The World Bank Financed Wuhan Urban Transport Project (Phase II)

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RP849

Public Disclosure Authorized The World Bank Financed Wuhan Urban Transport Project (Phase II)

Resettlement Action Plan

Public Disclosure Authorized Public Disclosure Authorized

Wuhan Management Office for Foreign Fund Financed Urban Construction Project

Public Disclosure Authorized September, 2009 Contents

1. Project Overview...... 1 1.1 Brief Introduction to the Project...... 1 1.2 Region Benefiting From the Project ...... 3 1.3 Regions Affected by the Project ...... 5 1.4 Measures to Mitigate Impact ...... 6 1.4.1 Measures adopted in the project design stage ...... 6 1.4.2 Measures to be adopted during land acquisition and relocation ...... 10 1.4.3 Measures to be adopted during the construction ...... 11 1.5 Preparation and Progress of the Project ...... 11 1.6 Ownership of the Project...... 12 1.7 Implementation of the Project ...... 12 1.8 Approval for Land Use and Relocation ...... 13 1.9 Laws Related to Compensation Rate ...... 13 2. Project Impact Analysis ...... 14 2.1 Definition of project impact ...... 14 2.2 Project Impact Survey...... 15 2.3 Impacts of Land Acquisition and Relocation ...... 16 2.4 Impacts of Land Acquisition...... 18 2.4.1 Acquisition of rural collectively-owned land...... 18 2.4.2 Acquisition of state-owned land ...... 22 2.5 Impacts of Relocation ...... 22 2.5.1 Relocation of private houses ...... 23 2.5.2 Relocation of buildings of enterprises and institutions...... 23 2.5.3 Affected shops ...... 25 2.5.4 Unlicensed buildings affected by the projects...... 25 2.5.5 Affected attachments...... 25 2.6 Affected Vulnerable Groups ...... 26 2.6.1 Determination of affected vulnerable groups...... 26 2.6.2 Affected families of vulnerable groups...... 26 2.7 Affected Infrastructures...... 27 3. Analysis on Socioeconomic Survey of project impact ...... 28 3.1 General Introduction to Socioeconomic Development of the Regions Affected by the Project...... 28 3.2 General Situation of Affected Villages (Communities) ...... 29 3.3 Analysis on Basic Information of Affected Families...... 30

i 3.4 Impacts on Ethnic Minorities and Social Gender...... 34 4. Laws, Regulations and Policies...... 36 4.1 Main laws, Regulations and Policies to Follow...... 36 4.1.1 Relevant laws and provisions enacted by the central government ...... 36 4.1.2 Laws, regulations and policies enacted by the People’s Government of Hubei Province ...... 36 4.1.3 Laws, regulations and policies enacted by Wuhan Municipal Government ...37 4.1.4 World Bank’s Policies on Involuntary Resettlement ...... 37 4.2 Summary of Main Laws, Regulations and Policies...... 38 4.2.1 Summary of relevant national and provincial laws and regulations...... 38 4.2.2 Summary of related laws, regulations and rules of Wuhan City...... 44 4.2.3 The World Bank’s Relevant Policies on Involuntary Resettlement...... 48 4.3 Resettlement Policies for the Project ...... 51 4.3.1 Policies on acquisition of collectively-owned land ...... 51 4.3.2 Policies on acquisition of state-owned land...... 52 4.3.3 Policies on house relocation on state-owned land...... 52 4.3.4 Policies on house relocation on collectively-owned land ...... 53 4.3.5 Policies on compensation for shops to be relocated...... 54 4.3.6 Policies on compensation for unlicensed houses...... 54 4.3.7 Policies on special support for vulnerable groups...... 54 4.3.8 Policies on resettlement of transient population and leaseholder...... 54 5. Resettlement Compensation Rates...... 56 5.1 Compensation Rate of Requisitioning Collectively-owned Land ...... 56 5.2 Compensation Rate of State-owned Land Acquisition ...... 59 5.3 Compensation Rate of Relocation Houses on State-owned Land ...... 59 5.3.1 Compensation rate of dwelling houses on state-owned land ...... 59 5.3.2 Compensation rate of non-domestic houses on state-owned land...... 60 5.4 Compensation Rate of Houses to Be Relocated on Collectively-owned Land .....61 5.5 Compensation Rate of Shops to Be Relocated...... 62 5.6 Compensation for Unlicensed House...... 63 5.7 Rates for moving allowance and transition allowance...... 63 5.8 Compensation for Household Facilities...... 64 6. Implementation Plan for Resettlement and Rehabilitation...... 65 6.1 Objectives, Methods and Principles of Resettlement and Rehabilitation ...... 65 6.1.1 Objectives of resettlement and rehabilitation...... 65 6.1.2 Methods of resettlement and rehabilitation...... 65 6.1.3 Principles of resettlement and rehabilitation...... 66 6.2 Resettlement of Relocated Households...... 66

ii 6.3 Rehabilitation of Peasants Affected by Land Acquisition...... 70 6.4 Rehabilitation of Affected Enterprises and Public Institutions ...... 71 6.5 Resettlement and Rehabilitation of Affected Shops ...... 76 6.6 Rehabilitation of Specialized Facilities...... 77 6.7 Resettlement and Rehabilitation of Affected Vulnerable Groups...... 77 6.8 Schedule of Resettlement and Rehabilitation...... 78 7. Budget and Management of Resettlement Fund ...... 81 7.1 Composition of Resettlement Fund ...... 81 7.1.1 Land acquisition compensation...... 81 7.1.2 Relocation compensation ...... 81 7.1.3 Compensation for attachments to the ground and public facilities ...... 81 7.1.4 Other relevant costs ...... 82 7.1.5 Administrative cost ...... 82 7.1.6 Contingency cost ...... 82 7.2 Resettlement Fund Budget ...... 82 7.3 Receivers and Flow Direction of Resettlement Fund ...... 83 7.3.1 Resettlement fund receivers ...... 83 7.3.2 Source and flow direction of resettlement fund ...... 84 7.4 Payment, Management and Monitoring of Resettlement Fund...... 84 7.4.1 Payment of resettlement fund...... 84 7.4.2 Management and monitoring of resettlement fund...... 85 8. Resettlement Organizations ...... 86 8.1 Organizational Structure...... 86 8.2 Responsibilities of Organizations ...... 87 8.2.1 Urban Construction Fund Office of the People’s Government of Wuhan City ...... 87 8.2.2 WMOFFFUCP...... 87 8.2.3 Resettlement Division of WMOFFFUCP ...... 87 8.2.4 Subproject implementing agencies...... 88 8.2.5 Independent monitoring organization...... 88 8.3 Personnel and Facilities of Resettlement Organizations at All Levels ...... 88 8.4 Measures for Improvement of Capabilities of Organizations ...... 90 8.5 Plan for Improvement of Capabilities of Organizations ...... 92 9. Public Participation and Negotiation...... 94 9.1 Public Participation and Negotiation Activities Carried out up to Now ...... 94 9.2 Feedback on Public Participation and Negotiation...... 100 9.3 Next Negotiation Plan with Affected Population ...... 104 9.4 Consultation Modes of Affected Population during Project Implementation Period

iii ...... 105 9.5 Policy Disclosure and Resettlement Information Booklet ...... 106 10 . Complaint and Appeal...... 107 10.1 Means of Collecting Dissatisfaction and Complaints...... 107 10.2 Procedure of Complaining and Appealing ...... 107 10.3 The Principles of Handling Complaints...... 108 10.4 Contents of the Reply and Ways of Replying to Complaints ...... 108 10.4.1 Contents of the reply...... 108 10.4.2 Ways of replying to complaints ...... 109 10.5 Record of Complaints and Appeals and Relevant Feedback...... 109 10.6 Contact Information for Expressing Complaints and Appeals ...... 110 11. Resettlement Monitoring...... 111 11.1 Internal Monitoring ...... 111 11.1.1 Purpose and principles ...... 111 11.1.2 Procedure of internal monitoring...... 112 11.1.3 Contents of internal monitoring...... 113 11.1.4 Means of internal monitoring ...... 114 11.1.5 Internal monitoring agency and personnel assignment...... 118 11.1.6 Cycle of internal monitoring and reporting...... 118 11.2 Independent Monitoring ...... 119 11.2.1 Purpose of independent monitoring...... 119 11.2.2 Independent monitoring organization and monitoring personnel...... 120 11.2.3 Assignments of the independent monitoring organization...... 120 11.2.4 Means and procedures of independent monitoring...... 120 11.2.5 Contents of independent monitoring...... 121 11.2.6 Reporting system for independent monitoring ...... 125 12. Entitlement Matrix...... 126 Attachment 1 ...... 131

iv List of Tables

Table 1-1 Composition of the World Bank financed Wuhan Urban Transport Project.....2 Table 1-2 List of regions affected by the resettlement for Wuhan Urban Transport Project ...... 6 Table 1-3 Comparison for program optimization of Shuidong Section of Second Ring Line ...... 8 Table 1-4 Analysis of social impact on the four parking lots in the original planning.....9 Table 1-5 Schedule for the preparation and implementation of the project ...... 13 Table 1-6 Schedule for applying for approval for land use and relocation ...... 13 Table 2-1 Summary of the impacts of land acquisition and relocation for Wuhan Urban Transport Project ...... 17 Table 2-2 Ownerships and status quo of collectively-owned land to be requisitioned...19 Table 2-3 Categories and quantity of collectively-owned land to be requisitioned (mu)21 Table 2-4 Quantity and status quo of state-owned land to be requisitioned...... 22 Table 2-5 Areas of buildings to be relocated for Wuhan Urban Transport Project ( ) .22 Table 2-6 Categories of buildings to be relocated for Wuhan Urban Transport Project ( )...... 22 Table 2-7 Types and areas of private houses to be relocated...... 23 Table 2-8 Buildings of enterprises and institutions to be relocated...... 24 Table 2-9 Shops affected by Wuhan Urban Transport Project...... 25 Table 2-10 Attachments affected by Wuhan Urban Transport Project...... 25 Table 2-11 Affected vulnerable groups...... 27 Table 3-1 General situation of socioeconomic development of the regions affected by Wuhan Urban Transport Project (2007)...... 29 Table 3-2 Basic characteristics of displaced persons of Wuhan Urban Transport Project ...... 31 Table 3-3 Dwelling situation of affected families of Wuhan Urban Transport Project...32 Table 4-1 Areas classification in Hubei for the lowest standard of land acquisition compensation...... 40 Table 5-1 Various taxations payable for land acquisition...... 57 Table 5-2 Compensate rates of attachments to the ground...... 58 Table 5-3 Compensation rate of collectively-owned land acquisition...... 58 Table 5-4 Compensation rate of state-owned land acquisition...... 59 Table 5-5 Compensation rate of dwelling houses on state-owned land ...... 60 Table 5-6 Compensation rate of houses to be relocated on state-owned land...... 60

v Table 5-7 Relocation rate of houses to be relocated on collectively-owned land...... 62 Table 5-8 Relocation rate of shops to be relocated ...... 62 Table 5-9 Compensation rate of unlicensed house...... 63 Table 5-10 Moving allowance and transition allowance...... 64 Table 5-11 Compensation rate of household facilities ...... 64 Table 6-1 subsidied housing resources at project areas (the construction started in 2008) ...... 68 Table 6-2 Situation of influence on enterprises and public institutions and resettlement measures...... 72 Table 6-3 Schedule of resettlement activities ...... 79 Table 7-1 Table of resettlement fund budget of Wuhan Urban Transport Project...... 82 Table 7-2 Resettlement fund receivers ...... 84 Table 8-1 Resettlement organizations for Wuhan Urban Transport Project...... 86 Table 8-1 Personnel of resettlement offices at all levels for Wuhan Urban Transport Project ...... 89 Table 8-2 Arrangement of personnel of resettlement organizations at all levels...... 89 Table 8-3 Facilities of resettlement organizations at all levels...... 90 Table 8-4 Schedule of operational training of resettlement personnel...... 91 Table 8-5 Schedule of operational training of resettlement organizations in future...... 92 Table 9-1 Main activities of resettlement information disclosure and negotiation...... 94 Table 9-2 Summarized table of public opinions and advices ...... 97 Table 9-3 Feedback on public participation and negotiation of World Bank Financed Wuhan Urban Transport Project ...... 101 Table 9-4 Time arrangement for consultative meetings with displaced persons ...... 105 Table 10-1 Record form of complaints and appeals on the resettlement of the World Bank Financed Wuhan Urban Transport Project ...... 109 Table 10-2 Information of the organizations and persons for receiving the complaints and appeals of displaced persons...... 110 Table 11-1 Land acquisition and resettlement progress ...... 116 Table 11-2 Progress of using the compensation fund...... 118 Table 11-3 Personnel of internal monitoring in resettlement agency...... 118 Fig. 6-1 Planning map for reformation of “Village within the City” in Tieji Village.....69 Fig. 6-2 Newly built residential district for resettlement of relocated villagers at Shuidong Section of Second Ring Line...... 70

vi 1. Project Overview

1.1 Brief Introduction to the Project

The World Bank financed Wuhan Urban Transport (Phase II) ,one of the key projects in Wuhan City , is a new project aimed at further improving Wuhan urban transport on the basis of the World Bank financed Wuhan Urban Transport Project (Phase I). The Phase-II project includes four subprojects: (1) public transport priority corridor improvement subproject; (2) road and safety subproject; (3) transport demand management subproject: (4) road network improvement subproject; and (5) technical assistance subproject. According to the preliminary plan, the project will be commenced in the second half of 2009, and the construction period will be five years. Public transport corridor improvement subproject Construction contents: newly build five bus-specific lanes with total length of 33km; and build four bus stations, including 1 junction station, 2 initial and terminal stations and 1 PHK parking lot. Meanwhile, the construction of bay stations will be carried out to fit in the subproject of road network improvement. Road and safety subproject The traffic safety improvement for safety corridors of 5 roads, priority measures of public transport corridors, and the comprehensive safety construction of roads within the Second Ring Line. Transport demand management subproject Integrating with the implementation of ETC system, establish the cross-river traffic monitoring system. Road network improvement project Three roads, Shuidong Road, Shuidong Section of Second Ring Line and downward extension line of Jiefang Avenue are with the total length of 14.24km. The Shuidong Section of Second Ring Line includes Chailin interchange (Phase I) and Hongmiao interchange. Technical assistance subproject Provide special research, staff training, project investigation and research, consulting service, learning and investigation and corresponding office equipment, for the successful implementation of the project as well as the future normal operation and management and the sustainable development of urban transport.

1 Table 1-1 Composition of the World Bank financed Wuhan Urban Transport Project Land Relocati No. Subproject Engineering contents acquis on ition Public transport I priority corridor improvement Bus lanes to be Newly build five bus lanes with total length of 1 newly built 33km

Reconstruct 22 bus stations, and newly build 2 Bus bay station 16 bay stations 3 Junction station Sanjintan junction station Tianshunyuan Community initial and terminal Initial and station 4 terminal station Gangduhuayuan Community initial and terminal station 5 Parking lot Jinyintan ground parking lot Road and safety II subproject Traffic safety improvement for 1 safety corridors of 5 roads Priority measures of public 2 transport corridors comprehensive safety 3 construction of roads within the Second Ring Line Road network IV improvement subproject Linjiang Road to Heping Avenue, length 1 Shuidong Road 915m, width 130m Shuidong Section Extension line of Zhongbei Road to Heping 2 of Second Ring Avenue, length 3361m, width 50m~130m. Line Build two interchanges Downward Huangpu Road to Third Ring Line, length 3 extension line of 9438m, width 50-60m Jiefang Avenue Technical V assistance subproject

2 Source: Feasibility Study Report for the World Bank Financed Wuhan Urban Transport Project (Phase II), Wuhan Municipal Design and Research Institute, Aug. 2009 Note: The land acquisition and relocation work amount of some bus bay stations in the public transport priority corridor improvement subproject is counted into the road network improvement subproject.

1.2 Region Benefiting From the Project

The phase-II construction of the World Bank financed Wuhan Urban Transport Project will help Wuhan to build a powerful transport system, fulfill the increasing transport demand, reduce traffic jam in the central city zone, gradually realize the smoothness within the Second Ring Line, improve urban layout, direct the harmonious development of urban land use, further optimize urban road network, bring the city into full play in under-construction and completed projects, and further raise its management level. Therefore, the region benefiting from the project will be the whole city of Wuhan. Wuhan City, at East Longitude 113°41 115°05 and North Latitude 29°58 31°22 , is located in the east of Jianhan Plain and at the junction of Yangtze River and Hanjiang River, and is reputed as the River City. Its largest east-west width is 134km, and largest south-north length 155km. In the economic and geographic layers of China, Wuhan has an advantaged location, about 300km away from Jingzhou, Yichang, Shiyan, Xiangfan, Xiaogan and Huangshi in Hubei Province in the inner layer, about 600 km from such large and medium-size cities as Changsha, Zhengzhou, Luoyang, Nanchang and Jiujiang in the middle layer, and about 1200km from such super-large cities as Beijing, Tianjin, Shanghai, Guangzhou, Chongqing, Xi’an in the outer layer. It is the capital of Hubei Province and the largest city in the central China region, and has long been reputed as the Thoroughfare to Nine Provinces. Since the reform and opening up, Wuhan has increased its investment in transport construction, actively improving transport environment and facilitating economic development. However, compared with other comparable cities in China, the current demand and supply of transport is at a lower level, and transport management is also relatively backward, mostly embodied as below: 1) The overall transport construction lags behind the urban development. The capacity of road transport is inadequate, and the construction of track transport and cross-river passages is under demand. 2) Traffic conflict in the central area is conspicuous. The average driving speed in

3 the central area declines continuously, and that in 2007 was 23.9km/hour. The traffic problem in Hankou is especially severe, and the average driving speed was only 21.9km/hour. Wuhan City was divided by Yangtze River and Hanjiang River into Hankou, Hanyang and Wuchang, and there are many hills and lakes in the city. Besides, affected by railways, the traffic network objectively is bad, the transport in the city zone is extremely concentrated on a few cross-river passages and main trunks linking to them, and bus lines have a high overlapping coefficient, increasing the difficulty of transport organization and management. 3) The predominance of public transport has not been established. The proportion of public transport is comparatively low, 20%-23% of the travel mode structure of residents. At present, routine ground bus still serves as the main carrier, rapid passenger transport system is absent, and the service of public transport has to be improved. Traffic transport is just new and has not played the role of shaft for public transport. Compared with other main large cities in China, the construction of urban track transport in Wuhan not only has a late start, but also has a small construction scale. 4) Transport management cannot meet the requirement of rapid development of the city. On the one hand, the existing road transport resources in Wuhan are limited, and the construction of road facilities, parking facilities and pedestrian overpasses is backward; on the other hand, some people have weak traffic awareness, there are severe phenomena of operation and parking with occupying roads illegally, and pedestrians walk and drivers drive at will, resulting in low utilization efficiency of the limited transport resources. Especially, the transport potential of many streets and alleys in the central area has not been developed, so the accessibility is low and residents have difficulty in travels; “dead-end roads” and “bottleneck roads” obstruct completed roads from being put into normal operation. Additionally, transport management has to be improved. For the control of most regional road transport in the city zone, spot control and multi-period and periodic control are adopted, resulting in a gap between the status quo and the requirement of the overall development of the city. 5) Transport pollution becomes severe increasingly, and transport has become the major pollution source for the city. Because the road system in Wuhan is simple, living quarters mostly spread on both sides of main trunks in the urban district, and a great number of passenger and goods vehicles run randomly. As a result, air pollutants emitted by vehicles severely impact surrounding ambient equipments, and traffic noise also has a conspicuous impact on surrounding sound environment. Therefore, the phase-II construction of the World Bank financed Wuhan Urban Transport Project, including both the construction of bus lanes, bus stations and bay

4 stations and the investment in transport management and safety facilities, not only connects with the World Bank financed public transport and transport management projects that have been completed in the first phase and brings the completed facilities into play, but also interacts favorably with the track transport construction in progress and realizes low investment and high benefit. Furthermore, the construction of Shuidong Section of Second Ring Line and downward extension line of Jianshe Avenue in the road network improvement subproject, in combination with Erqi Yangzte River Bridge under construction and the Hankou Section of Second Ring Line to be commenced, may form a closed ring of Second Ring Line with the south section of Third Ring Line that has been formed, offering rapid passenger and goods transport services for the central area and bring newly-build cross-river passages, ring transport and radial transport into full play. The project will help Wuhan to build a powerful transport system, fulfill the increasing transport demand and raise its transport management level, providing strong support for the social and economic development of Wuhan.

1.3 Regions Affected by the Project

The regions affected by the World Bank financed Wuhan Urban Transport Project are all concentrating in Wuhan City. The resettlement for road network improvement subproject and public transport improvement subproject involves three urban districts, i.e. Jiang’an District, Qiaokou District and Hongshan District, and one remote urban area, i.e. Dongxihu District, among which, Hongshan District and Jiang’an District involve a large amount of land acquisition and relocation, and Qiaokou District and Dongxihu District involve a quite small amount. With respect to the road network improvement subproject, the downward extension line of Jiefang Avenue involves 4 streets, 13 communities and 2 villages. Shuidong Section of Second Ring Line involves four villages in Heping Street in Hongshan District. And the relocation work of Shuidong Road will be completed by the Erqi Yangtze River subproject, so it doesn’t involve with the resettlement. With respect to the public transport subproject, Sanjintan bus junction station is situated in Sanjintan Village in Houhu Street in Jiang’an District, Tianshunyuan Community initial and terminal station in Yongfeng Village in Changfeng Town in Qiaokou District, Jinyintan ground parking lot in Xinyi Village in Houhu Street in Jiang’an District. See Table 1-2 for the impact scope of the resettlement for Wuhan Urban Transport Project

5 Table 1-2 List of regions affected by the resettlement for Wuhan Urban Transport Project

No. Item District Street Community (village) Public transport I subproject Sanjintan bus junction Dongxihu 1 Jiangjun Street Machi Community station District Tianshunyuan Qiaokou 2 Changfeng Town Yongfeng Village Community initial District Gangduhuayuan Hongshan Gangduhuayuan 3 Heping Avenue Community initial District Community Jinyintan ground Jiang’an 4 Houhu Street Xinyi Village parking lot District Road network II improvement Chailin Village, Tieji Hongshan Shuidong Section of Village, Heping Village, 1 District Heping Street Second Ring Line Donghu Village

Sidao Community, Erqi Street Changjian Community Xuzhou Community, Xuzhou New Changhudi Community, Village Street Weiyi Community Downward extension Jiang’an 2 Dandong Community, line of Jiefang Avenue District Danshuichi Street Dannan Community, Danzhong Community. Danxi Community Xingfu Village, Xinrong Houhu Street Community, Dijiaobian Community 1.4 Measures to Mitigate Impact

For Wuhan Urban Transport Project (Phase II), resettlement is considered as a factor to which the highest priority is given during the planning and the implementation. With full consideration of construction cost, social impact, environmental impact and other factors, efforts should be made to minimize the resettlement for the project.

1.4.1 Measures adopted in the project design stage

In the planning and design stage, for the purpose of minimizing the impact of project construction on local society and economy, the World Bank Financed Project Office of Wuhan held many joint meetings, with attendance of consulting units and

6 design units, to negotiate how to optimize the design program and minimize the social and economic impact of resettlement. During communication and negotiation, experts from Wuhan Municipal Design Institute responsible for design, the Fourth Survey and Design Institute of China Railway for environmental impact assessment, Center for Involuntary Resettlement Research, Wuhan University for resettlement consulting, and Joint Subject Team for public participation and opinion collection, voiced their opinions on project optimization from different points, and finally Wuhan Municipal Design Institute concluded an agreement and submitted it to the project office. In the design, the principles concluded for realizing project optimization and minimizing the impact of resettlement are described as below: First, carry out project optimization and comparative selection, make consideration as most as possible to the impact of project construction on local society and economy, and try to occupy vacant land and minimize the occupation of cultivated land if land occupation is unavoidable. Second, minimize relocation if it is unavoidable, and regard it as one key indicator for program optimization and comparative selection. Meanwhile, reserve reasonable space for the connection of this project with other municipal facilities. Third, make full consideration to and try to minimize land acquisition and relocation when comparing different design programs. For example, for the construction of Shuidong Road, there are two different programs, i.e. viaduct construction and level crossing construction. In order to select the optimal program, the project office requested the design unit to technically compare the advantages and disadvantages of two programs, retained the public participation subject team specially to collect the opinions of affected population along the line on this matter, called the environmental assessment unit to compare these two programs, and required the resettlement office to comparatively analyze the impacts of land acquisition and relocation in the two programs. Through all-round comparison and analysis, the program of viaduct construction was ultimately selected, in which, the area of land to be occupied is reduced by 45mu, the area of relocation by 10000 , and the number of affected households by 150.

