RP435

Foshan Pearl River ComprehensiveRenovation and World Bank Financed

Project

Resettlement Action Plan

(Summary Report)

Foshan World Bank Financed Project Management Office

April 27,2006

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

ABBREVIATION

DPs Displaced Persons

FRWDSD Fenjiang River Waterway Dredging and Sediment Disposal

FRNBI Fenjiang River North Bank Improvements

M&E Monitoring and Evaluation

NRCR National Research Centre for Resettlement

NSDC Nanzhuang Sludge Disposal Centre

PMO Project Management Office

PRO Project Resettlement Office

RAP Resettlement Action Plan

WB Wodd Bank

Zhen'an WWTPIII Zhen'an Waste Water Treatment Plant phaselI

- TABLE OF CONTENT

1. PROJECT INTRODUCTION .................. ...... 1

1.1. KEY OBJECTIVES OF THE PROJECT ...................................... 1

1.2. COMPONENTS OF PROJECT ...................................... 1

1.3. RESETTLEMENT MINIMIZING MEASURES ...................................... 4

1.4. DUE DILIGENCE ISSUES ...................................... 5

2. SCOPE OF PROJECT IMPACTS ...................................... 6

2.1. SCOPE OF PROJECT IMPACTS .................................... 6

2.2. SOCIETY AND ECONOMY SITUATION OF PROJECTAFFECTED AREAS .................................. .. 92.2.1. SOCIETY AND ECONOMY BACKGROUND OF FOSHAN

MUNICIPALITY ..................................................... 92.2.2. SOCIETY AND ECONOMY BACKGROUND OF CHANCHENG

DISTRICT ...................................................... 9

3. POLICY OBJECTIVES AND LEGAL FRAMEWORK ...................................... 1

4. COMPENSATION STANDARD ...................................... 4

4.1. COMPENSATION POLICIES AND STANDARD FOR LANDACQUISITION AND RECLAIMING .................................... 44.1.1. COMPENSATION STANDARD OF RURAL COLLECTIVE LAND

ACQUISITION .....................................................44.1.2. COMPENSATION POLICY FOR LAND RECLAIMING ............................................... 54.1.3. TEMPORARY LAND ACQUISITION COMPENSATION STANDARD ........................ 6

4.2. HOUSE DEMOLITION COMPENSATION STANDARD ................................... 64.2.1. COMPENSATION STANDARD FOR RESIDENTIAL HOUSE

DEMOLITION .....................................................64.2.2. STANDARD OF COMPENSATION FOR WORKSHOP, SHOP AND

WAREHOUSE ...................................................... 7

4.3. SUPPORT POLICY TO VULNERABLE GROUPS ................................... . 9

4.4. STANDARD OF COMPENSATION FOR AFFECTEDINFRASTRUCTURE AND GROUND ATTACHMENTS . . 9

5. RESTORATION PLANS FOR PRODUCTION AND LIFE OF DISPLACED

PERSONS ..................................... 10

5.1. COMPENSATION AND RESETTLEMENT OF PERMANENTLAND ACQUISITION ............................................ 105.1.1. FRNBI ..................................................... 10

5.1.2. ZHEN'AN WWTPIII ..................................................... 10

5.1.3. NSDC ..................................................... 11

5.2. RESIDENTIAL HOUSE COMPENSATION AND RELOCATION ... 12

5.3. COMPENSATION AND RESETTLEMENT FORNON-RESIDENTIAL HOUSE ........................................... 145.3.1. ENTERPRISES AFFECTED ..................................................... 14

5.3.2. SHOPS AFFECTED ..................................................... 21

5.4. RESTORATION PLAN TO AFFECTED VULNERABLEGROUPS ............................................ 22

5.5. INFRASTRUCTURES AND GROUND ATTACHMENTSAFFECTED ............................................ 22

6. ORGANIZATION AND IMPLEMENTATION SCHEDULE . ......................... 23

6.1. ORGANIZATION ........................................... 23

6.2. IMPLEMENTATION SCHEDULE ........................................... 24

7. BUDGET AND CAPITAL SOURCES .......... ........................... 27

7.1. BUDGET ............................................ 27

7.2. ANNUAL INVESTMENT PLAN ........................................... 31

7.3. CAPITAL SOURCES AND ALLOCATION ........................................... 31

8. PUBLIC PARTICIPATION, CONSULTATION AND APPEAL

PROCEDURES .......................... 32

8.1. PUBLIC PARTICIPATION ............................... 32

8.2. APPEAL PROCEDURES ............................... 33

9. MONITORING AND EVALUATION ARRANGEMENT . ......................... 35

10. ENTITLEMENT MATRIX .......................... 36

- TABLE OF CONTENT

Table 1.1 Areas and Introduction of Subprojects . .....................................................................2

Table 1.2 Demolition Quantity Contrast of FRNBI before and after Project Optimization ........... .................. 4

Table 2.1 Project Affected Population ...................................................................... 6

Table 2.2 Permanent Land Acquisition Impact ...................................... ................................ 7

Table 2.3 Temporary Acquisition of Land Unit: mu

.......................................................................................... E rrorl Bookmark not defined.

Table 2.4Affected Residential and Non-Residential Houses .................. ............................. 8

Table 4.1 the Compensation Standard for Rural Collective Land Acquisition ........... Error! Bookmark not

defined.Table 4.2 Compensation Standard for Young Crops ........................... Errorl Bookmark not defined.

Table 4.3 Foshan Basic Price of Industrial Land ......... .................................... 5

Table 5.1 House Demolition Resettlement Plan ............................................. 12

Table 5.2 Enterprises and Public Institutions Resettlement . ............................................ 17

Table 5.3 Shop Resettlement ............................................. 21

Table 6.1 Resettlement Organizations and Its Responsibilities . ........................................... 23

Table 6.2 Subproject Land Acquisition Schedule .......................................................... 24

Table 7.1 Project Resettlement Compensation Budget (Unit: 1000Yuan) ...................... 28

Table 7.2 Annual Investment Plan of Pearl River Overall Treatment Project ........... ............ 31

Table 7.3 Resettlement Capital Sources ........................................................... 31

Table 8.1 Public Participation Procedure .......................................................... 32

Table 8.2 Policy Disclosure Procedure ........................................................... 33

Map of Foshan Municipality

F-:'~~~~~~~~~1I.~~~~~~~~~a..... j t ~i--.. I X7 rFl

FR.D' . -R

''i'- ' en K ' ltK !

Figure 1.1 Foshan Pearl River Comprehensive Renovation and World Bank Financed Project

Table 1.1 Areas and Introduction of Subprojects

| ~~~~ImplementProject Region Project contents Owner ime Remarks

time

Recondition the Permanent land acquisition

shore line, Water 108mu, 25mu temporarily

FRNBI Chancheng interception Conservancy 2006.10-2008.12 and house demolition areaDistrict pipelines pave Bureau 1844.58m2, 33 enterprises

along the shore, the and public institutions are

sight virescence affected.

Fenjiang RiverEnvironmental Temporary land acquisition

EROO Chancheng Waterway DredgingFRWDSD Chancheng.Dstrc .and edint protection 2007.6-2008.12 240 mu and no resettlementDistrict and Sediment

Disposal Bureau and RAP is unnecessary

Zhen'an 22 enterprises affected andWater Supply dmlto os rai

WWT Chancheng Zhen'an WWTP demolition house area isGeneral 2007.1-2008.12 2

system District III 23797. 33m , RAP is

(phaselll) necessary

Land acquisition 30mu and

NSDC Chancheng Nanzhuang sludge General 2006S8-2008u7 affect 4 persons. A LandDistrict Nanzhuang sl G ne.7 acquisition procedure wasTreatment Plant Company dn eoeW em

I I I ~~~~~~done before WB team.

Fenjiang River North Bank Improvements Project (FRNBI)

The project scope is, along the west side of Fenjiang River, from Fokai highway

bridge to planned Haiwu Road bridge in the east, the horizontal depth of it is 15-

2

25m to river line, or the land between river line to Zhongshan Road and Hebing

Road. This project mainly include recondition of 6.67 kilometers shore lines, pavinginterception pipeline along the shore, the sight virescence, expanding and rebuilding

Zhongshan Road and Hebing Road. Among them, the Hebing Road, from Wensha

Bridge to planned Haiwu Road Bridge, is a part of the sight-brightening project and

marsh park ( the west bank). This project involves the transferring of state-owned

land and house demolition.

Fenjiang River Waterway Dredging and Sediment Disposal (FRWDSD)

This project is to dredge Fenjiang River and Foshan creek and its main branches.

The trunk streams of Fenjiang River is from the Shakou water gate in the west ofChancheng district, flowing across Chancheng, Nanhai district, and to the joint place

of Shawei Bridge and Pinzhou watercourse and total length is about 26.4 km.

Foshan creek River, the branch of Fenjiang River, is from People Bridge, towards

the east and turns to south, across Jun Bridge and reaches Shiken water gate in

Nanhai District and its length is about 8.5 km. This project does not involve housesdemolition and permanent land acquisition, only temporary land acquisition.

Zhen'an Waste Water Treatment Plant phase IlIl (Zhen'an WWTPIII)

The sewage interception area of the Zhen'an WWTP covers the east and south-east

part of Foshan, and Shiken area of Nanhai District. It is boarded by Foshan creek to

the north , Foshan Dadao to the west and Dongping watercourse to the south east,with the total service area reaches 33.31 KM2 , where there are 338900 residents

(2003), and it will reach 513000 (2020). The project is divided into two parts, which

are WWTP and the collection and transmission system of waste water. WWTP

locates in Zhen'an Village of Chancheng district, and the extending project phase

occupies land 144 mu. The waste water collection and transmission system includes38196 m waste water pipeline of and three newly built pump stations (WW pump

station in Hi-Tec zone, No.1 Shiken I waste water pump station, Shiken II pump

station,). One pump station need extended (Shijiao WW pump station). This projectinvolves state-owned land transfer and houses demolition.

Nanzhuang Sludge Disposal Centre (NSDC)

The site of factory locates in Nanzhuang town of Foshan; the first phase scale is 400

tons/day (mud contains 80% water). The project mainly treats the mud from Zhen'anWWTP, Dongfan WWTP, Shagang WWTP, Nanzhuang WWTP, North City WWTP,and some from outside of Shancheng district. The plant dewaters mud from theseWWTPs. The permanent land acquisition agreement signed in January, 2005, that isbefore the WB project identification mission. Up to now, the resettlementimplementation has not been started.

