Public Disclosure Authorized SOCIAL ASSESSMENT REPORT FOR
THE WORLD BANK FUNDED
GANSU INTEGRATED RURAL ECONOMIC DEVELOPMENT DEMONSTRATION TOWN PROJECT
Public Disclosure Authorized
Public Disclosure Authorized
GANSU PROVINCIAL DEVELOPMENT AND REFORM COMMISSION Public Disclosure Authorized
LANZHOU , G ANSU
NOV . 2011
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CONTENTS
1. FOREWORD ...... 1
1.1 B ACKGROUND OF SA ...... 1 1.2 T ASKS OF SA ...... 1 1.3 O BJECTIVES OF SA ...... 2 1.4 B ASIS OF SA ...... 3 1.5 M ETHODOLOGY OF SA ...... 5 1.5.1 Types of assessment data ...... 5 1.5.2 Key points of fieldwork ...... 7 1.5.3 Key principles of fieldwork ...... 8 1.5.4 Methodology of fieldwork ...... 9 1.6 M ETHODOLOGY OF DATA ANALYSIS ...... 14 1.7 T ECHNICAL ROUTE OF SA ...... 16 2. BACKGROUND OF THE PROJECT ...... 17
2.1 S IGNIFICANCE AND NECESSITY OF THE PROJECT ...... 17 2.2 O BJECTIVES OF THE PROJECT ...... 19 2.3 D URATION OF PROJECT IMPLEMENTATION ...... 19 2.4 E XPECTED INVESTMENT OF THE PROJECT ...... 19 2.5 S ELECTION OF DEMONSTRATION TOWNS ...... 20 2.6 O VERALL SCOPE AND SIZE OF THE PROJECT ...... 23 2.7 O RGANIZATIONAL AND MANAGEMENT STRUCTURE OF THE PROJECT ...... 26 3. SOCIOECONOMIC PROFILE OF THE PROJECT AREAS ...... 28
3.1 D ONGWAN TOWN ...... 28 3.1.1 Basic information ...... 28 3.3.2 Existing development issues ...... 29 3.3.3 Main scope of construction ...... 30 3.2 H ONGSHUI TOWN ...... 31 3.2.1 Basic information ...... 31 3.2.2 Existing development issues ...... 32 3.2.3 Main scope of construction ...... 33 3.3 H ONGWANSI TOWN ...... 34 3.3.1 Basic information ...... 34 3.3.2 Existing development issues ...... 36 3.3.2 Main scope of construction ...... 36 4. STAKEHOLDER ANALYSIS ...... 39
4.1 I DENTIFICATION CRITERIA OF STAKEHOLDERS ...... 39 4.2 K EY STAKEHOLDERS ...... 39 4.3 I MPACT AND DEMAND ANALYSIS OF KEY STAKEHOLDERS ...... 40 4.3.1 Provincial PMO ...... 40 4.3.2 County PMOs ...... 41 4.3.3 Town PMOs ...... 42 4.3.4 Government functional departments ...... 43 4.3.5 Communities ...... 43 4.3.6 Ordinary farmers, herdsmen and residents ...... 45 4.3.7 Households affected by land acquisition and property demolition ...... 48 4.3.8 Traders ...... 49 4.3.9 Enterprises ...... 50 4.3.10 Industry associations/cooperatives ...... 54 4.3.11 Brokers ...... 56 5. SOCIAL IMPACT ASSESSMENT ...... 60
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5.1 P OSITIVE ECONOMIC IMPACTS ...... 60 5.1.1 Dongwan Town ...... 60 5.1.2 Hongshui Town ...... 65 5.1.3 Hongwansi Town ...... 70 5.2 A BILITY AND WILLINGNESS TO PAY ...... 75 5.2.1 Dongwan Town ...... 76 5.2.2 Hongshui Town ...... 77 5.2.3 Hongwansi Town ...... 78 5.3 S OCIAL IMPACTS ...... 83 5.3.1 Institutional capacity building ...... 83 5.3.2 Capacity building of affected groups ...... 88 5.3.3 Impacts on community management and decision-making capacity ...... 89 5.3.4 Religious and cultural impacts ...... 89 5.3.5 Social gender impact analysis ...... 91 5.4 E NVIRONMENTAL IMPACTS ...... 94 5.4.1 Dongwan Town ...... 94 5.4.2 Hongshui Town ...... 95 5.4.3 Hongwansi Town ...... 95 6. ETHNIC MINORITY ANALYSIS ...... 97
6.1 SUMMARY OF POLICIES FOR ETHNIC MINORITIES IN THE PROJECT AREA ...... 97 6.1.1 Applicable laws and regulations ...... 97 6.1.2 Policy framework for ethnic minorities ...... 98 6.2 I NTRODUCTION TO AFFECTED ETHNIC MINORITIES...... 103 6.2.1 Yugu people ...... 105 6.2.2 Tibetans ...... 108 6.2.3 Hui people ...... 110 6.3 I MPACTS OF THE PROJECT ON ETHNIC MINORITIES ...... 112 6.4 I DENTIFICATION OF ETHNIC MINORITIES ...... 114 7. SOCIAL RISK ASSESSMENT ...... 117
7.1 E CONOMIC RISKS ...... 117 7.1.1 Dongwan Town ...... 117 7.1.2 Hongshui Town ...... 119 7.1.3 Hongwansi Town ...... 120 7.2 S OCIAL RISKS ...... 123 7.2.1 Dongwan Town ...... 123 7.2.2 Hongshui Town ...... 124 7.2.3 Hongwansi Town ...... 127 7.3 ENVIRONMENTAL RISKS ...... 129 7.3.1 Dongwan Town ...... 129 7.3.2 Hongshui Town ...... 129 7.3.3 Hongwansi Town ...... 129 7.4 O RGANIZATION AND MANAGEMENT RISKS ...... 129 8. COMMUNITY PARTICIPATION ...... 133
8.1 P RESENT SITUATION OF COMMUNITY PARTICIPATION ...... 133 8.1.1 Project awareness survey ...... 133 8.2.2 Project recognition survey ...... 135 8.2 C OMMUNITY PARTICIPATION AND ITS ROLE DURING ASSESSMENT ...... 138 8.2.1 Dongwan Town ...... 138 8.2.2 Hongshui Town ...... 139 8.2.3 Hongwansi Town ...... 140 8.3 C OMMUNITY PARTICIPATION FRAMEWORK ...... 145 8.3.1 Dongwan Town ...... 145 8.3.2 Hongshui Town ...... 155 8.3.3 Hongwansi Town ...... 165
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9. APPEAL HANDLING ...... 177
9.1 S UBJECTS OF APPEAL ...... 177 9.2 S COPE OF APPEAL ...... 178 9.2.1 By appellant ...... 178 9.2.2 By appellee ...... 179 9.2.3 By time of appeal ...... 180 9.2.4 By point of appeal ...... 181 9.3 P RINCIPLES OF APPEAL AND HANDLING ...... 181 9.4 M ODES OF APPEAL ...... 183 9.4.1 Oral/written ...... 183 9.4.2 Rational/irrational ...... 183 9.4.3 Non-public/public ...... 183 9.4.4 Level by level/cross-level ...... 184 9.5 M ODES OF APPEAL HANDLING ...... 184 9.5.1 Self-mediation ...... 184 9.5.2 Community mediation ...... 185 9.5.3 Mediation/handling at the project level ...... 185 9.5.4 Mediation/handling at the administrative level ...... 185 9.5.5 Judicial mediation or judgment ...... 185 9.6 R ESPONSIBILITIES AND OBLIGATIONS OF SUBJECTS OF APPEAL ...... 187 9.6.1 Appellant ...... 187 9.6.2 Appellee ...... 187 9.6.3 Accepting and handling agencies ...... 188 9.7 P ROVISIONS AND MANAGEMENT OF APPEALS ...... 189 9.7.1 Application for appeal ...... 189 9.7.2 Handling of appeals ...... 189 9.7.3 Appeal information management ...... 190 9.7.4 Disclosure of appeal information ...... 191 10. RISK MITIGATION MEASURES ...... 193
10.1 D ONGWAN TOWN ...... 193 10.1.1 Mitigation measures of economic risks ...... 193 10.1.2 Mitigation measures of social risks ...... 193 10.1.3 Mitigation measures of environmental risks ...... 194 10.1.4 Mitigation measures of organizational and management risks ...... 194 10.2 H ONGSHUI TOWN ...... 195 10.2.1 Mitigation measures of economic risks ...... 195 10.2.2 Mitigation measures of social risks ...... 195 10.2.3 Mitigation measures of environmental risks ...... 196 10.2.4 Mitigation measures of organizational and management risks ...... 196 10.3 H ONGWANSI TOWN ...... 196 10.3.1 Mitigation measures of economic risks ...... 196 10.3.2 Mitigation measures of social risks ...... 197 10.3.3 Mitigation measures of environmental risks ...... 198 10.3.4 Mitigation measures of organizational and management risks ...... 198 11. SOCIAL ACTION PLAN AND MONITORING ...... 200
11.1 S OCIAL ACTION PLAN OF DONGWAN TOWN AND MONITORING ...... 201 11.2 S OCIAL ACTION PLAN OF HONGSHUI TOWN AND MONITORING ...... 204 11.3 S OCIAL ACTION PLAN OF HONGWANSI TOWN AND MONITORING ...... 208 11.4 N OTES TO FINANCIAL BUDGET ...... 212 11.5 O RGANIZATIONAL ARRANGEMENTS ...... 212 12. CONCLUSIONS AND SUGGESTIONS ...... 216
12.1 K EY CONCLUSIONS ...... 216 12.2 K EY SUGGESTIONS ...... 216
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APPENDIXES: ...... 218
APPENDIX 1: EMDP ...... 218 APPENDIX 2: C OMMUNITY PARTICIPATION HANDBOOK ...... 218 APPENDIX 3: A PPEAL HANDLING MECHANISM ...... 218 APPENDIX 4: A GENDA OF FIELDWORK OF SA ...... 218
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LIST OF TABLES AND FIGURES
TABLE 1: B ASIS OF SA ...... 3 TABLE 2: S UMMARY OF MATERIALS USED FOR SA ...... 5 TABLE 3: SUMMARY OF WORKLOAD OF FIELD SURVEY ...... 9 TABLE 4: S UMMARY OF WORKLOAD OF SEMI -STRUCTURED INTERVIEWS...... 10 TABLE 5: S UMMARY OF WORKLOAD OF KEY INFORMANT INTERVIEWS ...... 11 TABLE 6: S UMMARY OF WORKLOAD OF FGD S...... 12 TABLE 7: S UMMARY OF BASIC INFORMATION OF QUESTIONNAIRE SURVEY...... 13 TABLE 8: S UMMARY OF BASIC INFORMATION OF FIELD SURVEY ...... 13 TABLE 9: N ATIONAL AND GANSU DATA ON ETHNIC GROUP POPULATION ...... 18 TABLE 10: L IST OF DEMONSTRATION TOWNS IN THE PROJECT ...... 21 TABLE 11: K EY SOCIOECONOMIC DEVELOPMENT INDICATORS OF SOME DEMONSTRATION TOWNS (I) ...... 21 TABLE 12: K EY SOCIOECONOMIC DEVELOPMENT INDICATORS OF SOME DEMONSTRATION TOWNS (II) ...... 22 TABLE 13: D ISTRIBUTION OF PROJECT COMPONENTS IN DEMONSTRATION TOWNS ...... 24 TABLE 14: I NCOMPLETE STATISTICS OF MAIN SCOPE OF CONSTRUCTION AND INDICATORS OF DEMONSTRATION TOWNS (I) ...... 24 TABLE 15: I NCOMPLETE STATISTICS OF MAIN SCOPE OF CONSTRUCTION AND INDICATORS OF DEMONSTRATION TOWNS (II) ...... 25 TABLE 16: A REAS DIRECTLY AFFECTED BY THE DONGWAN TOWN SUBPROJECT AND THEIR CHARACTERISTICS ...... 31 TABLE 17: A REAS DIRECTLY AFFECTED BY THE HONGSHUI TOWN SUBPROJECT AND THEIR CHARACTERISTICS ...... 34 TABLE 18: A REAS DIRECTLY AFFECTED BY THE HONGWANSI TOWN SUBPROJECT AND THEIR CHARACTERISTICS ...... 38 TABLE 19: S TAKEHOLDERS INVOLVED IN THE PROJECT ...... 39 TABLE 20: C LASSIFICATION OF AFFECTED COMMUNITIES IN 3 DEMONSTRATION TOWNS ...... 44 TABLE 21: S UMMARY OF AFFECTED FARMERS , HERDSMEN AND RESIDENTS ...... 45 TABLE 22: S TATISTICS OF HOUSEHOLDS AFFECTED BY LAND ACQUISITION AND PROPERTY DEMOLITION ...... 48 TABLE 23: S UMMARY OF AFFECTED TRADERS ...... 50 TABLE 24: S UMMARY OF NUMBERS OF AFFECTED ENTERPRISES AND TYPES OF IMPACT IN DEMONSTRATION TOWNS ...... 50 TABLE 25:S UMMARY OF AFFECTED INDUSTRY ASSOCIATIONS /COOPERATIVES ...... 54 TABLE 26: S UMMARY OF AFFECTED RURAL BROKERS ...... 57 TABLE 27: S EASONAL CALENDAR FOR SUNLIGHT GREENHOUSE VEGETABLE CULTIVATION IN DONGWAN TOWN ...... 63 TABLE 28: S URVEY OF ABILITY /WILLINGNESS TO PAY OF RURAL HOUSEHOLDS IN HONGSHUI TOWN ...... 77 TABLE 29: S URVEY OF ABILITY /WILLINGNESS TO PAY OF FARMERS , HERDSMEN AND RESIDENTS IN HONGWANSI TOWN .79 TABLE 30: S UMMARY OF ABILITY /WILLINGNESS TO PAY OF TARGET GROUPS OF THE PROJECT ...... 81 TABLE 31:S UMMARY OF INSTITUTIONAL CAPACITY BUILDING ACTIVITIES ...... 85 TABLE 32:I MPACT ANALYSIS OF THE TRAINING COMPONENT ...... 88 TABLE 33: D IVISION OF LABOR BY GENDER IN THE PRODUCTION PROCESS OF SUNLIGHT GREENHOUSE VEGETABLE CULTIVATION ...... 91 TABLE 34: D IVISION OF LABOR BY GENDER IN HUI COMMUNITIES DIRECTLY AFFECTED BY THE PROJECT ...... 92 TABLE 35:D IVISION OF LABOR BY GENDER OF AFFECTED FARMERS , HERDSMEN AND RESIDENTS IN HONGWANSI TOWN .93 TABLE 36: P OLICY FRAMEWORK FOR ETHNIC MINORITIES ...... 99 TABLE 37: C OMPOSITION OF ETHNIC MINORITY POPULATION IN TWO DEMONSTRATION TOWNS ...... 103 TABLE 38: C OMPOSITION OF ETHNIC MINORITY POPULATION IN DIFFERENT COMMUNITIES OF HONGWANSI TOWN ....104 TABLE 39: C OMPOSITION OF ETHNIC MINORITY POPULATION IN DIFFERENT COMMUNITIES OF HONGSHUI TOWN ...... 104 TABLE 40: K EY INDICATORS OF POPULATION AND DISTRIBUTION OF YUGU PEOPLE ...... 105 TABLE 41: K EY INDICATORS OF POPULATION AND DISTRIBUTION OF TIBETANS IN THE PROJECT AREAS ...... 108 TABLE 42: M AIN TYPES AND MODES OF BENEFITS OR LOSSES OF ETHNIC MINORITIES FROM THE PROJECT ...... 112 TABLE 43: S UMMARY OF MODES AND DEGREES OF IMPACT OF THE PROJECT ON DIFFERENT ETHNIC MINORITIES ...... 114 TABLE 44: I DENTIFICATION OF ETHNIC MINORITIES ...... 115 TABLE 45: L AND RESOURCES OF HUI COMMUNITIES IN HONGSHUI TOWN ...... 125 TABLE 46: A LLOCATION OF FORAGE BASE CONSTRUCTION AND FINE BREED EXTENSION OF MUTTON SHEEP TO COMMUNITIES IN HONGSHUI TOWN ...... 125 TABLE 47: P ROJECT AWARENESS OF SURVEYED STAKEHOLDERS ...... 134 TABLE 48: P ROJECT AWARENESS SURVEY OF FARMERS , HERDSMEN AND RESIDENTS IN SAMPLE COMMUNITIES ...... 134 TABLE 49: P ROJECT AWARENESS SURVEY OF FARMERS , HERDSMEN AND RESIDENTS IN SAMPLE COMMUNITIES IN HONGWANSI TOWN ...... 135
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TABLE 50: P ROJECT RECOGNITION SURVEY OF STAKEHOLDERS ...... 136 TABLE 51: S URVEY OF RECOGNITION OF INTEGRATED BAZAAR RECONSTRUCTION AMONG ETHNIC MINORITIES IN THE SAMPLE COMMUNITIES OF HONGWANSI TOWN ...... 136 TABLE 52: R ECOGNITION SURVEY OF ETHNIC MINORITIES FOR QILIAN JADE PROCESSING ZONE CONSTRUCTION IN SAMPLE COMMUNITIES OF HONGWANSI TOWN ...... 137 TABLE 53: S URVEY OF RECOGNITION OF THE ETHNIC CHARACTERISTIC PRODUCT PROCESSING AND STARTUP TRAINING CENTER AMONG ETHNIC MINORITIES IN THE SAMPLE COMMUNITIES OF HONGWANSI TOWN ...... 137 TABLE 54: C OMPARISON OF MAIN SCOPE OF CONSTRUCTION BEFORE AND AFTER COMMUNITY PARTICIPATION IN THE SA ...... 142 TABLE 55: L OGIC FRAMEWORK OF THE DONGWAN TOWN SUBPROJECT (P ART 1) ...... 145 TABLE 56: L OGIC FRAMEWORK OF THE DONGWAN TOWN SUBPROJECT (P ART 2) ...... 151 TABLE 57: L OGIC FRAMEWORK OF THE HONGSHUI TOWN SUBPROJECT (P ART 1) ...... 155 TABLE 58: L OGIC FRAMEWORK OF THE HONGSHUI TOWN SUBPROJECT (P ART 2) ...... 161 TABLE 59: L OGIC FRAMEWORK OF THE HONGWANSI TOWN SUBPROJECT (P ART 1) ...... 165 TABLE 60: L OGIC FRAMEWORK OF THE HONGWANSI TOWN SUBPROJECT (P ART 2) ...... 172 TABLE 61: L IST OF STAKEHOLDERS INVOLVED IN APPEAL HANDLING ...... 177 TABLE 62: S OCIAL ACTION PLAN FOR THE DONGWAN TOWN SUBPROJECT ...... 201 TABLE 63: S OCIAL ACTION PLAN FOR THE HONGSHUI TOWN SUBPROJECT ...... 204 TABLE 64: S OCIAL ACTION PLAN FOR THE HONGWANSI TOWN SUBPROJECT ...... 208 TABLE 65: S UMMARY OF OBLIGATIONS AND RESPONSIBILITIES OF DIFFERENT AGENCIES IN THE IMPLEMENTATION OF THE SOCIAL ACTION PLAN ...... 212 TABLE 66: O RGANIZATIONAL ARRANGEMENTS FOR M&E ...... 215
FIGURE 1: T ECHNICAL ROUTE OF SA ...... 16 FIGURE 2: O RGANIZATIONAL CHART OF THE PROJECT ...... 27 FIGURE 3: L OGIC RELATIONS BETWEEN THE PROJECT AND FARMING AND STOCKBREEDING OF HONGSHUI TOWN ...... 66 FIGURE 4: F LOWCHART OF APPEAL HANDLING MECHANISM ...... 187
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ABBREVIATIONS
CPC - Communist Party of China
EMDP - Ethnic Minority Development Plan
EMP - Environmental Management Plan
FS - Feasibility Study
FGD - Focus Group Discussion
MLS - Minimum Living Security
M&E - Monitoring and Evaluation
O&M - Operation and Management
PMO - Project Management Office
PRA - Participatory Rural Appraisal
RAP - Resettlement Action Plan
SA - Social Assessment
UNITS
Currency unit = Yuan (RMB)
1.00 Yuan = $0.15
1 hectare = 15 mu
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1. Foreword
1.1 Background of SA
According to the preliminary social scanning and identification of the World Bank-funded Gansu Integrated Rural Economic Development Demonstration Town Project (hereinafter referred to as the “Project”) by the World Bank Identification Mission, the social assessment (SA) of the Project is based mainly on the following two considerations:
1) The proposed components of the demonstration towns are mostly closely associated with local pillar industry development, economic structuring and integrated social development, and involve complex stakeholders, and complex possible socioeconomic benefits and potential socioeconomic risks; therefore, a detailed SA should be conducted to address the above issues.
