Prepared by Guangxi Baise Development and Investment Group Co., Ltd. with the assistance of Beijing Enrimu Science & Technology Consulting Co., Ltd.

Transcription

1 Resettlement Planning Document Updated Resettlement Plan Document Stage: Final Project Number: March 2012 People's Republic of China: Guangxi Southwestern Cities Development Project Baise City Urban Road Network and Related Municipal Infrastructures Component and Longwang Bridge Component Prepared by Guangxi Baise Development and Investment Group Co., Ltd. with the assistance of Beijing Enrimu Science & Technology Consulting Co., Ltd. The updated resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB s Board of Directors, Management, or staff, and may be preliminary in nature.

2 Guangxi Southwestern Cities Development Project Baise City Urban Road Network and Related Municipal Infrastructures Component and Longwang Bridge Component Updated Resettlement Plan Guangxi Baise Development and Investment Group Co., Ltd. Prepared with Assistance of Beijing Enrimu Science & Technology Consulting Co., Ltd. 9 March

3 ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN Guangxi Baise Development and Investment Group Co., Ltd. (GBDIGCL), the implementation agency (IA), together with the assistance of the Beijing Enrimu Science & Technology Consulting Co. Ltd. (BESTCCL) has prepared and updated this full Resettlement Plan (RP) for the Baise City Urban Road Network and Related Municipal Infrastructures Component and Longwang Bridge Component in Baise City under the Guangxi Southwestern Cities Development 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, Guangxi Zhuang Autonomous Region and Baise Municipal Government as well as complies with ADB s policy on involuntary resettlement. This resettlement plan prepared and updated based on the feasibility study report (FSR), preliminary design, and measurement and socioeconomic surveys and detailed measurement survey, will be implemented after being approved by ADB. Baise City Project Management Office hereby confirms the content of this RP and will guarantee the land acquisition and resettlement and compensation budget being provided according to the provisions of aforesaid plan. Thank you very much for your great support and assistance on the Guangxi Southwestern Cities Development Project. Li Jianwen, Vice Mayor, Baise City Chair of Baise City ADB Loan Project Leading Group March

4 TABLE OF CONTENT ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN... 3 TABLE OF CONTENT... 4 LIST OF ACRONYMS AND MEASURES... 7 EXECUTIVE SUMMARY... 8 I. INTRODUCTION Background Description of the Project LAR Impacts of the Project II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT Measures Taken to Avoid or Minimize LAR Impacts Methods of LAR Impact Assessment Scope of LAR Impacts III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION Socioeconomic Profile of Baise City Socioeconomic Profile of Youjiang District Socioeconomic Profile of the Affected Area and APs Demographic Features of APs Residential Houses Land Use Financial Situation of Households Gender Analysis Gender Difference in Education Gender Difference in Occupation and Income Gender Perspectives on Resettlement IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE Public Participation Strategy Methods and Measures of Public Participation Public Participation during RP Preparation Women s Participation Information Disclosure Resettlement Information Brochure Distribution of the Resettlement Plan Public Participation Plan during RP Implementation V. APPEALS AND GRIEVANCE PROCEDURES VI. LEGAL FRAMEWORK AND POLICIES Applicable LAR Laws, Regulations and Policies ADB s Involuntary Resettlement Policies Related Laws and Regulation of PRC Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration, issued by State Council, October

5 6.3.2 PRC Land Administration Law Urban House Demolition Management Regulation of PRC Implementation Method of Guangxi Zhuang Autonomous Region for Land Administration Law Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC Gaps between ADB and Chinese Policies Compensation Criteria and Principles Entitlement Compensation Principles Compensation Rate VII. ENTITLEMENT MATRIX VIII RESETTLEMENT AND REHABILITATON PLAN Objectives and Principles of Resettlement Program Compensation and Rehabilitation Plan Resettlement Options and Plan Residential houses Non-Residential Structures Rehabilitation Plan for Affected Households by Permanent LA Employment Opportunities Generated by the Project Development of Tertiary Industry Social Insurance Project Related Income Generation Opportunities Provision of Technical Training to the APs Rehabilitation Plan of Ground Attachments Special Concerns during Resettlement Process IX. COST ESTIMATES Compensation and Resettlement Costs Annual Budget Flow of Fund X. LAR IMPLEMENTATION SCHEDULE Principles LAR Implementation Schedule XI. INSTITUTIONAL FRAMEWORK Project Resettlement Organizational Set-up Responsibilities Institutional Capacity Strengthening Assessment of Institutional Capacity Institutional Capacity Building and Training XII. MONITORING, EVALUATION AND REPORTING Internal Monitoring External Monitoring and Evaluation Objectives and Requirements of M&E Methodology

6 Major Tasks Reporting Requirements APPENDIX 1: Resettlement Information Booklet APPENDIX 2: TOR for External Monitoring and Evaluation

7 LIST OF ACRONYMS AND MEASURES AAOV Average Annual Output Value ADB Asian Development Bank AFs Affected Families AHs Affected Households APs Affected Persons BESTCCL Beijing Enrimu Science &Technology Co., Ltd. BHDAO Baise House Demolishment Administration Office BPMO Baise Project Management Office BLRB Baise Land Resource Bureau BMG Baise Municipal Government CNY Chinese Yuan DI Design Institute BMG Baise Municipal Government BP Bank Policies DMS Detailed Measurement Survey EA Executing Agency F Females FSR Feasibility Study Report GBDIGCL Guangxi Baise Development and Investment Group Co., Ltd. GDP Gross Domestic Product GZAR Guangxi Zhuang Autonomous Region HDAO House Demolishment Administration Office HHs Households IA Implementing Agency IMA Independent Monitoring Agency LA Land Acquisition LAR Land Acquisition and Resettlement LRB Land Resources Bureau M Males M&E Monitoring and Evaluation MLG Minimum Living Guarantee OM Operational Manual OP Operational Procedures PLG Project Leading Group 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 S&T Science & Technology ToR Terms of Reference US$ United States Dollar VCs Village Committees WF Women s Federation PDG Youjiang District Government km 2 Square Kilometer % Percentage mu Chinese area measure for land, 1mu = 1/15 ha (1 ha = 15 mu) CNY Chinese currency Yuan CNY 1 = 1/ 6.3 $US ($US 1 = CNY 6.3) 7

8 EXECUTIVE SUMMARY 1. The Baise Urban Road Network and Related Municipal Infrastructures Component is composed of 3.65 km of urban roads and related municipal infrastructures, including traffic lights, drainage, sewerage pipeline and landscaping, and the Longwang Bridge Component is composed of the Longwang Bridge with a length of m and related municipal infrastructures, including traffic lights, drainage, sewerage pipelines and landscaping. The Project owner is Guangxi Baise Development and Investment Group Co., Ltd. (GBDIGCL). 2. The Project will mainly involve land acquisition and structure demolishment in Dawan Village, Nabi Village and Dawang Village, Longjing District Street Administration Office, Youjiang District of Baise City. Based on most recent detailed measurement survey, a total of mu of rural collective land will be acquired permanently, including mu (83.801%) farmland. In addition, mu of state-owned land will also be acquired. The permanent land acquisition will affect 505 households with 2,933 persons. A total of 9,770 m 2 of residential houses will be demolished, relocating 38 households or 226 persons. The impacts have decreased because the engineering design has avoided residential structures demolition and also avoided the two villages of Luosuo and Liantang to be affected.the Project construction will demolish 2 enterprises with1,005 employees and 22, m 2 non-residential structures. Associated auxiliaries, basic infrastructures and special facilities will also be affected. The total numbers of the affected households and populations by land acquisition and resettlement (LAR) is 505 households and 2,933 persons, including 144 urban households with 483 urban populations, 361 rural households with 1,445 rural residents, and 1,005 staffs of Baise City Mining Machinery Manufacturing Plant and Baise City Grain Co.. Of the total affected households and populations, 10 households or 24 persons are vulnerable group in the Project area, including 7 households or 11 persons under five guarantees and 3 households with 13 persons are women-headed. 3. In order to avoid or minimize land acquisition and resettlement, there was close consultation with the local officials and village committees (VCs) during the preliminary and final Feasibility Study as well as preliminary design stages for the optimal and proper engineering schemes of the Project. 4. The compensation of the permanent land acquisition is based on the Land Administration Law of PRC, amended in 2004, Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004, Urban House Demolishment Management Regulations of PRC, GZAR Land Administration Law, GZAR Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, Notice of Social Safeguard Temporary Method for the Farmers Whose Land Acquired in Baise City, Notice for Acquisition Method of Collective Land in Urban District in Baise City, and Notice for Compensation and Resettlement Method of Collective Land and House Demolishment in Baise City. The RP was prepared to comply with ADB s Policy on Involuntary Resettlement. Based on the consultations with local governments and those affected, and general practice in Baise City, the resettlement principles established for the Project are: (i) land acquisition and involuntary resettlement should be avoided or minimized where feasible by developing and comparing a series of design alternatives; (ii) compensation and entitlements provided must be adequate to allow those affected to at least maintain their pre-project standard of living, with the prospect of improvement; (iii) land temporarily occupied and the period for disruption are to be kept to a minimum; (iv) all the people affected, legal and illegal, are to be taken into consideration and accounted for; (v) resettlement plan should be prepared and 8

9 implemented in accordance with state land rehabilitation policy, national economic and social development plans; (vi) all those affected will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans, and project timing; (vii) resettlement plan should be coordinated with such things as regional development, economic development and environmental protection; and (viii) practical and feasible measures should be formulated to restore the affected items; (ix) a preferential policy and assistance will be provided to vulnerable groups in such things as employment; and (x) close monitoring and timely actions will be carried out to identify and resolve any problems. 5. The people affected have been notified about the key elements of the updated RP which is based on the detailed measurement survey conducted in March On various occasions during meetings, interviews, focus group discussions, public consultation workshops, and community consultation meetings, local representatives have participated in the planning and concerns have been integrated into the RP. The updated resettlement information booklet will be distributed to affected villages and households before 20March The updated RP approved by Baise City Government will be redistributed to village committees by the end of March 2012 to anyone wishing to consult the document at the villages. At the same time the RP will be posted on the ADB website by the end of March The RP has been updated based on detailed measurement survey (DMS) made in March 2011 and will be disclosed to APs and submitted to ADB for review and approval. The Baise PMO and GBDIGCL will be responsible for supervising implementation, continuing public consultation, monitoring progress and responding to grievances. The grievance address procedures are well established and explanations are included in the RP and resettlement information booklets. 6. For people losing land, there are two resettlement options, respectively: i) cash or cash plus reconstruction land in resettlement sites ; and ii) cash or cash plus reconstruction house land in resettlement sites. The PMO, IA, RO, and local government will provide necessary assistance during LAR implementation. The measures for economic rehabilitation include: (i) provision of 320 person-years of employment opportunities the APs in labor force during the project construction and 70 public welfare job positions during operational phases; (ii) provision of social insurance, with 30% contribution from the local government and 70% contribution from rural collectives and farmers (The land lost farmers pay 20% based on the 40% of the average wage of the urban workers in last year); (iii) non-agricultural production, including self-employed tertiary businesses to rehabilitate the loss of income from agricultural farming for those families and population who will lose their land permanently for the construction of the Project, including 36 households with 93 APs for grocery store, 41 households with 115 APs for food catering service, 53 households with 186 persons for hairdressing salon, 35 households with 123 persons for dry cleaning, 62 households with 217 APs for transportation service in urban districts, 30 households with 144 APs for clothing shop, and 41 households with 110 APs for taxi service, 58 households with 196 APs for hotel service, 56 households with 196 persons for tourism business, and 93 households with 372 APs for other business ; (iv) reconstruction land allocation and development for profit dividends (70% of the dividends will go to the APs and 30% to the collective village to be used for pension and village public welfare activities) ; and (v) provision of technical training to 1,752 APs (labor force) to increase their skills to be employed in other institutions, enterprises and businesses. 7. For residential houses to be demolished, both cash compensation and cash plus provision of reconstruction house plot for self-construction by the APs will be adopted for this project. The households that have to be relocated will also receive a 9

10 relocation allowance. Compensation for ground attachments will be paid to the affected owners. 8. For the affected enterprises (Baise City Mining Machinery Manufacturing Plant and the Baise City Grain Co.), compensation for structures and relocation allowance will be provided to the owners of the demolished non-residential structures, and allowance for the lost of working days will be paid to the affected employees. Baise City Mining Machinery Manufacturing Plant will be relocated to the newly built Baise City Industrial Park and the Baise City Grain Co. will not be reconstructed. 9. The cost estimate for land acquisition and resettlement is CNY million or US$ million at the prices of 2011, including compensation for permanent land acquisition, temporary land occupation, residential house demolishment, non-residential structures demolishment, ground attachments, relocation allowances, basic infrastructures and special facilities, relevant land taxes, M&E, other costs, and contingency. The land acquisition and resettlement activities started in October 2011 and will be completed in June Construction will not take place before the APs are fully compensated and relocated, and all arrangements are made to commence the livelihood rehabilitation activities and the APs are registered for these. Internal and external monitoring of the RP implementation will be conducted to ensure successful implementation of the RP. 10

11 I. INTRODUCTION 1.1 Background 10. Baise City Urban Road Network and Related Municipal Infrastructures Component and Longwang Bridge Component are the two components under Guangxi southwestern Cities Development Project. According to "Master Plan of Baise City" (2004 ~ 2020), the spatial structure of urban development for Baise City is planned as: "one centre, two axes, two regions, and multi-groups". The Baise City Urban Road is the East-West trunk road to connect the main urban districts and industrial parks, and crosses the Echeng Group, Longjing Group, Liutang Industrial Park, Wutang Industrial Park, and Sitang Industrial Park. It not only bears the function of urban transport, but also the function of transportation joints with other cities. Transportation function is very important. 11. Because of the current transportation links are weak between the major urban districts and industrial parks in Baise City, the current road network hardly meets the needs of increased traffics in Baise City and the above mentioned groups, in particular the construction and development of Longjing Groups and industrial parks which will generate tremendous traffic flow and greatly increased internal and external transportation needs. The urban road network component will improve the road network in Baise City, strengthen the communication of the major urban districts and industrial parks and within the groups. The fast and convenient transportation system will play a role to stimulate the economic development, and promote the formation of the regional economy and development of land use along the road. 12. Longwang Bridge is located in the southeast of Youjiang District, Baise City, which is an important bridge of the proposed urban road. It connects the Chengnan Ring Road of Longjing District in the north bank, Xinggang Avenue and Chengdong Road of Longjing District. It s an important bridge connecting Henan New District and Chengdong District, and it is also the fast lane to connect Chengxi Old District and Henan District, Chengdong Industrial Zone, highway entrances / exits, ports and transportation hub. 13. Currently there are only two bridges across Chengbi River connecting Echeng District and Yinglong District, namely Chengbi Bridge and Zhongshan Bridge, of which Chengbi Bridge has already become dangerous bridge and needs to be demolished for reconstruction. Currently the construction is been undertaking. There are Bailin Bridge and Nabi Bridge across Youjiang River connecting Hexi District and Henan District, of which Bailin bridge was strengthened in 2007 and limited load passage, and only Layu Bridge has been constructed and opened to traffic in 2009 across Youjiang River connecting Longjing District and Yinglong District. As limited number of bridges across Youjiang River and Chengbi River and some of the bridges were built long time ago, some bridges are dangerous or limited load passage, it is extremely inconvenient for the traffic exchanges among the various groups of the city. This is an important reason to cause urban traffic congestion. Therefore the key solution is to improve the construction of urban road network and construct cross-river bridge to solve the current traffic problem in Baise City. The Project construction will also meet the demands of the rapid economic development and the growing traffic flow. 1.2 Description of the Project 14. Baise City Urban Road Network starts from the head of Bailin Bridge of the 11

12 Huandao (turnaround) Road (reformation of the Bailin Bridge is not included in the design scope of the project) and through the Henan District and ends at Longwang Bridge. The scope of the Project construction includes road, bridge and culvert, drainage, traffic, greening, and lighting engineering components. Road level is Class I, the calculated speed is 60 km/h. The designed scope of the main line is K1+483~ K (The K0+513~K1+483 section of Bailin Bridge is not included in the design scope of the project), the width of red line is 50 m with total length of main line at km. It ends at Longwang Bridge where ramp A and B are designed, the width of the ramp red line is 16 m, of which the length of ramp A is km, and the length of ramp B is km. Figure 1-1 is the proposed Baise City Urban Road Network and Urban Master Plan Map. Figure 1-2 is the revised layout map of the road. The total Project investment is CNY million, of which 65% will be financed by ADB loan, and 35% local counterpart fund. The Project is expected to be started from March 2012 and will be completed by July 2013, with an expected total of 17 months construction period. 15. As an independent bridge, Longwang bridge component does not contain approach roads and access ramps (All approach roads and ramps are included in the "Baise City Urban Road Network Component"). The scope of the engineering works includes the Longwang main and approach bridge. The bridge starts at the Chengnan Road at Henan New District and ends at the Donghuan Road, Chengdong District. The bridge is m long, of which the length of the main bridge is 343 m long and 42 m wide. The total area of main bridge deck is 13,720 m 2. The approach bridge is 220 m long and m wide. The total area of bridge deck is 8,800 m 2. The foundation and the volume of concrete masonry piers is 20,962 m 3. The main technical standards for the construction of Longwang Bridge are as follows: 1) Road grade: urban trunk road Class I; 2) Designed speed: 60 km/h; 3) Number of lanes: two-ways with six-lanes; 4) Design load: urban Class-A. Figure 1-3 is the layout of Longwang Bridge. The total investment of Longwang Bridge Component is CNY million, including CNY million (65%) of ADB loan, and CNY 80.2 million (35%) of self-financing. The Project is expected to start from March 2012 and will be completed by the July 2013, the total expected construction period is 17 months. 12

13 Figure 1-1: Proposed Urban Road Network in Relation to Urban Master Plan 13

14 Figure 1-2: Revised Layout Map of the Road 14

15 Figure 1-3:Layout Map of Longwang Bridge 15

16 1.3 LAR Impacts of the Project 16. Within the ROW of Baise Urban Road Network, the land use includes paddy land, dryland, vegetable land, orchard land, wood land, greening land, and waste land. The fish pond is scatteredly distributed along the road. Within the ROW, there are also some structures. Nearby the Longwang Bridge site, the land use is characterized by the dryland, vegetable land and orchard land. The scope of the Project impacts is mainly determined by the measurement survey on the basis of the FSR and detailed measurement survey. The construction of the two components will involve permanent land acquisition, temporary land occupation, residential structure demolishment, non-residential structure demolishment, auxiliaries, and basic infrastructures and special facilities. 17. The permanent land acquisition involved will be mainly due to the land use for the road, bridge structures, approach road foundation, and municipal pipeline. The temporary land occupation is mainly for the use of construction access road and material storage. In total, the permanent land acquisition of the Project to be affected is mu of rural collective land. Of the total land to be acquired, Dawan Village accounts for mu (including mu paddy land, mu dryland, mu vegetable land, mu orchard land, mu greening land, 40 mu fish pond, mu waste land and mu homestead), accounting for 89% of the total land area to be acquired; Nabi Village mu (including mu paddy land, 3.12 mu dryland, 7.40 mu vegetable land, 2.60 mu orchard land, and mu homestead, accounting for 6% of the total land area to be acquired; and Dawang Village mu (including mu paddy land, mu dryland, and mu vegetable land), accounting for 5% of the total land area to be acquired. In addition, the Project will also acquire mu state-owned lands, including the land of the Baise Mining Machinery Manufacturing Plant and the Baise City Grain Co. Due to the permanent land acquisition, a total of 505 households or 2,933 persons (144 urban households and 483 urban populations and 361 rural households and 1,445 rural populations and 1,005 workers) will be affected. 18. The land to be acquired for the Project only accounts for 2.69% of the total land area and 2.368% of total farmland area of Dawan Village, Nabi Village and Dawang Village. As a result, it can be seen that the impact of the land acquisition to the rural collective is small. However, 193 households will lose 10%-30% of their land, 75 households will lose 30%-50% of their land, and 22 households will lose 50%-70% of their land. The impacts are significant. Table 1-1 presents that land loss impact by percentage. Due to the land loss, associated proportion of income will also be lost. Therefore, the income rehabilitation for the APs has been taken into consideration of the RP. Table 1-1: Land Loss Impact by Percentage Dawan Village Nabi Village Dawang Village Total < 10% > 10% - 30% > 30% - 50% > 50% - 70% TOTAL The land use for construction road access and materials storage will temporarily occupy mu of land, including mu (20.5 mu dryland and mu waste land) for the urban road network construction and 15 mu dryland for the Longwang Bridge. 16

