6825 1. Non-agricultural households household 5629 5629 2. Agricultural households household 40176 40176 (IV) Population in Villages person 19374 19374 1. Non-agricultural population person 20802 20802 2. Agricultural population person 12917 12917 (V) Labor forces in villages person II Agricultural production conditions 12965.2 12965.2 (I) Cultivated area mu 11153.5 11153.5 1.Paddy field 1811.7 1811.7 2.Dry farmland 7024 7024 (II) Grain cultivated area mu 0.62 0.62 (III) Per capita plantation area of agricultural mu/person population III Economic conditions of countryside (I) Total economic income 10000 yuan 2760 2760 1.Total agricultural income 10000 yuan 1759 1759 2.Net agricultural income 10000 yuan (II) Income per-capita of farmers Yuan 1272 1272

43 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources The Basic Conditions of the Affected Villages (Residential Committees) by Sangzhi County Urban Flood Control Project Table 3.3-2

Underprivileged Village Population (person) Plantation area (mu) National Minority Town and township Plantation area of Income of per Group (Residential Remarks (Sub-district) Agricultural Non-agricultural Paddy Dry per capita (mu) capita (yuan/year) PopulationPercentage Population Percentage Committee) Total Total population population field farmland (person) (%) (person) (%) The dry farmland Liyuan 7676 814 6862 26910 259 0.33 1379 5657 73.7 375 4.9 includes market vegetable plot. Including Tu and Bai, Wenminglu 846 99 747 39 39 0.39 1392 714 84.4 44 5.2 etc. Minorities Including Tu and Bai, Hepingjie 888 20 868 0 0.00 1370 634 71.4 33 3.7 etc. Minorities Including Tu and Bai, Wenchangjie 848 72 776 0 0.00 1410 526 62.0 29 3.4 etc. Minorities Including Tu and Bai, Gaojiaping 917 59 858 120 120 2.03 1100 868 94.7 65 7.1 etc. Minorities Including Tu and Bai, Wangjiaping 1680 308 1372 5 5 0.02 1827 1008 60.0 67 4.0 etc. Minorities Including Tu and Bai, Wuliqiao 392 140 252 15 10 5 0.11 1513 358 91.3 21 5.4 etc. Minorities Including Tu and Bai, Zhujiatai 1200 86 1114 81 81 0.94 1972 821 68.4 65 5.4 etc. Minorities Including Tu and Bai, Dongzhengjie 905 30 875 9 9 0.30 1421 728 80.4 51 5.6 etc. Minorities

44 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

3.4 Basic Conditions of Relocatees 3.4.1 Investigation Objectives 1) Introducing the positive significance of urban flood control project to the relocatees; 2) Investigating and comprehending the affected degree of the relocatees; 3) Soliciting opinions from the relocatees to reflect their willingness in the schedules of rehabilitation for production and livelihood; 4) Analyzing the economic incomes and expenditures, determining the economic development objective and providing accurate basis for resettlement planning; 5) Establishing economic incomes model for relocatee’s families; and analyzing and forecasting changes of economic incomes. 3.4.2 Investigation Content The socio-economic investigation is classified into two kinds: one kind is investigation on the basic. Social and economic conditions of affected households, another is investigation on the wish of the relocates. 1) Basic Conditions of Affected Households Basic Family Condition: will include family members, age, sex, educational level, career, nationality, housing area and structure. Household Properties: The means of livelihood consist of big furniture, color (black and white) TV, refrigerator, washing machine, VCD, air conditioner, water heater, electric fan, electric cooker, motorcycle, bicycle, telephone, etc; While the means of production comprise land, water surface, household industrial and subsidiary production as well as production machinery such as tractor, thresher, grinder, water pump, livestock for cultivation, agricultural tricycle, automobile, motorcycle and barge. Agricultural production conditions and income levels: The contracted land comprises cultivated land, garden plot, woodland and lands for other usage; The yield of agricultural products consist of grain yield, other crops’ yield and grain possession; The household incomes include incomes from plantation, animal husbandry and other non-agriculture; The household expenditures include expenditures for living, interpersonal communication, education, agricultural costs, taxes and others; The annual net income per capita of households. 2) Investigation on relocatees’ willingness The investigation on relocatees’ willingness mainly consists of the awareness on the project, channels to comprehend the project, attitude, expected production and resettlement modes in addition to the other most concerned problems. 3.4.3 Investigation Method and Procedure

45 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

Between Dec. of 2004 and Jan. of 2005, the resettlement survey team, under the cooperation of the governments at all levels in the project area, conducted a detailed survey on the basic social economic conditions of the affected households and the relocatees’ willingness 1) Investigation on the Basic Conditions of Affected Households For the investigation on the basic conditions of affected households, a sampling survey in site was made to the affected households. After filling the questions of survey form, the affected households made signature for confirmation. 37 households within the affected area of the project were selected as the sample, accounting for 61.7% of the total affected households. The selected samples basically are representative and typical and can be used for basis for the project impact analysis. For the detailed sample survey distribution of removed households, see Table 3.4-1. Table3.4-1 Sampling Distribution Table of the Affected People Households due to the Resettlement Project

Sampling Township Affected Total Affected Sampling Percentage Remarks (Sub-district) Villages Households Households (%) Total 8 60 37 61.7 Liyuan 4 43 37 86 Wenminglu 37 32 86.5 Hepingjie 4 3 75 Wenchangjie 1 1 100 Wangjiaping 1 1 100

2) Investigation on relocatees’ willingness and attitudes Investigation on relocatees’ willingnessfor adopts the mode of sample survey with a sampling ratio of 5~10%. The resettlement planning team prepared a survey form. The different levels of governments organize people to distribute survey forms in the project areas and ask affected people to fill up. In the affected area of the project, there are 6 survey forms issued to the relocatees, and 6 effective forms returned with an effective ratio of 100%. 3.4.4 Investigation Results and Analysis 1) Investigation on the Basic Conditions of Removed Households The sample survey and analysis shows that: Household Size of the affected households: 4.76 persons / family in average in the affected area of the project, including 3.01 persons for labor forces with age 17~60, 1.24 persons of younger than 17 years old, and 0.51 person of older than 60 years old. Gender Percentage: The male/female ratio in the project area is 1:1.02. Age makeup: The labour forces at age of 17~60 possess 63.1% of the total population, 26.1% for

46 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

younger than 17 years old and 10.8% for older than 60 years old. Ethnic Background: The 30.8% of the affected people are classified as Han Nationality, and 69.2% as the minorities. Educational level: In the affected area of the project, every 100 persons, there are 4 persons with educational level of higher than senior middle school, 68 persons with educational level of senior middle school, 60 persons with educational level of junior middle school, 33 persons with primary school and 11 illiteracies or half-illiteracies. Housing area per capita: The housing area for every household is 392.1m2 and that per capita is 83.9m2. The structures of houses are mainly brick-concrete and brick wood structure. The land contracted by the collective: In countryside, each household contracts 1.57 mu of cultivated land, averaging 0.33mu per capita; The grain yield of each household is 1248kg in average 338kg per person; Each household has average 11.3 live livestock for sale and 24.6 for poultry. Family property: For every 100 households, there are 172 TVs (21 for Black and White TV and 151 for Colour TV), 49 air conditioners, 86 refrigerators, 107 washing machines, 72 fixed phones, and 40 mobile phones. Economic incomes and expenditure: Each household has an annual total incomes of RMB 8645 yuan, averaging RMB 1816 yuan per household; Each household has an annual total expenditures of RMB 6302 yuan, the annual expenditure per capita is RMB 1324yuan; Each household has an annual net incomes of RMB 6564 yuan averaging RMB 1379 yuan per capita. For the total basic conditions of the affected households by the project, see Table 3.4-2.

Table 3.4-2 Samples of Ethnic Minorities Total Samples (37 households) (37 households) Items Unit Indices per Indices per Total Total household household I Affected household size

1.Total Population of Household person 17 6 4.76 128 5.12

Including: female person 90 2.43 65 2.6

2.Labor forces of 17~60 years old person 111 3.01 89 3.56

3.Population younger than 17 person 46 1.24 27 1.08

4.Population older than 60 person 19 0.51 12 0.48

II Educational level

1.More than senior high school person 4 0.11 3 0.12

2.Senior high school person 68 1.84 48 1.92

47 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

Table 3.4-2 Samples of Ethnic Minorities Total Samples (37 households) (37 households) Items Unit Indices per Indices per Total Total household household 3.Junior high school person 60 1.62 42 1.68 4.Primary school person 33 0.89 25 1 5.Non-educated person 11 0.3 10 0.4 III Nationalities 1.Han Nationality person 54 1.46 6 0.24 2.National Minority person 122 3.3 122 4.88

IV. Housing area

2 1.Housing area per household m 14508 392.1 9905 396.2 2.Housing area per capita m2 14766 83.9 1934.5 77.38 V. Agricultural production 1.Contracted plantation area per mu 58 1.57 39.25 1.57 household 2.Plantation area per capita mu/person 58 0.33 8.25 0.33 3.Grain yield kg 59488 1248 31200 1248 4.Grain occupation per capita kg/person 59488 338 8450 338 5.Livestock piece 418 11.3 282.5 11.3 6.Poultry piece 910 24.6 615 24.6 VI. Household property 1.TV piece 64 1.72 49 1.96 Including: color TV piece 56 1.51 48 1.92 2.Air Conditioner piece 18 0.49 14 0.56 3.Refrigerator piece 32 0.86 26 1.04 4.Washing machine piece 40 1.07 30 1.2 VII. Annual total incomes 319865 8645 222661 8906 1.Agricultural incomes yuan 68783 1859 49990 2000 2.Stockbreeding income yuan 68080 1840 59671 2387 3.Non-agricultural income yuan 183002 4946 113000 4520 VIII.Annual consumption expenditure yuan 233174 6302 166400 6656

1.Living expenditure yuan 124542 3366 100775 4031

2.Production expenditure yuan 76997 2081 44150 1766

3.Other expenditures yuan 31635 855 21475 859 IX. Annual household income 242868 6564 178500 7140

48 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

2) Basic Attitude of Affected People The sample survey and analysis shows that: Have knowledge with the project: 98.7% of the affected people claimed that they had knowledge of the project but 1.3% is on the contrary. Sources of information: 91.3% of the affected people get known from the investigation persons and 52.4% from the residents of the neighboring villages. Support attitude: All affected people hold an attitude of supporting to the project. Impact degree: 73.2% of the affected people think the impact is big (58.6% think the impact is positive, such as housing conditions improved, reducing flood loss, guaranteeing social stability; while 14.6% think the impact is negative, such as land area reduced and employment pressure increased), 15.8% think that is slight, 4.3% think that impact is small, and 6.7% think that there are no impacts. Resettlement Approach: For urban resettlers, 34.6% choose the cash compensation for rehabilitation, and would like to purchase houses by themselves; While 74.4% choose the in-kind rehabilitation through exchange of property and hope to have the replacement houses arranged by local PMO with same size as before. Economic rehabilitation: 71.5% of resettlers ask for cash compensation, and of 28.5% ask for replacement land through land adjustment. 3.5 Social and Economic Effects for Resettlement to the Affected Population The project implementation will produce a certain impact on socio-economic factor: 1. The affected area is located at the junction of the rural and urban areas with good infrastructure conditions, where the local farmers have a lot of opportunities in non-farm employment, such as day labor and small business. Most those surplus labor forces have moved into the second and tertiary industry or individual business, gradually moving out of reliance on the land. According to the investigation, in the affected Liyuan Town, there were 12917 employed labor forces, including 2057 non-agricultural population engaged in industry, architecture, traffic, wholesale and retail, accounting for 15.92% of the rural labor forces. Analysis from the incomes structure, the annual total income of the affected households was 8645 yuan, including 1859 yuan for the agricultural incomes, only accounting for 21.5% of the total income. The investigation shows that in spite of the land loss, the local farmers will suffer the decrease of agricultural incomes, however, due to the small proportion for plantation in the total incomes, they will have little impacts on their production and living. 2. For farmers with land plantation as their main livelihood resources, the land loss will result in the loss of complete or partial means of production, however, as the project is linearly distributed along

49 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

the Lishui and Youshui River, the land acquisition of the project will result in slight influence on the agricultural production of resettlers, on average every affected village will lose their land of 7.55mu. According to the on-site investigation, it is known that, in the affected 17 villager’s groups, all groups have the cultivated land proportion of less than 18.29mu, 1.7~6.88mu in general, and most groups have little impacts. In addition, in the affected villages the agricultural resettlement mode of newly local farmland adjustment is planned to adopt, which can try not to impact the traditional production mode and livelihood of the affected persons, and can restore, or even develop their living standard within short period of time; the cash compensation mode can also be directly adopted, so the farmers can put the land compensation costs into the agricultural operations such as adjusting plantation structure and developing greenhouse vegetables or other non-agricultural operations such as developing livestock breeding, which would increase their incomes and mitigate their poverty-stricken status, therefore, the land occupation will produce little impacts on their production and livelihood. 3. For relocated households, the process of moving and decorating new houses will consume certain manpower and material resources for the affected households, which need to be considered by the project sponsors. The PMO will, according to the associated policies, make compensation to their loss of moving and traffic costs, complete infrastructure costs around the new housing plot by the way of providing the necessary livelihood subsidy. In addition, the PMO and the local village committees will provide necessary assistance. Therefore, the impacts from the project will be reduced to the minimum. 4. For the relocated enterprises and institutions, relocation needs a period of time or a certain procedure to identify new spaces, which will affect normal operation for a period of time and will result in the loss of operation incomes for them. According to the investigation, the 8 affected enterprises and institutions have the auxiliary administrative houses and dwellings occupied, so their production and operation have slight impacts, in addition to the assistance from the local government and project functional departments, their normal operation will be restored or developed within the short time. The project construction will bring about a lot of influences to the residents and businesses within the project area, but the impact is slight and after completion of the project, it will create favorable conditions for further development of Sangzhi County, and facilitate the sustainable quick increase in economy.

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4. Legal Framework and Policy 4.1 Main Chinese Laws & Regulations and Policies for Resettlement 4.1.1 Policy Bases 4.1.1.1 National Laws and Regulations: 1. Land Administration Law of the People’s Republic of China. (The 8th Chairman Decree of PRC, issued on August 29,1998, starting implementation since January 1,1999) 2. Implementation Regulations for the Land Administration Law of the PRC. (The 256th State Council Decree of the PRC, issued on December 27,1998, starting implementation since January 1,1999) 3. Urban Houses Demolition Administration Regulations of the PRC. (The 305th State Council Decree of the PRC, issued on June 13,2001, starting implementation since November 1,2001) 4. Provisional Regulations on Cultivated Land Acquisition Tax of the PRC. (The GF [1987] NO.27 issued by the State Council: A Notice about Issuing by the State Council) 5. The Decision by the State Council about Deepening Reformation and Strictly Enforcing Land Administration (The GF [2004] NO.28 issued by the State Council on October 21,2004) 6. The Directive about Perfecting the Compensation Resettlement System for Land Requisition (The GTZF [2004] NO.238 issued on November 3,2004) 4.1.1.2 Laws and Regulations of Hunan Province 1. Methods of Hunan Province for Implementing the Land Administration Law of the PRC. (Passed in the 14th Meeting of the 9th People’s Congress Standing Committee of Hunan Province on March 31,2000) 2. Methods of Hunan Province for Implementing the Urban Houses Demolition Administration Regulations of the PRC. (The 157th Decree issued by People’s Government of Hunan Province on July 12,2002, starting implementation since September 1,2002) 3. Implementing Methods of the Cultivated Land Acquisition Tax of Hunan Province (Amendment) (Issued by the Hunan Province People’s Government on October 4,1987, and amended as the decision about amending Implementing Methods of the Cultivated Land Acquisition Tax of Hunan Province by Hunan Province People’s Government on May 4,1998) 4. The Notice by Hunan Provincial Commodity Price Bureau and Finance Department about Reissuing Administration Institutional Charging Items and Standards of Hunan Province National Land Resource System (XJF [2003] NO.42)

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4.1.2 Relevant Laws and Regulations 4.1.2.1 National Laws and Regulations 1. Selected Provisions of Land Administration Law of the PRC Article 2: The State may, on the necessity of public interest, requisition land collectively owned in accordance with law. The State practises the system of paid-for use for state-owned land in accordance with law. However, appropriation of state-owned land use right by the State within the scope prescribed by law is excluded. Article 10: Peasants' collectively-owned land that belongs to peasants' collective ownership of a village according to law shall be managed and administered by the village collective economic organization or villagers' committee; the land that belongs separately to more than two rural collective economic organizations and owned collectively by peasants shall be managed and administered by the respective rural collective economic organizations or villagers' teams; the land that belongs to township(town) peasants' collective ownership shall be managed and administered by the township(town) rural collective economic organization. Article 14: Land collectively owned by peasants shall be contracted for management by members of the respective collective economic organization for cultivation, forestry, animal husbandry and fishery production. The duration of land contracting and management shall be 30 years. The contract issuing party and the contractor should conclude a contract agreeing on the rights and obligations of both parties. Peasants who contract management of the land have the obligation to protect and utilize the land pursuant to the agreement in the contract. Peasants' right to contract land for management is protected by law. Within the duration of land contracting and management, in the event of appropriate adjustment of land contracted among individual contractors, it must have the consent of over two thirds of the members of the villagers' conference or over two thirds of the villagers' representatives, and be submitted to the competent department of agriculture administration of township/town People’s Government and People’s Government at the county level for approval. Article 31: The State protects cultivated land and strictly controls turning cultivated land into non-cultivated land. The State practises the system of compensation for the occupation and use of land. For the occupation and use of cultivated land for non-agricultural construction with approval, the unit that occupies and uses cultivated land shall be responsible for the reclamation of cultivated land equivalent to the quantity and quality of cultivated land occupied and used in accordance with the principle of "quantity of reclaimed land being equivalent to that occupied". Where there are no conditions for reclamation or the reclaimed land does not conform to requirements, cultivated land

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reclamation fee should be paid as prescribed by the provinces, autonomous regions and municipalities directly under the Central Government, the special-purpose fund shall be used for the reclamation of new cultivated land. Article 46: For land requisitioned by the State, local People’s Government at or above the county level shall, upon approval pursuant to legal procedures, make an announcement and organize its implementation. Owners and persons of the right to use of the requisitioned land should, within the specified time period of the announcement, bring the ownership certificates to the competent departments of the local People’s Governments to enter into registration for compensation for land requisition. Article 47: For requisition of land, compensation shall be given in accordance with the original use of the requisitioned land. Compensation fee for the cultivated land requisitioned includes land compensation fee, subsidies for resettlement as well as compensation fee for ground appendixes and young crops. Land compensation fee for the cultivated land requisitioned shall be 6-10 times of the average annual output value in the three years prior to requisition. Subsidies for resettlement for the cultivated land requisitioned shall be calculated on the basis of the agricultural population that requires resettlement. The agricultural population that requires resettlement shall be calculated on the basis of the amount of cultivated land requisitioned divided by the average occupancy of cultivated land of the unit requisitioned. The rate of subsidies for resettlement per head of the agricultural population that requires resettlement shall be 4-6 times of the average annual output value in the three years prior to requisition of the said cultivated land. However, the maximum subsidies for resettlement for cultivated land requisitioned per hectare shall not exceed 15 times of the average annual output value in the three years prior to the requisition. The rate of land compensation fee and subsidies for resettlement for the requisition of other lands shall be fixed by the provinces, autonomous regions and municipalities directly under the Central Government, taking the rate of land compensation fee and subsidies for resettlement for the requisition of cultivated land as reference. Rate of compensation for ground appendixes and young crops on the requisitioned land shall be fixed by the provinces, autonomous regions and municipalities directly under the Central Government. For requisition of suburban vegetable plots of municipalities, the land use unit should, pursuant to relevant provisions of the State, pay to the new vegetable plot development and construction fund. Additional subsidies for resettlement may be provided for those peasants who require resettlement and cannot maintain their original living standards on the basis of land compensation fee and

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subsidies for resettlement the payment of which is effected pursuant to the provisions of the Second Paragraph of this Article subject to the approval of People’s Governments of the provinces, autonomous regions and municipalities directly under the Central Government. However, the total of land compensation fee and subsidies for resettlement shall not exceed 30 times of the average annual output value in the three years prior to requisition of the land. The State Council may, in accordance with the level of social & economic development, increase the rate of land compensation fee and subsidies for resettlement under extraordinary circumstances. Article 48: Upon determination of the scheme for compensation and resettlement for land requisition, the local People’s Government concerned should make an announcement and seek the views of the rural collective economic organization and peasants of the requisitioned land. Article 49: The rural collective economic organization of the requisitioned land should publish the revenue and expenditure of the compensation fee of the requisitioned land for the members of the respective collective economic organization and accept supervision. It is forbidden to embezzle or divert the land compensation fees and other related expenses. Article 50: Local People’s Governments at all levels should provide support for rural collective economic organizations and peasants of the requisitioned land for development, management and establishment of enterprises. Article 54: Use of state-owned land for a construction project should be obtained in the form of onerous use such as transfer. However, the following use of land for construction may be obtained in the form of appropriation subject to the approval of the People’s Government at or above the county level in accordance with law: (1) Land use by state organs and land use for military purposes; (2) Land use for urban infrastructure and land use for non-profit undertakings; (3) Land use for such infrastructure as energy, communications and water conservancy to which the state renders key support; (4) Other land uses prescribed by laws and administrative regulations. Article 57: Construction of a construction project and geological survey that need to temporarily use state-owned land or land collectively owned by peasants, it shall be subject to the approval of the competent department of land administration of the People’s Government above the county level. Among which, for temporary use of land within an urban planning zone, consent of the competent department of urban planning should be sought first prior to submission for approval. The land user should conclude a contract for the temporary use of the land with the competent department of land administration concerned or the rural collective economic organization and villagers' committee in

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accordance with the ownership of the land, and effect the payment of compensation fee for the temporary use of the land. User of temporary use of the land should use the land according to the use agreed on in the contract for the temporary use of the land and shall not construct permanent constructions thereon. The duration of temporary use of land shall generally not exceed 2 years. Article 62: One household of villagers in a rural area can only possess one housing plot, the area of which shall not exceed the standards prescribed by the provinces, autonomous regions and municipalities directly under the Central Government. Construction of villagers' residences in the rural areas should conform to the overall planning for township/town land utilization, and the best possible use of original house sites and idle land in the village. 2. Selected Provisions of Urban Houses Demolition Administration Regulations of the PRC Article 22: The relocater should provide compensation to the resettlers in accordance with this Regulations. For the demolition of the peccancy building and the temporary building over approval term, the relocater shall not provide compensation. But for the demolition of the temporary building within the approval term, the demolition should provide proper compensation. Article 23: The ways of demolition compensation can be money compensation or property rights transposition of house. The resettlers can choose the way of demolition compensation. Article 24: The amount of money compensation should be considered according to the position, use and building area of the removed house and shall be confirmed with evaluating price in the realty mart. Article 25: For the way of property rights transposition of house, the relocater and the resettlers should calculate the compensation amount of removed house and the house price for transposition to balance the price difference of the property rights transposition according to the Article 24 of this Regulations. The demolition of auxiliaries of non-public welfare houses shall not be solved with property rights transposition, but with money compensation by the relocater. Article 28: The relocater should provide houses that accord with quality & safety standards of the State for resettlement. Article 31: The relocater should pay demolition subsidies for the resettlers or the tenant. During the transition term, in case of that the resettlers or the tenant settles for himself/herself, the relocater should pay subsidies for temporary resettlement; in case of that the resettlers or the tenant uses the revolving house, the demolition shall not pay subsidies for temporary resettlement.

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3. Selected Provisions of Provisional Regulations on Cultivated Land Acquisition Tax of the PRC Article 2: The cultivated land called in this Regulations refers to the land for planting crops or the land that had been used for planting crops within the 3 years prior to acquisition. Article 3: All the units or individuals that acquire cultivated land for house building or for other non-agricultural construction, are the taxpayers of cultivated land acquisition tax (hereinafter called taxpayer), and should pay cultivated land acquisition tax according to this Regulations. Article 4: The cultivated land acquisition tax shall be calculated according to the actual area of acquired land by taxpayer and shall be assessed upon as the specified amount in one time. Article 5: The amount of cultivated land acquisition tax is controlled as follows: (1) Take county as one unit (same hereinafter). For the area where the average occupancy of cultivated land is under 1mu (including 1mu), the tax rate is 2-10 yuan/m2. (2) For the area where the average occupancy of cultivated land is 1-2mu (including 2mu), the tax rate is 1.6-8.0 yuan/m2. (3) For the area where the average occupancy of cultivated land is 2-3mu (including 3mu), the tax rate is 1.3-6.5 yuan/m2. (4) For the area where the average occupancy of cultivated land is over 3mu, the tax rate is1-5 yuan/m2. Article 9: The cultivated land acquisition tax should be assessed upon by the finance organ. After approving the cultivated land acquisition of unit and individual, the land administration department should give notice to the finance organ of same level in time. The unit or individual that is approved to requisition or acquire the cultivated land should declare tax-paying to the finance organ with the approval documents by the land administration department above county level. The land administration department shall assign land acquisition according to the tax-paying receipt or the approvable documents of requisition. 4. Selected Provisions from the Decision by the State Council about Deepening Reformation and Strictly Enforcing Land Administration (3) Strictly enforcing compensation system for land acquisition: The approved cultivated land acquired for the non-agricultural construction shall be compensated by the construction unit with the cultivated land of same quantity and quality. And the quantity and quality of cultivated land for supplement shall be converted according to its degree to prevent “more acquisition but fewer compensation, and compensation with bad cultivated land for cultivate land of high quality ”. The construction unit --- which can not compensate by itself ---- shall pay the cultivate land reclamation fee according to the provisions of each province, autonomous regions and municipalities directly

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under the Central Government. The cultivated land reclamation fee shall be administrated with special account, and can not be reduced or remitted or peculated. The cultivate land supplement fee for construction project invested by the government must be list into the project general calculation. (13). Properly resettling the farmers affected by land requisition: The local People’s Government above county level shall work out specific methods to ensure the further living of farmers affected by land requisition. The farmers affected by land requisition can take the usufruct of legally approved land for construction to buy a share of some projects with steady profit. For the inside of urban planning area, the local People’s Government shall list the farmers who will lose cultivated land because of land requisition, into urban employment system and set up system of social security; for the outside of urban planning area, during the process of land requisition, the local People’s Government shall, in its administration area, leave some cultivated land or arrange job for the farmers affected by land requisition; for the farmers, who will lose their cultivated land and basic conditions of production and living, the local People’s Government shall resettle them in other area. The department for labourer and social security shall, together with relevant departments, make a directive about employment training and social security as soon as possible. (14). Perfecting land requisition procedure: During the process of land requisition, the farmers’ ownership of collectively-owned land and the farmers’ rights for land contracting and management shall be protected. Before report and approval, the farmers affected by land requisition shall be informed about the use, position, compensation standards of land to be requisitioned, resettlement approaches; and the investigation results about the present situation of land to be requisitioned must be confirmed by the rural collective economic organizations and the farmers affected by land requisition; and if necessary, the department of land and resources shall, according to relevant provisions, organize evidentiary hearing. The necessary material for land requisition approval should include the relevant data as understood and confirmed by the affected farmers by land requisition. The coordination and judgement system for compensation resettlement dispute shall be established and perfected as soon as possible to protect legal rights of the affected farmers by land requisition and the land user. Except the special cases, all the approved items for land requisition shall be publicized. (15). Strengthening the supervision on implementation process of land requisition: Land can not be requisitioned by force, if the compensation resettlement for land requisition was not fulfilled. The People’s Governments of province, autonomous regions and municipalities directly under the Central Government, according to the principle ---- which states that the compensation fee for land requisition is used mainly for the affected farmers, shall work out the assignment methods of

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compensation fee for land requisition inside the rural collective economic organization. The rural collective economic organizations shall publicize the expenses and receipts, assignment of compensation fee for land requisition to its members and take its members’ supervision. 5. Selected Provisions from the Directive about Perfecting the System of Compensation Resettlement for Land Requisition (4). Assignment of land compensation fee: The land compensation fee shall be reasonably assigned, according to the principle ---- which states that the compensation fee for land requisition is used mainly for the affected farmers, inside the rural collective economic organization. The detailed assignment methods shall be work out by provincial People’s Government. The land compensation fee for rural collectivity ---- whose land is totally requisitioned and whose economic organization is disbanded at the same time, shall fully used for the production and living resettlement of the affected farmers by land requisition. (5). Resettlement of agricultural production: For the requisition of collectively-owned land outside the urban planning area, these kinds of land, such as rural collective non-planed land, contracted land handed back by contracting farmers, land for contracting transfer and land newly-added during land development and arrangement shall be used firstly as the necessary cultivated land for the affected farmers by land requisition in order to ensure their continuous agricultural productions. (6). Resettlement by new employment: The land requisition unit or the local People’s Government shall try its best to provide the affected farmers with free labor skill training and arrange them with proper jobs. Under the same conditions, the land requisition unit shall employ the affected farmers first. During the requisition of collectively-owned land in the urban planning area, the local People’s Government shall list the farmers who will lose cultivated land because of land requisition, into urban employment system, and set up system of social security. (9). Information of land requisition: Before reporting for approval, the local department of land and resources shall in written form inform the farmers and rural collective economic organization affected by land requisition, about the use, position, compensation standards, resettlement ways of land to be requisitioned. All the attachments or young crops ----which are newly planted or built after informing by the farmers or rural collective economic organization affected by land requisition, shall not be compensated in requisition. (10). Confirming of land requisition investigation results: The local department of land and resources shall investigate the ownership, kind, area of the land to be requisitioned and the ownership, kind, area of land attachments. And the investigation results shall be confirmed together with the farmers and rural collective economic organization affected by land requisition, and the property owner of land attachments.

