PRC: Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project

Transcription

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

4

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

27 III. SOCIOECONOMIC PROFILES OF THE IMPACTED AREAS A. Social and Economic Status of the Impacted Areas 34. Fuzhou City is located in the east of Jiangxi Province at upper-middle reaches of the Fu River. It faces Jianning, Taining, Guangze Counties and Shaowu City in Fujian Province to the east, Shicheng county and Ningdu county of Ganzhou city to the south, Yongfeng county and Xingan county of Jian city and Fengcheng city of Yichun city to the west, and Guixi city and Yugan county of Yingtan city and Jingxian county of Nanchang city to the north. It stretches 222 km from north to south and 169 km from east to west, covering an area of over 18,817 km 2, that accounts for 11.27% of the total area in Jiangxi province. In total, it governs 10 counties, one district and one economic development district, with a total population of approximately four million. This includes Linchuan district, the locale of the Fuzhou municipal government and Jinchao economic district that has a population of 1.06 million. 35. In 2010, the GDP of Fuzhou city amounted to CNY 63 billion (CNY15,750 per capita, which was 90% of Jiangxi average, and 60% of national average), and the ratio of agriculture, industrial, and service sectors was 19%, 49.9%, and 31.1% respectively. Fuzhou is known as the major grain production base in the Jiangxi Province. It produces more than 2.5 billion tons of grain every year and supports more than 1 billion tons of commodity grain for the country. Although Fuzhou was hit by severe floods and waterlogging in 2010, the grain crop planted area still reached million mu with a growth rate of 0.1% compared to the previous year. The grain output reached 2.63 million tons with an added value of CNY billion, an increase of 5.1%. In 2010, the Fuzhou industrial added value was CNY billion, an increase of 19.4% on the previous year. Larger-scale industrial added value was CNY billion, representing a 22.5% increase. The infrastructure of Fuzhou industrial parks had an investment of CNY 3.54 billion and 44 km 2 of land was developed. The main business income of the industrial parks amounted to CNY 69 billion, an increase of 40.6%, including CNY 15.3 billion from the business income of Jinchao Economic District. The industrial sector accounted for 40.4% of Fuzhou s GDP, 2.7 percentage points, higher than that in the previous year. The gross income of Fuzhou city was CNY 7.4 billion, increasing by 45.5% in 2010, including a tax revenue of CNY 6.05 billion, an increase of 50.5%; local financial revenue of CNY5.54 billion, an increase of 55.7%; and a local fiscal expenditure of CNY billion representing a 32.6% increase. The investment in fixed assets reached CNY 64.8 billion, increasing by 34.5%; and exports of USD 0.55 billion, increasing by 14.9%. 36. The per capita disposable income of urban residents in the impacted areas reached CNY 14,445 in 2010, a small increase of 0.1% on the previous year with the per capita living expense of urban residents reaching CNY 7,474, an increase of 11.6%. For rural residents in the impacted areas, the per capita income in 2010 was CNY 5,848, an increase of 14.3%; and the per capita living expense reached CNY 3,331, an increase of 5.7% 37. Overall, Fuzhou City has a strong and rich culture. The economic development of the area is progressing well particularly when compared to Jiangxi province, and the employment needs are relatively stable. However urban infrastructure constraints will restrict its development in the future. Therefore, the project implementation will have a key role to play and should gain strong support from local organizations and residents. 14

28 B. Socioeconomic Profiles of the Affected Towns and Villages 38. The urban area of Fuzhou city consists of the Linchuan District and the Jinchao Economic Development District. Linchuan District is located in middle reaches of Fu River, east of Jiangxi province. Linchuan is the location for the Fuzhou Municipal Government and the municipal political, economic, culture, technology and science center. The total area of Linchuan is 2,121 km 2 with an urban area of 25 km 2. The Jinchao district administrates one town (Chonggang) and two sub-districts (Zhongling and Chengxi Sub-districts) covering an area of km 2, a population of 90,000 and a planned development area of 40 km 2. See Figure 2-1 and Figure 2-2 for detail. Here, Figure 2-1 indicates the location of Fuzhou City in Jiangxi Province (marked area in left map). Figure 2-2 is general layout of central city of Fuzhou with marked area as new station area, as well as general layout of BRT component. The Jinchao Economic Development District is located to the north and east of the marked station area. Figure 2-1 Fuzhou City Location 15

29 Figure 2-2: Location of station area and BRT. Map Title: The Location of Project Components of Jiangxi Fuzhou Integrated Urban Project. (The marked area in blue color is new station area, where the components are located). 16

30 39. Jinchao Economic Development District as part of Linchuna District is located in the new area of Linchuan District, which was authorized by national government in Jinchao Economic Development District has easy access to two existing expressways (Hurui and Fuyin expressways) and two expressways under construction (Jiguang and Fuji expressways). Jinchao has a good strategic location with easy connections to the Pearl River Delta, Fujian Delta and Yangtze River Delta, Nanchang city, the capital of Jiangxi Province, and is six hours away from Hangzhou city, Hefei city, Wuhan city, Fuzhou city, Changsha city and Nanjing city. It is only 2 hours from the international deep-water port of Meizhou Bay and Putian city will be two hours from Jinchao when the Xiangpu railway line is completed. Jinchao Economic Development District forms part of a leading industrial sector with electric mechanics, medicine, new energy resources, and textile industries. It provides strong project capacity, high quality and cheap labor forces, provides a good opportunities for urban expansion, promoting urban scale, enhancing the inhabitable environment. 40. The range of important current and future urban infrastructure projects will aim to help Fuzhou become a city with improved traffic conditions and enhanced quality of natural and built environment. The development program will inevitably impact local residents. The land acquisition and resettlement project will affect six villages in Chonggang Town and Zhongling Sub-district. 41. In addition, from March 2011 to July 2011, the resettlement office within Fuzhou City Investigation Development Company (FCIDC) organized a team with other relevant local authorities and a resettlement design unit to carry out detailed impact surveys and a social economic survey among affected villages and individuals to help with the process of delivering mitigation of impacts. The survey was based on a combination of a review of existing statistical information and a sample household survey among APs. 1. Socioeconomic Profiles of the Affected Town/Sub-District 42. Chonggang Town is located in the central part of the Linchuan District at suburbs of Fuzhou City, around 10 km from Fuzhou city center and the Shangdundu area. It borders with Zhongling sub-district and Songhu Township to the east, Shangdundu Area to the west, Hebu and Dongguan Townships to the south, and with Fuzhou City Industrial Park in the north. The total land area of Chonggang Town is 83.6 km 2 covering 12 administrative villages, one garden farm, and one residential committee with 111 natural villages and 177 village groups. There are 7,947 households with 27,467 persons in Chonggang Town, including 7,147 agricultural households, 800 non-agricultural households, an agricultural population of 26,263 and a nonagricultural population of 1,204. There are more than 300 rural low income households (with per capita income below CNY130 per month) with a population of 700. The total male population is 14,699 and total female population is 12,768 yielding a male to female ratio of 115:100. In terms of the age structure of the township, there are 6,958 persons less than 18 years old and 20,509 persons over the age of 18. Workers, who are local residents, account for one-third of the total workforce, largely based in the urban area of Fuzhou City. 43. In 2010, the total financial revenue for Chonggang Town was CNY 230 million, and the per capita net income was CNY 6,680. There is 27,000 mu of cultivated land area in Chonggang Town, with 23,000 mu of paddy land, 4,000 mu of dryland and 75,000 mu of woodland. The 9 Jinchao Eco Dev district is geographically part of Linchuan district. But administratively it is not under Linchuan District; instead, it is directly under Fuzhou City. 17

31 main agriculture crops are rice paddy and watermelon with limited farming of cotton and sugar cane. Rice paddy and watermelon accounted for 70% of the total output. 44. Chonggang Town has one middle school with approximately 1,000 students, most residing in Chonggang Town itself. There is one central elementary school in Fenggang Village, the seat of Chonggang Town. There are 1,000 to 2,000 elementary school students. Each village has an elementary school, usually with grades one to three, with some schools including grades up to five. All grade six students study in the central elementary school located in the town centre. The village primary schools and students will not be affected by the project. There is one hospital and one nursing home in the town. The construction of the Project will directly affect four villages in the town including Zhujia, Xianxi, Fenggang, and Fengling V. 45. Zhongling Sub-District is located in the southern part of Fuzhou City. It borders the Fu River to the east, the Fenggang River to the west, Chonggang Town to the south and Fuzhou City Proper to the north. It has a total land area of 57 km 2 including 10,000 mu of cultivated land and 12,600 mu of woodland. Zhongling Sub-districts consists of five administrative villages, three rural communities, and two urban residential committees with 100 village groups. There are 9,092 households with 28,186 persons in Zhongling, including an agricultural population of 20,473 from five villages and three rural communities, and a non-agricultural population of 7,713, mainly from two urban residential committees. In 2010, the total gross domestic product in Zhongling Sub-district was CNY 376 million, showing a growth of 8.5% from the previous year. The share of GDP from secondary industry was CNY 220 million in 2010 exhibiting an increase of 8.9 percent from previous year; the tertiary industry output value was CNY 132 million, an increase of 33.3%; the output for agriculture, forestry, animal husbandry and fishery production was CNY 24 million, dropping slightly from previous year due to flood impacts. Per capita rural net income was CNY 7,085 in 2010, an increase of 10% from the previous year. The project construction will affect two villages in the sub-district, these are Shangzhang and BaiLing Villages. Table 3.1 Key Statistics for Chonggang Town and Zhongling Sub-district Town and Sub-district Chonggang Zhongling A. Basic Condition 1. Number of Villages Number of Villages with electricity Number of Villages with telephone Number of Villages with cable TV Number of Villages with road access Number of Household 7,947 9,092 Non-agricultural Household 800 3,106 Agricultural Household 7,147 5, Population 27,467 28,186 Non-agricultural Population 1,204 7,713 Agricultural Population 26,263 20,473 4.Total Labors 13,582 20,000 B. Farming Condition 1. Total Farmland (mu) 28, ,120.9 (1) Paddy (mu) 27,946.3 (2) Dry land (mu) Total Slope land (mu) 75,000 Total Wood Land (mu) 61,300 12, Total Grain Output(ton) 24, Per Capita Farmland (mu)

32 Town and Sub-district Chonggang Zhongling C. Per Capita Rural Income (CNY) 6,680 7,085 D. Enterprises 1. Number of Enterprises Number of Industrial Enterprises Employees of Enterprises 1, Employees of Industrial Enterprises 1, E. Town Owned Work Units Total Staff Number of Retirees Socioeconomic Profiles of the Affected Villages 46. The project will affect 1843 households with 7461 persons in six villages, including Zhujia village, Xianxi village, Fenggang village, and Fengling village in Chonggang Town, and Shangzhang village and Bailing village in Zhongling Sub-district. The survey team investigated the degree of impacts on these villages with a summary shown in Table 3.2. Table III.1: Socioeconomic Profiles for Affected Villages in 2010 Zhujia Xianxi Fenggang Fengling Bailing Shangzhang Total I Basic Data A Household Non Rural Rural B Population 3,004 4,100 3,552 2,134 1,872 2,179 16, Non Rural ,179 2, Rural 2,548 4,100 3,552 2,134 1,872 14,206 C Labor 982 1,856 1,599 1, ,103 7, Male 499 1, , Female ,570 D Employment 926 1,632 1,489 1, , Rural 712 1,368 1, , Non Rural ,523 II Cultivated Land 3,684 2,941 3,450 1, ,482 1.Paddy (Vegetable) 3,182 2,941 3, , Orchard Others Per Capita III Economic Status A Total Incomes 1,502,000 24,600,000 21,312,000 14,255, Farms ,328,000 5,328,000 9,978, , Off-farms ,272,000 15,984,000 4,276, B Per Capita Income 5,000 6,000 6,000 6,680 5,000 6, There are 12 village groups in Zhujia village. The total population is 548 households and 3,004 persons. Among total households, there are 58 rural low income households, 8 fiveguarantee households and 50 households with disabled family members. The population over 60 years old is 8% of the total population. In Zhujia Village, there is 3,178 mu of paddy land, with 853 mu will be acquired, 1,200 mu of vegetable land, 2,000 mu water pond and 3,645 mu of forest land. Among 3645 mu of forest land, 1200 mu are dryland, and about 1379 mu of forest land had already been acquired. The main crops are rice, watermelon, sugarcane, and vegetables. The total agriculture output value is CNY 3.17 million and the net income per capita was CNY 5,000 in There is one primary school with 10 teachers and 150 students. 19

33 48. There are 11 village groups in Xianxi village. The total population is 900 households with 4,100 persons and a total labor force of 1,586 persons. All the villagers are Han people and the male to female ratio is 55:45. There are 50 rural low income households and 10% of total population is over 60 years old. Xianxi Village has 3,117 mu of paddy land and 3,676 mu of forest land. The main crop is rice, with some rape, buckwheat, sugarcane, and vegetables. The total agriculture output value approximately CNY 8 million. There is one large enterprise in the village Jinshan Fireworks Plant, with gross revenue of CNY 100 million per year. There are two brick factories in the village, with annual sales of CNY 3 to 4 million. The farmer s net income was CNY 6,000 in In Fenggang village there are 20 village groups with 857 households and 3,352 persons. The net income was approximately CNY 6,000 per capita in There is 3,450 mu of farmland in the village primarily consisting of rice plantations with some vegetable growing. 50. In Fengling village there are 14 village groups with 536 households and 2,134 persons including 1,319 rural laborers. Among the total households, 55 of them belong to the rural low income households. There are 224 persons above 60 years old. The net income is approximately CNY 5,500 per capita. Fengling village consists of 1,532 mu of paddy fields and 2,840 mu of forest land. The main crop is rice, with some growing of vegetables. Fenggang Village has relatively good transport conditions with both the Fuzhou to Yinchuan expressway, and Fuba and Xianpu highways passing through and serving the village. At present, Fengling village is the centre for goat trade with annual trade amounting to 200,000 heads. 10 The project will benefit for the development of goat trade by reducing cost, developing local logistics, and make local traffic more conveniently. The village also has a medical station and a primary school. 51. There are 578 households and 1,872 persons in Bailing Village. Bailing village is a resettlement village with all residents coming from those affected by the land acquisition and resettlement of new municipal center. Most of farmlands have be acquired for the municipal building construction; 57.4 mu of land will be acquired in the project. The per capita net income was CNY5,800 in 2010, with most of the income coming from the non-farming sectors. Due to construction of new municipal center, most of land areas to be used by this Project had already been acquired. 52. Shangzhang village has 587 households with 2,179 inhabitants. There are 189 persons over 60 years old. The labour forces are 1103 persons, and the annual per capita net income is CNY6,680. Due to the construction of the Fuzhou to Yinchuan expressway and the municipal building construction, the farmland which will be used for this project has already be acquired and per capita farmland is only 0.03 mu. 3. Socioeconomic Status of Affected Households a. Summary Information 53. In order to have a better understanding of the social economic profile of the APs, their attitudes towards compensation and rehabilitation and their attitudes towards the proposed project, a social economic survey was carried out among the affected households. The survey included a sample household survey based on collection of information from questionnaires. A total of 276 questionnaires from six affected villages were collected, which include Zhujia, 10 No impact since it is not located in affected village group. 20

34 Xianxi, Shangzhang, Bailing, Fenggang and Fengling. 11 Among them, there are 8 urban households 12 and 268 rural households. Except for 1 household, all the rest are Han nationalities. There are 21 rural poverty households, accounting for 7.6% of total sample households. Among total sample households, 81 households are affected by both land acquisition and resettlement, 6 households affected only by house demolition, and 189 households affected only by land acquisition. The detail information is presented in Table 3.3, 3.4, and 3.5. Items HH Table 3.3: Type of Sample Households Affected Persons No. of Sample Households Percent ADB Standard Male Gender of Samples Female Affected by both Land acquisition and house % 10-20% Demolition Land Acquisition Only % Total % Table 3.4: Composition of Sample Households Village Affected HH No. of Sample Percent Male Female HH Zhujia % Xianxi % Fenggang % Fengling % 14 6 Bailing % Shangzhang % Total % Table 3.5: Gender Composition of Sample AP Households Gender No. of Sample APs Percent Male % Female % Total % 54. Among the interviewees 58% were male and 42% female. The average family size is 4.8 persons per household. Among the sample households, male were 677 and female were 611. The age distribution included; 36 persons between 20 and 30 years old; 45 persons between 31and 40 years old, 55 persons between 41 and 50 years old, 63 persons between 51 and 60 years and 77 persons over 60 years old. 55. The interviewees education background consisted of 17% who are illiterate, 46% with only elementary school education, 28% with middle school education, 8% had high school education and only 1% had college or further education. In terms of employment structure, 45% rely on farming, 22% from industry, construction and transport, 9% from retail and services and 17% from housework or other. For those who rely on farming, most of them are also working as 11 Due to difficulties of obtain adequate number of sample households, social economic survey was conducted in two phases, with first phase collecting 115 sample households in July 2011and second phase in April 2012 for another 161 sample households. 12 Some villages have already converted into urban, see Table

35 migrant labors, and farming income account for only 7.4%. For employment, 72% are working from within the same town with 91% from the same village, 10% elsewhere in the same county or district, 5% elsewhere in the same province, and 13% from working outside of the province. The details of employment are shown in Table 3.6. Table 3.6 Composition of Employment Item Employment Gender N % Male % Female % Food Grain Economic Crop Forestry Animal Husbandry Industry Building Industry Transportation Business Service Industry Village Management Education and Culture Technology and Health Housework Other Subtotal No-answered/unemployment Total On the issue of income level, the survey showed that the average total net income for 276 households was CNY 31,724 per household or CNY 6,609 per capita; and the averaging expense was CNY per household in The details of household income, composition of income and gender, and expense are summarized in Table 3.3, Table 3.7 and Table 3.8, respectively. Table III.7: Income Sources for Households Surveyed in 2010 Item CNY/Year/HH Male Female % Wage Part-time Income Farm Forest Animal Fishery Other Sidelines Off-farms Government Assistance (Pension, allowance, etc.) Other Incomes Total

36 Table 3.8 Income and Gender of Sample Households Income N Male Female members of sample households No-income Below CNY CNY CNY CNY CNY CNY CNY CNY Above CNY Total Among total income, above 40% of income came from part-time activities which is the main resource of total family income; 31.5% of income came from wage coming from factory work; 12.15% of income came from off-farms activities; only 7.4% of income came from farm activities; 0.12% of income came from forest activities which is the lowest income of the total income; fishery and other sidelines activities accounted for only 0.1% and 0.2% of the total income respectively; only 8.2% of income came from agriculture directly. The structure of income sources reflects the current status of local economy. Since local villagers are living close to central district, many of them work as part-time laborers in urban area of Fuzhou City, which explains why two thirds of their income derives from part-time work. Table III.9: Expenses of Households Surveyed Item CNY/Year CNY/Year/HH % Food Water and Sewage Treatment Energy (Electricity, Gas, Coal, Charcoal, etc.) House Clothes Transportation Communication Education Health-care Farm Input Debt (Interest) Makeup, Haircut, Bath, Film, etc.) Gifts (Birthday, Wedding, etc.) Others Total As shown in Table 3.4, food expense was the largest element of total household expenditure, accounting for 43.8%, followed by healthcare, debt and education accounting for 12.6%, 7.5% and 6.7% respectively. The farm input was only 3% of total expenses in 2010, indicating many villagers engaged in off-farm activities with limited involvement in farming activities. 23

37 59. Table 3.5 indicates the quantity and mix of household assets. For durable goods, each household has 1.21 television, 40% of families have a DVD player, 57% families own refrigerators, 18% of families have washing machines, 3% of families have microwaves, 13% of families have a water heater, 11% of families have an air conditioner, each of families have two electric fans, 14% of families have telephones, and each of families have about 2 cell phone. For transportation 72% families own at least 1 motor bike. Table III.10: Household Assets Item Quantity No. per HH Television Set Stereo/VCD/DVD Refrigerator/Ice Cube Washer Microwave Oven Water Heater Electric Fan Air-condition Water Dispenser Telephone Mobile Telephone Computer Piano 0 0 Car Motor Bicycle Truck Tractor Farm Machinery Others b. Opinions of APs 1) How to be Resettled or Compensated 60. On the issue of how to be resettled or compensated for the APs, 5.8% interviewees prefer to cash compensation, 87.3% interviewees prefer to relocation site resettlement by constructing their own houses, and 6.9% interviewees prefer to apartment resettlement. It is clear that the relocation site resettlement is the most popular with the interviewees, but the relocation site accepted by them should be within 0.5 to 1.0 km from their present living site. 2) How to Support Rehabilitation for APs 61. The APs are of the opinion that there will be a need to redesign their lives after the land acquisition. A range of services is required to assist with the rehabilitation and to help improve the living standards. The survey showed that 33.2% interviewees would like to receive job training after the land acquisition, 6.8% job information, 44.5% require jobs themselves, 6.3% APs interviewees require loans, and 9.2% interviewees need other services. It is clear that supporting employment needs and professional training is vital. 3) Acceptance of Relocation Site 62. The relocation site was primary set between Guihua Silu and Jinni Avenue with the area of about mu. On the issue of relocation site, the survey showed that 74.7% interviewees 24

38 would accept it, 15.8% interviewees was unclear, and 9.5% interviewees would not accept it (N=87, 87 interviewees affected by both land acquisition and house demolition, only 6 interviewees affected by house demolition). c. Project Recognition 63. The survey gathered information around the interviewee s knowledge about the project. The survey showed 22.5% of all the interviewees first got to know about the project four years ago, 31.2% three years ago, 18.1% two years ago, 12.8% one year, 2.6% half a year while 12.8% interviewees did not hear of the project at all. The main channel of information was noted as being through sharing information among neighbors, relatives and friends, accounting 58.9%; 19.8% interviewees heard through other ways; 18.4% interviewees heard through meeting of district, subdistrict, township, and villager committee; only 2.4% interviewees heard through newspapers, television or other broadcasts; and 1.5% interviewees heard through social interviewers. 64. Furthermore, the survey collected information about whether interviewees knew the project. 66.8% interviewees knew it, 75.6% interviewees supported the project and thought it could improve local economic development as a whole; above 60% interviewees thought it could increase local job opportunities and improve the local urban environment. More than twothird of interviewees held a positive attitude to the project. However the survey identified some uncertainty from the respondents. The details are shown in Table Table III.11: Opinions and Attitudes towards the Project Item Yes (%) A little (%) No or (uncertain) (%) Not Interested Total Whether you know the project Whether you agree with the project Whether job opportunity can be improved by the project Whether quality of water, health and air can be improved by the project Whether local urban environment can be improved by the project Whether local economic condition can be improved by the project whether local tourism development can be improved by the project Whether local house price can be increased by the project Whether local investment environment can be improved by the project Whether the poor person can be benefited from the project Whether the woman can be benefited from the project Whether APs can be benefited from the project Whether you know the project impact on your family Whether your loss can be compensated fairly Whether you can obtain assistances besides compensation Item Better (%) Worse (%) No change (%) Not sure (%) How your family living has been affected by the project C. Analysis of Affected Women in Project Areas 65. During household survey, among 276 surveyed people, 117 are females which account for 42.4% of total. The age structure of the surveyed women includes 17 persons below 30 years old or 14.5%; 18 persons between years old; 27 persons between years old; 20 persons between years old; 12 persons between years old; and 23 persons 25

