Resettlement Plan

December 2014

PRC: Flood Management Sector Project

Resettlement Plan and Due Diligence Report for City (Non-Core Subproject)

Prepared by Hunan Hydro and Power Design Institute for the Hunan Provincial Project Management Office (PMO) of Urban Flood Control Project in Hilly Region Utilizing ADB Loans, Xiangtan City PMO of Urban Flood Control Project Utilizing ADB Loans, and the Asian Development Bank.

GSDS Certificate Grade A No.180105-sj GSDK Certificate Grade A No.180105-kj GZ Certificate Grade A No. 1032523001 SBZ Certificate Grade A No. 027

Hunan Province Xiangtan City

Urban Flood Control Project Utilizing ADB Loans

Resettlement Plan and Due Diligence Report (Final version)

Hunan Provincial PMO of Urban Flood Control Project in Hilly Region Utilizing ADB Loans Xiangtan City PMO of Urban Flood Control Project Utilizing ADB Loans Hunan Hydro and Power Design Institute December, 2014

i

Approved by : Xiao Wenhui

Ratified by: Zhang Kejian

Examined by: Xie Dahu

Checked by: Tan Lu

Compiled by: Liu Hongyan

Main Designers: Ouyang Xiongbiao Guan Yaohui Zhao Gengqiang Tan Lu Liu Hongyan Teng Yan Zhou Kai Jin Hongli Huang Bichen

ii Contents

Updated Info……………………………………………………………………………………………………………i Objectives of Resettlement Plan & Definition of Resettlement Vocabulary……………………………….1 Executive Summary ...... 3 A. STATUS OF RESETTLEMENT PLAN ...... 3 B. Scope of Land Acquisition and Resettlement ...... 3 C. Policy Framework and Entitlements ...... 3 E. INSTITUTIONAL ARRANGEMENTS ...... 5 F. VULNERABLE GROUP ...... 5 G. Consultation and Grievance Redress ...... 5 H. MONITORING AND REPORTING ...... 6 I. FINANCE AND IMPLEMENTATION SCHEDULE ...... 6 1. General Description of Project...... 7 1.1 PROJECT BACKGROUND ...... 7 1.2 GENERAL SITUATION OF PROJECT ...... 8 1.2.1 Areal Geography Location ...... 8 1.2.2 Contents and Scale of Project Construction ...... 8 1.3 AFFECTED SCOPE OF PROJECT ...... 9 1.4 COMPILATION OF RESETTLEMENT PLAN ...... 9 1.4.1 Basis and Objective for Report Compilation ...... 9 1.4.2 Method of Report Compilation ...... 10 2. Project Impacts ...... 11 2.1 MEASURES FOR AVOIDING OR REDUCING TO THE MINIMUM THE LAND ACQUISITION AND RELOCATION IMPACTS ...... 11 2.1.1 Measures for Reducing the Land Acquisition Impacts in Project Design Phase ...... 11 2.1.2 Measures for Reducing the Impact due to Land Acquisition in Project Construction ...... 12 2.2 INVESTIGATION ON PROJECT IMPACTS ...... 13 2.2.1 Investigation Contents ...... 13 2.2.2 Investigation Method ...... 13 2.3 INVESTIGATION RESULTS ON PROJECT IMPACTS ...... 14 2.3.1 Land Affected by Project ...... 16 2.3.2 Affected Population Due to Project...... 19 2.3.3 Houses and Auxiliary Facilities to be Demolished ...... 22 2.3.4 Affected Enterprises and Institutions ...... 24 2.3.5 Affected Special Facilities by the Project ...... 24 2.3.6 Affected Cultural Relics and Vulnerable Groups Due to Project ...... 26 2.4 IMPACT ANALYSIS OF PROJECT ...... 26 2.4.1 Project Impact Characteristics ...... 26 2.4.2 Impact Analysis Evaluation ...... 26

i 3. Natural and Socio-Economic Conditions of the Project-Affected Areas ...... 28 3.1 NATURAL CONDITIONS OF THE PROJECT-AFFECTED AREAS ...... 28 3.2 SOCIO-ECONOMIC CONDITIONS IN THE AFFECTED AREAS OF PROJECT ...... 29 3.2.1 Socio-Economic Conditions in the Affected Area ...... 29 3.2.2 Socio-Economic Conditions in the Affected Area ...... 30 3.2.3 SOCIO-ECONOMIC CONDITIONS OF TOWNSHIPS (SUB-DISTRICTS) AND VILLAGES IN THE AFFECTED AREAS OF THE PROJECT ...... 31 3.3 BASIC CONDITIONS OF RELOCATEES ...... 35 3.3.1 Investigation Objectives ...... 35 3.3.2 Investigation Content ...... 35 3.3.3 Investigation Method and Procedure ...... 35 3.3.4 Investigation Results and Analysis...... 36 3.4 SOCIAL AND ECONOMIC EFFECTS FOR RESETTLEMENT TO THE AFFECTED POPULATION ...... 40 4. Legal Framework and Policy ...... 42 4.1MAIN CHINESE LAWS & REGULATIONS AND POLICIES FOR RESETTLEMENT ...... 42 4.1.1 Policy Bases ...... 42 4.1.2 Relevant Laws and Regulations ...... 43 4.2 RELEVANT ARTICLES OF THE ADB ...... 51 4.2.1 Policy Bases ...... 51 4.2.2 Relevant Policies and Regulations ...... 51 4.3 COMPENSATION STANDARDS FOR PROJECT ...... 52 4.3.1 Compensation Qualification ...... 52 4.3.2 Principles of Compensation Rehabilitation ...... 52 4.3.3 Compensation Reference and Standard for Land Acquisition ...... 54 1) Compensation Standards for Cultivated Land Acquisition ...... 54 4.3.4 Relocation Compensation Reference and Standards for Residential House and Auxiliaries ...... 57 4.3.5 Compensation Reference and Standard of Affected Enterprises and Institution ...... 61 4.3.6 Compensation Reference and Standard of Special Facilities Affected by the Project ...... 62 4.4 TABLE OF ENTITLEMENT MATRIX ...... 73 5. Resettlement and Rehabilitation Measures ...... 79 5.1 RESETTLEMENT AND REHABILITATION OBJECTIVES ...... 79 5.1.1 General Objectives ...... 79 5.1.2 Resettlement Tasks ...... 79 1) Economic Rehabilitation Populations ...... 79 2) Resettlement Population of House Demolition and Relocation ...... 79 5.1.3 Affected Population Due to the Temporary Land Acquisition ...... 81 5.2 GENERAL SCHEME OF REHABILITATION ...... 81 5.3 HOUSE RELOCATION ...... 82 5.3.1 Relocation Arrangement ...... 82

ii 5.3.2 Principle and Procedure for Selecting Resettlement Sites ...... 82 5.3.3 Planning of Demolition and Housing ...... 82 5.3.4 Infrastructure and Public Facilities ...... 83 5.3.5 Assistance in Resettlement ...... 83 5.4 REHABILITATION PLANNING FOR RESETTLERS ...... 84 5.4.1 ENVIRONMENTAL CAPACITY ANALYSIS ...... 84 5.4.2 Standards of Production Resettlement ...... 84 5.4.3 Economic Rehabilitation Planning ...... 85 5.4.4 Investment of Economic Rehabilitation ...... 87 5.4.5 Balance between Resettlement Budget and Production Investment ...... 88 5.4.6 Rehabilitation Measures for Resettlers’ Economic Income ...... 89 5.5 ECONOMIC REHABILITATION PLANNING FOR KEY RESETTLEMENT VILLAGES ...... 89 5.7 PLANNING OF RELOCATION AND RECONSTRUCTION SPECIAL FACILITIES ...... 92 5.7.1 Traffic Facilities ...... 92 5.7.2 Transformer Facilities ...... 92 5.7.3 Water Resources Facilities ...... 92 5.7.4 Post Facilities ...... 92 5.8 ASSISTANCE TO AFFECTED WOMEN ...... 92 5.9 VULNERABLE GROUPS RESETTLEMENT AND REHABILITATION ...... 93 5.10 SOCIAL SECURITY SYSTEM FOR LAND-LOST FARMERS ...... 93 6. Institution and Responsibilities ...... 94 6.1 RESETTLEMENT ENGAGING IN THE RESETTLEMENT PLANNING ...... 94 6.2 INSTITUTIONS AND RESPONSIBILITIES OF RESETTLEMENT IMPLEMENTATION MANAGEMENT ...... 94 6.2.1 Institutions ...... 94 6.2.2 Responsibilities ...... 94 6.3 SUPERVISION INSTITUTIONS ...... 97 6.4 RESETTLEMENT MANAGEMENT SYSTEM ...... 98 6.5 PERSONNEL AND FACILITIES OF RESETTLEMENT INSTITUTION ...... 98 6.5.1 Personnel Arrangement ...... 98 6.5.2 Facilities ...... 98 6.6 TRAINING PLAN ...... 99 6.6.1Resettlement Administrator Training Plan ...... 99 6.6.2 Production Skills Training for Resettlers ...... 100 6.6.3 Investment on Resettlement Training and Planning ...... 100 6.7 MEASURES FOR INSTITUTION CONSUMMATING ...... 100 7. Public Participation and Harmonization with Residents in Resettlement Area ...... 103 7.1 PUBLIC PARTICIPATION STRATEGIES ...... 103 7.2 APPROACHES AND MEASURES OF PUBLIC PARTICIPATION ...... 103 7.2.1 Participation Approaches ...... 103

iii 7.2.2 Participation and Consultation Measures ...... 103 7.3 PUBLIC PARTICIPATION IN THE COMPILATION OF RESETTLEMENT PLANNING REPORT ...... 103 7.4 PUBLIC PARTICIPATION AND PLAN IN IMPLEMENTATION OF RESETTLEMENT PLAN ...... 106 7.4.1 Participation in the Houses Rebuilding and Resettlement ...... 106 7.4.2 Participation in Production Resettlement ...... 107 7.4.3 Participation in the Usage and Management of Land Compensation Fee ...... 107 7.4.4 Participation in Project Construction ...... 107 7.5 WOMEN PARTICIPATION ...... 107 7.6 HARMONIZATION WITH THE RESIDENTS IN RESETTLEMENT AREA ...... 107 8. Appeal Procedure ...... 109 8.1 POSSIBLE COMPLAINT AND PROBLEMS SOLVING METHODS ...... 109 9. Environment Protection and Management ...... 112 9.1 THE NECESSITY OF ENVIRONMENT PROTECTION ...... 112 9.2 LIQUIDATION OF RELOCATION ...... 112 9.3 THE ENVIRONMENT MANAGEMENT OF THE RESETTLEMENT AREA ...... 112 10. Monitoring and Evaluation ...... 113 10.1 INTERNAL MONITORING ...... 113 10.1.1 Internal Monitoring Agency Organization ...... 113 10.1.2 The Objective of Internal Monitoring ...... 113 10.1.3 The Content of Internal Monitoring ...... 113 10.1.4 The Responsibilities of Internal Monitoring ...... 113 10.2 EXTERNAL MONITORING ...... 113 10.2.1 Independent Monitoring & Evaluation Agency ...... 113 10.2.2 The Objective of Independent Monitoring & Evaluation ...... 114 10.2.3 The Contents of Independent Monitoring & Evaluation ...... 114 10.2.4 The Methods of Independent Monitoring& Evaluation ...... 114 10.2.5 The Procedure of Independent Monitoring & Evaluation ...... 116 10.2.6 The Period, Frequency and Standard of Monitoring & Evaluation ...... 116 10.3 THE EVALUATION OF RESETTLEMENT ...... 116 11. Resettlement Budget ...... 118 11.1 COMPILATION REFERENCE AND PRINCIPLE ...... 118 11.1.1 Main References ...... 118 11.1.2 Compilation Principle ...... 118 11.2 RESETTLEMENT COMPENSATION FEE ...... 118 11.2.1 Land Compensation ...... 118 11.2.2 Compensation for Houses and Auxiliary Facilities ...... 119 11.2.3 Compensation for Infrastructures ...... 119 11.2.4 Relocation Transportation Fee ...... 119 11.2.5 Compensation for Enterprises and Institutions ...... 119 11.2.6 Subsidies for Vulnerable Group ...... 119

iv 11.2.7 Resettlement Compensation Investment ...... 119 11.3 COMPENSATION FOR SPECIAL FACILITIES ...... 124 11.4 OTHER COSTS ...... 125 11.5 BASIC CONTINGENCY FEE ...... 125 11.6 RELEVANT TAX ...... 126 11.7 TOTAL BUDGET ...... 127 11.8 FUND FLOW...... 128 11.9 FUND APPROPRIATION ...... 131 11.9.1 Appropriation Principle ...... 131 11.9.2 The Organ in Charge of Resettlement Finance ...... 131 11.9.3 Annual Fund Use Plan ...... 131 12. Resettlement Progress Arrangement ...... 133 12.1 PRINCIPLES OF RESETTLEMENT PROGRESS ARRANGEMENT ...... 133 12.2 PROGRESS PLAN ...... 133 12.2.1 Project Implementation Schedule ...... 133 12.2.2 Resettlement Implementation Schedule ...... 133 Appendix 1: Resettlement Information Booklet ...... 136 Appendix 2:Xiangtan Subproject Due Diligence Review Report (Revision) ...... 145

v Updated Info In TA phase of this Project, Resettlement Plan of Urban Flood Control Project for Xiangtan City (hereinafter as Original Plan was compiled based on the Feasibility Study Report of the Project according to requirements of ADB’s Security Policy. From May,2006 to June, 2006, a joint investigation team made up of Hunan Hydro & Power Design Institute, Xiangtan Water Resources Bureau and local governments carried out comprehensive investigation on Project impacts. In Dec. 2013, with the supports from project-affected county governments, town governments, villages, resettlers and design units, Xiangtan Water Resources Bureau completed recheck on project impacts, as well investigation and study on the Project compensation policies and standards, and resettlement scheme, etc. In Jan. 2014, Hunan Hydro & Power Design Institute updated the original plan according to detailed design and resettlement implementation of the Project. This updates includes resettler’s quantity, compensation and resettlement policies, socioeconomic status, resettlement budgets, resettlement plan, etc., which involves all sections of original plans. Details refer to Table A. Table A Updates of the Project Resettlement Plan

No. Updated Contents Orignal Plan Updated Plan Remark

Scope of land Acquisition of various lands for Acquisition of various lands 1 acquisition and 499.8mu for 376.2mu impacts

Affecting 594 persons in 167 Affecting 472 persons in 131 2 Affected Resettlers households households

Dry land 19,680 Yuan/mu, Dry land 15,342 Yuan/mu, flood flood land 13,440 Yuan/mu, 3 Land Acquisition land 9,640 Yuan/mu, industrial industrial land 55,760 land 17,340 Yuan/mu Yuan/mu

4 Funding Budget 36.7515 million Yuan 33.6142 million Yuan

Implementation 5 Schedule of 2006 to 2009 2007 to 2010 Resettlement

i Objectives of Resettlement Plan & Definition of Resettlement Vocabulary

This resettlement plan (RP) is developed according to the policies and stipulations of Asian Development Bank as well as the relevant laws and regulations of Hunan Province and People’s Republic of . This document is aimed to provide an action plan for the resettlement and rehabilitation of people (affected peoples) affected due to the project, to ensure that they will be benefited from this project, and their living standard will be improved or at least restored after project completion. The resettlement plan is a legal restraint document between the executive agency (Project Management Office) - Key Project Management Office under Hunan Province Water Resources Department, and ADB, as well as local project implementation agencies. With this, the Key Project Management Office under Hunan Province Water Resources Department shall be fully responsible to ensure sufficient funds available for the action plan, and right implementation by relevant city governments. The Resettlement Plan compiled by Hunan Province Hydro and Power Design Institute will be formally approved by the Hunan Province Water Resources Department representing the Hunan Province People’ s Government.

In the development project, the land acquisition and resettlement bring about the unfavorable influence in the life of people who scrape a living or working on these lands. “Project-affected people” refers to those persons whose production or life is unfavorably affected due to the land acquisition and relocation in project, including:

1) Persons whose lands (including housing plots, lands for public Facilities, farmlands, forest land, land for animal husbandry, fisheries and sideline activities), structures (private houses and attachments, enterprise structures, or public buildings, etc.), rights and interests or other properties are partly or wholly, temporarily or permanently requisitioned; 2) Persons using the above-mentioned lands, structures or properties; or the people whose businesses, work, residential area or living custom is unfavorably affected. 3) Persons whose living standard is unfavorably affected due to the land acquisition and relocation.

Definition of “Project-affected peoples”: The said “Project-affected peoples” refers to group which is affected, for the implementation of project, in the following fields: a)The living standard is affected or would-be-affected unfavorably; or b)The ownership of any house, rights or interest, land (include housing plot, cultivated land and pasture) or other movable estates or real estates are temporarily or almost permanently taken over or occupied; or c)The people whose business operation, occupation, work or living or accustom is unfavorably affected. “Project-affected peoples” can be individuals, or legal representatives such as enterprises or public institutions. The definition of “Project-affected peoples” shall not bring any limitation on the legal registration, permission to live or ongoing business in the affected area, or bring any limitation to the compensation on its properties. Therefore, it includes: 1) All the affected peoples who shall not be subject to their legal rights or their presence in acquiring their properties. 2) Persons who live in the given areas, but have no habitation permission. Therefore, all these affected peoples, taking no account of their properties, lands or location, are considered and recorded as the affected peoples. All the affected peoples due to the project shall be compensated to improve or at least recover their living standard. In addition, their lost assets shall be compensated according to the replacement cost, no discounting or reduction on the compensation sum is allowed under the cover of depreciation or other excuses. All the affected peoples shall have their rights and interests for the impact they undergo. Moreover, for rehabilitation, assistance shall be offered in addition to the compensation for property loss. Among the project-affected peoples, those who run business, develop new farmland or build in project area without formal legal titles, asset ownership, or legal permission to live, shall be treated same as the persons who have the formal legal assets, rights and interests, or permissions, to be helped to restore their livelihood and get compensated for the lost properties.

1 Definition of “Resettlement” mainly comprises: 1) Relocate the living arena; 2) Find a new job for the person whose job is affected; 3) Restore or rehabilitate (or compensate) the affected lands, workplaces, woods, and infrastructures, etc.; 4) Restore the living standard (quantity of life) for the persons who are unfavorably affected due to the land acquisition, indirect resettlement, or other projects; 5) Restore or compensate for the affected peoples or government enterprise; 6) Restore the damages caused by unfavorably impact on culture or common properties.

Definition of “Rehabilitation”: “Rehabilitation” means restoring the ability of carrying on the production activities for the project-affected peoples, or elevates their living standards or at least keep their living standards at the levels before project launching.

This “Resettlement Action Plan” is aimed to provide a resettlement and rehabilitation plan for the project-affected peoples so that their losses will be compensated; their living standards will be improved or at least restored to their present conditions. The affected business and manufacturing resources, enterprises (include shops), and public Facilities and infrastructures shall also be improved or at least recover to the level before launching project.

2 Executive Summary

A. Status of Resettlement Plan 1. The proposed Hunan Province Xiangtan City Urban Flood Control Project finances following items: ①Shaoyaogang river section treatment project; ② length of Chengnan Dike to be heightened and consolidated of 11.8km; ③ Zhupugang electric drainage station renovation and capacity enlargement works; ④ Impervious treatment of foundations of Lichunhewan and Shaoyaogang Gongnong Gate under Shiwanlong Dike; ⑤ Establishment of flood prevention headquarter together with necessary management facilities. The items above will affect certain amount of land and resettlers, and the land acquisition and resettlement is principally involved in the first two parts. All the project impacts and resettlement measures are based on the preliminary design and a detailed survey of all the indices. The resettlement modes and compensation standards have been reviewed and endorsed by Xiangtan City People’s Government. The next stage technical design will be based on the preliminary design, so the basic scheme and project impact scope will not have any major changes. If there are changes during technical design or implementation, an updated RP will be prepared and submitted to ADB for concurrence.

2. The project executing agency for the Hunan Flood Control Project is the Key Project Office of Hunan Province Water Resources Department (HPWR). For the proposed Xiangtan Urban Control Subproject, the Local Project Management Office (LPMO) in Xiangtan Water Resources Bureau is the project implementation agency. This resettlement plan has been compiled by LPMO under the guidance of PPMO and assistance of Hunan Hydro and Power Design Institute (HHPDI) and ADB consultants.

B. Scope of Land Acquisition and Resettlement 3. The proposed Xiangtan City Urban Flood Control Project covers 2 districts of Xiangtan City, namely the districts of Yuhu and Yuetang . According to the evaluation on impacts in details, the land of 25.08 hectares will be acquired, in which, the cultivated land accounts for 14.9% amd pond account for 15.9%. The remaining 69.2% are housing plot, flood land, industrial land, residential land and other land use. During the construction period, the lands of 26.06 ha will be temporarily occupied. Based on per capita cultivated land in affected villages, the land acquisition will affect 228 persons in 54 households and only 103 persons in the affected area need full economic rehabilitation. On average, each affected people would lose only 0.02 ha of cultivated land, which represents 60.71 percent loss of their current cultivated land.

4. Along with land acquisition, a total of 28947.41 square meters of buildings would be demolished, and 131 households of 472 persons should be relocated. Among total affected houses, steel-concrete and brick-wood structures account for 79.14% of the total area of demolished houses. The relocation will provide an opportunity to improve current housing condition for relocated households. For affected rural households, they will be moved a short distance to another site within their original villages.

5. Other affected assets include traffic, telecommunications and electrical infrastructure, walls, sunning ground and ponds. All lands, housing and other assets are compensated at replacement values.

C. Policy Framework and Entitlements 6. For people unavoidably affected, the resettlement objective is to achieve equal or better income and living standards in line with the PRC Land Administration Law (1998) and the ADB’s Policy on

3 Involuntary Resettlement. The PWRD will ensure that any people losing land, housing, other assets or income source are assisted to fully restore their income and living standards. The Hunan Provincial Government in 2000 issued a Land Administration Decree to implement the 1998 Land Administration Law, which stipulates the regulations for land compensation, resettlement subsidies, young crop compensation, house compensation and other measures to carry out resettlement. According to the policy, the total compensation (land compensation, resettlement subsidy and young crop) will be set at CNY 27880 per mu for irrigated farmland, CNY19680 per mu for dry land, CNY27200 per mu for ponds, CNY24200 per mu for residential land, CNY13440 per mu for the flood plain and CNY55760 per mu for the land use by enterprises and institutions. Those people losing land temporarily during construction are received a payment equivalent to production value foregone for the period of loss, which is expected to be 2 years. The land used temporarily are restored by the contractor to the original condition, or else additional funds are provided to the owner to restore the land. For structures to be demolished, replacement value are provided to the affected households based on compensation rates adopted in the affected districts, namely CNY 471 per m2 for urban steel and concrete structures; CNY 362 per m2 for urban brick and concrete structures, CNY 305 per m2 for rural steel and concrete structures; CNY 278 per m2 fand CNY 238 respectively for brick and concrete structures in town and rural areas. The people, who lost their houses, are get certain amount of fund. By the principle, no residential lands will be arranged for urban residents. And the compensation for their houses is CNY 150 per square meter according to the compensation standard of urban residence land. There is no reduction in house compensation for depreciation, and people will be allowed to salvage materials from their old houses.

D. Resettlement Strategy 7. Efforts to minimize resettlement effects have been made after consultation with local officials during the setting of the alignment in the initial feasibility study. The number of relocated households was kept to just 116 households of 560 persons. For those unavoidably affected, the resettlement strategy is to replace losses of housing, land, other assets, infrastructure and income.

8. Among all the affected people, 228 persons in 54 households will be affected by permanent land acquisition, with the affected area per capita being 0.02 ha. About 1/6 of affected land is cultivated land, most of which are low in yield and often flooded. ① Among 8 villager groups of 4 affected villages, the affected people of 6 groups are willing to be relocated by readjusting the cultivated land in original groups. Since the land resources in these villager groups are rich, the cultivated land per capita after land acquisition will be 0.54mu/person~0.72mu/person, and the affected farmers are used to agricultural cultivation, lack of other living skills and willing to keep their original traditional production mode and living source. It is proposed to adjust cultivated land of 33.55mu in the groups to relocate 66 persons; ② Two groups possess less surplus cultivated land after land acquisition, so the readjustment can’t be conducted in the groups or in the villages. One group has the geographical advantages and market demand for developing greenhouse vegetable, so it is proposed to develop 5.4mu field for greenhouse vegetable to relocate 20 persons; and for the other group, it is proposed to develop 4.25mu cultivated land to relocate 17 persons.

9. The PPMO and LPMO will ensure that the resettlement entitlements are provided to the people affected prior to the ground leveling and demolition commencement. Land compensation and resettlement subsidy will be paid to the affected village collectives. Housing compensation and compensation for young crops and other assets will be provided directly to people losing those assets. Compensation for infrastructure such as electrical and communication fixtures will be paid to the concerned government departments for restoration.

10. The resettlement regulations have standard provisions for moving allowances to assist the affected people during the transition phase. Also, the contractors for the project will be requested by PPMO and LPMO to give priority to resettlement affected households in the allocation of unskilled jobs during construction. This has been handled through consultation with the township and village leaders.

4

E. Institutional Arrangements 11. The Hunan Provincial PMO utilizing ADB loan will assume the overall responsibility for implementing resettlement according to the approved RP. A Project Resettlement Office (PRO) within PPMO will be directly responsible to co-ordinate the planning, implementation, financing and reporting of land acquisition and resettlement for all proposed flood control subprojects. Xiangtan City project leading group will be charged by leaders from Xiangtan People’s Government, its main responsibility is to reinforce guidance to project implementation course of the under the jurisdiction, coordinate working relationships between townships (towns, sub-districts) under the jurisdiction, and ensure successful fulfillment of the construction of main works, land acquisition and demolition, and resettlement. The municipal project office will be set under the leading group to handle daily affairs. The resettlement implementation and management office under the municipal project office will carry out the management, planning, implementation, coordination, supervision, and monitoring of the resettlement, take the primary responsibility for the resettlement consultation, implementation and timely delivery of entitlements, with assistance from concerned township and villages.

F. Vulnerable Group

12. Based on the investigation, among all the affected population, no ethnic minority exists.

13. The project land acquistion will affect 5 households of 11 vulnerabl persons, accouting for 0.9% of the total affected peoples, most of them are those urban poor who are entitled to minimum living safety allowance and those disabled or elderly living alone.Under the Resettlement Plan, vulnerable groups will receive the following additional assistance: (i) physical help in housing construction and relocation free of charge and (ii) a special subsidy will be paid to enable them to maintain their living standards while constructing their houses. The specific amount for such assistance is determined according to the actual condition and their needs. For this purpose, PPMO agreed to set aside a special fund of 1% of the total resettlement cost, which will be used to provide direct and needed help for those vulnerable people.

G. Consultation and Grievance Redress

14. Relevant national, provincial and municipal laws require disclosure and consultation with people affected. The people affected have been notified about the key elements of the RP during meetings and interviews. Prior to implementation, there are further consultations arranged by township and village officials to discuss specific impacts in each village and how they are addressed. The people losing housing are offered a choice of housing sites; and those losing agricultural land have the opportunity to consider suitable income replacement alternatives. All villagers have input to decisions on how to utilize the collective compensation funds.

15. In July 2009, a resettlement information booklet was distributed to all affected townships, villages and households by the resettlement office of Xiangtan City. The information booklet contains the resettlement scope, expected timeframe, compensation rates for land and other assets, other assistance to replace assets, relocation and economic rehabilitation strategies, and the grievance redress mechanisms. The city, township and village officials ensured that any concerns raised by the people affected are quickly addressed.

16. In case of grievance, the affected people can submit their oral or written complaint first to the village committee or the township resettlement office. If their complaint is not settled in two weeks, they can seek redress at the district resettlement office or LPMO, within one month. If still unresolved within two weeks, the LPMO or PPMO tried to achieve a solution.

17. In case the affected people is not dissatisfied with the resettlement plan, complaint can be made

5 through ADB accountability mechanisms. The accountability mechanism provides independent forums and channels, where person affected by ADB financed project can raise a question, seek solutions, as well report possible violations of ADB policies and procedures.

H. Monitoring and Reporting 18. The detailed plan for internal and external monitoring and evaluation is included in the RP. LPMO engaged a qualified monitoring agency to carry out independent resettlement monitoring and evaluation. The independent monitoring agency ascertains the extent to which the affected people have (i) received their full entitlements on time and (ii) fully restored their livelihoods, income levels and living standards. It conducted a baseline survey prior to resettlement, semi-annual investigations during resettlement and annual survey updates for two years after the completion of resettlement. The household survey included a representative number of those severely affected by loss of land, those losing housing, and those classified as minority and economically vulnerable.

19. Led by Project Management Office under Hunan Water Resources Department, Xiangtan Municipal PMO has set up a quarterly reporting system, and periodically submits the report to the PPMO. The PPMO, through resettlement progress reports, provides ADB with progress of land acquisition and resettlement. The independent monitoring agency periodically submited the municipal PMO with independent monitoring and evaluation reports, and the PPMO also provided ADB with copies of the independent monitoring and evaluation reports to be prepared twice a year during resettlement implementation and once a year after resettlement completion. After completion of the land acquisition and resettlement, municipal PMO submited the resettlement completion report to the PPMO who submited it to ADB.

I. Finance and Implementation Schedule 20. The RP budget estimate is CNY 25.6664 million, for all costs including compensation, resettlement subsidy, payment for other assets such as housing, moving allowances, subsidy for vulnerable groups, fees for resettlement administration, and monitoring and evaluation. PPMO guarantees to supplement the resettlement budget to meet any shortfall which emerges in achieving the resettlement objectives.

21. The resettlement implementation schedule has been prepared based on the Project construction timetable agreed by the EA with ADB. Land acquisition was carried out from September of 2007. The house demolition was completed in December of 2010.

6 1. General Description of Project 1.1 Project Background Hunan Province is located on the south bank of middle reaches of Changjiang River, bordering Province on the east, neighboring the on the south, connecting Guangdong Province and Guangxi Province, and close to the Guizhou Province and City with the unbroken mountains in Guizhou and Chongqing areas. Changjiang River separates Hunan Province and Province on the north, and nearly 70% cities of Hunan Province are located in mountainous areas or hilly areas. These cities lie in the areas with relatively high ground elevation, and the landform varies greatly. These areas are subject to the flash flood though they are affected little by the and the propping of tail water level of the four rivers. Because the river level in mountainous areas rises sharply and abruptly with great flow velocity, the cities along the river are always destructively damaged.

In November of 1999, Hunan Province Hydro and Power Design Institute worked out the report on urban flood-control planning in Hunan Province according to Flood-control Planning Outline for Changjiang River Drainage Area and Compilation Outline for Urban Flood-control Planning (Ministry of Water Resources [1998] No.215 Document). This report covers 91 cities, plans for the 18.3 million urban populations, and 2253km2 urban areas. The embankment-construction-oriented project plan is determined in the report, and the existing embankments to be heightened and reinforced are 1037.16km in total, and the would-be-built embankments total 600.53km. Only the cities of above-city-level and once seriously damaged by the flood in the mountainous areas in Hunan Province will be covered by this urban flood-control project in this time. They shall be the economy developed area, such as Xiangtan, Xiangtan, and , which are all the very important industrial cities, boasting the various industries of machinery, electricity, metallurgy, chemicals, building materials, paper making, mining, medicament, and foodstuff. And, of the local areas these cities shall be the financial, communications, and business centers as well as the science and education centers, where the municipal or city government is located, and moreover the distributing center of agricultural produce, industrial product, and commodities. Their economic status is very important.

These cities are the main centers of the economic development of those areas with dense population, and are clustered with properties. If these cities are submerged or suffered great losses, the economic development of local areas will be seriously affected. In addition, the manpower and material resources are abundant in these cities; it is the main rear base for flood-control and providing disaster relief. The submergence of these cities will bring the disaster relief and rehabilitation into a passive situation. In years, the government at every level in Hunan Province and the local masses took great pains and sacrificed a lot for fighting the floods in these cities, and enormous achievements were achieved. According to statistics, in the 36 urban areas undertaking the project, total 286.628 km long flood-control embankments, and 141 drainage sluices, and 124 drainage pump stations of 15648kw have been built. Because the flood-control works is improving slowly, the present urban flood-control standards of these cities are low, which are only for the 4-year-occurrence ~ 20-year-occurrence floods, and their waterlogging drainage abilities are only for floods between 3-year-occurrence ~ 8-year-occurrence, and only a few cities are in the fortified status, while most cities are undefended or incompletely defended.

At present, the urban flood-control standard in project area is low. The flood disasters hit there in successive years. According to historical record, great floods occurred in 1980, 1981, 1983, and 1988 after the frightful flood cataclysms in 1954 and 1955. The losses caused by flood and waterlogging rose year after year. In 1990s, flood disasters frequently happened, and the losses due to the flood disaster rose sharply. In 1991, 1994, 1995, 1996, 1998, and 1999, large floods and waterlogging disasters happened successively, which caused great losses. Many cities were submerged wholly or partly, and nearly all cities are damaged by flood and waterlogging to various degrees. In 1991, the losses caused by flood disaster amount to 760 million yuan; in 1993, the losses caused by flood disaster amount to 1870 million yuan; in 1994, the losses caused by flood disaster amount to 3090 million yuan; and the great floods in 1995, 1996 and 1998 each caused over 5000 million yuan losses, reaching 5610 million yuan, 10900 million yuan and 5973 million yuan respectively.

Such enormous losses caused by flood and waterlogging disasters have seriously hindered the life and property of people in urban areas. Therefore, the construction progress and urban flood-control project strengthening shall be speeded up and beefed up to Xiangtantate the economy development being in a speedy, stable and forward

7 way.

After the treatment for several years, the urban flood control of Xiangtan City has formed 3 independent flood control circles of Hexi, Hedong and Yangtianhu, but the existing flood control system has not been complete, the Hedong flood control circle has not been completely encircled, a portion of dikes have not been up to the flood control standard, thus flood disasters frequently occur in case that the rainstorms befall. According to the statistics, flood disasters of large sizes burst out in 1976, 1994, 1995, 1997 and 1998. The flood burst out in 1994 resulted in maximum flood losses,including direct economic loss of RMB 210 million yuan, a population of 0.545 million affected, Hedong dike collapsed, 2142 houses broke down with total area of 0.0231m2 as well as the stoppage of industrial and mineral enterprises for more than 100 days. With the continuous economic development and increasement of the city dimension and the increasement of population and properties year by year, providing a flood of 1 in 100 year return event should occur, by way of the existing facilities, the urban area would be inundated by water, Hedong circle would have an inundated depth of 3 to 5m, the Hexi circle 2 to 10m, Chengnan development zone would have an inundated area mounting 29.57km2, almost 60 thousand residents would suffer from it (P=2%), the 320 national highway and 3 railway trunks would be inundated, and accordingly, the transportation would be cut off, and the losses resulted from floods are miserable. Therefore, for Xiangtan City with concentrated properties, population as well as low flood control capability, it is urgent to strengthen the construction of the urban flood control and waterlogging treatment works, quickly promote the urban flood control and waterlogging treatment capabilities and reduce the losses brought by flood and waterlog disasters. It’s quite necessary for creating a safe atmosphere of production and livelihood, making sure the safety of people’s lives and their properties and guaranteeing the sustainable economic development. In short, the social and economic benefits rewarded will be uncountable.

1.2 General Situation of Project 1.2.1 Areal Geography Location

Xiangtan City is situated at the downstream of Xiangjiang trunk of Dongting Lake system, which is adjacent to on the west, borders with City, and connects with Xiangtan City on the south-west. The urban area governs Yuhu and Yuetang districts with an area totalling 281km2.

See attached drawing 1 for the Project Location of Xiangtan City Urban Flood-control Project.

1.2.2 Contents and Scale of Project Construction

Xiangtan City Urban Flood-control Project is a sub-project of hilly area urban flood-control project in Hunan Province utilizing the loans from ADB. Based on the selected project scope, flood control and waterlogging harnessing standard, and construction tasks, the construction scale of Xiangtan City Urban Flood Control Project is determined as:

1). Improvement Works for Shaoyaogang Section: the Shaoyaogang block expansion works consists of two sections. One is the block section, and the other is old power plant section; 2). Chengnan Dike, 11.8km long, is a closed flood dike in Chengnan Development District of Xiangtan City, which shall be heightened and thickened based on the standard of 1 in 50 year flood; 3). Reconstruction and capacity increase of Zhubugang Electrical Drainage Station: 4 sets with installed capacity of 1260kW (315kW per unit) will be built, and the associated Hunan flood diverging canals (I and II) in a length of 5.573km shall be dredged; 4). The foundation of Shiwanlong Dike at the Lichunhewan Section and the Shaoyaogang Gongnong Gate Section, 346km long, shall be treated by high pressure jet grouting; 5). The flood control command system shall be established, and necessary management facilities shall be provided.

1.2.3 Project Investment Estimation and Planned Progress

According to the Feasibility Study Report on Hunan Province Xiangtan City Urban Flood-control Project Utilizing Loans from Asian Development Bank, which is compiled by the Hunan Province Nanfang Hydraulic and

8 Hydropower Design Institute, the estimation of the total investment of the project is RMB 33.6142 million yuan, including the resettlement investment of RMB 25.6664 million yuan. Based on the project progress, total construction period of this Project is 39 months.

1.2.4 Socioeconomic Benefit of Project

After the implementation of the project, the flood control capacity of Xiangtan City urban area is elevated to against 1 in 100 year return event, the waterlogging treatment standard is enhanced correspondingly, therefore greatly mitigating the burden of flood control and prevention, being favorable for the normal and sustainable development of the society. The project implementation in combination with the municipal construction including city roads, docks, bank line treatment, waste water and sewage discharge, not only beautifies the environment and improves the traffic congestion but also increases the places of amusement and recreation, favorable for the munical construction speed of the city. Owing to the flood control standard elevated, the coastal land to be developed or with low development value has high economic value, brings new economic growth points for the improvement of the urban production and living atmosphere and development of the new urban area, and produces obvious social and economic benefits.

According to the analysis on the economic appraisal of the project preliminary design report, the full investment economic internal rate of return of the project is 19.38%, larger than 12%; the economic net present value is RMB 141.9764 million yuan, the economic benefit cost ratio is 2.03, larger than 1. Accordingly, all the economic indices are good, and it owns strong anti-risk capacities, and the project implementation is rational in the economy.

1.3 Affected Scope of Project

According to the Xiangtan City Urban Flood Control Planning, the urban area of Xiangtan City is divided into Hexi, Hedong and Yangtianhu flood control protective circles with a total dike length of 61.56km. The project mainly involves the Chengnan dike of 11.8km heightened and reinforced, Shaoyaogang river secton treatment dike of 792m newly built and Zhupugang electric drainage station reinvoated and capacity enlargement. The major structural measures in relation to the land acquisition and demolition include dikes reinforced and newly built, culverts and electric drainage stations renovated, reconstructed and newly built, meanwhile, temporary land use of construction site and borrow yard.

The land acquisition areas, and the area in which the people’s life and production is seriously affected by the project construction shall all be regarded as the affected areas due to the project land acquisition and relocation. In this phase, the affected area due to the land acquisition and relocation in project is based on the recommended scheme in the project preliminary design phase. The scope of impact is determined by detailed survey assisted with 1/2000 topographic map, which involves 6 villages (residential committees) of the two towns (townships) in Dongshan from Yuetang and Yuhu districts. The final scope of land acquisition and relocation might have minor adjustment during implementation.

1.4 Compilation of Resettlement Plan 1.4.1 Basis and Objective for Report Compilation 1.4.1.1 Basis for Design

1) Hunan Province National Economic and Social Development “the Tenth Five-year” Plan and Long Range Plan for 2015 2) Xiangtan City National Economic and Social Development “the Tenth Five-year” Plan and Long Range Plan for 2015 3) Urban General Planning of Xiangtan City (2001-2020) 4) Statistical Yearbook of Xiangtan City (2003-2005) 5) Urban Flood-control Planning Report of Xiangtan City 6) Feasibility Study Report on Hunan Province Xiangtan City Urban Flood-control Project Utilizing Loans from ADB (Hunan Province Nanfang Hydraulic and Hydropower Design Institute)

9

1.4.1.2 Policy Foundation

1) National laws and regulations 2) Laws and regulations in Hunan Province 3) “Involuntary resettlement policy” of ADB (published in November of 1995) and “Resettlement Handbook ------practical and operable guidance on practice” (published in 1998).

1.4.1.3 Objectives of Policies

1) Adopt the engineering, technical, economic measures to avoid or minimize the quantities of physical goods to be removed and relocated; if the land acquisition and relocation is unavoidable, try best to adopt the effective measures to minimize the impact on the local residents due to the land acquisition and relocation. 2) In project preparation phase, conduct the social economy investigation and compile the relevant resettlement plan; 3) The resettlement shall be based on detailed physical indices in terms of relocated material goods and compensation standard in order to increase or at least restore the income and production levels for the affected people; 4) Promote resettlement in a developing mode. The resettlement from in the rural areas is land-based, supplemented with possible employment in second or tertiary industries. 5) Encourage the resettlers and original residents in resettlement area to take part in the resettlement planning; 6) Resettlement prior in the original community. 7) The resettlers and the former residents in resettlement area are benefited from the project.

1.4.2 Method of Report Compilation

The Key Project Management Office under the Water Resources Department of Hunan Province as project EA is responsible for overall resettlement preparation. The relevant resettlement design units, consulting units and local government all participated in the process. In May, 2006, the designers had conducted the general survey and statistics on the physical indices for the land-acquisition-affected area with the active support from local governments in project area. Based on census survey, detailed sample survey on social economic conditions and attitudes of the affected people was also carried out during the same period.

In investigation, designer had consulted with the PMO (project management Office) of Xiangtan City and held several resettlement coordination meeting attended by the government department of every level, namely the districts of Shifeng, Hetang and Lusong and representatives of resettlers from affected area. Comments were made on the resettlement plan, economic rehabilitation options, and compensation, which were the basis for developing resettlement plan.

According to the current national policies, laws and regulations and the requirements on resettlement by ADB, the resettlement team carried out detailed analysis on the degree of impact and feasibility of proposed rehabilitation for each affected town(ship) in project area. According to the suggestion and opinions on resettlement plan for core subprojects set forth by PPTA experts and ADB and analysis on rationality and feasibility of impact degree of all town (ships), the resettlement plan for Xiangtan Subproject was finally prepared and approved by local people’s government in the project area.

10 2. Project Impacts

2.1 Measures for Avoiding or Reducing to the Minimum the Land Acquisition and Relocation Impacts 2.1.1 Measures for Reducing the Land Acquisition Impacts in Project Design Phase Since the project was launched, in order to reduce the impact on the local social economy due to the project construction, the flood-control scenic road plan has been revised and improved for several times, and the special technical review meetings had been conducted.

1) In the project planned phase, in order to reduce project land occupation and house demolition, in the premise of meeting the flood passing conditions and stabilized embankment, the flood control embankment should be properly leaned against exteriorly, the excavation and filling works quantity of the embankment should be compared for several times and the embankment line should be corrected repeatedly to obtain the economical and reasonable embankment line.

2) The direction of alignment shall try best to be based on the existing levees. The selected alignment should try to reduce the acquired land areas, avoid house demolition and minimize impacts on irrigation Facilities. In the densely populated area in cities and towns, the alignment of new dikes shall try best to avoid demolition of highrise buildings or multi-floor buildings to reduce the quantities of demolition and relocation.

The 3 dike type schemes of this design are compared as follows:

Scheme I：the dike type is earth dike; the wave wall with a height of 1.2m will be set on the dike crest; dike body will be filled with the mixture of silt, earth and stone; the dike crest is 6.0m wide; the prefabricated concrete slab slope protection will be adopted for the riverside slope with a slope ratio of 1:2.0; and sodding slope protection will be adopted for landside slope with the slope ratio of 1:2.5.

Scheme II：the dike type is flood wall and the wall body will adopt mortar rubble; part of the foundation adopts concrete and C20 concrete water-retaining slab face with a thickness of 0.30cm will be cast on the wall space on site; the wave wall with a height of 1.0m will be set on the wall crest; the foundation will be established on the silty clay layer; the mixture of earth and stone will be filled behind the wall; the dike crest is 5.0m wide; and sodding slope protection will be adopted for landside slope with the slope ratio of 1:2.5.

Scheme III：the dike type is steel concrete flood wall; the wave wall with a height of 1.0m will be set on the wall crest, and the mixture of earth and stone will be filled behind the wall; sodding slope protection will be adopted for the landside slope with the slope ratio of 1:2.5.

The comparison for major works quantity and project investment of the per linear meter dike in 3 schemes is presented in Table 2.1-1.

