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Resettlement Plan March 2014

PRC: Integrated Development of Key Townships in Central Liaoning Prepared by Heishan County Municipal Construction Management Department for the Asian Development Bank. This is an updated version of the draft originally posted in June 2012 available on http://www.adb.org/projects/documents/integrated-development-key-townships-central-liaoning-resettlement-plan-heishan

Integrated Development of Key Townships in Central Liaoning

Heishan Subproject

Resettlement Plan

Heishan County Municipal Construction Management Department

27 March 2014

Integrated Development of Key Townships in Central Liaoning Heishan Subproject Resettlement Plan

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ENDORSEMENT LETTER OF RESETTLEMENT PLAN

Asian Development Bank:

The Resettlement Plan (hereinafter referred to as RP) of the Heishan Environmentally Sustainable Urban Infrastructure Development Subproject of ADB Financed Integrated Development of Key Townships in Central Liaoning Project (Project) is prepared and compiled in accordance with relevant involuntary resettlement policies of ADB Safeguard Policy Statement (2009) and relevant laws and regulations of the China Central Government and Liaoning and Heishan governments. During implementation of the Project, we will strictly abide by this RP.

Date: September 2012

Signature:

Deputy Governor: Heishan County Government


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Table of Contents ABBREVIATIONS & MEASURABLE UNITS .............................................................................................. 5

EXECUTIVE SUMMARY .................................................................................................................................... 6

1. INTRODUCTION ............................................................................................................................................ 11

1.1 INTRODUCTION ........................................................................................................................................... 11 1.2 SUBPROJECT DESCRIPTION .................................................................................................................... 11 1.3 MEASURES REDUCE THE SUBPROJECT IMPACT ................................................................................. 12

2. LAND ACQUISITION AND RESETTLEMENT .................................................................................... 13

2.1 SCOPE OF LAND ACQUISITION AND RESETTLEMENT IMPACT ........................................................... 13 2.2 AFFECTED VULNERABLE GROUPS AND ETHNIC MINORITIES ............................................................ 15

3. SOCIAL ECONOMIC STATUS AND IMPACT ANALYSIS ............................................................. 17

3.1 HEISHAN COUNTY AND AFFECTED COMMUNITIES/VILLAGES ........................................................... 17 3.1.1 Heishan County ................................................................................................................................ 17 3.1.2 Affected Communities/Villages .................................................................................................... 17

3.2 SOCIAL-ECONOMIC SURVEY .................................................................................................................... 17 3.3 SOCIAL-ECONOMIC STATUS OF THE AFFECTED PERSONS ................................................................ 18

3.3.1 Education and Occupation ............................................................................................................ 18 3.3.2 Land Resource in the Affected Villages .................................................................................... 19 3.3.3 Income and Expenditure ............................................................................................................... 19

3.4 GENDER ANALYSIS .................................................................................................................................... 20 3.4.1 Gender Difference on Education ................................................................................................ 20 3.4.2 Gender Difference in Employment ............................................................................................. 20 3.4.3 Gender Difference in Income ....................................................................................................... 20 3.4.4 Opinions on Resettlement ............................................................................................................. 20

3.5 IMPACT ANALYSIS ...................................................................................................................................... 21 3.5.1 Farmland Income Loss .................................................................................................................. 21 3.5.2 House Demolition ............................................................................................................................ 22 3.5.3 Demolition of Enterprises .............................................................................................................. 23

4. PARTICIPATION, CONSULTATION AND GRIEVANCE MECHANISM ....................................... 25

4.1 PUBLIC CONSULTATION ............................................................................................................................ 25 4.2 PERCEPTIONS AND CONCERNS .............................................................................................................. 26 4.3 PUBLIC PARTICIPATION AND CONSULTATION PLAN ............................................................................ 28

4.3.1 Public Participation in the project construction ....................................................................... 29 4.3.2 Women’s Participation .................................................................................................................... 29

4.3 DISCLOSURE OF RESETTLEMENT PLAN ................................................................................................ 29 4.4 APPEAL AND GRIEVANCE REDRESS ...................................................................................................... 29

5. LEGAL FRAMEWORK AND RESETTLEMENT POLICY ............................................................... 31

5.1 LAWS AND POLICIES RELEVANT TO RESETTLEMENT ......................................................................... 31 5.1.1 ADB Policy Requirements ............................................................................................................. 31 5.1.2 PRC Laws, Regulations, and Policies ....................................................................................... 31 5.1.3 Main Policies of Liaoning Province and Heishan County.................................................... 31 5.1.4 Policy Objectives.............................................................................................................................. 31

5.2 SUMMARY OF ADB’S POLICY REQUIREMENTS ON INVOLUNTARY RESETTLEMENT ..................... 32 5.3 MAIN DIFFERENCES BETWEEN ADB AND PRC POLICIES ................................................................. 32

5.3.1 Resettlement Plan ............................................................................. Error! Bookmark not defined. 5.3.2 Compensation for Structures/Houses Loss ............................... Error! Bookmark not defined. 5. 3.3 Compensation for Land Loss ........................................................ Error! Bookmark not defined.


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5.3.4 Special Assistance to Vulnerable Groups .................................. Error! Bookmark not defined. 5.3.5 Consultation and Publication ......................................................... Error! Bookmark not defined. 5.3.6 Legal Rights ......................................................................................... Error! Bookmark not defined. 5.3.7 Monitoring and Evaluation .............................................................. Error! Bookmark not defined.

5.4 COMPENSATION STANDARDS .................................................................................................................. 34 5.4.1 The Compensation Standards for Permanent Land Acquisition ....................................... 34 5.4.2 Compensation Standards for Urban and Rural Houses ...................................................... 35 5.4.3 Compensation Standards for Enterprises ................................................................................ 36 5.4.4 Compensation Standard for Ground Attachments and Infrastructure ............................. 37

5.5 COMPENSATION ENTITLEMENT ............................................................................................................... 37

6. RESETTLEMENT AND INCOME REHABILITATION ....................................................................... 40

6.1 RESETTLEMENT .......................................................................................................................................... 40 6.1.1 Resettlement of HHs Affected by House Demolition ............................................................ 40 6.1.2 Resettlement of Enterprises ......................................................................................................... 40

6.2 INCOME REHABILITATION .......................................................................................................................... 41 6.2.1 Compensation Fund Utilization by the Collective .................................................................. 41 6.2.2 Compensation Utilization by Individual HH ............................................................................. 41 6.2.3 Skill Training Plan for Affected Persons ...................................... Error! Bookmark not defined. 6.2.4 Employment in Non-farm Sector ................................................................................................. 44 6.2.5 Employment Opportunities during Project Construction ..................................................... 44

7. INSTITUTIONAL ARRANGEMENT ......................................................................................................... 45

7.1 INSTITUTION ................................................................................................................................................ 45 7.2 RESPONSIBILITIES ..................................................................................................................................... 45 7.3 CAPACITY BUILDING .................................................................................................................................. 46

7.3.1 Resettlement Staff Training ........................................................................................................... 46 7.3.2 Measures to Strengthen the Capacity Building ...................................................................... 46

8. MONITORING & EVALUATION ............................................................................................................... 47

8.1 INTERNAL MONITORING & EVALUATION ................................................................................................ 47 8.2 EXTERNAL MONITORING AND EVALUATION .......................................................................................... 48

8.2.1 Scope and Methods ........................................................................................................................ 48 8.2.2 Reporting .............................................................................................. Error! Bookmark not defined.

