Resettlement Planning Document Resettlement Plan Document Stage: Final Project Number: 35354 March 2008 PRC: Lanzhou–Chongqing Railway Development Project Prepared by Ministry of Railways, Gansu Provincial Government, Sichuan Provincial Government, and Chongqing Municipal Government. The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. RESETTLEMENT PLAN LANZHOU - CHONGQING RAILWAY PROJECT IN THE PEOPLE’S REPUBLIC OF CHINA MINISTRY OF RAILWAYS, GANSU PROVINCIAL GOVERNMENT, SICHUAN PROVINCIAL GOVERNMENT, AND CHONGQING MUNICIPAL GOVERNMENT 7 March 2008 CURRENCY EQUIVALENTS (February 2008) Currency Unit: CNY (Chinese Yuan) US$ 1.00 = CY 7.16 NOTE: In this report, "$" refers to US dollars. ABBREVIATIONS AAOV Average Annual Output Value ACWF All China Women’s Federation ADB Asian Development Bank AP Affected Persons COI Corridor of Impact DMS Detailed Measurement Survey DRC Development & Reform Committee (local government level) EA Executing Agent EIA Environmental Impact Assessment FCTIC Foreign Capital and Technical Import Center FS Feasibility Study FSDI First Survey and Design Institute IA Implementing Agency IOL Inventory of Losses Km Kilometer LARG Land Acquisition and Resettlement Group LCR Lanzhou – Chongqing Railway LYRC LanYu Railway Company MOR Ministry of Railways, PRC mu Unit of land measurement in PRC [15 mu=1 hectare (ha)] NDRC National Development & Reform Committee NGO Non-government Organization PPTA Project Preparatory Technical Assistance PRC People’s Republic of China RCSO Railway Construction Support Office RIB Resettlement Information Booklet RP Resettlement Plan ROW Right-of-Way SEPA State Environmental Protection Agency SSDI Second Survey and Design Institute STI Socially Transmitted Infection TERA TERA International Group, Inc. (USA) - i - TABLE OF CONTENTS Abbreviations I Table of Contents II Summary Resettlement Plan IV Section 1: Introduction 1 1.1 Background 1 1.2 Project Description 1 Section 2: Scope of Land Acquisition and Resettlement 7 2.1 Scope and Necessity of Land Acquisition and Building Demolition 7 2.2 Measures to Reduce Project Impact 9 2.3 Summary of Key Effects 12 2.4 Affected Enterprises, Schools and Other Employers 15 2.5 Station Link and Construction Access Roads 15 2.6 Primary Responsibilities for Resettlement 19 Section 3: Socioeconomic Profile and Project Impact 20 3.1 Overview 20 3.2 Socioeconomic Surveys of Affected Villages, Households and Enterprises 20 3.3 Characteristics of Households 21 3.4 Income and Poverty 22 3.5 Impact Analysis and Vulnerable Households 25 Section 4: Objectives, Policy Framework and Entitlements 29 4.1 Purpose and Objectives of Land Acquisition and Resettlement 29 4.2 Applicable Land Policies, Laws, and Guidelines 29 4.3 Property Ownership and Structure of Payments 35 4.4 Compensation Standards and Rates 37 4.5 Eligibility Policy and Entitlements Matrix 42 Section 5: Restoration of Rural and Urban Residences, Enterprises, Institutions and Infrastructure 47 5.1 Building Demolition and Reallocation 47 Section 6: Economic Restoration Strategy 52 6.1 Current Income Level and Vulnerable Households 52 6.2 Livelihood Restoration Strategy 52 6.3 Supplementary Strategy for Vulnerable Groups 57 6.4 Economic Rehabilitation Plans for Seriously Affected Villages 60 - ii - Section 7: Institutional Framework and Arrangements 62 7.1 Institutional Framework 62 7.2 Institutional Obligations 65 7.3 High Level Coordination 68 7.4 Capacity to Plan and Manage Land Acquisition and Resettlement 68 Section 8: Consultation and Grievance Redress Participation 69 8.1 Project Stakeholders 69 8.2 Mechanisms for Stakeholder Participation 69 8.3 Local Institutions or Organizations 79 8.4 Procedures for Redress of Grievances 80 Section 9: Resettlement Budget and Implementation Schedule 82 9.1 Land Acquisition and Resettlement Costs 82 9.2 Annual Budget 82 9.3 Sources of Funding 84 9.4 Time Schedule 85 Section 10: Monitoring and Evaluation 89 10.1 Objectives and Scope 89 10.2 Baseline Data 89 10.3 Internal Monitoring of Resettlement Targets 90 10.4 External Independent Evaluation 94 10.5 Participation by Affected People 99 Annexes to the Resettlement Plan Annex A: Detail of Land, Buildings to be Acquired Annex B: Affected Enterprises and Institutions Annex C: Severely Affected Village Restoration Plans Annex D: Resettlement Information Booklet Annex E: Records of Consultations Annex F: Estimated Budget for Land Acquisition and Resettlement by County/District, Province/Municipality and City Annex G: Terms of Reference for External Monitoring Annex H: Socio-Economic Summary for Counties Annex I: Gender Analysis and Mitigation Measures - iii - SUMMARY RESETTLEMENT PLAN 1. The Project railway line is an