43025-013 gansu tianshui urban infrastructure development ... · adb-financed gansu tianshui urban...

Resettlement Plan

July 2013

People’s Republic of China: Gansu Tianshui Urban

Infrastructure Development Project

Prepared by Tianshui Urban Construction Investment Group Co. Ltd. for the Asian Development

Bank.

CURRENCY EQUIVALENTS (as of 19 July 2013

Currency unit – (CNY) CNY1.00 = $0.1628

$1.00 = CNY6.1413

ABBREVIATIONS

AAOV – annual average output value

ADB – Asian Development Bank

AP – affected person

CNY – yuan

HH – household (in tables)

IALAR – implementing agency land acquisition and resettlement

M&E – monitoring and evaluation

MLGL – minimum living guarantee line

PRC – People’s Republic of China

PRO – project resettlement office

RC – resettlement community

RO – resettlement office

RP – resettlement plan

SOL – state-owned land

TMG – Tianshui Municipal Government

TPMO – Tianshui Project Management Office

TUCIC – Tianshui Urban Construction Investment Group Co. Ltd.

TXDC – Tianshui Xiqin Demolition Company

NOTE

In this report, "$" refers to US dollars. This updated 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. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

GANSU TIANSHUI URBAN INFRASTRUCTURE DEVELOPMENT PROJECT

(ADB Loan 2760-PRC)

RESETTLEMENT PLAN (Updated) (Road and Bridge Component)

Tianshui Urban Construction Investment Group Co. Ltd.

Submitted on February 2013

Revised version April 2013

Revised July 2013

Gansu Tianshui Urban Infrastructure Development Project Road and Bridge Component

Abbreviation

All abbreviations were explained in the text.

AAOV annual average output value

ADB Asian Development Bank

AP affected person

CNY yuan

HH household (in tables)

IALAR implementing agency land acquisition and resettlement

M&E monitoring and evaluation

MLGL minimum living guarantee line

PRC People’s Republic of China

PRO project resettlement office

RC resettlement community

RO resettlement office

RP resettlement plan

SOL state-owned land

TMG Tianshui Municipal Government

TPMO Tianshui Project Management Office

TUCIC Tianshui Urban Construction Investment Group Co. Ltd.

TXDC Tianshui Xiqin Demolition Company


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ENDORSEMENT LETTER OF RESETTLEMENT PLAN

Asian Development Bank:

The resettlement plan (hereinafter referred to as RP) of the road and bridge components of

ADB-financed Gansu Tianshui Urban Infrastructure Development Project is prepared and

compiled in accordance with relevant resettlement regulations of ADB Safeguard Policy and

relevant laws and legislations of the Government of the People’s Republic of China. During

implementation of the project, we will strictly abide by this RP.

Date: July 17_, 2013

Signature:

Mr. Zhao Yaoxiong

General Manager

Tianshui Urban Construction Investment Group Co. Ltd.


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TABLE OF CONTENTS

EXECUTIVE SUMMARY ....................................................................................................................... 1

E0. Introduction for the Updated RP ....................................................................................... 1 E1. Description of the Project and Land Acquisition and Resettlement Impacts .................... 2 E2. Resettlement Principles and Entitlements .................................................................. 2 E3. Public Participation and Grievance ............................................................................. 3 E4. Resettlement and Livelihood Rehabilitation ................................................................ 3 E5. Institutional Arrangement ............................................................................................ 3 E6. Cost and Schedule ...................................................................................................... 4 E7. Monitoring and Evaluation .......................................................................................... 4

I． PROJECT OVERVIEW .............................................................................................................. 5

1.1 INTRODUCTION OF TIANSHUI CITY ....................................................................... 5 1.2 PROJECT CONTENTS .............................................................................................. 5 1.3 REGIONS AFFECTED BY THE COMPONENT ......................................................... 6 1.4 MEASURES TO MITIGATE IMPACTS ....................................................................... 7

1.4.1 Measures Adopted at the Project Design Stage .................................................... 7 1.4.2 Measures to Be Adopted during LAR .................................................................... 8 1.4.3 Measures to Be Adopted during Construction ....................................................... 8

1.5 PREPARATION AND PROGRESS OF THE PROJECT ............................................. 9 1.6 OWNERSHIP OF THE COMPONENT ....................................................................... 9

II. PROJECT IMPACT ANALYSIS ................................................................................................ 10

2.1 DEFINITION OF PROJECT IMPACT...................................................................... 10 2.2 PROJECT IMPACT SURVEY .................................................................................. 11 2.3 PROJECT IMPACTS ............................................................................................... 12 2.4 IMPACTS OF LAND ACQUISITION ....................................................................... 12

2.4.1 Land Acquisition .................................................................................................. 12 2.4.2 Temporary Land Occupation ............................................................................... 18

2.5 AFFECTED BUILDINGS ......................................................................................... 18 2.5.1 Affected Residential Buildings ............................................................................. 18 2.5.2 Affected Buildings of Enterprises and Institutions .............................................. 19 2.5.3 Affected Temporary Buildings ............................................................................. 24 2.5.4 Affected Attachments on the Buildings ............................................................... 24

2.6 Affected Vulnerable Groups .................................................................................... 24 2.6.1 Identification of Affected Vulnerable Groups ....................................................... 24 2.6.2 Affected Families of Vulnerable Groups .............................................................. 25

III. ANALYSIS ON SOCIO-ECONOMIC SURVEY OF PROJECT IMPACT .................................. 26

3.1 GENERAL INTRODUCTION OF SOCIO-ECONOMIC DEVELOPMENT OF THE REGIONS AFFECTED BY THE PROJECT .................................................................................... 26

3.2 GENERAL SITUATION OF AFFECTED VILLAGES ............................................... 26 3.3 ANALYSIS ON AFFECTED FAMILIES ................................................................... 30

3.3.1 Basic Information of Affected Family Members ................................................... 30 3.3.3 Economic Situation of Affected Families ............................................................. 32

3.4 IMPACT ON ETHNIC MINORITIES AND GENDER ............................................... 35 3.5 IMPACT on Non Residential Units ............................................................................ 36

IV. Legal and Policy FRAMEWORK .............................................................................................. 39

4.1 GENERAL ............................................................................................................... 39 4.2 POLICY BASIS ....................................................................................................... 39

4.2.1 Relevant Laws and Provisions Enacted by the Central Government.................. 39 4.2.2 Regulations and Policies Enacted by the People’s Government of Gansu Province


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39 4.2.3 ADB’s Policies on Involuntary Resettlement ....................................................... 40

4.3 SUMMARY OF MAIN LAWS, REGULATIONS AND POLICIES ............................. 40 4.3.1 Summary of Relevant National and Provincial Laws and Regulations ............... 40 4.3.2 Abstracts of related regulations and rules of Tianshui City and Gansu Province 43 4.3.3 ADB’s Relevant Policies on Involuntary Resettlement ........................................ 45 4.3.4 Comparison of ADB’s involuntary resettlement policies with the PRC’s LAR policies 46

4.4 TARGET OF RESETTLEMENT .............................................................................. 47 4.5 COMPENSATION CONDITIONS ........................................................................... 47 4.6 COMPENSATION PRINCIPLES ............................................................................. 47 4.7 COMPENSATION STANDARDS ............................................................................ 48

4.7.1 Land Compensation Standards .......................................................................... 48 4.7.2 Social Pension Insurance of the Landless Farmers ........................................... 50 4.7.3 Compensation Standards for Temporarily Occupied Land .................................. 53 4.7.4 Compensation on House Demolition ................................................................... 53 4.7.5 Moving and Transition Cost ................................................................................... 56 4.7.6 Compensation for Business Operation .................................................................. 56 4.7.7 Compensation for Temporal Housing ................................................................. 56

4.8 Chiyu Road House Demolition Policy (May 23, 2012) .............................................. 57 4.8.1 Policy Basis ........................................................................................................... 57 4.8.2 Demolition Area ..................................................................................................... 57 4.8.3 The Principles of Land Acquisition and Demolition ............................................... 57 4.8.4 The Standards of Land Acquisition and Demolition ............................................... 57 4.8.5 The Standards of Resettlement ............................................................................. 58

4.9 Maiji New Town Resettlement Plan ................................................................................. 60 4.10 Restoration of Infrastructure and Ground Attachments ................................................. 60 4.11 Entitlement Matrix .......................................................................................................... 61

V. PUBLIC PARTICIPATION AND CONSULTATION ................................................................... 66

5.1 PUBLIC PARTICIPATION AND CONSULTATION ACTIVITIES PERFORMED ...... 66 5.2 FEEDBACK ON PUBLIC PARTICIPATION AND CONSULTATION ....................... 68 5.3 CONSULTATION PLAN WITH AFFECTED POPULATION .................................... 70 5.4 METHODS OF CONSULTATION OF AFFECTED POPULATION DURING PROJECT

IMPLEMENTATION ......................................................................................................................... 71 5.5 INFORMATION DISCLOSURE ............................................................................... 71

VI. IMPLEMENTATION PLAN FOR RESETTLEMENT AND REHABILITATION .......................... 73

6.1 OBJECTIVES AND PRINCIPLES ........................................................................... 73 6.1.1 Objectives of resettlement and rehabilitation ...................................................... 73 6.1.2 Principles of Resettlement and Rehabilitation ..................................................... 73

6.3 THE RESETTLEMENT OF URBAN RESIDENTS .................................................. 75 6.3.1 The Plan of the Resettlement of Urban Residents ............................................. 75 6.3.2 Economically Affordable Houses ......................................................................... 75 6.3.3 The Plan of the Resettlement of Urban Residents ............................................. 77

6.4 THE RESETTLEMENT OF RURAL HOUSEHOLDS .............................................. 79 6.4.1 Independent relocation by Chengji Road villagers ............................................ 79 6.4.2 Resettlement Plan of Chiyu Road villagers ....................................................... 79

6.5 REHABILITATION OF THE LIVING CONDITIONS OF FARMERS AFFECTED BY LAND ACQUISITION ....................................................................................................................... 81

6.5.1 The Overall Plan ................................................................................................. 81 6.5.2 The RP for APs’ production ................................................................................ 82

6.6 RESETTLEMENT AND REHABILITATION OF AFFECTED SELF-EMPLOYED HOUSEHOLDS ................................................................................................................................ 94

6.7 RESETTLEMENT AND REHABILITATION OF AFFECTED SMALL BUSINESSES OR SHOPS 98


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6.8 REHABILITATION OF SPECIAL FACILITIES ....................................................... 100 6.9 RESETTLEMENT AND REHABILITATION OF AFFECTED VULNERABLE GROUPS

100 6.10 SCHEDULE OF RESETTLEMENT AND REHABILITATION .................................. 100 6.11 CAREER TRAINING FOR RELOCATORS............................................................. 104

VII. BUDGET AND MANAGEMENT OF RESETTLEMENT ......................................................... 105

7.1 COMPOSITION OF RESETTLEMENT FUND ...................................................... 105 7.1.1 Land acquisition compensation ......................................................................... 105 7.1.2 Relocation compensation .................................................................................. 105 7.1.3 Specialized compensation for rehabilitation and conversion ............................. 105 7.1.4 Administrative cost ............................................................................................ 105 7.1.5 Other relevant costs .......................................................................................... 106 7.1.6 Administrative cost ............................................................................................ 106 7.1.7 Contingency cost ............................................................................................... 106

7.2 RESETTLEMENT BUDGET ................................................................................. 106 7.3 ALLOCATION AND PAYMENT OF RESETTLEMENT FUND ............................... 110

7.3.1 Resettlement fund receivers ............................................................................... 110 7.3.2 Source and flow of resettlement fund ................................................................. 111

7.4 PAYMENT, MANAGEMENT AND MONITORING OF RESETTLEMENT FUND ... 112 7.4.1 Payment of resettlement fund............................................................................. 112 7.4.2 Management and monitoring of resettlement fund ............................................. 112

VIII. RESETTLEMENT ORGANIZATIONS ..................................................................................... 113

8.1 ORGANIZATIONAL STRUCTURE ........................................................................ 113 8.2 RESPONSIBILITIES OF ORGANIZATIONS ......................................................... 113 8.2 RESPONSIBILITIES OF ORGANIZATIONS ......................................................... 114

8.2.1 Tianshui Municipal Finance Bureau ................................................................... 114 8.2.2 TUCIC ................................................................................................................. 114 8.2.3 The Department of Land Reserve, TUCIC ......................................................... 114 8.2.4 External monitoring organization ........................................................................ 115

8.3 PERSONNEL AND FACILITIES OF RESETTLEMENT ORGANIZATIONS AT ALL LEVELS 115

8.4 MEASURES FOR INSTITUTIONAL STRENGTHENING ........................................ 116

IX. COMPLAINTS AND APPEALS ............................................................................................... 118

9.1 METHODS OF COLLECTING DISSATISFACTION AND COMPLAINTS ............... 118 9.2 PROCEDURE OF COMPLAINING AND APPEALING ............................................ 118 9.3 PRINCIPLES OF HANDLING COMPLAINTS ......................................................... 119 9.4 CONTENTS AND WAYS OF REPLYING TO COMPLAINTS .................................. 119

9.4.1 Replies to complaints ......................................................................................... 119 9.4.2 Ways of replying complaints ............................................................................... 119

9.5 RECORDS OF COMPLAINTS AND APPEALS AND RELEVANT FEEDBACK ...... 119 9.6 Contact Information for Complaints and Appeals ................................................... 120 9.7 Budget for Complaints and Appeals Management ................................................. 120

X. RESETTLEMENT MONITORING .......................................................................................... 121

10.1 INTERNAL MONITORING ...................................................................................... 121 10.1.1 Purpose and principles .................................................................................... 121 10.1.2 Procedure of internal monitoring ..................................................................... 121 10.1.3 Contents of internal monitoring ........................................................................ 122 10.1.4 Methods of internal monitoring ........................................................................ 123 10.1.5 Internal monitoring agency and personnel assignment ................................... 126 10.1.6 Responsibility of internal monitoring agency ................................................... 126 10.1.7 Cycle of internal monitoring and reporting ....................................................... 127

10.2 External Monitoring ................................................................................................. 127


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10.2.1 Purpose of external monitoring ........................................................................ 127 10.2.2 External monitoring organization and monitoring personnel ........................... 127 10.2.3 Assignments of the external monitoring organization ...................................... 128 10.2.4 Means and procedures of external monitoring ................................................ 128 10.2.5 Contents of independent monitoring ................................................................ 129 10.2.6 Reporting system for independent monitoring ................................................. 131

APPENDIX I RESETTLEMENT INFORMATION BOOKLET ........................................................ 133

I. General situation of the project .............................................................................................. 133

APPENDIX II Due Diligence Report on LAR of Maiji District New Road Network and Shetang Wei River Bridge 137

I. INTRODUCTION ........................................................................................................................ 138

II. DUE DILIGENCE ON MAIJI DISTRICT NEW ROAD NETWORK SUBPROJECT .................. 138

2.1 Backgrounds of the Project ..................................................................................... 138 2.2 Road Network Engineering of Maiji Newtown ........................................................ 138 2.3 Impact of the project ............................................................................................... 139 2.4 Compensation for the Land Acquisition .................................................................. 140 2.5 Employment Plan for Villagers ................................................................................ 141 2.6 Income Restoration ................................................................................................. 141 2.7 Relocation and Compensation for the Affected People .......................................... 142

III. DUE DILIGENCE ON SHETANG WEI RIVER BRIDGE SUBPROJECT ................................ 143

3.1 Construction of Shetang Wei River Bridge ............................................................. 143 3.2 Land Acquisition ...................................................................................................... 143

IV. CONCLUSIONS......................................................................................................................... 143

4.1 Construction of Maiji District New Road Network ................................................... 143 4.2 Construction of Shetang Wei River Bridge ............................................................. 144


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EXECUTIVE SUMMARY

E0. Introduction for the Updated Resettlement Plan

1. The resettlement plan (RP) is updated on the basis of detailed measurement survey (DMS). Construction content of each subcomponent does not change. During the phase of detailed design, land acquisition and house demolition has been reduced to a great extent. Physical impact indicator indicates that 45.03 mu of land is added during land acquisition because some villages include acquired land for other domestic project within Chengji road scope. These projects follow the same policy standards during land acquisition. House demolition was reduced to a great extent during the detailed design phase. House demolition impacts on 9,842 square meters (m2) of houses, 52 households (176 persons), 12 self-employed enterprises, 26 shops was reduced, while the compensation costs increased CNY5,836,078 due to the increasing compensation standard. The comparison for impact is shown in Table 0-1.

Table0-1 Impact comparison

Type Unit Planned Updated Difference Analysis

Land Acquisition

Mu 1,061.52 1,106.55 45.03

Zaoyuanzhuang decreased 53.57 mu of

acquired land and 17,060 m

2 of houses to

be demolished by using flood bank and existing

road. Maiji new town increased 17,300 m

2 of

houses to be demolished.

Housing m2 59,649 49,806.74 -9,842.26

Ahs HH 1,161 1,109 -52

Aps Person 5,441 5,265 -176

Self-employed enterprises

24 12 -12

Shops 46 20 -26

Cost CNY 232,055,000 290,419,078 58,364,078

2. Affected persons (AP) fully participated in updating RP. Compensation standard and resettlement scheme were discussed and agreed by APs. The details are shown in Chapter V.

3. By the end of December 31, 2012, 403.35 mu land had been acquired, including 358.74 mu farmland, 44.61 mu construction land and 7.1 mu state-owned land. Land acquired accounted for 39.68% of the total land. 302 households with 1,219 persons had been affected by farmland acquisition, accounting for 26.01% of the total affected households. 18,297 m2 residential houses had been demolished, accounting for 44.87%, 63 HHs with 323 persons had been affected. For the resettlement activities that have been implemented, involuntary resettlement policy as stipulated in the draft RP has executed accordingly and APs were paid higher compensation rates. Due diligence report can be seen in Resettlement External Monitoring and Evaluation Report (No. 2). The results of external monitoring show that rights of APs are ensured.


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E1. Description of the Project and Land Acquisition and Resettlement Impacts

4. The Gansu Tianshui Urban Infrastructure Development Project consists of four (4) components including: A. Qinzhou District Heating Network; B. Chengji Road & Flood Control; C. Tianshui Urban Road Improvement; and D. Capacity Development & Institutional Strengthening. The Tianshui ADB Project Management Office (TPMO) prepared two resettlement plans (RPs) for the Road and Bridge Component (“the Component” hereafter, consisting of Components B and C) and District Heating Component (Component A), respectively. The land acquisition and resettlement (LAR) for Subprojects of (a) Maiji District New Road Network and (b) Shetang Wei River Bridge of Component C has been completed by Tianshui Urban Construction Investment Group Co., Ltd. (TUCIC), the implementing agency (IA) of the project, and Tianshui National Economic Development Zone, respectively. According to Asian Development Bank’s (ADB’s) requirement, a due diligence report, as one of the appendixes of the Road and Bridge RP, was prepared by the TPMO. In addition, another due diligence report on LAR of Huaneng Combined Heating and Power Plant, which is the heat resource of the district heating component, was prepared as one of the appendixes of the District Heating RP. This RP is updated on the basis of DMS survey’s result.

5. The Road and Bridge Component will affect fifteen (15) village committees or community committees, three (3) towns of Yuquan and Huaniu, two (2) street offices of Shimaping and Xiguan, two (2) districts of Qinzhou and Maiji of Tianshui City. In total, 1,106.55 mu1 of land will be acquired permanently, while 140 mu of land will be occupied temporarily. Among the permanently occupied land, 1,029.17 mu are collectively-owned and 77.38 mu are state-owned. 1,109 households and 5,265 persons in total will be affected due to land acquisition. The total area of buildings to be demolished is 44,331.5 square meters. There are 12 small enterprises (self-employed) or institutions and 20 small shops (groceries or restaurants) to be affected by relocation. 198 households and 913 persons in total will be affected due to house relocation.

E2. Resettlement Principles and Entitlements

6. The RPs were prepared in compliance with the Land Administration Law of the People’s Republic of China (2004), Law of the People's Republic of China on Administration of the Urban Real Estate (2007 Revised); Regulations on the Expropriation of Houses on State-owned Land (19 January, 2011). They were also based on local policies regarding LAR in Gansu Province and Tianshui City, and ADB’s Safeguard Policy Statement (June 2009). Based on consultation with the local governments and affected persons (APs) and general practices in the project area, the IAs have adopted a set of resettlement principles and an entitlement matrix has been prepared for the Project. Compensation for land acquisition, residential housing, and non-residential buildings (shops and enterprises) will be paid to the affected owners or users. For land acquisition, compensation fees include land compensation, a resettlement subsidy, and compensation for crops and trees. The land acquisition compensation is rated according to the comprehensive land price based on regions regulated by the Tianshui Municipal Government (TMG). For demolition of small enterprises, shops, and private houses, compensation will be paid to the owners for rehabilitation of the APs. All house buildings will be paid compensation for housing site land, structure replacement and other relocation allowance; while house attachments build by the households will be compensated for

1 “mu” is a Chinese measuring unit for land and equals to 667 square meters.


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structure replacement cost without compensation for housing site land. The compensation payments will be in cash according to the appraised value of the land and fixed property assets. Compensation for crops, trees, other facilities, and temporary impacts will be paid directly to the APs. Income losses resulting from reduced production and/or sales and wages caused by the Project will be assessed and compensated in cash.

E3. Public Participation and Grievance

7. Public consultation has been the key for the preparation of the RP. From December 2009 to December 2012, a series of consultation activities were carried out with the APs, resettlement communities (RCs), institutions and enterprises, and other project stakeholders. The APs have participated in the preparation of the RP through the measurement and socioeconomic surveys, and community meetings. Their concerns and comments have been integrated into the RP. Further consultations will be held during the implementation of the RP. A grievance procedure has been established for the APs to redress their LAR issues, including four channels: (i) RCs or local resettlement offices (ROs), (ii) ROs of subprojects; (iii) TPMO; and (iv) taking legal action to the people’s court. APs can directly appeal to the court.

E4. Resettlement and Livelihood Rehabilitation

8. To minimize the resettlement impacts to APs and restore their living standards, detailed programs of restoration and relocation have been arranged in the RP. People can choose the available programs according to their requirements. Based on the socioeconomic survey and analysis of the affected households, and local experiences in relocation and resettlement of similar projects, measures for resettlement and income restoration have been prepared. These measures include monetary compensation, unified resettlement housing, provision of economically affordable housing, distribution of living expenses to the APs, employment creation by the local safeguard network, skill training for the APs, employment related to the Project and non-monetary support and so on.

9. About 77.38 mu of state-owned land and 1,029.17 mu of village collectively-owned land will be compensated in cash based on the type of land loss. About 140 mu of land will be acquired temporarily along the roads to be constructed, for which there will not be any livelihood losses and compensation will be paid in cash. In terms of house relocation, monetary compensation will be paid to 198 households based on their choices. About 162 households will be provided collective resettlement in new communities. Some households like to purchase economy housing; and 36 households opt to build houses themselves, who will get cash compensation for their structures and have the option to choose relocation sites in their own village subject to approval for building their houses from the village collective. About 12 small enterprises/businesses and 20 stores/shops will suffer demolition impacts. They will be compensated for their lost assets, and relocation and transitional allowance will be paid to them. No employees will suffer from income losses.

E5. Institutional Arrangement

10. The TPMO will assume the overall responsibility for the implementation of LAR, including the planning, implementation, financing, and reporting of LAR. The IA will take the primary responsibility for the resettlement consultation, implementation, and timely delivery of entitlements. To ensure smooth implementation, the staff in charge of LAR will undertake training on resettlement implementation organized by the TPMO. The resettlement implementation schedule has been prepared based on the preparation and construction


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timetable.

E6. Cost and Schedule

11. The total budget for LAR of the Component is about CNY290.419 million. It is anticipated that land acquisition and house demolition started in January 2011 and survey on project influence was conducted, which was prepared for updating RP. Land acquisition and house demolition will be completed by the end of May 2015.

E7. Monitoring and Evaluation

12. A detailed plan for both the internal and external monitoring and evaluation (M&E) is included in the RP. The TPMO will submit an internal monitoring report semi-annually to ADB. Furthermore, the TPMO has authorized the School of Economics and Management of Tongji University as an independent external monitoring organization in order to deliver a truly independent and unbiased external monitoring report. A thorough survey has been completed before the start of LAR and two monitoring reports have been submitted. During land acquisition and demolition, semi-annual monitoring reports will be submitted. After the project implemented for two years, monitoring and evaluation will be done every half a year and the report is submitted for ADB’s review.


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I． PROJECT OVERVIEW

1.1 INTRODUCTION OF TIANSHUI CITY

1. Tianshui City, located in the southeast of Gansu Province, is the second largest city within the province. Tianshui is the eastern gateway of Gansu Province, transportation hub of Shaanxi, Gansu, and Sichuan, and the area which Longhai Railway and Lanxi Highway pass through. The city consists of Qinzhou District, Maiji District, Wushan County, Gangu County, Qinan County, Qingshui County and Zhangjiachuan Autonomous County, with a total area of approximately 14,300 km2 and a total population of approximately 3.52 million. During the construction and development of the past 50 years, Tianshui has developed into a new industrial city integrating industries of electric and electronics, machinery and instruments, textiles and food, as well as the political, economic, trade, transportation, cultural and tourism center of south-eastern Gansu Province.

2. With the accelerating economic development of Tianshui City, in order to meet the needs of urban development, it has become imperative to accelerate the pace of urban infrastructure construction and enhance the city's overall competitiveness. In order to improve the investment environment and ensure Tianshui’s rapid economic development, the city must vigorously accelerate the building of the traffic environment, improve the construction of road network, enhance the service functions of the entire road network, ease cross-border traffic and completely solve the problems of narrow and low level roads, mixing of people and vehicles, and poor road exits.

3. This Project includes four (4) components including: A. Qinzhou District Heating Network; B. Chengji Road & Flood Control; C. Tianshui Urban Road Improvement; and D. Capacity Development & Institutional Strengthening.

4. This resettlement plan (RP) report covers all of the road and bridge components (“the Component” hereafter). Among them, land acquisition and resettlement (LAR) for Subprojects of (a) Maiji District New Road Network and (b) Shetang Wei River Bridge of Component C has been completed by Tianshui Urban Construction Investment Group Co. Ltd. (TUCIC), the implementing agency (IA) of the Project, and Tianshui National Economic Development Zone, respectively. The School of Economics and Management of Tongji University completed the due diligence report as attached to the RP in 2010.

5. The proposed roads will significantly promote the urban investment environment, speed up urban development, improve the urban road network, and ease traffic pressure within the City.

6. Another RP for Component A of Qinzhou District Heating Network was prepared by the TPMO separately.

1.2 PROJECT CONTENTS

7. The content of the RP includes Component B of Chengji Road & Flood Control, and subprojects of (c) Shuangqiao Xi River Bridge and (d) Qinzhou Chiyu Road of Component C of the project. The LAR related to subprojects of (a) Maiji District New Road Network and (b) Shetang Wei River Bridge of Component C are documented in the due diligence report attached on this RP.


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8. The civil work of the project has started from June 2012 and is expected to be completed in June 2015. The LAR activities started in January 2012 and will be completed in June 2015.

1.3 REGIONS AFFECTED BY THE COMPONENT

Component B: Chengji Road & Flood Control:

9. Chengji Road covers an area that is west to Minshan Road and east to Weibing North Road, with a total length of 12.00 km and a width of 40 meters (including greet belts). The road is planned to pass through the undeveloped area which includes ten (10) villagers of Zaoyuanzhuang, Yanhe, Sunjiaping, Xiaojiazhuang, Dengzhuang, Yangpo, Jianzhuang, Wuzhuang, and Xiakou, and to cross the Wei River at Xiakou village and connect with Jibin North Road in Maiji District. The road is also designed to cross under Tianchan Expressway with an underpass. A proposed Sunjiaping Bridge across the Jie River to connect Chengji Road and Xihuang Avenue, and a proposed Xiakou Bridge across the Wei River at the eastern end of Chengji Road will be built. At the same time, the embankment of the Jie River along Chengji Road will be built to control flood of the river.

Component C: Shuangqiao Xi River Bridge Subproject (c):

10. Shuangqiao Xi River Bridge in Qinzhou District of Tianshui City is planned for the urban main road, with a north-south direction. The project covers an area that is south to Xihuang Avenue, stretching along the existing bridge to the north, and then crossing over Jie River South Road and Jie River North Road, and connecting to Yongqing Road at the end. A simple interchange will be set at the intersection of Shuangqiao Xi River Bridge and the Jie River Road to meet regional traffic conversion. The main bridge width is 24 meters and the total length is 807 meters.

Component C: Qinzhou Chiyu Road Subproject (d):

11. Qinzhou Chiyu Road is an east-west trunk road of the city, which is east to Yongyingchi Road and west to Guihua Road, with a total length of 1,980 meters. The planning width is 40 meters. There is a bridge which needs to be removed and reconstructed across the Nan River along the planning road.

Table 1-1 Project Impacts of Subproject

No. Subproject Type

Permanent Land

Acquisition Area

(mu)

Temporary Land

Acquisition Area

(mu)

Type Demolished House Area

(m2)

Number of Household

(HH)

Population

(person)

Comments

1 Chengji Road & Flood

Control

Rural Cultivated-land

958.052 Loss Land

1,109 5,265

2 Construction

Land 31.78 100

Rural Resident

6,358.84 36 179

3 Stated-owned

Land 47.27

Small Business

1,389.92 4 9


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Notes: Construction land is collectively-owned land.

1.4 MEASURES TO MITIGATE IMPACTS

12. Resettlement has been considered as a key part of the Road and Bridge Component during the planning and implementing of the Component. With full consideration of construction costs, social impact, environmental impact and other factors, efforts should be made to minimize the impact of the resettlement.

1.4.1 Measures Adopted at the Project Design Stage

13. At the planning and design stage, for the purpose of minimizing the negative impact of project construction on local society and economy, the Tianshui Municipal Government (TMG) held many joint meetings, with attendance of the consulting units and design institutes, to discuss how to optimize the design program and minimize the negative social and economic impact of the resettlement.

14. During the consultations and discussions, the experts from Lanzhou Urban Construction and Design Institute provided their comments and expressed their opinions on project optimization from different aspects. At the design stage, the principles concluded for realizing project optimization and minimizing the impact of resettlement are described as below:

No. Subproject Type

Permanent Land

Acquisition Area

(mu)

Temporary Land

Acquisition Area

(mu)

Type Demolished House Area

(m2)

Number of Household

(HH)

Population

(person)

Comments

4 Qinzhou

Chiyu Road

Construction Land

37.51 10 Rural

Resident 16,976.69 59 298

5 Stated-owned

Land 18.56

Small Business

2,510.39 5 31

6 Shuangqiao

Jie River Bridge

Construction Land

1.83 10 Urban

Resident 3,696 48 221

7 Stated-owned

Land 11.55

Small Business

738.2 3 13

8 Shop 836.7 20 70

9 Maiji New

City Construction

Land 20

Rural Resident

17,300 55 215

Subtotal Loss Land

1,109 5,265

Subtotal Rural

Cultivated-land 958.05

Rural Resident

40,635.53 150 692

All rural households

whose houses are demolished lose land.

Subtotal Construction

Land 71.12 140

Urban Resident

3,696 48 221

Subtotal Stated-owned

Land 77.38

Small Business

4,638.51 12 53

Subtotal Shop 836.7 20 70 Total 1,106.55 140 49,806.74 1,339 6,301


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First, carry out project optimization and comparative selection, give consideration to the impact of project construction on local society and economy in as many aspects as possible, and try to occupy vacant land and minimize the occupation of cultivated land if land occupation is unavoidable.

Second, minimize relocation if it is unavoidable, and regard it as a key indicator for program optimization and comparative selection. Meanwhile, reasonable space is to be reserved for the connection of this Project with other municipal facilities.

Third, give full consideration to the resettlement and try to minimize LAR during the comparative selection among different design programs.

By using the dike and the existing road land, Zaoyuanzhuang village decreases 53.57 mu of cultivated land to be acquired and 17,060 square meters of housing to be demolished.

15. The original design of the Xiakou Bridge of Chengji Road involved a lot of demolition of Tianshui Forging Factory. A number of workshops and office buildings of the factory were to be affected by the Subproject, and involve about 60 workers’ working environment. The design institute considered this issue and adopted the measures of adjusting the road line or setting up a bridge to reduce the demolition of the buildings, which are estimated to be 6,000 square meters.

16. The design of Chengji Road component was optimized after the TPMO held discussions with the ADB technical assistance experts, by reducing the redline width from 60 to 40 meters (including green belts), which led to less occupation of land of 360.38 mu.

1.4.2 Measures to Be Adopted during LAR

17. In the event that the LAR is unavoidable, in order to mitigate the local impacts of the project construction, the measures to be taken are as follows:

Collect basic information, conduct an in-depth analysis of the local socio-economic status, and prepare a feasible RP to ensure that the displaced persons would not be influenced due to the implementation of the Project.

Encourage the participation and supervision of the public and listen to opinions and advice from the affected population.

Strengthen internal and external monitoring, establish highly efficient feedback mechanisms and channels, and minimize the period for processing information to ensure the timely solution of problems occurring in the construction. Notify displaced persons in advance, arrange sites for relocation, compensate the losses of displaced persons, minimize the idling period, and provide jobs for employees of affected enterprises.