7 Table 1-3 Comparison for program optimization of Shuidong Section of Second Ring Line

Construction mode Full-line viaduct Ground main road and auxiliary road 1. The main line is continuously upward and downward sloping, and driving 1. The main line is continuous, and comfort is low. driving comfort is high. 2. The distance between two interchanges Systematic traffic 2. The utilization efficiency of cannot meet the requirement of interlaced function road section is high, and it is transition of vehicle flow. All vehicles in relatively easy to build node the ring line can only run directly, and interchange. systematic traffic function cannot be realized. Ground road below the viaduct is Secondary main road and branch road are Regional traffic used, and regional traffic cut off by Second Ring Line, and regional organization organization is convenient. traffic organization is difficult. Construction of split interchange of Impact on No. 4 No impact basically Wuqing Fourth Trunk will has a big Track Line adverse impact on NO. 4 Track Line. 469mu of land to be requisitioned, 484mu of land to be requisitioned, 218000 208000 of buildings to be of buildings to be relocated, 15 enterprises to Impact of relocated, 11 enterprises to be be relocated, and 507 affected households resettlement relocated, and 349 affected households Impact on surface Reduces the accessibility of surface No impact basically channel channel Impact on Slight impact on landscape Some impacts on landscape landscape The program of viaduct construction is Basic conclusion Recommended selected

In a similar way, when selecting the locations of bus junction station and public parking lot, the design unit determined the following principles 1) Include station construction in the urban construction planning, and carry out reserve control for station location to avoid the impact of land acquisition and relocation. 2) If land occupation is necessary, try to occupy vacant land without relocation. 3) If relocation is unavoidable, select land sections with low building density and small affected population. Based on the above principles, two or three location programs were put forward for each station and submitted to resettlement division and environmental assessment department for field investigation and physical object survey, and the opinions of

8 different departments were collected for comprehensive evaluation to determine the final location program. For instance, for Sanjiantan bus junction station, Tianshunyuan initial and terminal station, Gangduhuayuan initial and terminal station and Jinyintan parking lot, vacant land is to be occupied for construction without relocation. In the original planning, programs for four parking lots of Jianghan Second Road, Qinjin Fourth Road, Jingwu Road and Guiyuan Temple were also presented. Between Dec. 2008 and Jan. 2009, the resettlement division of Wuhan Management Office for Foreign Fund Financed Urban Construction Project (WMOFFFUCP) organized field investigation for the parking lots in the planning to take a view of the impact of land acquisition and relocation as well as survey for affected population. According to the findings, for the construction of the four parking lots, there are some adverse factors: first, the four parking lots are located in the downtown area, surrounding roads are narrow and traffic organization is difficult, so it is improper to build social parking lots; second, they are located in the old urban area with high building density, so a large amount of relocation will be involved; third, affected residents have reservations concerning the building of parking lots.

Table 1-4 Analysis of social impact on the four parking lots in the original planning

Land Relocation Affected Affected Social opinions Item acquisition ) shops HH (mu) Guiyuan Temple 5.7 9572.5 17 108 Located in the parking building downtown area; inconvenient traffic organization; large impact of relocation Jianghan Second 6.6 8002.8 23 147 Located in the Road parking downtown area; building inconvenient traffic organization; large impact of relocation Qianjin Fourth 6.3 4970.7 17 196 Located in the Road parking downtown area; building inconvenient traffic organization; large impact of relocation Jingwu Road 10.4 8927.8 49 9 Inconvenient traffic parking lot organization; large impact of relocation

9 According to the results of investigation and research, the resettlement division of WMOFFFUCP delivered to the design department the opinions on the social impact of the construction of the foresaid parking lots. Finally, with comprehensive consideration, the project office removed the four parking lots from the project, and minimized the impact of resettlement. For another example, in the original design for the extension line of Jiefang Avenue, the width of the road is 60m. Jiefang Avenue is one of the most important traffic lines, and the width is over 50m. However, according to the program in which the designed width is 60m, for some sections, some high-rise buildings have to be removed. During the survey for resettlement, it was found that if relocation would be carried out according to the program, employee dormitories of Wuhan Vehicle Plant, Jiang’an District Railway Material Bureau and Jiang’an District Erqi House Management Office, and some other buildings would have to be removed, bringing a large impact. The resettlement division laid the situation before the engineering design department, and advised to build partial sections not conforming to the program. After comprehensive consideration, the design department accepted the suggestion of the resettlement division, and partially amended the design program. In this way, for the extension line of Jiefeng Avenue, the area of relocation is reduced by 18000 , the number of households to be relocated by 246, and the number of shops to be relocated by 44, minimizing the impact of the resettlement.

1.4.2 Measures to be adopted during land acquisition and relocation

Collect basic information, make an in-depth analysis of local socio-economic status, make feasible Resettlement Action Plan to ensure that that the displaced persons would not suffer from loss due to the implementation of the project. Encourage the participation and supervision of the public. Strength internal and external monitoring, set up highly efficient feedback mechanism and channels, minimize the period for the disposal of information to ensure the timely solution of problems occurring in the construction. Notify in advance displaced persons, arrange sites for relocation, compensate the loss of displaced persons, minimize the idling period, and provide jobs for employees of affected enterprises. During the relocation, get help and support from local governmental authorities to ensure the smooth implementation of resettlement, and to reduce the pressure and loss of displaced persons, institutions and enterprises.

10 1.4.3 Measures to be adopted during the construction

The following measures are to be adopted during the construction to mitigate impact: Reasonably make construction plan and arrange traffic, and minimize the impact of construction on the surrounding environment and traffic order. When excavating, all the factors shall be taken into full consideration. The excavation, laying of pipelines and backfilling shall be finished in the shortest time possible. For road crossing road with heavy traffic, the construction shall not be carried out in rush hours (for example the construction is carried out during the night to ensure smooth traffic flow in the day). Barbarian work manner is to be avoided. It is forbidden to destroy existing pipelines. Warning signs, signals and leading marks shall be set up for vehicles and pedestrians. After the completion of the construction, the site shall be cleared and opened to the traffic. Dredged spoil shall be timely carried out, and over loading is forbidden. Measures shall be taken to avoid spilling along the road. Before driving out, the tires of vehicles shall be flushed by high pressure water to avoid pollution of roads. The entrance of the construction site shall be timely cleaned. In the area within 200m away from residences of the civilians, the construction is forbidden from 22 o’clock in the evening to 8 o’clock next morning. And equipment with low noise shall be chosen for construction. For construction at night that affects citizens, measures shall be taken to eliminate or control noises, and temporary sound barrier equipment shall be set up around the construction site or near the residences of the civilians. The construction unit shall timely contact with local environmental sanitation department to clear and clean the wastes in the construction sites to make it clean and tidy.

1.5 Preparation and Progress of the Project

According to the demand of the preparation of resettlement work, the deadline of the construction of all subprojects of Wuhan Urban Transport Project (Phase II) is the end of December of 2008. The status quo of the construction deadline is taken as the reference of resettlement survey. The Resettlement Action Plan for Wuhan Urban Transport Project is prepared according to inventory of properties affected by land acquisition and relocation, socioeconomic investigation of affected persons, data of technical feasibility report. The preliminary feasibility study was finished in March

11 2009 and the feasibility report will be approved in September 2009, and it is estimated to be appraised and approved by the World Bank in September 2009. In the end of 2009, the loan agreement with the World Bank is to be negotiated and signed and the project is to be started.

1.6 Ownership of the Project

The owner of the project is the Urban Construction Fund Management Office of The People’s Government of Wuhan City.

1.7 Implementation of the Project

See table 1-5 for project preparation and implementation schedule.

12 Table 1-5 Schedule for the preparation and implementation of the project

Item Time Approval of Feasibility Report September 2009 Passing the project appraisal September 2009 Finishing initial design October 2009 Design of construction drawing December 2009 Implementation of the project December 2009 – 2003

1.8 Approval for Land Use and Relocation

See table 1-6 for the schedule for applying approval for land use and relocation.

Table 1-6 Schedule for applying for approval for land use and relocation

Items Time Examined and approved by Hubei Provincial Initiation of the project October 2008 Development and Reform Commission The Department of Land Pre-checking for land use September 2009 and Resources of Hubei Province The People’s Resettlement Action Plan September 2009 Government of Wuhan City

1.9 Laws Related to Compensation Rate

This Resettlement Action Plan is formulated by the resettlement division of WMOFFFUCP after fully negotiating with resettlement office of each district in Wuhan and affected households and institutions based on intensive investigation and research, and the resettlement policies therein are recognized by each relevant government department of Wuhan City. After the Resettlement Action Plan passes the evaluation of the World Bank and is approved by The People’s Government of Wuhan City, the policies and standards therein will be strictly conformed to during the implementation. The People’s Government of Wuhan City acknowledges that all policies and standards stated in this Resettlement Actions Plan will be in conformity with the policies of the World Bank concerning involuntary resettlement as well as with relevant laws and

13 regulations of the People’s Republic of China and Hubei Province and keep in line with relevant local policies and standards of Wuhan City.

2. Project Impact Analysis

2.1 Definition of project impact

Physical survey scope of project impact is the red line scope of road planning determined according to design organization of project planning, generally with 25m of both sides of road center, namely, all affected things within the range of 50m width belong to survey scope. Because the project is still in the process of optimization design while the physical survey for the resettlement is carried out, design organization of the project may carry out optimization design to the route and the date on land acquisition and relocation may be further adjusted. Resettlement office will modify and perfect Resettlement Action Plan according to adjustment data. project impact is defined as follows: (1) Permanent occupied land: all varieties of cultivated land and uncultivated land to be used permanently within the red line range of the project. Cultivated land mainly includes dry land, vegetable land, pond, and so on; uncultivated land mainly includes waste land, land used for construction, and so on. (2) Temporary land acquisition: all varieties of land to be used temporarily during construction period, which may be recovered after construction. (3) Relocated buildings: all buildings within the red line range of the project, mainly including framework-structure house, brick and concrete house, brick and wood house, simple house, etc. According to the proprietary rights of the buildings, they may be classified as private buildings and buildings of enterprises institutions. According the purposes of the buildings, they may be classified as private dwelling, houses used by enterprises and institutions, shops, etc. (4) Affected attachments to the ground: attachments to the ground within the red line range of the project, mainly including pool, fence, well, tomb, fruit tree, terrace, etc. (5) Affected public facilities: public facilities and public service facilities within the range of project impact. (6) Affected family households: any family household with land, buildings and attachments to the ground within the red line range of the project or affected directly.

14 (7) Affected communities: any community with land, buildings and attachments to the ground within the red line range of the project or affected directly. (8) Affected enterprises and institutions: any enterprise or institution with land, buildings and attachments to the ground within the red line range of the project or affected directly. (9) Displaced persons of the project: all the members of affected family households and affected enterprises and institutions form displaced persons of the project. (10) Affected labor: labors working in affected shops, enterprises or institutions or engaging in agricultural production on the land for acquisition. (11) Affected leaseholder: all the persons leasing affected buildings for living or business operation, based on the contracts. (12) Vulnerable groups: vulnerable groups refer to social groups in the residents that are easy to be harmed, lack of capability of responding social change, and stand in the unfavorable status due to their weak social participation capability, social security, disability, poverty and others, mainly including: solitary and widowed elder, female single-parent family, orphan, families covered by the lowest living security system, handicapped person and patent, and etc.

2.2 Project Impact Survey

From December 2008 to April 2009, with the help of Wuhan Municipal Design Institute and under the organization and coordination of Wuhan Management Office for Foreign Fund Financed Urban Construction Project, Center for Involuntary Resettlement Research, Wuhan University, associated with relevant staff of communities (villages) affected by subprojects made the resettlement survey in the regions affected by the subprojects. The resettlement survey consisted of two parts: one was survey of objects in land acquisition and relocation that maybe involved in project construction; the other was survey of social economy of the displaced persons and enterprises and institutions. In accordance with the involuntary resettlement policies of the World Bank, the land acquisition and relocation caused by the resettlement spots used for building resettlement houses for the families relocated due to the project will be brought into the impacts scope of the project and the unified resettlement policies will be implemented. The resettlement survey may be divided into three parts as follows: 1Literature survey a. Statistic of social economy of Wuhan city and the project area;

15 b. Local laws and regulations of the state, Hubei province and Wuhan city related to land acquisition and resettlement. 2Social economy background survey a. Survey of basic circumstances of affected families and vulnerable families in the area; b. Public opinions and suggestions; c. Survey of basic circumstances of affected villages in the area: population, labor force, industrial structure, and plantation and etc. 3Survey of affected objects in land acquisition and relocation a. Circumstance of land acquisition: position, category and area; b. Relocated buildings and other attachments to the land: position, category, and quantity and property rights; c. Category and quantity of various public facilities; d. Basic circumstances and affected situation of enterprises and institutions. The survey gathered the impacts situation of 201 affected families, 20 affected enterprises and institutions, 218 shops and one smallware market, carried out sampling survey on the basic situation of 108 families, initially knew basic impact resulted from the project and provided information for compiling of Resettlement Action Plan. Meanwhile, the survey also gathered statistical information of social and economic development of affected areas in recent years, relevant policies and local laws and regulations relating to land acquisition and house relocation in affected areas, important cases about land acquisition and relocation in recent years, information about exchange of newly-built apartment buildings and resold houses in the real estate market in Wuhan, and information about construction and supply of economically affordable houses in Wuhan. The statistics can be regarded as the reference to establishment of the compensation policy.

2.3 Impacts of Land Acquisition and Relocation

According to physical survey data and statistics for the resettlement implemented by the resettlement office for Wuhan Urban Transport Project (Phase II)and Center for Involuntary Resettlement Research, Wuhan University together, the basic data of the impacts of land acquisition and relocation for the project are as follows: Affected administrative units: the administrative units affected by Wuhan Urban Transport Project include four districts, i.e. Jiang’an District, Qiaokou District, Hongshan District and Dongxihu District, seven affected streets (townships), and 21 villages (communities).

16 Affected by relocation: Total area of relocated buildings: 245051 Households affected by relocation: 391 households and 1486 persons. Area of relocated private houses: 184247. Affected enterprises and institutions: total number is 21 and the area is 46937. Affect 218 shops with 556 employees. The area of relocation is 13867 . Affected by land acquisition: Area of requisitioned collectively-owned land: 517.66mu, including 153.91mu of cultivated land, and 363.94mu of non-cultivated land. Area of requisitioned state-owned land: 203.12mu.

Table 2-1 Summary of the impacts of land acquisition and relocation for Wuhan Urban Transport Project

Item Area of Area of Area of Number Number Households requisit requisiti relocation of of relocated/perso ioned oned () affected affected ns state- collectiv enterpris shops owned ely- es and land owned institutio (mu) land ns (mu) I. Shuidong Section 122.28 346.74 208015 10 121 349/1343 of Second Ring Line II. Extension Line of 69.5 123 37036 10 97 42/143 Jiefang Avenue III. Public transport 11.34 47.92 0 0 0 0 subproject Sanjintan bus 0 14.26 0 0 0 0 junction station Tianshunyuan initial 0 10.51 0 0 0 0 and terminal station Gangduhuayuan initial and terminal 11.34 0 0 0 0 0 station Jinyintan parking lot 0 23.15 0 0 0 0 Total 203.12 517.66 245051 20 218 391/1486

Note: In Shuidong Section of Second Ring Line, there are 349 relocated households, including 268 households (1072 persons) occupying private houses, and 81 households occupying the dormitory located in the community of the first subsidiary of provincial construction corporation. Ã

2.4 Impacts of Land Acquisition

According to the survey and statistics, total area of the land requisitioned for the project is 720.86mu, including 517.66mu of collectively-owned land and 203.12mu of state-owned land. Among the collectively-owned land requisitioned, the area of cultivated land (including vegetable land, fish pond and lotus pond) is 153.91mu, and non-cultivated land 363.75mu; the requisitioned state-owned land is totally the state- owned land used for construction.

2.4.1 Acquisition of rural collectively-owned land

The project is located at the junction of the main urban area and suburb, and the use of the collectively-owned land is quite different from the land use in other rural area of Hubei Province., so the modes to compensate and relocate pertinent villagers after the requisition of collectively-owned land are quite different. To be exact, the use of collectively-owned land in these areas is characterized by the features as follows: Firstly, most of the collectively-owned land is non-agricultural land, mainly including housing sites, collectively-owned land for construction, waste land and a few vegetable land and fish ponds. Secondly, the special locations of these villages bring about the frequent requisition of their land for reason of urban construction or for other reasons. Therefore, fish ponds and vegetable land haven’t been contracted to villagers as other villages are doing. The land is collectively-owned and tenanted to several households on a yearly basis. Thirdly, since the land is always collectively-owned, the compensation fund for the land requisition is at the disposal of the village. How to use the fund is subject to the decision at the villagers’ meeting. The tenants of the land may get the compensation for young crops and attachments to the ground and enjoy various favorable resettlement policies along with other villagers. Fourthly, in the light of the convention to use the compensation fund for land requisition by these villages and the village regulations which have been formed for long, the compensation fund is mainly used as living allowances and social security fund for villagers and also for job-training. According to the survey data, the situations of the collectively-owned land requisitioned by the project are:

Shuidong Section of Second Ring Line

For Shuidong Section of Second Ring Line, the area of collectively-owned land to be requisitioned is 346.74mu, including 5.4mu of vegetable land, 27mu of lotus pond and 314.34mu of collectively-owned land for construction, housing sites or waste land. The units affected by land acquisition include Chailin Village, Tieji Village, Heping Village and Donghu Village under Heping Street Office in Hongshan District, and Donghu Village in East Lake Scenic Area. The land to be requisitioned in Chailin Village, Tieji Village and Donghu Village is totally non-cultivated land, including land for construction, waste land, and so forth. In Heping Village, besides 4.73mu of housing sites, 5.74mu of vegetable land and 27mu of lotus ponds are also to be requisitioned. Downward extension line of Jiefang Avenue: For the extension line of Jiefang Avenue, the area of collectively-owned land to be requisitioned is 123mu, totally belonging to Xingfu Village in Houhu Street in Jiang’an District, including 98.3mu of fish pond, 12.7mu of vegetable land, 4.5mu of forest land, and 7.5mu of land for construction. Public transport subproject: For public transport subproject, the area of collectively-owned land to be requisitioned is 47.92mu, including 14.26mu used for Sanjintan bus junction station, 10.51mu for Tianshunyuan initial and terminal station, and 23.15mu for Jinyintan parking lot. The land to be requisitioned for Sanjintan bus junction station is the vacant land belonging to Xinyi Village in Houhu Street in Jiang’an District, the land for Tianshunyuan initial and terminal station is the lotus pond belonging to Yongfeng Village in Changfeng Township in Qiaokou District, and the land for Jinyintan parking lot is the vacant land belonging to Machi Village in Jiangjun Street in Dongxihu District.

Table 2-2 Ownerships and status quo of collectively-owned land to be requisitioned

Collectively- Ownership Status quo Item owned land to be requisitioned (mu) I. Shuidong Section 346.74 of Second Ring Line Chailin Village 64.90 Chailin Village in Collectively-owned land for Heping Street construction Tieji Village 94.71 Tieji Village in Heping Collectively-owned land for Street construction, waste land Heping Village37.13 Heping Village in Collectively-owned land for Heping Street construction, vegetable land, lotus pond Donghu Village 150.00 Heping Village in Collectively-owned land for Heping Street construction

II. Extension line of 123 Xingfu Village in Houhu Housing site, vegetable land, Jiefang Avenue Street in Jiang’an lotus pond District III. Public transport 47.92 subproject Jinyintan parking lot 23.15 Machi Village in Vacant land Jiangjun Street in Dongxihu District Sanjintan bus junction 14.26 Xinyi Village in Houhu Vacant land station Street in Jiang’an District Tianshunyuan initial 10.51 Yongfeng Village in Lotus pond and terminal station Changfeng Township in Qiaokou District Total 517.66

Table 2-3 Categories and quantity of collectively-owned land to be requisitioned (mu)

Cultivated land Non-cultivated Total land Item Vegeta ble Fish (lotus) Subtotal pond land I. Shuidong Section of 5.4 27 32.4 314.34 346.74 Second Ring Line Chailin Village in Heping Street in 0 0 0 64.9 64.9 Hongshan District Tieji Village in Heping Street in 0 0 0 94.71 94.71 Hongshan District Heping Village in Heping Street in 5.4 27 32.4 4.73 37.13 Hongshan District Donghu Village in Heping Street in 0 0 0 150 150 Hongshan District II. Downward extension 12.7 98.3 111 12 123 line of Jiefang Avenue Xingfu Village in Houhu 12.7 98.3 111 12 123 Street in Jiang’an district

III. Public transport subproject 10.51 0 1051 37.41 47.92

Jinyintan parking lot

Machi Community in Jiangjun Street in Dongxihu District 0 0 0 23.15 23.15 Sanjintan bus junction

station Xinyi Village in Houhu Street in Jianghan District 0 0 0 14.26 14.26 Tianshunyuan initial

and terminal station Yongfeng Village in Changfeng Township in Qiaokou District 10.51 0 10.51 0 10.51 Total 28.61 125.3 153.91 363.75 517.66 Source: Survey for land acquisition and relocation for Wuhan Urban Transport Project

2.4.2 Acquisition of state-owned land

Besides 517.66mu of rural collectively-owned land, another 203.12mu of state- owned land used for construction has to be requisitioned. See Table 2-4 for details.

Table 2-4 Quantity and status quo of state-owned land to be requisitioned

item Quantity (mu) Description Along Luojiagang, controlled land of water I. Shuidong Section of affairs department, and land occupied by the 122.28 Second Ring Line first subsidiary of provincial construction corporation II. Extension line of 69.5 Buildings of enterprises along Jiefang Avenue Jiefang Avenue III. Pubic transport 11.34 subproject Gangduhuayuan initial and terminal 11.34 Controlled land use for planning, station Total 203.12 2.5 Impacts of Relocation

According to the survey data, the total area of various buildings to be relocated for Wuhan Urban Transport Project is 245051 , including: 1) 184247 of dwelling houses, 2) 46937 of buildings of enterprises and institutions, and 3) 13867 of various shops. See Table 2-5 for areas of buildings to be relocated.

Table 2-5 Areas of buildings to be relocated for Wuhan Urban Transport Project ( )

Enterprise and Subproject Dwelling house Shop Total institution Shuidong Section of 166852 33552 7611 208015 Second Ring Line Downward extension 17395 13385 6256 37036 line of Jiefang Avenue Total 184247 35737 13867 245051

From the perspective of building structure, the area of framework-structure buildings is 525 ,that of brick-concrete buildings is 215912 , that of brick-wood buildings is 21745 , and that of simple buildings is 6869 . See Table 2-6 for details.

Table 2-6 Categories of buildings to be relocated for Wuhan Urban Transport Project ( )

Framewor Brick-concrete Brick-wood Simple Total

k- structure Private 0 170095 10557 3595 184247 dwelling house Enterprise and 525 36587 7750 2075 46937 institution Shop 0 9230 3438 1199 13867 Total 525 215912 21745 6869 245051

2.5.1 Relocation of private houses

According to the survey data, the total area of private houses to be relocated for Wuhan Urban Transport Project is 184247involving 391 households and 1486 persons. Shuidong Section of Second Ring Line involves 349 households, 166852, and Jiefang Avenue involves 42 households, 17395 . From the perspective of building structure, the area of brick-concrete buildings is 170095 , that of brick-wood buildings is 10557 , and that of simple buildings is 3595 . See Table 2-7 for details.

Table 2-7 Types and areas of private houses to be relocated

Number of Area Subproject households/ Brick- Total Brick-wood Simple persons concrete Shuidong Section of 158795 5985 2072 166852 349/1343 Second Ring Line Downward extension 11300 4572 1523 17395 42/143 line of Jiefang Avenue Total 391/1486 170095 10557 3595 184247

2.5.2 Relocation of buildings of enterprises and institutions

According to the survey data, 46937 of buildings of 21 enterprises and institutions have to be relocated for the project. Shuidong Section of Second Ring Line involves 10 enterprises and institutions, with 33552 of buildings to be relocated, and Jiefang Avenue involves 11 enterprises and institutions, with 13185 of buildings to be relocated.

Table 2-8 Buildings of enterprises and institutions to be relocated Unit:() Framewo Brick- Brick- Earth- rk- Simple Total concrete wood wood Name of organization structure I. Shuidong Section of Second Ring Line Hongjin Recreation City Chailin Real Estate Company Hubei No. 1 Construction Company Yuanlong Chemical Plant Jingang Furniture Factory Construction machines and tools leasing department, Hongshan District, Wuhan Compensator Expansion Joint Hubei Co., Ltd. Chailintou Village Tieji Village Donghu Village II. Downward extension line of Jiefang Avenue Jiang’an District Education 391 391 Commission Erqi Hospital 504 504 Registration point of Lanjian 60 60 Driving School Agricultural Machinery Market of Hubei Agricultural 18 18 Machinery Group Erqi Filling Station of 84 84 Sinopec Guardhouses at railway 98 98 crossings Danxi Filling Station of 90 90 Sinopec Wuliang Equipment 130 130 Company No. 15 Engineering Company of Second Shipping Board of 525 China Harbor Jiang’an Vehicle Factory 11200 Xingfu Village 150 135 285

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2.5.3 Affected shops

According to the survey data, for Wuhan Urban Transport Project, there are 218 shops to be relocated, and the relocation area will be 13867 and the number of affected employees 556. See Table 2-9 for details of shops to be relocated.

Table 2-9 Shops affected by Wuhan Urban Transport Project

Numbe Area ( ) Numbe r of Subproject Frame Brick- r of emplo Brick-wood Simple Total shops yees work concrete Shuidong Section of 7611 3814 2598 1199 Second Ring Line 121 306 0 Downward extension 6256 97 250 0 5416 840 0 line of Jiefang Avenue Total 218 556 0 9230 3438 1199 13867

2.5.4 Unlicensed buildings affected by the projects

According to the survey data, for Wuhan Urban Transport Project, there are 8349 of unlicensed buildings to be relocated along Luojiagang in Shuidong Section of Second Ring Line. These unlicensed buildings are temporary buildings built on the idle state- owned land for construction in Chailin Village and Tieji Village. Among them, Hongjin Recreation City has a large area, 5224 , and is of brick-concrete structure, and the other buildings are all of brick-wood or simple structure. The area of brick-wood buildings is 1223including 965 in Chailin Village and 267 in Tieji Village, and the area of simple buildings is 1902 , including 99 in Chailin Village and 1803 in Tieji Village. These buildings are mainly used by villagers for storing waste goods and timbers.

2.5.5 Affected attachments

The attachments affected by the project include: enclosure wall, terrace, ammeter, water meter, fixed telephone, air conditioner, wide band, well, etc.

