PRC: Hefei Urban Environment Improvement Projectindr.org/wp-content/uploads/2013/09/387-Hefei... · The Hefei Xincheng State Assets Operating Company Ltd., the implementation agency

Resettlement Planning Document

The 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.

Resettlement Plan – Xinzhan Road Infrastructure and Traffic Management Improvement Component

Document Stage: Final Project Number: 36595 December 2006

PRC: Hefei Urban Environment Improvement Project

Prepared by Administrative Committee of Hefei Xinzhan Pilot Zone for Comprehensive Development

Hefei Urban Environment Improvement Project

Improved Road Infrastructure and Traffic Management in the Xinzhan Zone

Resettlement Plan

Administrative Committee of Hefei Xinzhan Pilot Zone for Comprehensive Development

Hefei · China

30 November 2006

i

ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN

The Hefei Xincheng State Assets Operating Company Ltd., the implementation agency (IA), together with the assistance of the Hefei Design Institute of Coal Industry has prepared this Resettlement Plan (RP) for the Improved Road Infrastructure and Traffic Management in the Xinzhan Zone Sub-component as part of the Hefei Urban Environment Improvement Project, which is under application for a loan from the Asian Development Bank (ADB). The RP fully complies with requirements of the relevant laws, regulations and policies of People’s Republic of China, Anhui Province and Hefei Municipal Government as well as complies with ADB’s policy on involuntary resettlement. This resettlement plan is based on the feasibility study report and socio-economic survey and Hefei Project Management Office hereby confirms the content of this RP and will guarantee the land acquisition and compensation budget being provided according to the provisions of aforesaid plan. This RP will be future modified and approved by ADB before its implementation when the detailed design is finished. WANG Linjian, Vice Mayor, Hefei City LI Wuhao, Director of Hefei Project Management Office：

November 2006

ii

LIST OF ACRONYMS AND MEASURES

AAOV Average Annual Output Value ADB Asian Development Bank AP Affected Person CNY Chinese Yuan CRC Community Residents Committee dia. Diameter DI Design Institute DMS Detailed Measurement Survey DRO Demolition and Resettlement Administration Office EA Executing Agency EIA Environmental Impact Assessment FB Finance Bureau GDP Gross Domestic Product FFM Fact Finding Mission FSR Feasibility Study Report Ha Hectare HMCC Hefei Municipal Construction Commission HMG Hefei Municipal Government HSB Hefei Statistical Bureau

HSMCLR Hefei Supervision and Management Committee for Land Acquisition and Resettlement

HXSAOC Hefei Xincheng State Assets Operating Company Ltd IA Implementing Agency LAB Land Administration Bureau LSSL Least Subsistence Security Line M&E Monitoring and Evaluation MRM Managerial Review Meeting NGO Non Governmental Organisations PMO Project Management Office PPTA Project Preparatory Technical Assistance PRC Peoples Republic of China RIB Resettlement Information Booklet RO Resettlement Office ROW Right of Way RP Resettlement Plan ToR Terms of Reference US$ United States Dollar WF Women’s Federation XCB Xinzhan Construction Bureau km2 square kilometre Mm Millimetres m3/d Cubic Meters per day % Percentage ≤ Less than or equal to ≥ Greater than or equal to # Number mu Chinese area measure for land, 1mu = 1/15 ha (1 ha = 15 mu) CNY Chinese currency Yuan, 1 Yuan = 1/7.9 $US ( $US1=CNY 7.9)

iii

EXECUTIVE SUMMARY

1. Outline of the project and its impact

In order to reduce traffic congestion and improve road safety, Hefei Municipal Government (HMG) the Executing Agency (EA) together with Administrative Committee of Hefei Xinzhan Pilot Zone for Comprehensive Development is the institution to execute the Project (Sub-Executing Agency, or Sub-EA) intends to utilize part of the Asia Development Bank (ADB) loan under the Hefei Urban Environment Improvement Project (HUEIP) to launch a sustainable traffic management development project in the Xinzhan Zone in north east Hefei – Sub component 3.1. This Project is to be implemented by Hefei Xincheng State Assets Operating Company (HXSAOC) as the implementing agency (IA) with the Xinzhan Construction Bureau (XCB) as the implementing unit. This component involves the construction of 26.4km of urban roads together with ancillary works including storm water drainage and the completion and testing of a pilot innovative traffic management system, which if successful would be replicated in other parts of the City or elsewhere..

The permanent requisition of land for this component will directly affect 3 Community Residential Committees (CRC); the project will permanently requisition 2,136.77mu of land, (142 hectares) and involve the demolishment of 66,496 m2 of buildings. Land acquisition and house demolition will affect a total of 976 households and 2,837 people. The impacts from land acquisition were minimized by close consultation with local officials and the CRCs at the feasibility study report (FSR) stage, and alternative schemes involving different road routings have been compared and the optimal scheme selected. The present Resettlement Plan (RP) is prepared in accordance with all necessary PRC state legislation Provincial and Municipal related policies related to land and also with ADB’s Policy on Involuntary Resettlement. The RP has been based on the FSR and will need to be updated based on the detailed design.

2. Policy framework and entitlement Based on PRC land legislation and policy, the resettlement principles established for the component are: (i) compensation and entitlements provided to the affected persons (APs) are adequate to at least maintain their “without project” standard of living, and with prospect of improvement; (ii) All APs, titled or non-titled, will be provided with resettlement assistance and granted fair compensation; (iii) where post- requisition cultivated land per capita is not sufficient to maintain livelihood, compensation in cash or kind for replacement land for other income-generating activities with be provided for the APs; (iv) all the APs will be adequately informed on eligibility, compensation rates and standards, livelihood and income restoration plans, project timing, and will be involved in the RP implementation process; (v) no land requisition will take place unless replacement land or sufficient compensation for resettlement is given to the APs; (vi) Hefei Municipal Government (HMG), the executing agency (EA) and an

iv

independent / third party will monitor compensation and resettlement operations; (vii) vulnerable groups should receive special assistance to ensure they are better off, so that the APs listed in the RP will have the opportunity to benefit from the project; (viii) RP will be combined with the overall City / County / District planning; and (ix) the resettlement budget will adequately cover the full aspects of all compensation required. III. Responsible Organizations The IA, together with Xinzhan Resettlement Agency will be responsible for the project implementation and land resettlement and house demolition and co-ordination. The land acquisition and demolition office is composed of officials from land administration departments and urban construction departments. All affected residential committees and villages provide one staff member respectively to the land acquisition and demolition office, responsible for the work concerned with demolition and resettlement and income rehabilitation activities. IV. Public Participation Public participation has been the key to this RP and from September of 2005 to June 2006, a number of consultation meetings have been held in the project area. Participants from the HMG, PMO, urban Community Resident Committees (CRCs), Xinzhan Administrative Committee, land administrative bureau (LAB), civil department, women’s federation, urban spatial planning department, APs and Consultants. Project investigation has been undertaken in all three CRCs. These meetings and investigations have generated a lot of interest in the resettlement policies and compensation entitlements. More consulting meetings will be required in the future. Affected people have participated in the preparation of the resettlement plan and their concerns and comments have been included in the resettlement plan already. V. Grievance Affected people can propose any complaint related to land acquisition, resettlement, income rehabilitation and compensation. The grievance procedure is described clearly in the resettlement plan (RP) and explained to APs in the meetings held by the IA - HXSAOC and the district land acquisition and demolition office before any action of land acquisition and demolition takes place. VI. Costs According to the project FSR and subsequent investigations, the resettlement cost is estimated CNY283 million including a contingency equivalent to 10%, which may be adjusted during Project implementation. The costs for resettlement are about 48% of the total base costs for the Project. The Project IA will ensure that sufficient funds are made available to cover all necessary resettlement issues. VII. Schedule The land requisition and resettlement is scheduled to begin in July, 2007 and to be completed in December, 2007, hence lasting for 6 months. Civil works will not begin before compensation for the APs are paid in full, which is in accordance with the recently promulgated

v

State Council Decree #31. VII. Monitoring and Report Internal and external monitoring will be conducted on the implementation of the resettlement program. HXSAOC will be responsible for internal monitoring and prepare regular reports to the ADB covering the progress of the resettlement, discussing key issues about compliance with the RP and compensation policies. The PMO will engage an independent agency to conduct external monitoring and assessment and prepare an assessment on resettlement progress, compensation disbursement, and other measures to ensure that the APs maintain standard of living and do not suffer because of the Project.

vi

KEY TERMINOLOGY

Affected Persons： Affected persons (APs) include any person, household, enterprise or private unit that has following changes caused by the project: (i) Living level is subjected to negative influence; (ii) House, land (including house site, commercial land, agricultural land, woodland or grassland), water resource or any other movable property or real property gained or owned are subjected to restrictive and negative influence, wholly or partially, permanently or temporarily, so that their rights, qualifications or interests are subjected to affect; (iii) Businesses, occupations, works or living places or environments, which may be moved or may not be moved, are subjected to negative influence. Replacement Cost: Replacement Cost refers to a method of asset evaluation that uses market price to replace lost property or uses its closet 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 HMG 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. Allocation of the land use right refers to acts that, after the land user has paid compensation and expenses for resettlement, etc. with the law, allocate the land to the land user or gratuitously allocate the land-use right to the land user. Transfer of the land use right refers to the acts that the State grants land users the right to use the State-owned land for a certain number of years on condition that the users shall pay the State a transfer fee for the land-use right. Basic Farmland generally means the fertile land used for agricultural production. In this Project there is no basic farmland occupied. The following lists Article 34 of the Land Administration Law of the PRC:

vii

Article 34: The State fosters the system of protecting the basic farmland. The following cultivated land shall be demarcated as basic farmland protection areas and subject to stringent control according to the general plans for the utilization of land:

1. Cultivated land in the grain, cotton and oil-bearing crops production bases approved by the land administrative department of the State Council or the local people's governments at and above the county level;

2. Cultivated land with good water conservancy and water and soil conservation facilities and medium-and low-yielding land where the execution of amelioration plan is in progress or medium-and low-yielding land that is transformable.

3. Vegetable production bases; 4. Experimental plots for research and teaching; 5. Other cultivated land that should be designated as basic farmland protection areas as

provided for by the State Council. Areas of basic farmland demarcated by various provinces, autonomous regions and municipalities should make up over 80% of the cultivated land within their administrative areas. Basic farmland protection areas shall be demarcated with township (town) as the unit and the protection of which shall be carried out by the land administrative departments of the county level people's governments together with agricultural administrative departments of the same level. Community Residents’ Committee (CRC): This is the product of recent urbanization in Hefei City as well as other cities in China. It refers to the transformation from original suburb villages toward urban communities (street or neighborhood), and correspondingly, the original villagers’ committee is changed into community residents’ committee which is still different from a pure urban street residents’ committee in terms of the overall quality of its population. However, in other areas, CRCs share the equal right as other urban communities do, e.g., all the CRC leaders get full salary from government rather than a villager leader who only get subsidies from government and have to do farming work by themselves. Currently the overall target for a CRC is to transfer the agricultural population into urban citizens, which means not only the physical transfer of their registration status (Hukou) but also the overall quality of population and life style.

viii

TABLE OF CONTENTS Page

ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN ........................................... I

LIST OF ACRONYMS AND MEASURES........................................................................... II

EXECUTIVE SUMMARY.................................................................................................. III

KEY TERMINOLOGY......................................................................................................VI

I. INTRODUCTION AND PROJECT DESCRIPTION........................................................... 1

1.1 Introduction ............................................................................................................................. 1 1.2 Project Background ............................................................................................................... 1 1.3 Description of the project ...................................................................................................... 3 1.3.1 Comparison of Road Schemes ......................................................................................... 3 1.3.2 Major Technical Indicators ................................................................................................. 4 1.3.2 Impact of land acquisition and resettlement ............................................................... 5

II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT ............................................. 7

2.1 General description................................................................................................................ 7 2.2 Impact of Land Acquisition and Resettlement .................................................................... 7

III． SOCIAL ECONOMIC FEATURES AND IMPACTASSESSMENT ............................... 11

3.1 Social and Economic Status ............................................................................................... 11 3.2 Current Social and Economic Status of Affected Communities...................................... 11 3.3 The Socioeconomic Survey ........................................................................................... 11 3.4 Social and Economic Status of Affected People .............................................................. 12 3.4.1 Demographic Features of APs ........................................................................................ 12 3.4.2 Housing Conditions .......................................................................................................... 14 3.4.3 Land Resource and Land Tenure ................................................................................... 15 3.4.4 Financial Status and Vulnerable Group.......................................................................... 16

3.5 GENDER ANALYSIS ........................................................................................................... 17 3.5.1 Gender Difference in Education...................................................................................... 17 3.5.2 Gender Difference in Occupation and Income.............................................................. 18 3.5.3 Gender Perspectives on Resettlement .......................................................................... 19

3.6 IMPACT ASSESSMENT ....................................................................................................... 20 3.6.1 Land Loss .......................................................................................................................... 20 3.6.2 Houses............................................................................................................................... 21 3.6.3 Enterprises/Businesses/Shops ....................................................................................... 21 3.6.4 Income Losses.................................................................................................................. 21

IV. PARTICIPATION, CONSULTATION AND GRIEVANCE REDRESS .............................. 22

4.1 IDENTIFICATION OF STAKEHOLDERS .................................................................................. 22 4.2 CONSULTATION DURING PROJECT PREPARATION ............................................................... 22

ix

4.2.1 Public Consultation........................................................................................................... 22 4.2.2 Public Participation and Consultation Plan.................................................................... 23

4.3 DISTRIBUTION OF THE RP................................................................................................. 24 4.4 APPEALS AND GRIEVANCE REDRESS................................................................................. 24

V LEGAL FRAMEWORK AND RESETTLEMENT POLICIES ........................................... 26

5.1 BRIEF INTRODUCTION....................................................................................................... 26 5.2 THE ADB INVOLUNTARY RESETTLEMENT POLICIES............................................................ 26 5.3 RELATED LAWS AND REGULATION OF CHINA...................................................................... 28 5.4 GAPS BETWEEN ADB AND CHINA POLICIES ....................................................................... 28 5.5 PROJECT POLICIES ON RESETTLEMENT ............................................................................ 30 5.6 COMPENSATION STANDARDS ............................................................................................ 30

5.6.1 Principles ........................................................................................................................... 31 5.6.2 Methodology of Evaluation on Compensation Rates ................................................... 31 5.6.3 Applicable Compensation Standards ............................................................................. 34

5.6 COMPENSATION FUND FLOW AND TIMING.......................................................................... 35 5.7 ELIGIBILITY AND COMPENSATION ENTITLEMENT ................................................................. 36

VI. RELOCATION OF HOUSING AND SETTLEMENT ..................................................... 38

6.1 RESETTLEMENT TARGETS................................................................................................. 38 6.2 RESETTLEMENT OPTIONS................................................................................................. 38 6.3 HOUSEHOLD RELOCATION AND RESETTLEMENT PLAN ....................................................... 39 6.4 SPECIAL CONCERNS ........................................................................................................ 40 6.5 PREFERENTIAL POLICY..................................................................................................... 40

VII. INCOME REHABILITATION...................................................................................... 42

7.1 CONTEXT......................................................................................................................... 42 7.2 FORMULATION OF INCOME REHABILITATION STRATEGY ...................................................... 42 7.3 INCOME REHABILITATION PLAN ......................................................................................... 43

7.3.1 Social Safeguards ............................................................................................................ 43 7.3.2 Plans on Use of Compensation Fund by Collectives ................................................... 43 7.3.3 Use of Compensation Fund by Individuals .................................................................... 46 7.3.4 Technical Training for APs ............................................................................................... 46 7.3.5 Project Related Income-generating Opportunities........................................................ 47

7.4 GENDER ISSUE DURING THE PROCESS OF RESETTLEMENT ................................................ 47 7.6 ASSISTANCE TO THE VULNERABLE HOUSEHOLDS............................................................... 48

VIII. BUDGET ON COMPENSATION AND RESETTLEMENT........................................... 50

8.1 Contents of Resettlement Cost .......................................................................................... 50 8.1.1 Land acquisition and resettlement.................................................................................. 50 8.1.2 Infrastructures ................................................................................................................... 50 8.1.3 Other costs ........................................................................................................................ 50 8.1.4 Relevant taxes and fees .................................................................................................. 51 7.1.5 Contingency ...................................................................................................................... 51

x

7.2 FINANCING AND DISBURSEMENT PLAN .............................................................................. 51

IX. INSTITUTIONAL FRAMEWORK................................................................................ 53

9.1 PROJECT RESETTLEMENT ORGANIZATIONAL SET-UP ......................................................... 53 9.2 RESPONSIBILITIES............................................................................................................ 54 9.3 INSTITUTIONAL CAPACITY STRENGTHENING....................................................................... 55

8.3.1 Assessment of Institutional Capacity.............................................................................. 56 8.3.2 Institutional Capacity Building ......................................................................................... 56

8.4 ROLES OF CIVIL ORGANIZATIONS ...................................................................................... 57

X. IMPLEMENTATION SCHEDULE................................................................................. 58

10.1 ACTIVITIES PRIOR TO RESETTLEMENT............................................................................. 58 10.2. ACTIVITIES DURING RESETTLEMENT............................................................................... 59

XI. MONITORING, EVALUATION AND REPORTING ....................................................... 64

9.1 INTERNAL MONITORING .................................................................................................... 64 9.1.1 Objectives of Internal Monitoring .................................................................................... 64 9.1.2 Major Tasks of Internal Monitoring.................................................................................. 65

9.2 EXTERNAL MONITORING AND EVALUATION......................................................................... 65 9.2.1 Objectives .......................................................................................................................... 65 9.2.2 Methodology...................................................................................................................... 66 9.2.3 Major Tasks ....................................................................................................................... 66

9.3 REPORTING REQUIREMENTS ............................................................................................ 67

ANNEXES ..................................................................................................................... 68

ANNEX 1 RESETTLEMENT INFORMATION BOOKLET (RIB) ......................................................... 68 ANNEX 2 TOR FOR EXTERNAL MONITORING AND EVALUATION ................................................. 72 ANNEX 3 XINZHAN LAND COMPENSATION BY-LAW ................................................................ 75

xi

LIST OF TABLES Page

Table 1-1 Major Technical Standards of Proposed Roads................................................... 4 Table 2-1 Project Impact on Land and Households ............................................................. 8 Table 2-2 Type of Land to be Permanent Acquired due to Project ..................................... 8 Table 2-3 Type of Land Attachments .................................................................................... 9 Table 3-1 General Information on Affected CRCs.............................................................. 11 Table 3-2 Surveyed Villages and Number of Households ................................................. 12 Table 3-3 Demographic Features of Surveyed Households.............................................. 13 Table 3-4 Household Conditions of Surveyed Households ............................................... 14 Table 3-5 Land Statistics of Surveyed Households............................................................ 15 Table 3-6 Land Loss Statistics of Surveyed Households................................................... 15 Table 3-7 Per Capita Financial Status of Surveyed Households in 2005 ......................... 16 Table 3-8 Income Sources of Surveyed Households in 2005 ........................................... 17 Table 3-9 Expenditure Patterns of Surveyed Households in 2005 ................................... 17 Table 3-10 Women’s Share of Household Income in 2005.............................................. 19 Table 3-11 Point of View related to Resettlement ............................................................ 19 Table 4-1 Summary Consultation Records......................................................................... 23 Table 4-2 Consultation Plan ................................................................................................ 24 Table 5-1 Gaps between ADB and PRC Policies on Involuntary Resettlement ............... 29 Table 5-2 Summary of Resettlement Principles ................................................................. 30 Table 5-3 Example Showing the Replacement Cost.......................................................... 33 Table 5-4 Compensation rates for acquisition of collective land and attachments........... 34 Table 5-5 Compensation rates for house/building demolition ........................................... 35 Table 5-6 Compensation Entitlement Matrix ...................................................................... 37 Table 7-1 Preference of APs income rehabilitation ............................................................ 43 Table 8-1 Resettlement Budget........................................................................................... 52 Table 9-1 Resettlement Institutions involved and Staffing ................................................. 54 Table 9-2 Responsibilities of Agencies ......................................................................................... 54 Table 10-1 Resettlement Implement Schedule (Supervision Milestone)......................... 61

LIST OF FIGURES Figure 1 Location Map of Proposed Roads ........................................................................ 5 Figure 2 Location Map Showing Established and Planned Resettlement Communities 10 Figure 3 Education Difference between Male and Female Groups ................................ 18 Figure 4 Vocation Differences between Male and Female Groups................................. 18 Figure 5 Flow of Compensation Fund............................................................................. 36 Figure 6 Resettlement Organization Structure ................................................................. 53 Figure 7 RP Planning and Implementation Schedule ...................................................... 63

1

I. INTRODUCTION AND PROJECT DESCRIPTION

1.1 Introduction

1. The Resettlement Plan (RP) report is prepared in accordance with (i) ADB Policy on Involuntary Resettlement, Operational Manual F2: Involuntary Resettlement (Operations Manual, issued on September 25, 2006), (ii) Gender Dimension of Resettlement (Gender Checklist: Resettlement, March, 2003) (iii) other relevant social security guidelines; (iv) Chinese laws and regulations, (v) and local by-laws and policies, which provide a framework for mitigating negative impacts by using measures to recover the income of the affected persons (APs). 2. For ADB and the PRC Government, the fundamental objective of the RP is to ensure people whose land or property is unavoidably lost due to the Project, receive adequate assistance so that they would be at least as well-off as they would have been in the absence of the Project. Hefei Xincheng State Assets Operating Company Ltd (HXSAOC), are the implementation agency (IA) and Xinzhan Construction Commission, the implementation unit responsible for Project implementation. Hefei PMO will have an overseeing role. 3. The RP is prepared based on: (i) review and discussion with authors of the relevant project reports, especially the feasibility study report (FSR) for the Project, environmental impact assessment (EIA) report, the original RP report (2005) that was prepared by the IA with assistance of Hefei Design Institute of Coal Industry; (ii) a field survey on the project design area; (iii) consultations with the affected household; and (iv) the social economic survey for the APs conducted during April-July 2006. 4. Engineering data for the RP are taken from the FSR and considered reliable. Data regarding resettlement impact and cost will be reviewed and revised and the RP will be updated, based on detailed measurement survey (DMS) for further assessment on the impact before the land acquisition takes place. Any findings through the DMS will be reflected in the updated RP and a final budget will be presented. The updated RP will be submitted to ADB for approval and then be disseminated to the APs. The current RP will be disseminated to APs and uploaded on the ADB website before loan appraisal. Finally, the RP will be endorsed by Hefei Municipal Government (HMG) before MRM.