2) Among the proposed 12 demonstration towns, the subprojects of Hongwansi and Hongshui Town involve Yugu, Tibetan and Hui people. According to the Bank policy OP4.10 Indigenous Peoples , it is necessary to prepare a special Ethnic Minority Development Plan (EMDP) for the two project towns. The basis of EMDP preparation is a detailed SA.
According to the Project’s practical conditions, the Memorandum of the World Bank Identification Mission states that a demonstration town/subproject will be selected from the 12 proposed demonstration towns for SA through “participation and consultation” activities at the preparation stage, and a “Community Participation Handbook” will be prepared, which includes an “Appeal Handling Mechanism”, so as to implement the Project more effectively.
1.2 Tasks of SA
In the Project, Hongshui and Hongwansi Towns involve Hui, Yugu and Tibetan people, triggering the Bank policy OP4.10 Indigenous Peoples . According to this policy, an EMDP should be prepared for the two towns. As the basis of EMDP preparation, SA will be conducted on Hongshui and Hongwansi Towns first.
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The Project involves 12 demonstration towns. Except that Hongshui and Hongwansi Towns should be subject to SA due to their involvement of ethnic minorities, the World Bank Identification Mission suggested that a representative one be selected from the other 10 demonstration towns for a detailed SA in order to facilitate project activities. Through the social scanning of the other demonstration towns by the World Bank Identification Mission, it was finally decided that Dongwan Town, JingYuan County be selected as a demonstration town for this SA.
The tasks of this SA include the preparation of the following documents required for project application and approval:
- SA Report (including the three subprojects of Dongwan, Hongshui and Hongwansi Towns)
- EMDP (including the two subprojects of Hongshui and Hongwansi Towns)
- Community Participation Handbook (including the three subprojects of Dongwan, Hongshui and Hongwansi Towns)
- Appeal Handling Mechanism (including the three subprojects of Dongwan, Hongshui and Hongwansi Towns)
1.3 Objectives of SA
This SA is intended to describe the socioeconomic situation of the project areas and the target groups, the potential socioeconomic benefits and risks of the proposed components, a possible action plan that gives full play to the potential socioeconomic benefits of the Project, and benefits different stakeholder groups (especially ethnic minorities and vulnerable groups), and possible action measures that avoid potential socioeconomic risks and protect different stakeholder groups (especially ethnic minorities and vulnerable groups) from losses to the greatest extent, thereby providing a basis for improving the project design, and developing feasible and appropriate project implementation programs. The objectives of SA are to:
1) Evaluate the socioeconomic benefits and potential socioeconomic risks of the Project;
2) Explore means to avoid potential socioeconomic risks;
3) Investigate the Project’s positive and negative impacts on all stakeholders, especially ethnic minorities, the poor, women and other vulnerable groups;
4) Explore actions to reduce or avoid negative impacts;
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5) Investigate the present production and living conditions, and socioeconomic profile of ethnic minorities, and develop an EMDP to ensure that ethnic minorities benefit from the Project, and the Project’s negative impacts on ethnic minorities are minimized;
6) Prepare an operable Community Participation Handbook according to the socioeconomic profile of the project areas, the present situation of stakeholders and the specific scope of the Project to ensure that the target groups and other stakeholders are fully involved in project implementation in a free, prior and informed manner, their rights of information, participation, supervision, decision-making, expression and benefiting in the Project are Protected, and potential risks arising from project implementation are minimized; and
7) Develop an Appeal Handling Mechanism based on the project areas’ practical conditions to ensure that disputes over interests arising from project implementation are settled through operable procedures, the Project is implemented successfully, and appeals of affected groups are expressed properly.
1.4 Basis of SA
This SA not only involves an investigation of socioeconomic risks, but also the preparation of the EMDP, the Community Participation Handbook and the Appeal Handling Mechanism. The basis of SA involved includes state laws and regulations, bank policies, and laws and regulations in the project areas.
Table 1: Basis of SA I. State laws and regulations 1) Land Administration Law of the People’s Republic of China 2) Environmental Protection Law of the People’s Republic of China 3) Law of the People’s Republic of China on Water Pollution Prevention and Control 4) Construction Law of the People’s Republic of China 5) Urban-Rural Planning Law of the People’s Republic of China 6) Administrative Measures for Urban Construction Planning of the People’s Republic of China 7) Administrative Regulations for Village and Town Planning and Construction 8) Law of the People’s Republic of China on the Protection of Women’s Rights and Interests
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9) Organic Law of Villagers’ Committees of the People’s Republic of China 10) Regulations of the People's Republic of China on the Disclosure of Government Information II. Bank policies 11) World Bank operational policy / Bank procedure—OP/BP 4.12 Involuntary Resettlement 12) World Bank operational policy—OP4.10 Indigenous Peoples 13) World Bank operational policy—OP 4.00 Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects 14) Operational Guide to the Monitoring and Evaluation of Resettlement of World Bank Financed Projects in China (Draft for Discussion) III. Laws and regulations in the project areas 15) Construction Plan for the Gansu Integrated Rural Economic Development Demonstration Town Project (2007-2010) 16) Measures for the Administration of the Gansu Integrated Rural Economic Development Demonstration Town Project 17) Notice on Issuing the Request for Instructions of the National Development and Reform Commission on the Plan of Alternative World Bank-funded Projects in the Fiscal Years 2009-2011 18) Request for Instructions on the Application for the Planning of the World Bank-funded Gansu Integrated Rural Economic Development Demonstration Town Project 19) Notice on Issuing the Technical Policy for Small Town Construction 20) 12 th Five-year Plan for National Economy and Social Development of Sunan County 21) 12 th Five-year Plan for National Economy and Social Development of JingYuan County 22) 12 th Five-year Plan for National Economy and Social Development of Jingtai County 23) 12 th Five-year Plan for Stockbreeding Development of Baiyin City 24) Five-year Stockbreeding Development Plan of Baiyin City 25) 12 th Five-year Plan for Stockbreeding Development of Sunan City 26) 12 th Five-year Plan for Agriculture Development of Sunan County 27) 12 th Five-year Plan for Agriculture Development of Jingtai County 28) 12 th Five-year Plan for Agriculture Development of JingYuan County 29) Summary Report of the 11 th Five-year Development Plan of Dongwan Town 30) Summary Report of the 11 th Five-year Development Plan of Hongshui Town
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31) 12 th Five-year Development Plan of Dongwan Town 32) 12 th Five-year Development Plan of Hongshui Town 33) Herbivore Breeding Development Plan of Hongshui Town 34) Rural Highway Construction Plan of Jingtai County 35) Economic Demonstration Town Plan of JingYuan County 36) Chorography and ethnography of JingYuan County 37) 2010 Statistical Report of Dongwan Town 38) 2010 Statistical Report of Hongshui Town 39) 2010 Socioeconomic Statistical Yearbook of Dongwan Town 40) 2010 Socioeconomic Statistical Yearbook of Hongshui Town 41) Socioeconomic statistical statements of Dongwan Town 42) Socioeconomic statistical statements of Hongshui Town 43) Town government annual work reports of the past 3 years of Dongwan Town 44) Town government annual work reports of the past 3 years of Hongshui Town 45) Training summaries of town governments (labor and social security, women’s association, science and technology bureau, agriculture bureau, poverty relief office) 46) Township minimum living security (MLS) policies (urban / rural residents)
1.5 Methodology of SA
This SA adopts participatory assessment methods. In addition to secondhand information review and questionnaire survey, a more important basis of SA is from extensive, in-depth interviews and consultation with stakeholders. The data collection and analysis methods corresponding to empirical methodology and participatory assessment will be described in more detail below.
1.5.1 Types of assessment data
Assessment data used in this SA fall into three types – literatures, microscopic data at the institutional and social levels, and fieldwork data.
Table 2: Summary of materials used for SA
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Type Details
A. Preparatory documents:
- General proposal of the Project, and proposals for the subprojects of the 3 SA demonstration towns
- Pre-FS reports of all 12 demonstration towns
- Memorandum of the World Bank Identification Mission
B. Socioeconomic data and resource endowment data of project areas
- Administrative division maps of the 3 SA demonstration towns and their counties
- Chorographies and ethnographies of project counties
- 2010 statistical yearbooks of project counties
- 2010 rural socioeconomic statistical statements of project towns Literatures Literatures - Agricultural zoning reports of project counties
- Ethnic minority statements in minority areas
- Gansu Development Yearbook 2010
C. Socioeconomic development reports in project areas:
- 2009 and 2010 summary work reports of governments of project counties / towns
- 2010 summary work reports of functional departments of project counties related to the Project, such as development and reform bureau, agriculture / stockbreeding bureau, water resources bureau, traffic bureau, social security bureau, poverty relief office and women’s association
- Summary reports of farmer training of agriculture / stockbreeding bureau, water resources bureau, traffic bureau, social security bureau, poverty relief office and women’s association in project towns
D. Socioeconomic development plans in project areas
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- Medium- and long-term development plans of project towns
- 12 th five-year plan for national economy development of the project counties
- Special 12 th five-year development plans, such as those for agriculture, stockbreeding, vegetable industry, traffic, tourism
- 12 th five-year plan for national economy development of the project towns
- Summary reports of 11 th five-year plans for national economy development of the project towns
E. Quantities and distribution of key stakeholder groups
F. Natural resource endowments and differences of key stakeholder groups Microscopic data Microscopic G. Socioeconomic profile of stakeholder groups
H. Poverty incidence of project areas
I. Quantity and distribution of MLS group in project areas
J. Quantities, types, distribution and socioeconomic profile of ethnic groups
K. General introduction of customs, religious believes and social cultures in project areas
L. Types, quantities and levels of benefit of stakeholder groups
Fieldwork dataFieldwork directly by from the Project: such as farmers, residents and traders affected by land acquisition and property demolition, and those affected temporarily by construction
M. Types, quantities and levels of benefit of stakeholder groups benefiting directly from the Project
N. Survey of ability and willingness to pay
1.5.2 Key points of fieldwork
In view of the main objectives and tasks of this SA, and the complexity and diversity of the components and stakeholder groups involved in the Project, the fieldwork is focused on the following:
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1) Specific scope and details of the Project
2) Identification of affected groups and other stakeholder groups
3) Impacts on and levels of influence of stakeholder groups
4) Identification of willingness to participate, willingness and ability to pay of target groups
5) Identification of economic, social and environmental risks of project activities
6) Identification of core systems and procedures for project implementation, operation and management
7) Assessment of cultural compatibility and suitability between components and project areas / target groups
8) Assessment of suitability, practicality and operability of components
1.5.3 Key principles of fieldwork
This SA is conducted under the direction of empirical methodology and participatory assessment, and in conformity with the following key principles of fieldwork based on Bank policy OP4.10 Indigenous Peoples and the appendixes thereto:
1) Free expression of ideas by respondents —The process of participation of the respondents in the fieldwork is also one of the most important aspects of community participation at the preparation stage. This process requires that the fieldwork staff allows the respondents to express their ideas and appeals in relation to the Project in a free, prior and informed manner.
2) Nonuse of inductive questions —In the fieldwork, the SA team tried to avoid ask inductive questions to obtain information with a certain preset standpoint; rather, the principle of behaviorism was applied to learn the objective situation of stakeholders.
3) Challenge of implementer —When it came to key issues in the fieldwork, especially with respect to sensitive benefit distribution and objective difficulties, the implementer (town PMO, etc.) was challenged when necessary to allow respondents to express their ideas without any worry.
4) Cross-validation and comparison —Since the Project involves benefit distribution and resource allocation, the possibility of intentional concealment of truth by respondents cannot be precluded. Therefore, in the fieldwork, key information that affects or even determines the feasibility of any component, such as its socioeconomic benefits and
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risks, different subjects were involved for cross-validation and comparison to ensure the trueness and objectiveness of the information obtained.
1.5.4 Methodology of fieldwork
The methods of fieldwork used this SA generally fall into the three types, namely observational, interview and survey methods. The key methods and tools are as follows:
1) Participatory observation
The SA team interacted extensively with the stakeholder groups of the Project to learn their socioeconomic profile and basic personal information, and also the social customs and religious believes, etc. of the project areas.
In this SA, participatory observation was not used as a separate method but used along with other methods for qualitative research.