39 above 70 years old. In terms of marriage status, 6 are single, accounting 5.1%; 98 are married accounting for 83.8%; and 13 are divorcees accounting for 11.1%. 66. Among sample households, females contributed to 33.1% of family income. Among CNY31,724 average family income, females contributed to CNY10,493 per year. In terms of employment structure, 35.9% of females are doing housework, 33.3% are doing farming, the remaining are retail (6.8%), service (6.0%), construction (4.3%), industry (2.6%), and other(11.1%). 67. The males and females working on farming are 68.3% and 31.7% respectively, and males and females working on sidelines accounting 73.8% and 26.1% respectively. 13 The data analysis shows that the resettlement strategy will need to take into account the project impacts on women s household/family role as they bear most housework. Secondly, the main income source of women is farming and it will be negatively impacted by land acquisition and subsequent land loss. The resettlement strategy therefore will consider enlarging women s proportion of employment in third industry especially business and other service industry. 13 The cropping pattern is based on two seasons. 26

40 IV. LEGAL FRAMEWORK AND RESETTLEMENT POLICIES A. Applicable Laws & Regulations and Decrees 68. The PRC has issued laws, regulations and policies on the resettlement and compensation which have been applied for many infrastructure projects. This project will follow the related Chinese laws, national and provincial regulations and local by-laws and policies as well as meeting the requirements set forth by ADB s safeguards policy.. The following list contains documents that from the basis for the Project land acquisition, demolition and resettlement: 1) The Land Administration Law of the PRC (2004 Revision) 2) State Council s Decision on Deeping Reform and Strengthening Management of Land Acquisition and Resettlement (State Council No. 28 Decree on Oct ); 3) Guiding Opinions on Improving the System of Compensation for Land Acquisition and Resettlement (State Land Sources Ministry No.238 Decree on Nov ); 4) Real Property Rights Law of the People s Republic of China (Order of the People s Republic of China No. 62 Decree on Mar ); 5) Urgent Circular on Further Strict Management of Land Demolition and Effectively Safeguard People s Legitimate Rights and Interests (General Office of the State Council No.15 Decree on May ); 6) Regulation for Expropriation and Compensation of Residential Buildings on Stateowned Land (State Council No. 590 Decree on Jan ); 7) Jiangxi Province Management Procedure of Urban House Demolition (Jiangxi Province Government No.122 Decree on Aug ); 8) Jiangxi Province Government on the Notice of Publicizing Jiangxi Province Unified Annual Output Values of Land Acquisition and Integrated Price on Regional Land (Jiangxi Province Government No.22 Decree on Feb ); 9) Notice on Implementation Project of Farmhouse Demolition and Resettlement Compensation in New Urban District of Fuzhou City (Fuzhou Municipal Government No. 25 Decree on June ); 10) Fuzhou City Interim Procedures for Employment Assistance of Land-acquired Farmer Employment (General Office of Fuzhou Municipal Government No.31 Decree on June ); 11) Notice on Publicizing Linchuan District Unified Annual Output Values of New Land Acquisition and Integrated Price on Regional Land (General Office of Fuzhou Municipal Government No.17 Decree on Apr , effective on March ); 12) The Circular of the General Office of Fuzhou Municipal Government on Fuzhou Human Resources and Social Security Bureau, Fuzhou Finance Bureau and Fuzhou Land and Resources Bureau on Operations of Fuzhou Land-acquired Farmer Joining Endowment Insurance (General Office of Fuzhou Municipal Government No.19 June ); 13) The Asian Development Bank s Safeguard Policy Statement (2009), Safeguards Requirements 2 for Involuntary Resettlement. B. Relevant Clauses of the Laws & Regulations and Decrees 69. The above laws and regulations have improved the protection of those whose standard of living might decline because of the project development. This project can be implemented 27

41 based on The Law of Land Administration of the PRC (effective as of 1 January 1999 and revised in 2004) and the other rules and regulations related to them. Here listed are the most important excerpts from State Council s Decision on Deeping Reform and Strengthening Management of Land Acquisition and Resettlement (State Council No. 28 Decree on Oct ) and Guiding Opinions on Improving the System of Compensation for Land Acquisition and Resettlement (State Land Sources Bureau No. 238 Decree on Nov ). The project will carry out relevant polices issued by Fuzhou municipal government according to the requirements, including Notice on Implementation Project of Farmhouse Demolition and Resettlement Compensation in New Urban District of Fuzhou City (Fuzhou Municipal Government No. 25 Decree on June ) and Notice on Publicizing Linchuan District Unified Annual Output Values of New Land Acquisition and Integrated Price on Regional Land (General Office of Fuzhou Municipal Government No.17 Decree on Apr ). The key clauses of the relevant laws, rules, regulations and decrees are summarized below and detailed further in Appendix Key Clauses of State Council s Decision on Deeping Reform and Strengthening Management of Land Acquisition and Resettlement issued by State Council No. 28 Decree on Oct Article 12. Improving land acquisition compensation practice: People s Governments at the county level and above shall adopt practical measures to ensure that the farmers whose land is acquired shall not be made worse off. In accordance with provisions of current law, if land compensation and resettlement subsidies paid in accordance with the provisions of current law are still insufficient to help the land loss farmers to maintain their original living standards, the resettlement subsidies may be increased upon approval by the people s governments of provinces, autonomous regions, and municipalities directly under the central Government. If the total of the land compensation and resettlement subsidies are still insufficient to help the landloss farmers to maintain original living standards when reaching the legal upper limit, the local people s governments may pay subsidies with income received from compensated use of stateowned land. Provincial level government shall formulate and publicize the annual average output values (AAOV) in uniform amount or comprehensive land price for each city/ county, and the compensation should be uniformed within the same type of land. The full costs of land acquisition for national key development projects shall be included in the overall project budget. 71. Article 13. Resettle the land loss farmers properly: County level and government should specify detailed measures to secure APs long-term livelihood. Within the planned urban area, local governments must bring farmers who have suffered land loss caused by land acquisition into the urban employment system, and establish a social security system; outside of the planned urban area, local government must reserve necessary cultivated land in its administrative jurisdiction for these land-loss farmers when land acquisition occurs, or corresponding jobs will be provided for them. 72. Article 14. Improve land acquisition procedure: Documentation on information disclosure to and confirmed by the farmers whose land is to be requisitioned should be treated as an integral part of the materials submitted for the approval of land acquisition. 73. Article 15. Strengthen supervision and management of the land acquisition process: In case the resettlement of land acquisition has not been carried out, use of the acquired land is not allowed. Provincial government shall formulate the internal distribution scenarios of the land compensation within the collective organization based on the principle that most of the compensation should be used for farmer households whose land has been requisitioned. The 28

42 rural collective organization shall make the information on the revenues and allocation of the land compensation fund publicized to and supervised by its members. The agriculture, civil affairs and other departments shall strengthen the supervision over the distribution and use of the compensation fund within the rural collectives. 2. Key Clauses of Guiding Opinions on Improving the System of Compensation for Land Acquisition and Resettlement issued by State Land Sources Ministry No. 238 Decree on Nov ) 74. Distribution of Land Compensation. The land compensation should distribute reasonably to collective economical organizations in rural areas according to the principle of land compensation that is mainly used for the farmer households whose land has been requisitioned. The specific distribution is formulated by the provincial people government. To the villages that all lands have been requisitioned and collective economic organizations are cancelled, the total land compensation should be used for resettling land-loss farmers living and production activities. 75. Resettlement of Agriculture Production. Outside of the planned urban area, local government must reserve the necessary cultivated land in its administrative jurisdiction for landloss farmers at first to help them continue to engage in agriculture production when land acquisition occurs according to taking use of collective land kept in reserve, contract land that contactor voluntarily return, contract land flow, new cultivated land by land exploitation and consolidation, etc. 76. Resettlement of Job. It should create the conditions for providing free training for landloss farmer. The land use unit should arrange job for the farmer on the same condition. Within the planed urban area, local governments must bring farmers who have suffered land loss caused by land acquisition into the urban employment system, and establish social security system. 77. Informing the Conditions of Land Acquisition. Before the materials submitted for the approval of land acquisition, the local department of state land resources should inform collective economic organizations and farmer households about the use, location, compensation standard and resettlement of the project in written form. Illegal building and crops planted after the publication of the land acquisition notice will not be compensated. 3. Key Clauses of Notice on Implementation Project of Farmhouse Demolition and Resettlement Compensation in New Urban District of Fuzhou City issued by Fuzhou Municipal Government No. 25 Decree on June Article 2. The Location of New Urban District (within the south of Yinbing Avenue, the east of Fuyin Highway, and the west of Fu River): the land and farmers housing (including other buildings) which need to be resettled and compensated are applied to the implementation project because of the need of construction. The farmers housing outside of the location mentioned above can refer to the project. 29

43 79. Article 11. One-time Cash Compensation: (1) The demolished housing is compensated for the price of new estates. (2) The house site of the resettled household is compensated for CNY 80,000 per household, and the separated household is compensated for CNY 74,000 per household. 14 (3) Implementing Agency pays the resettlement interim subsidiary for APs for 8 months with CNY 30/month per person, and pays CNY 200 per household one-time for relocation cost. 80. Article 12 Resettlement at the Local Designated Sites: (1) According to unified planning of Fuzhou City Planning Bureau, the construction lands of local designated village are Xiaoyudingjia and Bailing (within the south of Fuba Line) in Zhongling Sub-district, and Fanjia in Chonggang Township. The APs of the project will be resettled by the principle of local resettlement. (2) To the household who chooses local resettlement site, their demolished housing and other buildings will be compensated for the price of new estates and will be resettled at a local resettlement village. (3) The sub-district of resettlement sites will be in charge of land acquisition and three supplies and one leveling including supply of water, electricity and road and leveled ground (conditions ready for further economic development). The sub-district should unify land acquisition, construction standards and construction mode; control all household land within 100 m 2 ; check and issue the certificate of collective land use according to the principle of one household one house site. (4) To the distribution of resettlement housing plots, the relocated household chooses the housing plots by time order of signed contract and demolished housing, and the housing plots of separated household is determined by unified draw lots within the scheduled time. (5) It will be only one house plot for the APs who have two or more houses, and it will not distribute other housing plots to them. The APs who meet the conditions of family splitting will be treated as separated households. (6) If the area of demolished housing land area surpass the regulated housing plot it will be resettled by one standard house plot according to the regulation. (7) If the area of demolished housing falls short of the regulated resettlement area it will be resettled with a regulated house site but will pay CNY 60/m 2 for the surpassed area. (8) The APs who have been resettled as off-farm employees before removing but live in an affected village and have a housing area above 80 m 2 (including 80 m 2 ) will be resettled with a house site, while the separated household resettlement is not allowed. If the APs have housing area below 80 m 2 they will not be resettled with a house site. 15 The urban resident who has been resettled as off-farm employee will be treated the same as a present villager. (9) The demolished housing that belongs to mixed multi-household property rights and meets the condition of farmer housing land due to the need of separated resettlement in the project will be granted approval of the separated household resettlement. (10) APs aged 18 or above will be resettled by the separated household with a house site, at the same time they should pay the resettlement cost of CNY 10,000 28, The APs who meet legally marriageable age do not need to pay for the resettlement cost; APs aged 14 Separate household refers to elder son to have separate house after resettlement. 15 It refers to those members who have already moved into cities and became urban residents due to college, army and employment. Since they have other houses in urban area, they are no longer entitled to housing plots in the villages. 16 Such provision was practiced in recent years in the project areas. 30

44 21 will pay CNY 10,000 for the resettlement cost; APs aged 20 will pay CNY 16,000 for the resettlement cost; APs aged 19 will pay CNY 22,000 for the new resettlement housing plot cost; while the APs aged 18 will pay CNY 28,000 for the resettlement housing plot cost. For those households with other conditions, they will not be allowed to split their households and get additional housing plot. Widows and widowers over the age of 60 who live with their families will not be granted approval of the separated household resettlement in principle. 17 There is a resettlement apartment option for relocated households under this project. Every household will be compensated for CNY 10,000 and will also be distributed with a housing site after paying CNY 10,000 for the resettlement cost. (11) The demolished household that meets the condition of the separated household resettlement should pay CNY 6,000 for the cost of site leveling and on-site infrastructure cost. (Note: For this project, this part of cost will be responsible by project sponsor). (12) The resettlement site will be constructed as a new town according to certain standards. Fuzhou City Planning Department will formulate a unified plan, and the relocated households will self-construct their housing according to the plan. The villagers who construct their resettlement housing according to the housing design of Fuzhou Planning Department will be given reward of CNY 40/m 2 according to their housing area after their resettlement housing meets the standards. The villagers who do not construct their resettlement housing according to the housing design standards will not be given a reward. 18 (13) To the affected person who meets the resettlement conditions, Fuzhou Planning Department, Fuzhou State Land and Resources Bureau, and Fuzhou Housing Management Department should arrange relevant procedures and issue property certificates to them. 19 The departments should only receive minimal cost of producing such certificates with no additional charges and will be covered by compensation. (14) Every affected household should pay CNY 4,000 for the construction of the main road in resettlement area. 20 The cost should be supervised and used by the representatives of villager and sub-district (Note: For this Project, the project sponsor will be responsible for this part of the cost). (15) The house site of resettlement should not be allowed to be illegally assigned. Illegal assignment will not be granted approvals for housing construction and will be investigated for legal responsibility. (16) The Implementing Agency pays the resettlement interim subsidiary for APs as 8 months with CNY 30/month per person, and pays CNY 400 per household for twice moving cost. 17 In rural China, such policy is to encourage the elder son family to live together with his single parent and provide support for their retirement. 18 Such policy will be disclosed widely among relocated households. 19 On the basis of household agreement, the property certificates can be issued in the name of both husband and wife. 20 This is early regulation. Such provision will not apply to this project. For this Project, the cost of site preparation will be paid by the FUID as indicated in Chapter 5 and Chapter

45 4. Key Clauses of Notice of Publicizing Linchuan District Unified Annual Output Values of New Land Acquisition and Integrated Price on Regional Land issued by General Office of Fuzhou Municipal Government No.17 Decree on Apr The new land compensation standard is made up of land compensation and green crops compensation and it does not include compensation for ground attachments and social security fees (see Tables 4.1 and 4.2). Table IV.1: Compensation for Land Acquisition in Linchuan District (1) Land Compensation Wenchang, Chengxi Zhongling Sub-district, Shangdundu, and Resettlement Xiaoqiao Towns Subsidy (CNY/mu) Paddy Field, Cotton Field (AAOV = CNY 1,460/mu) 21 35,164 1,000 Intensive Cultivated Pond 51,246 1,500 Pond 34,164 1,000 Merchandise Vegetable Land 51,246 1,500 Vegetable Land 34,164 1,000 Dry Land 23, High-yield Orchard (the trees above 5 years old) 34,164 3,000 Orchard (the trees below 4 years old) 17,082 1,500 Artificial High-yielding Camellia Oil Garden 34,164 3,000 Camellia Oil Garden (the trees below 4 years old) 17,082 1,500 Forest and Other Farm Land 12, House Site 22,890 Unused Land 22 6,883 Green Crop Compensation (CNY/mu) Table IV.2: Compensation for Land Acquisition in Linchuan District (2) 23 Land Compensation and Resettlement Subsidy ( /mu) Chonggang, Hunan, Luohu, ChangKai Yushan, Luozhen Towns Paddy Field, Cotton Field (AAOV = CNY 1,438/mu) 31,780 (22.1xAAOV) 1,000 Intensive Cultivated Pound 47,670 1,500 Pound 31,780 1,000 Merchandise Vegetable Land 47,670 1,500 Vegetable Land 31,780 1,000 Dry Land 21, Green Crop Compensation (CNY/mu) High-yielding Orchard (the trees above 5 years old) above 31,780 3, trees/mu Orchard (the trees below 4 years old) 15,890 1,500 Artificial High-yielding Camellia Oil Garden 31,780 3,000 Camellia Oil Garden (the trees below 4 years old) 15,890 1,500 Forest and Other Farm Land 11, House Site 21,293 Unused Land 6,356 Note: The standard of land compensation is same with the standard of Zhongling Subdistrict according to municipal government study in the project. 21 The land compensation rates have been increasing gradually each year in Fuzhou City, which appear to be acceptable for the affected people. 22 Most acquired land are either farmland or forest land with little areas being unused land. 23 The rates shown in the table are part of local compensation regulation adopted in Considering opinions of affected people, Fuzhou City Government has decided that compensation for land acquisition in Chonggang Town will use Zhongling Sub-District compensation rates. 32

46 C. The ADB Involuntary Resettlement Policies 1. Guidelines and Policies 82. The implementation of the Project shall comply with the above PRC s laws, regulations and decrees to meet the requirement of policies on the involuntary resettlement. ADB policies include: 1) Safeguard Policy Statement, ADB, June 2009, Safeguards Requirements II for IR 2. The ADB Involuntary Resettlement Policies 83. ADB Safeguard Policy Statement (2009) specifies the three important elements of the involuntary resettlement: (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it, especially for vulnerable APs. For any ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the project cycle, taking into account the following basic principles: 1. Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. 2. Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. 3. Improve, or at least restore, the livelihoods of all displaced persons through (i) landbased resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. 4. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host 33

47 communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. 5. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. 6. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. 7. Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets. 8. Prepare a resettlement plan elaborating on displaced persons entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. 9. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. 10. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. 11. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. 12. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports. D. Policy Differences between ADB and PRC Difference: Commonly, the infrastructure projects in the PRC do not need to prepare RPs (except for reservoir projects); however, all ADB financed projects that involve resettlement must prepare a RP. This is perhaps the biggest difference between ADB police requirements and Chinese practices. 34

48 85. Solution: This RP was prepared based on the policy requirements of ADB. This RP itself and the process of preparing it, to a great extent, bridge the various other gaps, described further in the coming sub-sections, between requirements of ADB and China. This RP: (i) was based on iterative consultation of local people and systematic surveys; (ii) has identified the APs and differentiated the level of impact; (iii) has identified the vulnerable groups and set a special support fund for them; (iv) quoted domestic and ADB policies and formulated a standard resettlement matrix to guide implementing agency to manage the whole resettlement process; (v) has formulated rehabilitation plan for severely affected HHs; and (vi) has included both internal and external monitoring. 2. Compensation for Structures/Houses Loss 86. Difference: ADB policies require compensation at replacement costs. Laws of the PRC accept reasonable depreciations and the compensation standards for old houses/structures could be lower than that for the new ones of the same structures. 87. Solution: Compensation standards are to be based on replacement costs without depreciation for the affected houses/structures of this subproject. 3. Compensation for Land Loss 88. Difference: ADB policies require that compensation should be sufficient to offset any income loss, and restore long-term income-generating potential. Chinese standards are based on average annual output value, which may be unrelated to the cost of income restoration. 89. Solution: Given that replacement land is unfeasible yet cash compensation is the preferred choice of most APs, this RP sets cash compensations for land as per recent policy. Compensation rate is high enough to enable APs to invest in income-generation activities or engage in new careers. Since it is difficult to guarantee the uses the compensation fees of APs, this RP includes and will implement various income rehabilitation measures and assistance to safeguard APs. In addition, FCIDC and external monitor will monitor the income rehabilitation status of severely affected HHs. 4. Special Assistance to Vulnerable Groups 90. Difference: ADB requires that special assistance is granted to all vulnerable groups, especially severely affected HHs faced with impoverishment risks. Chinese policy provisions do not require social analysis and such assistances, so compensation is based only on the quantity of loss. In practice, however, various assistances are provided throughout China, as well as in the subproject affected villages. 91. Solution: Special funds are set aside in this RP to assist the vulnerable HHs. These HHs will be specially monitored. 5. Consultation, Disclosure and Grievance Redress 92. Difference: ADB policies require that the APs are aware of all relevant information, and consulted with as soon as possible. Chinese provisions have improved the transparency of disclosure and compensation. However, APs do not play a strong role in decision-making, and the disclosure period is usually too short. ADB also requires that an effective grievance redress mechanism be in place to address the concerns of APs. 35

49 93. Solution: Consultation has begun at the early stage (before and during technical assistance) and future consultations will continue as per the consultation and participation (C&P) plan of this RP. FCIDC agreed to disclose this RP and related information to APs as required by ADB. Also, a grievance redress mechanism will be set out under FCIDC and included in the RP, and key content will be disclosed to APs in resettlement information booklet. 6. Legal Rights 94. Difference: ADB policies require all demolished houses/structures, whether legal or illegal, shall be compensated for at the same standards. According to Chinese laws, people without locally registered residence may not be entitled to the same compensation as local people. In addition, the prevailing Chinese laws stipulate that no compensation shall be provided for the acquisition of land and shanty owners, although such compensations are in places in practice. 95. Solution: This subproject does not have illegal houses/structures and all houses will be compensated. 7. Monitoring and Evaluation 96. Difference: ADB requires both internal and external resettlement monitoring. However, there is no such requirement in China, except for reservoir projects. 97. Solution: Both internal and external resettlement monitoring have been included in this RP. E. Compensation Rates Adopted for the Project 98. The compensation rates for acquired land areas will be based on Fuzhou Municipal Decree No. 17 adopted in 2011 and the executive notice for the Project. The compensation rates for land areas under the Project in Chonggang Town and Zhongling Sub-district will follow the compensation standard of Zhongling Sub-district. 99. The actual compensation rates for paddy land, vegetable land, pond and ditch is CNY 35,164/mu (CNY 1, ), for dry land CNY 23,690/mu, for slope land and forest land CNY 12,457/mu, and for house site CNY22,890/mu. The compensation for green crops: paddy land, vegetable land, and pond is CNY 1,000/mu, dry land CNY 800/mu, and hill land CNY 500/mu For lost houses and structures, the compensation rates will be based on Fuzhou Municipal Government Decree in 2012, titled Compensation Scheme for House Demolition under ADB s Loan Project. The policy has been reviewed by relevant department of Fuzhou City Government, and will be adopted prior to the implementation of the Project. According to the new decree, the compensation rate for houses with concrete frame structure is CNY 610/m 2, for brick-concrete structures is CNY 510/m 2, for brick-wood structures is CNY 370/m 2, for earth wood structure is CNY270/m 2, and for simple structures is CNY 210/m In terms of transfer allowance, it will cover the period between signing compensation agreement and completion of house construction plus three more months. Temporary transfer subsidy is calculated by the areas of affected households, with CNY6 per square meter. The minimum temporary transfer allowance is CNY400 per month per household. The moving cost 36

