PRC: Hunan Roads Development III Project Huayuan-Fenghuang Local Road Component

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1 Resettlement Planning Document Resettlement Plan Document Stage: Final Project Number: May 2009 PRC: Hunan Roads Development III Project Huayuan-Fenghuang Local Road Component Prepared by Huayuan County Construction Company Limited (HCCL) and Fenghuang County Construction Company Limited (FCCL) The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB s Board of Directors, Management, or staff, and may be preliminary in nature.

2 Resettlement Plan for Building Huayuan-Fenghuang Highway of Hunan Road Development Project III of the People s Republic of China Huayuan County Construction Company Limited (HCCL) Fenghuang County Construction Company Limited (FCCL) May

3 Preface This Resettlement Plan was jointly worked out by Huayuan County Construction Company Limited (HCCL) for Fenghuang-Huayuan Road and Fenghuang County Construction Company Limited (FCCL) for Fenghuang-Huayuan Road (the two companies are called Xiatuo comapny for short) on the base of laws of the People s Republic of China, local laws and regulations and involuntary resettlement policy of Asian Development Bank. The Resettlement Plan describes such items as land requisition and resettlement for building Huayuan-Fenghuang Highway. Before working out this plan, we have carried out social and economic investigation on 91 sample households in accordance with the project design. The number of resettled households adopted in this plan is an actual and reliable number surveyed on the spot. After the confirmation of Asian Development Bank, this Resettlement Plan shall be approved by Xiangxi Autonomous Prefecture on behalf of Hunan Provincial People s Government, and be implemented by Huayuan County Construction Company Limited (HCCL) for Fenghuang-Huayuan Road and Fenghuang County Construction Company Limited (FCCL) for Fenghuang-Huayuan Road. 2

4 Brief Introduction and Approval to the Resettlement Plan Hunan provincial Department of Communications, through the Ministry of Communications and the Ministry of Finance, has applied for a loan (Loan No.: 2219-PRC) from Asian Development Bank for building Hunan Expressway III Project. As one part of the local road project in Hunan Expressway III Project, the construction of Huayuan-Fenghuang Highway must be implemented according to the social safeguard policies of Asian Development Bank. This Resettlement Plan was worked out by Xiatuo Company in accordance with the laws and regulations of the People s Republic of China and the social safeguard policies of Asian Development Bank. Having reflected the main demands of Asian Development Bank, this plan is a basis for land requisition, economic compensation and inhabitants resettlement and accords with the Chinese laws and local laws and regulations. We have laid stress on some items and given concrete arrangement to the implementation and supervision to ensure high-quality resettlement. Xiatuo Company has discussed the details of this Resettlement Plan with the local officials, and this Resettlement Plan has been confirmed by them. Huayuan County Construction Company Limited (HCCL) for Fenghuang-Huayuan Road and Fenghuang County Construction Company Limited (FCCL) for Fenghuang-Huayuan Road and Xiangxi Autonomous Prefecture Government shall be responsible for raising funds for the budgeted investment and implementing and managing the resettlement in accordance with the Resettlement Plan. Approved by: Cao Shikai, Vice-Governor of Xiangxi Autonomous Prefecture Date: May 15, 2009 Liu Hongwu, Manager of Huayuan County Construction Company Limited (HCCL) for Fenghuang-Huayuan Road Xu Zongguang, Manager of Fenghuang County Construction Company Limited (FCCL) for Fenghuang-Huayuan Road 3

5 Table of Contents CHAPTER 1 BACKGROUND AND BRIEF INTRODUCTION Brief Introduction Project Background...10 CHAPTER 2 SCOPE OF LAND REQUISITION AND RESETTLEMENT Measures for Reducing Land acquisition and Resettlement Requisitioned Land and Properties Number of Affected people Impact on Income Loss...15 CHAPTER 3 SOCIAL AND ECONOMIC CHARACTERISTICS General Situation Basic Conditions of the Towns and Townships along the Road Social and Economic Investigation Social and Economic Characteristics of the Affected people Vulnerable Group Gender Issues Implications of Socioeconomic Survey Findings to RP Strategy...30 CHAPTER 4 LEGAL FRAMEWORK AND RESETTLEMENT POLICIES Overview Policies, Laws and Regulations Project Resettlement Policies...33 CHAPTER 5 COMPENSATION COSTS AND BUDGET A Consultation during the project Preparation Period Public consultation B Overview Land requisition Compensation Standards and Costs Compensation of Housing and Appurtenances Other Compensation and Resettlement Costs General Budget...43 CHAPTER 6 PLAN ON RELOCATION AND RECONSTRUCTION Demands of Resettlement Resettlement Strategy Relocation and Resettlement of Residential Houses Relocation of Poles and Lines Recovery of Irrigation Water System and Local Roads...47 CHAPTER 7 INCOME RECOVERY PLAN Background Income Recovery Strategy Income Recovery by Compensation Livelihood Training