2) Field survey
This was the first step of the fieldwork, and intended to learn the natural resource endowment, and the distribution of communities and residents around each construction site, so as to find out the Project’s possible land acquisition and property demolition impacts, and temporary impacts, and identify the main beneficiary and adversely affected groups. Depending on the components of the 3 demonstration towns, the special field survey activities are as follows:
Table 3: Summary of workload of field survey
Demonstration Total Key subjects of field survey and their and numbers town (times)
Dongwan Town - Full length of proposed road for - Construction site of the Vegetable 11 vegetable base (2) Testing and Trading Center (2)
- Full length of canal lining (2) - 5 administrative villages involved in road construction (1)
Hongshui Town - Site of road construction (4) - 2 Hui villages (1) 16
- Farmland proposed for alfalfa - 1 Han village (1) (3) - Livestock bazaar and integrated - 4 breeding bases (1) bazaar in urban area (1)
Hongwansi Town - Urban area of Hongwansi Town - Horse and deer breeding base of 6 (3) Qilianshan Biology Co. (1)
- Construction site of Qilian Jade
9
Processing Zone (2) - Daciyao Village (1) - Construction site of integrated bazaar (2)
Total 33
3) Semi-structured interview
Semi-structured interview is aimed mainly at stakeholder groups or individuals affected positively or negatively by the Project. Since semi- structured interviews are somewhat random, they are usually conducted randomly during intervals of focus group discussions (FGDs), key informant interviews and the questionnaire survey. Interview questions are related but not limited to the Project, but also include production and living difficulties, and social customs, etc.
Table 4: Summary of workload of semi-structured interviews Minority persons Minority Demonstration Demonstration Total (times) Total involved town town Main subjects and number of semi-structured interviews (minority persons involved / total number)
- PMO staff (10) - Vegetable growers at sunlight greenhouse Dongwan base (7) 26 0 Town - Vegetable brokers (9)
- PMO staff (12/12) - Staff of Qinghe Breeding Co. (0/1)
- Ordinary urban traders - Staff of Kanghui Breeding Co. (0/1) Hongshui (0/15) 55 22 Town - Staff of Dafu Dairy (1/2) - Farmers (9/15) - Ordinary breeders in breeding base (0/9)
- PMO staff (15/15) - Jade processors (3/5)
- Ordinary traders in - Processors of ethnic characteristic products Hongwans integrated bazaar (5/5) 73 40 i Town (2/16) - Displaced households (7/15) - Farmers and herdsmen (8/17)
Total 154 62
4) Key informant interview
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Key informant interview aims mainly to collect key information involved in general interviews or required for SA. The key informant interviews during the fieldwork mainly include:
Table 5: Summary of workload of key informant interviews Minority persons Minority Demonstration Demonstration Total (times) Total involved town town Main subjects and number of key informant interviews (minority persons involved / total number)
- Key PMO staff (3) - Major vegetable growers (3)
- Heads of main - Major vegetable brokers (4) Dongwan competent government 25 0 Town departments (8) - Representatives of vegetable distribution enterprises (1) - Key leaders of relevant communities (6)
- Key PMO members (4/4) - Head of Dafu Dairy (1/1)
- Heads of main - Head of Qinghe Breeding Co. (0/1) competent government Hongshui departments (7/7) - Head of Kanghui Breeding Co. (0/1) 40 21 Town - Typical urban traders - Farmers (4/6) (0/10) - Key leaders of relevant communities - Major breeders (1/4) (4/6)
- Key PMO members (4/4) - Displaced farmers/residents (3/5)
- Heads of main - Farmers and herdsmen (2/2) competent government departments (12/12) - Head of Qilianshan Biology Co. (0/2)
- Typical open-air traders Hongwansi - Head of horse and deer breeding base of integrated bazaar 44 34 Town of Qilianshan Biology Co. (0/1) (2/5) - Head of Tiancheng Food Co. (0/1) - Jade processors (2/3) - Leaders of relevant communities (6/6) - Processors of ethnic characteristic products (3/3)
Total 105 55
5) FGD
This is one of the most important methods for this SA and community participation, including FGDs with vegetable growers, women, stockbreeders and heads of county government departments:
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Table 6: Summary of workload of FGDs Minority persons Minority Demonstration Demonstration Total (times) Total involved town town Main subjects and number of FGDs (minority persons involved / total number)
- County/town PMOs (1) - 3 sample communities (6) ( once in male Dongwan and female groups each, as applies 8 0 Town - Heads of county government hereafter) departments (1)
- County/town PMOs (1/1) - 3 sample communities (4/6) Hongshui 9 8 Town - Heads of functional - Traders in town bazaars (0/1) departments of county government (1/1)
- County/town PMOs (1/1) - 4 sample communities (6/6) Hongwansi 9 9 Town - Heads of functional - Traders in integrated bazaar (1/1) departments of county government (1/1)
Total 26 17
6) Use of participatory rural appraisal (PRA) tools
In view of the objectives of this SA and the socioeconomic profile of the project areas, the PRA tools used this SA mainly include seasonal calendar, daily activity chart, community resource map and SWOT analysis. These tools are usually used in conjunction with such interview methods as semi- structured interview, key informant interview and FGD, including:
- Resource maps of project communities
- Seasonal calendar for sunlight greenhouse vegetable cultivation in Dongwan Town
- Daily activity chart of vegetable growers in Dongwan Town
- Irrigation schedule for agricultural production in Hongshui Town
- Agricultural calendar of Hongshui Town
- SWOT analysis of cattle vs. sheep raising in Hongshui Town
- SWOT analysis of alfalfa cultivation in Hongshui Town
7) Questionnaire survey
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The subjects of the questionnaire survey are mainly farmers, herdsmen and residents directly affected by the Project, and are sampled on a nonprobability basis mainly and in such forms as accidental sampling and cluster sampling (all farmer representatives involved in FGDs should be subjects of the questionnaire survey, while farmer representatives involved in group interviews should include representatives of the rich, the poor, ethnic minorities and women in the community).
Table 7: Summary of basic information of questionnaire survey Ethnic minorities’ Ethnicminorities’ Women’s copiesWomen’s Actually issuedActually Valid copies copies copies Sample community Remarks
Yongle Village 30 28 0 28 Hui people Hongshui Town Jing’an Village 30 26 0 26 Hui people Jiebei Village 25 22 8 0 Longchang Community 70 65 30 48 31 Yugu people, 17 Tibetans Hongwan Community 55 49 22 36 23 Yugu people, 13 Tibetans Hongwansi Town Yuxing Community 55 50 20 39 25 Yugu people, 14 Tibetans Daciyao Village 25 21 0 7 4 Yugu people, 1 Tibetan, 2 Mongolians Total 290 261 80 184
Table 8: Summary of basic information of field survey Number of times involving ethnic Method of Total number Demonstration town and minorities directly and fieldwork of times number of times proportion (%) Dongwan 11 0 0 Field survey 33 Hongshui 16 12 75.0% Hongwansi 6 6 100.0% Dongwan 8 0 0 FGD 26 Hongshui 9 8 88.89% Hongwansi 9 9 100.00% Dongwan 25 0 0 Key informant 97 Hongshui 40 21 52.50% interview Hongwansi 44 34 77.27% Dongwan 26 0 0 Semi-structured 154 Hongshui 55 22 40.00% interview Hongwansi 73 40 54.79% Household Dongwan 103 0 0 questionnaire 364 Hongshui 76 54 71.1% survey Hongwansi 185 130 70.3% Total 674 336 49.85%
Note: See the Appendixes hereto for the detailed process of the fieldwork.
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1.6 Methodology of data analysis
Since the Project involves components of different types in multiple project areas, the data used in this SA are very complex and diversified, including literatures and fieldwork data; and quantitative and qualitative data.
Therefore, from the perspective of empirical methodology and participatory assessment, the data analysis methods used in this SA include the following mainly:
1) Quantitative analysis: using Excel and the SPSS17.0 software for data processing, and presenting data in graphic and other forms
2) Qualitative analysis: converting data into cases for analysis and demonstration
3) Methodological perspectives of research:
a) Comparative analysis: This analysis is focused on the socioeconomic evaluation and input/output analysis of the project design, and the selection and judgment of components, such as the comparative analysis of socioeconomic benefits and risks of cattle vs. sheep in the stockbreeding funding component of Hongshui Town, and the comparative analysis of socioeconomic benefits and risks of alfalfa vs. corn.
b) Inductive analysis: This analysis is used mainly to demonstrate the socioeconomic benefits of the components, and determine the willingness and ability to pay of the target or affected groups of the Project; the basic logic is to sum up attitudes of different samples or stakeholders to a certain issue, thereby obtaining basic findings or conclusions.
c) Deductive analysis: This analysis aims to deduct the possible positive or negative impacts of any component on stakeholders, and to conduct further demonstration and analysis on this basis, such as the impacts of the Vegetable Testing and Trading Center in Dongwan Town on the income and behavior pattern of vegetable growers and brokers.
d) Case analysis: The focus is placed on cases related to project activities to explain possible impacts o f the Project on stakeholders and possible risks; case analysis is also an important method of correlation analysis between project scope and socioeconomic benefits.
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e) Logic analysis: This analysis aims to present complex relations among project activities in a simple and clear block diagram. The focus is to present the stakeholder groups involved in each stage of the Project, and possible impacts and risks, and pertinent actions gradually, thereby making a clearer analysis of the Project’s social impacts and risks, and developing pertinent safeguard measures and implementation programs for successful project implementation; f) Stakeholder analysis: This analysis evaluates the role of each group directly or indirectly interested in the Project in project implementation by judging its project impacts, response to the Project and impacts on the Project, thereby judging the interrelations and mutual adaptability between the Project and the stakeholder groups.
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1.7 Technical route of SA
Accepting the assignment of assessment February 2011
Defining objectives of February 25, 2011 assessment
Identifying Adjustment assessment tasks February 28, 2011
Designing the March 1-10, 2011 assessment plan
Fieldwork March 10-30, 2011 Supplementary survey Supplementary
Analyzing survey data April 1-30, 2011
May 25, 2011, including the first drafts of Preparing the first the Social Assessment Report, EMDP, draft Community Participation Handbook and
Appeal Handling Mechanism
Reviewing and modifying the first May 25-30, 2011 draft
Finalizing the assessment report June 20, 2011
Figure 1: Technical route of SA
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2. Background of the Project
2.1 Significance and necessity of the Project
As one of the alternative provinces of the World Bank-funded Integrated Rural Economic Development Demonstration Town Project, Gansu Province has its unique socioeconomic background.
First, Gansu is located in western China, and is typical in terms of overall socioeconomic profile, industry structure, employment structure, urban-rural disparity, urbanization rate and other core indicators of development. Therefore, Gansu is very typical and of great reference value for western China in respect of the Project. In 2009, Gansu’s regional GDP was 338.756 billion Yuan 1, ranking fifth counted backwards among the 31 province-level administrative regions in Mainland China, while per capita GDP was only 12,872 Yuan, ranking second counted backwards. In 2009, the proportion of primary industries of Gansu was 14.7%, ranking eighth in China, and the proportion of population employed in primary industries was 52.6%, ranking fourth in China.
Second, Gansu is one of the regions with the greatest urban-rural disparity in China, where the backward socioeconomic situation in rural areas is one of the main reasons. In 2009, Gansu’s per capita annual consumption was 5,284 Yuan, ranking third counted backwards in China; urban residents’ per capita annual consumption was 10,765 Yuan, ranking seventh counted backwards in China; rural residents’ per capita annual consumption was 2,657 Yuan, ranking third counted backwards in China; and the urban-rural consumption ratio was 4.1, ranking third in China.
Third, small towns in Gansu are relatively backward in general. Accelerating the overall development of small towns is an important impetus to overall balanced regional socioeconomic development, and is a good practice in western China or even similar areas in eastern China. At the end of 2009, there were 1,350 townships in Gansu, with an average resident population of 19,500 only, and the townships in Gannan Prefecture even had an average population of 6,900. A majority of the population is agricultural population. In 2009, among the 86 counties in Gansu, 73 had an agricultural population proportion of over 50%, while only 3 had a proportion of less than 20%.
Fourth, Gansu is very complex and diversified in natural resource endowments, ethnic composition, religious believes, social and cultural
1 The background data of all project areas or affected groups in this report are provided by the PMOs of the demonstration towns unless otherwise specified.
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customs, production mode and lifestyle, which is not only a challenge to the successful implementation of the Project, but also provides the Project with great reference value for similar projects.
Gansu is located at the junction of the Loess Plateau, the Qinghai-Tibet Plateau and the Inner Mongolia Plateau, and the junction of the hinterland river dry region, the Qinghai-Tibet high and cold region, and the eastern monsoon region, featuring a narrow shape, complex landforms and greatly varying altitudes. Both plains (e.g, the Hexi Corridor) and mountain areas (e.g., the Loess Plateau hill and gully area, Longnan and Qilian mountain areas, and Gannan plateau area) can be found in Gansu. The special geographic features provides Gansu with weather and land conditions for farming, forestry, stockbreeding and fishery.
There are 55 ethnic groups in Gansu Province. In addition to Han, other major ethnic groups include Hui, Tibetan, Dongxiang, Tu, Manchu, Yugu, Bao’an, Mongolian, Salar and Kazak, of which Yugu, Bao’an and Dongxiang are ethnic groups unique to Gansu. Of the 14 prefecture-level cities and prefectures in Gansu, Linxia and Gannan and ethnic minority autonomous prefectures. There are also 7 ethnic minority autonomous counties in Gansu.
Table 9: National and Gansu data on ethnic group population
Whole country Gansu Province (data Gansu Province (data from the sixth from the fifth (data from 1%
population census population census in sampling population in 2010) 2000) survey in 2005)
Han people (0,000) 122593.26 2292.51 2351.75
Proportion to total population (%) 91.51 91.25 90.74
Ethnic minorities (0,000) 11379.22 219.92 239.97
Proportion to total population (%) 8.49 8.75 9.12
Note: China Statistical Yearbook 2010, Gansu Development Yearbook 2010, website of the State Bureau of Statistics
The Project aims to drive the construction of integrated rural economic development demonstration towns through external intervention, promote the development of surrounding areas, and provide valuable experience or lessons for the integrated economic development of small towns, and the overall balanced regional economic development of whole province or even similar areas in western China.
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2.2 Objectives of the Project
The Project is a World Bank-funded infrastructure construction project approved by the State Council, and was included in the “Plan of Alternative World Bank-funded Projects in the Fiscal Years 2009-2011” (NDRC Foreign Capital [2008] No.1753) in 2008. The Project aims to realize the following objectives:
- Developing town-wide dominant and pillar industries mainly;
- Promoting the infrastructure construction of industrial parks of the demonstration towns;
- Improving the capacity of local transfer of surplus rural labor;
- Increase job opportunities of local farmers, and extending their income sources; and
- Promoting urban-rural integration, and driving the sustainable social, economic and environmental development of the demonstration towns and surrounding areas.
2.3 Duration of project implementation
The preparation work of the Project will be completed by June 2012, and the construction period will be 54 months, from June 2012 to December 2016. The completion of the preliminary identification work of the Project by the World Bank Identification Mission in December 2010 means that the preparation work will begin in January 2011 and end in May 2012. Therefore, the key milestones of the Project are as follows:
1) Preparation stage: Before June 2012;
2) Implementation stage: June 2012-December 2016 (54 months);
3) Operation and maintenance stage: After December 2016
2.4 Expected investment of the Project
The estimated gross investment in the Project is 489.4538 million Yuan (equivalent to US$74.2823 million, where US$1 is equivalent to RMB6.5891), including a World Bank loan of US$50 million (equivalent to 329.455 million
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Yuan), accounting for 67% of the gross investment, and domestic counterpart funds of 159.999 million Yuan (equivalent to US$24.2823 million), accounting for 33% of the gross investment.
2.5 Selection of demonstration towns
Through the overall investigation and review of the characteristics of proposed project activities in the demonstration towns under the Project, and their socioeconomic profile by the National Development and Reform Commission, the Ministry of Finance, the World Bank Identification Mission, and the Gansu Provincial Development and Reform Commission, the criteria and principles for the selection of a demonstration town of the Project mainly include:
1) Such town has comparative advantages in resource endowment, characteristic industry or geographic location over surrounding areas;
2) The proposed components in such town can expand the size of any existing advantaged or characteristic industry, extend the industry chain, and promote employment effectively;
3) The proposed components in such town features high market potential, high competitiveness and intensive resources in terms of industry structure and socioeconomic development, and can avoid random, blind or repeated construction;
4) The proposed components in such town can balance town development with the natural environment and socioeconomic development, and avoid large-scale resource exploitation and destruction;
5) The geographic location of such town is relatively close to the west Longhai-Lanxin economic belt, and is such that it can create an interactive and complementary development pattern between urban and rural areas, and promote the balanced development of urban and rural areas;
6) Such town has a certain financing capacity, good infrastructure, high development potential, and a regional economic promotion role; and
7) Such town is able to repay the World Bank loan in a sustainable manner to ensure sustainable project operation.