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(11). Organizing of evidentiary hearing for land requisition: Before reporting for approval, the local department of land and resources shall inform the farmers and rural collective economic organization affected by land requisition that they have the rights to apply evidentiary hearing of the compensation standard of the land to be requisitioned and resettlement approach. If there is party applying for evidentiary hearing, the evidentiary hearing shall be organized according to relevant procedures and requirements of the Provisions for Evidentiary Hearing of Land Resources. (12). Publicizing of approval items for land requisition: For the land legally approved for requisition, the ministry of land and resources and its provincial department shall publicize the approval items by media, expect for the special cases referring to state secrets. The county (city) land and resources department shall publicize, according to the provisions of the proclaiming methods for land requisition, the approval items in the village or group affected by land requisition. (13). Payment of compensation resettlement fee for land requisition: After the compensation resettlement plan is approved by city/county people’s government, the compensation resettlement fee shall be paid for the rural collective economic organization within the legally stated period. 4.1.2.2 Laws and Regulations of Hunan Province 1. Methods of Hunan Province for Implementing the Land Administration Law of the PRC Article 10: Where there are no conditions for reclamation or the reclaimed land does not conform to the requirements, the cultivated land reclamation fee should be paid to the land administration department of provincial People’s Government as the following standards when applying for turning agricultural land into other use. After approval for acquisition of the basal farmland, the reclamation fee shall be 10-12 times of the average annual yield within the three years prior to acquisition. Among which of acquisition the vegetable land, the reclamation fee shall be 10-12 times of the average annual yield of adjacent paddy field within the three years prior to acquisition. After approval for acquisition of the other cultivated land except for the basal farmland, the reclamation fee shall be 6-10 times of the average annual yield within the three years prior to acquisition. The construction unit should list the cultivated land reclamation fee as construction cost into the general investment of the construction project. The land administration department of provincial People’s Government should save the cultivated land reclamation fee with special account according to the regulations of provincial People’s Government, organize reclamation as the planning and allocate enough reclamation fee to the unit that is responsible for the reclamation of cultivated land. Article 18: Land compensation fee for the acquired land shall be paid in accordance with following standards.

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(1) The compensation fee for cultivated land (including paddy field, dry farmland and vegetable land), fishpond and lotus pond, shall be 6-10 times of the average annual yield of the land in the 3 years prior to acquisition. (2) The compensation fee for fruit garden, tea garden and economic forestland, shall be 50%-100% of the compensation standard of the adjacent paddy field, and the compensation fee for other forestland shall be 30%-50% of the compensation standard of the adjacent paddy field. (3) The compensation fee for grazing land shall be 30% of the compensation standard of the adjacent paddy field. (4) The compensation fee for the land used for public facilities or public enterprise of township /town /village and the rural housing plot of villagers, shall be equal to the compensation standard of the adjacent paddy field. (5) The compensation fee for fields on the hill, wasteland and other unused land, shall be 20% of the compensation standard of the adjacent paddy field. Article 19: Resettlement subsidies for the acquisition land shall be paid in accordance with the Article 47 of the Land Administration Law. Resettlement subsidies for the acquisition of fishpond, lotus pond, fruit garden, tea garden and economic forest land shall be paid in accordance with the regulations for requisition of cultivated land. Resettlement subsidies for other forestland and grazing land shall be paid in accordance with 50% of the standard of the adjacent paddy field. For the requisition of the land used for public facilities or public enterprise of township/town/village, the housing plot of villagers, and the land used for water conservancy, such as pond, channel, and dam, if it is necessary to rebuild, the resettlement subsidies shall be paid in accordance with the standards of reconstruction land; if unnecessary, the resettlement subsidies shall be paid appropriately. Resettlement subsidies shall not be paid for the requisition of barren hill or wasteland. Article 20: The compensation fee for the ground appendixes and young crops on the requisition land shall be paid in accordance with the following regulations. (1) The compensation for the young crops whose growing period is under 1 year, shall be paid according to the output value of one season, for the young crops whose growing period is over 1 year shall be paid according to the output value of 1 year. The compensation fee for the young crops shall also be paid with the actual loss according to the growing period. (2) The compensation for the forest trees that can be transplanted shall be paid transplanting fee together with actual loss. The forest trees that can’t be transplanted shall be evaluated and purchased, and the compensation for the forest trees that are lopped by the owner shall be paid with the actual loss.

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(3) Houses as well as other building and structures on the requisitioned land can be removed as compensation or purchased with equivalent price, or be compensated with equivalent houses, other buildings and structures. Article 32: One household of villagers in a rural area can only possess one housing plot, the area of which shall conform to the overall planning for land using of township/town. The cultivated land area of every household shall not exceed 130m2, the waste hill & land area shall not exceed 210 m2, and the other land area shall not exceed 180 m2. 2. Methods of Hunan Province for Implementing Urban Houses Demolition Administration Regulations (2002) Article 7: For rights, area, structure, use, etc of the removed house, it shall take the house ownership certificate as standards. For the item that is not given clear indication on the ownership certificate, it shall take the record of property right or other effective documents as standards. For the item that has been changed to other use, it shall take the approval documents by planning administration department and other relevant departments. Article 16: In the case of exchanging the property rights of removed houses, it is necessary for the relocater to provide resettlement houses that have legal procedure and accord with the quality & safety standards of the State and achieve resettlement only one time. For the transitional resettlement due to special conditions, it is necessary to arrange revolving houses according to Article 20 of this Methods after the agreement with resettlers and houses demolition administration department. During the transition period, the design of replacement houses can be changed when relocater reaches an agreement with resettlers. Article 17: The resettlers or the tenant of public house who possesses too small house area (calculated including his other houses in same urban planning area) and is treated with the lowest living protection shall be arranged with replacement housing to ensure the lowest living level. Article 18: In the case of exchanging the property rights of removed houses, the relocater should transact registration procedure of houses’ property rights for the resettlers in time. The departments and units for control of household, education, and medical treatment, should transact relevant procedures for the resettlers in time, such as household transferring, school transferring and medical treatment, in accordance with the resettlement certificate of house demolition that provided by resettlers. Article 19: For the demolition of houses for production and management, the relocater should pay the demolition subsidies for the resettlers or the tenant. For the equipment that can’t be removed or renewed to use, the relocater should pay relevant compensation. The amount of compensation fee and subsidies for demolition shall be confirmed in accordance with the actual expense for teardown,

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conveyance and installation of the production equipment or with the actual value of the disused production equipment. For the demolition of domicile, the relocater should pay the demolition subsidies for the resettlers or the tenant. In the case of resettlement of only one time, the relocater shall pay the demolition subsidies in one time; in the case of transitional resettlement, the relocater shall pay the demolition subsidies according to the demolition times, and the demolition subsidies shall be confirmed according to the actual requirement. In the case of that the relocater takes charge of demolition, the relocater shall not pay the demolition subsidies. Article 20: During the period of transitional resettlement, the relocater should pay the temporary resettlement subsidies for the resettlers or the tenant that arranges revolving for himself/herself. The amount of the temporary resettlement subsidies shall be confirmed in accordance with the rent for using the similar house with the removed house. For the resettlers or the tenant that can’t arrange house for himself/herself, the relocater should arrange revolving house with the similar area to the removed house, but it is unnecessary for the relocater to pay the temporary resettlement subsidies. 3. Methods for Implementing Cultivated Land Acquisition Tax of Hunan Province (Amendment) Article 2: In the case of acquisition of the following land owned by the State and the collectivity for house building or non-agricultural construction, the unit or individual that acquires land should pay cultivated land acquisition tax in accordance with this Methods. (1)The paddy field and the dry farmland for planting crops, including cultivated land, newly cultivated land, rotation land and the land that had been used for planting crops in the 3 years prior to acquisition. (2)The land that is used mainly for planting crops and accidently for planting mulberry, tea tree, fruit tree and other forest trees, and the shoaly land that is used through reclaiming around. (3)Fishpond, lotus pond, vegetable land, garden plot (including seed plot, flower plot, drug plot, tea garden, fruit garden, mulberry garden and garden for planting other economic forest trees). Article 3: The amount of cultivated land acquisition tax shall be calculated in accordance with the actual acquisition area of above land by the taxpayer and specified amount standard of acquisition tax, and shall be assessed upon in only one time. Article 4: It shall take the average occupancy per head of cultivated land as its main bases of the amount standard of cultivated land acquisition tax, and the amount standard shall be determined according to the natural conditions and the economic development of each area. With the unit of county (including county-level city, same hereinafter), the average occupancy per head of cultivated

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land shall be calculated in accordance with the gross of population and cultivated land that are counted by local statistical department. The specific amount standards of acquisition tax are regulated as follows. (1)Take the county as the unit (same hereinafter). For the area where the average occupancy per head of cultivated land is under 0.5mu (including 0.5mu), the amount standard of acquisition tax is 6-10 yuan/m2. (2) For the area where the average occupancy per head of cultivated land is 0.5-1.0mu (including 1.0 mu), the amount standard of acquisition tax is 4-8 yuan/m2. (3) For the area where the average occupancy per head of cultivated land is over 1.0mu, the amount standard of acquisition tax is 3-7 yuan/m2. (4) For the acquisition of special vegetable land and fishpond for house building or other non-agricultural construction, the amount standard of acquisition tax is 10 yuan/m2. 4. The Notice by Hunan Provincial Commodity Price Bureau and Finance Department about Reissuing Administration Institutional Charging Items and Standards of Hunan Province National Land Resource System The degree area of Sangzhi County is the third class. The detailed standards for reclamation fee of cultivated land are listed as follows. 1) Paddy field: 10000 yuan/mu; 2) Dry farmland: 6000 yuan/mu 4.2 Relevant Articles of the ADB 4.2.1 Policy Bases (1) Involuntary Resettlement Policy of the ADB (issued in November, 1995) and Resettlement Manual of the ADB ---Feasible Practice Direction (issued in 1998) (2) Policy about national minorities of the ADB (3) Policy about poor supporting of the ADB 4.2.2 Relevant Policies and Regulations The Resettlement Policy of the ADB includes the principles as follows. (1) Involuntary resettlement should be avoided where feasible. (2) Where population displacement is unavoidable, it should be minimized by exploring all viable project options. (3) People unavoidably displaced should be compensated and assisted, so that their economic and social future would be generally as favorable as it would have been in the absence of the project. (4) People affected should be informed fully and consulted on resettlement and compensation options.

63 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

(5) Existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible, and resettlers should be integrated economically and socially into host communities. (6) The absence of a formal legal title to land by some affected groups should not be a bar to compensation; particular attention should be paid to households headed by women and other vulnerable groups, and appropriate assistance should be provided to help them improve their status. (7) As far as possible, involuntary resettlement should be conceived and executed as a part of the project. (8) ADB policy requirements pay special emphasis on extreme poor families, women headed families, and other vulnerable social groups. These vulnerable groups should be provided special assistance so that their current status could be improved. 4.3 Compensation Standards for Project 4.3.1 Compensation Qualification All the owners and users of the buildings and land in the area of project land acquisition demolition shall get reasonable compensation or help. Municipal Demolition office will issues Houses Demolition Proclamation and publicizes the relocaters, relocated areas and demolition time limit, etc. within 3 days after issuing Houses Demolition and Relocation License; and notifies the relative departments in written form to stop processing the following procedures within the relocated areas in relocation time limit. (1) Release the procedures of business license using demolished house as business place. (2) The procedures of trade, exchange, division, donation, transfer and mortgage, etc. of the demolished house, excepting the effective judgements and procedures executed for adjudication issued by People’s Court or arbitration institutions. (3) Examination and approval procedures of new-building, expansion, rebuilding and character changing of houses or auxiliaries. In this project, the cut-off date regulated by the government is considered as the date of finally determining that it is in accordance with the compensation conditions. People affected by the project include those who will lose land and house because of the project construction. The compensation or rehabilitation will be processed according to their loss type and quantity, and whether the loss is within the final construction drawing finished within the time limit regulated by the government; or will be treated as being temporarily affected in the construction period. After the cut-off date, the cultivated land, built houses or resettlement of the affected people in the project affected area will not meet the compensation or subsidy conditions.

64 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

4.3.2 Principles of Compensation Rehabilitation 1) The RAP should be based on the social and economic survey and the statistics of the physical indices surveyed in the affected project area. It should also conform to the current national and local land acquisition laws and policies and policy of involuntary resettlement established by ADB. During the implementation of the RAP, once the detailed methods of Hunan Province regarding the Decision by the State Council about Deepening Reformation and Strictly Enforcing Land Administration (GF [2004] NO.28) are issued, this project should make necessary adjustment according to the requirements of the relevant policies. 2) The engineering design should be optimized in order to protect the land and minimize the impact by the land acquisition and resettlement. To minimize the number of involuntary relocatees, the project should avoid the areas with high population density and multi-storied buildings as much as possible. Better construction methods and other measures should be taken to reduce the disturbance to people. 3) All the compensations and resettlements for the involuntary relocatees should be a part of the project. In order to benefit the relocatee, sufficient funds should be available to them. 4) It should be ensured that all the affected persons’ loss caused by the project would be compensated before the remove. Reasonable resettlement and effective rehabilitation should be conducted and provide assistance for their temporary difficulties during transfer. 5) It should be ensure that, after the resettlement, the living conditions, productivity and income level of all affected persons could come back to or exceed the level without the project. 6) There is no deduction for depreciation or any kind of discount for house and other asset compensation, which should be based on replacement values. Compensation can be made in cash or in kinds (such as exchange of property rights). No matter by what means, the compensation should be enough to buy a house with similar structure and condition of the same size in the same area. The project sponsor has the responsibility to recommend affordable houses to the relocatees, and help them deal with the transactions (including some preferential benefits). 7) All the persons and buildings that are negatively affected by the project should be compensated. The compensation and help should not be canceled because of the incompleteness of residence register, lease and operation register. 8) No compensation or relocation could be given to the people who enters the project area and occupies any land or house beyond the deadline as stipulated. Anyone who refuses to sign the compensation for relocation contract or refuses to remove after the contract was signed will be treated according to relevant judicial programs or laws. 9) Relocatees’ loss will be compensated during the moving and transfer process. The recommended

65 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

host area should be provided with elementary basic infrastructure and service facilities. 10) Non-residential units’ loss caused by remove and suspension of business will be compensated. Reconstruction within the affected areas and relocation in outside area should conform to the planning requirements, as well as the second- remove should be avoided in coming days. 11) Vulnerable group should be treated reasonably. The project sponsor should help them with choosing and moving their houses. 12) The owners of the infrastructure should be compensated. The compensation should be used for the reconstruction of affected infrastructure and rehabilitation of the function. 13) Land acquisition and the loss caused by land acquisition should be compensated reasonably. Compensation for land acquisition will be paid to the collective organization to develop the collective economy, improve the public facilities and provide rehabilitation to affected villagers. The resettlement subsidies will be paid to the resettlement sponsors or the resettled individuals to pay the insurance fee. 14) All the fees for land acquisition should be paid within three months after the compensation and resettlement program get approved. It should also be no later than the day the land is put into construction use. 15) Generally, the temporarily land acquisition should not be longer than two years. The user should restore the conditions of the occupied cultivated land within one year after its occupation. When the collective land is occupied, a temporary land acquisition contract should be signed between the temporary land occupier and the collective economic organization or the residential committee and compensation for temporary land acquisition should be paid. The temporary land acquisition compensation should cover the loss to the former owner and user of the land (including the agriculture taxes). The standard of compensation should be increased and the former user of the land should be resettled appropriately if the use purpose or property right of the land changes when it was returned. If the temporarily land acquisition exceeds two years, the acquisition procedure should be handled again. 16) In order to insure the living standards and income levels will not decrease, all the labor forces affected by the land acquisition and resettlement should be provided with employment opportunity. Rehabilitation by allocating replacement land is encouraged, supplemented by development of second and tertiary industries. The villagers can choose to find a job by oneself. If the villages want to be the urban household, the former collective economic organization should help with paying required insurances for the relocatee. 17) Encourage the relocatee to participate in the preparation of resettlement planning and the process of resettlement; let the relocatee know the compensation and resettlement policies and standards.

66 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

It should widely collect opinions of the affected persons during survey, and incorporate them in the RP report. 18) Seriously consider the complaints made by the affected person and help them with their difficulties and inconvenience in land acquisition and relocation reasonably and practically. The problems or dissatisfactions with the compensation standards should be resolved mainly through negotiation. If negotiation does not work, arbitration even a country appeal could be carried out. Any compulsive actions by the resettlement sponsor should conform to relevant laws. 19) Relative organizations should cooperate together to intensify the resettlement organizations at all levels and train all the staff that will go to their duties. 20) In the process of the project, the county PMO is responsible for monitoring the interior implement of the project, hiring an independent organization to do the exterior monitoring and submitting the monitoring report to ADB periodically. Resettlement Assessment will be carried out after the project. 21) Any important changes made in the implement of resettlement (such as decreasing the compensation standards, changing the location or scale of the land acquisition for the project, new sub-project, changing any sub-project into a domestic invested one) should be reported to ADB in advance. If necessary, the resettlement planning can be revised or other resettlement can be prepared. 22) If other non-ADB project demolition occurs ahead or simultaneously in the ADB project area, the ADB project can take the advantage of other project under the condition that all the compensation and resettlement standards accord to the resettlement planning.

4.3.3 Compensation Reference and Standard for Land Acquisition 4.3.3.1 Permanent Land Acquisition of Project z Collectively Owned Land 1) Compensation Standard for Cultivated Land Acquisition Analysis on Output Value of Cultivated Land Price of grains and oils: The prices of main agricultural products are determined by analyzing the market price provided by Sangzhi County. Output value of cultivated land per mu: According to field survey and statistic materials in Sangzhi County, the crops planted on the paddy fields in the project area are mainly the double cropping rice and a small quantity of quarter semilate rice, wheat, rape, vegetable; the crops planted on the dry farmlands are mainly the corn and other grains, bean, pea, sweet potato, Irish potato, earthnut,

67 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

rape, vegetable, and melon and fruit, etc. According to statistical annals, average out put value of cultivated land per mu of every village in the project area from 2001 to 2003 was calculated. Output value of cultivated land per mu: The output value of main product was calculated on basis of the price of grains and oils, yield of cultivated land per mu, as well as average sown area of various crops on the cultivated land per mu; output value of sideline product was determined by proportion of output value of main product according to the analysis on relevant material. Through calculation, annual output value of paddy field per mu is 880.29 yuan, whereas annual output value of dry farmland per mu is 616.32 yuan. For details, see Table 4.3-1. Multiple of Land Compensation and Resettlement Subsidy According to the relevant regulations from Methods of Hunan Province for Implementing the Land Administration Law of the People’s Republic of China, land compensation for the acquired cultivated land is set at 6 times of the average annual output value of the land per mu in the previous 3 years before land acquisition, and resettlement subsidy for each persons requiring economic rehabilitation is 4 times of the output value per mu. Taking the villagers’ groups affected by land acquisition and relocation in 2004 as the statistical unit, it is calculated that the per capita cultivated land owned by agricultural population in the project area is 0.71 mu, which converts into the compensation resettlement subsidy multiple of cultivated land per mu is 11.63. The young crops of less than one year growth period is compensated for according to output value of a quarter; and the cost of young crops is calculated as 50 percent of the annual output value according to farming system of the cultivated land in the project area. Unit Price of Compensation According to annual output value of the cultivated land per mu in the project area as well as compensation multiple, the unit price of compensation is calculated as 10678 yuan for paddy field per mu, and 7474 yuan for dry farmland per mu. Whereas market vegetable plot is set as 15678 yuan per mu according to compensation standard for paddy field plus construction fund for new land with the price of 5000 yuan per mu. 2) Compensation Standard for Flood Land Acquisition The unit price of compensation for flood land acquisition in this project is set at 4485 yuan per mu according to the 60 percent of compensation standard for dry farmland.

68 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources The Calculation Table of Output of Cultivated Land per mu in Urban Flood Control Project Area of Sangzhi County Table 4.3.3-1 Paddy field Dry farmland Item Early rice Semilate riceLate riceWheat Rape Vegetable Corn Other grainSoybean Bean Broad bean PeaSweet potatoIrish potatoEarthnutRapeVegetableMelon fruit Output (kg) 324 512.3 475.4 95.2 97.60 1768 327.5 137.4 122.9 484 92.3 97.60 1568 1453 Main product Unit price (Yuan/kg) 1.18 1.25 1.3 1.5 2.4 0.5 1.18 1 2.4 0.4 1.3 2.4 2.4 0.7 0.4 Output Value (Yuan) 382.32 640.38 618.02 142.8 234.24 884 386.45 137.4 295.1 0 0 193.6 0 221.52 234.2 1098 581.2 Sideline product Output Value (Yuan) 23.33 36.89 34.23 11.42 12.2 33.41 14.01 11.8 0 0 14.52 0 9.41 12.2 43.59 2001 Output Value Subtotal (Yuan) 405.65 677.27 652.25 154.2 246.44 884 419.86 151.41 306.9 0 0 208.12 0 230.93 246.4 1098 624.8 Crop Sowing Proportion (percent) 0.16 0.84 0.16 0.04 0.03 0.06 0.37 0.08 0.18 0.25 0.08 0.24 0.08 0.212 0.086 Crop Output Value per mu (Yuan) 64.9 568.91 104.36 6.17 7.39 49.98 155.35 12.11 55.23 0 0 52.03 0 55.42 19.72 232.5 53.6 Output Value per mu (Yuan) 801.71 635.93 Yield (kg) 336 495.3 501.2 94.1 114.3 1402 296.8 140.4 122.9 54 515 101.2 100.1 1324 1278 Main product Unit price (Yuan/kg) 1.26 1.32 1.4 1.4 2.7 0.6 1.18 1 2.2 2.1 0.4 1.3 2.5 2.7 0.6 0.5 Output Value (Yuan) 423.36 653.8 701.68 131.7 308.61 841.2 350.22 140.4 270.5 113.4 0 206 0 253 270.3 794.4 639 Sideline product Output Value (Yuan) 24.19 35.66 36.09 6.78 15.43 30.27 14.32 11.8 5.51 0 15.45 0 10.32 13.51 38.34 2002 Output Value Subtotal (Yuan) 447.55 689.46 737.77 138.5 324.04 841.2 380.49 154.72 282.3 118.9 0 221.45 0 263.32 283.8 794.4 677.3 Crop Sowing Proportion (percent) 0.17 0.83 0.17 0.04 0.03 0.07 0.27 0.1 0.09 0.005 0.23 0.08 0.08 0.19 0.37 0.07 Crop Output Value per mu (Yuan) 76.08 572.25 125.42 5.54 9.72 58.88 102.73 15.47 25.4 0.59 0 50.93 0 21.07 53.92 293.9 47.41 Output Value per mu (Yuan) 847.89 611.45 Output (kg) 317 526.7 497.6 97.5 101.50 786 278.6 134.5 120.7 58 54 502 108.7 102.5 1425 1506 Main product Unit price (Yuan/kg) 1.56 1.62 1.68 1.6 2.6 0.7 1.26 1.38 3.2 2.3 2.4 0.6 2 3.4 2.6 0.8 0.648 Output Value (Yuan) 494.52 853.25 835.97 156 263.9 550.2 351.04 185.61 386.2 133.4 129.6 301.2 0 369.58 266.5 1140 975.9 Sideline product Output Value (Yuan) 22.82 37.92 35.83 7.02 13.7 28.42 13.72 11.59 5.92 5.51 15.06 0 11.09 13.84 45.18 2003 Output Value Subtotal (Yuan) 517.34 891.17 871.8 163 277.6 550.2 379.46 199.33 397.8 139.3 135.11 316.26 0 380.67 280.3 1140 1021 Crop Sowing Proportion (percent) 0.15 0.85 0.15 0.04 0.04 0.02 0.01 0.06 0.04 0.01 0.01 0.21 0.08 0.02 0.14 0.33 0.08 Crop Output Value per mu (Yuan) 77.6 757.49 130.77 6.52 10.48 8.42 3.79 11.96 15.91 1.39 1.35 66.41 0 7.61 39.25 372.2 81.69 Output Value per mu (Yuan) 991.28 601.57

Average output value within three years (yuan) 880.29 616.32

69 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources ● State-owned land 1) Compensation Standard for Urban Residence Land The residential land acquisition in this project is mainly housing plots of town dwellers. According to location factor of the demolished houses, and through the consultation among Sangzhi County PMO and affected work units as well as its department in charge, the compensation for land occupation of all the urban residential houses is paid as 62 yuan/m2. Based on this calculation, the unit price of compensation for urban residence land acquisition in this project is set at 41354 yuan per mu. Considering that the compensation for urban residence land is listed into compensation standard for urban residential houses, the budgetary estimate of land compensation fee in this project is free from statistics. 2) Other land acquisition According to the relevant regulations of Land Administration Law of the People’s Republic of China and its Implementation Regulations, for acquiring the right of using the land for nation-supported key infrastructure such as energy, transportation and water conservancy infrastructure, the right of using such lands can be obtained through allocation with the approval of People’s Governments at above county level. The other land acquisitions in this project are mainly urban unused land and unused clearing. The mode of the volunteer transfer is adopted to them. For details of standard for permanent land acquisition in this project, see Table 4.3-2. Sangzhi County Compensation Standards for Permanent Land Acquisition in Urban Flood Control Project

Table 4.3-2 New vegetable Land Young crop Compensation Land Resettlement plot Land type compensation compensation Standard Ownership subsidy construction fee fee (yuan/mu) fund Paddy field 5280 4958 440 10678 Dry 3696 3470 308 7474 farmland Collectively Market owned land vegetable 5280 4958 440 5000 15678 plot Flood land 4485 Residence 41354 State-owned land land Other land Volunteer

acquisition transfer

70 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources 4.3.3.2 Temporary Land Acquisition in the Project Compensation fee for temporary land acquisition in this project includes the cost of young crops, compensation fee for land loss and the reclamation cost. Compensation fee for land loss is mainly used for compensating total amount of output or income of landowner of the original land, whereas the reclaiming expense is mainly used for reclaiming temporary land after return. Compensation fee for land loss is determined by the annual output value and occupation time of the land, whereas the reclamation cost is determined according to the actual expense of reclaiming. 1) Unit price of compensation for temporary land acquisition According to materials provided by design organization, temporary sites for construction in this project are mainly the borrow pits, which contain woodland on the slope and hillock (including timber forest land and shrub land) as well as a small quantity of dry farmlands, with the temporary land occupation time of 2 years. The annual output value of dry farmland is 616 yuan per mu, and the output value of young crops is 247 yuan as the 40 percent of the annual output value. The average annual output value of shrub land is 264 yuan per mu as the 30 percent of the vicinal paddy field, and the compensation fee for forest is 264 yuan according to the annual output value of shrub land. Based on these calculations, the unit price of compensation for temporary land acquisition is, respectively, 1478 yuan for dry farmland per mu, and 792 yuan for shrub land per mu. 2) The Expense of Reclaiming Temporary Land Acquisition According to Temporary Land Rehabilitation Plan in the project, both the engineering measures and plant measures of restoring the temporary sites for construction were included in the soil and water conservation design. Only the reclamation of the temporarily occupied dry farmland is planned in this time, and the reclaiming area is 12.74 mu. Through analysis on the works quantities and the unit price of reclaiming per mu cultivated land for the borrow pit, the expense of reclaiming cultivated land is calculated as 3439 yuan per mu. For details of analysis on the unit price of reclaiming cultivated land per mu, see Table 4.3-3. Analysis Table of the Unit Price of Reclaiming Cultivated Land per mu Table 4.3-3 Investment Item Unit Unit price (yuan) Quantity Remarks (yuan) Total 3439 1. Earthwork 3089 1.1Clay cover m3 6.5 333.5 2168 1.2 Arable layer backfilling m3 2.95 200.1 590 1.3 Arable layer leveling m2 0.75 333.5 250 1.4 Laying field ridge m3 6.21 13 81

71 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources Analysis Table of the Unit Price of Reclaiming Cultivated Land per mu Table 4.3-3 Investment Item Unit Unit price (yuan) Quantity Remarks (yuan) 2. Soil maturizaition 250 2.1 Farm fertilizer Dan 1 50 50 2.2 Phosphorus fertilizer kg 0.7 150 105 2.3 Carbamide kg 1.3 50 65 2.4 Potash Fertilizer kg 1 30 30 3. Field Matching Facilities Mu 100 1 100

Details of standards for temporary land acquisition in this project, see Table 4.3-4.