3

1.3. RESETTLEMENT MINIMIZING MEASURES

Design plan and construction plan optimization, project objective adjustment are

adopted to reduce project impact on land acquisition and house demolition,

Comparison and Selection on Schemes. During project planning and design,

socioeconomic affect to local areas should be considered where feasibly, exploringalternative project design. According to first plan, the north bank project in Fenjiang

River has a large task of demolition and displacement. To decrease resettlement,

Foshan Water Conservancy and Hydroelectric Power designing Ltd., Co., National

research center of resettlement (NRCR) of Hohai University and Foshan water

conservancy bureau optimized the project according to the following principles:

i) no demolition if involving dock; ii) no demolition if affect enterprise production orstoppage; iii) no demolition if with large amount; iv) to decrease land acquisition and

house demolition by engineering measure where possible. After optimization,demolition area of enterprise's buildings and land was reduced 55571 m2 , and the

demolition residential house area was reduced 1107 m2 . The contrast sees Table 1.2

Resettlement impacts of FRNBI before and after project optimization.

Table 1.2 Resettlement impacts of FRNBI before and after Project Optimization

Permanent landQuantity Demolition Area( M2 ) Persons affected

acquisition ( mu) ____

Category After BeforeBefore Before After Before After After

optimiz optimizioptimizing ing optimizing optimizing opimizing optimizing ng optimizing

affected enterprises 47 33 135371 79800.13188.94 108 6438 1718

Residential houses 55 10 2951.2 1844.58

Optimize the construction project. Zhen'an WWTP lays the waste water pipeline

at the road edge or in the middle of road and use fenders in two sides during

construction, which reduces breakage to house nearby in the greatest extent and

avoids dismantling house.

Analyze the rational pipeline direction. During paving pipeline in the downtown and

project orientating in Zhen'an WWTP , the deigning company analyzed the pipelinedirection rationally, and all construction is on the road to avoid house demolition.

Adjust projects objective to decrease land acquisition and house demolition. Theformer treatment capacity of Zhen'an WWTP is 150 thousand m3 /day. And 300

mu lands would be acquired according to that plan. After demonstrations, treatmentcapacity change to 50000 m3 /day and only 50 mu land be needed which less thanthe original plan. Thus, 24164m2 house demolition, 14 affected enterprises and 679APs are avoided. Another example, the original plan is to pave the pipeline on both

4

sides of river. But, because of one side densely covered by buildings and demolitiontask is huge, they adopt the special technology to hang pipelines on the side of river

with buildings, thus to avoid the house demolition and displacement.

1.4. DUE DILIGENCE ISSUES

Due diligence issues refers to the other projects that are related to project function orbenefit during its preparation and implementation. In project design, project ownerspay much attention to due diligence issues. Project office and subproject designinstitutions analyzed all the subprojects and found that there are no diligence issues

to this project.

5

2. SCOPE OF PROJECT IMPACTS

2.1. SCOPE OF PROJECT IMPACTS

According to the request of World Bank and Foshan World-Bank-loan project office,

from May to June, 2005, project office and design institution did survey completely in

detail on permanent and temporary acquisition of land, displaced persons' families,

affected enterprises, and on the society and economy of countryside, sub-districts

and communities. Affected persons participated in the survey. The survey groups

hear the suggestion from residents, enterprises about land acquisition or other

resettlement, and consulted with them.

Area affected by this project is mainly in Chancheng District of Foshan. The main

impacts are acquisition of land, allocation and transfer of state-owned land and

demolition and displacement of residents, enterprises, and infrastructure and ground

attachments. Permanent acquisition of land is 188 mu, and residential house

demolished 1844.58 m2 , enterprise building area 103597.46 M2. affected persons

directly are 1980, among them, there are 4 people affected for acquisition of rural

land, 38 people in 10 families affected for demolishing their houses, 48 people in 18

shops for demolishing their shops, and the project demolishes 41 enterprises and

affects 1890 persons, among them, there are 269 floating population'.

Table 2.1 Project Affected Population

Number of person affected

AmongSub-project Item eory Amn

subtotal In-service retirement Temporary them:Labor Floating

Populationresidential house

38Demolition

Enterprise's buildingsFRNBI 1634 1543 0 91 86

Demolition

shops Demolition 46 46 0 0 0

subtotal 1718 1589 0 91 86

Zhen'an enterprise's buildings 256 22256 22 O ~ ~~ 234 183

WWTP Demolition

shops Demolition 2 2

The people who works in Foshan but without municipal household registration

6

subtotal 258 22 0 234 183

NSDC acquisition of land 4subtotal 4

total 1980 1611 0 327 269

There are 3 sub-projects involving permanent acquisition of land, and they are

Zhen'an WWTPIII, FRNBI, NSDC, which permanently occupy 188 mu totally. Among

them, FRNBI permanently takes 108 mu land that includes industry-used land

106.75 mu and 1.25 mu collective wasteland; Zhen'an WWTP permanently

occupy 50 mu land, among them, 45 mu industry-used land is the main

industry-used land, 5 mu states-owned land for pumping station; NSDC need occupy

30 mu lands from Nanzhuang Village, and most of these lands are fishing pond and

a few of wasteland.

Table 2.2 Permanent Land Acquisition Impact Unit: mu

Among themOccupied State-owned land Collective land

Projects Component Area(MU) Industry State-owned Farmland /Fishing Wasteland

Used land' vacant land' pond

FRNBI no 108 106.75 1.25

WWTP 45 45Zhen'anWWTPIII Pump 5 5

station

NSDC no 30'1' 30

subtotal 188 151.75 5 30 1.25

There are 3 sub-projects involving temporary acquisition of land, and they are FRNBI,

Zhen'an WWTPIII, FRWDSD, which temporarily occupy 494 mu lands totally, and

they are state-owned land. Among them, FRNBI 25 mu, FRWDSD 240 mu, Zhen'anWWTPIII 229 mu. Temporary acquisition of state-owned Land during pipeline paving

doesn't belong to the compensation for land acquisition, and the project compensatefor the ground attachment by the resetting price. After construction, the project is

responsible of recondition of land by the original standard and scale, and the

recondition expenses bring into the project construction fund.

Industrial land is the land area in the scope of enterprises or public institutions. This projectadopts separate compensation for buildings and land so the industrial land here includes not onlyvacant land in plant site but also areas houses occupy.

ii Vacant land here refers to the untapped state-owned land outside of enterprises scope.I Land acquisition: Nanzhuang Village, 25 mu; Zinan Village, 2 mu; Luonan Village, 3 mu.

7

Only FRNBI involves residential house demolition. The area of house demolition is

1844.58 m2 totally, and the project affects 10 families and 38 residents.

There are 2 subprojects, FRNBI and Zhen'an WWTPIII, affecting 41 enterprises, with

103597.46 m2.Among them, FRNBI affects 33 enterprises with 79800.13m2,reinforced concrete building is 26588.23 m2 , brick-concrete 28415.96 m2 , brick-wood

20626.52 m2, and simple structure 4169.43 m2. Zhen'an WWTPIII affects 8enterprises and 23797.33 m2of brick-concrete structure buildings, with 252 affectedlabourers. Two of which belong to the property right of the Guangdong Modern

Motor Trading Market Co. and Zhenan Wastewater Treatment Plant. The affected

former one is leased to 5 enterprises, and the later one is leased to one corporation

as 1 storehouse.

Among the affected enterprises, 705 m2 houses .are leased to 18 shops with 48affected labourers.

Table 2.3 Affected Residential and Non-Residential Houses

residential house area ( m2 ) enterprise house area ( mName of

Brick Brick Reinforced Brickprojects total Simple total Brick-concrete Simple

Concrete wood concrete wood Sml

FRNBI 1844.58 1430.12 414.46 0 79800.13 26588.23 28415.96 20626.52 4169.43

Zhen'an23797.33 23797.33

WWTPIII

total 1844.58 1430.12 414.46 0 103597.46 26588.23 52213.29 20626.52 4169.43

In addition, this project involves 2 species of vulnerable group, among them, 3unemployed persons, 1 elder who live alone.

Table 2.4 vulnerable groups

Name

of name gender age Educational unemployed eider whoprojects attainments person live alone

FRNsl W pension, 15000yuanHuan Lifan female 76 elementary school

/year

W ~~~~~engaged in industry,Xie Yanfan female 50 elementary school

12000yuan / year

A ~~~~~engaged in industry,Chen Jingqiao male 52 elementary school.___________ _ _.l12000yuan / year

engaged in industry,Liang Jinrong male 42 senior high school

_______ _____________ _____ _ _____________ __ __________ ___ 12000yuan / year

8

The project also affects house and ground attachments, public infrastructures, totally

16 species.

2.2. SOCIETY AND ECONOMY SITUATION OF PROJECT AFFECTED AREAS

2.2.1. SOCIETY AND ECONOMY BACKGROUND OF FOSHAN MUNICIPALITY

Foshan is an old but also young city which locates in the middle south of Guangdong

province and the hinterland of Pearl River Delta. It connects with Guangdong in east,Zhaoqng in west, Pearl River in south, Qingyuan in north and neighbours Hong Kong

and Macao. It has an excellent position. Foshan belongs to subtropical monsoon

moisture climate with mild climate and abundant rainfall. Land is fertile and plants

are perennial green. Annual average temperature is 22.1°C and rainfall is

1,600-2,000 mm. Natural resources are china clay, rock, glass sand. rare metal and

pond fish, paddy, sugar cane and various fruits and flowers.

Foshan neighbors with Guangzhou and it can be affected and brought along by

Guangzhou municipality and can share the resources of transportation, finance,

human resources and information with Guangzhou. Two cities can achieve industry

linkage and function complementation and promote regional economy integration

and urbanization to establish city circle of "Guangzhou & Foshan".

Foshan is prefecture level municipality and includes Chancheng, Nanhai,

Shunde,Sanshui and Gaoming five districts. The total area is 3848.49 km2. There

are 3.4424 million permanent residents in Foshan. Also there are 2.1087 million

people coming outside of Foshan, in which 2.0662 million people have temporary

resident license and the rate is 97.98%; there are 165.1 thousand rooms been

rented in Foshan.'

Foshan is a historic culture city and is one of four famous Towns in Ming and Qing

dynasties. From then on business was prosperous. Foshan also the hometown of

overseas Chinese. There are more than 1.3 million overseas Chinese and Hong

Kong and Macao fellowmen and in which Hong Kong and Macao fellowmen are 6

hundred thousand.

2.2.2. SOCIETY AND ECONOMY BACKGROUND OF CHANCHENG DISTRICT

With the arrangement of State Council and Guangdong province to Foshanadministrative districts, in Dec,2002, former downtown of Foshan, Shiwan districtand Nanzhuang town of Nanhai municipality form new Chancheng district and on

From Foshan Municipality Statistics Yearbook of 2003.

