Ethnic Minority Development Plan

November 2011

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

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

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

NOTE

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

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

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

Cili County Urban Flood Control Subproject

ETHNIC MINORITY DEVELOPMENT PLAN

Cili County PMO

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Table of Contents

I. INTRODUCTION ...... 3

II. BACKGROUND ...... 4

A. PROJECT DESCRIPTION………………………………………………………………………………………4 B. ETHNIC MINORITIES IN HUNAN……………………………………………………………………………….4 C. LEGAL FRAMEWORK………………………………………………………………………………………….4 1. Policy, Plans and Program ...... 5 2. ADB Policy on Indigenous People in Project Areas (PA) ...... 5

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

A. METHODOLOGY……………………………………………………………………………………………….7 B. ETHNIC POPULATION IN FOUR RIVER BASINS………………………………………………………………7 C. ETHNIC MINORITIES IN PROJECT COUNTIES………………………………………………………………...8 D. ETHNIC MINORITIES IN CILI COUNTY………………………………………………………………...8 E. ETHNIC MINORITIES IN PROJECT PROTECTED AREAS (PPA)…………………………………………….10 F. ETHNIC GROUPS AND THEIR DISTRIBUTION……………………………………………………………….13 1. Tujia ...... 13 2. Bai ...... 14 3. Miao ...... 14 4. Other Minorities ...... 14 G. SOCIOECONOMIC CHARACTERISTICS OF MINORITY COMMUNITIES…………………………………………………..14 H. On Going Minority Development Programs………………………………………………...... 17

IV. PROJECT IMPACTS ON MINORITIES ...... 19

A. PAST FLOOD IMPACT………………………………………………………………………………………..19 B. PROJECT BENEFITS FOR DIFFERENT BENEFICIARIES…………………………………………………….20 C. POTENTIAL NEGATIVE IMPACTS OF RESETTLEMENT……………………………………………………...23 D. EXPECTATIONS AND CONCERNS……………………………………………………...... 23

V. ACTION PLAN ...... 32

A. SPECIFIC MEASURES/ACTIVITIES…………………………………………………………………………..34 1. Mitigation Measures ...... 34 2. Enhancement Measures ...... 34 3. Project Benefit Measures ...... 34 B. BUDGET AND FINANCING SOURCES………………………………………………………………………..34 C. IMPLEMENTATION ARRANGEMENT………………………………………………………………………….34 D. MONITORING AND EVALUATION (M&E)…………………………………………………………………….34

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I. INTRODUCTION This Ethnic Minorities Development Plan (EMDP) is prepared to ensure equitable sharing of the project benefits and mitigation measures by the concerned minority communities and individuals in the project area of the Cili Flood Control Subproject, which is part of Hunan Provincial Flood Management Project in Hunan Province, People‟s Republic of China (PRC). The EMDP for Cili Subproject is based on the PPTA‟s Resettlement Plan, the Social and Poverty Assessment, and consultation with ethnic minority groups, local county governments and their respective line agencies. A summary of distribution and socioeconomic characteristics of ethnic minorities in the project areas – four river basins, and 35 subprojects will be the context for such assessment. Based on review of social and poverty conditions of ethnic minorities in both Cili County and the project protected areas, adequate provisions to enhance the economic conditions of minority groups have been integrated in project design. Provisions for special mitigation measures have been included in the resettlement plan, which will help ensure that ethnic minorities adversely affected by resettlement will also benefit from the project. Current government policies and programs for ethnic minorities further help to protect and enhance project benefits to ethnic minority groups. This plan targets the Tujia, Bai, and Miao nationalities in the project area, which account for about 50.0%, 30.0% and 7.0% of the total minority population in Cili County.

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II. BACKGROUND A. Project Description As one of the 35 subprojects of Hunan Flood Management Project, the proposed Cili subproject is located in Chengguan Town of Cili county, under the jurisdiction of Zhangjiajie City in northwest Hunan. It‟s the center of politics, economy, culture and science in Cili County.

Cili county covers an area of 3 480 sq. km and is embraced by mountains and divided into three parts by Lishui River, Loushui River and Lingxi River, which flow through the territory of Cili. With most of its buildings built along the riversides, Cili suffered flood disaster once every three to five years, which largely threatened the people and their properties and hampered the local economic development. The disastrous flood occurred in 1998 with water level up to 96.28 meters and 80% of the city was drowned. Electric power and communications were cut off and more than 48 000 people were affected, causing a direct economic loss of 0.82 billion yuan.

The major purposes of the proposed Cili subproject include: （i）to protect Cili from flood threat;（ii） to strengthen the management of Lishui River drainage basin, which is a component of Hunan Flood Management Project. The subproject includes:

 Three protection zones in Cili along Lishui, Loushui and Lingxi with 17.319 km dikes;

 Five sluice gates and one pump station will be built in Cili County.

With all these completion, the protection area will reach 7.22 sq. km. According to its original budget, the total investment of Cili subproject will reach CNY 93.21 million, out of which, 37 percent would be financed by ADB loan.

B. Ethnic Minorities in Hunan

There are as many as 55 ethnic minority groups1 in Hunan making up a population of 8.33 million or 12.2% of Hunan‟s total population There is one autonomous prefecture of ethnic minority in Hunan, which administrates 8 counties, 7 minority autonomous counties with more than 50% of the populating as minorities and 2 unofficial minority counties enjoying minority county benefits. Besides these minority counties, there are 100 ethnic minority townships in 34 counties. In Hunan, there are 8 minorities with a population over 10,000, they are Tujia, Miao, Dong, Yao, Bai, Hui (Muslims), Zhuang and Mongolia. These eight groups make up over 99.3% of the total minority population of Hunan. Most of them are located in the western Hunan (i.e., the Xiangxi Prefecture, Huaihua and Zhangjiajie municipalities), and the minorities in the western Hunan account for 75% of Hunan‟s total minority population. Table 2-1 presents the details based on the 5th national census. Tab 2-1: Minority People in Hunan Province (2007)

Items Ethnic group Population % of minority % of total groups population Main group Han 59,723,105 87.8 Tujia 3,536,976 42.4 Minority groups Miao 2,401,869 28.8 Dong 1,027,390 12.3

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

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Yao 951,161 11.4 Bai 175,836 2.1 Hui 126,578 1.5 Zhuang 33,925 0.4 Mongol 23,804 0.3 Other 56,364 0.7 Subtotal 8,333,902 100 12.2 Total 68,057,007

Source: Fifth Consensus data, Hunan Statistical Year Book 2008.

C. Legal Framework

1. Policy, Plans and Program

After 1949 the PRC Government adopted a policy of ethnic equality, in which all groups are legally and constitutionally equal. Given the inferior social and economic conditions of most minorities, the government adopted a policy of positive discrimination in favor of the minority nationalities (minzu) to help them "catch up" with the mainstream population. To implement this policy, the Government first clarified, enumerated and mapped the identity of ethnic groups. PRC post-1949 policy defines nationalities (minzu) in very precise terms, based on, inter alia, shared language, territory, economic base, and traditions/culture. Under this definition, the Han constitute the dominant nationality in the PRC. Some minority nationalities (e.g. Hui and Man) have become assimilated into the Han language and cultural traditions - but are still recognized as minority nationalities. Since 1949 there has been a tendency for smaller ethnic groups to fuse and merge in the definition of officially recognized minority nationalities.

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

2. ADB Policy on Indigenous People in Project Areas (PA)

The Asian Development Bank (ADB) notes that the social indicators, economic status and quality of life of minority peoples are often below those of the mainstream population. While fully recognizing the sovereignty of the borrowing country, ADB accepts that it has a responsibility for ensuring (i) equality of opportunity for national minorities and (ii) that its operations and assistance to developing member

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countries do not negatively affect the cultural identity, welfare and interests of national minorities. Where ADB-assisted projects will potentially cause adverse affects on national minorities, ADB requires the borrowing country (or project initiator of private sector) to prepare an Minorities Population and Development Plan (MPDP) acceptable to ADB. A MPDP should describe the socio-economic characteristics of minorities affected by the project, identify significant project impacts, both positive and adverse which affect them, and should consider modifying or redesigning the project to minimize adverse effects and/or include an acceptable compensation plan. The MPDP also provides procedures for project implementation, monitoring, and evaluation of how to handle minority affairs. The ADB‟s Policy on Indigenous Peoples (1999, Manila) sets out the criteria for determining whether or not an MPDP should be prepared. The key criteria are: ”… indigenous peoples should be regarded as those with a social or cultural identity distinct from the dominant or mainstream society, which makes them vulnerable to being disadvantaged in the processes of development.” (p.6, op cit); ”the Initial Social Assessment determines that indigenous peoples are likely to be affected significantly...or that indigenous peoples are disadvantaged or vulnerable to an intervention because of their social and cultural identity, an MPDP must be developed.” (p.18, op cit); An EMDP should be prepared if a project “affects indigenous peoples adversely and significantly” (p. 19, op cit).

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III. ETHNIC MINORITIES IN THE PROJECT AREA

A. Methodology

In order to understand the basic social and economic profiles of the affected people and identify the impacts to be brought by the Project, a social and poverty assessment was carried out by the PPTA consultant with the assistance of Cili Subproject PMO, which included collecting secondary data, and conducting interviews among different stakeholders. The focus group discussions and sample household survey, together with consultation of local government agencies provided much of the quantitative and qualitative materials that were used to prepare this report, which include stakeholder analysis, needs and concerns among women and ethnic minorities, and poverty profile for affected communities and individuals. It has also been used as the basis for identifying the potential project benefits and impacts, assessing their significance, and formulating complementary measures to enhance positive benefits and mitigate negative impacts. A total of 20 sample households and 93 persons were surveyed from 2 residential committees or villages from Chengguan Town, Cili County. Among these sample households, 7 of them or 35 percent were ethnic minorities, including 4 households and 24 persons of Tujia nationalities, 2 households and 10 persons of Bai nationalities, and 1 household and 6 persons of Miao nationalities. In addition, about 6 gender separated focus group discussions were conducted, followed with stakeholder interviews and key informant interviews among officials from relevant county agencies. Only the data on ethnic minority were used to prepare this EMDP.

