Wangliao Road (8#) Extension Construction Project in Yongchuan District. Resettlement Action Plan

Public Disclosure Authorized SFG1465 World Bank-financed Chongqing Urban-Rural Integration Project Public Disclosure Authorized Wangliao Road (8#) Extension Construction Project in Yongchuan District Public Disclosure Authorized Resettlement Action Plan Public Disclosure Authorized Chongqing Shrum Business Administration Consulting Co., Ltd. April 2015

Letter of Commitment The Wangliao Road (8#) Extension Construction Project in Yongchuan District (hereinafter, the Subproject ), a subproject of the World Bank-financed Chongqing Urban-Rural Integration Project, involves resettlement. Therefore, this Resettlement Action Plan (RAP) has been prepared as the basis for land acquisition (LA), house demolition (HD) and resettlement in accordance with the Bank policy on involuntary resettlement (OP4.12), and the applicable state and local regulations and policies to protect the basic rights and interests of the affected persons (APs), and restore or even improve their production level and living standard after resettlement. The Yongchuan District Government, Chongqing Municipality has reviewed this RAP, and agrees to implement resettlement, make resettlement funds available fully and timely, and compensate and resettle the APs properly in light of this RAP. The Yongchuan resettlement implementing agency (IA) is hereby instructed to implement and manage the resettlement of the Subproject in coordination with the agencies concerned. Yongchuan District Government (Official seal) Head (or deputy head in charge): (signature) (date)

Foreword I. Purpose of preparing this RAP 1 The RAP is prepared in accordance with the applicable laws of the People s Republic of China and local regulations and a series of provisions in the Bank Operational Policy OP4.12 on Involuntary Resettlement for the purpose of developing an action plan for resettlement and restoration for the people affected by the project, so that they benefit from the project, their standard of living is improved or at least restored after the completion of the project. 1 II. Definitions of terms 2 Displaced persons 2 Based on the criteria for eligibility for compensation, Displaced Persons may be classified in one of the following three groups: a) those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); b) those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets-provided that such claims are recognized under the laws of the country or become recognized through a process identified in the RAP; and c) those who have no recognizable legal right or claim to the land they are occupying. 3 Persons covered under paragraphs 2(a) and (b) are provided compensation for the land they lose, and other assistance. Persons covered under paragraph 2(c) are provided resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objective set out in this policy, if they occupy the subproject areas prior to a cut-off date 1 established by the borrower and acceptable to the World Bank. Persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. All persons included in paragraph 2(a), (b), or (c) are provided compensation for loss of assets other than land. III. Compensation and resettlement measures 4 To address the following impacts of the involuntary taking of land: (i) displacement or loss of shelter; (ii) lost of assets or access to assets; or (iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location, an RAP or a resettlement policy framework shall be prepared to cover the following: (a) The Resettlement Action Plan or resettlement policy framework includes measures to ensure that the displaced persons are: informed about their options and rights pertaining to resettlement; consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and provided prompt and effective compensation at full replacement cost 2, for losses of assets attributable directly to the project. (b) If the impacts include physical displacement, the RAP or resettlement policy framework includes measures to ensure that the displaced persons are: provided assistance (such as moving allowances) during displacement; and provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the old site. (c) Where necessary to achieve the objective of the policy, the Resettlement Action Plan or resettlement policy framework also includes measures to ensure that displaced persons are: 1 Normally, this cut-off date is the date the census begins. The cut-off date could also be the date the subproject areas was delineated, prior to the census, provided that there has been an effective public dissemination of information on the area delineated, and systematic and continuous dissemination subsequent to the delineation to prevent further population influx. 2 "Replacement cost" is the method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets should not be taken into account. ii

offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; provided with development assistance in addition to compensation measures described in paragraph 4(a)(iii), such as land preparation, credit facilities, training, or job opportunities. 5 Cut-off date: means the date of publication of the announcement of land acquisition and property demolition in this project. After this date, the displaced persons shall not build, rebuild or expand their properties; shall not change the uses of their properties and land; shall not lease their land, lease, sell or purchase their properties; and any person that moves in after this date shall not qualify as a displaced person. iii

Contents 1 Overview of the Subproject... 7 1.1 Background... 7 1.2 Progress of Project Preparation and Resettlement... 7 1.3 Size of the Subproject... 8 1.4 Measures to Reduce Resettlement... 8 2 Impacts of the Subproject... 9 2.1 Overview... 9 2.2 Impacts of the Subproject... 9 3 Socioeconomic Profile of the Subproject Area... 13 3.1 Socioeconomic Background of the Subproject Area... 13 3.2 Basic Information of AHs... 15 3.3 Basic Information of Affected Individual Businesses... 17 4 Legal and Policy Framework... 19 4.1 Regulations and Policies on Resettlement... 19 4.2 State Laws and Regulations... 19 4.3 Municipal Regulations... 27 4.4 District Measures... 27 4.5 Bank Policy on Involuntary Resettlement... 29 4.6 Resettlement Principles of the Subproject... 30 5 Compensation Rates for LA and HD... 31 5.1 Compensation Rates for Permanent LA... 31 5.2 Compensation Rates for Temporary Land Occupation... 32 5.3 Compensation Rates for Rural Residential Houses... 32 5.3.1 Cash Compensation... 32 5.3.2 Self-construction on Allocated Land... 32 5.4 Compensation Rates for Affected Individual Businesses... 33 5.5 Compensation Rates for Affected Ground Attachments... 33 6 Production and Livelihood Restoration Programs... 35 6.1 Restoration Program for Permanent LA... 35 6.1.1 Appraisal of Lost Income... 35 6.1.2 Income Restoration Program... 35 6.1.3 Endowment Insurance for Population Converted into Urban Status... 35 6.1.4 Employment Services for the APs... 37 6.2 Restoration Program for Temporary Land Occupation... 38 6.3 Resettlement Program for Demolished Rural Residential Houses... 38 6.3.1 Cash Compensation... 39 6.3.2 Self-construction on Allocated Land... 39 6.4 Resettlement Program for Affected Individual Businesses... 39 6.5 Resettlement Program for Affected Ground Attachments... 40 7 Public Participation and Consultation... 41 7.1 Means of and Measures for Public Participation... 41 7.1.1 Means of Participation... 41 7.1.2 Measures for Participation and Consultation... 41 7.2 Public Participation Activities at the Preparation Stage... 42 7.3 Public Participation Activities at the Implementation Stage... 43 4

