PRC: Guangxi Beibu Gulf Cities Development Project

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1 Resettlement Plan December 2010 PRC: Guangxi Beibu Gulf Cities Development Project Beihai City Yinpan Urban Road and Related Infrastructures Component Prepared by Beihai Road and Port Construction and Investment Development Co., Ltd. with assistance of Beijing Enrimu Science & Technology Consulting Co., Ltd. for the Asian Development Bank. 1

2 CURRENCY EQUIVALENTS (as of 20 December 2010) Currency unit Yuan Renminbi (CNY) CNY1.00 = $ $1.00 = CNY ABBREVIATIONS ADB Asian Development Bank AFs Affected Families AHs Affected Households APs Affected Persons BESTCCL Beijing Enrimu Science &Technology Co., Ltd. BHDAO Beihai House Demolishment Administration Office BLRB Beihai Land Resources Bureau BMG Beihai Municipal Government BPMO BeihaiProject Management Office BRPCIDCL Beihai Road and Port Construction and Investment Development Co., Ltd. DI Design Institute BP Bank Policies DMS Detailed Measurement Survey EA Executing Agency F Females FSR Feasibility Study Report GDG Gangkou District Government GDP Gross Domestic Product GZAR Guangxi Zhuang Autonomous Region HDAO House Demolishment Administration Office HHs Households IA Implementing Agency IMA Independent Monitoring Agency LA Land Acquisition LAR Land Acquisition and Resettlement LRB Land Resources Bureau M Males M&E Monitoring and Evaluation MLG Minimum Living Guarantee OP Operational Procedures PLG Project Leading Group PMO Project Management Office PPTA Project Preparatory Technical Assistance PRC Peoples Republic of China RIB Resettlement Information Booklet RO Resettlement Office ROW Right of Way RP Resettlement Plan S&T Science & Technology ToR Terms of Reference VCs Village Committees WF Women s Federation 2

3 WEIGHTS AND MEASURES ha hectare km kilometer Km/h Kilometer per hour m meter m 2 square meter mu Chinese area measure for land 1mu = 1/15 ha (1 ha = 15 mu) (i) NOTE In this report, "$" refers to US dollars. This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. 3

4 Guangxi Beibu Gulf Cities Development Project Beihai City Yinpan Urban Road and Related Infrastructures Component Full Resettlement Plan Beihai Road and Port Construction and Investment Development Co., Ltd. Prepared with Assistance of Beijing Enrimu Science & Technology Consulting Co., Ltd. 20 December

5 ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN (English Translation of the signed Endorsement Letter) Beihai Road and Port Construction and Investment Development Co., Ltd., the implementation agency (IA), together with the assistance of the Beijing Enrimu Science & Technology Consulting Co., Ltd. (BESTCCL) has prepared this full Resettlement Plan (RP) for the Beihai City. Beihai City Yinpan Urban Road and Related Infrastructures Component is one of the subcomponent under Guangxi Beibu Gulf Cities Development Project, which is under application for a loan from the Asian Development Bank (ADB). The RP fully complies with requirements of the relevant laws, regulations and policies of People s Republic of China, Guangxi Zhuang Autonomous Region and Beihai Municipal Government as well as complies with ADB s Safeguard Policy Statement (2009). This resettlement plan is based on the feasibility study report (FSR) and measurement and socioeconomic surveys and Beihai City Project Management Office hereby confirms the content of this RP and will guarantee the land acquisition and resettlement and compensation budget being provided according to the provisions of aforesaid plan. This RP will be revised and approved by ADB before its implementation when the detailed design is completed. Thanks for all your support and help to Guangxi Beibu Gulf Cities Development Project. Sun Daguang Vice Mayor of Beihai City 24 December

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7 TABLE OF CONTENT ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN... 7 TABLE OF CONTENT... 7 LIST OF ACRONYMS AND MEASURES... 9 EXECUTIVE SUMMARY I. INTRODUCTION Background Description of the Project LAR Impacts of the Project II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT Measures Taken to Avoid or Minimize LAR Impacts Methods of LAR Impact Assessment Scope of LAR Impacts III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION Socioeconomic Profile of Beihai City Socioeconomic Profile of the Affected Area and APs Demographic Features of APs Residential Houses Land Use Financial Situation of Households Vulnerable Groups Gender Perspectives on Resettlement IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE Public Participation Strategy Methods and Measures of Public Participation Public Participation during RP Preparation Women s Participation Information Disclosure Resettlement Information Brochure Distribution of the Resettlement Plan Public Participation Plan during RP Implementation V. APPEALS AND GRIEVANCE PROCEDURES VI. LEGAL FRAMEWORK AND POLICIES Applicable LAR Laws, Regulations and Policies ADB s Involuntary Resettlement Policies Related Laws and Regulation of PRC Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration, issued by State Council, October PRC Land Administration Law Implementation Method of Guangxi Zhuang Autonomous Region for Land Administration Law

8 6.4 Gaps between ADB and Chinese Policies Compensation Criteria and Principles Entitlement Compensation Principles Compensation Rate VII. ENTITLEMENT MATRIX VIII RESETTLEMENT AND REHABILITATON PLAN Objectives and Principles of Resettlement Program Compensation and Rehabilitation Plan Resettlement Options and Plan Employment Opportunities Generated by the Project Social Insurance Project Related Income Generation Opportunities Provision of Technical Training to the APs Rehabilitation Plan of Ground Attachments Special Concerns during Resettlement Process IX. COST ESTIMATES Compensation and Resettlement Costs Annual Budget Flow of Fund X. LAR IMPLEMENTATION SCHEDULE Principles LAR Implementation Schedule XI. INSTITUTIONAL FRAMEWORK Project Resettlement Organizational Set-up Responsibilities Institutional Capacity Strengthening Assessment of Institutional Capacity Institutional Capacity Building and Training XII. MONITORING, EVALUATION AND REPORTING Internal Monitoring External Monitoring and Evaluation Objectives and Requirements of M&E Methodology Major Tasks Reporting Requirements APPENDIX 1: Resettlement Information Booklet APPENDIX 2: TOR for External Monitoring and Evaluation

9 LIST OF ACRONYMS AND MEASURES ADB - Asian Development Bank AFs - Affected Families AHs - Affected Households APs - Affected Persons BESTCCL - Beijing Enrimu Science &Technology Co., Ltd. BHDAO - Beihai House Demolishment Administration Office BLRB - Beihai Land Resources Bureau BMG - Beihai Municipal Government BPMO - BeihaiProject Management Office BRPCIDCL - Beihai Road and Port Construction and Investment Development Co., Ltd. DI - Design Institute BP - Bank Policies DMS - Detailed Measurement Survey EA - Executing Agency F - Females FSR - Feasibility Study Report GDG - Gangkou District Government GDP - Gross Domestic Product GZAR - Guangxi Zhuang Autonomous Region HDAO - House Demolishment Administration Office HHs - Households IA - Implementing Agency IMA - Independent Monitoring Agency LA - Land Acquisition LAR - Land Acquisition and Resettlement LRB - Land Resources Bureau M - Males M&E - Monitoring and Evaluation MLG - Minimum Living Guarantee OP - Operational Procedures PLG - Project Leading Group PMO - Project Management Office PPTA - Project Preparatory Technical Assistance PRC - Peoples Republic of China RIB - Resettlement Information Booklet RO - Resettlement Office ROW - Right of Way RP - Resettlement Plan S&T - Science & Technology ToR - Terms of Reference US$ - United States Dollar VCs - Village Committees WF - Women s Federation km 2 - Square Kilometer % - Percentage mu - Chinese area measure for land, 1mu = 1/15 ha (1 ha = 15 mu) CNY - Chinese currency Yuan CNY 1 = 1/ 6.80 $US ($US 1 =CNY 6.80) 9

10 EXECUTIVE SUMMARY 1. The Beihai City Yinpan Urban Road and Related Infrastructures Component is composed of: (i) km of urban roads, 70 m width of ROW, two-way six lanes, Class I urban trunk road, 60 km/h designed speed; (ii) related municipal infrastructures, including traffic lights, drainage, sewerage pipeline and landscaping. The Project owner is Beihai Road and Port Construction and Investment Development Co., Ltd. (BRPCIDCL). 2. The Project will mainly involve land acquisition and structure demolishment in Yinpan Resident Committee, Binban Village Committee, Huangshao Village Committee, Baidong Village Committee and Bintang Village Committee of Yinpan Township, Tieshan Port District, A total of mu of rural collective land will be acquired permanently, including mu (41.34%) farmland. The permanent land acquisition will affect 78 households or 324 persons. Temporary land occupation will use mu with 114 households or 467 APs to be affected. 1 A total of 6, m 2 of residential houses will be demolished, relocating 78 households or 324 persons. Associated auxiliaries, basic infrastructures and special facilities will also be affected; such as fenced walls, well, water tower, power lines, cable poles, etc. The total numbers of the affected households and populations is 192 rural households and 791 rural persons, including 57 households or 235 persons are vulnerable group in the Project area, including 11 households or 29 persons under five guarantees, 20 households or 85 persons under minimum living guarantee (MLG), 2 households or 11 persons disabled, 15 households or 76 persons extremely difficult families, and 9 households or 34 persons women-headed. 3. In order to avoid or minimize land acquisition and resettlement, there was close consultation with the local officials, resident committee (RC) and village committees (VCs) during the preliminary and final Feasibility Study stages for the optimal and proper engineering schemes of the Project. 4. The compensation of the permanent land acquisition is based on the Land Administration Law of PRC, amended in 2004, Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004, Urban House Demolishment Management Regulations of PRC, GZAR Land Administration Law, Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, and Unified Standard of Annual Output Value issued by the People's Government of Beihai City, which has been carried out since 31 st January, The RP was prepared to comply with ADB s Safeguard Policy Statement (2009). The specific rate for permanent land acquisition is CNY 32,600/mu for permanent land acquisition; the specific rates for temporary land occupation are CNY 2,533/mu for dryland, CNY 2,533/mu for grass land, CNY 2,533/mu for wood land, CNY 1,000/mu for waste land, CNY 2,533/mu for river body land, and CNY 2,533/mu for house plot; and the specific rates for structure demolition are CNY 720/m 2 for brick-concrete houses, CNY 500/m 2 for brick-wood house, and CNY 230/m 2 for simple houses. In addition, relocation subsidies will be provided to the APs at the rate of CNY 8/m 2, and each AP will be provided with temporary transit allowance at the rate of CNY 8/m 2 for a total of 12 months at maximum. The compensation for lost of working days is CNY 300 per household. If the affected households signed the agreement on time, each 1 ADB s Safeguard Policy Statement (2009) trigger for involuntary resettlement changed the terminology of "affected persons" to "displaced persons" which are defined as persons who are physically and/or economically displaced as a result of involuntary acquisition of land or involuntary restrictions on land use or on access to legally designated parks and protected areas. In the PRC, although the resettlement plans maintain the original terminology of affected persons, the definition is equivalent to ADB's definition of displaced persons. 10

11 household will receive CNY 5,000 as award for timely signing the agreement. Based on the consultations with local governments and those affected, and general practice in Beihai City, the resettlement principles established for the Project are: (i) land acquisition and involuntary resettlement should be avoided or minimized where feasible by developing and comparing a series of design alternatives; (ii) compensation and entitlements provided must be adequate to allow those affected to at least maintain their pre-project standard of living, with the prospect of improvement; (iii) land temporarily occupied and the period for disruption are to be kept to a minimum; (iv) all the people affected, legal and illegal, are to be taken into consideration and accounted for; (v) resettlement plan should be prepared and implemented in accordance with state land rehabilitation policy, national economic and social development plans; (vi) all those affected will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans, and project timing; (vii) resettlement plan should be coordinated with such things as regional development, economic development and environmental protection; and (viii) practical and feasible measures should be formulated to restore the affected items; (ix) a preferential policy and assistance will be provided to vulnerable groups in such things as employment; and (x) close monitoring and timely actions will be carried out to identify and resolve any problems. 5. The people affected have been notified about the key elements of the RP. The key elements of the RP have been notified to the affected HHs include the project information, LAR impacts, laws, regulations and compensation, livelihood and income rehabilitation plan, and implementation schedule. During the process of this notification through surveys and consultation meetings, the majority of the affected households request that if their land has to be acquired and structures have to be demolished, they request to get fair and timely compensation, employment opportunities, and children s education. The APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them. They are not willing to engage in agricultural production any more but hope to get the cash compensation and future employment. The affected households would like to use compensation payment to do some businesses or get some training to be employed in enterprises and institutions and no longer engaging in agricultural farming any more. For those who will lose their houses, they expressed that they would use the compensation payment to rebuild structures in the same village or purchase new houses in the centralized resettlement site. All of these concerned raised have been incorporated in the planning and implementation of resettlement program, and relevant mitigation measures have been formulated and will be implemented during the Project implementation phase. The resettlement information booklet will be distributed to affected community and villages and households before 20 December The RP approved by Beihai City Government will be redistributed to resident committee and village committees before 20 December 2010 to anyone wishing to consult the document at the resident community office and village offices. At the same time the RP will be posted on the ADB website. The RP will be updated based on detailed measurement survey (DMS) and will be disclosed to APs and submitted to ADB for review and approval. The Beihai PMO and BRPCIDCL will be responsible for supervising implementation, continuing public consultation, monitoring progress and responding to grievances. The grievance address procedures are well established and explanations are included in the RP and resettlement information booklets. 6. For people losing land permanently, cash compensation will be paid to them to be used for tertiary industry development and the compensation will be based on full replacement value. Similarly, cash compensation for structures and ground attachments will also be on replacement value with no depreciation. The households 11

12 that have to relocate will receive cash or cash plus reconstruction house land within the same village and also they will receive a relocation allowance in cash. The PMO, IA, RO and local government will provide necessary assistance during LAR implementation, such as selection and allocation of new houses and relocation. The measures for economic rehabilitation include: (i) provision of 1,260 person-years or 15,120 person-months or 3.78 million days of employment opportunities to the local community people, including the APs in labor force during the Project construction and 140 public welfare job positions during operational phases provided by the IA. In total, 498 APs in labor forces will be provided with these temporary and permanent employment if the APs would like to take the job positions. (ii) provision of social insurance, with 30% contribution from the local government and 70% contribution from rural collectives and farmers (The land lost farmers pay 20% based on the 40% of the average wage of the urban workers in last year); (iii) annual employment opportunities generated induced by the Project and related urban development projects. The BMG will coordinate with relevant departments, including the owners of the job positions, labor and social security bureau and district government to arrange the APs to be employed for these job positions; (iv) reconstruction land allocation and development managed by village groups in a centralized way for dividend income (70% of the dividends will go to the APs and 30% to the collective village to be used for pension and village public welfare activities), more detailed are provided in Section 8.2.3; and (v) provision of technical training to 204 APs in labor force to be affected by permanent land acquisition to increase their skills to be employed in institutions, enterprises and businesses. For each affected household, average 2.62 persons will get the training. 7. For the people who will lose their land temporarily, cash compensation for the loss of standing crops will be paid to the affecter persons, and cash compensation for the land recovery fees will be paid to the contractors. The land will be restored to original condition and keep the same quality as before by the contractors. The road will be constructed section by section with maximum occupation of land for one year period, thus the compensation for one year standing crops based on the average AAOV of last three years will be paid to the APs. The Project construction will generate 1,260 person-years short-term employment opportunities. The APs will be given priority to be employed during the 20 months project construction with income earnings at over CNY 1,500 per month. 8. For residential houses to be demolished, cash plus provision of reconstruction house plot within the same village for new house construction by the APs will be adopted for this project. Cash plus resettlement houses in the resettlement site will also be adopted for centralized house construction. The households that have to be relocated will also receive a relocation allowance and relocation transit allowance. Compensation for ground attachments will be paid to the affected owners. 9. The cost estimate for land acquisition and resettlement is CNY million or US$ million at the prices of 2010, including compensation for permanent land acquisition, temporary land occupation, residential house demolishment, auxiliaries, relocation allowances, infrastructures and special facilities, relevant land taxes, M&E, other costs, and contingency. The land acquisition and resettlement activities will occur between April 2011 and November Construction will not take place before the APs are fully compensated and relocated, and all arrangements are made to commence the livelihood rehabilitation activities and the APs are registered for these. A community based grievance address procedures has been well established and explanations are included in the RPs and RIBs. Internal and external monitoring of the RP implementation will be conducted to ensure successful implementation of the RP. Monitoring methodologies are specified in the RP. Internal 12