6 7.5 Employment in the Project Construction Gender Vulnerable Families...50 CHAPTER 8 RESETTLEMENT ORGANIZATIONS Resettlement Organizations Responsibilities Appeal and Complaint Personnel training and Organization Strengthening...55 CHAPTER 9 PARTICIPATION AND CONSULTATION Plan on Public participation and Consultation Publicity of Resettlement Plan Measures of Ensuring Participation Resettlement Information Manual...58 CHAPTER 10 IMPLEMENTATION PLAN, SUPERVISION, ASSESSMENT AND REPORTING Time of Implementing Land Requisition and Resettlement Monitoring and Evaluation...59 Appendixes: Appendix 1 Appendix 2 Basic Conditions of the Villages and Towns along Huayuan-Fenghuang Highway List of Members Participating in the Consultation 5

7 Executive Summary I. Project Area and Impact Huayuan-Fenghuang Highway is a local road in Hunan Road Development Project III. The project construction shall be implemented by utilizing the loan of Asian Development Bank. With a total length of km, the non-grade road shall be built into a grade-4 road. The land requisition and resettlement shall influence 30 villages of 11 towns and s along the road. The on-the-spot survey data shows that 25 households shall be affected due to house demlotion, with a total affected population of 100. No public installations such as enterprise, school and hospital shall be influenced. It is estimated that mu of cultivated land shall be requisitioned and a population of 1,642 shall be influenced, with a per-capita influenced area of 0.16 mu. The number of affected people due to land acquisition is 1,642 and the number of affected households is 394. II. The Resettlement Plan The Resettlement Plan (RP) has been prepared by Huayuan County Construction Company Limited (HCCL) and Fenghuang County Construction Company Limited (FCCL) (the two companies are called Xiatuo Company for short) with assistance from local resettlement experts. The project detailed design formed the core base for the RP, and the impact data used was the results of detailed measurement survey, which has a high reliability. Meanwhile the resettlement social-economic survey covering 91 households and 481 villagers provided robust base for the formulation of the RP. The draft RP has been reviewed by the affected s and by ADB, and these comments has been incorporated into the RP by Xiatuo Company. Once approved by ADB, the RP will be implemented by Xiatuo Company. Consultations were conducted with the affected people and their comments and suggestions were reviewed by Xiatuo Company to ensure that any concerns are addressed. III. Policy Framework and Compensation For people unavoidably affected by the Project, the resettlement objective is to ensure attainment of equal or better livelihoods and living standards in line with the PRC s Land Administration Law (1998) and the Asian Development Bank s (ADB s) Policy on Involuntary Resettlement (1995). The RP is based on the Implementation Measures for the Land Administration Law of PRC in Hunan Province (2000) and the Management Measures on Temporary Land Occupation, Hunan People s Government, order no. 140 (2001), Decree 28 for Land Administration Law (Promulgated in October 2004) and Hunan Provincial Document No. 24 (February 2005). Xiatuo Company will ensure that any people losing land, housing, other assets or other means of production will be assisted in restoring their incomes and living standards to at least the levels without the Project s intervention. Lost assets will either be replaced or their owners compensated at replacement cost. The RP also stipulates generic eligibility/entitlement provisions for Project Affected People (AP.) losing land, houses and income losses and provides rehabilitation subsidies. 6

8 Permanent Land losses and Temporary Land Losses will be directly paid to the AP at a rate stipulated as per the RP. House losses will be directly paid to the APs in cash at replacement cost free of demolition expenses and salvaged materials. Crops and tree losses will be directly paid to the APs in cash at rates stipulated in the RP. Resettlement subsidy will be directly paid to each resettled household for transport costs, work loss, transfer costs, medical expenses and temporary housing. IV. Relocation and Rehabilitation Assistance The relocation site selection has two options of (1) within the same village and (2) outside of the village. The proposed income rehabilitation measures are mainly the cash compensation, which will place a considerable responsibility for income restoration on APs themselves. The preference of income restoration by APs include, cash crop plantation, livestock breeding, investing in off-farm activities as establishing small business or migrant workers, and training program if required, to develop specific skills for APs. For the vulnerable groups, special social assistance fund will be provided by the project to secure their livelihood. V. Implementation Framework and Budget Hunan Provincial Communications Department (HPCD) will be responsible on behalf of the Hunan Provincial Government for the general administration of the project implementation and the monitoring of the work done by project implementation agency to complete the project. The implementing agencies (IA) for this Fenghuang-Huayuan Road subproject are the Huayuan County Construction Company Limited (HCCL) and the Fenghuang County Construction Company Limited (FCCL) (the two companies are called Xiatuo Company for short), which are respectively under the jurisdiction of Huayuan County People s Government and Fenghuang County People s Government. They are responsible for execution and implementation of the project and the coordination for land acquisition and relocation. The IA of each project will establish a resettlement office with 4 to 5 members, and similar offices will also be formed in both counties, which will be led by a county leader who is followed by 5 to 6 members from such departments as communications, land & resource, environment protection, forestry department, usually one person from each department; related county or town will appoint four members in charge of the resettlement. Under the leadership and guide of the Coordination Leading Group of Xiangxi Autonomous Prefecture, related organizations are established with clear responsibility. Currently EA has already established a Leading Group for Project Implementation. So far the Leading Group has started coordination and internal policy circulation work for the land acquisition and resettlement of the project. Resettlement and land acquisition costs for Huayuan-- Fenghuang section of Local Road Component are estimated at CNY million including land and buildings compensation, income restoration assistance; management costs; monitoring; and taxes. 7