8.3 POST-RESETTLEMENT EVALUATION ................................................ ERROR! BOOKMARK NOT DEFINED.

9. RESETTLEMENT IMPLEMENTATION SCHEDULE ......................................................................... 50

9.1 PRINCIPLES FOR RESETTLEMENT IMPLEMENTATION ......................................................................... 50 9.2 RESETTLEMENT IMPLEMENTATION SCHEDULE .................................................................................... 50

10. BUDGET FOR RESETTLEMENT AND COMPENSATION .......................................................... 52

10.1 BUDGET ..................................................................................................................................................... 52 10.2 COMPENSATION FUND FLOW ................................................................................................................ 54

ANNEX I RESETTLEMENT INFORMATION BOOKLET (RIB） ....................................................... 55

ANNEX II CHINESE RELEVANT LAWS AND REGULATIONS ......................................................... 62

ANNEX III TOR OF EXTERNAL M&E .......................................... ERROR! BOOKMARK NOT DEFINED.


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Abbreviations and Measurable Units

AAOV Average Annual Output Value ADB Asian Development Bank AP Affected Person

CC/VC Community Committee/Village Committee DI Design Institute

DMS Detailed Measurement and Survey EA Executing Agency FB Finance Bureau

GDP Gross Domestic Product FSR Feasibility Study Report HH Household

HCLRB Heishan County Land Resource Bureau HCHRSSB Heishan County Human Resource and Social Security Bureau

HCCAB Heishan County Civil Affairs Bureau HCG Heishan County Government

HSCMD Heishan County Municipal Construction Management Department HSRO Heishan Subproject Resettlement Office

IA Implementing Agency M&E Monitoring and Evaluation

PDMF Project Design and Monitoring Framework PMO Project Management Office PPTA Project Preparation Technical Assistance PRC People’s Republic of China RIB Resettlement Information Book RP Resettlement Plan TA Technical Assistance

ToR Terms of Reference m Meter m2 Square Meter km2 Square Kilometer m3 Cubic Meter % Percent


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Executive Summary

A. Subproject Description ES1. The proposed Heishan Infrastructure Development Project is one of subprojects of ADB financed Integrated Development of Key Townships in Central Liaoning. The subproject consists of (i) sustainable development of urban infrastructures (hereafter referred to engineering part), and (ii) capacity development and institutional strengthening.

ES2. The engineering part consists of three components: (i) construction of 14.95 km roads (including the drainage pipeline); (ii) construction of six bridges; and (iii) installation of 10 street lamp transformer boxes, 816 street lamps, and five sets of maintenance equipment.

B. Scope of Land Acquisition and Resettlement

ES3. The proposed subproject will acquire 230.33 mu 1 of collective land (including 175.42mu of farmland, 20.68mu of housing plot, 7.96 mu of village construction land, 23.93mu of other village collective land and 2.33mu of enterprise land), and 9.18 mu of state land (including 2.26mu of urban housing plot, 6.92mu of enterprise land). A total house structure area of 6,219.18 m2, including rural houses of 5,216.53 m2 and urban houses of 1,002.65 m2, will be demolished. An additional 3,185.77 m2of enterprise building area will be demolished.

ES4. A total of 90 HHs with 312 persons2 from eight villages/communities in two townships will be affected by the subproject, which include: (i) 44 HHs with 147 persons affected by farmland acquisition, including one household with three persons affected by both land acquisition and rural house demolition; (ii) 33 HHs with 119 persons will be affected by rural house demolition and housing plot acquisition; and (iii) 14 HHs with 49 persons will be affected by urban house demolition.

ES5. Besides, a total of 19 workers including 12 men and 7 women will be affected by enterprise building demolition and/or land acquisition.

C. Policy Framework and Entitlement ES6. The resettlement objectives are to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all APs in real terms relative to pre-project levels. The resettlement is in line with not only the Chinese laws and regulations, but also with ADB’s policy requirements stated in the Safeguard Policy Statement (2009).

ES7. Key PRC laws and regulations include: (i) the Land Law (2004); (ii) the Decision on Reinforcing Reform in Land Administration by the State Council (State Council [2004] No.28); and (iii) Directive Opinions on Improvement of Compensation and Resettlement System for Land Acquisition (Guotuzifa [2004] 238) (November 3, 2004). Meanwhile, Liaoning Province and Heishan County formulated relevant regulations including: (i) Liaoning Provincial Implementation Regulations of Land Administration Law of P.R.C in Liaoning Province (April 1, 2002); (ii) Notice on Implementation of Regional Integrated Land Price in Land Acquisition in Liaoning Province Area Comprehensive Land Price Standards by Liaoning Provincial People's Government Office (No. 2 [2010] Document of Liaoning Provincial Government, January 7, 2010); (iii) Notice on Guiding Compensation Standards for House Demolition in Heishan County; and (iv) Notice on Compensation Schemes of House Demolition on 9# Land Plot in Heishan County. 1 1 mu = 666.7 square meters, and = 0.0667 acre. 2 After deducting 1 double-counted HH with 3 persons since they are affected by both farmland acquisition and house demolition


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ES8. Compensation and entitlement policy is designed to cover compensation for lost land and non-land assets, including assistance to restore or enhance livelihoods of all APs. APs will receive compensation for land and non-land assets in cash according to latest land acquisition and resettlement policy of Heishan County Government. Moreover, various assistances will be available to severely affected persons and vulnerable groups. An entitlement matrix is prepared and included in the RP.

D. Resettlement and Rehabilitation ES9. Resettlement of HHs affected by house demolition. APs have two options on compensation for house demolition: (i) cash compensation, and (ii) replacement houses. If they choose cash compensation, HSCMD will pay a lump sum of compensation to them after house evaluation by qualified agency. And if APs prefer replacement houses, they will be resettled in a planned residential community named Cuicanmingdu, which will be completed in June 2012 with house areas ranging from 45 m2 to 120 m2. According to the survey, 41 HHs (out of 47 HHs) affected by house demolition are willing to choose replacement houses as compensation

ES10. Income rehabilitation of affected farmers. Initial assessment indicated that farmland acquisition impact is limited among affected HHs in four villages. Although 43 HHs (97.7%) out of the total 44 HHs will lose more than 10% of their farmland, 40 HHs (90.9%) will lose less than 10% of their total HH income. Non-farm employments will be the main way of income rehabilitation for APs since there are a plenty of such opportunities in Jinzhou City and the big cities nearby (e.g. Dalian, Shenyang and Yingkou). In addition to non-farm employments, high-value farming on remaining land (greenhouse vegetables, fruit and sizable livestock) will also be promoted among APs.

ES11. Resettlement of affected enterprises. One enterprise (the nursing home) will be only affected by demolition of a dining room. There will be no impacts on its daily operation. They will get cash compensation according to the replacement price. The other two auto repairing workshops will be fully demolished. They will get compensations for building and facility demolition, business interruption and moving. Since they are small workshops, one floor for them should be sufficient. HSCMD has promised to resettle them in Cuicanmingdu Community.

E. Public Consultations and Participation ES12. From August 2011 to February 2012, several rounds of public consultation meeting had been organized in the subproject area. Agencies attended in the meeting include: Heishan County Government, Heishan County Urban Construction Bureau, affected community and village committees, Heishan County Land Resource Bureau, Heishan County Civil Affairs Bureau, Heishan County Human Resource and Social Security Bureau, representatives of APs and Consulting Agency. In addition, 29 HHs in eight villages were targeted and interviewed for sample HH socioeconomic survey. During the consultation meetings and interviews, information about the subproject and resettlement planning activities were provided to various stakeholders. Also, Opinions and suggestions raised by various stakeholders about the planning and implementation of resettlement activities were collected through these consultation meetings and were incorporated in the RP. Local government and the design institute (DI) will continue their consultation activities during preliminary design and final design.

ES13. A resettlement information booklet (RIB) was drafted and will be distributed to every affected HH by June 2012. During RP implementation, local government will follow the detailed process of the information disclosure and notification procedures as specified in the RP. RP implementation will continue to follow the participation approach, and a follow-up participation and consultation plan is included in the RP.

