46042-002: Hanyin Highway Road Resettlement Plan

Shaanxi Mountain Road Safety Demonstration Project (RRP PRC 46042)

Resettlement Plan (Draft)

May 2015

PRC: Shaanxi Mountain Road Safety Demonstration Project

Prepared by Hanyin District Government.

CURRENCY EQUIVALENTS (as of 10 July 2014) Currency unit – Yuan (CNY) CNY1.00 = $0.16243 $1.00 = CNY6.1565

ABBREVIATIONS AAOV – Average Annual Output Value ADB – Asian Development Bank AHs – Affected Households APs – Affected Persons AV – Administrative Village CRO – County Resettlement Office DI – Design Institute DMS – Detailed Measurement Survey DRO – District Resettlement Office FS – Feasibility Study HD – House Demolition HDG – Hanyin District Government HPMO – Hanyin Project Management Office LA – Land Acquisition LAB – Land and Resources Bureau LAR – Land Acquisition and Resettlement LEF – Land-Expropriated Farmer L&RO – Land & Resources Office MOU – Memorandum of Understanding M&E – Monitoring and Evaluation NDRC – National Development and Reform Commission PADO – Poverty Alleviation and Development office PAH – Project Affected Household PAP – Project Affected Person PDRC – Provincial Development and Reform Commission PPTA – Project Preparatory Technical Assistance PRA – Participatory Rural Appraisal PRO – Project Resettlement Office RIB – Resettlement Information Booklet RP – Resettlement Plan SES – Socioeconomic Survey SPS – Safeguards Policy Statement of ADB SPTD – Shaanxi Provincial Transport Department TRO – Township Resettlement Office

WEIGHTS AND MEASURES km – kilometer m2 – square meter mu – 666.7 m2

NOTES In this report, "$" refers to US dollars.

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website.

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

ADB Loan Project (TA-8440)

Shaanxi Mountain Road Safety Demonstration Project (Component: Hanyin Highway Road)

Resettlement Plan (Draft)

Hanyin District People’s Government May 2015

COMMITMENT LETTER

Hanbin District People’s Government applied for the loan to Asian Development Bank for the Hanbin District component of Shaanxi Mountain Road Safety Demonstration Project.Therefore,the implementation of the project must satisfy the social safeguard policy of ADB.This plan represents a key requirement of ADB, and becomes the basis for the project implementation of land acquisition and demolition as well as relocation and resettlement.The Resettlement Plan adheres to relevant laws and regulations of the People’s Republic of China,Shaanxi Province, Ankang City and Hanbin District and ADB’s Safeguards Policy Statement (SPS 2009) on involuntary resettlement.In order to better accomplish the relocation and resettlement work, the plan also includes some additional actions and implementation and monitoring arrangement.

Hanbin District People’s Government hereby confirms the content of this report and ensures that the land acquisition, demolition, resettlement, compensation and budget fund of the project are all executed according to the Resettlement Plan. The plan is formulated based on the data of feasibility study report and preliminary design of the project and the preliminary survey on social impacts. The plan will be updated based on detailed design, detailed measurement survey and census of the affected persons. The updated Resettlement Plan should obtain the approval from ADB before the commencement of any land acquisition or demolition, and prior to the award of civil works.

District Magistrate of Hanbin District People's Government

GLOSSARY

Affected person (or – Those who are physically displaced household) (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas Compensation – Money or payment in kind to which the people affected are entitled in order to replace the lost asset, resource or income Entitlement – Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base Income restoration – Reestablishing income sources and livelihoods of people affected Resettlement – Rebuilding housing, assets, including productive land, and public infrastructure in another location Resettlement Impact – Loss of physical and non-physical assets, including homes, communities, productive land, income-earning assets and sources, subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms Resettlement Plan – A time-bound action plan with budget setting out resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring and evaluation Vulnerable Group – Distinct groups of people who might suffer disproportionately from resettlement effects, as specified in this plan Cut off date – The effective date for resettlement eligibility based on the detailed measurement survey (DMS) based census of APs and preparation of a full inventory of losses.

Contents 1 PROJECT OVERVIEW AND BACKGROUND ...... 1 1.1 PROJECT BACKGROUND ...... 1 1.2 PREPARATION OF RP ...... 2 1.3 SCOPE OF THE HANYIN HIGHWAY ROAD SUBPROJECT ...... 2 1.4 MEASURES EMPLOYED TO AVOID OR FURTHEST REDUCE LAND ACQUISITION AND DEMOLITION ...... 4 2 PROJECT IMPACT ...... 7 2.1 SURVEY METHOD AND PROCESS ...... 7 2.2 OVERALL IMPACT OF THE SUB-PROJECT ROAD COMPONENTS ...... 8 2.3 IMPACT OF PERMANENT COLLECTIVE LAND ACQUISITION ...... 8 2.4 TEMPORARY LAND OCCUPATION ...... 11 2.5 ANALYSIS OF IMPACT OF RESIDENTIAL HOUSE DEMOLITION ...... 11 2.6 IMPACT OF DEMOLISHED BUILDINGS OF ENTERPRISES AND PUBLIC INSTITUTIONS ...... 12 2.7 AFFECTED INFRASTRUCTURE AND GROUND ANCILLARY FACILITIES ...... 12 2.8 AFFECTED POPULATION ...... 13 3 SOCIAL AND ECONOMIC PROFILE OF THE PROJECT AREA ...... 16 3.1 SOCIOECONOMIC PROFILE OF PROJECT AREA ...... 16 3.2 SOCIOECONOMIC PROFILE OF AFFECTED HOUSEHOLDS ...... 19 3.3 GENERAL SITUATION OF THE AFFECTED ENTERPRISES AND PUBLIC INSTITUTIONS ...... 26 3.4 WOMEN’S DEVELOPMENT IN PROJECT AREA ...... 26 4 LEGAL FRAMEWORK AND POLICIES ...... 30 4.1 OVERVIEW OF RELEVANT LAWS, REGULATIONS AND POLICIES ...... 30 4.2 THE PRC’S LAWS AND REGULATIONS ON LAND ACQUISITION AND RELOCATION ...... 30 4.3 RELEVANT POLICIES OF SHAANXI PROVINCE AND HANYIN/XUNYANG DISTRICT/COUNTY . 32 4.4 ADB’S POLICY REQUIREMENTS ON INVOLUNTARY RESETTLEMENT ...... 32 4.5 DIFFERENCES OF ADB’S AND LOCAL POLICIES ...... 34 4.6 ADB POLICY ON GENDER AND DEVELOPMENT ...... 35 5 COMPENSATION PRINCIPLE AND ENTITLEMENT ...... 36 5.1 RESETTLEMENT PRINCIPLES ...... 36 5.2 CUT-OFF DATE OF COMPENSATION ...... 36 5.3 COMPENSATION RATE FOR PERMANENT LAND ACQUISITION ...... 37 5.4 COMPENSATION RATE FOR TEMPORARY LAND OCCUPATION ...... 37 5.5 COMPENSATION RATE FOR HOUSE DEMOLITION ...... 38 5.6 COMPENSATION FOR GROUND ATTACHMENT AND INFRASTRUCTURE ...... 40 5.7 COMPENSATION FOR YOUNG CROPS ...... 40 5.8 STANDARD OF OTHER COSTS ...... 40 5.9 ENTITLEMENT MATRIX ...... 41 6 RESETTLEMENT AND INCOME RESTORATION PLAN ...... 45 6.1 IMPACT OF PERMANENT LAND ACQUISITION AND INCOME RESTORATION MEASURES ...... 45 6.2 DEMOLITION AND RESETTLEMENT PLAN FOR RESIDENCE ...... 51 6.3 LIVELIHOOD RESTORATION FOR VULNERABLE GROUPS ...... 54 6.4 WOMEN’S DEVELOPMENT MEASURES ...... 55 6.5 RECOVERY PLAN OF GROUND ATTACHMENTS AND SPECIAL FACILITIES ...... 55 7 INSTITUTIONAL ARRANGEMENTS ...... 57 7.1 INSTITUTIONAL ARRANGEMENTS ...... 57 7.2 ORGANIZATIONAL RESPONSIBILITY ...... 58 7.3 STAFFING AND EQUIPMENT ...... 61 8 RESETTLEMENT BUDGET ...... 62 8.1 RESETTLEMENT BUDGET ...... 62

8.2 RESETTLEMENT INVESTMENT PLAN AND SOURCE OF FUND ...... 65 8.3 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS ...... 65 8.4 APPROVAL OF BUDGET INCREASE ...... 65 9 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 67 9.1 PUBLIC PARTICIPATION ...... 67 9.2 GRIEVANCES AND REDRESS ...... 73 10 IMPLEMENTATION PLAN OF RELOCATION AND RESETTLEMENT...... 76 10.1 PRINCIPLE FOR IMPLEMENTATION OF RELOCATION AND RESETTLEMENT ...... 76 10.2 RP IMPLEMENTATION SCHEDULE ...... 76 11 MONITORING, EVALUATION AND REPORT ...... 79 11.1 INTERNAL MONITORING ...... 79 11.2 EXTERNAL MONITORING ...... 79 11.3 SCOPE AND METHODOLOGY OF EXTERNAL MONITORING ...... 79 11.4 POST EVALUATION ...... 81 1 PROJECT RESETTLEMENT IMPACT ...... 88 1.1 IMPACT OF PERMANENT COLLECTIVE LAND ACQUISITION ...... 88 1.2 TEMPORARY LAND OCCUPATION ...... 89 1.3 HOUSE DEMOLITION ...... 89 1.4 AFFECTED POPULATION ...... 89 2 LEGAL FRAMEWORK AND POLICIES ...... 90 2.1 POLICY BASIS ...... 90 2.2 COMPENSATION STANDARDS FOR LAND ACQUISITION AND HOUSE DEMOLITION ...... 91 3 RELOCATION OF AFFECTED HOUSEHOLDS OF HOUSE DEMOLITION...... 92 3.1 RELOCATION OPTIONS ...... 92 3.2 CONCENTRATED RESETTLEMENT SITE ...... 93 3.3 OTHER SUBSIDY POLICY: ...... 93 4 INCOME RESTORATION ASSISTANCE MEASURES OF LAND ACQUISITION ...... 94 5 ASSISTANCE TO VULNERABLE GROUPS ...... 95 6 GRIEVANCE PROCEDURES ...... 96 7 IMPLEMENTATION ORGANIZATIONS OF RELOCATION AND RESETTLEMENT ...... 97

EXECUTIVE SUMMARY

E1. DESCRIPTION OF THE PROJECT

1. Hanyin District Highway Road component includes two highways – (i) rehabilitation to the G316 (national road) between the Hanyin District of Ankang City and Lvhe Town of Xunyang County section (hereinafter short for Anxun Highway) in total of 34.4 km, and (ii) rehabilitation of Yanba and Dongqiao Highway (rural road component, road #5) township road, hereinafter short for Yandong Highway in total of 10.7 km.

E2. LAND ACQUISITION AND RESETTLEMENT SCOPE

2. The land acquisition and resettlement (LAR) of Hanyin component will affect 11 administrative villages, and 4 town/townships, including a total of 658 households with 2,485 persons affected，including 599 households with 2,234 persons affected by land acquisition only and 59 households with 251 persons by both land acquisition and house demolition.

3. A total of 463.96 mu of rural collective land areas will be permanently acquired, including 132.89 mu of cultivated land (28.64%), 18.73 mu of housing plots (4.04%), 291.5 mu of forest land (62.83%), and 20.84 mu of barren land (4.49%). 658 households with 2,485 person will be affected by land acquisition.

4. In addition, a total of 46.61 mu temporary land occupation is planned.

5. The project will involve 11,887 m2 of building demolition, including 8,923 m2 brick concrete building, 960 m2 of brick-wood buildings, 1,793 m2 earth wood housing, and 211 simple house structures. 59 households with 251 persons will be affected by house demolition (all of them will be affected by land acquisition also). In addition, scattered trees, poles, wires, tombs, enclosures, water wells and other ground ancillary facilities will be affected.

6. No enterprises and public institutions or shops are involved in acquisition and demolition. In the implementation area of the project, no ethnic minorities will be affected.

E3. RESETTLEMENT PRINCIPLES AND ENTITLEMENTS

7. The Resettlement Plan (RP) is prepared in accordance with the related policies of PRC, Shaanxi Province, Ankang City and Hanyin District relating to land acquisition and house demolition, as well as ADB’s Safeguards Policy Statement (SPS 2009), Safeguards Requirement 2, Involuntary Resettlement. The objective of the RP is to ensure LAR impacts are avoided and/or minimized; affected persons (APs) are compensated for their losses on the basis of replacement cost, that livelihoods and standards of living of displaced persons are improved, or at least restored to pre-project (physical and/or economic) levels and that the standards of living of the displaced poor and other vulnerable groups are improved, not merely restored, by providing adequate housing and steady income and livelihood sources. Also, APs are informed and consulted from the early stage of the project and their grievances are addressed in a timely manner.

E4. COMPENSATION STANDARDS

8. Based on consultation with the local governments and affected persons (APs) and general practices in the project area, the Hanyin District Government (HDG) has adopted a set of resettlement principles, and an entitlement matrix has been prepared for the Project. The compensation standard for land acquisition is in accordance with national laws and regulations, as well as the resettlement policy of Shaanxi Province, Ankang City, Hanyin District, and fulfills the ‘replacement cost’ requirements of the ADB SPS 2009.

9. Compensation for the acquired rural collective land includes land compensation fees and resettlement subsidies of CNY 60,000 per mu for paddy field, CNY 54,000 per mu for plain dryland, CNY 45,000 per mu for sloping dryland, CNY 48,600 per mu for housing plot, CNY 22,500 per mu for forest land and CNY 18,000 per mu for other land. The compensation for young crops of paddy land and dryland will be CNY 1,200 per mu.

10. The compensation standard for house demolition is set according to replacement cost of Hanyin District, CNY 1,000 per m2 for brick and concrete housing, CNY 520 per m2 for brick and wood housing, and CNY 400 per m2 for earth wood structures. The AHs will receive a moving allowance of CNY 1,000 per household, and transition subsidies of CNY 250-400 per month if needed in case the new houses are not fully ready before moving. The compensation standards for other affected assets including trees, fences, walls and other surface attachments, and water and power facilities are set according to replacement cost. Awards for advance moving have been set at: 1) CNY 4,000 for moving within 20 days of agreement signing, 2) CNY 2,000 for moving within 30 days of agreement signing, and 3) CNY 1,000 for moving within 40 days of agreement signing.

11. Compensation for land acquisition, residential housing, and other attachments will be paid to the affected villages and APs respectively.

E5. RESETTLEMENT AND LIVELIHOOD REHABILITATION

12. Among the 658 households affected by LA, 398 AHs (60.5%) will lose 0-5% of their cultivated land, 190 households (28.9%) will lose 5-8%, 65 households (9.9%) will lose 8-10%, and only 5 AHs (less than 0.8%) will lose 10-15%. No household will lose more than 15% of their land. The household income sources in the project area are mainly from non-farming amounting to 75.9%, with farming contributing the remaining 24.1%. The land acquisition impacts on household’s net income are therefore limited (about 0.08-3.11% based on the land loss rate and income structure) and will have minimal impact on the livelihood standards of the affected households. To minimize the resettlement impacts to APs and restore their living standards, measures have been developed and included in this RP. The comprehensive compensation package that will be used by the affected persons, which includes farming and non-farming measures. Farming measures include expanding cash crop plantation, improving existing low yield cash crops and land rental to expand agricultural plantation, will help offset the losses incurred due to the land acquisition impacts. Non-farming measures include arranged jobs, waged non-farming jobs, off-farming business. In addition, special measures for vulnerable groups have been put in place.

13. For physical displaced households (i.e., house demolition), various options are available for AH to choose according to their own desire in order to restore their living condition. In all cases, cash compensation for housing plots, house structures including other structures and attachments based on replacement costs as well as transfer allowances will be provided. The major options include:

(i) Reconstruction of new housing by AHs themselves: For those who choose to construct new houses, they need buy a housing plot themselves using the paid compensation. The housing plot compensation standard has been discussed several times with the AHs. It is agreed that the current compensation standard is in general enough to purchase similar condition housing plot in the same area. Should the AH purchase a housing plot cheaper than the compensation standard, the saving belongs to the AH. If the household choose reconstruct their new house in a better place (e.g. closer to town center area or a wider space) voluntarily, they need pay the additional costs by themselves. If the households have difficulties finding a housing plot, the town government has committed to provide a similar one acceptable to the AH with a price not exceeding the compensation standard, regardless of the cost. There are no additional costs to the AH. (ii) Participate in New Rural Village Development Plan: For those who are willing to purchase new house in residential area under new rural village development, cash compensation of housing plot and replacement price will be paid directly to AHs. In addition, discount has been negotiated and committed. Both location and quality of the house is better than the proposed demolition house in general. The price committed is only the construction cost, which is higher than the compensation standard but lower than the commercial residential house. This arrangement is very favorable to the AH and acceptable to them according to the field discussion. (iii) Cash Compensation with no need of new house construction. For those households with alternative houses in the city or nearby places or that plan to buy commercial residential housing in town and to give up reconstructing new houses, an application in writing is required. In addition to cash compensation for housing plots and replacement price of house structures including annex buildings paid in cash to AH directly, additional resettlement subsidy of CNY 10,000 per person and CNY 10,000 cash reward per person will be granted once the AH’s application of giving up new house construction is approved.

E6. PUBLIC PARTICIPATION AND GRIEVANCE

14. From January 2013 to August 2014, over 18 consultation activities were carried out with the APs (including 60% women), village communities (VCs), and other project stakeholders. The APs have participated in the preparation of the RP throughout the measurement and socioeconomic surveys, and community meetings. Issues raised include village road extension, compensation options, replacement plans, compensation delivery, willingness of livelihood restoration options, resettlement site selection procedures, etc. Their concerns and comments have been integrated into the RP. Further consultations will be held during the implementation of the RP. A grievance redress procedure has been established for the APs to manage LAR and other project related issues. Both oral and written grievances received and their redress actions will be recorded and will be made available to the external monitor and ADB missions on request. The APs can also put forward grievances to the external monitoring and evaluation agency.

E7. INSTITUTIONAL ARRANGEMENT

15. FPPO in Shaanxi Provincial Transport Department (SPTD) is the coordinating organization in responsible for the overall deployment and supervision of the project and solving problems and major issues. The PMO of SPTD will also take the primary responsibility for the

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resettlement consultation, implementation, and timely delivery of entitlements, and report the implementation progress of the RP to ADB.

16. Hanyin district transport bureau (HDTB) on behalf of Hanyin District Government (HDG) is the implementing agency (IA) of the Hanyin component. PMO a working body set up in HDTB is mainly responsible for organizing the resettlement work of the project, and making decisions and consultation on major issues arising from cons truction and resettlement. Hanyin Project Resettlement Office under Hanyin PMO is responsible for the detailed work of preparation and implementation of the RP. Each town government and the affected village and community committees are responsible for working with Hanyin Project Resettlement Office in the implementation of this RP. 1-2 leaders in each town government and each village committee respectively will be nominated to lead the RP preparation and implementation.

17. To ensure smooth implementation, the staff in charge of RP will undertake training on resettlement implementation.

E8. RESETTLEMENT IMPLEMENTATION SCHEDULE

18. The resettlement implementation schedule has been prepared based on the preparation and construction timetable. The RP will be updated based on the final design and detailed measurement survey and be submitted to ADB for review and approval prior to award of civil works contracts. It is scheduled that land acquisition and housing demolition will commence in October 2015 and most of the resettlement activities will be completed by December 2016. However, rehabilitation of housing and livelihoods may take longer to complete. The PMO of SPTD has agreed to a set of supervision milestones with ADB to ensure timely and effective implementation of the resettlement activities.

E9. RESETTLEMENT COST

19. The resettlement costs of the Project are CNY 35.771 million budgeted in the project, which is 11.1% of the cost of the component, including permanent LA costs of CNY 14.796 million, compensation fees for house demolition CNY 10.582 million and CNY 0.765 million of compensation fees for infrastructure and ground attachments, special facilities of CNY 0.2 million, special supporting funds for vulnerable groups CNY 0.264 million, training CNY 0.132 million, RP preparation and M&E of CNY 0.396 million, taxes CNY 5.323 million and contingencies of CNY 3.252 million.

E9. MONITORING AND EVALUATION

20. Details for both the internal and external monitoring and evaluation (M&E) are included in the RP. The Provincial level PMO will submit an internal progress report quarterly to ADB. Furthermore, the project sponsor will engage an independent external resettlement monitoring institute or firm to undertake external monitoring of the RP implementation. A baseline study will be conducted before the LAR begins and the first monitoring report will be submitted in 2016. After that and until project completion, semi-annual monitoring reports will be prepared and submitted for ADB’s review. After completion of the LAR, annual evaluation reports will be submitted to ADB for 2 years or longer if there are any remaining issues.

1 Project Overview and Background

1.1 Project Background

21. Shaanxi Province is one of the least developed provinces with per capita GDP, per capita urban income and per capita rural income at about 100%, 84% and 73% of the national averages in 2012, ranking in 14th, 18th and 26th respectively among the 31 administrative provinces and regions in PRC. Fifty of Shaanxi’s 107 counties have been officially designated national poverty counties.

22. The project is located in Ankang and Shangluo, two prefecture-level cities of southern Qinba Mountain of Shaanxi. Qinba Mountain is one of the 11 poorest regions targeted for concentrated interventions under the 2011−2020 poverty reduction strategy of PRC Government. The proposed project will have direct impact on three counties (Hanyin District, Xunyang County and Shangnan County), all of which have been designated as national poverty counties since the 1990s. In 2012, Shaanxi province raised the poverty line to CNY2785, which is higher than the national poverty line of CNY 2,300. The overall poverty incidence of Shaanxi is 30%, using latest provincial poverty standard of CNY 2,785 is about 30% as of 2012.The poverty incidence ratio of the project county/district Xunyang, Hanyin and Shangnan is 40%, 38.6% and 34.3% respectively in 2012.

23. Lack of adequate transport accessibility and a poor quality of the road network are some of the major constraints for the social and economic development of the region.

24. The primary objectives of the road rehabilitation components are threefold: 1) to upgrade network capacity for an expanding transport volume in the area, and 2) to provide all-weather access to the village and county roads that connect to the trunk roads, and 3) to improve the road safety condition of these rehabilitated roads and an additional 660 km of rural roads.

25. The Project will comprise four components: (i) Component 1: Rehabilitation of 187.05 km arterial highways, including 60.25 km of S102 Xunyang – Xiaohe Highway, 34.39 of G316 section from Xunyang – Ankang City Center Highway and 92.41 km S224 Shangnan County Chengguan Town – boundary of Shaanxi and Hubei provinces; This RP covers of Xunyang- Xiaohe Highway. (ii) Component 2: Upgrade of 8 rural roads with the total distance of 139.656km, including three township roads in Xunyang County, Hanyin District and Shangnan County (one each county/district) and five village roads in Xunyang County (three) and Hanyin District (two). This RP covers Yandong township road in Hanyin District. (iii) Component 3: Improvement of the road safety of subproject 1 and 2 and other road sections of about 660km; (iv) Component 4: Capability building and agency development, with the focus on the systematic capability of Shaanxi Provincial Transport Department related to road safety.

26. The project will benefit 1.7 million local people from the 3 project counties and district, and many more from the neighboring provinces and counties. Among the 1.7 million beneficiaries, rural and urban residents account for 78% and 22% respectively.

1.2 Preparation of RP

27. Financed by ADB, the project needs preparation of Resettlement Plan (RP) before project construction, based on the standard requirements of ADB of the loan-aided project. On April 8- 11, 2014, ADB Project Preparation Technical Inception Mission (short for “Inception Mission”) visited Xi’an and determined the content, principle and requirement of project Resettlement Plans. The “Inception Mission” and SPTD (the executing agency) confirmed: The project RPs include the following: (i) Formulating three independent RPs for trunk highway and township highway by units of the 3 project implementation counties and district. One RP for each county/district is required to cover its trunk highways and township roads; (ii) Formulating independent RPs for village roads by county (district). Because no village road upgrading are included in Shangnan County, the RPs for village roads only involves Xunyang County and Hanyin District; and (iii) A resettlement framework (RF) for road safety subproject (about 660km) including the due-diligence taken during the PPTA to assess potential LAR impacts of the road safety component.

28. Based on the above tasks, the SPTD authorized consultant experts from Shaanxi Academy of Social Sciences to formulate the corresponding documents.

29. This document is the RP for trunk highways and township/county roads of Xunyang Component. The key data and information in this RP is from 4 sources: (i) the feasibility study report of the project, preliminary design and preliminary census survey results, relevant governmental documents; (ii) information provided by functional departments concerned, e.g., policy documents, work summaries, statistics; (iii) information provided by the affected town and village groups, e.g., basic information and statistical reports; and (iv) information obtained through focus group discussions (FGDs), interviews and household (HH) questionnaire survey.

1.3 Scope of The Hanyin Highway Road Subproject

30. Hanyin trunk road component includes improvement to the G316 (national road) between the Hanyin District of Ankang City and Lvhe Town of Xunyang County section (hereinafter short for Anxun Highway) in total of 34.4 km, and upgrade to Yanba and Dongqiao (rural road component, road #5) township road, hereinafter short for Yandong Highway in total of 10.7 km. Figure 1 shows the distribution of the project roads. Note G316 (Anxun Highway) and Road #5 Yandong Highway covered by this RP.