9 VI Stakeholder Participation, Disclosure of RP and Grievances At various stages of the project planning, affected people have been informed and consulted about the likely impacts of the project. Various stakeholders consulted include (i) heads of households to be affected; (ii) Village Heads and villagers representatives; (iii) local government agencies and departments and (iv) women and other vulnerable groups. The consultation will continue through the project implementation period. The draft RP prepared by EA is in Chinese, which has been sent to local government agency and stakeholders for review and comments on the policy in general and adequacy of the mitigation measures in particular. Further, EA organized/planned public consultation meetings in each affected s. Key findings of the consultation indicate full support to the project. The final RP will be summarized and disclosed after the approval from ADB and local government. A working organization for resettlement consisting of officials from Land Administration Bureau and related department, will implement the RP, and claims will be reviewed and resolved within three weeks. VII. Project Monitoring and Evaluation The RP will have both internal and external monitoring. EA will take an overall responsibility for the project monitoring during the project implementation phase. The following activities will be monitored by EA: (i) Compensation payments; (ii) House rebuilding/ relocation of APs; and (iii) Grievance Redress. Internal monitoring will be the overall responsibility of the resettlement implementation agency.xiatuo Company will carry out internal monitoring of land acquisition and resettlement so as to guarantee timely and well-done land acquisition and resettlement works following the RP and to protect the interest of the affected people. Hunan University, an independent agency from the EA and the local governments along the alignment, was contracted as the lead agency to carry out the external monitoring and evaluation work under this RP. The tasks include: (i) review and verification of the compensation payments; (ii) status of land acquisition and payments on land compensation; (iii) assessment of the disbursement of compensation procedure; (iv) appraisal of the grievance procedure; (v) APs reaction/ satisfaction with the entitlements and compensation; (vi) assessment of the resettlement efficiency, effectiveness, impact and sustainability, drawing lessons for future policy implementation, formulation and planning. The external monitoring will be carried out every six month during the resettlement implementation and annually after the completion and until the affected people s livelihoods have been adequately restored. The monitoring findings will be shared in the form of reports to EA in Chinese and ADB in English. 8

10 Figure 1 Geographical Location of Huayuan-Fenghuang Highway 9

11 1.1 Brief Introduction CHAPTER 1 BACKGROUND AND BRIEF INTRODUCTION 1 The Resettlement Plan describes such items as land requisition and resettlement for building Huayuan-Fenghuang Highway, which is one part of the local road project of Hunan Road Development Project III. The Resettlement Plan is worked out in accordance with the Involuntary Resettlement Policy 1, Indigenous Peoples Policy and other social security and development policies of Asian Development Bank, relevant laws of the People s Republic of China and laws and regulations on land requisition and resettlement of the local governments. 2 From the view of the Chinese government and Asian Development Bank, the Resettlement Plan has the main purpose of ensuring that the people who shall inevitably lose land or property for the influence of the project development shall get compensation, which shall be equal to or exceed what they have lost. All the policies, opinions and compensation measures described in this Resettlement Plan are designed for this purpose. The project execution agencies, Huayuan County Construction Company Limited (HCCL) for Fenghuang-Huayuan Road, was established on September 27, 2007 and Fenghuang County Construction Company Limited (FCCL) for Fenghuang-Huayuan Road, was establishec on August 23, 2006, (the two companies are called Xiatuo Company for short), which are separately under the jurisdiction of Huayuan County Government and Fenghuang County Government, responsible for the construction and management of Huayuan- Fenghuang Highway. As an implementing unit of the project, Xiatuo Company is directly responsible for working out the Resettlement Plan and implementing and supervising the funds appropriation. 3 The Resettlement Plan is worked out on the following bases: (i) detailed on-the-spot survey data; (ii) on-the-spot investigation implemented along the project; (iii) discussion between the local governments, village cadres and affected people; (iv) on-the-spot social and economic investigation on the affected households. 4 The relocation influence data in the Resettlement Plan comes from the on-the-spot survey within the red line completed in September 2008, and has a high reliability. The resettlement principle and qualifications have been stipulated in the Resettlement Plan. 5 The Resettlement Plan s scope is in the scope of Hunan Road Development Project III: one of the two local road components, Huayuan-Fenghuang Highway. 1.2 Project Background Project Background 6 Huayuan-Fenghuang Highway is a local road in Hunan Road Development Project III. The project construction shall be implemented by utilizing the loan of Asian Development Bank. With a total length of km, the non-grade road shall be built into a grade-4 road (see Drawing 1: Geographical Location of the Project). 1 Asian Development Bank: Involuntary Resettlement, ; Handbook on Involuntary Resettlement,