Sangzhi County Compensation Standard for Temporary Land Acquisition in Urban Flood Control Project

Table 4.3-4 Average Land Loss Expense (yuan/mu) Young Crop Reclamation Annual Output Total No. Land Type Acquisition Cost Cost Value Standard (yuan/mu) Time (year) (yuan/mu) (yuan/mu) (yuan/mu) 1 Dry farmland 616 2 1232 247 3439 4918 2 Shrub land 264 2 528 264 792

4.3.4 Demolition Compensation Reference and Standard for Residential House and Auxiliaries 1) Residential house The dwellers’ residential houses in the project area are of mostly brick concrete structure, brick wood, and wood structures. In order to develop the reasonably compensation standards to make relocated household acquire the compensation equal to the replacement value, we investigated and analyzed the resettlement prices of brick concrete buildings and brick wood houses in the project-affected area along with investigation on physical indices. The material consumption of house construction is determined according to the relevant quota from Quota Manual of Architecture and Construction. Based on budgetary price of building materials in the third quarter of 2004 in Sangzhi County, the price of materials is determined through analysis: the replacement value of urban residential brick concrete house is 322.48 yuan per square meter, plus 62 yuan per square meter for land-value factors, the final unit price of compensation is 384 yuan per square meter; the replacement value of brick wood house is 252.12 yuan per square meter, plus the above-mentioned 62 yuan/m2 for land-value factors, the final unit price of compensation is 314 yuan per square meter. In view of the different rate of decoration and building materials of residential houses in the project

72 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources area, compensation standard for residential houses of various types of structures in this project can fluctuate within the range of ten percent or so. For details, see Table 4.3-5. For details of the replacement value of residential houses of various types of structures, see Table 4.3-6. Table 4.3-5 Sangzhi County Compensation Standards for the Demolition Residential House in Urban Flood Control Project

Housing Type Structure Unit Standard Remarks Brick concrete Yuan/m2 384 Fluctuant Amplitude 340~420 Urban House Brick wood Yuan/m2 314 Fluctuant Amplitude 270~330 Simple structure Yuan/m2 80

Table 4.3-6 Analysis and Calculation Table of Unit Area Replacement Value of Classified Urban Residential House Structures Brick concrete Brick wood Unit price Item Unit Amount Amount Remarks (yuan) Quantity Quantity (yuan) (yuan) 1. Direct Cost 272.93 213.38 1) Basic Direct Cost 267.58 209.2 Cost of Materials 187.22 147.46 Rolled Steels kg 3.2 14.7 47.04 4.8 15.36 Small Grey Tile Piece 0.105 180 18.9 Cement kg 0.24 90 21.6 50.3 12.07 Timber m3 380 0.08 30.4 0.105 39.9 Cast Iron Pipe kg 5 2.2 11 Asphalt felt m2 0.8 0.85 0.68 Asphalt kg 1 1 1 Glass m2 15 0.15 2.25 0.15 2.25 Brick Piece 0.11 240 26.4 218 23.98 Lime kg 0.2 45 9 68 13.6 Sand m3 35 0.35 12.25 0.23 8.05 Macadam m3 40 0.3 12 0.05 2 Nail kg 6 0.5 3 0.5 3 Other Materials 6.00% 10.6 8.35 Labor Cost Labor day 19.6 4.1 80.36 3.15 61.74 2 percent of Basic Direct 2) Other Direct Cost 2.00% 5.35 4.18 Cost 2. Indirect Cost 7.00% 19.11 14.94 7 percent of Direct Cost 3. Construction Profit 7.00% 20.44 15.98 7 percent of Item 1-2 4. Tax 3.41% 10 7.82 3.41 percent of Item 1-3 5. New cost m2 322.48 252.12 6. Land-value m2 62 1 62 1 62 7. Total cost m2 384.48 314.12 Round-off Value Yuan 384 314

73 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources 2) Accessorial facilities Compensation for accessorial facilities in this project is determined with reference to similar projects in the province and the current unit price of building materials in Sangzhi County. For details, see Table 4.3-7. Compensation Standards for Accessorial Facilities of Residential House in Urban Flood Control Project of Sangzhi County

Table 4.3-7 No. Item Unit Standard Remarks 1 Wall Yuan/m2 18 2 Cement sunny ground Yuan/m2 15 3 Cement pond Yuan/m3 80 4 Air-conditioner reassembling Yuan/piece 200 5 Phone reassembling Yuan/piece 200 6 CATV reassembling Yuan/household 150

3) Compensation for infrastructure Compensation for infrastructure mainly includes investment in resettlement housing plots, including leveling, and facilities construction such as water supply, electricity, and road access. According to resettlement plan, rural relocation households will mainly resettled dispersedly within their own village groups with better conditions of landform, road access, electricity, and water supply. The urban dwellers will be resettled in one location at Tongbao Development Zone. The current infrastructure in the resettlement site is well-developed. For all the resettlers in the new resettlement site, they can use the existing water supply, power grid, road access and other infrastructure. According to landform of resettlement site in this project area and with reference to other similar projects of this province, the project compensation fee for infrastructure such as site leveling, drinking facilities and lighting facilities is set at 1500 yuan per capita. 4) Moving and Transfer Allowance For resettlers affected by land acquisition relocation, although most of them will be relocated not far away in the local region, it is inconvenient for rebuilding new houses in such a relative tight schedule, thus the moving and transfer allowance will include moving charge, living allowance, temporary housing allowance, second moving charge, and so on. The transfer period is set at three months. a) Moving expense includes cost of vehicles, material transport cost, and material damage expense. Compensation fee is set at 100 yuan per person; b) Living allowance includes meal and lodging expenses during moving, medical care during

74 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources moving, and loss working time because of moving. Compensation fee is set at 100 yuan per capita; c) Temporary housing allowance refers to resettlers’ temporary housing expenses before their new houses are built. A large majority of the resettlers belong to non-rural population. They will have to rent the temporary residential houses, and the temporary housing allowance is per capita 300 yuan; d) Second moving charge mainly refers to the cost of moving from temporary residential houses to replaced new houses. It is set at 100 yuan per person. 4.3.5 Compensation Reference and Standard for Affected Individuals Engaged in Small-scale Business According to investigation, 8 premises needed to be relocated are non-special ones mainly used for private inhabitation, dealing in foodstuff and beverage, and service for motorcycle of making repairs and supplying replacements, etc. According to the relevant regulations from Zhangjiajie City Compensation and Resettlement Methods of Land Acquisition Demolition, demolition of houses both used for private inhabitation and business operation shall be resettled as urban residential houses, and the loss expenses of houses shall be listed into compensation for demolition of urban residential houses. In this project, the moving charge shall include cost of shutdown business because of relocation of individual premises and comprehensive freight during the course of transportation. The statistical work of operating income of individuals engaged in small-scale business is hard to conduct accurately, so with reference to the relevant regulations of Sangzhi County, the loss expense of shutdown of individual shops during the course of the relocation in this project is calculated according to the area of business space. Compensation fee is set at 15 yuan per square meter • month, and shutdown time shall be not more than three months in principle. The comprehensive freight and miscellaneous charges are set as 200 yuan for each unit with reference to other projects of Sangzhi County. 4.3.6 The Compensation Reference and Standard for Affected Enterprises and Institutions 1) Non-residential house Within the project area, if most of the non-residential house needed to be relocated are office buildings and workshops of enterprises and institutions, the compensation standard shall be executed with reference to the standard for urban residential housing relocation. For details, see Table 4.3-8.

Compensation Standard for Non-residential Housing Demolitions in 75 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources Urban Flood Control Project of Sangzhi County Table 4.3-8 Non-residential Structure Unit Standard Remarks housing type Brick concrete Yuan/m2 384 Fluctuant amplitude 340~420 Office buildings, store Brick wood Yuan/m2 314 Fluctuant amplitude 270~330 wares and workshops Simple structure Yuan/m2 80 2) Accessorial facilities Within the project range, the compensation standard for accessorial facilities demolition of non-residential house shall be determined with reference to compensation standard for accessorial facilities demolition of urban residential house. For details, see Table 4.3-9. Compensation Standard for Accessorial Facilities of Non-residential House in Urban Flood Control Project of Sangzhi County

Table 4.3-9 Type Item Unit Standard Remarks Wall Yuan/m2 18 Accessorial facilities Cement sunny ground Yuan/m2 15

3) Compensation for Production Equipment According to the relevant regulations from Methods of Hunan Province for Implementing the Urban Houses Demolition Administration Regulations of PRC, compensation for enterprise production equipment includes compensation for removable equipment and non-removable equipment in this project. The compensation for non-removable equipment will be calculated according to the replacement value of the equipment, and only the cost of disassembly, installation and debugging shall be considered for the removable equipment. According to investigations, no large production equipment will be installed in unit enterprise affected by the project, and most affected equipment can be basically rehabilitated and re-used, therefore, the actual expense is relatively low. Though consultation with the enterprises to be moved, the compensation for production equipment of enterprises needed to be removed in this phase will be paid as 10% of equipment replacement value for the cost of disassembly, installation and debugging. 4) Relocation Allowance The relocation allowance during the course of relocations of enterprises and institutions in this project will be paid 25 yuan per square meter according to the area of demolished non-residential housing space. 5) The Loss Compensation for Stopping Production and Working in Removing Period

76 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources Through consultation among PMO of Sangzhi County, and the units to be removed as well as their departments in charge, in terms of the loss compensation for stopping production and working of affected enterprises and institutions, the urban flood control project shall be implemented with reference to the relevant project in the process of implementation. For details, see Table 4.3-10. The time of stopping production and working shall be not more than 6 months in principle. Allowance Standard for Stopping Production and Working of the Enterprises and Institutions in Urban Flood Control Project of Sangzhi County Table 4.3-10 Non-residential housing type Structure Unit Standard Remarks Brick concrete Yuan/m2·month 6 Office buildings, workshops Brick wood Yuan/m2·month 5

4.3.7 Compensation Reference and Standard for Special Facilities Affected by the Project 1) Transportation Facilities The transportation facilities rehabilitation and rebuilding in the project area will be combined with the project construction implementation. The expenses needed have been listed into the project investment, so it won’t be counted and listed into the investment of resettlement compensation again. 2) Facilities for Power transmission and transformation In order to formulate the compensation standard correctly and reasonably, investigation and analysis on average price per kilometer of 10kV high voltage line and 380V low voltage line in the project area is carried out in details along with investigation on the physical indices. According to the electric engineering budgetary estimate compilation method and the relevant quota, the consumption volume of materials are determined by the unit price analysis and calculation. The prices of materials are determined on the basis of material budget price of the third quarter of 2004 in Sangzhi County. According to the typical analysis on the unit price and similar projects, the unit price of rebuilding compensation for 10kV high voltage line and 380V low voltage line in the project area is determined to be 50 thousand yuan/km and 27.5 thousand yuan/km. For details, see Table 4.3-11 and Table 4.3-12. 3) Post facilities In order to formulate the compensation standard correctly and reasonably, investigation and analysis on average price per kilometer of post line with HYA3-0.5 type cable in the project area is carried out in details along with the investigation on physical indices. According to the communications engineering budgetary estimate compilation method and the relevant quota, the consumption volume of materials are determined by the unit price analysis and calculation. The

77 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources prices of materials are determined on the basis of material budget price of the third quarter of 2004 in Sangzhi County. According to the typical analysis on the unit price and with reference to the similar projects, the unit price of compensation for rebuilding post line of HYA3-0.5 type cable in the project area is determined to be 50 thousand yuan/km. For details, see Table 4.3-13.

78 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources Unit Price Analysis Table of Per-kilometer 10KV Electric Line Table 4.3-11 Unit price (yuan) Amount (yuan) No. Cost name Specification (ratio) Unit Quantity Subtotal Wage Material Machine Subtotal Wage Material Machine Round-off compensation standard 50000 Total 49966 I Material cost 24906 (1) Main material cost 22642 1 Concrete pole YB-15-10 Piece 20 554 11080 2 Wire LGJ-35/6 kg 444 16.5 7326 3 Cross arm 63×6×1500 Set 20 59 1180 4 Needle ceramic bottle PT-15T Set 60 21 1260 5 Single crown bar ZJ1-62×R95 Set 20 41 820 6 Hoop BGR-R100 Set 20 17 340 7 Guy wire GJ-35 kg 11 7.5 83 8 Guy anchor LP-04 Set 4 50 200 9 Pull rod φ15*2500 Piece 4 32 128 10 Guy anchor ring UM22 Piece 4 28 112 11 Material loss % 0.5 113 (2) Supplementary material cost 10% of main material cost 2264 II Installation Cost 25060 (I) Site transportation 6590 4834 56 1700 1 Passenger transportation Average run distance1km tkm 14.12 230 230 3248 3248 0 0 2 Truck material handing t 14.12 47 7 4 36 663 99 56 508 3 Transportation by truck Run distance 50km tkm 706 1.15 0.15 1 812 106 0 706 4 Terrain adjustment and increase 40% of item 1-3 % 40 3453 1214 1867 1381 486 (II) Earthworks 2334 950 1031 353 Pole pit 0.8×0.8×1.9 m3 24.32 86 35 38 13 2091 851 924 316 Guy wire pit 0.4×0.8×2.2 m3 2.82 86 35 38 13 243 99 107 37

79 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources Unit Price Analysis Table of Per-kilometer 10KV Electric Line Table 4.3-11 Unit price (yuan) Amount (yuan) No. Cost name Specification (ratio) Unit Quantity Subtotal Wage Material Machine Subtotal Wage Material Machine (III) Erect the pole and lay the wire 2735 1426 890 419 1 Erect the pole Piece 20 46.2 29.3 2.7 14.2 924 586 54 284 2 Cross arm installation Set 20 9.4 7.2 2.2 188 144 44 0 3 Fabricate the guy wire Set 4 11.6 10 1.6 46 40 6 0 4 Installation of guy anchor Set 4 5 5 20 20 0 0 5 Lay the wire km/Single wire 3 519 212 262 45 1557 636 786 135 (I) to (III) in total 11659 7210 1977 2472 (IV) Basic direct cost % 22 7210 1586 (V) Comprehensive cost % 53.3 7210 3843 (VI) Plan profit % 49.2 7210 3547 (VII) Adjustment of labor cost % 27.27 7210 1966 (VIII) Far place adding cost % 11.48 7210 828 (IX) Tax 3.348% of item (I) - (VIII) % 3.348 23429 784 (X) Labor insurance funds 3.5% of item (I) – (IX) % 3.5 24213 847

80 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources Unit Price Analysis Table of Per-kilometer 380V Electric Line Table 4.3-12 Unit price (yuan) Amount (yuan) No. Cost name Specification Unit Quantity Subtotal Wage Material Machine Subtotal Wage Material Machine Round-off compensation standard 27500 Total 27493 I Material cost 11861 (1) Main material cost 10783 1 Concrete pole YB-15-7 Piece 20 245 4900 2 Wire LGJ-16/3 kg 274 16 4384 3 Four lines cross arm 50×5×1500 Set 20 40 800 4 Butterfly ceramic bottle ED-2 Piece 160 1 160 5 Encircling BGR-R80 Set 20 11 220 6 Guy wire GJ-35 kg 6 7.5 45 7 Guy anchor LP-04 Piece 2 50 100 8 Pull rod φ15*2500 Piece 2 32 64 9 Guy anchor ring UM22 Piece 2 28 56 10 Material loss % 0.5 54 Supplementary material (2) 10% of main material cost 1078 cost II Installation Cost 15632 (I) Site transportation 4009 2940 34 1035 Man-power 1 Average run distance 1km tkm 8.59 230 230 1976 1976 0 0 transportation 2 Truck material handing t 8.59 47 7 4 36 403 60 34 309 3 Truck transportation Run distance 50km tkm 429.5 1.15 0.15 1 494 64 0 430 Terrain adjustment and 4 40% of item 1-3 % 40 2100 739 1136 840 296 increase (II) Earthworks 1045 425 462 158

81 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources Unit Price Analysis Table of Per-kilometer 380V Electric Line Table 4.3-12 Unit price (yuan) Amount (yuan) No. Cost name Specification Unit Quantity Subtotal Wage Material Machine Subtotal Wage Material Machine Pole pit 0.8*0.8*1.5 m3 11.52 86 35 38 13 991 403 438 150 Guy wire pit 0.4*0.8*2 m3 0.64 86 35 38 13 54 22 24 8 Upright stanchion and (III) 2133 1184 525 424 lay wire 1 Upright the cement pole Piece 20 46.2 29.3 2.7 14.2 924 586 54 284 2 Cross arm installation Set 20 9.4 7.2 2.2 188 144 44 0 3 Fabricate the guy wire Set 2 11.6 10 1.6 23 20 3 0 Installation of guy 4 Piece 2 5 5 10 10 0 0 anchor 5 Lay the wire km/Single wire 4 247 106 106 35 988 424 424 140 (1) to (3) in total 7187 4549 1021 1617 (IV) Basic direct cost % 22 4549 1001 (V) Comprehensive cost % 53.3 4549 2425 (VI) Plan profit % 49.2 4549 2238 (VII) Adjustment of labor cost % 27.27 4549 1241 (VIII) Far place adding cost % 11.48 4549 522 (IX) Tax 3.348% of item (I) - (VIII) % 3.348 14614 489 (X) Labor insurance funds 3.5% of item (I) – (IX) % 3.5 15103 529

82 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

Unit Price Analysis Table of Average Per-km. Telecommunication Line Table 4.3-13 Cable HYA3-0.5 No. Cost name Specification (ratio) Unit Unit price Amount Quantity (yuan) (yuan) Round-off compensation standard 50000 Construction installation 49541.4 project cost I Direct project cost 46825.4 (I) Direct cost 44263.4 1 Labor cost 1726 Labor (1) Technical staff cost 70 16.8 1176 day Labor (2) Common labor cost 50 11 550 day 2 Material cost 42537.4 (1) Main material cost 42116.4 Power pole 20 2700 8m Cement pole Piece 0 7m Cement pole Piece 0 6m Cement pole Piece 20 135 2700 Galvanized stranded wire 1403.4 Lifting rope (7/2.2) kg 228 5.65 1288.2 Guy wire (7/3.0) kg 16 7.2 115.2 Transmission line 36900 Optical fiber cable m 0 Electrical cable m 1000 36.9 36900 Coupler 45mm Piece 1420 0.34 483 Anchor tie steel handle Piece 4 26 104 Cement capstan Piece 4 42 168 Fish-plate Set 20 7.65 153 Single-suspended encircling Piece 20 16 320 Outdoor junction box Piece 1 38 38 Junction box tee metal Set 1 15 15 (2) Supplementary material cost 5% of main material cost 421 (II) Other direct cost 1762 1 Instrument working cost 4% of technician staff cost 47 12% of technician staff cost +2% of 2 Production tool working cost 152 common labor cost 3 Project vehicle working cost 13% of technician staff cost 153 Site equipment moving 4 12% of technician staff cost 141 charge 5 Mobile construction subsidy 4.8 yuan/day for technician staff cost 280 6 Project interference cost 10% of labor cost 173 8.8 for technician staff, 4 for common 7 Labor cost price difference 816 staff cost

83 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

Unit Price Analysis Table of Average Per-km. Telecommunication Line Table 4.3-13 Cable HYA3-0.5 No. Cost name Specification (ratio) Unit Unit price Amount Quantity (yuan) (yuan) (III) Site cost 800 22% of technician staff cost+ 10% of 1 Temporary facility cost 314 common labor cost 32% of technician staff cost+ 20% of 2 Site management cost 486 common labor cost II Indirect cost 48% of technician staff cost 564 III Plan profit 30% of labor cost 518 IV Tax 3.41% of item I to item III 1634 4) Water resource facilities The water resource facilities affected by the project are nothing but electric-pump-generated mechanical wharf. With reference to the similar project, compensation standard for electric-pump-generated mechanical wharf is set as 1000 yuan/kw. For details of compensation standard for rebuilding special facilities in this project, see Table 4.3-14. Summary Table of Compensation Standard for Special Facilities in Urban Flood Control Project of Sangzhi County Table 4.3-14 Standard Item Sub-item Unit Remarks (yuan) 1. Transportation facilities Listed into the project Hasty road investment 2. Facilities for power transmission

and transformation 10KV high voltage line km 50000 380V low voltage line km 27500 3. Post facilities Cable HYA3-0.5 for telephone km 50000 line 4. Water source facilities Electric-pump-generated kw 1000 mechanical wharf 4.4 Table of Entitlement Matrix According to the on-spot investigation conducted by PMO and resettlement design unit, main impacts on land acquisition and demolition have been confirmed on the basis of natural loss, and entitlement matrix table can be used as the basis of payment for the compensation. For details, see Table 4.4-1.

84 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources Table 4.4-1 Table of Entitlement Matrix in Urban Flood Control Project of Sangzhi County Affected Responsible Involved in this Compensation standard (yuan/unit) Affected type Policy of Land Acquisition and Resettlement object Agency project or not Compensation item Standard (fluctuant amplitude)

1. The compensation for all the houses shall be paid as the replacement value without deduction of depreciation. Available No materials belong to the resettlers, and they also can use them to build new house. 2. The resettlement organ will assist rural resettlement household to elect new housing plot. And in the resettlement site No compensation for infrastructures such as site leveling, drinking facilities and lighting facilities is set at 1500 yuan per capita. 3. The resettlement plan respects the idea of majority of resettlers. Self-dismantling and self-building mode shall be adopted and No the resettlers can build their house in rural dispersedly, and the resettlers can consider by their own mind whether to use the available materials of old houses. Before the completion of new house, the resettlers can live in their original houses and they shall not be forced to move before the stipulated date. County PMO, Rural 4. Resettlers shall get the notice three months before the construction of new houses, and they shall have at least two to three No County Land residential months to build the house. Discuss the arrangement of house building time fully with the resettlers in village and town, and it Relocatee and house and is better to arrange it in slack season. Moving and transfer allowance will be considered including moving charge, living Resources accessorial allowance, temporary housing allowance and second moving charge. And the transfer period is set at three months. Bureau facilities 5. Effective measures shall be employed by the resettlement institution in the course of implementation to help the vulnerable (the No old, the handicapped, the weak and woman-headed households). The rebuilding subsidy for especially poor family is 3000 yuan per household, and living allowance for the vulnerable family 600 yuan per person. And the Township (Town) Committee and Village Committee shall assist them to build the house and help them move into the new house by consulting them. 6. House compensation cost shall be paid to the resettlers before the construction of new house. If the installment plan is No adopted, the final cost shall be paid to them before the completion of new house. 7. The resettlers can lodge appeal for any aspect of the resettlement, including the compensation standard. No expense is paid No to the organ dealing with resettlers’ appealing.

1. The resettlement plan respects the idea of the majority of relocatees. Cash compensation and property-right-exchange mode Residential house shall be adopted to the affected dwellers, and the demolished houses shall be compensated according to the principle of Yes Brick concrete 384 yuan/m2 (340~420) replacement value. Before the completion of new house, the resettlers can live in their original houses and they shall not be Brick wood 314 yuan/m2 (270~330) forced to move before the stipulated date. Simple structure 800 yuan/m2 2. For the urban residential houses that are compensated according to the mode of cash resettlement in principle, the Yes Wall Accessorial facilities compensation for the section of land is paid as 62 yuan/m2, and compensation standard for the section of construction 18 yuan/m2 complies with the replacement value of houses Cement pond 80 yuan/m3

3. For the construction area of property-right-exchange compensation equal to the original construction area of relocated Cement sunny ground 15 yuan/m2 Yes houses, its relevant account will not be settled as price difference; for the construction area more than the original area, the Phone reassembling 200 yuan/piece

County PMO, additional fund for the extra space will be paid; for the compensation area more than the space within the range of 15% of the Air-conditioner Urban 200 yuan/piece County Land original area, the additional fund will be paid as compensation fee for the original house; for the extra space, the additional reassembling residential fund will multiply the certain coefficient whose maximal value shall be not more than 20% of the prices of the original houses Relocatee and CATV reassembling 150 yuan/household house and Resources according to the storey of new houses. accessorial No Compensation standard for infrastructure Bureau 4. The compensation for all the houses shall be paid as the replacement value without deduction of depreciation. Available facilities materials belong to the resettlers, and they also can use them to build new house. Site leveling, drinking 5. Effective measures shall be employed by the resettlement institution in the course of implementation to help the vulnerable facilities and lighting 1500 yuan/person (the old, the handicapped, the weak and woman-headed households). The rebuilding subsidy for especially poor family is Yes facilities 3000 yuan per household, and living allowance for the vulnerable family 600 yuan per person. And the Township (Town) Demolition subsidy Committee and Village Committee shall assist them to build the house and help them move into the new house by consulting Moving charge 100 yuan/person them. Living allowance 100 yuan/person Temporary housing 6. House compensation cost shall be paid to the resettlers before the construction of new house. If the installment plan is Yes 300 yuan/person adopted, the final cost shall be paid to them before the completion of new house. allowance 7. The resettlers can lodge appeal for any aspect of the resettlement, including the compensation standard. No expense is paid Second moving charge 100 yuan/person to the organ dealing with resettlers’ appealing. Yes

85 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

Table 4.4-1 Table of Entitlement Matrix in Urban Flood Control Project of Sangzhi County Affected Responsible Involved in this Compensation standard (yuan/unit) Affected type Policy of Land Acquisition and Resettlement object Agency project or not Compensation item Standard (fluctuant amplitude) 1. All enterprises and institutions affected by the project are planned to be relocated and rebuilt by themselves, and the PMO shall Yes The unit price of compensation for houses with discuss with the relevant units about the compensation standard as well as relocating and rebuilding time. All the costs needed various kinds of structure shall be calculated by the construction shall be listed into the general budgetary estimate of the project and be paid by the PMO 4 months before according to urban residential houses and the commencement of corresponding project. Labor resettlement during the course of resettlement shall be paid as accessorial facilities. unpredictable costs by the PMO. 2 County Demolition subsidy 25 yuan/m 2. The compensation for all the non-residential houses shall be paid according to the mode of cash resettlement in principle. Yes Enterprises PMO, Loss expense of stopping production and working Among them, the compensation standard for section of construction is executed with reference to replacement value of urban 2 and County Land Brick concrete 6 yuan/m ·month residential houses without deduction of depreciation. Institutions and 3. Moving allowance for enterprises and institutions shall be calculated according to the area of non-residential house needed to be relocated, Yes Resources and it sets at 25 yuan/m2. Bureau 4. Compensation for production equipment of enterprises and institution during the course of relocation will be paid as 10% of equipment Yes 2 replacement value for the cost of disassembly, installation and debugging. Brick wood 5 yuan/m ·month 5. Proper compensation will be paid for loss expenses of stopping production and working to affected enterprises and institutions during the course of Non-residential relocation, including the compensation for the loss of staff’s salary. And time of stopping production and working shall be not more than 6 months in Yes house and principle. accessorial 1. All the affected premises are non-special ones mainly used for private inhabitation. The compensations of houses used for business Yes The unit price of compensation for houses with facilities operation are paid as replacement value of urban residential houses according to the relevant regulations, and no depreciation is deducted. various kinds of structure shall be calculated 2. The resettlement office will assist proprietor to identify the housing plot or property right exchange, it shall be firstly arranged at the cross or Yes according to compensation standard for residential both sides of road where the stream of people is dense. house and its accessorial facilities. County 3. The loss expense of shutdown of affected individuals engaged in small-scale business during the course of relocation and rebuilding the Yes Loss expense of Individuals 15 yuan/m2·month PMO, houses in this project is calculated according to the area of business spaces. Compensation fee is set at 15 yuan per square shutdown engaged in County Land meter • month, and shutdown time shall be not over 3 months in principle. small-scale and 4. For the affected individuals engaged in small-scale business dealing with business operations under lease, they can independently choose Yes business Resources the site for restarting business operation according to their own goods and features of their service. And project executive organ will Comprehensive Bureau provide new information on commercial premises of Sangzhi County to the proprietor. freight and 200 yuan/household 5. The affected individuals engaged in small-scale business must get the notice three months before their building house, and four months is No miscellaneous required for them to build houses. charge 6. Proprietor can appeal in terms of any aspects during the course of implementing resettlement, including compensation standard. No Yes expense is paid to the organ dealing with resettlers’ appealing. County PMO, Scattered Owner of County Land Without impact on In the project compensation fee or replanting cost for the scattered trees shall be paid. No trees title and scattered trees Resources Bureau