7.3.1 Participation in Housing Construction... 43 7.3.2 Participation in the Use and Management of Land Compensation Fees... 43 7.3.3 Participation in Subproject Construction... 43 7.4 Women s Participation... 44 8 Grievance Redress Procedures... 45 8.1 Grievance Redress during LA and HD... 45 8.2 Grievance Redress during Construction... 46 9 Organizational Structure and Implementation Progress... 47 9.1 Organizational Structure... 47 9.2 Organizational Responsibilities... 47 9.3 Staffing and Equipment... 49 9.3.1 Equipment... 50 9.3.2 Training Program... 50 9.4 Implementation Progress... 50 10 Budget and Funding Sources... 53 10.1 Budget... 53 10.2 Funding Sources... 54 10.3 Fund Flow and Disbursement Plan... 54 10.3.1 Fund Flow... 54 10.3.2 Disbursement Plan... 55 11 M&E... 56 11.1 Internal Monitoring... 56 11.1.1 Procedure... 56 11.1.2 Scope... 56 11.1.3 Reporting... 56 11.2 Independent External Monitoring... 56 11.2.1 Purpose and Task... 56 11.2.2 External M&E Agency... 56 11.2.3 Procedure and Scope... 57 11.2.4 Monitoring Indicators... 57 11.2.5 Reporting... 57 11.3 Post-evaluation... 58 12 Entitlement Matrix... 59 Appendix: Resettlement Information Booklet... 61 5

Abbreviations AH - Affected Household AP - Affected Person DMS - Detailed Measurement Survey FGD - Focus Group Discussion HD - House Demolition LA - Land Acquisition M&E - Monitoring and Evaluation PMO - Project Management Office PRC - People s Republic of China RAP - Resettlement Action Plan RIB - Resettlement Information Booklet Units Currency unit = Yuan (RMB) 1.00 yuan = $0.15 1 hectare = 15 mu 6

1 Overview of the Subproject 1.1 Background 1. Yongchuan District is located north of the upper Yangtze River and southwestern Chongqing Municipality, 55km away from downtown Chongqing and 276km away from downtown Chengdu, run through the Chongqing-Kunming Expressway, Chengdu-Chongqing Railway and Chongqing Third Ring Expressway, and has been the traffic, commercial, cultural and financial center of western Chongqing. In September 2013, the Chongqing Municipal Government proposed to build Yongchuan District into a big city in the future municipal development plan, which brought an unprecedented golden opportunity for the district s development. 2. A traffic system composed of one ring highway and six radiating highways has been proposed for Banqiao Town, but there is no convenient traffic trunk highway to the outside. Currently, Banqiao Town is connected with Sanjiao Town via a township-level highway, which has many turns, high gradients, poor pavement and low transport capacity. Due to backward traffic conditions, Banqiao Town has a weak logistics function, its tourism resources cannot be integrated effectively, and the industrial development of the two towns cannot be supported. This will become a bottleneck on local economic and tourism development, and the establishment of the Sanjiao-Banqiao economic zone. In this context, the Yongchuan District Government has applied for a loan with the Bank for the construction of the Subproject, which aims to improve the accessibility of the two central towns in north Yongchuan, create favorable conditions for local development, and promote the integration of local tourism resources, and the economic and social development of north Yongchuan. 3. The Subproject has a gross investment of 127.03 million yuan, including a Bank loan of 48.8 million yuan, accounting for 38% of gross investment. 1.2 Progress of Project Preparation and Resettlement 4. The owner of the Subproject, Yongchuan Zhengxin State-owned Assets Management Co., Ltd., appointed a design agency to prepare the pre-feasibility study report of the Subproject. In June 2014, the preparation of the feasibility study report, RAP, environmental impact assessment report, and environmental management plan began. Through the careful planning of the Yongchuan District Development and Reform Bureau, and owner, and the excellent work of the agencies concerned, the preparatory work of the Subproject progressed smoothly. 5. Chongqing Shrum Business Administration Consulting Co., Ltd. was appointed by the Yongchuan PMO to participate in the preparation of this RAP as the resettlement consulting agency. The RAP preparation team conducted a one-week socioeconomic survey in the subproject area, and extensive public consultation with the APs since mid July 2014, and a further survey together with interviews in August and September 2014 and March 2015. The RAP was completed in March 2015. 6. According to the Bank policy on involuntary resettlement (OP4.12), the cut-off date for the identification of APs and the determination of affected physical quantities of the Subproject will be the beginning date of the detailed measurement survey (DMS), which is expected to begin in April 2015. Anyone who moves in after this date will not qualify as an AP, and the APs should not build, rebuild or expand their houses, should not change the uses of their properties and land, and should not lease their land, lease, sell or purchase their houses. Any variation in physical quantity arising from any of the above acts will not be recognized. 7

