Ethnic Minority Development Plan

November 2011

People’s Republic of China: Hunan Flood Management Sector Project (Luxi County Subproject)

Prepared by the Hunan Provincial Government for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 1 November 2011) Currency unit – Yuan (CNY) CNY1.00 = $0.1572 $1.00 = CNY6.3595

NOTE

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

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

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

Luxi County Urban Flood Control Subproject

ETHNIC MINORITY DEVELOPMENT PLAN

Luxi County PMO

1 Table of Contents

I. INTRODUCTION ...... 3

II. BACKGROUND ...... 4

A. PROJECT DESCRIPTION………………………………………………………………………………………4 B. ETHNIC MINORITIES IN HUNAN……………………………………………………………………………….5 C. LEGAL FRAMEWORK………………………………………………………………………………………….5

III. ETHNIC MINORITIES IN THE PROJECT AREA ...... 7

A. METHODOLOGY……………………………………………………………………………………………….7 B. ETHNIC POPULATION IN FOUR RIVER BASINS………………………………………………………………7 C. ETHNIC MINORITIES IN PROJECT COUNTIES………………………………………………………………...8 D. ETHNIC MINORITIES IN LUXI COUNTY………………………………………………………...8 E. ETHNIC MINORITIES IN PROJECT PROTECTED AREAS (PPA)…………………………………………….11 F. ETHNIC GROUPS AND THEIR DISTRIBUTION……………………………………………………………….14 G. SOCIOECONOMIC CHARACTERISTICS OF MINORITY COMMUNITIES…………………………………………………..15 H. On Going Minority Development Programs………………………………………………...... 17

IV. PROJECT IMPACTS ON MINORITIES ...... 20

A. PAST FLOOD IMPACT………………………………………………………………………………………..20 B. PROJECT BENEFITS FOR DIFFERENT BENEFICIARIES…………………………………………………….21 C. POTENTIAL NEGATIVE IMPACTS OF RESETTLEMENT……………………………………………………...24 D. EXPECTATIONS AND CONCERNS……………………………………………………...... 24 E. POVERTY REDUCTION MEASUREMENT……………………………………………………………………..29

V. ACTION PLAN ...... 31

A. SPECIFIC MEASURES/ACTIVITIES…………………………………………………………………………..31 B. BUDGET AND FINANCING SOURCES………………………………………………………………………..31 C. IMPLEMENTATION ARRANGEMENT………………………………………………………………………….31 D. MONITORING AND EVALUATION (M&E)…………………………………………………………………….38

2

I. INTRODUCTION

This Ethnic Minorities Development Plan (EMDP) is prepared to ensure equitable sharing of the project benefits and mitigation measures by the concerned minority communities and individuals in the project area of the Luxi Flood Control Subproject, which is part of Hunan Provincial Flood Management Project in Hunan Province, People‟s Republic of China (PRC). The EMDP for Luxi Subproject is based on the PPTA‟s Resettlement Plan, the Social and Poverty Assessment, and consultation with ethnic minority groups, local county governments and their respective line agencies. A summary of distribution and socioeconomic characteristics of ethnic minorities in the project areas – four river basins, and 35 subprojects will be the context for such assessment. By means of investigating, consulting, and visiting Luxi County or department, association, and community related to the project area, ethnic minority distribution and socioeconomic level and poverty status of Luxi County and project area has been felt out fundamentally, on this basis, reinforcement of socioeconomic development and poverty supporting plan of the ethnic minority community has been put forward. Based on review of social and poverty conditions of ethnic minorities in both Luxi County and the project protected areas, adequate provisions to enhance the economic conditions of minority groups have been integrated in project design. Provisions for special mitigation measures have been included in the resettlement plan, which will help ensure that ethnic minorities adversely affected by resettlement will also benefit from the project. Current government policies and programs for ethnic minorities further help to protect and enhance project benefits to ethnic minority groups. This plan targets the Miao, Tujia and other nationalities in the project area, which account for about 6.8%, 4.2% and 0.08% of the total minority population in Luxi County.

3 II. BACKGROUND A. Project Description

The proposed Luxi Flood Control Subproject is one of the 35 subprojects under Hunan Flood Management Project. The subproject is located at the urban area of Baisha town (a town where the county government is located) of Luxi county town at the west part of Hunan Province, which is under the jurisdiction of Xiangxi Autonomous Prefecture. The county town-Baisha town is situated at the end of the left bank of Wuqiangxi reservoir at middle reaches of Yuanshui River, which is the political, economic, and cultural center of the county, and the land area of the county is 1566km2. The system of Yuanjiang River is one of the four main rivers in Hunan. The river flows into the west of Luxi County, passing through low lying hills, with low lying grade I and II floodplain terraces adjacent to the rivers. Luxi county town is situated in the left bank of Yuanshui River, the river passes Baisha town of Luxi county town in shape of “S“, which is the narrowest section of Yuanshui River within Luxi county. The right bank is steep cliffs, and Baisha town section in the left bank is of flat topography. Luxi county town faces rivers in three directions, most houses are built along the river, the urban area is of lower flood control capacity currently, and the low-lying riverside terrace could only resist 1 in 5 years flood. And, it often brings serious flood and waterlogging disasters to Luxi county town. In 1996, the largest flood affected 9200 persons, urban houses of 0.145 million m2 were inundated, and the direct economic loss hit CNY 120 million yuan due to cut off of power supply and communications. The major purposes of the proposed Luxi subproject include: （i）to protect Luxi from flood threat;（ii） to strengthen the management of Yuanshui River drainage basin, which is a component of Hunan Flood Management Project. The subproject includes:

 One newly-built flood control dike, with a total length of 2.715km.

 One newly-built flood control highway on the levee crown, with a total length of 2.582km.

 Four newly-built culverts.

 Construction of flood control commanding system and allocation of necessary administrative facilities. With all these completion, the protection area will reach 2.0km2. According to the feasibility study report, the total static investment of Luxi subproject will reach CNY 57.59 million, out of which, 39 percent would be financed by ADB loan.

B. Ethnic Minorities in Hunan

There are as many as 55 ethnic minority groups1 in Hunan making up a population of 8.33 million or 12.2% of Hunan‟s total population. There is one autonomous prefecture of ethnic minority in Hunan, which administrates 8 counties, 7 minority autonomous counties with more than 50% of the populating as minorities and 2 unofficial minority counties enjoying minority county benefits. Besides these minority counties, there are 100 ethnic minority townships in 34 counties. In Hunan, there are 8 minorities with a population over 10,000, they are Tujia, Miao, Dong, Yao, Bai, Hui (Muslims), Zhuang and Mongolia. These eight groups make up over 99.3% of the total minority population of Hunan. Most of them are located in the western Hunan (i.e., the Xiangxi Prefecture, Huaihua and Zhangjiajie municipalities), and the minorities in the western Hunan account for 75% of Hunan‟s total minority population. Table 2-1 presents the details based on the 5th national census.

1 In other words, all the 56 ethnic groups within China (55 ethnic minority groups and Han) are represented in Hunan.

4 Tab 2-1: Minority People in Hunan Province (2007)

Items Ethnic group Population % of minority % of total groups population Main group Han 59,723,105 87.8 Tujia 3,536,976 42.4 Miao 2,401,869 28.8 Dong 1,027,390 12.3 Yao 951,161 11.4 Bai 175,836 2.1 Minority groups Hui 126,578 1.5 Zhuang 33,925 0.4 Mongol 23,804 0.3 Other 56,364 0.7 Subtotal 8,333,902 100 12.2 Total 63,274,200 68,057,007 Source: Fifth Consensus data, Hunan Statistical Year Book 2008.

C. Legal Framework

1. Policy, Plans and Program

The 1954 Constitution specified mechanisms for exercising autonomy in minority areas. The 1974 Constitution reduced the financial autonomy, and other powers, of these areas. Some of these powers were restored in the 1978 Constitution and further extended by the State Council (1980) and the National Law of 1984. Since the early 1980s governments of autonomous areas have been able to decide on economic policy, including what to produce, some latitude in allocating government subsidies, and within set guidelines, education and budgeting. In 1982 the formulation of the one child per family directive by the State Council advocated more flexible approaches to planned parenthood amongst the minority nationalities. Minority areas have special access to relief funds, loans, subsidies and tax relief, including a lower tax on grain, to assist in economic development. Minority people also benefit from points score system which places them in a higher rank than the main stream Han for university admissions. For the 8 provinces where minorities are concentrated (Guizhou, Yunnan and Qinghai provinces and the five minority autonomous regions of Inner Mongolia, Xinjiang, Guangxi, Ningxia and Tibet) government subsidies in the past have been substantial. 2. ADB Policy on Indigenous People in Project Areas (PA)

The Asian Development Bank (ADB) notes that the social indicators, economic status and quality of life of minority peoples are often below those of the mainstream population. While fully recognizing the sovereignty of the borrowing country, ADB accepts that it has a responsibility for ensuring (i) equality of opportunity for national minorities and (ii) that its operations and assistance to developing member countries do not negatively affect the cultural identity, welfare and interests of national minorities. Where ADB-assisted projects will potentially cause adverse affects on national minorities, ADB requires the borrowing country (or project initiator of private sector) to prepare an Minorities Population and Development Plan (MPDP) acceptable to ADB. A MPDP should describe the socio-economic characteristics of minorities affected by the project, identify significant project impacts, both positive and adverse which affect them, and should consider modifying or redesigning the project to minimize adverse effects and/or include an acceptable

5 compensation plan. The MPDP also provides procedures for project implementation, monitoring, and evaluation of how to handle minority affairs. The ADB‟s Policy on Indigenous Peoples (1999, Manila) sets out the criteria for determining whether or not an MPDP should be prepared. The key criteria are: ”… indigenous peoples should be regarded as those with a social or cultural identity distinct from the dominant or mainstream society, which makes them vulnerable to being disadvantaged in the processes of development.” (p.6, op cit); ”the Initial Social Assessment determines that indigenous peoples are likely to be affected significantly...or that indigenous peoples are disadvantaged or vulnerable to an intervention because of their social and cultural identity, an MPDP must be developed.” (p.18, op cit); An EMDP should be prepared if a project “affects indigenous peoples adversely and significantly” (p. 19, op cit).

6 III. ETHNIC MINORITIES IN THE PROJECT AREA

A. Methodology

In order to understand the basic social and economic profiles of the affected people and identify the impacts to be brought by the Project, a social and poverty assessment was carried out by the PPTA consultant with the assistance of Luxi Subproject PMO, which included collecting secondary data, and conducting interviews among different stakeholders. The focus group discussions and sample household survey, together with consultation of local government agencies provided much of the quantitative and qualitative materials that were used to prepare this report, which include stakeholder analysis, needs and concerns among women and ethnic minorities, and poverty profile for affected communities and individuals. It has also been used as the basis for identifying the potential project benefits and impacts, assessing their significance, and formulating complementary measures to enhance positive benefits and mitigate negative impacts. There are 5 residential committees and 3 village committees in Baisha Town under the jurisdiction, the project area of Luxi County. There are 10,619 households and 29,911 persons with 2.8 persons per household in Baisha Town under the jurisdiction of Luxi County. Among the total population, females account for 48% and males account for 52%. At the end of 2007, the population of the urban area of county town is 23,390, accounting for 78.2% of the total population. There are 19,612 minority persons in PA of Luxi County, accounting for 65.6% of the total population, among which, 12,081 people were from Miao, 7,394 people from Tujia and 137 people from other minorities. In addition, about 6 gender separated focus group discussions were conducted, followed with stakeholder interviews and key informant interviews among officials from relevant county agencies. In addition, about 6 gender separated focus group discussions were conducted, followed with stakeholder interviews and key informant interviews among officials from relevant county agencies. Only the data on ethnic minority were used to prepare this EMDP.

