PRC: Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project

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1 Jiangxi Fuzhou (RRP PRC 44007) June 2012 PRC: Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project Prepared by Fuzhou City Investment and Development Company for the Asian Development Bank.

2 This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3 PPTA 7595-PRC: Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project Fuzhou City Investment and Development Company May 2012

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5 CURRENCY EQUIVALENTS (as of 25 June 2012) Currency unit Yuan (CNY) CNY1.00 = $ $1.00 = CNY ABBREVIATIONS AAOV average annual output value ADB Asian Development Bank APs affected persons CNY Chinese yuan DRO demolish and resettlement office EA executing agency FB financial bureau FDRC Fuzhou Development and Reform Committee FIDC Fuzhou Investment Development Co., Ltd. FMG Fuzhou Municipal government FPMO Fuzhou project management office FUIDC Fuzhou Urban Investment and Development Company FUMRB Fuzhou Urban Management Regulatory Bureau GDP Gross domestic product HH Household IA implementing agency JPO Jiangxi Project Office JPMO Jiangxi Project Management Office LAR land acquisition and resettlement LRB land and resources bureau M&E monitoring and evaluation PMO project management office PRC People s Republic of China PRMO Project Resettlement Management Office RC resettlement community RO resettlement office RP resettlement plan VG vulnerable group WEIGHTS AND MEASURES mu ha ha Hectare km Kilometer km 2 square kilometer m Meter m 2 square meter m 3 cubic meter t ton

6 NOTE In this report, "$" refers to US dollars. This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. ii

7 Contents KEY TERMINOLOGY EXECUTIVE SUMMARY I. PROJECT INTRODUCTION 1 A. Background 1 B. Project Description 1 C. Impact Area 4 D. Preparation of the 4 II. RESETTLEMENT IMPACT 6 A. Measures to Minimize Land Acquisition and Resettlement Impacts 6 B. Project Impact Survey 6 C. Findings of the Resettlement Impact Measurement Surveys 7 D. Impact Assessment 12 III. SOCIOECONOMIC PROFILES OF THE IMPACTED AREAS 14 A. Social and Economic Status of the Impacted Areas 14 B. Socioeconomic Profiles of the Affected Towns and Villages 15 C. Analysis of Affected Women in Project Areas 25 IV. LEGAL FRAMEWORK AND RESETTLEMENT POLICIES 27 A. Applicable Laws & Regulations and Decrees 27 B. Relevant Clauses of the Laws & Regulations and Decrees 27 C. The ADB Involuntary Resettlement Policies 33 D. Policy Differences between ADB and PRC 34 E. Compensation Rates Adopted for the Project 36 F. Entitlement Matrix 37 V. RESETTLEMENT SCHEME AND INCOME REHABILITATION 40 A. Resettlement Targets 40 B. Resettlement Population 40 C. General Resettlement Strategy 41 D. 42 E. Safeguard Measures for Resettling Vulnerable Groups 51 F. Gender Issues during Resettlement and Income Restoration 52 VI. PUBLIC PARTICIPATION AND CONSULTATION 53 A. Objectives of Consultation and Participation 53 B. Disclosure of Resettlement Policy and 59 VII. GRIEVANCE REDRESS MECHANISMS 61 A. Grievance Channels 61 B. Principle of Grievance Treatment 62 C. Reply to Grievance 62 D. Record, Feedback and Follow-up of Grievance 62 VIII. INSTITUTION AND RESPONSIBILITIES 64 A. Institutional Setup 64 B. Responsibilities 65 ii

8 C. Capacity Building 66 IX. MONITORING AND EVALUATION 69 A. Internal Monitoring 69 B. External Resettlement Monitoring 70 C. Community Monitoring 73 D. Post Assessment of the Resettlement 73 X. RESETTLEMENT BUDGET 74 A. Land Compensation 74 B. Temporary Occupied Land 75 C. Compensation for Housing and Attached Facilities 75 D. Cost for Resettlement Site Preparation 76 E. Cost for Decoration 77 F. Subsidy for Temporary Housing 77 G. Relocation Cost 77 H. Cost for Incentive 77 I. Cost for Property Management 78 J. Vulnerable Group Subsidies 78 K. APs Compensation Costs 78 L. Special Facilities Compensation 78 M. Other Costs 79 N. Land Taxes and Land Administration Fees 79 O. Basic Contingency 81 P. Total Investment Budget for Resettlement 81 XI. RESETTLEMENT PLAN IMPLEMENTATION PROCEDURES AND SCHEDULE 83 A. Activities Prior to Resettlement 83 B. Activities during Resettlement 83 APPENDICES 87 iii