17 20. Because of the land acquisition, 9,770 m 2 of residential structures will be demolished, including 2,514 m 2 brick-concrete structures, 3,946 m 2 brick-tile structure, and 3,310 m 2 simple structures. In total, 38 households or 226 persons, all those persons are from rural area. All the demolished structures for the 38 households have the house property certificates. 21. The Project will also demolish the non-residential structure of 2 enterprises (Baise Mining Machinery Manufacturing Plant and Baise City Grain Co.) with 22, m 2 brick-concrete structures, including 18, m 2 structures of Baise Mining Machinery Manufacturing Plant and 4, m 2 structures of Baise City Grain Co.) with a total of 1,005 staffs to be affected. 22. In summary, the Baise Urban Road Network and Longwang Bridge Components will affect 505 households (including 144 urban households and 361 rural households) with 2,933 persons (including 483 urban population, 1,445 rural population) and 1,005 staffs of Baise Mining Machinery Manufacturing Plant and Baise City Grain Co., of which 10 households or 24 persons are vulnerable group in the Project area, including 7 households or 11 persons living under five guarantees and 3 households or 13 persons are women-headed. In total, the permanent land acquisition is mu and temporary land occupation is mu, the residential structure is 9,770 m 2 and the non-residential structure of enterprises is 22, m Based on the design of the Project construction map and the detailed measurement survey (DMS), the RP has been updated and it will be submitted to ADB for review and approval. 1.4 Preparation and Update of RP 24. In line with the ADB s Involuntary Resettlement Policy and the relevant laws, regulations and guidelines issued by the governments of People s Republic of China, Guangxi Zhuang Autonomous Region and Baise City, the RP has been prepared and updated by Beijing Enrimu Science & Technology Co. Ltd. (BESTCL) on behalf of Baise City Development and Investment Co., Ltd. (GBDIGCL). The updated RP will be reviewed and approved by Baise Municipal Government (BMG) and ADB. 25. The RP preparation is based on the following relevant project documents and legal documents, and the results of public participation and consultations. (1) Design Basis: Feasibility Study Report; Detailed Design Report; Statistic Yearbook of Baise City in 2008; Urban Development Master Plan of Baise City; and, Eleventh-Five Years Plan of Baise City. (2) Legal and Policy Basis Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004; Land Administration Law of the PRC, amended in 2004; Implementation Regulation for Land Administration Law of PRC; December 1998; 17

18 Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93]; Temporary Regulations on Farmland Acquisition Tax of PRC, 2008; GZAR Land Administration Law, 2001; Management Law of Urban Real Estate of PRC, 1994; Guidelines for Valuation on Urban House Demolishment of PRC; 2004; Urban Housing Demolition Management Regulations of the PRC issued in 2001; Temporary Regulations of Farmland Acquisition Tax, 2008; Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, 2003; Decree 15 of Guangxi Zhuang Autonomous Region People s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region; Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52]; Implementation Methods of GZAR farmland occupation tax [Guizhengfa (1987) 88 Hao 59]; Notice of Social Safeguard Temporary Method for the Farmers Whose Land Acquired in Baise City, 2009; Notice for Acquisition Method of Collective Land in Urban District in Baise City, 2005; Notice for Compensation and Resettlement Method of Collective Land and House Demolishment, 2008; Response on Approval for the Compensation Standards of the Land Acquired in Industrial Park, 2006; ADB s Involuntary Resettlement Policy, 1995; Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998; Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; and, OM Section F2 Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, (3) Public Participation and Community Consultation Activities Visits to the Project affected areas; Consultation meetings with district and township government leaders, representatives, and APs between May and September 2009; Sample socioeconomic survey of affected households in July and August 2009; Land acquisition and resettlement survey information between July and August 2009; Focus group discussion during ADB PPTA phase between July and August 2009; Consultation workshops on environment and resettlement between May and July, 2009; and, Detailed measurement survey in March The goal of RP includes: i) Through optimal engineering design to avoid or reduce the impacts of land acquisition and resettlement; ii) Resettlement Plan is 18

19 based on the land acquisition and resettlement indexes and the compensation standard, and the goal is to increase the living standards of the APs, at least not worse-off; iii) Development resettlement is promoted; iv) APs are encouraged to participate in the Resettlement Plan preparation, in particular women; and v) Women s rights and interests should be fully taken into consideration of the Project. 19

20 II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT 2.1 Measures Taken to Avoid or Minimize LAR Impacts 27. To avoid or reduce land requisition and resettlement (LAR) impacts to the minimum, alternatives have been carefully reviewed and the optimal option has been adopted for the Baise Urban Road Network and Related Municipal Infrastructures Component and Longwang Bridge Component. By taking into consideration of reducing land acquisition and resettlement impacts, and the life and property security of the residents in the Project Area, the mitigation measures to reduce the LAR impacts have been proposed: 1) strictly control the scope of land acquisition through coordinated surveying and mapping; and 2) avoid the intensive house plot, forest, communication areas, and institutions, enterprises and shops as much as possible. As a result, Option II has been selected as the option of the Project. Table 2-1 is the alternative comparison of Option I and Option II to minimize LAR impacts on collective-owned land within ROW. 28. Originally for Option I, on the left of road section +760~K0+860, it is Huafu Real Estate Community of Youjiang District. In order to avoid the demolition of buildings within the community, Option II has chosen that the road center line moved about 7 m from the old road center line. The road crosses Jiangbin Road, and then Youjiang goes into Henan District at the site of old Bailin Bridge. It is 2 m distance between the centerline of the road and the edge of old bridge. It crosses ring island road at east bank. The scheme has been optimized in comparison with the originally planned line. For Option I, the planning line is close to the detention, and passes through the living quarter of Baise City Mining Machinery Manufacturing Plant and needs to demolish the residential building. After coordination with the Construction and Planning Commission and relevant departments, the optimized scheme (Option II) moves toward the north, in turn avoid the detention and passes through the production building of Baise City Mining Machinery Manufacturing Plant (to be moved to Baise City Industrial Park). By this way, it remains the living quarter of the plant at the right side of the road and avoid larger amount of structure demolishment. Meanwhile, it also avoids the removal of dam head of Longjing Reservoir. 29. The original approach bridge of Longwang Bridge (Option I) passes through the middle of Dawa Village and Podou Tun. It will involve a large quantity of structure demolition. In order to ensure the smooth construction and reduce the demolition, Option II moves the bridge site to the south to avoid the house demolition as much as possible. According to the above principle, the south bank (Hedong District) of the originally planned bridge site moves to the west. In addition, considering the connection of Chengdong District Industrial Park road network planning and access road of the port entrance, and try to avoid the house demolition, the bridge foundation site move to the river bank at the Hedong shore, thus it avoids the large quantity of structure demolition. Table 2-1: Alternatives to Reduce the Collective Land Acquisition within ROW Option I: Before Measures Taken Option II: After Measures Taken House Land House Land AHs AHs (no.) APs (no.) Demolishment Acquisition APs (no.) Demolishment Acquisition (no.) (m 2 ) (mu) (m 2 ) (mu) Road 886 (13)* 3,721 81, ,585 32, Bridge 243 1,020 17, Total 1,129 (13) 4,741 98, ,933 32,

21 Note: * The scheme will demolish 81,285 m 2 structures, including 2,049 m 2 shops. 2.2 Methods of LAR Impact Assessment 30. The physical identification of impacts are mainly relies on the statistical data obtained from the relevant government organizations, questionnaires, measurement survey, and discussion with the APs during field investigation, site visits, meetings, individual interviews, etc. 31. Between June and August 2009, under the supervision of PMO and IA, the Jiangzhou District Government and village committees (VCs) carried out full-scale property and socioeconomic surveys to obtain basic data and prepare the RP. In March 2011, detailed measurement survey was conducted. The survey is carried out to clarify the quantity and number of the properties affected by the Project. This has provided basic data for the scope of the Project impacts, the calculation of losses caused by LAR, socioeconomic impacts, planning on livelihood restoration of the APs, budget, and monitoring and evaluation. 32. The Project will affect land, house structures, enterprises, auxiliaries, and basic infrastructures and special facilities. The quantity and category of the acquired lands and demolished structures were surveyed with the participation of the APs. Village committees and representatives of the villagers were consulted on compensation standards and resettlement plan for land acquisition and resettlement. 2.3 Scope of LAR Impacts Summary of Land Acquisition 33. According to the identified impact, the scope of the land acquisition and resettlement of the Project, including permanent land acquisition, temporary land occupation, structure demolishment and non-structure demolishment as well as the number of affected households and populations is summarized in Table LAR Impacts by Type of Losses Permanent Land Acquisition 34. The Project will acquire mu of the collective-owned land and mu of state-owned land. A total of 505 households with 2,933 persons will be affected. Table 2-3 provides the impacts of permanent land acquisition within ROW. 21

22 Table 2-2: Summary Land Acquisition and Resettlement Impacts City Administrative Jurisdiction Street Community Urban Road Network Youjiang Village Total Area (mu) Permanent Land Acquisition State Land (mu) Collective Land (mu) AHs / Affected Unit (no.) APs Temporary Land Occupation Total Area (mu) AHs APs Residential Structure Demolishment Total Area (m 2 ) AHs APs Demolishment Non-Residential Structure Area of Structure (m 2 ) Affected Unit (no.) Total AHs and APs by LA & Demolishment APs AHs APs Dawan Longjing , Nabi ,150 4, ,150 Non-Residential (2) 1,005 22, ,005 Structure 3 2 1,005 Subtotal (2) 2, , , , (2) 2,585 Longwang Bridge Dawan Youjiang Longjing Dawang Subtotal Note: TOTAL , , , , ,933 1 A total of 93 households or 430 persons in Dawan Village will be affected by both Urban Road Network component and Longwang Bridge component. 2 The AHs and APs are affected by house demolishment will also be affected by permanent land acquisition. 3 In Dawan Village and Nabi Village, a total of 38 households or 226 persons will be affected by both residential structure demolishment and permanent land acquisition. 3 A total of 1,005 persons from the enterprises will be affected by both the permanent acquisition of the state-owned land and the demolition of non-residential structures. 7 The total number of affected persons by the Urban Road Network covers 1,005 persons to be affected by non-residential structure demolishment. Of the total affected households and populations, 421 households or 2,585 persons will be affected by both permanent land acquisition and house demolition. 22

23 Table 2-3: Impacts of Permanent Land Acquisition for Urban Road Network and Longwang Bridge Components Permanent Land Acquisition (mu) Total AHs and APs by LA (no.) Collective Land AHs APs District Village State Paddy Dry Vegetable Wood Orchard Green Fish Waste Home- Total Land Urban Rural Total Urban Rural Total Land Land Land land Land Land Pond land stead Urban Road Network Dawan Youjiang Nabi ,150 Enterprises (2) 1,005 Subtotal (2) 483 1,097 2,585 Longwang Bridge Youjiang Dawan * * 0 * * Dawang Subtotal Total (2) 483 1,445 2,933 * Note: The number of households and persons affected by Longwang Bridge component is included in that of the Urban Road Network component. 23

24 Site Location of Longwang Bridge 35. The permanent land acquisition wasstarted in May Up to 30 November 2011, a total of 154 households have signed the agreement of permanent land acquisition, and mu of rural collective land have been acquired. GBDIGCL has paid CNY million to the Baise Land Resources Bureau (including land compensation, resettlement subsidy and standing crops as well as related land taxation). BLRB retained CNY million as land related taxes which should be paid to the land resources bureau by GBDIGCL, and paid remaining CNY million to the VCs as payment for land compensation, resettlement subsidy and standing crops. The VCs will keep a proportion (usually about 30%) of the land compensation amount (CNY million) to them as development fund, i.e. for the development of reconstruction land, and the rest proportion will be allocated to the APs based on the village meetings to decide how to use and allocate the fund. Up to date, the land compensation has been paid to the VCs, but the land compensation proportions to remain and allocate to APs hasn t be discussed and determined yet. After receiving CNY million by the VCs, the VCs have made the full compensation payment of the resettlement subsidy and standing crops totaled at CNY million to the affected people according to the proportion of their land loss. The actual compensation standards are the same with the ones in the RP. Dawan VC made the payment to the APs between May and June 2011, and Dawang VC in May Based on the interviews with the APs, they are satisfied with the compensation standards, and no issues involved and remained. Table 2-4a provides the status of actual land acquisition and disbursement and Table 2-4b for details: Table 2-4a: Status of Actual Land Acquisition and Disbursement Retained Total Land Land Compensation HHs Signed Name of Compensation Related Acquired Payment to VC Agreement Village Payment to Taxes by (mu) (CNY) (No.) BLRB (CNY) BLRB (CNY) Compensation Payment to APs (CNY) Urban Road Network Dawan ,328, ,982,417.53* 20,998, ,966, Nabi Enterprises Longwang Bridge Dawan Dawang ,293, ,162, ,511, TOTAL ,621, ,982, ,161, ,478,

25 Table 2-4b: Status of Actual Land Acquisition and Disbursement Permanent Land Acquisition (Mu) Collective Land District Village Name Vegetable Wood Orchard Greening Paddy Land Dryland Fish Pond Wasteland Homestead Land Land Land Land State-Owned Land (Unit Land) Urban Road Network Dawan Youjiang Nabi Enterprises Subtotal Longwang Bridge Youjiang Dawan Dawang Subtotal TOTAL TOTAL 25

26 Temporary Land Occupation 36. The Baise Urban Road Network and Related Municipal Infrastructure Component will involve mu of land (including 20.5 mu dryland and mu waste land) to be occupied temporarily. The Longwang Bridge Component will temporarily use 15 mu of land. There are spaces in the east of Longjing bank and in the west of Yinlong bank, which can be used temporarily. A large number of dryland near the bridge site can be used temporarily. A total of mu land (35.5 mu dryland and mu waste land) will be temporarily occupied by the construction of the Urban Road Network Component and Longwang Bridge Component. Table 2-5: Impacts of Temporary Land Occupation Village Dry Land Wasteland AHs (no.) APs (no.) Total (mu) (mu) Urban Rural Urban Rural Urban Road Network Dawan Nabi Subtotal Longwang Bridge Dawan Subtotal Total Residential House Demolishment and Associated Auxiliaries 37. Within the ROW, the Project will demolish 9,770 m 2 residential structures with 38 households with 226 persons to be relocated. All of the structures have certificates. In addition, associated auxiliaries, basic infrastructures and facilities will also be affected. Table 2-6 provides the area of residential structure and associated auxiliaries demolishment. The area of house ranges from 30 m 2 to 390 m 2, with average at m 2 per household. 26

27 Table 2-6: Demolishment of Residential Structures and Associated Auxiliaries Residential House Demolishment (m 2 ) Auxiliary Demolishment AHs and APs (no.) Items Brick- Fenced Wall Fruit Tree Tomb AHs APs Brick-Tile Simple Total Concrete (m 2 ) (no.) (no.) Urban Rural Urban Rural Urban Road Network Dawan 1,269 2,434 1,817 5, Nabi 1,245 1,512 1,493 4, Total 2,514 3,946 3,310 9, Note: Longwang Bridge does not involve house demolishment. 27

28 Table 2-7: Scope of Residential House Demolishment (N=38 HHs) Scope of Residential House Demolishment AHs % <10 m 2 0 0% 11 m 2 20 m 2 0 0% 21 m 2 30 m % 31 m 2 40 m % 41 m 2 50 m % 51m 2 60 m % 61 m 2 70 m % 71 m 2 80 m % 81 m m % > 100 m % TOTAL % Note: All above 38 households will be relocated. 38. The house demolition was started in May Up to 30 November, 2011, 5 households have signed house demolition agreement, which mainly involved in simple houses or simple sheds, totaling m 2. According to the evaluation of different construction materials, the compensation totals CNY147,389 for the 5 households, which includes the compensation for structure and auxiliaries. Based on it, a total amount of CNY147,389 has been paid to the APs. However, no demolition has incurred so far. Based on the current investigation, the APs have no objection to the compensation standards and have accepted the compensation payment. So far, no issues and problems of LAR have occured Demolishment of Non-Residential Structures 39. In total, 2 enterprises will be affected by the Project. Due to the permanent land acquisition of mu, 22, m 2 brick-concrete structures will be demolished. Table 2-8 provides the impact of the enterprises. Table 2-8: Demolishment of Non-Residential Structure Nature Units Name Structure to Be Affected Worker Total Demolition (m LA (mu) Construction ) (no.) Area (m 2 Brick- ) Total Total Male Female Concrete Baise Mining Machinery , , , Manufacturing Enterprises Plant Baise City Grain Co , , , Note Relocated and settled in Baise City Industrial Park Demolition without reconstruction Total , , , , Note: The area of state-owned land acquisition is included in the scope of permanent land acquisition. 40. Baise City Grain Co., formerly Baise Grain Transport Team was closed in 2005, and movable equipment was sold, and all staffs were dismissed. According to the corporate restructuring reform policies of PRC in 2000, all the dismissed staffs 28

29 were compensated as one-time payment based on the length of the time they have worked for the enterprise, and they have found their own new livelihood. For the 105 persons remained to look after the warehouse structures and other matters in the company, they will be resettled in accordance with the relevant laws and regulations of corporate staff dismissal in Baise City. Each month, they will get their current salary ranging from CNY 300 to CNY 400 for their living Basic Infrastructures and Special Facilities 41. Some basic infrastructures and special facilities will be affected also. Table 2-9 are the impacts of affected basic infrastructures and special facilities. Table 2-9: Affected Basic Infrastructures and Special Facilities No. Infrastructure and Special Facilities Unit Number 1 Road light poles No Telephone booth No. 3 3 Transformers No. 3 4 Water culvert m 1,357 5 Sighs No. 4 6 Hydrants No. 5 7 Statues No. 2 8 Power hafnium pole No Telecommunication line hafnium pole No Inspection well No Water pipes m 4, Sewer pipes m 3, Communication line m 3, Low voltage power line m 3, High voltage power line m 4, Underground cable m Underground fiber optic cable m Affected Households and Population 42. In summary, the Project will acquire part of land in 3 villages of Longjing Street Administration Office, Youjiang District, and affect 505 households and 2 enterprises, totaling 2,933 persons. Table 2-10 is the summary of the affected households and populations, of which 217 households (42.97%) with 1,258 persons (42.89%) are Zhuang minority, and 2 households (0.40%) or 5 persons (0.17%) are Yao. 29