B. Ethnic Population in Four River Basins

In order to have a basic understanding on distribution and profile of ethnic minorities in the project areas, a great deal of ethnic minority data was collected for the four river basins and the project areas for the Project. For the four river basins, Table 3-1 presents the distribution of different ethnic minority groups. In comparison with the Hunan average, the share of minority population in the four river basins is much higher, indicating relatively high concentration of ethnic minorities. Of the total population in the four basins, there were 6.56 million ethnic minority people, accounting for 13.3%. Among them, Tujia, Miao, and Dong are the main ethnic groups, accounting for 11%, 8% and 4% respectively. Majority of minority people are concentrated in the two western river basins, with ethnic minorities accounting for 52% in Yuanjiang and 64% in Lishui. About 85% of the total minority population in Hunan Province is located within these two river basins. In terms of distribution of different minority groups, Tujia nationalities mainly reside in Xiangxi Prefecture, Zhangjiajie and Changde Municipalities. There were 2.53 million of Tujia nationalities in these three municipalities, accounting for 90.4% of the total Tujia people in Hunan Province. Miao nationalities are mainly living in Xiangxi Prefecture, Huaihua and Shaoyang Municipalities, with 1.95 million people and account for 95.4% of total Miao people in Hunan. Dong nationalities are mainly in Huaihua Municipality, with 834,720 persons or 94% of total Dong nationalities in Hunan. Yao nationalities are concentrated in Yongzhou City – the south end of Hunan, with 531,320 persons or 71.8% of the total Yao people in Hunan. Bai nationalities are mainly located in Zhangjiajie City with 109,076 persons or 81.4% of total Bai people in Hunan Province.2 Most of the minorities are concentrated in the mountainous regions in the north, west, and south of Hunan, bordering with neighboring provinces.

2 Almost of all Bai nationalities are located in Cili County - one of the project counties under the Project.

7

Tab 3-1：Ethnic Minority Population in the Four River Basins (2007) (1,000 persons)

Items Xiangjiang Zishui Yuanjiang Lishui Total Hunan Total Population 31,262.09 10,416.04 8,340.88 2,604.71 52,623.72 68,057.00 Han 30,356.50 10,294.04 3,982.39 950.04 45,582.97 59,723.10 Minority Total 905.59 122.00 4,358.49 1,654.67 7,040.75 8,333.90 % 2.90% 1.17% 52.25% 63.53% 13.38% 12.25% Tujia 39.76 2.24 1,256.90 1,489.14 2,788.05 3,537.00 Percent of Total 0.13% 0.02% 15.07% 57.17% 5.30% 5.20% Miao 28.47 17.29 1979.30 26.46 2,051.52 2,401.87 Percent of Total 0.09% 0.17% 23.73% 1.02% 3.90% 3.53% Dong 8.64 6.24 969.47 0.54 984.89 1027.39 Percent of Total 0.03% 0.06% 11.62% 0.02% 1.87% 1.51% Yao 720.26 44.98 102.56 0.36 868.16 951.16 Percent of Total 2.30% 0.43% 1.23% 0.01% 1.65% 1.40% Bai 2.23 0.13 26.07 134.16 162.59 175.84 Percent of Total 0.01% 0.00% 0.31% 5.15% 0.31% 0.26% Hui 10.66 45.76 17.24 2.60 76.26 126.58 Percent of Total 0.03% 0.44% 0.21% 0.10% 0.14% 0.19% Zhuang 29.2 1.0 1.9 0.4 32.5 33.93 Percent of Total 0.09% 0.01% 0.02% 0.02% 0.06% 0.05% Others 66.38 4.39 5.00 0.98 76.75 80.17 Percent of Total 0.21% 0.04% 0.06% 0.04% 0.15% 0.12% Source: Hunan Provincial Ethnic Commission.

C. Ethnic Minorities in Project Counties

The proposed 35 subprojects under the Project will involve 46 counties or districts, which are defined as Project Areas (PA). Table 3-2 presents the distribution of ethnic minorities in the project areas, which shows similar distribution patterns across the four river basins. Among 46 project counties, there was 3.15 million of ethnic minority population, accounting for 12.3% of the total population in the project counties. Among them, there were 1.54 million Tujia nationalities, accounting for 49% of the total minorities, 0.57 million of Yao nationalities, accounting for 18%, 0.46 million of Miao nationalities, accounting for 15%, 0.24 million of Dong nationalities, accounting for 8%, and 0.11 million of Bai nationalities, accounting for 3%. In terms of distribution of the ethnic minorities, 40% of them came from Lishui, 36% from Yuanjiang, 22% from Xiangjiang, and only 2% from Zishui.

Tab 3-2：Ethnic Minority Population in the Project Areas of the Four River Basins (2007) (1,000)

Items Xiangjiang Zishui Yuanjiang Lishui Total Hunan Total Population 14,260.51 6,417.93 3,234.54 1,849.22 25,762.19 68,057.00 Han 13,551.88 6,365.04 2,106.48 583.13 22,606.53 59,723.10 Total Minorities 708.63 52.79 1,128.06 1,266.09 3,155.66 8,333.90 Percent of Total 4.97% 0.82% 34.88% 68.47% 12.25% 12.25% Tujia 10.58 1.23 392.72 1,131.86 1,536.39 3,537.00

8 Percent of Total 0.07% 0.02% 12.14% 61.21% 5.96% 5.20% Yao 493.68 7.50 70.86 0.10 572.14 2,401.87 Percent of Total 3.46% 0.12% 2.19% 0.01% 2.22% 3.53% Miao 9.45 9.86 422.30 22.80 464.41 1,027.39 Percent of Total 0.07% 0.15% 13.06% 1.23% 1.80% 1.51% Dong 3.70 2.98 229.74 0.31 236.72 951.16 Percent of Total 0.03% 0.05% 7.10% 0.02% 0.92% 1.40% Bai 0.72 0.10 1.44 108.25 110.40 175.84 Percent of Total 0.01% 0.00% 0.04% 5.85% 0.43% 0.26% Hui 3.49 26.80 5.96 1.23 37.59 126.58 Percent of Total 0.02% 0.42% 0.18% 0.07% 0.15% 0.19% Zhuang 18.28 0.41 0.51 0.21 19.31 33.93 Percent of Total 0.13% 0.01% 0.02% 0.01% 0.07% 0.05% Others 168.84 4.01 4.52 1.54 178.80 80.17 Percent of Total 1.18% 0.06% 0.14% 0.08% 0.69% 0.12% Source: Hunan Provincial Ethnic Commission. Most of the minority people are located in three types of “minority counties”. The first type is official recognized ethnic minority autonomous counties. There are 6 such counties in the project areas, accounting for one third of them in Hunan. They are Jianghua, Jishou, Luxi, Fenghuang, Baojing and Xinhua Counties. The second type is non ethnic minority county but enjoying the same status and benefits of the minority counties. Luxi County is such county. The third type is non minority counties, but with more than 50% of the total population being ethnic minorities. Unlike the second type, they do not have minority county status and are not entitled to the benefits for minority counties. In the project areas, there are three such counties, accounting 43% in Hunan. They are Jiangyong, Cili and Shimen Counties. Of these 9 counties, 2 are from Xiangjiang, 3 from Lishui, and 4 from Yuanjiang. Its total population is 3.59 million, with 2.57 million being ethnic minorities, which accounts for 72%. The total minority population from these 9 counties accounts for 82% of the total minority population in the project areas (3.15million). Of the total population, urban population was 0.91 million, accounting for 25.2%, which is only 74% of the project area average. The rural population was 2.68 million, accounting for 74.8%, which was more than 11.5 points higher than the average of 46 project counties. In other words, these minority concentrated counties have much lower urbanization level than the provincial average. There are 3.69 million mu of farmland in these 9 counties, averaging 1.03 mu per person, which is similar as the provincial average. But the overall economic development is relatively low compared with the project area average or Hunan Province. For example, the per capita GDP in these 9 counties was only CNY 9,420 in 2007, which was only 65% of the provincial average and 74% of the PA. The rural per capita income was CNY 3,240, which is only 75% of the project area average and 70% of the provincial average. Along with income disparity, considerable difference also exists in education levels, and employment structure between Han dominated regions and minority dominated regions. For example, illiterate rate was 6.8% among the minority regions in Hunan, which was 25 points higher than that of Han dominated regions; and percent of the minorities with high school or above education was 14.1%, which was 2.24 points lower than that of Han nationalities. Since most these minority counties are located in the high mountains with poor access, considerable poverty exists in these counties. Of these 9 minority counties, 8 are national or provincial poverty counties. There are 990 poverty villages and 0.62 million rural poor, accounting for 22% of the total rural population in the 9 counties, of which the extremely poor account for 23%.

D. Ethnic Minorities in Luxi County

9 Luxi County is located in Xiangxi Autonomous Prefecture in the northwestern part of Hunnan Province. The total land area of the County is 1566 km2 and the average density is 188persons/km2. Most areas are mountains and rivers. Cultivated land only accounts for 7.93% of the total area (namely 12,415ha) and the per capita cultivated land is 0.77mu, lower than Hunan average. According to the statistics of 2007, there are 86,928 households and 294,344 persons in Luxi County, among which females account for 48.2% and males, 51.8%. Of the total population, 52,851 persons live in the county town, accounting for 18.0%. Luxi County is populated with 12 ethnic minorities, mostly Miao, Tujia, Dong, Yao and other minorities, of which 2 minorities (Tujia and Miao) are native, who have lived there for more than 800 years. In 2007, the total minority population of the county was 176,775, accounting for 58.9% of the Luxi County total population3, of which Miao population accounted for 41.14%, Tujia, 17.80% and other minorities, 0.15%. Luxi County is subordinate to Xiangxi Tujia and Miao nationality Autonomous Prefecture in jurisdiction. As a result of its high concentration of minorities, Luxi County has already been granted with most policies and rights entitled to ethnic minorities. Luxi County is one of the 8 national poverty counties in Hunan Province. Its overall economic development is still lagging behind. In 2007, per capita GDP in Luxi was only CNY 8,003, which was about 55.2% the provincial average (Table 3-5). The rural per capita income was CNY 2,550, which is about 65.3% of that in Hunan Province. Due to poor natural condition and harsh climate, considerable poverty exists in Luxi. Of the total rural 241,493 persons, 24,258 are rural poor (below CNY 900), accounting for 10.04%. Among them, 11,599 persons are extremely poor with per capita income below CNY 627. Majority of rural poor are concentrated in 90 key poverty villages, which account for one 67.2% of total villages in the county (134 villages). Among them, only 82% have road access, none of the villages has tap water, and 91% have post service, which are significantly lower than the provincial average. In addition, urban poverty is becoming an increasing issue in Luxi. If using local official urban poverty line of CNY120 per person per month, there are 7,853 persons in 1,963 households under the urban poverty line, accounting 14.9% of the total urban population in Luxi.

