RP-0008 VOL. 1. Resettlement Action Plan for Shenyang Urban Transport Project. The World Bank Loan Liaoning Urban Transport Project

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized The World Bank Loan Liaoning Urban Transport Project Resettlement Action Plan for Shenyang Urban Transport Project RP-0008 VOL. 1 Shenyang Urban Construction and Renewal Project Office Sept. 1998

Certified bv: Ning Xianjie Reviewed by: Sun Dong, He Fengqin Checked bv: Sun Shuliu, Chen Weixin, Sang Guilin Prepared bv: Sun Dong, Chen Weixin Sun Shuliu, Sang Guilin, Tangxiao Staff Taking Part in the Project: Shenvang Urban and Rural Construction Commission: Ning Xianjie Shenyang Urban Construction and Renewal Pro_ect Office Sun Dong, Chen Weixin, Sang Guilin Shenyang Municinal Engineering Resettlement Office: Sun Shuliu, Tang Xiao, Chen Guang Shenvang Municipal Engineering Design and Research Institute: Lin Xianmao

Acronyms and Abbreviations LUCRPO - Liaoning Urban Construction & Renewal Project Office SPLG - Shenyang Transport Project Leading Group SUCRPO - Shenyang Urban Construction & Renewal Project Office SHDMO - Shenyang House Demolition Administration Office SRO - the Resettlement Office of Shenyang Municipal Engineering Construction and Administration Bureau SLB- Shenyang Land Planning and Administration Bureau SYMEDRI - Shenyang Municipal Engineering Design and Research Institute SRI - Sociology Research Institute of Liaoning Social Sciences Academy PAP - Project Affected Person PAL - Project Affected Labor PALA - Project Affected Land Acquisition PPR - Person with Property Right UPR - Unit with Property Right mu - Land Measure in Chinese (15mu = 1hectare)

1. Basic Situation of the Project 1.1 Brief Description of the Project Shenyang Urban Transport Project (SUTP) is one of the three Urban Transport Comprehensive Management Projects (Shenyang Urban Transport Project, Fushun Urban Transport Project (FUTP), and Anshan Jianguo Road Traffic Corridor Project(AUTP)), which include: * Infrastructure Component--the construction and renewal of Beiyi Road, Lianhe Road, Nanwu Road, and Pangjiang Street * Traffic Management Component-connect missing links and widen bottleneck sections of Shenzhou road, Zhulin road, etc.; comprehensive management for more than 10 urban arterial roads, such as Shisanwei road; establish exclusive lanes for buses, bicycles and motor vehicles. * Public Transport Component--establish and improve more than 10 public transport routes, improve the maintenance and repair capacity of buses central maintenance and repair unit, and rebuild 2 public transport terminals. * Road Maintenance Component--maintain and rebuild 42 urban roads of grade 1, grade 2 and grade 3, purchase some maintenance equipment to increase the functions of the existing roads. For the sketch map of the project, see the attached map. The project is to start in April 1999, and to complete in Sept. 2002. It is planned to built several roads including Shenzhou Road with Retroactive Finance in 1998. 1.2 Areas Affected and Served by the Project Shenyang City, Liaoning Province is not only the area affected but also the area served. The project will play an important role in meeting the needs of urban construction development, improving the residents' trip travel conditions, and in solving urban traffic problems. After the project is built, the traffic and investment environment, and the social and economic development in the areas along the project lines will be improved. After it is built it will meet the traffic functions of both high speed and large capacity and solve the traffic problems of long distance and crossing regions in Shenyang City. Therefore, it will strength the traffic relations among the urban areas, between groups, and, the center area and suburb areas. It not only solves problems on traffic jam, but also improves the traffic capacity of the roads. It will promote public transport development, and ensure public transport priority. It will play an important role in urban traffic and in ensuring the smooth traffic from and to the city.

1.3 Social and Economic Background in the Project Area Shenyang City, the capital of Liaoning Province, is located in the south part of the northeast area of China. It is situated in the central north part of the province. It is the political, economic, cultural, science and technological center, and the largest city, urban traffic hub, and distributing center of goods and materials in the northeast part of China. Shenyang City is at E120 0 25'09" to 123048'24", and N 41o11'51 " to 43002'13". The stretch from east to west is 115 km, which from south to north is 205 KM. The total area is 12,980 km 2. Shenyang is adjacent to Fushun on the east; Anshan, Bengxi and Liaoyang on the south; Fuxin and Jinzhou on the west; Tieling, Jilin Province and Inner Mongolia Autonomous Region on the north. It is located in the core part of the city cluster in central Liaoning Province. 9 districts (Dadong, Shenhe, Heping, Tiexi, Huanggu, Donglin, Yuhong, Xinchengzi, and Sujiatun), 4 counties (cities) (Xinmin, Liaozhong, Kangping, and Faku) are under its jurisdiction. The city planning central area is 1150 km2, the area of the core city proper is 468 km2. Urban built up area is 186 km2. Till the end of 1996, the total population of the city is 6.71 million, urban population is 4.767 million, and population in the built up area is 3.30 million. In 1996, the total GNP of the city is RMB 77.18 billion yuan, average GNP/person is RMB 11,500 yuan. Original value of fixed assets is RMB 65.61 billion yuan. Average GNP/labor is RMB 20,100 yuan. Land acquisition and resettlement for the project will affect 3,588 households, 90 enterprises, 18 institutions, 253 shops; total population affected is 21,977 persons. Land acquisition is 1081.2 mu. Resettlement houses is 169,685.1 m 2. 1.4 Measures Taken to Minimize Resettlement 1.4.1 Making Full Use of Existing Roads, Reducing the Quantity of Demolition In the design program of the project, from the point of view of the combination of short term and long term, the existing roads will be used fully to enhance their maintenance in order to reduce the quantity of land acquisition and house demolition. When meeting the prerequisite to the project design conditions and traffic functions, in order to reduce the quantity of house demolition and the impacts on public facilities, things such as adjusting the planning lines of some sections, avoiding the permanent multiple-storey buildings, park, green land (trees), public utility etc. will be carried out. 1.4.2 Optimizing the Project Program, Reducing the Quantity of Demolition In the project design, lots of alternatives have been compared times and again on the roads and overpass for which the quantity of land acquisition and house demolition is

large, so as to avoid demolishing multiple-storey buildings, enterprises, institutions, and residence area where there is a large population and avoid pipes and lines underground and infrastructures on the ground, and reduce the demolition quantity greatly. For example, after comparing alternatives again and again, the construction of the area between the west part of Lianhe Road and Gongheqiao will reduce demolition quantity of 3 high residential buildings, about 15,000 m2, 140 households. 1.4.3 Integrating with the Transformation of the Old City Proper, Reducing Adverse Impact, Improving the Housing Conditions and Living Environment Most of the house demolition area of the project is in the shantytown. Most houses were built in 1940s and 1950s. They are simple, of low quality, their patterns are out of date, and living environment is not good. They are the houses, which should be transformed urgently by the city. The above houses will be demolished for the project construction. The original residents will move into the new houses in the relocation area. Their house quality is greatly improved and their housing conditions and living environment are also improved. 1.4.4 Building Relocation Houses as Early as Possible, Avoiding or Reducing the Impacts on the PAPs and Enterprises and Institutions In the relocation and implementation of the project, on the basis of full survey and check on the residents, enterprises, institutions and shops involved in the project, the relocation houses for the above will be built as early as possible to shorten the transition period and avoid or reduce the closedown losses. 1.5 Technical-Economic Feasibility Study Shenyang Municipal Engineering Designing and Research Institute (SYMEDRI) undertook "Feasibility study Report of Shenyang Urban Transport Project (SUTP)", completed it in Oct. 1996 and submitted it to higher department concerned in Dec. 1996. 1.6 Project Design Procedure In Oct. 1994, Shenyang Planning Design and Research Institute (SPDRI) completed "Shenyang Master Plan Report", and had it passed the examination of the departments concerned and specialists of the province at the end of 1995. In July 1996, Shenyang Urban Construction and Renewal Project Office (SUCRPO) drew up and completed "Proposal for Shenyang Urban Transport Project". In Oct. 1996, SYMEDRI drew up and completed "Feasibility Study Report of SUTP", and completed the additional report in Oct. 1997.

In Dec. 1996, SPDRI provided the red line scope of land acquisition and resettlement of the project. In Feb. 1997, SYMEDRI provided the design schemes of the project. From March 1997 to April 1997, SUCRPO together with the Resettlement Office of Shenyang Municipal Engineering Construction and Administration Bureau (SRO) conducted the census and property survey on land acquisition and resettlement. From May 1997 to June 1997, SRO together with the Sociology Research Institute of Liaoning Social Science Academy (SRI) conducted surveys on social and economic impacts. In Oct. 1997, SUCRPO conducted additional surveys on social and economy and public opinions. 1.7 Ownership and Institutional Organ of the Project The project is an urban infrastructure project, it constructed at cost of Shenyang City Government. The construction funds compose of two parts i.e. domestic supporting funds and the World Bank' loans. The total investment of the project is RMB 1.3 billion yuan. The former is obtained from city maintenance costs and other financial incomes of Shenyang City for years, which is RMB 0.76 billion yuan; while the latter is 65 million USD. SUCRPO is responsible for management of the project construction. SRO is responsible for land acquisition, resettlement and implementation. Shenyang House Demolition Management Office and Shenyang Land Planning and Administration Bureau are responsible for land acquisition and resettlement supervision, and arbitration of the project. 1.8 Social and Economic Survey Procedure 1.8.1 Census and Property Survey From March to June 1996, SUCRPO together with the SRO, neighbor commissions, institutions and enterprises involved in land acquisition and resettlement of the project registered and surveyed houses of enterprises and institutions, attachments, land. Meanwhile they conducted sampling surveys on the public opinions (300 households were surveyed by sampling), and collected their suggestions on the relocation policies and schemes.

At the same time SUCRPO held a meeting with the owners of infrastructures and the administrative organs in the project area. The project situation and land acquisition and demolition scope were introduced. The owners of the units provided the quantity, specifications, suggestions on moving, and estimate of reconstruction costs of the infrastructure affected according to the project design program. All of the above were submitted to SRO for collecting. The land acquisition will be measured and calculated in kind after the decision of the project construction, before each of the subordinate works is commenced, and in implementing land acquisition and demolition. 1.8.2 Social and Economic Survey In March 1997, Liaoning Social Sciences Academy was entrusted by SUCRPO to conduct social and economic survey of the project, and provided social and economic survey tables and forms in April 1997. From May 1997 to June 1997, SUCRPO and SRO conducted social and economic survey. The Sociology Research Institute of Liaoning Social Sciences Academy is responsible for calculating and analyzing the survey data. 1.9 Preparation for the Resettlement Action Plan(RAP) Since Nov. 1995, SUCRPO began to compile the Resettlement Action Plan (RAP) for the project. From June to July 1996, it conducted a preliminary survey on the impacts on the land acquisition and resettlement and the social economy. From then on, it made field visits to the affected households and began to compile the RAP. In Oct. 1997, SUCRPO drew up the RAP. In Oct. 1997, they conducted additional surveys on social economy. On Nov. 15, 1997 the RAP to be submitted for examination has been completed. SUCRPO is responsible for completing the RAP. SUCRPO plans to invite independent institutions or experts for resettlement independent monitoring and evaluation of the project. 1.10 Schedule for Project Preparation Contract Award, Construction, and Implementation The demolition preparation work of the project is to begin in August-Oct. 1998. Each sub-project is to be constructed one section by one section. Land acquisition and relocation will be conducted according to each of the sub-project construction time but before civil engineering construction.

SUCRPO sign contracts with the households, shops, institutions and the enterprises for land acquisition, demolition and compensation before relocation. Removal is to complete 45 days before civil engineering construction. 1.11 Laws and Regulations on Compensation and Relocation OP.R.C. Real Estate Administration Law[O EP.R.C. Urban House Demolition Administration RegulationsEl ElOperational Directive 4.30: Involuntary ResettlementE O Liaoning Province Urban House Demolition Administration Detailed Enforcement Regulations El ElShenyang City Urban House Demolition Administration Temporary Provisions[l OResolution on National Land Use with Compensation by Shenyang City GovernmentEl 2. Project Impacts Shenyang Urban Transport Project (SUTP) includes 4 parts which are infrastructure component, traffic management component, public transport component, road maintenance component. Of these only resettlement quantity of infrastructure component is rather large and its resettlement work is responsible for us Project Unit, while other components have nothing to do with resettlement, or their resettlement work has already been finished by other units (see Chapter 18). So, in following text, Chapter 4-11 will be only related to infrastructure component (See Table 2.1). The whole project will affect 3,405 households directly, 183 households of enterprises, institutions, and shops who will be moved for the expansion land acquisition and resettlement, totally 3,588 households will be affected. The population directly affected by the project is 10,423 persons. 549 persons of enterprises, institutions, and shops who will be moved for the expansion land acquisition

and resettlement, totally 10,972 persons will be affected by the project. 70,867.1 M2 various houses will be directly affected by the project, 5,490 M various houses of the residents of the enterprises, institutions, and shops to be moved for the expansion land acquisition and resettlement, totally 76,357.1 M 2 residential houses will be affected. The project will affect 253 shops, 18 institutions and 90 enterprises. Totally, 93,328 M 2 houses of these shops, enterprises and institutions will be demolished. The population of these shops, enterprises and institutions affected by the project is 11,005 persons, of which nobody would lost their job for the project. Totally, 1081.2 mu land will be required for the project, it is all state land, where 878.1 mu is direct land use by the project, and 203.1 mu is the land for demolition and relocation. The area of various houses to be demolished for the project is 169,685.1 M 2. The total number of the households affected is 3,588. The total population affected is 21,977 persons. Trees affected is 11840, grassland affected is 67548 M2 and bushes affected is 6257 2 M2. The length of various pipes and lines affected is 46,922 m. of which, infrastructure component impactsw The project will affect 2,924 households directly, 183 households of enterprises, institutions, and shops who will be moved for the expansion land acquisition and resettlement, totally 3,107 households will be affected. The population directly affected by the project is 8,780 persons. 549 persons of enterprises, institutions, and shops who will be moved for the expansion land acquisition and resettlement, totally 9,329 persons will be affected by the project. 57,253.3 M2 various houses will be directly affected by the project, 5,490 M2 various houses of the residents of the enterprises, institutions, and shops to be moved for the expansion land acquisition and resettlement, totally 62,743.3 M2 residential houses will be affected.

The project will affect 210 shops, 16 institutions and 65 enterprises. Totally, 65,011 M 2 houses of these shops, enterprises and institutions will be demolished. The population of these shops, enterprises and institutions affected by the project is 7,592 persons, of which nobody would lost their job for the project. Totally, 1081.2 mu land will be required for the project, it is all state land, where 878.1 mu is direct land use by the project, and 203.1 mu is the land for demolition and relocation. The area of various houses to be demolished for the project is 127,754.3 M2. The total number of the households affected is 3,107. The total population affected is 16,921 persons. Trees affected is 11840, grassland affected is 67548 M 2 and bushes affected is 6257 M2 M. The length of various pipes and lines affected is 46,922 m. Table 2.1 General Introduction Infra- Traffic Public Maintenanc Type Total structure manage- transport e componen ment component. t PAPs 21977 16921 4886 170 0 Demolished 3588 3107 481 0 0 households Shops affected 253 210 43 0 0 Enterprises affected 90 65 24 1 0 Institutions affected 18 16 1 1 0 Demolished area(m 2 ) 169685. 127754.3 41930.8 0 1 2.1 Population Affected Table 2.2 Population Affected

Type No. of PAPs (person) Infrastructure Component Population of residents to be moved 9329 Where population of those to be moved 549 for expansion land acquisition and resettlement Staff of institutions 456 Staff of enterprises 5815 Staff of shops 1321 Subtotal 16921 Others Population of residents to be moved, 1643 Where population of those to be moved 0 for expansion land acquisition and resettlement Staff of institutions, enterprises and shops 3413 Subtotal 5056 Total 21977 2.2 Buildings Affected of Infrastructure Component Table 2.3 Buildings Affected of Infrastructure Component Type Quantity (%) Area of Houses to (%) be Demolished (m 2 ) Dwellings public houses 1096 35.2 24359 19.1 (including those to private houses 699 22.4 14107.8 11.0 be moved for expansion Unit-owned 1141 36.8 21236.5 16.6 houses land acquisition and Illegal houses 171 5.6 3040 2.4 resettlement) Subtotal 3107 100 62743.3 49.1 Shops licensed 135 64.3 11574 9.1 Non-licensed 75 35.7 3298 2.5 Subtotal 210 100 14872 11.6 Units institutions 16 19.8 7296 5.7 enterprises 65 80.2 42843 33.6

ISubtotal 81 I 100 I 50139 39.3 l Total 127754.3 100 Note: Public house: the houses' property rights belong to the State, and the houses are managed by house administrative agency; * Unit-owned house: the houses were built and managed by the enterprises and the institutions, and the houses' property rights belong to the units; Illegal house: illegally established houses without the approval of agencies in charge of real estate, planning, land and municipal construction etc.; * Licensed shop: legal business shop with all the necessary licenses; * Non-licensed shop: the shop without business licenses; 2.3 Land Use of Infrastructure Component Table 2.4 Land Use of Infrastructure Component Type Land Area (mu) Direct land use 878.1 Land for demolition and relocation 203.1 Total 1081.2 2.4 Infrastructure and Ground Attachments Affected of Infrastructure Component Table 2.5 Infrastructure and Ground Attachments Affected of Infrastructure Component Type Unit Quantity Infrastructure water supply pipelines m 612 drain pipelines m 2550 gas pipelines m 612 Communication pipelines m 11828 Power pipelines m 21420 Trolleys power-line m 9900 Sub-total m 46922

Ground Attachments Trees 10839 Grassland m 2 64160 Bushes m 2 5645

2.5 House Attachments Affected of Infrastructure Component Table 2.6 House Attachments Affected of Infrastructure Component Owner T e Unit Quantity Residents Telephone set 419 Cable TV household 384 2.6 Shops Affected of Infrastructure Component Table 2.7 Shops Affected of Infrastructure Component Type Quantity (unit, Percentage(%) person) Nature state-operated 23 11.0 Collective 29 13.8 Individual 158 75.2 Subtotal 210 100 staff on-the-job 1104 83.6 Retired 217 16.4 Subtotal 1321 100