30 Table 2-10: Summary of Affected Households and Populations Permanent Land Temporary Land Administrative Jurisdiction Acquisition Occupation Street AHs/Affected City Village Community Unit (no.) Urban Road Network Youjiang Longjing (unit: no.) Residential Structure Demolishment APs AHs APs AHs APs Demolishment of Non-Residential Structure Affected Unit APs (no.) Total No. of AHs and APs AHs/Affected Unit (no.) Dawan Nabi 328 1, ,150 Non-Residential Structure (2) 1, ,005 (2) 1,005 Subtotal 421 (2) 2, ,005 Longwang Bridge APs 421 (2) 2,585 Dawan 3 Youjiang Longjing Dawang Subtotal Total 2, , (2) 2,933 (2) Note: 1 A total of 93 households or 430 persons in Dawan Village will be affected by both Urban Road Network component and Longwang Bridge component. The number of households and persons affected by Longwang Bridge component is included in that of the Urban Road Network component. 2 The number of households and persons affected by temporary land occupation is included in the numbers affected by permanent land acquisition. 30

31 Impacts on Vulnerable Groups 43. Of the total affected households by the Project construction, 10 households (1.98% of the total 505 households) and 24 persons are classified as vulnerable families. The type and quantity of vulnerable groups is presented in Table All of the total affected vulnerable households are both affected by land acquisition and by demolition of residential structures. Table 2-11: Type and Quantity of Affected Vulnerable Groups Dawan Village Dawang Nabi Village Vulnerable Groups Type (bridge) Village HHs APs HHs APs HHs APs Five Guarantees Family Household Living Under the Minimum Living Security Line Female-headed Households Total Note: 1 Families Given/With/Receiving/Enjoying Five Assurances/promises; and, 2 Households living under MLG are classified as the poor households Impact Analysis Land Loss 44. The Project involves mu of permanent land acquisition, of which mu are state-owned land and mu collective-owned land. Table 2-12 provides the ratio of land loss within ROW. 45. Within ROW, partial collective land of 3 villages will be acquired, and 7.80%, 0.42% and 0.40% of village collective land and 6.737%, 0.336% and 0.416% of village collective farmland will be lost in Dawan Village, Nabi Village and Dawang Village, respectively. The land loss analysis is based on the loss of farmland and associated income loss. Table 2-13 provides the impact analysis of land loss. Table 2-12: Land Loss Analysis of Permanent Land Acquisition by Village Ratio of Land Before Land Acquisition Land Use by the Project Loss Village Total HHs (No.) Total APs (No.) Total Land Area (mu) Of which Farmland (mu) AHs (No.) APs (No.) Total Land Area (mu) Of which Farmland (mu) Total Area (%) Farmland area (%) Remaining Farmland (mu) Dawan 737 3,415 6,290 6, , Nabi 456 1,967 8,140 7, , Dawang 381 1,450 6,122 5, Total 1,574 6,832 20,552 19, , , Note: Affected persons do not include the staff affected by permanent land acquisition from the enterprises. 31

32 Table 2-13: Land Loss Impact Analysis on Households No. Item Dawan Village Nabi Village Dawang Village I. Impacts 1 Affected Households by LA (No.) Affected Rural Population by LA (No.) 430 1, Collective Land Acquisition (mu) Per capita farmland (mu) before LA Per capita farmland (mu) after LA Percentage of land loss (%) 7.80% 0.42% 0.40% 7 Percentage of Income loss (%) 6.47% 0.32% 0.34% II. Income resources 8 Agriculture (CNY10,000) (%) 83% 76% 83% 9 Second industry (CNY10,000) Third industry (CNY10,000) Total Household Average Annual Disposable Income 13,976 18,000 12,537 III Percentage of Land Loss by AHs 12 < 10% > 10% - 30% > 30% - 50% > 50% - 70% > 70% - 90% > 90%-100% % Total IV Percentage of Land Loss by APs 20 < 10% > 10% -30% > 30% - 50% > 50%-70% > 70% - 90% > 90%-100% % Total 430 1,

33 III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION 3.1 Socioeconomic Profile of Baise City 46. Baise City is located in the west of GZAR, the largest city in GZAR. With the location at east longitude ' ' and north latitude 22 51'-25 07'. The city connects in the west with Yunnan, adjacent in the north with Guizhou, in the east next to the capital city of Nanning, and in the south borders with Vietnam, the border line is 365 km long. It is the joint of Yunnan, Guizhou and Guangxi provinces as central urban area. It is the southwest access of China to the sea of the Pacific region as the "golden corridor". The total population is million in Baise City, with million labor force, of which 314 thousand are urban labor force and million rural labor force, and million transferable labor force. The six ethnic minority groups of Zhuang, Yao, Miao, Yi, Gelao, and Hui account for 87% of the total population. 47. The total land area is more than 3.62 million hectares in Baise City, with more than 2.69 million hectares usable land. Of the total land area, the mountainous areas account for 90.98%, plateaus and plains 5.8%, farmland 12.5%. Baise is rich in forest resources and forest products, the city's forest land use area is million hectares, the forest area million hectares, and timber stock more than 44 million cubic meters. It is an important timber base in GZAR. The forest coverage rate reached 58.6%. It is rich in wood oil, tea oil, star anise, Badu bamboo shoots, pekoe tea, tobacco, etc. It is main production base for star anise and wood oil. The forest and sideline products are ranked the top positions of GZAR. Youjiang Valley is a famous base of sub-tropical fruit, and is the base for vegetable transferred from south to north and the "mango township". 48. Rich in electricity resources, water resources can be developed up to 6 million kilowatts. Of which more than 4.50 million kilowatts have been developed. The established major power stations include: Tianshengqiaoyi, Class II hydropower station with installed capacity of 2.52 million kilowatts, Baise hydro junction with installed capacity of 540,000 kilowatts, Pingban hydropower station with installed capacity of 405,000 kilowatts, and Tianyang Thermal Power Plant and Tiandong Thermal Power Plant with installed capacity by 0.27 million kilowatts. Baise has wide variety of minerals, bauxite, copper, crystal, lignite, gold and other reserves ranks first in GZAR, and rich in oil and natural gas. Bauxite reserves are more than 1 billion tons, accounting for more than 50% of the total national reserves. Baise is striving to become important aluminum industrial base in China and even Asia by taking the advantage of local resources. 49. Baise area has a long history, beautiful mountains and rivers, cultural landscapes and colorful ethnic customs, and great potential of tourism resources. It is one of China's 12 key red tourism scenic spots. There are state-level scenic spot - Baise Rebellion Memorial Hall; and world unique of Jingxi Canyon Valley and Tiankeng (heaven pit), Chengbi River, etc. 50. In recent years, social economy has been developed rapidly in Baise city. The major agricultural products are vegetables, fruits, tobacco, oil, tea, etc. Major industrial products are coal, paper, hydropower, thermal power, sugar, ferro alloys, bauxite (aluminum) and alumina. In 2008, the GDP of the city reached CNY billion; the contribution of the first, second and third industry to economic growth rates was 5.3%, 74.2% and 20.5% respectively, and the fiscal revenue was CNY 5.51 billion. The whole social fixed assets investment was CNY billion, the urbanization rate has reached 31%. The urban residents per capita disposable 33

34 income was CNY 13,169; the farmers per capita net income was CNY 2,820. The newly added urban employment was 19,900 persons, the registered urban unemployment rate was 3.1%. The natural growth rate of population was 6.8% Socioeconomic Profile of Youjiang District 51. The Project-affected area, Youjiang District is located in middle of Baise City. It is the political, economic and cultural center, and is a relatively developed area in the City. It administers 4 towns, 8 townships, 5 streets administration office, 116 administrative villages, and 855 tuns. Inhabited by the Zhuang, Han, Yao, Hui, Miao, and other nationalities, in 2008, the total population in Youjiang District reached 345,000 people, of which the urban population was 185,000 people. The administrative area is 3,713 square kilometers, of which urban area is 25 square kilometers. It is divided into three groups of Chengxi, Henan, and Chengdong Districts. Chengxi is the old district, with concentration of most business, administration, schools, hospitals, and other important institutions, which is the center of Youjiang District. Chengdong District is the newly developed area, currently some institutions, industries and business are around the Baise Railway Station as the center, the new urban district has reached a certain scale. Henan District is the planned new districts, with the functions of administration, culture, education, scientific research, health and parks, residential houses, etc.. The Project area - Henan New District, including the south area of Youjiang District, the north of the Nanning-Kunming expressway, and face to Youjiang River and opposite site of Baise City, has a total area of square kilometers. 52. The economic construction and social undertakings in Youjiang District have made great development since the reform in PRC. Initially it has formed unique industrial system; and has become an important production base of non-ferrous metals industry, sugar industry, paper industry, grain, fruits, and vegetables in Guangxi. For industries: it mainly consists of coal, machinery, electric power, chemical industry, papermaking, building materials, textiles, food and beverage processing industry. Youjiang District has many kinds of agricultural crops, and the grain crops mainly have rice, maize, beans, wheat, potato, and the economic crops mainly include sugar cane, peanuts, vegetables, sesame, hemp, cassava, etc., The local special products have mango, star anise, wood oil, fennel tea, tea oil, etc. 53. The regional economy was developed stablely and society was developed in harmony for the first half year of In the first half year of 2009, the regional GDP was CNY 4.8 billion, with 8% increase; social fixed assets investment was CNY billion, increased 40.5% over the previous year; financial income accumulate completed CNY 238 million, with an increase of 2.4% over the previous year. In 2009, the main targets of the regional economic and social development are: the regional GDP increases to CNY 11 billion, with an increase of 15%; total fixed asset investment CNY 8.2 billion, with an increase of 60%; fiscal revenue is CNY 471 million, with an increase of 15%; urban residents per capita disposable income reached CNY 14,282, with an increase of 10%; farmers per capita net income reached CNY 4,125, with an increase of 10%. Newly increased urban employees are 2,051 people. The registered unemployment rate is less than 3.5%; the urbanization rate is 35%; the natural growth rate of the population is controlled at less than Socioeconomic Profile of the Affected Area and APs 54. This survey was undertaken in the Project affected areas under the supervision of PMO and IA between July and August Its main objectives were: (i) to compile socioeconomic information on the APs likely to lose land or property to 34

35 the Project component; (ii) to obtain information on the extent of APs knowledge of the proposed Project; and (iii) to identify APs preferences regarding land acquisition, structure demolishment and income rehabilitation measures. Under the guidance of PMOs and implementation units, Dawan Village, Nabi Village and Dawang Village had conducted detailed measurement surveys to the households in the affected areas in March The detailed measurement survey conducted in March 2011 covers all the affected rural households and villages as well as affected nonresidential units. A total of 505 households (100% residential house) of the total affected households were surveyed. Table 3-1 presents the surveyed VCs and households, and Table 3-2 shows the socioeconomic status of the affected villages and community which was conducted between July and August Table 3-1: DMS Surveyed Household and Units District Street Administration Office VCs No. of Surveyed Household Dawan Village 93 Nabi Village 328 Youjiang Longjing Dawang Village 84 Subtotal 505 Enterprises 2 Subtotal 2 TOTAL 505 (2) Table 3-2: Economic Status of Affected Villages (2008) Items VC Dawan Nabi Dawang Total Households (No.) Total Population (No.) 3,415 1,967 1,450 Females 1,773 1, Agricultural Population 3,415 1,917 1,450 Non-Agricultural Population 0 50 Total Force (No.) 2,492 1,378 1,087 Industry 82 Agriculture 1,969 1,378 1,087 Service Industry 189 Total Area of Farmland (mu) 6,089 7,510 5,911 Paddy Land 1, Dry Land 1, ,600 Vegetable Land 1, Woodland Orchard Land 1,300 5,300 2,300 Fish Ponds Wasteland Gross Income (CNY 10,000) 1, Agriculture (CNY 10,000) Industry (CNY 10,000) Service & Tertiary Industry (CNY 10,000) Demographic Features of APs 56. The detailed demographic features of surveyed APs are listed in Table 3-3, 35

36 including age, population composition, education and occupation by gender. 57. The ages of the surveyed population showed that the population is approximately distributed in normal situation with the majority of the population between years old who represent the major workforce and account for 42.70% of total sampled population. The age intervals are divided based on the population composition, e.g., the students accounted for 14.02% of the total surveyed population, which is the same with the population of the 7-19 years old (12.85%). According to this definition, therefore the total work force accounts for 72.36% of the surveyed population. 58. Over half of the household members have received junior middle school education, and senior high school education ranked second, 23.56%. A total of 2.14% of surveyed members have finished or are pursuing high school. The rest 7.04% have received education from vocational school, college and university. Of the total surveyed respondents, 10.68% are those who are over 55 years old or less than 6 years old. 59. The employment is characterized by 96.59% of the APs in labor force stay in the village to engage in agricultural activities and animal husbandry. Meanwhile they also use low-peak time during agricultural production period to go out for seasonable labors. Some women and young people also go out for seasonable work. Except agricultural production, 65% people are engaged in seasonable labor, 35% of the survey population engaged in small business. The remaining 5% take opportunities of other jobs including enterprises working, marketing and village administration staff for VCs. Table 3-3: Demographic Features of the Surveyed Populations (N=718 HHs) Item Male Female Total Number % Number % Number % Household: 505 1, , Household Size: 3.82 Age 6 years Years Years Years Years Years Total 1, , Composition Kids (< 7 years old) Students Labor Force , Retired* Total 1, , Education Illiterate Primary school Middle school High school Vocational School College University or Above Total 1, ,

37 Item Male Female Total Number % Number % Number % Occupation Farmer , Note: The retired person means female 55 years, male 60 years. Data sources: Socioeconomic survey between July and August, Table 3-4:Statistical Characters of the APs in the Enterprises Item Male Female Total No. % No. % No. % Affected Enterprises: , Baise Mining Machinery Manufacturing Plant Baise City Grain Co Age years old year old Total , Composition Staffs , Education Primary school Junior middle school Senior high school College or above Total , Note: The retired person means female 55 years, male 60 years. Data sources: Socioeconomic survey between July and August, Residential Houses 60. All structure within the scope of the Project ROW will be demolished. According to the survey, it indicates that the average area of structures for aquaculture and facilities is m 2, with the largest area of 390 m 2. Table 3-5 is the area of structures to be demolished. Table3-5: Area of Residential Structure Demolishment (N=38 HHs) Structures Min. Max. Average No. of Structures/AH Area of Structures (m 2 /AH The affected structures mostly include brick-concrete or brick-tile, accounting for 66% of the total structure demolition, of which 25.73% are brick-concrete structures, 40.39% brick-tile, and the rest 33.88% are simple structures Land Use 62. The 3 affected villages have a total of 19,510 mu farmland, 1,574 households or 6,832 persons. The average farmland per households is 12.4 mu, with average farmland of 2.49 mu per capita. The land use in the villages mainly include paddy land, dryland, vegetable land, wood land, orchard land, greening land, fish pond, waste 37

38 land and homestead. The major agricultural crops are paddy rice, sugar cane, corn, and bean. The economic crops include vegetable, star anise, cassava, peanuts, etc. As a result of land acquisition, the affected villages will lose mu of their land, including mu agricultural land which accounting for 2.358% of the total farmland Financial Situation of Households 63. The incomes are divided into two categories: household members engaging in agriculture and small businesses. Table 3-6a provides the average financial situation of the affected households. Table 3-6a: Average Financial Situation of Affected Households in 2008 Item Annual Financial Situation of Households (CNY/Capita) Affected Farmers Affected Staffs of Enterprises Number of Surveyed Households: 718 Average Income Per Capita 2,820 13,200 Average Expenditure Per Capita 2,100 9,600 Average Savings Per Capita 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 of the villagers in the Project area are ranked at middle level of Baise City. In the affected villages, the villagers are mainly engaged in farming (mainly paddy rice, corn, sugar cane, peanuts, vegetable, cassava, mango, etc.), animal husbandry, seasonable migrant labors, and small businesses in urban districts of the city. Agricultural income accounts for 80% of their total family income. The average net income from agricultural farming accounts for CNY 2,820 per capita or CNY 11,730 per household in the affected villages. Due to the land loss, the affected people will lose average 1.64% of the total family income or CNY 229 per household per year. 65. The expenditures spent for children s education accounted for 22%, ranking second after that for food. For agriculture, it is accounted for 20%. For the households who have debts are due to money borrowing for paying their children s tuition or related costs, particularly for paying education costs for higher education. Table 3-6b and Table 3-6c provide the income sources and expenditure patterns of surveyed farmer households, respectively. Table 3-6d presents details of monthly expenditure of surveyed farmer households. 66. Most APs were engaged in seasonal work such as construction, shop or restaurant service, gate guard, temporary worker, security guard, small business with monthly income of CNY 600 to CNY 2,500 and annual working time of 100 days to 150 days. Table 3-6b: Income Sources of Surveyed Households in 2010 (N=505) Income Source Stable Salary Seasonable Labor Business Others Total %

39 Table 3-6c: Expenditure Patterns of Surveyed Households in 2010 (N=505) Culture Agriculture Health Transport & Expenditure Food Clothes Housing Education & Production Care Communications Total Recreation % Table 3-6d: Monthly Expenditure of Surveyed Households in 2010 (N=505 HHs) Expenditure (CNY/month) Total 336 AHs < CNY AHs > CNY 800 Items Expenditure of surveyed households Average expenditure / households Expenditure of surveyed households Average expenditure / households Expenditure of surveyed households Average expenditure / households Food 99, , , Tobacco & alcohol 8, , , Clothes 26, , , Family facilities and services 50, , , Health care 60, , , Public transportation 10, , , Agri. production 50, , , Communication 6, , , Entertainment 6, , , Education 50, , , Rental & house loan Water, electricity and gas costs 33, , , Dependent parents or other relatives Tax Total expenditure 404, , , Table 3-7a and Table 3-7b provide the income and income sources of the affected staff in Baise Mining Machinery Manufacturing Plant and Baise City Grain Co.. Table 3-7c is the detailed expenditures. Table 3-7a:Income of Affected Staffs (N = 1,005 persons) Income Source Salary Commercial Activities Other Total % Table 3-7b: Income Sources of Affected Staffs (N = 1,005 persons) Culture & Transport & Expenditure Food Clothes Housing Education Health Care Total Recreation Communications %

40 Table 3-7c: Expenditures of Affected Staffs (N = 1,005 persons) Expenditure (CNY/month) Total 619 AHs < CNY AHs > CNY 800 Items Expenditure of Average Expenditure Average Expenditure Average surveyed expenditure of surveyed expenditure of surveyed expenditure / households / households households / households households households Food 220, , , Tobacco & alcohol 17, , , Clothes 57, , , Family facilities and services 17, , , Health care 170, , , Public 34, , , transportation Communication 22, , , Entertainment 13, , , Education 124, , , Water, electricity and gas costs 188, , , Total Expenditure 866, , , Gender Analysis Gender Difference in Education 68. Based on the survey data, it is clearly shown from the Project affected area that men have higher proportion for middle school and high school than women. Table 3-3 presents the education difference between male and female in affected family. Table 3-4 presents the education difference between male and female in affected enterprises Gender Difference in Occupation and Income 69. This section is just for gender difference in occupation and income for rural families. Similar to and interlinked with the education background of men and women s groups, all men and women engaged in agricultural farming. Most males go out for seasonal work. Females do housework at home. Considered gender difference in education and job occupation background of potentially affected person, the shares of women s income in household s total income range from 15% to 50% based on the survey. Table 3-8 presents women s share of household income. Table 3-8: Women s Share of Household Income in 2008 % of Total Range of Household Household Surveyed Monthly Income (No.) Household Women s Share (%) of the Total Household Income Average Women Monthly Income (CNY/capita) Affected Farmer HHs (N = 718) < % 15.00% % 25-36% % 37-49% , % 40-49% 400 >1, % 50%

