RP1391 v1 rev

Public Disclosure Authorized

The World Bank Funded Nanchang Rail Transit (NCRT) Line 2 Corridor from

Public Disclosure Authorized Hongjiaozhou Depot to Xinjiaan Station

Resettlement Action Plan

Public Disclosure Authorized

Public Disclosure Authorized

World Bank Funded NCRT Project Management Office March 21, 2013

Route Map of NCRT Line 2 Corridor Hongjiaozhou to Xinjiaan Project

Contents

1 PROJECT SUMMARY ...... 1 1.1 PROJECT INTRODUCTION ...... 1 1.2 THE AFFECTED AREA ...... 3 1.3 MEASURES TO REDUCE RESETTLEMENT ...... 4 1.3.1 Measures carried out during project design stage ...... 4 1.3.2 Measures carried out during project construction stage ...... 6 1.4 PROJECT OWNERSHIP ...... 7 1.5 PROJECT PREPARATION AND IMPLEMENTATION SCHEDULE ...... 8 1.6 LAND USE AND ACQUISITION PERMIT ...... 8 1.7 LAWS AND REGULATIONS CONCERNING COMPENSATION STANDARDS ...... 8 2 ANALYSIS ON THE PROJECT IMPACT ...... 10

2.1 DEFINITION OF PROJECT IMPACT ...... 10 2.2 CUT OFF DATE ...... 11 2.3 SURVEY ON THE PROJECT IMPACT ...... 11 2.4 OVERVIEW OF PROJECT IMPACT ...... 13 2.5 LAND OCCUPATION ...... 17 2.6 PRIVATE HOUSES TO BE DEMOLISHED ...... 17 2.7 AFFECTED ENTERPRISES AND INSTITUTES ...... 18 2.8 AFFECTED SHOPS ...... 19 2.9 AFFECTED VULNERABLE GROUPS ...... 20 2.10 UNLICENSED BUILDINGS ...... 21 3 SOCIO-ECONOMIC IMPACT OF THIS PROJECT ...... 22

3.1 AFFECTED AREA AND ITS SOCIO-ECONOMIC DEVELOPMENT ...... 22 3.2 BASIC INFORMATION ABOUT AFFECTED VILLAGES ...... 22 3.3 BASIC INFORMATION ABOUT AFFECTED HOUSEHOLDS ...... 23 3.4 IMPACT ON MINORITY GROUPS ...... 25 3.5 IMPACT ON WOMEN ...... 25 4 LAWS, REGULATIONS AND POLICIES ...... 26

4.1 MAJOR LAWS, REGULATIONS AND POLICIES FOR RESETTLEMENT WORK ...... 26 4.1.1 Relevant laws and regulations issued by the central government ...... 26 4.1.2 Regulations and policies issued by the Ministry of Land and Resources and the People’s Government of Jiangxi Province ...... 26 4.1.3 Regulations and policies issued by Nanchang municipal government and relevant departments ...... 27 4.1.4 Involuntary resettlement policies of the World Bank ...... 28 4.2 EXTRACTS FROM MAJOR LAWS, REGULATIONS AND POLICIES ...... 28 4.2.1 Extracts from relevant laws and regulations of the state and Jiangxi Province ...... 28 4.2.2 Extracts from the regulations of Nanchang City ...... 32 4.2.3 Involuntary resettlement policies of the World Bank ...... 35 4.2.4 Analyses of the gaps between domestic and the World Bank’s policies ...... 37 4.3 RESETTLEMENT POLICIES APPLICABLE TO THIS PROJECT ...... 39 4.3.1 Policy for acquisition of collective land ...... 39 4.3.2 Policy for expropriation of houses on collective land ...... 40 4.3.3 Policy for acquisition of state-owned land ...... 42 4.3.4 Policy for expropriation of houses on state-owned land ...... 42 4.3.5 Identification and compensation for unlicensed buildings ...... 47 4.3.6 Special supporting measures for vulnerable groups ...... 48 5 RESETTLEMENT COMPENSATION RATES ...... 49

5.1 COMPENSATION RATE FOR TO-BE-ACQUIRED COLLECTIVE LAND ...... 49

5.2 COMPENSATION RATE FOR DEMOLISHED HOUSES ON COLLECTIVE LAND ...... 50 5.3 COMPENSATION RATE FOR DEMOLISHED HOUSES ON STATE-OWNED LAND ...... 54 5.4 COMPENSATION RATE FOR DEMOLISHED HOUSES ON STATE-OWNED LAND ...... 54 6 IMPLEMENTATION PLAN FOR RESETTLEMENT AND REHABILITATION ...... 57

6.1 OBJECTIVE AND PRINCIPLE OF RESETTLEMENT AND REHABILITATION ...... 57 6.1.1 Objective ...... 57 6.1.2 Principle ...... 57 6.2 RESETTLEMENT OF RELOCATED HOUSEHOLDS ...... 58 6.2.1 Resettlement of relocated households affected by acquisition of collective-owned land ...... 58 6.2.2Resettlement of relocated households affected by acquisition of state-owned land ...... 62 6.3 RESETTLEMENT OF DISPLACED PEOPLE AFFECTED BY LAND ACQUISITION ...... 66 6.3.1 Compensation for acquired land ...... 66 6.3.2 Social security program for land lost people ...... 69 6.4 RESETTLEMENT OF AFFECTED SHOPS, ENTERPRISES AND UNITS ...... 70 6.5 RESETTLEMENT OF AFFECTED VULNERABLE POPULATION ...... 76 6.6 SCHEDULE OF RESETTLEMENT AND REHABILITATION ...... 77 7 BUDGET AND MANAGEMENT OF RESETTLEMENT FUNDS ...... 79

7.1 COMPOSITION OF RESETTLEMENT FUNDS ...... 79 7.1.1 Compensation fee for land acquisition ...... 79 7.1.2 Compensation fund for house demolition ...... 79 7.1.3 Compensation fee for all kinds of attachments...... 79 7.1.4 Other expenses related to resettlement ...... 79 7.1.5 Administrative expenses for resettlement ...... 79 7.1.6 Unforeseeable expenses ...... 80 7.2 BUDGET OF RESETTLEMENT FUNDS ...... 80 7.3 RECEIVER AND DISTRIBUTION OF RESETTLEMENT FUNDS ...... 81 7.3.1 Receiver of resettlement fund ...... 81 7.3.2 Source and flow of resettlement funds ...... 82 7.4 APPROPRIATION, MANAGEMENT AND MONITORING OF RESETTLEMENT FUNDS ...... 82 7.4.1 Appropriation of resettlement fund ...... 82 7.4.2 Management and monitoring of resettlement funds ...... 82 8 RESETTLEMENT ORGANIZATIONS ...... 84

8.1 ORGANIZATION SETTING ...... 84 8.2 RESPONSIBILITY OF THE ORGANIZATIONS ...... 84 8.2.1 Nanchang Rail Transit Construction Headquarter ...... 84 8.2.2 Nanchang Rail Transit Project Management Office ...... 85 8.2.3 Expropriation and compensation office of various districts ...... 85 8.2.4 Resettlement offices in sub-districts (villages and towns, representative offices) ...... 86 8.2.5 Resettlement advisory agency ...... 86 8.3 STAFF AND FACILITIES OF EACH RESETTLEMENT ORGANIZATION ...... 86 8.4 MEASURES TO ENHANCE RESETTLEMENT ORGANIZATIONS’ CAPABILITY ...... 88 8.5 PLAN TO FURTHER ENHANCE RESETTLEMENT ORGANIZATIONS’ CAPABILITY ...... 89 9 PUBLIC PARTICIPATION AND CONSULTATION ...... 92

9.1 ACTIVITIES OF PUBLIC PARTICIPATION AND CONSULTATION THAT HAVE ALREADY BEEN CONDUCTED ...... 92 9.2 FEEDBACK TO THE OPINIONS COLLECTED THROUGH PUBLIC PARTICIPATION AND CONSULTATION ... 98 9.3 PLAN OF CONSULTATION WITH AFFECTED PEOPLE IN THE NEXT STAGE ...... 103 9.4 WAYS FOR THE AFFECTED PEOPLE TO PARTICIPATE IN CONSULTATION DURING IMPLEMENTING PHASE ...... 104 9.5 TRANSPARENCY OF RESETTLEMENT POLICIES AND THE RESETTLEMENT INFORMATION BOOKLET .. 105 10 GRIEVANCES AND APPEALS ...... 106

10.1 MEANS OF COLLECTING COMPLAINTS AND APPEALS ...... 106 10.2 COMPLAINT AND APPEALING PROCEDURE ...... 106

10.3 PRINCIPLES FOR HANDLING COMPLAINTS ...... 107 10.4 CONTENT AND MEANS OF REPLY TO COMPLAINTS ...... 108 10.4.1 Content of reply ...... 108 10.4.2 Means of reply ...... 108 10.5 RECORDS AND FEEDBACK OF COMPLAINTS AND APPEALS ...... 108 10.6 CONTACT INFORMATION FOR COMPLAINTS AND APPEALS ...... 109 11 RESETTLEMENT MONITORING ...... 110

11.1 INTERNAL MONITORING ...... 110 11.1.1 Purpose of internal monitoring ...... 110 11.1.2 Implementing process of internal monitoring ...... 110 11.1.3 Content of internal monitoring ...... 111 11.1.4 Internal monitoring methods ...... 112 11.1.5 Internal monitoring organizations and personnel arrangement ...... 115 11.1.6 The cycle of internal monitoring and report ...... 115 11.2 EXTERNAL MONITORING ...... 116 11.2.1 Purpose of external monitoring ...... 116 11.2.2 Independent monitoring organization and its staffs ...... 116 11.2.3 Responsibilities of independent monitoring organization ...... 116 11.2.4 Methods and steps of external monitoring ...... 117 11.2.5 Main content of external monitoring ...... 118 11.2.6 External monitoring report system ...... 120 12 ENTITLEMENT MATRIX ...... 121 APPENDIX 1 RESETTLEMENT INFORMATION BOOKLET ...... 133 ATTACHED TABLE 1 LIST OF AFFECTED STORES ...... 138 APPENDIX 2: DUE DILIGENCE REPORT ON THE RESETTLEMENT WORK FOR LAND ACQUISITION IN NANCHANG RAILWAY STATION AND BAYI SQUARE STATION OF NCRT LINE 2 PHASE I PROJECT ...... 145

1 Project Summary 1.1 Project Introduction World Bank Funded NCRT Line 2 Project starts from Zhanqiannandadao Station and ends at Xinjiaan Station, 23.3km long from west to east, all underground, including 21 stations (of which 6 transfer stations), average distance between stations: about 1.11km (see Route Map). This route goes through many passenger gathering and dispersing sites, including Nanchangxi Railway Station, Honggutan Center Area, Yangming Road, Bayi Square, Nanchang Railway Station, center of southern urban area etc. , and it connects the core areas of the old and the new urban districts, covering the most important areas on south-north corridor between the old urban district in south and the new urban district in north. Hongguzhou vehicle depot for Line 2 is established 0.48km away in west of Zhanqiannandadao station. The total length of the corridor is 23.78 km. Table 1-1 Setting of Stations in Line 2 Phase I Project No. Station Distance to next station Transfer to/from other lines 1 Zhanqiannandadao 550 2 Nanchangxi Railway Station 550 Transfer to/from Line 4 3 Longgang 1600 4 Guotizhongxin 1170 5 Wolongshan 1300 6 Lingbeisanlu 1430 7 Qianhudadao 859 8 Xuefudadaodong 1601 Transfer to/from Line 5 9 Cuiyuanlu 1384.2 10 Ditiedasha 982.8 Transfer to/from Line 1 11 Yayuanlu 1173 12 Hongguzhongdadao 1845.5 13 Yangminggongyuan 1771.5 Transfer to/from Line 3 14 Qingshanlukou 603 15 Fuzhoulu 793.74 16 Bayiguangchang 706.26 Transfer to/from Line 1 17 Yongshulu 835 18 Dinggonglunan 995

1 19 Nanchang Railway Station 680 20 Hongduzhongdadao 1380 Transfer to/from Line 4 21 Xinjiaan Among the 21 stations and the vehicle depots covered by this project, all stations are arranged along the existing roads. In Honggutan new district in west of Ganjiang River, no buildings need to be demolished due to the enough space offered during prior road construction, except for one house on Yayuan Road; while the stations in the old urban district in east of Ganjiang River all need to demolish certain existing buildings on both sides of roads. Table 1-2 Land Acquisition and House Demolition Involved in Stations and Vehicle Depots of Line 2 Phase I Project State-owned Collectively-owned No. Station Demolished buildings land used land requisitioned 1 Zhanqiannandadao √ √ 2 Nanchangxi Railway Station √

3 Longgang √ 4 Guotizhongxin √ 5 Wolongshan √ 6 Lingbeisanlu √ 7 Qianhudadao √ 8 Xuefudadaodong √ 9 Cuiyuanlu √ 10 Ditiedasha √ 11 Yayuanlu √ √ 12 Hongguzhongdadao √ 13 Yangminggongyuan √ √ 14 Qingshanlukou √ √ 15 Fuzhoulu √ √ 16 Bayiguangchang √ 17 Yongshulu √ √ 18 Dinggonglunan √ √ 19 Nanchang Railway Station √ 20 Hongduzhongdadao √ √ 21 Xinjiaan √ √ √

2 22 Hongjiaozhou vehicle depot √ √ The project will connect with Line 1 under construction and Line 3, 4 and 5 to be constructed, but this project has its own vehicle depot and therefore can exert its function independently. Moreover, the construction of Line 1, 3, 4 and 5 brings no significant impact on Line 2 and will be implemented by stages, so Line 1, 3, 4 and 5 are not associated projects of the Bank financed project. This Resettlement Action Plan is prepared by NCRT Project Management Office in accordance with the involuntary resettlement policy of World Bank and relevant laws and regulations of China. The Plan aims at the land acquisition and house demolition involved in stations, property development, interval routes, and enclosures in construction and traffic relief measures in Line 2 Phase I Project. A Resettlement Policy Framework for the land acquisition and house demolition caused by the public transit integration that haven’t been fully determined and the potential adjustments in future was also prepared according to WB’s policy. All related resettlement practices, no matter they will be conducted before or after the project effectiveness, are required to be in line with the requirements of the prepared RAP/RPF, and will be monitored.

1.2 The Affected Area The affected area of the project concentrates in Nanchang city. The area affected by the line includes four administrative districts, namely Honggutan New District, Donghu District, Xihu District and Qingshanhu District from west to east. See table 1-3 for the distribution of stations and depot in these districts. Table 1-3 Distribution of Stations and Deposits of the project No. Administrative district Stations and depots Honggutan New District Vehicle depot, stations: Zhanqiannandadao, Nanchangxi Railway Station, Longgang, Guotizhongxin, Wolongshan, Lingbeisanlu, 1 Qianhudadao, Xuefudadaodong, Cuiyuanlu, Ditiedasha, Yayuanlu, Hongguzhongdadao 2 Donghu District Yangminggongyuan, Qingshanlukou, Fuzhoulu 3 Xihu District Bayiguangchang, Yongshulu, Dinggonglunan 4 Qingshanhu District Nanchang Railway Station, Hongduzhongdadao, Xinjiaan

3 1.3 Measures to Reduce Resettlement The resettlement work has been regarded as one of the top priorities during both the planning and implementation stage by the project Management Office. All necessary measures have been carried out to minimize the resettlement in this project while comprehensively considering the construction cost, social impact and environmental impact. 1.3.1 Measures carried out during project design stage During project design and planning stage, in order to decrease the social and economical impacts brought by the construction of this project, the project Management Office organized several joint meetings with the design and consultation institutions to discuss about the optimization of project design and the minimization of social and economical impacts of resettlement. During communication and consultation process, Guangzhou Metro Design & Research Institute Co., Ltd. as the design unit, the Environmental Protection Center of Ministry of Transport in charge of environmental impact assessment, the Center for Involuntary Resettlement Research of Wuhan University in charge of resettlement consultation and the experts from the joint research team in charge of public participation and opinion collection expressed advices and suggestions for project optimization from different perspectives. The project Management Office finally considered these advices comprehensively to obtain the most optimized project plan. Seven basic principles were defined during design stage of Line 2. 1. The trend of the line complies with Urban Master Planning of Nanchang, Urban Rapid Rail Transit Network Planing of Nanchang and Urban Rapid Rail Transit Construction Planning of Nanchang (2009-2016). The route of the line shall be selected with reasonableness in combination with urban construction planning and the line shall fully exert its function as backbone of transportation. 2. The route shall go along the trunk road of the city and shall be arranged inside the specified boundary lines of roads, and the route at stations shall be parallel to the specified road boundary line as possible. Except for the consideration of station location and construction methodology, the demolition and the interference to ground transportation shall be minimized and the construction of this project shall be most integrated with urban landscapes and properties along the line.

4 3. Laying mode of the route shall be selected through comprehensive comparison based on the requirements of location, geology, hydrology, environmental protection and landscape and by considering project investment, operation benefits, urban land utilization etc. 4. When the underground interval route between stations must go through aboveground structures or residential quarters, if conditions permit, the depth shall be properly increased to decrease vibration, noise and the interference to aboveground buildings. 5. The distribution of stations shall consider the main passenger gathering and dispersing sites and shall also coordinate with the overall urban transportation planning network to attract the most passengers and offer convenience for travels of passengers to embody the tenet of people foremost. 6. According to Urban Rapid Rail Transit Network Planing of Nanchang, some conditions for future route development shall be reserved and this route shall ensure the reasonable division of transportation task and the interconnection with the transportation modes of other cities. 7. In the area to be developed according to urban planning, the development may be centered on stations to promote the growth of passenger flows. By following these seven principles, we tried to decrease land acquisition, house demolition and resettlement as possible and also comprehensively considered the risks and benefits in engineering, economy and society during project design stage so as to realize the optimization of project design. Take Qingshanlukou Station as an example. This is a transfer station for Lines 2 and 3. Since it is located at the intersection of Yangming Road and Qingshan Road (bends), where the development of its surrounding area is mature with densely built buildings and therefore there are many conditions to control, thus the setting conditions of this station is very complicated. The design unit proposed three schemes. Scheme 1 is locating this station in west of the intersection and enabling Line 2 to turn to south to Bayi Avenue at R-300m radius. The station for Line 3 is also located in west of the intersection and passageway is set between the two stations for transfer between the two lines, so not convenient for line transfer. The connection of both lines is set at northwest quadrant. In this scheme, numbers of buildings in Yangming Jincheng neighborhood

5 must be dismantled. Scheme 2 is locating the stations of Lines 2 and 3 in the land area owned by the 28th Middle School at southwest of the intersection. Two stations form “L” structure, convenient for line transfer. The connection of both lines is set at east of both stations. In this scheme, some buildings 28th Middle School must be dismantled. Scheme 3 is locating the stations of Lines 2 and 3 in west of the intersection, with Line 2 going through the Medicine College and many buildings in east of Bayi Avenue and turning back to Fuzhou Road at R-300m radius. The connection of both lines is set at northwest quadrant. In this scheme, numbers of buildings in Yangming Jincheng neighborhood must be dismantled. Among the three schemes, as for scheme 1, route conditions are better, demolition area is 78,000m2 and line transfer through passageway is the most inconvenient; as for scheme 2, line transfer is convenient, route length is the shortest with medium conditions, risk is lower because it doesn’t need to go through the land in east of Bayi Avenue, with demolition area: 71,0002; as for scheme 3, line transfer is convenient, but route length is the longest with the worst conditions, and it needs to go through the land in east of Bayi Avenue, which has great influence on the development of this land. A large-scale residential quarter - “Zhongyang Chuntian” is now under development. And in this scheme, it needs to go through numbers of buildings, the estimated demolition area exceeds 75,0002, so there are significant risks in project construction and its future operation. Through the comparison as above, scheme 2 is selected for considering the convenience of line transfer, route conditions and engineering risk, also for the demolition area in this scheme is the smallest. If a new spoil ground is established for the construction of the tunnel of Line 2, it will cover an area of 300mu at least and expends more than CNY 15 million. Through discussion with the project Management Office, the design unit took into full consideration the possibility of disposition of spoil when selecting the location of vehicle depot and deciding the design scheme. The current Honggutan vehicle depot covers the land acquisition of over 600mu, with both functions as depot and also spoil ground. In such case, land acquisition is reduced by 300mu and the cost is saved by CNY 17 million. 1.3.2 Measures carried out during project construction stage During project construction stage, the project Management Office will carry out

6 the following measures to eliminate the inconveniences to the affected people: ● Prepare construction plan and traffic organization design with reasonableness to minimize the influences brought by project construction to surrounding environment and traffic order. For the construction that needs enclosures, reasonably design and organize the construction to make the enclosure area as small as possible and fully consider various factors to finish the excavation and backfilling in the shortest time. When the construction involves roads with heavy traffic, it’s required to evade the peak hours. Barbarous construction is prohibited, the existing pipelines shall not be damaged and necessary warning board, warning light and guidance signs shall be set for convenience of vehicle and person traffic. Clean up the site and recover the traffic timely after the construction is finished. ● The waste soils excavated during construction shall be transported out timely. Overload is not allowed during transportation of waste soils and proper measures shall be taken to prevent the spilling on the way. The wheels of the transportation vehicle shall be cleaned with high pressure water before departure to decrease the soils scattered along the road that may influence the environmental cleanness. Meanwhile, the roads in front of the gate of construction site shall be kept clean. If there is waste soil scattered on it, clean away immediately. ● In the area 200m or shorter distance from residences, construction is not allowed from 10:00 at night to 8:00 at next morning and the construction unit shall give priority to low noise machinery when selecting construction equipments and methods. For night construction that affects the life of surrounding residents, proper measures shall be taken to eliminate or control the noise generated by the construction machinery and temporary sound barriers shall be erected around the construction site or residents concentration area to ensure the quality of acoustic environment in residential areas. ● The construction unit shall timely contact the local environmental sanitation organ to remove the domestic wastes in construction site and ensure the site clean and tidy. 1.4 Project Ownership The owner of this project is World Bank Funded NCRT Project Management Office.

7 1.5 Project Preparation and Implementation Schedule See Table 1-4 for the preparation and implementation schedule of the project . Table 1-4 Preparation and Implementation Schedule of This Project Item Schedule Approval of Feasibility Report November 2012 Approval of project appraisal January 2013 Completion of preliminary design January 2013 Design of construction drawings June 2013 Project implementation July 2013-December 2016

1.6 Land Use and Acquisition Permit See Table 1-5 for the schedule for land use and acquisition permit. Tab.1-5 Schedule for Land Use and Acquisition Permit Item Schedule Approved by National Development and Project approval and initiation 2012 11 Reform Committee Pre-trial of construction land 2012 4 State Council Resettlement Action Plan 2013 1 (predicted) Nanchang municipal government

1.7 Laws and Regulations Concerning Compensation Standards Based on thorough and careful investigation, this Resettlement Action Plan is prepared by World Bank Funded NCRT Project Management Office after full consultation with the Land House Expropriation and Compensation Offices, sub-district offices, villages (communities) and households in the affected area in Nanchang City, and all the resettlement policies have been approved by relevant government departments of Nanchang City. After this Resettlement Action Plan is approved by the World Bank and the People’s Government of Nanchang City, all the policies and standards included in this plan will be strictly followed during the implementation stage. The People’s Government of Nanchang City makes the following commitment that, all the policies and standards included in this Resettlement Action Plan will comply with the involuntary resettlement policy of the World Bank, conform to the relevant

8 regulations of the People’s Republic of China and Jiangxi Province, and consistent with the relevant local policies and standards in Nanchang City.

9 2 Analysis on the project Impact 2.1 Definition of Project Impact In this project, the affected area according to the field investigation is the actual land area for NCRT the project determined by the project planning and design unit. The project impact is defined as follows: (1) Permanently to-be-acquired land: all types of cultivated land and non-cultivated land that are within the land area of this project and need to be permanently acquired. The cultivated land includes paddy fields and dry fields; non-cultivated land mainly includes forest land, garden plot, water surface, wasteland and land for construction. (2) Temporarily to-be-acquired land: all types of land that need to be temporarily acquired during project construction period and will be recovered after the construction. (3) Demolished building: all the buildings within the land area of this project, mainly including frame structure housing, brick-concrete housing, wood-brick housing and simple houses. (4) Attachments to the land: attachments to the land within the land area of this project, mainly including fence, well, fruit trees and cement floor. (5) Affected public utilities: public utilities and public facilities within the affected area of this project. (6) Affected households: households whose land, housing or attachments to the land are within the land area of this project or the directly affected area of this project. (7) Affected community: communities of which the land, building or attachments to the land are within the land area of this project or the directly affected area of this project. (8) Affected firms, organizations and shops: the enterprises, organizations and shops of which the land, building or attachments to the land are within the land area of this project or the directly affected area of this project. (9) Affected population: family members of affected families and personnel of affected enterprises and public institutions. (10) Affected labor force: labor engaged in agricultural production on the expropriated land. (11) Vulnerable groups: vulnerable and disadvantaged groups due to lack of social

10 security, disability and poverty, etc. Vulnerable groups mainly include the following types of people: lonely elderly people, single-mother families, orphans, families receiving the minimum living allowances and disabled people, etc. 2.2 Cut off Date On August 19, 2012, Nanchang municipal government held the work arrangement Meeting for information publication and investigation, attended by the project Management Office and the staff from all affected districts, sub-districts (towns) and communities (villages) along Line 2. At the meeting, the information relating to construction of Line 2 is published and August 20, 2012 is decided as the cut off date for the impact of land acquisition and demolition of this project. Such information is made public among all the staff throughout the affected area. 2.3 Survey on the project impact During late August to early September 2012, according to the design drawings provided by the project design unit - Guangzhou Metro Design & Research Institute Co., Ltd., the project Management Office organized a resettlement survey on the affected area of project construction, joined by the staff from the Center for Involuntary Resettlement Research of Wuhan University and from the Land House Expropriation and Compensation Offices, sub-district offices and villages (communities) in the affected area along Line 2 Phase I project. The resettlement survey consists of three major parts: 1. Literature survey a. Social and economic statistical data in the project area and Nanchang City. b. Local laws, regulations and policies related to resettlement of the state, Jiangxi Province and Nanchang City, and the resettlement policies for similar projects in Nanchang City in recent years. 2. Survey on social and economic data a. Basic information about the affected families and vulnerable families in the affected area; b. Public opinions and suggestions; c. Basic information about the affected villages: population, labor force, industrial structure and cultivated land, etc. 3. Survey on land acquisition and house demolition

11 a. Land acquisition: location, type of land and land area; b. Demolished buildings and other attachments to the land: location, type, quantity and ownership; c. Type and quantity of public utilities; d. Conditions about the affected enterprises, organizations and shops.