12 7 The project construction shall begin in October 2009 and be completed in October The project related Huayuan County and Fenghuang County lie in the west part of Hunan Province. The two counties were appointed as national key poverty allevation counties in The project implementation shall improve the communication condition of the project area, promote the local agricultural production, quicken the poverty allevation course of the locality, and improve the welfares of the minority nationalities Project Description Route Description 9 Huayuan-Fenghuang Highway begins with Xiazihua, Malichang Town, Huayuan County, across Yaqiao village, Paiwu village, Jiwei town, Buchou village,yaqiu town, then enters Fenghuang county, through Lianglin village, Na ershan town, Shanjiang village, Qiangongping village, Tuojiang town,with a total length of km. 10 Huayuan-Fenghuang Highway has a total length of km and goes through 6 towns and s of Huayuan County and 5 s of Fenghuang County. The terrains along the road are mountains and hilly areas Main Ttechnical Standards and Costs 11 Table 1 shows the main technical standards. Huayuan-Fenghuang Highway begins with Post K0+000 and ends at Post K , with a total length of km. The whole road adopts grade-4 road standard, the vehicle load grade adopts road-ii grade, the design speed is 20km/h. The width of the road bed is 6.5m, the width of the road surface is 6.0m. Cement concrete is adopted for the pavement. It is planned that the project construction shall begin in October 2009 and be completed in October Table 1 Main Technical Standards of Huayuan-Fenghuang Highway No. Item Unit Quantity Remark 01 Road grade Grade-IV road 02 Total length Km Design speed Km/h Land requisition mu Permanently requisitioned land 05 Building demolition m Roadbed width m Lane width m Bridge 137/9 09 Culvert 405 culverts 11

13 Data source: working drawings. The data of land requisition and resettlement comes from the on-the-spot survey. 12 The project construction needs a total cost of RMB 157 million yuan, which shall be jointly raised by Asian Development Bank and Xiangxi Autonomous Prefecture. Asian Development Bank provides a loan of USD 4 million. The project construction shall begin in October Social and Economic Benefits 13 Huayuan-Fenghuang Highway links up West Hunan s two proverty-stricken counties: Huayuan and Fenghuang. The improvement of this road can perfect the local road network construction. The project shall produce social and economic benefits as follows: 1) increase the transport efficiency of the project areas and shorten the transport time; 2) eliminate the factor that poor road condition limits the economic growth; 3) improve the environmental state of the existing road and reduce the traffic accident risk; 4) provide the villagers along the road with more short-term employment opportunities relating to the project construction. In addition, the improvement of the local road network can bring the local habitants the following benefits: 1) reduce the transport and agricultural input cost; 2) increase the production opportunities of the economic crops; 3) bring more non-agricultural employment opportunities; 4) benefit the local markets, schools and medical facilities. 14 The above-mentioned items shall be in favor of improve the living conditions of the poverty-stricken people in the project areas and bring favorable influence to the local women and minority nationalities. 12

14 CHAPTER 2 SCOPE OF LAND REQUISITION AND RESETTLEMENT 2.1 Measures for Reducing Land acquisition and Resettlement 15 Since the project shall increase the roadbed width from 4.5m to 6.5m, land requisition and resettlement are necessary. 16 For the road widening, we ordinarily increase the width on one side of the original road and change some winding sections into straight ones. When choosing the line in the initial design, we change the original sections which go through the towns into the sections going around the towns, so that that the resettlement quantity is reduced, especially the public service installations such as schools and hospitals are not removed, for the purpose of reducing the project cost. 2.2 Requisitioned Land and Properties 17 In accordance with the Guide to Compiling Road Project Design Documents promulgated by the Ministry of Communications of the People s Republic of China, we have evaluated the following land and buildings: Land: paddy field, dryland, fruitery, woodland, wasteland and residential land. We have differentiated permanently requisitioned land and temporarily used land (only used in the construction period). Trees and young crops: fruit tree, economic tree and timber tree Houses: brick-concrete type, brick-tile type, clay-tile type and wood-tile type Auxiliary buildings and installations: threshing floor, enclosing wall, pool, well, fishery pond, methane pit and tomb Infrastructural facilities: communication wire, power wire Non-residential installations: school, office building and enterprise. 18 Table 2 classifies and sums up the land and properties to be requisitioned for the project construction. The cultivated land amounts for 55.24% of the requisitioned land, and the paddy field accounts for 27.52% of the cultivated land, the other requisitioned land contains woodland, shrubbery land and wasteland. 55 household shall be affected due to house demolition. The project construction needs a temporary-use land area of 60.7 mu. Table 2 Requisitioned Land and Properties (Summary) Item Huayuan Fenghuang Total County County Number of related villages / Paddy field Dryland Total area of requisitioned cultivated land (mu) Percentage of paddy field in total area of requisitioned cultivated land (%) Residential land (mu) Fruit /economic forest (mu) Timber forest/shrubbery forest (mu) Others*