41 Subtotal % Gender Perspectives on Resettlement 70. When asked the surveyed households on the resettlement issues, the majority of the affected households request fair and timely compensation if their land has to be acquired and structures have to be demolished. In comparison with house demolition, the APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them. As they live close to the urban area, they are not willing to engage in agricultural production any more but hope to get the reconstruction land and/or reconstruction house land back for their future livelihood and living. The surveyed 505 households expressed that they would use the compensation payment to rebuild structures or purchase economy houses. Most of them would like to use compensation payment to do some businesses or get some training to be employed in enterprises and institutions and no longer engaging in agricultural farming any more. According to Baise Urban Master Plan, their land will be used for urban development. Table 3-9 provides the opinions and concerns of the APs for resettlement. All of these concerns raised have been incorporated in the planning and implementation of resettlement program, and relevant mitigation measures should be formulated and implemented. Table 3-9: Opinions and Concerns of the APs on Resettlement Item % of Males % of Females % of Total Fair Compensation Availability of Replacement Houses Timely Compensation Employment Obtaining Reconstruction Land All Cash Compensation Future Employment Children s Education Assistance during Resettlement Loss of Family Social Network Others (Government s Assistance)

42 IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE 4.1 Public Participation Strategy 71. Great attention has been paid to public participation under the Project during the planning, and RP preparation. Comments have been solicited from each affected village, government organizations and affected households. 4.2 Methods and Measures of Public Participation 72. During the preparation of the project FSR, PMO, IA and DI have held various meetings with the relevant organizations and representatives of villages regarding the land acquisition and resettlement issues and compensation policies. Comments and suggestions have been obtained on the resettlement site, compensation, and livelihood and income rehabilitation plan. The RP has been prepared based on the above. 73. During the project implementation phase, PMO, IA and RO will encourage local villagers to involve in the land acquisition and livelihood rehabilitation and income restoration process. 4.3 Public Participation during RP Preparation 74. During the RP preparation, all relevant organizations and representatives have participated in the following activities: (1) During the measurement survey of land acquisition and resettlement between July and September 2009 as well as the detailed measurement survey (DMS) conducted in March 2011, all levels of relevant organizations responsible for land acquisition and resettlement, village committees, representatives of villagers (including women) have been involved in the survey activities. During the survey, women were basically on the spots, they carefully checked and read the index investigation final results. (2) From May to September 2009, the PMO, IA and DI organized many meetings with district leaders, representatives of VC, and APs to publicize the existing national, autonomous region and municipal resettlement policies and ADB s Policy on Involuntary Resettlement. Comments have been solicited from the participants for minimizing the project impacts, and formulating the compensation rates, and resettlement and rehabilitation plan. With extensive consultations, the APs who will be affected with different losses all agree with the cash compensation or replacement resettlement in accordance with the national regulations. (3) During resettlement planning period from May to September 2009, PMO, IA, DI, and other relevant organizations visited the affected village committee and villager group, held meetings with participation of the villager leaders and representatives of villagers to solicit their comments on land acquisition and resettlement, compensation policies and standards, resettlement plan, and restoration measures. These consultation meetings and investigations have generated lots of interests in the resettlement issues and compensation policies, compensation entitlements, and rehabilitation plan. The location of the reconstruction land and reconstruction house land in the new resettlement sites was discussed. 42

43 (4) In order to strengthen the project awareness and outreach, PMO, IA and DI conducted questionnaire surveys of the APs in July and August The survey covered all the households to be affected by land acquisition and residential structure and non-residential structure demolishment; and the result is reliable and reflects the preferences of the APs. (5) Consultation workshops on environment and resettlement between May and July, (6) Soliciting comments of the APs on land acquisition and resettlement between May 2009 and January The details are presented in the following table: Time Venue Participants (No.) Content of Discussion May 2009 GBDIGCL Conference Room 30 persons (representatives of 3 villages, including 15 females) Solicit comments on LAR from the APs July 2009 VC of Nabi Village 456 persons (1 representative for each household) Solicit comments on LAR from the APs July 2009 VC of Dawan Village 714 persons (1 representative for each household, with some individuals absent Solicit comments on LAR from the APs due to family matters) July 2009 Dawang Village 380 persons (1 representative for each household, with 1 household absent) Solicit comments on LAR from the APs Aug Baise Mining Machinery Manufacturing Plant Conference Room Representatives of 561 employees Aug Baise Mining Machinery Representatives of 105 employees Manufacturing Plant Conference Room May 2010 GBDIGCL 102 persons (representatives of 3 villages, including 48 females) May 2010 GBDIGCL 102 persons (representatives of 2 enterprises) Oct., 2010 VCs 505 persons (representatives of 3 AHs, including 185 females) Oct., 2010 GBDIGCL 102 persons (representatives of 2 enterprises) Solicit comments on LAR from the APs Solicit comments on LAR from the APs Consultation on compensation of land acquisition Consultation on compensation of relocation Consultation on compensation standards of LAR Consultation on the resettlement of the enterprises and employees Jan VC of Nabi Village Representatives of 328 AHs Consultation meeting on LAR compensation and resettlement Jan VC of Dawan Village Representatives of 93 AHs Consultation meeting on LAR compensation and resettlement Jan VC of Dawang Village Representatives of 84 AHs Consultation meeting on LAR compensation and resettlement 43

44 75. The results of the consultation indicate that in general, the APs require fair and reasonable compensation, and the payment should be paid timely. In comparison with house demolition, the APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them. As they live close to the urban area, they are not willing to engage in agricultural production any more but hope to get the reconstruction land and/or house reconstruction land back for their future livelihood and living. They also would like to use cash compensation from the loss of their land to rehabilitate their livelihood and income, such as: i) purchase of social insurance; ii) development of self-employed tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment, catering and hotel services, and tourism); iii) share of profit dividends from the construction and development of the reconstruction land and/or reconstruction house land in new resettlement sites; and iv) investment in their children s education. They expect to seek employment in other institutions, enterprises and businesses through training. The APs are satisfied with the compensation rate, and resettlement and rehabilitation measures. However, they also expressed their concerns on fair compensation and timely disbursement of compensation payment. 4.4 Women s Participation 76. Women in the Project area enjoy equal rights with men and they are playing an important role in project planning, design and implementation. During the field survey, about 40% of women have participated in the survey on land acquisition, structure demolishment and inventory indexes. Meanwhile, the local government organized the resettlement consultation meeting (at least 30% participants are women) and some representatives of Baise City Women s Federation were asked to participate in consultation meetings to fully solicit opinion of local women. The major concerns for women are fair compensation standards and timely compensation payment. They would like to get necessary assistance from the local government during the land acquisition and resettlement process, and priority for employment and training opportunities. 4.5 Information Disclosure Resettlement Information Brochure 77. In order to help the APs gain a good understanding of the land acquisition and resettlement policies and their entitled rights, IA (GBDIGCL) in association with BESTCCL has prepared a updated resettlement information brochure (RIB) and a copy of RIB will be distributed to each AP before 20 March, Please refer to Appendix 1 for the RIB. The main components of the brochure include: (1) general description (including purpose and location) of the Project and the socioeconomic benefits; (2) project impacts; (3) laws, regulations and policies of land acquisition and resettlement; (4) basic rights and entitlements of the APs; (5) compensation rates; (6) resettlement and income restoration plan and grievance procedure; and (7) implementation schedule. The affected persons were satisfied with the compensation rates and the rehabilitation measures proposed. They will sign their agreement on the entitlements. The disclosure procedure can increase the transparency during the resettlement implementation. At the same time, it will advise the APs how they can raise their requests and appeal through various channels (including the VC, PMO, IA and RO, BLRB, BHDAO, GZAR LRB, GZAR HDAO, and court) and various methods (i.e. by visiting, writing letter or telephone). 44

45 4.5.2 Distribution of the Resettlement Plan 78. The draft resettlement plan was distributed to the affected VC in the first week of November The RP to be approved by BMG was redistributed to village committees by 15 December 2009 to anyone wishing to consult the document in the VCs. Copies of the RP have been kept in the Project office and affected VC. At the same time the RP was posted on the ADB s website at the end of December The RP has been updated based on the detailed measurement survey (DMS) and will be disclosed to the APs by 20 March 2012 and submitted to ADB for review and approval prior to approval of civil works contract awards. After ADB approval, the updated RP will also be posted onto ADB s website for disclosure at the end of March For ethnic minority households, wherever necessary, appropriate language and communication materials will be used for the purpose of disclosure of entitlements, income restoration measures and consultation with EMs during project implementation. 4.6 Public Participation Plan during RP Implementation 79. In order to address the problems and needs of the APs properly and timely regarding land acquisition and resettlement, further consultations with the APs will continue so that all issues may be addressed prior to the start of construction and the implementation of the RP. Meetings will be arranged by the implementation agencies for land acquisition and resettlement, as appropriate. Each affected household will have the opportunity to negotiate the compensation contract, which they will sign with the RO. Table 4-1 provides the public consultation plan and process. Table 4-1: Public Consultation Plan and Process Purpose of Form of Implementing Timing Event Event Agencies 1. Provide Village Jul 2009 Sept PMO, IA, DI, briefings to meetings and 2009 district APs on focus group government, and Project & RP. discussion VCs Solicit comments from APs. 2. Disclosure of RIB Public & village meetings and focus group discussions December 2009 March 2012 PMO, IA, district government, BLRB, BHDAO, and VC Target Participants All APs affected by LAR of the Project All APs affected by LAR of the Project Remarks Meetings held with APs in each village Distribution of RIB to all APs to discuss concerns and suggestions on LAR programmes 3. Present Draft Final RP to APs Public & village meetings and focus group discussion December 2009, March 2012 PMO, EA, IA district / county governments, and VCs All APs affected by LAR of the Project Undertook discussions with various focus groups to solicit comments & suggestions Distribution of the draft RP to APs to discuss concerns & gaps relating to LAR programs Undertake 45

46 Purpose of Event 4. Advise APs of Entitlements and Dates of Disbursement 5. Conduct Detailed Measurement Survey (DMS) 6. Prepare and Disclose Detailed Design and Updated RP to APs Prior to Submission to ADB for Approval 7. Monitoring of APs, beneficiaries Form of Event Public meetings Site investigations and household interviews Public & village meetings and focus group discussion Household interviews Timing Implementing Agencies December 2009 PMO, IA, district / county governments, and VCs March 2012 PMO, IA, district / county governments, BLRB, BHDAO, and VCs Target Participants All APs affected by LAR of the Project All APs affected by LAR of the Project March 2012 PMO, IA, and RO Stakeholders, beneficiaries, and APs June 2011 December 2013 PMO, IA, district government, BLRB, BHDAO, and VCs, and independent monitoring agency Random samples Remarks discussions with various focus groups to solicit comments & suggestions Household meetings to outline entitlements Inventory survey of all assets and land holdings Collection of socioeconomic data Meetings to be held with beneficiary population, and with APs Provide recommendations and update RP Monitoring plan Note: BHDAO = Baise House Demolishment Administration Office; BLRB = Baise Land Resource Bureau; RO = Resettlement Office; VCs = Village Committees. 80. For smooth and successful implementation of the resettlement plan, the APs will be encouraged to actively participate in various land acquisition and resettlement activities. The Project construction will cause some impacts more or less on local people. In order to ensure the APs could benefit from the Project, local people are encouraged to actively participate in the project construction, and necessary consideration and assistance should be provided to local APs in the use of labors. 46

47 V. APPEALS AND GRIEVANCE PROCEDURES 81. APs can propose any complaint related to resettlement issues and compensation. The Project has established a transparent grievance channel in addition to the existing grievance channels of local government. The first step of grievance procedure established for the Project is through village committee, which is localized grievance mechanism. The legal resolution is the last step proposed for the APs in case that the APs are not satisfied with the decisions made during the whole localized grievance process. APs will be informed of the above grievance and appeal procedure through public information meetings, the resettlement information brochure and other media, so that they can fully understand their rights for grievance and appeal. The resettlement implementation organizations should resolve the grievance for the APs timely. The basic grievance procedures include the following steps. Stage 1: 82. If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the village committee or in oral or in written form. If an oral appeal is made, the village will record it on paper and process it. Village committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice. Stage 2: 83. If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the district government office after receiving the decision; the district government office will reach a decision in two weeks. The AP will be informed of the result via written notice. Stage 3: 84. If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the Baise Project Management Office (BPMO) or Baise Land Resource Bureau (BLRB) or Baise House Demolishment Administration Office (BHDAO) after receiving the decision. The Baise City PMO or BLRB or BHDAO will reach a decision in two weeks. The AP will be informed of the result via written notice. Stage 4: 85. If the aggrieved AP is still unsatisfied with the decision of the BPMO or BLRB or BHDAO, he/she will appeal to the GZAR LRB or HDAO after receiving the decision. The GZAR LRB or HDAO will reach a decision in two weeks. The AP will be informed of the result via written notice. Stage 5: 86. If the AP is still dissatisfied with the decision of the GZAR LRB or HDAO, he/she will appeal to the civil division of a people s court according to the civil procedural law after receiving the decision from GZAR LRB or HDAO. The AP will be informed of the result via written notice The resettlers can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc. 88. An independent agency (IMA) will be hired by the BPMO for the overall resettlement monitoring and evaluation of the Project in Baise City. The IMA will inspect and report on the resettlement processes and the operation of the BPMO and relevant organizations involved in the LAR implementation at different levels and correct any errors made during the resettlement process. 47

48 VI. LEGAL FRAMEWORK AND POLICIES 6.1 Applicable LAR Laws, Regulations and Policies 89. The PRC has established and implemented laws, regulations, and policies on resettlement and compensation for many infrastructure projects. This Project will follow the related Chinese laws, national and GZAR regulations and local bylaws and policies, and also include comments and suggestions from APs, and meanwhile meet the requirements of ADB s Policy on Involuntary Resettlement. The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project. 90. The land acquisition, demolition and resettlement of this Project will be complying with the laws and regulations of PRC, local government and ADB: Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004; Land Administration Law of the PRC, amended in 2004; Implementation Regulation for Land Administration Law of PRC; December 1998; Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93]; Temporary Regulations on Farmland Acquisition Tax of PRC, 2008; GZAR Land Administration Law, 2001; Management Law of Urban Real Estate of PRC, 1994; Guidelines for Valuation on Urban House Demolishment of PRC; 2004; Urban Housing Demolition Management Regulations of the PRC issued in 2001; Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, 2003; Decree 15 of Guangxi Zhuang Autonomous Region People s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region; Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52]; Implementation Methods of GZAR farmland occupation tax [Guizhengfa (1987) 88 Hao 59]; Notice of Social Safeguard Temporary Method for the Farmers Whose Land Acquired in Baise City, 2009; Notice for Acquisition Method of Collective Land in Urban District in Baise City, 2005; Notice for Compensation and Resettlement Method of Collective Land and House Demolishment in Baise City, 2008 (Document No. 67); Response on Approval for the Compensation Standards of the Land Acquired in Industrial Park, 2006; ADB s Involuntary Resettlement Policy, 1995; Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998; Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; and, OM Section F2 Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila,

49 6.2 ADB s Involuntary Resettlement Policies 91. 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: i) Involuntary resettlement should be avoided whenever feasible; ii) Where population displacement is unavoidable, it should be minimized by exploring viable livelihood options; iii) 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; iv) 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 rehabilitation measures, the affected people need to be provided with sufficient resources and opportunities to re-establish their livelihoods and homes as soon as possible, with time-bound action in coordination with the civil works; v) 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 vi) negotiation, planning, and implementation; 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; vii) 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; viii) Confirmation of eligibility. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligible cut-off date, preferably at the project identification stage, to prevent a subsequent influx of encroachers or 49

50 others who wish to take advantage of such benefits; ix) 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 socioeconomic status; x) 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 situations (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. xi) Eligible costs of compensation. Relocation and rehabilitation may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely availability of the required resources and to ensure compliance with involuntary resettlement procedures during implementation. 6.3 Related Laws and Regulation of PRC 92. This Project can be implemented based on the PRC Land Administration Law (effective as of January 1, 1999 and amended in 2004), Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration issued by State Council, October 2004, Urban Housing Demolition Management Regulations of the PRC issued in 2001, and Management Law of Urban Real Estate of PRC (effective as of July 5, 1994) as well as the other relevant laws and regulations Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration, issued by State Council, October 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. It should be ensured that land compensation fees, resettlement subsidies and compensation for ground attachments and standing crops shall be provided in accordance to applicable laws and regulation in full and in time. If the land compensation fees and resettlement subsidies as stipulated by law still cannot be able to maintain the original standards of the land-losing farmers and are not adequate to cover the social insurance costs of the landless farmers, the provincial government shall approve an increase in the resettlement subsidies. If the sum of the land compensation fees and resettlement subsidies has reached the legal upper limit but still cannot maintain the original living standards of the farmers, the local government can provide additional subsidies with the use of revenues from the sales for the use of state land. The provincial government shall formulate and publicize the standard annual output or regional land prices for land acquisition in the cities and counties under the provincial jurisdiction. Land acquisition compensation shall be kept identical for identical quality of land in same locality. The full costs of land acquisition for national key development projects shall be included in the overall project budget. 94. Article 13: Properly resettling farmers whose land is acquired. People s Governments at the county level and above shall formulate concrete measures to guarantee the long-term livelihood of the farmers whose land is taken. The farmers shall be given stocks for land-taking projects that have stable revenues. In a prescribed urban zone, the local government shall place the farmers who are made 50

51 landless because of land acquisition in the urban employment system, and set up a social insurance system for them. If the acquisition of collective land takes place outside the prescribed urban area, the local government shall set aside essential farmland within the administrative area or assign suitable jobs. Resettlement in distant areas should be considered for farmers who can no longer have adequate land to continue farming. The labor and social insurance departments shall cooperate with other relevant departments to provide guidance on the establishment of employment training and social insurance program for land-losing farmers PRC Land Administration Law 95. The Land Administration Law of the PRC was passed at the 16 th session of the Sixth Standing Committee Meeting of the National People s Congress on June 25, It was subsequently amended at the Fourth Session of the Ninth Standing Committee Meeting of the National People s Congress on August 29, The newly amended law was brought into force on January 1, 1999, according to the Decision on the Amendment to the Land Administration Law of the PRC that was adopted at the Fifth Session of the Seventh Standing Committee Meeting of the National People s Congress. 96. ARTICLE 47: Land acquired shall be compensated for on the basis of its original purpose of use. 97. Compensation for acquired cultivated land shall include compensation for land, resettlement subsidies and attachments and young crops on the acquired land. Compensation for acquisition of cultivated land shall be six (6) to ten (10) times the AAOV of the acquired land for three years preceding such acquisition. Resettlement subsidies for acquisition of cultivated land shall be calculated according to the agricultural population to be resettled. The agricultural population to be resettled shall be calculated by dividing the amount of acquired cultivated land by the average amount of the original cultivated land per person for the unit of the land is acquired. The standard resettlement subsidies to be divided among members of the agricultural population needing resettlement shall be four (4) to six (6) times the AAOV of the acquired cultivated land for three years preceding such acquisition. However, the highest resettlement subsidies for each hectare of the acquired cultivated land shall not exceed fifteen times its AAOV for the three years preceding such acquisition. 98. Standards of land compensation and resettlement subsidies for acquisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for acquisition of cultivated land. 99. Standards for compensation of attachments and young crops on the acquired land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government For acquisition of vegetable plots in city suburbs, the land users shall pay towards a development and construction fund for new vegetable plots in accordance with the relevant regulations of the State If land ccompensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of this Article are still insufficient to help the farmers needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people's governments of provinces, autonomous regions and municipalities directly under the Central 51