86 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

Table 4.4-1 Table of Entitlement Matrix in Urban Flood Control Project of Sangzhi County Affected Affected Responsible Involved in this Compensation standard (yuan/unit) Policy of Land Acquisition and Resettlement type object Agency project or not Compensation item Standard (fluctuant amplitude) 1 The paid transfers of land ownership are adopted to industrial land within project range. Its compensation standard shall be No Considering it into unit price of County PMO, Residential land executed according to the detailed methods of the similar project in Sangzhi County. house Permanent County Land State-owned The mode of cash resettlement is adopted to compensation for urban residential houses in principle. Among them, compensation Yes land and 2 land for the section of land is paid as 62 yuan per square meter. acquisition Resources Other land acquisition Volunteer transfer 3 In the project, for other state-owned land acquisition such as urban unused land or flood land, volunteer transfer is adopted to Yes Bureau obtaining ownership of state-owned land. 1 For the project construction land acquisition, the village to be acquired land shall obtain the land compensation fee and Yes Paddy field 10678 yuan/mu resettlement subsidy paid by the land acquisition unit; and relocatee will obtain the cost of young crops and compensation fee for Dry farmland 7474 yuan/mu ground adhesion an so on; What’s more, If the land adjustment or the land reclamation is carried out inside the villager’s group to Market vegetable plot 15678 yuan/mu make the affected farmers by land acquisition obtain land or other means of production, the following measures should be adopted: the land adjustment by use of the collectively-owned land, the land compensation fee and the resettlement subsidies should be controlled for utilization by the villager’s group collective; for the farmers not affected by the land acquisition but involved in the land adjustment, the resettlement subsidies should be directly paid to them. On the contrary, if there is no possibility to carry out land adjustment or land tidying or development, and the relocatee has not got any production materials, the village group shall pay the resettlement subsidy to them, and the compensation fee shall be managed and used by the village group. 2 Compensation fee for land acquisition and resettlement subsidy shall be used in the livelihood rehabilitation of relocatee in the Yes County PMO, project construction, such as construction of farmland water resource facilities, rebuilding of rural infrastructure and adjustment of Permanent County Land agriculture structure and so on Collectively land and 3 The compensation standard for cultivated land acquisition is calculated according to the average annual output value of the Yes owned land acquisition Resources cultivated land per mu three years before the land acquisition. Compensation fee for cultivated land acquisition and multiple of Bureau resettlement subsidy shall be determined according to the quantity of per capita cultivated land area before the land acquisition in Flood land 4485 yuan/mu project area, and shall comply with the relevant regulations from The Land Administration Law of the People’s Republic of China and Methods of Hunan Province for Implementing the Land Administration Law of the People’s Republic of China. Requisition of garden plot, villagers’ housing plot and other unused land shall be compensated reasonably with reference to the stipulation of cultivated land acquisition. 4 The village collective unit or land contractor shall be paid to the land compensation fee before the land acquisition. Yes 5 Land redistribution shall be carried out in slack season, and all the farmers lost the land because of the project shall obtain the Yes new land again. 6 The exotic workers who rent cultivated land in the project area will obtain the young crops compensation for land acquisition. No During the implementation of the resettlement in the project, if the exotic workers are willing to stay at this locality for earning a living, the project executive agency should help them rent the near land for cultivation. 1 Compensation fee for temporary land acquisition includes the costs of young crop, compensation for land loss and reclamation Yes Dry farmland 4918 cost with 2-year occupation time limit. If the temporarily land acquisition exceeds two years, the acquisition procedure should be County PMO, Timber land 792 handled again. County Land 2 Compensation fee for land loss is mainly used for compensating total amount of output or income of land owner from the original Yes and Temporary Contractor land, and compensation fee shall be determined according to annual output value and occupation time of original land: 1232 yuan Resources for dry farmland per mu, 528 yuan for shrub land per mu; the cost of young crops is as follows: 246 yuan for dry farmland per mu, Bureau, Waste land No compensation 264 yuan for shrub land per mu. Contractor 3 After completion of construction, the land to be occupied shall be rehabilitated and returned to affected village, among which Yes temporary dry farmland acquisition shall be reclaimed and the reclamation cost is set as 3439 yuan per mu. Listed into the project Hasty road investment County PMO, All the special facilities affected by the project shall be relocated and rebuilt according to the actual conditions affected by the project, 10KV high voltage line 50000 yuan/km Special Owner of relative original standard, scale and function. The PMO shall plan the investment according to the rehabilitation plan, and supply proper Yes 380V low voltage line 27500 yuan/km facilities title professional compensation funds for the each department in charge of special facilities to organize the implementation. departments Post line 50000 yuan/km Electric-pump-generated 1000 yuan/kw mechanical wharf 87 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

5. Resettlement and Rehabilitation Measures 5.1 Rehabilitation Strategies 5.1.1 Resettlement and Rehabilitation Objective Make proper compensation and appropriate resettlement in order to insure the productivity, income level and living conditions of the affected people could be restored or improved. 5.1.2 Resettlement and Rehabilitation Tasks According to the investigation, 60 households with 474 people are affected by the project land acquisition, of which 37 households with 176 people should be resettled and 56 agriculture populations should be provided economic rehabilitation. According to the time schedule of the project, the start of the resettlement is in the year 2005, which is close to the investigation basic year, so this project is planned according to the result of the investigation, not need to taking the nature increase of population into account. 5.2 General Scheme of Rehabilitation The construction of Sangzhi County Flood Control Project, Hunan Province only affect few houses and land in the villages (residential committees) along the flood-control dike and has no serious negative effect on the productivity and living conditions in most of the affected villages (residential committees). The opinions of relocatees will be gathered widely by means of participatory planning in the affected townships (Sub-districts) and villages. According to the opinions and suggestions held by the relocatees and the situations in the affected areas, the general scheme of restoration has been established as follows, 1) In order to save the land and conform to the city development planning, affected urban residents (non-agriculture population) are resettled by means of exchanging property rights and concentrated resettlement. 2) In order to maintain the current life style and social relationship, restore their productivity and income level as well as to increase their enthusiasm and adaptabilities, affected rural residents (agriculture population) are settled by means of scattered move-back and resettle within their own villages locally. 3) In view of the production, after obtaining the compensation for young crops and ground attachments, the affected farmers will be resettled within their villager’s groups. Developing the agricultural production will be the main body of the economic rehabilitation, and the main method is the partial cultivated land adjustment in the original group with assistant developing measures of hydro-facilities improving, agricultural crop structure adjustment, low-yield farmland improving and changing the dry farmland to paddy field etc., so as to dig out potential of the

88 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

existing land and ensure the food production capacity of the resettlement people. Of which, for the land adjustment with the collectively-owned land, the land compensation fee and the resettlement subsidies should be controlled and put into utilization by the villager’s group collective; for the farmers not involved in the land acquisition but included in the range of land adjustment, the resettlement subsidies should be directly paid to them. At the same time, by combining the resource situation in project affected area, direct cash compensation will be conducted in some villager’s groups. The land compensation fee should be controlled and put into utilization by the villager’s group collective, and the resettlement subsidies should be directly paid to the farmers affected by the land acquisition. The affected farmers will be engaged in other agricultural activities by use of this compensation (such as adjustment of agricultural planting structure, development of green house vegetable ), or some non-agricultural activities (such as animal breeding), so their production and living standards will be soon rehabilitated. 5.3 Rehabilitation Plan for House Demolition 5.3.1 Choice of Rehabilitation Method From December 2004 to January 2005, the resettlement team carried out the on site investigation, optimization and demonstration with the help of county PMO and local governments. According to the practical situation and the opinions of the relocatees, different resettlement methods have been developed, including cash compensation, rebuilding with existing villages, and rehabilitation through exchanging property rights. A contract should be signed between the relocatee and the project sponsor or the land acquisition implementation agency. The relocatee has the right to choose resettlement method and resettlement locations upon their willingness. 5.3.2 Principle and Procedure of Selecting Resettlement Sites 1) Principles The aim of rehabilitation of housing condition is to provide the relocated households with safe, convenient and graceful living environment. The new residential areas should have good terrain and geological conditions and reliable drinking water source. The location of new residential areas should be compatible with the economic rehabilitation plan. The location of new residential areas should be convenient for production, living and management. Save land, especially the cultivated land, as much as possible. Take the future population increase into account and leave rooms for further development.

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The distribution of houses in the residential areas should be based on the terrain conditions and take the lighting, ventilation, sanitation and greening conditions into account. The design of houses should meet the requirements of the relocatees and their financial abilities. 2) Procedures Based on the above principles, after on-site investigation and analyzing the terrain, geological, traffic, power and water source conditions, the location of new residential area is selected after negotiation with representative of relocatee and local government, taking the relocatees’ living and production conditions into account. 5.3.3 Planning of Remove and Housing In the area of Sangzhi County, this project affects 4 residential committees (villages) in Liyuan Town. 43 households with 201 people (including 63 agriculture populations) will be removed with the demolished area of 16860.04 m2. Among these 43 households, there are 2 households that only need to demolish attachments or auxiliary structures of the houses, and 4 households who have other residential houses. There is no need to provide rehabilitation for them after providing cash compensation according to the resettlement compensation standards. The rest 37 households with 176 people should be resettled because the project affected their normal daily life. Details of effects on relocatees are shown in Table 5.3-1. Table 5.3-1 Details of Remove and Resettlement in Sangzhi County Urban Flood Control Project

Village Household Demolish Own Population Need Administrative Town (Residential To Be Attachments Other Resettlement Area Committee) Affected Only Houses Household Population Sangzhi 1 4 43 2 4 37 176 urban area Liyuan 4 43 2 4 37 176 Wenminglu 37 2 3 32 149 Hepingjie 4 1 3 11 Wangjiaping 1 1 13 Wenchangjie 1 1 3

1) Exchange of Property Rights and Concentrated Resettlement According to the investigation of relocatees’ desires, 31 urban households with 135 persons in 3 affected village (residential) committees in Liyuan Town, Sangzhi County are willing to be relocated by exchange of property rights and concentrated resettlement. They also hope the government will unifiedly make an arrangement and the new houses must be with the same size of existing one. In accordance with the principle of ”unified planning, unified design, unified distribution, unified management and unified construction”, the EA and the implementation agency of land acquisition,

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together with local government, will determine and develop location of new residential area, in addition to unifiedly construct residences of apartment style for relocatees’ selection. After the on-site survey by county PMO and resettlement design agency, and based on collective consultation among local governments at different levels, relevant agencies and representatives of relocatees, the detailed measures for compensation resettlement of exchange of property rights is elaborated as follows: a) it should pay costs for the areas exceeding the existing houses’. Thus for the excessive areas within 15% areas of the existing houses, they should be paid according to compensation for existing houses; and the other excessive areas, according to the floors of new houses, should be paid by multiplying a certain quotiety. However the payment should be in the limit of 20% of the existing houses’; b) information about new houses, including house types, areas, floors, etc., will be provided by project implementation organ to the relocatees. Different house structures with different areas, namely 2 bedrooms and 2 living rooms with the areas of 75 m2, 3 bedrooms and 2 living rooms with the areas of 90 m2 and 4 bedrooms and 2 living rooms with the areas of 120 m2, will also be build according to the purchasing ability of the relocatees; C) the new houses with unified installation of the doors, windows, unified decoration of exterior walls, concrete ground, water and electric will be provided to the households; d) the new houses with property rights exchanged can access to market only after finishing sale of commercial houses. 31 households with 135 people affected by the project are willing to be resettled by exchange of property rights (all of them are urban residents, details are shown in Table 5.3-2.). Except for the 2 households that only need to demolish attachments and 4 households that have other house properties, there are 25 households with 113 people need to be resettled. They will be provided with apartments at the concentrated new residential area. The EA, implementation agency and the local government will determine the location of the new residential area, in addition to unifiedly construct apartment-style residences for relocatees’ selection. Table 5.3-2 Details of Urban Residents Relocation in Sangzhi County Urban Flood Control Project

Village Household Demolish Own Population Need Administrative Town (Residential To Be Attachments Other Resettlement Area Committee) Affected Only Houses Household Population

Sangzhi 1 3 31 2 4 25 113

Liyuan 3 31 2 4 25 113 Wenminglu 27 2 3 22 103 Hepingjie 3 1 2 7 Wenchangjie 1 1 3

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The preliminary location of new residential area is settled at Shangjiaping in Wenminglu Residential Committee after the on-site investigation made by county PMO and resettlement planning team, along with the consideration of negotiation result between local governments, relevant organizations and the relocatee representatives. This area is located on the left bank of Youshui River and at the east of the county seat. Bordering Wuliqiao Residential Committee on its east, Gaojiaping Residential Committee on its west, Wenchangjie Residential Committee on its south and Hepingjie Residential Committee on its north, this area has good conditions for access, geological, terrain, power and water supply. Before the implement of the project, the project sponsor will provide the affected household with sufficient information about the rebuilding plan, house design and the house size, so that the affected person can choose according to their preference and thus their needs and anticipation can be satisfied at the maximum degree. 2) Resettlement by Cash Compensation According to the investigation of relocatees’ desires, 12 households with 63 people in the project area are willing to accept the economic rehabilitation by means of cash compensation. These people mainly including 10 households with 46 people in Wenminglu Residential Committee, 1 household with 4 people in Hepingjie Residential Committee and 1 household with 13 people in Wangjiaping Residential Committee. For these affected persons, the project will provide cash compensation according to compensation standard of demolition houses, and the local government will provide new houses information for their own choice and purchase. During the project implementation, once the relocatee is willing to be resettled by exchange of property rights, the project implementation agency for land acquisition and demolition will provide houses of the value equal to the replacement value for relocatee’s selection and carry out the exchange of property rights. In recent years, the real estate market develops rapidly in Sangzhi County, with sufficient houses at different price levels for relocatees’ choices. Most relocatees want to purchase new houses near to existing residential areas, for the seasons of familiar surroundings and convenient working and children’s schooling; while partial relocatees want to purchase new houses in other areas in Sangzhi County, concerning the factors of being close to their relatives and working places, and changing the human circumstances, etc. According to the survey, the commercial and affordable houses in Sangzhi County are all brick-concrete structures with multi-storeys and complete facilities. The general price for commercial houses is 350~750 Yuan/m2 and 300~480 Yuan/m2 for affordable houses. Meanwhile there are many second-hand houses with relatively complete facilities in project area, most of which are

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brick-concrete multi-storied buildings with general prices of 200~400 Yuan/m2. According to the compensation standard for demolition houses and compared with new houses price, the relocatees, with such compensation, can purchase new houses with the same area of existing ones. The survey also indicates that the residents generally will combine the new houses purchase with improvement of living conditions. Most of them are willing to add investment to improve living conditions and largen residential areas. The affected residents, who want to largen housing areas for resettlement, improve subsistence facilities and living circumstances, will be provided with priority to getting bank loan under the help of this project if they have financial difficulty. Table 5.3-3 Details of Rural Residents Remove in the Flood Control Project, Sangzhi County

Village Household Demolish Own Population Need Administrative Sub-district (Residential To Be Hovels Other Resettlement Area & Township Committee) Removed Only Houses Household Population Sangzhi urban 1 3 12 12 63 area Liyuan 3 12 12 63 Wenminglu 10 10 46 Hepingjie 1 1 4 Wangjiaping 1 1 13 The rebuilding and resettlement planning of the project area are shown in Table 5.3-4. Table 5.3-4 Rebuilding and Resettlement Planning of the Flood Control Project, Sangzhi County

Village Total Cash Compensation Exchange of Property Rights Town County (Residential Resettler Resettler Resettler Resettle (Sub-district) Resettle Location Committee) (people) (people) (people) Location Sangzhi 176 63 113 Liyuan 176 63 113 Wenminglu 149 46 Choose by themselves 103 Shangjiaping Hepingjie 11 4 Choose by themselves 7 Shangjiaping Wangjiaping 13 13 Choose by themselves Wenchangjie 3 3 Shangjiaping

5.3.4 Infrastructure and Public Facilities 1) Resettlement by Cash Compensation The residents with cash compensation can purchase commercial houses or affordable houses only. The construction of commercial houses or affordable houses in Sangzhi County must be approved by planning department in Sangzhi County, and meanwhile with relevant matched facilities and public infrastructure facilities built, among which the public transportation is the first factor that should be considered for residential area construction, others include supermarkets, shops, schools, kindergartens, etc. So these residents who want to be relocated by paying cash compensation will

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not have troubles in daily life generally after purchasing commercial houses or affordable houses. Moreover before formal purchase of houses, these affected residents will carefully examine circumstances and construction of all the matched facilities around residential area. 2) Exchange of Property Rights 25 households with 113 people are to be resettled in Shangjiaping, the concentrated resettlement location. This resettlement site currently is dry farmland with easy access by the existing roads. a. Leveling the field: Field with an area of about 6.75 mu will be used and developed to rebuild the houses. b. Electricity power facilities: By making use of the existing electrical lines, reconstruction will be made and a 50kvA transformer will be added after the concentrated resettlement. c. Drainage facilities: Closed drain ditches will be adopted in the resettlement site. The main drain will be laid at both sides of the road and the sewage and rainwater will be drained separately. The main drain will have a total length of 0.3 km and the branch drain 0.3 km. d. Water supply facilities: Water will be supplied from the Sangzhi County Waterworks and a main water pipeline of 1.0 km long will be built. e. Others: Since the resettlement location is not far away from existing residential area, there is no need to add other facilities such as school and hospital. The existing social service system is still available to the resettlers when they need to go to school or see a doctor. The sub-district and village will be responsible to construct infrastructure and public facilities in the resettlement location and the investments will be covered by the compensation for infrastructure. 5.3.5 Assistance in Resettlement Process The land acquisition and resettlement implementation agency will be responsible for assisting resettlers at every aspect during the entire process of the resettlement: 1) Understand and try to satisfy the resettlers’ needs before the resettlement. 2) Help the resettlers dealing with their troubles such as arranging the vehicles and assisting the remove during the process of resettlement. 3) Try to realize the resettlers’ comfort and discomfort and try to solve their difficulties in time after the resettlement. 5.3.6 Rehabilitation Plans for Affected Villages 1) Wenminglu Residential Committee of Liyuan Town Wenminglu Residential Committee of Liyuan Town, one of the administrative villages governed by the Liyuan Town, Sangzhi County, lies at the left bank of Youshui River and in the east of the city. It adjoins to Wuliqiao Residential Committee of Liyuan Town in the east, Gaojiaping Village in the west, Wenchangjie Residential Committee in the south and Hepingjie Residential Committee in the

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north. It is very convenient that all the villages are connected by highways. Every household has been electrified and installed with tap water except 10 households use well. The popularization rate of telephones has been reached 60%. There are altogether 846 people in the residential committees, including 99 agricultural populations. In 2003 the net income per capita was RMB 1392 Yuan. In the project affected area it needs relocation of 171 persons in 37 households. Among them, 3 households have additional housing estates, and 2 households will lose attachments or partial attached rooms, no need for rehabilitation after cash compensation of replacement value, and the remaining 149 persons in 32 households need relocation. Following the urban planning principle of Sangzhi County, Wenminglu Residential Committee with 103 persons in 22 households will implement property rights exchange and concentrated resettlement. After the field survey and investigation by county PMO and resettlement task team, and the joint discussion by different levels of governments, associate units and village representatives, Shangjiaping is preliminarily determined as the new replacement housing site for property right exchange. Located at the left bank of Youshui River and the east of county seat, this site adjoins to Wuliqiao Residential Committee in the east, Gaojiaping Residential Committee in the west, Wenchangjie Residential Committee in the south and Hepingjie Residential Committee in the north, with convenient transportation, good geological, topographical, power and water conditions. Prior to the implementation of resettlement, the implementation agency will provide a number of reconstruction housing design, unit layout, and houses size to the affected households for their selection so that their requirement and expectation could be satisfied. For the remaining 46 persons in 10 households, they will be resettled by using cash compensation from the PMO to build or purchase houses by themselves. The PMO will provide them the latest information about house locations and prices, in addition to the assistance during the demolition. 5.4 Economic Rehabilitation Plans 5.4.1 Tasks of Economic Rehabilitation Efforts For the agricultural population who loses farmland for the project, the economic rehabilitation plan should be prepared for them. According to the investigation and statistics, the land requisition will affect 24 groups in 11 villages in Liyuan Town, Sangzhi County, and the number of directly affected population is 20 households with 86 people. The area of permanently acquired cultivated land is 52.88 mu and the number of persons who need economic rehabilitation will be 56. Given the size of impact, the project does not consider population’s natural increase factor for the time being and the number of rehabilitation population is based on the actual investigation number. Table 5.4-1 provides the number of economic rehabilitation persons in each affected village group. The temporary land acquisition of this project involves 5 villager’s groups in 5 villages in Liyuan

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Town. The number of actual affected population is 6 households with 30 people. There is no economic rehabilitation population since the affected villagers will be compensated every year during the temporary land occupation and the land will be leveled, restored and returned to the affected villagers after their occupation.

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Table 5.4-1 Population Accounting Table for Economic Rehabilitation

Existing Current State Reduction of cultivated land Existing cultivated land (mu)

Village Cultivated County Cultivated Reduction (Residential Group Rural Market Market land (mu/ Resettlers (District) Paddy Dry land (mu/ Sub- Paddy Dry rate committee) population Sub-total Vegetable Vegetable person) field farmland person) total field farmland plot plot Township (Town)

Sangzhi 225 167 15 152 0.71 34.75 0.57 34.18 0.59 16.91 56

Liyuan 225 167 15 152 0.71 34.75 0.57 34.18 0.59 20.8 56 Gaojiaping 15 20 20 1.33 18.29 0.57 17.72 0.11 91.5 14 Gaojiaping 15 20 20 1.33 18.29 0.57 17.72 0.11 91.5 14 Wuliqiao 90 35 15 20 0.39 6.88 6.88 0.31 19.7 24 Wuliqiao 70 15 5 10 0.21 4.64 4.64 0.15 30.9 22 Youku 20 20 10 10 1 2.24 2.24 0.89 11.2 2 Wenminglu 50 39 39 0.78 5.38 5.38 0.67 13.8 7 Cai 1st, 2nd, 29 24 24 0.83 3.89 3.89 0.69 16.2 5 3rd Nong 4th 21 15 15 0.71 1.49 1.49 0.64 9.9 2 Dongzhengjie 30 5 5 0.17 1.7 1.7 0.11 34.0 10 1st, 2nd 30 5 5 0.17 1.7 1.7 0.11 34.0 10 Wangjiaping 40 68 68 1.7 2.5 2.5 1.64 3.7 1 Wangjiaping 40 68 68 1.7 2.5 2.5 1.64 3.7 1

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5.4.2 Objectives of Economic Rehabilitation Reconstruction of production and restoring of relocaters’ living standards are the main standard for judging whether rehabilitation plan is feasible or not. In the view of agricultural incomes, there exists unbalanced phenomenon among different regions, in order to maintain the current living level of relocaters after resettlement, it should make it as the objective of resettlement that restoring and exceeding the current net incomes per capita. Between Dec. 2004 and Jan. 2005, under the cooperation of the county PMO and governments at different levels, the design units for resettlement carried out a detailed impact survey and social economic survey among affected people, including their incomes and expenditures. According to the analysis of the incomes and expenditures of agricultural households, in 2003 the net income per capita among affected people was RMB 1379 yuan. Based on annual average increase of 4.2% in the past (2001~2003), and based on the fact that the resettlement plan will be launched in 2005, the target income for the affected people will be set at RMB 1497 yuan per capita. In order to ensure the resettlers reach or exceed the original living standard, the net income per capita has an objective value of reaching or exceeding RMB 1497 yuan. 5.4.3 Economic Rehabilitation Standard According to the agricultural means of production status and local agricultural production level in project area, the input and output level analysis has been conducted for the economic rehabilitation project for resettlers in project area. The economic rehabilitation standard determined unifiedly is: in the group, re-allocate and adjust the cultivated land according to the remaining cultivated land per capita in the group after land acquisition; The vegetable greenhouse will be developed at the standard of 1 greenhouse per person (viz.0.25mu/person); the development of livestock breeding will be determined according to the loss of affected person’s land. 5.4.4 Environmental Capacity Analysis The environmental capacity of resettlement area refers to the number of resettlers that an area can support and absorb with normal economic and ecological sustainability. The scope of this investigation on resettlement’s environmental capacity is based on the rehabilitation scheme that is proposed in the Resettlement Action Plan. As majority of the farmland in project areas have been cultivated by the owners, the agricultural populations who finally need rehabilitation by land have to share original land resources with residents in the host areas, and to get mutual benefit with local residents. To achieve this objective, a series of measures should be taken to increase agricultural income, such as increasing investment on agriculture, improving fertility of field, changing variety of crops, transforming low-yield fields and changing dry farm lands into paddy fields.

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The comparison and analysis on the change before and after land reallocation among the affected villages and groups (Table 5.4-1) indicates: the land area of the 5 affected villages will be reduced from 0.71 mu/ person to 0.59 mu/ person after land acquisition, with average reduction of 0.12 mu/person, 16.91% of the average land held per capita. Among the 10 groups of 5 villages affected by land acquisition, those with average farmland over 0.5 mu /person amount to 6 groups of 3 villages, namely Youku group of Wuliqiao Residential Committee, the1st Vegetable planting Group, the 2nd Vegetable planting Group the 3rd Vegetable Planting Group and 4th Grain planting Group of Wenminglu Residential Committee and Wangjiaping group of Wangjiaping Residential Committee. Among them, Wangjiaping group of Wangjiaping Residential Committee has the most remaining farmland, averaging 1.64 mu/person. Among the remaining cultivated lands of these affected groups, a large number of farmlands are in low yield because of low investment, lack of management, poor soil fertility, simple crop, and incomplete irrigation facilities. Therefore by fully utilizing potential of existing farmland, it is feasible to improve the level of production and the unit yield and achieve the objective of rehabilitation. The proposed measures could include increasing investment on low yield filed, improving soil fertility, introducing high yield crops, improving cultivation system, building irrigation facilities, and reinforcing field management and other reformative measures, so that some dry land could be converted into irrigated land, and more yield could be achieved for most remaining land. However there are 4 groups (in 3 villages) among 10 affected groups (in 5 affected villages) with their average farmland below 0.5 mu per person after land acquisition. Among them, Gaojiaping group of Gaojiaping Village has the largest reduction with 91.5% of loss, with the land holding being 0.11 mu/person; while Gaojiaping group (in Gaojiaping Village) and the 1st and the 2nd groups of Dongzhengjie Residential Committee have the lowest per capita land holding after land acquisition, or 0.11 mu/person, with reduction being 91.5% and 34% respectively. Though the number of the occupied areas isn’t great, the reduction rate is high. The main reason for such situation is that in recent years most farmlands among these villages had been acquired along with the rapid development and expansion of Sangzhi County. Since for those agricultural populations who need rehabilitation by farmland, they have to share limited land resources with residents in the affected villages, the limited land holding makes it hard to guarantee mutual benefit for both resettlers and local residents. Concerning this, other related measures should be carried out to provide economic rehabilitation for those village groups with per capita farmland below 0.5 mu/person after land acquisition, which include providing cash compensation to the affected persons for other economic activities development (such as production structure adjustment, green house vegetables development) or non-agricultural economic activities development (such as animal husbandry

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development), so as to increase their income, as well as improve their poverty situation. 5.4.5 Production Rehabilitation Plan From Dec. of 2004 to Jan. of 2005, the resettlement design unit together with the county PMO carried out on-site investigation on the conditions of land, water resources and other natural resources in the affected areas; and held consultation meetings among relevant local township (sub-district) and affected individuals to discuss proposed resettlement rehabilitation scheme. Based on investigation, extensive consultation and analysis on local conditions, including land holding and sources of income for each affected village, general production rehabilitation plan has been developed. They include: (1) land readjustment of 8.17 mu within affected village groups, which will provide rehabilitation for 10 persons need economic rehabilitation; development of 2.5 mu of green house vegetables which will provide rehabilitation of 10 people; and 36 persons will be provided rehabilitation through animal husbandry development. For more details about group production rehabilitation plan, see Table 5.4-2. Table 5.4-2 The Planning Table Of Sangzhi County Production Rehabilitation Agriculture resettlement Cultivated land Green house Animal husbandry Resettlement adjustment within Sub-projectTownship vegetable Village Group population group region (Town) (person) Resettlement Resettlement Resettlement Area Area population population project population (mu) (mu) (person) (person) (person) Sangzhi 56 8.17 10 2.50 10 36 Liyuan 56 8.17 10 2.50 10 36 Gaojiaping 14 14 Pig and chicken Gaojiaping 14 14 breeding Wuliqiao 24 1.78 2 2.5 10 12 Pig and chicken Wuliqiao 22 2.5 10 12 breeding Youku 2 1.78 2 Wenminglu 7 4.75 7 Cai 1st, 2nd, 3rd 5 3.47 5 Nong 4th 2 1.29 2 Dongzhengjie 10 10 Pig and chicken 1st, 2nd 10 10 breeding Wangjiaping 1 1.64 1 Wangjiaping 1 1.64 1 1) Adjustment of Cultivated Land in Groups According to survey, 6 villager’s groups affected by project in project area would like to choose the

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economic rehabilitation mode of re-allocate the cultivated land in the group. The land resources in these villages and groups are usually abundant. The cultivated land per capita after land acquisition is between 0.64 mu/person~ 1.64 mu/person. The affected villagers are accustomed to make a living on the farmland, and lack other skills of making a living, they would like to keep their traditional production mode and means of living. In the overall project planning, there are 8.17mu cultivated land will be adjusted within the villager’s group for 10 resettlers. After adjustment of cultivated land, the cultivated land per person in this group will be less. In order to keep relocaters’ living level developing as other villagers’, it is necessary to develop fully the latent capacity of the remaining cultivated land, to insist the principle which is called that “exchanging quality for quantity”, and to enhance the yield and output value of the remaining cultivated land, as the cultivated land in the project scope are mainly located at side banks along the river presently, they are often inundated by flood, the actual yield is considerably low, and the flood standards will be improved after project implementation. In this project, together with the implementation of agricultural structure adjustment item, some agricultural technicians shall be hired to strengthen the agricultural technique training of rural relocaters and to guide them to fulfil the measures of “improving low yield land, changing dry farmland into paddy field”, rightly to enhance the elemental area output value and the cultivated land capacity, so as to fully and well rehabilitate the relocaters in this village with cultivated land adjustment in this villager’ s group. 2) Development of Green House Vegetable In the project-affected scope, Wuliqiao Group in Wuliqiao Residential Committee will has less cultivated land acquisition and without families to be lose their lands completely. According to the selection of most relocatees, in these groups the affected families shall be rehabilitated with cash compensation but not cultivated land adjustment. The affected families will use the compensation fee to develop green house vegetable, which can meet the urban residents’ requirement of Sangzhi County and also well solve the relocatee’s production to increase their income. In the entire project planning, there are 2.5 mu land for developing the counter season and nuisance free green house vegetables, and 10 relocatees will be resettled. 3) Development of Animal Husbandry According to the investigation, animal husbandry activity is one of the pillar supporting industries in the local rural areas, and the villagers are with strong enthusiasm and extensive experience, which include pig farm, goose farm, chicken farm, and duck farm, etc., and the sales conditions are superior. Considering the higher sale price of poultry meat and wide feed resource in the project region, the resettlers agree to develop animal husbandry activities with current tendency. For 4 villager’s groups in Gaojiaping, Wuliqiao and Dongzhengjie in the project area, the area of

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acquisitioned and occupied land is not very big, so no one villager will lose his/her land totally and there is no severe effect on them. According to the selections of most resettlers in these villages and groups, the land resettlement fee will be paid directly to the individuals whose land is acquired, and there is no land adjustment. As most affected population own abundant rest cultivated land, they plan to develop the animal husbandry with these compensation fees. For the whole project, it plans to establish and enlarge 4 small-size cultivation farms in 4 villager’s groups, and 36 resettlers will be resettled. The pig raising and goose raising industries will be the main parts of the animal husbandry, and the EA will invite some experts to conduct trainings on the animal husbandry, so as to guide the scientific breeding and selection of salable varieties. As the resettlement scheme of the project area is determined in terms of the opinions of most resettlers, maybe individual resettlers will disagree with the resettlement scheme of their village and group, and other modes shall be adopted, the PMO will try best to coordinate and settle the problems. If the resettlers have their own approaches for revenues, namely, they have fixed operation sites in other places, applicable operation skills and production equipment, or relatively steady income resources, as well as they accept cash compensation and they want to find jobs by themselves, after the EA verifies if they completely meet the self-employed conditions, and they sign the resettlement agreement, receive the notarial certificate and go through other procedures during the project implementation process, the resettlement subsidies will be directly paid to the self-employed persons. For the groups and villages need cash compensation, if individual resettlers want to undertake agricultural production, the EA will help them obtain land, and continue agricultural production. 5.4.6 Planning of Production Rehabilitation in Host Village 5.4.6.1 Gaojiaping Village in Liyuan Town 1) Current State Gaojiaping Village is an administrative village subordinated to Liyuan Town in Sangzhi County located in the north bank of Youshui River, the north of the city with 1-kilometer away from the city center. The village borders Fangjiaping Village of Liyuan Town in the east, Hepingjie Residential Committee in the west, Dongzhengjie Residential Committee in the south and Main urban district in north. There are village-class highways between each village and the communication is very convenient. There are 4 villager’s groups with 1680 persons of 630 households, which include 308 persons of agricultural population and 1372 persons of non-agricultural population. In 2003 the net income per capita was RMB 1827 yuan. There are 20 households with the proportion of 3.2% of the whole village engaged in the secondary and the tertiary industries such as catering, clothing, general merchandise etc. The proportion of labor force in the village is 60% and there are 34 people

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working outside mainly in Guangdong and Wenzhou who engaged in construction, wood processing, shoes making and electronical industries etc.. Planting vegetable is the main agricultures of Gaojiaping Village. There are 160 mu (the number is based on the actual survey, not from the statistical data) of cultivated lands in the village that include 95 mu of paddy fields, 25 mu of dry farmlands and 40 mu of commercial vegetable lands. The current per capita cultivated land is 1.33 mu. 2) Impact by Land Acquisition This project needs to occupy 18.29 mu of cultivated lands of the village which are include 0.57 mu of dry farmlands and 17.72 mu of commercial vegetable lands. Per capita residual cultivated land after land acquisition is 1.18 mu, reduced by 0.15mu, or with the reduction of 11.43%. Table 5.4-3 shows the cultivated land acquisition in detail.