F. Appeals and Grievance Redress ES14. The APs can appeal or raise complaints for anything related to land acquisition,


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resettlement, income rehabilitation and compensation. They can complain to the affected village committee (VC) or subdistrict/township office. If they are not satisfied with the decision of the above, they can appeal to HSRO or HCLRB and then Liaoning PMO or directly to ADB. APs can also take their case to the civil division of a people’s court at any time.

ES15. The procedures on appeals and grievance redress have been included into RIB. The procedures will be further explained in the public meetings before implementation of land acquisition and house demolition. G. Resettlement Budget ES16. The resettlement budget of the subproject is 64.5767 million CNY, accounting for 17.6% of the total investment (366.844 million CNY). The budget includes: (i) 6.9286 million CNY of compensation for land acquisition and standing crops; (ii) 39.0217 million CNY of compensation for house and enterprise demolition; (iii) 0.4425 million CNY for ground attachment/infrastructures; (iv) 1.7238 million CNY for M&E, management, and training fees; (v) 7.18 million CNY of taxes and other fees; and (vi) 9.2786 million CNY for contingency.

ES17. The resettlement budget can be adjusted based on the actual implementation situation of resettlement activities.

H. Institutional Arrangements ES18. The Project Management Office (PMO) of Liaoning Province is the executing agency (EA) of the overall project that has seven subprojects, including this one. Heishan County Municipal Construction Management Department (HSCMD) is the implementing agency (IA) and Heishan subproject resettlement office (HSRO) will be established under HSCMD to coordinate all implementation activities, including planning, consultation, financing, implementation and monitoring the delivery of entitlements in time. HSRO will be responsible for resettlement implementation and delivery of entitlements with support from relevant government agencies, as stipulated in the RP. Township office and APs will actively participate in the implementation of this RP. A training program is included in the RP for building the capacities of resettlement personnel at various levels.

I. Implementation Schedules ES19. The land acquisition and resettlement (LA&R) is planned to start in October 2013 and completed in December 2016. HSCMD has agreed to a set of supervision milestones with ADB to ensure timely and effective implementation of the resettlement activities (see Table A1).

Table A1: Resettlement Implementation Schedule


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No. Resettlement Tasks Target Responsible Agency

Completion Deadline

1. Capacity Building 1.1 Establishment of HSRO under HSCMD HSCMD Aug 2012 1.2 Designate village authorities HSCMD Oct 2013 1.3 Staff training PMO Oct 2013 2. Consultation and Information disclosure 2.1 Distribution of RIB among APs 90 copies HSCMD June 2012

2.2 RP distribution to affected villages/community, township and relevant government agencies

8 copies HSCMD July 2012

2.3 Submit RP to ADB for acceptance PMO/ADB May 2012 3. RP Updating Based on DMS

3.1 DMS HCLRB,

HSCMD and DI

September 2013

3.2 Finalizing RP and submit to ADB HSCMD October 2013 4. Compensation agreements

4.1 Agreements with Community/village committee

8 villages/ Communities

HCLRB and HSRO, HSCMD

February 2014

4.2 Agreements with affected HHs/enterprises 90 HHs


February 2014

5. Resettlement and Rehabilitation 5.1 Moving to new houses VC, HSCMD March 2014 5.2 Start Civil works HSCMD April 2013 6. M&E 6.1 Internal monitoring HSCMD 2013-2016

6.2 External monitoring External monitor 2013-2016

6.3 Internal monitoring report Quarterly HSCMD and PMO 2013-2016

6.4 External monitoring report Semi-annually External monitor 2013-2016

6.5 Resettlement completion report External monitor Dec 2016


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monitor/PMO

J. Monitoring and Report ES20. HSCMD, with the support of HCLRB, HSRO, township, community and villages, will carry out internal monitoring of the RP implementation. HSCMD will report to Liaoning PMO on the progress of its RP implementation, while the latter will then report to ADB quarterly. The LPMO will engage an independent agency to conduct external monitoring and evaluation for this and other subprojects. This external monitor will submit semi-annual monitoring reports to to LPMO and ADB. .


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1. Introduction 1.1 Introduction 1. This RP was prepared based on: (i) ADB's Safeguard Policy Statement (safeguard requirements 2 on involuntary resettlement) (June 2009); (ii) Chinese relevant laws and regulations; and (iii) Local relevant regulations.

2. Data and relevant information of this RP were from: (i) the subproject FSR (October 2011); (ii) land acquisition and resettlement (LA&R) impact survey (August 2011); (iii) consultations with the affected HHs; (4) socio-economic survey (September - October 2011).

1.2 Subproject Description 3. The engineering part of the subproject consists of three components: (i) construction of 14.95 km roads (including the drainage pipeline); (ii) construction of six bridges; and (iii) installation of 10 street lamp transformer boxes, 816 street lamps, and five sets of maintenance equipment. Table 1-1 gives the details of the contents of the subproject’s engineering components.

Table 1-1: Contents of Subproject

No. Components Contents LA&R involved

1 Road

Construction of two new roads: Xingongye Street (from Xiaoxiao Road to Zhongshan Road) with length of 6,347 m and width of 24 m; Bintie Road (from South Outer Ring Road to Zingongye Street) with length of 2,805 m and width of 30 m; Reconstruction of one road: Jiefang Street (from Bintie Road to Longshan Road) with length of 5792 m and width of 52 m.

Yes

2 Drainage Laying storm water pipeline (d600-4000 x 2500 mm) with total length of 3,4192 m and drainage pipeline (d500-d700 mm) with total length of 8,008 m

No3

3 Bridge Construction of six bridges No

4 Equipment installation

Installation of 10 transformer boxes, 816 street lamps and five maintenance equipment No

4. The distribution of the road component is given in Figure 1 on the following page.

3 There is no LA&R impacts under this component since it is parallel or prior to road construction/reconstruction.


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Figure 1 Distribution of the road component 1.3 Measures Reduce the Subproject Impact 5. LA&R impacts arise from road component. Through comparative studies of two options for road component, LA&R impacts have been minimized by HSCMD and the Design Institute (DI). Table 1-2 compares the two options.

Table 1-2: Comparison between Alternative and Design Schemes

Component Scheme 1 Scheme 2 Note

Road Widening roads from two sides

Widening roads from one side

Choosing Scheme 2 reduced 400 m2 of house demolition and 1,600 m2 of land acquisition.

6. Meanwhile, efforts and measures will be taken during construction period to reduce project impact, including (i) minimizing the temporary land use; (ii) reducing the impacts on the local traffic and surrounding environment; (iii) restraining dust; (iv) controlling and lowering noise; and (v) proper disposal of waste in the construction sites.


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2. Land Acquisition and Resettlement

2.1 Scope of Land Acquisition and Resettlement Impact 7. Heishan PMO conducted the project impact survey with Heishan House Demolition Office and Heishan Land Resource Administration Bureau in August 2011. They consulted with Heishan Statistics Bureau and other relevant departments, discussed with leaders and representatives of affected communities and villages for opinions or comments on LA&R and relevant compensations policies.

8. A team from Liaoning Urban-rural Construction Planning and Design Institute (DI), entrusted by Heishan PMO, visited the project area and collected local social and economic information in September – October 2011. They consulted with Heishan House Demolition Office for compensation policies, measures and relevant legislation, and with Heishan Land Resource Administration Bureau for compensation policies, procedures, and any conditions of land acquisition.

9. Two roads, Xingongye Street and Bintie Road, will be constructed newly, while one road, Jiefang Street, will be reconstructed on the existing road. The road component under this subproject will affect eight villages/communities in two townships. Table 2-1 summarizes the LA&R impacts of the subproject by village/community. Xinggong Community, Xiangyang Community and Heishan Town, three out of eight villages/communities, are affected by house demolition without land acquisition, while other five villages are affected by both land acquisition and house demolition. The impact scope is based on current feasibility study report. It will be finalized after completion of the project detailed design and detail measure survey (DMS). Affected households, people and enterprises are summarized in Table 2-1.

