The Development Project of Highway in the Middle of Yunnan Province

Social Monitoring Report

Semestral Report February 2011

PRC: Central Yunnan Roads Development Project

Prepared by WINLOT Consulting Ltd for Yunnan Wukun Expressway Company and the Asian Development Bank. This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

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

The Development Project of Highway in the Middle of Yunnan Province

External Monitoring Report on Resettlement

Issue I

(Exposure draft)

Kunming, China February, 2011

Contents

1 SUMMARY ...... 5

2 DESCRIPTION OF EXTERNAL MONITORING ...... 5

3 IMPLEMENTATION RANGE OF THE RESETTLEMENT PLAN ...... 7

4 LEGAL FRAMEWORK...... 7

5 COMPENSATION STANDARD AND PAYMENT OF COMPENSATION ..... 11

6 IMPLEMENTATION OF RESETTLEMENT AND RECOVERY MEASURES 13

7 PUBLIC CONSULTATION AND COMPLAINT PROCEDURE ...... 15

8 INSTITUTION ARRANGEMENT AND ACHIEVEMENTS ...... 16

9 INVESTIGATION OF THE IMPACT OF LAND REQUISITION & RELOCATION

ON PRODUCTION AND LIVING OF AFFECTED FAMILIES ...... 17

10 CONCLUSIONS AND SUGGESTIONS ...... 21

I. 1 SUMMARY 1.1 Background 1. As the main highway in the Development Project of Highway in the Middle of Yunnan Province loaned by the Asian Development Bank, the Wuding-Kunming Expressway (hereinafter referred to as the Expressway) is not only one section of Lanzhou-Mohan Highway (a planned western thoroughfare) in Yunnan Province but also an important part of Beijing-Kunming Expressway planned in the national expressway network. The Expressway, which is 63.58km long (including 14.62km in Chuxiong Yi Nationality Autonomous Prefecture and 48.96km in Kunming City), starts from Wuding County of Chuxiong Prefecture, connects with the terminal of Yongren – Yuanmou – Wuding Expressway, passes through Fumin County and Wuhua District of Kunming City, and then links with the northwestern section of Kunming Ring Road (an trunk line of national highway to be built) or extends into the downtown of Kunming City. The county-level administrative regions, through which the Expressway passes, involve Wuding County of Chuxiong Prefecture as well as Fumin County and Wuhua District of Kunming City. The access road for the construction is 20.606km, which is located in Chuxiong Prefecture. 2. The Expressway is of two ways and four lays, of which the section from Wuding to Fumin is about 37.5km long, with the designed speed of 80km/h and subgrade width of 24.5m, while the section from Fumin to Kunming is about 26.1km, with the designed speed of 100km/h and subgrade width of 26m. Along the Expressway, there are totally 4 grand bridges, 69 large and medium bridges, 4 small bridges (as per twin decks), 95 culverts (including pipe culvert), and 4 interchanges and 4 channels, all of which occupy 41.95% of the whole line. Due to the complex geology along the line, it is difficult for the construction. It is estimated that the total investment in this project is to be about RMB 5.1 billion Yuan. 1.2 Schedule of land requisition & relocation 3. Up to now, land requisition & relocation within the red line of the Expressway have been completed basically; detailed data of each household are being summarized, typed into the computer and verified, for which the statistics are to be completed by the end of April 2011. According to the land detailed measurement survey, for the Project, the total land to be requisitioned is 5,400.73mu (1mu ≈ 667m2) and the area of houses to be demolished is 253,170m2, as listed in the following table: Table 1.1 Schedule of land requisition & relocation Wuding Fumin Wuhua Type Unit Total County County District Land mu 1,121.5 2,540.56 1,738.67 5,400.73 requisition Relocation M2 17,973 120,000 115,197 253,170 Note: the land requisition and relocation area in Wuding County include the access road. II. 2 DESCRIPTION OF EXTERNAL MONITORING 4. According to the resettlement plan, external monitoring covers all land requisition and relocation in this project. Since undertaking the task, the external 5