Table 5.4-3 Cultivated Land of Each Villager’s group in Gaojiaping Village

Current cultivated land area Reducing Occupied cultivated land (mu) (mu) proportion of Per capita Per capita Current per capita cultivated cultivated agricultural cultivated Group Commercial land before Commercial land after population Paddy Dry Paddy Dry land before Total vegetable acquisition Total vegetable acquisition (Person) field farmland field farmland and after land land (mu/person) land (mu/person) acquisition (%) Gaojiaping 15 20 2 18 1.33 18.29 0.57 17.72 0.11 91.45 Bo 1st 30 42 26 9 7 1.40 1.40 Bo 2nd 40 49 35 6 8 1.23 1.23 Bo 3rd 35 49 34 8 7 1.40 1.40 Total 120 160 95 25 40 1.33 18.29 0.57 17.72 1.18 11.43

3) Economic Rehabilitation Measure The permanent land acquisition of Gaojiaping village will actually affect 3 households with 14 people and the population needs to be production-resettled is 14. On the basis of collecting resettlers’ opinions widely, the following methods will be adopted to economic rehabilitation through discussing and investigating collectively of village committee and combining the real situation of the village. The economic rehabilitation methods are as follows:

① It is hard to conduct land adjustment within group due to only 0.11 mu of per capita residual cultivated land in Gaojiaping group. According to national relevant policies and measures, land compensation will be sufficient to every household who lost the lands. Land adjustment will not be conducted within the group.

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② According to investigation, the animal husbandry is the main industry in local region currently, people in project region are good at breeding with enthusiasm, and live pigs, chicken and ducks are sold well. In view of the high price of poultry meat products and extensive feeding stuff source, affected people would like to develop animal husbandry by use of current situation. According to the discussion result of villagers, a small-scale hoggery and a hennery which all adopt joint-stock mechanism will be established. The affected households can buy the shares in terms of free combination willingly to get bonus annually.

③ According to the wishes of villagers, the village committee will open skill training courses and instruction class to give supports affected households for stockbreeding development. 5.4.6.2 Wuliqiao Residential Committee in Liyuan Town 1) Current State Wuliqiao Residential Committee is an administrative village subordinated to Liyuan Town located in the left bank of Youshui River, the east of the city with 0.5-kilometer away from the city center. The village borders Dingjiayu Village of Ruitapu Town in the east, Chixi Village of Lifuta Town in the west, Qiaotouxiang Village of Yongding District in the south and Nancha Village of Hongjiangguan Township in north. There are village-class highways between each village and the communication is very convenient. There are 2 villager’s groups with 392 persons of 87 households, which include 90 persons of agricultural population and 302 persons of non-agricultural population. In 2003 the net income per capita was RMB 1513 yuan. There are 5 households with the proportion of 5.8% of the whole village engaged in second and third industries such as catering, clothing, general merchandise etc. The proportion of labor force in the village is 61% and there are 78 people working outside mainly in Guangdong who engaged in processing, shoes making industries etc.. Growing vegetable is the main agricultures of Wuliqiao Village. There are 35 mu (this the investigation number, not the statistical data) of cultivated lands in the village that include 15 mu of dry farmlands and 20 mu of commercial vegetable lands. The current per capita cultivated land is 0.39 mu. 2) Impact by Land Acquisition This project needs to occupy 6.88 mu of cultivated lands of the village which are all the market vegetable plots. Per capita residual cultivated land after land acquisition is 0.31 mu, reduced by 0.08mu per capita, or with the reduction of 19.66%. Table 5.4-4 shows the cultivated land acquisition in detail.

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Table 5.4-4 Cultivated Land of Each Villager’s group in Wuliqiao Residential Committee

Current cultivated land area Occupied ruled cultivated land Reducing (mu) Per capita (mu) Per capita proportion of Current cultivated cultivated per capita agricultural Group Commercial land before Market land after cultivated population Paddy Dry Paddy Dry Total vegetable acquisition Total vegetable acquisition land before (Person) field farmland field farmland land (mu/person) plot (mu/person)and after land acquisition(%) Wuliqiao 70 15 5 10 0.21 4.64 4.64 0.15 30.93 Youku 20 20 10 10 1.00 2.24 2.24 0.89 11.20 Total 90 35 15 20 0.39 6.88 6.88 0.31 19.66

3) Economic Rehabilitation Measures The permanent land acquisition of Wuliqiao village will actually affect 5 households with 24 people and the population needs to be production-resettled is 24. On the basis of collecting resettlers’ opinions widely, the following methods will be adopted to economic rehabilitation through discussing and investigating collectively of village committee and combining the real situation of the village. The economic rehabilitation methods are as follows: The per capita residual cultivated land in Youku group is over 0.5 mu. In view of the rich land resource in this group, land adjustment within group will be adopted for affected persons resettlement. According to the population who need resettlement in these groups and calculations according to per capita residual cultivated land principle, 1.78 mu of cultivated lands will be planned to contracted to affected persons. According to national relevant policies, the land compensation fee will be sufficient for villager’s groups with average distribution in persons; The per capita cultivated land after land acquisition in Wuliqiao Group is 0.15 mu due to the less land resource there. Considering the villagers are enthusiastic of green house vegetable planting and experienced on planting. Combining the Planting Industry Plan of Sangzhi County, most of villagers would like change 2.5 mu of low production dry farmlands to 10 green house vegetable by use of land compensation funds. Joint-stock mechanism will be adopted for the green house vegetable base, affected households will get bonus every year. 5.4.7 Investment of Economic Rehabilitation 1) Farmland Readjustment In the project, paid-for land readjustment should be carried out in allocating cultivated land, According to the plan, 8.17 mu of commercial vegetable lands will be adjusted, and the cost for such land readjustment will be RMB 128,100 yuan based on RMB 15,678 yuan per mu to be compensated for paddy field as adopted in the project.

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2) Develop Green House Vegetables Following land readjustment, due to reduction of farmland, compensation funds of land should be used for production development by means of improving cultivated structure, strengthening the management on fields to recuperate the loss from losing part of cultivated land. According to the analysis on cost for green house development, each green house will occupy about 0.25 mu of farmland, and 4 green houses will be set up each mu. Based on RMB 3,671 yuan for each green house, the average cost of RMB 14,685 yuan will be needed to transfer paddy field into green house vegetable field each mu. (Table 5.4-5 shows the information in detail). Table 5.4-5 Analysis of Investment Unit Price in Changing Paddy Field into Green House Vegetable Land Unit price Item Unit Quantity Sum (yuan) Remarks (yuan) 1. Project investment 2050 1.1 Green house Piece 1850 1 1850 Labor Including field-cleaning, 1.2 Labor 20 10 200 day trellis-shelving, etc. 2. Matching facility 120 2.1 Hydraulic facility Yuan 120 3. Operation cost 1160 3.1 Seed Yuan 700 3.2 Farm fertilizer t 140 2 275 3.3 Chemical fertilizer kg 1.24 55 65 3.4 Agrochemical kg 120 4. Technical service 166.5 Calculated by 5% of fees of items 1-3 fee 5. Unforeseen fee 174.8 Calculated by 5% of fees of items 1-4 6. Total 3671

According to economic rehabilitation plan, a total of 2.5 mu of green house vegetable fields will be developed, which will cost about RMB 36,700 yuan. 3) Develop Animal Husbandry Activities For the affected farmers, the cash compensation measures will be selected for the animal husbandry resettlement mode, the affected farmers can undertake the animal husbandry and other activities with these compensation fees. According to the land losses of the affected farmers who will be resettled by cash compensation, the total investment will be RMB 0.36 million yuan. According to the above analysis and calculation, a total of RMB 0.5248 million yuan will be needed for economic rehabilitation for the project. Detailed information is shown in Table 5.4-6.

Table 5.4-6 General Investment Estimate of Resettlement Economic Rehabilitation

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Investment Item Unit Unit price(yuan) Quantity Remarks (million) yuan) Total 0.5248 1. Adjust commercial vegetable land mu 15678 8.17 0.1281 within group 2. Develop green house vegetables Mu 14685 2.5 0.0367 3. Develop animal husbandry activity person 10000 36 0.36

5.4.8 Forecast of Economic Income Level Resettlement production development means to combine resettlement with project construction, resource exploitation, soil and water conservation and economic development and make resettlement production reach or exceed intrinsic living condition step by step. Planning scheme of production development is brought out on the basis of natural and social economic characters of project region and collecting opinions of resettlement. Analysis of output profits of its developing items is as followings. 1) Green house vegetables: The production cost of normal year of each green house vegetable is 1160 yuan per year (including operation cost and technical service charge) and each green house can yield 3000 kg of counter season vegetables. Each green house can add 1686 yuan of profit per year which is beyond the per capita pure income of 1497 yuan in project region if the profit of vegetable per kg is calculated as one yuan and cost and alternative land profit are deducted (the alternative land profit is 154 yuan if the annual production value of dry farmland is 616 yuan per mu and each green house occupies 0.25 mu). 2) Animal husbandry: According to the investigation, 550 yuan of all kinds of costs are needed for raising each pig and the net profit for selling each pig is 250 yuan. The income can reach 2000 yuan if each person can raise 8 pigs per year. Because 10 yuan of all kinds of costs are needed for each chicken and the net profit of each chicken is 9 yuan, the income can reach 1620 yuan if each person can raise 180 chickens per year. The above incomes are all beyond the per capita pure income of 1497 yuan. Table 5.4-7 shows the analysis of input and output of animal husbandry activities in detail.

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Table 5.4-7 Analysis of Input and Output of Animal Husbandry

Item Raising pigs Raising chickens Remark Raising quantity (piece/head) 8 180 Production Unit production value (yuan) 800 19 value Subtotal 6400 3420 (yuan) Cost Unit cost(yuan) 550 10 (yuan) Subtotal 4400 1800 Profit Unit profit(yuan) 250 9 (yuan) Subtotal 2000 1620 5.4.9 Rehabilitation Measures for Resettlers’ Economic Income The project implementation agency will offer help and support to the resettlers as much as possible during the whole course of resettler livelihood recovery in this project. They include 1) Distribute resettlement subsidy and help resettlers to become self-employed 2) Strengthen the training of production skills for resettlers and invite experienced specialists to train the resettlers to develop cultivation industry and animal husbandry industry. 3) Give first priority to the resettlers when hire labour for the project construction. Project construction will afford some employment chances including land levelling and landscape works. Though some project tasks will be temporary, local resettlers will be given short-term incomes which will be useful to enhancing living level of affected people and restoring their income and livelihoods. According to engineering construction organization and design, this project will cost 0.4867 million labour days. 20% of employees will be local resettlers, which means 0.0973 million labour days. The resettlers will get 2.4335 million yuan (8660 yuan for each resettler in average) from this project construction if the wage is calculated according to current average labour wage: 25 yuan per day. 4) Local government will provide the financial incentives and tax abatement to the resettlers who engaged in second and third industries, and local banks will consider to give priority to the resettlers. provide financial subsidy: enjoy the national policy of “ check the basic amount, increase the subsidies and provide special supports ”; conduct ethnic agricultural tax abatement; establish “supporting funds for economy underdevelopment region” ( development funds in short) which will be mainly used in development of underdeveloped revolutionary bases, minority regions, outlying regions and poverty regions etc.. the central bank and other banks in Hunan province will provide preferential policy for scale of credit and fund arrangement of ethnic regions. 5.5 Rehabilitation Plan for Affected Commercial Units

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The project will affect 8 small shops (all the private-owned shops) during land acquisition and resettlement. 4 of them are located in the Wenminglu Residential Committee, 3 are located in Hepingjie Residential Committee and 1 in Wangjiaping Residential Committee. Table 2.3-8 provides detail of such impacts among the 8 affected shops. The 8 structure owners are either owners of small shops (7) or leased to others (1 of them) for operation with relatively small size (averaging 65.5 m2 per unit). The main customer base is local residents with few floating population. Due to located in low area, they are often impacted by frequent flooding. With construction of other commercial markets in Sangzhi County, the businesses of these shops are quite poor. According to the investigation, most of them have had the idea of changing business or operating on other places and hoped to select the shop owners would like to change site or change business. They wish the after getting compensation, they will find alternative site to open new business. The project implementation agency will provide the up-to-the-date information on availability of retail shop spaces in Sangzhi County. For those house owners who are also shop owners, they will be give priority to units along main street with heavy traffic or both sides of main routes (Wenminglu, Hepingjie, etc.) so that their business level could be maintained. For those shop owners who leased spaces, they will be provided compensation for lost business and assistance of moving. Since there are many wholesale and retail shops (such as Nandamen market) in Sangzhi County, distributing in many streets with relatively affordable prices, the affected shop owners could easily to find replacement spaces to continue their business. The project implementation agency will assist them to identify such spaces 5.6 Rehabilitation Plan for Affected Enterprises and Institutions According to the investigation, there are 2 enterprises and 6 institutions affected by the land acquisition and demolition, which are shown in the Table 2.3-9 in detail. Through the collective consultation of the units responsible for resettlement planning, county PMO, government agencies in charge of enterprise administration, and representatives of affected units, it is decided that cash compensation will be provided to 8 affected enterprises or institutions. 1) Enterprises: There are 2 enterprises affected by the project. For these 2 enterprises, only administrative offices or accessorial production houses will be affected, which will not have impacts on their normal production. None of them need to be relocated entirely. They could rehabilitate such impacts by using provided compensation to rebuild affected structures within their boundaries. 2) Institutions: 6 institutions are affected by land acquisition and demolition of project. Because the 6 institutions have relatively large land area with area for rebuilding, and because of most of impacts are only

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administrative houses and accessorial houses which are not needed to be relocated entirely. They could rehabilitate such impacts by using provided compensation to rebuild affected structures within their boundaries. Due to the production and business stop, the units’ loss in the demolition and relocation period will be given compensation (including the compensation for the loss of staff’s salary). The labor force arrangement cost occurred during the resettlement will be paid by the project executive agency using the contingency. 5.7 Minority Population Resettlement and Rehabilitation Minority population also can enjoy the following preferential policies in resettlement: 1) The minority population resettlement shall be on the basis of full consideration of their customs: such as their dresses and personal adornment, food, residence, production, festival, faith and taboo, etc. 2) Train and promote minority cadres further according to the training of Party and Cadres Training schools. 3) The preferential policies on finance and taxation: the people enjoy the national policy of “ check the base, increase the subsidies progressively and provide special supports ” for the minority autonomous regions continuously; the State will establish flexible fund for autonomous regions which is accounted as 5% of the summation of economic construction operation expenses, social culture and education operation expenses, executive management expenses and other operation expenses; the State will enhance the setting proportion of budgetary reserves which is accounted as 3%; and conduct ethnic agricultural tax abatement. 4) The preferential policies on education: conduct priority matriculating of the minority students with the same marks as the other students are and adopt ration enrollment to increase the matriculating ratio of minority students; and the marks of the minority students could be 20 lower for minority students. 5.8 Vulnerable Groups Resettlement and Rehabilitation During the course of resettlement process, appropriate department of the project will specially pay attention to the resettlement of vulnerable group. To those affected vulnerable group mainly including elderly living alone, women headed households, and extremely poor families, in addition to standard compensation provided by the project, the project will provide additional financial or physical assistance so that their rehabilitation and restoration of income and livelihood could be completed as soon as possible. 1) The project will afford special allowance for the families under the poverty line to help them

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construct houses and keep their living level. The allowance standard will be determined by the real situation and their needs. Allowance for the vulnerable group will be calculated by 1% of the total cost of land compensation and resettlement for the project, which will be used to provide support to the vulnerable group affected by the project. The detailed measures are as following: a) Provide 3000 Yuan per household of rebuilding subsidy to the 5 depressed households whose poverty is mainly caused by the oldness and debility, diseases, single-parent families and non-labor force families; b) Provide 600 Yuan per person for 9 persons in 5 poor households to help them overcome the difficulties in demolition and relocation. 2) After implementation of the project, the affected households could apply for loan, and local village collectives could provide guarantees for such application. 3) During the course of implementation of the project, local village collectives will help those vulnerable families with selecting new housing site, rebuilding new houses, and transferring to new houses as well as house construction. They include those elderly living alone, disabled, and women headed households. 5.9 Planning of Relocation and Reconstruction Special Facilities 5.9.1 Transport Facilities The land acquisition of project construction will affect 0.196km simple highway. According to the project design, the reconstruction of simple highway, if the existing road crosses the embankment, will be built with up-embankment road to settle transport problem on the both sides of the embankment; while the existing road extends along the embankment, the reconstruction will be in parallel and by moving back in existing locations. Additionally, the project design also covers the rehabilitation of the affected simple highway. 5.9.2 Transformer Facilities The land acquisition will affect 10KV high-voltage lines of 1km and low-voltage lines of 0.7km. According to the project design, the reconstruction of electric line, if the existing lines crosses the embankment, will be carried out by building more higher pole and line and crossing over the embankment; while it affects tendence of electric lines along the embankment, it will be relocated by changing its route and moving back in existing location. The reconstruction of electric facility will be designed by and in the charge of ministry of electric power in Sangzhi County. 5.9.3 Irrigation Facilities The land acquisition of project will affect one electric pumping station with 17km. According to the principle of existing scale and existing function, it will be reconstructed in existing place by moving back. The reconstruction of electric pumping station will be designed by and in the charge of ministry of water resources in Sangzhi County.

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5.9.4 Postlines The land acquisition of the project construction will affect HYA3-0.5 postlines of 0.15km. The reconstruction of postlines will be carried out by building pole and line much higher and crossing over the embankment, if the existing postlines cross the embankment; while they affect tendence of postlines along the embankment, they will be relocated by changing their routes and moving back in existing locations. The reconstruction of post facilities will be designed by and in the charge of ministry of post and telecommunication in Sangzhi County.

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6. Institutions and Responsibilities 6.1 Institutions Engaging in the Resettlement Planning The investigation of demolition and resettlement planning of the project are completed jointly by the resettlement consultation unit organized key Project Management Office of Hunan Provincial Water Conservancy Department and related resettlement design units. Also, Sangzhi County People’s Government and Water Resources Bureau have appointed some persons to take part in the investigation and planning. The principals and the masses of the townships (towns sand sub-districts), villages (residential committees) and groups affected by the project also take part in the investigation and planning. 6.2 Institutions and Responsibilities of Resettlement Implementation Management 6.2.1 Institutions Special Resettlement Office will be set up in Hunan Provincial Project Management Office and Sangzhi County by the project to take charge of the implementation of each resettlement. There will be 1~8 persons in the Project Management Office. Because of the high sociality of the resettlement work, the Project Management Office at all levels should be formed by the persons from the government, land administration department, planning department and agriculture department. A person with rich management work experience will be the leader of the project resettlement office (PRO). There will be 1~2 main leaders in the townships (towns and sub-districts) and the villages (residential committee) to take charge of resettlement work in the administration areas. (One government leader and one land administration leader will take charge of it in township, town and sub-district, and the village head or director will take charge of it in village and residential committee.) See Fig. 6.2-1 for the Frame of Project Resettlement Institutions. 6.2.2 Responsibilities 1) Project Resettlement Leading Group of Hunan Province The leaders from Hunan Provincial People’s Government, Hunan Plan Committee, Hunan Provincial Water Conversancy Department and Loans Project Execution Office who are in charge of the project will be appointed to constitute the “Project Resettlement Leading Group of Hunan Province”, and its main responsibility is to strengthen the leadership in the project, to coordinate and to organize the relation of resettlement institutions at all levels.

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Hunan Provincial ADB Loans Project

Office

Hunan Provincial Project Resettlement Leading

Group

Hunan Provincial Resettlement

Management Office

ADB Loans Project Office of Sangzhi

County

Project Resettlement Resettlement Design Independent Monitoring and Leading Group of Sangzhi Unit Evaluation Institution County

Project Resettlement Implementation

Management Office

Resettlement Management Implementation Office of Township

(town and sub-district)

Village (residential) Committee and Village Group

Resettlement Household

Fig. 6.2-1 Chart of Project Resettlement Institutions

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2) ADB Loans Project Office of Hunan Province The main responsibilities of ADB Loans Project Office of Hunan Province are to organize the work of the project resettlement and the planning, to take charge of the policy compilation of resettlement activities of the project, and to organize and coordinate the relation of resettlement institutions at all levels. Provincial PRO will be set up under the Provincial ADB Loans Office to deal with the daily affairs. 3) Project Resettlement Management Office of Hunan Province Project Resettlement Management Office of Hunan Province is constituted by Loans Project Execution Office, and its main responsibilities are to strengthen the leadership during project implementation in Hunan Province, to coordinate the work relation of each county (city and district) in Hunan Province. 4) Project Resettlement Leading Group of Sangzhi County Project Construction Leading Group of Sangzhi County is managed by the leaders of People’s Government of Sangzhi County who are in charge of the project, and its main responsibilities are to strengthen the leadership for the project implementation in the county, to coordinate the work relation of each township (town and sub-district) in the county, and to guarantee the smoothness of the construction of main body project, land acquisition, demolition and resettlement. 5) ADB Loans Project Office of Sangzhi County The main responsibilities of ADB Loans Project Office of Sangzhi County are to strengthen the leadership of the project, to take charge of policy compilation of resettlement activities, and to organize and coordinate the relations of resettlement institutions at all levels. What is more, County Resettlement Implementation Management Office will be set up under it to deal with the daily works. 6) Project Resettlement Implementation and Management Office of Sangzhi County Project Resettlement Implementation and Management Office of Sangzhi County is the project management institution, and its main responsibilities are to fulfill management, planning, implementation, coordination and supervision and monitoring of the resettlement.

① Work out the policies on land acquisition, demolition and resettlement of the project;

② Entrust the design units to determine the range affected by the project, to investigate the physical index of the impact of the land acquisition and demolition, and to preserve the data;

③ Apply for the license on land using and planning, and license on land using and construction;

④ Responsible for the service training for main resettlement leaders of Land Acquisition, Demolition and Resettlement Office;

⑤ Organize and coordinate the compilation and execution of Resettlement Planning Report;

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⑥ Responsible for the management and allocation of resettlement funds, and supervision of the using of funds;

⑦ Guide, coordinate and supervise the resettlement implementation activities and the progress;

⑧ Preside over and check the internal monitoring activities, and take charge of the compilation of the report on Land Acquisition, Demolition and Resettlement;

⑨ Determine the external monitoring institution and assist in the external monitoring activities. 7) Town (township and sub-district) Resettlement Implementation and Management Office It is led by the leaders of each township (town and sub-district) who are in charge of the project and composed of the main leaders of Land Administration Station, Police Office, Civil Administration Station. And the main responsibilities are: Take part in the project investigation and assist in the compilation of Resettlement Action Plan; Organize the masses to join and publicize the resettlement policy; Implement, check, monitor and record all of the resettlement activities in the township (town); Go through the demolition and rebuilding procedures for resettlers’ houses; Responsible for the payment and management of land compensation funds; Supervise the land acquisition, demolition of houses and attachment, and the building and demolition of houses; Report the conditions of land acquisition, demolition and resettlement to the Land Administration Bureau of the County; Coordinate and deal with the contraventions and problems in work. 8) Village (Residential) Committee and Villager’s group Village (Residential) Committee and Village Group is composed of the main leaders of the Village Committee and villager’s group, and its main responsibilities are as follows: Take part in the investigation of the social economy and the project impact; Organize the masses to negotiate and to publicize the land acquisition and demolition policies; Select the site for resettlement and allocate housing plot for resettlement household; Carry out the land reclamation, adjustment and allocation, and organize the resettlement activities such as production development; Responsible for the funds management and allocation; Report the opinions and advice of the resettlers to the higher authorities; Report the progress of resettlement implementation; Provide help for the households with difficulties in demolition. 9) Responsibilities of Design Unit

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During the planning design stage, survey the physical index of demolition, environmental capacity, developable and available resources exactly, to assist the government in the project area to work out the resettlement scheme, to compile the budgetary estimate of compensation and investigation for demolition and the Report on Demolition and Resettlement Planning, and to work out related drawings. In implementation period, design document, technical specifications, drawings and notice will be provided to the County PMO in time, and technical explanations on design will be made in stages to the Project Management Offices at all levels, each settlement office will be assisted in the demolition and resettlement production, and the resettlement planning schedule will be made further improvement according to the actual conditions. 10) Responsibilities of Independent Institution for External Monitoring and Evaluation The County Project Management Office will hire qualified monitoring and evaluation institutions to act as the monitoring unit for the resettlement, and its main responsibilities are: As a independent institution for monitoring and evaluation, its main responsibilities are to observe each aspect of the resettlement plan and its implementation, to monitor and evaluate the resettlement work, the implementation result and the social adaptability of the resettlers, and provide resettlement monitoring and evaluation report to the ADB through the PRO. Provide technical consultations for the PRO in the aspects of investigation and process of the data. 6.3 Supervision Institutions Sangzhi County Project Resettlement Implementation and Administration Office, the project management institution, shall preside over and check the internal monitoring activities, compile the Report on Land Acquisition, Demolition and Resettlement of the project, report the resettlement implementation progress, problem and advice to the Provincial Project Management Office regularly in order to maintain the good function of resettlement institution at all levels in the course of project implementation, coordinate work of all aspects and master the resettlement implementation status. At the same time, the County PMO shall hire qualified and independent external monitoring unit to take the charge of the demolition and compensatory monitoring and evaluation work of resettlement. Independent monitoring unit shall provide technology consultation for internal monitoring and management, provide overall resettlement implementation information for County PMO and report resettlement progress, problem and disposal advice for County PMO.