electrified double-track which will span 833km from Lanzhou in the north, to Chongqing in the south, using 5 existing stations, and requiring 10 new passenger/freight stations. The Lanzhou-Chongqing Railway (LCR) Project will cross 3 provinces, 1 provincial level municipality, 7 prefecture level cities, and 22 counties and districts. The LCR will pass through mountainous terrain, and in these areas tunneling is extensive. In total, 190 tunnels totaling 521.1km or 62.3 percent of the entire length have resulted in greatly reduced resettlement. In addition, 10.3 percent of the alignment will be on bridges, amounting to 72.6 percent of the alignment in tunnels or on bridges. Numerous alternatives have been considered for LCR alignment, and in each case land acquisition and housing demolition have been paramount variables considered, resulting in the current alignment. 2. An estimated 24,694 mu of land will be permanently acquired, of which 51 percent is cultivated dry land, 31 percent paddy land, 0.8 percent orchard (in total 82.8 percent farmland), 6.8 percent woodland, 2.7 percent wasteland, 6.4 percent residential land. About 45.5 percent of the land is in Gansu, 0.3 percent in Shaanxi, 43.3 percent in Sichuan, and 10.9 percent in Chongqing. The Project will also temporarily acquire 20,826 mu for LCR construction activities and access. An estimated total of 1,189,240 m2 of structures will be affected, of which 93.7 percent are residential units and other farm structures; 5.3 percent are factory buildings, workshops, and other industrial structures; and 1 percent school buildings. Based on the Chinese standard for impact assessment, the equivalent of 3,843 households would lose all their land and agricultural livelihoods, and 12,072 households would have their houses demolished. However, due to the corridor type impact of the alignment, most land impacts will be partial, resulting in more affected households with lesser impact. However, land holdings along the LCR are small, so impacts of land losses are relatively significant. Based on previous PRC railways experience it is estimated partial land impacts in the order of 15 percent along the route, and 33 percent at stations will be experienced, resulting in approximately 81,366 affected people and 21,469 households due to permanent land acquisition. In addition, an estimated 6,935 households (26,283 people) are expected to be affected by temporary land acquisition. In total then the LCR will impact through permanent and temporary land use upon the lives and resources of an estimated 28,404 households. Land acquisition and resettlement impacts have been lessened by aligning the railway away from the most densely populated areas, and avoiding villages, cultivated land, and facilities where possible, based on consultations with communities. Numerous alternatives have been considered for LCR alignment, and in each case land acquisition and housing demolition have been paramount variables considered. 3. The resettlement objective is to ensure that compensation and entitlements provided to AP are adequate to at least maintain their "without-project" standard of living, with prospects of improvement, in line with the Land Administration Law (amended 2004) of the People's Republic of China (PRC) and with ADB's Policy on Involuntary Resettlement (1995) and Policy on Indigenous Peoples (1998). In addition, affected people that are poor or vulnerable should be made better off, either as direct beneficiaries or through special measures to safeguard and enhance their living conditions. People losing land, housing, other assets, or other means of production will be compensated at replacement cost and assisted in restoring their incomes and living standards. In 2004, the PRC Constitution was amended to ensure that people are compensated according to law for land expropriated for public projects. The State Council (SC), China’s highest policy making body, issued its Decision on Further Reform to Strictly Implement Land Administration, State Document No.28 (2004), which requires public consultation with all AP prior to approval of projects, maintenance of the living standard of AP, strengthened monitoring procedures, and public accounting of the receipt and distribution of resettlement funds. Payments for land will be made to the village collectives, and they will determine the allocation of funds in conjunction with AP and local government officials. Following the DMS, income restoration plans will be prepared for seriously affected villages with particular emphasis on long-term sustainable income enhancement strategies. - iv - 4. The RP stipulates eligibility/entitlement provisions for AP. SC Document No.