9 KEY TERMINOLOGY 1. The (RP) was prepared according to the relevant laws and regulations of the People s Republic of China (PRC), Jiangxi Provincial Government, and the Asian Development Bank (ADB) concerning involuntary resettlement. The purpose of the RP is to present a resettlement and rehabilitation action plan for the project affected persons (APs) so as to ensure that the APs will benefit from the proposed project and improve their standard of living or at least rehabilitate their standard of living after the completion of the project. The resettlement plan is a legally binding agreement on land acquisition and resettlement implemented by the Fuzhou municipal government and the Fuzhou Investment Development Company as the project implementing agency. The company will be responsible to implement the RP by providing adequate funding and ensuring accurate execution by relevant agencies of Fuzhou municipal government. 2. Displaced Persons. There are three categories of Displaced Persons : (i) persons with formal legal rights to land lost in its entirety or in part; (ii) persons who lost the land they occupy in its entirety or in part who have no formal legal rights to such land, but who have claims to such lands that are recognized or recognizable under nation laws; and (iii) persons who lost the land they occupy in its entirely or in part who have neither formal legal rights nor recognized or recognizable claims to such land. 3. In case of first two categories of displaced people, the borrower/client is required to compensate either in way of adequate and appropriate replacement land and structure or in cash at full replacement cost for the losses as well as relocation assistance. For the third category, compensation is provided for the loss of assets other than land at full replacement cost. Under the third category, only those displaced people are eligible for compensation who occupied the land or structure in the project area prior to the cut-off date. 4. The Definition of Resettlement. Resettlement refers to a re-arrangement so that APs can benefit from the project. It includes: (i) relocation of living sites; (ii) creation of new jobs for the persons whose employment is affected; (iii) rehabilitation of or compensation for affected land, working space, trees, and infrastructures (iv) rehabilitation of the APs whose living standard of living or quality of life is affected due to land acquisition and resettlement; (v) rehabilitation or compensation provided to affected individuals or public enterprises; and (vi) rehabilitation of affected cultures or common properties. 5. The Definition of Rehabilitation. Rehabilitation refers measure to assist APs in continuing their production activities and/or improve or at least maintain their standard of living (relative to the level before the project). The purpose of a resettlement plan is to ensure a proper resettlement and rehabilitation of the APs, compensate for their losses, and maintain or improve their standard of living. In order to achieve this purpose, the plan provides measures to restore APs incomes and maintain their standard of living. Affected productive resources including shops and enterprises, public properties, infrastructure, and cultural properties will be improved or at least rehabilitated to at least maintain the original level before the project. ii

10 6. Cut-off Date. The cut-off date refers to the date when detailed measurement survey is conducted, and all those whose assets were affected within the scope of impacts will be entitled for compensation and rehabilitation in accordance with the RP. 7. Definition of Replacement Cost. Replacement Cost refers to a method of asset evaluation that uses market price to replace lost property or uses its closest equivalent, adding any transaction cost, for example, administration cost, tax, registry fee and the cost for gaining (owning or using) qualification. If the standard is not stipulated in any national law, a replacement cost is necessary to be complemented to it. The replacement cost is determined on the basis of the higher one of the current market price and the market price prior to property lost. In the absence of the functional market, a compensation structure shall be used to make the living level of APs recover at least to the level when losing property, moving or limiting use (of the property).the replacement cost for most of the properties to be lost can be determined; however, under a system of collective land ownership where market price does not exist, Chinese government has adopted complementary means besides the compensation for land to be lost resettlement subsidies can be increased (as FMG did, not limited to the stipulated times of average annual output value of land to be acquired), and reemployment training is provided for APs. In short, the key objective is to ensure that land loser s livelihood and income level at least main the same level as that before the project or improved. iii

11 EXECUTIVE SUMMARY E1. Description of the Project and Land Acquisition and Resettlement Impacts 1. Jiangxi Fuzhou Urban Infrastructure Improvement Project consists of four components: (i) station access roads, (ii) Phase 2 of the Fenggang River Improvement component, 1 (iii) an urban transport hub, and (iv) bus rapid transit (BRT). For these four components, a total of mu of land will be acquired, including mu of farmland, affecting a total of 1843 households and 7461 persons from 6 villages in both Chonggang Town and Zhuling Sub- District. A total of 98, m 2 of houses will be demolished causing relocation of 569 households with 2450 persons from 3 villages. Land acquisition and house demolition together will impact a total of 1843 households with 7461 persons. Of the affected peoples, 688 households with 3012 persons will lose more than 50% of land; 529 households with 1805 persons will lose 20-50% of land; and 173 households with 733 persons will lose 10-20% of their land assets. In total 1390 households with 5550 persons will lose more than 10% of their land assets. The project, including related land acquisition and resettlement, will be implemented by Fuzhou Urban Investment Development Company (FCIDC). The project cost is estimated CNY1.21 billion and will be partially financed by a loan of US$100 million from the Asian Development Bank (ADB). E2. Resettlement Principles and Entitlements 2. The (RP) was prepared in accordance with policies at national, provincial, and municipal levels related to land as well as ADB s Safeguard Policy Statement (2009). Based on land policies and laws of the People s Republic of China (PRC), the resettlement principles established for project subcomponents included: (i) compensation and entitlements provided to affected persons (APs) will be adequate to improve their living standard (ii) all APs will be provided with resettlement assistance and fair compensation; (iii) all APs will be informed of the eligibility, compensation standards, livelihood, and income restoration plans, and project schedule to ensure that they will be able to participate in the RP implementation process; (iv) no land should be acquired unless replacement land or sufficient compensation for resettlement is provided to AP; (v) FCIDC, the implementing agency (IA), and an independent third party will monitor compensation and resettlement work; (vi) vulnerable groups should receive special assistance to ensure they can live a better life and the APs will benefit from the project; (vii) the RP will be combined with the overall municipal planning; and (viii) the resettlement budget will cover all aspects of compensation and rehabilitation assistance. E3. Compensation Standards 3. Based on consultation with the local governments and affected persons (FCIDC adopted a set of resettlement principles and prepared an entitlement matrix for the project. The compensation standard for land acquisition is in accordance with national laws and regulations, as well as with the resettlement policy of Jiangxi Province and Fuzhou City. The compensation standard for housing demolition was set by the Resettlement Department of Fuzhou City, which is based on replacement cost and acceptable to the affected people. The compensation standards for other affected assets were set according to replacement price. The affected 1 The phase 1 Fenggang River Improvement is downstream of Phase 2, and was completed in 2010 with total cost of CNY1.5 billion. The scope for Phase 2 of the project includes widening the river channel, strengthening the slope, and greening the area. It involves with 3700 meters in length and meters in width. The proposed Project only covers Phase 2 of the improvement. i