15 Total area of requistioned land Percentage of productive land in total area of requisitioned land (%) Temporary use land (mu) Number of resettled households Resettled area (m 2 ) Infrastructural facilities (m) single-line length Communication wire Power wire Note: it means wasteland Data source: on-the-spot survey 19 The land requisition and resettlement shall influence 30 villages of 11 towns and s along the road (see Appendix 1), among which 8 villages are influenced by land requisition and resettlement and 22 villages are influenced by land requisition only. None of the 30 villages has its requisitioned cultivated land exceed 5% of its total cultivated land. The village which has the biggest influence in land requisition is Pengyan Village, Yaqiao Township, Huayuan County. This village has 35.5 mu cultivated land to be requisitioned, accounting for 3.3% of its total cultivated land. 20 Influenced infrastructural facilities: power wire, communication wire and optical cable, in addition, the irrigation system through the existing road needs recovery. Except the power wire and communication wire, the contractor is demanded to ensure normal operation of the other infrastructural facilities in the civil work period in accordance with the stipulations of the contract. 2.3 Number of Affected people 21 The on-the-spot survey data shows that 25 households shall be affected due to house demlotion, with a total affected population of No public installations such as enterprise, school and hospital shall be influenced. 23 It is estimated that mu of cultivated land shall be requisitioned and a population of 1,642 shall be influenced, with a per-capita influenced area of 0.16 mu. 24 The number of affected people due to land acquisition is 1,642 and the number of affected households is 394. Table 3 Statistics of Affected people Land wholly requisitioned Land partially requisitioned House wholly removed House partially removed Influenced public installations Town or Malichan g Yaqiao village Paiwu village Jiwei Buchou village Yaqiu No. of households 0 No. of people No. of households No. of people No. of households No. of people No. of households No. of people No. of households N.o of people None None None None None None None None None None None None 14

16 Lianglin village None None Na ersha n None None Shanjian g None None Qiangong ping None None village Tuojiang None None Total None None Data source: on-the-spot survey 2.4 Impact on Income Loss 25 In order to know well the influence of the project and lay a solid foundation for working out the Resettlement Plan, we have collected relevant data of the related villages (see Appendix 1). Besides the assessment of the influence of land requisition and resettlement, we have evaluated the income influence according to the social and economic investigation, the result (see Chapter 3) reflects that little income shall be reduced for land requisition. The investigation shows shows that only one third of the income of the resettled households comes from their agricultural crops, and 64.1% comes from non-agriculture income. The per-capita land area requisitioned is 0.16 mu, accounting for 1.4% of the percapita land area of the villages along the road. Only 0.5% of the income shall be reduced. Therefore, the land requisition has little influence to the livelihood of the related villagers. 15

17 CHAPTER 3 SOCIAL AND ECONOMIC CHARACTERISTICS 3.1 General Situation 26 Huayuan-Fenghuang Highway lies in Huayuan County and Fenghuang County, which are under the jurisdiction of Xiangxi Autonomous Prefecture in thw west of Hunan Province. The two counties have jurisdiction over 42 towns/s and cover a total land area of km 2 including a cultivated land area of 37,060 hectares. 27 In 2006, the two counties had a number of households of 155,600 with a population of 632,600, including an agricultural population of 544,600 and a non-agricultural population of 88,000. The per-household population was The female population was 305,400, a ccounting for %; the male population was 327,200, accounting for 51.72%. The urban population was 88,000, accounting for 13.9 % of the total population, equal to one half of the average level of Hunan Province. 28 Table 4 shows the GDP and per-capita annual income of the two counties in Table 4 GDP and Per-capita GDP of the Two Counties in 2006 County or province Huayuan County (10,000 yuan) Fenghuang County (10,000 yuan) Hunan Province (100 mil. yuan) Total output Primary value industry Secondary industry Tertiary industry GDP index (100 in 2005) Per-capita GDP (yuan) Per-capita cultivated land (mu) Rural percapita net income (yuan) Urban percapita net income (yuan) In 2006, the rural per-capita net incomes of Huayuan County and Fenghuang County were 1,956 yuan and 1,984 yuan respectively, equal to one half of that of Hunan; the percapita cultivated land area were 0.76 mu and 0.86 mu respectively, lower than the average level of the whole province. 30 Both Huayuan and Fenghuang are national key poverty-stricken counties. The rural poverty incidence rate is above 30%, equal to 15 times of that of the whole province. Most of the population are minority people, accounting for 97.79% of the total population. The relocation places where the production condition is good, the transport is convenient and the area is open will be chosen replacing those places where the production condition is poor, the natural condition is bad, the living area is dispersed, the management is not easy and there is a relatively big loss of land. The supporting-poor relocation measure will be adopted by one help one which means one government cadre supporting specially one particular poor household Basic Conditions of the Towns and Townships along the Road 31 Huayuan-Fenghuang Highway goes through Malichang, Yaqiao village, Paiwu village, Jiwei, Buchou village, Yaqiu of Huayuan county and Liangling village, Na ershan, Shanjiang, Qiangongping village, Tuojiang of Fenghuang county. Table 5 shows the basic conditions of the towns and s along the road. 16

