Download - Resettlement Planning DocumentProject Number: 33469-01 February 2009 Realigned Section of PRC: Ningxia Road Development Project Prepared by Ningxia Highway Construction Administration

Resettlement Planning Document

The Supplementary resettlement is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

Supplementary Resettlement Plan Document Stage: Final Project Number: 33469-01 February 2009

Realigned Section of PRC: Ningxia Road Development Project

Prepared by Ningxia Highway Construction Administration Bureau

BREVIATIONS AND ACRONYMS Note: While all acronyms and abbreviations are defined in the text, this list is presented to highlight the most important ones

ADB Asian Development Bank AV Administrative Village CNY PRC Currency, the Yuan HH Household CRO County Resettlement Office mu Chinese land area unit of measure: 1 mu = 0.0667 ha

PAH Project Affected Household NHSDI Ningxia Highway Survey Design Institute NHCAB Ningxia Highway Construction Administration Bureau NCD Ningxia Communications Department PAP Project Affected Person PRO Project Resettlement Office RMB Renminbi—another word for the PRC Currency, the Yuan RP Resettlement Plan SES Socioeconomic Survey Twp. Township ¥ Abbreviation for Yuan, PRC’s currency

Supplementary RP of Ningxia Expressway

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TABLE OF CONTENTS I OBJECTIVES OF RESETTLEMENT PLAN AND DEFINITION OF RESETTLEMENT TERMINOLOGY II EXECUTIVE SUMMARY III THE RESETTLEMENT PLAN

A. Status of the Resettlement Plan 4 B. Scope of Land Acquisition and Resettlement 4 C. Policy Framework and Entitlements 4 D. Resettlement Strategy 5 E. Institutional Arrangements 5 F. Vulnerable Groups 5 G. Consultation and Grievance Redress 5 H. Monitoring and Reporting 6 I. Resettlement Cost and Implementation Schedule 6

1. GENERAL 10 1.1. Project Background 10 1.2. Project description 10 1.3. Project Affected Area 10 1.4. Measures to Reduce the Project Impact 11

1.4.1. Minimize the Project Impact Area 11 1.4.2. Reducing the Impact of the Project Construction 11 1.4.3. Establish a feasible Resettlement Plan and implementation programs 12

1.5. Project Cost Estimate and Implementation Schedule 12 1.6. Preparation for Resettlement Planning 15

1.6.1. Impact inventory survey 15 1.6.2. Socioeconomic Survey 15 1.6.3. Resettlement Planning 16

1.7. Policy Basis and Objective of Resettlement Plan 16 1.7.1. Policy Basis 16 1.7.2. Planning Principles Adopted by the Project 16

2. THE SOCIOECONOMIC PROFILE OF THE AFFECTED AREA 18 2.1. Nature and Geography of Project Affected Areas 18 2.2. Socioeconomic Profiles of Project Affected Areas 18

2.2.1. Basic Profile of Affected County 19 2.2.2. Profile of affected townships 19 2.2.3. Profile of affected villages 20 2.2.4. Basic Profile of Affected Households 21

3. PROJECT IMPACT 25 3.1. Determination of Project Impact Scope 25

3.1.1. Permanent Land Acquisition 25 3.1.2. Temporary Land Occupation for Construction 25

3.2. Impact Inventory Survey 25 3.3. Affected Inventory (Project Impacts) 26

3.3.1. Land Acquisition 26 3.3.2. Demolished Houses 26 3.3.3. Affected population 27 3.3.4. Scattered trees to be removed 27 3.3.5. Affected Special Facilities 27 3.3.6. Affected Minority People 28

4. POLICY FRAMEWORK 29 4.1. Policy Basis 29 4.2. Relevant Provisions of the Laws and Regulations 29

4.2.1. Land Administration Law of the People's Republic of China" 29 4.2.2. The Regulations of Land Administration in Ningxia Hui Autonomous Region 31 4.2.3. ADB Policies 32


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4.3. Compensation Standards 33 4.3.1. Compensation Standards for Land Acquisition 33 4.3.2. Compensation Standard for Houses and Auxiliaries Demolition 34 4.3.3. Allowance for Relocation 35 4.3.4. Compensation for Loss of Scattered Trees 35

4.4. Compensation of Other Facilities 36 4.5. Entitlement Matrix 36

5. RESETTLEMENT & REHABILITATION 40 5.1. Target and Task 40

5.1.1. Resettlement Target 40 5.1.2. Resettlement Task 40

5.2. Resettlement Guideline and Principle 40 5.2.1. Resettlement Guideline 40 5.2.2. Resettlement Principle 41

5.3. Overall Scheme of Resettlement 41 5.4. Resettlement Carrying Capacity Analysis 42

5.4.1. Natural Condition and Land Resource 42 5.4.2. Basic Infrastructure Conditions for Production and Living 42 5.4.3. Economic Development Potential of the Affected Area 43

5.5. Resettlement and Rehabilitation Plan 43 5.5.1. Production Rehabilitation Plan 43 5.5.2. House Relocation Plan 44

5.6. Resettlers’ Administrative Management 45 5.7. Minority People Supporting Arrangement 45 5.8. Vulnerable Groups Supporting Arrangement 46 5.9. Rehabilitation Plan for Special Facilities 47

5.9.1. Irrigation canal restoration plan 48 5.9.2. Tractor road restoration plan 48 5.9.3. Electric power line restoration plan 48 5.9.4. Telecom line restoration plan 48

6. RESETTLEMENT COST ESTIMATE 49 6.1. Basis and Principles of Cost Estimate 49

6.1.1. Basis of Cost Estimate 49 6.1.2. Compensation Principles 49

6.2. Compensation Cost Estimate 49 6.2.1. Compensation for land acquisition 49 6.2.2. Compensation for Houses 50 6.2.3. Compensation for Cutting of Scattered Trees 50 6.2.4. Compensation for Special Facilities Reconstruction 50 6.2.5. Other Cost 50 6.2.6. Taxes 51 6.2.7. Total Resettlement Cost 51

7. INSTITUTIONAL ARRANGEMENTS & IMPLEMENTATION SCHEME 53 7.1. Institutional Arrangement 53

7.1.1. Establishment of Resettlement Organizations 53 7.1.2. Working Relations between Organizations 57 7.1.3. Measures for Enhancing Capacity of Organizations 57

7.2. Resettlement Implementation Scheme 58 7.2.1. Implementation Procedures 58 7.2.2. Progress Schedule 60 7.2.3. Resettlement Fund Allocation Scheme 61

8. PARTICIPATION, DISCLOSURE AND GRIEVANCE PROCEDURE 64 8.1. Public Participation 64

8.1.1. Participation in Resettlement Preparation 64 8.1.2. Participation in RP Preparation 64 8.1.3. Participation during Resettlement Implementation 65

8.2. Disclosure of Resettlement Policy and Resettlement Plan 66


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8.2.1. Publicize the Impact Survey Results 66 8.2.2. Clarify the Compensation Policies 66 8.2.3. Prepare and Distribute Resettlement Information Booklet 66 8.2.4. Holding Meetings 67

8.3. Grievance and Appeal 67 9. MONITORING & EVALUATION 68

9.1. Internal Monitoring 68 9.1.1. Target and Task 68 9.1.2. Institution and Staff 68 9.1.3. Monitoring Contents 68 9.1.4. Monitoring Procedures 69 9.1.5. Reporting 69

9.2. External Resettlement Monitoring and Evaluation 69 9.2.1. Target and Tasks 69 9.2.2. Institution and Staff 70 9.2.3. Main Indicators to be Monitored and Evaluated 70 9.2.4. Monitoring and Evaluation Measures 70 9.2.5. Working Processes 72

9.3. Reporting 73 9.3.1. Internal Monitoring Progress Report 73 9.3.2. Independent M&E Report 74

Annex 1: Resettlement Information Booklet 76 Annex 2: Explanation for dry land compensation standard for the Realigned Section of the Tongyan (Tongxin-to-Yanchuanzi) Expressway 82 Annex 3: Jingyuan County Government Document about explanation on land acquisition compensation standard for realigned section (photocopy) 85 Translation of Annex 3 86


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I Executive Summary A. Status of the Resettlement Plan The Tongxin to Yanchuanzi Expressway with a total length of 182 km is part of the main trunk road towards the west part of the country, from Fuzhou City to Yinchuan City (Ningxia). Part of sections of Yin-Fu Road will also connect with other key national key trunk roads, including Qingdao to Hongqilapu, and Shanghai to Wuwei. The Resettlement Plan for the whole Tongxin to Yanchuanzi Expressway was finished in November 2002. According to the new planning of Ningxia Government, an important reservoir for the southern part of Ningxia will be located in the current alignment area of the Expressway section to be constructed. The road section with the total length of 12.72 km within Shizi-Yanchuanzi Section will be realigned. This supplementary resettlement plan is prepared for the proposed realigned section. The section starts from Maxipo Village, Jingyuan County (K191+843.66), and ends at Baijia Village, Jingyuan County (K202+571.972). The length of the realigned section is 10.73 km, which is 1.99 km shorter than the original length. B. Scope of Land Acquisition and Resettlement The Project will have land acquisition and resettlement impacts on 1 county, 2 townships, and 2 administrative villages. 730.82 mu of land will be permanently acquired by the Project, including 88.44% cultivated land (all is dry land). A total of 77 households will be affected. During construction period, 389.84 mu land areas will be occupied temporarily. A total of 1285.5 square meters of houses will be demolished, including 76.3% of brick wood structure, and 23.7% of brick earth wood structures. The demolition will cause relocation of 10 households, averaging 88.81 square meters per household. In total, 77 households will be affected by land acquisition and house demolition. C. Policy Framework and Entitlements For people unavoidably affected, the resettlement objective is to achieve equal or better income and living standards in line with the PRC Land Administration Law (1998), State Council Document No. 28, and the ADB’s Policy on Involuntary Resettlement. According to the policy and basic socioeconomic conditions of project county, land compensation standards have been established based on 14 times the average annual output value (AAOV). The compensation rate for the only affected type of farmland – dry land will be CNY 2500 per mu. Those people losing land temporarily during construction will receive a payment equivalent to production value foregone for the period of loss, which is expected to be 2 years. The land used temporarily will also be restored by the contractor to the original condition. For structures to be demolished, replacement value will be provided to the affected households based on compensation rates, which is CNY 350 per square meter for brick wood structure, and CNY 280 per square meter for brick earth wood structure. Those losing housing will be able to acquire new housing sites with their existing group or village, and close to a road. All sites will be provided with necessary infrastructure conditions at least equal to the relocated households’ pre-relocation level. There will be no reduction in house compensation for depreciation, and people can salvage materials from their old houses.


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D. Resettlement Strategy Efforts to minimize resettlement effects have been made based on consultations with local officials and APs during all the design stages, which avoids towns and large clusters of rural housing. For those unavoidably affected, the resettlement strategy is to replace losses of housing, land, other assets, infrastructure and income. The land acquisition will have a certain impact on the income and livelihood of the affected people. Based on consultation of local affected peoples, most land acquisition compensation will be provided to the affected people in cash, and the rest will be provided to the affected villages, which could be used either on improving existing farming conditions, such as extend irrigation system or investing other sideline or non-land based production activities. The cash to the APs will be used to expand businesses, improve animal husbandry, plant cash crops and tress, and provide income security until they find outside work. It is also recognized that new employment and income generation opportunities would arise during construction and after the expressway is completed. The resettlement entitlements are provided to the people affected prior to the commencement of ground clearance and demolition. Housing compensation and compensation for young crops and other assets will also be provided directly to people losing those assets. The relocated families will receive moving allowances and temporary housing allowances. Compensation for infrastructure will be paid to the concerned government departments for restoration. Also, expressway contractors will give priority to affected households in the allocation of unskilled jobs during construction. E. Institutional Arrangements NHCAB will assume the overall responsibility for implementing resettlement according to the RP. Its coordination department will be directly responsible to coordinate the planning, supervision, financing and reporting of resettlement for the Project. The resettlement office has been set up in the affected county, and staff have been assigned in all affected townships and villages to implement resettlement. The county land and resources office will take the primary responsibility for the resettlement consultation, implementation and timely delivery of entitlements, with assistance from concerned townships and villages. F. Vulnerable Groups For the vulnerable people, including elderly living alone, disabled, household headed by women, and poverty households, the Project will provide additional training and physical support. These entitlements will also be provided to other affected households facing severe impacts and risks caused by land acquisition and house demolition. The specific type of assistance will be determined according to the actual condition and their needs during detailed measurement survey, and included in the updated RP. G. Consultation and Grievance Redress The State Land Law requires disclosure and consultation with APs. Affected villages have been notified about the key elements of the RP during meetings and interviews. Resettlement information will be disclosed to all affected persons. During compensation agreement signing, there will be further notifications and consultations to discuss specific impacts and how they will be addressed.


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In case of grievance, all complaints will be processed based on the Government Regulation Number 431 on Grievance and Redress. People affected can submit their oral or written complaint first to the village committee or the township resettlement team. If their complaint is not settled in two weeks, they can seek redress at the county resettlement office, within one month. If still unresolved within two weeks, the Project owner will try to achieve a solution. The final redress would be sought, if necessary, in the civil courts, in accordance with the Civil Procedures Act. H. Monitoring and Reporting The requirements for internal and external monitoring and evaluation are included in the RP. The independent monitor will ascertain whether APs have (i) received their full entitlements on time and (ii) fully restored their livelihoods, income levels and living standards. The monitor will conduct a baseline survey prior to resettlement, investigations during resettlement, and survey update two years after the completion of resettlement. The monitor will provide ADB and NHCAB with copies of the monitoring and evaluation reports during resettlement implementation and at least a year after resettlement completion. An internal monitoring and reporting system will be established. NHCAB will report to ADB on the progress of land acquisition and resettlement during implementation. After completion of land acquisition and resettlement, they will prepare a resettlement completion report for submission to ADB. I. Resettlement Cost and Implementation Schedule The resettlement budget estimate for the Project is CNY 7.9 million. This includes compensation for land, housing, other assets, moving allowances, assistance for vulnerable groups, infrastructure, administration, taxes, monitoring and evaluation, and contingencies. NHCAB will supplement the resettlement budget, as may prove necessary, to meet any shortfall which emerges in achieving the resettlement objectives. The resettlement implementation schedule has been prepared based on the Project construction timetable agreed by NHCAB and ADB. It is estimated that land acquisition and housing demolition will commence at the beginning of 2009.


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II OBJECTIVES OF RESETTLEMENT PLAN AND DEFINITION OF RESETTLEMENT TERMINOLOGY This Resettlement Plan (RP) is prepared according to the Laws and Regulations of PRC and Ningxia Hui Autonomous Region, as well as the resettlement policy of ADB. The purpose of this document is to set out a policy framework and an action plan for the Resettlement and Rehabilitation of the Project Affected Persons (PAPs) to ensure that they will benefit from the project and their standards of living will improve or at least be restored after the project impact. This RP is a legally binding agreement between the Executing Agency (EA) –Ningxia Highway Construction Administration Bureau (NHCAB) and both the ADB and the local government offices involved with resettlement implementation, whereby NHCAB will take overall responsibility to ensure the action plans are adequately financed and properly implemented by the county governments. This RP will be approved by Ningxia Communication Department on behalf of Ningxia Hui Autonomous Region Government. Acquisition of land and other assets for the project will adversely affect the livelihood of persons who live, work or earn their living on the land that will be acquired for the project. PAPs are defined as those persons whose income or livelihoods will be adversely affected by land acquisition for the project. PAPs include the following categories:

a) persons who have a title, right, interest, in structures (houses, enterprises, shelters, or public buildings), land (including residential, agricultural, and grazing land) or any other asset acquired or possessed, in full or in part, permanently or temporarily;

b) persons who use the structures, land or assets described above; or persons whose business, occupation, work, place of residence or habitat adversely affected; or

c) persons whose standard of living is adversely affected as a consequence of land acquisition and/or resettlement activities.

A definition of PAPs is given below: Definition of the PAPs: “Affected Persons” means persons who on account of the execution of the project had or would have their: a) standard of living adversely affected; or b) right, title or interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed, temporarily or permanently; or c) business, occupation, work or place of residence or habitat adversely affected, and “Affected Person” means individually all those who qualify as “Affected Persons.”

PAPs may be individuals or legal entities such as a company, a public institution. Definition of PAPs is not limited or restricted to their legal registration or permission to live or conduct business in the affected location, or their title to property. Thus it includes:

a) all those affected by the project regardless of their legal rights or absence thereof to the assets being taken; and b) persons without residential permit to live in a certain area.

Therefore all such persons who are affected will need to considered and recorded as PAPs, regardless of their legal status regarding assets, land or location.


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All PAPs are entitled to the improvement or at least restoration of their standards of living, and compensation for the material losses they suffer. Compensation for assets will cover replacement cost. No deductions or discounts will be applied to the compensation amount for depreciation or other reasons. All PAPs deriving an economic benefit from the affected land and property are entitled to receive rehabilitation benefits in addition to the compensation for their assets lost. Those PAPs without title, authorization or legal permission to reside, conduct business, cultivate land or construct structures are eligible for rehabilitation of their livelihoods and compensation for their assets in a fair manner compared with those with formal legal title, authorization or permission to the assets.

The term RESETTLEMENT includes:

a) the relocation of living quarters; b) finding acceptable new employment for those whose jobs are lost or severely

affected; c) restoration (or compensation) of affected productive resources such as land,

workplaces, trees and infrastructure; d) restoration of other adverse effects on PAPs’ living standards (quality of life)

through land acquisition, indirect resettlement impacts or other project impacts; e) restoration of or compensation for affected private and public enterprises; f) restoration of adversely affected on cultural or common property.

Rehabilitation means: The restoration of the PAPs’ resource capacity to continue with productive activities or lifestyles at a level higher or at least equal to that without the project.

The objective of this RP is to provide a plan for the resettlement and rehabilitation of the PAPs so that their losses will be compensated and their standards of living will be improved or at least restored to the pre-project levels in a sustainable manner. Affected productive resources of businesses, enterprises (including shops) and public facilities and infrastructures will also be improved or at least restored to their pre-project levels.