50 is set twice with CNY 800 per household one time and CNY1,600 per household in total. Adequate efforts will be made to minimize the transitional period Compensation for other attached facilities include: livestock shed and toilet CNY125/m 2, village public well CNY3,660/well, family well or pressure well CNY980/well, fence wall (above 1.5m) CNY 98/m, cement sunning ground CNY 65/m 2, biogas tank CNY980/piece, household water (including well, water pump, water storage tank and water pipe) CNY 3000/set, and house foundation CNY 150/m Compensation for single power meter is set CNY400 per household, cable television movement CNY 100 per household, and fixed telephone movement CNY 128 per household. F. Entitlement Matrix 104. A resettlement compensation entitlement matrix has been established as the basis for payment compensation, as set out in Table 4.3. Type of Impact Permanent loss of rural land areas Loss of Residential houses and properties Table IV.3: Resettlement Entitlement Matrix Application Definition of Compensation Policy/ Standards Entitled Person Acquired rural a) 6 villages 1. The compensations are executed land areas and 35 by doc. No. FMG [2011] 17, the located in the village notice on land acquisition issued by right-of-way groups FMG in December 20, 2011 and the (ROW) with a b) Farmers who executive notice of the project. The total of use the land compensations of Chonggang mu, c) 1,843 HHs of Township and Zhongling Sub-district including 7361 APs are executed by the standard of farmland, Zhongling Sub-district. slope land, woodland and 2. The compensations for paddy housing land land, vegetable land pond and ditch etc. is CNY 35,164/mu (CNY 1, ), for dry land CNY 23,690/mu, for slope land and forest land CNY 12,457/mu, and for house site CNY22,890/mu. 3. The compensation for green crops: paddy land, vegetable land and pond is CNY 1,000/mu, dry land CNY 800/mu, and hill land CNY 500/mu. Affected housings are 98, m 2 residential housings 569 HHs of 2450 persons from 11 village groups in 2 administrative villages 1. The compensation payments are executed in accordance with the Plan of House Demolition Compensation and Resettlement within the Scope of Planed by ADB s Loan Project based on the structure type and area of demolished buildings. 2. The compensation for housing: steel-cement structures CNY 610/m 2, brick-cement structures CNY 510/m 2, brick-wood structures CNY 370/m 2, Implementation Issues For affected village groups, all compensation will be distributed evenly among affected village members along with readjustment of remaining farmland affected village groups. All compensation will be distributed among group members. Green crop compensation will be paid directly to affected households. FCIDC will provide recommendations/assist ance for transfer to urban status. and, if required to facilitate urban transfers and training program Compensation shall be made directly to the APs. District and town will give assistance to APs. All relocated households have selected option of having replacement housing plots plus cash 37

51 and simple structures CNY 210/m Subsidy for temporary housing is increased by three months from the completion of resettlement houses. Temporary housing subsidy is calculated by the areas of APs original building with CNY6/m 2 and will not below CNY400 per month. Moving cost is set twice with CNY 800 per household one time. 4. Compensation for other attached facilities include: livestock shed and toilet CNY 125/m 2, village public well CNY 3660/well, family well or pressure well CNY 980/well, fence wall (above 1.5m) CNY 98/m, cement bleachery CNY 65/m 2, marsh gas tank CNY 980/piece, household water (including well, water pump, water storage tank and water pipe) CNY 3000/set, and house foundation CNY 150/m. 5. Subsidy for single power meter is set CNY400 per household, cable television movement CNY 100 per household, and fixed telephone movement CNY 128 per household. compensations. There is an additional option of exchange housing available to the AP who decide to opt for exchange apartments. The cost of acquiring such land areas, site leveling and related services will be paid by the project sponsor. District and townships will provide assistance on relocation. APs will move to a new housing site before their original house demolition, the transition allowance will be paid to APs. Loss of infrastructure Loss of trees Vulnerable groups Bridge, power supply line, water supply pipeline, gas supply pipeline, drain-pipe, communication line. Trees to be cut within the acquired area Owner of the infrastructure Owners of trees Income is below CNY130 per month Cash compensation will be made to the owner of infrastructure by the project proponent, while the owner of infrastructure will be responsible to relocate and rehabilitate them. Cash compensation for mature trees (above 1.5 m) at a compensation rate of CNY 100/tree. Fuzhou City Interim Procedures for Employment Assistance of Landacquired Farmer Employment (General Office of Fuzhou Municipal Government No.31 Decree on June ). Key service such as water supply and electricity will be available at all times through provision of temporary service prior to disruption. Wood or trees will be treated by their owners 1. For these vulnerable households who cannot make payment and can enroll into urban pension program and apply for CNY160 per month security payment. 2. For affected vulnerable households by land loss, priority will be given in terms of skill training, and employment introduction. 3. For relocated vulnerable households, local governments will provide special assistance in terms of 38

52 labor and financial assistance for house construction and relocation. 4. All vulnerable people confirmed by the project will be provided with additional financial support at CNY2000 per person. Economic rehabilitation measures for land loss APs Per capita farmland below 0.3mu after land acquisition Land loss APs who meet the requirement 1. For these APs who meet the requirement of endowment insurance, they can enroll into pension program for land loss farmers. 2. The government will pay 60% of total payment according to the standard of 15 years premiums, and the remaining will be paid by individuals. 3. For these APs who could not make payment and enroll into urban pension program, they could apply for old-age pension subsidy or urban and rural lowermost life ensures system. The security payment is CNY160 per month at present which will be adjusted to the wave of change by Fuzhou government. 39

53 V. RESETTLEMENT SCHEME AND INCOME REHABILITATION A. Resettlement Targets 105. The concrete resettlement targets for the project include the following: 1) Optimize the project design, by avoiding dense population/high buildings and minimizing the scope of impact of involuntary resettlement; 2) The resettlement of APs will be considered as a component of the project and sufficient funds will be made available to the resettlement process and APs will receive benefits from the Project; 3) Assistance will be provided to the APs during the process of removal and resettlement; 4) APs will be encouraged to take part in the preparation and implementation of the RP. Their opinions should be fully respected in the RP. B. Resettlement Population 106. In total, 1843 households with 7461 persons in 35 village groups of six administrative villages will be affected by the project. These numbers include people affected by both land acquisition and house demolition (569 households with 2450 persons). In line with the implementation schedule, the LAR will commence in the October Further details of APs are outlined in Table 5.1. Table V.1: Details of Affected Persons Administrative Village Village Group Type Household (HH) Population (Person) HH Sub-total Person Sub-project Zhujia Huangjia Group 1 LA & HD 101 (101) 460 (460) Phase II Zhouraojia Group 2 LA & HD 37 (35) 193 (104) Rehabilitation of Guojialing Group 3 LA & HD 135 (66) 380 (200) Fenggang River, Zhujia Group 4 LA & HD 103 (103) 421 (421) Zhanqian Avenue, Huangjia Group 5 LA & HD 83 (83) 345 (345) Waihuan Road, Gaoqiao Group 6 LA & HD 54 (9) 176 (50) Extension of Dongyangwangjia Gandong Avenue, Group 7 LA Extension of Xiazhang Group 8 LA & HD 33 (7) 130 (35) Jinchao Avenue Gongjia Group 9 HD & HD 16 (14) 80 (70) Raojia Group 10 LA & HD Jinjia Group 11 LA Xianxi Group 2 LA Public Group 3 LA Transportation Group 4 LA Junction, Waihuan Raojia Group 5 LA Road, Phase II Yufang Group 7 LA Rehabilitation of Yufang Group 8 LA Fenggang River Aijai Group 9 LA & HD 35 (11) 163 (163) Qiujia Group 10 LA Qiujia Group 11 LA Qiujia Group 13 LA & HD 36 (27) 318 (318) Fengjia Group 15 LA & HD 22 (18) 135 (135) Yufang Group 16 LA Fengling Dingjia Group 5 LA Waihuan Road, Phase II Rehabilitation of Fenggang River Shangxiaxiao G 6 LA & HD 95 (95) 313 (149) Fanjia Group 9 LA Tubeihandingjia Group 11 LA Fenggang Wairao Group 6 LA Extension of Hujia Group Muke Group 8 LA Lirao Group 11 LA Fenggang G 12 LA Shangzhang Huangzhaojia LA Gandong Avenue, Phase II Rehabilitation of Fenggang River Extension Jinchao and Zhanqian Ave 40

54 Administrative Village Village Group Type Household (HH) Population (Person) HH Sub-total Person Bailing Pengfangtangjia LA Huraojia LA Total 35 1,492 5,615 Note: The number of households affected by housing demolition are shown in brackets. Sub-project Extension Jinchao Avenue C. General Resettlement Strategy 107. The project will impact 6 villages of two towns, including Shangzhang and Bailing village of Zhongling Sub-district, Zhujia, Xianxi, Fengling, Fenggang village of Chonggang Town in Jinchao Economic Development District. The project will have significant impacts on the agricultural livelihood systems of the affected population as agriculture and farm related activities due to the severe loss of land. The social impact assessment revealed that the impact on incomes will be lessened because most APs earn most of their income from non-farm activities; nonetheless, the loss of farmland means that many APs will need to shift to permanent urban employment that provides a secure source of income and livelihood. The LAR strategy has been guided by ADB s SPS2009 to ensure improvements in the affected peoples living standards and livelihoods. Accordingly, the resettlement plan has been guided by taking in consideration the APs opinions and suggestion, and the actual condition of affected area. The basic rehabilitation plan is as follows: 1) According to the general Fuzhou City plan, the project falls within the scope of the city development plan. The APs will be resettled mainly by centralized resettlement within the newly planned urban areas and cash compensation. APs demolished houses and other attached facilities will be compensated at replacement value. The project stakeholder provides land for APs to build their houses by themselves according to plan demand. The stakeholder is responsible for land acquisition and three supplies and one leveling including supply of water, electricity and road and leveled ground (conditions ready for further economic development). The sub-district should unify land acquisition, construction standard and construction mode; control every household land within 100 m 2 ; check and issue the certificate of collective land use according to the principle of one household one house site. 2) For the affected administrative village and village groups that have relatively greater land resources (per capita farmland exceeding 0.3 mu), an equal distribution of land compensation according to agricultural population of village group, and readjusting remaining farmland according to population within the group will be carried out. 24 The administrative village and village groups that have less or no farmland (per capita farmland of under 0.3 mu), in principle, an equal distribution of land compensation according to agricultural population of village group, redistributing remaining farmland, and converting those qualified APs into non-agricultural status providing an urban pension program, skills training and employment will be carried out. There are many job introduction services provided by Jinchao District labor bureau. The survey shows that because the affected area is in Jinchao Economic Development District, affected labor forces will find employment in local enterprises or engage in the service industry. 3) The received compensation could actually facilitate an expansion of their businesses. APs could also use the money to invest, enroll in pension procedure or to fund their children s higher education, both are essential to improve people s living standards in the long term. Guidance in livelihood opportunities will be provided to APs by local government, especially for women. 24 As per the wish of the affected people, readjustment will be within the village groups. 41

55 D. 1. Production Resettlement and Income Rehabilitation Plan 108. The project is situated next to Jinchao Economic Development District, which is home to many companies that can provide job opportunities for the APs. In fact, the income of APs does not depend on land, most of APs have spent large amount of time as part-time/contract labourers in the project areas, with majority income coming from non-farm activities (such as industry, business, clothing industry, and so on). The affected labor forces are mainly engaged as part-time/contract labourers or in the service industry. For the agriculture income, one mu of paddy land can earn around CNY 750 for 900 kg of rice including both early season and late season rice. The total farming input costs for each mu of paddy, (including seed, chemical fertilizer, pesticide, hiring farming equipment, and pump) amounts to approximately CNY 1,000 1,300. The net profit of every mu of land is approximately CNY , if CNY 100/mu of grain subsidy is included the total profit of every mu paddy land is around CNY 800 (not including labour cost). For many local farmers, their farms are starting to be seen in some cases as a losing business, and a number of farmers are no longer farming with some of their farm land becoming redundant and left unfarmed. Those continuing with farming activities tend be those aged years old and those having difficulties finding alternative jobs. It should also be noted that even these farmers can also be involved in part time off-farm labour work as well. So the land acquisition has less impact on APs incomes Zhou Jianmin, an interviewee of villager in Zhoujia village, said that the net profit of every mu of land was approximately CNY while good compensation will be paid for land acquisition. Moreover, many villagers spent large amount of time as part-time/contract labourers. The land acquisition has less impact on their income. Land readjustment has been practiced by the villages in the project areas for some years. The government would transact endowment insurance and rural cooperative medical service for land-loss farmer (LAR conference at meeting room of Chonggang Town Government, Apr ) To achieve the rehabilitation of the affected areas, a resettlement target has been set to ensure that the living standards of the APs after resettlement do not decline and that the present per capita net income can be restored and improved. The APs production resettlement and income restoration strategy will respect affected groups choices and wishes. According to the socioeconomic survey, considering the geographic locations and available land resources of the affected villages and the preferences and desires of the APs, it is agreed that the rehabilitation strategy of redistributing land and compensation within village groups and guiding villagers to engage into secondary industry and the service industry will be adopted for the project. The APs will be able to recover or improve their incomes by land readjustment, employment, and off-farm job training. The project office and related government authorities implement job training, including household management, vehicle repairing, business service, gardening, etc. At the same time, the training contents will combine with the different demands of companies. The training will be paid by the project office. The training program and its effectiveness for securing employment will be assessed by the external monitoring agency. Because of being close to Jinchao Economic Development District, there are a lot of enterprises located there which require a lot of workers. According to the survey of Bailing Village, before land acquisition, there were only 60 persons working in those factories, and now there are 600 persons working in different factories. In general, the factories in Jinchao Development District offer many employment opportunities in shoe making, clothing, and manufacturing activities. 42

56 111. In order to mitigate adverse impacts of LAR, the project will take a series of measures to help and support APs, including: 1) readjusting and redistributing farmland; 2) payment of sufficient land compensation and guiding APs to use it reasonably; 3) strengthening APs skill training and arranging non-agricultural employment; 4) project related income generation opportunities; 5) participation in urban pension program for land loss farmers. 1) Readjusting and Redistributing Farmland (affected village group with per capital farmland exceeding 0.3 mu) 112. According to the survey, 21 village groups accepted redistributing remaining farmland within their own village groups as production resettlement. Because these affected village groups have relatively greater land resources (per capita farmland exceeding 0.3 mu). An equal distribution of land compensation according to agricultural population of village group is the usual practice in affected areas. It cannot resolve resettlement problem, but it is only one aspect of resettlement. Moreover, 14 village groups with per capita farmland of under 0.3 mu after land acquisition, including 5 village groups of Zhujia village (Huangjia Group 1, Zhouraojia Group 2, Zhujia Group 4, Huangjia Group 5, Gongjia Group 9), 5 village groups of Xianxi village (Aijia Groupo 9, Qiujia Group 10, Zhoujia Group 13, Fengjia Group 15, Yufang Group 16), Shangxiaxiao Group 6 of Fengling village, Fenggang Group 12 of Fenggang village, Huangzhaojia of Shangzhang village, and Huraojia of Bailing village will be enrolled in pension procedure. The enrollment will be optional. Moreover, the rehabilitation plan will encourage the farmers interested in continuing with farming activities to contract other person s land annually through land leasing arrangement, and guiding the others to engage in non-farm activities. 2) Payment of Sufficient Land Compensation and Guiding APs Reasonable Usage 113. The project provides adopted compensation for farmland. The compensation for land acquisition includes land compensation and resettlement subsidy, excluding compensation green crops based on discussion of Fuzhou Land and Resources Bureau and related departments. Because the farmlands belong to village collectives and the the remaining land will be redistributed, the land compensation is distributed equally according to agricultural population of village group. The highest per capita compensation is for Ganglia Group 9 of Zhujia village with CNY42610 per person, as the per capita land acquisition of the group is the most with 1.23 mu per capita. The details of land compensation are shown in Table 5.2. Table 5.2: Compensation for Land Acquisition Village Village Group Household (HH) Population (person) Acquired Farmland(mu) Total compensation (CNY10000) Amount/HH (CNY10000) Amount/per capita (CNY10000) Zhujia Huangjia Group Zhouraojia Group Guojia Group Zhujia Group Huangjia Group Gaoqiao Group Dongyangwangjia Group 7 Xiazhang Group Gongjia Group Raojia Group Jinjia Group Xianxi Group Group

57 Fengling Fenggang Group Raojia Group Yufang Group Yufang Group Aijia Group Qiujia Group Qiujia Group Qiujia Group Fengjia Group Yufang Group Dingjia Group Shangxiaxial Group 6 Fanjia Group Tubeihanjia Group Wairao Group Hujia Group Muke Group Lirao Group Fenggang Group Huangzhaojai Bailing Pengfangtangjia Huraojia Total Note: For all village groups, regardless land holding, they will redistribute remaining land areas and distribute received land compensation equally among all village group members It is important that compensation funds can be used in flexible ways so that APs income and livelihood can be restored or improved. For example, the compensation funds could be used to engage in a variety of income generation activities including developing individual businesses APs who have engaged in business/shop operation clearly stated that they will continue these endeavors, therefore the received compensation funds could actually facilitate expansion of their businesses. APs could also use the money to invest or to fund their children s higher education, both are essential to improve people s living standards in the long term The relevant government authorities will support the affected villagers to use their compensation to develop commercial real estate, leases or the running of shops in order to obtain stable incomes. Fuzhou Municipal Government and Jinchao Economic Development District Government will undertake initiatives to request that relevant agencies, including for industrial and commercial, taxation and sanitation, provide services to the APs for the establishment of their business entities. Preferential policies and measures including as tax reductions and exemptions alongside simplification of procedures are also important supporting measures to encourage business development. The PMO will liaise with various agencies on behalf of the affected people. 3) Strengthening APs Skill Training and Arranging Non-agricultural Employment 117. Social Affairs Bureau, the Labour and Social Protection Department of Jinchao Economic Development District, formulates employment information every month to the villagers, organizes and connects land-loss farmers with local companies for employment. The APs have a priority to employment. 44

58 118. For the APs with low educational level, the PMO will provide services to the APs, including training, free employment guidance, employment recommendation, free transaction of labour registration and management, and implementing transfer and training of rural labour forces. Based on consultation with the APs, in order to help the affected rural labours improve their employment prospects and their skill sets, particularly for women, a non-farming skills training program has been formulated. A series of free skills training sessions will be provided for APs for at least two persons for every affected family with 50% targeted for females. The target group will be young people with age between 18 and 40 years old. The training will focus on motorcycle, vehicle, tractor and farm machinery repair, maintenance and repairs of electrical appliances, product marketing and small business registration and operations. The skills training courses will be offered both on site and at the training center in Jinchao Economic Development District and Chonggang Town and can train 1000 persons one time. Payments will be made and directly disbursed to the training institution, e.g. the technical vocational school and the women s federation. For the self-employed APs, they will get preference for small secured loan financed by the PMO and the local government to develop their production. The effectiveness and implementation of these training and employment coordination programs will be monitored by an external monitoring agency The Linchuan District Government will assist those farmers who are employed for the first time and send them to the suitable factories. In addition, the integrated urban and rural labor market information service will be strengthened to improve labour-use management. For those farmer workers who are able and willing to work but not employed locally, the PMO will help introduce them to work in the surrounding enterprises or in the downtown area. For the land-loss farmers, especially men aged over 50 years old and women aged over 40 years old, the PMO will help guide them gradually into work in the social service sectors such as urban landscape maintenance, road cleaning, property management and housekeeping. Enterprises applying for participation in bidding on urban landscape maintenance, road cleaning and property management in the new towns and districts shall employ at least 40% local farmerworkers. In addition, the relevant government departments shall also try to create more public welfare labor posts and create more new employment channels to provide jobs preferentially to the land-loss farmers especially to men aged over 50 years old and women aged over 40 years old. a. Production Skills Training for APs 120. The resettlement skill training will focus on improving the APs knowledge and skills. The training will include integrated long term skills and short term key skills. Young AP s with the certain qualifications will be selected and sent to Agriculture University and Agricultural Science Academy for longer term training, which will help them develop the technical knowhow needed in the project area. A total 350 students will be provided with such opportunity averaging about 10 students per village group. The resettlement training center in province or city conducts different practical technique trainings to help APs and drive other APs common prosperity. The skill training will include: 1) Technical Training: sending APs children with a higher educational background or enthusiasm on recommendation to Agriculture University and technical vocational schools for longer term training. 2) Plantation Skill Training: training for APs in greenhouse vegetables skills, high quality hybrid rice skills, double-low rapeseed skills according to agricultural experts instruction at 45

59 a fixed time or demonstration as required (target xxx middle aged farmers with 50% female). 3) Livestock Breeding Skill Training: training APs for poultry feed skills, livestock farming skills etc according to agricultural experts instruction at a fixed time or demonstration as required (target xxx middle aged farmers with 60% female). 4) In order to facilitate affected people to perform various non-farm activities, a series of nonfarm skills training sessions will be provided for the affected people, particularly women and vulnerable groups, so that they are better prepared to be employed in non-farm activities in urban areas (target xxx young farmers with 50% female). Table 5.3: Resettlement Training Program for Affected People Types of Training Targets Percent of Females Cost (CNY) Technical School or Vocational School % 700,000 Plantation Skill Training % 300,000 Livestock Skill Training % 300,000 Non-Farm Skill Training 2,200 50% 1,100,000 Total Cost for Training 2,400,000 Schedule b. APs Training Investment 121. For affected people skills training program, totaling 3750 APs will be trained. Among them 350 will be provided education with vocational or technical schools; 3,400 of them will be provided with various skill training, with 1,200 for both plantation and livestock training, and 2,200 for various non-farm skill trainings. At least two persons of skill training will be provided for each affected household. The total cost of AP training is estimated to be CNY 2.4 million, with skill training at CNY 500 per person, and technical school at CNY2,000 per student. The other special cost is CNY 110,000 including special job and training. Total of 100 cadres will be trained, which will be delivered in 3 sessions with the cost CNY 124,300. The total cost for both resettlement staff training and affected people training is estimated at CNY 2,634,300. All of the training cost will be listed into total budget of resettlement. 4) Project Related Income Generation Opportunities 122. During the project construction stage, APs living near the river alignment work can seek income-generating opportunities, mainly providing services related to construction. For instance, APs could rent spare houses (if available) for construction contractors as a temporary office or as residence for construction workers, operate small groceries and provide food, cigarettes and beer/spirits for the construction workers. This could provide temporary employment for certain land-loss farmers as well as increase household cash income as a part of an integrated rehabilitation process with the construction program. Because the replacement apartments are well located and easily accessible, the APs choose the replacement apartments as compensation can rent their spare houses to get fixed and long-term income Project implementation agency will give priority to the APs for hiring them as non-skill labourers. The IA will provide job opportunities of 300 persons to the APs with at least 30% for female labourers, including leveling land, landscaping works, and so on. Although these works are temporary, the APs who are employed from such work will earn approximately CNY 1,500 per month. Arrangements will be made with contractors including setting up targets for providing employment to the APs in the bidding documents. The temporary income resources will facilitate 46