12 assets include land, housing, trees, surface attachments, transport, water, and power facilities. For permanent land acquisition, the compensation was set at CNY 35,164/mu for farmland, CNY18,582 per mu for orchard land, and CNY12,457 per mu for woodland. The compensation for farmland equals 23 times average annual output value (AAOV) of the affected land areas. For rural housing, the compensation standards were set at CNY /m 2 depending on the structures. 2 There is also an option for exchange housing in the new urban centre. The cut-off date for deciding compensation payment is 25 th May Compensation for land acquisition, residential housing, and other attachments will be paid to the affected villages and APs. For land acquisition, compensation includes land compensation, a resettlement subsidy, and compensation for crops and trees. All relocated households will be provided with compensation for lost houses and attachments, new housing sites free of charge, and other relocation allowances. The compensation for acquired land areas will be in cash according to the most recent regulation and paid to affected village groups. Compensation for crops, trees, other facilities, and temporary impacts will be paid directly to the APs. Income losses resulting from reduced production and/or sales and wages caused by the project will be assessed and compensated in cash. E4. Resettlement and Livelihood Rehabilitation 5. To ensure successful resettlement of APs and restore their living standards, a detailed rehabilitation plan is developed and included in the RP. For land loss impacts, rehabilitation measures include land readjustment among affected village groups, distribution of cash compensation among village members, introduction of employment in nearby industrial district and provision of retirement pensions for elderly, which will be supplemented with skill training, employment referrals, and enrolment in pension programs for seriously affected (land loss) persons. For relocated households, rehabilitation is effected through cash compensation based on replacement value, providing unified rural resettlement housing sites in new resettlement communities near their current locations with complete infrastructure facilities, or exchange housing option for urban apartment buildings, plus moving allowances. Vulnerable APs will be provided special assistance. E5. Public Participation and Grievance 6. A series of consultation activities were carried out with the APs, affected villages or village groups, and other project stakeholders. The APs participated in the preparation of the RP through measurement and socioeconomic surveys and community meetings. In September 2011, a one day resettlement workshop was conducted in the project area by the Project Sponsor and PPTA team. During the workshop the key contents of the resettlement plan were introduced; questions and concerns of affected people were answered, and suggestions from the affected communities were collected. Their concerns and comments are integrated into the RP. Further consultations will be held during the implementation of the RP. A grievance redress procedure has been established for the APs to redress land acquisition and resettlement (LAR) issues that includes the following channels: (i) villages and offices of town or sub-districts, (ii) resettlement office of the IA, and (iii) legal action(s) in the people s court. 2 Here, compensation for buildings is based on decree in 2009, which is being updated. The actual compensation is often raised by 45% to reflect rising replacement cost, which is acceptable to the affected people. E-2

13 E6. Institutional Arrangements 7. The Fuzhou City Investment and Development Company (FCIDC) is Implementation Agency (IA) for the Project, while Project s Executive Agency (EA) is Fuzhou Municipal Government. FCIDC will assume overall responsibility on behalf of Fuzhou Municipal Government for the implementation of LAR, including planning, implementation, financing, and reporting. Working closely with Fuzhou City Land Resources Bureau and Linchuan District Resettlement Office, FCIDC will also take the primary responsibility for resettlement consultation, implementation, and timely delivery of entitlements. To ensure smooth implementation, the staff in charge of LAR will undertake training on resettlement implementation organized by FCIDC. The resettlement implementation schedule is prepared based on the preparation and construction timetable. This draft update RP is based on the detailed design and measurement survey is submitted to ADB for review and approval prior to the award of civil works contracts. E7. Cost and Schedule 8. The total budget for LAR of the project is about CNY million, which accounts for 32.6% of total project cost. It is anticipated that the LAR will start in October 2012 and be completed by the end of May The funding of the Project will be the responsibility of the IA with approval of EA. E8. Monitoring and Evaluation 9. A detailed plan for both internal and external monitoring and evaluation (M&E) is included in the RP. The Fuzhou Urban Infrastructure Improvement Project PMO will submit an internal monitoring report quarterly to ADB. Furthermore, the project sponsor will employ an independent external resettlement monitoring institute or firm in order to deliver external monitoring reports. A thorough baseline study will be completed before the LAR begins and the first monitoring report will be submitted in June After that until project completion, semiannual monitoring reports will be prepared and submitted for ADB s review. After completion of the LAR, annual monitoring reports will be submitted to ADB. E-3