1.3 Size of the Subproject 7. The Subproject consists of Sanban Road double line construction and reconstruction: 8. 1) Sanban Road double line construction: starting from the road junction at the Banqiao Town Government, running from east to west via the Banqiao gas station, Yantouzhai, Lijiagou and Fangjiaping, and ending at the west entry of the Chongqing Third Ring Expressway west of Sanjiao Industrial Park to enter Sanjiao Industrial Park (endpoint of Jinding Avenue), with a full length of 6.34km, a design speed of 60km/h, a roadbed width of 10m, and two lanes in each direction. It consists of roadbed and pavement works, bridges and culverts, drainage works, auxiliary works, etc. 9. 2) Sanban Road reconstruction: starting from the road junction at the Banqiao Town Government, running along the existing Sanliu Highway, and ending at Sanjiao Town Sanjiao Industrial Park, with a full length of 8.420km, including 70 traffic warning signs, 32 deceleration belts, 106 alley trees and wave-shaped guardrails of 400m. 10. According to the construction schedule, the Subproject will be implemented for 27 months, namely from October 2014 to December 2016, in which the construction period will be 18 months. Figure 1-1 Schematic Map of Starting and Ending Points 1.4 Measures to Reduce Resettlement 11. At the planning and design stages, the design agency and owner of the Subproject took the following effective measures to reduce the local socioeconomic impacts of the Subproject. For example, it was formally planned to expand the existing road, which involved extensive HD. The optimized option has avoided the demolition of 5 transformers, 21 telegraph poles and 18 houses. 12. At the RAP preparation and implementation stage, when LA or HD is unavoidable, the following measures will be taken to reduce the local impacts of the Subproject: Strengthen the collection of basic information, make an in-depth analysis of the local present socioeconomic situation and future prospect, and develop a feasible RAP based on the local practical conditions to ensure that the APs will not suffer losses due to the Subproject. Encourage public participation actively and accept public supervision. Strengthen internal and external monitoring, establish an efficient and unobstructed feedback mechanism and channel, and shorten the information processing cycle to ensure that issues arising from project implementation are solved timely. 8

2 Impacts of the Subproject 2.1 Overview 13. The Subproject will affect 9 groups of 3 villages (Liangfengya and Benzun Villages, Banqiao Town; and Yufeng Village, Sanjiao Town) in Yongchuan District, all of which will be affected by LA and HD. 296.4 mu of land will be acquired permanently, all being rural collective land (including 210.85 mu of cultivated land), affecting 143households with 417 persons; 76.7 mu of rural collective land will be occupied temporarily; rural residential houses of 1,130 m 2 will be demolished, affecting 8 households with 37 persons. In addition, the Subproject will affect 4 individual businesses with a total demolition area of 70 m 2 and 13 persons, and 4 types of ground attachments. 147households with 430 persons will be affected in total. 2.2 Impacts of the Subproject 2.2.1 Permanent LA 14. 9 groups of 3 villages (Liangfengya, Benzun and Yufeng), two towns (Banqiao and Sanjiao) in Yongchuan District will be affected by permanent LA for the Subproject.296.4 mu of land will be acquired permanently, all being rural collective land (including 210.85 mu of cultivated land, 43.19 mu of woodland, 14.06 mu of fishpond and 8.24 mu of housing land), affecting 143 households with 417 persons, where orange and tea seedlings are grown on woodland, and paddy rice and corn on cultivated land mainly. See Table 2-1. Town Village Group Banqia o Sanjiao Liangfe ngya Benzun Wangfe ng Table 2-1 Summary of Permanently Acquired Land Subtotal (mu) Irrigated land Rural collective land (mu) Nonirrigated land Wood land Fish pond 1 Housi ng land Unuse d land Affected Laoloufang 24.52 9 7.12 5.7 0 0.7 2 13 42 Longyaogan 26.6 8 9.5 5.7 0 1.4 2 10 34 HHs Sifangbei 28.19 10 9 4.39 3 1.2 0.6 10 23 Subtotal 79.31 27 25.62 15.79 3 3.3 4.6 33 99 Wuguibao 32.3 15.2 9.7 4.4 0 0 3 15 48 Gaopo 37.7 16 11.5 7 1 0.2 2 13 34 Ningjiawan 40.56 14 11 6.5 6.06 0 3 12 31 Yandongkou 35.5 12 12.5 5.5 1 1.5 3 13 44 Subtotal 146.06 57.2 44.7 23.4 8.06 1.7 11 53 157 Huabei 38.17 10.13 18.5 1.5 3 3.24 1.8 29 84 Shuang an 32.5 13.1 14.6 2.5 0 0 2.3 28 77 Subtotal 70.67 23.23 33.1 4 3 3.24 4.1 57 161 Total 296.4 107.43 103.42 43.19 14.06 8.24 19.7 143 417 Popul ation Note: 14.06 mu fishpond includes 8.03mu raising fishes, and the impact details are described in 2.2.4; and the other 5.76 mu belongs to collectives for farmland irrigation. Since the impacts are limited, there will not affect the farmland irrigation. 2.2.2 Temporary Land Occupation 15. 9 groups of 3 villages (Liangfengya and Benzun Villages, Banqiao Town; and Yufeng Village, Sanjiao Town) in Yongchuan District will be affected by temporary land occupation.76.7 mu of rural collective land will be occupied temporarily, including 63.5mu of cultivated land and 13.2 mu of 9

