PRC: Hunan Roads Development II Project External Monitoring Report on Land Acquisition and Resettlement For Yuanling Local Road(II)

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1 Social Monitoring Report Project Number: September 2009 PRC: Hunan Roads Development II Project External Monitoring Report on Land Acquisition and Resettlement For Yuanling Local Road(II) Prepared by: Social Investigation Centre of Politics and Public Administration College in Hunan University, People s Republic of China For Hunan Provincial Transportation Department This report has been submitted to ADB by Hunan Provincial Transportation Department and is made publicly available in accordance with ADB s public communications policy (2005). It does not necessarily reflect the views of ADB.

2 Loan Project of Asian Development Bank External monitoring report on Resettlement of Yuanling Section of Zhangjiajie Yuanling Highway (II) Social Investigation Centre of Politics and Public Administration College in Hunan University September, 2009

3 Contents Chapter 1: Foreword 4 Chapter 2: Summary 4 Chapter 3: Project Impacts 7 Chapter 4: Resettlement Process 8 Chapter 5: Resettlement Policy 9 Chapter 6: Income and livelihood Restoration 10.Chapter 7: Structure Relocation and Reconstruction 14 Chapter 8: Infrastructure Rehabilitation 15 Chapter 9: Resettlement Budget and Payment 16 Chapter 10: Participation and Information Disclosure 16 Chapter 11: Organization and Management 17 Chapter 12: Good practices, Remaining Problems and Recommendations 17 Chapter 13: Annexes 18

4 External Monitoring Report on Resettlement of Yuanling Section of Zhangjiajie-Yuanling Highway(II) A. Chapter 1: Foreword The proposed upgrading of Zhangjiajie Yuanling highway is one of the local roads components integrated into the Hunan Roads Development II Project financed by ADB, and the road will be 134km long. The upgrading of Zhangjiajie Yuanling Highway will improve the existing Non class Highway to Class III. The upgrading of the highway will be divided into two sections: Yuanling section and Zhangjiajie section. As Implementation of Zhangjiajie Section was delayed about two years, the report only includes resettlement condition about Yuanling section. The proposed local road improvement is located in Yuanling County, HuaiHua City in HuNan Province. The total length of the alignment is km which cross 3 townships and 22 villages in Yuanling County. Huaihua Zhangyuan Highway Construction Ltd. (HZHCL) is responsible for implementing Yuanling section, and in November 2006, Yuanling Section was commenced. As of 30 August 2009, HZHCL briefed that Yuanling Section had achieved about 90% progress. Yuanling Section is expected to be officially opened to traffic in December Yuanling County, the project area, located at the west part of Hunan Province, is one of the poverty Counties designated by the provincial government in Yuanling County, which in the vicinity of Xiangxi Autonomous Prefecture, both they have two primary advantages: mineral depositions and tourism resources. The weak transportation links with the outside world severely constrain these advantages. The construction of project will serve as an interconnecting road between Changde Zhangjiajie Expressway completed in 2005 and the Changde Jishou Expressway completed in It will play a vital role of constructing the Golden Triangular Tourist Zone among Zhangjiajie, Fenghuang and Yuanling, and will provide a substantial boost to the economic development of the project area. The construction of the proposed project will help to improve the accessibility of people in the project area, hence increase the agricultural production and assist with poverty alleviation, improve welfare of minority nationalities in the project area. Researchers in external monitoring agency, Politics and Public Administration College of Hunan University, conduct external monitoring task along the Zhangjiajie Yuanling road in September Researchers collect related information by literature collection, visit affected people, discussion with HZHCL, Headquarter of Zhang Yuan Highway Improvement, and other relevant government departments. The present report is based on the work above. The income restoration of project affected people was paid more attention. In this monitoring report data collection process, HZHCL, Headquarter of Zhang Yuan Highway Improvement, project affected people along the road give the strong supports to the work of monitoring group. So, we would like to express our gratitude to them. B. Chapter 2: Summary 1. The upgrading of Zhangjiajie Yuanling highway is one of the local roads components integrated into the Hunan Roads Development II Project financed by ADB, and the road is 134km long. The upgrading of