2.7 Enterprises and Institutions Affected of Infrastructure Component Table 2.8 Enterprises and Institutions Affected of Infrastructure Component Type Quantity (unit, Percentage(%) person) Nature State-operated 29 35.8 Collective 36 44.4 Individual 0 0 Institutions 16 19.8 Subtotal 81 100 staff on-the- Enterprises 4580 92.3 job Institutions 381 7.7 Subtotal 4961 100 staff retired Enterprises 1235 94.3 Institutions 75 5.7 Subtotal 1310 100 Total No. of Enterprises 5815 92.7 staff Institutions 456 7.3 Subtotal 6271 100 2.8 Vulnerable Groups Affected of Infrastructure Component Table 2.9 Vulnerable Groups Affected of Infrastructure Component Type No. of No. of households Persons Disabled persons 10 15 Old person families 11 22 Persons suffering from serious illness 7 9 Women, single parent families 10 20 Elderly persons of no family, children 6 12 Mentally handicapped persons, dementia, mental 9 9 disease Total 53 87

3. Legal Framework Land acquisition and resettlement of the project are based on the following laws and policies: P.R.C. Urban Real Estate Administration Law P.R.C. Urban House Demolition Administration Regulations Operational Directive 4.30: Involuntary Resettlement Liaoning Province Urban House Demolition Administration Detailed Enforcement Regulations Shenyang City Urban House Demolition Administration Provisions Resolution on National Land Use with Compensation by Shenyang City Government 3.1 Laws and Regulations 3.1.1 Main Laws and Regulations on House Demolition (1) Main Provisions of "P.R.C. Urban Real Estate Administration Law" are as follows: Allocation of land use right means that approved by the government over county level, after the land users have paid compensation, relocation costs etc., they can use the land, or they can get the land use right free of charge. If the land use right of the following land for construction is really necessary, it can be approved and allocated by the government over county level: land for urban infrastructure and public utilities; land for energy, transport, water conservancy etc. projects which are the state key projects. (2) Main Provisions of "P.R.C. Urban House Demolition Administration Regulations" are: The unit (person) who needs to demolish houses in the regulations refers to the construction unit or individual who has got the house demolition license. The person whose houses needed to be demolished in the regulations refers to the owners of the houses and their attachments to be demolished (including the person in charge, the person in charge of the national houses and their attachments authorized by the state) and the users of the houses and attachments to be demolished. The compensation for demolition is carried out by exchanging ownership, compensating currency, or by the combination of both. The compensation currency amount should be calculated as replacement price and building area of the houses demolished. The relocation place of the users of the houses to be demolished should be decided according to both the requirements for construction region and the nature of the construction project of the city planning, and based on the principles advantageous to

implementing city planning and to transforming old city proper. Non-residence houses demolished should be rebuilt as per their original building area. The users of the houses demolished are to move for the house demolition, they should get subsidy for moving from the construction unit or individual. During the actual transition period, if the users of the houses to be demolished relocate by themselves, they should get subsidy for temporary relocation from the construction unit or individual. Certain amount of subsidy should be paid if the non-residential houses demolished cause closedown and economic losses. (3) Policy Objectives of Operational Directive 4.30: Involuntary Resettlement The objective of the Bank's resettlement policy is to ensure that the population displaced by a project receives benefits from it. Involuntary resettlement is an integral part of project design and should be dealt with from the earliest stages of project preparation, taking into account the following policy consideration: * Involuntary resettlement should be avoided or minimized where feasible, exploring all viable alternative project designs. For example, realignment of roads or reductions in dam height may significantly reduce resettlement needs. * Where displacement is unavoidable, resettlement plans should be developed. All involuntary resettlement should be conceived and executed as development programs, with resettlers provided sufficient investment resources and opportunities to share in project benefits. Displaced persons should be (i) compensated for their losses at full replacement cost prior to the actual move; (ii) assisted with the move and supported during the transition period in the resettlement site; and (iii) assisted in their effort to improve their former living standard, income earning capacity, and production levels, or at least to restore them. Particular attention should be paid to the needs of the poorest group to be resettled. * Community participation in planning and implementing resettlement should be encouraged. Appropriate patterns of social organization should be established, and existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible. Resettlers should be integrated socially and economically into host communities so that adverse impacts on host communities are minimized. The best way of achieving this integration is for resettlement to be planed in areas benefiting form the project and through. consultation with the future hosts.

* Land, housing, infrastructure and other compensation should be provided to the adversely affected population, indigenous groups, ethnic minorities, and pastoralists who have usufruct or customary rights to the land or other resources taken for the project. The absence of legal title to land by such groups should not be a bar to compensation. (4) Main Regulations of "Liaoning Province Urban House Demolition Management Detailed Enforcement Regulations" are: compensation for non-residential houses should be calculated according to the following provisions: (A) The houses and attachments demolished, as per the costs calculated according to the evaluation standard; while the facilities which can not be resumed, as per the costs calculated according to the replacement price and the new rate. (B) costs for land acquisition due to moving to other place, or costs for allocating land with the same area as that of the original land (C) Costs of moving and installing the equipment calculated as per freight transport prices and equipment installation price. (D) other costs that should be compensated Houses for production and business demolished should be relocated according to their original building area and structure. Subsidy for closedown losses and staff's temporary relocation expense should be paid to owners and users of the houses by the construction unit or individual. The price difference will not be calculated, if the public residence houses are demolished and exchange ownership, and also the compensation building area is equal to the original one. If the compensation building area is more than the original one, the price difference will be calculated as per the price of commercial houses. If the compensation building area is less than the original one, it will be calculated as per the replacement price and the new rate. If the owners of the private residence houses demolished want to keep their ownership, the construction unit or individual can exchange ownership by newly built houses or other houses as per the building area of the houses demolished. The users of the residence houses demolished can be relocated as per their original house living area. If the users of houses demolished move from a good region to a bad region, their relocation house area can be increased by a certain number or they can get extra lump-sum relocation subsidy and moving fees. (5) Main provisions of "Urban House Demolition Management Detailed Enforcement of Shenyang City" are: City house demolition must be in accordance with the city planning and advantageous to city transforming and construction. Those houses which are dangerous, in shantytown, and in the area whose environment is seriously polluted should be demolished first.

The City House Property Administration office is the unit that is in charge of the city house demolition, and it manages the city house demolition in a united way. When the construction unit or individual has sufficient funds as costs for building houses, relocation subsidy, compensation of the owners and users, the house demolition department in charge can approve it to demolish. The city government should decide the minimum standard of the guarantee funds. They must be used in house demolition. They should not be diverted or misappropriated. During the house demolition period, the construction unit or individual should sign house demolition agreements with the owners and users. The agreements should include compensation method, compensation amount, relocation place and area, demolition time limit, transition way and time limit, responsibilities of breaking the agreements and other items that the parties concerned think it necessary. When signing house demolition agreements, any dispute arises should be settled by the house demolition department in charge based on laws and regulations. If the owners and users belong to the house demolition department, it should be settled by the government at the same level. If any party concerned is not satisfied with the decision, it can apply for reconsidering or submitting for arbitration. During moving time limit, the owners and users should look for houses for transition by themselves. The construction unit or individual should offer transition houses or lumpsum relocation houses to the households with special difficulties, with social relief, and with disabled persons. The construction unit or individual should compensate the owners [including the person(s) in charge, the person(s) in charge of the national houses and their attachments authorized by the state] of the houses and attachments demolished. The compensation for demolition is carried out by exchanging ownership, compensating by evaluating, or by the combination of both. The area of exchanging ownership should be calculated according to the building area of the houses demolished. The compensation amount by evaluating should be calculated as per the replacement price and the new rate of the building area of the houses demolished. The price difference will not be calculated, if the public residence houses are demolished and exchange ownership, and if the compensation building area is equal to the original one. If the compensation building area is more than the original one, calculated as per the following relevant regulations; if the compensation building area is less than the original one, calculated as per the replacement price and the new rate. The price difference will not be calculated, if the owners of the private residence houses demolished exchange ownership, and if the compensation building area is equal to the original one. If the compensation building area is more than the original one, calculated as per the following relevant regulations; if the compensation building area is less than

the original one, calculated as per the evaluation market price. Regarding the houses and their attachments for public utilities demolished the construction uni" or individual should rebuild as per their original nature structures and size. Rebuilding should be in accordance with the city planning. Houses, which can not be rebuilt, should be compensated as per replacement price. The owners and users who move to other places because of their house demolition should get lump-sum subsidy for moving from the construction unit or individual. For those who arrange transition houses by themselves, the construction unit or individual should pay temporary relocation subsidy. On the basis of the facts, the city government should decide the standards of subsidies for moving and temporary relocation. During the stipulated transition period, the construction unit or individual should offer transition houses not pay temporary relocation subsidy. Compensation for non-residential houses should be calculated as per the following regulations: (A) The facilities which can not be resumed, as per the costs calculated according to the replacement price and the new rate. (B) costs for land acquisition due to moving to other place, or costs for allocating land with the same area as that of the original land (C) Costs of moving the equipment calculated as per freight transport prices and equipment installation price. (D) During the demolition time limit, if the enterprises stop production on account of the demolition, then, each of the staff unemployed and the retired persons should get the average wages (including the state and local subsidies) of the first 6 months of the year of the enterprises as subsidies of living. (E) According to income tax, each year compensate 10-20% of total net profit in past 2 years. The relocation place of the users of the houses to be demolished should be decided according to the city planning and the nature of the construction project. The owners and users without house property registers can be relocated in other places. If the users of houses demolished move from a good region to a bad region, they should be compensated by the construction unit or individual. The city government should decide the compensation standard. The residence houses of the owners and users should be relocated nearby as per their original living area and the suite type of standard houses. Payment for the added area of the standard suite houses whose area is larger than the original area should be charged as per the building price of the new houses. The ownership and payment should be linked up with house transformation policies. Besides the standard suite houses, if the owners and users need more area, they should pay for the added area as per the commercial house price in the relocation area.

With the consent of the owners and users, the construction unit or individual can relocate them in currency as per the previous provisions. The owners and users of the houses without house proper registers will be relocated as per the smallest standard suite houses, the relocation area is the area to be paid as per the previous provisions. The residence house relocation should be designed as per "Regulations on City Residence Construction Standard of Shenyang City". The drawings must be examined by the city house demolition department in charge. Houses built are not in accordance with the stipulated standards can not be used to relocation the owners and users. Time limit of relocating in the original area is calculated from the date on which demolition is announced. If the planning building area is less than 50,000 m, the time limit is 1.5 years; if more than 50,000 m2 but less than 100,000 m2, 2 years; if the building area of multiple-story buildings is more than 100,000 m 2, the time limit is 2.5 years. The construction unit or individual should build relocation houses first and then build other houses to ensure that the owners and users can relocate in their original area on time. If the time limit of relocating in their original area of the owners and users who look for relocation houses by themselves is in excess of the transition time limit, and it is on the construction unit's or the individual's account, the unit or the individual should add temporary relocation subsidy. If the excessive time limit is less than 1 year, 100%/month should be added; if over 1 year, 300%/o/month should be added. 3.1.2 Relevant Regulations on Land Use Resolution on National Land Use with Compensation by Shenyang City Government specifies: Land in the 9 districts, except the land use for state organs and military affairs approved by the city government, land use for city infrastructure and public utilities, land use for important state supporting projects such as energy, transport, water conservancy etc.; other land use which is offered by means of allocating stipulated by laws, regulations, should be used with compensation, i.e. land is exchanged with compensation. Land use right exchange should be conducted by auctioning and bidding, if there are competitive assignation conditions; it can be conducted by agreements if there are no competitive assignation conditions. Before land transfer, land users must apply for it, and sign land use right transfer contracts with the city land management bureau after being approved by the city government, pay for land transfer, register as per laws, get national land use certificates and then obtain land use right. Based on the regulation, if land in various development zones is within the scope of compensation use, it must be used with compensation. The development zones or land

users should sign land use transfer contracts with the city land management bureau, get national land use certificates and then obtain land use right legally. 3.2 Relocation and Compensation Policies Based on the laws and regulations of mentioned above and Guideline OD4.30 of the World Bank, the compensation policies of the project are determined as follows: * All affected people (including non-urban residents, people who stay in temporary or illegal house, business men of shops without business licenses) are entitled to reasonable resettlement or compensation. * compensation standard of all property should be decided as per replacement principle; * compensation should be paid before property and land acquisition; * compensation and relocation standards should be negotiated by the project office, the city demolition office, and the owners or units affected; * The relocation place of the users of the houses to be demolished should be decided according to both the city planning and the nature of the construction project.. Relocation area should be near the residents' original living place, so that the commutation of the staff is ensured not to be affected. * For relocation in foreign district, resettled before demolish and try best to make into no-transition period. Those relocated nearby will get transition period subsidy. * Those families with deformed persons will be relocated on the low floors of the building. Compensation, for demolition and for stopping doing business should be paid for the demolished temporary buildings for operations approved. * Family-operated small-sized private enterprises, shops, restaurants will be relocated on the first floor to go on business.. For the institutions affected, the method of building first and then demolishing is adopted to ensure the normal operation of these institutions.. The relocation place for enterprises and institutions should be negotiated by the owners and users, the relocation department concerned, the planning department and land management department. * The public infrastructures affected should be restored and rehabilitated; * People who are owner of public (unit-owned) house: * Resettlement house area should be decided by stipulated standards * House type will not be changed. For the part that the resettlement floor area is equal to the original one, they will get property certification of house without any charge; For the part that the resettlement floor area is more than the original one, they can get property certification of house by paying construction cost * For the part that the resettlement floor area is less than the original one, they can get compensation fee at replacement cost

* People who are user of public (unit-owned) house: * They can get the use rights of resettlement house without any charge * They can get transitional compensation during actual transitional period * They can get compensation for moving * They will be given three day holidays by their working unit to move, during which they can even have salary and bonus as usual * The disabled people among vulnerable groups will have the priority to be resettled in low-storied houses * They will get compensation as regional price differences if they are resettled from a good region to a worse one People who are both owner and user of private house They can choose one of following schemes: (1) They will receive houses with comparable value, equal area and equivalent condition near their original houses (2) For those who want to improve their house conditions, they can get resettlement houses built by the project by exchanging ownership. If the resettlement house area is equal to the original one, they will own houses without any charge; the extra area beyond their original house will be charged at construction cost, they can borrow loans from bank if they have difficulty in paying the money. (3) They can be compensated in cash at replacement cost (without discount) and they find house themselves. The project unit will provide help if they have difficulty in finding house. - They can get transitional compensation during actual transitional period - They can get compensation for moving - The disabled people among vulnerable groups will have the priority to be resettled in low-storied houses They I will be given three day holidays by their working unit to move, during which they can even have salary and bonus as usual * They will get compensation as regional price differences if they are resettled from a good region to a worse one People who are renters of private house( including illegal house) * They can get transitional compensation during actual transitional period * They can get compensation for moving * They have the priority to rent the house under the same qualification * They will be given three day holidays by their working unit to move, during which they can even have salary and bonus as usual. People who are both owner and user of illegal house They can choose one of following schemes: (1) Without any charge, they will receive houses with comparable value, equal area and equivalent condition near their original houses, and meanwhile they will get legal

acceptance of residency (2) For those who want to improve their house conditions, they can get single room (Type I) of resettlement houses. The resettlement house will be charged at construction cost. For those who need to get expansion area beyond single room, the expansion area will be charged at market price, they can borrow loans from bank if they have difficulty in paying the money. (3) They can be compensated in cash at replacement cost (without discount) and they find house themselves. The project unit will provide help if they have difficulty in finding house. * They can get transitional compensation by actual transitional period * They can get compensation for moving * The disabled people among vulnerable groups will have the priority to be resettled in low-storied houses * They will be given three day holidays by their working unit to move, during which they can even have salary and bonus as usual * They will get compensation as regional price differences if they are resettled from a good region to a worse one People who are both owner and user of licensed shop They can choose one of following schemes: (1) They will receive houses of comparable value, equal area and equivalent condition near their original houses free of charge, and they can apply for business license. (2) First floor of resettlement hou'ses is considered to be shops in resettlement zones. They will receive resettlement house whose area is equal to their original house without any charge, and they can apply for business license. (3) They will be compensated in cash at replacement cost and they find house themselves. The fitting up compensation will be paid to them. The project will provide help if they have difficulty in finding house. * During transitional period they can get closedown loss according to actual loss * They can get compensation for moving * People who are renters of licensed shop * During transitional period they can get closedown loss according to actual loss * They can get compensation for moving * They have the priority to rent the house under the same qualification * Staff and workers (include retired and users themselves) of licensed shop * They can get transitional compensation during actual transitional period People who are both owner and user of non-licensed shop

* Advise them to apply for business license within one month after resettlement announcement. Thus they can be entitled as licensed shop. * For those who donot want to apply for license, they will be compensated in cash in lump sum at replacement cost of the house and fitting up. * During transitionat period they can get closedown loss according to actual loss and moving compensation. * Renter of non-license shop * Advise them to apply for business license within one month after resettlement announcement. Thus they can be entitled as licensed shop. * For those who donot want to apply for license, they will be compensated in cash in lump sum, they also can get closedown loss according to actual loss and moving compensation. * During transitional period they can get closedown loss according to actual loss and moving compensation. - Enterprise * The houses should be compensated at replacement cost * Should get compensation cost for moving * Land acquisition cost will be paid by the project. The enterprise will get land use right free of charge. The equipment that can not be reinstated will be compensated at replacement cost * Staff and workers (include retired) of enterprise * They can get transitional compensation during actual transitional period * Institutions Being resettled before demolition or get currency compensation * Should get compensation cost for moving The equipment that can not be reinstated will be compensated at replacement cost The owner of public infrastructure * Should be rebuilt as its original scale, function etc. The owner of ground attachments * Should be fully rebuilt or compensated at market price. 3.3 Relocation and Compensation Standards (1) Residence Relocation

Relocation houses must be designed according to "Regulations on City Residence Construction Standards of Shenyang City". Residence construction standards are as follows: Type 1: using area is from 30--37 m 2, building area is from 45--52 M 2 ; Type 2: using area is from 40--43 m, building area is from 60--66 m; Type 3: using area is from 50--57 m2 building area is from 70--80 M 2 ; Type 4: using area is from 64--75 m 2, building area is from 90--105 M 2 ; If resettled houses are up than lower-level relocation houses, the house-owners will be relocated with upper-level relocation houses as per the original living area and according to the suite type of standard houses. (2) Compensation Standards of Residence Houses, Shops, Enterprises and Institutions Compensation standards of residence houses, shops, enterprises and institutions are shown in tables 3.1--3.4. Table 3.1 Compensation Standards of Residence Houses Type Standard Remarks Brick-concrete 600 yuan/m' Replacement price of buildings Brick-timber 430 yuan/ m 2 Simple 240 yuan! m 2 Subsidy for moving and 300yuan + transition 55yuan/person.month * persons* actual transitional period Price difference between 5000 yuan/household compensation for moving from a section types I _I good region to a bad region Table 3.2 Compensation Standards of Institutions Type Standard Remarks Relocation house 1200 yuan! For the houses and attachments for price m2 public utilities, the owners should rebuild as per their original nature and siz e. Subsidy for moving 10 yuanl mz I_I Table 3.3 Compensation Standards of Enterprises Type Standard Remarks Compensati brick-concrete 600 yuan! m 2 replacement price of on for buildings houses brick-timber 430 yuanl m simple 240 yuan! mj

Compensati Salary 400yuan/month.pers according to actual on Compensation on for Profit 40% of profit* transitional period closedown Compensation Subsidy for moving equipment equipment which can't restore the original function will be compensated as per replacement price Remarks: According to income tax, each year compensate 20% of total net profit in past 2 years, i.e. 40% of profit times actual transitional period. We classify all enterprises into grades of loss, 10,000, 20,000, 50,000, 100,000 as actual profit which 0-10,000 is considered as 10,000, 10,000-20,000 is considered as 20,000 and so on. Enterprises with profit beyond 100,000 is considered as actual data. Table 3.4 Compensation Standards of Shops Type Standard Remarks Compensatio brick-concrete 600 yuan/ m 2 replacement n for houses b price of buildings brick-timber43yunm simple 240 yuan/ m2 Compensatio Salary 400yuan/month. according to n compensation person actual transitional period for Profit Compensation 40% of profit closedown Remarks: According to income tax, each year compensate 20% of total net profit in past 2 years, i.e. 40% of profit times actual transitional period. We classify all shops into grades of loss, 5,000, 10,000, 20,000, 50,000, 100,000 as actual profit which 0-5,000 is considered as 5,000, 5,000-10,000 is considered as 10,000 and so on. Shops with profit beyond 100,000 is considered as actual data. 4. Resettlement and Rehabilitation Plans for PAPs 4.1 Background There are 3,107 households of 9,329 people to be resettled in this project (including to be resettled for expansion land acquisition and resettlement), with 62,743.3m2 of relocated house area. Among them, enterprises, institutions and shops resettlement involves 183 households of expansion land acquisition and resettlement, 549 PAPs and 5,490.0m 2 relocated house area. See Table 4-1. Table 4-2 is Summary of House Relocation Components. Table 4-3 is Summary of Population Resettlement. Table 4-4 is Summary of House Relocation Accessories.