Table 3-3 Demographic Conditions of Luxi County (2007) Item Luxi Hunan Total Households 86928 20，859，100 Total Population (Person) 294344 68,057,000 Male (Person) 152551 35,338,700 Female (Person) 141793 32,718,300 Rural Population (Person) 241493 40,527,900 Urban Population (Person) 52851 27,529,100 Percent of the Urban 17.95 40.5 TotalPopulation Labor (Village) (％) 153500 25,780,600 Male Labor (Village) 81900 13,968,270 Female Labor (Village) 71600 11,812,330 Ethnic Minority Population 176775 8,330,000 (Person) Percent of the Ethnic 58.9 12.2 Minorities Source: Luxi and Hunan Provincial Statistical Yearbook (2008)

Table 3-4 Basic Economic Condition of Luxi County (2007)

4The minority figures collected during the survey are slightly lower than the figures provided by Hunan Minorities Affairs Committee.

10 Economic Indicators Luxi Hunan Percent Total GDP (CNY billion) 2.2 920 0.24 Per Capita GDP (CNY) 8003 14492 55.2 Per capita farmland (mu) (1 h a = 15 mu) 0.65 0.84 77.4 Per capita income in rural area (CNY) 2550 3904 65.3 Per capita income in urban area (CNY) 7862 12294 63.9 Source: Luxi and Hunan Provincial Statistical Yearbook (2007) E. Ethnic Minorities in Project Protected Areas (PPA)

In Luxi County, the proposed flood control subproject will directly protect part of urban area, which is defined as the project protected area (PPA). Based on 1 in 20 year return flood protection standard, the proposed flood works will form on3 protection zone along the left bank of Yuanjiang River. The total land area of these two protection zones is 2.0km2, involving 4 residential communities. All of them are under administration of Baisha Town of Luxi County. Baisha Town is one of 15 township units in Luxi County. It includes 5 residential communities and 3 village committees, representing both rural and urban part of the town. In 2007, there were 10,619 households and 29,911 persons in Baisha Town. Among them, 65.6% are ethnic minorities with 61.6% as Miao nationalities, 37.7% as Tujia nationalities and 0.7% as other nationalities. The basic economic condition is quite small between the rural part of and the urban part of Baisha Town. In rural part of the town, there are 3 villages with 6,521 rural persons. The per capita farmland is 0.37mu. In urban part of the town, there are 5 residential communities with 23,390 residents, of which:21,808 are urban population and 1,582 are vegetable growers. The PPA will cover part of the existing urban area of Baisha Town, including the population of 4 communities. There are 21,784 persons in PPA, accounting 72.8% of the total population in Baisha Town (Table 3-5).

Table 0-5: Basic Economic Conditions of the Luxi County Town Total Per Total Total Urban Total Luxi County Town Villages Rural capita Households Population Residents Farmland Residents Farmland

Rural Area 3 1525 6403 6403 0 2385 0.37

Urban Area 5 9094 22970 1582 21388 997 0.63

Total 8 10619 29373 7985 21388 3382 0.42

PPA 4 8714 21784 272 21512 64 0.24

Percent 50.0% 82.1% 74.2% 3.4% 100% 1.90% 57.1% Source: Luxi PMO and field survey.

Of the total population, 72.8% are from 4 communities, which include 21,512 urban residents. Of total population, there were 15,896 ethnic minorities, accounting for 72.9%. For the remaining 1.25% of rural population, the average farmland is only 0.24mu. Most of them are used to grow vegetables. The continuous urban expansion and farmland acquisition around the county town is the main cause for such change. Table 3-6 provides detailed information among 4 communities (villages) within PPA.

As the county town of Luxi County, Baisha Town has relatively developed secondary and tertiary activities. There are 709 various sizes of enterprises in Baisha Town, including 12 township enterprises,

11 130 village enterprises and 316 individual small businesses. The total gross output value was CNY 357 million. The gross output for agricultural sector was CNY 20 million, with per capita income for rural population being CNY1906. The total grain production was 1559 ton and 242kg per capita. The total orange production was 4202 ton or 656 kg per person.

12 Table 3-6: Demographic Profile of Residential Committees in PPA (1) (2007) Residential Percent of Total Total Male Female Rural Urban Committees Urban Household Population Population Population Population Population （Villages） Population Quwang 1052 3092 1701 1391 52 3040 98.3% Community Yuanjiang 2213 6535 3790 2745 82 6453 98.7% Community Chaoyang 2465 6539 3662 2877 20 6519 99.7% Community Xingsha 1891 5618 3596 2022 118 5500 97.9% Community Total 7621 21784 12749 9035 272 21512 98.8％ Note: For county institutions and enterprises, no household figure is available. Source: Luxi PMO. Table 3-6: Demographic Profile of Residential Committees in PPA (2) (2007) Residential Total Per Capita Total Male Female Minority Percent of Committees Farmland Farmland rural Labor Labor Population Minority (villages) (mu) (mu) Labor Quwang 52 1.0 13 8 5 2937 95.0％ Community Yuanjiang 0 0 35 18 17 2745 42.0％ Community Chaoyang 0 0 10 5 5 4708 72.0％ Community Xingsha Community 12 0.1 68 42 26 5506 98.0％ Total 64 0.24 126 73 53 15896 73.0％ Note: For county institutions and enterprises, no household figure is available. Source: Luxi PMO. In the project protected area, among total beneficiaries, 15,896 persons are ethnic minorities, accounting for 73.0%. The dominant minority groups are Tujia and Miao, which make up 99.9% of the total minority populations in the PPA. These minority persons are entitled with the same rights to education and employment as Han people and have not obvious difference in their economic conditions and income levels. Table 3-8 provides composition of ethnic background among communities in PPA. During the field assessments, a number of participatory assessment sessions, consultations, discussions and interviews were held with the minority population in the PA. These included staff of project PMO, Luxi County minority affairs bureau, poverty alleviation office, urban and rural residents, poorest of the poor, entrepreneurs, traders and sellers in the selected communities. Because of the frequent floods and serious impacts, during consultation, the different stakeholders all expressed their strong support toward the project. All of them marked the flood control project as the first priority followed with more income generation opportunities, better local road within the community, better access to credit, better education conditions and lowering education fee, and better health care service.

13 Table 3-7: Ethnic Profile in the Project Protected Areas for Luxi Subproject (2007) Residential Total Ethnic Groups Committees Han Ethnic Minority Population Population （Village） Tujia Miao Others Quwang 3092 155 2937 2830 107 0 Community Yuanjiang 6535 3790 2745 965 1780 0 Community Chaoyang 6539 1831 4708 934 3766 8 Community Xingsha 5618 112 5506 4680 823 3 Community

Total 21784 5888 15896 9409 6476 11

Percent 100％ 27.0％ 73.0％ 59.2％ 40.7％ 0.07％

Source: Luxi Subproject PMO and field survey.

F. Ethnic Groups and Their Distribution 1. Tujia The Tujia people live predominantly in (i) western and northwestern Hunan4; (ii) southwestern Hubei5; (iii) eastern Chongqing. In the project area the Tujia is the second largest minority group making up 4.2% of the total minority population in Luxi. This ethnic minority group was highly assimilated to Han in many aspects. Distinctions between the Tuija and Han are considered to be very slight although in more remote areas there is a greater maintenance of Tuija cultural and social identity than in most of the more readily accessible townships. The Tujia people in western Hunan have resided since the year 910 or so. The origin of Tujia people has been associated with one of the following three versions: (i) they are descendants of the ancient Ba people; (ii) they moved to western Hunan from Guizhou Province; and (iii) they moved from Jiangxi Province towards the end of the Tang Dynasty (618-907). Most of local legends, as discovered during the PPTA field surveys, support the third origin. The Tuija cannot be readily identified as an indigenous group in the context that they descended from population groups in the area before the imperial Chinese state was created. 2. Miao The Miao people ranks first in Luxi County, despite being the second largest ethnic minority groups in Xiangzi Tujia and Miao Autonomous Prefecture. With a population of more than 7 million in China, they are found mainly in (i) Guizhou, Yunnan, Hunan and Sichuan provinces, and (ii) Guangxi Zhuang Autonomous Region. A few also live on the Hainan Province and in southwest Hubei Province. In Baisha Town, the PA of Luxi County, there are 12081 Miao nationalities, accounting for 6.8% of the total minority population. Most of them are scattered in existing Tujia dominated rural villages and urban communities. Only in a few upland villages, they are concentrated by Miao people, which maintains the unique Miao culture reflected in most Xiangxi Prefecture. Western Hunan is host to one of the three main dialects6 in China: the other two dialects can be found in eastern Guizhou, Sichuan and Yunnan. However, many of the Miao who live in the valleys (preferred

4 Mainly in the Xiangxi Tujia and Miao Autonomous Prefecture and the Zhangjiajie Municipality 5 Mainly in the Ensi Tujia and Miao Autonomous Prefecture. 6 It is recognized in relation to the dialects of the Miao the reference is not simply to a dialect but a language with

14 place of settlement used to be at higher elevations in upland areas) have integrated with the Tuijia and speak fluent Chinese. Older people in the mountainous areas generally only speak Miao while most of the younger people are bilingual in both the Miao and Chinese languages although the degree of fluency in the Chinese language depends on, among other factors, length of time spent in school and time spent working in areas of Hunan or elsewhere in China where it is essential to use Chinese as the everyday language of communication. Miao who live in the villages and townships often speak Chinese with a broad accent that sometimes makes it difficult for non-Miao speaking Han Chinese and other ethnic minority groups to understand the Miao. Nevertheless, non-Miao that have ongoing interaction with the Miao do not appear to have much difficulty understanding present day Miao on the project area speaking Chinese. Specific cultural markers that set the Miao apart from other ethnic groups in China is there own unique dancing and singer. Miao women and men are very good dancers and singers and are very proud of their dance and music culture. Miao women like wearing silver and artisans skilled in making silver artifacts for women to wear are highly valued. Miao embroidery is also considered to reflect a high level of creativity and Miao women who are competent at embroidery are highly valued in their own community. The Miao are also very good at making an ornate range of pipes for smoking tobacco. Other cultural markers of the Miao in the project area include the smoking of pork, which is considered a delicacy not only among the Miao but other ethnic groups as well. Finally, of course there are the distinctive Miao houses with characteristic Miao designed roofs that date back many centuries. 3. Other Minorities Other ethnic minorities are present in PA. These minorities account for only 0.08% of the total minority population in Luxi County and they are mostly individual households who are settled in urban centers. None of these minorities are native to the project area.

