Puxi Section Project Resettlement Action Plan

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Puxi Section Project of Southern Transportation Trunk Perfecting Project of Bailonggang Area, Shanghai Funded by World Bank Southern Transportation Trunk Perfecting Project for Sewage Treatment in Bailonggang Area, Shanghai Puxi Section Project Resettlement Action Plan Shanghai Urban Drainage Corporation August 2008 RP707 V3 1

Endorsement Letter for the Resettlement Plan Shanghai Municipal Government has applied for a loan from WB to finance Shanghai Southern Transportation Trunk Perfecting Project for Sewage Treatment Bailonggang Area. Therefore, the Project must be implemented in compliance with ADB safeguard requirements. This Resettlement Plan is prepared in accordance with the laws of the PRC, Shanghai Municipality, as well as WB s Policy on Involuntary Resettlement and it constitutes the basis for land acquisition, house demolition and resettlement of the project. Shanghai Municipal Government hereby confirms the content of this Resettlement Plan and will guarantee the land acquisition, compensation and relocation budget being provided according to the provisions of this Resettlement Plan. This Resettlement Plan is based on the feasibility study report and the initial surveys. If the final implemented components are different from the contents described in the feasibility study report and that will cause the substantial impact on the Resettlement Plan, this Resettlement Plan should be future modified and approved by WB before its implementation. Shanghai Municipal People s Government (Signature) (Date) 2

Preface I. The objective of Resettlement Action Plan 1 This Resettlement Action Plan is formulated on the basis of the laws, regulations and policies of the People s Republic of China, and Local Government as well as the Guidelines of the World Bank (Operational Directive for Involuntary Resettlement OP 4.12). The purpose of this document is to set out an Action plan for the Resettlement and Rehabilitation of the Displaced persons (DPs) to ensure that they will benefit from the project and their standards of living will be improved or at least be restored after the project impact. II. Definition of Relative Terms DPs 2 Criteria for Eligibility. Displaced persons may be classified in one of the following three groups: a b those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); 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 resettlement plan; and c Those who have no recognizable legal right or claim to the land they are occupying. 3 Persons covered under 2(a) and 2(b) are provided compensation for the land they lose and other assistance. Persons covered under 2(c) are provided resettlement assistance in lieu of compensation for land they occupy and other assistance, as necessary, to achieve objectives set out in this policy, if they occupy the project area prior to a cut-off date established by the borrower and acceptable to the World Bank 1. Those who encroach on this area after cut-off date are not entitled to the compensation or any other resettlement assistance. All persons included in 2(a), 2(b) and 2(c) are provided compensation for loss of assets other than land. Compensation and Resettlement Measures 4 In order to address the impacts caused by compulsive land acquisition resulting in (i) relocating or loss of shelter; (ii) lost of assets or access to assets; (iii) loss of income source or means of livelihood, wheatear or not the affected persons must move to another location, an RAP or Resettlement Policy Framework (RPF) should be prepared that covers the following: a The resettlement plan or resettlement policy framework includes measures to ensure DPs are i ii Informed about their options and rights pertaining to resettlement; Consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and 1 Normally, the cut-off date is the date the census begins. The cut-off date could also be the date the project area 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. 3

b c i iii Provided prompt and effective compensation at replacement cost 2 for losses of assets attributable directly to the project. if the impacts include physical relocation, the resettlement or resettlement policy framework should include measure to ensure that the displaced persons are ii i provided assistance (such as moving allowance) during the relocation; provided with residential house, or house sites, as required, agricultural sites for which a combination of productive potential, location advantages, and other factors is at least equivalent to the advantages of the old site. Where necessary to achieve the objectives of the policy, the resettlement plan or resettlement policy framework also include measures to ensure that displaced persons are 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; ii 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: the date in this project refers to the date that bulletin of land acquisition and house demolition is issued. DPs are not allowed to build new house, expand the building, rebuild, change the usage of house and land, lease land, or rent/bargain the house. Besides, persons moving into project areas after this date are not entitled to be compensated. 2 Replacement Cost means the method of valuing assets to replace the loss at market value plus any transaction costs. When this method is adopted, the depreciation of construction and property is left out of account. 4

Abbreviations AAOV Average Annual Output Value APs Affected Persons DPs Displaced Persons DI Design Institute FSR Feasibility Study Report IA Implementation Agency M&E Monitoring and Evaluation PAPs Project Affected Persons PRC People s Republic of China RAP, RP Resettlement (Action) Plan RIB Resettlement Information Booklet RPF Resettlement Policy Framework STTP Southern Transportation Trunk Project STTPP Southern Transportation Trunk Perfecting Project SPMO Shanghai Project Management Office WB World Bank mm Millimeters % Percentage mu Chinese Area Unit of Land, 1 mu = 1/15 ha (1 ha = 15 mu) Yuan Chinese Current unit of Money, 1 Yuan = 1/7 dollar (1 dollar = 7 Yuan ) 5

CONTENT 1 PROJECT INTRODUCTION... 1 1.1 BRIEF INTRODUCTION... 1 1.2 BENEFICIAL AND AFFECTED AREAS OF PROJECT... 2 1.2.1 Beneficial Areas... 2 1.2.2 Affected Areas... 2 1.3 SOCIAL ECONOMIC BACKGROUND OF PROJECT AFFECTED AREAS... 3 1.4 TOTAL INVESTMENT AND CAPITAL SOURCE... 5 1.5 MEASURES TO AVOID AFFECTS... 5 1.6 LINKAGE PROJECTS... 6 2 PROJECT IMPACTS... 7 2.1 PROJEC IMPACT SURVEY... 7 2.2 PROJECT IMPACT SCOPE... 7 2.3 PERMANENT STATE-OWNED LAND OCCUPATION... 8 2.4 TEMPORARY LAND OCCUPATION... 8 2.5 AFFECTED ENTERPRISES... 9 2.6 AFFECTED UNLICENSED STRUCTURE... 9 2.7 AFFECTED POPULATION... 9 2.8 AFFECTED INFRASTRUCTURE AND GROUND ATTACHMENTS...10 3 ANALYSIS ON RESETTLEMENT IMPACTS...11 3.1 IMPACTS ANALYSIS ON TEMPORARY LAND ACQUISITION...11 3.2 IMPACTS ANALYSIS ON ENTERPRISES...11 4 LEGAL AND POLICY FRAMEWORK...13 4.1 LAWS AND POLICIES REFERRED IN RESETTLEMENT...13 4.2 RESETTLEMENT POLICIES OF THE PROJECT...13 4.2.1 Resettlement Policy of Demolished Enterprise...13 4.2.2 Compensation Policy for Affected Ground Attachments...15 5 COMPENSATION STANDARD...16 5.1 COMPENSATION STANDARD FOR STATE-OWNED LAND...16 5.2 COMPENSATION FOR TEMPORARY LAND ACQUISITION...16 5.3 COMPENSATION FOR HOUSE DEMOLITION...17 5.3.1 Rural non-residential house...17 5.3.2 Urban non-residential houses...17 5.4 COMPENSATION FOR THE IMPACTS ON ENTERPRISES PRODUCTION AND OPERATION...17 5.5 COMPENSATION STANDARD FOR INFRASTRUCTURES...18 5.6 OTHER COMPENSATION STANDARD...18 6 RESETTLEMENT SCHEME...20 6.1 RESETTLEMENT OBJECTIVES...20 6.2 RESETTLEMENT PRINCIPLES...20 6.2.1 Principle of Reducing Resettlers as much as possible...20 6.2.2 Principle of Equally Compensating...20 6.2.3 Principle of Focusing on Emphasis...21 6.3 RESTORATION OF TEMPORRILY-OCCUPIED LAND...21 6.4 RESETTLEMENT FOR NON-RESIDENTIAL HOUSES DEMOLITION...22 1

6.4.1 Demolished enterprises...22 6.5 AFFECTED INFRASTRUCTURE AND GROUND ATTACHMENT...23 7 PUBLIC PARTICIPATION...25 7.1 PUBLIC PARTICIPATION AND STRATEGY...25 7.2 PUBLIC PARTICIPATION PROCESS AND POLICY DISCLOSURE...25 8 GREIVANCE AND COMPLAINT PROCEDURE...27 9 INSTITUTION...28 9.1 RESETTLEMENT AGENCY...28 9.2 ORGANIZATION CHART...30 9.3 RESPONSIBILITIES...31 9.3.1 Shanghai Develope and Reform Committee, Shanghai Construction and Management Committee & Shanghai Water Affairs Bureau...31 9.3.2 Shanghai Urban Drainage Co., Ltd...31 9.3.3 Shanghai Urban Planning and Adminisitration Bureau & Shanghai Housing and Land Administration Bureau...31 9.3.4 Demolition Management Office and water affair bureau of Districts...32 9.3.5 Shanghai Municipal Designing Institution...32 9.3.6 Resettlement Monitoring Agency...32 9.4 ORGANIZATION ABILITY AND STAFFING...33 9.5 MEASURES FOR STRENGTHENING INSTITUTIONAL CAPACITY...33 10 TABLE OF IMPLEMENTATION SCHEDULE...35 10.1 PRINCIPLE OF PROGRESS JOINT OF RESETTLEMENT AND CONSTURCTIO...35 10.2 TIMETABLE OF KEY TASKS IN RESETTLEMENT IMPLEMENTATION...35 10.2.1 Principles of Scheduling...35 10.2.2 Overall Schedule of Resettlement...36 11 EXPENSE AND BUDGET...38 11.1 EXPENSE...38 11.2 ANNUAL CAPITAL UTILIZING PLAN...40 11.3 RESETTLEMENT CAPITAL RESOURCE...40 11.4 CAPITAL FLOW AND ALLOCATION PLAN...40 11.4.1 Capital Flow...40 11.4.2 Allocation and Management...41 12 MONITORING AND EVALUATION...42 12.1 INTERNAL MONITORING...42 12.1.1 Implementation Procudures...43 12.1.2 Monitoring Content...43 12.1.3 Internal Monitoring Report...43 12.2 EXTERNAL MONITORING AND EVALUATION...43 12.2.1 Independent Monitoring Institute...43 12.2.2 Monitoring Procedure and Contents...44 12.3 MONITORING INDICATOR...45 12.4 POST EVALUATION...46 13 ENTITLEMENT MATRIX...47 APPENDIX1. PROJECT SKETCH MAP...49 APPENDIX2. EXTERNAL MONITORING AND EVALUATION FRAMEWORK...50 APPENDIX3. RESETTLEMENT INFORMATION BOOKLET...52 2

TABLE LIST TABLE 1-1 SUMMARY OF PROJECT RESETTLEMENT IMPACTS... 2 TABLE 2-1 VILLAGES AFFECTED BY THE PROJECT... 7 TABLE 2-2 LIST OF TEMOPRARY COLLECTIVE OCCUPATION... 8 TABLE 2-3 LIST OF TEMPORARY STATE-OWNED LAND OCCUPATION... 8 TABLE 2-4 LIST OF AFFECTED ENTERPRISES... 9 TABLE 2-5 LIST OF AFFECTED POPULATION...10 TABLE 2-6 AFFECTED INFRASTRUCTURE AND GROUD ATTEACHMENTS...10 TABLE 3-1 EFFECT TO EACH ENTERPRISE...12 TABLE 5-1 COMPENSATION STANDARD OF RURAL NON-RESIDENTIAL HOUSES...17 TABLE 5-2 COMPENSATION STANDARD OF URBAN NON-RESIDENTIAL HOUSE...17 TABLE 5-3 COMPENSATION STANDARD FOR INFRASTRUCTURES...18 TABLE 5-4 RELEVANT COST AND FEE...18 TABLE 7-1 PUBLIC PARTICIPATION PROCESS OF AFFECTED POPULATION...25 TABLE 7-2 POLICY DISCLOSURE PROCESS...26 TABLE 9-1 STAFFING OF THE RESETTLEMENT INSTITUTES INVOLVED IN THE PROJECT...33 TABLE 10-1 SCHEDULE FOR LAND ACQUISITION AND HOUSE DEMOLITION...37 TABLE 11-1 BUDGET FOR RESETTLEMENT COMPENSATION...38 TABLE 11-2 ANNUAL INVESTMENT PLAN...40 TABLE 13-1 ENTITLEMENT MATRIX...47 Chart List CHART 8-1 GRIEVANCE AND COMPLAINT PROCEDURE...27 CHART 11-1 CAPITAL FLOW...41 1

Project introduction Brief Introduction According to latest investigation data, sewage quantity increased faster in Bailonggang area, Shanghai in recent years. The inflow discharge of Bailonggang Sewage Treatment Plant would be 1900 thousand m 3 /d until 2008. The situation above proves that the collecting sewage quantity of Bailonggang has exceeded the designed trunk scale which is 1721 thousand m 3 /d. (Feasibility Study Report, 2008). To develop economy, environmental protection should be top-priority. With a new round development and opening of Shanghai, and rapid development of urban construction, the increasing sewage quantity of Pudong New Developed District, Minhang, Nanhui and other area is in a dire need of an outlet, so it has no time to delay to improve the discharge ability of sewage trunk line in Bailonggang area. In order to provide necessary environment capacity and self-contained infrastructure for local economy development, then improve the regional water environment quality, and accelerate the harmony development of economy and environment, Southern Transportation Trunk Project (STTP) has been the urgent affair of optimizing and improving sewage treatment system in Bailonggang area. The service region of STTP belongs to Bailonggang area, of which, the north is in the southern side of Zuyuan, the west is in the Minhang boundary, the south is in the Minhang boundary and Nanhui airport express way, the east is in the Changjiang River. The area of service region is 1255km 2, and the population is 7120 thousands. STTP includes Western Section Project of Southern Trunk and Southern Trunk Transportation Perfecting Project (STTPP). Presently the western section project has been completed and connected with middle trunk to the Bailonggang Sewage Treatment Plant. Because the actual sewage quantity has disparity with the planning, the eastern section project of southern trunk is suspended. STTPP in Bailonggang area) includes eastern section project and Puxi River-Crossing Pipe and the connection pipe. The purpose of STTPP is to perfect the southern transportation trunk. The project will start from June, 2009, and end in 2012. STTPP could be divided into 2 parts: Puxi Section Project, including Puxi River-Crossing Pipe, the connecting pipe, and the pumping station; Pudong Section Project, including East Section of Southern Transportation Trunk and Pudong collecting branches. Shanghai Urban Drainage Corporation, as the project owner, plans to apply World Bank loan to Puxi Section Project, and compile Resettlement Action Plan (RAP). As to Pudong Section project, 1

construction would be done with domestic capital, however, the project scope has not been confirmed, and so Resettlement Policy Framework (RPF) is compiled. Beneficial and Affected Areas of Project Beneficial Areas Beneficial areas of Puxi river-crossing pipe, connecting pipe, and rivercrossing pump station include: Shanghai Shanghai is making effort to be a national sanitary city, the main standard of which is a good environment protection, including solid waste treatment, sewage treatment, air pollution control and noise control. STTP will create favorable conditions to improve the rate of piped sewage after its construction, so that it could reduce quantity of sewage discharged into Inland River; achieve the goal of improving Inland River s water quality. STTP has a significant meaning for upgrading the whole sanitary environment of Shanghai, and provides good conditions for creating national sanitary city. Puxi Central Urban Area Because the discharged sewage from the sixth anabranch and Wumin has exceeded the designed scale, sewage from Puxi has no way to cross Huangpujiang River, and only could be discharged into Huangpujiang which is polluted gravely. STTPP would solve the sewage discharged into Huangpujiang in the rain season in this area completely, and have a very important meaning for improving the water quality in Huangpujiang. Affected Areas The impacts of land acquisition and house demolition in Puxi Section Project involve 3 districts of Shanghai: Minhang, Xuhui and Pudong New Area. Table 0-1 Summary of Project Resettlement Impacts District Minhang Xuhui Pudong Subtotal Remark Township/Street 1 1 1 3 Ã Village 1 1 2 Ã Permanent State-owned Land Acquisition Mu 11 11 Ã Temporary Land Acquisition State-owned Land m² 625 1625 4300 Collective Land m² / 1125 800 Of which Farmland 6550 about 9.8 Mu 1925 about 2.9 Mu Including virescence belt & national roads Non-agricultural land but for construction 2

District Minhang Xuhui Pudong Subtotal Remark Affected Enterprises House Demolition m 2 175 2110 2285 Ã Auxiliary Construction m 2 3345 3345 Ã Affected Enterprises 1 4 5 Ã Affected Population 3 18 21 Ã Total Affected Population Ã 3 18 / 21 Ã Social Economic Background of Project Affected Areas Minhang Minhang District, located in the southwestern part of Shanghai, is shaped like a key. Situated in 31.05 N and 121.25 E, the district is bordered on the eastern side of Xuhui District, Pudong New Area and Nanhui District. It meets Songjiang and Qingpu Districts in west and Changning and Jiading Districts in east. Hongqiao international Airport is within the district s borderline. The Wusong River and Huangpu River also run through the district. Minhang is an important traffic transit hub, a big industrial base in the city s southwest and an emerging center of scientific technology and aerospace industry. Minhang s area accounts for 5.86 percent of Shanghai and its permanent population is about 10 percent of Shanghai.Its gross regional product accounts for 8.2 percent, ranked the third in the city. Minghang is an important base of equipment and manufacturing industry and a center of information technology. Its secondary and tertiary industries are developing quickly in the recent years. The district s main economic index is always among the tops in Shanghai, No.2 in its fiscal revenues, No.3 in the value-added of Industry, No.4 in the total social retail sales of consumer goods, No.2 in investment absorption and No.1 in sales of newly-built real estate. Minhang District administers nine towns, one city-rated industrial park and three sub districts with a total of 163 villagers committees and 311 residents committees. By the end of last year, the district s population is 885.8 thousand, 15.2% more than the previous year. About 778 thousand are city dwellers, 6.5% more than the previous year. In 2007, the added value of the whole district was 97.6 billion Yuan, 15.2% increased by the previous year; financial gross income was 27.22 billion Yuan, 19.6% increased by, including district financial income of 8.57 billion Yuan, 25.4% increased; total industrial value of 333.5 billion Yuan, 10.1% increased; and total retail sale of consumer goods 27.4 billion Yuan, 16% increased by the 3

previous year. Xuhui Xuhui is one of the central urban zones of Shanghai, with an area of 54.8km and a resident population of 1.06million. 12 colleges including Jiao Tong University, Medical College of Fudan University and 117 scientific research institutions including Shanghai Branch of Chinese Academy of Sciences are located here. Commercial development has shown a good trend. Residents consumption ability is obviously improved; consumption on cars, communication products and goods related to housing is further enlarged. Commodity structure is adjusted in business circle of Xujiahui Area and attention is paid to the economic benefits. Total retail sale of consumer goods is total to be 6.075 billion Yuan finished by Shopping malls such as Ganghui, Dongfang, Liubai, Huijin, the Pacific, and Huilian and computer markets such as the Pacific and Bainaohui. Commerce develops fast. District economy keeps a fast development and economic structure is further optimized. The annual gross production value of the district is 65.059 billion Yuan, 12.5% increased in terms of comparable price and increase amplitude 3.3 percentage points more than the previous year (see chart 1). Effective progress is made in the adjustment of district economical structure. Added value of the secondary industry is 15.886 billion Yuan, 5.6% increased; added value of the tertiary industry is 49.173 billion Yuan, 14.9% increased. The increase amplitude of added value of the tertiary industry is 9.3 percentage points more than the secondary industry and 2.4 percentage points more than the district economy. Structure proportion of the secondary industry to the tertiary industry is 24.4:75.6. Production value of the tertiary industry is increased by 1.3% to the previous year. Pudong Pudong New Area lies in the east of Shanghai and Yangtze River delta, with Changjiang estuary to the east, Nanhui and Minghang on the south, and Huangpu River on the west and north opposite to Xuhui, Luwan, Huangpu, Hongkou, Yangpu and Baoshan. Urban comprehensive function of Pudong New Area is quickly improved in the last 10 more years of Reform and Opening. 4 national development zones are taken as the main carrier and promote the function development. National economy grows sustain ably and rapidly, with production value increased from 6 billion Yuan in 1990 to 210 billion Yuan in 2005 and doubling that for 2000. The average annual growth rate of district total production value 4

is higher than 15%. New industry system, with advanced manufacturing industry and modern service industry as the leading factor, gets further improved with its gross industrial output value beyond 420 billion Yuan (1/4 of gross industrial value of Shanghai). Among it, the added value of the tertiary industry accounts for 49% or so of the output value. In 2005, total retail sale of consumer goods broke through 40 billion Yuan, and the total volume of foreign export and import amounted to 90 billion dollars, including export trade volume of 37.2 billion dollars. Total investment and Capital source STTPP is a project of urban infrastructure, for which Shanghai City Government takes the responsibility of construction. The construction fund is made up of domestic fund and Word Bank loan. The total investment of STTPP is 438.5 million Yuan, of which the resettlement cost is 36.57 million Yuan 8.3% of the total, and the resettlement cost is from domestic fund. Measures to Avoid Affects In the period of project planning and designing, in order to decrease the impacts to local socio-economic induced by the project; some effective measures are taken by designing institution and project owner: A In the period of project planning, while choosing and comparing optimization options, they tried best to consider the impacts on local socioeconomic, and took it as key factor for comparing optimization options.2 schemes are made for route of Puxi River-Crossing Pipe: one is laid along Laomin Road to Huajing Road ; the other is laid along South Road of Meinan to Fanghe Road. Through comparison, the first scheme is chosen, for its demolition and environment impact is less than the second. B Optimization design. To reduce demolition and resettlement, pipejacking construction is adopted in the whole project, no road-surface excavation included. The site for all the working wells is selected far away from house and cultivated land as much as possible. For those affecting house, the site are chosen in the non-body part of the house, such as fencing wall, flooring and so on. C In July, 2008, pipeline designing scheme was readjusted and feasibility research report was renewed. Collective land acquisition in Linjiang village, Sanlin Town in Pudong New Area in the previous designing scheme is avoided and resettlement impact is reduced. In the period of resettlement action plan and implementation, once land 5

acquisition and house demolition cannot be avoided, following measures should be taken to decrease affects on local community: A To strengthen collection of basic information, and make further analysis of local socio-economic actuality and future development, and formulate feasible resettlement action plan combining with local real condition, so it can guarantee DPs don t make a loss due to project. B To encourage public participation and accept the supervision from the mass. In the compilation of RAP, suggestions of different parties are accepted, especially those of the affected units and persons. C To emphasize internal and external monitoring, and set up effective and smooth feedback mechanism and channel, try all best to shorten the period of information treatment, in order to safeguard all kinds of issues, emerging in construction implementation, would be settled timely. Linkage Projects Sewage collected by the completed trunk in Puxi Section Project will be drained to Bailonggang Sewage Treatment Plant along Southern Transportation Trunk including Eastern Section of Southern Trunk which will be constructed by Pudong Section Project, therefore, Pudong Section Project is linked with Puxi Section Project on their function. The total investment in Pudong Section is 3290.3283 million Yuan with a domestic construction and investment. The project is planned to begin in 2010 and be put into operation in the end of 2012. So, resettlement policy frame is compiled for Pudong Section Project. 6

Project Impacts Project Impact Survey In April, May and July, according to the requirement of World Bank, Shanghai Urban Drainage Corporation organized together a special investigating group to investigate the impacts of land acquisition and house demolition caused by the project. The mode of combination of investigating households one by one and interview are adopted. It covers the quantity of affected households, family population, condition of affected enterprises and institutes, condition of shops and resettlement option. When the survey was carried out, displaced persons participated in the whole process. The opinions on land acquisition and resettlement of village committee and villagers are taken into consideration and wide discussion is carried out also. Project Impact Scope The project is concerned about 3 administration districts of Shanghai (Minhang, Xuhui and Pudong), shown in Table 0-1. In August, 2008, according to the latest changing, resettlement investigation team investigated the resettlement impacts of the newly-adding pipeline along Changhua Road. Because pipe-jacking construction measure is adopted, and the working wells having been designed could also be used for the construction of this section, it is affirmed there is no resettlement impacts.,psdfw 7\SH /DQG $FTXLVLWLRQ $UHD 0X Table 0-1 Villages affected by the project 3HUPDQHQW/DQG$FTXLVLWLRQ $IIHFWHG +RXVHKROG $IIHFWHG 3RSXODWLRQ 3HUVRQ $IIHFWHG (QWHUSULVHV /DQG $FTXLVLWLRQ $UHD P 7HPSRUDU\/DQG$F $IIHFWHG +RXVHKROG $I 3RSXODWL %DLORQJJDQJ6RXWKHUQ7UXQN6HZHU 2IZKLFK 3X[L&URVVLQJDQG&RQQHFWLRQ3LSH%DQN)LQDQFHG 0LQKDQJ ;XKXL 3XGRQJ 3XGRQJ6HFWLRQ )65LVQRWILQDOO\DSSURYHGVRWKHUHVHWWOHPHQWLPSDFWVFRXOGQRWEH 7RWDO 7

Permanent State-Owned Land Occupation 11 Mu state-owned lands are occupied permanently by river-crossing pump station of Puxi Section Project. The site is selected in Huajing Harbor on the side of Huangpujiang River which now has been programmed as ecological and greening land. Temporary Land Occupation Temporarily occupied land in this project is caused by the pavement for working wells. Both collective land and state-owned land are temporarily occupied, including 1925 m2 (about 2.9 Mu) temporary collective land occupation, in Table 0-2; and 6550 m2 (about 9.8 Mu) state-owned land, in Table 0-3. Project Name Puxi Rivercrossing and connection pipe Table 0-2 List of Temporary Collective Occupation Collective Non-agricultural Working land (m 2 ) District Town Village Well Construction Virescence Land Belt Laomin Rd. 2# Huajing Xuhui Huajing Huapu Rd. 3# Linpu Rd. 1# Linpu Rd. Pudong Sanlin Linjiang 2# 625 None 500 None 400 None 400 None Total 1125 800 None Affected Population Table 0-3 List of temporary state-owned land occupation Project Name Working Well District state-owned land (m 2 ) Road Virescence Belt Other Affected Unit Laomin Rd. 1# Minhang 625 Meilong Gas Station Huajing Rd. 1# 300 200 Xuhui Gym City Planning Huajing Rd. 2# Xuhui 400 100 and Gardening Puxi River-crossing Department and connection pipe Huajing Rd. 4# 625 Huajing Park Outer Ring Rd. 1# 200 800 Gardening Department Outer Ring Rd. 2# Pudong 200 800 Gardening Department Outer Ring Rd. 3# 100 2200 Gardening Department Total 1200 4525 825 8

Affected Enterprises 5 enterprises are affected by the project: 1 is in Minhang District, and 4 are in Xuhui District. 2 enterprises are on the collective land, and the other 3 are on the state-owned land. 2285 m2 houses are demolished, including 1100m2 storehouses, 1000m2 brick-mixed storied building, 155m2 brick-mixes bungalow, 30m2 simple houses. 3345m2 auxiliary buildings are demolished, of which 290m2 bounding wall, and 3055m2 grounds. Details could be seen in Table 0-4. Table 0-4 List of Affected Enterprises Project Name Puxi Rivercrossing and Connection Pipe Working Well Rd. Laomin Huajing Pump Station No. 1# 2# Enterprise Meilong Gas Station Shanghai Zhangqin Corporation Storehouse Main Building m 2 ) Brick-mixed Storied Building House Demolition Brick-mixed Bungalow Simple House 155 20 Auxiliary Building m 2 ) Bounding Wall Ground 600 100 1# Xuhui Gym 10 50 625 3# Linzhi Electric Corporation Shanghai Zhuan Corporation 500 300 1000 240 2030 Remark On the Stateowned land On the collective land On the Stateowned land On the collective land On the Stateowned land Total 1100 1000 155 30 290 3055 Affected Unlicensed Structure Unlicensed structure refers to those houses that are constructed privately without any relative licenses issued by house property department, or land department. Besides, overdue temporary structures also are involved. The resettlement investigation team affirms that there is no unlicensed structure in this project after field survey. Affected Population Through investigation, resettlement impact is little. One part of the 9

temporary land occupation is collective land; the other part is state-owned land, so there is no affected population. The enterprises demolition doesn t cause shutout and idleness, so only the managers and legal persons are affected. 5 enterprises and 21 persons are affected. Details could be seen in Table 0-5. Affected enterprises Table 0-5 List of Affected Population Item Shanghai Minhang Xuhui Pudong Subtotal Quantity 1 4 5 Of which Enterprises of which the houses are rented from village 0 2 2 Enterprises of which the houses are owned by the legal person and constructed in 1 2 3 state-owned land Affected Population 3 18 21 Of which Manager and Legal Person 3 18 21 Employee / / / / Affected Infrastructure and Ground Attachments There are 5 ground attachments affected by the project, including street trees, watch boxes, virescence belt, canals, and so on. See details in Table 0-6. Table 0-6 Affected Infrastructure and Ground Attachments Item Affected Infrastructure and Ground Attachments Name Unit Quantity Street trees / 8 Watch boxes set 1 Virescence belts m 2 3000 Communication cable (type of six) KM 12 High pressure electric pole / 1 Puxi Rivercrossing and Overhead pipeline Communication copper cable (type of 4) KM 0.1 Aerial cable (type of 4) KM 0.2 connection pipe Street lamp pole / 1 Aerial electric pole / 1 Water pipe (type of 300) KM 0.04 Underground pipeline Water pipe (type of 250) KM Communication copper cable (type of 2) KM 4 Electric cable (type of 2) / 2 10

Analysis on Resettlement Impacts To know project impacts, according to the requirements of the world bank, in May, 2008, investigation on land acquisition and house demolition were carried on to Puxi River-crossing and connection pipe project, by a special investigation team organized by Shanghai Urban Drainage Corporation and Shanghai Design Institute, and analyses were made to different resettlement impacts. During the process of resettlement impacts investigation, there is no minority population, and the investigation team affirmed no minority area in the project area. Impacts Analysis on Temporary Land Acquisition An area of 8475 m2 (12.7mu) is temporarily occupied in the project, including collective land 1925 m2 (2.9mu) and state-owned land 6550 m2 (9.8mu). Its temporary occupation period is below one year, and the land will be leveled and recovered immediately after construction. In the temporarily acquired collective land, 1125m2 is land for the tertiary industry, and 800 m2 is greenbelt. The houses on the affected land for the tertiary industry are all rent out for commercial use. For the amount of the affected land for the tertiary industry is little and it s dispersed, no stopproduction is caused to the impacted enterprises. The affected plants for greening etc. could be recovered with little effect. Road and greenbelt take the main part in the temporarily-occupied stateowned land, totally 5725 m2 8.6mu,the rest occupied land is the road or site of some enterprises, totally to be 825 m2 (1.2mu) based on the investigation. State-owned road and greenbelt could get immediate recovery after the occupation period and little impact is caused. Through on-site survey, no impact will be caused to the operation of the enterprises by the land occupation. Impacts Analysis on Enterprises Five enterprises are affected in the project, 2 of which rent rural collective housing for the tertiary industry, and the rest three of which are the direct property owner. Through investigation, houses of the 5 enterprises are little 11

affected, so no impact will be caused to its regular production or operation and no direct effect will be caused to its workers. House demolition of the affected 5 enterprises is divided into 2 parts: one is of the main body part and the other is of the auxiliary buildings (such as fencing wall and site). As to the main body part demolition: 4 enterprises are partly demolished, including houses, storehouse, or simple houses; and 1 enterprise which has been bankrupted is totally demolished. As to the auxiliary building demolition: all the 5 enterprises are involved, with only a little impact. Effect to each enterprise are shown in Table 0-1 Enterprise Meilong gas station Shanghai Zhangqing Commercial and Trade Co., Ltd. Xuhui Gymnasium Lingzhi Electrical Device Company Shanghai Zhuan Co., Ltd. Table 0-1 Impact to each enterprise Impact analysis Impact Main building Auxiliary building degree Partly demolished, the affected house is for storage. Storehouse is partly demolished. Simple house is partly demolished, which is used as doorkeeper pavilion. Simple house is partly demolished, which has been abandoned. Totally demolished Tiny Tiny Tiny Tiny Small Only part of the fencing wall and site with a small area is affected Impact degree Tiny Tiny Tiny Tiny Small 12

Legal and Policy Framework Laws and Policies Referred in Resettlement The Land Administration Law of P.R.C. (effective on January 1 1999, revised in August 28, 2004) The Urban Real Estate Administration Law of P.R.C. (effective on January 1, 1995) The Urban House Demolition Administrative Regulations (effective on January 1, 2001) Shanghai Implementation Measures on Land Administration Law of PRC (Shanghai government, No.41 in 2000) Implementing Rules of Shanghai Municipality for the Administration of Urban Houses Demolishment (Shanghai government, No.111 in 2001) The Measures of Rural House Demolition Management for Urban Construction in Shanghai (effective on February 1, 2000) The Measures of Granting Land Use Right in Shanghai (effective on October 30, 1996) Compensation Standard for Collective Land and property Acquisition in Shanghai (trial implementation) (Hu Fang Di zi [2005] No. 203) World Bank OP4.12 Involuntary Resettlement and Appendix (January 1 st 2002) Resettlement Policies of the Project All the resettlement policies carried out in this project are under resettlement policies of P.R.C, Shanghai People s Government and of the World Bank, Minhang District Government, Xuhui District Government, Pudong New Area Government and World Bank. Resettlement Policy of Demolished Enterprise Appraisal 13

The replacement price of demolished enterprises and establishments should be appraised by legal and qualified real estate evaluation institution. The compensation price of demolished houses should be made on the basis of benchmark price issued by the government when the House Demolition License is granted, considering house location, construction structure, construction area, floor, fitment and other elements. Before the appraisal price is confirmed, the appraisal institution should take the affected persons suggestion into consideration. Resettlement Policy Demolishing the enterprises of which the houses are rented from collective economic group s houses for tertiary industry: Through investigation, impact on enterprises of this type is little. After negotiation among project unit, village committees and enterprises, the monetary compensation would be adopt, and the compensation fund for building should be obtained by the village economic group who is the property owner. By affirming together, project owner and enterprise owners agree that resettlement is unnecessary because the project has no impact on the management and production activity. Because the land on which the enterprises houses are demolished is acquired temporarily, the project owner would entrust the construction units to recover the land, and the village economic group would resume the former buildings on the ground, when the construction is completed (might be 1 year). Demolishing the enterprises of which the houses are on the state-owned land and owned by the legal persons or managers: Through investigation, and after negotiation between project owner and principal of demolished enterprises, it is determined to adopting monetary compensate to the lightly demolished enterprises (except Shanghai Zhuan Co., Ltd.) Because the land on which the enterprises houses are demolished is acquired temporarily, the project owner would entrust the construction units to recover the land, and the enterprises themselves would resume the former buildings on the ground, when the construction is completed (might be 1 year) All the buildings of Shanghai Zhuan Co., Ltd. Would be demolished, 14

however, the monetary compensation would be adopt because the enterprise has been shutoff even before this project, and all the production and business activities are stopped. Compensation Policy for Affected Ground Attachments Affected infrastructure and ground attachment will be compensated by project construction institutes and be reconstructed by owners. Those that have brought into engineering project will be reconstructed by project construction institutes. 15

Compensation Standard The compensation standard is decided according to the above legal framework and actual conditions in the affected municipalities. Compensation Standard for State-owned Land Through investigation, the state-owned land to be permanently acquired has been programmed as ecological and greening land, so the land would be obtained by remising way. As to the land remising price, in the first half year of 2008, PMO negotiated with Shanghai Housing and Land Administration Bureau, Shanghai Planning Bureau, Shanghai Construction Committee and so on several times. Finally the remising price is determined as following. Remising price: 1600 thousand Yuan/Mu Compensation for temporary land acquisition The temporary land acquisition of this project involves rural collective land, enterprises land, and other state-owned land. By consulting with the affected collective economic groups, enterprises and relevant units, the compensation standard is made as follows: Rural collective land 3 Temporary land acquisition fee 24 Yuan/m 2 per year Minhang, Xuhui 22 Yuan/m 2 per year Pudong Common virescence compensation: 300 Yuan/ m 2 State-owned virescence belt According to compensation standard of temporary greenbelt acquisition in Shanghai Temporary land acquisition fee According to greenbelt of level 1 3 Yuan/ m 2 per year 3 For the rural land, no matter which type and usage of the land are, the compensation standard would be made according to vegetable land of 5 crops a year. It means the compensation standard would be calculated as 5 times of the young crops compensation standard of vegetable land. However, there is no young crops compensation for the land, because the affected land is not used for agricultural planting, but for tertiary industry. 16

Virescence belt compensation: 450 Yuan/ m 2 Compensation for house demolition Rural non-residential house Rural non-residential houses of this project include the houses on the collective land for the business activity of enterprises and shops. Because the land where the houses locate would not be permanently acquired, the demolished houses would only be compensated according to the buildings value. The detail compensated standard is made on the basis of Compensation Standard for Collective Land and Property Acquisition in Shanghai (trial implementation). See Table 0-1. Table 0-1 Compensation standard of rural non-residential houses Compensation Type Content Unit Standard Yuan/unit Brick-mixed bungalow M 2 526 Main Storehouse M 2 418 Building Simple house M 2 150 Fencing wall M 2 140 Auxiliary Building Ground M 2 82 Remark Urban non-residential houses Urban non-residential houses of this project include enterprises houses on the state-owned land. According to Implementing Rules of Shanghai Municipality for the Administration of Urban Houses Demolishment and the lowest compensation price of urban house demolition, the standard is made as follows: Table 0-2 Compensation standard of urban non-residential house Type District Standard Yuan/m 2 ) Main Building Xuhui 3700 Minhang 3590 Simple House 150 Fencing Wall 140 Ground 82 Compensation for the impacts on enterprises production and operation Because it is a type of pipeline project, the demolition would not cause stopping production to the enterprises, however, considering the construction period might be half a year to one year, the project management office decides 17

to give proper compensation which would be calculated by the demolished house area, after negotiating with affected units. The standard is made as follows: Enterprises on the collective land 250Yuan/m 2 Enterprises on the state-owned land 300Yuan/m 2 Compensation standard for infrastructures After the negotiation with relevant property owners, the compensation standard for infrastructures is made as following: Table 0-3 Compensation standard for infrastructures No. Name Unit Standard(Yuan/unit) 1 Street trees / 2500 2 Watch box / 50000 3 Overhead pipeline Ã Ã 3.1 Ventilation cable (type of six) KM 180000 3.2 High pressure electric pole / 200000 3.3 Communication copper cable (type of 4) KM 200000 3.4 Aerial cable (type of 4) KM 1200000 3.5 Street lamp pole / 230000 3.6 Overhead electric pole / 40000 4 Underground pipeline Ã Ã 4.1 Water pipe (type of 300) KM 1340000 4.2 Water pipe (type of 250) KM 1000000 4.3 Communication copper cable (type of 2) KM 240000 4.4 Electric cable (type of 2) KM 40000 Other compensation standard According to the resettlement impact types and relevant standard in Shanghai, following standard is made in Table 0-4. Table 0-4 Relevant cost and fee No. Item Standard Receiving object 1 Fee of reconnaissance, 3% of the total land acquisition and house design and scientific demolition fund research Ã 2 Management fee of 5% of the total land acquisition and house implementation demolition fund Ã 3 Technical training fee 3% of the total land acquisition and house demolition fund Ã 4 Contingency cost 10% of the total land acquisition fund and house demolition fund Ã 5 External monitoring fee 2% of the total resettlement fund Exterior Monitoring Unit 6 Internal monitoring fee 1% of the total resettlement fund Interior Monitoring Unit 18

Resettlement Scheme Resettlement Objectives The displaced persons should be ensured to gain compensation for all of their loss, to share project benefit by proper resettlement and good restoration, to provide subsidy for their temporary difficulties, and to increase their income level, living standard or at least to restore them. Enterprise production, profit making abilities should be improved or at least equal level prior to the beginning of project implementation. Considering the resettlement impact analysis (see Chapter 3), the resettlement scheme is made. Resettlement Principles Principle of Reducing Resettlers as much as possible With the characteristics of zonal construction in the project, the design direction can be altered properly to reduce the affected area of the project as much as possible, so as to reduce resettlers. Principle of Equally Compensating In order to ensure resettlers living standard do not decrease because of project, principle of equally compensating should be employed which including two parts, one is to compensate property by replacement cost, the other one is to compensate as actual for other damages. 1. Resettlement family shall gain resettlement house whose transportation, all kinds of affiliated facilities and surroundings is equal to the original house or the same value of original house. 2. The enterprises will keep original organizational chart and house scale with same functions to restore original business environment as much as possible or gain the same valuable compensation. Meanwhile, production stop and shutout affected by project should be compensated, which is called shutout compensation. 3. Public facilities will be restored fully and their functions should not be lower than original level at least to guarantee unmoving residents natural 20

living in the surroundings of project. 4. Those who do not affected temporarily and those whose property has been damaged partly but no need to move, equal compensation will be allocated too. Principle of Focusing on Emphasis 1. The vulnerable groups should be paid attention in the project (such as the old who has no adult children living together with, widows, single family, the handicapped, chronic patients and poor families). In movement, the preferential policies including housing, employment will favor them. Meanwhile, after movement regular re-visit will be done too for help to particular difficulties until transferring them to local civil governmental departments. 2. Project will plan exploitative movement to mobilize local governments power to carry out resettlers employment training and create employment opportunity as much as possible to accustom resettlers to resettlement environment in short time, therefore to transfer the responsibilities of resettlement from resettlement organizations to resettlers themselves. 3. Project will try its best to maximize cost and benefit of resettlement to develop resettlement ability of the organizations, to standardize resettlement behavior, to establish perfect inside control system, to prevent fund wasting, cutting, embezzling and corrupting to utilize resettlement funds well to reach best resettlement effect; that is to say, in indicators of enacted resettlement effect, project is to try best to reduce resettlement cost. Restoration of Temporarily-Occupied Land Resettlement scheme is established under combination with analysis on impacts of temporary land acquisition and full consultation with the APs. The scheme is shown as following: Affected village The village economic group should obtain the temporary land acquisition compensation according to standard; 21

After the construction period, the construction unit should level and recover the land. Affected enterprises who rent the village s buildings for tertiary industry For those enterprises, they could obtain compensation on the affected production and operation, on basis of the standard consulted and confirmed by project office and the affected units; And after construction, the construction units are required to be in charge of land-leveling. Enterprises on the affected state-owned land For enterprises on state-owned land, they could obtain compensation on the affected production and operation, on basis of the standard consulted and confirmed by project office and the affected units; And after construction, the construction units are required to be in charge of land-leveling. Landscape greening department Landscape greening department will obtain monetary compensation on its greening belt according to the actual value; And could get temporary land acquisition fee; After construction, the construction units are required to be in charge of land-leveling. Municipal road department After the period of temporary land occupation, the construction units are in charge of road recovery. Resettlement for non-residential houses demolition Demolished enterprises For the demolished enterprises, because the resettlement impact is little (see chapter 3.4), moving and stopping-production is not caused, and there is no need to resettle any person. Of which: 22

Enterprises of which the houses are rented from collective economic groups houses for tertiary industry, the demolition compensation fund would be given to village economic group directly, and then village economic group should give proper compensation to the enterprises according to the use of the houses. Detail compensation way and standard should be determined on the basis of negotiation result. When the construction period is finished, the project owner should entrust the construction unit to level and recover the ground and the village economic group should rebuild the former buildings (fencing wall etc.) for the enterprises For the enterprises of which the houses are owned by the legal persons or managers, they will directly get the compensation fund for the demolished buildings. The permanently acquired land is only the land where Shanghai Zhuan Co., Ltd locates, and the land of the other 3 enterprises would be leveled and recovered after the construction, so the enterprises could rebuild the former buildings with the compensation fund. The land where Shanghai Zhuan Corporation locates has been programmed as ecological and greening land by Xuhui District Government, so the land would be acquired by remising way after negotiating with land administration department, planning department and greening department in Xuhui District. The remising fee would be paid to Housing and Land Administration Bureau of Xuhui. Now Shanghai Zhuan Corporation is bankrupted, so the monetary compensation would be adopt through negotiation between the principal of the corporation and the project owner. Affected Infrastructure and Ground Attachment The affected infrastructure and ground attachments should be compensated to ownership enterprises by project organizations and then reconstructed by the ownership enterprises. The rehabilitation measures on demolished facilities should be planned and disposed in advance. And in the actual implementing, due to different conditions different measures should be made for safety, high efficiency, being in time and exact to reduce bad effect on the surrounding groups as much as possible. As for the affected municipal public facilities, the demolishers should demolish according to project s stakes map on the principle of no impact on project construction to reduce movement as much as possible. As for movement 23

of the affected pipelines, demolishers should reconstruct (or remove) before demolish to ensure nature living of residents along the lines including the residents who do not need to move. 24

Public Participation Public Participation and strategy According to national, Shanghai policies and regulations about land acquisition and demolition, project should protect the legal rights of displaced persons and enterprises reduce the discontent and dispute. So, at the rebuild and construction of project, displacement and resettlement policy and implementation rules, resettlement plan should be prepared well to achieve the goal of resettlement successfully and this project pays much attention to consult with displaced person and listen to their opinions on resettlement policy, plan and implementation. During the project preparing phase--feasibility study phase, Shanghai Urban Drainage Corporation has consulted the opinions and suggestion on resettlement and the project from affected persons and units. Publish the RAP. The RAP will be placed in Shanghai Urban Drainage Corporation and on the webpage of affected towns after it is approved by World Bank. May 2008, and will be propagated the notice in local newspapers so that DPs and Non-governmental Organizations can look it up. Main contents of RAP are compiled as information handbook of displaced persons, which should be put out to enterprise and representative shops after project was evaluated before the movement. Main contents of information handbook of displaced persons are: general situation of project, project effects, compensation policy, implementing agency, appeal channel, etc. Public Participation Process and Policy Disclosure To correctly and timely deal the problems and requests of affected persons occurred in land acquisition and house demolition, further consultation should be carried out so that all problems can be solved before the implementation of RAP. Resettlement implementation institutes will arrange public participation meetings, so as to provide affected persons with opportunity to consult with resettlement implementation institutes before signing demolition compensation contract. Table 0-1 Public Participation Process of Affected Population Time Place Participator Content Remark 25

Time Place Participator Content Remark April, 2008 May, 2008 May, 2008 May, 2008 Affected township government Hangnan Village, Meilong Town, Minhang District Affected township government Shanghai Jingyang Real Estate Company Representatives from township government and affected units The representative of cadres of villages, affected units and persons Representatives from township government and affected units Representatives from project owner unit and Shanghai Jingyang Real Estate Company Social economic investigation, resettlement impact investigation Compensation and resettlement policy and the draft resettlement scheme Compensation and resettlement policies and resettlement programming Resettlement impact during the social economic investigation period Primary negotiation in preparation for resettlement plan Further negotiation of compensation policies and rehabilitation plan in amending resettlement Resettlement policies Makeup negotiation for and particular questions particular questions in final of programming version of resettlement Item Project introdution General introduction of information on land acquisition and house demolition Land acquisition and house demolition policy of Shanghai Table 0-2 Policy Disclosure Process Publicizing Type and used language Date Chinese project introduction handbill March, 2008 Chinese, prophase estimation handbill April, 2008 Place Affected town Affected town Chinese, policy test April, 2008 Affected town Notice on publishing RAP Chinese, RAP text After approval from World Bank Community Publicizing the RAP on newspaper Chinese, newspaper August, 2008 Newspaper RAP information brochure Chinese, delivered to the APs After approval from World Bank Community RAP Chinese English After approval from World Bank Libraries 26

Greivance and Complaint Procedure During the compilation and implementation of project resettlement plan, the affected people and institutions were and will be always put a high value upon and the grievance mechanism was established. Four phases of grievance are as follows Chart 0-1 Grievance and Complaint Procedure Phase 1 If the affected persons feel damaged by resettlement activity, they could appeal by verbal or paper way to: (1) Resettlement office in Shanghai Urban Drainage Corporation; (2) Local Housing Management Office. If by verbal way, disposal and written record are needed, and the relevant agencies should solve it in 2 weeks. Phase 2 If displaced persons are still unsatisfied with the decision of phrase 1, they can appeal to local housing management office after being noticed the decision. At the same time, demolished persons who have dissensions about the appraisal results, they could appeal to Shanghai Real Phase 3 If displaced persons are still unsatisfied with the decision of phrase 2 or get no answer from local housing management office after 15 days, they could appeal to Shanghai Housing and Land Administration Bureau (SHLAB) during 3 months. And SHLAB should make a decision during 1 month. Phase 4 If displaced persons are still unsatisfied with the decision of phrase 3, they could appeal to people court during 15 days according to administration procedure law. 27

Institution Resettlement Agency To ensure the smooth implementation of this RAP, organizations should be established for the planning, harmonizing and monitoring of resettlement activities. The institutions responsible for planning, implementation, management and monitoring of resettlement activities involved in STTPP are: Shanghai Develope and Reform Committee Shanghai Construction and Management Committee Shanghai Water Affairs Bureau Shanghai Urban Drainage Co., Ltd Shanghai Urban Planning and Administration Bureau Shanghai Housing and Land Administration Bureau Demolition Management Office of Districts Shanghai Municipal Designing Institution Resettlement Monitoring Agency Shanghai Develop and Reform Committee & Shanghai Construction and Management Committee is responsible for land acquisition, demolition, directing resettlement implementation, making policy and examining the RAP. Shanghai Water Affairs Bureau is responsible for coordinating the administration work, collecting the special capital of water affairs and answer for the appeal from APs. Shanghai Urban Drainage Co., Ltd is responsible for coordinating the project construction work and contacting with World Bank, such as: Entrusts designing institutes to define the scope of affected area. Appeals to municipal planning bureau for License of planning using land, and to housing and land administration bureau for License of construction land and License of house demolition. Investigates all the residential houses and enterprises in the range of land acquisition area. Signs agent agreements with demolition units in the district. Answer for the persons or units affected by demolition. 28

Shanghai Urban Planning Administration Bureau: check the application of License of planning using land from Shanghai Urban Drainage Corporation and the approval documents for the preliminary design, affirming the land acquisition range, and granting License of planning using land. Shanghai Housing and Land Administration Bureau: granting License of construction land and License of house demolition, and monitoring the implementation of resettlement process. Demolition management office of Districts: is the main agency of resettlement, Measuring and check the land acquisition area, land property, affected population and investigating the land using situation, resettlement activity, and comparing with RAP. Shanghai Municipal Design Institution: affirming the project design and demolition area. Independent Resettlement Monitoring Agency: monitoring the resettlement activity. 29

Organization Chart City government City Construction Committee City Develope and Reform Committee City Housing and Land Administration Bureau City Water Affair Bureau City Planning Bureau Shanghai Urban Dainage Co., Ltd District Planning Bureau Project design Agency Project construction and Administration Agency District Construction Committee, District Water Affair Bureau, and demolition management department Independent monitoring agency Township government, Village Committee Demolition company Affected household Affected enterprise 30

Responsibilities Shanghai Develop and Reform Committee, Shanghai Construction and Management Committee & Shanghai Water Affairs Bureau Responsible for directing, organizing, coordinating, making policies, reviewing the RAP, implementing interior inspection and making decision of important issues in resettlement. Shanghai Urban Drainage Co., Ltd Entrusts designing institutes to define the scope of affected area. Organizes to conduct socio-economy survey. Consults and organizes the RAP, and participates in its compilation Implements RAP Arranges and coordinates the implementation of RAP according to project construction schedule Appropriates fund and supervises its use Organizes and carries out internal monitoring, chooses and determines external monitoring institution and coordinates external monitoring activities. Organizes and carries out internal monitoring, chooses and determines external monitoring institution and coordinates external monitoring activities. Check the monitoring report Deals with conflicts and complains Regularly submits reports on land acquisition progress, utilization of fund, the implementation quality and so on Shanghai Urban Planning and Administration Bureau & Shanghai Housing and Land Administration Bureau Carries out related national policies and regulation of project construction land. Participates in examining compensation rate for land acquisition and attachments. Goes through approval procedures for land acquisition. 31

Participates in socio-economic survey. Participates in compiling and examining RAP. Issues prejudication report of construction land. Directs, coordinates and supervises land acquisition and resettlement implementation activities. Assists to coordinate and resolve conflicts and problems in the process of land acquisition and money-transferring. Demolition Management Office and water affair bureau of Districts Participates in socio-economy survey. Consults to compiling resettlement methods with affected units and participate compiling RAP. Approval for related demolition formality. Conducts information management of land acquisition, house demolition and resettlement. Assists to resolve issues in resettlement. Shanghai Municipal Designing Institution Reduces project effects through optimization of design. Determines affected scale of land acquisition and house demolition. Resettlement Monitoring Agency As an independent monitoring institution, it will monitor each aspect of RAP and its implementation, and submit independent monitoring and evaluating report to Shanghai Urban Drainage Co., Ltd. and the World Bank. Detailed responsibilities are as follows: (1) Carries out socio-economy survey in programming areas; (2) Evaluates detailed impacts and restoration of DPs production and livelihoods; (3) Analyzes data; 32

(4) Monitors the whole process of RAP implementation, and submits monitoring report to Shanghai Urban Drainage Co., Ltd and the World Bank. The detailed responsibilities of the institute are explained in the part of external monitoring and evaluation. Organization Ability and Staffing The leading team of the project is composed of Shanghai City Government and cadres of the administration departments. They are full of experiences, and can organize and coordinate the resettlement activity well. Resettlement agency is equipped well and the staffs are professional. The information channel is smooth. The management and implementation agencies have good communication and transportation equipments. There are 22 professional staffs, even more as 43 during high peak period. Details could be seen in Table 0-1. Table 0-1 staffing of the resettlement institutes involved in the project Resettlement institutes Full-time staff (person) Staff at peak hours (person) Staff composition Shanghai Develop and Reform Committee 2 3 Governmental personnel Shanghai Construction Management Governmental personnel, 2 4 Committee engineering technician Shanghai Water Affiair Bureau 2 3 Governmental personnel, engineering technician Shanghai Urban Drainage Co., Ltd. 3 7 Governmental personnel, engineering technician Shanghai Planning Administration Governmental personnel, engineering 2 3 Bureau technician Shanghai Housing and Land Governmental personnel, engineering 2 4 administration Bureau technician Demolition Management Office of Governmental personnel, engineering 3 7 District technician Shanghai Municipal Design Institution 2 4 Senior engineers, engineers Independent Exterior Monitoring Agency 4 8 Experts on resettlement and sociologists Total 22 43 Measures for Strengthening Institutional Capacity In November and December 2007, engineering technicians of Shanghai WB Project Office have provided training for staffs on land 33

acquisition, house demolition and resettlement, including the World Bank OP4.12, related land acquisition and demolition laws, socioeconomic survey theory and methods etc. Before the implementation of RAP, the staffs will receive trainings about resettlement operation rules of the World Bank, the regulations of land acquisition and house demolition, implementation and management of resettlement, in order to increase the professional quality and the abilities of policy-handling. In the implementation of RAP, it is planned to organize key staffs engaging in resettlement to study and investigate other domestic projects financed by World Bank, and offer resettlement policy training and other professional training to them. Meanwhile, skill trains will be provided to strengthen employment capacity of affected persons irregularly. To ensure that funds and equipment can be obtained in time to increase work efficiency. Rational division of labor; establish and improve the reward and punishment system for staffs of land acquisition, house demolition and resettlement to arouse their initiative. To establish a demolition and resettlement information management system. With its help, to manage the data of land acquisition and demolition, to strengthen information feedback, and ensure that each department is well informed. Important problems will be discussed and decided by the leading team. To strengthen report system and internal monitoring, and resolve the problems promptly. To strengthen the independent monitoring and evaluation. The independent monitoring and evaluation institution should promptly report to relevant department about the problems and provide suggestions to solve them. 34

Table of Implementation Schedule Principle of Progress Joint of Resettlement and Construction According to the schedule, the project is to be finished from July, 2009 to June, 2012, and the involved civil construction will be completed in December, 2011. For the project is carried on by stages and effects occur by stages, the schedule for resettlement goes with the schedule of each sub-project. The main work is planned to begin in June, 2009 and end in November, 2011. The basic principles of connecting the projects are as following: Land acquisition and house demolition should be finished one month before project begins. The time to start the project will be decided on the basis of land acquisition, house demolition and resettlement. Before project begins, enough time should be reserved for land acquisition, house demolition and resettlement. Timetable of Key Tasks in Resettlement Implementation Principles of Scheduling Land acquisition and demolition scope of the project will be eventually decided based on each sub-projects designing plan and should be finished before the actual measurement and calculation of land acquisition and demolition. The measurement and calculation of the affected objects will be done, before signing resettlement compensation agreement, jointly by Shanghai Urban Drainage Corporation, related departments and property owners according to red-line maps. Shanghai Urban Drainage Corporation holds mobilization meetings with attendants of re-settlers and the demolished enterprises to publicize relevant policies of land acquisition, demolition and compensation and resettlement methods before signing resettlement compensation agreement. After the meeting, the notice of land acquisition and demolition should be publicized officially. 35

Resettlement and compensation agreement with the demolishers and the demolished should be signed after the actual measurement and calculation, and notice of land acquisition and demolition. Infrastructure should be constructed before demolition. Compensation fund should be settled and released after signing agreement and before moving. Resettlement work should be examined to make the re-settlers satisfied. Overall Schedule of Resettlement According to the preparation and implementation progress, the overall schedule of resettlement in this project is drafted. Proper adjustment will be made due to some little deviation from the plan. Details are shown in Table 0-1. 36

Table 0-1 Schedule for land acquisition and house demolition 37

Expense and Budget Expense Expense in the process of land acquisition and resettlement should be included in the general budget. Based on the price of July, 2008, total expense of resettlement compensation is about 36.57 million Yuan, among which, 17.60 million Yuan is for permanent state-owned land acquisition, accounting for 48%; 2.33 million Yuan is for compensation on temporary land occupation, accounting for 6.4%; compensation for house demolition is 4.75 million Yuan (total to be non-residential house), accounting for 13%; compensation for enterprises on impacts of their production and operation is 0.63 million Yuan, accounting for 1.7%; compensation for infrastructures and ground attachments is 4.1736 million Yuan, accounting for 11.41%; all kinds of tax & fee is 7.08 million Yuan, accounting for 19%. Resettlement cost estimation is shown in Table 0-1. Table 0-1 Budget for resettlement compensation Compensation No. Item Unit Amount standard Cost (Yuan) Percentage (Yuan/unit) 1 Permanent state-owned land acquisition Ã Ã Ã 17600000 48.13% 1.1 Land remising fee Mu 11 1600000 17600000 48.13% 2 Compensation on temporary land acquisition Ã Ã Ã 2334425 6.38% 2.1 Collective non-agricultural land Ã Ã Ã 284600 0.78% 2.1.1 Temporary land acquisition fee m 2 1125 24 27000 0.07% 800 22 17600 0.05% 2.1.2 Common virescence compensation m 2 800 300 240000 0.66% 2.2 State-owned land Ã Ã Ã 2049825 5.61% 2.2.1 Temporary green-land acquisition fee m 2 4525 3 13575 0.04% 2.2.2 Greenbelt m 2 4525 450 2036250 5.57% 3 Non-residential house demolition Ã Ã Ã 4753550 13.00% 3.1 House demolition of enterprises on state-owned land Ã Ã Ã 4260950 11.65% 3.1.1 Main house m 2 1000 3700 3700000 10.12% m 2 155 3590 556450 1.52% 3.1.2 Simple house m 2 30 150 4500 0.01% 3.1.3 Fencing wall m 2 290 140 40600 0.11% 3.1.4 Site m 2 2655 82 217710 0.60% 3.2 Non-residential house demolition on collective land Ã Ã Ã 459800 1.26% 3.2.3 Store-house m 2 1100 418 459800 1.26% 3.3 Auxiliary house Ã Ã Ã 32800 0.09% 3.3.1 Site m 2 400 82 32800 0.09% 4 Compensation for enterprises on Ã Ã Ã 630500 1.72% 38

No. Item Unit Amount Compensation standard Cost (Yuan) Percentage (Yuan/unit) impacts of their production and operation 4.1 Enterprises on collective land m 2 1100 250 275000 0.75% 4.2 Enterprises on state-owned land m 2 1185 300 355500 0.97% 5 Infrastructures and ground attachments Ã Ã Ã 4173600 11.41% 5.1 Street trees / 8 2500 20000 0.05% 5.2 Watch box / 1 50000 50000 0.14% 5.3 Overhead pipeline Ã Ã Ã 2890000 7.90% 5.3.1 Ventilation cable (type of six) KM 12 180000 2160000 5.91% 5.3.2 High pressure electric pole / 1 200000 200000 0.55% 5.3.3 Communication copper cable (type of 4) KM 0.1 200000 20000 0.05% 5.3.4 Aerial cable (type of 4) KM 0.2 1200000 240000 0.66% 5.3.5 Street lamp pole / 1 230000 230000 0.63% 5.3.6 Overhead electric pole / 1 40000 40000 0.11% 5.4 Underground pipeline Ã Ã Ã 1213600 3.32% 5.4.1 Water pipe (type of 300) KM 0.04 1340000 53600 0.15% 5.4.2 Water pipe (type of 250) KM 0.12 1000000 120000 0.33% 5.4.3 Communication copper cable (type of 2) KM 4 240000 960000 2.63% 5.4.4 Electric cable (type of 2) KM 2 40000 80000 0.22% Subtotal of items 1-5 Ã Ã Ã 29492075 80.65% 6 Other taxes and fees Ã Ã Ã 7078098 19.35% 6.4 Fee of reconnaissance, design and 3% of the total land acquisition and scientific research house demolition fund 884762 2.42% 6.5 Management fee of implementation 5% of the total land acquisition and house demolition fund 1474604 4.03% 6.6 Technical training fee 3% of the total land acquisition and house demolition fund 884762 2.42% 6.7 Contingency cost 10% of the total land acquisition fund and house demolition fund 2949208 8.06% 6.8 External monitoring fee 2% of the total resettlement fund of items 1-5 589842 1.61% 6.9 Internal monitoring fee 1% of the total resettlement fund of items 1-5 294921 0.81% 7 Total 36570173 100.00% 39

Annual Capital Utilizing Plan According to implementation schedule of the project, annual disbursement plan of resettlement compensation was compiled. Details are shown in Table 0-2. Table 0-2 annual investment plan Year 2009 2010 2011 Subtotal Investment (10 4 Yuan) 1463 1097 1097 3657 Proportion (%) 40% 30% 30% 100% Resettlement Capital Resource According to the project schedule, engineering capital comes from loans of domestic and foreign bank and financial transfer and all resettlement capital comes from owners. Capital Flow and Allocation Plan Capital Flow To ensure that the compensation can be paid to the DPs timely and sufficiently according to the compensation policy and compensation rate in RAP, the capital flow in this project is as following: Shanghai Urban Drainage Corporation directly pays the relevant tax fee to the affected units and Land and House Management Bureau, and at the same time, deposits house demolition compensation, land compensation and resettlement subsidy in bank or credit cooperative based on related agreements. Then the bank or credit cooperative pays the money to affected streets or communities; Young crop compensation and non-residential house demolition compensation will be directly paid to the DPs. Infrastructure compensation and ground attachment compensation are paid to related departments or individuals. Capital flow is shown in Chart 0-1. 40

Counterpart funds of project owner Shanghai Urban Drainage Corporation The affected units and streets or communities of the APs House and land management bureau Bank or credit coorperative towns Property owners of ground attachent shops Enterpris Residents house The APS Village committee Chart 0-1 Capital flow Allocation and Management [1] All the expenditure related to demolition and resettlement should be included in the overall budgetary estimate of the project. [2] Land compensation and house demolition compensation should be allocated before land acquisition and house demolition to ensure appropriate resettlement to DPs. [3] To ensure land acquisition and resettlement of a smooth implementation, all kinds of financial and supervising organizations should be established to ensure all funds on position in time. 41

Monitoring and Evaluation To ensure a smooth implementation of RAP and achieve the aim of properly resettled, according to the requirements of the World Bank Operational Policies OP4.12 <Involuntary Resettlement> and <Resettlement Monitoring and Evaluation of the World Bank Loan Projects in China Business Guide>; the project will monitor and evaluate the implementation of land acquisition and house demolition and resettlement activities regularly. Independent monitoring bodies have two parts: internal monitoring and independent external monitoring. Internal monitoring is carried out by Shanghai Urban Drainage Corporation, to ensure that land acquisition and house demolition is implemented according to the principle and timetable of RAP. The purpose of internal monitoring is to make resettlement agencies keep good functions in implementation process. Independent monitoring is carried on to provide a tracking, monitoring and evaluation of land acquisition, house demolition, resettlement and APs productivity & living standard by an organization independent from the project implementation agencies. Independent monitoring agency will follow the resettlement activities to evaluate whether the goals of resettlement are achieved through observing <1>RAP, <2> the application of the laws of P.R.C. concerned on resettlement, <3> compliance with the principles of the World Bank s Operational Directive O.P. 4.12 on Involuntary Resettlement, <4> an improvement in the standards of living of the DPs or at least maintenance of the former living standards. The Independent Monitoring Institution provides suggestions to the institutions for demolition implementation, so as the problems encountered in the implementation can be resolved in time. Internal Monitoring Shanghai Urban Drainage Co., Ltd operates an internal monitoring mechanism to detect resettlement activities. The project office builds a basic database of land acquisition and house demolition and resettlement and uses it to work out RAP, monitor all the resettled households, demolished agencies and shops, and carry out internal monitoring on the whole preparation and implementation process. 42

Implementation Procedures During the implementation, based on the monitoring samples, Shanghai Urban Drainage Co., Ltd. collects and records resettlement information, and will make regular supervision to the project resettlement. In the above monitoring mechanisms, there is a continuous flow of information with a regular format, to make information correct and clear. As the important component of the internal monitoring system, Shanghai Urban Drainage Corporation, Shanghai Municipal (district) Land and Natural Resource Bureau will carry out periodic supervision and verifications. Monitoring Content Resettlement for rural re-settlers Payment of compensation for re-settlers Compensation on residential house demolition and resettlement Compensation on demolition for enterprises and institutions and shops, and resettlement Restoration and reconstruction of infrastructure Staffing, training, working schedule and effectiveness of the institutions Registration and disposal of complain and appeal from re-settlers Internal Monitoring Report Shanghai Urban Drainage Corporation will compile an internal monitoring report and submit it to the World Bank every half year. External Monitoring and Evaluation Independent Monitoring Institute Shanghai Urban Drainage Corporation will retain independent monitoring institute to carry out external monitoring and evaluation. Independent monitoring institution will periodically monitor and evaluate the implementation of RAP, including the progress, quality of resettlement, utilization of funds. It will give advice and suggestions. After tracking 43

monitoring DPs living standard and production condition, the independent monitoring institution will submit monitoring and evaluation reports to the World Bank. Monitoring Procedure and Contents To compile working outline for M&E To develop software of resettlement M&E information system To prepare survey outline, questionnaire forms, and recording card of DPs, sampling enterprises and institution To design sampling-investigation scheme Sampling scale: for effect in the project is little, complete sampling investigation is adopted. Basement survey A basement survey is carried out on the households and the enterprises and institutions affected by land acquisition and house demolition, so as to obtain basement data about their living standards and production condition (including living, business and income). To establish monitoring and evaluation information system A monitoring and evaluation information system is established in which all the data are classified and stored in different databank in computer for convenience to analysis and tracking monitoring. To conduct monitoring survey Capacity evaluation to resettlement implementation institution: doing survey on its working ability and efficiency The progress, compensation standard and payment of resettlement Impact analysis on land acquisition and house demolition Monitoring shops: on allocation of compensation, the houses for resettlement, moving progress, production restoration, workers income, and resettlement quality 44

Monitoring enterprises and institutions: on allocation of compensation, land acquisition for new site, house building, moving progress, production restoration, income restoration, resettlement quality Restoration measures for Vulnerable group Public facility: monitoring on allocation of compensation, rehabilitation of its functions, reconstruction progress Public consultation: participation in compiling RAP and DPs participation during implementation, monitoring effects of participation Appeal of re-settlers: monitoring registration and disposal of DPs appeal To sort monitoring data and to establish databank To conduct comparing analysis To compile M&E report based on monitoring plan In June 2009, independent monitoring and evaluation team is established to compile working outline; In July 2009, preparation should be made for independent monitoring and evaluation, including: working out survey outline and questionnaire, establishing monitoring system, definition task, and choosing monitoring sites; In Sept 2009, to submit M&E report No.1 (baseline survey report) Monitoring and evaluation cycle should be reasonably arranged on basis of the actual resettlement progress, until resettlement effect is restored; To compile post-evaluation report after finishing resettlement. Monitoring Indicator Socio- economic indicator: income per capita, GDP, employment rate Institution indication: staff composition, staff quality, regulations, equipment, efficiency Re-settlers affected by land acquisition and occupation: compensation fund appropriative rate, production resettlement measure, income changing rate, satisfaction level to resettlement 45

Demolished residents: compensation fund appropriative rate, satisfaction level to resettlement Shops: compensation fund appropriative rate, business housing, location changing, operation environment changing, changing rate of worker income, satisfaction level to resettlement Enterprises and institutions: compensation fund appropriative rate, satisfaction level to resettlement Infrastructure: compensation fund appropriative rate, and function restoration rate Post Evaluation After completing the project, based on monitoring and evaluation, postevaluation will be carried out on resettlement activities. The experiences of success and the lessons to be drawn from land acquisition, resettlement etc. will be summed up to contribute to resettlement in the future. Post evaluation will be conducted by external independent monitoring and evaluation agency entrusted by Shanghai Urban Drainage Corporation. The independent monitoring and evaluation agency should compile working outline of postevaluation and develop evaluation indicators. It will conduct socio-economic analysis survey, compile post-evaluation report on resettlement of Puxi Section Project of STTPP in Bailonggang Area, and submit it to the World Bank. 46

Entitlement Matrix Table 0-1 Entitlement Matrix Types of affected DPs Compensation and resettlement policy Standard Enterprise and institution demolition Temporary land occupation Demolish 2285m 2 enterprises houses, 3345m 2 attached buildings. (5 enterprises are affected, 2 renting rural collective houses for the tertiary industry, 3 being the direct property owners) Temporarily acquire 1925m 2 collective land of which there are 800m 2 collective greenbelt; Temporarily acquire 6550m 2 state-owned land, of which there are 4525 state-owned virescence belt. Enterprises on the state-owned land (holding house property right) Enterprises (renting house) Land users Property owner (rural collective economic organization) Lessee (enterprises) Rural collective economic organization Landscaping and greening bureau Obtain compensation for enterprises on building demolition and impacts to its production and operation Obtain compensation on building demolition Obtain compensation on impacts to its production and operation Compensation should be paid according to the occupation time and the loss After land occupation, the occupied land should be recovered and provided with compensation on temporary land occupation Compensation should be paid according to the occupation time and the loss, and after land occupation, the occupied land should be recovered and provided with compensation on temporary Greenland occupation Get compensation on afforestation seedlings Ground Totally affect 5 Property owners Compensation to units with property rights, from project unit Ã Main house 3700Yuan/m 2 (Xuhui 3590Yuan/m 2 (Minhang Simple house 150Yuan/m 2 fencing wall 140Yuan/m 2 Site 82Yuan/m 2 Compensation on impacts to production and operation 300Yuan/m 2 Brick-concrete plain house 526Yuan/m 2 Store house: 418Yuan/m 2 Simple house 150Yuan/m 2 Fencing wall 140Yuan/m 2 Site 82Yuan/m 2 Compensation on impacts to production and operation 250Yuan/m 2 Compensation on temporary land occupation:24yuan/m 2 Minhang, Xuhui 22Yuan/m 2 Pudong New Area Compensation on common greening 300Yuan/m 2 Compensation on temporary land occupation 150Yuan/m 2 Compensation on temporary land occupation 3Yuan/m 2 Compensation on greenbelt 450Yuan/m 2 47

Types of affected DPs Compensation and resettlement policy Standard attachment types of public infrastructures and ground attachments, including common street trees, watch box, virescence belt, overhead pipeline, underground pipeline. 48

Appendix1. Project Sketch Map Note: The line in red color is the project scope. 49