Figure 2-1 Field Survey

Figure 2-2 Survey on Affected Families During resettlement survey, the project Management Office has comprehensively gathered the basic information about all the affected families. And, as required by the involuntary resettlement policy of World Bank, the questionnaire survey has been conducted among over 10% of the affected families by sampling method and the overall information about the basic members, property status, economic activities, incomes and

12 expenditures, resettlement intent etc. of totally 124 affected families. As for the affected enterprises, organizations and shops, their resettlement intents and opinions were solicited while the affected physical property was registered. Moreover, public engagement programs have been launched in every affected community or village by the resettlement offices of all levels to solicit the opinions and suggestions of the affected population on resettlement work. Meanwhile, this survey has also collected statistical data on social and economic development of the affected area in recent years, local policies and regulations concerning land acquisition and house demolition in the affected area, and resettlement policies of key construction projects in Nanchang City in recent years. The survey staff has also investigated into the relocated families in the project to know about their understandings about the policies concerning compensation and resettlement in Nanchang City, collect the information about the resettlement and compensation policies in similar projects in recent years and solicit their opinions and suggestions on resettlement and compensation for land acquisition and house demolition in metro project. Such in-depth investigation and research has provided sufficient data for the compilation of Resettlement Action Plan. 2.4 Overview of Project Impact Affected area by land acquisition and house demolition in this project: According to the data collected in resettlement survey, the land acquisition and house demolition in the project involves four administrative districts: Donghu, Xihu, Qingshanhu and Honggutan. It involves 11 towns/townships and sub-districts and 17 communities and villages. See Table 2-1 for the details about the land acquisition and house demolition involved in all stations and vehicle depot. Table 2-1 Distribution of Land Acquisition and House Demolition Involved the project District Station Sub-district Community/Village Donghu Fuzhoulu Dayuan Guangbei Community District Yangminggongyuan Dunzitang Majiachi Yuzhang Hongcheng Qingshanlukou Dunzitang Dangjiagang, Urban Bus Parents Committee Yuzhang Hongcheng, Sijing Road Qingshanhu Xinjiaan Hufang Town Hufang village District Hongduzhongdadao Shanghai Road Hongduzhong Community, Railway Parents Commitee

13 Xihu Yongshulu Dinggong Changyun Parents Committee District Road Shengjinta Yongshu Road Dinggonglunan Nanzhan Guangchangnan Road, Zhanqian Road Community, Railway Parents Commitee Honggutan Vehicle depot Shengmi Dongcheng District Jiulonghu Yuangang, Fuxiang Yayuanlu Shajing Kaixuan

Land acquisition permanently: The land to be occupied permanently in the whole project reaches 745.99mu, of which 133.45mu is state-owned land and 612.54mu collective. All the state-owned land to be acquired is construction purpose land. The collectively-owned land to be acquired involves four village-level administrative units and 31 households and 142 persons in Hufang Village, Dongcheng Village, Yuangang Management Station and Fuxiang Village. In details, the land to be acquired from Hufang Village is construction purpose land; the land to be acquired from Dongcheng Village is 383.47mu, of which 153.39mu is paddy field and dry field, with 21 families to be affected, totally 93 persons; the land to be acquired from Yuangang Management Station is 221.13mu, of which 105.84mu is paddy field and dry field, with 10 families to be affected, totally 49 persons; and the land to be acquired from Fuxiang Village is 5.45, all of which is construction purpose land and unused wasteland. According household economics survey, no household’s contracted farm will be acquired wholiy, the highest ratio of acquired land is 50%, and the lowest is 10%, and the income impact of farmland acquisition for the households is less than 15%. Land used temporarily : The land to be occupied temporarily during project construction reaches 1261.1mu. All are state-owned land for construction purpose, and mainly used for land enclosure on existing roads for convenience of construction. After construction is finished, the occupied land will be recovered. House demolition: The demolition area involved by all stations and the vehicle depot in the project is 168340.98m2, of which 81099.43 m2 is owned by 22 enterprises and organizations

14 and 83817.22m2 is owned by 1043 private families, with affected population: 4001 persons. In this project, 201 shops are to be demolished, with building area of 18410.74m2, and 858 persons working at the these shops will be affected. What shall be noted is that among the 201 shops, totally 18410.74m2, 138 shops with building area of 14986.41m2 have been included in the affected enterprises and organizations who rent them out. The independent shops to be affected add up to 63, with building area of 3424.33 m2.

15 Table 2-2 Overview of Land Acquisition and House Demolition Involved the project

Shops to be relocated Land Enterprises and Families to be acqusi organizations to relocated Subproject tion be relocated 2 Numb Num m Number of mu HH m2 m2 er ber employees State-owned land Nanchangxi Railway 6.45 Station Longgang 7.40 Guotizhongxin 6.11 Wolongshan 7.87 Lingbeisanlu 5.48 Qianhudadao 6.52 Xuefudadaodong 4.35 Cuiyuanlu 6.24 Ditiedasha 10.07 Yayuanlu 6.38 48 4934.4 Hongguzhongdadao 6.19

Yangminggongyuan 4.70 51 4609.65 2 492.29 4 250.1 13

Qingshanlukou 7.32 575 36416.32 6 15141 41 6601.63 188

Fuzhoulu 3.65 2 1114.25 5 710.12 24 Bayiguangchang 8.35

Yongshulu 5.61 1 24577.5 11 1251.84 65

Dinggonglunan 6.63 20 1460 3 5718.05 65 2243.81 260 Nanchang Railway 6.21 Station Hongduzhongdadao 4.54 298 21960.85 3 10415 32 1206 127

Xinjiaan 0.4 4 10170.12 43 1166.02 138 Collective land Zhanqiannandadao 5.45 30 8466

Xinjiaan 2.49 1 4981.22 20 4981.22 43 Vehicle depot 604.6 21 5970

Total 745.99 1043 83817.22 22 81099.43 201 18410.74 858

Affected families and population In the project , the families to be affected only by land acquisition amount to 21, covering 93 persons and the families to be affected only by house demolition amount to 1033, covering 3952 persons, and the families to be affected by both land acquisition and house demolition amount to 10, covering 49 persons. So the total number of the families to be affected by land acquisition and house demolition is 1064, covering 4094 persons.

16 2.5 Land Occupation The land to be occupied permanently by NCRT the project totals up to 745.99mu, of which 133.45mu is state-owned land, mainly the land for roads, landscape and construction purpose. The construction of Honggutan vehicle depot, Zhanqiannandadao Station and Xinjiaan Station requires to acquire 612.54mu collectively-owned land, among which, Xinjiaan Station needs to acquire 2.49mu construction purpose land from Hufang Village, the vehicle depot needs to acquire 383.47mu from Dongcheng Village, Shengmi Town and 221.13mu from Yuangang Management Station, Jiulonghu Sub-district., and Zhanqiannandadao Station needs to acquire 5.45mu construction purpose land from Fuxiang Village. See Table 2-3 for the details about the collectively-owned land acquisition. Table 2-3 Collectively-Owned Land to Be Occupied by The project (Mu) Land for Village Paddy field Dry field Forest land Total construction Dongcheng Village 38.35 115.04 230.08 0.00 383.47 Yuangang Management Station 22.11 83.73 110.57 4.72 221.13 Hufang Village 0.00 0.00 0.00 2.49 2.49 Fuxiang Village 0 0 0 5.45 5.45 Total 60.46 198.77 340.65 12.66 612.54

2.6 Private Houses to Be Demolished According to the resettlement survey, the private houses to be demolished in NCRT The project total up to 1043 households, with building area: 83817.22m2 and affected household population: 4001 persons. See Table 2-4 for details. Table 2-4 Private Houses to Be Demolished in the Project Station No. of Population Frame Brick & Brick & Total households structure concrete wood State-owned land Qingshanlukou 575 2198 34498.32 1918 36416.32 Yangminggongyuan 51 194 4609.65 4609.65 Hongduzhongdadao 298 1142 21960.85 21960.85 Dinggonglunan 20 75 1460 1460 Yayuanlu 48 193 4934.4 4934.4 Collective land

17 Zhanqiannandadao 30 120 6366 2100 8466 Vehicle depot 21 79 5500 470 5970 Total 1043 4001 4934.4 74394.82 4488 83817.22

2.7 Affected enterprises and institutes The demolition in the project involves 22 enterprises and institutes, with building area of 81099.43m2, and 195 employee.According to field investigation, the buildings on both sides of street are mainly rented out for doing business or as offices. Among all the 22 enterprises and institutes, the most affected are Long Distance Transportation Corporation and Nanchang No.28 Middle School, which have to be relocated entirely. Other enterprises and institutes receive small impact. See Table 2-5 for details on the impacts received by enterprises and institutes. Table 2-5 Enterprises Involved in House Demolition in The project (m2) No. Enterprise Frame Brick & Brick & Impacts Affected structure concrete wood empolyee 1 Nanchang Institute of 1177.58 Shop at fencing wall 0 Aviation Industry 2 Armed Police First 306.16 139.38 Shop at fencing wall 0 Detachment 3 Nanchang Xinshiji Roadside buildings 20 Hospital (Ninth rented from Ninth Construction Construction Company Company) 1917.6 4 Nanchang Bedclothes 6629.4 Roadside buildings 30 Plant (Hualian rented by Hualian from Supermarket) 0 Bedclothes Plant 5 4981.22 Roadside buildings 0 owned by village Hufang Village 0 collectively 6 Nanfang Bayi 2656 Out of business, with 0 Switches Plant idle buildings 7 Hongzhong 25 One office room of the 5 Community at community Shanghai Road Sub-district 8 Nanchang Ouya Auto 7734 Business site rented by 10 Sales Ouya Auto Sales Company from Bayi Switches Plant 9 Construction Bank of 428.89 Bank office 0 China, at 2 Yuzhang Road 10 63.4 One auxiliary gate 0 Hongdu Hotel house

18 11 Revolutionary 729.92 Shop at fencing wall 0 Martyrs Memorial Hall 12 Municipal Federation 384.33 Shop at fencing wall 0 of Trade Unions 13 Wushi Duyichu 1215 Roadside shop rented 23 (Municipal Timbers by Duyichu Company) 14 Jiangchai Warehouse 168 One idle warehouse 0 15 Handcraft Industry 3054 Office room rented 0 Association from Light Industry Bureau 16 Yongsheng Capitals 1740 Office room rented 5 from Light Industry Bureau 17 Canteen of Nanchang 380 1600 Bungalow used as 0 Education College canteen 18 No. 28 Middle School 8490 6984 Teaching and office 134 building 19 Jiangxi Long 24577.5 Bus station at Yongshu 0 Distance Road Transportation Corporation 20 Jiangxi Province 895.35 Roadside shop 0 Cereals and Oils Company 21 Provincial Geological 1593.75 Roadside shop 0 Exploration and Development Bureau 22 Nanchang Tielu No. 1 3228.95 One non-teaching 0 Middle School building and roadside shop Total 19625.34 54156.04 7318.05 199 2.8 Affected shops In NCRT Line 2 Phase I Project, 201 shops are to be demolished, with building area of 18410.74m2, and 858 persons working at the these shops will be affected. Among the 201 shops, totally 18410.74m2, 138 shops with building area of 14986.41m2 are under ownership of different enterprises and organizations. The independent shops to be affected add up to only 63, with building area of 3424.33 m2. Among the 201shops to be affected, 20 shops located on collective land at Xinjiaan station, which belongs to Hufang village, others are on state-owned land. See Table 2-6 for the information about the shops to be demolished during the construction of all stations. See Appendix I for details about the 201 shops to be demolished. Table 2-6 Information about the Shops to Be Demolished in Line 2 Phase I Project Station Number of shops to be Building area (m2) Number of

19 demolished employees Xinjiaan 43 6147.24 181 Hongdudadao 32 1206 127 Qingshanlukou 41 6601.63 188 Fuzhoulu 5 710.12 24 Yangminggongyuan 4 250.1 13 Yongshulu 11 1251.84 65 Dinggongnanlu 65 2243.81 260 Total 201 18410.74 858 2.9 Affected vulnerable groups Vulnerable group refers to the group of people who are the most vulnerable and incapable of adapting to the impact of the project in the affected population. Vulnerable group mainly includes the following types of persons: ● Elderly person of no family: the elderly people who are over 65, single, without legal dependents. ● Single-parent family: the householder is single and has minor child. ● The families enjoying the minimum living allowance determined by civil affairs department. ● Disabled people: those people whose psychological or physiological structure has lost the normal functions, completely or partly lost the ability to engage in normal activities. ●Families with other difficulties According to the information supplied by the communities in the affected area, it’s finally confirmed that there are 18 vulnerable families, totally 42 persons among the affected population. All of them are affected by house demolition. Table 2-7 Vulnerable Families among Affected Population in Line 2 Phase I Project No. Householder Description Number of members 1 Hu Huaxiu Poor family, with level-2 disability on legs 3 With level-3 mental disability, enjoying 2 3 Wu Meihua minimum living allowance 3 Chen Nianhong Enjoying minimum living allowance 2 A martyr’s family, enjoying minimum 4 1 Hu Shuangnan living allowance

20 5 Fu Huogen Enjoying minimum living allowance 2 Mentally retarded , enjoying minimum 6 2 Xu Bin living allowance 7 Zhang Pingping Disabled 2 Became disabled in traffic accident and lost 8 3 Li Dongsheng labor capacity Mental disabled, enjoying minimum living 9 3 Li Guojin allowance Poor family, enjoying minimum living 10 2 Li Xue allowance Suffer from mental disease and 11 3 Wan Yuqin hyperthyroidism and has no labor capacity Suffer from leukemia, be blind and have no 12 2 Xiong Xiaogang job 13 Ma Lusheng Enjoying minimum living allowance 3 14 Chen Meigen Enjoying minimum living allowance 2 15 Sun Huihu Enjoying minimum living allowance 2 16 Yuan Xiaoping Enjoying minimum living allowance 3 17 Deng Yaqun Enjoying minimum living allowance 2 18 Li Caiying Enjoying minimum living allowance 2 Total 42 2.10 Unlicensed Buildings

No unlicensed buildings are found in the affected area in resettlement survey.

21 3 Socio-Economic Impact of This Project 3.1 Affected Area and Its Socio-Economic Development Nanchang is the center of politics, economy, culture, science and technology and traffic of Jiangxi Province, a megalopolis at middle and lower reaches of Yangtze River and also an important comprehensive traffic hub and modern manufacture base. It covers an area of 7402.36km2 totally, of which the built-up area reaches 302km2. The total household population at the end of 2011 amounted to 5.0495 million. In 2011, the gross regional product (GRP) of Nanchang City was CNY 268.887 billion with GRP per capita: CNY 53,023 and the general financial revenue was CNY 41.119 billion, including general budget revenue: CNY 18.703 billion. Among urban residents, per capita disposable income was CNY 20,741, per capita living expenditure was CNY 15,234 and the Engel coefficient was 35.1%, and at the end of 2011, the per capita floor space was 28.71m2. Among rural residents, per capita net income was CNY 8,484, per capita living expenditure was CNY 4,893 and Engel coefficient was 50.51% in 2011, and at the end of the year, the per capita using space was 49.21 m2. 3.2 Basic Information about Affected Villages NCRT The project is developed basically based on the mature urban layout. The areas it goes through mainly are towns and communities, and the acquisition of land collectively-owned by village and the demolition of some buildings are needed only in Honggutan vehicle depot and Xinjiaan Station at Qingshanhu District. Land acquisition and house demolition required for Honggutan vehicle depot and Zhanqiannandadao Station involves three village-level administrative units, namely Dongcheng Village of Shengmi Town, Yuangang Management Station under Jiulonghu Management Office and Fuxiang Village. And, land acquisition and house demolition required for Xinjiaan Station at Qingshanhu District involves one village, i.e. Hufang Village of Hufang Town. Hufang Village at Qingshanhu District locates at both sides of Shanghai Road, a prosperous and busy street. It administrates eight villager teams, with a population of 3521 and the total assets of CNY 1.35 billion. It is a typical “urban village” which has absolutely got rid of agricultural production mode and it has strong economy with developed industry and prosperous commerce. The village invested CNY 120 million

22 collectively and established Hufang Industry and Trade Center, which has 180,000m2 standard plant buildings and attracts more than ten thousand migrant workers. In recent years, this village invested CNY 45 million to build Shanghai Road to be a commercial street and it therefore has become the center of commerce, tourism and service in Eastern urban area of Nanchang city. Dongcheng Village of Shengmi Town located at Honggutan New District, originally under administration of Xinjian County, is a typical agricultural village far away from the built-up area. The village consists of 726 households, with a population of 3269. It covers a large area, including 2300mu paddy field, 2607mu dry field, 235mu vegetable field, 280mu orchard and nursery garden and 18006mu forest and wasteland. This village is accessible conveniently since it’s near Xinjian County town and Nanchang urban area. Attracted by nonagricultural industries in urban area and driven by the development of Honggutan New District, over 85% of totally 1829 labor force go outside for work or engage in nonagricultural production. Yuangang Management Station of Jiulonghu Management Office located at Honggutan New District has a population of 1238, including 253 households. Under its administration, there are 1077mu paddy field, 1356mu dry field, 62mu vegetable field, 163mu ponds and 3380mu forest and wasteland. In recent years, 90% of the able-bodied persons are attracted by various nonagricultural jobs in the development area and some paddy field and dry field are out of cultivation due to the construction of Honggutan, especially nearby projects of Guotizhongxin Station and Nanchangxi Railway Station. 3.3 Basic information about affected households During resettlement survey, the sampling investigation has been conducted among the 124 affected families along the route, including 118 urban households and 6 agricultural households. We have obtained the basic information about the affected households through the analysis about family members, property, economic activities and other aspects. Table 3-2 Conditions of Demolished Houses of Affected Households Item Maximum Minimum Average Family size (number of members) 7 1 4.35 Living space (m2) 310 46 82.10 Time length since it is built (year) 32 5 23.05

23 Distance to bus stop (m) 3000 10 165 Distance to the nearest market (m) 600 150 235 Distance to the nearest hospital (m) 1000 200 655 Distance to the nearest middle/primary 1500 100 550 school (m) According to this investigation, the average size of family is 4.53 members and per capita living space is 18.87m2. All residential houses in urban area use brick-concrete structure. Most houses are the type of concentrated complex and have been used for long time since built, for example, Tiebacun complex in Hongzhong Community near to Hongduzhongdadao Station has been built for 22 years and the Urban Bus Company Complex at Qingshanlukou Station has been built for 28 years. On average, the distance from the demolished houses to the nearest bus stop is 10m, the distance to the nearest market is 150m, the distance to the nearest hospital is 655m, and that to the nearest middle/primary school is 100m. It can be seen from these figures that these families live at mature communities, and although the houses have small building area and long history, there is great convenience for life with various service facilities. Table 3-3 Financial Conditions of the Families Involved in Land Acquisition Item Maximum Minimum Average Family size (number of members) 7 3 5.31 Living space (m2) 310 240 288 Labor force (number of persons) 4 1 2.45 2011 per capita income (￥) 23560 4580 15430 Per capita arable land (mu) 4.0 1.5 2.3 Percentage of nonagricultural part in 100 50 85.60 total family income(%)

According to the investigation carried out among the affected households of Yuangang Management Station, over 85% of the incomes of the families involved in collectively-owned land acquisition are generated from nonagricultural activities. The impact of land acquisition to the incomes of these families is not large. We know from the information collected in the investigation that for the cropland included in the land to be acquired from Dongcheng Village and Yuangang Management Station, the gross income is generally about 4000 Yuan/mu/year and the net income is about 2000

24 Yuan/mu/year with labor input not considered, while they can earn 100-180 Yuan per day in nonagricultural production in nearby area, that is, 2500-4000 Yuan per month, almost twice the income of cropland per mu per year. So these villagers are not so interested in agricultural production. On contrast, most of them are attracted by the development of Honggutan and Nanchang City and join in nonagricultural production in nearby places, which causes some cropland out of cultivation. Some villagers engage in nonagricultural production during 90% of their time and only come back in sowing season to grow small quantity of crops for their own use. 3.4 Impact on minority groups According to the census data provided by Nanchang Statistical Bureau, the resident population of Nanchang City was 5042565 totally in 2011, including 5022563 Han people, accounting for 99.60% and 20002 ethnic minority people, accounting for 0.40%. The entire city covers 38 ethnicities and the ethnic minority people are scattered across the city. And there seems no significant difference between Han people and ethnic minority people in terms of customs, social and economic activities. Land acquisition and house demolition in this project involve no such complex that has concentrated ethnic minority people and cause no impact to their daily life and production. So this project has no impact on minority groups.

3.5 Impact on Women Nanchang is the capital city of Jiangxi Province. With the fast economic development and the dramatic increase of social vehicles in recent years, one of the most prominent problems in the daily life of urban residents is the inconvenient traffic caused by frequent traffic jams due to lack of passages across the river. The congestion of public traffic and the weakness of the infrastructure such as non-motor lane and sidewalk bring serious travelling difficulty to the women and the aged who mainly depend on public transit, electric bicycle and walking. Line 2 to be constructed, as well as Line 1 that has been constructed earlier, will form the public transit service network connecting the southern central urban area of the city with the fast developed northern new area, and therefore will be greatly helpful to the daily travelling of the residents, especially the women and the aged to improve their life quality. During this RAP preparation, women’s voice and concerns were collected

25 and their recommendations were incorporated in the RAP. 4 Laws, Regulations and Policies

The resettlement work involved in NCRT The project will strictly follow the relevant laws, regulations and policies of the People’s Republic of China, Jiangxi Province and Nanchang City. Meanwhile, the planning and implementation of resettlement work will fully comply with involuntary resettlement policies of the World Bank. 4.1 Major laws, regulations and policies for resettlement work 4.1.1 Relevant laws and regulations issued by the central government ●The Land Administration Law of the People's Republic of China, coming into force in January 1999 and revised on August 28, 2004; ●Decision on Deepening the Reform and Enhancing the Land Management, issued by the State Council on October 21, 2004; ●Notice on Relevant Issues on Further Strengthening the Land Control, issued by the State Council on August 31, 2006; ●Real Right Law of the People's Republic of China, coming into force on October 1, 2007; ●Regulations of the People’s Republic of China on Open Government Information, coming into force on May 1, 2008; ●Regulation of the State Council on Deepening Reform and Strengthening Land Administration, File No. 28 in 2006; ●Regulation on the Expropriation of Buildings on State-owned Land and Compensation, coming into force on January 21, 2011; ●Assessment Method for the Expropriation of Buildings on State-owned Land, coming into force on June 3, 2011. 4.1.2 Regulations and policies issued by the Ministry of Land and Resources and the People’s Government of Jiangxi Province ●Administrative Methods for Land Acquisition of Jiangxi Province (December 22, 2001; ●Implementation Methods for Administration of Urban House Demolition of Jiangxi Province, coming into force in August 2003 and revised in July 2009;

26 ●Guiding Opinions on Improving Compensation System for Land Acquisition issued by the Ministry of Land and Resources (November 3, 2004); ●Notice on Announcing New Standard of Unified Annual Output Value and Integrated Land Price for Expropriated Land in Jiangxi Province issued by the People’s Government of Jiangxi Province (December 6, 2010); ●Notice on Further Strengthening Management on Rural Housing Site and Protecting the Lawful Rights of Peasants issued by the Ministry of Land and Resources (March 2, 2010); ●Notice of the Ministry of Land and Resources on Furthering Strengthening Management on Land Acquisition (June 26, 2010).

4.1.3 Regulations and policies issued by Nanchang municipal government and relevant departments ●Guiding Opinions on Expropriation of Buildings on Collectively-owned Land and Compensation at Central Urban Area of Nanchang City (for Trial Implementation) issued by General Office of the People’s Government of Nanchang City, coming into force on October 10, 2012; ●Notice on Further Strengthening House Appropriation and Compensation Work in Nanchang City issued by the People’s Government of Nanchang City, coming into force on January 4, 2012; ●Notice of the General Office of People’s Government of Nanchang City on Properly Handling Historical Problems in Urban House Demolition, coming into force on April 5, 2006; ●Several Opinions of Nanchang City on Implementing the Regulation of the State Council on the Expropriation of Buildings on State-owned Land and Compensation, issued by the People’s Government of Nanchang City coming into force on June 3, 2011; ●Opinions on Further Clarifying the Charges for Allocated Use Right of State-owned Construction Land in Urban Area of Nanchang City, issued by the People’s Government of Nanchang City, coming into force on May 10, 2012; ●Notice of the General Office of the People’s Government of Nanchang City on Issues concerning Formulating Monetary Compensation Standard for Urban House

27 Demolition, coming into force on December 1, 2009; ●Notice of the General Office of the People’s Government of Nanchang City on Issues concerning Adjusting the Compensation Standard for Demolished Farmers’ Houses in Urban Planning Area, coming into force on December 1, 2009; ●Notice on Adjusting Replacement Price of the Houses Used for Compensation and Resettlement for House Demolition in Nanchang City, issued by Nanchang Bureau of Commodity Prices, coming into force on December 1, 2009; ●Notice on Implementing the “Six House Demolition Administration Systems of Nanchang City”, issued by Nanchang Real Estate Management Office, coming into force on May 19, 2004. 4.1.4 Involuntary resettlement policies of the World Bank ●World Bank operational policy OP4.12 Involuntary Resettlement and appendixes, coming into force on January 1, 2002; ●World Bank business procedure BP4.12 Involuntary Resettlement and appendixes, coming into force on January 1, 2002. 4.2 Extracts from major laws, regulations and policies 4.2.1 Extracts from relevant laws and regulations of the state and Jiangxi Province 1. Regulations on land ownership and land use right ● The People's Republic of China resorts to a socialist public ownership of land, i.e. an ownership by the whole people and ownerships by collectives. Land in urban districts shall be owned by the State. Land in rural areas and suburban areas of cities excluding those belonging to the state prescribed by law belongs to peasants' collective ownership; house sites, land allotted for personal needs and hilly land allotted for private use belongs to peasants' collective ownership (Article 2 and 8 of The Land Administration Law of the People's Republic of China). ● In order to meet the demands of public interests, it is allowed to requisition lands owned collectively, premises owned by entities and individuals or other realties according to the statutory power limit and procedures. When requisitioning land owned collectively, it is required to, in accordance with law and in full amount, pay land compensation fees, resettlement subsidy, compensations for the attachments and green crops and other fees, arrange for social security fees for the farmers with land to-be-acquired, guarantee their livelihood and protect their lawful rights and interests.