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III THE RESETTLEMENT PLAN II. GENERAL

A. Project Background 1. The Tongxin to Yanchuanzi Expressway with a total length of 182 km is part of the main trunk road towards the west part of the country, from Fuzhou City to Yinchuan City (Ningxia). Part of sections of Yin-Fu Road will also connect with other key national key trunk roads, including Qingdao to Hongqilapu, and Shanghai to Wuwei. The proposed expressway is also important part of main trunks of road network in Ningxia. The completion of this expressway, together with the existing GZ25, will form the main north to south highway framework in Ningxia. It will improve road network in both Ningxia region and Guyuan Municipality (prefecture), which will play an important role to promote regional economy and improve current backward conditions in the project areas. 2. The Resettlement Plan for the whole Tongxin to Yanchuanzi Expressway was finished in November 2002. According to the new planning of Ningxia Government, an important reservoir for the southern part of Ningxia will be located in the current alignment area of the Expressway section to be constructed. About 13-km road section within Shizi-Yanchuanzi Section will be realigned. This supplementary resettlement plan is prepared for the proposed realigned section (hereinafter refer to as “the realigned section” or “the Project”).

B. Project description 3. The original 12.72-km expressway section within Shizi-Yanchuanzi Section will be realigned. This section starts from Maxipo Village, Jingyuan County (K191+843.66), and ends at Baijia Village, Jingyuan County (K202+571.972). The length of the realigned section is 10.73 km, which is 1.99 km shorter than the original length. Under NCD, a unit called Ningxia Yin-Wu Expressway Construction Headquarter (NYECH) was established in 2001 to be responsible for the project preparation and construction. This unit will include the same group of staff and same legal person as for the construction of Yaoye Expressway in 1997, Shizhong Expressway in 1999, Zhonghao Expressway in 2000, and Yin-Wu Expressway in 2001. NYECH has 110 persons, 70 percent with college degrees. The Headquarters consist of a Construction Division, a Quality and Safety Division, a Finance Division, and a Coordination Division (Resettlement) and Office. In April 2006, the Ningxia Highway Construction Administration Bureau (NHCAB) was setup by combining Ningxia Yin-Wu Expressway Construction Headquarters, Ningxia Yin-Gu Expressway Construction Headquarters, and Ningxia Highway Construction Management Center. The departments under NHCAB are similar to those under NYECH.

C. Project Affected Area 4. The county and townships included in the RP study were those where either structures or land will be taken. The affected county is Jingyuan County. Within the county, there are 2 townships affected, including 2 administrative villages and 4 village groups and 77 households affected. (Table 1.1)

Table II.1 Number of Administrative Units Involved


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County Township Administrative Villages

Village Groups

Affected Households

Jingyuan 2 2 4 77* *: The number of the affected households will be reconfirmed during compensation agreement signing.

D. Measures to Reduce the Project Impact 5. In order to ensure that some people are not disadvantaged in the process of development, efforts have been made by NHCAB to avoid or minimize resettlement effects. If impacts are unavoidable, the NHCAB through compensation and rehabilitation will help to restore the quality of life and livelihoods of those affected. There will also be opportunities to improve the quality of life, particularly for vulnerable groups. Based on this, following measures have been taken or will be taken during the design and construction period in order to minimize resettlement impacts. Through realignment, the impacts on land and house decreased largely. Please refer to the following table for details: Table 1.2 Comparison of impacts of land and house before and after realignment

in the realigned section

Item Dry land Other land Total Unit mu mu mu

Before realignment 1024.75 284.33 1309.08 After realignment 646.36 84.46 730.82

Change -36.93% -70.30% -44.17% Item Brick timber house Timber tile house Total Unit sq.m. sq.m. sq.m.

Before realignment 710 2106 2816 After realignment 888.1 397.4 1285.5

Change 25.08% -81.13% -54.35% 1. Minimize the Project Impact Area

6. When aligning the route, a key design principle was to minimize the land acquisition and house demolition of expressway. This was achieved by: (a) avoiding cities, towns and densely populated residential areas; (b) occupying as little land as possible; and (c) placing the alignment close to, rather than through, villages. 2. Reducing the Impact of the Project Construction

7. During the project planning and design stages, the Design Unit and the Project Owner has adopted some effective measures to reduce project impact on production and living conditions of local residents.

A. Recognize the impacts and inconvenience brought upon by the construction of the expressway and adopt measures such as building elevated pass-way or underground passageway for those residential concentrated areas; when passing through a township town, parallel local roads will be provided; and all highway pass-ways will be designed to accommodate farm-use vehicles and transporting animals. For those


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affected irrigation canals, they will be restored in order to ensure the normal farming activities will not be adversely affected.

B. Optimize construction design, reduce construction period, and plan housing

removal and construction in reasonable period such as during farm slack season, so as to decrease the project impact on local production. Longer-term (more than 2 years) construction sites that acquire land temporarily should utilize wasteland as far as possible.

C. Reduce the dust and treatment of waste materials. Construction contractors

should carefully select routes for transporting soil and stone, and adopt measures to prevent the falling of soil on the roads. There are many waste materials produced in construction sites because of the long project construction period and large number of employees. The Project owner and construction contractors should follow the environmental regulations and requests of local environmental and hygienic departments on treatment of the domestic waste materials in the site of construction sites in order to prevent epidemics.

3. Establish a feasible Resettlement Plan and implementation programs 8. When land acquisition and house demolition are inevitable, according to the regulations from the PRC, Ningxia Hui Autonomous Region, and the resettlement policy of the ADB, the project office will ensure adequate compensation and rehabilitation based on Resettlement Plan. The preparation of RP is based on extensive involvement of local officials and PAPs in consultation, collecting basic information, analyzing local socio-economic conditions, and combining local actual condition to develop a feasible RP in order to ensure basic interests of affected people are protected and livelihood and income of affected people are restored. 9. In order to guarantee the smooth implementation of the resettlement plan, the following works will be adopted during the construction period.

A. Strengthening internal monitoring and external monitoring on resettlement

implementation; and setting up an effective feedback system in order to solve problems in timely fashion in resettlement implementation.

B. Enhancing Public Awareness and Participating: Before project construction,

construction schedule notices will be posted in project impact areas and resettlement areas. Meanwhile, the compensation policies of land requisition, house removal and resettlers’ relocation will be published, which will be monitored by the PAPs. During construction, priority will be given for using local materials, local transportation means and local labor forces, so affected people can obtain additional benefits from the project.

E. Project Cost Estimate and Implementation Schedule

10. According to the real situation of the Expressway, the implementation of the civil construction was divided into 3 sections. The timetable for the 3 sections is as follows:

• Construction (Section 1) May 2004 - Oct.2007

• Construction (Section 2) July 2005 - Oct 2008


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• Construction (Section 3, including realigned section) April 2009 - 2011

11. For details of the section division, please refer to the following maps showing sections 1, 2 and 3 (realigned section).


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Map 1-1 Illustration map showing different sections of the Expressway


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Map 1-2 Illustration map showing the realigned section

F. Preparation for Resettlement Planning 1. Impact inventory survey 12. Based on the scope of the land acquisition for the Project, determined by Ningxia Highway Investigation and Design Institute (NHIDI), in December 2007, the Project Office organized a resettlement impact inventory survey team with staff coming from NHIDI and relevant local county and township governments. The survey team carried out a survey in the project area on the project impact inventory including affected population, demolished houses, and acquired land areas. 2. Socioeconomic Survey 13. After the impact survey, in order to analyze the Project’s social impact and prepare a feasible and practical RP, a social-economic survey was carried in December 2007. The survey covers the existing social and economic conditions of affected counties, townships, villages, and individual households and the extent of the possible impact induced by the project on the local social and economy. The survey was based on a combination of collecting various statistical social and economic data among affected townships and villages and conducting 17 sample household interviews in 2 villages in the project affected areas. The purpose of the socioeconomic survey was threefold. 14. One is to have a basic understanding of social economic conditions and development plan for the project areas affected by land acquisition and house relocation, which will be based on collecting different data and statistics from planning, statistics,


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agricultural departments of local government, including: GDP, national income, gross agricultural output value, per capita income, agricultural and sideline products, various price information, agricultural planting patterns, farming area, per mu yield, farm land tenure conditions and annual statistical reports. 15. The other is to have a clear picture of production and living conditions of the affected villages and individuals and potential impacts of land acquisition and house demolition on these communities. It will be based on existing village annual reports and sample survey among affected households. 16. Third, to provide partial baseline for resettlement monitoring and evaluation program to be carried out during resettlement implementation. 3. Resettlement Planning 17. The resettlement planning of the project is organized under the leadership of the Project Owner and local government at all levels. Based on the impact survey and extensive consultation among affected villagers, a resettlement plan was prepared. It is believed that after resettlement and rehabilitation together with the local economic development brought by the Project, the living standard of the resettlers will reach or exceed that before resettlement.

G. Policy Basis and Objective of Resettlement Plan 1. Policy Basis 18.

(1) The Land Administration Law of the People’s Republic of China (Promulgated by Order No.8 of President of the Peoples’ Republic of China on August 29, 1998, and effective as of January 1, 1999);

(2) Implementation Regulations for Land Administration Law of the Peoples

Republic of China (Promulgated by Order No.256 of the State Council of the Peoples Republic of China on December 27, 1998, and effective as of January 1, 1999);

(3) Land Administration Regulation for Ningxia Hui Autonomous Region

(Promulgated on November 17 2001). (4) Decree on Compensation Rates for Land Acquisition and Resettlement for

Western Corridor – Yinchuan to Wuhan Expressway (Ningxia Section), Ningxia Hui Autonomous Region Government, no. 192, 2001.

(5) ADB Resettlement Policy: Handbook on resettlement: A Guide to Good

Practice. (6) ADB policy on minority people.

2. Planning Principles Adopted by the Project 19.

(1) Adopting engineering, technological, economical measures to avoid and minimize land requisition and house relocation; however, when land requisition and house relocation is unavoidable, effective measures should be taken to


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reduce or minimize impacts on production activities and living conditions of local residents.

(2) In the preparation stage of the project, social economic investigation has

been conducted and detailed resettlement plans should be prepared. (3) Resettlement plan should be based on the affected property indexes and

compensation standards to improve, and at least to restore the original living standard of resettlers.

(4) Promoting developmental resettlement. Resettlement in rural area should

be land based, supported by advanced local second and tertiary industries to seek more employment.

(5) The project proponent should encourage PAPs to take part in the

resettlement planning. (6) Relocated population should be first resettled within their own

communities (7) Resettlement and original residents in the resettlement area should benefit from the project. (8) Vulnerable people including those extremely poor people with annual per capita income below CNY580 should be provided additional mitigation or entitlements to improve their standard of living.


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III. THE SOCIOECONOMIC PROFILE OF THE AFFECTED AREA

A. Nature and Geography of Project Affected Areas 20. The realigned section is located in Guyuan Municipality in the south part of Ningxia Autonomous Region. Guyuan Municipality borders with Wuzhong City to the north, and Gansu Province to the east, south and west. The total land area of Guyuan Municipality amounts to 16,782 square kilometers. Guyuan Municipality consists of 6 counties, including Yuanzhou, Jingyuan, Xiji, Longde, and Pengyang. By the end of 2006, the total population was 1,512,268. Besides Han nationality, there are 14 ethnic minorities with Hui being the major minority population (657,938 people). The Project will affect Jingyuan County. 21. Jingyuan County is located to the south of Guyuan County. It borders Longde County to the west, and Gansu Province to the east and the south. Jingyuan County is a national poverty county with mountain and ethnic minority as its main characteristics. The total land area is 1130.9 square kilometers. By the end of 2006, the population in Jingyuan County had been 121,140, with Hui nationality accounting for 75.13%. Among total population, 111,483 people were rural population. Among total area, there are 16,800 ha farmland. The minerals include lead, silicon, etc. The main tourist attractions include Liupan Mountain.

B. Socioeconomic Profiles of Project Affected Areas 22. Guyuan Municipality (prefecture level) is located in the south of Ningxia Hui Autonomous Region. Since the 1990s, under strong support by both state government and Ningxia government, the people in Guyuan have achieved relative strong growth in its economy. By the end of 2006, the GDP reached to CNY5.193 billion. Among the total GDP, the primary sector was 1.402 billion. The secondary sector was 1.073 billion. And the tertiary sector was 2.718 billion. The current sector structure also indicates that in Guyuan, the percentage of agriculture sector is still high in the whole economy, and the industrial sector is relatively weak. While the tertiary sector represented by tourist and trade is developing along the way. Table provides basic social economic indicators in Guyuan in the past 15 years. It is noted that the population in Guyuan Municipality experienced decline between 1990 and 1995, since 1999, and 2004. Because Haiyuan County under Guyuan became one county of Zhongwei Municipality in 2004. One explanation of such decline between 1990 and 1995, since 1999 is because of out migration under poverty alleviation programs, which have successfully resettled many poor people from resource deficient remote mountain areas to the irrigated plain in Ningxia Hui Autonomous Region. Guyuan Municipality is one of such poverty related resettlement target area and poverty related resettlement has been implemented for a number of years, this also explains the population decline in Jingyuan County and Haiyuan County in recent years. The Poverty Alleviation Office has confirmed that the reason of the population decrease in Guyuan Municipality is poverty alleviation resettlement. Such resettlement and relocated people are based on poverty line instead of nationality. For example, it appears that the relocated population in the one village of Jingyuan County is mainly Han.

Table 2.1 Main social-economic data of Guyuan City in Recent Years

Index Year

Population （）million

GDP （million

GDP per capita

Per capita rural income

Percent of Hui Nationality


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）CNY (CNY/per) (CNY/per) 1990 1.62 351.7 46.7% 1995 1.48 553.4 58.6% 1999 1.92 1007.5 48.1% 2000 1.86 2166.4 1159 927.8 47.4% 2001 1.87 2600.0 1390 1034.4 47.3% 2005 1.51 4488.0 2980 1715.0 42.9% 2006 1.51 5193.0 3463 1925.0 43.5%

Source: Ningxia Statistical Yearbook 2001, Guyuan City Statistical Yearbook 2002, Ningxia Statistical Yearbook 2006 and 2007. 1. Basic Profile of Affected County 23. The land requisition and house relocation will involve Jingyuan County. Jingyuan County is a national poverty county with 98 percent of land area being mountainous. In 2006, the total population is 121,140 with 75.13 percent being Hui nationalities. Due to poor natural condition, lack of capital and poor infrastructure, Jingyuan economy has always been lagging behind. In the recent years, along with gradual improvements on transport and infrastructures, steady economic growth was achieved in Jingyuan County. The GDP reached to CNY376.9 million in 2006, averaging CNY3,111 per person. The average annual per capita net income in rural area in 2006 was CNY1,738. The basic social economic indicators for Jingyuan County in recent years are presented in Table 2.2.

Table 2.2 Main social-economic data of Jingyuan County in Recent Years

Index Year

Population （）1000

GDP (million CNY)

GDP per capita （）CNY/per

Rural Per Capita Income

(CNY/person) 1990 93,500 40.0 427.8 246 1991 95,600 43.0 449.8 260 1992 97,600 40.0 409.8 237 1993 99,000 38.0 383.8 305 1994 103,700 67.0 646.1 465 1995 105,800 61.0 576.6 457 1996 106,000 83.0 783.0 615 1997 108,900 92.0 844.8 699 1998 109,100 106.0 971.6 774 1999 112,200 115.0 1025.0 946 2000 81,900 88.0 1074.5 971 2001 83,300 100.7 1208.9 1025 2005 122,325 326.2 2702.0 1508 2006 121,140 376.9 3111.0 1738

Source: Guyuan City Statistical Yearbook for 2000 and Jingyuan County Statistical Yearbook 2002. Ningxia Statistical Yearbook 2006 and 2007. 2. Profile of affected townships 24. The realigned section will affect 2 townships. Of the 2 townships or towns, there are 41 administrative villages, 168 village groups, 14,703 households and 51,086 persons. There is 108,930 mu of farmland in these 2 townships, averaging 2.13 mu per person. Of total population, about 59.4% are Hui nationality. Agricultural income only holds a small proportion of total income in the project affected areas. According to the


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official statistical data, in 2006 agricultural income accounted for 17.76% of farmers’ total income in Jingyuan County. For dry land, the main crops are corn and wheat, but with much less yield, averaging below CNY200 per mu. The basic profile of affected townships is shown in Table 2-3.

Table 2.3 Basic profile of affected townships (1)

County Township Village Village group Household Person

Unit Number Number Household Person Jingyuan Liupanshan 22 86 5367 20092

Xiangshui 19 82 9336 30994 Total 41 168 14703 51086

Table 2.3 Basic profile of affected townships (2)

County Township Hui Nationality % of Hui Nationality

Rural labors Farmland Per capita

farmland Unit Person % Person Mu Mu/ person

Jingyuan Liupanshan 1648 8.20% 12428 69930 3.48 Xiangshui 28188 90.95% 12826 39000 1.26

Total 29836 58.40% 25254 108930 2.13 3. Profile of affected villages 25. Among the 2 townships, 2 villages will be affected by land acquisition and resettlement, which accounts for 4.88％ of total administrative villages. Of these 2 affected villages, there are 211 households and 842 individuals. The average family size is 3.99 persons. Among these 2 villages, there is 4380 mu of dry land. Among that, 3540 mu has been returned from farming to forestry. The rest 840 mu is cultivated land. In average, each rural person will have 1.00 mu of cultivated land. Of total population in 2 affected villages, there are 174 persons of Hui nationality, accounting for 20.67% of total population. The distribution of Hui nationality is to concentrate on certain villages. There is 100% of Hui population in total in Baijia Village, and no Hui population in Maxipo Village. The following tables provide basic profile of affected villages.