60 the improvement of APs living standard and restore their incomes at least in the short to medium term, because urban development will continue for many years in this area of the city The affected households will be trained freely by the PMO making arrangements with the related government authorities. All these employment generating measures will help restore affected households income and economic rehabilitation. 5) Participation in Urban Pension Program for Land-Loss Farmers 125. According to a new decree jointly issued by Fuzhou Human Resources and Social Security Bureau, Fuzhou Finance Bureau and Fuzhou Land and Resources Bureau on the Operations of Fuzhou Land Loss Farmers Joining Urban Pension Program (Fuzhou Municipal Government [2011] No. 19 decree, June 2011), the land-loss farmers aged above 16 years old and those whose total land is acquired or whose per capita cultivated land is lower than or equal to 0.3 mu, therefore not sufficient to maintain livelihood after land acquisition, are all qualified to enroll in an urban pension program The urban resident pension program is based on the mode of social pooling combined with an individual account. The cost of social security is born by the government, the collective and by the individual. Based on total premiums of 15 years, the government will provide 60% of the total funds, and the rest will be shared by individuals. The village collective may give part of the subsidy to individuals appropriately in areas where the collective economy is better developed. Based on such a decree, for those above the retirement age (males over 60 years old and females over 55 years old), after paying 40% of all the 15 years of premiums or CNY 15,436, they could start receiving an urban pension of CNY 600 per person per month, or CNY 7,200 per year. In addition, after they pass away, they will entitle to funeral subsidy about CNY one time For those men aged over 60 years old and women aged over 55 years old, all those who have lost land and do not have the ability to pay for their premiums, they could be provided with an old-age living subsidy of CNY 160 per month after applying for the subsidy. The subsidy standard will be increased by the municipal government according to economic development and future living level improvements. The local finance department of the government will pay the living subsidy to the social insurance agency each month according to actual condition. The social insurance agency will then in turn pay the applicants every month. The procedure provides basic social security for APs and also helps address one of the key areas of concern for the APs. In 2011, there were land-loss farmers enrolled in pension program in Jinchao Economic Development District For all of the measures, PMO is in charge of organization; the leaders of management committee of Jinchao Economic Development District, town government and village committee are in charge of implementation, and monitoring agency in charge of periodic supervision If the APs of Chonggang town and Zhongling Sub-district deposit their compensation in the bank, their annual interests incomes are CNY 1240 per mu based on 3.5% of bank annual interest and compensation rate of CNY per mu. These incomes exceed the net profit of farming CNY800 per mu. So the incomes of affected household will not decrease but will exceed the pre-project living standards. 25 This program was adopted in 2011 after careful studies. 47

61 130. Overall, the income recovery measures can more than make up lost income caused by land acquisition. The land compensation and resettlement subsidy will provide the APs with an opportunity to expand their business or be employed into companies. 2. Residential Housing 131. The project will cause the relocation of 569 households and 2450 persons, including 418 households and 1685 persons from Zhujia Village, 56 households and 616 persons from Xianxi Village, and 95 households and 149 persons from Fengling Village. All three affected villages are located within Chonggang Town in the Jinchao Economic Development District. Based on the target and principle of reasonable compensation, appropriate resettlement, and ensuring that the basic living conditions and livelihoods of relocated households are restored or improved, the affected households will be resettled by the project proponent according to the Notice on Implementation Project of Farmhouse Demolition and Resettlement Compensation in New Urban District of Fuzhou City (Fuzhou Municipal Government No. 25 Decree on June ) According to actual conditions of affected area and APs desire, the project provided three resettlement options, including replacement apartment, resettlement sites, and cash compensation Resettlement Options. Replacement Sites: For this option, the relocating households is provided a replacement housing plot in designated areas and is provided cash compensation for lost structures and attachments based on replacement values and other relocation costs, so that the APs can rebuild their houses according to unified plan requirements. FCIDC is responsible for preparing the replacement housing sites with the required infrastructure needed, including site leveling and connections to water supplies, electricity and access to the road network. FCIDC will develop the new housing sites with unified land acquisition, construction, standard and format. Each household will be provided with a new housing plot of 100 m 2. All will be provided with land use certificates in the names of both spouses Cash Compensation: For this option, cash compensation includes all losses of housing and attached facilities. The housing will be compensated one time. The standard of compensation is frame structure CNY 1900/m 2, brick-concrete structure CNY 1700/m 2, and brick-wood structure CNY 1500/m 2. Furthermore, the settled household will be compensated CNY 80000, and the separated household will be compensated CNY 70000, but will not be provided house plot Replacement Apartments: For this option, the affected households can get new urban apartments. If affected HHs demolished housing area is different from the area of the replacement apartments, they just need to adjust for the price differences according to replacement price. 26 If the affected HHs demolished houses area exceeds 600 m 2, they will get replacement apartment of 600 m 2, the exceeding area will be compensated by cash one time. If the affected HHs per capita residential area is under 50 m 2, they will be resettled by the replacement apartment with per capita 50 m 2, but they need to pay for the additional area. The standard cost for high-rise building with concrete structure is CNY 1120/m 2, and multi-story building with brick-concrete structure is CNY 920/m 2. If the APs replacement apartments are 26 Here, price difference refers to different types of structures between replacement apartment and demolished houses. Replacement apartments are considered as concrete frame structure with replacement cost being CNY610 per square meter. 48

62 smaller than the demolished house area, they will be compensated by cash one time; for the APs replacement houses bigger than they demolished houses, they need to pay for the exceeding area. If the exceeding areas are under 10%, they need to pay at cost price (including high-rise building at CNY 1519/m 2, building with multi-story at CNY 1100/m 2 ); if the exceeding areas are above 10%, they need to pay at a price of commercial houses. The distribution of replacement houses is on the basis of first demolition first served and drawing lots. According to the time of house demolition, the APs choose houses by sequence number. If the demolition times are same, the order is determined by drawing lots. After the APs get replacement apartments, they need to provide related documentation to the demolition unit to obtain the housing title certificate which is jointly handled by demolition unit and accountability unit of the project. After 5 years, the replacement houses can demand to be registered under commercial houses certificate of title. 27 The APs need to pay for land transfer fee according to basic land price and accommodation value on the date of application. Then the APs need to transact commercial houses certificate of title and pay related fees with rule Resettlement Site Options. There are two resettlement sites. One where the housing plots will be allocated to the relocated households and the other where the replacement apartments will be built. Since the whole area will be developed in near future, the resettlement housing sites will conform with the city plan. The selected two sites are state owned land after completing land acquisition procedures. a. Rural Concentrated Housing 137. According to APs demand, the resettlement site should be determined firstly. Based on consultation with the APs and taking into account local conditions, a resettlement site of 200 mu located between Guihua Silu and Jinni Avenue of Jinchao Economic Development District has been identified. The land acquisition of resettlement site will be finished in the end of June 2012, three supplies and one leveling (including supply of water, electricity and road and leveled ground) will be done from August to November These preliminary works will make good resettlement conditions for APs. The house plots will be distributed according to the principle of centralized resettlement, which every managed 22 and above will get a house plot with 100 m 2 and the household only with girl will get a house plot with 100 m 2. The project will provide convenient road for relocation and assist vulnerable households relocating. The APs relocation work will be finalized by the end of 2012 that is by this time the serviced housing plots will be provided to affected people and relocated households will be able to start the process of house construction. b. Urban Apartments 138. The site of replacement apartments of 115 mu (76784 m 2 ) located between Zhanqian Avenue, Zhanbei Erlu and extension of Gandong Avenue, Guihua Erlu has been identified. The area is next to main road of Zhanqian Avenue and Gandogn Avenue, 1.5 km far from Station Square and 3 km from old urban area. The site is very convenient for living because the Fuzhou Experimental School and Fuzhou No. 1 People s Hospital are near it. The construction of replacement apartment is charged by FCIDC. The design and plan working are currently under way. The work of three supplies and one leveling (including supply of water, electricity and road 27 This is a preferential provision to discourage the affected people to sell their residence. However, if they so desire they could do this after five years by acquiring commodity housing certificate. They will need to pay the relevant share (50% of the total fee, the other 50% paid by the city government) of land lease price before they could obtain such certificate. 49

63 and leveled ground) will be done by the end of 2012, construction will start in July 2013 and finished by the end of Distribution of House Plot. In Fuzhou, based on 2009 decree, there is a set of rules governing the distribution of housing plots and under what conditions, a separate house plot could be provided. They include: 1) With one household as a unit, one household will be distributed one house plot. If demolished houses consists more than one households, each relocated household will be given one house plot. 2) The APs aged 18 or above will be resettled by the separated household with a house plot. For those with age between 18 and 21, certain payment need to be paid, and for those 22 years old no payment needs to be paid. 3) The rural household only with girl will be resettled by one house site. 4) Widows and widowers over the age of 60 will not be granted approval of the separated household resettlement in principle. Every household will be compensated for CNY 10,000. He or she could get one house plot after payment of the CNY 10,000 for resettlement house plot. 28 5) There will be only one house plot provided to the APs who have two or more than two houses, and it will not distribute other land to them. The APs who meet the conditions of family splitting will be treated by the separated household regulation. 6) Regardless the size of exiting housing plots, each relocated household will be provided with a standard housing plot. The area of demolished housing that falls short of the regulated plot area, the relocated household will pay CNY 60/m 2 for the additional area. 7) The APs who have become urban residents before relocation but live in affected village and have housing area above 80 m 2 (including 80 m 2 ) will be provided with a house plot, but further household splitting is not allowed. The APs who have become urban residents have a house in the village below 80 m2 he will be provided with house compensation, but not to be provided with resettlement house site. This refers to the situation the affected household has already moved into town with an old house left in the village. The urban resident who has been resettled as off-farm employee will be treated as the same of present villager. 8) For the distribution of replacement apartment, the resettled household chooses the apartment by the order of signed contract and demolished housing (first come first served basis), and the apartment of separated household is determined by unified draw lots within the scheduled time. Based on above provisions, it is estimated that for 569 relocated households and separated households, a total of 951 replacement house plots or apartment will be required According to of Housing Demolition and Compensation within the Scope of Planning of ADB Loan Project, if APs choose replacement apartment as compensation, the subsidy standard for temporary housing is calculated by demolished housing area CNY 6/m 2 per month from signature of demolition agreement to achievement of replacement apartment key. The lowest subsidy will not be below CNY400 per household every month. In addition, the subsidy increases 3 month. If APs choose house site as compensation, the subsidy standard for temporary housing is calculated by demolished housing area CNY 6/m 2 per month from signature of demolition agreement to resettlement housing after completion. The lowest subsidy will not be below CNY400 per household every month. All households will be paid for twice relocation subsidy with CNY 1600 per household. Since both rehabilitation options 28 This is another preferential policy under the RP and refers to the additional house meant for separate household within the affected household, whereby an affected household can apply for more than more house plot. Following are the reasons which are based on local practices and regulations. The local practice differentiates those who are above legal marriage age (22) and those under. For those under 18 years, they will not get separate housing plots. On getting married in rural China, the wife will move to the house provided by the family of husband. That is why for male adult son, separate housing plot will be provided hence an incoming bride will have a separate house. For single parent above 60 years, the local practices encourage them to live with one of children in the family. If one wants to have separate house built, housing plot could be provided at cost. 50

64 require temporary transfer, which mean APs need to move twice before being resettled, the moving cost will be provided two times In order to encourage the affected persons to relocate ahead of schedule, they will be provided with a moving incentive of CNY 3,200 per household if their house is larger than 100 m 2 or CNY 18/m 2 if their house is smaller than 100 m 2, if they can sign the compensation contract and relocate their houses within a specified timeframe Reducing the period of interim transition. The infrastructure construction and replacement apartment will be finished as quickly as possible. The transition time will be shortened by (i) implementing site development options and (ii) postponing house demolition until it is imperative for road construction. E. Safeguard Measures for Resettling Vulnerable Groups 143. The FCIDC will pay special attention to the vulnerable groups resettlement during the course of the resettlement and relocation. According to the survey, for households affected by land acquisition, a total of 104 households with 205 persons are identified as vulnerable people, including 21 households with 32 persons from Zhujia village, 23 households with 36 persons from Xianxi village, 28 households with 74 persons from Fengling village,8 households with 12 persons from Fenggang village, 6 households with15 persons from Shangzhang village, and 15 households with 29 persons from Bailing village. These account for 3% of the total households affected by land acquisition. Among 104 vulnerable households, a total of 17 households and 27 persons will be affected by house demolition, including 11 households with 17 persons from Zhujia village and 6 households of 10 persons from Xianxi village The definition of vulnerable groups includes the elderly living alone, disabled people, rural households in which the woman heads the household and poor rural households. 29 For these vulnerable groups, the IA will give them special help in addition to the rehabilitation for their housing condition and economic rehabilitation according to project implementation plan: 1) For those vulnerable groups who qualify for the rural low income household status, the FCIDC will assist them in obtaining such status so that they will be provided with a monthly living allowance from the government. For those who are not qualified as rural low income but are above the retirement age, they will be provided with a monthly social security living allowance of CNY 160 per person. 2) To give additional financial and material support, the concrete financial and material support will be determined by the specific conditions and needs of vulnerable groups. In addition, for the vulnerable households will get extra subsidy of CNY 2000 per person one time. 3) To give priority support and help in training, finding jobs, providing social security to rehabilitate and improve their income and living. 4) To provide priority to vulnerable people in obtaining loans from the local credit unions and receiving guarantees from the local village collective after project implementation. 5) During the course of project implementation, the local village collective will provide priority to the elderly living alone, disabled people, and women headed households for choosing 29 The project involves only a Bai nationality woman named Wang Zhongmin in Zhujia village, 32 years old, primary school education. Her husband named Zhubin, 36 years old. She has a boy (10 years old) and a daughter (7 years old). She has integrated into the local communities. Her husband mainly does odd job, and her work is mainly farming and looking after her children. They enjoy a middle level standard of living in Zhujia. She will receive the same compensation and resettlement as the other villagers. 51

65 house plot/apartment and organizing labor forces to help them build houses and relocate. The elderly and the disabled will be given priority to obtain ground floor apartments. F. Gender Issues during Resettlement and Income Restoration 145. Compensation entitlements will be equal for both genders, including compensation, employment and training. However, women aged over 35 years old may have more difficulty in accessing employment opportunities. Therefore to address this constraint for women, the local township and villages have decided to directly incorporate training for women into the local government training program, called the 4050 program. The purpose of this training program is to help those laborers (both men and women) over the age of 40 in finding a job through training. Jinchao Economic Development District will provide training on certain public jobs where land-loss women will be given high priority for employment, such as landscaping and service areas The role of domestic helper employment opportunities for women is also important. Currently the minimum wage for a domestic helper is CNY 8/hour, therefore, if a trained female laborer can work 8 hours per day, 20 days per month, she will earn a monthly wage of CNY 1,280. This actually equates to almost one year s net income from farming. In Fuzhou city, the demand for domestic helpers is soaring and associated wages are attractive. Furthermore, the public transportation system of Fuzhou city provides excellent accessibility to the project area, and will be further improved under the Project. The transportation in place for the women to commute to the Fuzhou city is both convenient and affordable. To facilitate the support, a one-time CNY2,000 of transport allowance will be provided to each household so that they could purchase one motor bike for their daily commuting needs. In addition a Gender Action Plan (GAP) is developed to specifically meet project affected women s requirements. The GAP stipulates measures and targets for women s employment in various project related activities and includes both skilled and non-skilled areas. Women will also have priority for skill training under the livelihood rehabilitation plan (See Table 5-3 for details.). The textile enterprises in Jinchao Economic Development District have great demand for women and can arrange job for land-acquired women. The average monthly wage in this kind of textile enterprise was CNY1,786 in FCIDC will ensure a well-organized re-employment program is in place and implemented for livelihood restoration and improving living standards for both men and women. These provisions include: i) Employment to affected women in unskilled construction jobs, specific skilled jobs and other jobs such as greenery maintenance and landscaping jobs. The range of these jobs will depend on availability and is set between 20-50% (Reference Gander Action Plan developed for the project) ii) 50% women in livelihood restoration training for affected people if the women come forward to receive training. iii) Provide additional support to women whose farmland becomes remote from their residential areas due to the displacement (e.g. transport allowances, training priority 147. The GAP also ensures that women actively participate in resettlement activities for which specific targets have been set. The GAP also recognizes the specific transport related needs of women commuters and has set up well defined criteria to meet these requirements. 52

66 VI. PUBLIC PARTICIPATION AND CONSULTATION A. Objectives of Consultation and Participation 148. Public participation and consultation is an important part of the integrated rehabilitation and resettlement strategy for the project and will help ensure its success during RP implementation. According to relevant resettlement policy, the project sponsor has formulated resettlement policies and detailed rehabilitation measures in order to safeguard legal rights and interests of APs and affected communities, and to reduce disagreement and complaints. In this resettlement plan, detailed implementation arrangements and an institutional setup are also specified in order to ensure that the resettlement work can be implemented successfully FCIDC will pay special attention to participation and consultation for APs in the resettlement process and will listen carefully to the opinions and suggestions of the APs during the RP preparation and implementation. Finally, once it is approved, the RP will be disclosed to the APs, local officials, villagers and published on the ADB website, and a copy of RP will be placed the Fuzhou Project Management Office (PMO) and also in the town and sub-district office as well as affected villages to be accessed by the APs. The main contents of RP will also be summarized into Resettlement Information Booklet to be distributed among affected households. This will help ensure effective communication, consultation and most importantly ensuring acceptance by the APs. 1. The Consultation and Public Participation Approach 150. Consultation with local people began in the very start of project preparation. Before the survey, local governments were invited to review and comment on the survey outline and representatives of local government and communities were included in the survey team itself When the survey was conducted, both officials of local towns and village representatives were invited to participate. During the survey, the team members consulted with APs and explained in detail the importance of project, discussed the project benefits and impacts, the compensation policies for land acquisition and resettlement, the rehabilitation measures and the implementation schedule During the RP preparation, extensive discussions were held with relevant agencies and key stakeholders, including officials from Jinchao Economic Development District, Chonggang Town, Zhongling Sub-district and affected villages in order to identify basic opinions and any concerns with the land acquisition and resettlement, compensation policies and any other key issues needing to be resolved. The results of the consultations have been incorporated into the RP as far as possible. Meanwhile, the representatives of affected villages and towns also participated in the field survey. Consultation with key stakeholders and APs has also played an important role in selecting suitable resettlement sites. For example, the desires of APs to have replacement house plots as rehabilitation and general location of such resettlement are considered in selecting resettlement sites in the project areas. 2. Public Participation and Consultation Measures 153. Participation and consultation with APs is being undertaken in two ways: i) face to face meetings and ii) the sample survey of AP s opinions and desires. As mentioned these methods enabled the APs to get an understanding of the project purpose, importance and project activities and allowed for issues and concerns regarding the resettlement to be discussed and 53

67 resolved. The resettlement plan team made great efforts to promote effective public participation and stakeholder consultation, allowing and facilitating the preparation of the RP that will satisfy the APs needs During RP implementation, further stakeholder consultation including face to face meetings and household surveys of the APs will be conducted to collect the APs opinions and their desires to further improve the resettlement implementation In order to ensure that the APs and local government can fully understand the RP in detail, from the start until the delivery of the project, PRC laws and regulations on resettlement has been made known to the APs through a number of approaches including public participation and consultation (face to face meeting and written notices) and through media communications (TV and newspapers). This will ensure that that APs will be kept fully informed about the indices and quantities of the losses, the methodology to calculate the compensation rates, compensation entitlements, rehabilitation measures, disbursement and uses of resettlement fund proceeds, and preferential policies. The resettlement information will be publicized to the residents in the resettlement locations so that they can gain further knowledge on land acquisition, compensation rates and uses of funds. This will ensure that the resettlement process is transparent and that trust and support is gained from the APs. 3. Public Participation during the Finalization of the RP 156. During the preparation of this RP, stakeholders have taken part in a range of activities summarized below: (1) Between March and July 2011, the Fuzhou Project Management Office (FPMO), the RP preparation team, and representatives from the affected villages and APs all participated in the land loss census survey and socioeconomic survey. During the RP preparation, the FPMO and RP team visited the affected villages and village groups to hold several rounds of face to face consultation discussions and to undertake sample questionnaires obtaining stakeholder opinion and suggestions. This included suggestions related to the selection of the resettlement locations, rehabilitation measures and policies on the LAR. (2) The FPMO and RP preparation team initiated several public awareness meetings in April 2011 attended by local government agencies, leaders of the affected villages and representatives of the APs to introduce and interpret the prevailing resettlement policies issued by national, provincial and municipal governments and also to get their opinions on how to minimize the project impacts, how to resettle the APs and the compensation rates of various losses. All the concerning issues were extensively discussed and consulted upon. (3) During the resettlement planning process, the resettlement information was also publicized to the residents in the resettlement locations through holding face to face meetings attended by the leaders of villages and the resident s representatives. (4) In May and June of 2011, with the assistances of the various authorities of the affected area, a sampling survey on the APs willingness was conducted. Questionnaires were distributed to 115 AP households to assess the basic socioeconomic conditions of the affected households, APs resettlement desires and knowledge of the project. The survey achieved 115 questionnaires of 15 villages, including Group 1 of Sanbeihuangjia village, Group 2 of Zhouraojia village, Group 3 of Guojia village, Group 4 of Zhujia village, Group 5 54

68 of Sanbeihuangjia village, and Group 9 of Gongjia village in Zhujia administrative village and Group 13 of Zhoujia village in Xianxi administrative village. (5) In April 2011 the recognition rate increased greatly in the second survey which reached 82.7%. (6) Between May 2011 and May 2012, the officials and experts of ADB surveyed affected area more than 10 times and got information about APs attitude, requirement, compensation, resettlement plan, resettlement sites, etc. These consultations further enhanced APs recognition of the project. (7) The coordination department and engineering department of FCIDC consulted with villagers more than 10 times every month after the project was approved and initiated, which deepening the communication among FCIDC, village cadres and villagers, especially got information about land measure, land demolition, DMS, information publishing, etc. All of these efforts encouraged APs participation. (8) In March 2011 and May 2012 Jiangxi Academy of Social and Sciences carried out 5 measurement surveys and got 276 questionnaires, interviewed more than 500 villagers, held 6 conferences (on village and town cadres, old-aged person, women, village cadres management, RP discussion). Opinions expressed have been adopted in the RP and reported to stakeholders and Fuzhou Municipal Government. The opinions expressed by the APs and accommodated in the RP include uniform standard for land compensation increase in houses replacement price, choice of resettlement sites, and subsidy to vulnerable groups In late September 2011, after completion of Draft, a workshop was held in the Project Office, with a range of officials and representatives of local villages were invited to participate. The workshop introduced the RP, scope of impacts, compensation policies and rehabilitation measures. Comments and recommendations on the proposed resettlement program for the affected villages and individuals were collected and questions were answered by the project sponsor and local government agencies. Table 6.1 summarizes the consultation activities during the resettlement preparation. Consultation will continue to be carried out during resettlement implementation. Table 6.1: Consultation and Participation Conducted in RP Preparation Time Location Participants Content Main Results Mar. to July 2011 Apr Apr Sept village groups and 6 villages 15 village groups Chonggang Town Office Project Office Officials of Chonggang Town and representatives of 6 villages Village officials and individuals ADB mission, PPTA consultant, town officials, village representatives PPTA consultant, town officials, district agencies, village representatives Impact survey of all acquired land areas and all demolished houses by the project components Introduction of Project, and collection of opinions on compensation and rehabilitation Introduction of Project, ADB Policy and collection of opinions on compensation and rehabilitation Introduction of draft RP and collection of comments and opinions on compensation and rehabilitation A complete review of all impacts of land acquisition and resettlement by the Project Conduct social economic survey (questionnaires and small group discussions), among affected villages and households To ensure a better understanding of ADB resettlement policies and project compensation and rehabilitation approach by AP Disclose draft RP, collected comments and recommendations on compensation rates and rehabilitation measures (e.g. higher house compensation and higher transfer subsidy) 55