1.2 Project Background

5. Hefei City is being developed on the basis of ring roads plus a grid road network. At present there are two ring roads (outer and inner), both of which have been completed. Both ring roads pass through the Xinzhan Experimental Zone (the project area) in the northeast part of the city, with (most of) the project roads located just north of the outer or 2nd ring road. 6. Since 1983, the city has renovated more than 20 trunk roads. Now the entry and exit roads of the city in the east, south, west and north directions are all cement concrete roads with a width of 45-60m. As of 2004, the road length in the municipal area was 241 km, of which 26 main roads counted for 151 km and 66 secondary roads 234 km. Roads leading to the three counties were 769 km. Total road length including rural areas was 1,010 km. 7. It is not surprising therefore that in the past 5 years the overall increase in motor vehicles

2

has been high, averaging at 17% per annum. The rate of increase for private cars has been even higher, registering a 25% annual increase in the past 2 years. In addition there are about 800,000 bicycles in the city. As the density of the road network is comparatively low and the construction of primary and secondary trunk roads has not kept pace with the city’s development, there is growing pressure on traffic flow, particularly in the city center. 8. The project as first proposed involved construction of 38km on five main roads and some branch roads in the Hefei New Railway Station Comprehensive Development Experiment Development Zone (NR Zone) in the north east of Hefei. As a result of ADB initiatives during the Inception mission, the project was reduced to 26.4km on five roads and will include a Traffic Management, Monitoring and Control System component. The NR zone was created in 1992. By end 2003, the NR zone contained 412 projects (27 foreign owned) and fixed asset investment was CNY 8.4 billion, of which CNY 2.9 billion was in infrastructure. Production was around 10% of Hefei’s GDP. The area was originally 10 km2 but was increased to 34 km2 in 2004 by the addition of Qilitang Township. There are 70,000 permanent residents, of which 15,000 residents of Qilitang are classified as agricultural. Major residential, commercial and recreational facilities have been or are under construction. The station is in the middle and the provincial tourist bus station is in the east of the area. 9. As now developed, the area north of the station includes only one main road, Zhangwa, which runs north south, and a few minor roads. A basic road network comprising 9 roads has been completed with another 8 roads under construction. Zhangwa will be widened with other financing and the project will build off this road, opening up a large area of some 34 km2 north east of the station. Land use planning for the zone is very basic and broad. At present the concept is to concentrate on the general scope of the planned area of the zone, which includes the comprehensive development of the area south of the second ring-road as a Phase 1 project and the new area north of the second ring-road as Phase 2.. The focus point is to be the Hefei Railway New Passenger Station plus areas for commerce, trade, finance, recreation, industry, residences and storage. The residential areas will be concentrated to the east, southwest and north of the station. 10. It is also planned that the Experimental Zone will be a model environmental area with construction of multi-layer dense forests along the marshalling yard of the railway and within 200m on either side of the railway. The objective is to minimize the railway noise interference to the city. Greenbelts of 200m wide will also be constructed along the bank of the Ershibu River to protect the environment. In other parts of the Experimental Zone, trees are to be planted along all farmlands with forestation on every hill. A number of parks are also planned within the experimental Zone as integrated parts. 11. At present, there are no roads in the area under development consideration, or the roads are only partially completed. The roads identified as part of this Component form the backbone of the experimental Zone north of the 2nd ring road. As this area is fast developing there is an urgent need to assist this development through the construction of much needed infrastructure. 12. There are three broad project objectives which have been articulated by the Hefei City administrators and the Experimental Zone Committee with respect to the Improved Road Infrastructure and Traffic Management in the Xinzhan Transport Model Zone Component. These include the development of this Zone as: (a) a model environmental zone, which includes green spaces, utilities including sewerage and water pipes in road right of way, and emission control mechanisms. (b) a transport hub (freight logistical center) for road and rail, which inter-faces both modes and includes both a rail freight transfer area and truck depot; with special attention to traffic circulation (lights and signage), pedestrian safety (traffic managements), accident-free. Create a transport hub area bounded by distinct borders to

3

ensure containment (such as a transport hub zone) and (c) an area in harmony with its surroundings, integrating the utilities with those of the surrounding area, has a positive traffic flow environment, pays special attention to division of land use through zoning for residential and commercial/industrial use, and also includes transport inter-linkage infrastructure with freight forwarding activities, bonding facilities, freight transfer points (road to rail and vice versa) without interference.

1.3 Description of the project

1.3.1 Comparison of Road Schemes

13. During the FSR stage, two alternatives for the road construction component were considered:

• Scheme 1: New construction or widening of existing roads towards the north of the New Railway Station, which includes Zhangwa Road, Wuliu Road, Huainan Road, Huanyuan Road (sections of No.1,2,3,4,and 5). The widening and construction of Zhangwa and Wuliu roads, although they can improve the traffic situation, would imply that the traffic volume is still not well balanced in that area, and residents are densely populated along both sides of these roads while schools, kindergarten, hospital, factories, bus terminals would also be affected. Obviously, construction of this scheme will not only increase the project cost for resettlement, but also cause great inconvenience to APs.

• Scheme 2: New construction of roads towards the north of the New Railway Station, which include roads of Xinfeng, Xinfei, Huainan, Huanyuan Road (sections of No.1,2,3,4,and 5) and Dianchang Road. Implementation of this scheme can (i) improve the worsening traffic situation significantly of the north side of the New Railway Station; (ii) promote economic development and employment; (iii) significantly reduce the total amount of house demolition, and (iv) beautify the surroundings of the city fringe area nearby.

14. Pictures taken from both schemes below show the difference of resettlement impacts. It is obvious that both schemes can improve the transport situation, but scheme 2 will involve a significantly smaller amount of demolition, much less resettlement, will be cheaper, and have minor adverse social and environmental impact during construction—with low air and noise pollution. After reviewing technical, environmental and financial comparisons of these two schemes, scheme 2 is recommended for construction. As a result, it is estimated that about 300 households/businesses, with a total floor space of 35000 m2 have been avoided from resettlement.

4

Pictures showing the difference on resettlement impact between Scheme 1 (left column) and Scheme 2 (right column)

Scheme 1 Scheme 2

1.3.2 Major Technical Indicators

15. According the recommended scheme 2 in the FSR, this component will cover the construction of fiver roads: Xinfei Road, Huainan Road, Dianchang Road, Xinfeng Road and Huanyuan Road (composed of road parts No.1 to No.5), with a total length of 26.4 km. The major indicators are listed in Table 1-1 (also see Figure 1). Table 1-1 Major Technical Standards of Proposed Roads

No. Roads Grade description Redline1

width (m)

Length (m)

Links to land

acquisition

1 Xinfei Road Grade 1 secondary urban trunk road 30 4785 Yes

2 Huainan Road Grade 1 main urban trunk road 45 3626 Yes 3 Dianchang Road Grade 1 main urban trunk road 45 1687 Yes

4 Xinfeng Road Grade 1 secondary urban trunk road 30 3670 Yes

5 Huanyuan Road No.1

Grade 1 secondary urban trunk road 30 2576 Yes









5

No. Roads Grade description Redline1

width (m)

Length (m)

Links to land

acquisition Total 26378

1 Redline represents the line on plans and maps that depicts the maximum extent of the proposed new road width. This provides an accurate indication of land and property that will be affected.

Figure 1 Location Map of Proposed Roads

1.3.2 Impact of land acquisition and resettlement

16. The permanent land acquisition of this component is 2137mu including the cultivated land of 1405mu. 2,837 people are directly affected. There is no temporary land

6

occupation. Chapter 2 provides full details of the impacts that will be caused by this component.. (According to consultations held with representatives of the Demolishing Agency of Xinzhan Zone, the land of the Project area has not been requisitioned thus no compensation has been paid to the CRCs yet).

7

II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT

2.1 General description

17. The scope of land acquisition and resettlement of the component mainly includes land within the red line planned along the proposed roads routes and the total land acquisition necessary for this component is 2136.8 mu. 17. The impact data has mainly been obtained through statistical methods, questionnaires, on the spot survey and informal discussions with APs on houses and attachments to be lost during the project construction. The information mainly comes from the following sources:

The Project IA – HXSAOC and XCB paid visits and made investigations on the impact of the Project, collected the information from the Hefei Statistics Bureau (HSB), development and planning bureau and other relevant departments, called on the local officials, community leaders and the farmers whose lands might possibly be requisitioned and asked their opinions for land acquisition, removal, resettlement and compensation of land and houses.

On–the-spot investigation data from a survey conducted by the Hefei Design Institute under the Ministry of Coal Industry, the authors of the original RP.

2.2 Impact of Land Acquisition and Resettlement

18. During the FSR stage, the IA and the project DI adopted technical measures to minimize the land acquisition and resettlement, but unavoidably the following properties are to be potentially earmarked as affected but further confirmation will be undertaken during the detailed design stages: (i) Land: dry land, vegetable land, fruit land, paddy land, ponds and temporary occupied land; (ii) Different structures of housing: brick and cement, brick and wood, wood; (iii) Structures and properties attached on the groundwater: wells, enclosing walls, graves, etc; (iv) Trees: fruit trees and scattered trees and (v) Facilities, such as: electricity wires poles, etc.

19. The permanent land acquisition of the project is 2,136.8mu including 1404.8 mu cultivated land, which will affect three CRCs i.e., Zhangwa, Huaifei and Huaihe in Qilitang Street Office (sub-district) of Xinzhan Zone. The number of APs is 2,837, there is no temporary land occupation, the area of housing/buildings to be demolished is 66,496 m2 and the population directly affected by demolition is 1,928 persons in 651 households that are included within the total APs, with land losses. Table 2.1 has details of the impact and Table 2.2 provides details of the type of land to be permanently acquired by the Project.

20. Currently the residents’ status is in transition as the HMG is processing the status transfer certificate for farmers in the CRCs. In principle, once the farmers have become urban citizens, they will loss their land automatically. However, during the transitional time, the households are not moving far, and they are able to still work on their land and may not need to move their move their housing. The significant benefit is the all the transferred farmers can share the benefit from urban social safeguard system. Under this situation, the severities of the impacts according to the proportion of land for the agricultural households have been pointed out by CRC leaders in the field. And one from every five households has been sampled (covered 20%) for the severely affected persons, and 14.6% of affected persons in total.

21. Based on the Xinzhan Master Plan (2004-2020), the three CRCs in Qilitang

8

Sub-district of Xinzhan Zone—Zhangwa, Huaifei and Huaihe in the Project area all have been planned to move to a new resettlement community respectively. Currently four resettlement communities in the same sub-district have been completed and residents from previous four villages have moved or are moving into. The new residential communities are planned one for each CRC, which located within the jurisdiction of their original villages (See Figure 2).

22. Under this situation, it is clear that this project is only a small part of the overall local development plan: i.e., in terms of timing of relocation, the project will only cover a 2-year period from 2007-2009, and in terms of spatial distribution of land relocation, the project will only cover the area within the Right of Way (ROW, which is the actual area in the field demarcated with pegs based on the red line) of the planned road routines. Now the project land acquisition will involve part of these village be relocated. Based on the cultivated land to be acquired, the loss proportions for that are 37.4% in Zhangwa, 3.9% in Huaifei and 39.5% in Huaihe CRC.

23. The types of ground attachments affected by the project mainly are power poles, enclosure walls, graves, trees, water wells and gravel roads. Further details are provided in Table 2.3. The most important affected attachments are the graves that will need to be relocated, water wells that will need to be replaced (no guarantee of water) and a large number of indigenous trees and fruit trees. A relatively small amount of electricity poles and graveled road will be affected as the area is predominantly agricultural land. Some standing crops will be affected. These are classified according to Article 5 of HZM(2004) No 17 contained in Annex 3 of this RP which shows the applicable compensation rate.

24. Special consideration will be given to the graves as this a topic that can cause some anguish among APs, especially if those affected concern close family members (See Section VI) .

25. A full socio economic survey and analysis has been undertaken within the affected area and the results of this analysis are provided in Chapter 3 of this RP. Table 2-1 Project Impact on Land and Households

Permanent land acquisition (mu) House demolishing

No. Sub-district/Town-ship CRCs Area

Mu No.

Households affected

No of APs

Area m2

House- holds

affected No of APs

1 Qilitang Zhangwa 842.3 181 535 25,000 181 5352 Qilitang Huaifei 42.5 35 102 1,896 18 563 Qilitang Huaihe 1252 760 2,200 39,600 452 1,337

Total 2,136.8 976 2,837 66,496 651 1,928 Table 2-2 Type of Land to be Permanent Acquired due to Project

CRCs Paddy field

Area (mu)

Dry land Area (mu)

Other land used (mu)

Total Area (mu)

No of Household

affected

No of Population

affected Zhangwa 334.5 167.8 340 842.3 181 535Huaifei 26.1 16.4 42.5 35 102Huaihe 860 392 1252 760 2,200Total 1,220.6 184.2 732 2,136.8 976 2,837

9

Table 2-3 Type of Land Attachments Affected attachments Unit Amount Electricity poles No. of pole 24 Wall metre 4,544.5 Graves No. 1,878 Water wells No 47 Sand and gravel road m2 4,500 Mature Trees No 20,050 Young Trees No. 17,730 Mature Fruit Trees No. 1,656 Young Fruit trees No. 17,803 Standing Crops Mu 1404.8 26. The demolition and resettlement policies apply in this case are the Hefei Municipal Demolition and Resettlement Methods approved by the provincial people’s congress and the documents (no. 195) and its related document numbered 32, of 2006 respectively. Land acquisition mainly applies the Hefei’s documents of No.138 of 2003. A cutoff date for compensation eligibility is set as the time when field pegging conducted while detailed survey (DMS) is conducted, to prevent carpetbaggers.

10

Figure 2 Location Map Showing Established and Planned Resettlement

Communities

Caochong Reservoir

11

III． SOCIAL ECONOMIC FEATURES AND IMPACTASSESSMENT

3.1 Social and Economic Status

27. Hefei Municipality has three counties (Feidong, Feixi and Changfeng), four districts (Baohe, Luyang, Yaohai and Shushan) and three development zones (Hefei Hi-tech Industrial Development Zone, Hefei Economic and Technical Development Zone and Hefei Xinzhan Pilot Zone). According to official statistics Hefei’s GDP reached CNY56 billion and has a developed area of 210 km2 with the population of 2 million by 2005. Hefei’s GDP is projected to rise to CNY100 billion by the year 2010 and the city will cover the developed area of 280 km2 with an urban population of 3 million.

3.2 Current Social and Economic Status of Affected Communities

28. The component will affect 3 CRCs that are being transformed from rural villages to urban CRCs; however, many residents still earn a living as farmers. The general information for the three affected CRCs is listed in Table 3-1. Huaihe CRC is affected more than Zhangwa and Huaifei in terms of losses of households and land. All three CRCs share similar per capita net income.. Table 3-1 General Information on Affected CRCs

CRCs Index Zhangwa Huaifei Huaihe (1)Total households（#） 989 820 1,275 (2)Total population（person） 2,507 2,230 3,317 (3) Total cultivated land（mu） 1,344 1,096 2,177 (4) Per capita net income（CNY） 4,410 4,240 4,240 (5) Industrial structure Agriculture Secondary industry Tertiary industry

25% 50% 70%

17.1% 77.2% 5.7%

11% 70% 19%

3.3 The Socioeconomic Survey

29. This survey was undertaken by the Hefei Statistical Bureau (HSB) under the supervision of PPTA consultants in June and July 2006. Its main objectives were: (i) to compile socio-economic information on the APs likely to lose land or property to the project component; (ii) to obtain information on the extent of APs knowledge of the proposed sub component; and (iii) to identify APs’ preferences regarding land acquisition, house relocation and income restitution measures.

30. The survey involved collecting primary data from selected villages/urban residents’ communities and households on the proposed river rehabilitation alignment. Methodologically, three survey instruments were used: (i) a village level (including urban CRCs) questionnaire, administered to CRC leaders, and (ii) a household questionnaire administered to individual households 31. A strict purposive and bespoke sampling frame was designed for household and

12

business/survey and applied using data collected from the earlier IA survey and the current CRC level survey also conducted by the IA. Information collected by the HSB traversing the length of the road infrastructure Component and was also placed on maps prepared for the FSR. Under the frame, the following selection criteria were applied:

cover all village/urban communities that will suffer land loss; strong representation of households that will lose land, property or both with an

sample ratio of at least 20% (one of every five households) for those severely affected households,

inclusion of the least well-off or vulnerable households

32. Within each village/urban community individual households were selected on the basis of their proximity to the proposed road alignment. As the alignment has neither been finalized nor clearly marked on the ground, it is not certain that all interviewed households will definitely be affected by the Project1. This should not however affect the identification of the socio-economic characteristics of the APs. 33. The socio-economic survey covered 3 CRCs destined to be affected by the Project. The CRCs surveyed are indicated in Table 3-2. A total of 143 individual households (14.6% of total 976 households) were interviewed containing 448 people (15.8% of total APs). There were 10 shop/business managers were interviewed nearby the proposed road alignments. Table 3-2 Surveyed Villages and Number of Households

County/ District

Township/ Sub-district CRC

Surveyed Households (household)

Xinzhan Qilitang Zhangwa 30 Huaifei 17 Huaihe 96

Total 143

3.4 Social and Economic Status of Affected People

34. The social economic survey for the APs has been conducted for 143 households, of which, 67 male and 76 female household members were interviewed. Of the total 143 surveyed households, 139 households have agricultural status, and 4 households with non-agricultural status. This section will present the detailed findings on the household survey.

3.4.1 Demographic Features of APs

35. The detailed demographic features of surveyed APs are listed in Table 3-3, including age, population composition, education and occupation by sex.

1 The IA has indicated that in order to minimize land acquisition and resettlement, the road alignment will be further optimized during the detailed design stage.

13

Table 3-3 Demographic Features of Surveyed Households

Male Fe-male subtotal Item # % # % # % No. of Households

143

Household Size 3.1 Age ≤6 years 8 3.5% 12 5.5% 20 4.5% 7-19 Years 47 20.6% 48 21.8% 95 21.2% 20-35 Years 49 21.5% 46 20.9% 95 21.2% 36-50 Years 62 27.2% 64 29.1% 126 28.1% 51-60 Years 39 17.1% 30 13.6% 69 15.4% 61-70 Years 14 6.1% 11 5.0% 25 5.6% ≥71 9 3.9% 9 4.1% 18 4.0% Total 228 100% 220 100% 448 100%

.

Composition Kids 8 3.5% 13 5.9% 21 4.7% Students 46 20.2% 47 21.4% 93 20.8% Labor resource 160 70.2% 140 63.6% 300 67.0% Retired 14 6.1% 20 9.1% 34 7.6% Total 228 100.0% 220 100.0% 448 100%

Education Illiterate 4 1.8% 6 2.9% 10 2.3% Primary school 43 19.5% 69 33.5% 112 26.3% Junior mid school 120 54.5% 99 48.1% 219 51.4% High school 48 21.8% 28 13.6% 76 17.8% Vocational Edu. 1 0.5% 2 1.0% 3 0.7% College Edu. 1 0.5% 1 0.5% 2 0.5% University Edu. 3 1.4% 1 0.5% 4 0.9% Total 220 100% 206 100% 426 100% Missing data 2 2 Occupation No job 0 0.0% 0 0.0% 0 0.0% Farming only 56 35.4% 84 60.0% 140 47.0% Farming + second job

7 4.4% 8 5.7% 15 5.0%

Migrant labor 48 30.4% 30 21.4% 78 26.2% Business 4 2.5% 1 0.7% 5 1.7% Worker 38 24.1% 11 7.9% 49 16.4% Others 5 3.2% 6 4.3% 11 3.7% Total 158 100% 140 100% 298 100.0% Missing data 2 2 Remark: (1) Retired age here means 66 years old and above for male and 61 years old and above for female, thus the labor sources related to those who are above 16 years old but not at school and below these ages. (2) Missing data are listed in each item. Source: RP Social Economic Survey, 2006. 36. The ages of the surveyed population showed that the population is approximately normally distributed with the majority of the population between 20-50 years old who represent the major work force and account for 49.3% of total sample population. The age intervals are divided based on the population composition, e.g., the students accounted for 20.8% of the

14

total surveyed population, which is similar to the population of the 7-19 years old (21.2%). As for the labor force identification, many household members (over 60 years for male and over 55 years for female) were also reported as being in full time work, thus the true labor force population can be defined as between 16-65 years old for males and 16-60 years old for females who have left school or university education. According to this definition, therefore the total work force accounts for 67% of the surveyed population. 37. Over half of the household members have received junior middle school education, and primary school education ranked second. A total of 19.9% of surveyed members have finished or are pursuing high school and advanced level education including 7 persons who have finished or are pursuing college or university education. The 10 illiterate respondents are mostly those who are over 55 years old. 38. Generally, the occupation is classified as follows: the old people and women generally stay at home, engaged with farming and animal husbandry while the young people leave home for jobs. There are 47% of the total surveyed laborers engaged in agriculture only, and another 5% have a second job as migrant labor while they also engage in agriculture. Regular migrant labor accounted for 26.2% and approximately 1/3 of them do some form of farming activity, occasionally as a second job. Those who are engaged in business accounted for only 1.7%, regular workers accounted for 16.4%, and other occupations such as CRC leaders, accountants and physicians accounted for the remaining 3.7%.

3.4.2 Housing Conditions

39. Housing characteristics were assessed during the social economic survey although one tenth will not be affected (land acquisition only). Table 3-4 shows that the average housing area for owner occupied houses for each household is about 180m2, with the largest area of 583m2 (10 rooms).. Table 3-4 Household Conditions of Surveyed Households

Unit: square meters/household Item No. of

respondents/1Minimum Maximum Mean Std.

Deviation Rooms (#) 141 1 10 4.94 1.88

Floor space (m2) 141 23 583 180.08 84.09 /1: Two households from Huaifei Village renting houses for business in Huaihe Village, the house data of these two households were excluded from the total 143 surveyed households. 40. Most surveyed houses are brick and concrete structures—of all the surveyed households, 88% of their houses are brick-concrete structure, usually two-floor buildings, the remaining 12% reported their houses as brick-wood structures.