Table 4-1 Summary of Residents' Houses Relocation Road Name People Household Construction area(m 2 ) Beiyi Rd 3903 1336 26119.6 Lianhe Rd 3457 1163 21400.4 Nanwu Rd 829 252 6070.7 Pangiiang St. 591 173 3662.6 Subtotal 8780 2924 57253.3 Expansion land acquisition and 549 183 5490 resettlement Total 9329 3107 62743.3

Table 4-2 Summary of House Relocation Components Item Beiyi Lianhe Nanwu Pangjian Subtota Expansion Total Rd Rd Rd g Rd I move Resettled household 1336 1163 252 173 2924 183 3107 House area(m 2 ) 26119. 21400. 6070.7 3662.6 57253.3 5490 62743.3 6 4 Communal Household 230 511 227 54 1022 74 1096 House Brick 1583.5 2172.3 4938.8 201.9 8896.5 621 9517.5 concrete I_I Brick timber 4071.7 7702.3 548.7 920.8 13243.5 1598 14841.5 Private Household 340 256 1 99 696 0 696 House Brick 2015.2 1048 0 387 3450.2 0 3450.2 concrete I Brick timber 5182 3715.8 20.5 1739.3 10657.6 0 10657.6 Units' Household 683 308 24 17 1032 109 1141 house Brick 3284.2 1143.1 524.8 58.7 5010.8 915.7 5926.5 concrete I Brick timber 8573 4053.9 37.9 289.9 12954.7 2355.3 15310 Illegal Household 83 88 0 3 174 0 174 house Simply built 1410 1565 0 65 3040 0 3040 Orientation Southern 784 581 139 87 1591 101 1692 Others 552 582 113 85 1333 82 1415 House Water supply 1202 1047 252 173 2674 183 2857 auxiliary facilities Power supply 1336 1163 252 173 2924 183 3107 Gas and 534 628 202 70 1434 110 1544 heating Communicati 134 116 63 43 356 55 411 on Flush toilet 15 59 201 9 284 40 324 Kitchen 120 40 60 10 230 35 265 Balcony 0 0 50 0 50 37 87 _

Table 4-3 Summary of Population Resettlement Item Beiyi Lianhe Nanwu Pangliang Sub- Expansi Total Rd Rd Rd Rd total on move Quantity Proportio Population 3903 3457 829 591 8780 549 9329 Educatio Prescho 203 185 29 55 472 27 499 5.3 n o l Illiterate 139 141 14 15 309 26 335 3.6 Primary 817 638 186 163 1804 85 1889 20.2 school Middle 2644 2408 557 334 5943 369 6312 67.8 school _ College 100 85 43 24 252 42 294 3.1 1& above I I _ Age Below 16 605 640 161 105 1511 98 1609 17.2 17-60 2795 2291 583 414 6083 365 6448 69.2 Above 16 503 526 85 72 1186 86 1272 13.6 Sex Male 1951 1715 419 302 4387 280 4667 50.1 Female 1952 1742 410 289 4393 269 4662 49.9 Professi Cadre 338 490 176 10 1014 100 1114 18.4 oni Worker 1602 1748 384 134 3868 195 4063 65.5 lndividua 90 90 8 8 196 20 216 3.3 Others 439 35 103 180 757 38 795 12.8 Subtotal 2469 2363 671 332 5835 353 6188 100 Vulnerable group 34 24 14 15 87 0 87 Table 4-4 Summary of House Relocation Accessories Road Beiyi Rd Lianhe Nanwu Pangjiang Subtota Expansion Total Rd Rd Rd I move Cable TV 134 116 63 35 348 36 384 Telephon 140 150 60 35 385 34 419 e 4.2 Impact Analysis

(1) Analysis of affected houses Beiyi Road project involves 1,336 households and 3,903 people. Most of the houses are low single-storey. Divided by house structure, brick concrete make up 26.4%, brick timber 68.2% and simply built houses 5.4%. They are mostly low houses built in 30's to 50's. They are also not repaired for years in fairly bad living environment. Per capita house area is 6.69m 2 and average household area is 19.55m 2. Auxiliary rate is fairly low for gas supply, heating, communication, flush toilet and balcony. Some households are in great need of better living conditions for their three generations even live together. These houses are in the list of Shenyang shantytown reform plan. Lianhe Road project involves 1,163 households and 3,457 people. The houses are mainly old and built in 30's-50's. Their internal auxiliary facilities are not too good for kitchen rate is 3.4%, communication 10%, gas supply and heating 54% and flush toilet 5%. Per capita house area is only 6.19m 2 and average household area is 18.4m 2. Divided by house structure, brick concrete make up 20.4%, brick timber 72.3% and simply built houses 7.3%. These houses are in the list of Shenyang shantytown reform plan. Nanwu Road project involves 252 households and 829 people. So this relocation does not affect the residents too much. The relocated houses' internal auxiliary facilities are mediocre for communication rate is 25%, gas supply and heating 80%, flush toilet 80% and kitchen 23%. Per capita house area is only 7.32m 2 and average household area is 24m 2. The residents' living conditions need to be improved. Pangjiang Road project involves 173 households and 591 people. Divided by house structure, brick concrete make up 17.7%, brick timber 80.5% and simply built houses 1.8%. Their internal auxiliary facilities are not too good for gas supply and heating rates is 40%, communication 25% and flush toilet 5%. Per capita house area is only 6.2m and average household area is 21.2m 2. There are 183 households and 549 people of expansion move involved in enterprises and shops resettlement. Per capita house area is 1bM2 and average household area is 30m2. Divided by house structure, brick concrete make up 27.9%, brick timber 72.1 %. Table 4-5 shows the project affects 3,107 households and 9,329 people; among of which 35.2% live in communal houses, 22.4% private, 39.4% enterprises and institution's and 5.5% illegal, altogether 62,743.3m 2 of relocated house area. Divided by house structure, brick concrete make up 30.1%, brick timber 65.0% and simply built houses 4.9%. Per capita house area is 6.72m2 and average household area is 20.19m2. Houses with southern exposure make up 55.2%. Their internal auxiliary facilities rates are: water supply 91.9%, gas supply and heating 49.7%, communication 13.2%, flush toilet 10.4%, kitchen 5.3% and balcony 2.8%.

Table 4-5 is Summary of Affected Houses Item Beiyi Lianhe Nanwu Pangjiang Expansion Total Rd Rd Rd Rd move Population 3903 3457 829 591 549 9329 Household 1336 1163 252 173 183 3107 House Communal 17.2 43.9 90 31.2 40.4 35.2 property (%) Private 25.4 22 0.5 57.2 0 22.4 Enterprise & 51.1 26.4 9.5 9.8 59.6 39.4 institution's Illegal 6.3 7.7 0 1.8 0 5.5 House area(m 2 ) 26009.6 21400.4 6070.7 3662.6 5490 62743. 3 House Brick concrete 26.4 20.4 90 17.7 27.9 30.1 structure (%) Brick timber 68.2 72.3 10 80.5 72 65.0 [Simply built 5.4 7.3 0 1.8 0 4.9 Per capita house area(m 2 ) 6.69 6.19 7.32 6.2 10 6.72 Average household 19.55 18.4 24 21.2 30 20.19 are a(m2) Orientation Southern 58.6 49.9 55.5 50.2 54.4 55.2 exposure(%) Others(%) 41.4 50.1 44.5 49.8 45.6 44.8 House Water supply 90 90 100 100 100 91.9 auxiliary facilities (%) _ Power supply 100 100 100 100 100 100 Gas and 40 54 80 40 60 49.7 heating Communicati 10 10 25 25 30 13.2 on Flush toilet 1.3 5 80 5 21.6 10.4 Kitchen 8.7 3.4 23 5.7 19.1 5.3 Balcony 0 0 19.8 0 20 2.8 (2) Analysis of PAP

See Table 4-3 Summary of Population Resettlement. There are 9,329 PAPs in the project. In respect of education, preschool make up 5.3%, illiterate 3.5%, primary 20.2%, middle school 67.8% and college 2.7%; in respect of age, below 16 years old make up 17.2%, 17-60 years old 69.1% and above 61 years old 13.6%; there are 6,188 employed people affected: 1,114 cadres make up 18%, 4,063 workers 65.7%, 216 individuals 3.5% and others 12.8%. There are also 87 PAPs of vulnerable group. 4.3 Resettlement and Rehabilitation Principles (1) For relocation in foreign district, resettled before demolish and try our best to make into no-transition period. Those relocated nearby will get transition period subsidy. PAPs get moving compensation 300yuan/household and transitional compensation 55yuan/month.person according to the actual transitional time. They will get compensation as regional price differences 5000 yuan/houshold if they are resettled from a good region to a worse one. (2) For people who are owner of public (unit-owned) house: * Resettlement house area should be decided by stipulated standards * House type will not be changed. For the part that the resettlement floor area is equal to the original one, they will get property certification of house without any charge; For the part that the resettlement floor area is more than the original one, they can get property certification of house by construction cost * For the part that the resettlement floor area is less than the original one, they can get compensation fee at replacement cost (3) People who are user of public (unit-owned) house: * They can get the use rights of resettlement house without any charge * They can get transitional compensation during actual transitional period * They can get compensation for moving They will be given three day holidays by their working unit to move, during which they can even have salary and bonus as usual * The disabled people among vulnerable groups will have the priority to be resettled in low-storied houses * They will get compensation as regional price differences if they are resettled from a good region to a worse one (4) People who are both owner and user of private house

They can choose one of following schemes: (1) They will receive houses with comparable value, equal area and equivalent condition near their original houses (2) For those who want to improve their house conditions, they can get resettlement houses built by the project by exchanging ownership. If the resettlement house area is equal to the original one, they will own houses free of charge; the extra area beyond their original house will be charged at construction cost, they can borrow loans from bank if they have difficulty in paying the money. (3) They can be compensated in cash at replacement cost and they find house themselves. The project will provide help if they have difficulty in finding house. * They can get transitional compensation during actual transitional period * They can get compensation for moving * The disabled people among vulnerable groups will have the priority to be resettled in low-storied houses * They will be given three day holidays by their working unit to move, during which they can even have salary and bonus as usual * They will get compensation as regional price differences if they are resettled from a good region to a worse one (5) People who are renters of private house( including illegal house) * They can get transitional compensation during actual transitional period * They can get compensation for moving * They have the priority to rent the house under the same qualification * They will be given three day holidays by their working unit to move, during which they can even have salary and bonus as usual (6) People who are both owner and user of illegal house They can choose one of following schemes: (1) They will receive houses with comparable value, equal area and equivalent condition near their original houses, and meanwhile they will get legal acceptance of residency (2) For those who want to improve their house conditions, they can get single room of resettlement houses. The resettlement house will be charged at construction cost. For those who want to get expansion area beyond single room, the expansion area will be charged at market price, they can borrow loans from bank if they have difficulty in paying the money. (3) They can be compensated in cash at replacement cost and they find house

themselves. The project will provide help if they have difficulty in finding house. * They can get transitional compensation by actual transitional period * They can get compensation for moving * The disabled people among vulnerable groups will have the priority to be resettled in low-storied houses * They will be given three day holidays by their working unit to move, during which they can even have salary and bonus as usual * They will get compensation as regional price differences if they are resettled from a good region to a worse one (7) Standard houses are designed on the basis of Shenyang City House Construction Standards. Details in Table 4-6. Every kind of house has standard net area: single living room at least 6m2 and twin living room 1OiM2, sitting room 4m2, kitchen 3m2, balcony 3m2 and 1.1m wide. Table 4-6 Standard of House Resettlement Unit: m 2 Type Living area Using area Construction area 16-18 30-37 45-52 11 24-28 40-43 60-66 III 30-34 50-57 70-80 IV 36-40 64-75 90-105 4.4 Resettlement and Rehabilitation Plans 4.4.1 Public Participation in Resettlement During the course of making this report, attention is paid to public participation of PAPs to their compensation and resettlement choice. In social economic and surveys, sampling one is made among the residents about their resettlement intention. Most of them wish to have more house area and rooms, improve their house structure and internal auxiliary facilities, have better communication, transportation and convenient starting kindergarten and school for their children. Especially sampling is made for choosing 3 resettlement modes, which are (a) receiving house with comparable value, equal area and equivalent condition (b) Accept resettlement houses built by the project, paying the over-area fee (c) Being compensated in cash, The result is that 97% of them choose (b), 3% chose (c), nobody chose (a). 4.4.2 Resettlement Channel and House Area Houses are to be resettled as standard ones on the basis of the former area (see Table 4-6). Illegal houses are basically resettled as Type I, for those who have difficulty in living with too many

population, they can get standard living area with paying extra house area price by market price. Also see Table 4-7 Resettled Houses Area and Table 4-8 Resettlement Channel. Table 4-7 Resettled Houses Area (including expansion move) Resettled houses type(household) Resettlement house Road I 11 11 IV Subtotal area(m 2 ) Beiyi Rd 1097 282 11 10 1400 77586 Lianhe Rd 1026 195 4 3 1228 66857 Nanwu Rd 193 110 2 1 306 17561 Pangjiang 169 3 0 1 173 9091 irdi I I I I ITotal 1248515901171151 3107 171095 Table 4-8 Resettlement Channel (including expansion move) Zone Resettled Resettled Households source household household(m 2 ) Xiyao Zone 1401 75948 1228 from Lianhe Rd, 173 from Pangjiang Rd Yuhong Beiii Zone 1400 77586 1400 from Beiyi Rd Huaxiang Zone 306 17561 306 from Nanwu Rd Subtotal 3107 171095 The zones are all near PAPs' former locations. After resettlement, the employees' communication and transportation will basically not be affected. In the meantime, PAPs can freely choose the above three zones or other zones in Shenyang. 4.4.3 House Relocation Procedure When the unit who responsible for land acquisition and resettlement get approval from Houses Demolish Administrative Unit for house relocation plan, the resettlers can obtain the floor and orientation of relocation house by chance according to the reached agreements, and the results should get notarization from Notarization Unit. 4.4.4 Introduction of Zones for Resettlement

(1) Yuhong Beili Zone This zone mainly settles relocated households and part of the shops from Beiyi Road. Shenyang municipal government invested with low taxes and built this zone for settling PAPs and those families with low income and less than 4m 2 of living area. This zone is designed like a garden with complete facilities, such as apartments, commercial network, schools, entertainment, and kindergartens as a whole. It covers an area of 100,00Om2 with the back towards Yuhong tree seed-bed natural greenbelt. There is a middle school, a primary school, 2 kindergartens, an entertainment center, a commercial center and many shops. Nearby is No. 204 bus (Yuhong Beili-Shenyang railway station) and No. 606 bus (Yuhong Kaochang-Tiexi Square) to Shenyang downtown. There are Shenyang Central Hospital and Yuhong Hospital of Chinese Medicine in the zone. As a result, it is a convenience to have traffic facilities and seek medical advice. There are 22 buildings of 6-14 storeys. The whole construction area is 220,000m 2. The houses are all complete sets with auxiliary facilities: balcony, flush toilet, and water supply, power supply, cornimunication, kitchen and heating. Part of the ground floors is located with shops. (2) Huaxiang Zone Huaxiang Zone is the biggest residential zone with most complete facilities in Liaoning Province. Now the construction has almost come to the end. The space where PAPs will resettle lies in the south of Huaxiang Zone with the back towards Huaxiang Park. In the zone, there are two primary schools: Huaxiang No. 1 Primary School and No. 2 Primary School. There are also five kindergartens and Taichang Middle School. So the conditions are good for children to start kindergarten and school. The No. 3 Attached Hospital of China Medical University lies in this zone. As a result, the medical conditions here are good. Nearby are No.3 trolley bus (Beiling Park-Hun River Zone), No. 609 bus and No.610 (Huaxiang Zone-Shenyang north railway station), No. 203 bus (Hun River Zone-Shenyang north railway station), which can reach downtown and sub-downtown. It is a convenience to have traffic facilities. The resettlement houses planned to be built in the zone are all apartment buildings with 6-7 storeys and complete auxiliary facilities. Part of the ground floors is located with shops. (3) Xiyao Zone This zone is mainly to settle PAPs and part of the shops from Lianhe Road and Pangjiang Road.