14 I. PROJECT INTRODUCTION A. Background 1. Jiangxi Province is situated in south-eastern People s Republic of China (PRC) and south of the middle and lower reaches of the Yangtze River. To the east are Zhejiang Province and Fujian Province, to the south is Guangdong Province, to the west is Hunan Province, and to the north are Hubei Province and Anhui province. It is located in the hinterland of the Yangtze River Delta and the Zhujiang Delta. The Gan River, Fu River, Xin River, Xiu River, and Rao River are located in Jiangxi. The total area of Jiangxi Province is 166,900 km 2, and the total population was million in Jiangxi has 11 cities; Nanchang is the capital city. 2. Fuzhou city is located in eastern Jiangxi Province, between ' to ' east longitude and 26 29' to 28 30' north latitude. It faces Fujian Province to the east, Ganzhou city to the south, Jian city and Yichun city to the west, and Poyang Lake, Nanchang, and Yingtan City to the north. It is at a distance of 90 km from Nanchang City. The total area of Fuzhou City is 18, km 2, the total population is about 4 million in 2010, which includes 1 district and 10 counties. Population of Linchuan District (the seat of the municipal government) is nearly 1.06 million. About 30% of them are urban population. 3. The project will be implemented to support Fuzhou railway station along the new Xiangpu Railway Line. Xiangpu Railway will be a rapid railway line located in southeastern Jiangxi Province and northwestern Fujian Province. It starts from Nanchang in Jiangxi Province and ends Putian in Fujian Province, passing through Fuzhou and Sanming in Fujian Province. There are 23 stations along the 640 km long railway line including 240 km in Jiangxi Province and 160 km in Fuzhou City. As the southern gate of Fuzhou, the new area of the Fuzhou railway passenger station of the Xiangpu Railway will serve as an important functional district of the city. The area offers convenient access close to the Jing-Fu Highway and north of Anshi Avenue. Based on the Fuzhou City Master Plan, the station area is defined to include a Fuzhou transportation hub and logistics center, a new residential district, and an important urban district in the future. 4. The Fuzhou urban infrastructure improvement project will be implemented by the local government. The project is an important construction project during the period of the 12th Five Year Plan in Jiangxi Province, and also an important construction project for the development of Fuzhou s municipal infrastructure. B. Project Description 1. Geographic Location 5. Jiangxi Fuzhou Urban Infrastructure Improvement Project consists of four components: (i) station access roads, (ii) Phase 2 of the Fenggang River Improvement component, 1 (iii) an urban transport hub, and (iv) bus rapid transit (BRT). Three of the four project components (the station access road, the urban transport hub, and the Phase II improvement of Fenggang River) will be located in the new station area of Fuzhou south of the central district, i.e.,north of Anshi Avenue, south of Chonggang Road, east of Jinni avenue, and west of Fuzhou Railway Station. 1 The phase 1 Fenggang River Improvement is downstream of Phase 2, and was completed in 2010 with total cost of CNY1.5 billion. The scope for Phase 2 of the project includes widening the river channel, strengthening the slope, and greening the area. It involves with 3700 meters in length and meters in width. For the Project, only phase 2 Fenggang River Improvement is included.

15 The fourth component, the proposed bus rapid transit (BRT) including rehabilitation work will be located along Gandong Avenue, from Zhanqian Avenue to Xiaoqiao Township passing through the Central City of Fuzhou. The first three components will involve land acquisition and resettlement, in Chonggang Town and Zhongling Sub-district under Fuzhou Jinchao Economic Development District. For the BRT component, no land acquisition and resettlement will be involved. 2 The figure 1-1 provides a general layout of these three components involved with land acquisition and resettlement, with no. 1-4 referring to the 4 roads, no. 5 referring to phase 2 of Fenggang River Improvement, and no 6. for the transport hub. Figure 1-1: Locations of three project components: station access roads, transport hub and Fenggang River Improvement. 2. Works Content and Scale 6. Table 1.1 presents more details on these four components. Table I.1: Works Content and Scale Scale No. Name Scope Width (m) Length (m) Area (mu) Content 1 Station Access Roads Component 1.1 Gandong Avenue Anshi Avenue Jinni Avenue 55 2, Road works and support for sidewalks, planting, lighting, drainage works 2 Since most of BRT works will be carried out within the current road spaces, the roadside shops will not be affected. 2