41. The survey also asked to what extent respondents’ houses will be demolished, 125 respondents answered and it shows that 86% of them recognized that all (100%) of their houses will be lost, and the remaining 14% answered that their houses will be partially affected, with the degrees ranging from 17-69% which implies that these households have at least two separate houses. The reason is that in the resettlement field, if one house/building to be affected, then all of the house/building will be demolished for the safety and environmental protection purpose as well as for avoiding unsightliness (otherwise it will be avoided, it is a “yes” or “No” choice). Therefore, when the respondents answer their housing will be partially lost, be sure they have another house/apartment. This is just an indicative answer since the IA has promised minimal impact of land acquisition and resettlement which will be further

15

addressed during the project design stage.

3.4.3 Land Resource and Land Tenure

42. The average cultivated land area per household is 2.67 mu (see Table 3-5), and 14 households have forest land, 3 households owns fish ponds, and 57 households have a small orchard. During the survey, the land loss also interviewed with household head. The result shows that the land loss ratios are discrete, with 24% of APs without land loss or they already have no land, and 60% respondents reported that they will lose all their land, and the remaining 14% of them will lose 23-90% of their land (see Table 3-6). This is an indicative reference since currently there is no pegging2 in the field, the survey conducted at the most approximate area. On the other hand, more seriously affected households had been sampled in order to meet the ADB requirement of targeting at least 20% of severely affected APs, thus these data cannot be used for detecting the total population of APs due to the controlled survey rather than random sampling survey. Table 3-5 Land Statistics of Surveyed Households

Unit: mu/household Item No. of

RespondentsMinimum Maximum Mean Std. Deviation

Cultivated land (grain land)

130 0.6 7.5 2.67 1.31

--Irrigated land 129 0.6 6.0 2.26 1.09 --Dry land 64 0.1 3.0 0.82 0.55

Fish pond 3 0.1 1.0 0.45 0.49 Fruit garden (orchard) 57 0.1 1.5 0.46 0.33 Forest land 14 0.6 4.6 2.42 1.26 Housing plot 114 0.1 2.0 0.28 0.21

Table 3-6 Land Loss Statistics of Surveyed Households

Range of land loss percentage No. of Households % of total surveyed Household 0 34 23.8%

23-27 3 2.1% 33-38 6 4.2% 47-67 9 6.3% 70-90 5 3.5% 100 86 60.1%

TOTAL 143 100.0%

43. Consultation with Hefei LAB and resettlement staff of the project area revealed that no tenure of reallocation of collective land in Hefei Municipality (the land redistributed during the second round contract period in late 1990s) has been conducted. Conversely, the HMG encourages the transfer from agricultural status to non-agricultural status following the

2 The land selection for road sub-component is not as strict as WWTP sites, the road alignment is more flexible without changing it traffic function. Thus the land area to be lost usually will be obtained late. According to PRC national standard (Guo Biao), the land scope should be defined at township level during the FS stage, village level during preliminary design stage and household level data during detailed design stage. Finally the exact amount of household land loss will be available during DMS after field pegging and face to face measurement with APs.

16

Anhui Provincial By-law of implementing the P.R.C Land Administration Law-- If a per capita land area is lower than 0.2 mu of a household, the household can apply for the conversion from agricultural status to non-agricultural status according to the following two pre-conditions of (i) per capita land area less than 0.2 mu after land acquisition and (ii) upon the application of the household, the latter more depend on the household affordability of making a live as a urban citizen.

3.4.4 Financial Status and Vulnerable Group

3.4.4.1 Household Financial Status 44. The incomes are divided into two categories: farming households and non-farming households. Given the complexity of the households surveyed in the joint areas of downtown and the countryside, the incomes, expenditures and savings of each affected household are carefully calculated based on “with farming income” and “without farming income” status rather than agricultural and non-agricultural status, as shown in Table 3-7. 45. On average, the incomes of the non-farming households are higher than those of farming households. It implies that they do not rely on land although some of them may have some land holding. The same patterns exist on per capita expenditure and savings. However, the minimum per capita net income for the farming household was CNY1,050 in 2005, which cannot be identified as poor, but those with a minimum net income of the non-farming households should be considered as poverty households even according to Chinese rural poverty lines (i.e. below CNY868 or 934). Actually of the total 16 non-farming households surveyed; 4 of them, with residents old and/or out of work, received government assistance in cash in 2005. Table 3-7 Per Capita Financial Status of Surveyed Households in 2005

Unit: CNY/Person Item N Minimum Maximum Mean Std. Deviation

Farming Households Per capita income 124 1050 88377 5768 8247 Per capita expenditure 124 550 12000 2706 1384 Per capita savings 124 -3250 76377 3062 7309 Non-farming Households Per capita income 16 700 32500 6694 8201 Per capita expenditure 16 1375 7250 3025 1748 Per capita savings 16 -800 25250 3669 6819

46. To understand the financial status of the surveyed households, it is necessary to understand the income sources and expenditure patterns. Statistical data showed that the income shares for both farming and non-farming households are almost the same. But the salary received by non-farming households is higher than those farming household (see Table 3-8).

47. With the expenditure pattern of surveyed households, it is possible to understand the reason why 3 households have a negative annual savings in 2005. Table 3-9 showed that the expenditures spent for children’s education accounted for 19.3% and 25.2% for farming and non farming households respectively, just behind food expenditure, which was ranked second. After tracking the survey data, it showed that the 3 farming households with negative savings all borrowed money for paying student tuition or related fees particularly for higher

17

education.

Table 3-8 Income Sources of Surveyed Households in 2005

No. of respondent N=143. Unit: % Item Agriculture Migrant

labor Salary Business Others Total

Farming Household 19.9% 39.2% 22.2% 18.2% 0.6% 100% Non-farming household - 39.6% 42.5% 8.2% 9.8% 100%

Table 3-9 Expenditure Patterns of Surveyed Households in 2005

No. of respondent N=143. Unit: %

Item Food Clothes Housing Educ- ation

Health- care

Culture and Recreation

Transport/ Communic- ations

Total

Farming Household 48.3% 16.3% 0.4% 19.3% 7.7% 4.0% 4.0% 100.0%

Non-farming household 41.6% 12.9% 1.2% 25.2% 5.3% 3.6% 10.2% 100.0%

3.4.4.2 Identification of Vulnerable Group

48. The vulnerable group has been identified based on the survey results. Firstly, segmentation of the population was adopted to examine the household financial status, these are (i) the agricultural population and non-agricultural population, (ii) those with land and without land. Secondly, those who have a negative yearly saving in each group have been examined. Thirdly, the situation in each group had been analyzed. 49. It is clear that of the total 143 households surveyed, 4 households (without farming income) have been identified as vulnerable households who already received government support, in addition, one farming household was in debt due to sickness in 2005. There is no ethnic minority group, and no women-headed household was found. Thus it is concluded that 5 households are identified as vulnerable, accounting for 3.5% of total surveyed households.

3.5 Gender Analysis

50. This part will discuss the gender issues related to the resettlement impact. In detail, this part will cover three aspects: (i) gender difference in education, (ii) gender difference in occupation and income, and (iii) gender views related to resettlement.

3.5.1 Gender Difference in Education

51. Based on the survey data tabulated in Table 3-3, it is clearly shown from the project affected area that the overall education levels of women are lower than men. Figure 3 showed that the percentage of education received for men’s and women’s groups. It is clear that except for similar percentages achieved at secondary education and above, levels women received lower education than men as represented by the left-shifted curve.

18

0.0

10.0

20.0

30.0

40.0

50.0

60.0

文盲(Illi.) 小学(PS) 初中(JM) 高中(HS) 中专(SS) 大专(CE) 大学(UE)

(%)

男(M) 女(F)

Figure 3 Education Difference between Male and Female Groups

Note: Illi.=Illiterate, PS=Primary School, JM=Junior Middle School, HS=High School, SS=Secondary School, CE=College Education and UE=University Education. M=male and F=Female.

Source: Based on education data from Table 3-3. No. of responses: N=426.

3.5.2 Gender Difference in Occupation and Income

52. Similar to and interlinked with the education background of men and women’s’ groups, 25% more women were engaged in farming than men, but 9% less women were engaged in jobs as migrant laborers and 16% less women worked as regular workers compared with the respective percentages of men’s (see Figure 4).

0

10

20

30

40

50

60

70

无工作(NJ) 务农(F) 打工(ML) 做生意(B) 工人(W) 其它(O)

(%)

男(M) 女(F)

Figure 4 Vocation Differences between Male and Female Groups

19

Note: NJ.=No Job, F=Farming, ML=Migrant Labor, B=Business, W=Worker and O=Others. M=Male, and F=Female

Source: Based on occupation data in Table 3-3, number of responses N=298.

53. Given the facts of potential APs’ education and occupation background by gender, subsequently the shares of women income in a household’s total income were reviewed (See Table 3-10). The results showed that the women’s share ranged from 5% to 90%, with an average of 36%. Table 3-10 Women’s Share of Household Income in 2005

Indicator Respondent (H.H.) Minimum Maximum Mean Std. Deviation

Women’s Income Share 104 5% 90% 36% 16.9%

3.5.3 Gender Perspectives on Resettlement

54. The male and female respondents were interviewed on the resettlement issues if their house/buildings have to be demolished, and the results are tabulated in Table 3-11. It reveals that the frequently mentioned (over 50% for “All” column) five major concerns (No.1, 2, 6, 7 and 5) and four minor concerns (No. 4, 9, 8, and 3) are almost in the same order as that for both male and female respondents, and the importance with respect to each group can be shown from the percentage of responses. It also shows that more male are concerned on education of their children than female (7% difference) in the surveyed households. Table 3-11 Point of View related to Resettlement

Male (N=59) Female (N=70) All (N=129)1 Item Major Minor Major Minor Major Minor

1 Fair compensation 100% 0% 100% 8% 100% 4% 2 Timely compensation 91% 9% 92% 8% 91% 9% 3 Starting a new business 23% 64% 19% 69% 21% 67% 4 Replacement land for

cultivation 3% 89% 7% 80% 5% 84%

5 Loss of income 56% 40% 56% 41% 56% 40% 6 Future employment 73% 23% 71% 25% 72% 24% 7 Education for children 76% 17% 63% 31% 70% 23% 8 Assistance during relocation 24% 71% 27% 69% 26% 71% 9 Separation from kin and

relatives 6% 83% 2% 85% 4% 84%

10 Other (assistance from government) 19% 3% 24% 2% 21% 2%

1 Based on total number of responses of 129. 55. In contrast to the house demolition, respondents treated land acquisition as a

20

relatively easy issue and only about 19 respondents mentioned that they would buy pension insurance, the majority mentioned they will use the compensation for a small business, and only 7 mentioned that they would use compensation for intensive agricultural production, which has been confirmed also in Table 3-10 that only a few respondents mentioned the replacement land for cultivation as the major concern. Nevertheless, overall about 84% respondents still mentioned this option as their minor concern, which is ranked first particularly for male respondents. The common practice is that no land reallocation has been implemented since the second round land contract. But during the urbanization process much land has been informally leased out by those households with more emigrant labor which is a common practice in China.. Given the current occupation skills, renting a piece of land personally from neighbors is the most practical and feasible choice (this is the case of without project). The leaders from the three affected CRCs estimated that about 25% of their cultivated land were leased out before 2004, but started from the project planning and feasibility study, farmers realized that their land would be acquired and cultivated by themselves. Therefore, for the land to be acquired there is no any household rent out their land, thus none renters to be affected. 56. It has a strong implication for the RP planning and implementation that all of these concerned raised by potential APs should be incorporated in this RP, and relevant countermeasures will be formulated and implemented.

3.6 Impact Assessment

57. Having reviewed the social economic conditions of surveyed households and their concerns on resettlement, this section will assess the social impacts with respect to the property losses to be caused by the project land acquisition and resettlement.

3.6.1 Land Loss

58. The land loss will definitely cause certain income loss for households, particularly for those without non-farming skills; however, with the exception of agricultural taxes and fees related to land, the losses to respective CRCs will not be severe. Therefore, the uppermost and only concern for the villages and CRCs is a fair compensation for the land to be lost. Similarly and further to the village/CRCs concern, the APs concern is to get a fair compensation paid in time during the land acquisition stage. 59. The survey results showed that the expenditure for non-farming household was CNY3,025 versus CNY 2,706 for farming households in 2005, and the expenditure spent for children’s education is higher in non-farming households than in farming households. Under this situation, if APs cannot afford the higher cost of an urban life, diversified choices should remain for them, for instance, continuing with their agricultural status with their remaining land after land acquisition. This point has been affirmed by many CRC officials. 60. The positive impact for the land users is that this is a rare chance for them to get cash paid to enable them to obtain a small business or another investment, or for those who can afford for a non-agricultural life change, they can change their agricultural status by applying for urban status, with better chances of housing and an improved standard of living. The basic benefit is that they will be incorporated into the urban social safeguard net—share the Least Subsistence Safeguard Line (LSSL) as Hefei designated CNY230/month per person as the minimum for subsistence, when their income particularly those lacking of non-farming

21

skills, or old, will be protected by the government LSSL program. Other benefits include joining free training organized by government for employment, and endowment insurance when they are old—women over 55 years old and men over 60 years old can get CNY100/month until lasting up to death.

3.6.2 Houses

61. The house demolition and relocation are the key issues for APs, both for agricultural and non-agricultural. In order to avoid any risk, the household income as well as future employment of APs should be borne in mind for the RP preparation and implementation. 62. The positive impact for house demolition is that APs’ housing condition will be improved, and for those to be affected by both land acquisition and resettlement, it does provide a chance to convert their status during the urbanization process...

3.6.3 Enterprises/Businesses/Shops

63. Based on the data provided by local CRCs in July 2006, there was not any enterprise or non-residential establishment to be affected after the optimization of the road construction scheme. A new round field check conducted by IA and DI in late October further confirmed that there is no enterprise or businesses/shops to be affected

3.6.4 Income Losses

64. This is the key issue particularly to those extremely poor, aged, women-headed households, disease suffering households and other vulnerable households. As the local government has already started social safeguard programs such as LSSL program in urban area, special assistance will be provided by the local sub-district. The Project will provide non-cash assistance such as relocation assistance over an above the LSSL. The Civil Affair Bureau and Social Safeguard Bureau will oversee the APs, and provide social insurance according to the local policies as documented in Annex 3 to ensure APs long-term livelihood. In short what Annex 3 states to ensure APs long term livelihood are (i) to assure endowment insurance focused social safeguard (since many cities in China have not established this yet); and (ii) ensure employment after land acquisition. Without employment, it is difficult to talk about livelihood. All these two point has been documented in PRC. State Council documents No. 28 and No.31. 65. For the APs with land loss, measures to reinforce the future employment will be taken to minimize the income risks, for instance, skill training is the key to help them to find a proper occupation or reinforce their farming skills.

66. To summarize, during the resettlement process, if the RP is well prepared with a fair compensation rate, all the resettlement issues are properly addressed and can be minimized, and the APs income level can be rehabilitated, and there is strong supervision by HMG, then there is every chance that the RP will be successful.

22

IV. PARTICIPATION, CONSULTATION AND GRIEVANCE REDRESS

4.1 Identification of Stakeholders

67. Public participation and consultation are important procedures according to ADB policies and Chinese laws and regulations. Above all, the stakeholders should be identified. According to the feature of the proposed project, the stakeholders can be categorized as primary sand secondary. 68. Primary stakeholders are identified as those directly adversely affected and those who purely benefit from the project, it mainly includes: (i) People directly affected by land and property losses; (i) Social and public institutions affected by land acquisition and resettlement; (iii) Villages CRCs as well as 5 townships/sub-districts (Jie Dao Ban) traversed by the river alignment; and (iv) all institutions and companies directly involved in the project construction and operation, such as construction contractors. 69. The secondary stakeholders include the indirectly beneficiaries such as the construction material suppliers, government organization involving in the project processing as well as those who are interested in the project and participated in the project related activities. 70. The purpose of identifying the project stakeholders is to ensure extensive public participation of and consultation to APs particularly those adversely affected in order to ensure the smooth implementation of the proposed project without affecting the AP’s livelihood. The following paragraphs describe what has been done and what still needs to be done in the process of achieving this goal.

4.2 Consultation during Project Preparation

4.2.1 Public Consultation

71. The public consultation process for the Project began in December 2003 with a series of surveys by the Project DI. HXSAOC and XCB have conducted a series of social mobilization measures since 2005. This was followed by further surveys and consultations carried out by the Hefei Design Institute of Coal Industrial Ministry in 2005-2006 and an in-depth socio-economic survey conducted by local survey teams supervised by the PPTA Consultants in June-July 2006. This survey also served to make the IA and DI aware of local conditions and of the APs’ concerns. A summary of the key consultations/meetings and issues discussed is contained in Table 4-1.

23

Table 4-1 Summary Consultation Records Institute Date Participants No. of

people Objectives Feedback/discussion of main issues

Hefei DI of Coal Industrial Ministry

May. 2005～April. 2006

Staff from Districts, Towns, CRCs/villages, AP households

10 Data collection for RP

--support the project and survey --understand the attitudes of APs --collect basic data

Local government, PPTA consultants

April. 2006

HMG Officials, PMO staff 12

Prepare for compensation and rehabilitation

--suggestions for compensation standards of land acquisition, --method to calculate replacement price --suggestions for resettlement management and livelihood

Hefei Statistics Bureau, PPTA consultants

June.-July 2006

CRCs /village leaders, AP household, business managers

143 RP household survey

--make adequate compensation plan to rehabilitate AP’s livelihood; --AP propose their choice for income rehabilitation; --discuss different ways of compensation, merits and shortcomings.

ADB Senior Resettlement specialist, TA consultants

June 14, 2006

Staff from PMO, IA and ADB officials 20 Keynotes for

RP

--ADB staff introduce preparation of RP, RP policies, experience of RP implementation; --PMO staff introduced the importance of RP.

72. The RP household survey revealed that the major concerns raised by the households are fair compensation. 73. The policies and entitlement matrix contained in this RP have been heavily influenced by the results of these meetings and surveys. This applies particularly to the derivation of the compensation rates and the formulation of an income restoration strategy based on cash compensation, and livelihood/training programs.

4.2.2 Public Participation and Consultation Plan

74. Notwithstanding the amount of public consultation already carried out, the EA/IA and local government fully accept that additional consultation meetings will be required after the PPTA mission and during the implementation of the resettlement and land acquisition process. The principal activities to be undertaken are: (i) Publication and dissemination of a Resettlement Booklet (see Annex 1), in standard Chinese, summarizing the policies, entitlements, compensation standards and rates, grievance procedures and resettlement/ land acquisition program, (ii) Formal CRC/village meetings to ratify the options relating to compensation disbursement and utilization, and (iii) Detailed Measurement Survey (DMS) in the field to measure and agree the final requirements for land, property and other acquisition, from each affected household/shop/enterprise. During each activity mentioned above, the Women’s Federation （WF） at the sub-district or CRC levels should be involved and provide explanation or assistance for women APs. Table 4-2 contains a schedule and activity of the consultation plan.

24

Table 4-2 Consultation Plan

Purpose of Event

Tasks Timing Implementation Agency

Partici- pants

Remark

1. Publicizing of RP program

Resettlement Booklet (RIB)

October 20, 2006

IA, District/County/ and Township Resettlement Agencies

All APs Completed

2. Disclosure of final RP, including compensation rates

Distribution of Chinese version RP

15, Dec., 2006

IA, District and Sub-district/ Township Government

All APs Distribution of final RP to all affected villages /CRCs

3. Conduct Detailed DMS Disclosure of updated RP

Face to face meetings with APs

June 2007 EA, IA, Resettlement Offices at district/county and Townships levels and township officials

All APs (i) inventory of all assets and land holdings; (ii) Creation of definitive list of APs; (iii) Prepare basis for household compensation contracts

4. Village level RP finalization and implementation

Village meetings

Dec. 2006-June 2007

District/County and Township level Resettlement Offices and village leaders

All APs (i) Identification and allocation of new housing sites; (ii) Finalization of compensation utilization options in each CRC; and (iii) Discussion of and decisions on how to invest/use compensation funds not distributed to individual APs

4.3 Distribution of the RP

75. Resettlement is a critical social activity. The information dissemination work will be performed well in advance to ensure that all people concerned understand the purpose of the project and the policies and procedures regarding land acquisition, resettlement, compensation, payment, and provision of grievance redress and appeal procedures. The EA/IA distributed a RP Information Booklet (RIB) (see Annex 1) on 20 October, 2006. The RP will be disclosed to all affected villages/CRCs by December 15 2006.

4.4 Appeals and Grievance Redress

76. Attention should be paid to participation of APs and affected organizations during the preparation and implementation of the RP. Mechanisms of grievance redress for undergoing projects of each IA are available and can be applied for this Project. 77. In case APs are dissatisfied with compensation arrangements made by the resettlement agencies, or they feel they are treated unfairly or unreasonably, they can seek

25

settlement through grievance or appeal redress procedures. Generally there are five channels for grievance redress in Hefei City: (i) the project IA, (ii) the external independent supervision institution, (iii) the township/CRC and the County/District LABs and Resettlement Offices, (iv) the HMG or (v) by taking legal action. 78. The Project IA: This is the direct channel to redress the project related grievance since each project subcomponent will establish an on-site land acquisition and resettlement office with telephone number disclosed, and most of the appeals will be settled at this level. 79. The External independent supervision Institution: There is a strong supervision committee led by HMG high ranking officials and consisting of about 20 members named as the Hefei Supervision and Management Committee for Land Acquisition and Resettlement (HSMCLR), with a major responsibility to inspect the compensation provided to APs. If the compensation (resettlement location, size and amount) and timing are not in line with the approved and disclosed document, the Committee has the mandate to stop the project construction. Therefore, if APs have grievance with the compensation and the timing, they can easily air their appeals to the HSMCLR members who patrolled from project to project frequently. 80. Township/CRC and the County/District LABs and Resettlement Offices: This is a formal project procedure for grievance redress to enable problems aired for those that cannot be settled by lower level institutions. However for each level, the solution must be done within one week, if it cannot be solved, then it must be submitted to its immediate higher authority for a solution. 81. The HMG: When APs feel dissatisfied with the implementation of the RP, they may submit an appeal or express their dissatisfaction in writing or verbally to the Municipal Land Administration Bureau and the Municipal Administration Office for Demolition and Resettlement. If their appeal is in verbal form, the two departments should record it and give settlement within 7 days. If APs are not satisfied with the solution of these institutes, they can go to see the deputy mayor at the “Mayor’s Appeal Redress Day” held each Monday morning. 82. Legal Action: In case any of the above solutions are not accepted by APs, they can appeal to the People’s Court according to Administrative Case Law or the PRC Ministry of Land and Resources. AP can appeal against any aspects of resettlement work, including compensation standards. 83. The complaints and appeal procedures will be conveyed to APs through public meetings and other information dissemination procedures, to ensure that they fully understand their rights and the mechanisms for complaint and appeal. r. Complaints raised by APs will be formally filed in writing with adequate follow-up for eventual resolution, and this documentation will be made available for the external monitoring officer at a later date.