Table 2-10 Attachments affected by Wuhan Urban Transport Project

Fixed Air AmmetWater CCT Netw Enclosur Subproject telepho conditi Well Terrace er meter V ork e wall ne oner Shuidong Section of 160 396 387 228 78 431 2500 10 3500 Second Ring Line

Second Ring Line Downward extension 547 0 234 line of Jiefang Avenue 455 578 534 300 138 346 Total 615 974 921 528 216 777 3047 10 3734 2.6 Affected Vulnerable Groups

2.6.1 Determination of affected vulnerable groups

Vulnerable groups refer to those of displaced persons who are easiest to be hurt and have no ability of adapting to the changes brought by the project construction. Vulnerable groups are mainly divided as follows: Lonely elderly: the single elderly over 65 years old and without the person fulfilling statutory duty of maintenance. Single-parent family: the head of the family is single and has underaged child. Orphan: the children without parents and younger than 16 years old. Poor family: the urban families with Collecting Certificate of Lowest living standard security of Wuhan Urban Residents, and rural poor households that have been specially determined. The disabled: the persons, in psychology, physiology or body constitution, having some tissue or function lost or off-normal, or the ability of participating in some activity in the normal way lost totally or partially (subject to the holding of Disabled Person Certificate of the People’s Republic of China). Other families having special difficulties. The determination of vulnerable groups is carried out in accordance with relevant policies and regulations and on the basis of field survey. In the implementation process, the resettlement office will confirm it through door-to-door interview, neighboring interview and proving of community resident committee.

2.6.2 Affected families of vulnerable groups

According to the survey data, there are 16 affected families of vulnerable groups with 48 members. See Table 2-11 for details.

Table 2-11 Affected vulnerable groups

Number of Name family Difficulty members Both her son and daughter-in-law are Feng Sizhen 5 unemployed, and their child is at school. Both he and his wife are unemployed, and their Huang Xianwu 5 child is at school and parents are sickly. He and his two sons are unemployed, depending Gong Jusheng 6 on his wife s pension. He is sickly, and his wife is a half-time worker Yu Yingjie 3 and child is at school. Her husband has passed away, and her two sons Shen Jinlian 3 are not officially employed. Ke Changgui 3 Unemployed, without pension. Unemployed; his daughter is disabled due to Dai Helin 3 disease. Unemployed, divorced; his daughter is at a Wu Haodong 2 vocational school. Both he and his wife are unemployed and Wu Haojun 3 sometimes work as half-time workers, and their son is at a vocational school. Unemployed; his wife doesn t have a registered permanent residence in Wuhan. They He Guofu 3 are selling box rice, and their daughter is at a vocational school. Solitary, her daughter comes to take care of her Hu Meizhen 2 every day. Cai Wenhao 3 Disabled Yu Ming 1 Seriously ill Zhao Liping 2 Unemployed Hu Boyun 1 Disimprisoned Both husband and wife are unemployed, and Yang Qiping 3 their child is at school.

2.7 Affected Infrastructures

Only a few infrastructures are affected by the project, including some low-voltage illumination electric poles, high-voltage power transmission electric poles, transformers, etc., which are all distributed in Shuidong Section of Second Ring Line and Jiefang Avenue. There are 1124 380V illumination electric poles and 13 220V high-voltage power transmission tower foundations in total affected by the project.

3. Analysis on Socioeconomic Survey of project impact

3.1 General Introduction to Socioeconomic Development of the Regions Affected by the Project

Wuhan, as the capital city of Hubei province, is the biggest city in the central China region and a metropolis at the middle and lower reaches of Yangtze River. It is also one of the seven big central cities of China. Now there are 13 districts under it with a total area of 8,494.41km2. The built-up area in the main city proper is about 394km2. According to the latest statistics of 2007 by Wuhan municipal government, the gross population of Wuhan city is 9.79 million, of which 5.27 million is nonagricultural population. In 2007, the gross value of production of the whole city is 314.15 billion Yuan, being the 13th city in China whose economic scale is over 300 billion. Per capita GDP of the whole city reaches 37,904 Yuan, which, converted according to the exchange rate of that year, already amounts to 4,700USD. In 2007, per-capita disposable income of urban residents is 14,357.64 Yuan and per-capita net income of peasants is 5,371 Yuan. Jiang’an District locates at the north bank of Yangtze River, adjacent to Huangpi District in the east and bordering Jianghan District in the east, facing Wuchang District and Hongshan District in the south across the river, and connected to Dongxihu District in the north. Its area is 64.24km2 and the population is . The pillar industry is the modern service industries represented by commerce and trade, finance and insurance, modern logistics, information and communication. The municipal industrial economy founded on Jiang’an Economic Development Zone and Dijiao Municipal Industry Park becomes the important platform for the district’s economic development. In 2007, the gross value of production of the whole district is 19 billion Yuan, the fixed asset investment of the whole society is 11.7 billion Yuan and the total volume of retail sales of consumer goods is 18.656 billion Yuan. The financial revenue of the whole district is 3,363 million Yuan and the local financial revenue is 1,110 million Yuan. Per capita disposable income of urban residents is 13,702 Yuan. Qiaokou District is one of the seven downtown districts of Wuhan city. It neighbors Jianghan District in the east, linking to Dongxihu District in the west and in the north, facing Hanyang across Hanjiang River in the south. Its area is 42.12km2 with a permanent population of 680,000.

Hongshan District stands on Yangtze River and at the bank of East Lake, being a downtown district connecting the city center and the suburb. The whole district takes up an area of 570km2 and has a population of 826,000. The permanent population exceeds 1 million, living in 8 streets and 6 townships under the district. In 2007, the gross value of production of the whole district is 22.49 billion Yuan, the value added of industrial enterprises above designated size is 3.55 billion Yuan, the financial revenue is 2.65 billion Yuan, and the district’s financial revenue is 7,190 million Yuan. Per capita disposable income of urban residents is 14,698 Yuan and per-capita net income of peasants is 6,901 Yuan. Dongxihu District is situated at the left bank of Yangtze River, in the northwestern outskirts of Wuhan city, and at the junction of Hanjiang River, Hanbei River and Fuhuan River. The area of the whole district is 439km2 with a population of 374,000. In 2008, the gross value of production of the district was 13.4 billion Yuan, and per capita territorial area was 35,260 Yuan; the total financial revenue was 3.87 billion Yuan and the district’s financial revenue was 1.49 billion Yuan, the general budgeting revenue was 1.27 billion Yuan, and per capita net income of peasants was 6,587 Yuan.

Table 3-1 General situation of socioeconomic development of the regions affected by Wuhan Urban Transport Project (2007)

Jiang’an Qiaokou Affected regions Hongshan District Dongxihu District District District Land area km2 64.2 46.4 509.0 439.2 Population 10000 75.5 72.3 110.7 37.4 Population density persons/km2 10261 11563 1943 595 per capita disposable income of urban 13701.6 13748.5 146898.0 residents (Yuan) Per-capita net income of rural resident 6901 5606 (Yuan) Gross value of production (hundred million 192.2 197.7 224.9 103.5 Yuan) Financial revenue (hundred million Yuan) 11.1 7.4 7.2 11.8 Economic growth rate ( ) 15.5 14.5 15.0 16.6 Source: Wuhan Statistics Bureau (Wuhan Socioeconomic Statistical Yearbook 2008)

3.2 General Situation of Affected Villages (Communities)

The resettlement survey is carried out on the general situation of the affected communities and villages. The villages affected by the land acquisition and relocation of Phase II of Wuhan Urban Transport Project are: Chailin Village, Tieji Village,

Heping Village and Donghu Village of Heping Street of Hongshan District, and Xingfu Village of Houhu Street of Jiang’an District. Chailin Village Shuidong Section of the Second Ring Line needs removing 46 families’ private residences of Chailin Village. Meanwhile, some houses of Chailin Real Estate Company, which is a collectively-owned enterprise, also need being relocated. Chailin Village is a typical village within the city. In 1990s, the “Chailin Group” was established. Currently, the “village within the city” reconstruction is ongoing and it is to be reconstructed as “Xiamamiao Community of Heping Street”. The village has 566 family households and a population of 2,748. It is situated in the downtown, which has no land used for agricultural production. All the incomes of villagers are from nonagricultural production operations. Tieji Village Tieji Village is also a typical village within the city, but with stronger economic strength among villages of Heping Street. Currently it carries out the “village within the city” reconstruction. The whole village has 868 family households and a population of 3,706. They are mainly employed in nonagricultural production operations. The junk market, the market for fire suppression products and the furniture factory established by the village become the main economic pillars. Heping Village Without exception, Heping Village is also a typical village within the city, but it is one of the most developed villages of Heping Street. Currently it carries out the “village within the city” reconstruction. The whole village has 552 family households and a population of 2,162. They mainly engage in nonagricultural production operations on the ground of convenient local transportation conditions and its favorable geographic location that is close to the downtown. Various markets in the village are the main economic pillars.

3.3 Analysis on Basic Information of Affected Families

In order to deeply understand basic information of affected families and provide reasonable resettlement program with reference, during the process of resettlement survey, for affected private households, sampling survey is carried out and survey form of family information is to be completed (see Attachment for survey from). Survey results involve basic information of 108 families. See Table 3-2 for basic characteristics of the investigated.

Table 3-2 Basic characteristics of displaced persons of Wuhan Urban Transport Project Unit: household, person, % Shuidong Characteristics Section Jiefang Avenue Total Households 34 74 108 Population 122 222 344 Male 54.37 51.50 52.52 Female 45.63 49.50 48.13 Total 100.00 100.00 100.00 0-16 22.60 19.64 20.69 16-60 67.56 70.05 69.17 60- 9.84 10.31 10.14 Total 100.00 100.00 100.00 Average Age 33.96 38.54 36.92 Han Nationality 100.00 99.70 99.81 Tujia Nationality 0.00 0.20 0.13 Others 0.00 0.10 0.06 Total 100.00 100.00 100.00 Illiteracy 3.32 3.40 3.37 Primary school 25.21 9.42 15.02 Junior middle school 34.13 39.33 37.49 Senior middle school 22.75 28.73 26.61 College and above 14.59 18.41 17.06 Other 0.00 0.71 0.46 Total 100.00 100.00 100.00 Unmarried 18.17 17.92 18.01 Currently married 71.46 72.08 71.86 Bereft of spouse 2.42 4.05 3.47 Divorced 4.83 2.94 3.61 Others 3.12 3.01 3.05 Total 100.00 100.00 100.00 Worker 15.63 23.64 20.80 Agriculture 3.27 0.00 1.16 Culture, education and sanitation 5.70 13.94 11.02 Institutions 16.40 4.24 8.55 Others 59.00 58.18 58.47 Total 100.00 100.00 100.00 Student at school 13.90 15.37 14.85 Doing the housework 46.08 37.54 40.57 Doing nothing 25.77 24.02 24.64 Retired 8.20 13.27 11.47 No working ability 5.15 7.35 6.57 Others 0.90 2.45 1.90 Total 100.00 100.00 100.00 In order to understand dwelling situation of affected families, the survey on types, building time, property rights, sanitary conditions and energy utilization of dwelling houses of affected families is carried out. See Table 3-3 for results.

Table 3--1 Dwelling situation of affected households Unit: % Type Shuidong Section Jiefang Avenue Total Building 98 99.5 99.03 Single story building 2 0.5 0.97 Others 0 0 0.00 Total 100 100 100.00 Buildingup time Shuidong Section Jiefang Avenue Total 15 years ago 20.1 90 67.99 10-15 years ago 35.47 2 12.54 5-10 years ago 10.23 3.45 5.58 Recent five years 34.2 4.55 13.88 Total 100 100 100.00 House property Shuidong Section Jiefang Avenue Total Self-owned 87.57 86.46 86.81 Leasing the public or 12.43 13.54 13.19 the institution Total 100 100 100.00 Having separate Shuidong Section Jiefang Avenue Total toilet or not Yes 99 12.25 39.56 No 1 87.75 60.44 Total 100 100 100.00 Kitchen Shuidong Section Jiefang Avenue Total Exclusive use 100 3.45 33.85 Sharing 0 95 65.09 No 0 1.55 1.06 Total 100 100 100.00 Energy Shuidong Section Jiefang Avenue Total Coal 45.76 67.85 60.90 Oil liquefied gas 24.5 20.78 21.95 Piping coal gas 10.8 0.76 3.92 Others 18.94 10.61 13.23 Total 100 100 100.00

From the survey results, there are obvious differences between the dwelling conditions of affected families in the Shuidong Section and the conditions of those in the Jiefang Avenue. In the former area, most of the affected are self-owned houses of villagers of Chailin Village and Tieji Village. The housing conditions of these families are: firstly, they have complete household appliances and facilities and with large

building area, which is generally more than 300 and averagely above 400 ; secondly, the majority of the relocation households own more than one houses, in other words, the relocation basically will not affect their dwelling conditions. However, as for the affected families in the Jiefang Avenue, besides the residents of Xingfu Village in the Houhu Street have the similar dwelling conditions with the Shuidong Section, other residents mostly live in the dormitories of enterprises on the state-owned land, such as dormitory of Jiang’an Vehicle Factory and dormitory of Materials Company of Railway Bureau. These buildings are old with small area and incomplete sanitation facility, so the residents there are expecting to improve their dwelling conditions by the relocation of this project and they expressed their intention to accept. The impacts of the relocation on the production and operation of the affected families are mainly reflected in two aspects; first, impacts of land acquisition on vegetable garden and lotus pond operators; second, affect the operations of shops along streets. As for land acquisition, as stated above, only some vegetable gardens and lotus ponds of Heping Village and Xingfu Village will be requisitioned. These gardens and ponds are collectively-owned and rent to people from other places to operate. Only a small portion of vegetable gardens are used for planting the vegetables for meeting own needs. 90% of incomes of these families are from nonagricultural operations. Therefore, the land acquisition of this project has slight impacts on the income of agricultural production of the affected families along the line. It is acceptable to directly give economic compensations to the collective and leaseholders of the requisitioned land according to the compensation policies in this plan. Most of shops at both sides of the road are attached to main buildings or reconstructed by dwellings. Generally there are 2-3 operators. Their normal operation will be affected during the construction period, but after it is completed, since the transportation condition and business environment will be improved due to the construction, their business operations will recover in no time. In order to reduce the impacts of the project construction on these shops, shorten the duration and lessen the impacts, this project will, during the construction, take some optimized construction organization measures: first, divide construction operation in stages, only remove shops at the necessary stage, and shorten the period of business suspension; second, in the course of construction, leave necessary pedestrian path for the shops that will not be removed thus to maintain their normal business operations.

3.4 Impacts on Ethnic Minorities and Social Gender

According to census information supplied by Wuhan Bureau of Statistics, there are many nationalities including Han, Man, Hui, Meng and others, among which, the population of Han nationality is over 99%. According to socioeconomic survey for resettlement, 99.65% of displaced persons belong to Han nationality, and there is no community with concentrated ethnic minorities within impacts scope of Wuhan Urban Transport Project. Therefore, the problem about the impacts on ethnic minorities doesn’t exist. According to sampling survey of resettlement organization, 48.45% of displaced persons are female. Generally speaking, educational level of women in affected regions is relatively low. Education level of most rural women is below junior high school, and illiterate and semi-illiterate women have a higher proportion. According to sampling survey, 7% of women are illiterate or semi-illiterate; 26% have accepted education in primary school, 54% have studied in junior high school, 12% graduated from senior high school or secondary technical school, and only 1% have accepted higher education. From the age structure of surveyed women, the education level of women above the age 60 is lower, among whom, only 16% received junior high school education and above, 60% have accepted education in primary school, and 24% are illiterate or semi-illiterate; among the women aged 16 40, only 2% are illiterate or semi-illiterate, 15% have accepted education in primary school, 34% have studied in junior high school, 33% graduated from senior high school and 16% have accepted higher education. The impacts on employment of displaced persons is mainly in the operators of affected shops. Seen from the survey result, 80% of shop operators are women below the age 45. As the project continues, more shops with large areas will be established at the both sides of the road and around parking lots, which will increase employment and thus be favorable for women’s employment. As to the impacts of relocation, the residents will obtain better dwelling conditions. For the women bearing most of labor service of the families, improvement of dwelling condition and environment may reduce their labor burden. In particular, the construction at the Shuidong Section will directly improve the environment along Luojiagang, so it is an opportunity for residents along the line to improve their dwelling conditions, and it is especially so for women who bear most of housework of the family. Seen from overall impacts of the project, the construction of the project will significantly improve urban transport situation of Wuhan. For the women more relying on urban public transport, the project will provide convenience for the transport of

women and improve the dwelling conditions of relocation households as well as the quality of women’s life and this is a positive impacts.

4. Laws, Regulations and Policies

The resettlement work for Wuhan Urban Transport Project will strictly follow relevant laws, regulations and policies of the People’s Republic of China, Hubei province and Wuhan City (as site of the project), and the plan and implementation also will completely comply with the World Bank’s policies on involuntary resettlement.

4.1 Main laws, Regulations and Policies to Follow

4.1.1 Relevant laws and provisions enacted by the central government

The Law of Land Administration of the People’s Republic of China, was implemented in Jan., 1999, and the revision was implemented on Aug. 28, 2004. Law of the People's Republic of China on Urban Real Estate Administration, took impacts on Jan. 1, 1995. Regulations on the Administration of Urban House Relocation, took impacts on Nov. 1, 2001. Guiding Opinions on Appraisal of Urban House Relocation, took impacts on Jan. 1, 2004. Law of the People's Republic of China on Urban Real Estate Administration, took impacts on Jan. 1, 1995. Decisions on Deepening the Reform and Intensifying Land Administration, was issued by the State Council on Oct. 21. Circular of the State Council on Intensifying the Land Control, was issued on Aug. 31, 2006. Real Right Law of the People's Republic of China, took impacts on Oct. 1, 2007. Provisions of the People's Republic of China on the Disclosure of Government Information, took impacts on May 1, 2008. Decision of the State Council on Deepening the Reform of Land Management, No. 28 File, 2006.

4.1.2 Laws, regulations and policies enacted by the People’s Government of Hubei Province

Implementation Measures of Land Administration of Hubei Province (Mar. 22, 1999) Guiding Opinions of the Ministry of Construction on Appraisal of Urban House

Relocation (Dec 1, 2003) Guiding Opinions of Ministry of Land and Resources on Improving Land Acquisition Compensation and Resettlement System (Nov. 3, 2004) Notice of People’s Government of Hubei Province on Intensifying Land Acquisition Administration and Protecting Lawful Rights of Farmers (Feb. 27, 2005) Regulations of Forest Land Administration of Hubei Province Notice of the General Office of Hubei Provincial People’s Government on Enhancing the Housing Site Management in Rural Areas Implementation Measures of Administration of Urban House Relocation of Hubei Province

4.1.3 Laws, regulations and policies enacted by Wuhan Municipal Government

Measures of Compensation and Resettlement on Collectively-owned land Acquisition of Wuhan City (Feb. 1, 2004) Implementation Measures of Administration of Urban House Relocation of Wuhan City (Mar. 1, 2002) Administration Measures of Collectively-owned land Acquisition and House Relocation of Wuhan City (Dec. 22, 2003) Administration Measures of Urban Planning of Wuhan City (Jul. 3, 1991) Opinions of Wuhan Municipal Committee of the CPC and Wuhan Municipal Government on Actively Advancing Comprehensive Renovation of “Urban Village” (Sep. 10, 2004) Opinions of the General Offices of Municipal Committee of the CPC and Wuhan Municipal Government on Accelerating the Land Relocation for Key Projects, (Jun.8, 2009)

4.1.4 World Bank’s Policies on Involuntary Resettlement

The World Bank’s OP4.12 of Involuntary Resettlement and appendices took impacts on Jan. 1, 2002 The World Bank’s BP4.12 of Involuntary Resettlement and appendices took impacts on Jan. 1, 2002

4.2 Summary of Main Laws, Regulations and Policies

4.2.1 Summary of relevant ministerial and provincial laws and regulations

1. Provisions on ownership and right of use of land The People’s Republic of China resorts to a socialist public ownership i.e. an ownership by the whole people and ownerships by collectives, of land. Land in urban districts shall be owned by the State. Land in the rural areas and suburban areas, except otherwise provided for by the State, shall be collectively owned by peasants including land for building houses, land and hills allowed to be retained by peasants. (Article 2 and Article 8 of The Law of Land Administration of the People’s Republic of China) In order to meet the demands of public interests, it is allowed to requisition lands owned collectively, houses owned by entities and individuals or other realties according to the statutory power limit and procedures. When requisitioning land owned collectively, it is required to, in accordance with law and in full amount, pay land compensation fees, placement allowance, compensations for the above-ground fixtures of the lands and seedlings and other fees, arrange for social security fees for the farmers with land requisitioned, guarantee their livelihood and protect their lawful rights and interests. When requisitioning the houses owned by entities and individuals or other realties, it is required to compensate for demolishment and relocation in accordance with law and protect the lawful rights and interests of the owners of the requisitioned realties; when requisitioning the individuals’ residential houses, it is required to guarantee the housing conditions of the owners of the requisitioned houses. (Article 42 of Real Right Law of the People's Republic of China)

2. Provisions on compensation standard of land acquisition In requisitioning land, compensation should be made according to the original purposes of the land requisitioned. Compensation fees for land requisitioned include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the requisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land requisitioned by the per capital land occupied of the unit whose land is requisitioned. The resettlement fees for each agricultural person to be resettled shall be 4~6 times the average annual output value of the three years preceding the acquisition of the cultivated land. But the maximum resettlement fee per hectare of

land requisitioned shall not exceed 15 times of the average annual output value of the three years prior to the requisition. (Article 47 of The Law of Land Administration of the People’s Republic of China) Local people’s governments at and above county level shall take impactsive measures to make sure the living level of farmers whose farmland is requisitioned won’t be decreased for land acquisition. It is required to, in accordance with law and in full amount, pay land compensation fees, placement allowance, compensations for the above-ground fixtures of the lands and seedlings and other fees. The people’s governments of provinces, autonomous regions, municipalities provide farmers for land compensation fees and placement allowance according to current laws and regulations but can’t keep their original living standard and can’t afford the social security fee of farmers who lose farmland due to land acquisition shall be approved to increase placement allowance. If the sum of land compensation fees and placement allowance reaches regulated upper limit but can’t keep the original living standard of farmers whose farmland is requisitioned, the local governments may use the income from the compensated use of the state-owned land for compensation. Provinces, autonomous regions and municipalities shall establish and promulgate the uniform compensation standard by annual output value or district-based comprehensive land price. The requisitioned land of the same level shall be compensated for the same price. The National Key Construction Projects shall take the land acquisition fee in full amount into rough calculation. (Article 12 of Decisions on Deepening the Reform and Intensifying Land Administration by the State Council) Hubei province is divided into six areas to establish uniform standard for minimum annual output and minimum placement allowance. The land acquisition compensation of all kinds of non-agricultural construction projects shall not lower than corresponding compensation rate. The lowest compensation rate for requisitioned farmland in Class I, II, III, IV, V, VI areas in the first three years are respectively 1800 Yuan, 1200 Yuan, 1000 Yuan, 900Yuan, 800Yuan and 700Yuan for every mu. The lowest placement allowance standard for every requisitioned farmer in Class I, II, III, IV, V, VI areas are respectively 18000Yuan, 10000Yuan, 8500RM, 7600 Yuan, 6800 Yuan and 6000 Yuan. (Notice of People’s Government of Hubei Province on Intensifying Land Acquisition Administration and Protecting Lawful Rights of Farmers)

Table 4-1 Areas classification in Hubei for the lowest standard of land acquisition compensation

Lowest Lowest compensation resettlement Class rate by annual compensation District output value rate (Yuan/mu) (Yuan/person) Main urban area of Wuhan City: Jiang’an District, Jianghan District, Qiaokou District, Hanyang District, I 1800 18000 Wuchang District, Hongshan District, Qingshan District, East Lake Scenic Area Dongxihu District of Wuhan City, Huangshigang District of Huangshi City, Xiangcheng District of Xiangfan City, II 1200 10000 Xiling District of Yichang City, Wujiagang District of Yichang City, Zhangwan District of Shiyan City, Maojian District of Shiyan City Jiangxia District of Wuhan City, Caidian District of Wuhan City, Hannan District of Wuhan City, Huangpi District of Wuhan City, Xinzhou District of Wuhan City, Dianjun District of Yichang City, Xisaishan District of III 1000 8500 Huangshi City, Shashi District of Jingzhou City, Jingzhou District of Jingzhou City, Duodao District of Jingmen City, Echeng District of Ezhou City, Xiantao City, Qianjiang City, Xialu District of Huangshi City, Tieshan District of Huangshi City, Daye City, Zhijiang City, Dangyang City Dongbao District of Jingmen City, Shayang County, Xiangyang District of Xiangfan City, Tianmen City, Xiaonan District of Xiaogan City, Danjiangkou City, Zaoyang City, Yicheng City, Jiangling County, Shishou City, Songzi City, Zengdu District of Suizhou City, IV 900 7600 Zhongxiang City, Jingshan County, Huangzhou District of Huanggang City, Macheng City, Wuxue City, Huarong District of Ezhou City, Xian’an District of Xianning City, Chibi City, Yingcheng City, Anlu City, Hanchuan City, Yunmeng County, Yiling District of Yichang City, Yidu City, Xishui County, Laohekou City Honghu City, Gongan County, Jianli County, Liangzihu District of Ezhou City, Jiayu County, Guangshui City, Eshi City, Jianshi County, Yunxian County, Nanzhang County, V 800 6800 Xiaochang County, Dayi County, Hongan County, Huangmei County, Yuanan County, Zigui County, Yangxin County