16 1.2 Zhanqian Avenue Waihuan- Gandong Gandong Jinnie Avenue 1.3 Waihuan Road Anshi Avenue Chonggang Road 1.4 Jinchao Avenue Anshi Avenue Jinni Avenue 2 Urban Transport Hub Component 2.1 Public Transportation Junction and Dispatching Building & Multifunction Station 3 Bus Rapid Transit (BRT) 4 Phase 2 Improvement of Fenggang River North of the station Along Gandong Ave between Zhanqian Avenue and Xiaoqiao Town Anshi Avenue Jinni Avenue Road works and support for sidewalk, planting, lighting, drainage, and bridge works 55 3, Road works and support for sidewalk, planting, lighting, drainage, and culvert works 50 2, Road works and support for sidewalk, planting, lighting, and drainage woks Dispatching building, repair shop, gas station, parking space, duty room, and plantings. BRT greeting area, BRT stop area, BRT parking area, social vehicle parking area, and plantings X 5 12,000 Rapid bus lane construction, BRT platform construction and equipment installation, BRT vehicle equipment varies 3, River improvement, landscape engineering construction, plantings, and lighting Sites for Resettlement 5.1 Site Site TOTAL Project Costs and Implementation Schedule 7. According to the Feasibility Study Report for the Project, the total investment cost of the project will be CNY1.280 billion, including a construction cost of CNY million, an equipment purchasing and installation cost of CNY million, and other costs of CNY million, plus basic preparatory costs totaling CNY million and interest during the construction totaling of CNY million. The funding sources of the project include CNY million from ADB and self-finance for CNY million by FCIDC. 3 Since part of completed Zhanqian Road is also 70 meters. 4 This width refers to the turning section of the road. 5 The BRT will be implemented within existing Gandong Road. For most alignment a 7 meters of width will be needed, and for station area, total width will be around 14 meters. 6 The house demolition will account about 60% of total demolished houses. 3

17 8. The project will be implemented from Oct 2012 to December Gandong Avenue (Anshi Avenue Zhanqian Avenue), Zhanqian Avenue (Waihuaan Road Jinchao Avenue), Waihuan Road (Anshi Avenue Chonggang Road), and Public Transport Hub will be completed in 2013; Gandong Avenue (Zhanqian Avenue Jinni Avenue), the bus lane rehabilitation of Gandong Avenue (Anshi Avenue Xiaoqiao Township), Phase I construction of the BRT, and construction of the multi-functional station will be completed in Jinchao Avenue (Anshi Avenue Jinni Avenue) and the main civil works of the Phase 2 improvement of the Fenggang River (main civil works) will be completed in The planting and lighting works of the Phase 2 improvement of the Fenggang River will be completed in Social and Economic Benefits of the Project 9. The project will have the following positive impacts in the project area(s): (i) improving Fuzhou central city planning, promoting development of the new Fuzhou railway station area, and increasing the population and land values in the surrounding areas as well as generating economic growth and employment in Fuzhou City; (ii) facilitating development of a rapid, safe, free, convenient transport network between the new station area and central city of Fuzhou; (iii) enhancing infrastructure and flood protection for the new station areas particularly along the Fenggang River in Fuzhou; and (iv) improving urban transport conditions in Fuzhou City through implementation of BRT along Gandong Avenue, and reinforcing the connection between the new area and the central district in Fuzhou, and the Fuzhou urban district and surrounding counties and cities. C. Impact Area 10. The three project components in the area of the new station will entail land acquisition and resettlement in Chonggang Town and Zhongling Sub-district under Jinchao Economic Development District. According to the detailed measurement survey conducted by the PMO, the three components would acquire a total of mu of land areas, which will directly affect 1843 households with 7461 persons from 6 villages. Among them, 569 households with 2450 persons will be physically relocated due to demolition of 98, m 2 of housing. 7 For such impacts, a resettlement plan has been prepared in accordance with ADB requirements. The BRT will have no LAR impact or other temporary impacts. The affected villages that will be incorporated into the city have been designated as under urban planning areas. D. Preparation of the 1. Basis and Objectives of the 11. The project design and the RP preparation were based on the following documents: 1) Fuzhou City Master Plan ( ); 2) Detailed Controlling Plan for New Station Area of Fuzhou City ( ). 3) The Twelfth Five-year Plan of Fuzhou Municipality National Economic and Social Development; The Twelfth Five-year Plan of Fuzhou Municipality Transportation. 4) Feasibility Study Report on Fuzhou Urban Infrastructure Improvement Project (Jiangxi Zhongchang Company). 7 Impact assessment is based on detailed design. The scope of impact is quite accurate, and only minor changes might be expected. 4

18 12. The policies to prepare the RP included the following (see details in Section 4): 1) PRC Laws and Regulations; 2) Regulations and Decrees Issued by Jiangxi Province; 3) Regulations and Policies Issued by Fuzhou Municipality; and 4) ADB s Safeguard Policy Statement (June 2009), Safeguards Requirements 2 for Involuntary Resettlement 13. The policy objectives for the RP have been taken into consideration and incorporated as follows: 1) Wherever possible, adopt the engineering, technical, and economic measures necessary to avoid or minimize the scope of land acquisition and resettlement. If land acquisition and resettlement is unavoidable, effective measures should be adopted as much as possible to minimize the impact of LAR on local residents. 2) In the project preparation phase, conduct a social impact assessment and prepare the RP. 3) The resettlement plan shall be based on a detailed inventory of physical impacts and compensation standards based on replacement values in order to ensure that the incomes and livelihoods of affected persons will be improved compared to their levels prior to displacement. 4) Rehabilitation shall be based on social impact assessment and will address the issues of livelihood restoration and maintaining the community character and cohesiveness. 5) The development resettlement model should be promoted. The resettlement plan in the peri-urban areas shall be developed on the basis of integrating the APs into urban development plan. 6) The APs and original residents in the resettlement sites are encouraged to participate in the resettlement planning. 7) The relocated people will be resettled within their original or planned new communities. 8) The APs and the existing residents in resettlement sites shall all benefit from the project. 5