13 supervision and monitoring will be done by the IA to ensure compliance with the provisions of the RP. The PMO and IA have agreed to a set of supervision milestones with ADB, to ensure timely and effective implementation of resettlement activities. An independent monitoring agency under contract to the PMO will carry out external monitoring and evaluation. External monitoring reports will be prepared every 6 months during implementation and annually for 2 years after completion of resettlement. These reports will be submitted to ADB, the PMO and the IA, and will be uploaded to the ADB website. 13

14 I. INTRODUCTION 1.1 Background 10. The Beihai City Yinpan Urban Road and Related Infrastructures is one Component of Guangxi Beibu Gulf Cities Development Project. The proposed Project lies in middle south of Tieshan Port District, Beihai City, Guangxi Zhuang Autonomous Region (GZAR). It sarts from the Yinpan Township, crosses the outlet of Nankangjiang River, passing through Qingshantou, and ends at the plant area of China Petro-Chemical. 11. GZAR has decided Giving Priority Position to Developing Beibu Gulf Economic Zone. Beihai, as the secondary city in the region, is facing great development opportunity. According to Guangxi Beibu Gulf Development Plan, Beihai City will be built to be an extremely large-scale city to fully make use of its advantage for living and facility the urban development. By 2020, the population of Beihai City will reach to 1 to 1.2 million. 12. Tieshan Port District of Beihai City is situated in the south of GZAR, adjacent to Zhanjiang City of Guangdong Province in the east, Beibu Gulf in the south, and Lingshan County, Pubei County and Bobai County in the north. Tieshan Port District is 40 km away from Beihai City, more than 40 km away from Lianzhou Township of Hepu County urban area, 250 km away from the capital of the capital city, Nanning, about 150 km away from Zhanjiang City of Guangdong Province, 124 sea miles away from the capital city, Haikou of Hainan Province. Tieshan Port District is the most rapid and convenient access channel to the sea, and also important transportation hub for GZAR and the southwest to connect with the economic horridor of Guangdong and Fujian by land. 13. Yinpan Township is separated by a river from the Tieshan Port Industrial Zone (which is facing sea). As the supporting living area of industrial zone of Tieshan Port District, Yinpan Township bears the mission to resolve production workers housing problems of Tieshan Port Industrial Zone. Now, there is only one simple road access from Yingpan Township to Tieshan Port Industrial Zone, which is far from meeting the needs of connecting the two places. Therefore, it has important significance for the construction of the Project to implemente Guangxi Beihbu Gulf Economic Zone Development Plan, Beihai City Master Plan, and to improve the lives of local residents. Thus, the construction of the Project is necessary and very urgent. 1.2 Description of the Project 14. The scope of the Project construction includes: (i) km urban roads, 70 m width of ROW, two-way six lanes, Class I urban trunk road, and 60 km/h designed speed; and (ii) related municipal infrastructures, including traffic lights, drainage, sewerage pipeline, and landscaping. Figure 1-1 is the location and layout map of the proposed Beihai City Yinpan Urban Road and Related Infrastructures Component. The total Project investment of the Project is CNY million, of which CNY 250 million will be financed by domestic banks, US$ 36 million (CNY million) will be financed by ADB loan,; and remaining capital from self-financing of Beihai City. The Project will take a total of 20 months construction period. 14

15 Figure 1-1: Location and Layout Map of the Proposed Beihai Yingpan Urban Road 1.3 LAR Impacts of the Project 15. Within the ROW of Beihai City Yingpan Urban Road Network, the land use includes dryland, paddy land, grass land, wood land, wasteland, river body, existing old road, and other lands. Within the ROW, there are also some structures scattered distributed along the road. The scope of the Project impacts is mainly determined by the measurement survey on the basis of the FSR. The construction of the Project will involve permanent land acquisition, temporary land occupation, residential structure demolishment, auxiliaries, and basic infrastructures and special facilities. 16. A total of mu collective-owned land will be acquired permanently for the Project, including mu in Yinpan Resident Committee (33.37 mu dryland, mu paddy land, 1.48 mu grass land, 2.45 mu wood land, mu fish pond, mu river body, 0.78 mu existing old road, and mu other land (including homestead, waste land, and village road); mu in Binban Village (57.76 mu dryland, 0.26 mu paddy land, 3.25 mu grass land, mu wood land, 2.52 mu existing old road, and mu other land); mu in Huangshao Village (29.75 mu dryland, 2.22 mu wood land, 6.55 mu wasteland, 1.36 mu fish pond, and mu other land); mu in Baidong Village (38.31 mu dryland, 6.83 mu wood land, and 1.20 mu other land); and mu in Bintang Village ( mu dryland, mu grass land, mu wood land, mu wasteland, mu fish pond, 2.72 mu existing old road, and mu other land). Due to the permanent land acquisition, a total of 78 rural households or 324 rural populations will be affected. 15

16 17. The land to be acquired for the Project only accounts for 3.07% of the total land area and 3.19% of total collective farmland area of Yinpan Resident Committee, Binban Village, Huangshao Village, Baidong Village and Bintang Village. The local people are increasingly off from agricultural activities for their livelihood. As a result, it can be seen that the impact of the land acquisition to the rural collective is relatively small. However, due to the land loss, associated proportion of income will also be lost. Therefore, the income rehabilitation for the APs has been taken into consideration of the RP. 18. The land use for construction road access and materials storage will temporarily occupy mu of land. 19. Because of the land acquisition, 6, m 2 of residential structures will be demolished, including 4, m 2 brick-concrete structures, 1, m 2 brick-wood structures, and m 2 simple structures. In total, 78 rural households or 324 rural persons will be relocated. For these households to be affected by residential structures, they will also be affected by permanent land acquisition. 20. In summary, the Beihai City Yinpan Urban Road and Related Infrastructures Component will affect 78 households 324 persons for permanent land acquisition and house demolition, 114 households, 467 persons for temporary land occupation. No minorities will be affected within the Project affected area. 21. Based on the design of the Project construction map and the detailed measurement survey (DMS), the RP will be updated and submitted to ADB for review and approval. 1.4 Preparation of RP 22. In line with the ADB s Safeguard Policy Statement (2009) and the relevant laws, regulations and guidelines issued by the governments of People s Republic of China, Guangxi Zhuang Autonomous Region and Beihai City, the RP has been prepared by Beijing Enrimu Science & Technology Consulting Co. Ltd. (BESTCCL) on behalf of Beihai Road and Port Construction and Investment Development Co., Ltd. The RP will be reviewed and approved by Beihai Municipal Government (BMG) and ADB. 23. The RP preparation is based on the following relevant project documents and legal documents, and the results of public participation and consultations. (1) Design Basis: (i) (ii) (iii) (iv) Feasibility Study Reports; Fangchenggang City Economic and Social Development Statistical Communique, 2009; Urban Development Master Plan of Beihai City; and, Eleventh-Five Years Plan of Beihai City. (2) Legal and Policy Basis (i) Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004; (ii) Land Administration Law of the PRC, amended in 2004; 16

17 (iii) Implementation Regulation for Land Administration Law of PRC; December 1998; (iv) Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93]; (v) Temporary Regulations on Farmland Acquisition Tax of PRC, 2008; (vi) GZAR Land Administration Law, 2001; (vii) Temporary Regulations of Farmland Acquisition Tax, 2008; (viii) Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, 2003; (ix) Decree 15 of Guangxi Zhuang Autonomous Region People s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region; (x) Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52]; (xi) Implementation Methods of GZAR farmland occupation tax [Guizhengfa (1987) 88 Hao 59]; (xii) Unified Standard of Annual Output Value issued by the People's Government of Beihai City, 31 th January, 2010; (xiii) ADB s Safeguard Policy Statement, 2009; (xiv) Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998; (xv) Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; (xvi) OM Section F2 Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006; and, (xvii) ADB s Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010). (3) Public Participation and Community Consultation Activities (i) (ii) (iii) (iv) (v) (vi) Visits to the Project affected areas; Consultation meetings with district government leaders, representatives, and APs between April and May, 2010; Sample socioeconomic survey of affected households in May and June 2010; Land acquisition and resettlement survey information between May and June, 2010; Focus group discussion during ADB PPTA phase between April and July 2010; and, Consultation workshops on environment and resettlement in May The objectives of the RP are to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design 17

18 alternatives; to enhance, or at least restore, the livelihoods of all displaced persons 2 in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. 2 In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. 18

19 II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT 2.1 Measures Taken to Avoid or Minimize LAR Impacts 25. To avoid or reduce land requisition and resettlement (LAR) impacts to the minimum, alternatives have been carefully reviewed and the optimal option has been adopted for the Beihai City Yinpan Urban Road and Related Infrastructures Component. By taking into consideration of reducing land acquisition and resettlement impacts, and the life and property security of the residents in the Project Area, the mitigation measures to reduce the LAR impacts have been proposed: 1) strictly control the scope of land acquisition through coordinated surveying and mapping; and 2) avoid the intensive house plot, forest, communication areas, and institutions and enterprises as much as possible. As a result, Option I has been selected as the option of the Project. 26. Option I: the road starts from the north of Yinpan Township center, the land use of the whole line is agricultural land or farmland, few buildings, shortest length of road, and smallest area of land acquisition. 27. Option II: the road starts from the west of Yingpan Township center, there is existing road at the beginning section with the width of 7 m. Buildings on both sides of the road is relatively dense with the distance of 12 m. Important units of Yinpan Township Government and police station are all situated at both sides of existing road. If Scheme II is implemented, it involves large amount of structure demolition, including the major administrative units of Yingpan Township. Therefore, the scheme does not have the condition of implementation. 28. Option III: the advantage of this line is that the channel crossing Nangkang River is comparatively narrow, which can save the bridge construction cost; the disadvantage is that the line is too long, and most of the line runs through long-term implementation area of the plan, which is inconsistent with the purpose of the plan, and development and construction pace of Tieshan Port District. Meanwhile, construction investment and operation cost are extremely high after the completion of the Project. 29. Option IV: the direction of the line is basically the same with Scheme III, and the length of the road is shorter. The operation cost is slightly reduced, however, the river channel crossing Nankang River is narrower and the bridge construction investment is increased. Most part of the line runs through long-term implementation area of the plang. It is inconsistent with the purpose of the plan, and development and construction pace of Tieshan Port District. Meanwhile, the construction investment and operation cost are extremely high after the completion of the Project. 30. Table 2-1 is the alternative comparison of Option I, Option II, Option III and Option IV to minimize LAR impacts on collective-owned land and house demolition within ROW. Table 2-1: Alternatives to Reduce the Land Acquisition and Resettlement within ROW Item Option I Option II Option III Option IV Length of Road (km) Length of Bridge (m) Land Acquisition (mu) , , , Permanent Acquisition of Farmland (mu) House Demolishment (m 2 ) 6, , , , AHs (no.) APs (no.)

20 Item Option I Option II Option III Option IV Total Investment (CNY 10,000) 50,500 56,800 69,100 64,320 Average Cost Per KM (CNY 10,000) 6,474 6,455 5,710 6,068 Total O&M Costs (CNY 10,000) 103, , , ,094 Average O&M Cost (CNY 10,000 / Year) 5,191 5,862 8,077 7, Although Option I needs to build longer length of bridge at the outlet of the river channel, the line is the shortest, and the land acquisition and house demolition impact is the smallest. Besides, the total investment and operation cost are lowerest, and the travelling time wasted during operation is the smallest. From the planned construction sequential order, Scheme I is the best option than other options. Through comprehensive comparison, Option I is recommended for the Project. 2.2 Methods of LAR Impact Assessment 32. The physical identification of impacts are mainly relies on the statistical data obtained from the relevant government organizations, questionnaires, measurement survey, and discussion with APs during field investigation, site visits, meetings, individual interviews, etc. 33. Between April and June 2010, under the supervision of PMO and IA, the Tieshan Port District Government and resident committee (RC) and village committees (VCs) carried out full-scale property and socioeconomic surveys to obtain basic data and prepare the RP. The survey is carried out to clarify the quantity and number of the properties affected by the Project. This has provided basic data for the scope of the Project impacts, the calculation of losses caused by LAR, socioeconomic impacts, planning on livelihood restoration of the APs, budget, and monitoring and evaluation. 34. The Project will affect land, house structures, auxiliaries, and basic infrastructures and special facilities. The quantity and category of the acquired lands and demolished structures were surveyed with the participation of the APs. Resident committee and representatives of the residents and village committees and representatives of the villagers were consulted on compensation standards and resettlement plan for land acquisition and resettlement. 2.3 Scope of LAR Impacts Summary of Land Acquisition 35. According to the identified impact, the scope of the land acquisition and resettlement of the Project includes permanent land acquisition, temporary land occupation, and residential structure demolishment. Some auxiliaries, basic infrastructures and special facilities will also be affected. Table 2-2 provides the summary of the LAR impacts. 20

21 Table 2-2: Summary Land Acquisition and Resettlement Impacts Administrative Jurisdiction Permanent Land Acquisition Temporary Land Occupation Residential Structure Demolishment Total AHs and APs by LA & Demolishment District Township Resident/ Village/ Committee Total Area (mu) Collective Land (mu) AHs (no.) APs (no.) Total Area (mu) AHs (no.) APs (no.) Total Area (m 2 ) AHs (no.) 1 APs (no.) AHs (no.) 1 APs (no.) Tieshan Port Yinpan Yinpan RC , Binpan VC , Huangshao VC 9 33 Baidong VC Bintang VC , Total , Note: 1 AHs and APs are affected by house demolishment will also be affected by permanent land acquisition. 21

22 2.3.2 LAR Impacts by Type of Losses Permanent Land Acquisition 36. The Project will acquire mu of collective-owned land. Table 2-3 provides the impacts of permanent land acquisition within ROW. 22

23 Resident/Vill age Committee Yinpan RC Binpan VC Huangshao VC Baidong VC 7 26 Bintang VC 35 Table 2-3: Impacts of Permanent Land Acquisition Permanent Acquisition of Collective Land (Mu) AH AP Pad Gra Wo Wa Fis s s Dry Old Tot dy ss od ste h River (N (N lan Roa al Lan Lan Lan Lan Pon Body o.) o.) d d d d d d d Other s Total Note: 1 Others include homestead, waste land, and village road. The homestead of the affected households totals at mu, including 1.55 mu in Yinpan RC, 1.60 mu in Binpan VC, 1.70 mu in Huangshao VC, 1.2 mu in Baidong VC, and 5.62 mu in Bintang VC. 2 Dryland, paddy land, fish pond, grass land, wood land and homestead cause impacts on affected households and persons Temporary Land Occupation 37. The Beihai City Yinpan Urban Road and Related Infrastructures Component will temporarily use mu of land. Table 2-4 provides the impacts of temporary land occupation. There are no overlaps among those households affected by temporary land occupation and permanent land acquisition. Resident/Villa ge Committee Table 2-4: Impacts of Temporary Land Occupation Temporary Land Occupation (Mu) AHs APs Rive Gras Woo Wast (No. (No. Drylan r Homestea s d e ) ) d Bod d Land Land Land Total y Yinpan RC Binpan VC Huangshao VC Baidong VC Bintang VC Total Residential House Demolishment and Associated Auxiliaries 38. Within the ROW, the Project will demolish 6, m 2 residential structures. Table 2-5 provides the scope of residential structure demolishment and affected residents. The area of house ranges from 25 m 2 to 150 m 2, with average at 78 m 2 per household. All of the households will be relocated to the new houses within the village or centralized resettlement site, of which 78 households or 324 persons will lose both residential structures and land permanently. 23

24 Table 2-5: Demolishment of Residential Structures Residential Structure Demolishment (m 2 ) Resident/Village AHs (No.) APs (No.) Brick- Brick- Committee Simple Total Concrete Wood Yinpan RC , Binpan VC , Huangshao VC Baidong VC Bintang VC , , Total , , , Table 2-6: Scope of Residential House Demolishment (N=78 HHs) Scope of Residential House Demolishment AHs % <10m % 11m 2 20m % 21m 2 30m % 31m 2 40m % 41m 2 50m % 51m 2 60m % 61m 2 70m % 71m 2 80m % 81m 2 100m % >100m % TOTAL % Ground Attachments 39. Some ground attachments identified by the IA so far will be affected also. The detailed impacts will be more accurately represented after DMS. Table 2-7 are the impacts of affected ground attachments. Table 2-7: Affected Ground Attachments Item Unit Quantity Auxiliaries Fenced wall m 200 Drinking well No. 2 Water tower of Hepu County pearl cultivation Farm No. 1 Basic Infrastructures and Special Facilities 220V power line m 230 Cement power pole No Affected Households and Population 40. In summary, the Project will acquire part of land in 1 resident committee and 4 village committees of Yingpan Township, Tieshan Port District. It will affect 78 households, 324 persons for both permanent land acquisition and house demolition, 114 households, 467 persons for temporary land occupation. No minorities will be 24