18 Table 5 Basic Conditions of the Towns and Townships along the Road (2006) Huayuan county Fenghuang county Total population Agricultural population Minority population Per-capita cultivated land area (mu) Per-capita GDP (yuan) Per-capita income (yuan) Malichang Yaqiao village Paiwu village Jiwei Buchou village - Yaqiu - Lianglin village Na ershan Shanjiang - Qiangongping village Tuojiang Note: the adjustment of administrative division has changed the names of towns and s. 3.3 Social and Economic Investigation 32 The social and economic information of the affected people mainly comes from the social and economic investigation implemented in May This investigation was completed by the Rural Economy Investigating Team of Xiangxi Autonomous Prefecture under the direction of the domestic resettlement experts, for the purposes as follows: (1) find out the social and economic information of the affected people; (2) know the understanding degree of the resettled people on the project; (3) determine the resettled people s attitude and choice on such matters as land adjustment, house relocation and income recovery. 33 The investigation has collected the basic information of all villages along the road. The investigation adopted two means: village investigation and household investigation. The domestic resettlement experts designed questionnaires for the village investigation and household investigation in accordance with the along-the-road interview. 6 investigators participated in the investigation. The investigation was implemented with the assistance of the town and county-level governments and under the direction and supervision of the domestic resettlement experts. 17

19 34 The social and economic investigation coverd 30 villages along the road, including 91 households with 481 persons. The investigated households accounted for 23.1% of the total affected households. All the households chosen for the investigation were the households influenced by the project. 3.4 Social and Economic Characteristics of the Affected people Brief Account 35 We applied family life structureframe to analyze the data collected in the social and economic investigation, this analysis method gave consideration on the four aspects of the social and economic characteristics of households: (Remarks: family life structure means the number of persons, education of the persons and the incomes of the persons within one family) Human resource: population characteristic and education/skill characteristic Natural resource: land, forest and water source Material resource: production and life assets Financial resource: household income and expense (including financial credit) 36 The following sections give explanation to the above aspects, and another section explains the interviewed people s attitude to the rebuilding of Huayuan-Fenghuang Highway Human Resource 37 The investigation shows that the interviewed households have an average population of 5.3 (see Table 6). The households with a population of 3-5 account for a fairly high percentage (53%). Among the 416 interviewed people, male people account for 53.8%, female people account for 45.2%. Table 6 Population Characteristics of the Investigated People Household scale Number of people Number of households % 48.3% 36.3% 11% Age <5y 6-11y 12-14y 15-17y 18-29y 30-39y y 50-59y 60-69y >70y Number of people 5.4% 10.2% 5.4% 6.8% 23.5% 22% 13.3% 5% 4.2% 4.2% Vocation Peasant Worker Other vocation* Male Female Educational level (excluding at-school students and children under 7 years) 18

20 Illiterate Primary school Junior middle school Senior middle school College above Male Female * The other vocation means teacher, public servant, transportman, businessman etc. and 38 The population under 17 years account for 27.8% of the total population, the population above 60 years account for 8.4%, the population at the age of 20~40 years account for 45.5%. 39 The employed people above 18 years account for 76% of the total number of the employed people. The students account for 16%, the others are retired people and invalid people. The employed people have a dependence rate of 1.6 persons, the household scale is unrelated with the dependence rate. In a big household, several generations usually live under the same roof. The investigation shows that the nunmber of male employees is 183 and the number of female employees is 168, this means that men and women enjoy equivalent employment rate on the whole. 40 All the households are rural ones. 62.4% of the interviewed people entirely depend on agricultural production. 35.9% of the interviewed people are engaged in non-agricultural work (more than one half of them hire out for work). The number of men hiring out for work is a little bigger than that of women. The other people are mainly engaged in small commerce, transport and artisan (wood and bamboo processing). In general, each of the investigated household has at least 1 person enaged in non-agricultural work, over one half of the investigated households separately have 1 person hiring out for work. The non-agricultural employment rates of different nationalities are equivalent on the whole. 41 The people who hire out for work contain employees getting temporary jobs and employees getting entire-year jobs in other regions, whom separately account for 20% and 18% of the total number of the employed people. 42 Above 89% of the interviewed people at the age of 6 and above have educational level of primary school, 36% of them have educational level of junior middle school, 20% of them have educational level of senior middle school or junior college, over one half of the investigated households separately have at least 1 person with educational level of senior middle school or vocational training. The illiterate proportion of women is higher than that of men (most of the illiterate people are old people). The senior education proportion of men is higher than that of women, this means that the phenomenon of valuing men and belittling women exists in the investigated areas. Most of the children under 15 years are at school. One half of the young people at the age of 15~19 are at school, and one half of them are at labor. 19