26

V LEGAL FRAMEWORK AND RESETTLEMENT POLICIES

5.1 Brief Introduction

84. The PRC has established and carried out laws, regulations, and policies on resettlement and compensation for many infrastructure projects. This Project will follow the related Chinese laws, national and provincial regulations and local by-laws and policies, and also include comments and suggestions from APs, and meanwhile meet the requirement of ADB policy on involuntary resettlement. The ADB policies include:

1) Involuntary Resettlement, ADB, November, 1995, 2) Operations Manual F2: Involuntary Resettlement, ADB, issued on 25 September 2006,

85. Since local regulations and by-laws cannot be in conflict with those of upper levels, the following documents form the basis for the Project land acquisition, demolition and resettlement:

1. The Land Administration Law of the PRC (revised, 2004); 2. The Real Estate Administration Law of the PRC (effective on January 1, 1995); 3. The Management Methods of Urban House Demolition of Hefei Municipality (effective,

2003); 4. The Standards of Compensation and Subsidies for Urban House Demolition of Hefei

Municipality (HMG [2002] 195, effective, January1, 2003); 5. Interim Methods for Acquisition of Collective-owned Land of Hefei Municipality, HMG

[2003] 138,effective January 1,2003) 6. Approval on Basic Compensation Rate, Property Ownership Replacement Price

Difference and Temporary Resettlement Subsidies of Hefei Urban Housing Demolition, issued by Hefei Municipal Government, No. Hemi [2006] 32

7. Hefei Guidelines (HMG [2005]10) for Implementing No. 28 Documents (The State Council’s Decision on Further Reform in Strengthening Land Management, No. [2004]28).

8. Circular on Related Issues of Strengthening Land Regulation and Control, PRC State Council [2006] No. 31.

86. The above laws and regulations have improved the protection of those whose standard of living might decline because of the project development.

5.2 The ADB Involuntary Resettlement Policies

87. ADB Involuntary Resettlement Policy (1995) and Resettlement Operations Manual (OM Section F2) have already specified the 3 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. Some or all of these elements may be present in a project involving involuntary resettlement. 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:

27

（1） Involuntary resettlement should be avoided whenever feasible. （2） Where population displacement is unavoidable, it should be minimized by

providing viable livelihood options. （3） Replacing what is lost. If individuals or a community must lose all or part of their

land, means of livelihood, or social support systems, so that a project might proceed, they will be compensated and assisted through replacement of land, housing, infrastructure, resources, income sources, and services, in cash or kind, so that their economic and social circumstances will be at least restored to the pre-project level. All compensation is based on the principle of replacement cost.

（4） Each involuntary resettlement is conceived and executed as part of a development project or program. ADB and executing agencies or project sponsors, during project preparation, assess opportunities for affected people to share project benefits. The affected people need to be provided with sufficient resources and opportunities to re-establish their livelihood and homes as soon as possible, with time-bound action and coordination with the civil works.

（5） The affected people are to be fully informed and closely consulted. Affected people are to be consulted on compensation and/or resettlement options, including relocation sites, and socioeconomic rehabilitation. Pertinent resettlement information is to be disclosed to the affected people at key points, and specific opportunities provided for them to participate in choosing planning and implementation options. Grievance redress mechanisms for affected people are to be established. Where adversely affected people are particularly vulnerable groups, resettlement planning decisions will be preceded by a social preparation phase to enhance their participation in negotiation, planning, and implementation.

（6） Social and cultural Institutions. Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and socially harmony is promoted.

（7） No formal title. Indigenous groups, ethnic minorities, pastoralists, migrants/floating population, people who claim for such land without formal legal rights, and others, who may have usufruct or customary rights to affected land or other resources, often have no formal legal title to their lands. The absence of a formal legal title to land is not a bar to ADB policy entitlements.

（8） Identification. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census. A cut-off date is set preferably at the project identification stage, to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits.

（9） The poorest. Particular attention must be paid to the needs of the poorest affected people, and vulnerable groups that may be at high risk of impoverishment. This may include those without legal title to land or other assets, households headed by females, the elderly or disabled and other vulnerable groups, particularly indigenous peoples. Appropriate assistance must be provided to help them improve their socio-economic status.

（10） The full resettlement costs are to be included in the presentation of project costs and benefits. This includes costs of compensation, relocation and rehabilitation. Social preparation and livelihood programs as well as the incremental benefits over the without-project situation (which are included in the presentation of project costs and benefits). The budget also includes costs for planning, management, supervision, monitoring and evaluation, land taxes, land fees, and physical and price contingencies.

28

5.3 Related Laws and Regulation of China

88. This project can be implemented based on the PRC Land Administration Law (effective as of January 1, 1999) and the P.R.C. Urban Real Estate Administration Law (effective as of July 5, 1994) as well as the other rules and regulations related to them. The State Council No. 31 document, in terms of the resettlement aspect, stress Article 13 of the State Council No. 28 and supplemented with two important measures—(i) skill training for employment of land loss farmers (rather than provided jobs for them) and (ii) social security, which prescribed that the social security expenses should be included in the land compensation/resettlement subsidies. Here listed are the most important excerpts form State Council No. 28 document:

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. 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.

Article 13: Resettle the land loss farmers properly: County level and above

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.

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.

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 options 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 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

5.4 Gaps between ADB and China Policies

89. In comparing the gaps between ADB and PRC policies, Table 5-1 shows that the distinctive differences are in the aspects of information disclosure and consultation which are

29

lacking in content or in time delays. For some domestic central government funded small-scale projects, the only budget provided was for engineering works and the RP costs were left to the county or township government. Fortunately, this situation is changing and this Project is beyond that scope, as Hefei has well prepared local by-laws for land acquisition and resettlement, and there are no substantial differences from ADB policies. Table 5-1 Gaps between ADB and PRC Policies on Involuntary Resettlement No ADB IR Policy Comparison Remark 1 Involuntary resettlement should

be avoided whenever feasible No difference Usually conducted with technical and financial optimization (alternative analysis)

2 Where population displacement is unavoidable, it should be minimized by providing viable livelihood options

No difference c.f. Clause 13 of No. 28 document

3 Replacing what is loss No difference With compensation and assistance

4 Each involuntary resettlement is conceived and executed as part of a development project or program.

Slight difference Also see No. 10

ADB procedure has been and will be followed

5 The affected people are to be fully informed and closely consulted.

Different Usually no consultation, and the information disclosure are conducted after RP approval in China


6 Social and cultural Institutions No difference With compatibility analysis, China is experienced on this aspect

7 No formal title No difference. Negotiation on a agreed compensation price in China

8 Identification No difference (ADB statement “as early as possible” is vague)

9 The poorest No difference Provided assistance

10 The full resettlement costs are to be included in the presentation of project costs and benefits

Slight difference c.f. point of clause 12, No 28 doc. The full costs of land acquisition for national key development projects shall be included in the overall project budget.


90. Notwithstanding the minor difference in clause or statement, the most significant difference is on procedures, ADB requires RP preparation starting from the beginning of project preparation, but it will only be considered during the project land approval stage with no detailed social economic survey and no consultations with potential APs at that time. Meanwhile, during the time of project preparation, there are no specific persons responsible for RP affairs on a proposed project. It is very unlikely that project resettlement can achieve a successful result without a well-prepared RP. In short, the successful implementation of resettlement work needs strong enforcement of currently improved regulations and policies. Efforts have been made on this Project to bridge this gap by training and coaching IA staff. The ADB senior resettlement specialists, as well as PPTA consultants, have endeavored to make IAs fully understand ADB requirements and PRC policies on involuntary resettlement. This is just a start; further measures will be adopted after the PPTA phase and before RP

30

implementation (details are discussed in the institutional capacity section).

5.5 Project Policies on Resettlement

91. The compensation to the APs and resettlement policies are made based on the ADB’s policies and the laws and regulations of China. The first objective should be to assure the APs of their income rehabilitation and the increase of their living standard and minimize the social and environmental impacts. The preparation and the future implementation of the RP are based on the above targets. Special attention should be given to vulnerable groups, such as the poor, women, elderly, and disabled. In addition, the comparison of the schemes considers the need of the involuntary resettlers. 92. Table 5-2 summarizes the principles applied in the land acquisition and resettlement. The principles might be flexible regarding compensation, resettlement and rehabilitation considering the differences among communities (such as disbursement of cash, rehabilitation methods of communities and individual income rehabilitation). All these approaches target at the assistance with sufficient compensation to the APs during resettlement so as to rehabilitate and increase their livelihood.

Table 5-2 Summary of Resettlement Principles No. Principles 1 Assistance for rehabilitation to achieve at least the same level of well-being with the project as

without it.

2 Consideration about compensation and resettlement is given to all APs regardless their entitlement or not.

3 Relocation of land should ensure APs maintain their livelihood level based on the land after resettlement.

4 In case land per capita is not sufficient to maintain the livelihood of APs, compensation will be provided with cash or similar economic activities.

5 The APs should be fully informed and closely consulted on resettlement and compensation options and standards, social and economic rehabilitation, project implement schedule, and participate in the implement of resettlement.。

6 Land should not be acquired before the APs obtain the replacement land or sufficient compensation.

7 The EA and the independent third party conduct monitoring over the implementation of the RP.

8 Special attention should be given to poor people and other vulnerable groups to ensure their living conditions are improved. The APs should be provided opportunities to get benefits from the Project.

9 The RP should be combined with local development program.

10 The budgets of compensation and resettlement should be made complete and the funds should be disbursed in a timely manner.

11 Provision of transfer to urban registration (where applicable) 12 Land acquisition certificate 13 Adoption of modern socialist countryside program (where applicable)

5.6 Compensation Standards

93. The HZM[2004]No.17 is the details to be implemented in Xinzhan Zone corresponding to HMG No. 138 document. In this document, all the compensation standards

31

documented in HMG 138 are the same as those in HZM[2004] No.17. In addition, compensation on more detailed items of land attachment such as green houses is added. Furthermore, the details on resettlement have been stipulated including self-employment and employment as workers in (1) district construction project or enterprises, (2) community management and services positions, (3) collective organizations and (4) outside Hefei City (or Anhui Province) as organized workers to be employed. The rest contents in Annex 3 describes the concrete measures of farmers who lost land to join the basic social safeguard system voluntarily and buy basic old-age insurance as urban enterprise workers. It needs to mention that in Xinzhan Zone, each farmer has one copy of the document listed in Annex 3.

5.6.1 Principles

94. Lost property should be compensated based on the principle of replacement cost.

The property is compensated in line with the principal of resettlement. Compensation fees are paid before land acquisition.

Training and assistance and employment opportunities should be provided to the APs to maintain their living level.

The compensation for the crops, green seedlings, trees and attachments are paid according to market prices.

Management of construction should be strengthened to reduce the construction period and negative impacts.

Compensation funds for resettlement subsidies will be given to affected labor force with which they can continue the existing work after they get subsidies or they can develop individual business.

5.6.2 Methodology of Evaluation on Compensation Rates

95. Before discussing the compensation standards for land acquisition and resettlement, it is necessary to explain the methodology of how the compensation standards are formulated. To do this, a precondition is to introduce the background of three useful documents to be applied in this Project:

The Management Methods of Urban House Demolition of Hefei Municipality (effective, 2003);

Interim Methods for Acquisition of Collective-owned Land of Hefei Municipality (HMG [2003] 138, ) (called No. 138 document hereafter); and

The Standards of Compensation and Subsidies for Urban House Demolition of Hefei Municipality (HMG [2002] 195, effective, January1, 2003) (called No. 195 document hereafter).

96. Both HMG No.138 and HMG No. 195 documents were issued in December 2002 before the revision of PRC Land Administration Law in 2004. Up to date, the compensation rates for house demolition in No. 195 document has been updated in Approval on Basic Compensation Rate, Property Ownership Replacement Price Difference and Temporary Resettlement Subsidies of Hefei Urban Housing Demolition, issued by Hefei Municipal Government in March 2006, (Hemi [2006] No. 32). But the methodology for calculating compensation rates remains valid. The HMG No. 138 document is still valid although a new document HMG [2005] No. 10 was issued in 2005 following China State Council [2004] No. 28 document, there is no conflict between PRC State Council No. 28/No.31 documents and the

32

HMG 138 document. It is surprising that this document was originally drafted with such a practical long-term vision!3 5.6.2.1 The HMG No. 138 document and compensation for land 97. Due to various problems of low payments for land loss households that prevailed throughout China, HMG initiated the revision of compensation rates at the end of 2002. It seems that the calculation method in HMG No. 138 document is outdated for resettlement subsidies due to land loss. However, it is the classic method documented in the PRC Land Administration Law and it is still valid in Hefei City (as well as in the suburb areas of other cities in China) with transfer from an agricultural population to a non-agricultural population. The resettled number of agricultural population is calculated as: acquired land is divided by the per capita crop land area of the rural collective organization before the acquisition. Previous resettled persons would not be recalculated4. Since most of the per capita land area around the urban fringe is less than one mu, with compensation rates of CNY10,000 for agricultural population below 16 years old, and CNY30,000 for those at and over 16 years old, the resettlement subsidy is at least above 6 times AAOV for the young and 2 times higher for those at and above 16 years old. 98. Based on the HMG [2005] No.10 document, all the resettlement subsidies should be paid to the farmers who will lose land, and the land compensation fee due to land loss should be mainly used for the production and living purpose of APs who have lost land. Before land compensation and resettlement subsidies are disbursed, APs and their villages/CRCs should be closely consulted. In practice, many of the land compensation fees and resettlement subsidies are managed by the CRCs/villages since after land acquisition, the compensation is a necessary condition to maintain farmers’ living conditions but not adequate. Therefore, more people would like to leave the money managed by the CRCs but entitled in their own names, either by saving in a bank or joining an income earning program as a shareholder. To summarize, all the compensation money will be used based on the APs acceptance and supervised by their CRCs or villages. For this sub-component, the same model will be conformed to, that means the resettlement subsidy will be disbursed to APs, and the land compensation fee will be titled under the name of land loss households for the purpose of rehabilitate their production and living standards. 5.6.2.2 The Urban House Demolition and compensation for property 99. The Management Methods for Urban House Demolition of Hefei Municipality is an important by-law approved by Anhui Provincial People’s Congress in September 2002. This by-law regulated the detailed management methods for compensation both for building/houses on state-owned land and collective-owned land. The major points are summarized below. 100. Compensation for house/flat demolition can apply cash compensation or replacement. The Compensation is calculated according to a formula, namely:

3 It may not directly linked to this Project, but it is worth mentioning that some national policies were initiated from Anhui Province such as the famous “Household Land Contract System”, another example is the urban state-owned land reserve system originated in Hefei City. 4 If one household has 1.4 person(s) to be resettled due to land loss, one person must be resettled, and the 0.4 person equivalent share will be registered in CRC and the money will be utilized by the land loss household. At the time of the next land acquisition, only 0.4 persons will be added up for further consideration of resettlement.

33

Compensation Cost = (B+UxD)x(1-A)

Where, B = basic cash compensation price, i.e., region-specific compensation price,

determined by HMG relevant agencies such as Prices Bureau and Resettlement Administration based on the evaluation prices from real estate market.

U = unit cost per square meter of demolished building in specific structure D = status coefficient =(1- discount rate), based on years (the old house has a poor

quality) of a specific structure building, e.g., a house is 90% new means 10% discount used.

A = adjustment coefficient, e.g., the coefficients are 0, 2% and 3% for flat at (1) 3rd and 4th floors, (2) 2nd and 5th and (3) 1st and 6th floors respectively.

101. The above formula is just to show how the compensation costs are derived and does not necessarily relate to this Project since there are no buildings/houses higher than 2-stories that will be demolished. 102. For house/building on state-owned land to be demolished, the flat/house will be replaced at the same floor apace. For those on the collective land, the resettled area should be at the standard of 30m2 per person, with the additional provisions: (i) the resettled household can apply area increase from 15-30 m2 for each person by paying price difference about CNY200/m2 for the first 15m2 and a comprehensive construction costs at about CNY 900/m2 for the second 15m2 and (ii) for a household with a pregnant wife under the household planning program, one more person will be added to this household for housing replacement. 103. The basic compensation rates for house/building and detailed compensation rates for attachments and structures are listed in HMG Document No. 195 and updated in Hemi Document [2006] 32. 104. An example for calculation of the replacement cost based on the above formula is provided in Table 5-3. Assume a household has three members, with a house of 180 m2, and assume that the house has been used more than 21 years which means the discount rate is the highest about 20%. Now the average price for Xinzhan Zone is about CNY2,200/m2, but the resettlement community building only charges CNY1200/m2 (the housing land has been replaced without charge, no taxes and fees charged). It shows that under the poorest quality of the house, the compensation that APs will receive is still higher than that they should spend to obtain a same floor-space apartment. Table 5-3 Example Showing the Replacement Cost

Description Floor area (m2) Unit cost (CNY/m2)

Total Cost (CNY)

1. Compensation to APs (new house) 180 1000 180,000

2. If 20% discount exist for item 1 180000x(1-20%) 144,000 3. If 22% discount exist for item 1 180000x(1-22%) 140,400 4. Replaced area upon policy (this will be replaced with old house area)

90 (30 m2x3 persons)

1000 9000

5. First 15m2 required by APs 45(15 m2x3 persons) 200(1200-1000) 9000 6. Second 15 m2 required APs 45(15 m2x3 persons) 900 45,000 Sub-total 2-5 (APs’ Cost) 135,000

34

5.6.3 Applicable Compensation Standards

105. The comprehensive compensation price for land is appropriate which is in line with the article 12 of No. 28 document (see Section 5.3). According to HMG No.138 and HZM[2004]No.17documents, based on the location of the land in the in Hefei Municipality, the comprehensive compensation rates for land acquisition fee have been divided into 4 classes: CNY24000/mu for Class I land (within No. 1 Ring Road of Hefei City), CNY 21000 /mu for Class II land (basically between No. 1 and No.2 ring roads), CNY 18000/mu for Class III land (outside of No.2 Ring Road but within the urban zoning area), and CNY 15000/mu for Class IV land (three counties and outskirt of the city). Since Xinzhan Zone located in the area of Class III land, the compensation rates for land acquisition of this sub-component are as follows:

(1) Land compensation fee is CNY18,000/mu calculated on 15 times average annual output value (AAOV) of CNY1200/mu.

(2) Resettlement subsidy due to land acquisition is calculated for those agricultural population who require resettlement (lose all of his/her land share), based on the rate of CNY10,000/person for those under the age of 16, and CNY30,000/person at and over the age of 16.

(3) Compensation rates for standing crops are calculated based on the types of land: CNY 1,200/mu for specialized vegetable production base, and CNY1000 for general vegetable land, CNY900/mu for irrigated land and CNY700 /mu for dry land.

106. Table 5-4 listed the compensation rates for acquisition of collective-owned land, for land attachment and specific facilities. In addition, duties and taxes to be paid for the acquisition of collective-owned land have been fixed and included in the project budget. Table 5-4 Compensation rates for acquisition of collective land and attachments No. Item Unit Amount in

CNY I. Permanent Acquisition for Collective-owned Land 1 Land compensation fee CNY/mu 18,000 2 Resettlement Subsidy --below 16 years old CNY/person 10,000 3 Resettlement Subsidy –at or over 16 years old CNY/person 30,000 4 Compensation for standing crops CNY/mu 900-700

II Compensation for Land Attachments 1 Mature trees CNY/tree 75 2 Young Trees CNY/tree 25 3 Fruit Trees CNY/tree 75 4 Enclosure Wall CNY/m 50 5 Graves CNY/tome 300 6 Power Poles CNY/pole 200 7 Wells CNY/well 5000 8 Graveled Road CNY/m2 50 9 Concrete Road CNY/m2 100

107. Based on relevant laws, regulations and local conditions, the compensation for the houses relocation (see Table 5-5) is according to the rule of reconstruction of same floor area. Calculation shows: house reconstruction cost in the project area of Xinzhan Zone is CNY1000

35

/m2，and compensation for house attachment structures is set at a lump-sum base of CNY 5000 per household; moving allowance is CNY400 per household, and moving subsidy for processing enterprise is CNY 8 /m2▪month, totaling CNY144/ m2 for 18 months; provisional resettlement subsidy is CNY6/ m2▪month for each household based on the floor area of the demolished houses, totaling CNY108 / m2 for 18 months, and CNY5/ m2▪month for manufacturing enterprises, totaling CNY90 / m2 for the same period. Beyond 18 months, the standards for provisional resettlement subsidy will double. Table 5-5 Compensation rates for house/building demolition

Item Unit Amount (CNY) 1 Rate for house/building CNY/m2 1000 2 Attachments of a house/building CNY/household 5000 in average 3 Transitional resettlement--household CNY/ m2·month 6 (for 18 months) Transitional resettlement--business CNY/ m2·month 5 (for 18 months) 4 Moving allowance for affected

household CNY/Household 400

108. In order to mobilize the initiatives of District Government and its Resettlement Offices to do the resettlement, both for safety purpose and for successful resettlement, a management fee will be paid to these institutions at a rate of CNY5 /m2 respectively. 109. There will be no enterprise relocation thus no costs related to operational income loss and employment loss. 110. In case there are some released house/building to be demolished, the legal owners will be paid, and the renter will be relocated under the assistance of the owners.

5.6 Compensation Fund Flow and Timing

111. Compensation fees for land acquisition and resettlement will be paid by the IA. According to Article 52 of the Regulations on the Implementation of the Land Administration Law of the PRC, payment of various expenses for land requisition should be effected in full within 3 months starting from the date of approval of the land requisition and RP or three months after the signed agreement between the IA and the APs. Figure 5 showed the flow of compensation fund. The fund will be disbursed to APs one month before land acquisition and resettlement.