31. Anxun Highway improvement starts at Lvhe Town of Xunyang County, traverse through Lijiazhuang village, Xuejiawan village, Duanjiahe village, Gaobiliang village and Beiyan village in Xunyang County, then runs through village of Longquan, Zaoyang, Dongwan village in Hanyin District and ends in Jinxing village.

32. Yandong Highway upgrade starts from the connecting point of Jieji River and Yanba highway, runs through Heihu Village, Tangtai Village and Guiping Village, and ends at the T- shape crossing formed by Dongqiao Village of Yinghu Town and S207. The details see appendix 9 of the PPTA report. Table 1-1 summarizes the basic scope of the subproject.

Table 1-1: Basic Information of Hanyin Trunk Road Subproject Length Scope of project’s impact Component Project construction content and class investment zone II Starting from Lvhe Town of 34.386 Xunyang County, it runs through km, Two towns (Duanjiahe Duanhe Town, Zaoyang Town upgrade Town and Zaoyang Town) Anxun and Guanmiao Town, and finally from CNY and seven villages Highway reaches the bridgehead of class III 292.53 (Lijiazhuag, Xuejiawan, (G316) Hanjiang Bridge. to class II million Beian, Zaoyang, Dongwan reconstruction ROW to be widened from about and Longquan), totaling 7.5m to 8.5-10m, for some 2078 people sections with existing 12m, no widening required. Stating from the highway 10.697 connecting Jieji River and Yanba km, Highway. It runs through Heihu upgrade Yandong Two villages (Yinghu and Village, Tangtai Village and from no Highway CNY Yanba) and four villages Guiping Village, and ends at the class to (township 30.03 (Dongqiao, Heihu, Tangtai T-shape crossing formed by Class IV road) million and Guiping), totaling 407 Dongqiao Village of Yinghu Town reconstruction people and S207. Row to be widened from 4m to 6.5m Sources: Preliminary Design Documents.

1.4 Measures Employed To Avoid or Furthest Reduce Land Acquisition and Demolition

33. During the alignment selection, feasibility study and preliminary design of the project, great efforts are taken to avoid or reduce the impact of land acquisition and demolition. Three basic rules are followed throughout the whole process of project preparation:  Keep the alignment away from cultural landscape and key culture relics protection units.  Keep the alignment close to but not clashing with the existing or planned residential area.  Keep the alignment away from or try to reduce encroachment on environmentally sensitive area and reduce acquisition of primary cultivated land.

34. In the preliminary design stage, at least two options are compared in detail for each key section. Through comprehensive analysis and balance of project engineering requirements, environmental impact, land acquisition and house demolition, and project investment and following the above three basic requirements, optimized plans are selected. Overall, land acquisition and house demolition reduced significantly. Table 1-2 summarized Anxun highway overall results of measures to reduce of land acquisition and house demolition and an example section comparison.

Optimized design of Aijiahe section (K22+800～K24+211.408) of Anxun Highway

35. This is a key section that requires realignment to avoid existing Xiangyang-Chongqing Railway. The feasibility report option B (green line in the map) has been recommended. In the

preliminary design stage, alternative option A (redline in the map) has been planned and assessed. The specific plan comparison is as follows:

(i) Option A (Selected option in preliminary design stage, red line in the map):

36. In this plan, the route starts from K22+800, and deviates from the old route at K23+100; then at K23+210, with a new Nianzigou Bridge built across the ditch, and the old route is connected at K23+300 (Here, the horizontal distance from the existing tunnel of Xiangyang- Chongqing Railway is 13.6m, and the designed elevation from the existing tunnel is 28m); the old route part is to be widened and rebuilt, and the planning route deviates from the old route at K23+520; at K23+667, with a new Aijiahe Bridge to be built across the ditch, and the old route is connected at K23+783 (Here, the horizontal distance from another existing tunnel of Xiangyang- Chongqing Railway is 12m, and the designed elevation from the tunnel is 14m); a 78m long Zaoyang tunnel is to be built at K23+822~K23+900, connecting with the old route. The total length of the route is 1.252km.

37. Advantage: By widening and rebuilding the old road, the tunnel length is shortened and the project cost is reduced CNY 21.32 million compared to plan B. Xiangyang-Chongqing Railway is avoided and impact of land acquisition and demolition for construction is reduced. Land acquisition decrease from 23.55mu to 21.58mu, save about 1.97 mu or 8.4%. House demolition decrease from 2130 square meters to 200 square meters, reduced 90.6%.

38. Disadvantage: The two newly built bridges are close to the existing tunnel of Xiangyang- Chongqing Railway resulted in 1) many potential disturbance during the construction; 2) increasing technical difficulties of construction: facing a high slope at K23+320, the king-pile will be 18.22 m deep and the maximum depth of the slope is 29.33 m.

(ii) Option B (recommended by feasibility plan, green line in the map):

39. In this plan, the route starts from K22+800, and deviates from the old route at K23+100; then, at K23+205, a new Nianzigou Bridge (3×50m+20m pre-stressed concrete T girder and box girder) is to be built across the ditch, and the old route is connected at K23+290 (Here, the horizontal distance from the tunnel exit of Xiangyang-Chongqing Railway is 90m); then, a 388m long Zaoyang tunnel is to be built at K23+298~K23+686, connecting with the old route at K23+690 (Here, the horizontal distance from the tunnel exit of Xiangyang-Chongqing Railway is 28m); at K23+830, a new Aijiahe Bridge (5×20+2×40+20+2×40m prestress box girder) is to be built across the Xiangyang-Chongqing Railway and the multiple tracks; at K23+746, the designed elevation across Xiangyang-Chongqing Railway is 289.259m, and the elevation of the track roof here is 269.2m; at K23+905, the designed elevation across the multiple tracks of Xiangyang-Chongqing Railway is 287.18m, and the elevation of the track roof here is 265.42m; the old route is connect at K23+970. The total length of the route is 1.411km.Advantage: It avoids Xiangyang-Chongqing Railway and the difficulty of construction is low.

40. Advantage: It avoids Xiangyang-Chongqing Railway tunnel exit at a longer horizontal distance and higher vertical distance and reduces the technical difficulties of construction implementation.

41. Disadvantage: the costs are CNY 21.32 million higher than option A resulted mainly by the longer Zaoyang tunnel (388 meters of option B versus 78 meters of Option A) and more house demolition and land acquisition. The plan involves 1,930 more square meters house demolition and 1.97 mu more land acquisition compared to option A.

42. With comprehensive comparison, Plan A is recommended. Figure 1-2 shows the two options and Table 1-2 summarizes the comparison of overall Anxun highway and Aijiahe section as an example. Figure 1-2: Option Comparisons for Daling Section

Options in feasibility Options in Preliminary Optimized plan and Item study Design relocation reduced No descriptio Relocatio . Length of Resettleme Length of Resettleme Optimize n n route nt impact route nt impact d plan reduced The building Land Land demolition Preliminar acquisition of acquisition of increased Overall A route of A route of y design 2 427.197mu, 328.617mu, by 358m , 1 Anxun 34.368km 34.368km option building building but land Highway long long was demolition of demolition of acquisition 2 2 selected 9,915m 10,300m reduced by 98.58 mu Building Land Land demolition Preliminar Aijiahe acquisition of acquisition of reduced (K22+800～ (K22+800～ y design 2 section as 23.55 mu, 21.58 mu, 1,930 m 2 K24+211.40 K24+211.40 option an building building and land 8) 8) was example demolition of demolition of acquisition 2 2 selected 2130 m 200 m reduced 1.97mu Source: Project feasibility study, preliminary design documents, and field resettlement survey in July 2014.

2 Project Impact

2.1 Survey Method and Process

43. The impact scope is based on the preliminary design and field sample survey. Detailed measurement surveys are to be updated in the final resettlement plan.

2.1.1 Project survey of the early stage

44. The project resettlement survey included two stages: During the feasibility study phase from July 2011 to January 2014, consultant experts of Shaanxi Academy of Social Sciences together with the authorized feasibility study team conducted preliminary project impact survey. General social and economic status information were collected and the levels of village and land impacts are estimated. Local government line agencies and potential affected village leaders and village representatives are consulted. Opinions on project scope and alignment selection are incorporated in the initial project scope.

45. In February 2014, after receiving the project preliminary design , consultant experts of Shaanxi Academy of Social Sciences together with the design institute and IA reviewed and updated the resettlement impact estimation, conducted social economic survey of the affected county, town, and village, and sampled affected HHs. Key informants interview, focus group discussion and field observation were also employed to collect comments and suggestions towards the project scope, design and resettlement plan. The survey determined that the Hanyin trunk road sub-project will affect 658 households with 2,485 persons in 11 administrative villages of 4 towns.

2.1.2 Data source and survey method 46. The data in this RP is derived from two sources: 1) Secondary data collected from local government agencies, villages, literature review of the existing statistic data and five-year plans, and project design documents provided by PMO and design institute, 2) Primary data collected through field sample households survey, key informants interview, focus group discussion, consultation meetings and some physical measurements.

47. Survey on land acquisition: Based on the project preliminary design, the survey team estimated the total land acquisition size on map and categorized the land acquisition by land types and ownership according to the field observation and village leader interview.

48. Survey on the affected population: Socioeconomic sampling surveys were carried out on the affected population, including ethnicity, age, educational background, employment status, income and expenditure structures, etc. Sampling households are from 6 villages, including 4 villages along the Anxun highway and two villages along the Yandong highway, accounting for 54.5 % of the total affected villages. The sampling survey involves 123 households (18.7%) of the total affected households. The survey also involves 12 group interviews. On the basis of the analysis and processing of the data and information in the above survey, according to national and ADB relocation and resettlement policies, Shaanxi Mountain Road Safety Demonstration Project Resettlement Plan for Anxun Highway and Yandong Highway of Hanyin Subproject has been compiled.

49. Survey on the demolished houses and ancillary facilities: The project involves house demolition. On-site check was conducted for the demolished houses one by one, including all ancillary facilities. The survey team together with the village leaders based on the preliminary

design map, identified the potential affected house and ancillary facilities, documented ownership, categorized structure types and estimated size.

50. Survey on scattered trees: The scattered trees within the impact scope of the acquisition land are checked on site so as to distinguish fruit trees from other trees. Numbers and varieties were estimated but ownership does not identified.

51. Survey on special facilities: Surveys were done on the affected electric power supply, telecommunications cables and other special facilities. Based on the existing information from the line departments, the survey team together with representatives from the owner departments carried out the field check and recording.

2.2 Overall Impact of the Sub-Project Road Components

52. The impact of land acquisition and demolition of the project involves four towns and 11 administrative villages. See Table 2-1 for reference.

Table 2-1: List of Towns and Administrative Villages affected by Road Components Road Name of town/ Name of village/ neighborhood committee affected Components street affected Dongwan Village, Zaoyang Village, Longquan Village Beian Zaoyang town and Anxun Highway Village, Gaobiliang Village, Xuejiawan Village and Lijiazhuang Duanjiahe town Village Yandong Yanban town and Heihu Village, Tangtai Village, Guiping Village and Dongqiao Highway Yinghu Town Village Source: Field resettlement survey in July and August 2014.

53. The road components will include permanent land acquisition totaling 463.96 mu, temporary land occupation 46.61mu, and building demolition of 11,887㎡. Scattered trees, power poles, electric wire, tombs, enclosure, water wells and other ground ancillary facilities will be affected by the land acquisition and demolition. A total of 658 households with 2,485 persons are affected, including 59 households with 251 persons to be affected by both HD and LA . Out of the 59 HD affected HH 9 affected by HD with only homestead land.

54. No enterprises or shops are affected by the sub-project.

55. According to the household information of the affected villages, no ethnic minority population is affected by the land acquisition and demolition in the project area.

2.3 Impact of Permanent Collective Land Acquisition

56. The project will permanently acquire 463.96 mu rural collective land of the above- mentioned areas, including cultivated land of 132.89 mu (28.64%), housing plot or homestead of 18.73 mu (4.04%), barren land (Slop unused land, poor soil land, rocks, riverbed, etc.) of 20.84 mu (4.49%) and forest land of 291.5 mu (62.83%).

Table 2-2: Permanent Land Acquisition Impact by Land Type and Affected Villages1 Village Permanent land acquisition (mu) No. of committe Fore Barre No. of affecte Road Town e/ Cultivat Homeste st n Subtot affecte d communi ed land ad land land al d HH perso ty n Dongwan 6.31 0.68 4.01 0 11 45 135 Zaoyan Zaoyang 26.57 4.9 32.99 0 64.46 150 600 g Longquan 12.68 1.41 0 0 14.09 120 425 Beian 12.71 0 8.71 0 21.42 40 135 Anxun Gaobilian 11.38 3.2 73.2 13.45 101.23 32 121 Highwa Duanjia g y he Xuejiawa 32.06 6.42 74.5 0 112.98 165 627 n Lijiawan 1.73 0 1.71 0 3.44 9 35 195.1 Subtotal 103.44 16.61 13.45 328.62 561 2078 2 Heihu 9.52 0.23 0 3.67 13.42 13 52 Yandon Yanba Tangtai 10.68 0.67 20.15 3.72 35.22 21 85 g Guiping 8.47 0.87 46.57 0 55.91 28 112 Highwa Dongqiao y Yinghu 0.78 0.35 29.66 0 30.79 35 158 Subtotal 29.45 2.12 96.38 7.39 135.34 97 407 Total 132.89 18.73 291.5 20.84 463.96 658 2485 Proportion % 28.64 4.04 62.83 4.49 100 / / Data source: Resettlement Survey in July and August 2014.

57. Table 2-3 shows details of land acquisition by road component. Anxun Highway will involve the most land acquisition (about 77.8% of total cultivated land, 88.7% of total housing plot, 66.9% of total forest land and 64.5% of, barren land) compared to Yandong Highway (22.2% of total cultivated land, 11.3% of total housing plot, 33.1% of forest land and 35.5% barren land acquisition). In terms of affected households and population, Anxun Highway has 85.3% and 83.6% of AHs and APs compared to 14.7% and 16.4% for Yandong Highway.

Table 2-3: Permanent Land Acquisition Impact by Road Components Permanent land acquisition (mu) 2 Affected Name of Affected * Cultivated Forest Barren *populatio Highway Hosing Plot Total households land Land land n Anxun 103.44 16.61 195.12 13.45 328.62 561 2078 Highway Proportion % 77.8 88.7 66.9 64.5 70.8 85.3 83.6 Yandong 29.45 2.12 96.38 7.39 135.34 97 407 Highway Proportion % 22.2 11.3 33.1 35.5 29.2 14.7 16.4 Total 132.89 18.73 291.5 20.84 463.96 658 2485 * The affected households and population include 9 households with only homestead land affection, namely affected by house demolition only. Data source: FS, preliminary Design and field RP survey in July and August 2014.

1 The land acquisition impact by categories of land will be further verified during the detailed measurement survey (DMS) based updating of the RP when a full census of the affected peoples will be undertaken and an inventory of all losses incurred will be prepared. During this updating the individual household affected by land acquisition of different category of land will be included.

58. Among the affected households, 9 households will be affected by homestead land affection only, namely affected by house demolition rather than by other land acquisition. Barren land is unused land owned by village collective. It is mainly rocky slopes along the existing road or river side waste land (pictures in appendix XX) . Expending width by using barren land is very much costly in terms of construction costs but save cultivated land. In the previous road project, it is a common practice in Shaanxi mountainous road that barren land contribution to road construction from village is not compensated. During the field survey, villagers are aware of that and agreed. APs’ concern is concentrated on cultivated land and forest which they have direct use right and income generation potential. The Affected HH identified here are mainly by cultivated land acquisition and forest land.

59. As the land acquisition for road is linear, the number of affected villages is large, but impacts are limited size per village and per household. Of the 11 affected villages, Longguan village has the highest percentage (36%) of households affected while Lijiazhuang has the lowest (1%). Per village cultivated land loss rate ranges from 0.03% in Dongqiao village to 1.38% in Xuejiawan village. In terms of average land loss of affected households, the average is 4.9% (the highest 9.7% in Xuejiawan village while the lowest is 0.4% in Dongqiao village).

Table 2-4: Permanent Land Acquisition Impact Road Tow Affected Before land acquisition After land acquisition n Village No. Cultivat Per HH No. of % of Cultivat Village Per HH of ed land cultivat HH HH ed land cultivat cultivat HH ed land affected affect loss ed land ed land (mu) by land ed (mu) loss loss acquisiti within ratio % ratio % on villag e Anxun Zao Dongwa 307 1127 3.67 45 15 6.31 0.56 3.8 Highw Yang n ay Zaoyang 475 2037 4.29 150 32 26.57 1.3 4.1 Longqua 330 1200 3.64 120 36 12.68 1.06 2.9 n Duan Beian 446 1688 3.78 40 9 12.71 0.75 8.4 jiahe Gaobilia 703 2800 3.98 32 5 11.38 0.41 8.9 ng Xuejiawa 116 2325 2 165 14 32.06 1.38 9.7 n 5 Lijiazhua 647 3400 5.26 9 1 1.73 0.05 3.7 ng Yando Yan Heihu 148 1200 8.11 13 9 9.52 0.79 9 ng ba Tangtai 142 1200 8.45 21 15 10.68 0.89 6 Highw ay Guiping 208 1080 5.19 28 13 8.47 0.78 5.8 Ying Dongqia 453 2745 6.06 35 8 0.78 0.03 0.4 hu o Total 502 20802 4.14 658 13 132.89 0.64 4.9 4 Data source: FS, preliminary Design and field RP survey in July and August 2014.

60. In terms of individual household level land loss rate, among the 658 households affected by LA, 398 households (60.5%) will lose 0-5% of their cultivated land, 190 households (28.9%) will lose 5-8%, 65 households (9.9%) will lose 8-10%, and only 5 households (0.8%) will lose 10-15% of their cultivated land. No household will lose more than 15% land.

Table 2-5: Land Loss Rate Distribution of Affected Households Distribution of cultivated land loss ratio of land- Project Administrative area requisitioned farmer households in the project name (household)

Town Village ≤5% 5—8% 8-10% 10-15% >15% Dongwan 39 6 0 0 0 Zaoyang Zaoyang 102 48 0 0 0 Longquan 93 27 0 0 0 Anxun Beian 35 5 0 0 0 Highway Gaobiliang 11 13 8 0 0 Duanjiahe Xuejiawan 58 57 45 5 0 Lijiazhuang 6 3 0 0 0 Heihu 3 5 5 0 0 Yandong Yanba Tangtai 4 13 4 0 0 Highway Guiping 12 13 3 0 0 Yinghu Dongqiao 35 0 0 0 0 Total 398 190 65 5 0 Proportion % 60.5 28.9 9.9 0.8 0 Data source: Field Socioeconomic survey and RP survey in July-August 2014.

61. For the 5 affected households (with 19 persons) with the land loss rate over 10%, special measures of restoration have been designed. This is outlined in Section 6.5. Overall, the land acquisition impact for this subproject is limited, even at the household level.

2.4 Temporary Land Occupation

62. In the construction scheme, Yandong Highway involves temporary land occupation, including dry land occupation of 29.16mu, and paddy field of 17.45 mu, totaling 46.56 mu cultivated land. Compensation of CNY 1,300 per mu per year will be paid to the affected households directly. After the construction of the project, the land will be fully recovered by the contractors.

2.5 Analysis of Impact of Residential House Demolition

63. The project will involve housing demolition of 11,887m2, including brick-concrete houses of 8,923m2 (75.1%), brick-wood houses of 960m2 (8.1%), earth-wood houses of 1,793m2 (15.1%) and simple structure or makeshift houses of 211m2 (1.7%). All buildings are rural residential houses; there are no urban houses. A total 59 households with 251 people are affected by the demolition. About 70% of the house demolition will be for the Anxun Highway.

Table 2-6: Impact of Demolished Rural Residential Houses3 House demolition (㎡) Brick Road Town Village Brick- Earth- Makeshift Sub- AHs APs - Concrete wood houses total wood Anxun Zao Dongwan 650 80 0 0 730 2 8

3 The house demolition impact (full or partial) will be further verified during the detailed measurement survery (DMS) based updating of the RP when a full census of the affected peoples will be undertaken and an inventory of all losses incurred will be prepared.

House demolition (㎡) Brick Road Town Village Brick- Earth- Makeshift Sub- AHs APs - Concrete wood houses total wood High yang Zaoyang 3270 0 770 0 4040 11 44 way Longquan 1106 0 0 0 1106 4 15 Duanjiahe Duan Gaobiliang 2150 0 80 0 2230 7 25 jiahe Beiyuan 1160 810 160 0 2130 17 64 Subtotal 8336 890 1010 0 10236 41 156 Heihu 0 0 150 0 150 1 4 Yan Yanba Tangtai 76 0 254 126 456 6 27 dong High Guiping 311 27 379 30 747 7 36 way Yinghu Dongqiao 200 43 0 55 298 4 28 Subtotal 587 70 783 211 1651 18 95 Total 8923 960 1793 211 11887 59 251 Proportion (%) 75.1 8.1 15.1 1.7 100 / / Data source: FS report, Preliminary Design and Field RP survey in July-August 2014.

64. Of the 59 house demolition affected households, 19 (32.2%) will lose less than 100m2; 14 households (23.7%) will lose 100~150m2; 10 (16.9%) will lose 151~300m2; 9 households (15.3%) will lose 301~450m2; 7 households (11.9%) will lose over 450m2.

65. Among the HDs, 3 households are potential partial affected by annex toilet or yard fence demolition only. The rest are all entire house demolition. At this stage, all households are treated as full demolition. After demarcation and DMS, if the affected household choosing to stay in the original building, further discussion will be held to find a proper solution.

Table 2-7: Affected Households Distribution by House Size Demolition No. of Households Road 100~150 Subtota <100m2 m2 151~300m2 301~450m2 >450m2 l Annxun 6 12 8 8 7 41 Highway Yandong 13 2 2 1 0 18 Highway Total 19 14 10 9 7 59 Proportion (%) 32.2 23.7 16.9 15.3 11.9 100 Data source: FS report, Preliminary Design and Field RP survey in July-August 2014.

2.6 Impact of Demolished Buildings of Enterprises and Public Institutions

66. There are no buildings related to enterprises and public institutions to be demolished.

2.7 Affected Infrastructure and Ground Ancillary Facilities

67. The project affects toilets, tombs, trees and other 8 categories (refer Table 2-8).

Table 2-8: Affected Ground Ancillary Facilities Anxun Highway Yandong Highway Total Item Unit Quantity Quantity Quantity Livestock pen m2 110 21 131 Brick wall enclosure m2 410 0 410 Toilet m2 8 2 10 Tomb Tomb 26 5 31 Street lamp Unit 15 0 15 Gate Unit 1 0 1 Water well Unit 13 0 13 Electric pole Piece 141 13 154 Electrical cable M 25700 0 25700 Fruited tree Tree 2799 0 2799 Young Timber tree Tree 4332 267 4599 Data source: FS report, Preliminary Design and Field RP survey in July-August 2014.

2.8 Affected Population

2.8.1 Overall affected population

68. A total of 658 households with 2,485 people are affected by the projects, including 599 households with 2,234 people affected by land acquisition only, 59 households with 251 people both land acquisition and house demolition (including 9 household affected by HD with homestead only). No enterprise and public institution is affected by the land acquisition and demolition.

Table 2-9: Affected Population Affected Affected by County Road by LA and Total* LA only HD AHs 520 41 561 Anxun Highway Aps 1922 156 2078 AHs 79 18 97 Hanyin District Yandong Highway Aps 312 95 407 AHs 599 59 658 Total Aps 2234 251 2485 *Overlap Including housing plot land but no other land. Data source: FS report, Preliminary Design and Field RP survey in July-August 2014.

2.8.2 Affected vulnerable groups

69. The vulnerable groups affected by the project mainly include the elderly with no other supporting family members, single-parent families, orphans, family under MLSS, the disabled, poverty families, etc. A total of 36 households of vulnerable groups are affected by the project. See Table 2-10 for the definition standard of vulnerable groups and the number of vulnerable group households. Double counting avoided.

Table 2-10: Affected Vulnerable Groups Anxun Highway Type Definition standard and Yangdong Highway (HH) The poor under MLSS Annual per capita income lower than 7

Anxun Highway Type Definition standard and Yangdong Highway (HH) CNY1560. The Poor Annual per capital income higher than 24 MLSS standard but lower than the poverty line （CNY2,785 in 2014） Single-parent family Single-parent with children under 14 5 years old, family without father or mother Women lead family Family with women as primary labors, 4 without young and middle-aged men labors (18-55 years old) Wubao The elderly over 60 years old without 3 children, relatives and other supporting members The disable Family with the members identified 5 according to national standard of level I or level II disable Family with long-term Family with member losing work capacity 5 patients due to disease or need long-term medical care Subtotal (without 36 double-counting) Data source: Socioeconomic survey and Field RP survey in July-August 2014 All but 2 single parents HH, 1 woman headed HH and 2 HH with long term patient are included either poor or poor under MLSS group. So the total is (7+24)+5=36.

70. According to the survey, poverty causes include aspects of: (1) Harsh living and production conditions due to geographical location, such as high mountain, poor soil, cold and dry weather; (2) low value-added grain dominated production model due to remote geographical location and poor road condition; (3) Lack of skill - limiting access as migrant labor seeking outside non-farming waged jobs; (4) lack of information; and (5) illness or disability.

71. The project will provide additional help to the affected vulnerable households/persons. A special budget for supporting vulnerable group has been reserved in the project resettlement budget. (See Chapter 0 for specific measures).