21 3.4.3 Natural Resource Land Tenure 43 In the middle 1980s, the rural collective economy system adopted in the 1950s was replaced by household contract responsibility system; the land was distributed to the households according to the number of family members. In a village, the land was classified in accordance with the land quality grades. Each household gets land of different grades. All the housholds have signed land contracts (at the beginning, the contract period was 15 years; after 1998, the contract period became 30 years). The households have land use right, but the land ownership belongs to the local villagers group. 44 The initial land distribution was fair, but with the lapse of time, the conditions of the household have changed, for example, death, birth, marriage and so on. The pre-stored land can meet the growth of population. However, consistant growth of population (although the growth speed is slow) causes the following problems: (1) the per-capita land area is reduced; (2) the conflict between household scale and cultivated land area is becoming sharp Land Possession Data 45 Our investigation shows that the 91 investigated households have a total land area of mu, with a per-household paddy field area of 2.05 mu, a per-capita paddy field area of 0.39 mu and a per-capita dryland area of 0.21 mu. It is clear that the per-capita cultivated land area is small. In addition, the per-capita area of other-category land is also small, except for hilly area. Table 7 shows the land possession areas of all investigated s and households. Table 7 Land Possession Data of Sample Households (mu) Huayuayn county Malichang Total contracted land Paddy land Dryland Fruitery Vegetable field Woodland Jiwei Buchou village Total Perhousehold Per-capita Yaqiao village Total Perhousehold Per-capita Paiwu village Total Perhousehold Per-capita Total Perhousehold Per-capita Total Perhousehold Per-capita Yaqiu village Total

22 Fenghuang county Lianglin village Na ershan Shanjiang Qiangongping village Tuojiang Perhousehold Per-capita Total Perhousehold Per-capita Total Perhousehold Per-capita Total Perhousehold Per-capita Total Perhousehold Per-capita Total Perhousehold Per-capita Houses and Subsidiary Facilities 46 Table 8 reflects that most of the residential houses of the influenced villages are of wood structure, belonging to traditional architectural type, accounting for 60% of the total investigated houses. The brick-concrete structure houses account for 24.2%, the brick-wood structure houses account for 9%. The infrastructural facilities are fairly good. Each household enjoys power supply. 40% of the households enjoy tap water supply. 37% of the households are linked with telephone. Above 80% of the households have their own drying yards. Table 8 Residential House Types of Sample Households House structure Number of households Percentage Wood structure 9 9.9% Brick-concrete structure % Brick-wood structure % Total % Financial Resources Incomes of Households 47 Table 9 shows the incomes of the households along the road. 26.7% of the investigated households get a per-capita annual net income of above 1,500 yuan, 5% of the investigated houses get a per-capita annual net income of below 900 yuan. 21

23 Table 9 Per-capita Annual Incomes County Huayuan county Fenghua ng county Town or Malichang Yaqiao village Village > <900 Xinke 32% 25% 25% 11% 7% Jinniu 33% 26% 25% 11% 5% Pengyan 25% 31% 30% 10% 4% Tiantang 30% 24% 25% 15% 6% Youma 28% 26% 21% 18% 7% Dongma 28% 25% 18% 19% 10% Paiwu village Dapai 35% 15% 25% 15% 10% Jiwei Jisi 30% 20% 25% 20% 5% Jiwei 32% 20% 27% 13% 8% Jijiu 30% 28% 15% 18% 9% Buchou Hangsang 20% 25% 32% 18% 5% village Buchou 25% 23% 18% 20% 14% Yaqiu Paidakou 20% 32% 30% 10% 8% Lianglin village Na ershan Shanjiang Qiangong ping village Youma 23% 28% 22% 15% 12% Hangzhuang 29% 25% 31% 8% 7% Gouguai 29% 32% 20% 11% 8% Lianglin 30% 20% 25% 20% 5% Wudou 20% 20% 20% 30% 10% Pagou 15% 30% 35% 15% 5% Dihe 10% 20% 25% 25% 20% Duoxi 10% 20% 40% 20% 10% Luotuoshan 5% 10% 55% 10% 20% Dama 20% 30% 30% 10% 10% Qiantan 5% 15% 50% 10% 20% Huangmaopi ng 4% 30% 20% 10% 36% Xinguang 10% 10% 30% 10% 40% Yanbanjin 30% 20% 25% 20% 5% Haichong 52% 20% 12% 8% 8% Tuojiang Changping 70% 10% 10% 5% 5% Jinpin 70% 10% 10% 5% 5% Data source: statistic data of relevant towns and s and on-the-spot investigation in The investigation data shows that above 78% of the investigated households get a per-capita annual income of above 1,500 yuan, 5% of the investigated houses get a percapita annual income of below 900 yuan. 22

24 Figure 1 Incomes of Households 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% < >4500 Data source: household investigation in Income Source 49 The villages along the road have a wide income source. Table 10 shows the sequence of income sources. The income from going out for work is the main economic source of most villages (except two villages). The project areas have many economic crops, including fruit, vegetable, orange, chestnut and rape. Since the local grain income is very important, all the households plant grain crops. The grain is mainly for the consumption of the villagers (partial grain is used for raising pigs). Table 10 Ranking of Income Sources of Investigated Villages County Huayuan county Town or Malichang Yaqiao village Paiwu village Village Grain Economi c crop Fruits Breeding industry Going out for work Nonagricultu ral activity Xinke Jinniu Pengyan Tiantang Youma Dongma Dapai Jiwei Jisi Jiwei Buchou Jijiu