5 Zhangjiajie Yuanling Highway will improve the existing Non class Highway to Class III. The upgrading of the highway was divided into two sections: Yuanling section and Zhangjiajie section. As for the Zhangjiajie section has postponed, so the report only includes resettlement condition about Yuanling section. 2. The local road improvement is located in Yuanling County, HuaiHua City in HuNan Province. The total length of the alignment is km which cross 3 townships and 22 villages in Yuanling County. HZHCL is responsible for implementing YuanLing section, and in November 2006, Yuanling Section was commenced. As of 30 August 2009, HZHCL briefed that Yuanling Section had achieved about 90% progress. Yuanling Section is expected to be officially opened to traffic in December Researchers in external monitoring agency, Hunan University, conduct external monitoring task along the Zhangjiajie Yuanling road in September Researchers collect related information by several means. The income restoration of project affected people was paid more attention. 4. The actual total permanent land acquisition of Zhangjiajie Yuanling highway is mu which accounts for 112.3% of resettlement plan. Among it, cultivated land mu accounts for 143% of resettlement plan. About 2181 households, people are affected. Temporary land acquisition is 210.4mu. Compared to resettlement plan, land acquisition, especially cultivated land area is more than original plan. The main reason is that landslide in severe cases, thus, more lands out of red line were acquired. 5. The total floor space of houses demolition is m2, the total number of affected households is 427(1763people), (affected by loss of housing 100%, not including affected by loss of housing Partially). Compared to resettlement plan, the actual area of houses demolition and affected households of Zhangjiajie Yuanling highway are accord to original plan. 6. The Project Executing Agency (EA) is Huaihua Zhangyuan Highway Construction Ltd. (HZHCL), directly under the Hunan Highway Administration Bureau (HHB) of Hunan Provincial Communications Department (HCD). On 27 September 2004, HZHCL was established to construct and operate the Zhangjiajie Yuanling highway. In early March 2006, Yuanling government set up Headquarter of Zhang Yuan Highway Improvement, which is responsible for RP implementation and supervision in yuanling section. 7. In March 2006, Yunling government issued an announcement of construction of Zhangjiajie Yuanling highway. House demolition started in early may, Until the end of 2006, besides 57 houses near Yuanling town and 9 houses at Jiemuxi Township, all houses and subsidiary buildings in the red line have been relocated. These houses in Yuanling town were demolished from March 2009 and have been demolished thoroughly till now. The permanent land acquisition project ended at the end of 2006, a total of mu land were acquired. The compensation has paid to all affected households. 8. The Yuanling Section commenced construction of civil works in November As of 30 August 2009, HZHCL briefed that Yuanling Section had achieved about 90% progress. Yuanling Section is expected to be officially opened to traffic in December Compared to resettlement plan, the actual compensation rate for permanent land acquisition and house is lower.

6 10. The resettlement agency and other government departments along Zhang Yuan highway took active measures to ensure a stable restoration of the affected households income. These measures include developing agricultural industrialization and non agricultural industries, organizing the transfer of surplus labor force and help vulnerable groups and etc. 11. The income of most affected people in 2008 was essentially flat in 2007 in a whole, and it was better than before their land was acquisitioned. In general, the income and earning capacity of the affected people have can guarantee the recovery and improvement of their livelihood. However, for those severely affected families, especially for vulnerable groups, the resettlement agency should strengthen their later support to them 12. The houses of affected households have been demolished, and compensation for house demolition had already paid in full to the affected households. The majority of affected households had already built their new houses and move into new homes. Water supply, electricity supply and pathways of new homes have been handled well. While some affected households have not yet begun to build new houses because they still can not find suitable new residential land. The housing condition of most households is obvious improved. 13. Along the line of Zhang Yuan highway, mountains there are high and steep. The greatest difficulty of households required relocation is hard to find a suitable relocation sites. The county resettlement agency developed 16,000 m2 housing land in three town along the line in order to allow households required relocation can rebuilt their new house as soon as possible. 14. Public infrastructure such as electricity, telecommunication which subjects to the impact of this project, was recovered in time, and did not result in a greater negative impact. 15. To September 30th, 2009, EA have paid 31.2 million CNY compensation fees to those people who were affected people, including million CNY land acquisition compensation, million CNY for house demolition and relocation. Detailed data is shown in detail in Table 5. Compared real resettlement cost with Budget in RP, we can find out that the differences between estimated cost and the actual cost of the resettlement is small. EA and local governments have solved the fund sources for resettlement compensation effectively and guaranteed the realization of resettlement target in financing. 16. In the processes of land acquisition and relocation, resettlement agencies paid much attention to transparency of information. Resettlement agencies communicated with affected people by various ways, such as announcement, mass meeting, visiting, publicizing, and so on. 17. Resettlement agencies have always been attached great importance to the participation of affected households and set up a transparent and effective appeal mechanism. In case of any dissatisfied with resettlement, they can make an oral or written appeal. 18. In the process of land acquisition and relocation, Resettlement agencies have done a lot of fruitful and effective work. Dealing with the problems timely in the process can help affected people, resolving the difficulties and ensuring the resettlement. 19. More needs to be done after road reconstruction. The issue of alternative residential land is somewhat troublesome to affected households. By means of whole development, such problems are