B. Ethnic Population in Four River Basins

In order to have a basic understanding on distribution and profile of ethnic minorities in the project areas, a great deal of ethnic minority data was collected for the four river basins and the project areas for the Project. For the four river basins, Table 3-1 presents the distribution of different ethnic minority groups. In comparison with the Hunan average, the share of minority population in the four river basins is much higher, indicating relatively high concentration of ethnic minorities. Of the total population in the four basins, there were 6.79 million ethnic minority people, accounting for 13.3%. Among them, Tujia, Miao, and Dong are the main ethnic groups, accounting for 11%, 8% and 4% respectively. Majority of minority people are concentrated in the two western river basins, with ethnic minorities accounting for 52% in Yuanjiang and 64% in Lishui. About 85% of the total minority population in Hunan Province is located within these two river basins.

In terms of distribution of different minority groups, Tujia nationalities mainly reside in Xiangxi Prefecture, Zhangjiajie and Changde Municipalities. There were 2.53 million of Tujia nationalities in these three municipalities, accounting for 90.4% of the total Tujia people in Hunan Province. Miao nationalities are mainly living in Xiangxi Prefecture, Huaihua and Shaoyang Municipalities, with 1.95 million people and account for 95.4% of total Miao people in Hunan. Dong nationalities are mainly in Huaihua Municipality, with 834,720 persons or 94% of total Dong nationalities in Hunan. Yao nationalities are concentrated in Yongzhou City – the south end of Hunan, with 531,320 persons or 71.8% of the total Yao people in Hunan. Bai nationalities are mainly located in Zhangjiajie City with 109,076 persons or 81.4% of total Bai people in Hunan Province.2 Most of the minorities are concentrated in the mountainous regions in the north, west, and south of Hunan, bordering with neighboring provinces.

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

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

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

C. Ethnic Minorities in Project Counties

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

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

Items Xiangjiang Zishui Yuanjiang Lishui Total Hunan Total Population 14,260.51 6,417.93 3,234.54 1,849.22 25,762.19 68,057.00 Han 13,551.88 6,365.04 2,106.48 583.13 22,606.53 59,723.10 Total Minorities 708.63 52.79 1,128.06 1,266.09 3,155.66 8,333.90 Percent of Total 4.97% 0.82% 34.88% 68.47% 12.25% 12.25% Tujia 10.58 1.23 392.72 1,131.86 1,536.39 3,537.00 Percent of Total 0.07% 0.02% 12.14% 61.21% 5.96% 5.20% Yao 493.68 7.50 70.86 0.10 572.14 2,401.87

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Percent of Total 3.46% 0.12% 2.19% 0.01% 2.22% 3.53% Miao 9.45 9.86 422.30 22.80 464.41 1,027.39 Percent of Total 0.07% 0.15% 13.06% 1.23% 1.80% 1.51% Dong 3.70 2.98 229.74 0.31 236.72 951.16 Percent of Total 0.03% 0.05% 7.10% 0.02% 0.92% 1.40% Bai 0.72 0.10 1.44 108.25 110.40 175.84 Percent of Total 0.01% 0.00% 0.04% 5.85% 0.43% 0.26% Hui 3.49 26.80 5.96 1.23 37.59 126.58 Percent of Total 0.02% 0.42% 0.18% 0.07% 0.15% 0.19% Zhuang 18.28 0.41 0.51 0.21 19.31 33.93 Percent of Total 0.13% 0.01% 0.02% 0.01% 0.07% 0.05% Others 168.84 4.01 4.52 1.54 178.80 80.17 Percent of Total 1.18% 0.06% 0.14% 0.08% 0.69% 0.12% Source: Hunan Provincial Ethnic Commission.

Most of the minority people are located in three types of “minority counties”. The first type is official recognized ethnic minority autonomous counties. There are 5 such counties in the project areas, accounting for one third of them in Hunan. They are Jianghua, Cili, Fenghuang, Baojing and Xinhuang Counties. The second type is non ethnic minority county but enjoying the same status and benefits of the minority counties. Cili County is such county. The third type is non minority counties, but with more than 50% of the total population being ethnic minorities. Unlike the second type, they do not have minority county status and are not entitled to the benefits for minority counties. In the project areas, there are three such counties, accounting 43% in Hunan. They are Jiangyong, Cili and Shimen Counties.

Of these 9 counties, 2 are from Xiangjiang, 3 from Lishui, and 4 from Yuanjiang. Its total population is 3.59 million, with 2.57 million being ethnic minorities, which accounts for 72%. The total minority population from these 9 counties accounts for 82% of the total minority population in the project areas (3.15million). Of the total population, urban population was 0.91 million, accounting for 25.2%, which is only 74% of the project area average. The rural population was 2.68 million, accounting for 74.8%, which was more than 11.5 points higher than the average of 46 project counties. In other words, these minority concentrated counties have much lower urbanization level than the provincial average. There are 3.69 million mu of farmland in these 9 counties, averaging 1.03 mu per person, which is similar as the provincial average. But the overall economic development is relatively low compared with the project area average or Hunan Province. For example, the per capita GDP in these 9 counties was only CNY 9,420 in 2007, which was only 65% of the provincial average and 74% of the PA. The rural per capita income was CNY 3,240, which is only 75% of the project area average and 70% of the provincial average. Along with income disparity, considerable difference also exists in education levels, and employment structure between Han dominated regions and minority dominated regions. For example, illiterate rate was 6.8% among the minority regions in Hunan, which was 25 points higher than that of Han dominated regions; and percent of the minorities with high school or above education was 14.1%, which was 2.24 points lower than that of Han nationalities. Since most these minority counties are located in the high mountains with poor access, considerable poverty exists in these counties. Of these 9 minority counties, 8 are national or provincial poverty counties. There are 990 poverty villages and 0.62 million rural poor, accounting for 22% of the total rural population in the 9 counties, of which the extremely poor account for 23%.

D. Ethnic Minorities in Cili County

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Cili County is located in the northestern part Zhangjiajie City. It has 3,480 km2 of land area with average density being 194 persons per km2. Most of the area made of mountains and rivers with only 12.1% as farmland (41,993 ha), averaging 0.94 mu per person, lower than the provincial average. In 2008, there were 235,000 households and 688,900 people with 48% being female and 52% as male. Of the total population, 86,800 persons are living in Chengguan town (project area), Cili county, accounting for 12.6%.

There are 10 ethnic minorities in Cili and most of them are Tujia, Bai, and Miao nationalities. These three ethnic minorities are native people, who have been living there for over 800 years. The total ethnic minority population in Cili was 355,700 persons in 2007, accounting for 51.63% of the total population. Among them, Tujia nationality accounts for 57%, Bai nationality accounts for 34% and Miao nationality accounts for 9%.

The overall economic development of Cili County is still lagging behind. In 2007, per capita GDP in Cili was only CNY 8,068, which was about third fifths of the provincial average (Table 3-4). The rural per capita income was CNY 3,192, which is lower than Hunan average. Of the total rural 606,400 persons, 77,661 are rural poor (below CNY 900), accounting for 12.8%. Among them, 25,657 persons are extremely poor with per capita income below CNY 650. Majority of rural poor are concentrated in key poverty villages, among which only 55% have road access, 36% have tap water, and 70% have post service.

Table 3-4 Comparison of Economic Condition between Cili and Hunan Average (2007) Social and Economic Indicators Cili Hunan Percent Total GDP (CNY billion) 56 920 6.1% Per Capita GDP (CNY) 8,068 14,492 55.7% Per capita farmland (mu) (1 h a = 15 mu) 0.93 1.30 71.5% Per capita income in rural area (CNY) 3,192 3.904 81.8% Per capita income in urban area (CNY) 10,534 12,294 85.7% Source: Hunan Provincial Statistical Yearbook 2008 and field survey. E. Ethnic Minorities in Project Protected Areas (PPA)

In Cili County, the proposed flood control subproject will directly protect part of urban area in Chengguan Town, which is defined as the project protected area (PPA). Based on 1 in 20 year return flood protection standard, the proposed flood works will form three protection zones along theLishui , Loushui and Lingxihe Rivers. They include the main urban protection zone, Chengbei Protection Zone and Yong‟andu Protection Zone. The total land area of these three protection zones is 7.22 km2, involving 12 residential committees. All of them are under administration of ChengguanTown.

Chengguan Town is one of 16 township units in Cili County. It includes 12 administrative villages and 10 urban residential committees, representing both rural and urban part of the town. In 2007, there were 35,250 households and 86,800 persons in Chengguan Town, accounting 15% and 12.6% of Cili County respectively. Among them, 32.7% are ethnic minorities with 50% as Tujia nationalities, 30% as Bai nationalities, and 7% as Miao nationalities. The basic economic condition is quite different between the rural part of and the urban part of Chengguan Town. In rural part of the town, there are 12 villages with 5,394households and 16,477 persons. About 97% of population is rural residents with per capita farmland being 0.58 mu. In urban part of the town, there are 10 residential committees with 29,856 households and 70,323 residents. Rural population is only 4,005 rural residents, accounting for less than 1%. There are only 1915 mu of farmland, average 0.48 mu per rural individual. The PPA will cover most of the urban part of Chengguan Town, involving 10 urban residential committees. There are

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23,839 households and 63,747 persons in PPA, accounting 73.4% of the total population in Chengguan Town (Table 3-5).