2.8.3 Project impact on women

72. A total of 1285 (50%) of the affected persons are female. During the field survey, women focus group discussions were held in each surveyed village. Household interviews paid special attention to women. No outstanding negative impacts on women were found. On the contrary, women pointed out that as the women, children and elderly are the majority left behind after men and young people migrate out, the road improvements will particularly benefit them to transport goods to and from market, going to school and travel to clinic and other social service facilities. Travel will be safer, easier, and smoother.

73. In the longer term, women expected the road improvement will stimulate local industrial development and urbanization will bring more local non-farming job opportunities, which will particularly benefit women who prefer both agricultural plantation work and access to some waged jobs.

2.8.4 Affected minority population

74. All the affected villages and towns are Han concentrated area. No ethnic minority population will be affected by the project.

3 Social and Economic Profile of the Project Area

75. The sub-project is located in Hanyin District and Xunyang County of Ankang city. It will affect 4 towns/townships, and 11 villages.

3.1 Socioeconomic Profile of Project Area

3.1.1 Socioeconomic Profile of Ankang City

76. Located in the southeast of Shaanxi Province, Ankang City is in the junction of Sichuan, Shaanxi, Hubei and Chonqing provinces. Bounded by Han River, Ankang City is divided into two regions, Qinling Mountain area in the north and Daba Mountain area in the south. With Han River, Chihe River, Yuehe River as the boundary of Qinling Mountains and Daba Mountain, its landform is characterized by towering high mountains in north and south and basin valley in the middle. Ankang City administers one district and nine counties, totaling 161 towns, 1634 administrative village and 16,386 village groups.

77. Ankang has a total area of 23,534.5 km2 and a total population of 263.36 million (Changzhurenkou4, including floating5in population but excluding floating-out population) with an urban population of 950,000 (36%). In 2013, it achieved GDP of CNY 60.455 billion, with a growth of 13.4% compared to 2012. Therein, the added values of primary, secondary, and tertiary industries amounted to CNY 9.057 billion, CNY 32.140 billion and CNY 19.258 billion respectively. Per capita GDP reached CNY 22,938, an increase of 13.3% over 2012. Annual urban per capita disposable income was CNY 22,533, an increase of 11.0% from 2012. Rural per capita net income was CNY 6,624. The registered unemployment rate in urban area was 3.3%, and the overall level of consumer price increased by 2.7% in 2013.

Table 3-1: Selected Social and Economic Indicators of Ankang City No. Item Unit Ankang 1 Land area km2 23529 1.1 Cultivated land area 10,000mu 2699

2 Population* (Changzhurenkou) 10,000 Person 263.36 2.1 Urban population 10,000 Person 95.00 6 2.2 Non-agriculture population 10,000 Person 49.61 2.3 Rural Population* 10,000 Person 168.36 3 GDP CNY10,000 604.55 3.1 Primary industry CNY10,000 90.57 3.2 Secondary industry CNY10,000 321.40 3.3 Tertiary industry CNY10,000 192.58 3.4 Per capita GDP Yuan/person 22938 4 Urban per capita disposable income Yuan/person 22533 5 Rural per capita net income Yuan/person 6624 * “Changzhurenkou”: The regular population regular lives in the area, excluding floating-out

4 “Changzhurenkou”: The regular population that lives in the area, excluding floating-out population but including floating-in population. 5 Floating population are those who work in the place over 6 months a year but who’s “Hukou” is registered in another place. 6 Non-agriculture population in the traditional urban population refers to those who’s “Hukou” is registered in urban city but excluding floating-in population. Currently the actual urban population is larger than the non-agriculture population in the statistics yearbook.

population but including floating-in population. Source: Shaanxi statistics year book 2013 and PMO.

3.1.2 Socioeconomic profile of Project District and County

(i) Hanyin District

78. Hanyin District is the capital of Ankang prefecture level city located at the southeast of Shaanxi province. Its economic and social development is at the preliminary stage of industrialization. Total land area is 3,652km2 Han River and Yuehe River run through the central area of the district; bounded by Yuehe River, the north part area of the district belongs to Qinling mountainous area and the south part belongs to the Daba Mountain ranges. The major landform of the district includes valley, hills and mountain. Climate in the area is continental monsoon climate with average annual temperature of 15.7℃ and average annual precipitation of 799.3mm. Within the areas, road, railway transport and waterway transport are available. There are Xikang Expressway, Hanbai Highway (national road 316) and a number of Class II highways including Hengye (Hengkou-Yeping) Highway, Anlan (Ankang-Langao) Highway, Hengzi (Hengkou-Ziyang) Highway, Anxun (Ankang-Xunyang) Highway, etc. Yangpingguan- Ankang Railway, Xiangyang-Chongqing Railway and Xi’an-Ankang Railway intersect in Hanyin District, making it an important transportation junction connecting the Northwest, Southwest and Central South regions of China. Waterway transportation mainly on the Han River also plays an important role in this district.

79. Covering a total area of 3,652 km2, Hanyin District administers 22 towns and 318 villages (communities), with total population of 871,300 (Changzhurenkou).

80. In 2013, Hanyin District achieved GDP of RMB 16.303 billion Yuan, with year-on-year growth of 14.6%. Therein, the added value of primary industry amounted to RMB 1.92 billion Yuan, increasing by 5.8%; the added value of secondary industry amounted to RMB 6.89 billion Yuan, increasing by 21.9%; the added value of tertiary industry amounted to RMB 7.493 billion Yuan, increasing by 11.4%. The added values of primary, secondary and tertiary industries respectively accounted for 11.8%, 42.3% and 45.9% in GDP. The per capita total output value reached RMB 18,722 Yuan, increasing by 14.5% than that of last year. The total registered population of the whole district reached 1.0193 million, including agricultural population of 794,100 and non-agricultural population of 225,200. The urban per capita total annual income was CNY 22,115, and the urban per capita consumption expenditure was CNY 15,447; the rural per capita net income was CNY 5,920, and per capita living expenditure was CNY 4,839.

(ii) Xunyang County

81. Xunyang County is one of the nine counties of Ankang City, located at the southeast of Shaanxi Province, and the east section of Qinling-Daba Mountains, with Han River running through. The county is situated in the junction of Han River and Xunhe River. Covering a total area of 3,554 km2, the county administers 22 towns and 318 villages (communities), with total population of 427,300. Its economic and social development is at the preliminary stage of industrialization.

82. In 2013, it achieved GDP of CNY 10 billion, increasing by 13.5% compared to 2012. The total investment in fixed assets was CNY 7.7 billion, an increase of 27%; the total retail sales of consumer goods was CNY 2.314 billion, up by 13.52%; the general financial revenue was CNY 1.634 billion, an increase of 8.78%, the general local budget revenue was CNY 464 million, up by 21.51% in 2013. The industries above a designated scale achieved the output value of

CNY 10.589 billion, an increase of 27.5%; the urban per capita annual disposable income was CNY 22,741, an increase of 10.3%; the rural per capita net income increase by 14.3% to CNY 6,757. Table 3-2: Social and Economic Status of Xunyang County Hanyin District Xunyang No. Item Unit County 1 Land area km2 3652 3554 1.1 Cultivated land area 10,000mu 82.13 67.94 2 Population (Changzhurenkou) Person 87.13 42.73 2.1 Non-agricultural population Person 22.53 5.80 2.2 Agriculture (rural) population* Person 65.40 37.93 3 GDP RMB 100 million Yuan 163.03 100.009 3.1 Primary industry RMB 100 million Yuan 19.2 11.785 3.2 Secondary industry RMB 100 million Yuan 68.9 58.397 3.3 Tertiary industry RMB 100 million Yuan 74.93 29.827 3.4 Per capita GDP Yuan/person 18722 23388 4 Urban per capita disposable income Yuan/person 22115 22741 5 Rural per capita net income Yuan/person 5920 6757 * This rural agricultural population include migrant out labors whose “Hukou” still registered in village. Source: 2013 statistical yearbook of Shaanxi province, Hanyin District and Xunyang County, 2013.

3.1.3 Socioeconomic profile of affected townships

83. The road passes through 4 towns, including Zaoyang, Yanba and Yinghu Town of Hanyin District and Duanjiahe Town of Xunyang County. The total population of the four townships is 138,886 in 38,562 households having a labor force of 75,914. The average household size is 4.2-4.3 people, per capita cultivated land is 1.42-2.00 mu, per capita annual income is CNY 6,500-7,000.

Table 3-3: Selected Socio Economic Indicators of Affected Towns/Townships Agricultu Rural Per re popu. per Cultivat capita No. HH capita Popu Lab ed cultivat Road Town of siz net . or land(mu ed HH e income ) land(mu (CNY/y ) ear) Duanjia 1931 4599 17689 9375 25111 4.2 1.42 6500 Anxun he 6 Highway Zaoyan 2289 9615 4472 81499 134611 4.2 1.65 7000 g 3 1 4 1014 Yanba 2255 8670 4780 13192 4.5 1.52 6700 YnadongHigh 8 way 3878 1703 Yinghu 8815 31028 62058 4.4 2.00 6500 6 5 3856 16440 7591 Total 138886 234972 4.3 1.69 6800 2 1 4 Data source: 2013 statistical bulletin and statistical yearbook of Hanyin District and Xunyang County, field resettlement survey July-August 2014.

3.1.4 Socioeconomic profile of affected villages

84. The project road traverses 11 administrative villages of the 4 affected townships. The conventional agricultural crops are mainly corn, wheat, etc. According to the survey, the affected villages are mainly along the existing road to be reconstructed. Benefiting from economic development of Hanyin District, capital of Ankang prefecture level city, and Xunyang County, its non-farming economy developed very fast. Agriculture is no longer the major industry. The income source of villagers in the project area mainly comes from secondary and tertiary industry.

Table 3-4: Selected Indicators of the Affected Villages Per Rural net Town/ Cultivat HH Village Pop Labo capita income Road Townshi HH ed siz u. r cultivate (CNY/person/ye p land(mu) e d land ar) Dongwan 307 1137 800 1127 3.7 1.0 7000 Zaoyang Zaoyang 475 1937 800 2037 4.1 1.1 7241 Longquan 330 1320 600 1200 4.0 0.9 6500 Beian 446 1602 905 1688 3.6 1.1 6527 Anxun Gaobilian 703 2680 1425 2800 3.8 1.0 6958 Duanjia g Duanjiaw 116 he 3093 1219 2325 2.7 0.8 6800 an 5 Lijiazhuan 647 2348 1285 3400 3.6 1.4 6030 g Heihu 168 746 217 1200 4.4 1.6 4780 Yandon Yanba Tangtai 142 560 210 1200 3.9 2.1 5300 g Guiping 208 890 310 1127 4.3 1.3 4100 Yinghu Dongqiao 453 1948 987 2037 4.3 1.0 5985 504 1826 Total ∕ 8758 20141 3.6 1.1 6111 4 1 Data source: 2013 statistical bulletin and statistical yearbook of Hanyin District and Xunyang county.

3.2 Socioeconomic Profile of Affected Households

3.2.1 Sample survey

85. Of the 658 households (2,485 persons) affected directly by the project, 123 households (509 persons) in six villages, or 25.3% of all AHs were sampled during the field survey. Table 3-5 has the sample household distribution. Out of the 658 households, about 30% are poor based on the Shanxi provincial poverty line of annual income CNY2785 per person.

Table 3-5: Sample Household Distribution by Road, Town and Village Number of Sample Sampling Road Town Village affected proportion Number of households Population (%) households Zaoyang Zaoyang 150 20 79 13.3% 83 16.7% Anxun Longquan 120 20 Highway Xuejiawan 30 20 79 66.7% Duanjiahe Gaobiliang 125 20 83 16.0%

Number of Sample Sampling Road Town Village affected proportion Number of households Population (%) households Yandong Yanba Guiping 35 21 92 60.0% Highway Tangtai 27 22 93 81.5% Total 3 6 487 123 509 25.3% Sources: Field resettlement survey in July- August 2014.

3.2.2 Nationality and gender

86. The 123 sample households have a total population of 509, a total labor force of 255 and an average population of 4.14 per household. There is no minority nationality; out of surveyed population, 46.3% of the total surveyed population are female, who are mainly engaged in agriculture, housework and other production activities.

3.2.3 Age structure

87. Among the 509 sample people, 94 are under 16 years (18.5%), 165 are at the age of 16- 39 years (32.4%); 184 aged from 40-59 (36.1%); and 66 people over 60 (13%). See Chart 3-1 illustrated the age structure.

Figure 3-1 Age distribution structure

3.2.4 Education background

88. Of the surveyed households, 93 people have received no education (18.2%), 281 primary or below education (55.2%); 128 people received junior high school education (25.2%); 7 people received senior high school or technical secondary school education (1.4%); zero people had received junior college or above education. Chart 3-2 illustrated the education background of sample people.

Figure 3-2: Distribution of education 3.2.5 Housing size

89. The sampled houses are of masonry brick-concrete or earth-wood structure mainly, with a total housing area of 21,736 m2, or 177 m2 per household on average and 43 m2 per capita. 29 households (20.3%) have an area less than 100 m2; 48 (33.5%) households with an area of 100-150 m2; 35 households or 24.5% with an area of 151-300 m2; 19 or 13.3% with an area of 301-450 m2; and 12 households (8.4%) with an area over 451 m2.

3.2.6 Cultivated land resource

90. Of the surveyed households, per household cultivated land is 5.1 mu and per capita cultivated land is 1.23 mu. The cultivated land mainly refers to plain dryland and sloping dryland and the major crops are corn and wheat, with yearly net return of about CNY 500 per mu. There are 24 households (19.5%) with per capita cultivated land of less than 0.5mu; 37 households (30.1%) with 0.5-1.0 mu; 37 households (30.1%) with 1.1-1.5 mu, and 25, or 20.3%, with more than 1.5 mu.

3.2.7 Household income and expenditure

1) Annual household income

91. The surveyed households have an average annual income of CNY 13,874.5, of which agricultural forms CNY 4,405.4 per household, or 24.1%. The remaining income is mainly migrant waged job (65.3%) and non-farming operation income (4.2%) such as wholesale and retail shops, restaurant, transportation operation, repair services, processing and manufacturing, poverty relief funds (0.4%) and other non-agricultural income such as property income (6.0%). Cultivated land rental is about CNY 200-300 per mu where convenient transport and irrigation are available. A more common practice is that for whole households have migrated out, land is lent to relatives to use without charge. In total, per capital annual net income is CNY4415.2 Agriculture is no longer the main income source of the surveyed rural households. This is consistent with the local industry structure where women are engaged in agriculture as well as manual manufacturing and men work in factories or go out for non-farming jobs.

92. Group discussions and village leader interviews held during the social impact survey revealed that about 20% of householder’s income is dominated by non-farming. Most of these households either have members who are employed full time in schools, hospitals, large state- owned enterprises, large private companies and government, or are running their own businesses e.g. restaurant, transportation, wholesaler, construction and decoration etc. Some of the households as a whole family have migrated to the city as migrant labor and keep “Hukou” in village. About 60-70% of the households have their main income from non- farming sources (e.g. local wage jobs of construction, seasonal migrant labor, or a small local business of buying and selling, construction and decoration, repair etc.) and have small proportion of income from agriculture plantations. Only 10-20% of the households rely mainly on plantations or government subsidy. Most of them are the poor often as a result of elderly, disabled, illness of family member, lack of skills to be involved in waged jobs, or are responsible for taking care of young/older/illness family members.

93. During the village leader interviews and group discussions, it is estimated that the better- off households account for 10-20% of the total households in a village, which either have permanent non-farming employment or are running business locally. The middle-level income households account for 60-70% with migrant labor as the main income source. The relatively poor households account for 10-20%, which include the elderly, disabled, illness of family member.

Table 3-6: Income Structure of Surveyed Households

Per household Per capita Proportion Income source income income (%) (CNY/Year) (CNY/Year)

Income from selling grain 219.4 53.0 1.2 Income from selling economic 2888.2 697.6 15.8 crops Income from selling fresh fruit and dried fruit 237.6 57.4 1.3 Income from selling domestic animal, poultry and fish 146.2 35.3 0.8 Agriculture income from selling fungus and medical materials 603.2 145.7 3.3

Cash income from selling other agricultural products 310.8 75.1 1.7

Subtotal 4405.4 1064.1 24.1

Wholesale and retail shops 182.8 44.2 1.0 Restaurant 201.1 48.6 1.1 Transport Non- agriculture 255.9 61.8 1.4 Repair service 109.7 26.5 0.6 Processing and manufacturing 18.3 4.4 0.1

Per household Per capita Proportion Income source income income (%) (CNY/Year) (CNY/Year)

Migrant wages 11936.8 2883.0 65.3 Land acquisition compensation 0.0 0.0 0 Poverty relief funds 73.1 17.7 0.4 Other non-agricultural income 1096.8 264.9 6.0 subtotal 13874.5 3351.1 75.9

Total 100 18279.9 4415.2

2) Annual family expenditure

94. The per household total annual expenditure is CNY 17,642, including daily living expenditure of CNY6262.9 (35.5%), education and medical & health expenditure of CNY 3,757.7 (21.3%), transportation, communication and other social events expenditure of CNY 2,858 (16.2%); Production expenditure of CNY 4,445.8 (25.2%); other expenditure of CNY 317.6 (1.8%).

Table 3-7: Expenditure Structure of Surveyed Households

Per household expenditure Per capita expenditure Proportion (CNY/ year) (CNY/ year) （%）

Living expenditure 6262.9 1512.7 35.5 Education 2575.7 622.1 14.6 Medical and health 1182.0 285.5 6.7 Transportation 405.8 98.0 2.3 Communication 229.3 55.4 1.3 Social intercourse 2222.9 536.9 12.6 expenditure Productive expenditure 4445.8 1073.8 25.2 Others 317.6 76.7 1.8

Subtotal 17642 4261 100% Sources: Field resettlement survey and social impact survey, July-August, 2014.

3.2.8 Willingness of people to relocate

95. A survey of relocated people’s willingness has been conducted and the results are shown in Table 3-7 and Table 3-8.

1) Willingness of the LA affected Households

96. Although the project design documents indicated that very few households will be seriously affected by land acquisition, a significant number of 100 potential LA affected household are identified. The survey found: (i) Awareness: 94% of surveyed households are aware the road is going to be reconstructed, 4% are not quite clear about the project and 2% know nothing about it. (ii) Attitude: 95% of surveyed households support the project construction, and 5% do not care about it. None of them disapproved of it. (iii) Resettlement mode: 50 surveyed households are not willing to continue in agriculture anymore; 65% are willing to be given non-agricultural status; 100% are willing to participate in social insurance for LEF; and 93% are willing to receive technical training.

Table 3-7: Public Opinion Survey on Land Acquisition Selection proportion of the opinions of the affected No. Questions Answers households (%) 1 2 3 Total Do you know the project will be (1) Yes (2) Not quite 1 94 4 2 100 constructed? clear (3) No Do you approve the project (1)Yes (2)No (3) I 2 95 0 5 100 construction? don’t care a) Nation (1) Yes (2) 100 0 \ 100 No Who do you think can benefit b) Collectivity (1) Yes 3 from the project? (multiple 100 0 \ 100 (2) No choices) c) Individual (1) Yes (2) 95 5 \ 100 No Do you know the compensation 4 (1) Yes (2) No 90 10 \ 100 policy for land acquisition? Do you accept the land 5 acquisition for supporting the (1) Yes (2) No 75 25 \ \ project? Are you willing to continue 6 (1) Yes (2) No 50 50 \ \ farming after land acquisition? Are you willing to be given non- 7 agricultural status after land (1) Yes (2) No 35 65 \ \ acquisition? Are you willing to work in 8 enterprises or work for others (1) Yes (2) No 93 7 \ \ after land acquisition? Are you willing to do business 9 (1) Yes (2) No 48 52 \ \ after land acquisition? Are you willing to participate in 10 social insurance after land (1) Yes (2) No 100 0 \ \ acquisition? Are you willing to receive 11 technical training after land (1) Yes (2) No 93 7 \ \ acquisition? Do you know you can lodge a 12 complaint when your lawful rights (1) Yes (2) No 90 10 \ \ and interests are violated? Sources: Social and Resettlement Surveys.

2) Willingness of the Relocation affected households

97. Of the total 59 potential HD affected households, 30 were surveyed (50.9%). The findings show: (i) Awareness: 93.3% households are aware of the road is going to be reconstructed and 6.7% are not quite clear about the project. (ii) Attitude: 90% households support the project construction, and 10% do not care about it. None of them disapprove it. (iii) Concern: 40% were concerned about the housing location; 20% concerned whether they would receive preferential funds for new housing; 10% concerned about size and type of house; 10% were concerned about the transparency of the house/housing site selection process; 20% concerned about the price of house plot/house. (iv) Compensation Mode: 40% surveyed households required cash compensation, 50% required allocation of housing land for resettlement, 10% agree to select constructed house under new rural development residential area for resettlement.

Table 3-8: Public Opinion Survey on House Relocation Selection proportion of the opinions of the affected No. Problems Answers households (%) 1 2 3 4 5 Total Do you know the (1) Yes (2) Not quite clear (3) 1 project will be 93.3 6.7 0 100 No \ \ constructed? Do you approve the 100 2 (1)Yes (2)No (3) I don’t care 90 0 10 \ \ project construction? Who do you think can a) Nation (1) Yes (2) No 100 0 \ \ \ 100 benefit from the 3 b) Collectivity (1) Yes (2) No 93.3 6.7 \ \ \ 100 project? (multiple choices) c) Individual (1) Yes (2) No 86.7 13.3 \ \ \ 100 Do you know the compensation policy 100

4 for land acquisition (1) Yes (2) No 90 10 \ \ \ and House demolition? Do you accept the land acquisition and 100

5 house demolition for (1) Yes (2) No 93.3 6.7 \ \ \ supporting the project? Selection of (1) cash compensation（2） 100 6 resettlement mode for dedicated by land （3） 40 50 10 \ \ housing resettlement by unified housing What area of unified 100 7 (1) 120-150㎡ (2) Others 86.7 13.3 \ \ \ housing? Where is the (1) Local group; (2) Local village/ 100 8 80 10 10 \ \ resettlement location? commune; (3) Local town Do you know you can lodge a complaint 100 9 (1) Yes (2) No 50 50 \ \ \ when your lawful rights and interests

Selection proportion of the opinions of the affected No. Problems Answers households (%) 1 2 3 4 5 Total are violated? (1) Housing location;(2) Preference and compensation What problems do you that can be obtained; (3) Area concern about 10 and type of housing; (4) Public 40 20 10 10 20 100 demolition and and transparent site/ house resettlement? selection mode; (5) Price of land/house Sources: Field Resettlement survey, July-August 2014.

3.3 General Situation of the Affected Enterprises and Public Institutions

98. The survey shows that there are no affected enterprises and public institutions.

3.4 Women’s Development in Project Area

3.4.1 Rural women profile in project areas

99. The proportion of female population was 53.2% and 53.2% in Hanyin District and Xunyang in 2012, of which the majority were rural women accounting for about 65% of total female population. Women are playing important roles both in agricultural sector as well as rural household development.

100. Based on the PPTA social impact survey, there are differences in the education level between women and men. Specifically, 20.9% of female respondents are in the no-schooling category, higher than male respondents (11.7%). Similarly, female respondents with 7-9 years of education (24.6%), is lower than for males (38.8%), and female respondents with 10-12 years of education (3.7%), is lower than for males (7.0%). However, 43.3% female obtained primary education, higher than that of men (38.3%).

101. The majority of respondents were farmers with 63.4% of females and 59.3% of males being engaged in agriculture on their farmland. Both long-term and seasonal migrant laborers were mostly men. 8.9% of males were engaged in the long-term migrant labor compared to 4.5% for women. 18.2% of men were seasonal migrant labors against only 5.2% of women. Women were often left at home both for cultivating household land and taking care of household members.

102. Women were 100% responsible for household work. The survey indicated that there were slightly more females running small businesses than men. However, of the respondents, only 1.5% of females were village cadre compared to males (4.7%), indicating that women’s participation in decision-making at village level was lower than for men.

3.4.2 Women’s roles in household livelihoods

103. Among surveyed villages, women and men are involved in not only agricultural activities but also non-agricultural practices. Women and men have different roles in agricultural production practices. Males usually dominate ploughing and clearing activities, while females are more engaged in transplanting and weeding. Both women and men take part in activities

such as fertilizing, harvesting and raising pigs. Tending poultry feeding is solely a woman’s activity.

104. It is very common for both females and males to be involved in income-generating activities. Among middle-aged groups, more males are long-term as well as seasonal migrant labors compared to women. Whereas more women are left at home to undertake agricultural practices as well as to look after their household members such as children and elderly.

105. Women exclusively perform household work in addition to their agricultural work. Their roles are cooking, washing and care of small children and elders in their households.

106. Men contribute more to cash income generation in the household, and women’s roles tend to be in household maintenance like growing corn and grain, raising animals for household consumption rather than for selling purpose. Looking after children is the woman’s domain. Some interviewed women (36 females) reported that they are living in rented houses in the town to look after their school children. They no longer cultivate their land in the village. The household expenditures were fully met from their husbands’ non-farm earnings.

3.4.3 Decision-making at household and community levels

107. Females headed less than 10% of surveyed households. Men dominated decision- making at household level. Couples jointly discuss agriculture production activities such as planting, crop selections, seed purchases, fertilizer and equipment/tools. In many cases, women’s voices are heard during the discussion process but men make final decisions.

