Resettlement Monitoring Report

Project Number: 35354 April 2010

PRC: - Railway Development – Resettlement Action Plan Monitoring Report No. 1

Prepared by: CIECC Overseas Consulting Co., Ltd , PRC

For: Ministry of Railways

This report has been submitted to ADB by the Ministry of Railways and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

The People’s Republic of ADB Loan

Lanzhou—Chongqing RAILWAY PROJECT

EXTERNAL MONITORING & EVALUATION OF

RESETTLEMENT ACTION PLAN

Report No.1

Prepared by

CIECC OVERSEAS CONSULTING CO.,LTD

April 2010 Beijing 10 ADB LOAN EXTERNAL Monitoring Report– No. 1

TABLE OF CONTENTS PREFACE 4 OVERVIEW...... 5 1. PROJECT BRIEF DESCRIPTION ...... 7 2. PROJECT AND RESETTLEMENT PROGRESS ...... 10 2.1 PROJECT PROGRESS ...... 10 2.2 LAND ACQUISITION, HOUSE DEMOLITION AND RESETTLEMENT PROGRESS...... 10 3. MONITORING AND EVALUATION ...... 14 4. RESETTLEMENT AUTHORITIES...... 15 5. LAND ACQUISITION AND HOUSE DEMOLITION MONITORING...... 16 5.1 LAND ACQUISITION MONITORING ...... 16 5.1.1 PROVINCE...... 16 5.1.1.1 LANZHOU CITY ...... 16 5.1.1.2 CITY...... 17 5.1.1.3 CITY ...... 17 5.1.2 PROVINCE...... 17 5.1.3 PROVINCE ...... 17 5.1.3.1 CITY ...... 17 5.1.3.2 CITY...... 17 5.1.3.3 GUANG’AN CITY ...... 17 5.1.4 CHONGQING CITY...... 18 5.2 HOUSE DEMOLITION MONITORING ...... 18 5.2.1 GANSU PROVINCE...... 18 5.2.1.1 LANZHOU CITY ...... 18 5.2.1.2 DINGXI CITY...... 18 5.2.1.3 LONGNAN CITY ...... 18 5.2.2 SHAANXI PROVINCE...... 18 5.2.3 SICHUAN PROVINCE ...... 19 5.2.3.1 GUANGYUAN CITY ...... 19 5.2.3.2 NANCHONG CITY...... 19 5.2.3.3 GUANG’AN CITY ...... 19 5.2.4 CHONGQING CITY...... 19 5.2.4.1 CHONGQING CITY...... 19 6. ATTACHMENT AND INFRASTRUCTURE MONITORING...... 19 6.1 ATTACHMENT MONITORING...... 19 6.2 AFFECTED INFRASTRUCTURE MONITORING ...... 22 7. LAND ACQUISITION AND HOUSE DEMOLITION COMPENSATION STANDARDS AND PAYMENT MONITORING...... 23 7.1 POLICIES ON LAND ACQUISITION AND HOUSE DEMOLITION COMPENSATION ...... 23 7.1.1 LAND ACQUISITION, HOUSE DEMOLITION AND RESETTLEMENT COMPENSATION STANDARDS MONITORING ...... 26 7.1.1.1 COMPENSATION STANDARDS FOR LAND ACQUISITION...... 26 7.1.1.2 COMPENSATION STANDARDS FOR HOUSE DEMOLITION AND RELOCATION...... 30 7.1.2 PAYMENT FOR COMPENSATION FOR LAND ACQUISITION AND HOUSE DEMOLITION ...... 38 7.1.2.1 GANSU PROVINCE...... 39 7.1.2.2 SHAANXI PROVINCE...... 39 7.1.2.3 SICHUAN PROVINCE ...... 40 7.1.2.4 CHONGQING MUNICIPALITY ...... 40 8. AP RESETTLEMENT RESULTS MONITORING...... 41 8.1 AP RESETTLEMENT ...... 41 8.2 HOUSE DEMOLITION AP RESETTLEMENT...... 43 8.3 SOCIAL AND ECONOMIC IMPACTS OF LCR PROJECT EXECUTION ...... 44 8.4 TYPICAL INTERVIEWS CONDUCTED BY EXTERNAL MONITORING EVALUATION TEAMS...... 45 8.4.1 GANSU PROVINCE...... 45 8.4.2 SHAANXI PROVINCE...... 50 8.4.3 SICHUAN PROVINCE ...... 50 8.4.4 CHONGQING MUNICIPALITY ...... 55 9. CONCLUSION, PROBLEM AND RECOMMENDATION ...... 57 9.1 MONITORING EVALUATION CONCLUSION...... 57 2 CIECC OVERSEAS CONSULTING CO.,LTD

ADB LOAN EXTERNAL Monitoring Report– No. 1 9.2 PROBLEM AND RECOMMENDATION ...... 58 9.3 ARRANGEMENT OF EXTERNAL MONITORING INSTITUTION FOR FURTHER WORK...... 59 10. ANNEXURE ...... ERROR! BOOKMARK NOT DEFINED. 10.1 NAME LIST OF VILLAGES AFFECTED BY LAND ACQUISITION AND HOUSE DEMOLITION FOR LCR CONSTRUCTION ...... ERROR! BOOKMARK NOT DEFINED. 10.2 NAME LIST OF DEMOLISHED AND RELOCATED BUSINESSES, GOVERNMENT-SPONSORED ORGANIZATIONS AND SCHOOLS ...... ERROR! BOOKMARK NOT DEFINED. 10.3 PHOTOS TAKEN ON-SITE ...... ERROR! BOOKMARK NOT DEFINED.

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ADB LOAN EXTERNAL Monitoring Report– No. 1 Preface

In accordance with the loan agreement between the Ministry of Railway and Asia Development Bank (ADB), the external monitoring institution (Intuition) for resettlement under Lanzhou-Chongqing Railway (LCR) Development Project needs to submit external monitoring report to ADB bi-annually.

From February to March 2010, the Institution has formed two monitoring investigation and evaluation teams to conduct monitoring investigation along the to-be-built railway in Gansu, Sichuan, Shaanxi and Chongqing, according to predefined monitoring investigation outlines and evaluation indicators. The investigation covers relevant data and materials for resettlement report, and meanwhile, contributions of women participation and project execution to local social development and poverty reduction. This article is the 1st issue of external monitoring report, with underlying information not later than March 2010. In evaluation, data related to land acquisition, house demolition and people resettlement is provided by resettlement authorities of local governments along LCR, and reference to macro-data from LYRC is also made.

The external independent monitoring evaluation work of the Institution has received collaboration and support from MOR, project owner LYRC, the project executing parties and the local governments along LCR in Gansu, Sichuan, Shaanxi and Chongqing, and the Institution hereby acknowledges their contributions.

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Overview

1. LCR spans 819.975km, with Lanzhou to Guanyuan (excluded) 491.437km, Guangyuan (included) to Chongqing 328.538km, and newly-built single track between Nanchong, Guang’an and Gaoxing 93.639km. The planned total investment is RMB 82.9148 billion, including ADB loan USD 300 million. The project takes 6 years to complete, and land acquisition and house demolition affects 246 villages, 77 towns/townships, 20 counties/districts and 7 cities in Gansu, Sichuan, Shaanxi and Chongqing: in Gansu, and Chengguan of Lanzhou City, , , Weiyuan County, Linyao County and Anding County of Dingxi City, and and Dangchang County of Longnan City; in Shaanxi, Ningqiang County of City; in Sichuan, , , Yuanbai District and Changxi County of Guangyuan City, City, , and of Nanchong City, and of Guang’an City; and in Chongqing, Hechuan District. LCR starts from Lanzhou Railway Hub in Gansu to span southward and passes successively Dingxi and Longnan of Gansu, Hanzhong of Shaanxi, Guangyuan, Nanchong and Guang’an of Sichuan and Hechuang of Chongqing to reach Chonqing railway hub. A single track will branch from Nanchong to connect Gaoxing.

2. Permanent acquisition of land of 28,592.03 mu and house demolition of 833,836.00m2 has been made for this project, with 2,980 households and 9,540 people being affected. In Gansu, 13,269.73 mu of land has been permanently acquired and 644,011.00m2 of house demolished; in Shaanxi, 73.70 mu and 500.00m2; in Sichuan, 13,951.80 mu and 188,550.00m2 and in Chongqing, 1,656.80 mu and 775.00m2.

3. In comparison with RAP plan for LCR, the originally planned permanent land acquisition is 24,694 mu and the actual is 115.7% higher. In Gansu, actual permanent land acquisition is 118.1% of 112,344 mu as per RAP plan, in Shaanxi, 93.3% of 79 mu as per RAP plan, in Sichuan, 130.5% of 10,690 mu as per RAP plan and in Chongqing, 61.6% of 2,691 mu as per RAP plan. Actual house demolition is 70.1% of 1,189,240m2 as per RAP plan.

4. As of Dec 31st, 2009, actual compensation made to APs in Gansu was RMB182.654 million, and this was made to APs under town/township level only, without considering the

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ADB LOAN EXTERNAL Monitoring Report– No. 1 administration expenses and the compensation made by parties other than county/district resettlement authorities.

5. In Shaanxi, the executing parties have advanced RMB4.7 million for land acquisition and house demolition expenses.

6. In Sichuan, actual compensation made to APs was RMB190.850 million, including 51.549 million in Guangyuan, 77.929 million in Nanchuang and 61.372 million in Guang’an .

7. In Chongqing, actual compensation made to APs was RMB27.993 million.

8. LCR land acquisition compensation and resettlement authorities offers APs multiple resettlement options, including reserved land resettlement, cash compensation to APs, farming to non-farming household registration and joining social security and employment system.

9. It can be safely concluded from the various and massive information gathered that during the process of land acquisition, house demolition, resettlement and compensation for LCR project, the APs has been well resettled, restoration of their living is effective and majority of the APs feel satisfied with compensation and resettlement.

10. But some problems are still pending for solution, including: dilapidated houses outside of the Red Line needs to be examined and treated; some resettled households whose houses were demolished but land is not acquired now reside long distance from their land; some temporarily acquired land can longer be re-cultivated and needs to be checked by qualified institutions so that it can be treated as permanently acquired land; and project execution cuts off irrigation to some farmlands and at many places it is not possible to add new irrigating facilities, so local governments and villagers require to treat such as dry-land and to make according compensation. The monitoring team acknowledges that most problems have been raised and are pending for solution, and hopes that competent authorities to accelerate handling to avoid impact on farming work. Some cornered land lots that have no access or water supply are created by project execution, and local governments and villagers require the executing parties to acquire them, to which the LCR Project Construction Headquarters reply that it is unnecessary to acquire the land, but appropriate compensation can be made. The monitoring team acknowledges that most problems have been closed, but some are still open, and the team 6 CIECC OVERSEAS CONSULTING CO.,LTD

ADB LOAN EXTERNAL Monitoring Report– No. 1 hopes that the competent authorities to accelerate handling to avoid impact on farming work. Large volume of water gathers in many tunnels due to limits of railway speed raising and design, which brings about considerable inconveniences to living and work of residents along the railway. APs complain strongly and competent authorities have already taken measures, but water gathering in some tunnels remains unresolved up to date. It is hoped that competent authorities take expedient efforts to protect the interests of the re-settlers. At some places, compensation agreement has been reached with numerous small businesses, such as small workshop and small store, for land acquisition and house demolition, but the land for resettlement can’t be arranged in time. The Institution believes that this will present potential adversities to the resettlement of these affected small businesses and their restoration of operations. It is recommended that more secured resettlement approach be developed for these affected small businesses to help them resume operations.

1. Project Brief Description

LCR spans 819.9751km, with total planned investment RMB82.9146 billion. It starts on the north from Lanzhou, passes central and southern Gansu, lightly touches southwest corner of Shaanxi, dives into Eastern Sichuan and joins other railways in Chongqing. From Lanzhou Eastern Railway Station where it starts, LCR runs south to join Longhai Railway in Jinya, and then it extends into deeper south to reach Nanchong and then passes Guang’an to reach Chongqing Northern Railway Station. LCR will be an electrified double track constructed to MOR’s Class 1 standards, with a carrying capacity designed to provide high speed, 200km/hr passenger trains, as well as lower speed express passenger train service (160 km/hr) and double stack container freight trains at 120 km/hr.