10. A total of 230.33 mu of collective land (including 175.42mu of farmland, 20.68mu of housing plot, 7.96 mu of village construction land, 23.93mu of other village collective land and 2.33mu of enterprise land) and 9.18 mu of state land (including 2.26mu of urban housing plot, 6.92mu of enterprise land) will be acquired.

11. A total house area of 6,219.18 m2, including rural houses of 5,216.53 m2 and urban houses of 1,002.65m2, will be demolished. And an additional 3,185.77 m2 of enterprise building area will be demolished.

Table 2-1: Land Acquisition and Resettlement Impacts

Item Unit Total

Zhenan Town- ship

Heishan Township

Xia- wanzi Village

Chengguan Vil-

lage

Dong-guan

Village

Nan-guan Vil- lage

Huang- jiahao Village

Xing- gong Com-

munity

Xiang-yang Com-

munity

Hei- shan Town

A Perman- ent land acquisition

mu

1 Collective land 230.33

1.1 Farmland mu 175.42 12.14 100.55 49.7 13.03

1.2 Housing plot mu 20.68 0.48 14.8 1.40 4.00

1.3 Village construction land

Mu 7.96 7.96

1.4. Other collective land

mu 23.93 0.05 4.24 7.9 11.74


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Item Unit Total

Zhenan Town- ship

Heishan Township

Xia- wanzi Village

Chengguan Vil-

lage

Dong-guan

Village

Nan-guan Vil- lage


Xing- gong Com-

munity

Xiang-yang Com-

munity

Hei- shan Town

1.5 Enterprise land mu 2.33 2.33

2 State-owned land mu 9.18

2.1 Housing plot Mu 2.26 1.1 0.47 0.68

2.2 Enterprise land mu 6.92 6.92

B Demolition of residential houses

1. House m2 6,219.18

1.1 Brick- concrete structure

m2 4,012.32 229.30 1,730.96 435.82 613.59 490.4 208.05 304.2

1.2 Brick- wood structure

m2 2,206.86 0.00 1,924.70 0.00 282.16

2. House Attachments

2.1 Wall m 809.5 73.00 76.50 352.00 106.00 189.00 13.00

2.2 Green- house m2 9,874.50 9,874.5

2.3 Well 36 29 7

2.4 Door 52 3 13 8 13 6 4 5

2.5 Fruit Tree 154 11 20 13 100 10

2.6 Fish Pond 6 6

2.7 Henhouse and piggery

m2 2,219.32 442.47 806.00 970.85

2.8. Simple shanty m2 5,292.12 274.48 2,940.00 358.915 356.55 825.23 76.80 460.14

C Demolition of Enterprises

1. Building m2 3,185.77 865.65 2,320.12

D Ground Attachments

1 Wall m2 1,203 1,203

2 Fruit trees tree 2,184 2,184

12. People, households and enterprises affected by the LA&R is presented in Table 2-2. 76 rural households with 263 persons4 from five villages will be affected by the land acquisition and/or house demolition, which include 44 households with 147 persons affected by farmland acquisition and 33 households with 119 persons affected by house demolition and housing plot acquisition; (ii) 14 urban HHs with 49 persons affected by house demolition only.

13. Besides, a total of 19 workers including 12 men and 7 women will be affected by enterprise building demolition and/or land acquisition.

4 After deducting 1 HH with 3 persons who are affected by both farmland acquisition and house demolition.


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Table 2-2 LA&R Impacts by HHs, APs and Enterprises

Item Unit Total

Zhen-an

Town-ship

Heishan Township

Xiaw- anzi Vil- lage

Chen- guang Village

Dong-guan Vil- lage

Nan-guan Vil- lage


Xing-gong Com-mun-

ity

Xiangyang Commun-

ity

Hei- shan Town

1. Farmland Acquisition

Farmland mu 175.42 12.14 100.55 49.7 13.03 Affected HHs HH 44 8 9 13 14

APs person 147 28 26 37 56

2. Rural House Demolition and Housing plot Acquisition

Housing plot mu 20.68 0.48 14.8 1.40 4.00 Brick- concrete structure

m2 3009.67 229.30 1,730.96 435.82 613.59

Brick- wood structure

m2 2,206.86 1,924.70 282.16

Affected HHs HH 33 3 14 7 9

APs person 119 9 50 25 35

3. Both 1 and 2

Housing plot mu 5.6 5.6 Brick- wood structure

m2 52 52

Affected HHs HH 1 1

APs person 3 3

4. Urban house demolition

Brick- concrete structure

m2 1002.65 490.4 208.05 304.2

Housing plot mu 2.26 1.1 0.47 0.68 Affected HHs HH 14 6 3 5

APs person 49 22 7 20

3. Enter- prise Demolition

Enterprise land acquis- Ition (collective)

mu 2.33 2.33

Enterprise land acquis- Ition (state-owned)

mu 6.92 6.92

Building demolition m2 3,185.77 865.65 2,320.12

Affected enterprise No. 3 1 2

Affected staff persons 19 4 15

14. However, the LA&R impacts in the above Tables should be further verified and updated based on DMS upon the availability of final engineering design of the subproject.

2.2 Affected Vulnerable Groups and Ethnic Minorities 15. The vulnerable groups include: (i) rural poor with the poverty line of 2,000 CNY per capita per year in 2010; (ii) urban poor registered and supported by MLSP in 2010; (iii) HHs with


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disabled; (iv) elders of over 60 and are living alone; and (v) women-headed HHs. There are four vulnerable HHs among all the affected HHs under this subproject. All of them are rural poor residents.

16. There are eight Manchu HHs and one Hui HH (ethnic minority) among the affected HHs. There is no ethnic minority community or village where Manchu or Hui people concentrated in the two townships. They are unexceptionally mixed with the Han. All the Manchu and Hui HHs will be given priorities during resettlement and income rehabilitation.


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3. Social Economic Status and Impact Analysis 3.1 Heishan County and Affected Communities/Villages 3.1.1 Heishan County 17. Heishan County is under the administration of Jinzhou Municipality. There are 22 townships (including one ethic minority township) in Heishan County. The total area of the county is 2,436.01 km2 and the total population is 0.634 million.

18. In 2010, GDP of Heishan County was 11.5 billion CNY, 20% increase comparing with 2009. Per capita rural net income was 7,400 CNY.

3.1.2 Affected Communities/Villages 19. The subproject will affect eight community/villages in Heishan Township and Zhenan Township of Heishan County. Basic information on the eight communities/villages is presented in Table 3-1.

Table 3-1: Basic Information of the Affected Communities/Villages

Township Village Total HHs Total Pop.Per capita net

income in 2010 (CNY)

Industrial structure (%)

1st 2nd 3rd

Heishan Township

Chengguang Village 1,250 2,670 8,000 15 20 65

Dongguan Village 779 1,815 7,000 30 10 60

Nanguang Village 730 1,730 7,000 20 30 50

Huangjiaao Village 363 1,095 7,000 50 30 20

Xinggong Community 2,300 4,500 8,600 40 60

Xiangyang Community 4,000 10,000 8,600 50 50

Heishan Town 28,071 61,305 8,600 45 55 Zhenan

Township Xiawanzi Village 900 3,000 6,000 34 13 53

Total 38,393 86,115 7,600 Note: Due to lack of reliable statistic data at village/community level, the net income and industrial structure are indicative. Source: Field survey in September 2011.

3.2 Social-economic Survey 20. A socioeconomic survey, together with various consultation activities, was carried out with the support of IA in September to October 2011. The objectives of the survey and consultations are (i) to collect the socio-economic information of the APs and affected villages; (ii) to discuss relevant issues regarding land acquisition and livelihood rehabilitation measures with APs and affected village committees.