monitoring institution has cooperated with local professional institutions, and has made field investigation for many times and held meetings with the governments at all levels and the project implementation organization, so as to understand the resettlement progress, and compensation and resettlement of the affected households. 5. For external monitoring, various methods including consulting, field visit and group discussion are adopted. The following activities are mainly monitored during implementation of the resettlement plan: a) Land requisition b) House demolishing c) Payment of compensation d) Construction or purchase of new houses e) Recovery or reconstruction of infrastructure f) Skill training g) Support for vulnerable group h) Schedule i) Efficiency of the resettlement institution j) Living standard of the affected families 6. With the aim of understanding in detail the impacts of land requisition & relocation on production and life of the affected families, the external monitoring institution, in January 2011, made sampling investigation on over 200 households in 10 administrative villages of 3 districts and counties along the line. The investigation results are detailed in Chapter 9 of this report. 7. Moreover, the external monitoring institution also made sampling investigation on social and economic conditions and social level of the affected families, including collection of social level samples before land requisition and relocation of the affected persons. The samples are taken randomly. Sample size meets the requirements of the resettlement plan, i.e. 10-20% (including 10% vulnerable group) and 25% affected villages by land requisition. Upon resettlement, living standard of the sampled household is to be investigated to monitor change of their living standard. In addition, periodic investigation, random interview and field visit will be adopted in order to understand in detail the overall social and economic conditions of the affected families. 8. After the above investigation, a database about the affected households sampled is to be established, and independent assessment tables are to be formulated, including both collected information and classified statistical data of all sampled households. Main information will include the number of family members, the area of land and area and quality of houses owned by them before and after resettlement, level and source of income, employment status, and social development indices before and after resettlement. The investigation results in different years will be used for tracking the changes of income and expenses and living standard of the affected persons, and an independent sampling investigation report on the affected families will be submitted to the owner and the ADB. 6

III. 3 IMPLEMENTATION RANGE OF THE RESETTLEMENT PLAN 9. Compared with that in the resettlement plan, the area of land requisitioned reduces by 9.9% from 5,995mu to 5,400.73mu, with little changes. The main reason for great changes in districts and counties is that land boundary is not explicit when the resettlement plan is formulated. Detailed comparison of the planned land quantity with the actual land quantity is shown in the following table: Table 3.1 Detailed comparison of the planned land quantity with the actual land quantity Uni Wuding Fumin Wuhua Type Total t County County District Planned land mu 1,448 2,979 1,568 5,995 requisition 5,400.7 Actual land requisition mu 1,121.5 2,540.56 1,738.67 3 Change % -22.5% -14.7% 10.9% -9.9% 10. Compared with that in the resettlement plan, the area of houses demolished increases by 38.0% from 183,445㎡ to 253,170㎡, with great changes. The main reason is variation of the design plan, especially that Zhebei Interchange is constructed in Luomian Township and this results in an overall relocation of Caoxishao, Zhebei Village and a considerable increase of the demolished area in Fumin County. Detailed comparison of the planned demolition quantity with the actual demolition quantity is shown in the following table: Table 3.2 Detailed comparison of the planned demolition quantity with the actual demolition quantity Type Unit Wuding County Fumin County Wuhua District Total Planned land M2 727 1735 180983 183445 requisition Actual land requisition M2 17,973 120,000 115,197 253,170 Change % 2372.2% 6816.4% -36.3% 38.0% 11. In the light of the resettlement plan (May 2007), 1,524 and 1,319 persons (excluding the repeated) are impacted by loss of cultivated land and demolition respectively, thus 2,843 persons in total are impacted by land requisition and relocation. As the actual data about households affected are being collected, the comparison will be made after relative data is available. IV. 4 LEGAL FRAMEWORK 12. According to the resettlement plan, the resettlement is implemented in this project mainly in accordance with the following laws and regulations:  Land Administration Law of the People's Republic of China (No.8 Order of the President of the People's Republic of China, promulgated on August 29, 1998, implemented from January 1, 1999 and revised in 2004);  Regulations for the Implementation of the Land Administration Law of the People's Republic of China (implemented from January 1999); 7