Population HHs Shed Residence Simple Earth timber Masonry timber Masonry concrete Subtotal Banqiao Sanjiao Resettlement Action Plan of the Yongchuan Subproject of the Chongqing Urban-Rural Integration Project woodland, affecting 65 households with 199 persons. See Table 2-2. Town Village Group Banqiao Sanjiao Liangfengya Benzun Wangfeng Table 2-1 Summary of Temporarily Occupied Land Temporarily occupied land (mu) Irrigated Non-irrigated Wood Subtotal land land land AHs Affected population Laoloufang 6.8 0.1 4.5 2.2 6 17 Longyaogan 8.7 0 5.4 3.3 8 25 Sifangbei 10.5 4.2 4 2.3 5 15 Subtotal 26 4.3 13.9 7.8 19 57 Wuguibao 6.5 2 3.4 1.1 6 19 Gaopo 9 3.3 4.5 1.2 7 20 Ningjiawan 6.3 2.4 3.2 0.7 10 28 Yandongkou 9.6 2.8 5.4 1.4 5 16 Subtotal 31.4 10.5 16.5 4.4 28 83 Huabei 6.3 2.5 3.1 0.7 6 21 Shuang an 13 4.5 8.2 0.3 12 38 Subtotal 19.3 7 11.3 1 18 59 Total 76.7 21.8 41.7 13.2 65 199 2.2.3 Demolition of Rural Residential Houses 16. 8 households with 37 persons in 5 groups of 3 villages (Liangfengya and Benzun Villages, Banqiao Town; and Yufeng Village, Sanjiao Town) in Yongchuan District will be affected by HD for the Subproject, where rural residential houses of 1,130 m 2 will be demolished, including 710 m 2 in masonry concrete structure, 330 m 2 in masonry timber structure, 70 m 2 in earth timber structure and 20 m 2 in simple structure, or residential houses of 820 m 2 and sheds of 310 m 2. The AHs have an average housing size of 102.5 m 2 per household or 22.16 m 2 per capita. See Table 2-3. Table 2-2 Affected Rural Residential Houses Housing structure and size (m 2 ) Type (m 2 ) Affected Tow n Village Group HH head Laoloufang ZB 20 0 0 0 20 0 20 1 3 Liangfengya Longyaogan LYS 200 200 0 0 0 160 40 1 5 Sifangbei YXJ 80 80 0 0 0 80 0 1 4 Subtotal 300 280 0 0 20 240 60 3 12 Benzun Yandongkou TMF 80 0 80 0 0 0 80 1 5 Subtotal 80 0 80 0 0 0 80 1 5 CYL 320 260 60 0 0 260 60 1 8 Wangfeng Shuang an MGF 210 170 40 0 0 170 40 1 3 YTS 100 0 70 30 0 70 30 1 4 YCS 120 0 80 40 0 80 40 1 5 Subtotal 750 430 250 70 0 580 170 4 20 Total 1130 710 330 70 20 820 310 8 37 2.2.4 Affected individual businesses 17. The Subproject will affect 4 individual businesses with fishponds of 8.3 mu, and demolish a simple fish shed of 70 m 2. 10

18. For business owner Yuan Shizhong, his 5 mu fish farm is located in Tiaodun Group of Liangfengya Village, Banqiao Town, and 1.3 mu of his fishpond will be affected by the Subproject; business owner Zhang Yaoyuan rents 30 mu of collective land for fish culture, and t 3 mu of his fishpond will be affected by the Subproject; for business owner Ding Fujie, his 5 mu fishpond Sanjiao Town Huabei Group of Yufeng Village, and 2 mu of his fishpond will be affected by the Subproject; business owner Xie Xiuyun rents 5 mu of collective land in Yufeng Village, Sanjiao Town for fish culture, and 2 mu of his fishpond will be affected by the Subproject. Their a simple fish shed of 70 m2 will be demolished for the Subproject. 19. See Table 2-4. Table 2-4 Affected Individual Businesses Town Village Individual business Degree of impact Affected HD area (m 2 ) Affected fishpond Simpl population Total area (mu) e Liangfeng Yuan Shizhong Fish Banqia ya Farm Fishpond 3 1.3 0 0 o Zhang Yaoyuan Fish Benzun Farm Fishpond 4 3 0 0 Ding Fujie Fish Farm Fishpond 3 2 0 0 Sanjia Wangfeng o Fishpond, simple fish Xie Xiuyun Fish Farm 3 2 70 70 shed Total 4-13 8.3 70 70 2.2.5 Affected Vulnerable Groups 20. Vulnerable groups mainly refer to the poor (below the minimum living security line), five-guarantee households, the disabled, psychos, women-headed households, etc. According to the DMS in July 2014, there is no vulnerable group in the population affected by the Subproject. 2.2.6 Affected Population 21. 143households and 4 individual businesses with 430 persons will be affected by LA and HD for the Subproject, in which 143 households with 417 persons will be affected by permanent LA, 8 households with 37 persons (also all affected by LA) by the demolition of rural residential houses, and 4 individual businesses with 13 persons will be affected. See Table 2-5. Permanent LA Demolition of rural residential houses Affected individual businesses Where Table 2-5 Information of Affected Population Type of impact Subtotal Affected households 143 Affected population 417 Affected households 8 Affected population 37 Affected individual businesses 4 Affected population 13 Households affected by both LA and HD 8 Population affected by both LA and HD 37 Total (1) Affected individual businesses 4 Affected households 143 Affected population 430 Note: (1) Total excludes the households and population affected by both LA and HD. 11

2.2.7 Affected Ground Attachments 22. The Subproject will affect 4 types of ordinary ground attachments. See Table 2-6. Table 2-6 Summary of Affected Ground Attachments Item Spec. Unit Qty. Enclosing walls Brick m 3 86 Sunning grounds Cement m 2 658 Telegraph poles Round, less than 9m / 68 Fruit trees 10-15cm in diameter / 478 12