25 affected within the Project affected area. Table 2-8 is the summary of the affected households and populations. Table 2-8: Summary of Affected Households and Populations (unit: No.) Administrative Jurisdiction City Beihai District/ Township RC/VCs AHs (No.) Tieshan Port District/ Yinpan Township Permanent Land Acquisition Temporary Land Occupation Residential Structure Demolishment Total AHs and APs by LA & House Demolishment AHs APs APs (Nno.) AHs (No.) APs (No.) AHs (No.) APs (No.) (No.) (No.) Yinpan RC Binpan VC Huangshao VC 9 33 Baidong VC Bintang VC Total Impacts on Vulnerable Groups 41. Of the total affected households by the Project construction, 57 households (29.49% of the total 192 households) or 235 persons are classified as vulnerable families. The type and quantity of vulnerable groups is presented in Table 2-9. Table 2-9: Type and Quantity of Affected Vulnerable Groups (No.) Huangshao Yinpan RC Binpan VC Vulnerable Groups Type VC Baidong VC Bintang VC AHs APs AHs APs Ahs APs AHs APs AHs APs Five Guarantees Family Household Living Under the 2 Minimum Living Security Line Families with Disabled Female-headed Households Extremely Difficult Family Total Households affected by house demolition Note: 1 Families Given/With/Receiving/Enjoying Five Assurances/promises; and, 2 Households living under MLG are classified as the poor households. 3 Families with the labour force mainly on female. 4 The people excluded in the safeguard object of system of safeguard lowest life, but because of illness or accident caused temporary difficulties, they cannot maintain daily life, for the relief mostly the issue of interim relief, and the amount is different by region Impact Analysis Land Loss 42. The Project will lose mu of permanent collective land permanently. Within ROW, partial collective land of 1 resident committee and 4 village committees will be acquired, and 1.85% of village collective land and 0.89% of resident committee and village collective farmland will be lost; and the total affected household will lose 30.99% of their farmland and the impact is significant. However, the local residents 25

26 are less relying on the land for their livelihood, the income loss from their land is average at 9.48% of their total family income or CNY 2,270 per household per year, which is less significant. The land loss analysis is based on the loss of agricultural land and associated income loss. Table 2-10 and Table 2-11 provides the impact analysis of land loss. Table 2-10: Land Loss Analysis of Permanent Land Acquisition by Village RC/VCs Total HHs (No.) Before Land Acquisition Total Popu. (No.) Total Land Area (mu) Of which AHs Farmland (No.) (mu) Land Use by the Project APs (No.) Total Land Area (mu) Ratio of Land Loss Of which Total Farmland Farmland Area area (%) (mu) (%) Remaining Farmland (mu) Yinpan RC 344 1,549 5,886 5, ,934 Binpan VC 402 1,661 6,976 5, ,593 Huangshao VC 452 1,854 7,342 6, ,064 Baidong VC 237 1,028 4,201 3, ,951 Bintang VC 1,247 5,140 21,537 18, ,378 Total 2,682 11,232 45,942 39, ,920 No. Table 2-11: Land Loss Impact Analysis on Households RC/VCs Items Huangshao Baidong Yinpan RC Binpan VC VC VC I Impacts 1 Affected Households by LA (No.) 2 Affected Rural Population by LA (No.) 3 Total Farmland by All AHs before land acquisition (mu) 4 Total Farmland Taken for All AHs (mu) 5 Per Capita Farmland for AHs (mu) before LA 6 Per Capita Farmland for AHs (mu) after LA 7 Percentage of Per-Capita Land Loss (%) 8 Percentage of Income Loss (%) II Income Sources 9 Total Household Average Annual Income Bintang VC % 39.11% 26.67% 37.98% 24.49% 4.10% 9.05% 6.17% 8.83% 12.21% 37,048 32,291 12,793 20,485 19, Agriculture (CNY10,000) (%) 9.34% 23.15% 23.13% 23.26% 49.85% III Percentage of Land Loss by AHs 26

27 RC/VCs No Items Huangshao Baidong Bintang. Yinpan RC Binpan VC VC VC VC 11 < 10% > 10% - 30% > 30% - 50% > 50% - 70% > 70% - 90% > 90%-100% % 18 Total IV Percentage of Land Loss by APs 19 < 10% > 10% -30% > 30% - 50% > 50%-70% > 70% - 90% > 90%-100% % Total

28 III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION 3.1 Socioeconomic Profile of Beihai City 43. Beihai City administers 1 county and 3 districts, namely Hepu County, Haicheng District, Yinhai District and Tieshan Port District, covering a total area of 3,337 km 2, including 957km 2 of urban area. By the end of 2009, registered population in Beihai City was million, with 16,500 persons or 0.9% increase over last year. Birth rate of the municipality was and death rate The natural population growth rate was 12.45, with 1.05% decrease over last year. 44. According to the initial statistics, the regional GDP of 2009 achieved was CNY 33.5 billion, with increase of 16%; and industrial added value reached CNY 11.5 billion, with increase of 20.8%. The area is rich in grains, peanuts, red jute, sugar cane, mulberry, etc.. The area is also rich in forest resources, with 78,700 ha of forests in the city. There are wide varieties of tropical fruits, mainly citrus, longan, lychee, pipeapple, mango, bananas, etc.. The per capita disposal income of urban residents was CNY 15,134, with increase of 9% over last year, the deposit and savings of urban and town residents were CNY billion, with increase of 27.46% over last year. The consumption price index of the residents increased 7.3% over last year. The average net income per capita of the rural residents was CNY 4,697, with 9% increase over last year. The newly increased employment opportunities in the urban and town areas accounted for 30.7 thousand persons and the registered unemployment rate in urban and town areas was blow 3.5%. The completion of all social and economic indicators was better than expected. The increased rates of major economic indicators are not only at the forefront of the region, but also at the forefront of the nation. 45. Tieshan Port District is located in the south of GZAR, in the east of Beihai city, adjacent to Zhanjiang City pf Guangdong Province in the east, Beibu Gulf in the south, Beihai urban area in the west, Lingshan county, Pubei County and Bobai County in the north. It is located between north latitude ~ and east longitude ~ Tieshan Port District is 40 km away from Beihai downtown area, over 40 km away from Lianzhou Township of Hepu County, 250 km away from Nanning City, 150 km away from Zhanjiang City of Guangdong Province, and 124 sea miles away from Haikou City of Hainan Province. Yinpan Township is located in east of Beihai City, adjacent to Tieshan Port in the south, and bordered with Beibu Gulf, which is is the production area of the South China Sea Pearls. The total area of the township is 99.8 km 2. It governs 10 village committees and 2 resident committees, 109 natural villages, and 263 village groups with a total population of 55,400. It is a national Class I fishing harbor. 3.2 Socioeconomic Profile of the Affected Area and APs 46. This survey was undertaken by the Yinpan Resident Committee, Binban Village Committee, Huangshao Village Committee, Baidong Village Committee and Bintang Village Committee of Yinpan Township, Tieshan Port District, under the supervision of PMO and IA between April and June, The survey was carried out by the affected resident community and villages. Its main objectives were: (i) to compile socioeconomic information on the APs likely to lose land or property to the Project component; (ii) to obtain information on the extent of APs knowledge of the proposed Project; and (iii) to identify APs preferences regarding land acquisition, structure demolishment and income rehabilitation measures. 47. The survey covers all the households of the resident committee and village 28

29 committees to be affected by permanent land acquisition and structure demolishment. A total of 78 households (100% of households to be affected by permanent land acquisition and 100% of households to be affected by the residential house demolishment) of the total affected households were surveyed. Table 3-1 presents the surveyed RC / VCs and households, and Table 3-2 shows the socioeconomic status of the affected resident committee and villages. Table 3-1: Surveyed Household and Units District Township RC/VCs No. of Surveyed Household Yinpan RC 14 Binban VC 13 Tieshan Port Yinpan Township Huangshao VC 9 District Baidong VC 7 Bintang VC 35 TOTAL Demographic Features of APs 48. The detailed demographic features of surveyed APs are listed in Table 3-2, including age, population composition, education and occupation by gender. 49. Of the total surveyed household populations, all households and populations are rural, including 156 persons or 48.15% are women. The family size is 4.15 persons. Of the total affected rural population, 204 APs are in labor force accounting for 63% of the total population. The ages of the surveyed population showed that the population is approximately distributed in normal situation, between 7-19 years old accounting for 15.37% of the total sampled population; the majority of the population between years old who represent the major workforce and account for 49.19% of total sampled population, and between years old accounting for 27.56% of the total sampled population. 50. Over half (72.57%) of the household members have received primary and junior middle school education, junior high school education ranked first, 37.57%, primary school education ranked second, 35%, senior high school education ranked third, accounted for 13.26%, illiterate persons ranked fourth, accounted for 8.17%; The rest 1% have received education from university or above. Illiterate persons mostly are those who are over 60 years old. Of the total surveyed respondents, 79.98% are those who are over 60 years old or less than 6 years old. 51. The employment is characterized by 59% of the APs in labor force engaged in transportation service industry and seasonable labor, 30% engaged in agricultural, acquaculture and sideline, 6% engaged in township enterprises, and 5% living on the government subsidies. Meanwhile they also use low-peak season during agricultural production period to go out for seasonable labors. Some women and young people also go out for seasonable work, and this become to be the main income resources. Except agricultural production, 59% people are engaged in seasonable labor and transportation service industry. 29

30 Table 3-2: Demographic Features of the Surveyed Populations Item Male Female Total Number % Number % Number % Households: % % % Household Size: 4.15 Age 6 Years % % % 7-19 Years % % % Years % % % Years % % % Years % % % Years % % % % % % Total % % % Composition Kids (< 7 years old) % % % Students % % % Labor Force % % % Retired* % % % Total % % % Education Illiterate % % % Primary school % % % Middle school % % % High school % % % Vocational School % % % College % % % University or Above % % % Total % % % Occupation Agricultural, aquaculture and sideline % % % Transportation service & Seasonable labor % % % Township enterprises % % % Government subsidy % % % Total % % % Note: The retired person means female 55 years, male 60 years. Data sources: Socioeconomic survey between April and June, Residential Houses 52. All structure within the scope of the Project ROW will be demolished. According to the survey, it indicates that the average area of structures is 78 m 2. Table 3-3 is the area of structures to be demolished. Table3-3: Area of Residential Structure Demolishment (N=78 AHs) unit: m 2 /AH Structures Min. Max. Average No. of Rooms Area of Structures (m 2 ) The affected structures mostly include brick-concrete, brick-wood, and simple structures, of which 68.87% are brick-concrete, 26.55% brick-wood, and 4.58% simple structures. 30

31 3.2.3 Land Use 54. The affected 1 resident committee and 4 village committees have a total of 27,699 mu farmland, 2,682 households or 11,232 persons. Before the land acquisition, the average farmland per household is mu, with average farmland of 3.49 mu per capita, and after the land acquisition, the average farmland per household is mu, with average farmland of 2.41 mu per capita. The detailed land holding is presented in Table 2-11 above. The land use in the affected resident committee and villages mainly includes paddy land, dryland, grass land, wood land, fish pond, river body, wasteland and other land. The major agricultural and economic crops are paddy rice, sugar cane, cassava, water melon, peanuts, etc.. The major acquactic products are shrimp, crab and fish. The fruits are pineapple, lychee and longan. As a result of land acquisition, the affected village groups will lose 3.07% of their land, including 3.19% of collective farmland Financial Situation of Households 55. According to the statistical data of the surveyed households, the average annual income is CNY 23,975 per household or 5,777 per capita, of which 56.65% are from transportation service and seasonal labor (construction and food catering industries), 23.18% from agricultura, aquaticl and sideline business income, and 6.5% from fixed salary, 3.5% from government subsidy, and 10.17% from others. Of the total household income, 62% are contributed by males and 38% by females, mainly due to males engaged in transportation and seasonable labor. Table 3-4 provides the details of the average income of the affected households by gender. Table 3-4: Average Income of the Affected Households by Gender Average Annual Income of Households Income Income of Total % of Male % Female (CNY) (CNY) (CNY) Source of Income Fixed Salary 1, % % % Transportation and Seasonable Labor (Construction and Food Catering Service) 13, % 8, % 5, % Agricultural, Aquatic & 5, Sideline Products 23.18% 2, % 3, % Government Subsidy % % % Others 2, % 1, % % Total % 14, % 40.62% 23,975 9, % 56. The results of the survey show that the average annual food expenditure per household is CNY 15,538, accounted for 36% of the total household expenditure. See Table 3-5 for the details of average household expenditure. Table 3-5: Average Annual Expenditure of the Affected Households (N=78 HHs) Expenditure Average Annual Average Annual % of Total Expenditure Per Expenditure Per Expenditure Capita (CNY) Family (CNY) Food 1, , % Water & Electricity Cost , % Clothes , % 31

32 Expenditure Average Annual Expenditure Per Capita (CNY) Average Annual Expenditure Per Family (CNY) % of Total Expenditure Transportation , % Telecommunication % Education , % Medical Care % Gifts % Agricultural input , % Others Average Annual Household Expenditure 3, , % Vulnerable Groups 57. In total, there are 57 households and 235 persons classified as vulnerable households in the Project affected area. The vulnerable groups were identified based on field survey. The vulnerable group includes Five Guarantees households, households living under MLG, households with disabilities, households under extremely difficulties, and female-headed households. Details for status quo of affected vulnerable group are showed in Table Of the total 57 affected vulnerable households, 11 households enjoying five guarantees (Households Given / with / Receiving / Enjoying Five Assurances / Promises) who are long-term sick without labor force and income source, and family member to support them or disabled, and they live on the subsidy of the government. They do not engage in any economic activities, thus land acquisition and resettlement activities cause losses to their livelihoods and income, and they still enjoy the same subsidy provided by the BMG. During the resettlement process, Beihai Municipal Government and IA will provide them priority to allocate the house plot and assist them in house construction as well as provide them priority of house and floor selection and necessary assistance to them during the resettlement process. 59. For the 2 households with the disabled, they will get compensation for land acquisition and they will still enjoy the treatment for disabled persons. The Beihai Municipal Government, RC and VCs, and the IA will give them more care and assistance for structure demolishment, training and employment. 60. For the 20 households living under MLG, they will be provided with MLG fund at CNY 200/capita/month by the civil affairs bureau. The implementing agencies will also give them additional care and preferential policies, to provide them with training and employment opportunities. Beihai Municipal Government could also assist them to get access to small credit from banks or provide the necessary assistance to them during the resettlement process. They will lose 85 mu of farmland in total or 4.5 mu farmland per household and remaining farmland they will have is 201 mu or per household. 61. For the 9 female-headed rural families, they are engaged in agriculture and animal breeding. Their monthly net income from economic activities ranges from CNY 500/capita to CNY 800 / capita. After land acquisition, they will loss partial income from land related activities at about CNY 200/capita to CNY 350 / capita per year. In addition, Beihai Municipal Government will provide them necessary supports during resettlement process and also assist them to get access to small credit from banks. Their future livelihood and income will be ensured and improved. They will lose 40 mu 32

33 farmland in total and will have 89 mu remaining land. 62. For the 15 extremmely difficult families, they mainly engaged in transportation, seasonable labor, agriculture and breeding, as illness or accident caused temporary difficulties, they cannot maintain daily life, but they are excluded in the safeguard object of system of safeguard lowest life. Their monthly net income from economic activities ranges from CNY 1,200/capita to CNY 1,800 / capita. After land acquisition, they will loss partial income from land related activities at about CNY 400/capita to CNY 500 / capita per year. In addition, Beihai Municipal Government will provide them necessary supports during resettlement process and also assist them to get access to small credit from banks. Their future livelihood and income will be ensured and improved. In addition, the government will provide with temporary relief according to different case of extremely difficult families. They will lose 67 mu of farmland and 151 mu remaining land. 33