Zhushan County, Fangxian County, Yunxi County, Zhuxi County, Luotian County, Yingshan County, Tuanfeng County, Tongcheng County, Chongyang County, Tongshan County, Xingshan County, Wufeng Tujia VI 700 6000 Autonomous Region, Badong County, Laifeng County, Hefeng County, Xianfeng County, Xuanen County, Baokang County, Lichuan City, Shennongjia Forest Region

The entities and individuals that requisition and occupy forest land shall pay for forest land and forest compensation fee, placement allowance and forest vegetation recovery payments as required. For temporary use of forest land, it is required to pay for forest land and forest compensation fee and forest vegetation recovery payments according to related provisions, and reclaim the used forest land. The establishment, reconstruction, expansion of electrical installations and communication facilities on forest land and other activities to cut down forest shall pay for forest compensation fee and forest vegetation recovery payments. (Article 21 of Regulations on Forest Administration of Hubei Province) 3. Provisions on resettlement approaches of farmers whose farmland is requisitioned People’s governments at and above County level shall formulate concrete measures to guarantee the long-term means of living of farmers whose farmland is requisitioned. For projects with stable earning, farmers may become a shareholder through legally approved right to use construction land. Within planned urban area, local people’s government shall bring farmers who lose farmland due to land acquisition into urban employment system and establish social security system. Outside planned urban area, to requisition collectively-owned land, the local governments shall remain necessary farmland for farmers whose farmland is requisitioned within local administrative area or arrange corresponding jobs; make resettlement in host community for farmers without land and basic living conditions. (Article 13 of Decisions on Deepening the Reform and Intensifying Land Administration by the State Council) The farmers whose farmland is requisitioned may select the follow resettlement approaches: (1) Placement on agricultural production. The acquisition of collectively- owned land outside planned urban area should be made through rural collective mobile land the land contractors voluntarily returned, added farmland due to land circulation and land development and arrangement, firstly making sure the farmers whose farmland is requisitioned have necessary farmland to continue agricultural production. (2)

Placement on re-employment. Actively create conditions to provide free labor-skill training for the farmers whose farmland is requisitioned and arrange jobs. Under the same condition, priority of employment should be given to farmers whose farmland is requisitioned by requisitioning units. Town Planning in a collective farmers land for land acquisition should be caused landless peasants into urban employment system, and establishing a social security system. For the acquisition of farmers’ collectively-owned land within planned urban area, farmers who lose farmland due to land acquisition should be brought into urban employment system with social security system established. (3) Placement on shares dividends. For the land with long-term stable earnings at project sites, on a voluntary basis of farmers, after negotiation with requisitioning units, requisitioned rural collective economic organizations may buy shares by compensation allowance or convert right of use of construction land into shares. By signing contract with rural collective economic organizations, farmers get returns through preference share. (4) Resettlement in Host Community. The farmers who lose farmland due to land acquisition but can’t be provided with basic living condition, after taking advices of requisitioned rural collective economic organizations and farmers, may be arranged by governments in uniform to make resettlement in Host Community. (Article 2 of Guiding Opinions on Improving Land Acquisition Compensation and Resettlement System) 4. Provisions on publicity of land acquisition information During land acquisition, it is required to protect farmers’ right of use of collectively-owned land and Right to Operate Contracted land. Before applying for approval of land acquisition, it is required to inform the farmers whose farmland is requisitioned of the purpose, location, compensation rate and placement approaches of land to be requisitioned. The investigation result on condition of land to be requisitioned should be confirmed by requisitioned rural collective economic organizations and farmers; if necessary, related departments of Ministry of Land and Resources should organize public hearings according to related regulations. Related documents known and conformed by farmers whose farmland is requisitioned shall be submitted for approval of land acquisition. It is required to accelerate establishing and improving conciliation and arbitration mechanism on disputes in land acquisition and resettlement, to protect legal rights of farmers whose farmland is requisitioned and land users. (Article 14 of Decisions on Deepening the Reform and Intensifying Land Administration by the State Council) The people’s governments of provinces, autonomous regions, municipalities should prepare approaches on distributing land compensation fee inside rural collective

economic organizations based on the principle of mainly using land compensation fee for farmers whose farmland is requisitioned. The requisitioned rural collective economic organizations should disclose the incomings and outgoings and distribution of land compensation fee to members of the organizations to receive supervision. Agricultural department, civil administration department, and other departments should enhance the supervision on distribution and use of land compensation fee. (Article 15 of Decisions on Deepening the Reform and Intensifying Land Administration by the State Council) Administrative organs should disclose government information promptly and correctly. In case of finding false and incomplete information that affects or may affect social stability and disturb order of social control, administrative organs should issue correct government information within responsibility range to clarify matters. (Article 6 of Provisions of the People’s Republic of China on the Disclosure of Government Information) Administrative organs should be active in disclosing government information in ways easily known by the masses, such as government bulletin, government website, news release conference, newspapers, broadcast, TV, etc. (Article 15 of Provisions of the People’s Republic of China on the Disclosure of Government Information) Governments at all level should establish spots for consulting government information, and prepare accessory facilities to provide convenience for citizens, juridical person and other organizations. Administrative organs may set up public reference room, file acquisition spot, information publicity field, electronic information screen to disclose government information. Administrative organs should promptly offer disclosed government information to the National Achieves and public library. (Article 16 of Provisions of the People’s Republic of China on the Disclosure of Government Information) 5 Provisions on house relocation and housing site management Check and rectify standard for land use. One rural household can only process one housing site. The total area of constructed and reconstructed housing site(including accessory facilities) on agricultural land shall not exceed 140 square meters as per one household, and that on unused land (building lot) should not exceed 200 square meters. (Notice of General Office of People’s Government of Hubei Province on Intensifying Rural Housing site Management) Remover should establish removal plan and program, and get house removal license. The compensation should be paid to relocation household by the remover according to related laws and regulations. Unless otherwise specified, remover is not

allowed to adopt different compensation and resettlement standards for relocation households due to different properties of construction projects. If agreements of relocation compensation and resettlement can’t be reached between removers and the relocation households, or between removers, relocation households and leaseholders, by application of parties concerned, the local house relocation administration authority will be arbitration agency. (Article 6, 12, 15 of Implementation Measures of Administration of Urban House Relocation of Hubei Province) The methods of relocation compensation may be monetary compensation or exchange of house property right. The relocation household may choose relocation compensation methods. The amount of money compensation will be determined by appraisal price of real estate market according to location, usage, building area of relocation house. (Article 23, 24 of Regulations on the Administration of Urban House Relocation)

4.2.2 Summary of related laws, regulations and rules of Wuhan City

(1) Implementation Measures of Administration of Urban House Relocation of Wuhan City While issuing house relocation license, house relocation management authority should promulgate the remover, relocation scope, relocation period in house relocation license in the form of house relocation announcement. For house directly managed by relocation administration authority, houses of units and private houses (hereinafter briefly referred to directly managed house, self- managed house and private house), relocation compensation and resettlement agreement should be signed by remover and relocation household. In case of monetary compensation, the agreement should specify compensation amount, payment methods and term, term of relocation, solutions to breach of the agreement, and other consents needed. In case of exchanging house property right, parties concerned should sign agreements on housing site, area, way of calculating price difference, etc. Compensation should be paid to the relocation households according to related regulations and provisions unless removers dismantle unlicensed buildings and temporary buildings that have passed the approval term. But appropriate compensation should be given integrating replacement price and use life of relocation house if temporary buildings are within the approval term. The compensation for relocation shall mainly be monetary compensation or exchange of house property right. Unless otherwise specified, the relocation households may choose by themselves.

The amount of compensation should be determined by unit price(price of every meter of building area, the same hereinafter) appraised by local real estate market and building area of relocation house. The unit price appraisal of relocation house should be carried out by real estate appraisal institutes at the corresponding level according to location, usage, structure, newness rate. Location of relocation house shall be determined according to the land level promulgated by the People’s Government of Wuhan City. The directly managed houses that changed to be residential house from non- residential house shall be regarded as residential house and appropriate compensation shall be paid according to the building area used for operation. Removers should pay moving allowances to relocation households or leaseholders. During the transition period, removers should pay short-term relocation subsidies for relocation households or leaseholders who arrange dwellings for themselves, but no allowance shall be paid if they accept the houses for transition offered by removers. The transition period should not be more than two years. For relocation houses was for business and production, the remover shall give compensation according to the following regulations: 1) Moving and installation fee calculated by commodity transport price and equipment installation fee regulated by the state and Wuhan City; 2) Purchase price subtracted by depreciation price of equipment that can’t be used any more; 3) If the relocation causes production and business suspension and exchange of house property right, six-month business compensation will be paid to personnel on the payroll directly engaged in production and business with relocation scope as per monthly average salary level in the previous year. (2) Administration Measures of Collectively-owned land Acquisition and House Relocation of Wuhan City For relocation of residential houses within the Middle Ring Line, the relocation household may choose from monetary compensation and exchange of house property right; provided with conditions and approved by laws, multi-storey buildings may be established by rural collective economic organizations; For the relocation households that really need housing site for agricultural production, and the per capita agricultural land of which reaches or exceeds per capita average of Wuhan City, if approval condition for housing site is conformed, they can apply for resettlement by housing site.

For relocation of residential houses outside the Middle Ring Line, the relocation household may choose from monetary compensation, exchange of house property right and establishment of additional housing site. The relocation household choosing monetary compensation should be paid for allowance. The allowance should be determined by replacement price of relocation house and location compensation price of housing site. The replacement price standard shall be established by price administration authority and real estate management authority together. The location compensation price of housing site shall be determined by different locations. The locations of housing sites within the territory of Jiang’an, Jianghan, Qiaokou, Hanyang, Wuchang, Qingshan, Hongshan, Wuhan Economic & Technological Development Zone, Wuhan East Lake Hi-tech Development Zone are divided into three classes according to the overall urban planning of Wuhan City: the first class refers to the area within the Second Ring Road (inclusive); the second class refers to the area between the Second Ring Road and the Third Ring Road (Middle Ring Line); the third class refers to the area outside the Third Ring Road (Middle Ring Line). Detailed price compensation rate shall be established by price administration authority and land administration authority of Wuhan City together. The housing site location and compensation rate in districts of Dongxihu, Hannan, Caidian, Jiangxia, Xinzhou, Huangpi will be established by corresponding people’s government and approved by price administration authority and land administration authority of Wuhan City. For relocation of residential houses, compensation will be paid to relocation household by one housing site for one household by the remover. The floor area and building area of relocation houses should be determined after approval. If the floor area is less than 60 square meters, and the relocation household has no other dwelling in Wuhan City, the floor area will be determined as 60 square meters. (3) Measures of Compensation and Resettlement on Collectively-owned land Acquisition of Wuhan City For the acquisition of land, compensation for land should be paid in term of following standards: 1) For the acquisition of cultivated land, the compensation shall be 10 times of the average output value of the three years prior to the acquisition; 2) For the acquisition of garden, forest land and other agricultural land, the compensation shall be 6 times of the average output value of neighbouring cultivated land in the three years prior to the acquisition.

3) For the acquisition of land for construction or unused land, the compensation shall be 6 times of the average output value of neighbouring cultivated land in the three years prior to the acquisition. For young crops on the requisitioned land output value of which can be worked out, the compensation will be paid by the output value. If the crops can be harvested, no compensation will be provided; contrarily, if the crops can’t be harvested, the compensation of output value of one season will be paid. For the crops output value of which can’t be worked out, the compensation will be paid appropriately. For farmland pumping drainage and irrigation devices, electrical, broadcast and telecommunication facilities and other attachments, if they can transported, they will be transported by the unit of ownership. Transport fee will be paid by the land user. If they can’t be transported, compensation will be paid by land user according to replacement price. The units approved to temporarily use collectively-owned land will provide compensation for rural collective economic organization in term of following regulations: 1) For temporary acquisition of cultivated land, the compensation shall be calculated by the average output value of the three years prior to the acquisition and the service years. Less than one year shall be calculated as two years, while over one year shall be calculated as three years. 2) For temporary acquisition of other beneficial land, the compensation shall be the product of the average output value of neighbouring cultivated land in the three years prior to the acquisition and service years. For young crops and attachments to the ground, compensation shall be paid to the owner according to the actual loss. (4) Notice on Compensate Rate of Location Price of Housing Site on Collectively- owned Land to Be Relocated (May 7, 2004) Locations of farmers’ housing sites within the territory of Jiang’an, Jianghan, Qiaokou, Hanyang, Wuchang, Qingshan, Hongshan Districts and Wuhan Economic and Technological Development Zone, Wuhan East Lake New Technology Development Zone (including trusteeship zone) are divided into three classes in accordance with the overall urban planning of Wuhan: the first class is within the Second Ring Road (inclusive), the second class is the area between the Second Ring Road and the Third Ring Road (Middle Ring Line), and the third class is outside the Third Ring Road (inclusive). The location price of housing site is the product of authorized legal land area of the house and the compensation rate of location price. Here, the compensation

rate of housing sites at the first class location is 2,280 Yuan/ , the compensation rate of housing sites at the second class location is 1,920 Yuan/ , and the compensation rate of housing sites at the third class location is 1,500 Yuan/. The housing site location and compensation rate in districts of Dongxihu, Hannan, Caidian, Jiangxia, Xinzhou, Huangpi (not including trusted areas by development zone) will be established by corresponding people’s government and approved by price administration authority and land administration authority of Wuhan City. (5) Opinions of Wuhan Municipal Committee of the CPC and Wuhan Municipal Government on Actively Advancing Comprehensive Renovation of “Urban Village” During comprehensive reconstruction of “village within the city”, according to related state and provincial regulations, registered permanent rural residence may be changed to be permanent urban residence with no charge. After reforming of collective economic organization of “village within the city” and transition from registered permanent rural residence to permanent urban residence, according to The Organic Law of the Villagers’ Committees of the People's Republic of China and The Organic Law of the Urban Residents Committees of the People's Republic of China, villagers’ committee shall be cancelled and community residents’ committee shall be established. The economic entity established after reforming shall give priority to the employment of labour due to transition from villages’ committee to community residents’ committee, and encourage and lead them to carve out. The labour that has no job but is willing to work should be granted with Re-employment Preference Certificate and enjoy corresponding preference policies. Related governments and departments should organize professional technical training for the labour with work ability and employment need in the “village within the city”. The training fee should be drawn from special fund of the local city or district. The remover may adopt monetary resettlement after approval of relocation household. To reasonably use land and reduce development intensity, according to controlled specified planning and application of relocation household, commercial houses may be built appropriately and area of certain proportion of residential houses may be used to replace building area of commercial buildings.

4.2.3 The World Bank’s Relevant Policies on Involuntary Resettlement

Policies of involuntary resettlement are specified by OP4.12 and BP4.12 which are operational polices and procedures of World Bank on involuntary resettlement, of which

main articles related to this project include: Policy objectives for resettlement 1. Involuntary resettlement should be avoided or minimized, exploring all feasible and alternate project design programs. 2. Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. Measures to achieve objectives 3. The resettlement plan or resettlement policy framework includes measures to ensure that (1) Displaced persons are informed about their options and rights pertaining to resettlement; (2) Displaced persons are consulted with on technically and economically feasible resettlement alternatives and provided with related programs; (3) Displaced persons are provided prompt and impactsive compensation at full replacement cost for losses of assets attributable directly to the project. 4. If it includes physical relocation, the resettlement plan or resettlement policy framework includes corresponding measures to ensure to: (1) Provide assistance (such as moving allowances) during physical relocation for displaced persons. (2) Provide residential housing, or housing sites, or, as required, agricultural sites for displaced persons, a combination of productive potential, advantages of location, and other factors of agricultural sites is at least equivalent to the advantages of the old site. 5. When necessary to achieve the objectives of the policy, the resettlement plan or resettlement policy framework also includes measures to ensure that: (1) Displaced persons are offered with support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living. (2) Displaced persons are provided for development assistance such as land preparation, credit facilities, training, or job opportunities. Particular attention should be paid to the needs of vulnerable groups among those displaced, especially those below the poverty line, the landless, the elderly, women and children, indigenous peoples, ethnic minorities, or other displaced persons who may not

be protected through national land compensation legislation. Priority should be given to land-based resettlement strategies for displaced persons whose livelihoods are land-based. These strategies may include resettlement on public land, or on private land acquired or purchased for resettlement. Whenever replacement land is offered, displaced persons are provided with land for which a combination of productive potential, advantages of location, and other factors is at least equivalent to the advantages of the land taken. If land is not the preferred option of the displaced persons, the provision of land would adversely affect the sustainability of a park or protected area, or sufficient land is not available at a reasonable price, non-land- based options built around opportunities for employment or self-employment should be provided in addition to cash compensation for land and other assets lost. The lack of adequate land must be demonstrated and documented to the satisfaction of the Bank. Payment of cash compensation for lost assets may be appropriate where (a) livelihoods are land-based but the land taken for the project is a small fraction of the affected asset and the residual is economically viable; or (b) active markets for land, housing, and labor exist, displaced persons use such markets, and there is sufficient supply of land and housing; or (c) livelihoods are not land-based. Cash compensation levels should be sufficient to replace the lost land and other assets at full replacement cost in local markets. Displaced persons and their communities, and any host communities receiving them, are provided timely and relevant information, consulted on resettlement options, and offered opportunities to participate in planning, implementing, and monitoring resettlement. Appropriate and accessible grievance mechanisms are established for these groups. In new resettlement sites or host communities, infrastructure and public services are provided as necessary to improve, restore, or maintain accessibility and levels of service for the displaced persons and host communities. Alternative or similar resources are provided to compensate for the loss of access to community resources (such as fishing areas, grazing areas, fuel, or fodder). Patterns of community organization appropriate to the new circumstances are based on choices made by the displaced persons. To the extent possible, the existing social and cultural institutions of displaced persons and any host communities are preserved and displaced persons’ preferences with respect to relocating in preexisting communities and groups are honored.

4.3 Resettlement Policies for the Project

According to the above mentioned national and local law framework as well as related policies of the World Bank, and by considering the practical situation of areas affected by Wuhan Urban Transport Project, and based on completely negotiating with the affected masses, the resettlement office establish following policies suited for this project on resettlement of displaced persons. After obtaining authorization from the World Bank and approval from the People’s Government of Wuhan City, Resettlement Action Plan shall be implemented in the light of following policies.

4.3.1 Policies on acquisition of collectively-owned land

Based on various factors such as the land type, output value of land, land location, grade of farmland, per capita cultivated land quantity, supply demand relations of land, local economic development level, the resettlement office establishes uniform base compensation rate. Since the requisitioned land of Heping Street of Hongshan District and Houhu Street of Jiang’an District have the similar geographic location, man-land relationship, planting condition and output value of crops, after fully negotiation, the base compensation rate of annual output value is 6500 Yuan. In accordance with Measures of Compensation and Resettlement on Collectively- owned land Acquisition of Wuhan City, the multiples of the compensation for the acquisition of collectively-owned land of this project are calculated on the basis of the following: the compensation for cultivated land is 10 times of the base compensation rate; that of forest land or other agricultural land is 6 times on the basis of 6500 Yuan/mu; that of construction and unused land is 6 times. The multiples of resettlement allowance is calculated on the basis of the following: the compensation for vegetable land, fish pond and lotus pond is 15 times of base rate, and that of water pond is 6 times; no resettlement allowance is paid for requisitioned housing site and waste land. For requisitioned vegetable land, fish pond and lotus pond on collectively-owned land, the young crop compensation will be paid to the proprietor of the land according to the actual losses caused. Therefore, the compensation rate for collectively-owned land is: 162500 Yuan/mu for pot pond, fish pond and lotus pond; 97500 Yuan/mu for pond; 39000 Yuan/mu for other profitless land and waste land. The compensation fund for requisitioned collectively-owned land is paid by Urban Construction Fund Office of the People’s Government of Wuhan City through special account to the accounts of related units. use of compensation fund is supervised and audited by superior unit. First, all affected villagers will join the social security

program, and other use approaches shall be determined upon negotiation in the meeting of villagers. and the fund shall be mainly used for collective public welfare undertakings. The requisitioned attachments to ground will be compensated to the proprietor according to the actual losses caused.

4.3.2 Policies on acquisition of state-owned land The policies prescribed by Wuhan Municipal Bureau of Land Resources and Housing Management are implemented for the stated-owned land requisitioned in this project. The compensation rate of per unit area land equals to: the base land price of the requisitioned land lot minus the land transfer fee of it. According to the policy above, the compensation for Shuidong Section of Second Ring Line is 661000 Yuan/mu, and that for the downward extension line of Jiefang Avenue is 380900~911800 Yuan/mu, and that of Gangduhuayuan initial and terminal station is 498900 Yuan/mu.

4.3.3 Policies on house relocation on state-owned land The relocation household on state-owned land in the relocation scope of the project may freely select resettlement mode from monetary compensation or resettlement with material objects (economically subsidied housing). If the owner of dismantled private house choose monetary compensation, then the compensation amount = Property building area of relocation house ×(Location price + replacement price of the house). If monetary compensation is provided for public-property dwelling house (public- property dwelling house under the direct administration of the municipality and that under the administration of the institution itself), 20% of monetary compensation will be paid to the relocatee (property owner), and 80% will be paid to the leaseholder (user). The market evaluation price of relocation house will be evaluated by qualified real estate evaluation company on the basis of the factors like location, function and building area. In this project, the relocation houses for business and non-business use on state- owned land have the same compensation standard as dismantled residential houses. The compensation rate is also based on the evaluation price of real estate evaluation company. Transition allowance will be paid to relocation houses. Two months’ transition fee is paid for choosing monetary compensation and actual transition period will be the basis of calculation for choosing resettlement with material objects.

According to the policy above, the compensation for location price of relocation houses in Shuidong Section of Second Ring Line is 3015 Yuan/ ; the replacement price for this section is 830 Yuan/ for houses in framework structure, 750 Yuan/ for houses in brick-concrete structure, 420 Yuan/ for houses in brick-wood structure, 340 Yuan/ for houses in simple structure; Due to the long downward extension line of Jiefang Avenue, the location price has three standards for Dijiao Section, Vehicle Factory Section, Huangpu Avenue Section, i.e., 3325 Yuan/ , 3765 Yuan/ and 3952 Yuan/ respectively. The replacement price for this line is 830 Yuan/ for houses in framework structure, 570 Yuan/ for houses in brick-concrete structure, 420 Yuan/ for houses in brick-wood structure, 340 Yuan/ for houses in simple structure. The compensation rate for commercial stores consists of location price and replacement price. The replacement price of buildings is the same as the residential houses in the same structure. The standard of location price is: 3918 Yuan/ for Shuidong Section of Second Ring Line. The standard of location price for three zones of downward extension line of Jiefang Avenue is 5893 Yuan/ , 9709 Yuan/ and 11386Yuan/ . For the productive buildings and equipment, following compensation will be given: the relocation and installment fee of the equipment. the equipment that can not be rehabilitated will be compensated with the depreciated value. the lost of surplus will be calculated by six months’ salary lost of the registered staff.

4.3.4 Policies on house relocation on collectively-owned land Compensation will be paid for houses to be relocated on collectively-owned land according to policies of Wuhan City. The compensation includes location price and replacement cost. The compensation price of housing site is the product of approved floor area and location price of housing site. Shuidong Section of Second Ring Line belongs to first-class location, so the location compensation rate of housing site is 2280 Yuan/ . The downward extension line of Jiefang Avenue involves first-class and second-class location, so the location compensation price is 2280 Yuan/ for first-class area and 1920 Yuan/ for second-class area. The replacement cost is 830 Yuan/ for houses in framework structure, 750 Yuan/ for houses in brick-concrete structure, 420

Yuan/ for houses in brick-wood structure, 340 Yuan/ for houses in simple structure.

4.3.5 Policies on compensation for shops to be relocated As for shops with business-type house property certificate, this project will compensate according to the compensation rate of building for business use; but for shops with non-business house property certificate, after being compensated as residential houses, they will be compensated with 600 Yuan/ for the building area for business use.

4.3.6 Policies on compensation for unlicensed houses This project will compensate unlicensed houses as per the replacement cost, excluding the location compensation price.

4.3.7 Policies on special support for vulnerable groups Firstly list the families of vulnerable groups into name list of purchasers of economically affordable houses and ensure that they get the houses. For families of vulnerable groups choosing monetary compensation, if the area of houses to be relocated is not more than 20 , the compensation will be paid as per 25 . If the area is 20~30 , the compensation will be paid as per 30 . Through local community, arrange families of vulnerable groups who are willing to choose low-rent houses into annual low-rent house plan. The families of vulnerable groups have priority in selecting area, house type and location of economically affordable houses. Resettlement organizations at all levels are responsible for organizing manpower to assist in the moving of the families of vulnerable groups. For the relocated families covered within the lowest living standard security system for urban residents, the sum of 20000 Yuan is paid to each household as living subsidies; for the relocated families with disabled member(s), the sum of 20000 Yuan is paid to each household as living subsidies; in case the relocated family falls into the aforesaid two situations at the same time, the sum which is paid as living subsidy will be doubled, viz. 40000 Yuan/family.

4.3.8 Policies on resettlement of transient population and leaseholder Though transient population and leaseholder are not owner of house property right, they can get corresponding compensation once their business and life are affected by relocation. Firstly, if they have to move due to the project relocation, they shall get moving transition compensation. Secondly, if the lease contract of transient population

is not yet due, transient population or leaseholder may get corresponding part from the compensation the project owner pays to the relocation household with the amount determined by mutual negotiation of transient population or leaseholder and relocation household.

5. Resettlement Compensation Rates

On the basis of deep survey and research, various kinds of compensation rates listed in the Resettlement Action Plan were established after full negotiation with the affected units, persons and relevant local governmental departments of Wuhan City according to relevant laws and regulations in the People’s Republic of China and Hubei Province and involuntary resettlement policy of the World Bank, aiming to make the displaced persons to retrieve and improve their living standard after resettlement in a short period.