Table 2.4a Basic profile of affected villages (1)

Township Village Numbers of village groups

Total household

Total population

Person per household

Hui population

Hui percentage

in total Unit household person Person person %

Liupanshan Maxipo 2 168 668 3.98 0 0.00% Xiangshui Baijia 2 43 174 4.05 174 100.00%

Total 4 211 842 3.99 174 20.67%

Table 2.4b basic profile of affected villages (2) Township Village Dry land Among that: Cultivated Per capita Average net


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returned from farming to forestry

land cultivated land income per farmer

Unit mu mu mu mu/person CNY/person Liupanshan Maxipo 2960 2520 440 0.66 2160 Xiangshui Baijia 1420 1020 400 2.30 1740

Total 4380 3540 840 1.00 Introduction of Maxipo Village 26. The total population is 668, and the total households are 168. 100% of the villagers are Han Nationality. The total area of the farmland is 2960 mu, and all of the farmland is dry land. Among the total dry land, 2520 mu has been returned from farming to forestry. Only 440 mu is cultivated land so the per capita cultivated land holding is 0.66 mu. The reported per capita annual net income in this village in 2007 is CNY 2180. Introduction of Baijia Village 27. The total population is 174, and the total households are 43. 100% of the villagers are Hui Nationality .The total area of the farmland is 1420 mu, and all of the farmland is dry land. Among the total dry land, 1020 mu has been returned from farming to forestry. Only 400 mu is cultivated land so the per capita cultivated land holding is 2.30 mu. The reported per capita annual net income in this village in 2007 is CNY 1740. 4. Basic Profile of Affected Households 28. In order to have a better understanding of basic profile of affected households and facilitate the analysis of their impacts and development of resettlement policies and rehabilitation measures, along with project impact survey, a social economic survey was carried out during December 2007, which was based on sample survey among affected households and affected villages. A total of 17 sample households with 80 persons in the 2 affected villages were selected, accounting for 22.08% of total affected households. 2.2.4.1 Basic demographic characteristics 29. The average household size of the population surveyed was 4.71 persons. A high proportion of households (55%) have 4-5 persons and there are very few small or very large families.

Table 2.5 Household size

HH size Number of HHs Total population % 2 2 4 5.00% 4 6 24 30.00% 5 4 20 25.00% 6 3 18 22.50% 7 2 14 17.50%

Total 17 80 100.00% 30. 30% of the population is aged less than 17 years and 11.25% are over 59 years. 58.75% of the population are working-age adults. 52.50% of people in surveyed households are male, and 47.50%, female. 76.25% of people in surveyed households


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are Han Nationality, and 23.75%, Hui Nationality. No other nationalities were found. For details of the distribution of age, gender and nationality, please refer to the following table.

Table 2.6 Age distribution

Age Person % ≤16 24 30.00%

17-59 47 58.75%≥60 9 11.25%

Total 80 100.00%

Table 2.7 Gender distribution

Gender Person % Male 42 52.50%

Female 38 47.50%Total 80 100.00%

Table 2.8 Nationality distribution

Nationality Person %

Han 61 76.25%Hui 19 23.75%

Total 80 100.00% 2.2.4.2 Land and Housing Resources 31. There is only dry land in the affected areas. The average dry land per capita amongst the households interviewed is 3.63 mu. Among that, 2.82 mu per capita have been returned from farming to forestry in recent years. Therefore, the average cultivated land per capita was 0.81 mu. In the surveyed households, the average floorspace per household is 106.06 square meters, and per capita, 22.54 square meters. For details, please refer to the following tables.

Table 2.9 Land resources

Total Item Total Per household Per capita

Dry land 290.1 17.06 3.63 Among that: returned from farming to forestry 225.5 13.26 2.82 Cultivated land 64.6 3.80 0.81

Table 2.10 Housing resources

Item unit amount

Total floorspace sq.m 1803 On average floorspaceper household sq.m 106.06


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On average floorspaceper capita sq.m 22.54 2.2.4.3 Household net incomes in 2007 32. The following table presents the distribution of household net incomes in the surveyed households. It indicates that all the people have average annual net incomes above CNY 1,600 per capita. And all the around 49% of people have annual net incomes above CNY 2,500 per capita.

Table 2.11 Distribution of annual net income per capita

Annual income per capita (CNY)

Number of persons %

1600-2000 26 32.50% 2000-2500 15 18.75% 2500-3000 10 12.50% 3000-4000 16 20.00% 4000-6000 6 7.50% ＞6000 7 8.75% Total 80 100.00%

33. The following table shows the different net income sources in the surveyed households. It indicates the variety of economic activity carried out along the proposed alignment. Because the affected villages are located in mountainous areas, the output from their only farmland type- dry land is very low. According to the survey results, the farming income only accounts for 6.46% of their total income. Most of their income now comes from the outside job, which was called wage income.

Table 2.12 Net income sources

Item Total Per household Per person PercentageUnit CNY CNY CNY %

Wage income 136,800 8,047 1,710 55.42% Farming income 15,952 938 199 6.46% Sideline income 58,000 3,412 725 23.50% Other income 36,080 2,122 451 14.62% Total 246,832 14,520 3,085 100.00% Notes, according to the survey, other income is mainly the allowance from the governments for the land returned from farming to forestry 2.2.4.4 Household expenditure in 2007 34. The following table presents the distribution of household expenditure in the surveyed households. It indicates that around 29% of the households have annual expenditure above CNY 2,000 per capita and around 71% have annual expenditure between CNY 1,300 and 2,000.

Table 2.13 Distribution of annual living expenditure


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Annual expenditure (CNY) Number of persons % 1300-1450 25 31.25% 1450-1600 19 23.75% 1600-2000 13 16.25% 2000-3000 16 20.00% ＞3000 7 8.75% Total 80 100.00%

35. The following table shows the expenditure distribution in the surveyed households. It could be found that nearly half of their total expenditure is for food (49%).

Table 2.14 Expenditure distribution

Item Total Per household Per capita PercentageUnit CNY CNY CNY %

Food 73,152 4,303 914 48.77% Clothing 8,516 501 106 5.68% Transport and communication 18,370 1,081 230 12.25% Medicines and medical care 14,850 874 186 9.90% Other 35,116 2,066 439 23.41% Total 150,004 8,824 1,875 100.00% 2.2.4.5 Other Related Issues Knowledge of and attitude to the proposed expressway 36. By the time the socio-economic survey was undertaken, 100% of the surveyed households knew of the proposed expressway. All of the surveyed households recognized that the Project is necessary, because they thought that the Project would provide with them new opportunities to develop transportation, go outside to do their jobs, and run some business. Therefore, 100% of the surveyed households support the Project. Options to be resettled after land acquisition 37. According to the survey, after land acquisition, 88.24% of the surveyed households prefer to receive cash compensation paid directly to them. Only 11.76% of the surveyed households (2 households) prefer to receive replacement land, because they would rather plant farmland. In addition to their contracted dry land, they are now also planting other farmers’ contracted land and pay the rental at CNY 40 per mu per year. However, if enough cash compensation could be received they would lease more farmland to make up for their land loss. Therefore, the decision of cash compensation for contracted land acquisition is based on the APs’ options, and will be acceptable to the APs.


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IV. PROJECT IMPACT

A. Determination of Project Impact Scope 1. Permanent Land Acquisition 38. The permanent land acquisition for the Project includes roadbed, bridge and culvert, interchange, service facilities, security facilities, traffic maintenance facilities, parking facilities and nursery structures. All the land requisition areas and the areas where the resident’s living and production condition will be severely affected by the highway construction and can’t be rehabilitated will be included in the project permanent land acquisition scope. The scope of permanent land acquisition area is based on the project design prepared by NHIDI at the end of 2007, and partly adjusted land acquisition area determined by field survey. 2. Temporary Land Occupation for Construction 39. Under the Project, the temporary land occupation includes quarry and sandpit, material mixing plant, spoil area, living and production area during construction and temporary access road for construction. The approximate amount of temporary land occupation for the proposed project has been identified during project design stage but cannot be accurately determined until contractors actually start construction.

B. Impact Inventory Survey 40. In order to find out the actual amount of land acquisition and housing demolition as well as affected persons among affected villages, based on the impact scope determined by the NHSDI in the field, an impact survey was carried out in December 2007. The survey team was made of staff from Project Office, NHSDI, and the local governments. The inventory survey covered all items affected by the project, including affected population, demolished houses, acquired land areas and special facilities. The field-survey was carried out village by village and household by household, and covered all affected aspects, ranging from acquired land areas, demolished houses, to removed trees and various affected community facilities. The main survey methods are described as follows: 41. Land survey: The land survey data was provided by NHIDI according to the preliminary results of the field survey. 42. Demography: The population affected by the project was divided into two categories, those affected only by land acquisition, and those affected only by house. Based on the actual population affected, sample survey of affected persons has been conducted including their age, gender, nationality, farmland, houses and income and expenditure. 43. House and auxiliary survey: The house survey data was provided by NHIDI according to the preliminary results of the field survey. 44. Scattered tree survey: The scattered tree survey data was provided by NHIDI according to the preliminary results of the field survey.


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45. Special facility survey: The special facility survey data was provided by NHIDI according to the preliminary results of the field survey.

C. Affected Inventory (Project Impacts) 46. Based on the impact survey, the Project will have land acquisition and resettlement impacts on 1 county, 2 townships, and 2 administrative villages. 1. Land Acquisition

a. Permanent land acquisition 47. According to the survey and revision in November 2008 according to final design, about 730.82 mu land will be permanently acquired by the Project, including 88.44% cultivated land (all is dry land). Another 25.65 mu of State-owned river will be used, so the total land occupation will be 756.47 mu. A total of 77 households will be affected. The amount of land acquisition in each affected village is presented in Table 3.1. The impacts of land acquisition on each affected village are described in Table 3.2.

Table 3.1 Land acquisition by village

Village Dry land

returned to forestry

Cultivated dry land

Housing plot

Waste land

Shrub forest land

Other collective

land

Total collective

land acquisition

State-owned river use

Total land occupation

Unit mu mu mu mu mu mu mu mu mu Maxipo 112.67 262.89 6.58 6.58 382.14 1.16 383.30 Baijia 108.32 162.48 38.47 39.41 77.88 348.68 24.49 373.17 Total 220.99 425.37 6.58 38.47 39.41 84.46 730.82 25.65 756.47

Table 3.2 Impacts of land acquisition on each village

Village Total dry land

Total cultivated dry land

Total HHs

Per HH cultivated dry land

Dry land to be acquired

Affected HHs

Affected dry land in village

Affected cultivated dry land in

village

Affected HHs in Village

Cultivated dry land loss per affected household

Total Cultivated Unit mu mu no. mu mu mu no. % % % mu %

1 2 3 4 5 6 7 8 9 10 11 12 13 Maxipo 2960 1776 168 10.57 375.56 262.89 40 12.69% 14.80% 23.81% 6.57 62.16%Baijia 1512 680.4 43 15.82 270.80 162.48 37 17.91% 23.88% 86.05% 4.39 27.75%Total 4472 2456.4 211 11.64 646.36 425.37 77 14.45% 17.32% 36.49% 5.52 47.42%

b. Temporary Land Occupation

48. Based on the current stage design result, a total of 389.84 mu land areas will be occupied temporarily during construction period. 2. Demolished Houses


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a. Houses Demolition 49. According to the alignment of the expressway based on the final design, a total of 1285.5 square meters of houses will be demolished, including 76.3% of brick wood structures, and 23.7% of brick earth wood structures. The demolition will cause relocation of 10 households, averaging 88.81 square meters per household. A deserted brick wood structure with a total area of 397.4 square meters will also be demolished. That structure was used by Maxipo Primary School before. As a “Hope School” program, Xiamen Xinheda Electronic Co., Ltd. donated CNY 250,000 to build a new Maxipo Primary School. The new school construction was finished in early 2008, and all the students entered new school in the spring semester of 2008. Table 3.3 provides the details of structure demolition and affected households. Table 3.3 Houses demolition and relocation in affected villages

Village Brick wood

Brick earth wood Total Affected

households Unit Sq.m Sq.m Sq.m Household

Maxipo Village 583.4 304.7 888.1 10 Maxipo Primary School 397.4 0.0 397.4 0 Total 980.8 304.7 1285.5 10

3. Affected population 50. According to the impact survey, a total of 77 households would be affected by land acquisition and houses demolishing. Among them, 10 households will be affected by house demolition and relocation (Table 3.3); and 77 households would be affected by land acquisition (Table 3.2). Since the alignment of the project is a narrow strip, most of the affected people will only lose part of their land holding. A more accurate account of number of directly affected people will be available after detailed measurement survey. 4. Scattered trees to be removed 51. According to the survey results based on the final design, about 635 various trees located around demolished houses or on the required land will be removed during the project construction. For details, please refer to Table 3.4. Table 3.4 Scattered trees to be removed

Item unit amount Spruce no. 92 Pear no. 480

Fruit tree seedling no. 8 Unspecified trees no. 55

Total no. 635 5. Affected Special Facilities


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52. According to the survey, the special facilities or infrastructures affected by the project are mainly power transmission line and telecommunications lines.

6. Affected Minority People 53. Among the 77 households affected by land acquisition and house demolition of the project, 40 households in Maxipo Village are all Han Nationality, and households in Baijia Village are all Hui Nationality. So about 52% of AP are Han Nationality, and 48% of AP are Hui Nationality.


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V. POLICY FRAMEWORK 54. The preparation and implementation of resettlement for this Project shall follow the Laws and Regulations promulgated by PRC and Ningxia Hui Autonomous Region, and also meet the requirements of ADB’s relevant policies. The adopted compensation standards and rehabilitation measures in the RP will be followed during resettlement implementation. If there is any major policy change during project implementation, the project owner will consult with ADB and reach agreements.

A. Policy Basis 55.


(2) Implementation Regulations for Land Administration Law of the Peoples

Republic of China (Promulgated by Order No.256 of the State Council of the Peoples Republic of China on December 27, 1998, and effective as of January 1, 1999);

(3) Land Administration Regulation for Ningxia Hui Autonomous Region

(Promulgated on November 17 2001).

(4) Decision of the State Council on Deepening Reform and Tightening Land Administration (State Council Decree 28 of 2004) (Promulgated in October 2004);

(5) Implementation Opinion of Ningxia Hui Autonomous Region Government on

"Decision of the State Council on Deepening Reform and Tightening Land Administration" (Ningxia Government Decree 49 of 2005) (Promulgated in May 10, 2005);

(6) Decree on Compensation Rates for Land Acquisition and Resettlement for

Western Corridor – Yinchuan to Wuhan Expressway (Ningxia Section), Ningxia Hui Autonomous Region Government, no. 192, 2001.

(7) ADB’s “Involuntary Resettlement Policy” November 1995 and guidelines -

“Handbook on resettlement: A Guide to Good Practice” 1998.

(8) ADB’s safeguard policy for ethnic minorities.

(9) ADB’s Poverty Reduction Strategy. B. Relevant Provisions of the Laws and Regulations

1. Land Administration Law of the People's Republic of China"

56. Land owned by peasant collectives that belongs lawfully to peasant collectives of a village shall be operated and managed by collective economic organizations of the village or by villagers’ committees; land already owned by different peasant collectives that belong to two or more different collective economic organizations in the village shall be operated and managed by the rural collective economic organizations in the village or by villagers’ groups; land already owned by peasant collectives of a township (town) shall


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be operated and managed by rural collective economic organizations of the township (town). (Article 10) 57. Land requisitioned shall be compensated for on the basis of its original purpose of use. (Article 47) 58. Compensation for requisitioned cultivated land shall include compensation for land, resettlement subsidies, attachments and young crops on the requisitioned land. Compensation for requisition of cultivated land shall be six to ten times the average annual output value of the requisitioned land for three years preceding such requisition. Resettlement subsidies for requisition of cultivated land shall be calculated according to the agricultural population that needs to be rehabilitated. The agricultural population that needs to be rehabilitated shall be calculated by dividing the amount of requisitioned cultivated land by the average per capita cultivated land in the affected village prior to land acquisition. The standard of resettlement subsidy shall be four to six times the average annual output value of the requisitioned cultivated land for three years preceding such requisition. However, the highest resettlement subsidies for each hectare of the requisitioned cultivated land shall not exceed fifteen times its average annual output value for the three years preceding such requisition. (Article 47) 59. Standards of land compensation and resettlement subsidies for requisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for requisition of cultivated land. 60. Standards for compensation for attachments and young crops on the requisitioned land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government. 61. If land compensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of the Article are still insufficient to help the peasants who need economic rehabilitation to maintain their original living standards, the resettlement subsidies may be increased upon approval by people’s governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsidies shall not exceed 30 times the average annual output value of the requisitioned land for the three years preceding such requisition. 62. The State Council may, in light of the level of social and economic development and under special circumstances, raise the standards of land compensation and resettlement subsidies for requisition of cultivated land. 63. Once a plan for compensation and resettlement subsidies for requisition land is decided on, the local people’s government concerned shall make it known to the general public and solicit comments and suggestions from the collective economic organizations, the land of which is requisitioned, and the peasants. (Article 48) 64. The rural collective economic organization, the land of which is requisitioned, shall accept supervision by making known to its members the income and expenses of the compensation received for land requisition. (Article 49) 65. The compensation and other charges paid to the unit for its land requisitioned is forbidden to be embezzled or misappropriated.