Comparison Table for Major Works Quantity and Investment of Dike Type Scheme Per Linear Meter Table 2.1-1

Indices Item Unit Mortar Rubble Flood Steel Concrete Flood Earth Dike Scheme Wall Scheme Wall Scheme （Scheme I） （Scheme II） （Scheme III） Earthwork excavation m3 13.32 35.42 56.72 Earthwork filling m3 89.24 56.15 77.85 M7.5 mortar rubble m3 1.0 25.41 C10 concrete cushion layer m3 0.56 0.82

11 C20 concrete m3 0.54 1.48 24.60 C15 concrete slope m3 8.58 0 protection Reinforcing steel kg 41.8 33.6 85.4 Sodding slope protection m2 10.8 6.7 7.6 Relocated population Person 0.08 0.032 0.024 Demolished houses m2 3.41 1.82 1.72 Area of land occupied by m2 30.3 15.47 14.58 excavation and digging Compensation for special yuan 355 35 20 facilities Investment yuan 5897 9086 10258

We can draw a conclusion based the above Table that among the 3 schemes, the investment for flood wall is larger than that for earth dike; the project investment of Scheme II and III is higher than that of Scheme I obviously with the investment each linear meter RMB 3189 yuan and RMB 4361 yuan respectively of Scheme II and III more than that of Scheme I. Therefore, with regard to the investment, the earth dike scheme is obviously much better.

Since the flood control dikes of Shaoyaokakou section and Chengnan (southern city) development zone were heightened and thickened on the original earth dikes and the work quantity of demolition is relatively small, and the earth material is sufficient for satisfying the requirements of dike body filling; meanwhile by comprehensively considering the layout of the city, the coordination and appearance of the earth bank along the route, and the heightening of the earth dike in future, this time we recommend the earth dike scheme to be adopted.

3) The construction design shall be optimized in such a way to shorten the construction period, and reasonably arrange the house relocation and construction period in order to minimize the losses of resettlers’ properties. For example, the house relocation and rebuilding shall be conducted in the farm slack season, and the land acquisition or occupation shall begin after harvesting the crops. For the temporary land occupation that involve more than 2 years, efforts will be made to try best to utilize the wastelands.

4) In the project design, careful consideration will be made to minimize the inconvenience brought about to the life and production of local residents due to the dike construction. In general, for the convenience of local residents, all damages caused by the construction to the irrigation channels, mechanical pier, communications Facilities and other infrastructures will be restored to keep the complete original functions in a timely manner.

2.1.2 Measures for Reducing the Impact due to Land Acquisition in Project Construction

The lands occupied in this project are distributed in linear form. As for the whole project area, the project construction won’t affect the local industrial and agricultural production, people’s life and social economy greatly. The land acquisition and relocation along the linear area will not bring much impact. However, in order to minimize the impact on the local area due to the project construction as much as possible, special attention will be paid to the layout of construction site and selection of construction scheme, and prevent the unnecessary land acquisition and house demolition. The following measures shall be adopted:

1) Before demolition and relocation, organize the relevant persons to conduct the on-spot survey. Try to remove less or do not remove the houses which is unnecessary to remove or can be partly removed in practice.

2) Before the demolition of the buildings due to the temporary land occupation by the project, report to the unit of owner by PMO to empty it. Or set up the temporary housing to be used in resettlement within the unit area. After the project completion, rebuild new buildings and return to the original owner or unit.

12 3) For the loss of residents caused by the demolition and relocation, adequate compensate according to the replacement value will be paid to reduce the unfavorably impact on resettlers.

4) The resettlement area shall be located at the place close to the original residential areas so as to keep the existing social relationship for the affected people, on the other hand, it will also reduce the commuting for the affected people.

5) For relocated enterprises, notify them in advance, and arrange the site for relocation, compensate the loss, try best to shorten the interruption period, and negotiate with the City Project Management Office to provide proper rehabilitation for affected employees.

6) During relocation and resettlement, the concerned local functional departments shall vigorously support the resettlers and affected enterprises, provide the convenience for them and carry on the resettlement work smoothly, and reduce the loss and relief the burden on resettlers.

7) Strengthen the system of public participation. Before the project construction, clarify the project commencement time and project construction planning progress by putting Notice in the project affected area and the resettlement area, disclose the compensation policies for land acquisition and resettlement, and collect comments and opinions from the relocatee and original residents in resettlement area. In project construction period, in order to benefit the local community, the priority is given to use the local materials and use the local transportation and labor if the technical conditions allowed.

8) Reduce the dust emission and strengthen health management for construction workers. The construction unit carefully planed the routing for transport earthwork and stonework. Measures are adopted to guarantee that the soils and stones won’t be sprinkled along the way from the truck full of loading, and thus affect the environment tidiness. In construction period, a large number of labors come to the worksite to undertake all kinds of works and services. In order to guarantee the public security and orders in work site and the health of various groups in construction area, the project construction unit supervised and urged the builders to obey the regulations of local environment sanitation department, toughen the management on the healthy protection for builder group, timely clear the domestic waste on construction site, keep the construction area tidy, and prevent the occurrence and transmission of infectious diseases.

2.2 Investigation on Project Impacts 2.2.1 Investigation Contents In May 2006, Hunan Province Hydraulic and Hydropower Design Institute, together with the Xiangtan City Water Resources Bureau, the government at each level of the three districts of Shifeng, Hetang and Lusong, formed a joint investigation team. The team conducted the comprehensive survey on the project impacts according to the coverage determined in engineering design and the 1:2000 geologic type topographic map in hand. The contents of investigation included the land acquisition, the land acquisition affected population, houses to be removed and relocated, and supplementary facilities, scattered trees, small businesses of industry and commerce, enterprises and institutions, and agricultural sideline production facilities and special facilities, etc.

2.2.2 Investigation Method 1) Investigation on Land Acquisition: The investigators clearly found out on-spot the ownerships of various lands according to the 1/2000 topographic map in hand. The area of cultivated land, garden plot, woods, and various lands were measured and calculated in the unit of villager’s group.

2) Demographic Census: In the investigation in the land acquisition and relocation, affected people was classified into three kinds, affected by land acquisition without relocation, affected by demolition and relocation without land acquisition, and affected by both land acquisition and relocation. The actual affected populations were further divided according to the non-agricultural population and agricultural population, with comprehensive investigation in the unit of

13 households on the nationality, age structure, education background, and employment status. They were checked out on site according to the household register card, and register the results of survey in detailed lists for each family.

3) Investigation on Houses and Auxiliary Facilities: The comprehensive survey on house structures was conducted; the area of houses was measured and the quantities of supplementary facilities were investigated household by household, and then registered them in detailed lists.

4) Investigation in Scattered Trees: The scattered trees were counted on-spot in the project-land-acquisition affected area to classify the fruit trees and other trees and separately register according to the tree types.

5) Investigation in Small Business of Industry and Commerce The small business of industry and commerce were investigated and registered in the way of household by household. The investigating and statistical contents include the business items in operation, coverage of business area, number of employees, annual turnover, and operating profit, etc.

6) Investigation on Enterprises and Institutions: The following contents were surveyed and checked: names of affected enterprises in the land to be expropriated, location, department in charge, month and year of establishment, the coverage of factory area, land area for production, area of buildings, number of staff, fixed net assets, annual output volume of major products, annual output value, annual profit turnover, lump sum of tax, and lump of wages per month, etc.

7) Investigation on Special Facilities: The investigator checked the quantities on site, registered in detailed lists by item according to the 1:2000 topographic map of geologic type and the data supplied by department in charge. All the survey results of physical indices were reviewed and confirmed by relevant departments.

2.3 Investigation Results on Project Impacts According to survey, the land acquisition and relocation for this project involves 6 villages (or residential committees) of 2 sub-districts in Yuetang and Chengnan Districts. See Table 2.3-1 for summary of project impacts. The project impacts are summarized in Table 2.3-1.

Table for Physical Indices Affected by Project Land Acquisition of Xiangtan City Urban Flood Control Project Table 2.3-1 Yuetang Chengnan Item Unit Total District District Enterprises and Institutions 1. Administrative Region City（District） No. 2 1 1 Sub-district Office No. 2 1 1 Village（Residential Committee） No. 6 2 4 2. Affected Population due to Project 0 2.1 Impact Due to Land Acquisition 0 Number of Household Household 54 54 Population Person 228 228 Population in Need of Production Resettlement Person 103 103 2.2 Impact due to Demolition and Relocation 0 Number of Household Household 131 114 17

14 Table for Physical Indices Affected by Project Land Acquisition of Xiangtan City Urban Flood Control Project Table 2.3-1 Yuetang Chengnan Item Unit Total District District Enterprises and Institutions Population Person 472 397 75 Households to be Resettled by Building Houses Household 131 114 17 Population to be Resettled by Building Houses Person 472 397 75 2.3 Affected Units 7 7 Of Which: Enterprises and Units No. 6 6 Institution Units No. 1 1 Number of Staff Person 378 378 2.4 Total Population Affected by the Project Person 1200 389 433 378 3. Permanent Land Acquisition mu 376.2 112.3 263.9 3.1 Collectively-owned Land 174.87 22 152.87 Paddy field mu 27.3 27.3 Dry Farmland mu 28.57 28.57 Pond mu 60 22 38 Residential Land mu 16.2 16.2 Beach Land mu 42.8 42.8 3.2 State-owned Land 201.33 90.3 111.03 Land Used by Industry mu 27.2 18.2 9 Housing Plot mu 12 12 Other land use mu 162.13 60.1 102.03 4. Temporary Land 390.9 62 328.9 4.1 Cultivated Land 83.8 44.4 39.4 Dry Farmland mu 41.1 10.1 31 Paddy Field mu 42.7 34.3 8.4 4.2 Wood Land 281.1 12.6 268.5 Timber Forest mu 134.4 12.6 121.8 Shrub Land mu 146.7 146.7 4.3 Waste Land mu 25.9 5 20.9 5. Houses and Auxiliary Facilities 0 5.1 Private Houses m2 12932.41 4233.41 8699 Brick-concrete Structure m2 6894 2874 4020 Brick-wood Structure m2 4523.41 753.41 3770 Simple Structure m2 1515 606 909 5.2 Public Houses 16015 8171 7844 Steel-concrete Structure m2 12989 6884 6105 Brick-concrete Structure m2 3026 1287 1739 5.3 Auxiliary Facilities 0 Bounding Wall m2 668 668 Sunny Ground m2 160 160 Water Tower Piece 1 1 Chimney Piece 2 2

15 Table for Physical Indices Affected by Project Land Acquisition of Xiangtan City Urban Flood Control Project Table 2.3-1 Yuetang Chengnan Item Unit Total District District Enterprises and Institutions 6. Special Facilities 0 6.1 Traffic Facilities 0 0 Hasty Road km 3.5 2 1.5 Culvert Gate Piece 1 1 6.2 Electric Power Facilities 0 High-voltage Line km 0.5 0.5 Low-voltage Line km 5.6 1.8 3.8 Power Tranformation Facilities Piece 4 2 2 6.3 Post and Broadcasting Facilities 0 Telephone Line km 2.38 0.8 1.58 Cable TV Line km 2.67 0.9 1.77 6.4 Electricity-Irrigated Dock Machine Piece 5 1 4

2.3.1 Land Affected by Project 1) Permanent Land Acquisition Permanent land acquisition in this project involves 6 village (or residential committees) in 2 sub-districts in 2 districts. Various lands with an area of 376.2mu will be expropriated, of which the state-owned land is 201.33mu (including industrial land of 27.2mu, residential land of 12mu and other land use of 162.13mu), the collectively-owned land is 174.87mu (including paddy field of 27.3mu, dry land of 28.57mu, pond of 60mu, villagers’ housing plot of 16.2mu and flood plain of 42..8mu). See Table 2.3-2 for details of the investigation results of the permanent land acquisition in this project.

16 Investigation Statistical Table of Project Permanent Land Acquisition in Xiangtan City Urban Flood Control Project Table 2.3-2 Collectively-Owned Land State-Owned Land Cultivated Land（mu） Land Used Village Rural Other Township Total Beach by Housing District （Residential Total Pond Residential Total Land (Sub-district） （mu） Padd Dry Land Industr Plot Community） （ ） Sub-tot （ ） Land （ ） Use mu y Farmla mu （ ） mu y （ ） al （ ） mu mu （ ） Field nd mu （mu mu ） Total 376.2 174.87 55.87 27.3 28.57 60 16.2 42.8 201.33 27.2 12 162.13 Chengnan 263.9 152.87 55.87 27.3 28.57 38 16.2 42.8 111.03 9 102.03 District Dongshan 4 263.9 152.87 55.87 27.3 28.57 38 16.2 42.8 111.03 9 102.03 Zhangjiang 46 25.8 6.1 3 3.1 3.8 2.1 13.8 20.2 20.2 Village Tazi Village 46.7 41.2 17.3 8.4 8.9 9.3 4.8 9.8 5.5 3.2 2.3 Dongshan 100.9 55.87 19.97 10 9.97 16.2 6.7 13 45.03 5.8 39.23 Village Chengzhong 70.3 30 12.5 5.9 6.6 8.7 2.6 6.2 40.3 40.3 Village Yuetang 112.3 22 22 90.3 18.2 12 60.1 District Dongping 2 112.3 22 22 90.3 18.2 12 60.1 Hengjie Residential 66.9 14 52.9 Community 14 3.4 7.8 41.7 Wanfu Residential 45.4 8 37.4 Community 8 14.8 4.2 18.4

17 2) Temporary Land Acquisition The construction temporary land occupation refers to the temporarily-borrowed land in the project construction period, including land occupation of stone material yard, construction plant, construction warehouse, and temporary area for livelihood and temporary construction road during construction period.

①The construction plant, warehouse, and temporary living quarter cover an area of 1860m2 in total (the land occupation area is 6330m2) within the permanent land acquisition scope mainly is laid out along the dike lines, therefore, they won’t produce temporary land occupation.

② As the existing roads will be damaged during project implementation process, corresponding compensation costs shall be paid to the municipal administration department. As the compensation costs are included in the project construction contract as part of the project costs, they are paid by the construction Contractor. Accordingly, the project construction temporary road land occupation are not included and the compensation costs are not be estimated in the report.

③ In this project, temporary land primarily affects earth yards, including Shuangma Industrial Park, Dongtai Village, Hengzhou Earth Yards as well as Majia River Block Stone Material Yard. The block stone materials will be procured directly. Various lands that are expropriated reach 215600m2, involving 3 sub-districts and various land area temporarily expropriated of 390.9mu, of which, paddy field is 42.7mu, dry land is 41.1mu, timber forest is 134.4mu, shrubbery forest is 146.8mu and wasteland is 25.9mu. Average term for borrowing land is 2 years.

See table 2.3-3 for details of the statistical conditions of the investigation results of the temporary land acquisition in this project.

18 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Investigation Statistical Table of Temporary Land Acquisition in Xiangtan City Urban Flood Control Project Table 2.3-3 Temporary Land Use (mu) Remarks Type of Production Uncultiv District Material Dry Area Paddy Timber Shrubbery ated Yard Total Farml Field Forest Land Grassla and nd Soil Shuangma Yuetang Material Industrial Yard Park 142.7 8.4 64.3 55.5 14.5 Chengnan Soil Dongtai Development Material Village Zone Yard 90.3 9.4 37.3 43.6 Soil Material Hengzhou Yard 90.3 9.8 32.8 47.7 Wanfusi Spoil Area Fishery 67.6 42.7 13.5 11.4 Block Stone Majiahe Purchase Material Yard Total 390.9 42.7 41.1 134.4 146.8 25.9

2.3.2 Affected Population Due to Project 1) Affected Population Due to Land Acquisition The investigation of the affected population due to land acquisition of the project will be counted from two aspects, one is the actually affected population due to land acquisition of the project; the other is the number of agricultural population need economic rehabilitation according to the principle of Land Administration Law of the People’s Republic of China, namely, the economic rehabilitation shall be rearranged to the agricultural population who has lost all of their main productive materials - cultivated land. The concept of the number of persons requiring economic rehabilitation is calculated based on collective land ownership in rural China, which is an important indicator in analyzing land acquisition impacts in the process of land acquisition and resettlement.

Based on the physical indices during the course of investigation on land acquisition and demolition for the project, the population in need of economic rehabilitation will be counted in villagers’ groups. The agricultural population in need of economic rehabilitation for each affected village group is calculated with the area of land acquisition divided by cultivated land per capita of each group before land acquisition. The result was 136 persons.

According to the site investigation and statistics, 54 households (228 persons) are actually affected by land acquisition in the project, averaging 0.34 mu cultivated land per person.

2) Affected Population Due to Demolition According to the site investigation, relocatees of 131 households (472 persons) need relocation. The demolished residential houses reached 12932.41m2.

3) Employees in the Affected Enterprises According to the investigation, 7 enterprises and institutions will be affected by the project construction, since land acquisition and demolition only affect administrative structure or auxiliary structure, the main production and business operation will not be affected.

4) Total of Affected Population Due to Project

19 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Through statistics, 185 households (700 persons) will be affected by the project land acquisition and house demolition. Among them, 54 households (228 persons) will be affected by land acquisition (without house demolition), and 131households (472 persons) will be affected by the house demolition (without land acquisition). 378 employees will be affected by the their enterprises’ or institutions’ demolition.

Among the affected population due to land acquisition and resettlement, 103 agricultural persons need economic rehabilitation. About 131 households (472 persons) need to be rehabilitated through replacement housing.

See table 2.3-4 for details of the affected population in the project.

20 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Summary of Affected Population Due to Land Acquisition and Resettlement of Xiangtan City Urban Flood Control Project Table 2.3-4 Land Acquisition without House Removal without Population in Total To Be Relocated Village House Removal Land Acquisition Need of Township Number of Affected Type (Residential Economic (Sub-district) Number of Number of Number of Number of Staff Committee) Population Population Population Population Rehabilitatio Household Household Household Household n I.Permanent 185 700 54 228 131 472 131 472 103 378 Land Acquisition (1) Residence 185 700 54 228 131 472 131 472 103 Removal Dongping 114 397 114 397 114 397 Hengjie Residential 63 207 63 207 63 207 Community Wanfu Residential 51 190 51 190 51 190 Community Dongshan 71 303 54 228 17 75 17 75 103 Zhangjiang 12 49 11 45 1 4 1 4 20 Village Tazi Village 20 84 15 63 5 21 5 21 30 Dongshan 30 133 21 90 9 43 9 43 37 Village Chengzhong 9 37 7 30 2 7 2 7 16 Village (2) Non-residence 378 Removal Enterprises and 378 Institutions II. Affected Total 185 1078 54 228 131 472 131 472 103 378 Population

21 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

2.3.3 Houses and Auxiliary Facilities to be Demolished 1) Affected Residential Houses and Auxiliary Facilities by the Project The houses to be demolished for the project will involve Dongping Town and Dongshan Sub-districts. 131 households (472 persons) will be relocated. The demolished houses area is 12932.41m2 (brick-concrete structure of 6894m2, brick-wood structure of 4523.41m2, and simple structure of 1515m2). In addition, the project affects fence wall of 668m2 and cement sunny ground of 160m2.

According to the investigation, in the project land acquisition area, most residential houses are individually owned. All the residential houses are one or two-floor houses with brick concrete structure and brick wood structure. Since many demolished houses were built in 1980s and 1990s, the basic living conditions and the related facilities are considerably poor. Therefore, most residents also hope they can relocate as soon as possible, so as to improve their living conditions.

See table 2.3-5 for details of the investigation conditions of the residential houses to be removed in the project.

2) Affected Non-residential Structures by the Project According to the investigation, in the scope of the land acquisition due to the project, houses of 7 enterprises are to be affected by the demolition. The non-residential structures area reaches 16015m2, of which steel-concrete strucutres are 12989m2 and brick-concrete structures are 3026m2. In addition, the project affects 1 water tower and 2 chimneys .

See table 2.3-6 for details of the investigation conditions of the non-residential houses to be removed in the project.

3) Affected Temporary Structure by the Project According to the investigation, there is no temporary structure in the land acquisition range of the project.

4) Affected Illegal Structure by the Project According to the investigation, there is no illegal structure in the land acquisition range of the project.

22 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Investigation on the Resettled Houses and Auxiliary Facilities in Xiangtan City Urban Flood Control Project Table 2.3-5 Population (Person) Normal Houses (m2) Auxiliary Buildings Type of Village Simple Township Number of Total Bounding Sunny Residential (Residential 2 Brick and Brick and Structure (Sub-district) Household Total Non-agricultural Agriculture (m ) 2 Wall Ground Houses Community) Concrete Wood (m ) (m2) (m2) Total 131 472 397 75 12932.41 6894 4523.41 1515 668 160 I. Urban 114 397 397 4233.41 2874 753.41 606 Residence Dongping 114 397 397 4233.41 2874 753.41 606 Sub-district Hengjie Residential 63 207 207 2341.41 1598 323.41 420 Community Wanfu Residential 51 190 190 1892 1276 430 186 Community II. Rural 17 75 75 8699 4020 3770 909 668 160 Residence Dongshan 17 75 75 8699 4020 3770 909 668 160 Sub-district Zhangjiang 1 4 4 1105 489 504 112 40 Village Tazi Village 5 21 21 2716 1254 1187 275 218 40 Dongshan 9 43 43 3473 1614 1467 392 354 120 Village Chengzhong 2 7 7 1405 663 612 130 56 Village

23 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Investigation Table for Non-residential Houses and Auxiliary Facilities to Be Removed in Xiangtan City Urban Flood Control Project Table 2.3-6 Normal Houses（m2） Auxiliary Buildings Water Name of Unit Total（m2） Chimney Steel and Brick and Tower Concrete Concrete （Piece） （Piece） Total 16015 12989 3026 1 2 Cast Tube Manufacturing 9384 7470 1914 1 1 Branch Company Dongping Printing Works 429 429 Xiangtan Navigation Route 447 447 Station Dongping Paper Bag Factory 396 396 Hedong Flood Prevention 1022 785 237 Storehouse Xianghu Sandstone Yard 970 724 246 Ship Repairing Plant of the Municipal Water Carriage 3367 2738 629 1 Company

2.3.4 Affected Enterprises and Institutions According to the investigation, 7 enterprises and institutions will be affected by the project construction, since land acquisition and demolition only affect administrative structure or auxiliary structure, the main production and business operation will not be affected.

2.3.5 Affected Special Facilities by the Project The investigators have conducted the site investigation and registration to the affected traffic facilities, transformation facilities, post & telecommunication line, and other special facilities to be resumed or rebuilt according to the project land acquisition range confirmed by the design. The project affects the facilities such as simple highway of 3.5km, 1 culvert, 5 electric irrigation stations; 10KV high-voltage line of 0.5km, 380V low-voltage line of 5.56 km; 4 substation facilities; telephone communication line of 2.38km; and CATV communication line of 2.67km.

See Table 2.3-7 for details of statistics about survey on the special facilities affected in project.

24 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Investigation Table for Special Facilities Affected by Land Acquisition and Occupation of Xiangtan City Urban Flood Control Project

Table 2.3-7 Transmission and Transformation Water Resource Traffic Facilities Post Facility Facilities Facility Township Village (Residential District Culvert Hasty Telephone Electricity-Irrigated (Sub-district) Communities) High-voltage Low-voltage Transformer Cable TV Line Gate Road Line Station Line(km) Line (km) (Piece) (km) (Piece) (km) (km) (Piece) Yuetang

Dongping Sub-district 2 1 2 0.5 1.8 0.8 0.9 1 Hengjie Residential 0.5 0.5 0.8 0.5 0.3 Community Wanfu Residential 1 1.5 1 0.3 0.6 1 Community Chengnan

Dongshan Sub-district 4 1.5 3.8 4 1.58 1.77 4

Zhangjiang Village 0.55 1.3 1 0.6 0.25 1

Tazi Village 0.15 1.65 1 0.3 0.47

Dongshan Village 0.8 0.7 1 0.48 0.7 2

Chengzhong Village 0.15 1 0.2 0.35 1

Total 2 6 1 3.5 0.5 5.6 4 2.38 2.67 5

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2.3.6 Affected Cultural Relics and Vulnerable Groups Due to Project

2.3.6.1 Women During the survey, the team paid special attention on women in the project areas and organized group discussions attended by women. The participated women included those Han and Tujia nationalities and represented by different ages groups and education levels among those above 18 years old. In addition, through sample household survey, further understanding of women in the project area was obtained regarding their roles in their families, participation on public affairs and health issues. Of the 472 project-affected people, 248 are females.

2.3.6.2 Vulnerable Groups Vulnerable groups: Mainly include the underprivileged families (per capita income is less than 130 yuan/month), handicapped families (disabled persons) and families of the elders who live alone(widows or widowers over 70 years old), ethnic minority families, etc.

The vulnerable groups of 11 persons in 5 households will be affected by the project, accounting for 0.9% of the total affected population. They are mainly the poor population and elderly who are entitled to Urban Minimum Living Allowance. During resettlement process, the affected vulnerable groups in the project will be further confirmed through comparison and analysis between the member structures in affected families, employment status of labor, family resources, and other conditions and the data of the local civil affairs departments. Once the affected households are proved to be the vulnerable groups, the project execution agency gave special help to them during resettlement implementation process. 2.4 Impact Analysis of Project 2.4.1 Project Impact Characteristics 1) The land acquisition and relocation affects limited number of households and population. The affected population accounts for only 5.9% of the total population in the affected villages. The acquisition of cultivated accounts for 1.1% of the total cultivated land area among affected village groups.

2) The affected population and house by the project construction is 131 households (472 persons) and 12932.41m2 respectively, they are all centralized in 6 villages (Residential Committees) of Dongping and Dongshan Sub-districts (or (Towns)). In the houses to be demolished, the houses affected are made of brick-concrete and brick-wood structures, of which, about 53.3% houses are brick concrete structure.

3) The permanent land acquisition with an area of 376.2 mu is required for the project construction, of which, the cultivated land to be acquisitioned is 55.87 mu (including paddy field of 27.3mu, dry farmland of 28.57mu), accounting for 14.85% of the total land to be acquisitioned. The rest 85.15% are water pond, flood plain, housing plot of villagers, land used for houses, state industry land and other land. The project acquisition will directly affect 54 households (228 persons), of which, 103 persons need relocation. These cultivated land to be acquisitioned are distributed in 4 villages with a linear and scattered characteristics.

4) In the project, 7 enterprises and institutions are affected by land acquisition. As the auxiliary production houses or production houses of them are affected, its normal production, operation or office will not be largely impacted by project construction.

5) There are no important special facilities but small-sized infrastructures in countryside in the project land acquisition and resettlement area, except for few high-voltage transmission lines and post lines.

2.4.2 Impact Analysis Evaluation The construction of project damages the original production system in the affected area, and certain impacts will be brought to the local production and livelihood accordingly. The losses of the land resources will destroy the material conditions for livelihood of part of the farmers, so, they shall adapt to new environment for working and livelihood again. The staff of the design unit have fully considered the destructive effect of land acquisition on the local production and livelihood system during project design process, and accordingly, they have constantly optimized the project design, adopted project measures to reduce the land acquisition area, and minimized the

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impacts of project construction on local production and livelihood. According to the analysis on each villager’s group, the permanent land acquisition shall affect 6 villages (residential committees). Cultivated land of 55.87mu shall be acquired for the project permanently. For the 4 villages who are in need of economic rehabilitation, the per capita cultivated land is 0.58mu and the per capita residual cultivated land is 0.578mu after land acquisition by the project (the percentage of land acquisition is 0.34%). Among the 8 affected villagers’ groups, 7 villagers’ groups have their land of less than 10% occupied. The incomes of relocates in the project area mainly source from the non-agricultural incomes (the agricultural income of each household is RMB 3865 yuan, accounting for 24.19% of the total incomes or RMB 15,975 yuan). Therefore, the project construction won’t produce destructive destroy on the original production and living system of relocates, for the whole project area, its impact is only partly, and won’t bring big impacts on the production and living of people as well as social and economic development. For the details, see Chapter 5.

The project is distributed in linear shape along Lujiang river and most areas often suffer from flood and waterlogging disasters, which restrict the development of local economy, the project construction has provided a chance for reconstruction of production system and social system for resettlers. After completion of the project, the capability of flood control and emergency service along the new dike is greatly improved, and the disastrous degree of flood will be reduced, so as to provide a better environment that safeguard peoples’ lives and properties. At the same time, the circulation of the agricultural products and byproducts will be accelerated, and the development of local agricultural production will be improved. In addition, in combination with the RP implementation such as adjustment of agricultural planting structure and improvement of irrigation and water conservancy as well as reclamation of cultivated land, full exploitation of land resources potential is also a vital element of the protective policies on cultivated land used for land occupation of project construction to execute the land management law. According to the compensation system for cultivated land occupation, and the principle of "Land Quantity of the reclaimed should be Equivalent to that occupied for construction", the compensation will be made to the lost cultivated land so as to reach the balance of occupation and compensation, and by RP the resettlers will be relocated in the areas with considerably superior natural and traffic conditions, and social environment. Additionally, the preference and support will be given to the resettlers in the aspects of policies, technologies, funds, and substances, so as to ensure that they will restore or reach the former level as soon as possible.

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3. Natural and Socio-Economic Conditions of the Project-Affected Areas

3.1 Natural Conditions of the Project-Affected Areas 1) Topographical and Geological Conditions Xiangtan City is located at the middle to the east of Hunan Province, and the middle and lower reaches of Xiangjiang River. The east-west width is 180 kilometers and the south-north length is 81 kilometers. It borders on City, Wangcheng City, and Changsha City northwards, marches with Zhuzhou urban area and Zhuzhou City eastwards, closes to Hengdong City, Hengshan City, and Shuangfeng City southwards, and connects with and westwards. The whole city is surrounded by hills, the middle part is flat, and the east and north parts are wide, the land within the city is of gentle fluctuation, and the general altitude is between 40~ 70 meters. In the form of “S”, Xiangjiang River flows across Xiangtan urban area, after that, it meets with and Juanshui River in the urban area.

The project are is situated on grade I and II terrace of Xiangjiang River and Lianshui River, accordingly, its topography is flat, and the mainly-distributed terrane is clay soil and sandy pebbles of fluvial outwash of the Quaternary System, with the thickness over 15m. The underlaid bedrock is the amaranth sandy conglomerate of the Upper Series of Cretaceous System (K2), with the tendency of N55°E, inclination of NW, and inclination angle of 10°, which is inclined to left bank to the upper reaches. The riverside bank slope is the alluvial and deposit silty clay, silt, silty sand, and sandy gravel of the Quaternary System. As its corrosion-resistance ability is poor, under long-term side and bottom erosion effect of river water, the toe will be easily emptied, therefore, destabilized bank and bank caving will be formed.

The district is located at the edge of Xiangtan basin in north-east direction, as no big fault passes across the district, it belongs to the stable area. According to 1:4,000,000 Regionalization Map for Acceleration of Earth Active Peak Value in China and Regionalization Map for Period of Earth Active Reflection Characteristics Chart in China, the acceleration of the earthquake peak value of this project area is less than 0.05g, the characteristics chart period of the earthquake reflection is 0.35s. And its corresponding basic earthquake intensity is less than VI degree.

2) Hydrologic and Meteorological Conditions Xiangjiang River is also called Xiangshui River, one of seven branches of Changjiang River. It is located between 24°31′~29°00′ N and 110°30′~114°00′ E, coming from Longmenjie of Haiyangping of Lingui City of Guangxi, flowing across Xing’an and Quanzhou of Guangxi, and lastly, enters into Hunan via Xiajiangwei of Dong’an City of Hunan. Via Pingdao of , it receives Xiaoshui River, afterwards, receives Chonglingshui River River at the Linghekou at the boundary of Changning and , then, it meets Zhengshui River and Leishui River in Hengyang City, next, receives River in Leixi City of Hengshan City, then, receives Lushui River in Lukou of Zhuzhou City, after that, receives Juanshui and Lianshui rivers in Xiangtan City, then, meets with River and in Changsha City, after that, receives Weishui River in Jinggang of Changsha City, lastly, fills into Dongting Lake when traveling to Haohekou in Xiangyin northwards. Rivers from rivers and lakes all contain into Changjiang River in Chenglingji via . The total length is 856km, and that in Hunan is 670km. the river basin is 9460km2, and that in Hunan is 90%. The river basin above Xiangtan is 81638km2.

The river basin of Xiangjiang River is situated at the south of Changjiang River as well as the north of Nan Ling, spreading all over east part of Hunan. It takes Mubu Mountain, Luoxiao Mountain, and Poyang Lake wit the boundary eastwards, faces Nan Ling southwards and takes Pearl River for part, takes Dongjiashan and Leigongling for interfluve with Zishui River westwards, and connects with Dongting Lake northwards. As for its landform, it is high in east, west, and south parts, while, flat and low in middle and north parts. The eastward Zhuzhou Mountain in the boundary of Hunan and Jiangxi is arranged in echelon form, and the mountain altitude is over 1000m generally, with Qixingling of Dawei Mountain as the highest one, with the altitude of 1608m; that of Nan Ling is above 1000m, that of the upstream Haiyang Mountain is 1981m, that of Danan Mountain in the boundary of Hunan and Guangxi is 2021m, that of Mangshan Mountain in the boundary of Hunan and Guangdong is 1902m; besides that of the west Dongjiashan is 1041m, that of rivers of Xiangjiang and Zishui divide is lower than 500m. the northeast-southwest tendecy of Hengshan Mountain is located in the middle of

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the basin, besides the altitude of Zhurongfeng Mountain is 1289m, others are below 500m; the north Dongting Lake is the flat alluvial plain, with the altitude below 50m mostly.

Xiangtan urban area is situated at the lower reaches of Xiangjiang River, which is characterized by mild climate, plentiful rainfall, long frost-free period, concentrated rain in spring and summer, dry autumn, long hot period, accordingly, it is of the continental climate. According to statistics from Xiangtan weather station, the annual average temperature is 17.3℃, January is of the lowest temperature within one year, with the annual average value of 4.8℃, July is of the highest temperature ,with the annual average value of 29.2℃, the extremely-highest temperature is 40.4℃(August 30, 1963), and the extremely-lowest temperature is -7.7℃ (February 1, 1990). The annual average air pressure is 1008.0hpa, annual average rainfall is 1317.2mm, the max. daily rainfall is 228.3 mm(June 16, 1994), and rainfall during March~ June covers above 55% of the whole year; and the max. rainfall is more than 2 times of the min. rainfall. The annual average evaporation is 1310.0mm, the annual average sunlight is 1620.7h, the annual average wind velocity is 2.3m/s, and the max. wind velocity is 20.0m/s.

3) Soil Characteristics The project area belongs to the low hilly relief, with the limestone and sandstone as the main part of the soil parent material, there are numerous soil types, which are scatteredly distributed. As it is located at the rubefication transition belt of the middle and subtropical belt, with the red loam as the main part, subacidity, which is suitable for production of numerous crops and fruit trees, especially, plantation of tea. The whole city is divided into paddy soil, red loam, Chao soil, black calcareous soil, red calcareous soil, firewood color soil, soil for vegetable garden, yellow soil, and brown soil, with 19 subvarieties, 60 soil categories, and 148 soil species in all.

The district is of mild climate and plentiful rainfall, which is suitable for plant growth. The plant resources are rich, and there are 876 species from evergreen broad-leaf, coniferous trees, and other plant resources. And, it has 98 sections, 92 shrubbery and tree genus and 514 kinds, 252 kinds of pasture, including 30 kinds of Gramineae, 9 kinds of Leguminosae, and 213 kinds from other species. The hills under the altitude of 400m, the main part of the plant is the even-green broad-leaf and coniferous forest, the artificial vegetation covers honeysuckle fruit, fir, pine, bamboo, white oak under the forest, Chinese loropetalum, clover, and ferns.

4) Mineral Resources There are 36 existing minerals within Xiangtan, and storage of 16 kinds has been made sure. Limestone, silicon samd, dolomite, plaster, steatite, calcspar, phosphate ore, and meerschaum are of large storages. Additionally, there also exists manganese, iron, quartz sand, potash feldspar, barytes, and other metallic minerals. Among above minerals, limestone silicon sand, manganese, plaster, and dolomite are of better development and utilization.

5) Tourist Resources Xiangtan is of abundant and unique tourist resources, there are more than 80 tourist resources in the city. Through the comprehensive appraisement, it is ranked No. 3 in Hunan Province, main human landscapes and natural sceneries are considered as the national and world class. Thereinto, former residence is famous throughout the world, and Zhaoshan scenic areas are the national scenic resorts. In addition, Dongtaishan forestry park and former residences of and also enjoy high reputation at home and abroad.

3.2 Socio-Economic Conditions in the Affected Areas of Project 3.2.1 Socio-Economic Conditions in the Affected Area 1) Urban Development and Planning Since Southern Song Dynasty, Xiangtan City is the location of the city seat, and the urban development could be tracked back to Ming Dynasty. In the fourth year of Wanli (Era Name) (1576), the perimeter of the city was 1332 Zhang (unit of length) (unit of ), and 6 city gates were set. From Qing Dynasty to the

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beginning of Republic of China, the development steps of Xiangtan was slow, in the later period of Republic of China, three urban planning were carried out successively, while, only a little part was achieved.

After foundation of the PRC, Xiangtan City was built in 1949. In 1980, Xiangtan City was under the direct jurisdiction of the province, in 1983, the local part and city was consolidated and the city was under the jurisdiction of the city. In 1985, the fifth revision of the general urban planning was carried out, which was approved by the People’s Government in 1991. In 1997, the fifth adjustment of the general urban planning was conducted again.

2) Social-Economic Conditions With , , Xiangtan City, City, and Shaoshan City under its jurisdiction, the total land area of Xiangtan City is 5015km2. By the end of 2012, the total population was 3.26 million, GDP reached 26230 million yuan, and GDP per capita was 9329yuan/person.

Xiangtan urban area covers Yuhu and Yuetang districts, with 2 towns, 8 townships, 20 sub-districts in all; by the end of 2012, the total population was 0.7642 million, including the non-agricultural population of 0.5643 million. The land area was 281km2, the as-built urban area was 40 km2, GDP was 16047 million yuan, and GDP per capita was 20,998yuan/person.

Social-Economic Indices of Xiangtan City in Recent Years Table 3.2-1 Population at the End of the Year GDP GDP Per Capita Year Remarks （10,000 （10,000 yuan） （yuan/person） persons） 2010 74.93 1573065 20993

2011 75.67 1588796 20996

2012 76.42 1604684 20998

3) Social-economic Development Plan Based on scales determined in “Tenth Five-Year” Plan of Xiangtan City National and Social Development and Perspective Object Outline of 2010,“The Fifth Revision of General Urban Planning of Xiangtan” approved by Hunan Province People’s Government on September 5, 1991, and The Fifth Adjustment of General Urban Planning of Xiangtan City (1997.8), the urban population in 2010 is determined as 0.85 million, including 0.785 million persons in the urban area, in addition, the urban construction land is to be 85.0km2, including the urban area of 78.4km2.

3.2.2 Socio-Economic Conditions in the Affected Area 1) Yuhu District In 2011, Yuhu District of Xiangtan City realized the gross value of production of 18340 million yuan, calculating in comparable price, increasing by 12.6% compared with last year, which was 2.1% higher than the average provincial level. Viewing from three industries, the increase value for the primary industry was 174 million yuan with an increase of 5.0%; that of the secondary industry was 850 million yuan with an increase of 13.2%; that of the tertiary industry was 946 million yuan with an increase of 14.2%, and structure of primary, secondary and tertiary industries was 8.9:43.1:48. additionally, the industrialization, industrialized operation of agriculture, and urbanization process has been quickened. The industry has kept a rapid increase, the added value of all industries in the district is 734 million yuan, up 12.6% over the same period last year, industrialized operation of agriculture process has also been increased stably, industrialized operation of agriculture leading enterprise, with Hengdun Kitchen Utensils as the representative, has realized the output value of 83.26 million yuan, up 21.5% over the same period last year. The urbanization process is accelerated, and the urbanization level is improved gradually. According to the sampling investigation and statistics, in 2003, the disposable income per

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capita for the urban residents was 8512yuan, up 10% over the same period last year., and the disposable income per capita for rural residents was 4564yuan, up 9.1% over the same period last year.

By the end of 2011, the total population of the whole district was 0.3845 million, including the male of 0.1965 million and female of 0.188 million, with the sex ratio of 104.5:100. Among all population, the non-agricultural population is 0.3531 million, and the agricultural population is 31400. the birth within the year is 3641 persons, with the population birth rate of 9.6‰; natural growth rate of population is 3.5‰, rate of planned birth within the year is 99.3%, and the newborn child sex ratio is 103.85:100(male: female).

2) Yuetang District The total area of Yuetang District is 206 square kilometers, including the cultivated land of 47000mu; total population is 0.3511 million, including urban population of 0.2545million. There are 4 townships, 2 towns, 1 yard, 1 provincial development zone, and 9 sub-districts under its jurisdiction. In 2011, GDP of 1720 million yuan was completed in the district, increasing by 14.2% compared with last year, total financial revenues of 151 million yuan were completed, increasing by 23.5% compared with last year. Thereinto, the agricultural output value of the district was 286 million yuan, increasing by 6.2% compared with last year, the disposable income per capita for rural residents was 4814yuan, increasing by 5% compared with last year.

3.2.3 Socio-Economic Conditions of Townships (Sub-districts) and Villages in the Affected Areas of the Project

The land requisition will have certain influences on 2 townships (sub-districts), and 6 administrative villages (residential committees). In May of 2006, under the unified arrangement of the provincial PMO, Xiangtan City PMO organized Municipal Resettlement Office and the other relevant local department as well as resettlement design unit to carry out the detailed investigation on various aspects of basic socio-economic conditions and production as well as livelihood of project-affected town(ships) and sub-districts and village (residential committee).

1) Socio-Economic Conditions in the Affected Towns (Sub-district) According to the investigation, in the affected 2 townships (towns or sub-districts), there are 20 administrative village (residential committees), with 14777 households of 62957 rural residents, including, agricultural population of 29450 in 7012 households, accounting for 46.78% of the total population; There is an employed population of 39099, of which those undertaking agricultural production are 21389 persons, accounting for 54.7% of the employed population. The 2 townships (towns or sub-districts) have a cultivated land area of 20580mu(the paddy field of 16966mu), and cultivated land per capita was 0.7mu In 2005, the economic output value of the affected 2 townships (towns or sub-districts) were 284.9424 million yuan, of which, the agricultural incomes were 48.1023 million yuan, accounting for 16.88% only, and the incomes mainly source from the non-agricultural incomes.

For basic conditions of the affected townships (towns or sub-districts) of the project in details, see Table 3.2-1.

2) Basic Conditions in the Affected Villages (Residential Committees) The project impact involves 6 administrative villages (residential committees), with 20250 persons in all, including an agricultural population of 11041 accounting for 54.52% of the total population; The current cultivated land area is 6661.82mu, including paddy field of 5286.03mu, dry land of 1291.1mu, and commercial vegetable plot of 84.74mu, and the per capita cultivated land for agricultural population is 0.6mu.

According to the investigation, the income per capita of the 6 administrative villages (residential committees) is over 2700yuan//year. In 2005, the average income per capita of the affected villages (residential committees) was 3100yuan/year. There are 11 minority persons in the 17 administrative villages (residential committees) totally, accounting for 0.05% of total population, and all of them come from Tujia Nationality. In addition, these villages (residential committees) also have poverty- stricken and disabled families and deformities and aged people’s families that live alone, accounting for 1% of the total population.

For the basic conditions of the affected villages in the project, see Table 3.2-2.