7 perfectly solvable by resettlement agencies. However, new residential land is still difficult for some affected households. 20. Another problem for affected households is that compensation rate for permanent land acquisition is low. Although it accord to law and regulation of China, affect households seldom have cultivated lands which is important to their life. Therefore, it is necessary for resettlement agencies to provide assistance to affected households more that will recover the production and livelihood order. 21. Resettlement agencies should pay much attention to the rehabilitation work after the rebuilding of highway, such as the recovery of temporary used land. For example, some affected people reflected that the work of rebuilding the affected quay has not been finished. C. Chapter 3: Project Impacts As the project is updating the existing road by widening from 3.5m to 7.5m, land acquisition and structure demolition are inevitable. The information of land acquisition and structure demolition in resettlement plan is: Permanent land acquisition can reach mu (40.9 hectares), About 23% cultivated land (138.5 mu) in permanent acquisition land. The number of affected persons is 5155 among 1103 households. Temporary land to be rented during construction and will amount to mu (13.9 ha). About 517 private households (housing demolition 409, partial demolition 108) will require resettlement, the total number of persons affected will be around 2,752. The Floor space of private house requiring relocation is m2. No public service area such as school, hospital, factory, etc will be affected. The actual total permanent land acquisition of Zhangjiajie Yuanling highway is mu (Jiemuxi township: mu, Shenxikou township: mu, Yuanling town:89.85 mu)which accounts for 112.3% of that in the AP. Among it, cultivated land mu (paddy fields: mu, dry land: mu) accounts for 143% of that in the AP. About 2,181 households, 10,475 people are affected. Temporary land acquisition is 210.4mu. Compared to resettlement plan, land acquisition area of Zhangjiajie Yuanling highway, especially cultivated land area is more than original plan. The main reason is that zhangjiajie Yuanling highway with mountains on the one side, with water on the other side, and the mountains are so high and so steep, landslide in severe cases, thus, more lands were acquired from red line. The total floor space of houses demolition is 52,122.4 m2, the total number of affected households is 427(1763people), (affected by loss of housing 100%, not including affected by loss of housing Partially). Compared to resettlement plan, the actual area of houses demolition and affected households of Zhangjiajie Yuanling highway are accord to original plan. Table 1: Land and Property Acquisition and Affected People of yuanling section Total Land permanently Acquired Total Cultivated Land permanently Acquired Unit Affect type Total Actual Mu RP Actual / RP 112.3% Mu Actual RP 138.5

8 Floor space of Houses demolished Partially Affected by Land loss Partially Affected by Land loss Affected by Loss of Housing (100%) Affected by Loss of Housing (100%) M2 No. of Households No. of APs No. of Households No. of APs Actual / RP 143.0% Actual RP Actual / RP 99.9% Actual 2181 RP 1103 Actual / RP 197.7% Actual RP 5155 Actual / RP 203.2% Actual 427 RP 409 Actual / RP 104.4% Actual 1763 RP 2190 Actual / RP 80.5% Data sources:headquarter of Zhang-Yuan Highway Improvement D. Chapter 4: Resettlement Process The Project Executing Agency (EA) is Huaihua Zhangyuan Highway Construction Ltd. (HZHCL), directly under the Hunan Highway Administration Bureau (HHB) of Hunan Provincial Communications Department (HCD). On 27 September 2004, HZHCL was established to construct and operate the Zhangjiajie Yuanling highway. As the Project Implementation Agency (IA), the HZHCL is directly responsible for resettlement planning, supervision and funding. In early March 2006, Yuanling government set up Headquarter of Zhang Yuan Highway Improvement, which is responsible for RP implementation and supervision in yuanling section. In March 2006, Yunling government issued an announcement of construction of Zhangjiajie Yuanling highway, publicized acquisition and resettlement plan of Yuanling section of Zhangjiajie Yuanling road, and put it up in towns which are along the road. On April 3, 2006, Yuanling held resettlement mobilization meeting. Leaders from towns and villages along the road took part in the meeting. House demolition started in early may, Until the end of 2006, besides 57 houses near Yuanling town and 9 houses at Jiemuxi Township, 369 houses in the red line and subsidiary buildings have been relocated. The floor space of house demolition is 37,783m 2. These houses in Yuanling town were demolished from March 2009 and have been demolished thoroughly till now. The permanent land acquisition project ended at the end of 2006, a total of mu various types of land were acquired. The compensation has paid to all affected households. Most project affected people have entered into the production and livelihood restoration stage. The Yuanling Section commenced construction of civil works in November As of 30 August 2009, HZHCL briefed that Yuanling Section had achieved about 90% progress. Yuanling Section is expected to be officially opened to traffic in December Generally, it is followed the principle of compensation first, land acquisition and demolition second, and then providing land for construction to dealing with the relations of land acquisition, relocation, resettlement and the project constructing