19 II. RESETTLEMENT IMPACT A. Measures to Minimize Land Acquisition and Resettlement Impacts 14. Measures Taken during the Project Design Period. In order to minimize land acquisition and resettlement, the scope of project was changed from the original August 2008 project scope (before ADB s participation) to a new draft scope in early For example, the long-distance bus terminal and logistics centre were removed from the original project components. Also, the width of Gandong Road (2930 m), Waihuan Road (3060 m), and part of Zhanqian Road (1511 m) was reduced from the original width of 70 m for the entire length to 55 m. The width of Jinchao was reduced from the original width of 55 m to 50 m. As a result, it leads to reduction of land acquisition by ha or 157 mu. For other elements of the project, engineering measures have been adopted in order to minimize demolition and resettlement. For example, the alignment of the southern extension of Jinchao Avenue and Zhanqian Road is curved to the west so that the relocation of at least 10 households can be avoided in Gongjia Group of Zhujia village. For the Phase 2 Fenggang River Improvement component, the width of the Fenggang River was reduced from Phase 1 in order to reduce land acquisition and resettlement in Lingbeihuangjia Village. Through such design efforts, the number of relocated households was reduced from 653 in the original project design to 569 in the final project design. The feasibility study report was based on key planning documents underlying the Fuzhou Urban Master Plan ( ). The planning and design standards were applied to these road sections as presented in the following table. Road Component Gandong Ave Zhanqian Ave Waihuan Road Jincao Road Scope of Construction Table 2.1: Alternatives of Road Schemes Alternative 1 Alternative 2 Reduced Amount Width (m) Length (m) Width (m) Length (m) Anshi Jinni Ave m*2930=31350 Waihuan- Jincao Anshi- Chonggang Anshi-Jinni Ave m* *120= m*3060= m*2061=10350 Total Note: List only those changes are made. B. Project Impact Survey 1. Contents of the Survey 15. Between March and July 2011, an impact survey team was organized by Fuzhou City Investment Development Company including the staff of FCIDC, the Social Investigation Office of the Jiangxi Academy of Social Sciences, the Fuzhou City Demolition and Resettlement Office, the Fuzhou Land and Resources Bureau, and representatives from local agencies such 6

20 as Jinchao Economic Development District, the affected towns, and villages. The team conducted impact surveys in areas affected by the project based on the preliminary design of the proposed project components and topographic maps of the local area. The contents of surveys included the scope of land acquisition, the number of households affected by land acquisition, the amount of houses and auxiliary facilities to be demolished, the number of relocated households, the volume of scattered trees and other properties, public service facilities, and special infrastructure to be affected. 2. Survey Methodology a. Land Acquisition 16. The team visited the sites with a topographic map of 1:1000 in hand to determine out the land area required for the project and the ownership and land use rights of affected land parcels, for affected villages to assess types of cultivated land, orchard land, fish ponds, and forest land. b. Project Affected Persons 17. During the course of the LAR demographic census, APs were classified into two categories: those affected by land acquisition, and those affected by housing demolition and relocation. The land acquisition and resettlement for project does not involve any enterprises, shops, or institutions. The affected population was further surveyed to record registration, nationality, age structure, education, and employment status as part of the social economic survey. Detailed analysis of the survey is presented in the next chapter of this report. The population was checked on site according to the household register card, and the results of surveys were registered in the record books as a population census. c. Houses and Auxiliary Facilities 18. The measurement surveys were conducted based on house structures. In accordance with certified property rights and the construction years of the affected houses, the floor area of every house and the quantities of auxiliary facilities were measured and counted for every affected household, and registered in the record book. C. Findings of the Resettlement Impact Measurement Surveys 19. According to the affected conditions of the project provided by FCIDC and integrated surveys of affected area, the land acquisition and resettlement for the project will involve four villages in Chonggang Town and two villages in Zhongling Sub-district, which are located within Jinchao Economic Development District. Table 2.2 provides a summary of basic land acquisition and resettlement impacts of the project. Table II.2: Summary of the Findings of the LAR Impact Survey Impact Zhongling Item Unit Chonggang Town Subdistrict Total I Administrative Region 1.Town or Sub-district No Administrative Village No II Affected Persons 1. Land Acquisition 7