9

Jan 8th, 2003 it came to existence. Shancheng distict is one of five administrative

districts of Foshan and is the centre of Foshan politics, finance, culture and

education, Foshan municipal government also locates here. The total area of this

district is 154.68 km2 and permanent residents are 9.6 hundred thousand. It includes

Nanzhuang town and eight sub-district agencies.

In 2003, the GDP of Chancheng district was 24.58 billion Yuan increasing 16.2%;industry production value 56.67 billion Yuan increasing 21.6%; social fixed assets

investment 9.57 billion Yuan increasing 37.5%; consumption articles retail 10.25

billion Yuan increasing 4.6%; Exportation 2.14 billion US dollars increasing 30%;

foreign capital use 314 million US dollars and tax 552 million Yuan increasing 12.9%.

10

3. POLICY OBJECTIVES AND LEGAL FRAMEWORK

In order to achieve land acquisition and house demolition of Foshan municipality

Pearl River integrated improvement project financed by W, to guarantee the legal

rights of affected persons and enterprises and to implement project successfully,

polices was worked out according to rules and laws of P.R.C, Guangdong Provinceand Foshan government, World Bank OP4.12 Involuntary Resettlement. The main

law frame is,

National Laws and Regulations

Land Administration Law of the People's Republic of China (Come into force since

August 28, 2004)

Regulations for the Implementation of the Land Administration Law of the People's

Republic of China (Come into force since August 28, 2004)

Law of the People's Republic of China on Administration of the Urban Real Estate

(Come into force since Jan 1, 1995)

Regulations for the Administration of Urban Houses Demolishment (Come into force

since November 1, 2001)

Guiding Opinions on Appraisal of Urban House Dismantlement (Come into force

since January 1,2004)

Guiding Opinions on improving system of Land Acquisition, Compensation and

Resettlement (Come into force since November 3, 2004)

Local Regulations and Policies

Measures of Guangdong Province on implementing the Land Administration Law of

P. R. China (come into force since November 27, 1999)

Measures of Guangdong Province for The Administration of Urban Houses

Demolishment (come into force since December 31,1997)

Measures for the administration of Guangdong Province non-agriculture constructionsupplemental farmland (come into force since January 1, 2002); Regulations ofGuangdong province for the Administration of overseas Chinese House Demolition(come into force since May 18, 1995)

Provisions of Foshan Municipality on the Administration of Farmland Transfer andAcquisition (Foshan [2001] No.023) (come into force since March 5, 2001)

1

Opinions of Foshan Municipality on the Reform of Land Acquisition (come into forcesince July 1, 2004)

Opinions of Foshan Municipality on Subsidy System of Basic Endowment Insuranceof Land Loss Rural Residents (Foshan [2004] No.96) (come into force sinceSeptember 30, 2004).

Provisions of Foshan Municipality on State-owned Land Use Rights Allocation (comeinto force since March 21, 2001)

Opinions on solving Question Left over by construction History in Shiwan village,town, district(Foshan [2002] No.49); Notice on Printing and Distribution of UrbanHouse Demolition Subsidy Standard of Foshan Municipality (come into force sinceJuly 24, 1998)

Aide-memoire of Foshan Municipal Construction Bureau on printing and distributionof extending southward Dafu Road Project land acquisition and demolitionimplement plan (come into force since May13, 2004)

World Bank Policies

World Bank Operational Policy 4.12 Involuntary Resettlement and Appendix (Comeinto force since January 1, 2002)

World Bank Operational Policy 4.12 Involuntary Resettlement and Appendix (Comeinto force since January 1, 2002)

The objective of project resettlement policy is to minimize the adverse affectsbrought by land acquisition and demolishment. Displaced persons' will be providedcompensation at full replacement cost " for losses of assets and assisted to restoreeven surpass former living standards. Mean policy principles as follows:

"Displaced persons" refers to all the people who, on account of the activities listed above, would have their (1)standard of living adversely affected ; or (2)right, title, interest in any house, land (including premises, agriculturaland grazing land) or any other fixed or movable asset acquired or possessed temporarily or permanently; (3)access to productive assets adversely affected, temporarily or permanently; or (4)business, occupation, work orplace of residence or habitat adversely affected; and "displaced person" means any of the displaced persons.ii "Replacement cost" is defined as follows: For agricultural land, it is the pre-project or pre- displacement,whichever is higher, market value of land of equal productive potential or use located in the vicinity of theaffected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost ofany registration and transfer taxes. For land in urban areas, it is the pre-displacement market value of land ofequal size and use, with similar or improved public infrastructure facilities and services and located in the vicinityof the affected land, plus the cost of any registration and transfer taxes. For houses and other structures, it is themarket cost of the materials to build a replacement structure with an area and quality similar to or better thanthose of the affected structure, or to repair a partially affected structure, plus the cost of transporting buildingmaterials to the construction site, plus the cost of any labor and contractors' fees, plus the cost of any

2

(a) When possible, resettlement plans should be conceived as developmentopportunities, so that those affected may benefit from project activities.

(b) Lack of legal rights does not bar displaced persons in peaceful possession fromcompensation or alternative forms of assistance.

(c) Compensation rates refer to amounts to be paid in full to the individual orcollective owner of the lost asset, without deduction for any purpose. AlsoIndividual owners receive compensation for affected structures and other fixedassets, and villages receive compensation for acquired land in rural areas.

(d) When cultivated land is acquired, it often is preferable to arrange for land-for-landreplacement through collective land redistribution. In some cases, as when onlysmall proportions of income are earned through agriculture, alternative measuressuch as payment of cash or provision of employment are acceptable if preferredby the persons losing agricultural land.

(e) Replacement house plots, sites for relocating businesses, or redistributedagricultural land should be of equivalent use value to the land that was lost.

(f) Transition periods should be minimized. Compensation should be paid prior tothe time of impact, so that new houses can be constructed, fixed assets can beremoved or replaced, and other necessary measures can be undertaken beforedisplacement begins.

(g) Displaced persons are consulted during the planning process, so theirpreferences regarding resettlement arrangements are considered; resettlementplans are disclosed in a publicly accessible manner.

(h) The previous level of community infrastructure and services and access toresources will be maintained or improved after resettlement.

(i) The borrower is responsible for meeting costs associated with land acquisitionand resettlement, including contingencies.

(j) Resettlement plans include adequate institutional arrangements to ensureeffective implementation of resettlement measures.

(k) Resettlement plans include arrangements for internal and external monitoring ofresettlement implementation.

(I) Resettlement plans include procedures by which displaced persons can pursuegrievances.

(m) The time of displaced persons eligibility definition is the announcement date ofdemolition. After this date, displaced persons can not build new houses, expandand rebuild houses, can not change the use purpose of land and house, and cannot rent them.

registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value ofsalvage materials are not taken into account, nor is the value of benefits to be derived from the project deductedfrom the valuation of an affected asset. Where domestic law does not meet the standard of compensation at fullreplacement cost, compensation under domestic law is supplemented by additional measures so as to meet thereplacement cost standard. Such additional assistance is distinct from resettlement measures to be providedunder other clauses in OP 4.12, Para. 6.

3

4. COMPENSATION STANDARD

According to above legal frame, compensation standard of all kinds is decided'.

4.1. COMPENSATION POLICIES AND STANDARD FOR LAND

ACQUISITION AND RECLAIMING

4.1.1. COMPENSATION STANDARD OF RURAL COLLECTIVE LAND ACQUISITION

The land acquisition of this project only involves NSDC. According to the negotiationresult with Nanzhuang village, land acquisition contract with Nanzhuang village wassigned in Feb. 2004 (before Project Identifying mission of WB. see annex of the mainreport). The compensation rate for farmland or fishpond is 65000 Yuan/mu and 12.5Yuan/ m2 for reclamation fee of fish pound; 28 Yuan/ m2 for the tax of increased newconstruction land, 8 Yuan/m2 for the tax of farmland occupation and 3% of total costfor the management fee. The compensation rate for waste land is 40000 Yuan/mu.

The compensation rate for rural collective land acquisition is showed in table 4.1.

Table 4.1 compensation rate for rural collective land acquisition

type unit Compensation taxrate

Farmland, fish pound Yun/mu 65000 Fish pond: 12.5Yuan/m2

New construction land tax:28Yuan/m2.

farmland occupation:8Yuan/m2Management fee:3%

River bank, branch of a river, Yuan/mu 40000waste land

Young crop compensation is only paid to present crop in land taking areas; no cropsno compensation. Compensation standard for fish pond including pond drying

Residential and non-residential houses will be compensated as replacement evaluation cost or as the standardin resettlement plan if evaluation price is lower than the one of resettlement plan.

4

expense is 45000Yuan/ha. (3000Yuan/mu) Compensation standard for youngcrops shows in table 4.2.

Table 4.2 compensation rate for young crops

Type unit | Compensation rateFish pond Yuan/mu 3000

4.1.2. COMPENSATION POLICY FOR LAND RECLAIMING

The compensation policy for Land Retrieval is based on aide memory on southwardDafu Road extending Project implement schedule (Foshan municipal public utilitybureau, Foshan municipal national land resources bureau and Foshan municipalconstruction bureau printed and distributed, came into force on May13, 2004)

The compensation standard of state-owned land allocation

Compensate according to the formula, local land acquisition compensation standard+ tax and fee for original transaction of land acquisition + fee for filling land. Partialcompensate can be given if the land allocation had provided a supplement to theprocedure of land leasing and they have already paid land leasing money togovernment.

Land acquisition compensation is according to Foshan land retrieval standard(Foshan [2001] No.023). The project compensates 75000 Yuan /mu without interest,and the standard of tax and fee for original transaction of land shows table 4.1, andland filling fee is 4.5 Yuan /m2 .

Compensation standard for land leasing

The actual using years and of land reclaiming circumstance are the compensationbase, and the specific standard is the evaluation by the evaluation company selectedby both sides. The remising evaluation is taken in hand by qualified evaluationinstitution of real estate, and the evaluation report must be signed and confirmed bythe full-time registered real estate assessor, then it become affective.

The project budget can be calculated with the basic price of Foshan industrial landfor reference. See Table 4.3. Chancheng District land affected by this project isCategory II industry land. According to land management policy in Foshan, in thearea with the basic land price, the minimum remising price in agreement can not bebelow 70% of basic land price.

Table 4.1 Foshan Basic Price of Industrial Land

Sort of industrial land Unit Price Minimum compensation standardYuan/mu 400002 280000

i Citing from 'Chart of Chancheng district basic land price for commercial land use' (Foshan municipal landbureau),

5

2 Yuan/mu 323335 226330

3 Yuan/mu 286668 200670

4.1.3. TEMPORARY LAND ACQUISITION COMPENSATION STANDARD

Pipelines laying taking state-owned land temporarily need not land compensation.Ground attachments demolished will be compensated as replacement cost. Afterthe construction, the project side should restore all of these according to the originalstandard and scale and the restoration expense will be included in projectconstruction cost.

