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 2 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 I 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