69 Apri and May 2012 June village groups and 6 villages Zhujia and Xianxi Villages The resettlement office of FIDC, Officials of Chonggang Town and Zhongling Subdistrict, and representatives of 6 villages The resettlement office of FCIDC, ADB resettlement and gender officials, Jiangxi Academy of Social Science, and Chonggang Town Detailed measurement survey of all acquired land areas and demolished houses by project components, which included participation of the affected persons. Consultations on proposed project, land acquisition and demolition impacts, feedback on proposed housing sites, and so on. A complete and updated scope of impacts for the Project, including different types of land areas and different types of houses and structures as well as number of households to be relocated. Both two villages were pleased to discuss proposed resettlement sites, compensation policies, and economic rehabilitation prospect for the Project 4. Public Participation during RP Implementation 158. Through this RP, the FCIDC will take measures to enhance public awareness and participation. A public consultation and participation plan and schedule has been developed for this purpose. The APs are encouraged to take an active part in the course of RP implementation. 5. Participation in Housing Relocation 159. Compensation Rate for the Housing Demolition. The compensation standards for housing will directly affect the interests of the relocated household. Before the homes are demolished, the relevant resettlement authority will consult, negotiate and sign an agreement with the relocated household regarding the compensation. The results of agreements will be declared publicly after the agreements are signed, so as to put the resettlement under public supervision. During the workshop in September 2011, the key comments raised by APs included that the proposed compensation for homes and attached facilities were based on the 2009 decree, which is relatively low. For example, the compensation rate for brick-concrete structure houses are only CNY 370/m 2 and a brick wood structure house is only /m 2. Secondly, the temporary housing subsidy is also considered not to be sufficient to cover the cost of rental housing during entire transition. APs suggested increasing house compensation and resettlement interim subsidy. In response, officials of the local relevant agency indicated to the affected people in the workshop that the 2009 decree is being updated by Fuzhou City Government. The updated rates will be applied to the project once it is adopted. According to draft regulation, temporary transit compensation will be set at CNY6 per square meter. For most of those who will be resettled in the new housing sites, the transit compensation will be paid between compensation agreement signed and time of receiving new housing plots, plus 6 months for new house construction. a. House Relocation Sites and Resettlement Modality 160. During the RP preparation stage, a survey was carried out for selection of the resettlement sites and deciding house resettlement modalities. According to the results of resettlement survey, most affected households are willing to select the resettlement scenario of being resettled in location nearby to their own villages. After consultation with relevant planning department and affected villages, one resettlement site has been selected. There are only three affected villages. Because of the whole area will be urbanized, only concentrated resettlement site is proposed. The local government will provide corresponding assistance to them at 56

70 different stages of housing demolition. The assistance will include development of new resettlement housing sites agreed upon by the affected people, providing related infrastructure on the site, and allocating housing plots or apartments to all affected households. b. Treatment of Original Old House 161. All relocation households will be compensated. The households may demolish the original housing before building new housing or according to their own wishes. The materials of the old housing can be used by the APs. 6. Participation in Production Resettlement 162. All individuals of village groups will participate in the readjustment of their remaining farmland holdings among their villages and redistribute all land compensations among all village group members so that they could use these funds to engage in various farming or non-farming activities. Such practice is agreed with all villagers. As outlined above, special attention will be paid to the vulnerable households and households who rely on most of their income on farming. 7. Participation in Disbursement and Management of Compensation Funds 163. In principles, the compensation for the land will belong to all members of affected villages groups. All land compensation will be distributed evenly among all members in affected village groups. The fund cannot be used until these have been discussed and agreed in a meeting attended by all village members and will be supervised by the villager representative. For acquired land areas under the Project, all compensation will be distributed among members of affected village groups. 8. Participation in Project Construction 164. The project construction will cause a number of impacts on local communities. In order to ensure the APs benefit from the project construction as far as possible, the local villagers/residents will be actively encouraged to take part in the construction activities, and favorable conditions will be created to use local materials and local labor forces. 9. Participation of Women 165. The project proponent and local governments have, since the outset of the project, attached high importance on the roles that women play in the RP. Demands of women and women headed households will be considered in full during RP implementation. The affected people will be informed about content of the RP through distribution of resettlement information booklet or other methods Women play an important role in economic development activities and housework and have equal rights, interests and social status in the affected area. Especially in rural areas, most women generally stay at home, and more and more men seek out off-farm jobs in the urban areas. Besides family responsibilities, women play an important role in farm and off-farm activities. Therefore, in the project affect area, it has been noted that women have shown more enthusiasm than men for the project. They are not only keen to take part in every stage of resettlement activities but also are keen to play an outstanding role in the consultation regarding the direction in which the APs are to be resettled and the resettlement modalities. 57

71 167. During the surveys, all directors of all women unions in affected villages were invited to participate in order to improve communication with affected women. In the small consultation meetings, more than 45 percent of participants were female. Besides supporting the project actively, they have showed that they pay close attention to the accuracy of surveyed physical indices, rationality of compensation standard and whether the rehabilitation can be realistically be achieved In the RP formulation, the RP preparation team actively invited the female APs to attend the stakeholder consultation discussions to obtain their opinions, concerns, requirements and issues on various aspects including the plans and measures of livelihood rehabilitation and income restoration. These consultations helped reduce the female residents worries about future income sources and the possible changes of traditional livelihood, ensuring that women can equally benefit from the project In addition, at least one female staff member is to be assigned to each of the RP implementation agencies, which will help facilitate and encourage women to participate in the RP implementation process. The resettlement implementation agencies and relevant authorities will attach further importance to female participation in resettlement activities, particularly through their livelihood rehabilitation and strong priority will be given to women for the employment opportunities generating from project construction Community based women s association s monitoring of various activities such as employment and training programs outlined in the Gender Action Plan will further strengthen their level of participation. Table 6-2: The consultation and participation plan for the next 12 months Responsible Objective Task Time Participants Remark Agency Publicize resettlement information booklet (RIB) Publicize DMS results and address grievances Distribute RIB in Chinese Discuss the DMS census of APs and the details of the inventory of losses June-July May July 2012 PMO and subdistricts PMO and subdistrict resettlement offices All affected households and work units in the first year All APs and communities Distribute RIB to each affected household and affected work unit, hold discussions and obtain suggestions Census and inventory of losses to be made public Discuss genuine grievances of the APs Discuss measures to address the grievances Publicize Draft RP Distribute draft RP in Chinese in the project areas, including PMO, town and subdistrict, and affected villages. PMO and subdistricts All APs and communities Place Chinese RP in local libraries and subdistrict resettlement working groups, discuss issues, and collect suggestions 58

72 Public consultation on RP seeking AP concurrence Holding meetings and face-tof-face interactions with the APs July 2012 PMO and subdistrict resettlement groups All APs and communities i) Hold discussions on entitlements ii) discussions and AP consultation on Livelihood restoration strategies and social preparedness Baseline survey for the affected households Interview sample household July/August 2012 onwards (for section in the first year) Independent monitoring organization 20% of significantly affected households Set up database for sample households, and Monitor the variation Detailed implementation plans for house relocation Village and town meetings PMO and subdistrict and village resettlement groups All APs and communities Work out the details for new resettlement sites, housing plots and house construction Detailed implementation planning for livelihood restoration Training program Village and town meetings Detailed plan prepared by PMO PMO and subdistrict and village resettlement groups and Labor Bureau PMO and training institutes All APs and communities All APs and communities Discuss livelihood opportunities and utilization of collective and individual compensation APs and village leaders participate in formulation and updating the training plan based on implementation effectivemess Internal monitoring Collect data and visit APs PMO, town and, sub-district resettlement working groups Affected villages and part of APs Set up and maintain resettlement database, and prepare internal monitoring reports External monitoring supported by community based monitoring Visiting part of affected household, work units and villages Independent monitoring organization Part of affected household, work units and villages Raise suggestions for implementation, and prepare external monitoring reports B. Disclosure of Resettlement Policy and 1. Publicize the Detailed Measurement Survey Results 171. Once the detailed measurement survey (DMS) is completed for the Project, the inventory of all types of impacts will be published and made available to the affected people and communities. Such disclosure will be carried out to all affected people at least 1 month before the compensation payments are made. 59

73 2. Clarify the Compensation Policies 172. Following the Land Administration Law, prior to land acquisition, the affected villages will be informed about the compensation scheme, which includes compensation standards for both land acquisition and house demolition. All specific compensation rates and amounts will be publicized at least 1 month prior to the implementation of land acquisition and resettlement. 3. Resettlement Information Disclosure 173. Detailed resettlement information will be disclosed to ensure that the local government and people in the affected areas know the details of the resettlement plan and compensation regulations and standards. The Resettlement Information Booklets (RIB) will be distributed to the affected households. The resettlement information to be disclosed covers compensation policy and resettlement measures, the entitlements and grievance procedures. Resettlement information will be disclosed through local newspapers to all affected persons. Relevant land acquisition and relocation announcements will also be issued through local newspapers, radio, television broadcasting, and posted bulletins to disseminate the resettlement policy, compensation standard and complaint channel in the subdistricts and villages affected using easy language that the APs readily comprehend. This will be uploaded on ADB website, and will also be available in town and subdistrict offices, and put in local libraries to facilitate the APs to read with an official notification displayed in the project affected villages. 4. Holding Meetings 174. Public meetings will be held to explain relevant policies, laws and rules and compensation criteria in detail so that the APs know these before the implementation of land acquisition and resettlement and to discuss resettlement options and preferred plans for house relocation and livelihood rehabilitation. This includes the scheduling of resettlement activities in a manner that is convenient for APs. 5. Community Participation 175. The affected communities will be encouraged to participate in housing relocation and livelihood restoration, especially for the seriously affected villages. Assistance from the All China Women s Federation s (ACWF) and Social Welfare Offices will ensure that women and elderly are fully informed and participate in the preparation and implementation of house relocation and livelihood restoration activities. Community-based monitoring and evaluation (M&E) will also be encouraged to provide regular feedback to the PRO and local governments. 60

74 VII. GRIEVANCE REDRESS MECHANISMS 176. The public participation is always encouraged in the process of preparing and implementing of the RP. There will be always some unforeseeable problems occurring in the process of RP implementation. In order to solve problems effectively and ensure the project construction and land requisition are carried out successfully, a transparent and effective grievance redress mechanism has been set up. A. Grievance Channels (1) The report of local resettlement office including public grievance, schedule, work measures, existed problem. (2) Implementation daily record; (3) The problems in land acquisition and coordination in patrolling by stakeholders construction agency. (4) Related information reported by external monitoring agency. (5) Letters and visits of affected persons. (6) Information reported by working stations which branch organs set by stakeholder construction agency. (7) Related questions reported by auditing department, discipline inspection department, etc. (8) Expenses of compensations for land acquisition and house demolition from fund details of bank. (9) Investigation on internal monitoring Grievance Procedures. The key steps of the grievance procedure are outlined below: Stage 1: If APs have any dissatisfaction with RP or implementation, they may directly report to the village committee for negotiated resolution or put forward oral or written grievance. The village committee will record the complaints and resolve the problems within two weeks after the receipt of the complaints if the grievance has been communication orally. The complaints should be copied to the FPMO to maintain a file on the status of all complaints. Stage 2: If APs have any dissatisfaction with RP or implementation, they may directly report to the town or sub-district resettlement office for negotiated resolution or put forward oral or written grievance. The resettlement office will record the complaints and resolve the problems within two weeks after the receipt of the complaints if the grievance has been communication orally. The resettlement offices need to report to the superior resettlement office within two weeks and get its opinions if the grievance involves major matters. Stage 3: If the APs who lodge a complaint are not satisfied with the results of Stage 1, they may lodge grievance to FPMO after receiving the decision within one month. The latter will make a resolution within three weeks. Stage 4: If a complainant is still not satisfied with the decision given in Stage 2, after receiving the decision they may take their complaint to the Jiangxi project office for arbitration within one month. The latter will make an arbitration decision within four weeks At any point, if a complainant may appeal to civil court APs can appeal on any aspect of resettlement, including compensation criteria and price. The relevant authorities will sort out the opinions and proposals of the APs and the 61

75 resettlement offices and FPMO will process the information in a timely and effective manner. These organizations will accept the grievance and appeals of the APs free of charge, and the reasonable expenses incurred there will be covered by contingency of the RP budget The aggrieved person may also express grievance to the external monitor, who would then report it to the PMO. Alternatively, the aggrieved person(s) may submit a complaint to the ADB s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, they may submit their complaint to ADB's Accountability Mechanism (2012). 30 The first step requires good faith efforts to resolve the problem with the ADB Project Team. B. Principle of Grievance Treatment 181. Resettlement offices at all levels must investigate grievances, consult with the APs and the community, and put forward corrective measures according to state laws and regulations and principles and standards of RP. For the unresolvable treatment grievance, the resettlement offices must report it to superior department and assist investigation If the decision taking department in the preceding stage did not reply to grievance within specified date the complainant has right to appeal to a court The affected women may have their special grievance and complaint channel during the course of resettlement. The project office will employ at least one woman to treat women s grievance. Local government and non-government organization such Department of Civil Affairs, women's federation will monitor resettlement activities, and safeguard women s rights. C. Reply to Grievance (1) Summary of complainant s grievance. (2) Result of investigation. (3) Relevant State regulations, principles and standards of RP. (4) Proposed corrective measures and justification. (5) Complainants have right to appeal to superior resettlement department and civil court, and the reasonable legal costs will be paid by the PMO Manners of Reply to Grievance: (1) For individual grievance, the reply will be given to the complainant directly in written. (2) For grievance submitted by a group of APs, the reply will be conveyed to the complainant through villager (or residential) meeting or other information dissemination to complainant s community Each of the manners must deliver the reply to complainant s resettlement department. D. Record, Feedback and Follow-up of Grievance 186. During the implementation of RP, the department of acquisition and demolition should record and manage information of grievance and treatment, and put forward written information to the coordination department of FCIDC every month. The coordination department will take a periodic check on the corrective information of grievances to ensure whether the correction

76 action was effective? Whether the grievance was resolved to satisfaction of the AP? Whether any further action required or whether the case is closed? 187. In order to record APs grievance and the correcting of related problems, the coordination department of FCIDC formulated registration form of grievance. The form is shown in Table 7.1. Table 7.1: Complaint and Grievance Unit: Time: Place: Treatment Name Content Requirement Solution Result Further Treatment Complainant Recorder (signature) (signature) Note:1. Grievance content and requirement. 2. No disturbance and obstacle in grievance. 3. Solutions should be replied to complainant in set time The main content of this chapter has been disclosed to affected groups, and information dissemination conveyed publicly to every affected household Contact Information. The resettlement office of FCIDC will arrange main principal in charge of APs dissatisfaction and grievance. Wu Huiwu Tel: Manager of coordination department of Fuzhou Urban Investment Development Company 63

77 VIII. INSTITUTION AND RESPONSIBILITIES A. Institutional Setup 190. A resettlement leading group for the proposed Project was set up by Fuzhou City Government in August 2011 and Fuzhou Urban Investment Development Company (FCIDC) is the implementation agency Under FCIDC, a resettlement department was established. The staff of resettlement department will work closely with key local agencies and form a resettlement task force for the Project, which includes Fuzhou City Land Resources Bureau, Fuzhou City Demolition Office, Jinchao District Government, and Chonggang Town and Zhongling Sub-District Government, as well as Project affected villages. The institutional setup for land acquisition and resettlement is shown in Figure 8-1. Resettlement Leading Group Fuzhou Urban Investment Development Company (FCIDC) - PMO Engineering Department Resettlement Department Planning & Financial Department Administratio n Department Resettlement Taskforce (Jinchao District, Fuzhou Land Bureau, Fuzhou City Demolition Office, and Chonggang Town and Zhongling Affected villages, and Affected People Figure 8.1: Resettlement Institutional Setup 192. The resettlement taskforce will play a key role for carrying out land acquisition and resettlement. Apart from the institutional setup shown in the figure above, there is also an external resettlement monitoring agency to be responsible for carrying out resettlement monitoring and evaluation for the Project. 64

78 B. Responsibilities 193. The responsibilities of relevant agencies are shown in Table 8.1. Table 8.1: Responsibilities of Relevant Agencies Agency Responsibilities Resettlement Leading Group Fuzhou Urban Investment Development Company (FCIDC) Takes charge of decision and construction of the Project,; Formulates key resettlement policies for the Project Allocation of financial resources for the resettlement implementation for the Project The members of RLG includes senior officials from various city departments, including FCIDC, Fuzhou Land Bureau, Fuzhou City Demolition Office, Jinchao District, Chonggang Town, and Zhongling Sub-district, etc. Preparing RP Organizing public consultation and participation Disclosing resettlement information, including distribution of RIB Supervising resettlement fund payment Coordinating and supervising resettlement activities and progress Carrying out internal M&E and reporting to the PMO Settling conflicts and problems Preparing Project resettlement plan and implementing Fuzhou City Land Resource Bureau Resettlement Task Force for the project Town and Sub-district Office Making relevant LA&R polices Take part in RP preparation Issue land occupation license for the Project Directing, coordinating and monitoring land acquisition and resettlement activities Settling conflicts and problems Take part in RP preparation, reviewing and approving RP Handling AP s grievance Implementing RP Applying relevant resettlement procedures Signing resettlement compensation agreements with affected villages and APs Assisting FCIDC, FLRB and FCDO to carry out LA&R in a transparent way Solving conflicts and problems Reporting to FCIDC, FLRB, and FCDO on problems without resolution at town or subdistrict level 65

79 Agency Responsibilities Community/Village Committees Participating in socio-economic survey Participating in preparation of resettlement plan Assisting IA for public consultation, Assisting LA&R Office to implement RP Reporting AP s opinions and suggests to authorities Providing assistance to vulnerable HHs Providing technical support to land acquisition and resettlement. External Monitor Monitoring RP implementation Reporting to PMO and ADB C. Capacity Building 194. ADB will provide assistance to train the staffs who will be engaged in resettlement activities for the project. ADB will help strengthen institutional capacity building through special training course by ADB resettlement specialists and PPTA consultant before and during resettlement implementation. 1. Staff Training 195. The FCIDC will organize a series of training of resettlement staff of key agencies on: (i) ADB s policy requirements on involuntary resettlement, (ii) national polices; and (iii) good practices of similar projects in Liaoning and other provinces. The training on these policies and specifically on implementation of the RP will start in July Measures to Strengthen Capacity Building 196. In additional to the various training arrangements, the following measures will be taken to strengthen the capacity building: (i) FMG and FCIDC will have sufficient staff, fund and equipment; (ii) FCIDC will establish resettlement related database. (iii) Quarterly coordination meeting will be organized by FCIDC among all involved agencies. a. Supervision and Monitoring Organizations 197. As the project management agency, the project resettlement management office set by FCIDC shall preside over and check internal monitoring, prepare the progress report on the LAR on the regular basis and report to Fuzhou Project Management Office. It will also identify any issues and problems incurred during the implementation of the RP and propose suitable remedial measures for the relevant agencies to take forward, so that the duties and responsibilities of resettlement institutions at all levels in the course of project implementation can be soundly performed, their activities can also be coordinated satisfactorily and the RP implementation status can be held. 66

80 198. The external monitoring agency will: provide technical consultation advice to internal monitoring and management of the project management office; provide overall information of the resettlement implementation to the municipal project management office; and report resettlement progress, problems and treatment suggestions to the FPMO. b. Resettlement Management System 199. The project proponent responsibility systems, project supervision system, project bidding system and contract management system will also be adopted in the RP implementation management process. The project resettlement management office affiliated to FCIDC undertakes the responsibility to manage the RP implementation activities, tendering and bidding of specialty and infrastructure construction; engages the independent agency to conduct external resettlement monitoring on the RP implementation. In addition, a computerized resettlement information system that connects with all the resettlement management offices is required to be developed to properly manage all the resettlement data and records. c. Staffing and Facility Provision for Resettlement Organizations i. Staffing 200. To ensure smooth implementation of the RP, all the resettlement implementing agencies and management agencies will be staffed with competent and qualified personnel, which will help facilitate and improve information flows among the resettlement agencies. The staff will be administrative clerks and professionals with management qualifications and work experience of resettlement. ii. Provisions of Equipment Facilities 201. The equipment facilities refer to the offices of the resettlement agencies that will be equipped with offices, vehicles, office facilities and equipment, communication equipment, etc. The costs to purchase the equipment and facilities are planned by resettlement agency and incorporated into the preliminary expenses of resettlement cost estimates. d. Training Plan 202. The training program for APs and management staff at the resettlement agencies will be formulated and carried out to ensure that the RP can be implemented effectively. The training programs include: resettlement implementation and management for the administrative staffs of the resettlement management agencies Resettlement Management Staff Training. The resettlement personnel training and human resource development system for the agencies of various levels from the municipal level down to the village will be developed. Various types training methods can be adopted including leader/expert lectures, technical seminars/workshops, visiting and studying the similar resettlement works in other areas, and on-spot trainings for the technicians and staffs. A total of 100 persons for training will be provided for the staff involved in resettlement and rehabilitation for the Project Training has been provided by the PPTA consultant and the visiting ADB resettlement specialist during the Missions. During the initial stages, training focus was on the SPS (2009) 67

81 requirements. Further training on RP implementation and monitoring for the resettlement staff at the PMO will be carried out with the help of experts and in consultation with the ADB The training modules include the following: 1) Resettlement principles and policies, including the ADB policy on involuntary resettlement, the RP, PRC s resettlement policies and work procedures etc.; 2) Resettlement planning and implementation management; 3) Resettlement implementation planning design; 4) Resettlement schedule management: 5) Financial management on the resettlement funds; 6) Management information system; 7) Enhancing public participation and consultation during RP implementation 8) Redressing grievances 9) Resettlement monitoring and evaluation; and 10) Resettlement activities management. e. Measures for Strengthening the Resettlement Organizations 1) At each level the resettlement agency will define its responsibilities and scope of official duties and also strengthen its supervision and management roles. 2) The staff of various resettlement agencies will be strengthened gradually, particularly professional and technical staff. Staff at all levels should have a level of professional standards and management quality, and their technical equipment, such as computers, testing equipment and vehicles, will be improved. 3) Staff should be selected carefully and their professional skill will be strengthened. Various staff and technicians will be trained to improve their professional ability and management standards. 4) Women cadre should be allocated their tasks properly to play their important role in the course of resettlement implementation. 5) Databases will be set up to strengthen information feedback, where the information is open and the important problems are solved by the leading group of resettlement. 6) The report system and internal M&E will be strengthened. 7) The external resettlement monitoring and early alarm mechanism will be fully developed. 8) The GRM will be established and strengthened as required. 68