9 schedule. There is neither the phenomenon using the land without compensation and resettlement first appear, nor does it appear a large scale of delay causing by the funds for land acquisition and relocation are not available or the compensation is not offered in time. E. Chapter 5: Resettlement Policy 5.1 The Actually implemented resettlement policy The project of land acquisition is accordance with the Resettlement Plan compiled in June 2006 and based on a combination of PRC laws regulations and Asia Development Bank s policy on Involuntary Resettlement. The following laws and regulations were utilized for this project: Implementation Regulations for Land Administration Law of the People s Republic of China, effective January Measures of Information Publicizing for Land Acquisition, No. 10 Order, Ministry of Land and Resources, effective on January 1, Implementation Measures for the Land Administration Law of PRC in Hunan Province, effective as of March 31, 2000). Decree 28 for Land Administration Law (Promulgated in October 2004) and Hunan Provincial Document No. 24 (February 2005) Management Measures on Temporary Land Occupation, No. 140 Order, Human People s Government, effective Forestry Law. The following document was utilized for this project: Huaihua People's Government Office Files(HHCR 2006 No.4) 5.2 Actually implemented compensation rates No land redistribution was made within the village, as the local road improvement is on the exiting road, only a small piece of land was lost of the household whose farmland neighboring the road, and there were no additional farmland available within the village. Cash compensation was paid to those affected household by land loss. The actual compensation rates for permanent land acquisition of Yuanling section were shown as follow in table 2. Compared to resettlement plan, you can see the actual implementation compensation rates for permanent land acquisition are lower. Table 2: Compensation Rate for Permanent Land Acquisition Unit: RMB/MU Type Irrigated Dry land barren Wasteland water ponds timber forest housing plots Actual

10 RP Actual/RP 68% 50% 50% 57% 69% 23% 96% Data sources:headquarter of Zhang-Yuan Highway Improvement Compensation rates for temporary loss of land: Irrigated land according to 500RMB per mu per year, dry land according to 300 RMB per mu per year. Actual compensation rates for houses and buildings were shown as follow as table 3. Compared to resettlement plan, you can see the actual compensation rates for houses and buildings are lower. Especially compensation rate for Wood & tile roof house is lower than RP. Table 3: Compensation Rates for Houses and Buildings Unit: CNY/m 2 Structure Brick & Brick & wood Clay & Wood Wood & Simple Houses Concrete (tile) (tile) tile roof Actual RP Actual / RP 93% 91% 78% 63% 78% Data sources:headquarter of Zhang-Yuan Highway Improvement In addition, according to the special position of households required relocation in Huangcaowei neighborhood committees and county city, County and town resettlement agency gave more support to them. As the places belong to Wuqiangxi reservoir area and it is the second time for them to transfer, additional transfer expenses were giving to them. For the deep house foundation, the households got the allowance through the current national standards. Along the line of Zhang Yuan highway, mountains there are high and steep. The greatest difficulty of households required relocation is hard to find a suitable relocation sites. The county resettlement agency developed 16,000 m2 housing land in three town along the line in order to allow households required relocation can rebuilt their new house as soon as possible. F. Chapter 6: Income and livelihood Restoration 6.1 measures to income and livelihood restoration The resettlement agency and other departments of government had taken some active measures to restore the income and livelihood of project affected people. The measures are just as follows: (1)Combining with new rural development planning, develop agricultural industrialization and nonagricultural industries. The upgrading of Zhang Yuan highway and the opening of Changde Jishou Expressway will provide a convenient traffic conditions for villages along the lines to develop industrial management of agriculture and processing industry for agricultural products(such as yellow ginger, orange, sweet orange, etc.). The departments of Yuanling county take this opportunity to advance economy development. The agricultural bureau, animal husbandry bureau, agricultural machinery bureau, etc. provide services such as industrial planning, technical training and scientific demonstration for farmers to promote the industrialization operation of agriculture.