During the relocation, get help and support from local governmental authorities to ensure the smooth implementation of resettlement, and to reduce the pressure and loss of displaced persons, institutions and enterprises.

1.4.3 Measures to Be Adopted during Construction

18. The following measures are to be adopted during construction to mitigate the impacts:


9

Reasonably prepare the construction plan and arrange traffic organization design, and minimize the impact of construction on the surrounding environment and traffic order. When excavating, all the factors shall be taken into full consideration. The excavation, installation of pipelines and backfilling shall be finished in the possible shortest time. For a road crossing another road with heavy traffic, the construction shall not be carried out in rush hours (for example the construction shall be carried out during the night to ensure smooth traffic flow in the day). It is forbidden to destroy existing pipelines. Warning signs, signals and leading marks shall be set up for vehicles and pedestrians. After the completion of the construction, the site shall be cleared and opened to the traffic.

Dredged spoil shall be timely carried out.

In the area within 200 meters away from residences of the civilians, the construction is forbidden from 10 pm to 8 am.

The construction contractors shall timely contact the local environmental sanitation department to clear and clean the wastes in the construction sites.

1.5 PREPARATION AND PROGRESS OF THE PROJECT

19. According to the need of the preparation for resettlement work, a deadline for any construction in the affected areas of all components is set as January 31, 2012. The construction status at the deadline is taken as the reference for resettlement survey. The RP of the Project is prepared according to the inventory of the properties affected by LAR, socioeconomic investigation of the APs, and data of the technical feasibility study report.

1.6 OWNERSHIP OF THE COMPONENT

20. The executing agency of the Project is the TMG. The Tianshui ADB Project Management Office (TPMO), on behalf of the TMG, is responsible for organizing the implementation of the Project and practicing the specific management functions. TUCIC, as the implementing agency, is responsible for implementation and construction of the Project.


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II. PROJECT IMPACT ANALYSIS

2.1 DEFINITION OF PROJECT IMPACT

21. A physical survey scope of the project impact is determined according to the project planning scope provided by the design institute. It consists of vehicle roads, non-motor vehicle lanes, pavement and greenbelts.

22. The Project impact is defined as follows:

(i) Permanent occupied land: all varieties of cultivated land and uncultivated land to be used permanently within the red line range of the Project. Cultivated land mainly includes dry land, vegetable land and so on; uncultivated land mainly includes waste land, housing site and so on.

(ii) Temporary land acquisition: all varieties of land to be used temporarily during construction period, which can be recovered after construction.

(iii) Relocated buildings: all buildings within the red line range of the Project, mainly including framework-structure houses, brick-concrete houses, brick-wood houses, simple houses, etc. According to the proprietary rights of the buildings, they may be classified as private buildings and buildings of enterprises and institutions. According to the purposes of the buildings, they may be classified as private dwelling, houses used by enterprises and institutions, and shops, etc.

(iv) Affected attachments to the ground: attachments to the ground within the red line range of the Project, mainly including pools, fences, wells, tombs, fruit trees, terraces, and etc.

(v) Affected public facilities: public service facilities within the range of project effect.

(vi) Affected family households: any family household with land, buildings and attachments to the ground within the red line range of the project or affected directly by the Project.

(vii) Affected communities: any community with land, buildings and attachments to the ground within the red line range of the project or affected directly by the Project.

(viii) Affected enterprises and institutions: any enterprise or institution with land, buildings and attachments to the ground within the red line range of the project or affected directly by the Project.

(ix) APs: all members of the affected family households and affected enterprises and institutions.

(x) Affected labors: labors working in the affected shops, enterprises or institutions or engaging in agricultural production on the land for acquisition.

(xi) Affected leaseholders: all persons leasing affected buildings for living or business operation based on the contracts.

(xii) Vulnerable groups: vulnerable groups are those who are more severely impacted by a project than others due to their poverty, gender, ethnicity, religion, language, lack of ownership or title to land, etc., and social groups in the residents that are


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easy to be harmed, lack capability of responding to social changes, and stand in the unfavorable status due to their weak social participation capability, social security, disability, poverty and others, mainly including solitary and widowed elder, female single-parent family, orphan, poor family, handicapped person and patient, and etc.

(xiii) Illegal structures: any structures built in the project area without official approval according to relevant regulatory procedures.

2.2 PROJECT IMPACT SURVEY

23. From October 2011 to October 2012, with the help of Urban Construction Design Institute of Lanzhou, the TPMO made arrangements and coordination and conducted a detailed measurement survey (DMS) for the households to be affected by the components.

24. Method of land survey: Investigators with leaders of affected towns and villages identify village borders and household borders according to measurement on sites. The area of the affected houses is measured on sites by investigators.

25. The resettlement survey is divided into three parts as follows:

(i) Literature survey (conducted during FSR stage)

a. Statistics of social economy of Tianshui City and the project area; and

b. Local laws and regulations related to LAR of the State, Gansu Province and Tianshui City.

(ii) Social and economic background survey (conducted during FSR stage)

a. Survey of basic circumstances of the affected families and vulnerable families in the area affected by the Project;

b. Public opinions and suggestions; and

c. Survey of basic circumstances of the affected villages’ population, labor force, industrial structure and cultivated land, etc.

(iii) Survey of affected objects in LAR (conducted during FSR stage and updated based on DMS)

a. Circumstance of land acquisition: location, category and area;

b. Relocated buildings and other attachments to the land: location, category, quantity and property rights;

c. Category and quantity of various public facilities; and

d. Basic circumstances and affected situation of self-employed households.

26. Based on the survey and consultation with the village committees, representatives of affected households, and local relevant government departments, the date of December 31, 2011 is set as the cut-off date of existing physical status in the affected areas. The village committees have announced the potential project construction and affected area as well as relevant regulations to the villagers. Any addition of new structures will not be considered for compensation. According to the survey, 1,109 households and 5,265 persons will be affected by land acquisition, while 198 households, 13 self-employed enterprises or small businesses, and 20 family stores or shops are affected by structure demolition. A sample


12

socio-economic survey was conducted among 150 affected households during loan processing based on FSR design.

2.3 PROJECT IMPACTS

27. The basic data of the LAR impact of the Component are summarized as follows:

Affected administrative divisions:

Two districts: Qinzhou District and Maiji District;

Three towns: Yuquan Town, Huaniu Town and Mapaoquan Town;

Two Street Offices: Shimaping Street Office and Xiguan Street Office; and

Fifteen village committees.

Affected by relocation:

Total area of relocated buildings: 49,806.74 square meters.

Households affected by relocation are 198 covering 44,331.5 square meters.

Affected rural households are 150 with 692 persons covering 40,635.5 square meters.

Affected urban households are 48 with 221 persons covering 3,696 square meters.

Relocated self-employed enterprises or small businesses are 12 with 53 persons affected, covering 4,638.51 square meters.

Relocated family stores or shops are 20 with 70 persons affected, covering 836.7 square meters.

Affected by land acquisition:

Land area to be acquired permanently is 1,106.55 mu, among which 958.05 mu are cultivated land, 71.12 mu are rural construction land, and 77.38 mu are state-owned land (SOL). The affected households are 1,109, with 5,265 persons. In addition, 140 mu of land will be temporarily occupied during the Component construction.

2.4 IMPACTS OF LAND ACQUISITION

2.4.1 Land Acquisition

28. According to the survey and statistical results, the total area of land to be acquired for the Component is 1,106.6 mu, which includes 958.052 mu of cultivated land, 71.12 mu are rural construction land, and 77.38 mu are state-owned land (SOL). The detailed information is shown in Table 2-1.


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Table 2-1 Land Acquisition by the Component

Component / Subproject

District Town Village Cultivated Land (mu)

Construction Land

(mu)

State- owned

Land (mu) Total (mu)

Chengji Road & Flood Control

Qinzhou Yuquan

Zaoyuanzhuang 0 6.29 47.27 53.6

Yanhe 115.14 25.49 0 140.6

Sunjiaping 133.718 0 0 133.7

Subtotal 248.858 31.78 47.27 327.9

Maiji Huaniu

Xiaojiazhuang 85.1 0 0 85.1

Dengzhuang 107.43 0 0 107.4

Yangpo 183.85 0 0 183.9

Shuiyanzhai 0 0 0 0.0

Jinzhuang 91.309 0 0 91.3

Wuzhuang 131.5 0 0 131.5

Xiakou 110.005 0 0 110.0

Subtotal 709.194 0 0 709.2

Subtotal 958.052 31.78 47.27 1037.1

Chiyu Road Qinzhou Yuquan

Yanxin 0 18.64 0 18.6

Xituanzhuang 0 9 0 9.0

Xishili 0 9.87 0 9.9

Military Land 0 0 11.46 11.5

Tianshuijun 4.0 4.0

Fengle Company,etc 3.1 3.1

Subtotal 0 37.51 18.56 56.1

Shuangqiao North / South

Road

Qinzhou

Shimaping Street Office

State-owned Land 0 0 6.8 6.8

Shimaping Village 0 1.83 0 1.8

Xiguan Street Office State-owned Land 0 0 4.75 4.8

Subtotal 0 1.83 11.55 13.4

Total 958.052 71.12 77.38 1106.6

The affected collectively-owned land has an impact on 1,109 households with 5,265 persons. Because of the linear distribution of the land, the land loss impact is rather limited. At village level, the average land loss is only 6.79%. For the affected households, the average land loss for 1,109 households is 26.9% with all of them with land acquisition impact ratios between 5 to 95%. Among them, 102 households or 10% have the ratio less than 10%; 703 households or 63.3% will have their land loss between 10 and 30%; 275 households or 24.7% will have their land loss between 30 and 70%; 29 households or 2.6% will have their land loss between 70 and 90%. More details of the affected population are presented in Table 2-2. The land area of households with over 10% of land affected before


14

and after land acquisition is shown in Table 2-3. As indicated in the Table, even for those 1,007 households with land loss over 10%, the average area of collectively-owned land loss is 2.34 mu. In terms of potential income impact due to land loss, since average income from farming is about 51.7% (see Table 3-12), the potential income loss for those 102 households with land loss less than 10% would be less than 5.2%; and for those 1,007 households with land loss between 10% to 90%, their potential income loss would be ranged from 5.2% to 45%. For the households with income loss more than 20%, livelihood assistance is offered and detailed rehabilitation measures have been proposed and included in chapter VI.


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Table 2-2 Collectively-owned Land Affected by the Component

Subcomponent Town Village

Total Cultivated

Land

Cultivated Land

Acquisition

Land Acquisition

Ratio Population

Households

Ratio Distribution (HH)

mu Mu person HH

≤10%

11%-30%

31%-70%

71%-90%

>10%


Yuquan

Zaoyuan zhuang 1600 0 0.00% 0 0 0 0 0 0 0

Yanhe 900 115.14 12.79% 450 108 12 60 35 1 96

Sunjiaping 1500 133.718 8.91% 468 120 9 98 11 2 111

Subtotal 4000 248.858 6.22% 918 228 21 158 46 3 207

Huaniu

Xiaojiazhuang 1160 85.1 7.34% 628 127 19 65 39 4 108

Dengzhuang 990 107.43 10.85% 475 96 9 44 37 6 87

Yangpo 1457 183.85 12.62% 1012 206 16 146 37 7 190

Shuiyanzhai 1830 0 0.00% 0 0 0 0 0 0 0

Jinzhuang 1450 91.309 6.30% 514 104 10 54 38 2 94

Wuzhuang 1616 131.5 8.14% 1085 220 25 151 41 3 195

Xiakou 1598 110.005 6.88% 633 128 2 85 37 4 126

Subtotal 10101 709.194 7.02% 4347 881 81 545 229 26 800

Total 14101 958.052 6.79% 5265 1109

102 703 275 29 1007


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Table 2-3 Cultivated Lands Before and After Land Acquisition of Households Whose Lands Are Acquired Over 10%

Component District Town Village

Number of Household with Land

Acquired in 11 to 90%

Cultivated Land Per

Household Prior To

Land Acquisition

Cultivated Land Per

Household After Land Acquisition

HH Mu mu

Chengji Road &

Flood Control

Qinzhou District

Yuquan

Zaoyuan 0 0 0

Yanhe 96 3.13 2.06

Sunjiaping 111 3.27 2.16

Subtotal

207 3.2 2.11

Maiji District Huaniu

Xiaojiazhuang

108 3.05 2.38

Dengzhuang 87 3.89 2.78

Yangpo 190 5.02 4.13

Shuiyanzhai 0 3.46 3.46

Jinzhuang 94 3.42 2.54

Wuzhuang 195 3.45 2.85

Xiakou 126 3.52 2.66

Subtotal 800 3.68 2.87

Total 1007 3.21 2.34

29. For affected households with average farmland in 3 to 4 mu per household, 54 households will lose their farmland less than 10%; 620 households will lose their farmland between 10 to 90%. For affected households with average farmland in 4 to 5 mu per household, 38 households will lose their farmland smaller than 10%; 354 households will lose their farmland between 10 to 90%. For affected households with average farmland in 5 to 8 mu per household, 10 households will lose their farmland smaller than 10%; 33 households will lose their farmland between 10 to 90%. The distribution of the affected households is presented in Table 2-4.


17

Table 2-4 Distribution of Affected Households with Different Ranges of Land Loss


Average Farmland Per Household (mu/HH) Total

3-4 4-5 5-8

Number of Affected Households with Different Ranges of Land Loss

<10% 11 – 90% <10% 11 – 90% <10% 11 – 90% <10% 11 – 90%

Chengji Road &

Flood Control

Qinzhou District

Yuquan

Zaoyuan 0 0 0 0 0 0 0 0

Yanhe 5 40 7 44 0 12 12 96

Sunjiaping 6 65 3 43 0 3 9 111

Subtotal

11 105 10 87 0 15 21 207

Maiji District

Huaniu

Xiaojiazhuang 8 58 5 38 6 12 19 108

Dengzhuang 6 53 3 34 0 9 87

Yangpo 9 136 3 48 4 6 16 190

Shuiyanzhai 0 0 0 0 0 0 0 0

Jinzhuang 7 59 3 35 0 0 10 94

Wuzhuang 11 130 14 65 0 0 25 195

Xiakou 2 79 0 47 0 0 2 126

Subtotal 43 515 28 267 10 18 81 800

Total 54 620 38 354 10 33 102 1007


18

30. On the individual level, the average per capita land holding was reduced from 0.93-1.18 mu to 0.7-1.04 mu. The remaining farmland of affected villagers after the land acquisition decreased from 1.07 mu to 0.88 mu per capita, as presented in Table 2-5. There were no households that lost all of farmland in the Component. All of affected farmers still have land to plant and continue their agriculture production.

Table 2-5 Per Capita Land before and after Land Acquisition


Affected Persons

Land Area

before Acquisiti

on

Acquired Land

Land Area after

Acquisition

Land per Capita before Acquisition

Land per Capita after Acquisition

person mu mu mu mu/person Mu/person


Qinzhou District

Yuquan

Zaoyuan 0 0 0 0.0 0.00 0.00

Yanhe 450 454.2 115.1 339.1 1.01 0.75

Sunjiaping 468 500.0 133.7 366.3 1.07 0.78

Subtotal 918 954.2 248.9 705.3 1.04 0.77

Maiji District

Huaniu

Xiaojiazhuang

628 740.3 85.1 655.2 1.18 1.04

Dengzhuang 475 440.0 107.4 332.6 0.93 0.70

Yangpo 1012 1402.5 183.9 1218.7 1.39 1.20

Shuiyanzhai 0 0 0 0.0 0.00 0.00

Jinzhuang 514 478.7 91.3 387.4 0.93 0.75

Wuzhuang 1085 1039.5 131.5 908.0 0.96 0.84

Xiakou 633 557.3 110.0 447.3 0.88 0.71

Subtotal 4347 4658.4 709.2 3949.2 1.07 0.91

Total 5265 5612.64 958.1 4654.6 1.07 0.88

2.4.2 Temporary Land Occupation

31. The Component will occupy 140 mu of temporary land, in which Chengji Road & Flood Control Component will use 100 mu, Chiyu Road Subproject will use 10 mu, Shuangqiao Xi River Bridge Subproject will use 10 mu, and Maiji New Town Subproject will use 20 mu. Waste land is occupied by taking consideration of cost.

2.5 AFFECTED BUILDINGS

2.5.1 Affected Residential Buildings

32. According to the survey, the total area of residential buildings to be demolished for the Component is 44,331 square meters, including: 40,635 square meters of the rural residential houses and 3,696 square meters of urban buildings, affecting 150 households (692 persons) of


19

rural residents and 48 households (221 persons) of urban residents. Table 2-6 presents the details of the buildings to be demolished in structure types.

33. In addition, 198 electric meters, 198 water meters, 198 fixed telephones, 15 sets of air-conditioners, 28 lines of broadband network, as well as 205 sets of cable TVs need to be removed from demolished buildings and reset up in new buildings.

2.5.2 Affected Buildings of Enterprises and Institutions

34. The Component will affect 12 self-employed households and 53 employees. Table 2-7 presents the details of the affected self-employed enterprises or small businesses. The total area of self-employed households affected by the Component is 4,638.51 square meters.

35. The Component will affect 20 stores or shops, all of which are tenants. 10 households’ houses are residential and are transformed into stores or shops by their owners. The other 10 households rent houses from Tianshui Yitong Materials Recycling Corporation. The total area of the affected stores or shops is 836.7 square meters. Table 2-8 presents the details of the stores or shops.


20

Table 2-6 Buildings to Be Demolished

Name District Town/ Street Office

Village/ Enterprise

Rural Urban Brick- concrete

Brick- wood

Brick- earth -wood

Earth- wood

Attachments Simple structures

Total

HH Person HH Person m2 m

2 m

2 m

2 m

2 m

2 m

2

Chengji Road & Flood

Control

Qinzhou Yuquan

Zaoyuan zhuang 1 5 225 0 0 0 0 0 225

Yanhe 34 168 2189.47 2156.72 365.24 442.77 548.95 180.69 5883.84

Maiji Huaniu Yangpo 1 6 0 250 0 0 0 0 250

Subtotal 36 179 0 0 2414.47 2546.72 365.24 442.77 548.95 180.69 6358.84

State-owned Land

0 0 0 0 0 0

State-owned Land

0 0 0 0 0 0

State-owned Land

0 0 0 0 0 0 0

Subtotal 0 0 0 0 0 0 0 0 0 0 0

Total 36 179 0 0 2414.47 2546.72 365.24 442.77 548.95 180.69 6358.84

Chiyu Road Qinzhou

Yuquan Xituanzhuang 7 32 1949 0 1949

Yuquan Yanxin 35 189 11938.69 0 0 0 0 0 11938.69

Yuquan Xishili 7 34 1949 0 1949

Yuquan Tianshuijun 10 43 1140 1140

Subtotal 59 298 0 0 16976.69 0 0 0 0 0 16976.69

Shuangqiao North / South

Road

State-owned Land

Tianshui Yitong

Materials Recycling

Corporation

Huanxi Community

Office 0 48 221 3696 3696

Subtotal 0 0 48 221 3696 0 0 0 0 0 3696

Maiji New Town

Huwang 25 98 0 0 8000 8000

Mapaoquan 30 117 0 0 9300 9300

Subtotal 55 215 0 0 17300 0 0 0 0 0 17300

Total 150 692 48 221 40387.16 2406.72 365.24 442.77 548.95 180.69 44331.53


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Table 2-7 Affected Small Enterprises or Businesses

Name of Sub project

District Town Village Name

House hold

Worker Brick-

concrete Brick wood

Attachment

Steel structure

Simple structure

Total Property Owner

HH person m2 m

2 m

2 m

2 m

2 m

2


Qinzhou Yuquan

Zaoyuan

Zhanglijun’s Kennel

1 2 0 140.95 140.95

Zaoyuan Village Committee

Subtotal 1 2 0 140.95 0 0 0 140.95

Yanhe

Well room 1 1 12.4 12.71 25.11

Primary School 1 201.62 41.58 243.2

Xianhaiping 1 6 369.6 409.56 201.5 980.66

Yanhe Village Committee

Subtotal 3 7 583.62 463.85 201.5 0 0 1248.97

Total 4 9 583.62 604.8 201.5 0 0 1389.92

Chiyu Road

Qinzhou Yuquan

Xishili Office occupancy 1 2 174 174

Xishili Village Committee

Fengle Corporation

Office occupancy 1 8 866.47 866.47

Tianshui Industry and Commerce Agency

Office occupancy

1 9 213.96 213.96

Tianshui Market Construction Office

Office occupancy

1 12 500 500

Troops 1 0 563.36 192.6 755.96

Subtotal 5 31 2317.79 0 0 0 0 2510.39

Shuangqiao North / South Road

Qinzhou


State-owned Land

Tianshui YiTong Materials Recycling Corporation on SOL

1 10 420.2 420.2

Xiguan Street Office (North Road)

Shimaping

Tianshui Weiguang Corporation on SOL

1 3 244 0 244


State-owned Land Public Toilet 1 0 74 74

Subtotal 3 13 738.2 0 0 0 0 738.2


22

Name of Sub project

District Town Village Name

House hold

Worker Brick-

concrete Brick wood

Attachment

Steel structure

Simple structure

Total Property Owner

HH person m2 m

2 m

2 m

2 m

2 m

2

Total 12 53 3639.61 797.4 201.5 0 0 4638.51


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Table 2-8 Affected Stores or Shops

Name of Project

District Name Type Household Worker

Brick- concrete

Brick-wood Attachment Steel

structure Simple

structure Total Property

Owner HH person m

2 m

2 m

2 m

2 m

2 m

2

Shuangqiao South Road

Qinzhou


Shops 10 40 416.7 416.7 Shimaping

Street Office


Shops 10 30 420 420

Total 20 70 836.7 0 0 0 0 836.7

Affected shops include: (1)Shishangjiedi Accessories; (2) Leibao Roller-skating Club; (3)Chanmao Fried Dished and Noodles; (4) Mini Wosu Professional Barbershop; (5) Sisters’ hot Spicy Pot; (6) Oriental digital communication; (7)Xinyu Chicken Soup Casserole; (8) Qingxiangniu restaurant; (9)Shihui shop; (10) Kaida Supermarket; (11)Qishan Restaurant; (12) Xianxiang Dessert and Scone; (13)Handmade Noodles;(14) Clinic; (15) Xiaxia Steamed Buns;(16) Green Oil Lane Grain and Oil Sales Departments; (17) Xinguang Shop; (18) Qinzhou Qingsong Chemist; (19) Shunfa Plastic Steel Decoration Department; (20) Xuanxin Aluminium-Plastic Door And Window.


24

2.5.3 Affected Temporary Buildings

36. There are 930.45 square meters of temporary buildings, which is included in the total affected area. These temporary buildings are considered into the affected area. TMG will compensate these temporary buildings according to the relevant compensation policy of Tianshui City. In the affected region there are no households whose buildings are all temporary buildings. Table 2-9 presents more detail. There are 30 households in total have temporary structures. The building structure of temporary houses is wood-brick structure and simple structure.

Table2-9 Temporary Buildings Affected by the Project

Village Area (m2) Household (HH)

Yangpo 150 1

Yanhe 750.45 28

Zaoyuanzhuang 30 1

Total 930.45 30

2.5.4 Affected Attachments on the Buildings

37. The attachments affected by the component include 105 poles, 4 transformers, 215 trees and 12 wells. The details are presented in Table 2-10.

Table2-10 Affected Attachments

Item Quantity

Poles 105

Transformers 4

Trees 215

Wells 12

2.6 Affected Vulnerable Groups

2.6.1 Identification of Affected Vulnerable Groups

38. Vulnerable groups refer to persons who are easy to be hurt and difficult to adapt to the changes brought by the project construction. Vulnerable groups are mainly divided as follows:

(i) Lonely elder: the single elder who is over 65 years old and without a person fulfilling the statutory duty of maintenance.

(ii) Single-parent family: the head of the family is single and has underage child.

(iii) Orphan: the children without parents and younger than 16 years old.

(iv) Poor family: the urban families under the minimum living guarantee line (MLGL), and rural poor households that have been specially determined.

(v) The disabled: the persons, in psychology, physiology or body constitution, having


25

some tissue or function lost or off-normal, or the ability of participating in some activity in the normal way lost totally or partially (subject to holding the Disabled Person Certificate of the People’s Republic of China).

(vi) Other families having special difficulties.

39. The determination of vulnerable groups is carried out in accordance with relevant policies and regulations, and results of the field survey. In the implementation process, the RO will confirm it through door-to-door interviews, neighboring interviews and proving of community resident committee.

40. After the investigation and confirmation, it is not found that ethnic minority families will be affected by the Project.

2.6.2 Affected Families of Vulnerable Groups

41. According to the survey, there are 22 vulnerable families with 28 members to be affected by the Project. The families have members suffering from diseases, or have disabled persons, or have no or few incomes. Their family status is presented in Table 2-11.

Table 2-11 Affected Vulnerable Families

Type

Affected by Land Acquisition Only

Affected by both Land and Demolition

Total

HH person HH person HH Person

Disabled family 9 11 2 3 11 14

Women supported family 1

1 0 0 1 1

Poor family 5 7 2 2 7 9

Lonely elder family 1 1 2 3 3 4

Total 16 20 6 8 22 28


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III. ANALYSIS ON SOCIO-ECONOMIC SURVEY OF PROJECT IMPACT

3.1 GENERAL INTRODUCTION OF SOCIO-ECONOMIC DEVELOPMENT OF THE REGIONS AFFECTED BY THE PROJECT

42. The basic socio-economic characteristics of Qinzhou District and Maiji District affected by the Component are presented in Table 3-1.

Table 3-1 Basic Socioeconomic Characteristics of Affected Regions (2008)

Affected Regions Qinzhou District Maiji District

Land area (km2) 2,409 3,452

Permanent population (10,000 persons) 65.58 59.65

Population density (person/km2) 272 173

Per capita disposable income of urban residents (CNY)

9,050 9,050

Per-capita net income of rural residents (CNY) 2,377 2,165

Gross value of production (billion CNY) 7.32 6.12

Financial revenue (billion CNY) 0.603 0.386

Economic growth rate (%) 11.1 10.80

Source: Tianshui Socioeconomic Statistical Yearbook 2009, Tianshui Statistics Bureau

3.2 GENERAL SITUATION OF AFFECTED VILLAGES

43. The resettlement survey was carried out on the current situation of the affected communities and villages. For Chengji Road & Flood Control Component, the villages affected by LAR are: Zaoyuanzhuang, Yanjiahe, Xianjialu in Yuquan Town of Qinzhou District, and Xiaojiazhuang, Dengzhuang, Yangpo, Shuiyanzhai, Jinzhuang, Wuzhuang, Xiakou in Huaniu Town of Maiji District. From the socioeconomic survey, these villages, located near suburb areas of Tianshui City, have the following common characteristics.

The villages implemented the traditional organizational system of villager committee.

For the villages, agricultural production hasn’t been the major income source for a long time. According to the data in Table 3-3, the income from agricultural production of most villages ranges from 24% to 51% of the total income, averaging 42%, while operating income of non-agricultural production is an important income source of the APs.

The two affected districts, Qinzhou and Maiji, are the main urban areas in Tianshui City. The industrial structure of the districts is presented in Table 3-2. The proportion of the primary industry, agriculture production value, is relatively low. The total income, agricultural income and cultivated land conditions of the affected villages are provided in Table 3-3. The proportion of agriculture income of average households in the affected villages is less than 50%.

Table 3-2 Composition of Industrial Structures in Affected Districts

District Primary Industry (%) Secondary Industry (%) Tertiary Industry (%)

Qinzhou 7.8 44.9 47.3

Maiji 9.9 45.8 44.3


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The villages affected by the Project are located in areas under vigorous development with a large number of opportunities for employment and economic development. Chengji Road & Flood Control Component will connect Qinzhou District and Maiji District, which is a key region of development and construction of Tianshui City. The implementation of these important construction projects and development plans brings along unprecedented development opportunities to the affected villagers. The general situation of the affected villages is presented in Table 3-3.

The land acquisition of 958.05 mu will directly affected 1,109 households and 5,265 persons from these villages, averaging 0.86 mu per household. Among them, 120 households would lose less than 10% of their land holding and 620 households would lose 10-90% of their land holding. Given the fact that in the project affected villages, farming income account for 42% of total income, the 17.07% loss of farmland would result in income loss of 7.2%, which is not significant for most affected households. See Table 3-4 for details.


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Table 3-3 General Socioeconomic Situation of the Affected Villages

Name of project

District Town Village

Number of HH

Population

Male Femal

e

Total cultivated

land

Net income

per capita

Agriculture

income

HH person person perso

n mu CNY CNY

Chengji Road

Qinzhou Yuquan

Zaoyuanzhuang

300 1,020 529 491 1,600 3,500 1,225

Yanhe 214 998 538 460 900 2,500 1,250

Sunjiaping 360 1,500 823 677 1,500 2,177 1,089

Subtotal (a) 874 3,518 1,890 1,628 4,000 8,177 3,564

Maiji Huaniu

Xiaojiazhuang

199 985 509 476 1,160 1,910 764

Dengzhuang

216 1,069 551 518 990 1,900 760

Yangpo 214 1,059 545 514 1,457 1,900 760

Shuiyanzhai 385 1,905 979 926 1,830 1,810 453

Jinzhuang 315 1,559 801 758 1,450 1,970 847

Wuzhuang 342 1,692 895 797 1,616 1,960 960

Xiakou 367 1,816 946 870 1,598 1,990 1,015

Subtotal (b) 2,038 10,085 5,226 4,859 10,101 13,440 5,559

Subtotal (a+b) 2,912 13,603 7,116 6,487 14,101 21,617 9,123

Chiyu Road Qinzhou Yuquan

Yanxin 231 858 420 438 322 3,549 1,170

Xituanzhuang

310 1,333 679 654 854.5 3,532 1,135

Xishili 237 1,019 526 493 608 3,525 1,125

Subtotal 778 3,210 1,625 1,585 1,784.5 10,606 3,430

Total 3,690 16,813 8,741 8,072 15,885.5 32,223 12,553


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Table 3-4 Land Loss Impact by Affected Persons after Land Acquisition

District Towns Village

Total Income Per

Capita

Per Capita Farming Income

Percent of

Farming Income

Total Affected

HH

Total Affected Persons

Total Land

Holding

Total Acquired farmland

Percent of Farmland

Loss

Percent Income Loss

CNY/person CNY/person % mu mu % %

Qinzhou Yuquan

Zaoyuanzhuang 3,500 1,225 35.0% 0 0 0 0 0.00% 0.00%

Yanhe 2,500 1,250 50.0% 108 450 454.2 115.14 25.35% 12.67%

Sunjiaping 2,177 1,089 50.0% 120 468 500.0 133.72 26.74% 13.37%

Maiji Huaniu

Xiaojiazhuang 1,910 764 40.0% 127 628 740.3 85.1 11.50% 4.60%

Dengzhuang 1,900 760 40.0% 96 475 440 107.43 24.42% 9.77%

Yangpo 1,900 760 40.0% 206 1012 1,402.5 183.85 13.11% 5.24%

Shuiyanzhai 1,810 453 25.0% 0 0 0 0 0.00% 0.00%

Jinzhuang 1,970 847 43.0% 104 514 478.73 91.31 19.07% 8.20%

Wuzhuang 1,960 960 49.0% 220 1085 1039.53 131.5 12.65% 6.20%

Xiakou 1,990 1,015 51.0% 128 633 557.34 110.01 19.74% 10.07%

Total 2,162 912 42.2% 1,109 5,265 5,613 958.05 17.07% 7.20%

Note: Here, the percent of farming income is based on village statistics, which is slightly different from percent of farming income based on sample households survey.


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3.3 ANALYSIS ON AFFECTED FAMILIES

44. In order to deeply understand the basic information of the affected families and provide a reasonable resettlement program with solid basis, the IA of TUCIC conducted a sampling survey for the socioeconomic situation of the affected families during loan processing. The surveyed families were randomly sampled from the farmer families affected by LAR.

3.3.1 Basic Information of Affected Family Members

45. 203 households were surveyed for socio-economic analysis for the Component, which account for 15% of total affected households. The sample distribution of the 203 households is presented in Table 3-5. The basic information of the surveyed 203 families is presented in Table 3-6. From this table, we found that: (i) no ethnic minority families were to be affected by this Project; (ii) the percentage of male accounted for 52%; and (iii) age of 16-35 accounted for 17.9%, age of 36-50 accounted for 37.9%, and age of 51-60 accounted for 9%. The education level of junior high school accounted for 23.5%, while the education level of senior high school accounted for 35.7%.