108. Men dominate decision making on household investments such as buying vehicles, running small shops or building new houses. The interviewed villagers indicated that men have more opportunities to go outside than women and therefore have more experience and knowledge with which to make decisions.

109. Men also dominated with respect to decision making on renting out land and on borrowing and lending money. These are very important household decisions and are definitely the responsibility of household heads.

110. Men and women equally share decision-making on household saving and buying durable consumables such as TVs, furniture, washing machines and electronic cookers. Women dominate decisions on purchase of daily consumables.

111. The participation of women in community decision-making is still much less than for men because there are the fewer women members in decision-making bodies of communities. Among 17 surveyed villages, only 7 villages have female members in village committees. Women’s participation in community management include organizing traditional festivals, special occasions like marriage ceremonies and funeral activities, attending community meetings in the absence of men, and contributing labor for public works such as village road routine maintenance and irrigation repair.

3.4.4 Women’s transport needs

112. The women’s role in the household shapes their transport patterns, frequency of women’s mobility and travel costs. Women’s transport activities are different from men’s since women often have the primary responsibility for transporting goods to and from market, and for

accompanying children and elders to hospital, and for seeking job opportunities to meet increasing cash demand of households.

113. Women have similar transport needs to other social groups. Due to their higher level of domestic responsibility, women assign greater importance to transport that is easier, faster, and safer and provides more mobility, as this in turn provides more home time for productive work. Women also expect more buyers to come to the village, which would in turn further reduces travel time and thus saves more time. Specifically, women are more reliant on public transport and prefer safe and regular public transports with fixed fares.

3.4.5 Project Impacts on Women

114. The Project will bring benefits equally to women and other social groups through improvement of road safety facilities, trunk road rehabilitations and particular rural road upgrade. Shorter travel time on roads is beneficial to them, as it increases mobility, and allows more productive use of time.

115. Women are primarily local travelers for buying home consumption goods and selling produce, sending and picking up small children to and from school, traveling for health purposes, and more frequently accompanying family members to hospital. Accessing better roads, thereby, will provide them easier, faster and safer travel.

116. Public or private transport operators will be more willing to provide services when the road condition and road safety is improved. This could increase the potential for young women to travel outside the village to seek employment. Specifically, availability of public transport services, which are their primary means of travel, is important to women.

117. The trunk road rehabilitations could have potential negative impacts on women in terms of land acquisition and resettlement due to housing demolition if these issues remain unaddressed. These vulnerabilities of women resulting from land acquisition or relocation have been addressed in this RP. First, women are often in a disadvantaged position at labor markets due to lower education levels or (traditional) gender bias that might lead to less income or fewer job opportunities for them after land loss, compared to men. For example, at local labor markets, a skilled man can earn CNY 150-200 per day against CNY 100-120 for a skilled woman for the same work. The wage for an unskilled man is CNY 100-120 per day versus CNY 80-100 per day for an unskilled woman. Second, women’s needs or interests tend to be ignored during public consultation and participation since few women can voice their opinions in public and/or fewer women are invited to attend consultation meetings, for example, consultation on selection of resettlement sites. Third, a woman’s burden might be increased because the resettlement site might be far away from farmland that might keep her busier between household work and land related activities. Relocation may also increase the distance between school or hospital and home, which would increase her travel time. Later on relocation options offered by local government indicated that several alternative options ensured each household could select an option which best fit their own situation. AHs who choosing rebuild the house in the nearby area will not face such issue, AHs who choosing concentration site will not face such issues too because the offered sites are more convenience in terms of accessing school, hospital and other service facilities.

118. To facilitate livelihood restoration for affected women, various skill-training programs will be provided through a number of ongoing government initiatives. According to women’s needs, relevant training courses such as housekeeping and handicrafts should be introduced to women

through Women’s Federation, or the Human Resources and Social Security Bureau with close cooperation with the Project sponsor. Provision of jobs to women will be prioritized during project construction.

119. All the above measures have been included in the Social Development Action Plan (SDAP), which has been extensively discussed with project sponsor. The DAP addresses women’s needs and ensures women will benefit equally by the Project and the negative impacts are mitigated.

3.4.6 Measures in RP in facilitating women’s development

120. Participation and consultation: separate consultation meetings and focus group discussions have been undertaken in each surveyed village. These were very helpful for women to voice their particularl needs on road safety, compensation modes, concerns over compensation standards, etc. Women’s needs, comments and suggestions on the project have been documented and incorporated in the RP. For example, training needs of handicraft, landscaping, seedling producing and fruit tree caring, suggestions of road safety measures around the village and community based road safety education, particularly for children.

121. Women show stronger desire for project participation and most of them expressed willingness to take part in the project activity in their free time. They also expressed desires to be informed about the project job opportunities.

122. In terms of compensation on LA and HD, women are not worried about their rights. The national laws and regulations guarantee that women have equal rights on land use rights and house property legal rights. All households constructed or purchased during marriage automatically have shared-ownership between the couple, regardless of how or to whom the property was registered.

4 Legal Framework and Policies

4.1 Overview of Relevant Laws, Regulations and Policies

123. The resettlement policies of this project are based on ADB’s policies and on the laws and regulations of the People’s Republic of China (PRC). These are as follows.

124. The relevant ADB policy is:  ADB Safeguard Policy Statement (2009).

125. Safeguard requirement 2: Involuntary Resettlement

4.2 The PRC’s Laws and Regulations on Land Acquisition and Relocation

126. The PRC relevant laws and regulations include the following:

(1) The Land Administration Law of the People’s Republic of China

127. (Amended at the Eleventh Session of the Standing Committee of the Tenth National People’s Congress on August 28, 2004; and effective as of then).

128. Main contents: formulations on land ownership, overall land use plan, cultivated land protection, land for construction, supervision and inspection, legal responsibility, including land expropriation compensation, subsidy standard for relocation, and manner of relocation of relocated people.

(2) Regulations on the Protection of Basic Cultivated Land

129. (No.257 Decree of the State Council of The People’s Republic of China on December 27, 1998).

130. Main contents: in line with Agriculture Law of the People’s Republic of China and the Land Administration Law of the People’s Republic of China, concrete formulations for the country’s protection of basic cultivated land, including delimitation, protection, supervision and management, legal responsibility, etc.

(3) Interim Regulations on Cultivated Land Use Tax of the People’s Republic of China

131. (No. 511 Document of the State Council issued on December 1, 2007 and effective on January 1, 2008).

132. Main contents: formulations about tax contribution standard and contribution range of state construction occupied cultivated land.

(4) Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28)

133. Main contents: In order to use the land properly, to protect the legal rights of the farmers whose land is expropriated, to maintain social stability, and to perfect the land expropriation and resident relocation system, the decision puts forward the guiding principle and way to perfect

the compensation of land expropriation. The decision requires all the county, city and province governments to take effective measures to ensure that farmers’ living standards will not decrease after their land is expropriated, and that according to laws in force, the land compensation, relocation compensation, ground ancillary facilities and young crop compensation are paid in full and in time. If after the payment of land compensation and relocation compensation in accordance with the laws in force, the farmers whose land has been expropriated cannot maintain their original living standard and their social safeguards cannot be paid, the province, autonomous region and/or municipality government should agree to provide further relocation compensation. If the sum of land compensation and relocation compensation reaches the legal upper limit, but the farmers whose land has been expropriated cannot maintain their previous living standard, the local people’s government can offer subsidy with the state-owned land income. The government of province, autonomous region and/or municipality should work out and promulgate the standard of output value or price of land. The land expropriation should be the same price for the same land. National key construction projects should incorporate the expense of land expropriation into its budget.

(5) Notice on the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of China (November 3, 2004, Guotuzifa [2004] No. 238)

134. The main contents: to put forward how to carry through The Decision of the State Council on Deepening the Reform and Strictly Enforcing Land Administration especially aiming at some problems during the land expropriation compensation and relocation system. There are two aspects: (i) To formulate unified annual output value standard. The provincial land and resources administration along with relevant agencies works out the minimum unified annual output value of every county in the province, then announce and carry out it after the approval of the province government. The workout of unified annual output value standard should consider the type and quality of expropriated land, the investment on the land, the price of agricultural products, the grade of land, and so on. (ii) To affirm unified annual output value multipliers. The unified annual output value times of land compensation and resettlement subsidy should ensure the farmers whose land is expropriated remain at a standard no lower than before and be worked out within the legal limit. According to the legal unified annual output value times, if the land compensation and resettlement subsidy couldn't ensure that the peasants whose land is expropriated can’t maintain the original living level or pay for their social security, the times can be increased after the approval of provincial government. If the sum of land compensation and resettlement subsidy is 30 times of the unified annual output value, the farmers whose land is expropriated still couldn't remain at the original living standard, the local government can provide subsidy from the state-owned land income. If the basic farmland is expropriated by the legal approval, the land compensation should be carried out according to the highest compensation standard announced by the local government.

(6) Real Property Right Law of the People’s Republic of China (Order of the People’s Republic of China No. 62, in effect as of October 1, 2007)

135. Main contents: In accordance with the Constitution Law, the present Law is enacted with a view to maintaining the basic economic system of the state, protecting the socialist market

economic order, clearly defining the attribution of the property, utilization of property, and safeguarding the real right of the right holder. The civil relationships incurred from the attribution and utilization of the property shall be governed by the present Law.

4.3 Relevant Policies of Shaanxi Province and Hanyin/Xunyang District/County

(1) Regulations on the Implementation of the Land Administration Law of the People’s Republic of China of Shaanxi Province (adopted at the Twelfth Session of the Standing Committee of the Ninth Provincial People’s Congress on November 30, 1999, and effective on January 1, 2000)

136. Main contents: in line with the Land Administration Law of the People’s Republic of China, and the reality in Shaanxi Province, concrete formulations on the land administration in Shaanxi Province.

(2) Regulations on Land Acquisition for Construction Project of Shaanxi Province. No.78 document issued and effective as of January 8, 2002 by Shaanxi Provincial People’s Government

137. Main contents: to regulate the land acquisition in Shaanxi Province. According to The Land Administration Law of the People’s Republic of China and Regulations on the Implementation of the Land Administration Law of the People’s Republic of China of Shaanxi Province, the regulations put forward the principal and method for Shaanxi Province construction projects to protect, explore and use land reasonably, and to guarantee construction land environment and to balance the land use and the land reclaim.

(3) Notice on the Average Standard of Unified Annual Output Value and Section Comprehensive Land Price on Land Acquisition in Shaanxi Province [No. 36 Shaanzhengbanfa (2010)]

138. Main contents: standardize the compensation criteria for unified land acquisition in Shaanxi, and make correction for the policies on different price of the same land, imbalance of the regions and low compensation criteria during land acquisition.

(4) Supplementary Notice on Related Issues on the Center of Ankang City Construction Land Acquisition and Demolition and Farmers Affected by Land Acquisition Old-age Insurance (An Zheng Fa (2009) No. 15)

139. Main contents: to regulate the procedure of construction land acquisition, compensation standard of land acquisition and ground attachment, compensation standard of demolition and relocation, resettlement and farmers affected by land acquisition old-age insurance in the center Ankang City, etc.

4.4 ADB’s Policy Requirements on Involuntary Resettlement

140. ADB involuntary resettlement safeguards covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary.

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

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

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

4.5 Differences of ADB’s and Local Policies

4.5.1 Compensation and resettlement for house

143. Difference: ADB policies require that compensation is based on replacement cost. Chinese laws accept that depreciation is reasonable, and the compensation rate for the old structure should be lower than that for new housing.

144. Solution: Compensation rates in all ADB-financed projects are based on replacement cost.

4.5.2 Compensation and resettlement for land

145. Difference: ADB policies require that compensation should be sufficient to offset any income loss, and restore long-term income-generating potential. Chinese standards are based on AAOV.

146. Solution: An early stage solution is to provide replacement land, which is hardly practical. Cash compensation is the preference of most people, though they cannot ensure the rational use of such compensation. Therefore, further technical support is needed to monitor the income of seriously affected households; especially those in vulnerable groups, and local governments should provide assistance to those in need.

4.5.3 Compensation and resettlement for vulnerable groups

147. Difference: Difference: ADB policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with impoverishment. Chinese provisions do not require social analysis, and compensation is based only on the amount of loss.

148. Solution: Special funds are available to assist the vulnerable groups, who will be further identified during the DMS. All measures have been specified in the RP. For seriously affected households the RP includes specific provisions.

4.5.4 Consultation and disclosure

149. Difference: ADB policies require APs are fully informed and consulted as soon as possible. Chinese provisions have improved the transparency of disclosure and compensation. However, APs still play a weak role in project decision-making, and the disclosure period is usually too short.

150. Solution: Consultations have begun at the early stage (before and during technical assistance). Shaanxi Provincial Communication Bureau and the Xunyang Government agreed to disclose the RP to APs as required by ADB.

4.5.5 Lack of legal title

151. Difference: ADB policies require all demolished houses, whether lawful or not, should be compensated for at the same rates. According to Chinese laws, people without local registered residence are entitled to the same compensation as local people. In addition, prevailing Chinese laws stipulate that no compensation should be provided for the acquisition of illegally owned land and houses.

152. Solution: For an ADB financed project, all APs, whether lawful or not, whether having ownership or right of use, will be protected, and provided with compensation or assistance.

4.5.6 Resettlement monitoring, evaluation and reporting

153. Difference: ADB requires internal and external resettlement monitoring. However, laws of China have no such requirement except projects for reservoirs.

154. Solution: Follow the ADB requirements, Internal and external resettlement monitoring systems have been established for all ADB financed projects, and this has been included in the RP. The requirements for internal and external monitoring reporting are specified in the RP.

4.6 ADB Policy on Gender and Development

155. ADB’s Gender and Development Policy is a critical mainstreaming strategy in promoting gender equality, and includes the following key points: (i) Gender sensitivity: Particular attention should be paid to women’s needs and expectations in consideration of impacts of the ADB-financed project on men and women; (ii) Gender analysis: A systematic analysis of the project’s impacts on men and women should be made to learn their economic and social connections; (iii) Gender planning: A special strategy that offers equal opportunities to men and women should be developed; and (iv) Mainstreaming: ADB considers the gender issue in all aspects of the project, and encourages women to participate in decision-making in the development process actively.

5 Compensation Principle and Entitlement

5.1 Resettlement Principles

156. The principles for compensation and entitlement of the Project have been developed in accordance with the regulations and policies of the PRC and ADB, with the aim of ensuring that APs obtain sufficient compensation based on replacement cost and assistance so that their production and livelihoods are at least restored to pre-project levels. Table 5-1 presents the resettlement principles.

Table 5-1: Resettlement Principles of the Project No. Principle 1 Involuntary resettlement should be avoided where feasible. 2 The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the project. The rate of compensation for acquired housing, land and other assets will be calculated at full replacement costs. 3 The APs are given compensation in full replacement cost and assistance in resettlement whether legal title is available or not. 4 If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities are provided for the lost land. 5 The IA will ensure that APs fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the RP. 6 The IA will ensure that no physical displacement or economic displacement will occur until (i) compensation at full replacement cost has been paid to each AP for project components or sections that are ready to be constructed; (ii) other entitlements listed in the RP have been provided to APs; and (iii) a comprehensive income and livelihood rehabilitation program, supported by an adequate budget, is in place to help APs improve, or at least restore, their incomes and livelihoods. 7 Vulnerable groups are provided special assistance or treatment so that they lead a better life, and all APs should have an opportunity to benefit from the project. At least two members of each AH receive skills training, including at least one woman. 8 The resettlement plan should combine with the overall planning of county/ city/ district. 9 If feasible, changing from “agricultural to non-agricultural” status can be provided to LEF on a voluntary basis. 10 All resettlement cost is included in the project budget and sufficient to cover all affected aspects. The fund needs to be paid in time. 11 The IA and an external monitoring agency will monitor and measure the progress of implementation of the RP and will prepare monitoring reports to ensure that the implementation of the RP has produced the desired outcomes.

5.2 Cut-off Date of Compensation

157. The cut-off date for the eligibility for compensation is on June 30, 20157 and Hanyin District People’s Government confirms the date of relocation plan. Any newly claimed land, newly built house or settlement in the project area by the APs after this date is not entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation is not counted in the inventory of losses.

7 The effective date for resettlement eligibility based on the detailed measurement survey (DMS) based census of APs and preparation of a full inventory of losses. This will be based on the final design of the project component. The anticipated date of DMS commencement is June 30 2015.

5.3 Compensation Rate for Permanent Land Acquisition

158. According to the Shaanxi Land Acquisition Policy (Shaan Zheng Ban Fa[ 2010] No.36)， in the project county Xunyang area, the unified AAOV and compensation multiple of Hanyin District and Xunyang County determined in accordance with Shaanxi land acquisition policy, the unified AAOV of irrigated land is CNY1,197 in the subproject area, and the compensation multiple is 25, and therefore compensation standard is CNY 29,928 per mu. However, in the Supplementary Notice on Land Acquisition and Demolition for Ankang Central City Construction and Land-requisitioned Farmers’ Endowment Insurance (An Zheng Fa [2009] No.15), the compensation standard (including compensation for land and resettlement subsidy) for cultivated land (dryland) has increased to CNY 54,000 per mu. In order to benefit the affected households, this RP takes the compensation policy of Ankang city (An Zheng Fa [2009] No.15) as the resettlement policy basis to employ the higher compensation standard (CNY 54,000 vs CNY 29,928).

159. However, the Ankang City policy (An Zheng Fa [2009] No.15) does not define the compensation rate for a housing lot. This RP added the following contents to the compensation standard for housing plot, as follows:

160. According to the provision of Measures for Implementation of the Law of Land Administration of the People’s Republic of China in Shaanxi that the compensation for other land is 1-4 times AAOV of middle level cultivated land of local county (city, district), the compensation standard for the housing land and construction land of the project shall not exceed the legal limit – six times the unified AAOV of the project area. However, during the field consultation, the APs pointed out that this policy was made a long time ago so the rate cannot reflect the practical market value of the housing site. Based on the provision of Decision on Deepening the Reform and Conducting Strict Land Administration by the State Council (Guo Fa [2004] No.28) that “if the land compensation and resettlement subsidy paid in accordance with the current legal provision cannot help maintain the original living level of the land-requisitioned farmers and the affected farmers cannot pay the social security fees for losing land due to the land acquisition, the people's governments of province, autonomous region or municipality shall approve the increase of resettlement subsidy”, this RP therefore determines that the compensation for housing lot or homestead will be equal to 90% of compensation standard for cultivated land, namely, CNY 48,600 per mu as the project standard for rural housing lot.

161. Table 5-2 has summarized the compensation standard for land acquisition of this RP by land category.

Table 5-2: Compensation Standard for the Project Land Unit (CNY/mu) Slopin Plain Paddy g Home- Forest Barren Category Drylan Others field Drylan stead land land d d Compensation No 60,000 54,000 45,000 48,600 22,500 18,000 standard compensation Sources: Hanyin District and Xunyang Government.

5.4 Compensation Rate for Temporary Land Occupation

162. The compensation rate for temporary land occupation is CNY 1,300 per year. Full recovering policy will be applied after project completion. Occupation will be for a maximum of 2

years and the land will be restored to its pre-occupation standards prior to its redistribution to the owners.

5.5 Compensation Rate for House Demolition

163. The compensation for all houses demolished will follow the following principles. (i) Full replacement costs without depreciation: House demolition will be compensated at replacement costs. Table 5-4 has the details costs estimation based on the local house construction practice by type. The affected persons shall receive full replacement price without depreciation for the original house. Meanwhile, the affected people can use the building materials of the original house free of charge/cost. (ii) Various voluntary replacement choices available: The affected household can choose scattered settlement by providing similar condition of individual housing site, or choose concentrate settlement by participating in new rural construction scheme or other planning construction projects of the government, or self-settlement by using cash compensation. (iii) No demolition prior to new house ready/or agreement on new house plot/apartment units signed: No house demolition will commence prior to the new house constructed. The affected households will obtain transition compensation prior to moving to the new house. In case of some household facing difficulties of moving, village committee and the PMO will provide assistance of transport. For those household facing difficulties to find transition house, the village committee and PMO will provide assistance in renting.

164. The compensation base price adopted in this plan is listed in Table 5-3. It is discussed with the affected people and local PMO and match to the current local market price of replacement. The housing land compensation will be distributed prior to demolition, and the housing site shall be arranged within the same village group or village as much as possible. The location selection and allocation in details will be arranged after a villager representative conference organized by village committee. The “three supplies and one leveling” for the homestead will be carried out by the project construction unit, and the expanse is included in construction budget.

Table 5-3: Compensation Standard for House Demolition Base Type Structure type Unit price Remark (Yuan) CNY Housing land 48600 /mu CNY Brick-concrete 2 1000 /m The compensation for the house is

CNY determined based on market price Compensation Brick-timber 2 520 /m evaluation but not less than the for house CNY proposed base price. Earth-wood 2 400 /m CNY Makeshift house 2 200 /m CNY 1. Relocation subsidy: CNY1000 for a household Moving subsidy 2 /m for one time. Other subsidy 2. Transition subsidy: CNY250 for a household with for house Transition subsidy CNY / three or below members monthly; CNY300 for a

Base Type Structure type Unit price Remark (Yuan) month household with 4-6 members monthly; andCNY400 for a household with 7 or above members monthly. Transitional period is six month. In case of time exceeding, the actual time will be counted. Signing CNY agreement 4000 Empty and hand over the house /HH in 20 days

Early Signing moving CNY agreement 2000 Empty and hand over the house reward /HH in 30 days Signing CNY agreement 1000 Empty and hand over the house /HH in 40 days

Table 5-4: Cost of House by Type (per 100m2) Earth wood (simple Brick concrete Brick-wood house) Item Unit Unit Unit Unit Amount Amount Amount No. price No. price No. price (CNY) (CNY) (CNY) (CNY) (CNY) (CNY) A. Main building materials sub total 60020 25320 11830 Wood m3 3 1000 3000 4 1000 4000 5 1000 5000 Concrete Ton 14 380 5320 8 380 3040 0 0 0 Earth No. 0 0 0 0 0 0 12000 0.2 2400 brick Brick No. 50000 0.35 17500 50000 0.28 14000 1000 0.35 350 Steel Ton 3 4800 14400 0 0 0 0 0 0 Plastic m² 25 180 4500 0 0 0 0 0 0 steal Lime putty Ton 4 400 1600 4 400 1600 6 400 2400 Precast m 50 150 7500 0 0 0 0 0 0 Slab Tile No. 0 0 0 8000 0.21 1680 8000 0.21 1680

Sand m3 24 50 1200 20 50 1000 0 0 0 Material for proof & m² 100 50 5000 0 0 0 0 0 0 insulation B. Other material sub total 8000 7500 8000 Nails, iron wire, Nails, iron Nails, iron Miscellany 2000 2500 3000 electronic charge wire, wire,

Earth wood (simple Brick concrete Brick-wood house) Item Unit Unit Unit Unit Amount Amount Amount No. price No. price No. price (CNY) (CNY) (CNY) (CNY) (CNY) (CNY) electronic electronic charge charge Electricity 6000 5000 5000 and hydro C. Labor day 31200 19000 19000

Skilled day 120 200 24000 70 200 14000 70 200 14000

Unskilled day 60 120 7200 50 100 5000 50 100 5000

Total 99220 51820 38830 CNY/ Unit costs 992 518 388 m² Source: Local market price 2014.

5.6 Compensation for Ground Attachment and Infrastructure

165. The compensation standard for the ground attachment facilities and infrastructure of the project is determined based on the principle of “resettlement price”, shown as Table 5-5.

Table 5-5: Compensation Standard for Ground Attachments and Infrastructure Item Unit Compensation standard Pig, sheep and cattle fence CNY/m2 220 Brick fence CNY/m3 400 Soil fence CNY/m3 120 Toilet Brick single/ each 600 Tomb Brick single (CNY/tomb) 1200 Concrete terrace CNY/m2 40 Water well CNY/well 5000 Fruit tree Fruiting (CNY/tree) 60-300 DBH of 5-10cm (CNY/tree) 10-30 Timber tree DBH of 5-30cm (CNY/tree) 20-50 DBH of less than 5cm (CNY/tree) 10 Bamboo m2 40 Sources: Hanyin District and Xunyang Government.

5.7 Compensation for Young Crops

166. The compensation for young crops is CNY 1,200, which is calculated based on the article 29 of Measures for Implementation of The Law of Land Administration of the People’s Republic of China in Shaanxi, and unified annual output value of Hanyin District and Xunyang County.