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66. Local people’s governments at all levels shall support the rural collective economic organizations, the land of which is requisitioned, and the peasants in their efforts to engage in development or business operation or to start enterprises. (Article 50) 67. Where land owned by the State or by peasant collectives needs to be used temporarily for construction of projects or for geologic prospecting, the matter shall be subject to approval by the land administration departments of people’s governments at or above the county level. However, if the land to be temporarily used is located in the area covered by urban planning, the matter shall be subject to agreement by the urban planning administration department concerned before it is submitted for approval. The land user shall, depending on who owns the land and who has the land-use right, enter into a contract for the temporary use of the land with the land administration department concerned, or the rural collective economic organization, or the villagers committee and pay compensation for it in accordance with the provisions of the contract. The temporary land user shall use the land for purposes stipulated in the contract for temporary use of the land and may not build permanent structures on it. Generally, the period for temporary use of land shall not exceed two years. (Article 57) 68. For villagers, one household shall have only one house site, the area of which may not exceed the standard set by provinces, autonomous regions and municipalities directly under the Central Government. (Article 62) 69. Villagers shall build residences in keeping with the township (town) overall plan for land utilization and shall be encouraged to use their original house sites or idle lots in the village. 2. The Regulations of Land Administration in Ningxia Hui Autonomous Region 70. The compensative standard of the land requisitioned: (Article 46) (1) Land compensation: the compensation of cultivated land should be 6 – 10 times of the annual average productive value for last 3 years; the compensation of acquired vegetable land, fruit trees, nursery, fish pond should be 8 – 10 times of the annual average productive value for last 3 years; the compensation of newly developed farmland, rotating farmland should be 4 - 6 times of the annual average productive value for last 3 years; the compensation of acquired grazing land, idled land, and lake areas should be 2 – 3 times value of the same as said above; and the compensation for wasteland should be 1-2 times of the annual average productive value for last 3 years. The compensation for housing plot should follow the compensation of cultivated land nearby. The compensations for the state key construction project should adopt the low limit of the compensation rates. (2) Resettlement Subsidy: for the acquisition of cultivated land (including vegetable, fruit tree, nursery, and fish pond), the resettlement subsidy should be calculated based on number of agricultural population need to be rehabilitated. The number of agricultural population needing economic rehabilitation is obtained by dividing acquired cultivated land with the average per capita farmland of the affected village prior to land acquisition. For each rehabilitated person, the resettlement subsidy should be 6 times the annual average productive value for last 3 years. However, for each ha of farmland, the total amount of resettlement subsidy should not exceed 15 times of the annual average productive value for last 3 years. For the acquired other land areas among rural collectives, the resettlement subsidy should be set at 2 to 4 times of the annual average productive value for last 3 years for each affected person. However, for each ha of other


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farmland areas, the total amount of resettlement subsidy should not exceed 10 times of the annual average productive value for last 3 years. For acquired un-utilized land, no resettlement subsidy should be provided. (3) Green Crop Compensation: for average crops (including artificial grass), the compensation will be based the average annual productive value in the past three years. For perennial crops, the compensation will be based on 2-3 times of average annual productive value in the past three years. For uncultivated land, no green crop compensation should be provided. (4) It the above land compensation and resettlement subsidies still could not meet the need of restoring original livelihood, with approval of the autonomous regional government, the resettlement subsidy could be increased. However, the total land compensation and resettlement subsidy should not exceed 30 times of the average annual productive value in the past three years. Implementation Opinion of Ningxia Hui Autonomous Region Government on "Decision of the State Council on Deepening Reform and Tightening Land Administration" (Ningxia Government Decree 49 of 2005) (Promulgated in May 10, 2005); 71. Article 12 stipulates that the combined total of land compensation and resettlement subsidy in mountainous area (including all the counties along the Expressway) should not be lower than 10 times the yearly average output value of the land in the previous three years. Decree on Compensation Rates for Land Acquisition and Resettlement Yinchuan to Wuhan Expressway (Ningxia Section) Ningxia Hui Autonomous Region Government, no. 192, 2001. 72. The decree specified a series of compensation rates for acquired farmland and demolished structures for the proposed Yin-Wu Expressway, which will be used as the basis for setting up compensation standards for the prepared Resettlement Plan. According to the consultation with Ningxia Poverty Alleviation Office and Ethnic Affairs Commission, there are no special laws and regulations for ethnic minorities and for poverty alleviation that are relevant to involuntary resettlement at provincial level. 3. ADB Policies 73. ADB’s policy on involuntary resettlement includes the following principles: (1) Involuntary resettlement should be avoided where feasible. (2) Where population displacement is unavoidable, it should be minimized by exploring all viable project options. (3) People unavoidably displaced should be compensated and assisted, so that their economic and social future would be generally as favorable as it would have been in the absence of the project. (4) People affected should be informed fully and consulted on resettlement and compensation options.


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(5) Existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible, and resettlers should be integrated economically and socially into host communities. (6) The absence of a formal legal title to land by some affected groups should not be a bar to compensation; particular attention should be paid to households headed by women and other vulnerable groups, such as indigenous peoples and ethnic minorities, and appropriate assistance provided to help them improve their status. (7) As far as possible, involuntary resettlement should be conceived and executed as a part of the project. (8) ADB policy states that special attention will focus on the needs of the poorest households, female-headed households, and other social groups. These vulnerable groups will be assisted to improve their status.

C. Compensation Standards 1. Compensation Standards for Land Acquisition

a. Permanent Land Acquisition 74. According to official data from Jingyuan County Government, it could be calculated the average annual output value of wheat in Jingyuan County, which is the main cultivated dry land farm product in the affected areas, from 2005 to 2007 was CNY 219.98 per mu. According to the survey, among the dry land to be acquired, 34.19% was returned from farming to forestry in 2002. In the total 220.99 mu of land returned to forestry, only 480 fruit trees were planted and so far those trees haven’t born mature fruits. Together with some miscellaneous trees, in total 635 trees will be affected. Since those trees haven’t produced valuable fruits, no annual output value can be calculated for the land returned to forestry. However, compensation for those affected trees will be paid in addition to the compensation for land acquisition. Counting out the land returned to forestry, from 2005 to 2007, the average annual output value of the acquired dry land per mu was CNY 144.77. For details, please refer to the following table.

Table 4-1 Average annual output value of affected dry land from 2005 to 2007

Year Data for cultivated dry land Data for dry land including cultivated land and land returned to forestry

Output per mu Unit price Output value

per mu % of cultivated land in total acquired dry land

Output value per mu

unit Kg/mu CNY/kg CNY/mu % CNY/mu 2005 167 1.25 208.75 65.81% 137.38 2006 153 1.4 214.2 65.81% 140.97 2007 158 1.5 237 65.81% 155.97

On average 219.98 65.81% 144.77 75. Using the estimated average yield, and 14 times of multiples including 10 times for land compensation and 4 times for resettlement subsidy, the calculated compensation for land acquisition in Jingyuan County is 2026.78 CNY/mu.


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Table 4.2 Compensation for land acquisition calculation for the realigned section

Item Unit Jingyuan

Average annual output value CNY/mu 144.77 Multiple of land compensation Times 10 Land compensation standard CNY/mu 1,447.70 Multiple of resettlement subsidy Times 4 Resettlement subsidy standard CNY/mu 579.08 Total CNY/mu 2,026.78 76. In fact, the yield of the land for the two affected villages is lower than the county average since the land is mainly sloping land. In addition, most of the land to be acquired is reforested land containing some intercropping. Therefore, the compensation standard for dry land is set as 2500 CNY/mu, much higher than calculated 2026.78 CNY/mu. Table V.3 Compensation standard for permanent land acquisition No. Category of land Compensation standard (CNY/mu) 1 Dry land 2,500 2 Land for farming returned to forestry 2,500 9 Unused land 1,000

b. Temporary Land Occupation

77. According to the general construction schedule, the realigned section will begin construction in 2008 and will be completed in 2010. Although the compensation will be based on the actual number of years of occupation, the budget is estimated based on 3 years of temporary land occupation by the Project. The compensation standard for temporary land occupation is presented in the following table. Table 4.3 Compensation standard for temporary land occupation

In which

Number Category of land

Total Compensation

standard （）CNY/mu

Annual Land Occupation Fee（）CNY/mu

Total land occupation

compensation （）CNY/mu

Land Reclamation compensation （）CNY/mu

1 Dry land 1,000 250 750 250 2 Wasteland 300 100 300

Note: In average, the temporary land occupation will be about three years. The estimated compensation is based on three years of occupation plus cost for land reclamation. 2. Compensation Standard for Houses and Auxiliaries Demolition 78. The compensation rates adopted for the Project is based on implementation experience in similar expressway projects in Ningxia. In 2004, the average unit cost was CNY220 per m2 for a new brick wood house, and on average CNY150 per m2 for a new brick earth wood house. In recent years, the house construction cost has increased largely. According to the survey and analysis, the present cost increased by about 40% compared with that in 2004. Therefore, the compensation prices for brick wood houses and brick earth wood houses for the realigned section will be increased to CNY350 per m2 and CNY280 per m2 respectively. In consideration of the continuity, CNY220 per m2 for brick wood houses and CNY150 per m2 for brick earth wood houses, which are the


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same as those for the whole expressway, will be paid in cash. The remaining compensation will be paid in kind, such as providing free construction materials or free labor. A complete list of compensation rates for different structure houses and various auxiliaries is provided in Table 4.5.

Table V.5 Compensation Rates for Houses and Auxiliaries

Item Category of asset unit Compensation standard Remarks

Brick wood houses CNY/m2 350 Houses Brick earth wood houses CNY/m2 280 Earth shed CNY/m2 30

Well CNY/each 500 Water storage CNY/each 1000

Tomb CNY/each 500 Vegetable storage CNY/each 500

Gate CNY/each 280 Brick wall CNY/m2 80 Earth wall CNY/m2 20 Brick floor CNY/m2 20

Cement floor CNY/m2 30 Brick shed CNY/m2 50

Caves CNY/each 500 Greenhouse CNY/m2 20 Pumped well CNY/each 4,000 Bio-digester CNY/each 500

Auxiliaries

Cement pool CNY/ m2 30 3. Allowance for Relocation 79. In order to assist the affected persons in relocation and rehabilitation, the Project will provide them various moving allowance for relocation including allowance for transportation expense, and temporary housing allowance during demolition and relocation. The cost for site preparation and on-site infrastructure connection is included in the compensation for housing plots Table 4.6 provides a list of these relevant allowances.

Table 4.6 Allowance for Relocation

Item Description Unit Standard

Transportation expense CNY/household 200 Allowance for movement Allowance for temporary

house during construction CNY/household 200

Other Allowance

Other additional out of pocket expenses, loss of work, medical, schooling.

CNY/household To be determined according to the real situation

4. Compensation for Loss of Scattered Trees 80. The compensation rates for loss of scattered trees will be different according to different types, ages and sizes of trees. Based on the actual condition in project area, the compensation standards is set as shown in the following table.


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Table 4.7 Allowance for Relocation Types Sizes Unit Compensation Rates

ø 10≦ Piece 5 10<ø 30≦ Piece 15

Various Trees ø>30 Piece 35

mature Piece 200 Pine Tree small Piece 50

mature Piece 200 small Piece 50

mature Piece 280 Fruit Trees small Piece 25 Grape Piece 100 Wolfberry Tree Piece 25 Tree roots Piece 20 Nursery Mu 1500

D. Compensation of Other Facilities 81. The compensation of other facilities or infrastructures for the realigned section, ranging from transmission lines to optical cables, is detailed in the following table.

Table 4.8 Compensation estimate for special facilities reconstruction

Item Type Unit Compensation Rates (CNY) 330KV site 500000 110KV site 250000 35KV site 150000 10KV site 50000

10KV (cable) site 100000 low voltage line 1 site 30000 Low voltage line 2 site 50000

Transmission line

Light line site 5000

Cable Line Power cable1 site 30000 Power cable2 site 50000 Optical cable site 200

Pipelines Pipelines site 500 “site” refers to each cross section of transmission lines or cables need to be replaced, which often involves replacement 6 poles or 20-30 meters of transmission lines.

E. Entitlement Matrix 82. All the units and individuals affected by the project are entitled with the following right, compensation and rehabilitation measures as indicated in Table 4.8.


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Table 4.8 Entitlement Matrix of Compensation and Resettlement Policy

Types & Level of Impacts

Entitled Persons Resettlement Policy

Housing & fixed structure demolishing

Relocated Household

1. All demolished houses will be compensated with replacement value without depreciation and the value of the salvageable materials. Salvageable materials of old housing belong to the PAPs, they can use them to build their new houses.

2. Land requisition impacts little on local production, and the PAPs can continue their production activities in their original

villages. Therefore, new housing for the PAPs will be built in their original community (villages). Generally 0.5-1.0km apart from their old housing and close to the land they work on. Moving allowance will be provided for all relocated households.

3. Housing relocation for the realigned section is scattered, thus only 10 households will be relocated in villages along the

expressway. Houses will be removed and built by the PAPs as they wish. PAPs can use the salvageable materials of their old houses. The PAPs will stay in their old houses until the new ones are completed, and should not be forced to move out before the specified relocation deadline. If temporary transfer is required, transfer allowance should be provided to all affected households. Any medical expense for the affected people due to sick or injured during moving process will be covered by the Project Office.

4. The township government and village committees will arrange new sites and house plots in a planned way according to the

regulations. 5. The PAPs will receive 3 months notice before starting housing construction, and will have at least 2-3 months for housing

construction. Timeframe will be discussed with the PAPs. Off peak months will be chosen for construction to avoid affect on farming activities. PAPs will receive compensation for transportation and transitions.

6. Effective measures will be adopted to help vulnerable PAPs (old, disabled, extreme poor, female headed families). For them,

the townships and villages will help them to build new housing and to move in the new house after consulting with them. 7. Housing compensation will be paid to the PAPs before construction of their new houses In case installment is adopted, the

last installment will be paid before completion of the new houses. 8. The PAPs can lodge appeals or grievance free of charge on any aspects relating to the resettlement including compensation.


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Table 4.8 Entitlement Matrix of Compensation and Resettlement Policy (2)

Types of Impacts


Permanent land requisition

Owner (either village collective or contracted household)

1. The Project will pay land compensation for all types of lands acquired for the construction. 2. Beside land compensation, the project will pay resettlement subsidy for all types of productive land areas. 3. In addition, the Project will pay to the PAPs compensation of other attachments and young crops on land requisitioned. 4. The land compensation and resettlement subsidy should be used for restoring the production bases and livelihood for the

affected persons. They could be paid either to the village collectives or affected individuals. For those to be paid to village collectives, land readjustment should be carried out in order to ensure every affected village member has sufficient farmland after land acquisition. The received compensation funds could be used for developing new farmland, upgrading the existing low-yield farmland, intensifying agricultural production, improving irrigation and rural infrastructure, and providing support in the initial resettlement period. They should not be used for other unproductive purposes. For those to be paid directly to affected households, guidance should be provided by county and township governments on how to best use such funds to improve their farming conditions, and engage in various income generation activities.

5. The land compensation will be paid to the affected units prior to land acquisition.

Temporary land occupation

Farming household

1. The project will pay to the PAPs compensation of attachments and young crops on land temporarily occupied. 2. In addition, the project will also pay compensation for annual output loss, which is set at CNY250 per mu for dry land and

CNY100 per mu for wasteland. Based on the construction schedule, the estimated compensation for temporary land occupation is based on three years, plus cost of land reclamation.

3. After the construction is completed, the land occupied by the Project will be restored to farmland and returned to the villages.


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Table 4.8 Entitlement Matrix of Compensation and Resettlement Policy (3)

Types and Level of Impacts


Scattered trees

Owner Cash compensation or transplanting cost will be paid for all trees cut for the project.

Other facilities and special items

Owner 1. The project will pay the Owners compensations of all kinds of special items affected by the project, including telecom line, transmission line, and transmission tower etc. the compensation standard for the special facilities will be determined based on the principles of restoring its original function, original scale and original standard.

2. The project will pay the Owners compensations of all kinds of other rural living and production facilities, the compensation

standards will be determined based on their replacement value.

VI. RESETTLEMENT & REHABILITATION 83. Based on the resettlement schemes proposed by each affected village and present policies, laws and regulations of different levels of governments and the resettlement requirements of ADB, the Resettlement Plan of the realigned section was prepared with the assistance from the design institute and local county and township governments.

A. Target and Task 1. Resettlement Target 84. The overall objective of resettlement and rehabilitation is to ensure that the affected production base will be restored, the affected labor force will be re-employed, and income and livelihood of affected people will be improved or at least restored to their previous levels before resettlement. 85. According to the actual production and living standard among affected villages, and the approved economic and social development plans for the relevant counties, the target of resettlement and rehabilitation is set as follows: (1) The resettler’s production level will be restored after resettlement. (2) The income per capita shall be recovered to the standard before resettlement. (3) The affected public infrastructures, school, hospitals, social welfare level, natural environment and traffic condition etc. shall be improved after resettlement. 2. Resettlement Task 86. About 77 households have partial land loss. Even with an average 47% land loss, this will not significantly affect incomes (about 3% loss) because most households rely on cash income, not farming. Also, 10 households will need house relocation.

B. Resettlement Guideline and Principle 1. Resettlement Guideline 87. The basic resettlement policy of the realigned section is to respect the wishes of affected people and maintain their current production and living traditions. Based on consultation of local affected peoples, the economic rehabilitation will be based on providing most land acquisition compensation in cash to the affected people，and the rest to the affected villages, which could be used either on improving existing farming conditions, such as extend irrigation system) or investing other sideline or non-land based production activities. One principle is first to ensure basic farmland provision among affected village groups and individuals; based on which, other non-land based income generation activities will be encouraged. Since the farmland transfer is relatively common and cheap in the project area, most affected people who want farmland replaced could lease it in local areas. For the remaining fund, the affected people could use them to either improve existing yields by growing cash crops or to engage in other non-land based income generation activities. It is hoped through this combined approach, the income and livelihood of the affected people could be restored or even improved.

2. Resettlement Principle 88. Under such policy, a number of resettlement and rehabilitation principles have been developed for the Project. (1) The resettlement plan will be based on detailed inventory for land acquisition and houses demolition, and adopted compensation standards and subsidies. (2) The resettlement shall be combined with the local development, resource utilization and economic growth as well as environment protection. Considering the local conditions, a practical and feasible resettlement plan should be developed to restore or improve their economic production and create basic conditions for long-term development. (3) The resettlement plan should be based on the principle “Beneficial to the production and convenient for living”. (4) The re-construction standard and scale shall be based with the principle of recovery to the original standard and original scale. Combining the local development, the cost for enlarging the scale, raising standard and future plan shall be solved independently by local government and relevant department. (5) Making overall plans and taking all factors into consideration, correctly handling the relations between the state, collective and individual. (6) Fully utilize local natural resource, build water conservancy facility, develop new farmland, improve land quality, and strengthen agricultural strength and make the resettlers' living standard reach or exceed the original level step by step. (7) The resettlement plans should include provisions to improve the living standards of poor people and other vulnerable people who are adversely affected by the project.