Table 3-5: Basic Situation of Chengguan Town Total Chengguan Total Total Urban Total Per capita Villages Rural Town Households Population Residents Farmland Farmland Residents Rural Area 12 5,394 16,477 15,983 489 9,327 0.58 Urban Area 10 29,856 70,323 4,075 66,248 1,915 0.48 Total 22 35,250 86,800 20,058 66,737 11,242 0.56 PPA 12 23,839 63,747 4,075 59,672 1340 0.33 Percent 55% 67.6% 73.4% 20.4% 89.3% 11.9% Source: Cili PMO and field survey.

Of the total population, 25% are from 12 residential committees, and 75% from various institutions and enterprises. The male and female ratio is 100: 99. 59,672 persons or 93.6% are urban residents. Of total population, there were 31,597 ethnic minorities, accounting for 47%. Table 3-6 provides detailed information among 12 residential committees within PPA. Most of these villages or residential committees are basically urban communities, with 92% being urban. Even excluding those people from enterprises and institutions, about 93.6% of the total population has non-agricultural status. For the remaining 6.4% of rural population, the average farmland is only 0.33 mu. Most of them are used to grow vegetables and other cash crops. The continuous urban expansion and farmland acquisition around the county town is the main cause for such change.

As the county town of Cili County, Chengguan Town has relatively developed secondary and tertiary activities. There are 4,125 various sizes of enterprises in Chengguan Town, including 32 township enterprises, 88 village enterprises and 625 privately owned enterprises, and 4,005 individual small businesses. The total gross output value was CNY 679 million. The gross output for agricultural sector was CNY 421 million, with per capita income for rural population being CNY4, 300. The total grain production was 21,000 ton or 242 kg per person. In 2007, GDP in the town was CNY 447 million, averaging CNY 5,149 per person, which is 53% higher than the county average.

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Table 3-6: Demographic Profile of Residential Committees in PPA (1) (2007) Residential Total Total Male Female Rural Urban Percent of Committees Household Population Population Population Population Population Urban (Villages) Population Baiyun 655 1823 916 907 448 1375 75.4 Shuang'an 524 1459 733 726 359 1100 75.4 Liyu 298 829 416 412 204 625 75.4 Baishajin 357 994 500 495 245 750 75.4 Zixia 476 1326 666 660 326 1000 75.4 Longping 548 1525 766 759 375 1150 75.4 Beigang 387 1077 541 536 265 812 75.4 Taiping 560 1558 783 775 383 1175 75.4 Jintai 446 1243 625 618 306 937 75.4 Yong'an 714 1989 999 989 489 1500 75.4 Yingtian 393 1094 550 544 269 825 75.4 Cha'an 595 1657 833 825 408 1250 75.4 Enterprise & 17887 47173 23705 23468 0 47173 100.0 Inst. Total 23839 63747 32034 31713 4075 59672 93.6 Note: For county institutions and enterprises, no household figure is available. Source: Cili PMO, data of 2007.

Table 3-6: Demographic Profile of Residential Committees in PPA (2) (2007) Residential Total Per Capita Total Male Female Minority Percent Committees Farmland Farmland rural Labor Labor Population of (villages) (mu) (mu) Labor Minority Baiyun 0 0.00 6 4 2 1010 55.4 Shuang'an 240 0.67 168 93 75 643 44.0 Liyu 0 0.00 16 10 6 260 31.4 Baishajin 156 0.64 77 42 35 380 38.2 Zixia 0 0.00 13 8 5 221 16.7 Longping 168 0.45 64 34 30 1105 72.5 Beigang 132 0.50 82 44 38 176 16.3 Taiping 0 0.00 20 12 8 690 44.3 Jintai 0 0.00 10 5 5 465 37.4 Yong'an 313 0.64 117 65 52 476 23.9 Yingtian 0 0.00 8 5 3 882 80.6 Cha'an 331 0.48 95 50 45 995 60.0 Enterprise & 0 0 0 0 24294 51.5 Inst. Total 1340 0.33 676 372 304 31597 50 Note: For county institutions and enterprises, no household figure is available. Source: Cili PMO, data of 2007.

In the project protected area, among total beneficiaries, 31,597 persons are ethnic minorities, accounting for 50%. The dominant minority groups are Tujia, Bai, and Miao, which make up 89% of the total minority populations in the PPA. These minority persons are entitled with the same rights to

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education and employment as Han people and have not obvious difference in their economic conditions and income levels. Table 3-7provides composition of ethnic background among communities in PPA.

During the field assessments, a number of participatory assessment sessions, consultations, discussions and interviews were held with the minority population in the PA. These included staff of project PMO, county minority affairs bureau, poverty alleviation office, urban and rural residents, poorest of the poor, entrepreneurs, traders and sellers in the selected communities. Because of the frequent floods and serious impacts, during consultation, the different stakeholders all expressed their strong support toward the project. All of them marked the flood control project as the first priority followed with more income generation opportunities, better local road within the community, better access to credit, better education conditions and lowering education fee, and better health care service.

Table 3-7: Ethnic Profile in the Project Protected Areas for Cili Subproject Residential Ethnic Ethnic Groups Total Committees/ Minority Population Han Tujia Bai Miao Yao Hui Zhuang Other Villages Population Baiyun 1823 813 1010 505 303 81 40 0 25 56 Shuang'an 1459 816 643 322 193 51 26 0 0 51 Liyu 829 569 260 130 78 0 0 0 0 52 Baishajin 994 614 380 190 114 30 15 0 10 21 Zixia 1326 1105 221 111 66 18 0 0 0 27 Longping 1525 420 1105 553 332 88 44 22 28 39 Beigang 1077 901 176 88 53 14 0 0 0 21 Taiping 1558 868 690 345 207 55 59 0 0 24 Jintai 1243 778 465 233 140 37 40 0 0 16 Yong'an 1989 1513 476 238 143 38 19 0 0 38 Yingtian 1094 212 882 441 265 71 35 0 0 71 Cha'an 1657 662 995 498 299 80 40 0 25 55 Enterprise & Inst. 47173 22879 22294 13902 6236 1663 831 416 520 727 Total 63747 32150 31597 1753 8426 2226 1150 438 607 1199 Percent 100.0 50 50 55.5 26.7 7.0 3.6 1.4 1.9 3.8 Source: Cili Subproject PMO and field survey.

F. Ethnic Groups and Their Distribution 1. Tujia The Tujia people live predominantly in (i) western and northwestern Hunan; (ii) southwestern Hubei; (iii) eastern Chongqing. In the project area the Tujia is the largest minority group making up more than 50% of the total minority population in Cili. This ethnic minority group was highly assimilated to Han in many aspects. Distinctions between the Tuija and Han are considered to be very slight although in more remote areas there is a greater maintenance of Tuija cultural and social identity than in most of the more readily accessible townships. The Tujia people in western Hunan have resided since the year 910 or so. The origin of Tujia people has been associated with one of the following three versions: (i) they are descendants of the ancient Ba people; (ii) they moved to western Hunan from Guizhou Province; and (iii) they moved from Jiangxi Province towards the end of the Tang Dynasty (618-907). Most of local

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legends, as discovered during the PPTA field surveys, support the third origin. The Tuija cannot be readily identified as an indigenous group in the context that they descended from population groups in the area before the imperial Chinese state was created. 2. Bai The Bai people as a minority group with long history live mainly in Yunan Province with small numbers in Guizhou, Sichuan, and Hunan. The ancestors of Bai people had settled in Cili in 1252, after participating the fighting between Mongols and South Song Dynasty. There have been over 800 years since they settled there. There are 8,426 Bai people in Cili, accounting for 30% of the total population. 3. Miao The Miao people ranks third in Cili County, despite being the largest ethnic minority groups in Xiangzi Tujia and Miao Autonomous Prefecture. With a population of more than 7 million in China, they are found mainly in (i) Guizhou, Yunnan, Hunan and Sichuan provinces, and (ii) Guangxi Zhuang Autonomous Region. A few also live on the Hainan Province and in southwest Hubei Province. In Cili, there are 2,226 Miao nationalities, accounting for 7.0% of the total minority population. Most of them are scattered in existing Tujia dominated rural villages and urban communities. Specific cultural markers that set the Miao apart from other ethnic groups in China is there own unique dancing and singer. Miao women and men are very good dancers and singers and are very proud of their dance and music culture. Miao women like wearing silver and artisans skilled in making silver artifacts for women to wear are highly valued. Miao embroidery is also considered to reflect a high level of creativity and Miao women who are competent at embroidery are highly valued in their own community. The Miao are also very good at making an ornate range of pipes for smoking tobacco. Other cultural markers of the Miao in the project area include the smoking of pork, which is considered a delicacy not only among the Miao but other ethnic groups as well. Finally, of course there are the distinctive Miao houses with characteristic Miao designed roofs that date back many centuries. 4. Other Minorities Other ethnic minorities, including Yao, Hui, Zhuang, etc., are present in PA. These minorities account for less than 12% of the total minority population and they are mostly individual households who are settled in urban centers. None of these minorities are native to the project area.