 Decisions on Strengthening Reform to Strict Land Management Promulgated by the State Council (GF [2004] No. 28, October 21, 2004);  Circular of the State Council Concerning Reinforcement of Land Control (GF [2006] No.31, August 31, 2006);  Forest Law of the People's Republic of China (revised in 1998);  Regulations on Announcement of Land Requisition (No. 10 Order of the Ministry of Land and Resources, implemented from January 1, 2002);  Regulation on the Dismantlement of Urban Houses (No. 305 Order of the State Council, implemented from November 1, 2001);  Regulations for the implementation of the Land Administration of Yunnan Province (implemented from April 2000);  Regulations on the Dismantlement of Urban Houses of Yunnan Province (No. 109 Order of the People's Government of Yunnan Province, implemented from June 1, 2002);  Regulations for Woodland of Yunnan Province ([1997] No. 43 Document);  ADB Involuntary Resettlement Policy (issued in November 1995);  Handbook on Resettlement: A Guide to Good Practice (issued in 1998); Handbook on New Resettlement OM/F2-Involuntary Resettlement (issued in 2003);  Gender List: Resettlement (issued by ADB in Feb. 2003) In the process of the project implementation, two new regulations are promulgated in Yunnan Province:  Circular of the People's Government of Yunnan Province Concerning the Printing and Distribution of the Trial Measures for Basic Old-age Security of Farmers Involved in Land Requisition in Yunnan Province (YZF [2008] No. 26) (November 18, 2008);  Unified Annual Production Standards for Land Requisition and Compensation Standards for Integrated Land Value of the Districts in Yunnan Province (for Trial Implementation) (July 2009) 13. The main clauses in The Trial Measures for Basic Old-age Security of Farmers Involved in Land Requisition in Yunnan Province, relating to this project, are described in the following: 14. Article 2 The Measures shall be applicable to the registered personnel aged 16 or above, with the right of contracting collectively-owned land in rural areas within the administrative region of our province, whose lands are requisitioned wholly or partly by the governments under the law after the Measures are enforced and whose cultivated land area per capita after land requisition is less than 0.3mu. The peasants, whose lands are requisitioned partly and whose cultivated land area per capita after land requisition is higher than 0.3mu but insufficient to maintain basic production and

living, shall also be covered by the basic old-age security according to local actual conditions. 15. Article 4 The basic old-age security level shall adapt to the local economic and social development level and the bearing capability of all parties, and shall not be less than the lowest living security standard of local urban residents. 16. Article 6 The basic old-age security funds shall be paid off in proportion by peasants, rural collective and local government. The total funds raised shall be based on the lowest living security standard of urban residents in the same year, and the rate of increase shall be taken into account and determined depending on the payment period for 15 years. The individual payment and collective subsidy shall be less than 60% of the total funds raised, while the government subsidy more than 40%. 17. No taxes or expenses shall be levied on the basic old-age security funds. 18. Article 7 The government subsidy shall be transferred by the department of finance from the special funds for land requisition. The fund of more than RMB 20,000 Yuan per mu shall be collected by the governments based on the land level determined by the state, and specially used for the basic old-age security. 19. Article 8 On the premise that the basic old-age security system is established, the individual payment and collective subsidy shall be disbursed from less than 50% relocation subsidy and from more than 70% land compensation expenses for peasants involved in land requisition. During land requisition, the people’s government at all levels shall calculate under the law the basic old-age security funds as one part of the farmland acquisition costs, and then the institution of land requisition shall deliver the calculation data about the calculated land compensation expenses, resettlement subsidies and basic old-age security funds to the departments of finance, labor security as well as land and resources, of which the basic old-age security funds shall be turned over by the department of finance. If the two funds are inadequate to pay off, the insufficient part shall be made up by the department of finance from the compensated revenue for use of state-owned lands. 20. Article 10 The basic old-age security funds shall be managed by both social pooling account and individual account. All government subsidies shall be transferred into the social pooling account, while all individual payments and collective subsidies into the individual account. 21. Article 14 The peasants involved in land requisition, who have joined the basic old-age security and paid in full all expenses, can receive the monthly basic old- age benefits in the month following the month in which the peasants are aged 60. 22. Article 15 The basic old-age benefits shall be made up of two parts, namely retirement pension in individual account and basic retirement pension, which are paid out of the individual account and the social pooling account respectively. If individual account is inadequate, the pension can be disbursed from the social pooling account. 23. Monthly basic old-age benefits = monthly retirement pension in individual account (total amounts accumulated in individual account÷180) + monthly basic retirement pension (not less than 40% of the lowest monthly living security standard of urban residents during the first drawing of the pension) 24. During the first drawing, if the monthly basic old-age benefits fail to conform