4.2. HOUSE DEMOLITION COMPENSATION STANDARD

4.2.1. COMPENSATION STANDARD FOR RESIDENTIAL HOUSE DEMOLITION

(1) Compensation and resettlement for house demolition. Cash compensation orhouse exchange with same cash value can be chosen. Displaced persons can alsochoose property rights house exchange in other place with the construction areasand need not calculate differential price in resettlement areas.

Demolishers should at least provide buildings in two setting place, so as to fordisplaced persons to choose.

(2) Cash compensation for residential house. Residential house demolition,compensation will be decided according to the market evaluation price andconstruction area of demolished house with the principle of house replacement.

No matter if urban residential house has house property certificate or no, all will becompensated as legal building. Because the house structure is different, thecompensation of construction area is 1800-2400 Yuan/M2.

(3) Moving allowance and relevant expenses. Moving allowance, equipmentremoving fee, temporary resettlement subsidy in the transition period should begiven to displaced persons and leaseholders. They should increase temporaryresettlement subsidy from overdue transition period. Residential housecompensation standard see tables 4.4.

Table 4.4 Compensation Standard for Residential House

Compensation standardStructure (contains land price)

Yuan/M2

6

Compensation standard

Structure (contains land price)

Yuan/m2

frame 2000-2400

brick-concrete 1900-2300

Brick-wood 1800-2200

Simply-built 500

moving allowance Regard a family as a unit, a family with 5 people and under 5 people gets 600 Yuan; Familyover 5 people gets 800 Yuan.

temporary resettlement10 Yuan/m2 / month *6 Months

subsidy

This project has no rural residential house refer to floors below four.

4.2.2. STANDARD OF COMPENSATION FOR WORKSHOP, SHOP AND WAREHOUSE

According to Foshan municipal policy, the land and house of workshops, warehouseand shops are compensated separately. Enterprises and shops will becompensated according to Aide-memories on southward Dafu Road extensionProject, Enterprises and shops will be compensated according to the land type andlocal market evaluation price. In addition, the loss by stopping production andbusiness activity and removing equipment will also be compensated.

Alternatives for demolition and resettlement compensation are cash compensationand resettling other place with same value as cash compensation.i

Non-residential house demolition, compensation is decided according to the price ofhouse in real estate market. For non-residential house not be leased or rent isdecided by owner and leaseholder consultation, if the owner cancels contract withleaseholders, demolishers compensate for them; If they could not reach agreementfor stopping the relationship of rent, demolishers compensate them transposedhouse with same value, and the house for resettlement will rented by the originalhouse renter, who makes another contract with demolishers.

Non-residential house demolition, the demolishers should compensate to houseowners and renters for the following fees, (1) fee for removing and installingequipments according to the national and Foshan municipal freightage price andinstalling equipments expense, (2) compensate as replacement cost to equipmentsthat can't be restored, (3) Compensate to the loss because of production stoppage orclosing up shop.

i Citing from the notice on printing and distributions of Foshan urban house demolition subsidy standard Foshanreal estate [1998]35

7

The rights of enterprise workers will not be affected by displacement, including theirwages, medical treatment and social insurance, bonus etc. They will not lose jobbecause of displacement. To inform affected temporary staff member three monthsin advance, freely provide the employment information and help them to find newjobs as soon as possible.

The shop renter who rents the factory house will be informed 3 months in advancefor them to find other shops to continue business, and the project executive providesthe leasing information. To inform affected temporary staff member three months inadvance, freely provide the employment information, help them to find jobs as soonas possible.

The executive of dismantling house must notify in advance, and provide to renter therent information about houses with the same area in the same region, so to makerenter have time to look for the fit house to go on his business. And compensate tothe fee of removing.

Compensation standard for shops, workshops and warehouse see table 4.5, and

moving allowance see table 4.6, the temporary resettlement subsidy see table 4.7.

Table 4.5 Shops, enterprises and Warehouse Compensation

Structure Compensation standard (Yuan/ m2

Frame 750

Brick -concrete 600

Brick-wood 350-500

Simply-built 150-250

Temporary building 50-100

Table 4.6 Moving Allowance Standard

Building area Unit Compensation standard

s50m2 Yuan/each 1000

51 -1 00 m2 Yuan/each 2000

101-200 m2 Yuan/each 3000

:201 Yuan/each 4000

Table 4.7 Temporary Resettlement Subsidy

House category Unit Compensation standard

Office house Yuan/m2 Month 30

Factory house( workshop), warehouse Yuan/m2 Month 15

shops Yuan/m2 Month 80-100

Temporary Resettlement is calculated on 6 months.

8

4.3. SUPPORT POLICY TO VULNERABLE GROUPS

Vulnerable groups affected by the project can not only enjoy the above homologous

policy, but also other favorable and special policies:

* Give the labors of vulnerable groups' professional training and provide variousemployment information and guide to increase employment opportunities.

* During project implementation, priority should give to vulnerable groups children

on unskilled work.

* Demolishing organization should assist vulnerable group displacing.

4.4. STANDARD OF COMPENSATION FOR AFFECTED

INFRASTRUCTURE AND GROUND ATTACHMENTS

Project affected ground attachments and public infrastructures will be compensated

as replacement cost.

9

5. RESTORATION PLANS FOR PRODUCTION AND LIFE OF

DISPLACED PERSONS

The resettlement objective of this project is to make sure that displaced persons canget good compensation for all the lost, resettlement and restoration, and enablethem to share project benefits. Displaced persons should be given allowance to theirtemporary difficulties, to improve their livelihoods and standards of living and theenterprise's ability on production and profit, or at least to restore them topre-displacement levels or to levels of beginning of project implementation,whichever is higher.

5.1. COMPENSATION AND RESETTLEMENT OF PERMANENT LAND

ACQUISITION

There are three subprojects involving permanent land acquisition and they areFRNBI, Zhen'an WWTPIII and NSDC. Theses three subprojects occupy 188 mulands permanently and affect 1980 people, including 4 agricultural labors that needto be resettled.

5.1.1. FRNBI

FRNBI need take 108 mu lands permanently, including 104.27 mu industrial land,2.48 mu state-owned lands and 1.25 mu collective wasteland. The state-owned andenterprise land is gained by paid allocation. Enterprises all are affected partly, so donot neither need overall displacement nor labor resettlement. Workers affected willnot lost jobs because of part adjustment. The collective land occupied is allwasteland of Fuxi village and the area takes little proportion (1.25mu ) in whole villagearea so there is no labor resettlement involved.

5.1.2. ZHEN'AN WWTPIII

The project construction requires 65 mu land totally, 15 mu of which is previouslyreserved by Zhenan Wastewater Treatment Plant for the 2nd period of construction.In addition, Zhen'an WWTPIII need take 50 mu permanently and all is state-ownedland, including 45 mu for WWTP and 5 mu for water pump station. The usage right of

10

45 mu land belongs to Guangdong Modern Motor Trading Market. On 17th, Jan,1995 this trading market got usage rights of land by paid allocation. The total area is184447.5 m2 (276.67 mu) . This market is a joint-stock company with threeshareholders, which are Foshan Huanshi Town Real Estate Development Company,Zhen'an Precinct of Huanshi Town and Industrial and Commercial bureau of ShiwanDistrict. The main business of company is workshop lease and annual income oftotal rent is 5.2 million Yuan and there are four workers in company. The companyhope to be resettled in another place, but the present situation is that the land use inFoshan Hi-Tech development zone is tense, and considering there are still 224 muindustrial land left after 45 mu land being taken, so cash compensation or mixed withresettlement in other place are adopted. People who need resettlement are mostlycompany managerial persons or some assets owners. They will get compensationaccording to policies and will not lost jobs because of displacement.

5.1.3. NSDC

This project requires 30 mu lands which are used as fish ponds in Nanzhuang villageof Nanzhuang town. Altogether 4 villagers of Nanzhuang village are affected, all ofthem are the contractor the ponds. The average affected fishpond is 8mu perperson.The land acquisition contract has been signed in Jan of 2005. Accordingly,by the December of 2005, the 1.95 million RMB land compensation and subsidy hasalready been paid to the villagers.

The Nanzhuang village founds (acts as) Nanzhuang Group Enterprise by operatingthe profit sharing system and the villagers become shareholders according to thearea of land they own. All land(including the fish ponds) are operated by theenterprise and the access of all land, ponds and construction lands are bid by pricingin market. The assignable part of the total profits from the land is distributed to thevillagers according to their share of stock. It was about 800yuan sharing per capita in2005.The acquired pond is bid to the villagers once every 5 years, and the recentone took place in 2001 with 2000yuan for renting a year. The renter of the pondbreed common species of fish and their annual income is about 4000/mu.

The APs was previously informed by their contract with the village that their contractwould be ended if their land is acquired without any compensation. The Aps couldgain the 3000/mu green corps compensation in case of the acquisition. Afterwards,they could lead their income by working in nearby enterprises or biding for otherfishponds in neighbouring villages, besides the earrings from the investment of theirland compensation. In addition, the Nanzhuang village has began the trainingprogram aiming at enhancing their capability to find a job (to ensure their success injob-hunting) in nearby enterprises. From the survey of the affected areas, it is aboom in both industry and service sectors, which can be proved by the 18-19increasing rate of the GDP in last two years. As one of the most flourishing districts inchina, Foshan ensure the Aps great possibility to find a job because of the greatamount of job opportunities as well as the thriving labor market. As the monthly

11

payment of nearby enterprise is 800-1000RMB/month, the Aps's life quality will bewell off.

5.2. RESIDENTIAL HOUSE COMPENSATION AND RELOCATION

The construction area of house demolished this project is 1844.58 m2 andinvolveslO urban residential families and 38 residents. For affected families,according to their will, project will provide material resettlement and cashresettlement and many resettlement sites. Resettlement will shows that mostaffected residents choose material resettlement. But they also accept cashcompensation if no satisfied house sources.

In affected residents, there are two families' houses areas are small. Namely LiangJinrong(49.96m 2) and Chen Zhiji(37.26 m2 ). Liang Jinrong lives with his daughter(total two persons), and he is working outside for job and annual income is about12000 Yuan. Chen Zhiji, has seven family members, and his family lives in anotherhouse with 200 M2 within Foshan downtown. The demolished house is just forrenting. Based on the investigation, there are many 50 m2 or so commercial housesnearby, so these two families need not be arranged specially.