Land acquisition and house demolition for the main line of this project affects 246 villages, 77 towns/townships, 20 counties/districts and 7 cities in Gansu, Sichuan, Shaanxi and Chongqing: in Gansu, Yuzhong County and Chengguan District of Lanzhou City, Min County, Zhang County, Weiyuan County, Linyao County and Anding County of Dingxi City, and Wudu District and Dangchang County of Longnan City; in Shaanxi, Ningqiang County of Hanzhong City; in Sichuan, Chaotian District, Lizhou District, Yuanbai District and Changxi County of Guangyuan City, Langzhong City, Nanbu County, Jialing District and Shunqing District of Nanchong City, and Wusheng County of Guang’an City; and in Chongqing, Hechuan District. 7 CIECC OVERSEAS CONSULTING CO.,LTD

ADB LOAN EXTERNAL Monitoring Report– No. 1 11. LCR is a railway funded and built by MOR and three provinces (city) as Gansu Province, Shaanxi Province, Sichuan Province and Chongqing Municipality. LYRC, having formally registered with industrial and commercial administration authority of Lanzhou City on Mar 19th, 2010, is mainly responsible for project implementation and management.

12. To execute LCR project, a company (LYRC) is formed to be mainly responsible under the leadership of the board of directors, execution work will be contracted to a main contractor, project design will be provided on consultation basis and the implementation will be monitored by independent supervisors. Departments for general affairs, plan and finance, technology and equipment, safety and quality, project management and land acquisition and demolition are established, and two on-site offices respectively under the leadership of two vice general managers, including Longnan Project Construction Headquarters (Lanzhou to Guangyuan (excluded) 491.437km) and Nanchong Project Construction Headquarters (Guangyuan (included) to Chongqing 328.538km) are also founded to coordinate project execution.

13. The LCR project will be executed in parallel in two execution units as Xiaguan Ying to Guangyuan and Guangyuan to Chongqing. Four laying bases will be setup as Jinya Laying Base, Nanchong Laying Base, Xinglong Chang Laying Base and Gaoxing Laying Base.

The project is contracted by LYRC and contracted to 16 executing parties and 13 supervision parties through bid selection for 16 tender packages. Table 1-1 lists the executing and supervising parties for each bid section.

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Table 1-1 Executing and Supervising Parties for Each Bid Section of LCR Bid Section Length No. Sec. Executing Party Supervising Party Railway Mileage (Km) China Railway 19th Bureau 1 LYS-1 Xi’an Engineering Consultancy and Supervision Co., Ltd., FSDI DK30+000－DK103+150 73.14 China Railway 10th Bureau

2 LYS-2 China Railway 16th Bureau Gansu Tieke Construction Supervision Co., Ltd. DK103+150- DK173+200 69.96

China Railway Tunnel Group 3 LYS-3 Beijing Tiecheng Construction Supervision Co., Ltd. DK173+200- DK259+510 83.74 China Railway 7th Bureau China Railway 13th Bureau 4 LYS-4 Beijing Tieyan Construction Supervision Co., Ltd. DK259+510- DK352+759 93.65 China Railway 11th Bureau

5 LYS-5 CCCC 2nd Highway Engineering Co., Ltd. Lanzhou Jiaotong University Construction Supervision Co., Ltd. DK352+759- DK391+800 33.45

6 LYS-6 CCCC 1st Harbor Engineering Co., Ltd. Inna Mongolia Jingyuan Construction Supervision Co., Ltd. DK423+915- DK501+005 76.94

7 XQLS1 China Railway 13th Bureau Sichuan Tieke Construction Supervision Co., Ltd. DK391+800- DK423+915(Right to Line) 32.11

8 XQLS2 China Railway Tunnel Group Sichuan Tieke Construction Supervision Co., Ltd. DK391+800-DK423+915 (Left to Line) 32.11

9 LYS-7 China Railway 21st Bureau Gansu Xinda Construction Supervision Co., Ltd. DK000+000- DK30+000 29

10 LYS-8 China National Coal Group Corp. Zhongyuan Construction Supervision Co., Ltd. DK569+385- DK577+450 8.065

11 LYS-9 China Railway 18thBureau Zhengzhou Zhongyuan Construction Supervision Co., Ltd DK606+710- DK615+725 9.015

12 LYS-10 China Railway 2ndBureau SSDI Engineering Consultancy and Supervision Co., Ltd., DK615+725- DK647+300 31.575

13 LYS-11 China Road & Bridge Corp. Beijing Fangda Construction Supervision Co., Ltd. DK647+300- DK754+000 105.617

14 LYS-12 CCCC 1st Highway Engineering Co., Ltd. Henan Changcheng Construction Supervision Co., Ltd. DK754+000- DK881+400 108.354

Not Within 15 LYS-13 China Railway 1stBureau Henan Changcheng Construction Supervision Co., Ltd. ID2K770+955.51-ID2K860+092 Supervision

16 LYS-14 China Railway 10thBureau Beijing Tiecheng Construction Supervision Co., Ltd. DK881+400-DK952+110.299 70.713

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14. The Institution has confirmed with the local governments along LCR that 246 villages, 77 townships/towns and 22 counties of the three provinces and one municipality are to be affected by land acquisition and house demolition. Please refer to Annex I for affected villages.

2. Project and Resettlement Progress

2.1 Project Progress

15. In accordance with the latest progress brief submitted by Department of Project Management, LYRC, the project is executed smoothly in terms of accomplished real work quantity. As of end of February 2010, RMB679.38 million, or 0.82% of total investment has been invested to complete 117.86 million m3 of earthwork (e.g. 7.43% of design), 13,757.10 linear meters of bridges (e.g. 6.84% of design) and 58,256.10 hole-meters of tunnel (e.g. 9.33% of design).

2.2 Land Acquisition, House Demolition and Resettlement Progress

16. Land acquisition and house demolition for LCR is performed and paid by local governments, with the expenses being treated as shares paid by local governments to LYCR. Gansu, Shaanxi, Sichuan and Chongqing undertake to raise, utilize and allocate the funds to acquire lands and demolish houses, and to make the according compensations, and LYCR needs to collaborate with local governments in land acquisition and house demolition.

17. The land acquisition and house demolition data (Table 2-1) as of end of February 2010 furnished by LYCR shows that land acquisition and house demolition in some counties and districts has already finished, where work in Chongqing is still in progress, and work in other places has finished by over 50%.

18. According to information provided by local resettlement authorities along LCR, in the four affected provinces/municipality, totally 28,952.03 mu of land has been acquired permanently by the Project, with detailed distribution for each province/district/county as shown in Table 2-1.

19. In terms of land acquisition progress, permanent acquisition for resettlement has been accomplished by 116.9%. When comparing with RAP plan, it was originally planned to permanently acquire land of 24,694 mu, and the actual acquired is 15.7% more, of which actual acquired land in Gansu is 118.1% of RAP planned 112,344 mu, in Shaanxi 93.3% of RAP planned 79 mu, in Sichuan 130.50% of RAP planned 10,690 mu and in Chongqing 61.6% of RAP planned 2,691 mu.

10 ADB LOAN EXTERNAL Monitoring Report– No. 1 20. Land to be temporarily acquired for resettlement has been initially determined to be 20,826 mu, of which 8,666.28 mu has already been acquired. Gansu has acquired 6,050.00 mu, 49.4% of the 12,254 mu for resettlement plan, Sichuan 1,956.28 mu, 28.7% of the 6,816 mu for resettlement plan, and Chongqing 380.00 mu, 21.9% of the 1,733 mu for resettlement plan. Temporarily needed land can be consulted by contracting parties with local villagers.

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Table 2- 1 LCR Project Land Acquisition and House Demolition Progress Table

Land Acquisition House Demolition

Permanent Temporary House Demolished No. Location Mu Mu m2 Total in 2009 Since Since Total in Total in 2009 Since Kick-off (Actual) Kick-off Kick-off 2009

Lanzhou 3,764.73 3,764.73 38,323.00 38,323.00

Yuzhong 2,227.00 3,576.00 110,390.00 135,890.00 6,050.00 6,050.00 1 Dingxi 2,103.00 2,927.00 176,960.00 194,005.00

Longnan 1,724.00 3,002.00 222,341.00 275,793.00

Gansu 13,269.73 6,050.00 644,011.00 Sub-total

Ningqiang 73.70 280.00 500.00 2 Shaanxi 73.70 280.00 500.00 Sub-total

3 Guangyuan 2,000.00 3,642.36 1,000.00 1,000.00 28,000.00

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ADB LOAN EXTERNAL Monitoring Report– No. 1 Nanchong 4,100.00 6,080.66 370.00 370.00 22,850.00

Guang’an 2,840.78 4,228.78 586.28 586.28 137,700.00

Sichuan 13,951.80 1,956.28 188,550.00 Sub-total

Hechuan 1,656.80 1,656.80 380.00 775.00 4 Chongqing 1,656.80 380.00 775.00 Sub-total

5 Total 28,952.03 8,666.28 833,836.00

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ADB LOAN EXTERNAL Monitoring Report– No. 1

22. Data from local resettlement authorities shows that as of 1st issue of LCR external monitoring report, 833,836.00m2 of house has been demolished.

23. In terms of house demolition progress, 70% of the 1189,240m2 planned for resettlement has been demolished, of which Gansu has demolished 644,011.00m2, or 198.5% of the planned 324,220m2, Sichuan 188550.00m2, or 23.6% of the planned 799469 m2, and Chongqing 775.00m2, or 1.2% of the planned 64,301m2. House demolition is in progress.

24. In addition to demolishing residential housing, at 37 sites large housing of businesses, government-sponsored institutions and schools has also been demolished, of which 18 is in Gansu, 7 in Sichuan and approximately 12 in Chongqing (without adequate detailed information). Please refer to Annex II.

25. In general the resettlement proceeds smoothly, and as of this phase of external monitoring investigation, compensation for land acquisition and house demolition along LCR has already been made, and housing land for building new houses has been provided to APs on FOC basis, where for new houses are under construction, most APs have not moved into new houses. Demolition of business houses is still in consultation.

3. Monitoring and Evaluation

26. This phase of resettlement external monitoring is the 1st phase of external monitoring for LCR project. To successfully complete external monitoring and evolution, the Institution (Beijing Zhongzi Overseas Consultation Co., Ltd.) formed dedicated monitoring and evaluation teams and defined scope, contents, monitoring indicators, methodology and schedule of the independent monitoring and evolution in accordance with the agreed Independent Monitoring and Evaluation Work Outlines and External Independent Monitoring On-site Investigation Work Scheme.

27. 1st phase of monitoring and evaluation on-site investigation was performed along LCR in February to March 2010. The Institution dispatched two on-site investigation and evaluation teams to perform external monitoring and evaluation in the three provinces and one municipality. The teams visited LYCR headquarters, Longnan Project Construction Headquarters, Nanchong Project Construction Headquarters, Land Consolidation and Land Consolidation and Acquisition Office of Chengguan District of Lanzhou City, and resettlement and land administration authorities at the following places: in Gansu, Yuzhong County, Aning District, Anding District of

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ADB LOAN EXTERNAL Monitoring Report– No. 1 Dingxi City, Weiyuan County, Zhang County, Min County, Dangchang County of Longnan City, and Wudu District; in Shaanxi , Hanzhong City; in Sichuan, , Chaotian District, Shizhong District, Yuanba District, Changxi County of Guangyuan City, Nanbu County, Shunqing District, and Langzhong City of Nanchong City, and Wusheng County of Guang’an City; and Hechuan County of Chongqing Municipality. The teams also held interviews with 16 project contractors along LCR. The teams gather macro-data and acknowledge resettlement progress through visits to villages and rural households and interviews with resettlement authorities at county/district level, and sometimes at township/town level.