C. Overall Scheme of Resettlement 89. Since the construction of the realigned section will only acquire limited land acquisition and demolition along the road alignment line, it will not have significant negative impacts on production and livelihood for most affected villages. A series of consultation meetings were held among affected villages and townships. According to the resettler's opinion and suggestion, and combined with the actual condition of affected area, the basic rehabilitation scheme was determined as follows: (1) Project affected persons will be resettled within their original community, so that their way of production, living and social relationship can be maintained, which will be beneficial for them to restore or improve their production and income level after resettlement. (2) In order to reduce the impacts on the production and livelihood among resettlers, the demolished houses will be dismantled after the new houses built. (3) The rural relocated households will be resettled in their original villages.

D. Resettlement Carrying Capacity Analysis 1. Natural Condition and Land Resource 90. Since the project affected population will be resettled in their original villages, an analysis of the natural conditions and resources for carrying capacity was conducted. The carrying capacity analysis is based on detailed village to village survey. Based on village level impact survey data a social economic survey among affected villages was carried out. Through collecting local social and economic data for all affected villages, and conducting social economic survey for a number of selected villages, detailed carrying capacity analysis has been carried out, which identified possibilities for farmland readjustment, confirm their current land resources, and obtain basic demographic profiles and agricultural production conditions among these villages. Based on the analysis results, consultation meetings were held in among these selected village, particularly those villages with relatively more farmland to be acquired and more houses to be demolished, in order to obtain suggestions and opinions of PAPs on resettlement and compensation. Following the recommendations and wishes of affected people, that is to maintain the production and living habits of local resettlers, it was determined that all the population affected by the realigned section will be resettled in their original villages. 91. For the affected villages, the main obstacle for their development is poor infrastructure and poor farming condition instead of amount of farmland, which is relative high among affected townships. The compensation received from land acquisition will provide these villages and individuals a good opportunity to improve the infrastructure and public facilities, which will provide a basis for overall improvement of their production and livelihood. 92. After extensive consultation with the administrative villages and their representatives, most compensation will be directly paid to the affected individuals based on amount of their land losses. They could use such funds to increase farming input, improving farming condition, or engaging in other non-land based income generation activities. They include animal husbandry, transport services, commercial services, construction, and small enterprises, which could increase their income and remove their poverty conditions. The others who will lose most of their farmland could also lease farmland from those in their villages. The current rate for leasing similar farmland is 40 CNY/mu per year, much lower than the compensation standards applied to the Expressway. According to the results of the socio-economic sampling survey, the affected people’s income from planting accounts for only 6.46% of their total income. Therefore, the impacts of land on their total income are very small. 2. Basic Infrastructure Conditions for Production and Living a. Traffic Condition 93. The construction of the realigned section will affect the existing traffic patterns so a corresponding engineer measures have been considered by the designers to minimize such impacts, which include: building pedestrian overpasses or underpasses near the main road of the villages, schools, hospitals and other crowded areas in order to ensure safety for people and animals. b. Water Supply Condition 94. The realigned section is located in the mountain area of south-west of Ningxia Hui Autonomous Region. The rural residents are mainly using the water from mountain spring or the

wells, which is quite convenient. For the limited irrigation canals affected by the project, they will be re-connected before construction, and their water supply and irrigation conditions will not be affected. And the water source and water quantity will not be a restricting factor for resettlement and rehabilitation. c. Electric Power Supply Condition 95. All electric power supply facilities affected by the project will be re-constructed based on the original function and scale before the expressway construction, so the electric power supply condition of the residents will not be affected. d. Medical & Education Condition 96. The realigned section will not directly affect any medical, education and other social service facilities. These facilities in affected townships and villages could still be used. For facilities near the expressway, access paths will be constructed by the Project to ensure that no any inconvenience will be created for the affected people. e. Fuel Supply 97. The main fuel supply of the local residents is coal and firewood collected from the nearby hills. For the affected villages, the acquired land areas will account for a small portion of hills or woodland, it will not affect the fuel supply of residents along the alignment. 3. Economic Development Potential of the Affected Area 98. The rural economy in the project area mainly relies on planting. The economic condition is relatively low. However, the total farmland reserve is rich in the area and is considered as great potential for developing animal husbandry activities. In future, with improvement of transportation condition, the resource advantage of local areas should be fully utilized. According to local conditions, various income generation opportunities should be developed by increasing input of science and improving production technical level of the masses in order to promote overall development of agriculture, forestry, sideline activities, as well as industrial, trade and transportation.

E. Resettlement and Rehabilitation Plan 1. Production Rehabilitation Plan 99. During the impact survey and the resettlement planning, consultation meetings have been held by the project office in the relevant counties, townships, administrative villages, and villager groups. The participants included officials from different levels of local government, village leaders and representatives of affected persons. Based on these consultations, indicative resettlement and rehabilitation approaches have been identified for project affected villages. a. Land Adjustment and Development Plan 100. The impacts of land acquisition for the project on affected villages or village groups are different. Therefore, the rehabilitation plans should be based on degree of such impacts, the availability of remaining land resources, and desires of affected persons from village to village. After extensive consultation with affected villages and individuals during social economic survey, it

could be identified to pay most compensation directly to those affected individuals based on compensation rates adopted by the government, and amount of farmland losses. It seems most villagers interviewed prefer this option. This approach will be appropriate if most of affected households will still have sufficient amount of farmland remaining and well developed non-farm income sources, which will ensure their basic grain consumption on the one hand, and additional funds for expanding other non-land based incomes on the other. The compensation funds received could be used to develop other land based or non-land based income generation activities, such as economic crops, animal husbandry and other sideline activities. b. Other Insurance Measures for Economic Rehabilitation 101. In order to ensure that PAPs will restore production and living standard as soon as possible, the following measures will be adopted: a. During the construction of the realigned section, priority will be given for engagement of project affected people and communities in providing unskilled laborers and local construction materials, which could generate significant cash income for the affected people. b. The Project affected people will be given priority if there are any labor export opportunities for the project district and counties. c. Agriculture technical training will be provided to the affected people. Particularly for those who are planning to engage in new income generation activities, such as economic crops, animal husbandry, and other non-land based activities. Relevant personnel from county agriculture technical station will be invited to provide training on farming and cultivation in resettlement areas. Through all these measures, the quality and output of crops as well as number of animals will be raised, which will increase income and revenue for the affected persons. 2. House Relocation Plan a. House Plot Selection and Standard 102. In general, the house demolition and relocation is relatively small for the Project. All relocated 10 households will be resettled within their original village. According to the impact and the actual conditions in each village the affected households will be relocated along existing roads or on some wasteland in their original group. The concerned villages and townships will provide assistance in approving and selecting housing plots for these villages. The cost of the housing plots will be jointly paid by the project owner and the local government. Land Leveling and Facilities Connection Plan

Land Leveling 103. Since house reconstruction will be carried out in a scattered manner, relatively level wasteland will be selected in each village group where geological conditions are suitable. After leveling, new houses could be built. For isolated relocated households, there is no need to have organized site development, and new plot leveling work will be carried out by the resettlers themselves.

Facilities Connection

(i) Water supply 104. According to the existing condition of the resettlers, new water supply facilities will be built to use the mountain spring, or new wells will be built by resettlers themselves. (ii) Electric Power supply 105. Every household will be connected with existing 220V electrical line. (iii)Access road 106. Because the new house plot will be located near the existing road or residential plots, generally, no new access road will need to be constructed. For those resettlers who are currently living in remote mountain areas, the relocation will enable them to move to more accessible locations. (iv) Broadcasting and Television 107. Existing broadcasting utilities in resettlement areas will be used. Television receiving equipment of resettlers can be reinstalled in resettlement areas or use television receiving equipment in resettlement areas. (v) Hospital and School 108. In general, all affected households will be relocated near relatively large village settlements. After relocation, the resettlers can use the existing facilities of school and hospital/clinics, which will be more convenient than they used to. b. New House Construction 109. For house construction, local customs, agricultural requirements and future development needs should be taken into consideration. House construction will be carried out according to the wishes of resettlers. Compensation based on replacement value and amount of demolished spaces will be provided directly to the affected households along with various transfer and rehabilitation assistances. Installment payment of compensation will be managed by the local resettlement offices according to material preparation and house construction schedule.

F. Resettlers’ Administrative Management 110. Since the affected households will be resettled locally and economic rehabilitation will be carried out within the affected villages, the administrative structure will remain the same. In order to further raise the comprehensive quality of resettlers, strengthen their labor skill, and increase their knowledge on agricultural planting and animal husbandry, the Resettlement Office will organize farming technique training with relevant county or city and provide on on-site advice free of charge.

G. Minority People Supporting Arrangement 111. The Project will affect one ethnic nationality Hui, which is the dominant nationality in Guyuan Municipality. According to the socio-economic survey results, all the farmers in Maxipo Village are Han Nationality, and all the farmers in Baijia Village are Hui Nationality. 112. For the Hui people, there is some distinctive customs kept such as religion, festivals, house style. Hui nationalities have lived together with Han nationality for a long period and the national relationship is harmonious. In order to avoid any disruption of their customs and social relationships and not increase distance to farm their fields, all affected persons will be relocated or rehabilitated within their same communities. Since the project impact is primarily land acquisition

and resettlement impact, the measures adopted for compensation and rehabilitation will be essentially the same across all the villages and village groups. However, for those affected Hui minority villages, special attention will be provided in order to consider their unique cultural needs. For example in order to respect their settlement pattern and building style, more freedom will be given to the villages in allocating new housing plots.

H. Vulnerable Groups Supporting Arrangement 113. According to the real situation of the vulnerable groups, a series of special mitigating measures have been designed to help the vulnerable groups. For vulnerable APs affected by house relocation, the measures are aimed to restore or improve their living conditions. For vulnerable APs who are affected by land acquisition and lose working ability, the main measures are reasonable allowances for living and medical care. For vulnerable APs who are affected by land acquisition but have working ability, the main measures are the provision of priority of training and employment (such as outside jobs or work for the Project construction). For the financial assistance, 1% of resettlement cost has been budgeted to support those people who include: (i) Wubao, widows/widowers, physically and mentally handicapped, single female headed households, and (ii) economically at risk due to resettlement – i.e., poverty households, near poor who are seriously affected, and near poor who are in debt. Besides the financial assistance, other measures, such as providing labor during house construction, giving priority to training, etc., will be adopted. For details, please refer to the following table. The exact number of the vulnerable groups will be identifiedwhen the compensation agreements are signed.

Table 5-1 Special Measures for Vulnerable Households

Type of Vulnerable Household

Eligibility Criteria

Entitlements for land loss

(proposed measures)

Entitlements for house loss (proposed measures)

Funding sources

Wubao

Orphans, senior citizens, and disabled people who are not ableto support themselves

Collective retains compensation and provides monthly allowances and medical expenses are free

New housing provided by village

Government financiafund, and village allowance if available1% of resettlement cost if necessary.

Widow/widower Obvious Special skill training Labor for house construction

1% of resettlement cost if necessary

Single female headed household(with dependents)

Widowed, divorced or separated

Aim to make economically productive (e.g., provide child care expenses and training)

Labor for house construction

Government financiafund, and 1% of resettlement cost

Disabled Recognized by the governments Special allowances Labor for house

construction


Elderly persons Men and womenover 70 years Special allowances Labor for house

construction

Village allowance if available, and 1% of resettlement cost if necessary

Absolute poverty households and low income/poor households

Designated by PADO Special allowances Labor for house

construction


Relative poor or/and seriously affected (lose houses or lose > 20% land)

Determined withassistance from PADO

1% fund would be used to provide credit or higher compensation


Other householdswith serious land loss

Any household that loses more than 50% of cultivated land

Priority of training and employment (such as outside jobs or work for the Project construction)will be provided


I. Rehabilitation Plan for Special Facilities

114. The special facilities affected by the realigned section includes: irrigation canals, tractor roads, electric power lines and telecom lines. Early in the primary study stage, a detailed survey on possible impacts to the livelihood of the affected people has been carried out, along with consultations and interviews to get the opinions and suggestions from local governments, relevant departments, and resettlers. These suggestions have been adopted into the project design and resettlement plan, as noted below.

1. Irrigation canal restoration plan 115. Destruction of irrigation canals will be avoided as much as possible during the construction. For those canals that will be affected, a culvert will be built in the roadbed or a parallel open channel will be built in the protection area along the roadbed. This work will be completed before the roadbed construction by the contractors under the Project Office entrustment, so the agricultural production of local residents will not be affected by project construction. 2. Tractor road restoration plan 116. The crossroad will be constructed for the tractor roads according to the actual condition of each section. For pedestrian pathways, overpasses or underpasses will be built to solve traffic problems at two sides. The passageway will be built at the section of with relatively dense traffic of people. The height of pedestrian passageway will be at least 2.2 m, 2.7m for tractor-road passageway, and more than 3.2m for automobile passageway. 3. Electric power line restoration plan 117. According to the design, for those power lines crossing the expressway, the pole height will be increased; for those power lines along the expressway, the affected section will be relocated and rebuilt. The relevant electricity department shall make the plan and reconstruct the power facilities. 4. Telecom line restoration plan 118. For those telecom lines crossing the expressway, the pole height will be increased; for those telecom lines along the expressway, the affected section will be relocated. The relevant functional department shall make the plan and reconstruct the telecom facilities.

VII. RESETTLEMENT COST ESTIMATE

A. Basis and Principles of Cost Estimate

1. Basis of Cost Estimate 119.


(2) Implementation Regulations for Land Administration Law of the Peoples Republic of China

(Promulgated by Order No.256 of the State Council of the Peoples Republic of China on December 27, 1998, and effective as of January 1, 1999);

(3) Land Administration Regulation for Ningxia Hui Autonomous Region (Promulgated on

November 17 2001). (4) Decree on Compensation Rates for Land Acquisition and Resettlement for Western Corridor

– Yinchuan to Wuhan Expressway (Ningxia Section), Ningxia Hui Autonomous Region Government, no. 192, 2001.

(5) ADB Resettlement Policy: Handbook on resettlement: A Guide to Good Practice

2. Compensation Principles 120.

The land acquisition cost and resettlement subsidy compensation will be computed in ⑴accordance with the “Regulation on Land Administration for Ningxia Hui Autonomous Region”, and the young crop compensation will be computed with the relevant rules of Guyuan Municipality.

The compensation of houses and auxiliaries will be based on the replacement cost of local ⑵houses and auxiliaries.

The compensation of special items shall be estimated based on replacement of their original ⑶scale, original standard, and original function.

The compensation standard of scattered trees shall be determined according to its actual value ⑷or actual cost for transplanting.

B. Compensation Cost Estimate 121. The resettlement compensation cost for the realigned section includes land compensation, house and auxiliaries compensation, resettlement transportation subsidy, special facilities reconstruction compensation, other cost, contingency and relevant taxes and fees. 1. Compensation for land acquisition a. Compensation for permanent land acquisitioned 122. According to the calculation, the total compensation for land requisition will be CNY 1,769,345.

b. Compensation for Temporary Land Occupation 123. According to the compensation standard for temporary land occupation, the total compensation for temporary land occupation is estimated at CNY 389,840. 2. Compensation for Houses 124. Based on village investigations which identified 10 affected households, the total compensation for demolished houses and auxiliaries will be CNY 428,596. 3. Compensation for Cutting of Scattered Trees 125. The total compensation for tree and other land attachment compensation fee will be CNY 964,159. 4. Compensation for Special Facilities Reconstruction 126. Based on the field survey, the special facilities or infrastructures affected by the project mainly include power transmission line and telecommunications lines. According to the compensation standard set in chapter 4, the total compensation for special item reconstruction will be 1,552,669 (about 60% of the total compensation for land and house). 5. Other Cost 127. In addition, the resettlement budget includes various other costs, such as resettlement plan and design cost, technical training cost, implementation management cost and resettlement monitoring and evaluation cost. Both training to the affected people and training to resettlement officials will be included in resettlement administration cost. 128. For training to resettlement officials, training seminars will be held in Jingyuan County for the working staff and sponsored by the county resettlement office, under the guidance of EA. The training contents are mainly about resettlement implementation. 129. For training to the affected people, training will be given in relevant villages or townships and sponsored by the county resettlement office, under the guidance of EA. The training contents are mainly about production skill. a. Resettlement planning and monitoring and evaluation cost 130. The resettlement planning and monitoring and evaluation cost is 3 percent of base cost including resettlement planning and both internal and external resettlement monitoring and evaluation. CNY 153,138 is estimated for this cost. b. Cost for supporting Vulnerable Group 131. The cost of supporting the vulnerable group will be calculated by 1 percent of base cost. CNY 51,046 is estimated for this cost. c. Contingency

132. It will be calculated by 10 percent of base cost for the physical contingency, and 5 percent of base cost for the price contingency. d. Implementation management cost 133. It is set at 4 percent of base cost, and about CNY 204,184 is estimated for this cost. It will be used mainly for the resettlement organizations to purchase equipment, housing, wages, official business, travel and administration fee, etc. 6. Taxes 134. According to relevant rules, the following taxes should be paid for the land requisition of the realigned section: a. Cultivated Land Occupation Tax 135. According to the “State Council Notification on Several Policies and Measures regarding Implementation of the Great Western Development” (Promulgated on December 27, 2000 and effective as of January 1, 2001), the arable land occupation tax will be waived for this project. b. Land reclamation fee 136. According to the Land Law, the principle of “reclaiming new land equivalent to the area of land requisitioned”, the Project proponent should reclaim new land in the same size and quality as that requisitioned. In case the unit of land requisition has no means to reclaim new land or the reclaimed land cannot reach the requirement, it should pay land reclamation fee, which should be specially used for this purpose. For this project, based on the quantity of land to be requisitioned and the resettlement plan, CNY 1,615,900 will be paid for this fee. There is possibility that such funds could be used for agricultural development in the project area. 7. Total Resettlement Cost 137. The total compensation cost for the realigned section will be CNY 7,894,568, including taxes. Details are provided in Table 6.1. Table VII.1 Resettlement Cost Estimate for the realigned section

Item Unit standard of

compensation (CNY)

affected amount

Compensation amount (CNY)

A. Basic Fee 5,104,609

(A) Land acquisition 1,769,345

Dry land mu 2500 646.36 1,615,900

Other Land mu 2500 45.99 114,975

Other land mu 1000 38.47 38,470

(B) Temporary land use fee mu 1000 389.84 389,840

(C) House compensation 428,596

Item Unit standard of

compensation (CNY)

affected amount

Compensation amount (CNY)

Brick wood structure square meters 350 980.80 343,280

Brick earth wood structure square meters 280 304.70 85,316

(D) Tree and other land attachment compensation fee 964,159

(E) Infrastructure compensation fee 1,552,669

B. Resettlement planning and monitoring fee 153,138 C. Vulnerable group assistance (1% of basic fee) 51,046

D. Administrative fee (4% of basic fee) 204,184 E. Cultivated land reclamation fee (turn over to the government) 1,615,900

Dry land mu 2500 646.36 1,615,900

F. Land occupation tax mu 0 646.36 0

G. Contingencies 765,691

(A) Physical contingencies (10% of basic fee) 510,461

(B) Price contingencies (5% of basic fee) 255,230

Total 7,894,568

VIII. INSTITUTIONAL ARRANGEMENTS & IMPLEMENTATION SCHEME

A. Institutional Arrangement 1. Establishment of Resettlement Organizations a. Organizations 138. In order to implement the Resettlement Plan in a smooth and effective manner, a resettlement organizational network from higher to lower governmental levels will be established, which will be vested with full responsibility for planning, coordination, implementation and monitoring of resettlement activities. The following institutions are established for or involved in land requisition and resettlement of the project. (1) Project Leading Group for Resettlement (2) Project Resettlement Office (PRO) (3) County Leading Group for Resettlement (4) County Resettlement Office (5) Township Resettlement Work Group (6) Village Committee (7) External Independent Monitoring Organization 139. The Organization Chart is shown in Figure 7.1 b. Responsibilities

Project Leading Group for Resettlement 140. The Project Leading Group for Resettlement consists of leaders from Ningxia Hui Autonomous Region Government, Ningxia Communication Department and Ningxia Land Administrative Bureau, etc. The purpose of establishment of the Group is to strengthen the leadership over the project and to ensure the land requisition and resettlement is carried out smoothly. The Leading Group is responsible for formulating project resettlement policy, coordinating the activities of land requisition and resettlement between resettlement organizations at different levels. Project Resettlement Office (PRO) is subordinate to the Leading Group.