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Socio-Economic Conditions of the Affected Townships, Towns (or Sub-districts) by Xiangtan City Urban Flood Control Project Table 3.2-1

Indices Unit Total Dongping Dongshan

I Basic conditions

(I) Number of Villages or (Residential) committes Piece 20 12 8

1. Villages with electricity Piece 20 12 8

2. Villages with postal communication Piece 20 12 8

3. Villages with telephone Piece 20 12 8

4. Villages with highways Piece 20 12 8

5. Villages with water supply Piece 20 12 8

(II) Households in villages Household 14777 6596 8181

1. Non-agricultural households Household 7765 6125 1640

2. Agricultural households Household 7012 471 6541

(III) Population in Villages and Townships Person 62957 29253 33704

1. Non-agricultural population Person 33507 27275 6232

2. Agricultural population Person 29450 1978 27472

(IV) Labor forces in villages Person 46415 21762 24653

(V) Employed population in villages Person 39099 17174 21925

1. Employed population in Agriculture Person 21389 1643 19746

2. Employed population in Industry Person 5887 5470 417

3. Employed population in architecture Person 3704 3480 224

4. Employed population in Traffic, storage and post Person 1981 1568 413

5. Employed population in wholesale and retail Person 2499 1932 567

6. Employed population in accomodation and dining industry Person 1757 1550 207

7. Others Person 1882 1531 351

II Agricultural production conditions

(I) Cultivated area mu 20580 837 19743

1. Paddy Field mu 16966 612 16354

2. Dry Farmland mu 3376 200 3176

3. Commercial Vegetable Plot 238 25 213

32

Socio-Economic Conditions of the Affected Townships, Towns (or Sub-districts) by Xiangtan City Urban Flood Control Project Table 3.2-1

Indices Unit Total Dongping Dongshan (II) Per capita plantation area of agricultural population mu/person 0.7 0.42 0.72

III Economic conditions of countryside

(I) Total economic income CNY 104 28494.24 15009.72 13484.52

1.Agricultural income CNY 104 4810.23 156.61 4653.62

Including: plantation income CNY 104 3959.04 128.9 3830.14

Other agricultural incomes CNY 104 851.19 27.71 823.48

2.Forestry income CNY 104 453.01 275.96 177.05

3.Animal husbandry income CNY 104 549.22 400.99 148.23

4.Fishery income CNY 104 81.54 49.67 31.87

5.Industrial income CNY 104 10040.59 6131.55 3909.04

6. Architectural income CNY 104 6019.83 3760.05 2259.78

7.Transportation income CNY 104 1402.2 916.35 485.85

8.Catering and service income CNY 104 1745.74 1162.82 582.92

9. Service income CNY 104 1906 1236.58 669.42

10. Other income CNY 104 1485.88 919.14 566.74

（II）Income per capita CNY 4525.98 5131 4000.87

33

Basic Conditions of the Affected Villages (Residential Committees) by Xiangtan City Urban Flood Control Project

Table 3.2-2 Farmland Population (Person) Farmland Area (mu) Ethnic Group Vulnerable Group Per Capita Town for the Income Per Village (Residential (Sub-district Agricultura Dry Commercia Agricultura Capita Committee) Non-agricultura Paddy Populatio Percen Populatio Percen ) Total l Total Farmlan l Vegetable l （Yuan/Year） l Population Field n (Person) t (%) n (Person) t (%) Population d Plot Population （mu） 2025 6661.8 5286.0 2 6 11041 9209 1291.1 84.74 0.6 3100 11 0.05 202 1 0 2 3 Dongping 2 8909 8909 210.04 63 62.3 84.74 3165 30 0.34 Sub-district Hengjie Residential 5400 5400 59.24 18 24.5 16.74 3280 4 0.07 Community Wanfu Residential 3509 3509 150.8 45 37.8 68 2987 26 0.74 Community Dongshan 1134 6451.7 5223.0 4 11041 300 1228.8 0.58 3051 11 0.37 172 1.52 Sub-district 1 8 3 1263.6 1008.6 Zhangjiang Village 2435 2189 246 255 0.58 3154 33 1.36 9 9 Tazi Village 3169 3145 24 1801 1427 374 0.57 2798 66 2.08

Dongshan Village 2752 2741 11 1674.7 1389.7 285 0.61 3190 41 1.49 Chengzhong 1712.3 1397.6 2985 2966 19 314.75 0.58 3025 11 0.37 32 1.07 Village 9 4

34 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

3.3 Basic Conditions of Relocatees 3.3.1 Investigation Objectives 1) Introducing the positive significance of urban flood control project to the relocatees; 2) Investigating and comprehending the affected degree of the relocatees; 3) Soliciting opinions from the relocatees to reflect their willingness in the schedules of rehabilitation for production and livelihood 4) Analyzing the economic incomes and expenditures, determining the economic development objective and providing accurate basis for resettlement planning; 5) Establishing economic incomes model for relocatee’s families; and analyzing and forecasting changes of economic incomes.

3.3.2 Investigation Content The socio-economic investigation is classified into two kinds: one kind is investigation on the basic social and economic conditions of affected households; the other is investigation on the attitudes of the relocatees towards resettlement.

1) Basic Conditions of Affected Households ① Basic Family Condition: includes family members, age, sex, educational level, employment, nationality, housing area and structure. ② Household Properties: The means of livelihood consist of big furniture, color (black and white) TV, refrigerator, washing machine, VCD, air conditioner, water heater, electric fan, electric cooker, motorcycle, bicycle, telephone, etc; While the means of production comprise land, water surface, household industrial and subsidiary production as well as production machinery such as tractor, thresher, grinder, water pump, livestock for cultivation, agricultural tricycle, automobile, motorcycle and barge. ③ Agricultural production conditions and income levels: The contracted land comprises cultivated land, garden plot, woodland and lands for other usage; The yield of agricultural products consist of grain yield, other crops’ yield and grain possession; The household incomes include incomes from plantation, animal husbandry and other non-agriculture; The household expenditures include expenditures for living, interpersonal communication, education, agricultural costs, taxes and others; The annual net income per capita of households.

2) Investigation on relocatees’ willingness The investigation on relocatees’ willingness mainly consists of the awareness on the project, channels to comprehend the project, attitude, expected production and resettlement modes in addition to the other most concerned problems.

3.3.3 Investigation Method and Procedure In May, 2006, the resettlement survey team, under the cooperation of the governments at all levels in the project area, conducted a detailed survey on the basic social economic conditions of the affected households and the relocatees’ willingness.

1) Investigation on the Basic Conditions of Affected Households For the investigation on the basic conditions of affected households, a sampling survey in site was made to the affected households. After filling the questions of survey form, the affected households made signature for confirmation. 83 households within the affected area of the project were selected as the sample, accounting for 49.7% of the total affected households. The samples cover all the areas (excluding the affected scope by temporary land use) affected by the project and all the samples are representative and typical, and can be used for basis for the project impact analysis. For the detailed sample survey distribution of removed households, see Table 3.4-1.

35 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Analysis of the Sampling Investigation on the Affected Households due to the Project Land Acquisition and Relocation

Table 3.4-1 Total Affected Affected Villages Sample Household Township（Sub-district） (Residential Households Sampling Percentage (%) （Household） Committees) （Household） 167 83 49.7 Dongshan 54 27 50 Zhangjiang Village 7 2 28.57 Tazi Village 16 9 56.25 Dongshan Village 22 13 59.09 Chengzhong Village 9 3 33.33 Dongping Town 113 56 49.56 Hengjie Residential 76 35 46.05 Committee Wanfu Residential 37 21 56.76 Committee

2) Investigation on relocatees’ willingness and attitudes Investigation on relocatees’ willingness adopts the mode of sample survey with a sampling ratio of 16.8%. The resettlement planning team prepared a survey form. The different levels of governments organize people to distribute survey forms in the project areas and ask affected people to fill up. In the affected area of the project, there are 86 survey forms issued to the relocatees, and 78 effective forms returned with an effective ratio of 90.7%.

3.3.4 Investigation Results and Analysis 1) Investigation on the Basic Conditions of Removed Households The sample survey and analysis shows that: ① Household Size of the affected households: 3.25 persons / family in average in the affected area of the project, including 2.06 persons for labor forces with age 17~60, 0.72 person of younger than 17 years old and 0.47 person of older than 60 years old. ② Gender Percentage: The male/female ratio in the project area is 1:0.95. ③ Age makeup: The labour forces at age of 17~60 possess 63.38% of the total population, 22.35% for younger than 17 years old and 14.47% for older than 60 years old. ④ Ethnic Background: Relocatees within the project protected area are all Han nationality. ⑤ Educational level: In the affected area of the project, every 100 persons, there are 23 persons with educational level of higher than senior middle school, 19 persons with educational level of senior middle school, 42 persons with educational level of junior middle school, 9 persons with primary school and 7 illiteracies or half-illiteracies. ⑥ Housing area per capita: The housing area for every household is 130.61m2 and that per capita is 40.15m2. The structures of houses are mainly brick-concrete and brick wood structure. ⑦ The land contracted by the collective: In countryside, each household contracts 2.17mu of cultivated land, averaging 0.65 mu per capita; The grain yield of each household is 1003.34kg in average 297.97kg per person. The livestock per household is 4.96 and the poultry is 12.01. ⑧Family property: For every 100 households, there are 109 TVs (32 for Black and White TV and 77 for Colour TV), 323 electric fans, 75 refrigerators, 86 washing machines, 146 bicycles, 47 motorcycles, as well as 332

36 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

pieces of big furniture such as sofas, big bureaus and chest of drawers. ⑨ Economic incomes and expenditure: Each household has an annual total income of RMB 15975yuan, averaging RMB 4915yuan per capita; Each household has an annual total expenditures of RMB13815 yuan, the annual expenditure per capita is RMB 4251yuan; Each household has an annual net income of RMB13020 yuan, averaging RMB 4006 yuan per capita.

For the total basic conditions of the affected households by the project, see Table 3.4-2.

37 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Summary for the Basic Conditions of Each Affected Household of Xiangtan City Urban Flood Control Project Table 3.4-2

Total of Samples Dongping Sub-district Dongshan Sub-district Items Unit Indices per Indices per Indices per Total household Total household Total household I Affected household size 1.Sample household Houseohold 83 56 27 2.Total Population of Household Person 270 3.25 171 3.05 99 3.67 Including: female Person 131 1.58 84 1.50 47 1.74 3.Labor forces of 17~60 years old Person 171 2.06 109 1.95 62 2.30 4.Population younger than 17 Person 60 0.72 40 0.71 20 0.74 5.Population older than 60 Person 39 0.47 22 0.39 17 0.63 II Educational level 1.Sample number Houseohold 83 56 27 2.More than senior high school Person 63 0.76 43 0.77 20 0.74 3.Senior high school Person 51 0.61 39 0.70 12 0.44 4.Junior high school Person 114 1.37 64 1.14 50 1.85 5.Primary school Person 23 0.28 15 0.27 8 0.30 6.Non-educated Person 19 0.23 10 0.18 9 0.33 IV. Nationalities 1.Sample household Houseohold 83 56 27 2.Han Nationality Person 270 3.36 171 3.05 99 3.67 3. Ethnic Group Person V. Housing area 1.Sample number Houseohold 83 56 27

2.Housing area per 2 household m 10840.6 130.61 8077.44 144.24 2763.18 102.34 3.Housing area per 2 capita m 10840.6 40.15 8077.44 47.24 2763.18 27.91 VI. Agricultural production 1.Sample household Houseohold 83 56 27 2. Sample population Person 270 171 99 3.Contracted plantation area per household mu 173.07 2.17 107.73 1.92 65.34 2.42 4.Plantation area per capita mu/person 173.07 0.65 107.73 0.63 65.34 0.66 5.Grain yield kg 79952.9 1003.34 49767.8 888.71 30185.1 1118 6.Grain occupation per capita kg/person 79952.9 297.97 49767.8 291.04 30185.1 304.9 7.Livestock Piece 375.72 4.96 208.32 3.72 167.4 6.2 8.Poultry Piece 810.96 12.01 314.16 5.61 496.8 18.4

38 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Summary for the Basic Conditions of Each Affected Household of Xiangtan City Urban Flood Control Project Table 3.4-2

Total of Samples Dongping Sub-district Dongshan Sub-district Items Unit Indices per Indices per Indices per Total household Total household Total household VII. Household property 1.Sample household Houseohold 83 56 27 2.TV Set 92 1.09 63 1.12 29 1.06 Including: color TV Set 65 0.77 46 0.83 19 0.71 3.Electric Fan Set 267 3.23 179 3.2 88 3.26 4.Refrigerator Set 63 0.75 44 0.78 19 0.71 5.Washing machine Set 72 0.86 50 0.89 22 0.83 6.Bicycle Piece 121 1.46 80 1.42 41 1.5 7.Motorcycle Piece 38 0.47 24 0.43 14 0.51 8.Large furniture Piece 272 3.32 179 3.2 93 3.44 VIII. Annual total revenues and expenditures 1.Sample household Household 83 56 27 2.Annual total incomes yuan 1335640 15975 913360 16310 422280 15640 2.1 Agricultural incomes yuan 296000 3865 168560 3010 127440 4720 2.2 Stockbreeding income yuan 214390 2735 128800 2300 85590 3170 2.3 Non-agricultural yuan 825250 9375 616000 11000 209250 7750 income 3.Annual consumption yuan 1153750 13815 787360 14060 366390 13570 expenditure 3.1 Living expenditure yuan 636990 7575 440160 7860 196830 7290 3.2 Production expenditure yuan 243670 2955 162400 2900 81270 3010 3.3 Other expenditures yuan 273090 3285 184800 3300 88290 3270 4.Annual household yuan 1091970 13020 750960 13410 341010 12630 income

2) Basic Attitude of Affected People The sample survey and analysis shows that: ① Have knowledge with the project: 91.28%of the affected people claimed that they had knowledge of the project and 8.72% of them have no knowledge about it. ② Sources of information: 85.64%of the affected people get known from the investigation persons and 14.36% from the residents of the neighboring villages. ③ Support attitude: All affected people hold an attitude of supporting to the project. ④Views on Impact: 93.45% of the affected people think the flood control benefit is obvious, and by the way of the reasonable compensation, the negative impacts can be alleviated;6.55% think the flood control benefit is obvious, while the negative impacts are big. ⑤Resettlement Approach: as the land to be acquired is mainly located in Xiangtan urban area and belt in the

39 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

middle of the urban area and township, 10.27% resettlers hope the government will arrange the housing plot unitedly and concentrated resettlement, and 89.73% resettlers hope for the cash compensation. ⑥ Economic rehabilitation: 12.38% of the affected people ask for cash compensation, and 87.62% ask for compensation through land adjustment.

3.4 Social and Economic Effects for Resettlement to the Affected Population The project implementation produced a certain impact on socio-economic factor:

1). Since establishment of Xiangtan City, it is of rapid development, moreover, the adjustment of structures of three industries are obvious, especially the rapid rise of the township enterprises, which has driven flourish development of the secondary and tertiary industries, and supported “most land” of the urban economy as well. The affected 2 town (sub-districts) by the project permanent land acquisition are all located in the urban area of Xiangtan City, and it is of superior geographical position and better infrastructures. Local farmers have many non-agricultural production opportunities, such as, employment, working, and business, numerous rural surplus labors have changed to the secondary and tertiary industries or the individual business, so as to shake off rely on the land gradually. According to the investigation, in 2005, the project area include 14347 labors in 6 villages, with 6353 persons undertaking industry, building industry, transportation, and retail (wholesale), accounting for 44.28% of rural labors. Viewing from revenue structures, in 2005, total revenues per capita of affected households in the project area were 15975yuan, including the agricultural revenues of 3865yuan, accounting for 24.19% of total revenues. The investigation shows that in spite of the land loss, the local farmers suffered the decrease of agricultural incomes, however, due to the small proportion for plantation in the total incomes, they have little impacts on their production and living.

2). For farmers with land plantation as their main livelihood resources, the land loss resulted in the loss of complete or partial means of production, however, as the project is linearly distributed along the Lujiang River, the land acquisition of the project will result in not big influence on the agricultural production of resettlers, on average, each affected village will lose 1.1% of their land. For 4 affected village group, all of them lose less than 8.24% of their land holding. However, for those households directly affected by land acquisition (54households and 228 persons), every affected people lose about 60.71% of their land holding.

Based on the site survey and acquaintance after land acquisition, among affected 8 groups in 4 villages, cultivated land occupation proportion of 1 village is between 10%~20%, and that of other 7 groups is lower than 10%.In addition, in the affected villages the agricultural resettlement mode of farmland adjustment will be adopted, which will maintain the traditional production mode and livelihood for the affected peoples, and can restore, or even increase their income or living standard within short period of time. The cash compensation mode can also be directly adopted, so the farmers can invest the land compensation costs into various farm or nonfarm activities, such as adjusting planting structure, developing greenhouse vegetables, expanding animal husbandry and engaging in other nonfarm activities, which increases their incomes and improve their current economic status. Therefore, the land occupation will produce little impacts on their production and livelihood.

3). For relocated households, the process of moving and decorating new houses consumed certain manpower and material resources for the affected households, which need to be considered by the project sponsors. The PMO, according to the relevant policies, make compensation to their loss of moving and traffic costs, on site infrastructure costs for the new housing plots, and necessary transfer allowance during relocation and rehabilitation. In addition, the PMO and the local village committees provided necessary assistance in the process. Therefore, the impacts from the project will be reduced to the minimum.

4). For the relocated enterprises and institutions, relocation needs a period of time or a certain procedure to identify new spaces, which will affect normal operation for a period of time and result in the loss of operation incomes for them. According to the investigation, According to the investigation, as for 7 enterprises and institutions in the project area, as only houses of employees or auxiliary production houses are impacted, their normal production and operation will not be impacted.

The project construction will bring a certain influences on the residents and businesses within the project area,

40 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

but the impact is little and after completion of the project, it creates favorable conditions for further development of Xiangtan City, and faXiangtantate the sustainable quick increase in economy.

41 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

4. Legal Framework and Policy

4.1Main Chinese Laws & Regulations and Policies for Resettlement 4.1.1 Policy Bases 4.1.1.1 National Laws and Regulations: 1. Land Administration Law of the People’s Republic of China. (The 8th Chairman Decree of PRC, issued on August 29,1998, starting implementation since January 1,1999)

2. Implementation Regulations for the Land Administration Law of the PRC. (The 256th State Council Decree of the PRC, issued on December 27,1998, starting since January 1,1999)

3. Urban Houses Demolition Administration Regulations of the PRC. (The 305th State Council Decree of the PRC, issued on June 13,2001, starting since November 1,2001)

4. Provisional Regulations on Cultivated Land Acquisition Tax of the PRC. (The GF [1987] NO.27 issued by the State Council: A Notice about Issuing by the State Council)

5. A Decision by the State Council about Deepening Reformation and Strictly Enforcing Land Administration (The GF [2004] NO.28 issued by the State Council on October 21,2004)

6. A Directive about Perfecting the Compensation Resettlement System for Land Requisition (The GTZF [2004] NO.238 issued on November 3,2004)

7. Land Acquisition and Resettlement Regulation for Large and Medium Water Resources and Hydo Project (The 471th State Council Decree of the PRC, issued on July 7, 2006.

4.1.1.2 Laws and Regulations of Hunan Province 1. Methods of Hunan Province for Implementing the Land Administration Law of the PRC. (Passed in the 14th Meeting of the 9th People’s Congress Standing Committee of Hunan Province on March 31,2000)

2. Methods of Hunan Province for Implementing the Urban Houses Demolition Administration Regulations of the PRC. (The 157th Decree issued by People’s Government of Hunan Province on July 12,2002, starting since September 1,2002)

3. Implementing Methods of the Cultivated Land Acquisition Tax of Hunan Province (Amendment) (Issued by the Hunan Province People’s Government on October 4,1987, and amended as the decision about amending Implementing Methods of the Cultivated Land Acquisition Tax of Hunan Province by Hunan Province People’s Government in May 4,1998)

4. A Notice about Improving “Basket Project”(XZF[1993]NO.25, issued by the Hunan Province People’s Government on November 6,1993)

5. A Notice by Hunan Provincial Commodity Price Bureau and Finance Department about Reissuing Administration Institutional Charging Items and Standards of Hunan Province National Land Resource System. (XJF [2003] NO.42)

6. Hunan Provincial Methods regarding Collection, Usage and Management of Rehabilitation Fee for Forest Vegetation (XCZ[2003]No.10)

7. A Notice by General Office of Hunan Provincial People’s Government about Issuing Land Requisition Annual Output Standards (XZF [2005] No. 47)

42 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

4.1.2 Relevant Laws and Regulations 4.1.2.1 National Laws and Regulations 1. Selected Provisions of Land Administration Law of the PRC Article 2: The State may, on the necessity of public interest, requisition land collectively owned in accordance with law. The State practises the system of paid-for use for state-owned land in accordance with law. However, appropriation of state-owned land use right by the State within the scope prescribed by law is excluded.

Article 10: Peasants' collectively-owned land that belongs to peasants' collective ownership of a village according to law shall be managed and administered by the village collective economic organization or villagers' committee; the land that belongs separately to more than two rural collective economic organizations and owned collectively by peasants shall be managed and administered by the respective rural collective economic organizations or villagers' teams; the land that belongs to township(town) peasants' collective ownership shall be managed and administered by the township(town) rural collective economic organization.

Article 14: Land collectively owned by peasants shall be contracted for management by members of the respective collective economic organization for cultivation, forestry, animal husbandry and fishery production. The duration of land contracting and management shall be 30 years. The contract issuing party and the contractor should conclude a contract agreeing on the rights and obligations of both parties. Peasants who contract management of the land have the obligation to protect and utilize the land pursuant to the agreement in the contract. Peasants' right to contract land for management is protected by law.

Within the duration of land contracting and management, in the event of appropriate adjustment of land contracted among individual contractors, it must have the consent of over two thirds of the members of the villagers' conference or over two thirds of the villagers' representatives, and be submitted to the competent department of agriculture administration of township/town People’s Government and People’s Government at the city level for approval.

Article 31: The State protects cultivated land and strictly controls turning cultivated land into non-cultivated land. The State practises the system of compensation for the occupation and use of land. For the occupation and use of cultivated land for non-agricultural construction with approval, the unit that occupies and uses cultivated land shall be responsible for the reclamation of cultivated land equivalent to the quantity and quality of cultivated land occupied and used in accordance with the principle of "quantity of reclaimed land being equivalent to that occupied". Where there are no conditions for reclamation or the reclaimed land does not conform to requirements, cultivated land reclamation fee should be paid as prescribed by the provinces, autonomous regions and municipalities directly under the Central Government, the special-purpose fund shall be used for the reclamation of new cultivated land.

Article 46: For land requisitioned by the State, local People’s Government at or above the city level shall, upon approval pursuant to legal procedures, make an announcement and organize its implementation. Owners and persons of the right to use of the requisitioned land should, within the specified time period of the announcement, bring the ownership certificates to the competent departments of the local People’s Governments to enter into registration for compensation for land requisition.

Article 47: For requisition of land, compensation shall be given in accordance with the original use of the requisitioned land.

Compensation fee for the cultivated land requisitioned includes land compensation fee, subsidies for resettlement as well as compensation fee for ground appendixes and young crops. Land compensation fee for the cultivated land requisitioned shall be 6-10 times of the average annual output value in the three years prior to requisition. Subsidies for resettlement for the cultivated land requisitioned shall be calculated on the basis of the agricultural population that requires resettlement. The agricultural population that requires resettlement shall be calculated on the basis of the amount of cultivated land requisitioned divided by the average occupancy of cultivated land of the unit requisitioned. The rate of subsidies for resettlement per head of the agricultural population that requires resettlement shall be 4-6 times of the average annual output value in the three years prior to requisition of the

43 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

said cultivated land. However, the maximum subsidies for resettlement for cultivated land requisitioned per hectare shall not exceed 15 times of the average annual output value in the three years prior to the requisition.

The rate of land compensation fee and subsidies for resettlement for the requisition of other lands shall be fixed by the provinces, autonomous regions and municipalities directly under the Central Government, taking the rate of land compensation fee and subsidies for resettlement for the requisition of cultivated land as reference.

Rate of compensation for ground appendixes and young crops on the requisitioned land shall be fixed by the provinces, autonomous regions and municipalities directly under the Central Government.

For requisition of suburban vegetable plots of municipalities, the land use unit should, pursuant to relevant provisions of the State, pay to the new vegetable plot development and construction fund.

Additional subsidies for resettlement may be provided for those peasants who require resettlement and cannot maintain their original living standards on the basis of land compensation fee and subsidies for resettlement the payment of which is effected pursuant to the provisions of the Second Paragraph of this Article subject to the approval of People’s Governments of the provinces, autonomous regions and municipalities directly under the Central Government. However, the total of land compensation fee and subsidies for resettlement shall not exceed 30 times of the average annual output value in the three years prior to requisition of the land.

The State Council may, in accordance with the level of social & economy development, increase the rate of land compensation fee and subsidies for resettlement under extraordinary circumstances.

Article 48: Upon determination of the scheme for compensation and resettlement for land requisition, the local People’s Government concerned should make an announcement and seek the views of the rural collective economic organization and peasants of the requisitioned land.

Article 49: The rural collective economic organization of the requisitioned land should publish the revenue and expenditure of the compensation fee of the requisitioned land for the members of the respective collective economic organization and accept supervision.

It is forbidden to embezzle or divert the land compensation fees and other related expenses.

Article 50: Local People’s Governments at all levels should provide support for rural collective economic organizations and peasants of the requisitioned land for development, management and establishment of enterprises.

Article 54: Use of state-owned land for a construction project should be obtained in the form of onerous use such as transfer. However, the following use of land for construction may be obtained in the form of appropriation subject to the approval of the People’s Government at or above the city level in accordance with law: (1) Land use by state organs and land use for military purposes; (2) Land use for urban infrastructure and land use for non-profit undertakings; (3) Land use for such infrastructure as energy, communications and water conservancy to which the state renders key support; (4) Other land uses prescribed by laws and administrative regulations.

Article 57: Construction of a construction project and geological survey that need to temporarily use state-owned land or land collectively owned by peasants, it should be subject to the approval of the competent department of land administration of the People’s Government above the city level. Among which, for temporary use of land within an urban planning zone, consent of the competent department of urban planning should be sought first prior to submission for approval. The land user should conclude a contract for the temporary use of the land with the competent department of land administration concerned or the rural collective economic organization and villagers' committee in accordance with the ownership of the land, and effect the payment of compensation fee for the temporary use of the land.

44 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

User of temporary use of the land should use the land according to the use agreed on in the contract for the temporary use of the land and shall not construct permanent constructions thereon. The duration of temporary use of land shall generally not exceed 2 years.

Article 62: One household of villagers in a rural area can only possess one housing plot, the area of which shall not exceed the standards prescribed by the provinces, autonomous regions and municipalities directly under the Central Government.

Construction of villagers' residences in the rural areas should conform to the overall planning for township/town land utilization, and the best possible use of original house sites and idle land in the village.

2. Selected Provisions Urban Houses Demolition Administration Regulations of the PRC Article 22: The relocater should provide compensation to the relocatee in accordance with this Regulations. For the relocation of the peccancy building and the temporary building over approval term, the relocater shall not provide compensation. But for the relocation of the temporary building within the approval term, the relocation should provide proper compensation.

Article 23: The ways of relocation compensation can be money compensation or property rights exchange of house. The relocatee can choose the way of relocation compensation.

Article 24: The amount of money compensation should be considered according to the position, use and building area of the removed house and shall be confirmed with evaluating price in the realty mart.

Article 25: For the way of property rights exchange of house, the relocater and the relocatee should calculate the compensation amount of removed house and the house price for exchange to balance the price difference of the property rights exchange according to the Article 24 of this Regulation.

The relocation of auxiliaries of non-public welfare houses shall not be solved with property rights exchange, but with money compensation by the relocater.

Article 28: The relocater should provide houses that accord with quality & safety standards of the State for resettlement.

Article 31: The relocater should pay relocation subsidies for the relocatee or the tenant. During the transition term, in case of that the relocatee or the tenant settles for himself/herself, the relocater should pay subsidies for temporary resettlement; in case of that the relocatee or the tenant uses the revolving house, the relocation shall not pay subsidies for temporary resettlement.

3. Selected Provisions of Provisional Regulations on Cultivated Land Acquisition Tax of the PRC Article 2: The cultivated land called in this Regulation refers to the land for planting crops or the land that had been used for planting crops within the 3 years prior to acquisition.

Article 3: All the units or individuals that acquire cultivated land for house building or for other non-agricultural construction, are the taxpayers of cultivated land acquisition tax (hereinafter called taxpayer), and should pay cultivated land acquisition tax according to this Regulations.

Article 4: The cultivated land acquisition tax shall be calculated according to the actual area of acquired land by taxpayer and shall be assessed upon as the specified amount in one time.

Article 5: The amount of cultivated land acquisition tax is controlled as follows: (1) Take city as one unit (same hereinafter). For the area where the average occupancy of cultivated land is under 1mu (including 1mu), the tax rate is 2-10 yuan/m2. (2) For the area where the average occupancy of cultivated land is 1-2mu (including 2mu), the tax rate is 1.6-8.0 yuan/m2.

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(3) For the area where the average occupancy of cultivated land is 2-3mu (including 3mu), the tax rate is 1.3-6.5 yuan/m2. (4) For the area where the average occupancy of cultivated land is over 3mu, the tax rate is1-5 yuan/m2.

Article 9: The cultivated land acquisition tax should be assessed upon by the finance organ. After approving the cultivated land acquisition of unit and individual, the land administration department should give notice to the finance organ of same level in time. The unit or individual that is approved to requisition or acquire the cultivated land should declare tax-paying to the finance organ with the approval documents by the land administration department above city level. The land administration department shall assign land acquisition according to the tax-paying receipt or the approvable documents of requisition.

4. Selected Provisions of the Decision by the State Council about Deepening Reformation and Strictly Enforcing Land Administration

(3) Strictly enforcing compensation system for land acquisition: The approved cultivated land acquired for the non-agricultural construction shall be compensated by the construction unit with the cultivated land of same quantity and quality. And the quantity and quality of cultivated land for supplement shall be converted according to its degree to prevent “more acquisition but fewer compensation, and compensation with bad cultivated land for cultivate land of high quality”. The construction unit --- which cannot compensate by itself ---- shall pay the cultivate land reclamation fee according to the provisions of each province, autonomous regions and municipalities directly under the Central Government. The cultivated land reclamation fee shall be administrated with special account, and cannot be reduced or remitted or peculated. The cultivate land supplement fee for construction project invested by the government must be list into the project general calculation.

(13) Properly resettling the farmers affected by land requisition: The local People’s Government above city level shall work out specific methods to ensure the further living of farmers affected by land requisition. The farmers affected by land requisition can use legally approved land for construction to buy a share of the projects with steady profit. For the inside of urban planning area, the local People’s Government shall list the farmers who will lose cultivated land because of land requisition, into urban employment system and set up system of social security; for the outside of urban planning area, during the process of land requisition, the local People’s Government shall, in its administration area, leave some cultivated land or arrange job for the farmers affected by land requisition; for the farmers, who will lose their cultivated land and basic conditions of production and living, the local People’s Government shall resettle them in other area. The department for labourer and social security shall, together with relevant departments, make a directive about employment training and social security as soon as possible.

(14) Perfecting land requisition procedure: During the process of land requisition, the farmers’ ownership of collectively-owned land and the farmers’ rights for land contracting and management shall be protected. Before report and approval, the farmers affected by land requisition shall be informed about the use, position, compensation standards, resettlement approaches of land to be requisitioned; and the investigation results about the present situation of land to be requisitioned must be confirmed by the rural collective economic organizations and the farmers affected by land requisition; and if necessary, the department of land and resources shall, according to relevant provisions, organize public hearing. The relevant data known and confirmed by the affected farmers by land requisition shall be part of necessary documents for approval of land requisition. The coordination and judgement system for compensation resettlement dispute shall be established and perfected as soon as possible to protect legal rights of the affected farmers by land requisition and the land user. Except the special cases, all the approved items for land requisition shall be publicized.

(15) Strengthening the supervision on implementation process of land requisition: Land can not be requisitioned by force, if the compensation resettlement for land requisition was not fulfilled. The People’s Governments of province, autonomous regions and municipalities directly under the Central Government, according to the principle ---- which states that the compensation fee for land requisition is used mainly for the affected farmers, shall work out the assignment methods of compensation fee for land requisition inside the rural collective economic organization. The rural collective economic organizations shall publicize the expenses and receipts, assignment of compensation fee for land requisition to its members and take its members’ supervision.

46 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

5. Selected Provisions of the Directive about Perfecting the System of Compensation Resettlement for Land Requisition

(4) Assignment of land compensation fee: The land compensation fee shall be reasonably assigned, according to the principle ---- which states that the compensation fee for land requisition is used mainly for the affected farmers, inside the rural collective economic organization. The detailed assignment methods shall be work out by provincial People’s Government. The land compensation fee for rural collectivity ---- whose land is totally requisitioned and whose economic organization is disbanded at the same time, shall fully used for the production and living resettlement of the affected farmers by land requisition.

(5) Resettlement of agricultural production: For the requisition of collectively-owned land outside the urban planning area, these kinds of land, such as rural collective non-planed land, contracted land handed back by contracting farmers, land for contracting transfer and land newly-added during land development and arrangement shall be used firstly as the necessary cultivated land for the affected farmers by land requisition in order to ensure their continuous agricultural productions.

(6) Resettlement by new employment: The land requisition unit or the local People’s Government shall try its best to provide the affected farmers with free labor skill training and arrange them with proper jobs. Under the same conditions, the land requisition unit shall employ the affected farmers first. During the requisition of collectively-owned land in the urban planning area, the local People’s Government shall list the farmers who will lose cultivated land because of land requisition, into urban employment system, and set up system of social security.

(9) Information of land requisition: Before reporting for approval, the local department of land and resources shall in written form inform the farmers and rural collective economic organization affected by land requisition, about the use, position, compensation standards, and resettlement ways of land to be requisitioned. All the attachments or young crops ----which are newly planted or built after informing by the farmers or rural collective economic organization affected by land requisition, shall not be compensated in requisition.

(10) Confirming of land requisition investigation results: The local department of land and resources shall investigate the ownership, kind, area of the land to be requisitioned and the ownership, kind, area of land attachments. And the investigation results shall be confirmed together with the farmers and rural collective economic organization affected by land requisition, and the property owner of land attachments.

(11) Organizing of evidentiary hearing for land requisition: Before reporting for approval, the local department of land and resources shall inform the farmers and rural collective economic organization affected by land requisition that they have the rights to apply evidentiary hearing of the compensation standard and resettlement approach of the land to be requisition. If there is party applying for evidentiary hearing, the evidentiary hearing shall be organized according to relevant procedures and requirements of the Provisions for Evidentiary Hearing of Land Resources.

(12) Publicizing of approval items for land requisition: For the land legally approved for requisition, the ministry of land and resources and its provincial department shall publicize the approval items by media, expect for the special cases referring to state secrets. The city (city) land and resources department shall publicize, according to the provisions of the proclaiming methods for land requisition, the approval items in the village or group affected by land requisition.

(13) Payment of compensation resettlement fee for land requisition: After the compensation resettlement plan is approved by city, city People’s Government, the compensation resettlement fee shall be paid for the rural collective economic organization within the legally stated period.

6. Land Acquisition and Resettlement Regulation for Large and Medium Water Resources and Hydro Project (The 471th State Council Decree of the PRC, issued on July 7, 2006).

Article 22: For large and medium size water resources and hydropower projects the combined land

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compensation and resettlement subsidy shall be set at 16 times of average annual output value in the past three years. If the land compensation and resettlement subsidy could not meet the needs of restoring income and livelihood for the resettlers, they could be raised further, which should be submitted by the project sponsor to and approved by the project approving authority.

For the compensation and resettlement subsidy for other acquired land areas, they should follow the relevant provincial regulations.

For the compensations on the attached trees, young crops, they should also follow the relevant provincial regulations.

For the affected houses and structures, they will be compensated based on their original scale, function and standards. If the compensation could not meet the needs of building houses for poor resettlers, additional compensation should be provided.

For the stated owned culticated land areas used by other units or individuals, the compensation will follow the compensation for land acquisition of cultivated land. For the state owned unutilized land areas used by units and individuals, no compensation will be provided.

After resettlement, the scattered trees and structures over flood line around reservoir that belong to resettlers should be compensated in line with Clause 3 and Clause 4 in this article.

4.1.2.2 Laws and Regulations of Hunan Province 1. Methods of Hunan Province for Implementing the Land Administration Law of the PRC Article 10: Where there are no conditions for reclamation or the reclaimed land does not conform to the requirements, the cultivated land reclamation fee should be paid to the land administration department of provincial People’s Government as the following standards when applying for turning agricultural land into other use.

After approval for acquisition of the basal farmland, the reclamation fee shall be 10-12 times of the average annual yield within the three years prior to acquisition. Among which of acquisition the vegetable land, the reclamation fee shall be 10-12 times of the average annual yield of adjacent paddy field within the three years prior to acquisition.

After approval for acquisition of the other cultivated land except for the basal farmland, the reclamation fee shall be 6-10 times of the average annual yield within the three years prior to acquisition.

The construction unit should list the cultivated land reclamation fee as construction cost into the general investment of the construction project. The land administration department of provincial People’s Government should save the cultivated land reclamation fee with special account according to the regulations of provincial People’s Government, organize reclamation as the planning and allocate enough reclamation fee to the unit that is responsible for the reclamation of cultivated land.

Article 18: Land compensation fee for the acquired land shall be paid in accordance with following standards. (1) The compensation fee for cultivated land (including paddy field, dry farmland and vegetable land), fishpond and lotus pond, shall be 6-10 times of the average annual yield of the land in the 3 years prior to acquisition. (2) The compensation fee for fruit garden, tea garden and economic forestland, shall be 50%-100% of the compensation standard of the adjacent paddy field, and the compensation fee for other forestland shall be 30%-50% of the compensation standard of the adjacent paddy field. (3) The compensation fee for grazing land shall be 30% of the compensation standard of the adjacent paddy field. (4) The compensation fee for the land used for public facilities or public enterprise of township /town /village and the rural housing plot of villagers, shall be equal to the compensation standard of the adjacent paddy field. (5) The compensation fee for fields on the hill, wasteland and other unused land, shall be 20% of the

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compensation standard of the adjacent paddy field.

Article 19: Resettlement subsidies for the acquisition land shall be paid in accordance with the Article 47 of the Land Administration Law. Resettlement subsidies for the acquisition of fishpond, lotus pond, fruit garden, tea garden and economic forest land shall be paid in accordance with the regulations for requisition of cultivated land. Resettlement subsidies for other forestland and grazing land shall be paid in accordance with 50% of the standard of the adjacent paddy field.

For the requisition of the land used for public facilities or public enterprise of township/town/village, the housing plot of villagers, and the land used for water conservancy, such as pond, channel, and dam, if it is necessary to rebuild, the resettlement subsidies shall be paid in accordance with the standards of rebuilding land; if unnecessary, the resettlement subsidies shall be paid appropriately.

Resettlement subsidies shall not be paid for the requisition of barren hill or wasteland.

Article 20: The compensation fee for the ground appendixes and young crops on the requisition land shall be paid in accordance with the following regulations.

(1) The compensation for the young crops whose growing period is under 1 year, shall be paid according to the output value of one season, for the young crops whose growing period is over 1 year shall be paid according to the output value of 1 year. The compensation fee for the young crops shall also be paid with the actual loss according to the growing period.

(2) The compensation for the forest trees that can be transplanted shall be paid transplanting fee together with actual loss. The forest trees that can’t be transplanted shall be evaluated and purchased, and the compensation for the forest trees that are lopped by the owner shall be paid with the actual loss.

(4) Houses as well as other building and structures on the requisitioned land can be removed as compensation or purchased with equivalent price, or be compensated with equivalent houses, other buildings and structures.

Article 32: One household of villagers in a rural area can only possess one housing plot, the area of which shall conform to the overall planning for land using of township/town. The cultivated land area of every household shall not exceed 130m2, the waste hill & land area shall not exceed 210 m2, and the other land area shall not exceed 180 m2.

2. Methods of Hunan Province for Implementing Urban Houses Demolition Administration Regulations (2002) Article 7: For rights, area, structure, use, etc of the removed house, it shall take the house ownership certificate as standards. For the item that is not given clear indication on the ownership certificate, it shall take the record of property right or other effective documents as standards. For the item that has been changed to other use, it shall take the approval documents by planning administration department and other relevant departments.

Article 16: In the case of exchanging the property rights of removed houses, it is necessary for the relocater to provide resettlement houses that have legal procedure and accord with the quality & safety standards of the State and achieve resettlement only one time. For the transitional resettlement due to special conditions, it is necessary to arrange revolving houses according to Article 20 of this Method after the agreement with relocatee and houses demolition administration department. During the transition period, the design of replacement houses can be changed when relocater reaches an agreement with relocatee.

Article 17: The relocatee or the tenant of public house who possesses too small house area (calculated including his other houses in same urban planning area) and is treated with the lowest living protection shall be arranged with replacement housing to ensure the lowest living level.

Article 18: In the case of exchanging the property rights of removed houses, the relocater should transact registration procedure of houses’ property rights for the relocatee in time.

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The departments and units for control of household, education, and medical treatment, should transact relevant procedures for the relocatee in time, such as household transferring, school transferring and medical treatment, in accordance with the resettlement certificate of house relocation that provided by relocatee.

Article 19: For the relocation of houses for production and management, the relocater should pay the relocation subsidies for the relocatee or the tenant. For the equipment that can’t be removed or renewed to use, the relocater should pay relevant compensation. The amount of compensation fee and subsidies for relocation shall be confirmed in accordance with the actual expense for teardown, conveyance and installation of the production equipment or with the actual value of the disused production equipment.

For the relocation of domicile, the relocater should pay the relocation subsidies for the relocatee or the tenant. In the case of resettlement of only one time, the relocater shall pay the relocation subsidies in one time; in the case of transitional resettlement, the relocater shall pay the relocation subsidies according to the relocation times, and the relocation subsidies shall be confirmed according to the actual requirement.

In the case of that the relocater takes charge of relocation, the relocater shall not pay the relocation subsidies.

Article 20: During the period of transitional resettlement, the relocater should pay the temporary resettlement subsidies for the relocatee or the tenant that arranges revolving for himself/herself. The amount of the temporary resettlement subsidies shall be confirmed in accordance with the rent for using the similar house with the removed house.

For the relocatee or the tenant that can’t arrange house for himself/herself, the relocater should arrange revolving house with the similar area to the removed house, but it is unnecessary for the relocater to pay the temporary resettlement subsidies. 3. Methods for Implementing Cultivated Land Acquisition Tax of Hunan Province (Amendment) Article 2: In the case of acquisition of the following land owned by the State and the collectivity for house building or non-agricultural construction, the unit or individual that acquires land should pay cultivated land acquisition tax in accordance with this Method.

(1)The paddy field and the dry farmland for planting crops, including cultivated land, newly cultivated land, rotation land and the land that had been used for planting crops in the 3 years prior to acquisition. (2)The land that is used mainly for planting crops and accidently for planting mulberry, tea tree, fruit tree and other forest trees, and the shoaly land that is used through reclaiming around. (3)Fishpond, lotus pond, vegetable land, garden plot (including seed plot, flower plot, drug plot, tea garden, fruit garden, mulberry garden and garden for planting other economic forest trees).

Article 3: The amount of cultivated land acquisition tax shall be calculated in accordance with the actual acquisition area of above land by the taxpayer and specified amount standard of acquisition tax, and shall be assessed upon in only one time.

Article 4: It shall take the average occupancy per head of cultivated land as its main bases of the amount standard of cultivated land acquisition tax, and the amount standard shall be determined according to the natural conditions and the economic development of each area. With the unit of city (including city-level city, same hereinafter), the average occupancy per head of cultivated land shall be calculated in accordance with the gross of population and cultivated land that are counted by local statistical department. The specific amount standards of acquisition tax are regulated as follows.

(1)Take the city as the unit (same hereinafter). For the area where the average occupancy per head of cultivated land is under 0.5mu (including 0.5mu), the amount standard of acquisition tax is 6-10 yuan/m2. (2) For the area where the average occupancy per head of cultivated land is 0.5-1.0mu (including 1.0 mu), the amount standard of acquisition tax is 4-8 yuan/m2. (3) For the area where the average occupancy per head of cultivated land is over 1.0mu, the amount standard of acquisition tax is 3-7 yuan/m2. (4) For the acquisition of special vegetable land and fishpond for house building or other non-agricultural

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construction, the amount standard of acquisition tax is 10 yuan/m2.

4. A Notice by Hunan Provincial Commodity Price Bureau and Finance Department about Reissuing Administration Institutional Charging Items and Standards of Hunan Province National Land Resource System

The degree area of Xiangtan City is the first class. The detailed standards for reclamation fee of cultivated land are listed as follows. 1) Paddy Field: 12000 yuan/mu; 2) Dry Farmland: 8000 yuan/mu.

5. Hunan Provincial Methods regarding Collection, Usage and Management of Rehabilitation Fee for Forest Vegetation (XCZ [2003] No.10)

Article 6: The expropriation standards of forest vegetation rehabilitation fee shall be determined according to the survey and design cost and the forestation and cultivation cost, which are needed for rehabilitating forest vegetation. And the rehabilitation area shall not be less than the forestland area in acquired or requisitioned land. The detailed expropriation standards are as follows:

1) For timber forest, economic forest, firewood forest and nursery land, it is 6 yuan/m2; 2) For immature forest, it is 4 yuan/m2; 3) For protection forest, it is 8 yuan/m2, while for forest with special purposes, it is 10 yuan/m2; 4) For open woodland and shrub land, it is 3 yuan/m2. 5) For suitable land for forest, clear cut area, burned land, it is 2 yuan/m2;

The forest land in city or in urban planning area, it can be charged according to 2 times of the standards above. For the forest land which is occupied by farmers for housing construction, no rehabilitation fee shall be charged during the period of the 10th 5-year plan.

Unless otherwise express provisions, no unit or individual has the rights to reduce or remit the rehabilitation fee.

6. A Notice by General Office of Hunan Provincial People’s Government about Issuing Land Requisition Annual Output Standards (XZB [2005] No. 47)

The land requisition annual output standards in Xiangtan City: 1) Paddy Field of Class I: 1800 yuan/mu; Paddy Field of Class II: 1600 yuan/mu; 2) Dry Farmland: 1200 yuan/mu

4.2 Relevant Articles of the ADB 4.2.1 Policy Bases (1) Reluctant Resettlement Policy of the ADB (issued in November, 1995) and Resettlement Handbook of the ADB ---Doable Practice Direction (issued in 1998) (2) Policy about national minorities of the ADB (3) Policy about poor supporting of the ADB

4.2.2 Relevant Policies and Regulations The Resettlement Policy of the ADB includes the principles as follows. (1) Involuntary resettlement should be avoided where feasible. (2) Where population displacement is unavoidable, it should be minimized by exploring all viable project options. (3) People unavoidably displaced should be compensated and assisted, so that their economic and social future would be generally as favorable as it would have been in the absence of the project. (4) People affected should be informed fully and consulted on resettlement and compensation options. (5) Existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible, and resettlers should be integrated economically and socially into host communities. (6) The absence of a formal legal title to land by some affected groups should not be a bar to compensation;

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particular attention should be paid to households headed by women and other vulnerable groups, such as indigenous peoples and ethnic minorities, and appropriate assistance provided to help them improve their status. (7) As far as possible, involuntary resettlement should be conceived and executed as a part of the project. (8) ADB policy requirements pay special emphasis on extreme poor families, women headed families, and other vulnerable social groups. These vulnerable groups should be provided special assistance so that their current status could be improved.