5.1 Compensation Rate of Requisitioning Collectively-owned Land The compensation rates for requisitioning collectively-owned land include land compensation, resettlement allowance, compensation for attachments to the ground and young crops, as well as taxations payable to the State. 1 Land compensation In course of the resettlement survey and making the resettlement plan, the WMOFFFUCP profoundly communicated with the affected villages of the land acquisition, inquired about the statistics of past years in the statistical department, and for many times, invited officials from competent authorities like Wuhan Municipal Bureau of Land Resources and Housing Management to negotiate the base compensation rate that is applicable to the land acquisition of this project. Based on many factors such as class, production value, geographic location, grade of agricultural land, per capita cultivated land, supply and demand of land, and the local economic developmental level, a unified base compensation rate is determined. Considering that Heping Street of Hongshan District and Houhu Street of Jiang’an District have the similar geographic location, man-land relationship, plantating status and the production value of crops, after full discussion, the base compensation rate of this project is 6,500 Yuan. According to the Measures of Compensation and Resettlement on Collective Land Acquisition of Wuhan City (No.149 file of Wuhan People’ Government), the multiples of the compensation for the acquisition of collectively-owned land of this project are calculated on the basis of the following: if cultivated land is requisitioned, the compensation is 10 times of the base rate; if garden, forest land or other agricultural land are requisitioned, the compensation is 6 times; if the land for construction and unused land are requisitioned, the compensation is 6 times. 2 Resettlement allowance

According to local laws and regulations of Wuhan and the negotiation with the local government as well as representatives of affected population, the resettlement allowance for paddy field and dry land of this project takes 15 times of annual average product value of previous three years, which is 6500 Yuan; the resettlement allowance for requisitioned fish ponds and forest land is 9 times of annual average product value of previous three years; the resettlement allowance for requisitioned ponds adopts 9 times of annual average product value of previous three years; no resettlement allowance is paid for requisitioned construction land and other land without gains. In addition, according to relevant policies of the State and Wuhan city for land acquisition, the taxations payable for collectively-owned land acquisition are as follows: (1) compensation for new land use for construction; (2) cultivated land reclamation fee; (3) foundation for water works; (4) tax on occupation of cultivated land; (5) exploitation expense of new vegetable garden; (6) management cost of land acquisition; (7) cost of labor used for digging the fish pond, which should be paid as per 3000 Yuan/mu. Since Phase II of Wuhan Urban Transport Project belongs to municipal infrastructure construction, according to relevant documents and regulation, the exploitation expense of new vegetable garden can be exempted; therefore, it is not included in the land acquisition taxations of this project. See Table 5-1 for the paying rate of above-mentioned taxations.

Table 5-1 Various taxations payable for land acquisition

Paying rates Taxation Hongshan Jiang’an Qiaokou East Lake Scenic Dongxihu District District District Area Precinct District Compensation for 40 40 new land use for 40 Yuan/ 40 Yuan/ 40 Yuan/ Yuan/ Yuan/ construction Cultivated land 15,000 15,000 15,000 8,000 15,000 Yuan/mu reclamation fee Yuan/mu Yuan/mu Yuan/mu Yuan/mu Foundation for Cultivated land 2,000 Yuan/mu non-cultivated land 1,500 Yuan/mu water works Tax on occupation 10 Yuan/ 10 Yuan/ 7 Yuan/ of cultivated land Cultiva ted 50350 50350 41349 Paying rate land (Yuan/mu) Non cultivat 49850 49850 40849 ed land Management cost 1.1~4% of land acquisition fees of land acquisition

3 Compensation rate for attachments to the ground According to the Notice on the Compensation Rates of Young Crops, Fish Ponds, Attachments to the Ground and Other Relevant Facilities in the Requisitioned Land issued by Wuhan Price Bureau and Wuhan Municipal Bureau of Land Resources and Housing Management, as well as the actual situations of land acquisition and relocation of Wuhan, the compensate rates of attachments to the ground of collectively-owned land are:

Table 5-2 Compensate rates of attachments to the ground

Compensation rate Compen Types of Hongsha Jiang’an East Lake Qiaokou Dongxihu sation attachments n District District Scenic Area District District 5000 Tomb 5000 Yuan/per 5000 Yuan/per 5000 Yuan/per 1200 Yuan/per Yuan/per Well 840 Yuan/per 840 Yuan/per 840 Yuan/per 840 Yuan/per 840 Yuan/per Enclosing wall 36 Yuan/ 36 Yuan/ 36 Yuan/ 36 Yuan/ 36 Yuan/ Compens ation for Terrace 11 Yuan/ 11 Yuan/ 11 Yuan/ 11 Yuan/ 11 Yuan/ attachme nts Gravel road 38 Yuan/ 38 Yuan/ 38 Yuan/ 38 Yuan/ 38 Yuan/ W.C. 100 Yuan/ 100 Yuan/ 100 Yuan/ 100 Yuan/ 50 Yuan/ Steel framework plastic 20 Yuan/ 20 Yuan/ 20 Yuan/ 20 Yuan/ 10 Yuan/ greenhouse

According to the above rates, the compensation rate of collectively-owned land acquisition see details in Table 5-3.

Table 5-3 Compensation rate of collectively-owned land acquisition

Vegetable Fish (lotus) Forest Housing Waste Item Pond garden pond land site land Base compensation 6500 6500 6500 6500 6500 6500 rate (Yuan) Multiples of land 10 10 6 6 6 6 compensation Multiples of 15 15 9 9 0 0 resettlement allowance Total 162500 162500 97500 97500 39000 39000

5.2 Compensation Rate of State-owned Land Acquisition

The policies prescribed by Wuhan Municipal Bureau of Land Resources and Housing Management are implemented for the stated-owned land requisitioned in this project. The compensation rate of per unit area land equals to: the base land price of the requisitioned land lot minus the land transfer fee of it.

Table 5-4 Compensation rate of state-owned land acquisition

Base land Compensation rate Land transfer Subproject price Yuan/ fee Yuan/ Yuan/ 10000 Yuan/mu Shuidong Section 1177 186 991 66.10 Jiefang Avenue Huangpu Street 1585 218 1367 91.18 Section Vehicle Factory 1177 186 991 66.10 Section Baibuting Section 893 145 748 49.89 Dijiao Section 687 116 571 38.09 Gangdu Garden 893 145 748 49.89

5.3 Compensation Rate of Relocation Houses on State-owned Land

5.3.1 Compensation rate of dwelling houses on state-owned land

In the relocation scope of the project, the persons suffering from relocation may freely select the resettlement mode from monetary compensation or relocation with material objects (economically subsidied housing). If the relocation household chooses the monetary compensation, the compensation measures are: 1) Private dwelling house Amount of monetary compensation = Property building area of house to be relocated ×(Location price + Unit price of market evaluation of house to be relocated) 2) If monetary compensation is provided for public-property dwelling house (public-property dwelling house under the direct administration of the municipality and that under the administration of the institution itself), 20% of monetary compensation

will be paid to the relocatee (property owner), and 80% will be paid to the leaseholder (user). Amount of monetary compensation = Property building area of house to be relocated ×(Location price + Unit price of market evaluation of house to be relocated) ×80% 3) Non-domestic house The calculation formula of the amount of monetary compensation for non-domestic house is the same as the above. According to relevant regulations of Regulations on the Administration of Urban House Relocation, Implementation Measures of Administration of Urban House Relocation of Wuhan City, and Guiding Opinions on Appraisal of Urban House Relocation, the market evaluation price of urban house to be relocated will be evaluated on the basis of the factors like location, function and building area, and by qualified real estate evaluation company. According to the latest house evaluation prices of Wuhan, the location price of houses to be relocated of this project are as follows:

Table 5-5 Compensation rate of dwelling houses on state-owned land

House relocation price Frame Brick- Brick- Subproject Location price Simple constructi concrete wood structure on structure structure I. Shuidong Section of Second Ring Line 3015 830 570 420 340 II. Downward extension line of 3325-3952 830 570 420 340 Jiefang Avenue

5.3.2 Compensation rate of non-domestic houses on state-owned land

In this project, the houses (for business and non-business use) to be relocated on state-owned land has the same compensation as dwelling houses to be located. The compensation rate is also based on the evaluation price of real estate evaluation company, see the Table in the following for details:

Table 5-6 Compensation rate of houses to be relocated on state-owned land

House relocation price Project Location Frame Brick-concrete Brick-wood Simple price construction structure structure structure

Shuidong Section of 3918 830 570 420 340 Second Ring Line Business use Downward extension 5893 11 line of 830 570 420 340 386 Jiefang Avenue Shuidong Section of 1284 830 570 420 340 Second Ring Industrial, Line transport, Downward warehousing extension use 2404 28 line of 830 570 420 340 21 Jiefang Avenue

5.4 Compensation Rate of Houses to Be Relocated on Collectively-owned Land

According to the Notice on Compensate Rate of Location Price of Housing Site on Collectively-owned Land to Be Relocated, within the territory of Jiang’an, Jianghan, Qiaokou, Hanyang, Wuchang, Qingshan, Hongshan Districts and Wuhan Economic and Technological Development Zone, Wuhan East Lake New Technology Development Zone (including trusteeship zone), the locations of peasants’ housing sites are divided into three classes in accordance with the overall urban planning of Wuhan: the first class is within the second ring road (inclusive itself), the second class is the area between the second ring road and the third ring road (middle ring line), and the third class is outside the third ring road (inclusive itself). The location price of housing site is the arithmetic product of authorized legal land area of the house and the compensation rate of location price. Here, the compensation rate of housing sites at the first class location is 2,280 Yuan/ , the compensation rate of housing sites at the second class location is 1,920 Yuan/ , and the compensation rate of housing sites at the third class location is 1,500 Yuan/. In this project, the houses to be relocated on collectively-owned land are gathering at the Shuidong Section of Second Ring Line and Downward extension line of Jiefang Avenue. See Table 5-7 for details of their compensation rate.

Table 5-7 Relocation rate of houses to be relocated on collectively-owned land

Location class and compensation price (Yuan/) Price Building composition structure Shuidong Section of Second Downward extension line Ring Line of Jiefang Avenue Steel- concrete 830 830 structure Brick- House concrete 570 570 relocation structure price Brick- wood 420 420 structure Simple 340 340 structure Location price 2280 1920 2280 of housing site

5.5 Compensation Rate of Shops to Be Relocated

The shops to be relocated in the licensed houses are classified into ordinary shops and unlicensed shops. The ordinary shops refer to the ones with certificate of building property right for business use, and unlicensed shops are the ones only with certificate of building property right for non-business purpose, which are reconstructed to be shops by residents privately. As for the licensed shops, this project will compensate according to the compensation rate of building for business use; but for unlicensed shops, after being compensated as dwelling houses, they will be compensated with 600 Yuan/ for the building area for business use.

Table 5-8 Relocation rate of shops to be relocated

House relocation price Frame Brick- Brick- Project Location Price constructio concrete wood Simple structure n structure structure Shuidong Section of Second Ring 830 570 420 340 Line 3918 Downward Extension Line 830 570 420 340 of Jiefang Avenue 5893 11386

5.6 Compensation for Unlicensed House

There are a few unlicensed houses within the scope of the relocation of this project, basically in Chailin Village and Tieji Village. This project will compensate unlicensed houses as per the actually evaluated cost, but excluding the location compensation price. The houses newly built after the deadline of the survey will not be compensated. See Table 5-9 in the following for details of unlicensed houses.

Table 5-9 Compensation rate of unlicensed house

Brick-concrete Building Structure Brick-wood structure Simple structure structure Compensation rate 570 420 340 (Yuan/)

5.7 Rates for moving allowance and transition allowance

Moving allowance and transition allowance aim to compensate for the losses of housholds during the moving and transition period of finding another house. If the displaced households accept monetary compensation, 2 months’ transition allowance is to be paid; if relocation with material objects is accepted, the allowance is paid according to the actual transition period.

Table 5-10 Moving allowance and transition allowance

Compensat Compensati Type Rate Type Rate ion on 300 40 Yuan/househ House 6 Yuan/ /month old 400 60 Yuan/househ Shop 20 Yuan/ /month Moving old Transition allowance 500 allowance 80 Yuan/househ House of old enterprises 15 Yuan/ /month 600 and >80 Yuan/househ institutions old

5.8 Compensation for Household Facilities

Please see Table 5-11 for the compensation rates of various household facilites of houses to be relocated in this project.

Table 5-11 Compensation rate of household facilities

Facilities Unit Compensation rate Yuan Electricity meter Yuan/piece 70 Piping coal gas transition Yuan/household 1800 Cable TV transition Yuan/household 100 Water meter Yuan/piece 70 Wide Band Yuan/household 1100 Fixed-line telephone Yuan/piece 108 Air-conditioner Yuan/set 200

6. Implementation Plan for Resettlement and Rehabilitation

6.1 Objectives, Methods and Principles of Resettlement and Rehabilitation

6.1.1 Objectives of resettlement and rehabilitation

In accordance with the policies on involuntary resettlement of the World Bank and the requirements of relevant national laws and regulations, the overall objective of the resettlement of the World Bank Financed Wuhan Urban Transport Project is to rehabilitate as soon as possible and improve as much as possible the living conditions and production of affected population and enterprises and public institutions. The concrete objectives are as follows: Affected households will obtain compensation calculated by replacement cost, and the area, structure and living environment of their reconstructed houses may reach and exceed the levels prior to relocation; All kinds of attachments to the ground affected are compensated by replacement cost; Public buildings and special facilities are compensated by replacement cost and may be rehabilitated to their original status; After reconstruction of enterprises, their production scale and capability as well as employment of employees will not be affected. No labor force in affected enterprises will lose their jobs permanently; Public facilities and environment of affected communities will be rehabilitated to their original status and even improved; Labor force whose land is requisitioned will be properly allocated, and their incomes will be guaranteed and increased by improving production conditions. No peasants will lose their jobs permanently due to land acquisition.

6.1.2 Methods of resettlement and rehabilitation

The resettlement and rehabilitation of livelihood and production of affected population will be implemented simultaneously. For livelihood, house relocation and reconstruction and rehabilitation of supporting living facilities will be implemented, including: Housing for affected households;

Housing for production organizations; Water and electricity supply facilities for residents and other such facilities. For production, employment of labor force and reconstruction and rehabilitation of production facilities will be implemented, including Agricultural allocation of affected agricultural population; Rehabilitation of production facilities of production organizations. Production facilities will be compensated by replacement cost to rehabilitate production and operation. Resettlement and rehabilitation will be carried out by means of monetary compensation, labor arrangement, and rehabilitation of production and living conditions.

6.1.3 Principles of resettlement and rehabilitation

Affected population will participate in the whole process of resettlement. For issues including compensation rates of houses and facilities, selection of sites of resettlement, schedule of relocation, schedule of rehabilitation, fund disbursement, and measures for rehabilitation of production and operation, affected population or their representatives must be involved and consulted with to reach an agreement. Symposia of representatives and consultation meetings of affected residents or affected will be held. All kinds of compensations will be directly given to property owners, and any organizations and individuals may not retain or embezzle compensation funds of others. Compensation for houses, special facilities and attachments to the ground will be calculated by replacement cost. The amount of compensation shall not be retained, depreciated or levied taxes. The compensation obtained by property owners must be calculated by the publicized rates. All the property of originally built structures shall belong to property owners. The residual value of surplus material left after relocation shall not be deducted from compensation. Help and care will be offered to vulnerable groups. Vulnerable families should be given priority to in selection of resettlement housing, offer of information on resettlement housing, supply of low-rent housing, and purchase price of subsidied housing; and in employment opportunities created in the process of project implementation, distribution of service networks at resettlement sites, etc.

6.2 Resettlement of Relocated Households

The proper resettlement of relocated households is one of the most important content of project resettlement office, and it is also a topic on which repeated

consultations have been conducted with affected population. From Dec. 2008 to Mar. 2009, the project resettlement office carried out an extensive and deep survey and consultation among affected population, learnt the desires of relocated households, and formulated corresponding policies and measures according to their opinions and requirements. According to the results of consultation, the following three methods will be taken to implement resettlement of relocated households: 1) Resettlement by monetary compensation During survey and consultation, we found that in Tieji, Chailin and Heping villages at Shuidong Section of Second Ring Line where private houses gathered and in Xingfu Village along the downward extension line of Jiefang Avenue, some villagers possessed houses in several places and they hoped to obtain directly monetary compensation. Monetary compensation will be adopted for such relocated households and bank books will be given to them directly. 2) Resettlement in subsidied housing In Jun. 6, 2009, the General Office of Wuhan People’s Government issued the No. 88 document [2009], definitely stating that the relocated households of key construction projects in Wuhan could be involved in the subsidied housing plan for resettlement. This policy guarantees the smooth resettlement of the relocated households on state- owned land for this project. The materials collected by the Resettlement Division of WMOFFFUCP show that, within the area affected by this project, the construction of more than 1,300,000 square meters of subsidied housing has been commenced and over 13,000 households will be resettled (see Table 6-1 for details). Even if all the relocated households choose resettlement in subsidied housing, only 1.5% of housing available will be occupied, and therefore current resettlement policy may fully ensure that all the relocated households could have basic housing conditions. The relocated households living in the dormitory of provincial No. 1 Construction Company at Shuidong Section have small living area, and most of them haven’t housing in other places. About 30% of them (totally 81 households) chose monetary compensation of own accord; the rest 70% (about 55 households) preferred resettlement in housing. And the WMOFFFUCP will coordinate the district governments and be responsible for listing these households as purchasers of subsidized housing. The relocated households may choose suitable area and location of subsidized housing at their options. According to the situation of real estate market in Wuhan in 2009, the price of subsidized housing is now 2300-2600 Yuan/ . If calculated by mean area, the average family can use the compensation to buy an subsidized housing of at least 50

with toilet and complete kitchen fittings. In this way, the living conditions of relocated households will be largely improved. During the transition period, relocated households will be given a transition allowance of 6 Yuan/ per month; and the rate will be 12 Yuan/ per month for a transition over 2 years.

Table 6-1 subsidied housing resources at project areas (the construction started in 2008)

Unit in charge of Building area Number of households to be No. Project site development and (10000 ) relocated construction North of Xingfu Road, Wuhan Comfortable 1 Houhu Village, Housing Project 46.47 4647 Jiang an District Development Co., Ltd. Special No. 1, Jingnan Road, Wuhan Dongqin Real 2 10.66 1066 Houhu Village, Estate Co., Ltd. Jiang an District Wuhan Airport No.154, Erqi Road, Comprehensive 3 14 1400 Jiang an District Development Corporation No. 2721, Jiefang Wuhan Huasen Real 4 Avenue, Jiang an Estate Development Co., 4.5 450 District Ltd. Wuhan Zhongda Real No.98, Tieji Road, 5 Estate Development Co., 8.22 822 Wuchang District Ltd. Special No.1, Taizi Wuhan Ansheng Real 6 Village, Yujiatou, Estate Development Co., 5.84 584 Wuchang District Ltd. East of Luojiagang, 7 TBD 40.37 4037 Hongshan District Dongfanghong Wuhan Modern Village, Heping 8 Residential Housing 1.9 190 Township, Hongshan Development Co., Ltd. District Total 131.96 13196 3) Resettlement in second-hand housing For relocated households who are unwilling or can’t afford to buy new houses, the project resettlement office will: (i) provide information on local second-hand housing trade. The Resettlement Division will also communicate with relevant competent

department to exempt the trade tax; and (ii) provide information on local low-rent housing and give priority to list them in resettlement. 4) Resettlement combining “Village within the City” reformation During the survey, the resettlement office learnt that, Chailin, Tieji and Heping villages involved in relocation along Shuidong Road were carrying out “Village within the City” reformation. That is to say, even if this project did not launch, these villages have planned to relocate villagers’ houses and resettle them in other sites in a unified way. This project has provided an opportunity for the three villages to push forward their reformation. At present, the reformation along Shuidong Road is ongoing and unified residential districts have taken on an initial size, and relocated villagers may be resettled nearby. Thus, these villagers can choose between 2 resettlement modes: one is to accept the monetary compensation provided by the project office and select an economically affordable house in the resettlement community; another is to voluntarily participate in the “village within city” reconstruction organized by the village committee after they receive the compensation from the project office. In fact, what the project office needs to do is only to compensate on the ground of agreed compensation rate.

Fig. 6-1 Planning map for reformation of “Village within the City” in Tieji Village

Fig. 6-2 Newly built residential district for resettlement of relocated villagers at Shuidong Section of Second Ring Line

6.3 Rehabilitation of Peasants Affected by Land Acquisition

According to the survey, the total area of collective cultivated land for this project is 153.9 mu. Only very few vegetable lands and lotus ponds are occupied in Heping Village at Shuidong Section of Second Ring Line, Yongfeng Village at the bus station at Tianshunyuan Residential District, and Xingfu Village at downward extension line of Jiefang Avenue; 98 mu fish ponds in Xingfu Village and 27 mu fish ponds in Heping Village are occupied. According to the survey, these vegetable land and fish ponds are collectively- owned, tenanted to villagers, and collect the rental yearly. These villages are located at the junction of the main urban area and suburb, so they frequently encountered the problems of land requisition. For many years, with respect to the land requisition, especially the land compensation and resettlement, they have already formed a complete system of policies which are accepted by villagers and have been impactsive for long. According to these village regulations, after the land requisition, the compensation for young crops and other attachments to the ground go directly to the owners and the land compensation fund is under the control of the village, mainly for granting living allowances to villagers, paying social security funds for villagers and conducting job training. According to the consultation between villagers’ committees and villagers who operate fish ponds, the final resettlement measures are as follows: All the affected villagers by land acquisition will join social security program;

The compensation for young crops on requisitioned land shall be paid according to the actual losses caused to peasant households who operate the land. The compensation for land acquisition shall be managed by villages, and the use shall be decided at villagers’ representative meeting, mainly in public utilities.

6.4 Rehabilitation of Affected Enterprises and Public Institutions

The World Bank Financed Wuhan Urban Transport Project totally affects 21 enterprises and public institutions which are mainly located at Shuidong Section of Second Ring Line and downward extension line of Jiefang Avenue. Because both sides of the lower extended section are to be widened, only green belts and some temporary shops with street frontages will be affected, and very few enterprises and public institutions will really be affected. The same with the situation of land use in present Hepinggang, land use along Shuidong Section of Second Ring Line is mostly controlled by water supplies department, and therefore operation of few enterprises will be disturbed. According to the survey, only 3 out of 21 enterprises and public institutions will be heavily affected in production and operation or normal work and needed to be relocated, that is, Hongjin Recreation City at Shuidong Section of Second Ring Line and two filling stations at downward extension line of Jiefang Avenue. Hongjin Recreation City is not far away from the crossing of Shuidong Section and Heping Road and needs to be completely relocated. It is an unlicensed builindg set up on the land controlled by water supplies department. This project will give monetary compensation to it according to the compensation policy for unlicensed buildings. The two filling stations may rehabilitate their normal operation nearby.

Table 6-2 Situation of influence on enterprises and public institutions and resettlement measures

Influence on Removal Name of organization Description of situation of influence production and Resettlement measures area operation I. Shuidong Section of Second Ring

Line Located at west of Luojiagang, it is a Direct monetary Hongjin Recreation City 5224 place for leisure and recreation, which Complete relocation compensation should be completely relocated. To be reconstructed Located at east of Luojiagang, it mainly New store houses, Chailin Real Estate Company 3636 backwards nearby; direct leases out store houses remain unused monetary compensation As it is bankrupted Direct monetary There are two parts: bankrupted unused and unused, there is compensation plant buildings; residential district of the Hubei No. 1 Construction Company 10721 no influence on the company, where 81 households should production and be relocated. operation. Only the enclosing wall and a temporary The normal The enclosing wall will be building with small area are to be production and reconstructed for Yuanlong Chemical Plant 124 relocated, and therefore the normal operation will not be continuing production. operation will not be affected. affected. The normal Another warehouse nearby The material warehouse should be Jingang Furniture Factory 2750 production will not will be obtained for relocated. be affected. continuing production. Construction machines and tools The abandoned buildings should be The production will Direct monetary 590 leasing department, Hongshan relocated. not be affected. compensation

District, Wuhan The enclosing wall and a small quantity The influence on The production layout will Compensator Expansion Joint Hubei of sheds should be relocated, and the 230 production is be adjusted for continuing Co., Ltd. normal production and operation will limited. production locally. not be impacted. Temporary buildings with shop fronts, constructed for Dongbian Village, Only five shops will To be reconstructed Chailintou Village 2344 Luojiagang, in which only a small be affected. backwards nearby. number of shop fronts have been leased out, and most are left unused. Thirty small shops Waste and used products market set up collecting waste and To be reconstructed Tieji Village 1050 for Tieji Village used products will backwards nearby. be affected. Building materials & decoration market No proprietors will To be reconstructed Donghu Village 7283 newly established for Donghu Village, be affected. backwards nearby. which has not been leased out yet. II. Downward extension line of

Jiefang Avenue The operation of House with shop fronts built in front of To be moved backwards Jiang’an District Education three self-employed 391 the residential building of the Education for establishing new house Commission households is Commission. with shop fronts. affected. The corridor of outpatient hall of Erqi The normal Street Community Hospital; The main operation of the Erqi Hospital 504 Monetary compensation. structure of the hospital will not be hospital will not be relocated. affected.