34 3.2.6 Gender Perspectives on Resettlement 63. When asked the surveyed households on the resettlement issues, the majority of the affected households request fair and timely compensation, employment opportunities, education for their children, if their land has to be acquired and structures have to be demolished. In comparison with house demolition, the APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them. As they live close to the urban area, they are not willing to engage in agricultural production any more but hope to get full cash compensation and employment opportunities. Although there are still 10% males and 30% females would like to obtain reserved development land (reconstruction land for dividend income earnings rather than farmland), the Government in Beihai has not implemented such measure to reallocate reconstruction land to the land lose farmers so far. Therefore, based on the consultation with the local land resources bureau and IA and APs, cash compensation will be provided to all the land loss farmers, in turn they could use for tertiary industry development or they could use the cash compensation to buy or rent land from others farmers if they prefer. The surveyed 78 households would like to use compensation payment to do some businesses or get some training to be employed in enterprises and institutions and no longer engaging in agricultural farming any more. Table 3-6 provides the opinions and concerns of the APs for resettlement. All of these concerned raised have been incorporated in the planning and implementation of resettlement program, and relevant mitigation measures should be formulated and implemented. Table 3-6: Opinions and Concerns of the APs on Resettlement Item % of Males % of Females Fair Compensation Availability of Replacement Houses Timely Compensation Employment Obtaining Reservced Development Land All Cash Compensation Future Employment Children s Education Assistance during Resettlement Loss of Family Social Network Others (Government s Assistance) Of the total affected population, 156 persons or 48.15% are females including 91 women are in labor force. As more men move out of the villages for seasonable labor, there is increasing proportion of women engaging in agricultural and household activities than their male counterparts. As a result, the income made by women from farming and sideline activities is 2.62% higher than males. Thus, the impact of land loss will be higher for women than men. However, the land acquisition also provides opportunities for women to be engaged in non-agricultural activities which are more suitable for them, such as food catering services, hairdressing salon, clothing store, grocery store. These business/job opportunities will reduce women s heavy workload from agricultural farming and make them generate higher income from the development of tertiary industry. As a result, women to be affected are willing to give their land for the construction of the Project. To switch from agricultural activities to service industry, it is important that local government and IA ensure proper training provision to women which could help them to gain the necessary skills and knowledge to operate the business or perform the work. 34

35 IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE 4.1 Public Participation Strategy 65. Great attention has been paid to public participation under the Project during the planning, and RP preparation. Comments have been solicited from each affected community and village committees, government organizations and affected households. 4.2 Methods and Measures of Public Participation 66. During the preparation of the project FSR, PMO, IA and DI have held various meetings with the relevant organizations and representatives of community and villages regarding the land acquisition and resettlement issues and compensation policies. Comments and suggestions have been obtained on the resettlement site, compensation, and livelihood and income rehabilitation plan. The RP has been prepared based on the above. 67. During the project implementation phase, PMO, IA and RO will encourage local residents to involve in the land acquisition and livelihood rehabilitation and income restoration process. 4.3 Public Participation during RP Preparation 68. During the RP preparation, all relevant organizations and representatives have participated in the following activities: (1) During the measurement survey of land acquisition and resettlement between April and June 2010, all levels of relevant organizations responsible for land acquisition and resettlement, community committee, village committees, representatives of community residents and villagers (including women) have been involved in the survey activities. During the survey, women were basically on the spots, they carefully checked and read the index investigation final results. (2) From April to June 2010, the PMO, IA and DI organized many meetings with district leaders, representatives of RC / VCs, and APs to publicize the existing national, autonomous region and BMG resettlement policies and ADB s Safeguard Policy Statement (2009). Comments have been solicited from the participants for minimizing the project impacts, and formulating the compensation rates, and resettlement and rehabilitation plan. With extensive consultations, the APs who will be affected with different losses all agree with the cash compensation or replacement resettlement in accordance with the national regulations. (3) During resettlement planning period from April to June 2010, PMO, IA, DI, and other relevant organizations visited the affected resident committee and resident group and village committee and villager group, held meetings with participation of the resident and villager leaders and representatives of the residents and villagers to solicit their comments on land acquisition and resettlement, compensation policies and standards, resettlement plan, and restoration measures. These consultation meetings and investigations have generated lots of interests in the resettlement issues and compensation policies, compensation entitlements, and rehabilitation plan. The new house construction within the same villages and replacement house in the 35

36 centralized resettlement site were discussed. (4) In order to strengthen the project awareness and outreach, PMO, IA and DI conducted questionnaire surveys of the APs in April and June The survey covered all the households of RC and VCs to be affected by land acquisition and residential structure; and the result is reliable and reflects the preferences of the APs. (5) Consultation workshops on environment and resettlement between April and May, The results of the consultation indicate that in general, the APs don t expect land readjustment as agriculture farming is not profitable and they want to get cash compensation for service business development, they require fair and reasonable cash compensation and provide employment opportunities, provision of permanent house plot and construction of basic infrastructures, and the payment should be paid timely and sufficient. In comparison with house demolition, the APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them. As they live close to the urban area, they are not willing to engage in agricultural production any more. They would like to fully get cash compensation. They would like to use compensation to reconstruct or purchase new houses. They also would like to use cash compensation from the loss of their land to rehabilitate their livelihood and income, such as: i) purchase of social insurance; ii) development of self-employed tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, dry-cleaning house, entertainment, food catering and hotel services, and tourism); and iii) investment in their children s education. They expect to seek employment in other institutions, enterprises and businesses through training. The APs are satisfied with the compensation rate, and resettlement and rehabilitation measures. However, they also expressed their concerns on fair compensation and timely disbursement of compensation payment. 4.4 Women s Participation 70. Women in the Project area enjoy equal rights with men and they are playing an important role in project planning, design and implementation. During the field survey, about 35% of women have participated in the survey on land acquisition, structure demolishment and inventory indexes. Meanwhile, the local government organized the resettlement consultation meeting (at least 35% participants are women) and some representatives of Beihai City Women s Federation were asked to participate in consultation meetings to fully solicit opinion of local women. The major concerns for women are fair compensation standards and timely compensation payment. They would like to get necessary assistance from the local government during the land acquisition and resettlement process, priority for employment and training opportunities. 4.5 Information Disclosure Resettlement Information Brochure 71. In order to help the APs gain a good understanding of the land acquisition and resettlement policies and their entitled rights, IA (Beihai Road and Port Construction and Investment Development Co., Ltd.) in association with BESTCCL has prepared a resettlement information brochure (RIB) and a copy of RIB will be distributed to each AP before 20 December, Please refer to Appendix 1 for the RIB. The main components of the brochure include: (1) general description (including purpose and 36

37 location) of the Project and the socioeconomic benefits; (2) project impacts; (3) laws, regulations and policies of land acquisition and resettlement; (4) basic rights and entitlements of the APs; (5) compensation rates; (6) resettlement and income restoration plan and grievance procedure; and (7) implementation schedule. The affected persons were satisfied with the compensation rates and the rehabilitation measures proposed. They will sign their agreement on the entitlements. The disclosure procedure can increase the transparency during the resettlement implementation. At the same time, it will advise the APs how they can raise their requests and appeal through various channels (including the RC / VCs, PMO, IA and RO, BLRB, BHDAO, GZAR LRB, GZAR HDAO, and court) and various methods (i.e. by visiting, writing letter or telephone) Distribution of the Resettlement Plan 72. The draft resettlement plan was distributed to the affected RC / VCs in October The RP to be approved by BMG will be redistributed to resident committee and village committees by 20 December 2010 to anyone wishing to consult the document in the RC / VCs. Copies of the RP will be kept in the Project office and affected RC/VCs. At the same time the RP will be posted on the ADB s website. The RP will be updated based on the detailed measurement survey (DMS) and will be disclosed to the APs and submitted to ADB for review and approval prior to start of land acquisition and resettlement activities and approval of civil works contract awards. After ADB approval, the updated RP will also be posted on ADB s website for disclosure. 4.6 Public Participation Plan during RP Implementation 73. In order to address the problems and needs of the APs properly and timely regarding land acquisition and resettlement, further consultations with the APs will continue so that all issues may be addressed prior to the start of construction and the implementation of the RP. Meetings will be arranged by the implementation agencies for land acquisition and resettlement, as appropriate. Each affected household will have the opportunity to negotiate the compensation contract, which they will sign with the RO. Table 4-1 provides the public consultation plan and process. Purpose of Event 1. Provide briefings to APs on Project & RP. Solicit comments from APs. 2. Disclosure of RIB Table 4-1: Public Consultation Plan and Process Form of Implementing Target Timing Event Agencies Participants Community April 2010 PMO, IA, DI, All APs / village June district affected by meetings 2010 government, LAR of the and focus RC and VCs Project group discussion Public & community / village meetings and focus group discussions December, 2010 PMO, IA, district government, BLRB, BHDAO, and RC / VCs All APs affected by LAR of the Project Remarks Meetings held with APs in each community / village Distribution of RIB to all APs to discuss concerns and suggestions on LAR programmes Undertook discussions with various focus groups to solicit comments & 37

38 Purpose of Event 3. Conduct Final Detailed Measurement Survey (DMS) 4. Present Draft Final RP to APs 5. Prepare and Disclose Detailed Design and Updated RP to APs Prior to Submission to ADB for Approval 6. Advise APs of Entitlements and Dates of Disbursement 7. Monitoring of APs, beneficiaries Form of Event Site investigations and household interviews Public & community / village meetings and focus group discussion Public & village meetings and focus group discussion Public meetings Household interviews Timing December, 2010 October, 2010 March, 2011 March, 2011 April 2011 Dec 2012 Implementing Agencies PMO, IA, DI, district governments, BLRB, BHDAO, and RC / VCs PMO, IA, district governments, BLRB, BHDAO and RC / VCs PMO, IA, and district governments, and RC / VCs PMO, IA, and RO PMO, IA, district government, BLRB, BHDAO, and RC / VCs, and independent monitoring agency Target Participants All APs affected by LAR of the Project All APs affected by LAR of the Project Stakeholders, beneficiaries, and APs All APs affected by LAR of the Project Random samples Remarks suggestions Inventory survey of all assets and land holdings Collection of socioeconomic data Distribution of the draft RP to APs to discuss concerns & gaps relating to LAR programs Undertake discussions with various focus groups to solicit comments & suggestions Meetings to be held with beneficiary population, and with APs Household meetings to outline entitlements Provide recommendations and update RP Monitoring plan Note: BHDAO = Beihai House Demolishment Administration Office; BLRB = Beihai Land Resource Bureau; RO = Resettlement Office; RC = Resident Committee; VCs = Village Committees 74. For smooth and successful implementation of the resettlement plan, the APs will be encouraged to actively participate in various land acquisition and resettlement activities. The Project construction will cause some impacts more or less on local people. In order to ensure the APs could benefit from the Project, local people are encouraged to actively participate in the project construction, and necessary consideration and assistance should be provided to local APs in the use of labors. 38

39 V. APPEALS AND GRIEVANCE PROCEDURES 75. APs can propose any complaint related to resettlement issues and compensation. The Project has established a transparent grievance channel in addition to the existing grievance channels of local government. The first step of grievance procedure established for the Project is through resident committee / village committee, which is localized grievance mechanism. The legal resolution is the last step proposed for the APs in case that the APs are not satisfied with the decisions made during the whole localized grievance process. APs will be informed of the above grievance and appeal procedure through public information meetings, the resettlement information brochure and other media, so that they can fully understand their rights for grievance and appeal. The resettlement implementation organizations should resolve the grievance for the APs timely. The basic grievance procedures include the following steps. Stage 1: 76. If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the resident committee / village committee or in oral or in written form. If an oral appeal is made, the community / village will record it on paper and process it. Resident committee or village committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice. Stage 2: 77. If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the district government office after receiving the decision; the district government office will reach a decision in two weeks. The AP will be informed of the result via written notice. Stage 3: 78. If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the Beihai Project Management Office (BPMO) or Beihai Land Resource Bureau (BLRB) or Beihai House Demolishment Administration Office (BHDAO) after receiving the decision. The Beihai City PMO or FLRB or BHDAO will reach a decision in two weeks. The AP will be informed of the result via written notice. Stage 4: 79. If the aggrieved AP is still unsatisfied with the decision of the BPMO or BLRB or BHDAO, he/she will appeal to the GZAR LRB or HDAO after receiving the decision. The GZAR LRB or HDAO will reach a decision in two weeks. The AP will be informed of the result via written notice. Stage 5: 80. If the AP is still dissatisfied with the decision of the GZAR LRB or HDAO, he/she will appeal to the civil division of a people s court according to the civil procedural law after receiving the decision from GZAR LRB or HDAO. The AP will be informed of the result via written notice. 81. The resettlers can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc. 82. An independent agency (IMA) will be hired by the BPMO for the overall resettlement monitoring and evaluation of the Project in Beihai City. The IMA will inspect and report on the resettlement processes and the operation of the BPMO and 39

40 relevant organizations involved in the LAR implementation at different levels and correct any errors made during the resettlement process. 40

41 VI. LEGAL FRAMEWORK AND POLICIES 6.1 Applicable LAR Laws, Regulations and Policies 83. The PRC has established and implemented laws, regulations, and policies on resettlement and compensation for many infrastructure projects. This Project will follow the related Chinese laws, national and GZAR regulations and local bylaws and policies, and also include comments and suggestions from APs, and meanwhile meet the requirements of ADB s Safeguard Policy Statement (2009). The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project. 84. The land acquisition, demolition and resettlement of this Project will be complying with the laws and regulations of PRC, local government and ADB: (i) Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004; (ii) Land Administration Law of the PRC, amended in 2004; (iii) Implementation Regulation for Land Administration Law of PRC; December 1998; (iv) Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93]; (v) Temporary Regulations on Farmland Acquisition Tax of PRC, 2008; (vi) GZAR Land Administration Law, 2001; (vii) Decree 15 of Guangxi Zhuang Autonomous Region People s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region; (viii) Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52]; (ix) Implementation Methods of GZAR farmland occupation tax [Guizhengfa (1987) No ]; (x) Unified Standard of Annual Output Value issued by the People's Government of Beihai City, 31 st January, 2010; (xi) ADB s Safeguard Policy Statement, 2009; (xii) Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998; (xiii) Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; and, (xiv) OM Section F2 Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, (xv) ADB s Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010). 6.2 ADB s Involuntary Resettlement Policies 85. ADB Safeguard Policy Statement (2009) and Resettlement Operations Manual (OM Section F1) have already specified the 3 important elements of the involuntary resettlement: (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the 41

42 same level of well-being with the Project as without it. Some or all of these elements may be present in a project involving involuntary resettlement. For any ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the Project cycle, taking into account the following basic principles: i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. iii) Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. iv) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. vi) vii) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance 42

43 and compensation for loss of nonland assets. viii) Prepare a resettlement plan elaborating on displaced persons entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. ix) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports. 6.3 Related Laws and Regulation of PRC 86. This Project can be implemented based on the PRC Land Administration Law (effective as of January 1, 1999 and amended in 2004), Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration issued by State Council, October 2004 as well as the other relevant laws and regulations Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration, issued by State Council, October Article 12: Improving land acquisition compensation practice. People s Governments at the county level and above shall adopt practical measures to ensure that the farmers whose land is acquired shall not be made worse off. It should be ensured that land compensation fees, resettlement subsidies and compensation for ground attachments and standing crops shall be provided in accordance to applicable laws and regulation in full and in time. If the land compensation fees and resettlement subsidies as stipulated by law still cannot be able to maintain the original standards of the land-losing farmers and are not adequate to cover the social insurance costs of the landless farmers, the provincial government shall approve an increase in the resettlement subsidies. If the sum of the land compensation fees and resettlement subsidies has reached the legal upper limit but still cannot maintain the original living standards of the farmers, the local government can provide additional subsidies with the use of revenues from the sales for the use of state land. The provincial government shall formulate and publicize the standard annual output or regional land prices for land acquisition in the cities and counties under the provincial jurisdiction. Land acquisition compensation shall be kept identical for identical quality of land in same locality. The full costs of land acquisition for national key development projects shall be included in the overall project budget. 43