to the lowest living security standard of urban residents, the inadequate part shall be made up with funds in the social pooling account. 25. Article 32 Detailed rules for the implementation of the Measures shall be formulated under the Measures without any delay. Relative policies which have been issued before implementation of the Measures shall be improved gradually as per the Measures. 26. No land requisition shall be approved in case that the measures for the implementation of old-age security for peasants involved in land requisition are not issued, that the funds for old-age security for those peasants are not put into effect, or that relative procedures prior to approval of land requisition are not carried out under the regulations. 27. Article 35 The Measures shall be implemented from January 1, 2009. 28. The main clauses in The Unified Annual Production Standards for Land Requisition and Compensation Standards for Integrated Land Value of the Districts in Yunnan Province, relating to this project, are described in the following: 29. Article 2 In the light of The Circular Regarding the Implementation of the Unified Annual Production Standards for Land Requisition and Integrated Land Value of the Districts of the Ministry of Land and Resources, the “Measurement and Calculation for the Unified Annual Production Standards for Land Requisition and Integrated Land Value of the Districts” commenced from October 2005, were completed in January 2006 and reported to the Ministry of Land and Resources for nationwide balance in June 2006 after county/city/district-level demonstration, hearing, balance adjustment, interface with adjoining provinces and districts, and invitation of experts in relative departments for review. On June 11, 2008, the Ministry of Land and Resources gave an official and written reply and accepted The Unified Annual Production Standards for Land Requisition and Compensation Standards for Integrated Land Value of the Districts, and put forward suggestions for improvement. Our province made modifications in time based on the suggestions, and heard twice in September 2008 and February 2009 respectively the opinions and suggestions of the department of land and resources of the prefecture/city and the relative provincial-level departments and bureaus. The Unified Annual Production Standards for Land Requisition and Compensation Standards for Integrated Land Value of the Districts of our province was verified by the people’s government of the prefecture/city and finally determined. 30. Article 3 The Unified Annual Production Standards for Land Requisition and Compensation Standards for Integrated Land Value of the Districts of our province consists of two parts. The first part is the compensation standard for integrated land value of the districts proportioned within the urban planning region in which the people’s government of 16 prefectures/cities of our province is located; the second part is the unified annual production compensation standards for land requisition in 129 counties/districts of our province. The compensation standard for integrated land value of the districts proportioned shall be carried out within the construction land range (or within the required district) determined in the overall planning of land use of counties/cities/districts where the people’s government of 16 prefectures/cities of our province is located, while the unified annual production compensation standards for land requisition be implemented in the rest areas.

31. Article 4 The base date for this standard is January 1, 2009. 32. Article 5 The Unified Annual Production Standards for Land Requisition and Compensation Standards for Integrated Land Value of the Districts in Yunnan Province shall be implemented from July 1, 2009. 33. On the basis of above new regulations, both resettlement policies and compensation standards in this project varied, as shown in the next chapter. V. 5 COMPENSATION STANDARD AND PAYMENT OF COMPENSATION According to relative laws and regulations and on the basis of the results of social and economic investigation, the planned compensation standard for land requisition in this project is listed as follows: Table 5.1 Compensation standard for land requisition in the resettlement plan SN Land type Unit Compensation standard Remarks 1 Paddy field Yuan/mu 40,250 Average price 2 Dry land Yuan/mu 26,450 Average price 3 Vegetable field Yuan/mu 64,400 Average price 4 Orchard Yuan/mu 71,300 Average price 5 Wood land Yuan/mu 11,500 Average price 6 House site Yuan/mu 61,400 Average price 7 Waste land Yuan/mu 575 Average price 8 Shrub land Yuan/mu 6,900 Average price 9 Subsidy for woodland occupation Yuan/mu 2,000 Average price 10 Expenses for vegetation recovery Yuan/mu 4,000 Average price 11 Compensation for young crops Yuan/mu 800 Average price 34. When the resettlement plan is implemented, the compensation standard for land requisition is adjusted and detailed on the basis of the Unified Annual Production Standards for Land Requisition and Compensation Standards for Integrated Land Value of the Districts in Yunnan Province and in consideration of social and economic development along the line, so as to reflect actual conditions along the line. Table 5.2 Actual compensation standard for land requisition Compensation Land type Unit Remarks standard Wuding County Paddy field Yuan/mu 64,419 Average price Dry land Yuan/mu 56,985 Average price Vegetable field Yuan/mu 64,419 Average price Orchard Yuan/mu 56,985 Average price Wood land Yuan/mu 44,595 Average price Fumin County Paddy field Yuan/mu 130,000 Average price Dry land Yuan/mu 90,000 Average price Vegetable field Yuan/mu 90,000 Average price Orchard Yuan/mu 90,000 Average price Wood land Yuan/mu 70,000 Average price Wuhua District (Shalang Town) 11