According to the above criteria and principles, the relevant municipal development and reform commissions, county development and reform bureaus, and World Bank experts have identified 12 demonstration towns for the Project through careful comparison and screening under the leadership of
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the Gansu Provincial Development and Reform Commission. These towns are:
Table 10: List of demonstration towns in the Project
No. Demonstration town No. Demonstration town
Dongwan Town, JingYuan Shenzi Town, Lingtai County, 1 7 County, Baiyin City Pingliang City
Hongshui Town, Jingtai Dongzhi Town, Xifeng District, 2 8 County, Baiyin City Qingyang City
Ganquan Town, Maiji Dangzhai Town, Ganzhou 3 9 District, Tianshui City District, Zhangye City
Zaojiao Town, Qinzhou Hongwansi Town, Sunan 4 10 District, Tianshui City County, Zhangye City
Meichuan Town, Minxian Huahai Town, Yumen City, 5 11 County, Dingxi City Jiuquan Municipality
Wenfeng Town, Longxi Qili Town, Dunhuang City, 6 12 County, Dingxi City Jiuquan Municipality
Table 11: Key socioeconomic development indicators of some demonstration towns (I) Hongshu Meichua Dongwa n Town Town n n Town Town n Zaojiao i Town Town i Town Town Project town
Land area (km 2) 229.3 320 260 184.02
Number of communities and administrative 10 15 36 29 villages
Population 45000 25541 37528 44303
Proportion of ethnic minorities 0 4.13 1.03 4.1
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Hongshu Meichua Dongwa n Town n Town Zaojiao n Town n Town i Town i Town Town Project town
Agricultural population 40518 19313 26718 1935
Nonagricultural population 3365 6228 5300 42368
Arable area (0,000 mu) 4.46 7.9 10.24 55511
Per capita arable area (mu) 1.1 4.09 3.83 28.69
Regional GDP (00 million Yuan) 7.5 2.14 2.49 1.45
Gross output value of primary industries 3.42 1.32 1.44
Gross output value of secondary industries 3.38 0.6 0.51
Gross output value of tertiary industries 0.7 0.22 0.54
Fiscal revenue (0,000 Yuan) 390 230
Per capita net income of farmers and 3940 3865 2647 2267 herdsmen (Yuan)
Per capita net income of urban residents 3685 2502.62 (Yuan)
Table 12: Key socioeconomic development indicators of some demonstration towns (II) Hongwansi Hongwansi Qili Town Town Qili Dangzhai Dongzhi Dongzhi Huahai Huahai Town Town Town Town Town Town Project town
Land area (km 2) 222.09 76 1233 4011.5 56
Number of communities and 19 20 12 5 7 administrative villages
Population 68413 31000 14575 12434 12174
Proportion of ethnic minorities 0 0 38.22 0 3.79
Agricultural population 55580 30199 4918 12062 12174
Nonagricultural population 12514 801 9040 372
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Hongwansi Hongwansi Qili Town Town Qili Dangzhai Dongzhi Dongzhi Huahai Huahai Town Town Town Town Town Town Project town
Arable area (0,000 mu) 14.1 8.5 1.4 11.43 2.8
Per capita arable area (mu) 2.54 2.81 2.85 9.48 2.3
Regional GDP (00 million Yuan) 22.3 8.94 2.56 6.48 4.68
Gross output value of primary 2.23 2.5 0.75 1.97 1.34 industries
Gross output value of secondary 11.15 2.5 1.2 3.05 1.87 industries
Gross output value of tertiary 8.92 1.4 0.61 1.46 1.47 industries
Fiscal revenue (0,000 Yuan) 4695 270 2150 674 606
Per capita net income of farmers 3580 5172 5607 7595 7085 and herdsmen (Yuan)
Per capita net income of urban 5286 10025 11850 residents (Yuan)
2.6 Overall scope and size of the Project
According to the socioeconomic profile, natural resource endowment, geographic characteristics of the demonstration towns, and the necessity and feasibility of the proposed components, a component selected for each demonstration town must meet the following key criteria:
1) Such component must comply with the provincial strategy for small town development and the town’s master plan;
2) Such component should address the key restraints in the town’s master plan, and eliminate major bottlenecks on the town’s overall economic development;
3) Such component should be focused on the rendering of public products / services or the promotion of private investment;
4) Such component must generate measurable results in promoting urban-rural integration, improving the investment environment,
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increasing income level, creating job opportunities, and improving the quality of life of town residents;
5) Such component must be technically feasible, financially sustainable, and has a scale effect and a good market prospect (based on the present / predicted supply and demand situation);
6) The investment, operation and management of such component must be adequately financially supported;
7) Such component must address the environment, economic and social issues arising from its implementation adequately; and
8) Well-established and feasible institutional arrangements must be in place to implement such component.
Through repeated screening and adjustment based on the above criteria and principles, it has been preliminary determined that components should be focused on the construction of roads and supporting facilities, farmland irrigation, construction of farm and animal product bazaars, and supporting facilities, construction of production bases and supporting facilities of advantaged or dominant industries, extension of fine agricultural and animal breeds and techniques, building of specialized cooperatives, and relevant training and technical assistance, as detailed below:
Table 13: Distribution of project components in demonstration towns Hongwansi TownHongwansi MeichuanTown Dongwan Town Hongshui Town Dangzhai Town Ganquan Town Ganquan WenfengTown Dongzhi Town Dongzhi Zaojiao Zaojiao Town Huahai Town Huahai Shenzi Town Shenzi Qili Town Qili
Component
Construction of roads and supporting facilities √ √ √ √ √ √ √ √
Farmland irrigation √ √ √
Construction of bazaars and supporting facilities √ √ √ √ √ √ √ √
Training and technical assistance √ √ √ √ √ √ √ √ √ √
Construction of industrial bases and supporting facilities √ √ √ √ √
Demonstration and extension of fine varieties/breeds and √ techniques
Building of specialized cooperatives √ √
Table 14: Incomplete statistics of main scope of construction and indicators of demonstration towns (I)
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Meichuan Dongwan Hongshui Ganquan Wenfeng Wenfeng Zaojiao Town Town Town Town Town Town Component
Roads (km) 27 3.76 – 49.1 – 4.14
Water supply pipeline (km) 0.65 6.785 – 49.1 – –
Sewer pipeline (km) 0.65 – – – – –
Heating pipeline (km) – – – – – –
Canals (km) 15 – – – – –
Bazaars 1 – – 1 1 –
Transaction shed / hall (m 2) 3600 – – 2000 8325 –
Storage rooms (m 2) 797.1 – – – 3588 –
Air-conditioned / refrigerated / thermostatic / – – 1 1 – – preservation warehouses
Surface hardening (m 2) 4800 – – 3200 – –
Commercial store (m 2) – – – 3000 – –
Garbage collection stations – – – – – –
Public toilets (m 2) 106 – – – – –
Office premises / complex (m 2) 2413.9 – – 2000 900 –
Pumping irrigation works – – 1 1 – –
Specialized cooperatives – – 10 – 5 –
Training (men-times) 8590 2808 20070 6060 – –
Agricultural base construction (mu) – 6000 15150 – 1000 –
Table 15: Incomplete statistics of main scope of construction and indicators of demonstration towns (II) HongwansiTown Dangzhai Town Dangzhai Dongzhi TownDongzhi HuahaiTown Shenzi Town Shenzi Qili Town Qili Total Total Component
Roads (km) 16.58 4.38 17.03 1.849 2.6 3.12 129.559
Water supply pipeline (km) 6.6 – 4.109 0.667 – 4.5 72.411
Sewer pipeline (km) 0.8 – 8.225 2.21 – – 11.885
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Hongwansi Town Dangzhai Town Dangzhai Dongzhi TownDongzhi Huahai Huahai Town Shenzi Town Shenzi Qili Town Qili Total Total Component
Heating pipeline (km) 16.58 – 0.305 0.785 – – 17.67
Canals (km) – – 53 – – 23 91
Bazaars 1 1 1 1 1 1 9
Transaction shed / hall (m 2) 1200 3480 1800 1980 6120 – 28505
Storage rooms (m 2) – 972 – – 2160 – 7517.1
Air-conditioned / refrigerated / 2 4 – 2 2 1 13 thermostatic / preservation warehouses
Surface hardening (m 2) 3500 – 5060 1637 – 18197
Commercial store (m 2) – – – – – 1080 4080
Garbage collection stations – – 1 1 – – 2
Public toilets (m 2) – 60 24.78 72.22 – – 263
Office premises / complex (m 2) 300 2016 1531.74 – – 2400 11561.64
Pumping irrigation works – – – – – 2
Specialized cooperatives – – – – – 15
Training (men-times) 4740 1200 15000 333 – – 58801
Agricultural base construction (mu) – – – – – – 22150
2.7 Organizational and management structure of the Project
Depending on the responsibilities and obligations of different stakeholder groups in the Project, the present organizational framework of the Project is as follows:
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Provincial development Provincial Consulting and reform PMO expert team commission Provincial finance finance Provincial department
Other Municipal govern ment Municipal departments development and reform PMO commissions
District/ county District/ county finance bureaus finance county District/ development County and reform PMO Other bureaus government departments
Township Town government PMO s
Admin. villages / communities
Farmers/herd Specialized Specialized Enterprises technicians Residents Traders Brokers smen
Figure 2: Organizational chart of the Project
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3. Socioeconomic Profile of the
Project Areas
3.1 Dongwan Town
3.1.1 Basic information
Dongwan Town, located in east central Gansu province, is in the gully region of the loess plateau upstream the Yellow River, and its average elevation reaches 1000m. The average annual temperature is about 8.9 ℃, the average annual amount of precipitation is 240mm, the annual amount of evaporation reaches 1643mm, the annual frost-free period amounts to 167 days, and the average annual sunshine duration adds up to 2,696 hours. The climate here is generally continental with abundant light, heat and land resources, little rainfall, and prevailing drought and wind. Dongwan Town is 20 km away from JingYuan County and 8 km away from the Yinsanjiao exit of the Liu-Bai Expressway. No. 109 National Highway and Bai-Bao Railway run through the town, and eight villages in the town are distributed along both sides of the No.109 National Highway, making the transportation rather convenient.
Dongwan Town takes on the shape of an irregular rectangle from south to north. Seven of the 10 administrative villages in this town, totally 24km in length, are located along the bank of Yellow River where the terrain is flat enough for gravity irrigation. The other 3 villages are located in valleys where the land is spacious and the groundwater resources are available and good enough for field irrigation or drinking. The total area of the town is 229.3 m 2 and the total area under cultivation reaches 44,600 mu, among which 27,900 mu is for vegetables, 2,025 is for orchard, 2,537 mu is for forests, and 1,088 mu is covered by economic waters. In 2010, there were 9,600 households with 43,783 persons in the whole town, among whom 40,418 were agricultural population, 3,365 were non-agricultural population, 1,477 were floating population, 3,454 enjoyed minimum living security subsidies, and 225 were five-guarantee population. There were no ethnic minorities in the town.
There are complete water facilities in this town. The Yellow River flows through 7 villages, 24 km in total. Jingle Canal, a branch canal for the Yellow River diversion, is the main source of water. Along the bank of Jingle Canal, there are 5 electricity-driven pumping irrigation projects, 3 water supply projects for sunlight greenhouses in winter, and 31 motor-pumped wells.
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Therefore, Dongwan Town has important resource advantage to develop its modern agriculture mainly in the form of sunlight greenhouse vegetable cultivation and summer field vegetable cultivation. Meanwhile, vegetable cultivation, sales and related industries have become the leading industries in Dongwan Town. In 2010, GDP in the town reached RMB 750 million Yuan, among which 342 million Yuan was the output value of the primary industry centering on vegetable industry, and per capita net income of farmers reached 4440 Yuan.Concerning vegetable cultivation, presently there are 20 business associations and cooperative organizations such as vegetable sales cooperatives in Dongwan Town, and there are relevant enterprises devoted to vegetable production, processing and sales and other industrial enterprises, totally 215 enterprises.
With the development of vegetable industry, sunlight greenhouse vegetable cultivation covers an area of 15,000 mu at present in Dongwan Town with a yearly output of about 180 million kilograms. One provincial level dam high-tech garden covering an area of 5,100 mu, three high-quality vegetable nursery stock rapid propagation bases, and four level green vegetable production bases with one thousand mu for each have been established.
3.3.2 Existing development issues
Although Dongwan Town has obvious advantages in terms of natural resources and transportation while developing modern agriculture centering on sunlight greenhouse vegetable cultivation, there still exist many actual difficulties. Issues directly related to the Project are as follows:
1) Dongwan Town mainly focuses on vegetable production, which is the primary stage of the industrial chain, and the development in sales, circulation, and deep product processing are still insufficient. Large- scale comprehensive vegetable sales market hasn’t been formed yet in Dongwan Town, and vegetables are mainly sold by brokers, resulting in short industrial chain, low additional value, disordered management, and imperfect production and marketing system. There are only a few vegetable processing enterprises, and consequently, the space for developing “order agriculture” and “contract agriculture” is limited. Therefore, farmers planting vegetables are faced with huge market risks.
2) Infrastructures for vegetable production still need perfecting. The existing roads to the vegetable production bases are still soft earth roads founded on sandy soil, which affects vegetable transportation and marketing. The channels for gravity irrigation inside the vegetable production bases haven’t been repaired for many years, resulting in narrow cross section, unsmooth drainage, and severe leakage, and consequently, water resources are seriously wasted and the cost of irrigation is high.
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3) Farmers need to further enhance their knowledge in science and technology. At present, vegetable cultivation mainly relies on experience, and farmers are too cautious towards new species and new technology; meanwhile, farmers think little of the problems of pesticide residue during vegetable production, thus frequently causing unnecessary losses.
3.3.3 Main scope of construction
Considering the current status of social and economic development and features of industrial structure in Dongwan Town as well as the existing development issues, and within the capital budget range of the Project, the main scope of construction includes:
1) Road construction: Build vegetable production base road 27 km in 5 administrative villages (Sanhe, Daba, GuaYuan, Nantou and Hongliu Villages) in Dongwan Town. The road will employ level four road standards, the roadbed will be 4.5m wide, and the running lane will be 3.5m wide. Road construction also includes one matching bridge (16 m long), one overflow pavement (20 m long), and 31 culverts. The road construction component will not occupy any farmers’ contracted land, and therefore, does not involve property demolition and resettlement.
2) Canal lining: Do canal lining for 15.0km in the vegetable production bases: 3.6 km is UD40 type, 8.0 km is UD50 type, and 3.4km is UD80 type; build 5 matching water distribution sluice gates.The canal lining project will not occupy any farmers’ contracted land, and therefore, does not involve property demolition and resettlement.
3) Bazaar construction: Build one vegetable trading bazaar, an information detection and integrated service building with an area of 2,413.9 m 2 a trading shed equipped with 100 trading stalls with a total area of 3,600 m 2, a warehouse with an area of 797.1m 2, porter’s lodges, scales room and toilets with an area of 106m 2, road and hardening terraces and parking lots with an area of 4,800 m 2, and water supply and drainage pipeline with a length of 650m; matching detection, information and other public devices and equipment will also be provided. It is predicted that the annual volume of trade in the vegetable bazaar will reach 200,000 tons.
4) Training and technical support: Provide training to farmers, various professional cooperative staff, market trading and operating management staff, and government project management staff for 8,590 person-times in total: 8,260 person-times for farmers and professional cooperative staff, 130 person-times for market operating staff, and 200 person-times for government project management staff.
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Table 16: Areas directly affected by the Dongwan Town subproject and their characteristics If land requisition and If ethnic Scope of the Communities of project property demolition will minorities will be construction implementation be needed directly involved
Road construction Sanhe Village, Daba Village, GuaYuan Village, Nantou No No Village, and Hongliu Village
Canal lining Sanhe Village, Daba Village, GuaYuan Village, and Hongliu No No Village
Construction of Arable land will be vegetable detection occupied, and collective Sanhe Village No and trading bazaar land reallocation will be needed
Training and technical All communities of Dongwan No No support activities Town
3.2 Hongshui Town
3.2.1 Basic information
Named after Hongshui River inside the town, Hongshui Town is located in the middle part of the irrigation area of the Jingdian Project (Phase 2), and it lies in the dry desertification region in central Gansu province. Hongshui Town leads to Lanzhou to the south, Yinchuan to the north, Wuwei to the west, and Tengger Desert to the north, and is the Golden Triangle which connects Gansu, Inner Mongolia, and Ningxia. Located in the north-west end of Jingtai County, Hongshui Town is 60 km away from Jingtai County and is the second largest town of the county. The average elevation of the whole town is 1,780 m, and the northeast part is higher than the southwest part. The town has a continental dry climate with an average annual rainfall of 180mm. Lying in the Yellow River Valley, the town has no perennial surface runoff. Northwest wind is prevailing throughout the year with an average annual wind speed of 1.7m/s. The average annual temperature is 8.9 degrees centigrade, frost free period lasts for 178 days, and the maximum thickness of the frozen soil is 98cm.