52 Government. However, the total land compensation and resettlement subsidies shall not exceed 30 times the AAOV of the acquired land for the three years preceding such acquisition Urban House Demolition Management Regulation of PRC 102. Article 6: The demolition unit cannot demolish house/building until obtaining the demolition certificate Article 22: The demolition unit should give the tenants compensation according to these regulations. There is no compensation for demolishing illegal building and temporary buildings that exceed the approved period Article 23: Resettlement compensation can be paid out in cash, or by exchange of property rights. The resettlers can choose between the two compensation options cash compensation or house exchange Article 24: The amount of compensation shall be determined on the basis of the assessment of the real estate market, in reference to the location, purpose of use, construction area and other factors Article 31: The acquiring unit shall pay a resettlement allowance to the owner of the building or its tenants. During the transition period, if the owner or tenants arrange living places by themselves, the acquiring unit should pay them an allowance for their temporary transition. If the owner and tenants use temporary accommodation provided by the acquiring unit, no temporary transition allowance is necessary The standard of the resettlement allowance and temporary settlement allowance will be regulated by the people s government If the demolition extends the transition period for which the acquiring unit is accountable, the acquiring unit shall increase the allowance to the owner or tenants by the months delayed. For those who use the transition building, the acquiring unit shall give a temporary settlement allowance by the months delayed Article 32: The house demolition agency is not allowed to extend the transitional period at their choice. The user of transitional house shall vacate on time. If the house demotion agency extends the transitional period due to their reasons, temporary resettlement subsidy should be added and paid to the resettlers or house tenants from the first date started the extension; for the users of transitional house, the temporary resettlement subsidy should be paid to the persons from the first date started the extension Article 33: The acquiring unit shall compensate for production stoppage and business disturbance to any non-residential building Implementation Method of Guangxi Zhuang Autonomous Region for Land Administration Law 111. Article 7: The ownership of the state-owned and rural collective-owned land shall be determined by the Land Administration Law, the implementation regulation of the Land Administration Law and other laws and statutes. 1 It means beyond the expiry date certification. 52

53 112. Article 8: The rural collective-owned land is legally owned by the farmer's collectives and managed and administrated by the village collective economic bodies. If the village collective economic body is not complete, the villager committee shall manage and administrate the land. If the land in a village is owned by more than two rural collective economic bodies, each of the bodies or village group shall manage and administrate the land. If the land is owned by town or township, the rural collective economic bodies of the town or township shall manage and administrate the land. If the rural collective economic body of the town or township is not complete, the town or township government shall manage and administrate the land Article 21: Preparation of the yearly schedule of land use shall follow the following principle. (I) strictly follow the overall land use plan and dominate the gross land size used for construction and protect the cultivated land. (II) Guide the land demand by land supply, and rationally and effectively utilize the land. (Ill) Preference of use of land shall be given to the key capital construction projects, and the projects supported by the state industrial policies of the region and state. (IV) Protect and improve the ecological environment and the sustainable use of the land resources Article 26: The followings shall abide by in reclaiming new cultivated land in same size and quality of the cultivated land requisitioned for non-agricultural construction. (I) Within the land boundary for urban construction defined in the overall land use plan, the local city, county government shall be responsible for organizing reclamation for implementation of the planned urban construction; (II) Within the land boundary for construction of village or town facilities defined in the overall land use plan, the town or township government shall be responsible for organizing the rural collective economic bodies or the land occupying organization to reclamation for implementation of the planned construction of village or town facilities; and (IlI) For the cultivated land occupation for construction of power generating, transportation, water conservancy, mining and military facilities beyond the land boundary for urban and rural construction defined in the overall land use plan, the land occupation organization shall be responsible for reclamation of new cultivated land Article 27: For the cultivated land occupied for non-agricultural construction, the organization or individual shall pay the reclamation fee if he has no means for reclamation Article 34: The land use organization and individual shall restore the destroyed land due to excavation, collapse and occupation during production and construction according to the State's and Regional stipulations concerning reclamation of land, and in 30 days of completing such reclamation, applies to the land administrative department of local municipality, county (city) government for inspection and acceptance. In case the land use organization or individual who has not means to conduct reclamation or whose such reclamation is not in compliance to the requirement in acceptance, he shall pay to the land administrative department of local municipality, county (city) government the land reclamation fee at a rate of CNY per square meter. The said land administrative department shall organize the land reclamation Article 45: Each rural villager's household shall have only one piece of house plot. Construction of villager's residence shall be in compliance to the overall land use 53

54 plan of the town/township, and shall be in combination of the reconstruction of the old village and take full advantages of the old house plot, idle land and waste land on hills within the village. Occupation of farmland shall be strictly limited. The area of approved new house plots shall observe the following criteria: (1) size of house plot in plain and suburban areas shall not exceed 100 square meters for each household; and (2) size of house plot in uplands and hilly areas shall not exceed 150 square meters for each household Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC 118. Article 9: When the house demolition administration department issues a house demolition permit, it shall be within 5 days, publicize all contents specified in the house demolition permit, including the name of the Project, structure dismantler, scope of demolition, and time limit of demolishment, implementation unit of demolishment, etc. The announcement should be made in the form of house demolishment notification The house demolition administration department and the dismantlers shall properly publicize and explain the relevant matters to the resettlers Article 18: The demolition unit and the affected people shall reach agreement on compensation and resettlement for demolition For demolition of rental houses, the demolition unit shall reach agreement with the affected people and the tenants on demolition compensation and resettlement Article 19: Dismantlees or house tenants should be compensated by dismantlers based on household house property certificate, rental vouchers of public houses and house rental contracts which are effective after issuance date of house demolition permits The dismantlees and house tenants signing compensation agreements refer to the property owners with house property certificate and tenants with rental vouchers of public houses or house rental agreement Article 20: The agreement of demolition and resettlement compensation shall contain the following contents: (i) (ii) (iii) (iv) (v) Construction area of the houses to be demolished; Amount of cash compensation for demolition; Methods of compensation and resettlement; Time limit of relation, approach of temporary transition and time limit of temporary transition; and, Other issues mutually agreed by concerned parties Article 32: Dismantlers should pay all compensation exclusively for house demolition and relocation purpose and cannot be used for other purposes House demolition administration department should establish financial regulatory system to enhance financial supervision on the relocation compensation Article 34: Dismantlers should compensate the dismantlees in accordance with of the regulation. 54

55 128. Demolition of illegal structures and temporary buildings exceeding approval period should not be compensated. Demolition of temporary buildings within approval period should be compensated. The monetary compensation formula is: monetary compensation = replacement price of temporary structure x remaining period approved period Replacement price refers to replacement price on the date of issuance of housing demolition permit Article 37: Formula for monetary compensation for house demolition is: monetary compensation = unit price of real estate market assessment for demolished house x construction area of house to be dismantled The unit price in the preceding section refers to the price of construction area per square meter If real estate market assessment price is lower than the lowest compensation rates, the lowest compensation rate should be applied. Lowest compensation rate refers to the average market unit price of purchased public houses in similar structures and locations. The specific criteria should be determined by city and county governments Article 38: For decorated houses, except for movable parts and materials, the decoration should be partially compensated. Formula for monetary compensation of house decoration is: monetary compensation of house decoration = replacement price of housing decoration x (standard life duration - actual time used of decoration) standard life duration The replacement price of house decoration in the preceding section refers to replacement price of the same grade house decoration on the date of issuance of housing demolition permit. The standard life duration refer to: (1) 10 years for residential houses; (2) 7 years for office building; and, (3) 5 years for shops, hotels, restaurants and other business premises The lowest monetary compensation for house decoration cannot be lower than 20% of replacement price of house decoration Article 39: House Demolition Agency shall entrust the real estate assessment institution to evaluate the value of the houses and to confirm the cash compensation If the owner of the demolished house has objections to the resettlement and compensation programs, an agreement could be signed between the house demolition agency and the owner of the demolished house to entrust a legal real estate institution to conduct the assessment and evaluation of the house value. Assessment costs should be shared by both parties If the resettlers still have objections on the evaluation result, s/he can appeal to the expert panel of the house demolishment administration office within 15 days from the date receiving the evaluation report. The formation of the evaluation committee, evaluation method and responsibilities for assessment cost could be regulated by the GZAR authority. 55

56 139. If the owner of the demolished house has not received the evaluation report within 15 days of application, s/he could use the evaluation result as the evidence for compensation and appeal. For the person who has made application for evaluation, s/he could use the evaluation result as evidence for compensation and appeal Article 50: Demolition has been implemented without obtaining a house demolition permit, the house demolition administration department, in accordance with the "Article 34 of the regulation, should order a stop of demolition by warning with a penalty of CNY20 to CNY50 per square meter of demolished houses. 6.4 Gaps between ADB and Chinese Policies 141. In comparing the gaps between ADB and PRC policies, Table 6-1 presents that the distinctive differences in the aspects of legal rights or property certificates, and information disclosure and consultation which are lacking in content or in time delays. Table 6-1: Gaps between ADB and PRC Policies Differences Comparison Solutions Relocation compensation There are rules and regulations in PRC related to the relocation compensation. But compared to the equivalent policies of ADB, the execution of these regulations are usually not so transparent. Measures should adopt to make sure that the compensation fee will be distributed timely and sufficiently. It is important that the performance of concerned management organizations should comply with the ADB s policy. Meanwhile, attention should be paid to APs participation and activities to increase awareness of public participations during RP implementation. The IA and RO should ensure that all of the people understand the policies and procedures regarding land acquisition, resettlement, compensation, payment, and provision of grievance redress and appeal procedures. Besides, the IA should enhance the internal and external supervision. Special Provisions for Vulnerable Groups Consultation and Public Notification Chinese regulations require giving all APs the same treatment without special consideration to vulnerable groups. But ADB requires that particular attention must be paid to the needs of the poorest affected people, and vulnerable groups that may be at high risk of impoverishment. Appropriate assistance must be provided to help them improve their socioeconomic status. According to the requirement of ADB for the RP preparation, the APs should be fully informed and closely consulted. In the Land Administration Law of PRC, it provides the consultation service, but provides no concrete and specific clauses and procedures. During actual practice, usually there is no consultation and no information disclosure until the approval of RP due to the facts that formal land acquisition and location are not finalized during the RP preparation stage and the land user is unwilling to inform the APs. For the Project, the issues of vulnerable groups and gender equity will be incorporate in the land acquisition and resettlement planning and implementation through the provision of a preferential policy to vulnerable groups in such things as compensation, MLG, employment and assistance in relocation To meet the requirements of public consultation and transparency, ADB s procedures have been and will be followed for the Project. The public consultation and notification should be a part of the management meetings of the Project. To avoid the circumstance that administration departments is unwilling to inform the people, during the preparation of the resettlement plan, the cut-off date should clearly specified in the RP, and measurements and surveys should be carried out in details as much as possible, 56

57 Differences Comparison Solutions and a good communication channel should be established with the APs. Grievance Procedures Temporary resettlement Land Administration Law of PRC provides a grievance procedure, but few people have used the formal procedure and the grievance documents are usually incomplete. ADB policy requires safe measures to protect the rights of the APs and actual methods to solve the disputes of the APs. Therefore, this requires a complete step-by-step management, supervision and subsequent actions to be taken to resolve the issues and disputes of the APs. Further, Chinese laws tend to the method of resettlement first, and dispute resolution second, in contrary, ADB required to take as much time as possible to settle down issues before land acquisition and resettlement. The most common way in China is to provide temporary house. ADB s policy is to reduce the resettlement as much as possible and ensure the residents live in the illegal houses move to the legal ones. Although it is difficult tasks, effective safe measures should be put into place to strengthen the principles of the resettlement and compensation. Training of the resettlement staff should be undertaken to ensure that they will pay more attention to the needs and concerns of the APs. The APs should be well informed regarding the grievance procedures and processes, including some good cases of grievance and resolution. To meet the requirements of ADB, the following measures should be adopted: No temporary resettlement will be allowed for the resettlement of the Project. The illegal houses will be compensated as the legal houses and legitimatized after relocation. 6.5 Compensation Criteria and Principles Entitlement 142. The Project affected persons (APs) who are entitled to receive compensation refer to the persons affected by the involuntary taking of land resulting in (i) relocation or loss of shelter; (ii) lost of assets or access to assets; or (iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location. All landowners and users and occupants of structures in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the types of losses and quantities as well as the cut-off date determined by Baise Municipal Government. The cut-off date for the compensation will be announced to all APs immediately afterward, within the completion date of the construction map and investigation; any newly cultivated land, or planting of crops or trees, or structures built after the cut-off date determined by the local government will not be compensated Compensation Principles 143. The principle of the compensation and entitlements established for the Project are as follows: (i) Compensation and entitlements provided must be adequate to allow APs to at least maintain their pre project standard of living, with the prospect of improvement; (ii) All the APs, with and without certificates, are to be taken into consideration and accounted for; (iii) Compensation should not be paid to those people who occupy land or construct structures and auxiliaries in the Project area after cut-off date determined by the local government; (iv) Adequate compensation should be provided to the APs timely; (v) A preferential policy will be provided to 57

58 vulnerable groups in such things as compensation, reconstruction land and/or reconstruction house land assignment, transfer and employment; (vi) All the APs will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans and project timing; and (vii) Close monitoring and timely actions will be carried out to identify and resolve any problems Compensation Rate Permanent Land Acquisition 144. The permanent land acquisition will be compensated based on category of state-owned land and collective-owned land. Compensation for state-owned land includes compensation for land, auxiliary items and relocation. Compensation for collective-owned land will be compensation with different types of land. The compensation standards for the loss of different types of land are as follows: Table 6-2: Compensation Rate of Collective Land Paid to VCs Paid to APs Land Resettlement Output Standing Crops Type of Land Compensation Subsidy Value Multiplier (times) Rate (CNY/mu) Multiplier (times) Rate (CNY/mu) Multiplier (times) Unit: CNY/mu Rate Multiplier (CNY/mu) (times) Compensation Rate Rate (CNY/mu) Collective-Owned Land Paddy Land 5, , , , , Dryland 6, , , , , Vegetable 6, , , , , Land Wood Land 1, , , , , Orchard Land 2, , , , , Greening Land 31, Fish Pond 5, , , , , Homestead 50, Unit Land Use 50, Waste Land 1, State-Owned Land State Land 50, Note: The paddy land, dryland, and vegetable land are 4 crops per year, as a result, the standing crops compensation multiplier is 0.25 times. For example, the compensation for standing crops of paddy land is calculated as: CNY 6,268 4 crops/year = CNY 1,567/mu Temporary Land Occupation 145. The temporary land occupation of the Project will involve dryland and waste land. The detailed compensation is presented in Table 6-3. The cost of land restoration is included in the civil works contracts. Table 6-3: Temporary Land Occupation Compensation Standard No. Temporary Land Unit Compensation Standard (CNY) 1 Dry Land mu 2,000 2 Wasteland mu 1,

59 Demolishment of Residential Structures 146. For the lost residential house structures and auxiliaries, the compensation rates are presented in Table 6-4 and Table 6-5, respectively. All the compensation rates for the structures and auxiliaries will be based on replacement value and will be determined based on the Evaluation Center s response based on the evaluation by the qualified real estate evaluation company. The compensation for residential houses will be paid to the APs. Relocation allowance will be provided to the APs at the rate of CNY 500 per household, and each AP, if cash compensation is selected, will be provided with temporary one-time transitional allowance at the rate of CNY 500/household/per month, for a total of 6 months or a total of CNY 3,000 per household. If the APs choose the reconstruction house land, they will receive the compensation at the rate of CNY 500 per month from the date of signing the compensation agreement for demolition and resettlement between the relocated persons and the IA to the date when the reconstruction houses in the resettlement site are delivered, plus one more year for house construction. The basic infrastructure and facilities (including water supply, power supply, road and land leveling) will be constructed by the IA and the house structure construction will be done by the APs themselves. As the APs will not move until their new houses are built, and the relocation will only take about 2 or 3 days, the relocation allowance should be sufficient. Table 6-4: Compensation Rates of Residential House Demolition No. House Structure Type Unit Compensation Standard (CNY) 1 Brick-Concrete m Brick-Tile m Simple m One-Time Transitional Allowance HH 3,000 Table 6-4: Compensation Rates of Auxiliaries Items Unit Compensation Rate (CNY) Fenced Wall m Fruit Tree No. 80 Tomb No Demolishment of Non-Residential Structures 147. For the demolished enterprises, the compensation for the land will be CNY 50,000/mu (including ground attachment). The brick-concrete structure is CNY920/m 2. The compensation for the non-residential structures and relocation allowance at the rate of CNY 8/m 2 will be paid to the affected owners. CNY 500/person will be paid to the affected worker as the allowance for the lost of working days. For the Baise City Grain Co., the 105 affected employees will be reassigned to work in the same enterprise and get the same salary as before demolishment which ranges from CNY 300 to CNY 400 per month for their living Basic Infrastructures and Special Facilities 148. All affected basic infrastructures and special facilities will be compensated at replacement rate to reflect the current value. Table 6-6 provides the compensation standards of the infrastructures and facilities. 59

60 Table 6-6: Compensation Standards of Basic Infrastructures and Facilities Items Unit Compensation (CNY) Road light poles No. 5,000 Telephone Booth No. 20,000 Transformers No. 100 Water Culvert m 3,000 Sighs No. 2,000 Hydrants No. 30,000 Statues No. 100 Power Hafnium Pole No. 100 Telecommunication Line Hafnium Pole No. 800 Inspection Well No. 100 Water Pipes m 100 Sewer Pipes m 250 Communication Line m 350 Low Voltage Power Line m 500 High Voltage Power Line m 400 Underground Cable m 400 Underground Fiber Optic Cable m Special Policy for Vulnerable Group 149. The needs and interests of vulnerable groups, special attention will be given to them, particularly the potential difficulties faced by vulnerable people in affected areas in resettlement planning and implementation. The PMO and IA will supervise implementation to ensure these vulnerable persons receive adequate compensation, reconstruction land and/or reconstruction house land assignment, social security plan, special fund and MLG. Assistances on training with free charge, employment, and micro-credit will be provided to them by the BMG, PMO and IA to restore their living conditions and incomes. During resettlement phase, the women-headed households and disabled and elderly people will be given priority to choose the reconstruction land or reconstruction house land. 60

61 VII. ENTITLEMENT MATRIX 150. From the results of inventory surveys, the major impacts of LAR have been identified based on the nature of losses, and an Entitlement Matrix has been prepared as a guide to compensation payments. Compensation for land acquisition, and residential structures, non-residential structure demolishment of enterprises will be paid to the APs before the cut-off date determined by BMG. The compensation will be made in the forms of cash or cash plus reconstruction land 2 for land compensation, and cash or cash plus reconstruction house land 3 for structure compensation. The relocated households will get relocation allowance and temporary transit allowance. The compensation will be in cash. Table 7-1 presents the entitlement matrix. As no farmland will be re-allocated, the compensation for the collective land loss will be paid to the affected households directly. The reconstruction land for production will be allocated to the affected village/production group. The reconstruction land will be managed by the village collective for the development of profit making activities. The village collective will retain 30% of the dividends to be used as supplementary financing source to implement income rehabilitation plan, i.e., social insurance for the farmers who lose their land, medical care, support for vulnerable groups, and investment fund. The remaining 70% dividends will be directly disbursed to the APs. 2 The Reconstruction Land means the land to be allocated to the affected households who lose their land permanently and the land will be used for tertiary industry development and managed by village or village group in a centralized way for sharing dividends, such as used for the development of shops, market, restaurant, hotel, factory, etc. 3 The Reconstruction House Land means the land to be allocated to the affected households who lose their house structures. The affected households could use the land to build their residential houses or residential houses with shops 61