21. Key to the survey is the questionnaire survey of affected HHs of various types. Table 3-2 summarizes the sample distribution and representative status. As shown, 29 independent HHs (32.2% of total 90 HHs) with 93 persons (29.8% of the total affected persons) were interviewed.


18

Table 3-2: Surveyed Communities/Villages and HHs

Township Community Affected HHs Surveyed HHs Sampling percentage

Heishan Township

Chengguan VIllage 12 4 33.33% Dongguan Village 26 7 26.92% Nanguan Village 21 8 38.10%

Huangjiahao Village 9 3 33.33% Xinggong Community 6 2 33.33% Xiangyang Community 3 1 33.33%

Heishan Town 5 1 20.00% Subtotal 82 26 31.71%

Zhenan Township

Xiawanzi Village 8 3 37.50% Subtotal 8 3 37.50%

Total 90 29 32.22% 3.3 Social-economic Status of Affected Persons 3.3.1 Education and Occupation 22. Table 3-3 presents the education and employment status of surveyed HHs. As for education: (i) 92.5% of the APs have nine years' education (junior high school); (ii) illiteracy is very low; and (iii) some people have more than nine years' education (high school and above, 6.5%).

23. As for employment status, among the 78 labors (83.9% of all persons from surveyed HHs): (i) 13 persons or 16.7% are full-time workers; (ii) 62 labors or 79.5% are mostly engaged in farming and some of them (39.7%) also take part-time migration work; and (iii) only 3 persons or 3.8% are businesspersons.

Table 3-3: Education and Occupation of Surveyed HHs (Unit: person, %)

Item Male Female Subtotal

No. % No. % No. % Education

Illiteracy 0 0 1 2.3 1 1.1 Primary school 12 24 8 18.6 20 21.5 Junior high school 34 68 32 74.4 66 71.0 Senior high school 2 4 2 4.7 4 4.3 Vocational college 1 2 0 0 1 1.1 University 1 2 0 0 1 1.1

Total 50 100.0 43 100.0 93 100.0 Occupation Farmer 32 76.2 30 83.3 62 79.5 (Farmer/Migrant Worker) 21 50 10 27.8 31 39.7

Businessman 3 7.1 0 0 3 3.8 Full-time Worker 7 16.7 6 16.7 13 16.7

Total 42 100.0 36 100.0 78 100.0


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Source: Socioeconomic Survey in September 2011. 3.3.2 Land Resource in Affected Villages 24. Average farmland area is 11.7 mu per HH in Heishan Township and 4.87 mu per HH in Zhenan Township. (See Table 3-4.)

Table 3-4: Land Information of the Surveyed HHs (Unit: mu/HH) Township Surveyed HHs Minimum Maximum Average

Heishan Township 15 3.15 65.0 11.7 Zhenan Township 3 4.70 5.10 4.87

25. The collective land in Heishan County was redistributed in year 1999 during Second Land Contracting Period. At present, the main plant is corn, only one crop. The net income from planting corn is 600 CNY per mu.

3.3.3 Income and Expenditure 26. Household income and expenditure in 2010 are shown in Table 3-5, while income by source and expenditure items are given in Table 3-6 and Table 3-7, respectively.

Table 3-5: Income and Expenditure of Surveyed HHs in 2010 (Unit: CNY/person)

Township Surveyed HHs Index Min. Max. Average

Heishan Township

4 (Urban)

Net income 4,286 15,000 8,650

Expenditure 2,850 10,500 3,960

Net Saving 3,200 9,200 4,690

22 (Rural)

Net income 1,550 13,333 7,400

Expenditure 1,750 6,440 3,200

Net Saving 2,100 9,000 4,200

Zhenan Township 3 (Rural)

Net income 4,250 8,533 6,050

Expenditure 1,350 4,500 2,550

Net Saving 2,300 5,800 3,500

Table 3-6: Income Sources of the Surveyed HHs in 2010

Item Status Income by source (%)

Farming Migrant work Salary Business Others Total

Heishan Township

Urban 0.0 35.9 39.5 12.7 11.9 100.0

Rural 32.0 44.8 6.2 10.3 6.7 100.0 Zhenan

Township Rural 38.0 51.8 3.4 0.0 6.8 100.0

Note: Others refer leasing houses, land and investment in financial market, etc.


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Table 3-7: Expenditures of Surveyed HHs in 2010

Township

Expenditure by Items (%)

Status Food Clothes Edu- cation Medical

Culture and

Entertain-ment

Trans- portation/Communication

Gifts Giv- ing

Total

Heishan Township

Urban 18.6 19.1 20.0 17.9 6.9 8.5 9 100.0

Rural 25.6 15.2 15.9 14.4 5.5 6.4 17 100.0 Zhenan

Township Rural 34.8 12.9 13.0 12.6 3.4 3.3 20 100.0

3.4 Gender Analysis 27. There is no single-women headed family among affected HHs.

3.4.1 Gender Difference on Education 28. As indicated in Table 3-3, there are some differences in educational levels between male and females: (i) 24% of male labors have finished primary school, while it is only 18.6% for female; (ii) 68% of male labors received middle school education, while it’s 77.4% of female labors finished it; (iii) 4% male labors received college or university education but no female labors got that.

3.4.2 Gender Difference in Employment 29. There are also some differences in employment status between male and females: (i) 76.2% male labors and 83.3% female labors engaged in farming; (ii) 50% of male labors are doing migrant worker after farming season but it’s only 27.8% for female.

3.4.3 Gender Difference in Income 30. Women’s contribution to HH income is less than 40% (see Table 3-8).

Table 3-8: Women’s Contribution to HH Income in 2010

Township Status Surveyed HHs Women’s Contribution to HH Income (%)

Min. Max. Average

Heishan Township

Urban 4 20 60 38.4 Rural 22 10 65 32.2

Zhenan Township Rural 3 5 70 34.5

3.4.4 Opinions on Resettlement 31. The opinions on resettlement by men and women are very similar (See Table 3-9): (i) men and women are equally concerned about reasonable compensation rates and timely payment; (ii) men and women are equally unconcerned about the impossible replacement farmland; and (iii) men and women’s concerns about new careers, rehabilitation of income loss, future employment, and children’s education are rather similar.


21

Table 3-9: Opinions on Resettlement

Item Male (N=19) Female (N=10) Both (N=29)

Major Minor Major Minor Major Minor 1 Fair compensation 100% 0% 100% 0% 100% 0% 2 Timely compensation 100% 0% 100% 0% 100% 100% 3 New career 36% 64% 30% 70% 33% 67% 4 Replacement land 21% 79% 17% 83% 19% 81% 5 Income loss 55% 45% 53% 47% 54% 46% 6 Future employment 58% 42% 60% 40% 59% 41% 7 Child's education 60% 40% 66% 34% 63% 37% 8 Assistance in resettlement 35% 65% 55% 45% 45% 55% 9 Separation from families and relatives 25% 75% 15% 85% 20% 80%

3.5 Impact Analysis 3.5.1 Farmland Income Loss 32. Permanent land acquisition under this subproject will affect five villages, total land acquisition amount is 230.33 mu, including 175.42 mu of farmland, 26.64 mu of housing plot, 23.93 mu of other land, and 2.33 mu of enterprise land. 76 HHs with 263 persons will be affected directly including 44 HHs with 147 persons affected by land acquisition. Per capita farmland loss of total villagers in four villages is 0.02mu. Impact of farmland acquisition on four villages is presented in Table 3-10. Based on the total farmland of four affected villages, the farmland loss is 1.21% in average. The maximum loss is 8.55% for Chengguan village, while the minimum is only 0.15% for Xiawanzi village. The farmland loss per capita is 0.85% in average.