G. Socioeconomic Characteristics of Minority Communities

For both the whole project protected area, since the ethnic minorities are the majority among different townships and villages, the general social and economic profiles of these communities will be the profiles for ethnic minorities. There are some specific characteristics relevant to Tujia and Miao in the project areas:  Although some of older Tujia and Miao people in remote villages still speak their own languages, most of them basically use their native languages in families. Additionally, most Tujia and Miao people can all speak Mandarin fluently except that they can understand their native languages. This is particularly true for young people and those in the urban area.  Among these ethnic minorities, there are wide spread practice of inter-marriages between the Tujia and Han, Miao and Han, Miao and Tujia, and so on. For example, among sample households, half of them are mixed families. These ethnic groups have been living in harmony for many years. They share similar believes in various kinds of nature gods. Therefore, the identities of ethnic background are quite weak among them. People could only identify their ethnic background through their surnames instead of distinctive language and living style.  According to the interview with officials from the county poverty alleviation office and ethnic affairs bureau, these ethnic groups have similar economic activities (agriculture and livestock) and demonstrate similar levels of income and economic development. In other words, the level of economic development in different communities is more distinct grammatical and phonological differences from the Chinese language. The same principle applies to the oter ethnic minority languages referred to in this EMDP.

15 attributed to different natural environment and infrastructural conditions (such as high elevation, poor access, limited irrigation, and poor soil condition) than the difference of ethnic background, since majority of population are ethnic minorities. The results of sample household survey in the project protected area also confirmed such fact. As one can tell, there is no significant difference in terms of income and social economic conditions between Han families and minority families in the project protected area. In fact, the income per capita and education levels among the minority households seem to be higher than that of the Hans. The Han families seem to have larger housing space, more farmland and higher non-farm incomes than that of minority families. On the other hand, the difference between the sample households in PPA and the county average is much greater, which is reflected in most aspects, such as education, income level, living condition, and non-farm income activities. Table 3-8 presents the socioeconomic characteristics of the sample households in the PPA.

Table 0-8: Socioeconomic Characteristics of Minorities and Han in PPA Han Category Minorities Rural Average Indicator Unit (15 sample (20 sample HHs)1 in Luxi County * HHs)1 General Average HH Size Persons 3.5 4.0 4.2 Per capita annual income CNY 4200 4800 2350 (median)Adult Illiteracy 0.7％ 2.1％ 9.3％ Primary school graduate 4.1％ 4.0％ 58.8％ % Education Middle school graduate 87.8％ 81.0％ 28.0％

High school graduate 70.3％ 61.0％ 4.9％ Above high school 5.8％ 4.8％ 4.5％ Cultivated land per person Mu 0.17 0.13 0.86 Vegetable/Grain Production per Agricultur Kg 0/380 0/380 303/139 Person e Housing spaces per person M2 20 28 25 Agricultural Inputs per person CNY 4300 4500 2160 Agriculture 1(5％) 1(6％) 56296(76.3％) Animal Husbandry 0 0 17413(23.6％) Income Non-Farm (by being employed HHs (%) Source for construction, factories, 14(95％) 19(94％) 74(0.1％) housekeeping, restaurants, etc.) Farm vehicle 30％ 29％ n.a. Motorcycles 45％ 43％ n.a. Assets Air Conditions % 7.8％ 6.2％ n.a. Color TV 100％ 98％ n.a. Mobile Phone 80％ 77％ n.a. 1 The samples were selected from common residents excluding government officials at random. Source: Field survey and Luxi County 2007 Statistical Yearbook. Poverty In Luxi County, there is considerate rural poverty with 35,042 persons, among which: there are 24,258 persons with per capita annual income below CNY 900, which accounts for 10.04% of the total

16 rural population. Among them, 11,599 persons or 4.8% are extremely poor with per capita income below CNY 627. Most these rural poor are distributed among 90 poverty villages in 15 townships. In Luxi County, where the PPA is located, there are 62 rural poor, accounting for 0.8% of the total rural population in Luxi County project area, and 5.6% of the total rural poor in Luxi County project area and 0.07% of the total rural poor in Luxi County. The rural population in PPA is relatively small (about 272 persons). The resulted rural poverty incidence in PPA is 22.8%. In terms of urban poverty, there are 851 urban poor in PPA, accounting for 92.4% the total urban poor in Luxi (921 persons). The resulted rural poverty incidence in PPA is 4.0 %. Relatively speaking, the urban poverty population occurring rate is 12.8％, which is lower than rural poverty population occurring rate (the urban poverty line is the income per month per capita less than CNY 200 and the income per capita is CNY 2400). Income In Luxi County, the average per capita annual income among rural population in 2007 was CNY 2,550. In PPA, which covers part of Baisha Town, the average per capita annual income in the 5 communities was CNY 7,862. Comparatively speaking, the average per capita annual income in the 3 villages of Baisha Town was CNY 3906. The better infrastructure and easy access to non-farm based income activities in 5 communities might explain such difference, which was confirmed from surveyed sample households in PPA. Among 35 sample households, per capita income was CNY 4,500, with 95% of income coming from non-farm sources. Among them, per capita income among Han families was CNY 4,200, which is slightly lower than that among minority families (CNY 4,800). Education In PPA, according to the sample survey, there is some difference between Han families and minority families in terms of their education background. For example, minority families have higher illiterate rate or 2.1% compared with 0.7% among Han families. Han families seem to have higher number of people with high school education (70.3%) than that of minority families (61.0%). However, if comparing the education conditions among the rural people in Luxi, such difference is not significant. In other word, both Han people and minority people from PPA have much better education conditions compared with that the county average. Agriculture Since majority of rural people are relying heavily on planting as their main source, the availability of irrigation is one important indicator of farmland productivity. In Luxi County, of 9537mu farmland, 83% are irrigated farmland. In Luxi County, of the total farmland, there are only 5400ha of farmland with irrigation, accounting for 43.5% of the total farmland (12,415ha). STIs/HIV/AIDS Transmission: Fortunately, no HIV/AIDS cases were found or reported in the project county. The construction of the flood control works will bring quite a few construction workers to the project area, although most unskilled laborers will come from nearby villages. These workers will unavoidably interact with local minority population. Therefore there would be increased risk of exposure to HIV/AIDS and STIs for minority population. Gender Aspects: China is committed to gender equality and women and men have enjoyed an equal status by law. Female participation in agricultural activity is high in China, as it is in many parts of the world. In the communities surveyed7, the basic household principle is one of men and women sharing the farming work. Women also undertake most of the additional childcare and household maintenance tasks as well as looking after the livestock. Sharing of financial resources was also common, especially where most income came from agriculture. However, one visible difference between men and women in the project affected communities is their education background. According to surveyed individuals, less than 8% of female labors have middle school or above education, and 30% of them are considered as illiterate or semi-illiterate. In contrast, for male labors, 80% of them have middle school or higher education, and none of them are illiterate. Because of this difference, there is considerable difference in terms of income generation skills. In general, the number of male labors with specific income generation skills is almost doubled that among female labors. Female labors are mainly limited in small trade in local area, while male labors tend to be concentrated in construction, transport, business, and manufactures. According to Luxi Women Federation, the number of women who went out as migrant labors is relatively small compared with other counties, which is mainly contributed by low education

7 2 group discussions were held with women – 1 in rural village and 1 in urban residential committees. Most participants are minorities.

17 background, traditional attitude, lack of skill and language barrier (this is mainly for middle aged women). Because of such constraint, in group discussions, most of female participants ranked skill training as high priority among various activities. H. On Going Minority Development Programs In autonomous region/prefecture/county in China, all activities are minority development oriented. In other words, central task of the autonomous governments is to promote minority people‟s development by an overall master plan and sector development plans of ethnic minorities. The sector development plans include: poverty reduction and development plan.  poverty reduction and development plan  agricultural and forestry development plan;  industrial development plan;  women‟s development plan;  children‟s development plan;  educational development plan;  transport development plan;  public health development plan; and  others. These plans are often linked with various programs, e.g., land conversion program is linked with forestry development plan and food for work program in linked with poverty development plan. Budgets for implementing these plans, as well as for other activities, are pre-determined and specified. In other words, there is hardly any flexible money available for additional activities imposed by such project like this ADB road development project8. In addition to the sector development programs, there are specific minority development programs in the project counties that are administrated by Luxi Ethnic Minority Affairs Bureau. The programs are formulated based on the needs of each county through bottom-up and top-down approaches. Minority development programs include the provisions of providing social infrastructures (primary/secondary school, health clinic, housing upgrading, and recreation facilities), economic infrastructures improvement (rural road, water supply and electricity connection), and capacity building (training on farming, and training on income-generating activities with microfinance). The minority development programs often join hands with poverty reduction programs. As a formal minority county within the Xiangxi Tujia and Miao Autonomous Prefecture, Luxi obtains specific minority development oriented support for all sectors from higher-level governments. In addition, the minority affairs sector itself, had also independently implemented a number of development programs to be used for supporting minority villages in their poverty alleviation efforts, such as village infrastructure, power, clear water use, education and health care; and CNY8.80 million from Provincial Ethnic Affairs Commission each year to be used to provide support for education and health care for minority people. (Table 3-9).

8 Specifying budget uses is also an anti-corruption measure

18 Table 3-9: Minority Development Programs in Luxi County (2001-2004)

Programs Sponsor Agencies Annual Investment (CNY Implementation 104) Agencies Rural infrastructure – electricity, road, and water Provincial Grant 280 LMAB Minority Children Education Support Provincial Grant 120 LMAB Minority Heath Care Assistance Provincial Grant 80 LMAB Minority Education Assistance Provincial Grant 160 LMAB Total 640 Source: Luxi Minority Affairs Bureau (LMAB).

19 IV. PROJECT IMPACTS ON MINORITIES

A. Past Flood Impact Luxi County is situated in the west part of Hunan Province, and Luxi county town is located at the left bank of Yuanshui River. Due to uneven precipitation distribution in the year, it is concentrated during April ~ August, and the rainstorm is of larger strength, accordingly, torrent easily happens, and the flood of the river quickly rises. Based on the record, Luxi county town has been suffered by flood often, Luxi County is of frequent flood disasters, and local flood trouble occurs every year. Since establishment of Pushi hydrological station in 1957, flood and waterlogging disasters have occurred every 5 years, the county is characterized by swift flood and serious loss. From the county waterworks at the upper reaches of the left bank of Yuanjiang River to the county harbor affairs bureau at the lower reaches, the county key enterprise, pumping station of the county waterworks, the county meat and food process plant, and the county edible oil plant are established along the river, which all belongs to the flood inundation range. Most part of the ground elevation of the residence along the left bank of Yuanjiang River is below the flood level, and it is often inundated by flood. Most part of the urban area will be inundated by 1 in 20 years flood, and owing to the largest flood in 1996, urban houses of 0.145 million m2 and the cultivated land 520 mu were inundated, 9200 persons were attacked, and the direct economic loss of 120 million yuan was caused. The flood disasters have seriously threatened lives and properties of the people, restricted the development of the economy, culture, and urban construction of Luxi County as well. The statistics about the times of flood disasters, the depth of floods are simple, but the damage caused by floods is practical. Table 4-1 presents the understanding on flood disasters by different groups from the 2 communities.