G. Socioeconomic Characteristics of Minority Communities

For both the whole county and the project protected area in Chengguan Town, since the ethnic minorities are the majority among different townships and villages, the general social and economic profiles of these communities will be the profiles for ethnic minorities. There are some specific characteristics relevant to Tujia, Bai and Miao in the project areas: Although some of older Tujia, Bai and Miao people in remote villages still speak their own languages and most of them use their native language at home, most of them can speak Mandarin fluently. This is particularly true for young people and those in the urban area. Among these ethnic minorities, there are wide spread practice of inter-marriages between the Tujia and Han, Bai and Han, Bai and Tujia, and so on. For example, among sample households, half of them are mixed families. These ethnic groups have been living in harmony for many years. They share similar believes in various kinds of nature gods. Therefore, the identities of ethnic background are quite weak

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among them. People could only identify their ethnic background through their surnames instead of distinctive language and living style. According to the interview with officials from the county poverty alleviation office and ethnic affairs bureau, these three ethnic groups (Tujia, Bai and Miao) have similar economic activities (agriculture and livestock) and demonstrate similar levels of income and economic development. In other words, the level of economic development in different communities is more attributed to different natural environment and infrastructural conditions (such as high elevation, poor access, limited irrigation, and poor soil condition) than the difference of ethnic background, since majority of population are ethnic minorities. The results of sample household survey in the project protected area also confirmed such fact. Table 3-9 presents the socioeconomic characteristics of the sample households in the PPA and the rural sample households in the county. As one can tell, there is no significant difference in terms of income and social economic conditions between Han families and minority families in the project protected area. In fact, the income per capita and education levels among the minority households seem to be higher than that of the Hans. The Han families seem to have larger housing space, more farmland and higher non-farm incomes than that of minority families. On the other hand, the difference between the sample households in PPA and the county average is much greater, which is reflected in most aspects, such as education, income level, living condition, and non-farm income activities. Table 0-１: Socioeconomic Characteristics of Minorities and Han in PPA Han Category (10 sample Minorities Rural Average Indicator Unit HHs)1 (20 sample HHs)1 in Cili County *

General Average HH Size Persons 3.5 4.5 3.8 Per capita annual income CNY 2,850 3,120 2.118 (median)Adult Illiteracy 1.1% 2.8% 9.5% Primary school graduate 6.7% 9.5% 35.4% % Education Middle school graduate 36.4% 37.9% 27.6%

High school graduate 51.7% 47.5% 16.5% Above high school 4.1% 2.3% 1.0% Cultivated land per person Mu 0.35 0.30 0.83 Agricultur Grain Production per Person Kg 420 420 490 e Housing spaces per personj M2 91 83 32 Agricultural Inputs per person CNY 1,890 1,420 428 Agriculture 1（10.0%） 4（20%） 61982（41%） Animal Husbandry 1（10.0%） 5（25%） 34770（23%） Income Non-Farm (by being employed 54423（36%） HHs (%) Source for construction, factories, 8（80.0%） housekeeping, restaurants, etc.) 11（55%） Farm vehicle 29% 33% n.a. Assets % Motorcycles 53% 40% n.a.

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Air Conditions 43% 48% n.a. Color TV 88% 92% n.a. Mobile Phone 56% 63% n.a. 1 The samples were selected from common residents excluding government officials at random. Source: Field survey and Cili County 2001 Statistical Yearbook.

Poverty In Cili County, there is considerate rural poverty with 52,004 persons with per capita annual income below CNY 1000, which accounts for 8.6% of the total rural population. Among them, 25,657 persons or 4.2% are extremely poor with per capita income below CNY 650. Most these rural poor are distributed among 110 poverty villages in 16 townships. In ChengguanTown, were the PPA is located, there are 3 poverty villages and 6,707 rural poor, accounting for 1.11% of the total rural population in Chengguan Town, which is about half of the poverty incidence in the county. None of these poverty villages are located in PPA. There are still 250 rural poor in PPA, accounting for 3.7% the total rural poor in Chengguan Town, and 0.3% of total rural poor (77,661 persons) in Cili County. Relatively speaking, the urban poverty population occurring rate is 12.8％, which is lower than rural poverty population occurrig rate (the urban poverty line is the income per month per capita less than CNY 200 and the income per capita is CNY 2400).

Income In Cili County, the average per capita income among rural population in 2007 was CNY 3,192. About 30% of the income came from non-farm sources. In PPA, which covers most of the urban part of Chenguan Town, the average per capita income among 12 residential committees was CNY 4,670, which is 46.4% higher than the county average. The better infrastructure and easy access to non-farm based income activities in 12 urban residential committees might explain such difference, which was confirmed from surveyed sample households in PPA. Among 30 sample households, per capita income was CNY 4,897, with 62.7% of income coming from non-farm sources. Among them, per capita income among Han families was CNY 4,250, which is slightly lower than that among minority families (CNY 5,220). Education In PPA, according to the sample survey (Table 3-9), there is some difference between Han families and minority families in terms of their education background. For example, minority families have higher illiterate rate or 2.8% compared with 1.1% among Han families. Han families seem to have higher number of people with high school education (51.7%) than that of minority families (47.5%). However, if comparing the education conditions among the rural people in Cili, such difference is not significant. In other word, both Han people and minority people from PPA have much better education conditions compared with that the county average. For example, the illiterate rate in the county was 9.5%, which is more than 3 times higher than the people in PPA (2.3%). The percent of people having high school or above education among PPA was 48.9%, which is 3.0 times of that in the county. Agriculture Since majority of rural people are relying heavily on planting as their main source, the availability of irrigation is one important indicator of farmland productivity. In Chengguan Town, of 749ha farmland, 90% are irrigated farmland. In Cili County, of the total farmland, there are only 16790 ha of farmland with irrigation, accounting for 40% of the total farmland (41993ha). Among them, the farmland with all year round of irrigation is only 9230 ha, accounting for 22% of the total farmland. STIs/HIV/AIDS Transmission: Fortunately, no HIV/AIDS cases were found or reported in the project county. The construction of the flood control works will bring quite a few construction workers to the

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project area, although most unskilled laborers will come from nearby villages. These workers will unavoidably interact with local minority population. Therefore there would be increased risk of exposure to HIV/AIDS and STIs for minority population. Gender Aspects: China is committed to gender equality and women and men have enjoyed an equal status by law. Female participation in agricultural activity is high in China, as it is in many parts of the world. In the communities surveyed8, the basic household principle is one of men and women sharing the farming work. Women also undertake most of the additional childcare and household maintenance tasks as well as looking after the livestock. Sharing of financial resources was also common, especially where most income came from agriculture. However, one visible difference between men and women in the project affected communities is their education background. According to surveyed individuals, less than 25% of female labors have middle school or above education, and 20% of them are considered as illiterate or semi-illiterate. In contrast, for male labors, 85% of them have middle school or higher education, and none of them are illiterate. Because of this difference, there is considerable difference in terms of income generation skills. In general, the number of male labors with specific income generation skills is almost doubled that among female labors. Female labors are mainly limited in small trade in local area, while male labors tend to be concentrated in construction, transport, business, and manufactures. According to Cili Women Federation, the number of women who went out as migrant labors is relatively small compared with other counties, which is mainly contributed by low education background, traditional attitude, lack of skill and language barrier (this is mainly for middle aged women). Because of such constraint, in group discussions, most of female participants ranked skill training as high priority among various activities. H. On Going Minority Development Programs  In autonomous region/prefecture/county in China, all activities are minority development oriented. In other words, central task of the autonomous governments is to promote minority people‟s development by an overall master plan and sector development plans of ethnic minorities. The sector development plans include: poverty reduction and development plan  agricultural and forestry development plan;  industrial development plan;  women‟s development plan;  children‟s development plan;  educational development plan;  transport development plan;  public health development plan; and  others. These plans are often linked with various programs, e.g., land conversion program is linked with forestry development plan and food for work program in linked with poverty development plan. Budgets for implementing these plans, as well as for other activities, are pre-determined and specified. In other

8 2 group discussions were held with women – 1 in rural village and 1 in urban residential committees. Most participants are minorities.

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words, there is hardly any flexible money available for additional activities imposed by such project like this ADB road development project9. In addition to the sector development programs, there are specific minority development programs in the project counties that are administrated by Cili Ethnic Minority Affairs Bureau. The programs are formulated based on the needs of each county through bottom-up and top-down approaches. Minority development programs include the provisions of providing social infrastructures (primary/secondary school, health clinic, housing upgrading, and recreation facilities), economic infrastructures improvement (rural road, water supply and electricity connection), and capacity building (training on farming, and training on income-generating activities with microfinance). The minority development programs often join hands with poverty reduction programs. Cili obtains specific minority development oriented support for all sectors from higher-level governments. In addition, the minority affairs sector itself, had also independently implemented a number of development programs with a total investment of CNY 1.55 million each year, which included CNY 1.30 million from national grant to be used for supporting minority villages in their poverty alleviation efforts, such as food and clothing, village infrastructure and production development; and CNY 250,000 from Provincial Ethnic Affairs Commission each year to be used to provide support for education and health care for minority people. In addition to these government support, Cili County also received a number grants from various NGOS, such as those from Hong Kong, Taiwan and other counties, which provide funding for rebuilding school buildings, improving health, water resources as well as repairing churches (Table 3-10).

Table 3-10: Minority Development Programs in Cili County (2001-2007)

Programs Sponsor Agencies Investment (Yuan) Implementatio n Agencies Population Development Activities National Grant CNY 400,000 per year CMAB Rural infrastructure – electricity, road, and National Grant CNY 500,000 per year CMAB water Food and Clothing for Minority Villages National Grant CNY 400,000 per year CMAB Minority Children Education Support Provincial Grant CNY 150,000 per year CMAB Minority Heath Care Assistance Provincial Grant CNY 100,000 per year CMAB Rural Education Support Hong Kong, Taiwan CNY 100,000 CMAB NGO Total CNY 1.55 million Source: Cili Minority Affairs Bureau (CMAB).

9 Specifying budget uses is also an anti-corruption measure

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IV. PROJECT IMPACTS ON MINORITIES

A. Past Flood Impact Cili County is located in the middle stream of Lishui River. It has suffered from the frequent flood and water logging disasters. According to historic records, flood disasters took place every 3~5 years, which not only endanger the lives and properties of its population and slow down the economic development in the county town. During the period from the end of June to the beginning of July in 1983, the highest water level of Chengguan power station reached 95.68m. The flood washed away 270,000 mu of farmland, destroyed 2,055 buildings, killed 18 people and injured 69, causing a direct economic loss of CNY 13.15 million. From July 20 to July 231998, the water level was raised to 96.28 mm. The whole county town was inundated and 480,000 persons were affected. The estimated direct economic loss for the county town amounted to CNY 0.82 billion. During the site survey and interview, impacts of the flood in terms of both economic loss and personal experience were described by different groups of participants, which were provided in Table 4-1.