82 IX. MONITORING AND EVALUATION 206. The project will regularly monitor and evaluate the implementation of the LAR activities in order to ensure that the resettlement work is implemented successfully and it achieves the target of appropriate livelihood restoration for the APs in accordance with the requirements of ADB. The monitoring plan will comprise of two key components: internal monitoring and external monitoring detailed in the following sections. A. Internal Monitoring 1. The Organization of Internal Monitoring 207. The aim of internal monitoring is to ensure supervision responsibility of the resettlement organs as specified in the RP during implementation, and ensure that the Project is implemented smoothly and the APs legal rights are not compromised. Internal resettlement monitoring activities will be undertaken by the Fuzhou Project Management Office, which has a full-time leader, taking charge of the project. The leader should have experience of resettlement so that he/she can effectively coordinate all departments in resettlement work. The organization should have enough staff with the knowledge to deal with resettlement work and social concerns The FPMO will develop an internal monitoring framework to supervise the resettlement activities; it will establish a database for the land requisition, housing relocation and resettlement; and it will monitor the whole process of resettlement During the implementation stage, the resettlement offices at all levels will establish relevant sections of the database and update them along with the resettlement progress for planning the resettlement work in their own areas. They will also timely transfer the on-going activity records and report the resettlement implementation progress to the resettlement office so that a continuous monitoring can be realized. 2. The Objectives of Internal Resettlement Monitoring 210. The objectives of internal monitoring are: 1) To enable the resettlement organizations to maintain strong functioning during the whole implementation process. 2) To coordinate all departments work. 3) To take hold of the situation of resettlement implementation whenever required. 4) To ensure all responsible units follow the principles of the RP and implement LAR according to the set timetable. 5) To identify problems and find appropriate solutions in a timely manner. 3. Elements of Internal Monitoring (1) Allocation and utilization of the resettlement compensation (2) Land acquisition certificates and building permits for resettlement sites (3) Design and preparedness of resettlement sites 69

83 (4) Allocation of housing plots and apartments in the later case wherever APs opt for these. (5) Support to vulnerable groups and other households at risk (6) Training of the APs (8) Women s livelihood restoration, safety, habitability (10) Scheduling of all land acquisition and resettlement tasks, and relationship to the civil works schedule (11) Implementation of the policies in RP (12) Public participation and consultation during implementation (13) Grievances and appeals, the process and the results (14) Staffing, training, work schedule and work effectiveness of resettlement offices at all levels. (15) The availability of budget and flow of funds. 3. The Responsibilities of Internal Resettlement Monitoring 1) To coordinate between FCIDC, other local government authorities and the external monitoring agency. 2) To formulate relevant formats according to the monitoring contents and require FCIDC to prepare a monthly progress report to FPMO 3) To supervise the implementation of the annual working plan, fund use and the annual fund audit. 4) To report project implementation progress to FPMO on a quarterly basis included in Quarterly Progress Report to ADB and be able to consult with authorities anytime matching the desired need. 5) To submit internal M&E reports regularly and attach to the project progress report to the FPMO and ADB on a quarterly basis. 6) Prepare a resettlement completion report within one year of LAR activity completion and submit to FPMO and ADB. B. External Resettlement Monitoring 1. Independent Monitoring and Evaluation Agency 211. The aim of external monitoring and evaluation (M&E) undertaken by an institution independent from FCIDC is to monitor and evaluate whether the resettlement objectives are realized and that APs are satisfied. Through the process, evaluation opinions and recommendations will be put forward on the resettlement, housing relocation and restoration of the APs living standards, and to provide a predictive warning as early as possible to the project management. 70

84 212. The external monitoring institution will report independently to the Resettlement Leading Group, the FPMO and ADB. It will conduct follow-up investigations, monitoring and evaluation of the resettlement activities and socioeconomic rehabilitation objectives according to the RP and provide advice for decision-making and mitigation measures The FCIDC with the concurrence of ADB will engage an independent LAR M&E agency to conduct external M&E activities for this project. The independent agency will follow the project activities and evaluate the resettlement work assessing: 1) Whether the relevant state and local policies of LAR are being carrying out; 2) Whether the resettlement policy of ADB is being met; and 3) Whether APs living conditions and livelihoods are improving The independent agency will provide overall implementation information to PMO, provide a resettlement schedule, problems and treatment suggestions to PMO, so that the problems will be solved quickly during the implementation process The selected external monitoring agency for the project will conduct baseline survey, carry out basic monitoring work during the course of resettlement implementation and provide technical assistance on the resettlement survey and APs living standard survey to PMO. 2. Effects and Responsibilities of External Monitoring Agency 216. Monitoring and evaluation is one of the most effective tools in the resettlement project management program. The objectives of the independent M&E is to provide the evaluation to resettlement work with an overarching view point and to evaluate whether the objectives of resettlement are being achieved, in terms of delivery of all entitlements included in the RP, implementation of all required mitigation and rehabilitation measures agreed in the RP, and whether the income and livelihood of affected people have been restored or improved through resettlement and rehabilitation. The independent agency will trace the resettlement activities, provide evaluation opinions and suggestions over whole course of resettlement and APs rehabilitation of living and production, and provide the option channel for APs. It will also ensure that the plan and implementation of resettlement meet the state law and regulation requirements and ensure that project achieves its objectives. The objectives of external monitoring agency will include: (1) Checking the result of internal monitoring. (2) Evaluating resettlement aim especially the rehabilitation or improvement of APs living standards. (3) Evaluating the efficiency, effectiveness, influence and sustainability of resettlement, and drawing lessons from resettlement experience. 3. The Content of External Monitoring and Evaluation 217. The independent agency will confirm whether APs have received the entitlements specified in the RP and whether their income and livelihood have been restored or improved through implementation of land acquisition and resettlement. The contents of external monitoring report will also include (i) preparedness and capacity of resettlement institutions; (ii) implementation schedule of resettlement program; (iii) compensation policies and rehabilitation measures for land acquisition and housing demolition and relocation; and (iv) follow-up survey and analysis of changes of income and livelihood of affected people and the living conditions in the new housing areas. The details of external monitoring are as follows: 71

85 (1) Baseline survey among affected people in order to have a basic understanding of income and livelihood of the APs prior to the implementation of resettlement program. Sampling scale for such baseline survey will meet the following criteria: -10% of land loss households; 20% of seriously affected households, defined as those who have their houses demolished or those who have lost more than 20% of their farmland; at least 30% of affected village groups will be covered with a focus on all the seriously affected village groups; 25% of the vulnerable APs. At least half of the sample size will consist of women participants. (2) The monitoring and evaluation during the resettlement implementation: including public consultation and the APs participation during resettlement, especially participation of women and other vulnerable groups, complaints and appeals. (3) Assess the provisions of APs rights and interests including APs understanding of their rights and interests during resettlement, such as whether they could get compensation, how much compensation they could get, whether they could get it on time; whether they could get resettlement interim subsidiary and relocation allowance on time; the preparation of resettlement location and whether the location site is adequate. (4) The rehabilitation of production and living resettlement including APs production resettlement, APs skill training, APs participation into endowment insurance, APs employment assistance, APs employment condition, etc. (5) Using the survey analysis of APs livelihood and living including the index contrast of APs living evaluation between pre-resettlement and post-resettlement, and evaluating the change of APs living quality. (6) The operation evaluation of EA including the APs satisfaction to the RP implementation, the problems in the resettlement, analysis and conclusion of experience and lessons draw from the project. (7) Effectiveness of livelihood training program. (8) The independent monitor will generate indicators that will be disaggregated by sex, income level and age group During the monitoring, vulnerable groups should be monitored carefully including change of status, effect and condition of women in the community; the difficulties of the poor households, the disabled, the elderly and other vulnerable groups during resettlement and post resettlement. 4. Independent Monitoring and Evaluation Methods 219. Monitoring and evaluation will be performed on the basis of analysis of the existing survey data with the survey design institution and resettlement implementation institutions, independent sample surveys, key informant interviews and rapid rural appraisal techniques. 5. Independent Monitoring and Evaluation Steps 220. The independent monitoring and evaluation steps include: 1) Establishing the project, and defining M&E objectives, contents and requirements. 2) Formulating detailed M&E. 3) Formulating the survey outline and tables. 4) Designing the survey plan and defining sample households. 5) Baseline and the first survey. 6) Establishing an M&E information system. 7) Monitoring the effectiveness of resettlement implementation organizations. 8) Sample household monitoring. 72

86 9) Sorting monitoring information and establishing a database. 10) Analysis of survey data. 11) Writing the M&E report and submitting it to PMO and ADB. 6. Monitoring and Evaluation Periods, Frequencies and Standards 1) Monitoring periods: independent monitoring agency worktable includes project construction period plus two years after resettlement is completed. 2) Monitoring frequencies based on the arrangement of resettlement implementation schedule and strength. The M&E agency will provide M&E reports to FPMO and ADB at least twice a year during RP implementation period and thereafter annually for at least two years. 3) Monitoring standards are specified in Section (1). 4) For monitoring reporting time the independent evaluator should prepare and submit the external M&E reports to FPMO and ADB twice in December and July every year during RP implementation period and thereafter once in December every year for two years or until resettlement is completed satisfactorily. C. Community Monitoring 221. For two seriously affected villages: Zhujia and Xianxi, community based monitoring will be carried out during resettlement implementation. 3 to 5 representatives from these two villages will be selected and they will monitor the whole process of resettlement and rehabilitation for the affected people. D. Post Assessment of the Resettlement 222. After the completion of the resettlement implementation, on the basis of monitoring and evaluation, a post evaluation and assessment of the resettlement plan will be conducted. The assessment will sum up the successful experience and the lessons learned in the LAR activities regarding land acquisition, housing demolition, production restoration of enterprises and income rehabilitation, which will provide referenced experience for future resettlement activities and projects. After resettlement, the external monitoring agency will be engaged by the FCIDC and be responsible for developing the evaluation outline and evaluation index system, conducting the socioeconomic survey, and preparing the post evaluation report on the RP implementation to be submitted to the FPMO and ADB. 73

87 X. RESETTLEMENT BUDGET A. Land Compensation 1. Permanent Land Acquisition Cost 223. Permanent land requisition includes lands of the extension of Zhanqian Avenue, extension of Gandong Avenue, extension of Jinchao Avenue, Waihuan Road, public transportation junction station, and Phase 2 Fenggang River Improvement. As the affected areas belong to Chonggang Town and Zhongling Sub-district respectively, the land compensation standards are same which were executed by the standard of Zhongling Subdistrict according to the agreement of Fouzhou Municipal Government. On the base of Notice on Publicizing Linchuan District Unified Annual Output Values of New Land Acquisition and Integrated Price on Regional Land (General Office of Fuzhou Municipal Government No.17 Decree on April ), total compensation for permanent land acquisition for the Project is CNY million including land compensation, resettlement subsidy, and green crops compensation. This amount refers the land acquisition cost for the project components not including land areas required for resettlement housing needs. The details are shown in Table Cost of Land Compensation for Resettlement Sites for Rural House Relocation 224. According to calculation, the compensation for the two resettlement sites is CNY 9.61 million. The details are shown in Table Cost of Land Compensation for Resettlement Site for Apartments 225. The total land area for constructing the resettlement apartments is 154,889 m 2, but only 44,393 m 2 is required for this project, accounting for 28.66%. Therefore, the cost share of total resettlement site cost should also be 28.66% or CNY0.6 million ( %). The details are shown in Table The total compensation for land is CNY 94.6 million ( ). Table 10.1 Compensation for Land Acquisition Item Unit Quantity Price/mu Cost (million) Paddy Field mu Dry Land mu Vegetable Land mu Mountain Land mu House Site mu Water Surface mu Ditch mu Total Table 10.2 Compensation for Resettlement Site for Rural House Relocation Item Unit Quantity Price/mu Cost (million) Paddy Field mu Dry Land mu

88 Vegetable Land mu Mountain Land mu House Site mu Water Surface mu Ditch mu Total Table 10.3 Compensation for Resettlement Site of Apartments Item Unit Quantity Price/mu Cost (million) Paddy Field mu Dry Land mu Mountain Land mu Water Surface mu Total B. Temporary Occupied Land 227. There is no budget for compensation for temporary occupied land because the project will not occupy any additional land during construction. C. Compensation for Housing and Attached Facilities 228. The compensation for houses and attached facilities includes residential buildings, nonresidential buildings and other attached facilities. The compensation for houses and their attached facilities is CNY million, including houses CNY million and attached facilities CNY 5.27 million according to index of demolished materials and standard of compensation in the project. (Note for affected trees, they will be updated after detailed measurement survey). The details are shown in Table Table 10.4 Compensation for Houses House Structure Unit Quantity Price/m2 Cost (million) Brick-concrete m Brick-wood m Simple m Total Table 10.5 Compensation for Attached Facilities Item Unit Quantity Price Cost (million) Wall m Concrete Floor m Foundations m Grain Storage Room Electricity Meter Set Fruit Tree Set Satellite Dish Piece Biogas Piece Telephone Piece Temple Piece Ancestral Temple Piece

89 Land Temple Piece Well Well Public Well well Gate Piece Tomb Piece Farm Piece Rice Mills Piece Mine Enterprise Piece Mine Workshop Piece Total 0.05 Note: the empirical data (in blue) came from the demolition department was average, the concreted compensation will be consulted with APs. D. Cost for Resettlement Site Preparation 229. For the relocated households, there are two resettlement sites planned including rural house resettlement and apartment resettlement. A total of 569 households and 2450 persons will be relocated for the Project. Considering potential requirements of household splitting due to elder sons, a total of 951 housing units will be required It is preliminarily planned to construct 520 rural houses and 431 apartment units. Since the area of demolition houses is 98,404 m 2 with average 103 m 2 per household, the total housing floor area required for 431 apartment units would be around 44,393 m Cost for Rural House Site Preparation 231. The resettlement site is situated between Guihua Silu and Jinni Avenue with mu of land area, which could provide 520 resettlement house plots. The cost of on-site infrastructure includes cost for site leveling, and connection with water, electricity, and road services. Based on the experience of resettlement over the last few years in Linchuan District, the cost of on-site infrastructure is about CNY150,000 per mu, so the total cost for house site preparation is estimated at CNY million. 2. Cost for Apartment Preparation 232. The resettlement apartments are designed to be high-rise buildings with 11 to 18 floors. Total construction floor area is 183,257 m 2 including residential construction floor area 154,889 m 2, and shop construction area 28,368 m 2. For the rehabilitation of 431 apartment units, including number of housing units to accommodating household splitting, the total floor area is 44,393 m 2 ; so the project will only bear the cost for this quantity According to the market price in Linchuan District, the construction costs (including construction plan, integrated infrastructure construction, construction and installation, etc.) for high-rise buildings are about CNY1350/ m 2. The total construction cost for 44,393 m 2 would be CNY59.93 million. According to of Housing Demolition and Compensation within the Scope of Planning of ADB Loan Project, for the APs who choose replacement apartments will be resettled in a residential community, which is under planning. The APs will pay the price difference of structure according to replacement price if theirs structure of buildings are different from that of replacement apartments. So cost for house demolition with 76

90 CNY million ( ) will be deducted. Therefore, the construction cost for replacement apartments to be paid by FCIDC is CNY million (CNY ). E. Cost for Decoration 234. According to local empirical data of demolition, the cost for housing decoration is CNY 2.87 million with CNY 30/m 2 for existing houses. F. Subsidy for Temporary Housing 235. According to of Housing Demolition and Compensation within the Scope of Planning of ADB Loan Project, if APs choose replacement apartment as compensation, the subsidy standard for temporary housing is calculated by demolished housing area CNY 6/m 2 per month from signature of demolition agreement to achievement of replacement apartment key. The lowest subsidy will not below CNY400 per household every month. In addition, the subsidy has been increased for a period 3 months after moving in. If APs choose rural house site as compensation, the subsidy standard for temporary housing is calculated by demolished housing area CNY 6//m 2 per month from signature of demolition agreement to resettlement housing after completion. The lowest subsidy will not be below CNY400 per household every month too. The transition time is 15 month with cost for transition CNY million ( ). G. Relocation Cost 236. The total investment cost will be CNY 910,400 which is calculated based on 569 households and 2450 persons to be resettled. Every affected household has twice relocation cost with one time CNY800. The splitting household will not have separate moving cost, since their affected houses are the same 569 houses The compensation for productive buildings: According to of Housing Demolition and Compensation within the Scope of Planning of ADB Loan Project, the compensation for productive buildings is CNY16/m 2 based on construction area or calculated by the standard of goods transportation and equipment installation in state regulations, or estimated by the asset appraisal institution. For about 5000m 2 productive building, the compensation is estimated at CNY80, Total of cost for household relocation and productive buildings is CNY990,400. H. Cost for Incentive 239. According to of Housing Demolition and Compensation within the Scope of Planning of ADB Loan Project, in order to encourage affected persons to relocate ahead of schedule, the affected persons can sign the compensation contract and relocate their houses within the demolition limit are eligible to get the relocation encouragement incentive of CNY 3,200 per household that their houses area is above 100 m 2 and CNY 18/m 2 that their house area is not 100 m 2. Total of the cost for incentive is CNY 1,456,640 ( ) based on 80% of 569 households. 77

91 I. Cost for Property Management 240. According to of Housing Demolition and Compensation within the Scope of Planning of ADB Loan Project, if APs choose replacement apartment as compensation, 80% of the annual cost for property management will be paid by FCIDC and 20% will be paid by APs for the first 5 years. The total cost will be paid by APs after 5 years. The total cost for property management paid by FCIDC is CNY1.77 million ( ) based on 80% cost paid by FCIDC at a rate of CNY 10/year/unit for 5 years. J. Vulnerable Group Subsidies 241. The subsidies of vulnerable groups include basic living subsidy and housing rebuilding subsidy. The total of subsidiary for vulnerable group is CNY 0.41 million based on CNY2000 per person, including 104 households with 205 persons. The subsidy is used into supporting affected vulnerable group. K. APs Compensation Costs 242. The total compensation investment cost of the project is CNY million, a sum of the costs detailed in sections 10.1 to Summary details are listed below in Table Table X.6: Cost Estimate for APs Compensation Item Sub-item Cost (CNY10.000) I. Land Compensation Sub-total Permanent Land Temporary Land 0 II. House and Attached Facilities Compensation Sub-total House Attached Facilities III. Resettlement Site Cost Sub-total House Site Replacement Apartment IV. Subsidy for Temporary Housing V. Relocation Cost Sub-total Interim Subsidy Productive Buildings 8 VI. Cost for Decoration VII. Cost for Incentive VIII. Subsidy for Property Management IX. Vulnerable Subsidy 41 Total L. Special Facilities Compensation 243. The special facilities of the project will be rebuilt and constructed by related professional departments. The budget of the rebuilding cost will be calculated by actual affected quantity. According to the survey, the project has impact on power facilities, communications facilities, cable television, broadband, etc. Therefore the compensation for special facilities is CNY11.95 million. The details are shown in Table

92 Table 10.7: Compensation for Special Facilities Item Quantity Price Cost(CNY10,000) 1.Power Facilities 380V V Communications Facilities Cable Television Total M. Other Costs 1) Costs for investigations, planning and designs, are CNY 1,234,300 based on 0.5% of the sum of compensation for APs and special facilities. 2) Management Fees refers to daily expenses for running the resettlement office of the FCIDC, which include costs for staff wages, office expenses and travel expenses. The cost will be calculated at 1% of compensation for APs and special facilities totaling CNY 2,468,600. 3) Training cost including the costs for improving APs production skill with CNY2.4 million, and resettlement staff training and capacity enhancement will be about CNY234,300. The total amount for resettlement training will be CNY2.63 million. 4) M&E cost including the cost for resettlement supervision, monitoring and evaluation are calculated at 0.3% of the sum of compensation for APs and special facilities totaling CNY 740, All the costs mentioned above amount to CNY million N. Land Taxes and Land Administration Fees 245. The relevant taxes and fees for project are detailed below: 1. Land Occupying Taxes 246. According to related files provided by Fuhzou Municipal Land and Resources Bureau, the taxes of land acquisition includes farmland use tax, coordination fee of land acquisition, municipal management fee of land acquisition, and approval fee of land acquisition (in Table 10.8). The approval fee of land acquisition includes management fee, cultivation fee, paid use fee of new farmland, flood protection fund, compensation for soil and water conservation facilities, business fee, and so on. The details are shown in Table Table 10.8 Standard of Fee on Land Acquisition (Fuzhou City) Items Unit Use Tax Coordination Fee Management Fee Approval Fee Price (CNY10000) Paddy Land mu Dry Land mu Vegetable mu Hill Land mu House Site mu Water Surface mu Ditch mu

93 Table 10.9 Classification of Approval Fee Items Management Cultivation Paid Water Soil and Approval Transfer Total Fee Fee Used Fee Protection Fund Water Facilities Fee Fee Paddy Land Dry Land Orchard Hill Land House Site Water Related Taxes of Land Acquisition 247. The taxes of land acquisition in the project includes taxes of the extension of Zhanqian Avenue, extension of Gandong Avenue, extension of Jinchao Avenue, Waihuan Road, public transportation junction station, and Phase 2 Fenggang River Improvement. Total taxes of land acquisition are CNY million. The details are shown in Table The taxes of house sites in resettlement site. There is no approval fee on house site in resettlement site for being collective land after land acquisition. The related taxes of house site is CNY 5.88 million. The details are shown in Table The taxes of replacement apartments. The related taxes of mu is CNY3.42 million. The project will pay for 28.66% of fees on land acquisition of replacement apartments and approval. So the related taxes of replacement apartment in resettlement sites is CNY million ( %). The details are shown in Table Total taxes of land acquisition is CNY million ( ). Table 10.10: Taxes of Land Items Unit Price (CNY10000) Area (mu) Total (CNY10000) Paddy Land mu Dry Land mu Vegetable mu Hill Land mu House Site mu Water Surface mu Ditch mu Total

94 Table 10.11: Taxes of Rural House Site Items Unit Quantity Price (CMY/mu) Cost (CNY10000) Paddy Land mu Dry Land mu Vegetable mu Hill Land mu House Site mu Water Surface mu Ditch mu Total Table 10.12: Fees on Replacement Apartment Site Items Unit Quantity Price (CMY/mu) Cost (CNY10000) Paddy Land mu Dry Land mu Hill Land mu Water Surface mu Ditch mu Total O. Basic Contingency 250. The basic contingency for resettlement budget is estimated at 8% of compensation for APs, special facilities and other resettlement costs, totaling CNY million ( %). P. Total Investment Budget for Resettlement 251. The total investment budget of the LAR is CNY million, which will be listed in total budget of the Project and will be taken charge by FCIDC on behalf of Fuzhou Municipal Government. The details of the total budget are summarized in Table Table 10.13: Total Budget Item Sub-item Cost A. Resettlement Compensation B. Special Facilities Compensation Total (CNY 10,000) Sub-total Land Compensation Housing and Attached Facilities Compensation Resettlement Site Construction Cost Subsidy for Temporary Housing Relocation Cost Decoration Cost Cost for Incentive Cost for Incentive?? Subsidy for Property Management of Replacement Apartment Vulnerable Groups Subsidy 41 Sub-total Power Facilities 1014 Communications Facilities

95 Cable Television 78 C. Other Fees Sub-total Costs for exploration, designs, scientific research Management Fees Training Fees M&E Fees D. Taxes and Fees Sub-total Land Acquisition House Sites 588 Replacement Apartment E. Basic Contingency F. Total Cost (including taxes and fees) 82