11 The upgrading of Zhang Yuan highway and the opening of Changde Jishou Expressway also improve the prospect of regional tourism. Yuanling is located in the northwest of Hunan province. It is rich in tourist resources, especially humanistic tourist resources. Yuanling along with Zhangjiajie and Fenghuang is called "Golden Triangle" of Xiangxi. In order to make YuanLing as the second foreign tourism brand in Hunan, Yuanling county take a series of actions in foreign tourism promotion, tourism culture study, tourism infrastructure construction, and foreign investment projects so as to promote the development of Yuanling tourism. 2) To organize the transfer of surplus labor force The transfer of labor force from affected areas to economically developed coastal areas is an important way to restore income of affected people since rural urban development divide and regional disparity is existed. Public services provided by the government such as technical training, employment information providing etc. promoted the transfer of labor force in affected areas. The Sunshine Project, carried out by the departments of government in affected areas, made a good effect on employment promotion for farmers. Sunshine Project provides financial subsidies to farmers who have the wish to work in the secondary and tertiary industries and urban areas, and carry out short term job training before transfer. The trainee contained the project affected people. 3) Special measures to help vulnerable groups The resettlement agency helped vulnerable groups in a number of ways. First, county government, township government, villagers committees and residential committees help them in resettlement, such as help them to reconstruct their new houses. Second, the county resettlement agency gives special attention on finances based on practical situation. Third, civil administration department and association for the handicapped give relief to them. 6.2 Comparative analysis on income and livelihood A comparison about tracked households: In March 2008, the external monitoring agency completed a sample survey on 71 affected household. In August 2009, The external monitoring agency surveyed 12 households from 71 affected households surveyed last year. A list of households surveyed in August 2009 is shown in table 4. Table 4: A list of households surveyed in August 2009 County Town Village Group List of affected people Yuanling county Shenxikou town Jiemuxi Shenxikou Jiuping Long Zede Sanbatan Sanbatan Yang Fei Guizutan Yerongwan Liu Hezhong Guizutan Kaiping Tian Zibiao Zuping Lijia Li Xianhai Zuping Lijia Li Banggan Jundaping Gangshang group Li Yongguo Jundaping Gangshang Group Li yongqing Jiaojiaping Group nine Yang Changqiu Jiaojiaping Group three Yang Changsheng Yuanlin Huangcaowei Wen Qicun

12 town Luxikou Li Zhiliang The survey of these households reflected that in general the standard of livelihood of most affected people in 2008 was essentially flat in The standard of livelihood of most affected people raised after land acquisition, and their living condition also deeply improved. For details, we can see from the following analysis. 1) Long Zede Male, 44 years old, Miao, senior high school educational level, a peasant of Jiuping group, Xikou village, Shenxikou town, Yuanling county. The family has five people, including his wife, daughter, son and father. The household contracted land was not acquired in the process of highway reconstruction, and he has 3.5 mu cultivated land existed. His wood structure house which has 250 m2 was demolished in August And then he reconstructed a new wood structure house which has 180 m2 with the lumber from the old house. The new house cost only 8500 yuan, and the family moved in the new house in September The family's main durable consumer goods are: a color TV, a washing machine, a mobile phone. Annual household income in 2008 was 16,000 yuan which was mainly derived from agriculture, forestry, fisheries. The net income of this family was 9,000 yuan after deducting the cost of 7,000 yuan, which was essentially flat in ) Yang Fei Male, 36 years old, Miao, junior high school educational level, a peasant of Sanbatan village, Shenxikou town, Yuanling county. The family has five people, including his wife, two daughters and his mother. His Brick & wood structure house which has 80 m2 was demolished in September His family lived in his brother s house in the transition period and moved in new house in February His 135 m2 new house was also Brick & wood structured which cost yuan. Since the family moved in the new house, the living condition was improved greatly. The household contracted land was not acquired in the process of highway reconstruction, and he has 1.6 mu cultivated land existed. Annual household net income in 2008 was 16,000 yuan which was mainly derived from working salary, and basically reached the same level of ) Liu Hezhong Male, 46 years old, Miao, junior high school educational level, a peasant of Rongwan group, Guizhutan village, Shenxikou town, Yuanling county. The family has six people, including his wife, two daughters, a son and his mother. His wood house which has 55 m2 was demolished in March And now his family live in a Brick & wood house which has 140 m2.the family has 2.4 mu cultivated land existed. Annual household income in 2008 was 14,500 yuan derived from working received, which was essentially flat in The family's main durable consumer goods are: a color Tv and four mobile phones. 4) Tian Zibiao Male, 47 years old, Miao, junior high school educational level, a peasant of Kaiping group, Guizhutan village, Shenxikou town, Yuanling county. The family has four people, including his wife, and two daughters. His house had not been demolished and the family still live in a wood structure house which has 120 m2. One mu cultivated land was acquired in the process of Zhangyuan highway reconstruction and has still 4.8 mu cultivated land existed. Annual household income in 2008 were 7,000 yuan derived from his daughter s working received and 9,600yuan derived from the income of farming and animal husbandry. The net income of this family was 12,600 yuan after minusing the cost of 4,000 yuan in planting and cultivating, which was greatly increased compared with The family also got a compensation for land acquisition in 2008, almost 6200yuan. The family's main durable consumer goods are: a rice whitening machine, a color TV, a refrigerator and three phones. 5) Li Xianhai