Table 3-5 Distribution of Sampling Households

Town/Street Office Rural (HH) Urban (HH) Total

Affected HH

Sampling HH in Total

Affected HH (%)

Yuquan Town 133 348 38.2

Huaniu Town 18 813 2.2

Qilidun Street Office 52 212 24.5

Total 151 52 1,373 14.8

Table 3-6 Basic Characteristics of the APs

Item Indicator Characteristic

Value Proportion (%)

Sample households Household (HH) 203 100

Population (person) 775 100

Gender Male (person) 403 52.0

Female (person) 372 48.0

Age composition

<16 173 22.3

16-35 139 17.9

36-50 293 37.8

51-60 70 9.0

61-70 69 9.0

>71 31 4.0

Total 775 100

Nationality Han (person) 775 100

Others (person) 0 0


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Item Indicator Characteristic

Value Proportion (%)

Education

Illiteracy (person) 89 11.5

Semi-illiteracy (person) 68 8.8

Primary school (person) 105 13.5

Junior middle school (person) 182 23.5

Senior middle school (person) 277 35.7

College and above (person) 54 7.0

Total 775 100.0

46. In the surveyed 589 persons of 151 rural sample households, 83 persons were engaging in pure agricultural work, 104 had a part-time job, and 180 were working outside. In the surveyed 186 persons of 52 households in urban areas, 52 persons were working at factory, 32 had a part-time job, and 51 were working outside the city. The employment situation of the sample households is presented in Table 3-7.

47. In the 151 rural sample households, all of the households are affected by land acquisition, in which 120 households are affected by both house demolition and land acquisition. The total land holding is 519.3 mu, averaging 3.44 mu per household or 0.88 mu per capita. The Project will acquire a total of 74.64 mu of farmland, accounting for 14.3% of land loss for the affected households. For rural residents, part-time jobs refer to, without leaving home, working in the nearby labor market and getting corresponding payment. The understanding of part-time jobs by urban residents primarily means that the person has no fixed job, but obtains the corresponding employment opportunity and payment along with the variance in the requirement of labor market. In the employment, men and women basically get equal pay for equal work. Because there are some types of work in the labor market that are not suitable for women, generally the income level of men is higher than women. The average income level of women is 45% to 70% of that of men.

Table 3-7 Employment Situation of the APs

Indicator Rural Urban Total

Sample HH HH 151 52 203

Person 589 186 775

Occupation

Pure agricultural work 83 - 83

Urban factory or enterprise - 52 52

Part-time job 104 32 136

Working outside 180 51 231

Total 367 135 502


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3.3.2 Economic Situation of Affected Families

1) Conditions of affected houses

48. According to the survey on 74 rural sample households (among 120 households affected by both land loss and house demolition, only 74 households answered the questions about their current housing conditions), the smallest main house area was 19.0 square meters while the largest area was 368.2 square meters. The average area was 137.4 square meters. There were 10 households having temporary building; the average area added up to 15.2 square meters.

49. In respect to the 52 urban households, 28 of them had an area of 45.0 square meters while 18 of them had 55.0 square meters. The average area was 55.0 square meters. More details are presented in Table 3-8.

Table 3-8 House Area Distribution of Surveyed Families

Area of Houses (m2) Rural (HH) Urban (HH) Total (HH)

Under 45 6 28 34

45-70 4 18 22

70-90 4 6 10

90-100 10 0 10

100-150 25 0 25

150-200 16 0 16

Above 200 9 0 9

Total 74 52 126

50. The investigation data shows that the service year of rural residents’ houses was between 5 and 20 years. The houses of the urban residents were built by their companies, with a service year of 5 to 20 years. 80.7% of these buildings were concrete-brick structures. Houses of the urban residents were mainly the apartment buildings owned by Hailin Bearing Factory, Tianshui Battery Factory, Tianshui Mills, and Tianshui Yitong Materials Recycling Corporation. The buildings have become private properties after the house ownership reform. The ages of the sample affected households are shown in Table 3-9.

Table 3-9 Service Years of Houses of Surveyed Families

Service Years of Houses

Rural (HH) Urban (HH) Total (HH)

Less than 5 30 0 30

5~10 35 30 65

10~20 9 22 31

20~25 0 0 0

More than 25 0 0 0

Total 74 52 126


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2) Economic situation of affected urban families

51. The disposable income per capita of the surveyed 52 urban households was CNY9,355, The composition of income of urban residents is presented in Table 3-10. Consumption expenditure per capita was CNY6,973, of which food expenditure added up to CNY2,685, followed by clothing of CNY828. The basic situation of the sample households is presented in Table 3-11.

Table 3-10 Income of Sample Urban Residents

Number of households surveyed HH 52

Number of family members person 186

Per capita disposable income CNY/person 9,355

Income composition

Formal work CNY 706,160

Part-time work CNY 268,228

Work outside CNY 765,612

Total CNY 1,740,000

Secondary Industry CNY 589,860

Tertiary Industry CNY 1,150,140

Total CNY 1,740,000

Table 3-11 Economic Situation of Urban Families

Indicator Unit Amount

Number of household sample HH 52

Number of family member person 186

Disposable income per capita CNY 9,355

Consumption expenditure per capita

Total CNY 6,972.9

Food CNY 2,685

Clothes CNY 828.1

Equipment CNY 504.2

Medical expenditure CNY 466.1

Transportation and communication CNY 831.0

Leisure CNY 719.4

Housing CNY 663.8

Others CNY 275.3

3) Economic situation of affected rural families

52. The work composition of the labors includes: (a) Off-farm work in other places. Such people accounted for about 30% of total young and middle-aged labors; (b) Transportation business. People working in this sector accounted for about 10% of the total labor force; (c) Operating shops and stores. Such people accounted for about 10% of the total; (d) Private workshop processing. Such people accounted for about 10% of the total; (e) Catering services. Such people accounted for about 5% of the total; (f) Working at township enterprises. Such


34

people accounted for about 5% of the total; and (g) Pure agriculture. Such people accounted for about 20% of the total.

53. The analysis on the data of the sampling survey shows that the average income of the surveyed families was CNY3,728 in 2009, of which 31.0% was gained from full-time work, 61.2% from operating income including about 52% of income from agriculture, forestry and animal husbandry, 6.0% from transferred income, and 1.9% from property income. The income from agriculture, forestry and animal husbandry of the surveyed families are still one of important income sources. Land loss due to the Component will affect their income depending on amount of the land loss. However, the survey also shows that the low income families had a lower regular salary income, and depended on working outside the village. The high income families had a relatively higher salary income. With urbanization and farmland reduce in the suburb region of Tianshui City it is important for the affected families to increase salary income. Therefore, the key problem of the resettlement of the affected families is how to guarantee the members of the affected families to find a stable working position.

54. As for the contribution to income source, averagely, men in families contributed to 65% of the income, comparing with 35% of women. The status reflected by the survey data echoes with the work division mode of the affected families of “Men go out to work while women look after the house” summarized from the field survey. The source of income is presented in Table 3-12. In terms of expenditure, the average expenditure of surveyed families in 2009 was CNY3,636. For the expenditure structure, the expenditure on living consumption accounted for 72.8%, ranking the first; and that on family operation accounted for 22.7%, ranking the second. The expenditure on purchasing fixed assets accounted for 2.4%. The survey shows that the lower a family’s income was, the higher the proportion of their expenditures for basic needs of food purchases, tuition and education, medicine and medical care presented. The families with a relatively higher income spent more on housing in addition to meeting the basic consumption needs. The details are presented in Table 3-13.

Table 3-12 Incomes and Their Sources of All Sampling Families in 2009

Income

Total Amount

Proportion Contribution by gender Average per

Capita Male Female

CNY % % % CNY

Wage Subtotal 679,769 31.0 83 17 1,154.1

Work out of farm 488,166 22.2 75 25 828.8

Family Operation

Subtotal 1,342,960 61.2 55 45 2280.1

Primary industry 1,135,903 51.7 50 50 1,928.5

Agricultural 896,143 40.8 33 67 1,521.5

Forestry 105,618 4.8 45 55 179.3

Livestock 134,133 6.1 45 55 227.7

Secondary industry

31,974 1.5 60 40 54.3

Tertiary industry 175,750 8.0 60 40 298.4

Transferred in

Subtotal 132,114 6.0 80 20 224.3

Income brought back

17,464 0.8 70 30 29.7


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Income

Total Amount

Proportion Contribution by gender Average per

Capita Male Female

CNY % % % CNY

Property 40,676 1.9 1.9 40 69.1

Total 2,195,518 100 100.0 3,728

Note: Total household sample: 151; total family members: 589 persons.

Table 3-13 Expenditures and Their Structure of All Sampling Families in 2009

Expenditure Total Amount Proportion Average per Capita

CNY % CNY

Family operation Subtotal 486,110 22.7 825.3

Agriculture 371,338 630.5

Purchasing fixed assets 51,367 2.4 87.2

Tax 4,454 0.2 7.6

Living consumption

Subtotal 1,558,214 72.8 2,645.5

Food 737,907 1,252.8

Clothes 91,078 154.6

Housing 312,247 530.1

Leisure 136,668 232.0

Property 38 0.0 0.1

Transferred out 39,971 1.9 67.9

Total 2,140,154 100 3,633.5

Note: Total household sample: 151; total family members: 589 persons.

3.4 IMPACT ON ETHNIC MINORITIES AND GENDER

55. According to the census information supplied by the Tianshui Statistics Bureau, there were 33 nationalities by May 2009 in the city. Excluding Han, there were 32 minorities with a total population of 255,000, accounting for 7.1% of the total population of Tianshui. Among this population, 27,000 were living separately which accounted for 11% of the population of the minorities. However, no ethnic minority persons were found during the survey; therefore, no impacts on ethnic minorities exist in the affected area.

56. According to the sampling survey, 48% of the APs were female. Generally, the educational level of women in the affected regions was relatively low. The education level of most rural women was below junior high school, and illiterate and semi-illiterate women had a higher proportion. According to the sampling survey, 11% of women were semi-illiterate; 20% only accepted education in primary school; 18% studied in junior high school; 20% graduated from senior high school or secondary technical school; 2.5% accepted college education or higher education. As for the employment status, over 55% of women did housework at home, and only 24.3% of women did a seasonal part-time job.


36

57. As for the impact on relocation, the residents will obtain better dwelling conditions. For the women bearing most of labor services of the families, the improvement of dwelling conditions and environment may reduce their labor burden and impact of unfavorable environment. Additionally, the improvement of dwelling conditions is also an opportunity for women who bear most of housework in family. In the social survey for the impact on gender, the males and females were both concerned about the problem of fairly compensation and timely compensation, especially the necessary help of rebuilding their houses. Compared with the males, the females showed more concern about the employment, education of the children, subsidies and the separation of the children and their relatives.

58. As this Project is an urban development project, the affected people don’t have to emigrant, so the concerns of women in general do not exist or can be resolved. The different views of different genders are presented in Table 3-14.

Table 3-14 Gender Analysis

Items Male Female

Addressed Major No-major Major No-major

Justice of compensation yes yes

Timely compensation yes yes

Start a new transaction yes yes

Reset for the cultivation of the land

yes yes

Loss of income yes yes

Future employment yes yes

Children's education yes yes

Subsidies during the reset period

yes yes

Separation of children and relatives

yes yes

59. During the resettlement survey, we find that five vulnerable families had disabled persons or members suffering from serious diseases for a long time. Their monthly income per capita was relatively lower. Their main incomes were from the temporary work and government subsidies. 70% of their expenditures were for foods, 20% for medical care and 10% for other consumptions. In the resettlement process these vulnerable groups need to be given special help.

3.5 IMPACT on Non Residential Units

60. In addition to the affected houses, there are 4,638.51 square meters of non-residential structures to be demolished. All of them were constructed collectively by affected villages and leased to small business owners. The size of the affected small business owners is relatively small, with a bad condition. Surveys of the affected enterprises are presented in Table 3-15. The building demolition will affect a total of 12 business owners with 53 employees.

61. For the demolished houses, some of them were operated as small shops by changing from residential uses to commercial uses. According to Table 3-16, they include 20 shops with 70 employees involved with 836.7 square meters.


37

Table 3-15 Surveys on the Affected Small Enterprises or Businesses

Name of Project

District Town Village Name Household Worker

Construction Area Note Production Comments

HH persons m2

Chengji Road

Qinzhou Yuquan

Zaoyuan Zhanglijun’s Kennel

1 2 140.95 Temporary building, renting Zhanglijun’s Kennel

Subtotal(a) 1 2 140.95

Yanjiahe

Well room 1 1 25.11

Village community constructed

Primary school 1 243.2

Village community constructed

Xianhaiping 1 6 980.66 Temporary building, renting

Steel factory

Subtotal(b) 3 7 1248.97 Subtotal(a+b) 4 9 1389.92

Chiyu Road

Xishili Office occupancy 1 2 174 Traffic police rented before, non-occupation now

Fengle Corporation

Office occupancy 1 8 866.47


Office occupancy 1 9 213.96


Office occupancy 1 12 500

Troops 1 0 755.96

Subtotal 5 31 2510.39

Shuangqiao South/North Road

Qinzhou Yuquan

State-owned Land


1 10 420.2 Waste recycling station

Shimaping Tianshui Weiguang Corporation on SOL

1 3 244

State-owned Land Public Toilet

1 0 74

Subtotal 3 13 738.2 Total 12 53 4638.51


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Table 3-16 Affected Stores or Shops

Name of Project

District Name Store or Shop Household Worker

Construction Area Note Production Comments

HH persons m2


Qinzhou


Shops 10 40 416.7 Dwellings changed into shops

Operating general merchandise

Tianshui Yitong Materials Recycling Corporation on SOL

Shops 10 30 420

Total 20 70 836.7


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IV. Legal and Policy FRAMEWORK

4.1 GENERAL

62. The preparation and implementation of resettlement for this Project follow the laws and regulations promulgated by the People’s Republic of China (PRC) and Gansu Province, and also meet the requirements of ADB’s relevant policies. The adopted unit rates of compensation standards and rehabilitation measures in the RP will also follow them during resettlement implementation. After detailed survey and measures, the RP will be updated in terms of full census, final asset inventory and valuation, and final budget, and be submitted to ADB for review prior to award of civil works contracts.

4.2 POLICY BASIS

4.2.1 Relevant Laws and Provisions Enacted by the Central Government

The Law of Land Administration of the PRC implemented in January 1999, and the revision implemented on Aug. 28, 2004;

The Rural Land Contracting Law of the PRC implemented since March 1, 2003;

Law of the PRC on Urban Real Estate Administration taking effect on January 1, 1995;

Regulations on the Expropriation of Houses on State-owned Land (19 January, 2011);

Law of the PRC on Urban Real Estate Administration taking effect on January 1, 1995;

Decisions on Deepening the Reform and Intensifying Land Administration issued by the State Council on October 21;

Circular of the State Council on Intensifying the Land Control issued on August 31, 2006;

Real Right Law of the PRC taking effect on October 1, 2007; and

Provisions of the PRC on the Disclosure of Government Information taking effect on May 1, 2008.

4.2.2 Regulations and Policies Enacted by the People’s Government of Gansu Province

Implementation Measures for the Land Administration Law of PRC in Gansu Province promulgated on September 2, 1999, revised and effective since March 30, 2002;

Notice on Comprehensive Land Compensation Standards in Different Regions and Unified Annual Product Value Standards for Land Acquisition (Gansu Provincial Government executed on January 1, 2013);

Notice of Delivering the “Operating Procedures of the Minimum Standard of Living Security in Gansu Province” (Gansu Provincial Government Decree 36 of 2009); and

Gansu Province Implementation Details for Cultivated Land Occupation Tax (revised in October 1997).


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4.2.3 ADB’s Policies on Involuntary Resettlement

63. Apart from conforming to relevant policies of the PRC, Gansu Province and Tianshui City, the compilation of the RP and the implementation of resettlement work for the Project will be in accordance with the ADB’s Safeguard Policy Statement (June 2009). The implementation of resettlement will strictly follow the policies, and its approval will be obtained from ADB prior to any change. If any significant changes must be made, the Project Resettlement Office will discuss with the APs, and put forward an updated RP. The RP will be updated based on the detailed design of the Project and socio-economic analysis, and submitted to ADB for approval prior to award of civil works contracts.

ADB’s “Safeguard Policy Statement” June 2009;

ADB’s policies on Indigenous Peoples, Poverty Reduction, and Gender and Development.

4.3 SUMMARY OF MAIN LAWS, REGULATIONS AND POLICIES

4.3.1 Summary of Relevant National and Provincial Laws and Regulations

Provisions on land ownership and land-use right

64. The PRC implements a socialist public ownership, i.e. an ownership by the whole people and ownerships by collectives of land. Land in urban districts shall be owned by the State. Land in the rural areas and suburban areas, except otherwise provided for by the State, shall be collectively owned by peasants including land for building houses, land and hills allowed to be retained by peasants. (Article 2 and 8 of the Law of Land Administration of the PRC)

65. In order to meet the demands of public interests, it is allowed to requisition lands owned collectively, houses owned by entities and individuals or other realties according to the statutory power limit and procedures. When requisitioning land owned collectively, it is required to, in accordance with law and in full amount, pay land compensation fees, placement allowance, compensations for the above-ground fixtures of the lands and seedlings and other fees, arrange for social security fees for the farmers with land acquired, guarantee their livelihood ,and protect their lawful rights and interests. When requisitioning the houses owned by entities and individuals or other realties, it is required to compensate for demolishment and relocation in accordance with law and protect the lawful rights and interests of the owners of the acquired assets. When requisitioning the individuals' residential houses, it is required to guarantee the housing conditions of the owners of the acquired houses. (Article 42 of the Real Right Law of the PRC)

66. The women and men have equal rights to contract rural farmland. The legal rights and interests of women must be protected; any organization or individual cannot alienate or infringe on their rights of contracted management of land. During the period of contract, the contractees shall not take back or adjust the land. (Articles 6, 26 and 27 of the Law of the PRC on Land Contract in Rural Areas)

Provisions on compensation standard of land acquisition

67. For requisitioning land, compensation should be made according to the original purposes of the land acquired. Compensation fees for land acquired include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the requisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be


41

resettled shall be calculated by dividing the amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4~6 times the average annual output value of the three years preceding the acquisition of the cultivated land. But the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the two years prior to the requisition. (Article 47 of the Law of Land Administration of the PRC)

68. The local people’s governments at and above county level shall take effective measures to make sure the living level of farmers whose farmland is acquired won’t be decreased for land acquisition. It is required to, in accordance with law and in full amount, pay land compensation fees, placement allowance, compensations for the above-ground fixtures of the lands and seedlings and other fees. The people’s governments of provinces, autonomous regions, municipalities who provide farmers for land compensation fees and placement allowance according to current laws and regulations but can’t keep their original living standard and can’t afford the social security fee of farmers who lose farmland due to land acquisition shall be approved to increase placement allowance. If the sum of land compensation fees and placement allowance reaches the regulated upper limit but can’t keep the original living standard of farmers whose farmland is acquired, the local governments may use the income from the compensated use of the SOL for compensation. Provinces, autonomous regions and municipalities shall establish and promulgate the uniform compensation standards by annual output value or district-based comprehensive land price. The acquired land of the same level shall be compensated for the same price. The National Key Construction Projects shall take the land acquisition fee in full amount into rough calculation. (Article 12 of Decisions on Deepening the Reform and Intensifying Land Administration by the State Council)

Provisions on resettlement approaches of farmers whose farmland is acquired

69. People’s governments at and above county level shall formulate concrete measures to guarantee the long-term means of living of farmers whose farmland is acquired. For projects with stable earnings, farmers may become a shareholder through legally approved right to use construction land. Within planned urban areas, the local people’s governments shall bring farmers who lose farmland due to land acquisition into the urban employment system and establish a social security system. Outside the planned urban areas, to requisition collectively-owned land, the local governments shall provide necessary farmland for farmers whose farmland is acquired within the local administrative area or arrange corresponding jobs; and make resettlement in host community for farmers without land and basic living conditions. (Article 13 of Decisions on Deepening the Reform and Intensifying Land Administration by the State Council)

70. The farmers whose farmland is acquired may select the following resettlement approaches: (1) Placement on agricultural production. The acquisition of collectively-owned land outside the planned urban area should be made through rural collective mobile land, the land contractors voluntarily returned, added farmland due to land circulation and land development and arrangement, firstly making sure the farmers whose farmland is acquired have necessary farmland to continue agricultural production. (2) Placement on re-employment. Conditions shall be created in an active manner to provide free labor-skill training and arrange jobs for the farmers whose farmland is acquired. Under the same condition, the priority of employment should be given to farmers whose farmland is acquired by requisitioning units. For the acquisition of farmers’ collectively-owned land within the planned urban area, farmers who lose farmland due to land acquisition should be brought into the urban employment system with the social security system established. (3) Placement on shares dividends. For the land with long-term stable earnings at project sites, on a voluntary basis of farmers, after negotiation with requisitioning units, acquired rural collective economic organizations may buy shares by


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compensation allowance or convert the right of use of construction land into shares. By signing contract with rural collective economic organizations, farmers get returns through preference shares. (4) Resettlement in Host Community. The farmers who lose farmland due to land acquisition but can’t be provided with a basic living condition, after taking advices of acquired rural collective economic organizations and farmers, may be arranged by governments in uniform to make resettlement in Host Community. (Article 2 of Guiding Opinions on Improving Land Acquisition Compensation and Resettlement System)

Provisions on transparency of land acquisition information

71. During land acquisition, it is required to protect the farmers’ right of use of collectively-owned land and right to operate contracted land. Before applying for approval of land acquisition, it is required to inform the farmers whose farmland is acquired of the purpose, location, compensation rate and placement approaches of land to be acquired. The investigation result on condition of land to be acquired should be confirmed by acquired rural collective economic organizations and farmers; if necessary, related departments of Ministry of Land and Resources should organize public hearings according to related regulations. Related documents known and confirmed by farmers whose farmland is acquired shall be submitted for approval of land acquisition. It is required to accelerate establishing and improving conciliation and arbitration mechanism on disputes in LAR, to protect legal rights of farmers and land users whose farmland is acquired. Approved land acquisition, if no special condition, should be declared publically. (Article 14 of Decisions on Deepening the Reform and Intensifying Land Administration by the State Council)

72. The people’s governments of provinces, autonomous regions, and municipalities should prepare approaches on distributing land compensation fees inside rural collective economic organizations based on the principle of mainly using land compensation fees for farmers whose farmland is acquired. The acquired rural collective economic organizations should disclose the incomings and outgoings and distribution of land compensation fees to the members of the organizations to receive supervision. The agricultural department, civil administration department, and other departments should enhance the supervision on distribution and use of land compensation fee. (Article 15 of Decisions on Deepening the Reform and Intensifying Land Administration by the State Council)

73. Administrative organs should disclose government information promptly and correctly. In case of finding any false and incomplete information that affects or may affect social stability and disturb the order of social control, administrative organs should issue correct government information within the responsibility range to clarify. (Article 6 of Provisions of the PRC on the Disclosure of Government Information)

74. Administrative organs should be active in disclosing government information in ways easily known by the masses, such as government bulletin, government website, news conference, newspapers, radio, TV, etc. (Article 15 of Provisions of the PRC on the Disclosure of Government Information)

75. Governments at all levels should establish spots for consulting government information, and prepare accessory facilities to provide convenience for citizens, juridical persons and other organizations. Administrative organs may set up public reference rooms, file acquisition spots, information publicity fields, and electronic information screens to disclose government information. Administrative organs should promptly offer disclosed government information to the National Achieves and public libraries. (Article 16 of Provisions of the PRC on the Disclosure of Government Information)

Provisions on house relocation and housing site administration

http://dj.iciba.com/compensation/


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76. The compensation for the acquired houses cannot be less than the market price of houses similar to acquired houses on the date to announce house acquisition. The value of the acquired houses should be determined by qualified real estate evaluation institution according to the way of evaluating acquired houses. If APs have objection to the value of acquired houses, they can apply to the real estate evaluation agency for a review of assessment. If they still disagree with the results of review, they can apply to the real estate price evaluation committee of experts for appraisal. The method of house acquisition evaluation is formulated by the department of Housing and Urban-Rural Development, who should solicit opinions from the public during policy-making process. Relocation compensation may be monetary compensation or exchange of house property right. Relocation households may choose the relocation compensation methods. The amount of money compensation will be determined by the appraisal price of the real estate market according to the location, usage, building area of the relocation house. (Article 19 of Regulations on the Expropriation of Houses on State-owned Land)

4.3.2 Abstracts of related regulations and rules of Tianshui City and Gansu Province

77. Land compensation and resettlement subsidy of cultivated land will follow the provisions of the Land Administration Law (Article 47). The land compensation and resettlement subsidy for other land areas (non-farmland) and attachments as well as green crops will follow the following standard. Land compensation: the compensation for the acquired land areas for township village enterprises, public facilities, and community services should be 2 to 4 times of the annual average output value (AAOV) of the cultivated land for the past three years. The compensation for housing plot should follow 3 to 5 times of the AAOV of the cultivated land in the village. The compensations for waste land and unused land should follow 2 times of the AAOV of the cultivated land in the village. Resettlement Subsidy: The resettlement subsidy for the acquired land areas for township village enterprises, public facilities, community services, and housing plots should be based on the number of persons requiring economic rehabilitation, which will be based on dividing the acquired land areas and per capita land holding in the affected village. For each person who needs economic rehabilitation, the resettlement subsidy will be set at 2 to 3 times of the AAOV. However, such a resettlement subsidy should not exceed 7 times of the AAOV. For acquired waste land and unused land, no resettlement subsidy should be provided. Green Crop Compensation: for average crops the compensation will be based on the average annual productive value. For land areas with no green crops planted, the compensation will be based on the amount of input made. (Implementation Regulation of Land Administration Law for Gansu Province, Article 24)

78. The decree specifies a series of compensation rates for acquired farmland and demolished structures for state sponsored large infrastructure projects. In article 8, it specifies that land compensation and resettlement subsidy for large infrastructure projects will follow the following standards: For villages with per capita land above one mu, the land compensation for each mu of farmland will be based on 6 to 8 times of the AAOV in the past three years, and the resettlement subsidy will be based on 4 to 6 times of the AAOV. For villages with per capita farmland between 0.4 mu and 1 mu, the land compensation for each mu of farmland will be based on 8 to 10 times of the AAOV, and the resettlement subsidy will be based on 6 to 10 times of the AAOV. This provision is not applicable for this Project. For village with per capita farmland below 0.4 mu, the land compensation and resettlement subsidy for each mu of farmland will be set as no more than 25 times of the AAOV. Article 9: the land compensation and resettlement subsidy for other land, green crops, and c other attachments will follow the provision of Implementation Regulation of Land Administration Law for Gansu Province. (Method of Land Acquisition for Large Infrastructure Projects in Gansu)


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79. Expropriation of rural collective land, with the average arable land above 1 mu, the total of land compensation and resettlement subsidies should not be less than 16 times of the AAOV; with the average arable land above 0.5 mu but below 1 mu, the compensation should not be less than 22 times of the AAOV; with the average arable land below 0.5 mu, the compensation should be 30 times of the AAOV. (The Suggestions of Gansu Provincial People’s Government on Deepening Reform and Strengthening Land Management, 48# issue (2005))

80. For counties with average arable land below 1 mu, the cultivated land occupation tax will be based on CNY24/m2 for irrigated land and CNY16/m2 for dry land; for counties with average arable land above 1 mu but below 2 mu, the cultivated land occupation tax will be based on CNY16/m2 for irrigated land and CNY12/m2 for dry land; for counties with average arable land above than 2 mu but below 3 mu, the cultivated land occupation tax will be based on CNY10/m2 for irrigated land and CNY8/m2 for dry land; for counties with average arable land above 3 mus, the cultivated land occupation tax will be based on CNY8/m2 for irrigated land and CNY4/m2 for dry land.

81. For the occupation of developed areas with average suburban arable land below 1 mu, the land occupation tax will rise up with an addition of 30%, and the occupation of basic farmland will result in an addition of 50%. (Gansu Province Implementation Details for Cultivated Land Occupation Tax)

82. Parties to implement building demolition shall compensate owners of the houses and attachments to be demolished. The compensation for building demolition can be implemented in both money and property rights exchange. The amount of monetary compensation is calculated based on the house location, use purpose and construction area, etc, and determined by evaluation of the real estate market. For the property rights exchange, both parties shall calculate the compensation for the houses to be demolished and the price of the houses to be moved into, finalize the difference between the compensation and the house price, and exchange house rights.

83. Demolition of illegal buildings shall have no compensation and relocation. Temporary buildings that their use period is more than the approved time, or the buildings used for more than two years shall have no compensation and relocation. However, the temporary buildings being used within the approved use period shall have compensation. For the buildings that were constructed and then used within one year, the buildings shall be compensated at 50% of their cost; while used for more than one year, the buildings shall be compensated at 30% of their cost.

84. Parties to implement building demolition shall provide a moving subsidy to owners of the houses and attachments to be demolished. The subsidy is calculated as 0.5% of the total house monetary compensation. The subsidy shall cover two times of moving for temporary transition.

85. Parties to implement building demolition shall provide a transition subsidy to owners of the houses and attachments to be demolished if the owners find a place for the transition by themselves. The subsidy is calculated in the number of the family members, 10% of the lowest wage of local staff published by the Gansu Provincial Government for each family member per month. The transition period shall be limited in two years.

86. Parties to implement building demolition shall compensate for non-residence buildings for loss of shut-down, semi-shut-down, or pending business or semi-pending business caused by the building demolition. The loss is calculated in the average monthly profit of the previous year, and the actual shut-down time. In addition, moving and transition subsidies shall be provided.


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4.3.3 ADB’s Relevant Policies on Involuntary Resettlement

87. ADB’s Safeguard Policy Statement (June 2009) provides systematic guiding policies and operation instructions for the resettlement of its loan projects.

88. The objectives and principles of involuntary resettlement by ADB mainly comprises of:

If possible, involuntary resettlement should be avoided.

If resettlement is unavoidable, all feasible options should be explored and the scope of resettlement should be as small as possible.

Involuntary resettlement must be compensated and supported to ensure that the displaced persons have the same economic and social conditions before and after the project.

The APs must be well informed of the relevant resettlement and compensation policies, and discussion with them must be made.

Resettlement and host area’s current social and cultural facilities must be supported and fully used; the displaced persons shall be integrated economically and socially into the new host community.

Some APs have no formal land ownership, but this should not become the obstacle to their deserved compensation. Special attention should be paid to the households mainly composed of women and vulnerable groups, such as aboriginal people and minority people; relevant help should be extended to them to improve their life standard.

Try every means to bring involuntary resettlement into the project and implement it as a part of the project.

Resettlement and compensation cost should be included in the report of project cost and profits.

It is possible to consider including the cost of resettlement and compensation into the loan of project financed by ADB.

89. To follow the above principles and achieve the goal of resettlement policies, the implementation measures designated by ADB include:

Explore all feasible options, and use every measure to minimize or cancel involuntary resettlement.

In the initial phase of social evaluation, determine the number of APs by every possible means, and prepare relevant work plans in project preparation, technical support and feasibility study.

Regard resettlement as a part of all projects, which include department projects, private department projects, jointly funded projects and loan projects for development financial institutions.

During the preparation of the project, the social economic survey and census of the APs should be completed to determine the loss and APs because of land acquisition, and avoid outsiders or speculators to infiltrate inside.

During negotiations, all persons concerned should be included, especially the APs and more especially the under-privileged people.

Make compensation to all losses of every AP according to the replacement costs,


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including those who have no legal land ownership.

When houses must be relocated, a relocating plan must be prepared after negotiation with the APs and host communities, in the aim of restoring the livelihood of the APs.

If the APs will lose income or livelihood, an income restoration program must be established to improve or at least restore their production conditions.

If the APs are vulnerable groups, or the resettlement will cause social tensions, a preparation period must be given to the APs to adapt themselves to the social changes.

Protect the children and guarantee their healthy growth.

4.3.4 Comparison of ADB’s involuntary resettlement policies with the PRC’s LAR policies

90. Generally speaking, there are many similarities between the ADB’s involuntary resettlement policies and the PRC’s LAR policies, which include:

Both of them attach an importance to avoiding or reducing resettlement during the planning and design stage of a project;

Both of them attach an importance to the restoration and improvement of the livelihood of APs;

Both of them attach an importance to the openness and transparency of the resettlement policies;

Both of them attach an importance to the participation and awareness of the public during resettlement;

Both of them require that the formulation and implementation of the resettlement compensation standards must be based on the law and according to the law.

91. However, there are still some differences in some aspects between ADB’s involuntary resettlement policies and the PRC’s LAR policies, which include:

ADB attaches more importance to the planning prior to the implementation of resettlement, and it requires that a feasible RP must be compiled;

The ADB’s resettlement policies require that during resettlement, all losses of all APs must be compensated according to replacement costs, including those people having no legal land ownership. However, the LAR policies of the PRC provide a different compensation policy to unlicensed buildings.

ADB attaches more importance to the special care extended to the vulnerable people during resettlement; and

ADB attaches more importance to monitoring and checking during resettlement.

92. Based on the above analysis, during the preparation for resettlement, this Project takes full account of the relevant policies of ADB and takes the following measures to meet the demands of ADB:

The preparation of the Project must be based on concrete socio-economic survey and physical survey, and the RP must be prepared in details;

Special care must be given to vulnerable people during resettlement implementation;


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Make compensation to illegal buildings constructed before the cut-off time, taking the buildings as temporary buildings;

Establish internal and external monitoring systems for resettlement.

93. With the above measures, the ADB’s resettlement policies and the PRC’s LAR policies will be seamlessly bridged and the smooth implementation of resettlement of the Project will be guaranteed.

4.4 TARGET OF RESETTLEMENT

94. During the resettlement preparation and implementation, the following targets shall be strive for:

Minimizing land acquisition and house demolishment. Minimizing impact on local life and production.

The RP should be compiled based on LAR compensation standards, for the purpose of improving or resuming original local life and production standard.