28 When requisitioning the premises owned by entities and individuals or other realties, it is required to compensate for demolishment and relocation in accordance with law and protect the lawful rights and interests of the owners of the to-be-acquired realties; when requisitioning the individuals' residential houses, it is required to guarantee the housing conditions of the owners of the to-be-acquired houses (Article 42 of Real Right Law of the People's Republic of China). 2. Regulations on compensation standards for land acquisition ●New compensation standard for land acquisition consists of two parts, namely land compensation fee and resettlement subsidy, not including compensations for green crops and attachments to land or social security expense, the latter of which shall be offered separately and can’t be incorporated in new compensation standard. If they are included in new compensation standard, the land compensation fee and resettlement subsidy will be decreased and the compensation standard is lowered indirectly (Article 1 of Notice on Announcing New Standard of Unified Annual Output Value and Integrated Land Price for Expropriated Land in Jiangxi Province issued by the People’s Government of Jiangxi Province). 3. Regulations on resettlement of peasants with land requisitioned ● The people's governments at and above the county level should develop specific approaches to guarantee the long-term livelihood of peasants with land requisitioned. In the project with stable revenue, peasants can share the land use right of construction land in accordance with the law. Within the urban planning area, local government should incorporated the landless peasants due to land acquisition into the urban employment system, and establish social security system; beyond the urban planning area, when requisitioning the collective land of peasants, local governments should reserve necessary cultivated land or arrange jobs for peasants with land requisitioned within their administrative regions. Those landless peasants lacking in basic production and living conditions should be resettled in other places (Article 13 of Regulation of the State Council on Deepening Reform and Strengthening Land Administration). ●The Departments of Land and Resources at city and county levels should pay the compensation fees in time and in full amount according to the resettlement plan, directly give out the compensation fees to the peasants with land requisitioned, and avoid any misuse and misappropriation of resettlement fees (Article 3 of Notice of the Ministry of

29 Land and Resources on Furthering Strengthening Management on Land Acquisition).｡ 4. Regulation on information disclosure about land acquisition ● During land acquisition, the rural collective land ownership and land contractual right of the peasants should be guaranteed. Before submitting the land acquisition plan for approval, the purpose and location of land to be requisitioned, compensation rate and resettlement ways should be notified to peasants; the survey result of land to be requisitioned should be confirmed by relevant rural collective economic organization and peasants; the department of land and resources should organize a hearing according to relevant provisions when necessary. Relevant documents acknowledged by peasants with land requisitioned should be taken as the essential documents for approval of land acquisition. The coordination and dispute settlement mechanism for resettlement work shall be established and improved to safeguard the lawful rights of peasants with land requisitioned and project owner. The approved land acquisition plan shall be publicized expect for special circumstances (Article 14 of Regulation of the State Council on Deepening Reform and Strengthening Land Administration). 5. Regulations on house demolition and housing site management ●In principle, the suburban residences on the boundary of urban construction defined by the urban master plan shall not be compensated with scattered house sites, but rather encouraged to choose centralized resettlement in new houses. (Article 5 of Notice on Further Strengthening Management on Rural Housing Site and Protecting the Lawful Rights of Peasants issued by the Ministry of Land and Resources). ●The real estate appraisal agency shall be decided jointly by the owners of the expropriated houses through consultation in specified time limit. If failing to be decided in specified time limit, the decision shall be made through voting organized by the house expropriation department among the owners of the expropriated houses under the principle of the minority subordinate to the majority, or by drawing lots or other random methods. The valuation of the expropriated house shall take into consideration the factors that affect house value, such as location, purpose, construction structure, how long it has been used, building area and land occupation area, land use right etc. The appraisal agency shall provide preliminary appraisal results of individual houses to the house expropriation department as required by the letter or contract of entrustment for valuation of expropriated houses. The preliminary appraisal results of individual houses

30 shall contain the composition of the appraised object and its basic conditions and appraisal value, and shall be made public among the owners of the expropriated houses by the house expropriation department (Articles 4, 14 and 16 of Assessment Method for the Expropriation of Buildings on State-owned Land). ●The compensation to be provided to the owners of the expropriated houses by the municipal or county government who made the decision of expropriation includes: (I) Compensation for the value of the expropriated house; (II) Compensation for relocation and temporary accommodation resulting from house expropriation; (III) Compensation for the losses incurred from suspension of production and/or business resulting from house expropriation. The municipal or county government shall formulate proper measures to offer subsidy and rewards to the owners of the expropriated houses (Article 17 of Regulation on the Expropriation of Buildings on State-owned Land and Compensation). ●When private houses are expropriated, if the house owner conforms to the conditions for housing guarantee, the city or county government who decides house expropriation shall offer the house owner with housing guarantee preferentially. Specific measures shall be formulated by the province, autonomous region or municipality directly under the central government. The compensation for the value of the expropriated house shall not be lower than the market price of similar real estate on the date of announcement of the house expropriation decision and the value of the expropriated house shall be assessed and determined by the qualified real estate appraisal agency in accordance with the assessment methods for house expropriation. ● In case of any objection to the appraisal value of the expropriated house, the real estate appraisal agency can be required to conduct appraisal review. If objection still exists, the Committee of Experts for Real Estate Appraisal can be invited to conduct appraisal verification. The assessment methods for house expropriation will be issued by the competent authority of housing and urban-rural development of the State Council. And, during the formulation process, public opinions shall be solicited openly among the society (Articles 18-19 of Regulation on the Expropriation of Buildings on State-owned Land

31 and Compensation). ● The owners of the expropriated houses can choose from the two compensation methods, monetary compensation or house property right exchange. If the owner of the expropriated house chooses house property right exchange method, municipal or county government shall provide house for exchange and the difference of value between the expropriated house and the house provided for exchange shall be calculated and paid off properly. ●If relocation is involved due to house expropriation, the house expropriation department shall pay relocation allowances to the owner of the expropriated house; if house property right exchange method is selected, the house expropriation department shall offer temporary relocation allowances or transitional house to the owner of the expropriated house before the house provided for exchange is delivered (Articles 21-22 of Regulation on the Expropriation of Buildings on State-owned Land and Compensation). 4.2.2 Extracts from the regulations of Nanchang City ●The Municipal Housing Guarantee and Houses Administration Bureau is the house expropriation department of this city to take charge of the house expropriation and compensation work in this administrative municipality. The Housing Guarantee and Houses Administration Offices in all districts are the house expropriation departments of the districts to take charge of the house expropriation and compensation work in their respective jurisdictions. The municipal house expropriation department may entrust and allocate house expropriation and compensation work to the management committees of all development zones and new districts. The Municipal Urban House Demolition and Resettlement Office has been renamed Municipal Office for Expropriation of Buildings on State-owned Land and Compensation, serving as the working body of the municipal house expropriation department. All districts shall establish or designate the nonprofit institution which takes charge of the specific house expropriation and compensation work in their respective jurisdictions (Article 1 of Several Opinions of Nanchang City on Implementing the Regulation of the State Council on the Expropriation of Buildings on State-owned Land and Compensation). ●The compensation for house expropriation shall includes the compensation for the value of the expropriated house, the relocation and temporary accommodation and

32 the losses incurred from suspension of production and business resulting from house expropriation. When private houses are expropriated, if the owners of the private houses conform to the conditions for housing guarantee and apply for low-rent housing, public rental housing, economically affordable housing or price-capped housing, such owners of the expropriated houses shall be offered with houses for rent or sale preferentially and may not need to wait (Article 11-12 of Several Opinions of Nanchang City on Implementing the Regulation of the State Council on the Expropriation of Buildings on State-owned Land and Compensation). ●The compensation and resettlement for the identified residential houses built without license prior to 1985 (included) shall refer to the houses with ownership. ●The compensation and resettlement work for the identified residential houses built without license prior to 1985 shall be implemented by reference to the houses with ownership and based on the facts. When the construction time of the residential houses built without license can’t be determined and the owner only has this residence in the urban area of this city, the compensation and resettlement work shall be based on 36m2 if the building area of the house is smaller than 36m2; based on the actual area if it is larger than 36m2 but smaller than the standard per capita area of government-subsidized housing of this city; based on the standard per capita area of government-subsidized housing of this city if it is larger than 36m2 and also than the standard per capita area of government-subsidized housing of this city, and the part exceeding the compensation and resettlement area shall be supplied with monetary compensation according to the replacement price. When the construction time of the residential houses built without license is difficult to be determined but the owner has other houses, the working team will have measurements for the houses and offer suggestions by considering the current status of the house, and the executing department of house expropriation will handle it based on the suggestions. When the business area of nonresidential houses is not shown in house ownership certificate, if the house contains only one storey and is used for business purpose, the fitting room and toilets detached from the house that are necessary for business and service shall be included in the nonresidential business area and the working team shall offer suggestions for the confirmation of the business area based on field survey; the

33 confirmation of the business area of multistoried nonresidential houses shall be based on the suggestions provided by the working team through field survey. Monetary compensation is encouraged to promote house expropriation. In order to encourage the owners of the expropriated houses to select monetary compensation, allowances and rewards are offered according to the following criteria: (I) Allowance is offered in the amount of 20% of estimated market value of the expropriated house if the owner of the expropriated house chooses monetary compensation, signs the agreement before the deadline specified in house expropriation and compensation plan and has moved out from the house. The amount of allowance shall be 20% of estimated market value of one 36m2 house if the building area of the expropriated house is smaller than 36m2 and the owner has no other houses in this city. (II) If the owner of the expropriated house chooses monetary compensation and signs the house expropriation and compensation agreement in advance in the time limit specified in house expropriation and compensation plan, proper rewards may be offered according to the time of relocation in advance, with the maximum amount not exceeding 20% of estimated market value of the expropriated house. Detailed measures are given in the house expropriation and compensation plan. (III) The temporary relocation allowances for additional six months will be offered to the owners of the expropriated houses who choose monetary compensation (Article 3 of Notice on Further Strengthening Land Acquisition and Compensation Work in Nanchang City). ●Monetary compensation standard for the demolished residential houses: (I) For residential houses to be demolished, if the relocated household chooses monetary compensation, the amount of compensation shall be subject to its estimated market value; the relocated household who moves out in the time limit specified in the announcement will receive allowance in the amount of 20% of estimated market value; (II) If the relocated household is urban household that has enjoyed the minimum living allowance for two continuous years and the building area of the demolished house is smaller than 36m2, the compensation shall be subject to the estimated market value which is calculated based on 36m2 and allowance will be provided in the amount of 20% of the estimated market value based on the area of the demolished house if the

34 relocated household moves out in the time limit specified in the announcement; (III) If the relocated household moves out in the time limit specified in the announcement, the temporary relocation allowance for additional six months will be offered to the owner or lessee of the house. The temporary relocation allowance is calculated based on the building area of the demolished house; (IV) In accordance with the Notice of the Ministry of Finance and State Administration of Taxation about the Relevant Tax Policies on the Urban House Dismantlement and Resettlement (C.S. [2005] No. 45), the monetary compensation received by the relocated household shall be exempted from individual income tax; if the relocated household chooses to purchase new house, the part in the purchase price that is equivalent to the monetary compensation shall be exempted from deed tax (Article 1 of Notice of the General Office of the People’s Government of Nanchang City on Issues concerning Formulating Monetary Compensation Standard for Urban House Demolition). 4.2.3 Involuntary resettlement policies of the World Bank The operational policy and business procedure of the World Bank on involuntary resettlement (OP4.12 and BP4.12) has clearly specified the policies for involuntary resettlement. The main policies related to this project are as follows: ●Goal of resettlement policy 1. Explore all the feasible project design schemes, and avoid or minimize involuntary resettlement. 2. If the resettlement is unavoidable, the resettlement work shall be conceived and executed as sustainable development program, provided with sufficient investment fund, and ensure the relocated people can share the benefits brought by the project . Sincere consultations shall be conducted with relocated people to get them involved in the planning and execution of resettlement plan. ●Measures to achieve the goal 3. The resettlement plan or policy framework shall incorporate corresponding measures to ensure: (1) Relocated people are aware of their options and other rights concerning resettlement; (2) Consult with relocated people on the feasible alternatives at technical and

35 financial level, and provide them with options and these alternatives; (3) Make use of all the relocation cost to provide relocated people with prompt and effective compensation and offset the direct property loss caused by the project . 4. If the project involves relocation, the resettlement plan or policy framework shall incorporate corresponding measures to ensure: (1) Provide assistance to relocated people during the relocation process (e.g. relocation allowances); (2) Provide relocated people with housing or house site, or provide the site for agricultural production if required. The production potential, geographical advantage and other factors of the site for agricultural production shall be no worse than the favorable conditions at the original site. 5. If required to achieve the goal of the policy, the resettlement plan or policy framework shall also incorporate corresponding measures to ensure: (1) Reasonably estimate the transitional period after relocation according to the time that may need to restore the livelihood and living standard of relocated people, and provide support to relocated people during this transitional period; (2) Provide relocated people with development assistance, e.g. site preparation, credit service, training or job opportunities. ●Give special attention to the need of vulnerable groups among relocated people, especially those people under the poverty line or without land, elderly people, women and children, indigenous people and minority groups, or other relocated people that are not under the protection of national land compensation regulations. ●For those relocated people who used to make their living on the land, give priority to resettlement strategy on the land basis. These strategies may include resettlement on the public land or purchased private land. Whenever the alternative land is provided, the production potential, geographical advantage and other factors of the land shall be no worse than the favorable conditions of their original land. If the land has not been given priority to in the resettlement strategy, or the provided land may have adverse impact on the sustainability of the park or protection zone, or it is impossible to obtain adequate land at a proper price, it is required to provide both monetary compensation for land and other property loss and employment or self-employment programs. In case of insufficient land, the case shall be described and

36 recorded as required by the bank. ●Monetary compensation for property loss may apply to: (a) relocated people make their living on the land, but the requisitioned land is only a small part of their property damaged by the project , the rest of their property are financially independent; (b) relocated people can make use of active land, housing and labor markets, and ensure the sufficient supply of land and housing; or (c) relocated people do not make their living on the land. The monetary compensation shall substitute the cost in full amount on the local market, and compensate for land and other property loss. ●Resettlement information shall be provided to relocated people and their communities in time. Consult with them on the resettlement program, provide them with the opportunities to get involved in planning, implementing and monitoring resettlement process, and establish corresponding convenient appeal mechanism for these groups. ●Necessary infrastructure and public service shall be provided on the new resettlement site or main communities, so as to improve, restore or maintain the communication system and service level of the community. Alternative or similar resources shall be provided to compensate the loss of community resources. ●The new community model shall be established according to the choice of relocated people. The existing social and cultural system of relocated people shall be preserved as much as possible, and respect shall be shown to the opinions of relocated people on moving to the new community.

4.2.4 Analyses of the gaps between domestic and the World Bank’s policies

Since 1980s , with the progress of market-orientation reform and socio-economic development, China has made great progress in improving its policies in land acquisition and house demolition. In many aspects, such as setting up rational compensation rates for affected assets and acquired land, giving different resettlement methods for APs to choose, and developing mechanisms ensure the resettlement process transparency, domestic policies having become more and more consistent with the principles of the Bank’s . The practices of resettlement in World Bank funded projects in China have set up good examples and contributed a lot for the progress China had

37 made. Due to some specific reasons, there is still some gaps between domestic and the World Bank’s policies on resettlement. Table 4-1 show the main gaps. Table 4-1 Gaps between domestic and the World Bank’s policies Item Domestic Policies The World Bank’s Policies Avoid or reduce the occupancy of Ensure timely and effective completion involuntary resettlement, and ensure their Objective of construction project, and guarantee living standards will not be lowered after stability and harmony of society. the occupancy of involuntary resettlement. ●usually give monetary compensation for land acquisition as well as provide social security program and ●Prefer land for land resettlement employment help method for land based persons Compensation ●Adopt the monetary compensation ●The affected persons have the right to and mostly, and consider the in-kind select monetary resettlement and resettlement compensation in areas where in-kind resettlement. method conditions permit. ●The public could freely select the ●When the in-kind compensation could location of resettlement housing. be selected, usually the location and structure of resettlement housing has been determined. Adopt the same-region, same-structure Calculation of and same-purpose second-hand housing Estimate price by adopting the method of compensation transaction price as the compensation replacement cost, without regard to rate price for housing demolition and depreciation. relocation. Compensation for illegal No compensation Make compensation on replacement cost structure The public participation system is not Have a full set of complete and mature Public sound; the true-meaning public public participation implementation participation participation in only involved in part of measures; the public could participate in the project implementation. the whole process of the project. Include the internal monitoring conducted by the owner and the The owner and the resettlement resettlement implementation Monitoring implementation organization conduct organization relying on the internal arrangement monitoring relying on the internal management mechanism and the external management mechanism. monitoring conducted by the external independent monitoring organization. The public could raise grievance through multiple channels and methods including Grievance Set up the specific agency to accept the the community, sub-district office, mechanism public’s grievance. owner, external monitoring organization, etc. Considering the gaps above mentioned, PMO studied the Banks polices seriously, and wraps up good resettlement practices recent years in Nanchang, especially good

38 practices of Line I, then worked out pragmatic feasible resettlement polices which follows the Bank’s principles and meet the requirement of domestic laws and regulations.

4.3 Resettlement policies applicable to this project In accordance with the above state and local laws and regulations and the relevant policies of World Bank, based on the actual situation of the affected area of NCRT Line 2 Phase I Project, especially in reference to the resettlement policies of Line 1 Project that are being implemented in 2012, the project Management Office has formulated the following resettlement policy applicable to this project after full consultation with the affected population. 4.3.1 Policy for acquisition of collective land The standard of unified annual output value and integrated land price formulated by the People’s Government of Jiangxi Province shall be implemented for the collectively-owned land to be acquired in this project. The compensation standard for the collective land to be acquired in this project is described in details as follows. The price of the land to be acquired from Hufang Village of Hufang Town at Qingshanhu District is 148808 Yuan/mu, which is located in the city centre. The unified compensation for the land to be acquired from Yuangang Management Station at Honggutan New District, Fuxiang Village and Dongcheng Village is 57301 Yuan/mu. The compensation standard for green crops in the to-be-acquired cultivated land is as follows: 1002 Yuan/mu for paddy field and vegetable field, 671 Yuan/mu for dry field. Hundred percent of the land compensation fund shall be used for the recovery of livelihood and long-term development of the villagers involved in land acquisition. In details, thirty percent in cash shall be given directly to the household with land requisitioned; forty percent are invested as capitals by the households with land requisitioned in principle of voluntariness to establish village-based joint stock company to develop specialized market, logistics or other collective economy on the village’s industrial land and the villagers will get dividends according to the shares they hold; and

39 thirty percent is centrally utilized by the village, used for the collective welfare services of the village, such as community culture center, senior citizen activity center, fitness center, medical and health services center etc. The compensation fund for the attachments on land and the green crops shall belong to and be given directly to the owners.

The allocation of land compensation fund and resettlement allowance is under the supervision and audit of superior authorities. All the qualified rural population after land acquisition will be covered by social security program.

4.3.2 Policy for expropriation of houses on collective land Compensation and resettlement for demolition of the private houses on collective land in this project shall conform to the following policy: 1. The relocated households can choose from the two compensation methods, monetary compensation or house property right exchange. 2. Monetary compensation 1) If the building area of the demolished house is within the resettlement area control criteria (per capita building area not exceeding 50m2 and building area per household not exceeding 350m2 ), the compensation standard is 2310 Yuan/m2; 2) If the building area of the demolished house exceeds the resettlement area control criteria, the part equal to the control criteria shall be compensated at 2310 Yuan/m2 and the part exceeding the control criteria shall be compensated according to the current conditions and structure of the house, brick-wood structure: 920 Yuan/m2, brick-concrete structure: 1100 Yuan/m2, frame structure: 1200 Yuan/m2. 3) Monetary compensation is 240 Yuan/m2 for simple structure and 30 Yuan/m2 for shed structure. 3. House property right exchange When house property right exchange method is chosen, the District will build housings uniformly in the original community for the resettlement of the persons with houses demolished, with specific measures shown as follows: 1) The calculation and control of resettlement area shall meet with such standard: per capita building area not exceeding 50m2 and building area per household not

40 exceeding 350m2. The resettlement shall be subject to the principle of the area of resettlement house being closest to the area of the demolished house. 2) When the building area of the demolished house is within the resettlement area control criteria, the price difference for grade of structure shall be calculated for the part with equivalent area, 50 Yuan/m2 per grade. When the resettlement house is chosen in the principle of being closest to the area of the demolished house, if the actual resettlement area is larger than the area of the demolished house, the exceeding part shall be purchased by the relocated household at cost price (2310 Yuan/m2 for frame structure high-rise building, 2165 Yuan/m2 for frame structure sub-high rise building, 1920 Yuan/m2 for frame structure multistoried building). In principle, the choice of the resettlement house with area not closest to the area of the demolished house is not allowed. 3) When the building area of the demolished house is larger than the resettlement area control criteria, the exceeding part shall be compensated according to the current conditions and structure of the house, brick-wood structure: 920 Yuan/m2, brick-concrete structure: 1100 Yuan/m2, frame structure: 1200 Yuan /m2. 4) The number of persons contained in the relocated household shall be calculated according to the number of the immediate family members registered in the agricultural household register. The only child shall be considered as two persons. 5) The married member or the member who has reached the age to split from the household in compliance with the Marriage Law or other laws or regulations shall be resettled separately according to related policies after splitting of household, and the total actual resettlement area shall not exceed the total building area of the demolished houses. 6) Other compensation Relocation allowance: one-off payment of 500 Yuan per household, and 1000 Yuan per household for those who need a second moving for temporary resettlement. Temporary relocation allowance: 600 Yuan/month per household for 24 months in transition period. If the transition period exceeds 24 months, the allowance shall be doubled. But whatever, the temporary transition period can’t be longer than 24 months. Advance relocation allowance: allowance is provided to the relocated households who move in advance. “In advance” here means moving during the first two months of

41 the relocation period specified by the signed compensation agreement. The amount is 200 Yuan per household per day in advance (for 60 days at maximum). Decoration compensation: the amount is decided through consultation with the relocated household or through appraisal by a qualified real estate appraisal agency. Compensation to other house attachments: fencing wall: 50 Yuan/m, cable TV: 120 Yuan per household, fixed-line telephone: 128 Yuan per household, broadband removal: 200 Yuan per line, split type wall mounted air conditioner: 300 Yuan/set, split type floor standing air conditioner: 500 Yuan/set, electric and gas heater: 100 Yuan/set and solar heater: 400 Yuan/set. Resettlement for the nonresidential houses on collectively-owned land to be requisitioned shall be handled according to the monetary compensation method. 4.3.3 Policy for acquisition of state-owned land The acquisition of state-owned land in this project shall be paid and the price shall be subject to the provisions of the Opinions on Further Clarifying the Charges for Allocated Use Right of State-owned Construction Land in Urban Area of Nanchang City issued by the People’s Government of Nanchang City, on April 26, 2012 4.3.4 Policy for expropriation of houses on state-owned land The resettlement and recovery policy for the houses on the state-owned land to be acquired in this project can be briefly summarized as “two choices, two relocation points and two services”, i.e. monetary compensation and house property right exchange provided for the affected families’ choice, two relocation points built to provide houses for property right exchange and two services of “relocation action”. 1. Policy for expropriation of private residential houses on state-owned land 1) The owners of the expropriated houses can choose from the two compensation methods, monetary compensation or house property right exchange. 2) If the persons whose houses are expropriated choose monetary compensation, compensation for the value of the expropriated house shall be paid according to estimated market value. Real estate appraisal agency shall be chosen and determined by the persons whose house is expropriated through negotiation; if negotiation fails, it shall be determined by majority decision or random decision. 3) If the persons whose houses are expropriated choose property exchange method, resettlement work shall be carried out according to the building area of the expropriated

42 houses in the principles of “one resettlement house for one demolished house”, “appraisals for both demolished house and resettlement house”, “mutual payment of price difference” and “resettlement house with area closest to the area of the demolished house”. For the part with equivalent area, the principles of “appraisals for both demolished house and resettlement house” and “mutual payment of price difference” shall be followed. When the resettlement house is the house type with the area closest to the area of the demolished house, if the building area of resettlement house is larger than that of demolished house, the exceeding part shall be paid according to cost price; if the building area of resettlement house exceeds the area of the house type closest to the demolished house, the exceeding part shall be paid according to the estimated market value of the resettlement house. 4) For the relocated households who sign the compensation agreement and move out within the specified time limit, the earlier moving out and delivering the house, the more priority in selecting the resettlement houses. 5) Decoration compensation shall be confirmed by entrusting real estate appraisal agency. 6) Relocation allowance: if the building area of the expropriated house is below 100 m2, each household shall be paid 500 Yuan for each time of relocation; if over 100 m2, each household shall be paid 500 Yuan for each time of relocation and 3 Yuan per square meter for the excessive area. 7) Temporary relocation allowance: for choice of property right exchange, the allowance shall be paid as 13.5 Yuan/m2/month according to the building area within the regulated or agreed temporary resettlement period; if the total payment of one household is less than 600Yuan, the allowance shall be accounted as 600Yuan. Temporary resettlement period shall be 24 months at maximum; for choice of monetary compensation or property right exchange of ready housing, 6 months’ allowance as 13.5 Yuan per month per square meter of the building area of expropriated house shall be paid in one-off method. If the total payment of one household is less than 600Yuan, the allowance shall be accounted as 600Yuan. 8) Relocation rewards: (1) When the persons whose houses are expropriated choose monetary compensation, if signing the compensation agreement within the specified time limit and moving out and delivering the house on time, they shall be

43 compensated according to the estimated market value plus 20% as relocation rewards; (2) If signing the compensation agreement and finishing relocation within 60 days upon the release of relocation notice, compensation shall be paid according to the estimated market value plus 20% as relocation rewards; if signing the compensation agreement and finishing relocation within 61-120 days upon the release of relocation notice, compensation shall be paid according to the estimated market value plus 10% as relocation rewards; if signing the compensation agreement and finishing relocation within 121-180 days upon the release of relocation notice, compensation shall be paid according to the estimated market value plus 5% as relocation rewards. 9) The monetary compensation received by the relocated household shall be exempted from individual income tax; if the relocated household chooses to purchase new house, the part in the purchase price that is equivalent to the monetary compensation shall be exempted from deed tax 10) Compensation for house attachments: cable TV: 120 Yuan per household, fixed-line telephone: 128 Yuan per household, broadband removal: 200 Yuan per line, split type wall mounted air conditioner: 300 Yuan/set, split type floor standing air conditioner: 500 Yuan/set, electric and gas heater: 100 Yuan/set, solar heater: 400 Yuan/set and pipeline gas when monetary compensation method is selected: 3200 Yuan per household. Besides the above mentioned compensations, the project Management Office and the House Expropriation and Compensation Offices of all districts organize the “relocation action” to facilitate the resettlement of the affected families in the shortest time. In details, through organization and coordination by the project Management Office and the House Expropriation and Compensation Offices, 56 large real estate enterprises are willing to supply preferential prices for the purchase of new houses by the affected families and 13 real estate intermediary agencies are willing to provide deduction or exemption of the transaction commission for their purchase of send-hand houses. 2. Policy for expropriation of other residential houses on state-owned land If the expropriated are unit self-managed houses, the following policy shall be implemented: 1) The persons whose houses are expropriated can choose from the two

44 compensation methods, monetary compensation or house property right exchange. 2) If complete ownership of the house has been obtained in housing reform or the expropriated house is built on collected funds, the policies for expropriation of private houses shall be implemented. If only partial ownership has been obtained in housing reform, the policies for expropriation of private houses shall be implemented after clarifying the property relations between the unit and the persons living in the house. If the expropriated are government directly-managed houses, the following policy shall be implemented: Property right exchange and monetary compensation are available for choice. 1) If the tenant meets with housing reform conditions, housing reform measures shall be firstly carried out to the expropriated house and then tenants shall choose property right exchange or monetary compensation 2) If the tenant doesn't meet with housing reform conditions, one of the following two resettlement and compensation methods may be chosen: Choice 1: If the tenant chooses to continue the tenancy, the house owner shall sign property right exchange agreement with the house expropriation department and signs new lease contract with the tenant. Choice 2: If the tenant chooses monetary compensation, 10% of the estimated market value of the expropriated house shall be paid to the house owner, and 90% shall be paid to the tenant with the leasing relationship being terminated. The tenant does not enjoy any other compensations or rewards for the private houses that are supposed to be provided if monetary compensation method is chosen. 3. Policy for expropriation of private nonresidential houses on state-owned land 1) Monetary compensation shall be carried out according to the estimated market value. 2) Decoration compensation shall be confirmed by entrusting real estate appraisal agency. 3) Relocation compensation shall be paid by 5Yuan/m2 or be confirmed by entrusting real estate appraisal agency. 4) For production or business suspension caused by house expropriation, minimum wages for 6 months shall be compensated in full at one time according to the actual number of employees registered in business license.