3 Socioeconomic Profile of the Subproject Area 23. In order to learn the socioeconomic profile of the subproject area, the RAP preparation team conducted a field survey in July 2014 using such method as literature review, door-to-door survey and interview. A supplementary survey was conducted in August together with interviews. 3.1 Socioeconomic Background of the Subproject Area 3.1.1 Chongqing Municipality 24. Chongqing Municipality is located in the upper Yangtze River, and the junction of central and western China, being an important central city of China, a historically and culturally famous city, and the economic center and traffic hub of southwestern China, with a land area of 82,400 km 2 and a resident population of 28.8462 million (end of 2011), governing 40 districts/counties, 839 townships and 175 sub-districts. At the end of 2012, Chongqing s registered population was 29.45 million. 25. Since it became a municipality directly under the central government in 1997, significant progress has been made in economic and social development. In 2012, the city s GDP was 1.1459 trillion yuan, a year-on-year growth of 13.6%, per capita GDP 39,083 yuan, a year-on-year growth of 12.4%, and local fiscal general budgetary revenue 170.349 billion yuan, a year-on-year growth of 14.5%. With the rapid growth of economic strength, rapid progress has been made in urban and rural infrastructure construction, and social programs, and traffic, educational and medical care systems have been established preliminarily. However, the city s urban and rural infrastructure, and public service capacity remain weak, restricting the city s further development to a great extent. Therefore, the World Bank-financed Chongqing Urban-Rural Integration Project has been implemented to promote infrastructure construction, and promote economic and social development. 3.1.2 Yongchuan District 26. Yongchuan District is located north of the upper Yangtze River and southwestern Chongqing Municipality, 55km away from downtown Chongqing and 276km away from downtown Chengdu, run through the Chongqing-Kunming Expressway, Chengdu-Chongqing Railway and Chongqing Third Ring Expressway, and has been the traffic, commercial, cultural and financial center of western Chongqing. The district has a land area of 1,576 km 2, and governs 16 towns, 7 sub-districts, 45 communities and 210 villages. At the end of 2013, the district s resident population of 1.08 million. 27. In 2013, the district s GDP was 43.24 billion yuan, up 12% year on year; social investment in fixed assets 46.55 billion yuan, up 21.7%; social retail sales of consumer goods 18.89 billion yuan, up 16.4%; local fiscal revenue 3.23 billion yuan, up 13.5%; urban residents per capita disposable income 25,023 yuan, up 11.5%; and rural residents per capita net income 11,633 yuan, up 16.3%. The output values of the equipment manufacture and electronic information industries were 12.11 billion yuan and 7.26 billion yuan, with their percentages rising 0.8 and 2.2 percentage points respectively; the percentage of traditional industries dropped 5.72 percentage points. The industrial park s gross output value was 52.3 billion yuan, up 24.2%, industrial concentration 69.2%, domestic capital utilized 24.68 billion yuan, up 20.1%; gross import and export volume USD250 million, up 25.6%; and gross volume of outsourced offshore services USD65.29 million, up 22.1%. See Table 3-1. Table 3-1 Socioeconomic Profile of Chongqing Municipality and Yongchuan District in 2013 13

Population (0,000) Resettlement Action Plan of the Yongchuan Subproject of the Chongqing Urban-Rural Integration Project Division Land area (km 2 ) Per capita GDP (yuan) Per capita disposable income of urban residents (yuan) Per capita net income of rural residents (yuan) GDP (00 million yuan) Agricultural gross output value (00 million yuan) Industrial gross output value (00 million yuan) General fiscal budgetary income (00 million yuan) Chongqing 2945 82400 42978 25216 8332 12657 1402.03 13104.02 1693 Municipality Yongchuan 108 1576 40037 25023 11633 432.4 58.6 543 32.3 District Source: Statistical Yearbook of Chongqing Municipality (2013), websites of the municipal and district governments 28. It can be seen that in 2013, the district s per capita GDP was slightly lower than the average of Chongqing Municipality, and its rural residents per capita net income slightly higher than the average of Chongqing Municipality, showing that Yongchuan was above average among all districts and counties of Chongqing Municipality. 3.1.3 Affected towns and villages 29. The socioeconomic profile of Banqiao and Sanjiao Towns in Yongchuan District affected by the Subproject is as follows: 30. Banqiao Town is located in northern Yongchuan District, bordered by Yongjia and Xihe Towns, Tongliang County, with a land area of 60km 2 and a population of over 35,000, governing 11 villages and one community. In 2013, the town s GDP was 634 million yuan, up 16.5%; social investment in fixed assets 402.75 million yuan, up 21.43%; gross industrial output value 470.28 million yuan, up 18.5% (210 million yuan for enterprises above designated size), gross agricultural output value 608.89 million yuan, up 14.0%; the gross output value of tertiary industries 280 million yuan, up 22%; and rural residents per capita income 11,986 yuan, up 16.8%. 31. Sanjiao Town is located in northern Yongchuan, bordered by Shuangshi Town on the west and Banqiao Town on the east, at the junction of Yongchuan, Dazu and Tongliang Counties, 16km away from downtown Yongchuan and the nearest exit of the Chengdu-Chongqing Expressway, and 58km away from downtown Chongqing. The town boasts convenient traffic, and is run through b the provincial highways from Yongchuan to Hechuan, Dazu and Tongliang Counties, and the Chongqing Third Ring Expressway. The town has a land area of 108 km 2 and a population of 64,600, and governs 13 villages and two communities. The town is a central town of Chongqing Municipality, and the planned sub-center of north Yongchuan. Table 3-2 Socioeconomic Profile of the Affected Towns in 2013 Town Population Cultivated Grain output Rural economic Farmers per capita (0,000) area (mu) (ton) income (0,000 yuan) income (yuan) Banqiao 3.5 38390 15702 60889 11986 Sanjiao 6.46 62933 25677 100692 12923 Source: rural economic economics 2013 of Banqiao and Sanjiao Towns Table 3-3 Socioeconomic Profile of the Affected Villages in 2013 Town Village Group HHs Population Agricultural population Banqiao Liangfengya 14 Poor HHs Poor population Fiveguarantee HHs Per capita cultivated area (mu) Whole village 1035 3346 3346 24 27 7 1.229 Laoloufang 55 206 206 1 2 0 1.405 Longyaogan 46 128 128 1 1 0 1.448 Sifangbei 34 144 144 0 0 0 0.969