21 Household household Population person Housing Demolition Household household Population person Total APs person Severely Affected AP household 1390 person Vulnerable Groups household 104 person 205 III Houses/Attached Structures A Residential Houses and Facilities m Reinforcement Frame Structure m Steel-concrete Structure m Brick-concrete Structure m Brick-wood Structure m Wood Structure m Simple Structure m B. Non Residential Houses Brick-concrete Structure m Simple Structure m IV Permanent Land Acquisition mu Cultivated Land mu Slope Land mu Pond mu Orchard mu Ditch mu Forestry mu House Site mu Other mu V Other Facilities Power Facilities 380V km V km Telephone Line km Cable Television Line km Land Acquisition Impact 20. The project will affect six villages, and will permanently acquire a total of mu of land including mu of cultivated land, mu of ponds, mu of slope land, mu of house sites, and mu of ditch. All of this land is collectively owned. The permanent acquisition of farmland will affect four villages in Chonggang Town and two villages in Zhongling Sub-district. Details of affected villages are presented in Table

22 Table II.3: Land Acquisition Impacts among Affected Villages Village Land Acquisition (mu) Affected Households (HHs) Paddy Dry Vegetable Hill Pond Ditch House Subtotal HHs Person Land Field Land Site Zhujia Xianxi Fenggang Fengling Shangzhang Bailing Total % Houses and Attached Facilities 21. Along with land acquisition, a total of m 2 of housing structures will be removed, which include m 2 of brick concrete structures, m 2 of brick wood structures, and 4974 m 2 of simple structures. Housing demolition will result in relocation of 569 households and 2450 persons. All affected households are registered and there no any affected households who rent houses or land areas and all of them will receive full compensation. Details of the affected residential housing and attached facilities are shown in Table 2.4. Table II.1: Summary of Residential Housings and Attached Facilities House Type Village Village Group Affected HHs Affected Persons Brickcement Brickwood Simple Total Zhujia Huangjia Group 1, Zhouraojia Group Guojialing Group Zhujia Group Gaoqiao Group Xiazhang Group Gongjia Group Xianxi Aijia Group Zhoujia Group Fengjia Group Fengling Shangxia Xiaojia Total Affected Population a. Affected Population of Land Acquisition 22. According to the survey, the permanent acquisition of mu of farmland will directly affect a total of 1,843 households with 7461 persons from 35 village groups and 6 administrative villages. Because all affected village groups will redistribute remaining farmland among all households and persons and distribute land compensation equally among all members, all households and population from these 35 village groups will be directly affected by land acquisition. Among 35 affected village groups, 13 of them would lose more than 50% of their land holding, 14 of them would lose less than 20% of their current land holding, and 8 of them would lose 20% to 50% of their current land holding. Table 2.5 presents details of the affected households and population in different villages. Table II.5: Summary of Affected Households and Population in Different Villages 9

23 Vilage Village Group Total HH Population (person) Total Farmland (mu) Per capita Farmland (mu) Acquired Farmland (mu) Per Capita Remaining Farmland (mu) Percent of Acquired Farmland (%) Huangjia Group Zhouraojia Group Guojialing Group Zhujia Group Huangjia Group Zhujia Gaoqiao Group Dongyangwangjia Group Xiazhang Group Gongjia Group Raojia Group Jinjia Group Group Group Group Raojia Group Yufang Group Xianxi Yufang Group Aijia Group Qiujia Group Qiujia Group Zhoujia Group Fengjia Group Yufang Group Dingjia Group Fengling Shangxiaxiao Group Fanjia Group Tubeihandingjia G Wairao Group Hujia Group Fenggang Muke Group Lirao Group Fenggang Group Shangzhang Huangzhaojia Bailing Pengfangtangjia Huraojia Total b. Population Affected by Housing Demolition 23. A total of 569 households with 2,450 persons from 12 village groups and two administrative villages will be relocated. All of these affected families are rural families. The details of housing demolition are shown in Tables 2.4. c. Other Loss 24. Apart from land acquisition and house demolition, the APs losses include house foundations, concrete floor, electricity meter, grain storage, fruit tree, temple, well, tomb, power facilities, telephone line, cable television line. The details of loss are shown in Table 2.6. Table 2.6: Other Loss Items Unit Total Zhujia village Xianxi Village Fengling Village Foundations m Concrete Floor m

24 Grain Storage Room Electricity Meter Set Fruit Tree Piece Satellite Dish Piece Biogas Piece Telephone Piece Temple Piece Ancestral Temple Piece Land Temple Piece Well Piece Gate Piece Tombs Piece Power Facilities 380V Km V0 Km Telephone Line Km Cable Television Line Km d. Affected Employees 25. The project will not affect enterprises. e. Total Affected Persons 26. For both land acquisition and housing demolition 35 village groups in 6 administrative villages will be affected. All of them are registered permanent residents in the affected area. Among them, 1843 households with 7461 persons will be affected by permanent land acquisition, and 569 households with 2450 persons will be affected by housing demolition and relocation. Excluding the overlap of those affected by both land acquisition and resettlement, a total of 1843 households with 7461 persons will be affected by the project. Details of the affected population are shown in Table 2.7. Table II.7 Summary of the Affected Population Affected Type Household and Population Total Land Acquisition Permanent Land Acquisition (mu) Affected Households (HHs) Affected Population (person) House Demolition Residential Housing Demolition (m 2 ) Affected Household (HHs) Affected Person (person) Households Required to be Relocated (HHs) Persons to be Resettled (person) 4. Vulnerable Groups According to the surveys, there are no minorities in the impact area except for one woman of Bai minority. Also, there are no cultural relics or historical sites affected by the project in the impact area. Vulnerable groups (VGs) include the rural poor with the per capita income of 11