45 5) Allowances and rewards: when the expropriated is nonresidential houses used for business, if monetary compensation is chosen, the compensation for production or business suspension shall be paid for additional 6 months as rewards; when the expropriated is nonresidential houses not used for business, if monetary compensation is chosen, the temporary relocation compensation shall be paid for 6 additional months as rewards. The temporary relocation compensation shall be subject to the standard for the private houses, that is, 13.5 Yuan/m2/month based on the building area of the expropriated house, one-off payment of 6 months. If the total amount of each household is less than 600 Yuan, the temporary relocation compensation shall be 600 Yuan. 4. Policy for expropriation of unit self-managed nonresidential housing on state-owned land If the expropriated are unit self-managed nonresidential houses, the compensation policy is described as follows: 1) If the expropriated housing is unit-owned nonresidential building built on the allocated land, monetary compensation shall be provided according to estimated market value minus 40% of land-transferring fees. No other compensations shall be made to the land. Compensation price = estimated market value - (estimated market value - replacement price) ×40% 2) If the expropriated housing is unit-owned nonresidential building built on the allocated land and it fails to obtain legal approvals for its construction or has no property right certificate, the construction cost shall be compensated. 3) If the expropriated housing is unit-owned nonresidential building built on the transferred land, monetary compensation shall be paid according to estimated market value. 4) If the expropriated housing is unit-owned nonresidential building built on the transferred land and it fails to obtain legal approvals for its construction or has no property right certificate, the construction cost shall be compensated. 5) Decoration compensation shall be confirmed by entrusting real estate appraisal agency. If the expropriated are government directly-managed public nonresidential houses, the compensation policy is described as follows:

46 1) If the tenant is state-owned or collectively-owned unit, the estimated market value of expropriated house shall be compensated to the house owner and then the house owner makes compensations to the tenant as the following standards: for tenancy period below 5 years, 20% of the housing compensations shall be paid; for tenancy period between 5 and 10 years (including 10 years), 30% of the housing compensations shall be paid; (3) for tenancy period between 10 and 15 years (including 15 years), 40% of the housing compensations shall be paid; (4) for tenancy period over 15 years, 50% of the housing compensations shall be paid. 2) The compensation for decoration, relocation and production or business suspension and the relocation reward shall be compensated to the tenant according to expropriation and compensation policies of private nonresidential housing. 3) If the tenant rents the expropriated house through bidding, the compensation shall be paid according to the lease agreement signed between both parties. If the tenant establishes leasing relations with the house owner or the right holder of government directly-managed public nonresidential houses through other ways, the compensation shall accord with the provisions in the lease contract signed by both parties; if the lease contract has no provisions on advance termination of the contract due to force majeure or house expropriation, the leasing parties shall solve the problems in accordance with laws and regulations. 4.3.5 Identification and compensation for unlicensed buildings The people’s governments of all districts shall take the lead to establish a working team consisting of staff from all related departments to investigate identify and provide suggestions for the handling of various unlicensed buildings. 1. The compensation and resettlement work for the unlicensed residential houses built without license prior to 1985 (included) shall be implemented by reference to the licensed houses and based on the facts. If the construction time of the residential houses built without license can’t be determined, the working team shall propose handling opinions by considering the current conditions of the house. 2. If the expropriated houses are within the unit’s land use right and the person whose house to be appropriated possess documents to prove that the building was built without license prior to 1985 (included), the compensation shall be paid according to the following standards:

47 (1) Nonresidential housing built without license on unit-owned land For the unit-owned nonresidential houses which were built without complete procedures before 1985 and the property right of which cannot be confirmed by the municipal Housing Property Right and Registration Management Department, Nanchang housing registration organ shall issue written materials to certify the area and structure and the house shall be compensated according to the construction and installation cost upon approval by the house expropriation department and relevant departments. (2) Residential housing built without license on unit-owned land The compensation for the residential buildings built by the unit itself without license prior to 1985 shall be made according to the construction and installation cost. If the household living in the buildings has no other residence in Nanchang City, the compensation shall be made in reference to the licensed houses. 3. When the construction time of the residential houses built without license can’t be determined and the owner only has this residence in the urban area of this city, the compensation and resettlement work shall be based on 36m2 if the building area of the house is smaller than 36m2; based on the actual area if it is larger than 36m2 but the per capita living space of household is smaller than 15m2; based on 15m2 per capita living space of household if it is larger than 36m2 and the per capita living space of household is larger than 15m2, and the part exceeding the compensation and resettlement area shall be supplied with monetary compensation according to the replacement price. 4. When the construction time of the residential houses built without license is difficult to be determined but the owner has other houses, the working team will have measurements for the houses and compensation shall be paid according to the construction and installation cost. 5. No compensation will be offered to various buildings and attachments which are built in a rush after the cut off date, i.e. August 20, 2012 is announced. 4.3.6 Special supporting measures for vulnerable groups During project implementation process, the project Management Office will carry out the special supporting measures among the vulnerable families that have been identified in resettlement survey. The special assistances as follows will be offered to the vulnerable families among

48 the persons with houses demolished. ●The relocated families that meet with application conditions of low-rent houses will receive priority to be arranged with low-rent houses. ●After moving out, the children of the relocated families in stage of compulsory education shall be able to attend school in the original residence area according to the admission system there, or attend school near the resettlement house. Elementary school children can also attend school near their rented house. ●The vulnerable families who meet with the requirements of urban subsistence allowance shall receive the allowance after the testimonial documents issued by the Civil Affairs Department of the area of the origin are reviewed and approved by the Civil Affairs Department of the area of the destination. ●Relocated families enjoy equivalent treatments with the original residents in the area of the resettlement house such as employment, training, medical care and social insurance, etc. Urban and rural cooperative medical insurance shall be purchased for them in the area of the resettlement house according to the principle of dependency administration. ●When the building area of the expropriated house is less than 36m2 and the house is the only residence of the relocated household in the city, if the relocated household has signed the compensation contract and relocated as scheduled, compensation shall be paid as the estimated market value of 36m2. ●During the relocation process, the House Expropriation and Compensation Offices of all districts shall work together with moving companies to provide relocation services to vulnerable families for free. 5 Resettlement Compensation Rates 5.1 Compensation Rate for To-be-acquired Collective Land The People’s Government of Jiangxi Province announced the Notice on Announcing the Standard of Unified Annual Output Value and Integrated Land Price for Expropriated Land in Jiangxi Province on December 6, 2010. As specified in this notice, the new land compensation rate is composed of land compensation fee and resettlement fee, not including the compensation for green crops and ground attachments.

49 Meanwhile, it is also specified in this notice that the standard of unified annual output value is applicable to calculating the compensation fund for the to-be-acquired collective-owned agricultural land, paddy field. Compensation calculation of other to-be-acquired collective-owned agricultural land, collective-owned construction land and unused land shall be carried out according to corresponding correction coefficient. (1) Land compensation rate Based on negotiation with displaced people in areas involved in land acquisition, acquisition of collective-owned land in this project will be carried out according to the Standard of Unified Annual Output Value and Integrated Land Price for expropriated land announced by the People’s Government of Jiangxi Province. As specified by the People’s Government o f Jiangxi Province, compensation standard for to-be-required collective land of this project shall be: Integrated land price for Hufang Village of Hufang Town in Qingshanhu district shall be RMB 148,808 Yuan/mu. Land compensation rate for Yuangang Administration Station, Fuxiang Village and Dongcheng Village, Shengmi Town of Honggutan District shall be RMB 57,301 Yuan/mu. (2) Compensation rate for young crops Compensation rate for young crops in to-be-acquired agricultural land shall be: RMB 1,002 Yuan/mu for paddy field and RMB 671 Yuan for dry field. (3) Compensation rate for ground attachments Compensation rate for main ground attachments on to-be-acquired collective land of this project shall be: RMB 300 Yuan for each hand pumped well, RMB 500 Yuan for each motor pumped well, RMB 50 Yuan/m for fence and RMB 30 Yuan/m2 for sheds. Compensation rate for various kinds of trees shall be made according to tree displacement quota: RMB 107.2 Yuan for those with diameter less than 20cm, RMB 230.1 Yuan for those with diameter of 20~25cm, RMB 424.82 Yuan for those with diameter of 25~30, RMB 599.24 Yuan for those with diameter of 30~35cm and RMB 740.54 Yuan for those with diameter of 35~40cm. 5.2 Compensation Rate for Demolished Houses on Collective Land There are two methods of compensation for demolished houses on collective land in this project for relocated families’ choice, i.e. monetary compensation and house

50 property right exchange. Monetary compensation rate shall be: 1) If the building area of the demolished house is within the resettlement area control criteria, the compensation standard is 2310 Yuan/m2; 2) If the building area of the demolished house exceeds the resettlement area control criteria, the part equal to the control criteria shall be compensated at 2310 Yuan/m2 and the part exceeding the control criteria shall be compensated according to the current conditions and structure of the house, brick-wood structure: 920 Yuan/m2, brick-concrete structure: 1100 Yuan/m2, frame structure: 1200 Yuan/m2. 3) Monetary compensation is 240 Yuan/m2 for simple structure and 30 Yuan/m2 for shed structure. Criteria of property right exchange: If property right exchange is selected, the calculation and control of resettlement area shall meet with such standard: per capita building area not exceeding 50m2 and building area per household not exceeding 350m2. Number of displaced people shall be calculated according to the number registered in book of registered rural permanent resident. Single child shall be treated as two. The married member or the member who has reached the age to split from the household in compliance with the Marriage Law or other laws or regulations shall be resettled separately according to related policies after splitting of household. When the resettlement house is chosen in the principle of being closest to the area of the demolished house, if the actual resettlement area is larger than the area of the demolished house, the exceeding part shall be purchased by the relocated household at cost price (2310 Yuan/m2 for frame structure high-rise building, 2165 Yuan/m2 for frame structure sub-high rise building, 1920 Yuan/m2 for frame structure multistoried building). When the building area of the demolished house is larger than the resettlement area control criteria, the exceeding part shall be compensated according to the current conditions and structure of the house, brick-wood structure: 920 Yuan/m2, brick-concrete structure: 1100 Yuan/m2, frame structure: 1200 Yuan /m2. Other compensation rates for demolished houses: Relocation allowance: one-off payment of 500 Yuan per household, and 1000 Yuan per household for those who need a second moving for temporary resettlement.

51 Temporary relocation allowance: 600 Yuan/month per household for 24 months in transition period. If the transition period exceeds 24 months, the allowance shall be doubled. But whatever, the temporary transition period can’t be longer than 36 months. Advance relocation allowance: allowance is provided to the relocated households who move in advance. “In advance” here means moving during the first two months of the relocation period specified by the signed compensation agreement. The amount is 200 Yuan per household per day in advance (for 60 days at maximum). Decoration compensation: the amount is decided through consultation with the relocated household or through appraisal by a qualified real estate appraisal agency. Compensation to other house attachments: fencing wall: 50 Yuan/m, cable TV: 120 Yuan per household, fixed-line telephone: 128 Yuan per household, broadband removal: 200 Yuan per line, split type wall mounted air conditioner: 300 Yuan/set, split type floor standing air conditioner: 500 Yuan/set, electric and gas heater: 100 Yuan/set and solar heater: 400 Yuan/set. Construction cost analysis of a typical house in affected area In order to examine the rationality of compensation rate for demolished houses in this project, the resettlement office analyzed the construction cost of a two-storey brick-concrete self-built house owned by Mr.’s Li’s family, in Lijia Natural Village, Yuangang Administration Station, Jiulonghu District. The house was finished at the end of 2011. It is the newest and best house among houses on to-be-acquired collective land of the project .

Basic information of Mr. Li’s house is as follows: Building time: 2011 Type of house: brick-concrete Area of house: 300m2 8km to the newly built county town, 12km to Nanchang

52 Material cost: Brick: 60,000 bricks in total, RMB 0.4 Yuan/brick, transportation fee: RMB 0.05 Yuan/brick, total cost: RMB 27,000Yuan. Cement: 600 Yuan/ton (including freight) × 50ton=30000 Yuan Sand: transported by vehicle for 20 times in total, 10 times transporting coarse sand, 10 times transporting fine sand, RMB 700 Yuan for each vehicle of coarse sand, and RMB 800 Yuan for each vehicle of fine sand, total cost: RMB 15,000 Yuan Steel bar: 8000Yuan/ton (including freight) × 2.5 ton= 20000Yuan Stone: 2,000 pieces, RMB 2 Yuan/piece, RMB 4,000 Yuan in total Door & window: made by contractor, RMB 20,000 Yuan in total Water and power supply: outsourced, RMB 15,000 Yuan in total Brick worker employed: outsourced, RMB 40,000 Yuan in total Carpenter employed: outsourced, RMB 10,000 Yuan in total Labor input by family members: RMB 150 Yuan/day × 200 days = RMB 30,000 Yuan Other expenses: RMB 20,000 Yuan Construction cost in total: RMB 231,000 Yuan, RMB 770 Yuan/m2 Mr.’s Li’s current house is built on their original house site, no extra money is spent for house site. So he thinks that if monetary compensation is adopted, RMB 1000 Yuan/m2 for brick-concrete house would be very satisfactory and much higher than construction cost of houses in his village. Construction of Xinjiaan Station in this project requires demolition of some buildings for business purpose on collective land of Hufang Village. These buildings are owned by Hufang Village collective and are used for commercial purposes. As for these buildings, compensation rate shall be RMB 2310 Yuan/m2 for demolished buildings in accordance with the existing demolition policies for houses on collective-owned land and allowances for transition loss due to production suspension and relocation allowances will be provided according to criteria for buildings of business purpose on state-owned land in the same district. Besides, to eliminate influences on collective income of Hufang Village caused by this project, the project management office and related authorities of Qingshanhu District will coordinate with authorities of business administration to allow Hufang Village to select a location with area equivalent to original area to rebuild business industries and restore the economic income source of the village collective.

53 5.3 Compensation Rate for Demolished Houses on State-owned Land Nanchang Rail Transit (NCRT) The project is a key transportation infrastructure construction project of the state, of which the state-owned land to be acquired will be expropriated by compensated use. Price of expropriated land shall comply with standards specified in Opinions on Further Clarifying the Charges for Allocated Use Right of State-owned Construction Land in Urban Area of Nanchang City, issued by the People’s Government of Nanchang City, coming into force on April 26th, 2012 According to the standard, urban area of Nanchang is divided into 5 levels, equity price standards are: 1,200,000 Yuan/mu in first-level district, 1,000,000 Yuan/mu in second-level district, 800,000 Yuan/mu in third-level district, 600,000Yuan/mu in fourth-level district and 400,000Yuan/mu in fifth-level district 5.4 Compensation Rate for Demolished Houses on State-owned Land 1. Compensation rate for demolished residential houses on state-owned land The owners of the expropriated houses on state-owned land can choose from the two compensation methods, monetary compensation or house property right exchange If the persons whose houses are expropriated choose monetary compensation, compensation for the value of the expropriated house shall be paid according to estimated market value. Real estate appraisal agency shall be chosen and determined by the persons whose house is expropriated through negotiation; if negotiation fails, it shall be determined by majority decision or random decision. If the persons whose houses are expropriated choose property exchange method, resettlement work shall be carried out according to the building area of the expropriated houses in the principles of “one resettlement house for one demolished house”, “appraisals for both demolished house and resettlement house”, “mutual payment of price difference” and “resettlement house with area closest to the area of the demolished house”. For the part with equivalent area, the principles of “appraisals for both demolished house and resettlement house” and “mutual payment of price difference” shall be followed. When the resettlement house is the house type with the area closest to the area of the demolished house, if the building area of resettlement house is larger

54 than that of demolished house, the exceeding part shall be paid according to cost price; if the building area of resettlement house exceeds the area of the house type closest to the demolished house, the exceeding part shall be paid according to the estimated market value of the resettlement house. Rates for other types of compensation apart from house compensation are as follows: 1) Relocation allowance: if the building area of the expropriated house is below 100 m2, each household shall be paid 500 Yuan for each time of relocation; if over 100 m2, each household shall be paid 500 Yuan for each time of relocation and 3 Yuan per square meter for the excessive area. 2) Temporary relocation allowance: for choice of property right exchange, the allowance shall be paid as 13.5 Yuan/m2/month according to the building area within the regulated or agreed temporary resettlement period; if the total payment of one household is less than 600Yuan, the allowance shall be accounted as 600Yuan. Temporary resettlement period shall be 24 months at maximum; for choice of monetary compensation or property right exchange of ready housing, 6 months’ allowance as 13.5 Yuan per month per square meter of the building area of expropriated house shall be paid in one-off method. If the total payment of one household is less than 600Yuan, the allowance shall be accounted as 600Yuan. 3) Relocation rewards: (1) When the persons whose houses are expropriated choose monetary compensation, if signing the compensation agreement within the specified time limit and moving out and delivering the house on time, they shall be compensated according to the estimated market value plus 20% as relocation rewards; (2) If signing the compensation agreement and finishing relocation within 60 days upon the release of relocation notice, compensation shall be paid according to the estimated market value plus 20% as relocation rewards; if signing the compensation agreement and finishing relocation within 61-120 days upon the release of relocation notice, compensation shall be paid according to the estimated market value plus 10% as relocation rewards; if signing the compensation agreement and finishing relocation within 121-180 days upon the release of relocation notice, compensation shall be paid according to the estimated market value plus 5% as relocation rewards. 4) Compensation for house attachments: cable TV: 120 Yuan per household,

55 fixed-line telephone: 128 Yuan per household, broadband removal: 200 Yuan per line, split type wall mounted air conditioner: 300 Yuan/set, split type floor standing air conditioner: 500 Yuan/set, electric and gas heater: 100 Yuan/set, solar heater: 400 Yuan/set and pipeline gas when monetary compensation method is selected: 3200 Yuan per household. 2. Compensation rate for non-residential houses on state-owned land Monetary compensation shall be paid for demolished non-residential houses on state-owned land based on estimated market value. Compensation for decoration shall be determined by entrusting real estate appraisal agency to evaluate the price. Rates of other types of compensation or allowances shall be as follows: 1) Relocation compensation shall be paid by 5Yuan/m2 or be confirmed by entrusting real estate appraisal agency. 2) For production or business suspension caused by house expropriation, minimum wages for 6 months shall be compensated in full at one time according to the actual number of employees registered in business license. 3) Allowances and rewards: when the expropriated is nonresidential houses used for business, if monetary compensation is chosen, the compensation for production or business suspension shall be paid for additional 6 months as rewards; when the expropriated is nonresidential houses not used for business, if monetary compensation is chosen, the temporary relocation compensation shall be paid for 6 additional months as rewards. The temporary relocation compensation shall be subject to the standard for the private houses, that is, 13.5 Yuan/m2/month based on the building area of the expropriated house, one-off payment of 6 months. If the total amount of each household is less than 600 Yuan, the temporary relocation compensation shall be 600 Yuan.

56 6 Implementation Plan for Resettlement and Rehabilitation 6.1 Objective and Principle of Resettlement and Rehabilitation 6.1.1 Objective The general objective of The World Bank Funded Nanchang Rail Transit (NCRT) The project focuses on recovering and improving the living standard and production of displaced people as soon as possible. According to the project management office, objective of resettlement works shall be “good environment for the city, wealth for people, people support for the government and harmony for the society”. The detailed objectives are: ● Relocated households will choose resettlement method at their free will and will get reasonable monetary compensation or in-kind resettlement; ● Compensate for all kinds of ground attachments as per their replacement prices. ● Reasonable compensation is provided for enterprises, units and shops, no affected labor will lost their jobs permanently due to acquisition influences on the place they worked; ● Recover the public utilities and environment of affected communities to the level before relocation and strive for improvement; ● Guarantee long-term livelihood of people with land expropriated and guarantee and improve their incomes. 6.1.2 Principle ● Displaced people shall have the right to know and the right of choice. Make sure that displaced people have full knowledge of various compensation and resettlement policies and measures. Besides, various resettlement methods shall be provided for displace people’s choice at their free will. ● Displaced people participate in all links of the resettlement process. ● All kinds of compensation for private person will be granted to the property owner completely and directly. ● Compensation for houses, specialized facilities and attachments will be calculated as per their estimated market value. Evaluation agency shall be selected by

57 transparent method according to regulations of laws. ● Assistance and care shall be given to vulnerable groups. 6.2 Resettlement of Relocated Households 6.2.1 Resettlement of relocated households affected by acquisition of collective-owned land There are 51 households to be demolished due to land acquisition of collective-owned land for vehicle depot and Zhanqiannandadao Station. Project management office provides two methods of monetary compensation and house property right exchange for displace people’s free choice. For households that have other houses or have purchased another house in urban area and thus hope to be compensated by money, compensation fund will be granted directly. Monetary compensation shall be: 1) If the building area of the demolished house is within the resettlement area control criteria, the compensation standard is 2310 Yuan/m2; 2) If the building area of the demolished house exceeds the resettlement area control criteria, the part equal to the control criteria shall be compensated at 2310 Yuan/m2 and the part exceeding the control criteria shall be compensated according to the current conditions and structure of the house, brick-wood structure: 920 Yuan/m2, brick-concrete structure: 1100 Yuan/m2, frame structure: 1200 Yuan/m2. 3) Monetary compensation is 240 Yuan/m2 for simple structure and 30 Yuan/m2 for shed structure. As can be seen from the construction cost analysis of the local building in Chapter 5, the above compensation rate is fairly sufficient to make up the displacement cost of displaced people. In fact, as house price of Nanchang city has been rising rapidly as in other cities of China, the in-kind resettlement method of “One resettlement house for one demolished house” is basically very well recognized by residents. During the investigation and survey stage, it was found out that almost everyone would like to choose the resettlement method of property right exchange. For families willing to choose property right exchange, they can choose houses in the nearby Fuyuan Garden Resettlement Complex for resettlement after negotiation. Relocated residents from the same community originally can be resettled in the same building to maintain their community integrity.

58 The Fuyuan Garden, located between the relocated Fuxiang Village and Yuangang Administration Station, is within 1000m from the original location. The Phase I of the resettlement complex has a building area of 200,000m2, which is capable to provide 2000 suites of resettlement houses. Construction of the complex was commenced in 2012 and it is expected to be put into use in 2013. Basic resettlement methods for households selected property right exchange shall be: 1) The calculation and control of resettlement area shall meet with such standard: per capita building area not exceeding 50m2 and building area per household not exceeding 350m2. The resettlement shall be subject to the principle of the area of resettlement house being closest to the area of the demolished house. 2) When the building area of the demolished house is within the resettlement area control criteria, the price difference for grade of structure shall be calculated for the part with equivalent area, 50 Yuan/m2 per grade. When the resettlement house is chosen in the principle of being closest to the area of the demolished house, if the actual resettlement area is larger than the area of the demolished house, the exceeding part shall be purchased by the relocated household at cost price (2310 Yuan/m2 for frame structure high-rise building, 2165 Yuan/m2 for frame structure sub-high rise building, 1920 Yuan/m2 for frame structure multistoried building). In principle, the choice of the resettlement house with area not closest to the area of the demolished house is not allowed. 3) When the building area of the demolished house is larger than the resettlement area control criteria, the exceeding part shall be compensated according to the current conditions and structure of the house, brick-wood structure: 920 Yuan/m2, brick-concrete structure: 1100 Yuan/m2, frame structure: 1200 Yuan /m2. 4) The number of persons contained in the relocated household shall be calculated according to the number of the immediate family members registered in the agricultural household register. The only child shall be considered as two persons. 5) The married member or the member who has reached the age to split from the household in compliance with the Marriage Law or other laws or regulations shall be resettled separately according to related policies after splitting of household, and the total actual resettlement area shall not exceed the total building area of the demolished

59 houses. Besides, relocated households can enjoy the following relocation policies: Relocation allowance: one-off payment of 500 Yuan per household, and 1000 Yuan per household for those who need a second moving for temporary resettlement. Temporary relocation allowance: 600 Yuan/month per household for 24 months in transition period. If the transition period exceeds 24 months, the allowance shall be doubled. But whatever, the temporary transition period can’t be longer than 24 months. Advance relocation allowance: allowance is provided to the relocated households who move in advance. “In advance” here means moving during the first two months of the relocation period specified by the signed compensation agreement. The amount is 200 Yuan per household per day in advance (for 60 days at maximum). Decoration compensation: the amount is decided through consultation with the relocated household or through appraisal by a qualified real estate appraisal agency. Compensation to other house attachments: fencing wall: 50 Yuan/m, cable TV: 120 Yuan per household, fixed-line telephone: 128 Yuan per household, broadband removal: 200 Yuan per line, split type wall mounted air conditioner: 300 Yuan/set, split type floor standing air conditioner: 500 Yuan/set, electric and gas heater: 100 Yuan/set and solar heater: 400 Yuan/set. According to data collected during early investigation, there are 51 relocated households and their average housing area per household is more than 280 m2. After property right exchange, they can get at least two suites of resettlement house. Some can even have 3 suites. They can use one for living and the other ones to rent. The resettlement location is near the west passenger station which is about to complete and brings increasing market demands. The monthly rent of a 90m2 house would be RMB 800~1000Yuan. In other words, a household will have an extra earning of RMB 800~2000 Yuan every month. What’s more, the house can be put into transaction after five-years transition period. By referring to the unit price of RMB 5000 Yuan/m2 of houses nearby, the house value of those families will become RMB 0,8~1.5 million Yuan, which is a huge increase of their family wealth.

60

Picture 6-1 Planning Drawing of Fuyuan Garden Resettlement Complex

Picture 6-2 Fuyuan Garden Resettlement Complex under Construction

In order to guarantee the construction of resettlement apartments meet the needs of displaced household, PMO and resettlement offices in district have set up a strict work plan and supervision mechanism: the district resettlement offices take charge of the construction , PMO will conduct special field supervision once a season, a professional supervision firm will be hired and stay permanently in the construction sites supervise the progress and quality of the resettlement apartments, and the displaced families will

61 be invited to visit the site periodically.

6.2.2Resettlement of relocated households affected by acquisition of state-owned land After consultation and communication with displaced people, the project management office made the resettlement and recovery policy for the houses on the state-owned land to be acquired in this project which can be briefly summarized as “two choices, two relocation points and two services”, i.e. monetary compensation and house property right exchange provided for the affected families’ choice, two relocation points built to provide houses for property right exchange and two services of “relocation action”. There are two methods of compensation for demolished houses on state-owned land for relocated households’ choice: 1. Monetary compensation During field investigation, it is found out that as the strict estimated market value is implemented, those that chose monetary compensation plus relocation rewards would actually get compensation price which equals 140% of estimated market price. The monetary compensation policies of Nanchang Rail Transit Line 1 have aroused strong discussions among citizens of Nanchang. During public participation section, more than 95% displaced people say that they are willing to choose monetary compensation if the current resettlement compensation policies are adopted. A displaced person of Yayuan Station did the following calculation: his current house, building area 116.4m2, was built 13 years ago. As according to the market valuated price, the house price would be RMB 8000Yuan/m2. And a newly built house building nearby is selling at the price of RMB 11500 Yuan/m2. If he chooses monetary compensation, the actual compensation plus reward would be RMB 12000 Yuan/m2. The compensation is well sufficient for him to buy a new house equaling the expropriated area of his original house. Considering convenience brought about by sub-way, if he chooses to buy the house a little far from original location, there would be lots of houses selling at RMB 6000 Yuan~8000Yuan/m2. The Fenghua Jiayuan Resettlement Complex not far away is selling at the price of RMB 4335 Yuan/m2 only. With the compensation money he gets, Mr. W can buy a house of the same size with his original one and have lots of money left. Mr. W is very satisfied about the compensation

62 policy. During public participation, it is found out that it has become a common view among displaced people of the project that monetary compensation is preferable. 2. In-kind resettlement by property right exchange Except the monetary compensation which attracted more than 95% displaced families, project management office also provides the method of in-kind resettlement for choice. All relocated families can be resettled based on the principle of “One resettlement house for one demolished house”, mutual evaluation, find prince difference of each other and area category closest to original house and can get a house with area equaling their original one. In order to provide in-kind resettlement house for displaced families of various stations, the project management office has provided complete housed in Fenghuang Jiayuan Complex in Honggutan New district and houses under construction in Chaoyang Xincheng Complex in Xihu District for displaced families to choose. The Fenghuang Jiayuan Resettlement Area is located at Fenghuangzhou Sub-district, Honggutan New District and is directly connected with the main road of Honggutan New district Central area, Hefeng Avenue. It is 2.6km from Bayi Bridge in the south, 1.0 km from Hero Bridge on the north, 15 minutes drive from the center of old urban area. Zhujianglu Station is established here for the Rail Transit Line 1 under construction, which greatly facilitates the residents here. Apart from this, there is also bus 506. There are three hospitals, 2 pedlars' markets, 2 supermarkets, 3 kindergartens near the complex. Besides, Primary school, junior high school is not far away. It is only 10 minutes’ bike from 26th Junior High and less than 5 minutes’ walk from new campus of attached middle school of Jiangxi Normal University and Nanchang Foreign Language School. The residential complex is 5 minutes’ walk from the local police station, which means the public security is well ensured.

63

Picture 6-3 A corner of the completed Fenghuang Resettlement Area

Fenghuang Jiayuan complex, covering an area of 12.57 hectares, has a total building area of 235,000 m2, including residential house of 210,000 m2 building area, totaling 2731 suites. Apart from the some buildings in Zone A, Zone B of preliminary stage, now there are 1169 suites of resettlement houses for displaced families to choose from. Though new house buildings near Fenghua Jiayuan Resettlement Complex are selling at average price of RMB 6500~7500 Yuan/m2, the project management office has promised that resettlement houses will be provided to displaced families that choose Fenghuang Jiayuan at the cost price of 4335 Yuan/m2, which is RMB 2000~3000 Yuan/m2 lower than other buildings nearby, Chaoyang Xincheng Resettlement Complex, covering an area of 152mu, is the resettlement complex under plan and construction provided by project management office for displaced families of Rail Transit Line 1, Line 2 and Line 5. The residential complex is adjacent to city roads on the four sides. A metro entrance of Rail Transit Line 5 is established in the vicinity of the complex, which facilitates travel of residents. Located near Taohuahe Park and Nancheng Zoo and not far away from Xinghuxiti Park and Ganjiang Park, the residential complex enjoys a very comfortable environment. The Chaoyangzhou District where Chaoyang Xincheng is located is a newly emerging urban residential area which is a key area of development of Nanchang city in recent years. The residential area is equipped with comprehensive supporting facilities including

64 public transportation, schools, network of trading establishment, public service, etc.