4. Resettlement Authorities

28. Resettlement authorities for LCR project consists of one dedicated land acquisition and house demolition commissioner at the high-level project coordination institution—Foreign Capital and Technical Import Center of MOR, resettlement coordination authorities at province/municipality level, and land acquisition and house demolition office of LYCR. Competent authorities at county level will actually perform land acquisition, house demolition and resettlement under the consolidated arrangement of the province-level coordinating authorities.

LYRC Consultation

Empowerment

and Assistance Tender

Invitation Monitoring Institution for House Demolition

Contr a-acti

Executing Project Supervision Parties Party

Execution Supervisio

LCR Project Construction Project Execution

Evaluation

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Figure 4-1 Block Diagram for Resettlement Monitoring Process

5. Land Acquisition and House Demolition Monitoring

29. As of December 2009, land of 28,878.33 mu has been acquired for construction of tracks, stations and auxiliary buildings of LCR, and 832,561.00m2 of house been demolished. Local resettlement authorities have not estimated number of the affected households and people.

5.1 Land Acquisition Monitoring

30. As of this phase of on-site external monitoring, LCR project has actually acquired 115.7% more land than the 24,694 mu as RAP originally planned, of which Gansu has acquired 118.1% of RAP planned 112,344 mu, Shaanxi 93.3% of RAP planned 79 mu, Sichuan 130.5% of RAP planned 10,690 mu, and Chongqing 61.6% of RAP planned 2,691 mu.

31. The project has temporarily acquired land of 8666.28 mu, 115.7% of the orginally planned land as per RAP, of which Gausan has aquired 118.1% of RAP planned 112,344 mu, Shaanxi 93.3% of RAP planned 79 mu, Sichuan 130.5% of RAP planned 10,690 mu and Chongqing 61.6% of RAP planned 2,691 mu.

5.1.1 Gansu Province

32. In Gansu province, land acquisition and house demolition for LCR involves Chengguan District and Yuzhong County of Lanzhou City, Min County, Zhang County, Weiyuan County, Linyao County and Anding County of Dingxi City, Wudu District and Dangchang County of Longnan City, with permanently acquired land up to 13,269.73 mu. Please refer to Table 2-1 for details.

5.1.1.1 Lanzhou City

33. Yuzhong County and Chengguan District are affected by permanent land acquisition of 7,340.73 mu, or 128.2% of RAP planned 5,727 mu, with Yuzhong acquired 3,576.00 mu and Chengguan District 3,764.73 mu.

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ADB LOAN EXTERNAL Monitoring Report– No. 1 5.1.1.2 Dingxi City

34. Min County, Zhang County, Weiyuan County, Linyao County and Anding County are affected by permanent land acquisition of 2,927 mu, or 106.4% of RAP planned 2,749 mu.

5.1.1.3 Longnan City

35. Wudu District and Dangchang County are affected by permanent land acquisition of 3,002.00 mu, or 108.8% of RAP planned 2,758 mu.

5.1.2 Shaanxi Province

36. Only one county—Ningqiang of Hanzhong City is affected by permanent land acquisition of 73.70 mu, or 88.5% of RAP planned 83 mu.

5.1.3 Sichuan Province

37. Chaotian District, Qingchuan County, Shizhong District, Yuanbai District and Changxi County of Guangyuan City, Nangzhong City, Nanbu County, Jianing District, Shunqing District and Gaoping District of Nanchong City, and Wusheng County of Guang’an City will be affected by permanent land acquisition of 13,951.80 mu, or 130.5% of RAP planned 10,690 mu. Please refer to Table 2-1 for details.

5.1.3.1 Guangyuan City

38. Chaotian District, Qingchuan County, Shizhong District, Yuanbai District and Changxi County will be affected by permanent land acquisition of 3,642.36 mu, or 108.5% of RAP planned 3,358 mu.

5.1.3.2 Nanchong City

39. Nangzhong City, Nanbu County, Jiangling District, Shunqing District and Gaoping District will be affected by permanent land acquisition of 6,080.66 mu, or 99.8% of RAP planned 6,092 mu.

5.1.3.3 Guang’an City

40. Only Wusheng County will be affected by land acquisition of 4,228.79 mu, or 341.0% of RAP planned 1,240 mu.

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ADB LOAN EXTERNAL Monitoring Report– No. 1 5.1.4 Chongqing City

41. Only Hechuan District will be affected by land acquisition of 1,656.80 mu, or 61.5% of RAP planned 2,691 mu.

5.2 House Demolition Monitoring

42. For details about house demolition for LCR project, please refer to Table 2-1. House demolition of 833,836.00m2, 70.1% of RAP planned 1,189,240m2, has already been made along LCR.

43. In addition to residential house demolition, large housing owned by businesses, government-sponsored institutions and schools also has been demolished at 37 sites, of which 18 is in Gansu, 7 in Sichuan and 12 in Chongqing. Please refer to Annex II for details.

5.2.1 Gansu Province

44. House demolition of 644,011.00m2 has been made in 7 counties of 3 cities in Gansu Province, or 198.6% of RAP planned 324,220m2.

5.2.1.1 Lanzhou City

45. House demolition of 174,213.00m2 has been made in Lanzhou, or 74% of RAP planned 235,367.00m2, including 135,890.00m2 in Yuzhong County and 38,323.00m2 in Chengguan County respectively.

5.2.1.2 Dingxi City

46. House demolition of 194,005.00m2 has been made in Min County, Zhang County, Weiyuan County, Linyao County and Anding County, or 444.9% of RAP planned 43,383.00m2.

5.2.1.3 Longnan City

47. House demolition of 275793.00m2 has been made in Wudu District and Dangchang County, or 606.5% of RAP planned 45,470m2.

5.2.2 Shaanxi Province

48. Only 500m2 of house has been demolished in Ningqiang County of Hanzhong City, or 40% of RAP planned 1,250.00m2.

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ADB LOAN EXTERNAL Monitoring Report– No. 1 5.2.3 Sichuan Province

49. 188,550.00m2 of house, or 23.6% of RAP planned 799,469.00m2, has been demolished in Chaotian District, Lizhou District, Yuanba District and Changxi County of Guangyuan City, Nangzhong City, Nanbu County, Jialing District and Shunqing District of Nanchong City, and Wusheng County of Guang’an City.

5.2.3.1 Guangyuan City

50. In the four counties/districts affected by LCR, including Chaotian District, Lizhou District, Yuanba District and Changxi County, house demolition of 28,000,00m2 has been made, or 7.3% of RAP planned 380,980.00m2.

5.2.3.2 Nanchong City

51. Land acquisition is in progress in affected Langzhong City, Nanbu County, Jialing District and Shunqing District, and house demolition of 22,850.00m2 has been made, or 5.9% of RAP planned 384,849.00m2.

5.2.3.3 Guang’an City

52. Only Wusheng County is affected by LCR project, and house demolition of 137,700.00m2 has been made, or 409.3% of RAP planned 33,640.00m2.

5.2.4 Chongqing City

5.2.4.1 Chongqing City

53. Only Hechuan District is affected, where house demolition of 775.00m2 has been made, or 1.2% of RAP planned 64,301.00m2.

6. Attachment and Infrastructure Monitoring

6.1 Attachment Monitoring

54. In this phase of monitoring investigation and evaluation, the resettlement external monitoring teams only obtain attachment information provided by resettlement authorities of Gansu Province

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ADB LOAN EXTERNAL Monitoring Report– No. 1 and Sichuan Province, as Table 6-1 shows. Shaanxi Province and Chongqing Municipality fail to submit detailed statistics.

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ADB LOAN EXTERNAL Monitoring Report– No. 1 Table 6-1 Affected Attachments in Counties of Yuling, Gansu

Apple, Pear, Peach, Poplar Tree, Landsc County/ Almond, Willow Tree ape Willow Nursery Herbs Jujube Tree Special Tree District Plum and and Other Conife for Rafter (mu) (mu) phylloxera Trees r grape, etc.

Yuzhong 300 9,847 4,060 0 33 85.5 2 8

Chengguan

Anding 702

Linyao 242 8.96

Weiyuan 2,169 4,872 0 62.076 127.306 0 0

Zhang County 29.37 25.21

Min County 8,174 5,247 0 0 319.935 0 0

Dangchang 266 33,795 55,400 35 77.235 38 93,601 0

Wudu 360 31,988 84,883 342 6,012.938 0 0 0

Gansu Total 926 86,917 154,462 377 6,223.579 595.951 93,603 8

Changxi 20,584 199,495

Langzhong 51,000 8,140,000

Nanbu 250 60

Shunqing 5.7

Chaotian 387 1442

Lizhou 8 2,925 1,877 15.5

Sichuan Total 258 74,896 834,2814 0 15.5 0 0 65.7

Total 1,184 161,813 8,497,276 377 6,239.079 595.951 93,603 73.7

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ADB LOAN EXTERNAL Monitoring Report– No. 1

6.2 Affected Infrastructure Monitoring

55. In this phase of external monitoring evaluation, some counties/districts submit data on affected infrastructure, as Table 6-2 shows.

Table 6-2 Infrastructure Affected by LCR Project Item Measurement Number Wire Pole Unit/m² 52 10KV Wire Pole 197 380V Wire Pole 171 380V Wooden Wire Pole 77 Transformer 16 Uncovered Channel m² 20,430 Bridge 8 Road m² 71,560 Rural Road m² 52,960 Tomb 1530 Underground Structure m 0 Gas Pipe m 42 Water Supply Pipe m 37,650 Drainage Pipe m 534 Communication Cable m 23,063 Power Cable m 9,050 Heat Supply Pipe m 4,441 Flower Bed m 2,505 Tap Water Pipe m 36,355 Vegetable Shed m² 1,760.36 Motor-pumped Well 205 Bush 3,966

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ADB LOAN EXTERNAL Monitoring Report– No. 1 7. Land Acquisition and House Demolition Compensation Standards and Payment Monitoring

7.1 Policies on Land Acquisition and House Demolition Compensation

56. Compensation for land acquisition and house demolition under LCR project will be carried out in strict compliance with Land Administrative Law of PRC, Implementation Methods for Land Administrative Law of PRC and Regulations on House Demolition and Resettlement that are promulgated by State and local governments, compensation agreements reached between MOR and the involved provinces, and the compensation standards defined in Resettlement Action Plan as mutually agreed by ADB and MOR. These laws and regulations, in essence, intend to ensure that APs can rapidly restore their work and living to level before the impacts, and restoration costs should be deemed as the evidence to justify the compensation standards.

Land and acquisition and house demolition for LCR project is carried out in compliance with the following laws and regulations:

i. Land Administration Law of PRC, August 1998; revised by People’s Congress on August 28, 2004 with an order entitled:”Decisions on Modification on PRC Land Administration Law”.

ii. Urban Land and Housing Property Administration Law of PRC, April 1994.

iii. The State Council’s Decision on Further Reform to Strictly Implement Land Administration, State Document No.28 (2004).

iv. Regulations on Implementation Methods for the Land Administration Law of PRC, December 1998.

v. Administrative Regulations for Urban Housing Demolition and Relocation of PRC, June 2001.

vi. Law of the People’s Republic of China on Administration of Urban Real Estate, April, 1994.

vii. Basic Farmland Protection Regulations, December 1998.

viii. Circular of the Central Committee of the Communist Party of China and the State Council Concerning Further Enhancing Land Administration and Earnestly Protecting Cultivated Land, 1997.