5.8 Standard of Other Costs

167. The standard of other expenses is given in Table 5-2.

Table 5-2: Tax and Fee Standard of Resettlement No Item Tax and fee standard Policy basis Measures for Implementation of The Law of Land Land Administration of the People’s Republic 1 reclaiming CNY10,500 /mu of China in Shaanxi (Shaanxi Provincial fee People’s Government Shaan Zheng Fa [2000] No.44) Notice on Adjustment of Policy of New Construction Land Use Fee of Ministry of New Finance, Ministry of Land and Resources and construction People's Bank of China (Cai Zong No. 48 2 CNY9,333.38 /mu land use (2006)); Notice on Adjustment of Classification fee of New Construction Land Use Fee in Some Regions by Ministry of Finance and Ministry of Land and Resources (Cai Zong No. 24 (2009)) Measures for Implementation of Provisional Cultivated Regulations on Cultivated Land Occupation land 3 CNY14,666.7 Y/mu Tax of the People’s Republic of China in occupation Shaanxi (Order of Shaanxi Provincial People’s tax Government No.141) Requisition Method for Collecting Requisitioned Land ed land 2.8% of the total land 4 Management Fee of Shaanxi (ShaanCai Gui manageme acquisition fee [2000] N0.022) nt fee

5.9 Entitlement Matrix

168. The entitlement matrix has been established in accordance with the applicable policies in this chapter.

Table 5-3: Entitlement Matrix Type of Degree of Entitled Entitlement Compensation Impact Impact persons rates Compensation of LA includes land The compensation compensation fee, resettlement standards for LA are subsidies to affected village and established in Table then to APs from village: 6-1 In the case of limited amount of The compensation land acquisition in a village, and standards for young the village has reserved land to be crops is CNY 1200 463.96mu in a) 11 allocated to APs, the per mu. Permanent 11 affected affected compensation fee will be reserved LA of village of 4 villages by the village for village The proportion of LA cultivated towns in b) 658 AH infrastructure improvement or compensation land Hanyin and with 2,485 maintenance. distribution to APs Xunyang people In the case where there is no depends on reserved village land to agreement in each redistribute to APs, compensation village. Two factors will be proportionally distributed to affect the APs based on an agreement proportion: 1) the made by village meeting. previous percentage Compensation for young crops will practiced for other be paid to owners directly. project taken land

Type of Degree of Entitled Entitlement Compensation Impact Impact persons rates Preferential employment to APs from their village if for unskilled jobs generated during any to ensure construction and operation consistence and Preferential training to APs equality. Once the APs meet the 2) Whether there is requirements8, they can a need of village participate in the endowment facility repair agreed insurance for LEF voluntarily. by all APs. The project will make efforts to avoid acquiring land while standing crops are ready for harvesting and if unavoidable prior notice will be given and consultations will be done with the owners. Temporary land occupation fee will be paid to land owners yearly. The duration cannot be over two years. In any case occupation period need to be extended, negotiation 46.61mu to be with owners in advance required. Temporary along identified Land restoration fee will be paid to land CNY1300 a year Yandong during those who are responsible for occupation road construction restoration. After completion, temporarily occupied land will be restored by the contractors to the original quality and will be handed back to the land owners. Cash compensation including The compensation market price of house plot and standard is house at replacement cost will be established in Table paid to AHs directly; 6-2 & 6-4. AHs are provided various choices The affected of house relocation. If the AH households will also facing difficulties to buy similar receive movement house plot with the compensation subsidy in lump sum 59 rate, the local township of CNY1000/HH. Residential households government has responsibility to Transition subsidy is housing 11,887㎡ with 251 provided one without additional CNY250-400/HH demolition persons costs to AH. monthly in Moving subsidy and transition maximum 6 months. subsidy will paid to AHs in lump Additional sum directly; resettlement Compensation for other structures subsidy of and all other lost assets will be CNY10,000 per paid in full before relocation. person and reward APs have the right to use of CNY10,000 per salvaged material free of cost. person will be

8 Once APs lose their basic living and production condition or per capita arable land holding is below 0.3 mu after land acquisition can take part in endowment insurance system. Each AP, once he reaches 60 years old or she reaches 55 years old, can obtain a pension of not less than CNY 200 per month form the endowment insurance system.

Type of Degree of Entitled Entitlement Compensation Impact Impact persons rates Vulnerable groups will be assisted granted to those to reconstruct the new house by AHs who voluntarily local government. give up new house construction or give up purchase new house in the concentrated relocation site. Significantly Losing more 5 HHs with Supplement cash compensation To be negotiated affected HH than 10% of 19 APs together with preferential job after DMS productive losing more opportunities for at least one land and/or than 10% of person from the affected family for house land and 59 project generated unskilled relocation HHs with employment. 251 Skill training: A total amount of persons 0.5% of basic resettlement fee has affected by been budgeted to provide skill house training. . demolition Provide credit support for those who need to improve their remaining land productivity or plan to involve in off-farming business, such as vehicle purchasing. Provide assistance in obtain permission in transport service businesses Provide extra subsidy for house relocation and extra rewarding for advance moving All will be compensated at replacement cost, and paid Compensation directly to the proprietors. standard is Ground Affected public facilities will be established in Table attachments Proprietors reconstructed by the owner 5-5. and public according to the original size, Special facilities will facilities standard and function. be negotiated case Cost is included in the by case resettlement budget. Special fund for the vulnerable 36 (overlap (1% of basic resettlement cost) as avoided ) part of the RP budget. as per Provide labor for house Table 2-10 Vulnerable construction Additional subsidy Land in this RP groups (to The priority to obtain the project- of CNY500-2,000 as acquisition/ (the be verified related employment opportunities the special subsidy house vulnerable during will be given. for their economic demolition people will DMS) To ensure that the vulnerable recovery. be further groups get adequate support they verified will be entitled to various during the measures as outlined in Section DMS) 6.5 of this RP. Local government will promote Women / 1285 improved sanitation in new houses.

Type of Degree of Entitled Entitlement Compensation Impact Impact persons rates Skills training will be provided to households members needed. Women’s training needs will be specified through needs assessment. Contractors will give preference to hire women, 50% unskilled job will be provided to women. Every resettlement office must hire at least one female worker to be responsible for women’s affairs in the process of resettlement.

6 Resettlement and Income Restoration Plan

6.1 Impact of Permanent Land Acquisition and Income Restoration Measures

6.1.1 Impact of permanent land acquisition

169. The project involved permanent acquisition of 463.96 mu of village collective land, including cultivated land of 132.89 mu (28.64%), homestead of 18.73mu (4.04%), forest land of 291.5 mu (62.83%) and barren land of 20.84 mu (4.49%). The land acquisition will affect 658 households with 2,485 people in 11 villages of 4 townships of Hanyin District and Xunyang County.

170. For the 11 affected villages, village level cultivated land loss rate ranges from 0.03% to 1.38 % with the highest in Xuejiawan village and the lowest in Dongqiao village. AH per household land loss rate ranges from 0.4% to 9.7% with the highest average in Xuejiawan village and the lowest in Dongqiao village. According to the AP distribution by land loss rate, only 5 households will lose land between 10-15%, no household will loss over 15%.

171. Agriculture in the affected area is wheat, corn and few vegetables with two harvests a year in general. The average output value of wheat is about CNY 570 per mu and the corn is about CNY 650 per mu. Therefore, the annual average output value of cultivated land is about CNY 1,200. The net income is about CNY 900 per mu with deduction of planting cost of CNY 300 per mu (without deduction of labor costs) according to the field investigation. This indicates that the land together with labor input contribution to household net income is CNY 900 per mu. The local cultivated land rental is CNY 200-300 per mu annually in general, which indicates that the contribution of the land alone, to household net income is CNY 200-300 per mu only.

172. Table 6-1 calculates the income loss caused by LA. The average per household income loss based on the total households of affected village ranges from CNY 2 to CNY 68 with the highest in Tangtai village. Note this indicated that if the village has land for adjustment or redistribution, land acquisition caused income loss to individual household is very small. The average income loss per affected person ranges from CNY 5 Dongqiao to CNY 148 in Heihu. In terms of per AP income loss rate, it ranges from 0.08% to 3.11%, depending on the income loss and overall net income of the AP. It indicated that even with no feasibility to adjust land, the income loss caused to the affected household is very limited.

173. For the 5 households (in Gaobinling village) with land loss rate over 10%, their maximum economic loss resulted from land loss is CNY 94-141 per person, accounting for 1.4-2.2% of household per capita net income. The land acquisition caused income loss to them is also very limited.

Table 6-1: Permanent Land Acquisition Impact Before land acquisition After land acquisition Income loss H Ann Annu H ual Villag Villag Per Per Per Per AH al si net No. e e AH AP AP Road Affecte Cultiv HH cultiv inco ze No inco of LA cultiv cultiv inco inco Inco compo Town d Populat ated cultiv ated me . of me affec ated ated me me me nent village ion. land ated land loss HH /pers ted land land loss loss loss (mu) land loss (CNY on HH* loss loss (CN (CN rate (mu) rate % /villa (CN (mu) rate% Y) Y) % ge)* Y) Zaoya Dongw 3. 30 1137 1127 7000 45 6.31 3.8 ng an 70 7 3.67 0.56 5679 126 34 0.49 Zaoyan 4. 47 2391 1937 2037 7241 150 26.57 4.1 g 08 5 4.29 1.30 3 159 39 0.54 Longqu 4. 33 1320 1200 6500 120 12.68 2.9 an 00 0 3.64 1.06 11412 95 24 0.37 Duanji 3. 44 Anxun Beian 1602 1688 6527 40 12.71 8.4 ahe 59 6 3.78 0.75 11439 286 80 1.22 Highwa Gaobili 3. 70 1024 y 2680 2800 6958 32 11.38 8.9 ang 81 3 3.98 0.41 2 320 84 1.21 Duanjia 2. 11 2885 3093 2325 6800 165 32.06 9.7 wan 65 65 2.00 1.38 4 175 66 0.97 Lijiazhu 3. 64 2348 3400 6030 9 1.73 3.7 ang 63 7 5.26 0.05 1557 173 48 0.79 4. 16 Heihu 746 1200 4780 13 9.52 9 44 8 7.14 0.79 8568 659 148 3.11 3. 14 Tangtai 560 1200 5300 21 10.68 6 94 2 8.45 0.89 9612 458 116 2.19 Yanba Yandon 4. 20 Guiping 890 1127 4100 28 8.47 5.8 g 28 8 5.42 0.75 7623 272 64 1.55 Yingh Dongqi 4. 45 1948 2037 5985 35 0.78 0.4 u ao 30 3 4.50 0.04 702 20 5 0.08 3. 50 11960 Total 18261 20141 6111 658 132.89 4.9 62 44 3.99 0.66 1 182 50 0.82 *Assume annual cultivated land net income CNY900 per mu. **Calculation based on affected village’s all HH. Source: consultant’s calculation based on affected village data collected from field survey.

6.1.2 Income restoration plan and assistance measures

174. The land acquisition impact is limited with only 5 households’ experiencing a loss over 10%. The income restoration plan formulated is based on the will of the APs, impact degree and the feasibility of the potential options in each village. During the field consultation, cash compensation, agricultural resettlement with or without land readjustment, arranged jobs during the project construction and operation, assistance to non-farming employment and self- employment, social insurance approaches were discussed.

Table 6-2: Income Restoration Plan and Assistance Measures Selection of Ahs No. No. Non-farming Road Town of of Agricultural Arranged Social employment/ AHs APs resettlement jobs Insurance business Anxun Zaoyang 315 1160 25 50 240 315 Highway Duanjiahe 246 918 20 39 187 246 Yanba 62 249 5 10 47 62 Yinghu 35 158 3 6 26 35 Total 658 2485 53 105 500 658 Proportion (%) 8 16 76 100 Source: Field Socioeconomic survey RP survey July-August, 2014.

(1) Cash compensation and distribution

175. The affected villages/village groups will be compensated in cash based on the standards discussed in Section Error! Reference source not found., where compensation rates for rrigated paddy is CNY 60,000, plain dryland CNY 54,000, sloping dryland CNY 45.000, forest land CNY 22,500, other land CNY 18,000 per mu respectively (refer to Table 5-2). The land compensation distribution from village to AP has two scenarios: 1) If the land acquisition is relatively large amount and the village has not enough reserved land to be allocated to APs, which is common in the project area, 100% of the compensation will be distributed to APs directly. 2) If the land acquisition amount is small and the village has enough reserved land (e.g. returned from a household which has moved to the city) to be allocated to APs to cover their land loss fully, then the APs will be allocated land and the compensation will be reserved for village infrastructure maintenance or improvement. Standing crops compensation rate is CNY 1200, of which 100% will be paid to the affected households. This compensation will be added to the overall compensation standard of the AH.

176. The compensation rate is very comprehensive compared the current land lease price, AAOV and current income level from the land. According to the current land-leasing price in the project area, plain dryland, which is the main cultivated land type, is CNY 200-300 depending on location for convenience of transport. The project compensation for plain dryland per mu is CNY 54,000 that is worth of 180 years land leasing price at the existing higher rate of CNY 300，50 years of AAOV CNY1197 and 90 year of current land contribution of CNY900 per mu. Due to limited land acquisition per household and high compensation rate, most of APs are not worried about loss caused by land acquisition.

177. However, to ensure that the affected households use the compensation in a rational manner, the PMO and other related agencies will provide guidance and required training. The following are restoration options and assistance measures for permanent land acquisition.

(ii) Agricultural resettlement

178. About 53 AH or 8% of the total AH chose agriculture restoration. They will use the cash compensation to improve the remaining land by increase of fertilizer use or change grain crops plantation to cash crops plantation such as ginger, chili, fruit trees, and garden plant seedlings which require intensive labor and capital investment. It is estimated that a plantation of ginger, chili and fruit will generate income of about CNY 1,200-2,000 per mu compared to that of CNY 900 of grain plantation. It is an increase of about 33% to 122% a year. It will be easy for the chosen household to offset their economic loss caused by land acquisition and will improve their incomes.

179. For the garden seedlings and fruit tree plantation, training will be provided. For other crop plantation types, training is not desired by APs because most household have such skills already. It is estimated that about 50 households with 80 members need training on garden plant seedling produce and fruit tree care.

(iii) Arranged Jobs

180. About 16% of the APs expressed interest in arranged jobs. In this the project EA and IA committed to give priority to employing APs for the project generated job opportunities. During project implementation, it is estimated around 150 unskilled jobs are available, and during operation 30-50 jobs with about half for road maintenance and half for greening and cleaning. Their preferential treatment shall be implemented according to the provisions of Labor Law. All interested in the jobs will receive training. It is estimated a total of 50 households with 100 interested and available APs will be trained. Table 6-3 summarizes the direct project created job opportunities.

Table 6-3: Project Direct Created Jobs Jobs No. Proposed Target Planned Daily Projected using time workdays (day) rate income (CNY) (Yuan) Earth- 50 After the project Local 20 80 80000 moving starts villagers with Landscaping and 50 After the project priority given 100 80 400000 other labor works starts to land Logistical support 20 After the project acquisition 200 a year 50 200000 starts APs Road maintenance 30 During project 200 a year 50 300000 operation Total 150 After the project 980000 starts Note: The remuneration for above jobs will be paid by days due to the existing financial system and job nature. The annual income of the position is predicted under full workload. Sources: estimation of the design technicians.

(iv) Non-farming employment/business

181. As the land acquisition caused income loss per household is quite limited and agricultural income is no longer their main income sources, about50% of the AH stated that they are willing

to spend the land compensation and saved time on non-farming employment or self employment business to offset their income loss. As indicated in Error! Reference source not ound., the maximum per AH loss is CNY 659 （or per AP CNY148）, 7-10 days non-farming employment at a common CNY rate per day could cover their income loss.

182. As discussed in Section 3, 0ver 80% of the households’ main income is from non-farming sources and agricultural source is supplementary. Regarding labor input, four basic models are used in operating their cultivated land: 1) by either female or the old family members left home to carry out agricultural plantation; 2) with the migrant family members who come back home during busy season to help with planting or harvesting, 3) by giving land to relatives to plant without charge, 4) leasing out the land that is conveniently located to irrigation and transport at a price of CNY 200-300 per mu per year. Before year 2000, almost all households adopted the first two models, but now more and more households adopt the last two models to avoid interruption to their non-farming migrant jobs. For female left at home, they are willing to spend their saved time in either handicraft or finding local non-farming jobs. The surveyed households, particularly those with no member or only one member have non-farming working experiences expressed their interest in non-farming jobs stimulated by the project and hoped the project can provide market information and skills about handicraft, local non-farming jobs or business opportunities. It is estimated that about 100 households or 200 people need relevant skill training – this has been provided for in this RP.

(v) Training

183. Based on the above restoration options chosen by the AHs, training programs will be designed to meet the specific needs and preferences of AHs.

184. For the household to choose agricultural restoration measures, agricultural technical training such as gardening plant seedling producing, fruit tree plantation and other cash crop plantation will be provided as required.

185. For the non-farming employment, skill training will included landscaping, house decoration, handicraft production, car repair, and other skills, it is estimated that about 200 AH with 300 members require such training. Training content and trainee numbers will be updated after DMS.

186. Special training to the 5 significantly affected households will be designed according to their final selection of non-farming business.

187. Additionally, training in the form of farmer-back-farmer training will be organized. The farmers with skills in cash crops could be invited to share experiences and skills to the new growers in the same or other villages. It will be useful to organize study tours to other villages for APs who are interested in planting new cash crops. It will either be organized by PMO directly or by entrusted government agencies such as agriculture bureau, forestry bureau, or women’s federation. In terms of off-farming training, it will be delegated to labor and social insurance bureau.

188. A total of CNY 132,000 (0.5% of the basic costs) has been budgeted in the RP. The affected people shall receive three skill trainings at least before project completion in 2017.

Table 6-4: Summary of Training Plan Year Target Scope Agency Budget responsible 2015- Total Gardening plant seedling PMO, About CNY 2016 500 plantation, fruit tree or other women’s 132,000 including new cash crop plantation, federation, included in 300 handicraft produce, farm labor and project RP female machinery, motorcycle or other social budget in and 200 vehicle repair, stonecutter, security addition to male painter, concrete worker, bureau, local waterproofing worker, masonry agriculture government worker, house decoration and forestry fiscal funds. worker, etc. bureaus Source: Field socioeconomic and resettlement survey, July-August 2014. (vi) Endowment insurance

189. All affected households expressed interest in social insurance. However, the endowment insurance for LEF only targets eligible households. The project land acquisition is linear and therefore has very few opportunities to create LEF. However, for a few villages with very limited land, there is such potential. No endowment insurance will be provided if there are no eligible APs. But for general pension, insurance, it is up to the APs to participate on a voluntary basis.

190. To guarantee the vulnerable groups livelihood restoration, MLSS will be made available for officially identified poor. Other insurance options are optional subject to APs voluntary decision.

191. The AP with per capita cultivated land remaining that is less than 0.3 mu after land acquisition are eligible to be included within the endowment insurance, and men over 60 years old and women over 55 years old shall start to receive pension.

192. According to the Supplementary Notice on Land Acquisition and Demolition for Ankang Central City Construction and Land-requisitioned Farmers’ Endowment Insurance (An Zheng Fa No. 15 (2009)) issued by Administration Office of Ankang Municipal People's Government, the process is: a) Target: 1) The person with entitlement of collective farming land contract; 2) the adult (age over 18 years old) with per capita remaining land less than 0.3mu after land acquisition. b) Contribution: Total amount of 50,000 contribution to endowment insurance premiums for 15 years are required. From this, individual AP or their economic organization (village or village group) pay 60% (deduct from land compensation and subsidy) and government pay 40% (of which shared one third each by provincial, prefecture level city and county government). c) Benefit: The person upon reaching their pension age will receive a subsidy of CNY 200 monthly.

(vii) Special assistance to significant affected household of LA

193. The 5 households losing more than 10% land will be provided the following special assistance: (i) Priority will be given to arranged jobs. One member from each household will be guaranteed an arranged job.

(ii) Preferential credit will be provided if needed to develop non-farming business such as purchase of vehicles for transport business, repair shop, small business of buying and selling, or change from grain plantation to gardening plant seedlings or fruit trees as requested. (iii) Specific training will be provided as desired including farmer to farmer exchange visit. (iv) Special treatment for vulnerable group will be provided to them too as described in Section 6.3.

6.2 Demolition and Resettlement Plan for Residence

194. The component will involve demolition of 11,887 m2 of housing and will affect 59 households with 251 members. Field surveys revealed that most of the affected houses are not in good conditions in terms of structure, water, electricity supplies and road accessibility, out of date indoor decoration and surrounding area sanitation. Guided by the principles of the replacement costs and no depreciation, most APs view that the project provides reasonable compensation standard as set out in Section Error! Reference source not found.

6.2.1 Relocation options

195. In all cases, cash compensation for housing plot, house structures including other structures and attachments based on the replacement costs and allowances will be provided. The Project also provides several options for APs to choose based on their own conditions, which will positively facilitate to restore or improve their living condition smoothly. The major options include: (i) Cash Compensation without housing lot allocation

a) Cash compensation without new house construction 196. For those households with alternative houses in the city or nearby places or who plan to buy commercial residential house in town and then to give up reconstructing new houses, a written application is required. In addition to cash compensation of housing lot and replacement price of house structure including annex buildings paid in cash to AH directly, an additional resettlement subsidy of CNY 10,000 per person and CNY 10,000 cash reward per person will be granted once the written application is approved. b) Cash compensation with existing house expanding or rehabilitation 197. Households with an existing house have potential to add more floors, or where the housing lot is big enough to add an annex building, the AP does not need another housing lot. If APs choose this option, a written application is required. In addition to cash compensation of housing lot and house structure including annex buildings, an additional resettlement subsidy of CNY 10,000 per person and CNY 10,000 cash reward per person will be granted once the written application is approved. c) Reconstruct new house with purchase housing lot by APs 198. For those who choose to construct new houses by themselves and purchase housing lot by themselves, or they use their existing housing land, the project will compensate their housing lot and structures according to the Project standards. After several discussions with AHs, it was agreed that the current compensation standard is generally enough to purchase similar condition housing lot in the same area. If an AH purchases a housing lot cheaper than the compensation standard, the savings belongs to the AH. If a household chooses to reconstruct their new house in a better place (e.g. closer to town center area or a wider space) voluntarily, they will need to pay the additional costs by themselves.

(ii) Concentrated resettlement in New Rural Village Development Plan

199. For those who are willing to purchase a new house in residential area under a new rural village development program, cash compensation of housing lot and replacement price will be paid directly to AHs. In addition, discount has been negotiated and committed. Both location and quality of the house will be better than the proposed demolition houses in general. The price committed is based on the construction costs, higher than the compensation standard but lower than the commercial residential house. The surveyed AHs will continue to discuss the details in terms of concentrated resettlement sites selection.

(iii) Individual reconstruction on the government allocated housing site

200. If the households have difficulties finding a housing lot, but still want to reconstruct their new houses, the town government has committed to provide the AHs with housing lots acceptable to them. The price will not exceed the compensation standard regardless of actual costs. There will be no additional cost to the AHs.

201. The provided housing lot can either be located in a concentrated area or a single housing lot. In either case, water, electricity supply and road will be made available, and the land leveling will be done by the project. The design fee also will be covered by the project.

202. The selection of the relocation site and plot should be done before the end of June 2015.

203. Table 6-5 summarizes the preferred options of the AHs in each town/township. Out the total 59 AH, there are 22 AHs has not decided the options yet. It will be updated when the DMS done.

Table 6-5: Resettlement Options of HD affected Households Resettlement Description No. of resettled HH by town/township Yan Yinghu Zao Duan Total ba yang jiahe 1. Cash 1.1 Cash 2 1 1 Compensation compensation and no with no need of house relocation reconstruction housing lot 1.2 Cash Add one more floor on 0 7 allocation compensation then top of bungalow or needed expansion of annex a building to remaining/other bungalow house 1.3 Cash AHs has not live in the 0 3 compensation then village but keep house purchase residential and “Hukou” there, house in city/town prefer to use the compensation to purchase house in city/town 1.4 Compensation AH be able to 12 2 then reconstruction purchase housing plot by purchasing by themselves to re- housing lot by construct their houses

Resettlement Description No. of resettled HH by town/township Yan Yinghu Zao Duan Total ba yang jiahe themselves

1.5 Cash 14 4 2 22 compensation and no housing restoration plan selected yet Sub-total 14 17 15 50 （2）Cash 2.1 Duanjiahe town Government 9 9 compensation resettlement site reconstruct houses in with Duanjiahe town site Concentrated and then allocation resettlement house to AH （3）Cash 3.1 Allocation of Government allocation compensation housing site with housing lot in a with needs of unified construction concentrated site to housing site individual AH and allocation each AH construct their own house 3.2 Allocation housing Government allocation lot and re-construction housing lot individually house individually subject to the housing site availability and each AH construct their own house Sub-total 9 9 Total 14 4 17 24 59 Source: Field Socioeconomic and resettlement survey inJuly- August 2014.

204. All affected villages will actively participate in arrangements and negotiation with town government.

6.2.2 Concentrated resettlement site

205. According to the preliminary decision of Duanhiahe Town, a resettlement site will be built in the Town. One option is trying to be integrated into new rural village development program, but has not decided which one yet.

206. The price for each house type is based on the location, area, decoration and structural assessment. It is estimated that the price will be CNY1000-1800/m2. The resettlement households can choose different house types and sizes according to their economic condition and housing requirement. As in all cases with cash compensation for housing land, house and its annex buildings, the selection of type and size in each site is fully voluntary and depends on each household. If the chosen type and size is smaller than their originals, the saving belongs to APs, but if the selection is larger, the AH needs to pay the additional cost by themselves. As the new houses are much better than the original houses in terms of location and construction quality, the price is higher than the compensation standard. All APs view that is reasonable and acceptable. In any case, if the APs do not satisfy the concentrated relocation option, individual relocation by allocated housing site in a similar area is available.

6.2.3 Other subsidy policy:

207. The affected households will be entitled the following rights and interests: (i) Preferential labor training; (ii) Benefits from the social security policy in project implementation area including qualifying personnel into Endowment Insurance LEF in Ankang; and (iii) Access to the suitable jobs created by the project directly and indirectly, including jobs under project implantation agencies and jobs relating to enterprises attracted into the project area.

6.3 Livelihood Restoration for Vulnerable Groups

208. A support fund for vulnerable groups (53 HH consisting of 160 people) of CNY 264,000 (1% of basic resettlement costs) will be established under the project to support vulnerable groups affected by the project. The main affected vulnerable groups are the poor, single parent family and women-led family, Wubao (five-guarantee households), households affected by disability and illness. A series of additional measures have been put in place to help them in livelihood restoration and relocation restoration.

