RP895 V1 Public Disclosure Authorized Zhaotong Central City Environmental Construction Project Resettlement Action Plan (RAP) Public Disclosure Authorized Public Disclosure Authorized Management Office of Foreign-funded Urban Construction Projects of Zhaoyang District, Zhaotong Municipality Resettlement Office of World Bank Financed Zhaotong Central City Environmental Construction Project Zhaotong, China, November 2009 Public Disclosure Authorized 1 Summary A. Overview 1. The Zhaotong Central City Environmental Construction Project (hereinafter referred to as the “Project”) consists of 3 components: northern area water supply and pipeline project, central city sewage treatment and intercepting sewer project and central city river rehabilitation project. The Project has a construction period of 5 years and a total investment estimate of 825 million yuan, including a World Bank loan of US$60 million yuan. 2. The Project Coordinating and Leading Group of Foreign Funded Projects of Zhaoyang District, Zhaotong Municipality is the executing agency of the Project, and the Management Office of Foreign-funded Urban Construction Projects of Zhaoyang District and the Owner are the implementing agencies of the Project. According to the latest feasibility study outputs, the detailed socioeconomic survey and the impact survey, the Project Management Office (PMO) of Zhaoyang District, Zhaotong Municipality has prepared this RAP with the assistance of the China Cross-Cultural Consulting Center at Sun Yat-sen University (CCCC at SYU) and World Bank experts. B. Impacts of the Project 3. During November 7-15, 2009, the Owner made a detailed survey of the key physical indicators affected by the Project, such as population, houses and attachments, land and special facilities, according to the latest feasibility study outputs, with the assistance of local governments at all levels, administrative villages, communities, villager team officials and the design agency. On the basis of the fieldwork, the consulting agency communicated with the design agency and the Owner, optimized and compared the options taking the local socioeconomic impacts of the Project into account, and took some effective measures to minimize land acquisition and resettlement. In the selection of options and the layout of other supporting facilities, settlements have been avoided as much as possible, farmland occupation reduced, and the local development plans and governmental opinions complied with. 4. The Project will affect 18 communities in 3 sub-districts, 4 administrative villages in 4 Xiangs/towns and 5,760 people out of 1,281 households of Zhaoyang District, in which permanent land acquisition will affect 2,084 people out of 463 households, and temporary land acquisition will affect 3,676 people out of 818 households. 2 enterprises/public institutions and 195 people out of 65 individual businesses will also be affected. According to the detailed impact survey, the Project will acquire 211.12 mu of farmland permanently. 5. Only the river rehabilitation project in the Project involves house demolition, with a demolition area of 10,417.65m², including private houses of 7,989.45m² (divided into rural and urban residential houses by land type, 2 including rural residential houses of 7,265.65m², involving 577 people out of 128 households; and urban residential houses of 723.8m², involving 27 people out of 6 households), collective houses of 1,864.8m², and houses of enterprises and public institutions of 563.4m². 604 people out of 134 households are involved in house demolition, all being residents that have a need to move. Other affected properties including special telecommunication and electric power facilities, power transformers, temporary bridges and other production and living facilities, and scattered fruit trees. C. Policy framework and entitlements 6. For those unavoidably affected, the negative impacts arising from land acquisition and house demolition should be minimized in light of the resettlement objectives under the Land Management Law of the People’s Republic of China, Property Law, Decision of the State Council on Deepening Reform and Exercising Strict Land Administration (Document 2004 No.28), Regulations of Yunnan Province on Land Administration, the Guidelines on Improving the Compensation and Resettlement System for Land Acquisition (LR Issue [2004] Document No.238), and the World Bank operational policy OP4.12 Involuntary Resettlement and operational procedure BP4.12 Involuntary Resettlement and the appendixes thereto. Properties of those negatively affected should be compensated for at the replacement cost, and assistance offered so that they have sufficient opportunities to exceed or at least restore the former standard of living. 7. The main policy principles embodied in the policy framework are: (1) Measures should be taken where possible to minimize the negative impacts on displaced persons; (2) Compensation and resettlement programs can improve the standard of living of displaced persons or restore it to pre-displacement levels; (3) Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs; (4) All affected properties should be compensated for at the replacement cost; (5) The principle of construction before demolition should apply. Displaced persons should have obtained all compensation fees before land acquisition and house demolition, i.e., acquisition of land and relevant properties can only be conducted after compensation fees or a resettlement site and a moving subsidy have been provided; (6) The borrower should raise resettlement and compensation fees, including contingency costs for resettlement; (7) Identification of eligibility: The deadline of eligibility identification is the date of publication of the notice of land acquisition and house demolition. After this date, displaced persons may not build, expand or rebuild any house; not alter the intended use of any house or land; and not rent land or rent or sell any house. Population influx after this date will not be eligible for 3 compensation; and (8) House compensation fees should be based on the replacement cost. D. Compensation rates for land and houses 8. According to the Land Management Law of the People’s Republic of China, the Guidelines on Improving the Compensation and Resettlement System for Land Acquisition, the Regulations of Yunnan Province on Land Administration, and the applicable policies and regulations of the affected municipality and district, the compensation rates for land acquisition of the Project have been fixed based on comments of the parties concerned (especially the affected groups) and a land price appraisal, and by reference to the established compensation rates for land acquisition of the sub-district offices approved by the Zhaoyang District People’s Government, Zhaotong Municipality in accordance with Uniform Annual Output Value Standard for Land Acquisition and Regional Integrated Land Compensation Rates of Yunnan Province (Interim) promulgated by the Ministry of Land and Resources of Yunnan Province, in which different areas are divided depending on the need to acquire rural collective land for urban construction, the location of acquired farmland, type of land utilization, land productivity, per capita arable area and overall economic level. Therefore, rates may vary from area to area, in which the land compensation rate of Longquan Sub-district is 68,150 yuan/mu; that of Taiping Sub-district 59,000 yuan/mu and that of Fenghuang Sub-district 71,300 yuan/mu. 9. The compensation rate for temporary land use is 1,500 yuan/mu together with a reclamation fee of 5,000 yuan/mu paid at a time. The period of temporary land use for construction is calculated as one year. The PMO will specify the use of the temporary construction site, restoration requirements and the compensation rate for temporary land use to be paid by the contractor in the construction contract signed with the contractor. Temporarily used land may be reused for farming by the farming household operating this land or by the construction agency and then delivered to the farming household. 10. During the feasibility study of the Project, resettlement should be minimized. For those unavoidably affected, the strategy for resettlement is to replace the lost house, land and other properties, infrastructure and income source. Of the three subprojects, only the river rehabilitation project involves house demolition. Urban houses affected by the Project will be appraised by a qualified real estate appraisal agency and then compensated for at the replacement cost. For rural houses to be demolished, displaced persons will have the two options of monetary compensation and building a house themselves in a planned plot. 11. The owners of the subprojects will ensure that the affected people are offered the entitlements to relocation before land leveling and house 4 demolition. Land compensation fees and moving subsidy will be paid to the affected villages or individuals. Compensation fees for houses, young crops and other properties will be paid directly to the affected individuals or entities. Compensation fees for infrastructure such as electric power and communication facilities will be paid to the authorities concerned for restoration. E. Income and house restoration measures 12. All affected people will continue with their present occupations or do farm work. Of the 11 villager teams in the 5 communities involved