Production development compensation should be offered to increase working opportunities in the secondary and tertiary industries.

Encouraging APs’ participation in the RP.

4.5 COMPENSATION CONDITIONS

95. Following APs and organizations are entitled to receive the compensation: (i) persons whose houses are to be demolished; (ii) persons indirectly affected; (iii) persons whose lands are to be acquired; and (iv) affected organizations.

96. All people affected by land acquisition and house demolishment are entitled to receive compensation based on their actual losses which happens before the day (deadline) when project design or project survey is finished. Lands cultivated and houses built after the deadline will not be compensated.

4.6 COMPENSATION PRINCIPLES

97. Compensation shall be provided to people or agencies affected due to the Project implementation. The compensation shall be implemented in accordance with following principles:

Based on detailed survey, a negotiation on compensation with the APs should be conducted.

All APs and affected stores, no matter with licensed or not, should be taken into consideration.

In case that the original life standard cannot be resumed, new working opportunities should be offered.

Affected vulnerable groups should be the prior consideration in compensation, movement, and employment.

All APs should be informed about the right, compensation standard, rehabilitation plan and project schedule.

Monitoring and evaluation (M&E) are required to deal with relevant issues.


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Compensation for acquired houses, land and other properties shall be calculated according to full replacement cost. The calculation of full replacement cost will be based on fair market value, transaction cost, accrued interest, transition and restoration cost and other potential reasonable costs. Affected families due to demolition will be given preferential treatment when they buy the relocated houses provided by the government.

The purpose of construction of Chengji Road is to promote urban development in the future. Therefore, the local farmers will lose part of their lands because of the Project at this time but will experience future city expansion and lose more land. ADB’s Safeguard Policy Statement (June 2009) requires the borrowers to evaluate the future impact of involuntary resettlement. Considering that the farmers are likely to lose all lands, a livelihood restoration plan will be designed for them. The TMG promises that similar compensation standards will be adopted when the land of families is acquired in the same village due to future expansion of the city.

All affected shops/enterprises (licensed or not), regardless of forced relocation or not, shall obtain compensation for loss of earnings according to full replacement cost. Their livelihood will also be restored or improved. The compensation and restoration measures will make sure the living standard of vulnerable families shall be improved.

4.7 COMPENSATION STANDARDS

4.7.1 Land Compensation Standards

98. Compensation standards are set up according to relative laws and regulations of the PRC, Gansu Provincial Government, TMG and ADB. Rural collective land acquisition compensation includes land compensation fees, resettlement fees, compensation for ground attachments, young crops fee and taxes.

99. The comprehensive land prices based on different regions will be used for the collectively owned land in the Project areas, and will be as the reference for compensation for state-owned construction and agricultural land. The AAOV will be used for the collectively owned agricultural land, and will be as the reference for state-owned construction and agricultural land. Unused collectively owned land acquired shall be compensated at 2 times of the AAOV. The land of Qinzhou District is divided into four regions, while the land of Maiji District of Tianshui City is divided into 5 regions according to “Notice on Issuing Comprehensive Land Prices Based on Different Regions and Unified Annual Average Output Value Standards” of Gansu Province (Executed on January 1, 2013). The detail compensation standards are shown in Table 4-1.

100. Lands acquired by the Component are located in Qinzhou District and Maiji District. According to land acquisition standards of Tianshui City, the acquisition of collective land for the Component will be implemented at the comprehensive land prices based on different regions issued in November 2009 (The Notice on the Issue of the Comprehensive Land Value of Regions for Land Acquisition Compensation and the Unified Annual Output Value Standard for Land

Acquisition Compensation in Gansu Province by Gansu Provincial People's Government). In accordance with the documents, with the comprehensive land prices (including land compensation, relocation compensation, and crop compensation) of affected villages of the Component are provided in Table 4-1. 60% of the land compensation will be paid to the affected households, while 40% will be used as collective funds for public facility or infrastructure projects in the affected villages. The fund shall be agreed by two thirds of the whole villagers before it is used.


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Table 4-1 Land Acquisition Compensation Standards

District No.

Land Region

Village

Comprehensive Land Price Farmer Village

Collective

CNY/ha. AAOV

2

(CNY/mu)

CNY/mu

Times of AAO

V

CNY/mu CNY/mu

Qinzhou

A Not in project areas

- - - -

B

Yanhe, Wancun, Zaoyuanzhuang, Sunjiaping

1,296,000

2026 86,400 42 51,840 34,560

C Not in project areas

- - - - -

D Yanxin, Xituanzhuang, Xishili

1,101,600

2026 73,440 36 44,064 29,376

Maiji

A Not in project areas

- - - -

B Not in project areas

-- - - -

C

Xiaojiazhuang, Yangpo, Shuiyanzhai, Jinzhuang, Wuzhuang, Xiakou, Dengzhuang

1,144,800

1491 76,320 51 45,792 30,528

D Not in project areas

- - - -

E Not in project areas

- - - -

101. In accordance with ADB IR policy requirements, the proposed standards should be at least equivalent than the replacement cost. Since there is no market value for collective land3 in the PRC, compensation standards for acquisition of collective land are based on the gross annual output value of the land category times a multiple. This policy principle is stipulated in the Land Administration Law, 1999/2004. In 2004, the State Council issued a decree stipulating that the minimum multiple for farmland should be 16 times. This was determined based on nearly 20 years of experience with multiples of 6 and 10 times, which were deemed to be inadequate because many villages had refused to transfer their lands. Furthermore, the net income from farmland is typically 30% to 50% of the gross output value after deducting production costs. This is supported by evidence of low lease rates for idle farmland (i.e., the person with the land use right doesn’t expect much income from the land and can earn much more from off-farm employment). This means the compensation with a multiple of 16 times is equivalent to 32 to 50 years of net income from the land. The proposed multiples for this project range from 72 to 51

2 Notice on Issuing Comprehensive Land Prices Based on Different Regions and Unified Annual Average Output

Value Standards” of Gansu Province (Executed on January 1, 2013)

3 Collective land cannot be directly sold; it must be converted to state-owned construction land. Collective land can

be leased out but these rates are often much less.


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times of AAOV. Even for some farmers who plant grapes, the AAOV is around CNY 4,000, and the compensation multiple is more than 16 times.

102. In addition, according to relevant policies of the State and Tianshui City for land acquisition, the taxations payable for collectively-owned land acquisition are as follows: (i) compensation for new land used for construction; (ii) land exploitation fees; (iii) exploitation expense of new vegetable gardens; (iv) tax on occupation of cultivated land; and (v) management cost of land acquisition. The land acquisition compensation standards are presented in Table 4-2.

Table 4-2 Other Compensation Standards for Land Acquisition

Name Category Unit Standards

Land reclamation fees

Class A farmland CNY/m2 20

Class B farmland CNY/m2 15

Other arable land CNY/m2 2 to 10

Compensation for land used for new construction

Maiji CNY/m2 24

Qinzhou CNY/m2 28

Funds for reclamation expense of new vegetable land

Qinzhou and Maiji CNY/mu 8,000

Tax of occupation of cultivated land

Qinzhou and Maiji CNY/mu 20,800

Non-staple food adjustment fund

Basic land acquisition costs % 2

Administrative cost of land acquisition

Basic land acquisition costs % 2.80

4.7.2 Social Pension Insurance of the Landless Farmers

103. The landless farmers who sign the second round of land contract with village committees and over 16 years of age shall participate in social pension insurance if the acquired land accounts for over 20% of their total contracted land.

104. Farmers whose acquired farmland is more than 80% of their total contracted land are considered as complete land losers. These farmers shall return their remaining contracted land to village committees and become urban residents. They shall be enrolled into the basic pension insurance system as same as urban residents with a unified account established specially for the pension insurance system. They will not receive any extra compensation for the remaining farmland when they return it back to the village collectives. Taking a farmer with 60 year old as example, total CNY43,231 is required for the pension insurance program. The framer shall pay CNY17,292, which is deducted from land compensation, while remaining CNY25,939 shall be paid by local government. Then, the farmer can receive CNY 524 of the pension insurance per month.

105. Farmers whose acquired land is between 20 to 80% of their total contracted land are considered as partial land losers. An entirely personal account shall be established for them, which will be combined with the rural pension insurance system.


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106. Farmers whose acquired land is less than 20% of their total contracted land will not be taken into the pension system temporarily. When they are involved in land acquisition in future, the total amount of lost land can be accumulatively calculated.

107. Village committees are responsible for reporting to the town government on the amount of land, number of people involved, and etc., and posting the relevant information within the scope of village. The time of publicity should not be less than 7 days.

108. The cost of the landless farmers’ pension is paid by the individuals and the government, taking an approach of a lump sum paid in the land acquisition process, for which individuals pay 40%, subtracting from the land compensation fees and resettlement fees, and the government takes 60%. For state key construction sites, the government’s part comes from the income of selling the land. The expenditure shall be taken into land acquisition costs.

109. In accordance with the payment standard for loss of all farmland and part of farmland, the social insurance agency in counties and districts will determine the amount of pension insurance that the affected villagers should pay. The government financial department will set up special pension fund accounts for the affected villagers and conduct special management. The financial department will leave in advance from the submitted earnings of land leasing the pension insurance fees that individuals should pay, and transfer the individual payment of the affected villagers to the special financial accounts. The financial special management agencies will be responsible for the issue of receipt voucher for the individual payment to the financial agencies and social insurance agencies. The governments departments will undertake part of the data provided by the financial agency in terms of the social insurance agencies, take the responsibility of raising funds to pay into the special financial accounts, and provide relevant vouchers to the social insurance agencies.

110. For the industrial land / other land, the part paid by government comes from the income of selling the land. The other part is paid by the institute who acquires the land. The expenditure shall be taken into land acquisition costs.

111. The land acquired through administrative allocation is paid by the institute who acquires the land. The expenditure shall be taken into land acquisition costs.

112. For completely landless farmers, the minimum payment standards are derived by multiplying 20% of the base amount, i.e. 60% of the average staff wage for the previous year, with 15 years. The individual contributions part is credited to an account, while the government part is credited to the social pooling fund. For men over 60 years old or women over 55 years old when starting to participate in the insurance, for each additional 1 year of age, individuals pay less one fifteenth of the total. Men over 75 years old and women over 70 years old need not to pay the individual part.

Example: Farmer A, male. His land was acquired in May 2009. The proportion of land

acquisition reached to 85%. In 2008, the average wage of the employment staff of the

whole province was CNY 24,017 annually. Farmer A shall pay the following amount in

order to participate in social insurance:

Total amount = CNY 24,017 x 60% x 20% x 15 = CNY 43,231

Individual payment = CNY 43231 x 40% = CNY 17,292

Government subsidy = CNY 43231 x 60%= CNY 25,939

If Farmer A is 70 years old, the individual payment should be CNY 17292 x 5/15 = CNY 5,764. And then he can receive CNY502 of the pension insurance per month.


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113. The calculation how much pension can be received per month is complicated. It is related to the amount of the pension in the special pension account of individuals.

114. For partial landless farmers, the minimum standard will take the annual per capita income of peasants as the base. For lost land accounting for 20~30% of contract land, the APs should pay three times the standard fee. For land acquired accounting for 30~40% of existing contract land, they should pay 4 times the standard fee. For land acquired accounting for 40~50% of the existing contract land, they should pay 5 times the standard fee. For land acquired accounting for 50~~60% of the existing contract land, they should pay 6 times the standard fee. For land acquired accounting for 60~70% of the existing contract land, they should pay 7 times the standard fee. For land acquired accounting for 70~80% of the existing contract land, they should pay 8 times the standard fee. All individual contributions and government grants will be credited to individual accounts. If they are over 60 years old when participating in the insurance, for each additional 1 year of age, individuals pay less one fifteenth of the total. If they are over 75 years old, they do not need to pay.

115. The interest of personal account will be calculated according to the one-year CNY deposit rates announced by the People's Bank.

116. After completely landless farmers pay the required fees following this approach, they will be enrolled into the basic pension insurance system. If men are over 60 years and women over 55 years, the social basic pension insurance institutions will pay a monthly basic pension in accordance with the system for urban residents. The calculation how much pension can be received per month is complicated. It is related to the amount of the pension in the special pension account of individuals.

117. After partial landless farmers pay the required fees following this approach, they will be enrolled into the new rural social insurance system. If farmers are over 60 years of age, they are qualified to receive the pension. The social insurance agencies will pay a monthly basic pension according to the accumulative balance of their personal account. If his/her person account has a total balance of CNY 50,000, and his/her number of months to be offered with pensions is 139 according to Table 4-3, he/she can receive monthly pension of CNY 360.

118. Pension plan more or less reflects the replacement cost principle. The number of months that personal pension is calculated is shown in Table 4-3.

Table 4-3 Number of Months to Be Offered with Pensions

Age Number of Months with Pensions Provided

55 170

56 164

57 158

58 152

59 145

60 139

61 132

62 125

63 117


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Age Number of Months with Pensions Provided

64 109

65 101

66 93

67 84

68 75

69 65

70 56

4.7.3 Compensation Standards for Temporarily Occupied Land

119. During the construction of the Component, some lands for construction materials stacking sites of the Component will be used temporarily. After consultation, the compensation to the temporary farmland is at the rate of CNY 4000 per mu for two years. The annual production value of Yuanquan town, Qingzhou district is CNY16170/hectare (CNY1078/mu). The annual production value of Maopaoquan and Huaniu town is CNY8101.5/hectare (CNY540.1/mu).

4.7.4 Compensation on House Demolition

(1) Urban houses compensation

120. According to the evaluation object and local real estate market conditions, certified real estate appraisers should do applicability analysis of market method, income method, cost method, hypothetical development method and choose one or more methods to assess the value of acquired houses.

Market method should be chosen if there are transactions of real estate similar to the acquired houses. Income method should be chosen if acquired houses or similar real estate have incomes. Hypothetical development method should be chosen if acquired houses are under construction.

If two or more methods can be chosen, they can be used at the same time. Also, the results of each method should be compared and analyzed in order to decide reasonable evaluation result.

The relocation of residential houses of farmers refers to the urban residential house demolition resettlement compensation standards.

121. The compensation for the relocated residents is arranged in two ways: Monetary compensation and property rights exchange.

Monetary compensation:

The monetary compensation is based on market evaluation price issued by a qualified real estate evaluation agency. According to the current practice, the estimated compensation rates for demolished resident buildings in different areas of Tianshui are: Tianshuijun area: CNY 3,500 per square meter (Chiyu Road), Wulipu area: CNY 4,000 per square meter (Chengji Road), Shuangqiao Xi River Bridge area: CNY 4,000 per square meter.

The housing prices of economically affordable houses are CNY 2,600 per square meter in Tianshui (Anminjiayuan Community). Therefore, the aforementioned price of a relocation house at least can afford an economically affordable house with the same area.


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The surveys showed that all the APs are willing to have their old houses demolished, and buy new houses in the real estate market of Tianshui City after getting compensation.

Property rights exchange:

For those who will be resettled in other areas rather than original areas, the property rights exchange can be used. The difference in property values should be calculated and paid by both parties according to the differences between the compensation for resettlement housing price and the market price for exchange settlement. When the construction area of the new house is more than the demolished house, in principle, the excess area shall not be more than 20%.

The relocatees adopting the property right exchange option will be paid a subsidy for temporary transition and relocation by the party causing the relocation. During the transition period, relocates or house renters will be paid the transition subsidy based on registered number of family members if they arrange their transition by themselves, and the moving subsidy for two times shall be provided. If the party provides transition housing, the transition subsidy will not be provided to relocates. The standard is CNY360 per household per month. This is the new standard to be executed. APs accept the new standard because the house compensation is evaluated.

122. Compensation and resettlement measures for the demolition of state-owned housing and self-management institutional housing are as follows.

For demolition of state-owned buildings, the party who requires the demolition shall compensate to the party whose buildings are demolished in case the latter has terminated lease agreements with tenants, or the latter will be responsible for the tenants’ relocation.

Where relocatees (owners of houses to be demolished) and tenants of the houses fail to reach an agreement on termination of their lease agreements, a property rights exchange method should be implemented. The affected owners of the houses will get new houses with their demolished houses. The owners should rent their new houses to the original tenants, re-sign a lease agreement with the tenants.

If the relocatees (owners of houses to be demolished) and tenants of the houses fail to reach an agreement on termination of their lease agreements, and the property rights exchange resettlement is not possible, a monetary settlement will be implemented. The party to demolish the houses will compensate the relocatees and the tenants, respectively, according to the following principle: 40% of the house value based on house market assessment to the relocatees, 60% of the house value to the tenants.

123. Demolition of self-managed public houses or buildings or structures such as well, toilets, etc, the party who requires the demolition shall compensate the relocatees. The compensation for housing attachments is shown in Table 4-4.

Table 4-4 Compensation Standards for Attachments (for Budgeting)

Types Unit Standards

Wells CNY/piece 840

Toilets CNY/m2 100

Steel sheds CNY/m2 20

124. The removal, installation costs incurred to the house's communications, cable television and other facilities caused by house demolition shall be compensated based on the actual demolition unit costs.


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125. Housing compensation standards applied to the Project for the demolition of various facilities are provided in Table 4-5.

Table 4-5 Compensation Standards for Indoor Facilities (for Budgeting)

Names of Facilities Unit Standard

Cable TV network transfer CNY/HH 50

Wide band network CNY/HH 8

(2) Rural residential housing

126. The compensation standards for replacement housing in rural areas based on replacement costs are presented in Table 4-6. Houses with the same structure may have different values based on house market assessment due to age and quality of the houses. The house values are divided into three groups simply in order to implement the house replacement easily.

Table 4-6 Compensation Standards

Structure Class A (CNY/m2) Class B (CNY/m

2) Class C (CNY/m

2)

Brick-concrete 1,500 1,400 1,300

Brick-wood 1,100 1,000 900

Brick-earth-wood 800 700 600

Earth-wood 360 300 240

(3) Administrative units

127. For buildings of administrative units, monetary compensation will be provided at the standard of CNY 1,500-3,000 per square meter, where frame structure: CNY 3,000 per square meter, brick-concrete structure: CNY 1,500 per square meter, and other structures: CNY 1,000 per square meter.

(4) Enterprises (including shops)

128. For buildings of state-owned enterprises, monetary compensation will be provided according to the land level and the appropriate benchmark price and the compensation standard is CNY 1,500-3,000 per square meter, where frame structure: CNY 3,000 per square meter, brick-concrete structure: CNY 1,500 per square meter, other structures: CNY 1,000 per square meter.

(5) Restructured state-owned enterprises

129. The restructured state-owned enterprises are compensated at prices of the land and building evaluation when the restructure was approved by the Leading Group of City Enterprise Restructure.

(6) Village collective-owned buildings

130. The compensation for village self-built buildings for industrial, commercial and office space is shown in Table 4-7.

Table 4-7 Compensation Standards


2) Class C (CNY/m

2)

Brick-concrete 1,500 1,400 1,300

Brick-wood 1,100 1,000 900


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2) Class C (CNY/m

2)

Brick-earth-wood 800 700 600

Earth-wood 360 300 240

(7) Other buildings

131. For buildings whose use purpose has been changed with no administrative agencies’ permission, the compensation will be calculated at the rate to compensate for their original use stated in the property right certificate.

4.7.5 Moving and Transition Cost

132. The party to implement the demolition will pay for a moving subsidy that is calculated at 0.5% of the total monetary compensation to owners of the houses to be demolished.

133. The relocatees will receive a transition allowance from the party that demolishes the houses. During the transition period, the party to implement the demolition will pay the relocatees or tenants the subsidy of CNY 120 per month. If the family members are less than three, the subsidy will be calculated based on three persons, which is CNY 360 per household per month.

134. The transition period is 8~10 months.

4.7.6 Compensation for Business Operation

135. According to the survey and regulations of the TMG, for the shutdown, semi-shutdown, pending operation, semi-pending operation of the non-residential buildings caused by the demolition, the compensation shall be provided once at CNY 1,500~6,000 per small enterprise or business based on the length of the shutdown and pending period. As mentioned, all affected enterprises are small business and they will have enough time to find new places to operate their business before their building demolition.

136. Compensation for stores or shops that are operated in part of residential houses consists of three aspects: (i) in accordance with the compensation standards for the compensation of the demolished houses; and (ii) CNY 800~1,200 per small enterprise or business for production or operation suspension in once; and (iii) providing moving compensation to the operators. In practical implementation, new places for restarting the business operation are decided before the house demolition so their business is not affected much. The same principle as above is applied, and the compensation standard is in range of CNY500 to 1,000 based on the loss assessment.

4.7.7 Compensation for Temporal Housing

137. The compensation policy of the temporal houses is CNY 200~300 per square meter. The temporal houses are those built by villagers not used for living but for storage purposes without any approval by local administration institutions, and attached to their main houses. According to ADB’s safeguard policy, the structures will be compensated based on their replacement costs. According to the house assessment agencies and local practice, CNY 200 to 300 CNY per square meter is sufficient to cover the replacement cost of such temporary structures.


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4.8 Chiyu Road House Demolition Policy (May 23, 2012)

4.8.1 Policy Basis

Advice of Tianshui People’s Government on Accelerating Urban Village Reconstruction

Implementation Opinions of Qinzhou District Urban Village Reconstruction

Announcement of Tianshui People’s Government’s Decision on Housing Requisition in the Area of Chiyu Road Expanding Project

Notice of the Compensation Standards for Land Acquisition and Resettlement of Chiyu Road Expanding Construction

4.8.2 Demolition Area

138. Demolition covers an area of four villages (Tianshui, Yanxin, Xituanzhuang, Xishili) which is along Chiyu Road and above-ground buildings, housing plots and green crops in the area will be also demolished. The details should accord with the area of construction land decided by the planning department.

139. The municipal facilities in the demolition area, such as Radios, TVs, communication, water-supply, heat-supply and sanitation, will be decided whether to be demolished or not after the consultation of the institute who acquires the land and the management departments.

4.8.3 The Principles of Land Acquisition and Demolition

Collectively-owned land should be acquired in accordance with laws and land acquisition should be compensated according to laws.

Adhere to the fairness and justice, and guarantee the clients lawful rights and interests.

Land acquisition should adhere to be reasonable and legitimate and be done in strict accordance with the relevant procedures. Additionally, rewards can be given to the clients who positively cooperate with the demolition.

4.8.4 The Standards of Land Acquisition and Demolition

The standards should be consulted on the basis of land compensation standards.

The standards should be determined on the basis of the comprehensive land price based on regions.

The standards should be determined on the basis of compensation standards of legal real estate including above-ground buildings and other facilities.


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140. Once legal real estate, above-ground buildings and other facilities are assessed by the professional evaluation agencies, they should be compensated according to the assessment results.

（i） Evaluation agency determination. In the form of questionnaire survey, at least one evaluation agency should be determined after taking advice of more than two-thirds affected households. Assessment cost will be paid by the institute who acquires the land.

（ii） Evaluation implementation. As the main body of evaluation, evaluation agency will carry out evaluation work at the help of towns (street offices) and villages (communities). The detailed compensation standards are as follows:

(1) For the legal buildings which are approved by the government or have the land-use right certificate and house ownership certificate, the first and second floors should be compensated on the basis of evaluation price, while the floors above the second should be compensated on the basis of the objective price in the year when built.

(2) Houses, which were built before the end of 1989, don’t have the relevant certificate but are clear in ownership, are treated as the historical property and compensated in accordance with the legitimated construction above.

(3) Before the approval deadline, temporary buildings should be compensated as makeshift houses.

(4) Shop affirmation should meet one condition below: (1) Land transferring procedures have been gone through and the use of land is commercial. (2) The shop has legal ownership certificate which explicitly shows the use of it is shop. (3) Contract of sale definitely shows the house is bought in the price of shop. The houses affirmed as shops should be compensated on the basis of shop compensation standards.

(5) For the eaves of a veranda totally enclosed, the vertical projection area is entirely counted to construction area. For the eaves of a veranda that are not enclosed, half of vertical projection area is counted to construction area. For the floating staircase, half of its vertical projection area is counted to construction area. Indoor staircase is not counted to construction area.

(6) Evaluation agencies are not responsible for the validity of real estate, which is in the charge of state-land department, legal department and urban construction department, etc. And the levels of town and village will assist in the evaluation of validity of real estate.

（iii） Determination of illegal real estate (including above-ground buildings and other facilities) compensation standards. For the real estate, above-ground buildings and other facilities assessed to be illegal by the relevant departments, the compensation standards are determined after the discussion between project management office and village committees.

（iv） Compensation for other facilities.

(1) Every household can be compensated CNY100 for each cable TV, telephone and Internet.

(2) Every resettled person can be compensated CNY300 for relocation.

4.8.5 The Standards of Resettlement

141. The way of combining monetary compensation and exchange of house property right (housing relocation) is adopted.

142. In one of the situations below, monetary compensation is used:

（i） APs voluntarily give up housing relocation and choose monetary compensation.


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（ii） House is identified to be illegal.

143. Housing relocation standards

（i） Standard relocation area of every demolished household is the biggest area of relocation houses which can be bought by using the evaluating compensation of its real estate, above-ground buildings and other facilities and reward fund.

Total evaluating compensation= Total assessed value of real estate + Compensation of above-ground buildings and other facilities Standard relocation area= (Total evaluating compensation + Reward fund)/ The price of relocation houses If the standard relocation area of demolished household doesn’t exceed 35 square meters per capita, this household can be compensated according to the standard of 35 square meters per capita. Relocated personnel verification is mainly on the basis of residence book and details are determined after the discussion between project management office and village committees.

（ii） The source of relocation houses comes from the economically affordable houses in Shanshui New Town, Shanshui Garden, JIngxiu Garden, Fuxi Road community. The average price of houses in Fuxi Road community is CNY5,000 per square meter, while the average price of houses in other sites is CNY2,800 per square meter. If the APs resettle in Fuxi Road community, every household can only choose one apartment. The household divided into several households after the notice of land acquisition and resettlement is issued will be treated as one household.

（iii） Resettlement ways

The way of providing relocation houses is adopted. In principle, the affected households are allotted the houses with the area calculated in the ways above, but in practice, they can choose the practical housing area from the source of relocation houses. The price of the portion of area that doesn’t exceed the standard relocation area is calculated on the basis of price of relocation houses.

The portion of area that exceeds the standard relocation area is divided into three levels and their prices are as follows: (1)1-10 square meters (10 square meters included), the price arise 10% on the basis of placement price; (2) 10-20 square meters (20 square meters included), the price arise 20% on the basis of placement price; (3) 20-30 square meters (30 square meters included), the price arise 30% on the basis of placement price; (4) The portion of area that exceeds the standard placement area cannot exceed 30 square meters.

If the owners of illegal real estate need resettlement, they will be resettled after the discussion between project management office and village committees. Placement area is determined according to the ways above and the price arise 30% on the basis of the placement price.

Resettlement work adheres to the principle of first being demolished and first choosing placement houses.

If APs choose to relocate in under-building apartments and rent houses for self-transition temporarily, each of them can get 12-month transition fees at a time on the basis of CNY120 per month since they move out. If APs choose to relocate in complete apartments but cannot live at once, they can get 3-month transition fees at a time on the basis of CNY120 per month. The following households cannot get transition fees: (a) voluntary transition households assigned by the government; (b)


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households that severally have multiple housing lands are not demolished entirely; (c) households giving up house relocation and choosing monetary compensation at a time.

For small shops, monetary compensation is adopted in principle and compensation is on the basis of evaluation price. Exchange of house property right is also adopted and details refer to “Housing relocation standards (i)”.

Standard exchange (relocation) area = (evaluation price of shop + reward fund) / the price of relocation house

External monitoring and evaluation has been done for land acquisition and resettlement of Chiyu road. The results show that APs’ rights are ensured and most of them are satisfied.

4.9 Maiji New Town Resettlement Plan

144. For the villagers who have legal housing site land, monetary compensation will be given after house demolition. Monetary compensation is evaluated by the certificated persons.

145. For the villagers who have legal housing site land, the village will provide a house of 30 square meters for each person. If the household has three persons, they can get a house of 90 square meters. If the household has more than 5 persons, it can apply for the second house which is sold according to cost price.

146. The standard for attachment on the housing site land is as follows: CNY3,000 for each normal gate; CNY1,000 for each simple gate.

147. The people affected by demolition can get transition compensation. The compensation standard during the transition period is CNY120 per month per capita. If the household has less than 3 persons, each household can get CNY360 per month.

148. The first three households who demolish the houses since the demolition notice is issued can get a reward of CNY20,000 and the fourth to tenth households who demolish the houses since the demolition notice is issued can get a reward of CNY10,000.

4.10 Restoration of Infrastructure and Ground Attachments

149. The village infrastructure affected during construction, such as irrigation and drainage channels will be minimized as far as possible and restored by the contractors as early as possible so as not to affect local people’s living and production. If there are any crop damages or loses, they will be compensated by the contractor. The construction design will be checked to ensure there are no long term impacts on village infrastructure.


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4.11 Entitlement Matrix

Type of Losses

Level of Impact

Entitled Persons

Resettlement and Compensation Policy

Compensation Standards

SOL 77.38 mus of SOL will be acquired

Users (troop land, Shimaping Office, Xiguan Office)

(1) Land for administrative and unit will be acquired without compensation. (2) The compensation for SOL will be set according to relevant land level and function. (3) The reformed state-owned enterprises will be compensated according to the land appraisal value and the above-ground building value approved and affirmed by reforming leadership team. Please be specific.

Providing compensation according to relevant policies. The SOL is vacant land, while compensation standard for the troop’s land will be decided by consultation of both parties.

Collectively- owned land

1,029.17 mus of collectively-owned land will be acquired, involving 1,109 HHs, 5,265 persons.

Villagers Land contractors

(1) There is no land adjustment in all affected villages.

(2) The compensation for the acquired land is set according to land acquisition compensation standards.

(3) 60% of the compensation is provided to affected households, while 40% of that is remained in village collectives as village development fund.

(4) Collective economic organizations use the fund to develop public utilities. The use of the fund shall be agreed by two third of all villagers.

(5) The compensation for above-ground attachments belongs to its owner. (6) Affected villagers shall participate into social insurance and pension system. Both affected villagers and local government shall pay for the social insurance.

(1) The compensation for the acquired collectively-owned land is implemented according to the comprehensive price of land. The cultivated land in Qinzhou District is CNY 73,440 ~86,400 per mu. Land contractors get the land for CNY44,064 ~51,840 per mu, and the rest land is used for the public project. The cultivated land in Maiji District is CNY 76,320 per mu. Land contractors get the land for CNY 45,792 per mu, and the rest land is used for the public project. The village should get two-thirds of villagers’ agreement if it uses the compensation for land acquisition. (2) For the participated social insurance and pension system, the minimum standard sets annual payment per capita income of peasants as a base. 3 times of the standard fee should be paid if the acquired land accounts for 20 to 30% of contract land. 4 times of the standard fee should be paid if the acquired land accounts for 30 to 40% of contract land. 5 times of the standard fee should be paid if the acquired land accounts for the 40 to 50% of contract land. 6 times of the standard fee should be paid if the acquired land accounts for the 50% to 60% of land. 7 times of the standard fee should be paid if the acquired land accounts for the 60 to 70% of contract land. 8 times of the standard fee should be paid if the acquired land accounts for the 70 to 80% of contract land. All individual contributions and government grants credited to individual accounts. If they are over 60 years old when they participated in the insurance, for each additional 1 year of age, individuals pay less one fifteenth of the total. If they are over 75 years old, they do not need to pay. Deposit interests of individual account are computed according to the CNY one-year deposit interest rate announced by People’s Bank of the PRC.


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Type of Losses

Level of Impact

Entitled Persons



Temporary land

Temporary land of 140 mus

The monetary compensation will be given according to the actual useful year during the project construction.

The compensation standard：CNY 4,000 per mu for two years will be given to cultivated land contractors.

Rural residential houses

The total area of rural residential houses to be demolished adds up to 6,358.84 square meters, involving 36 HHs with 179 persons.

The demolished rural residents

The monetary compensation will be given to the housing owners including housing site land. The relocation will be conducted before house demolition. Village committees are responsible for selection of new housing site land and provide it to affected villagers freely. The housing tenants get the relevant rights on the basis of the renting contract.

The standards for housing replacement cost are as follows: CNY 1,500-1,300 per square meter for brick-concrete structure; CNY900-1,100 per square meter for brick-wood structure; CNY 600-800 per square meter for brick-earth-wood structure; CNY 400 per square meter for earth-wood structure. (Evaluation is done when it is executed.) The definite housing compensation is determined on the basis of individual assessment done by the professional assessment agency according to assessment criteria. The removers pay the relocation HHs and housing tenants the compensation for relocation which accounts for 0.5% of total housing monetary compensation. The incentive prize is provided according to detailed regulation. The standard of housing site land for building houses in villages is 130 m

2 / household.

Rural houses

The total area of rural residential houses to be demolished adds up to 34,276.7 square meters, involving 114 HHs with 513 persons.

Collective relocation without new housing site lands.