4.3 Compensation Standards for Project 4.3.1 Compensation Qualification All the owners and users of the buildings and land in the area of project land acquisition demolition get reasonable compensation or help.

City Demolition Office will issue Houses Demolition Proclamation and publicizes the relocaters, relocated areas and demolition time limit, etc. within 3 days after issuing Houses Demolition and Relocation License; and notifies the relative departments in written form to stop processing the following procedures within the relocated areas in relocation time limit.

1) Release the procedures of business license using demolished house as business place. 2) The procedures of trade, exchange, division, donation, transfer and mortgage, etc. of the demolished house, excepting the effective judgements and procedures executed for adjudication issued by People’s Court or arbitration institutions. 3) Examination and approval procedures of new-building, expansion, rebuilding and character changing of houses or auxiliaries.

In this project, the cut-off date regulated by the government is considered as the date of finally determining that it is in accordance with the compensation conditions. People affected by the project include those who lose land and house due to the project construction. The compensation or rehabilitation are processed according to their loss type and quantity, and whether the loss is within the final construction drawing finished within the time limit regulated by the government; or treated as being temporarily affected in the construction period. After the cut-off date, the newly developed cultivated land, built houses or moved in persons in the project affected area are not meet the compensation or subsidy conditions.

4.3.2 Principles of Compensation Rehabilitation House removal and compensation is an important task governed by relevant policies and the the range covered by this task is wide. The task is closely related with the benefits of the relocates. Based on the requirements of laws and rules by Chinese Government and ADB, the compensation, rights and interestes involved in the project are as follows:

1) The RAP should be based on the social and economic survey and the statistics of the physical indices surveyed in the affected project area. It should also conform to the current national and local land acquisition laws and policies and policy of involuntary resettlement established by ADB.

2) The engineering design should be optimized in order to protect the land and minimize the impact by the land acquisition and resettlement. To minimize the number of involuntary relocatees, the project should avoid the areas with high population density and multi-storied buildings as much as possible. Better construction methods and other measures should be taken to reduce the disturbance to people.

3) All the compensations and resettlements for the involuntary relocatees should be a part of the project. In order to benefit the relocatee, sufficient funds should be available to them.

4) It should be ensured that all the affected peoples’ loss caused by the project would be compensated before the remove. Reasonable resettlement and effective rehabilitation should be conducted and provide assistance for their temporary difficulties during transfer.

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5) It should be ensure that, after the resettlement, the living conditions, productivity and income level of all affected peoples could come back to or exceed the level without the project.

6) There is no deduction for depreciation or any kind of discount for house and other asset compensation, which should be based on replacement values. Compensation can be made in cash or in kinds (such as exchange of property rights). No matter by what means, the compensation should be enough to buy a house with similar structure and condition of the same size in the same area. The project sponsor has the responsibility to recommend affordable houses to the relocatees, and help them deal with the transactions (including some preferential benefits).

7) All the persons and buildings that are negatively affected by the project should be compensated. The compensation and help should not be canceled because of the incompleteness of residence register, lease and operation register.

8) No compensation or relocation could be given to the people who enters the project area and occupies any land or house beyond the deadline as stipulated. Anyone who refuses to sign the compensation for relocation contract or refuses to remove after the contract was signed will be treated according to relevant judicial programs or laws.

9) Relocatees’ loss are compensated during the moving and transfer process. The recommended host area are provided with elementary basic infrastructure and service facilities.

10) Non-residential units’ loss caused by remove and suspension of business are compensated. Reconstruction within the affected areas and relocation in outside area should conform to the planning requirements, as well as the second- remove should be avoided in the coming days.

11) Vulnerable group should be treated reasonably. The project sponsor should help them with choosing and moving their houses.

12) The owners of the infrastructure should be compensated. The compensation should be used for the reconstruction of affected infrastructure and rehabilitation of the function.

13) Land acquisition and the loss caused by land acquisition should be compensated reasonably. Compensation for land acquisition will be paid to the collective organization to develop the collective economy, improve the public Facilities and provide rehabilitation to affected villagers. The resettlement subsidies will be paid to the resettlement sponsors or the resettled individuals to pay the insurance fee.

14) All the fees for land acquisition should be paid within three months after the compensation and resettlement program get approved. It should also be no later than the day the land is put into construction use.

15) Generally, the temporarily land acquisition should not be longer than two years. The user should restore the conditions of the occupied cultivated land within one year after its occupation. When the collective land is occupied, a temporary land acquisition contract should be signed between the temporary land occupier and the collective economic organization or the residential committee and compensation for temporary land acquisition should be paid. The temporary land acquisition compensation should cover the loss to the former owner and user of the land (including the agriculture taxes). The standard of compensation should be increased and the former user of the land should be resettled appropriately if the use purpose or property right of the land changes when it was returned. If the temporarily land acquisition exceeds two years, the acquisition procedure should be handled again.

16) In order to insure the living standards and income levels will not decrease, all the labor forces affected by the land acquisition and resettlement should be provided with employment opportunity. Rehabilitation by allocating replacement land is encouraged, supplemented by development of second and tertiary industries. The villagers can choose to find a job by oneself.

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17) Encourage the relocatee to participate in the preparation of resettlement planning and the process of resettlement; let the relocatee know the compensation and resettlement policies and standards. It should widely collect opinions of the affected peoples during survey, and incorporate them in the RP report.

18) Seriously consider the complaints made by the affected people and help them with their difficulties and inconvenience in land acquisition and relocation reasonably and practically. The problems or dissatisfactions with the compensation standards should be resolved mainly through negotiation. If negotiation does not work, arbitration even a country appeal could be carried out. Any compulsive actions by the resettlement sponsor should conform to relevant laws.

19) Relative organizations should cooperate together to intensify the resettlement organizations at all levels and train all the staff that will go to duties.

20) In the process of the project, the County PMO is responsible for monitoring the interior implement of the project, hiring an independent organization to do the exterior monitoring and submitting the monitoring report to ADB periodically. Resettlement Assessment will be carried out after the project.

21) Any important changes made in the implement of resettlement (such as decreasing the compensation standards, changing the location or scale of the land acquisition for the project, new sub-project, changing any sub-project into a domestic invested one) should be reported to ADB in advance. If necessary, the resettlement planning can be revised or other resettlement can be prepared.

22) If other non-ADB project demolition occurs ahead or simultaneously in the ADB project area, the ADB project can take the advantage of other project under the condition that all the compensation and resettlement standards accord to the resettlement planning.

4.3.3 Compensation Reference and Standard for Land Acquisition 4.3.3.1 Permanent Land Acquisition of Project  Collectively Owned Land 1) Compensation Standards for Cultivated Land Acquisition

① Analysis on output value of the cultivate land According to the relevant provisions of XZBF [2005] No.47 document, A Notice by General Office of Hunan Provincial People’s Government about Issuing Land Requisition Annual Output Standards, the annual yield standard of Xiangtan urban area governing Xiangtan City is: The annual output of Xiangtan City is listed as follows: 1800 yuan for paddy field of class I, 1600 yuan for paddy field of class II, the average (1700 yuan) is adopted in this project. By an adjusting ratio of 0.9, the annual output of paddy filed in Xiangtan City is 1530 yuan.

②Multiple of Land Compensation and Resettlement Subsidy According to the relevant regulations from Land Administration Law of the PRC, Land Acquisition and Resettlement Regulation for Large and Medium Water Resources and Hydro Project and Methods of Hunan Province for Implementing the Land Administration Law of the PRC, land compensation for the acquired cultivated land is 10 times of the annual output value of the land, and resettlement subsidy for each person needing economic rehabilitation is 6 times of the output value per mu. The young crops of less than one year growth period are compensated according to output value of a quarter; and the cost of young crops is calculated as 40 percent of the annual output value.

③Calculated Unit Price of Compensation According to annual output value of the cultivated land per mu in the project area as well as compensation multiple, the unit price of compensation is calculated as 27880 yuan per mu for paddy field, 19680 yuan per mu for dry farmland, 27200 yuan per mu for pond, 13440 yuan per mu for flood land, and 24200 yuan per mu for house site.

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2) Implemented Unit Price of Compensation Permenanet land acquisition for Xiangtan Urban Flood Control Project locates around urban area. With rapid economic development, land price increases quickly. Based on actual implementations, compensations for various lands are: 61210 yuan per mu for paddy land, 19680 yuan per mu for dry land, 48012 yuan per mu for pond, 13440 yuan per mu for flood land, and 62340 yuan per mu for house site. All of them are higher than the calculated replacement prices based on relevant documents and policies. Compensation prices are in full considerations of national and local policies, while taking into account the livelihood recovery of land-lose resettlers, which is reasonable. In the course of land acquisition, land-lose resettlers give their full cooperation.

 State-owned Land 1) Compensation Standards for Land Used by Enterprises and Institutions The industrial lands acquired in this project are mainly used by the affected work units for offices and administration buildings. After the joint negotiations among Xiangtan City PMO, relocated units and their departments in charge and based on location factor of the demolished buildings, no separate compensation are counted after recovery measues are adopted to the affected enterprises and institutions.

2) Compensation Standards for Residential Land The residential land acquisition in this project is mainly housing plot of town dwellers. According to location factor of the demolished houses, through the consultation among Xiangtan PMO and affected work units as well as its department in charge, the compensation for land occupation of all the urban residential houses is paid as 150 yuan per square meter. Base on this, unit price for compensating residential land acquisition in this project is 24200 yuan per mu. Considering that the compensation for urban residence land is included in compensation standard for urban residential houses, no separate item will be included in the final resettlement budget. However, in actual implementation, compensation of 62340 yuan per mu are provided for residential lands.

Caculated compensation standards for various types of land permanent occupied by the project are shown in Table 4.3-1; actual implementated compensation standards are shown in Table 4.3-2. Compensation Standards for Permanent Land Acquisition in Xiangtan City Urban Flood Control Project Table 4.3-1 Unit: yuan/mu Compensation Compensation Land Right Land Type Compensation Fee for Fee for Young Compensaton Fee Relocation Crops Standard Paddy field 17000 10200 680 27880 Dry Farmland 12000 7200 480 19680 Collective land Pond 17000 10200 27200 Residential land 17000 7200 24200

Beach land 8400 5040 13440 Land used by Enterprises 55760 and Institutions State-owne Land used Counted into the d Land by Residential urban houses. Houses Appropriate Other land without use compensation

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Actual Compensation Standards for Permanent Land Acquisiton in Xiangtan City Urban Flood Control Project Table 4.3-2 Unit: yuan/mu Land Right Land Type Compensation Standards Paddy field 61210 Dry Farmland 19680 Collective land Pond 48012 Residential land 62340 Beach Land 13440 Land used by Enterprises and 55760 Institutions State-owned Land Land used by Residential Houses Counted into the urban houses. Other land use Appropriate without compensation

4.3.3.2 Temporary Land Acquisition in this Project The compensation fee for temporary land acquisition in this project includes the cost of young crops, compensation fee for land loss and the reclamation cost. Compensation fee for land loss is mainly used for compensating total amount of output or income of landowner from the original land, whereas the reclaiming expense is mainly used for reclaiming temporary land after occupation. Compensation fee for land loss is determined by the annual output value and occupation time of the original land, whereas the reclamation cost is determined by actual expense of reclaiming.

1) The Unit Price of Temporary Land Acquisition Compensation According to materials provided by design organization, temporary construction site in this project is mainly the earth material site, which contains paddy field, dry farmland, hilly forest land (including timber land and shrub) and wasteland, with 2-year occupation time. The annual output value of paddy field is 1700 yuan per mu, and the cost of young crops is 680 yuan according to 40 percent of the annual output value; The annual output value of dry farmland is 1200 yuan per mu, and the cost of young crops is 480 yuan according to 40 percent of the annual output value; The average annual output value of timber land is 680 yuan per mu according to 40 percent of the vicinal paddy field, the forest compensation fee is 680 yuan according to shrub land; The average annual output value of shrub land is 510 yuan per mu according to 30 percent of the vicinal paddy field, the forest compensation fee is 510 yuan according to shrub land. No compensation fee will be paid for the wasteland temporarily occupied.

According to the standard, the compensation unit price of the temporary land acquisition is as follows: paddy field, 4080 yuan/mu; dry farmland, 2880 yuan/mu; timber forest land, 2040 yuan/mu and shrub land, 1530 yuan/mu.

2) The Expense of Reclaiming Temporary Land Acquisition Based on Temporary Land Rehabilitation Plan in the project, both the restoration engineering measures and plant measures of temporary construction site are included in the soil and water conservation design. Only reclamation of the temporary dry farmland acquisition is planned in this report, and the reclaiming area is 83.8mu. Based on analysis on the engineering volume and the unit price that is necessary to reclaiming per mu cultivated land of the earth material site, the expense of reclaiming cultivated land is 3439 yuan per mu through calculation.

For details of analysis on the unit price of reclaiming cultivated land per mu, see Table 4.3-2.

56 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Analysis of Unit Price for Reclaiming Cultivated Land per mu Table 4.3-2 Item Unit Unit Price (yuan) Quantity Investment (yuan) Remarks Total 3439 1. Earth work 3089 1.1Clay cover m3 6.5 333.5 2168 1.2Arable layer backfilling m3 2.95 200.1 590 1.3Arable layer leveling m3 0.75 333.5 250 1.4Laying field ridge m3 6.21 13 81 2.Soil maturizaition 250

2.1 Farm fertilizer dan 1 50 50 2.2 Phosphorus fertilizer kg 0.7 150 105 2.3 Carbamide kg 1.3 50 65 2.4 Potash fertilizer kg 1 30 30 3. Field matching Facilities mu 100 1 100

For details of standard for temporary land acquisition of in this project, see Table 4.3-3.

Xiangtan City Urban Flood Control Project Temporary Land Acquisition Compensation Standard Table 4.3-3 Land Loss Fee (yuan/mu) Fee for Average Young Reclamation Total No. Land Type Annual Yield Land Use Compensation Crops Fee (yuan/mu) (yuan/mu) Limit Standard (yuan/mu) (yuan/mu) 1 Paddy field 1700 2 years 3400 680 3439 7519 2 Dry farmland 1200 2 years 2400 480 3439 6319 3 Timber forest 680 2 years 1360 680 2040 4 Shrubbery 510 2 years 1020 510 1530

4.3.4 Relocation Compensation Reference and Standards for Residential House and Auxiliaries 1) Residential House ① Calculation of Replacement Price The dwellers’ residential houses in project area are mainly rural houses and mostly brick concrete and brick wood structures. To constitute reasonably compensation standards to make relocated household acquire the compensation equal to the replacement value, we investigated and analyzed the resettlement prices of brick concrete buildings and brick wood houses in the area affected by the project at the same time of investigating physical indices. The material consumption of house construction is determined by the relevant quota from Quota Manual of Architecture and Construction. Based on budgetary price of building materials in the fourth quarter of 2006 in Xiangtan City, the price of materials is determined through analysis: the replacement value of urban brick concrete house is 362 yuan per square meter; the replacement value of brick wood house is 278 yuan per square meter. Whereas the replacement value of rural residential brick concrete house is 305 yuan per square meter; the replacement value of rural brick wood house is 238 yuan per square meter. See Table 4.3-4 and 4.3-5 for details of analysis results of replacement price. According to the locality factors and

57 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

resettlement modes of the houses to be demolished, after the joint negotiation of the Xiangtan City PMO, relocated units and their departments in charge, all urban residential houses will be compensated at the cash resettlement mode in principle, of which, the land is compensated at 150yuan/ m2, whilst the compensated standard of the structures will base on the replacement value of structures; new housing plot will be arranged unitedly for the rural houses with the replacement value as the compensated standard. In general, these compensation rates will be used by the resettlement office as lowest limit. The implemented compensation rates will be based on actual appraised values in the project areas.

Considering the different rate of decoration and building materials of residential houses in the project area, compensation standards for residential house with various types of structure in this project can fluctuate within the range of ten percent or so, see Table 4.3-4 for details.

Analysis and Calculation Table of Replacement value of Structure Classification Unit Area of Urban Residential House in Xiangtan City (at the price level of Dec. 2013) Table 4.3-4 Brick-Concrete Brick-wood Frame Structure Unit Price Structure Structure Item Unit Remarks （yuan） Amount Amount Amount Quantity Quantity Quantity （yuan） （yuan） （yuan） I. Direct Cost 398.63 306.78 235.17 (1) Basic Direct Cost 390.81 300.76 230.56 1. Cost of Materials 255.11 204.16 155.81 Rolled Steels kg 3.6 30 108 12.7 45.72 3.78 13.61 Small Grey Tile Piece 0.1 180 18 Cement kg 0.28 172 48.16 79.5 22.26 13.2 3.7 Timber m3 508 0.02 10.16 0.08 40.64 0.105 53.34 Cast Iron Pipe kg 4.2 2.2 9.24 Felt m2 2.55 0.75 1.91 0.85 2.17 Asphalt kg 3.1 2.4 7.44 1 3.1 Glass m2 15.2 0.15 2.28 0.15 2.28 0.15 2.28 Brick Piece 0.18 240 43.2 240 43.2 218 39.24 Lime kg 0.14 70 9.8 45 6.3 68 9.52 Sand m3 37 0.3 11.1 0.35 12.95 0.23 8.51 Macadam m3 31 0.26 8.06 0.3 9.3 0.05 1.55 Nail kg 6 0.5 3 0.5 3 Other Materials 2.00% 5 4 3.06 Labor 2. Labor Cost 23 5.9 135.7 4.2 96.6 3.25 74.75 day 2 percent of Basic 2) Other Direct Cost 2.00% 7.82 6.02 4.61 Direct Cost 7% of the II. Indirect Cost 7.00% 27.9 21.47 16.46 Direct Cost III. Construction 7％ of 7.00% 29.86 22.98 17.61 Profit Item 1-2 3.41％ IV. Tax 3.41% 14.61 11.24 8.62 of Item 1-3 V. New Construction m2 471 362.47 277.86 Cost Round-off Value yuan 471 362 278

58 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Analysis and Calculation Table of Replacement value of Structure Classification Unit Area of Rural Residential House in Xiangtan City Table 4.3-5 Brick-concrete Structure Brick-timber Structure Unit Price Item Unit Quantit Amount Amount Remarks （yuan） Quantity y （yuan） （yuan） I. Direct Cost 294.59 230.15 (I). Basic Direct Cost 288.81 225.64 1. Cost of Materials 177.37 141.55 Rolled Steels kg 3.05 14.7 44.84 4.8 14.64 Small Grey Tile Piece 0.084 180 15.12 Cement kg 0.225 90 20.25 50.3 11.32 Timber m3 426.37 0.08 34.11 0.105 44.77 Cast Iron Pipe kg 3.2 2.2 7.04 Felt m2 1.83 0.85 1.56 Asphalt kg 2.57 1 2.57 Glass m2 21.08 0.15 3.16 0.15 3.16 Brick Piece 0.156 240 37.44 218 34.01 Lime kg 0.11 45 4.95 68 7.48 Sand m3 26.58 0.35 9.3 0.23 6.11 Macadam m3 28.84 0.3 8.65 0.05 1.44 Nail kg 7 0.5 3.5 0.5 3.5 2. Other Materials 6.00% 10.64 8.49 3. Labor Cost Labor day 24 4.2 100.8 3.15 75.6 2 ％ of the basic (II) Other Direct Cost 2.00% 5.78 4.51 direct cost II. Tax 3.41% 10.05 7.85 3.41％ of Item 1 III. New Construction m2 304.64 238 Cost Round-off Value yuan 305 238

Compensation Standard for Residential Housing Relocations in Urban Flood Control Project of Xiangtan City Table 4.3-6 Unit Price of Land Compensation Housing Type Structure Unit Remarks Replacement Price Standard Brick Fluctuant Amplitude 612～ yuan/m2 530 150 512 Concrete 748 Fluctuant Amplitude 585～ Urban House Brick Wood yuan/m2 500 150 428 715 Simple yuan/m2 351 80 Strucutre Brick Fluctuant Amplitude 274～ yuan/m2 305 305 Concrete 336 Fluctuant Amplitude 214～ Rural House Brick Wood yuan/m2 238 238 262 Simple yuan/m2 65 65 Strucutre

59 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

② Unit Price of Actual Compensation In Table 4.3-6, replacement price of houses are calculated. In actual implementation, the compensation standards of houses are based on Methods of Hunan Province for Implementing the Urban Houses Demolition Administration Regulations(NO. 157 Decree by the People’s Government of Hunan Province issued on July 12, 2002, and Methods for Compensating Land Acquisition, House Demolition and Resetttlement in Xiangtan City (Xiangtan Administation Document No.18 (2001), where the compensation standards are higher than the replacement price. This allows more benefits to the resettlers, fully mobilizes resettler’s support to the project, and ensures the resettlers to restore livelihoods as early as possible. Unit price of actual compensation refer to Table 4.3-7. Compensation Standard for Residential Housing Relocations in Urban Flood Control Project of Xiangtan City Table 4.3-7 Compensation House Type Structure Unit Remark Standard yuan/m2 Fluctuant Amplitude Brick-concrete 680 612～748 Urban House yuan/m2 Fluctuant Amplitude Brick-wood 650 585～715 Simple Structure yuan/m2 418 yuan/m2 Fluctuant Amplitude Brick-concrete 305 274～336 Rural House yuan/m2 Fluctuant Amplitude Brick-wood 238 214～262 Simple Structure yuan/m2 65

2) Auxiliary Facilities Compensation for auxiliary facilities in this project is determined by similar project in this province and the unit price of current building materials in Xiangtan City. For details, see Table 4.3-7.

Compensation Standard for Auxiliary Facilities of Houses in Xiangtan City Urban Flood Control Project

Table 4.3-7 No. Item Unit Compensation Standard Notes 1 Bounding Wall yuan/m2 40 2 Cement sunny ground yuan/m2 25

3) Compensation for Infrastructure Compensation for infrastructure mainly includes investment of resettlement housing plots, including leveling, and facilities construction such as water supply, electricity, and road access. According to resettlement plan, rural relocation households will mainly resettled dispersedly within their own village groups with better conditions of landform, road access, electricity, and water supply. The urban residents will be resettled at Tongbao development zone. The current infrastructures in the resettlement site are well-developed. For all the resettlers in the new resettlement site, using existing water supply, power network and road access, the issue of providing related infrastructure could be solved.

According to landform of resettlement site in this project area and with reference to other provincial similar projects, the project compensation fee for infrastructure such as site leveling, drinking facilities and lighting facilities is set at per capita 3300 yuan.

4) Moving and Transfer Allowance For resettlers affected by land acquisition relocation, although most of them will be relocated not far away, in the

60 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

local region, it is inconvenience for rebuilding houses in such relative tight schedule, thus the moving and transfer allowance will include moving expense, living allowance, temporary housing allowance, second moving expenses, and so on. The transfer period is set at three months. During the transfer period, the resettlmenet allowance is 2500yuan/household and the moving and transfer allowance is 1000yuan/household, which totals 3500yuan/household.

4.3.5 Compensation Reference and Standard of Affected Enterprises and Institution 1) Non-residential houses In the project area, most of non-residential houses are office buildings and production factories of enterprises and institutions, so the compensation standard will comply with the standard of urban residential housing demolition. In general, these compensation rates will be used by the resettlement office as lowest limit. The implemented compensation rates will be based on actual appraised values in the project areas. Since the land ownership of the enterprises have been compensated at the corresponding standard, the non-residential houes regarding the project only take account of the replacement value. For details of compensation standard, see the Table 4.3-8.

61 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Compensation Standard for Non-residential Housing Relocations in Urban Flood Control Project of Xiangtan City Table 4.3-8 Compensation Housing Type Structure Unit Remarks Standard Fluctuant Frame Structure Yuan/m2 649 Amplitude 594～714 Fluctuant 2 Non-residential Brick Concrete Yuan/m 530 Amplitude House 577～583 Fluctuant Brick Wood Yuan/piece 500 Amplitude 450～550 Simple Structure Yuan/piece 352

2) Accessorial facilities The compensation standard of accessorial facilities will comply with the compensation standard of accessorial facilities relocations of urban residential housing. See Table 4.3-9 for details.

Compensation Standard for Auxiliary Facilities of Non-residential Houses in Urban Flood Control Project in Xiangtan City Table 4.3-9 NO. Item Unit Compensation Standard Notes 1 Bounding Wall yuan/m2 40 2 Cement Sunny Ground yuan/m2 25 3 Water Tower yuan/piece 500 4 Chimney yuan/piece 200

3) Compensation Fee for Production Equipment According to the relevant regulations in the Methods of Hunan Province for Implementing Urban Houses Demolition Administration Regulation, the compensation of enterprises production equipment includes the compensation of removable equipment and non-removable equipment in this project. According to survey, there is no enterprise and institution involved in this project, so the compensation for production equipment will not be considered.

4) Relocation Allowance The relocation allowance during relocation of enterprises and institutions in this project will be paid as per 25 yuan/m2 according to the amount of demolished non-residential housing space.

5) Compensation for the Loss of Stop Production and Working in Removing Period According to survey, for enterprise and institution involved in this project, no overall relocation or equipment moving is required. So the loss compensation for stop production and working in removing period will not be needed.

4.3.6 Compensation Reference and Standard of Special Facilities Affected by the Project 1) Transportation Facilities Accumulation of project area transportation facilities recovering and rebuilding compensation investment shall accord to the following stipulations: JGLF Document No. [1996] 612 Highway Basic Construction Project

62 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Budgetary Estimate and Budget Compiling Method issued by Ministry of Communications; XJZZ Document No. [1996] 533 Notice on Compensatory Regulation of Formulating Highway Basic Construction Project Valuation, Budgetary Estimate and Budget Compiling Method issued by Department of Communications of Hunan Province; JGLF Document No. [1996]612 Highway Project Budgetary Estimate Quota and Basic Price Table of Highway Project Budgetary Estimate Quota issued by Ministry of Communications; According to the analysis and calculation and with the reference to the compensation standard for other projects, unit price of post facility rebuilding compensatory of the project is determined as follows: Hasty road is 100000 yuan/km and culvert is 10000yuan/piece.

2) Facilities for power transmission and transformation In order to formulate the compensational standard correctly and reasonably, investigation and analysis of average price per kilometer of 10kV high voltage wire and 380 low voltage in the project area is carried out in details along with investigation on physical indices. According to the electric engineering budgetary estimate compiling method and related quota, the consumption volumes of materials are determined by calculation and analysis on unit price. The prices of material are determined on the basis of material budget price of the fourth quarter of 2006 in Xiangtan City. According to the typical analysis on unit price and with reference to the similar projects, unit price of rebuilding compensation for 10kV high voltage tension and 380V low voltage tension in the project area is determined to be 50000 yuan/km and 27500 yuan/km (see Table 4.3-10 and Table 4.3-11). The expense for the transferring and rebuilding of transformer4s is determined as 3000 yuan/place by referring to that of other similar project.

3) Telecommunication Facilities In order to formulate the compensational standard correctly and reasonably, investigation and analysis of average price per kilometer of HYA3-0.5 Type post and telecommunication cable in the project area is carried out in details along with the investigation on physical indices. According to the communications engineering budgetary estimate compilation method and the relevant quota, the consumption volume of materials are determined for the unit price analysis and calculation. The prices of material are determined on the basis of material budget price of the fourth quarter of 2006 in Xiangtan City. According to the typical analysis on unit price and with reference to the similar project, unit price of rebuilding compensation for post line with of HYA3-0.5 type cable in the project area is determined to be 50000 yuan/km, please see Table 4.3-12 for details.

63 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Unit Price Analysis Table of Per-kilometer 10KV Electric Power Line Table 4.3-10 Unit Price (yuan) Amount (yuan) No. Name of Cost Specification (ratio) Unit Quantity Sub-total Wage Material Machine Sub-total Wage Material Machine Round-off compensation standard 50000 Total 49966 I Material cost 24906 (1) Main material cost 22642 1 Concrete pole YB-15-10 Piece 20 554 11080 2 Wire LGJ-35/6 kg 444 16.5 7326 3 Cross arm ∠63×6×1500 Set 20 59 1180 4 Needle ceramic bottle PT-15T Set 60 21 1260 5 Single crown bar ZJ1-62×R95 Set 20 41 820 6 Hoop BGR-R100 Set 20 17 340 7 Guy wire GJ-35 kg 11 7.5 83 8 Guy anchor LP-04 Set 4 50 200 9 Pull rod φ15*2500 Piece 4 32 128 10 Guy anchor ring UM22 Piece 4 28 112 11 Material loss % 0.5 113 (2) Supplementary material cost 10% of main material cost 2264 II Installation Cost 25060 (1) Site transportation 6590 4834 56 1700 1 Passenger transportation Average run distance1km tkm 14.12 230 230 3248 3248 0 0 2 Truck material handing t 14.12 47 7 4 36 663 99 56 508 3 Transportation by truck Run distance 50km tkm 706 1.15 0.15 1 812 106 0 706 4 Terrain adjustment and increase 40% of item 1 to item 3 % 40 3453 1214 1867 1381 486 (2) Earth and rock work 2334 950 1031 353 Pole pit 0.8×0.8×1.9 m3 24.32 86 35 38 13 2091 851 924 316 Guy wire pit 0.4×0.8×2.2 m3 2.82 86 35 38 13 243 99 107 37 (3) Erect the pole and lay the wire 2735 1426 890 419 1 Erect the pole Piece 20 46.2 29.3 2.7 14.2 924 586 54 284

64 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Unit Price Analysis Table of Per-kilometer 10KV Electric Power Line Table 4.3-10 Unit Price (yuan) Amount (yuan) No. Name of Cost Specification (ratio) Unit Quantity Sub-total Wage Material Machine Sub-total Wage Material Machine 2 Cross arm installation Set 20 9.4 7.2 2.2 188 144 44 0 3 Fabricate the guy wire Set 4 11.6 10 1.6 46 40 6 0 4 Installation of guy anchor Set 4 5 5 20 20 0 0 5 Lay the wire km/Single wire 3 519 212 262 45 1557 636 786 135 (1) to (3) in total 11659 7210 1977 2472 (IV) Basic direct cost % 22 7210 1586 (V) General cost % 53.3 7210 3843 (VI) Design profit % 49.2 7210 3547 (VII) Adjustment of labor cost % 27.27 7210 1966 (VIII) Far place adding cost % 11.48 7210 828 (IX) Tax 3.348% of item 1 to item 8 % 3.348 23429 784 (X) Labor insurance funds 3.5% of item 1 to item 9 % 3.5 24213 847

65 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Unit Price Analysis Table of Per Km. 380V Electric Line Table 4.3-11 Specification Unit Price (yuan) Amount (yuan) No. Name of Cost Unit Quantity Remarks （Ratio） Sub-total Wage Material Machine Sub-total Wage Material Machine The compensation standard is Total 27493 calculated as 27,000 yuan/km. I Material cost 11861 Main material （1） 10783 cost

1 Concrete pole YB-15-7 Piece 20 245 4900

2 Wire LGJ-16/3 kg 274 16 4384 Four lines cross 3 ∠50×5×1500 Set 20 40 800 arm

Butterfly ceramic 4 ED-2 Set 160 1 160 bottle

5 Encircling BGR-R80 Set 20 11 220 6 Guy wire GJ-35 kg 6 7.5 45 7 Guy anchor LP-04 Piece 2 50 100 8 Pull rod φ15*2500 Piece 2 32 64

9 Guy anchor ring UM22 Piece 2 28 56

66 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Unit Price Analysis Table of Per Km. 380V Electric Line Table 4.3-11 Specification Unit Price (yuan) Amount (yuan) No. Name of Cost Unit Quantity Remarks （Ratio） Sub-total Wage Material Machine Sub-total Wage Material Machine 10 Material loss % 0.5 54

Supplementary 10% of main （2） 1078 material cost material

II Installation Cost 15632

Site （1） 4009 2940 34 1035 transportation Man-power Average run 1 tkm 8.59 230 230 1976 1976 0 0 transportation distance1km Truck material 2 t 8.59 47 7 4 36 403 60 34 309 handing Truck Run distance 3 tkm 429.5 1.15 0.15 1 494 64 0 430 transportation 50km Terrain 40% of item 1 to 4 adjustment and % 40 2100 739 1136 840 296 3 increase Earth and rock （2） 1045 425 462 158 work Pole pit 0.8*0.8*1.5 m3 11.52 86 35 38 13 991 403 438 150 Guy wire pit 0.4*0.8*2 m3 0.64 86 35 38 13 54 22 24 8

67 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Unit Price Analysis Table of Per Km. 380V Electric Line Table 4.3-11 Specification Unit Price (yuan) Amount (yuan) No. Name of Cost Unit Quantity Remarks （Ratio） Sub-total Wage Material Machine Sub-total Wage Material Machine Upright （3） stanchion and 2133 1184 525 424 lay wire Upright the 1 Piece 20 46.2 29.3 2.7 14.2 924 586 54 284 cement pole Cross arm 2 Set 20 9.4 7.2 2.2 188 144 44 0 installation Fabricate the guy 3 Set 2 11.6 10 1.6 23 20 3 0 wire Installation of 4 Set 2 5 5 10 10 0 0 guy anchor 5 Lay the wire km/single wire 4 247 106 106 35 988 424 424 140

(1) to (3) in total 7187 4549 1021 1617

（4） Basic direct cost % 22 4549 1001

（5） General cost % 53.3 4549 2425 （6） Design profit % 49.2 4549 2238 Adjustment of （7） % 27.27 4549 1241 labor cost

68 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Unit Price Analysis Table of Per Km. 380V Electric Line Table 4.3-11 Specification Unit Price (yuan) Amount (yuan) No. Name of Cost Unit Quantity Remarks （Ratio） Sub-total Wage Material Machine Sub-total Wage Material Machine Far place adding （8） % 11.48 4549 522 cost 3.348% of item （9） Tax % 3.348 14614 489 1 to 8

Labor insurance 3.5% of item 1 （10） % 3.5 15103 529 funds to 9

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Unit Price Analysis Table of Average Per-Km. Telecommunication Line

Table 4.3-12 Electric Cable HYA3-0.5 No. Name of Cost Specification（ratio） Unit Quantit Unit Price Amount Remarks y (yuan) (yuan) The Construction compensation installation 49541.4 standard is project cost calculated as 50000 yuan/km. Direct project I 46825.4 cost (I) Direct cost 44263.4 1 Labor cost 1726 Technical staff Labor （1） 70 16.8 1176 cost day Common labor Labor （2） 50 11 550 cost day

2 Material cost 42537.4

Main material （1） 42116.4 cost Power pole 20 2700 8mConcrete pole Piece 0 7mConcrete pole Piece 0 6mConcrete pole Piece 20 135 2700 Galvanized 1403.4 stranded wire

Lifting rope (7/2.2) kg 228 5.65 1288.2

Guy wire (7/3.0) kg 16 7.2 115.2 Transmitting 36900 wire

Optical fiber cable m 0 Electric cable m 1000 36.9 36900 Coupler 45mm Set 1420 0.34 483 Anchor tie steel Set 4 26 104 handle Concrete Piece 4 42 168 capstan Fish-plate Set 20 7.65 153

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Unit Price Analysis Table of Average Per-Km. Telecommunication Line

Table 4.3-12 Electric Cable HYA3-0.5 No. Name of Cost Specification（ratio） Unit Quantit Unit Price Amount Remarks y (yuan) (yuan) Single-suspend 20 16 320 ed encircling Set

Outdoor Set 1 38 38 junction box Junction box set 1 15 15 tee metal

Supplementary 5% of main material (2) 421 material cost cost

Other direct (II) 1762 cost Instrument 4% of technician staff 1 47 working cost cost 12% of technician Production tool 2 staff cost +2% of 152 working cost common labor cost

Project vehicle 13% of technician 3 153 working cost staff cost

Site equipment 12% of technician 4 141 moving charge staff cost

Mobile 4.8yuan/day for 5 construction 280 technician staff cost subsidy Project 6 10% of labor cost 173 interference cost 8.8 for technician Labor cost price 7 staff， 4 for common 816 difference staff cost (III) Site cost 800 22% of technician Temporary 1 staff cost+ 10% of 314 facility cost common labor cost Site 32% of technician 2 management staff cost+ 20% of 486 cost common labor cost

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Unit Price Analysis Table of Average Per-Km. Telecommunication Line

Table 4.3-12 Electric Cable HYA3-0.5 No. Name of Cost Specification（ratio） Unit Quantit Unit Price Amount Remarks y (yuan) (yuan) 48% of technician II Indirect cost 564 staff cost

III Planed profit 30% of labor cost 518

IV Tax 3.41% of item 1 to 3 1634

4) CATV Lines In reference to the compensation standard of similar projects in Xiangtan City, the reconstruction compensation standard of the CATV lines in the project area is determined to be RMB 35000yuan/km.

5) Water conservancy facilities According to the compensation standard of adjacent similar projects in Xiangtan City, the reconstruction compensation standard of the electric irrigation station in the project area is determined to be RMB 25000yuan per station.

Summary Table of Special Facilities Compensation Standard in Xiangtan City Urban Flood Control Project Table 4.3-14 Item Sub-item Unit Standard (yuan) Remark I. Communication facility Hasty road km 100000 Culvert set 10000 II. Facilities of power transmission and transformation

It only contains 10kv low voltage line km 50000 moving charge and installation cost

380V low voltage line Km 27500 Transformer Piece 3000 III. Telecommunication line

Electric cable HYA3-0.5 telephone line piece 50000

IV. Cable TV line km 35000 V. Water conservancy facilities Electricity-irrigated machine dock Set 25000

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4.4 Table of Entitlement Matrix According to the on-spot investigation conducted by PMO and resettlement design unit, main impacts on land acquisition and demolition have been confirmed on the basis of natural loss, and entitlement matrix table can be used as the basis of paying the compensation. For details, see Table 4.4-1.

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Rights and Interests of Relocatees in Xiangtan City Urban Flood Control Project

Affected Affected Responsible Compensation Standard (yuan/Unit) Policy of Land Acquisition and Resettlement Type Object Agency Compensation Item Standard (amplitude) Rural residential houses and auxiliary facilities Brick concrete 305 yuan/m2 (274～336) structure 1.The compensation of all the houses shall be obtained according to replacement value, and no Brick wood structure 238 yuan/m2 (214～262) depreciation charge is allowed. Available materials belong to the relocatees, and they also can use Simple structure 65 yuan/m2 them to build new house. These compensation rates will be used by the resettlement office as the Auxiliary Facilities lowest limit. The implemented compensation rates will be based on actual appraised values in the project areas. Bounding Wall 40 yuan/m2 2. Resettlement institution shall help the rural relocatee to get the new housing plot in his own group, Cement Sunny each person shall get 3,300 yuan for resettlement site leveling, water drinking and lighting. 25 yuan/m2 3. The resettlement plan respects the idea of the majority of relocatees. Self-demolition and Ground self-building mode shall be adopted and the relocatees can build their house scatterly in rural Infrastructure Compensation Site-leveling, dispersedly, and the relocatees can consider freely whether to use the available materials of old 1500 yuan/person houses fully. Before the completion of new house, the relocatees can live in their original houses and drinking and lighting they shall not be forced to move before the stipulated date. Demolition Subsidy Rural City PMO, 4. Relocatee shall get the notice three months before the construction of new houses, and they shall residential City Land have at least two to three months to build the house. Discuss the arrangement of house building time Relocatee Moving charge 150 yuan/person house and Resources fully with the relocatee in village and town, and it is better to arrange it in slack season. Moving and accessorial Bureau transfer allowance will be considered including moving cost, living allowance, medical expense, building temporary house transfer and second-time moving charge. And the transfer period is three months. 5. Effective measures shall be employed by the resettlement institution in the course of Living allowance 100 yuan/person implementation to help the vulnerable (the old, the handicapped, the weak and woman-headed households): the subsidy of building new houses for specially poor family is 3000 yuan per household, the living allowance for the vulnerable family is 600 yuan per person. And the Township (Town) Temporary house 200 yuan/person Committee and Village Committee shall assist them to build the house and help them move into the subsidy new house by consulting them. 6. Compensation fee for house shall be paid to the relocatee before the construction of new house. If the installment plan is adopted, the final cost shall be paid to them before the completion of new house. Second Moving 7. The resettler can lodge appeal for any aspects of the resettlement, including the compensation 150 yuan/person standard. No expense shall be paid to the organ dealing with resettlers’ appeal. Charge

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Compensation Standard (yuan/Unit) Affected Responsible Affected Type Policy of Land Acquisition and Resettlement Compensation Object Agency Standard (amplitude) Item Rural residential houses and auxiliary facilities Brick concrete 512 yuan/m2 (459～ structure 563) 1. The resettlement plan respects the ideas of the large majority of the resettlers. Cash compensation and Brick wood 428 yuan/m2 (385～ property-right-exchange mode shall be adopted to the urban dwellers affected by the project, and the structure 471) houses to be demolished will be compensated at the replacement value in principle. Before the Simple structure 80 yuan/m2 completion of the relocatees’ new houses, they can reside in their original houses before the date stipulated. Auxiliary Facilities 2 2. All the urban residential houses shall be compensated according to the mode of cash resettlement in Bounding Wall 40 yuan/m Cement Sunny principle, the section of land is compensated as 150 yuan per square meter, and compensation standard 25 yuan/m2 for the section of construction complies with the replacement value. In general, these compensation rates Ground will be used by the resettlement office as lowest limit. The implemented compensation rates will be based Water Tower 500 yuan/piece on actual appraised values in the project areas. Chimney 200 yuan/piece 3. For the construction area of property-right-exchange compensation equal to original construction area Infrastructure Compensation of relocated houses, its relevant account will not be settled as price difference; for the compensation area Site-leveling, less than the original construction area, its account will be settled as the price of commercial housing; for drinking and 1500 yuan/person

the compensation area more than the space within the range of 15% of the original area, the account will lighting Urban City PMO, be settled as replacement value; for the compensation area more than the space beyond the range of Demolition Subsidy residential City Land Relocatee 15% of the original area, the account will be settled by multipling a certain coefficient but cannot exceed house and Resources 20% of the original house price. accessorial Bureau Moving charge 150 yuan/person 4. The compensation of all the houses shall be obtained according to replacement value, and no building depreciation charge is allowed. Available materials belong to the relocatees, and they also can use them to build new house. 5. In the process of implementation the effective measures are adopted by resettlement organ at all levels Living allowance 100 yuan/person to help the vulnerable (the old, the handicapped, the weak, and woman-headed family: the subsidy of building new houses for specially poor family is 3000 yuan per household, the living allowance for the vulnerable family is 600 yuan per person. And sub-district and residence committee will help the resettlers Temporary house 200 yuan/person to re-build and move to new houses under the circumstances of holding counsel with them. subsidy 6. Compensation fee for houses will be paid to the resettlers before their purchasing new houses. Before their purchase, the resettlers may live in their original houses and they will not be forced to move before the stipulated date. 7.The resettler can lodge appeal for any aspects of the resettlement, including the compensation standard. No expense shall be paid to the organ dealing with resettlers’ appeal. Second Moving 150 yuan/person Charge

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Compensation Standard (yuan/Unit) Affected Responsible Affected Type Policy of Land Acquisition and Resettlement Compensation Object Agency Standard (amplitude) Item 1. All enterprises and institutions affected by the project are planned to be relocated and rebuilt by themselves, and the PMO shall discuss with the related units about the compensatory standard and relocating and rebuilding time. All the costs needed by the construction shall be listed into the The compensation standards for steel-concrete general budgetary estimate of the project and be paid by the PMO 4 months before the structure and brick-concrete structure are 471 commencement of corresponding project. Labor resettlement in the course of resettlement shall yuan/m2 and 362 yuan/m2 respectively; the be paid in unpredictable costs by the PMO. The labor force arrangement cost occurred during the compensation unit price of special facilities shall Non-residential City PMO, City Enterprises resettlement will be paid by the project executive agency using the contingency. be calculated as that of the special facilities of Houses and Land and 2. All the non-residential houses are compensated according to the mode of cash resettlement in urban residential houses. Special Resources Institutions principle. The compensation standard for construction section shall be executed with reference to the Facilities Bureau replacement values of the urban residential houses, and no depreciation will be deducted. These compensation rates will be used by the resettlement office as the lowest limit. The implemented compensation rates will be based on actual appraised values in the project areas. 3. Moving allowance for enterprises and institutions during the course of relocation is calculated at 25 Demolition subsidy 25 yuan/m2 yuan/m2 according to the area of non-residential house needed to be removed. However, since the affected enterprise had already closed, no moving allowance will be provided.