Town Village Group HHs Population Agricultural population Sanjiao Benzun Wangfeng Poor HHs Poor population Fiveguarantee HHs Per capita cultivated area (mu) Whole village 817 2551 2551 7 15 13 1.04 Wuguibao 91 285 285 1 2 0 1.134 Gaopo 56 176 176 0 0 0 1.206 Ningjiawan 47 154 154 0 0 0 1.211 Yandongkou 83 239 239 0 0 0 1.096 Whole village 1256 4446 4446 13 21 8 1.134 Huabei 206 796 796 2 1 0 1.02 Shuang an 138 493 493 1 0 0 1.351 32. In 2013, the rural residents per capita net income of Yongchuan District was 11,633 yuan, and that of Banqiao and Sanjiao Towns was within the range of 11,000-13,000 yuan. Economic activities vary from village to village, but outside employment is prevalent. In the 3 affected villages, nonagricultural income accounts for 68-80% of gross income. Table 3-4 Economic Activities of Affected Villages Town Village Agricultural activities and income Banqiao Sanjiao Liangfengya Benzun Wangfeng Agricultural income accounts for 28% of gross income. The main mood crops are paddy rice and corn, and commercial crops rape and sorghum. Agricultural income accounts for 32% of gross income, from crop cultivation (50%) and stockbreeding ( 40%) mainly. The main food crops are paddy rice and corn, and main commercial crops vegetables and oil crops. Agricultural income accounts for 20% of gross income. The main food crops are paddy rice and corn, and main commercial crops rape and sorghum. Nonagricultural activities and income Nonagricultural income accounts for 72%, mainly from outside employment, mainly at plants or on construction sites. Nonagricultural income accounts for 68%, mainly from outside employment (plants mainly) and business (catering mainly). Nonagricultural income accounts for 80%, mainly from outside employment. 50% of villagers work locally, dealing with coal mining, steel smelting and handicrafts mainly. 3.2 Basic Information of AHs 33. In order to learn the socioeconomic profile of the affected population, and their expected resettlement modes, the RAP preparation agency conducted a sampling survey on 39 households affected by LA and HD, including 35 valid sample households (24.48% of all households affected by LA), including all the 8 sample households are affected by HD, and all the 4 indiviudal businesses. See Table 3-5. Type of impact LA and HD Table 3-5 Sampling Rates Town Village Group AHs Sample HHs Banqiao Liangfengya Benzun Sampling rate (%) Affected population Sample population Sampling rate (%) Laoloufang 13 4 30.77 42 15 35.71 Longyaogan 10 3 30.00 34 11 32.35 Sifangbei 10 3 30.00 23 9 39.13 Wuguibao 15 4 26.67 48 12 25.00 Gaopo 13 2 15.38 34 7 20.59 Ningjiawan 12 3 25.00 31 9 29.03 Yandongkou 13 3 23.08 44 11 25.00 15

Type of impact Town Village Group AHs Sample HHs Sanjiao Wangfeng Sampling rate (%) Affected population Sample population Sampling rate (%) Huabei 29 7 24.14 84 23 27.38 Shuang an 28 6 21.43 77 17 22.08 Subtotal 143 35 24.48 417 114 27.34 3.2.1 Demographics 34. 35 households with 114 persons were covered in this survey, including 56 females, accounting for 49 %. See Table 3-6. Gender Labor force Educational level (6 years or above) Age structure Table 3-6 Survey Data on Affected Population Village Liangfengya Benzun Wangfeng Total HHs 10 12 13 35 Population 35 39 40 114 Male 18 19 21 58 Female 17 20 19 56 Percent of females 49% 51% 48% 49% Total 26 27 26 79 Farming at home 8 9 9 26 Working outside and other 18 18 17 53 Junior college or above 1 2 2 5 Senior high school 4 4 3 11 Junior high school 13 15 15 43 Primary school 12 13 16 41 Illiterate or semiliterate 1 1 0 2 0-6 years 4 4 4 12 7-15 years 2 4 4 10 16-60 years 24 26 25 75 Over 60 years 5 5 7 17 3.2.2 Population Composition 35. The 35 sample households have a total population of 114, including 56 females, accounting for 49%; 58 males, accounting for 51%, and 79 rural laborers, accounting for 69.3%. 3.2.3 Age Structure 36. Among the 114 samples, 12 are aged 0-6 years, accounting for 10.53%; 10 aged 7-15 years, accounting for 8.77%; 75 aged 16-60 years, accounting for 65.79%; and 17 aged above 60 years, accounting for 14.91%. Young people and adults account for over a half in total. 3.2.4 Educational Level 37. Among the 114 samples, 5 have received junior college or above education, accounting for 4.39%; 11 have received senior high / secondary technical school education, accounting for 9.65% (mostly aged 25-40 years and working outside); 43 have received junior high school education, accounting for 37.73%; 41 have received primary school education, accounting for 35.96% (mostly aged above 40 years), and two are illiterate or semiliterate (excluding pre-school children), accounting for 1.75% (mostly old people aged above 60 years). 3.2.5 Labor Employment 38. The sample households have 79 laborers in total, mostly aged 20-60 years, in which 18 laborers do casual jobs locally, mostly in the slack season, accounting for 22.78% of labor force; 14 work locally all the year round (mostly aged 40-45 years), accounting for 17.72%; 21 work outside all the year round (mostly aged 25-35 years and working in couples), accounting for 26.58%, and 26 do farm work at home (mostly aged above 40 years), accounting for 22.81%. 16