Figure 7.1 Resettlement Organization Chart for the realigned section

Project Management Office (10)

Project Leading Group for Resettlement (7 members)

Project Resettlement Office (PRO) (8 staff)

County Leading Group for Resettlement (9 members)

County (District) Resettlement

Office (3 times 7 staff) External Independent

Monitoring Organization

County Land Management Bureaus

Town(ship) Resettlement Work Groups (18 times (3 staff)

Village Committees (72)

Resettlers

Project Resettlement Office

141. Project Resettlement Office (PRO) will be composed 8 persons, including one women, all with more than four years experience, from the staff of the Project Implementation Office and the Ningxia Land Administrative Bureau. PRO’s main responsibilities are to:

(1) Entrust the design units to define the project affected scope, and entrust the County Resettlement Office to conduct impacts survey and socio-economic survey and maintain up-to-date records;

(2) Assume responsibility for training of key resettlement cadres in the affected counties;

(3) Organize and coordinate preparation and implementation of the RP;

(4) Organize public consultation and disclose resettlement policies;

(5) Assume responsibility for managing and monitoring payment of resettlement compensation

and its use; and sign the agreement with County Resettlement Offices;

(6) Instruct, coordinate and monitor the resettlement implementation progresses performed by County Resettlement Office; and

(7) Take charge of the internal monitoring activities, prepare internal monitoring reports, and

participate in annual audit of fund disbursement and utilization.

County Resettlement Leading Group 142. County Leading Group for Resettlement consists of the responsible government leaders of concerned County Land Management Bureau, Communication Bureau, Finance Bureau, and Construction Bureau, including persons responsible for agriculture, poverty alleviation and minority affairs. The main responsibilities are to strengthen the leadership over the resettlement, to coordinate the working relations of different government departments and the relation between the State, collective and private entities, and to ensure the land acquisition and resettlement is smoothly carried out. 143. According to the consultation with the relevant county governments, the representative of the Women’s Federation cannot be included in the county resettlement leading group since the Women’s Federation is an NGO.

County Resettlement Office 144. County Resettlement Office is composed of specially assigned cadres from County Communication Department who are in charge of resettlement. The County Resettlement Office will conduct the work in coordination with the County Land Management Bureau. Its main responsibilities are:

(1) Coordinate with the Ningxia Highway Design Institute to define the project impact scope and assist the impact survey and social economic survey to the affected areas;

(2) Assist in preparing RP and participate in resettlement implementation;

(3) Organize public consultation and publicize the resettlement policy;

(4) Assist the application and approval procedures for land acquisition and resettlement;

(5) Assume responsibility for management of resettlement funds and supervision of funds

allocation and use;

(6) Assume responsibly for training staff involved in resettlement work in the townships and villages;

(7) Supervise the resettlement conducted by the townships and villages;

(8) Coordinate the work in handling questions and problems encountered during

implementation;

(9) Assist in internal and external monitoring activities; and

(10) Prepare the implementation progress report and report to the project resettlement office.

Township Resettlement Work Group

145. It is led by the relevant responsible leaders in the affected townships, and composed of the staff from township governments, land management office and police station as well as relevant village cadres. The main responsibilities include:

(1) Participate in the project investigation and assist in preparation of the RP;

(2) Organize public consultation and popularize the resettlement policies;

(3) Execute, inspect, monitor and record the resettlement activities within the township;

(4) Arrange approval procedures for new housing plots and construction;

(5) Be responsible for payment and management of compensation funds;

(6) Sign housing removal agreements with resettlers, supervise the land requisition, removal and construction of houses and auxiliaries;

(7) Report to county land administration bureau and resettlement office the progress of land

requisition, housing removal and resettlement; and

(8) Solve problems during RP implementation.

Village Committee 146. The key officials of administrative villages will be involved in resettlement implementation. Their main responsibilities include:

(1) Participate in investigation on social economy and project impact;

(2) Organize public consultation and popularize the resettlement policies;

(3) Select resettlement sites and provide house plots for the resettlers;

(4) Carry out land readjustment and organize activities for economic rehabilitation;

(5) Be responsible for funds management, allocation and use;

(6) Report to the higher authorities about comments and proposals from the resettlers;

(7) Handle grievances, measures for redress and follow-up;

(8) Report the resettlement implementation progress; and

(9) Help vulnerable households in resettlement.

External Independent Monitoring Institution 147. Its main responsibilities are:

(1) Periodically observe every aspect of resettlement schedule and implementation, and furnish the resettlement monitoring and evaluation report to ADB through the Project Resettlement Office every six months. Refer to details in Chapter 10; and

(2) Provide technical advice to Project Resettlement Office and prefecture resettlement offices

during the survey and RP preparation. 2. Working Relations between Organizations 148. In the course of land requisition and resettlement, the resettlement organizations at different levels will sign agreements to define their undertakings and responsibilities. The process of signing agreements is as follows: (1) PRO will sign “Contract of Land Requisition and Resettlement for the realigned section” with Jingyuan County Resettlement Office. (2) PRO will sign “Contract of Independent Resettlement Monitoring and Evaluation for the realigned section” with the external monitoring institution. (3) Each County Resettlement Office will sign ”Contract of Land Requisition and Compensation for the realigned section” and ”Contract of houses relocation and Compensation for the realigned section” with relevant township governments; (4) Each Township Government will sign ”Contract of Land Requisition and Compensation for the realigned section” with each Administrative Village; and sign ”Contract of houses relocation and Compensation for the realigned section” with each affected household. (5) If land compensation is paid directly to the affected people, the payment form will be signed between the county and each household, and there is no special contract between the relevant department and each household. 3. Measures for Enhancing Capacity of Organizations 149. In order to guarantee the resettlement implementation will be carried out smoothly and successfully, the PRO will adopt the following measures to enhance the capacity of the organization at all levels: (1) Optimize the staff structure. The resettlement units at all levels will be manned with administrative and professional personnel who are qualified with professional skills and managerial ability. (2) Organize the key personnel of the units at all levels to participate in training at the Workshop on Resettlement of Projects, so that they have a better understanding of the national resettlement policies and relative requirements of the ADB. (3) Provide sufficient funds and facilities for relevant organizations. (4) Establish a database and ensure the information flow from and to the units at all levels. (5) Strengthen reporting and internal monitoring system, to solve problems quickly.

(6) Develop the mechanism of external monitoring and evaluation, and set up a predicting and alarm system to be utilized by the PRO.

B. Resettlement Implementation Scheme 1. Implementation Procedures a. Land Acquisition and Compensation 150. The land acquisition and compensation will be completed under the coordination of relevant organizations. The typical procedures are as followings: (1) NHSDI is in charge of preparing applicable drawings for land acquisition. The drawings should indicate both the scope and amount of land acquisition, as well as amount of house removal. (2) The Project Owner will apply for land use certificate from planning departments, and apply for approval of land acquisition from Ningxia Land Administration and Resources Bureau. (3) Application approved. (4) The Project Office will consult with the land administrative bureaus (at various levels) on all matters concerned about land acquisition, compensation, signing compensation agreement and process land acquisition procedures. (5) The acquisition scope and amount will be defined on site by staff from county land administration departments and other officials from relevant counties, townships and villages. (6) The relevant county government will sign the “Land Acquisition Agreement” with each relevant town (township) and village. (7) Notification of affected people. (8) Transferring and distributing the compensation fees. (9) Legal formalities transaction. (10) Land occupation by Project Owner. b. Economic Rehabilitation 151. The specific economic rehabilitation measures shall be implemented by the village committee. The basic procedure is as follows: (1) Holding the villagers’ representatives' meeting to study and develop a detailed plan for land reclamation, land adjustment and other economic rehabilitation measures. (2) Publicize the overall plan for land reclamation, land adjustment and other economic rehabilitation measures in order to collect the opinions and comments from all members in the village group.

(3) Implement land adjustment and land reclamation. (4) Farm the cultivated land. c. Houses Demolition and Relocation 152. The procedures for house demolition and relocation will be implemented as follows: (1) The Project Design Unit provides the scope of housing removal. (2) Investigation for housing quantities and qualities will be carried by the County Resettlement Office, assisted by officials from relevant townships and villages. (3) The Project Resettlement Office will be responsible for finalizing compensation standards for houses and auxiliaries after further consultation with local governments and affected persons. The relevant county resettlement offices will prepare compensation agreements for houses relocation after consulting with the relevant townships, villages and individuals. (4) The staff of the Project Resettlement Office will visit every affected village, publicize the relocation compensation scheme, including the quantity, compensation standards and the time schedule for removing and rebuilding houses, and collect comments from the affected individuals. (5) The Project Resettlement Office will designate each township to sign compensation agreement for houses and auxiliaries with the relocated households. (6) Township and village officials will provide the options of new housing plots for the relocated households and collect their opinions. (7) The township resettlement officials will deliver compensation funds and transfer allowances to the relocated households. (8) The relocated households begin the new house construction. (9) Move into the new houses after completion. (10) Removal of the old houses. d. Special Facilities Re-construction 153. The procedures for special facilities re-construction will be implemented as follows: (1) The Project Design Unit provides impact scope of the Project on special facilities. (2) PRO, together with authorities of special facilities, conduct investigation about types and quantities of such facilities. (3) PRO will place relative function departments in charge of special facilities to make restoration plan based on principle of replacement and restoration of existing functions.

(4) PRO consults and agrees on compensation standards and amount for special facilities with relevant function departments, and sign “Compensation Agreement of Special Facilities Restoration” with relevant departments. (5) The relevant departments for special facilities will be asked by PRO to implement reconstruction of special facilities affected by the Project. (6) Complete restoration of special facilities and put into operation. 2. Progress Schedule 154. The schedule for land acquisition and resettlement will be integrated with the schedule of Project construction. The following principles will be observed during resettlement implementation: (1) Housing removal will be carried out in stages in accordance with the Project construction schedule. Prior to the construction of the Project, the removal of houses shall be completed. (2) Housing removal date will be informed to the resettlers at least 3 months in advance; another 3 months will be allocated for resettlers to build new houses before the deadline for old house removal. The PAPs can stay in their old houses until completion of the new one. (3) The relevant resettlement organizations shall fully consult with the PAPs about the house construction schedule; if it is necessary such construction time could be extended. (4) The land acquisition shall be completed before the construction commencement of the sub-projects. (5) Land adjustment and distribution will be completed during cropping intervals. (6) Prior to the land acquisition, the arrangement for labor force shall be completed. (7) Construction of the special facilities shall be completed before the construction of the project or before the completion of old house removal. The duration of disruption of irrigation canals, drainage, communication lines and local roads will be minimized and scheduled to avoid production losses. Otherwise, affected people will be entitled to compensation for temporary losses. The schedule of land acquisition and housing relocation for the realigned section is shown in Table 7.1.

Table 7.1 Progress Schedule for Land Acquisition and Housing Relocation

Items Schedule I. Land acquisition 1. Disclose the resettlement information 2009.1 2. Publicize the compensation standard 2009.1 3. Defining objects affected by the project 2009.1 4. Preparing for and conducting the detailed measurement

survey 2009.3

5. Publicize the survey results and notification of affected 2009.3

people 6. Consultation and determination of compensation

amounts 2009.3～2009.4

7. Payment of Land Compensation ～2009.4 2009.5 8. Go through formalities of land requisition and use of land ～2009.4 2009.12

II. Production restoration 1. Compile the production restoration programs by using

collectively part of land acquisition compensation, and consult with the township, village and affected people

～2009.4 2009.12

2. Implement production restoration programs ～2009.5 2010.12 III. Houses relocation 1. Identify the impacted scope 2009.1 2. Disclose the resettlement information 2009.1 3. Publicize the compensation standard 2009.1 4. Confirmation of household inventory of affected assets 2009.3 5. Publicize the survey results and notification of affected

people 2009.3

6. Sign compensation agreement for houses relocation after consultation with the relevant towns, villages and households

2009.3

7. Choose the new house plot 2009.3～2009.5 8. Land requisition of the new house plot ～2009.3 2009.5 9. Payment compensation fees ～2009.3 2009.5 10. Level the new house plot ～2009.3 2009.5 11. Built new houses ～2009.4 2009.5 12. Removal into the new house Before 2009.5 13. Demolish the old houses Before 2009.5

IV. Restoration of special facilities Before 2009.12 3. Resettlement Fund Allocation Scheme a. Allocation Principle 155. All costs related with the acquisition and removal will be listed in the general project budget. The Owner shall pay the compensation fees for acquisition and removal and other expenditures to affected collectives and individuals through the county resettlement offices. 156. Prior to construction of the new houses, the compensation fees shall paid to the relocated households; if this payment will be provided in installment, the final payment shall be paid prior to the house completion. 157. The compensation fees for land acquisition and other facilities shall be paid to relevant communities and individuals prior to land acquisition. 158. In order to ensure a smooth implementation of the resettlement plan, PRO will set up audit mechanism in the resettlement offices at all levels, so as to guarantee all the money to be paid to the PAPs is paid as specified. Also, the utilization of the collective compensation (rehabilitation expenditures) by the village committees will be subject to annual audit.

b. Departments Responsible for Resettlement Finances 159. The Project Resettlement Office and County Resettlement Office will be the responsible for managing land compensation funds. 160. For houses removal compensations, the responsible agencies will be the Project Resettlement Office, County and City Resettlement Office, Township Government. 161. In order to guarantee compensation funds to be timely transferred and be properly used, the resettlement compensation funds shall be transferred from higher level to lower level; each department shall strictly implement the stipulations in finance accounting and audit system. The use and transfer status of compensation funds will be periodically checked and reported. If unexpected event takes place, the adjustment plan and remedial measures will be submitted without delay. The cash flow is shown in Figure 7-1. c. Fund Allocation Flows 162. Based on the compensation policy and standards stipulated in the resettlement plan, the Project Resettlement Office shall sign “Houses Removal Agreement” and “Land Acquisition Agreement” with County Resettlement Office. 163. The County Resettlement Office (on behalf of the Project Resettlement Office) shall sign the compensation agreement for land acquisition with the Township, Village Committees concerned. 164. In accordance with the contents, quantities and time stipulated in the house relocation compensation agreement, the compensation fee will be transferred by the Project Resettlement Office through the bank to the County Resettlement Office. Then the County Resettlement Office will distribute the compensation funds to affected villages and households with the assistance of township governments. 165. According to the related policy stipulations, the land compensation fee and subsidy will be paid by the Project Office to the County Resettlement Office through Ningxia Land Administration Department and Resources Bureau. The County Resettlement Office will distribute funds to affected villages, village groups and affected individuals with assistance of township governments. 166. The flows of compensation funds are presented in Figure 7.2

Figure 7.2 Fund Flow Chart

Land compensation → PRO to NLAD

→ County RO → → AV

Resettlement subsidy →

PRO to NLAD

→ County RO → → AV

Young crop compensation →

PRO to NLAD

→ County RO → → Individuals

Houses and auxiliaries compensation →

PRO to NLAD

→ County

RO → → Individuals

Compensation for temporary land occupation →

PRO to NLAD

→ County


Compensation for material transportation →

PRO to NLAD

→ County


Compensation for material loss during transportation →

PRO to NLAD

→ County


Compensation for work loss during relocation →

PRO to NLAD

→ County


Compensation for scatter trees cut →

PRO to NLAD

→ County


Compensation for new plot leveling and facilities linking →

PRO to NLAD

→ County


Special facilities compensation →

PRO

→ Relevant departments

Resettlement design fee →

PRO

- Design unit

Technique training cost → PRO to NLAD → → County RO → Technique training unit

M&E cost → PRO → M&E unit

Implementation management fee → PRO → Resettlement implementation institute

IX. PARTICIPATION, DISCLOSURE AND GRIEVANCE PROCEDURE

A. Public Participation 167. In the process of formulating resettlement policy, developing the RP and implementing RP, the relevant authorities have paid and will pay special attention to the participation and consultation of the PAPs, and solicit opinions widely from them. During feasibility study, the PRO has solicited opinions and proposals several times on resettlement approach, proposed road alignment, selection of pedestrian pathways from the government, people’s congress, People’s Political Consultative Conference, social bodies, representatives of the mass of prefectures (cities), counties (cities), relevant townships. For preparation of the RP, the PRO has once again solicited the opinions from local governments at all levels and the representatives of PAPs on the resettlement policy, compensation standards, and rehabilitation measures. With cooperation of local governments at all levels, this RP is developed. In the implementation stage, the resettlement offices at all levels will further encourage the public participation in the resettlement and rehabilitation. 1. Participation in Resettlement Preparation 168. Early in the pre-feasibility study stage, the project office actively encouraged the public participation in the work. 169. The Project Management Office has consulted extensively with local governments at all levels and relevant authorities responsible for planning, communication, post and telecommunication, land administration on the project locations, site alternatives and expressway line route, and interchange locations. All alternatives were put forward with cooperation and confirmation of local governments. 170. In order to make publicity of the project and collect comments from cadres and public on the project construction and resettlement, the PMO held meetings, participated by the residents and cadres from counties (cities), town(ship), villages and villager groups. At the meetings, the necessity of construction of the project and resettlement policies were made known to all involved. Project impacts, land requisition, compensation regulations and resettlement options were discussed at some length. 2. Participation in RP Preparation 171. During preparation of the RP, the local governments at all levels and resettlers were involved in the following activities. (1) County and township level: in December 2007, 3 meetings with different topics were held at the county and town levels, and nearly 20 persons participated including the responsible government leaders of county, township and relevant departments. The resettlement offices held workshops participated by the local cadres at all levels to discuss matters of land acquisition and resettlement plan, resettlement policies and preliminary resettlement plan, etc. (2) Village and villager group level: in December 2007, 2 meetings with different items were held at the village and villager group levels, and more than 10 persons participated. The participants included village officials and affected villagers. The focus of consultation was mainly to collect comments on project construction, land acquisition, resettlement compensation, and so on.