Compensation Land type Unit Remarks standard Paddy field Yuan/mu 130,000 Average price Dry land Yuan/mu 90,000 Average price Vegetable field Yuan/mu 90,000 Average price Orchard Yuan/mu 90,000 Average price Wood land Yuan/mu 70,000 Average price Wuhua District (Puji Neighborhood Office) Paddy field Yuan/mu 250,000 Average price Dry land Yuan/mu 250,000 Average price Vegetable field Yuan/mu 250,000 Average price Orchard Yuan/mu 250,000 Average price Wood land Yuan/mu 250,000 Average price 35. Comparison between the above two table reveals that, except the compensation standard for orchards in Wuding County, the standard for all land types in this project is higher than the planned standard, especially the actual standard for land requisition in Wuhua District (Puji Neighborhood Office) is over three times higher than the planned one. As for the compensation standard for orchards in Wuding County, the planned price and the actual one are 71,300Yuan/mu and 56,985Yuan/mu respectively with small difference, and the social and economic level of Wuding County is the lowest among three districts and counties along the line, therefore such standard meets requirements of the plan. 36. According to relative regulations and on the basis of the results of social and economic investigation, the planned compensation standard for land requisition in this project is listed as follows: Table 5.3 Compensation standard for houses in the resettlement plan Compensation Type Unit Remarks standard Brick-concrete Yuan/m2 700 Average price house Brick-wood house Yuan/m2 400 Average price Earth-wood house Yuan/m2 300 Average price Makeshift house Yuan/m2 100 Average price 37. When the resettlement plan is implemented, the compensation standard for relocation is adjusted and detailed in consideration of social and economic development along the line, so as to reflect actual conditions along the line. Table 5.4 Actual compensation standard for houses Actual compensation Type Unit Remarks standard Wuding County Brick-concrete Yuan/m2 700 Average price house Brick-wood house Yuan/m2 400 Average price Earth-wood house Yuan/m2 300 Average price Makeshift house Yuan/m2 100 Average price Fumin County Brick-concrete Yuan/m2 700 Average price 12

house Brick-wood house Yuan/m2 400 Average price Earth-wood house Yuan/m2 300 Average price Makeshift house Yuan/m2 100 Average price Wuhua District Brick-concrete Yuan/m2 700 Average price house Brick-wood house Yuan/m2 400 Average price Earth-wood house Yuan/m2 300 Average price Makeshift house Yuan/m2 100 Average price 38. Comparison between the above two tables reveals that the compensation standard for various houses in this project is higher than the planned standard except that the compensation standard for makeshift houses in Fumin County and Wuhua District does not change. 39. According to the resettlement plan, the total expenses on resettlement in this project are estimated to be RMB 337,600,000 Yuan. As the actual data about households affected are being collected, comparison with the actual expenses will be made after relative data is available. 40. According to the affected number determined by the designer, implementing organization of land requisition and relocation, local governments at all levels and affected persons, the construction headquarter of the Expressway will appropriate all compensation expenses to the implementing organization of resettlement in Kunming City and Chuxiong Prefecture, and then such organization in districts and counties distribute the expenses to administrative villages and individuals. In Wuding County and Fumin County, the compensation expenses are appropriated directly to the affected administrative villages (payment for land requisition) and individuals (payment for relocation and compensation for other ground fixtures), no organizations of townships or towns got into the act; in Wuhua District, as the compensation standards for different streets are different and land requisition & relocation work are mainly carried out by neighborhood offices, the expenses are appropriated through neighborhood offices to the affected administrative villages (payment for land requisition) and individuals (payment for relocation and compensation for other ground fixtures).

VI. 6 IMPLEMENTATION OF RESETTLEMENT AND RECOVERY MEASURES 41. The main activities of land requisition & relocation in this project were carried out from October 2009 to the end of 2010, and it was about 2 years later than that described in the resettlement plan. The main reason is that Chinese government adopted new control policies for infrastructure construction after international financial crisis, and then, the Ministry of Land and Resources postponed the approval for land use and the Ministry of Transport had to suspend the order for commencement accordingly. 6.1 Recovery of living 42. Recovery of living aims to improve the living standard of affected persons