Table 4-1: Description of Flood Impacts by Different Groups in Project Area Groups Actual Flood Impacts to the Communities  Residents living on low lands have to remove because their houses have been destroyed by floods.  We‟re looking forward to build flood control dikes. Urban residents  The houses and roads are destroyed.  Water pollution exists after floods.  We cannot wash vegetable as usual.  After flood, grain production reduced and catastrophic flood may cause null harvest.  Flood will wash away cultivated land and fertile soil. Vegetable growers  After flood, living is inconvenient for a period of time.  Roads are also damaged, must be repaired by villagers several times.  Small shops and business were affected.

 In summer, flood prevention and flood control are the main mission to cadres, other Cadres of residential matters all need to give away to flood prevention. committees  In case of heavy rainfall, men must be sent to watch the river dike, men must be available in the telephone, close attention must be paid to the weather forecast and to the notification of upstream reservoir flood discharge. Small business persons  Mainly suffering from cargo loss.  Business in flood period will be affected, goods inventory and sale are all  affected.  Each kind of public service is chaotic.  City drainage system is also blocked.  Facilities in inns will be damaged. Factories  Factories with a low topography will be influenced and the impact on factories with a high topography is small.  On normal conditions, the impact on factories is insignificant, while the

20 transportation of raw materials and products will be influenced after floods.  It‟s not easy to attract foreign investors.  Work halts during the flood season; clean and maintain after floods.  Clearance and disinfection of sludge after floods. Sources: Field visit and small group discussions.

Among the poor people in PPA, frequent flood is one important factor for causing such poverty. According to the estimate made by Luxi Poverty Alleviation and Development Office, about 15 percent of rural poor in Luxi County Town were caused by 1996 flood. If there were no flood in those communities, the poverty incidence would be much lower. Such impact by the flood is reflected in the following aspects:

 Frequent flood would result in loss of living and production assets. The replacement of such assets will increase the family financial burden and keep them from improving their current poverty status.

 The flood would also cause reduction of output and loss of revenues for affected enterprises due to interruption of their normal production for emergency activities, and damage of their production equipments, which would lead to lower income among affected employees.

 The farmland within the protected areas, particularly relatively high yield vegetable land is frequently flooded, which will damage the crops, wash away top soil, and damage related facilities, which will result in lower income among local farmers and keep them in poverty conditions.

 For the vulnerable people living in the dilapidated houses, the flood will pose continuous life threat and increase their anxiety, which need to give more attention. B. Project Benefits for Different Beneficiaries

The proposed Luxi Flood Control Subproject will benefit all people in PPA, which include county town and rural, male and female residents, industrial managers, staff of the enterprises and institutions, local government officials and small shop owners. Majority of project beneficiaries are ethnic minorities. The Project will produce social benefits for them in the flood-prone area by reducing the risks to personal safety, livelihood, and assets. For rural and urban residents, reducing of flood damages to their crop, houses and assets mean more savings and higher income in future. Community interviews strongly suggested that the residents forgo investment in higher income activities such as greenhouse, livestock production and house improvements for fear of the potential loss during floods. Frequent house reconstruction after flood drains their capacity to accumulate financial resources. Removal of the flood danger from the protected areas will create a safer environment for both urban and rural residents so that they could sleep better during the wet season, and worry less about the safety of their family members and security of their limited physical assets. The participation in the Project construction by unskilled labours will directly increase their cash income, which could help them build their savings and improve the poverty conditions. The poorer residents will benefit through increased security provided by the Project which will mitigate the floods and assist the local government financial capacity. Confidence that public infrastructure investment will be more secure will support more investment in these locations. The improved business environment will encourage urban development, during which both local communities and urban residents will significantly benefit.

For business and enterprises, the improved flood protection mean the reduction of potential damages and interruptions caused by floods, which will result in higher profits for the companies, more wages for the employees and more tax revenues for local governments. For many state owned enterprises with

21 large land areas, better protection will have more chance to attract outside investment, so jobs can become more secure and the business can expand, thus leading to more employment. In addition to economic benefit, group discussion among stakeholders also identified a range of non-economic benefits by the Project, which include: (1) a better urban environment along the river front with improved drainage and removed garbage; (2) improved transport and access for local residents; (3) created a safer environment for local residents, particularly for children and elderly; and (4) enhance non-farm employment capacity through participating in Project construction, and job skill trainings for affected communities. Even for those people outside the PPA, reduction of flood impacts in the county town mean less interruption of market activities, and less interruption of government programs and services, which are critical for most rural poor. The project itself is an ethnic minority people‟s development project because it will direct provide flood protection to the political, economic and commercial center of Luxi County. According to the social and poverty assessment, there are 21,784 persons in Luxi project protected area. Among them, 73.0% are ethnic minorities, including 6,476 of them as Miao, 9,409 of them as Tujia and 11 of them as other nationalities. During the survey, small group discussions were held among men and women in the selected communities. Based on their own experience, different group individuals identified various benefits to be brought to the minorities, which is presented in Table 4-2.

Table 4-2: Positive Impacts of the Flood Control Project Groups Positive impacts to be brought by Luxi flood control subproject

 Protect properties such as houses, furniture and electric appliances.  Prolonged house and furniture life.

 Promote city infrastructure construction. Urban women  Convenient for washing cloths, vegetable, leisure; produce securely without worrying that children fall into water when play with water by the river.  Advantageous to wealth accumulation and development without worry, do good housing construction.  Advantageous to trade and investment invitation, and economic development.

 Can work outside Urban residents (male)  Can live along riverside free from anxiety.  Reduced flood-fighting duty.  Increase the family income by operating yachts.  To guarantee the life and property safety  Reduce flood prevention and flood-fighting works volume. Cadres of residential  Improve the environmental sanitation condition along the river. committees  Save expenditure for epidemic prevention.  Promote trade and investment invitation.  Improve water sewage system.  Prevent soil erosion; prevent life and houses from floods.  Protect vegetable plot and vegetables. Male vegetable growers  Improve sanitation.  Promote traffic improvement.

Female vegetable  Ensure life safety; and children‟s study shall not be affected. growers  Protect properties such as houses, furniture, and electric appliances.  Reduced skin disease.

22  Improve environment and transportation.  More convenient to wash in riverside.  Reduce cargo loss.  Business may not break off. Small business persons  Improve environmental sanitation.  Attract investment, promote economic development.  Some people may contract projects and sell raw materials.

 Attract outside investment.  Land value is increased. Factories  Create development opportunity.  Improve water sewage system. Sources: Field visit and small group discussions. Based on discussions with various stakeholders, it seems that the following short term and long term economic impacts could be expected from the Project: Short term economic and development impact:  Employment during construction. Some 122,300 person-months will be provided; if 600 unskilled laborers are employed, half of the opportunities will be given to the poor population and their income will be increased to CNY 3.10 million. And at least 80% of labors and CNY 2.48 million of wages will come from minority people.  Commercial activities during the construction. These will include groceries, provision of food and accommodation services.  Provision of construction materials. Contractors will only locally purchase the bulky and yet cheaper materials of stone and earth for civil works. This could enable some minority people, where the expressway crosses, to engage in excavation and transportation of stone sand earth.

Mid-term and long-term (after construction period) potential indirect economic impacts include:  Increased agricultural production and productivity through reducing flood damages and increasing farming input, such as building greenhouse vegetable, and making crop structure adjustment, as well as income skill training under both minority development and resettlement programs  Increased non-farm economic activities by providing safe business environment, non-farm skill training, and making capital available through land compensation and employment opportunities during construction  Flood work-related employment. The maintenance of completed dikes and facilities will employ some people to do regular maintenance, landscaping, cleaning, etc.  Increased employment through increasing real estate development and commercial activities along the river front. These potential impacts are expected to benefit men and women, urban and rural, Han and minorities in PPA. Social and Poverty Analysis showed that women were conscious of the safety of family members. Also, women in the immediate impact area (area along the construction site) will receive more benefits from providing catering services and other social services to the large number of workers during

23 construction of dikes. The long-term trends for women are very favorable, such as improved female education, enhanced cultivation techniques, greater emphasis on livestock raising in poor areas, and increasing urban migration.

C. Potential Negative Impacts of Resettlement

During the small group discussions held in the selected communities, different groups of individuals also identified a range of potential negative impacts (see Table 4-3) to be brought by the proposed subproject based on their own interests. Among them, the land acquisition, demolition of houses and relocation of population were considered the major negative impacts by the project. According to the detailed impact survey, the construction of the project will acquire a total of 19.37 ha land areas and farmland accounts for 26.8%, which will affect 1 town, 1 villag and 2 villager groups. Apart from the land acquisition, the area of houses to be demolished is 2345.78m2, including 1935.27m2 of residential structures and 410.51m2 of non-residential structures. The demolition will affect 31 households and 155 persons. Along with land acquisition, a total of 9194 square meters of buildings would be demolished, including 8055 m2 of urban residential structures and 1139 m2 of non-residential structures. The demolition will cause relocation of 64 households and 338 individuals, and affect 5 enterprises and institutions. Although the amount of land acquisition and demolition is not significant, for affected individuals and communities, the impact could be quite significant. For example, the land acquisition will result each villager in a reduction of 0.015ha farmland. On the other hand, most affected villagers are no longer relying on agriculture as their main source of income. According to the sample household survey, only 6% of income came from planting. Therefore, through farmland readjustment, investing in animal husbandry and greenhouse vegetable, as well as other income generation activities, each affected person will be able to restore their income to their previous levels. Following the ADB requirements, draft resettlement plan has been prepared by PMO with assistance from the design institute. The proposed compensation standards are in line with the PRC Land Administration Law (1998) and the ADB‟s Policy on Involuntary Resettlement, Luxi County PMO guarantees that persons losing the land, other properties, or income resources will be helped to completely recover their income and living level. Particularly the Hunan Provincial Implementation Decree adopted in 2000 stipulates the regulations for land compensation, resettlement subsidies, young crop compensation, house compensation and other measures to carry out resettlement. In terms of rehabilitation for house demolition, for affected urban households, it is preliminarily determined that the concentrated resettlement of property right exchange in different place will be carried out for their relocation and new house construction. In addition, it is allowed that they could take the recycling materials from their houses to be demolished. For land loss farmers, the economic rehabilitation will be carried out with a combination of land readjustment, developing greenhouse vegetable and animal husbandry. Based on extensive consultation, detailed economic rehabilitation plans have been developed for all affected villages, which are included in the Resettlement Plan. The total cost of resettlement is estimated at CNY8.2820 million. The HPWR and Luxi PMO will ensure that the resettlement entitlements are provided to the people affected prior to the ground leveling and demolition commencement. Land compensation and resettlement subsidy will be paid to the affected village collectives. Housing compensation and compensation for young crops and other assets will be provided directly to people losing those assets. Compensation for infrastructure such as electrical and communication fixtures will be paid to the concerned government departments for restoration. However, since the draft RP has not yet been disclosed to the local communities and affected people, most people interviewed did not have clear idea about the potential land acquisition and resettlement impact to be brought by the Project. They express some concerns with regard to compensation policies and potential negative impacts. It seems that during next stage of resettlement planning more meaningful participation should be organized with affected communities and individuals, and more