It is newly built as part of Shenyang City general construction program. Nearby is the No. 2 Branch of Shenyang University, Xiyao Primary School, Shenyang No. 147 Middle School and No. 122 Middle School, Railway General Hospital, Liaoning Province Hospital of Chinese Medicine, the Children's Hospital, City No. 11 Hospital. As a result, it is a convenience to seek medical advice and start school. The west of the zone is the biggest park in Shenyang: Beiling Park. The provincial government and long distance bus station are near the zone, with No. 605 bus (Beiling Park-Nanta), No. 18 trolley bus (Lingdong Street-Nanta) which can reach downtown. The house area of the zone is 1 00,00Om 2 constructed with commercial network. Part of the ground floors can be located as shops. 4.5 Calculation of Resettlement and Rehabilitation Compensation Resettlement compensation includes district resettlement fee, regional price difference compensation, and moving compensation and accessories compensation. Resettlement houses fee is 1200 yuan/m2, regional price difference compensation is 5,000yuan/household, moving compensation is calculated at 1,620yuan/household (300 yuan + 55 yuan/month.people * 3 person/household * 8 month), and telephone transferring compensation is 400yuan/tele and cable TV 360yuan/household. See Table 4-9 Resettlement Compensation. Table 4-9 Resettlement Compensation Unit: 10,000 RMB Yuan Road Beiyi Rd Lianhe Nanwu Pangjiang Total Rd Rd Rd Resettlement house 5257.8 4546.3 1194.1 618.2 11616. Regional price difference 0 1228 153 86.5 1467.5 compensation Moving compensation 226.8 198.9 49.6 28 503.3 Accessories compensation 10.6 9.3 7 2.6 29.5 Subtotal 5513.3 5982.5 1403.7 735.3 13634. 4.6 Comparative Analysis of Living Conditions Before and After Resettlement Resettlement zones are near PAPs' former locations. Basically it will not affect the communication and transportation of the employed. Most of the people hope to move to these zones for the better facilities. See Table 4-11 Comparative Analysis of Living Conditions Before and After Resettlement.

From Table 4-11, PAPs' living conditions have improved a lot. Per capita house area increases by 11.62m2 and average household area by 34.87m2. After resettlement, the houses are all brick concrete with water, power, gas, heating supplies, communication, flush toilet, kitchen and balcony. Resettlement zones are prepared to be developed by Shenyang municipal government. They have complete public facilities. PAPs have the same rights with the existing residents and can mix together.

Table 4-11 Comparative Analysis of Living Conditions Before and After Resettlement Item After Before Differenc resettlement resettlement e Per capita house 18.34 6.72 11.62 area(m 2 /person) Average household 55.06 20.19 34.87 area(m 2 /household) House Brick concrete 100 30.1 69.9 structure(%) _ Brick timber 0 65-65 Simply built house 0 4.9-4.9 Orientation Southern(%) 85 55.2 29.8 Others(%) 15 44.8-29.8 House Water supply 100 91.9 8.1 auxiliary facilities(%) Power supply 100 100 0 Gas and heating 100 49.7 50.3 Communication 100 13.2 86.8 Flush toilet 100 10.4 89.6 Kitchen 100 5.3 94.7 Balcony 100 2.8 97.2

5. Resettlement and Rehabilitation Plans for Shops 5.1 Impact analysis (1) Background There are 210 shops of all kinds to be resettled in this project, Among them, 162 are wholly resettled shops, which makes up 77% and 48 are partly resettled ones, which occupies 23%. The house area concerned is 14,872m2. There are 1321 staffs and workers directly affected, in which 1104 on-the-job and 217 retired. Details in Table 5-1. Also see Table 5-2 Summary of Project Affected Shops Resettlement. Table 5-1 Summary of Resettled Shops Road Quantity Staff and worker H use area(m 2 ) On-the-job Retire Subtot Licensed Non- Subtot d al licensed al Beiyi Rd 111 509 209 716 4658 2520 7178 Lianhe Rd 19 163 0 163 1875 302 2177 Nanwu Rd 1 52 0 52 1800 0 1800 Pangjiang St 79 380 8 388 3241 476 3717 Total 210 1104 217 1321 11574 3298 14872 Table 5-2 Summary of Project Affected Shops Resettlement Road Beiyi Lianhe Nanwu Pangjiang Total Rd Rd Rd St Quantity Proportion(% Quantity State-owned 6 6 1 10 23 11.0 Collective 7 10 0 12 29 13.8 Individual 98 3 0 57 158 75.2 Subtotal 111 19 1 79 210 100 Business Dept. stores 36 2 0 5 43 20.5 item 15 1 0 4 10 4.8 Entertainmen 1 5 1 0 4 10 4.8 t _

Catering 30 4 1 9 44 21.0 trade Maintenance 14 1 0 14 29 13.8 Auto fittings 1 1 0 18 20 9.5 Construction 0 5 0 13 18 8.6 material I Others 25 5 0 16 46 21.8 Subtotal 111 19 1 79 210 100 Usage Self usin 56 10 1 36 103 49 Renting 55 9 0 43 107 51 Subtotal 111 10 1 79 210 100 Resettlemen Entirety 110 2 1 49 162 77.1 t extent Part 1 17 0 30 48 22.9 ISubtotal 111 19 1 79 210 100 See Table 5-3 Summary of Project Affected Shops and Staff & Workers Table 5-3 Summary of Project Affected Shops and Staff & Workers Road Beiyi Lianh Nanw Pangjian Total Rd e Rd u Rd g St Quantity Proportion(% Licensed Brick concrete 4542 1379 1800 3241 10962 94.7 house area(m 2 ) Brick timber 116 456 0 0 572 4.9 Simply built house 0 40 0 0 40 0.4 Subtotal 4658 1875 1800 3241 11574 100 Non- Brick concrete 4658 208 0 476 2039 61.8 license d house area(m 2 ) Brick timber 930 94 0 0 1024 31.0 Simply built house 235 0 0 0 235 7.2 Subtotal 2520 302 0 476 3298 100 House area total m 2 7178 2177 1800 3717 14872

Staff & On-the-job 509 163 52 380 1104 83.6 worker (person) Retired 209 0 0 8 217 16.4 _ Subtotal 718 163 52 388 1321 100 (2) Impact Analysis Beiyi Road resettlement altogether affects 111 shops among of which 6 stated-owned make up 5.4%, 7 collective 6.3% and 98 individual 88.3%. Most of the houses were built in 70's and badly fitted up. Of all shops, catering trade make up 27.0%, department stores 32.4%, maintenance 12.6%, entertainment 4.5%, Auto fitting 0.9% and others 22.6%. Divided by house structure, brick concrete make up 82.2%, brick timber 14.6% and simply built houses 3.2%. 718 staff and workers are affected directly, in which 509 on-the-job and 209 retired. Lianhe Road resettlement involves 19 commercial shops in which 6 state-owned make up 31.5%, 10 collective 52.6% and 3 individual 15.9%. In these shops, 2 department stores make up 10.5%, 4 catering trade 21.1%; 5 construction material shops make up 26.3% and others 42.1%; divided by house structure, brick concrete make up 72.8% and brick timber 27.2%. There are 163 directly affected on-the-job staffs and workers. Nanwu Road resettlement only involves Yushan Restaurant with 52 people and 1,800m 2 of brick concrete house area. Pangjiang Road resettlement involves 79 shops, among of which there are 27 shops mainly engaged in construction material, auto fittings, maintenance and catering trade, who renting the houses of Limimg Hotel, Donghuan Department Store, Dadong Catering Service Company, etc. 10 state-owned shops make up 12.7%, 12 collective 15.2% and 57 individual 72.1%. In these 79 shops, 13 construction material shops make up 16.5%, 5 department stores 6.3%, 9 catering 11.4%, 18 auto fittings 22.8%, 14 maintenance 17.7%, 4 entertainment 5.1 % and 16 others 20.2%. The houses are all brick concrete. It directly affects 388 staffs and workers including 380 on-the-job and 8 retired. The project directly affects 210 shops including 23 state-owned which make up 11.0%, 29 collective 13.8% and 158 individual 75.2%. Of these shops, department stores make up 20.5%, catering trade 21.0%, construction material 8.6%, and others like entertainment, maintenance, auto fittings, etc. There are 162 houses entirely dismantled, which make up 77.1% and 48 partially dismantled 22.9%. Divided by house structure, brick concrete make up 61.8%, brick timber 31.0% and simply built houses 7.2%. Most of the shops have licenses. There are only 3,298m2 of shops without

licenses, which make up 22.3% of affected house area. Most houses are just dwelling houses for business use. 5.2 Resettlement and Rehabilitation Principles All state-owned, collective and individual shops concerned will be resettled reasonably (including licensed, non-licensed and temporary shops). The compensation and resettlement principles are as below: (1) Resettlement takes the methods of property exchange, compensation, combination of property exchange and compensation. (2) The exchange area as property is calculated according to the relocated house construction area; the compensation is calculated according to the rebuilding fee of the relocated house construction area. (3) Compensation will be paid if the equipment cannot rehabilitate to use. (4) Compensation will be paid if extra charge is caused by land acquisition for resettlement or exchange of the original lands. (5) Equipment moving fee is calculated on the basis of Shenyang cargo transportation price and equipment installment fee. (6) According to income tax, compensate4o% of profit according to actual transitional period. We classify all shops into grades of loss, 5,000, 10,000, 20,000, 50,000, 100,000 as actual profit which 0-5,000 is considered as 5,000, 5,000-10,000 is considered as 10,000 and so on. Shops with profit beyond 100,000 is considered as actual data. (7) For people who are both owner and user of licensed shop They can choose one of following schemes: (a) They will receive houses of comparable value, equal area and equivalent condition near their original houses free of charge, and they can apply for business license. (b) First floor of resettlement houses is considered to be shops in resettlement zones. They will receive resettlement house whose area is equal to their original house without any charge, and they can apply for business license. (c) They will be compensated in cash at replacement cost and they find house themselves. The fitting up compensation will be paid to them. The project will provide help if they have difficulty in finding house. * During transitional period they can get closedown compensation including salary compensation and profit compensation They can get compensation for moving (8) For renters of licensed shop * During transitional period they can get closedown compensation including salary compensation and profit compensation * They can get compensation for moving * They have the priority to rent the house under the same qualification

(9) For Staff and workers (include retired and users themselves) of licensed shop. During transitional period they can get living compensation according to their average monthly salary. (10) For people who are both owner and user of non-licensed shop * Advise them to apply for business license within one month after resettlement announcement. Thus they can be entitled as licensed shop. * For those who donot want to apply for license, they will be compensated in cash in lump sum at replacement cost of the house and fitting up. * During transitional period they can get closedown and moving compensation. (11) For renter of non-license shop * Advise them to apply for business license within one month after resettlement announcement. Thus they can be entitled as licensed shop. * For those who donot want to apply for license, they will be compensated in cash in lump sum, they also can get closedown and moving compensation. (12) The former shop distribution will be kept as much as possible, shops will be classified according to their different trades and be overall arranged. (13) There are two methods for shortening transitional time and closedown loss: * Direct resettlement. Shops will be directly resettled into completed commercial comprehensive buildings to avoid or shorten transitional time. * Some shops will be dismantled when project is urgent. (14) Individual shops are fully considered for their particularity and will be cared in concrete resettlement. (15) Handicapped-owned shops will be resettled in convenient places. (16) Ground floors are considered to be shops in programming zones for resettlement. (17) Resettled shops have 45 days for moving. 5.3 Resettlement and Rehabilitation Plans During the course of census and property and social-economy survey, opinions are widely solicited for shop resettlement and rehabilitation. Suitable plans should be chosen according to different shops' business characters and demands of commercial environment. There are two environments determining shop management status. One is dependent on the residents and floating population, such as catering trade, general merchandise, etc.: the other is not dependent on the residents and floating population, but scale management and convenient transportation, such as construction material, auto fittings and sale of industrial products, etc. As a result, shops of catering trade will be mainly resettled in residents' zones (suitable places are fully considered in designing the zones for resettlement of this project), so that the shop-owners can have stable income. Shops of general merchandise, construction material, etc. will be resettled in commercial network with concentrated shops. Furthermore, they will properly publicized to ensure these owners to resume their sources of income.

Every shop will have different resettlement plan according to their management characters, analysis of the owners' resettlement aspirations, combined with Shenyang city program. Details are in Annex 1. Comprehensive statistics are in Table 5-4 and Table 5-5. Table 5-4 Shops Resettlement Plan Resettlement Beiyi Lianhe Nanwu Pangjiang St Tota Land place Rd Rd Rd I grade Resettlement in 4 0 1 0 5 neighborhood Resettlement in 5 12 0 5 22 former unit Xiyao Zone 0 6 0 74 80 5 Yuhong Beili 102 0 0 0 102 5 Zone Liutiaohu 0 1 0 0 1 5 Industrial Zone. Total 111 19 1 79 2101 Table 5-5 Shops Resettlement Area U Unit: m 2 Resettlement Beiyi Rd Lianhe Nanwu Pangiiang St Total place Rd Rd Resettlement in 2186 0 1800 0 3986 neighborhood Resettlement in 1259 1081 0 834 3174 former unit Xiyao Zone 0 1056 0 2883 3939 Yuhong Beili 3733 0 0 0 3733 Zone Liutiaohu 0 40 0 0 40 Industrial Zone Total 7178 2177 1800 3717 14872 I 5.4 Calculation of Resettlement and Rehabilitation Compensation On the basis of resettlement compensation policy and standard in chapter 3, and resettlement plans for every shop, resettlement compensation will be calculated according to shops' business scope, area, places and closedown time.

(1)House compensation: The price of brick concrete and brick timber is 1,200yuan/m2, but simply built houses 240yuan /m 2. (2)Structure compensation. Calculated as rebuilding price. (3)Moving compensation. Calculated respectively according to house area and compensation at standard of 10 yuan/i 2. (4) Salary compensation. Calculated according to the number of staffs and workers (including the retired) and standard of 400yuan/month person with 6 months transitional period which will be paid for staff and workers themselves. (5) Profit compensation. 40% of profit with 6 months transitional period. (6) Remaining earth clean fee: Listed in project budget. See Table 5-6 and table 5-7. Table 5.6 Annual Average Profit of Shops Annual Average Profit Beiyi Rd Lianhe Nanwu Rd Pangjiang Total Rd Loss 0 0 1 0 1 5,000 87 4 0 56 147 10,000 12 10 0 18 40 20,000 3 2 0 3 8 50,000 6 2 0 0 8 100,000 2 1 0 0 3 200,000 1 0 0 2 3 Total 111 19 1 79 210 St Table 5-7 Shops Resettlement Compensation Unit: 10,000yuan Compensation item Beiyi Lianhe Nanwu Pangjiang Total Rd Rd Rd St House compensation 729.39 237.7 216 436.08 1619.1 Structure compensation 12 12.4 5 2 31.4 Moving fee 7.18 2.18 1.8 3.72 14.87 Closedown Profit 26.3 7.2 0 18.4 51.9 Los

Compensation Salary 173.32 39.12 12.48 93.12 317.04 Total [947.19 298.58 235.28 553.32 2034.3 I ~~~~~~~~~7 5.5 Comparative Analysis of Business Environment of Resettled Shops Besides shop-owners' competence, the business environment affects shops' benefits greatly. So it should be fully considered when the ships are resettled, in order to make them resume their management as soon as possible. See summary of project-affected areas in Table 5-8, areas for resettlement in Table 5-4 and comparative analysis in Table 5-9. Table 5-8 Project Affected Areas Road Land grade Lianhe Rd 5 Lianhe Rd 2, 3 Nanwu Rd 3 Pangjiang St 4 Table 5-9 Comparative Analysis of Business Environment of Resettled Shops Business Beiyi Rd Lianhe Rd Nanwu Rd Pangjiang St environment Before After Before After Before After Before After resettle- resettle- resettle- resettle- resettle resettle resettle- resettlement ment ment ment - ment - ment ment ment Customer's Fairly good Fairly Common Fairly Good Good Common Fairly quality and good good good quantity Customer's Common Good Fairly Good Good Good Fairly Commo transportatio good good n n Business Common Fairly Fairly Intense Good Good Common Intense competition intense intense Prosperity Fairly Prosperou Fairly Prosperou Good Good Common Excellen prosperous s prosperou s t s Public Fairly good Fairly Fairly Fairly Good Good Fairly Good security good good good good

With the comprehensive analysis of shops business environment, we can get a conclusion that after resettlement shops will lie in populated residential zones with convenient transportation, there will be more customer than before. Thus the shops can resume their management and employees' living standards soon. 6. Resettlement Plans for Affected Enterprises 6.1 Impact Analysis The land acquisition of the project involves 65 enterprises with 42,843m 2 of relocated house area and 5,815 affected staffs and workers. In the affected 65 enterprises, 29 state-owned make up 44.6% and 36 collective 55.4%. There are 30 enterprises entirely relocated, which make up 46.1% and 35 partially relocated 53.9%. In relocated houses, brick concrete make up 61.6%, brick timber 37.0% and simply built houses 1.4%. Among affected staffs and workers, on-the-job make up 78.8% and the retired 21.2%. Most of the enterprises only have to relocate part of their buildings. They are able to rebuild and rehabilitate. Few enterprises will resettle in industrial zones, which have been planned to build. See Table 6-1 Summary of Affected Enterprises and Annex 2 about basic conditions of

each enterprise. Table 6-1 Summary of Affected Enterprises Item Beiyi Lianh Nanw Pangjian Subtotal Rd e u g Rd Rd Rd Quantit Proportion Y Unit State-owned 2 21 3 3 29 44.6 Collective 11 14 4 7 36 55.4 Individual 0 0 0 0 0 0 Subtotal 13 35 7 10 65 100 House space Brick concrete 3205 19333 2917 975 26430 61.6 Brick timber 1741 13813 300 0 15854 37 Simply built 279 280 0 0 559 1.4 house Subtotal 5225 33426 3217 975 42843 100 Staff and worker On-the-job 732 3609 147 92 4580 78.8 Retired 102 1105 19 9 1235 21.2 Subtotal 834 4714 166 101 5815 100 Resettlement Entirety 8 12 6 4 30 46.1 extent Part 5 23 1 6 35 53.9 Subtotal 13 35 7 10 65 100 Using status Private using 12 31 7 9 59 90.7 Renting 1 4 0 1 6 9.3 _Subtotal 13 35 7 10 65 100 6.2 Resettlement and Rehabilitation Principles According to the laws and policies of land acquisition and resettlement in Chapter 3, the resettlement of the enterprises concerned abide by the below principles: * According to income tax, compensate 40% of profit according to actual transitional period. We Classify all enterprises into grades of loss, 10,000, 20,000, 50,000, 100,000 as actual profit which 0-10,000 is considered as 10,000, 10,000-20,000 is considered as 20,000 and so on. Enterprises with profit beyond 100,000 is considered as actual data. * Affected enterprises will get compensation at replacement costs on the basis of their actual relocated space or quantities of their houses and structures. * Affected constructions of the enterprises will be generally rebuilt according to the former scale and functions.