after resettlement or recover at least to the original standard. All compensations for requisition of household contracted lands are paid to families and can be used either for farm production, livestock breeding, other side occupations and non-agricultural activities or improvement of living standard. As all compensations are disposed personally, disposal of those compensations will be tracked in the future sampling investigation of family living standard. 43. Furthermore, guidance will be provided for use of those compensations , and various skill trainings will be provided. When organizing the trainings, the local governments have taken the affected families into account. According to the incomplete statistics, about 1/3 villagers have participated in the free skill trainings, covering farm production, livestock breeding and catering service etc., organized by employment sectors and other institutions and organizations. 6.2 Endowment insurance of farmers involved in land requisition 44. On March 22, 2008, the People's Government of Kunming City issued The Measures for Basic Endowment Insurance of Persons Involved in Land Requisition in Kunming City; on April 15, 2010, the People's Government of Wuding County promulgated The Measures for the Implementation of Basic Endowment Insurance of Farmers Involved in Land Requisition in Wuding County. According to these Measures, the peasants affected by this project conform basically to the standard of the peasants without land. All persons aged 18 or above can join the endowment insurance in household, and relative expenses are paid off by individuals and governments. 45. Payment and subsidy proportion of the persons involved in land requisition in Fumin County and Wuhua District of Kunming City are as follows: for loss of all lands, individual insurance and collective subsidy account for 80% of the payment standard while the government subsidies for 20%; for individual arable land of less than 0.3mu, individual insurance and collective subsidy account for 85% of the payment standard while the government subsidies for 15%; for individual arable land of more than 0.3mu, individual insurance and collective subsidy account for 90% of the payment standard while the government subsidies for 10%. In addition, payment and subsidy proportion of the persons involved in land requisition in Wuding County are as follows: for loss of all lands, individual insurance and collective subsidy account for 20% of the payment standard while the government subsidies for 80%; for individual arable land of less than 0.3mu, individual insurance and collective subsidy account for 60% of the payment standard while the government subsidies for 40%; for individual arable land of more than 0.3mu, individual insurance and collective subsidy account for 80% of the payment standard while the government subsidies for 20%. 46. Persons aged 60 or above in Wuding County and men aged 60 or above and women aged 55 in Fumin County and Wuhua District of Kunming City can get the basic endowment living expenses. All insured persons meeting the requirements can get such expenses monthly, about RMB 300 Yuan in average according to the current standard, until death. The basic old-age pensions of RMB 20,000~30,000 Yuan/mu for peasants involved in land requisition are collected in this project, and will be applied for endowment insurance of those peasants. 6.3 Demolishing and recovery of houses 47. Based on the different conditions along the line, the houses demolished in 14

Wuhua District will be compensated in monetary form, i.e. corresponding cost company, and assessment company and demolishing company will be determined by means of bidding invitation by Wuhua District. After the cost company and assessment company determine the number of affected persons and compensation standards in accordance with relative regulations for the Expressway, the compensation expenses will be paid directly to the property owner, so that the affected families can purchase commercial house at their own discretion. The investigation reveals that 95% households relocated have purchased commercial houses in Kunming City while about 5% young migrant workers have purchased commercial house in the cities where they work. 48. In Fumin County and Wuding County, house construction in either voluntary or centralized way can be adopted respectively according to the number of relocated households in each affected administrative village. As for the village in which houses are constructed in a centralized way, the implementing organization of resettlement is responsible for coordinating house sites and construction of infrastructure of “three connections (i.e. water, electric power supplies and roads) and one leveling (i.e. ground)”. The affected villages inhabited by ethnic minorities are given special attention. 49. For example, in Wuding County, 23 households in a Miao Nationality village affected by the Expressway are to be relocated. The implementing organization of resettlement is responsible for house sites and unified construction of infrastructure and houses. The actual average cost for houses of each household is RMB 200,000 Yuan, but only RMB 35,000 Yuan is collected from each household relocated. In addition, the household getting the lowest house compensation expense among the 23 ones is paid with RMB 40,000 Yuan. Consequently, all households relocated can share the new houses without any fund to be raised additionally.

VII. 7 PUBLIC CONSULTATION AND COMPLAINT PROCEDURE 50. Since implementation of the Project, the resettlement plan has been issued to districts and counties, and detailed resettlement manuals have been distributed to villages. Furthermore, the resettlement policies and compensation standards regarding land requisition and relocation in this project are announced by means of broadcast, television, newspaper and notice to all affected persons. The implementing organizations of resettlement at all levels are patient to explain and publicize all uncertainties of villagers. 51. All land departments of districts and counties where the investigated 15 administrative villages are located have received the resettlement plan, and these villages have also got the resettlement information manual. Moreover, the village committee of those villages has declared by broadcast or notice the information about land requisition & relocation, and the compensation standards regarding land requisition & relocation have been put up in those villages. Among the affected families investigated, 65% families saw the manual; 100% knew the above information by means of broadcast or notice; 93% sew the above compensation standards put up; 96% discussed with the village committee the matters about land requisition & relocation and compensation. The above data prove that public consultation in this project is well done.

52. When the affected units and families sign the compensation agreement for land requisition & relocation, the implementing organizations of resettlement at all levels make further consultation with the affected persons, and a complete complaint treatment mechanism from village committees, townships & towns, districts & counties to the headquarter has been established and it can treat in time with all reasonable requirements of the affected families. Among the investigated families in the 15 administrative villages, 85% families know, from the information manual and other publicity approaches, the channels of expressing dissatisfactions and complaints.