24 disclosure should be carried out in order to improve basic understanding of the resettlement preparation for the Project and address concerns raised by the project affected people. The project implementation will produce a certain impact on socio-economic factor: 1) The affected area is located at the junction of the rural and urban areas of Luxi County with good infrastructure conditions, where the local farmers have a lot of opportunities in non-farm employment, such as daily labor and small business. Most those surplus labor forces have moved into the second and tertiary industry or individual business, gradually moving out of land. According to the investigation, the project land acquisition of 2006 affected 4001 labors of 1 township, including 2230 agricultural labors, accounting for 55.7%. Viewing from the revenue structure, the total revenues of the affected township was 3.4855 million yuan in 2006, including the agricultural revenues of 0.6608 million yuan only, accounting for 19.1%. The investigation shows that in spite of the land loss, the local farmers will suffer the decrease of agricultural incomes; however, due to the small proportion for plantation in the total income, they will have little impacts on their production and living. 2) For farmers with land plantation as their main livelihood resources, the land loss will result in the loss of complete or partial means of production, however, as the project is linearly distributed along the Xiangshui River, the land acquisition of the project will result in not big influence on the agricultural production of resettlers. On average, each affected village will only lose 20.92% land. In 2 affected villages and groups, on average, each group will lose 20.92% of the cultivated land. While, with regard to the villagers (89 households of 362 persons) whose are directly impacted by the project land acquisition, each villager will lose 21.5% of the cultivated land. According to the on-spot investigation, it is known that, in the affected 2 villager‟s groups, all villagers‟ groups have the cultivated land occupied less than 25%, before occupation of the cultivated land, the per capita cultivated land is 0.32mu only, while it has been decreased by 0.07mu after land occupation. Most affected farmers would have limited impacts due to land acquisition. For such impact, it is planned that local farmland adjustment will be adopted as basic rehabilitation strategy, which will not impact the traditional production mode and livelihood of the affected persons, and can restore, or even develop their living standard within short period of time; the cash compensation can be adopted, which will be paid directly to the affected farmers to be used to undertake other agricultural activities to create revenues (such as adjusting plantation structure and developing greenhouse vegetables) or other non-agricultural activities to create revenues (such as development of livestock breeding). These activities will increase their incomes and mitigate acquisition impacts so that their income and livelihood could be restored and improved after land acquisition. 3) For relocated households, the process of moving and decorating new houses will consume certain manpower and material resources for the affected households, which need to be considered by the project sponsors. The PMO will, according to the associated policies, make compensation to their loss of moving and traffic costs, complete infrastructure costs for the new housing plot and necessary transfer allowance. In addition, the PMO and the local village committees will provide necessary assistance. Therefore, the impacts from the project will be reduced to the minimum. The project construction will bring a lot of influences on the residents and businesses within the project area, but the impact is little and after completion of the project, it will create favorable conditions for further development of Luxi County, and facilitate the sustainable quick increase in economy. Apart from land acquisition and resettlement, the project is not expected to have adverse impacts on minorities as a separate group. Additional measures are outlined in the next section to minimize any adverse affects resulting from development and economic growth and to enhance project benefits to minority people.

Table 4-3 Basic Conditions of Affected Villages (Communities) in Luxi County Urban Flood Control Project

Town Village Population（Person） Cultivated Land Area（mu） Cultivate Income Ethnic Group Vulnerable （Sub-dis (Com d Land Per Capita Group

25 trict） munity Agricu Non-agri Per （yuan/ye Numb Numbe ） Dry ） Total ltural cultural Total Paddy Farmla Vegetabl Capita ar er of Percent r of Percent Popul Populati Field e Plot （mu） Perso age (%) Person age (%) ation on nd ns s 1 1 3127 1152 1975 371.36 130.03 14.81 226.52 0.32 2000 1120 35.82 30 0.96 Baisha Town 1 3127 1152 1975 371.36 130.03 14.81 226.52 0.32 2000 1120 35.82 30 0.96 Quwa ng 3127 1152 1975 371.36 130.03 14.81 226.52 0.32 2000 1120 35.82 30 0.96 Village

D. Expectations and Concerns In March, 2008, the resettlement survey team, under the cooperation of the governments at all levels in the project area, conducted a detailed survey on the basic social economic conditions of the affected households and the relocatees‟ willingness.

1). Investigation on the Basic Conditions of Affected Households For the investigation on the basic conditions of affected households, a sampling survey in site was made to the affected households. After filling the questions of survey form, the affected households made signature for confirmation. Twelve households within the affected area of the project were selected as the sample, accounting for 38.7% of the total affected households. The samples cover all the areas (excluding the affected scope by temporary land use) affected by the project and all the samples are representative and typical, and can be used for basis for the project impact analysis. For the detailed sample survey distribution of removed households, see Table 4-4.

Samples Distribution of the Resettled Households Affected by the Project Table 3.4-1

Affected Villages Total Affected Township（Sub-district） (ResidentialCommittees) Households Smaple Household Sampling Percentage （Household） （%） （No.） （Household）

1 1 31 12 38.7 Baisha Town 1 31 12 38.7 Quwang Village 31 12 38.7

2). Investigation on relocatees‟ willingness and attitudes Investigation on relocatees‟ willingness adopts the mode of sample survey with a sampling ratio of 48.4%. The resettlement planning team prepared a survey form. The different levels of governments organize people to distribute survey forms in the project areas and ask affected people to fill up. In the affected area of the project, there are 15 survey forms issued to the relocatees, and 12 effective forms returned with an effective ratio of 80%. The sample survey and analysis shows that: ① Household Size of the affected households: 4.92 persons / family in average in the affected area of the project, including 3.17 persons for labor forces with age 17~60, 1.25 person of younger than 17 years old and 0.5 person of older than 60 years old. ② Gender Percentage: The male/female ratio in the project area is 1:1.18. ③ Age makeup: The labour forces at age of 17~60 possess 64.41% of the total population, 25.42% for younger than 17 years old and 10.17% for older than 60 years old. ④ Ethnic Background: Relocatees within the project protected area are all Tujia nationality. ⑤ Educational level: In the affected area of the project, every 100 persons, there are 2 persons with educational level of higher than senior middle school, 19 persons with educational level of senior middle school, 34 persons with educational level of junior middle school, 36 persons with primary school and 9 illiteracies or half-illiteracies. ⑥ Housing area per capita: The housing area for every household is 75.7m2 and that per capita is

26 15.14m2. The structures of houses are mainly brick wood structure. ⑦ The land contracted by the collective: In countryside, each household contracts 0.42mu of cultivated land, averaging 0.09 mu per capita; The grain yield of each household is 1752.5kg in average 356.43kg per person. The livestock per household is 3.5 and the poultry is 21.6. ⑧Family property: For every 100 households, there are 100 TVs (all Colour TVs), 233 electric fans, 67 refrigerators, 83 washing machines, 50 bicycles, 67 motorcycles, as well as 433 pieces of big furniture such as sofas, big bureaus and chest of drawers. ⑨ Economic incomes and expenditure: Each household has an annual total income of CNY27464, averaging CNY5585 per capita; Each household has an annual total expenditures of CNY 7568, the annual expenditure per capita is CNY1539; Each household has an annual net income of CNY 9008, averaging CNY1831 per capita. For the total basic conditions of the affected households by the project, see Table 4-5.

Summary for the Basic Conditions of Each Affected Household of Luxi County Urban Flood Control Project Table 4-5 Total of Samples Baisha Town

Items Unit Indices per Indices per Total Total household household I Affected household size 1.Sample household Household 12 12 2.Total Population of Household Person 59 4.92 59 4.92 Of which：female Person 32 2.67 32 2.67 3.Labor forces of 17~60 years old Person 38 3.17 38 3.17 4.Population younger than 17 Person 15 1.25 15 1.25 5.Population older than 60 Person 6 0.5 6 0.5 II Educational level 59 59 1.Sample number Household 12 12 2.More than senior high school Person 1 0.08 1 0.08 3.Senior high school Person 11 0.92 11 0.92 4.Junior high school Person 20 1.67 20 1.67 5.Primary school Person 21 1.75 21 1.75 6.Non-educated Person 6 0.5 6 0.5 IV. Nationalities 59 59 1.Sample household Household 12 12 2. Tujia nationality Person 59 4.92 59 4.92 V. Housing area 1.Sample number Household 12 12 2.Housing area per household m2 908.4 75.7 908.4 75.7 3.Housing area per capita m2 908.4 15.14 908.4 15.14 VI. Agricultural production 1.Sample household Household 12 12 2. Sample population Person 59 59 3.Contracted plantation area per mu 5.04 0.42 5.04 0.42

27 Summary for the Basic Conditions of Each Affected Household of Luxi County Urban Flood Control Project Table 4-5 Total of Samples Baisha Town Items Unit Total Indices per Total Indices per household household household

4.Plantation area per capita mu/person 5.04 0.09 5.04 0.09 5.Grain yield kg 21029.37 1752.45 21029.4 1752.5 6.Grain occupation per capita kg/person 21029.37 356.43 21029.4 356.43 7.Livestock Piece 42 3.5 42 3.5 8.Poultry Piece 259 21.58 259 21.6 VII. Household property 1.Sample household Household 12 12 2.TV Set 12 1 12 1 Including: color TV Set 12 1 12 1 3.Electric Fan Set 28 2.33 28 2.33 4.Refrigerator Set 8 0.67 8 0.67 5.Washing machine Set 10 0.83 10 0.83 6.Bicycle Piece 6 0.5 6 0.5 7.Motorcycle Piece 8 0.67 8 0.67 8.Large furniture Piece 52 4.33 52 4.33 VIII. Annual total revenues and expenditures 1.Sample household Household 12 12 2.Annual total incomes yuan 329568 27464 329568 27464 2.1 Agricultural income yuan 48708 4059 48708 4059 2.2 Stockbreeding income yuan 8244 687 8244 687 2.3 Non-agricultural income yuan 272616 22718 272616 22718 3.Annual consumption expenditure yuan 90816 7568 90816 7568 3.1 Living expenditure yuan 36168 3014 36168 3014 3.2 Production expenditure yuan 221472 18456 221472 18456 3.3 Other expenditures yuan 31488 2624 31488 2624 4.Annual household income yuan 21972 1831 21972 1831 The groups which are investigated hope that the flood control project could be conducted as soon as possible, the river dike could be built wider, and try to consider the project implementation from the comprehensive and multifunctional aspects. Their main opinions are as follows:  Building a wider and higher embankment open to traffic;  Commence the work as soon as possible;  For potential resettlement impacts, providing information early and adequate compensation as well as employment opportunities;