13 Male, 40 years old, Han, junior high school educational level, a peasant of Lijia group, Zhuping village, Jiemuxi town, Yuanling county. The family has four people, including his wife, daughter and son. His wood structure house which has 110 m2 was demolished in June The family live in a 180 m2 brick and concrete structure house now. The household contracted land was not acquired, and he has 3 mu cultivated land existed. Annual household income in 2008 was 8,500 yuan, which was greatly increased compared with 2007(5,000yuan). The family's main durable goods are: a thresher, a color TV, a refrigerator, a mobile phone and a fixed telephone. His daughter's tuition is a major expenditure. 6) Li Banggan Male, 79 years old, Han, illiterate, a peasant of Lijia group, Zhuping village, Jiemuxi town, Yuanling county. The family has four people, including his wife, daughter and grandson. His timber shingle structure house which has 230 m2 was demolished in May The family moved in a 160 m2 brick and concrete structure house in August 2009.He has 1.5 acres of cultivated land existed. The household contracted cultivated land was not acquisitioned, but 0.3 mu non crop land was acquisitioned. The net income of this family in 2008 was 5,000yuan which was essentially flat in ) Li Yongguo Male, 40 years old, Tujia, junior high school educational level, a peasant of Gangshang group, Jundaping village, Jiemuxi town, Yuanling county. The family has four people, including his wife, son and mother. His wood structure house which has 80 m2 was demolished in June The family moved in a 150 m2 brick and concrete structure house in December The total cost to build the new house is about 110,000yuan. The household contracted land was not acquired, and he has 6.5 mu cultivated land existed. The net income of this family in 2008 was 5,000yuan which was essentially flat in The family's main durable goods mainly include: a water pump and motor, a motorcycle, a color TV, a mobile phone and a fixed telephone. 8) Li Yongqing Male, 36 years old, Tujia, primary school educational level, a peasant of Gangshang group, Jundaping village, Jiemuxi town, Yuanling county. The family has four people, including his wife, son and mother. His wood structure house which has 80 m2 was demolished in June The family moved in a 80 m2 brick and concrete structure house in September The total cost to build the new house is about 12,000yuan. He has 2.5 mu cultivated land, and 0.2 mu of non crop land was acquired. The net income of this family in 2008 was 6,000yuan mainly derived from working received, which declined compared with 2007.The family's main durable goods mainly include: a color TV and a mobile phone. 9) Yang Changqiu Male, 45 years old, Tujia, junior high school educational level, a peasant of nine group, Jiaojiaping village, Jiemuxi town, Yuanling county. The family has three people, including his wife and son. His wood structure house which has 58 m2 was demolished in June The family moved in a 80 m2 wood structure house in September The total cost to build the new house is about 12,000yuan. There are 3.7mu cultivated land existed, and 0.2 acre of non crop land was acquisitioned. The net income of this family in 2008 was 8,000yuan which was mainly derived from working received. And the net income in 2008 was essentially flat in The family's main durable goods mainly include: a color TV and a mobile phone. 10) Yang Changsheng Male, 52 years old, Tujia, technical secondary school educational level, a peasant of three group, Jiaojiaping village, Jiemuxi town, Yuanling county. The family has four people, including his wife and two daughters. This family is not a household relocated. The house this family living in is a 120 m2 wood structure house. There are 6.8 mu cultivated land existed, and 0.6 mu non crop land was acquired. The

14 net income of this family in 2008 was 25,000yuan which was essentially flat in The family's main durable goods mainly include: a color TV and a mobile phone. 11) Wen Qichun Male, 51 years old, Miao, primary school educational level, a resident of Huangcaowei committee, Yuanling town, Yuanling county. The family has three people, including his wife and son. His Brick & wood structure house which has 90 m2 was demolished in November The family moved in a 99 m2 brick and concrete structure house in June The total cost to build the new house is about 80,000yuan. The net income of this family in 2008 was 12,250yuan which was essentially flat in The family's main durable goods are: a color TV, a refrigerator, a mobile phone. 12) Li Zhiliang Male, 52 years old, Han, senior high school educational level, a resident of Luxikou committee, Yuanling town, Yuanling county. The family has seven people, including his wife, three daughters, a son and mother. His timber shingle structure house which has 80 m2 was demolished and now the family is renting a house for living. The net income of this family in 2008 was 25,000yuan which was essentially flat in The family's main durable goods mainly include: a color TV, a refrigerator and five mobile phones. 6.3 Evaluation of income and livelihood restoration of affected people All in all, the revenue and earning ability of affected people ensured the restoration and increase of livelihood standard. Outdoor work as the major source of revenue, land acquisition and relocation had nothing influence on their outdoor work revenue. The agriculture revenue was equivalent to about 10 percent of affected family s revenue. Per capita arable land acquired was only about 0.02mu. So, land acquisition had little influence on the livelihood of villagers. Due to factors above, the affected farmers adept to work away from home for income restoration. In some extend, it alleviated stress of local economic recovery. However, Since Yuanling was located in mountain areas, affected households cultivated land is small, and no land redistribution was made within the village after land acquisition, therefore, land acquisition had serious impact on a few households who had more cultivated land been acquired. It is necessary to give more support to them, especially to those disadvantaged group. G..Chapter 7: Structure Relocation and Reconstruction House demolition had started in May 2006, on the end of 2006, besides 57 houses near Yuanling town and 9 houses at Jiemuxi town, all other houses in the red line and subsidiary buildings have been relocated. Until the end of 2006, besides 57 houses near Yuanling town and 9 houses at Jiemuxi Township, 369 houses in the red line and subsidiary buildings have been relocated. The floor space of house demolition is 37,783m 2. These houses in Yuanling town were demolished from March 2009 and have been demolished thoroughly till now. The total area of houses demolition is m2, the total number of affected households is 427(1763people), (affected by loss of housing 100%, not including affected by loss of housing Partially). Compared to resettlement plan, the actual area of houses demolition and affected households of Zhangjiajie Yuanling highway are accord to original plan. Through filed survey on affected households, we learned that compensation for house had already paid in full to the affected households. During the transition period, most affected households inhabit neighbors and relatives houses or their own makeshift shelters. And they all got about 1,200yuan transitional allowance.