25 Fenghua ng county village Yaqiu Lianglin village Na ershan Shanjiang Qiangong ping village Tuojiang Hangsang Buchou Paidakou Youma Hangzhuang Gouguai Lianglin Wudou Pagou Dihe Duoxi Luotuoshan Dama Qiantan Huangmaopi ng Xinguang Yanbanjin Haichong Changping Jinpin Note: 1 means the highest income source. Data source: on-the-spot investigation in Table 11 shows the income composition of the investigated households and shows the variety of the economic activities along the road. In the sample group, the wages income accounts for 39.2%, non-agricultural income exceeds one half of the total income of a household. It is very important for the affected households to recover their economy, for their income from grain and economic crops accounts for only one third of their total income, and only 1.6% of their cultivated land is requisitioned. This means little influence to their income. Table 11 Income Composition and Per-capita Net Income of Sample Households Net income of households in 2006 (yuan) Average value of samples % Income from wages % Income from agriculture and forestry % Income from sideline production % Income from enterprise management % Income from transfer or property % Total Production cost* Per-capita net income (yuan/person) /1 including fertilizer, agricultural chemical, seed and other cost for breeding and non-agricultural activities 24

26 Data source: on-the-spot investigation in Matters Relating to the Road Construction Understanding on Huayuan-Fenghuang Highway 51 The social and economic investigation reflects that all the households along the road have known that Huayuan-Fenghuang Highway shall be built, for this information is widely spread among the local people. 52 Above 95% of the interviewed people consider it very necessary to build Huayuan- Fenghuang Highway. They think that building Huayuan-Fenghuang Highway shall quicken the flow of people, goods and information and produce great economic and social benefits. Among the 91 investigated households, 78 households shall have land requisitioned, 13 households shall have land requisitioned and houses removed. 17 households (20%) consider that the project shall influence their life and production, 37 households (50%) consider that the project shall exert a little negative influence to their life and production, 25 households (30%) consider that they shall benefit from the project Attitude to Huayuan-Fenghuang Highway 53 The investigated households consider that Huayuan-Fenghuang Highway shall bring such advantages as convenience in going out and concenience in selling their agricultural products. They pay attention to such issues as land requisition and resettlement. The local village cadres frankly pointed out the negative influence of the project, but they think that the positive influence is much bigger than the negative influence Affected people's Preferences 54 We have carried out an investigation among the affected households on the measures for alleviating the influence of land requisition and resettlement. Table 14 sums up the answers of the interviewed households. Their main opinions are as follows: (1) 92.3% of the sample households hold the tendency that the land compensation money should be directly paid to the households who are cultivating the land and possess land use right; 2.2% of the sample households hold the tendency that the land compensation money should be shared by the local villages and the affected households and that 2.2% of the land compensation money should be used for developing the collective economy. (2) In addition, if the land compensation money is directly paid to the affected households, 46.1% of them will invest this money in the education of their children; 24,2% of them will invest this money in the improvement of their residential conditions; 2.2% of them will invest this money in their small business; 12.15% of them will deposit this money for their old-age pension; only 15.45% of them will use this money in technical training. (3) If their residential houses are removed, 52% of the affected households hope 25

27 to build new houses near the old houses; 48% of them hope to build new houses in the local villages; only 1% of them are willing to move out of their villages. Table 14 Preferences for Mitigation Measures Alleviation measures after land requisition a. Directly pay compensation money to households a. Education of children b. Have a land adjustment within the village c. Invest all compensation money for developing collective economy The compensation money is shared by village and households % 3.3% 2.2% 2.2% Use of compensation money* b. Improving residential conditions c. Investing in small business d. Deposit for oldage pension % 24.2% 2.2% Relocation places of the resettled households e. Technical training f. Others a. Near the old houses b. In the local village c. Proper places outside the village Land Adjustment 55 The compensation policy of exchanging land with land lies on whether there is surplus land for cultivation and whether the land adjustment is feasible. The on-the-spot investigation and discussion clearly indicates that all the cultivated land has been contracted in the contract responsibility system. This means that there is no surplus land for the adjustment. Fortunately, the land losses at the household level will be small (5% to 10%) in most cases. If a household wants replacement land, they can negotiate with other villages; but generally, this is not the preference of the local people because the good farmland is limited and other land is mountainous. 3.5 Vulnerable Group Poverty-stricken Population Poverty State of the Project Area 56 Both Huayuan and Fenghuang are national poverty alleviation counties. Above 97.79% of the population are minority people. PPTA of Hunan Road Project III finds that the poverty-stricken populations of the two counties respectively account for 32% and 31%. In the investigated sample households, there are 4 poverty-stricken households, which belong to Miao nationality. 26

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