36

Figure 5 Flow of Compensation Fund

5.7 Eligibility and Compensation Entitlement

112. All APs and organizations (whether public or private) losing land, buildings/houses, crops or sources of income will be compensated or rehabilitated according to the types and amount of their losses (permanent or temporary) as long as they are included in the final Detailed Measurement Survey (DMS) to be concluded on or around the time of the approval of RP, or are identified as affected by temporary impacts during construction. 113. The cut-off date for compensation eligibility will be provisionally set as whenever the DMS is concluded. APs’ cultivating land, constructing buildings or settling in project affected areas after the cut-off date will not be eligible to compensation or subsidies. Compensation will also not be paid for any structures erected, or crops and trees planted purely for the purposes of gaining additional compensation. 114. The affected people will be compensated according to replacement cost for lost properties, without depreciation. The remaining materials after demolition could be salvaged by those affected people without any payment. Table 5-6 shows the Project compensation entitlements according to compensation principles. 115. For the vulnerable groups, the compensation for their land and properties should be fully paid in time. In addition, non-cash assistance will be provided by the Project during their relocation. During the income rehabilitation period, local government and CRCs will screen these vulnerable groups and treat them properly. For example, those who are workable can engage in development activities, but for those widows or widowers or disabled people without development capabilities, must be included in the local social safeguard programs.

Hefei People’s Government Hefei Finance Bureau, Project Management Office

HXSAOC and XCB （Resettlement Agency）

Government. Agencies

for Taxes & fees

Qilitang Sub-district （Resettlement Office）

APs Land owners

CRC CRC

37

Table 5-6 Compensation Entitlement Matrix

Item Application Definition of Entitled person Compensation policy Implementation issues

Permanent loss of land

land located in the right-of-way (ROW) 2136.8 mu

a) 3 Villages/ CRCs b) Farmers who use the land c. 2837 APs c. 976 households

Land compensation CNY 18,000 per mu and resettlement subsidies based on the agricultural population to be resettled: CNY 10,000 per capita for those below 16 years old, and CNY30,000 for those at and above 16 years old. All the resettlement subsidy and 70% land compensation fee will be paid to APs through CRCs but 30% land compensation fee will retained in the village account but titled under the names of land loss households for the purpose of rehabilitating their living standards. While Income restoration measures should meet the approval of the APs Cash compensation for any trees (based on Document No.195) and standing Crops (based on Document No. 138/ HZM No. 17)

CRC meetings to be responsible for deciding on the utilization of funds, and investment in income generating activities such as small business development/ training, and recommendations/ assistance for transfer to urban status. Higher level authorities to approve and monitor community level development proposals and, if required to facilitate urban transfers and training programs

Loss of building/ houses

Residential land located in or affected by the ROW

a) Owner of the building or houses b) renters c. 1928 APs c. 651 households

-All affected APs will be provided with replacement housing in planned new communities.

District and sub-district to allocate new apartments for urban transfers (both non-agricultural households and those agricultural households to be converted to non-agricultural status).

Loss of structures

House/building related structures, indoor decoration facilities

Owners of house/building to be lost

Paid in cash based on HMG 195 document, averagely CNY5000 per household

Based on face-to-face measurement and negotiation

Loss of land attachments

Facilities attached to land (wells, graves, roads, power lines)

Owners of the attachments

Cash compensation relocation of power transmission poles by respective agency, graves to be relocated or treated by owners, rebuilding road if necessary (not applicable for this component)

Announcement should be made for tomb relocation in the newspaper of Hefei Evening Paper at least one month before land acquisition

Transfer from rural to urban status

All APs All APs The transfer is part of the Master Plan of Xinzhan Zone (2004-2020), thus all affected APs are eligible for the transfer of status.

Xinzhan Government, Sub-district and CRCs will processing the procedures for APs

38

VI. RELOCATION OF HOUSING AND SETTLEMENT

6.1 Resettlement Targets

116. The concrete resettlement targets for the Project are set as follows: Optimize the project design, by avoiding dense population/high buildings and

minimizing the scope of impacts on involuntary resettlement. The resettlement of APs will be considered as a component of the project and

sufficient funds will be available to the resettlement and affected people will get benefits.

Assistance will be provided to the resettlers during the process of removal and resettlement.

Resettlers will merge into the new community socially and economically. APs will be encouraged to take part in the preparation and implementation of

the RP. Their opinions should be fully respected in the RP. The productivity and living standards of the APs will be rehabilitated up to the

level before the project implementation.

6.2 Resettlement Options

117. Demolished houses will be built at the cost of reconstruction and evaluated by a real estate evaluating agency. The cash compensation for houses/apartment to be demolished should be defined considering the location, structure, floor areas, number of stories, decoration based on the base price of cash compensation defined by the government when the demolition license is issued. 118. Basically, Xinzhan Zone has decided to build a new community for those resettled as they have rich experience. In addition, three options are open to affected people after cash compensation: these are:(i) Purchasing a new residential house/apartment at the real estate markets, (ii) Purchasing an “economic and practical apartment” 5 provided by the government,(or a second hand house/apartment), and (iii) Renting a subsidized (with a cheap rental) house/apartment provided by the government.

5 Jing Ji Shi Yong Fang in Chinese, is a government funded program to provide housing for those with low income in China. The apartment usually is not as large as those sold in the real estate market, but it is most practical and affordable by low income households.

39

6.3 Household Relocation and Resettlement Plan

119. Based on the current available and feasible plans, the Project IA formulated the “concentrated resettlement” plan – build a new urban community for each CRC near their original locality, usually less than 1km away. The resettled persons are still in the jurisdiction of their original CRCs without changing to a new social-cultural environment. Thus far, Xinzhan Zone has established several resettlement communities of such kind, which are very much appreciated by resettlers. The most important is that the new communities for the three CRCs to be affected by the project have also been selected together by XCB, IA , CRC leaders and APs (see the resettlement community map in Figure 2 of Chapter 2). 120. The advantage of this measure is that government replace farmers’ demolished houses with a newly built apartment. The compensation at CNY1000/m2 for housing will be partly used (according to the policy stipulated area of per capita housing 30m2/person) by HXSAOC and XCB for the construction of resettlement residence building for each CRC, and during this process a large part of the money will be prepaid by Xinzhan Government since the community will be build at one time so that various social services can be provided simultaneously. It means that compensation for the area of 30 m2 per person in a specific household with house demolition will not be paid directly to APs, but compensation fund for the remaining floor area do will be paid in time to them. This approach is not directly build a replacement house for APs since it is not feasible, but seems like buy a new apartment at affordable price which is based on the replacement cost specially designed for APs as explained in Section V. 121. This resettlement mechanism needs to calculate several prices as explained in Table 5-3, i.e., the compensation rate for demolished building/houses, the pure construction cost CNY 900/m2, without any surcharge on land and related fees and taxes (compared with buying apartment from real estate market), and the real replacement cost CNY1200/m2 which included part of the fees/taxes for processing housing certificate for each AP. Given the current housing price about CNY2200/m2 in the real estate market, none of the APs would like to choose any other resettlement options. 122. With this resettlement approach, APs have to find a transitional housing for 18 months; however, with a high transitional allowance paid to them (which will be doubled after 18 months if APs have not moved into the new apartment), all APs accept this approach since rent a house is not difficult and some of them have another separate house. Having provided such resettlement plan, APs will not meet the compatibility problem with the other community. Thus resettlement is not foreseen to be difficult to implement.

40

6.4 Special Concerns

123. The RP household survey showed that many men work outside as migrant labor, with long times away from home. Women play a very active role in the economy of the project area as well as being responsible for many household tasks. The future welfare of women affected by loss of land and/or property is important and well understood in the compensation and other measures adopted in this RP. Women will be eligible, on an equal basis, for all compensation payments, training programs and other assistance being proposed. In order to protect the APs properties, the apartment purchased in the purpose for resettlement belongs to both wife and husband of a household, thus both wife and husband’s names should be written on the property certificate of the apartment. In order to ensure this, WF at Sub-district and CRC levels have agreed with IA that they will closely involved in the resettlement process. 124. Vulnerable groups should be treated carefully. As there is already some households under the social safeguard program like LSSL for the urban citizens, if more people are found such as disabled, the old and women headed households, the local Civil Affaires Bureaus should take the responsibility to incorporate these household into the social safeguard program. During the relocation stage, project IA and local government will provide non-cash assistance for the vulnerable groups in the following aspect:

for the elderly or disabled, priority should be provided for them during the selection of the location/floor of the resettlement apartment;

provide labor and transportation assistance without charge for the vulnerable groups. 125. Special attention should be paid to grave relocation, which will be undertaken according to Hefei Funeral and Interment Management Methods (HMG decree [2005] No. 93). In fact there is a public cemetery in each district/zone, sited in good Fengshui area. The grave relocation will be carefully treated by HMG and the information will be disclosed on Hefei Evening Paper at least one month before relocation in order to inform the close family members of the APs. Relocation allowance will be provided by the project, but the relocation must be done by the resettles themselves so that to show that the dead had their own-offspring. During this process, local resettlement agency and civil affairs bureau will provide guidance on the location of new graves or ceremonial affaires. Opposite to the grove relocation, for safety purpose, the demolition of old houses in urban area should not be demolished by APs although the salvaged materials like doors and windows can be treated by them. The demolition should be conducted by professional enterprises.

6.5 Preferential Policy

126. During the resettlement process in Xinzhan Zone, there are some prevailing stimulation measures and preferential policy adopted, which will also be applied in this project. 127. Award for the early resettlement. Once the new resettlement building

41

completed (within18 months), the first three households who move into the new resettlement building, will have the priority to choose the location/floor of an apartment. Many of the APs would like to receive the transitional allowance and do not want to move into the resettlement community earlier, but this measure can stimulate APs to move into the new resettlement apartment earlier. 128. Family planning preferential policy. For a spouse with agricultural status (both of them) and only have one child, according to local family planning preferential policy in Xinzhan Zone, during the process of status conversion from agricultural to non-agricultural caused by land acquisition, they can apply for the preferential policy as follows:

If their child is below 16 years old, they can receive CNY 10,000 bonus, and if the child is at or above 16 years old, the bonus will be CNY 12,000. The bonus usually paid in kind, and deducted from the housing cost when they buy the replaced apartment.

The household can apply for buying an extra 30m2 area of their apartment at the construction cost of CNY900/ m2 in addition to the policy stipulated floor area (i.e., for a common household can buy the apartment with an floor area of 180 m2, but this household can buy 210 m2 at subsidized prices)

42

VII. INCOME REHABILITATION

7.1 Context

129. The overall objective of income restoration is to ensure that all APs losing their means of livelihood (in this case their land or working venue) to the project are able to at least maintain their pre-project levels of income and living standards. 130. The construction of the Xinzhan Road and Sustainable Traffic Management Component will result in 976 households losing at least some or all of their land, and hence part of their income. The results of the RP household survey indicate that, although only 19.9% of household income derived from agriculture in the farming households. The loss of land will not only affect the livelihood, but also affect the future employment of many agricultural households. For those non-agrarian households (non-agricultural households or agricultural households discarded all their land), no longer rely on farmland for their livelihoods; thus land acquisition has minor impact on their livelihood. 131. The compensation rates agreed for this project provide that land compensation fee CNY21000/mu will be paid directly to the affected CRCs/villages, and resettlement subsidies will be paid to APs via affected CRCs/villages. The compensation for the standing crops and ground attached properties would be directly paid to the affected farmers. 132. Current laws and regulations provide a substantial amount of flexibility as to how CRCs use the land compensation fee, with the condition that, directly or indirectly, it benefits the affected farmers. Input from consultation with APs has provided a base for formulation the income rehabilitation strategy, and further public consultation and participation are need during the income rehabilitation process. Subject to ratification by the sub-district governments, properly constituted meetings of the members or representatives of the CRCs will decide how to use the compensation fund received from land acquisition.

7.2 Formulation of Income Rehabilitation Strategy

133. Any income restoration strategy should respect, as far as possible, the preferences of APs as to how this should be achieved. Table 7-1 presents the preference of APs on livelihood/income rehabilitation after land acquisition and resettlement. The question of “if you loss 10% or more of your land, how will you rehabilitate your livelihood and income?” was interviewed with all respondent who have land in their households, and overall 111 respondents answered this question. The option of doing a small business had 53 responses, nearly 47% people mentioned it, and this was ranked first. The ‘others’ item mainly mentioned as to find employment by themselves or to work as a migrant labor, ranked second, then 18% mentioned to open a shop in Xinzhan Zone, and similar responses were given to the item of

43

“buying insurance”, only 6.3% of the answers addressed intensive agriculture. 134. It is found that the answers have a high correlation with the occupational background. Those who mentioned to choose to operate a business are mainly those who are engaged in farming, and those who mentioned buying insurance are mostly workers—with agricultural status and have not been incorporate into formal social security network. For those existing migrant labors, they almost still choose to do migrant labor work. Table 7-1 Preference of APs income rehabilitation Item Operate

business Buy

insuranceIntensive

agriculture Open a shop

Others (employment, Migrant labor)

# of mentions 52 19 7 20 26 % 46.8% 17.1% 6.3% 18% 23.4% 135. Based on the above findings, the income restoration strategy will be flexible, democratically-based, and self-administered in accordance with the decisions of individual CRCs. The strategy will have the following main elements: (i) Use of land resettlement subsidy, (ii) Investment by the community, (iii) Investment by individual APs, (iv) Training for employment, and (v) Employment on project-related activities. Specific plans are presented In the next section

7.3 Income Rehabilitation Plan

7.3.1 Social Safeguards

136. PRC. State Council No. 31 decree stresses that farmer’s social safeguard should be ensured after their land loss, which has been moved in advance in Hefei Municipality and Xinzhan Zone (as documented in Annex 3). The land losers— male of 16-45 years old and female of 16-40 years old can apply for endowment insurance when their status conversion processed, and all the procedures for the insurance can be completed within 60 days since the status conversion completed. This has provided a basis security for the land loser when they become old. The amount for the endowment insurance is about CNY18000. The social economic survey showed that around 17% wanted to buy insurance, however, a consultation meeting held by IA with leaders of three affected CRCs on October 28 showed that 80% of APs will buy the insurance. The remaining 20% APs are either has insurance in their working enterprises or already bought by their relatives.

7.3.2 Plans on Use of Compensation Fund by Collectives

137. According to the HMG [2005] No.10 document, the land compensation fee will be mainly used for the production and living purposes of the land loss farmers. Xinzhan

44

Government decided retain 30% at CRC level but titled under the APs names, and other 70% will directly pay to APs. In terms of the money CRC retained, it is not a big amount, but it does provide a supplementary measure for APs income rehabilitation. Currently, each village has a collective-operated construction and decoration company; APs who will invest this amount of money into the company, and get dividend yearly at the interest rate of 10-12% per year. 138. The most important measure for CRC development is to co-organize employment training organized and funded by Xinzhan Government. The government training is focused on the recruitment of enterprises entered into Xinzhan Zone. Currently, some large-scale enterprises have been establish their production base in Xinzhan, for example, Lekai Film, with a land area of 1000 mu, and others like Blue Sky Furniture Company, Ou-Li Electronic Appliance, and Tan-Fa Tech, are all located in the Huaihe Community. The Ou-Li Company with a land area of 234 mu, and with an annual total output value of CNY200million, can absorb workers about 4,000 persons. It is estimated by Xinzhan Government that the demand for workers originated from the enterprises in Xinzhan Zone is greater than the total farmers in the same zone. Thus more workers should be recruited from outside of Xinzhan Zone. Given the great working opportunity, more training will be organized by Xinzhan Government rather than CRCs. The salary for a worker is about CNY500/month, it will be CNY6500/year (one month bonus plus) per year. 139. Besides the above ongoing income rehabilitation measures (as document is State Council No. 31), each CRC has their own income rehabilitation plans. The compensation funds for non-farming land acquisition belong to the affected communities that will be used for public utilities and income rehabilitation of APs. 1) Income Rehabilitation and Development Plan of Zhangwa Community 140. In combination of the Xinzhan Master Plan, Zhangwa Village has formulated a package of development plans, these are outlines as follows:

Built a information exchange center at CRC, to collect and exchange business information with outside. This can be run by a women staff at CRC and provide services for those who would like to search information on businesses.

Relying on the Xinzhan Mushroom Colony (Seed) Factory located in Zhangwa, to establish a mushroom production base; which at the start stage can provide employment for 20 people

Further conduct agricultural manufacturing—grain, oil processing. The equipment will be upgraded and a business chain can be established from grain/oil seeds collection, and flour, food processing, and oil marketing. This is foreseen as the most localized business as they have operated for many years.

Establish a plastic processing factory, particularly the high-density polyethylene (HDPE) pipes used in the construction industry, with a big demand.

Establish a waste recycling station, with the development of the Xinzhan Logistic Park, there must have a large volume of packaging materials and other solid waste which can be recycled. This proposal has been considered although it more focused on the long-run.

45

2) Income Rehabilitation and Development Plan of Huaihe Community 141. Huaihe Community up to date has planned to focus on the following in terms of rehabilitating farmer’s income after land acquisition and resettlement.

Provide qualified workers for the enterprises, which is the most essential plan in the long-run. This not only can restore farmers’ income level within one year, but also make the farmers more civilized through enterprise cultural education.

Extend the product chains of enterprises such as services provided pro- and post- production, such as product storage, transportation services.

Provide catering services for enterprise workers, currently planned a standardized restaurant for providing box-contain lunch.

Establish a furniture retail mall with respect to the Blue-Sky Furniture. 3) Income Rehabilitation and Development Plan of Huaifei Community 142. Comparing with Zhangwa and Huaihe Communities, Huaifei Community will only lose around 4% of their cultivated land; it is the only community focusing on agriculture. However, there is a lake (Caochong Reservoir, see Figure 2) within the jurisdiction of this community in the north, and this Project sub-component has planned to establish a recreation park, which is the reason for the construction of Huanyuan Roads (No.1-5). Thus eco-tourism-agriculture is the main topic for the income restoration plans. These are outlined as follows:

Improvement of irrigation facilities and their extension to currently non-irrigated areas. Under this plan, a series of mini-irrigation facilities will be installed,

The development of a minimized horticultural resort. Around the Caochong Reservoir, the following zoning areas will be established: orchards, miniature garden, flower garden, butterfly garden, and Chinese herbal medicine garden, etc,.

The development of water recreation facilities, fishing, and fish raising facilities, Development of catering services.

143. As currently all the three affected CRCs are different from previous villages, which reflected from the leadership that the CRC leaders are full salary government staff without any charge from collectives, therefore, their function is to plan, organize and manage economic development of their communities. The above mentioned community development plans will be further discussed and approved by APs. In addition, Information should be provided to the APs about the local investment environment. 144. The above plans (as well as the below section on training) are viable since some of them are undergoing, thus the related plans described here are feasible. If after the urbanization process of the CRC is complete, but the land still be used for the recreation purpose regardless it is collective or state-owned land. In case there is no ADB project, other project from government fund will achieve the same goal as described in the Xinzhan Master Plan (2004-2020).

46

7.3.3 Use of Compensation Fund by Individuals

145. Based on HMG 138 document, the resettlement subsidy due to land loss for a person at or over 16 years old will be CNY30,000, of which, CNY12,000 is for the subsidy of finding a new job, and CNY18,000 will be used as his basic livelihood safeguard included in the HMG social safeguard net6. It means that except 30% of the land compensation fee of the CNY 18000 (CNY18000x30%=CNY5400) will be retained in the CRC and will be used as described in Section 7.3.2, all remaining funds will be made available to the APs for income rehabilitation, which will be outlined as follows. 146. The arrangement in 7.3.1 has solved the problem of social security worries of some APs, and arrangement in 7.3.2 has provide an investment option for APs and all based on the voluntary base according to discussions and consultations with APs. But the payment of a substantial portion of compensation funds to individuals will place a considerable responsibility for income restoration on APs themselves. The retailing and service sectors in the project area have expanded rapidly in recent years due largely to the initiatives of private individuals and there is every likelihood that funds will be devoted to productive activities as well as purchasing new house/apartments for renting. Additionally, some households are likely to use funds to provide their offspring with a better education indicating a more far-sighted view of the future wellbeing of their household. 147. Around 65% APs have clearly stated that they will start a new business or open a shop after land acquisition, thus the compensation fund can help them. Based on the survey, however, only 1.7% labor responded that they engaged in business, thus many of them do not have the experience on running a business. It is suggested by CRCs that they can start to learn to operate a business/shop, starting with lower investment as CNY500, or CNY2000. At this start point, even the business get lost, the only investment would be CNY500-2000. The most practice way is to participate in Xinzhan Government training, or the CRC organized activities, through learning by doing and acquire experiences for business.

7.3.4 Technical Training for APs

148. Notwithstanding the fact that affected communities and APs will be primarily responsible for income restoration, an extensive series of training programs will be implemented. The programs were originated from the responses of the social economic survey, and have been determined after discussion with APs and other stakeholders such as Social Safeguard Center, WF of Xinzhan Zone as these two organization have more experience on implement the 40-50 program –a government organized training program for those aged labor or workers in Hefei Municipality. The plans will be devised on the basis of individual CRC (every CRC has different needs) based on local demands and will consider the AP preferences in addition to skill and capabilities. These programs, for which a separate budget

6 Any resettled person due to land loss can withdraw CNY 100 per month after 60 years old for male and 55 years old for female. If the CNY 18000 has not been used, it can be inherited by their off-springs of the resettled person. On the other hand, the CNY 100 per month can last for the rest of their life span.

47

item of CNY 100,000 has been allocated. The training will be available to all APs and will include some or all of the following subjects:

Animal husbandry (focusing on rare bird raising—for the eco-agricultural park) Horticultural technology Training program to women on sewing and knitting skills (a garment base will be

established in nearby Yaohai Industrial Park), hairdressing skills (focusing Huaifei Community)

Skills on motorcycle, vehicle, tractor and farm machinery repair (focusing on Zhangwa Community)

Repair and maintenance of electrical goods (Huaihe Community) Car decoration, car washing store management (Zhangwa Community) Cooking and catering services (Huaifei and Huaihe Community) Product marketing (for all APs) Small business registration and operation. (for all APs) and (A newly added by WF) Training on domestic helpers.

149. Considering that many of the laborers of affected households are regular workers or other jobs who do not need skill training, it is planned that the skill training mainly focused on those agricultural labors particularly women. To date, 200 APs has been planned as trainees to receive the training, with over 50% of trainees are women. Since the training courses were preliminary designed for those farmers of 35 years above (mostly responded from them), however, if the trainees are more than 200, in case the fund is not sufficient, the Xinzhan Government agreed to support the training through government fund, and will provide coordination among different government sectors. Currently the Xinzhan Social Security Center is entrusted to organize the training, and the Xinzhan WF will be the co-organizer. 150. The skill training courses will be offered both on site and by the training centers in County/District and township centers as soon as all compensation has been paid. Payments will be made directly disbursed to the organizers of the training.