3.2.6 Annual Household Income and Expenditure 39. In the subproject area, agricultural income accounts for about 30% of gross income, and nonagricultural income for about 70%, in which agricultural income is from stockbreeding, crop cultivation (vegetables, rape, sorghum, etc.) mainly, while nonagricultural income is from employment, sideline operations, commercial income, social insurance premiums, etc. In addition, nonproductive expenses account for 75% of gross household expenditure. Annual household income Annual household expenditure Table 3-7 Annual Household Income and Expenditure Item Average per household (yuan) Percent Agricultural income 21677 30% Nonagricultural income 49999 70% 1) Employment income 41848 58% 2) Other income 8151 11% Total 71676 100% Productive expenses 12200 25% Nonproductive expenses 37512 75% 1) Food expenses 25648 68% 2) Traffic expenses 2740 7% 3) Educational expenses 5844 16% 5) Medical expenses 2344 6% 6) Other expenses 936 2% Total 49712 100% 3.3 Basic Information of Affected Individual Businesses 40. All the 4 individual businesses affected by the Subproject deal with fish culture. Their basic information is as follows: 41. Yuan Shizhong, male, 56 years, is a villager of Liangfengya Village, Banqiao Town. He rents 5 mu of fishpond for fish culture at 500 yuan/mu per annum, with an annual output of 400kg. His household income is from his son s employment mainly, and fish culture income accounts for 5% of gross household income only. 1.3 mu of his fishpond will be affected by the Subproject. 42. Zhang Yaoyuan, male, 50 years, is a villager of Benzun Village, Banqiao Town. He rents of 30 mu of fishpond for fish culture at 800 yuan/mu per annum, with an annual output of 10,000kg and an annual profit of about 100,000 yuan. In addition, he also raises 110 live pigs and 70 ducks. His household income is almost completely from fish culture and stockbreeding.3 mu of his fishpond will be affected by the Subproject. 43. Ding Fujie, male, 55 years, is a villager of Yufeng Village, Sanjiao Town. He rents 5 mu of fishpond for fish culture at 300 yuan/mu per annum, with an annual output of 500kg, and also uses 8 mu of cultivated land for crop cultivation. His household income is mostly from fish culture, farming and employment, in which fish culture income accounts for about 20%. 2 mu of his fishpond will be affected by the Subproject. 44. Xie Xiuyun, male, 69 years, is a villager of Yufeng Village, Sanjiao Town. He rents 5 mu of fishpond in Huabei Group for fish culture at 200 yuan/mu per annum, with a harvest of about 1,000kg every 2-3 years. In addition, he farms on a small piece of cultivated land. His household income is from his son s employment mainly, and fish culture income accounts for 2% of gross household income only. 2 mu of his fishpond will be affected by the Subproject. Table 3-8 Basic Information the Affected Individual Households Business Type Address Basic information Business 17

owner Nature Size (mu) Operating period (year) Annual output Annual profit (0,000 yuan) status Yuan Shizhong Fish Liangfengya Private 5 3 400kg 0.32 Ordinary Zhang Yaoyuan Fish Benzun Private 30 4 10,000kg 10 Good Ding Fujie Fish Private 5 30 500kg 0.5 Good Wangfeng Xie Xiuyun Fish Private 5 8 300kg 0.24 Ordinary 18

4 Legal and Policy Framework 4.1 Regulations and Policies on Resettlement 45. The policies of the Subproject have been formulated in accordance with the laws and regulations of the People s Republic of China (PRC) and Chongqing Municipality. The resettlement work of the Subproject will be conducted in strict conformity with the policies in the RAP, and any change during implementation has to be approved by the Bank. See Table 4-1. Table 4-1 Summary of Applicable Regulations and Policies Level Policy document Effective date Land Administration Law of the PRC August 28, 2004 Notice on Issuing the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) November 3, 2004 Regulations of the Ministry of Land and Resources on Public Hearing on Land and Resources May 1, 2004 Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) October 21, 2004 Notice of the State Council on Issues Concerning the Strengthening of Land Control and Adjustment (SC [2006] No.31) August 31, 2006 Notice of the General Office of the State Council on Forwarding the Guidelines State of the Ministry of Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (SC April 10, 2006 [2006] No.29) Notice on Adjusting Fees for Using Additional Construction Land (CZ [2006] No.48) November 7, 2006 Real Right Law of the PRC March 16, 2007 Notice of the Ministry of Labor and Social Security, and Ministry of Land and Resources on Doing a Good Job in Social Security for Land-expropriated April 28, 2007 Farmers Practically (MLSS [2007] No.14) Notice of the Ministry of Land and Resources on Doing a Better Job in LA Management (MLR [2010] No.238) June 26, 2010 Land Administration Regulations of Chongqing Municipality (Decree No.53 of the Chongqing Municipal Government) March 22, 1999 Land Acquisition Compensation and Resettlement Measures of Chongqing Municipality (Decree No.55 of the Chongqing Municipal Government) January 1, 1999 Interim Measures of Chongqing Municipality for Basic Endowment Insurance Chongqing for Farmers Converted into Urban States in Land Acquisition after January 1, January 1, 2008 Municipality 2008 Notice of the General Office of the Chongqing Municipal Government on Strengthening Land Acquisition and House Demolition Management Practically (CMGO [2013] No.27) Notice of the Chongqing Municipal Government on Further Adjusting Land Acquisition Compensation Rates (CMG [2013] No.58) January 1, 2013 Yongchuan Notice of the Yongchuan District Government on Further Adjusting Land District Acquisition Compensation Rates (YDG [2013] No.45) March 18, 2014 Operational Policy OP4.12 on Involuntary Resettlement, and Bank Procedure World Bank BP4.12 on Involuntary Resettlement and appendixes January 1, 2002 4.2 State Laws and Regulations Land Administration Law of the PRC (2004) 46. Any organization or individual that need land for construction purposes should apply for the use of land owned by the State according to law. 47. Whereas occupation of land for construction purposes involves the conversion of agricultural 19