62 Table 7-1: Entitlement Matrix Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Permanent State-Owned Land: Baise Land Resources Bureau Compensation rate is CNY 50,000/mu for the state land acquisition mu of state-owned land (enterprise owned land. (505 land) will be acquired permanently. households and 2,933 Cash or cash plus reconstruction land will be Land Compensation rates paid to VCs: CNY persons, provided to all APs affected by permanent land 47,824.56/mu for paddy land, CNY 45,382.86/mu including 144 acquisition. for dryland, CNY 50,144/mu for vegetable land, urban CNY 8,750/mu for wood land, CNY 19,600/mu for households orchard land, CNY 31,883.04/mu for greening and 483 urban land, CNY 40,118.96/mu for fish pond, CNY populations 50,000/mu for homestead, and CNY 1,200/mu for and 361 rural waste land. households and 1,445 rural population) Collective-Owned land: mu collective-owned land will be acquired permanently for the Project, including mu in Dawan Village ( mu paddy land, mu dryland, mu vegetable land, mu orchard land, mu greening land, 40 mu fish pond, and mu homestead land); mu in Nabi Village (14.70 mu paddy land, 3.12 mu dryland, 7.04 mu vegetable land, 2.60 mu orchard land, and mu homestead); and mu in Dawang Village (7.063 mu paddy land, mu dryland, and mu vegetable land). Land compensation for the rural collective land acquisition will be paid to the affected village committees. The VCs will keep a proportion (usually about 30%) of the land compensation paid to them as development fund, i.e. for the development of reconstruction land, and the rest proportion will be re-allocated to the APs based on the village meetings to decide how to use and re-allocate the fund. Resettlement subsidy and standing crops will be paid to the affected households directly. The reconstruction land for tertiary industry development will be allocated to the affected village/production group (see Section ). Land related taxes will be paid to the municipal LAB, including management fees of land acquisition, land administration fees, and others. Resettlement subsidy and standing crops rates paid to APs: CNY 60,019.24/mu for paddy land, CNY 57,419.23/mu for dryland, CNY 70,515/mu for vegetable land, CNY 10,000/mu for wood land, CNY 22,400/mu for orchard land, and CNY 32,596.66/mu for fish pond.. Reconstruction land will be allocated to the APs for tertiary industry development, which will be managed by the village collective for the development of profit making. The village collective will retain 30% of the dividends and the remaining 70% of the dividends will be directly disbursed to the APs. Agency Responsible PMO, GBDIGCL, BLRB, and RO The Project owner will give the APs priority to be employed in the activities of project construction and operation 62

63 Type of Losses Temporary Land Occupation (17 AHs or 78 APs) Residential structures and auxiliaries (38households or 226 persons) Level of Impact Entitled Persons Compensation Policy & Standards A total of 75 mu rural collective land will be occupied, including mu in Dawan Village ( mu dryland and mu waste land); and mu in Liantang Village ( mu dryland, and 3.151mu waste land) A total of 9,770 m 2 residential structures will be demolished, including 2,514 m 2 brick-concrete, 3,940 m 2 brick-tiles, and 3,310 m 2 simple structures. Cash compensation will be paid to the APs for the loss of standing crops Contractors will get land recovery fee to be responsible for land recovery Households (38 households with structure certificates) All affected APs will be provided with cash or cash plus reconstruction house land. The reconstruction house land will be constructed in a centralized way, or the APs purchase the houses in other communities of the city. All APs will be compensated for structures built before the cut-off date determined by BMG. The cut-off date will be determined by BMG in collaboration with relevant organizations involved, including PMO, IA, BLRB, BHDAO, and district government. Illegal land-use, construction of temporary structures after the notification of cut-off date will not be compensated. BMG, IA, BLRB and BHDAO could take photos/video of the places on the cut-off date to prevent further influx beyond the cut-off date. BMG will publicize the cut-off date on newspaper of Baise Dairy and village bulletin board once the date is decided. For the 144 urban households, they will get compensation for their house demolition. CNY 2,000/mu for dryland; and CNY 1,200/mu for waste land Compensation for the affected structures at full replacement costs of materials and labors with no deduction for depreciation or salvageable materials. Three types of the reconstruction house land allocation will be provided to the relocated families: 60 m 2, 80 m 2, and 100 m 2. The compensation standards for structures are: CNY 920/m 2 for brick-concrete, CNY 640/m 2 for brick-tile, and CNY 400/m 2 for simple structure. Relocation allowance will be paid to the AHs in cash at CNY 500/household and CNY 500/household for 6 months for temporary transitional allowance., if cash compensation is selected, will be provided with temporary one-time transit allowance at the rate of CNY 500/household/month, with a total of 6 months or CNY 3,000 per household. If reconstruction house land is selected, the APs receive the compensation at the rate of CNY 500 per month from the date of signing the compensation agreement for demolition and resettlement Agency Responsible PMO, GBDIGCL, BLRB, and RO PMO, GBDIGCL, RO, BLRB, BHDAO, Youjiang District Government, and VCs 63

64 Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Relocation allowance in cash will be provided to the APs. Transitional allowance will also be paid to APs. between the relocated persons and the project units to the date when the reconstruction houses are delivered and plus one more year for house construction. Agency Responsible Auxiliaries Non-residential structures of two enterprise (1,005 staffs) A total of 22, m 2 brick-concrete non-residential structures will be demolished The APs will be provided cash compensation at replacement value. Affected owner (State-owned enterprises) Cash compensation will be provided to the affected owner. All structures built before the cut-off date will be compensated. The cut-off date will be determined by BMG in collaboration with relevant organizations involved, including PMO, IA, BLRB, BHDAO, and district government. Illegal land-use, construction of temporary structures built after the notification of cut-off date will not be compensated. BMG, IA, BLRB and BHDAO could take photos/video of the places on the cut-off date to prevent further influx beyond the cut-off date. BMG will publicize the cut-off date on newspaper of Baise Dairy and school bulletin board once the date is decided. Cash compensation will be paid to the affected entities: Compensation for the affected land of the enterprises is CNY 50,000/mu. The structures at full replacement costs of materials and labors with no deduction for depreciation or salvageable materials. The compensation standards for structures are: CNY 920/m 2 for brick-concrete structures. BMG will arrange for the construction land use for the relocated Baise Mining Machinery Manufacturing Plant in the Baise Industrial Park, and provide necessary policy support. Baise City Grain Co. will not be re-built. Relocation allowance will be paid to the affected owner in cash at CNY 8/m 2. PMO, GBDIGCL, RO, BLRB, BHDAO, Youjiang District Government, and VCs PMO, GBDIGCL, RO, BLRB, BHDAO, Youjiang District Government, and VCs 64

65 Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Agency Responsible Affected staffs Relocation allowance in cash will be provided to the affected enterprises. Cash compensation for lost of working days will be paid to the affected staffs Employees will get the same income as before from the company. Basic infrastructures and special facilities Vulnerable APs (10 households or 24 persons, including 7 households with 11 persons under five guarantees and 3 25 road light poles, 3 telephone booth, 3 transformers, 1,357 m water culvert, 4 sighs, 5 hydrants, 2 statues, 48 power hafnium poles, 56 telecommunication line hafnium poles, 15 inspection wells, 4,500 m water pipes, 3,100 m sewer pipes, 3,430 m communication line, 3,700 m low voltage power line, 4,000 m high voltage power line, 500 m underground cable, and 500 m underground fiber optic cable. For the five guarantees households, they will lose average 0.67 mu of land, with the income loss averaged at less than CNY 100 per household per year; and for the female-headed households, they will lose partial income from agricultural activities at about CNY 200 / capita to CNY 400 / capita per month Affected Owners Affected vulnerable APs Cash compensation will be paid to the enterprise by the IA, in turn the enterprise will pay to the affected staffs at CNY 500 per person for the lost of working days. Cash compensation will be paid to the affected owners: CNY 5,000/each for road light pole, CNY 20,000/each for telephone booth, CNY 100/each for transformer, CNY 3,000/m for water culvert, CNY 2,000/each for sign, CNY 30,000/each for hydrant, CNY 100/each for statue, CNY 100/each for power hafnium pole, CNY 800/each for telecommunication line hafnium pole, CNY 100/each for inspection well, CNY 100/m for water pipes, CNY 250/m for sewer pipes, CNY 350/m for communication line, CNY 500/m for low voltage power line, CNY 400/m for high voltage power line, CNY 400/m for underground cable, and CNY 500/m for underground fiber optic cable. For the vulnerable households, the local Civil Affair Bureau will provide CNY 200/month/person to these vulnerable households. A minimum earning of CNY 670/month (minimum wage standard) is guaranteed if the vulnerable households could find jobs generated by the Project. The following provisions will be provided to vulnerable groups to rehabilitate their income: 1) training without charge will be provided to them to increase the knowledge PMO, GBDIGCL, RO, Youjiang District Government, and VCs PMO, GBDIGCL, RO, Youjiang District Government, and VCs 65

66 Type of Losses households with 13 persons female-headed) Level of Impact Entitled Persons Compensation Policy & Standards and skills of the vulnerable groups; 2) provision social safeguard program; 3) provision of employment opportunities generated by the Project and provision of employment information to the vulnerable groups; and 4) provision of micro-credit to them. In addition, specifically for the 7 households or 11 persons enjoying five guarantees, during the resettlement process, Baise Municipal Government and IA will provide them priority to select the house location and floors or provide the necessary assistance to them during the resettlement process, and also provide them labor and transportation assistance without charge. For the 3 female-headed rural families or 13 persons, in addition to the above mentioned cash compensation and income rehabilitation measures, Baise Municipal Government will provide them necessary supports during resettlement process and also assist them to get access to small credit from banks. Agency Responsible 66

67 VIII RESETTLEMENT AND REHABILITATON PLAN 8.1 Objectives and Principles of Resettlement Program 151. The overall objectives of the resettlement program are for the affected people to be offered with livelihood opportunities, for the labor force to be resettled properly, and for the living and production conditions of the APs to be improved or at least not worse-off than before the Project. The basic principles of the resettlement and rehabilitation plan are as follows: i) Compensation should be paid in cash or cash plus reconstruction land in resettlement sites for the land loss families, and cash or cash plus reconstruction house land in resettlement sites for relocated families; ii) Development resettlement is promoted. The livelihood rehabilitation plan will be based on the provision of: a) various employment and income generation opportunities during the Project construction and operation phases; b) development of self-employed tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment, catering and hotel services, and tourism); c) provision of technical training to the APs to increase their skills to be employed in other institutions and enterprises, and d) provision of social insurance to the APs; iii) Implement the resettlement program properly, comply with related compensation policies, and ensure that the production and living conditions of the affected people are increased or at least restored; iv) The resettlement plan should be prepared and implemented in accordance with state s land rehabilitation policy, national economic and social development plans. The needs and interests of state, collectives and individuals should be fully and equally taken into consideration; v) The APs should be consulted for the development of the resettlement plan and for the compensation rates; and vi) Women s rights and interests should be fully taken into consideration of the Project. 8.2 Compensation and Rehabilitation Plan Resettlement Options and Plan Residential houses 152. The Project will relocate 38 households and 266 persons. A total of 9,770 m 2 private structures will be demolished. To maintain the social network of the APs, to keep their original living and work continuity, the compensation will be provided based on the BMG policies and regulations: cash or cash plus reconstruction house land in resettlement site, and auxiliaries at replacement value in cash. The APs will be resettled close to their original houses as much as possible. On this basis, Land Plot B06 in Longjing District has been selected as the resettlement site. Up to date, the water supply, power supply and road construction as well as land leveling have been completed. The new resettlement sites are 0.5 km to 3 km from their original houses Table 8-1a and Table 8-1b provide the summary resettlement choices preferred by the affected households. According to the latest field survey, 92% or 35 households would like to choose reconstruction house land in resettlement sites plus cash compensation, and 8% or 3 households will purchase commercial houses or economy houses. 67

68 Table 8-1a: Resettlement Choices of the Affected Households Resettlement Choices of the Affected Persons (No.) Reconstruction Cash Compensation Total House Land + Purchase of Commercial Purchase of Economy Households Cash House House Total % 100% 92.1% 5.26% 2.63% Table 8-1b: Resettlement Sites Selected by the Affected Households Resettlement Choices of the Affected Persons (No.) Total Households Close to Original Place Other Sites Private Structure Dawan Village of Longjing District Total % 100% 92.1% 7.90% 154. In order to fully take into account the wishes of the affected persons in combination with Baise City Urban Master Plan layout, BMG has preliminarily planned the reconstruction land and/or reconstruction house land in two resettlement sites for the Project in Longjing District of Baise City. The resettlement sites will be planned in a centralized way, and the IA will be responsible for Three Access and One Leveling, namely water, electricity and road access and land leveling. The resettlement homestead has three types: 60 m 2, 80 m 2, and 100 m 2. If the area of the original homestead is the same with the area of the resettlement sites, cash compensation will be applied. If the area of the original homestead is not the same with the area of the resettlement sites, replacement land will be applied. If the area of the original homesteads is not the same with the area of the resettlement sites, cash compensation in combination with replacement land will be applied. The compensation standards are as follows: i) The area of homestead for the APs is less or equivalent to 60 m 2, the reconstruction house land area of 60 m 2 will be arranged, and the area of reconstruction house land exceeds the area of old homestead, the APs will pay for the exceeded land area based on the calculation of compensation standards of rural collective land; ii) the area of homestead for the APs is more than 60 m 2 and less than 80 m 2, the reconstruction house land area of 80 m 2 will be arranged, and the area of reconstruction house land exceeds the area of old homestead, the APs will pay for the exceeded land area based on the calculation of compensation standards of rural collective land; iii) the area of homestead for the APs is more than 80 m 2, the land area of 100 m 2 will be arranged, and the area of reconstruction house land exceeds the area of old homestead, the APs will pay for the exceeded land area based on the calculation of compensation standards of rural collective land. ii) For the area of old homestead which is more than the reconstruction house land, compensation will be paid to the APs based on the compensation standards of rural collective land. For those who are qualified for household split (the original households have two or more children, and at least one child reaches 18 years old), there is surplus land remained after the reconstruction house land allocation, the methods will be implemented to meet the land arrangement for the household split: the surplus area is more 68

69 than or equivalent to 80 m 2 and less than 100 m 2 ; the reconstruction house land area of 80 m 2 will be arranged; the surplus area is more than or equivalent to 60 m 2 and less than 80 m 2 ; the surplus area is more than or equivalent to 100 m 2 and qualified for split out one household, 100 m 2 reconstruction house land will be arranged; for those could be splited into 2 households or more, the sum of the reconstruction house land is not more than the surplus land, the above three types of homestead area could be selected. Table 8-2 provides the resettlement scheme for the households to be relocated to the resettlement sites. Table 8-2: Resettlement Scheme of All AHs (N=38 households) Site of Reconstruction House Land Area of Reconstruction House Land (mu) Village Group to Be Resettled AHs (No.) Dawan Village (Close to Road) 54 Dawan, Nabi and Dawang Villages APs (No.) Distance from Original Site (km) Total GBDIGCL, the IA of the Project will be responsible for ground leveling, road construction, and the supply of water and electricity of the resettlement area. According to Baise City Urban Master Plan, the surrounding areas of the resettlement sites will be well equipped with services and facilities such as hospital, financing services, business services, public traffic, school and entertainment For those 3 households who will chose cash compensation, they have two options at their willingness after receiving compensation for houses: 1) purchase of commercial houses from real estate company; and ii) economy house provided by BMG which is more close the downtown center. These families annual income is CNY 50,000 to CNY 100,000 per household, higher than the rest families. The compensation payment in addition with their savings, they are affordable to purchase ranges from CNY 130,000 to CNY 600,000. For those families who would like to take cash compensation option, their structure demolishment will be evaluated at the replacement value by the real estate evaluation agency, without depreciation for age. The compensation will cover the structures, location, years of structures, and decoration. The Project will ensure the APs will get fair and proper house size and quality. Of the 3 households who will choose cash compensation, the house structures of 2 households are brick-concrete and 1 household is brick-tile. The average area of brick-concrete houses is about 185 m 2, ranging from 142 m 2 to 390 m 2. For the loss of their structures, they will get CNY 920/m 2 cash compensation for brick-concrete structure, with average total compensation payment at CNY 170,200. They can use the compensation payment plus their savings to purchase new commercial houses with frame structures at the price of CNY 1,500 m 2. The size of the new houses ranges from 150 m 2 to 390 m 2. The average area of brick-tile houses is about 240 m 2, ranging from 205 m 2 to 270 m 2. The affected families will get CNY 640/m 2 cash compensation, with average total compensation payment at CNY 153,600. They can use the compensation payment plus their savings to purchase economy houses with frame structure at the price of CNY 900 m 2. The size of the new economy houses ranges from 210 m 2 to 300 m 2. The quality of their housing will be improved and the size of their houses will be equivalent with the ones or bigger than before the relocation During the resettlement process of the land acquisition and structure demolishment, some incentive measures and preferential policy will be adopted by 69

70 the Project, such as for the early signing of compensation agreement within 30 days after the publicizing demolishment. A reward will be given to the APs. As for the APs who sign the resettlement and compensation agreement after the publicizing of relocation and have moved out, they will be provided with CNY 5,000 per household as award. For those relocated families who complete their house construction according to the plan within the regulated time period, an award of CNY 5,000 per household will be provided. For those families who would like to purchase economy houses of the Government and meet the qualification criteria, BMG will provide them the housing sources at the preference of the APs For safety reason, the demolition of the structures cannot be carried out by the resettlers themselves. It should be demolished by the qualified house demolishment agency. However, the materials such as doors and windows can be disposed and re-used by the households themselves. The APs can sale the salvageable materials to make some money For the demolished houses which have already had the relevant property certificates, it is the responsibility of the demolishment agency to process the relevant certificates from relevant municipal departments. The costs will be covered by the demolishment agency, as well as the cost of certifying the new houses In addition, relocation allowance of CNY 500 per household will be provided to each affected household, and if APs choose cash compensation, temporary transitional allowance of CNY 500 per household per month will also be provided to the APs, totaling 6 months (i.e., total of CNY 3,000). If the APs choose the reconstruction house land, they will receive the transitional allowance of CNY 500 per month from the date of signing the compensation agreement for demolition and resettlement between the relocated persons and the IA to the date when the reconstruction houses in the resettlement site are delivered, plus one more year for house construction Non-Residential Structures 161. The Project construction will affect two enterprises of Baise City Grain Co. and Baise Mining Machinery Manufacturing Plant. According to the discussion result of stakeholders meetings hosted by BMG, it is decided that the Baise Mining Machinery Manufacturing Plant will be relocated and rehabilitated, and cash compensation will be paid. The Baise City Grain Co. has already been bankrupt and lost all of its function, cash compensation will be paid to the affected owners and remaining staffs, and no reconstruction will be made. In addition to the compensation for the structures, relocation allowance will be paid to the affected owners at the rate of CNY 8/m The Baise Mining Machinery Manufacturing Plant will be relocated to the new Baise Industrial Park. The Government will arrange for the construction land use in the industrial park, and provide necessary policy support. This industrial park is located in the eastern area of Baise City, the entrance of the highway to the city, namely, 500 m from the Nanning-Baise Highway exit and 10 km away from the present location. This industrial park will become the industrial base with concentration of various industries and convenient transportation. The industrial park has bus access for the employees to the plant without increase of transport costs. After relocation, the working environment of the enterprise will be improved. The current staffs will be relocated to the newly built factory. The plant will not be moved until the new plant has been built. The relocation will not result in any job loss. The 70