7.3.5 Project Related Income-generating Opportunities

151. During the project construction stage, APs can seek some income-generating opportunities—mainly providing services related to construction. For instance, APs can provide spare houses (if available) for construction contractors as temporary office or as residence of construction workers, operate grocery kiosks and provide food, cigarette and beer/spirits for the construction teams. That can provide temporary employment for certain APs of land loss as well as increase household cash income. For the road construction work, IA committed that a term of condition in the contract will be that local APs will have the priority to participate into the construction.

7.4 Gender Issue during the Process of Resettlement

152. According to the Section on “women and economy” documented in Women’s

48

Development Compendium of Hefei Municipality (2001-2010), it clearly stated that “women’s right of work should be protected”, and “it should be assured that women share the equal right with men on economic resources” Thus, women have equal entitlement with men in employment and training. As land is getting less and less during the process of urbanization, women are becoming the major labor force in farming. As a result, strengthening on training to women is absolutely necessary as stated in 7.3.4. 153. This is a serious concern since middle-aged women have greater difficulty making the transition from rural to urban living. Income support is not a sustainable solution. Thus relevant measures should be adopted. Currently the WF of Hefei Municipality has operated at least three programs—“sunshine training program”, “40-50 employment training program” and “micro-credit program”, many women workers laid out from previous enterprise has find jobs. IAs and the WF at Sub-district and CRC levels has reach the agreement that The WF will involved in conduct consultation and public participation and income rehabilitation process in combination with their ongoing programs so that women APs can earn a sustainable livelihood after land acquisition.

7.6 Assistance to the Vulnerable Households

154. The vulnerable households will go into two main categories: indigent households prior to the construction of the project component (few in number) and those households losing a large proportion of their land but without the labor resources or technical expertise necessary to re-establish themselves. Currently there are two ways for the income rehabilitation—(1) promotion of working skills and (2) provide social safeguard measures. 155. In order to ensure that the living standards of these households are maintained after resettlement, the PMO and local District government will mobilize related government agencies to participate in the resettlement, such as Civil Affairs Bureau, Labor and Social Safeguard Bureau and Agricultural Bureau, in order to provide timely assistance for those needed. 156. Members of vulnerable households will benefit from the proposed training programs and, if able-bodied, will be given priority in gaining project related employment or get a permanent job in the enterprises located in Xinzhan Zone. 157. In addition, certain vulnerable groups (e.g. widows, the disabled and the mentally ill) may be resettled by local Civil Affairs Bureau with Wu bao hu status and LSSL program if the APs agree. The LAB or the IA will pay the total land compensation fee and resettlement subsidies to the Bureau of Civil Affairs, who will then be responsible for these persons livelihood rehabilitation. The Wu Bao Bu system is established for the rural area in China, when the widower at old age (usually male 60 years old and female 50 years old) or an orphan will be supported by government through providing food, clothes, shelter, education and burial. Now the Least Subsistence Safeguard Line program is provided for the urban poor. The LSSL line will be designated by local government based on the living standard in a specific city, e.g.,

49

the LSSL in Hefei is CNY230/month, if the per capita income of a household cannot reach that level, say, only CNY150/month, then government will provide the difference of CNY80/month per person for the household. All the vulnerable groups are eligible for these schemes. The income rehabilitation should be combined together with their relocation (see Section 6.4).

50

VIII. BUDGET ON COMPENSATION AND RESETTLEMENT

158. The total investment of the project component is CNY 699.4740 million, and the resettlement cost totals CNY282.5512 million, accounted for 40% of overall investment costs (see Table 8-1).

8.1 Contents of Resettlement Cost

8.1.1 Land acquisition and resettlement

159. Permanent land acquisition: This project needs permanent acquisition of 2136.77 mu land, including 1404.77 mu cultivated land. According to the HMG document No.138, land compensation is calculated at CNY18000 /mu, totaling CNY38.4619 million; resettlement subsidy for the APs aged at or over 16 totaling 2232 persons, calculated at CNY30000 per person, and for the affected below 16 is CNY10000 per person, totaling CNY73.01 million, compensation for ground attachments is CNY4.1970 million and for young crops CNY983300. The cost is CNY116.6522 million in total.

160. Resettlement cost: This project needs removing houses of 66,496 m2, affecting 976 households (use the large figure for budget calculation). The moving cost is calculated at CNY400 for each household, totaling CNY390400. Compensation for house attachment is CNY5000 for each household, totaling CNY4.88 million. Provisional transition resettlement cost is CNY 4.7877 million. Another cost at CNY5 / m2 totaling CNY665,000 will be granted to the RO and the Xinzhan Administrative Committee respectively. The above cost is CNY10.7231 million in total. The basic cost for resettlement house is calculated at CNY1,000 /m2, totaling CNY66.496 million. The cost for house demolition and resettlement is CNY 69.2396 million in total.

8.1.2 Infrastructures

161. Infrastructure compensation covers 3 items, which are 24 wire poles of CNY200 for each, 47 water wells CNY5000 for each and 4500m2 of gravel road to be restored at CNY50 / m2, totaling CNY464800.

8.1.3 Other costs

162. Monitoring and evaluation cost is calculated at 1% of the basic cost for land acquisition and resettlement; managerial cost is calculated at 1% of the basic cost; external monitoring and evaluation cost is calculated based on 0.5%; training cost is about CNY100000

51

for holding four times of training classes; management cost for relevant government agencies to assist the income rehabilitation of vulnerable groups is set at CNY139800. These costs total CNY5.09 million.

8.1.4 Relevant taxes and fees

163. Relevant taxes incurred mainly by permanent land acquisition include cultivated land reclamation fee, fees paid for utilization of new construction land, cultivated land tie-up tax, and managerial cost, totaling CNY64.06million.

7.1.5 Contingency

164. Contingency cost is calculated as 10% of the basic cost for land acquisition and resettlement

7.2 Financing and Disbursement Plan

165. The budget for land acquisition and resettlement of will be financed by Hefei Finance Bureau. According to the progress of the project, the flow of funds will be 50%, 30% and 20% of the resettlement budget used in 2007, 2008 and 2009 respectively. In this project component, all the resettlement cost will be covered by HMG. The PMO will be responsible for the fund disbursement. Firstly the fund will be allocated by Hefei Finance Bureau at the start of a fiscal year, based on the yearly fund using plan submitted by IA, and upon the request of fund disbursement from IA according to the progress of resettlement and land acquisition, will be disbursed to IA, then IA will disburse the fund to relevant agencies and APs as described in Figure 5..

52

Table 8-1 Resettlement Budget

Type Quantity (no)

Unit Unit Cost (CNY)

Cost（CNY 10000）

A. Basic Cost 19400.36 I. Land acquisition 11711.70 1. Permanent land acquisition 11245.52 1.1 Land compensation fee 2136.77 mu 18000 3846.19 1.2 Resettlement subsidies < 16 years old

605 person 10000 605.00

1.3 Resettlement subsidies ≥16 years old

2232 person 30000 6696.00

1.4Yong crops 1404.77 mu 700 98.33 2. Ground attachments 419.71 2.1 Mature tree 20050 tree 75 150.38 2.2 Sapling 17730 tree 25 44.33 2.3 Fruit tree 19459 tree 75 145.94 2.4 Enclosed wall 4544.5 m 50 22.72 2.5 Graves 1878 unit 300 56.34 3. Infrastructure 46.48 3.1 Electric wire pole 24 pole 200 0.48 3.2 Water wells 47 well 5000 23.50 3.3 Sandstone road 4500 m2 50 22.50 II. Relocation and resettlement 7688.66 1. Demolition of houses 66496 m2 1000 6649.60 2. House attachments 976 household 5000 488.00 3. Relocation fee 976 household 400 39.04 4. Transitional housing allowance 66496 m3 72 478.77 5. Expense to pay for resettlement office and district government

66496 m2 5 33.25

B. Cost for RP Implementation 508.99 1. Monitoring and evaluation (including facilities, RP reports)

1% of the basic cost 194.00

2. Management fee (including staff training)

1% of the basic cost 194.00

3. Skill training for APs Based on 4 times 10.004. External monitor 0.5% of the basic cost 97.005. Management cost for income rehabilitation of APs/1

13.98

C. Taxes and Fees 6405.73 1. Cultivated land reclaiming cost 1404.77 mu 6000 842.86 2. Compensation fee for newly added construction land

2136.77 mu 21300 4551.32

3. Cultivated land occupation tax 1404.77 mu 6000 842.86 4. Land acquisition mapping/ management cost

2136.77 1.5% of permanent land acquisition fee

168.68

Subtotal (A+B+C) 26315.08 D. Contingencies 10% of basic cost 1940.04 TOTAL (A+B+C+D) 28255.12

/1Remark: the budget will be paid to relevant government agencies for them to manage the income rehabilitation of APs.

53

IX. INSTITUTIONAL FRAMEWORK

9.1 Project Resettlement Organizational Set-up

166. The project leading group is established within the HMG with the PMO as the secretariat communicating with the other stakeholders. As previously mentioned, HXSAOC - XCB is the project Implementation Agency (IA). Under the IA, there is a resettlement agency, responsible for land acquisition and resettlement. The organizational structure is shown in Figure 6.

Figure 6 Resettlement Organization Structure 167. The IA will play a key role during the resettlement process; however, besides the IA, there are other related institutions who will be unavoidably involved in the resettlement tasks. All these institutions and the staffing are presented in Table 9-1.

General Affairs Department

PMO, LAB, Administrative Committee of Xinzhan Zone

Engineering Department

Resettlement Agency

Planning and Finance

Department

HXSAOC - XCB, the IA

Qilitang Resettlement Agency

Affected CRCs (3 person)

External Monitoring A

gency

54

Table 9-1 Resettlement Institutions involved and Staffing

Institutions Staffing Hefei Project Management Office (PMO) 1 male, experienced Hefei Municipal Land Administration Bureau 1male, experienced Hefei Municipal Spatial Planning Bureau 1female, experienced The Administrative Committee of Xinzhan Zone 1male, experienced HXSAOC -XCB /Resettlement Agency 1male, experienced

CRCs 2 male, 1 female

leaders Legal consulting agency 1 female, lawyer Hefei Municipal Design Institute (DI) 1 female, engineer External Monitoring Agency 1

9.2 Responsibilities

168. Table 9-2 lists responsibilities of each agency in resettlement. Table 9-2 Responsibilities of Agencies

Agencies Responsibilities

Preparing the RP and organizing the implementation of the RP Supervising the resettlement fund usage Coordinating and supervising the resettlement activities and progress Coordinating monitoring and evaluation/supervision activities, including contracting an external monitor for the overall Project Submitting progress report to the ADB

Hefei Project Executive Agency (PMO)

Coordinating and dealing with conflicts and problems during project implementation Engaging a consulting institution to assess the impact of the project Organizing social-economic surveys Applying for "the permission of land use " from Hefei Municipal Spatial Planning Bureau and the Land Administration Bureau Applying for "House Demolition Permission" Managing the displacement of facilities in the city Scheduling the RP implementation Entrusting the Hefei Municipal Land Administration Bureau, Demolition and Resettlement Administration Office to contract land acquisition and displacement and pay resettlement funds in accordance with the agreement

XCB

Conducting monitoring and evaluation Carrying out the related laws and regulations relating to the management of construction land use Participating in the review of the compensation rates and resettlement schemes

Hefei Land Administration Bureau Dealing with the formalities of land acquisition

55

Agencies Responsibilities

Participating in the social-economic surveys Participating in the preparation of the RP and reviewing the RP Issuing permission of land used for construction Directing, coordinating and supervising land acquisition and resettlement activitiesCoordinating and dealing with the conflicts and problems in the process of land acquisition and allocation Registering land acquisition and making announcements Organizing public participation and public hearings, if required Proceeding with resettlement and compensation disbursement Finalizing the Right of River alignment of land acquired (blue line) Hefei Municipal

Spatial Planning Bureau Issuing the permission of land use based on spatial planning

Reviewing and approving the compensation plan for displacement and resettlement and making announcement of issuance of House Demolition Permission Registering and managing the house displacement files Managing information about resettlement

Hefei Municipal Demolition Resettlement Administration Office

Mediating in and arbitrating disputes in the process of house displacement Assisting in social economic survey Assisting in the preparation of resettlement options and the RP Supervising CRCs/village committees on resettlement and the income restoration of APs.

District Government

Reporting to the higher level institutions about the comments and suggestions of affected people Participating in the social economic survey Participating in the preparation of the RP and resettlement scheme Assisting in the public consultation and conducting propaganda of displacement policies Consulting on allocation of land compensation fee and payment of resettlement Organizing income-generating activities after land acquisition and restoring the income of the APs. Reporting to higher level authorities about the grievances and suggestions of the affected people.

CRCs/ Villager committees /women’s federation

Providing assistance to the households with special difficulties Minimizing resettlement impacts through optimized design schemes Proposing/Finalizing the impact scope of land acquisition and demolition Assisting EA/IA in RP preparation

Consulting and designing agencies Providing technical service in the aspects of collection and processing of

information and data Providing technical assistance in land acquisition and resettlement External

monitoring agency

Working as independent monitoring agency, supervising the implementation of the RP, and reporting to the EA and the ADB

9.3 Institutional Capacity Strengthening

56

8.3.1 Assessment of Institutional Capacity

169. Logistics and hardware. Currently there is a resettlement section under HXSAOC - XCB, which has some computers. There is probably need for further hardware facilities in the IA. 170. Finance. It is foreseen that IA can conduct the resettlement tasks more efficiently after the project FSR has been approved and budget has been allocated. During the PPTA stage, all budget spent were pre-paid by IA as well as EA. The lack of financial resource during project preparation stage has definitely hindered the institutional set-up and the preparation progress (including FSR and RP preparation) irrespective of the staff’s capabilities. The RP has considered this issue and adequate management fund for RP implementation has been earmarked in the resettlement budget. 171. Staff capabilities. During the PPTA stage, the consultants found that many government officials are rich experienced in dealing with land acquisition and resettlement issues. However, almost nobody has resettlement experience of working in ADB funded project, and none of them has attended training on ADB involuntary resettlement policies before the Project. Therefore, a systematic training on Involuntary Resettlement is due necessary.

8.3.2 Institutional Capacity Building

172. The ADB will provide support to train staff on resettlement procedures. A part of the ADB loan for implementation will be provided for institutional capacity building through specific training courses and by on the job training with the appointed external monitoring consultants (see Annex 2) 8.3.2.1 Training for resettlement staff 173. The PMO will support training to the staff involved in the resettlement tasks in terms of ADB’s policies on involuntary resettlement, rationale and requirements in order to promote the staff’s capability and working efficiency. Based on the real situation, the requirements are as follows:

training venue should be selected outside of Hefei City, preferable those cities also have ADB projects with successful resettlement experiences so that trainees can learn their experiences from study tour(s). This will need help from ADB.

trainees should be those who will be seconded to the Project to undertake resettlement tasks, and that those resettlement official who participated in the RP discussions with PPTA resettlement consultant in August is a must.

training timing is planned as in September up to April 2007 8.3.2.2 Measures To Strengthen Organizations

57

174. A variety of measures will be taken to support capacity building and ensure effective implementation and control of the RP. These include:

The PMO should have sufficient funds and equipment to assure the efficiency of the work;

Information system should be established through computer to guarantee the smooth information delivery between the authority and the lower levels;

Vertical linking agencies will set up reporting system, to report once a month; Horizontal linking agencies will hold coordinating meetings once a season to enhance

information exchange; Issues put forward by the APs will be reported and disseminated through the

resettlement offices at each level; Issues which occur during construction will be reported by the resident engineer, first

to his/her organizational level and then, if necessary, upwards through each of the hierarchical levels;

Disciplinary measures will be introduced to constrain individuals from shifting responsibilities onto others and from delaying the resettlement process. People responsible for causing trouble will be punished, and those with good performance will be awarded.

8.4 Roles of Civil Organizations

175. IAs agreed that they will hire/second one female staff working in the resettlement office, both for resettlement file keeping and to work (day-time)7 with and assist women in all aspect of resettlement activities. However, it is anticipated that the women’s federation can play a significant role during land acquisition, resettlement and income rehabilitation process. The social safeguard center in Xinzhan will provide a leading role in skill training.

7 Many resettlement staff from IAs reported that they have to work weekends and even during night time in order to tackle the conflicts or problems in time.

58

X. IMPLEMENTATION SCHEDULE

10.1 Activities Prior to Resettlement

1) Determine scope of land requisition and dismantling of houses. 176. According to project design and layout, identify and peg land requisition areas based on detailed designs. Resettlement will be announced to the affected CRCs through meetings and notices regarding land acquisition will be displayed in the CRCs. HXSAOC - XCB will organize 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. 177. The Hefei Land Administration Bureau and Demolition and Resettlement Administration Office will organize appropriate staff to visit the affected sites, check and register land, houses, subsidiaries, utilities, equipment etc, and determine the nature and proprietary rights of infrastructure, and record the information in detail. 3) Draw up the plan of land acquisition and resettlement and confirm and compile the budget. 178. The RP will be updated based on the detailed design and DMS and will be sent to the ADB for approval prior to commencement of land acquisition, demolition or civil works. According to findings of investigation, the Land Administration Bureau and Demolition and Resettlement Office and HXSAOC- XCB will prepare the compilation of the land acquisition and resettlement plan and prepare a budget based on relevant policies and regulations, and then will submit the plan and budget to Hefei Municipal Construction Committee for review. 4) Contract signing 179. Under the coordination and guidance of the PMO, HXSAOC- XCB will sign the land requisition contract agreement with relative District Land Administration Bureau and Demolition and Resettlement Office, and pay them the total contract amount. 180. Sign land acquisition and compensation agreement according to the compensation rates set out in the RP, which are consistent with the related laws and regulations of resettlement stipulated by the State, Province, Municipality and agreed by the ADB. The Land Administration Bureau and Demolition and Resettlement Office respectively, consult and negotiate with CRCs/village committees on the aspects of compensation and resettlement. CRCs/Village committees, in turn, consult with households who will be affected. When agreements are reached land acquisition and resettlement agreements are signed instantly by persons requiring resettlement, Municipal Land Administration Bureau and Resettlement Office. The APs will be provided a copy of the agreement they have signed. The Municipal

59

Land Administration Bureau supervises and witnesses the process.

10.2. Activities during Resettlement 181. Concerned Land Administration Bureau will disburse the land compensation fees to the communities/villagers according to the signed agreement. Villages provide land, through the readjustment of village land distribution. On the premise agreed by 2/3 villagers, villages can use the funds of land acquisition and compensation fees to adjust industrial structure and increase villagers’ income. The Demolition and Resettlement Office will provide houses for those affected by dismantled households, or allocate the displacement compensation fees to the affected people. 1) Land usage permission 182. Project IA should make efforts in going through the formalities of obtaining land usage permission so as to complete the procedure timely. IA will apply for the land use permission to land administration department level by level. Land acquisition certificates must be approved prior to payment of compensation and dispossession of land, housing and private assets. 2) Facilities displacement and reconstruction 183. The dismantling of facilities and utilities affected by the project will be supervised by the EA. HXSAOC- XCB will disburse compensation fees to the proprietor and the proprietor arranges displacement, restoration and reconstruction of these facilities and utilities. 3) Resettlement 184. The APs will be resettled by the government in close proximity to their original environment. . Great improvements have been made in recent years to provide housing with full services nearby, such as good access to communication, medical treatment, culture, education, business, telecommunication, public utilities and residential environment.. 4) Internal and external monitoring and evaluation 185. Internal monitoring will be responsibility of the local PIA and they will prepare and submit a monitoring report to the EA every 6 months. External monitoring will be the responsibility of the EA, who will contract this work to an independent consultant and will submit monitoring reports every year to the ADB. The external monitoring targets at the AP’s income rehabilitation and maintenance of their livelihood after land acquisition and demolition. In case the targets are not achieved, constrains will be identified. 186. As affected communities and villages are in the suburb of Hefei city, per capita land is getting less along with the big construction of Hefei. As a result, there is not much room for agriculture development in these areas. The second and third industries are encouraged such as small restaurants, shops, food processing plants. AP would have opportunities to find jobs since the communities/villages keep good relation with these entities and the business is expanded.

60

10.3 Activities after Resettlement 1) Continue Internal and external monitoring and evaluation 2) Filing and Documentation 187. When resettlement work is completed, responsible persons will write a resettlement complementation report. HXSAOC- XCB will review and file it.

188. The resettlement implementation schedule is shown in Table 10-1.

189. The Project construction is scheduled to start in 2007 and will be completed in 2011. Based on the project schedule of civil works, the resettlement plan preparation will be continue after the PPTA stage, and the land acquisition and resettlement are planned to commence in October of 2007. The RP planning and implementation schedule with time bound activities is shown in Figure 7.