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ADB LOAN EXTERNAL Monitoring Report– No. 1 ix. Gansu Province Implementation Method for Land Administrative Law of PRC, March 2003

x. Property Law, 2007

xi. Sichuan Province Implementation Method for Land Administrative Law of PRC, December 1999

xii. Chongqing Municipality Implementation Method for Land Administrative Law of PRC, May 1999

xiii. Lanzhou City Implementation Method for Land Administrative Law of PRC

xiv. Dingxi City Implementation Method for Land Administrative Law of PRC

xv. Guangyuan City Implementation Method for Land Administrative Law of PRC

xvi. Guang’an City Implementation Method for Land Administrative Law of PRC

xvii. ADB’s Policies on Involuntary Resettlement, 1995.

xviii. ADB’s Policy on Aboriginals, 1998.

xix. Conference Summary on Accelerating LCR Construction, MOR Circular No. 150, 2005

xx. Conference Summary on Accelerating Initial Phase of LCR Project, MOR Circular No. 114, 2007

xxi. Notice on Compensation Standards for Land Acquisition and On-ground Attachments (within Dingxi City) for LCR by Gansu Provincial Administration of State Land and Resource, Circular No.1, 2009

xxii. Notice on Compensation Standards for Land Acquisition and On-ground Attachments (within Lanzhou City) for LCR by Gansu Provincial Administration of State Land and Resource, Circular No.2, 2009

xxiii. Notice on Compensation Standards for Land Acquisition and On-ground Attachments (within Longnan City) for LCR by Gansu Provincial Administration of State Land and Resource, Circular No.3, 2009

xxiv. Notice on Publicizing Compensation Standards for House Demolition within Gansu for LCR, Circular No. 574, 2008

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ADB LOAN EXTERNAL Monitoring Report– No. 1 xxv. Explanation on Compensation Standards for Land Acquisition and On-ground Attachments for LCR, Gansu Provincial Land Acquisition Office, December 2008.

xxvi. Notice on Publishing Methods for Land Acquisition, Compensation and Resettlement by Hanzhong City People’s Government, Document No.33, 2006.

xxvii. Notice on Publishing Compensation Methods for Land Acquisition, House Demolition and Attachment Removal within Ningqiang County for LCR by Ningqiang County People’s Government, Document No. 21, 2009.

xxviii. Guangyuan City’s Compensation Standards for On-ground Attachments on the Acquired Land and Methods for House Demolition and Resettlement, Document No.10, 2009.

xxix. Letter of Guangyuan City People’s Government on Average Annual Farmland Output Three Years before Land Acquisition, Document No. 105, 2008. ‘

xxx. Report on Cost Estimation for Land Acquisition within Guangyuan City for LCR by Key Construction Office of Guangyuan City People’s Government, Document No.12, 2009

xxxi. Letter of Nanchong City Development and Reform Committee on Reporting Compensation Standards for Land Acquisition, House Demolition and Resettlement within Nanchong City for LCR, Document No. 20, 2009.

xxxii. Compensation Implementation Methods for Land Acquisition, House Demolition and Resettlement with Guang’an City for LCR, Document No. 4, 2009.

xxxiii. Report by Guang’an City Development and Reform Committee on Initial Cost Estimation for Land Acquisition, House Demolition and Resettlement within Guang’an City for LCR, Document No. 261, 2009.

xxxiv. Notice on Adjusting Policies on Compensation for Land Acquisition by Chongqing City People’s Government, Document No. 45, 2008.

xxxv. Notice on Adjusting Policies on Compensation for Land Acquisition by Chongqing City Hechuan District People’s Government, Document No. 15, 2008.

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ADB LOAN EXTERNAL Monitoring Report– No. 1 7.1.1 Land Acquisition, House Demolition and Resettlement Compensation Standards Monitoring

7.1.1.1 Compensation Standards for Land Acquisition

57. Policies enacted by Gansu Provincial Administration of State Land and Resource for land acquisition for LCR in Lanzhou City, Dingxi City and Longnan City includes Notice on Compensation Standards for Land Acquisition and On-ground Attachments (within Dingxi City) for LCR by Gansu Provincial Administration of State Land and Resource, Circular No.1, 2009, Notice on Compensation Standards for Land Acquisition and On-ground Attachments (within Lanzhou City) for LCR by Gansu Provincial Administration of State Land and Resource, Circular No.2, 2009, and Notice on Compensation Standards for Land Acquisition and On-ground Attachments (within Longnan City) for LCR by Gansu Provincial Administration of State Land and Resource, Circular No.3, 2009. These three documents have defined that compensation plan for permanent land acquisition in Gansu Province includes compensation for land, allowance for resettlement and compensation for standing-crops or woods, with actual standards varying for each city. Please refer to Table 7-1 for details. Compensation for temporarily acquired land will be determined in accordance with type of land and length of tenure, and the temporarily acquired land shall be re-cultivated by the executing parties.

Table 7-1 Compensation Standards for Permanently Acquired Land, Gansu Province

County/City Compensation Standards for Permanent Land Acquisition (RMB10,000/mu) Vegetable Irrigated Dry Land Woodland Wasteland Land Land Lanzhou Planned 2.9-3.0 2.9-3.0 1.8-2.25 0.8-2.85 0.2-1.5 Actual 5.25-10.26 2.3-5.2 1.61-2.69 1.61-9.0 0.72-1.45 Dingxi Planned 1.8-3.38 1.8-3.38 1.8-2.27 0.8-3.3 0.2-1.5 Actual 4.5 2.24 1.33-2.24 1.19-8.5 0.60-1.19 Longnan Planned 2.9-3.45 1.8-3.0 1.8-1.97 0.8-3.3 0.2-1.5 Actual 6.01 3.59 2.15-2.69 2.15-11.5 0.97-1.94 Note

Table 7-2 Compensation Standards for Temporary Land Acquisition

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ADB LOAN EXTERNAL Monitoring Report– No. 1 County/City Compensation Standards for Temporary Land Acquisition (RMB10,000/mu.Year) Irrigated Dry Land Waste Land Land Lanzhou Planned 0.275 0.26-0.275 0.065 Actual 0.30-0.58 0.22 -0.30 0.08-0.16 Dingxi Planned 0.275 0.26-0.275 0.065 Actual 0.26-0.53 0.198 -0.26 0.072-0.14 Longnan Planned 0.275 0.26-0.275 0.065 Actual 0.31-0.52 0.23 -0.31 0.08-0.17

58. Policies enacted by Ningqiang County People’s Government, Shaanxi Province for land acquisition for LCR includes Notice on Publishing Methods for Land Acquisition, Compensation and Resettlement by Hanzhong City People’s Government, Document No. 33, 2006, and Notice on Publishing Compensation Methods for Land Acquisition, House Demolition and Attachment Removal within Ningqiang County for LCR by Ningqiang County People’s Government, Document No. 21, 2009. In accordance with such two documents, compensation plan for permanent land acquisition in Shaanxi Province include compensation for land, allowance for resettlement and compensation for standing crops or woods. Please refer to Table 7-3 for actual compensation standards. Compensation for temporarily acquired land will be determined in accordance with type of land and length of tenure, and the temporarily acquired land shall be re-cultivated by the executing parties. For actual compensation standards, please refer to Table 7-4.

Table 7-3 Compensation Standards for Permanently Acquired Land, Shaanxi Province

County/City Compensation Standards for Permanent Land Acquisition (RMB10,000/mu) Vegetable Irrigated Land Dry Land Woodland Wasteland Land Ning Qiang City Planned Actual 2.998 2.3788-2.998 1.778-2.378 0.59-0.84 0.096 Note

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ADB LOAN EXTERNAL Monitoring Report– No. 1 Table 7-4 Compensation Standards for Temporary Land Acquisition

County/City Compensation Standards for Temporary Land Acquisition (RMB10,000/mu.Year) Irrigated Land Dry Land Waste Land

Ningqiang Planned 0.275 0.26-0.275 0.065 County Actual 0.35-0.40 0.35 -

59. Policies enacted by Sichuan Province for land acquisition for LCR in Guangyuan City, Nanchong City and Guang’an City include Guangyuan City’s Compensation Standards for On-ground Attachments on the Acquired Land and Methods for House Demolition and Resettlement, Document No.10, 2009, Report on Cost Estimation for Land Acquisition within Guangyuan City for LCR by Key Construction Office of Guangyuan City People’s Government, Document No.12, 2009, Compensation Implementation Methods for Land Acquisition, House Demolition and Resettlement with Guang’an City for LCR, Document No. 4, 2009, and Report by Guang’an City Development and Reform Committee on Initial Cost Estimation for Land Acquisition, House Demolition and Resettlement within Guang’an City for LCR, Document No. 261, 2009. All these documents have only proposed the initial scheme but not the standards in detail. Except that Nanchong City has defined standards for compensation for on-ground attachments and house demolition, relevant standards of the rest cities needs to be further detailed.

Table 7-5 Compensation Standards for Permanently Acquired Land, Sichuan Province

County/City Compensation Standards for Permanent Land Acquisition (RMB10,000/mu) Vegetable Land Irrigated Land Dry Land Woodland Wasteland

Guangyuan Planned 2.2 2.2 1.27 2.7 0.66 Actual Nanchong Planned 2.74 2.74 1.8 2.24-2.8 1.02-1.3 Actual Guang’an Planned 3.0 3.0 2.0 2.5-3.0 0.7 Actual Note

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ADB LOAN EXTERNAL Monitoring Report– No. 1 Table 7-6 Compensation Standards for Temporary Land Acquisition

County/City Compensation Standards for Temporary Land Acquisition (RMB10,000/mu.Year) Irrigated Dry Land Waste Land Land Guang Planned 0.275 0.26-0.275 0.065 yuan Actual Nan Planned 0.275 0.26-0.275 0.065 chong Actual Guang’ Planned 0.275 0.26-0.275 0.065 an Actual

60. Policies enacted by Chongqing Municipality for land acquisition for LCR in Hechuan District include Notice on Adjusting Policies on Compensation for Land Acquisition by Chongqing City People’s Government, Document No. 45, 2008 and Notice on Adjusting Policies on Compensation for Land Acquisition by Chongqing City Hechuan District People’s Government, Document No. 15, 2008. In accordance with such two documents, compensation plan for permanent land acquisition in Shaanxi Province include compensation for land, allowance for resettlement and compensation for standing crops or woods. Please refer to Table 7-8 for actual compensation standards. Compensation for temporarily acquired land will be determined in accordance with type of land and length of tenure, and usually as the tenure of temporarily acquired land will not exceed one year, the compensation for temporarily acquired all kinds of land will include compensation for standing-crops or woods and land use fees, with actual compensation standards shown as Table 7-8. The temporarily acquired land shall be re-cultivated by the executing parties.

Table 7-7 Compensation Standards for Permanent Land Acquisition, Chongqing Municipality

County/ Compensation Standards for Permanent Land Acquisition City (RMB10,000/mu) Vegetable Irrigated Land Dry Land Woodland Wasteland Land Hechuan Planned 3.0 2.0-3.0 2.0 2.4-3.0 1.6 Actual 4.0-4.1 4.0-4.1 4.0-4.1 4.0-4.1 4.0-4.1 Note

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ADB LOAN EXTERNAL Monitoring Report– No. 1 Table 7-8 Compensation Standards for Temporary Land Acquisition, Chongqing Municipality

County Compensation Standards for Temporary Land Acquisition (RMB10,000/mu.Year) /City Irrigated Land Dry Land Waste Land

Hechuan Planned 0.275 0.26-0.275 0.065

Actual 0.29-0.40 0.26-0.33 0.24-0.31

7.1.1.2 Compensation Standards for House Demolition and Relocation

61. As of this phase of external monitoring evolution, compensation standards for land acquisition and house demolition have been enacted by local governments along LCR, but there is difference among them, and local governments have also adopted various expedient measures.

62. Policy on house demolition and relocation for LCR in Lanzhou City, Dingxi City and Longnan City that is promulgated by Guansu Provincial Administration of State Land and Resource includes Notice on Publicizing Compensation Standards for House Demolition within Gansu for LCR, Circular No. 574, 2008, which has defined common compensation standards for all house demolition and relocation activities in each affected city of Gansu. Please refer to Table 7-9 for details.