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6.4 Resettlement Management System Employer responsibility system, project supervision system, project bidding system and contract management system are being carried out in resettlement project management. Sangzhi County PMO is in charge of the bidding work of resettlement implementation, special projects and infrastructure. And independent supervision units shall be invited to monitor and evaluate the resettlement. What is more, computers shall be used to manage the information and keep all archives of resettlement and materials in the course of implementation in PMO at all levels. 6.5 Personnel and Facilities of Resettlement Institution 6.5.1 Personnel Arrangement In order to maintain the resettlement work to be carried out smoothly, special personnel shall be arranged for the resettlement administration institution at all levels to form a smooth information transmission channel. Personnel of resettlement institution consist of administrators and professional technical staff who own certain profession level, management qualification and land acquisition demolition working experience. See table 6.5-1 for details of related institution personnel conditions. Table on the Personnel of Resettlement Implementation and Management of Urban Flood Control Project of Sangzhi County

Table 6.5-1 Unit: Person Financial Technical Political Rear-service Institution Name Total Administrator Staff Staff Worker Staff County Resettlement Implementation and 8 2 2 2 1 1 Management Institution Town Resettlement Implementation and 5 2 2 1 Management Institution Total 13 4 2 4 1 2

6.5.2 Facilities Arrangement The facilities equipped with the institution mainly refer to the resource arrangement for resettlement implementation institutions such as office buildings for resettlement institutions at all levels, transportation tools, office facilities, communications facilities (see Table 6.5-2 for details). Total amount of facilities arrangement as planned for the resettlement institution is 0.3166 million yuan, and the funds are open-fee of resettlement implementation institution of general budgetary estimate of resettlement investment.

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Table on Facilities Arrangement of Resettlement Implementation Institutions of Urban Flood Control of Sangzhi County

Table 6.5-2 Quantity Unit County Town Investment Item Type Unit price Remarks Total Resettlement Resettlement (104 yuan) (yuan) Office Office 200 yuan/house, 1. Office house House 9600 3 2 1 2.88 and hire for 40 years 2. Liebao Transportation Piece 171800 1 1 17.18 CFA-6400A tools 3. Office 11.6 facilities Lenovo 3.1 Computer Yangtian Set 8499 3 2 1 2.55 M6000 3.2 Printer HP8000 Set 8260 2 1 1 1.65 3.3 Duplicating Panasonic Set 13600 1 1 1.36 machine FP-7818 3.4 Digital SONY Set 4880 2 1 1 0.98 camera DSC-V1 3.5 Air Gree 505Tly Set 4000 3 2 1 1.2 conditioner Type 3.6 Office table Set 1000 13 8 5 1.3 and chair 3.7 Scanner HP4670C Set 3000 2 1 1 0.6 Liguang 3.8 Fax Set 1680 2 1 1 0.34 8500 Siemens 3.9 Telephone Set 128 3 2 1 0.04 8000 type 3.10 Notebook Toshiba Set 15800 1 1 1.58 computer PA100 4. Total 31.66 investment 6.6 Training Schedule To guarantee the work of project implementation work be carried out smoothly, the resettlers should be trained and the training plan should be formulated. Resettlement training plan contains of two aspects: training plan for resettlement administrator and production skill to be mastered by resettlers.

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6.6.1 Training Schedule for Resettlement Administrator Plan and establish county-level, township-level and village-level resettlement institution personnel training and human resource development system. Resettlement administrator training work can be carried out by inviting leaders or experts to give the lecture, launching technology training workshops in each unit, study tour in resettlement project, and training the administrators on the spot. Training content contains: 1) Resettlement principle and policy; 2) Resettlement planning and management training; 3) Resettlement implementation and planning design; 4) Resettlement implementation progress management; 5) Resettlement finance management; 6) Resettlement project quality control; 7) Management information system; 8) Resettlement monitoring evaluation; 9) Resettlement project management. 6.6.2 Production Skill Training Planning for Resettlers Resettlement production skill training plan mainly is aimed to train the resettlement household in the aspect of knowledge and practical technology. The training mode of integrating long-term training, short-term training and key technology training together shall be adopted, and also some young person with certain knowledge shall be sent to study in Hunan Agricultural University and Hunan Agricultural Science Academy in order to provide a number of technical backbones for the project area; Regarding the provincial and County training center as the carrier, we shall hold all kind of practical technology training in order to make a number of resettlement master one to two kinds of practical technology and lead other resettlement households to be rich by science. 1) Training for resettlement backbone: it is planned that we will recommend and sent some resettler’s children or resettlement backbone who is qualified in knowledge and is active to receive mid-term and long-term training and education in Hunan Agricultural University in order to make them the pioneers of resettlement development. 2) Training on planting technology: carry out the training on big-shed vegetable production technology, high quality cross hybrid rice, two-low rape technology promotion by inviting agricultural technology experts to give classes in the fixed locations and demonstrate on the spot. 3) Training on aquaculture technology: carry out the training on poultry feeding skill and livestock aquaculture skill by inviting agricultural science experts to have class in the fixed locations and

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demonstrate on the spot. 6.6.3 Investment on Resettlement Training and Planning Six terms of classes are planned to run and 68 persons/time for training the resettlers and resettlement leaders, to be more exactly, 3 terms for resettlers (26 persons/time) and three terms for resettlement leader (15 persons/time), and the investment on training planning is 0.0596 million yuan as planned (technology training costs will be listed into the General Budgetary Estimate of Resettlers). (See Table 6.6-1 for details) 6.7 Measures for Institution Consummating 1) Make the responsibility and obligation range of resettlement institution clear and definite, and strengthen the supervision and management; 2) Enrich the forces of resettlement institution at all levels by phase, and especially strengthen the profession technology forces. All of the personnel must own certain profession level and management ability, and strengthen the skills in computer, testing equipment and transportation tools; 3) Select the working personnel strictly, strengthen the service skill training, and carry out the training for administrator and technical staff in order to improve the service ability and management level; 4) Arrange women leaders with proper quantities and make them play a role in resettlement; 5) Establish the database and strengthen the information feedback to guarantee the smoothness of information both from the higher to the lower and from lower to the higher, and important problem shall be solved by resettlement leading group. 6) Strengthen the report system and internal monitoring, and solve the problem in time. 7) Establish the external monitoring evaluation mechanism and the pre-alarm system.

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Table 6.6-1 Table on Resettlement Implementation Training Plan

Periods Funds Quantity of Days of Item Training place Training mode Lecturer Training objective Training content of arrangement person training training 104 yuan 1. Training for resettlement 15 3 3.6 management personnel 1. Principle and policy of resettlement; 2. Planning and Hunan Lecture by Expert from Provincial Administrator from management of resettlement project; 3. Management of 1 1 5 0.50 Provincial PRO expert PRO County PRO resettlement finance; 4. Management information system; 5. Resettlement Implementation management 1. Administrator from PRO of each town and 1 PRO of Expert from Provincial Class township The same with the above 1 3 1.6 Sangzhi County PRO 2. Administrator from 11 each village Domestic Domestic Main business person of Resettlement implementation and supervision survey, visiting 2 1 10 1.50 similar project PRO of all levels management and study 2. Training for resettlement 26 3 2.36 production skill Advance Hunan 1. Technology management of production; 2. studies or Teachers from Hunan Resettlement backbone Half a Agricultural 1 Management on agricultural technology; 3. 1 1.0 entrusted Agricultural University and resettler’ s children year University Multi-operation of agricultural production studies Administrator and Resettlement PRO of agricultural technology representatives from each 25（female 1. Training on planting technology; 2. Training on breed township Class 2 7 1.36 expert from County township, town and 13） aquatics. (sub-district) PRO village 3. In total 41 6 5.96

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7. Public Participation and Harmonization with Residents in Relocation Sites 7.1 Public Participation Strategies According to relevant resettlement policies and national, provincial and local regulations, in order to maintain lawful rights and interests of resettlers and affected units, and to minimize complaints and dispute, detailed implementation measures of the resettlement plan will be worked out and institutional arrangement for resettlement implementation will be set up. In order to accomplish appropriate resettlement, a great deal of efforts has been made on resettlers’ participation and consultation in the phase of policy formulation, development, and implementation of resettlement plan. 7.2 Approaches and Measures of Public Participation 7.2.1 Participation Approaches Before launching investigation work, we compile general work outline, hear and accept local government’s opinion for the investigation contents, approaches and requirements, etc. Local government dispatches staff to take part in investigation group and work together. During the course of investigation at large, we invite principals and representatives of township, village and group to participate in investigation work, explain the importance of the project, project benefit, project impact, compensation principle and resettlement schedule, and discuss various rehabilitation options with affected people. In the phase of resettlement planning, the resettlement staff held discussions with all levels of leaders of county, township (town, sub-district), collected their opinions, requirements, and existent problems, and identified resettlement sites. When investigating on the spot, local mass and concerned leaders shall participate in selecting resettlement location. It is proved that the consultation is very important in identifying and selecting resettlement location with long-term potential and establishing scheme that is easy to be accepted by resettlers. 7.2.2 Participation and Consultation Measures Public participation and consultation mainly adopts two ways of consultation meeting and sample survey of resettlers’ desire. Illustrate project building purpose, content and importance to the resettler representatives and discuss the matters concerned the resettlement planning together through these manners. Through investigation, great deal of efforts shall be made on public participation and consultation opinions by design units. On basis of no prejudice to the collectivity planning principle, housing construction scheme and production rehabilitation modes should be consistent with mass opinions so that programming is in reason and resettlers are satisfied. In the stage of resettlement implementation, we still adopt the ways of consultation meeting and

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sample survey of resettlers’ desire, collect resettlers’ information, investigate resettlers’ desire, and perfect further resettlement plan. To ensure that the resettlers and local government in the affected area understand the detailed information of the resettlement and compensation plan of the project, we made propaganda to the resettlers the laws and regulations on national resettlement through public participation (consultation meeting) or local media (such as TV) from the start to the implementation of resettlement plan, so resettlers will know exactly physical indices, the computing method of compensation rates and methods, resettlement measures, appropriation and utilization of the resettlement compensation and allowance, the rights of the resettlers and favorable policies, etc. At the same time, similar information should also be disclosed to the residents in the demolition sites to make them know more about land occupation information, land compensation rates, utilization of fund and resettlement information. We disclose resettlement work to gain the support and confidence from both groups to ensure the success of resettlement work. 7.3 Public Participation in the Process of Resettlement Planning In the stage of preparation and compilation of Resettlement Plan, all levels of local government and resettlers should take part in the following items of work: 1) When surveying the land occupation for the project and demolition impact, Sangzhi County project resettlement Office, resettlement design units, the investigation work was with attendance of village (residential committee) and villagers’ groups and resettler representatives from December 2004 to January 2005. In the process of Resettlement Planning, project resettlement office and resettlement design units go to every village and villagers’ group, adopt the form of holding consultation meeting with attendance of leaders of village group and resettler representatives, or discuss with resettlers randomly, and further solicit their opinions and suggestions on resettlement (including their choice of resettlement location, production rehabilitation measures, house reconstruction and compensation policies for land occupation, which are presented in Table 7.3-1. 2) Sangzhi County resettlement PMO and design office successively organize and hold public meeting with attendance of all levels of local leaders and all classes of affected persons. They introduced the existing national and local policies on resettlement to the affected people, and collected opinions from participants on how to reduce resettlement impact, how to provide rehabilitation, as well as compensation standards for all levels of affected persons, which are presented in Table 7.3-2.

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Table 7.3-1 A Questionnaire of Public Attitudes toward the Project

Participant Time Location Participant Discussion Content Final Results Number Officials of each Project introduction, Supporting project Each Dec.2004 resettlement village, design 50 (28 affected area and construction, agreeing on resettlement unit, resettler’s female) tentative resettlement resettlement plan village representatives scheme tentatively. Planning committee, town Project introduction, Supporting project County, town government, design units, 30(16 affected area and construction, agreeing on Dec.2004 government planning, country and female) tentative resettlement resettlement plan in meeting room resettlers representatives scheme principle. Solicit project opinions Defining every item of County County government, design 42(23 on compensation, compensation standards, Jan.2005 government units, planning, country, female) resettlement plan and resettlement policies and meeting room resettlers representative land occupation land occupation policies.

Table7.3-2 Policies Disclosure Purpose Content Who and with whom When Where 1.Project affected all kinds of Administrative management quantities of physical indices and Survey group consists organ of project area, Project impact in land occupation of project. of county PMO and Dec.2004 township government, village socioeconomic survey 2.Project influence resettlement design committee, the affected socioeconomic condition in the units domestic and non domestic area affected by the project 1.Accept the opinions and suggestions of every relevant Initial consultation for the party of project scheme, compensation policies and County government, demolition and resettlement demolition scheme in the County PMO and Jan.2005 Within the project scope work. preparation of resettlement affected people 2.Resettlers representative plan participate in resettlement and demolition. 1.Hold consultation meeting, concentrate on introducing Further consultation of conditions and go on accepting County project, 6 months compensation policies and opinions and suggestions. demolition office and before Demolition Site rehabilitation plan in 2.Hold demolition meeting, relocated household demolition modifying resettlement plan propaganda resettlement plan, representative compensation rates and answer the resettlers’ inquiry.

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3) In the process of resettlement planning, the project publicizes relevant resettlement information to the residents in relocation sites, through holding the discussions with village officials and resettler representatives or talk with resettlers randomly. Then they can know more about the land occupation, land compensation rates, utilization of fund and resettlement information. Table 7.3-3 Information Disclosure

Disclosure Disclosure Document Disclosure Way Date Location Situation introduction of the project (including land 1. Holding the meeting Dec.2004 Project area occupation) 2. Bulletin column 1. Resettlement Introduction of the project of land occupation and Information manual August 2005 Project area demolition 2. Hold the meeting Disclose the bulletin of resettlement plan Bulletin column August 2005 Project area 1. Bulletin column September Disclose the report of resettlement plan 2. Published in the Project area 2005 newspaper County PMO September Submission County PMO Website 2005 4) From December in 2004 to January in 2005, staff of the resettlement planning team conducted survey of willingness among affected households and populations with the assistance and cooperation of relevant department of project. The results are listed as follows: Know about the project: 98.7 percent of resettlers know about it, and 1.3 percent of resettlers don’t know about it. Know about the channel: From investigators 91.3 percent of resettlers know about it, 52.4 percent of resettlers through villagers in the neighboring village. Supporting attitude :All resettlers support the project. Views on impact: 73.2 percent of resettlers think project affects them severely, 15.8 percent of resettlers think it is not severe, 4.3 percent of resettlers think project affect them a little, 6.7 percent of resettlers think there is no impact. Demolition and resettlement: 34.6 percent of resettlers choose cash compensation as their own compensation methods and would love to buy houses by themselves to live in; 74.4 percent of resettlers choose property-right-exchange mode and hope government arrange unitedly, desire the area of resettlement houses is the same as the former. Economic rehabilitation: 71.5 percent of resettlers require cash compensation, 28.5 percent of resettlers require obtaining compensation through land adjustment.

7.4 Public Participation and Plan in Implementation of Resettlement Plan

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Resettlers should be encouraged to participate in during the whole course of implementation of resettlement planning of the project. 7.4.1 Participation in the Houses Reconstruction and Resettlement 1) Housing Compensation Standards The compensation standards for house will directly affect the interests of the relocated household. Before the houses are demolished, the relevant resettlement authority will consult and sign an agreement with the relocated household on the compensation standards for the houses. The consultation results will be declared publicly before the agreements are signed, so as to put the resettlement under public supervision. 2) Resettlement Locations and Method of House Reconstruction At the RP preparation stage, the relevant authority carried out survey on the resettlement sites and the method of house reconstruction. According to the results of resettlement survey, most of the affected households are willing to have their houses relocated in their own village groups and to rebuild houses by themselves. The local governments at all levels will provide assistance at different stages for house demolition. 3) Demolition of Old Houses All the relocated household will be compensated at replacement value for their old houses. Within a stipulated time limit, the relocated households can, according to their will, demolish their old houses first and then rebuild the new houses or vice-versa. The salvageable materials from the old houses can be used by the relocated households themselves. 7.4.2 Participation in Economic Rehabilitation All the villagers of every village groups should participate in the adjustment and distribution of land and start-up of other agricultural development project, especially for taking care of resettlers who have special requirements to land. 7.4.3 Participation in the Utilization and Management of Land Compensation Land compensation should be paid to collectives of village groups, none unit or individual could withhold and appropriate. After the compensation funds have been given to collectives of village groups, it should be planned as a whole in order to ensure special funds for special purposes. The fund cannot be used until they have been discussed and agreed in meeting attended by all group members, and be supervised by villager representative. 7.4.4 Participation in Project Construction The project construction will cause certain impacts on the local community. In order to ensure the affected persons benefit from the project construction, the local persons will be encouraged to take part in the construction, and favorable conditions will be created to use local materials and local

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labor force. 7.5 Women Participation From the beginning of the project, a great effort has been made on the roles that women play in the project by the implementation institution of the project and local government. Concern women and families where women are the householders and made women give full play to in the process of implementation of resettlement plan. In the affected area, women’s rights, interests and status should be the same as that of men. Women play an important role in economic development activities and housework. Especially in the village, most women stay at home, more men go into the city to find jobs. So besides family responsibility women play an important role in either tilling or non-farming work. So in the area affected by the project, women will pay more attention to the project than men. They not only take part in every stage of resettlement work but also give fineness rein to the direction and method of resettlement. During the course of widespread investigation of this project, all directors of all women unions in affected villages are invited to participate in order to communicate better with affected women. In the small-scale consultation meetings, more than 50 percent of participants are female. Besides supporting the project actively, they showed that they pay more attention to the accuracy of surveyed physical indices, rationality of compensation standard and whether the compensation can reach in time, etc. In the resettlement planning stage, the resettlement design unit actively involved female resettler representatives to discuss together, accept their opinions, requirements and existing problems on production rehabilitation and house relocation. The consultation work has positive effect in reducing women’s worries on income sources, and possible change of traditional production pattern and ensure them to achieve benefits. In addition, at each level of resettlement organizations, at least one-woman cadre will be assigned, which will be instrumental in encouraging women to participate in resettlement planning and implementation. A great deal of effort will be made on the women’s impact in resettlement process, especially the livelihood rehabilitation. In the process of implementation of the project, local government will give priority to women and provide more opportunities in the project construction. 7.6 Harmonization with the Residents in Host Communities The relocation and resettlement of the project is mainly to through purchasing new houses by themselves, which is optional. They can choose place to buy house where they can adapt the new living environment. Certainly, it doesn’t mean that there is no estrangement and conflict between the

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resettlers and former residents. In order to promote good relationships between them, the following work should be done: 1) Before demolition, resettlers and residents in the demolition sites should take part in the resettlement planning. In order to get cooperation, participation and feedback opinions from both resettlers and host communities, in the process of resettlement planning, the PMO will introduce all their rights and schemes they can choose. They can have their own choice from a number of resettlement schemes. They can consult with them directly or define through formal or informal discussions with representatives of resettlers. In most conditions, do some system arrangement such as project official hold regular meetings with local groups so that resettlers and residents in the demolition sites can show their opinions during the whole period of planning and implementation of the project. We must make effort to see that vulnerable populations express their opinions adequately. 2) Try to decrease the impact on the residents in relocation sites. There may be conflict between resettlers and residents in the demolition sites if resettlers need more land, water sources, wood land and society services, or society and houses facilities provided for resettlers succeed the level of residents in relocation sites. So in order to avoid such conflict taking place, the livelihood conditions and society services of the residents in relocation sites should be improved, at least avoid deterioration. Try to provide two groups the perfect education, water supply and medical service and create better social atmosphere for their permeation.

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8. Appeal Procedure 8.1 Possible Complaint and Problems Solving Methods Resettlement Plan makes overall plan for resettlement scheme from the angle of the affected area of the whole project. In the implementation process, resettlers’ complaint may appear because of the change of actual situation and deviation of operation. According to resettlement experiences got from the constructing and constructed projects, the resettlers’ complaint may be the several following kinds: 1) Indices Problem Because of the error in the process of surveying, statistics and computation, the occupied and demolition physical indices may be missed out or input incorrectly, which will have impact on the affected people. When such problems happen, the affected people through village committee can report to Sangzhi County Project Resettlement Office in oral or written form. After processed by Sangzhi County Resettlement Office, the problems should be submitted to County PMO and supervision unit. Under the leadership of County PMO, organize professional personnel to verify on the spot, sign and issue final opinions, ratify and register the missed out or incorrect items and compensate according to the standard. 2) Compensation Standard The small number of resettlers might have concerns on the compensation could not meet rehabilitation needs due to lack clear understanding about national resettlement policies and compensation. Prior to implementation of resettlement project, the design personnel should cooperate with all levels of government and resettlement office, do the technical explanation, introduce national resettlement policies, explain the computation process of compensation standard in order to make resettlers understand that compensation standard is compiled according to the national laws and regulations, which can ensure resettlers move out, live comfortably, develop so as to release their misgiving. 3) Funds In the construction process, owing to slow allocation of resettlement funds, houses building, and economic rehabilitation might be affected. Such questions require administrators of resettlement implementation control funds, schedule and quality to ensure resettlement funds can be used effectively as designated. The resettlement fund allocation should be in accordance with the schedule every month and resettlement project proceed according to the schedule. 8.2 Appeal Channel and Procedure Resettlers enjoy rights and obligations which are endowed by constitution and law. The exiting laws

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and codes of our nation can guarantee resettlers lawful rights are not violated. Appeal until getting it, if the lawful rights and interests are violated. 1) Appeal Channel ─ Local Complaint Office should be set in county (city), city and province of the resettlements to investigate and deal with general appeal question of resettlement; ─ Establish all levels of local resettlement management offices according to the law, every level has the authority to supervise the lower level from province, city to county and can accept appeal cases in terms of resettlement; ─ Independent resettlement monitoring institution works according to relevant national regulations, is responsible for maintaining resettler’s lawful rights and interests. The appeal problems of the violation of the rights of resettlers can also be accepted and reflected; ─ The illegal and orderless case relating to resettlement appeal can be accepted in the law departments such as administrative supervision, auditing, discipline inspection, judiciary and procuratorial department. For the resettlement appeal system of the whole project, see figure 8.2-1 2) Appeal Procedure If any resettler does not agree with the resettlement plan, he/she can reflect to village committee (residential committee), which could consult with local resettlement office directly, or appeal to superior resettlement office in oral or written form. After accepting the appeal, superior resettlement office shall keep records and consult with village committee and the local resettlement office within 10 days. If the contradiction and dispute cannot be resolved with consultation, in accordance with the appeal channel, village committee can appeal to administrative setups step by step such as PMO, Resettlement Management Organ, Resettlement Monitoring Institution, Complaint Office, administrative supervision, disciplinary inspection and procuratorial department according to Administrative Procedure Law of People’s Republic of China. If resettlers are still not satisfactory, appeal to people’s court directly. Resettlement office is responsible for keeping records of all the appeal problems and solving process.

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Law department of PMO of Hunan Province county, city and province

Discipline departments of Office of implementation and county, city and province management of project resettlement of Hunan province

Resettlement monitoring Implementation and management Complaint Office of and evaluation institution office of project and resettlement of county, city and province Sangzhi county

Office of implementation and management of project resettlement of township (town/sub-district)

Village committee or villager’s group

Affected household

Figure 8.2-1 Appeal System Figure of Project Resettlement

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9. Environment Protection and Management 9.1 The Necessity of Environment Protection The environment evaluation of main body of resettlement investment project shall include the affection of resettlement to the environment. The planning of resettlement shall be conducted with environment evaluation. It is necessary to demarcate the line of resettlement area and calculate the increment of population density in unit area. In agricultural project, if the number of the immigrates is larger than the original number of this resettlement area, the aggravating environment problems will come along, such as deforestation, excessive depasturing, the water and soil loss and the pollution of the hygienic conditions etc. Therefore, appropriate eased measures (including the training of immigrates) shall be included in the resettlement planning, besides other resettlement places can also be chosen. And the urban immigrates will cause the relevant problems related to the population density (such as communication capacity, drinking-water source, hygienic system and medical & healthy treatment etc..) Constructive management methods of environment can provide both good opportunities and benefits to resettlement and the residents in the resettlement area. If the resettlement causes an unacceptable consequence, we must find another resettlement site or add the resettlement sites. 9.2 Relocation Cleaning Work All kinds of rubbish, which are produced during the demolition of varied buildings and their auxiliaries within the project range shall all be spoiled in the appointed place by the Bureau of Environmental Hygiene Management of Sangzhi County. The houses and their auxiliaries in the engineering range shall be demolished; their walls shall be torn down and leveled. And the interior pollution source within the project range shall be removed and disinfected. The existing wastewater of industrial enterprises within the project range shall be drained according to specifications. Poisonous slag shall be delivered to the appointed place and buried. And the stock house for stocking the chemical material shall be treated by poison elimination and neutralisation, so that the soil can meet the hygiene standard. 9.3 The Environment Management of the Resettlement Site The environment protection shall be fully considered during the designing and construction of resettlement area, we shall try our best to make the surroundings beautiful and comfortable. 1) Level the land of the cutting faces when excavating the new soil, and set up drainage ditches on the cutting faces when necessary to reduce the water scouring to the cutting faces; the waste area shall be forested as soon as possible so as to avoid the water and soil loss; houses and public facilities shall be constructed with the least damage to the forestry vegetation; and trees

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shall be planted on both sides along the roads.

2) Do a good job of the new houses cleaning：Renovate the environment and spray pesticide

before the resettlers move in, and clean the weed and wastewater container or other things both in front and back of the house after settling in. 3) Choose a healthy and clean water source: Set up a solid reservoir if is took the spring as the water source, such pollution source as toilet, filter pit, manure pit, livestock barn, waste pit, rubbish pit and waste slag pit etc. are not allowed to be set up in the area 20--30m around the water source.