Land used by industry 55760 yuan/mu or commerce. 1. The paid transfers of land ownership are adopted to industrial land within project range. Its compensation standard shall be executed according to the detailed methods of the similar project in City PMO, City Permanent Xiangtan City. State-owned Land Land used by Counted into the urban land 2. Urban residential land acquisition in project area shall be compensated according to the mode of cash land Resources enterprises. houses. acquisition resettlement. Among them, the section of land is compensated as 62 yuan/m2. Bureau 3. In the project, for the land acquisition of other stated-owned land such as urban unused land or flood land, the volunteer transfer is adopted to obtaining owner ship of state-owned land. Appropriate without Other land use compensation

1. For the project construction land acquisition, the village shall obtain the land compensation cost and resettlement subsidy paid by the land acquisition unit; and relocatee will obtain young crop cost and Paddy Field 27880 yuan/mu ground adhesion matter compensation cost an so on; What’s more, If the land readjustment or the land reclamation is carried out inside the villager’s group to make the affected farmers by land acquisition City PMO, City obtain land or other means of production, the land compensation fee and the resettlement subsidies Dry Farmland 19680 yuan/mu Permanent Collectively Land should be controlled for utilization by the villager’s group collective. On the contrary, if there is no land owned land Resources possibility to carry out land readjustment or land tidying or development, and the relocatee has not got acquisition Bureau any production materials, the village group shall pay the resettlement subsidy and 75% of land Pond 27200 yuan/mu compensation to them, and the remaining land compensation shall be managed and used by the village group collective. 2. Land compensation fee and resettlement subsidy shall be used in the livelihood rehabilitation of Residential land 24200 yuan/mu relocatee in the project construction, such as construction of farmland water conservancy facility,

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Compensation Standard (yuan/Unit) Affected Responsible Affected Type Policy of Land Acquisition and Resettlement Compensation Object Agency Standard (amplitude) Item rebuilding of rural infrastructure and adjustment of agriculture structure and so on. 3. The compensation standard for cultivated land acquisition is calculated based on the average output value per mu of the previous three years before the land acquisition. Compensation of cultivated land acquisition and multiple of resettlement subsidy shall be in accordance with the quantity of per capita cultivated land area before the land acquisition in project area, and shall be determined according to Land Administration Law of the PRC and Methods of Hunan Province for Implementing the Land Administration Law of PRC. Requisition of garden land, villagers’ housing plot and other unused land shall be compensated properly with reference to the stipulation of cultivated land acquisition. 4. The land compensation fee shall be paid to the village collective unit or land contractor before the land Beach land 13440 yuan/mu acquisition. 5. Land redistribution shall be carried out in slack season. For all the farmers that lost the land because of the project, they will acquire new land through land redistribution. 6. The migrant workers who rent cultivated land in the project area will obtain the young crops compensation for land acquisition. During the implementation of the resettlement in the project, if the migrant workers are willing to stay at this locality for earning a living, the project executive agency will help them rent the near land for cultivation.

1. The compensation fee for temporary land includes young crops cost, land loss compensation cost and Paddy Field 7519 yuan/mu reclamation cost. Time limit of the temporary land is set at two years. If the temporarily land acquisition exceeds two years, the acquisition procedure should be handled again. 2. The compensation fee for land loss is mainly used for compensating total amount of output or income of landowner from the original land. And the compensation fee for land loss shall be determined according Dry Farmland 6319 yuan/mu City PMO, City to the annual output value and occupation time: paddy field is 3400 yuan/mu, dry farmland is 2400 Temporary land Land Contractor yuan/mu, timber forest is 1360 yuan/mu; shrub land is 1020 yuan/mu; young crop costs are as follows: use Resources paddy field is 680 yuan/mu, dry farmland is 480 yuan/mu, timber forest is 680 yuan/mu and shrub land is Bureau 510 yuan/mu. Timber Forest 2040 yuan/mu 3. After the construction, the land occupied shall be rehabilitated and returned to the village affected by the project. Temporarily-occupied dry farmland shall be reclaimed and the reclamation cost is 3439 yuan/mu. Shrubbery Forest Land 1530 yuan/mu

Hasty road 100000 yuan/km City PMO, All the special facilities affected by the project shall be rehabilitated and rebuilt according to the actual Owner of relative conditions affected by the project, original standard, scale and function. The PMO shall plan the Special facility the property professional investment according to the rehabilitation plan, and supply proper compensation funds for the each Culvert gate 10000 yuan/place right departments department in charge of special facility to organize the implementation. 10KV high-voltage line 50000 yuan/km

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Compensation Standard (yuan/Unit) Affected Responsible Affected Type Policy of Land Acquisition and Resettlement Compensation Object Agency Standard (amplitude) Item 380V low-voltage line 27500 yuan/km

Transmission facilities 3000 yuan/place

Telephone line 50000 yuan/km

Cable TV line 35000 yuan/km Electricilty-irrigated dock 25000 yuan/place machine

78 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

5. Resettlement and Rehabilitation Measures

5.1 Resettlement and Rehabilitation Objectives 5.1.1 General Objectives Make proper compensation and appropriate resettlement in order to insure the productivity, income level and living conditions of the affected people could be restored or improved. 5.1.2 Resettlement Tasks 1) Economic Rehabilitation Populations As the projects are distributed in a line along the Ling River, most of the population affected will only lose part of their lands. According to the detailed survey, the permanent land acquisition of the project affects 54 households with 228 persons. The permanent land acquisition is 55.87 mu, with average land loss per capita of 0.34 mu. People who need economic rehabilitation refer to those who would lose their entire farmland holding. It is calculated by dividing amount of acquired farmland in each affected village group by the per capita farmland holding in that village group. The calculation formula is as follow: K= K’×S / S’ Where: K stands for the number of people who need economic rehabilitation in every villagers group. S stands for the area of occupied cultivated land due to the project in every villagers group; S’ stands for the existing per capita cultivated land in every villagers group; K’ stands for the number of existing agricultural population. According to the above formula, there are 103 agricultural populations need economic rehabilitation. The calculation of economic rehabilitation population in every villager group in the project affected area is shown in details in Table 5.1-1. 2) Resettlement Population of House Demolition and Relocation According to on site investigation, the houses to be demolished are distributed in two towns (subdistrictus) six villages (residential committees); 131 houses with 472 persons will be relocated, all of them are non-agricultural population. Area of demolished residential houses is 12932.41m2, and relocation and house resettlement are needed.The statistics of resettlement population of house demolition and reconstruction in the project area is shown in details in Table 5.1-2.

79 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Calculation Table for the Population Resettled by Economic Rehabilitation in Xiangtan City Urban Flood Control Project Table 5.1-1 Existing Cultivated Land Cultivated Cultivated Land Existing Population(Person) (mu) Land Per Occupied by theProject (mu) Remaining Agricultural Capita Occupatio Cultivated Population in Township Village City Grou For n Land Per need of (Sub-district (Residential Agricultura Non-agricultura Padd Dry Padd Dry (District) p Subtota Agricultural Subtota Ratio Capita Economic ) Committee) l l y Farmlan y Farmlan l Population l (%) (mu/person Rehabilitatio Population Population Field d Field d (mu/person ) n (person) ) Chengna n District 1 4 8 1624 901.7 739.1 162.7 4.62 55.87 27.3 28.57 51.23 4.24 103

Dongshan 4 8 1624 901.7 739.1 162.7 4.62 55.87 27.3 28.57 51.23 4.24 103

Zhangjiang 1 280 83 68 15 0.3 6.1 3 3.1 7.35 0.27 20

1 280 83 68 15 0.3 6.1 3 3.1 7.35 0.27 20

Tazi 2 368 215.5 176.7 38.9 1.18 17.3 8.4 8.9 15.9 1.08 30

1 156 91.4 74.9 16.5 0.59 6.8 3.1 3.7 7.44 0.54 12

2 212 124.1 101.8 22.4 0.59 10.5 5.3 5.2 8.46 0.54 18

Dongshan 4 777 447.9 367.2 80.7 2.36 19.97 10 9.97 19.93 2.17 37

3 221 72.2 59.2 13 0.33 5.77 4.7 1.07 7.99 0.29 17

4 155 109.3 89.6 19.7 0.71 7.7 4.3 3.4 7.04 0.66 11

5 200 128.8 105.6 23.2 0.64 3.5 0.5 3 2.72 0.59 5

6 201 137.6 112.8 24.8 0.68 3 0.5 2.5 2.18 0.63 4 Chengzhon g 1 199 155.3 127.2 28.1 0.78 12.5 5.9 6.6 8.05 0.72 16

10 199 155.3 127.2 28.1 0.78 12.5 5.9 6.6 8.05 0.72 16

80 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Statistics for the Population Resettled by House Demolition and Relocation in Xiangtan City Urban Flood Control Project Table 5.1-2 Population Affected by House Population Affected by House Village Removal Demolition and Relocation Housing Sub-district （Residential Number of Number of Number of Number of Remarks Type Committee） Household Person Household Person （Household） （Person） （Household） （Person） Urban 1 2 114 397 114 397 Residence Dongping 2 114 397 114 397 Hengjie Residential 63 207 63 207 Committee Wanfu Residential 51 190 51 190 Committee Rural 1 4 17 75 17 75 Residence Dongshan 4 17 75 17 75 Zhangjiang 1 4 1 4 Village Tazi Village 5 21 5 21 Dongshan 9 43 9 43 Village Chengzhong 2 7 2 7 Village Total 2 6 131 472 131 472

5.1.3 Affected Population Due to the Temporary Land Acquisition The areas of temporary acquisition lands in this project total 390.9mu, including paddy field of 42.7mu, dry land of 41.1mu, timber forest of 134.4mu, shrubbery forest land of 146.8mu, and waste grassplot of 25.9mu. Two townships (towns, sub-districts) and 5 administrative villages are involved in, while, no population is affected.

5.2 General Scheme of Rehabilitation The construction of Xiangtan City Flood Control Project, Hunan Province only affect few houses and land in the villages (residential committees) along the flood-control dike and has no serious negative effect on the productivity and living conditions in most of the affected villages (residential committees). The opinions of relocatees will be gathered widely by means of participatory planning in the affected townships (Sub-districts) and villages. According to the opinions and suggestions held by the relocatees and the situations in the affected areas, the general scheme of restoration has been established as follows:

1) Based on the general urban planning of Xiangtan City, in principle, no housing plot will be arranged for affected urban residents, the resettlement of exchanging property rights and cash compensation will be mainly adopted for resettlement.

2) Generally, residents who are impacted by land acquisition (population need economic rehabilitation) will be resettled in the existing village. By means of adjusting surplus cultivated land, new production activities will be developed and resettlement subsidy will be distributed to achieve economic rehabilitation based on the land.

81 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

5.3 House Relocation 5.3.1 Relocation Arrangement

In May, 2006, the resettlement design unit carried out the on-site investigation, optimization and demonstration in collaboration with City PMO and the local governments at various levels. According to the practical situations of project-affected area and resettlers’ opinions, the mode of scattered resettlement in their existing village has been adopted for the resettlers’ relocation in this project.

A contract is signed between the relocatee and the project sponsor or the land acquisition implementation agency. The resettlers have the right to choose resettlement method and resettlement locations upon their willingness.

5.3.2 Principle and Procedure for Selecting Resettlement Sites 1) Principles The aim of rehabilitation of housing condition is to provide the relocated households with safe, convenient and graceful living environment. ① The new residential areas should have good terrain and geological conditions and reliable drinking water source. ② The location of new residential areas should be compatible with the economic rehabilitation plan. ③ The location of new residential areas should be convenient for production, living and management. ④ Save land, especially the cultivated land, as much as possible. ⑤ Take the future population increase into account and leave rooms for further development. ⑥ The distribution of houses in the residential areas should be based on the terrain conditions and take the lighting, ventilation, sanitation and greening conditions into account. ⑦ The design of houses should meet the requirements of the relocatees and their financial abilities.

2) Procedures Based on the above principles, after on-site investigation and analyzing the terrain, geological, traffic, power and water source conditions, the location of new residential area is selected after negotiation with representatives of relocatee and local government, taking the relocatees’ living and production conditions into account.

5.3.3 Planning of Demolition and Housing

The project relocation will impact 131 households of 472 persons, including 114 households of 397 urban residents as well as 17 households of 75 rural residents, and Dongping town and Dongshan Sub-district will be involved in. based on the general urban planning of Xiangtan City, no housing plots will be provided for urban relocates. Instead, cash compensation are used for resettlement of the affected residents.

According to the investigation of resettlers’ will, 131 demolition households with 472 persons would like to select the cash compensation resettlement for their own houses purchasing. The house of these demolition households are compensated by cash compensation according to compensation standard, and the house resource information will be provided by local government for the demolition households’ selection. During the implementation period, once the resettlers who like the exchange property rights occurred, the method of exchange property rights are adopted, the house with the same price of replacement value are provided by implementation agency for the resettlers’ selection.

In recent years, the real estate market in Xiangtan City increases rapidly; there are many houses at varied prices for the demolition resettlers’ selections. Most of the resettlers like to buy new houses which are close to the existing residences due to acquaintance of the environment and its convenient location for obtaining the employment and going to school; some resettlers buy new houses in other districts in Xiangtan City due to some human environment factors of moving to the place close with the relatives’ homes or working places, as well as changing the rehabilitation place.

As for rural villagers, as the existing living conditions are scattered generally, the scattered resettlement will be mainly adopted in the planning. They will be resettled in the site with convenient traffic and power supply and

82 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

good water sources which is out of 50m of the dike line, and villagers will use compensation funds to construct or purchase houses. According to common demands and actual conditions of resettlers, only lump-sum compensation is required for relocated residential houses and houses of government departments and institutions, and then, they will purchase commercial houses by themselves. More details about demolition and housing in the project area will be shown in Table 5.3-1.

Planning Table for the Population Resettled by House Removal in Xiangtan City Urban Flood Control Project Table 5.3-1 Resettled by Currency Village Resettled Population in Total Town Compensation City（District） （Residential (Sub-district) Number of Number of Number of Number of Committee） Household Person Household Person Xiangtan City 1 2 114 397 114 397 Dongping Town 114 397 114 397 Sub-district Hengjie Residential 63 207 63 207 Committee Wanfu Residential 51 190 51 190 Committee Xiangxiang City 1 4 17 75 17 75 Dongshan 17 75 17 75 Sub-district Zhangjiang 1 4 1 4 Village Tazi Village 5 21 5 21 Dongshan 9 43 9 43 Village Chengzhong 2 7 2 7 Village Total 131 472 131 472

5.3.4 Infrastructure and Public Facilities 1) Cash Resettlement The residents resettled by cash compensation can only purchase commercial housing or affordable economic housing. The construction of commercial housing or affordable economic housing in Xiangtan City shall all be approved by the planning department of Xiangtan City beforehand, and be equipped with supporting facilities and public infrastructure facilities, of which the public traffic facility is just one aspect given the preference, the supermarket, store, school, kindergarten shall be built as a necessity. Therefore the residents, who chose the cash resettlement method, will not be troubled by daily living inconvenience, and, the residents will certainly inspect the construction situations of surrounding and the supporting facilities of residential area by themselves.

5.3.5 Assistance in Resettlement The land acquisition and resettlement implementation agency are responsible for assisting resettlers at every aspect during the entire process of the resettlement: 1) Understand and try to satisfy the resettlers’ needs before the resettlement. 2) Help the resettlers dealing with their troubles such as arranging the vehicles and assisting the remove during the process of resettlement. 3) To know that whether resettlers satisfies with the living conditions in their new houses and where are their difficultoies and try to solve their problems in time after the resettlement.

83 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

5.4 Rehabilitation Planning for Resettlers 5.4.1 Environmental Capacity Analysis The environmental capacity of resettlement area is refers to the number of resettlers that an area can support and absorb with normal economic and ecological sustainability. The scope of this investigation on resettlement’s environmental capacity is based on the rehabilitation scheme that is proposed in Resettlement Plan.

As majority of the farmland in project areas have been in possession of others, the agricultural populations who finally need rehabilitation by land have to share original land resources with residents in the same villages, and are guaranteed to get mutual benefit with local residents. To achieve this objective, a series of measures should be taken to increase agricultural income, such as increase investment on agriculture, improve fertility of field, change variety of crops, transform low-yield fields and change dry farm lands into paddy fields.

The analysis on the change of land holding among affected villages and groups (Table 5.2.1) indicates: the current cultivated land per person in 8 groups of 4 villages is 0.56mu, which will be reduced to 0.51mu after land acquisition, decreased by 0.05mu per capita or 8.24%. Of which:

1) After land acquisition, among affected 8 groups of 4 villages, the occupation proportion of the cultivated land of 1 group is between 10%~20%, and occupation proportion of the cultivated land of 7 groups is lower than 10%.

2) Among 8 villager’s groups, after land acquisition, the surplus cultivated land per capita of 6 villager’s groups is above 0.5mu, with 10 groups in Chengzhong Village, that is, 0.72mu. Among these affected groups, a large number of farmlands are in low yield because of low investment, lack of management, poor soil fertility, simple crop, and incomplete irrigation facilities. Therefore by fully utilizing potential of existing farmland, it is feasible to improve the level of production and the unit yield and achieve the objective of rehabilitation. The measures, including increasing investment on low yield field, improving soil fertility, adjusting farming system, replanting improved crops variety, building irrigation facilities, and reinforcing field management, shall be adopted to full exploitation for the potential in increase of production level and unit area yield of current cultivated land, so as to reach the resettlement target value.

3) After land acquisition, the surplus cultivated land per capita of 2 groups is below 0.5mu. Since for those agricultural populations who need rehabilitation by farmland, they have to share limited land resources with residents in the affected villages, the limited land holding makes it hard to guarantee mutual benefit for both resettlers and local residents. Concerning this, other related measures are carried out to provide economic rehabilitation for those village groups with per capita farmland below 0.5 mu/person after land acquisition, which include providing cash compensation to the affected persons for other economic activities development (such as production structure adjustment, green house vegetables development) or non-agricultural economic development (such as animal husbandry development), so as to increase their income, as well as improve their poverty situation.

5.4.2 Standards of Production Resettlement

According to the agricultural means of production status and local agricultural production level in project area, the input and output level analysis has been conducted for the economic rehabilitation project for resettlers in project area. The economic rehabilitation strategy was established. For those village groups with sufficient land holdings after land acquisition (6 village groups out of 8 with per capita land holding being 0.5 mu or more after land acquisition), land readjustment will be carried out, which will ensure adequate landholding will be available for all affected peoples. For those village groups with sufficient land holding and market conditions for vegetable greenhouse development, greenhouse vegetable will be developed for economic rehabilitation, which is based on rehabilitation of one person by developing each greenhouse with 0.25 mu of land area. In the conditions of few surplus cultivated land no land adjustment, the affected villagers are accustomed to make a living on the farmland and lack other skills of making a living, therefore they would like to keep their traditional production mode and means of living. Therefore, barren mountainous region will be selected nearby for cultivated land development, in combination of projects to be implemented by land and resources department, the land will be leveled, and the cultivated land to be developed per capita is determined based on 0.5mu/person.

84 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

5.4.3 Economic Rehabilitation Planning In May 2006, the resettlement design unit and the city PMO, together with the relevant department, conducted the on-site survey on the project affected land, water surface, and other natural resources. In the course of resettlement planning and project impact investigation, the consultation meeting with the project affected township (sub-district), village cadres, and some resettler representatives have been held, and the economic rehabilitation schemes for resettlers was discussed.

Through the analysis on the geographic locations, land resources ownership, income structure of local residents, and based on the extensive consultation with the resettlers, the overall economic rehabilitation scheme was developed as follows: in-group adjust cultivated land for 33.55 mu to resettle 66 persons; The cultivated land of 4.6mu should be developed, (the surplus cultivated land per capita of 1 group of Zhangjiang Village after land acquisition is 0.27mu/person, if 0.5mu/person should be achieved, 0.23mu should be developed per capita), and 20 persons could be resettled; greenhouse vegetable of 4.25mu should be developed, and 17 persons could be resettled. See Table 5.4-1 for details about resettlement by economic rehabilitation in groups.

85 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Economic Rehabilitation of Resettlers in Xiangtan City Urban Flood Contorl Project Table 5.4-1 Adjustment of Cultivated Land Developing Greenhouse Remained Population Developing Cultivated Vegetable Village Cultivated in need of Within the Group City Sub-distric Land （Residential Group Land Per Economic Number of Number of (District) t Number of Resetted Committee） Capita Rehabilitation Area Resetted Area Resetted Area People (mu/person) (Person) (mu) People (mu) People (mu) (Person) (Person) (Person) Chengna n District Dongshan 4 8 0.51 103 33.55 66 4.6 20 4.25 17 Zhangjiang 1 0.51 20 4.6 20 1 0.27 20 4.6 20 Tazi 2 0.27 30 16.2 30 1 0.54 12 6.48 12 2 0.54 18 9.72 18 Dongshan 4 0.54 37 8.85 20 4.25 17 3 0.53 17 4.25 17 4 0.29 11 3.19 11 5 0.66 5 3.3 5 6 0.59 4 2.36 4 Chengzhong 1 0.63 16 8.5 16 10 0.72 16 8.5 16

86 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

1) Adjust Cultivated Land Within the Affected Groups According to survey, 6 villager groups affected by project in project area would like to choose the economic rehabilitation mode of re-allocating the cultivated land in the group. The land acquisition impact is not evenly affected within these village groups. The cultivated land per capita after land acquisition is within the range of 0.54mu per person to 0.72mu per person. The affected villagers are accustomed to make a living on the farmland, and lack other skills of making a living, they would like to keep their traditional production mode and means of living. In the overall project planning, there are 33.55mu cultivated land will be adjusted within the villager group to reselle 66 resettlers.

After adjustment of cultivated land, the cultivated land per person in this group will be reduced slightly. In order to keep relocatees’ income level increasing as other villagers’, it is necessary to develop further potential capacity of the remaining cultivated land. By following the principle of making up shortage of quantity with improved quality, the yield and output value of the remaining cultivated land will be enhanced. The cultivated land in the project scope are mainly located along the river, which are are often inundated by flood, the actual yield is considerably low, and the flood standards will be improved after project implementation. In this project, together with the implementation of agricultural structure adjustment, some agricultural technicians shall be invited to provide agricultural technique training for rural relocatees and to guide them to adopt the measures of “improving low yield land and changing dry farmland into paddy field”. As a result, the unit output value and the cultivated land capacity could be improved, which means that under land readjustment among affected village groups, all affected peoples could have successful economic rehabilitation and resotred their income and livelihood.

2) Development of Cultivated Land In the project affected area, after land acquisition, the cultivated land per capita of agricultural population in 1 group of Zhangjiang Village is 0.27mu/person, which is lower than that of Hunan Province, accordingly, adjustment within the group could not be conducted. The affected villagers are accustomed to make a living on the farmland and lack other skills of making a living, therefore they would like to keep their traditional production mode and means of living. Therefore, barren mountainous region will be selected nearby for cultivated land development, in combination of projects to be implemented by land and resources department, the land will be leveled, and the cultivated land to be developed in the planned group is 4.6mu, and 20 resettlers needing resettlement.

3) Development of Greenhouse Vegetable In the project affected area, the cultivated land per capita of agricultural population in 3 groups of Dongshan Village is lower than that of Hunan Province, according to the selection of most relocatees, in these groups the affected households are rehabilitated with cash compensation but not cultivated land adjustment. The affected households will use the compensation fee to develop green house vegetable, which can not only meet the urban residents’ requirement of Xiangtan City but also well solve the relocatee’s production to increase their income. In the overall project planning, 4.25mu lands will be used to develop the counter season and nuisance-free green house vegetables, so as to relocate 17 agricultural persons.

5.4.4 Investment of Economic Rehabilitation 1) Cultivated Land Adjustment Under the project, the cultivated land will be adjusted with payment, which will be calculated based on the unit compensation price of 27880yuan/mu paddy field in the project area. It is proposed to adjust paddy field of 33.55mu, needing land adjustment fee of 0.9354 million yuan.

2) Development of Cultivated Land The main resettlement mode of cultivated land development is to directly give cashes to affected rural households needing resettlement, and the affected rural households will use these fees to carry out compensated cultivated land reclamation. According to land loss of affected rural households with direct cash compensation, the required investment is 0.1282 million yuan totally.

3) Development of Greenhouse Vegetable As the cultivated land per capita will be decreased after adjustment of cultivated land in project area, the land compensation fund shall be used, and the measures for production development, such as improvement of

87 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

planting structure and strengthening the field management, shall be made to offset the loss due to partial cultivate lands occupied. According to the analysis on unit prices for projects to be developed, four greenhouses can be set on the land of one mu, based on 0.25mu for each greenhouse, and RMB 26608 yuan shall be invested for changing the paddy filed of one mu to vegetable greenhouse, based on the construction cost of RMB 6652 yuan for one greenhouse, totaling RMB 0.15 million. For details, see Table 5.4-2.

Table 5.4-2 Analysis on Unit Price Invested for Changing Dry Land to Vegetable Greenhouse Item Unit Unit price (yuan) Qty. Amount (yuan) Notes 1. Project investment 4715 1.1 Shed Piece 4515 1 4515 1.2. Labor force Work-day 20 10 200 Including site clearance and shed frame erection 2. Supporting facilities 125 2.1. Water resource Yuan 125 facilities 3. Operation cost 1193 3.1 Seed Yuan 720 3.2 Farm manure T 140 2 280 3.3 Chemical fertilizer Kg 1.24 55 68 3.4 Medicine kg 125 4. Technical service fee 302 5% of total of Items 1~3 5. Contingency cost 317 5% of total of Items 1~4 6 Total 6652

4) Total Investment for Economic Rehabilitation of Resettlers According to above analysis and calculation, the funds of 1.5893 million yuan are needed for economic rehabilitation of the project area. For details, please see Table 5.5-4.

Estimate of Investment for Economic Rehabilitation of Resettlers Table 5.5-4 Item Unit Unit price (yuan) Qty. Investment (10000 yuan) Remarks Total 117.67 1. Adjustment of paddy field 106.36 1.1 Adjust withint the group mu 27880 33.55 93.54 1.2 Development of cultivated land mu 27880 4.6 12.82 2. Development of Greenhouse Vegetable mu 26608 4.25 11.31

5.4.5 Balance between Resettlement Budget and Production Investment According to the relevant resettlement articles written as follows: “Land compensation fee and resettlement subsidies are used by the units with land acquired for production rehabilitation and development, and arranging the employment for the surplus labor forces caused by the land acquisition and livelihood subsidies for people incapable for work. It can also be contracted to the city (city) and be unifiedly allocated by the city (city) for land exploitation, resettlers’ production and livelihood resettlement for resettlers. But these special funds must be specially used. The funds shall not be privately shared or used for other purposes.” In case that the land compensation and resettlement subsidies cannot meet the requirements of resettlers’ production and resettlement, the resettlement subsidies can be increased according to the situation. Therefore, the land compensation fee and resettlement subsidies, as the only fund resource of the resettlers’ production and resettlement, must be equal to or a little more than the total investment of production resettlement.

Based on the economic rehabilitation planning, 103 persons need economic rehabilitation, and the investment of 1.1767million yuan is required for production development. The compensation fee and subsidy for permanent cultivated land acquisition of the project area is 2.5953 million yuan, high than investment required for its economic rehabilitation. This indicates that the land compensation standard is relatively suitable, and can meet the fund requirement of resettlers’ production resettlement. The fund margins can be unitedly used for continuous development by each village group, such as launching village-owned enterprises, land resources development

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and used as fund investment for other projects as improving low-yield farmland and converting dry farmland to paddy fields, etc., so as to ensure the resettlers’ living standard to reachs or exceed their original standard.

5.4.6 Rehabilitation Measures for Resettlers’ Economic Income The project implementation agency will offer help and support to the resettlers as much as possible during the whole course of resettler livelihood recovery in this project. They include:

1) Strengthen the training of production skills for resettlers and invite experienced specialists to train the resettlers to develop cultivation industry and animal husbandry industry.

2) Give first priority to the resettlers when hire labour for the project construction. According to the design of this project construction organization, the project construction will totally take up 0.5079 million working days with labor force, and will afford some employment chances including land levelling and landscape works. Though some project tasks will be temporary, the income of these employees, according to income survey of the same work type in Xiangtan City, will be RMB 1200~1600 Yuan/month. So the local resettlers will be given short-term incomes which will be useful for enhancing living level of affected people and restoring their income and livelihoods.

3) Give priority to the resettlers when hiring labour for the project construction. So, the local resettlers will be given short-term incomes which will be useful to enhancing living level of affected people and restoring their income and livelihoods. Moreover, the local government will give the financial encourage policies, such as, tax reduction and subsidy, to those resettlers undertaking the secondary and tertiary industries, and the bank will be give priority to their loans.

5.5 Economic Rehabilitation Planning for Key Resettlement Villages Due to the different influence caused by the project construction differentiating from one village to another in the project area as well as the different resources structure and infrastructure conditions in each village, accordingly, resettlement schemes of each village are different. As resettlement planning is conducted based on resettlement village with economic rehabilitation tasks, the resettlement planning schemes of 3 key villages with land occupation over 10mu (excluding impact of temporary land occupation) are described as follows:

5.5.1 Tazi Village of Dongshan Sub-district 1) Basic Conditions Tazi Village is an administrative village under jurisdiction of Dongshan Sub-district of Chengnan District, and it is located at the left bank of Xiangjiang River. With 18 villager’s groups under the jurisdiction of the village, there are 817 households of 3169 persons totally, including: 6 households of 24 non-agricultural persons and 811 households of 3145 agricultural persons. In 2005, the total economic revenues of the village were 12.27 million yuan, including the agricultural revenues of 3.56 million yuan, accounting for 29.01% of the total revenues, with the non-agricultural revenues as its main economic source. By the end of 2005, the net income per capita was 2798yuan.

Tazi Village takes paddy field plantation as the main part of agriculture. The village has paddy field of 1427mu, and dry land of 374mu, and the current cultivated land per capita is 0.57mu.

2) Impact by Land Requisition The project construction should acquire the cultivated land of 17.3mu of the village, and 2 villager's groups are involved in. After land acquisition, the cultivated land per capita of 2 villager’s groups is 0.54mu, decreased by 0.05mu, and the reduction proportion is 8.03%. See table 5.1-1 for details of the acquisition of the cultivated land.

3) Economic Rehabilitation Measures The permanent land acquisition of Tazi Village will actually impact 5 households of 21 persons, 30 persons need economic rehabilitation, and 5 households of 21 persons need house relocation and construction. Based on widely collecting resettlers’ opinions and actual condition of the village, the resettlers of the village would be resettled in accordance with the following measures:

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—— Economic Rehabilitation Measures. The cultivated land per capita after land acquisition of 2 affected groups is above 0.5mu, the affected villagers are accustomed to make a living on the farmland and lack other skills of making a living, therefore they would like to keep their traditional production mode and means of living. It is planned to take the mode of adjusting local cultivated land within the gruop to resettle the affected resettlers, based on population needing economic rehabilitation in these groups, calculating according to standard for surplus cultivated land per capita, cultivated land of 16.2 mu should be adjusted, and 30 persons need resettlement. The land compensation fee and subsidies will be fully paid to the villager’s groups based on relevant state policies, and two thirds villagers will need to agree on these measures.

—— Relocation Resettlement Measures. Based on willingness of resettlers, the village committees will choose cash compensation mode for 5 relocated households of 21 resettlers. The local government will provide house sources, and then they could purchase new houses by themselves. During project implementation, once resettlers who are willing to accept resettlement of exchanging property rights occur, the implementation agency for project land acquisition and relocation will provide houses with the same replacement price for selection, and the resettlement of exchanging property rights will be carried out.

5.5.2 Dongshan Village of Dongshan Sub-district 1) Basic Conditions Dongshan Village is an administrative village under jurisdiction of Dongshan Sub-district of Chengnan District, and it is located at the right bank of Xiangjiang River. With 14 villager's groups under the jurisdiction of the village, there are 703 households of 2752 persons totally, including: 3 households of 11 non-agricultural persons and 700 households of 2741 agricultural persons. In 2005, the total economic revenues of the village were 12.71 million yuan, including the agricultural revenues of 3.39 million yuan, accounting for 26.67% of the total revenues only, with the non-agricultural revenues as its main economic source. By the end of 2005, the net income per capita was 3190 yuan.

Dongshan Village takes paddy field plantation as the main part of agriculture. The village has paddy field of 1389.7mu, and dry land of 285mu, and the current cultivated land per capita is 0.61mu.

2) Impact by Land Requisition The project construction should acquire the cultivated land of 19.97mu of the village, and 4 villager’s groups are involved in. After land acquisition, the cultivated land per capita of 4 villager’s groups is 0.53mu, decreased by 0.05mu, and the reduction proportion is 8.19%. See table 5.1-1 for details of the acquisition of the cultivated land.

3) Economic Rehabilitation Measures The permanent land acquisition of Dongshan Village will actually impact 21 households of 90 persons, 37persons need economic rehabilitation, and 9 households of 43 persons need house relocation and construction. Based on widely collecting resettlers’ opinions and actual condition of the village, the resettlers of the village would be resettled in accordance with the following measures:

——Economic Rehabilitation Measures. The cultivated land per capita after land acquisition of 1 affected groups in Dongshan Village is 0.29mu, accordingly, adjustment within the group could not be conducted. In consideration of that the affected villagers are accustomed to make a living on the farmland and lack other skills of making a living, and there exists the advantages and market demand of development of greenhouse vegetable, it is planned to develop greenhouse vegetable of 5.5mu and resettle 22 persons; the cultivated land per capita after land acquisition of other 3 affected groups is above 0.5mu, It is planned to take the mode of adjusting local cultivated land within the group to resettle the affected resettlers, based on population needing economic rehabilitation in these groups, calculating according to standard for surplus cultivated land per capita, cultivated land of 22.2mu should be adjusted, and 42 persons need resettlement. The land compensation fee and subsidies will be fully paid to the villager’s groups based on relevant state policies, and two thirds villagers will need to agree on these measures.

—— Relocation Resettlement Measures. Based on willingness of resettlers, the village committees will choose

90 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

cash compensation mode for 22 relocated households of 75 resettlers. The local government will provide house sources, and then they could purchase new houses by themselves. During project implementation, once resettlers who are willing to accept resettlement of exchanging property rights occur, the implementation agency for project land acquisition and relocation will provide houses with the same replacement price for selection, and the resettlement of exchanging property rights will be carried out.

5.5.3 Chengzhong Village of Dongshan Sub-district 1) Basic Conditions Chengzhong Village is an administrative village under jurisdiction of Dongshan Sub-district of Chengnan District, and it is located at the left bank of Xiangjiang River. With 15 villager's groups under the jurisdiction of the village, there are 752 households of 2985 persons totally, including: 6 households of 19 non-agricultural persons and 746 households of 2966 agricultural persons. In 2005, the total economic revenues of the village were 13 million yuan, including the agricultural revenues of 3.41 million yuan, accounting for 26.23% of the total revenues only, with the non-agricultural revenues as its main economic source. By the end of 2005, the net income per capita was 3025yuan.

Chengzhong Village takes paddy field plantation as the main part of agriculture. The village has paddy field of 1397.64mu, and dry land of 314.75mu, and the current cultivated land per capita is 0.58mu.

2) Impact by Land Requisition The project construction should acquire the cultivated land of 12.5mu of the village, and 1 villager's group is involved in. After land acquisition, the cultivated land per capita of 1 villager’s group is 0.72mu, decreased by 0.06mu, and the reduction proportion is 8.05%. See table 5.1-1 for details of the acquisition of the cultivated land.

3) Economic Rehabilitation Measures The permanent land acquisition of Chengzhong Village will actually impact 7 households of 30 persons, 16 persons need economic rehabilitation, and 9 households of 39 persons need house relocation and construction. Based on widely collecting resettlers’ opinions and actual condition of the village, the resettlers of the village would be resettled in accordance with the following measures:

——Economic Rehabilitation Measures. The cultivated land per capita after land acquisition of 1 affected group is above 0.5mu, the affected villagers are accustomed to make a living on the farmland and lack other skills of making a living, therefore they would like to keep their traditional production mode and means of living. It is planned to take the mode of adjusting local cultivated land within the group to resettle the affected resettlers, based on population needing economic rehabilitation in these groups, calculating according to standard for surplus cultivated land per capita, cultivated land of 8.5mu should be adjusted, and 16 persons need resettlement. The land compensation fee and subsidies will be fully paid to the villager’s groups based on relevant state policies, and two thirds villagers will need to agree on these measures.

—— Relocation Resettlement Measures. Based on willingness of resettlers, the village committees will choose cash compensation mode for 2 relocated households of 7 resettlers. The local government will provide house sources, and then they could purchase new houses by themselves. During project implementation, once resettlers who are willing to accept resettlement of exchanging property rights occur, the implementation agency for project land acquisition and relocation will provide houses with the same replacement price for selection, and the resettlement of exchanging property rights will be carried out.

5.6 Rehabilitation Plan for Affected Enterprises and Institutions The project land occupation will impact 7 enterprises and institutions in all. As only the houses of the employees and auxiliary production houses are impacted, the normal production or office of these enterprises and institutions will not be impacted. On the basis of seeking opinions from affected enterprises and institutions and local government, it is planned to select cash compensation for these affected enterprises and institutions. The construction unit is responsible for recovery of local infrastructures, and affected enterprises and institutions will adjust office houses or build new houses by themselves.

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5.7 Planning of Relocation and Reconstruction Special Facilities 5.7.1 Traffic Facilities The land acquisition will affect 3.5km of hasty road and 1 culvert. According to the project design, the reconstruction of mechanical farm road, if the existing road crosses the dike, will be built with up-dike road to settle transport problem on the both sides of the dike; while the existing road extends along the dike, the reconstruction will be in parallel and by moving back in existing locations. The rehabilitation of affected mechanical farm bridges and culverts has been included in the engineering design.

5.7.2 Transformer Facilities The land acquisition will affect high-voltage liens of 0.5km, low-voltage lines of 5.56km, and 4 transformers. According to the project design, the reconstruction of electric line, if the existing lines crosses the embankment, will be carried out by building more higher pole and line and crossing over the embankment; while it affects tendency of electric lines along the embankment, it will be relocated by changing its route and moving back in existing location. The reconstruction of transformer facilities will be designed and in charged by electric department in Xiangtan City after cash compensation.

5.7.3 Water Resources Facilities The project land acquisition will impact 5 electric irrigation stations. The planning for recovery of affected electric irrigation stations will be offered and implemented by hydraulic departments of Xiangtan City.

5.7.4 Post Facilities The project land acquisition will impact telephone lines of 2.38km and CATV lines of 2.67km. The reconstruction of broadcasting lines will be carried out by building pole and line higher and crossing over the dike, if the existing broadcasting lines cross the dike; while it affects tendency of broadcasting lines along the dike, it will be relocated by changing the route and moving back in existing location. After the cash compensation, the reconstruction of broadcasting lines will be undertaken by the post and telecommunication department in Xiangtan City. 5.8 Assistance to Affected Women There are altogether 248 affected-women in this Project who made a considerable contribution to their families and communities. To ensure rapid recovery and development of their livelihood, special assistance measures are provided to the affected-women in this Project. 1) Increased Women Status in Family and Fundamental Equality of Men and Women In the Project-affected area, there is no obvious division between women’s and men’s daily labor; daily labor is share by men or women depending of their time arrangement. As women play an integral role in daily lives, women’s labor accounts a large proportion of family income. According, the status of women in the family has become more sophisticated, and even most of the household budgets are hold in women’s hands. In decision-making on important matters, the attitude of women to a large extent determines the final decision outcomes. 2) Higher Enthusiasm n for Participating Public Affairs Through investigation, local women have higher enthusiasm for participating local public affairs. During the village general election, all women available with time were involved in the vote. Posts of Women Director in all villages are hold by women; posts of some Village Secretary or Director are also hold by women. In the survey and preparation of this resettlement plan, women showed more enthusiasm and attention to the Project and made lots of good suggestions. 3) Freedom in Love and Marriage Women of all ethnic groups are free to choose their partners. As long as mutual voluntary, minority women (men) can get marriage with Han men (women). There is no ethnic limit in marriage issue. 4) Equivalent Treatment in Entitling Education and Health Care Rights In general, people in the project affected area have lower education level; and the health conditions are not well developed. However, women share equal rights with men in entitling these rights. Due to historical reasons, the older group of women has lower education level than that of men; but with the development of society, extend of

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women’s education has been greatly improved and essentially shared the level with men. 5) Assistance from Village Committee (Community) Each project-affected village (community) regularly concerned with living conditions and restoring and development status of the affected women within the corresponding village (community). In case of any difficulty, a solution comes up promptly. If there’s only female member in the relocation household, villagers will be organized to provide assistance and enable women’s successful moving into new homes.

5.9 Vulnerable Groups Resettlement and Rehabilitation During the course of resettlement process, appropriate department of the project will specially pay attention to the resettlement of vulnerable group. To those affected vulnerable group mainly including elderly living alone, women headed households, and extremely poor families, in addition to standard compensation provided by the project, the project provided additional financial or physical assistance so that their rehabilitation and restoration of income and livelihood could be completed as soon as possible.

1) The project will afford special allowance for the families under the poverty line to help them construct houses and keep their living level. The allowance standard shall be subject to the actual situation and their needs. The detailed measures are given as follows: CNY 17800 yuan/household will be provided to the poor families for as the subsidy fee for the construction of houses; and CNY 1000 yuan/person will be provided as the subsistence allowance so as to help them overcome the difficulties during the demolition.

2) After implementation of the project, the affected households could apply for loan, and local village collectivities could provide guarantees for such application.

3) During the course of implementation of the project, local village collectives helped those vulnerable families with selecting new housing site, rebuilding new houses, and transferring to new houses construction. They include those elderly living alone, disabled, and women headed households.

For the 11 affected households with 28 persons, the allowance standard will be determined by the real situation and their needs. CNY 17800 yuan/household will be provided to the poor families for as the subsidy fee for the construction of houses; and CNY 1000 yuan/person will be provided as the subsistence allowance so as to help them overcome the difficulties during the demolition.

5.10 Social Security System for Land-lost Farmers Social security measures are adopted to protect rights and interests of the land-lost farmers in 6 villages (residential committees) in 2 sub-districts. Details are as follows: To land-lost farmers (men over 60-years old women over 55-years old), the local department of social security will deduct some fund from government revenues of land acquisition based on annual pension level and 15-year period, and make payment for the cost of pension insurance. Individuals are not responsible for the payment. Starting from the month of land-lost, pension insurance can be claimed. To land-lost farmers of men aged from 45 to 60 and women aged from 40-55, they will be included in township flexible employment pension insurance program. The difference between the flexible employment pension insurance contribution years and actual age of the land-lost farmer is the actual payment period. Annual payment is share by the government, the collective and the individuals. Payment part borne by the government comes from government revenues of land acquisition plus with special fiscal allocation; payment part borne by the collectives comes from land compensation and collective economic accumulation; payment part borne by the land-lost farmers are self-paid annually. The specific payment proportion is: 50% (government): 30%(collective): 20% (individual). The principle of “government safeguard as primary and personal safeguard as supplementary” is followed. After complete of the payment period, land-lost farmer can get their pension. To land-lost farmer of men below 45 year-old and women below 40-year old, local department of social security will focus on promoting labor re-employment. Special career training fund will be get from land compensation of the collectives. Land-lost farmer will be master new labor skills and get job opportunities. While these land-lost farmers get their jobs, they will be included in urban resident’s pension insurance program. With identification proof of land-lost farmer, they will get certain preferential treatment in payment of pension insurance.

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6. Institution and Responsibilities

6.1 Resettlement Engaging in the Resettlement Planning The investigation of demolition and resettlement planning of the project are completed jointly by the resettlement consultation unit organized by Key Project Management Office of Hunan Province Water Resources Department and related resettlement design units. Xiangtan City People’s Government and Water Resource Bureau assigned their staff to join in the work of investigation and planning. Township (town, sub-district), village (residential committee) and group affected by the project arranged the leaders and the masses to join in the investigation and planning.

6.2 Institutions and Responsibilities of Resettlement Implementation Management 6.2.1 Institutions Special resettlement Offices are set up in Hunan Provincial Project Office and Xiangtan City PMO in order to manage the resettlement implementation work. There are about 1 to 8 persons in Project Resettlement Office. Because of the high sociality of the resettlement work, the Project Management Office at all levels should be formed by the persons from government, land administration, planning department and agricultural department. A person with rich management work experience will be the leader of the project resettlement office (PRO).

There will be 1 to 2 main leaders in the townships (towns, Sub-Districts) and villages (residential committee) affected by the Project. One government leader and Land Administration Station leader will take charge of it in town, township and Sub-District, and village head or director will take charge of it in village and residential committee.

See Fig. 6.2-1 for the Frame of Project Resettlement Institutions.

6.2.2 Responsibilities 1) Project Resettlement Leading Group of Hunan Province Leaders from Hunan Provincial People’s Government, Hunan Plan Committee, Hunan Water Resources Department and Provincial Loans Project Execution Office who are in charge of the project will be appointed to constitute the “Project Resettlement Leading Group of Hunan Province”. And its main responsibility is to strengthen the leadership in the project, and to coordinate and to organize the relation of resettlement institutions at all levels.