Table 4-1: Description of Flood Impacts by Different Groups in Project Area Groups Actual Flood Impacts to the Communities Rural Areas  All farmland were flooded with no harvest; Group (6 male  20 houses were inundated or damaged; and 5 female)  Small shops and businesses were seriously affected;  Articles in the house flooded away;  Schools were interrupted; Water remain there for 2 weeks; Urban Areas  Water came up to second floor of residential committee office; Group (5 male  Residents in lower areas have to be relocated since their houses were damaged; and 5 female) Some of them had to move up to 4 times;  residents could not sleep well during summer, afraid taking off clothes;  and males had to be home every night in case flood; Small business  In 1998, since flood came too quick, inventory of clothing store could not be moved persons and lost several thousand yuan. One rice store next door lost over 100,000 yuan.  Small restaurant were flooded, and all belongs were washed away;  After 1998, there were a few small floods almost once each year;  Repairing the damaged house by flood Factory  Due to lower location, the plant was affected by flooding each year, including both structures and products;  A small dike was built by factory around the plant, which was no use during large flood.  During flood season, the factory had to have someone monitor flood situation every night.  All foundations of factory buildings were raised, which increased total construction cost.  Work stoppage during flood and the maintenance after flood;  Mud cleaning and sterilizing for a week after flood Sources: Field visit and small group discussions.

Among the poor people in PPA, frequent flood is one important factor for causing such poverty. According to the estimate made by Cili Poverty Alleviation and Development Office, about 50 percent of rural poor in Chengguan Town were caused by 1998 flood. If there were no flood in those communities, the poverty incidence would be much lower. Such impact by the flood is reflected in the following aspects:

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

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

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

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

The proposed Cili Flood Control Subproject will benefit all people in PPA, which include urban and rural, male and female residents, industrial managers, staff of the enterprises and institutions, local government officials and small shop owners. Majority of project beneficiaries are ethnic minorities. The Project will produce social benefits for them in the flood-prone area by reducing the risks to personal safety, livelihood, and assets. For rural and urban residents, reducing of flood damages to their crop, houses and assets mean more savings and higher income in future. Community interviews strongly suggested that the residents forgo investment in higher income activities such as greenhouse, livestock production and house improvements for fear of the potential loss during floods. Frequent house reconstruction after flood drains their capacity to accumulate financial resources. Removal of the flood danger from the protected areas will create a safer environment for both urban and rural residents so that they could sleep better during the wet season, and worry less about the safety of their family members and security of their limited physical assets. The participation in the Project construction by unskilled labours will directly increase their cash income, which could help them build their savings and improve the poverty conditions. The poorer residents will benefit through increased security provided by the Project which will mitigate the floods and assist the local government financial capacity. Confidence that public infrastructure investment will be more secure will support more investment in these locations. The improved business environment will encourage urban development, during which both local communities and urban residents will significantly benefit. For business and enterprises, the improved flood protection mean the reduction of potential damages and interruptions caused by floods, which will result in higher profits for the companies, more wages for the employees and more tax revenues for local governments. For many state owned enterprises with large land areas, better protection will have more chance to attract outside investment, so jobs can become more secure and the business can expand, thus leading to more employment. In addition to economic benefit, group discussion among stakeholders also identified a range of non-economic benefits by the Project, which include: (1) a better urban environment along the river front with improved drainage and removed garbage; (2) improved transport and access for local residents; (3) created a safer environment for local residents, particularly for children and elderly; and (4) enhance non-farm employment capacity through participating in Project construction, and job skill trainings for affected communities. Even for those people outside the PPA, reduction of flood impacts in the county town mean less interruption of market activities, and less interruption of government programs and services, which are critical for most rural poor. The project itself is an ethnic minority people‟s development project because it will direct provide flood protection to the political, economic and commercial center of Cili County. According to the social and poverty assessment, there are 23,839 households and 63,747 persons, who will be direct beneficiaries of the proposed project. Among them, 31,597 persons or 50% are ethnic minorities, including 17,553 of them as Tujia, 8,426 of them as Bai and 2,226 of them as Miao nationalities.

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During the survey, small group discussions were held among men and women in the selected communities. Based on their own experience, different group individuals identified various benefits to be brought to the minorities, which is presented in Table 4-2.

Table 0-2: Positive Impacts Identified by Different Groups of Beneficiaries Groups interviewed Positive Impacts to be Brought by the Subproject Rural area  Prevent soil erosion Male group  Protect lives and houses from flood  Bring employment and other business opportunities  Improve environment  Promote local economy Rural area  Lives being secured; No interruption on the kid‟s schooling Female group  Enjoying the life by keeping flood way Urban area  Lives and assets could be protected Male group  Businesses could be run without fear  Better environment and better sanitation Urban area  House and other assets could be protected Female group  No need to worry about moving belongs during rainy seasons  Could sleep well during rainy season Small business persons  Reducing the threats on lives by floods  Business could remain open all the time.  Reduce economic loss caused by the flood  Have a better environment for business. Factory (Cili Construction  Reduce flood threat and Installation Company)  Improved infrastructure benefit enterprise development  Provide business opportunity to participate in project  Improve soil conservation and reduce pollution in the rivers Sources: Field visit and small group discussions. Based on discussions with various stakeholders, it seems that the following short term and long term economic impacts could be expected from the Project: Short term economic and development impact:  Employment during construction. Some 27,000 person-months of unskilled labor over 4 years will be employed with CNY 13.5 million of wages, and at least 40% of labors and CNY 5.4 million of wages will come from minority people.  Commercial activities during the construction. These will include groceries, provision of food and accommodation services.  Provision of construction materials. Contractors will only locally purchase the bulky and yet cheaper materials of stone and earth for civil works. This could enable some minority people, where the expressway crosses, to engage in excavation and transportation of stone sand earth.

Mid-term and long-term (after construction period) potential indirect economic impacts include:  Increased agricultural production and productivity through reducing flood damages and increasing farming input, such as building greenhouse vegetable, and making crop structure adjustment, as well as income skill training under both minority development and resettlement programs

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 Increased non-farm economic activities by providing safe business environment, non-farm skill training, and making capital available through land compensation and employment opportunities during construction  Flood work-related employment. The maintenance of completed dikes and facilities will employ some people to do regular maintenance, landscaping, cleaning, etc.  Increased employment through increasing real estate development and commercial activities along the river front. These potential impacts are expected to benefit men and women, urban and rural, Han and minorities in PPA. Social and Poverty Analysis showed that women were conscious of the safety of family members. Also, women in the immediate impact area (area along the construction site) will receive more benefits from providing catering services and other social services to the large number of workers during construction of dikes. The long-term trends for women are very favorable, such as improved female education, enhanced cultivation techniques, greater emphasis on livestock raising in poor areas, and increasing urban migration. The major poverty problem of Cili County is rural poverty. According to official account, there are 58,000 persons under the poverty line in rural areas, accounting for 41.7% of the total poverty population in Cili County. Among them, 21,000 persons are extremely poor with per capita income below CNY 627. Most of the poverty people are located mountainous regions with harsh natural conditions, and poor accessibility. Some of the rural poverty is caused by frequent flooding since part of Cili is located in one of heavy rainstorm areas in Hunan Province. However, since the project protected area covers mainly urban area, the majority of poverty persons in PPA are urban poor living below the minimum living safety line. There are only 1204 rural poor in PPA, accounting for 0.87% of total rural poor persons in Cili County. The main cause of rural poor in PPA is limited of farmland due to urban expansion, frequent flood and lack of non-farm employment opportunities. Most these rural poor in PPA are vulnerable people who lack of labor or disabled. For the Cili County, since rural poverty is relatively high, there is on-going poverty alleviation effort funded by both provincial governments. According to officials from Cili Poverty Alleviation Office, there were about CNY10 million poverty alleviation funds allocated to Cili County each year for poverty reduction efforts, with CNY 4 million as poverty reduction grant, CNY 6 million as work for food program. About 70 % of these funds were used for improving basic infrastructure, promoting economic development, and conducting technical training among key poverty villages. The funded activities include village roads, drinking water, school building repairs, irrigation facilities, as well as introduction of various cash crops and technical trainings on planting, animal husbandry, and non-farm skills. Because of such efforts, the poverty population has been reduced steadily in the past two decades. The extremely poor population – people who lack basic food and clothing was reduced by 280,000 persons between 1986 and 2004. The share of extreme poor people was reduced from 40.2% in 1986 to only 3.5% in 2004. Table 4-3 indicates such sharp decline during this period. Table 0-3: Change of Poverty Incidents in Cili between 1986 and 2004 Year Extreme Poor Percent of Total Rural Poverty Percent of Total Rural Population Rural Population 1986 301,000 n.a. 1993 243,000 40.2% n.a. 36,000 6.0% 161,000 2003 26.6%

21,000 3.5% 139,000 2004 23.3%

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For urban poor in Cili, including those urban poor in project protected area (PPA), the main approach of poverty reduction is to deliver Minimum Living Allowance (MLA) so that their average monthly income could reach urban minimum living safety line. The process of identifying those who are under the poverty line is increasing transparent. It begins with application by the poor people, reviewed by local communities and disclosed in public three times for comment before finally adopted by local civil affairs bureau. According to estimate by Cili Civil Affairs Bureau, for 2004, there are 7,100 persons in Cili County are provided with living allowance subsidy, with a total of Y4.38 million, averaging Y680 per person per year. Among the urban poor, losing regular jobs from state owned enterprises is one main factor. According to the statistics from the Cili Civil Affairs Bureau, 75% of the people, who live by the Minimum Living Allowance (MLA), come from the state-owned and collective-owned enterprises. In order to address such problem, measures like providing re-employment trainings and introducing jobs by local labor and social protection bureau. Meanwhile, local governments also take positive employment policies and provide various public service positions, such as road cleaning, security guards, traffic assistants, and so on. For those positions, more attentions are given to the aged unemployed workers with less education or skills. Other measures such as reducing education fee for their school age children are also adopted. The strength of poverty alleviation effort in China lies in its effective administrative structure and dedicated staff. It was reflected during the process of flood protection and disaster relief activities. When flood was coming, staffs from town and residential committee (village) were responsible to help those vulnerable peoples move to safer places, collect and distribute relief goods, and assist them throughout rehabilitation efforts. The construction of the proposed project will (1) effectively enhance the capacity of flood control by the local communities, and reduce the loss from the flood, so to promote the production and income of the poor; (2) provide employment opportunity for those with no specific skills, especially the poor during the construction; and (3) promote the development of the urban areas, increase opportunity of employment so to reduce the poverty population.