It should be moved Brick-wood building set up on the Monetary compensation; Registration point of Lanjian Driving backwards for a 60 courtyard wall of the agricultural To be moved backwards School distance of five machinery market nearby. meters or so. The normal Agricultural Machinery Market of A gatehouse beside the enclosing wall of production and 18 Monetary compensation. Hubei Agricultural Machinery Group a courtyard. operation will not be affected. It should be To be moved backwards Erqi Filling Station of Sinopec 84 The ceiling of the station relocated. nearby. Guardhouses at railway crossings on They should be To be reconstructed Guardhouses at railway crossings 98 both sides of the road, with brick-wood completely backwards nearby. structure relocated. It should be To be moved backwards Danxi Filling Station of Sinopec 90 The ceiling of the station relocated. nearby. It should be moved backwards for five To be rehabilitated and Wuliang Equipment Company 130 Building with shop fronts for hire. meters, and the reconstructed locally for operation will be continuing operation. affected. It should be moved No. 15 Engineering Company of for four meters or To be reconstructed Second Shipping Board of China 525 A five-story office building so. Consultation is backwards nearby. Harbor ongoing with an aim to avoid relocation. Abandoned collective houses near the The production and Xingfu Village 285 Monetary compensation gate of Zhujiahu. operation will not be

affected. The production and Jiang’an Vehicle Factory 11200 Moved to East Lake Development Zone operation will not be Monetary compensation affected.

6.5 Resettlement and Rehabilitation of Affected Shops

Along road network improvement subprojects, 218 shops (totally 556 jobholders) are to be relocated. According to the resettlement survey, all kinds of shops to be relocated from Jiefang Avenue and Shuidong Section of Second Ring Line have different characteristics, and the resettlement measures will also differ. 1) Shops along Jiefang Avenue Along Jiefang Avenue, 97 shops are to be relocated and 250 business personnel will be affected. Such shops will be compensated at rates for houses for business use. After road reformation, the shops will be moved backwards nearby to form new shop fronts, and current jobholders may continue their operating activities. In order to minimize and mitigate the influence of construction on these shops, during the construction of this project, some optimized methods of construction will be adopted to lighten the influence on normal operation; First, stage construction is implemented, and relocation is only performed for stages during which construction is necessary, to shorten the business shutdown period; Second, during construction, necessary passages will be left to guarantee the normal operating conditions of shops that will not be relocated. 2) Shops at Shuidong Section of Second Ring Line Totally 121 shops (306 persons) at Shuidong Section of Second Ring Line are to be relocated, which could be divided into two kinds: Forty-three shops are rebuilt on the basis of residential houses. They will be compensated according to the rates of residential housing. In addition, for the actual operation area, compensation will be given otherwise according to the rate of 600 Yuan/. Seventy-eight shops are shop fronts leased out by Hubei No. 1 Construction Company, Chailin Village and Tieji Village. Such shops are to be relocated during the construction of Shuidong Section of Second Ring Line, and their operation will be impacted. However, more shops will be established on both sides of the road after construction. Present shopkeepers will have priority to lease the new shops. In order to support the construction of Shuidong Section, Tieji and Chailin villages have established two new markets capable of accommodating 40 and 50 shops respectively in Luojiawan district. These shops can be put into operation according to current leasing conditions, and therefore the normal operation of affected shops may be fully guaranteed. For the productive buildings and equipment, following compensation will be

given: the relocation and installment fee of the equipment. the equipment that can not be rehabilitated will be compensated with the depreciated value. the lost of surplus will be calculated by six months’ salary lost of the registered staff.

6.6 Rehabilitation of Specialized Facilities

The specialized facilities affected by this project mainly refer to electric power and telecommunication facilities, for which the Resettlement Division will pay compensation by replacement costs on the basis of full consultation with power and telecommunication departments. These facilities will be rehabilitated and reconstructed before land acquisition is implemented, so as to ensure the normal production and livelihood of local population. The relevant costs will be counted in the construction budget estimate.

6.7 Resettlement and Rehabilitation of Affected Vulnerable Groups

All levels of resettlement offices and grass-root governments will give special assistance and care to vulnerable families involved in the resettlement plan. The main measures are as follows: The project office will provide the following safeguards to the determined vulnerable families: Vulnerable families will be listed as the first buyers of subsidized housing to guarantee their source of housing. For the vulnerable families which prefer monetary compensation, their floor space equal to or less than 20 will be compensated as 25 ; Floor space of 20-30 will be compensated as 30. A certain amount of living subsidy is given to the relocated families which are covered by the lowest living standard security system for urban residents or are with disabled member(s) or both. As far as the project office knows, recently Wuhan municipal government is about to stipulate a favorable policy for the disabled. If the policy is to come into

impacts during the project implementation, the project office will strictly follow the policy, which mainly contains: a sum of 20,000CNY will be granted as living subsidy to all relocated families covered by the lowest living standard security for urban residents; a sum of 20,000CNY will be given as living subsidy to each relocated families with disabled member(s); the doubled sum, viz. 40,000CNY, will be compensated to the relocated families which both are covered by the lowest living standard security system and have disabled member(s). Those who are willing to choose low-rent housing will be involved in the annual low-rent housing plan through their communities. Vulnerable families have priority to choose the area, type and location of subsidized housing. All levels of resettlement organizations are responsible for arranging personnel to help relocation of vulnerable families. The Resettlement Division of WMOFFFUCP will disburse a fund of RMB 2,000,000 Yuan from the resettlement management cost for supporting the vulnerable groups according to specific needs. The fund will be used in strict accordance with the regulation of openness and transparency.

6.8 Schedule of Resettlement and Rehabilitation

The civil engineering of this project is planned to be commenced in Jan. 2010. In order to guarantee that affected population and organizations will be properly resettled, land acquisition and resettlement will be finished prior to civil engineering. See Table 6- 2 for the schedule of all kinds of resettlement activities.

Table 6-3 Schedule of resettlement activities

2008 2009 2010 2012 Content of activity 2 4 6 8 10 12 2 4 6 8 10 12 1 2 3 4 5 6 7 8 9 10 11 12 12 Establishment of project resettlement office Establishment of resettlement office at all levels Land acquisition survey Preliminary consultation on resettlement plan Resettlement action plan (draft) Supplementary survey Revision of resettlement action plan Second consultation on resettlement plan Perfection of resettlement plan Approval of resettlement plan Commencement of resettlement

Internal monitoring External monitoring

7. Budget and Management of Resettlement Fund

7.1 Composition of Resettlement Fund

The resettlement cost of this project mainly comprises four parts, i.e. land acquisition compensation, relocation compensation, compensation for all kinds of attachments, other relevant costs, administrative cost, and contingency cost.

7.1.1 Land acquisition compensation

Land acquisition compensation includes compensation for land taking and all kinds of taxes. It includes land-use compensation fee, use fee of newly increased land for construction, farmland use tax, land acquisition management fee, and all kinds of other taxes.

7.1.2 Relocation compensation

Relocation compensation includes: (1) Compensation for private houses This is calculated according to floor space and compensation rates of private houses in urban and rural areas. (2) Compensation for enterprises and pubic institutions This is calculated according to the type and floor space of buildings to be relocated of enterprises and public institutions. (3) Moving allowances, transition allowances and operating losses The moving allowances and transition allowances for relocation of private households as well as enterprises and public institutions are calculated by compensation rates. Operating losses are compensated according to regulations and actual consultation results. (4) The families which move on schedule will be awarded with an amount of money.

7.1.3 Compensation for various attachments and public facilities

Attachments to the ground of private households and of enterprises and public institutions as well as public facilities are compensated according to actual quantity acquired in the survey and compensation rates.

7.1.4 Other relevant costs

Some other costs incurred during the preparation and implementation of resettlement, e.g. resettlement monitoring & assessment fee paid to independent monitoring organization, expenses paid to professional organizations for measuring and assessing objects to be relocated, fees paid to relocation agencies, fees for cleaning relocated buildings. These costs will be determined according to industrial standards for collecting fees or standards of similar projects.

7.1.5 Administrative cost

The administrative cost is 5% of the direct resettlement expenses, mainly for the enhancement of agencies relevant to the land acquisition and relocation, organization coordination, internal monitoring, office work and foreign receptions, on-the-job trainings, award for the land acquisition progress of the project implementation units, information collection and release, preliminary preparation, office building purchase, rental of temporary office buildings, wages and welfare, purchase and use of transport vehicles, vehicle maintenance, communication office work and daily management.

7.1.6 Contingency cost

Contingency cost includes materials and prices, which will be 10% of the basic cost.

7.2 Resettlement Fund Budget

According to the compensation rates and statistical data of all kinds of affected items, the total resettlement fund of the World Bank Financed Wuhan Urban Transport Project is RMB 1321323074.89 Yuan. See Table 7-1 for detailed fund budget.

Table 7-1 Table of resettlement fund budget of Wuhan Urban Transport Project

Compensation No. Item Unit Quantity Amount rate I Basic expenses Ã Ã 1 Land acquisition fees Ã Ã Compensation for Ã acquisition of mu collectively-owned land Vegetable land and fish mu pond Construction site mu Other land mu

Use fee of newly-added

land for construction Farmland reclamation fee mu 15000 Farmland use tax 10 Compensation for Ã acquisition of state-mu owned land Class I land mu Class II land mu Class III land mu Class IV land mu Land acquisition Ã Ã management cost (1.5% of land acquisition cost) Compensation for Â Â 2 Yuan relocation of houses Compensation for Ã

relcoation Houses Ã

Operation Ã Moving Ã household allowance Transition Ã Ã

allowance Moving reward household Ã Compensation for 3 attachments Supporting fund for 4 vulnerable groups II Relevant costs Ã 1 Fees paid to relocation agencies (1.8% of basic expenses) Resettlement monitoring & assessment fee (0.4% of basic 2 expenses) Relevant costs for relocation cleaning, employment assessment 3 and auditing agencies (1.8% of basic expenses) III Administrative cost for the resettlement (5% of basic expenses) X Contingent expenses (10% of basic expenses) Total 7.3 Receivers and Flow Direction of Resettlement Fund

7.3.1 Resettlement fund receivers

The resettlement fund of this project will be allocated to different receivers according to the property rights of affected items. See Table 7-2 for details. For the sake

of full and timely payment of compensation to affected people and organizations, the roles of independent monitoring organization, internal monitoring organization and national auditing body will be given full play to, and intermediate links will be minimized for paying the resettlement fund in a simple and convenient way.

Table 7-2 Resettlement fund receivers

Receiver Expense category Public Relocation compensation, removal compensation, transition institution allowances, and compensation for attachments to the ground. Relocation compensation, removal compensation, transition Enterprise allowances, and compensation for attachments to the ground and operating losses. Land compensation, compensation for attachments, compensation for Village collectively-owned facilities Compensation for house relocation, attachments and young crops Household (only for families whose young crops are requisitioned), moving allowances, and transition allowances. Other All kinds of land acquisition taxes departments

7.3.2 Source and flow direction of resettlement fund

The resettlement fund of the World Bank Financed Wuhan Urban Transport Project is raised by the Urban Construction Fund Office of the People’s Government of Wuhan City. The office or the banks specified and entrusted by it will directly pay the fund through special account to receivers to avoid retain or embezzlement of fund.

7.4 Payment, Management and Monitoring of Resettlement Fund

7.4.1 Payment of resettlement fund

The payment of resettlement fund will be implemented in conformity with the following principles: All the expenses related to land acquisition will be counted in the total construction budget estimate. Subproject implementing agencies should review the respective compensation fees and apply for payment of the WMOFFFUCP for Urban Construction.

The Urban Construction Fund Office will directly pay compensation fees by special accounts to relevant organizations and personnel; The specified banks should directly pay all kinds of compensation fees through special account to affected families before relocation is implemented; Land compensation should be paid before land acquisition is implemented.

7.4.2 Management and monitoring of resettlement fund

The payment of resettlement fund must be implemented in strict accordance with relevant laws and regulations of the state on land acquisition and relocation as well as the policies in Resettlement Action Plan, and should not be lower or less than the compensation rates and range stipulated in the plan. Each subproject executive unit should report monthly construction scheduling to Wuhan Foreign Investment Office. The subproject executive units should submit reviewed payment reports with signatures of principles in charge to WMOFFFUCP for payment. WMOFFFUCP will disburse construction progress payment accordingly, and the Urban Construction Fund Office will give payment to affected objects directly. Each subproject office is responsible for supervising the use of payment. Each subproject executive unit should examine and approve land compensation, housing compensation, compensation for attachments, compensation for physical relocation (including indoor facilities), moving allowances, transition allowances, rewards for ahead-of-schedule relocation, and losses of small businessmen and of enterprises and public institutions. WMOFFFUCP will engage consulting organizations to conduct regular internal check of use of resettlement fund of resettlement offices. The financial department and auditing department of the city are entitled to monitor and audit the use of the special fund. The independent monitoring organization will carry out special follow-up monitoring of the payment of compensation for affected families and enterprises and public institutions.

8. Resettlement Organizations

8.1 Organizational Structure

In order to well implement the resettlement of Wuhan Urban Transport Project, all levels of governments of Wuhan City guarantee the preparation of the project and the smooth progress of resettlement by establishing and strengthening relevant organizations. Since Sept. 2008, the organizations with definite responsibilities for resettlement of Wuhan Urban Transport Project (Phase II) have been set up one after another. The main organizations concerned include: Urban Construction Fund Office of the People’s Government of Wuhan City WMOFFFUCP Resettlement Division of WMOFFFUCP Subproject implementing agencies Independent Monitoring Organization—Center for Involuntary Resettlement Research, Wuhan University See Table 8-1 for the structure of resettlement organizations.

Table 8-1 Resettlement organizations for Wuhan Urban Transport Project

Urban Construction Fund Office

WMOFFFUCP

Resettlement Division Independent of WMOFFFUCP Monitoring Organization

Subproject Resettlement Implementing Agencies

Affected households, villages, and enterprises and public institutions.

8.2 Responsibilities of Organizations

8.2.1 Urban Construction Fund Office of the People’s Government of Wuhan City

·As the project owner, it is responsible for submitting all the plans and reporting work pertinent to resettlement to national, provincial and municipal departments for approval and comments. ·Be responsible for raise resettlement fund ·Be liable for payment of resettlement fund.

8.2.2 WMOFFFUCP

·Entrusting resettlement consultation institutions to make first-phase preparations for resettlement ·Applying to relevant department for land planning license and land use and construction license ·Coordinating with relevant departments to work out policies of Resettlement Action Plan ·Aligning the progress of project construction with the Resettlement Action Plan ·Reporting the resettlement fund plan to the Urban Construction Fund Office and supervising the payment of fund ·Coordinating work of relevant organizations

8.2.3 Resettlement Division of WMOFFFUCP

·Implementing first-phase preparations for resettlement together with resettlement consulting organizations ·Setting forth all the policies of Resettlement Action Plan ·Training persons in charge of resettlement of subprojects ·Reporting resettlement progress to WMOFFFUCP ·Reporting work of communication and coordination with other departments during resettlement implementation to WMOFFFUCP ·Verifying resettlement fund plans of subprojects ·Submitting resettlement fund plan to the Urban Construction Fund Office and supervising the payment of fund ·Directing and supervising the implementation of subproject resettlement ·Managing data file on resettlement ·Carrying out internal monitoring of resettlement

·Receiving resettlement specialist of the World Bank at stages of preparation and implementation ·Dealing with grievance and appeals of displaced persons in the process of resettlement ·Communicating with independent organization in the process of resettlement implementation

8.2.4 Subproject implementing agencies

·Organizing detailed resettlement survey of subprojects ·Implementing subproject resettlement ·Determining and submitting subproject resettlement fund plans ·Tracing and supervising the practical payment of subproject resettlement fund ·Dealing with grievance and appeals of displaced persons in the process of resettlement ·Coordinating with independent monitoring organization ·Collecting and sorting out all kinds of information needed for internal monitoring report ·Submitting subproject resettlement files to the Resettlement Division of WMOFFFUCP · Receiving the World Bank resettlement specialists for inspection together with the Resettlement Division

8.2.5 Independent monitoring organization

During the implementation of resettlement plan, the independent monitoring organization is responsible for external monitoring of resettlement and for submitting resettlement progress reports and supervision reports to project resettlement office and the World Bank. The responsibilities of this organization are described in detail in the chapter concerning external monitoring.

8.3 Personnel and Facilities of Resettlement Organizations at All Levels

There are five personnel in the project resettlement executive agency. They are very capable of implementing organization and coordination, have rich experience in resettlement, and are skillful in using computers. All district and street (township) resettlement organizations comprise high-quality and experienced personnel, and

therefore can completely meet the requirements of resettlement. See Table 8-1 for personnel roster. WMOFFFUCP has provided computers for each subproject resettlement office. See Table 8-2 and 8-3 for personnel and facilities of subproject resettlement organizations at all levels.

Table 8-1 Personnel of resettlement offices at all levels for Wuhan Urban Transport Project

Resettlement organization Person in charge Personnel Resettlement Division of Cao Linghua, Zhou Ting, Zhao Weimin WMOFFFUCP Wang Hong Jiefang Avenue Resettlement Office Resettlement Executive Agency at Shuidong Section of Second Ring Line Resettlement Executive Agency for the Public Transport Priority Corridor Subproject Office of Independent Monitoring Yu Jiang, Wei Shan, Li Kui, Zhong Shuiyin Organization Yang Ling

Table 8-2 Arrangement of personnel of resettlement organizations at all levels

Total Resettlement number of Personnel and qualification Work duration organizations personnel Personnel who are proficient in Resettlement foreign language, computer and Oct. 2008- completion of Division of 5 engineering technology and resettlement WMOFFFUCP familiar with resettlement policies The person in charge has more than five years of experience in Jiefang Avenue Jan. 2010- completion of 7 resettlement, with an educational Resettement Office resettlement background of three-year college or above level. Resettlement The person in charge has more Office at than five years of experience in Shuidong Jan. 2010- completion of 7 resettlement, with an educational Section of resettlement background of three-year college Second Ring or above level. Line

Resettlement Office for for The person in charge has more the Public than five years of experience in Jan. 2010- completion of Transport 3 resettlement, with an educational resettlement Priority background of three-year college Corridor or above level. Subproject Office of Long-term experience in similar Jan. 2010- completion of Independent work, with an educational 5 assessment of Monitoring background of postgraduate or resettlement Organization above level.

Table 8-3 Facilities of resettlement organizations at all levels

Organization Computer Camera Vehicle Office () Resettlement Division of 3 1 2 50 WMOFFFUCP Jiefang Avenue Resettlement Office 1 1 1 100 Resettlement Office at Shuidong 1 1 1 100 Section of Second Ring Line Resettlement Office for for the Public Transport Priority 1 1 1 50 Corridor Subproject Office of Independent Monitoring 5 1 1 100 Organization

8.4 Measures for Improvement of Capabilities of Organizations

In order to improve the quality of personnel of resettlement organizations at all levels, to let them become familiar with relevant laws and regulations on resettlement and have a better understanding of the requirements of displaced persons, and to guarantee the smooth progress of resettlement, the Resettlement Division of WMOFFFUCP have trained the personnel and enabled them to grasp the national policies and laws on resettlement as well as the World Bank operational policies on involuntary resettlement OP4.12/BP4.12. See Table 8-4 for finished training.

Table 8-4 Schedule of operational training of resettlement personnel

Training Content Trainee Time No. organization A B C D To learn the experiences in WMOFFFUC resettlement of World Bank Project resettlement Oct. 2008.10-Apr. 1 P financed projects of other Division 2009 provinces Resettlement Resettlement work process, Project resettlement Division of 2 training of resettlement and division, subproject Nov. 2008 WMOFFFUC survey resettlement offices P Resettlement Division of Computer operation and Project Resettlement 3 Dec. 2008 WMOFFFUC data processing Division P Resettlement To learn national laws on Division of resettlement and the Project Resettlement Dec.2008-Jan. 4 WMOFFFUC operational policies of the Division 2009 P World Bank Resettlement Procedure, management and Division of Subproject Jan.2008-Feb. 5 supervision of fund WMOFFFUC resettlement offices 2009 payment P Resettlement Division of Resettlement information Subproject 6 Feb. –Apr. 2009 WMOFFFUC processing method resettlement offices P Sub- Work process and policies of Subproject 7 resettlement Mar. 2009 resettlement resettlement offices office Resettlement Project Division of World Bank resettlement Resettlement Office, 8 Mar. 2009 WMOFFFUC policies subproject P resettlement offices Resettlement Project Resettlement Division of Latest resettlement policies of 9 Office, subproject Mar. 2009 WMOFFFUC China resettlement offices P Resettlement Project Resettlement Experiences in resettlement of 10 Division of Office, subproject Mar.-Apr. 2009 other cities in China WMOFFFUC resettlement offices

8.5 Plan for Improvement of Capabilities of Organizations

In order to implement Resettlement Action Plan successfully, guarantee the interests of affected population, and satisfy the overall project schedule, the Project Resettlement Office will take the following measures to strengthen the capabilities of organizations and improve efficiency. 1. Leadership Responsibility System: Responsible leaders of district governments will organize relevant departments including development and reform commissions to form a strong leading group. 2. Arrangement of high-quality personnel: Personnel of resettlement organizations at all levels should have the idea of considering the overall situation, good grasp of policies and professional abilities, especially experience in mass work. 3. Determination of responsibilities: To determine the responsibilities of resettlement offices at all levels according to the requirements of the World Bank and relevant national laws and regulations. 4. Training of resettlement personnel: To give irregular training on resettlement policies and information management to resettlement personnel according to actual needs. 5. Supervision by the public: All the resettlement information will be released to the public for supervision. 6. Provincial resettlement office will hold irregular resettlement report meetings and issue relevant briefings to subprojects. 7. Project office will provide necessary vehicles and office facilities for resettlement organizations at all levels to meet their needs. See Table 8-5 for plan of reinforcement and training of organizations in future.

Table 8-5 Schedule of operational training of resettlement organizations in future

Training Content Trainee Time No. organization A B C D To learn and investigate Personnel of project Project experiences in resettlement division 1 Resettlement resettlement of the World 2009 2010 and subproject Division Bank financed projects of resettlement offices other provinces 2 Cemter for Resettlement policies of Personnel of project Oct. 2009 Involuntary the World Bank resettlement division

Involuntary the World Bank resettlement division Resettlement and subproject Research, Wuhan resettlement offices University Cemter for Personnel of project Involuntary The latest change of resettlement division 3 Resettlement resettlement policies of Oct. 2009 and subproject Research, Wuhan the state resettlement offices University Personnel of project Project Experiences and lessons of resettlement division 4 Resettlement Oct. 2009 resettlement of other places and subproject Division resettlement offices Personnel of project Project Computer operation and resettlement division 5 Resettlement data processing and subproject Division resettlement offices Work process and policies Street (township) Subproject of resettlement of the resettlement offices, 6 resettlement Dec. 2009 World Bank Financed village-level office Project resettlement groups Street (township) Subproject Resettlement policies and resettlement offices, 7 resettlement Dec. 2009 practices village-level office resettlement groups Personnel of project To investigate international resettlement division 8 WMOFFFUCP 2010 2011 resettlement experience and subproject resettlement offices

9. Public Participation and Negotiation

In order to make the resettlement work of World Bank financed Wuhan Urban Transport Project base on a feasible and reliable foundation, ensure the lawful rights and interests of displaced persons and relocated enterprises and reduce dissatisfaction and dispute, the project attaches great importance to the participation and negotiation of displaced persons. Resettlement Action Plan is prepared on the basis of full negotiation with affected population and information disclosure. Therefore, in the decision process of the planning, design and implementation of the project, Resettlement Division of WMOFFFUCP of the World Bank Financed Project and all levels of resettlement offices together with all the consultant institutions take the opportunities of socioeconomic surveys and social impacts evaluation to propagandize the background of the project in various ways, take counsel with all kinds of affected population and negotiate about common concerns. Public participation and negotiation provide basis for the improvement of resettlement plan.

9.1 Public Participation and Negotiation Activities Carried out up to Now

As to all significant topics for discussion involved in the planning stage of resettlement, the project resettlement office has organized design organizations, consultant organizations, local resettlement departments and affected population to disclose information and conduct negotiation in various ways. Main disclosure and negotiation activities so far are shown in Table 9-1.

Table 9-1 Main activities of resettlement information disclosure and negotiation

Content of No. Time disclosure and Participant Organizer negotiation The design institute, Project Resettlement Division of Project Resettlement 2008 Optimation of WMOFFFUCP, subproject Division of 1 12 2009 project design resettlement offices, WMOFFFUCP, 1 scheme representatives of village subproject collectives and affected resettlement offices population 3 2008 Amount of land Wuhan University, Project Project Resettlement

12 2009 requisition and Resettlement Division of Division of 1 relocation WMOFFFUCP, subproject WMOFFFUCP, resettlement offices, affected subproject enterprises, affected population resettlement offices Project Resettlement Division of Project Resettlement WMOFFFUCP, subproject Compensation Division of 2009 1- resettlement offices, 4 rate for land WMOFFFUCP, 2009 3 representatives of local village, requisition subproject group collectives and affected resettlement offices population Project Resettlement Division of Project Resettlement WMOFFFUCP, subproject Division of 2009 1- Compensation resettlement offices, 5 WMOFFFUCP, 2009 3 rate for houses representatives of local village, subproject group collectives and affected resettlement offices population Liaoning Academy of Social Project Resettlement Sciences, Project Resettlement 2008 Division of Social impacts of Division of WMOFFFUCP, 6 12 2009 WMOFFFUCP, the project subproject resettlement offices, 3 subproject affected population, affected resettlement offices enterprises and institutions Wuhan University, Project Project Resettlement 2008 Resettlement Division of Division of Resettlement 7 12 2009 WMOFFFUCP, subproject WMOFFFUCP, mode and desire 3 resettlement offices, affected subproject enterprises, affected population resettlement offices Project Resettlement Project Resettlement Division of Division of 2009 1—Resettlement WMOFFFUCP, subproject 8 WMOFFFUCP, —2009 3 policies resettlement offices, affected subproject enterprises and institutions resettlement offices Project Resettlement Project Resettlement Division of Negotiation on Division of 2009 2— WMOFFFUCP, subproject 9 resettlement WMOFFFUCP, —2009 3 resettlement offices, affected locations subproject population resettlement offices Project Resettlement Project Resettlement Division of 2009 Resettlement of Division of WMOFFFUCP, subproject 10 2 2009 enterprises and WMOFFFUCP, resettlement offices, affected 3 institutions subproject enterprises and institutions resettlement offices

In September 2008, the delegation of World Bank evaluated the content of the project. From December 2008 to January 2009, according to the result of evaluation, Center for Resettlement Research, Wuhan University carried out a relatively large-scale questionnaire about opinion and advice of public participation for affected areas. It selected a family member above 15 years old from 108 affected households on whom the questionnaire survey was conducted. The summarized results of the survey are shown in Table 9-2.