VIII. 8 INSTITUTION ARRANGEMENT AND ACHIEVEMENTS 53. With the aim of constructing highways in the mode similar to other expressway projects in China, the Department of Communications of Yunnan Province has established a construction headquarter of the Expressway to be responsible for construction and other relative works. This headquarter is under the directorship of the commander and governs ten departments, of which the coordination office of land requisition & relocation takes charge of all tasks about land requisition & relocation in this project. 54. In September 2009, the Department of Communications of Yunnan Province and the Yunnan Highway Development & Investment Co., Ltd signed with the People’s Government of Kunming City and Chuxiong Prefecture respectively The Responsibility Agreement for Land Requisition & Relocation and Construction Environment Protection during Construction of Wuding-Kunming Expressway, and the Agreement stipulates that both the People’s Government of Kunming City and Chuxiong Prefecture shall take full charge of land requisition & relocation and construction environment protection, so as to ensure that the Expressway can be completed in 2012. 55. With the aim of ensuring smooth land requisition & relocation in this project, the People’s Government at cities/prefectures level and counties/districts level has established respectively leading group for construction coordination for the Expressway to govern the construction coordination office responsible for handling the matters regarding land requisition & relocation as well as for coordinating and handling construction environment protection. The departments of finance, land, forestry, public security, water resources, environmental protection, construction, safety supervision, letters and calls, and electric power and communication shall provide support from their duties, so as to do well in land requisition & relocation and environment protection and ensure smooth construction. 56. The implementing organizations of resettlement at all levels are provided with experienced workers and necessary office devices. As a result of tight schedule and heavy tasks, all workers always give up rest but work overtime to handle in time all problems during resettlement. Complicated problems are reported in time to the superior authorities and solved after negotiation. On the basis of various trainings and communications, workers in institutions at all levels understand gradually the policies and requirements on resettlement for the projects financed by ADB. According to the current situation, the operating efficiency of the implementing organizations is high.

IX. 9 INVESTIGATION OF THE IMPACT OF LAND REQUISITION & RELOCATION ON PRODUCTION AND LIVING OF AFFECTED FAMILIES 57. In January 2011, the M&E Team conducted a sample survey over the affected HHs. In the survey, totally 214 HHs from 10 villages along the project expressway made responses, including 209 valid responses. See the following table for details regarding the scope of distribution and types of the affected HHs sampled in the survey:

Table 9.1 Types and distribution of affected HHs covered in the survey HHs affected HHs affected by HHs affected by District / Town / by land both land Village resettlement Total county township acquisition acquisition and only only resettlement Unit No. No. No. No. Wuhua Puji Lianjia 21 21 Shalang Longqing 18 18 Fumin Yongding Sancun 23 2 25 Yongding Kuinan 16 1 3 20 Yongding Mailong 14 1 15 Yongding Xinggong 12 4 9 25 Luomian Zhebei 13 2 12 27 Luomian Xiaodian 8 1 8 17 Wuding Shishan Lujin 11 7 18 Shishan Puxi 12 1 10 23 Total 127 33 49 209

58. The interviewed HHs have an average size of 4.37 people. Results of the survey show that 75.12% of the interviewed population are of Han nationality while the remaining 24.88% belong to ethnic minorities.

59. The following table shows information on land contracted to and acquired from the surveyed HHs of the respective villages. For the 176 HHs covered in the survey regarding the impacts of land acquisition, 2.89 mu of arable land is contracted to them on average while 1.03 mu of arable land is acquired, indicating that 35.75% of the arable land contracted to these HHs is acquired. Land acquisition for the project will result in an average decrease equivalent to 1/3 of the income of the affected HHs from crop production. See the following table for the area of land contracted to and acquired from the surveyed HHs:

Table 9.2 Land contracted to and acquired from the surveyed HHs Arable land per Arable land Administrative Land before Arable land Arable land Number of District/County Town/Township Land acquired HH before acquired per Village acquisition before acquisition acquired affected HHs acquisition HH Unit mu mu mu mu HH mu/HH mu/HH Wuhua Puji Lianjia Shalang Longqing 52.53 20.15 13.29 7.54 18 0.74 0.42 Fumin Yongding Sancun 62.02 32.51 58.53 31.51 23 2.54 1.37 Yongding Kuinan 47.6 11.84 40.6 9.34 19 2.14 0.49 Yongding Mailong 28.61 10.41 26.11 9.91 14 1.87 0.71 Yongding Xinggong 56.71 22.98 55.46 22.4 21 2.64 1.07 Luomian Zhebei 49.71 28.04 47.73 26.06 25 1.91 1.04 Luomian Xiaodian 52.3 18.4 50.4 17.5 16 3.15 1.09 Wuding Shishan Lujin 70.43 27.78 69.23 26.58 18 3.85 1.48 Shishan Puxi 197.82 43.8 147.02 30.9 22 6.68 1.40 Total 617.73 215.91 508.37 181.74 176 2.89 1.03