So, the will and economy level of affected residents should be considered in project

resettlement plan preparation. See Table 5.1.

Table 5.1 House Demolition Resettlement Plan

Any otherDemolished Resenilement

No. Householder Persons Houses in Relocated siteslhouse area Foshan Option

Second-hand house nearby,

1 Huang Lifang 1 92.04 No Relace Cuijingtai sub-district or cashother place

resettlement

Second-hand house nearby,Relocated in

2 Xie Junquan 11 385 No other place Cuijingtai sub-district or cashresettlement

Second-hand house nearby,Relocated in

3 Lu Xiaoxin 5 366.76 No other place Cuijingtai sub-district or cash

resettlement

Second-hand house nearby,Zhu Relocated in

4 3 497.36 No Cuijingtai sub-district or cashZhongxin other placeresettlement

Second-hand house nearby,5 Zhu 4 106.49 Yes Relace Cuijingtai sub-district or cash

Mingzhong other placeresettlement

6 Chen 3 88.96 Yes Relocated in Second-hand house nearby,

12

Any otherDemolished Resettlement

No. Householder Persons Houses in Relocated siteshouse area Option

Foshan Oto

Zhiqiang other place Cuijingtai sub-district or cash

resettlement

Second-hand house nearby,Relocated in

7 Xie Yanfang 2 117.55 No other place Cuijingtai sub-distrct or cash

resettlement

. Second-hand house nearby,Relocated In8 Liang Jinrong 2 49.96 No, Donghaiwan sub-district or

other place Dnhia u-ititocash resettlement

Second-hand house nearby,Chen Relocated in9 4 103.2 Yes Cuijingtai sub-district or cash

Guoshou other placeresettlement

Second-hand house nearby,10 Chen Zhiji 3 37.26 Yes Relace Donghaiwan sub-district or

other place cash resettlement

Total 38 1844.58

Cuijingtai sub-district locates in No 4 at Fenjiang middle road and has 22 sets ofhouses. The average area is 114-124 m2 and price is 2300-2520 Yuan/M2. Thissub-district is well-appointed and transportation is convenient and close to formerresidential sites and is comparatively cheaper. So, it is an ideal place for residents.Donghaiwan sub-district is a valuable place with high quality and low price inChancheng District. The flat types are two or three rooms and there are 30 flats forsale with 60-80 m2 and 2300-2600 Yuan/M2. Donghaiwan sub-district locates in thejunction of Wufeng road and Fenglin Road (Cuowan road); there are supermarkets,agricultural products markets, Zhangcuo hospital, Zhangcuo Middle School and onlytakes five minutes to downtown of Chancheng.

There are a lot of second-hand houses in the north bank of Fenjiang River andsecond-hand house business is prospered. According to the data of Foshan realestate information network in May 21st, 2005, there are 300 pieces of informationabout second-hand houses in the north bank of Fenjiang River and price is1800-2200 Yuan/ m2, which can satisfy the demand of displaced persons in thisproject. Because second-hand house information change always, detailed amountand place of houses are not listed in the project.

Besides, for persons who do not want to resettle in pointed resettlement sites, theycan be resettled by cash resettlement. As we know that the new house price nearFenjiang River is 2200-2800 Yuan/M2 and second-hand is 1800-2200 Yuan/M2. Withcompensation affected persons can buy houses with same quality or better thanformer one.

13

5.3. COMPENSATION AND RESETTLEMENT FOR NON-RESIDENTIAL

HOUSE

The demolition area of Non-residential houses in the project is 103597.46m2 andthe project affects 1890 persons; it affects 41 enterprises and public institutions;affects 18 shops rent from the Food Warehouse , Fuxi Village and Zhenan WasteWater Treatment Co. and 48 persons ( not including in the APs of affectedenterprises) , demolition house area is 705m2 (including in the area of affectedenterprises).

5.3.1. ENTERPRISES AFFECTED

There are 2 subprojects, FRNBI and Zhen'an WWTPIII, affecting 41 enterprises, with103597.46 m2.Among them, FRNBI affects 33 enterprises with 79800.13m2,reinforced concrete building is 26588.23 m2 , brick-concrete 28415.96 m2 , brick-wood20626.52 m2 , and simple structure 4169.43 m2. Zhen'an WWTPIII affects 8enterprises and 23797.33 m2 . Two of which belong to the property right of theGuangdong Modern Motor Trading Market Co. and Zhenan Wastewater TreatmentCo. The former one belong to the Guangdong Modern motor trading Market Co isrented to 5 enterprises, and the later one is rented to one corporation as astorehouse. The total number of affected employees is 256, among which 22 is theon-the-job employees, 234 are the temporary employees and 183 of them is floatingpeople.

In 41 enterprises affected, 6 state-owned enterprises, accounting for 14.6% of wholeenterprises, 14 collective enterprises, 34.2%, 1 joint enterprises, 2.4%, 20 privateenterprises, 48.8%. The affected enterprises are running well.

The enterprise land occupied will be compensated according to the marketevaluation and demolished buildings will be compensated as cost of replacement.Besides, affected enterprises and public institutions will get transition assistance forthe production or operation stopping caused by the project. For enterprises leaser,besides moving allowance and compensation for stopping production loss, they willbe provided rent information of workshop nearby or Foshan industrial zoneaccording to their request. Leasers have multiple options, they are removing intoindustrial zone to continue their business or change other, finding new factory sitenearby to continue their business or change other, stop business if the profit ofenterprises not good.

In FRNBI, in order to reduce land acquisition and demolition, all demolishedbuildings are not important workshops or attachments, like gate house and fence.Limited land acquisition will not affect much the whole operation of enterprises andpublic institutions. So, for the enterprises and public institutions in the red line scope,

14

their attachments will be absorbed to enterprises or rebuilt in near place and all arepartly demolition. So, it needs not to resettle enterprise worker and no one will lostjob or laid-off because of demolition.

As for Zhen'an WWTP Ill , 8 enterprises will be affected, 2 ownership enterprises ofGuangdong Modern Moter Vehicle trade Market and Zhenan Waterwater Treatment

2Plant, the rest ones are leaseholder. The total affected area is 23797.33m , amongwhich 2229 m2 belong to Zhenan Waterwater Treatment Plant, the 15mu acquiredland is previously reserved by this plant, so that there's no problem of employees'installation. The market is a joint-stock company with three shareholders, which areFoshan Huanshi Town Real Estate Development Company, Zhen'an Precinct ofHuanshi Town and Industrial and Commercial bureau of Shiwan District. Thiscompany has 276.76 mu state-owned lands. The main business of company isworkshop lease and annual rent income is 5.2 million Yuan and there are 4manegers in company. The company hope resettle in another place but thepresent situation is the land-use in Foshan municipal Hi-Tech development zone istense, and considering that there are still 231.76 mu industrial land left after 45muland be taken and some affected enterprises can move to industrial zones of Foshanso cash compensation or mix with resettlement in other place are adopted. Withreplacement cost principles, it should include land and factory workshops cashcompensation. Four employees need not resettled especially because they have tomanage 231.76 mu lands for enterprise.

The enterprises affected by Zhen'an WWT are leaser ones and they can rent newworkshops in Foshan industrial zones. After they get notice 3 months in advance,leaser enterprises can gain moving allowance and compensation for immovableequipments and also the shops and workshops rent information. The affectedemployees are temporary workers and they all have professional skills. Relatedagreements were signed between enterprises, enterprises and workers before leaseand working. Agreements said that demolition, operation stoppage, shop close ormoving only needs notice one month in advance.

By investigation, affected enterprises owners agree to arrange former workers tonew factory. Most of workers are glad to move with enterprises and someworkers (15% ) will consider to looking for new jobs. They have skills and areconfident with employment. At the same time, through the analysis to Foshan labormarket demand, the requirement to the workers with skills on water, electricity,casting and forging is huge. The affected worker can find new jobs immediately (nomore than 1 month).

The economy of Foshan is developed and many industrial zones of Foshanmunicipality provide space for enterprises. Up to July, 2005 there are 54 industrialzones in Foshan and total areas are 662km2 and now 200 km2 left. With thecharacteristics of industry development ten zones will be paid much attention:Foshan national Hi-Tech development zone, Chancheng Hi-Tech development zone,

15

Nanhai Hi-Tech development zone, Nanhai software S&T park, Nanhai NationalDemonstration Eco-industrial Park (South China Environmental Protection S&TPark), Shunde Hi-Tech development zone, Sanshui Science &Technology zone,Sanshui-Datang industrial zone, Sanshui Jiangnan industrial zone and GaomingCangjiang industrial zone. Up to July, 2005, only in Foshan ten industrial zones there

M2are 200 km waiting for development. Enterprises can be absorbed totally.

16

Table 5.2 Enterprises and Public Institutions Resettlement

Subproject Enterprises Employee Effect degree Resettlement willing Resettlement OptionsBank part demolition, notTailai wood materials Co., Ltd 33 . Cash compensation part demolition, Cash compensationimprovement affect production

Foshan municipal second light industry sale part demolition, not9 . Cash compensation part demolition, Cash compensationcompany affect production

Foshan municipal second light industry part demolition, not. ~ ~ ~ ~ ~~~~3 . Cash compensation part demolition, Cash compensationcooperation affect production

part demolition, notJinze investment Co.,Ltd 70 l Cash resettlement or replacement part demolition, Cash compensationaffect production

Yishua Foshan polyester Co., Ltd. 189 part demolition, not Cash compensation part demolition, Cash compensationaffect production

part demolition, notFoshan metal recycling Co., Ltd 0 l Cash resettlement part demolition, Cash compensationaffect production

part demolition, notJiaobian residents committee 0 . Cash resettlement part demolition, Cash compensationaffect production

Foshan foodstuff warehouse ( Foshan part demolition, not90 l Cash resettlement part demolition, Cash compensationmunicipal food &oil company) affect production

Guangdong Foshan workers' medicine

college ( Guangdong Foshan sanitation 206 art prodlition Cash resettlement part demolition, Cash compensationaffect productionschool

Dock team of Foshan trucking Co.,Ltd, part demolition, not112 l Cash resettlement part demolition, Cash compensationSecond branch affect production

Foshan Shancheng district foodstuff part demolition, not0 . Cash resettlement part demolition, Cash compensationwarehouse affect production

Foshan municipal spoFts schol of - ;9- part demoition, not Cash resettlement pert demolition, Cash compensation

17

Subproject Enterprises Employee Effect degree Resettlement willing Resettlement OptionsGuangdong affect production

Foshan Xingda development Co., Ltd. (auto 182 part demolition, not182 l ~~~~~Cash resettlement part demolition, Cash compensationmaintenance center) affect production