15 At present the majority of affected households had already built their new houses and move into new homes. Water supply, electricity supply and pathways of new homes had been handled well. While some households have not yet begun to build new houses because they still can not find suitable new house sites. And some households have difficulties with drinking water. From the perspective of the new houses which had already been built, the housing condition of the vast majority families significantly better than before relocation. Most households houses changed from old wood structure houses into new brick and concrete residences with two floors. Few of families housing condition without obvious improvement, they are still living in old wood structure houses because of impoverishment. Along the line of Zhang Yuan highway, mountains there are high and steep. The greatest difficulty of households required relocation is hard to find a suitable relocation sites. The county resettlement agency developed 16,000 m2 housing land in three town along the line in order to allow households required relocation can rebuilt their new house as soon as possible. For the deep house foundation, the households got the allowance through the current national standards. H. Chapter 8: Infrastructure Rehabilitation Because this project is the expansion of existing highways, the infrastructure was less affected. As there are certain distances from the original highway, schools and companies were not affected by the rebuilding of Zhang Yuan highway. Infrastructures, subjecting to the impact of this project, are mainly the existing cable and many electrical poles and wires for electricity, telecommunications, radios and televisions. After lots of coordination, the cable was started to be removed and altered in December 2006, and electrical poles and wires for electricity, telecommunications, radios and televisions had already been relocated. In this project, 370 telecommunication poles and 414 electricity poles(69 high tension electricity poles included)had been removed, 5 transformers had been shifted, 69360m cable had been migrated and 5175m water pipes had been relocated. All of these facilities are recovered in time, and did not result in a greater negative impact.

16 I. Chapter 9: Resettlement Budget and Payment According to the data offered by Huaihua Zhangyuan Highway Construction Ltd. (HZHCL) dating from September 30th, 2009, EA have paid 31.2 million CNY compensation fees to those affected people, including million CNY which has been used to land acquisition compensation, million CNY for house demolition and relocation, 5.75 million CNY for Taxes and Fees, million CNY for restoring the infrastructure equipments such as power lines, telecommunication lines, etc., and million CNY for management. It is shown in detail in Table 5. Table 5 Resettlement Cost of Yuanling Section of Zhangjiajie Yuanling Highway Cost Item Unit Actual Pay Budget in RP Land Compensation 10,000 CNY Compensation for Structures and Related items 10,000 CNY House land Exploitation 10,000 CNY 230 Taxes and Fees 10,000 CNY Restoring Power Lines and Telecommunication Lines 10,000 CNY Management Cost 10,000 CNY Physical and Price Contingency and others 10,000 CNY Total 10,000 CNY Data sources:hzhcl Compared real resettlement cost with Resettlement Budget in RP, we can find out that because the scale of land acquisition covers much more than planned, land acquisition compensation cost has exceeded greatly to the original plan, too. While the house demolition and compensation cost is also beyond the plan slightly. Therefore, actual resettlement compensation cost has gotten to 31.2 million CNY in total, accounting for 111% to that in the resettlement plan. Generally speaking, it is small in the differences between estimated cost and the actual cost of the resettlement. EA and local governments have solved the fund sources for resettlement compensation effectively and guaranteed the realization of resettlement target in financing. J. Chapter 10: Participation and Information Disclosure In the processes of land acquisition and relocation, settlement agencies paid much attention to transparency of information. In April 2006, Yuanling county government issued an announcement of construction of Zhangjiajie Yuanling highway, Publicized land acquisition and relocation plan of Zhangjiajie Yuanling roads, and put it up in towns which is along the road. The effect is that Let all affected people know the policies and compensation rate. After survey, detailed land acquisition and relocation information was posted for public attention by taking group as unit. If there are any errors can be corrected. The resettlement agency communicated with affected people by various ways, such as announcement, mass meeting, visiting, publicizing, and so on. Resettlement agencies have always been attached great importance to the participation of affected people and set up a transparent and effective appeal mechanism. In case of any dissatisfied with resettlement, they can make an oral or written appeal. From the information we obtained, the problem