Table 3-10: Farmland and Income Loss of Affected Villages

No. Village Cheng- guan

Village

Gong- guan

Village Nanguan Village

Xiawan-zi

Village Total/

Average

1 Total HHs 1,250 779 730 900 3,659

2 Rural population 2,670 1,815 1,730 3,000 9,215

3 Total farmland (mu) 1,100 2,340 1,990 8,000 13,430

4 Farmland Loss (mu) 100.55 43.60 13.03 12.14 175.42

5 Farmland Loss (%) 8.55 1.86 0.65 0.15 1.21

6 Per capita farmland before project (mu/person) 0.41 1.29 1.15 2.67 1.38

7 Per capita farmland after project (mu/person) 0.38 1.27 1.14 2.66 1.36

8 Per capita farmland loss (mu/person) 0.03 0.02 0.01 0.01 0.02

9 Income loss (%) 1.28 0.56 0.13 0.06 0.85

33. The extent and impact of farmland and income loss on affected HHs is shown in Table 3-11.


22

Table 3-11: Farmland and Income Loss Impact on Affected HHs

Extent and Impact of Farmland Loss

Affected HHs Total

Heishan Township Zhanan Township

Chengguan Village

Dongguan Village

Nanguan Village

Xiawanzi Village HH %

<10% 0 0 0 1 1 2.3 10%-30% 3 3 10 6 22 50.0 30%-50% 6 10 4 1 21 47.7

Total 9 13 14 8 44 100.0 Income Loss

<10% 8 11 14 7 40 90.0 11%-20% 1 2 1 4 9.1

Total 9 13 14 8 44 100.0 Average farmland per HH

before LAR 30.5 9.7 4.9 8.9

Average farmland per HH after LAR 20.1 6.4 4.0 8.88

Note: (i) HH income loss was estimated based on the data (Table 3-6) of sampling survey. (ii) After land acquisition, Xiawanzi Village will reassign all remaining farmland to all of 900 households averagely. 34. For 44 households from four villages affected by farmland acquisition, as Table 3-11 indicated, although 43 HHs (97.7%) out of the total 44 HHs will lose more than 10% of their farmland, 40 HHs (90.9%) will lose less than 10% of their HH income. 3.5.2 House Demolition 35. Total house demolition area will be 6,219.18 m2 from 47 households (including 5,216.53 m2 of 33 rural houses and 1,002.65 m2 of 14 urban houses). Average housing area per HH was assessed in the socio-economic survey and is shown in Table 3-12.

Table 3-12: Housing Area of the Surveyed HHs

Township House Status Surveyed HHs

Housing Area (Unit: m2/HH)

Min. Max. Average

Heishan Township Urban 4 64.0 90.4 71.6 Rural 7 36.0 121.0 102.0

36. All of the surveyed houses are single story of brick-concrete or brick-wood structures built in 1970s and 1980s, the housing conditions and counterpart facilities are very poor (see Figure 2). According to the survey, people in these areas are looking forward to chances like this subproject to be resettled in a better place. Therefore, house demolition under this subproject even has positive impact to them.


23

Figure 2 Living Conditions of APs (by House Demolition)

3.5.3 Demolition of Enterprises 37. The subproject will affect three enterprises by demolishing 3,185.77 m2 of building area.Among three enterprises, one is a nursing home. The dining room of the nursing home will be demolished due to the subproject. The nursing home can build a new dining room in their garden before the demolition, so the structure demolition will have no much impact on its daily operation.

The other two are enterprises with the business of auto repair. Both will be affected by building demolition and one will be also involved in land acquisition. Basic information of the three affected enterprises is presented in Table 3-13.


24

Table 3-13: Basic Information of the Affected Enterprises

No. Name Land Type Business

Total Land (mu)

Land Acquired

(mu)

Total Building

Area (m2)

Demolition Area (m2)

No. of affected workers

Male Female Average monthly salary (CNY)

1

Heishan Town Nursing Home

State- owned

Nursing service 18 0.92 1,433 610.36 12 5 7 800

2 Auto Repair Factory

State- owned

Auto repair 6 6 1,709.76 1,709.76 3 3 0 2000

3

Xinbao- sheng Auto Repair Workshop

Village Collec-

tive

Auto repair 2.33 2.33 865.65 865.65 4 4 0 2000

Total 3185.77


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4. Participation, Consultation and Grievance Mechanism

4.1 Public Consultation

38. Relevant government agencies and the DI have conducted a series of surveys and consultation meetings during the preparation of RP. At least five consultation meetings have been held and at least 195 persons have participated in the consultation. Out of the 195 persons 119 were affected persons and 48 were women. Key surveys and consultation activities are presented in Table 4-1.

Table 4-1: Summary Consultation Records

Date Institutions Number of Participants Purpose Major

Discussion/Response Result

August 20, 2011

DI, IA,HCLRB, VCs, 11

To introduce of the proposed subproject; to estimate of the LA&R impacts;To discuss the impact and socio-economic survey plan and coordination issues.

IA needs a detailed impacts and socio-economic survey plan.

DI and IA will propose the detailed survey plan.

September 10, 2011

DI, IA,HCLRB, HCHRSSB,

HCCAB, VCs 13

To understand LA&R policies as well as the social security policies for APs. To discuss the survey plan.

Discussed the policy gaps of LA&R between Heishan County and ADB and identified the survey areas.

Project scope was confirmed, and the land acquisition and Quantities of replacement houses will be confirmed after survey of affected villages and communities.

September 27, 2011

DI, IA, HCLRB, villages and CC/VC, APs

35

To conduct the survey; To collect data and information; To prepare compensation and rehabilitation plan.

Understood APs’ attitudes; Collected the baseline data; Recommended compensation standards; Recommended rehabilitation measures; APs provided their preferred rehabilitation measures; and Discussed the advantages and disadvantages of various compensation approaches.

Learnt about socio-economic status of the APs, and their concerns.

January 2012

TA consultants, Heishan PMO, RP

preparation agency, VC, APs

64

Discussion on training plan;

Discussion on grievance address channels; and introduction of ADB’s

Reflected the result of the discussion in the RP.

All are incorporated in the RP


26

Date Institutions Number of Participants Purpose Major

Discussion/Response Result

resettlement policies

Feb. 2012

Heishan PMO, Land

Administration Bureau,

Enterprises/shops, VCs, APs

72

Further defining the compensation rates and resettlement plan

The affected households accepted the RP The affected households suggested that extensive consultation be conducted at the implementation stage

All are incorporated in the RP

39. In September 2011, the DI conducted the public participation and resettlement surveys under the support of IA and relevant government agencies via questionnaire. A total of 35 questionnaires were sent out and 29 valid questionnaires were collected back.

4.2 Perceptions and Concerns

40. APs’ perceptions regarding LA&R during the survey in September 2011 are shown in Table 4-2. In general, APs support the project and believe they can be fairly compensated. Their major concerns were presented in Table 3-9. In addition, more public participation and consultation were conducted in April and May 2012, and will be conducted in the future of 2012.

Table 4-2: Perception of APs

Question Answer % (1) Do you know about the Asian Development Bank-Funded Heishan County Road Network Construction and Upgrading Subproject?

I know I know a little bit

I know nothing about it

67.7 32.3

0

(2) If so, when did you learn about it? Less than half year

One year ago Two years ago

100 0 0

(3) How do you know about the subproject?

Newspaper TV

Village meetings Heard news from

neighbors, relatives and friends

Social surveyor

0 0

97.7

2.3 0

(4) When did you learn your land or house would be acquired?

Less than half year One year ago Two years ago

100 0 0

(5) How did you learn that your land or house will be acquired?

Social surveyor Township/village

leaders disclosed the information

Township/village meetings

Heard news from neighbors, relatives and

friends

0 0

97.7

2.3

(6) Do you support the subproject?

Yes No

Don’t care I don’t know

98.4 0

1.6 0


27

Question Answer %

(7) Do you think that the subproject will increase employment opportunities for the local people?