land into land for construction purposes, the examination and approval procedures in this regard shall be required. 48. Whereas agricultural land is converted into construction purposes as part of the efforts to implement the general plans for the utilization of land within the amount of land used for construction purposes as defined in the general plans for cities, villages and market towns, it shall be approved batch by batch according to the annual plan for the use of land by the organs that approved the original general plans for the utilization of land. The specific projects within the scope of land approved for conversion shall be approved by the people's governments of cities or counties. 49. In acquiring land, compensation should be made according to the original purposes of the land acquired. Compensation fees for land acquired include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. 50. Whereas the land compensation fees and resettlement fees paid according to the provisions of the second paragraph of this article are not enough to maintain the original level of living, the resettlement fees may be increased with the approval of the people's governments of provinces, autonomous regions and municipalities. But the combined total of land compensation fees and resettlement fees shall not exceed 30 times the average output value of the three years prior to the acquisition. Notice on Issuing the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) Provisions on the resettlement of land-expropriated farmers: 51. Agricultural resettlement. When rural collective land out of urban planning areas is acquired, land-expropriated farmers shall be first provided with necessary arable land using mobile collective land, contracted land turned over by contractors and arable land arising from land development so that they continue to pursue agricultural production. 52. Reemployment resettlement. Conditions shall be created actively to provide free labor skills training to land-expropriated farmers and place them to corresponding jobs. Under equal conditions, land users shall first employ land-expropriated farmers. When rural collective land within urban planning areas is acquired, land-expropriated farmers shall be included in the urban employment system and a social security system established for them. 53. Dividend distribution resettlement. When any land with long-term stable income is to be used for a project, the affected rural collective economic organization may become a project shareholder with compensation fees for land acquisition or rights to use construction land in consultation with the land user. The rural collective economic organization and rural households will receive dividends as agreed. 54. Non-local resettlement. If basic production and living conditions are not available locally to land-expropriated farmers, non-local resettlement may be practiced under the leadership of the government in consultation with the rural collective economic organization and rural households. Provisions on information disclosure and supervision: 55. Land acquisition approval shall be disclosed. For any land acquired with approval according to law, the Ministry of Land and Resources, and provincial land and resources department shall disclose land acquisition approval to the public through mass media except where any state secret is involved. The county (municipal) land and resources bureau shall disclose land acquisition approval to the affected village. Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) 20

56. Basic farmland shall be protected strictly, because basic farmland is the basis for national food safety. Once identified, basic farmland shall not be occupied by any organization or individual, or not be reused without the approval of the State Council. Any basic farmland occupied after approval shall be compensated for at the highest applicable rate. 57. Improving measures of compensation for land acquisition. County-level and above local people s governments shall take practical measures so that the standard of living of farmers affected by land acquisition is not reduced by land acquisition. Land compensation, resettlement subsidy and compensation for ground annexes and crops shall be paid in full and timely pursuant to law. If the land compensation and resettlement subsidy pursuant to the prevailing laws and regulations are insufficient to maintain the former standard of living of the farmers affected by land acquisition or to pay the social security expenses of farmers who lose all land due to land acquisition, the people s governments of provinces, autonomous regions and municipalities directly under the Central Government shall approve an increased resettlement subsidy. If the sum of the land compensation and the resettlement subsidy attains the statutory upper limit and is still insufficient to maintain the former standard of living of the farmers affected by land acquisition, local people s governments may pay a subsidy from the income from compensated use of state land. 58. Resettling land-expropriated farmers properly. County-level and above local people s governments shall take specific measures to guarantee long-term livelihoods of farmers affected by land acquisition. For projects with a stable income, farmers may become a shareholder using the right to use of land used for construction approved pursuant to law. Within the urban planning area, local people s governments shall bring farmers who lose all land due to land acquisition into the urban employment system, and establish a social security system; out of the urban planning area, in acquiring land collectively owned by farmers, local people s governments shall reserve necessary arable land or arrange appropriate jobs for farmers affected by land acquisition within the same administrative area; farmers without land who do not have the basic living and production conditions shall be subject to non-local resettlement. The labor and social security authorities shall propose guidelines for the employment training and social security systems for farmers affected by land acquisition as soon as possible. 59. Improving land acquisition procedures. During land acquisition, the ownership of collective land of farmers and the right to contracted management of farmers land shall be maintained. Before land acquisition is submitted for approval pursuant to law, the use, location, compensation standard and resettlement mode of the land to be acquired shall be notified to farmers affected by land acquisition; the survey results of the present situation of the land to be acquired shall be confirmed by rural collective economic organizations and farmers to be affected by land acquisition; if necessary, the land and resources authorities shall organize a hearing in accordance with the applicable provisions. The materials for notification to and confirmation by the farmers affected by land acquisition shall be taken as requisite materials for approval for land acquisition. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of farmers affected by land acquisition and land users. Approved matters of land acquisition shall be disclosed unless in special cases. 60. Strengthening Supervision over the implementation of land acquisition. If the compensation and resettlement for land acquisition has not been implemented, the acquired land shall not be used forcibly. The People s governments of provinces, autonomous regions and municipalities directly under the Central Government shall formulate the procedures for the distribution of the land compensation within rural collective economic organizations on the principle that the land 21