(1) The relocated house area is determined as 180 m

2

(construction area) standard for a household with 4 persons (including that less than 4 persons) who has housing land. For households with more than 4 persons, an additional 25 m

2

of house area will be increased as one person is added. (2) The demolished household whose house area is within the standard area will be relocated according to the standard area if they select housing relocation. If they select monetary relocation, the compensation will be paid at the house cost. (3) If the house area of the demolished households is less than the relocation standard area, the households can be relocated with the relocation standard area. If is the demolished households select housing relocation, they shall pay for the area difference in construction cost of demolished houses. If they select monetary compensation, they shall be compensated the area difference in two times of

(1) The standard relocation area is 180 m2/HH（4

persons or less than 4). If the relocated household has more than 4 persons, a relocation area of 25 m

2 per person will be added. Property rights

exchange can be selected for areas within the standard relocation area. Monetary compensation can also be selected. (2) The standards for housing replacement cost is as follows: CNY 1,300-1,500 per square meter for brick-concrete structure; CNY900-1,100 per square meter for brick-wood structure; CNY 600-800 per square meter for brick-earth-wood structure; CNY 240-360 per square meter for earth-wood structure. (3) If the house area of the demolished household is less than the relocation standard, the household can be compensated according to the relocation standard. But the excess part needs to be paid at the construction cost. If monetary compensation is selected, the excess area should be compensated at two times of the construction cost. (4) If the area of the demolished house is more than the resettlement area, the household can be relocated according to the resettlement standard. Monetary compensation will be provided for the excess part at the cost price. Transition subsidy: CNY 360 per business monthly, 8-10 months.

The removers pay the relocation HHs and housing


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Type of Losses

Level of Impact

Entitled Persons



construction cost of the demolished houses. (4) For the house area of the demolished households is more than the relocation standard area, the demolished households will be relocated according to the relocation standard area. The excess area more than the standard area shall be compensated according to the construction cost of the corresponding structure of the demolished house in the year of the demolition. (5) The auxiliary structures shall be compensated by the assessment price. (6) If the demolished households select housing relocation and self transition, transition subsidies shall be provided according to relevant demolition policies. The moving subsidy shall be provided at one time to the demolished households who move by themselves.

tenants the compensation for relocation which accounts for 0.5% of total housing monetary compensation.

Urban residential houses

The total area of urban residential houses to be demolished adds up to 3,696 square meters, involving 48 HHs with 221 persons.

Urban residents

The monetary compensation for the demolished houses is determined according to the market evaluated price issued by the professional assessment agency which has the qualification of assessing real estate. The relocated households who adopt the property right exchange shall be paid a subsidy for temporary placement by the party causing the relocation. The relocation subsidy will be provided twice. Subsidy for two times of moving shall be provided.

The definite housing compensation is determined on the basis of individual assessment done by the professional assessment agency according to assessment criteria. Based on current practice, the estimated compensations are 3,500 CNY/m

2 in Tianshuijun

(Chiyu Road),4,000 CNY/m2 in Wulipu (Chengji

Road & Flood Control), and 4,000 CNY/m2 in

Shuangqiao area. At the same time, the housing prices of economically affordable houses are 2,600 CNY/m

2 in Tianshui (Anminjiayuan

Community). Transition subsidy is CNY360 per household monthly, 8-10 months. The removers pay the relocation HHs and housing tenants the compensation for moving which accounts for 0.5% of total housing monetary compensation. The incentive prize is provided according to detailed regulation.

Vulnerable groups

Vulnerable groups are 22 HHs and 28 persons. 17 HHS are affected by land acquisition and 7 HHS

Vulnerable HHs

(1) Helps on relocation will be given to vulnerable HHs through village committees. (2) Village committees take the responsibility of offering transitional houses to vulnerable HHs if transitional period exists. (3) Vulnerable HHs have a

Setting up a fund of CNY 30,000 to help the vulnerable groups. Every relocated HH that lives below the MLGL will get a living subsidy of CNY 1,000; every relocated HH who is disabled will get CNY 1,500; every relocated HH who not only lives below the MLGL but also has a disabled member will get CNY 2,000. The subsidy will be delivered after the following procedures: individual application, then community verification, and


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Type of Losses

Level of Impact

Entitled Persons



are affected by both land acquisition and house demolition. All of HHs are rural inhabitants.

priority to choose the relocation houses, such as type, area, location and so on. (4) Vulnerable HHs have a priority to rent the facade that can be used for commercial purpose in resettlement area. (5) Local government will support them to plant fruit trees like apple.

finally project department’s affirmation.

Self-employed HHs

The total area of the 12 demolished self-employed HHs is 4,638 square meters, affecting the employment of 53 persons.

Institutions and enterprises; Self-employed HHs; Property owners; Tenants.

(1) Administrative institutions are compensated in cash. (2) The state-owned allocation land used by institutions and enterprises are compensated according to basic prices related to land classes and functions. (3) The reformed state-owned enterprises are compensated according to the assessment prices of land and above-ground buildings approved by reforming leading group. (4) The industrial, commercial and official houses are compensated according to replacement price. (5) The relocated people are compensated according to the house compensation standard; (6) Individual proprietors are compensated for losses from production suspension and cessation of business; (7) Property owners will be provided with relocation and transition fees.

(1) The monetary compensation of administrative institutions is as follows: CNY3,000 per square meter for frame structures; CNY 1,500 per square meter for brick-concrete structures; CNY 1,000 per square meter for other structures. (2) The standards for housing replacement cost is as follows: CNY 1,500-3,000 per square meter for brick-concrete structure; CNY900-1,100 per square meter for brick-wood structure; CNY 400 per square meter for brick-earth-wood structure; CNY 360 per square meter for earth-wood structure. (Evaluation is done when it is executed.) (3) The compensation is given in Table 4-6. (4) The compensation for temporary buildings is CNY 200~300 per square meter. (5) The compensation for production and operation suspension is CNY 1,500~6,000 per business. (6) (1) (2) (3) are given to property owners and (4) (5) are given to tenants. (7) Replacement of affected HHs shall be conducted before the demolition. Therefore, the wages of workers will not be affected.

Shops

The demolition affected 20 shops, 836.7 square meters and 70 employees. .

Property owners; Tenants

(1) The demolished houses shall be compensated according to the housing compensation standards. (2) The housing owners shall be compensated for their operation stop on the basis of business area. (3) Proprietors get the compensation for moving and transition. (4) The housing tenants get the compensation for losses from production suspension and cease of business.

The standards for housing replacement cost is as follows: CNY 1,300-1,500 per square meter for brick-concrete structure; CNY900-1,100 per square meter for brick-wood structure; CNY 600-800 per square meter for brick-earth-wood structure; CNY 240-360 per square meter for earth-wood structure. (Evaluation is done when it is executed.) The compensation for production and operation suspension is CNY800~1,200 per business. Transition cost: CNY 360 per business monthly, 8-10 months. The removers pay the relocation HHs and housing tenants the compensation for relocation which accounts for 0.5% of the total housing monetary compensation. The incentive prize is provided according to detailed regulation.


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Type of Losses

Level of Impact

Entitled Persons



Temporal buildings

930.45 square meters of temporal buildings need to be demolished.

The main house owners

The temporal buildings shall be compensated according to their replacement cost.

The compensation is CNY 200~300 per square meter of construction area. Temporary buildings of Chiyu road are assessed. The details are shown in 4.8.5.

Attachments

198 electric meters, 198 water meters, 198 fixed telephones, 15 sets of air conditioners, 28 lines of broadband network, 205 accounts of cable televisions, 105 electric poles, and 4 transformers

Property institutions or individuals

The compensation is determined on the basis of the replacement price.

CNY 70 for every electric meter or water meter, CNY 50 for every account of cable television, CNY 8 for every HH of broadband, CNY 108 for every fixed telephone, CNY 200 for every air conditioner.

Gansu Tianshui Urban Infrastructure Development Project District Heating Component

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V. PUBLIC PARTICIPATION AND CONSULTATION

150. In order to make the resettlement work of the Project base on a feasible and reliable foundation, ensure the lawful rights and interests of displaced persons and relocated enterprises and reduce dissatisfaction and dispute, the Project attaches great importance to the participation and consultation of displaced persons. The RP has been prepared on the basis of full consultation with affected population and information disclosure. Therefore, in the decision process of the planning, design and implementation of the Project, TUCIC and Tianshui Xiqin Demolition Company (TXDC) together with all the consultant institutions took the opportunities of socioeconomic surveys and social effect evaluation to propagandize the background information of the Project in various ways, made consultations with all kinds of APs and negotiated about the common concerns. The public participation and consultation provide a basis for the improvement of the RP.

5.1 PUBLIC PARTICIPATION AND CONSULTATION ACTIVITIES PERFORMED

151. As to all significant topics for discussion involved in the planning stage of resettlement, TUCIC has organized design organizations, consultant organizations, local ROs and affected population to disclose information and conduct public consultation in various ways. Main disclosure and consultation activities so far are shown in Table 5-1.

Table 5-1 Main Activities of Resettlement Information Disclosure and Consultation

No. Time Content of

Disclosure and Consultation

Participant No. of

Participant Organizer

1 2010.3-2012.12

Compensation and Resettlement, Negotiation the contract

TUCIC, the People’s Government of Maiji District, the People’s Government of Yuquan Town, Affected households

450 The People’s Government of Qinzhou District

2 2010.3-2012.12

Physical survey and policy publicity

TUCIC, households affected by Shuangqiao subproject

60 TUCIC

During the period of signing the contract of land acquisition and house demolition, the person in charge went to APs homes and listened to their suggestions as well as women’s suggestions. Women put forward that the site for building new houses should be near the original one and hoped that compensation standard can be higher.

152. In October 2009, the ADB delegation evaluated the content of the project. From November 2009 to May 2010, according to the result of evaluation, the TXDC carried out a relatively large-scale questionnaire about opinion and advice of public participation for affected areas. It selected a family member above 15 years old from 203 affected households on whom the questionnaire survey was conducted. The summarized results of the survey are shown in Table 5-2.


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Table 5-2 Summary of Public Opinions and Advices

Number Questions Answers %

1 Do you know “Tianshui Urban Development Project”?

Know 24

Know a little 45

Don’t know 31

2 Do you agree with this project?

Yes 65

No 6

Don’t care 11

No idea 18

3 Do you think this project will offer more job opportunities for local communities?

Yes 72

No 8

No idea 20

4 Do you think this project will improve the quality of water, air, people’s health of the local area?

Yes 75

No 9

No idea 16

5 Do you think this project will improve the environment of the local area?

Yes 81

No 5

No idea 14

6 Do you think this project will boost the economy of the local area?

Yes 75

No 12

No idea 13

7 Do you think this project will boost the tourist industry of the local area?

Yes 65

No 16

No idea 19

8 Do you think this project will boost the housing price of local area?

Yes 70

No 20

No idea 10

9 Do you think this project will improve investment environment of local area?

Yes 70

No 12

No idea 18

10 Do you think this project will benefit the impoverished people?

Yes 60

No 20

No idea 20

11 Do you think this project will benefit the women?

Yes 81

No 8

No idea 11

12 How do you think this project will influence your family life? Better 70

Worse 4


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Number Questions Answers %

Same 12

No idea 14

13 Generally speaking, do you think you will benefit from this project?

Benefit 63

Damage 8

No idea 29

14 Do you know the Land Resource Administration Law of 1998?

Know 20

Know a little 25

No idea 55

15 Do you know document no. 28: Decisions on Deepening the Reform and Intensifying Land Administration issued by the State Council on Oct. 2004?

Know 8

Know a little 12

No idea 80

153. According to the analysis of the above statistical data, the following conclusions can be drawn from it:

The respondents have positive opinions on the project and they also have high expectation on this project. Such as, 65% agree to the project, 72% think of the potential of more job opportunities, 81% agree that the local environment will be improved, 75% agree that the local economy will be boosted, 65% think that the project will boost the tourist industry of the region, 70% think the project will improve the investment environment of the local area, 81% think that the women will benefit from it, and 70% think that their family life will be better because of the project.

The above data also shows that the APs know little about relevant information and policies of the project. Only 20% know the Land Resource Administration Law, and the No. 28 document issued by the State Council in 2004 is known to only 8% respondents.

154. According to the above situations, the project office and other relevant organizations will introduce the project to the APs by handing out resettlement manuals, declaring resettlement policies, holding village representative meetings and so on, emphasis will be paid to resettlement policies and specific measures of Tianshui City.

5.2 FEEDBACK ON PUBLIC PARTICIPATION AND CONSULTATION

155. From November 2009 to April 2010, the TXDC and SEM carried out socioeconomic surveys for affected population, generalized and summarized the opinions and advices put forward by them, timely fed back to engineering design organizations, and fully considered and absorbed these opinions and advices when formulating the RP. Feedback on public participation and negotiation up to now is shown in Table 5-3.


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Table 5-3 Feedback on Public Participation and Consultation

Item Problems Reasons and Results Measures for Improvement

Land requisition and relocation

The Chengji Road project will demolish some houses.

It makes residents lose original houses, affecting their daily life.

Try to avoid or reduce the compact districts of houses passed through in the design of the project. Project design should try to implement on the current base, reduce scale of land acquisition and house relocation

Most of residents, particularly for peasants, haven’t received relevant information of the project through formal channels, especially for definite LAR time.

Relocated HHs and tenants will be affected and might be able to arrange their own living timely.

Determine the affected scope as soon as possible and inform affected population of them timely. So relocated HHs can build new houses timely and tenants can arrange their living in advance. At the same time, it is advised that relevant information of the project should be widely spread to give affected population profound understanding and sufficient knowledge in popular ways, such as broadcast, television, local drama, song, regular meeting, etc.

Compensation funds

The masses are concerned about the compensation and allocation of the funds.

The compensation and allocation of the funds are related to living support of relocated HHs.

The resettlement divisions should disseminate relevant compensation rate before the construction and make the masses well-informed.

Allocation mode of compensation funds.

Some residents worry that compensation funds won’t be allocated fully or will be held back.

It is advised that strict institutional and financial disclosure should be implemented, such as disclosure of compensation rate, measurement size, evaluation grade, etc. After the determination of compensation funds, they should be posted for disclosure and subject to the participation and supervision of affected population. Compensation funds are directly allocated to the peasants in the form of bankbooks.

Public facilities and environment

The construction of the Project will cause damage to infrastructure to different extents.

The project construction will cause damage to original power and communication facilities (e.g. wire stands, transformers and communication transmission towers) to some extent. And water supply facilities and access roads of some residents and enterprises are also involved, which exerts negative influence to production and residents’ living.

Try to reduce damages to existing public facilities; maintain damaged public facilities or change their courses in the process of construction to avoid unnecessary conflicts. Try to repair and rebuild damaged public facilities as well as power and communication facilities.

Noise pollution

Because traffic on roads causes a lot of noise, normal work and rest of the residents living near to roads will be affected.

Construct green belts at both sides of the road during the project construction; in special road section, sound-insulated wall may be set to reduce noise.

Auxiliary facilities

Some auxiliary facilities are to be established.

Traffic facilities for crossing the road. It is advised to build pedestrian bridges or underground passages in places where there are schools or the population is dense.

Mass participation

Let displaced persons take part in each cycle of the project.

Let displaced persons share project benefits and promote the enthusiasm of local governments at all levels and the masses.

To hand out resettlement manuals and establish channels for complaints and feedback, for instance, hot line for complaints and suggestion boxes. To set up a consultative


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Item Problems Reasons and Results Measures for Improvement

system. To hold as many as possible consultation meetings participated by project office, street offices, and representatives of villagers’ committees and displaced persons.

5.3 CONSULTATION PLAN WITH AFFECTED POPULATION

156. With the continual advance of the preparation and construction of the Component, TUCIC shall carry out further negotiation activities. Main contents of negotiation include:

Concrete opinions of affected population on final engineering design.

Before the construction, TUCIC shall inform the affected population along the lines of the design information and the specific effects of the project. At the beginning of the construction, TUCIC will implement exploratory survey along the lines and determine the concrete positions and sizes and so on of structures. For places with which the masses aren’t very satisfied, TUCIC will organize the design department again to revise the design on the premise that engineering standards are met.

Arrangement of compensation for relocated households and payment procedures

Measures of enterprises and institutions for avoiding being affected and recovering.

How to rehabilitate electricity and water supply functions affected during the construction period

Other problems concerned by displaced persons.

157. See Table 5-4 for time arrangement for further consultation meetings of ROs at all levels and displaced persons. According to work arrangement of the Resettlement Division, district and street offices, villages (communities) will hold consultation meetings and report relevant situations to the Resettlement Division. Besides participating in the consultation activities organized by the Resettlement Division, monitoring departments also should hold meetings on other monitoring problems and collect the complaints and suggestions of affected people, and then provide monitoring information to land acquisition departments at all levels.

Table 5-4 Time arrangement for consultative meetings with displaced persons

Content Time Attendees

Rehabilitation of electricity and water supply

The whole period of project implementation

TUCIC, Affected villages, independent monitoring institution and representatives of AP

Problems occurred during the project implementation


Resettle offices at all levels and independent monitoring institutions, Affected villages and representatives of APs

Collection of suggestions and complaints


Monitoring departments, Tianshui Urban construction Investment Co., Ltd


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5.4 METHODS OF CONSULTATION OF AFFECTED POPULATION DURING PROJECT IMPLEMENTATION

5.4.1 Direct Meeting

Displaced persons meeting

Meetings with representatives of displaced persons or village cadres should be held to collect their key problems and ideas for which the opinions from local government and RO should be obtained.

Enterprises and institutions consultative meeting

For relocation site, compensation ratio, etc. concerning enterprises and institutions, consensus should be reached with their legal persons or representatives through negotiations.

Consultation meeting on district-level land acquisition

Consultation meeting on LAR should be organized jointly by subcomponent ROs and held separately. Organize displaced persons to visit the resettlement location and auxiliary facilities for the convenience of their selections. And collect their opinions to improve the RP. After the meeting, relevant personnel should visit displaced persons and the latter should sign Resettlement Compensation Agreement through full negotiation.

5.4.2 Indirect Consultation

158. Displaced persons may reflect their complaints, ideas and suggestions to village (community) committee and resettlement and monitoring departments at all levels. The ROs should feedback relevant handling ideas.

5.5 INFORMATION DISCLOSURE

159. In order to let all affected population understand in time and thoroughly the resettlement policy and implementation of the project so that resettlement can be carried out openly, fairly and transparently, resettlement agencies at all levels will adopt the following measures:

Before May 31, 2013, the resettlement policy and standard should be published in Tianshui Newspaper or other media;

Each affected village/community should disclose its situation of affected population, compensation rates, resettlement measures, and complaint and appeal channels, and so on in the presence of cadres of village/community, or in other public places;

Before May 31, 2013, the RP for this Component should be available at the public libraries or other public places of affected areas, to which all displaced population may refer at any moment;

Provide one Resettlement Information Booklet for each household affected.

160. The following will be listed in detail in the Resettlement Information Booklet: the situations of various affected families, proper compensation policy and compensation


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rates, project progress, procedures for solving dissatisfactions and complaints of displaced persons. The booklet will be issued to AP after the RP is approved by the TMG and ADB, and its pattern is as shown in APPENDIX I. The RP will be posted on ADB Website in compliance with the ADB’s Safeguard Policy Statement (June 2009) after approved by the TMG, and reviewed by ADB.

161. The various types of compensation standards listed in this RP, which are based on the profound investigations, the laws and regulations of Gansu Province and PRC and the ADB’s Safeguard Policy Statement (June 2009), aiming at rehabilitate and improve the AP life in the short term, are developed after the consultation of the affected enterprises and institutions, local inhabitants and local government. These standards take the full consideration of the various implementing construction projects and the operability of the future construction process.


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VI. IMPLEMENTATION PLAN FOR RESETTLEMENT AND REHABILITATION

6.1 OBJECTIVES AND PRINCIPLES

6.1.1 Objectives of resettlement and rehabilitation

162. In accordance with the policies on involuntary resettlement of ADB and the requirements of relevant national laws and regulations, the overall objective of the resettlement of the Project is to rehabilitate as soon as possible and improve as much as possible the living conditions and production of affected population and enterprises and public institutions. The concrete objectives are as follows:

Affected households will obtain compensation calculated by replacement cost, and the area, structure and living environment of their reconstructed houses may reach and exceed the levels prior to relocation;

All kinds of attachments to the ground affected are compensated by replacement cost;

Public buildings and special facilities are compensated by replacement cost and may be rehabilitated to their original status;

After reconstruction of enterprises, their production scale and capability as well as employment of employees will not be affected. No labor force in affected enterprises will lose their jobs permanently;

Public facilities and environment of affected communities will be rehabilitated to their original status and even improved;

Labor force whose land is acquired will be properly allocated, and their incomes will be guaranteed and increased by improving production conditions. No peasants will lose their jobs permanently due to land acquisition.

6.1.2 Principles of Resettlement and Rehabilitation

163. Following principles shall be adopted during the resettlement and rehabilitation implementation.

Affected population will participate in the whole process of resettlement.

For issues including compensation rates of houses and facilities, selection of sites of resettlement, schedule of relocation, schedule of rehabilitation, fund disbursement, and measures for rehabilitation of production and operation, affected population or their representatives must be involved and consulted with to reach an agreement. Symposia of representatives and consultation meetings of affected residents or affected villagers will be held.

All compensation will be completely and directly given to the APs.

Set up special account for compensation fund to keep any unit, individual or villagers’ committee (community) (including every district, township and street) from retaining compensation fund.


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Compensation for houses, special facilities and attachments to the ground will be calculated by replacement cost.

The amount of compensation shall not be retained, depreciated or levied taxes. The compensation obtained by property owners must be calculated by the publicized rates. All the property of originally built structures shall belong to property owners, any unit or individual has no right to claim them. The residual value of surplus material left after relocation or the depreciation of original property shall not be deducted from compensation.

Help and care will be offered to vulnerable groups.

Vulnerable families should be given priority in selection of resettlement housing, offer of information on resettlement housing, supply of low-rent housing, and purchase price of affordable housing; and in employment opportunities created in the process of project implementation, distribution of service networks at resettlement sites, etc.

Compensation for acquired houses, land and other properties shall be calculated according to full replacement cost. The calculation of full replacement cost will be based on fair market value, transaction cost, accrued interest, transition and restoration cost and other potential reasonable costs. Affected families due to demolition will be given preferential treatment when they buy the relocated houses provided by the government.

The purpose of construction of Chengji Road is to promote urban development in the future. Therefore, the local farmers will lose part of their lands because of the Project at this time but will experience future city expansion and lose more land. ADB’s Safeguard Policy Statement (June 2009) requires the borrowers to evaluate the future impact of involuntary resettlement. Considering that the farmers are likely to lose all lands, a livelihood restoration plan will be designed for them. The TMG promises that similar compensation standards will be adopted when the land of families is acquired in the same village due to future expansion of the city.

All affected shops/enterprises (licensed or not), regardless of forced relocation or not, shall obtain compensation for loss of earnings according to full replacement cost. Their livelihood will also be restored or improved. The compensation and restoration measures will make sure the living standard of vulnerable families shall be improved.

6.2 THE RELOCATEES’ WILLINGNESS OF RESETTLEMENT

164. From February to March, 2012, the Tianshui City Investment Company conducted the investigation widely and deeply among the relocatees, realized their willingness of resettlement, and formulated resettlement policy and measures according to their suggestions and requirements. See Table 6-1 for the preferred relocation choices of the 198 relocated households after socio-economic questionnaire survey to 203 households.

165. The relocatees in rural areas wish to rebuild houses on housing sites provided by the government. 42 of the relocatees in urban areas choose to purchase houses by monetary compensation, while 6 of them choose to buy economically affordable houses. Because Chiyu road and Maiji new town are in city planning area, there is no condition for building houses dispersedly. APs agree to buy new houses in real estate market after publicity. Affected households of Chengji road can build houses on housing sites that are provided by village committee. APs agree with the change of the way.


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Table 6-1 Relocatees’ Will of Resettlement

Ways of resettlement Rural Areas Urban Areas Subtotal

Purchasing new houses after monetary compensation 114 42 156

Rebuilding houses on housing sites 36 0 36

Purchasing economically affordable houses 0 6 6

Renting cheap houses 0 0 0

Collectively Build New Relocation Houses 0 0 0

Monetary compensation 0 0 0

Others 0 0 0

Total 150 48 198

6.3 THE RESETTLEMENT OF URBAN RESIDENTS

6.3.1 The Plan of the Resettlement of Urban Residents

166. Urban residents can buy the satisfied houses at their willingness after monetary compensation thanks to the mature market of real estate in Tianshui.

167. Urban residents can also buy economically affordable houses if they have difficulties in buying new houses in real estate market.

6.3.2 Economically Affordable Houses

168. Low-income and middle-income families in cities and towns, is the households that have no housing or housing hardship: (a) households with the Permanent Account of the cities and towns (including retired staff in army who accord with local resettlement standards retired staff); (b) yearly income of the household is below CNY32,000; and (c) families whose per capita housing floor space is below 16 square meters.

169. Development of economically affordable housing should be consistent with the overall urban planning and listed in national economic development plans.

170. Economically affordable housing implements the principles of total amount control and regional control in order to achieve a rational layout and complete infrastructure and coordinate with urban development.

171. The plan and design of economically affordable housing should comply with the following principles: appropriate standards, complete functions economically applied and convenient.

172. Economically affordable housing built by the government is formulated into residential areas in principle and the planning and construction infrastructure outside should be synchronized.


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173. Economically affordable houses should be mainly medium and small unit .The area of medium unit is below 90 square meters and the area of small unit is below 70 square meters. According to building location and the actual situation of housing demand, when conditions are ripe, they can appropriate some of the larger size apartment building, bigger units of economically affordable houses can be built after the conditions are mature. The land of economically affordable houses is supplied by administrative allocation of land.

174. The fees that laws and regulations regulate and are approved by the price and financial departments should be paid by construction unit, and should be included into the price of economically affordable housing. Administrative charges involving the construction of economically affordable housing are halved except the provisions of free. Operational charges, belonging to government guidance price, are calculated by the lower limit of charging standard. The taxes are reduced in construction and trading of economically affordable housing according to relevant laws, regulations and rules.

175. Families that purchase economically affordable houses, according to People's Bank of China "Individual Housing Loans Management Approach", provide the certification of grant and apply for housing loans to commercial banks.

176. The families who purchase economically affordable houses may give priority to be distributed housing funds.

177. Purchase of economically affordable houses subject to the system of application, approval and public announcement.

178. Buyers who have purchase cards may purchase economically affordable houses. In principle, the purchasing area cannot exceed the approved area. If the purchasing area is within the approved area, the purchasing price is calculated according to the approved price; if the purchasing area exceeds the approved area, the purchasing price is calculated according to the market price.

179. The money exceeding the price of economically affordable houses should be paid by the construction unit to finances at the same level and stored in special account used for expenditure on housing security.

180. Base price for economically affordable houses involves three parts: development cost, tax and profit. Construction unit should calculate the cost of economically affordable houses before they are sold, and write to the price department for sale price application attached with relevant information. The price of economically affordable houses that are rented should be determined by the price department at the same level and the department in charge of economically affordable houses, taking comprehensive consideration of construction cost, management cost and less than 3% of profit.

181. Economically affordable housing price is announced by the price department through the media to the public after it is confirmed. Sales price shall not exceed the announced base price and floating rate. Any fees in the name of security deposit should not be charged.

182. Economically affordable housing price approved by price departments is base price of housing at the same period of project development. The price of single housing units is calculated on the basis of the base price and taken floor and orientation into account. Among the 52 households surveyed, 14 households intended to purchase economically


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affordable housing, while the rest of them selected to purchase commercial residential building.

6.3.3 The Plan of the Resettlement of Urban Residents

183. Most of the affected urban residential houses are originally buildings constructed by the unit for employees and their families. During the housing reform in the 1990s, all houses of the unit were changed to be owned by individuals. The Project only affected the residential houses, but did not affect the work of the residents.

184. The monetary compensation for the demolished houses of urban residents is determined according to the market evaluated price issued by the professional assessment agency which has the qualification of assessing real estate. According to the current practice, the estimated compensation rates for affected residential structures are 3,500 CNY/m2 in Tianshuijun (Chiyu Road), 4,000 CNY/m2 in Wulipu (Chengji Road & Flood Control), and 4,000 CNY/m2 in Shuangqiao area.

185. The housing prices of economically affordable houses are 2,600 CNY/m2 in Tianshui (Anminjiayuan). Therefore, the aforementioned price of a relocation house at least can afford an economically affordable house of the same area. The surveys showed that all the APs are willing to have their old houses demolished and buy new houses in the real estate market of Tianshui City after getting compensation.

186. Property rights exchange: By adopting the relocation in other places, the price difference incurred by property rights exchange will be settled by both parties according to the evaluated compensation price of the demolished houses and the market selling price of the new houses. The excess part of the new houses in principle should not be higher than 20% of the original area of the demolished houses.

187. After adopting this compensation method, all affected residents can obtain housing. Table 6-2 shows the plan of the resettlement of urban residents.


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Table 6-2 Plan of the Resettlement of Urban Residents

Name of Project

District Village/

enterprise

Household Population Area of housing Ways of

Resettlement Selective Houses

HH person m2


State-owned Land

Tianshui Yitong Materials Recycling Corporation on SOL

48 221 3696

Buying new houses in Tianshui real estate market, monetary compensation, economically difficult families, resettlement of buying economically affordable houses.

Adopting the way of monetary compensation and housing right transformation. The house source: Shanshuixincheng, Shanshuijiayuan, Jinxiuyuan, Fuxilu district. Subtotal 48 221 3696

Total 48 221 3696


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6.4 THE RESETTLEMENT OF RURAL HOUSEHOLDS

6.4.1 Independent relocation by Chengji Road villagers

188. The size of demolition of housing caused by road construction is not big. In the survey, they expressed the willingness of rebuilding houses independently. The affected households would like to rebuild their houses with compensation received on the new housing plots arranged by affected villages. The area of new housing plot is about 0.25 mu per household. The demolished houses and acquired housing land will be compensated at replacement cost. The old materials shall belong to the individuals. New houses should be built prior to the demolition of old houses. There are lands used for house building in all the affected villages.

189. During the implementation period, if some affected families need to buy houses in the city, they can buy commercial residential buildings in the real estate market of Tianshui by themselves after their houses are compensated according to the replacement price.

190. The APs determine to reconstruct their houses in the same village or buy commercial residential buildings in Tianshui by themselves.

6.4.2 Resettlement Plan of Chiyu Road villagers

191. All villages passed by Chiyu Road are within the urban planning area of Qinzhou District in Tianshui City. The local farmers do not take agriculture as their major source of income, and agricultural income only takes up a small proportion. So all these affected farmers are willing to move to the buildings and live in the city. The resettlement of rural residents adopts the method in combination with construction of “villages in urban”.

192. Taking homestead household as a unit, the rural residents along Chiyu Road shall be relocated by housing and monetary compensation. The house construction will adopt the method of unified planning, unified design, unified construction, and unified resettlement standard area. The details are shown in chapter 4.8.

193. Rural relocation plan is shown in Table 6-3.


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Table 6-3 Plan of Resettlement of the affected rural residents

Name of Project

District Town Village Household Population

Housing area Resettlement

ways HH person m

2

Chengji Road

Qinzhou Yuquan Zaoyuan

1 5 225 Self-constructed

Yanhe 34 168 5883.84 Self-constructed

Maiji Huaniu Shuiyangzhai 1 6 250 Self-constructed

Subtotal 36 179 6358.84

Chiyu Road

Qinzhou Yuquan

Xituanzhuang 7 32 1949

Shanshuixincheng, Shanshuijiayuan, Jinxiuyua, Fuxi Road District

Yanxin 35 189 11938.69


Xishili 7 34 1949


Tianshuijun 10 43 1140

Shanshuixincheng, Shanshuijiayuan, Jinxiuyuan, Fuxi Road District

Subtotal 59 298 16976.69

Maiji New Town

Maiji Mapao

Huwang 25 98 8000 Huwang District

Mapaoquan 30 117 9300 Huwang District

Subtotal 55 215 17300

Total 150 692 40635.53

Shanshuixincheng started to be constructed in 2011 and will be completed at the end of 2013. Shanshuijiayuan started to be constructed in 2008 and some houses have been completed. 10 affected households have moved in. Jinxiuyuan started to be constructed in 2012 and will be completed at the end of 2014. 3 buildings have been constructed and 1 building is under construction in Fuxi road district. The site for construction is in urban area of Tianshui city and the facilities are well-equipped. The distance for relocation is within 5km.

Huwang community is in planning and will complete construction at the end of 2014. The site for construction is in Maiji New Town and the supporting facilities are well-equipped. The distance for relocation is within 2km.


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There are supporting schools around each community.

6.5 REHABILITATION OF THE LIVING CONDITIONS OF FARMERS AFFECTED BY LAND ACQUISITION

6.5.1 The Overall Plan

194. Resettlement plan fully reflects the participatory approaches and concepts. Resettlement policies are as follows: to respect the wishes of the affected people and to maintain their existing production and living traditions. According to the survey and consultation with local affected people, the affected staff is provided with the monetary compensation which can be used to improve existing agricultural conditions, such as expansion of irrigation systems, or invest in other sidelines or non-agricultural production activities.