Yes No

I don’t know

97.1 0

2.9

(8) Do you think the subproject will improve the quality of water, health, and air?

Yes No

I don’t know

96.1 0

3.9

(9) Do you think the subproject will improve the local environment?

Yes No

I don’t know

96.8 0.0 3.2

(10) Do you think the subproject will promote local economic development?

Yes No

I don’t know

100 0 0

(11) Do you think the subproject will promote the development of local tourism?

Yes No

I don’t know

100 0 0

(12) Do you think the subproject will stimulate the local housing price uprising?

Yes No

I don’t know

96.4 0.0 3.6

(13) Do you think the subproject will improve the local investment environment?

Yes No

I don’t know

100 0 0

(14) Do you think impoverished people will get benefit from the subproject?

Yes No

I don’t know

91.7 0.0 8.3

(15) Do you think women will benefit from the subproject? Yes No

I don’t know

89.1 0.0 10.9

(16) What impacts will be brought about by the subproject for your family?

Getting better and better

Getting worse and worse

No change I don't know

83.4 0

4.2 12.4

(17) Generally, do you think you will benefit from the subproject?

Get benefit Suffer loss

I don't know

79.2 3.6 17.2

(18) Are you fully aware of the subproject’s potential impacts on your family?

Yes No

I don’t know

91.7 0

8.3

(19) Do you know the Land Management Law of PRC? I know

I know a little bit I know nothing about it

50.0 17.3 32.7

(20) Do you think you will be fairly compensated? Yes No

I don’t know

94.5 0

5.5 (21) Besides compensation, do you think you will get necessary support from relevant governmental agencies during the implementation of the RP?

Yes No

I don’t know

83.1 0.0 16.9

(22) Do you agree with the cash compensation for you acquired farmland?

Agree Disagree

I don't know

92.0 0.0 8.0

(23) If your house in an urban area is demolished, what kind of compensation do you want?

Cash Replaced house

0.0 100


28

Question Answer % (24) If your house in an rural area is demolished, what kind of compensation do you want?

Cash Replaced house

12.3 87.7

Source: socioeconomic survey. Note: 29 households were interviewed. The percentage is calculated based a total 29 people interviewed.

41. The ideas and concerns of APs were reflected in this RP, particularly those regarding compensation rates and income restoration strategy, and measures were then incorporated.

4.3 Public Participation and Consultation Plan

42. Notwithstanding a series of public consultation activities have already been carried out during the preparation of the RP, IA and local government will carry out additional consultations during the process of implementing LA&R. The principal activities to be undertaken in the future are: (i) Publication and dissemination of a Resettlement Information Booklet RIB (see Annex I), summarizing the policies, entitlements, compensation standards and rates, grievance procedures (ii) Formal meetings to ratify the options related to compensation disbursement and utilization; (iii) Detailed Measurement Survey (DMS) to finalize land and other property losses for each affected HH; and (iv) consultation of APs and their village committees during LA&R. All these planned activities will have full participation of communities, villages and local Women’s Federation etc. Table 4-3 presents the participation and consultation plan.

Table 4-3: Public Consultation Plan Purpose of

Event Tasks Time Participating Agencies

Partici- pants Remark

1. Publicizing of RP

RIB distribution Jun. 2012 IA, HSRO,

community /village

All affected

HHs

Distribution of RIB to the affected HHs

2. DMS and Consultation

Meetings with APs

Oct 2013- Nov. 2013

IA, HSRO, Village/Community

All affected

HHs

Confirmation of all asset and landholding loss and list of final APs; Explanation and discussion of entitlements

3. Consultation

Meetings with APs Nov. 2013 IA, HSRO,

Village/Community

All affected

HHs

Discussion and finalization of compensation rates; Discussion and determination of relocation sites and rehabilitation measures

4. Disclose the final RP Distribution Oct 2013 IA, HSRO,

community /village

All affected persons

Distribution of final RP in the affected villages

5. Compensation agreements

Meetings with APs

Oct-Nov. 2013

IA, HSRO, community /village


Drafts compensation contracts; Finalization of compensation delivery scheme.

6. Implemen- tation of final RP in village/ community level

Village/ Communi-ty

meeting Oct 2013 IA, HSRO,

community /village


Discussion and determination on the use of unallocated compensation funds


29

4.3.1 Public Participation in the Project Construction

43. In order to make the affected persons benefit from the project, opportunities or priorities should be given to the local people, especially for construction material supply and employment opportunities.

4.3.2 Women’s Participation

44. Women have the same rights and social status as men have and play a very important role in local socioeconomic development. Hence, the women must have equal participation chances to express their interests, worries, and concerns regarding LA&R and other relevant issues.

45. In the process of RP preparation, DI and HSCMD had consulted women on their concerns and preferences on resettlement and income rehabilitation. Their concerns and suggestions are basically incorporated into this RP.

46. Women will be encouraged to participate in RP implementation and will play a key role in implementing income rehabilitation activities of the RP. Meanwhile, at least one female official shall be commissioned in the land acquisition and resettlement office to enable better communication and participation for women. Some employment opportunities will be provided to women during construction. Again, the gender action plan (GAP) and SDAP of the project will specify such opportunities for women to participate in and benefit from the Project.

4.3 Disclosure of Resettlement Plan

47. The resettlement is a development opportunity. The resettlement plan’s implementation should proceed to ensure all APs' understanding the purpose of the subproject, land acquisition, resettlement, compensation, compensation issued, and the appeal and grievance redress procedures. HSCMD will propagate and publicize RIB to all the APs by June 2012..

4.4 Appeal and Grievance Redress

48. The public participation is always encouraged in the process of preparing and implementing of the RP. There will be always some unforeseeable problems occurring in the process of RP implementation. In order to solve problems effectively and ensure the project construction and land requisition are carried out successfully, a transparent and effective grievance and appeal channel has been set up. The basic procedures for grievance include the following:

(i) If any AP is aggrieved by any aspect of the resettlement, he/she can state his/her grievance and appeal to the VC/CC in oral or in written form. If an oral appeal is made, the VC/CC will record it on paper and process it. The VC/CC will make a decision on or resolve it in two weeks.

(ii) The aggrieved AP can state the grievance and appeal to the township office in oral or in written form. The township office will decide on or resolve it in two weeks.

(iii) If the aggrieved AP is not satisfied with the decision of the township office, he/she can appeal to HSRO of HSCMD or HCLRB after receiving the decision. The HSRO/HCLRB will reach a decision within two weeks.

(iv) If the aggrieved AP is still not satisfied with the decision of the HSRO of HSCMD/HCLRB, he/she can appeal to Liaoning PMO (i.e., EA for all subprojects). After receiving the appeal, Liaoning PMO will reach a decision in two weeks.

(v) If the AP is still dissatisfied with the above decisions or at the very beginning,


30

he/she can appeal to the civil division of a people’s court according to the civil court procedure at any time.

49. APs can also take their case to the civil division of a people’s court at any time. APs can appeal on any aspect of resettlement, including compensation criteria and price. APs will be appraised of their rights for lodging appeals during participation in the public meetings and by receiving RIB. At the same time, the grievance and appeal process will be publicized among the APs through media. The relevant authorities will sort out the opinions and proposals of the APs and the resettlement offices and IA will process the information in a timely and effective manner.

The organizations will accept the grievance and appeals of the APs free of charge, and the reasonable expenses incurred there will be covered by contingency of the RP budget. The aggrieved person may also express grievance to the external monitor, who would then report it to HSRO/HCLRB, HSCMD, and PMO.

50. Alternatively, the aggrieved person(s) may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB's safeguard policy, the APs may appeal directly to ADB in accordance with ADB's Accountability Mechanism (2012).5

5 Before submitting a complaint to the Accountability Mechanism, the affected people should make a good faith effort

to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism - http://compliance.adb.org/.