44 88. Article 13: Properly resettling farmers whose land is acquired. People s Governments at the county level and above shall formulate concrete measures to guarantee the long-term livelihood of the farmers whose land is taken. The farmers shall be given stocks for land-taking projects that have stable revenues. In a prescribed urban zone, the local government shall place the farmers who are made landless because of land acquisition in the urban employment system, and set up a social insurance system for them. If the acquisition of collective land takes place outside the prescribed urban area, the local government shall set aside essential farmland within the administrative area or assign suitable jobs. Resettlement in distant areas should be considered for farmers who can no longer have adequate land to continue farming. The labor and social insurance departments shall cooperate with other relevant departments to provide guidance on the establishment of employment training and social insurance program for land-losing farmers PRC Land Administration Law 89. The Land Administration Law of the PRC was passed at the 16 th session of the Sixth Standing Committee Meeting of the National People s Congress on June 25, It was subsequently amended at the Fourth Session of the Ninth Standing Committee Meeting of the National People s Congress. The newly amended law was brought into force on January 1, 1999, according to the Decision on the Amendment to the Land Administration Law of the PRC that was adopted at the Fifth Session of the Seventh Standing Committee Meeting of the National People s Congress. 90. Article 47: Land acquired shall be compensated for on the basis of its original purpose of use. 91. Compensation for acquired cultivated land shall include compensation for land, resettlement subsidies and attachments and young crops on the acquired land. Compensation for acquisition of cultivated land shall be six (6) to ten (10) times the AAOV of the acquired land for three years preceding such acquisition. Resettlement subsidies for acquisition of cultivated land shall be calculated according to the agricultural population to be resettled. The agricultural population to be resettled shall be calculated by dividing the amount of acquired cultivated land by the average amount of the original cultivated land per person for the unit of the land is acquired. The standard resettlement subsidies to be divided among members of the agricultural population needing resettlement shall be four (4) to six (6) times the AAOV of the acquired cultivated land for three years preceding such acquisition. However, the highest resettlement subsidies for each hectare of the acquired cultivated land shall not exceed fifteen times its AAOV for the three years preceding such acquisition. 92. Standards of land compensation and resettlement subsidies for acquisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for acquisition of cultivated land. 93. Standards for compensation of attachments and young crops on the acquired land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government. 94. For acquisition of vegetable plots in city suburbs, the land users shall pay towards a development and construction fund for new vegetable plots in accordance with the relevant regulations of the State. 95. If land ccompensation and resettlement subsidies paid in accordance with the 44

45 provisions of the second paragraph of this Article are still insufficient to help the farmers needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people's governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsidies shall not exceed 30 times the AAOV of the acquired land for the three years preceding such acquisition. 45

46 6.3.3 Implementation Method of Guangxi Zhuang Autonomous Region for Land Administration Law 96. Article 7: The ownership of the state-owned and rural collective-owned land shall be determined by the Land Administration Law, the implementation regulation of the Land Administration Law and other laws and statutes. 97. Article 8: The rural collective-owned land is legally owned by the farmer's collectives and managed and administrated by the village collective economic bodies. If the village collective economic body is not complete, the villager committee shall manage and administrate the land. If the land in a village is owned by more than two rural collective economic bodies, each of the bodies or village group shall manage and administrate the land. If the land is owned by town or township, the rural collective economic bodies of the town or township shall manage and administrate the land. If the rural collective economic body of the town or township is not complete, the town or township government shall manage and administrate the land. 98. Article 21: Preparation of the yearly schedule of land use shall follow the following principle. (I) (II) (Ill) (IV) strictly follow the overall land use plan and dominate the gross land size used for construction and protect the cultivated land. Guide the land demand by land supply, and rationally and effectively utilize the land. Preference of use of land shall be given to the key capital construction projects, and the projects supported by the state industrial policies of the region and state. Protect and improve the ecological environment and the sustainable use of the land resources. 99. Article 26: The followings shall abide by in reclaiming new cultivated land in same size and quality of the cultivated land requisitioned for non-agricultural construction. (I) Within the land boundary for urban construction defined in the overall land use plan, the local city, county government shall be responsible for organizing reclamation for implementation of the planned urban construction; (II) Within the land boundary for construction of village or town facilities defined in the overall land use plan, the town or township government shall be responsible for organizing the rural collective economic bodies or the land occupying organization to reclamation for implementation of the planned construction of village or town facilities; and (IlI) For the cultivated land occupation for construction of power generating, transportation, water conservancy, mining and military facilities beyond the land boundary for urban and rural construction defined in the overall land use plan, the land occupation organization shall be responsible for reclamation of new cultivated land Article 27: For the cultivated land occupied for non-agricultural construction, the organization or individual shall pay the reclamation fee if he has no means for reclamation Article 34: The land use organization and individual shall restore the destroyed land due to excavation, collapse and occupation during production and construction according to the State's and Regional stipulations concerning reclamation of land, and in 30 days of completing such reclamation, applies to the land administrative department of local municipality, county (city) government for inspection and acceptance. In case the land use organization or individual who has not means to conduct reclamation or whose such reclamation is not in compliance to 46

47 the requirement in acceptance, he shall pay to the land administrative department of local municipality, county (city) government the land reclamation fee at a rate of CNY per square meter. The said land administrative department shall organize the land reclamation Article 45: Each rural villager's household shall have only one piece of house plot. Construction of villager's residence shall be in compliance to the overall land use plan of the town/township, and shall be in combination of the reconstruction of the old village and take full advantages of the old house plot, idle land and waste land on hills within the village. Occupation of farmland shall be strictly limited. The area of approved new house plots shall observe the following criteria: (1) size of house plot in plain and suburban areas shall not exceed 100 square meters for each household; and (2) size of house plot in uplands and hilly areas shall not exceed 150 square meters for each household. 6.4 Gaps between ADB and Chinese Policies 103. In comparing the gaps between ADB and PRC policies, Table 6-1 presents that the distinctive differences in the aspects of legal rights or property certificates, and information disclosure and consultation which are lacking in content or in time delays. 47

48 Table 6-1: Gaps between ADB and PRC Policies PRC Laws and Regulation ADB SPS 2009 Gaps, if any Gap Filling Strategy The People s Governments at the Improve, or at least restore, the There are no gaps, however the The local Government and IA county level and above should livelihoods of all displaced standards and regulations for the have complied with ADB s SPS ensure that land compensation persons through (i) land-based PRC laws and regulation related policy to draw the participation of fees, resettlement subsidies and resettlement to resettlement compensation is the APs and relevant stakeholders compensation for ground strategies when affected top-down decision making in the Project design and the RP attachments and standing crops livelihoods are land based where process, while ADB emphasizes preparation phase, including the shall be provided in accordance to possible or cash compensation at compensation should be based on determination and negotiation of applicable laws and regulation in replacement public consultation which is compensation standards as well full and in time. If the land value for land when the loss of community-based (bottom-up) as formation of income and compensation fees and land does not undermine decision making process. livelihood rehabilitation program. resettlement subsidies as livelihoods, (ii) prompt The local Government and IA will stipulated by law still cannot be replacement of assets with comply with the transparent, able to maintain the original access to assets of equal or higher consistent and equitable standards of the land-losing value, (iii) prompt compensation at procedures during the LAR farmers and are not adequate to full replacement cost for assets implementation phase. cover the social insurance costs that of the landless farmers, the cannot be restored, and (iv) provincial government shall additional revenues and services approve an increase in the through benefit sharing schemes resettlement subsidies. If the sum where possible. of the land compensation fees and resettlement subsidies has reached the legal upper limit but still cannot maintain the original living standards of the farmers, the local government can provide additional subsidies with the use of revenues from the sales for the use of state land. 48

49 PRC Laws and Regulation ADB SPS 2009 Gaps, if any Gap Filling Strategy PRC laws and regulations clearly stipulate that there is no compensation for demolishing illegal building and temporary buildings that exceed the approved period, which means beyond the expiry date certification. No provision of laws and regulations for the vulnerable groups. ADB's SPS policy requires to ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. ADB policy requires paying particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensuring their participation in consultations. According to the existing Chinese laws and regulations, no compensation will be paid to the expropriation of violated, illegal buildings and the land without property certificate. However, according to ADB s SPS policy, these APs are eligible for resettlement assistance and compensation for loss of nonland assets and rehabilitation measures. Chinese laws and regulations require giving all APs the same treatment without special consideration to vulnerable groups. ADB s SPS policy requires particular attention should be paid to the needs of vulnerable groups, including women. For the Project, the local Government and IA will protect and compensate all affecter persons regardless of whether they have property certificates, housing tenure, land use rights or lease rights in according to ADB s policy. However, any recognized illegally land developed or temporary buildings constructed after the cut-off date cannot be compensated. The issues of vulnerable groups and gender equity have been incorporated in the LAR planning by the local Government and IA. It will be continuously integrated in LAR implementation through the provision of a preferential policy to vulnerable groups in such things as compensation, MLG, employment, training without charge, provision of social safeguard program, provision of micro-credit by the local credit union or local banks with assistance of the local Government, and assistance in selection and allocation of new 49

50 Consultation service is provided in the Land Administration Law of PRC. According to the requirement of ADB for the RP preparation, the APs should be fully informed and closely consulted through meaningful consultations with affected persons, host communities, and concerned nongovernment organizations; informing all displaced persons of their entitlements and resettlement options; and ensuring their participation in planning, implementation, and monitoring and evaluation of resettlement programs. In the Land Administration Law of PRC, it provides the consultation service, but no concrete and specific clauses and procedures are provided. During actual practice, usually there is no consultation and no information disclosure until the approval of RP due to the facts that formal land acquisition and location are not finalized during the RP preparation stage and the land user is unwilling to inform the APs. However, according to ADB s SPS policy, it requires that the APs should be fully informed and closely consulted through meaningful consultations with affected persons, host communities, and concerned nongovernment organizations; informing all displaced persons of their entitlements and resettlement options; and ensuring their participation in planning, implementation, and monitoring and evaluation of resettlement programs. house and relocation. To meet the requirements of public consultation and transparency, the local Government and IA have complied with ADB s policy to conduct extensive consultations with the APs and various stakeholders, and inform them the impacts, compensation, entitlements and resettlement schemes, grievance procedures and so on during the LAR planning phase. The local Government and IA will continuously ensure the participation of the APs in the LAR implementation phase. 50

51 6.5 Compensation Criteria and Principles Entitlement 104. The Project affected persons (APs)/displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected area. All landowners and users and occupants of structures in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the types of losses and quantities who are there before the cut off date determined by Beihai Municipal Government. The cut-off date for the compensation will be announced to all APs immediately afterward, within the completion date of the construction map and investigation; any newly cultivated land, or planting of crops or trees, or structures built after the cut-off date determined by the local government will not be compensated Compensation Principles 105. The principle of the compensation and entitlements established for the Project are to: Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible; Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status Compensation Rate Permanent Land Acquisition 106. According to Unified Standard of Annual Output Value issued by the people's Government of Beihai, it has been carried out since 31 st January, Compensation for collective-owned land will be compensation with different types of land. The compensation standards for the loss of different types of land are presented in Table 6-2a and Table 6-2b. As the APs do not want to engage in agricultural farming any more, thus, they are willing to give their land for the Project construction and get cash compensation to be used of the development of tertiary industry. Table 6-2a: Compensation for Collective Land Unified Standard of Standard Of Annual Output Compensation Township Compensation By Value By Region Multiplier by Region Region (CNY/Mu) (CNY/Mu) Yinpan Township 1, ,600 51

52 Table 6-2b: Multiplier and Compensation Rate of Land Acquisition Unit: CNY / mu Land Compensation + Resettlement Standing Crops Compensation Rate Subsidy Type of Land Production Value (CNY/Mu) Multiplier Amount (CNY/Mu) Multiplier Amount (CNY/Mu) Multiplier Amount (CNY/Mu) Collective-Owned Land Dryland 1, , , ,230 Paddy Land Grass Land Wood Land Fish Pond River Body Existing Old Road Other Land 1, , , ,230 32,600 32,600 1, , , ,230 32,600 32,600 32, Temporary Land Occupation 107. The temporary land occupation of the Project is collective land. The compensation for the standing crops loss of temporary land occupation of the Project is based on the calculation of the average annual output of last three years AAOV, which will be paid to the APs is presented in Table 6-3. As the construction will be carried out section by section, thus temporary land occupation will be taken for maximum of one year. The compensation rates for the standing crop loss to be paid to the farmers cover one year crop loss, which is sufficient to the APs. The compensation for the land recovery will be paid to the contractors to be used to rehabilitate the land into its original conditions. Table 6-3: Temporary Land Occupation Compensation Standard Serial No. Land Type Unit Compensation Standard (CNY) 1 Dryland mu 2, Grass Land mu 2, Wood Land mu 2, Waste Land mu 1, River Body mu 2, House Plot mu 2, Demolishment of Residential Structures 108. For the lost residential house structures, the compensation rates are presented in Table 6-4. The compensation for residential houses will be paid to the APs. Relocation allowance will be provided to the APs at the rate of CNY 8/m 2, and each AP will be provided with temporary transit allowance at the rate of CNY 8/m 2 for a total of 12 months at maximum. The compensation for lost of working days is CNY 300 per household. If the affected households signed an agreement on time, each household will receive CNY 5,000 as award for timely signing the agreement. As the 52

53 APs will not move until their new houses are built, and the relocation will only take about 2 or 3 days, the relocation allowance should be sufficient. Table 6-4: Compensation Rates of Residential House Demolition Unit Compensation Standard (CNY) Private Residential Structure Brick-Concrete M Brick-Wood M Simple Structure M Relocation Allowance Relocation subsidies M 2 8 Temporary transit allowance m months 4,000 Lost of working days due to 300 relocation HH Timely signing agreesment award HH 5, Ground Attachments 109. All affected ground attachments will be compensated at replacement rate to reflect the current value. The compensation of structures and other facilities will be based on the standard of Regulations [2009] No. 52 issued by Guangxi DRC. Table 6-5 provides the compensation standards of the ground attachments. Table 6-5: Compensation Standards of Ground Attachments Items Unit Compensation Standard (CNY) Fenced Wall m Well No Water Tower of Beihai Pearl Cultivation Farm No. 5, V Power Line m 3.00 Coment Power Pole No Special Policy for Vulnerable Group 110. The needs and interests of vulnerable groups, special attention will be given to them, particularly the potential difficulties faced by vulnerable people in affected areas in resettlement planning and implementation. The PMO and IA will supervise implementation to ensure these vulnerable persons receive adequate compensation, house allocation, social security plan, special fund and MLG. Assistances on training with free charge, employment, and micro-credit will be provided to them by the BMG, PMO and IA to restore their living conditions and incomes. During resettlement phase, the women-headed households and disabled and elderly people will be given priority to choose the allocation of reconstruction house land within the same villages, select houses and floors in the resettlement site, and assistance on house construction and relocation as well as provision of labor and transportation assistance without charge. Based on special circumstance and assessment, provision of certain cash support for these households in difficult situation might be considered. However, it will be determined during the actual LAR implementation period. 53

54 VII. ENTITLEMENT MATRIX 111. From the results of inventory surveys, the major impacts of LAR have been identified based on the nature of losses, and an Entitlement Matrix has been prepared as a guide to compensation payments. The cut-off date will be determined by BMG in collaboration with relevant organizations involved, including PMO, IA, BLRB, BHDAO, and district government. Illegal land-use, construction of temporary structures will not be compensated after the notification of cut-off date. BMG, IA, BLRB and BHDAO could take photos/video of the places on the cut-off date to prevent further influx beyond the cut-off date. BMG will publicize the cut-off date on newspaper of Beihai Daily and community/village bulletin board once the date is decided. The cut-off date will usually be upon the completion of DMS. The compensation will be made in the forms of cash for land loss, and cash plus reconstruction house plot within the same villages or cash plus resettlement house in resettlement site for structure compensation. The relocated households will get relocation allowance and temporary transit allowance. The compensation will be in cash. Table 7-1 presents the entitlement matrix. As no farmland will be re-allocated, the compensation for the collective land loss will be fully paid to the affected households. 54

55 Table 7-1: Entitlement Matrix Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Agency Responsible Permanent land mu collective-owned Cash will be provided to all APs PMO, acquisition land will be acquired affected by permanent land BRPCIDCL,Tieshan (78 rural households and 324 rural populations) permanently for the Project, acquisition of dryland, paddy land, fish pond, grass land, wood land and homestead. Port District Government, Yinpan Township Government, BLRB, RC/ VCs, and RO Temporary Land Occupation (114 AHs or 467 including mu in Yinpan Resident Committee (33.37 mu dryland, mu paddy land, 1.48 mu grass land, 2.45 mu wood land, mu fish pond, mu river body, 0.78 mu existing old road and mu other land); mu in Binban Village (57.76 mu dryland, 0.26 mu paddy land, 3.25 mu grass land, mu wood land, 2.52 mu existing old road, and mu other land); mu in Huangshao Village (29.75 mu dryland, 2.22 mu wood land, 6.55 mu waste land, 1.36 mu fish pond, and mu other land); mu in Baidong Village (38.31 mu dryland, 6.83 mu wood land, and 1.20 mu other land); mu in Bintang Village ( mu dry land, mu grass land, mu wood land, mu waste land, mu fish pond, 2.72 mu existing old road, and mu other land). A total of mu and rural collective land will be occupied, including mu in Yinpan Compensation for the permanent rural collective land acquisition will be paid to the affected households directly. Cash compensation will be provided to the affected RC/VCs for the permanent land acquisition of waste land, river body, and old road and village roads. Cash compensation will be paid to the affecter persons directly by for standing crop compensation. Compensation rate of land loss for dryland, paddy land, fish pond, grass land, wood land and homestead to the APs: Yinpan township: CNY 32,600/mu for land compensation and resettlement sunsidy; CNY 1,630/mu for standing crop compensation at market replacement value and all of them will be paid to the individuals. Compensation rate of land loss for waste land, river body, old road and village roads to the APs: Yinpan township: CNY 32,600/mu for land compensation and resettlement subsidy. Compensation standards to the farmers for the loss of standing crops: CNY 2,533 / mu for dryland; CNY PMO, BRPCIDCL BLRB, and RO 55