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ADB LOAN EXTERNAL Monitoring Report– No. 1

Table 7-9 Compensation Standards for House Demolition and Attachments, Gansu Province

County/ Compensation Standards for House Demolition Attachment Others City (RMB Yuan/m2) Brick Brick-Wo Earth-Wood Simplified Wall Well Stove Cement Tomb Reloca Transition od RMB (RMB RMB Floor RMB each tion Cost /m each) each Cost RMB/m2 RMB/ RMB/House House hold/Month hold

Lanzhou Lanzhou Planned 350 300 250 - - - 2000 650 534-1310 299-405 145-290 96 2000-80000 800-1200 Actual

Dingxi Planned 380 330 280 - - - 328 160 534-1310 299-405 145-290 96 2000-80000 800-1200 Actual

Longnan Longnan Planned 350 300 275 - - 1000 200 534-1310 299-405 145-290 96 2000-80000 800-1200 Actual

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ADB LOAN EXTERNAL Monitoring Report– No. 1

63. Policy enacted by Ningqiang County People’s Government for house demolition for LCR includes Notice on Publishing Methods for Land Acquisition, Compensation and Resettlement by Hanzhong City People’s Government, Document No.33, 2006, and according to this document, actual compensation standards for house demolition in Shaanxi is shown as Table 7-10.

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Table 7-10 Compensation Standards for House Demolition and Attachment Removal, Shaanxi Province

County Compensation Standards for House Demolition Attachment Others /City (RMB Yuan/m2) Brick Brick Earth Simplified Wall Well Stove Cement Tomb Relocati Transition -Wood -Brick RMB (RMB RMB each Floor RMB on Cost Cost /m each) each RMB/Hous RMB/m2 ehold RMB/Househ old/Month NIngqiang Planned 345-385 280-320 160-200 80-100 5-25 300-10000 100-180 2-20 150-3 - 200 Actual 00

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ADB LOAN EXTERNAL Monitoring Report– No. 1 64. Competent governmental authorities of Sichuan have issued policies on house demolition in Guangyuan City and Guang’an City for LCR, including Guangyuan City’s Compensation Standards for On-ground Attachments on the Acquired Land and Methods for House Demolition and Resettlement, Document No.10, 2009 and Compensation Implementation Methods for Land Acquisition, House Demolition and Resettlement with Guang’an City for LCR, Document No. 4, 2009, but policies of Nanchong City is unavailable, and such two documents indicate that actual compensation standards in Sichuan for house demolition vary by city. Please refer to Table 7-11 for details.

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ADB LOAN EXTERNAL Monitoring Report– No. 1

Table 7-11 Compensation Standards for House Demolition and Attachment Removal, Sichuan

County/ Compensation Standards for House Demolition Attachment Others City (RMB Yuan/m2) Brick Brick Earth Simplified Wall Well Stove Cemen Tomb Relocation Transition -Wood -Brick RMB (RMB RMB t Floor RMB each Cost Cost /m each) each RMB/Hous RMB/ ehold RMB/House m2 hold/Month Guangyuan Planned 300 265 245 500 260 Actual 480-750 250-460 230-400 50-150 15-65 400-1700 340-1100 25-50 1000-2000 - 400 Nanchong Planned 336 295 275 - 1320 90 Actual Guang’an Planned 400 350 300 - 500 500 Actual 290-580 260-350 260-290 170-190 4-15 100-300 60 200-300 300-850

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ADB LOAN EXTERNAL Monitoring Report– No. 1

65. Competent governmental authorities of Chongqing Municipality have issued policies on house demolition in Hechuan District, including Notice on Adjusting Policies on Compensation for Land Acquisition by Chongqing City Hechuan District People’s Government, Document No. 15, 2008 and Notice on Adjusting Policies on Compensation for Land Acquisition by Chongqing City People’s Government, Document No. 45, 2008, and according to such two documents, actual compensation standards of Chongqing City are shown as Table 7-12.

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ADB LOAN EXTERNAL Monitoring Report– No. 1

Table 7-12 Compensation Standards for House Demolition and Attachment Removal, Chongqing Municipality

Compensation Standards for House Demolition Attachment Others County/City (RMB Yuan/m2) Brick Brick Earth Simpli Wall Well Stove Cem Tom Reloc Transiti -Wood -Brick fied RM (RMB RMB each ent b ation on Cost B each) Floor RM Cost /m B RMB/ RMB/ RM each House Househ B/m hold old/Mo 2 nth Hechuan Planned 400 350 300 - 200 1000 150 Actual 220-441 165-395 140-371 60 50 500-2000 60-100 200 300-600

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ADB LOAN EXTERNAL Monitoring Report– No. 1 7.1.2 Payment for Compensation for Land Acquisition and House Demolition

66. As land acquisition and house demolition for LCR progresses and funds for compensation are being allocated, in total direct payment of RMB4, 019.68 million has been made for land acquisition and house demolition, of which Gansu Province RMB1, 826.54 million, Shaanxi Province RMB4.70 million, Sichuan Province RMB1, 908.50 million and Chongqing Municipality RMB279.93 million. Please refer to Table 7-13 for details.

Table 7-13 Paid Compensation for Land Acquisition and House Demolition for LCR

Serial Accumulatively Paid District/County Item No. (RMB Yuan) Compensation for Chengguan District of Lanzhou Land Acquisition 1 City and Other Places in Gansu 1,074,240,551.00 and House Province Demolition Compensation for Administration Land Acquisition 2 of State Land and Resource, 752,301,875.00 and House Lanzhou City Demolition 3 Gansu Sub-total 1,826,542,426.00 Compensation for Land Acquisition 4 Ningqiang County 4,700,000.00 and House Demolition 5 Shaanxi Sub-total 4,700,000.00 Compensation for Land Acquisition 6 Guangyuan City 515,491,050.00 and House Demolition Compensation for Land Acquisition 7 Nanchong City 779,293,700.00 and House Demolition Compensation for 8 Guang’an City 613,723,260.00 Land Acquisition

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ADB LOAN EXTERNAL Monitoring Report– No. 1 and House Demolition 9 Sichuan Sub-total 1,908,508,010.00 Shaping District, Chongqing Compensation for 10 279,930,000.00 Municipality Land Acquisition Chongqing Municipality 11 279,930,000.00 Sub-total 12 Total 4,019,680,436.00

7.1.2.1 Gansu Province

67. For details about paid compensation for land acquisition and house demolition for LCR in Gansu Province, please refer to Table 7-14.

Table 7-14 Paid Compensation for Land Acquisition and House Demolition for LCR in Gansu Province

Serial Accumulatively Paid District/County Item No. (RMB Yuan) Compensation for Chengguan District of Lanzhou Land Acquisition 1 City and Other Places in Gansu 1,074,240,551.00 and House Province Demolition Compensation for Anning District Administration Land Acquisition 2 of State Land and Resource, 752,301,875.00 and House Lanzhou City Demolition 3 Gansu Total 1,826,542,426.00

According to Table 7-14, RMB1, 826.54 million has been directly paid to compensate land acquisition and house demolition in Gansu, with RMB1, 074.24 million to Chengguan District of Lanzhou City and other places in Gansu, and RMB752.30 million to Anding District of Lanzhou City.

7.1.2.2 Shaanxi Province

68. RMB4.70 million has been allocated by Shaanxi Province to compensate land acquisition and

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ADB LOAN EXTERNAL Monitoring Report– No. 1 house demolition (please refer to Table 7-13 for details), and due to the small scale of land acquisition and house demolition in this province, the contractors that are executing the project within Shaanxi have made advances to APs, so the actual compensation has not been made.

7.1.2.3 Sichuan Province

69. In Sichuan Province, RMB190, 850 million has been paid to APs in Guangyuan City, Nanchong City and Guang’an City for land acquisition and house demolition, with Guangyuan RMB515.49 million, Longnan City RMB779.29 million, and Guang’an City 6.1372 million. Please refer to Table 7-15 for details. Data about allocated compensation is still in collection process.

Table 7-15 Paid Compensation for Land Acquisition and House Demolition for LCR in Sichuan Province

Serial Accumulatively Paid District/County Item No. (RMB Yuan) Compensation for Land Acquisition and 1 Guangyuan City 515,491,050.00 House Demolition Compensation for Land Acquisition and 2 Nanchong City 779,293,700.00 House Demolition Compensation for Land Acquisition and 3 Guang’an City 613,723,260.00 House Demolition 4 Sichuan Total 1,908,508,010.00

7.1.2.4 Chongqing Municipality

70. Table 7-13 shows the compensation paid for land acquisition and house demolition for LCR in Chongqing Municipality, and according to this table, RMB279.93 million has been paid directly to APs.

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ADB LOAN EXTERNAL Monitoring Report– No. 1 8. AP Resettlement Results Monitoring

8.1 AP Resettlement

71. Resettlement authorities offers multiple resettlement options to APs of land acquisition, including reserved land resettlement, cash compensation to APs and joining social security and employment system, and which option is to be used will be decided local villagers. The external monitoring and evaluation teams find in on-site investigation that among these options, cash compensation is used most extensively, and a few of affected villages choose reserved land settlement.

72. Specifically, in Gansu except a few of affected villages that choose reserved land settlement, most villages have made direct cash compensation to APs. In Shaanxi, all compensation is made in cash. In Sichuan, most compensation is made in cash. And in Chongqing, all APs are compensated with cash.

73. In general, compensation policies and standards may vary by county/city/province. As China is extending social security coverage to landless rural residents, the four provinces/municipality have highly profiled the option of joining social security and employment system to affected peasants. The teams acknowledge on site that the expense on purchasing social security falls between RMB12,000 to RMB22,000 per capita, which will be shared by county, village and AP by ratio of 3:2:5. In addition, Sichuan provincial government has enacted a policy to offer security to landless peasants, which stipulates that for each mu of acquired land, the land user shall make extra compensation equivalent to five times of annual average output of the land on the basis of currently enforced compensation standard, and such extra compensation shall be paid into a special fiscal account for the sake of social security of landless peasants and be used to reimburse the social security expenses. To make social security available to peasants who become landless for LCR, Office of Sichuan Province People’s Government promulgated Notice on Further Social Security Coverage to Peasants Urbanized for Land Acquisition Reason (Document No.15) on Apr 11th, 2008, and Office of Chongqing Municipality People’s Government promulgated Experimental Method for Providing Basic Pension Insurance to Peasants Urbanized for Land Acquisition Reason Before 2007 as well as Experimental Method for Providing Basic Pension Insurance to Peasants for Land Acquisition Reason After Jan 1st, 2008. This work is in progress.

74. Main contents of the Sichuan province document include:

xxxvi. Adjust contribution ratio and base appropriately in proper way and define time of approval 41 CIECC OVERSEAS CONSULTING CO.,LTD

ADB LOAN EXTERNAL Monitoring Report– No. 1 After the promulgation of the Notice, pension contribution ratio for peasants urbanized for land acquisition reason will be adjusted to be 20%, within which share of individual shall be no more than 8%. Contribution base will be decided by local city/prefecture people’s government by referencing the contribution base of urban individual social security participants at the time of approving land acquisition. Time of approving land acquisition will be defined as time of approving the resettlement and compensation scheme for land acquisition. The expenses for joining basic pension insurance shall be paid fully at one time.

xxxvii. Take integrated measures to extend pension insurance coverage to peasants urbanized for land acquisition reason before the Notice

For those peasants urbanized for land acquisition reason before the Notice who are not covered by basic pension insurance, they may voluntarily join the basic pension insurance by applying to social security authority at the place where their household is registered.

To such type of urbanized peasants at age older than legally eligible retirement age, they may use 60% of the annual average salary of on-the-job staff in the province as base and pay basic pension insurance premium for 15 years at one time, at contribution ratio of 20%, and can be paid with pension from the next month. For those who are eligible to receive subsistence allowance, with evidencing materials provided by civil affair authority higher than county level, they may apply to sign an agreement with social security authority to pay the premium balance in allotments in the ensuing two years, provided that they have paid initial basic pension insurance premium no smaller than RMB20, 000. Amount equal to 8% of the 15-year total premium base will be deducted from the initial payment and credited to individual pension insurance account, with the rest being allocated to the pooling fund, and basic pension will be paid without deducting the contribution years. To such type of urbanized peasants at age below the retirement age, they may make full payment of basic pension insurance premium at one time in accordance with the various age brackets as defined by the Notice.