61

Table 10-1 Resettlement Implementation Supervision Milestones

No. Resettlement Tasks Target Responsible Agency

Completion Deadline

Status and Additional Deadlines

1. Disclosure 1.1 Information booklet 976 copies XCB Oct 20. 2006 completed

1.2 Resettlement plan distribution to resettlement offices/villages/APs 30 copies XCB Nov. 2006

1.3 RP placed on ADB website ADB Dec.2006

2. Detailed Measurement Survey (DMS)

2.1 Updated RP based on DMS with assessment on household land and income loss

May 2007

2.2 Updated RP based on DMSDistribution to resettlement offices/villages/APs

30 copies May 2007

3. Detailed Rehabilitation Plans

3.1 Assistance for Vulnerable Groups c.10 H.H.

Xinzhan Social safeguard bureau/ Civil affaires bureau

Oct. 2007

3.2 Technical training plan for AF 200 APs

Xinzhan Social safeguard center/ women’s federation

Dec.2007

4. Resettlement Plan and Budget 4.1 Complete redline survey (map) XCB May. 2007 4.2 Approval of RP & budget HMG Nov. 2006 4.3 Approval of compensation rates HMG Nov. 2006 4.4 Staking survey XCB Apr. 2007 5. Compensation Agreements 5.1 CRC/Village agreements 3 CRCs XCB June 2007

5.2 Enterprise/shop agreements 0 businesses XCB June 2007

5.3 Household agreements 976 HHs XCB June 2007 6. Implementation Capacity 6.1 district resettlement staff 10 staff XCB Jan. 2007 6.2 Designate village representatives 6 staff XCB Jan.. 2007 6.3 Training of staff 30 of staff 3 district/county Apr. 2007

6.4 Setting up grievance redress committees 5 of staff

Xinzhan Administrative Committee

Apr. 2007

7. Monitoring and Evaluation 7.1 Baseline survey 10% of APs External Monitor May. 2007 7.2 Set-up internal supervision As per RP XCB Apr. 2007 7.3 Contract external monitor As per RP XCB Apr. 2007 7.4 Internal monitoring reports Quarterly IA Apr. 2007

7.5 External monitoring reports Semi-annual External Monitor Dec. 2009

7.6 Evaluation reports (tracer surveys) Annual External Monitor Dec. 2009

7.7 Resettlement Completion Report External Monitor/ XCB Dec. 2009

8. Documentation of Consultation As per RP XCB Dec. 2009 9. Documentation of Grievances As required XCB Dec. 2009 10. Flow of Funds / Compensation XCB 10.1 Executing or Implementing Agency XCB Aug. 2008

62

No. Resettlement Tasks Target Responsible Agency

Completion Deadline

Status and Additional Deadlines

10.2 Project Management Office –Resettlement Unit or NGO Resettlement Implementer

XCB

Aug. 2008

10.3 To affected households 1,922 APs 11. Commence Resettlement

11.1 Land acquisition 2136 mu XCB Sep.-Dec 2007-

11.2 House removal 26,170 m2 2837 APs XCB July-Dec

2007-

63

Figure 7 RP Planning and Implementation Schedule

Main activities I II III IV I II III IV I II III IV

RP preparation and approval

Approval of FS

ADB approval procedure

Loan negotiation, signing contract

Preliminary and detailed desgins

Approval of designs

Project tendering preparation

Organization set-up and training

Distribution of RIB

Announce resettlemt policies/ schedule

Distribution of Chinese RP

Land use pegging

Detailed Measurement Survye (DMS)

Identification of vulnerable groups

Disclosure of updated RP

Public consultation meeting, formulate income rehabilitation plan of Aps

Permission of land use

Processing land requisition procedures

Signing compensation agreement

Determination of the fund distribution

Inspection of compensation payment

Commence of land acquisition/clearance

Skill training of the affected persons

Assistance to the vulnerable group

Set up the internal monitoring system,procedures

Contract an external monitor

ADB approval of the monitoring outline

Monitoring land requisition and resettlement

Monitoring the implementation of the income recovery plan

Monitoring the economic social indicators and the assistance provided to vulnerable groups

External monitoring and evaluation

Remark: Critical path Milestone Progress

Incomerecovery

Monitoringand evalution

200910

2007 2008Timetable

Landacquisition

andresettlement

11

2010

Projectprocedure

Constructionpreparation

12 10 11 128 9 1 2 7 8 93 4 5 6

64

XI. MONITORING, EVALUATION AND REPORTING

190. The PMO and IA will regularly monitor and evaluate the implementation of land acquisition and resettlement activities in order to ensure resettlement work is implemented successfully in accordance with the RP, and to achieve the target of appropriate livelihood restoration for APs. The monitoring will comprise two components: internal monitoring and external monitoring. Internal monitoring will be mainly conducted by IA and will be overseen by the project leading group, PMO and the IA to ensure that organizations involved in implementation of land acquisition and resettlement work abide by principles and schedules of the Resettlement Plan (RP). 191. The aim of internal monitoring is to encourage the concerned organizations to carry out good performance while the external monitoring and evaluation will be conducted by an independent agency periodically on the activities of land acquisition, demolition and resettlement. 192. The scope of monitoring on resettlement will cover data collection, analysis, and the reporting of progress for an internal monitoring while the external monitor will check progress but their main role is to evaluate quality and results of resettlement. 193. Resettlement monitoring will focus on the following two aspects:

The progress of disbursement and provision of entitlements to APs. Comparison of APs and villages pre and post resettlement socio-economic

situation, particularly livelihood restoration. Background socio-economic data collected during the AP inventory and census will be used in this assessment.

11.1 Internal Monitoring 194. Internal monitoring and Evaluation will be undertaken by the PMO, Hefei Land Administrative Bureau, XCB, and IA, to assure the concerned departments to abide by the RP. Internal monitoring and evaluation aims to ensure good performance during the resettlement process.

11.1.1 Objectives of Internal Monitoring

195. The objectives of internal monitoring are: inspect the progress of demolition, displacement and land acquisition. assure the smooth communication channel between project managerial staff and

affected people. assure timely full disbursement of compensation. assure timely settlement of appeals by affected people. assure the compensation disbursed is legally appropriate and corruption is prohibited.

65

11.1.2 Major Tasks of Internal Monitoring

196. The executive agency will take major responsibility of internal monitoring, covering the activities of affected people, entitlement, advice, grievance, problems, efficiency, timing, and budget, etc.

Disbursement of entitlements to AP: compensation, housing, cultivated land, and employment as specified in the RP.

Social adaptability and cohesion: impacts with a gender perspective on APs and vulnerable groups, public participation, non-government’s role, AP’s attitudes and commons after resettlement, number of complaints and appeal procedures, implementation of preferential policies and income restoration measures, and improvements in women’s status in villages.

Timing of house demolition and restoration: provision of residential land, disbursement of compensation for house replacement costs, and reconstruction of adequate housing and updating of resettlement schedule and resettlement budget where required

Rehabilitation of community facilities and services: timely rehabilitation of community facilities and services and ensuring that mitigation measures to minimize impacts are implemented.

Public participation and consultation: involvement of AP in resettlement implementation as per the public consultation plan outlined in the RP. Review of grievance register and responses to complaints.

Assistance to vulnerable groups. 197. It is anticipated that internal monitoring reports will be brief documents reporting on progress to date and identification of issues, how issues were resolved, consultations undertaken, and revisions of the resettlement schedule and disbursement of budget where required.

11.2 External Monitoring and Evaluation

198. Required by the ADB, the PMO will appoint an independent agency to carry out the external monitoring and evaluation on resettlement. The independent agency should have good reputation and successful experience and fully understand the ADB’s policy and requirements on resettlement. The PMO will sign a contract with this agency. The terms of reference (TOR) for the independent evaluator are listed in Annex 2.

11.2.1 Objectives

199. The objectives of external monitoring and evaluation are as follows:

Evaluate the level of quality of results of the rehabilitation of affected people after land

66

acquisition and resettlement. Identify the causes of any problems with the policies or implementation in case

rehabilitation is not fully made. Evaluate the progress and performance, effect, affection including the response of

affected people, resettlement policies, and sustainability.

11.2.2 Methodology

200. The methodology of external monitoring and evaluation are listed as follows:

independent agency will conduct baseline survey on the affected area and acquire the baseline data of APs. The investigation about production and AP’s living conditions will be made every year to measure the change. Sample trace investigation of affected households and businesses will be adopted. Irregular interview or site visits will be made to acquire sufficient data for evaluation.

group discussion and consultation with various groups of people from government, non-government, community and affected people.

interview with key persons such as local CRC leaders and village heads regarding resettlement implementation.

community public meetings to collect various information about resettlement. purposeful direct observation regarding progress of demolition and replacement and

visit to the individual or groups. informal investigation or interview by non-sampling means such as with the affected

people, villagers and staff engaged with resettlement.

11.2.3 Major Tasks

201. The independent monitoring agency will monitor and evaluate the resettlement relative with the project and consolidate their findings and assessment into a report to ADB, EA and other concerned departments. These reports can be helpful in the policy-making by concerned department. The affected people and non-government organizations and communities will participate in the evaluation activities. 202. External monitoring and evaluation will cover the quality assessment on following the aspects:

adequacy of compensation and timelines of payment; the house demolition and resettlement of APs; the situation of house and living environment pre and post resettlement; bear in mind

with a gender perspective livelihood restoration of APs; the operation and efficiency of the resettlement institutions.

67

11.3 Reporting Requirements 203. Internal monitoring reports will be submitted quarterly by project IA to the EA and EA will submit it in the progress report to ADB. The external M&E reports will be submitted directly to EA and ADB simultaneously every six months by the External Monitor. The external evaluation reports will be continued once every six months until the completion of the resettlement, and then the annual evaluation reports will also be prepared by the external monitor once every 12 months until Project completion. Finally, after project completion, the EA will prepare a resettlement completion report and submit to ADB.

68

ANNEXES

Annex 1 Resettlement Information Booklet (RIB) 8

(Name of APs) The construction of Improved Road Infrastructure and Traffic Management in the Xinzhan Zone (name of a component/ or sub-component), a key component of Hefei Urban Environmental Improvement Project financed by ADB loan, will affect the location of your family (unit) to some extent. The booklet is distributed to inform you on the basic status of the sub-component of the Project, relevant land acquisition and relocation policies of the state and the impacts on your household. In order to reduce traffic congestion and improve road safety, Hefei Municipal Government (HMG) the Executing Agency (EA) together with Administrative Committee of Hefei Xinzhan Pilot Zone for Comprehensive Development is the institution to execute the Project (Sub-Executing Agency, or Sub-EA) intends to utilize part of the Asia Development Bank (ADB) loan under the Hefei Urban Environment Improvement Project (HUEIP) to launch a sustainable traffic management development project in the Xinzhan Zone in north east Hefei – Sub component 3.1. This Project is to be implemented by Hefei Xincheng State Assets Operating Company (HXSAOC) as the implementing agency (IA) with the Xinzhan Construction Bureau (XCB) as the implementing unit. This component involves the construction of 26.4km of urban roads (Xinfei Road Huainan Road, Dianchang Road, Xinfeng and Huanyuan Road No. 1,2,3,4,5) together with ancillary works including storm water drainage and the completion and testing of a pilot innovative traffic management system, which if successful would be replicated in other parts of the City or elsewhere. 1. Compensation Rates The compensation rates of land acquisition and resettlement are determined on the basis of sufficient surveys, with reference to involuntary resettlement principle of Asian Development Bank, state laws and regulations and Anhui and Hefei by-laws and aimed to restore and improve living standard of affected persons in short period after resettlement. The compensation rates applied to the Improved Road Infrastructure and Traffic Management in the Xinzhan Zone (name of a component/ or sub-component) are tabulated in Table A1-1(To be filled in based on different components by IA based on RP, particularly the entitlement matrix and budget table)

8 The RIB was disclosed to all APs on October 20, 2006, and the RP will be posted on the ADB website before appraisal.

69

Table A1-1 Compensation Rates for Land Acquisition and Resettlement Category Compensation Rates Remark

1. Permanent Land Acquisition Compensation fee: CNY18000/mu Resettlement subsidy: CNY 30000/person

CNY 10000/person for APs ≤16 years old

2.Temporary Land Use 3.Compensation for Standing Crops

CNY700/mu

4. Compensation for trees CNY75/tree

5. Houses Provide resettlement apartment. (CNY1000/ m2)

30m2/person

6. land attachments CNY 1.21 million Road, graves

7. House attached structures Based on policy ); flexible/negotiable

(usually higher than replacement cost

8. Moving allowance CNY400/household Tow times (200x2)

9. Transferring subsidy CNY6/m2 for 18 months Double if exceed 18

months 10. Housing plot preparation No

11. Enterprises/shops

No (CNY2000/shop, if any) No compensation in policy, but Xinzhan will pay compensation if there in case there is any shop affected.

12. compensation for income loss Reasonable compensation (Negotiable, if any).

2. Impacts on Your Household (unit) Table A1-2 Impacts of a Specific Household or Unit

Impacts Quantity Compensation rate

Compensation deserved

Remark

3. Estimated time of project implementation Table A1-3 Proposed Schedule for Key Activities

Items Time Remark Promulgated bulletin of land 2006.10-2007.06

70

acquisition and relocation Compensation payment 2007.7-2007.12 Land acquisition and relocation

2007.9-2007.12

Move into new house 2009.3-2009.6 Preparation for the project 2007.11－2007.12 Implementation of the project

2008.1－2009.12

4. Rights and Obligations of Affected Persons

(1) Rights of affected objects

Get all kinds of deserved compensation in complete conformity with the above compensation rates; reflect opinion and suggestions to land acquisition and relocation offices or project resettlement offices of CRCs/village committees, towns, district progressively, specific contents of which including base number of compensation quantity, compensation rate, time of compensation payment, site selection for house reconstruction, etc. various resettlement offices must reply to complaints of affected people and problems subordinate resettlement office reflects within 7 days. Generally there are five channels for grievance redress in Hefei City: (i) the project IA, (ii) the external independent supervision institution, (iii) the township/CRC and the County/District LABs and Resettlement Offices, (iv) the HMG or (v) by taking legal action.

(2) Obligation of affected persons Actively cooperate with implement of state project. New buildings shall not be constructed within the scope of the resettlement survey,

otherwise the compensation fund will be canceled. Demolish buildings within the red-line /blue-line (outer limits of road width or river

width respectively) scope of project planning. 5. Assistance to Vulnerable Households Vulnerable households would get non-cash assistance as listed below:

Labor assistance. CRC/Village would provide labor assistance in house relocation and reconstruction for those households lack of labor.

Give them priority in site selection for house reconstruction in the rural area, and provide guidance on relocation

6. Organizations of Land Acquisition and Resettlement The Project Management Office (PMO) Address: Postal code: Tel: PMO, Finance Bureau, HMG 231300 0551-2843995 Project Resettlement Office (RO) within IA

71

Address: Postal code: Tel: No. 88, Shengli Road, Hefei 230011 0551-4253122 Project RO at District/County Address: Postal code: Tel: 7. Right of Interpretation of the Booklet The right of interpretation of the booklet belongs to the PMO.

72

Annex 2 TOR for External Monitoring and Evaluation

1. Objectives The objectives of the external M&E are: According to ADB’s Resettlement Handbook and ADB’s Social Analysis Guideline, an independent monitoring and assessment will be made on the resettlement to analyze and compare the change of living level of APs by checking and tracking the progress and fund and management relative to resettlement. The report that is provided to the ADB, the EA and concerned departments will provide sufficient information and suggestions for reference to the concerned departments to keep them informed on the progress and status of resettlement, so as to assure them that i the problems and the proposed solutions for improvements are identified. 2 Tasks for Monitoring and Evaluation Tasks for M&E are shown below. Progress of land acquisition and demolition includes:

Progress of land acquisition; Progress of temporary land occupation; Affected progress of the project.

Progress of house demolition and resettlement includes:

Progress of house demolition and status of compensation; Progress of house construction for resettlers; 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 on availability of compensation, rehabilitation and reconstruction of public facilities and progress of construction;

73

AP’s participation in the processes of preparation of RP, land acquisition and resettlement and income rehabilitation; Monitoring on the mechanisms and efficiency of grievance procedures; Collection of monitoring data and establishment of a data file; Comparison analysis; Report submission. 3. Technical Procedures Prepare RP working outline; prepare questions and tables for investigation; prepare the scheme of random sampling; base investigation; set up information management system; supervise survey; establish data files; compare analysis and make assessment; prepare monitoring report; check the completion of monitoring; draw conclusion. 4. Independent Monitoring Agency An independent monitoring agency will be engaged to take the responsibility of monitoring on the resettlement of the project by PMO or separately by IAs. The PMO will provide assistance to the external monitoring and evaluation agency, particularly in the aspects of field survey, staffing and logistics. 5. Monitoring and Evaluation Methods A combined method of field survey, analysis and comprehensive assessment will be undertaken; An overall and site survey of progress, funds, institution and management and a random sampling survey. Sampling according to classification. Tracking the samples at 10% of house-demolished households and 10% of households who loss land. Overall survey including table investigation, meetings, and file review. Collection of photos, tape records, video records, physical substance except for written documents. 6. Schedule of Monitoring and Assessment

74

April. 2006 Contract an independent evaluator, prepare the working outline;

May.2007 prepare monitoring plan such as outline of survey, tables, establishment of monitoring system, defining assignment, and selection of monitoring samples;

June. 2007 Baseline and first survey, submit No. 1 monitoring report;

Dec. 2007 Second survey, submit No. 2 monitoring report;

June.2008 Third survey, submit No. 3 monitoring report;

Dec.2008 Fourth survey, submit No. 1 evaluation report;

June.2009 Fifth survey, submit No. 2 evaluation report;

75

Annex 3 Xinzhan Land Compensation By-law

Implementation Rules for Compensation and Allocation for Requisition of

Collective-owned Land in Hefei Xinzhan Comprehensive Development

Experimental Zone

Printed By Administration Committee of Hefei Xinzhan Comprehensive Development

76

Experimental Zone

The People’s Government of Hefei HZM[2004]No.17

An Official Reply to Approve the Implementation Rules for Compensation and Allocation for Requisition of Collective-owned Land in Hefei Xinzhan Comprehensive

Development Experimental Zone

To the Administration Committee of Hefei Xinzhan Comprehensive Development Experimental Zone: Your Demand for Instructions of Implementation Rules for Compensation and Allocation for Requisition of Collective-owned Land in Hefei Xinzhan Comprehensive Development Experimental Zone (HZSG[2004]No.17)has been received. The Implementation Rules for Compensation and Allocation for Requisition of Collective-owned Land in Hefei Xinzhan Comprehensive Development Experimental Zone, after being studied, has been approved for your issuance and implementation pursuant to prescribed procedures.

The People’s Government of Hefei April 19, 2004

77

Demand for Instructions of Implementation Rules for Compensation and Allocation for Requisition of Collective-owned Land in Hefei Xinzhan Comprehensive Development

Experimental Zone

To Municipal Government: To enhance land administration works in the Experimental Zone, to safeguard the legal rights & interests of land owners and users to ensure the smooth progress of our development and construction cause, this Committee, by taking into account practical situations in the Experimental Zone, has framed this Implementation Rules for Compensation and Allocation for Requisition of Collective-owned Land in Hefei Xinzhan Comprehensive Development Experimental Zone for enforcement in the Experimental Zone. Such Rules have taken reference to Notice on Printing the Interim Measures for Requisition of Collective-owned Land in Hefei (HZ[2003]No.138) issued by Municipal Government, Notice on Forwarding the Implementation Measures for Guarantee of the Basic Cost of Living Allowance for Peasants Requisitioned of Land in Urban Areas of Hefei (trial) (HZB[2004]No.11) issued by the General Office of Municipal Government and Notice on Forwarding the Implementation Rules for Peasants Requisitioned of Land to Apply for Township Workers’ Basic Old-age Insurance (HZB[2004]No.10) issued by Municipal Government etc. Need for your instructions. April 1, 2004

Implementation Rules for Compensation and Allocation for Requisition of Collective-owned Land in Hefei Xinzhan Comprehensive Development Experimental

Zone Article 1 To enhance the compensation and allocation for requisition of Implementation

Rules for Compensation and Allocation for Requisition of Collective-owned Land in Hefei Xinzhan Comprehensive Development Experimental Zone (to be referred to as the Experimental Zone hereinafter), to safeguard the legal rights & interests of collective land owners and users to ensure the smooth progress of the legally approved construction land utilization, these Rules have been framed by taking into account practical situations in the Experimental Zone, and with reference to prescriptions in Notice on Printing the Interim Measures for Requisition of Collective-owned Land in Hefei (HZ[2003]No.138) issued by Municipal Government, Notice on Forwarding the Implementation Measures for Guarantee of the Basic Cost of Living Allowance for Peasants Requisitioned of Land in Urban Areas of Hefei (trial) (HZB[2004]No.11) issued by the General Office of Municipal Government and Notice on Forwarding the Implementation Rules for Peasants Requisitioned of Land to Apply for Township Workers’ Basic Old-age Insurance (HZB[2004]No.10) issued by Municipal Government etc.

Article 2 These Rules shall apply to requisition of collective-owned land in the Experimental Zone.

Article 3 Under the guidance of municipal land resources administration departments, the

78

requisition of collective-owned land in the Experimental Zone shall be brought under unified plan and unified requisition of the Administration Committee of the Experimental Zone. Construction Development Bureau of the Experimental Zone will be in specific charge to consolidate the businesslike works of compensation and allocation for the requisition of collective-owned land. The local township government (sub district offices), and village committee (community committee) shall provide cooperation and assistance.

Article 4 For compensation and allocation for relocated houses and attachments involved in land requisition, the Implementation Rules for Compensation and Allocation for Household Relocation in Qilitang Town of Hefei Xinzhan Comprehensive Development Experimental Zone shall be taken as a reference.

Article 5 Standing Crop Compensation Standards (1) Vegetable fields: Class I (shed fields): RMB 1,400/mu; Class II (professional vegetable

bases): RMB 1,200/mu; Class III (vegetable fields without irrigation facilities, of low output, incompetent for year-after-year cultivation): RMB 1,000/mu.

(2) Grain lands: Class I (irrigated lands): RMB 900/mu; Class II (nature-dependent lands and irrigable lands): RMB 800/mu; Class III (dry lands): RMB 700/mu.

(3) Fish pond: Specially-equipped ponds (with oxygen equipments and other hardware facilities): RMB 1,400/mu; ordinary ponds: RMB 900/mu. (4) Fruit garden: Class I (being planted over 5 years): RMB 3,000/mu; Class II (3-5 years): RMB 2,500/mu; Class III (less than 3 years): RMB 2,000/mu. (5) Forestry: RMB 1,000/mu (including bamboo forests and plant nurseries). (6) Water pool (mat grass, lotus roots and water chestnuts): RMB 900/mu. (7) No compensation for plantation on requisitioned lands.

Article 6 Compensation standards for well-structured greenhouses and plastic sheds that have always been used for plantation.

(1) Greenhouse: RMB 30/m2 (complete equipments made by professional manufacturers); RMB 25/m2 (height of brick masonry walls, back brims or ridge exceeding 1.8m). (2) Plastic shed: RMB 6/m2 (bamboo structure, plastic membrane, size exceeding 1.6 H*3W). RMB 3/m2 (bamboo structure, plastic membrane, size smaller than 1.6 H*3W). No compensation for any of the following cases: (1) Facilities constructed after the land requisition notice issued by the construction

development bureau of the Experimental Zone; (2) Without products or mating facilities like pot and stove etc, in the name of producing

agricultural by-products like mushrooms; (3) Facilities constructed on grain lands or open lands. Article 7 An agricultural populations and plantation dynamic statistical system will be

established by the township government (sub district office) and village committee (community committee). The base year for dynamic statistics is 2004, and village committee (community committee) will report the figures of agricultural population and plantations of the base year to superior administrative levels, level by level, to the construction development bureau of the Experimental Zone for review and collection. Such data will serve as the reference to build the database of agricultural population and plantation quantities of the base year in the Experimental Zone.