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10. Monitoring and Evaluation 10.1 Internal Monitoring and Examination 10.1.1 Organization of Internal Monitoring In this project, the PMO of Sangzhi County is authorized as internal monitoring agency, a special leader shall be appointed to be responsible for the relevant problems of resettlement. The leader shall be experienced in resettlement and authorized to coordinate with the relevant departments. And staff shall be appointed for the agency, and the staff shall be enough and experienced for resettlement works and social problems, so as to carry out the right responsibilities. 10.1.2 The Object of Internal Monitoring The object of internal monitoring is to maintain the good function of resettlement agencies at all levels during the project implementation process, and coordinate and cooperate with each unit in order to grasp the situation of resettlement implementation timely. 10.1.3 The Content of Internal Monitoring 1) The resettlers’ transfer, allocation of housing locations and housing reconstructions; 2) The implementing schedule and quality of development project of resettlers production; 3) The investigation, coordination and proposals for the main problems existing in resettlement and implementing agencies during the implementing process; 4) The family income rehabilitation after removal; 5) The rehabilitation of easily affected group; 6) The payment and using of compensation and the fund in place; 7) Resettlement participations and consultation in the implementing period ; 8) The resettlers training and effects; 9) Agencies, training, working schedule and efficiency of local resettlement implementing institutions. 10.1.4 The Responsibilities of Internal Monitoring 1) Cooperate with resettlement implementation agencies, departments in charge and external monitoring units. 2) Work out corresponding forms according to monitoring content, and ask the implementing units to fill in and submit the forms to Department in charge and County PMO; 3) The monitoring staff shall check and investigate on the work site once a month, and they shall participate in the acceptance of completion of the resettlement engineering once a month. 4) Supervise the implementation of the annual work plan, fund using ; the annual fund shall be audited by provincial department in charge of resettlement; 5) Submit the working schedule report in July every year;

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6) Report the implementation process to Provincial PMO periodically, and coordinate with the departments in charge according to their requirements timely. 10.2 External Monitoring 10.2.1 Independent Monitoring & Evaluation Agency Retain qualified monitoring unit to be responsible for the monitoring & evaluation works of demolition and compensation. The independent monitoring shall provide total information of implementation to the PMO; at the same time it is also responsible for reporting the implementation of resettlement, existing problems and disposals. As a independent monitoring & evaluation agency, Changsha Xinghuan Water & Electricity Engineering Technology Development Co, Ltd is composed of a high quality group of people, who include 38 professional technicians (3 persons have education level of master, 11 persons are senior engineers, 17 persons are engineers and 10 persons are assistant engineers and technicians) in varied subjects ranging from resettlement planning, resettlement monitoring & evaluation, resettlement supervising, designing for water and soil conservation, environment evaluation, environment protection designing, and environment monitoring & evaluation supervising and so on. They are all experienced in designing and consultation services, as well as resettlement monitoring & evaluation and supervising. The company is authorized as the resettlement monitoring & evaluation agency in national key project of Zaoshi Reservoir project, Hunan municipal development project loaned by WB --- Changzhutan (Changsha City, Zhuzhou City and Xiangtan City) Flood Control and Scenic Road Project; the resettlement supervising & resettlement M&E agency in Hongjiadu hydraulic power station project which is the national key project and the started project of national west-east electricity transmission; the resettlement supervising agency in national key project of Jiangya Reservoir loaned by WB; the resettlement supervising & environment supervising agency in Changjiang River dike strengthening works (Hunan Section) which is the national key project loaned by WB, and the supervising agency in Xiangjiang River Dayuandu Navigation Hydraulic & Power Pivotal Project loaned by WB also, so this company is full of experiences in resettlement supervising, resettlement monitoring & evaluation and carrying the foreign capital project. The PMO of Sangzhi County plans to entrust Changsha Xinghuan Water & Electricity Engineering Technology Development Co, Ltd. as the resettlement monitoring & evaluation agency in this project. Changsha Xinghuan Water & Electricity Engineering Technology Development Co, Ltd. will establish Sangzhi County Urban Flood Control monitoring & evaluation Management to fit the practical requirements and implement all the basic monitoring works under the help of PRR Implementation Management Office, at the same time base on the survey of the affect persons’ living standard. The

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monitoring & evaluation department will be composed of 10 experts and professional technicians (a chief supervisor and 9 staffs) who are experienced in resettlement planning, resettlement implementation management and resettlement monitoring & evaluation. The detailed personnel assignments are showed in the following table 10.2-1. Personnel Table Resettlement Monitoring & Evaluation Table 10.2-1

Majority and No. Name Title/Position Working Years Qualification

Engaged in resettlement for so long time that is full of experiences on resettlement planning, designing, implementation, monitoring & Project Chief evaluation and supervising. Managed and participated in Supervisor resettlement planning, designing, implementation consultation, Chief Engineer Senior monitoring & evaluation and supervising works of many large and Engineer Engaged in middle scale hydro and power projects. As a chief director to do 1 Qin Lin Registered resettlement for the resettlement M& E works of Changzhutan Flood Control and Consultation Engineer 24 years Scenic Road Project which is Hunan municipal development Registered project loaned by WB, the Zaoshi Reservoir project, the Supervising Engineer resettlement supervising and M&E woks of Hongjiadu hydraulic power station project, resettlement supervising works of Jiangya Reservoir project and environment supervising works of Changjiang River dike strengthening work project. Engaged in resettlement for so long time that is full of experiences on resettlement planning, designing, implementation, monitoring & evaluation and supervising. Managed and participated in resettlement planning, designing, implementation consultation, Senior Engineer monitoring & evaluation and supervising works of many large and Registered Engaged in middle scale hydro and power projects. As a chief director to do 2 Zhang Kui Consultation resettlement for the resettlement planning and designing works of Jiangya Engineer 18 years Reservoir project loaned by WB, and participated in the resettlement M&E works of Changzhutan Flood Control and Scenic Road Project which is Hunan municipal development project loaned by WB and Zaoshi Reservoir project, the resettlement supervising and M&E works of Hongjiadu hydraulic power station project which is national key project Engaged in resettlement for so long time that is full of experiences on resettlement planning, designing, monitoring & evaluation and supervising. Managed and participated in resettlement planning, Senior Engineer designing, monitoring & evaluation and supervising works of many Registered Engaged in large and middle scale hydro and power projects. As a chief 3 He Tiesheng Consultation resettlement for director to do the resettlement supervising works of Xiangjiang Engineer 15 years River Dayuandu Navigation Hydraulic & Power Pivotal Project; and

participated in the resettlement M&E works of Changzhutan Flood Control and Scenic Road Project which is Hunan municipal development project loaned by WB and Zaoshi Reservoir project,

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Personnel Table Resettlement Monitoring & Evaluation Table 10.2-1

Majority and No. Name Title/Position Working Years Qualification

the resettlement supervising and M&E works of Hongjiadu hydraulic power station project which is national key project. Engaged in resettlement for so long time that is full of experiences on resettlement planning, designing, monitoring & evaluation and supervising. Managed and participated in resettlement planning, designing, monitoring & evaluation and supervising works of many Senor Engineer Engaged in Ouyang large and middle scale hydro and power projects. As a chief 4 Registered resettlement for Xiongbiao director to do the resettlement supervising works of Changjiang Supervising Engineer 13 years River dike strengthening work project loaned by WB; and participated in the resettlement supervising works of Jiangya Reservoir project loaned by WB, the resettlement M&E works of Zaoshi Reservoir project. Engaged in resettlement for so long time that is full of experiences Engaged in on resettlement planning, designing, monitoring & evaluation and Zhao 5 Senor Engineer resettlement for supervising. Managed and participated in resettlement planning, Weihua 13 years designing, monitoring & evaluation and supervising works of many large and middle scale hydro and power projects. Engaged in resettlement for so long time that is full of experiences Engaged in on resettlement planning, designing, monitoring & evaluation and Fan 6 Engineer resettlement for supervising. Participated in resettlement planning, designing, Jianyang 25 years monitoring & evaluation and supervising works of many large and middle scale hydro and power projects. Engaged in Engaged in resettlement. Participated in resettlement planning, 7 Ren Yu Engineer resettlement for designing, monitoring & evaluation and supervising works of many 8 years large and middle scale hydro and power projects. Engaged in resettlement for so long time that is full of experiences Engaged in on resettlement planning, designing, monitoring & evaluation and 8 Li Jianwu Engineer resettlement for supervising. Participated in resettlement planning, designing, 12 years monitoring & evaluation and supervising works of many large and middle scale hydro and power projects. Engaged in Engaged in resettlement. Participated in resettlement monitoring & Tang 9 Assistant Engineer resettlement for evaluation and supervising works of many large and middle scale Chongliang 5 years hydro and power projects. Engaged in Engaged in resettlement. Participated in resettlement planning, 10 Tao Ziran Assistant Engineer resettlement for designing and monitoring & evaluation of many large and middle 5 years scale hydro and power projects. 10.2.2 The Task of Independent Monitoring & Evaluation The Monitoring & Evaluation of resettlers is an efficient management method in resettlement project management, the objective of independent monitoring & evaluation is to judge if the objective of the resettlement is achieved by means of providing the evaluation of the resettlement works and

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checking all the implementation works with an eye of long term. The independent monitoring & evaluation agency shall acquaint with the resettlement activities, and give evaluation and proposes to the total process of resettlement and the recovery of the resettlers’ living standard, at the same time provide alarm system to engineering management department, provide reflecting canal for resettlers, so as to ensure the planning and implementation of resettlement, accord with the State Laws, Regulations and Rules, and ensure the total project to achieve the expected objective. 10.2.3 The Content of Independent Monitoring & Evaluation The objects of IME unit are implementation effect of country resettlement, the removing and construction of special facilities and infrastructure and resettlement fund input and the using effect. 1) The Monitoring & Evaluation of the resettlement implementation progress The progress of land acquisition and the finalized realization of land for new resettlement host site; The progress of the housing relocation and reconstruction; The progress of resettlers’ transfer; The progress of labors employment; The construction progress of public facilities , infrastructure and special projects 2) The Monitoring & Evaluation of the Payment and Using of Resettlement Funds: The status of the funds being in place; The funds investment and its using; The evaluation of social and economic effect about the funds investment. 3) The Monitoring & Evaluation of resettlement Production Rehabilitation The planning task of resettlement production rehabilitation; The basic production situation before and after resettlement (including the employment); The comparisons of main technical and economic evaluation indexes before and after resettlement, if the evaluation meets the objective, the experience and lessons shall be concluded. 4) The Monitoring & Evaluation of Resettlement Livelihood Relocation The planning task of resettlement livelihood relocation; The housing condition and living surrounding before and after relocation; The form of income and expenditure before and after relocation The comparisons of main livelihood evaluation indexes before and after relocation, evaluate the livelihood quality of the resettlement, and the experience and lessons shall be concluded.

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10.2.4 The Methods of Independent Monitoring& Evaluation Monitoring and evaluation will be performed on the basis of the survey data provided by the survey design institution and resettlement implementation institutions. With an overall understanding of the situation, the evaluation will be performed by sample survey, key informant interviews and rapid rural appraisal techniques. Typical samples, including resettled households, affected villages and Townships will be selected to establish evaluation index system for different types of PAPs. Experienced experts will be invited to decide in a back-to-back way the weights for different indexes. Referring to the updated research output on living quality both in China and abroad, the indexes will be non-dimensionally treated, and the survey results will be analyzed and the computation results evaluated and compared. In addition to typical samples, there will also be focused investigation of vulnerable groups. Generally, the external monitoring and evaluation institution will carry out the following work. 1) The Evaluation of Livelihood Standard The agency of IME shall propose and survey basic livelihood standard before implementation of resettlement, and set up a control group according to the random samples of APs. The living standard survey shall be repeated annually (it shall be conducted twice at least after implementation completion) so as to measure the change of APs’ living standard. This activity is one of the methods of determining the variation of APs’ living standard. The survey table of living standard consists of every index for production and livelihood standard measuring, reflects the changes of production and livelihood by the dynamic variation of one index during the period before and after relocation. Whether the designing of the indices will reflect the variation of production and livelihood standard of resettlers truly will be shown in the base-line survey, at the same time, the designing of the indices will be varied according to the facts so as to ensure the gained information to reflect the amount and quality of resettlement production and livelihood standard clearly and truly. 2) Public Consultation The IME will participate in the public consultations held by village and township periodically, and evaluate the result of APs participation and the participation of APs in resettlement implementation by monitoring these consultations. At the same time, the IME will consult with APs to gain the knowledge, favorites and hopes of their livelihood, and report these discoveries to PMO. These works shall be conducted over and over again in the period of resettlement implementation and after implementation. 3) Complaints The IME will visit the affected places periodically, and adopt the way of holding talks with local resettlers and APs to ask and understand the complaints, the IME will monitor the efficiency of

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disposal of the complains continually, and aiming at the possible changes, the IME will put forward suggestions when necessary to enhance the efficiency of resettlement process. 4) Other Responsibilities The IME shall provide suggestions to PMO in RP preparation and implementation periods; meanwhile, it is also responsible for the monitoring of the following projects: (1) The payment and amount of the compensation; (2) The preparation and sufficiency of relocations; (3) The housing reconstruction; (4) The APs transfer; (5) Training; (6) The support to vulnerable group; (7) The reconstruction of infrastructure and special facilities; (8)The production relocation and rehabilitation; (9) The compensation for property loss; (10) The compensation for working time loss; (11) The transition allowance; (12) The compensation of replacement fee of property loss; (13) Scheduling table of the work above-mentioned (it can be used at anytime); (14) The agency organization of resettlement network; (15) Collectively owed land compensation and the resettlement entitlement matrix; (16) The situation of employment and increased incomes.

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10.2.5 The Procedure of Independent Monitoring & Evaluation Establish a project, and clarify the tasks, content and requirements of monitoring and evaluation;

Work out detailed general outline of monitoring and evaluation;

Study the technical way and working methods of monitoring and The fore works evaluation;

Work out the outline and tables of surveying;

Design typical resettlement trail investigation plan for monitoring system.

Give an extensive investigation for the economic information of resettlers and their villages;

Give a total survey for the schedule of the removing and the situation Monitoring of the fund in place System Collect the information of typical resettlers periodically;

Check the random samples.

Conduct office operation, analysis, calculation, evaluation, and Evaluation make out a conclusion; System Compile monitoring and evaluation report and submit the report to the

County PMO and ADB.

10.2.6 The Period, Frequency and Standard of Monitoring & Evaluation 1) The period of monitoring: The IME working time includes the engineering construction period and the two years after the completion of the engineering. 2) The frequency of monitoring: The frequency shall be reported at least twice a year at peak period and once in other years according to the schedule of resettlement implementation and arrangement of implementation intensity, it shall provide consultation for County PMO. 3) The standard of monitoring: The investigation and sampling standard of IME: 5% of APs in land acquisition and relocation; 20% of affected village in land acquisition and relocation; 20% of enterprises and institutions in land acquisition and relocation. 4) The time of monitoring report: Submit the monitoring report twice at peak period (in July and December every year), and in other years submit it once in July per year.

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10.3 The Evaluation of resettlement After the completion of the project, on the basis of monitoring and evaluation, conduct an evaluation for the resettlement by means of evaluation theories and methods. The content mainly includes the successful experience and the lessons in housing relocation, enterprises and institutions and land acquisition etc., the evaluation will provide referential experience for future resettlement works. After resettlement, the evaluation unit is responsible for the work of compiling evaluation outline, setting up the evaluation index system, conducting the analysis and survey on social economy, compiling The Evaluation Report after the Resettlement Implementation of Sangzhi County Urban Flood Control Project, which will be submitted to Provincial PMO and ADB.

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11. Resettlement Budget 11.1 Compilation Basis and Principle of Cost Estimate 11.1.1 Main Bases 1) Land Administration Law of the People’s Republic of China (1999); 2) Methods of Hunan Province for Implementing the Land Administration Law of the People’s Republic of China (2000); 3) Houses Demolition Administration Regulations of the PRC, starting implementation since November 1, 2001; 4) Methods of Hunan Province for Implementing the Urban Houses Demolition Administration Regulations, starting implementation since September, 1, 2002 5) Provisional Regulations on Cultivated Land Acquisition Tax of the PRC; 6) Methods of Hunan Province for Implementing the Cultivated Land Acquisition Tax (Revision); 7) The Notice by Hunan Provincial Commodity Price Bureau and Financial Department about Reissuing Administration Institutional Charging Items and Standards of Hunan Province National Land Resource System (XJF[2003] NO.42); 8) Regulations about Land Acquisition and Resettlement for Hydraulic and Hydroelectric Engineering (SD290--2003); 9) Relative procedures and specifications of each professional department; 10) Investigation of physical materials index affected by the project and result of resettlement plan. 11.1.2 Compilation Principle 1) For projects of economic rehabilitation, demolition resettlement, special facilities demolition and rebuilding which are planned and designed according to the relative national policies, procedures and specifications, calculate the investment according to the design scheme and corresponding work quantity (or physical materials amount). 2) Standards for land compensation fee and resettlement subsidies, and young crops compensation fee shall be calculated and determined according to relative regulations in Methods of Hunan Province for Implementing the Land Administration Law of the People’s Republic of China; 3) Houses compensation standard shall be analyzed and determined according to typical unit price of the houses in the area affected by the project; compensation standards for auxiliary facilities, scattered trees, and demolition subsidies shall be determined comprehensively according to the compensation standards of typical design or similar project. 4) Compensation fee of the special facilities shall be determined on the basis of “original scale, original

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standard and original function” according to the actual rehabilitation situation; 11.2 Resettlement Compensation 11.2.1 Land Compensation 1) Project Permanent Land Acquisition The land compensation, resettlement subsidies and production compensation is calculated as RMB 0.8318 million yuan according to the acquired land quantity of various kinds and compensation standards adopted for the project. 2) Project Temporary Land Acquisition The temporary land use in this project is 127.38 mu, in which there are dry farmland of 12.74 mu, shrubbery land of 25.48 mu and wasteland of 89.16 mu. Calculated according to the compensation standards of various temporary land uses, the temporary compensation fee of this project is RMB 82,900 yuan. 11.2.2 Compensation for Houses and Auxiliary Facilities The compensation for houses and auxiliary facilities in this project mainly include the compensation fees for residential houses, non-residential houses and the auxiliary facilities. The compensation fees for the houses and auxiliary buildings are calculated as RMB 9.9846 million yuan according to the demolition physical materials index and standards of compensation and subsidy. 11.2.3 Compensation Fee for Tombs The total of the compensation fee for tombs in the project is RMB 600 yuan. 11.2.4 Compensation for Infrastructure The compensation for infrastructure in this project mainly includes fees for the site field leveling, water drinking, illuminating in the centralized resettlement spot and scattered resettlement spots and infrastructure such as roads and so on. The demolition and resettlement is planned to be 176 persons of 37 families. The investment is totally calculated to be RMB 0.264 million yuan according to the compensation standard of 1500 yuan per person. 11.2.5 Demolition Transportation Fee The transportation fee of this project mainly includes transportation fee, livelihood subsidies, temporary residential subsidies and secondary transportation fee, etc. The investment is totally calculated to be RMB 0.1056 million yuan, according to the required demolition and resettlement of 176 persons of 37 families. 11.2.6 Compensation for Enterprises and Institutions The houses demolition compensation for enterprises and institutions is counted in the compensation part for houses and auxiliary buildings. Compensation for enterprises mainly includes demolition subsidies, production equipment compensation and loss of production and business stop, etc., RMB

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0.6363 million yuan. Among them the demolition subsidies are calculated to be RMB 0.240 million yuan, according to the house area of required demolition by and 25 yuan/m2; the production equipment compensation is calculated as 10% of the replacement value for the equipment of required demolition (counted as RMB 0.56 million yuan through investigation), the disassembling, installing and adjusting fee is RMB 56,000 yuan; the loss of production and business stop is RMB 0.3403 million yuan (business stop period is calculated as 6 months). 11.2.7 Compensation for Individuals Engaged in Small-scale Business The demolition compensation for small shop is counted in the compensation part for houses and auxiliary buildings. The loss compensation for business stop is calculated as RMB 23,600 yuan according to the booth business area of required demolition by 15 yuan/m2 per month (business stop period is calculated as 3 months); for the comprehensive transportation and incidental expenses, the compensation investment is calculated as RMB 400 yuan according to 200 yuan/ family. The total of the compensation for individuals engaged in small-scale business is RMB 24,000 yuan. 11.2.8 Subsidies for Vulnerable Group The subsidies for vulnerable group in this project is calculated as 1% of the land acquisition compensation and the compensation for houses and auxiliary facilities, the investment is RMB 0.1090 million yuan, and mainly used for offering various kinds of help or livelihood support fees for the vulnerable group affected by the project. 11.2.9 Resettlement Compensation Investment The resettlement compensation investment of this project is the sum of Item 11.2.1~Item 11.2.8, totally calculated as RMB 12.0388 million yuan. See Table 11.2-1 for details.

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Budget for Resettlement Compensation Investment in Sangzhi County Urban Flood Control Project Table 11.2-1 Unit Price Investment Item Sub-item Sub-sub-item Unit Quantity Remarks (Yuan) (10,000 Yuan) I. Land Compensation 91.47 (I). Permanent Land Acquisition 67.57 83.18 1. Collective Land mu 54.53 83.18 1.1 Cultivated Land mu 52.88 82.44 Dry Farmland mu 0.57 7474 0.43 Market Vegetable mu 52.31 15678 82.01 Plot 1.2 Flood Plain mu 1.65 4485 0.74 2. State-owned Land 13.04 2.1 Residential House Considered in the compensation mu 11.32 Land unit price for houses 2.2 Land for Other Use mu 1.72 Assigned for free (II). Temporary Land Use 127.38 8.29 Including cultivated land Dry Farmland mu 12.74 4918 6.27 reclamation fee Shrubbery Land mu 25.48 792 2.02 Wasteland mu 89.16 No compensation II. Compensation for Houses and 998.46 Auxiliary Facilities (I). Residential Houses m2 630.78 1.Rural Residential Houses m2 16860.04 630.78 Brick Concrete m2 15508.53 384 595.53

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Budget for Resettlement Compensation Investment in Sangzhi County Urban Flood Control Project Table 11.2-1 Unit Price Investment Item Sub-item Sub-sub-item Unit Quantity Remarks (Yuan) (10,000 Yuan) Brick Wood m2 1044.26 314 32.79 Simple Structure m2 307.25 80 2.46 (II). Non-residential Houses m2 9599.80 363.16 Brick Concrete m2 9030.55 384 346.77 Brick Wood m2 505.75 314 15.88 Simple Structure m2 63.50 80 0.51 (III). Auxiliary Facilities 4.52 Cement Sunny Ground m2 1747.22 15 2.62 Wall m2 283.96 18 0.51 Cement Pond m3 9.81 80 0.08 Telephone Piece 24 200 0.48 Air-conditioner Piece 16 200 0.32 CATV Household 34 150 0.51 III. Tombs Family 2 300 0.06 IV. Compensation for 26.4 Infrastructure Site leveling, drinking and Person 176 1500 26.40 illuminating V. Demolition Transportation Fee 10.56 1. Material Demolition Fee Person 176 100 1.76 2. Livelihood Subsidies Person 176 100 1.76 3. Temporary Residential Person 176 300 5.28

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Budget for Resettlement Compensation Investment in Sangzhi County Urban Flood Control Project Table 11.2-1 Unit Price Investment Item Sub-item Sub-sub-item Unit Quantity Remarks (Yuan) (10,000 Yuan) Subsidies 4. Secondary Demolition Fee Person 176 100 1.76 VI. Compensation for Enterprises 63.63 and Institutions 1. Demolition Subsidies m2 9599.8 25 24.00 2. Equipment Compensation Calculated as 10% of the 5.6 Fee equipment replacement value 3. Loss of Production and 34.03 Business Stop 3.1 Brick Concrete m2·month 9030.55 6×6 32.51 Calculated as production and 3.2 Brick Wood m2·month 505.75 5×6 1.52 business stop of 6 months VII. Compensation for Individuals 2.40 Engaged in Small-scale Business Calculated as production and 1. Business Stop Loss m2·month 524 15×3 2.36 business stop of 3 months 2.Comprehensive Transportation Incidental Family 2 200 0.04 Expenses Calculated as 1% of the land acquisition compensation and VIII. Vulnerable Group Subsidies 10.90 compensation for houses and auxiliary facilities Total 1203.88

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11.3 Compensation for Special Facilities Because the relative professional departments of the special facilities affected by this project have not put forward the detailed resettlement plan at present, the rebuilding compensation investment in this budget is calculated according to the quantities actually affected by the project. 1) Compensation for traffic facilities: Since it has been considered in the project design, it will not be counted here. 2) Compensation for power transmission and transformation: Mainly including rebuilding compensation fee for the pole removing and line changing of 10KV high voltage line and 380V low voltage line. The investment is calculated to be RMB 69,300 yuan in total. 3) Compensation for post facilities: The line cable specification of the post is HYA3-0.5, the investment is calculated to be RMB 7500 yuan in total according to RMB 50,000 yuan/km. 4) Compensation for hydraulic facilities: The compensation investment of the electrical pumping dock is calculated to be RMB 17,000 yuan according to 1000 yuan/kw. The compensation investment of the above-mentioned special facilities is calculated to be RMB 93,800 yuan in total. See Table 11.3-1 for details. Table 11.3-1 Compensation Investment Budget for Special Facilities Affected by Sangzhi County Urban Flood Control Project

Investment Unit Price Item Unit Quantity (10,000 Remarks (Yuan) Yuan) 1. Traffic Facilities 0.00 Listed in the project 1. Hasty road km 0.196 0.00 investment II. Power Facilities 6.93 1. High Voltage km 50000 1 5.00 Line 2. Low Voltage km 27500 0.7 1.93 Line III. Post Line km 50000 0.15 0.75 IV. Hydraulic Facilities 1.70 1. Electrical kw 1000 17 1.70 Pumping Dock Total 9.38

11.4 Other Costs 1) Cost for survey, design and scientific research: The cost of required survey, layout, design and scientific research for land acquisition and resettlement design, is calculated to be RMB 0.3640

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million yuan as 3% of the sum of the cost for resettlement compensation and compensation investment for special facilities. 2) Implementation Management Cost: Including the routine management cost for resettlement implementation institution, such as salary, official business and evection, etc., it is calculated to be RMB 0.3640 million yuan as 3% of the sum of cost for resettlement compensation and compensation investment for special facilities. 3) Implementation Institution Preliminary Cost: Including cost for official rooms, vehicles and equipment purchases and other required costs for the starting and operation of the resettlement implementation institution, which is calculated to be RMB 0.3166 million yuan; 4) Technical Training Cost: Required cost for enhancing the production skills and cultural accomplishment of the rural resettlers and the management level of resettler cadres. The cost is calculated to be RMB 60,200 yuan as 0.5% of resettlement compensation investment; 5) Supervision and M&E Cost: Cost for resettlement comprehensive supervision, monitoring and evaluation. The cost is calculated to be RMB 0.1820 million yuan as 1.5% of the sum of the cost for rural resettlement compensation and compensation investment for special facilities. The above-mentioned other costs are calculated to be RMB 1.2868 million yuan in total. 11.5 Basic Contingency Fee The basic contingency fee is calculated to be RMB 1.3419 million yuan as 10% of the investment sum of resettlement compensation, special facilities compensation and other costs. 11.6 Relative Tax 1) Cultivated land acquisition tax: According to the statistical material of Sangzhi County in 2003, the cultivated land area per person of agricultural population in the project area is 0.62 mu. According to Methods of Hunan Province for Implementing the Cultivated Land Acquisition Tax, for areas where the cultivated land area per person is 0.5 mu~ 1 mu, the tax standard for paddy field, dry farmland and garden field is 4~8 yuan/ m2, 4 yuan/m2 is adopted here. For the one who occupies the urban suburb professional vegetable plot and intensive fishing pond for house construction, or undertakes other illegal agricultural construction, the cultivated land acquisition tax will be adopted 10 yuan/ m2. The cultivated land acquisition tax is totally calculated to be RMB 0.3504 million yuan in this project. 2) Cultivation Fee for Cultivated Land: According to the XJF [2003] NO.42 Document issued by Hunan Provincial Commodity Bureau and Finance Department, Sangzhi County belongs to Grade IV Area, and the cultivation fee standard for cultivated land is: 8,000 yuan/mu for paddy field and 5,000 yuan/mu for dry farmland. According to the relative regulations in documents of Ministry of National

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Land Resources, State Economic and Trade Committee and Ministry of Water Resources The Notice about Relative Problems of Land Acquisition for Hydraulic and Hydroelectric Project Engineering (GTZF [2001] NO.355), for the cultivated land acquisition of project which is mainly for flood control, water supply (including irrigation) profits, the cultivation fee can be charged as 70% of the floor level of cultivation fee of cultivated land regulated by people’s government of each province. Hereby, the cultivation fee standard for cultivated land is determined as 5600 yuan/mu for paddy field and 3500 yuan/mu for dry farmland. The cultivation fee for cultivated land is calculated to be RMB 0.1863 million yuan in total. The above-mentioned tax is calculated to be RMB 0.5367 million yuan in total. See Table 11.6-1 for details. Table 11.6-1 Calculation Table for Relative Tax of Land Acquisition in Sangzhi County Urban Flood Control Project

Item Unit Unit Price (Yuan) Quantity Amount (10,000 Yuan) Remarks I. Cultivated Land Acquisition Tax 35.04 1. Cultivated Land 35.04 1.1Dry Farmland m2 4 380.19 0.15 1.2 Market Vegetable Plot m2 10 34890.77 34.89 II. Cultivation Fee for Cultivated Land 18.63 1Dry Farmland mu 5600 0.57 0.32 Grade III Area 2 Market Vegetable Plot mu 3500 52.31 18.31 Total 53.67

11.7 Budget for Total Investment The total budget of compensation investment for land acquisition, demolition and resettlement in this project is RMB 15.2979 million yuan (the total investment is RMB 14.7612 million yuan excluding the relative tax) and will be entirely listed into the total budget of the project and borne by the construction unit of the project. See Table 11.7-1 for the total budget of compensation investment for details. Table 11.7-1 Total Budget Table of Compensation Investment for Land Acquisition Demolition in Sangzhi County Urban Flood Control Project

Investment (10,000 Item Sub-item Remarks Yuan) I. Resettlement Compensation 1203.88 Fee 1. Land Compensation 91.47 2. Compensation for Houses and Auxiliary 998.46 Facilities

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Table 11.7-1 Total Budget Table of Compensation Investment for Land Acquisition Demolition in Sangzhi County Urban Flood Control Project

Investment (10,000 Item Sub-item Remarks Yuan) 3. Compensation for Tombs 0.06 4. Compensation for Infrastructure 26.40 5.Demolition Transportation Fee 10.56 6. Compensation for Enterprises and 63.63 Institutions 7. Compensation for Self-employed 2.40 Industrial Enterprises 8. Subsidies for Vulnerable Group 10.90 II. Compensation for Special 9.38 Facilities Listed in the project 1. Compensation for Traffic Facilities investment 2 Compensation for Power Facilities 6.93 3. Compensation for Post Facilities 0.75 4. Compensation for Hydraulic Facilities 1.70 III. Other Costs 128.68 1. Cost for Survey, Design and Scientific 3% of the sum of Item I 36.40 Research and II 3% of the sum of Item I 2. Implementation Management Cost 36.40 and II 3. Implementation Institution Preliminary 31.66 Cost 4. Technical Training Cost 6.02 0.5% of Item I 1.5% of the sum of Item I 5. M&E Cost 18.20 and II 10% of the sum of Item I IV. Basic Contingency Fee 134.19 to Item III V. Total Investment (excluding 1476.12 tax) VI. Relative Tax 53.67 1. Cultivated Land Occupancy Tax 35.04 2. Cultivation Fee for Cultivated Land 18.63 VII. Total Investment 1529.79 (including tax)

11.8 Balance between Land Compensation Fee and Economic Rehabilitation Investment According to the relative resettlement article: “ The land compensation and resettlement subsidies, is used by the institutions with land acquired for production rehabilitation and development, and

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arranging the employment for the surplus labor forces caused by the land acquisition and livelihood subsidies for people incapable for work. It can also be contracted to the county (city) and be unifiedly allocated by the county (city) for land development, production and livelihood resettlement for resettlers. But these special funds must be specially used. The funds shall not be privately shared or used for other purposes.” In case that the land compensation and resettlement subsidies can not meet the requirements of production and resettlement, the resettlement subsidies can be increased according to the situation. Therefore, the land compensation fee and resettlement subsidies, as the only fund resource of the resettlers’ production and resettlement, must be equal to or a little more than the total investment of economic rehabilitation. According to the economic rehabilitation plan, the required economic rehabilitation population in this project is 56. The investment for production development project is RMB 0.5248 million yuan in total (See 5.3-12 for details). The permanent collective land acquisition compensation fee in the project area is RMB 0.5401 million yuan in total, RMB 15,300 yuan more than the required investment for economic rehabilitation of agricultural population, a little more than required investment for other economic rehabilitation. This indicates that the land compensation standard is considerably suitable, and can meet the fund requirement of economic rehabilitation. The fund margins can be unitedly used for continuous development by each village group, such as launching village-owned enterprises, land resources development and used as fund investment for other projects as improving low-yield farmland and converting dry farmland to paddy fields, etc., to ensure that the livelihood level of the resettlers reaches or exceeds their previous standard. 11.9 Funds Flow All the compensation funds for land acquisition and demolishment will come from the counterpart funds of local governments. The compensation funds shall be paid and used according to the compensation policies and standards determined in the resettlement activity plan. The funds shall be appropriated under the supervision and management of the interior monitoring institution and checked by the exterior monitoring institution. Sangzhi County Project Management Office signs Contract Agreement of Resettlement Task Investment in Sangzhi County Urban Flood Control Project with the County Project Resettlement Office, and pays the County Resettlement Office in terms according to resettlement implementation progress. The County Project Resettlement Office then appropriates in classifications according to construction projects: 1) Land Acquisition: The County Project Resettlement Office signs Agreement of Land Acquisition Compensation and Attachments on Field with townships (management section) and villager committees affected by the project. The payment of compensation funds shall be paid to the

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township (management section) resettlement office by the County Project Resettlement Office through banks according to the compensation items, quantity, time and expenses regulated in Agreement of Land Acquisition Compensation. Then the township resettlement office pays the villager committee or villager’s group. The relative villager committee uses the land compensation fee for developing the production. The resettlement subsidies shall be paid to the rural collectivity. Then the rural collectivity will pay the resettlement subsidies to institutions or individuals according to resettlement scheme. Compensation fee for the attachments on field will be paid to the owner through the villager committee. 2) Residential Houses: The County Project Resettlement Office signs Agreement of Demolition Compensation for Project Resettlement Families with the involved and affected demolition resettlement families according to the contents of basic situation, compensation amount, subsidies, payment method, time limit and demolition time limit, etc. of the affected houses. The compensation fund is directly appropriated to the affected families by the County Project Resettlement Office. 3) Non-residential Houses: The County Project Resettlement Office signs agreements with the relocatee on the contents of compensation standard, resettlement mode and demolition time limit, etc. The compensation fund is appropriated directly to the relocatee by the County Project Resettlement Office. 4) Compensation Fee for Public Infrastructure: The County Project Resettlement Office signs Agreement of Compensation for Public Infrastructure with the township (management section), villager committee or Contract of Resettlement Project Construction with the construction institution directly. The compensation fund shall be paid to the relative townships, villager’s groups and contractor institutions according to the contract agreement. 5) Special Facilities: The County Project Resettlement Office signs Agreement of Compensation for Rehabilitation and Rebuilding of Special Facilities with each special department. Compensation investment for rehabilitation and rebuilding of the special facilities is paid to each functional department by the County Project Resettlement Office through banks. See Fig. 11.9-1 for Funds Flow Chart of Project Resettlement Compensation. 11.10 Funds Management and Audit Project demolition department submits the demolition budget to ADB Loans Project Management Office according to the annual project demolition progress and funds plan. ADB Loans Project Management Office will appropriate funds for each item after approval. In the progress of funds using, the project demolition department shall strictly comply with Regulations for State Funds Management and Audit. The funds operation shall be checked grade by grade, that is checked by Principle of Demolition Department- Principle of ADB Loans Project Management Office- Financial

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Department of ADB Loans Project Management Office. Financial Department appropriates the funds to Demolition Department according to the checked budget and the principal’s written instruction, after determining that it is in accordance with the standard in this report and the data are correct. ADB Loans Project Management Office will process the appraisal and audit in the mid-term of this project, completely examine the use situation of the resettlement funds and adjust the budget according to the actual situation.