Foshan wate carriage o., Ltd 92 part demolition, notFoshan water carriage Co., Ltd 92 paft prodution Compensation to rebuild part demolition, Cash compensationaffect production

Shengping sub-district office 0 part demolition, not Cash compensation part demolition, Cash compensationaffect production

part demolition, notShengping house administration bureau 0 . Cash resettlement part demolition, Cash compensation

affect production

part demolition, notNo. 6 construction Company of Guangdong 80 Cash compensation part demolition, Cash compensation

affect production

Foshan fuel Co., Ltd 185 part demolition, not Cash resettlement part demolition, Cash compensationaffect production

part demolition, notZhacha sale department warehouse 6 . Cash compensation part demolition, Cash compensation

affect production

Foshan galvanism factory 114 part demolition, not Cash compensation part demolition, Cash compensationaffect production

part demolition, notFoshan foodstuff Imp &exp company 50 . Cash resettlement part demolition, Cash compensation

affect production

Foshan xinlian aquatic product Co., Ltd 33 part demolition, not Cash resettlement part demolition, Cash compensationaffect production

Foshan plastic trading company Foluo part demolition, not0 Cash compensation part demolition, Cash compensationwarehouse affect production

part demolition, notZhengxin motorbike repairing 3 . Cash compensation part demolition, Cash compensationaffect production

Foshan Csotie civl cngincereng company - 6-C part demolition, not Cash mpenpsaton prt demolition, Cash compcnsation

18

Subproject Enterpnses Employee Effect degree Reseitlement willing Resettlement Options

affect production

part demolition, notShengye motorbike repairing 3 . Cash compensation part demolition, Cash compensationaffect production

part demolition, notFoshan groundwork company 27 . Cash compensation part demolition, Cash compensationaffect production

part demolition, notHuanshi rural credit cooperative 4 . Cash compensation part demolition, Cash compensationaffect production

part demolition, notFuxi village 0 , Cash compensation part demolition, Cash compensationaffect production

part demolition, notHuafeng paper trading Co., Ltd 25 , Cash compensation part demolition, Cash compensationaffect production

part demolition, notFoshan Nanguo trading Co., Ltd 33 , Cash compensation part demolition, Cash compensationaffect production

part demolition, notFoshan material recycling company 0 . Cash compensation part demolition, Cash compensationaffect productionpart demolition, not

Jiaobian residents committee 0 , Cash compensation part demolition, Cash compensationaffect production

compensation for displacement andZhen'an Entire demolition,WWT1-Pm Runhuihua electronics 8 affect production Cash compensation stoppage loss, provide rent information of

industrial zone

compensation for displacement andEntire demolition,Huancheng metal products factory 102 affect production Cash compensation stoppage loss, provide rent information of

industrial zone

compensation for displacement andHuchi hardware machines plant of Entire demolition,Shanchengdistrict7 affectprodCash compensation stoppage loss, provide rent information ofShancheng district 27 affect production

industrial zone

19

Subproject Enterprises Employee Effect degree Resettlement willing Resettlement Options

Entire demolition, compensation for displacement andFoshan Zhengyi packing materials Co., Ltd 57 affect production Cash compensation stoppage loss, provide rent information of

industrial zone

compensation for displacement andEntire demolition,

Foshan Guanghong paper business Co., Ltd 58 affect production Cash compensation stoppage loss, provide rent information of

industrial zone

Part demolition, private/share hold, workhouse rent, CashGuangdong modern vehicles trading market 4 compensation or resettlement in other compensa

affect workshop rent stoppage lossplaces

Part demolition, private/share hold, workhouse rent, CashZhen'an Wastewater Treatment Plant 0 aft wrsolp rentl cmes owner of the project, no affecting peaple0 affect workshop rent compensation

compensation for displacement andEntire demolition, noNo.1 Construction Company 0 affect production Cash compensation stoppage loss, provide rent information of

industrial zone

Total 1890

20

5.3.2. SHOPS AFFECTED

FRNBI and Zhen'an WWTP affects 18 shops and 48 persons, and 17 shops with 46employees are affected by FRNBI. Theses shops houses are rented from the freerooms (705 m2,included in the area of house demolition of affect enterprises), offoodstuff warehouses ,Fuxi village and Zhen'an WWTP. Therefore, house demolitioncompensation will be given to house owners and leasers can only get movingallowance, stoppage loss compensation and equipment loss will be compensated asreplacement cost. Most leasers and leaseholders have agreements that leasersmust move out without conditions once municipal demolition but leaseholders mustnotice leasers before one month. Besides of these, related information should beprovided to help them find business place. Before maturity if leasers denyterminating contract, owners should compensated with replacement and continuethe contract.

Cash compensation is accepted by affected shops. Owners can buy new shops forrent or business with compensation and former leasers have prior lease.

By investigation: most shops choose cash compensation and only one shopchooses resettlement in other place. Shop resettlement shows in Table 5.3.

Table 5.3 Shop Rehabilitation Plan

Restoration PlanShops Rebuild in other

place Cash compensation

Foshan sale department of Kaiping municipality water pump 'factory

Motorbike fittings &repairing of Liang's 'Mingliu barber shop _

Meijiajing barber shop

Bick repair of Fang's 'Yuemu bird shop

Changda Auto sale

Hardware shop

Gudeli electric machine sale shop X4

Xunda electric tools fittings &repairing shop

Hunan Shiduo

Foli water pump shop

LiangYuan grocery shop l

Yuanzheng water pump shop of Shancheng district '4

Jingyi auto repairing shop 'Zhizhan Mechanical and Electrical tools sale shop 4

21

Construction materials shop of He's | |Shiduo shop l

The business of Foshan is developed and many workshops are rented or leased.Only the investigation in Foshan on line on 3rd, June, 2005, there were 14organizations issuing rent information in Shancheng District and rent area was over5000m2.

5.4. RESTORATION PLAN TO AFFECTED VULNERABLE GROUPS

Project involves two types of vulnerable group: unemployment 3 persons and the oldlive alone one person.

Vulnerable group can share same resettlement standard and restoration measureswith the same type and moreover they have following rights:

4 Displaced persons who choose cash compensation or property rights transfer butcan not solve house problem can apply cheap-lease room.

. Community will give priority to new displaced person in housekeeping and shopservice.

+ The elderly and the sick or disabled persons in vulnerable group will be arranged inlower floor.

5.5. INFRASTRUCTURES AND GROUND ATTACHMENTS AFFECTED

Project organization should compensate affected infrastructures and groundattachments to property rights organizations for them to rebuild. The restorationmeasures for demolished facilities should be planned and arranged in advance. Inactual operation, measures should suit to differing conditions to make sure the safety,effectiveness, no delay and inerrability and minimize the adverse effect to peoplenearby. As for affected civil public infrastructures, demolishers do demolition on theground of project working drawings. No effect to project construction is prerequisiteto minimize displacement, where feasible. As for the demolition of affected pipelines,demolishers must guarantee not to affected residents (including unnecessarydisplaced persons) along the pipelines and should first rebuilding (or displacement)then demolition.

22

6. ORGANIZATION AND IMPLEMENTATION SCHEDULE

6.1. ORGANIZATION

Foshan Pearl River integrated improvement project financed by World Bank officeguides the preparation of resettlement plan and land acquisition implementation andcontract with World Bank. At the same time, subproject offices are also set up to takein charge of each resettlement preparation, land acquisition and demolitionadministration, internal supervision and monitoring. Organizations and agencies andits responsibilities of each subproject see Table 6.1 resettlement organizations andits responsibilities.

After approval of World Bank, old city rebuild office of Chancheng District undertakesurban house demolition.

Table 6.1 Resettlement Organizations and Its Responsibilities

Administrative LeadingAdministritut e Responsibilities member Telephonei nstitution member

Pearl RiverCompreensv To guide subproject resettlement plan 0757-83320492

CReensvative andWB preparation, land acquisition and 13703065670Renovation and WBdemolition implementation, to contact with bizgcn@yahoo.com.cnFinanced Project office ,Bi Zhigang

of Foshan municipal WB, prepare resettlement policy, plan and Foshan Environment ProtectionoenFoshan municipal implement them. Capital allocation and Bureau, 12, Dongxia road,environmental

monitoring its use; internal monitoring foshanprotection bureau

0757- 83354387Fosha munia To preparing resettlement plan, ydghk@fsgt.gov.cn

Foshan municipalsupervisees its implementation and solve 13504135555national land resources LagYnlproblems, to hand out certificates of Transportation building, 28,bureaudemolition, land use or construction. Jihuawu road, Chancheng

district, FoshanIn charge of resettlement investigation, 0757-83323504

Fosha muniervacip resettlement plan preparation, land 13322848433bureau acquisition and implementation of Fenjiang ljf@fswater.gov.cn

River North Bank Improvements. 113, Jinyu road, FoshanIn charge of resettlement investigation, 13809212249

Foshan municipal resettlement plan preparation, land Liu Yanhui evaliu_0106@yahoo.com.cnwater supply company acquisition and implementation of Zhen'an Water supply building, 16,

WWT and NSDC Tongjixi road, Foshan

23

6.2. IMPLEMENTATION SCHEDULE

In accordance with project implementation schedule, project will be finished in stagefrom 2006 to 2008. The schedule of land acquisition, demolition and resettlementinterlinks the construction plan of subproject. Land acquisition, demolition andresettlement task begins in Jan, 2006 and ends in Dec, 2008. Schedule principle is:i) land acquisition and demolition should be finished one month before land using.The beginning is decided with the request of task; ii) enough time should be left forland acquisition, demolition and resettlement task before project construction.

Construction project will be finished in stage from Oct., 2006 to Dec, 2008, so landacquisition, demolition and resettlement task will begin from Jun., 2006 to Dec, 2008.Detailed schedule and activities see Table 6.2, resettlement schedule see figure 6.1.