25 less CNY 130/month, 8 and handicapped families, widows and orphans, persons above 60 years old, and minorities. 28. According to the surveys, among total affected households, 205 persons in 104 households are considered as vulnerable, accounting for 3% of the total affected persons. Prior to implementation of land acquisition, further confirmation will be obtained by reviewing individual conditions and checking records from local civil administration department. Once the affected households can be identified as vulnerable groups, the project implementing agency and other relevant authorities will also provide them with special assistance during project implementation. D. Impact Assessment 29. For the construction of the project, a total of mu of land will be permanently acquired. Of this total, mu or 70.69% is farmlands, which will directly affect a total of 7461 persons in 6 administrative villages of 2 townships. The actual affected persons are the total persons of these affected villages according to the compensation paid for the APs by per person in Fuzhou. See Table 2.8 for details. Table II.8 Land Acquisition Impacts for Affected Village Groups Total Population (person) Total Farm Land (mu) Per Capita Farmland (mu) Acquired Farmland (mu) Per Capita Remaining Farmland (mu) Percentage of Acquired Farmland (%) Village Village Group Zhujia Huangjia Group Zhouraojia Group Guojialing Group Zhujia Group Huangjia Group Gaoqiao Group Dongyangwangjia G Xiazhang Group Gongjia Group Raojia Group Jinjia Group Xianxi Fengling Fenggang Group Group Group Raojia Group Yufang Group Yufang Group Aijia Group Qiujia Group Qiujia Group Zhoujia Group Fengjia Group Yufang Group Dingjia Group Shangxiaxiao G Fangjia Group Tubeihandingjia G Wairao Group Hujia Group Muke Group Lirao Group Fenggang Group Huangzhaojia Bailing Pengfangtangjia Huraojia This is rural poverty line in Fuzhou; and list of those HHs is kept by local town and villages. 12

26 Total Farm Land Per Capita Farmland Per Capita Remaining Farmland Percentage of Acquired Farmland (%) Village Village Group Total Population (person) (mu) (mu) Acquired Farmland (mu) (mu) Total As shown in Table 2.5, the area of land acquisition accounts for above 40% of original area of farmland, and there are a total of twelve village groups with a per capita of remaining farmland that are below 0.3 mu, which are Huangjia Group 1, Zhouraojia Group2, Zhujia Group 4, Huangjia Group 5, and Gongja Group 9 of Zhujia village; Aijia Group 9, Qiujia Group 10, Zhoujia Group 13, Fengjai Group 15,and Yufang Group 16 of Xianxi village; Shangxiaxiao Group 6 of Fengling village; and Fenggang Group12 of Fenggang village. In addition, the per capita remaining farmland of Huangzhaojia of Shangzhang village and Huraojia of Bailing village are also below 0.3 mu, and the area of land acquisition of the two village groups account for 41.3% and 49.38% of their area of farmland respectively. All of these village groups will be given endowment insurance of land loss farmer and job assistance. The details are shown in Part Whilst the number of village groups affected by house demolition and relocation is in Chonggang Township (11 groups in 3 administrative villages), including 7 village groups of Zhujiavillage, 3 village groups of Xianxi village, and 1 village group of Fengling village. The number of houses demolished is significant at 569, affecting 2450 persons and a total area of 98, m 2. Affected people from these households will require relocation. Among the total demolished structures, brick-wood structures account for 59.96%, brick concrete structures account for 34.98% and the remaining (5.06%) are simple structures. 32. Overall, the project will damage part of the original production system in the affected area and there will be a number of impacts for local production and livelihood. The land resources will have significant impact on the existing livelihood systems for many farmers, with average per capita land holding reduced from 0.77 mu to 0.47 mu among affected village groups. After land loss, most will have to adapt to the new environment by working on non-farm activities to a greater level than before. The resettlement planning has fully considered the impacts of land acquisition on the local production system and livelihood. During project design, schemes have been constantly optimized and various measures to reduce the land acquisition scope, and reduce impacts on local production and livelihood have been considered and adopted. According to impact survey and social economic analysis, the implementation of the project will have considerable negative impacts on the agricultural production of local villages and the income and livelihood of APs. However, since the major part of the local people s income already comes from various non-farm sectors, the degree of income loss is less severe and can be restored by focusing more on non-farm livelihood opportunities. 33. Furthermore, the project construction will provide an opportunity for the APs to establish new production and livelihood patterns including urban employment. Once the rehabilitation work is completed, socioeconomic development will further progress, improving the local people s livelihoods. It is therefore being ensured that the compensation measures and resettlement plan are soundly formulated and implemented, and preferences on resettlement policies, technical and fund supports are provided. In this manner, the villages, families will be assisted to quickly regain or exceed their original economic and livelihood levels. 13

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