195. Because the project is in the planning district of Tianshui City, it is necessary for all villagers in the planning district to come to the city to do non-farming work in the process of urbanization. Many working chances are provided during the development of economy of Tianshui city. The survey shows that all APs have found non-farming work. For example, Tianshui commercial trade city is built in project district of Tianshui city, which consists of four functional districts:(1)the exhibition center, (2)the commercial trade district, (3)the warehouse and logistic and (4)the goods development and village in the city transforming region. Tianshui commercial trade city combines an exhibition center and a big commercial trade, which includes meeting and exhibition, goods exchange, sales exhibition, business offices, hotels, logistics and entertainment. Those ways of developing economy provide a lot of working chances. For the affected households who need or want to get a job in Tianshui commercial trade city, training will be provided so that they can acquire basic skills. Most of APs agree with this scheme. Also, APs have started to do non-farming work before project implementation and receive stable incomes.

196. The resettlement and restoration principals, which are formulated from the policy as follows:

(i) The resettlement planning is based on physical indicators of land acquisition and demolition and the compensation for land acquisition and subsidy criteria.

(ii) Resettlement, combined with regional development, resource development, economic development and environmental protection, reflects the sustainability of the development of local economy and the affected farmers. Taking into account the local natural and socio-economic conditions, practical RP should be formulated to restore and develop production, and create basic conditions for long-term sustainable development.

(iii) Resettlement plan should be formulated in accordance with the "benefit production and facilitate life" principle,.

(iv) Considerate fully and broadly, handle the relationship of the state, collectives, and individuals correctly.

(v) Immigrants gradually meet or exceed the original standard of living by way of making full use of local natural resources, building irrigation facilities, reclaiming land, improving land quality and strengthening agricultural strength.


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197. According to immigrants’ advices and suggestions, combined with the actual situation of the affected areas, the basic recovery plan is determined as follows:

(i) Immigrants are resettled in the village group so that they can keep the original way of life and production as well as social relationship, recover and improve their production and income levels after land acquisition, and enhance the initiative and adaptation in living and production.

(ii) The households affected by land acquisition can get land compensation and resettlement fees.

6.5.2 The RP for APs’ production

198. In the project impact survey and resettlement planning process, by using participatory methods of work, the resettlement planning group held meetings with the leaders of town and village involved and consulted with representatives on proposed compensation policies and rehabilitation measures.

199. Impact of land acquisition varies from village to village. Therefore, the rehabilitation plan should be based on the degree of impact, the availability of remaining land resources and the will of the affected staff. In general, due to nature of proposed road project, the land acquisition impact is limited for most affected people. For such impact, generous land compensation fees and resettlement subsidy will be distributed directly to affected farmers, which will enable them increase income levels according to their different family characteristics.

200. In process of land acquisition, the land administration department distributed the request for proposals, which regulated the standards of land compensation and resettlement fees, and held resettlement compensation hearings. Tianshui City Investment Company handled land acquisition procedures under the regulations. After the land acquisition application was approved, Tianshui City Land Resources Bureau handled the land acquisition procedures. Tianshui City Land Resources Bureau will sign the land acquisition agreement with affected villages after it is approved and publicized by affected villages. The affected villages shall distribute 60% of the compensation based on the comprehensive land price directly to affected land contractors, while the rest 40% will be left in the village groups to develop production in village groups. The part of the land compensation left for village collectives will be used for production restoration of the whole villages, and need to obtain the agreement of two third of all villagers before using this fund.

201. Specialized agriculture techniques shall be developed at the same time as traditional agriculture processes to increase output per unit of land. At the same time, export of labor service shall be actively developed to obtain employment in nonfarm or non-land based industries and agricultural processing industry or small businesses, as well as income from leasing redundant houses in the villages. It is believed that after the construction of the “villages in the city”, village collectives shall be transformed into industrial and trade enterprises, which will further increase income and employment in nonfarm sectors.

202. For the proposed Project, since most affected village groups divided the contract land into 6-10 pieces and allocated evenly to village members, the land acquisition will not acquire all the contract land for any affected households. As indicated in Table 6-4,


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the land acquisition for the Project will acquire a total of 958.052 mu of farmland, affecting a total of 1,109 households from 8 villages.


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Table 6-4 Land Loss Impact in the Affected Villages

Name of

Project District Town Village

Total Household

Affected Household

Percentage Total

cultivated land

Acquired cultivated

land Percentage

HH HH Mu Mu

Chengji Road

Qinzhou

Yuquan

Zaoyuanzhuan 300 0 0.00% 1600 0 0.00%

Yanhe 214 108 50.47% 900 115.14 12.79%

Sunjiaping 360 120 33.33% 1500 133.718 8.91%

Subtotal 874 228 26.09% 4000 248.858 6.22%

Maiji

Huaniu

Xiaojiazhuang 199 127 63.82% 1160 85.1 7.34%

Dengzhuang 216 96 44.44% 990 107.43 10.85%

Yangpo 214 206 96.26% 1457 183.85 12.62%

Shuiyanzhai 385 0 0.00% 1830 0 0.00%

Jinzhuang 315 104 33.02% 1450 91.309 6.30%

Wuzhuang 342 220 64.33% 1616 131.5 8.14%

Xiakou 367 128 34.88% 1598 110.005 6.88%

Subtotal 2038 881 43.23% 10101 709.194 7.02%

Total 2912 1109 38.08% 14101 958.052 6.79%


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203. For such limited impacts, generous compensations will be provided. According to relevant national and local regulations, a set of comprehensive compensation rates will be applied for the acquired land areas regardless types of acquired land areas, which ranges from CNY76,320 to CNY86,400 per mu. Among them, 60% or CNY44,064 or CNY51,840 per mu will be paid directly to affected households and 40% will be kept at affected village groups to be used for improving farming conditions or engaging in other income generation activities for the whole villages. For affected individuals, the annual interest income of such compensation will be more than annual income loss due to land acquisition. See Table 6-5 for details

204. Among total 1,109 affected households, 102 households would lose less than 10% of their land holding; and 1007 households would lose 10-90% of land holding. In order to have a better idea how the affected people will restore their income and livelihood, more detail discussion on economic rehabilitation will be focused on those 1007 households who will lose 10 to 90% of their land holding. Table 6-6 provides a detailed account of land loss impact among 1007 households.

Table 6-5: Basic Information on the Affected Households

District Town Village

Total Acquired Cultivated

Land

Annual Income

Loss due to Land

Loss

Total Compensation

Received by APs

Annual Bank

Interest Income

mu CNY CNY CNY

Qinzhou Yuquan

Zaoyuanzhuang 0 0 0 0

Yanhe 102.3 102,347 8,842,752 309,496

Sunjiaping 123.7 123,689 10,686,743 374,036

Subtotal 226.0 226035.8 19529495 683532.3

Maiji Huaniu

Xiaojiazhuang 72.4 72,369 5,523,164 193,311

Dengzhuang 97.4 97,358 7,430,396 260,064

Yangpo 169.6 169,570 12,941,612 452,956

Shuiyanzhai 0 0 0 0

Jinzhuang 82.5 82,529 6,298,635 220,452

Wuzhuang 116.6 116,557 8,895,616 311,347

Xiakou 108.3 108,286 8,264,401 289,254

Subtotal 646.7 646670 49353825 1727383.9

Total 872.7 872705 68883319 2410916.2

Note: Annual income loss is based on CNY1,000 per mu and annual interest income is based on interest rate

of 3.5% per year.


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Table 6-6: Land Loss Impact for the Seriously Affected Households

Town Village Household Population Labor

Land before

Acquisition

Acquired Land

Percent of

Losses

Remaining Land

HH Person person mu mu % mu

Yuquan

Zaoyuan 0 0 0 0 0 0.00% 0

Yanhe 96 400 272 403.7 102.3 25.35% 301.4

Sunjiaping 111 433 294 462.5 123.7 26.74% 338.8

Huaniu

Xiaojiazhuang 108 534 363 629.5 72.4 11.50% 557.2

Dengzhuang 87 430 292 398.8 97.4 24.42% 301.4

Yangpe 190 933 634 1293.6 169.6 13.11% 1124.0

Shuiyanzai 0 0 0 0 0 0.00% 0

Jinzhuang 94 465 316 432.7 82.5 19.07% 350.2

Wuzhuang 195 962 654 921.4 116.6 12.65% 804.8

Xiakou 126 623 423 548.6 108.3 19.74% 440.3

Total 1007 4780 3248 5090.9 872.7 17.14% 4218.2


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205. As indicated in the table, in average, land holding of these 1007 households would decrease from per capita 0.67 mu to per capita 1.04 mu. For such land losses, detailed economic rehabilitation measures have been developed based on consultations with affected villages. They include (1) enrolling pension program for elderly (assuming one elderly per household); (2) converting some grain crops to cash crops such as apple trees or Chinese herbs; (3) engaging in non-farm activities such as small business or restaurant; and (4) deposit rest of compensation into the bank to earn interest income. Table 6-7 provides details of these rehabilitation measures for these 1007 households. The detail calculation of input and output of each rehabilitation option is presented in Table 6-8. As indicated in these tables, the net income after compensation and rehabilitation will be significantly higher than the income before land acquisition and resettlement. 206. The followings are descriptions of economic rehabilitation measures for each affected villages:

(1) Zaoyuan Village

207. Zaoyuan Village of Yuquan town has a total of 300 households, 1,020 villagers, including 633 labors. Its cultivated land is 1,600 mus. Mountain land accounts for a large proportion of the whole village area, while a limited plain is flood land. The main crops are wheat, and others are corn, potato, etc. The crops structure will remain with the current structure after the land acquisition. Agriculture income is about 35% of total income of households averagely. The other income mainly includes: migrant work, forestry, animal husbandry, and transferred from other sources. The total acquired land is 6.26 mus.


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Table 6-7: Economic Rehabilitation and Income Estimation for Serious Affected Households (1)

Village Existing Land Current Planting Income

Land Compensation Standard (part

of farmers)

Compensation Received by

Affected People

Person with Pension

Insurance

Individual Pension

Contribution

Total Pension Contribution

mu yuan yuan/mu yuan person yuan/person Yuan

Zaoyuan 0.00 0 51840 0 0 2886.4 0

Yanhe 403.74 403738 51840 5305651 96 2886.4 277094

Sunjiaping 462.50 462500 51840 6412046 111 2886.4 320390

Xiaojiazhuang 629.55 629548 45792 3313899 108 2886.4 311731

Dengzhuang 398.75 398750 45792 4458238 87 2886.4 251117

Yangpe 1293.60 1293598 45792 7764967 190 2886.4 548416

Shuiyanzai 0.00 0 45792 0 0 2886.4 0

Jinzhuang 432.70 432698 45792 3779181 94 2886.4 271322

Wuzhuang 921.40 921404 45792 5337370 195 2886.4 562848

Xiakou 548.63 548632 45792 4958640 126 2886.4 363686

Total 5090.87 5090868 41329991 1007 28864 2906605

Table 6-7: Economic Rehabilitation and Income Estimation for Serious Affected Households (2)

Village Apple Chinese Medicine

Herbs Grape Wheal

Happy Farmhouse

Small Store

Total Input Net Income

mu mu mu Mu HH HH yuan yuan

Zaoyuan 0 0 0 0.0 0 0 0

Yanhe 4.5 2.4 294.5 2 1 582080 574798

Sunjiaping 5.5 0.5 0.3 332.5 158715 362244

Xiaojiazhuang 1.2 0 0 556.0 247041 561424

Dengzhuang 2 1.2 298.2 1 285087 394836

Yangpe 4 1120.0 1 644480 1222926

Shuiyanzai 0 0.00 0 0 0

Jinzhuang 1.8 348.4 2 444655 526036

Wuzhuang 1.9 802.9 357074 811567

Xiakou 2.4 437.9 197180 448835

Total 23.3 0.5 3.9 4190.5 5 2 2916313 8291123


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Table 6-8: Input and Output Analysis of Agriculture Production

Planting Apple Chinese Medicine Herbs Grape Wheal Happy Farmhouse(or small

store)

Input

Bag yuan/mu 427 Nursery

Plant yuan/mu 500 Nursery Plant yuan/mu 750

Planting seed

yuan/mu 45 Building m2 80

Organic fertilizer

yuan/mu 339 Organic fertilizer

yuan/mu 600 Pesticide and

Fertilizer yuan/mu 1,000 Fertilizer yuan/mu 115 Seat

person

50

Chemical Fertilizer

yuan/mu 449 Chemical Fertilizer

yuan/mu 100 Cement Pillar yuan/mu 1,500 Seed yuan/mu 13.5 Initial Investment Cost

Pesticide yuan/mu 222 Pesticide yuan/mu 100 Steel Wire yuan/mu 1,500 Water yuan/mu 88 Building yuan 64,000

Labor yuan/mu 240 Labor yuan/mu 300 Rail yuan/mu 300 Pesticide yuan/mu 66 Decorati

ng yuan 80,000

Others yuan/mu 100 Others yuan/mu 250 Others yuan/mu 100 Harvest yuan/mu 73 Total yuan 144,000

Total yuan/mu 1,777 Total yuan/mu 1,850 Total yuan/mu 5,150 Other yuan/mu 40 Annual Cost

yuan 57,600

Total yuan/mu 440.5 Capacity % 65

Output

Yield kg/mu 3,139 Yield kg/mu 100 Yield 0.5kg 2,500 Yield 0.5kg/mu 1,200 Daily

Revenue yuan 1,000

Unit Price

Yuan/kg 2.01 Unit Price

Yuan/kg 100 Unit Price yuan/0.5kg 3 Unit Price

yuan/0.5kg

1.2 Daily

Minimum Income

yuan 610

Sales yuan/mu 6,314 Sales yuan/mu 10,00

0 Sales yuan/mu 7,500 Sales yuan/mu 1,440

Daily Profit

yuan 390

Net Income

yuan/mu 4,537 Net

Income yuan/mu 8,150 Net Income yuan/mu 2,350

Net Income

yuan/mu 1,000 Annual Income

yuan 142,350

Net

Income yuan 84,750

Note: Annual cost allocation is based on period of operation.


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(2) Yanhe Village of Yuquan Town

208. Yanhe Village of Yuquan town has a total of 214 households, 980 villagers, including 607 labors. Its cultivated land is 900 mus. Mountain land accounts for a large proportion of the whole village area, while a limited plain is flood land. The main crops are wheat, and others are corn, potato, etc. The crops structure will remain with the current structure after the land acquisition. Agriculture income is about 35% of total income of households averagely. The other income mainly includes: migrant work, forestry, animal husbandry, and transferred from other sources. The total acquired land is 102.3 mus. 108 households are affected by land acquisition, including 96 households, 360 people who lost more than 10% of their contracted land.

Rehabilitation measures for Farmers who lose more than 10% of their contracted land:

209. The land loss farmers will receive generous land compensation (CNY51,840 per mu) and deposit the compensation in the bank for interest income. In addition, One person per household who lose land more than 20% can participate in the rural pension insurance (individual will pay 360.4 to 5,406 Yuan for the insurance, and each elderly with 60 years old can receive the pension of 97.2 to 177 Yuan monthly). 210. With the help and guidance of the town government, the resettlement measures for the 96 households largely affected by the land acquisition include: (i) 5 households will plant “Hua Niu” apple trees on their remaining land. Because apple trees need three years to produce fruit, the farmers will have no income from apple trees in the first and second year after planting the trees. Therefore, they will use part of the remaining land to plant the trees in the first year, and increase some land in the second year. From third year, the farmers’ income will increase when they have apple fruit. In another way, the farmers can start to plant apple trees when they know the land acquisition for the project, and to have apple trees in advance; (2) 4 households will use the compensation to plant grape trees. Because grape trees need two years to produce fruit, the farmers will have no income from grape trees in the first year after planting the trees. Therefore, they will use part of the remaining land to plant the trees in the first year to maintain current life conditions. From second year, the farmers’ income will increase when they have grape fruit; (3) 2 households have relatively larger housing area. They will use the compensation to develop agri-tourism (Happy Farm House); (4) 1 household will open a grocery store; and (5) others will plant wheal continually and do off-farm work. (3) Sunjiaping Village of Yuquan Town 211. Sunjiaping Village of Yuquan town has a total of 360 households, 1500 villagers, including 986 labors. Its cultivated land is 1500 mus. Mountain land accounts for a large proportion of the whole village area, while a limited plain is flood land. The main crops are wheat, and others are corn, potato, etc. The crops structure will remain with the current structure after the land acquisition. Agriculture income is about 35% of total income of households averagely. The other income mainly includes: migrant work, forestry, animal husbandry, and transferred from other sources. The total acquired land is 133.718 mus. 120 households are affected by land acquisition, including 111 households, 433 people who lost more than 10% of their contracted land.


212. The land loss farmers will receive generous land compensation (CNY51,840 per mu) and deposit the compensation in the bank for interest income. In addition, One person per


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household who lose land more than 20% can participate in the rural pension insurance (individual will pay 360.4 to 5,406 Yuan for the insurance, and each elderly with 60 years old can receive the pension of 97.2 to 177 Yuan monthly). 213. With the help and guidance of the town government, the resettlement measures for the 27 households largely affected by the land acquisition include: (i) 5 households will plant “Hua Niu” apple trees on their remaining land. Because apple trees need three years to produce fruit, the farmers will have no income from apple trees in the first and second year after planting the trees. Therefore, they will use part of the remaining land to plant the trees in the first year, and increase some land in the second year. From third year, the farmers’ income will increase when they have apple fruit. In another way, the farmers can start to plant apple trees when they know the land acquisition for the project, and to have apple trees in advance; (2) 2 households will use the compensation to plant grape trees. Because grape trees need two years to produce fruit, the farmers will have no income from grape trees in the first year after planting the trees. Therefore, they will use part of the remaining land to plant the trees in the first year to maintain current life conditions. From second year, the farmers’ income will increase when they have grape fruit; (3) 1 household will plant Chinese medicine; and (4) others will plant wheal continually and do off-farm work.

(4) Xiaojiazhuang Village of Huaniu Town

214. Xiaojiazhuang Village of Huaniu town has a total of 199 households, 958 villagers, including 593 labors. Its cultivated land is 1,160 mus. Mountain land accounts for a large proportion of the whole village area, while a limited plain is flood land. The main crops are wheat, and others are corn, potato, etc. The crops structure will remain with the current structure after the land acquisition. Agriculture income is about 35% of total income of households averagely. The other income mainly includes: migrant work, forestry, animal husbandry, and transferred from other sources. The total acquired land is 85 mus, all of which are cultivated land. 127 households are affected by land acquisition, including 108 households, 432 people who lost more than 10% of their contracted land.


215. The land loss farmers will receive generous land compensation (CNY45,792 per mu) and deposit the compensation in the bank for interest income. In addition, One person per household who lose land more than 20% can participate in the rural pension insurance (individual will pay 360.4 to 5,406 Yuan for the insurance, and each elderly with 60 years old can receive the pension of 97.2 to 177 Yuan monthly). 216. With the help and guidance of the town government, the resettlement measures for the 2 households largely affected by the land acquisition are to plant “Hua Niu” apple trees. The town government will provide training to the affected farmers and purchase their apple in uniform basis; and others will plant wheal continually and do off-farm work.

(5) Dengzhuang Village of Huaniu Town

217. Dengzhuang Village of Huaniu town has a total of 216 households, 1,069 villagers, including 662 labors. Its cultivated land is 990 mus. Mountain land accounts for a large proportion of the whole village area, while a limited plain is flood land. The main crops are wheat, and others are corn, potato, etc. The crops structure will remain with the current structure after the land acquisition. Agriculture income is about 35% of total income of households averagely. The other income mainly includes: migrant work, forestry, animal husbandry, and transferred


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from other sources. The total acquired land is 103 mus, all of which are cultivated land. 96 households are affected by land acquisition, including 87 households, 42 people who lost more than 10% of their contracted land.


218. The land loss farmers will receive generous land compensation (CNY45,792 per mu) and deposit the compensation in the bank for interest income. In addition, One person per household who lose land more than 20% can participate in the rural pension insurance (individual will pay 360.4 to 5,406 Yuan for the insurance, and each elderly with 60 years old can receive the pension of 97.2 to 177 Yuan monthly). 219. With the help and guidance of the town government, the resettlement measures for the 87 households largely affected by the land acquisition include: (i) 4 households will plant “Hua Niu” apple trees on their remaining land. The town government will provide training to the affected farmers and purchase their apple in uniform basis. Because apple trees need three years to produce fruit, the farmers will have no income from apple trees in the first and second year after planting the trees. Therefore, they will use part of the remaining land to plant the trees in the first year, and increase some land in the second year. From third year, the farmers’ income will increase when they have apple fruit. In another way, the farmers can start to plant apple trees when they know the land acquisition for the project, and to have apple trees in advance; (2) 2 households will use the compensation to plant grape trees. Because grape trees need two years to produce fruit, the farmers will have no income from grape trees in the first year after planting the trees. Therefore, they will use part of the remaining land to plant the trees in the first year to maintain current life conditions. From second year, the farmers’ income will increase when they have grape fruit; and (3) others will plant wheal continually and do off-farm work..

(6) Yangpo Village of Huaniu Town

220. Yangpo Village of Huaniu town has a total of 214 households, 1,059 villagers, including 656 labors. Its cultivated land is 1,457 mus. Mountain land accounts for a large proportion of the whole village area, while a limited plain is flood land. The main crops are wheat, and others are corn, potato, etc. The crops structure will remain with the current structure after the land acquisition. Agriculture income is about 35% of total income of households averagely. The other income mainly includes: migrant work, forestry, animal husbandry, and transferred from other sources. The total acquired land is 173.1 mus, all of which are cultivated land. 206 households are affected by land acquisition, including 190 households, 939 people who lost more than 10% of their contracted land.


221. The land loss farmers will receive generous land compensation (CNY45,792 per mu) and deposit the compensation in the bank for interest income. In addition, One person per household who lose land more than 20% can participate in the rural pension insurance (individual will pay 360.4 to 5,406 Yuan for the insurance, and each elderly with 60 years old can receive the pension of 97.2 to 177 Yuan monthly).

222. With the help and guidance of the town government, the resettlement measures for the 190 households largely affected by the land acquisition include: (i) 4 households will plant “Hua Niu” apple trees on their remaining land. The town government will provide training to the


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affected farmers and purchase their apple in uniform basis. Because apple trees need three years to produce fruit, the farmers will have no income from apple trees in the first and second year after planting the trees. Therefore, they will use part of the remaining land to plant the trees in the first year, and increase some land in the second year. From third year, the farmers’ income will increase when they have apple fruit. In another way, the farmers can start to plant apple trees when they know the land acquisition for the project, and to have apple trees in advance; (2) 1 household has relatively larger housing area. They will use the compensation to develop agri-tourism (Happy Farm House); and (3) others will plant wheal continually and do off-farm work..

(7) Jinzhuang Village of Huaniu Town

223. Jinzhuang Village of Huaniu town has a total of 315 households, 1,559 villagers, including 966 labors. Its cultivated land is 1,450 mus. Mountain land accounts for a large proportion of the whole village area, while a limited plain is flood land. The main crops are wheat, and others are corn, potato, etc. The crops structure will remain with the current structure after the land acquisition. Agriculture income is about 35% of total income of households averagely. The other income mainly includes: migrant work, forestry, animal husbandry, and transferred from other sources. The total acquired land is 91.309 mus. 104 households are affected by land acquisition, including 94 households, 465 people who lost more than 10% of their contracted land.



225. With the help and guidance of the town government, the resettlement measures for the 94 households largely affected by the land acquisition are (i) 3 households will plant “Hua Niu” apple trees. The town government will provide training to the affected farmers and purchase their apple in uniform basis; (ii) 2 households will use the compensation to develop agri-tourism (Happy Farm House); and (iii) other affected labors have chance to work on town’s enterprises.

(8) Wuzhuang Village of Huaniu Town

226. Wuzhuang Village of Huaniu town has a total of 342 households, 1,692 villagers, including 1,049 labors. Its cultivated land is 1,616 mus. Mountain land accounts for a large proportion of the whole village area, while a limited plain is flood land. The main crops are wheat, and others are corn, potato, etc. The crops structure will remain with the current structure after the land acquisition. Agriculture income is about 35% of total income of households averagely. The other income mainly includes: migrant work, forestry, animal husbandry, and transferred from other sources. The total acquired land is 131.1 mus, all of which are cultivated land. 220 households are affected by land acquisition, including 195 households, 964 people who lost more than 10% of their contracted land.



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228. With the help and guidance of the town government, the resettlement measures for the 6 households largely affected by the land acquisition. (i) 3 of them are to plant “Hua Niu” apple trees. The town government will provide training to the affected farmers and purchase their apple in uniform basis; and (2) others will plant wheal and do off-farm work.

(9) Xiakou Village of Huaniu Town

229. Xiakou Village of Huaniu town has a total of 367 households, 1,816 villagers, including 1,125 labors. Its cultivated land is 1,598 mus. Mountain land accounts for a large proportion of the whole village area, while a limited plain is flood land. The agriculture products are apple and wheat, and others are corn, potato, etc. The crops structure will remain with the current structure after the land acquisition. Agriculture income is about 35% of total income of households averagely. The other income mainly includes: migrant work, forestry, animal husbandry, and transferred from other sources. The total acquired land is 110 mu, all of which are cultivated land. 128 households are affected by land acquisition, including 126 households, 623 people who lost more than 10% of their contracted land.


230. The land loss farmers will receive generous land compensation (CNY45,792 per mu) and deposit the compensation in the bank for interest income. In addition, One person per household who lose land more than 20% can participate in the rural pension insurance (individual will pay 360.4 to 5,406 Yuan for the insurance, and each elderly with 60 years old can receive the pension of 97.2 to 177 Yuan monthly). 231. With the help and guidance of the town government, the resettlement measures for the 128 households largely affected by the land acquisition. (i) 4 of them are to plant “Hua Niu” apple trees. The town government will provide training to the affected farmers and purchase their apple in uniform basis; (2) others will plant wheal and do off-farm work.

6.6 RESETTLEMENT AND REHABILITATION OF AFFECTED SELF-EMPLOYED HOUSEHOLDS

232. The project will affected a total 12 self-employed households dispersing in each sub-component affected area. The spaces used by these self-employed households are owned by the village collective, who built these houses for renting.

233. According to field investigation, the affected self-employed households were divided into two kinds: one kind is non-productive, non-working facilities and buildings, such as toilets, electricity distribution room, unused buildings; such facilities are directly compensated in cash, or restored during construction so that it has no damages to the surrounding population .The second kind is productive and working enterprises. Only part of non-critical structures (such as walls, porters, etc.) needs to be demolished, and they can be reconstructed nearby by cash compensation so that it does not affect the normal production and operation. The enterprises requiring whole demolition are leasing businesses, so the alternative sites for business


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operation should be arranged before the demolition. There is no crack in transition period and actual business losses by using the fees for relocation. Additionally, most of the affected enterprises are only engaged in small-scale business, they are easy to find new alternative sites. Based on the analysis above, housing demolition almost has no effect on business activities, and enterprises and employees will not be harmed. Those who need to be relocated will receive sufficient compensation for relocation and transition fees determined by Tianshui Price Bureau and used to compensate for the removal and installation of business equipment. All APs’ incomes are not reduced. The resettlement program for the affected self-employed people is provided in Table 6-9. The TPMO will assist the affected individual proprietors to obtain the replacement space for production workshop, so as to guarantee their normal operation.


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Table 6-9 Resettlement and Rehabilitation Plan of Affected Self-employed Households

Name of Project

District Town Village Name Household Worker Construction

Area(m2)

Explanation Impacts/Business Instruction

Resettlement Plan

Chengji Road

Qinzhou Yuquan

Zaoyuan Zhanglijun’s Kennel

1 2 140.95 Temporary

building, renting

Removed

The property owners will be compensated according to temporary building price. The tenants get the compensation after terminate the contract.

Subtotal(a) 1 2 140.95

Yanjiahe

Well room 1 1 25.11 Rebuild on other site in the village

Primary School

1 243.2 Rebuild on other site in the village

Xianhaiping 1 6 980.66 Renting Steel Factory

The property owners will be compensated according to temporary building price. The tenants get the compensation after terminate the contract.

Subtotal(b) 3 7 1248.97

Total(a+b) 4 9 1389.92

Chiyu Road

Qinzhou

Xishili Office Occupancy

1 2 174 Office Occupancy

Village committee takes charge of rebuilding after being compensated.

Fengle Corporation, ect

Office Occupancy

1 8 866.47 Office Occupancy


Office Occupancy

1 9 213.96 Office Occupancy


Office Occupancy

1 12 500 Office Occupancy


97

Name of Project

District Town Village Name Household Worker Construction

Area(m2)

Explanation Impacts/Business Instruction

Resettlement Plan

Troops 1 0 755.96

Subtotal 5 31 2510.39


Qinzhou


State-owned Land


1 10 420.2

Waste Recycling Station

The property owners can independently decide the restoration plan under the government’ coordination after being compensated.


State-owned Land

Tianshui Weiguang Corporation on SOL

1 3 244

Yitong Xiguan Street Office

State-owned Land

Public Toilet 1 0 74

Tianguang Subtotal（Shuangqiao South Road+

Shuangqiao North Road） 3 13 738.2

Total 12 53 4638.51

Note: All of affected employees get the jobs and have relevant incomes.


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6.7 RESETTLEMENT AND REHABILITATION OF AFFECTED SMALL BUSINESSES OR SHOPS

234. According to the resettlement survey, 20 small enterprises or businesses, are affected by the demolition in the subcomponent of Shuangqiao Road. The enterprises or businesses owners said the demolition of enterprises or businesses was benefit to municipal construction and they could rebuild the shops after road construction and the business would be better than the present.

235. Shop employees can continue to receive wages during the transition period. When relocation is complete, they can continue to work in the same shop. Tenants rebuild facades after receiving compensation for demolition and the operators of these enterprises or businesses have the opportunity to continue their business. Therefore, the operators of 20 enterprises or businesses will receive compensation for business suspense losses and transition costs and have priority to lease the facades. In addition, operators can continue their business in order to reduce losses by renting other houses. These houses will be removed only after the new operation sites are in place to ensure the incomes of the APs are not reduced. The resettlement program for the affection shops and stores is provided in Table 6-10.


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Table 6-10 Restoration Plan for the Affected Shops

Project District Town/Enterprises Village Name Household worker Subtotal (square meter)

Explanation Business

Instruction The RP

Chiyu Road Qinzhou

Xituanzhuang Dwelling changed into shops

0 0 0

Renting


The property owners will be compensated for house space using for operation according to residence building price. The tenants get the compensation when terminating the contract.

Yanxin Dwelling changed into shops

0 0 0

Subtotal 0 0 0 Renting




shops 10 40 416.7


shops 10 30 420

Renting


Total 20 70 836.7

Note: All of affected employees get the job and have relevant incomes.


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6.8 REHABILITATION OF SPECIAL FACILITIES

236. The special facilities affected by the Component mainly are electric and telecommunication facilities, for which the resettlement agency will pay compensation by replacement costs on the basis of full consultation with power and telecommunication departments. These facilities will be rehabilitated and reconstructed before land acquisition is implemented, so as to ensure the normal production and livelihood of local population.

6.9 RESETTLEMENT AND REHABILITATION OF AFFECTED VULNERABLE GROUPS

237. The RO and village committees will provide special supports for vulnerable people who will be affected by the Project.

The villager committee will offer labors to help vulnerable families in resettlement.

The villagers committee will arrange transition houses for vulnerable families if needed.

The families of vulnerable groups have priority in selecting housing area, house type and location of collectively re-constructed houses.

For houses suitable for small business in relocation site, the vulnerable families are given priority to rent them.

A total of CNY 30,000 is set up as the supporting fund of vulnerable group and other households who need special assistance.

CNY 1,000 will be disbursed to each family who live under the MLGL as a living subsidy. CNY 1,500 will be disbursed to each family who has disabled member(s) as a living subsidy. CNY 2,000 will be disbursed to each family who live under the MLGL as well as has disabled member(s) as a living subsidy. For vulnerable families, their basic living conditions and expenditure shall be guaranteed after resettlement.

6.10 SCHEDULE OF RESETTLEMENT AND REHABILITATION

238. The civil engineering of this Component is planned to be commenced in June 2012. In order to guarantee that affected population and organizations will be properly resettled, LAR will be finished prior to civil engineering. See Table 6-11 for detailed plan of implementing project. See Table 6-12 for the schedule of all kinds of resettlement activities.