56 Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Agency Responsible APs) Resident Committee (10.97 mu dry land, 1.56 mu grass land, mu wood land, 0.60 mu house plot); 32.6 mu in Binban Village (5.80 mu dryland, 7.37 mu grass land, mu wood land, 2.88 mu waste land and 3.3 mu river body); mu in Huangshao Village (9.11 mu dryland, mu wood land, 2.78 mu waste land); 5.89 mu in Land reclamation fees shall be paid by contractors, and it will be included in the construction engineering costs. 2,533 / mu for wood land; CNY 1,000 / mu for waste land; CNY 2,533 / mu for river body; CNY 2,533 / mu for house plot. After temporary land use, the land will be restored by the APs to original condition and keep the same quality. The land recovery cost is included in the engineering cost of the Project. Baidong Village (3.78 mu dryland, 2.11 mu wood land); mu in Bintang Village (0.89 mu dryland, mu wood land, and 3.21 mu waste land). Residential structures (78 households or 324 rural populations). A total of 6, m 2 residential structures will be demolished, including 4, m 2 brick-concrete, 1,623.37m 2 brick-wood, and m 2 simple structures. All affected APs will be provided with cash plus reconstruction house plot within the same villages or cash plus resettlement houses in centralized resettlement site. The cut-off date will be determined by BMG in collaboration with relevant organizations involved, including PMO, IA, BLRB, BHDAO, and district government. Illegal land-use, construction of temporary structures will not be compensated after the notification of cut-off date. BMG, IA, BLRB and BHDAO could take photos/video of the places on the Compensation for the affected structures at full replacement costs of materials and labors with no deduction for depreciation or salvageable materials. The standard for the allocation of the reconstruction house plot is 25 m 2 / capita for those to be relocated within the same villages. For those households with 3 persons or less than 3 persons, allocation of 80 m 2 house plot could be provided with approval, but the APs need to pay for the area exceeding 25 m 2 /capita as the land development cost at CNY PMO, BRPCIDCL, RO, BLRB, BHDAO, Tieshan Port District Government, Yinpan Township Government, BLRB, RC/VCs, and RO 56

57 Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Agency Responsible cut-off date to prevent further influx 1,500/m 2. For those households beyond the cut-off date. BMG will whose house plot allocation is less publicize the cut-off date on than 25 m 2 /capita, the area which is newspaper of Beihai Dairy and community / village bulletin board once the date is decided. not requested will be compensated at CNY 1,500/m 2. The new housing land will come from house reconstruction land of the respective village. Relocation allowance and temporary transit allowance in cash will be provided to the APs The compensation standards for structures are: CNY 720/m 2 for brick-concrete, CNY 500/m 2 for brick-wood, CNY 230/m 2 for simple structures. Ground Attachments 20 m 2 of fenced aall, 2 wells, 1 water tower for Hepu County Pearl Cultivation Farm, 230 m 220v power lines, and 2 cement power poles. All Affecter persons or owners will get equivalent amount of cash compensation Relocation allowance will be provided to the APs at the rate of CNY 8/m 2, and APs will be provided with temporary transit allowance at the rate of CNY CNY 8/m 2 for a total of 12 months. The compensation for lost of working days is CNY 300 per household. If the affected households signed an agreement on time, each household will receive CNY 5,000 as award for timely signing the agreement. Cash compensation will be paid to all affecter persons or owners: CNY 60 / m 2 for fenced wall, CNY 180 / each for well, CNY 5,000 / each for water tower, CNY 3 / m for 220v power lines, and CNY 250 / each for cement power poles. PMO, BRPCIDCL, RO, BLRB, BHDAO, Tieshan Port District Government, Yinpan Township Government, RC/VCs, and RO 57

58 VIII RESETTLEMENT AND REHABILITATON PLAN 8.1 Objectives and Principles of Resettlement Program 112. The overall objectives of the resettlement program are for the affecter persons to be offered with livelihood opportunities, for the labor force to be resettled properly, and for the living and production conditions of the APs to be improved or at least not worse-off than before the Project. The basic principles of the resettlement and rehabilitation plan are as follows: i) Compensation should be paid in cash for the land loss families, and cash plus reconstruction house plot within the same villages or cash plus resettlement houses in centralized resettlement site for relocated families; ii) Development resettlement is promoted. The livelihood rehabilitation plan will be based on the provision of: a) various employment and income generation opportunities during the Project construction and operation phases; b) development of self-employed tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment, food catering and hotel services, and tourism); c) provision of technical training to the APs to increase their skills to be employed in other institutions and enterprises, and d) provision of social insurance to the APs; iii) Implement the resettlement program properly, comply with related compensation policies, and ensure that the production and living conditions of the affecter persons are increased or at least restored; iv) The resettlement plan should be prepared and implemented in accordance with state s land rehabilitation policy, national economic and social development plans. The needs and interests of state, collectives and individuals should be fully and equally taken into consideration; v) The APs should be consulted for the development of the resettlement plan and for the compensation rates; and vi) Women s rights and interests should be fully taken into consideration of the Project. 8.2 Compensation and Rehabilitation Resettlement Plan Resettlement Options and Plan Residential houses 113. The Project will relocate 78 households and 324 persons. A total of 6, m 2 structures will be demolished. To maintain the social network of the APs, to keep their original living and work continuity, the compensation will be provided based on the BMG policies and regulations: cash plus reconstruction house plot within the same villages or cash plus resettlement houses in centralized resettlement site. Other auxiliaries will be compensated at replacement value in cash. The APs will be resettled close to their original houses in the same villages or resettlement site nearby as much as possible Table 8-1a and Table 8-1b provide the summary resettlement choices preferred by the affected households. According to the latest field survey, of the total 78 households, 43.59% or 34 households would like to choose cash plus reconstruction house plot within the same villages or cash plus resettlement houses in resettlement site compensation. Most of the affected households (56.41% or 44 households) would like to move to the centralized Binjiang Resettlement Site of Tieshan Port Industrial Zone. The choice of the area adjacent to their original residence area will keep the original life style and production and maintain the original social relations of the APs. The Bingjiang Resettlement Site ranges from 0.1 km to 7.5 km from the existing houses. The households close to the Bingjiang Resettlement Site will choose to move there. 58

59 Table 8-1a: Resettlement Choices of the Affected Households Resettlement Choices of the Affected Persons (No.) Total AHs Reconstruction House Plot + Resettlement Houses in Cash Resettlement Site + Cash Total % 100% 43.59% 56.41% Private Structure Table 8-1b: Resettlement Sites Selected by the Affected Households Resettlement Choices of the Affected Persons (No.) RC/VCs Close to Original Binjiang Total Households Place Resettlement Site Yinpan Binban Huangsha o Baidong Bintang Total % 100% 95% 5% Resettlement Plan for Households by Residential Structure Demolishment 115. In order to fully take into account the wishes of the affected persons, BMG has preliminarily planned the resettlement scheme of new house construction within the same villages for Yinpan Resident Committee, Binban Village and Baidong Village based on the consultation of BMGand the comprehensive comments of the APs. The reconstruction house plot standard is 25 m 2 per capita. The households to be relocated in Huangshao Village and Bintang Village will be moved to the Binjiang Resettlement Site of Tieshan Port Industrial Zone. The BMG will be responsible for the three supplies and one leveling of the resettlement site, namely water, electricity and road access and land leveling. The cost will be covered by the infrastructure construction budget of the Tieshan Port District Government. Thus, all the 34 households will be connected with related facilities and infrastructures. The standard for the allocation of the reconstruction house plot is 25 m 2 / capita for those to be relocated within the same villages. For those households with 3 persons or less than 3 persons, allocation of 80 m 2 house plot could be provided with approval, but the APs need to pay for the area exceeding 25 m 2 /capita as the land development cost at CNY 1,500/m 2. For those households whose house plot allocation is less than 25 m 2 /capita, the area which is not requested will be compensated at CNY 1,500/m 2. The new housing land will come from house reconstruction land of the respective village. The residential houses will be compensated at replacement value to make sure that the APs could reconstruct or purchase their houses. Table 8-1b provides the resettlement plan of the affected households. The IA and local government will assist the APs on the selection and allocation of reconstruction house land, new house construction and relocation Binjiang Centralized Resettlement Site of Tieshan Port Industrial Zone is located in the Yinpan Township of Tieshan Port Industrial Zone, with roads surrounded around and convenient transportation. The total land area is 266, m 2 ( mu), including 163, m 2 living space, 191, m 2 construction area. The land was acquired over 10 years ago and the resettlement site is established community and Phase II within the land is under construction. The 59

60 housing in the resettlement site includes multi-storey buildings, with a total of 26 buildings, and 75 siamese small houses. The community has activity center, kindergarten, business clusters, community center recreational greening, power distribution house and other facilities. Along the planned urban road, multi-storey buildings are designed, with the first floor served as shops, two to six floors as commercial and residential houses, with a total of 698 sets: siamese small houses have A, B, and C three types with three floors and partially four floors. All the entrance of the houses is separated doors. The area of the houses includes 30 m 2, 60 m 2, 80 m 2 and 100 m Of the total relocated households, 31 households who are rich or better-off families among the affected families would like to purchase commercial houses. Their annual family income is around CNY 33,000. The compensation for houses totals at CNY million with average compensation rate at CNY 56,650. If the price of commercial houses is CNY 1,500/m 2 and they intend to buy houses with 100 m 2, each household needs to pay CNY 150,000 at average for the houses. They will use CNY 50,000 compensation money as down payment and take 15 years mortgage loan for remaining cost of CNY 100,000. Thus they need to pay CNY 600 per month as mortgage payment to the banks. It is affordable for them. Therefore they are satisfied with compensation rate. After relocation, the living environment of the APs will be increased significantly. The area of their new houses will be the same size or bigger size than before, with better quality For the 13 households who would like to purchase economy houses, the current price for economy houses is 1,000/m 2. Their annual family income is around CNY 19,000. The compensation for houses totals at CNY million with average compensation rate at CNY 56,650. If the price of economy houses is CNY 1,000/m 2 and they intend to buy houses with 100 m 2, each household needs to pay CNY 100,000 at average for the houses. They will use CNY 50,000 compensation money as down payment and take 15 years mortgage loan for remaining cost of CNY 50,000. Thus they need to pay CNY 300 per month as mortgage payment to the banks. It is affordable for them. The IA will ensure that the relocated families will not be moved until the new houses are constructed Beihai Municipal Government will be responsible for the measurement of ground-based reference, road construction, water and power supplies of the resettlement site. The resettlement site will be facilitied with better social services and basic infrastructures, such as hospital, financing services, commercial service, public transportation, schools, entertainment, etc During the resettlement process of the land acquisition and structure demolishment, some incentive measures and preferential policy will be adopted by the Project, such as for the early signing of compensation agreement within 30 days after the publicizing demolishment. A reward will be given to the APs. As for the APs who sign the resettlement and compensation agreement after the publicizing of relocation and have moved out, they will be provided with CNY 5,000 per household as award. For those relocated families who complete their house construction according to the plan within the regulated time period, an award of CNY 5,000 per household will be provided For safety reason, the demolition of the structures can not be carried out by the resettlers themselves. It should be demolished by the qualified house demolishment agency. However, the materials such as doors and windows can be disposed and re-used by the households themselves. The APs can sale the 60

61 salvageable materials to make some money For the demolished houses which have already had the relevant property certificates, it is the responsibility of the demolishment agency to process the relevant certificates from relevant municipal departments. The costs will be covered by the demolishment agency, and the new houses will be legitimized Relocation allowance of CNY 8/m 2 will be provided to each affected household, temporary transit allowance of CNY 8/m 2 will be provided to the APs, totaling 12 months, and also allowance for the lost of working days at CNY 300 per household. For each relocated family, they will get CNY 8,812 in total for the average loss of 78 m 2 residential structures (including relocation allowance, temporary transit allowance, and allowance for the lost of working days). For their moving, it will take about only one to two days, the productive income loss is about CNY 32, plus transportation rental cost at about CNY100/day. Thus, the relocation allowance is sufficient. The APs will not be moved after the new houses are built, the relocation will only take a couple of days, thus the temporary transit allowance is adequate. The APs will benefit from the temporary transit allowance provision if they could move into their new houses timely Rehabilitation Plan for Affected Households by Land Acquisition 124. The construction of urban road network project will permanently acquire mu of collective land, and affect 78 households or 324 persons in 1 RC and 4 villages. The proportion of land to be acquired only account for small proportion (1.85%) of the resident community and rural collective land, the impact of land acquisition to the resident community and rural collective is relatively small. However, the land to be acquired for the Project accounts for 30.99% of the total farmland area and 9.48% or CNY 2,270 of the family income for the APs. The impact of the land acquisition to the affected households is significant in terms of farmland area, but less significant in terms of family income share. As the affected area is getting industrialized and urbanized, the local people are not relying on the farmland for their livelihood with increasing number of people are engaging in service industry, seasonable labor and in enterprises. The affected Project area is getting urbanized. After land acquisition, no allocation of land will be made in the affect RC/VCs. All compensation for permanent land acquisition of dryland, paddy land, fish pond, grass land, wood land and homestead will be directly paid to the APs, with a total of CNY million, with average of CNY 217,850 per household. The affected families will use the compensation payment for the development of tertiary industry, improvement of land production conditions and cultivation of economic crops to increase the agricultural income. In addition, the local government will follow the regulation of Temporary Method of Social Insurance for the Farmers Whose Land Acquired in Beihai City to solve the future livelihood of the farmers The overall objective of income rehabilitation plan is to ensure that all APs losing their means of livelihood (in this case their land or working place) to the Project are able to at least maintain their pre-project levels of income and living standards. The income restoration plan applies to all 78 affected families in Yinpan Community, Binban Village, Huangshao Village, Baidong Village and Bintang Village The household survey indicates that 9.34% of their income comes from agricultural activity in Yinpan Resident Community, 23.15% in Binban Village, 23.13% in Huangshao Village, 23.26% in Baidong Village, and 49.85% in Bintang Village. The associated income loss of the APs is 9.48% of their total family income or CNY 2,270 per household per year, see Table 8-3 for the income loss Analysis. Thereby the loss 61

62 caused by land acquisition is small. Table 8-3: Income Loss Analysis of Permanent Land Acquisition for the AHs RC/VCs Annual Total Total Annual HH Incom Area of Area of Farmlan Farmlan HH Income e Loss Farmlan Farmlan d Loss d Loss Income before Ratio d before d after (mu) Ratio (%) Loss LA (%) LA (mu) LA (mu) (CNY) (CNY) Yinpan , , % 43.91% 0 7 Binban , , % 39.11% 0 4 Huangsha , % % o 0 Baidong , , % 37.98% 0 3 Bintang , , % 24.49% 0 3 Total 1, % 23, , % 127. The land loss will result in the livelihood loss of a family. Of the total 78 affected households and 324 persons to be affected by permanent land acquisition of the Project, 204 persons are in labor force who need income rehabilitation. At the time to acquire the land from the farmers, the future livelihood of the farmers should be also considered. According to the result of the surveys and consultation, the farmers do not want to engage in agricultural activities any more, and would like BMG provide them with employment opportunities and technical training assistance, and also business support The following income rehabilitation measures are recommended to be carried out to improve their income: i) providing technical skill training and employment opportunities to the APs, especially for the job requiring large amount of labor forces; ii) development of service industry, such as clothing store, grocery store, food catering service, hairdressing salon, dry cleaning, motorcycle transportation service in urban districts, taxi service, food and entertainment service, hotel service, tourism business, and other businesses; iii) provision of social and medical insurance; iv) providing employment opportunities generated by the construction and operation of the project (urban sanitation worker, enterprise employee, maintain security, etc.). The urbanization brings new ideas, notion, better living environment and job opportunities for the local farmers, hence they can start commercial activities The compensation for the permanent land acquisition of dryland, paddy land, fish pond, grass land, wood land and homestead will be paid directly to the APs at the amount of CNY million, with average of CNY 217,850 per household. The APs could use the compensation payment for other tertiary industry development to increase their income and improve their livelihood. In comparison with their average annual household income at over CNY 50,000 to after land acquisition and at CNY 23,975 before land acquisition, thus we could say that the APs will significantly benefit from the land acquisition. According to the survey conducted among the APs, about 10% of affected males and 30% affected females prefer to get reserved development land which means reconstruction land to be developed by the collective or groups for commercial profit making, in turn the APs could gain dividend income. However, Beihai City has not implemented such measure or practice so far. With education efforts by the local government and influence of other APs, now 100% or 204 APs in 62