C. Potential Negative Impacts of Resettlement10

During the small group discussions held in the selected communities, the land acquisition, demolition of houses and relocation of population were considered the major negative impacts by the project (For details, see Table 4-4). According to the detailed impact survey, the construction of new dikes will acquire a total of 149.36mu land areas. About 33% are farmland. The remaining land areas are river bed, urban housing land, and unutilized urban land. Approximately 283.13mu of land will be occupied temporarily during construction, among which, 32% are farmland. The permanent land acquisition will affect 40 households and 135 individuals from 6 villages and 25 village groups in Lingyang Town. The temporary land occupation will involve 90.7 mu of farmland. Along with land acquisition, a total of 10,539 square meters of buildings would be demolished, including 8,623 m2 of urban residential structures and 1,916 m2 of non-residential structures. The demolition will cause relocation of 40 households and 135 individuals, and affect 5 small shops and 1 enterprise with 193 employees. Although the amount of land acquisition and demolition is not significant, for affected individuals and communities, the impact could be quite significant. For example, the land acquisition will result in a reduction of 0.00067ha of the cultivated land per villager affected, namely 2.08% of their existing cultivated land. On the other hand, most affected villagers are no longer relying on agriculture as their main source of income. According to the sample household survey, only 26% of income came from planting. Therefore, through farmland readjustment, investing in animal husbandry and greenhouse

10 This part is compiled based on the draft of Cili County Subproject Resettlement Plan – Appendix XX.

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vegetable, as well as other income generation activities, each affected person will be able to restore their income to their previous levels. Following the ADB requirements, draft resettlement plan has been prepared by PMO with assistance from the design institute. The proposed compensation standards are in line with the PRC Land Administration Law (1998) and the ADB‟s Policy on Involuntary Resettlement, particularly the Hunan Provincial Implementation Decree adopted in 2000, 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 CNY22,509 per mu for irrigated farmland; CNY15,498 per mu for dry land, CNY19,395 per mu for housing plot and CNY2,745 for waste land. For structures to be demolished, replacement value will be provided to the affected households based on compensation rates adopted in the local government, which range from CNY 280 – CNY 340 per square meter for brick-concrete structure, CNY 210 – 270 per square meter for brick-wood structure, and CNY 50 per square meter for simple structure. In terms of rehabilitation for house demolition, for affected urbanl households, they will be provided with two options. One is to provide with replacement housing in nearby location completed with infrastructure and modern facilities; the other is to provide with compensation. There will be no reduction in house compensation for depreciation, and people will be allowed to salvage materials from their old houses. For land loss farmers, the economic rehabilitation will be carried out with a combination of land readjustment, developing greenhouse vegetable and animal husbandry. Based on extensive consultation, detailed economic rehabilitation plans have been developed for all affected villages, which are included in the Resettlement Plan. The total cost of resettlement is estimated at CNY15.3 million. The HPWR and Cili PMO will ensure that the resettlement entitlements are provided to the people affected prior to the ground leveling and demolition commencement. Land compensation and resettlement subsidy will be paid to the affected village collectives. Housing compensation and compensation for young crops and other assets will be provided directly to people losing those assets. Compensation for infrastructure such as electrical and communication fixtures will be paid to the concerned government departments for restoration. However, since the draft RP has not yet been disclosed to the local communities and affected people, most people interviewed did not have clear idea about the potential land acquisition and resettlement impact to be brought by the Project. They express some concerns with regard to compensation policies and potential negative impacts. It seems that during next stage of resettlement planning more meaningful participation should be organized with affected communities and individuals, and more disclosure should be carried out in order to improve basic understanding of the resettlement preparation for the Project and address concerns raised by the project affected people. The project implementation will produce a certain impact on socio-economic factor: 1). Cili County is located in the project affected area with good infrastructure conditions, where the local farmers have a lot of opportunities in non-farm employment, such as daily labor and small business. Most those surplus labor forces have moved into the second and tertiary industry or individual business, gradually moving out of reliance in the land. According to the investigation, in the affected Lingyang Town, there were 12917 employed labor forces, including 2057 non-agricultural population of industry, building construction, traffic, wholesale and retail, accounting for 15.92% of the rural labor forces. Analysis from the incomes structure, in 2005, the annual total income per household of the affected households was RMB 7675 yuan, including RMB 1859 yuan for the agricultural incomes, only accounting for 24.2 % of the total income. The investigation shows that in spite of the land loss, the local farmers will suffer the decrease of agricultural incomes, however, due to the small proportion for plantation in the total incomes, they will have little impacts on their production and living. 2). For farmers with land plantation as their main livelihood resources, the land loss will result in the loss of complete or partial means of production, however, as the project is linearly distributed along the Lishui and Loushui River, the land acquisition of the project will result in insignificant influence on the agricultural production of resettlers, on average, each affected village will lose 2.08% of their land. For

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11 affected village group, all of them would lose about 10% of their existing land. However, for those households directly affected by land acquisition (111 households and 278 persons), every affected person will lose about 28.44% of their land holding. According to the on-spot investigation, the land acquisition will affect 11 villager groups, group 10 of Shuang‟an has the cultivated land occupied 15.2 mu at best and the quantity of land occupied in other groups is between 0.3mu and 8.3mu. Most affected farmers would have limited impacts due to land acquisition. For such impact, it is planned that local farmland adjustment will be adopted as basic rehabilitation strategy, which will not impact the traditional production mode and livelihood of the affected persons, and can restore, or even develop their living standard within short period of time; the cash compensation can be adopted, which will be paid directly to the affected farmers to be used to undertake other agricultural activities to create revenues (such as adjusting plantation structure and developing greenhouse vegetables) or other non-agricultural activities to create revenues (such as development of livestock breeding). These activities will increase their incomes and mitigate acquisition impacts so that their income and livelihood could be restored and improved after land acquisition. 3). For relocated households, the process of moving and decorating new houses will consume certain manpower and material resources for the affected households, which need to be considered by the project sponsors. The PMO will, according to the 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 will provide 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 will result in the loss of operation incomes for them. According to the investigation findings, there was 1 affected enterprise or institution, but its production and operation was not affected because the land acquisition there has been cancelled. The project construction will bring certain influence on the residents and businesses within the project area, but the impact is little and after completion of the project, it will create favorable conditions for further development of Cili County.

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Table 4-4 Basic Conditions of Affected Houses (Residential Communities) in Cili County Urban Flood Control Project Vulnerable Population（Person） Cultivated Land Area（mu） Ethnic Minority Remarks Village Income Group Township (Residenti Cultivated Per Land Per (Sub-dist al Agricultur Non-agric Commerc Capita Capita Number Number Perce rict) Communi al ultural Paddy Dry ial （ ） (yuan/yea Percenta ty) Total Total mu r) of of ntage Populatio Populatio Field Farmland Vegetable Persons ge (%) Persons (%) n n Plot

Lingyang 17612 11652 5960 7971.4 863 5476.1 1632.3 0.68 2368 4877 27.7 335 1.9

Shuang‟a 5100 2910 2190 1660 1330 330 0.57 2410 714 14.0 44 0.9 Ethnic minorities n mainly include Tujia.

Baiyun 1040 1040 335 75 260 2000 634 61.0 33 3.2 Ethnic minorities mainly include Tujia.

Beigang 1613 1613 1039 253 786 0.64 1713 526 32.6 29 1.8 Ethnic minorities mainly include Tujia..

Taiping 2608 2018 590 1334.9 1152.6 182.3 0.66 1546 868 33.3 65 2.5 Ethnic minorities mainly include Tujia.

Jintai 880 810 70 550 100 450 0.68 1827 108 12.3 67 7.6 Ethnic minorities mainly include Tujia.

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Yong‟an 2703 2418 285 1272 70 102 1100 0.53 2750 358 13.2 21 0.8 Ethnic minorities mainly include Tujia. High-quali ty seed 2100 315 1785 541.5 541.5 1.72 1610 728 34.7 51 2.4 Ethnic minorities garden mainly include Tujia. Ethnic minorities Lingxi 1568 1568 1239 365 854 20 0.8 2068 941 60 25 1.6 mainly include Tujia.

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D. Expectations and Concerns Between March and April of 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. 52 households within the affected area of the project were selected as the sample, accounting for 81.25% of the total affected households. The samples are representative and typical, and can be used for basis for the project impact analysis. For the detailed sample survey distribution of removed households, see Table 4-5.