Table 9-2 Summarized table of public opinions and advices

Content of survey Opinion or advice Proportion (%) . Be clear about the construction or not (single choice) NA 0.87 1 Clear 25.76 2 Not so clear 32.31 3 Not clear 41.05 . Support the construction of the project or not (single choice) NA 2.18 1 Support 62.88 2 Don’t support 27.07 3 Don’t care 7.86 . Potential advantages of the construction of the project (multiple choices) 1 Convenient traffic 75.65 2 Investment opportunity 21.30 3 Employment opportunity 16.09 4 Market information 12.23 5 Others 7.86 . Potential disadvantages of the project (multiple choices) 1 Inconvenient 5.22 2 Environmental impacts 19.57 3 Scarcity of land 30.43 4 Others 25.65 . Be clear about land requisition or relocation compensation policies or not (single choice) NA 3.91 1 Clear 7.83 2 Not so clear 20.43 3 Not clear 67.83 . Opinions and advices on land requisition and relocation of the project (multiple choices) 1 Reduce relocation as much as possible 33.91

2 Reduce land requisition as much as 13.60 possible 3 Make traffic as convenient as possible 22.61 4 Take the convenience and safety of citizens’ traffic along the lines into full 67.83 consideration . Desire for reconstruction of houses (only for rural households, multiple choices) 1 Unified planning and centralized 86.96 construction 2 Freely select house site and submit to 12.22 the village for approval 3 Be given money compensation and 30.43 purchase house by oneself . Opinions on the use and allocation of land compensation funds and labor resettlement fee (only for rural households, multiple choices) 1 All are allocated to affected households; cropland is not to be 5.6587.83 adjusted; and affected population seek jobs by themselves 2 All are controlled and used by the 7.39 collectives and land is to be adjusted. 3 Part of them are allocated to directly or indirectly affected households and then 5.65 land is to be adjusted 4 All are invested to develop enterprises 87.830.87 and land is not to be adjusted. 5 Offer employment opportunities other 5.65 than peasants . Desire for relocation of houses (only for urban households, multiple choices) 1 Implement relocation with material 84.70 objects; and supply relocation houses 2 Implement money relocation 7.76 3 Implement the combined relocation of material objects and money; and 17.35 relocated household choose by themselves. 4 Have no opinion of one’s own and obey 3.20

to the arrangement of the government Source: Socioeconomic survey data of World Bank Financed Wuhan Urban Transport Project

The following several conclusions can be drawn from the analysis of statistical data in Table 9-2: Firstly, in the aspect of the extent of acquaintance with the project, survey data show that affected population are not so acquainted with the background of the project and relocation compensation policies. Only about 1/4 of the respondents is clear about the background of the project while the other 3/4 of them are not clear or not so clear about it, especially for the definite land requisition and relocation time; and in the aspect of compensation policies, about 90% of them are not clear or not so clear about land requisition or relocation policies. At the same time, it is also found that those who are not clear are mainly peasants, since many of them haven’t received the information relevant to the project through formal channels. This indicates that the project needs improvement in the matter of propaganda. It is advised to enhance propaganda, make use of various propaganda methods like television, broadcast, etc., and transmit relevant information of the project widely. Meanwhile, public participation needs to be strengthened to give affected population profound understanding and sufficient knowledge of the project. Secondly, in the aspect of opinions of the project, most of affected population supports the implementation of it. About 70% of respondents support or don’t oppose the construction of the project. And when it comes to the advantages and disadvantages of the project, 3/4 of them believe that the best advantage of the project is more convenient traffic and then comes investment opportunities. As to the disadvantages, the worst disadvantage is considered to be the scarcity of land and about 1/3 of them holds this opinion. The advices on the project focus on two aspects: one is taking the convenience and safety of citizens’ traffic along the lines into full consideration; and the other is reducing relocation. Thirdly, as to desires for relocation of houses, the majority of villagers favor the mode of unified planning and centralized construction by integrating the ongoing “villages within the city” reconstruction project. However, urban residents are prone to implementation of relocation with material objects and supply of relocation houses; the combined relocation of material objects and money follows; and they are not interested in the simple money relocation mode.

Fourthly, in the aspects of the use and allocation of land compensation funds and labor resettlement fees of villagers, respondents are more prone to directly get the land compensation instead of land adjustment. In the aspect of employment, residents are more prone to seek jobs by themselves and are not interested in employment opportunities other than peasants.

9.2 Feedback on Public Participation and Negotiation

From December 2008, the Center for Resettlement Research, Wuhan University carried out socioeconomic surveys for affected population, generalized and summarized the opinions and advices put forward by them, timely fed back to engineering design organizations, and fully considered and absorbed these opinions and advices when formulating resettlement action plan. Feedback on public participation and negotiation up to now is shown in Table 9-3.

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Table 9-3 Feedback on public participation and negotiation of World Bank Financed Wuhan Urban Transport Project

Item Problem Reason and result Measures for improvement Try to avoid or reduce the compact districts of houses It makes residents lose passed through in the The construction of original houses. And part Land design of the project. urban traffic will of residents with rent requisition and Provide money occupy many incomes as their main relocation resettlement and houses. sources may lose original resettlement in material income sources. objects to be selected by the relocated households. The construction of The construction of Try to avoid or reduce the urban traffic will Shuidong Section and main workshops of exert certain impacts Jiefang Avenue may enterprises and main office on the production affect the normal business buildings of institutions and operation of operation of some passed through in the part of enterprises enterprises design of the project and institutions. Elaborately arrange the construction and carry out The widening of The construction of the construction that amy Downward extension line urban traffic will affect the school at of Jiefang Avenue passes affect teaching of vacation time; meanwhile, the school gate of Erqi individual schools isolation measures are Middle School, so the and safety of taken to guarantee the teaching of the school students traffic safety of teachers may be affected and students and avoid noise interference

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Item Problem Reason and result Measures for improvement Determine the affected scope as soon as possible and inform affected population of them timely. Relocated households and Badly informed. So relocated households tenants will be affected Most of residents, can build new houses and may not arrange their particularly for timely and tenants can own living timely. peasants, haven’t arrange their living in Residents who live on received relevant advance. rental will be confronted information of the At the same time, it is with the risk that tenants project through advised that relevant leave in advance and formal channels, information of the project houses are vacant while especially for should be widely spread to tenants will also be definite land give affected population confronted with the risk requisition and profound understanding that living or operation relocation time. and sufficient knowledge can’t be arranged fully. in popular ways, such as broadcast, television, local drama, playlet, song, regular meeting, etc. The masses are The resettlement divisions The compensation and concerned about the should bulletin relevant allocation of the funds are compensation and compensation rate before related to living support allocation of the the construction and make of relocated households. funds. the masses well-informed. It is advised that strict institutional and financial disclosure should be implemented, such as disclosure of compensation Compensation rate, measurement size, funds evaluation grade, etc. After Some residents worry that the determination of Allocation mode of compensation funds compensation funds, they compensation funds. won’t be allocated fully should be pasted for or will be held back. disclosure and subject to the participation and supervision of affected population. Compensation funds are directly allocated to the peasants in the form of bankbooks.

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Item Problem Reason and result Measures for improvement The lines will cause damage to original power and communication Try to reduce damages to facilities (e.g. wire existing public facilities; stands, transformers and maintain damaged public The construction of communication facilities or change their the Project will transmission towers) to courses in the process of cause damage to some extent. And water construction to avoid infrastructure to supply facilities and unnecessary conflicts. Try different extents. access roads of some to repair and rebuild Public residents and enterprises damaged public facilities facilities and are also involved, which as well as power and environment exerts negative influence communication facilities. to production and residents’ living. Construct green belts at Because traffic on roads both sides of the road causes a lot of noise, during the project Noise pollution normal work and rest of construction; in special the residents living near road section, sound- to roads will be affected. insulated wall may be set to reduce noise, Publicize the relocation information as early as possible, provide operators Business operators’ wage sufficient time to respond Compensation for and profit losses will not the impact of relocation; operating loss be compensated offer compensation for wage and profit losses according to tax payment Compensation records for commercial The compensation fund shops will be distributed to different persons according Compensation fund will Handling of to ownership: all be retained by the relationship between compensation for house owner, and the owner and will be given to the owner, leaseholder’s interests leaseholder and compensation for will not be secured. decoration, wage and profit losses will be given to the leaseholder. It is advised to build pedestrian bridges or Some auxiliary Auxiliary Traffic facilities for underground passages in facilities are to be facilities crossing the road. places where there are established. schools or the population is dense.

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Item Problem Reason and result Measures for improvement To establish channels for complaints and feedback, for instance, hot line for complaints and suggestion Let displaced persons boxes. To set up a Let displaced share project benefits and consultative system. To

persons take part in promote the enthusiasm hold as many as possible Mass each link of the of local governments at consultation meetings participation project. all levels and the masses. participated by project office, town government, street offices, representatives of village committees and displaced persons. 9.3 Next Negotiation Plan with Affected Population

With the continual advance of the preparation and construction of the project, the Resettlement Division of WMOFFFUCP and subproject resettlement offices will carry out further negotiation activities. Main contents of negotiation include: Concrete opinions of affected population on engineering design Before the construction, all subproject resettlement offices will inform the affected population along the lines of the design information and the specific impacts of the project. At the beginning of the construction, the Project Resettlement Division of WMOFFFUCP will implement exploratory survey along the lines and determine the concrete positions and sizes and so on of structures. For places with which the masses aren’t very satisfied, Project Resettlement Division will organize the design department again to revise the design on the premise that engineering standards are met. Arrangement of compensation for relocated households and payment procedures Measures of enterprises and institutions for avoiding being affected and recovering. How to rehabilitate electricity and water supply functions affected during the construction period Other problems concerned by displaced persons. See Table 9-4 for time arrangement for further consultation meetings of resettlement offices at all levels and displaced persons. According to work arrangement of the Project Resettlement Division, subproject resettlement offices, towns (street offices) and villages (communities) may hold consultation meetings and report relevant

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situations to the Project Resettlement Division. Besides participating in the consultation activities organized by Project Resettlement Division, monitoring departments also should hold meetings on other monitoring problems and collect the complaints and suggestions of affected people, and then provide monitoring information to land acquisition departments at all levels.

Table 9-4 Time arrangement for consultative meetings with displaced persons

Content Time Attendees Project Resettlement Division, design Comments on engineering Oct. 2009 – Jan. department, subproject resettlement design 2010 offices, independent monitoring institution Project Resettlement Division, design Resettlement mode and Jul. 2009 Dec. department, subproject resettlement concrete implementation 2009 offices, independent monitoring plan institution Project Resettlement Division, The whole period Rehabilitation of electricity Subproject and township (street) of project and water supply resettlement offices, independent implementation monitoring institutions The whole period Problems occurred during Resettle offices at all levels and of project the project implementation independent monitoring institutions implementation The whole period Monitoring departments, Project Collection of suggestions of project Resettlement Division, Subproject and and complaints implementation township (street) resettlement offices

9.4 Consultation Modes of Affected Population during Project Implementation Period

1 Direct mode Displaced persons meeting Meetings with representatives of displaced persons or village cadres should be held to collect their key problems and ideas for which the opinions from local government and resettlement office should be obtained. Enterprises and institutions consultative meeting For relocation site, compensation ratio, etc. concerning enterprises and institutions, consensus should be reached with their legal persons or representatives through negotiations.

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Consultation meeting on subproject land acquisition Consultation meeting on land acquisition and relocation should be organized jointly by subproject resettlement offices and held separately. Organize displaced persons to visit the resettlement location and auxiliary facilities for the convenience of their selections. And collect their opinions to improve Resettlement Action Plan. After the meeting, relevant personnel should visit displaced persons and the latter should sign Resettlement Compensation Agreement through full negotiation. 2 Indirect mode Displaced persons may reflect their complaints, ideas and suggestions to village (community) committee and resettlement and monitoring departments at all levels. The resettlement offices should feedback relevant handling ideas.

9.5 Policy Disclosure and Resettlement Information Booklet

In order to let all affected population understand in time and thoroughly the resettlement policy and implementation of the project so that resettlement can be carried out openly and fairly, resettlement agencies at all levels will adopt the following measures: Before December 31, 2009, the resettlement policy and standard will be published in Wuhan Evening News or other media; Each affected village/community should disclose its situation of affected population, compensation rates, resettlement measures, and complaint and appeal channels, and so on in the presence of cadres of village/community, or in other public places; Before December 31, 2009, booklets are available at the public libraries or other public places of affected areas, to which all displaced population may refer at any moment; Provide one Resettlement Information Booklet for each household affected. The following will be listed in detail in the Resettlement Information Booklet: the situations of various affected families, proper compensation policy and compensation rates, project progress, procedures for solving dissatisfactions and complaints of displaced persons. The booklet will be issued prior to the formal commencement of the project, and its pattern is as Attachment-3.

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10 . Complaint and Appeal

Since land acquisition and resettlement relate to various aspects, it is a complicated work. It is inevitable that the displaced persons may be dissatisfied at some matters such as resettlement and compensation and have some complaints during the implementation, as it relates to the benefit of displaced persons. To ensure the complaints of displaced persons can be handled smoothly and rapidly, the resettlement office of the World Bank Financed Wuhan Urban Transport Project will establish a transparent and feasible collecting and handling procedure of dissatisfaction and complaints to deal with such issues objectively and efficiently.

10.1 Means of Collecting Dissatisfaction and Complaints

(1) The report of local resettlement office, which includes complaints of the masses, the progress of resettlement, working measures and existing problems (2) The construction log faxed to the Employer by the construction organizer, which shows whether and how the masses affect the construction (3) The site inspection of the Employ, during which the problems relating to the land acquisition and resettlement may be found (4) Relevant information provided by the independent monitoring organization (5) Letters and visits of the displaced persons (6) Information provided by the workstation of the Employer (7) Relevant problems found by auditor and discipline inspection departments (8) Information on payment of land compensation shown on the fund transfer list provided by the bank (9) Specific survey of internal monitoring agency

10.2 Procedure of Complaining and Appealing

Stage 1 The displaced persons give their oral or written complaints to the village (community) committee or local resettlement office. In case of oral complaint, the village (community) committee or local resettlement office must keep a written record and give a clear reply within 2 weeks. If it is a big issue that shall be submitted to the superior resettlement office, the village (community) committee or local resettlement office shall try to get the comments of the superior resettlement office within 2 weeks.

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Stage 2 If the reply given in the Stage 1 fails in satisfying the complainer, the complainer may appeal to the district resettlement office within 1 month after receiving the decision of Stage 1. The district resettlement office shall make a decision on the appeal within 3 weeks. Stage 3 If the complainer is dissatisfied with the replay of the district resettlement office, he or she may appeal to the Resettlement Office of the World Bank Financed Wuhan Urban Transport Project within 1 month after receiving the reply of stage 2. The Project Resettlement Office will give its comment within 4 weeks. Stage 4 If the complainer is still dissatisfied with the reply of Stage 3, he or she may appeal to civil court within 15 days after receiving the reply.

10.3 The Principles of Handling Complaints

The resettlement offices at various levels must carry out site survey on the complaints of the masses, collect the their opinions and negotiate with them patiently, in accordance with the principles and standards stipulated in the rules and regulations of the state and the Resettlement Action Plan, and give comments objectively and reasonably. The resettlement office shall report those problems that cannot be handled on its own to the superior resettlement office timely and assist the latter in carrying out relevant survey. If the resettlement office of the previous stage fails in giving a reply within the specified period to the complaint, the complainer has the right of appeal. During the resettlement, some special complaints and appeals of women may appear, therefore the project office plans to hire at least 1 female employee for each resettlement team to deal with women’s complaints. The local governmental and non-governmental organizations, such as the Bureau of Civil Affairs and the Women's Association will supervise the resettlement to ensure the rights and interests of the displaced persons, especially that of affected women.

10.4 Contents of the Reply and Ways of Replying to Complaints

10.4.1 Contents of the reply

Brief description of the complaint The result of survey

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The principles and standards stipulated in the rules and regulations of the state and the Resettlement Action Plan Comments on handling the complaint and its basis The complainer has the right of appealing to the superior resettlement office and the civil court and the charges shall be paid by the project organizer.

10.4.2 Ways of replying to complaints

As to the individual complaint, written reply shall be sent to the complainer directly. As to the common complaint, the reply shall be announced in the village (community) meeting or shall be notified to the village or community in the form of formal document. Whatever way of replying is adopted, the replay shall be sent to the corresponding resettlement office of the complainer.

10.5 Record of Complaints and Appeals and Relevant Feedback

During the implementation of the Resettlement Action Plan, the resettlement office shall keep a record of complaints and the results of handling and submit a written report to the Project Resettlement Office, which will carry out a regular inspection on the record of complaints handling. To keep a complete record of the complaints of the displaced persons and the handling of relevant issues, the Project Resettlement Office has designed a record form for this purpose, shown as Table 10-1.

Table 10-1 Record form of complaints and appeals on the resettlement of the World Bank Financed Wuhan Urban Transport Project

Acceptor: Time: Place: Planned Complainer Content Demanded solution Actual handling solution

Complainer Recorder

(Signature) (signature)

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Remarks: 1. The recorder shall register the actual complaint and demand of the complainer. 2. The complaining shall not be disturbed or hindered by any factor. 3. The planned solution shall be notified to the complainer in the specified period. The main contents of this chapter will be publicized to the displaced persons and delivered to each affected household, public institution and business in the form of publicity material before the implementation of resettlement.

10.6 Contact Information for Expressing Complaints and Appeals

The resettlement offices of the districts shall arrange the principles to collect and receive the complaints and appeals of the displaced persons. See Table 10-2 for their names, office addresses, and telephone numbers.

Table 10-2 Information of the organizations and persons for receiving the complaints and appeals of displaced persons

Contact Resettlement organization Address Telephone person Project resettlement Zhao No. 40, Changqing Road, 85885873 office Weimin Hankou, Wuhan City Resettlement office for

Jiefang Avenue Resettlement office for Shuidong Section of Second Ring Line Resettlement office for public transport subproject

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11. Resettlement Monitoring

11.1 Internal Monitoring

11.1.1 Purpose and principles

The internal monitoring indicates the continuous internal monitoring on the implementation of the Resettlement Action Plan carried out by the Employer and the resettlement offices throughout the management system. It aims at obtaining the accurate progress of resettlement timely and integrally, finding and solving problems and providing the basis of decision-making for the smooth implementation of resettlement. The purpose of internal monitoring provides a criteria and guidance for the internal monitoring of resettlement carried out by the Employer, the resettlement offices and the organizations relating to the resettlement to ensure that the implementation of resettlement complies with the Resettlement Action Plan and the resettlement monitoring and evaluation are carried out orderly, normally and efficiently, therefore the relevant organizations may get to know the implementation of the resettlement timely and the problems occurred may be found and eliminated early. The principles of internal monitoring include: to conduct regular survey and evaluation on the implementation of the Resettlement Action Plan, to collect data and analyze information accurately to ensure the accuracy of the results of monitoring, to conduct scientific and objective evaluation on the implementation of the Resettlement Action Plan justly and to submit report to the Employer and the World Bank in time to keep them informed of the progress of the project and able to make scientific decision. The function of internal monitoring: The internal monitoring is an important integral part of the internal management of the project; it directs to mastering the implementation of resettlement; through the establishment and use of resettlement information management system, the progress of the implementation of the resettlement and the data and information of the relevant funds and quality are collected, analyzed and shared and the existing and potential problems and the causes may be found and the measures and suggestions on solving the problems may be proposed. The internal monitoring of the resettlement shall be conducted by the Employer and the resettlement offices and the Employer shall submit the internal monitoring report to the World Bank regularly.

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11.1.2 Procedure of internal monitoring

The internal monitoring can be divided into two phases, namely, preparation phase and implementation phase. The preparation phase begins at project identification period, through project preparation, project pre-assessment and project assessment, finally ends at project approval period of the project cycle. The implementation phase begins at the implementation of the resettlement and ends at the achievement of the aim of resettlement. 1. Preparation phase of internal monitoring The Employer and the local government shall establish the resettlement offices at the early period of project preparation. The Employer shall establish an internal agency for resettlement with capable personnel specialized in resettlement to ensure the provision of complete and objective information and data, which also contributes to the involvement of the organizations of other fields. The internal monitoring and evaluation of the resettlement shall be arranged in the project preparation period. Preparations of the Employer include: ——To organize the trainings on the resettlement policy of the World Bank and relevant experiences, national resettlement policy, the design of the Resettlement Action Plan, resettlement implementation and the monitoring and evaluation of resettlement for the staff of the Employer and the resettlement offices; ——To invite professional agency and professionals who will assist in the design of the Resettlement Action Plan as early as possible; to organize socioeconomic survey; to design the Resettlement Action Plan with the help of the professional agency and professionals; ——To establish resettlement information management system with the help of the professional agency and professionals. Preparations of the resettlement agency include: ——To sign the detailed resettlement implementation contract with the Employer; ——To establish the resettlement offices at various levels and arrange necessary personnel for them. ——To organize resettlement staff trainings; to carry out socioeconomic survey and the design of the Resettlement Action Plan together with the Employer and the professional agency it invited; ——To establish the resettlement information management system. 2. Implementation phase of internal monitoring During the implementation phase, the district resettlement office shall submit the information on resettlement implementation of the sample households and sample

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organizations drawn by the monitoring agency and up-to-date record of relevant activities to the Project Resettlement Office to ensure the follow-up monitoring of the resettlement. The Project Resettlement Office will carry out regular inspection on the resettlement offices at town (street) level and village (community) level and verify the progress of resettlement reported by them. During the implementation phase of the internal monitoring, the Employer shall, ——In accordance with the Resettlement Action Plan, preside over the internal monitoring of the resettlement; ——Submit a detailed internal monitoring report to the World Bank every half a year; ——Update the statistics of the resettlement implementation in time and complete the resettlement information management system.

11.1.3 Contents of internal monitoring

Generally, the internal monitoring shall include the followings: Organization: The establishment and assignment of resettlement-implementing agency and relevant organizations and their personnel assignment and capability development; Resettlement policy and compensation rate: The design and implementation of resettlement policy; the actual implementation of compensation rates of various losses caused by the resettlement (permanent land acquisition, temporary land occupation, house relocation, store relocation, the relocation of public institution and enterprise and the relocation of specific facility) and specific identification of whether the rates in the Resettlement Action Plan is implemented and the causes of any changes occurred; Progress of relocation and resettlement: The general schedule and the yearly schedule, the progress of personnel assignment of the resettlement agency, the progress of land acquisition and temporary occupation, the progress of adjustment, acquisition (or transfer) and assignment of the land of resettlement area (including land for production, residential building and public facility), the progress of house relocation, the progress of the construction of resettlement house, the progress of the moving of displaced persons, the progress of production development project, the progress of the construction of public facility, the progress of the recovery, removal and reconstruction of specific facilities, the progress of the removal and reconstruction of industrial and mineral enterprises and public institutions, the progress of the employment-related action and the progress of other resettlement activities. The sample form of the internal

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monitoring report on the progress of land acquisition and resettlement is shown as Table 11-1; Resettlement budget and implementation: The amount and time of payment of resettlement fund to various levels, the use and management of resettlement fund of resettlement offices at various levels, the amount and time of payment of compensation fund to the proprietor of affected property (house) and the proprietor (village and group) and the user of affected land, the use and management of compensation fund of the collective land at village level, the supervision and audit of the use of fund. The sample form of the internal monitoring report on the progress of the use of compensation fund is shown as Table 11-2; Production and employment resettlement of displaced persons: The main measures for the resettlement of rural displace persons, the number of persons, the employment resettlement of the staff of displaced enterprises, the resettlement of vulnerable groups (household of women, household of old persons and the disabled), the recovery of the land occupied temporarily and the impacts of resettlement; Reconstruction of displaced houses and living resettlement: the means and areas of the resettlement of rural displaced persons, the way of house reconstruction, the three accesses and one leveling of the residential area, the payment of compensation fund, the relocation of the matching public facilities (water supply, power supply, road and business area); The reconstruction of the enterprises and public institutions and various specific facilities (power supply, heat supply, water supply, communication, traffic and pipelines); Complaint, appeal, public involvement, negotiation, information publicity and independent monitoring: The channel, procedure and responsible organization of complaining and appealing, the main complaints and appeals and their handling, main content and means of public involvement and negotiation, the impacts of public involvement and negotiation, resettlement information brochure and information publicity, the activities and impacts of independent monitoring organization; Handling of the relevant issues stated in the inspection memorandum of the World Bank; Existing problems and solutions.