28  Providing employment opportunities during construction;  Providing credit for small business.

 Do not occupy too many farmlands;

 Improve the drainage system during the dike construction; During survey, the interviewed people made selection and sequence arrangement to rural and urban development requirements. The first five projects which are needed urgently are selected by them. Within the investigated groups, there are six groups to list this project as the most precedent project, and the others, in sequence, includes: providing more income generating opportunities, building roads for local people, providing credit, improving educational condition, lowering down the tuition, better medical care service etc.. For the investigation result, please see Table 4-6. Table 0-6: Priority needs Perceived by from the Community Residential Gender 1 2 3 4 5 Committee/Village Better Other flood control More non-farm Better sanitary Male Proposed project measures jobs facilities sewage treatment Quwang Community Better education Providing More income Female Proposed project generating More credit condition and non-farm lowering down technical opportunities the tuition training Better education Better Better public Male Proposed project Better road conditions condition and safety medical lowering down care service Chaoyang Community the tuition More non-farm job Better public Better Female Proposed project More credit medical opportunities safety care service

E. Poverty Reduction Measurement

The major poverty problem of Luxi County is rural poverty. According to official account, there are 35,042 persons under the poverty line in rural areas. Among them, 11,599 persons are extremely poor with per capita income below CNY 627, accounting for 33.1 % of the total population in Luxi County. Most of the poverty people are located mountainous regions with harsh natural conditions, and poor accessibility. Some of the rural poverty is caused by frequent flooding since part of Luxi is located in one of heavy rainstorm areas in Hunan Province. However, since the project protected area covers mainly urban area, the majority of poverty persons in PPA are urban poor living below the minimum living safety line. There are only 62 rural poor in PPA, accounting for 0.2% of total rural poor persons in Luxi County. The main cause of rural poor in PPA is limited of farmland due to urban expansion, frequent flood and lack of non-farm employment opportunities. Most these rural poor in PPA are vulnerable people who lack of labor or disabled. For the Luxi County, since rural poverty is relatively high, there is on-going poverty alleviation effort funded by both provincial governments. According to officials from Luxi Poverty Alleviation Office, there were about CNY15 million poverty alleviation funds allocated to Luxi County each year for poverty reduction efforts, with CNY11.80 million as poverty reduction grant, CNY 3.20 million as work for food program. About 70 % of these funds were used for improving basic infrastructure, promoting economic development, and conducting technical training among key poverty villages. The funded activities include village roads, drinking water, school building repairs, irrigation facilities, as well as introduction of various cash crops and technical trainings on planting, animal husbandry, and non-farm skills. Because of such efforts, the poverty population has been reduced steadily in the past 22 years. The extremely poor population – people who lack basic food and clothing was reduced by 125,876 persons between 1986 and 2007. The share of extreme poor

29 people was reduced from 85.1% in 1986 to only 2.9% in 2007. Table 4-7 indicates such sharp decline during this period. Table 0-7: Change of Poverty Incidents in Luxi between 1986 and 2007 Year Extreme Poor Percent of Total Rural Poverty Percent of Total Rural Population Rural Population 1986 132871 85.1% n.a. n.a. 1993 119736 54.4% n.a. n.a. 2003 19582 8.15% 65258 27.2% 2004 12987 5.4% 48595 20.3% 2005 10825 4.5% 42561 17.8% 2006 8943 3.7% 38152 15.9% 2007 6995 2.9% 35000 14.5% For urban poor in Luxi, including those urban poor in project protected area (PPA), the main approach of poverty reduction is to deliver Minimum Living Allowance (MLA) so that their average monthly income could reach urban minimum living safety line. The process of identifying those who are under the poverty line is increasing transparent. It begins with application by the poor people, reviewed by local communities and disclosed in public three times for comment before finally adopted by local civil affairs bureau. According to estimate by Luxi Civil Affairs Bureau, for 2006, there are 7,853 persons in Luxi County are provided with living allowance subsidy, with a total of Y6.39 million, averaging Y814 per person per year. Among the urban poor, losing regular jobs from state owned enterprises is one main factor. According to the statistics from the Luxi Civil Affairs Bureau, 75% of the people, who live by the Minimum Living Allowance (MLA), come from the state-owned and collective-owned enterprises. In order to address such problem, measures like providing re-employment trainings and introducing jobs by local labor and social protection bureau. Meanwhile, local governments also take positive employment policies and provide various public service positions, such as road cleaning, security guards, traffic assistants, and so on. For those positions, more attentions are given to the aged unemployed workers with less education or skills. Other measures such as reducing education fee for their school age children are also adopted. The strength of poverty alleviation effort in China lies in its effective administrative structure and dedicated staff. It was reflected during the process of flood protection and disaster relief activities. When flood was coming, staffs from town and residential committee (village) were responsible to help those vulnerable peoples move to safer places, collect and distribute relief goods, and assist them throughout rehabilitation efforts. The construction of the proposed project will (1) effectively enhance the capacity of flood control by the local communities, and reduce the loss from the flood, so to promote the production and income of the poor; (2) provide employment opportunity for those with no specific skills, especially the poor during the construction; and (3) promote the development of the urban areas, increase opportunity of employment so to reduce the poverty population.

30 V. ACTION PLAN

A. Specific Measures/Activities

Tables 5-1, 5-2, and 5-3 present the proposed measures, targets, budget and implementation timing. The proposed measures consist of the following three categories:

 Measures to avoid or mitigate adverse impacts

 Measures to enhance positive impacts

 Measures to ensure project benefits accrue to affected minority populations in a preferential or in an equitable manner

The scale and scope of the proposed measures are subject to modification from time to time depending on the finalization of project design and various other factors.

1. Mitigation Measures

Construction-related Disturbances. The proposed flood control works and their related facilities will directly affect 12 minority villages in Luxi CountyTown. Some disturbances might occur during project implementation. The total minority population affected by construction noises and other hazards from these residential committees or villages will be about 12600. The environmental impact assessment considers and addresses some, if not all of these potential health hazards identified. For instance, nighttime construction is prohibited thereby mitigating the issue of excessive noise for people living close to the expressway construction sites. The construction of crossings will address the concerns of road safety. The restoration of damaged irrigation and drainage systems will preserve surface water sources of local people from pollution caused by construction. HIV/AIDS and STIs Awareness and Prevention. Although Luxi County is not a high risk area for HIV/AIDS, in order to ensure that Luxi will continue free of HIV/AIDS, county CDCs (Centre for Disease Control), in accordance with the PRC Law on Prevention and Treatment of Epidemic Disease, will take measures to prevent the spread of HIV/AIDS and other STIs. The project PMO and the contractors will support CDCs to take prevention measures for workers and local communities during construction and to transport operators and truck drivers during operation of project facilities such as establishment of health clinic at construction camps, HIV/AIDS and STIs prevention posters, HIV/AIDS and STIs education programs, and implementation of the international anti-AIDS programs. Gender Equality. In order to ensure the fair distribution of the project benefit to the women, women‟s participation in terms of decision making will be secured in accordance with government laws and regulations during the implementation of Ethnic Minority Action Plan. The Women‟s Federation, which has a mandate to advocate women and children rights, and disseminate information of livelihoods improvement through newsletter and regular group meeting, will extend their activities in the project affected area as a part of their regular activities. Resettlement. Local governments will support the development of social infrastructure and local markets, and have incorporated those into local development plans. For new house construction, local customs, agricultural requirements and future development needs will be taken into consideration. House construction will be carried out according to the wishes of households so that the traditional housing styles will be preserved. A special fund will be used to provide necessary help for the vulnerable people when necessary. Vulnerable people include the elderly, disabled, household headed by women, extremely poor households, and monitory people. In addition, the people seriously affected by the land acquisition and resettlement of the Project will be offered training in agricultural techniques and non-agricultural skills according to their different situations in addition to land compensation and

31 livelihood restoration provision. Those affected women (especially minority women) will be given priority in these training so that they can enhance skills and obtain better benefit opportunities by participating in non-agricultural activities. The resettlement organizations at all levels include staffs that are members of minority nationalities. Ethnic minorities and their representatives will be participating in resettlement, and such participation will run through the whole process of resettlement. The basic scheme is determined as follows: 1). The affected urban residents (non-agricultural population) will be resettled concentratedly by adjusting the property right, which can not only save land, but meet the requirements of the urban development plan. 2). The affected rural residents (agricultural population) will be resettled by means of backward disperse method, which can keep the original living style and social relations of villagers, good for recovering and improving their production and income level after the demolition, and strengthening the activity and adaptability of resettlers. 3). Residents (population by economic rehabilitation) affected by the land acquisition will be resettled within the range of their own villages and groups. Realize the restoration of production through adjusting the remained cultivated land, developing new production projects and granting subsidy. Table 0-1: Mitigation Actions Proposed Targets/Indicators Beneficiaries Budget (CNY 103) Timing Measures Protection of Prohibiting nighttime Including 12,600 minority To be included in EIA for 2008-2011 minority construction, people from 4 communities the proposed subproject. communities restoring damaged (villages). from irrigation and construction drainage systems disturbances: Control of Health clinics in Minority residents in PPA Included in the project 2008-2011 transmissible construction camps especially along the dike diseases HIV/AIDS and STIs alignment. Compulsory requirement prevention posters to contractors to take HIV/AIDS and STIs Over 600 construction workers action under the education programs supervision of county Implementation of CDCs (Center for the international Disease Control) anti-AID programs Zero case of HIV/AIDS in the project areas during the construction period Encourage Number of meetings Over 800 women from 4 Included in Government 2008-2010 women to Number of communities (villages). program participate in newsletters meetings and decisions Special Special assistance In 1 affected villages, the Included in Resettlement 2008-2009 support to to vulnerable vulnerable people account for Plan.

32 resettlement people, including 8.3%. For total affected 100 Employment skill training affected keeping 1% of the households and 362 persons, is covered by both people total budget of there are at least 30 vulnerable Resettlement Plan and resettlement for people to be affected by the existing Government them resettlement. programs Options of rehabilitation for relocated households and respect to specific tradition Employment skill training by minority trainers

2. Enhancement Measures

Micro-Credit Program. Under the coordination of county poverty reduction offices, Luxi Women Federation will provide micro-credit service to some 1,500 rural minority women in the 15 townships of Luxi County during the project implementation period. Most of them will be minority women. The average size of the loan is CNY 1000. The loan would be used for the income generating activities. Repayment period ranges from 0.5 to 4 years with annual interest rate of 3.87%. The poverty reduction offices will cover 50% of the credit‟s interest charges. Tourism Development. County governments and their tourism agencies will take the following promotion actions for tourism development:

 Exhibition of Tujia and Miao cultures and establishing tourism infrastructures; preparation of tourism brochures and posters to distribute and display in the rest and parking areas and service stations of the expressway. They are also to be distributed in various tourism agents in counties.  Introduction of the tourism resources with access map on various websites.