(3) In December 2007, the project survey team made a social-economic and opinion survey of 10 households among 4 village groups in 2 villages in order to have a basic social economic profile of affected people, and obtain their basic comments on construction and resettlement. According to the survey results, most of the relocated households preferred to be relocated in their original communities. For those affected by land acquisition, most affected people preferred to get cash compensation rather than to go through village wide land readjustment; and nearly all of the resettlers surveyed were very concerned regarding the compensation standards and when, and where they can get their compensation; and they also wished their compensation will not be intercepted and be fully paid to their hand. Such concerns were all considered during the process of resettlement planning. For example, direct cash compensation was included as one of the main methods of economic rehabilitation for those affected people. To reduce the fear that compensation could not be fully delivered, EA has agreed to have each county resettlement office pay compensation directly to the affected households who will be affected by housing demolition, and villages, village groups or households directly for those affected by land acquisition. The township governments will not be directly involved in delivering payment, instead, they will be involved in providing assistance to the county resettlement offices. 3. Participation during Resettlement Implementation 172. All resettlers will be encouraged to participate in the whole process of implementation of the RP. a. Participation in House Reconstruction

Housing Compensation Criteria 173. The compensation criteria for housing will directly affect the interests of the resettlers. Before the houses are relocated, the relevant resettlement authority will consult and sign an agreement with the resettlers on the compensation criteria for the houses. The consultation results will be declared publicly before the agreements are signed, so as to put the resettlement under public supervision.

Resettlement Host Sites and House Reconstruction 174. At the RP preparation stage, the relevant authority carried out survey on the resettlement host sites and the way of house reconstruction. According to the survey, most of the affected households are willing to have their houses relocated in their own groups and to rebuild houses by themselves. The local governments at all levels will provide assistance at different stages for house relocation.

Disposal of Old Houses 175. All the old houses to be demolished will be compensated at replacement cost without depreciation. Within a specified time period, resettlers can, on their will, demolish their old houses first and then rebuild the new houses or vice-versa. The salvageable material from the old houses can be used by resettlers themselves without deduction from compensation. b. Participation in Production Rehabilitation

176. All affected individuals in the affected village groups (including those indirectly affected) will participate in the land re-adjustment and redistribution process.

Participation in Using Land Compensation 177. According to the ownership in affected area, the land compensation will be paid to the villager group and shall not be carved up or used for other purpose. The compensation will be used in a planned way and for specific items planned. The use of the money will be approved by the villager congress and under the supervision/ (with the participation) of the villager representatives.

Participation in Project Construction 178. The project construction will cause certain impacts on the local community. In order to ensure the PAPs benefit from the project construction, the local people will be encouraged to take part in the construction, and favorable conditions will be created to use local materials and local labor force.

B. Disclosure of Resettlement Policy and Resettlement Plan 179. In order to inform the affected people about the content of RP, the resettlement leading groups and the resettlement offices at all levels will disclose the resettlement policies and encourage the public participation by the following ways: 1. Publicize the Impact Survey Results 180. The inventory of all types of impacts will be publicized to the affected people and communities. Such disclosure will be carried out to all affected people before the payment of compensation is made. According to the general Project schedule, this work will be carried out in March 2009. 2. Clarify the Compensation Policies 181. Following the new Land Administration Law, prior to land acquisition, the affected villages should be informed about the compensation scheme, which includes compensation standards for both land acquisition and house demolition. It is agreed that all compensation standards will be publicized prior to the implementation of land acquisition and resettlement. According to the general Project schedule, this work has been carried out in January 2009. 3. Prepare and Distribute Resettlement Information Booklet 182. The Project Resettlement Office has drafted a detailed resettlement information booklet to ensure the local government and people in the affected areas know the details of the resettlement plan and compensation regulations and standards (see Annex 1 for details). The resettlement information booklet covers main contents of resettlement plan, compensation criteria and resettlement policy, the entitlements and grievance procedures. The brochure will be distributed to each of resettlement households within the project area as soon as the booklet is approved. According to the general Project schedule, the resettlement information has been disclosed to the APsin January 2009. Relevant land acquisition and relocation announcements will also be issued through local newspapers, radio and television broadcasting or posted bulletins to propagate resettlement policy, compensation standard and complaint channel in the towns and villages affected using easy language that resettlers readily comprehend. The Resettlement Plan document

will also be available in county and township offices, and put in local libraries to facilitate the resettlers to read. This will be done as soon as the Ningxia Communication Department approves the RP. 4. Holding Meetings 183. Public meetings will be held to explain relevant policies, laws and rules and compensation criteria in detail so that the PAPs can know these early before the implementation of the land acquisition and resettlement.

C. Grievance and Appeal 184. The public participation is always encouraged in the process of compiling and implementing of the RP. There will be some unforeseeable problems occurring in the process. In order to solve problems effectively and ensure the project construction and land requisition is carried out successfully, a transparent and effective grievance and appeal channel has been set up. The basic procedures for grievance include the following steps. Stage 1: 185. If any resettler is aggrieved by any aspect of the resettlement, he/she can state their grievance and appeal to the village committee or the township (town) resettlement office in oral or in written form. If an oral appeal is made, the village will record it on paper and process it. Village committee or township (town) resettlement office will make decision on or resolve it in two weeks. Stage 2: 186. If the aggrieved resettler is not satisfied with the decision in stage 1, he/she can appeal to the county (city) resettlement office or the Leading Group after receiving the decision; the county (city) resettlement office will reach a decision in two weeks. Stage 3: 187. If the aggrieved resettler is still not satisfied with the decision of the county (city) resettlement office, he/she will appeal to the Project Resettlement Office after receiving the decision. The Project Resettlement Office will reach a decision in two weeks. Stage 4: 188. If the PAP is still dissatisfied with the decision of the PRO, he/she will appeal to the civil division of a people’s court according to the civil procedural law after receiving the decision of from PRO. 189. The resettlers can appeal on any aspect of resettlement, including compensation criteria and price. 190. The resettlers are apprised of their rights for lodging appeals during participation in the public meetings and by receiving resettlement information booklet. At the same time, the grievance and appeal process will be publicized among the PAPs through media. The relevant authorities will sort out the opinions and proposals of the PAPs and the resettlement offices at all levels will process the information in a timely and effective manner. 191. The organizations will accept the grievance and appeals of the PAPs free of charge, and the reasonable expenses incurred there from will be paid by the PRO from the Project’s contingency fund.

X. MONITORING & EVALUATION 192. In order to guarantee that the RP can be smoothly implemented and the resettlement target suitably realized, the follow-on fact finding and monitoring will be carried out throughout the whole process. Monitoring on the resettlement will be divided into two parts, i.e., internal monitoring (by the resettlement offices) and the external independent monitoring.

A. Internal Monitoring 1. Target and Task 193. The target of internal monitoring is to maintain supervision responsibility of the resettlement organs as specified in the RP during implementation, and ensure that the project can be constructed smoothly and the resettlers’ legal rights will not be impaired. The auditing department of the provincial government will independently exercise the auditing monitoring function over concerning units under its jurisdiction in accordance with the laws and regulations. The superior units assume the responsibilities for monitoring their subordinates so that the RP principle and schedule can be followed. 2. Institution and Staff 194. The internal monitoring for land acquisition and resettlement will be held by the project resettlement office, and be performed by three country resettlement offices, townships and villages. To make the internal monitoring effective, full-time professionals will be assigned within all the resettlement offices at all levels. All of them have participated in the compilation and implementation of the RP, and they will carry out the internal monitoring control in the processes of the work. 3. Monitoring Contents 195. The main contents to be monitored for internal monitoring are shown as below:

(1) Allocation and utilization of the resettlement compensation (2) Selection and allocation of new house plots (3) Rebuilding of private houses (4) Support to vulnerable groups (5) Employment of the PAPs (6) Quality and quantity of new developed land (7) Adjustment and distribution of the land (8) Transfer of the land subsidy fees (9) Relocation of private shops (If any affected)

(10) Restoration of special facilities (11) Scheduling of the work above mentioned (12) Implementation of the policies in RP (13) Public participation and consultation during implementation (14) Grievances and appeals, the process and the results (15) Staffing, training, work schedule and working effectiveness of resettlement offices at

all levels.

4. Monitoring Procedures 196. The PRO has developed an internal monitoring framework to supervise the resettlement activities, and has established a database for the land requisition, housing relocation and resettlement, and will monitor the whole process of the resettlement. 197. During the implementation stage, the resettlement offices at all levels will establish relevant sections of the database and update them along with the resettlement progress for planning the resettlement work in their own regions. They will also timely transfer the on-going activity records and report the resettlement implementation progress to the resettlement office at above level so that a continuous monitoring can be realized. 198. In the above internal monitoring system, a set of formats of information lists has been drawn up so as to realize the continuous message flows from the village to the project resettlement office. The county(city) resettlement offices and town(ship) resettlement groups are important chains in the internal monitoring system. 199. The resettlement work will be periodically checked and inspected by the PRO. It will prepare a semi-annual summary progress report which will be submitted to ADB.

5. Reporting 200. After starting of the resettlement implementation, resettlement progress reports will be submitted at least once every three months from the lower resettlement offices to the higher resettlement offices; According to the reports submitted from resettlement offices at all levels, and prior to every April 30 and October 31, the PRO will submit a report to ADB indicating the resettlement progress.

B. External Resettlement Monitoring and Evaluation 1. Target and Tasks 201. The external monitoring and evaluation (M&E) undertaken by an institution independent to the resettlement execution institutions is to monitor and evaluate whether the target of the land requisition, resettlement and relocation activities are realized. Through the process, evaluation opinions and proposals will be put forward on the resettlement, housing relocation and restoration of the resettler’s living standards, and to provide prediction and alarm system to the project management, and reflecting channel to the resettlers.

202. The external monitoring institution will report independently to the Project Leading Group for Resettlement and the Project Resettlement Office. It will conduct follow-up investigation, monitoring and evaluation of the resettlement activities according to the RP and provide advice for decision-making and mitigation measures. 2. Institution and Staff 203. The external monitoring institution will provide technical assistance to the PRO and conduct survey of resettlement and living standards of the PAPs as well as all basic monitoring work. The institute will prepare annual and semi-annual report for submission to PRO and ADB. 3. Main Indicators to be Monitored and Evaluated a. Main Indicators for Monitoring 204. (1) Progress: including preparation, implementation of land requisition, housing relocation and resettlement. (2) Quality: including civil construction quality and degree of resettlers’ satisfaction. (3) Investment: including allocation and use of the funds. b. Main Indicators for Evaluation 205. (1) Economic conditions: household economic development before and after resettlement, including assets, production materials, subsistence materials, income, etc. (2) Environmental conditions: living environment before and after resettlement, including traffic, culture and education, sanitation, commercial service facilities, etc. (3) Employment: change in employment, including employment rate, assistance to the different PAPs, especially the vulnerable PAPs, such as impoverished families and minority families, etc. (5) Development in community: local economy in resettlement host sites, environmental development, neighborhood relation, and public opinions after resettlement. (6) Conditions of Vulnerable Groups and Minorities: including before and after situations of ethnic minorities, poor households, disabled, elderly, children, women, etc. 4. Monitoring and Evaluation Measures 206. Monitoring and evaluation will be performed on the basis of the survey data provided by the survey design institution and resettlement implementation institutions. With an overall understanding of the situation, the evaluation will be performed by sample survey, key informant interviews and rapid rural appraisal techniques. Typical samples, including resettled households, affected villages and Townships will be selected to establish evaluation index system for different types of PAPs. Experienced experts will be invited to decide in a back-to-back way the weights for different indexes. Referring to the updated research output on living quality both in China and abroad, the indexes will be non-dimensionally treated, and the survey results will be analyzed and

the computation results evaluated and compared. In addition to typical samples, there will also be focused investigation of vulnerable groups. 207. Generally, the external monitoring and evaluation institution will carry out the following work. a. Survey of resettlers’ living standards 208. A base-line survey will be conducted for this project, including the collection of selected samples of the base-line living standards of the resettlers. (The preliminary samples will be randomly collected). The living standard will be investigated once a year to monitor the variation in the resettlers’ living standards. The necessary data can be obtained by periodical survey, random interview and site visit, based on which statistical analysis and evaluation are performed. There will also be targeted survey of vulnerable groups. 209. The survey comprises various indicators of living standards. some of the indicators will be used for weighing the dynamic variation of living standards before and after the land requisition and resettlement. The selected indicators will be checked to see whether they are reasonable in reflecting the actual production and living levels in the base-line survey and are subject to modification according to the actual conditions, so as to guarantee the message obtained reflects the quality and quantity of the real situation. 210. Sampling scale: resettlers: 15% (of which 10% is targeted at vulnerable groups), sample villages by land requisition: 15%. b. Holding Public Consultation 211. The independent monitoring and evaluation institution will participate in the public consultation conferences held by the villages and townships. By this method, the institution can evaluate the effectiveness the public participation and the cooperative attitude of the resettlers towards the RP implementation. Such activities will be conducted during and after the resettlement implementation. c. Gathering Resettlers’ opinions 212. The independent monitoring and evaluation institution will often interview the township resettlement offices and villagers to know the opinions collected from the resettlers and interview the resettlers who have grievances. The institution will report the opinions and suggestions from affected individuals and collectives to the Project Resettlement Office, and provide advice for improvement, so that the resettlement implementation can be more smooth and effective. d. Other responsibilities 213. The independent monitoring and evaluation institution has provided advice to the project resettlement office in preparation of the RP, and will monitor the following activities in the process of implementation. (1) Selection of resettlement sites, (2) Construction of houses,

(3) Production arrangement and rehabilitation (and use of funds), (4) Support to the vulnerable groups, (5) Relocation of private-owned shops, (6) Re-construction of special facilities, (7) Payment and amount of the compensation, (8) Resettlers’ transfer, (9) Employment of laborers, (10) Training, (11) Schedule of the items above mentioned, (12) Organizational efficiency for the resettlement, (13) Use of compensation of the collective-owned land (14) Resettlers’ incomes, expenditures, and assets (15) Employment of the surplus laborers and income increase of them. EA does not have the right to employ the surplus laborers, but will suggest the civil construction contractors to give the priority for hiring the project affected people. 5. Working Processes 214. (1) Preparation of monitoring and evaluating outline, (2) Identify computer software for monitoring and evaluating of the resettlement, (3) Drafting the investigation outline, survey forms, and record cards for sample villages and sample households, (4) Design of the village and household social-economic and opinion surveys, (5) Carry out base-line surveys, (6) Establishing the information system for monitoring and evaluation (7) Investigation for monitoring — Community socio-economic survey — Resettlement implementation institutions — Village survey — Household survey — Survey for other affected objects (8) Sorting of monitoring information and establishment of database

(9) Comparison analysis (10) Preparing a monitoring and evaluation report each half a year.