63 labor force are willing to use the compensation payment as seed money to develop the tertiary industries. All APs will have sufficient fund for the development of the tertiary industry as they get high compensation payment from land. Women are more suitable for the above-mentioned employment and income generating opportunities. Actually they account for about 48.15% or 98 labor force, they will benefit the same from the income rehabilitation program as men. After the affected villagers get their compensation payment, they will be engaged in the new businesses in Tieshan Port District and the fishery port zone. During the arrangement of new employment opportunities, BMG pays great attention to the production resettlement of the affected women, especially the establishment of business for hairdressing salon, grocery store, food catering service, laundry, transportation, handicraft workshop, sales of tourism products, etc. which are very suitable for the employment of women Based on the socioeconomic survey and discussion/consultation results with the APs, the affected households who need livelihood rehabilitation will set up grocery store (11 households/ 46 APs), food catering service (13 households/ 53 APs), hairdressing salon (7 households/ 29 persons), dry cleaning (10 households/ 41 APs), motorcycle transportation service for urban districts (15 households/ 63 APs), clothing shop (13 households/ 54 APs), and tourism products sales (9 households/ 38 persons) to rehabilitate the loss of income from agricultural farming. Since the APs will be receiving a sum of compensation at over CNY 363,710 per household on an average, the amount is sufficient for them to start a new business. The APs will use the compensation payment to establish their new business which is expected to take about two to six months. The income of the APs to be generated from the new businesses could be stabilized two months after the opening of the businesses. They will use CNY 10,000 to CNY 50,000 of their compensation payment to invest in their new businesses and the remaining fund will be used for improving their living conditions, deposit into bank for monthly interest, buying social insurance and circulating fund or for education of their children. Table 8-4 provides the income, compensation received and income rehabilitation measures of the affected households. Based on the detailed measurement survey, the following information will be updated and will be represented at the household level. Table 8-5 provides the input and output for each scheme which demonstrate that they will benefit from the rehabilitation measures with increased income than before. Based on the detailed measurement survey, the following information will be updated and will be represented at the household level Table 8-4: Income, Compensation Received and Rehabilitation Measures of AHs Current Compensation RC/VCs Annual Received for Income Land Loss Rehabilitation Measures (CNY) (CNY) Yinpan 518,672 3,989, HHs: Grocery store (2 HHs), hairdressing salon (1 HH), food catering service (2 HHs), laundry (2 HHs), transportation service (2 HHs), clothing shop (2 HHs), sales of tourism products and relevant sector (3 HHs). Binban 419,783 2,555, HHs: grocery store (2 HHs), hairdressing salon (2 HHs), food catering service (2 HHs), laundery (2 HHs), transportation service (3 HHs), clothing shop (1 HH), sales of tourism products and relevant sector (1 HH). Huangshao 115,137 1,192, HHs: grocery store (1 HH), hairdressing salon (1 HH), food catering service (3 HHs), laundry (2 HHs), transportation service (1 HH),, sales of 63

64 RC/VCs Current Annual Income (CNY) Compensation Received for Land Loss (CNY) Baidong 143,395 1,573, Bintang 673,120 7,681, Total 1,870,100 16,991, Rehabilitation Measures tourist products (1 HH) 7 HHs: grocery store (1 HH), hairdressing salon (1 HH), food catering service (2 HHs), laundry (1 HH), transportation service (2 HHs), 35 HHs: grocery store (5 HHs), hairdressing salon (2 HHs), food catering service (4 HHs), laundry (3 HHs), transportation service (7 HHs), clothing shop (10 HHs), sales of tourist products (4 HHs) 132. For the grocery store, the initial investment for each business establishment is CNY 30,000, of which CNY 10,000 is used for annual space rental cost and CNY 20,000 for purchase of goods. It is expected that the number of customers will be about 50 persons per day and the average expense is CNY 16.0/day. As a result, the annual gross income is CNY 146,000. With deduction of the total annual expenditure of water and electricity bills at CNY 6,000 (equivalent to CNY 500/month), employees salary at CNY 9,600 (one employee), various business taxes and other costs at CNY 10,000 and investment at CNY 40,000, it is expected that the annual net income is CNY 70,800 (CNY 5,900 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme For the food catering service (regular fast food and rice noodle house) employment option, the total initial investment is CNY 30,000, of which CNY 20,000 is used for annual space rental cost (if shop owner, the rental cost will be the investment cost), CNY 6,000 for purchase of equipments, and CNY 4,000 for circulating fund. The estimated number of customers is 80 persons and the average expense of the business is CNY 7.0 per customer or CNY 560 per day. As a result, the total annual gross income is CNY 102,000. With deduction of the annual total expenditure at CNY 30,000, employees salary at CNY 9,600 (one employee), CNY 9,600 as water and electricity charge (CNY 800 per month equivalent), CNY 10,000 as various business taxes and other costs (CNY 840 per month equivalent), the annual net income will be CNY 43,000 (CNY 3,580 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme Since the APs will be receiving a sum of compensation at CNY 217,850 per household at an average from compensation for land loss. The amount is sufficient for them to start a new business For the motorcycle transportation service option, the total initial investment required is CNY 12,000, of which CNY 9,000 is used for the purchase of motorcycle and CNY 3,000 for the cost of the business charge. The estimated passengers are 30 persons everyday. The transportation price is set at CNY 5.00 per person. The total annual gross income will be CNY 54,750. With the deduction of total annual expenditure at CNY 21,900 including CNY 3,000 as annual management charge, CNY 18,000 as gasoline consumed, and CNY 900 as depreciation of vehicle, the annual net income will be CNY 32,850 (CNY 2,740 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation 64

65 payment will be more than sufficient for them to invest in the scheme For hairdressing salon, the total initial investment is CNY 30,000, including CNY 10,000 as annual space rental cost, CNY 6,000 as purchase of equipments, CNY 10,000 as decoration and 4,000 as circulating fund. It is estimated that 15 customers per day. The average gross profit is CNY 15 for each client. As a result, the annual gross income is CNY 82,125. With deduction of total investment and other expenditures at CNY 30,000, water and electricity fee at CNY 7,200 (i.e. CNY 600 per month equivalent), employee s salary at CNY 9,600 (one employee), and various business taxes and other costs at CNY 8,000, the annual net income is expected at CNY 27,325 (CNY 2,280 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme. All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme For laundry, the total initial investment is CNY 40,000, including CNY 10,000 as annual space rental cost, CNY 30,000 as purchase of equipments. It is estimated that 17 clients everyday. The average gross profit is CNY 20. As a result, the annual gross income is CNY 124,100. With deduction of total investment and other expenditures at CNY 40,000, one employee s salary at CNY 9,600, water and electricity fee at CNY 15,000 (i.e. CNY 1,300 per month equivalent), and various business taxes and other costs at CNY 8,000 (equivalent as CNY 660 per month), the annual net income is expected at CNY 51,500 (CNY 4,290 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme For retail clothing shop (middle level) option, the total initial investment is CNY 24,000, including CNY 16,000 as annual space rental cost, CNY 8,000 as purchase of clothing. It is estimated that 20 clothes will be sold everyday. The average gross profit is CNY 12. As a result, the annual gross income is CNY 87,600. With deduction of total investment and other expenditures at CNY 24,000, one employee s salary at CNY 9,600, and various business taxes and other costs at CNY 6,000, the annual net income is expected at CNY 48,000 (CNY 4,000 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme For those who choose to be engaged in sales of tourism products and tourism service in the tourism development zone, their personal investment ranges from CNY 10,000 to CNY 60,000. If the APs engage in regular sales of tourism products or tourism service, the investment is relatively less. However, due to the large floating population in tourism areas of Tieshan Port District and Fishery Port Zone, the profits could be more substantial. If the APs engage in high-class tourism products and services, the investment will be relatively large, but the revenue will also be significant, with bigger risks of course. For the initial stage of the business, the government should guide the APs to be conduct investment analysis to reduce risks For the above tertiary industry development as livelihood rehabilitation measures, the APs could use the compensation of land loss as initial investment. As each household could get compensation for land loss families, it is adequate for them to invest in their new businesses. The above measures will be updated and presented at the household level based on the DMS. The affected area will be urbanized, the above service businesses are also in great demand. With proper guidance and assistance by the Tieshan Port District Government, it is expected that the APs will successfully establish their businesses. 65

66 141. In order to restore their livelihoods and income of the APs, BMG will work with relevant departments, owners of enterprises, Labor and Social Security Bureau, and district government to make the necessary arrangements to ensure that those affecter persons who could find the jobs or assist the APs to engage in the tertiary industries as presented in Table 8-5. Table 8-5: Engagement of the APs in Tertiary Industries Initial No. of AHs (APs) Investment to Be Engaged (CNY) Type of Business Expected Net Income (CNY/Year) Grocery Store 11 (46) 30,000 70,800 Food catering service 13 (53) 30,000 43,000 Hair cut saloon 7 (29) 30,000 27,325 Laundery 10 (41) 40,000 51,500 Transportation service 15 (63) 12,000 32,850 Clothing shop 13 (54) 24,000 48,000 Sales of Tourism products and relevant sector 9 (38) 10,000 60,000 40, ,000 TOTAL 78 (324) 24,900-27,700 55,200-59, For the people who will lose their land temporarily, crops compensation will be paid directly to affecter persons in cash. As the land will be temporarily occupied section by section for a maximum of one year period, the compensation for one year standing crops loss paid to the APs will be sufficient. The land restoring fee included in the construction engineering cost will be paid to the contractors to restor the land to its original condition and keep the same quality as before. The Project IA will take the responsibility to ensure that the fund for such measures will be taken to restore the land into its original conditions by the contractors. The Project construction will generate 1,260 person-years short-term employment opportunities to the local community people, including the APs. The APs will be given priority to be employed during the 20 months project construction with income earnings at over CNY 1,500 per month if they prefer to take the jobs. In comparison with the income loss due to temporary land occupation at CNY 2,533 per year per person, thus we could see that the APs will gain at least CNY 15,467 per person per year during the Project construction period. It is expected that the temporary income loss can be sufficiently offset by the income earnings from the employment generation Employment Opportunities Generated by the Project 143. With the implementation of the Beiahi City Yingpan Urban Road and Related Municipal Infrastructure Component, will speed up the urban infrastructure construction and is conducive to the development of tourism industry in Beihai City. The Project could also stimulate the flow of people and goods, and promote the local economic development. In addition, Beihai Fishery Port Zone will create tremendous employment opportunities to the local residents. The employment priority will be given to the affected labor force. Table 8-6 provides the annual job opportunities and estimated salary of the potential job positions in next five years. The BMG will coordinate with relevant departments, including the owners of the job positions, labor and social security bureau and district government to arrange the APs to be employed for these job positions if any AP is willing to take the positions. For the 204 persons in labor force to be affected, the APs will get employment before or immediately after they lose their land. The government will assign the quotas to the owners of the 66

67 job positions to ensure that the APs will be able to secure such jobs. In comparison with their income from agricultural farming before land acquisition, the income of the APs from the jobs available in Table 8-6 will be much higher than before land acquisition. Ethnic Minority households will also be given preference in jobs in construction and maintenance activities of the Project. Table 8-6: Annual Job Opportunities Created by the Project & Fishery Port Zone Average Monthly Annual Job Income Annual Income Type of Job Remark Opportunities Earning Earning (CNY) (No.) (CNY) Fish Fish cultivation farm, Cultivation, 10,000 1,500 4,000 18,000 36,000 harvesting and Harvetsing & processing plant. Processing Construction Mainly for the house and indoor 2,000 1,500 4,000 18,000 36,000 construction and decoration road construction Job opportunities Temporary workers during the Project construction 3,000 1,200 1,500 14,400 18,000 Sales person 600 1,500 2,000 18,000 24,000 Transportation 400 2,500 3,000 30,000 36,000 Service 1,500 1,000-1,500 10,800-18,600 Office staffs 500 1,000-2,000 12,000-24,000 Other commercial business Total 21, Social Insurance 3,000 1,500-3,000 18,000-36,000 during the Project construction phase include security guard on site, porters, construction workers, etc. Mainly shops within the city or along the street, real estate sales person, and shopping plaza sales persons Passenger transport and cargo transport in Fangchenggang City, and taxi drivers. Food and catering service, hotel, and domestic house keeping Secretaries of corporate and enterprises Beauty and hairdressing salon, clothes, grocery, maintenance, etc In addition to the above proposed income rehabilitation measures, Beihai City Government will provide social security system for rural APs in terms of social pension insurance, medical insurance and employment insurance to ensure the livelihood of the APs. The Guangxi Zhuang Autonomous Region Government issued Method on Implementing Social Security System for Rural APs in Guangxi Zhuang Autonomous Region (Trial) in March Based on the document, Beihai City Government has issued Method on Implementing Social Security System for Rural APs in Beihai City, 67

68 which states clearly on issues relating to the social pension insurance, medical insurance and employment insurance for rural APs whose land is acquired. For the social insurance, 30% contribution will come from the local government and 70% from rural collective and farmers (The land loss farmers pay 20% based on the 40% of the average wage of the urban workers in last year). All APs would like to pay for the social insurance as it will ensure their livelihood for their whole life in future In light with the Method, the social insurance fund for rural APs will be raised from APs, collective and local government, among which the percentage contributed by APs and collective will be no more than 70% and the percentage contributed by local government will be no less than 30%. The contribution of APs and collective mainly comes from land compensation payment. The contribution of local government comes from income generated from the state-owned land use rights transfer. Rural APs who participate in the social insurance and perform the obligation of payment will enjoy pension per month over the age of 60. Based on the survey, the majority of the APs are willing to participate in social insurance program. As no formal calculation formula and documents are available, the exact amount to be contributed by the APs to the social insurance program, and the amount of pension to be received by the APs will be calculated based on the specific cases of the APs by the social insurance agencies during the RP implementation The rural APs will be covered by the local medical care insurance according to the residence management principle. The rural APs whose registration has been changed to unemployed urban residents will be covered by urban residents basic medical care insurance. The rural APs whose registration remains the same as before will be covered by new-type cooperative medical care system. Migrant workers who are still registered as rural residents as well as urban employers who are registered as urban residents will be covered by urban residents basic medical care insurance. Self-employed will also be covered by urban residents basic medical care insurance. Furthermore, APs who live under the urban residents MLG or rural poverty MLG will be covered by local urban residents MLG scheme or rural poverty MLG scheme, respectively Project Related Income Generation Opportunities 147. During the Project construction phase, APs can seek some income generation opportunities, mainly providing services related to the Project construction, such as renting spare houses (if available) to the construction contractors as temporary office or to the construction workers as residence, operating grocery kiosks, and providing food, cigarettes and breweries to the construction teams. Also during the construction period, the PMO and IA will offer 1,260 person-years or 15,120 person-months or 3.78 million days temporary unskilled employment job opportunities to the APs, such as excavation for pipeline and structures and soil and earth transportation During the Project operational period, the APs with suitable qualifications will be employed and receive on-the-job training. Women and the poor will be given priority to be employed by the Project. After the constructions of the resettlement site have been completed, it is planned that 140 public welfare position jobs shall be provided for the APs based on discussion with the IA: 50 landscape workers, 30 road maintenance, 30 safeguard and 30 cleaners. Such employment to be generated by the Project will be provided to the APs as priority if they apply for. The ratio of employment for men and women will be 1:2. The salary will be between CNY 1,500 per month. As a result, the APs could get access to additional income generation opportunities and additional income. Therefore, the APs will benefit from the resettlement of the Project. 68