71 current employees will be re-employed in the newly built plant. The lost of working days will be compensated to each affected employee at CNY 500 per person as one-time payment. The payment will be made to the enterprise by the IA; in turn the enterprise will pay to the employees Baise City Grain Co., formerly Baise Grain Transport Team, was founded in 1974 and renamed as Baise Grain Transit Transportation and Trading Co. in 1992, and renamed as current Baise City Grain Co. in The company is state-owned enterprise under Baise City Grain Administration Bureau, mainly responsible for the grain transportation for military and domestic purposes in Baise City. Due to the poor management, debts and other reasons of the company, Baise City Grain Co. was closed in 2005, and movable equipment was sold, and all staffs were dismissed. According to the corporate restructuring reform policies of PRC in 2000, all the dismissed staffs were compensated based on the length of the time they have worked for the enterprise. For the remaining structures of the company, cash compensation will be paid and no reconstruction will be made. For the 105 persons remained to look after the warehouse structures and other matters in the company, they will be resettled in accordance with the relevant laws and regulations of corporate staff dismissal in Baise City. Each month, they will get their current salary ranged from CNY 300 to CNY 400 for their living. Table 8-3 provides the resettlement plan of affected enterprises. Currently their salary obtained from Baise City Grain Co. ranges from CNY 300 to CNY 400. After the structure demolition of the company, they will get the same income as before from the company. Table 8-3: Resettlement Plan of Affected Enterprises Nature Name of Enterprise Resettlement Plan The production area of Baise Mining Baise Mining Manufacturing Plant Manufacturing Plant will be demolished and Public Enterprise moved to Baise City Industrial Park. Baise City Grain Co. Cash compensation without reconstruction Rehabilitation Plan for Affected Households by Permanent LA 164. The construction of urban road network project will permanently acquire mu of state-owned land, and the compensation will be directly paid to the affected owners. The land acquisition of rural collective land will affect 3 villages, mu of land, and 505 households or 1,928 persons. The proportion of land to be acquired only account for small proportion (7.8%, 0.4% and 0.4% respectively) of the rural collective land in each village. After land acquisition, no reallocation of land will be made. Except a proportion of compensation will be retained by the VC as development fund (i.e. for the development of reconstruction land), the remaining compensation fund for land loss will be directly paid to the APs. For the collective land acquisition, reconstruction land for tertiary industry development will be reserved in the resettlement sites in accordance with relevant laws and regulations. The village committees will develop the reconstruction land for profit making to solve the future livelihood of the APs. The resettlement will follow the relevant laws and regulations. In addition, the local government will follow the regulation of Temporary Method of Social Insurance for the Farmers Whose Land Acquired in Baise City to solve the future livelihood of the farmers Also in accordance with Notice for Acquisition Method of Collective Land in Urban District in Baise City (2005), reconstruction land for resettlement used for tertiary industry development could be adopted after the rural collective land acquisition. The reserved reconstruction land to be used for tertiary industry 71

72 development will be developed by village collective groups and to be managed by village groups in a centralized way. The reconstruction land will comply with the following standards: (1) If all land has been acquired from a village group, 40 m 2 of land per capita will be reserved according to the number of people. (2) If only partial of land will be acquired from a village group, the reconstruction land will be reserved according to the following calculation formula: Area of Reconstruction Land Reserved = Area of Land Acquisition Area of Original Farmland x 40 m 2 x Numbers of Population Since the village groups will be affected by partial land acquisition. Based on the calculation formula, the village groups can get 2 mu of reconstruction land. (3) If an average of 40 m 2 of reconstruction land per capita has been reserved, no further reconstruction land will be reserved in future for acquisition of remaining agricultural land. For the partial loss of land permanently, the second standard above will be adopted for the Project. The overall objective of income rehabilitation plan is to ensure that all APs losing their means of livelihood (in this case their land or working place) to the Project are able to at least maintain their pre-project levels of income and living standards. The income restoration plan applies to all 361 affected families in Dawan Village, Nabi Village, and Dawang Village. Due to Baise City Urban Road Network and Longwang Bridge projects, they will lose their agriculture income. The household survey indicates that 78% of their income comes from agricultural activity for Dawan Village, 75% for Nabi Village, and 80% for Dawang Village. As a result of the Baise City Urban Road Network and Related Municipal Infrastructures Project, the APs will lose 1.29% of their agricultural income per year or CNY 211. According to the income survey, the average annual net income of the APs in the Project area is CNY 2,820 per capita. The APs are also working as seasonal workers, working in downtown area or doing small business. Most of the labor forces aging between 18 and 40 have education level equivalent to or above that of junior middle school. As close to the urban districts, their other incomes come from commercial activities and migrant labor, except income from agriculture. Table 8-4: Income Loss Analysis Total Area of Village Group Land before LA (mu) Land Loss Ratio (%) Annual HH Income before LA (CNY) Annual HH Income Loss (CNY) Income Loss Ratio (%) Dawan 6, % 13, % Nabi 8, % 18, % Dawang 5, % 12, % Total 20, % 16, % 166. The land loss will not only result in the livelihood of a family, but also their future employment. Of the total 505 affected households and 2,933 persons to be affected by the Project, 1,752 persons are in labor force who need income rehabilitation. According to the result of the surveys and consultation, the farmers do not want to engage in agricultural activities any more, and would like BMG provide them with reconstruction land with the ground level of house close to street which could be used as shops, and they also would like BMG to provide them employment 72

73 opportunities and technical training assistance The following income rehabilitation measures are recommended to be carried out to improve their income: i) providing them the reconstruction land (reserved land for livelihood) close to street which could be used as shops for rental income; ii) providing technical skill training and employment opportunities to the APs, especially for the job requiring large amount of labor forces; iii) development of service industry, such as cloth selling, grocery store, food catering service, hairdressing salon, dry cleaning, motorcycle transportation service in urban districts, taxi service, hotel service, tourism business, and other businesses; iv) provision of social insurance; v) providing employment opportunities generated by the construction and operation of the road network and bridge; and vi) reconstruction land reserved for tertiary industry (the reconstruction land area reserved for tertiary industry development will be calculated in accordance with the above formula and reserved to collective village groups and managed in a centralized way by village groups to be used for development to profit making. The APs will get 70% dividends from the profit making and the collective village 30% to be used for pension and village collective public welfare activities) To mitigate the impacts of APs who lose their land and identify future livelihood opportunities, the "Implementation Method of Social Security for the Farmers Whose Land Acquired in Baise City" (Chong Zheng Fa [2008] No. 118). BMG will allocate the APs with the reconstruction land close to street in the settlement sites. The reconstruction land will be planned, designed and constructed, and will be managed by the village groups in a centralized way. It is planned that the reconstruction land in the resettlement sites will be used to build commercial shops for rental income generation. Based on the reconstruction land allocation standard, a total of 1,333 m 2 or 2 mu of land will be reserved as the reconstruction land. It is planned that three storey building will be built with a total of over 4,000 m 2 space as shops. It is expected that the rental income will be CNY 120/m 2 per month, or CNY 5.76 million per year in total. Thus, each affected household could get about CNY 11,405 rental income dividends per year, or CNY 3,150 per person. In comparison with the income loss compensation of permanent land acquisition at CNY 29,056per household, the income of the APs will be increased greatly. As the new resettlement sites will have better transportation access in comparison with before, and are within the planned urban road networks, and the urban development, economic development will attract more flow of people and goods and development of related industries, which will provide good opportunities for the commercial property rental business The land compensation for the land loss will be paid to the affected village committees which in turn will use it as investment fund for the development of the reconstruction land in the resettlement sites. In total, the villages committees will get CNY million and the resettlement subsidy for the land loss and standing crops will be paid directly to the APs at the amount of CNY million. The APs could use the compensation payment for other tertiary industry development which is described in Section Employment Opportunities Generated by the Project With the implementation of the Baise City Urban Road Network Component and Longwang Bridge Component, more job opportunities will be created and employment priority will be given to the affected labor force. The Baise Urban Road Network and Related Municipal Infrastructures Component and Longwang Bridge Component will speed up the urban infrastructure construction and is conducive to the development of 73

74 tourism industry in Baise City and improve people's quality of life around the lake area. The Project could also stimulate the flow of people and goods, and promote the local economic development. According to the Baise City Henan New District Control Plan and Urban Design, the Henan New District will be developed as the comprehensive new urban district in Baise City to form an administrative center, cultural center, education center and commercial center. The Project construction will bring in bright commercial and employment opportunities to the local residents. By this way, the APs will benefit from the Project. Table 8-5 provides the annual job opportunities and estimated salary of the potential job positions in next five years. The BMG will coordinate with relevant departments, including the owners of the job positions, labor and social security bureau and district government to arrange the APs to be employed for these job positions. For the 1,752 persons in labor force to be affected, the APs will get employment before or immediately after they lose their land. The government will assign the quotas to the owners of the job positions to ensure that the APs will be able to secure such jobs. In comparison with their income from agricultural farming at over CNY 2,820 per capita, the income of the APs from the jobs available in Table 8-5 will be much higher than before land acquisition. Ethnic Minority households will be also be given preference in jobs in construction and maintenance activities of the project. Table 8-5: Annual Job Opportunities Created by the Project and Urban Development in Baise City Average Type of Job Annual Job Monthly Income Annual Income Opportunities Earning (CNY) Earning (CNY) Remark (No.) Construction and indoor decoration Temporary workers during the Project construction 900 1,500 4,000 18,000 36, ,200 1,500 14,400 18,000 Sales person 600 1,500 2,000 18,000 24,000 Transportation 400 2,500 3,000 30,000 36,000 Service 1,500 1,000-1,500 10,800-18,600 Office staffs 550 1,000-2,000 12,000-24,000 Other commercial business 4,000 1,500-3,000 18,000-36,000 Total 8,350 Mainly for the house construction and road construction Job opportunities during the Project construction phase include security guard on site, porters, construction workers, etc. Mainly shops within the city or along the street, real estate sales person, and shopping plaza sales persons Passenger transport and cargo transport in Baise City, and taxi drivers. Food and catering service, hotel, and domestic house keeping Secretaries of corporate and enterprises Beauty and hairdressing salon, clothes, grocery, maintenance, etc Development of Tertiary Industry 170. In addition to the livelihood rehabilitation measures from the development reconstruction land, for the land loss farmers, according to the survey conducted among the APs, 100% or 1,752 APs in labor force are willing to use the resettlement subsidy and standing crops compensation as seed money to develop the tertiary industries. Women are more suitable for the above-mentioned employment and 74

75 income generating opportunities. Actually they account for about 42% of the 1,752 labor force, they will benefit the same from the income rehabilitation program as men. After the affected villagers get their compensation payment, they will be engaged in the new businesses in Henan New District. During the arrangement of new employment opportunities, BMG pays great attention to the production resettlement of the affected women, especially the establishment of business for hairdressing salon, grocery store, restaurant, domestic housekeeping, handicraft workshop, sales of tourism products, etc. which are very suitable for the employment of women. Based on the socioeconomic survey and discussion/consultation results with the APs, the affected 505 households who need livelihood rehabilitation will set up grocery store (36 households/ 93 APs), food catering service (41 households/ 115 APs), hairdressing salon (53 households/ 186 persons), dry cleaning (35 households/ 123 persons), motorcycle transportation service for urban districts (62 households/ 217 APs), clothing shop (30 households/ 144 APs), and taxi service (41 households/ 110 APs), hotel service (58 households/ 196 APs), tourism (56 households/196 persons), and other business (93 households/ 372 APs) to rehabilitate the loss of income from agricultural farming. Since the APs will be receiving a resettlement subsidy over CNY 62,910 per household on an average, the amount is sufficient for them to start a new business. The APs will use the compensation payment to establish their new business which is expected to take about two to six months. The income of the APs to be generated from the new businesses could be stabilized two months after the opening of the businesses. They will use part of their compensation payment to invest in their new businesses and the remaining will be used as circulating fund or for education of their children BMG plans to arrange the APs to the two resettlement sites of Dawan Village of Longjing District close to the road. The locations are close to the commercial center or tourism development zone with a very good location. With the development of the city, the new location with large flow of population, big demand for the services of tertiary industries as well as services and business markets provides good prosperity of market for the APs. Of the total 38 households with 226 APs, many will be affected both by house demolition and land acquisition and will be resettled with the provision of reconstruction house land which they could build houses with upper levels as living space and ground level as shops, thus the APs could easily open their new business, or rent out their shops at group floor for rental income generation. Based on the size, quality and location of the shops, they could make average CNY 4,000 to CNY 6,000 rental income per family per month at minimum. This income source is much better than CNY 2,820 per capita from their agricultural activities. Therefore, the income rehabilitation measures could ensure their future livelihood after land loss For the grocery store, the initial investment for each business establishment is CNY 15,000, of which CNY 5,000 is used for circulating fund and CNY 10,000 for purchase of goods. It is expected that the number of customers will be about 25 persons per day and the average expense is CNY 8.0/day. As a result, the annual gross income is CNY 73,000. With deduction of the total annual expenditure of water and electricity bills at CNY 3,000 (equivalent to CNY 250/month), employees salary at CNY 9,600 (one employee), various business taxes and other costs at CNY 5,000 and investment at CNY 20,000, it is expected that the annual net income is CNY 35,400 (CNY 2,950 per month equivalent) For the food catering service (regular fast food and rice noodle house) employment option, the total initial investment is CNY 15,000, of which CNY 10,000 is used for annual space rental cost (if shop owner, the rental cost will be the investment cost), CNY 3,000 for purchase of equipments, and CNY 2,000 for circulating fund. The estimated number of customers is 40 persons and the average expense of the 75

76 business is CNY 3.5 per day. As a result, the total annual gross income is CNY 51,100. With deduction of the annual total expenditure at CNY 15,000, CNY 4,800 as water and electricity charge (CNY 400 per month equivalent), CNY 5,000 as various business taxes and other costs (CNY 420 per month equivalent), the annual net income will be CNY 26,300 (CNY 2,200 per month equivalent). The Project will not acquire 100% of the land from the APs For those who choose hairdressing salon, the initial investment is CNY 30,000, of which CNY 10,000 used as rental cost, CNY 6,000 for equipment purchase, CNY 10,000 as house renovation, CNY 4,000 as circulating fund. It is estimated that the lowest customer flow is 15 persons per day. With average consumption of CNY 15/capita/day, the total annual income is CNY 82,125. With reduction of CNY 30,000 as the investment, CNY 7,200 as water and electricity costs (CNY 600 per month equivalent), CNY 8,000 as various business taxes and other costs (CNY 660 per month equivalent), the annual net income will be CNY 36,925 (CNY 3,000 per month equivalent) For those who choose dry cleaning employment option, the initial investment is CNY 40,000, of which CNY 30,000 for equipment purchase, CNY 10,000 as rental cost. It is estimated that the customer flow is 17 persons per day. With average consumption of CNY 20 per person per day, the annual gross income will be CNY 124,100. With deduction of CNY 40,000 as investment, CNY 15,000 as water and electricity costs (CNY 1,300 per month equivalent), CNY 8,000 as various business taxes and other costs (CNY 660 per month equivalent), the annual net income will be CNY 61,100 (CNY 5,000 per month equivalent) For the motorcycle transportation service option, the total initial investment required is CNY 6,000, of which CNY 4,500 is used for the purchase of motorcycle and CNY 1,500 for the cost of the business charge. The estimated passengers are 30 persons every day. The transportation price is set at CNY 3.00 per person. The total annual gross income will be CNY 32,850. With the deduction of total annual expenditure at CNY 6,950 including CNY 1,500 as annual management charge, CNY 5,000 as gasoline consumed, and CNY 450 as depreciation of vehicle, the annual net income will be CNY 25,900 (CNY 2,150 per month equivalent). The Project will not acquire 100% of the land from the APs For retail clothing shop (middle level) option, the total initial investment is CNY 12,000, including CNY 8,000 as annual space rental cost, CNY 4,000 as purchase of clothing. It is estimated that 10 clothes will be sold every day. The average gross profit is CNY20. As a result, the annual gross income is CNY 42,000. With deduction of total investment and other expenditures at CNY 12,000, and various business taxes and other costs at CNY 3,000, the annual net income is expected at CNY 27,000. The Project will not acquire 100% of the land from the APs For taxi driver option, the expected annual income is CNY 20,000 (CNY 1,600 per month equivalent as salary). In addition to the income of CNY 15,000 per year from other family members, the annual net income will be CNY 35,000 at lowest. The Project will not acquire 100% of the land from the APs For the above tertiary industry development as livelihood rehabilitation measures, the APs could use the compensation of resettlement subsidy and standing crops as initial investment. As each household could get average compensation of CNY 36,400, it is adequate for them to invest in their new businesses. 76

77 180. For those who will choose to be employed in the nearby factories, commercial and retail enterprises, supermarkets, and domestic housekeeping and hotels through free technical training provided by BMG or relevant institutions, their monthly income is expected to reach CNY 900 to CNY 1,500. If the technical requirement for the job is higher, their monthly income could reach to CNY 1600 to CNY 2,000, and estimated annual income will be CNY 10,800 to CNY 24,000. In comparison with their previous annual income at CNY 2,820, their income after land acquisition is much higher In order to effectively restore their livelihoods and income of the APs, BMG will work with relevant departments, owners of enterprises, Labor and Social Security Bureau, and district government to assist the APs to engage in the tertiary industries as presented in Table 8-6. Table 8-6: Engagement of the APs in Tertiary Industries Type of Business No. of AHs (APs) to Initial Investment Expected Net Income Be Engaged (CNY) (CNY/Year) Grocery Store 36 (93) 15,000 73,000 Food catering service 41 (115) 15,000 51,100 Hairdressing salon 53 (186) 30,000 82,000 Dry cleaning 35 (123) 40, ,000 Motorcycle transportation service 62 (217) 6,000 33,000 Clothing shop 30 (144) 12,000 42,000 Taxi driver 41 (110) 70,000 36,000 Hotel service 58 (196) 0 12,000 Tourism 56 (196) ,000 Other services 93 (372) 12,000-50,000 50, ,000 TOTAL 505 (1,752) 182. The above different livelihood activities could provide annual net income of about CNY 28,760 to the affected households (average net income per capita is CNY 6,910). IN comparison with the average annual net income of CNY 2,820 per capita, they can get an increase of CNY 4,090 per capita for their annual net income. As a result, the income of the APs could be increased, and their living condition could be improved greatly Social Insurance 183. In addition to the above proposed income rehabilitation measures, Baise City Government will provide social security system for rural APs in terms of social pension insurance, medical insurance and employment insurance to ensure the livelihood of the APs. The Guangxi Zhuang Autonomous Region Government issued Method on Implementing Social Security System for Rural APs in Guangxi Zhuang Autonomous Region (Trial) in March Based on the document, Baise City Government has issued Method on Implementing Social Security System for Rural APs in Baise City, which states clearly on issues relating to the social pension insurance, medical insurance and employment insurance for rural APs whose land is acquired. For the social insurance, 30% contribution will come from the local government and 70% from rural collective and farmers (The land loss farmers pay 20% based on the 40% of the average wage of the urban workers in last year). All APs would like to pay for the social insurance as it will ensure their livelihood for their whole life in future. 77

78 184. In light with the Method, the social insurance fund for rural APs will be raised from APs, collective and local government, among which the percentage contributed by APs and collective will be no more than 70% and the percentage contributed by local government will be no less than 30%. The contribution of APs and collective mainly comes from land compensation payment. The contribution of local government comes from income generated from the state-owned land use rights transfer. Rural APs who participate in the social insurance and perform the obligation of payment will enjoy pension per month after the age of The rural APs will be covered by the local medical care insurance according to the residence management principle. The rural APs whose registration has been changed to unemployed urban residents will be covered by urban residents basic medical care insurance. The rural APs whose registration remains the same as before will be covered by new-type cooperative medical care system. Migrant workers who are still registered as rural residents as well as urban employers who are registered as urban residents will be covered by urban residents basic medical care insurance. Self-employed will also be covered by urban residents basic medical care insurance. Furthermore, APs who live under the urban residents MLG or rural poverty MLG will be covered by local urban residents MLG scheme or rural poverty MLG scheme, respectively With the proper implementation of the above mentioned mitigation measure, the living standard and income level of APs will be improved. Survey of 1,752 labor force in the affected families, indicates that 95% of them consider they could get reasonable compensation for land acquisition and house demolition. The survey also indicates that after resettlement, the income of the APs will have significant increase (see Table 8-7). 78