Table 6.2 Subproject Land Acquisition Schedule

Project Construction time Resettlement

implementalion time

FRNBI 2006.10-2008.12 2006.3-2006.12

FRWDSD 2007.6-2008.12 2007.1-2007.5

Zhen'an WWTPIII 2007.1-2008.12 2006.8-2006.12

NSDC 2006.8-2008.7 2005.1-2006.4

24

Figure 6.1 Resettlement schedule

No . T a sks | Dur at i on | b e gi nni ng | finish 20054 20064No._ Tak1Dr 02iorIbeinig0E3 0Q4 I0Q1 0 2 0 3 0 4 j1 Preparation of RAP 170 d 2005-5-10 2005-12-302 Establish Foshan Preal River WB PMO 5 d 2005-5-10 2005-5-1 53 Decide land acquistion&demolition scope 5 d 2005-5-1 6 2005-5-204 Conductthe social economic and resettlement 73 d 2005-5-23 2005-8-31

survey ry5 Consult and negotiate with Aps and related 138 d 2005-5-23 2005-11-30

government6 Compile the RAP 1 60 d 2005-5-23 2005-1 2-307 FRNBI Siiliprojecl 219 (1 2006-3-1 2006-12-28S Hold mobilization meeting& disclose policies 23 d 2006-3-1 2006-3-319 Issue land acquisition&demolition bulletin 20 d 2006-4-3 2006-4-28

10 Discuss and sign compensation&resettlement 20 d 2006-5-1 2006-5-26agreement

11 Balance and distribute compensation fee 33 d 2006-5-29 2006-7-1112 Rebuild the infrastructure 167 d 2006-5-11 2006-1 2-28 . . ____

25

No. Tasks |Duration beginning finish | 2005I ] 2006* 2007* 2008I_____ 0 I WTq IQ3 IQ4 lJj3 Q 2 0Q3 0Q4 IQ1 0Q2 0Q3 Q4 0Q1 0Q2 0Q3 0Q4

13 FRWDSD Subproject 133 d 2007-1-1 2007-7-3 _14 Hold mobilization meeting& disclose policies 23 d 2007-1-1 2007-1-3115 Issue land acquisition&demolition bulletin 20 d 2007-2-1 2007-2-2816 Discuss and sign compensation&resettlement 21 d 2007-3-1 2007-3-29

agreement17 Balance and distribute compensation fee 18 d 2007-3-30 2007-4-2418 Rebuild the infrastructure 63 d 2007-4-9 2007-7-319 ZheiilŽnWWTPIII Subpl)ioject 108 d 2006-8-2 2006-12-29 -r20 Hold mobilization meeting& disclose policies 23 d 2006-8-2 2006-9-1 21 Issue land acquisition&demolition bulletin 20 d 2006-9-4 2006-9-2922 Discuss and sign compensation&resettlement 21 d 2006-1 0-2 2006-1 0-30

agreement23 Balance and distribute compensation fee 19 d 2006-1 0-31 2006-11-2424 Rebuild the infrastructure 77 d 2006-9-1 4 2006-1 2-2925 NSDC Subdptoject 346 di 2005-1-3 2006-4-26 t26 Hold mobilization meeting& disclose policies 21 d 2005-1-3 2005-1-30 127 Issue land acquisition&demolition bulletin 21 d 2005-1-3 2005-1-30 N28 Discuss and sign compensation&resettlement 22 d 2005-1-30 2005-2-28 ,1

agreement29 Balance and distribute compensation fee 24 d 2005-3-1 2005-4-130 Rebuild the infrastructure 237 d 2005-6-1 2006-4-2631 M&E 656 d 2006-1-9 2008-7-7 _ _ __ _

26

7. BUDGET AND CAPITAL SOURCES

7.1. BUDGET

All the expense happens in land acquisition, demolition and resettlement is includedin project budget. Project budget includes three categories: urban house demolition,ground attachments demolition and service charge for demolishers, includingpermanent land acquisition, temporary land acquisition, urban residential housedemolition, affected enterprises, public institutions, shops and infrastructures&ground attachments. The calculation of stipulated fee and tax as follows:investigation &design fee is the 3% of above three categories expense; monitoringand evaluation fee is 1% ; implementation administrative expense is 3%; skill trainingcalculate as the 1% and PPF is the 10%.

The total resettlement budget is 251 million Yuan and 23.53% of project investment:land compensation 52.51 million Yuan and accounting for 21%, house demolitioncompensation (residential and enterprise house) is 135 million Yuan and is 54 %;Total resettlement expense is included in project cost. Each project budget shows intable7. 1.

27

Table 7.1 Project Resettlement Compensation Budget (Unit: 1000OYuan)

301. 0-5 31(6. (1)

1.1.1 compensation for land and resettlement mu 5 30 195 200.00

Fish Pond mu 6.5 30 195 195.00

Waste land mu 4 1.25 5 5.00

1.1.2 young crop compensation mu 0. 3 30 9 9.001.1.3 Taxes Fee mu 3. 2 30 97.05 97.05

3451.23 1493.85 4945.08

1.2.1permanent state-owned land acquisition mu 7.5 5 37.50 37.50

1.2.2 land filling fee mu 0. 3 5 1. 50 1. 501.2.3 industral land compensation (second type) m

2 32. 33 106. 75 3451. 23 45 1454. 85 4906. 08I ...",.. ....

13500. 6M2 ~~0

_=== m2 10355.43 3145.19 2m2 489. 4 489. 40

2.1.1compensationfordifferent housestructure m2 383.22 383.22

brick-concrete m2 0. 21 1430. 12 300. 33 300. 33

brick-wooden m2 0. 2 414.46 | 82.89 82.89

2.1.2 house displacement & resettlement compensation 11.71 11.71Moving allowance(S5persons) HH 0. 06 8 0. 48 0. 48

Moving allowance (>5persosns) HH 0. 08 2 0.16 0. 16

28

Temporary transition fee (for 6 months) m' °. 006 1844. 58 11. 07 11. 07

2.1.3 residential house attachments compensation 0 2.24 2.24

Telephone 0. 02 3 0.78 0. 78

CATV HH 0. 02 lI 0.2 0.20Air conditioner 0. 02 63 1.26 1. 26

2.1.4House decoration compensation(estimation) m2 0 05 1844. 58 92. 23 92. 23

33.6 33.602.2.1 shop moving allowance 5. 1 5. 10

construction area >200 room 0. 4 1 0.4 0.40

construction area 100-200 room 0. 3 15 4. 5 4. 50

construction area 50-100 room 0. 2 1 0. 2 0. 20

construction area<50 room 0. 1 0 0 0. 00

2.2.2 temporary resettlement subsidy (6 months) m2 0 06 475 28. 5 28. 50

12350. 0

9832.43 2517.64 7

2.3.1 workshop/warehouse compensation 4988. 42 1257. 32 6245. 74

frame m2 0 08 26588.23 2127.06 2127.06

brick-concrete m2 0. 06 28415. 96 1704. 96 20955.33 1257. 32 2962. 28

brick-wooden m2 0. 05 20626.52 1031. 33 1031. 33

simple m2 0. 03 4169. 43 125. 08 125. 08

2.3.2 workshop/warehouse moving allowance 56 3.00 59.00

29

construction area >200 0. 4 62 24. 8 6 2. 40 27. 20construction area 100-200 0. 3 25 7.5 2 0.60 8.10

construction area 50-100 0. 2 93 18.6 18.60

construction area<50 0.1 51 5.1 5.10

2.3.3 temporary resettlement subsidy (6 months) m2 0. 06 79800. 14 4788. 01 20955. 33 1257. 32 = 6045 33

627.55 627.55

2.4.1compensation for different house structure 596.82 596.82

brick-concrete m2 0. 21 2842 596.82 596.82

2.4.2 moving allowance HH 0. 06 228 13.68 13.68

2.4.3 temporary transition fee (6 months) m2 0. 006 2842 17.05 17.05

136.05 1243.15 1120 0 2499.2

21250. 9Subtotal 1-3 13947.71 5882.19 1120 301.05 5

4 investigation &designing fee 3% 418.43 176.47 33.6 9.03 637.53

5 M&E fee 1% 139.48 58.82 11.2 3.01 212.51

6 implementation administration fee 3% 418.43 176.47 33.6 9.03 637.53

7 training fee 1% 139.48 58.82 11.2 3.01 212.51

8 Contigences 10% 1394.77 588.22 112 30.1 2125.09- _3_ 0 __

30~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

7.2. ANNUAL INVESTMENT PLAN

Annual investment plan is decided according to project land acquisition andresettlement. Land acquisition and resettlement annual investment plan of Foshanmunicipality Pearl River overall treatment project financed by World Bank shows intable 7.2.

Table 7.2 Annual Investment Plan of Pearl River Overall Treatment Project

Unit: 10,000 Yuan

Year 2006 2007 2008 Subtotal

Investment 15045.67 7522.83 2507.61 25076. 11

Proportion (%) 60% 30% 10% 100%

7.3. CAPITAL SOURCES AND ALLOCATION

With the project timetable, resettlement capital sources are enterprises and financeallocation.

Table 7.3 Resettlement Capital Sources

Unit: 10,000 Yuan

Among them

Total Grant of

Project investmen Finance World Domestc Global Resettlemen Percenta

t allocation Bank p bank environmen t fund ge

t fund

FRNBI 46282.02 38005.52 8276. 5 16458.29 35.56%

FRWDSD 19822.99 10901. 99 8921 1321.60 6.67%

Zhen'an26864. 17 6468. 17 4100 15000 1296

WWTPIII 6940. 98 25.84%

NSDC 13600 5800 8803 355. 24 2.61%

Subtotal 106569. 2 55375.68 27097. 5 8803 15000 1296 25076.11 23.53%

31

8. PUBLIC PARTICIPATION, CONSULTATION AND APPEAL

PROCEDURES

8.1. PUBLIC PARTICIPATION

According to national, provincial and municipal policies and regulations about landacquisition and demolition, project should protect the legal rights of displacedpersons and enterprises reduce the discontent and dispute. So, at the rebuild andconstruction of project, displacement and resettlement policy and implementationrules, resettlement plan should be prepared well to achieve the goal of resettlementsuccessfully and this project pays much attention to consult with displaced personand listen to their opinions on resettlement policy, plan and implementation.

Table 8.1 Public Participation Procedure

Time Place Attendants Contents Remarks

Project office and Project office and affected Resetlement, project impact insocioeconomicprjc imat n

2005.1 affected persons residents and enterprise socioeconomic

locus workers investigation outline and investigationproject impact scope

Foshan water conservancy

2004.12 Jiangmen of bureau, public utility bureau,

Guangdong development& reform bureau

and water supply company

Finance bureau, waterResettlement and

2004.11 Guangzhou road conservancy bureau, water desetion andextension office supply company and WB discustion

office ~~~~discussionoffice

Staff training forAll person who took part in socioeconomic

2005.5.14 socioeconomicinvestigation this investigation investigation traininginvestigation

ProjectProject ~~~~~~~~~To reflect project problems

2005.6 corresponding Project organizations solethemmeetings ~~~~~~~~and solve themmeetings

Projct oficeandProject office and demolitionProject office an office (many times) Compensation and primary consultation in2005.6 affected persons off (m any tim ona resettlement policy and resettlement plan

locus Project office and national resettlement original plan preparationland bureau(many times)

32

Time Place Attendants Contents Remarks

Project office and affected

persons

ComplementaryProject office and Specific problems in

Project office and affected consolation to some2005.7.3 affected persons resettlement policy and

locus persons plan problems when

lsresettlement plan decided

During the resettlement plan preparation, subproject land acquisition sectors,

implementation agencies and designing organization announced project

resettlement plan to affected persons in different ways and through many channels.