Picture6-4 Plan of Chaoyang Xincheng Resettlement Complex Chaoyang Xincheng resettlement complex was planned in 2012 and phase I project is expected to be finished within 24 months. Planned building area of Phase I is 209,500m2, capable of providing 2120 suites of resettlement house. Project management office has promised that resettlement houses will be provided to the displaced families that choose Chaoyang Xincheng resettlement complex at cost price of RMB 5285 Yuan/m2. Newly built housing nearby are selling at the price of RMB 7000~8500 Yuan/m2, which is 2000~3000 Yuan/m2 higher than resettlement house. Apart from the above compensation, project management office and Expropriation and Compensation Office of various districts also implements the “resettlement action” plan to help displaced families in finding satisfactory house. Through organization and coordination by project management office and Expropriation and Compensation Office of various districts, 56 large real estate enterprises are willing to provide favorable house purchasing prices for displaced families. The emprises include Zijincheng, China Resources, Redco, Greenland Group, China Poly, CBD, ITG, Sunny World, etc., which are all well-known real estate enterprises with strong capabilities, widely distributed and sufficient houses. Through organization and coordination by project management office and Expropriation and Compensation Office of various districts, displaced household of Rail Transit The project can enjoy at least 2~5% discounts under normal transaction condition provided that they purchase residential houses from the above enterprises

65 within 6 months after signing of the relocation agreement. Besides, project management office and Expropriation and Compensation Office of various districts coordinated with 13 influential real estate brokerage agencies in the city. The agencies will offer preferential discounts and reduce 50% of commission for displaced households of Rail Transit Line 2 Phase I that buys second-hand houses. 6.3 Resettlement of Displaced People Affected by Land Acquisition 6.3.1 Compensation for acquired land In this project, only parts of agricultural land in Yuangang Administration Station, Fuxiang Village and Dongcheng Village, Shengmi Town of Jiulonghu Sub-district, Honghutan New District will be expropriated. Among which, to-be-acquired cultivated land of Dongcheng Village is 143.39mu, accounting for 2.6% of the village’s present area of cultivated land. To-be-acquired cultivated land of Yuangang Administration Station is 105.84mu, accounting for 4.0% of the village’s present area of cultivated land. Zhanqiannandadao station will expropriate 5.45mu land of Fuxiang village, which are all construction site and unused land. According to the survey, there’s no family all contracted land of which is to be expropriated and some of the local cultivated land is out of cultivation. During public participation, all villagers prefer monetary compensation rather than land for land arrangement. If families with land expropriated want to have cultivated land, it is very easy for them to exchange with compensation fund with other villagers willing to let out their land. According to in-depth survey, among to-be-acquired land of Dongcheng village and Yuangang administration station, 80% is sloping dry land and about 10% is paddy field. Dry land is mainly used for planting peanut, sweet potato, sesame, etc. Paddy field can cultivated 1~2 seasons of paddy. As cultivated crops varies, gross income per mu of the land is usually RMB 1000~3000 Yuan and net income without labor input taken into account is RMB 500~1000 Yuan. Since income from agricultural production is rather low, most villagers prefer to work or do business in the city rather than engage in agricultural production activities. During interview with villagers of Dongcheng Village and Yuangang administration station and door-to-door economic investigation, we found that because of their location near the new county seat and Nanchang Urban area,

66 the convenient transportation, attraction of non-agricultural industries in urban area and promotion by development of Honggutan New district, and especially influences of large construction projects nearby like international sports center, Nancheng west passenger station, etc., 90% labor of the two villages are attracted to non-agricultural posts in development zone. By taking non-agricultural business activities at nearby places, a laborer can ear RMB 100~180 Yuan per day, i.e. RMB 2500~4000 Yuan per month, which is almost two times of the highest annual income per mu. Therefore, the villagers are not much interested in agricultural production. Most of them do non-agricultural business activities at nearby places and parts of the cultivated land is out of cultivation. Some villagers go back to the village for a short time during sowing season and the grain is for self-use. Therefore, acquisition of 2~4% cultivated land will not exert a significant influence on villagers' income and livelihood. The unified regional price is implemented for acquisition of land in Honggutan new district, i.e. RMB 57301 Yuan/mu. As for reasonable use of land compensation fund to ensure a solid and sustainable guarantee on long-term livelihood of displaced villagers, project management office and various departments of Honggutan new district went to the three villages involved in land acquisition to solicit opinions. The three villages also organize many times of discussion among villagers to give them a chance to fully express their opinions and arrive at a final conclusion at the villager’s assembly.

67

Picture6-5 Summary of discussion in Chengdong and Yuangang Village on the use of land compensation fund

In the villagers’ opinion, their villages, Yuangang administration and Fuxiang village are in immediate vicinity of the newly built west passenger station and is in the 25 square kms scope which will be developed integrally. Major project commenced includes west passenger station, administrative center of provincial government, Wanda Industrial Park. Investment amount would be more than RMB 30 billion Yuan. As the villages will turn into urban communities rapidly in the years to come and will have an excellent opportunity of development, it is necessary to make overall plan and arrangements for long-term livelihood of all villagers. If all land compensation fund is directly granted to each household, though it seems that land-lost people’s interest is ensured, some families may spend money irrationally and impairs their long-time livelihood ultimately. In order to make full use of the development opportunity and realize the goal of common wealth, the villagers are willing to take out a proportion of land compensation as industrial development fund and buy shares as investment, so that they can get dividends every year and enjoy the benefits of long-term development. After long-term and repeated consultation, all villagers agree that utilization policy for compensation fund of expropriated collective-owned land of the project shall be:

68 Hundred percent of the land compensation fund shall be used for the recovery of livelihood and long-term development of the villagers involved in land acquisition. In details, thirty percent in cash shall be given directly to the household with land expropriated; forty percent are invested as capitals by the households with land expropriated in principle of voluntariness to establish village-based joint stock company to develop specialized market, logistics or other collective economy on the village’s industrial land and the villagers will get dividends according to the shares they hold; and thirty percent is centrally utilized by the village, used for the collective welfare services of the village, such as community culture center, senior citizen activity center, fitness center, medical and health services center etc.

The compensation fund for the attachments on land and the green crops shall belong to and be given directly to the owners. The allocation of land compensation fund and resettlement allowance is under the supervision and audit of superior authorities. 6.3.2 Social security program for land lost people

From July 1st ,2006, Nanchang had set up employment and social security systems for land acquired rural population. In Honggutan Development Zone in which this project will acquire farm land , the main contents of the policies are:

All labors whose land to be required are qualified to get free service of job recommendation, employment guidance and labor skill training courses. All rural people whose farm land is less than 0.3 mu after land acquisition will be covered by social security program of urban citizens. The fee for social insurance will be paid by land user , and be integrated in the budget of land acquisition. All the aged people, male over 60 years and female over 50 years , will be treated as the retired and can get pension monthly all life after they paid social insurance fee more than 15 years with the land compensation. In Dongchen village, 143.39 mu farm land will be acquired, it accounts only 2.6% of the total . In Yuangang village , the number and the percentage are 105.84mu and 4.0% respectively. The highest percentage of land acquired in all households is 50%

69 and the lowest is 10%， and the average farm land they have is far higher than 0.3 mu after land acquisition. So, they will not be qualified to be integrated in urban social security program right after land acquisition by this project. However, PMO will pay the money to social security fund according to the policy for the social security program in the future. According to the overall development plan of Honggutan New Development Zone, all the villages in the zone will be transferred into urban communities in the coming years. The Land Resource Management Bureau and Human Resource and Social

Security Bureau of Honggutan Development District promise that, with the process of development, all people of Dongcheng village , Yuangang village and Fuxiang village

will be covered by urban social security, and all the labors will get free service of job recommendation , employment guidance and labor skill training courses.

6.4 Resettlement of Affected Shops, Enterprises and Units Construction of Line 2 Phase I requires demolition of 201 shops, all small business sites of commercial or other services along the street. These shops will recover to normal operation immediately with a new business space of equal area. Community where the demolished shops locate are all highly developed urban communities, shop houses are easy to rent. New frontage space or buildings after demolition of the buildings will create lots of shop houses for rent. Therefore, it is very convenient for small shops to resettle and restore. Through full consultation with affected shop owners along the line, monetary compensation will be adopted for shop houses of the project . Compensation for demolished shops shall be made based on estimated market value which is carried out by qualified real estate appraisal companies according to location, purpose, building area of the relocated house. Decoration compensation shall be confirmed by entrusting real estate appraisal agency. Relocation compensation shall be paid by 5Yuan/m2 or be confirmed by entrusting real estate appraisal agency. For production or business suspension caused by house expropriation, minimum

70 wages for 6 months shall be compensated in full at one time according to the actual number of employees registered in business license. When the expropriated is nonresidential houses used for business, if monetary compensation is chosen, the compensation for production or business suspension shall be paid for additional 6 months as rewards; when the expropriated is nonresidential houses not used for business, if monetary compensation is chosen, the temporary relocation compensation shall be paid for 6 additional months as rewards. The temporary relocation compensation shall be subject to the standard for the private houses, that is, 13.5 Yuan/m2/month based on the building area of the expropriated house, one-off payment of 6 months. If the total amount of each household is less than 600 Yuan, the temporary relocation compensation shall be 600 Yuan. Except demolition of shops, it would be inevitable that the land enclosures used during construction of metro-stations will have certain influences on normal operation of shops nearby. Therefore, the following measures area adopted to minimized the influences: 1) Arrange construction of each section in a rational manner, keep control of construction period and enclosure scope as possible; 2) Provided that safety is ensure, use no enclosure at places where it is not necessary and remove the enclosures immediately after construction is completed; 3) Leave an appropriate space at traffic junction where goods of the shops is moved in and out to provide convenience for vehicles of the shops; 4) Allow the shops to indicate business information on enclosing wall; 5) Leave pedestrian path of reasonable space during land enclosure construction in front of the shops to ensure that customers can pass through; Twenty-two enterprises and units will be affected due to demolition in this project. As described and analyzed in Chapter 2, most of them are affected frontage shops. Demolished buildings of these enterprises and units will be compensated by estimated market value and compensation for production suspension, business suspension and relocation will be provided. After demolition of street frontage buildings, new buildings will be built to use as office, to rent out as shops and recover their original functions very soon. Only the completed demolished Jiangxi Changyun Co., Ltd. and Nanchang No. 28 Junior High School shall be resettlement at another place.

71 Jiangxi Changyun Co., Ltd is a listed company, with many affiliated transport enterprises. Station on Yongshu Road of this project requires demolition of Nanchang Changyun Station of this company. Demolition of Nanchang Changyung Station will influence normal operation of the enterprise and cause inconvenience for long distance travel of citizens. During consultation, the project management office found out that with rapid development of the city, Nanchang Changyun station which is located in the city center has been facing an increasing traffic jam in the last half year. The company has intended to move out the station and rebuild a new passenger station at outskirts of the city. However, as this involves lots of departments and complicated procedure, the work has been moving very slowly. As it learns about the situation, the project management office report immediately to the rail transit construction headquarter which then coordinated with the Municipal Party committee and municipal government so that the plan of Changyun company to rebuild a substitute passenger station was implemented very quickly. Now the Xufang passenger station and Hongcheng passenger station which substitute Nanchang Changyun station on Yongshu Road have started operation. Demolition of the original station exerts no influences on normal operation of the enterprise or long distance travel of citizens.

Picture6-6 Nanchang Changyun Station of Changyun Company Which Would be Demolished Completely

72

Picture6-7 Xufang Passenger Station Completed and Put into Operation

Picture6-8 Hongcheng Passenger Station Completed and Put into Operation Construction and property development of Qingshanlukou station requires demolition of major teaching facilities of Nanchang No. 28 Junior High School. During site survey and early investigation, project management office and Expropriation and Compensation Office of Donghu district found out that No.28 junior high is partitioned by one wall with Nanchang Education College, which has built its new campus as according to arrangements of Nanchang education bureau. Therefore, Nanchang education bureau suggested that existing teaching facilities of Nanchang Education College shall be used to resettlement No. 28 junior high. According to the site survey: Nanchang Education College covers an area of 36mu, which is about 2 times of that of No. 28 junior high. It has 25,000m2 of teaching building, office building and teacher’s dormitory, which is much larger than the current 15,000m2 building area of No. 28

73 junior high. Nanchang Education College is equipped with comprehensive resources including audio-visual classroom, computer room, E-commerce laboratory, electronic reading room, network center, multi-media classroom, canteen and sports ground, etc., which is fully equipped for No. 28 junior high to start normal teaching as soon as they moved in. Project management office has discussed with Nanchang Education Bureau, Education Bureau of Donghu District, No.28 Junior High, Nanchang Education College and has reached an agreement on this multi-win solution. Resettlement of No. 28 junior high will be carried out based on the following three principles: first, the teaching site will be no more than 1000m from original location so that no trouble will be caused to teacher, students and student families of the school; second, relocation of the school shall be carried out during vacation so that normal teaching order will not be influenced; third, relocation after construction is finished, i.e. Relocation shall start after all original facilities, equipments of Nanchang Education College is well prepared and qualified to carry out normal teaching works.

Picture6-9Teaching Resource of Nanchang Education College is Sufficient Enough to Receive No. 28 Junior High Xinjiaan Station of the project requires demolition of 4980m2 business type buildings on collective-owned land of Hufang village. All these buildings are owned by

74 collective of Hufang village and used for commercial purpose which, as one of the important income source of Hufang village, brings income of more than RMB 1 million Yuan to the village.

Picture6-10 Business Type Buildings of Hufang Village to be Demolished

Project management office, expropriation and compensation office of Qingshanhu district and Hufang village have discussed in depth on demolition and compensation of these buildings and have arrived at the following demolition and compensation measures: first, provide compensation for demolished buildings at RMB 2310 Yuan/m2 according to the current demolition policies for houses on collective-owned land; and in the meantime, provide allowances for production suspension, transition loss and relocation by referring to allowance for business type buildings on state-owned land of the same district. Furthermore, to eliminate influences of the project on income of Hufang village collective, project management office and Qingshanhu district will coordinate with authorities of industry and commerce administration to allow Hufang Village to select sites on industrial land of the village and rebuild buildings of business purpose with equaling area in order to restore their economic income source. Hufang village is satisfied about the above resettlement and restoration measures. As soon as Line 2 Phase is put into operation and the supporting road network is constructed, the commercial value of the district where Hufang village is located will

75 further improve, rental of business type buildings with same area will be doubled, which means sharp increase of income from industry of the village collective and stronger guarantee on villager income. 6.5 Resettlement of Affected Vulnerable Population During project implementation process, the project Management Office will carry out the special supporting measures among the vulnerable families that have been identified in resettlement survey. The special assistances as follows will be offered to the vulnerable families among the persons with houses demolished. ●The relocated families that meet with application conditions of low-rent houses will receive priority to be arranged with low-rent houses. ●After moving out, the children of the relocated families in stage of compulsory education shall be able to attend school in the original residence area according to the admission system there, or attend school near the resettlement house. Elementary school children can also attend school near their rented house. ●The vulnerable families who meet with the requirements of urban subsistence allowance shall receive the allowance after the testimonial documents issued by the Civil Affairs Department of the area of the origin are reviewed and approved by the Civil Affairs Department of the area of the destination. ●Relocated families enjoy equivalent treatments with the original residents in the area of the resettlement house such as employment, training, medical care and social insurance, etc. Urban and rural cooperative medical insurance shall be purchased for them in the area of the resettlement house according to the principle of dependency administration. ●When the building area of the expropriated house is less than 36m2 and the house is the only residence of the relocated household in the city, if the relocated household has signed the compensation contract and relocated as scheduled, compensation shall be paid as the estimated market value of 36m2. ●During the relocation process, the House Expropriation and Compensation Offices of all districts shall work together with moving companies to provide relocation services to vulnerable families for free.

76 6.6 Schedule of Resettlement and Rehabilitation The civil engineering of this project is planned to be started in July, 2013. The schedule for all resettlement activities is shown in Table 6-1.

77 Tab. 6-1: Schedule of Resettlement Activities 2012 2013 2014 2015 2016 Content 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Establishment of project management

office Establishment of resettlement offices in sub-districts Resettlement survey Initial consultation of the resettlement scheme Draft of the Resettlement Action Plan Complementary survey Revise the Resettlement Action Plan Re-consultation of the resettlement scheme Improve the resettlement scheme Approve the resettlement plan Begin to implement the resettlement Internal monitoring External monitoring

78 7 Budget and Management of Resettlement Funds 7.1 Composition of Resettlement Funds Resettlement funds of this project mainly include: compensation fees for land acquisition, house demolition and all kinds of attachments; other expenses related to resettlement; administrative expenses for resettlement; unforeseeable expenses. 7.1.1 Compensation fee for land acquisition Compensation fund for land acquisition consists of land compensation fee and all kinds of taxes payable, including land compensation fee, expense for wood land vegetation restoration, farmland occupancy tax, land management fee, and other taxes of all kinds, etc. 7.1.2 Compensation fund for house demolition Compensation fund for house demolition includes: (1) Compensation fee for demolished houses; (2) Relocation fee and transitional fee; (3) Construction cost of resettlement site. 7.1.3 Compensation fee for all kinds of attachments Compensation fees for attachments on the land of private households and collective organizations will be calculated according to the actual quantity from surveys and the compensation criteria. 7.1.4 Other expenses related to resettlement Other expenses related to resettlement mainly refer to the expenses occurred in the course of preparation and implementation of the resettlement work, such as expenses of independent monitoring organizations for monitoring and evaluating the resettlement, expenses for hiring professional organizations to measure and evaluate the relocated objects, etc. These expenses will be determined as per the charging criteria of similar industry and project. 7.1.5 Administrative expenses for resettlement The administrative expenses for resettlement are calculated as per 5 percent of the direct resettlement funds. These expenses are mainly used for strengthening the organizations related to resettlement work, organization and coordination, internal monitoring, on-the-job training, rewards for progress of relocation of implementing

79 units, information collection and publish, preparation in early period, purchasing offices, renting temporary offices, paying salaries and social security of employees, purchasing and using transportation facilities, maintaining the vehicles, communication and daily management, etc. 7.1.6 Unforeseeable expenses Unforeseeable expenses, including unforeseeable expenses of material and price (not including expenses caused by temporary change of engineering design) are calculated as per 10 percent of the basic expenses. 7.2 Budget of resettlement funds Based on the compensation rate and statistical quantity of all kinds of affected items, the total budget of the resettlement funds for the project amounts to 2295655275 Yuan. Details see Table 7-1. Tab. 7-1: Budget of Resettlement Funds No. Item Unit Quantity Compensation rate (Yuan) Amount (Yuan) I Basic expenses 1942178743 1 Expenses for acquisition of 91530242.69 collective-owned land Compensation fees for mu 18792056.28 collective-owned land Paddy field mu 60.46 57301 3464418.46

Dry field 198.77 38391.67 7631112.246

Forest land 340.65 20055.35 6831854.978 Construction land mu 12.66 38391.67-148808 864670.6 Compensation fee for green mu 193955.59 crops Paddy field mu 60.46 1002 60580.92

Dry field mu 198.77 671 133374.67

Land acquisition charges 18794430.82

Farmland occupancy tax m2 172906.41 10 1729064.1

Fees for the paid use of land m2 404929.03 24 9718296.72 newly added for construction Farmland reclamation fee mu 259.23 26000 6739980

Social security program 53749800

Flood control fund mu 607.09 1000 607090

2 Compensation for mu 133.45 400000-1200000 106760000

80 acquisition of state-owned land 3 Other land acquisition 8672426.562 compensation Service expense of land 2% of land acquisition fee 2890808.854 acquisition Administrative expense of 4% of land acquisition fee 5781617.708 land acquisition 4 Compensation for Yuan 1731991086 demolished house Frame 24559.74 216299463 Brick-concrete 131975.19 923318248 Brick- wood 11806.05 87406551 Relocation rewards Calculate at 40％ of compensation for house 490809704.8 demolition Relocation allowances Household 1043 500 521500 Temporary resettlement m2 RMB 81Yuan/m2 168340.98 13635619.38 allowances II Related expenses 62149719.79 1 Agency fee of acquisition and demolition (1.8% of basic expense) 34959217.38 2 Appraisal fee, monitoring fee of resettlement (calculate at 0.4% of basic expenses) 7768714.974 3 Other related expenses for demolition cleaning, auditing institutions, etc. (calculate at 19421787.43 1% of basic expenses) III Administrative expenses of resettlement (calculate at 5% of basic expenses) 97108937.17 IV Unexpected expenses (calculate at 10% of basic expenses) 194217874.3 Total 2295655275

Note: According to policies of house acquisition, compensation for demolition of various types of buildings shall be determined based on estimated market value. House demolition expenses listed above are the results of calculated by referring to building structures and prices of different districts in Nanchang. It is only for reference. 7.3 Receiver and Distribution of Resettlement Funds 7.3.1 Receiver of resettlement fund The resettlement funds of this project will be allocated to different receivers according to the ownership of different affected items. For details you can refer to Table 7-2. In order to make sure the compensation funds can be granted to affected people and units on time and in full, we should not only give full play to the role of independent

81 monitoring organizations, internal monitoring organizations and national audit institutions, but also reduce intermediate links as much as possible and appropriate the compensation funds directly in simple and easy ways to both individuals and units. Tab.7-2 Receiver of Resettlement Fund Receiver Fund Category Compensation for house demolition, compensation for land acquisition, Enterprise, unit compensation for various kinds of attachments, relocation compensation, temporary relocation allowance, relocation rewards Land compensation for contracted land expropriated, compensation for demolition of private houses, compensation for attachments, compensation for Households young crops (only for families with young crops affected), relocation compensation, transition compensation, relocation rewards, etc. Others All kinds of taxes concerning land acquisition 7.3.2 Source and flow of resettlement funds The resettlement fund of the Nanchang Rail Transit The project is raised by the project management office and will be appropriated to affected households directly by Expropriation and Compensation Offices of various districts during resettlement through special accounts without any intermediate links to avoid being withheld and misappropriated. 7.4 Appropriation, Management and Monitoring of Resettlement Funds 7.4.1 Appropriation of resettlement fund The appropriation of resettlement funds will comply with the following principles: ●All costs involved in the land acquisition and relocation are counted into the project total budget. Compensation funds of each item are audited by the implementing unit of it and reported to the project for appropriation. The compensation funds are paid directly by the Expropriation and Compensation Office through special accounts to affected units and people. ●All kinds of compensation fee for private families are appropriated through special accounts. 7.4.2 Management and monitoring of resettlement funds ●The expenditure of the resettlement funds must be in strictly accordance with the policies in the Resettlement Action Plan and no less than the compensation rates and

82 scope prescribed in the Resettlement Action Plan. ●The implementing unit shall submit a monthly schedule to the project management office, the project management office shall pay the compensation funds according to the schedule confirmed by the implementing unit directly through finance department. ●Compensation funds for land, houses, attachments, relocation fees and transition allowances, etc., shall be approved by Expropriation and Compensation Office of the project . ●The project management office shall hire special agencies to conduct internal inspection on the usage of the resettlement funds. ●The Nanchang municipal finance and audit departments shall monitor and audit the usage of special funds. ●Independent resettlement monitoring organizations shall follow-up monitor the progress of appropriating the compensation funds to affected families during external monitoring.

83 8 Resettlement Organizations 8.1 Organization Setting In order to do well in the resettlement of the Nanchang Rail Transit Line 2 Phase I, all levels of governments of Shangri City set up organizations and improve their capabilities to make sure the resettlement can go smoothly. Since July 2011, we have established all needed organizations related to the resettlement of this project successively and defined their responsibilities clearly. The major organizations are: ●Nanchang Rail Transit Construction Headquarter ●Nanchang Rail Transit Project Management Office ●Expropriation and Compensation Office of various districts ●Resettlement office of various sub-district offices (village, township) ●Resettlement consultation institutions Network chart of resettlement organization see figure 8-1.

Nanchang Rail Transit Construction Headquarter

Project management Independent Resettlement office Monitoring Organization

Acquisition and Compensation offices of Various Districts

Resettlement Offices of Various Sub-districts (village and towns, representative offices)

Affected community (villages)、enterprises, shops and citizens

Picture8-1 Resettlement Organization of Nanchang Rail Transit Line 2 Phase I 8.2 Responsibility of the Organizations 8.2.1 Nanchang Rail Transit Construction Headquarter ●Playing a leading role in project preparation and implementation ●Making important decisions on resettlement work

84 ●Coordinating the relationship between resettlement organizations and relevant government departments 8.2.2 Nanchang Rail Transit Project Management Office ●Inviting investigation agency and design agency, participate in measurement of resettlement, carry out population statistics, save date and provide training for resettlement staff responsible for data utilization ●Applying for Land Planning Permit and Land Construction Permit from competent authorities ●Establishing various policies for resettlement action plan ●Providing training for staff of Expropriation and Compensation Offices of various districts ●Coordinating the progress of the construction and implementation of the Resettlement Action Plan ●Signing resettlement contract with land administration authorities and the people’s government of various districts ●Supervising appropriation of fund ●Guiding and supervising the implementation of resettlement ●Coordinating works of departments related with resettlement works ●Supervising resettlement activities ●Reviewing supervision report ●Providing resettlement budget ●Handling the complaints of relocated people during resettlement 8.2.3 Expropriation and compensation office of various districts ●Making resettlement implementation plan of the district according to information provided by investigation and design agencies and the resettlement policies ●Organizing the resettlement in the local region ●Guiding and supervising the resettlement offices in towns and sub-districts ●Accepting and managing the resettlement fund appropriated by the project management office ●Paying the resettlement fund to affected households, enterprises and shops ●Training the staff in the resettlement offices in sub-districts ●Reporting the resettlement progress to the project management office

85 ●Handling the issues during resettlement process and feedbacking the complaints of relocated people to the project management office 8.2.4 Resettlement offices in sub-districts (villages and towns, representative offices) ●Participating in investigation and other necessary organization works of resettlement ●Organizing public participation in local region and consultation of resettlement ●Checking, supervising and recording all resettlement activities in area of responsibility ●Reviewing and reporting acquisition date of the sub-district ●Supervising and carrying out acquisition of land as well as rebuilding and construction of buildings, attachments, units and houses ●Handling problems occurred during resettlement, submitting grievance and appeals from displaced people to resettlement organization of higher level. 8.2.5 Resettlement advisory agency During preparation of resettlement plan and implementation of resettlement, resettlement advisory agency shall be responsible for independent monitoring of resettlement works and providing resettlement progress report and supervision report to project management office and the World Bank. Responsibilities of the agency are described in detail in Chapter Independent Monitoring. 8.3 Staff and Facilities of Each Resettlement Organization Integrated department of project management office shall be responsible for resettlement works of the project . The department now has 8 people. With what they have learned in acquisition and resettlement works of Rail Transit Line 1, they now all have very strong organization and coordination abilities and rich work experience. All of them are skilled at using computer and are equipped with many other working skills. They are fully qualified for the resettlement work. The member list is given in Table 8-1. Staff and facilities of each resettlement organization are shown in Table 8-2 and Table 8-3.

86 Tab.8-1 Member List of Resettlement Offices of Various Levels Resettlement organization Principal Staff

Project Management Office Jiang Feng 8 people, Zhu Hai et al Expropriation and Compensation Office of Honggutan Zhang 5 people, Xiao Yusheng et al New District Linmin Expropriation and Compensation Office of Donghu Xu Benli 10 people, Hu Xinggao et al District Expropriation and Compensation Office of Xihu Zhou Qibin 8 people, Zhou Ting et al District Expropriation and Compensation Office of Qingshanhu Zhao Ying 8 people, Chen Ningsheng et al District

Tab.8-2 Staff of Each Resettlement Organization Resettlement Total Qualifications of staff Working period organization staff Project Management Know foreign language, computer and From January, 2012 to the 9 Office engineering and resettlement policies completion of resettlement Expropriation and Have long-term working experience of From August, 2012 to the Compensation Office of 11 similar jobs, with college degree or completion of resettlement Donghu District above Expropriation and Have long-term working experience of From August, 2012 to the Compensation Office of 9 similar jobs, with college degree or completion of resettlement Xihu District above Expropriation and Have long-term working experience of From August, 2012 to the Compensation Office of 9 similar jobs, with college degree or completion of resettlement Qingshanhu District above Expropriation and Have long-term working experience of From August, 2012 to the Compensation Office of 6 similar jobs, with college degree or completion of resettlement Honggutan New District above

87 Tab. 8-1: Facilities of Each Resettlement Organization

Computer Camera Car Office Organization (unit) (unit) (vehicle) (㎡)

Project Management Office 9 1 2 80

Expropriation and Compensation Office of 10 1 1 100 Donghu District Expropriation and Compensation Office of 8 1 1 100 Xihu District Expropriation and Compensation Office of 8 1 1 100 Qingshanhu District Expropriation and Compensation Office of 6 1 1 100 Honggutan New District

8.4 Measures to enhance resettlement organizations’ capability To improve the quality of staff and overall ability of all resettlement organizations, and to enable the resettlement staff to master the laws and regulations and requirements of the World Bank in terms of resettlement so that the resettlement work can go smoothly, the project management office has organized staff for many times to study and inspect the similar domestic projects to make them master the process of resettlement work of the World Bank financed projects and policies of involuntary resettlement. The project management office has conducted lots of trainings on the staff, through which they can study the national laws and regulations on resettlement, operational policies on involuntary resettlement of the World Bank OP4.12/BP4.12 and skills to deal with resettlement work. The trainings that have been conducted refer to Table 8-4.