79

The construction development bureau of the Experimental Zone shall register the variation in the quantity of agricultural populations and plantations of units requisitioned of land after the land requisition project is completed, and this will serve as reference for reviewing works during the compensation and allocation for land requisition.

Article 8 The agricultural residents in need for land-requisition allocation refer to those permanent agricultural residents living in areas where the registered permanent residences of the peasants requisitioned of land are located before such registered residences are frozen. The base date for freezing registered permanent residences shall refer to the time when the provincial authority or the State Council has approved the land requisition. According to the Law of the People's Republic of China on Land Contract in Rural Areas, the allocation objects will be discussed and declared by village committee (community committee) or villager representatives assembly, and then after being reviewed by township government (sub district office), such objects will be approved and confirmed by the Administration Committee of the Experimental Zone.

People in the following cases within in the land requisition area will be recognized as permanent agricultural residents:

(1)Agricultural residents with their registered permanent residences within the land-requisition areas, being registered during the second round of land contract and are holders of Land Contracting Agreement and Certificate for Management Right over Collective Lands;

(2) Added agricultural residents through legal marriage and legitimate children before the base date for freezing registered permanent residences;

(3) On campus students (various grades) whose original registered permanent residences are located in the land-requisition areas;

(4) After-graducat6ion students (various grades) whose original registered permanent residences are located in the land-requisition areas and have then been returned to original residences, and are unemployed;

(5) Labor reform and labor education people whose original registered permanent residences are located in the land-requisition areas;

(6) Active-duty volunteer solders whose original registered permanent residences are located in the land-requisition areas and have then been returned to original residences after retirement from the army, and are still agricultural residents.

Article 9 The number of population to be allocated shall be obtained by dividing the area of requisitioned land with the average cultivated land area per capita of the rural collective economic organization. The allocated people during past land requisition shall be counted out.

Article 10 The allowance fees for land-requisition allocation shall be calculated on the basis of agricultural population requisitioned of land who are in need for allocation. The standards will be: RMB 10,000/per capita for those under 16 years old, and RMB 30,000/per capita for those above (including) 16 years old (among this, RMB 12,000/per capita for free-lancers and plan-as-a-whole, the guarantee fees for basic cost of living allowance is RMB 18,000/per capita). The base date for defining age periods shall refer to the time when the provincial authority or the State Council has approved the land requisition.

Article 11 For those whose original registered permanent residences are located in land requisition areas, and have been granted non-agricultural status through contribution or due to the 2 thousandth and 3 thousandth special policy, and are now unemployed, then, before the

80

base date for freezing registered permanent residence allocation, RMB 10,000/per capita will be granted to non-agricultural residents below 16 years old as bring-up allowance fees, and RMB 12,000 will be granted to non-agricultural residents above (including) 16 years old as self-employing allowance fees.

Those who have been granted non-agricultural status through contribution or due to the 2 thousandth and 3 thousandth special policy cannot enjoy guarantee of the basic cost of living allowance of peasant requisitioned of land; for those complying with requirements for guarantee of subsistence allowances for urban residents, they should be brought into the range of guarantee of subsistence allowances for urban residents.

Article 12 The residents need to be allocated due to land requisition must show the all the following valid certificates for allocation procedures, and these certificates shall include: Land Contracting Registration Book, Land Contracting Agreement, and Certificate for Management Right over Collective Land, Household Register, ID Cards and Corp Land Measurement Resignation Book etc.

Article 13 For agricultural residents under 16 and need to be allocated due to land requisition, bring-up allowance fees will be granted at one time, in terms of currency.

Article 14 For male agricultural residents aged 16-45 (including 45) and female agricultural residents aged 16-40 (including 40) who need to be allocated due to land requisition, labor allocation will apply or self-employing allowance fees will be granted at one time, and guarantee of basic cost of living allowances will also be available for them.

Article 15 For male agricultural residents above 45 (excluding 45) and female agricultural residents above 40 (excluding 40) who need to be allocated due to land requisition, either of the following allowance means can be chosen:

(1) Granting of self-employing allowance fees at one time, with guarantee of basic cost of living allowances.

(2) Establishment of personal account for living allowances which will be granted each month with guarantee of basic cost of living allowances. The monthly living allowance fee will be RMB 100/per capita.

1. Acting out of free will, the peasants requisitioned of land who prefer personal accounts for living allowances should make written applications to local village committee (community committee), and should be definitely willing to give up the self-employing allowance fees which are to be granted at one time.

2. The peasants requisitioned of land who have obtained personal accounts can start drawing living allowance fees by month from the second month for 15 years after the personal accounts are opened. And if they have reached the age to drawing guarantee fees for basic cost of living allowances before this duration ends, such basic living guarantee fees can be drawn at the same time.

Article 16 Acting out of free will, the peasants requisitioned of land who are in need for allocation should make written applications to local village committee (community committee) for drawing living allowance fees, labor allocation and self-employing allowance fees. An allocation contract will also be singed, and after this contract has been notarized by the notarization organs, relevant procedures can be undertaken and associated fees can be drawn.

Article 17 For peasants requisitioned of land who are in need for allocation and comply with labor conditions, they will be brought under unified administration of the labor and

81

personnel bureau of the Experimental Zone. By following the needs for economic and social development, relevant departments should strive to widen the labor allocation channels, create more varied employment opportunities, establish and consummate labor market, as well as to create a favorable employment environment. Meanwhile, policy guidance should be enhanced and re-employment should be encouraged.

Article 18 Main re-employment channels for agricultural residents in need for allocation due to land requisition are:

(1) Self-employment; (2) Labor allocation: 1. Employed by in-district employers (including project units in district and units belonging to local district); 2. For community management and services; 3. Employed by collective economic organizations; 4. Labor export. Article 19 The self-employing allowance fees for agricultural residents requisitioned of land

who prefer labor allocation (construction land units are in need for labors and the allocation objects are qualified) shall be paid to the employer. The employer should enter into an initial-phase labor contract for at least 5 years with the allocation objects, and by following prescriptions, the employer should, on the basis of existing guarantee of the basic cost of living allowances for peasants requisitioned of land for the allocation objects, undertake the transfer and continuity procedures for township works’ old-age insurance relationships for the allocation objects. In case the labor contract needs to be discharged due to enterprise reformation or bankruptcy etc of the employer before contract expiration, then the employer should payback the remaining self-employing allowance fees by deducting RMB 500 each year for the total employment years (excluding cases in which the labor contract is discharged due to causes of the employee).

Article 20 The labor and personnel bureau of the Experimental Zone should perform well in investigation studies of supply & demand on labor market to carry out pertinent occupational trainings and establish labor supply & demand archives to provide more labors for employers. For Experimental Zone labors who occupy allocation posts and are in unregistered employment in various enterprises and institutions in this administrative areas, the employers should take in-time actions to complete registration for achieves at the labor and personnel bureau of the Experimental Zone, and all such cases will be regarded as already being employed.

For agricultural residents in need of allocation due to land requisition, if they have been allocated through employment and are later refused by the employer or are dismissed on their own will, the Experimental Zone will not conduct second allocation; if the demission has been caused by reasons of the employer, then according to specific circumstances, second allocation can be granted.

Article 21 Acting out of free will, the agricultural residents in need of allocation due to land requisition who have preferred self-employment will make written applications to local village committee (community committee), and sign an allocation contract which will then be notarized by notarization organs before currency allocation can be applied. Self-employment shall include employment means that do not take up labor allocation posts in this district, including opening individual industrial & commercial business, private enterprises, and

82

spontaneous-minded job hunting outside this district etc. Article 22 For registered permanent residences moved into the land requisition areas

before the base date for freezing registered permanent residences, and are not agricultural residents fit for allocation due to land requisition, they will be brought into the guarantee of subsistence allowances for urban residents and apply for associated allowance fees after the peasants requisitioned of land have been granted the non-agricultural residence status according to prescriptions. They may also register at employment and social security services institutions to enjoy the same employment guidance and employment training services, as well as the same employment policies as agricultural residents in need of allocation from the land requisition area.

Article 23 For relocated agricultural residents who have failed to moved into the land requisition area before the base date for freezing registered permanent residences, they will be will be brought into the guarantee of subsistence allowances for urban residents and apply for associated allowance fees after they have moved back, obtained the certificate for house property rights and have finished the entry procedures. They may also register at employment and social security services institutions to enjoy the same employment guidance and employment training services, as well as the same employment policies as agricultural residents in need of allocation due to land requisition.

Article 24 For villagers complying with the requirements for obtaining non-agricultural residence status due to land requisition can be granted non-agricultural status. The local village committee (community committee), township government (sub district office) should transact the application producers for granting non-agricultural residence status to agricultural residents in need for allocation due to land requisition within 3 month upon the approval of the compensation and allocation scheme for land requisition, and this should be reported to the construction development bureau of the Experimental Zone for reference.

Article 25 Land contractors, by holding Certificate for Land Contracting and Management Right or Land Contracting Agreement, will undertake, together with land-requisition relocation staffs, field measurement and registration of the corps and attachments etc on the contracted land.

Article 26 The construction development bureau of the Experimental Zone will organize professional personnel to undertake appraisals and determine whether the greenhouses and plastic sheds comply with compensation regulations and compensation standards.

Article 27 The land measurement registration book shall clearly comprise land sort, class and specifications of attachments, compensation standards and amount. All these items should be confirmed with signatures from the two parties before public notification.

Article 28 If no dissension or dissidence has occurred over land contracting and management after the public notification period ends, the land contractors shall sign their names before drawing the compensation fees, and the Certificate for Land Contracting and Management Right should be returned at the same time.

Article 29 Any dissension or dissidence occurred over land contracting and management during the public notification period can be solved through negotiations between the concerned parties, and intermediation by the village committee or the township government etc is also acceptable.

If the concerned party refuses negotiations and intermediations, or the negotiations and intermediations fail to work, arbitration can be applied at local rural land contracting arbitration

83

organs, and resolutions can also be sought at the people’s court. No compensation fees will be granted during the negotiation, intermediation, arbitration

and prosecution period until agreement has been achieved through negotiation and intermediation, or the arbitration and prosecution have come into effect.

Article 30 By submitting to legally-approved land utilization requirements for construction projects, the owners and users of the requisitioned lands should handover the requisitioned lands. Any unit and individual should under no circumstances interfere, disturb or resist on any ground the utilization of land by such construction projects.

Article 31 The allocation compensation fees, together with the compensation standards for crops and attachments for the agricultural residents will be adjusted in time by the Administration Committee of the Experimental Zone and be publicized for implementation along with adjustments of relevant expense standards approved by municipal People’s Government.

Article 32 These Rules shall come into effect upon issuance. Previous prescriptions shall remain effective for legally-practiced compensation and allocation for land requisition before the implementation of these Rules.

84

Notice on Forwarding the Implementation Rules for Peasants Requisitioned of Land to Apply for Township Workers’ Basic Old-age Insurance

Notice on Forwarding the Implementation Measures for Guarantee of the Basic Cost of Living Allowance for Peasants Requisitioned of Land in Urban Areas of Hefei

Printed by Administration Committee of Hefei Xinzhan Comprehensive Development Experimental Zone

Document Issued by the General Office of the People’s Government of Hefei

HZB[2004]No.10

Notice on Forwarding the Implementation Rules for Peasants Requisitioned of Land to Apply for Township Workers’ Basic Old-age Insurance

To each department and each directly affiliated unit of the Municipal Government and each District People’s Government: The Implementation Rules for Peasants Requisitioned of Land to Apply for Township Workers’ Basic Old-age Insurance drafted by the Hefei Labor and Social Security Administration has been approved after being studied at the 22nd General Conference of Municipal Government, and such Rules are forwarded hereby to you for conscientious implementation.

General Office of the People’s Government of Hefei Feb.9, 2004

Implementation Rules for Peasants Requisitioned of Land to Apply for Township Workers’ Basic Old-age Insurance

(Hefei Labor and Social Security Bureau Dec.12, 2003) The following Implementation Rules herein have been constituted pursuant to prescriptions

of the Implementation Measures for Guarantee of the Basic Cost of Living Allowance for Peasants Requisitioned of Land in Urban Areas of Hefei (trial).

Article 1 Age limits for peasants requisitioned of land to be granted non-agricultural status are 16-45 for males and 16-40 for females. The applications for Township Workers’ Basic Old-age Insurance, to be made by applicants, can be transacted in a unified way by the collective economic organizations to which the applicants belong at one time within 60 days upon the completion of transfer from agricultural- to non-agricultural residence status.

Article 2 Acting out of free will, peasants requisitioned of land should make written applications to their governing collective economic organizations for township workers’ basic old-age insurance, and shall be definitely willing to give up guarantee of basic cost of living allowances for peasants requisitioned of land.

Article 3 Upon receiving written insurance applications made by peasants requisitioned of

85

land, governing collective economic organizations shall submit such applications to local employment and social security handling organs for relevant transactions. Insurance application beadrolls, after being confirmed by local employment and social security handling organs, will be reported to local financial departments.

With consideration to confirmation opinions of local employment and social security handling organs, the local financial departments will appropriate, RMB 18,000 per capita, from the special fund for basic living allowances for peasants requisitioned of land into finance accounts of municipal social insurance funds.

Article 4 Municipal social insurance handling organs will make an insurance payment record on a monthly basis for insured peasants requisitioned of land.

The base of payment for peasants requisitioned of land to enjoy township workers’ basic old-age insurance is 60% of the provincially average month wage of workers in the previous year. And according to prescriptions of township workers’ basic old-age insurance, the municipal social insurance handling organs will appropriate, month by month by 11%, from RMB 18,000 into the personal accounts of peasants requisitioned of land. This amount shall include the total old-age pensions paid by individuals (accounting for 7% of the individual payment base), and the transferred part of basic old-age pensions paid by employing units (accounting for 4% of the individual payment base).

Article 5 In the light of township workers’ basic old-age insurance system, When all the individually-owned RMB 6,000 has been appropriated into personal accounts on a monthly basis and the age of this specific peasant requisitioned of land has not reached the prescribed age limit (60 for males and 55 for females), this certain peasant shall carry on performing insurance payment liabilities.

For peasants requisitioned of land who have reached the prescribed age limit and have paid insurance fee for 15 years, basic old-age pensions can be granted on a monthly basis; for those have paid insurance fee less than 15 years, the social insurance handling organs will, at one time, pay the principal & interest of the saved amount in personal accounts to such people, and the basic old-age insurance will be terminated at the same time.

Article 6 For peasants requisitioned of land who have applied for township workers’ basic old-age insurance through their governing collective economic organizations, and then have been employed officially by employing units, the transfer and continuity transactions for the relationship of township workers’ basic old-age insurance shall be conducted by the employing units.

If the individuals or the employing units demand higher payment base, the increased part shall be paid by the individuals and the employing units according to regulations.

Article 7 For peasants requisitioned of land who have reached the prescribed age limit and have paid fees for township workers’ basic old-age insurance for 15 years, the employing unit shall make application to social insurance handling organs for retirement review & approval transactions. Basic old-age pensions can then be granted on a monthly basis, and can be calculated in the following formula

Monthly Basic Old-age pension=Basic Old-age pension + Personal Account Old-age pension

In the above formula, Basic Old-age pension is 20% of the provincially average month wage of workers in the previous year of retirement; the amount of Personal Account Old-age pension is obtained by dividing total saved amount in personal account when retirement

86

occurs with 120. Article 8 For peasants requisitioned of land who have not applied for township workers’

basic old-age insurance, but have applied for rural social old-age insurance, when they have reached prescribed age limit, they can enjoy relevant treatments respectively according to regulations of rural social old-age insurance system and the basic living allowances system for peasants requisitioned of land.

Article 9 Rural social old-age insurance must be abandoned, if any, before application for township workers’ basic old-age insurance can be made once and in a unified way by the collective economic organizations to which the peasants requisitioned of land belong.

Article 10 For application to abandon rural social old-age insurance, if any, the peasants requisitioned of land must make written applications to rural insurance handling organs who will payback the principal & interest of rural social old-age insurance fees paid by individuals, and the relationship of rural social old-age insurance will be terminated at the same time.

Article 11 Peasants requisitioned of land enjoy the same employment services as township labor forces. Peasants requisitioned of land may register at employment and social security services institutions to enjoy the same employment guidance and employment training services as township unemployed staff, as well as the same employment policies as township labor forces.

87

Document Issued by the General Office of the People’s Government of Hefei

HZB[2004]No.11

Notice on Forwarding the Implementation Measures for Guarantee of the Basic Cost of Living Allowance for Peasants Requisitioned of Land in Urban Areas of Hefei

To each department and each directly affiliated unit of the Municipal Government and each District People’s Government: The Implementation Measures for Guarantee of the Basic Cost of Living Allowance for Peasants Requisitioned of Land in Urban Areas of Hefei (trial) drafted by the Hefei Labor and Social Security Bureau, Hefei Land Resources Bureau and Hefei Financial Bureau has been approved after being studied at the 22nd General Conference of Municipal Government, and such Measures are forwarded hereby to you for conscientious implementation.

General Office of the People’s Government of Hefei Feb.9, 2004

Implementation Measures for Guarantee of the Basic Cost of Living Allowance for Peasants Requisitioned of Land in Urban Areas of Hefei (trial)

To guarantee the basic living of peasants requisitioned of land, and to better safeguard

social stability, the following Implementation Measures have been proposed to guarantee the basic cost of living allowance for peasants requisitioned of land in urban areas of Hefei.

I. Application Range and Objects (1) Application Range: Applicable to peasants living in urban areas who have been granted

non-agricultural status due to land requisition. For peasants requisitioned of land who have not been granted non-agricultural status,

the rural social old-age insurance shall apply. (2) Application Object: peasants requisitioned of land, older than 16 (including 16),

including volunteer soldiers in active service and students of various grades on campus. II. Payment Standards Payment standard for guarantee of basic cost of living allowances for peasants

requisitioned of land is RMB 18,000 per capita, to be collected from allocation compensations. To specify, RMB 6,000 will be paid by individuals; RMB 6,000 will be paid by collective economic organizations; RMB 4,000 will be used as regulative fund and RMB 2,000 will be reserved for risk provision.

III. Object Confirmation and Transactions The number and names of peasants requisitioned of land who are qualified to enjoy the

guarantee of basic cost of living allowances will be counted and reported in each district as a whole. According to the Law of the People's Republic of China on Land Contract in Rural Areas, the determination of objects for guarantee of basic cost of living allowances for

88

peasants requisitioned of land is to be discussed by country collective economic organizations or villager representative assembly, checked by countryside (town) government, studied and approved by district government. Then the name list, together with permanent residence certificate issued by public security department and individual ID cards (copies) should be submitted to municipal land resources administration departments for review and approval. The employment and social security handling organs in each district shall then be responsible for transactions for guarantee of basic cost of living allowances to grant basic living guarantees according to prescriptions.

IV. Means of Payment, Management and Utilization (1) Means of Payment During the transaction to grant non-agricultural residence status to peasants requisitioned

of land due to land requisition, guarantee fees for the basic living allowances shall be withheld at one time by municipal land resources administration departments from allocation compensations for land acquisition, and be deposited into the special fund accounts established by district financial apartments for guarantee of basic cost of living allowances for peasants requisitioned of land.

(2) Management and Utilization 1. The special fund accounts established by district financial apartments for guarantee of

basic cost of living allowances for peasants requisitioned of land will be under closed-management for dedication utilization, no sub-tenancy, appropriation, or occupation is allowed.

2. Value of such fund can be maintained and increased through means of bank saving or purchasing national debt etc. Such fund is not for direct investment, and can not be used for purposes of warranty or mortgage.

3. The municipal land resources administration departments shall be responsible to collect the guarantee fees for basic cost of living allowances for peasants requisitioned of land; district financial departments are responsible to manage and appropriate such fund; district employment and social insurance handling organs are in charge for the payment of such guarantee fees, as well as the establishment of accounts by village and individuals for recording and archiving purposes.

V. Payment Time and Standards (1) For peasants requisitioned of land who have reached a prescribed age limit, 60 for male

and 55 for female, the local countryside/township government or sub-district employment and social insurance organs will make applications to district employment and social insurance organs for drawing guarantee fees for basic cost of living allowances.

(2) Drawing time: for peasants requisitioned of land who have exceeded the prescribed age, the guarantee fees should be drawn in the next month following the one-time insurance payment; for peasants requisitioned of land who have not reached the prescribed age, the guarantee fees should be drawn in the next month following the completion of prescribed age.

(3) The standard of guarantee fees for basic cost of living allowances shall be RMB 100 per month, which shall appropriately be adjusted along with variations in factors like urban economic development and price indicators etc.

VI. Open and Management of Personal Accounts (1) To open a personal account District employment and social insurance handing organs shall, in a unified way, open

89

personal accounts for peasants requisitioned of land according to actually paid amount by individuals. The interest rate for personal accounts shall be the same as the one-year term deposit interest rate for urban and rural residences in the same period.

(2) To close a personal account If a peasant requisitioned of land is employed, the principal & interest of this personal

account can be retrieved with an application made by the applicant. The employing unit, if any, will proceed to help make the application for township workers’ old-age insurance transactions; in self-employment cases, relevant insurance application regulations for free-lancers in Hefei shall apply.

(3) Inheritance of Personal Account 1. In case of death of peasant requisitioned of land before drawing guarantee fees for basic

cost of living allowances, the amount to be inherited shall be the total principal & interest in personal account when such death occurs.

2. In case of death of peasant requisitioned of land during enjoying guarantee fees for basic cost of living allowances, the amount to be inherited shall be the balance of principal & interest in personal account.

(4) Payment rights and interests for guarantee fees for basic cost of living allowances shall not be transferred, mortgaged or used for loan repay. No false report or false claim is allowed. Legal proceedings will be undertaken for any infringement.

VII. Others (1) Peasants requisitioned of land, aged from 16-45 for males and 16-40 for females, may

also use their guarantee fees for basic cost of living allowances to apply for township workers’ old-age insurance.

For kids under 16 when land requisition was undertaken, existing regulations shall also apply, and the allocation compensation fee accounting RMB 10,000 shall be granted at one time.

(2) The baseline date for requisition allocation shall refer to the land requisition date approved by the People’s Government at provincial or above level.

(3) These Measures shall be enforced from Jan.1, 2004. Detailed implementation rules shall be framed by Hefei Labor and Social Security Bureau.

Hefei Labor and Social Security Bureau, Hefei State Land Resources Bureau Hefei Financial Bureau

Dec.12, 2003