RP1217 v2 World Bank Financed Yan’an Water Supply Project Public Disclosure Authorized Resettlement Policy Framework Public Disclosure Authorized World Bank Financed Yan’an Water Supply Project Management Office Public Disclosure Authorized December 30, 2011, Yan’an, China Public Disclosure Authorized A. Project Profile 1. As one of key construction projects in Yan'an City, World Bank Loaned Yan'an Water Supply Project (hereinafter referred to the Project) involves construction and improvement of water supply network in the urban area and its vicinity, perfection of urban water supply service facilities and enhancement of water supply management organizations’ capacities in order to ease the contradiction between water supply and demand and ensure sustainable economic and social development in the City. The project consists of two sub projects, namely World Bank Loaned Yan’an Water Supply Project (Gaojiawan Grade IV Pump Station -Yan’an Dongchuan Water Treatment Plant) and associated works (Yellow River Water Intake-Gaojiawan Grade IV Pump Station), covering one district (Baota District) and one country (Yanchuan County) of Yan’an City. Expected to kick off in 2013 and be completed in 2016, the project will contribute to stable water supply sources for the above district and country, thus addressing mid-to-long water supply issue. 2. Located in Yanchuan County and Baota District of Yan’an City, the Yellow River Diversion Project, a Class III medium-sized water supply project, consists of World Bank Loaned Yan’an Water Supply Project (Grade IV pump station in Gaojiawan--Yan’an Dongchuan Water Treatment Plant) and associated works (Yellow River Water Intake-Gaojiawan Grade IV Pump Station). It contains water hubs, pumping stations, water transfer pipelines, sediment treatment, flood storage reservoirs and emergency reservoirs, water treatment plants (WTP), water supply plants, and the construction of electrical and water supply engineering information technology, etc.. As planned, the Project will select Wangjiacun Village, Yanshuiguang Town, and Yanchuan County, as raw water intake sites. After sediment treatment, water runs from east to west through Zhaojiahe Village, another village of Yanshuiguang Town, and then through Yangjiashan Tunnel into Gaojiawan Grade IV Pump Station in the south of Yanchuan County Town. From Gaojiawan Grade IV Pump Station to the west, the pipeline is routed as start at Gaojiawan Grade IV Pump Station in the east of Yanchuan County Town toward southwest direction into Xinshegu of Yichuan, Wen'an across Caojiayuan of Yanchuan County, Tanpingchuan, a tributary of Yan River across Wenanyi Town and Yuju Town through Lucaoliang Tunnel and finally Dongchuan Water Treatment Plant by way of Guyi Town and Yaodian Town in Yan’an City. After tested, the water at the intake sites is basically qualified to the requirements of drinking water sources and sufficient. 3. Since Yan'an Water Supply Project construction designed by phases, Resettlement Action Plan (RAP) prepared by World Bank Loaned Yan’an Water Supply Project Management Office in November 2011 just covers World Bank Loaned Yan’an Water Supply Project (Gaojiawan Grade IV Pump Station -Yan’an Dongchuan Water Treatment Plant) and associated works (Yellow River Water Intake-Gaojiawan Grade IV Pump Station). As the design plan for power supply and communications projects to be implemented in Phase II is not yet confirmed, it is under imperfect condition to conduct a detailed survey on acquisition and resettlement and develop a RAP. Therefore, with the consensus of the World Bank resettlement experts, Project Management Office (PMO) decided to develop Resettlement Policy Framework for power supply and communications projects before formal evaluation on the World Bank Loaned Yan'an Water Supply Project. Given the conditions are available, the acquisition and resettlement survey and a brief RAP would be put on the agenda. In short, the Resettlement Policy Framework is developed specially for power supply and communications projects. B. Project Impact 4. Because the design for power supply and communications projects is still improved during affected assets survey, it is possible for the engineering design units to make route design optimization and adjust acquisition and resettlement data. In this case, PMO will use the ultimately affected data as resettlement basis. At the same time, any significant changes on project impact and related reasons will be reported to the World Bank (WB) prior to implementation. In case of impact on more people and village, the policies in this RAP will also apply. C. Principles and Objectives 5. In order to avoid or reduce acquisition and resettlement in this project, the basic principles in the Resettlement Policy Framework shall be followed for all project construction involving involuntary resettlement. Once the impact of acquisition and resettlement can be confirmed, the RAP will be formulated based on the policies and procedures in this Framework. 6. The Resettlement Policy Framework aims to ensure that all the affected population in these projects can receive reasonable compensations for their losses and necessary support, so as to improve or at least restore their existing production levels, income levels and living standards. 7. Affected population mentioned in the resettlement policy framework refers to: （a） people whose land is partially or wholly impacted by project construction, permanently or temporarily; （b） people whose houses are partially or wholly impacted by project construction; （c） people whose production and business activities are partially or wholly impacted by project construction, permanently or temporarily; （d） people whose ground attachments are partially or wholly impacted by project construction. 8. In order to achieve aforesaid objectives, general principles in WB OP/BP4.12 are adopted for preparation of the Resettlement Policy Framework. The details are as follows: （a） The resettlement should be carried out based on socio-economic surveys on the Project and affected assets statistics and in terms of national and local policies and provisions pertaining to land acquisition and demolition, and the WB OP/BP4.12, that is, Operational Policy on Involuntary Resettlement. （b） Project design optimization should be required to mitigate the impact of land acquisition and demolition and keep away from densely populated areas, minimizing the extent of involuntary resettlement. Various people convenience should be taken in construction to reduce the nuisance to the utmost. （c） All involuntary resettlement activities and related compensation should be considered as part of project construction in order to provide adequate funds timely and benefits from the Project for migrants. （d） Affected residents must receive all the compensation for resettlement losses before the the Project implementation, reasonable livelihood arrangement and effective production restoration as well as subsidies and support for temporary difficulties. （e） Livelihoods and standards of living of all affected persons should be restored or improved after land acquisition and resettlement. （f） Compensation for demolished houses, specialized facilities and attachments are calculated at replacement price without deduction of residual value of partial materials demolished and the depreciations of original properties. （g） Several resettlement approaches are available such as such as assets rehabilitation and monetary settlement for affected persons to select. （h） Compensation should be made for dispatched persons during relocation transition period and transitional period. （i） Subsidies for relocation and off-production and business suspension should be offered to non-residential units. （j） Vulnerable groups should receive reasonable assistance to choose housing and resettle. （k） Compensation should be made for infrastructure owners to relocate infrastructure and restore functions. （l） Reasonable compensations should be made for acquired land and resulting losses. （m） Land acquisition costs should be paid at the actual progress within three months from the date on which land acquisition compensation and resettlement plan is approved and no later than the date of land construction. （n） During resettlement preparation and implementation, it is necessary to encourage dispatched persons’ participation, solicit their views on the compensation and resettlement, and timely issue policies and standards on resettlement. （o） Measures should be pay attention to affected persons’ complaints and timely and properly solve problems and inconvenience during land acquisition and demolition. Dispatched persons’ opinion on compensation standards should be settled by negotiations as far as possible, otherwise should resort to arbitration or even prosecution. （p） Bodies responsible for resettlement need to strengthen cooperation and collaboration. In this case, all levels of resettlement bodies should be improved and all employees should take related trainings. （q） During resettlement process, reports in advance should be required to World Bank in the event of major changes incurred, including compensation standards, place and scale of acquisition and demolition, or new sub-projects. D. Preparation and Review Process for RAP 9. As for resettlement sites relating to World Bank Loaned Yan’an Water Supply Project, RAP will be prepared and carried out according to the following procedures: （a） Upon completion of preliminary project design, a brief RAP should be