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ADB LOAN EXTERNAL Monitoring Report– No. 1 8.2 House Demolition AP Resettlement

75. Resettlement methods for house demolition APs along LCR are decided by nature of impacts. For rural house demolition and relocation, compensation standards will be formulated according to promulgated policies and standards for this purpose, with 100% compensation being made at house demolition or 50% to 60% of compensation being made in advance, and the rest being made after demolition and relocation. Compensation usually will be settled through bank transfer, where the resettlement authority will notify bank of transferring cash from special account to accounts of APs by following an AP name list. After APs receive compensation, they have two ways to rebuild housing: 1) for villages where dense demolition is made, the resettlement authority will acquire land for resettlement, level the land, make the land accessible to water, gas and road and allocate on FOC basis to APs to rebuild housing, or 2) the resettlement authority rebuild housing on its own and then allocate the new housing to APs. APs will receive assistance including allowance for house demolition and relocation and allowance for renting transitional housing, and those APs who timely demolish and relocate house in line with the general arrangement may receive extra incentives.

76. Usually the methods for house demolition and relocation may vary by place, and as of this phase of external monitoring investigation and evaluation, the progress in house demolition and relocation differs from place to place.

77. Gansu adopts both distributed and concentrated modes to resettle APs.

78. Shaanxi mainly uses distributed resettlement.

79. Sichuan combines distributed mode with concentrated mode to resettle APs. When effecting payment to compensate land acquisition and house demolition, in case that there is province-level official document that defines the compensation items, compensation will be paid as per standards defined in the document, and in case of absence of such document, compensation will be paid in accordance with the agreed conference summary by all stakeholders. The allocation and payment will follow such a procedure in which the county government needs to prepare a report on the scale of land acquisition and house demolition at first place, and this report will then be verified and signed by LYRC, executing parties, designing parties, supervising parties, real estate developers and the development and reform committee before the real estate developer receive the funds. Then the funds will be paid to APs by following such procedure: for compensation for house demolition and relocation, real estate developer, county finance bureau or county-level

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ADB LOAN EXTERNAL Monitoring Report– No. 1 coordination team, village and household; for compensation for land acquisition, real estate developer, provincial administration of state land and resource, county administration of state land and resource, village and household, and compensation for woods, real estate developer, provincial administration of forestry, county administration of forestry, village and household.

80. Chongqing Municipality adopts a method that combines distributed with concentrated settlement.

8.3 Social and Economic Impacts of LCR Project Execution

81. Though LCR project execution has acquired large pieces of land along the line and consequently inevitably affects work and living of local communities, particularly rural communities, through close coordination between LYRC and resettlement authorities along the line, faithful fulfillment of the commitments to resettlement plan and adoption of various methods to convert negative social impacts into positive ones, the project execution has received support from governments at all levels and APs along the line, thus minimizing negative impacts. The Institution will describe this in detail in social development action plan monitoring report, and only brief it in this report.

82. Through summarizing and analyzing, the external monitoring evaluation teams find that two trends of positive impacts are taking form and creating benign influence to communities along LCR. Firstly, when LYRC requires that when executing parties plan service roads and bridges that are required by project construction and infrastructure like power supply cable and water supply pipeline that can facilitate project construction, they need to consult with local county/district and village/township communities to obtain favorable external cooperative and working conditions for project construction. At current stage when the project approaches completion, especially in Gansu and other sections where the progress is the fastest, in addition to the temporarily acquired land that is to be re-cultivated by the executing parties according to prior agreement, those service roads and service bridges that may benefit future development of local communities may be kept after consultation with executing parties, so as to reduce infrastructure investment in local community development, which may also includes some temporary buildings used by executing parties and associated water supply pipeline and power supply cable. This arrangement in fact leaves lots of infrastructure to local communities along LCR that can be devoted to community development, and hence reduce the investment of local communities in these areas and eventually the burden of local residents. Secondly, large pieces of land outside of the red line has been temporarily acquired along the railway for purpose of project construction, of which some land may have difficulty in re-cultivating, such as precast beam field where thick foundation is made, and discarded soil and dreg fields, particularly those for tunnel construction. Such land is 44 CIECC OVERSEAS CONSULTING CO.,LTD

ADB LOAN EXTERNAL Monitoring Report– No. 1 compensated by LYRC as permanently acquired land, but is still in terms of nature as temporarily acquired land. Some precast beam fields have been used by local governments as construction sites to attract investors and developers and thus become important local leading projects.

83. Up to date, total consumed labor by contractors for LCR project construction has reached 711,000 person/days, including labor of hired local villagers as 132,000 person/days (e.g. 18.6% of total consumed labor), labor of hired poverty-stricken local villagers as 100,700 person/days (e.g. 81% of total consumed local labor), and labor of hired women as 10,000 person/days (e.g. 7.5% of total consumed local labor). Hired poverty-stricken villagers will receive daily wages of RMB80 to RMB120 per person for their labor, and from this it can be derived that poverty-stricken households can at least receive income of RMB11.989 million by laboring for the project, and hired women at least RMB969,000. There are 96 service providers that provide all kinds of services to project construction. The project totally has spent RMB2.53 billion on purchasing construction materials, of which river sand RMB260 million, cement RMB570 million, stone RMB250 million, steel RMB690 million and other construction materials RMB750 million. The working staff of the contractors also spends RMB76.55 million locally on livings. Among the purchased construction materials, materials worth RMB89.72 million are provided by poverty-stricken households, and poverty-stricken households have also provided living services and consumables worth RMB15.61 million to working staff of the contractors.

8.4 Typical Interviews Conducted by External Monitoring Evaluation Teams

8.4.1 Gansu Province

1) Mr. Liu Zhongren, Vice GM of LYRC

84. LCR project is contracted to 16 executing parties and the execution is already in full progress. As of end of December 2009, foundation is completed by 8%, bridges 7% and tunnels 10%, with 3 key bridges and 27 key tunnels coming into construction. Except for Chongqing Municipality where land acquisition and house demolition is accomplished by 15%, land acquisition and house demolition has been accomplished by 70% at all other places. Re-cultivation of temporarily acquired land has not started. A kick-off meeting was held on Sep 26th, 2008 to initiate the project, and construction of key sub-project—West Qinling Tunnel started in October 2009. Section between Xiaguan Ying and Guangyuan kicked off in March 2009, and section between Guangyuan and Chongqing in July 2009, with all executing and supervising sections starting operations in September. In 2009, main work for LCR project was on-site preparations prior to

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ADB LOAN EXTERNAL Monitoring Report– No. 1 construction, obtainment of approvals for setting up discarded soil and dreg fields and construction of some foundation, tunnels and bridges.

2) Mr. Zhu Diping, Vice Director of Administration of State Land and Resource, Min County, Gansu Province (15825826319) Wang Shixian, Director of Development and Reform Committee (13993267219)

85. LCR spans 42.2km in Min County, passing five townships/towns as Meichuan, Chabu, Minyang, Shigou and Qinxu, where 5 tunnels and 8 super large bridges are to be built. Before the project kicks off, the senior officials of local county government have highly profiled importance of LCR and called for support of local residents to project construction. Huangqiang, vice county major in charge of infrastructure, led a team consisted of officials from administration of state land and resource, transportation authority, development and reform committee and China Mobile to consult with the project developers and assist working staff of China Railway 7th Bureau sent in advance to enter the construction site by providing facilities of communication and transportation. They also assisted land acquisition and house demolition for LCR by promoting significance and better-off opportunities brought about by LCR among local villagers village by village and township by township, with collaboration from local township officials. Some land under dispute is allowed to be used before acquisition, through on-site coordination by officials at township and county levels. The county CPC and government held several special meetings to discuss how to provide support and collaboration to LCR project, and formulated a package of policies and measures to support and serve LCR project. In result, working staff from China Railway 7th Bureau felt the strong attention and concrete support from the county CPC and government. LCR project construction proceeds smoothly in this area, with rapid entry into site, working staff settlement and construction commencement. Land acquisition and house demolition is almost completed, affecting 250 households in 4 townships/towns. In the meantime, resettlement is well implemented, new houses for resettled APs are under construction and various compensations have been paid. Cornered land after acquisition is pending for further solution. There is only one concentrated resettlement spot—Zhongbao Village, Qinxu Township, in which reconstruction of dilapidated housing will be combined with newly-built housing and the rest will be resettled in distributed way.

3) Mr. Cuiyong, Vice Director of Weiyuan Administration of State Land and Resource, Gansu

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ADB LOAN EXTERNAL Monitoring Report– No. 1 Province (13919686626)

86. LCR passes 5 townships/towns in Weiyuan County, including Qinqi, Beizai, Qingyuan, Qiuyu and Lianfeng, 19 villages and 1 state-owned forest farm (Lianfeng Forest Farm), with planned land occupation as 95 hectares. To smooth project execution, a dedicated LCR construction coordination leading team was formed by the county government, and a series of special meetings were held to provide collaboration to executing parties (China Railway 16th Bureau and China Railway 19th Bureau), concerning headquarters set-up, temporary land acquisition and project promotion. Particularly in the area of land acquisition and house demolition, all involved townships/towns and organizations have arranged dedicated officials and working staff to oversee land acquisition, house demolition and dispute resolution through the project. A notice was made public by the end of last year to prevent planting, seeding, repair and construction in rush from occurring. To acquire the 175.5 mu needed by the 9th Project Construction Department of China Railway 16th Bureau for working staff settlement and construction sites, even before the permanent land acquisition, the CPC and government of Qinqi Township convinced 7 households to relocate 21 tombs in the Red Line zone.

4) Mr. Huangqiang , Vice County Major, Zhang County, Gansu Province (13919719666)

87. With investment of approximant RMB320 million, LCR spans 36km in Zhang County, passing 3 townships/towns including Yi Huqiao, Da Chaotan and Jinzhong, and a C Class passenger and freight station will be built in Jiudian Village, Da Chaotan Township. Long before the start-up of the project, the county government carried out strenuous promotion of LCR, calling for local residents to provide support and assistance to LCR construction. After working staff of China Railway Bureaus entered into sites, the county government formed a dedicated office to provide support to LCR construction that would oversee land acquisition and house demolition for railway construction and design. Liu Changqing, vice county major led a team consisted of staff from administration of state land and resource, police and transpiration agency, as well as township/village level officials to push forward land acquisition and house demolition, by promoting the significance and development opportunities among local villagers village by village and township by township. In Tiegou village, Yi Huqiao Township, a service road had to pass cemetery of local villagers’ ancestors, and with the convincing of village officials, 16 households of villagers made decision to relocate these tombs to support the project. Up to date the project is being smoothly implemented in Dingxi City.

5) Mr. Yang Quanshe (0939-6121300), Director and Ms. Zhouping (13993993397), Vice

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ADB LOAN EXTERNAL Monitoring Report– No. 1 Director of Dangchang County Administration of State Land and Resource, Gansu Province

88. In Dangchang County LCR extends by 91km and affects 12 townships including Awu, Ha Dapu, Lichuan, JIahe, Jiangtai, Chela, Xin Chengzi, Lin JIangpu, Gan Jiangtou, Guanting, Lianghe Kou and Shawan. House demolition concentrates in two towns as Shawan and Ha Dapu and one township as Liang Hekou. Since the commencement of the project, railway line within Dachang County has been subdivided into 49 work sections, and up to date construction of 14 tunnels, including Ha Dapu Tunnel, has already started, and some of the 13 large and medium bridges are also being under construction with smooth progress. 545 households or 90% of the planned 606 households and over 400 tombs have been resettled and relocated, including 100 households in Ha Dapu. More than 20 households in Shixia Village, Shawan Town and over 100 households in Shaba Village and Luchuan Village have been resettled in both distributed and concentrated modes to acquire land of 1,582.52 mu, of which 553.48 mu is used for living camp, machinery and equipment parking lot, materials piling field and service roads, 891.57 mu for dreg field, and 140.47 mu for permanent land acquisition within the Red Line.