See Table 8.2. At the same time, they hear the opinions of displaced persons and

consult with them.

Table 8.2 Policy Disclosure Procedure

Disclosure PlaceFiles Disclosure way and language time

Foshan house demolition policy Chinese 2003 to now Foshan land bureau website

Foshan environment protectionProject introduction Chinese 2005.1

bureau website

general introduction of project Foshan environment protectionChinese 2004.12

demolition bureau website

Resettlement plan announcement Chinese, newspaper 2005.1 Foshan daily

notice

Pearl River daily News in February

18, 2006, and the resettlement

Resettlement plan report Chinese& English, report 2006.3 report is put into the website of WBoffice, \water conservancy bureau,

water supply company, and

Foshan.gd.cn

AffectedResettlement information booklets Chinese, information booklets 2006.3

households/enterprises/shops

Pearl River daily News in April 30,Final Resettlement plan Chinese 2006.42006,

8.2. APPEAL PROCEDURES

Grievance mechanism is established during the project resettlement plan workout

and implementation. Four phases of grievance as follows:

Phase 1: Displaced persons can appeal by verbal or paper way to land acquisition &

demolition implementation institution (old city reconstruction office of Chancheng

33

District government) if they are not satisfied with resettlement plan. For verbal appeal,

office should record in written form and solve the problems in two weeks;

Phase 2: If displaced persons are still not satisfied with the decision of Phase 1, they

can appeal to Chancheng District government and Nanhai District government after

receiving decision notice. Two governments should transact it in two weeks;

Phase 3: If displaced persons are still not satisfied with the decision of two district

governments, after receiving decision notice, affected persons can appeal to Foshan

municipal national land resource bureau according to measures of Foshan

municipality on land administration and house demolition. Foshan national land

resource bureau should give decision in 30 days;

Phase 4: If displaced persons are still not satisfied with the decision of Foshan

national land resource bureau, after receiving decision notice, affected persons can

appeal to Foshan municipal government for administration review and also can sue

at law of civil procedure in three month.

Displaced persons can prosecute any respects about resettlement including

compensation standard. Displaced persons should be informed about their rights

pertaining to grievance through meetings or other ways. Media will be used for

propaganda and advises and suggestions about resettlement will be arrange to

information terms for resettlement organizations at different levels to deal with.

Appeal and grievance to every agencies or organizations is free and the reasonable

cost from it will be expended by contingency of project land acquisition& demolition

offices.

34

9. MONITORING AND EVALUATION ARRANGEMENT

To successful implementation of demolition and resettlement plan and the goalachievement, monitoring and evaluation are done to land acquisition, demolition andresettlement according to World Bank OP4.12 Involuntary Resettlement and Guideto Resettlement Monitoring and Evaluation of China Project Assisted by World Bank.Monitoring is divided into twp parts: internal monitoring of resettlement organizationsand external one. Monitoring and evaluation will begin in Jan, 2006 and end in Dec,2008 and internal and external monitoring report will be handed in to World Bankevery half year.

Foshan municipality Pearl River comprehensive treatment project financed by WorldBank office take in charge of internal monitoring and project offices, landadministration sectors and house demolition sectors implement together to makesure that land acquisition and demolition will be undertaken according to planprinciples and schedule by implementation agencies. The purpose of internalmonitoring is to keep good responsibility for resettlement agencies duringimplementation.

External independent monitoring and evaluation is the activity that independentmonitoring institute monitors and evaluates land acquisition, demolition andresettlement. NRCR of Hohai University undertakes external monitoring of thisproject. The contents of external monitoring are: responsibility of resettlementnetwork, land acquisition and demolition, implementation and compensation ofresettlement, demolition and restoration of displaced persons, enterprises and shops,investigation and analysis to living standard of resettlers. Independent monitoring isthat the institution which is independent of resettlement implementation agencieschecks and evaluates all the implementation activities of land acquisition, demolitionand resettlement from a long-term and overall view. Independent monitoringinstitution, by following the project resettlement activity, will evaluate if resettlementundertakes national relevant laws or regulations about land acquisition, demolitionand resettlement, if accords with World Bank OP4.12 Involuntary Resettlement; ifliving standard of displaced persons improves or at least keep the same level ofpre-project. Monitoring institution will give suggestions to relevant sectors aboutproblems found in monitoring and help to solve these problems.

35

.

THE WORLD BANK LOANFOSHAN PEARL RIVER COMPREHENSIVE RENOVATION PROJECT

-NAME OF REPORT - RESETTLEMENT ACTION PLAN

10. ENTITLEMENT MATRIX

Impact Affected persons Compensation and Resettlement Policy compensation rateRural collective agricultural land and non-agricultural land will becompensated as [2001]023 file of Foshan governmentCompensation includes compensation to land, resettlement and Farmland: 65000 Yuan/mu

Affected village ground attachments; young crop compensation. Land compensationbelongs to rural collective organizations.Resettlement fee must be used for labor resettlement and cannot be

Permanent land embezzled.acquisition

Receiving young crop compensationReceiving training opportunity

Affected farmers Receiving job information 3000yuan/muReceiving sharing profits of village investment

For State-owned land paid use, after getting Foshan municipal or Type Compenration rate

owner (Trnsferor) county construction approval construction agent can consult with 2 400002-280000yuanImuowner (Transferor) cdemolished organizations. After the evaluation to these enterprises 2 286668-200670yuan/mu

State-awned land paid by qualified land evaluation agency, paid transfer can be done.transfer Enterprises and shops have enough time to fine new place for

business since notice one month ago. Implementation agency provides Moving allowance, compensation as replacement cost toleasers rent information and should notice temporary workers three months in equipment can not be moved

advance and provide employment information to help them get newjob.

Compensation for temporary rural collective land acquisition as use, Paddy field 15o0Yuan/mutime and loss, including young crop and land restoration compensation. Vegetable plot 2500Yuan/mu

Temporary land Land ownership State-owned land taking by laying pipes is not compensated. Ground Dry land lo 0OYuan/muacquisition attachments are compensated as replacement cost. After construction, Dry land (incluangmu

project party should restore them as form standard and scale. Fish pond (including pond drying fee)Restoration expense can be included in project construction expense. 2500Yuan/mu

SOGREAH - N' AFFAIRE -FILE REF APRIL, 2006 PAGE 36

4

THE WORLD BANK LOANFOSHAN PEARL RIVER COMPREHENSIVE RENOVATION PROJECT

-NAME OF REPORT - RESETTLEMENT ACTION PLAN

Impact Affected persons Compensation and Resettlement Policy compensation rate(1 ) compensation and resettlement of demolition

Cash compensation or property rights house replacement with samevalue as cash compensation; for residential house demolition, on thebase of construction area, not calculate different price in resettlementarea to replace house in other places. Compensation and resettlement Residential buildingsway can be chose by demolished persons and house leasers frame2000-2400 yuan/m2according to regulations. brick-concrete 1900-2300yuan/m2

Residential house (2) residential house cash compensation. Cash compensation should brick-wood 1800-2200yuan/m2demolition Property nghts owners be decided by replacement cost according to house evaluation price of simple 500yuan/m2

real estate market and demolished house construction area. moving allowance family is one unit, less than 5 persons(3) moving allowance and related expense. Demolishers should pay 600Yuan; more than 5 persons: 800Yuan11

moving allowance, equipment moving fee, temporary resettlement fee temporary resettlement subsidy 1OYuan/m*6monthin transaction period to demolished persons and leasers. Andtemporary resettlement fee should be added since the monthexceeding the limit date.

Foshan industrial land priceType compensation standard

As Foshan municipal policy, warehouse, workshops and shops adopt 1 400002-280000yuan/muhouse and land separate compensation. The houses of enterprise 2 323335-226330yuan/muand shop will be compensated with the principle in the minutes 3 286668-200670yuan/muconcerning demolition compensation plan of Dafu road south extension compensation standard of shops, workshop, warehouseproject. structure compensation standardThe land of enterprises and shops will be compensated as land type 2frame 750 Yuan/ m2and evaluation prce. The loss of stoppage and equipment moving 2brick-concrete 600Yuan/ m2should be compensated too. 3bick-wood 350-50OYuan/m2

Workshop, warehouse The rights and interests, including salary, medical and social 4simple 150-25OYuan/m2and shop demolition Enterprises, shops insurance, bonus and prize of workers will not be affected during 5temporarylbuildings 50-1 ooYuan/m2

, ~~~~displacement. moving allowance of shops, workshop, warehousediplceen. construction area unit standardWorkers will not loss job because of displacement Temporary workers <50sYuan/one unitYuandarshould be noticed three months in advance and provide employment '50 Yuan/one 1000Yuan/m2information to help them get new job. 100-2 0 Yuan/ one 2000Yuan/m2Demolition agency should notice in advance to shop owners and 100-20Yuan/ one 3000Yuan/m2provide rent information on same area shop, which will help them find 2200Yuan/ one 4000Yuan/m2new place to continue their business. Moving allowance should be temporary resettlement subsidy(Based on 6 months)given to them. Type unit standard

Office building Yuan/m2. month 30Workshop, warehouseYuan/m2. month 15

____________________ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~Shp _______________________________________ hosYuan/in. month2 80-1 00Venerable group Besides above policies, affected vulnerable group can enjoy Shops _Yuan_m_______________

t notice of Foshan municipal house demolition compensation standard, [1998]35 Foushan real estate

SOGREAH - N° AFFAIRE - FILE REF APRIL, 2006 PAGE 37

THE WORLD BANK LOAN

FOSHAN PEARL RIVER COMPREHENSIVE RENOVATION PROJECT

-NAME OF REPORT - RESETTLEMENT ACTION PLAN

Impact Affected persons Compensation and Resettlement Policy compensation ratefollowing:(1 ) cheap-lease house demolition. Demolishers should provide

standard houses for displacement and reduce house price extraresettlement area.(2) demolished persons and leasers who are lonely elderly, disabled

or orphan should be given standard house to displacement.(3) skill training to labors of vulnerable group families and to provide

employment information and guide.(4) in project implementation, considering to employ the children of

vulnerable group families to do unskilled work.(5) demolishers should help the moving of vulnerable group.

Ground attachments and Property rights owners Project agency compensate to ownership organizations. Compensate at replacement cost

SOGREAH - N° AFFAFRE - FILE REF APRIL, 2006 PAGE 38