Hongshui Town, an immigrant town which formed in the early 1990s, has a total area of 320km 2. The total registered cultivated area is 79,000 mu, and the actual cultivated area reaches about 10,000 mu. In 2010, the town had a population of 25,541, among which the number of agricultural population was 19,302, and the number of nonagricultural population was 6,239. The permanent resident population of the township reached 7,168, and 2,751 people enjoyed minimum living security subsidies. The permanent resident
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population of the two Hui villages in the town was 1,055, 184 households in total. Besides Hui people, there were no other ethnic minorities in the town.
Hongshui Town, which is in the arid region on the border of deserts, is rich in land resources. However, irrigation mainly relies on the irrigation project of the Jingdian Project (Phase 2), so field crops such as corn are the main crops cultivated in this town. Poultry farming, which takes cornstalks as the main forage, is also an important source of income for farmers. In 2010, 184,400 heads of sheep were raised in the whole town with an year-end stock of 75,900; 6,500 heads of cattle were raised with a year-end stock of 3,762; 36,500 pigs were raised with a year-end stock of 19,360; and 32,020 chicks were raised with a year-end stock of 16,400. In 2010, the GDP in the whole town reached 214 million Yuan, among which 132 million Yuan, 62% of the total output value of the region, was the output value of the primary industry centering on agriculture and stockbreeding. In 2010, the per capita annual income of farmers was 3,865 Yuan.
There are 15 administrative villages (including two Hui villages) in the whole town, 92 village teams in total. In addition, there are 68 enterprises in the town, most of which are committed to the processing and circulation of farm products and animal products. There are 470 individual traders in the whole town, and about 400 of them are located in the township.
Hongshui Town has a special geographical location because it borders Tengger Desert to the east and north and mountainous areas to the west. It is located in the place where Gansu province, Inner Mongolia and Ningxia connect. Hongshui Town, which is far away from the county town, has a large population and a large area of land. As a matter of fact, Hongshui Town plays the role of a regional center for the northern part of Jingtai County and the surrounding areas, and is the most important trading center for agricultural and animal products as well as the most important information and education center within 25km around Hongshui Town.
3.2.2 Existing development issues
If the irrigated area and volume of irrigation water generally remain unchanged, stable yields of crops can be ensured despite of drought or excessive rain; under the circumstance that other industrial crops are not suitable for cultivation, crop cultivation has no big influence on farmers’ livelihood on the whole. However, although family stockbreeding develops well on the whole, it is also faced with many problems.
1) The existing stockbreeding mainly centers on family breeding with little variety, extensive forage grass model, and low feeding productivity. For example, the annual output of milk of dairy cattle is generally 3 tons, which is far lower than 5-6 tons, the average annual output of milk of dairy cattle in China; beef cattle only has two breeds, yellow cattle and some Luxi yellow cattle, and they cost more to raise but produce less meat; the utilization rate of straws for family animal
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feeding is low, and animals are not raised in different groups according to their weight and size; the technology of fattening and artificial insemination has not been popularized widely, and variety degeneration has happened; family animal feeding does not pay much attention to epidemic prevention, and the sheds are not clean and sanitary.
2) Although a large number of animals are raised, the infrastructure of the local sales bazaar is still imperfect, so the animal products are mainly purchased by the visiting brokers and then sold in other areas, and farmers are lack of right of market bargaining. At present, the main road connecting the production base and the live animal trading bazaar in the circulation base is of low level, and the road is mostly earth road. Meanwhile, the road leading to some administrative villages still have many earth road sections and traffic bottlenecks, so cattle and sheep traders are unwilling to get to the live animal trading bazaar, and most of them choose a shortcut and go to trade in the county town 60 km away. Consequently, traders force prices down when they purchase animal products, and farmers’ income decreases. Because of the little volume of trade in the local area, live animal trading bazaar has to choose butchering trade in the form of fairs. At the present time, the average daily volume of trade is only 50 heads (of cattle and sheep), and less than 30 heads (of cattle and sheep) are butchered every day.
3) The restrictions caused by transportation and infrastructure has to some degree limited the function of Hongshui Town as a regional commercial information exchange and circulation center for agricultural and animal products and agricultural materials, which in turn increases the bazaar trading cost for farmers living around.
3.2.3 Main scope of construction
In consideration of the current social and economic development and features of industrial structure in Hongshui Town as well as the main problems existing in the current development, within the budget range of the Project, the main scope of the construction is developed around stockbreeding development and supply of the required public infrastructure, specifically including:
1) Road works
a) Changlin Road: 1,934.449 m long, 26 m wide, city main road of the third level, two-way, 4 lanes, 12 intersections, one small bridge, rain and sewage pipes, and matching road lamps, greening and transportation project along the road.
b) Taian Road: 1,828.467 m long, 20 m wide, secondary city main road of the third level, two-way, 2 lanes, 12 intersections, one
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small bridge, rain and sewage pipes, and matching road lamps, greening and transportation project along the road.
2) Drainage works: Water supply and drainage pipes of the project will be laid along the road. The total length of the sewage pipe is 5,145 m (2,710 m along Changlin Road and 2,435 m along Taian Road), the total length of the rain connecting pipe is 1,640 m (860 m along Changlin Road and 780 m along Taian Road).
3) Forage base construction and fine breed extension of mutton sheep: Including planting 6,000 mu of fine alfalfa, constructing 200 silos, each with a volume of 50 m3, helping 300 poverty-stricken households, 184 of which are from ethnic minority villages and 116 of which are Han people, to realize economic growth by introducing 900 mutton ewes, 3 for each household, and introducing 140 mutton rams with 140 households as the project matching households.
4) Technical training: Include provincial training 130 person-times, county level training 310 person-times, and town level training 2,359 person-times. The total number of people trained in three years will reach 2,808 person-times.
Table 17: Areas directly affected by the Hongshui Town subproject and their characteristics Communities of If land requisition and If ethnic minorities Scope of the construction project property demolition will will be directly implementation be needed involved
Road works Township of Hongshui No No Town (Taian Village)
Drainage works Township of Hongshui No No Town (Taian Village)
Forage base construction All communities of and fine breed extension of No Yes Hongshui Town mutton sheep
Technical training All communities of No Yes Hongshui Town
3.3 Hongwansi Town
3.3.1 Basic information
Hongwansi Town is the place where the county seat of Sunan County, i.e. Yugu People Autonomous County, is located, and it is in the middle of Hexi
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Corridor, to the north of Qilian Mountain. Hongwansi Town is 650 km long from east to west and 120-200 km wide from north to south, with a total area of 23,800 km 2, and it borders on 15 cities, counties and districts of Gansu and Qinghai provinces. The average elevation is about 3000 m, and the actual elevation decreases from south to north. The town covers an area of 23,887 km 2 in total. The whole town is in the region of cold moist mountainous steppe climate and semiarid climate, with an average annual temperature of 4 ℃ and a frost-free period of 127 days. The average annual rainfall is 350-450 mm, amount of evaporation is 1,828mm, and the average sunshine duration adds up to 2,665 hours.
Hongwansi Town is the political, economical and cultural center of Sunan County, and it is also a town where human resources, agriculture and stockbreeding, and local characteristic industries concentrate in the county. Hongwansi Town is 98 km away from Zhangye City and 53 km away from No. 312 national highway, so the transportation here is rather convenient. The town is 51 km long from east to west and 17-28 km wide from south to north, and has a total area of 1,233 km 2, among which 6.2 million mu is grassland and 14,000 mu is arable land. The township has an area of 5.2 km 2.
The whole town has jurisdiction over 3 communities, which are Hongwan Community, Yuxing Community, and Longchang Community, 9 administrative villages, which are Yingpan Village, Tianqiaowan Village, Huashuwan Village, Longfeng Village, Qingtaizi Village, Duntaizi Village, Baizhuangzi Village, Lamawan Village, and Xiliugou Village, and Daciyao Forage Base. In 2010, the town had a population of 14,575, and 9,005 of them were Han people, 2,731 were Yugu people, 1,758 were Tibetans, 268 were Hui people, 85 were Mongoloid people, and 111 were other ethnic minorities such as Tu people, Baoan people, Dongxiang people, Koreans, and so on. The agricultural population of the town was 4,918 and the nonagricultural population was 9,040. The floating population reached 617, and 1,492 people received minimum living security subsidies.
Stockbreeding and its related industries constitute the leading industries of the town. In 2010, the number of animals raised in the whole town reached 304,841. 289,599 heads of sheep were raised with a stock of 185,354; 12,803 heads of cattle were raised with a stock of 9,218; 1,300 heads of red deer were raised with a stock of 1,000; 1,139 heads of other livestock were raised with a stock of 853.
Currently, three leading industries, i.e. deep processing of red meat, research & development and production of series of health care products made of deer, and comprehensive exploitation and utilization of Qilian Jade and processing of national artware have formed initially. In 2009, GDP in the whole town reached 256 million Yuan, among which 75 million Yuan was the output value of the primary industry, 120 million Yuan was the output value of the secondary industry, and 61 million Yuan was the output value of the tertiary industry. Financial revenue reached 21.5 million Yuan, the annual per capita net income of farmers and herdsmen reached 5,607 Yuan, and the disposable income of urban residents reached 10,025 Yuan.
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3.3.2 Existing development issues
Since Hongwansi Town is located in the remote area around Qilian Mountain, it has a large area with relatively weak comprehensive supporting service function, and the leading industries and characteristic industries develop slowly. The development issues closely related to the Project include:
First, although Hongwansi Town is a major area for stockbreeding, the support facilities for the industrialization and large-scale development, production and processing of animal products are still insufficient, resulting in long turnaround of animal products, low rate of processing and conversion, and slow development of facility stockbreeding. Consequently, the existing production capacity cannot satisfy the production, conversion and market demand of the existing stockbreeding resources.
Second, Qilian Jade processing is a characteristic industry in Hongwansi Town. At present, more than 10 processing workshops have been involved in the industrial development, and about 100 individuals and traders have participated in Qilian jade processing and marketing. They process and sell 2 million tons of Qilian jade every year, and have achieved favorable economic benefit. There is huge potential in market development. However, due to scattered market processing sites, low production capacity, and small scale, the products do not have high additional value, the driving force of market labor employment is weak, and the overall benefit is low, which has restricted the fast development of the characteristic industries.
Third, Hongwansi Town is an important region where Yugu people dwell collectively. However, as modernization proceeds rapidly, protecting the traditional culture of Yugu people from vanishing is becoming more and more difficult and challenging. Therefore, searching for the mode of combining protection and development and combining culture and industry so as to preserve and carry forward the nonmaterial culture of Yugu people has become practical difficulty that all parties are faced with.
Fourth, as the economic, social and cultural centre of Sunan County and its neighboring regions, Hongwansi Town undertakes the role of an exchanging and circulation center for human resources, materials, and information. However, as an important part of market trading and circulation network in the region, the integrated bazaar in the township, with its current extensive open-air business model, cannot satisfy the demands of reality any more.
3.3.2 Main scope of construction
In consideration of the special economic and social background of Hongwansi Town and its feaures in resources and advantages as well as the
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existing major difficulties, and within the capital budget of the Project, the main scope of construction includes:
1) Ancillary infraustructure construction in Qilan Jade Processing Zone
a) Road works: Build new roads for 1.849 km: Kangle Road 0.675 km, West Yuhong Road 0.432 km, and East Yuhong Road 0.742 km.
b) Water supply/drainage and heating works: Lay water supply pipes of 0.667 km, water drainage pipes of 2.21 km, and heating pipes of 0.785 km.
c) Electrical and lighting works: Build two new cable pits, one 50KVA box-type transformer, and one power distribution cabinet, and install electric cable 2,800 m and electric wire 2,800 m. Install 92 street lamps.
d) The Ethnic Characteristic Product Processing and Startup Training Center: Build a two-storey building for the Ethnic Characteristic Product Processing and Startup Training Center. The building will be 60 m long and 17 m wide. Each storey will be 9.75 m high. The floor space will be 1,020 m 2, and the area of structure will be 2,048 m 2.
e) Landscaping works: Do landscaping for 1,000 m 2.
2) Farm product bazaar construction
a) Bazaar works: Build a new two-storey animal product trading hall in Hongwansi Town. The building will be 40 m in length, 30 m in width, 8.1 m in clear height, and have a covered area of 1,980 m 2; build two new refrigerated warehouses, each with a length of 49.5 m, a width of 18.6 m, a height of 4.8-6 m with each one covering area of 920.7 m 2. The machine room will be 19.5 m long, 18.6 m wide, and 6 m high, and have a covered area of 362.7 m 2; the storehouse will be 30 m long, 18.6 m wide, and 4.8 m high, and have a covered area of 558 m 2; the total covered area will be 1,841.4 m 2. Accomplish floor hardening for 1,637 m 2 and landscaping for 1,000 m 2; buy 5 refrigerated trucks and 2 fork trucks.
b) Environmental protection works: Build a new bazaar garbage collection station, which will be 19.4 m long, 7.4 m wide, and 3.6 m high, and will have a covered area of 143.6 m2; build a public toilet, which will be 9.76 m long, 7.4 m wide, and 3.6 m high, and will have a covered area of 72.22 m 2.
3) Technical training: Technical training mainly targets project management staff, technicians, farmers, and herdsmen. Provide
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training to 18 (person-times) project management staff, 15 (person- times) technicians, and 300 (person-times) farmers and herdsmen.
Table 18: Areas directly affected by the Hongwansi Town subproject and their characteristics If land requisition and If ethnic Scope of the Communities of project property demolition minorities will be construction implementation will be needed directly involved
Ancillary infrastructure Longchang Community, construction in Qilan Jade Hongwan Community, No Yes Processing Zone Yuhong Community
Farm product bazaar Longchang Community, Hongwan Community, No Yes Yuhong Community
Science and technology All communities of the whole No Yes training Town
Note: The Project involves no land acquisition and property demolition within the red line
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4. Stakeholder Analysis
4.1 Identification criteria of stakeholders
Directly affected and indirectly affected: Stakeholders can be divided into directly affected groups and indirectly affected groups according to the types of affection. Directly affected groups are the target groups of the Project or the groups directly affected or disturbed by the development of the Project. Indirectly affected groups mainly refer to the groups that indirectly benefit or suffer from the Project. Indirectly affected groups in a broad sense nearly include all the stakeholders in the project areas.
This Assessment only deals with the indirectly affected groups related to the Project, i.e. indirectly affected groups in a narrow sense. Ordinary herdsmen, for example, can hardly have direct access to the refrigerated warehouses to be built by the Project. However, the refrigerated warehouses, once accomplished, will directly affect livestock processing, and then stockbreeding will be affected indirectly. Therefore, ordinary herdsmen are the indirectly affected groups of the construction of the refrigerated warehouses.
Benefit and suffer: According to the ways of being affected by the Project, stakeholders can be divided into three types, benefiting groups, suffering groups, and benefiting and suffering groups. When analyzing benefiting groups and suffering groups, this Assessment mainly focuses on directly affected groups.
Individuals and organizations: According to the scale of the groups affected by the Project, stakeholders can be divided into individuals and organizations. Individuals include vegetable growers, herdsmen, individual traders, etc., and organizations include enterprises, industry associations, etc.
4.2 Key stakeholders
Based on the systematic investigation on the specific contents of the Project and comprehensive assessment of the economic and social development status of the project areas, the main stakeholders involved in the Project and their characteristics are summarized in the following table.
Table 19: Stakeholders involved in the Project Attitude to the Stakeholder Relationship Role in the Project Degree of with the Project influence on Project the Project
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Project the Project
Provincial PMOs Organizer, coordinator, Support Coordination director, and County PMOs Direct decision maker benefit/suffer Executor, Town PMOs implementer, and Positive Coordination director
County-level functional Indirectly Coordinator and Coordination Small departments related funds disburser
Assisting, Direct Coordinating and Affected villages/communities Positive Coordination benefit/suffer safeguarding interests
Indirectly affected Indirect Indirectly affected Support Small villages/communities benefit/suffer groups
Farmers and residents affected Direct by land acquisition and property Worries benefit/suffer Assisting, demolition coordinating and Coordination safeguarding Ordinary farmers, herdsmen and interests groups Support/worries residents
Traders Assisting, Support/worries coordinating and safeguarding Enterprises interests group Direct benefit/suffer Support Industry Assistor, Medium associations/cooperatives cooperator
Assisting, coordinating and Rural brokers Support/worries safeguarding interests group
4.3 Impact and demand analysis of key stakeholders
4.3.1 Provincial PMO
The provincial PMO, established in Gansu Provincial Development and Reform Commission, is the highest provincial coordinating organization of the Project. Meanwhile, Gansu Provincial Development and Reform Commission is also the administrative examination and approval organization of the Project in the province. Therefore, the provincial PMO, which plays an important role in implementing the Project, is crucial to the success of the Project. The provincial PMO also has its own appeals in the Project.