94 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

ADB Loans Project Management Office of Hunan Province

Project Resettlement Leading Group of

Hunan Province

Project Resettlement Management Office of Hunan

Province

Xiangtan City ADB Loans Project Office

Independent Project Resettlement Resettlement Design Monitoring and Leading Group of Unit Evaluation Xiangtan City Institution Xiangtan City Project Resettlement Implementation

Management Office

Township (town, Sub-District) Resettlement Implementation

Management Office

Village Committee or Residential Committee and Village’s group

Resettlement Household

Fig. 6.2-1 Frame of Project Resettlement Institution

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2) ADB Loans Project Office of Hunan Province The main responsibilities of ADB Loans Project Office of Hunan Province are to organize the work of project Resettlement and the planning, to take charge of the policy compilation of resettlement activities of the project, and to organize and coordinate the relation of resettlement institutions at all levels. Provincial Project Management Office will be set up under Provincial ADB Loans Project Office to deal with everyday affairs.

4) Resettlement Management Office of Hunan Province Resettlement Management Office of Hunan Province is constituted by Loans Project Execution Office, and its main responsibilities are to strengthen the leadership in the course of project implementation in Hunan Province, and to coordinate the working relation among the cities in Hunan Province and guarantee the construction of main body of project and the smoothness of land acquisition resettlement.

5) Project Resettlement Leading Group of Xiangtan City Project Resettlement Leading Group of Xiangtan City is managed by leaders of Xiangtan City People’s Government in charge of the project directly, and its main responsibilities are to strengthen the leadership during the course of project implementation in the city, to coordinate the working relation of towns (townships or Sub-District), and to guarantee the smoothness of the construction of main body project, land acquisition resettlement. City PMO shall be set up under the leading group to deal with everyday affairs.

6) Xiangtan City ADB Loans Project Office The main responsibilities of Xiangtan City ADB Loans Project Office are to strengthen the leadership of the project, take charge of policy compilation of resettlement activities, and to organize and coordinate the relations of resettlement institutions at all levels. City Resettlement Implementation Management Office will be set up under it to deal with daily affairs.

7) Xiangtan City Project Resettlement Implementation Management Office The main responsibilities of it are to fulfill management, planning, implementation, coordination and supervision

and monitoring of the resettlement: ① Work out the land acquisition of the project, demolition and resettlement policy; ② Entrust the design unit to determine the range affected by the project, to investigate the physical index of the impact of the land acquisition and demolition, and to preserve the data; ③ Apply for the land using and planning, and license on land using and construction; ④ Be in charge of service training of main resettlement leader of Land Acquisition, Demolition, and Resettlement Office; ⑤ Organize and coordinate the compilation and execution of Resettlement Planning Report; ⑥ Be responsible for management and allocation of funds, and supervision the using of funds; ⑦ Guide, coordinate and supervise the resettlement implementation and progress ; ⑧ Preside over and check the internal monitoring activities, and be in charge of compilation of the report on land acquisition, demolition and resettlement; ⑨ Determine the external monitoring institution and assist with the external monitoring activities.

8) Town (township, Sub-District) Resettlement Implementation Management Office It is led by Town (township, Sub-District) leader in charge of this project and composed of the main leaders of Land Administration Station, Police Office, Civil Administration Station and villages. The main responsibilities are as follows: ①Take part in the project investigation and assist in the compilation of Resettlement Action Plan; ②Organize the masses to join in and publicize the resettlement policies; ③Implement, check, monitor and record all of the resettlement activities in the township or town;

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④Go through the demolition and rebuilding procedures for resettler’s houses; ⑤Be responsible for the payment and management of land compensation funds; ⑥ Supervise the land acquisition, demolition of houses and attachment, and the rebuilding and demolition of buildings; ⑦ Report the conditions of the land acquisition, demolition and resettlement to City Land Bureau and Resettlement Management Office; ⑧ Coordinate and deal with the contravention and problems in work.

9) Village, Residential Committees and Villager Group Village Committee or Residential Committee and Villager’s group Resettlement Group of Village Committee or Residential Committee and Villager’s group is composed of main leaders of Village Committee and Villager’s group, and its main responsibilities are as follows: ① Take part in the investigation of social economy and the project impact; ② Organize the masses to negotiate and to publicize the land acquisition and demolition policies; ③ Select the resettlement site, and allocate housing plot for the demolition household; ④ Carry out land reclamation, adjustment and allocation, and organize the resettlement activities such as production development; ⑤ Be responsible for the funds management and allocation; ⑥ Report the opinions and advice of resettlers to the higher authorities; ⑦ Report the progress of resettlement implementation; ⑧ Provide help for the households with difficulties in demolition.

10) Responsibilities of Design Unit During the planning design stage, survey the physical index of demolition, environmental capacity, developable and available resources exactly, to assist the government in the project area to work out the resettlement scheme, to compile the budgetary estimate of compensation and investigation for demolition and the report on demolition and resettlement planning, and to work out the related drawings.

In the implementation period, provide design document, technology regulations, drawings and notice for the City PMO in time, report the design technical explanation to project Offices at all levels by phase, assist each settlement Office with the settlement demolition and settlement production arrangement and improve settlement arrangement planning schedule according to the actual conditions.

11) Responsibilities of Independent Institution for External Monitoring and Evaluation Qualified monitoring evaluation institution is hired to be the resettlement monitoring unit by the City PMO, and its main duties are:

① As an independent institution for monitoring and evaluation, its main responsibilities are to observe each aspect of the resettlement plan and its implementation, to monitor and evaluate the resettlement work, the implementation result and the social adaptability of the resettlers, and provide resettlement monitoring and evaluation report to the ADB through the PRO. ② Provide technical consultation for Project Resettlement Office in the aspects of investigation and process of the data.

6.3 Supervision Institutions Xiangtan City Project Rettlement Office within LPMO is the supervision institution, and it presides and checks the internal monitoring, compile project land acquisition resettlement progress report, report resettlement implementation progress, problem and advice for the Provincial Project Office regularly to maintain the good function of resettlement institution at all levels in the course of project implementation, coordinate work of all aspects and master the resettlement implementation conditions.

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At the same time, City PMO hired qualified and independent external monitoring unit to take the charge of the project land-cover demolition and compensatory monitoring evaluation work of resettlement. Independent monitoring unit shall provide technology consultation for internal monitoring and management, provide overall resettlement implementation information for City PMO and report resettlement progress, problem and disposal advice for City PMO.

6.4 Resettlement Management System Employer responsibility system, project supervision system, project bidding system and contract management system is used in resettlement project management. Xiangtan Municipal PMO is in charge of the bidding work of resettlement implementation, special and basic facilities. And independent supervision units are invited to monitor and evaluate the resettlement.

What’s more, computers shall be used to manage the information and keep all archives of resettlement and materials in the course of implementation in PMO at all levels.

6.5 Personnel and Facilities of Resettlement Institution 6.5.1 Personnel Arrangement In order to maintain the resettlement work to be carried out smoothly, special personnel shall be arranged for resettlement management institution at all levels to form a smooth information transmission channel. Personnel of resettlement institution consist of administrators and professional technical staff who own certain profession level and management qualification and land acquisition demolition working experience. See table 6.5-1 for details of related institution personnel conditions.

Personnel of Resettlement Implementation and Management of Xiangtan City Urban Flood Control Project Table 6.5-1 Unit: Person Finance Technical Political Logistics Institution Name Total Administrator Staff Staff Worker Staff City Resettlement Implementation Management 8 2 2 2 1 1 Institution Township (District) Resettlement Implementation Management 9 3 3 3 Institution Total 17 5 2 5 1 4

6.5.2 Facilities The facilities equipped with the institution mainly refer to the resource arrangement of resettlement implementation institutions such as office buildings for resettlement institution at all levels, transportation tools, office facilities and communication facilities (see Table 6.5-2 for details). Total amount of facilities management as planned for resettlement institution is 407.5 thousand yuan, and the funds are open-fee of resettlement implementation institution of general budgetary estimate of resettlement investment.

Facilities Arrangement of Resettlement Implementation Institution of Xiangtan City Urban Flood Control Porject

Table 6.5-2 Project Type Unit Unit Price Amount Investment Remarks

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（ ） District (CNY 104) Yuan City (Townsip/Town) Total Resettlement Resettlement Office Office 300 1. Office Room 14400 5 2 3 7.2 yuan/room, hire for 4 years 2. Liebao Set 150000 1 1 15 Transportation CFA-6400A Tools 3. Offiec 16.71 equipments Lenovo 3.1 Computer Yangtian Set 8499 5 2 3 4.25 M6000 3.2 Printer HP8000 Set 8260 4 1 3 3.3 3.3 Duplicator Panosonic Set 13600 1 1 1.36 FP-7818 3.4 Digital SONY Set 4880 4 1 3 1.95 Camera DSC-V1 3.5 Air Green Set 4000 5 2 3 2 conditioner 505TlyType 3.6 Table and Set 900 17 8 9 1.53 Chair 3.7 Scanner HP4670C Set 2000 4 1 3 0.8 3.8 Fax Liguang Set 1200 4 1 3 0.48 8500 3.9 Telephone Simens Set 600 5 2 3 0.3 8000 type 3.10 Toshiba Set 8000 1 1 0.8 Notebook PC PA100 4. Total 38.97 Investment

6.6 Training Plan To guarantee the work of project implementation can be carried out smoothly, the resettlers should be trained and the training plan should be formulated. Resettlement training plan contains of two aspects: training plan for resettlement administrator and production skills to be mastered by the resettlers.

6.6.1Resettlement Administrator Training Plan Plan and establish city-level, township-level and village-level resettlement institution personnel training and human resource development system. Resettlement administrator training work can be carried out by inviting leader or expert to give the lecture, starting technology training class in each units, visiting and studying in resettlement project, training the administrators on the spot. Training content contains:

1) Resettlement principle and policy; 2) Resettlement planning management training; 3) Resettlement implementation planning design; 4) Resettlement implementation progress management; 5) Resettlement finance management; 6) Resettlement project quality control; 7) Management information system; 8) Resettlement monitoring evaluation; 9) Resettlement project management.

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6.6.2 Production Skills Training for Resettlers Resettlement production skill training plan mainly is aimed to train the resettlement household in the aspect of knowledge and practical technology. The training mode of integrating long-term training, short-term training and key technology training together shall be adopted, and also some young person with certain quality shall be sent to study in Hunan Agricultural University and Hunan Agricultural Science Academy in order to provide a number of technical backbones for the project area; Regarding the provincial and city training center as the carrier, we shall hold all kind of practical technology training in order to make a number of resettlement master one to two kinds of practical technology and lead other resettlement households to rich life by science.

1) Training for resettlement backbone: It is planned that we will recommend and sent some resettler’s children or resettlement backbone who is qualified and is active to receive long-term training and education in Hunan Agricultural University in order to make them the pioneers of resettlement development. 2) Training on planning technology: carry out the training on big-shed vegetable production technology, high quality cross hybrid rice, two-low rape technology promotion by inviting agricultural science experts to have class fixedly and demonstrate on the spot. 3) Training on aquaculture technology: carry out the training on poultry feeding skill and livestock aquaculture skill by inviting agricultural science experts to have class fixedly and demonstrate on the spot.

6.6.3 Investment on Resettlement Training and Planning A total of 7 semesters of resettlement training class will be carried out with 136 persons participating at cost of RMB 108,000. Among them, 4 semesters will be targeted to resettlers with 106 participants (of which: female, 50) at cost of RMB 69,000; and three semesters will be for resettlement staff with 30 participants at cost of RMB 39,000. The training cost is included in the total resettlement budget. See Table 6.6-1 for details.

6.7 Measures for Institution Consummating 1) Make the responsibility and obligation range of resettlement institution clear and definite, and strengthen the supervision and management;

2) Enrich the forces of resettlement institution at all levels, and especially strengthen the profession technology forces. All of the personnel must own certain profession level and management ability, and strengthen the skills in computer, testing equipment and transportation tools;

3) Select the working personnel strictly, and strengthen the service skill training and carry out the training for administrator and technical staff in order to improve the service ability and management level;

4) Arrange women leaders with proper quantity and make them play a role in resettlement;

5) Establish database and strengthen the information feedback to guarantee the smoothness of information both from the higher to the lower and from lower to the higher, and important problems shall be solved by resettlement leading group.

6) Strengthen the report system and internal monitoring, and solve the problem in time.

7) Establish external monitoring evaluation mechanism and pre-alarm system.

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Resettlement Implementation Training Plan Table of Xiangtan City Urban Flood Control Project Table 6.6-1 Training Funds Training Training Amount of Training Project Lecturer Training Object Training Content period arrangement Remarks Place Mode Person (person) Semasters (day) (104yuan) I. Training for 30 3 3.9 administrator （2） 1.Resettleme nt Principle and Policy; （3） 2. Resettlement Project Planning Xiangtan City （1） H Management; Project Lecture by unan PMO (2) City PMO （4） 3.Resettleme 3 1 5 0.8 Resettlement Expert Resettlement Administrator nt Finance Management; Office Expert （5） 4.Manageme nt Information System; 5. Resettlement Implementation Management, etc. 1. Administrator Xiangtan City of Sub-district 6 Project Provincial Class PMO The same with above 1 5 1.9 Resettlement PMO Expert 2. Administrator Office 13 of Each Village Domestic Domestic Main Service Resettlement Implementation Similar Investigation Personnel 8 1 7 1.2 and Monitoring Management Project and Study of PMO II. Resettlement Production Skill 106 4 6.9 Training 1.Production technology Refresher Resettlement management; Hunan Teachers of course and backbone and 2.Agricultural technology Agricultural Agricultural 6 1 Half a year 2.6 entrusting resettlement management; University University education children 3. Agricultural production multi-operation

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Administrator of City Representative Township Resettlement of each town, 1.Planting technology training (Sub-district) Class Office and 100 (female 50) 3 3 4.3 township and 2. Aquaculture training PMO agricultural village Technology expert III. Total 136 7 10.8

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7. Public Participation and Harmonization with Residents in Resettlement Area

7.1 Public Participation Strategies According to relative relocation resettlement policies and code of nation, province and city, in order to maintain lawful rights and interests of resettlers and removed units to be removed and reduce complaints and dispute, work out the policies and implementation detailed rules of removing and allocation of project, compile resettlement plan, do well the implementation and organization work aiming at the rebuilding character of the project. In order to accomplish appropriate resettlement, a great deal of efforts has been made on increase participation and consultation by the resettlers during stages of preparation and implementation of the RP.

7.2 Approaches and Measures of Public Participation 7.2.1 Participation Approaches Before launching investigation work, compile general work outline, listen and accept local government’s opinion for the investigation content, approaches and requirement, etc. Local government dispatches staff to take part in investigation group and work together.

In the period of investigation at large, invite principle and representatives of township, village and group to participate in investigation work, and propagate to them the project necessity, project effect, project influence, compensation principle and resettlement schedule, and deliberate over the possible direction of the resettlement together.

In the phase of resettlement planning, the work staff of resettlement deliberate with all levels of leaders of city, township (town, Sub-District), listen to and accept opinions, requirements, and existent problems, choose resettlement area. When investigating on the spot, local mass and concerned leaders shall participate in choosing resettlement location. It is proved that the consultative work has active significance to choosing resettlement location of long term potential and establishing scheme which is easy to be accepted by resettlers.

7.2.2 Participation and Consultation Measures Public participation and consultation mainly adopts two ways of small group discussion and spot check of resettlers’ opinion. Illustrate project building purpose, content and importance to the resettler representatives and discuss the matters concerned the resettlement planning together through these manners. Through investigation, a great deal of efforts are made on public participation and consultation opinions by design units. On the basis of no prejudice to the collectivity planning principle, house-building scheme for resettlement and production resettlement modes should be consistent with mass opinions so that programming is in reason and resettlers are satisfied.

In the stage of resettlement implementation, still adopt the ways of colloquia and spot check of resettlers’ opinions, collect resettlers’ information, investigate resettlers’ desire, and perfect resettlement plan ulteriorly.

To ensure that the resettlers and local government in the affected area understand the detailed information of the resettlement plan and the resettlement and compensation plan of the project, propaganda to the resettlers the laws and regulations on national resettlement through public participation (colloquia) or local media (such as TV) from the start to the implementation of resettlement plan, so resettlers know exactly practicality index quantities, the computation method of compensation standard and methods, resettlement measures, appropriation and usage of the resettlement compensation and assistance fund, the rights and compensation method of the resettlers, etc. At the same time, similar information should also be disclosed to the residents in the resettlement area to make them know more about land acquisition information, land compensation standard, fund usage and resettlement information. Disclose resettlement work to gain the support and confidence from both groups to ensure the success of resettlement work.

7.3 Public Participation in the Compilation of Resettlement Planning Report In the stages of preparation and compilation of Resettlement Plan, all levels of local government and resettlers

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should take part in the following item of work:

1) In May, 2006, the investigation on physical indices of relocation and demolition by land acquisition in the project was conducted by Xiangtan City Project Resettlement Office, resettlement design units, Villagers’ groups and resettler representatives. In the process of resettlement planning, project resettlement office and resettlement design units go deep into every village and Villager’s group, adopt the form of holding colloquia participated by cadres of village group and resettlers representatives or discuss with resettlers randomly, further solicit their opinions and suggestions on resettlement (including their choice of resettlement location, production rehabilitation measures, house tearing down and building and compensation policies for land acquisition. For details, see 7.3-1.

2) Xiangtan City resettlement office and design office successively organize and hold consultation meeting participated by all levels of local cadres and all classes of influencing people. Consultation the all classes of existing policies on resettlement of country, province and city. Accept and consult widely their opinions on how to decrease project impact, how to resettle the demolition resettlements for land acquisition and compensation standard for all level of affected people. For details, see7.3-2.

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Table7.3-1 Questionnaire of Public Attitudes toward the Project Participant Time Location Participant Number Discussion Content Final Results The officials of each Project introduction, Support project Each resettlement village, 148 (68 affected area and building, agree with 2006.5 resettlement design unit, resettlement female) tentative resettlement resettlement plan village representatives scheme tentatively. Planning committee, Project introduction, Support project City and town government, design 17 (8 affected area and building, agree with 2007.11 sub-district units, planning, country meeting room and resettlers female) tentative resettlement resettlement plan in representatives scheme principle. Municipal government, Solicit project Defining every item of Municipal design units, planning, 29 (12 opinions on compensation 2009.3 government compensation, standards, resettlement meeting room country, resettlers female) resettlement plan and policies and land representative land acquisition acquisition policies.

Table7.3-2 Policies Disclosure Purpose Content Who and with whom When Where 1.Project influence all kinds of quantities of index in kind Administrative and land acquisition of Survey group management organ of consists of City July, project area, township Project impact in project. project Office and government, village social-economy survey 2.Project influence 2004 socio-economy condition in Resettlement committee, the affected the area affected by the design units domestic and non project domestic 1.Accept the opinions and suggestions of every relative Tentative consultation for party of project scheme, Municipal the compensation policies Mar. and demolition scheme in demolition and resettlement government, City Within the project scope work. project Office and 2008 the preparation of 2.Resettlers representative affected people resettlement plan participate in demolition and resettlement work. 1.Hold consultation meeting, concentrate on introducing conditions and go on accepting opinions and City project, Further consultation of Jul compensation policies suggestions. demolition Office and rehabilitation plan in 2.Hold mobilization and demolition y, Demolition Location demolition work meeting, household 2009 revising resettlement plan explain resettlement plan, representative compensation standards and answer the relocatee’s question.

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3) In the process of resettlement plan, the project publicizes relative resettlement information to the residents in resettlement area, through holding the discussions with village officials and resettlers representatives or talk with resettlers randomly. Then they can know more about the land acquisition, land compensation standards, fund usage and resettlement information. Table 7.3-3 Information Disclosure Process Disclosure Document Disclosure Way Date Disclosure Location Situation introduction of the project (including 1. Hold the meeting land acquisition 2.Bulletin column Oct. 2006 Project area 1.Resettlement Information Sep. 2007 Introduction of the project of land acquisition and Booklet Project area removal 2.Hold the meeting Nov. 2008 Disclose the bulletin of resettlement plan Bulletin column Mar. 2009 Project area Bulletin column Aug. 2009 Disclose the report of resettlement plan published in the newspaper Project area Bulletin column Dec.2010 Disclose revised version of resettlement plan published in the newspaper Project area (1) City Project Office Jan. 2014 Submission to ADB (2) Website City PMO

4) In March, 2006, staff of the resettlement planning team conducted survey of willingness among affected households with the assistance and corporation of relevant department of project. The results are listed:

① Have knowledge with the project: 91.28%of the affected people claimed that they had knowledge of the project and 8.72% of them have no knowledge about it. ② Sources of information: 85.64%of the affected people get known from the investigation persons and 14.36% from the residents of the neighboring villages. ③ Support attitude: All affected people hold an attitude of supporting to the project. ④Views on Impact: 93.45% of the affected people think the flood control benefit is obvious, and by the way of the reasonable compensation, the negative impacts can be alleviated;6.55% think the flood control benefit is obvious, while the negative impacts are big. ⑤Resettlement Approach: as the land to be acquired is mainly located in Xiangtan urban area and belt in the middle of the urban area and township, 10.27% resettlers hope the government will arrange the housing plot unitedly and concentrated resettlement, and 89.73% resettlers hope for the cash compensation. ⑥ Economic rehabilitation: 12.38% of the affected people ask for cash compensation, and 87.62% ask for compensation through land adjustment.

7.4 Public Participation and Plan in Implementation of Resettlement Plan Resettlers should be encouraged to participate in the whole process of implementation of resettlement planning of the project. 7.4.1 Participation in the Houses Rebuilding and Resettlement 1) Houses Compensation Standards The houses compensation standards are very important to the resettlers’ benefits. Before the houses are removed, relative organs consulted and signed contracts on houses compensation standard with resettlers. Consultation results should be publicized before signing agreements so as to accept mass supervision.

2) Houses Rebuilding Location and Method In the stage of preparation and compilation of Resettlement Plan, relative department survey the resettlement houses rebuilding location and method. According to the investigation results of the relocatees’ opinions, most relocatees are willing to stay within their original villager’s group by way of self demolition and building of their houses. Local government offers help in every stage of resettlement and building houses.

3) Dealing with the Old Houses

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All the removed houses received houses compensation according to replacement value. The removed household can first remove then build or first build then remove according to their own willingness in the prescribed time. Old materials of the formal houses can be used by removed household.

7.4.2 Participation in Production Resettlement All the villagers of every village and group are participate in the adjustment and distribution of land and start-up of other agricultural development project, especially take care of resettlers who have special requirements of land.

7.4.3 Participation in the Usage and Management of Land Compensation Fee Land compensation fee should be owned by collectivity of villages and groups, any unit and individual should not withhold and appropriate. After the compensation funds have been given to collectivity of villages and groups, it should be planned as a whole in order to ensure special funds for special purposes. The funds cannot be used until the usage is talked over and agreed in every group of villagers meeting and be supervised by villager representative.

7.4.4 Participation in Project Construction The project construction more or less affect local. In order to ensure the affected people can benefit from the project, mass are encouraged to participate in the project construction and provide convenience in materials and labor services.

7.5 Women Participation From the start of the project, a great effort has been made on the function of women by the implementation institution of the project and local government. Concern women and families where women are the householder and bring women into play in the process of implementation of resettlement plan.

In the affected area, women’s rights, interests and status should be the same as that of men. Women play an important role in economic development activities and housework. Especially in the country, most women stay at home, more men go into the city to find jobs. So besides family responsibility women play an important role in tilling and non-farm work. So in the area affected by the project, women will pay more attention to the project than women, they not only take part in every stage of work of resettlement but also give fineness rein to the direction and method of resettlement.

In the period of surveying the project at large, all Women Directors of resettlement villages are invited to participate in surveying work group to propaganda and communicate with affected women; In the small colloquia of resettlers, more than 50% is female, besides they support the project actively, they showed that they pay closer attention to the correctness of surveyed index in kind, rationality of compensation standard and whether the compensation fee can reach in time etc.

In the resettlement planning stage, resettlement design unit actively invite female resettlers representatives to discuss together, accept their opinions, requirements and existing problems on production resettlement and resettlement of demolition and houses building. The consultation work has positive significance in releasing women from the worry of living source and traditional production pattern and achieving equal proceeds in the production.

Meantime, arrange for at least one-woman cadre in all levels of setup of the project; encourage women to participate in the implementation of the resettlement planning. A great deal of efforts are made on the women’s demolition activities, especially the livelihood rehabilitation by resettlement implementation setup and local government in the process of implementation of the project. Give priority to women and provide more opportunities in the project construction.

7.6 Harmonization with the Residents in Resettlement Area The resettlement modes of the relocatees mainly include self purchasing of their houses and concentrated

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building of houses. The relocatees in choice of the former are optional, so they will readily adapt to the new residential livelihood; whilst the relocatees in choice of the latter will, without large change in the living environment, have the common living styles, habits and customs, and readily merge into the livelihood of the resettlement communities. Of course, it doesn’t mean that there is no estrangement and conflict between the resettlers and former residents. In order to establish good relationship between them, the following work should be done:

1) Before removal, resettlers and residents in the resettlement area should take part in the resettlement planning. If you want to get cooperation, participation and feedback opinions of resettlement area and resettlers, introduce to them their rights and schemes they can choose. They can have their own choice from a number of resettlement schemes. They can consult with them directly or define through formal or informal leaders and representatives. In most conditions, do some system arrangement such as project official holds regular meetings with local groups so that resettlers and residents in the resettlement area can show their opinions in the whole period of planning and implementation of the project. Must make effort to see that vulnerable populations express their opinions adequately.

2) Try to decrease the impact on the residents in resettlement area. There may be conflict between resettlers and residents in the resettlement area if resettlers need more land, water sources, wood land and society services, or society and houses facilities provided for resettlers succeed the level of residents in resettlement area. So in order to avoid such conflict, the livelihood condition and society service of the residents in resettlement area should be improved, at least avoid deterioration. Try to provide for two groups the perfect education, water supply and medical service and create better social atmosphere for their permeation.

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8. Appeal Procedure

8.1 Possible Complaint and Problems Solving Methods Resettlement Plan makes overall plan for resettlement scheme from the angle of the affected area of the whole project. In the implementation process, resettlers’ complaint may appear because of the change of actual situation and deviation of operation. According to resettlement experiences got from the constructing and constructed projects, the resettlers’ complaint may be the several following kinds:

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

2) Compensation Standard A number of resettlers might have concerns on the compensation could not meet rehabilitation needs due to lack clear understanding about national resettlement policies and compensation. Prior to implementation of resettlement project, the design personnel should cooperate with all levels of government and resettlement office, do the technical explanation, explain national resettlement policies and computation process of compensation standard in order to make resettlers understand that compensation standard is compiled according to the national laws and regulations document, which can ensure resettlers move out, live comfortably, develop so as to release their misgiving.

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

8.2 Appeal Channel and Procedure Resettlers enjoy rights and obligations, which are endowed by constitution and law. The exiting laws and codes of our nation can guarantee resettlers lawful rights are not violated. Appeal until getting it, if the lawful rights and interests are violated.

1) Appeal Channel ─ Complaint Office (including resettlement) is set in city, city and province of the resettlements and can investigate and deal with general appeal question of resettlement; ─ Establish all levels of local resettlement management setup according to the law, every lever has the authority to supervise the lower level from province, city to city and can accept appeal case in the way of resettlement; ─ Self-governed resettlement monitoring setup works according to relative regulations of nation, is responsible for maintaining resettler’s lawful rights and interests. The appeal problems of the violation of the rights of resettlers can also be accepted and reflected; ─ The violation laws and discipline case relating to resettlement appeal can be accepted in the law departments such as administrative supervision, auditing, discipline inspection, judiciary and prosecutorial department. For the resettlement appeal system of the whole project, see figure 8.2-1.

2) Appeal Procedure There are two kinds of appeal procedures:

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(1) If any resettler find any problems in land acquisition and house demolition, he/she can reflect to village committee (residential committee), which could consult with local resettlement office directly, or appeal to superior resettlement office in oral form or written form. After superior resettlement Office accept the appeal, keep records and consult with village committee and local resettlement office within 10 days. If the contradiction and dispute can not be solved, in accordance with appeal channel, village committee can appeal to administrative setups step by step such as project office, resettlement management setup, resettlement monitoring setup, complaint office, administrative supervision, disciplinary inspection and procuratorial department etc.) According to Administrative Procedure Law of People’s Republic of China. If resettlers are still not satisfactory, appeal to people’s court directly. (2) From May. 2003, ADB adopts a new accountability mechanism that enables people whose rights are violated by ADB loaned project may give opinion, find solution and report possible action violates ADB policies and procedures (including safeguard policies). In case the project-affected people are not satisfied with the resettlement plan, they can make their appeal through ADB accountability mechanism. The accountability mechanism provides independent forums and channels, where person affected by ADB financed project can raise a question, seek solutions, as well report possible violations of ADB policies and procedures.

Resettlement Office is responsible for keeping records of all appeal problems and solving process and keeps in the archives.

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Law department of Project Office of Hunan city, city and province province

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

People’s letters and Resettlement Office of implementation and visits handling Office monitoring and management of project of city, city and evaluation setup resettlement of Xiangtan City province

Office of implementation and management of project resettlement of Sub-District, town and township

Village committee or villagers group

Affected household

Figure 8.2-1 Appeal System Figure of Project Resettlement

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9. Environment Protection and Management

9.1 The Necessity of Environment Protection The environment evaluation of main body of resettlement investment project shall include the impact of resettlement on the environment. The planning of resettlement shall be conducted with environment evaluation. It is necessary to demarcate the line of resettlement area and calculate the increment of population density in unit area. In agricultural project, if the number of the resettlers is larger than the original number of this resettlement area, the aggravating environment problems will come along, such as deforestation, excessive depasturing, the water and soil loss and the pollution of the hygienic conditions etc. Therefore, appropriate eased measures (including the training of resettlers) shall be included in the resettlement planning, besides other resettlement places can also be chosen. And the urban resettlers will cause the relevant problems related to the population density (such as communication capacity, drinking-water source, hygienic system and medical & healthy treatment etc.). Constructive environmental management methods can supply both good opportunities and benefits to the resettlers and the residents in the resettlement area. If the resettlement causes an unacceptable consequence, we must find another resettlement site or add the resettlement points.

9.2 Liquidation of Relocation All kinds of rubbish, which are produced during the demolition of the various buildings and their attachments within the project range shall all be spoiled in the place designated by the Xiangtan City Environmental Hygiene Administration.

The houses and their attachments within the project range shall be demolished; their walls shall be torn down and leveled. And the interior pollution source within the project range shall be removed and disinfected. The existing wastewater of the industrial enterprises within the project range shall be drained off according to the stipulations. Poisonous waste slag shall be delivered to the appointed place and buried. And the warehouse used for storing the chemical materials shall be treated by poison elimination and neutralisation, so that the soil can meet the hygiene standard.

9.3 The Environment Management of the Resettlement Area The environment protection shall be fully considered during the planning and construction of resettlement area, we shall try our best to make the surroundings beautiful and comfortable.

(1) Level the land of the cutting faces when excavating the new soil, and set up drainage ditches on the cutting faces when necessary to reduce the water scouring to the cutting faces; the waste area shall be forested as soon as possible so as to avoid the water and soil loss; houses and public facilities shall be constructed with the least damage to the forestry vegetation; and trees shall be planted on both sides along the roads.

(2) Do a good job of the new houses cleaning: Renovate the environment and spray pesticide before the resettlers move in, and clean the weed and wastewater container or other things both in front and back of the house after settling in.

(3) Choose a healthy and clean water source: set up a solid reservoir if it is required to take the spring as the water source, such pollution source as toilet, filter pit, manure pit, livestock barn, waste pit, rubbish pit and waste slag pit etc. are not allowed to be set up in the area 20~30m around the water source.

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10. Monitoring and Evaluation 10.1 Internal Monitoring 10.1.1 Internal Monitoring Agency Organization In this project, the Xiangtan City PMO is authorized as internal monitoring agency, this agency shall be appointed a special leader to be responsible for the relevant problems of resettlement. The leader shall be experienced in resettlement and authorized to coordinate with the relevant departments involved with the resettlement. And the agency shall be appointed the sufficient personnel, and the personnel shall be qualified for experiences of resettlement work and social problems, so as to carry out the right responsibilities.

10.1.2 The Objective of Internal Monitoring The objective of internal monitoring is to maintain the good function of resettlement agencies at all levels during the project implementation process, and coordinate and cooperate with each unit in order to grasp the situation of resettlement implementation timely.

10.1.3 The Content of Internal Monitoring 1) The relocation, allocation of housing locations and housing reconstructions; 2) The implementation schedule and quality of development project of resettlers’ production; 3) The investigation, coordination and proposals for the main problems existing in resettlement and implementation agencies during the implementation process; 4) The family income rehabilitation after resettlers’ relocation; 5) The rehabilitation of vulnerable group; 6) The payment and usage of the resettlement compensation and the situation of fund in place; 7) Resettlers’ participations and consultation during the implementation period; 8) The resettlers’ training and effects; 9) Agencies, training, working timetable and efficiency of the local RO.

10.1.4 The Responsibilities of Internal Monitoring 1) Cooperate with resettlement implementation agencies, departments in charge and external monitoring units. 2) Work out the corresponding tables according to the monitoring contents, and ask the implementation units to fill in and submit the tables to the department in charge and City PMO; 3) The monitoring personnel shall check and investigate on the spot once a month, and they shall participate in the completion acceptance of the resettlement project once a month. 4) Supervise the implementation of the annual work plan, fund utilization; the annual fund shall be audited by the provincial department in charge of resettlement; 5) Submit the working schedule report to PPMO in July of each year; 6) Report the implementation situation to Provincial PMO and ADB every half a year.

10.2 External Monitoring 10.2.1 Independent Monitoring & Evaluation Agency For this project, the qualified monitoring unit shall be invited to undertake resettlement monitoring and evaluation. The independent monitoring unit shall provide the comprehensive information on implementation of resettlement to the PMO, including implementation progress, the existing problems and suggestions to the PMO.

Through negotiation, ADB and HPMO finally determined that the external monitoring and evaluation for the 19 subprojects among the 35 subprojects will be undertaken by Changsha Xinghuan Water & Electricity Engineering Technology Development Co., Ltd, which include 8 core subprojects (i.e. Loudi City, , Wugang City, , , Yongzhou City, City and Leiyang City) and 11 non-core subprojects (i.e. , Xiangtan City, , , City, Hengyang City, , County, , and Luxi County) among the 27 non-core subprojects. And the external monitoring and evaluation for the other 16 non-core subprojects will be carried out by Hunan Hydropower Consultation Co., Ltd.

113 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

LPMO entrusted Changsha Xinghuan Water & Electricity Engineering Technology Development Co., Ltd as the monitoring and evaluation unit on this Project. The Company, in consideration actual conditions of this project, established Monitoring and Evaluation Office of Xiangtan Urban Flood Control Project. Through providing technical assistance to LPMO office and making investigation on living conditions of the affected people, the Company implemented all basic monitoring work. The Monitoring and Evaluation Office is made up experienced experts and technical personnel in resettlement planning, resettlement management, resettlement monitoring and supervision.

10.2.2 The Objective of Independent Monitoring & Evaluation The Monitoring & Evaluation of resettlement is an efficient management method in resettlement project management, and the objective of independent monitoring & evaluation is to provide the evaluation on the resettlement works. At the same time, the independent monitoring agency will consult with APs to acquire the knowledge, preferences and hopes of their livelihood, and report these findings to the Project RO. To check all the implementation works with an eye of long term. The independent monitoring & evaluation agency shall trace the resettlement activities, and give evaluation and proposes to the whole process of resettlement and the recovery of the resettlers’ living standards, and provide alarm system to engineering management department, and supply the report channels for resettlers’ suggestions, so as to ensure the planning and implementation of resettlement in conformity with the laws, regulations and rules issued by PRC, and to ensure the whole project to achieve the objective as expected.

10.2.3 The Contents of Independent Monitoring & Evaluation The independent monitoring units shall conduct the monitoring and evaluation to the implementation effects of rural resettlers’ relocation, the demolition and construction of institutions and enterprises, special facilities and infrastructural facilities, and utilization effects of resettlement fund.

1) Monitoring & Evaluation of resettlement implementation schedule is as follows: ① The schedule of land acquisition and the finalized situation of land for new resettlement area; ② The schedule of the housing demolition and reconstruction; ③ The schedule of resettlers’ relocation; ④ The schedule of employment allocation for the labors; ⑤ The construction schedule of public infrastructural facilities and special works.

2) Monitoring & Evaluation of the payment and utilization of resettlement fund is as follows: ① The situation of the fund being in place; ② The fund input and its utilization; ③ The evaluation of social and economic effects about the fund input.

3) Monitoring & Evaluation of resettlement production resettlement is as follows: ① The planning objective of resettlement production resettlement; ② The basic production situation before and after removal (including the employment situation); ③ The comparisons of main technical and economic evaluation indices before and after removal. If the evaluation fulfills the planning objective degree, the experience and lessons shall be summarized.

4) Monitoring & Evaluation of resettlers’ livelihood relocation is as follows: ① The planning objective of resettlement livelihood relocation; ② The housing condition and residential environment before and after removal; ③ The economic income and expenditure as well as composition before and after removal; ④ The comparisons of main livelihood evaluation indices before and after removal, evaluate the resettlers’ livelihood quality, and summarize the experience and lessons.

10.2.4 The Methods of Independent Monitoring& Evaluation The monitoring and evaluation activities are conducted on the basis of the investigation data provided by

114 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

agencies in charge of investigation design and relocation implementation. The evaluation is conducted on the basis of all-around understanding and adopted the combined methods of spot-checking and quick evaluation. Choose a typical model (resettlement household/ village), set up the corresponding evaluation index system according to the different affected objects, and invite the experienced resettlement expert to determine the weighting of each index by the way of “back-to-back”, and take the latest livelihood quality research at home and abroad as reference, manage the indices by dimension treatment, analyze and calculate the investigation achievements, and contrastively evaluate the calculation achievements.

1) Evaluation of Livelihood Standard The independent monitoring agency shall propose and conduct the investigation on basic living standard before implementation of resettlement, and set up a control group according to the random samples of APs. The investigation on living standard shall be repeated annually (it shall be conducted twice at least after implementation completion) so as to measure the change of APs’ living standards. This activity is one of the methods of determining the changes of APs’ living standards. The investigation table of living standard consists of every index used to measure production level and living standard, reflects the changes of production and livelihood by the developing changes of the same index before and after removal. Whether the design of the index will reflect the change of production and living standard of the resettlers truly will be showed in the base investigation. And the design of the index will be improved according to the actual conditions, so as to ensure the acquired information to fully and truly reflect the quantity and quality of resettlers’ production and living standard.

2) Public Consultation The independent monitoring & evaluation unit participate in the public consultations held by village and township (town) periodically, and evaluate the effects of Aps’ participation and the cooperative degree of Aps during the implementation course of resettlement planning by monitoring these consultation meetings. These activities are conducted over and over again during the period of resettlement implementation and after implementation.

3) Complaints The independent monitoring agency shall visit the affected places at the fixed time, and adopt the way of holding talks with local RO and APs to ask about and understand the complaints. Moreover, the independent monitoring agency shall monitor the efficiency of disposal of the complaints continuously. As for the possible changes, the independent monitoring agency shall propose the suggestions if necessary to make the process of resettlement more effective.

4) Other Responsibilities The independent monitoring agency shall propose the suggestions to the project RO during the period of preparation for RP plan and implementation; meanwhile, it is also responsible for the monitoring of the following indicative items: (1) The payment and amount of the compensation; (2) The preparation and sufficiency of the relocation sites; (3) The housing reconstruction; (4) The Aps’ removal; (5) Training; (6) The support to the vulnerable group; (7) The recovery and reconstruction of infrastructural facilities and special facilities; (8) The deployment and recovery of production; (9) The compensation of property loss; (10) The compensation of working time loss; (11) The transition allowance; (12) The compensation of repurchase fee of property loss; (13) The timetable of the above-mentioned activities (it can be used at any time); (14) The setup of resettlement network; (15) The utilization of collective land compensation fee and the resettlers’ incomes; (16) The situation of labor employment and incremental incomes.

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10.2.5 The Procedure of Independent Monitoring & Evaluation

Establish a project, and clarify the objectives, content and requirements of monitoring and evaluation;

Work out detailed general outline of monitoring and evaluation;

The works in Study the technical line and working methods of monitoring and evaluation; early days

Work out the investigation outline and tables;

Design typical resettlement trail investigation plan for monitoring system.

Give an all-around investigation for the socioeconomic materials of resettlement households and their villagers

Give all-around investigation for the schedule of the resettlers’ relocation and the situation of the fund in place; Monitoring System

Collect the information on typical resettlement households at the fixed time;

Check the random samples.

Conduct the inside liquidation, analysis, calculation, evaluation, and conclude a conclusion; Evaluation System Compile monitoring and evaluation report and submit the report to the City PMO and ADB.

10.2.6 The Period, Frequency and Standard of Monitoring & Evaluation 1) The period of monitoring: The working time of independent monitoring unit includes the engineering construction period and the two years after the completion of the project.

2) The frequency of monitoring: The frequency shall be reported at least twice a year at peak period and once in other years according to the schedule of resettlement implementation and arrangement of implementation intensity. And it shall supply consultation for City PMO.

3) The standard of monitoring：The investigation and sampling standard of IME: 5% APs in land acquisition and relocation; 20% affected village in land acquisition and relocation; 20% of the enterprises and institutions.

4) The time of monitoring report: Submit the monitoring report to the higher level twice at peak period (in July and December every year), and in other years submit it once in July.

10.3 The Evaluation of Resettlement After the completion of the project, on the basis of monitoring and evaluation, conduct an evaluation for the resettlement by means of after-project evaluation theories and methods. The content mainly includes the

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evaluation of successful experience and the useful lessons in the aspects of housing demolitions, enterprises and institutions, and land acquisition etc. And the evaluation will provide the referenced experience for the future resettlement. After resettlement, the evaluation unit shall undertake preparation of the evaluation outline, setup of the evaluation index system, the analysis and investigation on social economy, compilation of The Evaluation Report after the Resettlement Implementation of Xiangtan City Urban Flood Control Project, and then submit the report to Provincial PMO and ADB.

117 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute 11. Resettlement Budget

11.1 Compilation Reference and Principle 11.1.1 Main References 1) Land Administration Law of the People’s Republic of China (1999); 2) Methods of Hunan Province for Implementing the Land Administration Law of the People’s Republic of China (2000); 3) Houses Demolition Administration Regulations of the PRC, starting implementation since November 1, 2001; 4) Methods of Hunan Province for Implementing the Urban Houses Demolition Administration Regulations, starting implementation since September 1, 2002 5) Provisional Regulations on Cultivated Land Occupancy Tax of the PRC; 6) Methods of Hunan Province for Implementing the Cultivated Land Occupancy Tax (Revision); 7) A Notice by Hunan Provincial Commodity Price Bureau and Financial Department about Reissuing Administration Institutional Charging Items and Standards of Hunan Province National Land Resource System (XJF[2003] No.42); 8) Hunan Provincial Implementation Methods for Expropriation, Utilization and Administration of Forest Vegetation Recovery Fee (XCZ [2003] No.10 Document) 9) A Notice on Hunan Provincial Land Acquisition Annual Output Value Standard Issued by Hunan Provincial People’s Government General Office (XZF [2005] No.47) 10) Regulations about Land Acquisition and Resettlement for Hydraulic and Hydropower Project (SD290--2003); 11) Relative procedures and specifications of each professional department; 12) Investigation on tangible materials index affected by the project and achievements of resettlement planning. 13) Final implementation results of the project.

11.1.2 Compilation Principle 1) For the following items such as production resettlement, demolition relocation, demolition and reconstruction for the special facilities which are planned and designed with reference to the relevant national policies, regulations and standards, calculate the investment according to the design program and the corresponding works quantities (or physical materials amount).

2) Land compensation fees are determined based on actual implemented standards.

3) Housing compensation standard shall be determined according to typical unit price analysis on the houses in the project-affected area; compensation standards for auxiliary cacilities, scattered trees, and demolition subsidies shall be determined comprehensively according to the compensation standards for the typical design or the similar project.

4) Compensation fee for the special facilities shall be determined on the basis of “original scale, original standard and original function” according to the actual rehabilitation situation.

11.2 Resettlement Compensation Fee 11.2.1 Land Compensation 1) Project-involved Permanent Land Occupation The land compensation, resettlement subsidies and production compensation fee are calculated as RMB 8.2158 million yuan according to various kinds of the acquired land quantities and compensation standards.

2) Project-involved Temporary Land Occupation The project temporarily uses 390.9mu land, including 42.7mu paddy field, 41.4mu dry farmland, 134.4 timber forest land, 146.8 shrubbery forest land and 25.9mu waste land. According to the compensation standards for various temporary land Acquisition, the temporary compensation fee of this project is calculated as RMB 1.0796 million yuan (including the land reclaiming fee).

118 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute 11.2.2 Compensation for Houses and Auxiliary Facilities The compensation for houses and auxiliary facilities in this project mainly includes the compensation fees for residential houses, non-residential houses and the auxiliary facilities. The compensation fees for the houses and auxiliary buildings are totally calculated as RMB 14.9051 million yuan according to the demolition physical material indices and standards for compensation subsidies.

11.2.3 Compensation for Infrastructures The compensation for infrastructural facilities in this project mainly includes fees for the following infrastructures such as the site leveling, water drinking, illumination, and roads, etc.. The demolition and resettlement is planned to be 472 persons from 131 households. The investment is totally calculated as RMB 0.4323 million yuan according to the compensation standard of RMB 3300 yuan per capita.