79 Table 8-7: Survey on Income Rehabilitation Before Resettlement No. of Surveyed Rural Labor Forces Occupation Annual Net Income Occupation Initial Investment (CNY 10,000) After Resettlement Monthly Rental Cost (CNY) Production Value (CNY/year) Annual Net Income (CNY 10,000) (CNY/Capita) 93 Farming 2,820 Grocery stores 15, , Farming 2,820 Catering stores 15,000 1,000 51, Farming 2,820 Hairdressing salon 30,000 1,000 82, Farming 2,820 Dry cleaning 40,000 1, , Farming 2,820 Motorcycle transportation service 6,000 33, for urban districts 144 Farming 2,820 Clothing shops 12, , Farming 2,820 Taxi service (company) 60,000 50, Farming 2,820 Hotel service Farming 2,820 Tourism , Farming 2,820 Other services 12,000-50,000 1,000 50, , In total: 1,752 persons in labor forces. Note: One person in labor force was surveyed from each household to be affected by permanent land acquisition. 79

80 8.2.6 Project Related Income Generation Opportunities 187. During the Project construction phase, APs can seek some income generation opportunities, mainly providing services related to the Project construction, such as renting spare houses (if available) to the construction contractors as temporary office or to the construction workers as residence, operating grocery kiosks, and providing food, cigarettes and breweries to the construction teams. Also during the construction period, the PMO and IA will offer 320 person-years temporary employment job opportunities, such as excavation for pipeline and structures and soil and earth transportation During the Project operational period, the APs with suitable qualifications will be employed and receive on-the-job training. Women and the poor will be given priority to be employed by the Project. After the constructions of the resettlement site have been completed, it is planned that 70 public welfare position jobs shall be provided for the APs based on discussion with the IA: 30 landscape workers, 10 road maintenance, 10 safeguard and 20 cleaners. The ratio of employment for men and women will be 1:2. The salary will be between CNY 600 to CNY1,200 per month. As a result, the APs could get access to additional income generation opportunities and additional income. Therefore, the APs will benefit from the resettlement of the Project Provision of Technical Training to the APs 189. In recent years, with the rapid development of Baise City s economy and the establishment of the Beibu-Gulf Economic Development Zone, the improvement of urban infrastructure and sectors in good advantages have experienced fast development in Baise City, in particular the accelerated development of bauxite, hydropower, real estate, logistics, services and tourism industries which will generate a lot of job opportunities. The technical workers and social service labors will be in shortage In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the RO and IA will cooperate with the departments of Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the relocated APs. The technology training will be consistent with the district economic features, requirements of the labor market and the enterprises to ensure that the training is practical, efficient and targeted By taking into consideration of lack of working skills for the major labor force of the affected households, especially women, the IA will ensure that at least 50% of the trainees will be females. After training of occupational skills, the APs could get jobs in the city. A total of CNY500 per person has been budgeted as training cost to cover the cost of training provided to the APs The training will be carried out twice a year, commenced from June 2012 and last till December The training will be implemented in association with local district government, VC, WF, and vocational education department. The training will be provided to all APs with labor force, especially the women. For each training, at least 50% of women should be included. The training includes: (1) Grocery store operation and management; (2) Beauty and hairdressing; (3) Operate, maintenance and repair of motorcycles and vehicles; (4) Car decoration and management of cleaning and washing accessories; (5) Dry cleaning operation and management; 80

81 (6) Sales of souvenirs, tourism operation and management; (7) Food, catering and hotel services, and domestic servant services; (8) Public security guard, cleaning, public aesthetic landscaping, maintenance of public facilities, management of parking lot, and others; and, (9) Sales of products, small business registration and operation; etc Rehabilitation Plan of Ground Attachments and Infrastructure 193. The compensation of ground attachments, including infrastructures and special facilities will be based on the replacement value according to the relevant documents of compensation standards. Compensation in cash will be paid to the affected owners to reconstruct the ground attachments The units with property rights will be in charge of the rehabilitation and reconstruction. The rehabilitation measures of the ground attachments should be planned in advance. In practical operation, these measures should be suitable to local conditions to ensure safe, efficient, timely, and accurate, and try to minimize impacts on the local residents For the relocation of affected municipal infrastructures and special facilities, the relocation should be carried out according to the Project construction maps and drawings. The relocation of the affected municipal infrastructures and special facilities should be reduced as much as possible on the premise that the constructions do not affect the residents Special Concerns during Resettlement Process Gender Issue 196. According to the Chapter of Women and Economy documented in Women s Development Plan of Guangxi Zhuang Autonomous Region ( ), it clearly stated that The rights of women for work should be protected, it should be ensured that women enjoy the equal right with men on economic resources, the discrimination to women should be forbidden, women and men should have equal status for employment, and women s labor rights should be protected. Thus, women have equal entitlement and rights with men for employment and training in the Project The household surveys showed that women from AP families are generally lacking of working skill other than housework skill. They are in inferior position of looking for job opportunities when competing with men. They usually work outside as seasonable labors or run a small business. Women take more responsibility for the family especially for those with female as the head of a household. The future welfare of women to be affected is important. Therefore, special attention will be paid to women s special concerns, such as compensation payments, training programs, and other assistances, to reduce any special social risks caused by the implementation of this Project Women will be eligible, on an equal basis, for all compensation payments, training programs and other assistances to be provided. The reconstruction land and/or reconstruction house land allocated for resettlement and compensation payment should belong to both wife and husband of a household. In order to protect the properties of the APs, both the names of wives and husbands should be written on the property certificates of houses. In order to ensure this, the IA will carry out explanation and propaganda work to the community women and closely involve them in the resettlement process. 81

82 199. The IA, RO, WF, and VCs have reached agreement that WF will involve in guiding consultation and public participation for income rehabilitation activities in combination with their current ongoing programs so that female APs can make sufficient earnings for a sustainable livelihood after house demolition Assistance to Vulnerable Households 200. Of the total affected, 10 households with 24 persons, including households enjoying five guarantees, households living under MLG, and households with female-headed, are identified as vulnerable groups during the measurement and socioeconomic surveys during ADB PPTA phase. Details for status quo of affected vulnerable group are showed in Table 2-9. The local Civil Affair Bureau and Human Resource and Social Security Bureau will be responsible for including these households into the social safeguard program. The local Civil Affair Bureau will provide CNY 200/month/person to these vulnerable households. A minimum earning of CNY 670/month (minimum wage standard) is guaranteed if the vulnerable households could find jobs generated by the Project. The following provisions will be provided to vulnerable groups to rehabilitate their income: 1) training without charge will be provided to them to increase the knowledge and skills of the vulnerable groups; 2) provision social safeguard program; 3) provision of employment opportunities generated by the Project and provision of employment information to the vulnerable groups; and 4) provision of micro-credit to them Of the total affected vulnerable households, 7 households or 11 persons enjoying five guarantees (Households Given / with / Receiving / Enjoying Five Assurances / Promises) who are long-term sick without labor force and income source, and family member to support them or disabled, and they live on the subsidy of the government. They have 3 mu to 8 mu of farmland, they are not substantially engaged in farming activities, the permanent land acquisition will result in 0.67 mu of land loss, with the income loss averaged at less than CNY 100 per household per year. Each household will get about CNY 42,000 cash compensation for their land loss, they can use this money to improve their living standards. In addition, they still enjoy the same subsidy provided by the government. During the resettlement process, Baise Municipal Government and IA will provide them priority to select the house location and floors or provide the necessary assistance to them during the resettlement process, and also provide them labor and transportation assistance without charge For the 3 female-headed rural families or 13 persons, they are engaged in agriculture and temporary labor work. Their monthly net income from economic activities ranges from CNY 500 / capita to CNY 800 / capita. After land acquisition, they will loss partial income from agricultural activities at about CNY 200 / capita to CNY 400 / capita per month. In addition to the above mentioned cash compensation and income rehabilitation measures, Baise Municipal Government will provide them necessary supports during resettlement process and also assist them to get access to small credit from banks. Their future livelihood and income will be ensured and improved. 82

83 IX. COST ESTIMATES 9.1 Compensation and Resettlement Costs 203. The resettlement costs are included in the overall budget of the Project. The total cost of resettlement for the Project is estimated to be CNY million, equivalent to US$ million in 2011 prices, including 15% contingencies (physical and price). The estimated costs include compensation for collective land, residential structures, non-residential structures and auxiliaries, basic infrastructures and special facilities, other costs, land-related taxes, and contingencies. The detailed cost estimates of resettlement are presented in Table 9-1. The summary cost is presented in Table 9-2. Table 9-1: Detailed Cost Estimates of Resettlement Unit Price No. Item Unit Qty (CNY) Estimate Cost (CNY) 1 Permanent Land Acquisition 59,146, State-Owned Land mu ,213, Enterprise Land mu , ,213, Collective-Owned Land mu ,933, Paddy land mu , ,991, Dyrland mu , ,287, Vegetable land mu ,721, Wood land mu Orchard land mu , ,110, Greening land mu , , Fish pond mu , ,908, Waste land mu , , Homestead mu , , Temporary Land Occupation mu , Dryland mu , , Waste land mu , , Demolishment of Residential Structure and Auxiliaries 8,666, Residential Structure m 2 9,770 6,162, Brick-concrete m 2 2, ,312, Brick-tile m 2 3, ,525, Simple m 2 3, ,324, Relocation Allowance 1,767, Relocation allowance HH , Temporary transitional HH@ @6 months 1,515, allowance months 3.3 Auxiliaries 736, Fenced wall m 2 1, , Fruit trees No. 1, , Tomb No ,000 12, Non-Residential Structures 21,239,

84 Unit Price No. Item Unit Qty Estimate Cost (CNY) (CNY) 4.1 Non-Residential m 2 22, ,558, Structures Brick-concrete m 2 22, ,558, Relocation Allowance m 2 22, , Relocation allowance m 2 22, , Allowance for working day Person 500 1, , lost 5 Basic Infrastructures and Special Facilities 10,791, Road light poles No. 25 5, , Telephone booth No. 3 20,000 60, Transformers No Water culvert m 1,357 3,000 4,071, Sighs No. 4 2,000 8, Hydrants No. 5 30, , Statues No Power hafnium pole No , Telecommunication line No , hafnium pole 5.10 Inspection well No , Water pipes m 4, , Sewer pipes m 3, , Communication line m 3, ,200, Low voltage power line m 3, ,850, High voltage power line m 4, ,600, Underground cable m , Underground fiber optic m , cable Basic Costs of LAR 99,924, Other Costs 2,254, RP preparation 100, , Administration cost 0.5% of LAR costs 499, M&E 0.5% of LAR costs 499, Training cost 2,162@CNY 500/capita in labor force 1,155, Land-Related Tax 11,760, Land administration fee 985, Labor cost of land 7.2 Paid to GZARG (see the budget table of 412, acquisition Second District for Jingnan Phase II) 7.3 Land use chargeable fee 3,206, Farmland reclamation fee 4,350, Farmland tax Paid to BMG (see the budget table of 1,719, Hydro construction fund Second District for Jingnan Phase II) 1,087, Contingency 14,988,

85 No. Item Unit Qty Unit Price (CNY) Estimate Cost (CNY) 8.1 Physical 10% 9,992, Price 5% 4,996, TOTAL 128,928, Table 9-2: Summary Resettlement Costs No. Compensation Project Estimate Cost (CNY) 1 Permanent Land Acquisition 1 59,226, Demolishment of Structures and Auxiliaries 29,906, Demolishment of Infrastructure and Special Facilities 10,791, Other Cost 2,254, Land-Related Taxes 11,760, Contingency 14,988, Total 128,928, Annual Budget 204. According to the Project schedule, the project construction will take about 17 months to complete between March 2012 and July The annual cash flow is estimated to be 70% or CNY million in 2012, and 30% or CNY million in 2013, respectively. Table 9-3 provides the annual budget of resettlement cost. Table 9-3: Annual Budget of Resettlement Cost (CNY) Total Total Budge ( CNY10,000 ) 9, , ,893 Proportion of Total Budget (%) 70% 30% 100% 9.3 Flow of Fund 205. Fund related to resettlement will be distributed through the following channels (See Table 9-4): Table 9-4: Flow of Fund Permanent land acquisition of collective-owned land (100% land compensation)* Permanent land acquisition of collective-owned land (100% resettlement subsidy + standing crops) Reconstruction land dividends (70% to the APs) Reconstruction land dividends (30% to the collectives) BCDICL BLRB Township VC BCDICL BLRB Township VC APs BCDICL BLRB Township VC APs BCDICL BLRB Township VC APs 85

86 Residential structures demolishment BCDICL BHDAO Township VC APs Auxiliaries BCDICL BHDAO Township VC APs Relocation allowance BCDICL BHDAO Township VC APs Non-residential structure demolishment Basic infrastructures and special facilities BCDICL Affected Unit BCDICL Owners Investigation and design cost BCDICL Design institute Office administration costs BCDICL LAR implementation agencies Training cost BCDICL Training institutions M&E BCDICL IMA Note: The VCs will keep a proportion (usually about 30%) of the land compensation paid to them as development fund, i.e. for the development of reconstruction land, and the rest proportion will be re-allocated to the APs based on the village meetings to decide how to use and allocate the fund. Up to date, the land compensation has been paid to the VCs, but the proportion to remain and allocate hasn t be discussed and determined yet. 86

87 10.1 Principles X. LAR IMPLEMENTATION SCHEDULE 206. The resettlement schedule for land acquisition, structure demolition and resettlement for the Project will be coordinated with the respective construction schedule. Based on the time schedule of the Project, the land acquisition and resettlement schedule have been developed, reflecting the linkage and consistency between the time schedule of resettlement/land acquisition and civil works construction tasks In order to ensure that all aspects of the RP can be achieved, land acquisition will start at least one month before construction. The resettlement site should be constructed before old structures are demolished. Before the land acquisition and resettlement, a final measurement survey will be conducted in the affected village, and the contracts with each affected household will be negotiated and signed. The disbursement of compensation should be sufficiently paid. Also, arrangements for land acquisition and structure demolishment will be established before LAR proceeds LAR Implementation Schedule 208. Resettlement implementation will be scheduled in stages to coincide with the overall Project schedule between March 2012 and July The land acquisition started from October 2011 to June The construction of the resettlement sites will be implemented from June 2012 to March APs will get the allocation of reconstruction land and/or reconstruction house land in new resettlement sites from May 2012 to December There will no commencement of civil works until all compensation is paid and all livelihood rehabilitation measures are in place. In place means that all arrangements are made to commence rehabilitation and APs are registered for these. It is planned that the land acquisition shall be completed before the start of Project construction The LAR schedule has been divided into four stages: 1) Land Acquisition and Compensation Planning - Apply for and receive Planning Land Use Certificate, Construction Land Use Certificate, and Structure Demolition Certificate ; - Get approvals and acquire the land for the resettlement sites; - Conduct detailed measurement surveys of the affected area and houses to determine the specific losses eligible for payment of compensation; - Identify poor and vulnerable APs; - Finalize compensation/resettlement strategies in consultation with the local governments, APs and their representatives; - Conduct public information/consultations on RP; - Sign contracts; and, - Finalize resettlement site plans. 2) Land Acquisition and Resettlement Activities - Provide compensation payment; 87

88 - Construct resettlement sites, houses, infrastructure, commercial buildings and other facilities; - Transfer APs to new location; and, - Demolish residential structures, non-residential and other structures. 3) Income Restoration - Provision of employment opportunities during the Project construction and operation phases; - Assistance in the identification of employment and business opportunities for APs in the local enterprises and businesses; - Targeted training program for APs; - Promotion and development of tertiary industry; and, - Special attention paid to the vulnerable groups. 4) Monitoring - Hire monitoring agency; - Conduct baseline survey and submit a report; - Establish internal monitoring system and grievance redress mechanism; - Monitor LAR and submit semi-annual reports, which includes monitoring of RP implementation, safeguard compliance, income restoration program, house relocation and - assistance to vulnerable groups; and, - Conduct external evaluation of the Project and submit a resettlement completion report The resettlement supervision milestones are presented in Table Based on the project schedule of civil works, the resettlement plan preparation have continued during 2010 and 2011, and the land acquisition and resettlement procedures commenced in October of 2011, physical displacement will be carried out from October 2011 to June 2013 and resettlement and rehabilitation activities will be completed by June The RP planning and implementation schedule with time bound activities is shown in Figure Table 10-1: Resettlement Supervision Milestones Responsible No. Resettlement Tasks Target Agency 1. Disclosure Updated Resettlement Information booklet Updated RP Approval RP posted on ADB website 2. Updated Approval of RP and Budget 505 AHs and 2,933 APs 3 villages and 2 enterprises $20.47 million (Recheck) 3. Agreements Compensation rates 3 villages & 2 enterprises IA (BCDICL) and RO BMG, District Government, and RO BMG, PMO, IA and ADB BMG, District Government, and RO BMG, District Government, BLRB, BHDAO, RO, VCs, PMO, Deadline Mar 2012 Mar 2012 Mar 2012 Dec 2011 Oct Jan 2013 Status Completed Completed Planned Completed In process 88

89 No. Resettlement Tasks Target Responsible Agency and IA Households 1,928 APs PMO, IA, BLRB, BHDAO, RO, and VCs Enterprises 1,005 staffs PMO, IA, BLRB, BHDAO, RO, and VCs 4. Detailed Plans Community 3 villages PMO, IA, DI, and rehabilitation plans RO Enterprises 2 enterprises PMO, IA, DI, and rehabilitation plan RO Plan for vulnerable 11AHs or PMO, IA, BMG, group(see Section 24APs Baise Civil Affairs ) Bureau/Baise Labor & Social Training Plans for APs 6. Establishment of Implementation Capacity and grievance redress mechanism 7. Monitoring & Evaluation All AFs Security Bureau PMO, IA, RO, training institutions PLG, PMO, IA, RO, BLRB, BHDAO, Others Deadline Oct 2011 Jan 2013 Jun 2012 Aug 2012 Mar 2012 Jun 2013 Mar 2011 May 2012 March 2011 Jun Jun 2013 Jul 2009 Mar 2012 Status In process Planned Planned Planned Completed Planned In process Baseline survey 300 AHs IMA March 2012 Planned Set-up internal As per RP PMO and IA Jan 2012 Planned supervision Hiring external As per RP PMO Jan 2012 Planned monitor Internal monitoring Quarterly PMO, IA, and RO Apr st Report reports External monitoring reports Semi-annual IMA Jun 2012 Dec Resettlement Completion Report Jun report PMO and IMA As work is completed in st Report 2 nd Report 3 rd Report Evaluation reports 2 annual reports IMA Dec 2013 Dec st Report 2 nd Report 8. Documentation of Consultation IA, RO, VC Ongoing 9. Documentation of Grievances IA, RO, VC Ongoing 10. Flow of Funds / Compensation To IA 70% BMG Oct 2011 Completed To affected VC IA and RO Oct 2011 Dec 2012 Completed To affected IA and RO Mar 2012 In process households Jan 2013 AFs = Affected Families; BCDICL = Baise City Development and Investment Co., Ltd.; BMG = Baise Municipal Government; BHDAO = Baise House Demolishment Administration Agency; BLRB= Baise Land Resource Bureau; DI = Design Institutes; IA = Implementation Agency; IMA= Independent Monitoring Agency; PLG= Project Leading Group; PMO = Project Management Office; and RO = Resettlement Office. 89

90 Figure 10-1: RP Planning and Implementation Schedule 90