88 Tab. 8-2: Training Plan of Resettlement Staff Training Training Training content Trainee No. institution schedule A B C D 1 PMO Training on resettlement process and survey PMO staff June, 2012 PMO National laws and regulations on resettlement PMO staff 2 June, 2012 and the policies of the World Bank PMO Procedure, management and monitoring of PMO staff 3 July, 2012 fund appropriation PMO Study the experience about resettlement of 4 World Bank financed projects in other PMO staff July, 2012 provinces PMO EMO staff of various 5 Resettlement procedure and policy July, 2012 districts PMO PMO staff , EMO 6 Resettlement policies of the World Bank staff of various August, 2012 districts PMO PMO staff , EMO 7 Resettlement and socio-economic surveys staff of various August, 2012 districts PMO PMO staff , EMO Latest policies on land acquisition and house 8 staff of various August, 2012 demolition districts PMO PMO staff , EMO Latest policies on land acquisition and house September, 9 staff of various demolition 2012 districts

8.5 Plan to Further Enhance Resettlement Organizations’ Capability To better implement the Resettlement Action Plan, guarantee the benefits of affected people and meet the overall plan of the project progress, the project management office will take the following measures to enhance the capability of resettlement organizations and improve efficiencies: 1. Leadership responsibility system: major leaders of the project management office will play a leading role in organizing a strong leadership for resettlement.

89 2. High-quality staff: staff in all resettlement offices must have strong professional competencies, deep insights into relevant policies, and more importantly rich working experience with the public. 3. Clear responsibility: we will clearly define the responsibilities of all resettlement offices according to the requirements of the World Bank and relevant national laws and regulations. 4. Staff trainings: we will conduct trainings irregularly on resettlement staff concerning the resettlement policies and information management. 5. Public and media supervision: all the resettlement information will be publicized to the public and society, and supervised by the public and media. 6. The project management office will hold meetings on an irregular basis to report the resettlement progress and deliver the reports to resettlement organization at all levels. 7. The project management office will provide all resettlement offices with necessary vehicles and office facilities to meet the demands of work. The future training plan to improve the resettlement organizations refers to Table 8-5.

90 Tab. 8-3: Further Training Plan of Resettlement Offices Training institution Training content Trainee Training schedule No. A B C D Study the experience Project management about resettlement of PMO staff , EMO staff of various 1 Oct. to Nov. 2012 center other World Bank districts financed projects Center for Involuntary Resettlement policies PMO staff , EMO staff of various 2 Nov. 2012 Resettlement, of the World Bank districts Wuhan University Center for Latest changes in Involuntary PMO staff , EMO staff of various 3 national policies on Dec. 2012 Resettlement, districts relocation Wuhan University Lessons drawn from Project management PMO staff , EMO staff of various 4 resettlement of the Jan. 2013 center districts other places Project management Computer operation PMO staff , EMO staff of various 5 Feb.-Mar. 2013 center and data processing districts Procedure and Staff of EMO of various districts policies of Project management and staff of resettlement offices of 6 resettlement work of Apr.-May 2013 center sub-districts, villages and towns, the World Bank representative offices financed project staff of resettlement offices of Project management Resettlement policies 7 sub-districts, villages and towns, May-June 2013 center and practice representative offices Study of the Project management international PMO staff , EMO staff of various 8 2013-2015 center experience about districts resettlement

91 9 Public Participation and Consultation To make the resettlement work of the project practical and reliable, safeguard the lawful rights and interests of relocated people and units, and truly realize the goal of “environment for the city, wealth for the public, popular support for the government and harmony for the society”, the project management office attaches great importance to the participation of and consultation with relocated people and prepares the Resettlement Action Plan on the basis of public consultation and transparency. Therefore, during the planning, designing and implementation of this project, the project management office, related department of Nanchang and staff of Expropriation and Compensation Offices of various districts make use of field investigation for planning and design, socio-economic survey and resettlement survey together with the advisory agency to widely publicize the information of this project by various means, solicit the opinions of affected people and consult with them about problems of common concern. The results of public participation and consultation provide reference for the improvement of the resettlement plan.

Picture 9-1: Staff Solicits the opinions and Suggestions on Different Occasions 9.1 Activities of Public Participation and Consultation That Have Already Been Conducted As for significant issues involved in the resettlement plan, the project management office has organized design institute, advisory agencies, and local resettlement organizations to publicize information and to conduct consultation with

92 affected people. The project management office and resettlement advisory agency have made the following efforts to promote public participation: (1) Publicizing the project information through official documents and announcements in the affected area; (2) Collecting the opinions and suggestions of affected people on the resettlement work by means of questionnaire survey; (3) Holding symposiums in various forms in the affected villages, to know about the financial status of affected families and solicit their opinions and suggestions towards resettlement work; (4) The affected people express their opinions or propose suggestions in oral or written form to local sub-district and representative office government, township governments or villages, and then the local governments convey these messages to the project management office. (5) Organizing special interview for women in affected communities. Know about possible influences of project construction on their life and transportation. Solicit their opinions and suggestions and report to related departments; (6) Organizing women to attending symposium in affected villages. Know about adverse impacts of acquisition on their life, solicit their opinions and suggestions on restoration and resettlement. (7) The project management office shall open internet forum and special mailbox to publicize construction information of rail transit project, to know about citizens’ needs and solicit their opinions and suggestions. With respect to the issues that occur during the resettlement process, e.g. compensation policy for relocated households, construction of resettlement complex and transition of relocated households, symposiums shall be held to solicit public opinions in the affected area. Tab. 9-1 shows the major publicizing and consultation activities that have been conducted so far.

93 Tab.9-1 Major Publicizing and Consultation Activities Content that is No Time publicized and Participant Organizer . consulted Design institute, PMO, EMO of various districts, resettlement offices Design proposal PMO, EMO of 1 2012 5 of sub-districts, resident of this project various districts representatives of communities along the line Station location Wuhan University, PMO, EMO of 2 2012 5-6 and layout various districts, resettlement offices PMO optimization of sub-districts Influences of Wuhan University, PMO, EMO of 3 2012 7-8 acquisition and various districts, resettlement offices PMO demolition of sub-districts Acquisition PMO, EMO of Honggutan New 4 2012 7 PMO compensation District PMO, EMO of various districts, Compensation resettlement offices of sub-districts, PMO, EMO of 5 2012 7 rate for house resident representatives of various districts communities along the line PMO, EMO of various districts, Social influences resettlement offices of sub-districts, PMO, EMO of 6 2012 8 of the project affected people, affected enterprises various districts and institutions Wuhan University, PMO, EMO of Resettlement various districts, resettlement offices PMO, EMO of 7 2012 8 method and of sub-districts, affected people, various districts wishes affected enterprises and institutions Resettlement and PMO, EMO of various districts, restoration of PMO, EMO of 8 2012 8 representatives of affected enterprises enterprises and various districts and institutions shops

During August-September of 2012, Center for Involuntary Resettlement of Wuhan University conducted a questionnaire survey among affected people through which the

94 public can express their opinions and suggestions. The questionnaire survey has been conducted on 124 affected people who are above 15 years old. The result of this survey refers to Table 9-2.

95 Tab. 9-2 Summary sheet of public opinions and suggestions Ratio of the Content of the survey Public opinions answers to the total (%) 1. Do you know about the information of construction of Rail Transit Line 2? Very clear 83.33 Know a little, but not very clear 14.17 Know nothing 2.50 2. Do you agree with the project ? Pro 95.83 Against 2.50 Indifferent 1.67 3. Potential benefits from this project (multiple choice) 1) Convenient traffic 95.83 2) Improving city image 55.83 3) Improving construction environment of the 81.67 city 4) Other 46.67 0.00 4. Potential harm of this project

(multiple choice) 1) The traffic will be worse 72.50 2) The environment will be influenced 55.83 3) Lost place of living 65.00 4) Lost job 28.33 5）Other 46.67 5. Do you know the compensation policies of Nanchang City for land acquisition and house demolition? Very clear 79.17 Know a little, but not very clear 17.50 Know nothing 3.33

96 6. What opinions and suggestions do you have about the acquisition and demolition work? 1) Minimize demolished house 90.00 2) Minimize to-be-acquired land 73.33 3) Connect with public transportation as 98.33 possible 4) Take into consideration the traffic safety 91.67 of affected residents 5) Take measures to alleviate stress 82.50 imposed by construction on traffic 6）Carry out construction segment by segment to reduce construction 72.50 influencing cycle as possible 7. What’s your aspiration as for the

resettlement?

1) Property right exchange 2.50 2) Receiving monetary compensation, 3) 95.00 buying houses by themselves Others 2.50

By analyzing the statistical data in Table 9-2, we can arrive at the following conclusions: First, since large scale urban construction and the publication has enjoyed popular support in recent year and because of the large influences of Rail Transit Line 1 in particular, more than 83 percent of the affected people know about the Rail Transit The project and 14 percent have heard about the construction plan of Line 2. However, 2.5 percent know nothing about the project . These data show that the affected people have gained a lot of knowledge about this project through the activities of public participation, but we still need to deepen their understanding of this project through all kinds of channels and ways in the future. Correspondingly, over 95 percent of the affected people support this project and 5 percent act indifferently or against the project . The data are consistent with the impression we gained during social economic investigation and resettlement investigation. Generally speaking, this project is welcomed by people of

97 Nanchang city. The general public has high expectations on rail transit in bringing great benefits to travel of citizens and social and economic developments of Nanchang. Second, most people think this project will have positive impacts on transportation, among which the most direct benefit is greatly alleviating traffic pressure for citizens and improving construction environment of the city. About adverse impacts of project construction, a large proportion of citizens worried that the construction process itself will bring large pressure on the already severe traffic condition and hope that project management office and related departments shall take active dispersion measures, optimize project design and construction schedule, organize construction scientifically and perfect the design scheme in order to reduce the project impacts to the minimum. Third, nearly 80% of respondents are quite clear o about the resettlement policy of Nanchang, 17% though not totally clear but know something about it and only 4.76% know nothing about the policy. The data shows that the widely influential resettlement works of Rail Transit Line 1 project has won popular support for demolition and resettlement works in Nanchang, which laid a solid foundation for resettlement works of the project . Fourth, as for house resettlement, 95% of affected people choose monetary resettlement and others hope that they can be resettled in economically affordable houses as in-kind resettlement. The result of aspiration investigation is identical with resettlement plan prepared by the project management office. The above collected public opinions were fully respected and referenced during preparation of this resettlement action plan and policies of acquisition, demolition and resettlement have fully considered their opinions and proposals. 9.2 Feedback to the Opinions Collected Through Public Participation and Consultation During the period from June to December of 2012, the project management office and Center for Involuntary Resettlement, Wuhan University summed up the opinions and suggestions collected from affected people through various channels of public participation, feed backed their major concerns to the design institute, environment evaluation institutions and relevant departments. Many opinions and suggestions have been integratedin this Resettlement Action Plan. Tab. 9-3 shows the feedbacks to the opinions collected through public consultation.

98 Tab. 9-3: Main opinions collected through public participation and consultation and corresponding solutions Problem Opinions of affected people Solutions 1) Major part of land compensation fund shall be directly distributed to households with land requisitioned; the other part shall be used as development fund of village collective. Distributed proportion of compensation fund and specific use Impacts of Some families lost their and method of collective development fund shall land contracted land, which results in be decided by villagers representative conference. acquisition reduction of income sources. 2) During construction of vehicle depot and after it’s put into use, supplementary posts such as security personnel, cleaning personnel, ticketing staff shall give priority to proper labor among land lost population of Dongcheng Village and Yuangang Administration Station. 1) Carry out field exploration many times during design stage of the project , in order to avoid or reduce house demolition in compact housing concentration area and arrange the entrances and ventilation pavilions at the sides of existing roads. Construction of metro entrance When it is impossible to avoid demolition, choose Impacts of and ventilation pavilion usually a most economic plan according to number and house requires demolition of some structure of buildings. demolition buildings. 2) Provide Fenghua Jiayuan resettlement house for the relocated household’s choice, speed up construction of Chaoyang Xincheng resettlement complex. 3) Provide benefits for monetary resettlement, 40% higher than estimated market value of the house

99 Problem Opinions of affected people Solutions 1) Optimize route of the line and station setting as possible, reduce unnecessary land acquisition and house demolition, minimize number of enterprise and shops to be demolished; 2) Arrange construction period reasonably, control the construction period as possible; On one hand, some enterprises 3) Organize scientifically and reasonably during and shops need to be implementation, provide convenience for normal Impacts on demolished; on the other hand, operation of enterprises and shops along the enterprises normal operation of some existing roads and streets; and shops enterprises and shops will be 4) Provided that safety is ensured, make no influenced enclosure as possible and remove the enclosures immediately after construction is finished; 5) Leave proper space at the junction where goods of enterprises are moved in and out for travel of enterprise vehicles; 6) Allow enterprises to mark their business information on enclosing wall. 1) Enclosing wall for construction shall be steady Damages Construction of rail transit line and reliable and shall repaired in case of damages; to may cause damages to existing 2) During construction, if risks are posed on road transportati transportation facilities and way and sidewalk outside the enclosure, specific on result in potential safety personnel shall be assigned to carry out direction facilities hazards, which impacts life and and management on site; travel safety of citizens 3) Set warning signs at places where there’s pavement damages or other risks.

100 Problem Opinions of affected people Solutions 1) Provide enclosures for tunnel sections as possible, repair promptly if enclosing walls are damaged; 2) Strength management at construction sit e, construction material must be kept tidy, garbage shall be removed in time; 3) Cover or remove in time exposed dusts; Environme Metro construction may pose 4) Adopt process and technology that controls loud ntal and certain influences on noise during construction; noise surrounding environment, 5) Loud noise operations shall be prohibited before pollution mechanical construction may 8 am. and 10 pm.; cause noise pollution 6) Building temporary noise barrier to reduce impacts on affected residents; 7) Provide proper compensation for residents severely influenced by the noise; 8) Carry out monitoring on hazardous gas during construction and operation, use environmentally friendly materials and construction process strictly. 1) Before construction, inform each owner of buildings the tunnel may go through or influence; 2) Carry out an all around filed exploration on buildings that may be affected, work out treatment proposal; Damages Some residents were worried 3) Establish a contact mechanism between to about damages to buildings due construction team and residents, monitor influences surroundin to construction and excavation of construction on buildings in dynamically; g houses of shield tunnel 4) Make easy to understand publicity materials about possible influences of construction and operation and distribute to residents of the communities; 5) Know about the conditions of area where line goes through, make preventive plans of accidents.

101 Problem Opinions of affected people Solutions 1) Carry out segmental construction, avoid construction of the whole line at the same time which will cause large scale traffic jam; 2) Leave openings at certain distance of enclosure, openings at junctions where there’s large traffic flow shall be larger; Land enclosure in construction 3) Land enclosure shall cover as little area as Impacts on bring large pressure on the possible, leave a certain space for traffic; traffic already overwhelmed traffic 4) Once construction of a section is finished, clean the site immediately, remove the enclosure and restore the traffic; 5) Open through the micro-circulating traffic network of surrounding communities in advance; 6) Strengthen information publication, distribute traffic guide. Publicize demolition information at early time to Compensat allow business people sufficient time to handle Salary and profit loss of ion for with influences of demolition; provide certain business person can’t be business amount of compensation for production and compensated losses business suspension according to estimated price of buildings to be demolished; Dealing of Compensation fund shall be distributed to different relationshi Owner can get all compensation people according to different ownership; house p between fund but interest of lessees are compensation shall be distributed to house owner, owner and not guaranteed decoration compensation and compensation for lessee salary, profit loss shall be distributed to lessee; Establish channels for complaints and feedback, Affected such as complaint hotline, suggestion box. people of Establish consultation system. Hold symposiums the project Let the affected people share attended by the project management office, shall full project benefit, arise motivation expropriation and compensation offices of various participate of local governments and the districts, resettlement office of sub-districts, in all links public representatives from communities and affected of the people to discuss about solutions to solve the project problems.

102 9.3 Plan of Consultation with Affected People In the Next Stage With the advancing of preparation and implementation process of the project , the project management office and resettlement offices at all levels will conduct further consultative activities, which include: ●Specific opinions of affected people on compensation policy; ●Compensation for the relocated households and its schedule of payment; ●The construction of resettlement site; ●Situations that may occur during transition period; ●Other concerns of affected people; Schedule for consultation with affected people by all resettlement offices refers to Table 9-4. Resettlement offices in towns and sub-districts can hold consultative conferences with affected people on an irregular basis and report the problems to the project management office. Apart from taking part in the consultation activities organized by the project management office, the independent monitoring organization will also conduct consultation with affected people on other problems, collect their complaints and suggestions and provide monitoring information to resettlement departments of all levels.

103 Tab. 9-4: Time Schedule for Consultation with Affected People Content of consultation Time schedule Participated by Compensation policy and PMO, resettlement offices of sub-district, land acquisition and house 20131-2013 2 towns and villages, resettlement advisory demolition agency PMO, EMO of various districts, resettlement Resettlement method and 2013，1 －2013，3 offices of sub-district, towns and villages, specific implementation plan design institute, resettlement advisory agency Whole process of PMO, EMO of various districts, resettlement Restoration of affected project offices of sub-district, towns and villages, infrastructures implementation independent monitoring organization Whole process of Problems occurring in the Resettlement offices at all levels, independent project implementing period monitoring organization implementation Whole process of Collected suggestions and Monitoring department, SSACO, resettlement project complaints offices in towns and sub-districts implementation

9.4 Ways for the affected people to participate in consultation during implementing phase 1. Direct ways By holding symposiums with representatives of affected people or village cadres, to collect the major concerns and suggestions of affected people and solicit advices from the township government, sub-district government and village committees. 2. Indirect ways The public can express their complaints, opinions and suggestions to the community, village committees, resettlement departments of all levels and monitoring department. Resettlement offices should feedback their opinions according to the specific process. Project management office shall open a special opinion collection platform and related forum on Nanchang Sub-way Website and assign personnel to collected and organize opinions and suggestions from citizens.

104 9.5 Transparency of resettlement policies and the Resettlement Information Booklet To make every affected person understand the policies and implementing details about the resettlement of this project fully and timely, and to make the resettlement work really open, fair and transparent, resettlement organizations of all levels should adopt the following methods to guarantee the transparency of the resettlement policies: ●Before March 31, 2013, information about resettlement action plan of the project shall be publicized on wide-coverage media in Nanchang like Information Daily or Nanchang Metropolitan Daily, or publish related information on line on www.Jxnews.com.cn or www.ncmtr.com.cn; ●All affected village committees publicize such information as the affected area of the village, compensation rates, resettlement measures, ways of complaining and appealing, etc; ●Before June 30, 2013, the township governments and village committees should distribute the Resettlement Action Plan of this project so that affected people can read at anytime they want; ●District resettlement offices will prepare the Resettlement Information Booklet distribute to every affected family before implementation, external monitoring organization will supervise and participate the distribution. The Resettlement Information Booklet will list out how much influence there is on every affected family, resettlement policies and compensation rates of this project, progress of the project , and the process of expressing complaints. The Resettlement Information Booklet will be distributed to affected people before the official launch of this project. The format refers to the Appendix. ●After commencement of acquisition and demolition works, each station will establish a land acquisition and house demolition information inquiry station to publicize information, answer questions and provide help to the public.

105 10 Grievances and Appeals As a project that requires large amount of land acquisition and house demolition and involves many areas and persons, works of Nanchang Rail Transit Line 2 Phase I are very complicated. Affected people/communities and other stakeholders might have some complaints during the implementing process. To make sure the complaints can be solved quickly and satisfactorily, the project management office will set up a transparent and simple procedure that can collect and solve the complaints and appeals so as to settle the complaints objectively, justly and efficiently and make sure the resettlement work can go smoothly. The proposed complaint handling mechanism was used in our domestic Line 1 project and it has been approved as functional and effective. 10.1 Means of collecting complaints and appeals (1) Through report form neighborhood committee, village committees or resettlement offices in towns, sub-districts and representative offices, including complaints, schedules, measures and existing problems; (2) Land acquisition implementation organizations report information of implementation works and existed problems to the project management office through expropriation and compensation office of the district. (3) Land acquisition and house demolition coordination problems discovered during regular field inspection by staff of the project management office. (4) Related information reported by independent monitoring organization. (5) The affected people send letters or pay visits; (6) Related special issues discovered by auditing and discipline inspection departments; (7) Payment information collected from fund layout statement of the bank; (8) Special investigation of internal monitoring. 10.2 Complaint and Appealing Procedure During beginning of resettlement work, project management office shall publicize procedures of handling complaints and appealing to social public through all channels: Phase 1 Affected people can express their complaints to principal of resettlement of the community of sub-district in oral or written form. Oral complaints must be recorded in

106 written form and given definite reply within 1 week by resettlement offices in community or sub-districts If the issue is too serious and needs the instructions of the superior resettlement offices, they must try hard to get the reply of superior resettlement offices within 2 weeks. Phase 2 If the replies from Phase 1 are not satisfactory, the complainants can appeal to the expropriation and compensation office of the district within 1 month after getting the reply of Phase 1. The expropriation and compensation office of the district must make decisions on settling the complaints within 3 weeks. Phase 3 If the affected persons are still not satisfied with the reply from the expropriation and compensation office of the district, they can appeal to the project management office within 1 month after getting the reply of Phase 2. The project management office must make decisions on settling the complaints within 4 weeks. Phase 4 If the affected persons are still not satisfied with the reply of Phase 3, they can appeal to the civil court within 15 days after getting reply. 10.3 Principles for Handling Complaints Resettlement offices of all levels should conduct field investigation on people’s complaints, fully solicit the opinions of the public, negotiate with the public repeatedly and patiently, put forward solutions objectively and justly according to national laws and regulations, and the principles and standards of the Resettlement Action Plan. For complaints that failed to be solved, resettlement offices should report to superior resettlement organizations and coordinate with their investigation. Complainants can appeal to the next phase if the organization in the previous phase failed to give reply within the stipulated time. During the resettlement process, women may have their special complaints and appeals. Therefore, the resettlement offices of all levels are required to hire at least one female staff to deal with women’s appeals. The local governmental and non-governmental organizations such as the Department of Civil Affairs, Women’s Federation will also supervise the resettlement process to guarantee the rights and interests of the affected people, especially women.

107 10.4 Content and Means of Reply to Complaints 10.4.1 Content of reply ●Brief introduction of the complaints; ●Survey result; ●National regulations related to the complaints, principles and standards of the Resettlement Action Plan; ●Solutions and its specific basis; 10.4.2 Means of reply ●For individual complaints, replies will be sent directly in written form to complainants. ●For some complaints frequently heard, we will inform the community by means of holding residents meeting or issuing announcements. No matter what means is adopted, the reply documents should be sent to the resettlement organizations that the complainants belong to. 10.5 Records and Feedback of Complaints and Appeals During the resettlement process, resettlement offices should record and manage the information of complaints and their solutions, and submit such information in written form to the project management office every month, which will conduct regular inspection on the complaint record. To completely record the complaints of affected people and solutions to related problems, the project management office has drafted the registration form of complaints and appeals. The format refers to Table 10-1.

108 Tab. 10-1: Registration Form of Complaints and Appeals About Resettlement Work Receiving unit: Time: Receiving unit: Appealer’s name Content Required solution Appealer’s name

Appealer Appealer

(signature) (signature) Notes: 1. Recorder should record the complaints and requirements of appealers faithfully. 2. The process of appeal should not be disturbed and interfered by anything. 3. Appealers should be informed of the proposed solutions within the stipulated time.