(i) Giving priority to vulnerable groups in resettlement measures

a) Land acquisition affected households:  Priorities will be given in obtaining replacement land through allocation of reserved land, or through land transfer if the vulnerable AH choses to restore their income through agricultural measures;  The households with a labor force will be given priority in skill training and priorities given in provision of arranged jobs by the project and local government. Eliminating zero employment of poor households (with a labor force) is the target of government poverty alleviation program, it will also be the target of this project;  Include all eligible AH into LEF endowment insurance. The new rural endowment insurance will be an optimal option for the AH on a voluntary basis; and  Provide preference loan to the significantly affected households if necessary in developing non-farming business, such as purchasing vehicles for transport business, operating repair shops, developing other income generating business.

b) House demolition affected households:  Priorities will be given to vulnerable group to choose resettlement locations;  If the vulnerable households who choose to reconstruct new house by themselves, priority will be given in arranging relocation housing land. In addition, a one-off for poor extra subsidy support payment of CNY 5,000 will be provided;  A one-off extra advance moving reward of CNY 3,000 will also be provided to vulnerable households if they meet the advance moving criteria; and  Minimum size housing will be guaranteed for the poor.

(ii) Including eligible vulnerable groups in MLSS as a priority

209. According to the MLSS policy of Hanyin District for rural residence, eligible vulnerable groups affected by the Project will be included in the MLSS in time and receive MLSS benefits so as to ensure that the per capita net income of each rural AH is not less than CNY 2,500a year and the per capita income of each urban AH is not less than CNY 209/month.

(iii) Providing rural medical assistance to eligible vulnerable groups

210. Rural medical assistance will be provided to eligible vulnerable groups to solve their difficulty in receiving medical care. Hanyin District and Xunyang County Government will provide medical assistance for the rural residents in line with the policies.

6.4 Women’s Development Measures

211. During the resettlement process, women’s rights and interests will be fully protected, and women will play an important role in socioeconomic and resettlement activities.

212. Ensuring women’s equal rights: During the preparation of RP, separate meetings were held with female representatives of APs and the Women Federation Association in order to allow women to express their needs, expectations and suggestions on resettlement and restorations measures. Most of them including women-headed households stressed their concerns, namely: (i) receiving compensation on time; (ii) selection of resettlement mode and housing land, (iii) improving agricultural production with limited farmland; and (iii) operating small businesses at home or at agricultural product fairs or markets with either the compensation or small loan which will be provided by the project. Measures to address these concerns have been included in the RP.

213. Training priorities to women with preferential training methods and content: As women have relatively lower education levels and experience generated in migrant jobs, they have less available employment and income generation choices than men. Training is particularly crucial to them in developing new income sources given to opportunity generated from the industrialization and urbanization development. They hope to have not only agricultural skill training on horticulture, fruit tree caring, but also non-farming skills with handicraft, urban employment skills such as hotels, restaurants, shopping malls, and skills working in factories e.g. garment factories. Their training needs have been designed in this RP and training budget has been reserved (refer to Section 6.1). The project will ensure that 40%-60% training opportunities are provided for the affected females. The Women’s Federation representatives together with the employer agencies will further consult with women to detail the training design on methods and contents.

214. Providing and assisting women to apply for the project-generated job opportunities: For those who are interested in participating in project job opportunities, Women’s Federation staff at the township and village levels will be responsible to inform them of job opportunities in advance and facilitate women to apply for the employment. Basic skill on landscaping and other relevant skill training will be provided prior to recruitment.

6.5 Recovery Plan of Ground Attachments and Special Facilities

215. The special facilities affected by the project are mainly power lines, telecommunication lines, etc. To minimize disruption to residents, detailed surveys have been done and the budget

has been included in the RP budget. The relevant line agencies will be responsible for detailed relocation planning and rebuilding electric power and communication facilities.

7 Institutional Arrangements

7.1 Institutional Arrangements

216. Since resettlement is a very comprehensive task that needs the assistance and cooperation of various departments, the relevant departments shall participate in and support resettlement implementation. Each affected township or village has one or two chief leaders responsible for resettlement. The agencies responsible for the LA and the HD in the Project are:  Shaanxi Provincial (Communication Department ADB Loan) Project Leading Group (SPPLG)  Shaanxi Provincial (Communication Department ADB Loan) Project Management Office (SPPMO)  Hanyin District and Xunyang County (ADB Loan Road) Project Leading Group (HXPLG)  Hanyin District ( ADB Loan Road) Project Management Office (HPMO)  Hanyin District (ADB Loan Road) Project Resettlement Office (HPRO)  Project town/township governments (PTG)  Village committees/residents committee (VC/RC)  Project design Institute (DI)  External independent monitoring and evaluation agency  Other departments: Land Resources Bureau (LRB), LA and Resettlement Office, Women’s Federation, Labor and Social Security Bureau.

217. The Organizational Chart is shown in Figure 7-1

Leading Group of Shaanxi ADB Loan Mountainous Road Safety Demonstration Project and its Office (SPPLG and SPPMO)

Project Leading Group of Ankang (APLG) and its office (APMO)

Hanyin Project Office Internal (HPMO) monitoring External monitoring unit Hanyin Project Resettlement Office (HPRO)

Project town Resettlement Office (TRO) under Town Government (TG)

Community and village committee (VC/RC)

Affected people (AP)

AH by AH by Affected HD LA Infrastructure

Figure 7-1: Project Relocation Organizations

7.2 Organizational Responsibility

(i) Shaanxi Provincial Project Leading Group (SPPLG) and Its Office (SPPO)

218. SPPLG is the leading agency responsible comprehensively for the overall deployment of the Project and solving major issues. The group will include Comprehensive Planning Division

and Road Management Division, and lead by a deputy director of Shaanxi Provincial Transport Department.

219. SPPMO in Foreign Funds Project Office (FFPO) is the working body of SPPLG as coordinating agency in charge of applying for ADB loan, coordinating the formulation and implementation of RP, monitoring and evaluation of the RP implementation, including funds flow of compensation of LA and HD.

(ii) Ankang City Leading Group (ACPLG) and Project Management Office (APMO)

220. Ankang City Government is the implementing agency of this Project, and the project leading group consists of heads from each relevant bureaus, including transport bureau, land and resources bureau, resettlement bureau, development and reform bureau, etc. The HPMO is the working body of the ACPLG set up in Hanyin District Transport Bureau, responsible for the project management, coordination, supervision, direction, quality assurance and annual planning, and the follow-up monitoring of the implementation, reporting to SPPMO regularly. The main responsibilities in resettlement include organizing the resettlement work of the project, developing the local policy on resettlement activities, coordinating relations among resettlement agencies at all levels, coordinating the work of the bureaus concerned at the preparation and implementation stages, and making decisions and consultation on major issues arising from construction and resettlement.

(iii) Hanyin Project Resettlement Office (HPRO)

221. The HPRO, consisting of 4 persons in Hanyin PMO, responsible for identifying and confirming the quantity of land acquisition and house demolition, special facilities and ground attachments, conducting the DMS and saving data; assisting in preparing the RP and implementing RP; selecting resettlement officials for operational training; organizing public consultation, and communicating resettlement policies; directing, coordinating and supervising LA and resettlement activities and progress; disbursing resettlement costs according to the agreement and handling grievances of APs; assisting and supervising the affected villages carry out economic rehabilitation plans and ensuring the income restoration of the affected people; carrying out internal monitoring, preparing internal monitoring reports and reporting to Hanyin PMO.

(iv) Town/township Government

222. The town/township resettlement offices, headed by each Town/township leader are comprised of key officials of the land and resources office, police office, civil affairs office and villages. The main responsibilities are:  Participating in the survey of the Project, and assisting the preparation of the RP.  Organizing public participation, and communicating the resettlement policies;  Implementing, inspecting, monitoring and recording all resettlement activities within the town;  Settling the house demolition and reconstruction;  Responsible for the disbursement and management of land compensation fees;  Supervision of LA, HD and house restoration;  Reporting LA, HD and resettlement information to the HPMO; and  Coordinating and handling conflicts and issues arising from its work.

(v) Village committees/Residential Committees and village groups

223. The resettlement working team of a village committee or village group comprises its key community leaders and representatives of APs and with authorization of villagers’ convention. Its main responsibilities are:  Participating in the socioeconomic survey and DMS;  Assistance in preparing the Relocation and Resettlement Plan;  Organizing public consultation, and communicating the policies on LA and HD;  Organizing village meetings in discussing the proportion of compensation distribution to APs and supervision of the use of reserved funds in a village if any;  To choose resettlement sites and distribute housing land for relocated families; Helping APs to get house construction approvals;  Organizing the implementation of agricultural (including reserved land distribution) and nonagricultural resettlement activities;  Reporting the APs’ opinions and suggestions to the relevant authorities;  Providing assistance to relocated households with difficulties, particularly the vulnerable families;  Supervising land acquisition, housing and ancillary facilities demolishing and reconstruction;  Reporting the progress in land acquisition and resettlement; and  Preparing clearance letter to confirm the facility and infrastructure restored and meet their requirement.

(vi) Agency undertaking RP formulation

224. Shaanxi Academy of Social Sciences has been entrusted by SPPMO to formulate the RP. The responsibilities include: i) formulating the RP and ii) providing training to the RP implementation staff of PMO in provincial, county and township level.

(vii) Internal supervision agency

225. Hanyin Project Management Office (HPMO) set up an internal supervision office for land acquisition and resettlement, consisting of 2 persons. The duty of the office is to guarantee all the land acquisition and resettlement officers can fulfill their tasks, carry out the requirements of the RP, and guarantee all the affected people can get their rights and interests.

(viii) Design Institute

226. At the planning and design stage, it will survey the physical indicators of LA and HD, environmental capacity, usable resources, etc. accurately, and assist the governments in the Project area in developing resettlement programs, preparing budgetary investment estimates for compensation for LA and HD, and preparing the relevant drawings.

227. At the implementation stage, it will submit the design documents, technical specifications, drawings and notices to the owner, make design disclosure to the PMOs of all levels.

(ix) External independent monitoring and evaluation agency

228. The owner will invite qualified M&E institutes as external M&E agency. The main responsibility includes:

 Monitoring all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the effectiveness of resettlement and the social adaptability of the APs, including women and vulnerable APs, and submitting M&E reports to SPPMO and ADB semi-annually;  Providing technical advice to the Resettlement Office in data collection and processing.  Follow the TOR for external M&E (see attachment 3).

7.3 Staffing and Equipment

7.3.1 Staffing

229. In order to ensure the successful implementation of the RP, all resettlement agencies of the project have been provided full-time staff, and an efficient communication channel has been established.

7.3.2 Equipment

230. All resettlement agencies of the Project have been provided basic office, transport and communication equipment, including desks and chairs, PCs, printers, telephones, facsimile machines and vehicles.

7.3.3 Organizational Training Program

231. In order to ensure the successful implementation of the resettlement work, the resettlement staff will be provided training. As the SPPMO has implemented many ADB projects,9 they are familiar with both ADB and PRC RP policy and procedures, and therefore do not need much training. In contrast, the staff in county PRO, TRO and village levels are experienced with PRC resettlement policies and procedures, but are not familiar with ADB policy and procedures. Therefore the training will focus on county level and lower.

232. A staff training and human resources development system for the county, township, and village level resettlement agencies will be established. Training will be conducted in such forms as expert workshop, skills training course, visiting tour and on-site training.

233. The scope of training includes  ADB resettlement policies,  Differences between ADB and PRC polices,  Resettlement implementation planning and management,  Key points require attention during RP implementation, and  RP implementation M&E.

234. The training budget for resettlement agencies is CNY 50,000, which has been included in the technical training budget. Detail training design will be formulated during RP implementation planning phase.

9 i.e. ADB 30424-013，Shaanxi Roads Development, 2001, ADB 46042-002, Shaanxi Trunk Roads Improvement Project, 2013.

8 Resettlement Budget

8.1 Resettlement Budget

235. Based on the May 2014 prices, the estimated resettlement costs of components covered by this RP were CNY 35.771 million, including permanent LA costs of CNY 14.796 million, temporary land occupation costs of 0.061million, compensation fees of house demolition CNY 10.58 million and CNY 0.765 million of compensation fees for infrastructure and ground attachments, special facilities of CNY 0.2 million, special supporting funds for vulnerable groups CNY 0.264 million, technical training CNY 0.132 million, RP preparation and M&E CNY 0.396 million, taxes and management fee of CNY5.323 million and contingencies of CNY 3.252 million. See Table 8-1 for details.

Table 8-1: Resettlement Budget Amount Proportio No. Budget Item Unit Standard Quantity (unit) (CNY’0000) n (%) Total of 1.1-1.5 1 Basic resettlement costs CNY’0000 2640.4 items 73.81 1.1 Permanent land acquisition CNY’0000 1479.6 41.36 1.1.1 Cultivated land mu 54,000 132.89 717.6 20.06 1.1.2 Homestead mu 48,600 18.73 91.0 2.54 1.1.3 Forest land mu 22,500 291.5 655.9 18.34 1.1.4 Subsidies for young plants CNY/mu 1,137 132.89 15.1 0.42 1.2 Temporary land occupation CNY/mu 1,300 46.61 6.1 0.17 Compensation fee for housing 1.3 CNY’0000 1058.2 demolition 29.58 ㎡ 1.3.1 Rural brick-concrete structure 1,000 8,923 892.3 24.94 ㎡ 1.3.2 Rural brick-wood structure 520 960 49.9 1.39 1.3.3 Rural earth-wood structure ㎡ 400 1793 71.7 2.00 1.3.4 Makeshift house ㎡ 200 211 4.2 0.12 1.3.5 Transition costs for relocation CNY/ household 300×6 59 10.6 0.30 1.3.6 Moving subsidy CNY/ household 1000 59 5.9 0.16 1.3.7 Early moving reward CNY/ household 4000 59 23.6 0.66 Compensation for ground ancillary 1.4 CNY’0000 76.5 facilities 2.14 2 1.4.1 Pens for pigs, sheep and cows CNY/m 220 131 2.9 0.08 2 1.4.2 Brick enclosure CNY/m 400 410 16.4 0.46 1.4.3 Toilet Brick single/ each 600 10 0.6 0.02 Brick single 1.4.4 Tomb 1,200 31 3.7 (CNY/tomb) 0.10 3 1.4.5 Water well CNY/m 400 13 6.5 0.18 1.4.6 Fruit tree Fruiting (CNY/tree) 100 2799 28.0 0.78 DBH of 5-10cm 1.4.7 Timber tree 40 4599 18.4 (CNY/tree) 0.51

Amount Proportio No. Budget Item Unit Standard Quantity (unit) (CNY’0000) n (%) Compensation fee for special-purpose 1.5 CNY’0000 20 facilities 0.56 2 Support fund for vulnerable groups CNY’0000 （1% of basic fee） 26.4 0.74 Relocation monitoring and evaluation （1.5% of basic 3 CNY’0000 39.6 fee fee） 1.11 CNY’0000 3.1 Fee for formulation of relocation plan （0.5% of basic fee) 13.2 0.37 Monitoring and Evaluation cost for CNY’0000 3.2 （1% of basic fee） 26.4 relocation and resettlement 0.74 CNY’0000 4 Relocation training cost （0.5% of basic fee) 13.2 0.37

5 Taxes related to land acquisition CNY’0000 532.3 14.88 5.1 Land acquisition management fee CNY/mu (2.8% of basic fee) 73.9 2.07 5.2 Cultivated land occupation tax CNY/mu 14666.7 132.89 194.9 5.45 5.3 Cultivated land reclamation fee CNY/mu 10500 132.89 139.5 3.90 Paid use fee for newly-added CNY/mu 5.4 9333.38 132.89 124.0 construction land 3.47 CNY’0000 （10% of 1-5 6 Contingencies 325.2 items） 9.09 CNY’0000 2~6 Subtotal 936.7 26.19 7 Total CNY’0000 3577.1 100

8.2 Resettlement investment plan and source of fund

236. The source of resettlement funds comes from local financial counterpart funds and domestic loans. Before or during the construction phase, the investment plan will be implemented in stages in order to not affect the production and livelihood of the affected households. Table 8-2: Resettlement Investment Plan

Year 2015 2016 Total Amount of investment (CNY 2,146 1431 3,577 10,000) Proportion (%) 40 60 100

8.3 Management and Disbursement of Resettlement Funds

237. Land compensation fees and resettlement subsidies should be used in full consultation with the APs; young crop fees are paid directly to the affected persons; compensation fees for infrastructure and attachments are paid to the affected entities or individuals.

238. To ensure that the resettlement funds are available both timely and completely, and the APs’ production, livelihoods and income are restored, the following measures will be taken: (i) All costs related to this RP shall be included in the total budget of the project. (ii) Land compensation fees and resettlement subsidies shall be fully paid up before land acquisition, so as to ensure that all affected people are properly resettled. (iii) For AH who choose cash compensation, 50% of compensation fees for HD shall be paid to the APs upon execution of the HD compensation agreement, and the balance shall be paid upon house hand over. For AH who choose unified relocation option, balance of the compensation by deduction of the new house price will be paid at one time after the agreement is signed. For AHs who choose reconstruction of houses by themselves, new housing plot will be allocated by village committee or township government when the agreement is signed, and all compensation should be paid when the AH hands over or vacates the house. If a plot/unit is provided, that compensation can be deducted. The minimum transition allowance should also be provided at handover/vacation of the house, and transition allowance should also be provided. (iv) To ensure the smooth implementation of land acquisition, relocation and resettlement, the finance and supervision institutions at all levels will be established to ensure that all funds will be paid both timely and completely. (v) The budget is estimated based on the preliminary design and field survey. The resettlement costs may be increased due to the change of the Project scope and related LAR impacts, the increase of the compensation standards and price inflation, but the IA will ensure that compensation fees are fully paid. The budget shall be modified as necessary in the updated RP.

239. Figure 8-1 shows the resettlement funds distribution flow.

8.4 Approval of Budget Increase

240. The project implementation unit has the authority to adjust the budget among categories and the use of contingencies within the budget. Costs exceeding total RP budget should be reported to Shaanxi Provincial Development and Reform Commission and Financial Department

of Shaanxi Province by the project office and the increase of the budget subject to the approval. The whole process shall not be more than one month.

Figure 8-1: Resettlement Funds Flow of Distribution

Disbursement of resettlement funds

Land acquisition Compensation fees compensation for infrastructure and Housing agreement and ground ancillary demolition fees payment of fees facilities

Sign agreement

50% of relocation fees Relevant units or individuals

Direct Affected paymen Hand over/vacate people t house Compensation for fees young trees Land compensation fees

Resettlement subsidy

The balance should be paid Payment Village committee before LA Ask for villager’s opinions through village meetings

9 Public Participation and Grievance Redress

9.1 Public Participation

241. According to relevant policies and regulations of ADB, the PRC, Shaanxi Province Transport Department and Hanyin District, it is required to conduct public participation at the preparation and implementation stages in order to protect the lawful rights and interests of the APs, reduce grievances and disputes, and realize the resettlement objectives. It is necessary to develop a sound framework and implementation rules, preparing an effective RP, and organizing proper implementation.

9.1.1 Stakeholder identification and information disclosure

242. The main stakeholders refer to the groups directly affected by the project, including: (1) those suffering land loss and property loss; (2) the villages to be benefited in the project area; (3) all organizations and companies directly participating in project construction and operation, such as construction contractor.

243. The indirect stakeholders include indirect beneficiaries, such as suppliers of building materials, government organizations participating in the project activities as well as the people who are interested in the project and also participate in the relevant project activities in the process of land acquisition and demolition.

244. Early stage information disclosure will be through agencies involved in project design and administrative line agencies at various levels. The main content includes project rationale, scope, road standard, alignment selection, and potential affected people by land acquisition and house demolition. During the PPTA phase, information disclosure occurred mainly through project management office at provincial and county level, and survey teams of RP, poverty and social analysis and environment assessment. Key information including resettlement principles and compensation standard, resettlement options and assistant measures, and up to date negotiation process and results. Future information disclosure will be conducted through information booklet distribution and website, village bulletins and public media as well as through public consultation. Key information related to compensation standard, implementation schedules, resettlement budget and funds flow, organizational responsibility and contact persons, grievance redress, and internal and external M&E will be included in the booklet and distributed to all affected households. Project implementation progress will be disclosed to the APs and posted in village bulletins. The draft and final RPs will be posted on ADB website.

9.1.2 Participation during project preparation

245. At the feasibility study, preliminary design and PPTA, intensive consultation with stakeholders has been conducted with focus on project scope and component, the alignment selection/shaping, design standards, and alternatives of reducing affected populations. During the PPTA, surveys were undertaken from April to August 2014. A total of 163 households (123 samples of potential affected households along the alignment corridor in RP development, 40 households from wider area of the project in poverty and social analysis from 10 villages were surveyed. In addition, a total of 20 key informant interviews, 20 FGDs and 5 consultation workshops have been held with women, poor, elderly and village representatives in the project area and a number of key informant interviews were held with various bureaus. Over 2000 person times were interviewed/surveyed or consulted in the process. Participants included individual villagers, village leaders, staff of government agencies such as the Resettlement

Bureau, Transport Bureau, Tourism Bureau, Development and Reform Bureau, business owners and employees. The assessments, surveys and discussions provided the quantitative and qualitative materials that were used to prepare the RP, and other documents to comply with both ADB and PRC policy requirements.

246. Methods and tools used include (i) field visits to collect basic information on the project impact from project beneficiaries and APs; (ii) household survey to understand family situations, livelihood status and living conditions; (iii) focus group discussion to learn expectations and requirements of affected people; (iv) interviews with representatives of households, villages or communities to find potential impacts, coping strategies and demands for support; (iv) interviews with government agencies, development organizations and industrial parks to identify existing programs that can help the poor to take advantages of the project benefits, and (v) workshops were held to collect feedback on the draft RP.

247. The consultation during project preparation shows in Table 9-1 for details.

248. A resettlement information booklet (RIB), as shown in Appendix 3, will be distributed in January 2015. The RP will be updated based on the DMS and will be disclosed to the APs and submitted to ADB for review and approval prior to start the LAR activities and approval of civil works contract awards. After ADB approval, the updated RP will also be disclosed to APs and posted on ADB website.

Table 9-1: Public Participation during Project Preparation Time Organizer Participants and number Objective Issues, comments and suggestions Engineers, government line agencies officials, traffic Project feasibility  Introducing project background and management experts and study, on-site Design institute purpose, updating progress, officials, affected county and inspection of and PMO of  Seeking alternatives to minimize cultivated 2011.4~2013.12 towns/townships government alignment selection, Foreign Capital land acquisition and house relocation officials, villager leaders, APs, preliminary Division of SPTD  etc. assessment of project Seeking alternatives to maximize Total 982 participants with impact beneficiary villages and APs. female 510  Assisting project impact survey  APs expressed strong needs of the project.  Comments and suggestions on project scope and route adjustment,  Suggestions on relocation options, compensation modes and standard. Cash Relevant government line Design institute, compensation becomes the pre-condition suggested agencies, affected RP and SPA Relocation plan by APs as formulating other options. town/township government, survey team of preparation,  2014.2~2014.5 village leaders and villager Assisting socioeconomic survey on SASS, PMO of socioeconomic survey representatives individual affected households, identification of Foreign Capital of resettlement impact Total 1280 participants with restoration options preferred, assistance measures Division of SPTD female 650 needed,  Identification of vulnerable groups and significant affected households and their specific needs in livelihood restoration,  Formulating special assistance measures in supporting vulnerable groups and significant affected households. Relevant government line RP and SPA agencie officials, Affected survey team of  Back and forth negotiating compensation town/township and village SASS, PMO of options and livelihood restoration options with project 2014.6~2014.7 leaders and APs RP preparation Foreign Capital EA and IA, representatives Division of SPTD,  Drafting RP Total 700 participants with HPMO female 420 HPMO, RP and Affected towns and villages Consultation and  Information disclosure of finalized land 2014.7~2014.7 SPA survey team leaders and APs survey on resettlement compensation standard of SASS Total 1300 participants with option selection of  Compensation allocation from village to

Time Organizer Participants and number Objective Issues, comments and suggestions female 680 individual HH Ahs. The compensation allocation from village to Finalizing final draft of individual APs depends on the size of land RP acquisition, availability of village reserved land to be allocated to AH and the previous allocation proportion of other project caused land acquisition in the same village. E.g. if the acquired land size is limited and the village have enough reserved land to be allocated to the AHs, the compensation will be then reserved in the village to be used to village infrastructure maintenance or improvement, otherwise the compensation will be distributed to AHs in 100% or a proportion in consistence with the previous project settled in the village. Therefore, the compensation distribution from village to individual household depends on each village. The affected villages will discuss further when the DMS has been done.  Individual household income restoration option selected and assistance needed  Formulating relocation options and incorporating AHs’ opinions and suggestions,  Initial Individual relocation plan of house demolition affected households  Training needs assessment and initial training program formulation  Estimation of project created job directly and indirectly. Arrangement of job post method.  Eligibility of APs towards LEF insurance scheme and voluntary participation of New Rural Social Insurance program.  Initial relocation site selection by individual household  Suggestions of house demolition APs on form of housing construction and infrastructure construction  Women’s unique role in resettlement and specific needs  Prepare final draft of RP

Time Organizer Participants and number Objective Issues, comments and suggestions  Disclosure LA and HD impact, January 2015 HPMO APs, village groups RIB distribution compensation and restoration plans and complain channels  Disclosure LA and HD impact, SPPMO, HPMO Government line agencies Disclosure the first March 2015 compensation and restoration plans and complain and ADB and APs draft RP channels *HPMO-Hanyin Project Management office, SPPMO=Shaanxi Provincial Project Management office, RIB=Resettlement information booklet, RP=Resettlement Plan, HD=House demolition, LA=Land acquisition, APs=Affected persons, SPA=Social and Poverty Assessment, SPTD=Shaanxi Transport Department, SASS=Shaanxi Academy of Social Science.