6) Ji Xiangsheng, Vice Director of Wudu District Administration of State Land and Resource, Longnan City, Gansu Province (13993950738)

89. LCR invests RMB18 billion within Wudu District to build 128km line, 84% of which is in form of bridges and tunnels, including key project 28.2km-long West Qinling Tunnel, with 720 mu of land acquired, 12 mu of nurseries relocated, 31,200 economic trees expropriated, 24 tombs excavated and relocated and 28 households resettled.

7) Wang Xiangdong, Maoyao Village, Qiuyu Township, Weiyuan County (15101808554)

90. At age of 40 years and with high school education, Wang is a male peasant of Han nationality who temporarily performs non-farming work in slack season. He has a family consisted of 5 members, including mother, wife (elementary school education, Han nationality, performs non-farming work in slack season), elderly son (16 years old, junior middle school student) and younger son (elementary school student). This household makes annual income of RMB20, 000, including farming income RMB2, 000 and non-farming income RMB18, 000, and total annual living expenditure is RMB11, 200. 2.9 mu of irrigated land is acquired and 90m2 of house is demolished. This household owns one washing machine, one TV set and one motorcycle. The whole family has good health and up-medium living standards in the village, and they believe that land

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ADB LOAN EXTERNAL Monitoring Report– No. 1 acquisition has seriously affected their living standards.

8) Wang Shunxiang, Maoyao Village, Qiuyu Township, Weiyuan County

91. Being 37 years old, handicapped and an elementary school graduate, Wang is a male peasant who has a family consisted of two members, including his illiterate mother at age of 71. They still have 3 mu of farming land after land acquisition. The demolished house is of earth-wood structure, covering 25m2, and the housing land occupies 150m2. Their living standards belong to medium-low end in the village.

9) Wang Yingcai, He Dapu Town, Dangchang County (13919553214)

92.At age of 42 years and with junior middle school education, Wang is a male peasant of Han nationality who continuously performs non-farming work outside of hometown. His family is consisted of 5 members, including wife (40 years old, Han nationality and peasant), two daughters (at the age of 20, the elderly is a high school graduate who performs non-farming work outside of hometown and at the age of 18, the younger is high school student) and a son (16 years old, a junior middle school student). No land is acquired, and house of 118m2 is demolished. They plant corn and wheat to realize annual income of RMB2, 000 to 3,000, and non-farming work to realize annual income of RMB8, 000 to 10,000. They have a TV set and their living standards belong to the low end in the village.

10) Li Zhaozhen, Shigou Village, Shigou Tonwship, Min County (0932-7959500)

93.At age of 40 years and with high school education, Li is a male peasant of Han nationality. His family has 4 members including wife (38 years old, Han nationality, junior middle school education, and peasant), daughter (16 years old, junior middle school student), son (7 years old, elementary school student) and himself. Demolished house consisted of brick building 140m2 and earth-wood building 100m2. They received compensation for house demolition RMB112, 400, and now have move into new housing with better living conditions.

11)Zhao Shejun, Guoping Village, Wudu District, Longnan City (13399399930)

94.At age of 38 years and with junior middle school education, Zhao is a male peasant of Han nationality, His family has 4 members, including wife (38 years old, junior middle school education and peasant), two sons (the elderly 13 years old, junior highs school student, and the younger 9 years old, elementary school student). Their living standards belong to up-medium end in the village. The demolished house includes brick building 300m2 and earth-wood building 50m2, and site for new housing is pending for selection.

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ADB LOAN EXTERNAL Monitoring Report– No. 1 12)Yuan Guangwu, Xin Yaopo, Gaoya Town, Yuzhong County

95.At age of 40 years and with junior middle school education, Yuan is a male peasant of Han nationality who continuously work outside of hometown. His family has 6 members, including father (63 years old), mother (62 years old), wife (36 years old, Han nationality, junior middle school education and continuously performs non-farming work outside of hometown), son (16 years old, junior middle school student) and daughter 6 years old) and himself. No land is acquired and earth-wood house of 110m2 is demolished. Their annual income is RMB16, 000, and expenditure RMB15, 000, with living standards at the lower-end in the village.

8.4.2 Shaanxi Province

1) Mr. Li Hanwen, Land Consolidation and Acquisition Office, Ningqiang County, Shaanxi Province

96.Under administration of Ningqiang County, there are 32 townships/towns (11 towns and 21 townships), 366 administrative villages and 2,459 villager teams. Of the total covered land of 3,246.80 km2 by the county, cultivated land is 440,000 mu, with irrigated land 76,000 mu and cultivated land per capita 1.48 mu. The county has total population of 339,600, which is mainly constituted by Han people, as well as 11 ethnic minority groups including Muslim, Manchurian, Zhuang and Bai, etc. The county seat town occupies 50km2 of land, of which planned area is 12km2 and constructed area 5.2km2, and in-town total population is 50,000.

2) Zhao Yongjun, Ningqiang Administration of State Land and Resource (131963807)

97. Compensation standards for land acquisition for LCR include RMB28, 000 for each mu of irrigated land, RMB22, 000 for each mu of dry-land, RMB16, 000 for each mu of sloping land and RMB4, 400 for each mu of forest land. APs will be resettled in combination of post-earthquake reconstruction project, and brought under the coverage of subsistence allowance system with which each AP can be paid monthly with subsistence allowance of RMB55.

8.4.3 Sichuan Province

1) Zhang Zerong, Director of Chaotian District Railway Construction Office, Guangyuan City (13568369598)

98.Chaotian section of LCR spans 32.13km from CK461+360 to CK493+490, which needs to acquire approximately 26.0 hectares of land, including cultivated land 19.18 hectare and other type of land 50 CIECC OVERSEAS CONSULTING CO.,LTD

ADB LOAN EXTERNAL Monitoring Report– No. 1 6.8266 hectares, and affects 12 villages in 4 townships/towns as Luo Quanyan Village of Pujia Township, Wenxi Village, Yuanxi Village, Sanlong Village of Dongxi He Township, Chenjia Village, Jinhua Village of Huashi Township, Huashi Village, Shaolou Village, Yuanxi Village of Yangmu Town, Wenbi Village, Jinding Village and Jinbi Village. There is existing dispute regarding restoration of roads and water supply that requires further resolution. Compensation will be made by following the process and standards defined in official documents of provincial government, and in case that such document is absent, compensation can be made according to the conference summary agreed by all stakeholders. To allocate compensation for land acquisition, the county government needs to submit a report on the scale of land acquisition and house demolition, and allocation will be made after this report is confirmed and signed by LYRC, executing parties, designing parties, supervising parties and the administration of state land and resource. The funds and its usage will be strictly supervised by dedicated person, booking and account to avoid abuse of any type, and no entity or individual is allowed to withhold, seize or appropriate such funds for any reason. The procedure to effect payment is as following: for compensation for house demolition, county finance administration or coordination team, village and household; for compensation for land acquisition, provincial administration of state land and resource, village and household; and for compensation for woods, real estate developer, provincial forestry administration, village and household.

2) Director Wang, Nanchong City Railway Construction Office (13508093009)

99.With total investment of nearly RMB9.5 billion, LCR spans approximately 155km in Nanchong City, and 4 stations as North Nanchong, Nanchong, West Nanchong and South Nanchong are to be built. Of the affected 5 counties (districts), compensation amounting to RMB19.8 billion for land acquisition and house demolition has been made in advance. Modified scheme for line layout in urban Nanchong has been submitted for approval by MOR, tender invitation for Sichuan Section is already circulated, and executing parties are expected to enter into sites in July. Nanchong City is directly administrating Shunqing District, Gaoping District, JIaling District, Nanbu County, , , Peng’an County and Yingshan County, and Langzhong City on behalf of the provincial government, altogether including 180 towns and 302 townships. As of end of 2008, total population of Nanchong has reached 7,494,938, including urban population 860,360 of which 3,922,774 are male (52.34% of total population) and 3572164 female (47.66% of total). Of such population, that of the three districts directly under administration of the city government is 1,924,945, with urban population 863,600. Nanbu County has the largest population of 1,290,399, and it is followed by Yilong, 1,101,273, Yingshan, 938,406, Langzhong, 877,349, Peng’an 710,741,

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ADB LOAN EXTERNAL Monitoring Report– No. 1 Jialing, 697,112, Xichong, 651,825, Shunqing 639,555 and Gaoping, 588,278.

3) Wang Daode, Guang’an City Railway Construction Office (13908284889)

100..No.13 bid section of LCR, as being constructed by China Railway 1st Bureau, passes Nanchong, Guang’an and . Sub-section in Guang’an kicked off on Sep 17th, 2009, and spanned 18.3km to affect Guangmen, Zhaoshan, Chuanshi and Huahu, involving 21 villages and 76 villager teams, permanently acquiring land of 1,273.6 mu, of which 290.5 mu is used prior to acquisition, temporarily acquiring land of 518.6 mu and demolishing 91,019m2 of house. After house of Long zhijian, villager of 5th Team, Qincai Village was demolished, the village officials offered temporary residence to their family through coordination, and provided a simple shed to construction site of their new building and a private power cable to deliver electricity. Tang Wanhui, villager of 7th Team needs to find a new site in 5th Team nearby to build new house. Hualong Township plans to demolish 130 rural houses, and within 1month since the work starts, 126 house demolition agreements have been signed. During house demolition, the compensation standards defined in Compensation implementing Methods for Land Acquisition and Resettlement for LCR in Guang’an City issued by Guang’an City government and the requirements for information disclosure and publicization have been faithfully enforced.

4) Mr. Li, Vice County Major, Wusheng County (13608273999)

101.During land acquisition and house demolition for execution of LCR Project Wusheng section, Urgent Notice of CPC Sichuan and Sichuan Province People’s Government on Improving Compensation for Land Acquisition and House Demolition (CPC Sichuan Document No.12, 2005), Notice on Transmitting Opinions of Provincial Administration of State Land and Resource on Adjusting Compensation Standards for Land Acquisition and House Demolition by Office of Sichuan Province People’s Government (Document No. 73, 2008) and Notice on Furthering Social Security Coverage to Peasants Whose Land is Acquired by Office of Sichuan Province People’s Government (Document No.15, 2008) have been faithfully enforced. For land acquired for LCR, social security will be extended to cover APs at first, and then land be acquired, with social security being provided in proportion to actually acquired land. County finance bureau will open a dedicated account to keep social security funds for peasants whose land is acquired, and no less than 70% of land acquisition compensation, all allowance for resettlement, government’s withholdings from land transferring fees and other funds devoted to social security of the peasants whose land is acquired will be paid into this account and used for this purpose only. Those peasants who have land acquired and wish to be employed and trained will be brought under

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ADB LOAN EXTERNAL Monitoring Report– No. 1 urban employment management and registered as unemployed. Re-employment Preferential Certificates will be given to those who are eligible to enjoy preferential treatments in employment introduction, employment training, tax deduction and exemption and small loans, essentially implementing policies on promoting employment and providing preferential treatments in re-employment.

The county government aligns the reality of these peasants to employment requirements, and organizes polytechnic school, vocational school, social societies and professional training institutions to strengthen training for peasants whose land is acquired. In result, the ability of such peasants to seek employment and adapt to increasingly competitive labor markets has been substantially improved so that they can better grip employment opportunities.

5) Li Faxi, 5th Team of Haokou Village, Yuanxi Town, Changxi County (0839-3600273)

102. Being 50 years old and with junior middle school education, Li is a peasant of Han nationality who performs non-farming work outside of hometown. The family has four members including wife (47 years old, Han nationality, junior middle school education and performs non-farming work outside of hometown), elderly daughter (high school education, performs non-farming work outside of hometown), son (18 years old, high school student) and himself. 4.7 mu is temporarily acquired by LCR, and a brick house of 150m2 and a brick-wood house of 90m2 are demolished. They plant corn and rice to annually make income of RMB3, 000 to 4,000, and non-farming work can make income of RMB30, 000 to 40,000. They have a TV set, with living standards belonging to the upper-medium end in the village. Yuanxi Town covers land of 72.8km2 and has population of 16,000, administrating 17 village committees including Gulou, Longhui, Gongling, Yandeng, Xuetang, Longyan, Xinmiao, Qibao, Sancha, Minzhong, Fengshan, Si Fangshan, Yuanxi, Yakou, Haokou, Shipan and Qingming. Main agricultural produce includes rice, wheat, corn and rape seeds.