96 XI. RESETTLEMENT PLAN IMPLEMENTATION PROCEDURES AND SCHEDULE A. Activities Prior to Resettlement 1. Determine Scope of Land Requisition and Dismantling of Houses 252. According to project design and layout, land requisition areas will be identified and pegged out based on detailed designs. Resettlement will be announced to the affected villages through meetings and notices regarding land acquisition will be displayed in the villages. FCIDC will organize the investigation and registration of the status of land, households, subsidiaries and house properties within the pegged area. 2. Field Check of Land Requisition and Dismantlement Areas 253. With the support of the relevant authorities, FCIDC will organize appropriate staff to visit the affected sites, check and register the land, houses, attachments, utilities, equipment etc, and determine the nature and proprietary rights of infrastructure and also record the information in detail. 3. Draw up the Plan of LAR and Confirm and Compile the Budget 254. According to findings of the investigation, the resettlement design institute jointly with FCIDC will prepare the compilation of the land acquisition and resettlement plan and prepare a budget based on relevant policies and regulations. They will then submit the plan to Fuzhou Municipal LRB, Fuzhou Municipal Real Estate Administrative Bureau and Fuzhou Municipal Finance Bureau for review and verification. 4. Contract Signing 255. Under the coordination and guidance of the FPMO, FCIDC will sign a land requisition contract agreement with the relevant town/subdistrict governments and the demolition contract agreement with the qualified demolition and resettlement agency. Agreements with villages and APs will be signed based on the project compensation standards with respect to the detailed loss items after the detailed measurement survey is completed. The agreements (on land loss, structure loss, trees, etc.) are a formal and reliable documentation for compensation to be paid to villages and APs before land or properties are displaced. B. Activities during Resettlement 256. Fuzhou Municipal LRB will disburse the land compensation fees to the affected villages based on signed compensation agreements; and the affected villages will provide the acquired land to Fuzhou Municipal LRB. The affected villages will then distribute the land compensation among village group members after being agreed by over two thirds of village group members. The compensation will be used to engage in various non-farm activities and increase income for the affected people. The Fuzhou City Demolition Office in cooperation with FCIDC and concerned authorities will provide cash compensation for housing and/or replacement apartment to relocated households based on household compensation agreements. 83

97 1. Land Usage Permission 257. FCIDC will make arrangements of obtaining land usage permission from Fuzhou Land Resources Bureau so as to complete the procedure timely. FCIDC will apply for the land use permission to land administration department level by level. 2. Facilities Displacement and Reconstruction 258. The dismantling of facilities and utilities affected by the project will be closely supervised by FCIDC who will also disburse compensation fees to the responsible agencies and those agencies will arrange displacement, restoration and reconstruction of these facilities and utilities. 3. Resettlement 259. The APs will be resettled by FCIDC in corporation with district and town/subdistrict governments and the concerned villages. Within the project impact areas, communication, medical treatment, culture, education, business, telecommunication, public utilities and residential environment will have improved compared to previous years. 4. Internal and External Monitoring and Evaluation 260. FCIDC will be responsible for carrying out internal monitoring and preparing and submitting a monitoring report to the FPMO every 3 months, who will subsequently forward the report to the ADB. External monitoring will be the responsibility of FCIDC, who will contract this work to an independent consultant and will submit monitoring reports twice a year to ADB during the implementation period and every year for two years after the completion of the resettlement. The external monitoring targets will be focused on the AP s income rehabilitation and maintenance of their livelihood after land acquisition and demolition. In case the targets are not achieved, constraints will be identified and corrective measures will be taken. 5. Public Participation and Consultation in Resettlement Implementation 6. Implementation 261. Implementation. In line with the project implementation schedule, the land acquisition and structures demolition as well as selection and development of resettlement sites shall be completed ahead of the construction activities to ensure the completion of the project implementation. The RP implementation is to be completed before December 2013, which includes most of land acquisition and housing demolition to be completed in The resettlement implementation schedule is shown in Table The project implementation schedule is formulated according to the design of project implementation organization. The land acquisition and structures demolition must be completed ahead of the construction activities to ensure the completion of the project implementation. 1) APs impact survey (DMS) May 2012 (completed) 2) The revised RP completed and submitted to ADB in June ) The external monitoring agency selected in the end of July

98 4) The contracts of land acquisition and housing demolishment will be signed starting from September ) The economic rehabilitation plan for land loss farmers will be started in December 2012, and end in December ) The plan infrastructure restoration will be started in December 2012, and end by the end of December ) The training of cadres and APs will be arranged from July 2012 to December ) The reports of internal M&E and external M&E will be submitted in December and July every year starting from ) The checking and acceptance of the resettlement will be taken in March 2014, and the post resettlement evaluation will be implemented in November The schedule of resettlement implementation is shown in Table Table 11.1: Resettlement Implementation Schedule No. Resettlement Tasks Target Responsible Agency Completion Deadline Status 1. Disclosure 1.1 Resettlement Information Booklet 1,843 copies FCIDC June finished 1.2 Resettlement plan distribution to 10 copies FCIDC July 2012 resettlement offices/villages/aps 1.3 RP placed on ADB website ADB June Detailed Measurement Survey (DMS) May Completed FCIDC Jun on-going 2.1 RP based on DMS and distribution to resettlement offices/villages/aps 1,843 households in 35 village groups 2.2 Detailed plans appended to RP FCIDC Sept 2012 on-going 3. Detailed Rehabilitation Plan FCIDC 3.1 Primary village rehabilitation plan 35 villages FCIDC June On-going (applicable) 3.2 Improving village rehabilitation plan 35 villages FCIDC June 2012 On-going (applicable) 3.3 Land adjustment agreement Sept Yet to start (applicable) 3.4 Assistance of the vulnerable 104 persons FCIDC Oct groups Dec APs skill training plan 1,843 persons Related Township/ July 2012 to Dec 2014 Related Village 4. and Budget 4.1 Complete redline survey (map) PB/LMB/ FCIDC Jun finished 4.2 Approval of RP & budget Fuzhou Municipal Aug 2012 FB 4.3 Approval of compensation rates FMG Aug Stake Holder Survey FCIDC May 2012 Completed 5. Signing Compensation Agreements 5.1 Sign Village agreements 35 villages FCIDC Sept Sign Household agreements 1,843 HHs FCIDC Sept Implementation Capacity 6.1 District resettlement staff 10 staff FCIDC Jun 2012 On-going 6.2 Designate village representatives 35 staff FCIDC /Related July 2012 to Township/ Dec

99 No. Resettlement Tasks Target Responsible Agency Completion Deadline Status Related Village 6.3 Training of staff 30 staff FCIDC July 2012 to Dec Setting up grievance redress 10 staff FDO/ FCIDC Feb. Mar. Completed committees Monitoring and Evaluation 7.1 Baseline survey TBD Monitoring team August 2011 Not yet started 7.2 Set-up internal supervision As per RP FMG/ FCIDC July -Dec Contract external monitor As per RP FMG/ FCIDC July Internal monitoring reports Quarterly Internal Monitor July/Dec. 7.5 External monitoring reports Semi-annual External Monitor Starting Dec Evaluation reports (tracer surveys) Annual External Monitor Dec and Resettlement Completion Report FCIDC Documentation of Consultation As per RP 9. Documentation of Grievances As required Flow of Funds/Compensation 10.1 EA/FCIDC 10.2 PMO-Resettlement Units/ Non- After Sept government resettlement units 10.3 To affected households 1,843 HHs Related Township/ Related Village/ FCIDC 11. Commence Resettlement 11.1 Land acquisition 3,249 mu FDO/LMB/ FCIDC / Related Township/ Related Village 11.2 Housings and buildings removal 569 HHs FDO/LMB/ FCIDC / Related Township/ Related Village 12. Civil Works Schedule 2012 After Oct 2012 to Dec 2013 Oct 2012 Dec Dec 2012 to Dec

100 Appendices Appendix 1 Relevant Clauses of Concerned PRC Laws & Regulations and Decrees A. The relevant regulations in Constitution of the PRC (Adopted on December 4, 1982 and updated in 1999) Article 10: Land in the cities is owned by the state. Land in the rural and suburban areas is owned by collectives except for those portions which belong to the state in accordance with the law; house sites and private plots of cropland and hilly land are also owned by collectives. The state may in the public interest take over land for its use in accordance with the law. No organization or individual may appropriate, buy, sell or lease land, or unlawfully transfer land in other ways. All organizations and individuals who use land must make rational use of the land. B. The relevant regulations in The Law of Land Administration of the PRC (effective as of 1 January 1999 and updated in 2004) Article 10: In lands collectively owned by peasants those have been allocated to villagers for collective ownership according to law shall be operated and managed by village collective economic organizations or villagers committee and those have allocated to two or more peasants collective economic organizations of a village, shall be operated and managed jointly by the collective economic organizations of the village or villagers groups; and those have allocated to township (town) peasant collectives shall be operated and managed by the rural collective economic organizations of the township (town). Article 14: Land collectively owned by peasant shall be contracted out to members of the collective economic organizations for use in crop farming, forestry, animal husbandry and fisheries production under a term of 30 years. The contractees should sign a contract with the correspondents contractor to define each other s rights and obligations. Peasants who have contracted land for operation are obliged to use the land rationally according to the purposes agreed upon in the contracts. The right of operation of land contracted by peasants shall be protected by law. Within the validity term of a contract, the adjustment of land contracted by individual contractors should get the consent from over two-thirds majority vote of the villagers congress or over twothirds of villagers representatives and then be submitted to land administrative departments of the township (town) people s government and county level people s government for approval. Article 31: The State protects the cultivated land and strictly controls the conversion of cultivated land into non-cultivated land. The State fosters the system of compensations to cultivated land to be occupied. In the cases of occupying cultivated land for non-agricultural construction, the units occupying the cultivated land should be responsible for reclaiming the same amount of land in the same quality as that occupied according to the principle of "reclaiming the same amount of land occupied. Whereas units which occupy the cultivated land are not available with conditions of reclaimation of land or the land reclaimed is not up to requirements, the units concerned should pay land reclamation 87

101 fees prescribed by provinces, autonomous regions and municipalities for reclaiming land for cultivation the land reclaimed. Article 46: For requisition of land by the State the local people's governments at and above the county level shall make an announcement and organize the implementation after the approval according to the legal procedures. Owners or users of the land requisitioned should, within the time limit specified in the announcement, go through the compensation registration for requisitioned land with the land administrative departments of the local people's governments on the strength of the land certificate. Article 47: In requisitioning land, compensation should be made according to the original purposes of the land requisitioned.. Compensation fees for land requisitioned include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the requisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land requisitioned by the per capital land occupied of the unit whose land is requisitioned. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the requisition of the cultivated land. But the maximum resettlement fee per hectare of land requisitioned shall not exceed 15 times of the average annual output value of the three years prior to the requisition. The standards for land compensation and resettlement fees for land requisitioned shall be determined by various provinces, autonomous regions and municipalities in reference to the land compensation fees and resettlement fees for cultivated land requisitioned. The standards for compensating for ground attachments and green crops on the land requisitioned shall be determined by various provinces, autonomous regions and municipalities. In requisitioning vegetable fields in suburban areas, the units using the land should pay new vegetable field development and construction fund. Whereas the land compensation fees and resettlement fees paid according to the provisions of the second paragraph of this article are not enough to maintain the original level of living, the resettlement fees may be increased with the approval of the people's governments of provinces, autonomous regions and municipalities. But the combined total of land compensation fees and resettlement fees shall not exceed 30 times the average output value of the three years prior to the requisition. In special circumstances, the State Council may raise the standards for land compensation and resettlement fees for land requisitioned according to the social and economic development level. Article 48: After the plan for land compensation and resettlement fees is finalized, related local people's governments shall make an announcement and hear the opinions of the rural collective economic organizations and peasants whose land has been requisitioned. 88

102 Article 49: Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation fees for land requisitioned and accept their supervision. It is forbidden to embezzle or divert the land compensation fees and other related expenses. Article 50: Local people's governments at all levels shall support rural collective economic organizations and peasants in their efforts toward development and operations or in starting up enterprises. Article 54: A paid leasing should be go through in use of land owned by the State by a construction unit. But the following land may be obtained through government allocation with the approval of the people's governments at and above the county level according to law: 1. Land for use by government organs and for military use; 2. Land for building urban infrastructure and for public welfare undertakings; 3. Land for building energy, communications and water conservancy and other infrastructure projects supported by the State. 4. Other land as provided for by the law and administrative decrees. Article 62: One rural household can own one piece of land for building house, with the area not exceeding the standards provided for by provinces, autonomous regions and municipalities. Construction of rural houses should conform to the general plans for the utilization of land of townships (towns) and the original land occupied by houses and open spaces of villages should be used as much as possible for building houses. C. Jiangxi Province Management Procedures of Land Acquisition Act (2001) Article 3: Land acquisition must meet general plan of land use. The land acquisition within the urban plan area must meet the urban general plan; the land acquisition within the basic farmland preservation area must meet related regulations of basic farmland preservation issued by state council and Jiangxi Province. Various People s Governments should organize land exploitation, consolidation and rehabilitation after farmland acquisition. Article 15: The owner of the affected land should be paid for land compensation fee, resettlement allowance, which is paid according to the regulations: (1) Land acquisition of construction project should be implemented according to the regulations of Article 27 and Article 28 of Procedures of Jiangxi Province on the Implementation of Land Administration Law of the People s Republic of China (hereinafter referred to as the Implementation Procedures), including the land acquisition of large and medium-sized water conservancy project and hydropower project should be implemented according to related regulations of Regulation of Land Acquisition of Large and Medium-sized Water Conservancy Project and Hydropower Project and Resettlement issued by state council. (2) The land acquisition used for transferring land use right should compensate for the legal land owners according to higher than 10% of the standard of Article 27 and Article 28 of Implementation Procedures. 89

103 The land kinds and area calculation in the compensation for land acquisition will be defined and measured by land administration authorities according to related regulations. The AOV of land compensation will be determined at the AAO times the price set by the state authority based on statistic report of municipal, county, and district; and AOV of without statistic report will be checked by land administration authority and related departments. Article 16: The land attached facilities and green crops should be compensated, which the compensation standard should be implemented according to the regulation of Article 29 item 1 of Implementation Procedures. The area of green crops will be determined at actual measurement area. Article 17: The affected house owners must be paid for house demolishment compensation. The house resettlement procedure and compensation standard outside urban plan area will be formulated by county people s government according to the local condition and the compensation procedure and standard of house demolishment determined by state, and will be implemented after county people s government submitting it to municipal people s government; the house resettlement procedure and compensation standard within the urban plan area will be implemented the related regulation of urban house demolishment issued by the state and Jiangxi Province. Article 18: The APs rebuilding land will be transacted as follows: (1) To the APs whose resettlement lands will be arranged in a unified way, their houses must be rebuilt on the resettlement lands. The APs will be not paid for house-site compensation except house-demolishment compensation one-time in the project. (2) To the APs whose resettlement lands will not be arranged in a unified way, they will be compensated for their rebuilding hoses according to related regulations of Implementation Procedure the resettlement land will not be unified arrangement, and will be paid for housedemolishment compensation one-time. But the land acquisition area can not be repeatedly calculated. (3) The standard of APs rebuilding land will be implemented according to the regulation of Article 41 of Implementation Procedure. Article 20: The owner of the affected land should set up special financial accounts to store various land compensation fees in local financial institution. Various fees of land acquisition should be collected by land administration department at the set time from the land users. The land compensation fees that paid to the owner of the affected land should be transferred to the special financial accounts at the prescribed time according to land agreement, which the payment is not made in terms of cash. The land administration should pay for 0.3 penalty by the day due to delay payment. Article 21: The land compensation fees that paid to the owner of the affected land should be used according to the follows: (1) The compensation fees of green crops, attached facilities and house demolishment that belong to the individual or the contractor and operator of the affected land should be paid to them by the owner of the affected land. 90

104 (2) The compensation for land acquisition, the resettlement allowance and the compensation for the green crops and the attachments on the land will mainly be used into land exploitation and farmland infrastructure construction, including by common agreement of villager meeting, the resettlement subsidiary can be allocated to the persons who look for jobs on their own as their job subsidiary, to the persons who cannot be employed as living subsidiary according to dividing agricultural population by resettlement subsidiary; or be transferred to the company which employ the APs according to the number of resettlement persons. (3) To the contract land, the owner of the affected land should compensate appropriately for the contractor s productive input which it fails to be collected. The compensation fee will be paid from land compensation fee. The owner of the affected land must report to village (or township) people s government at first when he uses land compensation and resettlement subsidiary. The implementation condition must be published, and be supervised by the mass. Article 23: The land administrative department above county level should in corporation with relevant authorities has organized the owner of the affected land, land user and other relevant authorities to adopt practicable methods and resettle surplus labor forces because of land acquisition. The land user who has resettlement ability should employ surplus labor forces who meet the employment requirement. To the lands of the owner of the affected land which need to be totally acquisitioned, a certain amount of land will be reserved for farmer agricultural production and house site according to the standard of m 2 per person. The person who has got resettlement land will not get employment resettlement. Article 24: The land used as farmer employment may be constructed by the owner of the affected land with his own self-raised funds, and may also be priced and converted into shares to starting a business. D. The Notice on Implementation Project of Farmhouse Demolition and Resettlement Compensation in New Urban District of Fuzhou City (issued by Fuzhou Municipal Government No. 25 Decree on June ) Article 2: The Location of New Urban District (within the south of Yinbing Avenue, the east of Fuyin Highway, and the west of Fu River): the land and farmer housing (including other buildings) which need to be resettled and compensated are applied to the implementation project because of the need of construction. The farmer housing outside of the location mentioned above can refer to the project. Article 3: The illegal building will not be compensated. In view of historical cause and farmers actual difficulties, the house without property right certificate will be transacted as follows: (1) Cash compensation for the house built before 24 April 2002 will be the replacement price associated with the percentage of the newness after initiative declaration, post-registered procedure, and signing relocation agreement. The house meets the resettlement requirement will be transacted according to the regulation of No. [2007] 22 document issued by Fuzhou Municipal Government. 91

105 (2) Cash compensation the house built during 24 April 2002 to 26 April 2007 (the day when FMG promulgated the No. [2007] 22 document) will be compensated at 40% of the evaluated prices after initiative declaration, post-registered procedure, and signing relocation agreement, but it will not be resettled. No compensations for the illegal buildings that were built after 26 April 2007 will be made. Article 8: In order to encourage affected persons to relocate ahead of schedule, the affected persons can sign the compensation contract and relocate their houses within the demolition limit are eligible to get the relocation encouragement incentive of CNY 3,200 per household that their houses area is above 100 m 2 and CNY 18/m 2 that their house area is not 100 m 2. Article 9: The affected person should relocate within the time limit of relocation. To the person who refuses to relocate, his house will be demolished according to related laws and regulations. Article 10: The demolishment household can chose any one of resettlement between one-time cash compensation and resettlement at the local designated sites according to his actual condition. Article 11: One-time Cash Compensation: (1) The demolished housing is compensated for by the price of new estates. (2) The house site of the settled household is compensated for CNY 80,000 per household, and the separated household is compensated for CNY 74,000 per household. (3) Implementing Agency pays the resettlement interim subsidy for APs as is calculated by the areas of APs original building with CNY6/m2 and will not below CNY400 per month. Moving cost is set twice with CNY 800 per household one time. Article 12: Resettlement at the Local Designated Sites: (1) According to unified planning of Fuzhou Planning Bureau, the construction lands of local designated village are Xiaoyudingjia and Bailing (within the south of Fuba Line) in Zhongling Sub-district, and Fanjia in Chonggang Township. The APs of the project will be resettled by the principle of local resettlement. (2) To the household who chooses local resettlement site, their demolished housing and other buildings will be compensated for the price of new estates, and will be resettled at local resettlement village. (3) The sub-district of resettlement sites will in charge of land acquisition and three supplies and one levelling including supply of water, electricity and road and levelled ground (conditions ready for further economic development). The sub-district should unify land acquisition, construction standard and construction mode; control every household land within 100 m 2 ; check and issue the certificate of collective land use according to the principle of one household one house site. (4) To the distribution of resettlement apartment, the settled household chooses the resettlement apartment by time order of signed contract and demolished housing, and the resettlement apartment of separated household is determined by unified draw lots within the scheduled time. 92

106 (5) It will be only one house site resettled to the APs who have two or more than two housings, and it will not districted other land to them. The APs who meet the conditions of family splitting will be treated by the separated household regulation. (6) The area of demolished housing surpass the regulated resettlement area can be resettled a house site by the regulation. (7) The area of demolished housing falls short of the regulated resettlement area will be resettled a regulated house site but will pay CNY 60/m 2 for the surpassed area. (8) The APs who have been resettled as off-farm employee before removing but live in affected village and have housing area above 80 m 2 (including 80 m 2 ) will be resettled a house site, while the separated household resettlement is not allowed. The APs have housing area below 80 m 2 will not be resettled a house site. The urban resident who has been resettled as off-farm employee will be treated as the same of present villager. (9) The demolished housing that belong to mixed multi-household property right and meet the condition of farmer housing land due to the need of separated resettlement in project will be granted approval of the separated household resettlement. (10) To the APs aged 18 or above will be resettled by the separated household with a house site, at the same time they should pay the resettlement cost of CNY 10,000 28,000. Namely, the APs who meet legally marriageable age do not need to pay for resettlement cost; the APs aged 21 will pay CNY 10,000 for resettlement cost; the APs aged 20 will pay CNY 16,000 for resettlement cost; the APs aged 19 will pay CNY 22,000 for resettlement cost; while the APs aged 18 will pay CNY 28,000 for resettlement cost. The other conditions will not be allowed by the separated household resettlement. (11) Widows and widowers over the age of 60 will not be granted approval of the separated household resettlement in principle. Every household will be compensated for CNY 10,000 and also be distributed a housing site after payment of the CNY 10,000 for resettlement cost. (12) The demolished household that meets the condition of the separated household resettlement should pay CNY 6,000 land cost for three supplies and one levelling including supply of water, electricity and road and levelled ground (conditions ready for further economic development). (13) Resettlement sites will be constructed as a new market town according to certain standards. Fuzhou Planning Department will formulate a unified plan and the demolished households will self-construct their housing according to the plan. To the villagers who construct their resettlement housing according to the housing design of Fuzhou Planning Department will be given reward of CNY 40/m 2 according to theirs housing area after their resettlement housing up to the standard. The villagers who will not contract their resettlement housing according to the housing design will not be given reward. (14) To the affected person who meets the resettlement conditions, Fuzhou Planning Department, Fuzhou State Land and Resources Bureau, and Fuzhou Housing Management Department should fulfilling relevant formalities for them. The departments should only receive card issuing fee with no additional fees. 93

107 (15) Every affected household should pay CNY 4,000 for the construction of main road in resettlement area. The cost should be supervised and used by the representatives of villager and sub-district. (16) The house site of resettlement should not allow to be assigned. Illegal assignment will not grant to transact procedure of land and housing construction, and will be investigated for legal responsibility. (17) Implementing Agency pays the resettlement interim subsidiary for APs as 8 months with CNY 30/month, and pays CNY 400 per household for twice relocations. Annex 1: Replacement Cost of Rural House Demolishment in New District Annex 2: Compensation Standard of Attachments on Land Annex 1: Replacement Cost of Rural House Demolishment in New District Structure Steelcement Brickcement Brick-wood Simple Grade The first class The second class The first class The second class reinforced concrete framework, beam, column bearing, reinforced concrete casting, roof, stone floor or cement floor, formal door and window, middle-high level exterior and interior painting, exterior and interior brick wall, private kitchen, water, electricity and sanitary fittings exterior and interior brick wall, partial reinforced concrete beam, column bearing, reinforced concrete casting, roof, cement floor, formal door and window, middle level painting, private kitchen, water, electricity and sanitary fittings exterior and interior brick wall (partial hollow bond wall), partial reinforced concrete beam, column bearing, reinforced concrete framework, cement floor, formal doors and windows, middle level painting, non unit residence,water, electricity and sanitary fittings wood bridge, column or brick bearing, tile roof with backing board, cement floor or wood floor, formal door and window, middle level painting, water, electricity and sanitary fittings wood bridge, column or stone wall bearing (including partial hollow bond wall), tile roof, cement floor or brick-wood floor, simple door and window, ordinary painting, water, electricity and sanitary fittings Informal wood bride, wood strip, mess brick, wood board or earth wall, tile or asphaltic felt roof, simple door and window, cement floor or earth floor Replace Price Service (CNY/m 2 ) (year)