C. Reporting 1. Internal Monitoring Progress Report a. Periodicity 215. After starting of the resettlement implementation, resettlement progress reports will be submitted at least once every six months from the lower resettlement offices to the higher resettlement offices; According to the reports submitted from resettlement offices at all levels, and prior to every April 30 and October 31, the PRO will submit a report every six month to ADB indicating the resettlement progress. b. Format and Contents 216. The format of the resettlement progress report by the PRO will be prepared to meet the requirements of the ADB. The format of the report usually comprises of two parts: a) the context describing in detail the resettlement progress and payment and use of compensation, the progress, problems and difficulties met in the implementation, and the corresponding resolutions; and b) forms and lists mainly showing statistical data of previous six months, which reflect the progress by comparison of the actual and planned land requisition, house removal, reconstruction and use of compensation. Some formats are provided in Table and Table

Table 9.1 Progress Report of Land Requisition and Resettlement Department: ________________________________________________ Deadline for Reporting Contents: Date Month Year Fill-up Date: Date Month Year

Items Unit Planned amount

Completed this period

Cumulative total

Proportion Completed

Fund allocation Private houses rebuilding PAPs moved to new housing Old houses demolition Reconstructed public buildings Electric line reconstruction Communication lines recoverin Land requisition Land readjustment

Reporter: Signature (Person-in-charge)：： Official seal

Table 9.2 Implementation Progress of Resettlement Fund Usage County (City) Township__________________________________

Data up to: Date Month Year Fill-up Date : Date Month Year

Affected unit Description Unit/ Quantity

Investment ￥required ( )

Compensation /Subsidy ￥received ( )

Village 1 Village 2

Reporter: Signature(person-in- ：charge): Official seal Notes: “Description” will be filled with such as construction of irrigation facilities (canal (m), pump station (no.)), domestic animals farming (such as sheep, chickens, ducks ), land improvement (dry land to paddy field (mu)), establishing of enterprises and labor force employment, etc.). 2. Independent M&E Report 217. Monitoring and Evaluation institution will report on the work that they undertake within one month after completion of the work. When submitting the resettlement progress report to ADB, PMO will attach the resettlement M&E report received from Monitoring and Evaluation institution annually. a. Periodicity 218. In accordance with the ADB’s requirement, after commencement of the resettlement, the monitoring and evaluation investigations will be carried out once a year, although during resettlement implementation, external monitoring and reporting will be carried twice a year. The work for independent monitoring and evaluation will be conducted according to the implementation progress. The M&E outline will be submitted. Selection of the samples and collection of base-line data for the samples will be completed, and the information systems for the M&E will be established. The M&E investigation and report will be completed and submitted to ADB in time. b. Contents 219.

(1) Summary of the resettlement base-line survey (annexed to report) (2) Land requisition, housing relocation and resettlement schedule (3) Production restoration and rehabilitation (4) Housing demolition, relocation and reconstruction (5) Resettlers’ living standards (6) Availability and utilization of the resettlement funds (7) Evaluation of operation and efficiency of the resettlement implementation

institutions (8) Support to vulnerable group (9) Problems and recommendations (10) Follow-up on previous problems and mitigation actions

(11) A 3-5 page executive summary.

Annex 1: Resettlement Information Booklet

1. Project Background The Tongxin to Yanchuanzi Expressway with a total length of 182 km is part of the main trunk road towards the west part of the country, from Yinchuan City (Ningxia) to Fuzhou City. Part of sections of Yin-Fu Road will also connect with other key national key trunk roads, including Qingdao to Hongqilapu, and Shanghai to Wuwei. The proposed expressway is also important part of “three vertical and six cross” road network in Ningxia. The completion of this expressway, together with the existing GZ25, will form the main north to south highway framework in Ningxia. It will improve road network in both Ningxia region and Guyuan Municipality areas, which will play an important role to promote regional economy and improve current backward conditions in the project areas.

The Resettlement Plan for the whole Tongxin to Yanchuanzi Expressway was finished in November 2002. According to the new planning of Ningxia Government, an important reservoir for the southern part of Ningxia will be located in the current alignment area of the Expressway section to be constructed. About 13-km road section within Shizi-Yanchuanzi Section will be realigned. This section starts from Maxipo Village, Jingyuan County (K191+843.66), and ends at Baijia Village, Jingyuan County (K202+571.972). The length of the realigned section is 10.73 km, which is 1.99 km shorter than the original length.

2. Project Affected Area and Inventory The county and townships included in the RP study were those where either structures or land will be taken. The affected county is Jingyuan County. Within the county, there are 2 townships affected, including 2 administrative villages and 4 village groups. According to the survey, 730.82 mu land will be permanently acquired by the Project, including 88.44 percent farmland. During project construction, another 390 mu land areas will be occupied temporarily. Along with land acquisition, a total of 1285.5 square meters of houses will be demolished, including 76.3 percent brick wood stricture, and 23.7 percent of brick earth wood structures. The households affected by land acquisition and house demolition are 77.

3. Resettlement Planning The resettlement planning of the project is organized by and under the leadership of the Project Owner and local government at all levels. Based on the detailed impact survey and extensive consultation among affected villagers, a resettlement plan was prepared. Following the principle of “resettlement as development”, the RP adopts a land-based and agricultural based rehabilitation strategy. By cash compensation and developing collective economy, the RP will provide a basic production base for both short term livelihood security and long-term development potential. It is believed that after resettlement and rehabilitation together with the local economic development brought by the Project, the living standard of the resettlers will reach or exceed that before resettlement.

4. Policy Basis and Objective of Resettlement Plan

4.1 Policy Basis


(2) Implementation Regulations for Land Administration Law of the Peoples Republic of

China (Promulgated by Order No.256 of the State Council of the Peoples Republic of China on December 27, 1998, and effective as of January 1, 1999);

(3) Land Administration Regulation for Ningxia Hui Autonomous Region (Promulgated on

November 17 2001). (4) Decree on Compensation Rates for Land Acquisition and Resettlement for Western

Corridor – Yinchuan to Wuhan Expressway (Ningxia Section), Ningxia Hui Autonomous Region Government, no. 192, 2001.

(5) ADB Resettlement Policy: Handbook on resettlement: A Guide to Good Practice

4.2 Policy Objectives

(1) Adopting engineering, technological, economical measures to avoid and reduce land requisition and house relocation; however, when land requisition and house relocation is unavoidable, effective measures should be taken to reduce impacts on production activities and living conditions of local residents.

(2) In the preparation stage of the project, social economic investigation has been conducted

and relative resettlement plans have been prepared. (3) Resettlement plan should be based on the affected property indexes and compensation

standards to improve, and at least to restore the original living standard of resettlers. (4) Promoting developmental resettlement. Resettlement in rural area should be land based,

supported by advanced local second and tertiary industries to seek more employment. (5) Encouraging PAPs to take part in the resettlement planning. (6) Relocated population will be first resettled within their own communities (7) Resettlement and original residents in the resettlement area will benefit from the project.

4.3. Compensation Standards Compensation standards for items affected by the realigned section are shown in Table 1 to Table 6. The compensation will be paid in cash or in kind according to the real situation. Table 1 Compensation standard for permanent land acquisition

No. Category of land Compensation standard (CNY/mu) 1 Dry land 2,500 2 Land for farming returned to forestry 2,500 9 Unused land 1,000

Table 2 Compensation Standard for Temporary Land Occupation*

Number Category of land

Total Compensation

standard (CNY/mu)

Young crop compensation

(CNY/mu)

Compensation for yearly output

value losing (CNY/mu)

Land Reclamation

compensation (CNY/mu)

1 Dry land 1000 250 750 250 2 Wasteland 300 100 300

Note: In average, the temporary land occupation will be about three years. The estimated compensation is based on three years of occupation plus cost for land reclamation.

Table 3 Compensation Rates for Houses and Auxiliaries

Item Category of asset Unit Compensation standard Remarks

Brick wood houses CNY/m2 350 Houses Brick earth wood houses CNY/m2 280

Earth shed CNY/m2 30 Well CNY/each 500

Water storage CNY/each 1500 Tomb CNY/each 500

Vegetable storage CNY/each 500 Gate CNY/each

Brick wall CNY/m2 80 Earth wall CNY/m2 20 Brick floor CNY/m2 20

Cement floor CNY/m2 30 Brick shed CNY/m2 50

Caves CNY/each 500 Greenhouse CNY/m2 20 Pumped well CNY/each 4,000 Bio-digester CNY/each 500

Auxiliaries

Cement pool CNY/ m2 30

Table 4 List Allowance for Relocation and Rehabilitation

Item Description Unit Standard Transportation expense

CNY/household 200 Allowance

for movement

Allowance for temporary house during construction

CNY/household 200

Land leveling and facilities connection

CNY/household 1,000

Table 5 Compensation for Loss of Scattered Trees

Types Sizes Unit Compensation Rates

ø 10≦ Piece 5 10<ø 30≦ Piece 15

Various Trees ø>30 Piece 35

mature Piece 200 Pine Tree small Piece 50

mature Piece 200 small Piece 50

mature Piece 280 Fruit Trees small Piece 25 Grape Piece 100 Wolfberry Tree Piece 25 Tree roots Piece 20 Nursery Mu 1500

Table 6 Compensation estimate for special facilities reconstruction

Item Type Unit Compensation Rates (CNY) 330KV Site 500000 110KV Site 250000 35KV Site 150000 10KV Site 50000

10KV (cable) Site 100000 low voltage line 1 Site 30000 Low voltage line 2 Site 50000

Transmission line

Light line Site 5000

Cable Line Power cable1 Site 30000 Power cable2 Site 50000 Optical cable Site 200

Pipelines Pipelines Site 500

4.4. Compensation Distribution

⑴ The Owner shall pay the compensation fees for acquisition and removal and other expenditures to affected collectives and individuals through the county resettlement offices. ⑵ Prior to construction of the new houses, the compensation fees shall paid to the relocated households; if this payment will be provided in installment, the final payment shall be paid prior to the houses completion. ⑶ The compensation fees for land acquisition and other facilities shall be paid to relevant communities and individuals before the acquisition. 4.5. Rehabilitation Strategy. For land acquisition impacts, economic rehabilitation will be carried out within the village. The measures to be adopted will include paying cash compensation to the affected farmers, improving infrastructure, and developing collective economy. For relocated households, they will be resettled within the village. 5. Organizations responsible for resettlement In order to implement the RP in a smooth and effective manner, a resettlement organizational network from higher to lower governmental levels will be established, which will be vested with responsibility for planning, coordination, implementation and monitoring of resettlement activities. The following institutions are established for or involved in land requisition and resettlement of the project.

⑴ Project Leading Group for Resettlement ⑵ Project Resettlement Office (PRO)

⑶ County (District) Leading Group for Resettlement ⑷ County (District) Resettlement Office ⑸ Town(ship) Resettlement Work Group ⑹ Village Committee ⑺ External Independent Monitoring Organization 6. Grievance Procedures The public participation is always encouraged in the process of compiling and implementing of the RP. There will be some unforeseeable problems occurring in the process. In order to solve problems effectively and ensure the project construction and land requisition to be carried out successfully, a transparent and effective appeal channel has been set up. The basic procedures for grievance include the following steps. Stage 1: If any resettler is aggrieved by any aspect of the resettlement, he/she can appeal to the village committee and the township (town) resettlement office in oral or in written form. If an oral appeal is made, the village will record it on paper and process it. Village committee or township (town) resettlement office will make decision on or resolve it in two weeks. Stage 2: If the aggrieved resettler is not satisfied with the decision in stage 1, he/she can appeal to the county (city) resettlement office or the Leading Group after receiving the decision; the county (city) resettlement office will reach a decision in two weeks.

Stage 3: If the aggrieved resettler is still not satisfied with the decision of the county (city) resettlement office, he/she will appeal to PRO after receiving the decision. The PRO will reach a decision in two weeks. Stage 4: If the PP is still dissatisfied with the decision of the PRO, he/she will appeal to the civil division of a people’s court according to the civil procedural law after receiving the decision of the PRO. The resettlers can appeal on any aspect of the resettlement, including compensation criteria. The resettlers will know their right of lodging appeal during participation in the public meetings and by receiving resettlement information booklet. At the same time, the appeal processes will be publicized among the PAPs through media. The relevant authorities will sort out the opinions and proposals of the PAPs and the resettlement offices at all levels will process the information in a timely and effective manner. The organizations accept the appeals and grievance of the PAPs free of charge, and the expenses incurred there from will be paid by the PRO under project contingency fund.

Annex 2: Explanation for dry land compensation standard for the Realigned Section of the Tongyan (Tongxin-to-Yanchuanzi) Expressway

According to the plan of Ningxia Hui Autonomous Region, an important reservoir for the southern part of Ningxia will be located in the current alignment area of the Expressway section to be constructed. Therefore, a 12.72-km road section within Shizi-Yanchuanzi Section will be realigned. This section starts from Maxipo Village, Jingyuan County (K191+843.66), and ends at Baijia Village, Jingyuan County (K202+571.972). The length of the realigned section is 10.73 km, which is 1.99 km shorter than the original length. According to the field survey and revision in November 2008 according to final design, 730.82 mu land will be permanently acquired by the Project, including 88.44% cultivated land (all is dry land). 1. Process of making dry land compensation standard According to official data from Jingyuan County Government, it could be calculated the average annual output value of wheat in Jingyuan County, which is the main cultivated dry land farm product in the affected areas, from 2005 to 2007 was CNY 219.98 per mu. The decline of the output value of wheat in 2006 was due to the continuing drought there at that time. The affected dry land in the realigned section is slope land with poor soil quality. Mainly winter wheat is planted there and the yield is low. In the past, it was semi-ranching area, and in recent years, most land has been returned for farming to forestry and grass. It has become forest conservation area and the grazing is forbidden. Therefore, the yield of the dry land to be acquired in the realigned section is much lower than the average cultivated dry land yield in Jingyuan County. According to the survey, among the dry land to be acquired, 34.19% was returned from farming to forestry in 2002. In the total 220.99 mu of land returned to forestry, only 480 fruit trees were planted and so far those trees haven’t born mature fruits. Together with some miscellaneous trees, in total 635 trees will be affected. Since those trees haven’t produced valuable fruits, no annual output value can be calculated for the land returned to forestry. However, compensation for those affected trees will be paid in addition to the compensation for land acquisition. Counting out the land returned to forestry, from 2005 to 2007, the average annual output value of the acquired dry land per mu was CNY 144.77. For details, please refer to the following table.

Average annual output value of affected dry land from 2005 to 2007

Year Data for cultivated dry land Data for dry land including cultivated land and land returned to forestry

Output per mu Unit price

Output value per

mu

% of cultivated land in total acquired dry land

Output value per mu

unit Kg/mu CNY/kg CNY/mu % CNY/mu 2005 167 1.25 208.75 65.81% 137.38 2006 153 1.4 214.2 65.81% 140.97 2007 158 1.5 237 65.81% 155.97 On

average 219.98 65.81% 144.77

According to the relevant provisions of the Land Administration Law of the People’s Republic of

China and the Land Administration Regulation for Ningxia Hui Autonomous Region, the dry land compensation for the realigned section shall be six to ten times of the average annual output value of the acquired land for three years preceding such acquisition; and resettlement subsidy shall be four to six times of the average annual output value of the acquired land for three years preceding such acquisition. The Implementation Opinion of Ningxia Hui Autonomous Region Government on "Decision of the State Council on Deepening Reform and Tightening Land Administration (State Council Decree No. 28)" also stipulates that the combined total of land compensation and resettlement subsidy in mountainous area (including all the counties along the Expressway) should not be lower than 10 times the yearly average output value of the land in the previous three years. According to those laws and regulations, it was determined that the dry land compensation standard for the realigned section would be 14 times of the average annual output value of the acquired land for three years preceding such acquisition, including 10 times for land compensation and 4 times for resettlement subsidy. Using 14 times, and the estimated average yield, and multiples, the calculated compensation for dry land to be acquired is 2026.78 CNY/mu. However, the dry land acquisition compensation standard for the realigned section will be 2500 CNY/mu, much higher than calculated 2026.78 CNY/mu. 2. Agreement degree for the dry land compensation standard by the affected villagers After the dry land compensation standard had been drawn up, the officials from Coordination (resettlement) Division of Ningxia Highway Construction Administration Bureau, Jingyuan County Land Resources Bureau and township governments went to the affected villages many times to seek opinions of the affected villages. The villages think the standard is accordant with the real situation. Through discussions, they have accepted this compensation standard. The attached document from Jingyuan County Government confirmed that the affected farmers have accepted the dry land compensation standard at CNY 2500 per mu. 3. Comparison of the dry land compensation standard among the similar big projects in

recent years In recent years, especially in 2008, the dry land compensation standards adopted by the big development projects in local areas are no more than 2500 CNY/mu. Therefore, the dry land acquisition compensation standard for the realigned section is consistent with present situation and development tendency of the land acquisition compensation for the big projects in local areas. The dry land compensation standards for those projects are as follows:

Dry land compensation standards adopted by the big development projects

in local areas in recent years

Project name Taiyuan-Zhongwei-Yinchuan Railway

Guyuan Municipality Dongshanpo Diversion Works Phase II

Mengjiawan-Yingpanshui Expressway

Start year 2006 2008 2008 dry land compensation standard

2500 2320 2500

unit CNY/mu CNY/mu CNY/mu 4. Conclusion

Given all that, the dry land compensation standard for the realigned section meets fully the State and local laws and regulations, and the adopted standard is much higher than the calculated one. The affected villages accept this compensation standard. In the mean time, until 2008 the dry land compensation standards adopted by the similar big development projects in local areas are no more than this compensation standard. Therefore, the dry land compensation standard to be adopted for the realigned section is legitimate, reasonable, and practicable.

Annex 3: Jingyuan County Government Document about explanation on land acquisition compensation standard for realigned section (photocopy)

Translation of Annex 3

Jingyuan County Government Jingyuan Government Document (2009) No.2

Document about the explanation on the land acquisition compensation standard for

the realigned section (Shizi to Yanchuanzi) of Tongxin – Yanchuanzi Expressway Ningxia Highway Construction Administration Bureau, The land acquisition compensation standard for the realigned section (Shizi to Yanchuanzi) of Tongxin – Yanchuanzi Expressway was implemented according to the Ningxia Government Office Document (2005) 2411 issued by Ningxia Hui Autonomous Region. All the compensation fees have been paid except for the realigned section. The land acquisition and relocation compensation standard for the realigned 10-km section have been disclosed to the affected farmers. They think the government has provided favorable compensation for the land attachments and relocation. So the farmers accept the dry land compensation standard at CNY 2500 per mu for the realigned section, though there are some negative factors such as inflation. In the meantime, the township governments and village committees can provide some subsidies for policy considerations to the farmers whose contracted land will be acquired. February 12, 2009

1 The document was issued for the resettlement compensation standards for the Taiyuan-Zhongwei-Yinchuan Railway

and Yanchi- Zhongning Expressway, which stipulated the dry land compensation standard at CNY 2500 per mu.

Download - Resettlement Planning DocumentProject Number: 33469-01 February 2009 Realigned Section of PRC: Ningxia Road Development Project Prepared by Ningxia Highway Construction Administration

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