11.2.4 Relocation Transportation Fee The transportation fee of this project mainly includes transportation fee, livelihood subsidies, temporary housing subsidies and secondary transportation fee, etc. The investment is totally calculated to be RMB 0.4095 million yuan, according to the required relocation and removal of 472 persons from 131 households.

11.2.5 Compensation for Enterprises and Institutions The housing relocation compensation for enterprises and institutions is counted into the compensation parts of houses and auxiliary buildings. The compensation for the enterprises only includes relocation subsidy and it is calculated as RMB 0.4004 million yuan.

11.2.6 Subsidies for Vulnerable Group The subsidies for the vulnerable group in this project is calculated as 17800 yuan/household for the construction of houses; and CNY 1000 yuan/person for subsistence allowance, the investment is RMB 0.2238 million yuan, and mainly used for offering various kinds of help or livelihood support fees for the vulnerable group affected by the project.

11.2.7 Resettlement Compensation Investment The resettlement compensation investment of this project is the sum of Item 11.2.1~Item 11.2.6, totally calculated as RMB25.6664 million yuan. For details, see Table 11.2-1.

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Budget for Resettlement Compensation Investment of Xiangtan City Urban Flood Control Project Table 11.2-1 Unit Price Investment Item Sub-item Sub-sub-item Unit Quantity Remarks （yuan） （104 yuan） I. Land Compensation 929.53

（1）Permanent land acquisition 376.2 821.58

1. Collective land mu 174.87 669.91 1.1 Farmland mu 55.87 223.33 Paddy mu 27.3 61210 167.1 field Dry mu 28.57 19680 56.23 land 1.2 Pond mu 60 48012 288.07 1.3 Rural residential mu 16.2 62340 100.99 land 1.4 Beach mu 42.8 13440 57.52 land 2. State-Owned Land mu 201.33 151.67 2.1 Land used mu 27.2 55760 151.67 by industry 2.2 Counted into the Residential mu 12 compensation for urban land use houses. 2.3 Other land Appropriate without mu 162.13 use compensation （2）Temporary Land Use mu 390.8 107.95 Including the land 1.1 Dry land mu 41.1 6319 25.97 reclaiming fee

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Budget for Resettlement Compensation Investment of Xiangtan City Urban Flood Control Project Table 11.2-1 Unit Price Investment Item Sub-item Sub-sub-item Unit Quantity Remarks （yuan） （104 yuan） 1.2 Paddy Including the land mu 42.7 7519 32.11 field reclaiming fee 1.3 Timber mu 134.4 2040 27.42 forest 1.4 Shrub mu 146.7 1530 22.45 forest land 1.5 Waste mu 25.9 land II. Compensation for houses and auxiliary facilities 1490.51

（1）Residential houses m2 12932.41 483.98 1. Urban residential m2 4233.41 265.73 houses 1.1 Brick m2 2874 680 195.43 concrete 1.2 Brick m2 753.41 650 48.97 wood 1.4 Simple m2 606 352 21.33 structure 2. Rural residential m2 8699 218.25 houses 2.1 Brick m2 4020 305 122.61 concrete 2.2 Brick m2 3770 238 89.73 wood 2.4 Simple m2 909 65 5.91 structure （2）Non-residence m2 16015 1003.37

1.1 Steel m2 12989 649 842.99

121 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Budget for Resettlement Compensation Investment of Xiangtan City Urban Flood Control Project Table 11.2-1 Unit Price Investment Item Sub-item Sub-sub-item Unit Quantity Remarks （yuan） （104 yuan） concrete

1.2 Brick m2 3026 530 160.38 concrete （3）Auxiliary facilities 3.16 3.1 Cement m2 160 25 0.4 sunny ground 3.2 Bounding m2 668 40 2.67 wall 3.3 Water Piece 1 500 0.05 tower 3.4 Chimeny Piece 2 200 0.04

III. Compensation for Infrastrucutre 43.23 Site levelling, drinking Household 131 3300 43.23 and lighting IV. Removal and transportation fees 117 3500 40.95 1. Transportation fee Person 40.04 for materials 2. Life subsidy Person 16015 25 40.04 3. Subsidy for Person 4233.41 265.73 temporary houses 4. Second Person 2874 680 195.43 transportation fee V. Compensation for enterprises and institutions 753.41 650 48.97

1. Removal subsidy m2 606 352 21.33

122 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Budget for Resettlement Compensation Investment of Xiangtan City Urban Flood Control Project Table 11.2-1 Unit Price Investment Item Sub-item Sub-sub-item Unit Quantity Remarks （yuan） （104 yuan）

VI. Compensation for vulnerable groups 22.38

Household 11 17800 19.58

Person 28 1000 2.8

Total 2566.64

123 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute 11.3 Compensation for Special Facilities As the relevant professional department in charge of the project-affected special facilities will conduct rebuilding planning and undertake the construction, the rebuilding compensation investment in this budget is temporarily calculated according to the quantities actually affected by the project.

1) Compensation for traffic facilities: mainly includes compensation fees for the reconstruction of hasty road with the investment equivalent to RMB 0.36 million yuan.

2) Compensation for power facilities: mainly includes the compensation for the demolition and reconstruction of 10KV hi-voltage lines, 380V low-voltage lines and the moving and installation fees of transformers, with the investment equivalent to RMB 0.191 million yuan.

3) Compensation for telephone lines: the model of cables for the telephone lines is HYA3-0.5, and the compensation is calculated at RMB 50,000 yuan/km, with the investment equivalent to RMB 0.119 million yuan.

4) Compensation for CATV: the compensation is calculated at 35,000yuan /km, with the investment equivalent to RMB 0.0935 million yuan.

5) Compensation for water resources facilities: it includes the compensation for hill ponds and the rebuilding of pumping station; and the compensation for the recovery of the irrigation function of the channel.

The compensation for the above-mentioned special facilities is RMB 0.8885 million yuan as shown in Table 11.3-1.

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Budget for the Compensation Investment for Affected Special Facilities in Xiangtan City Urban Flood Control Project Table 11.3-1 Unit Price Investment Item Unit Quantity Remarks （yuan） (in Y’0000) 1. Traffic facilities 36 1.1. Hasty road km 100000 3.5 35 1.2. Culvert gate Piece 10000 1 1 2. Power transmission 19.1 facilities 2.1. 10KV high-voltage line km 50000 0.5 2.5 2.2. 380V low-voltage line km 27500 5.6 15.4 Only calculate the 2.3. Transformer Piece 3000 4 1.2 compensation fee of installation. 3. Post facilities km 21.25 3.1. Telephone line km 50000 2.38 11.9 3.2. Cable TV line km 35000 2.67 9.35 4. Water conservancy 12.5 facilities 4.1. Electricity irrigation Piece 25000 5 12.5 station Total 88.85

11.4 Other Costs 1) Cost for survey, design and scientific research: The cost of required survey, layout, design and scientific research for land acquisition and resettlement design, is calculated to be RMB 0.7966 million yuan as 3% of the sum of the resettlement compensation fee and compensation investment on special facilities.

2) Implementation Management Cost: Including the routine management cost for resettlement implementation agency, such as salary, official business and evection, etc., it is calculated to be RMB 0.7966 million yuan as 3% of the sum of cost for resettlement compensation and compensation investment for special facilities.

3) Implementation Agency Initiation Cost: Including cost for official rooms, vehicles and equipment procurement and other required costs for the start-up and operation of the resettlement implementation agency, which is calculated to be RMB 0.3897 million yuan.

4) Technical Training Cost: Required cost for enhancing the production skills and cultural accomplishment of the rural resettlers and the management level of resettlement cadres. The cost is calculated to be RMB 0.1283 million yuan as 0.5% of resettlement compensation investment.

5) Supervision and M & E Cost: Cost for resettlement comprehensive supervision, monitoring and evaluation. The cost is calculated to be RMB 0.3983 million yuan as 1.5% of the sum of the cost for rural resettlement compensation and compensation investment for special facilities.

Through calculation, the other costs for the above-mentioned items total up to RMB 2.5095 million yuan.

11.5 Basic Contingency Fee The basic contingency fee is calculated to be RMB 2.9064 million yuan as 10% of the investment sum of resettlement compensation, compensation for special facilities and other costs.

125 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

11.6 Relevant Tax 1) Cultivated land occupancy tax: According to the statistical materials of Xiangtan City in 2005, the cultivated land area per capita of agricultural population in the project area is 0.7 mu. According to Methods of Hunan Province for Implementing the Cultivated Land Occupancy Tax, for areas where the cultivated land area per capita is above 0.5mu and below 1mu, the tax standard for paddy field and dry farmland is 4~8 yuan/m2, 4 yuan/m2 is adopted here. The cultivated land occupancy tax is totally calculated to be RMB 0.2235 million yuan in this project.

2) Cultivation Fee for Cultivated Land: According to the XJF[2003] No.42 Document issued by Hunan Provincial Commodity Bureau and Hunan Provincial Financial Department, Xiangtan City belongs to Grade I District, and the cultivation fee standard for cultivated land is: 12000 yuan/mu for paddy field and 8000 yuan/mu for dry farmland. According to the relevant regulations in documents issued by the Ministry of National Land Resources, State Economic and Trade Committee and the Ministry of Water Resources A Notice about Relative Problems of Land Acquisition for Hydraulic and Hydroelectric Project Engineering (GTZF[2001] No.355), for the cultivated land acquisition of project which is mainly for flood control, water supply (including irrigation) profits, the cultivation fee can be charged as 70% of the floor level of cultivation fee of cultivated land regulated by the People’s Government of each province. Hereby, the cultivation fee standard for paddy field and commercial vegetable plot is determined as 8400 yuan/mu for paddy field, and 5600 yuan/mu for dry land. Through calculation, the cultivation fee for cultivated land totals up to RMB 0.2235 million yuan.

3) Recovery Fee for Forest Vegetation: According to Temporal Methods for Expropriation, Utilization and Administration of Forest Vegetation Recovery Fee, the recovery fees are RMB 6 and 3 yuan/m2 respectively. So the forest vegetation recovery fee of this project is totally calculated to be RMB 0.831 million yuan.

The above-mentioned relevant tax is calculated to be RMB 1.6434 million yuan in total. See Table 11.6-1 for details.

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Calculation for Relevant Tax of Land Acquisition in Xiangtan City Urban Flood Control Project Table 11.6-1 Investment Item Unit Unit Price（yuan） Quantity （104 yuan） Total 0.00 164.36

I. Cultivated Land Occupancy Tax 22.35

1. Paddy field m2 4 28468.09 11.39

2. Dry land m2 4 27401.37 10.96

II. Cultivation Fee for Cultivated Land 58.89

1. Paddy field mu 8400 42.7 35.87

2. Vegetable plot mu 5600 41.1 23.02

III. Forest Vegetation Recovery Fee 83.10

1. Timber forest m2 6 89604.48 53.76

2. Shrub land m2 3 97804.89 29.34

11.7 Total Budget The total budget of compensation investment on land acquisition, demolition and resettlement in this project is RMB 33.6142 million yuan (the total investment excluding the relevant tax is RMB 31.9708 million yuan) and will be entirely listed into the total budget of the project and undertaken by the Project Construction Unit. For details of the total resettlement budget, see Table 11.7-1.

Total Budgetary Estimation for the Compensation Investment due to the Project Land Acquisition and House Removal in Xiangtan City Urban Flood Control Project Table 11.7-1 Investment (104 Item Sub-item Remarks yuan) I. Resettlement Compensation Fee 2566.64 1. Land compensation 929.53 2. Compensation for houses and auxiliary 1490.51 facilities 3. Compensation 43.23 for infrastructures 4. Transportation fee 40.95 5. Compensation for 40.04 enterpirses and institutions 6. Subsidy for vulnerable 22.38 groups II. Compensation for Special Facilities 88.85 1. Compensation for 36.00 traffic facilities 2. Compensation for 19.10 power transmission

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facilities 3. Compensation for 11.90 telephone lines 4. Compensation fee 9.35 for cable TV 5. Compensation for 12.5 water resources facilities III. Other expenses 250.95 1. Cost for Survey, Design 3% of the sum of Item I and 79.66 and Scientific Research II 2. Implementation 3% of the sum of Item I and 79.66 Management Cost II 3. Implementation Agency 38.97 Initiation Cost 4. Technical Training Cost 12.83 0.5% of Item I 1.5% of the sum of Item I 5. M&E Cost 39.83 and II 10% of the sum of Item I to IV. Basic Contingency Cost 290.64 Item III V. Total Investment (excluding tax) 3197.08 VI. Relevant Tax 164.34 1. Cultivated Land 22.35 Occupancy Tax 2. Cultivation Fee for 58.89 Cultivated Land 3. Forest Vegetation 83.1 Recovery Fee VII. Total Investment (including tax) 3361.42

11.8 Fund Flow The compensation fund shall be paid and used according to the compensation policies and standards determined in the resettlement activity plan. The funds shall be appropriated under the supervision and management of the interior monitoring agency and checked by the exterior monitoring agency.

Xiangtan City PMO will sign Contract Agreement of Resettlement Task Investment in Xiangtan City Urban Flood Control Project with City Project RO, and pay city RO in batches according to resettlement implementation progress. City Project RO then appropriates in classifications according to construction projects:

1) Land Acquisition: City Project RO sign Agreement of Land Acquisition Compensation and Attachments on Field with townships (management section) and villager committees affected by the project. The payment of compensation funds are paid to the Township (management section) Resettlement Office by City Project Resettlement Office via the bank according to the compensation items, quantity, time and expenses regulated in Agreement of Land Acquisition Compensation. Then the Township (management section) Resettlement Office pays the villager committee or villager’s group. The relative villager committee uses the land compensation fee for developing the production. The resettlement subsidies shall be paid to the rural collectivity. Then the rural collectivity will pay the resettlement subsidies to institutions or individuals according to resettlement scheme. Compensation fee for the attachments on field are paid to the owner through the villager committee.

2) Residential Houses: City Project RO will sign Agreement of Demolition Compensation for Project Resettlement Families with the involved and affected demolition resettlement households according to the following contents as basic conditions of the demolished houses, compensation amount, subsidies, payment mode and deadline, and demolition time limit, etc. The compensation fund is appropriated directly to the affected households by City

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Project RO.

3) Non-residential Houses: City Project RO will sign agreements with the relocatee on the contents of compensation standard, resettlement mode and demolition time limit, etc. The compensation fund is appropriated directly to the relocatee by City Project RO.

4) Compensation Fee for Public Infrastructural Facilities: City Project RO sign the Agreement of Compensation for Public Infrastructure with the project-affected township (management section) and the villager committee, or the Contract of Resettlement Project Construction with the construction unit directly. The compensation fund shall be paid to the relative townships, the villager’s groups and the undertaking units in batches according to the stipulations of the contractual agreement.

5) Special Facilities: City Project RO will sign Agreement of Compensation for Rehabilitation and Rebuilding of Special Facilities with each special department. For details of resettlement compensation fund flow of this project, see Fig. 11.8-1.

129 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Land Compensation Fee City PMO City Project RO Township (management section) Villager Committee or Villager’s Group RO

Resettlement Subsidies City PMO City Project RO Township (management section) Villager Committee or Villager’s Group RO

Compensation Fee for Young Crops City PMO City Project RO Township (management section) Villager Resettlement RO Committee Household

Compensation Fee for Residential City PMO City Project RO Township (management section) Relocatee Houses and Auxiliary Facilities RO Household

Relocation Subsidies City PMO City Project RO Township (management section) Relocatee Household or the Relevant Unit RO

Township (management section) Compensation Fee for Tomb City PMO City Project RO Owner RO

Compensation Fee for Infrastructural City PMO City Project RO Construction Unit Facilities

Non-residential Production and City PMO City Project RO Relocatee Business Shutdown Loss Fee

Non-residential Relocation Subsidies City PMO City Project RO Relocatee

Compensation Fee for Resettlement for Fee Compensation Compensation Fee for Special City PMO City Project RO Department in Charge of the Construction Facilities Special Facilities Unit

Subsidies for Vulnerable Group City PMO City Project RO Township (management section) Vulnerable RO Group

Planning and Design Cost City PMO Resettlement Design Unit

M&E Cost City PMO M & E Unit

Technical Training Cost City PMO Technical Training Unit

Implementation Management Cost City PMO Resettlement Implementation Organ at Various Levels

Fig.11.8-1 Fund Flow Chart of Resettlement Compensation in Xiangtan City Urban Flood Control Project

130 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

11.9 Fund Appropriation 11.9.1 Appropriation Principle 1) All the expenses related to land acquisition demolition are listed into the project engineering total budget, and compensation fees for land acquisition demolition and other expenses are paid by PMO via the City (District) RO to the relevant units and individuals; 2) The land acquisition fees will be paid by City (District) RO via the bank to the administrative villages, which will use them in principle for production rehabilitation of the villagers’ groups that are directly affected by the project or absorb the resettlers; 3) The compensation fees for the resettlers’ houses are paid by the City (District) RO to the resettlement households before their building houses. If the compensation fee for houses will be paid by installment to the resettlers, the last sum of amount are paid to them before the completion of building houses; 4) The land compensation fee will be paid three months before the acquisition of the land. 5) In order to ensure the smooth implementation of resettlement of land acquisition demolition, the project office shall establish finance and supervision organs at various levels, so as to ensure the timely appropriation of all the funds in place.

11.9.2 The Organ in Charge of Resettlement Finance 1) The organs in charge of compensation fund for the rural land acquisition are special finance organs of the City (District) RO, LAB, and township (town) as well as village committee.

2) The organs in charge of compensation fund for rural housing demolition and special facilities are the special finance organs under the the City (District) RO.

3) For the resettlement fund, carry out the level-by-level appropriation mechanism from the above to below. The organs at the various levels strictly carry out the financial settlement and auditing system, examine and report the fund fulfillment and utilization to the higher level at the fixed time, and put forward the rectification and remedy measures to unexpected conditions, so as to ensure the appropriation and utilization of the fund as planned.

4) Ensure the resettlement fund in exclusive use. No permission for the holdback by any intermediate organs or misappropriation for other purposes.

11.9.3 Annual Fund Use Plan The annual investment plan of each resettlement compensation fee is worked out on the basis of resettlement progress arrangement. The annual fund use plan is arranged as follows: for the first year, RMB10.7525 million yuan, accounting for 31.99% of the total investment; for the second year, RMB 22.1865 million yuan, accounting for 66% of total investment; for the third year, RMB 0.6752 million yuan, accounting for 2.01% of the total investment. For details of annual fund use plan, see Table 11.9-1.

Phased Investment Plan Statement Table 11.9-1 Total 1st Year (In 2nd Year (In 3rd Year (In Item Sub-item Investment (In Y’0000) Y’0000) Y’0000) Y’0000) I. Resettlement Compensation Fee 2566.64 752.03 1814.61 1. Land Compensation 929.53 272.35 657.18 2. Compensation for Houses and Auxiliary Facilities 1490.51 436.72 1053.79 3. Compensation for Infrastructural Facilities 43.23 12.67 30.56 4. Relocation Transportation Fee 40.95 12.00 28.95

131 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Phased Investment Plan Statement Table 11.9-1 Total 1st Year (In 2nd Year (In 3rd Year (In Item Sub-item Investment (In Y’0000) Y’0000) Y’0000) Y’0000) 5. Compensation for Enterprises and Institutions 40.04 11.73 28.31 6. Subsidies for Vulnerable Group 22.38 6.56 15.82 II. Compensation for Special Facilities 88.85 88.85 1. Compensation for Traffic 36.00 Facilities 36.00 2. Compensation for Power 19.10 Facilities 19.10 3. Compensation for 11.90 Telephone Lines 11.90 4. Compensation for 9.35 CableTV Lines 9.35 5. Compensation for Water 12.50 Resources Facilities 12.50 III. Other Costs 250.95 73.72 155.63 21.60 1. Cost for Survey, Design and Scientific Research 79.66 20.03 48.83 10.80 2. Implementation Management Cost 79.66 20.03 48.83 10.80 3. Implementation Agency Initiation Cost 38.97 18.50 20.47 4. Technical Training Cost 12.83 3.49 9.34 5. M & E Cost 39.83 11.67 28.16 IV. Basic Contingency Cost 290.64 85.16 159.56 45.92 V. Total investment (excluding tax) 3197.08 910.91 2218.65 67.52 VI. Relevant Tax 164.34 164.34 1 Cultivated Land Occupancy Tax 22.35 22.35 2. Cultivation Fee of Cultivated Land 58.89 58.89 3. Forest Vegetation 29.9 Recovery Fee 83.10 VII. Total investment (including tax) 3361.42 1075.25 2218.65 67.52

132 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

12. Resettlement Progress Arrangement

The schedule of resettlement progress arrangement should be worked out in terms of the construction contents, works quantities, time limit, resettlement objects and modes, and other factors.

12.1 Principles of Resettlement Progress Arrangement 1) For the rural resettlers’ land acquisition demolition, at the time of arranging the implementation progress, houses within the range of land acquisition demolition, in collaboration with the characteristics of agricultural production, should be arranged in slack season as much as possible, so as to minimize impact on agricultural production.

2) Demolition of the resettlers’ houses shall be phased, but should be finished before the commencement of each bid section works;

3) Notify the resettlers whose houses are required to be demolished at least 3 mouths ahead of time, and give them at least 2 months to build new houses from the notified date to the ultimate time limit of demolition. Those affected peoples may live in their former houses until completion of the new ones;

4) House building time are arranged according to the schedule of project, and could be prolonged if necessary;

5) To minimize impact on resettlers’ livelihood, the public and infrastructural facilities should be completed at least 20 days before constructing houses for resettlement.

6) To lessen the effect on reconstructed special facilities, its reconstruction should be arranged in phase of completing each bid section works.

7) Resettlers’ training should be carried out four times in slack season with each time lasting 5 days, and start respectively when agricultural production resettlement goes through its 1/3 course and at its ending.

8) Demolition and re-establishment of enterprises and public institutions should be arranged by their principal departments in accordance with project schedule.

12.2 Progress Plan 12.2.1 Project Implementation Schedule The total construction period of this subproject will be 21 months. The period before August of the first year is the preparatory period, since the works are quite dispersed with wide range, the preparatory period doesn’t exist obviously. The construction preparation will be carried out each year but be short, generally after the mobilization at different construction sites in the low water period, about one to 2 months, viz. 1 to 2 months before the commencement of the main works, and the remainder time is crossed with the construction period of the main works. The construction period of the main works starts from September of the first year to March of the third year. The April of the third year is the winding-up period.

12.2.2 Resettlement Implementation Schedule According to construction design and organization, land acquisition and resettlement should be completed in advance to ensure civil works could proceed in accordance with the project design schedule, which is the basis for formulating the resettlement implementation schedule. 1) The detailed time for the investigation on the relocation impacts is May, 2006. 2) Resettlement Plan is improved and submitted to ADB in September 2009; 3) Selection of external monitoring and evaluation agency by the end of September of 2009 and sign compensation agreements with affected parties in November 2009; 4) Rehabilitation program for the production and life of resettlers will be started from November 2009 and completed in by the end of September 2010; 5) Restoration plan of the affected infrastructures will be started from December 2009 to completed by the

133 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

end of July 2010; 6) Resettlement job training and resettlement staff training program in December 2009; 7) Preparation and submission of internal and external resettlement monitoring and evaluation reports in July and December every year; 8) The acceptance of resettlement works will be carried out in October 2010; and resettlement completion report will be carried out in November 2010.

Detailed implementation schedule is shown in the Table below:

134 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute Table 12.2-1 Implementation Schedule for Land Acquisition and Resettlement of Xiangtan City Urban Flood Control Project 2006 2007 2008 2009 2010 Activities 1 3 5 7 9 # 1 3 5 7 9 11 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Detail Impact Survey Consultation with Aps Resettlement Plan Preparation Distribute RIB RP Approval by LPMO Submit to ADB Capacity Building Efforts Selection of M&E Agency Sign Compensation Contracts Relocation Plan (Disburse funds, site leveling, house construction) Rehabilitation Plan (Disburse funds, land and non-land based rehabilitation) Infrastructures Restoration Resettlement Training Program Implementation of M&E Resettlement task acceptance Resettlement Completion Report 135

Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

Appendix 1: Resettlement Information Booklet

1. Project Background The areas in Hunan Province, which are brought into this urban flood control project, are limited to the cities above city grade in hilly sections with relatively serious flood disaster. All the cities are considered as the areas with developed economy, dense population and centralized wealth. If the cities are submerged, the loss will be great, and the economic development will be supportless. At present, the urban flood control standard in the project area is low. Flood disaster happens in successive years, seriously restricts the urban economic development and affects the live and property safety of urban people.

For Xiangtan City, as the sub-project city of the urban flood control project under ADB loans, its flood and waterlogging control capacity can be absolutely improved through the project implementation. The flood control standard will be enhanced from the current 10-year occurrence to 100-year occurrence; and the waterlogging control will be enhanced from the current 5-year occurrence to 20-year occurrence. That can greatly reduce the urban flood control burden of Xiangtan City and benefit the normal social development. The main engineering measures involved in land acquisition and relocation of Xiangtan City Urban Flood Control Project are: reinforcing and new-building of embankment, re-new, reconstruction and new-building of culvert sluices and power allocation station, and there also is temporary land acquisition as project construction site and borrow area, etc. The areas in the project land acquisition, with the residents’ production and living seriously affected by the project construction, are considered as the affected areas of the project land acquisition and relocation. The final land acquisition and relocation range are partially adjusted with the deepening of the designed depth. However, due to detailed survey conducted, such adjustment will be very limited and final scope of impact figures will not expect any major changes.

2. Project Affected Area and Quantity According to the investigation, the project land acquisition and relocation affects 2 sub-districts, 6 administrative villages. In which, there are various project permanent land acquisition of 376.2 mu, of which, the state-owned land accounts for 201.33mu (including enterprises and institutions land use of 27.2 mu, urban residential land use of 12mu and other land use of 162.13mu), the collective land accounts for 174.87mu (including paddy field of 27.3mu, dry land of 28.57mu, pond of 60mu, residential site of 16.2mu, and flood land of 42.8mu). The project involves the relocated residential and non-residential houses of 28947.41m2 (including brick concrete structure of 12989m2, brick wood structure of 9920m2, simple structure of 1515m2). The number of resettlement families affected by relocation is 131 households.

3. Resettlement Plan The project resettlement plan is organized and guided by Key Project Office of Water Resources Department of Hunan Province and the local People’s Governments of various grades; and is compiled by the technical assistance professionals according to particular affection investigation, on the basis of sufficiently soliciting the villagers’ opinions. To execute the principle of “Resettlement for Development”, adopt the rehabilitation strategy of: “basing on the land and agriculture” for the resettlement plan. Through re-adjusting and developing the big-shed vegetable and stockbreeding, the resettlement plan offers the production basis for short-term livelihood ensurence and long-term developing potential, which will combine the resettlement, rehabilitation and the regional economic development brought by this project, and make the resettlers’ livelihood reach or surpass the living level before resettlement.

4. Policy Bases and Objectives of Resettlement Plan 4.1 Policy Bases 1) Land Administration Law of the People’s Republic of China (NO.8 Decree by Chairman of the PRC issued on August 29, 1998, starting implementation since January 1, 1999) 2) Implementation Regulations for the Land Administration Law of the People’s Republic of China (NO. 256 Decree by the State Council of the PRC issued on December 27, 1998, starting implementation since January 1, 1999) 3) Houses Demolition Administration Regulations of the PRC (NO. 305 Decree by the State Council of the PRC

136 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

issued on June 13, 2001, starting implementation since November 1, 2001) 4) A Decision by the State Council about Deepening Reformation and Strictly Enforcing Land Administration (The GF [2004] NO.28 issued by the State Council on October 21,2004) 5) Land Acquisition Compensation and Resettlement Regulations for the Construction of Large and Medium Scaled Hydro & Hydraulic Projects (No. 471 Decree by the State Council of the PRC issued on July 7, 2006) 6) Methods of Hunan Province for Implementing the Land Administration Law of the People’s Republic of China (approved by 14th congress of the Standing Committee of 9th People's Congress Council of Hunan Province on March 31, 2000) 7) Methods of Hunan Province for Implementing the Urban Houses Demolition Administration Regulations(NO. 157 Decree by the People’s Government of Hunan Province issued on July 12, 2002, starting implementation since September 1, 2002) 8) Notice on the Standard of Annual Output Value of Hunan Provincial Land Acquisition Issued by General Office of Hunan Provincial People’s Government (XZB [2005] No.47) 9) Resettlement Policy by ADB: Resettlement Handbook—Feasible Practice Guide

4.2 Policy Objectives 1) Avoid or reduce to the minimum the tangible material quantity of land acquisition relocation and resettlement by adopting measures of engineering, technique and economy, etc.; when the land acquisition is unavoidable, effective measures shall be adopted to best reduce the affection caused by the land acquisition relocation to the production and livelihood of local residents. 2) In the preparation period of this project, process the social economic investigation and compile corresponding resettlement plan; 3) Resettlement shall be on the basis of relocation tangible material indexes and compensation standards, to aim at improving or at least recovering the original living level of the resettlers; 4) Advocate resettlement of development. The rural resettlement adopts the policy of: making the land as the basis, depending on the second and third industries of the local area to widen the employment access; 5) Encourage the affected peoplenel to participate in the resettlement plan; 6) The resettlers are considered in priority to be resettled in the original community; 7) The resettlers and original residents in the resettlement area are getting benefit from the project.

4.3 Compensation Standards

4.3.1. Rural Houses and Attachments 1) The compensation of all the houses are obtained according to replacement value, and no depreciation charge is allowed. Available materials belong to the relocatees, and they also can use them to build new house. These compensation rates will be used by resettlement office as lowest limit. The implemented compensation rates will be based on actual appraised values in the project areas. 2) Resettlement institution helps the rural relocatees to move into the new house, and each person shall get the compensation for infrastructures, including water drinking and lighting, etc. Such compensation should be based on topographical condition and followed the relevant provincial regulations. 3) The moving allowance for the relocates includes moving expense, living subsidy, transfer allowance for temporary housing, and secondary moving expense. The actual expense will be based on distance of moving and length of transfer period. 5) Effective measures are employed by the resettlement institution in the course of implementation to help the vulnerable (the old, the handicapped, the weak and woman-headed households).

4.3.2. Non-Residential Structures 4.3.2.1: Enterprises and Institutions 1) For all non-residential structures, the basic rehabilitation strategy is have cash compensation. The compensation should follow the compensation standards for urban housing structures at replacement value without depreciation. 2) Moving allowance for non-residential structures under eneterprises and institutions should be based on amount of floor spaces.

137 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

3) Equipment Compensation for affected enterprises includes compensation for dismantling, and reinstallation of affected equipments. 4) The enterprises or institutions that are affected with their normal operation are provided with compensation for the loss of their production during interruption. The compensation for production interruption should not be more than 6 months.

4.3.2.2: Small Individual Shops 1) All affected small shops are based on privately owned residential structures, and non of them are formal commercial buildings. These structures are compensated as urban residential houses by following “ Municipal Method for Urban House Demolition and Relocation”. The compensation should follow replacement value with no depreciation.

2) During house construction and relocation, the affected small shops are compensated for the loss of business during interruption, which include compensation for lost wages among affected employees. The compensation for loss of business and moving allowance should be based amount of floor spaces affected. The length of interruption should not be more than three months. 4.3.3: Scattered Trees The Project provides compensation for removed trees or compensation for relocating trees. 4.3.4: Land Acquisition and Occupation 4.3.4.1: Stated Owned Land 1) For affected urban industrial land, they will obtain through land use right purchase. The compensation will follow similar land acquisition and rehabilitation practice in Xiangtan City. 2) For affected urban residential structures, they will adopt cash compensation method. The part of land compensation will be based on market appraisal value. 3) For the acquired urban waste land such as river bed and unutilized land, they will be allocated to the project use without compensation.

4.3.4.2: Collectively Owned Rural Land 1) For the acquired rural land or cultivated land, the affected villages are provided with land compensation, resettlement subsidy, and green crop compensations. In addition, for those villages with adequate land holding, they carried out land readjustment so that all affected people could get sufficient farmland or production means. While land compensation and resettlement subsidy will be used by the affected village groups. For those village groups with limited land holding, and could not carry out land readjustment, the affected people received full resettlement subsidy and not less than 75% of land compensation.

2) The average annual output value for the acquired farmland will follow Hunan Government No. 47 Decree in 2005; and compensation multiples will follow relevant national laws and provincial regulations. The land compensation will be set at 10 times of AAOV and resettlement subsidy will be set at 6 times of AAOV. For acquired fruit garden, residential plot, and other rural lands, the compensation follows relevant regulations for adequate compensation.

4.3.4.3: Temporary Land Occupation 1) Compensation for temporary land occupation include compensation for green crop, compensation for land occupation, and compensation for land restoration. The length of temporary land occupation will be 2 years, If temporary land occupation exceeds 2 years, temporary land occupation should be re-applied.

2) Compensation for land occupation will be mainly used to compensate the total outputs lost during the land occupation, which are based on original average annual output value and length of land occupation.

3) When temporary land occupation is completed, the occupied land areas should be restored and returned to the affected villages. For the affected dry farmland, they should be restored into original condition and cost of land restoration are based on actual cost.

138 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

4.3.5: Special Infrastructure Facilities For the affected different types of infrastructure facilities, they are rehabilitated or reconstructed based on actual conditions, and original scale and functions. Based on amount of investment for different affected infrastructure facilities, the project sponsor provide compensation to the relevant department agencies in charge of these facilities and organize the implementation.

4.4 Payment of Compensation Fee 1) The relocation compensation for land acquisition and other costs are paid to the affected collectivities and individuals by the project Office through the city’s resettlement Office; 2) Compensation for houses are paid before the resettlers start building; in case of paying in terms, the final expense shall be paid before the building completion; 3) The compensation for land and other facilities shall be paid to the relevant communities and individuals before land acquisition.

4.5 Rehabilitation Strategy To mitigate the economic impacts incurred due to the project, the project group conducts the land adjustment within the scope of villages; develop the shed vegetables as well as breeding, or directly issue the compensation fees to the APs. The relocatees are relocated within the original villager’s group or by way of the concentrated exchange of property right replacement.

5. Responsible Institution for Resettlement To ensure the successful and effective implementation of the resettlement plan, institution net-work are set in government of various grades to benefit for being responsible for planning, coordinating, implementing and monitoring the resettlement activities. The institutions set or involved in the land acquisition and relocation of this project are: 1) Provincial Project Resettlement Leading Group 2) Provincial Project Resettlement Office 3) City Project Resettlement Leading Group 4) City Project Resettlement Office 5) Township (Sub-District) Resettlement Office 6) Village Committee or Residential Committee 7) External Individual M&E Institution

6. Appeal Disposal The resettlement plan is considered for the affected area of the overall project and generally planned for the resettlement scheme. In the implementation, it may arouse the resettlers’ complaints because of the changing of the actual situation and the deviations in operation. To effectively resolve these problems for successfully implementing the project construction and land acquisition, the open and effective appeal channel has been established.

1) Appeal Channel ① Offices for citizens’ complaint letter and visit (including resettlement), which can receive, investigate and process the common appeal problems of resettlers’ appealing to higher authorities for help, are established in the city (city), city and province of the resettlers. ② The resettlement management institutions which are set up according to the laws, have the grade-to-grade authority, from the province, city to city, to supervise the subordinate for whether processing the resettlement according to the laws; can process the appeal affairs of the resettlement. ③ Independent Resettlement M&E Institution supervises the resettlement implementation according to the relative national regulations and is responsible for protecting the legal right and benefit of the resettlers; and can process and reflect to the relevant department the appeal problems of right injuria for the resettlers;

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④ Jural departments of administration supervision, audit, disciplinary inspection, judicial administration, inspection are established in various grades of State, province, city and city. They can process the cases about irregularity and principle violation appealed by the resettlers.

2) Appeal Procedures There are two kinds of appeal procedures: (1) If any resettler find any problems in land acquisition and house demolition, he/she can reflect to village committee (residential committee), which could consult with local resettlement office directly, or appeal to superior resettlement office in oral form or written form. After superior resettlement Office accept the appeal, keep records and consult with village committee and local resettlement office within 10 days. If the contradiction and dispute cannot be solved, in accordance with appeal channel, village committee can appeal to administrative setups step by step such as project office, resettlement management setup, resettlement monitoring setup, complaint office, administrative supervision, disciplinary inspection and procuratorial department etc.) According to Administrative Procedure Law of People’s Republic of China. If resettlers are still not satisfactory, appeal to people’s court directly. (2) From May. 2003, ADB adopts a new accountability mechanism that enables people whose rights are violated by ADB loaned project may give opinion, find solution and report possible action violates ADB policies and procedures (including safeguard policies). In case the project-affected people are not satisfied with the resettlement plan, they can make their appeal through ADB accountability mechanism. The accountability mechanism provides independent forums and channels, where person affected by ADB financed project can raise a question, seek solutions, as well report possible violations of ADB policies and procedures.

Resettlement Office is responsible for keeping records of all appeal problems and solving process and keeps in the archives.

140 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

长沙

Jing Shaoshan

Shao

Yijiawan tan zhu dike Yang tian Yangtianhu Jingjiang Dike Tanshao Expressway Zhuzhou hu Xiang He dike Yangtianhu protection area

ping tan Expressway Zhubugang (newly-built) dike

ring connection线 No.2 Hexi Protection Area Tian North Zhuzhou line xing Xiangtan Station great Yuhu District Government dike Xiangtan City Flood Prevention Headquarter 320 national road Bantangpu He Yuhu District Government Yuetang District Government Dike foundation antiseepage treatment with the chainagexi No. 0+000-0+346 河 Zhuzhou dike 十

Lichunhewan Gongnong(newly-built) (2 155KW) Yanjianggang (3 155KW) Wan Yang Xiangtan connection line of Jingzhu Expressway Zaojiabu Qiu Shixing mountain Qiu zi mei xin zhou Hedong Protection Area Majiahe Zheng dike jian bridge long Gu dike guang dike sang New ferry Dike foundatoin antiseepage treatment with the chainage no.K16+400-K17+350 area Wuxing zhou (2 155KW) Xiangjiaba (1 155KW) 320 national road great Dike protection dike Xiangjiatang great Yangtang Tieniubu (1 155KW) (2 95KW) Sheshangang (2 155KW)

development

nan Yisu River

Dongjiang village Cheng Hunan Hydro & Power Design Institute

Xiangtan City Urban Heng yang General Layout

CAD Scale Date 2007.03 GSDJZ No. 1801051 HND/A721C-1-03

141 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

上

上

142 Xiangtan City Urban Flood Control Project Resettlement Plan Hunan Province Hydro and Power Design Institute

上

143

上

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Appendix 2: Xiangtan Subproject Due Diligence Review Report (Revision)

1. Introduction 1.1 Project Background

Xiangtan Urban Flood Control Subproject is one of 35 subprojects of Hunan Flood Management Sector Project Utilizing ADB Loans (namely Hunan Urban Flood Control Project for Hilly Areas). After many years of regulation, Xiangtan Urban Flood Control has formed three independent flood control circles, i.e. Hexi, Hedong, Yangtianhu. But the flood control subproject system is not perfect: Hedong flood control circle is not fully closed, some dykes fail to meet the flood control standard. As a result, when there’s a torrential rain, flood disaster occurs from time to time. It is estimated that the city suffered severe flood disasters in 1976, 1994, 1995, 1997 and 1998, etc., among which flood disaster in 1994 caused the biggest loss, including direct economic loss of RMB 210 million yuan, 545,000 people were affected by the disaster, Hedong dyke in Xiangtan City bursted, 2142 houses with an area of 23,100 m2 collapsed and industrial and mining enterprises idled for more than 100 days. With the economic development, urban scale is constantly enlarging, population and property increase year by year. If an 100-year occurrence flood occurs, with current facilities, Xiangtan City would be inundated with a flood of water, water on the street of Hedong urban area would be 3~5m deep, water in Hexi urban area would be 2~10m deep, inundated area in Chengnan development zone would reach 29.57km2, nearly 60,000 people would be affected by the flood (P=2%), No. 320 National Highway and 3 trunk railways would be flooded and transportation would be cut off, the losses caused by flood and waterlogging disaster would devastating. So, with concentrated properties, dense population and low flood control capability, Xiangtan urgently needs to quickly elevate the urban flood control and waterlogging capabilities to minimize disaster-caused losses by strengthening the construction of urban flood control and waterlogging projects. It is very necessary for building a safe livelihood and production environment, ensuring the safety of people’s lives and properties, guaranteeing the city’s sustainable economic development, and it will have substantial social and economic benefit. 1.2 Why Due Diligence is Required

As per the stipulations of ADB, no startup of land acquisition and relocation of relevant subprojects shall be launched before the approval of RP by ADB. However, the existing Xiangtan Subproject RP hasn’t been approval by ADB, but its land acquisition and relocation has almost been completed, which obviously violates the relevant stipulations of ADB. Therefore, the due diligence review of this subproject shall be carried out as soon as possible as required by ADB, so that the ADB can timely and comprehensively get

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known of the land acquisition and relocation status regarding this subproject, which is favorable for ADB to quicken the examination and approval progress to the RP of this subproject. 1.3 Whether RP has been Followed

There are 3 differences between the actual land acquisition and relocation of Xiangtan Subproject and the RP draft, which are listed as follows: ① Implementation time schedule: according to the RP draft, the land acquisition and relocation starts from September 2007 and ends till April 2009; while the actual land acquisition began in 2005. Until now 75% of land acquisition has been completed, and 78% of demolition has been completed. ② Compensation standards for land acquisition: the executed land acquisition policy before 2005 is based on the Compensation and Resettlement Methods for Land Acquisition and Relocation of Xiangtan City (TZF [2001] No. 18), whileas the RP draft is compiled in accordance with the Notice About Releasing Hunan Land Acquisition Annual Output Standard by General Office of Hunan People’s Government (XZBF [2005] No. 47). The land acquisition has been partially completed prior to the formal implementation of XZBF [2005] No. 47 document, therefore the executable prices of a number of land categories in the actual land acquisition are lower than the compensation standard stated in the RP draft, including dry land, flood plain and land used by enterprises and institutions. The executed land acquisition policy after 2005 is in conformity with “XZBF [2005] No. 47” document specified in RP draft. But during the actual implementation process, the employer has difficulty to reach agreement with people and enterprises affected by land acquisition and house demolition on the planned compensation standards, so the actual payment delivered by the employer is equal to or higher than the planned standards in the RP. ③ Subsidies for moving and transportation: the planned moving and transportation fees (including RMB 100 yuan per capita for handling fees, RMB 100 yuan per capita for subsistence subsidies, RMB 200 yuan per capita for temporary house subsidies and RMB 200 yuan per capita for secondary handling fees) are standard compensation at RMB 600 yuan per capita. Whileas, the actual executable standard is RMB 2,500 yuan per household for resettlement subsidies of relocatee in transition period and RMB 1,000 yuan per household for moving and transportation fees, which are RMB 3,500 yuan per household in total, higher than the planned standard. ④ Resettlement investment: total investment of resettlement specified in the RP draft is RMB 28.7845 million yuan, however, it’s estimated that the actual investment of resettlement will be totaled RMB 33.11 million yuan. The reason that the investment increased mainly because the executable compensation prices of land acquisition and houses demolition are largely higher than the 146

compensation standards specified in the RP draft. 2. Resettlement Impacts by the Project 2.1 Scope of Resettlement Impacts

According to Xiangtan urban flood control planning, there are three flood control circles, i.e. Hexi, Hedong and Yangtianhu in the urban area, with a total dyke length of 61.56km. This subproject mainly consists of heightening and reinforcing 11.8km dyke section of Chengnan dyke, constructing new dyke of 792m in the section of Shaoyaogang River, reconstructing Zubugang electrical drainage station and increasing its capacity etc. The area within the land acquisition scope and areas severely affected resident’s livelihood and production by project construction and which is irreparable are in the category of land acquisition and house demolition areas. The land acquisition and houses demolition regarding this subproject have impacts on Dongping of Yuetang and Yuhu districts in Xiangtan City and 6 villages (residential committee) in 2 of Dongshan’s township and towns (sub-district). 2.2 Amount of Land Acquisition

1) Permanent Land Acquisition The permanent land acquisition due to this subproject construction involves 6 villages (residential committee) in 2 districts and sub-districts, and covers various categories of land of 499.8mu, including 307.8mu state-owned land (including 27.2mu industrial land, 12mu residential land and 286.6mu land for other purposes) and 192mu collective-owned land (including 39.6mu paddy field, 34.7mu farming land, 60mu water pond, 16.2mu villagers’ housing plot and 41.5mu flood plain). The statistics of investigation results of permanent land occupation are indicated in details in Table 2.2-1.