Table 4-5 Analysis of the Sampling Investigation on the Affected Households due to the Project Resettlement Township Number of Total Affected Sampling Sampling （Sub-district） Affected Villages Households Households Percentage（%） Remarks Total 8 40 33 82.5 Lingyang Town 4 40 33 82.5 Shuang‟an 3 3 100 Village Beigang Village 8 7 87.5 Taiping Village 22 19 86.4 Yong‟an Village 7 4 57.1

2) Investigation on relocatees‟ willingness and attitudes Investigation on relocatees‟ willingness adopts the mode of sample survey with a sampling ratio of 58%. 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 19 survey forms issued to the relocatees, and 19 effective forms returned with an effective ratio of 100%. The sample survey and analysis shows that: ① Household Size of the affected households: 3.24 persons / family in average in the affected area of the project, including 2.24 persons for labor forces with age 17~60, 0.48 person of younger than 17 years old and 0.55 person of older than 60 years old. ② Gender Percentage: The male/female ratio in the project area is 1.12:1. ③ Age makeup: The labour forces at age of 17~60 possess 63.1% of the total population, 26.1% for younger than 17 years old and 10.8% for older than 60 years old. ④ Ethnic Background: The 41.5% of the affected people are classified as Han Nationality, and 58.5% as the minorities. ⑤ Educational level: In the affected area of the project, every 100 persons, there are 2 persons with educational level of higher than senior middle school, 33 persons with educational level of senior middle school, 35 persons with educational level of junior middle school, 18 persons with primary school and 11 illiteracies or

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half-illiteracies. ⑥ Housing area per capita: The housing area for every household is 207m2 and that per capita is 63.88m2. The structures of houses are mainly brick-concrete and brick wood structure. ⑦ The land contracted by the collective: In countryside, each household contracts 1.68mu of cultivated land, averaging 0.52mu per capita; The grain yield of each household is 1248kg in average 385kg per person. . ⑧ Family property: For every 100 households, there are 172 sets of TV (including black and white TV, 21 sets and Colour TV, 151 sets), 86 refrigerators, 107 washing machines, 72 fixed phones and 40 mobile phones. ⑨ Economic incomes and expenditure: Each household has an annual total income of RMB 7675 yuan, averaging RMB 2368 yuan per capita; Each household has an annual total expenditures of RMB 6302 yuan, the annual expenditure per capita is RMB 1324yuan; Each household has an annual net income of RMB 6505 yuan, averaging RMB 2038 yuan per capita.

For the total basic conditions of the affected households by the project, see Table 4-6.

Table 4-6 Summary for the Basic Conditions of Each Affected Household of Baojing County Urban Flood Control Project

Total of Samples (33 households) Minority Samples (24 households) Items Unit Indices per Total Indices per Indices Total per household household I Affected household size

1.Total Population of Household person 107 3.24 80 3.33 Including: female person 51 1.55 39 1.63 2.Labor forces of 17~60 years old person 74 2.24 55 2.29 3.Population younger than 17 person 16 0.48 12 0.50 4.Population older than 60 person 18 0.55 13 0.54 II Educational level

1.More than senior high school person 2 0.06 1 0.04

2.Senior high school person 41 1.24 31 1.29

3.Junior high school person 35 1.06 27 1.13 4.Primary school person 18 0.55 13 0.54 5.Non-educated person 11 0.33 8 0.33 III Nationalities

1.Han person 43 1.16 16 0.67 2. Ethnic Minority person 64 1.73 64 2.67 IV. Housing area

1.Housing area per household m2 14508 207 5160 215

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Table 4-6 Summary for the Basic Conditions of Each Affected Household of Baojing County Urban Flood Control Project

Total of Samples (33 Minority Samples (24 households) households) Items Unit Indices per Indices Indices per Total Total per household household 2.Housing area per capita m2 14508 63.88 5160 64.56 V. Agricultural production

1.Contracted plantation area per mu 67 1.68 household 41.8 1.74

2.Plantation area per capita mu/person 67 0.52 41.8 0.52

3.Grain yield kg 59488 1248 37078 1545 4.Grain occupation per capita kg/person 59488 385 37078 464 VI. Household property

1.TV set 45 1.36 34 1.42 Including: color TV set 25 0.76 19 0.79

2. Refrigerator set 17 0.52 13 0.54

3. Washing machine set 18 0.55 13 0.54 VII. Annual total income 253275 7675 189364 7890

1.Agricultural income yuan 61347 1859 45456 1894 2. Non-agricultural income yuan 191928 5816 143908 5996

VIII. Annual consumption yuan 187294 5062 expenditure 140033 5835

1.Living expenditure yuan 49654 1342 37124 1547

2.Production expenditure yuan 88060 2380 65839 2743 3.Other expenditures yuan 49580 1340 37069 1545 IX. Annual net household yuan 217965 6605 income 162964 6790

Through a series of public evaluation meeting, and after collecting ideas from impacted ethnic minority community, discussion and interviews, their general feeling to this project is positive, especially the convenience of transportation. They wish the basic infrastructures to be developed, such as medical clinics,

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primary and middle school, power, power supply, etc. These will be implemented according to the plan by Poverty Relief Office and Ethnic Affairs Bureau. They also express their requirements in accepting training in the aspect of agriculture such as economic crops and in providing income increasing opportunity such as peasant worker who engaging in flood control project, and small merchants along construction site.All the groups interviewed expressed their earnest desire to carry out the flood control project as soon as possible, and to build a wide embankment so to play multiple functions of the proposed project. The main comments and suggestions from the stakeholders include:  Building a wider and higher embankment open to traffic;  Commence the work as soon as possible;  For potential resettlement impacts, providing information early and adequate compensation as well as employment opportunities;  Providing employment opportunities during construction;  Providing credit for small business. During survey, the interviewed people made selection and sequence arrangement to rural and urban development requirements. The first five projects which are needed urgently are selected by them. Within the investigated groups, there are six groups to list this project as the most precedent project, and the others, in sequence, includes: providing more income generating opportunities, building roads for local people, providing credit, improving educational condition, lowering down the tuition, better medical care service etc.. For the investigation result, please see Table 4-7.

Table 0-7: Priority needs Perceived by from the Community Residential Committee/Village Gender 1 2 3 4 5 More income Better Better road Better sanitary Male Proposed project generating conditions facilities medical opportunities care service Better Shuang‟an education More income condition Better road Female Proposed project generating More credit conditions and opportunities lowering down the tuition Better education Providing More income Better road condition and non-farm Male Proposed project generating opportunities conditions lowering down technical the tuition training Longping Better education Better education Better Better medical condition and Female Proposed project condition and lowering care service lowering down sanitary down the tuition facilities the tuition Better education condition and Better public Better Proposed project Better road conditions medical lowering down safety care service Yong‟an Male the tuition

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Better More non-farm job Better road Female Proposed project chances conditions More credit medical care service

E. Poverty Reduction Measurement Rural poverty is the major poverty problem of Cili County. There are 52,004 persons under the poverty line, accounting for 7.55% of the total population of Cili County. Among them, 25,657 persons are extremely poor with per capita income below CNY 627. Most of the poverty people are located mountainous regions with limited farmland, harsh natural conditions, and poor accessibility. Some of the rural poverty is caused by frequent flooding since part of Shimen is located in one of heavy rainstorm areas in Hunan Province. However, since the project protected area covers mainly urban area, the majority of poverty persons in PPA are urban poor living below the minimum living safety line. There are only 1204 rural poor in PPA, accounting for 2.32% of total rural poor persons in Cili County. The main cause of rural poor in PPA is limited of farmland due to urban expansion, frequent flood and lack of non-farm employment opportunities. Most these rural poor in PPA are vulnerable people who lack of labor or disabled. For the Cili County, since rural poverty is relatively significant with10.5% and since it is one of provincial key poverty counties, there is on-going poverty alleviation effort funded by both central and provincial governments. Under the leadership of Shimen Poverty Alleviation Office, there were about CNY10 million poverty alleviation funds allocated to Cili County each year for poverty reduction efforts, with CNY 4.00 million as poverty reduction grant and CNY 6.00 million as work -relief program. About 70 % of these funds were used for improving basic infrastructure, promoting economic development, and conducting technical training among key poverty villages. The funded activities include village roads, drinking water, school building repairs, irrigation facilities, as well as introduction of various cash crops and technical trainings on planting, animal husbandry, and non-farm skills. Because of such efforts, the poverty population has been reduced steadily in the past 20 decades. The extremely poor population – people who lack basic food and clothing was reduced by 280,000 persons between 1986 and 2007. The share of extreme poor people was reduced from 40.2% in 1986 to only 3.5% in 2007. Table 0- indicates such sharp decline during this period. Table 0-8: Change of Poverty Incidents in Shimen between 1986 and 2007 Year Extreme Poor Percent of Total Rural Poverty Percent of Total Rural Population Rural Population

1986 301,000 n.a.

1993 243,000 40.20% n.a.

2003 36,000 6.00% 161,000 26.60%

2004 34,618 5.70% 148,795 24.50%

2005 32,735 5.40% 127,304 21.00%

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2006 30,893 5.10% 90,861 15.00%

2007 25657 4.24% 52004 8.60%

For urban poor in Shimen, including those urban poor in project protected area (PPA), the main approach of poverty reduction is to deliver Minimum Living Allowance (MLA) so that their average monthly income could reach urban minimum living safety line. The process of identifying those who are under the poverty line is increasing transparent. It begins with application by the poor people, reviewed by local communities and disclosed in public three times for comment before finally adopted by local civil affairs bureau. According to estimate by Shimen Civil Affairs Bureau, in 2007, there were 7,100 persons in Cili County are provided with living allowance subsidy, with a total of CNY 4.83 million, averaging Y680 per person per year. Among the urban poor, losing regular jobs from state owned enterprises is one main factor. Based on the statistics of Shimen Civil Affairs Bureau, 75% of persons who apply for the minium living guarantee were from the state-owned or collectively-owned enterprises. In order to address such problem, measures like providing re-employment trainings and various public service positions, such as road cleaning, security guards, traffic assistants, and so on. For those positions, more attentions are given to the aged unemployed workers with less education or skills. Other measures such as reducing education fee for their school age children are also adopted by relevant district agencies and implemented by officials from town government. The strength of poverty alleviation effort in China lies in its effective administrative structure and dedicated staff. It was reflected during the process of flood protection and disaster relief activities. When flood was coming, staffs from town and residential committee (village) were responsible to help those vulnerable peoples move to safer places, collect and distribute relief goods, and assist them throughout rehabilitation efforts. The construction of the proposed project will (1) effectively enhance the capacity of flood control by the local communities, and reduce the loss from the flood, so to promote the production and income of the poor; (2) provide employment opportunity for those with no specific skills, especially the poor during the construction; and (3) promote the development of the urban areas, increase opportunity of employment so to reduce the poverty population.