Table 6-11 The Plan for Land Acquisition

Name of Subproject

No. of Pile (path) Planned Acquired Date

Chengji Road

K0+000--K1+870 June 30, 2013

K1+870--K2+580 October 30, 2012

K2+580--K3+450 January 30, 2013

K3+450--K5+600 June 30, 2012

K5+600--K9+600 January 30, 2013

K9+600--K10+383 link K0+000--K0+638

June 30, 2013

Chiyu Road K0+000--K0+110 August 30, 2012


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Name of Subproject

No. of Pile (path) Planned Acquired Date

K0+110--K0+500 June 30, 2013

K0+500--K1+983 August 30, 2012

Shuangqiao Bridge K0+000--K0+200 August 30, 2013

K0+500--K0+800 June 30, 2013


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Table 6-12 Schedule of Resettlement Activities

Activities

2010-2011 2012 2013 2014 2015 2016 2016

1 2 3 4 5 6 7 8 9 10

11

12

I II III

IV

I II III

IV

I II III

IV

I II III

IV

I II III

IV

I II III

IV

Project Procedure

Feasibility study preparation and approval

Preliminary design and detailed design

Preparation of bidding documents

Engineering tendering process & signing contract

Civil work construction from commence to completion

Planning of Land Acquisition and Resettlement

Land use approval

Finalize the scope of LAR

Conduct socioeconomic survey

Conduct measurement survey of AP

Establishment of cut-off date

Determine compensation standards

Prepare the RP

Conduct detailed measurement survey

Identify and confirm poor and vulnerable AP

Finalize compensation/resettlement strategies

Institutional setup and training

Permanent Land Acquisition and Resettlement

Hold mobilization meetings and publicize policies

Announce public notification

Negotiate and sign contracts

Disburse compensation payment & acquire land

Construction of infrastructure & houses

House demolition notification


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Activities

2010-2011 2012 2013 2014 2015 2016 2016

1 2 3 4 5 6 7 8 9 10

11

12

I II III

IV

I II III

IV

I II III

IV

I II III

IV

I II III

IV

I II III

IV

Size of housing chosen

Allocation of housing unit

Decision of payment scheme

Relocation timing

Final move to the new resettlement site

Grievance redress after each stage & agreement

Demolition of existing houses after the move to new site

Livelihood and Income Restrora

Employment of AP in the Project construction

Implementation of measures to increase income of AP

New skill training

Institution, enterprise and shop rehabilitation

M&E

Establish internal monitoring system & formats

Engage monitoring agency

Approve TOR by ADB

Training of resettlement staff

Monitor LAR activities

Monitor income restoration programs

Conduct external evaluation


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6.11 CAREER TRAINING FOR RELOCATORS

Training investigation: Regular investigation on AP’s training demands should be conducted

before training starts. It can not only choose proper training items，but also give priority to items. Additionally, the effect of previous training can be evaluated and improved.

Training aim: Training is in accordance with APs’ demands so that APs’ living and working conditions will not be worse.

Training goal: For villagers affected by land acquisition, at least two persons (one male and one female) of each household are arranged to take part in training if possible.

Training content: training plan is shown in Table6-13.

Table 6-13 Training plan for affected villagers

Skills Goal(person) Budget(10 thousand)

1 Plant apple tree 300 8

2 Plant Chinese herbal medicine 120 12

3 Develop happy farmhouse 80 8

4 Shop assistant 130 32

5 Automobile 30 6

6 Marketing 120 12

7 Server of star-rated hotel 70 8

8 Property management 40 8

9 Total 890 94


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VII. BUDGET AND MANAGEMENT OF RESETTLEMENT

7.1 COMPOSITION OF RESETTLEMENT FUND

239. The resettlement budget of this component are mainly composed of six parts, i.e. land acquisition compensation, relocation compensation, specialized compensation for rehabilitation and conversion, administrative cost, and other relevant cost and contingency budget.

7.1.1 Land acquisition compensation

240. Land acquisition compensation is calculated according to the compensation standards of Tianshui. Refer to Table 4-1 for more details.

241. The implementation of pension insurance is estimated according to: "old-age insurance on Provisional Measures of landless farmers,"

7.1.2 Relocation compensation

242. Relocation compensation includes:

(i) Compensation for rural private houses

243. This is calculated according to floor space and compensation rates of rural private houses. House prices will be calculated by estimating the replacement cost.

(ii) Compensation for rural enterprises and public institutions

244. This is calculated according to the type and floor space of buildings to be relocated of enterprises and public institutions. House prices will be calculated by estimating the replacement cost.

(iii) Compensation for urban residential houses

245. This is calculated according to replacement cost and compensation rates of rural private houses.

(iv) Bonus

(v) Moving allowances and transition allowances

(vi) Compensation for different lot

(vii) Operating losses

7.1.3 Specialized compensation for rehabilitation and conversion

246. The ground attachments, compensation and public facilities for private households the self-employed households and shops are calculated according to the actual number of survey.

7.1.4 Administrative cost

247. Administrative cost is 2% of compensation for houses relocation and specialized compensation. It is mainly used for preparation prior to resettlement and the office cost and administrative cost during implementation of the resettlement. Specifically, it is composed of purchase of office products, employee salary, transportation, communication, travel and so on.


106

7.1.5 Other relevant costs

248. Some other costs incurred during the preparation and implementation of resettlement includes survey and design research expenses, training fees, reclamation costs, new construction land compensation fees for new vegetable field development fund, tax, food regulation fund, land acquisition and management fees.

7.1.6 Administrative cost

249. Administrative cost is 5% of the direct resettlement expenses. It is mainly used for preparation prior to resettlement and the office cost and administrative cost during implementation of the resettlement. Specifically, it is composed of purchase of office products, employee salary, transportation, communication, travel and so on.

7.1.7 Contingency cost

250. Contingency cost includes basic contingency and price contingency, which will be 5% and 10% of the basic cost respectively.

7.2 RESETTLEMENT BUDGET

251. According to the compensation rates and statistical data of all kinds of affected items, the total resettlement fund of the ADB financed project - Road and Bridge Component is about CNY 290,419,078. See Table 7-1 for detailed fund budget. The component is planned to complete within 5 years. The investment plan is presented in Table 7-2. The composition of the budget is listed in Table 7-3.

252. The part of pension insurance that should be paid by individuals is included in the land compensation fees. But the part in the government subsidy shall be counted in the land acquisition and resettlement cost of the Project. Since the amount of the government subsidy is related to the quantity of acquired land and age of an applicant for the social insurance, it can't be accurately calculated at the present stage. However, because the maximum farmland acquired by the Project is less than 40%, if taking 40% of land acquisition and the age of 60, the part of the government subsidy for the applicant will need CNY 10,812. There are 175 households in total with the proportion of land acquisition exceeding 20% of their total farmland in this Component. In addition, the subsidy will be calculated according to the standard of one person in one household.


107

Table 7-1 Resettlement Budget of the Project

Unit Standards Chengji

Road Chiyu Road

Shuangqiao South

Road

Maiji New Town Subtotal

Amount (CNY)

I. Land acquisition cost

Qinzhou mu 86400 280.64 37.51 1.83 0.00 319.98 27646099

Maiji mu 76320 709.19 709.19 54125686

Young Crops mu 100000 0.00 11.60 11.60 1160000

Pension insurance

person 10812 1109 0 1109.00 11990508

State-owned land

mu 4000 100 10 10.00 20.00 140.00 560000

Subtotal 95482293

II. House relocation compensation

Rural houses Concrete-brick m2

1500 2414.47 16976.6

9 0 17300 36691 55036740

Brick-wood m2 1100 2406.72 0 0 0 2407 2647392

Brick-earth-wood

m2

800 365.24 0 0 0 365 292192

Earth-wood m2 500 442.77 0 0 0 443 221385

Attachments m2 300 548.95 0 0 0 549 164685

Simple shed m2 200 180.69 0 0 0 181 36138

Reward m2

150 6358.84 16976.6

9 0 17300 40636 6095330

Moving subsidies

0.50% 6983497

25465035 0

293696737

326145269 1630726

Property rights exchange subsidies

person 0 0 0 0 0 0

Transition costs HH 3600 36 59 0 55 150 540000

Urban houses houses m2 4000 0 0 3696 0 3696 14784000

Difference compensation

8% 0 1182720

Reward m2 150 0 0 3696 0 3696 554400

Moving subsidies

0.50% 0 7392

Property rights exchange subsidies

person 0 0 0 0 0 0

Transition costs person 3600 0 0 48 0 48 172800

Self-employed Concrete-Brick m2 1500 583.62 2317.79 738.2 0 3640 5459415


108


Road Chiyu Road

Shuangqiao South

Road


Amount (CNY)

households

Brick-wood m2 1100 605 193 0 0 797 877140

Attachments m2 150 201.5 0 0 202 30225

Steel plant m2 750 0 0 0 0 0

Simple shed m2 100 0 0 0 0 0

Operating losses

5000 4 5 3 12 60000

Reward m2 1500 1390 2510 738 4639 6957765

Houses converted into shops

Concrete-Brick m2

3000 0 836.7 837 2510100

Brick-wood m2 1500 0 0 0

Attachments m2 300 0 0 0

Steel plant m2 3000 0 0 0

Simple shed m2 300 0 0 0

Operating losses

1200 0 0 20 20 24000

Reward m2 150 0 0 837 837 125505

Temporary buildings m

2 200 930 0 0 930 186080

Subtotal 99596130

III. Specialized Compensation

Poles 1000 105 0 0 0 105 105000

Transformers 5000 4 4 20000

Trees 100 215 215 21500

Well 840 12 12 10080

Subtotal 146500

IV. Administrative Costs

2%

3904498

V. Other Costs

1 Survey design and research costs and M&E costs

1.5%

2928374

2 Training costs

1.0%

1952249

3 Reclamation costs

m2

10 558012.0 0.0 0.0 558012 5580120

4 New m2 26 558012.0 14007 0.0 572019 14872494


109


Road Chiyu Road

Shuangqiao South

Road


Amount (CNY)

construction land use costs

5 New vegetable field development fund

mu

8000 836.6 0.0 837 6693040

6 Arable land occupation tax

mu 20800 836.6 0.0 837 17401904

7 Food regulation Fund

2% 82931785 1658636

8 Land administrative costs

2.80% 82931785 2322090

Subtotal 53408907

I～V Total 252538328

VI Contingency

1 Basic Contingency

5%

12626916

2 Price Contingency

10%

25253833

Subtotal 37880749

VII Total 290419078


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Table 7-2 Investment Plan

Year 2011 2012 2013 2014 2014 Total

Proportions 0.05 0.47 0.38 0.05 0.05 1

Amount (CNY) 14520954 136496966 110359249 14520954 14520954 290419078

Table 7-3 Proportion of cost Analysis

Quantities (CNY) Proportions (%)

Land Compensation 95482293 32.88

Houses Compensation 99596130 34.29

Specialized Compensation 146500 0.05

Administrative Costs 3904498 1.34

Other Costs (including survey and external monitoring and evaluation) 53408907 18.39

Contingency 37880749 13.04

Total 290419078 100.00

7.3 ALLOCATION AND PAYMENT OF RESETTLEMENT FUND

7.3.1 Resettlement fund receivers

253. The resettlement fund of this project will be allocated to different receivers according to the property rights of affected items. See Table 7-4 for details. For the sake of full and timely payment of compensation to affected people and organizations, the roles of independent monitoring organization, internal monitoring organization and national auditing body will be given full play to, and intermediate links will be minimized for paying the resettlement fund in a simple and convenient way.

Table 7-4 Resettlement Fund Receivers

Receiver Expense Category

Self-employed households

Relocation compensation, removal compensation, transition allowances, and compensation for attachments to the ground and operating losses.

Shops Relocation compensation, removal compensation, transition allowances, and compensation for attachments to the ground and operating losses.

Village Land compensation, compensation for attachments, compensation for collectively-owned facilities in 40% of comprehensive land prices

Household Compensation for house relocation, attachments and young crops (only for families whose young crops are acquired), moving allowances, and transition allowances, among them, land compensation in 60% of comprehensive land prices.

Other departments

All kinds of land acquisition taxes


111

7.3.2 Source and flow of resettlement fund

254. The resettlement fund of the Project is raised by the Tianshui Urban Investment Construction Group Co. The fund will be directly paid through special accounts to receivers.


112

7.4 PAYMENT, MANAGEMENT AND MONITORING OF RESETTLEMENT FUND

7.4.1 Payment of resettlement fund

255. The payment of resettlement fund will be implemented in conformity with the following principles:

All the expenses related to land acquisition will be counted in the total construction budget estimate. Subcomponent implementing agencies should review the respective compensation fees and apply for payment approval of the Tianshui Urban Investment Company will directly pay compensation fees through special accounts to relevant organizations and personnel;

The specified banks should directly pay all kinds of compensation fees in the form of bankbooks to affected families before relocation is implemented;

Land compensation should be paid before land acquisition is implemented.

7.4.2 Management and monitoring of resettlement fund

256. The payment of resettlement fund must be implemented in strict accordance with relevant laws and regulations of the state on LAR as well as the policies in the RP, and should not be lower or less than the compensation rates and range stipulated in the plan.

257. Each component office should report monthly construction scheduling to the Tianshui Urban Investment Company. The component offices should submit reviewed payment reports with signatures of principals in charge to the Tianshui Urban Investment Construction Group Co. for payment. The company will disburse construction progress payment accordingly, and will give payment to affected objects directly. Each component office is responsible for supervising the use of payment.

258. Each component office should examine and approve land compensation, housing compensation, compensation for attachments, compensation for physical relocation (including indoor facilities), moving allowances, transition allowances, rewards for ahead-of-schedule relocation, and losses of small businessmen and of enterprises and public institutions.

259. The Tianshui Urban Investment Construction Group Co. will engage consulting organizations to conduct regular internal check of use of resettlement fund of ROs.

260. The financial department and auditing department of the city are entitled to monitor and audit the use of the special fund.

261. The external monitoring organization will carry out special follow-up monitoring of the payment of compensation for affected families and enterprises and public institutions.


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VIII. RESETTLEMENT ORGANIZATIONS

8.1 ORGANIZATIONAL STRUCTURE

262. In order to implement the resettlement of the Project well, all levels of relevant governments of Tianshui City guarantee the preparation of the Project and the smooth progress of resettlement by establishing and strengthening relevant organizations. Since March, 2009, the organizations with definite responsibilities for resettlement of the Project have been set up. The main organizations concerned include:

Tianshui Municipal Finance Bureau

TUCIC

Tianshui Land Resources Administration Bureau

Independent Monitoring Organization

263. See Figure 8-1 for the structure of resettlement organizations.

Figure 8-1 Resettlement organizations for the Project

Tianshui Municipal Government

Tianshui Urban Construction and Investment Group Corporation

External Monitoring Organization

Land acquisition House Demolition

Land Resources Bureau of Qinzhou District

Land Resources Bureau of Maiji District

The Department of Land

Reserve, TUCIC

Township Government Township Government Township Government

Villages Villages Households

Households Households Households (Units)


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8.2 RESPONSIBILITIES OF ORGANIZATIONS

8.2.1 Tianshui Municipal Finance Bureau

As the project owner, it is responsible for submitting all the plans and reporting work pertinent to resettlement to national, provincial and municipal departments for approval and comments.

Be responsible for raising resettlement fund

Be liable for payment of resettlement fund.

8.2.2 TUCIC

Entrusting resettlement consultation institutions to make preliminary preparations for resettlement

Coordinating consultation and other organizations during the preparation of the project

Demolishing houses on state-owned land

Applying to relevant department for land planning license and land use and construction license

Coordinating with relevant departments to work out policies of the RP

Aligning the progress of project construction with the RP

Coordinating work of relevant organizations

Organizing detailed resettlement survey of subcomponents and updating RP based on final design

Implementing subcomponent resettlement

Determining and submitting subcomponent resettlement fund plans

Tracing and supervising the practical payment of subcomponent resettlement fund

Dealing with grievance and appeals of displaced persons in the process of resettlement

Coordinating with independent monitoring organization

Collecting and sorting out all kinds of information needed for internal monitoring report

Submitting subcomponent resettlement files

Receiving the ADB ROrs for inspection together with the Resettlement Division

8.2.3 The Department of Land Reserve, TUCIC

Implementing first-phase preparations for resettlement together with resettlement consulting organizations

Setting forth all the policies of the RP

Training persons in charge of resettlement of subcomponents

Reporting resettlement progress to TUCIC


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Reporting work of communication and coordination with other departments during resettlement implementation to TUCIC

Verifying resettlement fund plans of subcomponents

Submitting resettlement fund plan to TUCIC and supervising the payment of fund

Directing and supervising the implementation of subcomponent resettlement

Managing data file on resettlement

Carrying out internal monitoring of resettlement

Dealing with grievance and appeals of displaced persons in the process of resettlement

Communicating with independent organization in the process of resettlement implementation

8.2.4 External monitoring organization

264. During the implementation of the RP, the external monitoring organization is responsible for external monitoring of resettlement and for submitting resettlement progress reports and supervision reports to project resettlement office (PRO) of the IA and the TPMO. The responsibilities of this organization are described in detail in the chapter concerning external monitoring.

8.3 PERSONNEL AND FACILITIES OF RESETTLEMENT ORGANIZATIONS AT ALL LEVELS

265. There are five personnel in the PRO. They are very capable of implementing organization and coordination, have rich experience in resettlement, and are skillful in using computers. All subcomponents resettlement organizations are also composed of high-quality and experienced personnel, and therefore can completely meet the requirements of resettlement. See Table 8-1 for personnel roster. See Table 8-2 and 8-3 for personnel and facilities of subcomponent resettlement organizations at all levels.

Table 8-1 Personnel of ROs at all levels for Tianshui Urban Road Network Project

Resettlement Organization Person in charge Personnel

Tianshui Municipal Finance Bureau Cui Xiaoping 2

TUCIC Gao Qilong 6

The Department of Land Reserve, TUCIC Zhang Xiaoming 6

Independent external monitoring agency The School of Economics and Management, Tongji University

Table 8-2 Arrangement of Personnel of Resettlement Organizations at All Levels

Resettlement organizations

Total number of personnel

Personnel and qualification Work duration

Tianshui Municipal Finance Bureau

2

Personnel who are proficient in foreign language, computer and engineering technology and familiar with resettlement policies

December 2009- completion of resettlement


116

Resettlement organizations

Total number of personnel

Personnel and qualification Work duration

TUCIC 6 The person in charge has five years of resettlement experience, college degree education background

December 2009- completion of resettlement

The Department of Land Reserve, TUCIC

6 Long-term experience in similar work, with an educational background of postgraduate or above level.

December 2009 - completion of resettlement

External monitoring organization

5 Long-term experience in similar work, with an educational background of postgraduate or above level.

February 2011- completion of assessment of resettlement

Table 8-3 Facilities of Resettlement Organizations at All Levels

Organization Computer

(set) Camera (set) Vehicle (set) Office (m

2)

Tianshui Municipal Finance Bureau 1 1 1 50

TUCIC 3 2 1 100

The Department of Land Reserve, TUCIC 4 2 2 120

External monitoring organization 5 1 1 100

8.4 MEASURES FOR INSTITUTIONAL STRENGTHENING

266. In order to implement the RP successfully, guarantee the interests of affected population, and satisfy the overall project schedule, TUCIC will take the following measures to strengthen the capabilities of the organizations and improve efficiency.

Leadership responsibility system: Responsible leaders of district governments will organize relevant departments including development and reform commissions to form a strong leading group.

Arrangement of high-quality personnel: Personnel of resettlement organizations at all levels should have the idea of considering the overall situation, good grasp of policies and professional abilities, especially experience in mass work.

Determination of responsibilities: To determine the responsibilities of ROs at all levels according to the requirements of ADB and relevant national laws and regulations.

Training of resettlement personnel: To give regular training on resettlement policies and information management to resettlement personnel according to actual needs.

Supervision by the public: All the resettlement information will be released to the public for supervision.

Provincial RO will hold irregular resettlement report meetings and issue relevant briefings to all districts.

Project office will provide necessary vehicles and office facilities for resettlement organizations at all levels to meet their needs.

267. See Table 8-4 for plan of reinforcement and training of organizations in future.


117

Table 8-4 Schedule of operational training of resettlement organizations in future

NNO.

Training organization

Content Trainee Date

A B C D

11

TUCIC To learn and investigate experiences in resettlement of ADB financed projects of other provinces

Personnel of resettlement division and subcomponent ROs

2010－2011

22

External Monitoring Agency

Resettlement policies of ADB Personnel of resettlement division and subcomponent ROs

Mar. 2011

33

External Monitoring Agency

The latest change of resettlement policies of the state


Mar. 2011

44

TUCIC Experiences and lessons of resettlement of other places


May. 2011

55

TUCIC Computer operation and data processing


May. 2011

6 TUCIC

Work process and policies of resettlement of the Asian Development Bank Financed Project

Street (township) ROs, village-level resettlement groups

Mar. 2011

7 TUCIC Resettlement policies and practices Street (township) ROs, village-level resettlement groups

Jun. 2011

8 TUCIC To investigate international resettlement experience

Personnel of project resettlement division and subcomponent ROs

2011－2013


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IX. COMPLAINTS AND APPEALS

268. Since LAR relate to various aspects, it is a complicated work. It is inevitable that the displaced persons may be dissatisfied at some matters such as resettlement and compensation and have some complaints during the implementation, as it relates to the benefit of displaced persons. To ensure the complaints of displaced persons can be handled smoothly and rapidly, the resettlement division of the Tianshui Urban Investment Company will establish a transparent and feasible collecting and handling procedure of dissatisfaction and complaints to deal with such issues objectively and efficiently.

9.1 METHODS OF COLLECTING DISSATISFACTION AND COMPLAINTS

(i) The report of local RO, which includes complaints of the masses, the progress of resettlement, working measures and existing problems

(ii) The construction log faxed to the Owner by the construction organizer, which shows whether and how the masses affect the construction

(iii) The site inspection of the IA, during which the problems relating to the LAR may be found.

(iv) Relevant information provided by the independent monitoring organization

(v) Letters and visits of the displaced persons

(vi) Information provided by the workstation of the Owner

(vii) Relevant problems found by auditor and discipline inspection departments

(viii) Information on payment of land compensation shown on the fund transfer list provided by the bank

(ix) Specific survey of internal monitoring agency

9.2 PROCEDURE OF COMPLAINING AND APPEALING

Phase 1

269. The displaced persons give their oral or written complaints to the village (community) committee or local RO. In case of oral complaint, the village (community) committee or local RO must keep a written record and give a clear reply within 2 weeks. If it is a big issue that shall be submitted to the superior RO, the village (community) committee or local RO shall try to get the comments of the superior RO within 2 weeks.

Phase 2

270. If the reply given in the Stage 1 fails in satisfying the complainer, the complainer may appeal to the district RO within 1 month after receiving the decision of Stage 1. The district RO shall make a decision on the appeal within 3 weeks.

Phase 3

271. If the complainer is dissatisfied with the replay of the district RO, he or she may appeal to the Tianshui Urban Investment Company within 4 weeks after receiving the reply of stage 2. The Project Resettlement Office will give its comment within 4 weeks. If there are no agreements, administrative arbitration can be implemented. APs can directly appeal to the court.


119

Phase 4

272. If the complainer is still dissatisfied with the reply of Phase 3, he or she may appeal to civil court within 15 days after receiving the reply.

9.3 PRINCIPLES OF HANDLING COMPLAINTS

273. The ROs at various levels must carry out site survey on the complaints of the masses, collect their opinions and negotiate with them patiently, in accordance with the principles and standards stipulated in the rules and regulations of the state and the RP, and give comments objectively and reasonably. The RO shall report those problems that cannot be handled on its own to the superior RO timely and assist the latter in carrying out relevant survey.

274. If the RO of the previous stage fails in giving a reply within the specified period to the complaint, the complainer has the right of appeal.

275. During the resettlement, some special complaints and appeals of women may appear; therefore the project office plans to hire at least 1 female employee for each resettlement team to deal with women’s complaints. The local governmental and non-governmental organizations, such as the Bureau of Civil Affairs and the Women's Association will supervise the resettlement to ensure the rights and interests of the displaced persons, especially that of affected women.

9.4 CONTENTS AND WAYS OF REPLYING TO COMPLAINTS

9.4.1 Replies to complaints

Brief description of the complaint

The result of survey

The principles and standards stipulated in the rules and regulations of the state and the RP

Comments on handling the complaint and its basis

9.4.2 Ways of replying complaints

As to the individual complaint, written reply shall be sent to the complainer directly.

As to the common complaint, the reply shall be announced in the village (community) meeting or shall be notified to the village or community in the form of formal document.

276. Whatever way of replying is adopted, the replay shall be sent to the corresponding RO of the complainer.

9.5 RECORDS OF COMPLAINTS AND APPEALS AND RELEVANT FEEDBACK

277. During the implementation of the RP, the TUCIC shall keep a record of complaints and the results of handling and submit a monthly written report to the TUCIC, which will carry out a regular inspection on the record of complaints handling.

278. To keep a complete record of the complaints of the displaced persons and the handling of relevant issues, the TUCIC has designed a record form for this purpose, shown as Table 9-1.


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Table 9-1 Record form of complaints and appeals on the resettlement

Acceptor: Time: Place:

Complainer Content Demanded solution Planned solution Actual handling

Complainer (Signature)

Recorder (signature)

Remarks: 1. The recorder shall register the actual complaint and demand of the complainer. 2. The complaining shall not be disturbed or hindered by any factor. 3. The planned solution shall be notified to the complainer in the specified period.

279. The main contents of this chapter will be publicized to the displaced persons and delivered to each affected household, public institution and business in the form of publicity material before the implementation of resettlement.

9.6 Contact Information for Complaints and Appeals

280. The ROs of the districts shall arrange the principals to collect and receive the complaints and appeals of the displaced persons. See Table 9-2 for their names, office addresses, and telephone numbers.

Table 9-2 Information of the organizations and persons for receiving the complaints and appeals of displaced persons

Resettlement Office of Districts or project departments

Contact person Address Telephone

TPMO Cui Xiaoping Tianshui Municipal Finance Bureau

0938-8211867

TUCIC Gao Qilong Dongsheng Building, 6th Floor, Qinzhou District

09388296669

The Department of Land Reserve, TUCIC Zhang Xiaoming Dongsheng Building, 6th Floor, Qinzhou District

0938-8296959

9.7 Budget for Complaints and Appeals Management

281. The cost for managing complains and appeals during the component implementation is included into the administration budget of the resettlement plan.


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X. RESETTLEMENT MONITORING

10.1 INTERNAL MONITORING

10.1.1 Purpose and principles

282. The internal monitoring indicates the continuous internal monitoring on the implementation of the RP carried out by the Owner and the ROs throughout the management system. It aims at obtaining the accurate progress of resettlement timely and integrally, finding and solving problems and providing the basis of decision-making for the smooth implementation of resettlement.

283. The purpose of internal monitoring provides a criteria and guidance for the internal monitoring of resettlement carried out by the project Owner, the executive agencies of resettlement and the organizations relating to the resettlement to ensure that the implementation of resettlement complies with the RP and the resettlement M&E are carried out orderly, normally and efficiently, therefore the relevant organizations may get to know the implementation of the resettlement timely and the problems occurred may be found and eliminated early.

284. The principles of internal monitoring include: to update RP, establish and update resettlement database, to collect data and analyze information accurately to ensure the accuracy of the results of monitoring, to conduct scientific and objective evaluation on the implementation of the RP justly and to submit report to the project Owner and the ADB in semi-annually to keep them informed of the progress of the project and able to make scientific decision.

285. The function of internal monitoring: The internal monitoring is an important integral part of the internal management of the project; it directs to mastering the implementation of resettlement; through the establishment and use of resettlement information management system, the progress of the implementation of the resettlement and the data and information of the relevant funds and quality are collected, analyzed and shared and the existing and potential problems and the causes may be found and the measures and suggestions on solving the problems may be proposed.

286. The internal monitoring of the resettlement shall be conducted by the Owner and the ROs and the Owner shall submit the internal monitoring report to the ADB semi-annually.

10.1.2 Procedure of internal monitoring

287. The internal monitoring can be divided into two phases, namely, preparation phase and implementation phase. The preparation phase begins at project identification period, through project preparation, project pre-assessment and project assessment, finally ends at project approval period of the project cycle. The implementation phase begins at the implementation of the resettlement and ends at the achievement of the aim of resettlement.

1. Preparation stage of internal monitoring

288. The Owner and the local government shall establish the ROs at the early period of project preparation. The Owner shall establish an internal monitoring system for resettlement with capable personnel specialized in resettlement to ensure the provision of complete and objective information and data, which also contributes to the involvement of the organizations of other fields. The internal M&E of the resettlement shall be arranged in the project preparation period.


122

289. Preparations of the Owner include:

To organize the trainings on the resettlement policy of the ADB and relevant experiences, national resettlement policy, the design of the RP, resettlement implementation and the M&E of resettlement for the staff of the Owner and the ROs;

To invite professional agency and professionals who will assist in the design of the RP as early as possible; to organize socioeconomic survey; to design the RP with the help of the professional agency and professionals;

To establish resettlement information management system with the help of the professional agency and professionals.

Preparations of the resettlement agency include:

To sign the detailed resettlement implementation contract with the Owner;

To establish the ROs at various levels and arrange necessary personnel for them;

To organize resettlement staff trainings; to carry out socioeconomic survey and the design of the RP together with the Owner and the professional agency it invited;

To establish the resettlement information management system.

2. Implementation stage of internal monitoring

290. During the implementation stage, the district RO shall submit the information on resettlement implementation and up-to-date record of relevant activities to the RO to ensure the follow-up monitoring of the resettlement. The RO will carry out regular inspection on the ROs at town (street) level and village (community) level and verify the progress of resettlement reported by them.

291. During the implementation stage of the internal monitoring, the Owner shall,

In accordance with the RP, preside over the internal monitoring of the resettlement;

Submit a detailed internal monitoring report to the ADB every half a year;

Update the statistics of the resettlement implementation in time and complete the resettlement information management system.

10.1.3 Contents of internal monitoring

292. Generally, the internal monitoring shall include the followings:

Organization: The establishment and assignment of resettlement IA and relevant organizations and their personnel assignment and capability development;

Resettlement policy and compensation rate: The design and implementation of resettlement policy; the actual implementation of compensation rates of various losses caused by the resettlement (permanent land acquisition, temporary land occupation, house relocation, store relocation, the relocation of public institution and enterprise and the relocation of specific facility) and specific identification of whether the rates in the RP is implemented and the causes of any changes occurred;

Progress of relocation and resettlement: The general schedule and the yearly schedule, the progress of personnel assignment of the resettlement agency, the progress of land acquisition and temporary occupation, the progress of adjustment, acquisition (or transfer) and assignment of the land of resettlement area (including land for production, residential building and public facility), the progress of house


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relocation, the progress of the construction of resettlement house, the progress of the moving of displaced persons, the progress of production development project, the progress of the construction of public facility, the progress of the recovery, removal and reconstruction of specific facilities, the progress of the removal and reconstruction of industrial and mineral enterprises and public institutions, the progress of the employment-related action and the progress of other resettlement activities. The sample form of the internal monitoring report on the progress of LAR is shown as Table 10-1;

Resettlement budget and implementation: The amount and time of payment of resettlement fund to various levels, the use and management of resettlement fund of ROs at various levels, the amount and time of payment of compensation fund to the proprietor of affected property (house) and the proprietor (village and group) and the user of affected land, the use and management of compensation fund of the collective land at village level, the supervision and audit of the use of fund. The sample form of the internal monitoring report on the progress of the use of compensation fund is shown as Table 10-2;

Production and employment resettlement of displaced persons: The main measures for the resettlement of rural displace persons, the number of persons, the employment resettlement of the staff of displaced enterprises, the resettlement of vulnerable groups (household of women, household of old persons and the disabled), the recovery of the land occupied temporarily and the effect of resettlement;

Reconstruction of displaced houses and living resettlement: the means and areas of the resettlement of rural displaced persons, the way of house reconstruction, the three accesses and one leveling of the residential area, the payment of compensation fund, the relocation of the matching public facilities (water supply, power supply, road and business area);

The reconstruction of the enterprises and public institutions and various specific facilities (power supply, water supply, communication, traffic and pipelines);

Complaint, appeal, public involvement, negotiation, information publicity and independent monitoring: The channel, procedure and responsible organization of complaining and appealing, the main complaints and appeals and their handling, main content and means of public involvement and negotiation, the effect of public involvement and negotiation, resettlement information brochure and information publicity, the activities and effect of independent monitoring organization;

Handling of the relevant issues stated in the inspection memorandum of the ADB;

Existing problems and solutions.

10.1.4 Methods of internal monitoring

293. The internal monitoring, as the from top to bottom monitoring on the implementation of the resettlement within the resettlement system, shall establish standard, smooth, from top to bottom resettlement information management system among the Owner and ROs at various levels and follow up the progress of resettlement in various districts. The ROs at various levels shall report the progress of resettlement and the information about the compensation fund and the effect of resettlement from the bottom to top analyze and handle relevant issues through the information management system.


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294. The RO of the TUCIC has established a complete information management system, which can save and manage various data and information relating to the implementation of project comprehensively, timely and accurately.

295. The following methods of internal monitoring may be adopted for this project in accordance with the implementation status of the project:

1. Standard report forms

296. The Owner shall, in accordance with the requirements of resettlement implementation, design uniform report forms, which show the progress of appropriation of resettlement fund and the progress of LAR. The report forms shall be submitted at every end of month from lower level to superior level, through which the Owner can master the progress of the project.

2. Regular and irregular communication

297. The ROs at all levels shall discuss the problems occurred in the resettlement and communicate relevant information and propose their comments on handling these problems by a variety of means.

3. Regular coordination meeting

298. At the beginning of every month, the resettlement division of the TUCIC will convene resettlement coordination meeting and the staff of district RO shall report the progress of the implementation and existing problems, communicate the working experience and seek for the solution of the problems.

4. Inspection

299. The resettlement division of the TUCIC will carry out routine inspection and specific inspection on the ROs of lower levels and field survey, handle resettlement problems on site and verify the progress of the resettlement and the implementation of resettlement policy.

5. Information communication with independent monitoring organization

300. The Owner and the local ROs shall keep in touch with the independent monitoring organization and take their findings and comments as the basis of internal monitoring.