Technical Advice and Training. As components of the resettlement plan for income recovery, county technical sectors (i.e., agricultural and forestry bureaus, labor and social security bureau) will provide special technical advices and training to the project affected farmers (men and women) on cash cropping, livestock management, and non-farm skills, as well as job introduction for migrant labors. Skill training will also be provided to enable minority people take employment opportunities from construction of flood control projects. Tax Incentives for Minority Families. To encourage local minority people to engage in secondary and tertiary activities, the local government will provide tax incentives and special policies, such as fixed base, increasing subsidy, and special assistance, waive agricultural tax, and provide priority for the minority households to get small loans.

33 Table 0-１: Enhancement Measures Proposed Measures Targets/Indicators Beneficiaries Budget Source Timing (CNY) Micro credit (mostly to Minority women in Luxi County 1,500 minority 1,500,000 Luxi Women 2008-2 rural women) women Federation 010

Tourism promotion Building ethnic minority scenic All minorities in the 5– 6 million County 2008 spots county town, governments onward particularly small s businesses Advice on agricultural affected minority people in 1 No minority Covered by County 2008 techniques and project community (village) population local governments onwards no-farm skills programs

Tax incentives Tax benefits for new small 15,896 minority County 2008 business, tax exemption for people from 4 Government onwards agricultural activities residential committees (villages).

3. Project Benefit Measures Employment Measures. It is suggested to take the employment of local minority people as unskilled labors for the construction of the expressway as a potential contract item between Luxi PMO and contractors. The contract will specify that contractors should employ at minimum, 75% of local unskilled labors. Full wages will be paid to local people employed for the construction of the flood control components. On-the-job training will be provided for workers and special attention will be paid to the illiterate workers by PMO and contractors. Table 0 -２: Project Benefit Measures Proposed Actions Targets/Indicators Beneficiaries Budget (103CNY) Timing Employment of minorities 80% are to be awarded to 2100 minority as unskilled labors for minority population labors (4 months Included in civil 2008-2011 construction of the flood Contractors use 75% of on average for works contracts related works local labors minimum each person) Employment of minorities at 30 positions for hire, of Included in 20 minority 2011 maintenance and other which 70% would be project operating workers onwards associated activities minorities budget

B. Budget and Financing Sources

All measures are going to be financed by the local government or under the project. The budget for each measure is shown in Tables 5-1, 5-2, and 5-3. Since project design is not finalized yet, budget for the various actions are subject to modifications in the future.

C. Implementation Arrangement

34 Luxi PMO, through its implementing agency and the contractors, will play a leading role in implementing most of the construction-related measures previously presented. Specifically, Luxi PMO will be directly involved in construction of new dikes, improvement of existing ones, and installation of related facilities through finance provision and construction supervision.

County governments will take the leading role in implementing the supportive measures such as technical training, tourism promotion and micro-credit. These actions, routine work of local governments, will undoubtedly be implemented regardless the project. Several government agencies will be involved including minority affairs bureau, land administration bureau, poverty reduction office, forestry bureau, agricultural bureau, women‟s federation (government organized NGO), township governments, etc.

D. Consultation and Participation Plan In the subproject implementation, the local governments and village committees will work closely in coordinating actual implementation, from organizing village labors input to avoiding or mitigating potential negative impacts. The entire subproject implementation will be closely supervised. The combination of county officials and representatives of villagers to form supervision team will be effective. Based on different situation in different villages, different monitoring method could be used to ensure quality of the construction. It will be in villagers‟ own interest to ensure quality of construction since they will be part of beneficiaries when the subproject is completed.

After subproject construction, the assets require clear definition of ownership, responsibility, and funding for maintenance and operation.

E. Grievance Procedures

(1) Possible Complaint and Problem Solving Methods

The EMDP makes overall plan for ethnic minority development scheme from the angle of the affected area of the whole project. In the implementation process, ethnic minorities‟ complaint may appear because of the change of actual situation and deviation of operation. According to experiences got from the constructing and constructed projects, the ethnic minorities‟ complaint may be the several following kinds: a) Index Problem

Because of the error in the process of surveying, statistics and computation, the occupied and removed index in kind may be missed out, without entry and wrongly entered to affect resettled ethnic minorities' benefits. When such problems happen, the affected people through village committee can report to County project Office in oral or written form. After processed by County resettlement Office, the problems should be submitted to County project Office and supervision unit. Under the leadership of County project Office, organize professional personnel to verify on the spot, sign and issue disposal opinions, ratify and register the missed out item, wrongly entered or missed out index in kind and compensate according to the standard. b) Compensation Standard

A number of resettled ethnic minorities might have concerns on the compensation could not meet rehabilitation needs due to lack clear understanding about national resettlement policies and compensation. Prior to implementation of resettlement of ethnic minorities, the design personnel should

35 cooperate with all levels of government and resettlement office, do the technical explanation, explain national resettlement policies and computation process of compensation standard in order to make resettled ethnic minorities understand that compensation standard is compiled according to the national laws and regulations document, which can ensure resettled ethnic minorities move out, live comfortably, develop so as to release their misgiving. c) Funds

In the construction process, due to slow allocation of resettlement funds, houses building, and economic rehabilitation of resettled ethnic minorities might be affected. Such questions require managers of implementation of resettlement control funds, schedule and quality to ensure resettlement funds can be used effectively as designated. The resettlement fund allocation should be in accordance with the schedule every month and resettlement of ethnic minorities proceeds according to the schedule.

(2) Appeal Channel and Procedure

Ethnic minorities enjoy rights and obligations, which are endowed by constitution and law. The existing laws and codes of our nation can guarantee ethnic minorities‟ lawful rights are not violated. Appeal until getting it, if the lawful rights and interests are violated. a) Appeal Channel  Complaint Office (including ethnic minority development and resettlement) is set in county, city and province of and can investigate and deal with general appeal question of ethnic minorities;  Establish all levels of local ethnic minority development setup according to the law, every lever has the authority to supervise the lower level from province, city to county and can accept appeal case in the way of ethnic minority development;  Self-governed ethnic minority development monitoring setup works according to relative regulations of nation, is responsible for maintaining ethnic minorities' lawful rights and interests. The appeal problems of the violation of the rights of ethnic minorities can also be accepted and reflected;  The violation laws and discipline case relating to ethnic minorities' appeal can be accepted in the law departments such as administrative supervision, auditing, discipline inspection, judiciary and prosecutorial department. b) Appeal Procedure

If any ethnic minority does not agree with EMDP and resettlement plan, he/she can reflect to village committee (residential committee), which could consult with local ethnic minority development office and/or local resettlement office directly, or appeal to superior ethnic minority development office and/or superior resettlement office in oral form or written form. After superior ethnic minority development office and/or superior resettlement office accept the appeal, keep records and consult with village committee and local ethnic minority development office and/or local resettlement office within 10 days. If the contradiction and dispute cannot be solved, in accordance with appeal channel, village committee can appeal to administrative setups step by step such as project office, ethnic minority development/resettlement management setup, ethnic minority development/resettlement monitoring setup, complaint office, administrative supervision, disciplinary inspection and procuratorial department etc.) According to Administrative Procedure Law of People‟s Republic of China. If ethnic minorities are still not satisfactory, appeal to people‟s court directly. Ethnic minority development office and/or resettlement office are responsible for keeping records of all appeal problems and solving process and keeps in the archives.

36 F. Monitoring and Evaluation (M&E)

The implementation of monitoring and elevation will ensure the EMDP can be rationally executed and the target can be fulfilled, especially catering for the target of ADB‟s Indigenous Policy. The process of internal and external monitoring and evaluation will assess on the property of stakeholders and also evaluate if relevant measures have been put into force and any effect has been achieved, the ethnic minority people have got equitable and impartial benefits from the project , and their culture and custom have been taken into consideration.

Prior to the implementation of project activities, the baseline survey has been carried out and the survey covers ethnicity, poverty degree and people‟s livelihood. The subsequent monitoring and elevation on EMDP will use these baseline data to weigh the results and impacts brought by the project. When the project is completed, the implementation quality of measures in relation to EMDP will be measured through the evaluation so as to assess the impact of the project on ethnic minorities.

The monitoring and evaluation content of EMDP will include：

(i) Collect data and information for determining the general impacts and project impacts, including the qualitative information for describing the change of ethnic minority residents and communities;

(ii) Assess on the nature of ethnic minority stakeholders, if necessary, the participation methods and channels can be taken consideration into the planning and implementation of EMDP activities;

(iii) To evaluate that if the negative impacts have been fully mitigated, the ethnic minority residents have got equitable and impartial benefits from the project and their culture and custom have been taken into consideration;

(iv). Analyze and file up the results so as to meet the requirements of the flood management intervention plan in the future;

(v). File up the key measures and processes taken in the project so as to pave the way for other similar projects.

The internal monitoring for EMDP will be made as one part of the whole management system of the project. The PMO will inspect on and evaluate the EMDP implementation, and report important issues to ADB in the form of quarterly report when necessary.

The external monitoring and evaluation will be implemented by the agency of independent property at home and the agency shall be qualified with enough experiences in similar tasks and projects (for example, rural investigation group, and consultation company or research institute). And the external monitoring personnel shall sign an agreement with PPMO of Hunan and they shall take the following responsibilities:

(i) To monitor the social and economic activities of the affected ethnic minority families periodically;

(ii) To implement and participate the evaluation within PA;

(iii) To collect secondary data, namely data in relation to the city, town, township and villages of all levels;

(iv) To formulate the yearly monitoring and evaluation report and submit it to Hunan PPMO and ADB;

(v) To provide LPMO and local government with advices for promoting the implementation of EMDP.

The collection of data should be kept to a minimum and concentrate on data that is required for key

37 indicators. The following list provides some broad evaluation indicators that are of greatest importance. Specific indicators related to the implementation of the EMDP are listed in previous Tables. Data collected shall be disaggregated by sex and by ethnic group whenever possible:

 Production output value in target villages  income per capita  poverty incidence  ownership of assets in selected villages.  new commercial activity along the new river front  changes in quality of water and health with reasons for selected communities (villages)  new houses built/under construction in selected communities (villages)  frequency of technical and socio-economic advice and training to selected communities (villages)  school attendance classified by grade, gender and ethnicity and drop out rate for selected communities (villages)

Not all the above questions will apply in every case. Some relate only to villages affected by the project. Others are only appropriate once the flood control project has been constructed. Questions in the „before construction survey‟ should instead probe into the anticipated benefits from the schemes and other development priorities. Surveys would be carried out in communities (villages) located in close proximity to the project.

Luxi PMO understands that ADB will play a leading role in formulating the M&E plan. Therefore, ADB will provide guidance to prepare a feasible M&E plan before project implementation. Luxi PMO will coordinate its implementing agency and local government to assist the consultant team to carry out the M&E plan. The budget for monitoring and evaluation activities will be worked out once detail M&E plan is completed, which will be used for hiring the domestic PPMS specialist and domestic EMDP monitoring agency.

38