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Land Compensation County PMO County Project Township (management Villager Committee or Villager’s Group Resettlement Office section) Resettlement Office

Resettlement Subsidies County PMO County Project Township (management Villager Committee or Villager’s Group Resettlement Office section) Resettlement Office

Young Crops County PMO County Project Township (management Villager Resettlement Compensation Resettlement Office section) Resettlement Office Committee Family

Compensation for Residenti County Project Township (management Relocatee Houses and Auxiliary County PMO Resettlement Office section) Resettlement Office Family Facilities

Demolition Subsidies County PMO County Project Township (management Relocatee families or relative institutions Resettlement Office section) Resettlement Office

Compensation for County Project Township (management

Compensation for Resettlement forResettlement Compensation County PMO Owner Scattered Trees Resettlement Office section) Resettlement Office

Compensation for County PMO County Project Construction Unit Infrastructure Resettlement Office

Non-residential Production County PMO County Project Relocatee and Business Stop Loss Resettlement Office

Non-residential Demolition County PMO County Project Relocatee Subsidies Resettlement Office

Compensation for Special County PMO County Project Principal Department for Construction Facilities Resettlement Office Special Facilities Unit

Subsidies for Vulnerable County Project Township (management Vulnerable Group County PMO Resettlement Office section) Resettlement Office Group

Plan and Design Cost County PMO Resettlement Design Institution

M&E Cost County PMO M&E Institution

Technical Training Cost County PMO Technical Training Institution

Implementation County PMO Resettlement Implementation Institution of each grade Management Cost

Fig. 11.9-1 Funds Flow Figure of Resettlement Compensation in Sangzhi County Urban Flood Control Project

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12. Resettlement Progress Arrangement The schedule of resettlement progress arrangement should be worked out in terms of the construction content, works quantity, time limit, resettlement objects and modes, and other factors. 12.1 Principles of Resettlement Progress Arrangement 1) Land acquisition and resettlement activities, in accordance with the characteristics of agricultural production, should be arranged in slack season to reduce impact on agricultural production. 2) Dismounting of houses would be carried out step by step, but should be finished before the commencement of each contract section. 3) Notify emigrants of houses demolition at least 3 mouths ahead of time, and give them at least 2 months to construct new houses from the notified date to the ultimate time limit of dismounting. Those affected people may live in their former houses until completion of the new ones. 4) House constructing time should be arranged according to schedule of project, and could be prolonged if needed. 5) To reduce impact on emigrants’ livelihood, the public and infrastructure facilities should be completed at least 20 days before constructing houses for resettlement. 6) To lessen the effect on reconstructed special facilities, its reconstruction should be arranged in phase of completing each contract section. 7) Emigrants training should be carried out four times in slack season with each time lasting 5 days, and start respectively when agricultural economic rehabilitation goes through its 1/3 course and at its ending. 8) Demolition and reestablishment of enterprises and relevant institutions should be arranged by their functional departments in accordance with project schedule. 12.2 Progress Plan 12.2.1 Resettlement Implementation Progress Plan According to the Construction Organization Design of Project, only when land acquisition and demolition are completed ahead of time can the execution of project be ensured as scheduled. The resettlement implementation progress plan is shown in appendix Table 2. 12.2.2 Annual Funds Use Plan The annual investment plan of each resettlement compensation expenditure is worked out on the basis of resettlement progress arrangement. The annual funds use plan is established as follows:

for the first year, RMB￥2.0829 million; for the second year, RMB￥10.6395 million and for the third

year, RMB￥2.5756 million, accounting for 13.61%, 69.55% and 16.84% of the total investment

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respectively. For more details, see Table 12.2-1. Table 12.2-1 Step-by-Step Investment Plan Table

Total 1st 2nd Year 3rd Year Investment Item Sub-item Year(RMB (RMB in (RMB in (RMB in in Million) Million) Million) Million) 1.Resettlement compensation 12.0388 1.09 8.769 2.1798 expenditure 1.Land compensation 0.9147 0.0915 0.6403 0.1829 2.Houses and accessorial facilities compensation 9.9846 0.9985 6.9892 1.9969 3. Tomb compensation 0.0006 0.0006 4. Infrastructure facilities compensation 0.264 0.264 5. Conveying freight 0.1056 0.1056 6.Enterprises & relevant institutions compensation 0.6363 0.6363 7. Compensation for individuals engaged in small business 0.024 0.024 8.Vulnerable group compensation 0.109 0.109 2.Special facilities 0.0938 0.0938 0 compensation 1.Transportation facilities compensation 0 0 2. Electric power facilities compensation 0.0693 0.0693 3. Post facilities compensation 0.0075 0.0075 4. Hydraulic facilities compensation 0.017 0.017 3.Other 1.2868 0.322 0.8374 0.1274 charges 1. Reconnaissance, design & research charge 0.364 0.0728 0.2548 0.0364 2.Management charge 0.364 0.0728 0.2548 0.0364 3.Charge for executive organs running 0.3166 0.1583 0.1583 4.Technical training charge 0.0602 0.0181 0.0421 5.Charge for monitoring, measuring and evaluation 0.182 0.1274 0.0546 4.Basic 1.3419 0.1342 0.9393 0.2684 reserve charge 5.Total investment 14.7612 1.5462 10.6395 2.5756 (excluding tax) 6.Relevant tax 0.5367 0.5367 1.Tax for field occupation 0.3504 0.3504 2.Fee for field reclamation 0.1863 0.1863 7.Total investment 15.2979 2.0829 10.6395 2.5756 (including tax)

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Appendix 1: Resettlement Information Manual

1. Project Background The areas in Hunan Province, which are brought into this urban flood control project, are limited to the cities above county grade in hilly sections with relatively serious flood disaster. All the cities are considered as the areas with developed economy, dense population and centralized wealth. If the cities are submerged, the loss will be great, and the economic development will be supportless. At present, the urban flood control standard in the project area is low. Flood disaster happens in successive years, seriously restricts the urban economic development and affects the live and property safety of urban people. For Sangzhi County, as the sub-project city of the urban flood control project under ADB loans, its flood and waterlogging control capacity can be absolutely improved through the project implementation. The flood control standard will be enhanced from the current 2-year occurrence to 20-year occurrence; and the waterlogging control will be enhanced from the current 2-year occurrence to 10-year occurrence. That can greatly reduce the urban flood control burden of Sangzhi County and benefit the normal social development. The main engineering measures involved in land acquisition and relocation of Sangzhi County Urban Flood Control Project are: reinforcing and new-building of embankment, re-new, reconstruction and new-building of culvert sluices and power allocation station, and there also is temporary land acquisition as project construction site and borrow area, etc. The NoRevert areas in the project land acquisition, with the residents’ production and living seriously affected by the project construction, are considered as the affected range of the project land acquisition and relocation. The final land acquisition and relocation range may be partially adjusted with the deepening of the designed depth. 2. Project Affected Area and Quantity According to the investigation, the project land acquisition and relocation affect 24 villager’s groups in 11 villages (residential committees). In these areas, there are various project land acquisition of 67.57 mu (including 52.88mu cultivated lands, accounting for 78.3%); the temporary land acquisition being 127.38mu (including 12.74mu dry farmlands, 25.48mu shrubbery forestlands and 89.16mu wastelands); project relocated residential and non-residential houses of 26459.84m2 (including brick concrete structure of 24539.08m2, occupying 92.74%, brick wood structure of 1550.01m2, occupying 5.86%, simple structure of 370.75m2, occupying 1.40%). The number of resettlement families affected by relocation is 43 households.

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3. Resettlement Plan The project resettlement plan is organized and guided by Key Project Office of Water Resources Department of Hunan Province and the local People’s Governments of various grades; and is compiled by the technical assistance professionals according to particular affection investigation, on the basis of sufficiently soliciting the villagers’ opinions. To execute the principle of “Resettlement for Development”, adopt the rehabilitation strategy of: “basing on the land and agriculture” for the resettlement plan. Through re-adjusting and developing the big-shed vegetable, and the secondary and the tertiary industries such as processing and transportation industries, the resettlement plan offers the production basis for short-term livelihood insurance and long-term developing potential, which will combine the resettlement, rehabilitation and the regional economic development brought by this project, and make the resettlers’ livelihood reach or surpass the living level before resettlement. 4. Policy Bases and Objectives of Resettlement Plan 4.1 Policy Bases a) Land Administration Law of the People’s Republic of China (NO.8 Decree by Chairman of the PRC issued on August 29, 1998, starting implementation since January 1, 1999) b) Implementation Regulations for the Land Administration Law of the People’s Republic of China (NO. 256 Decree by the State Council of the PRC issued on December 27, 1998, starting implementation since January 1, 1999) c) Houses Demolition Administration Regulations of the PRC (NO. 305 Decree by the State Council of the PRC issued on June 13, 2001, starting implementation since November 1, 2001) d) The Decision by the State Council about Deepening Reformation and Strictly Enforcing Land Administration (The GF [2004] No.28 issued by the State Council on October 21, 2004) e) The Directive about Perfecting the Compensation Resettlement System for Land Requisition (The GTZF [2004] No.23 issued on November 3, 2004) f) Methods of Hunan Province for Implementing the Land Administration Law of the People’s Republic of China (approved by 14th congress of the Standing Committee of 9th People's Congress Council of Hunan Province on March 31, 2000) g) Methods of Hunan Province for Implementing the Urban Houses Demolition Administration Regulations (NO. 157 Decree by the People’s Government of Hunan Province issued on July 12, 2002, starting implementation since September 1, 2002) h) Resettlement Policy by ADB: Resettlement Manual—Feasible Practice Guide 4.2 Policy Objectives 1) Avoid or reduce to the minimum the tangible material quantity of land acquisition relocation and

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resettlement by adopting measures of engineering, technique and economy, etc.; when the land acquisition is unavoidable, effective measures shall be adopted to best reduce the affection caused by the land acquisition relocation to the production and livelihood of local residents. 2) In the preparation period of this project, process the social economic investigation and compile corresponding resettlement plan; 3) Resettlement shall be on the basis of relocation tangible material indexes and compensation standards, to aim at improving or at least recovering the original living level of the resettlers; 4) Advocate resettlement of development. The rural resettlement shall adopt the policy of: making the land as the basis, depending on the second and third industries of the local area to widen the employment access; 5) Encourage the affected personnel to participate in the resettlement plan; 6) The resettlers shall be considered in priority to be resettled in the original community; 7) The resettlers and original residents in the resettlement area will get benefit from the project. 4.3 Compensation Standards See Table 1 for compensation standards for various affections in Sangzhi County urban flood control project.

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Table 1 Compensation Standards for Various Affection in Sangzhi County Urban Flood Control Project

Affection Compensation Standard (Yuan/Unit) Affected Object Types Compensation Item Standard (Amplitude) Brick concrete structure 384 Yuan/m2 (340~420) Urban Residential Brick wood structure 314 Yuan /m2 (270~330) Houses Simple structure 80 Yuan /m2 Bounding wall 18 Yuan /m2 Cement pond 80 Yuan /m3 Cement sunny field 15 Yuan /m2 Residential Auxiliary Facilities Telephone resettlement 200 Yuan /Piece Houses and Property Owner Auxiliary Air-conditioner resettlement 200 Yuan /Piece

Facilities CA TV resettlement 150 Yuan /Family Compensation for Site leveling, drinking and illuminating 1500 Yuan /Person Infrastructure Conveying fee 100 Yuan / Person Demolition Livelihood subsidies 100 Yuan / Person Subsidies Temporary residence subsidies 300 Yuan / Person Secondary conveying fee 100 Yuan / Person The compensation unit prices of houses of various structures are calculated according to compensation standards for township residential houses and auxiliary facilities.

Non-residential Enterprises and Property Conveying Subsidy 25 Yuan/m2 Houses and Institutions Owner Auxiliary Brick concrete structure 6 Yuan /m2·month Business Loss Fee Facilities Brick wood structure 5 Yuan /m2·month Individuals engaged in Property Business Loss Fee 15 Yuan /m2·month small-scale business Owner Comprehensive Transportation Incidental Fee 200 Yuan /Household Residential lands 41354 Yuan/mu Stated-owned Land Permanent Land for Other Uses Acquired for free Land Paddy Field 10678 Yuan / mu Acquisition Dry Farmland 7474 Yuan / mu Collective Land Vegetable Field 15678 Yuan / mu Hirst land 4485 Yuan / mu Dry farmland 4918 Temporary land Contractor Timber forestland 792 acquisition Wasteland No compensation Simple highway Listed in project investment Special 10KV High Voltage Line 50000 Yuan /km Property Owner Facilities 380V Low Voltage Line 27500 Yuan /km

Posts Line 50000 Yuan /km Electric Pumping Station 1000Yuan /kw 4.4 Payment of Compensation Fee 1) The relocation compensation for land acquisition and other costs will be paid to the affected collectivities and individuals by the project Office through the county’s resettlement Office; 2) Compensation for houses will be paid before the resettlers start building; in case of paying in terms, the final expense shall be paid before the building completion; 3) The compensation for land and other facilities shall be paid to the relevant communities and

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individuals before land acquisition. 4.5 Rehabilitation Strategy For the land acquisition impact, the economic rehabilitation will be processed on the basis of the rehabilitation schemes in the village area such as land adjustment, or the compensation fee can be directly paid to the affected individuals to develop green house vegetables and animal husbandry. For the relocated families, they will get resettlement or resettlement of centralized property right exchange and cash compensation. 5. Responsible Institution for Resettlement To ensure the successful and effective implementation of the resettlement plan, institution net-work will be set in government of various grades to benefit for being responsible for planning, coordinating, implementing and monitoring the resettlement activities. The institutions set or involved in the land acquisition and relocation of this project are: 1) Provincial Project Resettlement Leading Group 2) Provincial Project Resettlement Office 3) County Project Resettlement Leading Group 4) County Project Resettlement Office 5) Township (Sub-district) Resettlement Office 6) Village Committee or Residential Committee 7) External Individual M&E Institution 6. Appeal Disposal The resettlement plan is considered for the affected area of the overall project and generally planned for the resettlement scheme. In the implementation, it may arouse the resettlers’ complaints because of the changing of the actual situation and the deviations in operation. To effectively resolve these problems for successfully implementing the project construction and land acquisition, the open and effective appeal channel has been established. 1) Appeal Channel Offices for citizens’ complaint letter and visit (including resettlement), which can receive, investigate and process the common appeal problems of resettlers’ appealing to higher authorities for help, are established in the county (city), city and province of the resettlers. The resettlement management institutions which are set up according to the laws, have the grade-to-grade authority, from the province, city to county, to supervise the subordinate for whether processing the resettlement according to the laws; can process the appeal affairs of the resettlement. Independent Resettlement M&E Institution supervises the resettlement implementation according

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to the relative national regulations and is responsible for protecting the legal right and benefit of the resettlers; and can process and reflect to the relevant department the appeal problems of right injuria for the resettlers; Jural departments of administration supervision, audit, disciplinary inspection, judicial administration, inspection are established in various grades of State, province, city and county. They can process the cases about irregularity and principle violation appealed by the resettlers. 2) Appeal Procedures If the resettlers are not satisfied with the resettlement, they can reflect to the village (residential committee), who can consult directly with the local resettlement Office for solution, or can appeal to the superior resettlement Office in oral or written form. After receiving the appeal, the superior resettlement Office will take that on record, research and resolve the problem with the village committee and local resettlement Office within 10 days. In case of encountering with confliction and dispute which cannot be resolved by consultation, the villager committee can appeal to the administration institutions (such as the project Office, resettlement administration institutions, resettlement monitoring institutions, Office for citizens’ complaint letter and visit, administration inspection and disciplinary inspection, etc.) with domination authority grade by grade in appeal channel according to Administration Appeal Law of the PRC. In case of refusing to accept as final, the committee can appeal to People’s Court directly. The resettlement Office shall be responsible for keeping all the appeal problems and resolving courses on the file.

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166 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

167 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources

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6000 4200 1800C-3 4200 C-2

上

上 2400 2400

3500 M-2 900 6600 M-3 6600 6600 C-3 3200 M-2 M-2

M-4 3300 3300 3100 1000

M-1 C-1 1000 C-1 1000

1800 4200 3300 4200 3300 9300 7500

7.600 7.600 6.600 6.300 6.600 6.300 1200 3000

3.300 3.300 3300

0.000 -0.300 0.000 300 -0.300 1800 4200 3300 1000 3300 3500

170 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources 300 1200

4.200 3000 1800 2700 3000 900

C-5 C-6

-0.300 1.200 3300 1800 2400 3000 2400

3200 M-5 -0.300

M-5 400 400

240 450 300 C-5 370 290 1200 900 1000 1800 450 3600 2100 3300 3200 2200 4200 1000 2200

M-2 1200 1000 C-2 C-4 M-3 1800 1800 i=0.25 1500 1500 M-2 M-5 15100 16100

M-5 200 800 240 2200 2200 6.300

1500 C-2 C-2

上 1000 M-4 ±0.000 500

370 3000 ±0.000 4200 4200 3.300

600 600 450 3000 2400

450 500 370

1000 M-1 M-7 3300

±0.000

3000 1200 600 2700 300 7500 4200 3300

171 Sangzhi County Urban Flood Control Project Resettlement Plan Hydro and Power Design Institute of Hunan Province & Ministry of Water Resources 300 200 6.300 1500 1000 3000 7200 3.300 1800 2700 2700

400 1000 400 750 1200 750 C-5 C-6 3300 240 900 1560 1800 300 ±0.000 M-2 3200

-0.300 -0.300 3900 3300 M-2 1400 C-5 240 370 290 600 600 400 1000 400 1500 800 1000 1400 1400 M-5 1000 C-1 C-4

240 800 2700 2700 13700

14700 M-5

C-4 240 1800 M-4 1200 600 C-2 2200 2200 上 M-5 800 240 M-2 3000 900 600 4200 4200 ±0.000

600 2700 600 450 2400 450 370 M-1 M-7 3300 3000 2400

1000 ±0.000 -0.300 -0.300 1800 2100 2250 1050 7200 1800 1400 1400 2700 2200 4200 1000 -0.300

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10440 5% 5%

300

900 3050 3050 2400 ±0.000 ±0.000 -0.300 -0.300 300 300 300 4800 4500

2100 6300 3300 2400 3900 9600 750 600 750 700 600 1200 600 1050 1800 1050 220 280 C-3 1800 1800 M-3 M-3 C-2 C-1 3000 C-2 5% 5% 4500 9300 9300 M-2 M-2

900 5% 7500 M-2 7500 4500 1800 M-2 3000

M-1 C-1 1500 4200 3900 9600 9600

173 Revision of Physical Indices

Physical Revised Implementation Status Items Unit Indices in Physical % Completed original RP Indices Completion I. Administrative Region 1. Township （sub-district） No. 1 1 1 100 2. Administrative Village （residential No. 11 11 3 27.27 committee） 3. Villager group No. 24 24 4 16.67 II. Population Affected by the Project 1. Impact due to land acquisition Number of household HH 20 3 0 0 Population Persons 86 15 0 0 Population in need of economic Persons 56 15 0 0 rehabilitation 2. Impact due to demolition Number of household HH 43 30 4 13.33 Population Persons 201 112 12 10.71 Number of households to be resettled by HH 40 30 4 13.33 building houses Population to be resettled by building Persons 176 112 12 10.71 houses 3. Affected units and enterprises HH 8 8 1 12.5 Total Employees Persons 153 350 280 80 4.Affected small business and shops HH 8 8 0 0 Number of employees Persons 40 40 0 0 5. Total population affected by the project Persons 60 112 12 10.71 III. Houses and Auxiliary Structures Residential Structures ㎡ 16860.04 8507 1239.19 14.57 （I）Urbanl residential houses ㎡ 16860.04 8507 1239.19 14.57 Brick-concrete structure ㎡ 15508.53 7737 1239.19 16.02 Brick-wood structure ㎡ 1044.26 560 0 0 Simple structure ㎡ 307.25 210 0 0 （II） Rural residential Houses ㎡ 9599.8 3000 0 0 Brick-concrete structure ㎡ 9030.55 3000 0 0 Brick-wood structure ㎡ 505.75 0 0 0 Simple structure ㎡ 63.5 0 0 0 （III）Auxiliary Structure 1. Bounding wall ㎡ 283.96 270 0 0 2. Cement sunny ground ㎡ 1747.22 1540 0 0 3. Well m3 9.81 30 4 13.33 4. Telephones No. 24 30 4 13.33 5. CATV line HH 34 30 4 13.33 6. air conditioners No. 16 8 2 25 IV. Permanent Land Acquisition mu 67.57 80.26 57.82 72.04 (1). Collectively owned rural land mu 54.53 72.54 50.48 69.59 1. cultivated land mu 52.88 72.54 50.48 69.59 Revision of Physical Indices

Physical Revised Implementation Status Dry farmland mu 0.57 0 0 0 Commercial vegetable plot mu 52.31 72.54 50.48 69.59 2. river beach land mu 1.65 0 0 0 (2). Urban construction land mu 13.04 7.72 7.34 95.08 1. residential land mu 11.32 6 5.62 93.67 2. other land mu 1.72 1.72 1.72 100 V. Temporary Land mu 127.38 30 0 0 1. Dry farmland mu 12.74 20 0 0 2. Shrubbery forest land mu 25.48 0 0 0 3. Wasteland mu 89.16 10 0 0 VI Tombs No. 2 0 0 - VII. Special Facilities 1. Traffic facilities Tractor road km 0.196 0.196 0 0 2. Power transmission and transformation facilities 10KV high voltage line km 1 1 0 0 380V low voltage line km 0.7 0.7 0 0 3. Telecommunication line km 0.15 0.15 0 0 4. Water resource facilities Electric pumping station No./kw 1\17 1\17 0 0 Revision of Unit Prices Item Unit Unit Price In the Original Revised RP I. Land Compensation (I). Permanent Land Acquisition 1. Collective Rural Land 1.1 Cultivated mu land Dryland mu 7474 22100 Commercial vegetable plot mu 15678 45000 1.2. River mu 4485 9000 beach land 2. State Owned Urban Land 2.1 mu counted in counted in Residential housing housing Land compensation compensation 2.2 Other free re-allocation free re-allocation land （II）. mu Temporary Land 1. Dry mu 4918 8000 Farmland 2. Shrubbery mu 792 3000 forest land 3. Waste mu 800 grassland

II. Compensation for Houses and Auxiliary Facilities （I）Residential m2 Houses

1. Urban Residential Houses 1.1 Brick concrete m2 384 700 1.2 Brick wood m2 314 450 1.3 Simple structure m2 80 120 2. Rural m2 Residential Houses 1.1 Brick concrete m2 384 700 1.2 Brick wood m2 314 450 1.3 Simple structure m2 80 120 （II）Auxiliary Facilities Revision of Unit Prices Item Unit Unit Price 3.1 Cement sunny ground m2 15 30 3.2 Bounding wall m2 18 50 3.3 Well Piece 80 70 3.4 Telephone Set 200 100 3.5 air conditioner Set 200 100 3.6 Cable TV 150 100 III Tombs No. 300 1200 IV. Compensation for Infrastructural Facilities

Site leveling, Person drinking and 1500 1500 lighting V. Relocation Transportation Fee 1. Material Person transportation 100 200 fee 2. Livelihood Person 100 200 subsidy 3. Temporary Person housing 300 1200 subsidy 4. Secondary Person transportation 100 100 fee VI. Piece Compensation for Enterprises and Institutions 1. Relocation subsidy and compensation m2 25 10 fee for equipments 2. Business stop loss (1) brick concrete m2 36 36 (2) brick wood m2 30 30 VII. Compensation for Small Business and Shops 1. Business 2 45 60 stop loss m 2. Relocation subsidy and compensation Piece 200 400 fee for equipments VIII. Special Facilities 1. Traffic facilities Piece Tractor road KM included in the project civil cost Revision of Unit Prices Item Unit Unit Price

2. Power transmission and transformation 10KV high voltage line KM 50000 50000 380V low voltage line KM 27500 27500 3. Telecommunication line KM 50000 50000 4. Water resource facilities Electric pumping station kw 1000 1000 IX. Cultivated Land Occupancy Tax 1. Dry m2 425 farmland 2. Commercial vegetable plot m2 10 25 X. Cultivation Fee for Cultivated Land 1. Dry farmland mu 5600 5600 2. Commercial vegetable plot mu 3500 8000 Revision of Required Resettlement Budget Item Required Resettlement Disbursed Budget as of 30 March (104 CNY) (104 CNY) In the Original Revised Amount Percent RP I. Resettlement Compensation Fee 1203.88 1594.58 319.31 20% 1. Land compensation 91.47 741.4 221.68 30% 2. Compensation for houses and auxiliary facilities 998.46 785.87 47.63 6% 3. Compensation for tombs 0.06 0 0 4. Compensation for infrastructural structures 26.4 16.8 0 0% 5. Relocation transportation fee 10.56 19.04 0 0% 6. Scattered fruit trees 63.63 13.8 50 362% 7. Compensation for enterprises and institutions 2.4 2.4 0 0% 8. Subsidy for vulnerable group 10.9 15.27 0 0% II. Compensation for Special Facilities 11.18 11.18 0 0% 1. Compensation for traffic facilities 2. Compensation for power transmission and transformation 6.93 6.93 0 0% 3. Compensation for telecommunication facilities 0.75 0.75 0 0% 4. CATV 1.8 1.8 0 0% 5. Water resource facilities 1.7 1.7 0 0% III. Other Costs 128.68 159.74 74.8 47% 1. Cost for survey, design and scientific research 36.4 48.05 36.4 76% 2. Implementation management cost 36.4 48.05 36.4 76% 3. IA initiation cost 31.66 31.66 0 0% 4. Technical training cost 6.02 7.96 2 25% 5. M&E cost 18.2 24.02 0 0% IV. Fundamental Contingency Cost 134.19 176.14 0 0% V. Total Investment （excluding tax） 1476.12 1941.64 394.11 20% VI. Relevant Tax 53.67 109.31 0 0% 1. Cultivated land occupancy tax 35.04 48.38 0 0% 2. Cultivation fee for cultivated land 18.63 60.93 0 0% VII. Total Investment （including tax） 1529.79 2050.95 394.11 19%

RP = resettlement plan Items Time 1、Held Public Hearing about Project 01/02/2007 2、Disclose Compensation Policies 01/06/2007 3、Distribute Resettlement Information Booklet 01/06/2007 4、Start of Project Construction 01/04/2007 5、Start of Land Acquisition and Resettlement 01/08/2007 6、Start of Resettlement and Rehabilitation 01/11/2007