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a) Responsibilities and obligations - The provincial PMO plays a crucial administrative and decisive role in deciding contents of the Project, managing and coordinating funds of the Project, deciding the amount of the supporting funds, and monitoring and assessing the lending plan, project quality and benefit.
- To make sure the Project is successfully implemented is not only the most important goal of the provincial PMO, but also the provincial PMO’ responsibility and commitment to the Gansu provincial government and all the project areas. b) Interactions with the Project - The provincial PMO plays a decisive role in successfully implementing the Project.
- Successful implementation of the Project can prove and affirm the existence value and job performance of the provincial PMO.
- The Project demands that staff of the provincial PMO have high professional qualities; the implementation of the project will play a positive role in enhancing the provincial PMO staff’s professional qualities and management ability and in strengthening the ability of the Provincial Development and Reform Commission in operating and executing World Bank projects. c) Demand - The World Bank shall strengthen its efforts in explaining and propagandizing its policies to the provincial PMO staff so that the provincial PMO can have a better understanding and recognition of the World Bank policies and improve the accuracy in implementing the Project.
4.3.2 County PMOs
County PMOs, which are established in the Development and Reform Commission of the counties, are the highest coordinating and administrative organizations of the Project in various project counties, and they play an important role in the implementation of the Project. Meanwhile, county PMOs also have their own appeals in the Project. a) Responsibilities and obligations - Coordinate the human resources, financial resources, and material resources required by successful implementation of the Project in county level, make overall arrangements about the responsibilities of all the related government functional departments, and fulfill project decision-making and management, supervision and implementation, monitoring and assessment.
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- To make sure the Project is successfully implemented is not only the most important goal of the county PMOs, but also the county PMOs’ responsibility and commitment to the government of the affected counties and all the stakeholders in the project areas. b) Mutual effect - County PMOs have a crucial influence on the successful implementation of the Project.
- Successful implementation of the Project is of great significance to the comprehensive economic and social development of the affected counties, and can also prove and affirm the existence value and job performance of the county PMOs.
- The project implementation process can help staff of county PMOs to improve their ability in project organization, implementation, management, monitoring and assessment. c) Demand - To improve the quantity and quality of the human resources of the county PMOs and to implement necessary capacity building and mechanism construction are important practical requirements of the county PMOs.
4.3.3 Town PMOs
As the most important organization responsible for the execution and implementation of the Project, town PMOs play a crucial role in the success or failure of the Project. Meanwhile, town PMOs also have their own beneficial appeals in the project implementation process. a) Responsibilities and obligations - Town PMOs are responsible for the implementation and coordination of all the critical activities of the subprojects, from project preparation, application, implementation and enforcement, management and supervision to project coordination, complaint handling, and project monitoring and assessment. b) Mutual effect - The Project is of great significance to the overall economic and social development of the affected towns. To ensure successful project implementation is the core objective and the most important responsibility of the town PMOs.
- The affected towns are lack of experience in implementing World Bank projects, short of reserve of human resources familiar with the related policies and demands of World Bank projects, and lack of human resource and technical storage, which is the potential risk that might affect the successful implementation of the Project.
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- Successful implementation of the Project will help to improve the quality of the human resources of town PMOs and perfect the building of related institutions. c) Demand - Conduct knowledge training and capacity building to the staff of town PMOs on the policies and specific requirements related to World Bank projects.
4.3.4 Government functional departments
Government functional departments related to the Project mainly include the county government and its specific functional departments. The county government is the highest responsible unit of the Project in the related county; government functional departments, which mainly include Development and Reform Bureau, Bureau of Finance, Agriculture and Stockbreeding Bureau, Water Resources Bureau, Road Transport Bureau, Poverty Relief Office, Women’s Federation, etc., are the important supporting and assisting organizations. a) Responsibilities and obligations - Under the unified leadership of the county government, government functional departments are responsible to help county PMOs and town PMOs to make overall arrangements about the required local supporting investments of the Project and to provide necessary policy and technical support according to their own advantages; b) Mutual effect - Governments and their functional departments have the power and capability to allocate public financial resources and other economic, political and social resources, and they are also responsible for the administrative supervision and monitoring of the related special fields in the whole town. The active participation of these departments in the Project plays a crucial role in the successful implementation of the Project.
- The Project will directly or indirectly promote the economic and social development of the affected counties, boost the increase of local finance, and meanwhile, play a positive role in improving the professional skills and related demands of the county governments and functional departments in participating in World Bank projects.
4.3.5 Communities
According to the different ways that communities are affected by the Project, communities can be divided into two types, directly affected
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communities and indirectly affected communities. Directly affected communities are shown in the following table:
Table 20: Classification of affected communities in 3 demonstration towns Demonstration Affected Scope of the Project involved town communities
Sanhe Village - The Vegetable Testing & Trading Center will occupy 37 mu of arable land in Sanhe Village; road construction and canal lining inside the vegetable base will pass through Sanhe Village
Daba Village, - Road construction and canal lining inside the vegetable base GuaYuan Village will pass through Daba Village and GuaYuan Village Demonstration town Nantou Village, - Road construction and canal lining inside the vegetable base Hongliu Village will pass through Nantou Village and Hongliu Village
Other communities - Not directly affected by the Project
Yongle Village, - This community is subsidized in high quality mutton sheep Jing’an Village breeding (full coverage), alfalfa cultivation, and silo construction Hongshui Town Taian Village - Bazaar road will be built in the community
Other communities - This community is subsidized in high quality mutton sheep breeding, alfalfa cultivation, and silo construction
Longchang - The Qilian Jade Processing and Trading Center, the Ethnic Community Characteristic Product Processing and Startup Training Center, and the integrated bazaar will be located in the Yuxing Community community Hongwansi Town - - The two refrigerated warehouses subordinate to the integrated bazaar will be built in the community
Other communities - Indirectly affected by the above project items, and directly affected by herdsman training program
Communities affected by the Project play an important role in successfully implementing the Project and realizing the project objectives and their role are manifested in the following aspects: a) Responsibilities and obligations - It’s their responsibility to actively participate in the project implementation and to provide assistance and cooperation so as to realize successful implementation of the Project.
- Directly affected communities will benefit first during project implementation, and indirectly affected communities will also enjoy the same benefit. b) Mutual effect
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- Through improving the infrastructure, perfecting the marketing environment, and enhancing the knowledge and skills of the related groups, the Project can promote the balanced development of economy and society of the affected communities and improve the living conditions of farmers, herdsmen and residents.
- The Project will, to some degree, help to enhance the capability of the affected communities in providing public governance and public service. c) Demand - Make sure the affected communities and farmers can benefit first from the Project.
- Provide necessary inputs, such as training and capability building, to the directly affected farmers so as to improve their livelihood.
- Make sure the rights and interests of the ethnic minorities and other vulnerable groups living in the communities are not impaired, ensure full involvement in the project process, launch fair and square statement disposal, and make sure the communities benefit from the Project.
4.3.6 Ordinary farmers, herdsmen and residents
Due to the different contents of subprojects and the complex economic and social background of the project areas, the influences of the Project on ordinary farmers, herdsmen and residents are not exactly the same in terms of ways and degrees.
Table 21: Summary of affected farmers, herdsmen and residents Dongwan Affected farmers, herdsmen and Impact Degree of Quantity Proportion Town residents mode impact
Dongwan Ordinary vegetable growers 2 Direct 36605 83.61% High Town impact
Non-vegetable growing farmers Indirect 3813 8.71% Low Impact
2In actual distribution, the vegetable growers include summer field vegetable growers which cannot be classified absolutely. The reason is that two types of vegetables are not exactly growing in the same seasons. Therefore, some farmers grow sunshine greenhouse vegetable and field vegetable at the same time. This kind of farmers accounts for 70% of the vegetable growers in Dongwan Town.
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Resident households in the township 3 Indirect 3365 7.69% Low Impact
Farmers in the Hui community 4 Direct 1055 3.99% High impact
Hongshui Farmers in the Han Community 5 Direct 18247 68.93% High Town impact
Resident households in the township Direct 7168 27.08% High impact
Farmers/herdsmen in the grazing Indirect 4290 29.43% Low districts impact Hongwansi Town Farmers, herdsmen and residents in Direct 10285 70.57% High the township impact
Ordinary farmers, herdsmen and residents, whether directly affected or indirectly affected, are the ultimate target groups of the Project. Their responsibilities and obligations, interactions with the Project, and demands mainly include:
a) Responsibilities and obligations
- Actively participate in the project implementation, express their opinions fairly and objectively, assist in perfecting the design of the Project, and involve in project management and supervision;
- Make active use of the facilities and services provided by the Project so as to fully exert the effects of the Project;
- Abide by the operation management and maintenance system of the Project, and actively assist in the follow-up operation management and maintenance work.
b) The impact of the Project on farmers, herdsmen and residents
3The population of urban residents that calculated here includes floating population whose registered permanent residences are not in the town affected by the Project. Therefore, the total population listed in this table is larger than the total households register population of demonstration towns affected by the Project. 4The registered farmers of the two ethnic minorities are 273, among which 53 households are not permanent households in the local, which cannot participate in the implementation of the Project. Some empty households only have registered permanent residence but without people, land and houses, some households with people being in business outside have registered permanent residence and land but without people and land here, and the households permanent reside here with registered permanent residence, people, land, houses are only 184. Therefore, the project households are determined to be 184 and realize benefit of the full coverage. 5As the Project is a demonstrative project instead of poverty relief project, and the farmers in Han communities subsidized by the Project is limited and the poor masses shall be specially considered, therefore, subsidized index of 116 households in Han people villages are mainly poor households, and the it is required that the poor households shall meet the following conditions: (1) belonging to the farmer of Hongshui Town; (2) voluntarily participate in the Project and assume the tasks and self- raised funds stipulated by the Project; (3) being willing to accept project guidance and inspection; (4) being able to engage in certain labor.
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- The Project will reduce the production costs for ordinary vegetable growers in Dongwan Town, improve production efficiency, make it easier for farmers to detect and examine the quality of the vegetables, and enhance the transparency of the sales price of vegetables.
- The project will improve the breed structure of the livestock raised by the farmers in Hongshui Town, increase the number of animals raised, increase the proportion of fine feed in the forage, improve the utilization ratio of the roughage such as straw, boost the technology of drylot feeding for farmers, strengthen the effect of ameliorating the sandy land, and improve the livelihood of the benefited farmers.
- The Project will improve the transportation system for bazaar trading in Hongshui Town and reduce the costs of buying and selling agricultural materials and subsidiary farm products;
- The Project will provide a preferable bazaar trading environment for farmers, herdsmen and residents in Hongwansi Town;
- The Project will boost the development of special industries such as Qilian jade processing and ethnic characteristic product processing and provide more job opportunities for the farmers, herdsmen and residents;
- The construction of the refrigerated warehouses will enhance the capability of processing red meat and red deer products in the township and provide the herdsmen with favorable market environment that can absorb the expansion of stockbreeding;
- During the construction period, the Project will cause certain environmental pollution and environmental risks, which will have negative impact on the farmers, herdsmen and residents living near the construction site;
- Land acquisition and property demolition caused by the Project will directly affect the mode of production and life and means of livelihood of the related farmers, herdsmen and residents. c) Demand
- Make sure the ordinary farmers, herdsmen and residents, particularly the vulnerable groups such as ethnic minorities and women, can fully participate in and benefit from the project implementation and operation management;
- Ensure the construction quality of the Project, and make sure to accept the supervision of ordinary farmers;
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- Make reasonable compensation and resettlement to the ordinary farmers, herdsmen and residents for their losses caused by the project implementation;
- Ordinary farmers, herdsmen and residents, particularly the households affected by land acquisition and property demolish and ethnic minority households or households receiving minimum living security and poverty-stricken households, shall be given priority in obtaining the new jobs created by the construction of the Project and the follow-up operation management;
- Reasonably prevent and control the temporary influences caused by the construction of the Project;
4.3.7 Households affected by land acquisition and property demolition
Within the scope directly affected by the Project, there is no households affected by property demolish in the three demonstration town.
Table 22: Statistics of households affected by land acquisition and property demolition Demonstration Households directly affected by land Households indirectly affected by land town acquisition and property demolish acquisition and property demolish
Dongwan Town 7 0
Hongshui Town 0 0
Hongwansi 0 0 Town
Dongwan Town: The Vegetable Testing & Trading Center will occupy 37 mu of land. It will be built on the basis of the existing open-air vegetable trading bazaar, but will need to occupy another 20 mu of contracted arable land, which will involve 7 farmers in Sanhe Village. Resettlement is planned to be carried out in the way of collective-owned land displacement. Refer to “Community Participation Handbook” for specific displacement and consultation procedures.
Hongwansi Town: The reconstruction of the integrated bazaar will involve temporary resettlement of the existing traders and dismissal of the tenants in the existing bazaar, which will be used as the temporary resettlement site.
2) Bazaar building
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The construction of the farm product bazaar will require temporary resettlement of the existing 27 6regular traders in the integrated bazaar. As the temporary resettlement site for the existing traders, the existing bazaar is now being rent out as warehouse and temporary housing. In total, 8 tenants are involved and need to move out of the existing bazaar. After community consultation, the specific demands mainly include: a) Traders to be resettled: - Provide a temporary trading place during the construction period;
- Provide basic public facilities and public service necessary for normal trading in the temporary trading place, including water, electricity, gas, etc.;
- The temporary trading place during the construction period shall charge no more than the current standard of bazaar operating charges.
- After the new bazaar is accomplished, the existing traders shall enjoy priority in entering the new bazaar;
- After the new bazaar is accomplished, under the condition of same rent, the existing traders shall enjoy the priority of entering and trading in the new bazaar.
- PMOs shall bear the extra cost caused by temporary displacement and resettlement;
- Among the traders to be displaced and resettled, vulnerable groups such as the disabled or the unemployed might not be able to stand the increased operating cost after the new bazaar is accomplished. Therefore, PMOs need to formulate special plans to make sure vulnerable groups also benefit from the Project. b) Tenants to be dismissed in the existing bazaar: - Inform the tenants, at least 3 months before the lease contracts expire, that their lease contracts will not be renewed
- If the lease contract has to be terminated ahead of time, PMOs shall pay liquidated damages and other extra expenses according to the terms of the lease contract.
4.3.8 Traders
Traders (including some professional technicians) are one of the main stakeholders of the Project. Classification of the main traders involved in the Project is given in the following table:
6The traders in intergrated bazaar vary with the seasons. During tourism seasons in summer, when the visitors reach the maximum, traders of different kinds can reach about 100.
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Table 23: Summary of affected traders Demonstration Directly affected traders Number of traders town
Local or non-local vegetable traders No accurate statistics Dongwan Town Traders of other types in the township 309
All traders in the township 470 Hongshui Town Traders related to selling and circulation of farm No accurate statistics products and animal products from other areas
Traders to be temporarily displaced because of the >100 (27 of them are integrated bazaar regular traders)
Processors and distributors of the Qilian jade >100 Hongwansi Town Ethnic characteristic product processors and distributors >30
Traders temporarily affected by the construction of the 135 Project in the township
Although the Project involves different types of traders, the mode and the way that they are affected are not quite different on the whole. For example, in Dongwan, most of the individual traders directly affected by the Project will be vegetable traders, and they will be affected in the following aspects:
a) The Vegetable Testing & Trading Center to be built will provide a place where vegetable traders can purchase massively, which will help to reduce cost and losses of vegetable procurement;
b) Unified testing can ensure vegetable quality and reduce the losses caused by vegetable pesticide residue exceeding the safe limit;
c) After the Project is accomplished, normative vegetable testing and trading processes and open and transparent vegetable prices in the bazaar will help to reduce the trade cost for vegetable purchasers and forwarders.
4.3.9 Enterprises
Since the Project is closely related to the leading industries and regional economic and social development of the demonstration towns, a large number of enterprises will be affected directly or indirectly. The details are as follows:
Table 24: Summary of numbers of affected enterprises and types of impact in demonstration towns
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Total number of Demonstration Representative of directly enterprises of all Impact mode town affected enterprises types in the township
Sunny Vegetable, Melon & Provide refrigerated warehouses to Dongwan Town 215 Fruit Preservation Co. in preserve vegetables JingYuan County
Xueliang Livestock Trading Provide the services of free live Bazaar animals trading, charged butchering, and purchasing
Dafu Dairy Co. Need alfalfa forage
Hongshui Town 68 Kanghui Stockbreeding Co. Provide high-quality breeding sheep of mutton sheep and alfalfa forage demand enterprise
Qinghe Stockbreeding Co. Provide high-quality breeding sheep of mutton sheep and alfalfa forage demand enterprise
Tiancheng Food Co. Take charge of the operation and management of the 1# refrigerated warehouse that is located in the company
Qilianshan Biology Co. Take charge of the construction Hongwansi 148 and management of the 2# Town refrigerated warehouse that is located in the company
Qilian Jade Culture Industry Operate and manage the Qilian Development Co., Ltd. Jade Processing and Trading Bazaar
(1) Dongwan Town Sunny Vegetable, Melon & Fruit Preservation Co. in JingYuan County, which is just adjacent to the Vegetable Testing and Trading Center, mainly provides services of refrigerating and preserving summer vegetables, and it is also the only supplier providing vegetable refrigerating and preserving service in Dongwan Town at the present time.