108 Annex 2: Compensation Standard of Attachments on Land The compensation standard of attachments on land includes draw-wells at CNY 100/well, pressure wells at CNY 50/well, fence walls (above 1.5 m) at CNY 10/m, cement sunning ground at CNY 10/m 2, house foundations at CNY 20/m, fruit tree (above 1.5 m) CNY 30/tree. E. The Notice on Publicizing Linchuan District Unified Annual Output Values of New Land Acquisition and Integrated Price on Regional Land (General Office of Fuzhou Municipal Government No.17 Decree on Apr , effective on 1 March, 2011) New standard of compensation for land acquisition is made up of land compensation and green crops compensation, excluding ground appendixes compensation fee and social security fee. (Note: For the Project, regardless their locations, the compensation for Zhongling District will be applied.) Compensation Standards for Land Areas in Linchuan District 2011 Wenchang Sub-district, Chengxi Sub-district, Zhongling Subdistrict, Shangdundu Twonship, Xiaoqiao Township New Standard of Land Acquisition (Land Compensation, Resettlement Subsidiary) (CNY/mu) Paddy Field, Cotton Field ,000 Intensive Cultivated Pound ,500 Pond ,000 Merchandise Vegetable Land ,500 Vegetable Land ,000 Dry Land High-yielding Orchard (the trees above 5 years old) ,000 above 40 trees/mu Orchard (the trees below 4 years old) ,500 Artificial High-yielding Camellia Oil Garden ,000 Camellia Oil Garden (the trees below 4 years old) ,500 Forest and Other Farm Land House Site Unused Land Standard of Green Crops (CNY/mu) Compensation Standards for Land Areas in Linchuan District 2011 Chonggang Township, Hunan Village, Luohu Township, ChangKai Townsip, Yushan Township, Luozhen Township New Standard of Land Acquisition (Land Compensation, Resettlement Subsidiary) (CNY/mu) Paddy Field, Cotton Field ,000 Intensive Cultivated Pound ,500 Pound ,000 Standard of Green Crops (CNY/mu) 95

109 Merchandise Vegetable Land ,500 Vegetable Land ,000 Dry Land High-yielding Orchard (the trees above 5 years old) ,000 above 40 trees/mu Orchard (the trees below 4 years old) ,500 Artificial High-yielding Camellia Oil Garden ,000 Camellia Oil Garden (the trees below 4 years old) ,500 Forest and Other Farm Land House Site Unused Land

110 Appendix 2 Resettlement Information Booklet The aim of Fuzhou urban infrastructure improvement project is to support the Fuzhou railway passenger station of Xianpu Railway. The project includes the Fuzhou urban road construction project, multi-combined transportation terminal construction, a rapid public transportation system (Phase I construction of BRT), and Phase II rehabilitation project of Fenggang River. The resettlement area of the project belongs to Jinchao Economic Development District (county level unit). The specific scope of the project is Chonggang Township and Zhongling Sub-district in Jinchao Economic Development Disrtrict. The works construction will affect the location of your family (unit) to some extent. This booklet is distributed to inform the Affected Persons (APs) on the basic status of the sub-component of the Project, relevant land acquisition and relocation policies of the state and the impacts on the APs household as well as their rights and entitlements. 1. The Scope and Quantity of the Works Impact The land acquisition areas to be occupied in the redline map of Fuzhou Investment Development Co., Ltd., have been identified based on detailed designs. In accordance with survey, the land acquisition includes mu in Zhujia village, mu in Xianxi village, mu in Fenggang village, mu in Fengling village, mu in Shangzhang village, and mu in Bailing village. There are m 2 of houses will be demolished and 569 households with 2450 persons will be relocated. The project will affect two towns and six villages and will permanently occupy mu of land including mu of cultivated land (including paddy land, dry land and vegetable land), of mu pond, mu of hill land, mu of house site and mu of ditch. All of this land is collectively owned. The permanent acquisition of farmland will affect four villages in Chonggang Township and two villages in Zhongling Sub-district. Details are presented in Table 1-1. Table 1-1: Summary of Permanent Land Occupancy Owne r- ship Colect ive Tow nshi p Cho ngg ang Village Paddy Land Dry Land Land Acquisition(mu) Vegetabl e Hill Land Pond Ditch Zhujia Hous e Site Subtotal HH APs Perso n Xianxi Fenggang Fengling Zho Shangzhan ngli g ng Bailing Total Percent (%) %

111 Residential housings and attached facilities affected by the project. The housings will be demolished are in 3 administrative villages of Chonggang town, and all of these housings are residential buildings. Total of 98404/35 m 2 of houses will be removed, including brick-concrete structure of m 2, brick-wood structure of m 2, and simple structure of 4974 m 2. Details of the affected residential housings and attached facilities are shown in Table 1-2. Village Table 1-2: Scope of Demolition of Houses and Attached Facilities Village Group Household (HH) Population (person) Type Brick-cement Brick-wood Simple Total Huangjia Group1, Zhouraojia Group Guojialing Group Zhujia Zhujia Group Gaoqiao Group Xiazhang Group Gongjia Group Aijia Group Xianxi Zhoujia Group Fengjia Group Fengling Shangxiaxiaojia Total According to surveys undertaken, a total of 1843 households and 7461 persons would be affected by collective land acquisition and residential housing demolition in 35 village groups (6 villages). They are all registered permanent residents in the affected area. Of these APs, 1843 households with 7461 persons will be affected by permanent land acquisition, while 569 households with 2450 persons are to be affected by the residential housing demolition and required to be resettled. 2. Resettlement Compensation The compensation rates of land acquisition and resettlement are determined on the basis of surveys, with reference to involuntary resettlement principle of the Asian Development Bank, state laws and regulations and Jiangxi Province, Fuzhou Municipality and Linchuan District bylaws and aimed to restore and improve living standards of APs in a short period after the resettlement. The cut-off date for deciding compensation payment is 25 th May (1) Land Compensation The main resettlement measure is cash compensation. At the same time, the affected persons survival and living after they have lost their land are compensated by adjustment in village. Because the project belongs to Chonggang Township and Zhongling Sub-district respectively, the compensation standards of the two lands are same, and executed according to the compensation standard of Zhongling by FMG aggrement. According to the Notice on Publicizing Linchuan District Unified Annual Output Values of New Land Acquisition and Integrated Price on Regional Land (General Office of Fuzhou Municipal Government No.17 Decree on Apr , effective on 1 March, 2011), the details of compensations are listed in Table

112 Table 2-1: Zhongling Sub-district Compensation Standard Compensation of Land Acquisition (Land Compensation, Resettlement Subsidy) (CNY/mu) Zhongling Sub-district Paddy Field, Cotton Field ,000 Intensive Cultivated Pound ,500 Pond ,000 Merchandise Vegetable Land ,500 Vegetable Land ,000 Dry Land High-yielding Orchard (the trees above 5 years old) ,000 above 40 trees/mu Orchard (the trees below 4 years old) ,500 Artificial High-yielding Camellia Oil Garden ,000 Camellia Oil Garden (the trees below 4 years old) ,500 Forest and Other Farm Land House Site Unused Land 6883 Standard of Green Crops (CNY/mu) (2) Compensation for Housing and Attached Facilities According to the of Housing Demolition and Compensation within the Scope of Planning of ADB Loan Project, the compensation for farmer housing are listed in Tables 2-2, 2-3, and 2-4. Table 2-2: Replacement Cost of Rural House Demolishment in New District Structure Fram Brick-cement Brick-wood Civil Simple reinforced concrete framework, beam, column bearing, reinforced concrete casting, roof, stone floor or cement floor, formal door and window, middle-high level exterior and interior painting, exterior and interior brick wall, private kitchen, water, electricity and sanitary fittings exterior and interior brick wall, partial reinforced concrete beam, column bearing, reinforced concrete casting, roof, cement floor, formal door and window, middle level painting, private kitchen, water, electricity and sanitary fittings wood bridge, column or brick bearing, tile roof with backing board, cement floor or wood floor, formal door and window, middle level painting, water, electricity and sanitary fittings wood bridge, column or stone wall bearing (including partial hollow bond wall), tile roof, cement floor or brick-wood floor, simple door and window, ordinary painting, water, electricity and sanitary fittings Informal wood bride, wood strip, mess brick, wood board or earth wall, tile or asphaltic felt roof, simple door and window, cement floor or earth floor Replace Price Service (CNY/m 2 ) (year)

113 Table 2-3: Compensation Standards of Attached Buildings on Land Attached Buildings on Land Draw-well CNY 100/well Pressure well CNY 50/well Fence Wall (above 1.5 m) CNY 10/m Cement Bleachery CNY 10/m 2 House Foundation CNY 20/m Fruit Tree (above 1.5 m) CNY 30/tree In order to encourage APs to relocate ahead of schedule, they can sign the compensation contract and relocate their houses within the demolition limit and be eligible to get a relocation encouragement incentive of CNY 3,200 per household if their housing area is greater than 100 m 2 and CNY 18/m 2 that the area of their house is less than 100 m 2. (3) Relocation Compensation and Resettlement Interim Subsidy The resettlement interim subsidy is calculated by the areas of APs original building with CNY6/m2 and will not below CNY400 per month. Moving cost is set twice with CNY 800 per household one time. (4) The APs Resettlement Farmers whose land is acquired will receive employment assistance supported by the government to help their search for jobs on their own or to become self-employed. This will include job information, job training, a small secured loan, social security allowance, post allowance and tax and fees exemption. According to a new decree jointly issued by Fuzhou Human Resources and Social Security Bureau, Fuzhou Finance Bureau and Fuzhou Land and Resources Bureau on the Operations of Fuzhou Land Loss Farmers Joining Urban Pension Program (Fuzhou Municipal Government [2011] 19, 2011), the land loss farmers aged above 16 years old and those whose total land is acquired or whose per capita cultivated land is lower than or equal to 0.3 mu therefore not sufficient to maintain livelihood after land acquisition are all qualified to enroll in an urban pension program. The urban resident pension program is based on the mode of social pooling combined with an individual account. The cost of social security is born by the government, the collective and by the individual. Based on total premiums of 15 years, the government will provide 60% of the total funds, and the rest will be shared by individuals. The village collective may give part of the subsidy to individual s appropriately in areas where the collective economy is better developed. Based on such a decree, for those above the retirement age (males over 60 years old and females over 55 years old), after paying 40% of all the 15 years of premiums or CNY 15,436, they could start receiving an urban pension of CNY 486 per person per month, or CNY 5,832 per year. For those men aged over 60 years old and women aged over 55 years old, who have lost land and do not have the ability to pay for their premiums, they could be provided with an old-age living subsidy of CNY 160 per month after applying for the subsidy. The subsidy standard will be increased by the municipal government according to economic development and future living level improvements. The local finance department of the government will pay the living subsidy to the social insurance agency each month according to actual condition. The social insurance 100

114 agency will then in turn pay the applicants every month. The procedure provides basic social security for APs and also helps address one of the key areas of concern for the APs. 101

115 3. Estimated Time of the Implementation Table 3-1: Proposed Schedule of Key Activities Item Time Remark Consultation of land acquisition and relocation June 2012-August 2012 Promulgate bulletin of land acquisition and relocation July 2012 Compensation payment Dec 2012 Dec 2013 Land acquisition and relocation December Rights and Obligations of the APs (1) Rights of affected objects The affected people will be provided with all kinds of compensation in accordance with the above compensation rates indicated in the RP. They could reflect opinion and suggestions to land acquisition and relocation offices or project resettlement offices of village committees, township, district progressively. Such opinions and suggestions could include base number of compensation quantity, compensation rate, time of compensation payment, house relocation, etc. Different resettlement officials must reply to complaints of APs and problems subordinate resettlement office reflects within 7 days. (2) Obligation of affected persons Actively cooperate with the implementation of state project. New buildings shall not be constructed within the scope of the resettlement survey; otherwise the compensation fund will be cancelled. Demolish buildings within the red-line/blue-line scope of project planning. 5. Assistance for the Vulnerable Groups Vulnerable groups are defined as poor families, disabled people, the elderly, and rural households in which the woman heads the household. In the project, there are 104 poor households affecting 205 persons, which accounts for 3.65% of the total APs. Among the APs, 11 households of 17 persons in Zhujia village and six households of 10 persons in Xianxi village will be affected by land acquisition and housing demolition. During the course of resettlement implementation, the project proponent will give prior support and help in training, job seeking, and social security to rehabilitate and improve the lives of these vulnerable persons, including provision of CNY2000 additional financial assistance for each affected vulnerable person, and concrete support for relocated households. 6. Grievance Procedure Any APs can put forward grievance to the problems of land compensation and resettlement. The grievance procedures are listed as follows: Stage 1: If APs have any dissatisfaction with RP or implementation, they may report to the villager or resident committees. The villager and resident committees or the APs may directly appeal to the resettlement offices for negotiated resolution or put forward oral or written grievance. The resettlement office will record the complaints and resolve the problems within two weeks after the receipt of the complaints if the grievance has been communication orally. 102

116 Stage 2: If the APs who lodge a complaint are not satisfied with the results of Stage 1, they may lodge grievance to FPMO after receiving the decision. The latter will make a resolution within two weeks. Stage 3: If a complainant is still not satisfied with the decision given in Stage 2, after receiving the decision they may take their complaint to the Jiangxi project office for arbitration. The latter will make an arbitration decision within three weeks. Stage 4: If a complainant is still dissatisfied with the decision given to them in Stage 3, they may appeal to administrative setups including the project office, resettlement management office, resettlement monitoring institution, authorities of letters and calls, administrative supervision, and disciplinary inspection according to Administrative Procedure law. As a final resort, the complainant can go to court to file their appeal. The entire process of grievance and appeals for AP should be dealt with free of charge. In addition, in the case of violation of ADB s safeguard policy, APs may directly appeal to ADB in accordance with ADB s Accountability Mechanism (2003). The complaints and appeal procedures will be conveyed to APs through public meetings and other information dissemination procedures, ensuring that they fully understand their rights and the mechanisms for complaint and appeal. Any complaints raised by APs and resolutions must be registered in written form by the resettlement. 7.Implementation Organizations of Land Acquisition and Resettlement Zhongling PMO, Jinchao Economic Development District, Fuzhou Address: Telephone: Chonggang PMO, Jinchao Economic Development District, Fuzhou Address: Telephone: 8.Right of Interpretation of the Booklet The right of interpretation of the booklet belongs to Investment Development Co. Ltd. and Fuzhou PMO. 103

117 Appendix 3 Terms of Reference for External Monitoring and Evaluation 1. Objectives According to ADB s Resettlement Handbook and ADB s Social Analysis Guideline, independent monitoring and assessment of the resettlement plan implementation will be undertaken to analyze and compare the change of living level of AP via checking and tracking the progress and fund and management relative with resettlement. The report that is provided to ADB, the EA and concerned departments will provide sufficient information and suggestions for reference to the concerned departments to keep them informed of the progress and status of resettlement so as to assure them identify the problems and propose suggestions on the improvement. The EM agency will also objectively assess and verify the implementation of the resettlement plans and strategies as outlined in this document. 2. Tasks for Monitoring and Evaluation Progress of land acquisition and demolition includes: Progress of land acquisition; Affected progress of the project. Progress of housing demolition and resettlement includes: Progress of housing demolition and status of compensation; Progress of house construction for APs; Progress of removal. Progress of funds availability and payment includes: Payment of fund allocation; Expenditure (budget and factual expenditure). Monitoring and assessment on living level of AP includes: Living level of AP prior resettlement; Living level of AP after resettlement;employment of AP prior and after resettlement. Monitoring and assessment of the progress of disbursement of compensation for LAR and house demolition; Monitor the progress of selection and preparation of resettlement sites including the provisions of civic amenities Monitoring institutional capacity of the resettlement office particularly monitoring the budgetary arrangements and cash flow for resettlement activities. Monitoring the process of public participation and consultation and ensuring that the public participation and consultation schedule is being followed and outcomes are being incorporated in resettlement implementation process. Monitoring the functioning of Grievance Redress Mechanism Monitoring of livelihood rehabilitation plans Monitoring of the provisions for the vulnerable groups Monitoring and verifying internal monitoring reports Assist in Resettlement Completion Report. 104

118 Generally, the external monitoring and evaluation institution will carry out the following work: (1)Baseline and follow-up surveys of APs living standards A baseline survey will be conducted for this Project, including the collection of selected samples of the baseline living standards of the APs prior to commencement of land acquisition or house demolition. The preliminary samples will be randomly collected but will cover all 25 affected villages. The living standards will be investigated once a year after resettlement is completed to monitor the variation in the resettlers living standards. The necessary data can be obtained by periodic surveys, random interviews and site visits, based on which statistical analysis and evaluation are performed. There will also be targeted surveys of vulnerable groups. Between 40% to 60% of the people surveyed will be women and about 25~30% will be the old account for of the total APs according to the survey results The survey will comprise various indicators of living standards. Some of the indicators will be used for weighing the dynamic variation of living standards before and after the land requisition and resettlement. The selected indicators will be checked to see whether they are reasonable in reflecting the actual production and living levels in the baseline survey and are subject to modification according to the actual conditions, so as to guarantee the findings obtained reflects the quality and quantity of the real situation. Sampling scale: APs 10% of relocated households and 20% of households that lose more than 20% of their farmland (over 25% of the sampled households are targeted at vulnerable groups); at least 30% of affected villages will be covered, but the focus will be on all the seriously affected villages. (2)Holding Public Consultation The independent monitor will participate in the public consultation conferences held by the villages and subdistricts. By this method, the monitor can evaluate the effectiveness of public participation and the cooperative attitude of the APs towards the RP implementation. Such activities will be conducted during and after the resettlement implementation. (3) Gathering APs Opinions The independent monitor will interview the subdistrict resettlement working groups and villagers to record the opinions collected from the APs and interview the APs who have grievances. The monitor will report the opinions and suggestions from affected individuals and collectives to the PRO, and provide advice for improvement, so that the resettlement implementation can be more smooth and effective. 5. Monitoring and Evaluation Methods A combined method of field survey, analysis and comprehensive assessment will be used for monitoring and evaluation of the resettlement process. This would include an overall survey and site specific survey of progress, funds, institution and management and also a random sample survey, sampling according to classification. The sample would include 20% of housedemolished households and 10% of households who have lost land. Overall survey including table investigation, meetings, and file review and a collection of photos, tape records, video records, physical substance except for written documents. 105

119 The independent evaluator should prepare and submit the external M&E reports to FPMO and ADB every six months the during the RP implementation period. The external M&E activities will be continued once every year after the completion of the resettlement until the construction works completed or the APs livelihood fully rehabilitated whichever the latter, submitting the report to FPMO once every year. 6. Schedule of Monitoring and Assessment July 2012 Aug 2012 Select an external monitoring agency and prepare the working program. Prepare monitoring such as an outline of the survey, tables, establishment of the monitoring system, defining assignment and selection of monitoring samples. Sept 2012 Baseline survey and conduction of first monitoring survey, submit No. 1 monitoring report. The baseline survey will include 20% relocated households, 10% land loss APs, including 20% who lose more than 20% of land holding, and adequate representation of women and vulnerable households. Feb Aug 2013 Feb 2014 Dec 2014 Second survey, submit No. 2 monitoring report. Third survey, submit No. 3 monitoring report. Fourth survey, submit No. 4 monitoring report and 1 st evaluation report. Fifth survey, submit 2 nd evaluation report 106

120 Appendix 4 Rehabilitation Plan For Selected Village Groups The following are details of RP implementation for two affected groups in Guojialing and Fengjia villages. Rehabilitation Plans of Guojialing and Fengjia (1) General Information Village Guojialing Fengjia Village Group Zhujia Group3 Xianxi Group 15 Table 5.3 Summary of Affected Village Groups Type Household (HH) Population (person) Male Female Above 60 year old Labor force Annual percapita income (CNY/year) LA&HD LA&HD The survey showed the total population of Guojialing was 380 persons with 206 men and 174 women, including 46 middle-aged and elderly persons, 206 labor forces, and 2 poor households with 7 persons; the total population of Aijia was 135 persons with 77 men and 58 women, including 18 middle-aged and elderly persons, 71 labor forces and only 1 poor household with 3 persons. Table 5.4 Summary of House Demolition Village Group Household (HH) Population (person) Brick-cement (m 2 ) Brick-wood (m 2 ) Simple (m 2 ) Total (m 2 ) Guojialing Group Fengjia Group The APs house structures will be compensated by new standard of replacement price. According to calculation, the compensation for Guojialing is CNY 8.33 million, and compensation for Fengling is CNY1.95 million. The vulnerable households will get preferential treatment, including compensation for 3 households with 10 person CNY 20,000, free labor forces and other related help in the relocation. As for the resettlement, APs will be given properly arrangement according to the standard and resettlement way chosen by them. (3) Livelihood Rehabilitation Plan Village HH Population (person) Table 5.5 Land Acquisition of Affected Village Total Farmland (mu) Per Capita Farmland (mu) Acquired Farmland (mu) Per Capita Remaining Farmland (mu) Farm land Loss (%) Land Compensation per HH (CNY) Guojialing Group 3 Fengjia Group 15 Note: there are four households who no longer reside in Fengjia. Their houses are left vacant. 1) Land Adjustment Per Capita Compensation (CNY) 107

121 In Guojialing, the lands will be adjusted after land acquisition because per capita farmland before and after land acquisition will be 0.68 mu and 0.49 mu respectively. There will be very little of remained of land after land acquisition in Fengjia, so the lands will not be adjusted. 2) Paying sufficient land compensation and guiding APs reasonable use of compensation. For the distribution of compensation according to the number of people, the APs of Guojialing will get land compensation CNY 9700 per person with CNY per household; the APs of Fengjia will get land compensation CNY 37,810 per person with CNY 94,500 per household. Because the special region position and a certain initial capital, part of villagers will be encouraged to engage in private business which has stable income and low risk, such as leasing a shop to engage in the business of restaurant, fruit, grocery, etc. 3) Providing Endowment Insurance The per capita land is lower than 0.3 mu after land acquisition in Fengjia, the resettlement department of project and related government department will provide endowment insurance for APs. 4) Employment Considering APs desire and the features of Jinchao Economic Development District, the APs will get job training. According to the absorbing capacity, the District can solve APs job of two villages if the APs are quite willing to work. 5) New Income Sources of Houses Renting and Shop Management Because the demolished area will become fully integrated into the urban development, the relocation site resettlement or apartment resettlement will provide a big residential space for APs. Every household has big room for renting and it can increase APs income. 6) Women Employment Part of women can engage in plantation, textile, shoes, clothes and other jobs in Jinchao Economic and Development Zone. According to the survey, about 50% of women were already employed in the Zone, which can solve women employment problem. 108