* Enterprises make their own resettlement plan for their affected constructions under the inspection of SRO. Relocation site and plan need to accord to resettlement policies and city plans. * To meet the demands of production and management, affected enterprises rebuild at the original spots as possible as they can. * Resettled before demolish so as to avoid or shorten closedown time and loss. * SRO provide at least two resettlement spots for relocated enterprises to choose. * If affected enterprises are not able to rebuild their buildings at the original spots; relocation spots will be considered and negotiated between enterprises and SUCRPO on the basis of the demands of city program. * During transitional period Staff and workers (including the retired) can get living compensation according to their average monthly salary. * Affected enterprises' lands for resettlement are arranged by SUCRPO on the basis of their original area. All cost caused is paid by the project. * Those affected enterprises that have to close down for resettlement will get compensation by SUCRPO according to the policies. * Lands for resettlement should be arranged as early as possible for resettlement in advance. Affected enterprises have below choices for resettlement: enterprises resettle on the lands gratuitously provided by SUCRPO and freely choose relocation spots after getting resettlement compensation; SUCRPO is responsible for rebuild according to the original area, function and structure. 6.3 Resettlement and Rehabilitation Plans During the course of census and property and social-economy survey, opinions were widely solicited about resettlement in each affected enterprise. Resettlement plans are made according to the project impact to every enterprise and their willing of resettlement. Details are in Annex 2. Summary as below: (1) There are 2 enterprises resettled nearby which make up 3%. (2) There are 44 enterprises resettled in original spots, which make up 67.8%. (3) There are 19 enterprises resettled into planned industrial zones and residential zones, which make up 29.2%. Those people affected by both land acquisition and enterprises resettlement will be resettled in zones nearby. The cost is listed in the project's land acquisition budget. (Details are in Chapter 4.) See resettlement plans in Table 6-2 and 6-3.

Table 6-2 Enterprises Resettlement Plans Resettlement Method Beiyi Rd Lianhe Rd Nanwu Pangjiang Total Rd St. Resettlement nearby 1 0 1 0 2 Resettlement in original unit 6 26 2 10 44 Resettlement in Yuhong 3 0 0 0 3 Beili Zone Resettlement in Huaxiang 0 0 3 0 3 Zone Resettlement in Changjiang 3 0 0 0 3 Industrial Zone Resettlement in Liutiaohu 0 9 1 0 10 Industrial Zone Subtotal 13 35 7 10 65 Table 6-3 House Area for Enterprise Resettlement Unit: m 2 Resettlement Method Beiyi Rd Lianhe Rd Nanwu Pangjiang Total = Rd St. Resettlement nearby 95 0 1452 0 1547 Resettlement in original unit 3191 11581 275 975 16022 Resettlement in Yuhong 806 0 0 0 806 Beili Zone Resettlement in Huaxiang 0 0 1190 0 1190 Zone _ Resettlement in Changjiang 1133 0 0 0 1133 Industrial Zone Resettlement in Liutiaohu 0 21845 300 0 22145 Industrial Zone Subtotal 5225 33426 3217 975 42843 6.4 Calculation of Resettlement and Rehabilitation Compensation According to the compensation standard for land acquisition and resettlement in Chapter 3, compensation is calculated to each enterprise on the basis of their resettlement plans, relocated house area, quantities of relocated structures and equipment, plans for expansion land acquisition and resettlement, time and loss of closedown. Details are listed in Annex 2.

Followings are compensation principles and methods. (1) Houses Calculated by unit according to rebuilding cost and relocated house area. (2) Structures Calculated by unit according to the compensation standard and resettlement quantity in Chapter 3. (3) Equipment moving fee Calculated by unit according to equipment's' quantity, moving distance and cost. (4) Salary compensation. Calculated according to the number of staffs and workers (including the retired) and standard of 400yuan/month person with 6 months transitional period which will be paid for staff and workers themselves. (5) Profit compensation. 40% of profit with 6 months transitional period. (6) Remaining earth clean fee: Listed in project budget. See Table 6-4 and table 6-5. Table 6-4 Annual Average Profit of Enterprises Annual Average Profit Beiyi Rd Lianhe Rd Nanwu Rd Pangjiang Total Loss 5 10 2 6 23 10,000 3 4 1 1 9 20,000 2 5 3 2 12 50,000 0 5 0 1 6 100,000 3 9 0 0 12 200,000 0 1 1 0 2 Other 0 1* 0 0 1 Total 13 35 7 10 65 Remark: Army enterprises which has been closed according to state policy. Table 6-5 Enterprises Resettlement Compensation Unit:1 0,000yuan Compensatio Beiyi Lianhe Nanwu Pangjiang Total n Item Rd Rd Rd St. House 273.9 1760.7 187.9 58.5 2280.9 compensation Structure 30.5 840.4 0 15.5 886.4 compensation St

Equipment 5.2 33.4 3.2 1 42.8 moving fee Land 89.1 1004.4 68.5 0 1162 compensation _ Salary 200.2 1131.4 39.8 24.2 1395.6 compensation Profit 7.4 29.8 5.4 2.0 44.6 Compensation Total 606.3 4800.1 304.7 101.2 5812.3 6.5 Enterprises Resettlement Plans Analysis There are 2 enterprises resettled nearby which make up 3%. There are 44 enterprises resettled in original units, which make up 67.6%. Some of them are corporations' subsidiaries, which will be merged into their corporations or other branch companies according to their business scope and the enterprises' internal programs. The compensation will be used to develop the production and improve the producing conditions. As a result, after merging, those enterprises can optimize the industrial structure, improve the staffs and workers' working conditions, promote economic results and avoid harmful effects caused by resettlement. Some of enterprises are not affected too much because only their office, entrance guards' rooms, warehouses and other attached houses. Those who will settle themselves in the original enterprises will get houses of higher quality. So the staffs and workers' working conditions will also be improved. There are 19 enterprises resettled in the industrial zones, which make up 29.2%. These enterprises' opinions about their resettlement spots are fully considered in their resettlement plans, combined with Shenyang Master Plan for industrial zones. Resettled in relevant industrial zones, enterprises can give full play to the zones' advantages, promote their technology and management, improve their producing conditions combined with their technology reform, so as to promote their economic results and resume or increase the staffs and workers' income after resettlement.

7. Resettlement Plans for Affected Institutions 7.1 Impact Analysis The land acquisition of the project involves 16 institutions, among of which there are 7 educational institutions (school, kindergarten), 3 government organizations, 3 municipal offices (environmental sanitation office), 3 public security and army organs (local police station, army) with 456 affected staffs and workers (381 on-the-job, 75 retired) and 7,296m 2 of relocated house area. The affected institutions are all stated-owned with houses of property right. See Table 7-1 Summary of Project Affected Institutions and Table 7-2 Summary of Project Affected Institutions by Profession. Table 7-1 Summary of Project Affected Institutions Item Lianhe Beiyi Nanwu Rd Pangjiang St Total ~~Rd Rd Quantity State-owned 6 4 5 1 16 Collective 0 0 0 0 0 Subtotal 6 4 5 1 16 Relocated Brick 3610 522 750 85 4967 house concrete area(m 2 ) _ Brick timber 550 729 300 0 1579 Simply built 75 0 0 0 75 house _ Subtotal 4910 1251 1050 85 7296 Staff and On-the-job 177 170 30 4 381 worker(person Retired 14 59 2 0 75 Subtotal 191 229 32 4 456 Using status Private-using 6 4 5 1 16

Renting 0 0 I 0 0 Subtotal 6 4 5 1 6 Table 7-2 Summary of Project Affected Institutions by Profession Profession Quantity Nature Staff and worker Relocation Using status Relocated house extent construction area(m 2 ) State- Collect On- Retired Sub- Entirety Part Private Rent Brick Brick Simpl Subowne -tive the-job total -using concret timber y total d I e house Education 7 7 0 63 11 74 0 7 7 0 2814 829 600 4243 Government 3 3 0 40 0 40 1 2 3 0 950 0 0 950 organization Municipal 3 3 0 176 50 226 3 0 3 0 546 200 150 896 office _ I Public 3 3 0 102 14 116 2 1 3 0 907 550 0 957 security and arm y Total 16 16 0 381 75 456 6 10 16 0 4517 1579 750 6746 Among 16 affected institutions, there are 5 who will have their houses entirely demolished and rebuilt nearby; 11 who will have their houses or structures partially demolished and rebuilt. 4,967m 2 of brick concrete make up 68.1%, 1,579m 2 of brick timber 21.5% and 750m2 simply built 10.3%. 7.2 Resettlement and Rehabilitation Principles Institution resettlement and compensation should abide by following principles:. Resettlement and compensation standards should be rational. Institutions will be rebuilt on the basis of their nature, structure and scale in accordance with city construction program. Those who cannot be rebuilt get compensation according to evaluation price. Those who request to have more house area pay the extra cost for the extra area after ratification.. Resettled institutions decide their resettlement plans on the basis of their resettlement influence and requirements. * Resettle before demolish. Construction lands will be arranged and in advance and houses for resettlement will be rebuilt so that those institutions can directly move into resettlement houses before demolition. * Try to avoid transition for those public service units such as schools, kindergartens, local police stations, environmental sanitation offices, etc.

. Resettle nearby. Resettlement site generally does not exceed the limit of 1.5km away from the original site. 7.3 Resettlement and Rehabilitation Plans During the course of census and property survey and social-economy survey, opinions are widely solicited in affected institutions for their resettlement and compensation. See resettlement plans and house area for the institutions in Table 7-3 and Table 7-4. Resettlement Method Table 7-3 Resettlement Plans for Institutions Beiyi Rd Lianhe Nanwu Rd Pangjiang St Total Rd Resettlement nearby 2 5 0 0 7 Resettlement in original unit 2 1 5 1 9 Subtotal 4 6 5 1 16 Table 7-4 Institutions Resettlement Houses Area Unit: m 2 Resettlement Method Beiyi Lianhe Nanwu Rd Pangjiang Total _ R _ d _ R d St Resettlement nearby 1039 3910 0 0 4949 Resettlement in original 212 1000 1050 85 2347 u n it _ Subtotal 1251 4910 1050 8 7296 Each institution's resettlement plans are made according to the resettled institutions' opinions and analysis of resettlement influence. Details are as below: (1) There are 7 institutions who will have their buildings entirely or partially demolished and resettled in new places: Beishi Environmental Sanitation Office, Beishi Environmental Sanitation Office Xita Branch, No. 4 Patrol Detachment, Beidaokou Police Substation, Tiexi District Qihong Environmental Sanitation Office, Tiexi Guangming School and Trade Institute of Staff & Worker Combination University. (2) There are 6 institutions who will have their buildings partially demolished and rebuilt by themselves: No. 21857 Troops, The garages of Municipal Education Commission, Baogong No. 1 School, Heping District Party School, Shenyang commerce Bureau and No. 2 Primary School of Xiaoheyan Road. (3) There are 3 institutions that will have only part of their structures demolished (enclosures, level grounds, etc) and rebuilt by themselves: Liaoning Provincial Affairs

Management Bureau, Jixian Kindergarten and Shenyang Railway Middle School. Annex 3 is resettlement plans for each affected institution. There are 86 households of 258 people affected by expansion land acquisition and resettlement. They are arrange to resettle nearby in zones for resettlement (Xiyao Zone and Yuhong Beili Zone). The cost is in this project's land acquisition expense budget. 7.4 Calculation of Resettlement and Rehabilitation compensation (1) House compensation. Calculated according to 1,200yuan/m 2 (replacement cost) and relocated house area, but 240yuan/m 2 for simply built houses. (2) Structures compensation. Calculated according to structure compensation standard in Chapter 3 and structure quantity. (3) Expansion land acquisition and resettlement (expansion move) fee. Calculated according to resettlement plans and lands area. (4) Moving compensation. Calculated according to unit price 10yuan/m 2 and relocated house area. (5) Remaining earth clean fee. Listed in project budget. Each institution's resettlement compensation is calculated on the basis of resettlement policy and compensation standard in Chapter 3, relocated house area, structure quantity and resettlement plans. Details are listed in Annex 3. Institutions' resettlement compensation is in Table 7-5. Table 7-5 Institutions' Resettlement Compensation Unit: 10,000yuan Compensation item Beiyi Lianhe Nanwu Pangjiang Total Rd Rd Rd St House compensation 150.1 517.2 126 10.2 803.5 Structures 23.6 30.7 12.2 0 66.54 compensation Moving fee 1.25 4.91 1.05 0.09 7.3 Total 175 552.81 139.3 10.3 877.4 8. Land Acquisition

8.1 Land Acquisition Project land acouisition refers to the state-owned land in the urban of Shenyang City; most part of which are roads now. Details of direct project land acquisition are in Table 8-1. Road Table 8-1 Project Land Acquisition Beiyi road Lianhe road Nanwu road Pangjiang street Subtotal Area (mu) 161.9 552.2 236.3 137.9 878.1 There are 878.1 mu state-owned land acquired directly by the project. According to the principles in P.R.C. City Estate Administration Law, land of infrastructures and public institution can be allocated free of charge after the approval of County People's government and above. Land acquisition for the project is all the state-owned land in the urban of Shenyang City. Acquisition of the stated-owned land carries out on the basis of Shenyang City People's Government Resolution on Compensated Usage of State-owned Land. Table 8-2 shows details of resettlement land program. Table 8-2 Resettlement Land Program Resettlement Zone Resettlement construction area (m 2 ) Capacit Land area y Resident Shop Enterpris lnstitutio Subtotal m 2 mu e Xiyao Zone 75948 3308 0 0 79256 2 39628 59.5 Yuhong Beili 77586 376 806 0 78768 2 39384 59 Zone I Huaxiang Zone 17561 0 1190 0 18751 2 9375.5 14.06 Changjiang 0 0 1133 0 1133 0.75 1511 0 Industrial Zone Liutiaohu 0 40 22145 0 22185 0.75 29580 44.3 Industrial Zone. Resettled 0 3986 1547 4949 10482 2 5241 7.88 nearby Resettled by 0 3174 16022 2347 21516 2 10758 16.12 n rate unit I_I_I_I_I_I_I

Subtotal 171095 1088 42843 7296 232091 13547 200.86 4 8 ***Note: Capacity Rate is a term of Urban Plan, it refers to construction areas of buildings divided by land use area of building. 8.2 Land Sale Payment for Resettlement Prices of resettlement buildings have included land sale payments of residents' houses, shops and zones. The standard of land sale payment is 345 yuan per m2, which is in terms of 23 thousand yuan per mu, for the resettlement land in out-moving enterprises. The cost has been included in enterprise resettlement compensation. The expansion land acquisition and resettlement fee includes the land cost of resettling enterprises, institutions and shops nearby. 9. Resettlement and Rehabilitation Plan for Affected Infrastructure 9.1 Affect Analysis The infrastructures affected by land acquisition and relocation includes water supply pipelines, drainage pipelines, gas pipelines, telecommunication lines, power lines and

trolley's lines, ground attachments includes trees, greenland and bushes. Details are in Table 9-1, 9-2. Table 9-1 Affected Infrastructure Unit: mu Infrastructure Type Affected Qua tity = Beiyi Lianhe Nanwu Pangjiang Total Rd Rd Rd St. Water supply pipeline 612 612 Drainage pipeline 2550 2550 Gas pipeline 61 l 61 Telecommunication 3600 5828 24001182 line l 8 Power line 6200 6520 5100 36002142 0 Trolley's line 5100 4800 9900 Subtotal 4692 2 Table 9-2 Affected Ground Attachments Unit: m 2 Ground Attachment Affected Quantity Types Beiyi Lianhe Nanwu Pangjiang Total Rd Rd Rd St. Trees 263 5522 716 4338 1083 Grassland 62026 1176 958 6416 Bushes 5000 645 5645 9.2 Resettlement and Rehabilitation Principles The resettlement of the affected infrastructure and ground attachments in enterprises and institutions will be carried out according to the principles listed below: * Unit with property right should appraise and decide the quantity and specification of all affected underground pipelines according to the red line drawing of relocation. And the application, which is carried out by the unit itself, should be reported to SRO to verify and put on record thoroughly before relocation.. SRO and unit with property right should verify and determine the quantity, and specification of both the infrastructures and the ground attachments.

* Infrastructures should first be resettled and rebuilt, and then demolished. * The resettlement plan of infrastructure should be put forward by the unit with property right and then reported to SUCRPO to verify. * The budget of resettlement fee of infrastructures should be made by the unit with property right and then reported to SRO to verify. Compensation can only be determined after the negotiation between SRO and the unit. * The u-nit with property right should be in charge of infrastructure resettlement. And the resettlement fee can only be withdrawn in the light of the process of project construction. * The ground attachment fee should be determined after the negotiation between SRO and the unit with property right. And the latter one should deal with and carry out the plan. * The ground attachment compensation should be fixed according to the resettlement principles. 9.3 Resettlement and Rehabilitation Plan The unit with property right should make the plan of each infrastructure. The resettlement main measures include to move downwards (buried in the ground), to translate (to move in and out). The main measures for ground attachments in enterprises and institutions refer to the compensation given by SRO to unit with property right, and also the resettlement on relocation according to programs and developing plans carried out by UPRs. 9.4 Resettlement and Rehabilitation Compensation Infrastructure compensation should be fixed in line with the resettlement principles. Details are in Table 9-3, while amount of ground attachments compensation is 3,729,000 Yuan and considered into engineering budget. Table 9-3 Resettlement Compensation of Affected Infrastructure

Infrastructure Unit Resettlement compensation (10,000 yuan) Type (10,000 yuan /km) Beiyi road Lianhe road Nanwu road Panjiang street Total Translation Burying Translation Burying Translation Bng Translation Burying Water supply 120 74 74 pipeline Drainage 150 383 383 pipeline Gas pipeline 85 152 52 Telecommu- 80 286 466 192 944 nication line Power line 20 124 _ 130 102 72 428 Trolley's line 40 204 192 396 Subtotal MN: 40 41~~~0 722 0 1 2< 277 2 4072689 456 10. Budget for Compensation Costs in the process of land acquisition and resettlement should be included in the general budget of the project. The total cost of land acquisition and resettlement is listed in Table 10-1. To

calculate at the price of Dece. 1997, the total cost is 284.792 million RMB, which will be raised and managed by SUCRPO. 10.1 Fund Flow Procedure In the due period of relocation announced by SHDMO, written agreements should be signed after the negotiation between SUCRPO and those resettlers from effected enterprises and families on the basis of the compensation policy and standard for resettlement. (1) Residents Resettlement Resettlers should sign agreements about the compensation standard, resettlement ways and relocation date with SUCRPO. SUCRPO and SRO are in charge of the resources of resettlement buildings, which are built under preferential measures (such as taxation remission) of government. SUCRPO is responsible for construction cost of resettlement buildings, while SRO settles accounts with resettlers. (2) Enterprises and Institution Relocation Written agreement about compensation standard, resettlement methods and relocation date should be signed after the negotiation between SUCRPO, enterprises and institutions. The negotiation should be arranged by SRO. SUCRPO should fix the lands for resettled enterprises and institutions (from land nearby or outside), and also pay them compensation through SRO. (3) Shops Relocation Written agreement about resettlement methods, compensation standard and relocation date should be sighed between shop owners and SUCRPO. For shops exchange their property rights, SUCRPO is responsible for the arrangement of resettlement buildings, while SRO responsible for the calculation and compensation payment on the basis of the agreement. Shop owners will be given new commercial houses, while shop renters be given closedown loss and relocation compensation. For evaluated shops, SRO will sign compensation agreement with shop owners according to resettlement price and policy. SUCRPO will pay house compensation to shop owners through SRO.