69 8.2.5 Provision of Technical Training to the APs 149. In recent years, with the rapid development of Beihai City s economy and the establishment of the Beibu-Gulf Economic Development Zone, the improvement of urban infrastructure and sectors in good advantages have experienced fast development in Beihai City, in particular the accelerated development of energy, petrochemical, electronic products, fishery, ports, real estate, logistics, services and tourism industries which will generate a lot of job opportunities. The technical workers and social service labors will be in shortage In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the RO and IA will cooperate with the departments of Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the relocated APs. The training of technical and management skills will be consistent with the district economic features, requirements of the labor market and the enterprises to ensure that the training is practical, efficient and targeted. Each AP will get one-time training for the field they choose. The female APs will enjoy the same training budget with the male APs at the training budget By taking into consideration of lack of working skills for the major labor force of the affected households, especially women, the IA will ensure that at least 50% of the trainees will be females. After training of occupational skills, the APs could get jobs in the city. A total of about CNY 400 per person for the 498 persons in labor force to be affected by permanent land acquisition and temporary land occupation has been budgeted as training cost to cover the cost of training provided to the APs The training will be carried out twice a year, commenced from April 2011 and last till November The training will be implemented in association with local district government, VC, WF, and vocational education department. The training will be provided to all APs with labor force, especially the women. For each training, at least 50% of women should be included. The training includes: (i) Public security guard, cleaning, public aesthetic landscaping, maintenance of public facilities, management of parking lot, and others; (ii) Horticulture, sewing and knitting, beauty and hairdressing; (iii) Maintenance and repair of motorcycle, vehicle, and electronic products; (iv) Car decoration and management of cleaning and washing accessories; (v) Food, catering and hotel services, and domestic servant services; and, (vi) Sales of products, small business registration and operation Rehabilitation Plan of Ground Attachments 153. The compensation of ground attachments, including infrastructures and special facilities will be based on the replacement value according to the relevant documents of compensation standards issued by BMG office. Compensation in cash will be paid to the affected owners to reconstruct the ground attachments The units with property rights will be in charge of the rehabilitation and reconstruction. The rehabilitation measures of the ground attachments should be planned in advance. In practical operation, these measures should be suitable to local 69

70 conditions to ensure safe, efficient, timely, and accurate, and try to minimize impacts on the local residents For the relocation of affected infrastructures and special facilities, the relocation should be carried out according to the Project construction maps and drawings. The relocation of the affected municipal infrastructures and special facilities should be reduced as much as possible on the premise that the constructions do not affect the residents Special Concerns during Resettlement Process Gender Issue 156. According to the Chapter of Women and Economy documented in Women s Development Plan of Guangxi Zhuang Autonomous Region ( ), it clearly stated that The rights of women for work should be protected, it should be ensured that women enjoy the equal right with men on economic resources, the discrimination to women should be forbidden, women and men should have equal status for employment, and women s labor rights should be protected. Thus, women have equal entitlement and rights with men for employment and training in the Project The household surveys showed that women from AP families are generally lacking of working skill other than housework skill. They are in inferior position of looking for job opportunities when competing with men. They usually work outside as seasonable labors or run a small business. Women take more responsibility for the family especially for those with female as the head of a household. The future welfare of women to be affected is important. Therefore, special attention will be paid to women s special concerns, such as compensation payments, training programs, and other assistances, to reduce any special social risks caused by the implementation of this Project Women will be eligible, on an equal basis, for all compensation payments, training programs and other assistances to be provided. The reconstruction house plot allocated for resettlement and compensation payment should belong to both wife and husband of a household. In order to protect the properties of the APs, both the names of wives and husbands should be written on the property certificates of houses. In order to ensure this, the IA will carry out explanation and propaganda work to the affected women and closely involve them in the resettlement process The IA, RO, WF, and RC/VCs have reached agreement that WF will involve in guiding consultation and public participation for income rehabilitation activities in combination with their current ongoing programs so that female APs can make sufficient earnings for a sustainable livelihood after house demolition Assistance to Vulnerable Households 160. Of the total affected, 57 households or 235 persons, including households enjoying five guarantees, households living under MLG, households with disabilities, household under extremely difficulties, and households with female-headed, are identified as vulnerable groups during the measurement and socioeconomic surveys during ADB PPTA phase. The local Civil Affair Bureau and Human Resource and Social Security Bureau will be responsible for including these households into the social safeguard program. The local Civil Affair Bureau will provide CNY 200/month person to these vulnerable households. A minimum earning of CNY 670/month (minimum wage standard) is guaranteed if the vulnerable households 70

71 could find jobs generated by the Project. The following provisions will be provided to vulnerable groups to rehabilitate their income: 1) training without charge will be provided to them to increase the knowledge and skills of the vulnerable groups; 2) provision social safeguard program, with 30% contribution from the local government and 70% contribution from rural collectives, and farmers (The land loss farmers pay 20% based on the 40% for the average wage of the urban workers in last year); 3) provision of employment opportunities generated by the Project and provision of employment information to the vulnerable groups; and 4) provision of micro-credit to them by the local rural credit union or local banks. The IA and the local government will assist the APs to get access to micro-credit from local banks During the relocation stage, the IA i.e., BRPCIDCL and local government will provide in-kind assistance for the vulnerable groups in the following aspect: (i) (ii) For the elderly or disabled, priority should be provided to them during the selection of the location of reconstruction house land in the resettlement sites; Provide labor and transportation assistance to the vulnerable groups without charge Summary of Rehabilitation Measures 162. Based on the LAR impacts, rehabilitation measures will be implementated by the IA and relevant government organizations. Table 8-7 provides the summary information of LAR impacts and rehabilitation measures for the Project to the APs. 71

72 Table 8-7: Summary Informaiton of LAR Impacts and Rehabilitation Measures Items Villages Shuiying Liyujiang Dawangjiang Jiangshan Shanjiao HHs by LA (no.) APs by LA (no.) HHs by temporary land occupation (no.) APs by temporary land occupation No. of affected (no.) households/ persons / HHs by residential structure vulnerable demolition (no.) APs by residential structure demolition (no.) Vulnerable households (no.) Vulnerable persons (no.) Permanent collective land Type of losses acquisition (mu) encountered Temporary land occupation (mu) Residential structure demolition (m 2 ) 1, , , Total amount of allocated to the AHs for rehabilitation/relocation in the village 3,989, ,555, ,192, ,573, ,681, Type of entitlement for rehabilitation Employment, tertiary industry development, technical training, social insurance Type of income generation activities proposed Employment and tertiary industry development (1) Public security guard, cleaning, public aesthetic landscaping, maintenance of public facilities, management of parking lot, and others; (2) Horticulture, sewing and knitting, beauty and hairdressing; (3) Maintenance and repair of motorcycle, vehicle, and electronic products; Type and no. of training proposed (4) Car decoration and management of cleaning and washing accessories; (5) Food, catering and hotel services, and domestic servant services; and (6) Sales of products, small business registration and operation. A total of 5 training activities are proposed in each village. No. of job to be created during construction 1,260 person-years Grocery store, Grocery store, Grocery store, Grocery store, Grocery store, Type of tertiary activities proposed hairdressing hairdressing hairdressing hairdressing hairdressing salon, food salon, food salon, food salo, food salon, food 72

73 Items Villages Shuiying Liyujiang Dawangjiang Jiangshan Shanjiao catering service, laundry, transportation service, clothing shop, sales of tourism catering service, laundery, transportation service, clothing shop, sales of tourism catering service, laundry, transportation service, sales of tourist products catering service, laundry, transportation service catering service, laundry, transportation service, clothing shop, sales of tourist products products and products and relevant sector relevant sector 73

74 IX. COST ESTIMATES 9.1 Compensation and Resettlement Costs 163. The resettlement costs are included in the overall budget of the Project. The total cost of resettlement for the Project is estimated to be CNY million, equivalent to US$ 8.60 million in 2010 prices, including 15% contingencies (physical and price). The estimated costs include compensation for collective land, residential structures, non-residential structures and including family owned shops, temporary land occupation, basic infrastructures and special facilities, other costs, land-related taxes, and contingencies. The detailed cost estimates of resettlement are presented in Table 9-1. The summary cost is presented in Table 9-2. Table 9-1: Detailed Cost Estimates of Resettlement No. Item Unit Amount Unit Price Estimate Cost (CNY) (CNY) 1 Permanent Land Acquisition 28,369, Collective Land mu ,369, Dryland mu ,230 10,373, Paddy land mu ,230 1,650, Grass land mu , , Wood land mu ,600 1,783, Wasteland mu , , Fish pond mu ,230 1,973, River body mu ,600 3,730, Old road mu , , Other land mu ,600 6,976, Temporary Land Occupation mu , Dryland mu ,533 77, Grass land mu ,533 22, Wood land mu , , Wasteland mu ,000 8, River body mu ,533 8, Homestead mu ,533 1, Residential Structure Demolishment 4,418, Residential 3.1 Structure m 2 6, ,907, Demolishment Brick-concrete m 2 4, ,031, Brick-wood m 2 1, , Simple m , Relocation Allowance 511, Relocation m 2 allowance 6, , Temporary transit m allowance months 6, , Lost of working days due to relocation HH , Timely signing HH agreement award 78 5, , Ground Attachment Demolishment 18, Fences m , Drinking well No Water tower No. 1 5, ,

75 Unit Price Estimate Cost No. Item Unit Amount (CNY) (CNY) Velectricity line m Cement electricity ople No. 2 Basic Costs of LAR 33,075, Other Costs 1,325, RP preparation 100, , Admin. costs 2.1% of LAR costs 694, M&E costs 1% of LAR costs 330, Training costs 200, , Land-Related Taxes 19,111, Land admin. costs 2.8% of LA costs 926, Farmland Dryland mu ,515, reclaima- Paddy mu tion cost land , , Newly added construction land use m 2 566, ,862, LA Laborforce Fee m 2 566, , Contingencies 4,961, Physical 10% of LAR costs 3,307, Contingencies 7.2 Price Contingencies 5% of LAR costs 1,653, Total 58,473, Table 9-2: Summary Resettlement Costs No. Compensation Project Estimate Cost (CNY) 1 Permanent Land Acquisition 28,369, Temporary Land Occupation 269, Demolishment of Structures and Auxiliaries 4,418, Demolishment of Infrastructure and Special Facilities 18, Other Cost 1,325, Land-Related Taxes 19,111, Contingencies 4,961, Total 58,473, Annual Budget 164. According to the Project schedule, the project construction will take about 20 months to complete between April 2011 and November The annual cash flow is estimated to be 50% or CNY million in 2011, 50% or CNY million in 2012, respectively. Table 9-3 provides the annual budget of resettlement cost. Table 9-3: Annual Budget of Resettlement Cost Total Total Budge (CNY 10,000) 2, , , Proportion of Total Budget (%) 50% 50% 100% 75

76 9.3 Flow of Fund 165. Fund related to resettlement will be distributed through the following channels (See Table 9-4): Permanent land acquisition of collective-owned land Table 9-4: Flow of Fund BRPCID CL RO RC/ VC APs Temporary land occupation BRPCID CL RO RC/ VC APs Residential structures demolishment BRPCID CL RO RC/ VC APs Auxiliaries BRPCID CL RO RC/ VC APs Relocation allowance BRPCID CL RO RC/ VC APs Basic infrastructures and special facilities BRPCID CL RO IA Investigation and design cost BRPCID CL DI Office costs administration BRPCID CL LAR implementation agencies Training cost Mornitoring and assessment cost BRPCID CL BRPCID CL Training institutions IMA 76

77 10.1 Principles X. LAR IMPLEMENTATION SCHEDULE 166. The resettlement schedule for land acquisition, structure demolition and resettlement for the Project will be coordinated with the respective construction schedule. Based on the time schedule of the Project, the land acquisition and resettlement schedule have been developed, reflecting the linkage and consistency between the time schedule of resettlement/land acquisition and civil works construction tasks In order to ensure that all aspects of the RP can be achieved, land acquisition will start at least one month before construction. The affected persons can move to new resettlement houses at least one month before old structures are demolished. Before the land acquisition and resettlement, a final measurement survey will be conducted in the affected community/village, and the contracts with each affected household will be negotiated and signed. The disbursement of compensation should be sufficiently paid. Also, arrangements for land acquisition and structure demolishment will be established before LAR proceeds LAR Implementation Schedule 168. Resettlement implementation will be scheduled in stages to coincide with the overall Project schedule between May 2011 and December The land acquisition will start from April 2011 to November It is planned that there will no commencement of civil works until all compensation is paid and all livelihood rehabilitation measures are in place. In place means that all arrangements are made to commence rehabilitation and APs are registered for these. It is planned that the land acquisition shall be completed before the start of Project construction However, before land acquisition and structure demolishment, a final measurement survey will be conducted in the affected community and villages in January-February The compensation contracts will be negotiated and signed. Also, resettlement arrangements should be made before LAR proceeds. Based on the detailed measurement survey (DMS), the RP will be updated and submitted to ADB for review and approval prior to commencement of land acquisition and resettlement and award of contracts The LAR schedule has been divided into four stages: 1) Land Acquisition and Compensation Planning - Apply for and receive Planning Land Use Certificate, Construction Land Use Certificate, and Structure Demolition Certificate ; - Conduct detailed measurement surveys of the affected area and houses to determine the specific losses eligible for payment of compensation; - Identify poor and vulnerable APs; - Finalize compensation/resettlement strategies in consultation with the local governments, APs and their representatives; - Conduct public information/consultations on RP; - Sign contract; and, - Finalize relocation area. 77

78 2) Land Acquisition and Resettlement Activities - Provide compensation payment; - Construct house plot, construct new houses, infrastructures and other facilities; - Transfer APs to new location; and, - Demolish residential structures and auxiliaries. 3) Income Restoration - Provision of employment opportunities during the Project construction and operation phases; - Assistance in the identification of employment and business opportunities for APs in the local enterprises and businesses; - Targeted training; - Promotion and development of tertiary industry; and, - Special attention paid to the vulnerable groups. 4) Monitoring - Hire monitoring agency; - Approve TOR by the Bank; - Monitor LAR; - Monitor income restoration program; - Monitor poverty reduction program and assistance provisions to vulnerable groups; and, - Conduct external evaluation of the Project The resettlement supervision milestone is presented in Table Based on the project schedule of civil works, the resettlement plan preparation will be continue after the PPTA stage, and the land acquisition and resettlement are planned to commence in April of 2011 and complete in November The RP planning and implementation schedule with time bound activities is shown in Figure No. Table 10-1: Resettlement Supervision Milestone Resettlement Target Responsible Deadline Tasks Agency 1. Disclosure Information booklet 192 AHs and 791 APs Approved RP 1 township, 1 RC and 4 VCs RP posted on ADB website 2. Approval of RP and Budget 3. Agreements Compensation rates $8.60 million (Recheck) 1 township, 1 RC and 4 VCs IA (BRPCIDCL) and RO BMG, District Government, and RO BMG, PMO, IA and ADB BMG, District Government, and RO BMG, District Government, BLRB, BHDAO, RO, RC/VCs, PMO, and IA Dec 2010 Dec 2010 Dec 2010 Dec 2010 April 2011 Status Planned Planned Planned Planned Planned 78

79 No. Resettlement Tasks Target Responsible Agency Households 791 APs PMO, IA, BLRB, BHDAO, RO, and RC/VCs 4. Detailed Plans Community 1 RC and 4 PMO, IA, DI, and rehabilitation VCs RO plans Plan for vulnerable group if identified Training Plans for APs 57 AHs or 235 APs All APs 6. Establishment of Implementation Capacity 7. Monitoring & Evaluation Baseline 78 HHS or survey 324 APs Set-up internal supervision Hiring external monitor Internal monitoring reports External monitoring reports Resettlement Completion Reports Evaluation reports PMO, IA, BMG, Beihai Civil Affairs Bureau/Beihai Labor & Social Security Bureau PMO, IA, RO, training institutions PLG, PMO, IA, RO, FLRB, FHDAO, Others Deadline April 2011 Nov 2012 April 11 Nov 12 April 10 Nov 12 April 11 - Nov 12 May 10 Nov 12 Status Planned Planned Planned Planned In process PMO, IA, and DI Apr-May 10 Completed As per RP PMO and IA April 11 Planned Nov 12 As per RP PMO Dec 2010 Planned Quarterly PMO, IA, and RO April st Report Semi-annual IMA Jul 11 Jan 12 1 report IMA All work wil be completed in Dec 12 4 annual IMA Dec 11 reports Dec 12 Dec 13 Dec 14 IA, RO, VC 1 st Report 2 nd Report 1 st Report 2 nd Report 3 rd Report 4 th Report Ongoing 8. Documentation of Consultation 9. Documentation of IA, RO, RC/VC Ongoing Grievances 10. Flow of Funds / Compensation To IA 50% BMG Apr 11 Pending To affected VC IA and RO Apr 11 Nov To affected IA and RO Apr 11 households Nov 12 AFs = Affected Families; BRPCIDCL = Beihai Road and Port Construction and Investment Development Co., Ltd; BMG = Beihai Municipal Government; BHDAO = Beihai House Demolishment Administration Agency; BLRB= Beihai Land Resources Bureau; DI = Design Institutes; IA = Implementation Agency; IMA= Independent Monitoring Agency; PLG= Project Leading Group; PMO = Project Management Office; and RO = Resettlement Office. 79

80 Figure 10-1: RP Planning and Implementation Schedule 80

81 81

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