The main content of this chapter will be publicized to the affected groups of this project and sent to every affected family household in the form of public publicity material before resettlement is implemented. 10.6 Contact Information for Complaints and Appeals The project management office will arrange special persons in charge of collecting the complaints of affected people. The name of the persons in charge, the phones and address of the resettlement offices refer to Table 10-2. Tab.10-2 Organizations and Staffs Receiving Complaints and Appeals Resettlement organization Contacts Address Phone

Project Management Office Jiang Feng No. 6, Xinzhou Road 86365816 Expropriation and Compensation Office of Donghu Yuanming North Xu Benli 82083116 District Road Expropriation and Compensation Office of Xihu Zhou Qibin Xiangshan Road 86643651 District Expropriation and Compensation Office of Qingshanhu Zhao Ying Jiangdananlukou 88301313 District Expropriation and Compensation Office of Honggutan Zhang Yuayuan Road 83838821 New District Linmin

109 11 Resettlement Monitoring 11.1 Internal Monitoring 11.1.1 Purpose of internal monitoring Internal monitoring is continuously conducted by project management office and resettlement organizations to internally monitor the implementation of the Resettlement Action Plan by top-down management system, aiming at grasping the progress of resettlement comprehensively, timely and accurately, finding and solving problems and providing decisive evidences for the smooth conduct of resettlement work. The purposes of internal monitoring are: to standardize and guide the internal monitoring work of those organizations related to the resettlement activities, including project management office and resettlement organizations of this World Bank financed project; make sure the resettlement work is strictly in accordance with the Resettlement Action Plan; make sure monitoring and evaluation activities are conducted orderly and efficiently in compliance with related standards so that related parties can be informed promptly the status of resettlement as well as find and correct the problems during the resettlement. Internal monitoring of the resettlement activities is conducted by project management office and resettlement organizations. They are required to submit internal monitoring reports to the World Bank regularly. 11.1.2 Implementing process of internal monitoring The internal monitoring can be divided into two phase: preparatory phase and implementing phase. Preparatory phase starts from the project identification period in the cycle of the World Bank Financed Project, going through project preparation, pre-evaluation and evaluation and ends at the project approval period. Implementing phase starts from the implementation of resettlement and ends at the realization of the goal of resettlement. 1. Preparatory phase of internal monitoring Project management office and local government will establish a resettlement organization in the early stage of project preparation. Project management office should set up a specialized organization among itself to take charge of the resettlement work. This organization must have capable employees to handle the resettlement work in order

110 to provide complete and objective information and data as well as help organizations in other fields take part in the resettlement work. Internal monitoring should start during the project preparation. Preparatory work of project management office includes: - organize trainings for project management office and staffs of resettlement implementing organizations concerning resettlement policies and experiences of the World Bank, national resettlement policies, resettlement planning, resettlement implementing and resettlement monitoring and evaluation; - hire professional organizations and experts as soon as possible to help with the drafting of the Resettlement Action Plan; conduct socio-economic investigation; make the Resettlement Action Plan with the help of professional organizations and experts; - set up resettlement information management system with the help of professional organizations and experts. Preparatory work of resettlement organizations includes: - sign detailed resettlement contracts with project owners; - set up or improve resettlement organizations of all levels and hire necessary staffs; - organize trainings for staffs in resettlement organizations of all levels; work with project owners and other commissioned professional organizations to conduct socio-economic investigation and to make resettlement plan; - set up resettlement information management system. 2. Implementing phase During implementing phase, SSACO will: - take charge of the resettlement activities according to the Resettlement Action Plan; - submit a detailed internal monitoring report to the World Bank semiannually; - promptly update statistical data of resettlement implementation and improve the resettlement information management system 11.1.3 Content of internal monitoring Internal monitoring includes the following aspects:  Organizing of organizations: establishment of the resettlement implementing organizations and related organizations and their division of labor; staff employment and capacity building of the resettlement organizations;

111  Resettlement policies and compensation rates: formulating and implementation of resettlement policies; implementation of compensation for all kinds of influence; special instructions on whether the Resettlement Action Plan is obeyed and reasons if any changes.  The process of choice house evaluation firms  The construction and distribution of the resettlement apartments  Implementing schedule of relocation and resettlement: overall progress and annual progress; progress of resettlement organizations and their staffs; implementing progress of permanent and temporary land acquisition; progress of house relocation; progress of rebuilding resettlement houses; progress of moving of relocated people; progress of building public utilities; progress of rehabilitation, relocation and rebuilding of special facilities; progress of other resettlement activities. Progress report of internal monitoring of relocation and resettlement refers to Table 11－1;  Resettlement budget and its implementation: amount and time of gradual payment of resettlement funds; usage and management of resettlement funds by resettlement implementing organizations of all levels; amount and time of payment of compensation funds for relocated owners of property (real estate), supervision and audit of using funds. Internal monitoring report on progress of using funds refers to Table 11－2;  Grievance, appeals, public participation, consultation, information disclosure, and external monitoring: channels, process and responsible organizations of grievance and appeals; effects of public participation and consultation; resettlement information booklet and its disclosure; independent monitoring organization and its activities and effects;  Resettlement of vulnerable groups (female families, elderly families, disabled families);  Solving problems in memorandum book of the World Bank inspection tour;  Existing problems and their solutions. 11.1.4 Internal monitoring methods Internal monitoring, as conducted by the internal resettlement system to monitor the implementing process of the resettlement from top to bottom, requires to set up an

112 information management system of resettlement implementation that is standard, unobstructed and from top to bottom between project management office related to the resettlement implementation and resettlement organizations of all levels so as to follow-up reflect the progress of resettlement implementation. Relocation departments of all levels should use the information management system to report bottom-up the schedule, funds and effects of the implementation as well as handle and analyze the information. Office management office has set up a perfect information management system which can memorize and manage all kinds of data information of the implementation activities comprehensively, timely and accurately. Based on the project implementation, this project will adopt the following several methods to conduct internal monitoring: 1. Normalized system of Statistical Report Project management office will formulate unified reports according to the requirements of the resettlement implementation, which is required to reflect the progress of resettlement fund appropriation and the completion status of the relocation. The reports should be regular monthly reports submitted from bottom to up when appropriating funds at the end of every month so that the project owners can master the project schedule through the status of fund appropriation. 2. Regular and Non-regular Report Project management office will take various forms to exchange with each other the problems occurred in the progress of resettlement and put forward proposal to handle these problems. 3. Regular Joint Meeting At the beginning of every month, project management office will hold a resettlement coordination meeting, during which members of sub-project resettlement offices will report the project schedule and problems, exchange their working experiences or study the measures to handle these problems. 4. Inspection Project management office will conduct both conventional and unconventional inspection to the work of subordinate resettlement organizations, further investigate and on-site deal with resettlement problems, and verify the working schedule and the

113 implementation of resettlement policies. 5. Information exchange with independent monitoring organizations Project management office and local implementing organizations should keep in constant contact with independent monitoring organizations to exchange information with them and consider the findings and evaluation opinions of independent monitoring organizations as reference. 6. Survey Project management office will conduct surveys by combining questionnaire and door-to-door interview to inspect the implementing status of the resettlement. The survey on households will adopt sampling method by extracting a certain amount of households or collective enterprises, studying their resettlement status by reports, reflecting the fulfilling degree of compensation funds and relocation fees to see whether resettlement is strictly implemented in accordance with the Resettlement Action Plan. Project management office will conduct the first survey after relocated people get the first compensation funds. After the first survey is conducted, project management office will adopt improvement measures to solve the problems reflected by the survey results and complaints and also follow-up investigate the implementing status of these improvement measures. Follow-up survey will adopt non-regular questionnaire means to follow-up investigate the resettlement of labor forces, land readjustment and settlements of complaint problems, and also collect suggestions in public consultation and house choosing. Table 11-1 Progress of land acquisition and house demolition Reporting unit:______Date: ______/____/______(Year/Month/Day) Planned Ratio to the total Completed Cumulative Resettlement activities quantity (%) Unit quantity completed quantity

Permanent land acquisition mu Housing relocation m2 10 Land compensation thousand 10 Payment of housing relocation fees thousand Author: Responsible household signature: Seal

114 Table 11-2 Progress of use of funds ___district__ (sub-district)____village (community) date _/____/____ (year/month/day)

Compensation Obtained funds Cumulative Requisite funds obtained in proportion to Quantity obtained Relocated unit Brief description funds in reporting total (unit) compensation (Yuan) period compensation funds (Yuan) funds (%)

Author: Responsible household signature: Seal:

11.1.5 Internal monitoring organizations and personnel arrangement Staffs of implementing organizations involved in monitoring see Table 11-3. Table 11-3 Staffs of implementing organizations in internal monitoring

Resettlement organizations Constant staffs Total staffs in peak hours

Project management office 8 10

Honggutan New District resettlement office 5 8

Donghu District resettlement office 10 12

Xihu District resettlement office 8 10

Qingshanhu District resettlement office 8 10

11.1.6 The cycle of internal monitoring and report Internal monitoring is a continuous process, during which there must be at least one overall monitoring in every quarter; in the critical period of relocation, monitoring will be conducted more frequently. During project preparation, internal monitoring organizations will work with the World Bank to draw up regular or non-regular internal reports, whose forms will be based on the requirements of the World Bank and differ according to the project and phase. After implementing the resettlement, project management office shall submit an internal monitoring report to the World Bank every six months.

115 11.2 External monitoring According to the requirements of the World Bank, during the implementing period of this project, project management office will choose an organization as the independent monitoring organization of this project in charge of the independent monitoring and evaluation for the resettlement of this project by wide range of comparison and selection. This organization must have engaged in related work for more than 10 years with rich relevant experience. 11.2.1 Purpose of external monitoring External monitoring will track the relocation and resettlement activities to monitor and evaluate whether the resettlement has achieved the following effect: 1. Follow the relevant national laws and regulations of resettlement; 2. Follow the relevant policies of the World Bank on involuntary resettlement; 3. Make the life and production of relocated households recover to or exceed the level before resettlement; 11.2.2 Independent monitoring organization and its staffs Staffs in independent monitoring organization must have the following qualifications: 1. Staffs in independent monitoring organization must have done similar jobs before with rich experiences in socio-economic survey, understand the requirements of the World Bank in terms of involuntary resettlement policy and know well the national and local policies and laws on resettlement. 2. These staffs must be able to conduct social investigations independently, endure hardships and work hard with good communication and exchange quality. 3. Among these staffs there must be some female staffs for external monitoring. 11.2.3 Responsibilities of independent monitoring organization Independent monitoring organization should take charge of the following activities:  Before the resettlement, independent monitoring organization should conduct baseline survey on the living standard of relocated households to well know the basic situation of their life and production.  During the resettlement, independent monitoring organization should follow-up monitor the implementation of resettlement. It should collect the suggestions and grievances of relocated households, then inform project management office and

116 local resettlement offices, and submit monitoring report to project management office and the World Bank.  Independent monitoring organization should follow up to investigate the changes in the life and production of relocated households and evaluate the resettlement activities and measures.  On the basis of investigation and full consultation with relocated households, independent monitoring organization should put forward constructive suggestions to project management office and local resettlement offices to make sure the resettlement work can be carried out smoothly and the life and production of relocated households can be recovered as soon as possible. 11.2.4 Methods and steps of external monitoring Independent monitoring organization will adopt the following methods to monitor the resettlement work: 1. On the basis of resettlement survey, independent monitoring organization will set up a data base of relocated population and carry out constant door-to-door interviews. Independent monitoring organization will conduct door-to-door interviews independently without company of staffs in local resettlement organization and local administrators after getting the list and related information of relocated households from primary-level organizations. When doing so, the interviewers should be relatively fixed, that’s to say, one interviewer on one relocated district, which will help establish a relationship of mutual trust between interviewers and relocated households and is to the benefit of the resettlement work. 2. In the area with dense relocated households, independent monitoring organization will hold non-regular symposiums to listen to the opinions of relocated households. 3. Site observation. Staffs of independent monitoring organization will visit the resettlement sites regularly or non-regularly and observe the resettlement progress on site. 4. Case study. Independent monitoring organization will focus on analyzing some certain outstanding case occurred in the process of resettlement, analyze the root cause of the problem, find solutions and give opinions for reference. 5. Questionnaire survey. Independent monitoring organization will conduct sample

117 survey on the rehabilitation of life and production of relocated people and their opinions of the resettlement work, and analyze the results promptly. Solve the existing problems so as to provide reference to the resettlement work of the next year. 11.2.5 Main content of external monitoring (1) Monitoring of the relocation households The independent monitoring organization will emphasize on monitoring the resettlement for those relocated households and the main monitoring indexes will focus on the following aspects:  Whether the compensation of house abides by the principle of market evaluation;  Whether the selection of evaluating organization abides by the legal procedure;  Whether compensation funds are allocated in time and in full;  Whether the time arrangement for relocation is reasonable;  Whether transition allowance and relocation fee are paid;  Whether the implementation scheduling of the resettlement houses are complete and whether the distribution process is transparent. (2) Monitoring of the land acquisition Based on the characters of the relocated land and its operation, independent monitoring organization will focus on the following aspects to monitor the resettlement of production:  Whether compensation rates of various acquisition lands are in accordance with national laws;  Whether the quantity of to-be-acquired land, compensation rate and compensation fund are publicized within the whole village and in which form;  Whether the issuing and usage of the compensation implements as planned. (3) Monitoring of the operation of resettlement organizations It mainly includes:  Whether staffs in resettlement organizations of all levels can meet the demands of resettlement work;  Whether resettlement organizations of all levels have the necessary working conditions;  Whether staffs in resettlement organizations are qualified enough to meet the requirements of resettlement work;

118  Personnel training of resettlement organizations;  Internal information management of resettlement organizations. (4) Monitoring of vulnerable groups Independent monitoring organization will follow-up monitor the vulnerable groups among those relocated households of this project by means of door-to-door interview, questionnaire survey, and case analysis. The main indexes of monitoring are:  What special preferential policies vulnerable groups enjoy during the resettlement;  Whether relocated needy families get help during the relocation;  Whether resettlement measures fully consider the special demands of relocated women;  Whether vulnerable groups, especially women, get employment or units related to the project ; how many vulnerable people are employed in the construction project;  Whether there are women staffs in charge of women affairs in resettlement organizations. (5) Baseline survey on the living standard of relocated households Before the official implementation of resettlement, independent monitoring organization will collect basic and standard resettlement information of the NCRT The project by means of sample survey, which will be conducted in the form of structural questionnaire survey. The sample survey will take all relocated families involved in the socio-economic research in the project preparation phase as sample database and conduct stratified sampling. The sampling proportion of the living standard baseline survey is 10% of the demolished and relocated household. The baseline survey on the living standard of relocated households includes the following main content: size of the family, production and management, housing construction area, employment structure, annual household expenditure, transportation condition, dwelling environment, and subjective evaluation of the production and living conditions. (6) Monitoring and evaluation of the resettlement effect After the official implementation of the resettlement, independent monitoring organization will follow-up monitor the resettlement effect continuously. Independent monitoring organization will conduct follow-up survey to those relocated families after half a year upon resettlement. The follow-up survey, similar to

119 the living standard baseline survey, will be conducted by means of sample survey and through structural questionnaire survey to reflect the impact of resettlement on the life and production of respondents so as to evaluate the effect of resettlement. 11.2.6 External monitoring report system Independent monitoring organization writes external monitoring reports based on observation and information by research for two ends: on one hand, to reflect objectively the progress and problems of resettlement work to the World Bank and project management office; on the other hand, to evaluate the socio-economic effect of the resettlement and to provide constructive suggestions so as to improve the resettlement work. The reporting cycle of independent monitoring organization to the World Bank and project management office:  Before July 31st of every year, submit an annual mid-term monitoring report on resettlement status of the first half of the year;  Before January 31st of every year, submit an annual monitoring report;  After half a year upon the conclusion of resettlement work, submit a comprehensive post-resettlement appraisal report. Regular monitoring report should at least contain the following aspects: 1) the monitoring object of the report; 2) the progress of the resettlement work; 3) the major discoveries of the monitoring organization; 4) major problems; 5) comments and opinions of independent monitoring organization. Independent monitoring organization should submit report to project management office and resettlement experts of the World Bank in both Chinese and English version. Before official submit, the independent monitoring organization should inform the resettlement office, ask for their opinions and exchange ideas in the content and form of the report.

120 12 Entitlement Matrix

Categories Relocated item Resettlement and Recovery Policies Compensation Rate

 The standard of unified annual output value and integrated land price formulated Compensation standards for to-be-acquired land are by the People’s Government of Jiangxi Province shall be implemented for the as follows: collectively-owned land to be acquired. RMB 148,808Yuan/mu in Hufang Village, Hufang  Hundred percent of the land compensation fund shall be used for the recovery of Town, Qingshan Lake Area; livelihood and long-term development of the villagers involved in land acquisition. RMB 57,301Yuan/mu in Dongcheng Village, In details, thirty percent in cash shall be given directly to the household with land Shengmi Town, Honggutan New District and requisitioned; forty percent are invested as capitals by the households with land management station of Yuangang sub-district, requisitioned in principle of voluntariness to establish village-based joint stock Jiulonghu Lake area, Honggutan New District and Acquisition company to develop specialized market, logistics or other collective economy on the Fuxiang Village. Contracting of collective village’s industrial land and the villagers will get dividends according to the shares The compensation standard for young crops in household land they hold; and thirty percent is centrally utilized by the village, used for the to-be-acquired land is RMB 1002 Yuan/mu for collective welfare services of the village, such as community culture center, senior paddy field, and 671 Yuan/mu for dry field. citizen activity center, fitness center, medical and health services center etc.  The compensation fund for the attachments on land and the green crops shall belong to and be given directly to the owners.  The allocation of land compensation fund and resettlement allowance is under the supervision and audit of superior authorities.  All the qualified rural population after land acquisition will be covered by social security program.

121 Acquisition of state-owned land shall be paid. Equity price standards are: 1,200,000 Yuan/mu in Acquisition first-level district, 1,000,000 Yuan/mu in of State-owned second-level district, 800,000 Yuan/mu in third-level state-owned land user district, 600,000Yuan/mu in fourth-level district and land 400,000Yuan/mu in fifth-level district

 Relocated family shall have a free choice between monetary compensation and 1) The calculation and control of resettlement area property right exchange shall meet with such standard: per capita building  For property right exchange, the district shall uniformly construct or purchase area not exceeding 50m2 and building area per ordinary commodity house, and settle the relocated household according to the household not exceeding 350m2. The resettlement building area of demolished house. shall be subject to the principle of the area of  Compensation for housing decorations should be entrusted to qualified bodies for resettlement house being closest to the area of the evaluation and be carried out accordingly. demolished house. Demolished  Monetary compensation for simple demolished shanties should be paid according 2) When the building area of the demolished house housing on to the replacement cost. is within the resettlement area control criteria, the House owner the collective  Business buildings on the to-be-acquired land in Hufang Village should be price difference for grade of structure shall be land replaced with monetary compensation. The standard is 2310 Yuan/m2, and calculated for the part with equivalent area, 50 compensation for idling and transiting shall also be provided according to the Yuan/m2 per grade. When the resettlement house is demolition of business buildings on state-owned land in the same area. Hufang chosen in the principle of being closest to the area of Village shall be allowed to build up business buildings with equivalent area on the the demolished house, if the actual resettlement area village’s industrial land to recover and develop collective economy. is larger than the area of the demolished house, the exceeding part shall be purchased by the relocated household at cost price (2310 Yuan/m2 for frame structure high-rise building, 2165 Yuan/m2 for

122 frame structure sub-high rise building, 1920 Yuan/m2 for frame structure multistoried building). In principle, the choice of the resettlement house with area not closest to the area of the demolished house is not allowed. 3) When the building area of the demolished house is larger than the resettlement area control criteria, the exceeding part shall be compensated according to the current conditions and structure of the house, brick-wood structure: 920 Yuan/m2, brick-concrete structure: 1100 Yuan/m2, frame structure: 1200 Yuan /m2. Relocation allowance: one-off payment of 500 Yuan per household, and 1000 Yuan per household for those who need a second moving for temporary resettlement. Temporary relocation allowance: 600 Yuan/month per household for 24 months in transition period. If the transition period exceeds 24 months, the allowance shall be doubled. But whatever, the temporary transition period can’t be longer than 24 months. Advance relocation allowance: allowance is

123 provided to the relocated households who move in advance. “In advance” here means moving during the first two months of the relocation period specified by the signed compensation agreement. The amount is 200 Yuan per household per day in advance (for 60 days at maximum). Decoration compensation: the amount is decided through consultation with the relocated household or through appraisal by a qualified real estate appraisal agency. Compensation to other house attachments: fencing wall: 50 Yuan/m, cable TV: 120 Yuan per household, fixed-line telephone: 128 Yuan per household, broadband removal: 200 Yuan per line, split type wall mounted air conditioner: 300 Yuan/set, split type floor standing air conditioner: 500 Yuan/set, electric and gas heater: 100 Yuan/set and solar heater: 400 Yuan/set.

Demolished 1. Acquisition of private residential housing Relocation allowance: residential Demolished 1) The owners of the expropriated houses can choose from the two compensation if the building area of the expropriated house is house on the residential methods, monetary compensation or house property right exchange. below 100 m2, each household shall be paid 500 state-owned house user 2) If the persons whose houses are expropriated choose monetary compensation, Yuan for each time of relocation; if over 100 m2, land compensation for the value of the expropriated house shall be paid according to each household shall be paid 500 Yuan for each time

124 estimated market value. Real estate appraisal agency shall be chosen and determined of relocation and 3 Yuan per square meter for the by the persons whose house is expropriated through negotiation; if negotiation fails, excessive area. it shall be determined by majority decision or random decision. Temporary resettlement allowance: 3) If the persons whose houses are expropriated choose property exchange method, for choice of property right exchange, the allowance resettlement work shall be carried out according to the building area of the shall be paid as 13.5 Yuan/m2/month according to expropriated houses in the principles of “one resettlement house for one demolished the building area within the regulated or agreed house”, “appraisals for both demolished house and resettlement house”, “mutual temporary resettlement period; if the total payment payment of price difference” and “resettlement house with area closest to the area of of one household is less than 600Yuan, the the demolished house”. For the part with equivalent area, the principles of allowance shall be accounted as 600Yuan. “appraisals for both demolished house and resettlement house” and “mutual payment Temporary resettlement period shall be 24 months at of price difference” shall be followed. When the resettlement house is the house type maximum; for choice of monetary compensation or with the area closest to the area of the demolished house, if the building area of property right exchange of ready housing, 6 months’ resettlement house is larger than that of demolished house, the exceeding part shall allowance as 13.5 Yuan per month per square meter be paid according to cost price; if the building area of resettlement house exceeds the of the building area of expropriated house shall be area of the house type closest to the demolished house, the exceeding part shall be paid in one-off method. If the total payment of one paid according to the estimated market value of the resettlement house. household is less than 600Yuan, the allowance shall 4) For the relocated households who sign the compensation agreement and move out be accounted as 600Yuan. within the specified time limit, the earlier moving out and delivering the house, the Relocation rewards: more priority in selecting the resettlement houses. (1) When the persons whose houses are expropriated 5) Decoration compensation shall be confirmed by entrusting real estate appraisal choose monetary compensation, if signing the agency. compensation agreement within the specified time 6) Relocated family shall also get relocation allowance, temporary resettlement limit and moving out and delivering the house on allowance, and relocation reward, etc. time, they shall be compensated according to the

125 7) The monetary compensation received by the relocated household shall be estimated market value plus 20% as relocation exempted from individual income tax; if the relocated household chooses to purchase rewards; (2) If signing the compensation agreement new house, the part in the purchase price that is equivalent to the monetary and finishing relocation within 60 days upon the compensation shall be exempted from deed tax release of relocation notice, compensation shall be 2. Acquisition of unit self-managed housing paid according to the estimated market value plus 1) The persons whose houses are expropriated can choose from the two 20% as relocation rewards; if signing the compensation methods, monetary compensation or house property right exchange. compensation agreement and finishing relocation 2) If complete ownership of the house has been obtained in housing reform or the within 61-120 days upon the release of relocation expropriated house is built on collected funds, the policies for expropriation of notice, compensation shall be paid according to the private houses shall be implemented. If only partial ownership has been obtained in estimated market value plus 10% as relocation housing reform, the policies for expropriation of private houses shall be implemented rewards; if signing the compensation agreement and after clarifying the property relations between the unit and the persons living in the finishing relocation within 121-180 days upon the house. release of relocation notice, compensation shall be 3. Acquisition of government directly-managed houses paid according to the estimated market value plus Property right exchange and monetary compensation are available for choice. 5% as relocation rewards. 1) If the tenant meets with housing reform conditions, housing reform measures shall Compensation for house attachments: be firstly carried out to the expropriated house and then tenants shall choose property Compensation for house attachments: cable TV: 120 right exchange or monetary compensation Yuan per household, fixed-line telephone: 128 Yuan 2) If the tenant doesn't meet with housing reform conditions, one of the following per household, broadband removal: 200 Yuan per two resettlement and compensation methods may be chosen: line, split type wall mounted air conditioner: 300 Choice 1: If the tenant chooses to continue the tenancy, the house owner shall sign Yuan/set, split type floor standing air conditioner: property right exchange agreement with the house expropriation department and 500 Yuan/set, electric and gas heater: 100 Yuan/set, signs new lease contract with the tenant. solar heater: 400 Yuan/set and pipeline gas when

126 Choice 2: If the tenant chooses monetary compensation, 10% of the estimated market monetary compensation method is selected: 3200 value of the expropriated house shall be paid to the house owner, and 90% shall be Yuan per household. paid to the tenant with the leasing relationship being terminated. The tenant does not enjoy any other compensations or rewards for the private houses that are supposed to be provided if monetary compensation method is chosen.

1. Acquisition of private nonresidential housing Compensation and rewards: 1) Monetary compensation shall be carried out according to the estimated market when the expropriated is nonresidential houses used value. for business, if monetary compensation is chosen, 2) Decoration compensation shall be confirmed by entrusting real estate appraisal the compensation for production or business agency. suspension shall be paid for additional 6 months as 3) Relocation allowance shall be paid by 5Yuan/m2 or be confirmed by entrusting rewards; when the expropriated is nonresidential Demolished real estate appraisal agency. houses not used for business, if monetary nonresidenti 4) For production or business suspension caused by house expropriation, minimum compensation is chosen, the temporary relocation Demolished al house on wages for 6 months shall be compensated in full at one time according to the actual compensation shall be paid for 6 additional months nonresidential the number of employees registered in business license. as rewards. The temporary relocation compensation house user state-owned 2. Acquisition of unit self-managed nonresidential housing shall be subject to the standard for the private land 1) If the expropriated housing is unit-owned nonresidential building built on the houses, that is, 13.5 Yuan/m2/month based on the allocated land, monetary compensation shall be provided according to estimated building area of the expropriated house, one-off market value minus 40% of land-transferring fees. No other compensations shall be payment of 6 months. If the total amount of each made to the land. household is less than 600 Yuan, the temporary Compensation price = estimated market value - (estimated market value - relocation compensation shall be 600 Yuan. replacement price) ×40% 2) If the expropriated housing is unit-owned nonresidential building built on the

127 allocated land and it fails to obtain legal approvals for its construction or has no property right certificate, the construction cost shall be compensated. 3) If the expropriated housing is unit-owned nonresidential building built on the transferred land, monetary compensation shall be paid according to estimated market value. 4) If the expropriated housing is unit-owned nonresidential building built on the transferred land and it fails to obtain legal approvals for its construction or has no property right certificate, the construction cost shall be compensated. 5) Decoration compensation shall be confirmed by entrusting real estate appraisal agency. 3. Acquisition of government directly-managed nonresidential public housing 1) If the tenant is state-owned or collectively-owned unit, the estimated market value of expropriated house shall be compensated to the house owner and then the house owner makes compensations to the tenant as the following standards: for tenancy period below 5 years, 20% of the housing compensations shall be paid; for tenancy period between 5 and 10 years (including 10 years), 30% of the housing compensations shall be paid; (3) for tenancy period between 10 and 15 years (including 15 years), 40% of the housing compensations shall be paid; (4) for tenancy period over 15 years, 50% of the housing compensations shall be paid. 2) The compensation for decoration, relocation and production or business suspension and the relocation reward shall be compensated to the tenant according to expropriation and compensation policies of private nonresidential housing. 3) If the tenant rents the expropriated house through bidding, the compensation shall

128 be paid according to the lease agreement signed between both parties. If the tenant establishes leasing relations with the house owner or the right holder of government directly-managed public nonresidential houses through other ways, the compensation shall accord with the provisions in the lease contract signed by both parties; if the lease contract has no provisions on advance termination of the contract due to force majeure or house expropriation, the leasing parties shall solve the problems in accordance with laws and regulations.

1. The compensation and resettlement work for the unlicensed residential houses built without license prior to 1985 (included) shall be implemented by reference to the licensed houses and based on the facts. If the construction time of the residential houses built without license can’t be determined, the working team shall propose handling opinions by considering the current conditions of the house. 2. If the expropriated houses are within the unit’s land use right and the person whose house to be appropriated possess documents to prove that the building was Demolished Unlicensed built without license prior to 1985 (included), the compensation shall be paid unlicensed building user according to the following standards: buildings (1) Nonresidential housing built without license on unit-owned land For the unit-owned nonresidential houses which were built without complete procedures before 1985 and the property right of which cannot be confirmed by the municipal Housing Property Right and Registration Management Department, Nanchang housing registration organ shall issue written materials to certify the area and structure and the house shall be compensated according to the construction and installation cost upon approval by the house expropriation department and relevant

129 departments. (2) Residential housing built without license on unit-owned land The compensation for the residential buildings built by the unit itself without license prior to 1985 shall be made according to the construction and installation cost. If the household living in the buildings has no other residence in Nanchang City, the compensation shall be made in reference to the licensed houses. 3. When the construction time of the residential houses built without license can’t be determined and the owner only has this residence in the urban area of this city, the compensation and resettlement work shall be based on 36m2 if the building area of the house is smaller than 36m2; based on the actual area if it is larger than 36m2 but the per capita living space of household is smaller than 15m2; based on 15m2 per capita living space of household if it is larger than 36m2 and the per capita living space of household is larger than 15m2, and the part exceeding the compensation and resettlement area shall be supplied with monetary compensation according to the replacement price. 4. When the construction time of the residential houses built without license is difficult to be determined but the owner has other houses, the working team will have measurements for the houses and compensation shall be paid according to the construction and installation cost.

130 ●The relocated families that meet with application conditions of low-rent houses will receive priority to be arranged with low-rent houses. ●After moving out, the children of the relocated families in stage of compulsory education shall be able to attend school in the original residence area according to the admission system there, or attend school near the resettlement house. Elementary school children can also attend school near their rented house. ●The vulnerable families who meet with the requirements of urban subsistence allowance shall receive the allowance after the testimonial documents issued by the Civil Affairs Department of the area of the origin are reviewed and approved by the Civil Affairs Department of the area of the destination. Vulnerable ●Relocated families enjoy equivalent treatments with the original residents in the Vulnerable groups area of the resettlement house such as employment, training, medical care and social families insurance, etc. Urban and rural cooperative medical insurance shall be purchased for them in the area of the resettlement house according to the principle of dependency administration. ●When the building area of the expropriated house is less than 36m2 and the house is the only residence of the relocated household in the city, if the relocated household has signed the compensation contract and relocated as scheduled, compensation shall be paid as the estimated market value of 36m2. ●During the relocation process, the House Expropriation and Compensation Offices of all districts shall work together with moving companies to provide relocation services to vulnerable families for free. 

131 Ground Compensation shall be directly paid according to the estimated market value of Owner attachments ground attachments.