17 what they appealed have got highly focus, such as the problem of alternative of residential land have been tackled properly. Some of troubles were in the process of handling. These issues free from defeated also should be set store by resettlement agencies in the future project. K. Chapter 11: Organization and Management The implementing agency for the project is Huaihua Zhangyuan Highway Construction Ltd (HZHCL) under the Hunan Provincial Highway Bureau (HHB). HZHCL were in charge of the implementation of the project and the execution and coordination of land acquisition and resettlement. A LAR Division was set up within the HZHCL with 5 staff. Further, LAR Coordination Division was established in Yuanling County in March The Division were headed by 1 county leader and consisted of 6 members from different government departments like the communications bureau, land administration, environment protection and forestry bureau, one from each department. Each affected township nominated four persons and each village committee nominated at least one person to LAR Coordination Division. The persons nominated were responsible for all resettlement related work. The project established the leading group for Project Implementation in Yuanling County Government (Headquarter of Zhang Yuan Highway Improvement) and a Working Office (including a LAR) under the Leading Group. Under Headquarter of Zhang Yuan Highway Improvement, it sets five departments, namely, working office, land acquisition and relocation department, finance department, safeguard department and engineering department. Working office is for reception, upload, file management and coordination in highway construction. Land acquisition and relocation department is for the survey of Land acquisition and relocation, signed compensation agreement, completed statistics, handed out compensation and etc. Safeguard department is for security along the road. Finance department is for financial management and audit. Engineering department is for connect ditches and wires and other related work while in the construction. In the process of land acquisition and relocation, Resettlement agencies have done a lot of fruitful and effective work. Dealing with the problems timely in the process can help affected people, resolving the difficulties and ensuring the resettlement. L. Chapter 12: Good practices, Remaining Problems and Recommendations Land acquisition and relocation work of this project is well organized sound institution. County, town and village have resettlement agency. LAR Coordination Division of county, town, village and HZHCL had good cooperation in work. The staff worked sturdily, so it assured to put resettlement work to be finished smoothly. More needs to be done in the course of reconstruction. The issue of alternative residential land is somewhat troublesome to affected households. As the mountain along Zhangjiajie Yuanling highway is high and steep, it is difficult for affected households to find a suited residential land. By means of whole development, such problems are perfectly solvable by resettlement agency. However, still residential land is difficult for some affected households to find. Another problem for affected people is that the compensation rate for land acquisition is low. Although it accord to law and regulation of China, affected households seldom have cultivated lands which is important to their life. Therefore, it is necessary for resettlement agency to provide assistance to affected people continuously that will recover the production and livelihood order. Simultaneously, resettlement agency should pay much attention to the rehabilitation work after the rebuilding of highway, such as the recovery of temporary used land. For example, some affected people reflected that the work of rebuilding the affected quay has not yet been finished.

18 M. Chapter 13: Annexes Annexes 1 Location Map of Zhang Yuan Highway Improvement Project

19 Annexes 2 Related Files of Resettlement Policies in this Project 1)Huaihua People's Government Office Files(HHCR 2006 No.4)

20

21

22

23 2 ) Yuanling People's Government Office Files : Announce on Optimizing the Constructing Environment of Yuanling Section of Zhangjiajie Yuanling Highway (YLCR[2006]No.16)

24 Annexes 3 Scanning Pictures of Land Acquisition and Demolition Agreements

25

26 Annexes 4 Pictures of Affected Houses (1)Mr. Yang Fei s original House in Sanbatan village, Shenxikou town, Yuanling county.

27 (2)Mr. Yang Fei s New House in Sanbatan village, Shenxikou town, Yuanling county. (3)Mr. Li Xianhai s original House in Zhuping village, Jiemuxi town, Yuanling county

28 (4)Mr. Li Xianhai s New House in Zhuping village, Jiemuxi town, Yuanling county (5)Mr. Li Banggan s original House in Zhuping village, Jiemuxi town, Yuanling county

29 (6)Mr. Li Banggan s New House in Zhuping village, Jiemuxi town, Yuanling county (7)Mr. Li Yongguo s original House in Jundaping village, Jiemuxi town, Yuanling county(he ownes half of it)

30 (8)Mr. Li Yongguo s New House in Jundaping village, Jiemuxi town, Yuanling county Annexes 5 pictures of Resettlement Working Scene

31 (1)2 pieces of house base land Exploited by resettlement agency located at K and K in jiemuxi town respectively, and its total area is about 9200m2.

32 (2)House Base land Exploited by resettlement agency located at K in shensikou town is approximately 1400m2 large.

33

34 (3)House Base land Exploited by resettlement agency located in the Yuanling town at K and K , with a total area of approximately 5500m2,

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