11.1.4 Means of internal monitoring

The internal monitoring, as the from top to bottom monitoring on the implementation of the resettlement within the resettlement system, shall establish

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standard, smooth, from top to bottom resettlement information management system among the Employer and resettlement offices at various levels and follow up the progress of resettlement in various districts. The resettlement offices at various levels shall report the progress of resettlement and the information about the compensation fund and the impacts of resettlement from the bottom to top, analyze and handle relevant issues through the information management system. The Project Resettlement Office has established a complete information management system, which can save and manage various data and information relating to the implementation of project comprehensively, timely and accurately. The following means of internal monitoring may, in accordance with the implementation status of the project, be adopted for this project: 1. Standard report forms The Employer shall, in accordance with the requirements of resettlement implementation, design uniform report forms, which show the progress of appropriation of resettlement fund and the progress of land acquisition and resettlement. The report forms shall be submitted at every end of month from lower level to superior level, through which the Employer can master the progress of the project. 2. Regular and irregular communication The resettlement offices at all levels shall discuss the problems occurred in the resettlement and communicate relevant information and propose their comments on handling these problems by a variety of means. 3. Regular coordination meeting At the beginning of every month, the resettlement division of WMOFFFUCP will convene resettlement coordination meeting and the staff of district resettlement office shall report the progress of the implementation and existing problems, communicate the working experience and seek for the solution of the problems. 4. Inspection The resettlement division of WMOFFFUCP will carry out routine inspection and specific inspection on the resettlement offices of lower levels and field survey, handle resettlement problems on site and verify the progress of the resettlement and the implementation of resettlement policy. 5. Information communication with independent monitoring organization The Employer and the local resettlement offices shall keep in touch with the independent monitoring organization and take their findings and comments as the basis of internal monitoring. 6. Survey

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The Employer will adopt questionnaire and door-to-door interview in the survey to check the implementation of resettlement. Sampling survey shall be applied for households. Some households or collective organizations will be drawn and the questionnaires filled by them will show the payment of their compensation and moving cost, and whether the resettlement is implemented strictly according to the Resettlement Action Plan. And all the enterprises and the public institutions will be investigated. The resettlement division of WMOFFFUCP will carry out the first survey after the displaced persons get their compensation for the first time. After the first survey, the resettlement division of WMOFFFUCP will take some improving measures based on the results of the survey and the complaints of the displaced persons and follow up the implementation of these improving measures. Questionnaire will be adopted for the irregular survey on the labor force resettlement of the displaced persons, the land adjustment and the handling of the complaints and it will also collect the comments and suggestions on the public negotiation and the house selection.

Table 11-1 Land acquisition and resettlement progress Organization:______Date: ______/____/______(Y/M/D) Accumulated Planned Completed Proportion(% Resettlement activity Unit completed amount amount ) amount Permanent land acquisition Mu Temporary land occupation Mu House relocation Including: Private house Store Premise of enterprise and public institution Ten Land compensation thousand yuan Ten Payment of house relocation thousand fee yuan Reconstruction of residential house Reconstruction of store Reconstruction of premise of enterprise and public

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Accumulated Planned Completed Proportion(% Resettlement activity Unit completed amount amount ) amount institution Filled by: Signature of Person in Charge: Seal:

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Table 11-2 Progress of using the compensation fund _____ District_____ Town(Street)______Village(Community) Date /____/___ (Y/ M/ D) Compensation Qty Amount Accumulated Brief acquired in the Proportion( Affected organization (Organizati required acquired description report period %) on) (yuan) Compensation (yuan) Village Village collective (Community)1 Household Village Village collective (Community)2 Household Store Enterprise and public institution Public facility Filled by: Signature of Person in Charge: Seal:

11.1.5 Internal monitoring agency and personnel assignment

The personnel of resettlement agency relating to internal monitoring are shown in Table 11-3.

Table 11-3 Personnel of internal monitoring in resettlement agency

Number of standing Number of personnel in Resettlement agency personnel peak period Resettlement division of 3 5 WMOFFFUCP Resettlement office for Jiefang 7 10 Avenue Resettlement office for Shuidong Section of Second 7 10 Ring Line Resettlementoffice for transport management 3 5 subproject

11.1.6 Cycle of internal monitoring and reporting

The internal monitoring is a continuous process and its overall monitoring activity shall be carried out at least once a quarter and its frequency will be increased during the key period of the relocation of the displaced persons.

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During the preparation period of the project, the internal monitoring agency will make regular and irregular report, combining with the inspection of the World Bank. The format of the report will be determined in accordance with the requirements of the World Bank and different projects and stages. After the implementation begins, it is required to make brief weekly and monthly report and detailed quarterly, half-yearly and yearly report for major projects and make brief quarterly report and detailed half- yearly and yearly report for minor projects. Specific report shall be made according to the requirement of project management. After the implementation of the project, a final report shall be made. The internal monitoring report shall be submitted to the People’s Government at the same level, the resettlement office at superior level and the Employer by the resettlement offices at various levels. And the Employer shall submit an internal monitoring report to the World Bank every half a year.

11.2 Independent Monitoring

In accordance with the relevant requirements of the World Bank, the resettlement division of WMOFFFUCP will choose an experienced organization as Independent Monitoring Organization during the period of implementation. The IMO will monitor and evaluate the resettlement and recovery activities to ensure the resettlement is implemented in conformity to the Resettlement Action Plan.

11.2.1 Purpose of independent monitoring In the independent monitoring and evaluation (M&E), the resettlement evaluation shall be made by the organization independent of the governmental department. Its purpose is to inspect the implementation of the Resettlement Action Plan from a broad and long-term view, to monitor and evaluate whether the aims of land acquisition, resettlement and relocation are reached, to propose comments and suggestions and to take remedial measures and follow up their implementation and impacts to ensure the result of the resettlement. The independent monitoring shall follow up the land acquisition and resettlement to monitor and evaluate the followings: 1. Whether the relevant rules and regulation of the state are observed in the resettlement; 2. Whether relevant policies on involuntary resettlement of the World Bank are observed in the resettlement; 3. Whether the living conditions of the displaced persons is improved or recovered.

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11.2.2 Independent monitoring organization and monitoring personnel The staff of IMO will be qualified with following aspects: (1)The independent monitoring personnel will have the experience of similar work and abundant experience in socioeconomic survey, understand the involuntary resettlement policies of the World Bank, master relevant rules and laws of the state and local government on the resettlement. (2)They shall be industrious and capable of carrying out social survey and research independently and have communication ability. (3)Some female staff shall be assigned according to a certain proportion.

11.2.3 Assignments of the independent monitoring organization

The independent monitoring organization shall undertake the followings: Before the resettlement, the living standard baseline survey shall be carried out to master the basic living and production conditions of the displaced persons. In the process of the resettlement, the independent monitoring organization shall follow up and monitor the implementation of the resettlement, collect the comments and complaints of the displaced persons and report them to the resettlement division of WMOFFFUCP and local resettlement office timely. And the independent monitoring organization shall submit monitoring report to the resettlement division of WMOFFFUCP and the World Bank. The independent monitoring organization shall investigate the living and production conditions of the displaced persons all the time and evaluate the resettlement activities and relevant measures. Upon survey, research and discussion with the displaced persons, the independent monitoring organization shall propose constructive comments to the resettlement division of WMOFFFUCP and local resettlement office to ensure the smooth implementation of the resettlement and fast recovery of the living and production conditions of the displaced persons.

11.2.4 Means and procedures of independent monitoring

The independent monitoring organization will adopt the following means to carry out the monitoring of resettlement. (1)On the basis of resettlement survey, the independent monitoring organization will set up a database for the displaced persons and carry out door-to-door interview constantly. The independent monitoring organization will fully make use of the information acquired through socioeconomic survey and the resettlement information

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management system of the Project Resettlement Office, carry out dynamic management on the basic conditions of the displaced households, get to know the relevant information of the displaced persons all the time. According to the information shown in the database, the monitoring personnel will visit the displaced persons, get to know the progress of the resettlement, collect their complaints and suggestions, and inform them relevant policies of the state, relevant requirements of the World Bank and the information on the construction of the project. After the acquisition of the name list of the displaced persons and relevant information from basic institution, the independent monitoring organization shall carry out door-to-door interview independently, not accompanied by the staff of the local resettlement office or local administrative personnel. The visiting persons shall be relatively stable, which means a monitoring member shall try to visit the same affected area from time to time, which is beneficial for the establishment of the trust between the monitoring member and the displaced persons and the efficiency of the visits. (2)The independent monitoring organization shall convene meetings irregularly in the area with a large population to collect the comments on the importation issues relating to the project of the displaced persons. The meeting may be formal or informal. And the staff of the local resettlement office may be or may not be invited to the meeting, which depends on the actual situation. (3)Field survey. The staff of the independent monitoring organization shall visit the resettlement area regularly and irregularly and observe the resettlement on site. (4)Survey on individual case. The monitoring personnel shall put emphasis on the special case occurred in the resettlement, analyze the causes of the problems, work out solutions and propose suggestions. (5)Questionnaire. The monitoring staff shall carry out sampling survey on the recovery of the living and production conditions of the displaced persons and the comments on the resettlement and analyze the result in time to solve the existing problems. And the resettlement work of the next year may be carried out with reference to the results of the survey and the solutions of the problems occurred.

11.2.5 Contents of independent monitoring

(1) Resettlement monitoring of the affected enterprises and public institutions The independent monitoring organization shall follow up the resettlement of the enterprises and public institutions through phone call and the study on individual case. The followings will be most concerned about: Whether the time of land acquisition and the resettlement is arranged reasonably;

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Whether the losses of the affected enterprises are compensated; Whether the staff of the enterprises are resettled properly; Whether the production of the enterprises is resumed in time; Whether the affected enterprise transfer their loss to their staff. (2)The resettlement of displaced persons Many urban and rural residential houses are involved in this project. The resettlement of displaced persons is the emphasis of the independent monitoring. As to these displaced persons, the followings are the main concerns of the independent monitoring organization. Whether the compensation rates of houses and other attachments to the ground are determined in accordance with the replacement cost principle; Whether the compensation is paid with full amount and in time; Whether the land of new residential houses is determined through negotiation; Whether the time of relocation is arranged reasonably; Whether the transition allowances and moving cost are paid; Whether the physical losses are fully compensated; Whether the infrastructure (including water, power and heat supply and roads) of the new resettlement area is completed and who is responsible for it; Whether it is convenient to go to hospital and school from the new resettlement area. (3)The production resettlement of the displaced persons In accordance with the features and the operation of the affected land, the independent monitoring on the land acquisition and production resettlement shall be focused on the followings: Whether the compensation rates of various lands are determined in accordance with relevant laws of the state; Whether the transfer procedure of land compensation fund can ensure the affected village and team acquire their deserved amount; Whether the amount of land requisitioned, compensation rate, compensation amount are publicized in the village and by which means they are publicized; If the land compensation shall be paid to individuals directly, how the range of payment is determined; If the readjustment of land is required, how the plan of readjustment is determined and whether it is determined upon the discussion and negotiation with the displaced persons;

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Whether a definite and feasible plan is made for the collective use of land compensation; Whether the plan of the use of land compensation is designed after the collection of the comments of related villagers and how the use plan is finally determined; How the benefit brought by land compensation is distributed and how the actual economic benefit of the displaced persons is guaranteed; The implementation and impacts of land reclamation plan. (4)Resettlement offices Capable, specialized and efficient resettlement offices may assure the success of resettlement. The monitoring on the operation of resettlement offices is an important part of independent monitoring. The means of monitoring are mainly visits to the resettlement offices and the inspection on the working data and record. The main content of monitoring on resettlement offices includes: Whether the personnel structure of the resettlement offices at various levels meets the requirements of the resettlement; Whether necessary working conditions are provided for the resettlement offices at various levels; Whether the quality of resettlement personnel meets the requirements of the resettlement; The resettlement staff training; The internal data and information management of the resettlement offices. (5)The resettlement of vulnerable groups The vulnerable groups shall be given special attention not only by the resettlement offices but also by the independent monitoring organization. The independent monitoring organization shall follow up and monitor the resettlement of vulnerable groups by means of door-to-door interview, questionnaire, individual case analysis and the main indicators of monitoring include: Which preferential policies are enjoyed by vulnerable groups in the resettlement; Whether the affected poor household in the urban area can afford a new house; Whether any assistance has been offered to the affected poor household in the rural area; The measures for the production resettlement of affected poor households in rural area; Whether special requirements of affected women have been fully considered in the design of resettlement measures;

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Whether vulnerable groups, especially women, can acquire employment opportunity relating to the project and how many vulnerable persons are employed in the construction of the project; Whether there is a female staff member in each resettlement office to deal with the affairs of women. (6)The living standard baseline survey of displaced persons Before the formal commencement of the resettlement, the independent monitoring organization shall collect the basic information for the resettlement of the World Bank Financed Wuhan Urban Transport Project upon sampling survey. Structured questionnaires are adopted for the sampling survey. Cluster sampling shall be carried out, taking all the affected households involved in the socioeconomic survey at the preparation phase of the project as the sample bank. The sampling proportion for living standard baseline survey is determined to be 10% -20%. The living standard baseline survey of the affected households covers: family structure, production conditions, gross floor area of the houses, annual income of the household, employment structure, annual expenditure of the household, traffic conditions, water supply, power supply and heat supply conditions, living environment, subjective appraisal of production and living conditions. (7)The impacts of resettlement After the implementation of the resettlement, the independent monitoring organization will follow up and monitor the impacts of the resettlement continuously. The independent monitoring organization will investigate the affected households half a year after the resettlement. The follow-up survey is similar to the living standard baseline survey of the affected households, adopting sampling survey by means of structured questionnaires, to show the impact of resettlement on the production and living of the persons investigated. And the impacts of resettlement shall be evaluated on the basis of the follow-up survey. The principle of the selection of samples of the follow-up survey is the same as that of living standard baseline survey. The independent monitoring organization shall try to investigate the objects of living standard baseline survey. After the living standard baseline survey, the independent monitoring personnel shall establish the database of the samples of the survey, which will be the basis of the follow-up survey. As to the survey objects that it is hard to investigate again due to various reasons, they shall be replaced by similar affected households in the same community after referring to the information bank established upon the earlier socioeconomic survey.

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The contents of the follow-up survey shall be consistent with those of living standard baseline survey, so as to carry out comparison analysis of the production and living conditions of the affected households before and after the resettlement. Meanwhile, the subjective comments on the resettlement of the displaced persons shall be collected and they will be referred to in the evaluation of the impacts of the resettlement.

11.2.6 Reporting system for independent monitoring

The independent monitoring organization shall make independent monitoring report in written form based on the information acquired through observation and survey. The two purposes of reporting: one is to report the progress of the resettlement and existing problems objectively to the World Bank and the Employer and the other is to evaluate the social and economic impacts of the resettlement, propose constructive comments and suggestions to improve and perfect the resettlement. The independent monitoring organization shall submit reports to the World Bank and the Employer and the periods of reporting are confirmed as follows: Submit an interim monitoring report concerning the resettlement of the first half of the year to the World Bank and the Employer before July 31 of every year; Submit a yearly monitoring report to the World Bank and the Employer before Jan. 31 of every year; Submit a comprehensive evaluation report half a year after the completion of the resettlement. A routine monitoring report shall at least include the followings: 1. monitoring objects of the report; 2. the progress of the resettlement; 3. main findings of the independent monitoring organization; 4. main existing problems; 5. basic appraisal, comments and suggestions of independent monitoring organization. The independent monitoring organization shall submit the report both in English and in Chinese to the Project Office and the World Bank. Before submitting, the independent monitoring organization shall inform relevant personnel of the resettlement office of the contents of the report and collect their comments and they shall communicate with each other on the contents and the form of the report.

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12. Entitlement Matrix

Affected Item persons or Resettlement and rehabilitation policies Compensation rate organizations The requisitioned land shall be compensated at different compensation rates for different For the acquisition of vegetable land categories. land, fish pond and lotus pond on As to the acquisition of collectively-owned cultivated land, young crops compensation collectively-owned land, the compensation for young crops and the compensation for attachments to the ground shall be due to the land proprietor. and the attachments to ground Land compensation fund for the acquisition of collectively-owned land shall be directly Villagers’ will be directly paid to the land appropriated by the Urban Construction Fund Office of The People’s Government of Land committees proprietor. acquisition Wuhan City to the account of the village via special fund account. 162,500 Yuan/mu for The use of land compensation fund due to the village shall be supervised and audited by vegetable land, fish pond and the superior unit, and the use approaches shall be determined upon negotiation in the lotus pond; 97,500 Yuan/mu meeting of villagers, and the fund shall be mainly used for collective public welfare for pond and forest land; undertakings. 39,000 Yuan/mu for housing Land The affected contractors shall obtain the compensation for young crops and various site and waste land. operators attachments to the ground on the land requisitioned.

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For Shuidong Section of Second Ring Line, compensation price: 661,000 Yuan/mu; For the The expropriation of state-owned land for the project will be carried out according to the acquisition of state-owned land Land for the downward extension line User of state- policy specified by Wuhan Municipal Bureau of Land Resources and Housing expropriatio of Jiefang Avenue, owned land Management. Compensation rate: benchmark land price for the location of the n 380,9 911,800 Yuan/mu; for requisitioned land minus land transfer fee for this location. Gangduhuayuan initial and terminal station, 498,900 Yuan/mu.

For the relocation household on state-owned land, both resettlement modes of monetary resettlement and exchange of property right are provided for free selection. For the compensation for Amount of monetary compensation for private house = Property building area of house to be dwelling house to be relocated ×(Location price + House replacement price) relocated in Shuidong As for monetary compensation for public-property house (public-property house directly under Section of Second Ring Line, Relocation Residents of the jurisdiction of the city and that under the self-management of the unit), 20% shall be paid to the location price: 3015 Yuan/ , of urban relocated displaced person (property owner), and 80% to the leaseholder (user). The house to be relocated shall be evaluated by qualified real estate evaluation company as per replacement price: 830 residents’ urban the location, purpose, building area and other factors of the house. Yuan/ for framework houses communities The compensation principle for business and non-business houses to be relocated on state-owned structure, 570 Yuan/ for land is the same as that for dwelling house to be relocated, and the compensation rate shall be in brick-concrete structure, 420 conformity with the evaluation price of real estate evaluation company. Yuan/ for brick-wood For the house to be relocated, moving and transition allowance will be provided. For monetary compensation, two-month transition allowance will be granted, and for physical resettlement, actual structure, and 340 Yuan/ transition period will be adopted for allowance calculation. for simple structure.

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For the compensation for dwelling house to be relocated in the downward extension line of Jiefang Avenue, location price: 3325- 3592 Yuan/ , replacement Moving allowance and facility compensation will be provided. price: 830 Yuan/ for Leaseholders The leaseholder shall have the priority to lease the premise under the same conditions. framework structure, 570 Yuan/ for brick-concrete structure, 420 Yuan/ for brick-wood structure, and 340 Yuan/ for simple structure.

Location price for housing site in Shuidong Section of Second Ring Line: 2280 Yuan/ . Location price for the first-class area in the For the relocation household on collectively-owned land, both resettlement modes of downward extension line of Relocation monetary resettlement and exchange of property right are provided for free selection. Jiefang Avenue: 2280 of houses Amount of monetary compensation = Property building area of house to be relocated Yuan/ ; for the second-calss on Displaced ×Unit price of market evaluation (Yuan/ ) area: 1920 Yuan/ . collectively rural residents Except for the villagers selecting monetary resettlement, unified planning and Replacement price: 830 -owned construction of resettlement will be carried out in combination with the transformation of Yuan/ for framework land villages in city. structure, 570 Yuan/ for brick-concrete structure, 420 Yuan/ for brick-wood structure, and 340 Yuan/ for simple structure.

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The family of vulnerable group shall be given priority to purchase economically affordable house, and the resettlement house shall be guaranteed. For the family of vulnerable group selecting monetary compensation, if the area of the house to be relocated is less than 30 , compensation will be provided at 30 . The family of vulnerable group willing to select low-rent houses will be included in the annual low- rent house plan by the community. For area, structure and location of economically affordable house, the family of vulnerable group has Vulnerable Vulnerable priority in selection. groups Resettlement organizations at all levels are responsible for organization manpower to families assist in the moving of the families of vulnerable groups. For the relocated families covered within the lowest living standard security system for urban residents, the sum of 20000 Yuan is paid to each household as living subsidies; for the relocated families with disabled member(s), the sum of 20000 Yuan is paid to each household as living subsidies; in case the relocated family falls into the aforesaid two situations at the same time, the sum which is paid as living subsidy will be doubled, viz. 40000 Yuan/family. The compensation rate for enterprises and institution is composed of location price and house Location price: 3918 Yuan/ Relocation replacement price. The replacement price of building with the structure similar to dwelling house will be for Shuidong Section of of Enterprises the same. Second Ring Line, and 5893/ For the productive buildings and equipment, following compensation will be given: enterprises and 9709/11386 Yuan/ for the relocation and installment fee of the equipment. and institutions Dijiao Section, Vehicle institutions the equipment that can not be rehabilitated will be compensated with the depreciated value. the lost of surplus will be calculated by six months’ salary lost of the registered staff. Factory Section and Huangpu Avenue Section along the

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The compensation for licensed shop shall be provided as per the compensation arte for Avenue Section along the business building. For unlicensed shop, besides the compensation at the rate for dwelling downward extension line of house, the compensation at 600 Yuan/ will be provided according to the area of business Jiefang Avenue: building. Replacement price: 830 As to the newly built stores and houses for business purpose of various enterprises and Yuan/ for framework Property institutions closely behind the sites of the displaced stores, the leaseholders shall have the structure, 570 Yuan/ for Relocation owners and priority to lease the houses under the same conditions. brick-concrete structure, 420 of shops leaseholders The moving allowance, transition allowance, and the compensation for decoration Yuan/ for brick-wood confirmed upon assessment of the stores shall be given to the leaseholder. The structure, and 340 Yuan/ compensation for structures shall be paid to the property owner. for simple structure. As to the business loss of enterprises and institutions due to the relocation of their stores, the compensation shall be determined upon the negotiation between the resettlement office and the affected enterprises and institutions. 570 Yuan/ for brick- For unlicensed house, the compensation will be provided as per replacement cost, but no location concrete structure, 420 Unlicensed Building users compensation will be provided. Yuan/ for brick-wood building structure, and 340 Yuan/ for simple structure. Attachment Property s to the Provide compensation at replacement price. owners ground

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Attachment 1

Resettlement Information Booklet for the World Bank Financed Wuhan Urban Transport Project

Respected , The World Bank Financed Wuhan Urban Transport Project (Phase II) will cover the place your family/working unit is located in, and this booklet is hereby issued in order to let you understand the general situation of the project, relevant land relocation policy of the country and affected family/working unit. I. General situation of the project The World Bank financed Wuhan Urban Transport Project mainly includes four subprojects: (1) public transport priority corridor improvement subproject; (2) road and safety subproject; (3) transport demand management subproject: (4) road network improvement subproject; and (5) technical assistance subproject.. The project is proposed to be commenced in the second half of 2009 according to the preliminary plan, and the construction period will be 5 years. II. Laws and regulations and compensation rates in regard to land acquisition (1) Major laws and regulations The Law of Land Administration of the People’s Republic of China Regulation on the Implementation of the Land Administration Law of the People's Republic of China Law of the People's Republic of China on Urban Real Estate Administration Implementation Measures of Land Administration of Hubei Province Regulations on Urban House Relocation of Hubei Province Measures of Administration of Urban House Relocation of Wuhan City The Operational Policy of the World Bank for involuntary resettlement OP/BP4.12 (2) Compensation policies on land acquisition and relocation for this project

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Category Compensation rate I. Land acquisition compensation fees II. House III. Attachment to the ground IV. Professional Provide compensation as per the replacement price or negotiated price of infrastructures facilities This compensation rates is formulated on the basis of survey and investigation and in accordance with the laws and regulations of China as well as the operational policy of involuntary resettlement by the World Bank, in order to restore and improve the standards of living of affected population after resettlement as soon as possible. III. Affected family/work unit Compensation Compensation Item Quantity Remark rates payable 1 2 3 4 Total IV. Predicted implementation time Item Time Land acquisition and relocation announcement Capital payment Land acquisition and relocation Moving into new houses Preparation for the project Project construction V. Rights and obligations of affected population (1) Rights of displaced persons They should obtain compensations completely according to the above compensation rates and may reflect their ideas and suggestions to the resettlement offices of village committees/communities, towns/streets, districts and the city. Detailed contents are: Base compensation, compensation rates, time for paying

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compensation, location for building reconstruction, and so on. Each resettlement office must give its response within 15 days after receiving the complaints of displaced persons or those reported by lower level of resettlement office. (2) Obligations of affected population They should actively cooperate with project construction. New buildings should not be set up within the range of survey after it is conducted, or there will be no compensation. They should demolish the buildings within the range of land for transportation. VI. Assistance to vulnerable households Vulnerable households will be given the following assistance: Financial assistance. In the process of relocation, villages/communities should offer some subsidiaries to them. Assistance in labor service. Villages/communities give assistance to labor force responsible for relocation. Vulnerable households should have priority to select locations for building reconstruction and reallocated farmland. VII. Land acquisition and relocation agencies Municipal agency Resettlement division of Wuhan Management Office for Foreign Fund Financed Urban Construction Project Address: 40, Changqing Road, Hankou, Wuhan Postcode: Tel.: 027 65653537 Resettlement branch Resettlement office for Jiefang Avenue subproject Address: 40, Changqing Road, Hankou District, Wuhan City Tel: 027-65653537 Resettlement office for Shuidong Section of Second Ring Line subproject Address: 40, Changqing Road, Hankou District, Wuhan City Tel: 027-65653537 Independent monitoring organization: Center for Involuntary Resettlement Research, Wuhan University Address: Economics and Management School of Wuhan University Postcode: 430072

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Tel.: 027-68752611

VIII. Right to interpret the booklet The right to interpret the booklet belongs to the Wuhan Management Office for Foreign Fund Financed Urban Construction Project. Thank you for your support to this Project!

Wuhan Management Office for Foreign Fund Financed Urban Construction Project December 2009

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