(4) Infrastructures Relocation SUCRPO will negotiate the resettlement plans of infrastructures with units that have property right in order to fix the compensation. According to the resettlement schedule of infrastructures, SUCRPO will pay the compensation to the units. (5) Compensated Usage Cost of State-owned Land SUCRPO will pay the cost of compensated usage of state-owned land directly to SLB. 10.2 Base Cost Base costs include resident compensation, shop compensation, enterprise compensation, institution compensation, and infrastructure and ground attachments compensation. Details are in related sectors from Chapter 4 to Chapter 9. 10.3 Administrative Cost 3% of Base Cost will be charged as administrative cost for the units that are responsible for the project land acquisition and resettlement, such as purchasing equipment, transportation, holding meetings, communication, business trips, handling official business, etc. 10.4 Contingencies Cost 10% of Base Cost will be used as contingencies, which includes contingencies for physical and price. The former one is prepared to pay budget estimate caused by any change in project and unpredictable changes of good's quantity. The latter one is used under the consideration of inflation and price change during the construction procedure. The budget of the cost mentioned above is made on the basis of the price of Dece. 1997. 10.5 Survey and Design Cost 2% of Base Cost will be spent as survey and design cost. 10.6 Monitor and Evaluation Cost 0.6% of Base Cost will be used as monitor and evaluation cost.

10.7 General Cost The general cost for land acquisition, relocation, resettlement and rehabilitation is listed in Table 10-1. Table 10-2 give details of annual investment plans made on the basis of the project schedule (Details in Chapter 11). Table 10-1 General Cost for Land Acquisition and Resettlement Unit: 10,000 yuan Item Cost Proportio n (%) Beiyi Rd Lianhe Nanwu Panjiang St Total Rd Rd Compensation 5513.3 5982.5 1403.7 735.3 13634.8 47.9 for resettlers Compensation 947.19 298.58 235.28 553.32 2034.37 7.1 for shops Compensation 598.8 4770.3 299.5 99.2 5812.3 20.4 for enterprises Compensation 175 552.8 139.3 10.3 877.4 3.1 for institutions Compensation 410 722 689 456 2277.0 8.0 for infrastructures and ground accessories Base cost 7618 12319 2766.8 1835.8 24636.1 86.5 Survey and Base cost * 2% 492.7 1.7 design cost Monitor and Base cost * 0.6% 147.8 0.5 evaluation cost Administrative Base cost * 3% 739.1 2.6 cost Contingencies Base cost * 10% 2463.5 8.7 Total 28479.2 100

Table 10-2 Annual Investment Plan Year Road Name Resettlement Quantity Investment Perce (million nt yuan) (%) Shop Enterprises Hous s Institutions e- hold 1998- Pangjiang St, Lianhe Rd 98 32 1400 96.74 34.0 1999 1999 Beiyi Rd, Gonghe 111 29 1300 96.08 33.7 interchange 2000 Nanwu Rd 1 15 270 81.16 28.5 2001 Wrap-up 5 137 10.81 3.8 Total 210 81 3107 284.79 100

11. Activities Schedules of Resettlement 11.1 Connection of the Implement of Resettlement and the Project The sub-projectc of land acquisition and resettlement refer to the infrastructure project. Details of project schedule are listed in Table 11-1. The schedule of land acquisition and resettlement is determined to connect with the constructional plan of the project. The principles of connecting the project construction with the land acquisition, and resettlement are as the following: * To finish the work of land acquisition and relocation one month before the start of the project. The beginning time can be determined according to the realities of the land acquisition, relocation, resettlement and rehabilitation.. To reserve enough time for the land acquisition, relocation, resettlement and rehabilitation before the start of the project construction. Connection plan between the project construction and the land acquisition is in Table 11-1. Table 11-1 Connection Schedule of Project Construction and Land acquisition Project Construction date Relocation date Resettlement date Start End Start End Start End Lianhe Rd 1999.4 1999.11 1998.10 1999.2 1998.10 1999.12 Beiyi Rd 2000.3 2000.11 1999.3 1999.12 1999.3 2000.12 Nanwu Rd 2001.3 2001.11 2000.3 2000.12 2000.3 2001.12 Pangjiang Rd 1999.4 1999.11 1998.10 1999.2 1998.10 1999.12 11.2 Implement Schedule of Resettlement The implementation of land acquisition and resettlement will start after the appraisal of the World Bank. The plan should be decided according to the principles listed below: * To determine the final relocation expansion of land acquisition according to every project design drawing, and to finish the determination before the census and property survey for the land acquisition. * To calculate the result of census and property survey for the land acquisition according to the red line drawings of land acquisition and relocation, and to carry out by both the mobilization mechanisms in charge of land acquisition and relocation, and those owners of title before they sign compensation agreements.. To have a mobilization meeting, which should be presided over by the

mobilization mechanism in charge of land acquisition. The mechanism should promulgate the policies and ways of land acquisition, relocation, compensation, and resettlement methods. Resettlers and relocated units should attend the mobilization meeting. The meeting will be held before they sign the agreements for compensation and resettlement. And formal announcements of land acquisition and relocation will be released after the mobilization meeting. * To carry out the compensation, resettlement and rehabilitation agreements signed by the mobilization mechanism and the resettlers after the census and property survey and the release of the formal announcement of land acquisition and relocation. * To dispense transition funds to residents during their transitional period. And it should be dealt out before they start to move. * To try to arrange resettlement field for enterprises in advance, and to avoid or reduce the losses of closing down caused by relocation. For those have to close down, the compensation should be dealt out before relocation.. To try to arrange resettlement field for commercial network of relocated shops and the market construction. And also, try to avoid or shorten the transition period, or move into resettlement buildings without transition. For those have to transit, the compensation should be dealt out before relocation.. To construct new public utilities (such as schools, kindergartens, saving's bank and hospitals) and municipal infrastructure in advance and then demolish the old ones. * To settle accounts and deal out compensation after the assignment, and before the relocation. On the basis of the principles listed above and details in Table 11-1, we determine each sub-project's schedule of land acquisition and resettlement. Details are in Table 11-2. 11.3 General Plan for land Acquisition and Resettlement The general plan of the project is fixed in light of the schedule of the preparation and complement for the land acquisition and resettlement and rehabilitation of the project construction. Details are in Table 11-3.

Table 11-2 Resettlement Implement Schedule Implements of Resettlement & Lianhe Rd Beiyi Rd Nanwu Rd Pangjiang Rehabilitation Rd Final decision scope of land 97.10-98.2 97.10-97.10-98.2 97.10-98.2 acquisition and resettlement 98.2 Calculation of the census and property 98.10 99.3-5 2000.3-5 98.10 survey for the land acquisition Mobilization meeting, promulgation of 98.10 99.3 2000.3 98.10 policies Release of the announcement of land 98.10 99.3 2000.3 98.10 acquisition and relocation Negotiation of the agreement of 98.10-11 99.3-6 2000.4-6 98.10-11 compensation and resettlement Leveling of resettlement field for 98.10 98.12 99.6-7 98.10 residents, enterprises an institutions Constriction of resettlement buildings 98.12-98.12-98.12-98.12-99.10 for residents 99.10 99.12 2000.12 Constriction of resettlement buildings 98.10-99.6 98.12-98.12-98.10-99.6 for enterprises and institutions 99.12 2000.12 Settling accounts and disbursing the 98.11-99.1 99.4-12 2000.5-12 98.11-99.1 compensation Disbursing transition fee for residents 98.11-2000.1-6 2001.1-6 98.11-99.12 99.12 Dispensing the compensation of 98.11-2000.1-6 2001.1-6 98.11-99.12 closedown for enterprises, institutions 99.12 and shops Re-building municipal infrastructure 98.12-1 99.4-12 2000.5-12 98.12-99.1 Residents moving into resettlement 98.12-2000.1-6 2001.1-6 98.12-99.12 buildings 99.12 Enterprises and institutions moving 98.12-2000.1-6 2001.1-6 98.12-99.12 into resettlement buildings 99.12 I I Demolition of old buildings and utilities 99.1-3 2000.1-3 2001.1-3 99.1-3 12. Institutional Organization 12.1 Institutions Responsible for Resettlement Planning, Management,

Implementation and Monitoring The main departments, bureaus or agencies responsible for planning, implementation, management and monitoring of resettlement activities are: Liaoning Urban Construction and Renewal Project Office (LUCRPO) Shenyang Urban Transport Project Leading Group (SPLG) Shenyang Urban Construction and Renewal Project Office (SUCRPO) The Resettlement Office of Shenyang Municipal Engineering Construction and Administration Bureau (SRO) Shenyang House Demolition Management Office(SHDMO) Shenyang Land Planning and Administration Bureau(SLB) Shenyang Municipal Engineer Design and Research Institute (SYMEDRI) Neighborhood Committee Concerned The Sociology Research Institute of Liaoning Social Science Academy (SRI) The leader of SPLG is a vice-mayor who is in charge of municipal engineer construction. The vice leaders are held by the chief leaders in Shenyang Construction and Administration Commission, Shenyang Planning commission, Finance Bureau. The members include the chief leaders in Shenyang Construction and Administration Commission, Shenyang Planning commission, Shenyang Finance Bureau, SLB, Shenyang Municipal Engineering Construction and Administration Bureau, Shenyang Communication Bureau, Shenyang Public Security Bureau, Shenyang Environmental Protection Bureau. SPLG is responsible for leading, organizing, coordinating, supervising and examining the project land acquisition, demolition and rehabilitation. SUCRPO is responsible for RAP compilation and implementation. SRO is responsible for the specific procedure of the implementation of house demolition and rehabilitation. SHDMO and SLB are respectively responsible for house demolition, land use, the resettlement arbitration and supervision. 12.2 Responsibilities 12.2.1 SUCRPO (Institution for Management) * Entrusts the survey design institute to define the scope of resettlement impact; * Conducts social and economic survey; * Applies for Planning License for Land Use and Permission License for Construction Land Use to SLB. * Develops the policy of the RAP; * Organizes and Coordinate the compilation of the RAP; * Coordinates the implementation of the RAP and the construction schedule; * Allocates funds and supervises its' use; * Arrange constructing relocation house * Coordinates, and monitors resettlement implementation and progress

* Organizes and implements inner monitoring, decides outside independent monitoring institution and coordinates outside supervision; * Reviews monitoring reports; * Prepares progress reports and submits them to LUCRPO; * Solves problems and deals with conflicts in implementation. 12.2.2 SRO * Conduct social and economic survey; * Registers physical index of land acquisition and house demolition and conducts basic survey; * Organizes public participation; * Negotiate with the project affected units (PAUs) and compiles RAP together; * Conducts RAP; * Goes through formalities for land and house acquisition; * Together with SUCRPO signs contract of resettlement compensation demolition with PAPs and PAUs; * Examines the project instructions and blueprint of relocation house; * In charge of resettlers' rehabilitation; * Conducts information management of land acquisition, house demolition and rehabilitation; * Trains staff; * Reports to SUCRPO about the land acquisition, house demolition and rehabilitation; * Coordinates efforts and solves the conflicts and problems encounter in the implementation of resettlement. 12.2.3 SHDMO (Institution for Management and Monitoring) * Executes the country's policies and regulations about house demolition; - Examines PAP's application for demolishing the house affected, documents, and the materials concerned and grants permission license of house demolition and relocation after check; - Examines the program of demolition and rehabilitation and the blueprint of relocation house; - Issues The Public Notice on House Demolition; * Examines and grants credentials for house demolition and relocation from the institutions for implementation of demolition and relocation; = Coordinates efforts, solves and arbitrates the conflicts and appeals encountered during the implementation of house demolition. * Deals with the illegal affairs in the implementation of house demolition and conduct economic punishment as well as other punishment. 12.2.4 SLB (Institution for Management and Monitoring) * Executes the country's policy and regulation on the administration for construction land use of the project; * Examines the program of land acquisition, house demolition and rehabilitation, and the compensation standard; * Goes through formalities for land use of the project; * Takes part in the social and economic survey in the area affected; * Grants the Planning License for Land Use and Permission License for Construction Land Use to relevant authorities; * Guides, coordinates, and monitors project land acquisition and house demolition and rehabilitation implementation; * Coordinates efforts and solves the conflicts and problems encountered during the implementation of land allotment.

12.2.5 Neighborhood Committee * Participate in social-economic surveys and the compilation of resettlement program; * Take part in compiling RAP; * Organize public consultation, propagandize land and house acquisition policy; * Reporto upper organizations about the opinions and suggestion of PAPs; * Provide support to the necessitous resettlement households that are affected by land requisition and house relocation. 12.2.6 SYMEDRI (Institution for Survey and Design) * Minimizes the project effect through optimum design; * Decides the scope of land acquisition and house demolition; * Associates to compile RAP; * Provides technical consultation on data investigation and process to SUCRPO and SRO. 12.2.7 Institution for Independent Monitoring and Survey * Provides technical consultation; e As an institution for independent monitoring and evaluation, monitors RAP and its implementation and submits monitoring and evaluation report for resettlement to SUCRPO and the World Bank. Its responsibility will be stated in Chapter 15. 12.2.8 SRI (Institution for Survey and Monitoring) * Designs social and economic questionnaire; e Is in charge of training of social and economic survey; * Conduct social and economic survey; e Provide social and economic survey materials. 12.3 Staffing Table 12-1 shows details of the staffing of the resettlement institution involved in the Project. The resettlement institutions involved in the project are well staffed. The average number of staff is 106; the total number of staff is 224. Telecommunications among the institutions are very good, which is very importanto implement resettlement action plan. The institutions for demolition administration and implementation have better transportation vehicles and communication instruments. Institutions for survey, design, monitoring and evaluation own more advanced computers and their workers good at operating them. Institutions for resettlement, monitoring and evaluation have rich experience of land acquisition, house demolition and rehabilitation. Table 12.1 Staffing of the Resettlement Institutions Involved in the Project Resettlement Average Total Qualifications of Staff Date Staffed & Institutions Number Number of Mobilized of Staff Staff A B C D E SPLG 7 14 14 governmental officials, From 1996.

graduates SUCRPO 3 15 12 engineer & technicians, economic From 1995,1. managerial staff,. qraduates SRO 8 12 10 engineer & From 1996.6. technicians, workers for social and economic surveyb fraduates SHDMO 3 6 6 public functionary, From 1995.11. graduates SLB 3 _ 6 public functionary, From 1995.11. graduates Neighborhood 70 150 cadre 1995.11. Committee SYMEDRI 3 5 5 engineer & technicians, From 1995.1. graduates IMO 6 12 SRI(lnstitution for 3 4 2 research fellows, 5 From 1996.11. Survey) l l graduates Total 9224 106 _r_

Enterprise and Institution Infrastructur 12.4 e Owner Organizational ILUCRPO FSPLGI Chart SYMEDRI, and SRI (Srvy R SHDMO, SLB and Design) L...i(Supervision) Household Shop7 12.5 Measures for Strengthening Institutional Capacity * One regular working staff of SUCRPO has attended "the World Bank Loaned Project Resettlement and Rehabilitation Workshop", held by EDI of the World Bank and NRCR in May 1995, and has been familiar with the resettlement policies of the World Bank. Three persons in SUCRPO and SRO took part in training class of Land Acquisition and Resettlement Management In formation System (ARMS) in October 1997 held by NRCR and LUCRPO. They grasped the basic skills in the computer for resettlement management information system about land acquisition and resettlement. * SOCRPO and SRO plan to arrange 3-6 persons to take part in resettlement seminar on the World Bank Loaned urban construction projects sponsored by EDI and NRCR in 1998. * SUCRPO and SRO will keep on organizing land -acquisition, demolition and resettlement training which include the World Bank guideline 0D4. 30, land acquisition and house demolition regulations, the case analysis, simulation training, cost control, sources distribution and so on, so as to improve the staff's ability on business and policy treatment. SYEFunds and equipment are fully guaranteed. SUCRPO has 2 computers, and SRO has 1 computer for resettlement work. * ARMS will be established. Communication is reinforced. Leading groups solves the serious problems. * Reports and internal monitoring are improved. Problems are settled in time. * Independent monitoring and evaluation are reinforced. The IMO points out existing problems and offers suggests and resolutions. 12.6 Working Procedure of Land Acquisition, House Demolition and