9.1.3 Participation plan during implementation

249. Along with project implementation, the IA will conduct further public consultation and participation. The arrangement of public consultation and participation is shown in Table 9-2.

Table 9-2: Project Public Participation Scheme Objectives Approach Time Agencies Participant Topic Announcement on Village HPMO, HDRB, land acquisition bulletin HLRB, HTB, and area, Announcement board and 2015.4 affected town All APs compensation on LA villagers officials & village standard, meetings cadres resettlement modes, etc. Announcement Village HPMO, HDRB, on LA bulletin HLRB, HTB, and Announcement on compensation board and 2015.4 affected town All APs compensation fees and villagers officials & village and payment mode resettlement meetings cadres plan Find out anything omitted to determine the final HPMO, HDRB, impacts HLRB, HTB, and Preparing a DMS result Field survey 2015.5-2015.6 affected town All APs detailed list of lost officials & village land and properties cadres Preparing the sample compensation agreement Discussion on the Confirmation of HPMO, HDRB, Villagers final income income HLRB, HTB, and meetings Prior to restoration plan restoration affected town All APs (many implementation and plan on use of plan and officials & village times) compensation implementation cadres funds Submission of updated RP to ADB for review and approval prior to start the LAR activities and approval of Updating and Prior to SPPMO, HPMO civil works approval of Website All APs implementation and ADB Contract awards. final RP After ADB approval, the updated RP will also be posted on ADB’s website for disclosure Hosing site Villagers Three months Land and All APs by Agreement signing

Objectives Approach Time Agencies Participant Topic selection and Meeting before HD Resources HD allocation of Bureau, town and plots/units village cadres Livelihood Villagers 2015.7~2015.8 Labor Security All APs Discussion of training plan meetings Bureau, town and training needs village cadres Monitoring Villager 2015.9~2016.12 Town and village All APs 1) Resettlement participation cadres progress and meeting impacts 2) Payment of compensation 3) Information disclosure 4) livelihood restoration

9.1.4 Adaptation of RP based on public opinions

250. According to public consultation done by RP survey team of SASS, PPTA consultants, and PMO at provincial and county level, some reasonable opinions and suggestions of the affected people are included in the resettlement plan as following: (i) The views and concerns towards the project have been included in the RP. E.g. early commence of the project and short construction period. (ii) All resettlement options with cash compensation as pre-condition, which allow more flexible options for APs to choose based on their own situation. (iii) Based on the survey results, consultations and negotiation with local government has been carried out. The compensation standard for housing demolition was then updated based on the current local market replacement price. The updated compensation standard has been greatly increased compared with the existing rate of the government documents which is out of the date viewed by the APs. This consultation and negotiation results ensured that the project will meet the requirement of full replacement price of house relocation and will benefit all the AHs. (iv) Resettlement site options: Selection of relocation site is under discussion. APs will continue to provide opinion during the planning process.

9.2 Grievances and Redress

251. To ensure rehabilitation and improvement of the affected persons’ production and livelihood and living conditions, the provincial and county PMO closely consulted with the affected persons to reduce complaints. A mechanism is set up to provide AP with opportunities to complain and to solve problems.

9.2.1 Grievances

252. Contents of grievances include any aspect of resettlement, for example, house compensation, quantity of assets, land compensation, selection of housing sites, and income loss, relocation fees and compensations during house rebuilding, etc.

9.2.2 Grievance Procedures

253. The public participation is always encouraged in the process of compiling and implementing the RP. No substantial dispute is expected to arise. However, there may be some unforeseeable problems that occur in the process. In order to solve such potential problems effectively and ensure the project construction and land acquisition to be carried out successfully, a transparent and effective appeal channel has been set up.

254. The grievance procedures will be operative throughout the entire construction period so that they can be used by villagers to deal with problems relating to infrastructure rehabilitation, such as the reconstruction of irrigation networks, the positioning and design of drainage culverts, local road access, the use of temporary land, etc. In this way villagers will have an effective procedure to bring these matters to the attention of IA and the contractors, as well as a forum, for their timely resolution. As an additional measure, village leaders will be provided with a name and contact point (e.g. Telephone number), to whom they can raise matters relating to the road construction as and when they arise.

255. The basic procedure of the grievance solution is: APs-Village committees- Township or town government- county resettlement office-Provincial PMO and TRO.

256. The basic grievance redress system is as follows: (i) Stage 1: If APs have any dissatisfaction with RP or implementation, they may report to the villagers’ committee. The villagers’ committee or the APs may directly appeal to the resettlement offices for negotiated resolution or put forward an oral or written grievance. The resettlement offices record the complaints and resolve the problems within two weeks after the receipt of the complaints if the grievance is oral. (ii) Stage 2: If the APs who lodge the complaints are not satisfied with the results of the Stage 1, they may lodge a grievance to Hanyin District PMO and TRO, after receiving the decision. The latter will make resolution with two weeks. (iii) Stage 3: If the persons who lodge the complaints are still not satisfied, they may after receiving the decision, lodge complaints to the SPPMO for arbitration. The latter will make arbitration decision within three weeks. (iv) Stage 4: If the persons are still dissatisfied with the decision of the Stage 3, they may, after receiving the arbitration decision, appeal to administrative setups step by step (township office, county office, authorities of letters and calls, administrative supervision, disciplinary inspection and procurement department) according to Administrative Procedure law.

257. The complaints and appeal procedures will be conveyed to APs through public meetings and other information dissemination procedures such as village board, to ensure they fully understand their rights and the mechanisms for complaint and appeal. Any complaints raised by APs and resolutions must be registered in written form by resettlement office that receives these grievances.

258. At any point, if the appellant is dissatisfied, he/she may bring a suit in a civil court in accordance with the Civil Procedure Law of the PRC.

259. The APs may also express grievance to the external monitoring agency, who would then report it to Hanyin District resettlement office, Xunyang Land and Resource Bureau, and SPPMO. Alternatively, the APs may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, and if there are grievances that

stemmed from a violation of ADB’s safeguard policy, the APs may appeal directly to ADB in accordance with ADB’s Accountability Mechanism (2012).10

260. All the grievances received, oral or written will be recorded and their redress will be recorded as well and these will be made available to the external monitoring agency or ADB review missions on request. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. During the whole construction period of the Project, these appeal procedures shall remain effective to ensure that the APs can use them to address relevant issues. The above grievance redress system will be communicated to the APs at a meeting or through the RIB, so that the APs know their right of appeal. In addition, the appeal process will be published to affected population on mass media.

9.2.3 Grievance Redress Principle

261. The resettlement offices at each level must perform on site investigations on the complaints from the people and closely consult with them on their opinions before providing practical and justified redress opinions in accordance with the principles and standards specified in national laws and ADB’s involuntary resettlement safeguards principles enshrined in the RP. The complaints that could not be solved must be timely submitted to the higher resettlement department, and the RO at each level are required to provide assistance on investigations.

9.2.4 Contents and Form of Reply to Complaints

a.) Contents  Description of the complainants’ grievance;  Results of investigations;  National policies, and the ADB’s principles and standards specified in RP;  Resolution and its basis;  The complainant has the rights to appeal to the higher resettlement department or to the courts.  b.) Form of Reply  For complaint concerning individual case, the reply can be directly delivered to the complainant in written form.  For complaints frequently addressed, notify the local village or sub-village by convening village meeting or issuing documents. 9.2.5 Report of Grievance

262. During implementation of the RP, the resettlement units shall make proper records and management of the complaints and solutions, and report them to the provincial PMO in written form monthly.

10 For further information, see http://www.adb.org/Accountability-Mechanism/default.asp.

10 Implementation Plan of Relocation and Resettlement

10.1 Principle for Implementation of Relocation and Resettlement

263. The schedule for land acquisition and resettlement will be integrated with the schedule of Project construction. The basic principles for RP implementation are as follows.

264. LA and HD should be completed at least 3 months prior to the commencement of construction, and the starting time will be determined as necessary for LA, HD and resettlement. There will no commencement of related civil works until all compensation is paid and all livelihood rehabilitation measures are in place.

265. During resettlement, the APs shall have opportunities to participate in the Project. Before the commencement of LA and HD, the scope of the LA will be disclosed, the RIB distributed and public participation activities conducted properly.

266. All compensation fees will be paid to the affected proprietors directly and fully within 3 months of approval of the compensation and resettlement program for LA. No entity or individual should use such compensation fees on their behalf, nor should such compensation fees be discounted for any reason.

267. DMS based updating of the RP: (i) After the approval of the project and the completion of detailed design, the PRO will organize a survey team together with TRO and village leaders to conduct DMS. (ii) PRO will update the RP based on the DMS results and submit to SPPMO. (iii) SPPMO will submit an updated RP to ADB.

10.2 RP Implementation Schedule

268. The general resettlement schedule of the Project has been drafted based on the progress of project construction, LA and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress.

Table 10-1: Schedule of Relocation and Resettlement Activities Responsible No. Resettlement task Target Time Remark unit 1 Information disclosure FFPO, Hanyin Four towns PMO, and 4 Before May 1.1 RIB st and 11 villages town 1 2015 governments Disclosure the RP on ADB FFPO, Hanyin Before May 1.2 st website PMO and ADB 1 2015 2 RP and budget 2.1 Approve the RP and budget (including compensation CNY93.572 before Mayl Hanyin PMO standard) based on million 2015 preliminary design. 2.2 Hanyin PMO, DMS on LA and HD based / TRO and RP June, 2015 on detail design institute

Responsible No. Resettlement task Target Time Remark unit 2.3 RP updated based on DMS July-August Hanyin PMO and approval 2015 2.4 Village October 2015 Village-level restoration plan 11 villages Committee onwards 3 Compensation agreement 3.1 Village-level land September- 11 villages LRB and PMO compensation agreement October 2015 3.2 Distribution land September- compensation fee to AHs Town and village 11 villages December and allocation of land (if collective 2015 possible) 4 Implementation of livelihood restoration measures 4.1 Town, village Income restoration through 658 affected collective, Labor 2015 – 2016 business and employment households Bureau 4.2 October – Implementation of training 658 affected Labor Bureau 2015 plan households onwards 4.3 Vulnerable groups Civil Affairs assistance measures 36 HH Bureau and 2015 – 2016 implementation Hanyin PMO 4.4 Hanyin PMO Identifying and hiring HHs October – 2485 affected and, Labor for employment under December people Bureau and project during construction 2016 contractor 5 Implementation of House Relocation 5.1 June- Negotiate agreement HH by LRB, PRO and 59 AH October, HH TRO and AH 2015 5.2 October, PMO, TRO and Payment 59 AH 2015 AH onwards 5.3 All HD except Housing site allocation/Unit who chosen PMO, TRO and July-October

allocation cash AH 2015 compensation 5.4 All HD except who chosen PMO, TRO and Oct. 2015 Construction houses cash AH onwards compensation 6 Capacity building of resettlement agencies 6.1 Train relevant staff from 15 persons ADB June 2015 HPMO 6.2 Train relevant officials from FFPO and June 2015 – 100 persons county, town and village Hanyin LRB July 2015 7 Monitoring and evaluation 7.1 Project office and Establish an internal and As per RP implementation June 2015 external M&E mechanism agency 7.2 External Baseline survey One report June 2015 monitoring unit 7.3 Quarterly Project office and Start from Internal monitoring report report implementation July 2015

Responsible No. Resettlement task Target Time Remark unit agency 7.5 From July

Semiannual External 2015 External monitoring report report monitoring unit December 2016 8 Public consultation Hanyin PMO On going 9 Grievance redress Hanyin PMO On going 10 Disbursement of compensation fees 10.1 September - To implementation agency Initial funds 2015 onwards 10.2 September Implementation - To village Most funds 2015 agency onwards 10.3 Implementation Start from - To household Most funds agency and October 2015 village committee onwards 11 Start civil works 11.1 November Hanyin project Hanyin PMO 2015 FFPO=Foreign Funds Project Office in Shaanxi Provincial Transport Department, PMO=Project Management Office, LRB=Land Resource Bureau, AH=Affected Household, PRO=Project Resettlement Office, TRO=Township Resettlement Office.

11 Monitoring, Evaluation and Report

269. In order to ensure the successful implementation of the RP and realize the objectives of resettlement properly, land acquisition, property demolition, and resettlement activities of the Project shall be subject to periodic M&E according to ADBs resettlement policy, including internal and external monitoring.

11.1 Internal Monitoring

270. The internal resettlement monitoring agencies will include HPMO, finance bureau and other departments concerned (e.g., land and resources bureau). The HPMO shall develop a detailed internal monitoring plan for land acquisition and resettlement, including: (i) Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during implementation; (ii) Status of LA and HD and any variations for the final RP; (iii) Restoration of the household income of the APs after LA; (iv) Preparation of housing site and relocation after HD; (v) Restoration and resettlement of woman and vulnerable persons; (vi) Payment, use and availability of compensation fees for resettlement; (vii) Degree of public participation and consultation during resettlement; (viii) Resettlement training and its effectiveness; (ix) Establishment, staff training and working efficiency of resettlement management agencies; and (x) Any unexpected changes from the final RP and corrective plans prepared to deal with the changes.

271. The HPMO shall submit an internal monitoring report to SPPMO and ADB quarterly. Such report shall indicate the statistics of the past months in tables, and reflect the progress of LA, resettlement and use of compensation fees. HPRO will also be responsible to prepare a resettlement completion report; this can be done in conjunction with the external monitor. This report will be submitted to SPPMO and ADB.

11.2 External Monitoring

272. According to ADB’s policies, the HPMO shall employ a qualified, independent and experienced resettlement agency as the external RP M&E agency.

273. The external M&E agency shall conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, and give advice. It will also conduct follow-up monitoring of the APs production levels and living standard, and submit M&E reports to the SPPMO and HPMO. SPPMO shall submit the external M&E report to ADB semiannually.

11.3 Scope and methodology of external monitoring

(i) Baseline survey

274. The external M&E agency will conduct a baseline survey on the affected villages to obtain baseline data on the sample AHs’ production levels and living standard (living, production and income level). The production level and living standard survey will be conducted semiannually to track variations of the APs. This survey will be conducted using random

interview, key informants interview, focus group discussion and field observation to acquire necessary information. A statistical analysis and an evaluation will be made on this basis.

275. A sample of 20% of significant AH by LA, 100% of the AH by HD affected HHs, to be sampled randomly but with a representative sample of affected vulnerable groups.

(ii) Periodic M&E

276. During the implementation of the RP, the external M&E agency shall conduct periodic follow-up resettlement monitoring semiannually of the following activities by means of field observation, key informants interview, random interview and focus group discussion:  Payment and amount of compensation fees;  Training;  Support of women and the vulnerable groups;  Restoration and reconstruction of infrastructure and special facilities;  Livelihood restoration options and results;  House demolition and reconstruction;  Compensation for lost property;  Time table of the above mentioned activities (applicable for any time);  Performance of resettlement organizations;  Use of collective land compensation and the income of APs;  Income growth of labor through employment; and  If the APs benefited from the project.

(iii) Public consultation and participation

277. The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation.

(iv) Grievance redress

278. The external M&E agency will visit the affected villages and groups regularly, and interviewing the township government and IA that accept grievances about how grievances have been handled. It will also meet complainants, and propose corrective measures and advice for existing issues so as to make the resettlement process more effective.

(v) External monitoring report

279. The external M&E agency will submit a monitoring or evaluation report (in Chinese and English) to the SPPMO and XCPMO semiannually; SPPMO will forward both copies to ADB. The TOR for External M&E can be found in Appendix 4.

Table 11-1: Schedule of Monitoring and Evaluation Report Month 1 Socioeconomic baseline survey report 2015.7 2 First monitoring report 2015.12 3 Second monitoring report 2016.7 4 Third monitoring report 2016.12 5 Fourth monitoring report 2017.7 6 First evaluation report 2018.7

Report Month 7 Second evaluation report 2019.7

11.4 Post Evaluation

280. After project implementation, the post-evaluation will be implemented to evaluate the Project’s resettlement activities on the basis of M&E to (i) confirm the RP objectives have been met and (ii) to obtain successful experience and lessons in land acquisition and property demotion as a reference for future work.

281. Post evaluation will be led by HPRO, with support from EM. It should be started earlier when records are fresh but it can only be finalized when evaluation reports confirm satisfactory restoration.

Appendix 1: Relevant Laws and Policies of the PRC

282. The Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) promulgated in October 2004 defines the principles and rates of compensation for land acquisition and resettlement, land acquisition procedures, and monitoring system, and the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) play a similar role. These legal documents have become the legal basis for resettlement of the Project. The key provisions of the above policies are as follows:

Table A2.1: Abstract of the Land Administration Law and Relevant Policies Item Key points Index Land ownership The People's Republic of China resorts to a socialist public ownership i.e. an ownership by Article 2 of the Land the whole people and ownerships by collectives, of land. Administration Law of the The State introduces the system of compensated use of land owned by the PRC State except the land has been allocated for use by the State according to law. Application for Any unit or individual that need land for construction purposes should apply for the use of land Articles 43 and 44 of the construction land owned by the State according to law; Whereas occupation of land for construction purposes Land Administration Law of involves the conversion of agricultural land into land for construction purposes, the the PRC examination and approval procedures in this regard shall be required. All applications for land use for construction shall be accepted by the administrative Article 17 of the Land department in charge of land of the county government in a unified manner, and submitted Administration Regulations to higher authorities level by level after examination by the county government. If the of Shaanxi Province acquisition or use of land for construction involves farmland conversion, the administrative department in charge of land of the county government shall file an application, which shall be submitted to higher authorities level by level after examination by the county government. In case of acquisition or use of woodland, or acquisition or use of land in the urban planning area, the land user shall obtain the approval of the forestry and construction departments at or above the county level, and go through the construction land approval formalities as stipulated herein. The approved construction land must be used for the approved purpose and its use shall not be altered without authorization. If the change of use is necessary, Article 56 of the Land Administration Law of the PRC shall apply. Land acquisition The acquisition of basic farmland exceeding 35 hectares outside the basic farmland, and Article 45 of the Land authority other land exceeding 70 hectares shall be approved by the State Council. Acquisition of Administration Law of the land other than prescribed in the preceding paragraph shall be approved by the PRC governments of provinces, autonomous regions and municipalities and submitted to the State Council for the record The acquisition of not more than 35 hectares of cultivated land other than basic farmland, and Article 20 of the Land not more than 70 hectares of other land than cultivated land shall be approved by the Administration Regulations provincial government. of Shaanxi Province Land acquisition For the acquisition of land by the State the local governments at and above the county level announcement shall make an announcement and organize the implementation after the approval according system to the legal procedures. After the plan for land compensation and resettlement fees is finalized, related local governments shall make an announcement and hear the opinions of the rural collective economic organizations and peasants whose land has been acquired. Rural collective economic organizations shall make public to its members the Articles 46, 48 and receipts and expenditures of the land compensation fees for land acquired and accept their 49 of the Land supervision. Administration Law of the

Item Key points Index PRC Compensation rates In acquiring land, compensation should be made according to the original purposes of the Article 47 of the Land for land acquisition land acquired. Administration Law of the Compensation fees for land acquired include land compensation fees, PRC resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. However, the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition. Article 23 of the Land Administration Regulations (1) Acquired vegetable land or irrigated land shall be compensated for at 8-10 times the of Shaanxi Province average annual output value (AAOV) of the three years prior to acquisition of such land, acquired irrigable land, garden land or lotus root pond at 7-9 times, acquired rain-fed farmland or non-irrigated land at 6-8 times, crop rotation land at 6 times, and pasture land or fishpond at 3-5 times; (2) Acquired newly reclaimed farmland that has been cultivated for less than 3 years shall be compensated for at twice the AAOV, and the investment in development shall be compensated for; (3) Acquired housing land, threshing ground or sunning ground shall be compensated for based on the original land type; (4) The compensation rate for allocated state-owned farm, forest farm, pasture or fishing ground shall be based on subparagraphs (1), (2) and (3) of this paragraph. The compensation rate for acquired or allocated woodland shall be as stipulated by the state. Temporary land use Users who use the land temporarily should use the land according to the purposes agreed Article 57 of the Land upon in the contract for the temporary use of land and should not build permanent structures. Administration Law of the The term for the temporary use of land shall not usually exceed two years. PRC If state-owned or collectively owned land is to be used temporarily for project construction, Article 31 of the Land geologic investigation or any other purpose, an application shall be filed along with the Administration Regulations application for construction land and approved by the administrative department in charge of Shaanxi Province of land; in case of separate application for temporary land use, it shall be approved by the administrative department in charge of land of the county government in case of non- cultivated land, by the administrative department in charge of land of the prefecture or municipal government in case of cultivated land, or the administrative department in charge of land of the provincial government in case of basic farmland. Temporary land use in the urban planning area shall be first approved by the municipal administrative department in

Item Key points Index charge of construction before submission for approval. The user of temporarily used land shall use the land for the approved purpose and shall not construct any permanent building thereon. The period of temporary land use shall not exceed 2 years in general.

Table A2.2: Key Provisions of SC [2004] No.28 and MLR [2004] No.238, and their Application SC [2004] No.28—Improvement of Compensation and Resettlement Systems for MLR [2004] No.238 Land Acquisition

Article 12 County-level and above local governments shall take practical Fixation of uniform AAOV Improvement measures so that the standard of living of LEFs is not reduced by rates Determination of of measures for land acquisition. uniform AAOV multiples compensation for land Land compensation, resettlement subsidy and compensation for Fixation of integrated land acquisition ground attachments and crops shall be paid in full and timely prices for land acquisition pursuant to law. If the land compensation and resettlement areas Distribution of land subsidy pursuant to the prevailing laws and regulations are compensation insufficient to maintain the former standard of living of the LEFs or to pay the social security expenses of farmers who lose all land due to land acquisition, governments of provinces, autonomous regions and municipalities directly under the central government shall approve an increased resettlement subsidy. If the sum of the land compensation and the resettlement subsidy attains the statutory upper limit and is still insufficient to maintain the former standard of living of the LEFs, local governments may pay a subsidy from the income from compensated use of state land. Governments of provinces, autonomous regions and municipalities directly under the central government shall fix and publish the uniform AAOV rates or integrated land prices for land acquisition of all cities and counties, so that the same price applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full.

Article 13 County-level and above local governments shall take specific Resettlement for agricultural Proper resettlement of measures to guarantee long-term livelihoods of LEFs. production Resettlement by LEFs For projects with a stable income, farmers may become a reemployment Resettlement shareholder using the right to use of land used for construction by dividend distribution approved pursuant to law. Non-local resettlement Within the urban planning area, local governments shall bring farmers who lose all land due to land acquisition into the urban employment system, and establish a social security system; out of the urban planning area, in acquiring land collectively owned by farmers, local governments shall reserve necessary arable land or arrange appropriate jobs for LEFs within the same administrative area; farmers without land who do not have the basic living and production conditions shall be subject to non-local resettlement. The labor and social security authorities shall propose guidelines for the employment training and social security systems for LEFs as soon as possible.

SC [2004] No.28—Improvement of Compensation and Resettlement Systems for MLR [2004] No.238 Land Acquisition

Article 14 During land acquisition, the ownership of collective land of Disclosure of information on Improvement of land farmers and the right to contracted management of farmers’ land land acquisition acquisition procedures shall be maintained. Confirmation of Before acquisition is submitted for approval pursuant to law, the land acquisition survey use, location, compensation rate and mode of resettlement of the results Organization of land land to be acquired shall be notified to LEFs; the survey results of acquisition hearing the present situation of the land to be acquired shall be confirmed by rural collective economic organizations and farmers to be affected by land acquisition; if necessary, the land and resources authorities shall organize a hearing in accordance with the applicable provisions. The materials for notification to and confirmation by the LEFs shall be taken as requisite materials for approval for land acquisition. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of LEFs and land users. Approved matters of land acquisition shall be disclosed unless in special cases.

Article 15 If the compensation and resettlement for land acquisition has not Disclosure of approval items Strengthening been implemented, the acquired land shall not be used forcibly. of land acquisition Payment Supervision over the Governments of provinces, autonomous regions and of compensation and implementation of municipalities directly under the central government shall resettlement expenses for land acquisition formulate the procedures for the distribution of the land land acquisition compensation within rural collective economic organizations on Post-approval supervision the principle that the land compensation is used for rural and inspection of land households affected by land acquisition mainly. acquisition Rural collective economic organizations affected by land acquisition shall disclose the receipt, disbursement and allocation of land compensation fees to their members and accept supervision. The agricultural and civil affairs authorities shall strengthen the supervision over the allocation and use of land compensation fees within rural collective economic organizations.

Appendix 2: Resettlement Information Booklet

1 Project Resettlement Impact

2. The impact of land acquisition and demolition of the project involves four towns and 11 administrative villages. See Table 1for reference.