6. Resettlement MIS

301. The RO of the TUCIC will create a resettlement MIS for the project to store all relevant information. The data and information of the resettlement MIS will be updated during the RP implementation to ensure effective supervision on the resettlement.


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Table 10-1 Land acquisition and resettlement progress

Organization:________________________________

Date: ________/____/______ (Y/M/D)

Resettlement activity Unit Planned amount

Completed amount

Accumulated completed

amount %

Permanent land acquisition mu

Temporary land occupation mu

House relocation m2

Including: Private house m2

Store m2

Premise of enterprise and public institution

m2

Land compensation Ten thousand CNY

Payment of house relocation fee

Ten thousand CNY

Reconstruction of residential house

m2

Reconstruction of store m2

Reconstruction of premise of enterprise and public institution

m2

Filled by: Signature of Person in Charge: Seal:


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Table 10-2 Progress of using the compensation fund

_____ District_____ Town (Street) ______ Village (Community)

Date /____/___ (Y/ M/ D)

Affected organization Brief

description

Qty (organiz

ation)

Amount required

(CNY)

Compensation acquired in

the report period (CNY)

Accumulated acquired

Compensation (CNY)

%

Village(Community)1

Village collective

Household

Village(Community)2

Village collective

Household

Store

Enterprise and public institution

Public facility

Filled by: Signature of Person in Charge: Seal:

10.1.5 Internal monitoring agency and personnel assignment

302. The personnel of resettlement agency relating to internal monitoring are shown in Table 10-3.

Table 10-3 Personnel of internal monitoring in resettlement agency

Resettlement agency Number of standing

personnel Number of personnel in peak

period

Resettlement office of the Tianshui Urban Investment Company

2 3

Resettlement office of TXDC 3 4

Village committee (community) 1 3

10.1.6 Responsibility of internal monitoring agency

Establish office, train the workers to survey impacted areas;

Invite independent monitoring agency;

In the beginning, instruct the survey of the investigation agency;

Train the workers of subcomponent RO;


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Supervise and check the consistence between resettlement policies and the RP;

Supervise the information of APs and prepare resettlement handbooks.

303. For the problems discovered in internal monitoring, the RO of Tianshui Urban Investment Company will provide timely improvement measures.

10.1.7 Cycle of internal monitoring and reporting

304. The internal monitoring is a continuous process and its overall monitoring activity shall be carried out at least once a quarter and its frequency will be increased during the key period of the relocation of the displaced persons.

305. During the preparation period of the project, the internal monitoring agency will make regular and irregular report, combining with the inspection of the ADB. The format of the report will be determined in accordance with the requirements of ADB and different projects and stages. After the implementation begins, the district RO is required to make brief monthly report and detailed quarterly, half-yearly and yearly report for major changes and progress of subprojects and make brief quarterly report and detailed half-yearly and yearly report for minor changes and progress of subprojects. Specific report shall be made according to the requirement of project management. After the implementation of the project, a final report shall be made. The internal monitoring report shall be submitted to the TMG at the same level, the RO at superior level and the Owner by the ROs at various levels. And the Owner shall submit an internal monitoring report to ADB every half a year.

10.2 External Monitoring

306. In accordance with the relevant requirements of ADB, an external agency will committed to undertake the external monitoring of the resettlement of the Project upon the comparison of the resettlement division of the TUCIC and it will monitor and evaluate the resettlement and recovery activities to ensure the resettlement is implemented in conformity to the RP.

10.2.1 Purpose of external monitoring

307. In the external M&E, the resettlement evaluation shall be made by the organization independent of the governmental department. Its purpose is to inspect the implementation of the RP from a broad and long-term view, to monitor and evaluate whether the aims of land acquisition, resettlement and relocation are reached, to propose comments and suggestions and to take remedial measures and follow up their implementation and effects to ensure the result of the resettlement.

308. The external monitoring shall follow up the LAR to monitor and evaluate the followings:

Whether the relevant rules and regulation of the state are observed in the resettlement;

Whether relevant policies on involuntary resettlement of ADB are observed in the resettlement;

Whether the living conditions of the affected population is improved or recovered.

10.2.2 External monitoring organization and monitoring personnel


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309. To carry out the external monitoring of this project successfully, an independent agency will be recruited by the TPMO. The following factors have been taken into consideration for the selection of team members for resettlement monitoring.

The independent monitoring personnel shall have the experience of similar work and abundant experience in socioeconomic survey; understand the involuntary resettlement policies of ADB, master relevant rules and laws of the state and local government on the resettlement.

They shall be industrious and capable of carrying out social survey and research independently and have communication ability.

Some female staff shall be assigned according to a certain proportion.

10.2.3 Assignments of the external monitoring organization

310. The external monitoring organization shall undertake the followings:

Before the resettlement, the living standard baseline survey shall be carried out to master the basic living and production conditions of the displaced persons.

In the process of the resettlement, the external monitoring organization shall follow up and monitor the implementation of the resettlement, collect the comments and complaints of the displaced persons and report them to the resettlement division of the TUCIC and local RO timely. And the external monitoring organization shall submit monitoring report to the resettlement division of the TUCIC and ADB.

The external monitoring organization shall investigate the living and production conditions of the displaced persons all the time and evaluate the resettlement activities and relevant measures.

Upon survey, research and discussion with the displaced persons, the external monitoring organization shall propose constructive comments to the resettlement division of the RO of the TUCIC and local RO to ensure the smooth implementation of the resettlement and fast recovery of the living and production conditions of the displaced persons.

10.2.4 Means and procedures of external monitoring

311. The external monitoring organization will adopt the following means to carry out the monitoring of resettlement.

(i) On the basis of the detail survey and measure, the external monitoring organization will set up a database for the displaced persons and carry out door-to-door interview constantly. The external monitoring organization will fully make use of the information acquired through socioeconomic survey and the resettlement information management system of the project management office, carry out dynamic management on the basic conditions of the displaced households, and get to know the relevant information of the displaced persons all the time. According to the information shown in the database, the monitoring personnel will visit the displaced persons, get to know the progress of the resettlement, collect their complaints and suggestions, and inform them relevant policies of the state, relevant requirements of ADB and the information on the construction of the project.

(ii) After the acquisition of the name list of the displaced persons and relevant information from basic institution, the external monitoring organization shall carry out door-to-door


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interview independently, not accompanied by the staff of the local RO or local administrative personnel. The visiting persons shall be relatively stable, which means a monitoring member shall try to visit the same affected area from time to time, which is beneficial for the establishment of the trust between the monitoring member and the displaced persons and the efficiency of the visits.

(iii) The external monitoring organization shall convene meetings irregularly in the area with a large population to collect the comments on the importation issues relating to the project of the displaced persons. The meeting may be formal or informal. And the staff of the local RO may be or may not be invited to the meeting, which depends on the actual situation.

(iv) Field survey. The staff of the external monitoring organization shall visit the resettlement area regularly and irregularly and observe the resettlement on site.

(v) Survey on individual case. The monitoring personnel shall put emphasis on the special case occurred in the resettlement, analyze the causes of the problems, work out solutions and propose suggestions.

(vi) Questionnaire. The monitoring staff shall carry out sampling survey on the recovery of the living and production conditions of the displaced persons and the comments on the resettlement and analyze the result in time to solve the existing problems. And the resettlement work of the next year may be carried out with reference to the results of the survey and the solutions of the problems occurred.

10.2.5 Contents of independent monitoring

(i) Resettlement monitoring of the affected enterprises and public institutions

312. The independent monitoring organization shall follow up the resettlement of the enterprises and public institutions through phone call and the study on individual case. The followings will be most concerned about:

Whether the time of land acquisition and the resettlement is arranged reasonably;

Whether the losses of the affected enterprises are compensated;

Whether the staff of the enterprises are resettled properly;

Whether the production of the enterprises is resumed in time; and

Whether the affected enterprise transfer their loss to their staff.

(ii) The resettlement of displaced persons

313. Many urban and rural residential houses are involved in this project. The resettlement of displaced persons is the emphasis of the independent monitoring. As to these displaced persons, the followings are the main concerns of the independent monitoring organization:

Whether the compensation rates of houses and other attachments to the ground are determined in accordance with the replacement cost principle;

Whether the compensation is paid with full amount and in time;

Construction and distribution of relocation houses;

Whether the time of relocation is arranged reasonably;

Whether the transition allowances and moving cost are paid;


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Whether the physical losses are fully compensated;

Whether the infrastructure (including water, power and heat supply and roads) of the new resettlement area is completed and who is responsible for it; and

Whether it is convenient to go to hospital and school from the new resettlement area.

(iii) Monitoring of land acquisition

314. In accordance with the features of the land acquisition of this project, the external monitoring on the land acquisition and production resettlement shall be focused on the followings:

Whether the compensation rates of various lands are determined in accordance with relevant laws of the state;

Whether the transfer procedure of land compensation fund can ensure the affected village and group to acquire their deserved amount;

Whether the amount of land acquired, compensation rate, compensation amount are publicized in the village and by which means they are publicized;

Whether a definite and feasible plan is made for the collective use of land compensation;

Whether the plan of the use of land compensation is designed after the collection of the comments of related villagers and how the use plan is finally determined; and

How the benefit brought by land compensation is distributed and how the actual economic benefit of the displaced persons is guaranteed.

(iv) Monitoring of ROs

315. Capable, specialized and efficient ROs may assure the success of resettlement. The monitoring on the operation of ROs is an important part of independent monitoring. The means of monitoring are mainly visits to the ROs and the inspection on the working data and record. The main content of monitoring on ROs includes:

Whether the personnel structure of the ROs at various levels meets the requirements of the resettlement;

Whether necessary working conditions are provided for the ROs at various levels;

Whether the quality of resettlement personnel meets the requirements of the resettlement;

The resettlement staff training; and

The internal data and information management of the ROs.

(v) The resettlement of vulnerable groups

316. The vulnerable groups shall be given special attention not only by the ROs but also by the independent monitoring organization. The independent monitoring organization shall follow up and monitor the resettlement of vulnerable groups by means of door-to-door interview, questionnaire, individual case analysis and the main indicators of monitoring include:

Which preferential policies are enjoyed by vulnerable groups in the resettlement;

Whether the affected poor household in the urban area can afford a new house and have their living standards improved;


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Whether special requirements of affected women have been fully considered in the design of resettlement measures;

Whether vulnerable groups, especially women, can acquire employment opportunity relating to the project and how many vulnerable persons are employed in the construction of the project; and

Whether there is a female staff member in each RO to deal with the affairs of women.

(i) The living standard baseline survey of displaced persons

317. Before the formal commencement of the resettlement, the independent monitoring organization shall collect the basic information for the resettlement of the Project upon sampling survey. Structured questionnaires are adopted for the sampling survey. Cluster sampling shall be carried out, taking all the affected households involved in the socioeconomic survey at the preparation phase of the project as the sample bank. The sampling proportion for living standard baseline survey is determined to be 10 -20%.

318. The living standard baseline survey of the affected households covers: family structure, production conditions, gross floor area of the houses, annual income of the household, employment structure, annual expenditure of the household, traffic conditions, water supply, power supply and heat supply conditions, living environment, subjective appraisal of production and living conditions.

(ii) The effect of resettlement

319. After the implementation of the resettlement, the external monitoring organization will follow up and monitor the effect of the resettlement continuously.

320. The external monitoring organization will investigate the affected households half a year after the resettlement. The follow-up survey is similar to the living standard baseline survey of the affected households, adopting sampling survey by means of structured questionnaires, to show the impact of resettlement on the production and living of the persons investigated. And the effect of resettlement shall be evaluated on the basis of the follow-up survey.

321. The principle of the selection of samples of the follow-up survey is the same as that of living standard baseline survey. The external monitoring organization shall try to investigate the objects of living standard baseline survey. After the living standard baseline survey, the independent monitoring personnel shall establish the database of the samples of the survey, which will be the basis of the follow-up survey. As to the survey objects that it is hard to investigate again due to various reasons, they shall be replaced by similar affected households in the same community after referring to the information bank established upon the earlier socioeconomic survey.

322. The contents of the follow-up survey shall be consistent with those of living standard baseline survey, so as to carry out comparison analysis of the production and living conditions of the affected households before and after the resettlement. Meanwhile, the subjective comments on the resettlement of the displaced persons shall be collected and they will be referred to in the evaluation of the effect of the resettlement.

10.2.6 Reporting system for independent monitoring

323. The external monitoring organization shall make external monitoring report in written form based on the information acquired through observation and survey. The two purposes of reporting: one is to report the progress of the resettlement and existing problems objectively to the TPMO and the Owner and the other is to evaluate the social and economic effects of the


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resettlement, propose constructive comments and suggestions to improve and perfect the resettlement.

324. The external monitoring organization shall submit reports to the TPMO and the Owner and the periods of reporting are confirmed as follows:

Conduct a survey on the AP’s living standards and situation and submit a resettlement baseline report to the TPMO and the Owner at the very beginning of resettlement implementation;

Submit progress report every six months in February 28th and August 31st, respectively; and

Submit a resettlement completion report to the TPMO and the Owner after completion of resettlement of all subprojects.

325. A monitoring report shall at least include the followings: (i) monitoring objects; (ii) the progress of the resettlement; (iii) main findings of the independent monitoring organization; (iv) main existing problems; and (v) basic appraisal, comments and suggestions of independent monitoring organization.

326. The external monitoring organization shall submit the report both in English and in Chinese to the TPMO and ADB. Before submitting, the external monitoring organization shall inform relevant personnel of the RO of the contents of the report and collect their comments and they shall communicate with each other on the contents and the form of the report.


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APPENDIX I RESETTLEMENT INFORMATION BOOKLET

The ADB Financed Wuhan Environmental Improvement Project Resettlement Information Booklet

Respected：_________

Asian Development Bank (ADB) Financed Tianshui Urban Development Project (Component) will cover the place your family/working unit is located in, and this booklet is hereby issued in order to let you understand the general situation of the project, relevant land relocation policy of the country and affected family/working unit.

I. General situation of the project

The Road and Bridge Component of the Gansu Tianshui Urban Infrastructure Development Project mainly includes: Chengji Road & Floor Control Component, Shuangqiao Xi River Bridge Subproject, Qinzhou Chiyu Road Subproject, Shetang Wei River Bridge (Southern part) Subproject and Maiji New Road Network Subproject. The project plans to start from June 2012 and expect to be completed in June 2015.

II. Laws and regulations and compensation rates in regard to land acquisition

(1) Major laws and regulations

The Law of Land Administration of the PRC

Regulations on the Implementation of the Land Administration Law of the PRC

Real Right Law of the PRC

The Suggestions of Gansu Provincial People’s Government on Deepening Reform and Tightening Land Management

Method of Land Acquisition for Large Infrastructure Projects in Gansu

ADB Safeguard Policy Statement

(2) Compensation policies on LAR for this component

Table 1 Land Acquisition Policy

Category Compensation rate

I. Land acquisition compensation

Young crop and ground attachments on collectively-owned land are compensated to the proprietor according to actual loss. Collective land policy standards are referred to the implementation of comprehensive land prices in different regions. The cultivated land in Qinzhou District is CNY 73,440-86,400 per mu. Land contractors get the land for CNY 44,064~51,840 per mu, and the rest land is used for the public projects. The cultivated land in Maiji District is CNY 76,320 per mu. Land contractors get the land for CNY 45,792 per mu, and the rest land is used for the public project. The village should get two-thirds of villagers’ agreement if it uses the compensation for land acquisition.

II. House compensation

Compensation standards for residential real estate are in accordance with the monetary compensation where the market price is based on the assessment


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issued by rating agencies a with the professional qualifications. The resettlement of the relocated residents is arranged in two ways of monetary compensation and property rights exchange.

Table 2 Land Compensation Standards

Name No. Area Comprehensive

Land Price

Land Contract

Price

Village Committee

CNY/mu CNY/mu CNY/mu

Qinzhou B

Yanjiahe, Wancun,

Zaoyuanzhuang, Xianjialu

86400 51840 34560

D Yanxin,

Xituanzhuang, Xishili

73440 44064 29376

Maiji C

Xiaojiazhuang, Yangpo,

Shuiyanzhai, Jinzhuang, Wuzhuang,

Xiakou, Dengzhuang

76320 45792 30528

Table 3 House Compensation Standards

A-level B-level C-level

Houses Brick and concrete

（CNY/m2） 1500 1400 1300

Brick and

wood （CNY/m2） 1100 1000 900

Brick, earth and wood

（CNY /m2） 800 700 600

Earth and

wood （CNY /m2） 360 300 240

Transition 360

Self-employed households

Business suspension

CNY /HH 1500-6000

Houses turned into

shops

Business suspension

CNY /HH 800-1200

Temporary houses

（CNY/m2） 200-300

Chiyu road Evaluation method is

formulated.

These compensation standards are formulated on the basis of survey and investigation and in accordance with the laws and regulations of the PRC as well as the operational policy of involuntary resettlement by ADB, in order to restore and improve the standards of living of affected population after resettlement as soon as possible.


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III. Predicted implementation time

Item Time

Land acquisition and relocation announcement 2010.01

Compensation payment 2012.05

Land acquisition and relocation 2012.05 – 2013.6

Moving into new houses Before 2014.06

Project construction 2012.06– 2015.06

IV. Rights and obligations of affected population

(1) Rights of affected population

They should obtain compensations completely according to the above compensation rates and may reflect their ideas and suggestions to the ROs of villagers’ committees/communities, towns/streets, districts and the city. Detailed contents are: Base compensation, compensation rates, time for paying compensation, location for building reconstruction, and so on. Each RO must give its response within 15 days after receiving the complaints of displaced persons or those reported by lower level of RO.

(2) Obligations of affected population

They should actively cooperate with project construction.

New buildings should not be set up within the range of survey after it is conducted, or there will be no compensation.

They should demolish the buildings within the range of land for transportation.

(3) Grievance Mechanism

A grievance procedure has been established for the APs to redress their LAR issues, including four channels: (i) RCs or local resettlement offices (ROs), (ii) ROs of subprojects; (iii) TPMO; and (iv) taking legal action to the people’s court. APs can directly appeal to the court.

V. Assistance to vulnerable households

Vulnerable households will be given the following assistance:

Financial assistance. In the process of relocation, villages/communities should offer some subsidiaries to them.

Assistance in labor service. Villages/communities give assistance to labor force responsible for relocation.

Vulnerable households should have priority to select locations for building reconstruction and reallocated farmland.

VI. Land acquisition and relocation agencies

Municipal agency


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Resettlement Office of the TUCIC

Address: 6th Floor Dongsheng Building, Qinzhou District, Tianshui City

Postcode: 741000

Tel：0938-8296959

Independent External Monitoring Agency: The School of Economics and Management, Tongji University

Address: No.1239, Siping Road, Shanghai City

Tel: 021-65081954

VII. Right to interpret the booklet

The right to interpret the booklet belongs to the Tianshui Management Office for Foreign Fund Financed Urban Construction Project.

Thank you for your support to this Project!

Tianshui Project Management Office

December 2012


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APPENDIX II Due Diligence Report on LAR of Maiji District New Road Network and

Shetang Wei River Bridge

GANSU TIANSHUI URBAN INFRASTRUCTURE DEVEPLOPMENT PROJECT

(ADB TA7344-PRC)

Due Diligence Report

On

Land Acquisition and Resettlement

Of

Maiji District New Road Network

and

Shetang Wei River Bridge

October 2010


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I. INTRODUCTION

1. The Gansu Tianshui Urban Infrastructure Development Project (ADB TA7344-PRC) (Project) includes four (4) components including: A. Qinzhou District Heating Network; B. Chengji Road & Flood Control; C. Tianshui Urban Road Improvement; and D. Capacity Development & Institutional Strengthening.

2. The Road and Bridge Component of the Project consists of Components B and C, including subprojects of (i) Chengji Road & Flood Control; (ii) Maiji District New Road Network; (iii) Shetang Wei River Bridge; (iv) Shuangqiao Xi River Bridge; and (v) Qinzhou Chiyu Road.

3. Lands to be used for subprojects of Maiji District New Road Network and Shetang Wei River Bridge, and relevant resettlement were implemented from 2007 to 2009. According to ADB’s requirement, the TPMO conducted survey and due diligence related to land acquisition, structure demolition, resettlement, compensation and restoration of the two subprojects, and prepared this due diligence report.

II. DUE DILIGENCE ON MAIJI DISTRICT NEW ROAD NETWORK SUBPROJECT

2.1 Backgrounds of the Project

4. Tianshui, located in the border area of Shaanxi, Gansu and Sichuan provinces, is between Xi’an and Lanzhou City, and crossed by Longhai Railway. National roads 310 and 316 stretch from east to west and five provincial roads extend from south to north. It is also the eastern starting point of the economic belt along Longhai railway, as well as the economic, cultural and logistics center in Long Southeast Area.

5. The economy of Tianshui developed early. Traditional industries, such as carved lacquerware, textile, flour industry, began to develop at the beginning of the last century and quickly progressed after the founding of new China. During the national construction period, some businesses were moved to Tianshui so that it gradually became an important industrial city in northwestern area and one of the old industrial bases. Tianshui has good potential for development, because its industrial structure emphasizing on manufacture forms strong complementarily with Gansu’s industrial structure, which emphasizes on resources and raw materials. With a long history, Tianshui is a birthplace of Chinese civilization and a national historical and cultural city. Due to its numerous scenic spots, centralized layout and high cultural taste, Tianshui has a unique advantage for tourism development. In addition, suitable soil and climate make Tianshui one of the most appropriate areas for crop growth in northwest China, as well as one of the best fruit and vegetable bases in north China. Fruits and vegetables, such as apples, pears, peaches, walnuts, Chinese prickly ash, chili, and fragrant-flowered garlic and so on, enjoy a good reputation at home and aboard market because of the large yield and high quality.

2.2 Road Network Engineering of Maiji Newtown

6. Maiji Newtown lies on the southern bank of Wei River in Tianshui city. It covers 7.42 square kilometers approximately, and borders with Mourinhe’s beach to the east, Mapao Spring to the south, Jianxin Road to the west, and Wei River to the north. There are 41 city roads planned to be built, with a total length of 51.91km. The road network in Maiji Newtown will improve the condition of regional transportation, create necessary conditions for investment, promote road development and land utilization around, and accelerate urban infrastructure constructions, like


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municipal pipeline, electric power, and telecommunications, and boost regional economic and social development.

2.3 Impact of the project

7. In December 2006, the people’s government of Gansu province gave an official reply on the agricultural land transformation and land acquisition, which included the construction land in Maiji Newtown. The project impacted two suburb villages; where the tertiary industry is more developed and agricultural income accounts for about 30% of the total income. The detailed information is shown in Table 1.

8. This project totally acquired 1,588.84 mus of rural collectively-owned land, including 1,264.47 mus of agricultural land and 324.37 mus of construction land. The detailed information is shown in Table 2.

9. The project totally influenced 5,686 people (1,269 households), including 484 ethnic minorities (Hui people, 108 households). Due to land acquisition, the project influenced 4,452 people (898 households), including 313 ethnic minorities (73 households). The cultivated land acquired in two villages accounts for 44.2% and 59.7% of the total land respectively. The detailed information is shown in Table 3.

Table 1 per capita income of the affected villages

(Unit: CNY per capita)

Year Mapaoquan Village Huwang Village

2007 2,680 2,542

2008 3,054 3,002

2009 3,200 3,300

Table 2 rural land influenced by the project (Unit: mu)

Village Agricultural Land Construction Land Subtotal

Mapaoquan 499.90 123.87 623.77

Huwang 764.57 200.50 965.07

Total 1264.47 324.37 1,588.84

Table 3 Impact of the project

Village

Original Character Land Acquisition Impact

Population Household Minority Total Land Population Household Minority Acquired Land

Percent

Mapaoquan 2,536 602 105 838 2,000 400 70 499.9 59.7

Huwang 3,150 667 3 1,729 2,452 498 3 7,64.57 44.2

Total 5,686 1,269 108 2,567 4,452 898 73 1,264.5 49.3

10. The project required 1,260.11 square meters of house demolition and affected 36 persons


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and 8 households which are all Hans. The affected houses are shown in Table 4.

Table 4 Affected Houses

Village Household Population Area (m2)

Group Three of Huwang 8 36 1,600

Water Plant 1 0 800

Total 9 36 2,400

2.4 Compensation for the Land Acquisition

11. People’s Government of Maiji District of Tianshui signed land acquisition agreement with Tianshui Land Reserve Center. The area of acquired land was determined by Tianshui Land Survey and Design Institute. Land acquisition was divided into two phases. In the first phase, an amount of 500 mu land was acquired and given to Tianshui Land Reserve Center in March 2008.In the second phase, the remained land was acquired and given to Tianshui Land Reserve Center in September 2008.The price of the acquired land was CNY 90,000 per mu, which contains the compensation for land ownership (CNY 75,000 per mu) and management fees (CNY 15,000 per mu). Additionally, Tianshui Land Reserve Center would give the incentive fees (CNY 5,000 per mu) because land acquisition was completed on schedule. According to relevant policies and regulations, the management fees are used for daily operation cost due to increased resettlement business of involved land acquisition and resettlement management departments or local governments (Tianshui and Maiji land resource administration bureaus and relevant towns/street management offices) including labors, office, equipment, transportation expenses, etc.

12. Tianshui Land Reserve Center pays land compensation fees to People’s Government of Maiji District, who sets up an exclusive financial account for the project and should appropriate the fees timely and fully to the affected villagers.

13. The project requires 1,260 square meters of house demolition and the standards of the housing demolition compensation are as follows: CNY 760 per square meter for brick-concrete structure; CNY 500 per square meter for half-timber structure.

14. The compensation for land acquisition adds up to CNY 152,834,000. According to the agreement, Tianshui Land Reserve Center paid land compensation fees to People’s Government of Maiji District, who distributed land compensation fees and house demolition compensation fees to the affected villagers. The detailed information is shown in Table 5.

Table 5 Land Acquisition Fees and the Housing Compensation

Item Unit Quantity Criterion Money

mu yuan/mu CNY

Land Acquisition

Mapaoquan village 623.77 75,000 46,782,900

Huwang village 965.072 75,000 72,380,400

Subtotal 1,588.84 119,163,300

Management Fees 1,588.84 15,000 23,832,700

Work Fund

Mapao town 300,000

Maiji Land and Resources Bureau

200,000

Incentive Fees 1,588.84 5,000 7,944,200

Houses Resident 1,600 Consolidated price 994,000


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Item Unit Quantity Criterion Money

Huwang Water Plant 800 Consolidated price 400,000

Subtotal 1,394,000

Total 152,834,100

2.5 Employment Plan for Villagers

15. Interviewee: Zhang Baoping, amanuensis of Huwang Village

Date: January 25, 2010

16. Huwang village has a population of 3150 persons that are divided into 8 groups and 1279 mu of cultivated land in total. The land acquisition started in 2006 and has reached to 764.57 mu so far, including the whole land of 1-6 groups. The price of the acquired land is CNY 75,000 per mu, without taking the class of land into consideration. Huwang village got all compensation fees at the end of 2008 and then gave them out to the villagers in the form of bankbook. The amount of the acquired land and compensation fees were confirmed and accepted by the affected villagers.

17. The compensation for land acquisition is at the affected villagers’ disposal. The families that have a low average family income can receive the monthly basic cost of living allowance (CNY 50 per person). The village has more than 700 migrant workers and has 3 enterprises, one of which is a brick plant that employs more than 100 workers and has an annual output value of 250 million. Each worker earns CNY 800 to CNY 1200 monthly. Additionally, the town has an industrial park that consists of more than 50 enterprises and attracts employment of villagers. In brief, the majority of the affected villagers obtained employment and got steady incomes.

18. The affected ethnic minorities enjoy the same right of compensation and their customs are respected.

2.6 Income Restoration

19. According to the survey, each local villager earns a yearly net income of CNY 1,000 due to the output of the cultivated land. At present, the affected villagers get CNY 75,000 per mu as the compensation for land acquisition. If we use 2.25% as ARP(annual percentage rate), the interest will be CNY 1687,namely,the interest that comes from saving the land compensation fees into the bank is more than the income that comes from the output of the cultivated land. After getting compensation fees and considering their labor skills, the affected villagers should decide their ways of employment, such as doing business or transportation, finding jobs outward and so on. What’s more, the villagers who get stuck in life can get the monthly basic cost of living allowance(CNY 50 per person).As is shown in the survey, the affected villagers have restored the living and working standards. Among these people, 90% have found the jobs, and 10% have got the living subsidy.

20. The labor force structure is as: (i) working outside. Such people accounted for about 30% of total young and middle-aged labors. (ii) Transportation business. People working in this sector accounted for about 10% of the total labor force. (iii) operating shops and stores. Such people accounted for about 10% of the total. (iv) private workshop processing. Such people accounted for about 10% of the total. (v) catering services. Such people accounted for about 5% of the total. (vi) working at township enterprises. Such people accounted for about 5% of the total. And (vii) pure agriculture. The constitution of income per capita of the farmers is provided in Table 6.


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Table 6 Constitution of Income per Capita of Farmers

Item CNY/person Percentage (%)

Agricultural income 728 22.1

Income from working 906 27.5

Income from renting houses 434 13.2

Income from private workshop processing 21 0.6

Income from private business 223 6.8

Benefits from the collective economy 367 11.1

Other incomes 621 18.8

Total 3,300 100.0

2.7 Relocation and Compensation for the Affected People

21. The area of the relocated houses is 2,400 square meters. The affected villagers received CNY 1,394,000 housing compensation totally. After getting the compensation, 7 households rebuilt their houses and have moved in, and 1 household purchased the commercial residential housing in Tianshui city. The standards of the housing demolition compensation are as follows: CNY 760 per square meter for brick-concrete structure; CNY 500 per square meter for half-timber structure.

22. The Huwang Water Plant has been rebuilt in the new site.

23. According to the survey, the affected villagers have solved the housing problem.


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III. DUE DILIGENCE ON SHETANG WEI RIVER BRIDGE SUBPROJECT

3.1 Construction of Shetang Wei River Bridge

24. According to the plan, the project starts from National Road 310 and ends in No.1 road, crossing Wei River, with No.7 and No.5 roads on its banks respectively. The construction of

Shetang Wei River Bridge is divided into two parts：the approach bridge with a length of 1.76km

and the main bridge with a length of 331 meters. It will enhance the relationship of the IDZ(industrial developing zone)in northern bank, National Road 310 in southern bank and Tianshui downtown, exert the whole function of road network, provide convenience for transportation and create necessary conditions for attracting investments, becoming a manufacturing base and promoting economic development.

25. After crossing the Wei River, the original design is the bridge will cross the Binhe Road. The revised design is to over pass the Binhe Road and will need more land, which are existing road land and thus will not induce new LAR issues.

3.2 Land Acquisition

26. Since November 2009, the project began to acquire land in Mapao Spring village, which has a population of 1,654 persons (706 households) and 2,300 mus of cultivated land. The acquired land is 31 mus, accounting for 1.34% of the total cultivated land. The compensation for land acquisition was given to the affected villagers in December 28, 2009. Land acquisition directly influenced 72 persons (17 households).Now the affected villagers can not only continue to use the cultivated land, but also earn CNY 70 per person everyday by working for others. The income per capital of Panjizhai is provided in Table 7.

27. As is shown in the survey, the affected villagers have restored the living and working standards with reliable incomes as shown in Table 7.

28. There is no house demolition in the area that the construction of Shetang Wei River Bridge covers.

Table 7 Constitution of Income per Capita of of Panjizhai

Item CNY Percentage (%)

Agricultural income 900 23.8

Income from working 1,200 31.7

Income from renting houses 434 11.5

Income from private workshop processing 40 1.1

Income from private business 223 5.9

Benefits from the collective economy 367 9.7

Other incomes 621 16.4

Total 3,785 100.0

IV. CONCLUSIONS

4.1 Construction of Maiji District New Road Network


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29. People’s government of Gansu province gave an official reply on land acquisition in Maiji Newtown. The land acquisition accords with the laws of the PRC.

30. People’s Government of Maiji District signed land acquisition agreement with Tianshui Land Reserve Center. According to the agreement, Tianshui Land Reserve Center paid land compensation fees to People’s Government of Maiji District.

31. People’s Government of Maiji District has made compensation to the affected villagers on the basis of the policy on land acquisition in Gansu. The Tianshui Urban Construction Investment Corporation has relevant documents including disbursement documents.

32. 90% of the affected villagers have steady jobs and stable incomes so that their living standards do not decrease.10% of them get minimum living subsidy and take part-time jobs.

33. The housing demolition compensation has been given to the 8 affected households and the water plant in Maiji District New Road Network subproject. The houses have been rebuilt.

34. The affected villagers who get stuck in life can get the monthly basic cost of living allowances (CNY 50 per person).

35. The affected ethnic minorities enjoy the same right of compensation and their customs are respected.

36. There is no remaining problem for land acquisition.

4.2 Construction of Shetang Wei River Bridge

37. People’s Government of Maiji District signed the land acquisition agreement with Panji village in Mapao and gave the total compensation for land acquisition in December 28, 2009.

38. The project impacted 1 village, 17 households (the partial land was acquired) and 72 persons.

39. After getting compensation, the affected villagers could continue to do agricultural work and earn CNY 70 per person everyday by working. Thus, their living standards were not affected by land acquisition.

40. There is no remaining problem for land acquisition.

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