Resettlement Implementation (1) Confirming the Scope of Land acquisition and House Demolition According to rea line figures and plain figures of land acquisition and resettlement, Institutions for demolition and implementation organize workers to local police stations, grain departments, house administration departments, sub-district offices to investigate and register the number of households, the total population and the house property condition within red line scope, and at the same time to frozen the residence registration and house property right. (2) Physical Investigation of Land Acquisition and House Demolition SRO and Shenyang Service Station of Land Acquisition organize workers to landacquired villages, house-demolished families and units to investigate and register the land, house, structures attached to house, installation and equipment in details. As to the investigation of the infrastructure on the ground and underground, they first confirm the nature and the ownership of the infrastructure within red line scope, and then introduce the conditions of land acquisition and resettlement involved in the project to each infrastructure owner and management unit, and provide plain figures to the units concerned. The units concerned report the materials on infrastructure for SRO within 15 days after receiving the plain figures. (3) Developing the Planning and Budget of Land Acquisition, House Demolition and Resettlement According to the investigation of land acquisition and house demolition, SUCRPO and SRO follow the policy and regulation on land acquisition and house demolition, organize workers to compile and make the planning and the budget of land acquisition, house demolition and resettlement, and report those to the higher authority to examine and approve. (4) Examining and Approving Resettlement Action Planning, Granting the Permission License of House Demolition and Rehabilitation by SHDMO (5) SHDMO make land acquisition and house-demolishing announcement. (6) Applying for Felling Trees As regard to the trees, which need to be cut off, SRO provides the number and apply to Greenbelt Office and makes compensation according to the number. Greenbelt Office is in charge of felling trees after approval. (7) Signing the Contracts on Land Acquisition, House Demolition and Rehabilitation Following the policy and regulation of Resentment and the resettlement planning, the person in charge of demolition, landacquired villages, house-demolished persons (units) follow the regulations concerned made by the state, consult each other fairly and reasonably, negotiate and resolve the compensation standard and some problems caused by land acquisition, house demolition and resettlement. Sign the contracts on land acquisition, house demolition and resettlement immediately once the agreement is

achieved. The contracts are signed and sealed by house-demolished people and SRO. (8) The Specific Procedure of House Demolition and Rehabilitation <1>The person in charge of demolition report the documents and material concerned to the higher organ, apply the permission license of house demolition and rehabilitation, and grantee the Permission License of House Demolition and Rehabilitation after it examined by SHDMO <2> SHDMO fixes the date of making land acquisition house demolition announcement, announces the names of the person and the institutions entrusted for demolition and relocation, the names of house-demolished people, the scope of house demolition, as well as the deadline of removing and so on. <3>Registering and investigation house and the structures attached to house within house-demolished area are carried out. Dealing with signing contracts on housedemolished compensation. <4> The person in charge of demolition signs contract with the house-demolished persons on house demolition including compensation means, compensation amount, rehabilitation place and its space, the deadline of demolition and rehabilitation, the ways and the deadline of transmission, the responsibility of breaking the contract and other necessary affairs. <5>House-demolished person selecting relocation house (place and order), which is notarized by notary office. <6>Removing to the relocation house. <7>Demolishing the original house. <8>Going through the formalities of house property right. (9) Infrastructure demolition, Reconstruction and Production Recovery As to the infrastructures within red line which need to be demolished, infrastructure owners or SRO organize the construction team to carry out reconstruction and production recovery. The funds for demolition and rehabilitation is offer by SUCRPO. (10) Demolition, Reconstruction and Production Recovery for Enterprises institutions As to the enterprises and institution within red line which need to be demolished, enterprises and institutions owners or SRO organize the construction team to carry out demolition. SRO compensates the owners and makes them finish reconstruction and production recovery by themselves. As to PAUs, SRO helps them get land for reconstruction and production recovery, after following the demands of city planning, considering the opinions from PAUs, and finally negotiating with PAUs. (11) Going Though Land Use Certificate

After the materials concerned are well prepared, SLB issues the documents of approving the land use, grants the land use certificate and the temporary land use certificate. (12) Summarizing and Keeping in the Archives When the wok of land acquisition and house demolition is finished, Accounts are settled. SUCRPO writes working summary. After it is examined and approved, it is kept in the archives. 13. Participation and Consultation

In order to develop relevant policies and RAP, to carry out the implementation efficiently, to guarantee the legal interests of PAPs, to decrease the grievances and conflicts, and to fulfill the objective of well relocating the PAPs, special attention will be paid to participation and consultation of the PAPs in the project. During the resettlement policy developing, planning compiling and implementation phase of the project, the opinions of PAPs are collected widely. During the project preparing phase--feasibility study phase, the SUCRPO has consulted Anshan City Government, People's Congress, Political Consultant Committee, people's groups, and representatives of PAPs from the affected institutions, enterprises and shops about the road trend and viaduct site, land acquisition, house demolition resettlement. All the suggestions and opinions on the resettlement have been considered in the RAP compiling. From June to July 1996, SUCRPO organized workers to conduct census and property survey and social and economic survey within the scope of land acquisition and house demolition. The representatives of PAPs, affected enterprises and shops took part in the survey, and made suggestions to resettlement compensation and rehabilitation. All the opinions and suggestions have been considered in the RAP compiling. March to April in 1997, SUCRPO, SRO, the chief leaders in neighborhood committee and PAPs representatives took part in the physical and social-economic investigations on land acquisition and the effect of demolition. SRO solicited opinions from sub-district office, neighborhood committee, PAPs representatives on road trend, viaduct site, house demolition, resettlement and compensation, and discussed the problems from all sides. From May to June 1997, SUCRPO, SRO and SRI carried out a social and economic survey and a psychological investigation. They collected the opinions from project affected households (PAHs) and shops (300) and the affected enterprises and institutions. The psychological questionnaire showed that 95% of the sampling households knew the project would be constructed more or less; 92% approved the project or did not care about; 65% were clear on the compensation policies for land acquisition of the project more or less; 100% thought the project benefited to the country; 90% thought the project benefited to the collective and 95% thought the project benefited to PAPs. The psychological questionnaire also showed that 95% of the sampling households would agree the land acquisition and house relocation, and 89% knew they were able to grieve if their rights were damaged. Table 13.1 is shown the details. In October 1997, SUCRPO sponsored a meeting with the infrastructure owners the project affected. The following departments took part in the meeting. They are Municipal Administration Section, Greenbelt Office, Gas Company, Electric Power Bureau, Thermodynamic Company, Drainage Company, Water Company, Post and Telecommunication Bureau and other infrastructure owners. SUCRPO introduced the project condition and the scope involved, solicited opinions from housedemolished units on road trend, viaduct site, and house demolition, and negotiated compensation rate with them. After the meeting, infrastructure owners organized workers to look through archives or to survey on the spot, and provided their infrastructure sorts and quantity within the demolition scope. All suggestions offered have been adopted in the planning. From October 1997, SUCRPO carried out a supplementary social-economic survey. They solicited opinions from PAP representatives on housing condition, demolition and rehabilitation. All the opinions and suggestions have been adopted in the RAP compilation. Later, the following way will be taken continuously to encourage public participation and negotiation.

(1) PAP Representatives Taking Part in the House Demolition and Relocation PAPs choose their representatives in portion. By cooperating with sub-district office and neighborhood committee, the representatives solicit opinions and collect rationalization proposals from PAPs. In addition to these, they regularly exchange views with PAPs. Table 13.1 Psychology Questionnaire No Questions Answers Sampling Results (%) Household 1 2 3 A B C D E F G 1 Do you know the project 1.Yes 2.Know a little 300 81 14 5 will be constructed? 3.No 2 Do you approve to 1.Yes 2.No 300 89 3 8 construct the protect? 3.1ndifference 3 Whowillbenefitfromthe A. State 1.Yes 2.No 300 100 0 Project? B. Collective 1.Yes 2.No 90 10 C. Individual 1.Yes 2.No 95 5 Do you know the 1.Yes 2. Know a little 300 25 40 35 4 compensation policy of 3.No urban land acquisition and house relocation? 5 Do you agree the land 1.Yes 2.No 153 95 5 acquisition, house relocation? 6 Do you know that if your 1.Yes 2.No 300 89 11 rights are encroached on you can state? Neighborhood committee and representatives of PAPs take part in the process of survey for house and its attached structure, in confirming compensation standard, in negotiating the contracts on resettlement compensation negotiation and rehabilitation, in the construction and distribution of relocation house and so on, so as to reflect the PAPs' benefits and opinions, and to ensure the judgment and transparency of the project resettlement. (2) Selecting Compensation and House Reconstruction Way by PAPs and PAUs PAPs are offered to select a way from the way of exchanging property right, the way of compensating by evaluating and the way of combining the way of exchanging property right and the way of compensating by evaluating. PAUs may choose self-reconstruction by compensation. Workers in charge of demolition construct the relocation house in accordance with the nature, structure, and scale of the original house. (3) Selecting Relocation House by Drawing Lots Publicly The distribution of PAPs relocation houses is carried out publicly. The institutions for demolition organize workers, PAPs, SHDMO, the police station in the house-demolished area, PAPs' representatives to take part in the distribution of PAPs' relocation houses. The meeting of selecting relocation houses is held. The number positions, story of relocation houses are announced. PAPs select house by number after drawing lots by themselves. Shenyang notary office notarizes it.

(4) Information and Discussion Meeting Representatives from PAPs, house-demolished shops, house-demolished enterprises and institutions, neighborhood committee, women (women should be more than 30% of all representatives) are organized to take part in discussion meetings. The meeting will inform them about the process and further obtain their opinions and suggestions. (5) Public Gathering Meetings The meetings are held before the resettlement, mainly to explain relevant policies, laws and regulations, compensation rates, etc. Thus, PAPs can get early preparation for the resettlement. (6) Propaganda through media (7) Making a Land Acquisition and House Demolition Announcement 14. Grievance and Appeals The project pays special attention to the PAPs participation throughout the planning and implementation process. To ensure that the PAPs have avenues for redressing their grievances and appeals, transparent and efficient procedures of redress of grievances have been established for the project. The purpose is to avoid raising serious grievance problems. The procedures are the following. Stage 1:

If any PAP or PAU is aggrieved by any aspect of the resettlement and rehabilitation program, he / she/it can lodge an oral or written grievance with PAPs' representatives and neighborhood committee. He / she/it also can lodge an oral or written grievance with SRO (institutions for implementation) directly. In case an oral compliant is made, it will be written on paper by SRO and processed. SRO will resolve the issue within two weeks. Stage 2: If the aggrieved person (unit) is not satisfied with the decision on stage 1, he/ she /it can bring the complaint to the attention of the SUCRPO (institution for monitoring and arbitration) after the receipt of the decision on Stage 1. SUCRPO will make a decision on the complaint within two weeks. Stage 3: If the aggrieved person (unit) is not satisfied with the decision on stage 2, he/ she /it can appeal to SHDMO (institution for monitoring and arbitration) for administrative arbitration after he receives the decision on Stage 2. The institution for administrative arbitration will reach a decision on the complaint within 3 weeks. Stage 4: If the PAP or PAU is still dissatisfied with the decision, he /she /it can appeal to the Peoples Court in accordance with the "Civil Procedure Act" after receiving the decision of the institution for administrative arbitration. PAP or PAU can make an appeal for any aspect of the resettlement and rehabilitation program, including compensation rates being offered. Procedures for redress of grievances and the appeal process in detail are publicized among the PAPs and PAUs during participation meetings and other ways. Thus the PAPs PAUs are clear about their rights of grievance and appeals. 15. Monitoring To ensure implementing resettlement and rehabilitation planning regularly, and to realize the target of arranging resettlement well, the project needs monitoring the implementation of land acquisition, house demolition and rehabilitation activities according to Business Guideline 4.30 under the World Bank. There are two kinds of monitoring internal monitoring and independent monitoring. Internal Monitoring is carried out by LUCRPO, SPLG, SUCRPO and SRO to ensure that all the responsible units follow the schedule and comply with the principles of the RAP. The purpose of this internal monitoring is to maintain the satisfactory function of the resettlement organizations during the implementation process.

Independent Monitoring Organization is responsible for independent monitoring and evaluation on the activities of land acquisition, house demolition and resettlement. IMO or experts will undertakethe independent monitoring of the resettlement component to observe <1> the function of the resettlement network; <2>the implementation process of land acquisition, house demolition, rehabilitation, and compensation; <3> the recovery of PAPs, house-demolished shops, enterprises and institutions; and <4> survey and analysis for the resettlers' living condition. The purpose of independent monitoring is to provide an evaluation of resettlement by an organization independent to the institutions for the project demolition, and to review the overall implementation from a broader, long-term point of view. Independent monitoring institution follows the resettlement activities to evaluate whether the goals of resettlement are achieved through observing <1 > the application of the laws of P.R.C. concerned on resettlement; <2> compliance with the principles of the World Bank's Operational Directive O.D. 4.30 on Involuntary Resettlement; and <3>an improvement in the standards of living of the PAPs or at least maintenance of the living standard at pre-project levels. The IMO provides suggestions to the SUCRPO and the institution for demolition implementation, so as the problems appeared in the implementation can be resolved. 15.1 Internal Monitoring and Supervision SUCRPO has developed an internal monitoring framework to supervise the resettlement activities. SUCRPO establishes relevant database on land acquisition, house demolition and resettlement, uses the database assists to compile the resettlement planning, and to carry out internal monitoring on the whole implementation process. 15.1.1 Implementation Procedure During the implementation, based on samples provided by monitoring organizations, SRO collects and records implementation information on citizens, shops, enterprises and institutions. At the same time, it delivers the record of the current activity timely to LUCRPO and SUCRPO, so as to keep on a consistent monitoring on implementation. SUCRPO conducts periodic supervision to the project resettlement, and reporto upper level agency. In the overall framework there is continuous flow of information on a regular format from the SRO to LUCRPO. LUCRPO, SUCRPO, SRO as the important components carry out the periodic supervision and verification. 15.1.2 Indicators to be Monitored (1) Payment of compensation to PAPs and PAUs (2) Reconstruction and removal (3) Rehabilitation of the vulnerable groups (4) Rehabilitation and business recovery for shops (5) Rehabilitation and production recovery for institutions and enterprises (6) Reconstruction of infrastructure (7) Arranging schedule of the above (8) Conformity with the policy and regulation of RAP (9) Participation and negotiation of PAPs during implementation (10) Staffing, training, work schedule and effectiveness of the institutions 15.1.3 Staffing The staffing of resettlement organizations is presented in Chapter 12. Staffs in the organizations who are responsible for monitoring and data processing are as follows:

No Table 15.1 Staffing of Resettlement Organizations Involved in Monitoring Resettlement Organizations Regular Staff Total Staff during Peak Period A B C 1 SPLG 1 3 2 SUCRPO 2 4 3 SRO 6 8 5 Independent Monitoring Organization 6 12 15.1.4 Purpose and Responsibility Overall responsibilities of the resettlement organizations are listed in Chapter 12. Monitoring responsibilities of the SUCRPO are listed as following. * Setting up the house demolition department, and training staff to investigate the project affected area. * Organizing social and economic survey and giving technical consultation. * Preparing RAP. - Being in charge of land acquisition and resettlement implementation. * Collecting grievances and appeals from PAPs and PAUs and solving the problems concerned. 15.2 Independent Monitoring The IMO monitors on the base of census data compiled by the survey design institute and survey materials utilized by the resettlement organization. 15.2.1 The Independent Monitoring Organization (IMO) IMO or experts of the project will be invited for independent monitoring and evaluation work. They should have rich experience in resettlement strategy, planning, design, implementation, monitoring, evaluation, management, etc. Annex 1 is for the outline of independent monitoring and evaluation. 15.2.2 Responsibilities IMO or experts will monitors and evaluates the implementation of RAP, gives advice and suggestions, provides technical consultation for supplementary social-economical survey and RAP compilation. Besides, it will carry out following activities. Baseline Survey IMO or experts carry out baseline survey to the PAPs, house-demolished shops, and enterprises and institutions and collects basic materials of PAPs' and PAUs production and living level (living level, production and business level and income level). The baseline survey is repeated twice on an annual basis to measure the changes of the standards of living. Sampling investigation and interview are used to collect specific materials. Finally, analyzes those collected materials and gives an evaluation. The sampling scale is 10% of the house-demolished households, 10% of the house-demolished shops; 10% of the general resettlement households, and 15% of the PAUs. B. Periodic Monitoring and Evaluation

In the implementation of RAP, IMO or experts monitors project resettlement once every year. By observance, sampling investigation and interview, IMO or experts monitors the following activities. * Compensation payment and its sum * Construction of the rehabilitated houses * PAPs rehabilitation and their living recovery * House-demolished shops' rehabilitation and their business recovery * House-demolished enterprises' and institutions' rehabilitation and their production recovery * Infrastructure reconstruction * Resettlers' moving * Training * Vulnerable group's rehabilitation * Original house demolition * Resettlers' production and living recovery * The schedule of all above * Resettlers' social psychology * Organizatio net for resettlement and rehabilitation C. Public Consultation IMO participates in public consultation meetings. Through participation in these meetings IMO evaluates the effectiveness of the PAPs' participation. D. Grievance Issues IMO regularly visits sites and inquires about the grievance issues by interviewing the SUCRPO and implementation units where the grievances are received and collected, and also by interviewing the PAPs, IMO provides improving measures and suggestions for these issues so as to make the process more effective. 15.2.3 Procedure (1) Prepares outline for monitoring and evaluation (2) Develops Resettlement Monitoring and Evaluation Information System (3) Prepares survey outline and questionnaire, recording card of sampling resident, shops, enterprises. (4) Designs sampling survey plan (5) Carries out baseline survey (6) Establishes Monitoring and Evaluation Information System (7) Conducts monitoring survey Conducts local social-economic survey Monitors resettlement implementation organizations Monitors sampling residents Monitors sampling shops Monitors sampling enterprises and institutions (8) Arranges monitoring data, establish database (9) Conducts comparing analysis (10) Develops a monitoring and evaluation report once a year

16. Reporting 16.1 Internal Reporting 16.1.1 Responsibility and Frequency of Report From the beginning of resettlement implementation, SRO submits progress report at least once in a month to SUCRPO, and SUCRPO submits progress report at least once in a month to LUCRPO. Summary reports are required after the completion of implementation phases. Continuos reports are required on special condition. The statistic reports (implementation, progress, and funds) are required every 3 months. 16.1.2 Formats

The statistic reports should follow the requirements of the World Bank. The reports are submitted upward regularly by the office for resettlement. The report format is divided into two parts The first one is the literal part which is the illustration of land acquisition, house demolition, resettlement, the compensation funds installment, and so on. The second one is the forms which summary the statistical data of the past 3 months, and show the comparison between the planning quantity and the actual quantity of land acquisition, house demotion, the compensation funds, etc. The progress reports consist of illustration and forms. 16.2 SOCRPO's Report Responsibility 16.2.1 Frequency SPO submits land acquisition and resettlement progress report to LUCRPO and SPLG once a quarter, and LUCRPO submits land acquisition and resettlement progress report to the World Bank at the end of January every year. 16.2.2 Contents * progress of land acquisition, house demolition and resettlement * compensation rates, and compensation funds payment * house relocation - rehabilitation and recovery for house-demolished person, shop, enterprise and institution and the reconstruction and production recovery for infrastructures * staff training * rehabilitation of vulnerable groups 16.2.3 Formats In accordance with the requirement of the World Bank, the report formats are divided into two parts. The first is illustration that summarizes the land acquisition, house demolition and compensation funds, and reflects the difficulties and problems encountered in the implementation procedure and resolution methods achieved. The second is forms that summarize the statistic data, and reflect the comparison between the planning quantity and the actual quantity of land acquisition, house demotion, the compensation funds, etc.