60. The following table shows the impacts on the houses of the surveyed HHs in each village. The 82 households affected by resettlement and covered in this survey have an average floor area of 313 square meters before resettlement and the average floor area of houses to be resettled amounts to 302 square meters, indicating that nearly all of the houses of the affected HHs are demolished due to the impacts of the Project (accounting for 96.30% of the total floor area of their houses before resettlement) despite the fact that the affected HHs on average have relatively large houses. See the following table for details of the houses of the affected HHs before and after resettlement in terms of floor area.

Table 9.3 Floor area of houses originally owned by and to be demolished of the surveyed HHs Adminis- Floor area Number of Original floor Floor area to District/co Town/ Floor area to be trative originally HHs to be area per be demolished unty township demolished Village owned resettled household per household Unit m2 m2 No. m2/HH m2/HH

Wuhua Puji Lianjia 10991 10431 21 523 497

Shalang Longqing

Fumin Yongding Sancun 350 210 2 175 105

Yongding Kuinan 350 350 4 88 88

Yongding Mailong 110 110 1 110 110

Yongding Xinggong 2955 2955 13 227 227

Luomian Zhebei 3890 3890 14 278 278

Luomian Xiaodian 2780 2780 9 309 309

Wuding Shishan Lujin 1165 1165 7 166 166

Shishan Puxi 3109 2859 11 283 260

Total 25700 24750 82 313 302

61. All the households affected by land acquisition and/or resettlement under the Project expressed their satisfaction. 98.86% of the affected HHs are satisfied with land acquisition while 100% of them are satisfied with the resettlement arrangements, showing a relatively high level of satisfaction toward land acquisition and resettlement under the Project and reflecting, on the other hand, the success of the land acquisition and resettlement activities of the Project. See the following table for details of the survey results concerning the affected HHs’ satisfaction toward land acquisition and resettlement under the Project.

Table 9.4 Level of satisfaction by the surveyed HHs toward land acquisition and resettlement under the Project Very Satisfaction Type Satisfied Unsatisfied Total satisfied rate Unit HH HH HH HH % Satisfaction toward 100 74 2 176 98.86% land acquisition Satisfaction toward 57 25 82 100.00% resettlement

X. 10 CONCLUSIONS AND SUGGESTIONS 10.1 Conclusions 62. Main findings on external monitoring are summarized as follows: (1) Change of the range of land requisitioned up to the present from that in the resettlement plan is small, and the demolished range increases owing to design change. (2) Compensation principles in the plan are implemented strictly in this project. In the light of new regulations and local social and economic growth, the compensation standards for land requisition & relocation are improved and detailed. Compared with those in the plan, the compensation standards for most affected types are enhanced greatly. (3) A mechanism of information disclosure, consultation and complaint has been established. All compensation agreements are signed upon negotiation with the affected families and units. Reasonable requirements of the affected families can be satisfied, to the extent permitted under the law. (4) The implementing organizations of resettlement at all levels are provided with experienced workers, and, as required, they have worked overtime to handle in time the problems during resettlement, so the operating efficiency of the implementing organizations is high. 10.2 Suggestions 63. With regard to actual implementation conditions of the Project, improvement suggestions are put forward as follows: (1) As all statistics about land requisition & relocation were collected manually in the past, recalculation from the beginning, if data changed, would be inconvenient for correct statistics and timely upgrade. The implementing organization of resettlement in this project shall popularize a method of data processing by computer and establish a complete database of land requisition & relocation, for which, external monitoring institution has provided necessary supports. (2) As new houses have not been completed for some households relocated, the implementing organizations of resettlement should take necessary measures for coordination for house sites, construction of supporting infrastructure and assisting poverty-stricken families with house construction, so that all relocated households willing to establish new houses can live in new houses as soon as possible. (3) In view that the large-scale land requisition & relocation have been completed, the subsequent task is to help the affected persons recover and enhance their incomes within the shortest time. Seeing that the recovery and enhancement is a long process, the implementing organization should be responsible for employment training, career guidance, employment channel and social security, and take special measures to help the vulnerable groups among the affected persons recover and enhance their incomes.