The implementation of the Project is expected to further accelerate the development of vegetable industry and perfect vegetable trading market in Dongwan Town. Therefore, with the increase of trade volume of vegetables, particularly the increase of production and trade volume of summer vegetables, market demand for vegetable refrigerating and preserving services will also increase, and consequently, the profit of the company will be enhanced on the whole, which is the predicable direct influence of the Project on the company.
The company has crucial influence on the realization of the comprehensive benefit of the Project because the company provides vegetable refrigerating service, which is a key link in summer vegetable refrigeration and transportation.
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It cannot be ignored that the company might monopolize vegetable refrigerating service and deliberately intervene market price (such risks will be elaborated in the next chapter). (2) Hongshui Town Enterprises directly related to the Project in Hongshui Town can be classified into three types: first, enterprises which directly benefit from the bazaar road construction, with Xueliang Livestock Trading Bazaar as a representative; second, enterprises which provide breeding sheep, alfalfa seeds and silo construction materials to the subsidized livestock breeding project, with Kanghui Stockbreeding Co. and Qinghe Stockbreeding Co. as representatives; third, enterprises which act as consumers of farm products and animal products, with Dafu Dairy Co. as a representative.
Because the bazaar road transportation network in Hongshui Town has not totally formed yet, more than 90 percent of the livestock such as cattle and sheet are purchased by dealers (or rural brokers) who purchase livestock door to door and then transport them to the town of Jingtai County where livestock are butchered and processed, and only about 10 percent of the total animals raised are directly transported by farmers to the livestock trading bazaar in Hongshui Town. Construction of the bazaar road will help to improve the local bazaar trading environment. Meanwhile, the improvement of the road transportation network will gradually increase the volume of sales and butchering of livestock such as cattle and sheep in the local bazaar, and consequently, and have a positive influence on Xueliang Livestock Trading Bazaar. In the meantime, the Project will further strengthen the function of Hongshui Town as a regional human resources and logistics center, enlarge its influencing scope around, and help local enterprises to increase profit.
As independent market operating bodies, Kanghui Stockbreeding Co. and Qinghe Stockbreeding Co. mainly provide high-quality breeding sheep and bulls. The Project will directly increase the sales volume of the two companies in the market.
Dafu Dairy is a large consumer of alfalfa. In consideration of the high market price of alfalfa and the farmers’ relatively extensive stockbreeding at present, it is possible for the alfalfa grown by farmers to be circulated and sold in the market in the medium or long run, and alfalfa is an essential ingredient of the fine forage that Dafu Dairy uses to feed dairy cattle. However, all the alfalfa consumed by Dafu Dairy at present is transported from other places. Therefore, the implementation of the Project can directly reduce its expenses on alfalfa and improve enterprise revenue.
On the whole, enterprises directly related to the Project in Hongshui Town have no direct conflict of interest with the Project, and will benefit from the implementation and operation process of the Project directly or indirectly. Therefore, they all maintain a positive attitude towards the Project. (3) Hongwansi Town
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Enterprises directly related to the Project in Hongwansi Town mainly include Tiancheng Food Co., Qilianshan Biology Co., and Qilian Jade Culture Industry Development Co., Ltd.
Tiancheng Food Co. is the largest red meat processing and marketing enterprise in Hongwansi Town, and Qilianshan Biology Co. is the only high- tech enterprise devoted to cultivation and processing of red deer products in the project areas as well as the surrounding areas. The refrigerated warehouses will be built in the two companies, which will also take charge of the operation and management of the refrigerated warehouses after they are accomplished. Such design and arrangement is based on the consideration of the following factors:
a) The two companies are the largest animal product processing and manufacturing enterprises in the project areas, and meanwhile, they are also the important tax payers in the project areas;
b) Deep processing of animal products is currently the major direction of industrial restructuring of the project areas, and the development of the two companies will generate a positive impact in this aspect;
c) Since the project areas are mainly located in the mountain valleys, there is a limited amount of available flat land. The region where the two companies are located is adjacent to the integrated bazaar to be built, so the two companies’ open space can be used as the land for construction of the refrigerated warehouses;
d) The two companies have promised to provide the land for construction of the refrigerated warehouses for free. After the refrigerated warehouses are accomplished, the two companies, as the main users of the refrigerated warehouses, will also take charge of the operation and management of the refrigerated warehouses.
The direct connection of the refrigerated warehouses with enterprises will have a positive influence when the refrigerated warehouses play their role after being constructed. However, as the refrigerated warehouses belong to public property, the issues such as how other market participants use the refrigerated warehouses and how to distribute profits between the companies and the PMOs need to be scientifically and feasibly designed and demonstrated in terms of system design and procedure design.
As a state-controlled company in Sunan County, Qilian Jade Culture Industry Development Co., Ltd. has been authorized to develop and manage the verified Qilian jade mines in Sunan County. The implementation of the Project will help to accelerate and perfect the exploring and marketing environment of Qilian jade industry, increase the company’s profit and enhance its market competitiveness. Meanwhile, the professional and technical advantages of the company will also provide basic assurance for the operation and management of the Qilian Jade Processing Zone.
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However, as the company that operates and manages the Qilian Jade Processing Zone and the only company authorized by the government to participate in and manage Qilian jade processing industry, Qilian Jade Culture Industry Development Co. possesses a monopoly position in Qilian jade processing industry. The monopoly position might be able to further regulate the current status of disordered exploration and irregular and extensive exploitation of Qilian jade, but it will also possibly result in the elimination of many other existing industry participants who fail in the market competition. The irregular market behavior of the company itself might also lead to low utilization rate and fast exhaustion of the nonrenewable Qilian jade resources.
In addition, it is necessary to further regulate the mechanism of profit distribution between the company and the PMOs as well as other industry participants in the operation and management of the Qilian Jade Processing and Trading Center.
4.3.10 Industry associations/cooperatives
The number of formally registered cooperatives or industry associations in different demonstration towns is different. Cooperatives have been fully developed in Dongwan Town because it mainly relies on vegetable industry, livestock cooperatives take the lead in Hongshui Town, and Qilian Jade associations take the lead in Hongwansi Town. The industry associations or cooperative closely related to the scope of the Project are summarized in the following table.
Table 25:Summary of affected industry associations/cooperatives Demonstration The total number of associations or Directly affected industry town cooperatives in the town associations/cooperatives
Dongwan Town 20 Vegetable Distribution Association
Hongshui Town 33 stockbreeding cooperative
Qilian Jade Association
Integrated Bazaar Administration Committee Hongwansi Town 9 Individual Business Association
Animal Product Distribution Association
(1) Dongwan Town Currently, the majority of the 20 cooperatives related to the Project in Dongwan Town are vegetable distribution cooperatives. In general, in each administrative village, there is one or two vegetable distribution cooperatives,
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and the other few cooperatives mainly sell agricultural materials necessary for vegetable production, such as pesticides, fertilizer, seeds, etc.
Most Vegetable Distribution Cooperatives related to the Project are on the whole in shell operation. Members of cooperatives are all vegetable brokers who assume sole responsibility for their own profits or losses. They purchase fresh vegetables from local growers and sell them to vegetable dealers from other places so as to gain the profit of vegetable brokerage provided by vegetable dealers. Even so, the cooperatives which the vegetable brokers belong to will not restrain or take responsibility for the vegetable brokerage.
As such, vegetable cooperatives are actually under loose management, which won’t directly affect the implementation of the Project. Meanwhile, given no major intervention or reform, the implementation of the Project is not expected to affect the status quo of vegetable cooperatives in Dongwan Town.
As site survey and community consultation indicate, the majority of vegetable brokers have so far expressed their wish for the reinforcement of vegetable cooperatives’ construction and standardized operation, so as to truly realize cooperation and sharing of resources and information. Therefore, related training and activities supporting capacity building and system construction are expected during project process.
However, the site survey has also unveiled that among the current cooperatives in Dongwan Town, besides vegetable distribution cooperatives and agricultural material selling cooperatives, cooperatives composed by ordinary vegetable growers haven’t developed and taken shape. Ordinary vegetable growers are one of the target groups of the Project, and more efforts shall be put to the organization of vegetable growers so as to maximize their benefits in the Project and fully exert the positive influence of the Project on the production and marketing of vegetable growers. Further details will be unfolded in the following chapter. (2) Hongshui Town Currently, there are 33 rural cooperatives in Hongshui Town, 1982 members in total. Among the 33 cooperatives, 12 center on crop cultivation and 8 on stockbreeding. 8 of the 33 cooperatives are located within the scope of the town, and the others are distributed in the administrative villages.
Currently, the major service of the cooperatives in Dongwan Town is to provide members with basic market information and relevant technology, but they haven’t played their due role in unified selling and buying of farm products and animal products and agricultural materials. To some extent, the implementation of the Project is expected to positively improve the trading market system and the transportation and logistics system of farm and animal products in Hongshui Town, accelerate the breed improvement, and increase the stockbreeding volume and the livestock volume. On the whole, the project will affect the related cooperatives in a positive way without generating conflicts of interest between the Project and those cooperatives.
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Since Hongshui Town is an important production base of farm products and animal products and a regional exchange center for farm products and animal products and commercial distribution, cooperatives of farmers will play a more critical role in the future economic and social development. Based on site survey and community consultation, more knowledge and skill trainings, building of organizational and administrative institutions and capacity building are expected to be offered during the implementation of the Project. (3) Hongwansi Town Industry organizations or institutions related to the Project in Hongwansi Town include Qilian Jade Processing Association, Integrated Bazaar Administration Committee, Individual Business Association, Animal Product Distribution Association, etc. These organizations are not only the objects directly or indirectly affected by the Project, but also a pivotal social force that facilitates the project implementation, participates in project operation and management, and propels the economic and social benefits of the Project.
Qilian Jade Association, established in December, 2010, is committed to upholding Qilian jade culture, carrying out research, propaganda, and popularization of Qilian jade culture, and stimulating the development and protection of Qilian jade. Seen from the design of the Project, Qilian Jade Association is directly related to the scope of the Project, but it will not directly participate in the project implementation, and therefore, will have no direct conflicts of interest with the Project. In terms of the Project, the association has extended positive supports on the whole, willing to help in all possible ways; meanwhile, the association has also expressed the wish for active participation in operation and management of Qilian Jade Processing and Trading Center after it is accomplished.
Both Individual Business Association and Individual Business Association are extension organizations of administration institutions with certain public administration function, and they have no direct conflicts of interest with the Project and wish to offer assistance and supports in all possible ways to ensure successful implementation of the Project. However, Animal Product Distribution Association has direct correlation with the animal product distribution and immediate interests of the affected herdsmen, including ethnic minorities like Yugu people, Tibetans, and so on.
In addition, as an important subject benefiting from the Project, ethnic characteristic product processors are currently in the stage of decentralized and extensive operation, lacking special organizations representing their interests. Therefore, the Project shall positively propel organization construction for them.
4.3.11 Brokers
Based on the practical situation and the project content of all demonstration towns, the directly involved rural brokers mainly include
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vegetable brokers in Dongwan Town and animal product brokers in Hongshui Town, and the project in Hongwansi Town does not involve any rural brokers.
Table 26: Summary of affected rural brokers Demonstration Brokers directly affected by the Effect town Project
Changes in the way that vegetables are Dongwan Town Vegetable brokers purchased and sold
Animal product brokers (cattle and Changes in the way that animal products Hongshui Town sheep dealers) are purchased and sold
Hongwansi Town Brokers without direct effect None
(1) Dongwan Town There are about 200 vegetable brokers in Dongwan Town, 50 of whom are active brokers, and 20 of whom manage a large-scale business in 7 major vegetable growing villages. Vegetable brokers are central to the current vegetable circulation and distribution market in Dongwan Town, and they also play a vital role in achieving the project target and ensuring successful implementation of the Project.
Vegetable brokers in Dongwan Town mainly serve as a bridge between production and distribution. They purchase vegetables for vegetable dealer from other places and gain commission fee in between. The construction of the Vegetable Testing and Trading Center will provide a unified vegetable purchasing site for brokers, and has won the support of both brokers and growers for the following reasons:
a) The present purchasing way (mainly happening right in the field) causes high cost for vegetable brokers;
b) There is no unified vegetable purchasing and distributing bazaars in the project areas, and local vegetable bazaars do not have enough right to set the price. Large local brokers are provided with price monopoly capacity, while the other small brokers cannot inform vegetable growers the price of the day immediately, and they have to tell the vegetable growers the price after 2 or 3 days and delay the payment.
c) Vegetable distribution are scattered in all villages. Brokers mainly purchase in their own villages, which is likely to lead to panic purchase in the peak periods and price squeeze in the off seasons.
d) Testing and open trading of vegetables in the Vegetable Testing and Trading Center will play a significant role in reducing market risks incurred by unqualified vegetables for brokers.
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However, the construction and use of the Vegetable Testing and Trading Center can also cause negative effects on vegetable brokers due to the following factors:
a) At present, vegetable brokers generally depend on decentralized purchase and individual operation without high operating cost. Vegetable brokers’ operating cost might be increased because of the increasing operating cost brought by unified market operation after the bazaar is accomplished.
b) At present, there is fierce competition among the numerous vegetable brokers. They mainly purchase vegetable in their own villages, and have their own traditional sphere of influence. Unified market operation in the Vegetable Testing and Trading Center after construction will allow free competition and timely market information, so small brokers will be faced with failure in the competition and elimination from the market.
c) In the medium and long run, free competition and the elimination and integration of vegetable brokers due to free competition will probably cause oligopoly of the few powerful brokers in the vegetable purchasing bazaar and further price control.
According to the site survey and community consultation, brokers’ demands mainly include:
a) Standardize the operation and management of the Vegetable Testing and Trading Center to avoid unfair competition;
b) Take into account the affordable range of vegetable brokers and growers while determining the stall fee and management cost;
c) During the operation and management of the Vegetable Testing and Trading Center, full consideration shall be given to the participation of the brokers because they are the main market participants. (2) Hongshui Town Rural brokers directly affected by the Project in Hongshui Town mainly purchase farm products and animal products. Currently, there are two modes of marketing for such products: one is that farmers transport products to the integrated bazaar of Hongshui Town, and the other is that purchasers go directly to villages for purchasing. The former mainly focuses on marketing of farm products such as grains, and the latter mainly focuses on the marketing of animal (cattle and sheep) products.
a) First, the transportation of livestock such as cattle and sheep to the bazaar requires special vehicles and high transportation cost. If individual farmers transport their own cattle and sheet to the bazaar, the cost of marketing would be too high. Therefore, purchasers are left with much market room to trade in the villages.
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b) Second, all the roads leading from villages to the trade bazaar in the township have bottlenecks, which increased the cost and difficulty for farmers who transport their livestock to the bazaar.
The Project will help to improve the market environment of farm products and animal products in the project areas, reduce transportation cost, and increase the rate of local circulation and marketing of those products. On the whole, rural brokers do not have any direct conflicts of interest with the Project, and they generally maintain a supportive attitude to the Project.
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5. Social Impact Assessment
Social impact assessment of the Project is aimed to analyze the positive impacts and negative impacts of the Project on the overall socioeconomic development, different stakeholders of the project areas, elaborate the inclusiveness of the Project and the mutual adaptability of the project scope and project areas as well as analyze the comprehensive socioeconomic benefits and risks of the Project.
5.1 Positive economic impacts
5.1.1 Dongwan Town
1) The project scope and relevant planning of project area socioeconomic development have high mutual adaptability.
The medium and long-term development plan or special development plan of Dongwan Town directly related to the Project scope includes:
℃ The 12 th Five-year Plan for Agriculture and Rural Economy Development of JingYuan County
℃ The 12 th Five-year Development Plan for Vegetable Industry of JingYuan County (2011-2015)
℃ The 12 th Five-year Development Plan for National Economy and Social Development of Dongwan Town
℃ The Construction Plan of Dongwan Town as a Demonstration Town for Integrated Economic Development
The 12 th Five-year Development Plan for Vegetable Development of JingYuan County (2011-2015) aims to build 1 national standard vegetable park in Dongwan Town to make production base of plateau summer vegetable. Develop vegetable processing enterprise, explore and push forward the industrial management mode of “enterprise (farmer special cooperative organization) + base + rural households”, establish profit and risk sharing operation mechanism in order to push the industrialization progress of vegetable.
In general, the project scope of Dongwan Town have high mutual adaptability with the medium and long-term socioeconomic development plan, special development plan for vegetable industry of JingYuan County and Dongwan Town, and comply with the current state and medium and long-term demand of regional socioeconomic development.