132 Appendix 1 Resettlement Information Booklet Dear Mr. /Ms: As The World Bank Funded Nanchang Rail Transit (NCRT) The project will be built in the place where your family is located, we release this information booklet to help you know the basic information of this project, relevant national policies on land acquisition and house demolition and the influence on your family. I. Project information Nanchang Rail Transit (NCRT) The project starts from Zhanqiannandadao Station and ends at Xinjiaan Station, 23.3km long from west to east, all underground, including 21 stations (of which 6 transfer stations), average distance between stations about 1.11km. The line route is: Nanchangxi Railway station → Railway Station North Road → Fenghe Road → Chunhui Road → Ganjing River → Yangming Road → Bayi Road → Luoyang Road → Shunwai Road → Shanghai road. Besides, there is also a vehicle deport in the Hongjiaozhou. The preliminary plan starts from 2013, with a construction period of 4 years. II. Laws, regulations and compensation rates on land acquisition and house demolition Policies about land acquisition and demolition of this project are made based on following laws and regulations:  Regulation on the Expropriation of Buildings on State-owned Land and Compensation, coming into force on January 21, 2011;  Assessment Method for the Expropriation of Buildings on State-owned Land, coming into force on June 3, 2011;  Notice of the General Office of People’s Government of Nanchang City on Properly Handling Historical Problems in Urban House Demolition, coming into force on April 5, 2006;  Several Opinions of Nanchang City on Implementing the Regulation of the State Council on the Expropriation of Buildings on State-owned Land and Compensation, issued by the People’s Government of Nanchang City coming into force on June 3, 2011;  Opinions on Further Clarifying the Charges for Allocated Use Right of State-owned Construction Land in Urban Area of Nanchang City, issued by the People’s Government of Nanchang City, coming into force on May 10, 2012;

133  Notice of the General Office of the People’s Government of Nanchang City on Issues concerning Formulating Monetary Compensation Standard for Urban House Demolition, coming into force on December 1, 2009;  Notice of the General Office of the People’s Government of Nanchang City on Issues concerning Adjusting the Compensation Standard for Demolished Farmers’ Houses in Urban Planning Area, coming into force on December 1, 2009;  Notice on Adjusting Replacement Price of the Houses Used for Compensation and Resettlement for House Demolition in Nanchang City, issued by Nanchang Bureau of Commodity Prices, coming into force on December 1, 2009;  Notice on Implementing the “Six House Demolition Administration Systems of Nanchang City”, issued by Nanchang Real Estate Management Office, coming into force on May 19, 2004.World Bank operational policy OP4.12 Involuntary Resettlement and appendixes, coming into force on January 1, 2002;  World Bank business procedure BP4.12 Involuntary Resettlement and appendixes, coming into force on January 1, 2002, coming into force on January 1, 2012. Refer to the following table for the compensation policies for demolition and relocation of this project. Category Compensation rate 1. Relocation

compensation fee 2. Residence 3. Attachment to land The compensation rate for land acquisition and house demolition is determined according to the national laws and regulations and policies of the World Bank on involuntary resettlement on the basis of comprehensive research and investigation, in an aim to recover and improve the life of the affected people after resettlement as soon as possible.

134 III. Impact on Your Household (Unit) Deserved Compensation Item Quantity Compensation Remark Rate Fund 1 2 3 4 Total

IV. Time Schedule of the project Item Time Release the announcement of land acquisition and house demolition Pay the compensation fund Land acquisition, house

demolition and relocation Engineering Preparation Engineering construction V. Right and Obligation of Affected Persons (1). Right of Affected Persons The affected households can get all the due compensation fund based on above compensation rate and make suggestions step by step, from the villagers’ committees, township, sub-district office to the project management office. The specific suggestions include the following aspects: the quantity, basic value, rate and payment time of compensation and the choices of location for reconstruction. All resettlement offices must give reply to the complaints from affected households or reports from subordinated resettlements offices in 15 days after receiving them. (2). Obligation of Affected Persons  Be cooperative with the project construction.  Do not build new buildings within the scope of investigation after resettlement

135 survey. Otherwise, the affected households will get no compensation. VI. Complaints and Appeals You can express any complaints about the resettlement work according to the following process: Phase 1 Affected people can express oral or written complaints to village committees or resettlement offices in towns or sub-districts. Oral complaints must be recorded in written form and be clearly replied within 1 week by village committees or resettlement offices in towns or sub-districts. If the issue is too serious and needs the instructions of the superior resettlement offices, they must try their best to get the reply of superior resettlement offices within 2 weeks. Phase 2 If the replies in Phase 1 are not satisfactory, the complainants can appeal to the district Resettlement Office within 1 month after getting the reply of Phase 1. The district Resettlement Office must make decisions on settling the complaints within 3 weeks. Phase 3 If the affected households are still not satisfied with the reply from the district Resettlement Office, they can appeal to the project Management Office within 1 month after getting the reply of Phase 2. Project Management Office must respond to the complaints within 4 weeks. Phase 4 If the affected households are still not satisfied with the reply of Phase 3, they can appeal to the civil court within 15 days after getting reply. VII. Resettlement organizations ●Municipal institution Project Management Office Address: Xinzhou Road, No.6 Phone number: 86365816 ●Acquisition compensation office in Donghu District Address: North Yuanming Road Phone number: 82083116

136 ●Acquisition compensation office in Xihu District Address: Xiangshan Road Phone number: 86643651 ●Acquisition compensation office in Qingshanhu District Address: South Jiangda Road Intersection Phone number: 88301313 ●Acquisition compensation office in Honggutan New District Address: Yayuan Road, Honggutan Phone number: 83838821 ●Independent monitoring organization: Address: Phone number: XIII. Authority for the interpretation of this booklet The project Management Office of Nanchang Rail Transit has the authority for the interpretation of this booklet. Thank you for your support!

Project Management Office of Nanchang Rail Transit June, 2013

137

Attached Table 1 List of affected stores

Employee No. Name Building area (m2) (headcount) 1 T-Star 80 5 Elephant King Laundry (Dry Clean 2 15.52 2 Service) 3 Qiaodan Sports 65.52 4 4 Xiongji Porridge Restaurant 131.04 4 5 Eelly Clothing 63.25 2 6 Gree Air-Conditioning 126.5 7 Anwei Bamboo Fiber 63.25 2 8 Haoqi Men's Clothing 63.25 2 9 K-Bird Sports 63.25 3 10 Shanghai Phoenix Woolen Sweater 63.25 4 11 Fenteng Underwear 63.25 2 12 Meirenzhi 63.25 3 13 Bestn 63.25 5 14 Dule Fair-Price Convenience Store 63.25 2 15 Yaya Franchise Store 63.25 2 16 Fashion Leather Product 63.25 2 17 Jade Aubergine 63.25 2 18 Mytophome Real Estate (Shanghai Road) 24.94 2 19 China Sports Lottery 26.29 5 20 Meifeisewu 26.29 2 21 Jossyjo Down Jacket 52.58 5 22 Isabel Photographer 52.58 8 23 Meida Photoprint 26.29 1 24 Duoduo Snack 26.29 Out of business 25 Xiaoxiaochuan Restaurant 95.94 8 26 Kids’ Wear 82.92 2 27 Jianghu Barbecue 31.42 3 28 Tubeicha Teashop 9.81 2 29 Jixiangruyi Clothing 143.59 4

138 30 Xinmingshi Clothing 150 3 31 Playboy store 126 6 32 Tiantian Pharmacy 239.4 7 33 Yugang Coffee 884 15 34 Bengen down jacket 99 5 35 Yuxin Hotel 1482.4 7 36 Tianyuelou Hotel 964.06 6 37 Diyi-jia Chicken Row 33.04 2 38 Zhejiang Haircut 50.74 6 39 CCDD franchise store 74.34 5 40 Zengfang Jeans 76.7 4 41 361 franchise store 76.7 7 42 Huali Foot Service 34.2 1 43 Chengshang Chicken Head 80.14 19 Subtotal up to Xinjiaan Bus stop 6147.24 181 1 Yuema lockset 16 2 2 Tongxin Fair-price supermarket 20 3 3 Gree store 100 10 4 Zhangguang 101 store 100 10 5 Youchongwu pet shop 100 10 6 Senmu Door and Window Decoration 30 2 7 Railcom Office in Luoyang Road 20 2 8 Xiangxiang Leisure 40 5 9 Xinlong Graphics 20 2 10 Large Picture Copy 20 2 11 Adult Store 30 2 12 Xiaobudian Foot Bath 30 5 13 Loving Heart Healthcare Food Store 30 2 14 Huiertong Inspection Agent 30 3 15 Cement store 30 3 16 Ericsson healthcare 30 2 17 Xiaoqi Foot Bath 20 5 18 Yuansheng Advertising 40 2 19 Honggezi Foot Bath 40 5 20 Niannianhong Foot Bath 40 5

139 21 Thinker Advertising 40 2 Station 36015008 of China Welfare 22 20 2 Lottery 23 Lanzhou Stretched Noodles 30 5 24 Battery Repairs 10 1 25 Haoyunlai Massage 10 1 26 China Sports Lottery 20 2 27 Laihua Restaurant 60 10 28 Thirteen Spice grilled lobster and fish 40 5 29 Xiaowan’s Electro-mobile Repair 50 5 30 Mr Tu’s Shop 20 2 31 Ah Chun’s Special-Flavor Barbecue 60 5 32 Saibao Restaurant 60 5 Subtotal up to Hongdu Street 1206 127 1 Liangji Bakery 15 3 2 Zhongxin Plate 2O 2 3 China Railway Express store 2O 4 4 Train Ticket Agency 15 2 5 Yaya 157.3 7 6 Tangchao Fair-price Supermarket 154 4 7 Clinic for Male Disease 133.5 7 8 Crafty Haircut 63.96 3 9 Outeli Crown Bakery 70 3 10 Specialized Medical Care 74.16 4 11 Xinkang Cigarette and Wine Shop 68.43 2 12 Liangpinpuzi Food 46.56 3 13 Wangyun’s Cigarette and Wine Shop 27.18 2 14 Huang Shang Huang Food 27.18 2 15 French Crisp Cake 27.18 3 16 Bufangzhai Shoes 62.18 3 17 Snow-bright Shoeshine 20 2 18 Shandong Roasted Food 25 2 19 Baohaolao Hotel 50 4 20 Juewei Duck Neck 25 3 21 China International Travel Service 50 4

140 22 Shenlang Computer Consumables 80 4 23 Yingtai Decoration 150 5 24 Brother and Sister’s Business Fast Food 50 6 25 Golden Sun Medical Bookstore 500 4 26 New-way Learning Center 500 8 27 Brown’s School 500 6 28 Juren Leishi Education 500 6 Nanchang University-Affiliated Tutorial 29 500 8 Education 30 Lixin Office Supplies 450 8 31 Internet Bar 450 7 32 Yidianwei Restaurant 90 7 33 Home Management Center 750 4 34 Yangming Bookstore 20 3 35 ICBC Branch 200 13 36 ZTO Express 15 4 37 Guangdong Xingyi Decoration Company 200 5 Jiangxi Clinic of Traditional Chinese 38 200 7 Medicine and Acupuncture 39 Yixuan Painting and Carving 20 4 40 Mung Bean Cake 15 2 41 Jiangxi Nanhua Medicine Co., Ltd 300 8 Sub-total up to Qingshan Road 6601.63 188 1 Doctor’s Eyeglasses 207.16 5 2 Apple Experience Center 198.24 7 3 Xiehechang Tea Shop 101.1 2 4 China Unicom 101.1 5 5 Hp store 102.52 5 Subtotal up to Fuzhou Road 710.12 24 1 Hongdu Hotel at No.247, Yangming Road 63.4 2 2 China Everbright Bank 42.4 5 3 Asia Travel 72.15 4 4 Liangdian Color Print Center 72.15 2 Subtotal up to Yangming Park Bus 250.1 13 Stop

141 1 Nanchang International Travel Agency 31.2 5 2 Jiangfeng’s Grocery Store 25.2 3 3 Yon Ho Fast Food 51.2 8 4 Train Ticket Agency 23.58 4 5 Nanchang International Travel Service 42.75 5 6 Sterling Silver Wholesale 23.85 4 7 Silverlion 157.41 8 8 Bank of China 6.3 2 9 Xiyou Mahjong Machine 68.93 5 10 Branch of Jiangxi Exhibition Center 775.92 17 11 Changyun Audio/Video Equipment Store 45.5 4 Subtotal up to Yongshu Road Bus stop 1251.84 65 1 Weida Air-conditioning Equipment 31.92 3 Weixing Pipe (Nanfei Water and 2 31.45 3 Electricity) Valves, fire protection, metalware, water 3 33.15 4 and electricity shops Chint Electric (Dongxing 4 66.3 7 Electromechanical Equipment Co., Ltd) Liansu Pipeline (Xudong Water and 5 33.15 3 Electricity Shop) Ginde Plastic Pipe (Changyuan Power 6 33.15 4 Water Pipe Shop) 7 Ganchang Wires and Cables 33.15 5 Jiangxi Sales Company of CNC Electric 8 66.3 8 Group 9 Liansu Pipeline 33.15 3 Hong Yan Cable Switch (Business 10 Department for Xiangsu and Sipu 41.6 4 Building Materials) 11 Pacific Fiber 28.8 5 12 Bearing Shop 28.8 3 13 Yatong Pipe (Xinwang Water Heating) 57.6 8 Nanchang Sales Center of Cherry Flower 14 28.8 4 Electric Company)

142 Enameled wire and insulation material 15 28.8 4 (Zhenda Industrial Corporation) 16 Gree Water Heater Store 28.8 5 17 Cable Bridge Store 27.52 4 18 China Huanyu Group Electric Switch 25.73 5 19 Shanghai Huatong Electricity 25.73 3 20 Tengwangge Bathroom Supplies 25.73 3 21 Weixing Pipe (Beiling Water Heating) 25.73 5 22 Tianyu Material Supply 25.73 4 23 Taurus Tube Industry Group 25.73 3 24 Gudi Industry Group 20.15 3 25 Joeone Faucet 20.15 4 26 Ginde Plastic Pipe 20.15 3 27 Lushi Stationer’s 20.15 3 28 Anan Stationer’s 41.7 3 29 Qibeitu Beverage Shop 12.1 3 30 Langneng Architecture Electric 12.1 3 31 Ganchang Electric Wire 42.2 5 32 Ningda Water Heating 30.6 4 33 Liulian Milk Tea 17.94 3 34 AA International Comic Store 37.53 3 35 TCL-LGL Electric 30.6 3 36 Ginde Plastic Pipe 48.8 4 37 Lingyi Lifting Hanger Shop 42.7 4 38 Siemon Cable 42.7 4 Dulux Paint (Hongtai Building Material 39 42.7 4 Shop) 40 Taurus Tube Industry Group 19.6 3 41 Piersa Pipe Industry Group 42.7 3 42 Garden Hardware Store 43.92 4 43 Piersa Pipe (Panda Wire) 87.84 7 44 Meijingshi Paint 43.92 3 45 Jiali Water Heating 43.92 4 46 Weixing Pipe 43.92 4 47 Chang’an Wire 43.92 4

143 48 Sun-Swan Bathroom Supplies 43.92 3 49 Cable Bridge Shop 20.7 4 50 Huifa Fast Print 43.92 4 51 Huarun Paint 42.7 3 52 Furong Pipe for Bathroom Supply 42.7 4 53 Bull Safety Socket 22.94 4 54 Philips Electric 22.94 4 55 Nippon Paint 30.17 5 56 Nippon-Carpoly Paint 36.54 5 57 Ginde Plastic Pipe 26.32 5 58 Jiangsu Piersa Water Pipe 43.24 4 59 Lianfeng Electrical Co., Ltd 43.24 5 60 TCL-LGL Electric 29.61 3 61 TCL-LGL Electric 26.32 4 62 Water Doctor Pipe 44.18 5 Sales Department of Shunda Havc and 63 15.04 3 Venting Accessories 64 Rifeng Pipe and Ganchang Wire 29.61 3 65 Jiangsu Piersa Water Pipe 40.89 4 Subtotal up to Dinggong South Road 1552.03 260 Bus Stop Total 201 858

144 Appendix 2: Due Diligence Report on the Resettlement Work for Land Acquisition in Nanchang Railway Station and Bayi Square Station of NCRT Line 2 Phase I Project 1. Project Summary 1. World Bank Funded NCRT The project starts from Zhanqiannandadao Station and ends at Xinjiaan Station, covering a length of 23.3km and 21 stations. 2. In August, 2012, in response to the requirements of World Bank, Nanchang rail transit construction headquarters prepared the Resettlement Action Plan of the NCRT The project so as to apply for funding from the World Bank. In the project , Nanchangxi Railway Station, Nanchang Railway Station and Bayi Square had started construction in advance since they were involved in other construction projects. Among them, Nanchangxi Railway Station takes up 6.45mu land with no house demolition or relocation involved, while the rest two involve land acquisition and house relocation, and both have been completed during 2011 and 2012. The project Management Office of Nanchang Rail Transit prepares this due diligence report on the resettlement work in Nanchang Railway Station and Bayi Square Station to introduce the land acquisition in these two stations, and ensure that the resettlement is carried out in compliance with laws and regulations of Nanchang City, Jiangxi Province and the People’s Republic of China, as well as with security policies of the World Bank. 2 Quantity of Land Acquisition and House Demolition Nanchang Railway Station of NCRT The project takes up land of 6.21mu, all of which is state-owned construction land. The station locates under the ground of East Square of Nanchang Railway Station, and the demolition of its ground buildings was finished along with the land acquisition and house demolition for East Square construction, which finished in 2011, covering 104 households with an area of 5335m2. Bayi Square Station of NCRT The project takes up land of 8.35mu, all of which is state-owned construction land. The station locates at the Bayi Square in central urban Nanchang City, and it transfers to the Rail Transit Line 1 under construction. The demolition of ground buildings was finished along with the land acquisition and house

145 demolition for Line 1 construction. The demolition work for Bayi Square Station finished in June, 2012, covering 108 households with an area of 9637.65m2 and 3 enterprises and companies with an area of 18484.07m2. 3. Resettlement Organizations In order to ensure good resettlement performance, Nanchang City sets up rail transit construction headquarters, district acquisition compensation offices and resettlement organizations under execution of Sub-district resettlement offices and clarifies their responsibilities. Major resettlement organizations are: ●Nanchang City Rail Transit Construction Headquarters ●Nanchang City Rail Transit Project Management Office ●District Acquisition Compensation Office ●Sub-district Resettlement Office

Nanchang City Rail Transit Construction Headquarters

Nanchang City Rail Transit Project Management Office

Acquisition Compensation Office

Sub-district (office of township) Resettlement Office

Affected Enterprises, Companies and Households

Responsibility of each organization: Nanchang City Rail Transit Construction Headquarters Comprehensively lead project preparation and implementation Make decisions on major resettlement policies Coordinate between resettlement organizations and related governmental authorities Nanchang City Rail Transit Project Management Office Entrust investigation and design agencies and join them to measure the impact of

146 resettlement; conduct demographic statistics and save the data; provide training for resettlement personnel going to use the data. Apply to related authorities for land use, planning and construction permits Formulate policies for resettlement action plan Carry out training for personnel of district acquisition compensation offices Coordinate implementation schedules of project construction and resettlement action plan Sign resettlement contracts with land administration department and people’s government of each district Supervise fund allocation and payment Guide and supervise the implementation of resettlement plan Coordinate between resettlement organizations Supervise resettlement activities Review supervision report Provide resettlement budget Handle complaints and appeals of relocated households District acquisition compensation office Organize resettlement work of the district Guide and supervise sub-district resettlement offices Accept and management resettlement fund allocated by Project Management Office Issue compensation to affected families and enterprises Provide training for personnel of sub-district resettlement office Report the work to Project Management Office Handle various issues during the resettlement process, and reflect complaints and appeals from relocated households to superior resettlement organizations. Sub-district resettlement office Participate in investigation and other necessary organizational works for resettlement Organize citizens of the sub-district to participate in the resettlement negotiations. Examine, supervise and record all the resettlement activities within area of responsibility

147 Review and report the acquisition and relocation data of the sub-district Supervise and implement land acquisition, reconstruction and moving of buildings and attachments, enterprises and residences. Handle various issues during the resettlement process, and reflect complaints and appeals from relocated households to superior resettlement organizations. 4. Resettlement Policies Land acquisition and house demolition of Nanchang Railway Station and Bayi Square Station includes demolition of private residences, and nonresidential buildings of enterprises and companies on state-owned land. Nanchang City formulated the Renovation of Nanchang Station in Nanchang-Jiujiang High-speed Railway and House Demolition Resettlement for Nanchang Railway Station East Square and the House Demolition Resettlement Plan on State-owned Land of Nanchang Rail Transit Line 1 Construction Project. The main points of these two policies are: 1. Resettlement policy for demolition of private residence 1) The owners of the expropriated houses can choose from the two compensation methods, monetary compensation or house property right exchange.Affected families near East Square can be relocated in the resettlement complex which is formerly Tongda Company of Nanchang Railway Bureau, while families affected by Bayi Square can choose property right exchange of resettlement housing in Phoenix Home and Chaoyang New Town communities. 2) If the persons whose houses are expropriated choose monetary compensation, compensation for the value of the expropriated house shall be paid according to estimated market value. Real estate appraisal agency shall be chosen and determined by the persons whose house is expropriated through negotiation; if negotiation fails, it shall be determined by majority decision or random decision. 3) If the persons whose houses are expropriated choose property exchange method, resettlement work shall be carried out according to the building area of the expropriated houses in the principles of “one resettlement house for one demolished house”, “appraisals for both demolished house and resettlement house”, “mutual payment of price difference” and “resettlement house with area closest to the area of the demolished house”. For the part with equivalent area, the principles of “appraisals for both demolished house and resettlement house” and “mutual payment of price difference”

148 shall be followed. When the resettlement house is the house type with the area closest to the area of the demolished house, if the building area of resettlement house is larger than that of demolished house, the exceeding part shall be paid according to cost price; if the building area of resettlement house exceeds the area of the house type closest to the demolished house, the exceeding part shall be paid according to the estimated market value of the resettlement house. 4) For the relocated households who sign the compensation agreement and move out within the specified time limit, the earlier moving out and delivering the house, the more priority in selecting the resettlement houses. 5) Decoration compensation shall be confirmed by entrusting real estate appraisal agency. 6) Relocation allowance: if the building area of the expropriated house is below 100 m2, each household shall be paid 500 Yuan for each time of relocation; if over 100 m2, each household shall be paid 500 Yuan for each time of relocation and 3 Yuan per square meter for the excessive area. 7) Temporary relocation allowance: for choice of property right exchange, the allowance shall be paid as 13.5 Yuan/m2/month according to the building area within the regulated or agreed temporary resettlement period; if the total payment of one household is less than 600Yuan, the allowance shall be accounted as 600Yuan. Temporary resettlement period shall be 24 months at maximum; for choice of monetary compensation or property right exchange of ready housing, 6 months’ allowance as 13.5 Yuan per month per square meter of the building area of expropriated house shall be paid in one-off method. If the total payment of one household is less than 600Yuan, the allowance shall be accounted as 600Yuan. 8) Relocation rewards: (1) When the persons whose houses are expropriated choose monetary compensation, if signing the compensation agreement within the specified time limit and moving out and delivering the house on time, they shall be compensated according to the estimated market value plus 20% as relocation rewards; (2) If signing the compensation agreement and finishing relocation within 60 days upon the release of relocation notice, compensation shall be paid according to the estimated market value plus 20% as relocation rewards; if signing the compensation agreement and finishing relocation within 61-120 days upon the release of relocation notice,

149 compensation shall be paid according to the estimated market value plus 10% as relocation rewards; if signing the compensation agreement and finishing relocation within 121-180 days upon the release of relocation notice, compensation shall be paid according to the estimated market value plus 5% as relocation rewards. 9) The monetary compensation received by the relocated household shall be exempted from individual income tax; if the relocated household chooses to purchase new house, the part in the purchase price that is equivalent to the monetary compensation shall be exempted from deed tax 10) Compensation for house attachments: cable TV: 120 Yuan per household, fixed-line telephone: 128 Yuan per household, broadband removal: 200 Yuan per line, split type wall mounted air conditioner: 300 Yuan/set, split type floor standing air conditioner: 500 Yuan/set, electric and gas heater: 100 Yuan/set, solar heater: 400 Yuan/set and pipeline gas when monetary compensation method is selected: 3200 Yuan per household. 2. Compensation policy for the demolition of nonresidential buildings 1) Monetary compensation shall be carried out according to the estimated market value. 2) Decoration compensation shall be confirmed by entrusting real estate appraisal agency. 3) Relocation compensation shall be paid by 5Yuan/m2 or be confirmed by entrusting real estate appraisal agency. 4) For production or business suspension caused by house expropriation, minimum wages for 6 months shall be compensated in full at one time according to the actual number of employees registered in business license. 5) Allowances and rewards: when the expropriated is nonresidential houses used for business, if monetary compensation is chosen, the compensation for production or business suspension shall be paid for additional 6 months as rewards; when the expropriated is nonresidential houses not used for business, if monetary compensation is chosen, the temporary relocation compensation shall be paid for 6 additional months as rewards. The temporary relocation compensation shall be subject to the standard for the private houses, that is, 13.5 Yuan/m2/month based on the building area of the expropriated house, one-off payment of 6 months. If the total amount of each household

150 is less than 600 Yuan, the temporary relocation compensation shall be 600 Yuan. 5. Compensation and Resettlement of Affected Households and Enterprises According to the data of the acquisition compensation office of Qingshanhu District, all the 104 relocated households choose property right exchange and be resettled in the complex which is formerly the Tongda Company of Nanchang Railway Bureau.

Property Right Exchange Agreement signed by Relocated households from East Square construction of Nanchang Railway Station

151

Basically completed Resettlement Housing in the Tongda Company Resettlement Complex

According to on-site observation, Tongda Company Resettlement Complex resettlement for East Square relocated families is under construction. 3 residential buildings of the total 8 buildings have been finished and can be moved in the near future. The rest 5 buildings are expected to be completed in June, 2013. Through interviews of relocated families, they are satisfied with the open and transparent resettlement process, and express their gratitude for moving out from low and old shanties into nicely-surrounded and well-structured houses. They especially mentioned that they are provided with multiple house types with various areas for choice, and during the process of “one resettlement house for one demolished house” the price for excessive area is 4,200 to 4,499 Yuan/m2, while the market price of surrounding real estate is about 10,000 Yuan/m2. Basically they are satisfied with the resettlement policy of the project .

152

Information on resettlement fees is open for the choice of relocated households Relocation of Bayi Square Station started in 201. Since the monetary compensation is paid as 11000Yuan/ m2 which is 3000-4000Yuan higher than the average local market price, all the 118 households chose monetary compensation. All the relocated families have received their monetary compensations, and bought second-hand residences or new commercial residential buildings. Refer to appendix for the details of monetary compensation. For affected enterprises and companies, three enterprises, namely ICBC branch in West Being Road, Cadre Training Center of Jiangxi Province Health Department and Jiangxi Xinhua Publishing Group Co., Ltd. are affected by the Bayi Square Station construction. After negotiation, the following compensation and resettlement methods are reached: Cadre Training Center of Jiangxi Province Health Department is provided with monetary compensation, and the bank shall choose land by itself to resume operation. The other two enterprises will repurchase in the real estate development projects after the construction of Bayi Square Station to recover operation and previous conditions. Up till now, a Xinhua Bookstore under Jiangxi Xinhua Publishing Group Co., Ltd. has reopened near the Jiangxi Exhibition Center.

153

Demolition in Bayi Square has already finished and the railway station is under construction

The relocated Xinhua Bookstore continues business near the Exhibition Center

6. Conclusion and Suggestions Based on document investigation, on-site observation and reviews of affected households in the resettlement work of Nanchang Railway Station East Square and Bayi Square Station constructed during year 2009 and 2012, it reaches the following evaluations on the resettlement work: First, the land acquisition and house demolition policies for Nanchang Railway Station East Square and Bayi Square Station are formulated in compliance with relevant laws and regulations of Nanchang City, Jiangxi Province and the People’s Republic of

154 China. Second, the land acquisition, and house demolition and resettlement of Nanchang Railway Station East Square and Bayi Square Station are coordinated by the affected persons. The entire process is open and transparent with full participation of affected households with zero legal disputes. Third, all the affected households of Nanchang Railway Station East Square chose property right exchange for the resettlement houses in the complex which is formerly Dongta Company of Nanchang Railway Bureau, and all will move in their new house in 2013. “One resettlement house for one demolished house” policy is adopted, and relocated families can choose nearby resettlement houses with area equivalent to their demolished ones, and purchase the part with excessive area by price far lower than that of surrounding real estate houses, so basically they are very satisfied with it. Fourth, all the 118 households affected by Bayi Square Station choose monetary compensation. All have signed the compensation agreement and received all the due compensations. All the affected households are satisfied with the compensation standard, since the compensation is sufficient for them to buy another house according to the local market price.

155