6) Li Hanfu, Haokou Village, Yuanxi Town, Changxi County, Guangyuan (15983940449)

103. Being 40 years old and with junior middle school education, Li is a peasant of Han nationality who performs non-farming work outside of hometown. His family has 5 members, including father (67 years old, illiterate), mother (61 years old, illiterate), wife (40 years hold, Han nationality, elementary school education and peasant), son (high school student) and himself. 3 mu of land is temporarily acquired, and a brick house of 400m2 demolished. They plant corn and rice to annually make income of RMB3, 000 to 4,000, and non-farming work can annually make 53 CIECC OVERSEAS CONSULTING CO.,LTD

ADB LOAN EXTERNAL Monitoring Report– No. 1 income of RMB8, 000 to 12,000. They have a TV set and their living standards belong to medium-low end in the village.

7) Li Fangjun, Haokou Village, Yuanxi Town, Changxi County, Guangyuan (13881249734)

104.Being 53 years old and with elementary school education, Li is a peasant of Han nationality. Besides himself, his family has 3 members, including wife (54 years old, Han nationality, illiterate and peasant), sun (29 years old, junior middle school education and performs non-farming work outside of hometown), and daughter (27 years old, junior middle school education and performs non-farming work outside of hometown). 4 mu of land is temporarily acquired, and a brick house of 380m2 is demolished. They plant corn and rice and farm fish to make annual income of RMB5, 000 to 7,000, and they perform non-farming work to make annual income of RMB18, 000 to 20,000, with annual expenditure RMB15, 000. They have a TV set, and their living standards belong to medium end in the village.

8) Zhao Julin, 4th Team of Qunfeng Village, Miaoya Town (15181370251)

105.Being 53 years old and with elementary school education, Zhao is a peasant of Han nationality who performs non-farming work outside of hometown. Besides himself, his family has 4 members including wife (55 years old, Han nationality, illiterate and peasant), son-in-law (30 years old, junior middle school education and performs non-farming work outside of hometown), daughter (28 years old, vocational school education and performs non-farming work outside of hometown) and grandson (7 years old, elementary school student). 1.2 mu of land is acquired permanently and 0.7 mu temporarily, as well as a brick house of 360m2 is demolished. They plant corn and rice to make annual income of RMB2, 000 to 3,000, and non-farming work can annually contribute RMB20, 000 to 30,000, with annual expenditure as RMB14, 000. They have a TV set and living standards belong to medium end in the village. This town administrates 5 administrative villages, 42 villager teams, and 13,145 villagers from 3,558 households, including 7,414 laborers. The town covers land of 35.9km2, with irrigated land of 12,420 mu suitable for growing a variety of crops and economic plants. The town’s economy relies on grain production, silk worm raising, hog raising and labor services, with annual total industrial and agricultural output as RMB65 million and net income per capita RMB2,800.

9) Xie Yuanming, 3rd Team of Qunfeng Village, Miaoya Town (0839-5218012)

106.Being 54 years old and with elementary school education, Xie is a peasant of Han nationality who performs non-farming work outside of hometown. His family has five members, including wife (55 years old, Han nationality, elementary school education and performs non-farming work 54 CIECC OVERSEAS CONSULTING CO.,LTD

ADB LOAN EXTERNAL Monitoring Report– No. 1 outside of hometown), son (28 years old, junior middle school education and performs non-farming work outside of hometown), daughter (24 years old, high school education and performs non-farming work outside of hometown) and grandson (2 years old). No land is acquired, and a brick house of 220m2 is demolished, with rural housing land 180m2. They plant corn and rice to make annual income of RMB2, 000 to 3,000, and non-farming work can annually contribute RMB20, 000 to 30,000, with annual expenditure of RMB12, 000. They have a TV set and their living standards belong to medium end in the village.

10) Zhang Defu, 4th Team of Qunfeng Village, Miaoya Town (0839-5218111)

107.Zhang is a Han nationality peasant at age of 67, with elementary school education. His family has 5 members, including wife (67 years old, Han nationality, elementary school education and housekeeper), son (37 years old, college education and works outside of hometown), daughter-in-law (college education and works outside of hometown), and granddaughter (high school student). No land is acquired, and a brick house of 100m2 is demolished, with rural housing land of 320m2. They plant corn and rice to make annual income of RMB2, 000 to 2,500, and non-farming work can contribute another RMB20, 000 to 25,000, with annual expenditure of RMB28, 000. They have a TV set, and their living standards belong to medium-end in the village.

8.4.4 Chongqing Municipality

1） Lu Zhonghe, Secretary of Land Acquisition and House Demolition Team, Railway Construction Office of Chongqing Municipality (13908348202)

108.In terms of organization, a leading team to provide support to LCR construction is formed with Vice Major Tong Xiaoping as team leader, and administration of state land and resource will implement land acquisition and house demolition. Compensation standards for land acquisition and house demolition will uniformly follow Notice of Chongqing Municipality People’s Government on Adjusting Policies on Compensation for Land Acquisition and Resettlement (Chongqing Government Document No. 45, 2008), which defines that a single compensation standard will be implemented for construction of road, railway and reservoir, and RMB20,000 will be paid by municipal government for each mu of acquired land in urban Chongqing, and RMB15,000 for each mu of acquired land outside of urban Chongqing. The funds will be allocated by following such process: Chonqing municipal department of finance, land consolidation and acquisition office under municipal administration of state land and resource, administration of state land and resource at county/district level, affected township/town and APs.

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ADB LOAN EXTERNAL Monitoring Report– No. 1 80% of compensation will be paid into social security funds. China Everbright Bank Chongqing Branch has extended loan of RMB500 million to fill the shorted compensation of 6 land acquisition and house demolition projects.

2） Mr. Huangjin, Land and Housing Administration, Chongqing Municipality (023-63651379)

109.LCR spans approximately 91km in Chonqing, and land acquisition and house demolition affects 4 districts as Hechuan, Beibei, Sha Pingba and North New District. To smooth project execution, district project assistance offices and affected towns/streets/agencies have paid due attention to the work of land acquisition, house demolition and compensation, and the project’s needs for land has been essentially satisfied, except for some lingering issues. It is important to strengthen organization and leadership, clearly define functionality and responsibility, strictly enforce working disciplines, accept public monitoring, vigorously resolve disputes and maintain social stability.

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ADB LOAN EXTERNAL Monitoring Report– No. 1 9. Conclusion, Problem and Recommendation

9.1 Monitoring Evaluation Conclusion

110.The main part of land acquisition and house demolition for LCR Project has been completed. In terms of progress, though Gansu and Sichuan has nearly finished scheduled land acquisition and most house demolition, large amount of resettlement work needs to be done, especially construction of concentrated resettlement spots and temporary land acquisition. Progress and quality of the earlier will have impacts on restoration of APs’ living. Land acquisition and house demolition in urban Chongqing is behind of schedule, and large amount of work needs to be done. The progress and quality of land acquisition and house demolition in urban Chongqing, especially that of factory buildings, will have impacts on overall project progress. The land acquisition and house demolition outside of urban area has been essentially finished. In general, land acquisition and house demolition at most places along LCR is proceeding in satisfying manner.

111.Compensation and resettlement for LCR Project basically has executed RAP. Though progress of actual land acquisition and house demolition work differs by place along LCR, it has followed the compensation and resettlement policies and schemes formulated in accordance with laws and regulations and enacted a procedure in which compensation will be paid before actual demolition. In addition, resettlement processes like on-site survey and measurement of impacts, impacts publicization, compensation and resettlement publicization and signing agreement with APs have been strictly implemented. APs have fully acknowledged compensation and resettlement policies, complaints during land acquisition and house demolition can be smoothly raised, and opinions of APs can be timely dealt and fed back

112.Due attention has been given to compensation to and resettlement of APs. Resettlement authorities at most places offer multiple resettlement options, including reserved land resettlement, cash resettlement and joining social security system, and it is particularly noteworthy that Sichuan Province, Lanzhou City and Chongqing Municipality have actualized measures to secure social security funds for peasants whose land is acquired, so that living of APs can better protected. In the meantime, they also provide allowance to compensate internal decoration of demolished housing, a method that in essence increases amount of compensation and is worth encouraging and appraising. During resettlement, except promising to pay full compensation in one allotment or two allotments (usually two allotments), resettlement land is provided in concentrated or distributed mode to make sure that APs can acquire housing land on FOC basis to build new

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ADB LOAN EXTERNAL Monitoring Report– No. 1 houses and avoid levies of tax and surcharges. The Institution finds in its on-site investigation and evaluation that resettlement authorities at all places have managed to satisfy resettlement requirements of APs, and resettlement housing that has been completed exhibit good conditions. The Institution has not found any significant disputes around issues of resettlement.

113.Agencies founded at all levels that take charge of land acquisition, house demolition and resettlement are playing key role, which guarantees the achievement of RAP objectives.

114.A definitive conclusion can be drawn from the gathered massive information that during land acquisition, house demolition, compensation and resettlement for LCR Project, APs have been well treated, restoration of their work and living is underway, and most APs feel satisfied with compensation and resettlement.

9.2 Problem and Recommendation

115.In this phase of monitoring investigation, the Institution has carried out monitoring evaluation in strict compliance with the RAP originally proposed to ADB. According to the requirements of this RAP, the monitoring evaluation team has found some unsatisfying issues, which is listed below with the Institution’s counter-measures and recommendations:

116.Some problems are still pending for solution, including: dilapidated houses outside of the Red Line needs to be examined and treated; some resettled households whose houses were demolished but land is not acquired now reside long distance from their land; some temporarily acquired land can longer be re-cultivated and needs to be checked by qualified institutions so that it can be treated as permanently acquired land; and project execution cuts off irrigation to some farmlands and at many places it is not possible to add new irrigating facilities, so local governments and villagers require to treat such as dry-land and to make according compensation. The monitoring team acknowledges that most problems have been raised and are pending for solution, and hopes that competent authorities to accelerate handling to avoid impact on farming work. Some cornered land lots that have no access or water supply are created by project execution, and local governments and villagers require the executing parties to acquire them, to which the LCR Project Construction Headquarters reply that it is unnecessary to acquire the land, but appropriate compensation can be made. The monitoring team acknowledges that most problems have been closed, but some are still open, and the team hopes that the competent authorities to accelerate handling to avoid impact on farming work. Large volume of water gathers in many tunnels due to limits of railway speed raising and design, which brings about considerable inconveniences to

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ADB LOAN EXTERNAL Monitoring Report– No. 1 living and work of residents along the railway. APs complain strongly and competent authorities have already taken measures, but water gathering in some tunnels remains unresolved up to date. It is hoped that competent authorities take expedient efforts to protect the interests of the re-settlers.

117.At some places, compensation agreement has been reached with numerous small businesses, such as small workshop and small store, for land acquisition and house demolition, but the land for resettlement can’t be arranged in time. The Institution believes that this will present potential adversities to the resettlement of these affected small businesses and their restoration of operations. It is recommended that more secured resettlement approach be developed for these affected small businesses to help them resume operations.

9.3 Arrangement of External Monitoring Institution for Further Work

118.In the next phase, the Institution will carry out external monitoring focusing on the following issues:

„ Continue to closely monitor compensation to and resettlement of affected businesses, shops, schools and urban residents;

„ Continue to closely monitor construction of concentrated resettlement spots in Chongqing Municipality and Hubei Province, as well as construction of APs’ new housing;

„ Continue to watch restoration of affected infrastructure;

„ Continue to track implementation of standards of compensation and resettlement for land acquisition and house demolition at places along LCR, and payment of compensation;

„ Track restoration of work and living of APs;

„ Closely watch totals of temporarily acquired land, special facilities, woods and paid compensation; „ Closely watch relocation of large stations and impacts on its surroundings.

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