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V. ACTION PLAN

A. Specific Measures/Activities

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

 Measures to avoid or mitigate adverse impacts

 Measures to enhance positive impacts

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

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

1. Mitigation Measures

Construction-related Disturbances. The proposed flood control works and their related facilities will directly affect 12 minority villages in Chengguan Town. Some disturbances might occur during project implementation. The total minority population affected by construction noises and other hazards from these residential committees or villages will be about 25,000. The environmental impact assessment considers and addresses some, if not all of these potential health hazards identified. For instance, nighttime construction is prohibited thereby mitigating the issue of excessive noise for people living close to the expressway construction sites. The construction of crossings will address the concerns of road safety. The restoration of damaged irrigation and drainage systems will preserve surface water sources of local people from pollution caused by construction.

HIV/AIDS and STIs Awareness and Prevention. Although Cili County is not a high risk area for HIV/AIDS, in order to ensure that Cili will continue free of HIV/AIDS, county CDCs (Centre for Disease Control), in accordance with the PRC Law on Prevention and Treatment of Epidemic Disease, will take measures to prevent the spread of HIV/AIDS and other STIs. The project PMO and the contractors will support CDCs to take prevention measures for workers and local communities during construction and to transport operators and truck drivers during operation of project facilities such as establishment of health clinic at construction camps, HIV/AIDS and STIs prevention posters, HIV/AIDS and STIs education programs, and implementation of the international anti-AIDS programs.

Gender Equality. In order to ensure the fair distribution of the project benefit to the women, women‟s participation in terms of decision making will be secured in accordance with government laws and regulations during the implementation of Ethnic Minority Action Plan. The Women‟s Federation, which has a mandate to advocate women and children rights, and disseminate information of livelihoods improvement through newsletter and regular group meeting, will extend their activities in the project affected area as a part of their regular activities.

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Resettlement. Local governments will support the development of social infrastructure and local markets, and have incorporated those into local development plans. For new house construction, local customs, agricultural requirements and future development needs will be taken into consideration. House construction will be carried out according to the wishes of households so that the traditional housing styles will be preserved. A special fund will be used to provide necessary help for the vulnerable people when necessary. Vulnerable people include the elderly, disabled, household headed by women, extremely poor households, and monitory people. In addition, the people seriously affected by the land acquisition and resettlement of the Project will be offered training in agricultural techniques and non-agricultural skills according to their different situations in addition to land compensation and livelihood restoration provision. Those affected women (especially minority women) will be given priority in these training so that they can enhance skills and obtain better benefit opportunities by participating in non-agricultural activities. The resettlement organizations at all levels include staffs that are members of minority nationalities. Ethnic minorities and their representatives will be participating in resettlement, and such participation will run through the whole process of resettlement.

Table 0-1: Mitigation Actions Proposed Targets/Indicators Beneficiaries Budget (CNY 103) Timing Measures Protection of Prohibiting nighttime Including 25,000 minority To be included in EIA for 2006-2010 minority construction, people from 12 residential the proposed subproject. communities restoring damaged committees (villages). from irrigation and construction drainage systems disturbances: Control of Health clinics in Minority residents in PPA Included in the project 2006-2010 transmissible construction camps especially along the dike diseases HIV/AIDS and STIs alignment. Compulsory requirement prevention posters to contractors to take HIV/AIDS and STIs Over 2,000 construction action under the education programs workers supervision of county Implementation of CDCs (Center for the international Disease Control) anti-AID programs Zero case of HIV/AIDS in the project areas during the construction period Encourage Number of meetings Over 17,360 women from 12 Included in Government 2006-2010 women to Number of residential committees program participate in newsletters (villages). meetings and decisions

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Special Special assistance In 12 affected villages, the Included in Resettlement 2006-2007 support to to vulnerable vulnerable people account for Plan. resettlement people, including 4.9%. For total affected 100 Employment skill training affected keeping 1% of the households and 796 persons, is covered by both people total budget of there are at least 14 vulnerable Resettlement Plan and resettlement for people to be affected by the existing Government them resettlement. programs Options of rehabilitation for relocated households and respect to specific tradition Employment skill training by minority trainers

2. Enhancement Measures

Micro-Credit Program. Under the coordination of county poverty reduction offices, Cili Women Federation will provide micro-credit service to some 2,800 rural minority women in the 16 townships of Cili County during the project implementation period. Most of them will be minority women. The average size of the loan is CNY 1000. The loan would be used for the income generating activities. Repayment period ranges from 0.5 to 4 years with annual interest rate of 5-6%. The poverty reduction offices will cover 50% of the credit‟s interest charges.

Tourism Development. County governments and their tourism agencies will take the following promotion actions for tourism development:

 Exhibition of Tujia, Bai and Miao cultures and establishing tourism infrastructures, including building a ethnic minority plaza near current stadium along the river.  Preparation of tourism brochures and posters to distribute and display in the rest and parking areas and service stations of the expressway. They are also to be distributed in various tourism agents in cities.  Introduction of the tourism resources with access map on various websites.

Technical Advice and Training. As components of the resettlement plan for income recovery, county technical sectors (i.e., agricultural and forestry bureaus, labor and social security bureau) will provide special technical advices and training to the project affected farmers (men and women) on cash cropping, livestock management, and non-farm skills, as well as job introduction for migrant labors. Skill training will also be provided to enable minority people take employment opportunities from construction of flood control projects.

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Tax Incentives for Minority Families. To encourage local minority people to engage in secondary and tertiary activities, the local government will provide tax incentives and special policies, such as fixed base, increasing subsidy, and special assistance, waive agricultural tax, and provide priority for the minority households to get small loans.

Table 0-１: Enhancement Measures Proposed Measures Targets/Indicators Beneficiaries Budget Source Timing (CNY) Micro credit (mostly to Minority women in Cili County 2,800 minority 280,000 Cili Women 2006-2 rural women) women Federation 010

Tourism promotion Building ethnic minority plaza All minorities in the 5 – 6 million County 2006 county town, governments onward particularly small s businesses Advice on agricultural affected minority people in 8 1000 minority Covered by County 2006 techniques and project villages population local governments onwards no-farm skills programs

Tax incentives Tax benefits for new small Over 38,200 County 2006 business, tax exemption for minority people Government onwards agricultural activities from 12 residential committees (villages).

3. Project Benefit Measures

Employment Measures. It is suggested to take the employment of local minority people as unskilled labors for the construction of the expressway as a potential contract item between Cili PMO and contractors. The contract will specify that contractors should employ at minimum, 75% of local unskilled labors. Full wages will be paid to local people employed for the construction of the flood control components. On-the-job training will be provided for workers and special attention will be paid to the illiterate workers by PMO and contractors.

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Table 0 -２: Project Benefit Measures Proposed Actions Targets/Indicators Beneficiaries Budget (103CNY) Timing Over 27,000 person-months Employment of minorities unskilled labor, 40% are to as unskilled labors for be awarded to minority 108,000 minority Included in civil 2006-2009 construction of the flood population labors works contracts related works Contractors use 75% of local labors minimum Employment of minorities at 40 positions for hire, of Included in 30 minority 2010 maintenance and other which 40% would be project operating workers onwards associated activities minorities budget

B. Budget and Financing Sources

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

C. Implementation Arrangement

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

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

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

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

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E. Grievance Procedures

(1) Possible Complaint and Problem Solving Methods

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

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

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

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

(2) Appeal Channel and Procedure

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

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reflected; ─ The violation laws and discipline case relating to ethnic minorities' appeal can be accepted in the law departments such as administrative supervision, auditing, discipline inspection, judiciary and prosecutorial department. b) Appeal Procedure

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

F. Monitoring and Evaluation (M&E)

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

Prior to the implementation of project activities, the baseline survey which was participated by Li Yuntao, Ren Yu and Li Tiehui from Xinghuan Company has been carried out in July, 2008 and the survey covers ethnicity, poverty degree and people‟s livelihood. The subsequent monitoring and elevation on EMDP will use these baseline data to weigh the results and impacts brought by the project. When the project is completed, the implementation quality of measures in relation to EMDP will be measured through the evaluation so as to assess the impact of the project on ethnic minorities.

The monitoring and evaluation content of EMDP will include：

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

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

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

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

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

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projects.

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

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

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

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

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

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

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

The collection of data should be kept to a minimum and concentrate on data that is required for key indicators. The following list provides some broad evaluation indicators that are of greatest importance. Specific indicators related to the implementation of the EMDP are listed in previous Tables. Data collected shall be disaggregated by sex and by ethnic group whenever possible:

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

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

Cili PMO understands that ADB will play a leading role in formulating the M&E plan. Therefore, ADB will provide guidance to prepare a feasible M&E plan before project implementation. Cili PMO will

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coordinate its implementing agency and local government to assist the consultant team to carry out the M&E plan. The budget for monitoring and evaluation activities will be worked out once detail M&E plan is completed, which will be used for hiring the domestic PPMS specialist and domestic EMDP monitoring agency.

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