16.3 IMO's Report Responsibility 16.3.1 Frequency According to the World Bank's demands, the IMO should carry out monitoring and evaluation once a half year, and submit monitoring and evaluation reports to the World Bank through SUCRPO. From the beginning of resettlement implementation, monitoring and evaluation survey is carried out in every November, and corresponding reports should be submitted in January 31 of the next year. The implementation of land acquisition, house demolition and resettlement will be finished in October 2001. There will be 6 times of independent monitoring and evaluation on resettlement--march 1999 on resettlement base-line survey and first monitoring, in November 1999 and once a year in 2000,2001,2002 and 2003 on monitoring and evaluation report. 16.3.2 Contents * resettlement base-line survey progress of land acquisition and resettlement * availability and utilization of compensation funds * house demolition and relocation for PAPs * demolition and reconstruction and recovery for house-demolished shops * demolition and reconstruction and recovery for house-demolished enterprises and institutions * demolition, reconstruction and production recovery for infrastructure * living standard of PAPs * evaluation on the operation and efficiency of resettlement agencies * rehabilitation of vulnerable groups * psychology survey of PAPs * existing problems and suggestions 16.3.3 Formats The reports of independent monitoring consist of 3 formats--illustration, forms, and pictures. 17. Resettlement Entitlement Matrix Type of impact PAPs Resettlement compensation principle Standard

Public house owner * Resettlement house area should be ' Resettlement house (unit house) decided by stipulated standards construction area * House type will not be changed. For the standard: Type I, 45- part that the resettlement floor area is 52m2, type 11 60- equal to the original one, they will get 66m2, type 1I1, 70- property certification of house without 80m 2, type IV, 90-105 charge; For the part that the resettlement m2 floor area is more than the original one, * Construction Cost: they can get property certification of 520yuan/m 2 house by paying construction cost + House replacement * For the part that the resettlement floor cost: brick concrete area is less than the original one, they 600yuan/m 2, brick can get compensation fee at timber 430 yuan/mr 2, replacement cost simply built 240 yuan/m 2 user * They can get use rights of resettlement house without any charge * For relocation in foreign district, resettled before demolish and try our best to make compensation cost: into no-transitionperiod. Those relocated 55yuan/month.person nearby can get transitional compensation * Compensation cost for during actual transitional period moving: * They can get compensation for moving 300yuan/family * They will be given three day holidays by their working unit to move, during which they can even have salary and bonus * The disabled people among vulnerable groups will have the priority to be resettled in low-storied houses * They will get compensation as regional price differences if they are resettled from a good region to a worse one * Poor can get resettlement house not less than the lowest standard without any charge. * After get guarantee, the unemployed person can defer payment or pay by installments

Type of PAPs Resettlement compensation principle Standard impact Private house Both * They will be given the following choices: * Construction Cost: owner (1) They comparable will receive houses value, equal area with and * 520yuan/m House replacement 2 and equivalent condition near their original cost: brick concrete houses user (2) For those who want to improve their 600yuan/m 2, brick house conditions, they can get resettlement timber 430 yuan/m 2, houses built by the project by exchanging simply built 240 ownership. If the resettlement house area is yuan/m 2 equal to the original one, they will own houses free of charge; while the extra area beyond their original house will be charged at construction cost, they can loan from bank if they have difficulty in paying the money. * (3) They will be compensated in cash at replacement cost and they find house themselves. If they have difficulty, project unit can help them. * 55yuan/month.person * They can get transitional compensation during actual transitional period * They can get compensation for moving * 300yuan/family * The disabled people among vulnerable groups will have the priority to be resettled in low-storied houses * For relocation in foreign district, resettled before demolish and try our best to make into no-transition period. Those relocated nearby can get transitional compensation during actual transitional period

Type of PAPs Resettlement compensation principle Standard impact Private house renter. For relocation in foreign district, * 55yuan/month.person resettled before demolish and try our best to make into no-transition period. + 300yuan/family Those relocated nearby can get transitional compensation during actual transitional period * They can get compensation for moving * They have the priority to rent the house =_ under the same qualification

Illegal house Both * They will be given the following choices: * Construction Cost: owner (1) Without any charge, they will 520yuan/mr 2 receive houses with equivalent and condition near their original houses, user and they will get legal acceptance of residency (2) For those who want to improve their house conditions, they can get resettlement houses of type 1. The resettlement house will be charged at construction cost. For those who want to get expansion area beyond Type 1, the expansion area will be charged at market price, they can loan from bank if they have difficulty in paying the * 55yuan/month.person money. (3) They will be compensated in cash at * 300yuan/family replacement cost and they find house themselves. If they have difficulty, project unit can help them. * They can get transitional compensation during actual transitional period * They can get compensation for moving * For relocation in foreign district, resettled before demolish and try our best to make into no-transitionperiod. Those relocated nearby can get transitional compensation during actual transitional period

renter * They can get transitional * 55yuan/month.person compensation during actual transitional period * 300yuan/family * They can get compensation for moving + They have the priority to rent the house under the same qualification + For relocation in foreign district, resettled before demolish and try our best to make into no-transitionperiod. Those relocated nearby can get transitional compensation during transitional period actual

Type of PAPs Resettlement compensation principle Standard impact Licensed Both * They will be given the following choices: House replacement cost: shop owner (1) They will receive houses with brick concrete 600 yuan/m 2, and comparable value, equal area and brick timber 430yuan/M 2, user equivalent condition near their original simply built 240 yuan/m 2 houses free of charge, and they can apply for business license. (2) First floor of resettlement houses is considered to be shops in resettlement zones. They will receive resettlement house with equal area to their original house free of charge, and they can apply foe business license. (3) They will be compensated in cash + 10yuan/m 2 at replacement cost and find house * Profit compensation: 40% themselves. The fitting up Of profit x actual compensation will be paid to them. transitional period They find business houses themselves, if they have difficulty, project unit can help them. + They can get closedown compensation including salary compensation (for staff) and profit compensation during transitional period. + They can get compensation for moving * The disabled people among vulnerable groups will have the priority to be resettled in low-storied houses renter * They can get profit compensation * Profit compensation: 40% during transitional period. Of profit x actual + They can get compensation for transitional period moving 10Oyuan/m * They have the priority to rent the house under the same qualification

Staff (inclu de boss and retired * They can get salary compensation * 400yuan/person.month during actual transitional period Non-licensed 0 Advise them to apply for business. Cost of applying for shop wn license within one month after license: about 100 resettlement announcement. They yuan/license er can be entitled as licensed shop when * Time of applying for they apply the license. license: about 1 week * For those who do not want to apply * House replacement cost: for license, they will be compensated brick concrete in cash in lump sum at replacement 600yuan/m 2, brick timber cost of the house, moving subsidy 430yuan/m 2, simply built and fitting up. 240 yuan/m 2 * They can get closedown * 600yuan/person in lump compensation including salary sum compensation (for staff) and profit * 1 Oyuan/m 2 for moving compensation during transitional subsidy period. * Profit compensation: 40% Of profit xactual transitional period Renter * They will be entitled as licensed shop after they apply the license. + For those who do not want to apply * 600yuan/person in lump for license, they will be compensated sum in cash in lump sum * For those who do not want to apply for license, they will get compensation * 10yuan/m 2 cost for moving

Type of PAPs Resettlement compensation Standard impact principle Enterprise unit * The houses should be * Get use right of resettled land, compensated at replacement while all expense is paid by cost project unit ( 230,000 * They can get profit compensation yuan/mu) during transitional period. * House replacement cost: brick + Should get compensation cost for concrete 600yuan/m 2, brick moving timber 430yuan/m 2, simply * Land acquisition cost will be paid built 240yuan/m 2 by the project. The enterprise will * Compensation cost for get land use right free of charge. moving: 1 Oyuan/m 2 * The equipment that can not be * Profit compensation: 40% Of reinstated will be compensated at profit x actual transitional replacement cost period Staff. They can get transitional salary * 400yuan/person.month compensation during actual (includ transitional period e retired) Institution unit * Resettle before demolition. * Land use right price is the * Should get compensation cost for same as that of enterprise moving *rstld hue pie + The equipment that can not be * resettled house price: reinstated will be compensated at 1200yuan/m 2 replacement cost * House replacement cost: brick concrete 600yuan/m 2, brick timber 430yuan/m 2, simply built 240yuan/m 2 * 1lOyuan/m 2 Infrastructure Owner * Should be rebuilt as its original scale, function etc. + See also chapter 9 Ground Owner * Should be rebuilt as its original * See also chapter 9 attachment scale, function etc. 18. Others

18.1 Traffic Management 18.1.1 Connection Missing Link of Tianguang Street Tianguang Street is a planned road, which starts from the north of Wuai Street to Shifu Road. In this project, the section from Nanguan Road to Shenzhou road will be connected, the length for this section is 1,140m, the redline is 30m wide, the width for the carriage way is 22m. The project has been already listed in Shenyang Road Plan which belong to urban comprehensive development, so the land requisition for the road space completed in 1995. SRO and Resettlement Office of Shenhe District were in charge of all resettlement work, while entire expense was raised by Municipal Cost and real estate company. All works was completed in April, 1998. The whole project affected 41 households and 143 persons directly, 1185.8 m 2 residential houses were demolished. Totally 11 shops, institutions and enterprises were affected, with 9627 m 2 house being demolished. The population of these shops, enterprises and institutions affected by the project is 1,548 persons, of which nobody lost their job for the project. Of all affected households houses, 11 were public houses, the others were private houses, there were no illegal house. They were resettled at Huaming Zone and Rihua Zone of Danan, Shenhe District, where was 3 km from Tianguang Street. The resettled area was 2337 m2 and the cost was 3.5 million yuan. Only one shop were affected which was licensed shop and managed by Fengyutan Street Agency. It has been resettled in Guangyi Developed Zone. Totally there were 10 institutions and enterprises, of which 5 were resettled nearby, 5 were resettled in Guangyi Developed Zone. The cost was 33,760,000 yuan. Resettlement of the project was based on policies of "P.R.C. Urban House Demolition Administration Regulations", "Liaoning Province Urban House Demolition Administration Detailed Enforcement Regulations", "Shenyang City Urban House Demolition Administration Provisions ", which had little difference with World Bank resettlement policy. 18.1.2 Connection Missing Link of Zhenzhou Road According to Shenyang Master Plan, Shenzhou road is a planned road which starts from Xishuncheng Road to Daxi Road. The total length of the road is 1,000m and the redline is 40m wide. The project has been included in Shenyang Road Plan already which belong to urban comprehensive development, so the land acquisition for the road space

completed in 1995. SRO and Resettlement Office of Shenhe District were in charge of all resettlement work, while entire expense was raised by Municipal Cost and real estate company. All works were completed in April, 1998. The whole project affected 379 households and 1288 persons directly, 10,874 m 2 residential houses were demolished. Othermore 1 shop, 1 institution and 14 enterprises were affected, with 16445 m2 house being demolished. The population of these shops, enterprises and institutions affected by the project is 1,280 persons, of which nobody lost their job for the project. Of all affected households houses, 103 were public houses, 77 were unit-own houses, the other 199 were private houses, there were no illegal house. They were resettled at Tianguang Zone nearby. The resettled area was 20660 m2 and the cost was 32.02 million yuan. Only one shop were affected which was licensed shop and was resettled nearby. The affected institution was also resettled nearby. There were 14 affected enterprises which were resettled in Tianhougong Developed Zone. The cost was 40.11 million yuan. Resettlement of the project was based on policies of "P.R.C. Urban House Demolition Administration Regulations", "Liaoning Province Urban House Demolition Administration Detailed Enforcement Regulations", "Shenyang City Urban House Demolition Administration Provisions ", which had little difference with World Bank resettlement policy. 18.1.3 The Improvement for Sanjing Street Shenyang propose to use the World Bank Loan to widen and connect Shiyiwei Road to Jiuwei road along Sanjing Street. The total length for the road is 326m, the redline is 30m wide. The project has been already included in Shenyang Road Plan which belong to urban comprehensive development, so the land acquisition for the road space completed in 1995. SRO and Resettlement Office of Heping District were in charge of all resettlement work, while entire expense were raised by Municipal Cost and real estate company. All works were completed in April, 1998. The whole project affected 61 households and 212 persons directly, 1554 m2 residential houses were demolished. Totally 41 shops were affected, with 2245 m2 being demolished. The population of these shops affected by the project was 415 persons, of which nobody lost their job for the project. There was no institution and enterprise being affected.

Of all affected households houses, 24 were public houses, 17 were unit-own houses, 1 were army-own house, 19 were private houses, there were no illegal house. The armyown house was compensated in cash, the other 60 houses were resettled in Huaxiang Zone, Tiexi District. The resettled area was 3875 m 2 and the cost was 5.8 million yuan. All 41 shops affected were licensed shop and have been resettled in Huaxiang Zone. The cost was 4.6 million yuan. Resettlement of the project was based on policies of "P.R.C. Urban House Demolition Administration Regulations", "Liaoning Province Urban House Demolition Administration Detailed Enforcement Regulations", "Shenyang City Urban House Demolition Administration Provisions ", which had little difference with World Bank resettlement policy. 18.1.4 Others There is no resettlement for other intersection channelizaition and the road widening. 18.1.5 Affected Ground Attachments Affected Ground Attachments Ground Attachment Affected Quantity Types Tianguang Shenzhou Sangjing St. Total St. Rd Trees 456 414 131 1001 Grassland(m 2 ) 3388 3388 Bushes(m 2 ) 612 612 Cost(Thou. Yuan) 76 281 22 379 Remark: Amount of ground attachments compensation is 3,729,000 Yuan and considered into engineering budget. 18.2 Public Transport 18.2.1.1 Natural Situation 18.2.1 Bus Repair Facilities The bus repair facilities locates in Xiaohan Village, Yuhong District, which is about 50

meters from the 2RR. It occupies 60,0Om2.The original space belongs to the Liangma Group, while in 1996 Shenyang Public Transit Co. has procured for land of Bus Repair Facilities and parking place. What Shenyang Public Transit Co. procured is " abandoned land", all resettlement works have already been finished at end of 1996 by Liangma Group. By end of March, 1997, Shenyang Public Transit Co. has gotten certificate of land use and has finished exploration of land. The land can be used right now. 18.2.1.1 Resettlement work by Liangma Group Before the land was requisited, there were 85 vegetable sheds with 170 labors, of which half were male, other half were female. There were also a primary school with building area 4000 m2, and a collective mini-scale paper-making plant. Each household was compensated for 12,000 yuan. All male labors were arranged into ox breeding farm or building engineering company of Liangma Group, whose salary are more than 500 yuan/person, while all female labors were arranged into shoe making company and fish farm of the Group, whose salary are more than 400 yuan/person. Thus each household will get 10,000 yuan each year. Compared with salary before resettlement, they get more than 4000 yuan each year. With 6 million yuan, Liangma Group Procured 30,000 m2 land and rebuilt a primary school whose building area is 5100 M 2. Now the school has been put into use. The paper-making plant was resettled in new-developed industry zone. Liangma Group procured 3500 m2 for the plant. 18.2.2 Dadongmen Bus Hub Terminal Dadongmen bus Hub terminal locates in the central part of the east commercial area and the residential area. It also locates in the junction intersected by Dadong Road and the Dongshuncheng Street. There are 7 transit routes cross this area the passenger volume is above 100,000 per day. Shenyang propose to construct a 2 stories parking lot, the at ground level is for the bus terminal and under ground level for the public vehicle. The bus terminal occupies 4,000 m2, which belong to the kind of reconstruction on the original place by Bus Transit Co. so there are no land acquisition and resettlement will be required. During the construction period the 30 trolley buses will be placed in No.204 Depot of Dongta Co.. The workers will be reallocated by the company.

18.2.3 Bus Hub Terminal at Shenyang Rail Station The bus hub terminal locates in the central part of Shenyang Railway Station. Shenyang propose to construct 4 stories parking lot among them, 2 for public vehicle and 2 for the bus terminal. The bus hub terminal occupies 12,000 m2, which belong to the kind of reconstruction on the original place by Bus Transit Co.. so no land acquisition and resettlement will be required. During the construction period some of the vehicles will be placed in Naner Road and the Renmin Stadium Long Distance Depot,others will put in the rented Shenyang South Railway Station Square. The workers will be reallocated by the company. 18.3 Road Maintenance For some of the road the right of way have been reserved, other roads will be reconstructed within the original cross section, so no land acquisition and resettlement will be required. Annex Annex 1 The Outline of the Resettlement Monitoring and Evaluation 1. An Introduction to the Project Land acquisition and house demolition of this project influence 3405 households, 90 enterprises, 210 shops, 18 institutions and related infrastructures, ground attachment. The total number of PAPs is 21977. Resettlement planning of this project is complied by Shenyang resettlement office of this project, implemented by Shenyang Service Station for land acquisition. NRCR is in charge of independent monitoring and evaluation report. 2. Objectives of Resettlement Monitoring and Evaluation According to the requirement of the World Bank on Involuntary Resettlement OD4.30 and the World Bank technical document No.80 Involuntary Resettlement and Rehabilitation in

Development Projects --Guidelines of Policy for the World Bank Loaned Projects", we undertake the monitoring and evaluation on the resettlement of Shenyang Road Transportation Project. For this, we will make an evaluation on the progress of relocation and rehabilitation by monitoring the progress of resettlement, funds, management and the changes on production of PAUs and the living of PAPs after the relocation. We submit regular monitoring and evaluation report (once a year) to the World Bank and SPO and the administration departments concerned. At the same time, we also offer information and suggestions to the departments concerned for decision. From these monitoring and evaluation reports, the World Bank and the administration departments can get full understanding of land acquisition and management. These reports can also help to identify problems along the way of resettlementhat can impede the achievement of project objectives, and offer suggestions to make it better. 3. The Contents of Resettlement Monitoring and Evaluation (1) Implementation Progress of Land Acquisition and House Demolition The implementation progress of land acquisition and house demolition includes<1> land acquisition; <2> the new sites for house relocation; <3>houses demolition; <4> houses reconstruction; <5>resettlers relocation; <6> PAUs relocation; <7>the reconstruction of infrastructure. (2) Resettlement Funds Availability and Utilization Resettlement funds availability and utilization include <1 > Funds allocation and availability; <2> Funds utilization (planning and actual). (3) Houses Demolition and Reconstruction Houses demolition and reconstruction include: <1> housing condition and living environment before relocation; <2>objectives of houses demolition and reconstruction; <3> housing condition and living environment after relocation; <4>comparative analysis and evaluation on housing condition and living environment before and after relocation. (4) Resettlers' Employment and Living Standard Resettlers' employment and living Standard include: <1> resettlers' employment and living standard before relocation; <2> resettlers' employment and living standard after relocation; <3>comparative analysis and evaluation on resettlers' employment and living standard before and after relocation. (5) Demolition, Reconstruction and Production Recovery for House- Demolished Shops, Enterprises and Institutions Demolition reconstruction and production recovery for house-demolished shops, enterprises and institutions include <1> production, business and income before relocation; <2> production, business and income after relocation; <3> comparative analysis and evaluation on production, business and income before and after relocation. (6) Operation and Efficiency of Resettlement Implementation Organization 4. Technical Route Independent monitoring technical route is shown as the following (Annex Chart 1.1). 5. Organization and Division of Resettlement Monitoring and Evaluation