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2) Improve the field path in the vegetable production base and lower the transportation cost and time
Since most of the sunlight greenhouses are located on the Yellow River bank, the field paths are all sand road. It takes the vegetable growers 15 to 45 minutes to get to the vegetable base from home by bicycle. When the Project is completed, the time spent on getting to the greenhouses by farmers will be reduced to within 15 minutes.
Besides, distribution of greenhouse vegetables are completed in the way that the vegetable brokers drive trucks to the greenhouses to purchase the vegetables. They need to take a detour to the vegetable trading bazaar at Sanhe Village.7 The furthest detour may be more than 15 kilometers. When the Project is completed, the distance from the vegetable base to the Vegetable Trading Bazaar of Sanhe Village will be less than 5 kilometers.
3) Improve the irrigation conditions, reduce irrigation leakage, and increase the irrigation efficiency.
Because of disrepair for long years, most of the irrigation canals have serious leakage problems, and since the soil of arable land of the vegetable base is sandy earth which is of strong water permeability, the leakage rate of the irrigation are over 40%, and some irrigation canals is even higher. After the Project is completed, the leakage rate of the irrigation will be reduced to less than 10%.
4) Improve the bazaar trading system, accelerate the information flow, increase the transparency of bazaar trading.
At present, the vegetable traders are playing the roles of connecting the vegetable grower and the non-local vegetable dealers. And the vegetable dealers could be divided into different levels according to their business scales and business networks. Due to lack of unified pricing, the vegetable purchase prices are often decided by one or two top vegetable brokers, and the final reference prices come from Shandong Shouguang Vegetable trade market. Objectively, the vegetable growers could not know the vegetable prices of the day until two days later.
The establishment of the Vegetable Testing & Trading Center will post the prices of the main vegetable markets all over the country by virtue of instant message and avoid the monopoly of vegetable prices which will favorably form an open competitive environment.
5) Provide the objective possibilities of fine segment distribution of vegetable
Due to lack of Vegetable Testing & Trading Center of full functions, at present, fine segment mode by vegetable quality and grade classifications has not been realized in the distribution of vegetables. The establishment of
7I.e. the small-scale open-air trading bazaar where the Vegetable Testing & Trading Center planed to be built by the Project located is the largest one among many open-air bazaars in Dongwan Town.
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vegetable Testing & Trading Center will enable the realization of the fine segment distribution of vegetables which are unbearable to single vegetable brokers. 8 According to the present distribution mode, the distribution profit is only 50%-60% of the profit of the fine segment distribution.
6) The increase of vegetable production efficiency and the improvement of bazaar distribution will facilitate the expansion of production scale of the vegetable growers and increase their income.
Due to imperfect infrastructure and low utilization rate of machinery, more than 90% of vegetable production labor in the greenhouse is completed manually, such as rolling and unrolling of grass curtain at the beginning and end of each day, greenhouse ventilation, and routine weeding, pesticide spraying, hanging of the plants, hanging of the branches, vegetable picking, irrigation, fertilizing and so on. The improvement of the vegetable production infrastructure by the Project will save time for vegetable growers and gradually expand the degree of production mechanization.
According to the present level of production skills and procedures, a young couple could at most manage 2 greenhouses all the year round. When the road and irrigation conditions of the production base are improved, and if access to electricity is further realized at the production base, and degree of vegetable production mechanization is reinforced, then a young couple could manage three greenhouses all the year round with an increase of 20,000 Yuan income each year.
7) The establishment of the Vegetable Testing & Trading Center will make it possible for the rural households to grow plateau summer vegetables in large scale.
According to the difference of vegetable production modes and planting seasons, at present, vegetable planting in Dongwan Village can be divided into planting of greenhouse vegetables and plateau summer vegetable. The planting time and places of both are quite different.
Greenhouse vegetables belong to anti-season vegetables, and the main planted species are melons, peppers, tomatoes and eggplants. In each greenhouse, two crops of vegetables are planted each year. According to different growing seasons and cycles of the vegetables, there are usually 3 companion planting modes: “melon + pepper; melon + potato; melon + eggplants”, with the growing cycle lasting from the end of September to the end of June of the next year. The specific seasonal calendar for growing are as following:
The growing cycle of plateau summer vegetable is from mid-June to mid- September, mainly planted in field. It has the character of big planting area
8As single vegetable broker has small purchase volume of vegetable at one time, the vegetable volume they purchase at one time cannot meet the volume that can be transported to the outside, which will result in untimely transportation and increased cost. After concentrated in the bazaar, the problem of insufficient volume can be solved though cooperation of many brokers.
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and high yield, but the prices are often one third of the greenhouse vegetables. Because of worrying about the distribution of plateau summer vegetable, the rural households’ willingness to plant is not very high. At present there are 44,600 mu of available arable land in Dongwan Town, in which the actual planting area of vegetable is 27,900 mu, including 15,000 mu of sunlight greenhouse and 12,900 mu of actual vegetable planting field.
It’s anticipated that the implementation of the Project will greatly alleviate the vegetable distribution predicament of Dongwan Town, especially the distribution predicament of summer vegetables. It means that, during the interval of three months between the sunlight greenhouse vegetable cultivation, the vegetable growers could increase the field vegetable planting area and thus increase family income.
Table 27: Seasonal calendar for sunlight greenhouse vegetable cultivation in Dongwan Town September September November December February February October October January August March June June April April May July
Melon
Pepper
Eggplants
Tomato
8) Enhance regional center function of the project town
At present, Dongwan Town is the largest vegetable production town in JingYuan County. But the present vegetable trading are conducted in the simple open-air place. The existing problems mainly include:
- Poor trading environment makes the formation of effective management a big problem and has an adverse effect on normal production and living;
- The information such as the vegetable trading price could not be posted timely, external vegetable dealers, local vegetable brokers, vegetable growers and the supervising department of the government could not form effective symmetry of information. The disconnect of supply and demand information affects the correct decision-making of rural households concerning production and distribution, and meanwhile affects the vegetable dealers and brokers’ correct judgment to market;
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- Without being able to conduct correct testing of the vegetable origin, the vegetable growers, brokers, and dealers are all faced with big market risks, and meanwhile it may have an adverse effect on the overall vegetable quality and market credibility of Dongwan Town.
- When the summer vegetables are marketed in large quantity, since limit number of external vegetable dealers, the vegetable growers have to transport part of the vegetables to the surround farm product bazaars for distribution, which increases the vegetable selling costs and limits the vegetable production scale.
Since the overall large-scale production of vegetable in Dongwan Town, a relatively vegetable broker distribution network has been established. The radius of open-air trading bazaar has exceeded the boundary of the town, with vegetable of surrounding towns converging in Dongwan Town for selling. It's expected that the establishment of the Vegetable Testing & Trading Center will further strength the Dongwan Town’s status as the center of regional vegetable distribution and distribution.
9) The Project will have a positive effect on increasing greenhouse vegetable planting scale and increasing the income of vegetable growers and brokers.
The critical factors affecting the income of vegetable growers come for three aspects: vegetable distribution price, vegetable planting area and vegetable production cost. The implementation of the Project will lower vegetable production cost and labor intensity of vegetable growers; the Vegetable Testing & Trading Center will contribute to the close connection of production base with external market, ensuring the distribution of vegetables to the greatest extent. Under the comprehensive effect of the above conditions, the vegetable growers will have the possibility to expand the greenhouse planting area. The expansion of vegetable planting area will increase the total quantity of commissioned vegetable of vegetable brokers and commission income.
10) Provide new jobs
New jobs the Project provides include temporary jobs and long-term jobs. The former are jobs mainly for project construction, and the latter are jobs mainly for employees of vegetable industry and relevant transportation, dining services, vegetable processing and packaging after the completion of the Project. According to the project design, it's expected that 25 posts for testing, operation, and management and more than 300 posts for bazaar stalls and supporting operation will be provided when the Vegetable Testing & Trading Center is completed.
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5.1.2 Hongshui Town
Hongshui Town is within the scope of the Jingdian (Phase 2) irrigation project. Perfect manual irrigation network system will provide the arable land of the project area with stable yield despite of drought or excessive rain and form a production structure of farming and stockbreeding industry that mainly relies on the mutual supporting of crop farming and livestock breeding industry. The farming industry which is on basis of corn and alfalfa planting will provide grains, feed and forage, and drylot breeding industry takes the cornstalk, alfalfa as the main feed, meanwhile, the sheep manure is a kind of high-quality organic fertilizer that can improve the sandy land and could help increasing the land productivity. The construction of bazaar road will have a positive impact on improving regional market transportation system and trading environment, and help lowering market trading cost of agricultural materials and farm and animal products and enlarge market trading volume.
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Construct silo to Alfalfa planting, to improve improve usage rate of the feed nutrient structure, cornstalk and increases mutton sheep production efficiency. Silo construction, to improve the utilization efficiency of
Distribution of corn kernels Providing self-use and purchase meat and family Take cornstalk as the feed for wheat flour income breeding
Corn Training and science Mutton planting sheep and technology breeding support
Jingdian (Phase 2) Possessing Pumping irrigation Take sheep stools and other farm traditional breeding Project, guaranteeing the manure as the high quality fertilizer to experiences and irrigation needed by improve sandy land so as to increase technical agriculture the output of corn and other crops guarantees
Road construction, to improve the bazaar trading environment, and lower trading costs
Figure 3: Logic relations between the Project and farming and stockbreeding of Hongshui Town
1) The project scope and relevant planning of project area economic and social development have high mutual adaptability.
The development plan of Dongwan Town directly related to the Project scope includes:
℃ The General Plan of Hongshui Town, Jingtai County
℃ The 2 th “Five-Year” Agricultural Development Plan of Jingtai County
℃ The Five-Year Plan of Jingtai County as a Demonstration County for Characteristic Crop Production, Characteristic Stockbreeding, High Water-saving Efficiency and Agricultural Technolog
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℃ The Five-Year Plan of Hongshui Town for Herbivorous Stockbreeding
℃ The 12 th Five-Year Development Plan of Hongshui Town
In general, the project scope of Hongshui Town has high mutual adaptability with the medium and long-term socioeconomic development plan of Jingtai County and Hongshui Town and stockbreeding development plan. The project scope in the development plan for medium and long-term and stockbreeding special development plan complies with the demand of current state and medium and long-term development of regional economic development. For example, Five-Year Plan of Hongshui Town for Herbivorous Stockbreeding requires the full development of grass planting in woodland and garden land, returning reclaimed land to grassland, and wide promotion of alfalfa, and to intensify the utilization of processing techniques such as stalks ensiling so that the stalk utilization rate of the whole town could reach a percentage of above 80%.
2) Alfalfa planting helps improving forage nutrition structure.
At present, most rural households adopt extensive feeding mode. This mode uses cornstalks as the main feed, and properly add corn kernels at the lambing season so as to increase the nutrition intake level of ewes. As the forage containing the highest protein content, though alfalfa has been recognized by nearly all rural households, its utilization amount is still at a low level.
At present, the hay yield of per mu of alfalfa is 1,000 kg in the project area and per mu of alfalfa could breed about 10 sheep reasonably. If calculated in this way, it means that at present 16,000 mu of alfalfa need to be planted for breeding 160,000 heads of sheep annually in Hongshui Town. However, at present, the alfalfa planting area of whole town is only 10,000 mu, and the present deficiency is at least 6,000 mu. Seen from the medium and long run, according to the Five-Year Plan of Hongshui Town for Herbivorous Stockbreeding, the sheep breeding number of the whole town will reach 200,000 heads by 2013, which requires the planting area of alfalfa reaching at least 20,000 mu. In addition to beef cow, dairy cow and other herbivorous stockbreeding, by 2013, the alfalfa planting area of the whole town shall reach 25,000-30,000 mu.
The Project is expected to extend the planting of 6,000 mu of alfalfa. To some extent, this Project facilitates improving forage nutrition structure, and increase breeding efficiency.
3) The fine breed extension of mutton sheep will facilitate improving lambing rate of ewes.
At present, the species of mutton sheep raised by rural households is the hybrid of small-tailed Han sheep and local Tan sheep. Seen from the economic benefits, the local Tan sheep can give birth 1.5 times per year, and the number of lambs per birth is 1-2, if calculated in this way, then each ewe
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could give birth to about 3 lambs each year. The body of small-tailed Han sheep is 125% of that of the local tan sheep. The weight of an adult mutton sheep can reach 35-40 kg. Each ewe could give birth 2-25 times per year, and the number of lambs per birth is 2-3, if calculated in this way, each ewe could give birth to 4-5 lambs each year.
The high-quality mutton sheep the Project intends to extend is small-tailed Han sheep. It will have positive impact on improving breeding benefits of the rural households and increasing the breeding income.
4) Silo construction will facilitate the extension of high efficiency utilization of stalks, and provide the basic guarantee for the medium and long-term development of stockbreeding.
The simple silo the Project intends to extend has rather high promotional values, which are mainly reflected as follows:
- The simple silo is of small volume and low cost. It could meet the demand and affordability of small-scale breeding of rural households. If the volume of the solo is designed to be 50m3, the one-time construction investment shall be 3,000 Yuan, including project subsidies of 1,000 Yuan and self-raising fund of 2,000 Yuan, which is within most rural households’ ability to pay.
- Cornstalks of one mu will turn to 2.5 m3 after silo condensation, so the silo of 50 m3 will be able to hold the cornstalks of 20 mu, meeting the present actual need of most rural households.
- The present livestock rearing mode which directly uses cornstalk is of great waste. Generally, one mu of cornstalk can only guarantee the basic need of 1 ewe. According to the current state and plan of stockbreeding of the project area, 3 or 5 years later, the local cornstalk would no longer be able to meet the development requirement of the breeding industry.
- The cornstalk will be much softer than the dry cornstalks and of better taste after compression and ammoniation in the silo, and the usage efficiency will become 2 times of that of the dry cornstalks. This means that the livestock raising quantity can double under the condition that the corn planting area does not change.
- The Project intends to fund the construction of 200 silos. Since at present the demand of rural households on the silo construction is not urgent, construction index of 200 silos can mostly meet the present demand. Seen from long run, the Project will play a demonstration role and increase the rural households’ willingness to build their own silos.
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5) The implementation of the Project will facilitate improving the distribution mode of farm and animal products and lowering the losses of rural households.
At present, more than 80% of the rural households don’t drive the livestock to the bazaar of Hongshui Town to sell them, instead, the livestock dealers will visit village to buy them. The selling price of a sheep is usually 100-150 Yuan lower than the bazaar price. However, most rural households still choose to wait for the dealers to come to their door and buy the livestock. It’s hopeful that the implementation of the Project will affect or improve the present livestock trading mode of Hongshui Town in the following aspects and lower the losses of rural households in trading process.
- Build the bazaar road, improve the road and transportation network of Hongshui Town, improve the bazaar trading environment and lower the transportation cost of rural households to the bazaar.
- The training and technical services will improve the cultivation and breeding skills of rural households and gradually change the present price-negotiation livestock selling mode;
- Improve the self-organization and coordination capability of the community and farmers and improve the organization degree of farmers going to the bazaar through the community organization and construction of professional organizations.
6) Enhance regional center function of the project town
Because of the special geological position of Hongshui Town, it is now the center of logistics and streams of people, and the most important trading center of farm and animal products and agricultural means of production with the radius of 25 miles as well as the information and education center of the regional scope. However, there are still bottleneck phenomenon in the road network between townships and some communities, communities and communities, and Hongshui Town and the surrounding areas. The implementation of the Project and the 12th five-year traffic development plan of Jingtai County will step by step perfect the road and traffic network of the project area, and enlarge the radius of Hongshui Town as the regional center from 25 kilometers to 30 kilometers with an increase of 20,000 people within the radius.
At present, the township of Hongshui Town has 68 enterprises and about 470 individual businesses. With the expansion of functional radiation area of the Hongshui regional center, the expected turnover of the above enterprises and businesses will increase about 20% on the present basis.
7) Boost the improvement of the regional employment environment
Seen from the short run, the impact of the Project on the regional employment environment is mainly on new project construction jobs during the project construction stage. In the medium and long run, the impact of the
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Project on the regional employment environment will mainly depend on the project’s promotion of regional economic development and expansion of regional center radiation, enlarging the people stream and logistics of Hongshui Town, and boosting the development of market business, service industry and farm and animal product processing industry, and producing new jobs.
5.1.3 Hongwansi Town
Comprehensively considering the socioeconomic background and project scope of Hongwansi Town, the economic impacts of the Project are mainly reflected in the following aspects.
1) The project scope and relevant planning of project area economic and social development have high mutual adaptability.
The project scope has high adaptability with the medium and long-term development plan and relevant special development plans of Sunan County, which meet the current development of the regional economy and requirement for medium and long term development. The relevant plans that are directly related to the project scope include: