Guizhou Vocational Education Development Program Land Acquisition and Involuntary Resettlement Due Diligence

Guizhou Vocational Education Development Program Land Acquisition and Involuntary Resettlement Due Diligence Guizhou Provincial Education Department July 2015 1

Contents 1 Brief Introduction... 1 2 Qingzhen TVET Town... 5 2.1 Introduction... 5 2.2 LAR Impacts... 5 2.3 Land Compensation and Income Retoration... 7 2.4 House Demolition and Relocation... 9 2.5 Ethnic Minorities... 12 2.6 Special Assistance to the Vulnerable Group... 12 2.7 Institutional Arrangement... 12 2.8 Implementation Procedures, Information Disclosing and Participation... 14 2.9 Appeals and Grievance Redress... 15 3 Huaxi University Town... 16 4 Conclusion... 18 5 Proposed Action Plan... 24 2

List of Tables Table 1 LAR Impacts of the TVET Schools... 6 Table 2 Land Compensation Rate for the Acquired Land in Qingzhen TVET Town... 7 Table 3 Impacts on Different Group and Income Restoration... 8 Table 4 Compensation Reference Rate for House and Attachments (yuan/m 2 )... 9 Table 5 Compensation Rate for Illegal Houses (yuan/m 2 )... 10 Table 6 Property Exchange... 10 Table 7 Awards for the HHs Who Selected the Property Exchange... 10 Table 8 Other Subsidies... 11 Table 9 Special Assistance to the Vulnerable Group... 12 Table 10 Compensation for Land in Huaxi (yuan/mu)... 16 Table 11 Comparative Analysis of Legal Framework and ADB Safeguard Policy Statement.. 19 List of Figures Figure 1 Location of the Two Towns... 1 Figure 2 Huaxi Huaxi University Town Planning Map... 2 Figure 3 Qingzhen TVET Town Planning Map... 3 Figure 4 Establish of Qingzhen TVET Town Labor Submarket... 9 Figure 5 East Relocation Site... 11 Figure 6 West Relocation Site... 12 Figure 7 Land Acquisition and House Demolition Division... 13 Figure 8 LAR Institutional Arrangement... 13 Figure 9 Confirmation of the Results of DMS... 15 Figure 10 Dabajing Relocation Site for Huaxi... 17 3

Abbreviations AAOV average annual output value AH affected household AP affected person DMS detailed measurement survey HH household LAR land acquisition and resettlement MLS minimum living security MLR Ministry of Land Resource PRC People s Republic of China TVET Technical and vocational education and training Units Currency unit = Yuan (CNY) 1 hectare = 15 mu 1 mu = 667 m 2 4

I. Brief Introduction 1. The proposed RBL project is located in two sites, including Huaxi University Town and Qingzhen TVET Town. Among the proposed 8 schools which will have civil works, 1 school is in Huaxi University Town and other 7 schools are in Qingzhen TVET Town. Figure 1 is the location map. The distance from Qingzhen TVET Town and Huaxi University Town to the downtown of Guiyang (the capital of Guizhou Province) is 23 kilometers. Qingzhen TVET Town locates in Qingzhen City, and Huaxi University Town locates in the Huaxi District. Qingzhen City and Huaxi District are all administrated by Guiyang City, which is the capital of Guizhou Province. Figure 1 Location of the Two Towns 2. The Huaxi University Town was established in December 2009. By now, there are 9 universities/colleges in the town. The total planning area is 63.46 km2 and the planning construction area is 47.73 km2. Finally, there will be 10 universities/colleges in the town. Only the Guizhou Light Industry Technical College (the College) will be included in the Guiyang TVET program, and a due diligence is conducted for this College. Land acquisition and house demolition for this college was completed by October 2010, and all AHs were relocated well by July 2013. LAR activities took place not in anticipation of ADB project. 1

Figure 2 Huaxi University Town Planning Map 3. In 2010 and 2011, there were some local TVET schools and the Guizhou Tourism School in Qingzhen city; these were called Qingzhen TVET Zone. It was designated Qingzhen TVET Town in 30 March 2012. From that time, the Qingzhen TVET Town became a provincial level TVET town and a provincial leading group was established. The vice-governor of Guizhou Province is the head of the leading group, and other members come from other provincial departments, including Land Resource Department, Education Department, Construction Department, Environment Protection Department, etc. According to the Qingzhen TVET Town Development Plan (2014-2020) approved by Guizhou Provincial Government, the total planned area is 46 km2, including 27.5 km2 land for construction. The TVET town has two parts, including east part and west part. Land acquisition and house demolition for east part was commenced from March 2012 and completed by June 2012 all a one time, whereas it was done project by project for the west part from January 2013 and is ongoing, which was not in anticipation of ADB project. By now, there are 17 schools in the town and according to the plan there will be totally 20 schools by 2017. 2

Figure 3 Qingzhen TVET Town Planning Map 1 4. By 15 April 2015, land acquisition and house demolition for the 16 schools in Qingzhen TVET Town has been completed, and house demolition of the remaining 60 HHs affected by transportation school in Qinzhen will be completed by June 2015. All 650 AHs are in transition. No further land acquisition and house demolition will be undertaken during the project for the schools under the RBL2, and that this is a review of land acquisition already undertaken. 5. To assess and validate existing land acquisition and resettlement (LAR) safeguards systems and determine potential involuntary resettlement impacts and institutional capacity for safeguards implementation, the program preparatory TA consultants carried out document reviews of existing relevant laws, policies, and reports on land sector governance and involuntary resettlement in Guiyang. This was supplemented by meetings and interviews conducted with (i) key personnel of Qingzhen TVET Town Administrative Committee and Huaxi University Town Administrative Committee; (ii) the social affairs department under Qingzhen TVET Town Administrative Committee which is responsible for land acquisition and resettlement; (iii) the Qingzhen City House Demolition Bureau; (iv) Huaxi District Government LAR Headquarter; (v) affected villagers and village leaders; and (vi) 8 ADB financed schools which will have civil works. The due diligence covers all the 17 schools in the Qingzhen TVET Town and one college in the Huaxi University Town. 6. The existing LAR legal and regulatory framework was assessed against ADB 1 The relocation land is for the APs. 2 The 3 schools still to be built are not under the ADB financed RBL program. 3

involuntary resettlement policy principles to identify existing good practice and critical gaps in meeting the applicable Safeguard Policy Statement (SPS) principles. The team also assessed the safeguards system and identified institutional capacity-building needs to propose safeguards-related actions to be applied. 7. Land acquisition and resettlement of Qingzhen TVET Town and Huaxi University Town was implemented based on the following national, provincial and local laws and regulations. Laws and Regulations of PRC Land Administration Law of the People s Republic of China (effected from January 1 of 1999, revised on August 28, 2004). Decision of the State Council on Deepening Reform and Strengthening Land Administration, Ref. GF[2004]28.(effected from October 21 of 2004) Guidelines for Strengthening Land Acquisition Compensation and Relocation System, (Ref. No.GTZF[2004]238), (effected from November 3, 2004) Circular on Issuing the Land Classification (trial), Ref. No. GTZF[2001]255. Measures for the Administration of Preliminary Examination of the Land Used for Construction Projects, Decree No.27, Ministry of Land Resources, effected from December 1, 2004; Methods for Announcement of Land Acquisition, Decree No.10, Ministry of Land Resources, effected from January 1, 2002; Regulation on the Expropriation of Buildings on State-owned Land and Compensation, effected from January 21, 2011; The relevant policies of Guizhou Province and Guiyang City Regulations of Guizhou Province on Land Administration, effected from January 1, 2001; Decision of the People s Government of Guizhou Province on Deepening Reform and Strictly Enforcing Land Administration, Ref. QFF[2005]17, effected from June 21, 2005; Regulations of Guizhou Province on Preliminary Examination of the Land for Construction Project, Ref. QGTZF[2004]122, effected from January 1, 2005. Notice of the People s Government of Guizhou Province on Strengthening Land Acquisition Administration for Key Construction (Ref. QFF[2004]5); Integrated Land Acquisition Price of Guiyang City (ZFF[2009] No 100) Management Measure for implementation Regulation on the Expropriation of Buildings on State-owned Land and Compensation in Guiyang, issued by Guiyang City Government on 4 July 2012. 4

II. Qingzhen TVET Town A. Introduction 8. For the schools in the east part, land acquisition and house demolition was conducted all a one time, whereas it was done project by project for the west part and is ongoing. The same policy framework was applied for the east and west part. B. LAR Impacts 9. By March 2015, there are 17 TVET schools in the town, and 16 of them have finished land acquisition and house demolition, except the transportation school. Negotiation with the remaining 60 HHs affected by house demolition is ongoing and it s planned that house demolition will be finished by June 2015. Detailed land acquisition and resettlement (LAR) impacts are presented in Table 1. Totally, 7,042 mu collective land was acquired and affected 1,403 HHs and 4,209 persons3. Demolition of 294,570 m2 houses affected 891 HHs and 2,673 persons. The Qinglong Sub-district and Zhanjie Township was affected. No. 5, 8, 12, 13, 14, 15, and 17 are the 7 schools which will have civil work under the ADB financed RBL program. 3 The local government doesn t have the number of the APs. This number is estimated based on the family size in the yearbook. 5

no School Acquired land (mu) AH Table 1 LAR Impacts of the TVET Schools Demolished AH Start and Areas (m 2 ) Completion date of LAR Relocation Site (east/west) Date of relocation 1 Finance school 257.624 51 3,199.93 14 2014.01-2014.12 West 2015-2016 2 Telecommunications 37.526 7 0 0 2014.01-2014.12 - - School 3 Radio and television 114.729 23 2,0171.68 78 2014.01-2014.12 West 2015-2016 school 4 Technology and 207.622 41 0 0 2014.01-2014.12 - - business college 5 Construction school 537.409 107 38,337.5 85 2012.01-2012.06 East 2015-2016 6 Industry Polytechnic 1,050.852 210 47,278.6 75 2012.01-2012.05 East 2015-2016 College 7 Qingyuan Driving School 342.713 68 5,529.38 32 2012.06-2013.04 West 2015-2016 8 Automobile Industry 62.870 12 4,269.37 16 2012.06-2013.03 West 2015-2016 college 9 kindergarten training 643.142 128 21,919.25 60 2012.01-2012.05 East 2015-2016 school 10 Guiyang Economics and 341.545 68 0 0 2013.01-2013.11 - - Trade Vocational School Subtotal 3596.032 715 140,705.71 360 7 schools which will have civil works 1 Transportation college 1,123.827 225 43,685.73 156 2014.10-2015.06 West 2015-2016 2 Agricultural Engineering 446.899 89 6,455.47 16 2014.10-2015.03 West 2015-2016 3 Tourism School 208 41 0 0 2007.10-2008.04 - - 4 Mechanical School 535.748 107 41,591.26 84 2012.01-2012.10 East 2015-2016 5 Water Conservancy 427.42 85 35,258.77 132 2014.05-2015.03 West 2015-2016 School 6 Business School 303.375 61 6,523.66 38 2014.05-2015.03 West 2015-2016 7 Guizhou Trade & 400.923 80 20,349.43 105 2012.08-2013.05 West 2015-2016 Economics School Subtotal 3,446.19 688 153,864.32 531 Total 7,042.224 1,403 294,570 891 6

C. Land Compensation and Income Restoration AAOV (yuan/mu) 10. For land acquisition, the Guizhou Provincial Land Administrative Regulation (effective from January 1, 2000 and revised in 2010) and the Integrated Land Acquisition Price of Guiyang City (ZFF[2009] No. 100) is the policy basis. For arable land, the compensation was set as 23 times of the annual average output value (AAOV). According to the Guizhou Provincial Land Administrative Regulation, 80% of the land compensation and all resettlement subsidy need to be paid to the villagers. So among the compensation, 92% (31500 yuan/mu) was paid to the farmers directly and the village committee reserved 8% (3,000 yuan/mu) for community affairs. And before land acquisition, in addition to the compensation for land, social security fund (10,000 yuan/mu) paid by the schools was deposited in the special social security fund account of the Social Security Bureau for the affected households/villages. 1500 Arable land 1500 Forest land 1500 Un-used land Table 2 Land Compensation Rate for the Acquired Land in Qingzhen TVET Town Type of Times of AAOV Compensation To the land (yuan/mu) farmer Land compensation Resettlement Subsidy To the village committee Social Security Fund (yuan/mu) 10 13 34,500 31,500 3,000 10,000 7 3 15,000 12,900 2,100 4,000 4 0 6,000 4,800 1200 4,000 11. In Qingzhen, as most areas of China, the young people prefer to go out to work in the coast provinces or Guiyang City, and only the older people are farming on the land. Due to the good location, people can easily find jobs in Guiyang City. In 2014, the net disposable income of famers in Qingzhen City is 10,445 yuan per capita annually, which is much higher than the provincial level of 6,671 yuan. Based on the yearbook, averagely, the agricultural income before land acquisition was less than 20% of the total income. 12. The following measures have been adopted for income restoration: (i) Jobs during construction and operation. The remaining group on land is called 4050 people in China, which include men who are more than 40 years old and women who are more then 50 years old. Normally, it s difficult for them go get non-agricultural jobs due to their age and low education level. Establishment of the TVET town has solved this problem well. During construction period, each year, around 5,000 unskilled job opportunities were generated. After construction, each school needs at least 100 person as cleaners, guards, etc. for providing service, and 60% can be provided to women. These jobs are sustainable. By 2014, there are 60,000 teachers and students living in the TVET town, and around 1,400 job opportunities were provided to the local people. And after completing the construction, more students will move from the old schools to the TVET town. Along with the TVET schools, some factories and companies also move to the TVET town, as they can easily recruit students here. The total planned residential people by 2020 will be 200,000, which will generate a lot of job opportunities and consumption. In fact, the local labor supply can t meet the demands. When the schools plan to enter the TVET town, the administrative committee will ask them to employ more local people, and the employment information is widely disclosed to the APs by village committee, newspaper, and website. Before land acquisition, the per capita land holding was around 1 mu, and the total net annual income from the land was 6,000 yuan per household. 7

During the resettlement process, each affected household was entitled to get a job opportunity which was provided by the local labor bureau. Now, there is at least one family member can have one un-skilled job, the cash income can reach averagely 12,000-15,000 yuan per year. In August 2014, Qingzhen City Employment Bureau conducted the survey of Zero-Employment Family in Qingzhen City which means that all family members don t have a job. For the only 100 HHs who are entitled, at least one job was provided to these HHs. Some farmers also used the compensation for small business. In Liyu Village, local farmers bought 32 trucks. Interview with one female farmer, named Xiong Yuzhen, she is operating a small shop near the construction site, and each month can earn 4000 yuan. (ii) Pension system. When the farmers reach the retired age (55 for woman, and 60 for man), they can get the pension. Before land acquisition, land is regarded as the guarantee for the life in the PRC s village. The pension system can solve this problem. The landless farmers who had signed the second round of land contract with village committees and are over 16 years of age can participate in social pension insurance. The cost of the household s portion for landless farmers pension is paid by the individuals and the government, taking an approach of a lump sum paid in the land acquisition process, for which individuals pay 40%, subtracting from the land compensation fees and resettlement fees, and the government pays 60%. How much pension can be received per month is related to the amount of the pension in the special pension account of individuals. For example, if a family loses all 4 mu of their land, the total compensation is 126,000 yuan, around 60,000 yuan need to be paid by the household for the pensions of 3 family members. In 2014, the average pension is 900 yuan per person per month, which is fully accepted by the older people. (iii) (iv) Skill training. So many TVET school have taken their advantage to provide free skill trainings to the farmers as arranged by the government, including cooking, motor repair, electric soldering, etc. The cost of the trainings was paid by the government. This is part of the resettlement program based on the requirements of the local policies and regulations. Qingzhen TVET Town Labor Submarket of Guiyang City Labor Market was established on April 25, 2014, which is responsible for skill training, publishing the job information, and occupational skill appraisal. Skill training with order form has been developed. The labor submarket will collect the labor requirements from the factories and then organize necessary training. 13. As indicated in Table 3, the 479 APs aged between 50 and 65 are the main group whose income are affected. The Qingzhen TVET town administration committee has not received any requests from the APs to arrange job, so this means that all people have adequate job opportunities. They have the priorities to get the jobs generated by the school. The income restoration measures provided by the local government are sufficient. The external monitor will monitor the income restoration of the APs. Table 3 Impacts on Different Group and Income Restoration No Age 4 Percentage APs Impacts 1 Below 16 19.17% 807 No Impact 2 16-50 61.54% 2590 Only minor impact on some APs because most have non-farm jobs. During harvest time, they need 4 The data is from the yearbook. 8

No Age 4 Percentage APs Impacts to go back. Land acquisition released them from the land. 3 50-65 11.37% 479 These are the main group farming on the land. 4 Above 65 7.92% 333 Directly can benefit from the pension system. 100% 4,209 Figure 4 Establish of Qingzhen TVET Town Labor Submarket D. House Demolition and Relocation 14. For house demolition, two options are provided to the AHs, including cash compensation and property exchange. For cash compensation, an independent appraisal agency was selected by the government and the HHs. There is a list of qualified agencies registered in the Qingzhen City Construction Bureau. Finally, it was selected by lottery. Table 4 is the reference rate for compensation, and the final compensation is based on the final market value appraisal and negotiation. If the AHs signed the agreement and move out within the period as specified in the agreement, they can get additional 30% as award. Table 4 Compensation Reference Rate for House and Attachments (yuan/m 2 ) Structure of the house Compensation rate With 30% remark award 1,682 2,186.6 Dry wall 1,702 2,212.6 One side of wall brick Brick-concrete 1,722 2,238.6 Two sides of wall brick 1,742 2,264.6 Three sides of wall brick 1,762 2,290.6 Four sides of wall brick Brick-wood 1,360 1,768 Other 1,202 1,562.6 Simple 476 Other attachments Item Compensation Set Telephone 200 Set Subsidy for moving wire television 200 Household Subsidy for moving solar water heater 500 Set Subsidy for moving Computer broadband 150 household Subsidy for moving air conditioner 600 set Subsidy for moving 9

15. The affected villages are located in the sub-urban area, the compensation for the houses are based on negotiation and appraisal. For those houses which didn t have approval of construction before the cut-off date of each school, based on consultation, if the AHs signed the agreement and move out within the period as specified in the agreement, the following compensation rates were provided. Some local people built simple structure houses with less cost in order to get compensation when they heard that the government planned to construct the TVET town. These houses are built in a very short time and the compensation is fully replacement cost, and the people are fine with it. Table 5 Compensation Rate for Illegal Houses (yuan/m 2 ) Structure of the house Compensation rate Brick-concrete 1,360 Brick-wood 900 Other 500 16. For affected shops, the compensation for business loss was paid on an assessment of actual losses through the scrutiny of relevant tax form records in the Tax Bureau. For the workers, the subsidy was paid base on the wage level of last year from records of the shops/enterprises in the Social Security Bureau. 17. For property exchange, (i) if the demolished legal house is less than 45 m2, an apartment of 45 m2 is provided to them and they don t need to pay the balance; (ii) if the area of the selected relocation house (including the award area) is more than the original legal area of the house, the AHs need to pay the exceeding parts, as presented in table 6. During implementation, as the relocation house is cheaper than the market price (3500 yuan/m2), 80% HHs selected the relocation houses. Table 6 Property Exchange No Exceeding areas (m 2 ) Price (yuan/m 2 ) 1 10 1,500 2 10-20 2,000 3 20-30 2,500 4 30 Market price 18. For those HHs who selected the property exchange, if the AHs signed the agreement and move out within the period (Table 7) as specified in the agreement, they can get additional residential areas and commercial areas as award. If the awarded commercial area is less than 20 m2, the AHs can buy the shortfall based on 3,000 yuan/m2. If the AHs don t want to get the awarded commercial areas, they can get two times residential area. During implementation, the AHs are very satisfied with these award policies. Provision of commercial areas is an effective practice, which can not only encourage the AHs accept house demolition, but also increase their income after land acquisition and house demolition. These commercial areas will not be allocated to the HHs for their own operation, but they can get the profits based on their share. The village committee will operate and manage these commercial areas in a unified manner. During design of the relocation buildings, the commercial units are included on the first floor. Table 7 Awards for the HHs Who Selected the Property Exchange No Sign the Residential Commercial areas Cash (yuan/hh) agreement and move out houses (m 2 ) (m 2 ) 1 Within 30days 20% of the 15% of the 20,000 demolished house 2 31-60 days 15% of the demolished house demolished house 10% of the demolished house 10,000 10

19. Transition arrangement. If the HHs selected property exchange, the transition subsidy is 8 yuan/m2 and for 24 months. Transition subsidy will continue to be paid if the actual transition period is more than 24 months. This is enough for renting the houses. Averagely, the demolished area is 200 m2 for each household, so the transition subsidy is 1,600 yuan per month. If the household rents a 100 m2 house, and it costs 600 yuan per month and they can save the balance. Also, some go to their relative s house to save the rent. Also the HHs who selected property exchange, they can receive two times (when initially displaced and again when relocated to apartment) moving subsidy. Table 8 Other Subsidies Type Rate (yuan/m 2 ) Cash compensation option property exchange option Moving subsidy 8 1 time 2 times Transition subsidy 8 3 months 24 months 20. For those 20% HHs who selected cash compensation, they went to Qingzhen City and Guiyang to buy apartments. The reasons include: (i) their children migrated out and already live there; (ii) before house demolition they operated small business in the cities; and (iii) before house demolition, they have houses elsewhere. So for these HHs, house demolition, cash compensation was a better choice and can improve their living standards. 21. There are 2 house relocation sites both are in the TVET town. Both sites have good location so that the affected HHs can easily work and live. HHs affected by other projects in the TVET town also will be relocated here. 22. Introduction of the east relocation site. The east relocation site is close to the Jinqing road which is the main road of the east part of Qingzhen TVET town and next to the Guiyang Pre-school Education School. The total land area is 410 mu and the total construction area is 220,000 m2. 1,483 relocation apartments will be totally constructed. The first batch of 483 apartments have been delivered to the AHs in May 2015 and people is decorating their houses. Figure 5 East Relocation Site 23. The west relocation site is located in the Laohuzai Village, which is close to the transportation school and Yuanyang Middle School. The total land area is 327.38 mu and the total construction area is 669,000 m 2. The construction site is being constructed by three phases. The 1 st phase will construct 182,000 m 2 houses. Schools, markets, and clinic also will be constructed. Now, 12 buildings are located in D area of phase I is being constructed. Construction of D4, D5, D6, D10, D11 and D11 has been completed. The first 180 apartments have been delivered to the AHs in June 2015 and people is decorating their houses. 11

Figure 6 West Relocation Site E. Ethnic Minorities 24. Land acquisition and house demolition of the TVET town affects the Qinglong Sub-district and Zhanjie Township, which are not the ethnic minorities concentrated townships. According to the yearbook, around 10% of the APs (400 persons) are ethnic Miao, Buyi, etc. These ethnic minorities are living with the Han for long year, and speak Han language. They have the same socio and economic status as Han. F. Special Assistance to the Vulnerable Group 25. Special assistance was provided to the following group, as presented in table 9. For those HHs who receive Minimum Living Security and also have disabled person, they got 6,000 yuan subsidy. Based on the data provided by the Civil Affairs Bureau, around 3% of the APs (120 persons) are receiving Minimum Living Security (200/yuan/month/person). Table 9 Special Assistance to the Vulnerable Group No Group Special subsidy (yuan) 1 HH who is receiving Minimum Living Security 3,000 2 Disabled 3,000 3 Old people (80-89 years old) 5,000 4 Old people (90-99 years old) 8,000 5 Old people (above 100 years old) 12,000 G. Institutional Arrangement 26. Qingzhen TVET Town Administrative Committee (deputy county level) is entrusted by the Qingzhen City Government (county level) to manage the TVET town. The social affairs department of Qingzhen TVET Town Administrative Committee is responsible for all land acquisition and house demolition activities. The social affairs department (SAD) has 60 staff, and annual regular training have been provided by Qinzhen City Land Resource Bureau and Qingzhen City House Demolition Bureau. In the government system, the Qingzhen TVET Town Administrative Committee (deputy county level) is higher than the Qinzhen City Land Resource Bureau (LRB),Qingzhen City House Demolition Bureau (HDB) and the sub-district (township level), so that it can have administrative power to coordinate these government agencies during land acquisition and resettlement. 27. Under SAD, there are two divisions, include the land acquisition division and house demolition division. The land acquisition division is responsible for land acquisition and the income restoration for the farmers. And the house demolition division is responsible for house demolition, and construction of the relocation houses. 12

Figure 7 Land Acquisition and House Demolition Division 28. Other government bureaus also join the implementation, including: (i) the social security bureau is responsible for the pension insurance of the farmers affected by land acquisition; (ii) the notary office joins the detailed measurement survey (DMS) and confirm the result; (iii) the construction bureau is responsible for supervising the quality of the relocation houses; and (iv) the village committee and sub-district/township offices will join the whole process of land acquisition and house demolition. Figure 8 LAR Institutional Arrangement Qingzhen City government Qinzhen City Land Resource Bureau Qingzhen TVET Town Administrative Committee Qingzhen City House Demolition Bureau sub-district/ township government offices Social Affairs Department Land acquisition division House Demolition division Other government agencies 13

H. Implementation Procedures, Information Disclosing and Participation 29. Based on the relevant laws and regulations, land acquisition and house demolition was implemented by the following 6 steps. 30. Step 1: The TVET schools submitted the land using pre-examination to the Qingzhen City LRB. The LRB checked if the proposed land using was comply with the city land using plan based on the Management Regulation of Pre-examination for Construction Project issued by Ministry of Land Resource. Normally, the land acquisition can only commence when the Provincial Government approves transferring the farmland to the construction land (get the quota) with the precondition that land acquisition and resettlement should be implemented strictly comply with relevant laws and regulations. During implementation, LA certificate was not yet approved but land acquisition and house demolition took place. On January 12, 2015, the Guizhou Provincial Land Resource Department held a meeting to discuss the issue and confirmed that 12,000 mu quota will be provided to the Qingzhen TVET town. Without the quota, the Certificate of State-owned Land Using Right can not be issued by the government, although this doesn t affect the compensation to the APs. For the 7 schools in the TVET town which will have civil works, the tourism school has got the land quota, and the remaining schools will get the land quota by 2015. Further monitoring of this issue needs to be conducted. 31. Step 2: Qingzhen TVET Town Administrative Committee then announced the Land Acquisition and House Demolition Notice in the village for 10 days, including the areas to be acquired, the purpose, the applied polices, the proposed compensation rates, the cut-off date, resettlement measures, etc. 32. Step 3: Qingzhen TVET Town Administrative Committee and the local sub-district office/township government organized village meetings to discuss the compensation rates, income restoration measures, house relocation measures, etc. Based on the discussion, Qingzhen TVET Town Administrative Committee formulated the land acquisition and house demolition implementation plan. This procedure took 45 days. 33. Step 4: The implementation plan was sent to Qingzhen City Government for approval, and then disclosed in the village. If the village committee or the villagers didn t agree with the implementation plan, the LRB would organize the hearing meeting based on the Regulation for Hearing (effective from May 1 2004) issued by Ministry of Land and Resources. Based on the result of the hearing meeting, the implementation plan would be revised. In practice, as the implementation plan was prepared based on full consultation, they were all accepted by the villagers and no hearing meeting was required. 34. Step 5: Qingzhen TVET Town Administrative Committee, representatives of land resource bureau, notary office, village committee and affected farmers participated in the detailed measurement survey. The result of the survey, including the location, type and areas of the acquired land, type and areas of the demolished houses, and all other affected assets was confirmed and signed by all participants. This DMS takes 30 days averagely and the result of the DMS was disclosed in the village for 7days. 14

Figure 9 Confirmation of the Results of DMS 35. Step 6: Land acquisition and compensation agreements were signed with the village committee and house demolition agreements were signed with the AHs. 36. Qingzhen TVET Town Administrative Committee has website and Wechat5, and all policies and information have been disclosed. Based on assessment, during the implementation of land acquisition and resettlement, great importance was paid to the public participation, and consultation has been taken with the village committee, government organizations and the villagers. Public participation had made good achievements, and the needs of the villagers were incorporated into the implementation. I. Appeals and Grievance Redress 37. Complete appeal and grievance system had been established to deal with the problems induced by land acquisition and compensation, so the APs could find relevant department for their appeal and grievance. Steps of appeal and grievance are shown as the following. (i) If any AP is aggrieved by any aspect of the resettlement, he/she can state his/her grievance and appeal to the village committee in oral or in written form. If an oral appeal is made, the village committee will record it on paper and process it. The village committee will make a decision on or resolve it in two weeks. (ii) The aggrieved AP can state the grievance and appeal to the sub-district/township office in oral or in written form. The sub-district office will decide on or resolve it in two weeks. (iii) If the aggrieved AP is not satisfied with the decision of the sub-district/township office, he/she can appeal to the SAD of Qingzhen TVET Town Administrative Committee, which would reach a decision within two weeks. 38. As presented in figure 7, the SAD of Qingzhen TVET Town Administrative Committee is located at the first floor of the Administrative Committee office, and this is easy for the AHs to find the place. 39. According to Administration Procedure Law of the People s Republic of China, the APs could appeal to administration departments who had administration rights for arbitration. If the APs were still dissatisfied at the decision of the arbitration, they could appeal to a people s court according to the Civil Procedural Law after receiving the decision of the arbitration. 40. During implementation, the main complaint from some AHs is delay delivery of the 5 It s a very popular software in China, which is available for all kinds of platforms; enjoy group chat; support voice, photo, video and text messages 15

relocation houses at the east relocation site, although some AHs don t care about this as they want to get more transition subsidy. For the AHs whose houses were demolished in 2012, the transition period is more than 24 months. As this is the first relocation site, the Qingzhen TVET Town Administrative Committee took more time to finish the approval procedures. Finally, the transition subsidy was increased by 10% to address the complaints and the first batch 483 apartments have been allocated to 304 HHs whose house demolished in 2012 in the east part of the town by May 2015. III. Huaxi University Town 41. Introduction. The Huaxi University Town was established in December 2009. By now, there are 9 universities/colleges in the town. Only the Guizhou Light Industry Technical College (the College) will be included in the Guiyang TVET project, and a due diligence is conducted for this College. The Huxia District and the Qingzhen City are all administrated by Guiyang City, so the LAR policy framework and implementation for Huaxi University Town is generally the same as the Qingzhen TVET Town. 42. Impacts. 1,000 mu collective land from Seya Village of Dangwu Township, including 600 mu waste mountain land, 100 mu forest land and 300 mu arable land affecting 80 HHs with 300 persons. Around 15,000 m2 houses were demolished and 57 HHs with 214 persons affected. Also the Seya Primary School was affected. Ethnic minorities accounted for 30%, and the main groups were Miao and Buyi. The ethnic minority people are living in mixed communities in Huaxi, which is not far away from Guiyang. They have the similar livelihoods as Han. 43. History of LAR. DMS and consultation was conducted from December 2009 to February 2010. Land acquisition and house demolition completed by October 2010. The Certificate of State-owned Land Using Right for this college was issued in January 21, 2012 by the Huaxi District Government. 44. Compensation for Land. For land acquisition, the Guizhou Provincial Land Administrative Regulation (effective from January 1, 2000 and revised in 2010) and the Integrated Land Acquisition Price of Guiyang City (ZFF[2009] No 100) is the policy basis. Huaxi District is one of the 6 districts of Guiyang, and is within the urban development planning area, so compared with Qingzhen, higher compensation rates are applied. Table 10 Compensation for Land in Huaxi (yuan/mu) No Type of land Compensation rate Social pension fund 1 Arable land 74,000 18,500 2 Other land 29,600 7,400 45. The following measures have been implemented for income restoration: (i) Jobs during construction and operation. During construction period of 2 years, around 500 unskilled job opportunities were generated. Subsequently, 80 permanent jobs including cleaners, guards, etc. were provided, of which 80% went to the AHs, and 80% are women. These jobs are sustainable. During the resettlement process, each affected household was entitled to get a job opportunity which was provided by the local labor bureau. At least one job opportunity is provided to one household. Before land acquisition, the per capita land holding was around 1 mu, and the total net annual income from the land was 8,000 yuan per household. Now, the cash income by working in the College can reach 15,000 yuan, which is higher than the agricultural income loss. (ii) Pension system. When the farmers reach the retired age (55 for woman, and 60 for man), they can get the pension. Before land acquisition, land is regarded as 16

(iii) the guarantee for the life in the PRC s village. The pension system can solve this problem. The landless farmers who sign the second round of land contract with village committees and over 16 years of age shall participate in social pension insurance. The cost of the landless farmers pension is paid by the individuals and the government, taking an approach of a lump sum paid in the land acquisition process, for which individuals pay 40%, subtracting from the land compensation fees and resettlement fees, and the government takes 60%. How much pension can be received per month is related to the amount of the pension in the special pension account of individuals. In 2014, the average pension is 900 yuan per month, which is fully accepted by the older people. Skill training. The College has used its professional advantage to provide free skill trainings to the affected farmers, including cooking, motor repair, electric soldering, etc. The cost of the trainings was paid by the government. Around 50 APs joined the training before they got the jobs in the college. 46. For house demolition, two options included property exchange based on 1 m 2 to 1 m 2 and cash compensation. All HHs selected property exchange. The Dabajing house relocation site is located in the Huaxi University Town, which is near the entrance to the expressway to Guiyang. In July 2013, the relocation apartments were allocated to the AHs. Averagely, each household got 2 or 3 apartments, and now they get the rent from 1 or 2 units. The transition subsidy was 8 yuan/m 2 /month and the 2 times of moving subsidy (8 yuan/m 2 ) was paid. Compared with before, the living condition is better, and interviews with the APs verified this. Income restoration measures conducted by the local government are sufficient, and the livelihoods have been restored. Figure 10 Dabajing Relocation Site for Huaxi 47. Institutional Arrangement. The Huaxi District Government established the LAR Headquarter with 80 staff for all projects in the university town. Other government bureaus also join the implementation, including: (i) the social security bureau is responsible for the pension insurance of the farmers affected by land acquisition; (ii) the notary office joins the detailed measurement survey (DMS) and confirm the result; (iii) the construction bureau is responsible for supervising the quality of the relocation houses; and (iv) the village committee and sub-district/township offices join the whole process of land acquisition and house demolition. 48. Consultation and GRM. During preparation, DMS, negotiation, and signing the agreement, full consultation activities were conducted. GRM at different level was established and effective. And during implementation, there is no significant complaint received. 17

49. Steps of appeal and grievance are shown as the following: (i) If any AP is aggrieved by any aspect of the resettlement, he/she can state his/her grievance and appeal to the village committee in oral or in written form. If an oral appeal is made, the village committee will record it on paper and process it. The village committee will make a decision on or resolve it in two weeks. (ii) The aggrieved AP can state the grievance and appeal to the sub-district/township office in oral or in written form. The sub-district office will decide on or resolve it in two weeks. (iii) If the aggrieved AP is not satisfied with the decision of the sub-district/township office, he/she can appeal to the LAR Headquarter of Huaxi District Government, which would reach a decision within two weeks. 50. According to Administration Procedure Law of the People s Republic of China, the APs could appeal to administration departments who had administration rights for arbitration. If the APs were still dissatisfied at the decision of the arbitration, they could appeal to a people s court according to the Civil Procedural Law after receiving the decision of the arbitration. IV. Conclusion 51. Based on reviewing documents and due diligence of the completed LAR, table 11 compares the practice to date with the ADB resettlement principles in the SPS 2009. 18

Table 11 Comparative Analysis of Legal Framework and ADB Safeguard Policy Statement ADB Safeguard Policy Statement Corresponding Legal Provisions Local Practice (D) Recommended Gap-filling Measures Policy Principle 1: Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. Policy Principle 2: Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. National legislation has no similar requirements. Lower levels of government generally are responsible for determining project preparation processes, but generally do not specifically require a separate early screening process. According to the Land Administration Law of the People s Republic of China, Once a plan for compensation and resettlement subsidies for requisitioned land is decided on, the local people s government concerned shall make it known to the general public and solicit comments and suggestions from the collective economic organizations, the land of which is requisitioned, and the peasants. State council [2004] number 28 states that (1) inform of land acquisition condition, compensation rates, resettlement paths; (2) affirm the result of land acquisition surveys (3) organize an evidentiary hearing if it is necessary (4) establish and improve the and reciprocal mechanism of resettlement disputes; During feasibility study stage for each school, efforts were made to minimize LAR impacts. Before land acquisition, the Qingzhen TVET Town Administration Committee conducted the detailed measurement survey. No socio-economic survey is conducted. Qingzhen TVET Town Administration Committee and other local government agencies strictly follow the national and provincial laws and regulations, and conducted meaningful consultations for LAR impacts and mitigation measures. Qingzhen TVET Town Administrative Committee has website and Wechat 6, and all policies and information have been disclosed. Complete appeal and grievance system had been established to deal with the problems induced by land acquisition and 6 It s a very popular software in China, which is available for all kinds of platforms; enjoy group chat; support voice, photo, video, and text messages No further LAR will be required for the RBL program, so no action is required. No further action required. 19

ADB Safeguard Policy Statement Corresponding Legal Provisions Local Practice (D) Recommended Gap-filling Measures Policy Principle 3: Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. Policy Principle 4: Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. Ministry of Land and Resources [2004] 238 requires that (i) inform of land acquisition condition, compensation rates, resettlement paths; (2) affirm the result of land acquisition surveys; (3) organize an evidentiary hearing State Council [2004] number 28 states that (1) There are projects bring about stable profit. Farmers use land use right as shares; (2) within a planned urban area, improvement of employment system and social security to safeguard AP s lives. (3) out of a planned urban area, land resettlement, employment resettlement, or displacement resettlement shall be implemented (4) carry out employment trainings. Ministry of Land and Resources [2004] 238 requires that (1) Agricultural production resettlement (2) reemployment resettlement (3) using the land as share of the project (4) relocation resettlement. National legislation relating to urban housing provides for independent valuation, compensation at market value, or provision of replacement housing of equivalent value at the request of affected persons. (See State Council compensation, so the APs could find relevant department for their appeal and grievance. Cash compensation, pension system, skill training and job opportunities was provided. Qingzhen City Employment Bureau conducted the survey of Zero-Employment Family, and at least one job opportunity is provided to each affected HH. For house demolition, two options are provided to the AHs, including cash compensation and property exchange. Transition subsidy and moving subsidy is provided. Relocation houses locate in the core area of the Qingzhen TVET Town, and commercial houses are provided to the village committee for developing. Land value is based on a multiple of annual gross output value and housing is assessed based on External monitoring for resettlement is required for the livelihood restoration and the progress of the relocation house. 20

ADB Safeguard Policy Statement Corresponding Legal Provisions Local Practice (D) Recommended Gap-filling Measures Policy Principle 5: Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. Policy Principle 7: Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. Regulations on Collection and Compensation for Houses on State-Owned Land, 2011.) Arrangements generally assure security of tenure. Compensation rates are administratively determined through application of prescribed valuation processes. According to the Guidelines of Employment and Social Security for the Farmers Affected by Land Acquisition issued by Guizhou Government (QFF[2011]26), for those farmers who become poor after land acquisition, they need to be included in the minimum living guarantee system. No similar requirements; legislation restricts compensation to those legally entitled. appraisal. Special assistance was provided to vulnerable people. Displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets at replacement costs. External monitoring required. External monitoring required. is is 21