Table 1: List of Towns and Administrative Villages affected by Road Components Name of village/ neighborhood committee Road Components Name of town/ street affected affected Dongwan Village, Zaoyang Village, Longquan Zaoyang town and Duanjiahe Anxun Highway Village Beian Village, Gaobiliang Village, town Xuejiawan Village and Lijiazhuang Village Heihu Village, Tangtai Village, Guiping Village Yandong Highway Yanban town and Yinghu Town and Dongqiao Village Source: Field resettlement survey in July and August 2014.

1.1 Impact of Permanent Collective Land Acquisition

3. The project will permanently acquire 463.96 mu rural collective land of the above- mentioned areas, including cultivated land of 132.89 mu (28.64%), housing plot or homestead of 18.73 mu (4.04%), barren land (Slop unused land, poor soil land, rocks, river bed, etc.) of 20.84 mu (4.49%) and forest land of 291.5 mu (62.83%).

Table 2: Permanent Land Acquisition Impact by Land Type and Affected Villages Village Permanent land acquisition (mu) No. of committe Fore Barre No. of affecte Road Town e/ Cultivat Homeste st n Subtot affecte d communi ed land ad land land al d HH perso ty n Dongwan 6.31 0.68 4.01 0 11 45 135 Zaoyan Zaoyang 26.57 4.9 32.99 0 64.46 150 600 g Longquan 12.68 1.41 0 0 14.09 120 425 Beian 12.71 0 8.71 0 21.42 40 135 Anxun Gaobilian 11.38 3.2 73.2 13.45 101.23 32 121 Highwa Duanjia g y he Xuejiawa 32.06 6.42 74.5 0 112.98 165 627 n Lijiawan 1.73 0 1.71 0 3.44 9 35 195.1 Subtotal 103.44 16.61 13.45 328.62 561 2078 2 Yandon Heihu 9.52 0.23 0 3.67 13.42 13 52 g Yanba Tangtai 10.68 0.67 20.15 3.72 35.22 21 85 Highwa Guiping 8.47 0.87 46.57 0 55.91 28 112 y Yinghu Dongqiao 0.78 0.35 29.66 0 30.79 35 158

Village Permanent land acquisition (mu) No. of committe Fore Barre No. of affecte Road Town e/ Cultivat Homeste st n Subtot affecte d communi ed land ad land land al d HH perso ty n Subtotal 29.45 2.12 96.38 7.39 135.34 97 407 Total 132.89 18.73 291.5 20.84 463.96 658 2485 Proportion % 28.64 4.04 62.83 4.49 100 / / Data source: Resettlement Survey in July and August 2014.

1.2 Temporary Land Occupation

4. In the construction scheme, Yandong Highway involves temporary land occupation, including dry land occupation of 29.16mu, and paddy field of 17.45 mu, totaling 46.56 mu cultivated land. Compensation of CNY 1,300 per mu per year will be paid to the affected households directly. After the construction of the project, the land will be fully recovered by the contractors.

1.3 House Demolition

5. The project will involve housing demolition of 11,887m2, including brick-concrete houses of 8,923m2 (75.1%), brick-wood houses of 960m2 (8.1%), earth-wood houses of 1,793m2 (15.1%) and simple structure or makeshift houses of 211m2 (1.7%). All buildings are rural residential houses; there are no urban houses. A total 59 households with 251 people are affected by the demolition. About 70% of the house demolition will be for the Anxun Highway.

Table 3: Impact of Demolished Rural Residential Houses House demolition (㎡) Brick Road Town Village Brick- Earth- Makeshift Sub- AHs APs - Concrete wood houses total wood Dongwan 650 80 0 0 730 2 8 Zao Zaoyang 3270 0 770 0 4040 11 44 yang Anxun Longquan 1106 0 0 0 1106 4 15 High Duanjiahe way Duan Gaobiliang 2150 0 80 0 2230 7 25 jiahe Beiyuan 1160 810 160 0 2130 17 64 Subtotal 8336 890 1010 0 10236 41 156 Heihu 0 0 150 0 150 1 4 Yan Yanba Tangtai 76 0 254 126 456 6 27 dong High Guiping 311 27 379 30 747 7 36 way Yinghu Dongqiao 200 43 0 55 298 4 28 Subtotal 587 70 783 211 1651 18 95 Total 8923 960 1793 211 11887 59 251 Proportion (%) 75.1 8.1 15.1 1.7 100 / / Data source: FS report, Preliminary Design and Field RP survey in July-August 2014.

1.4 Affected Population

6. A total of 658 households with 2,485 people are affected by the projects, including 599 households with 2,234 people affected by land acquisition only, 59 households with 251 people both land acquisition and house demolition. No enterprise and public institution is affected by the land acquisition and demolition.

Table 4: Affected Population Affected Affected by County Road by LA and Total* LA only HD AHs 520 41 561 Anxun Highway Aps 1922 156 2078 AHs 79 18 97 Hanyin District Yandong Highway Aps 312 95 407 AHs 599 59 658 Total Aps 2234 251 2485 Overlap Including housing plot land but no other land. Data source: FS report, Preliminary Design and Field RP survey in July-August 2014.

2 Legal Framework and Policies

2.1 Policy Basis

7. The PRC relevant laws and regulations include the following:  The Land Administration Law of the People’s Republic of China (Amended at the Eleventh Session of the Standing Committee of the Tenth National People’s Congress on August 28, 2004; and effective as of then);  Regulations on the Protection of Basic Cultivated Land (No.257 Decree of the State Council of The People’s Republic of China on December 27, 1998);  Interim Regulations on Cultivated Land Use Tax of the People’s Republic of China (No. 511 Document of the State Council issued on December 1, 2007 and effective on January 1, 2008);  Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28);  Notice on the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of China (November 3, 2004, Guotuzifa [2004] No. 238); and  Real Property Right Law of the People’s Republic of China (Order of the People’s Republic of China No. 62, in effect as of October 1, 2007).

8. Relevant Policies Of Shaanxi Province, Ankang City:  Regulations on the Implementation of the Land Administration Law of the People’s Republic of China of Shaanxi Province (adopted at the Twelfth Session of the Standing Committee of the Ninth Provincial People’s Congress on November 30, 1999, and effective on January 1, 2000);  Regulations on Land Acquisition for Construction Project of Shaanxi Province. No.78 document issued and effective as of January 8, 2002 by Shaanxi Provincial People’s Government;  Notice on the Average Standard of Unified Annual Output Value and Section Comprehensive Land Price on Land Acquisition in Shaanxi Province [No. 36 Shaanzhengbanfa (2010)]; and

 Supplementary Notice on Related Issues on the Center of Ankang City Construction Land Acquisition and Demolition and Farmers Affected by Land Acquisition Old-age Insurance (An Zheng Fa (2009) No. 15).

9. ADB’s Policy Requirements On Involuntary Resettlement  ADB Safeguard Policy Statement (2009), Safeguard requirement 2: Involuntary Resettlement; and  “Gender Check List: Resettlement”, Asian Development Bank, February 2003.

2.2 Compensation Standards for Land Acquisition and House Demolition

10. Based on the law and local regulations, the Hanyin sub-project will adopt the following standards for permanent land acquisition and house demolition.

Table 5: Compensation Standard for the Project Land Unit (CNY/mu) Category Paddy Plain Sloping Home Forest Barren field Dryland Dryland stead land land Compensation No 60,000 54,000 45,000 48,600 22,500 Standard compensation

11. The compensation rate for temporary land occupation is CNY 1,300 per year. Full recovering policy will be applied after project completion. Occupation will be for a maximum of 2 years and the land will be restored to its pre-occupation standards prior compensation for house demolition as follows.

Table 6: Compensation Standard for House Demolition Base

Type Structure type Unit price Remark (Yuan) CNY Housing land 48600 /mu CNY Brick-concrete 2 1000 /m The compensation for the house is

CNY determined based on market price Compensation Brick-timber 2 520 /m evaluation but not less than the proposed for house CNY base price. Earth-wood 2 400 /m CNY Makeshift house 2 200 /m CNY 1. Relocation subsidy: CNY1000 for a household for Moving subsidy 2 /m one time. 2. Transition subsidy: CNY250 for a household with three or below members monthly; CNY300 for a

household with 4-6 members monthly; andCNY400 for CNY / Transition subsidy a household with 7 or above members monthly. month Other subsidy Transitional period is six month. In case of time for house exceeding, the actual time will be counted. Signing CNY agreement 4000 Empty and hand over the house Early /HH moving in 20 days reward Signing CNY 2000 Empty and hand over the house

Base

Type Structure type Unit price Remark (Yuan) agreement /HH in 30 days Signing CNY agreement 1000 Empty and hand over the house /HH in 40 days

3 Relocation of Affected Households of House Demolition

3.1 Relocation options

12. In all cases, cash compensation for housing plot, house structures including other structures and attachments based on the replacement costs and allowances will be provided. The Project also provides several options for APs to choose based on their own conditions, which will positively facilitate to restore or improve their living condition smoothly. The major options include:

(i) Cash Compensation without housing lot allocation

a. Cash compensation without new house construction

13. For those households with alternative houses in the city or nearby places or who plan to buy commercial residential house in town and then to give up reconstructing new houses, a written application is required. In addition to cash compensation of housing lot and replacement price of house structure including annex buildings paid in cash to AH directly, an additional resettlement subsidy of CNY 10,000 per person and CNY 10,000 cash reward per person will be granted once the written application is approved.

b. Cash compensation with existing house expanding or rehabilitation

14. Households with an existing house have potential to add more floors, or where the housing lot is big enough to add an annex building, the AP does not need another housing lot. If APs choose this option, a written application is required. In addition to cash compensation of housing lot and house structure including annex buildings, an additional resettlement subsidy of CNY 10,000 per person and CNY 10,000 cash reward per person will be granted once the written application is approved.

c. Reconstruct new house with purchase housing lot by APs

15. For those who choose to construct new houses by themselves and purchase housing lot by themselves, or they use their existing housing land, the project will compensate their housing lot and structures according to the Project standards. After several discussions with AHs, it was agreed that the current compensation standard is generally enough to purchase similar condition housing lot in the same area. If an AH purchases a housing lot cheaper than the compensation standard, the savings belongs to the AH. If a household chooses to reconstruct their new house in a better place (e.g. closer to town center area or a wider space) voluntarily, they will need to pay the additional costs by themselves.

(ii) Concentrated resettlement in New Rural Village Development Plan

16. For those who are willing to purchase a new house in residential area under a new rural village development program, cash compensation of housing lot and replacement price will be paid directly to AHs. In addition, discount has been negotiated and committed. Both location and quality of the house will be better than the proposed demolition houses in general. The price committed is based on the construction costs, higher than the compensation standard but lower than the commercial residential house. The surveyed AHs will continue to discuss the details in terms of concentrated resettlement sites selection.

(iii) Individual reconstruction on the government allocated housing site

17. If the households have difficulties finding a housing lot, but still want to reconstruct their new houses, the town government has committed to provide the AHs with housing lots acceptable to them. The price will not exceed the compensation standard regardless of actual costs. There will be no additional cost to the AHs.

18. The provided housing lot can either be located in a concentrated area or a single housing lot. In either case, water, electricity supply and road will be made available, and the land leveling will be done by the project. The design fee also will be covered by the project.

19. The selection of the relocation site and plot should be done before the end of June 2015.

20. All affected villages will actively participate in arrangements and negotiation with town government.

3.2 Concentrated resettlement site

21. According to the preliminary decision of Duanhiahe Town, a resettlement site will be built in the Town. One option is trying to be integrated into new rural village development program, but has not decided which one yet.

22. The price for each house type is based on the location, area, decoration and structural assessment. It is estimated that the price will be CNY1000-1800/m2. The resettlement households can choose different house types and sizes according to their economic condition and housing requirement. As in all cases with cash compensation for housing land, house and its annex buildings, the selection of type and size in each site is fully voluntary and depends on each household. If the chosen type and size is smaller than their originals, the saving belongs to APs, but if the selection is larger, the AH needs to pay the additional cost by themselves. As the new houses are much better than the original houses in terms of location and construction quality, the price is higher than the compensation standard. All APs view that is reasonable and acceptable. In any case, if the APs do not satisfy the concentrated relocation option, individual relocation by allocated housing site in a similar area is available.

3.3 Other subsidy policy:

23. The affected households will be entitled the following rights and interests: (i) Preferential labor training; (ii) Benefits from the social security policy in project implementation area including eligible personnel into Endowment Insurance LEF in Ankang; and

(iii) Access to the suitable jobs created by the project directly and indirectly, including jobs under project implantation agencies and jobs relating to enterprises attracted into the project area.

4 Income restoration assistance measures of Land Acquisition

(1) Cash compensation and distribution

24. The affected villages/village groups will be compensated in cash based on the standards of this sub project adopted. The land compensation distribution from village to AP has two scenarios: 1) If the land acquisition is a relatively large amount and the village has not enough reserved land to be allocated to APs, which is common in the project area, 100% of the compensation will be distributed to APs directly. 2) If the land acquisition amount is small and the village has enough reserved land (e.g. returned from a household which has moved to the city) to be allocated to APs to cover their land loss fully, then the APs will be allocated land and the compensation will be reserved for village infrastructure maintenance or improvement. Standing crops compensation rate is CNY 1200, of which 100% will be paid to the affected households. This compensation will be added to the overall compensation standard of the AH.

25. To ensure that the affected households use the compensation in a rational manner, the PMO and other related agencies will provide guidance and required training. The following are restoration options and assistance measures for permanent land acquisition. (ii) Agricultural resettlement

26. For the garden seedlings and fruit tree plantation, training will be provided.

(iii) Arranged Jobs

27. Project generated job opportunities during construction and operation will be given priority to affected people.

(iv) Non-farming employment/business

28. Market information and skills about handicraft, local non-farming jobs or business opportunities will be provided.

(v) Training

29. Based on the above restoration options chosen by the AHs, training programs will be designed to meet the specific needs and preferences of AHs.

30. For the households that choose agricultural restoration measures, agricultural technical training such as gardening plant seedling producing, fruit tree plantation and other cash crop plantation will be provided as required.

31. For the non-farming employment, skill training will include landscaping, house decoration, handicraft production, car repair, and other skills.

32. Special training to the significantly affected households will be designed according to their final selection of non-farming business.

33. Additionally, training in the form of farmer-back-farmer training will be organized. The farmers with skills in cash crops could be invited to share experiences and skills to the new growers in the same or other villages. It will be useful to organize study tours to other villages for APs who are interested in planting new cash crops. It will either be organized by PMO directly or by entrusted government agencies such as agriculture bureau, forestry bureau, or women’s federation. In terms of off-farming training, it will be delegated to labor and social insurance bureau.

5 Assistance to Vulnerable Groups

34. A support fund for vulnerable groups will be established under the project to support vulnerable groups affected by the project. The main affected vulnerable groups are the poor, single parent family and women-led family, Wubaoi (five-guarantee households), households affected by disability and illness. A series of additional measures have been put in place to help them in livelihood restoration and relocation restoration.

(i) Giving priority to vulnerable groups in resettlement measures

a) Land acquisition affected households:  Priorities will be given in obtaining replacement land through allocation of reserved land, or through land transfer if the vulnerable AH chooses to restore their income through agricultural measures;  The households with a labor force will be given priority in skill training and priorities given in provision of arranged jobs by the project and local government. Eliminating zero employment of poor households (with a labor force) is the target of government poverty alleviation; it will also be the target of this project by giving priority of project generated jobs to them;  Include all eligible AH into LEF endowment insurance. The new rural endowment insurance will be an optimal option for the AH on a voluntary basis; and  Provide preference loan to the significantly affected households if necessary in developing non-farming business, such as purchasing vehicles for transport business, operating repair shops, developing other income generating business, detailed plan will be discussed during implementation.

b) House demolition affected households:  Priorities will be given to vulnerable group to choose resettlement locations;  If the vulnerable households who choose to reconstruct new house by themselves, priority will be given in arranging relocation housing land. In addition, a one-off extra poor subsidy support payment of CNY 5,000 will be provided;  A one-off advance moving reward of CNY 3,000 will also be provided to vulnerable households if they meet the advance moving criteria; and  Minimum size housing will be guaranteed for the poor.

(ii) Including eligible vulnerable groups in MLSS as a priority

35. According to the MLSS policy of Hanyin District for rural residence, eligible vulnerable groups affected by the Project will be included in the MLSS in time and receive MLSS benefits so as to ensure that the per capita net income of each rural AH is not less than CNY 2,500 a year and the per capita income of each urban AH is not less than CNY 209/month.

(iii) Providing rural medical assistance to eligible vulnerable groups

36. Rural medical assistance will be provided to eligible vulnerable groups to ensure them to be included in New rural co-operative medical system to solve their difficulty in receiving medical care. Hanyin District and Xunyang County People’s Government will provide medical assistance for the rural residents in line with the policies.

6 Grievance Procedures

37. Any APs ca put forward grievance regarding problems of land acquisition and resettlement. The basic procedure of the grievance solution is: APs-Village committees- Township or town government- county resettlement office-Provincial PMO resettlement division.

38. The basic grievance redress system is as follows: (i) Stage 1: If APs have any dissatisfaction with RP or implementation, they may report to the villagers’ committee. The villagers’ committee or the APs may directly appeal to the resettlement offices for negotiated resolution or put forward an oral or written grievance. The resettlement offices record the complaints and resolve the problems within two weeks after the receipt of the complaints if the grievance is oral. (ii) Stage 2: If the APs who lodge the complaints are not satisfied with the results of the Stage 1, they may lodge a grievance to Hanyin District PMO and TRO, after receiving the decision. The latter will make resolution within two weeks. (iii) Stage 3: If the persons who lodge the complaints are still not satisfied, they may after receiving the decision, lodge complaints to the SPPMO for arbitration. The latter will make arbitration decision within three weeks. (iv) Stage 4: If the persons are still dissatisfied with the decision of the Stage 3, they may, after receiving the arbitration decision, appeal to administrative setups step by step (township office, county office, authorities of letters and calls, administrative supervision, disciplinary inspection and procurement department) according to Administrative Procedure law.

39. The complaints and appeal procedures will be conveyed to APs through public meetings and other information dissemination procedures such as village notice boards, to ensure they fully understand their rights and the mechanisms for complaint and appeal. Any complaints raised by APs and resolutions must be registered in written form by resettlement office that receives these grievances.

40. At any point, if the appellant is dissatisfied, he/she may bring a suit in a civil court in accordance with the Civil Procedure Law of the PRC.

41. The APs may also express grievance to the external monitoring agency, who would then report it to Hanyin District resettlement office, Hanyin District Land and Resource Bureau, and SPPMO. Alternatively, the APs may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, and if there are grievances that

stemmed from a violation of ADB’s safeguard policy, the APs may appeal directly to ADB in accordance with ADB’s Accountability Mechanism (2012).11

7 Implementation Organizations of Relocation and Resettlement

S102 Construction Headquarter Address: Telephone: Habin District Sub-PMO Address: Telephone: Zaoyang Town Government Address: Telephone: DuanjiaheTown government Address: Telephone: Yanba Town government Address: Telephone: Yinghu Town Government Address: Telephone:

11 For further information, see http://www.adb.org/Accountability-Mechanism/default.asp.

Appendix 3: TOR for External Monitoring and Evaluation

Terms of Reference: External Monitoring – Resettlement Plan

A. Purpose resettlement monitoring and evaluation

1. According to ADB’s SPS 2009 on involuntary resettlement, the resettlement work of this project will be subject to external M&E. The monitoring will ensure that the resettlement processes are being implemented in accordance with the requirements set out in the RP. The external M&E will also undertake an evaluation of changes in peoples’ standard of living as a result of the project and project-related LAR activities. A TOR is drafted and a firm/institute with 8–10 years of relevant social and resettlement experience will be engaged by CQS method. The external monitor will work in close coordination with the Social Safeguards and Social Development Specialist and Gender Specialist to be contracted for the capacity building.

2. M&E reports will be submitted to ADB and FIDC regularly twice a year during the implementation period and once a year following project completion. Through external M&E, ADB and the EAs can fully understand if the LAR work is implemented on schedule and according to the quality standard, point out existing issues, and propose suggestions for improvement.

B. Scope and Methods of External Monitoring

(i) Baseline Survey

3. The external monitoring agency will undertake a baseline survey of the villages affected by land acquisition in the project, and collect baseline data on the production level and standard of living of the monitored displaced households (standard of living, production, and income levels). The survey of production level and standard of living will be conducted semiannually to track variations. The survey methods include follow-up survey of sample households (minimum sample size: 10% of households affected by land acquisition, 20% of households affected by house demolition, 40% households significantly affected, 50% of affected villages; the households will be sampled randomly). A statistical analysis will be made on this basis for evaluation.

(ii) Regular Monitoring and Evaluation

4. During the RP implementation, the external monitoring agency will perform regular follow-up resettlement monitoring of the following activities twice a year through field observation, follow-up survey of the sample households, and random interview with the displaced persons. The external monitoring agency will monitor: (a) the progress of disbursement of compensation for LAR and house demolition; (b) the progress of selection and preparation of resettlement sites including provisions for civic amenities, construction of new houses, and adequacy of construction; (c) institutional capacity of the resettlement office—adequate trained staffing, office space and equipment, and provisions for ongoing training; (d) financial capacity of the PMO, particularly the budgetary arrangements and cash flow for resettlement activities;

(e) the process of public participation and consultation, ensuring that the public participation and consultation schedule is being followed and outcomes are being incorporated in resettlement implementation process; (f) the functioning of the GRM; (g) the progress of livelihood rehabilitation plans and training, restoration of productive assets, and livelihood systems; (h) rehabilitation of affected shops; (i) that the vulnerable groups are being provided support in accordance to the criteria set out in the RP; (j) the progress of restoration and reconstruction of infrastructure and special facilities; (k) implementation schedule for the RP activities; and (l) the overall RP implementation process and if any significant involuntary resettlement are identified, the agency will prepare a corrective action plan to address such issues.

5. In addition, the external monitor will be responsible for verifying the internal monitoring reports of IA on implementation and progress of the RP. These internal monitoring reports are prepared by the IA as part of the quarterly progress report (under PPMS).

6. On the basis of the baseline survey, the external monitoring agency will evaluate the project impacts and will provide a “without” and “with” project comparative analysis.

(iii) Monitoring Indicators

7. The following indicators shall be monitored and evaluated in accordance with principles, entitlements, and rehabilitation strategies/plans set out in the RP: (a) Progress: including preparation, implementation of land acquisition, house demolition, resettlement site construction, housing relocation and rehabilitation of livelihoods and living conditions; (b) Quality: including resettlement implementation, civil construction quality, timeliness, minimal disturbance/inconvenience and transition time, and degree of APs’ satisfaction; (c) Entitlements: timely allocation of full compensation entitlements and proper and timely use of funds, and adequate and timely availability of funds for resettlement site construction; (d) Economic/income conditions: household economic development before and after resettlement, including assets, production materials, subsistence materials, income, savings and debts, income generation potential, etc.; (e) Living conditions: living environment before and after resettlement, including traffic, education, sanitation, social services, commercial service facilities, etc. in the new resettlement sites; (f) Livelihood/employment: change in livelihood (income sources) and employment, including employment rate, assistance to the different APs, especially for women, and vulnerable APs, and seriously-affected households, such as those at risk of impoverishment due to land loss or housing loss; training and skill enhancement; (g) Community development: local economy in resettlement sites, environmental development, neighborhood relations and safety, and public opinions (by gender and age groups) after resettlement; and (h) Conditions of the vulnerable groups and seriously-affected households: including before and after situations of those people.

(iv) Monitoring and Evaluation Method

8. The external monitoring agency will use both quantitative and qualitative methods to undertake the M&E such as: (a) Surveys – questionnaire surveys based on random sampling with a minimum sample size of 10% of households affected by land acquisition, 20% of households affected by house demolition and 50% of the affected villages. These surveys will be done on annual basis to assess the impact on yearly basis. Out of the above indicated survey population, the external monitor will select a suitable sample size and will undertake follow-up surveys by using tracer survey method. It will require following the same respondents on a yearly basis to assess the project impacts. (b) Qualitative interviews and focus group discussions – with project affected persons, village and community representatives, officials in PMO and other government departments that are involved in the resettlement process; and (c) Along with written materials, photos, audio and video records, real objects shall also be used. (d) Reporting (A external monitoring report framework is provided as appendix that should be followed for reporting).

9. The RP monitoring report will include: (a) Summary of findings and conclusion of investigations and evaluation; (b) Major problems identified (existing and potential); (c) Recommended mitigation or prevention measures which need to be taken; and (d) Assessment of previous follow-up actions.

10. Reports will be submitted to ADB every 6 months during the resettlement implementation. After the preparation of resettlement completion reports, annual evaluations will be conducted for 2 years, or until all issues have been successfully resolved. The final evaluation report should summarize monitoring results and should clearly establish whether resettlement has been successfully completed. SDAP/GAP Implementation verification: Progress of SDAP and GAP implementation will be reported by the IA through its internal monitoring reports prepared on a quarterly basis as part of the PPMS. The external monitor will review and verify these quarterly reports and will prepare a consolidated annual report as an appendix of one of the monitoring report and will submit it to the ADB.

11. All reports will be provided in English and Chinese. It should be ensured that information on the progress and status on all aspects of LAR activities will be provided to the external monitor for verification, including records of grievances.

(v) Consultant Specifications and Inputs

12. The specialist shall have a degree in a relevant subject (sociology, anthropology, or related subject) with 10 years’ experience in M&E of projects funded by ADB or similar 40 international development funding agencies. The consultant’s inputs will be spread intermittently over the life of the project for a total of 12 months.

(vi) Monitoring Budget

A total budget for RP is about CNY 264,000.

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