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 Statistics Table of Investigation of Permanent Land Occupation Affected land by Urban Flood Control Project of Xiangtan City Table 2.2-1

Village Total Collective-owned Land (mu) State-owned Land Rural Township(sub- Water Flood Industrial Residenti Other District (Community) (mu) Total Farming land(mu) Housing Total district) Pond Plain Land al Land Land Plot Paddy (mu) Subtotal Dry Land (mu) (mu) (mu) (mu) (mu) (mu) (mu) Field Total 499.8 192 74.3 39.6 34.7 60 16.2 41.5 307.8 27.2 12 268.6

Chengnan District 387.5 170 74.3 39.6 34.7 38 16.2 41.5 217.5 9 208.5 Dongshan Sub- 4 387.5 170 74.3 39.6 34.7 38 16.2 41.5 217.5 9 208.5 district Zhangjiang 67.7 27.5 7.8 4.7 3.1 3.8 2.1 13.8 40.2 40.2 Village Tazi Village 66.7 41.2 17.3 8.4 8.9 9.3 4.8 9.8 25.5 3.2 22.3 Dongshan 162.8 71.3 36.7 20.6 16.1 16.2 6.7 11.7 91.5 5.8 85.7 Village Chengzhong 90.3 30 12.5 5.9 6.6 8.7 2.6 6.2 60.3 60.3 Village Yuetang District 112.3 22 22 90.3 18.2 12 60.1 Dongping Town 2 112.3 22 22 90.3 18.2 12 60.1 Sub-district Hengjie 66.9 14 52.9 Community 14 3.4 7.8 41.7 Wanfu 45.4 8 37.4 Community 8 14.8 4.2 18.4

148

2) Temporary Land Acquisition Temporary construction land use refers to temporarily borrowed land during subproject construction period, including occupation by soil and stone material yards, construction factory, construction warehouse, temporary living area during construction period and temporary construction road, etc. ① Temporary construction buildings of this subproject: such as construction factory, construction warehouse, temporary living area during construction period covers an area of 1860 m2 (land occupation area 6330 m2). They are mainly located along the dyke and within the permanent land acquisition scope, so their layout has no impact on temporary land occupation. ② The implementation of this subproject will cause damages to the current road, and corresponding compensation fees must be paid to municipal department. Because the compensation fees are included under this subproject contract as part of the subproject budget, the compensation fees will be paid by the construction contractor. As a result, the temporary road occupation of this subproject construction and its compensation budget will not be included in this report. ③ The temporary land acquisition of this subproject mainly involves soil material yards occupation, including soil material yard in Shuangma industrial park, Dongtai village, Hengzhou and block stone material yard in Majiahe. The block stone materials are directly purchased from finished products. The exploiting area of these three soil material yards is 215,600m2, involving 3 sub-districts, with 390.9mu various land acquired for temporary purposes, including 42.7mu paddy field, 41.1mu dryland, 134.4mu timber forest, 146.8mu shrubbery forest land and 25.9mu wasted grass land, with averaging 2-year land borrow period. The statistics of investigation results of temporary land acquisition are indicated in details in Table 2.2-2

Statistics Table of Temporary Land Acquisition Investigation for Xiangtan Urban Flood Control Subproject Table 2.2-2

Temporary Land Acquisition (mu) Remarks Category of District Origin Material Yard Paddy Timber Shrubbery Wasted Total Dryland Field Forest Forest Land Grass Land Soil Material Shuangma Yuetang District 142.7 8.4 64.3 55.5 14.5 Yard Industrial Park Chengnan Soil Material Dongtai Village 90.3 9.4 37.3 43.6 Development Zone Yard Soil Material Hengzhou 90.3 9.8 32.8 47.7 Yard Wanfusi Fishing Spoil Yard 67.6 42.7 13.5 11.4 Ground Block Stone Majiahe Purchase Material Yard Total 390.9 42.7 41.1 134.4 146.8 25.9

2.3 Number of Affected Households and People

1) Affected Population by Land Acquisition Since this subproject is distributed along Xiangjiang River in linear shape, only some residents will lose their land due to this subproject construction. The planned land acquisition of this subproject will have impacts on 228 residents within 54 households, with 0.34mu farming land lost per capita. 2) Demolished and Relocated Population The subproject plans to involve 594 demolished and relocated people within 167 households and demolish residential houses of 17,476m2. 3) Affected Staff of Enterprises and Institutions The survey indicates that this subproject affects 7 enterprises and institutions, which possess 378 staff members. The affected houses are the staff houses or auxiliary production houses, so this subproject construction brings no impact on their normal production or operation. 4) Affected Individual Businessmen The survey indicates that the land acquisition and houses demolition within the subproject scope don’t affect individual businessmen. 5) Total Affected Population The survey indicates that the land acquisition and houses demolition due to this subproject have impacts on 1200 people within 221 households, of which, 228 people within 54 households need land acquisition without house demolition, and 594 people within 167 households need house demolition without

land acquisition. And the number of affected staff is 378. Among the affected population due to land acquisition and demolition, 136 agricultural population need economic rehabilitation, and 594 people within 167 households need new house construction. The various affected population are indicated in details in Table 2.3-1.

Affected Population Summary for Land Acquisition of Xiangtan Urban Flood Control Subproject

Table 2.3-1 Needing Land acquisition and no Houses demolition and Needing demolishing Total economic Staff Township (Sub- Village (Residential houses demolition no land acquisition houses Affected type rehabilitation district) Committee) No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of households population households population households population households population households population I. Permanent land 221 822 54 228 167 594 167 594 136 378 occupation (1) Residential houses 221 822 54 228 167 594 167 594 136 demolition Sub-district of 113 389 113 389 113 389 Dongping Town Hengjie Community 76 232 76 232 76 232

Wanfu Community 37 157 37 157 37 157 Sub-district of 108 433 54 228 54 205 54 205 136 Dongshan Zhangjiang Village 18 72 11 45 7 27 7 27 26

Tazi Village 31 127 15 63 16 64 16 64 30

Dongshan Village 43 165 21 90 22 75 22 75 64

Chengzhong Village 16 69 7 30 9 39 9 39 16 (2) Non-residential 378 houses demolition Enterprises and 378 Institutions II. Total affected 221 1200 54 228 167 594 167 594 136 378 population

2.4 Loss of Buildings and Other Assets

The residential houses to be demolished due to this subproject involve 2 sub-districts of Dongping Town and Dongshan, with 594 persons in 167 households in need of relocation, residential houses of 17,476m2 to be demolished (including brick-concrete structures of 9,394m2, brick-wood structures of 6,567m2 and wing rooms of 1,515m2); The fence wall of 668m2 and cement sunning ground of 160m2 suffer from impacts due to this demolition. The surveys of various houses within the subproject scope are indicated in details in Table 2.4-1. The houses of 7 enterprises and institutions within the land acquisition scope due to this subproject in RP are affected, with 16,015m2 non-residential houses demolished, including brick-concrete structures of 12,989m2 and brick-concrete structures of 3,026m2; In addition, 1 water tower and 2 chimneys suffer from impacts due to this demolition. The surveys of various enterprises and institutions within the subproject scope are indicated in details in Table 2.4-2. The professional projects within the land acquisition scope due to this subproject involve simple roadway of 3.5km, 1 culvert and 5 electric irrigation ports; 10KV high-voltage line of 0.5km and 380V low-voltage line of 5.56km; 4 power transformation facilities; telephone line of 2.38km; wired TV line of 2.67km. The involved professional projects within the subproject scope are indicated in details in Table 2.4-3. The land acquisition and houses demolition within the subproject scope don’t affect individual businessmen.

Residential Houses and Auxiliary Facilities Demolition Survey Table of Xiangtan Urban Flood Control Subproject

Table 2.4-1

No. of Residential houses Village No. of population (person) Total Principal room (m2) Wing room Auxiliary structures household Township (Sub- Sunning Type (Community) (Household) Non- 2 Brick- Brick- 2 Fence wall district) Agricultural (m ) (m ) Total agricultural concrete wood ground population population structure structure (m2) (m2)

Total 167 594 389 205 17476 9394 6567 1515 668 160

I. Town 113 389 389 8777 5374 2797 606

Sub-district of 113 389 389 8777 5374 2797 606 Dongping Town

Hengjie Community 76 232 232 5885 3598 1867 420

Wanfu Community 37 157 157 2892 1776 930 186

II. Countryside 54 205 205 8699 4020 3770 909 668 160 Dongshan Sub- 54 205 205 8699 4020 3770 909 668 160 district Zhangjiang Village 7 27 27 1105 489 504 112 40

Tazi Village 16 64 64 2716 1254 1187 275 218 40

Dongshan Village 22 75 75 3473 1614 1467 392 354 120

Chengzhong Village 9 39 39 1405 663 612 130 56

Enterprises and Institutions and Auxiliary Facilities Planning Demolition Survey Table of Xiangtan Urban Flood Control Subproject Table 2.4-2

Principal room (m2) Auxiliary structures Unit name Total (m2) Reinforced concrete Brick-concrete Water tower Chimney structure structure (piece) (piece)

Total 16015 12989 3026 1 2 Cast Tube Manufacturing 9384 7470 1914 1 1 Subsidiary

Dongping Printing Factory 429 429

Xiangtan Waterway Station 447 447

Dongping Paper Bag Factory 396 396

Hedong Flood Control Warehouse 1022 785 237

Xianghu Sandstone Yard 970 724 246

Ship Repair Shop of the Municipal 3367 2738 629 1 Water Transpiration Company

Table of Investigation for Land Occupation Impact of Xiangtan Urban Flood Control Subproject on Special Facilities

Table 2.4-3

Traffic facility Power transmission facility Postal facility Irrigation works Telephone Wired TV Electric irrigation District Township (Sub-district) Village (Community) Simple Transformer Culvert High-voltage Low-voltage line line Station roadway (piece) line(km) line (km) (km) (piece) (km) (km) (piece)

Yuetang District

Dongping Sub-district 2 1 2 0.5 1.8 0.8 0.9 1

Hengjie Community 0.5 0.5 0.8 0.5 0.3

Wanfu Community 1 1.5 1 0.3 0.6 1

South Urban District

Dongshan Sub-district 4 1.5 3.8 4 1.58 1.77 4

Zhangjiang Village 0.55 1.3 1 0.6 0.25 1

Tazi Village 0.15 1.65 1 0.3 0.47

Dongshan Village 0.8 0.7 1 0.48 0.7 2

Chengzhong Village 0.15 1 0.2 0.35 1

Total 2 6 1 3.5 0.5 5.6 4 2.38 2.67 5

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2.5 Analysis of Impacts

2.5.1 Impact Characteristics of Subproject

1) The affected houses and farming lands are comparatively less due to the land acquisition and house demolition of this subproject, of which, the affected population account for 5.9% of the total population in the affected villages, and the area of acquired farming land accounts for 1.1% of the total farming land in the affected villages. 2) The house demolition due to this subproject construction bring impacts on 594 people within 167 households and residential houses of 17,476m2, which mainly focus on 6 villages (residential committee) of 2 (towns) sub-districts including Dongping and Dongshan. Among the demolished houses, all the houses are of brick-concrete and brick-wood structures, of which, 53.75% of the total demolishing house area are brick-concrete structures. 3) This subproject construction needs permanent land acquisition of 499.8mu, including 74.3mu farming land (including paddy field of 39.6mu and dry land of 34.7mu), accounting for 14.87% of the total land acquisition, and the remainder 85.13% are made up of water ponds, flood plain, resident housing plot, residential land, industrial land and other lands. The directly affected villagers due to this subproject are 228 people within 54 households, and 136 people need relocation. The farming land within the land acquisition scope is distributed in 4 villages, Dongshan Sub-district, Chengnan District with linear and scattered characteristics. 4) There are 7 enterprises and institutions suffering from the land acquisition and houses demolition within the subproject scope, which have their staff houses or auxiliary production houses, so this subproject construction brings no big impact on their normal production, operation or business. 5) Except for a few high and low voltage power transmission lines and telecommunication lines, there are no important special facilities within the land acquisition and house demolition scope due to this subproject, and the affected facilities are all small rural infrastructures. 2.5.2 Comment on Analysis of Impacts

The original production system in the affected areas will be damaged due to this subproject construction, which has a certain impact on local production and living environment. Farmers will only partially lose their farm income because of the loss of land resources, which enforce them to adapt new work and living environment. During the process of engineering design, the design unit fully considers the destroy to local production and living system due to the land acquisition of this subproject, continuously optimizes the engineering design and takes engineering measures to decrease the scope of land acquisition and house demolition as much as possible and delay the impacts on local production and living conditions due to the subproject construction. Regarding the analysis of villager’s groups, this subproject construction will have

Changsha Xinghuan Water & Electricity Engineering Technology Development Co., Ltd. 157 Due Diligence Review Report on the Hunan Flood Control Project for Hilly Areas Utilizing ADB Loans impact on 6 villages (residential committees), with permanent acquired farming land of 74.3mu. 4 villages need some economic rehabilitation, and the current farming land in these villages is 0.58mu per capita. The rest farming land after occupation is 0.578mu per capita, with the proportion of 0.34%. The proportion of acquired farming land of 7 villager’s groups is below 10% in 8 involved villager’s groups. The incomes of affected people due to this subproject are mainly non-agricultural incomes (The agricultural income of each family is RMB 3,865 yuan, which accounts for 24.19% of the total RMB 15,975 yuan). Through the above analysis, this subproject construction will have limited impacts on the agricultural production of the involved villagers’ groups. Regards the whole project site, the impacts are only partial, it will not exert a big impact on the local industrial and agricultural production, people’s livelihood and social and economic development. Meanwhile, Since this subproject is distributed along Lujiang River in linear shape, most areas will suffer from flood disaster, which restricts the rapid development of local economy. The subproject construction offers a chance for the relocatees to rebuild production system and social system. If the subproject construction is finished, it will greatly improve the flood control ability along the river, reduce the disaster degree caused by the flood and maximally provide good environment for guaranteeing people’s life and property safety, which is good for the economic development of the proposed subproject site. In addition, combine the plan of adjusting the agricultural planting structure, improving the irrigation works of the farmland and improving the medium and low production farmland for relocatees to fully use the potential of land resources and carry out the farming land protection policy in the proposed subproject site according to the Land Management Law as well. As per the principle of “Reclaiming the occupied farming land” for compensation system of occupied farming land, compensate the lost farming land to reach occupation and compensation balance. By means of the RP, this subproject has adopted the measures of relocating the relocatees to a region with superior natural, traffic and social conditions, and of offering preferential and supportive policies, technologies, finances and materials, so as to help the relocatees restore and reach the level of their original livelihood. 3. Implementation Procedures 3.1 The Key Steps of Land Acquisition Process for the Proposed Subproject Site

1) Application and Approval Procedures In July 2005, the application and approval procedures of land acquisition for Xiangtan Subproject were completed. The procedure numbers are “TGTZF[2005] No. 36” and “Hunan People’s Government examination and approval form for agricultural land transfer and land acquisition [2005] ZGTZ No. 120”. 2) Bulletin In August 2005, the bulletins on land acquisition and house demolition were released, which began to carry

Changsha Xinghuan Water & Electricity Engineering Technology Development Co., Ltd. 158 Due Diligence Review Report on the Hunan Flood Control Project for Hilly Areas Utilizing ADB Loans out of the same year. 3) Dissemination In July 2005, dissemination was done by means of local TV and newspapers, and relocatee’s information manual was distributed, and the affected communities (villages) were gone deep into to convene symposiums, disseminate resettlement polices and solicit relocatees’ opinions. 4) Entrusting Agency On July 31, 2005, Xiangtan Water Resources Bureau and Urban and Town House Demolition Office of Xiangtan City signed the Contract Agreement for Operation Work of Land Acquisition and House Demolition. 5) Signature of Agreement The investigation and determination of actual object index are made by the working staff of the employer (land acquisition and houses demolition department), design technician, the working staff of Urban Land Acquisition and House Demolition Office of Xiangtan City, the first representative of the village (village committee) and households of house demolition together. The Land Acquisition and House Demolition Office of Xiangtan City entrusted by the employer needs evaluate the acquired land and demolished houses. The employer takes charge of the signature of related agreement and reports it to the Land Acquisition and House Demolition Office for filing. 3.2 Basic Timelines of Land Acquisition Process for the Proposed Subproject Site

As per the RP draft, the land acquisition and relocation of Xiangtan Subproject plans to start from September 2005 and end till March 2009, and the time limit is 18 months; However, the actual land acquisition and relocation began in 2005, and until now 75% of land acquisition and 78% of relocation have been completed. It’s estimated that all land acquisition and relocation will be completed in December 2009. The Comparison Table of Resettlement Plan and Implementation Progress of Xiangtan Subproject is indicated in detail in table 3.2-1: Table 3.2-1 Comparison Table of Resettlement Plan and Implementation Progress

Latest RP Implementation Progress

Subproject Current Progress Commencement Completion Commencement Anticipated Time Limit Time Time Time Completion of Land Completion of Demolition Completion Time Acquisition and Relocation

Xiangtan Sep. 2005 Mar. 2009 18 months 2005 75% 78% Dec. 2009

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3.3 Current Status

3.3.1 Implementation of Civil Work

The civil works of Xiangtan Subproject has two bid sections, which are bid section of Xiangtan Shaoyaogang project and bid section of Xiangxiang Chengnan dike project. The detailed implementation progress is indicated in Table 3.3.1-1. 1) The contract price for bid section of Shaoyaogang project hits RMB 14.467 million yuan; the construction units are Hydro & Electric Power Construction and Installation Engineering Corporation of Yunyang City, Hunan Hydro & Electric Power Construction Corporation, Changsha Zhongge Construction Group Co., Ltd. of Hunan, Changsha Xiangyu Construction Engineering Co., Ltd. and Hunan Dongting Hydro & Electric Power Construction Co., Ltd.; the supervision unit is Hunan Hydro & Electric Power Supervision Consultant Corporation; its commencement time is Oct. 5, 2005; all works have been completed; the investment of RMB 14.467 million yuan has been completed, accounting for 100% of the total investment for this bid section. 2) The contract price for bid section of Xiangxiang Chengnan dike project hits RMB 19.056 million yuan; the construction unit is Hunan Hydro & Power Engineering Corporation; the supervision unit is Hunan Jianghe Hydro & Electric Power Engineering Construction Supervision Corporation; its commencement time is Feb. 12, 2008; the cumulative works have been completed: For the section of K3+060 ~ K11+800, the bank of the dike has been entirely completed, 85% protection slope has been completed and 90% earthwork of the dike has been completed. For the section of K2+360 ~ K3+060, the mortar rubble bank project (driven cast-in-place pile and base slab plate) has been entirely completed; For the section of K0+820-K2+360, the mortar rubble bank project has been entirely completed, and 70% back filled earthwork has been completed; The investment of RMB 16.388 million yuan has been completed, accounting for 86% of the total investment for this bid section. Table 3.3.1-1 Summary of Implementation Progress of Civil Works of Xiangtan Subproject

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Contract Contracts for Contracted Progress of Civil Works Implementation Status Name of Bid Price (RMB Commencement Subproject Civil Works Time Limit Section 10,000 Time Progress Cumulative Completed Land Houses (Signed/Total) (Day) yuan) this Period Progress Investment Acquisition Demolition

275.30 150 2005.10.5 100% 100% Completed Completed

Bid section of 274 150 2005.10.5 100% 100% Completed Completed Xiangtan 452.10 150 2005.10.5 100% 100% Completed Completed Shaoyaogang Xiangtan Project 281.10 150 2005.10.5 100% 100% Completed Completed 6/6 City 164.20 150 2005.10.5 100% 100% Completed Completed Bid Section of Xiangxiang Under Under 1905.60 571 2008.2.14 85% 86% Chengnan construction construction Dike Project

3.3.2 Implementation of Land Acquisition, Houses Demolition and Relocation

1) Land Acquisition The planned permanent land acquisition involves Xiangtan City and 6 administrative villages (residential committee) of Xiangxiang County with 499.8mu land to be acquired, including 192mu collective-owned land and 307.8mu state-owned land. Completed land acquisition area in previous years: the land acquisition area completed before the year of 2005 is 55.44mu, accounting for 11% of the planned land acquisition area, including 52.67mu collective-owned land and 2.77mu state-owned land. The land acquisition area completed after the year of 2005 is 320.76mu, accounting for 64% of the planned land acquisition area, including 122.2mu collective-owned land and 198.56mu state-owned land. Cumulative completed land acquisition area: by the end of August 2009, the cumulative completed land acquisition area is 376.2mu, accounting 75% of the planned land acquisition area, including 174.87mu collective-owned land and 201.33mu state-owned land. The cumulative payment of RMB 6.4726 million yuan for land acquisition has been completed. The land acquisition implementation progress of Xiangtan subproject is indicated in details in table 3.3.2-1. 2) Houses Demolition and Resettlement The subproject involves 594 people in 167 households and residential houses of 17476m2. According to the requirement of general urban planning of Xiangtan City, it will not provide the reconstructed area for the demolished houses. Therefore it is proposed to adopt the relocation mode of cash compensation for the relocation of the residents affected by the demolition. The actual demolition began from 2005 and till the end of August 2009 the demolition of houses of 12932.41 m2 had been completed, accounting for 74% of the planned houses to be demolished; the relocation of cumulative 131 households of 472 people has been completed, accounting for 78% of the

Changsha Xinghuan Water & Electricity Engineering Technology Development Co., Ltd. 161 Due Diligence Review Report on the Hunan Flood Control Project for Hilly Areas Utilizing ADB Loans planned relocated households. According to the relocatees’ willingness, they will be relocated with the mode of cash compensation. The relocation and demolition progress in previous years is indicated in details in table 3.3.2-2. Currently, among the 131 relocated households who completed their houses demolition, 75 households have bought the new houses and moved in, 20 households have moved in the low-rented houses and other 36 households have lived in the houses of their children and relatives, and meanwhile have been undertaking to buy new houses. All relocated households will be given with one-year transitional subsidies. Real-estate market of Xiangtan city is brisk these year. People have a big range of choice in commercial building property. In case of that, some of 56 households that haven’t been relocated is now waiting for the right time of buying. The rest of them is either living with their children and relatives or buying new houses with compensate under their children or relatives’ name. Resettlement progress is indicated in details in table 3.3.2-3.

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Table 3.3.2-1 Summary of Xiangtan Subproject Land Acquisition Progress Completion Percentage of Land Planned Land Acquisition(mu) Completion of Land Acquisition(mu) Acquisition Time Collective- State-owned Collective- State-owned Collective- State-owned Total Total Total owned Land Land owned Land Land owned Land Land

Before 2008 55.44 52.67 2.77 11% 27% 1%

After 2008 320.76 122.2 198.56 64% 64% 65%

Total 499.8 192 307.8 376.2 174.87 201.33 75% 91% 65%

Table 3.3.2-2 Xiangtan Subproject Houses Demolition Progress Statistics Table

Item Unit Quantity Remarks

Demolition of Houses m2 17476 Planned Demolition Demolition of Households Household 167 Relocation Population Person 594 Demolition of Houses m2 11201.3 Actual Demolition Before Demolition of Households Household 96 June 2008 Relocation Population Person 327

Demolition of Houses m2 0 Completion Between July to Demolition of Households Household 0 December of 2008 Relocation Population Person 0

Demolition of Houses m2 1731.1 Completion Between Demolition of Households Household 35 January to August of 2009 Relocation Population Person 145 Demolition of Houses m2 12932.4 Cumulative Completion Demolition of Households Household 131 Relocation Population Person 472 Demolition of Houses 74% Cumulative Completion Demolition of Households 78% Percentage Relocation Population 79%

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Table 3.3.2-3 Xiangtan Subproject Resettlement Progress Statistics Table

Resettlement Method Township and Town Item Cash Compensation Remarks (Sub-district) Household Person

The latest RP 76 232 Hengjie Residential Completed Resettlement 63 207 Committee Completion Percentage 83% 89% The latest RP 37 157 Wanfu Residential Completed Resettlement 51 190 Committee Completion Percentage 138% 121% The latest RP 7 27 Zhangjiang Village Completed Resettlement 1 4

Completion Percentage 14% 15% The latest RP 16 64 Tazi Village Completed Resettlement 5 21 Completion Percentage 31% 33%

The latest RP 22 75 Dongshan Village Completed Resettlement 9 43 Completion Percentage 41% 57% The latest RP 9 39

Chengzhong Village Completed Resettlement 2 7 Completion Percentage 22% 18% The latest RP 167 594 Total Completed Resettlement 131 472

Completion Percentage 78% 79%

4. Consultation and Disclosures 4.1 Key Consultation Activities during the Process of Land Acquisition

Prior to the land acquisition and houses demolition, the Municipal Government, the Project Management Office and the Demolition Management Office of Xiangtan City carried out several times of communications and consultations with relocatees representatives on resettlement policies and compensation standards. The consultation activities are indicated in details in Table 4.1-1.

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Table 4.1-1 Summary of Consultation Activities No. of Time Site Participant Content Particip Relocatees representatives, the Township Conference room of the Government of Xiacheng, Dongping Street, Subproject briefing, and discussion 2005.7.14 Municipal Water the Municipal Real Estate Administrative 8 on the impact scope and preliminary Resources Bureau Bureau, Urban and Town House Demolition resettlement scheme Office 1. Hold the consultative conference Relocatees representatives, the Municipal Conference room of to concentratedly introduce the Water Resources Bureau, the Municipal Real 2005.7.26 Hedong dike 20 situation and continue to accept Estate Administrative Bureau, Urban and administrative agency suggestions and advises. 2.Hold Town House Demolition Office the mobilization meeting to publicize Relocatees representatives, the Municipal Collect the suggestions of subproject Conference room of Water Resources Bureau, the Municipal Real on compensation standards, 2005.8.3 Hedong dike 30 Estate Administrative Bureau, the Urban and resettlement plan and land administrative agency Town House Demolition Office acquisition.

Mayor Mr. Peng Xianfa (current municipal party secretary of Xiangtan City), deputy secretary of labor administration (current municipal party inspector of Xiangtan City), the Consult the issues of compensation Municipal Water Resources Bureau, the standards, enterprise mechanism Conference room of the Municipal Finance Bureau, the Municipal Real reform, resettlement plan and land Municipal Water 2005.8.10 Estate Administrative Bureau, the Urban 35 acquisition of demolition of Xiangtan Resources Bureau for Administrative Bureau, the Municipal Land Compressor Manufacture Plant and flood prevention and Resources Bureau, the Municipal Yuetang Houses Administrative Planning Bureau, the Municipal Electricity Agent. Bureau, Yuetang Houses Administrative Agent and Xiangtan Compressor Manufacture Plant

Consult the issues of compensation Dongping Street, Dongping Print Plant, Conference room of standards, resettlement plan and Municipal Water Resource Administrative 2005.8.29 Administrative Agency 10 land acquisition of the units to be Bureau and Urban and Town House of Hedong dike demolished like Dongping Print Demolition Office Plant.

4.2 Key Information Disclosures of Land Acquisition Process

The relevant resettlement information was publicized to the affected area due to this subproject construction several times in forms of symposiums or bulletins, so as to make relocatees get to know of land acquisition status, compensation standard for land acquisition, use of compensation funds as well as information on relocatees in affected areas. 5. Adopted Compensation Policies 5.1 Compensation Policies for the Acquired Land

The executed land acquisition policy before 2005 is based on the Compensation and Resettlement

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Methods for Land Acquisition and Relocation of Xiangtan City (TZF[2001] No. 18), whileas the RP draft is compiled in accordance with the Notice About Releasing Hunan Land Acquisition Annual Output Standard by General Office of Hunan People’s Government (XZBF [2005] No. 47). The land acquisition has been partially completed prior to the formal implementation of XZBF [2005] No. 47 document, therefore the executable prices of some parts of land categories in the actual land acquisition before 2005 are lower than the compensation standard stated in the RP draft, including dry land, flood plain and land used by enterprises and institutions. The detailed information is shown in table 5.1-1. The implementation policies of land acquisition after 2005 are in compliance with XZBF[2005]No. 47 document in the RP draft. However, it is quite difficult to come to an agreement with the relocatees and the units affected by land acquisition according to the planned standard during the actual implementation of land acquisition. Therefore the actual payment price by the Employer is higher than the planned standard. The detailed information is shown in table 5.1-2: Table 5.1-1 Comparison Table of Xiangtan Subproject Compensation Standard for Permanent Land Acquisition Before 2005

Land Property Planned Compensation Actual Compensation Category of Land Unit Right Standard Standard

Paddy Field yuan/mu 27880 61210

Dry Land yuan/mu 19680 15342 Collective-owned Water Pond yuan/mu 27200 48012 Land Housing Plot yuan/mu 24200 62340

Flood Plain yuan/mu 13440 9640 Land for Enterprises and yuan/mu 55760 17340 Institutions State-owned Land Residential land yuan/mu Listed in urban houses Listed in urban houses Land acquired with no Other land yuan/mu Land acquired with no payment payment

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Table 5.1-2 Comparison Table of Xiangtan Subproject Compensation Standard for Permanent Land Acquisition in After 2005 Land Property Planned Compensated Actual Compensated Category of Land Unit Right Standard Standard Paddy Field yuan/mu 27880 61210

Dry Land yuan/mu 19680 19680 Collective- Water Pond yuan/mu 27200 48012 owned Land Housing Plot yuan/mu 24200 62340

Flood Plain yuan/mu 13440 13440 Land for Enterprises and yuan/mu 55760 55760 Institutions State-owned Residential Land yuan/mu Listed in urban houses Listed in urban houses Land Land acquired with no Land acquired with no Other Land yuan/mu payment payment

5.2 Compensation Policies for the Attached Properties

The land acquisition due to this subproject construction also affects some communication facilities, power transmission facilities and telecom facilities. It’s planned to restore their functions by reconstruction. Currently, the executable standards for the attached properties compensation in the implementation process are consistent with the compensation standards specified in the RP draft. 5.3 Compensation Policies for the Demolished Houses

The compensation polices for houses demolition are in compliance with the Hunan Executable Methods of Urban Housing Units Regulations (People’s Government of Hunan Province No. 157 Decree promulgated on July 12, 2002) , which is consistent with compensation policies for houses demolition specified in the RP. However, the actual compensation prices for houses demolition in the implementation process by the Employer are based on the evaluation prices provided by the authorized Real Estate Evaluation Agency, which are the market prices taking account of various factors of residential houses, accordingly they are higher than the compensation standards specified in the RP. The detailed information is shown in table 5.3-1.

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Table 5.3-1 Comparison Table of Xiangtan Subproject Compensation Standards for Demolished Residential Houses Category of Planned Compensation Actual Compensation Structure Unit Range of Changing Housing Standard Standard Brick-concrete yuan/m2 512 459~563 680 Structure Brick-wood yuan/m2 428 385~471 650 Structure Urban Houses Earth-wood yuan/m2 256 240~280 418 structure

Wing Room yuan/m2 80 352 Brick-concrete yuan/m2 305 274~336 305 Structure Brick-wood Rural Houses yuan/m2 238 214~262 238 Structure Wing Room yuan/m2 65 65

5.4 Allowance or Assistance for Moving and Relocation

(1) Subsidies for Moving and Transportation The moving and transportation fees (including materials handling fees at RMB 100 yuan per capita, subsistence subsidies at RMB 100 yuan per capita, temporary house subsidies at RMB 200 yuan per capita and secondary handling fees at RMB 200 yuan per capita) planned in the RP draft are compensation at RMB 600 yuan per capita. Whileas, the actual executable standard is RMB 2,500 yuan per household for resettlement subsidies of relocatee in transition period and RMB 1,000 yuan per household for moving and transportation fees, which are RMB 3,500 yuan per household in total, higher than the planned standard. (2) Assistance Measures 1) Prior to moving and resettlement, it is required to explain requirements to the relocatees and manage to meet the requirements as possible as we can; 2) During the moving and transportation, it is required to help relocatees to deal with moving matters such as contacting the vehicles for moving so as to assist their moving; 3) After the moving and relocation, it is required to further know about the living comfort of the relocatees and whether they have some problems needed to timely solve. 4) The employer specially appropriate 223.8 thousands Yuan to help vulnerable group and low-income people. 11 households have been helped. It works as giving them a lump-sum payment that include 17800 Yuan of construction subsidy each household and 1000 Yuan of

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living subsidy each person. 6. Resettlement Budget Allocation 6.1 Change of Total Resettlement Cost Estimate

The total planned investment budget for this subproject hits RMB 28.7845 million yuan while the total actual investment is estimated to be RMB 33.11 million yuan according to the factor of the higher compensation prices of current land acquisition and demolition than the planned standard.

6.2 Sources of Resettlement Funding

The resettlement funds of this subproject shall be financed by the Employer on its own.

The major sources are loans from commercial banks and finance allocation, including RMB

10 million yuan loans from commercial banks and RMB 22.23 million yuan from finance allocation which are fully funded. The compensation fees for completed land acquisition and relocated people are all fully paid according to the agreement, without delinquencies.

6.3 Implementation Status

Xiangtan Subproject resettlement funds and implementation status in respective year is indicated in details in table 6.3-1: Table 6.3-1 Xiangtan Subproject Resettlement Funds and Implementation Status Completed Original Revised Completed Cumulative Completed Investment Planned Total Investment Completed Cumulative Available Investment Before Between Resettlement Resettlement Between July to Investment Completed Subproject Fund(RMB June of January to Investment(R Investment(R December of (RMB Investment 10,000 yuan) 2008(RMB 10,000 August of MB 10,000 MB 10,000 2008(RMB 10,000 Percentage yuan) 2009(RMB yuan) yuan) 10,000 yuan) yuan) 10,000 yuan)

Xiangtan 2878.45 3311 3223 2469 0 123 2592 78%

The original planned investment budget of Xiangtan subproject is RMB 28.7845 million yuan, the revised investment budget is RMB 33.11 million yuan and the cumulative completed investment is RMB 25.92 million yuan, accounting for 78% of the revised budget. The fees and expenses on land acquisition and

Changsha Xinghuan Water & Electricity Engineering Technology Development Co., Ltd. 169 Due Diligence Review Report on the Hunan Flood Control Project for Hilly Areas Utilizing ADB Loans houses demolition have been paid up, without delinquencies or underpayment. The payment of resettlement funds in Xiangtan City is indicated in details in Table 6.3-2:

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Table 6.3-2 Xiangtan Subproject Resettlement Funds Payment Breakdown

Original Planned Revised Total Cumulative Resettlement Resettlement Cumulative Paid Funds Completed Serial No. Item Investment (RMB Investment (RMB (RMB 10,000 yuan) Investment 10,000 yuan) 10,000 yuan) Percentage (%)

I Compensation fee for relocatees* 2160.06 2500.40 1895.07 76%

1 Compensation fee for land acquisition 696.50 864.91 647.26 75%

Compensation fee for houses and 2 1342.44 1446.99 1071.89 74% auxiliary facilities

3 Compensation fee for infrastructure 25.05 37.39 37.39 100%

4 Moving and transportation fee 35.64 58.45 45.87 78%

Compensation fee for enterprises and 5 40.04 70.28 70.28 100% institutions

6 Subsidies for vulnerable groups 20.39 22.38 22.38 100%

II Compensation fee for special facilities 88.85 93.20 93.20 100%

III Other fees 218.44 245.92 197.50 80%

IV Basic contingency fee 246.74 283.95 218.58 77%

V Relevant taxation 164.36 187.37 187.37 100%

VI Total investment 2878.45 3311 2592 78%

* Fees for temporary land use are excluded, as they are paid by contractors (see Section 7.2.1(i)).

7. Compensation Delivery and Rehabilitation Measures 7.1 Compensation Delivery for Attachments

(1) Planning and Payment of Houses and Auxiliary Facilities The compensation for houses and auxiliary facilities in this subproject mainly involves compensation fees for residential houses, non-residential houses as well as auxiliary facilities; according to the subproject resettlement indices in kind and compensation and subsidy standards, the original compensation budget for houses and auxiliary buildings is calculated to total RMB 13.4244 million yuan. An investment of RMB 14.4699 million yuan is in actual need for the houses and auxiliary facilities of this subproject and an amount of RMB 10.7189 million yuan has been paid, accounting for 74%, which has been paid up in pursuance of the agreement so far, without delinquencies. (2) Infrastructure Planning and Payment The original planned investment in infrastructure is RMB 0.2505 million yuan; an investment

Changsha Xinghuan Water & Electricity Engineering Technology Development Co., Ltd. 171 Due Diligence Review Report on the Hunan Flood Control Project for Hilly Areas Utilizing ADB Loans of RMB 0.3739 million yuan is in actual need; an amount of RMB 0.3739 million yuan has been paid, accounting for 100%. (3) Planning and Payment of Enterprises and Institutions The original planned resettlement and construction investment for enterprises and institutions is RMB 0.4004 million yuan; an amount of RMB 0.7028 million yuan is in actual need; an amount of RMB 0.7028 million yuan has been paid, accounting for 100%. (4) Planning and Payment of Special Subprojects The original planned investment in special subprojects is RMB 0.8885 million yuan; an investment of RMB 0.932 million yuan is in actual need; an amount of RMB 0.932 million yuan has been paid, accounting for 100%. 7.2 Compensation Delivery and Rehabilitation Measures for Acquired Land Areas

7.2.1 Fund Payment of Land Acquisition

(1) Compensation of Land Temporary Land Use The subproject temporary land acquisition is 390.9 mu, including 42.7 mu paddy field, 41.1 mu dryland, 134.4 mu timber forest, 146.8 mu shrub land and 25.9 mu waste land. According to the compensation standards of various temporary land acquisition, the actual compensation for this subproject land use is RMB 1.0796 million yuan (including fees for reclamation of farming land). (2) Payment of Compensation Delivery of Land Acquisition The original planned compensation for land acquisition is RMB 6.965 million yuan; an amount of RMB 8.6491 million yuan is in actual need; an amount of RMB 6.4726 million yuan has been paid, accounting for 75% of the land acquisition fees in actual need. The amount has been paid up according to the agreement, without delinquencies. 7.2.2 Economic Rehabilitation and Employment

(1) Economic Rehabilitation and Employment Planning Economic rehabilitation and employment mainly involve the following methods: 1) Adjustment of farming land within the group: the whole subproject planned to adjust 46.3 mu farming land and rehabilitate 88 persons. 2) Adjustment of development of farming land: the whole subproject planned to develop 5.46 mu farming land and rehabilitate 26 persons. 3) Development of greenhouse vegetable: the whole subproject planned to develop 5.5 mu anti-season nuisance-free greenhouse vegetable base and rehabilitate 22 agricultural persons. 4) Subproject construction and employment: Priority in employment in this subproject construction

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was to be given to relocatees. The subproject construction offers a lot of work opportunities for relocatees, including of land leveling and afforestation subproject. (2) Actual Economic Rehabilitation and Employment 1) Adjustment of farming land within the group: the whole subproject has adjusted 26.17 mu farming land and rehabilitated 66 persons. 2) Adjustment of land development: the whole subproject has developed 3.44 mu farming land and rehabilitated 20 persons. 3) Development of greenhouse vegetable: the whole subproject has developed 3.47 mu anti-season nuisance-free greenhouse vegetable base and rehabilitated 17 persons. 4) Subproject construction and employment: priority in employment in this subproject construction shall be given to relocatees. During the subproject construction process these years, 58 relocatees have been hired in land levelling, project construction and landscape engineering. Until August 2009, the economic rehabilitation has been made to 103 persons, accounting for 75% of the total 136 persons planned to be economically rehabilitated. 7.3 Compensation Delivery and Rehabilitation Measures of Relocated Households

According to the RP, the compensation for relocated households total RMB 13.7808 million yuan, including compensation fees for houses and auxiliary facilities, and moving and transportation fees. So far compensation fees in the amount of RMB 11.1776 million yuan have been fully paid, without delinquencies. According to the actual conditions of areas affected by this subproject and based on the relocatees’ willingness, the 167 relocated households in the subproject planning will all choose the relocation mode of cash compensation. In the course of implementation, the relocatees all chose the relocation mode of cash compensation. The local government will provide house sources, and the relocatees may choose to buy new houses of their own will. Of the 131 relocated households who have already had their houses demolished, 75 households have bought and moved into new houses, 20 have moved into low-rented houses in the transition period, and the rest live with their children or relatives in the transition period. 8. Institutional Structure for Resettlement Implementation 8.1 Resettlement and Construction Plan for Enterprises and Institutions

According to the RP, there are 7 enterprises and institutions within the subproject scope affected by the land acquisition and houses demolition, including 6 enterprises and 1 institution. All the units have only their staff member living houses or auxiliary workplace affected, so their normal production or function is not affected. Based on the opinion solicitation of the affected units and local government, the planning will adopt the relocation mode of cash compensation for all the affected units. The 7 newly-mentioned affected

Changsha Xinghuan Water & Electricity Engineering Technology Development Co., Ltd. 173 Due Diligence Review Report on the Hunan Flood Control Project for Hilly Areas Utilizing ADB Loans enterprises and institutions in the third and fourth period surveillance and survey reports are actually not affected in terms of public houses; only staff member living houses of these units are affected. After living house system reform, the property right of the staff member living houses actually belongs to the staff members. During the house demolition, the compensation fees for the houses are paid directly to the staff members. The part of staff member living houses planning is included in the house demolition relocatee indices, so the affected enterprises and institutions remain the previous 7 units in the RP draft. 8.2 Completed Resettlement and Construction Programs of Enterprises and Institutions

So far the demolition and resettlement of the 7 enterprises and institutions have been completed. As all the 7 enterprises and institutions are only partly affected and incur no impact on their normal production or function, the overall relocation and reconstruction is unnecessary. Therefore the relocation mode of cash compensation was adopted. Resettlement implementation status of enterprises and institutions of Xiangtan Subproject is shown in Table 8.2-1.

Implementation Status Table of Relocated Enterprises and institutions and Auxiliary facilities of Xiangtan Urban Flood Control Project Table 8.2-1

Principal room (m2) Auxiliary structures Unit name Total (m2) Reinforced concrete Brick-concrete Water Chimney structure structure tower(piece) (piece)

Total 16015 12989 3026 1 2

Cast Tube Manufacturing 9384 7470 1914 1 1 Subsidiary

Dongping Printing Factory 429 429

Xiangtan Waterway Station 447 447

Dongping Paper Bag Factory 396 396

Hedong Flood Control 1022 785 237 Warehouse

Xianghu Sandstone Yard 970 724 246

Ship Repair Shop of Municipal Water 3367 2738 629 1 Transportation Company 9. Complaints and Grievance Mechanism Up to now, no grievance has been received.

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10. Assessment and Conclusion 10.1 Satisfaction of Affected People

The land acquisition, houses demolition and relocation have been conducted in strict accordance with required procedures. Before the formal launch of land acquisition and houses demolition, application procedures on land acquisition have been completed, bulletins of land acquisition and houses demolition have been released, and other measures such as media propaganda and mass participation are appropriately taken. Prior to the land acquisition and houses demolition, indices in kind and compensation standard have been discussed by the implementation agencies and relocatees representatives and then declared. The relative compensation funds have been available and paid up, without delinquencies. The living conditions and living quality and other aspects have been improved as compared with those prior to the relocation. The affected households with their houses demolished expressed their satisfaction. 10.2 Conclusion of Due Diligence Review

Xiangtan Subproject Management Office, the Employer and governments at all levels paid highly attention to the related demolition and relocation, meanwhile they timely established and consummated the resettlement implementation agencies and arranged appropriate work staff for them. Since the launch of this subproject, the Employer together with resettlement implementation agencies at all levels carried out effective work on propaganda, mobilization, recheck of indices, land acquisition, houses demolition, as well as fund raising and payment. As per the RP draft, the land acquisition and relocation of Xiangtan Subproject plans to start from September 2005 and end till April 2009. However, the actual land acquisition and relocation began in 2005, and until now 376.2 mu permanent land acquisition has been completed, accounting for 75%. 472 persons of 131 households have been relocated, accounting for 78%. The relocatees who have been relocated all choose the relocation mode of cash compensation, which has been paid up, without delinquencies. So far 75 have bought and moved into new homes and 56 have being living in low-rented houses or with their children or relatives in the transition period. The executed land acquisition policy before 2005 is based on the Compensation and Resettlement Methods for Land Acquisition and Relocation of Xiangtan City (TZF[2001] No. 18), whileas the RP draft is compiled in accordance with the Notice About Releasing Hunan Land Acquisition Annual Output Standard by General Office of Hunan People’s Government (XZBF [2005] No. 47). The land acquisition has been partially completed prior to the formal implementation of XZBF [2005] No. 47 document, therefore the executable prices of a number of land categories in the actual land acquisition are lower than the compensation standard stated in the RP draft, including dry land, flood plain and land used

Changsha Xinghuan Water & Electricity Engineering Technology Development Co., Ltd. 175 Due Diligence Review Report on the Hunan Flood Control Project for Hilly Areas Utilizing ADB Loans by enterprises and institutions. The executed land acquisition policy after 2005 is in conformity with “XZBF [2005] No. 47” document specified in RP draft. But during the actual implementation process, the actual payment delivered by the employer is equal to or higher than the planned standards. The affected 7 enterprises and institutions have completed their compensation and house demolition. The cumulative investment of RMB 25.92 million yuan has been completed, accounting for 78%. As the actually implemented compensation price are mostly higher than the compensation standards in the RP draft, the revised resettlement budget totals RMB 33.11 million yuan, exceeding the original planned investment by 15%. The affected households with their houses demolished have expressed their satisfaction. The subproject unit hopes that the revised RP can obtain early approval by ADB. Annex 1: Photos

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Dyke Section of Civil Works Completed and Under Construction

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Annex 2: Planning Permit of Construction Land Acquisition

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Annex 3: House Demolition Permit

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