31

5. Legal Framework and Resettlement Policy

5.1 Laws and Policies Relevant to Resettlement

51. The resettlement policies for the project are formulated based on ADB policies and applicable laws, regulations of China, and policies of Liaoning Province.

5.1.1 ADB Policy Requirements

52. Key ADB policy requirements are the Safeguard Requirements 2: Involuntary Resettlement of the Safeguard Policy Statement (2009).

53. In addition, there are also gender development requirements under ADB’s Gender and Development (June 2003). For this project, including this and another six subprojects, a separate GAP is prepared and will be implemented to complement and enhance the implementation of this RP.

5.1.2 PRC Laws, Regulations, and Policies

54. Applicable PRC Laws, Regulations, and Policies are:

(i) Land Administration Law of the People's Republic of China (Implemented on 1st Jan. 1999, revised on August 28, 2004);

(ii) Decision of the State Council on Deepening Reform and Strengthening Land Administration (Guofa [2004] 28) (October 21, 2004);

(iii) Directive opinions on improvement of compensation and resettlement system for land acquisition (Guotuzifa [2004] 238) (November 3, 2004); and

(iv) Housing Expropriation Regulation 2011.

5.1.3 Main Policies of Liaoning Province and Heishan County

55. The main policies of Liaoning Province and Heishan County are:

(i) Implementation Regulations of Land Administration Law of PRC in Liaoning Province (effective April 1, 2002);

(ii) Notice on Implementation of Regional Integrated Land Price in Land Acquisition in Liaoning Province (No. 2 [2010] Document of Liaoning Provincial Government, effective January 7, 2010);

(iii) Notice on Guiding Compensation Standards for House Demolition in Heishan County (February 2011); and

(iv) Notice on Compensation Schemes of House Demolition on 9# Land in Heishan County(February 2011).

56. All the above laws and regulations6 strengthen the protection for the affected persons whose living conditions may be worsened by the implementation of the subproject.

5.1.4 Policy Objectives

57. Policy objectives include:

6 Main articles of the laws, regulations, and policies of PRC, Liaoning Province, and Heishan County are quoted in Annex II.


32

(i) Avoiding involuntary resettlement wherever possible; (ii) Minimizing involuntary resettlement by exploring project and design

alternatives; (iii) Enhancing, or at least restoring, the livelihoods of all displaced persons in

real terms relative to pre-project levels; (iv) Improving the standards of living of the displaced poor and other vulnerable

groups; and (v) Ensuring affected indigenous people receive culturally appropriate social

and economic benefits.

5.2 Summary of ADB’s Policy Requirements on Involuntary Resettlement

58. The rate of compensation for acquired housing, land, and other assets will be calculated at full replacement costs. The calculation of full replacement cost will be based on the following elements: (i) fair market value; (ii) transaction costs; (iii) interest accrued; (iv) transitional and restoration costs; and (v) other applicable payments, if any.

59. In the case of physically displaced persons, the borrower/client will provide: (i) relocation assistance, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, and civic infrastructure and community services as required; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) opportunities to derive appropriate development benefits from the project.

60. In the case of economically displaced persons, regardless of whether or not they are physically displaced, the borrower/client will promptly compensate for the loss of income or livelihoods sources at full replacement cost. The borrower/client will also provide assistance such as credit facilities, training, and employment opportunities so that they can improve, or at least restore, their income-earning capacity, production levels, and standards of living to pre-displacement levels. The borrower/client will also provide opportunities to displaced persons to derive appropriate development benefits from the project. The borrower/client will compensate economically displaced people for lost assets such as crops, irrigation infrastructure, and other improvements made to the land (but not for the land) at full replacement cost. Special attention will be given to ensure women and vulnerable persons are better off.

61. Involuntary resettlement should be conceived of and executed as part of a development project or program.

62. The borrower/client will provide relevant resettlement information, including information from disclosing on ADB’s website in a timely manner, in an accessible place and in a form and language(s) understandable to APs and other stakeholders. For illiterate people, suitable other communication methods will be used.

5.3 Main Differences between ADB and PRC Policies

63. Table 5-1 gives a comparison between ADB and P.R.C. policy and states the difference in contents.

Table 0-1: Gaps between ADB and PRC Policy Regarding the Involuntary Resettlement

No. ADB Policy on

Involuntary Resettlement

Comparison with PRC Policies

Actual Experience in the

PRC Gap-filling Measures


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1 Avoid resettlement if possible.

Similar. Normally, it can be achieved through alternative options of technical and financial schemes.

In practice, the quantity of land acquired in the PRC each year is very large due to the broad scope and use of eminent domain.

Efforts were made to minimize LAR impacts during FSR and further efforts will be made during detailed design.

2

If unavoidable, the provision of rehabilitation measures should be implemented to restore incomes and livelihoods.

Similar. People’s Governments at the county level and above shall adopt practical measures to ensure that the farmers whose land is acquired shall not be made worse off.

In practice, cash compensation is provided rather than rehabilitation support.

Specific rehabilitation and support measures are included in this RP.

3

The lost property should be compensated at the replacement value.

Similar.

Provision of compensation and subsidies. Land value is based on a multiple of annual gross output value and housing is assessed based on appraisal

Sometimes, housing appraisal include depreciation based on age.

No depreciation based on age will be permitted for house valuations.

4

The affected persons are fully aware of the resettlement and land acquisition and they are fully consulted with.

Difference. In the PRC, the information disclosure usually takes place after RP approval.

APs want to have better information at earlier stages to ensure compensation and rehabilitation measures are acceptable.

ADB procedural requirements for consultation and disclosure are being followed.

5 Social and cultural sensitive

Similar. The policy has been trialed before being applied. The PRC is very experienced in this regard.

The PRC approach is equal treatment based on physical losses rather than socio-cultural impact. Normally, vulnerable groups are assisted through existing local government programs.

This RP follows ADB policy to conduct social impact assessment and formulate measures based on degree of impacts, particularly for women and vulnerable groups.

6

APs with lack of land or property ownership rights should still be eligible for compensation and rehabilitation; although ADB does

Some difference. In the PRC, people without land ownership for house plots do not get compensated for land, but the structure compensation is negotiated, if the rates under the legal provisions

This is one of the most difficult LAR issues to address. Practical solutions must be found in lieu of local regulations. Some municipalities are

This project doesn’t have this issue.


34

not require compensation for land in such cases, solutions must be found to ensure APs are no worse off

are not adequate. more progressive.

7 Confirmation of the compensation entitlement

Similar.

Sometimes, no cut-off date is stipulated or it is not adequately disclosed or enforced.

This RP includes a cut-off date. Two notifications will be given to APs, and the entitlements will be disclosed prior to LAR and results of compensation agreements and fund use made transparent in each village.

8

All the resettlement costs should be included into the project cost.

Some differences. Also refer to Article 12 of No.28 Decree. The total resettlement cost of the national key development project should include in the total project cost estimate.

All compensation and administrative costs are included. Some rehabilitation measures are covered by local government. There is no requirement or budget for external monitoring.

All the related resettlement costs and sources of funding are specified in the RP. External monitor costs have been added as per ADB requirements.

9 Monitoring and evaluation on resettlement

Although the policy states the Project should assist the affected people for their housing and income recovery, there is no requirement for socio-economic monitoring.

Often, the government’s responsibility for rehabilitation ends when compensation is paid. There is no follow-up monitoring to assess whether APs are better off.

This RP includes a rigorous monitoring and evaluation process, including internal and independent (external) processes.

5.4 Compensation Standards 5.4.1 The Compensation Standards for Permanent Land Acquisition 64. The compensation standards for permanent land acquisition follow laws and policies of: (i) Implementation Regulations of Land Administration Law of PRC in Liaoning Province; (ii) Notice on Implementation of Regional Integrated Land Price in Land Acquisition in Liaoning Province. The land compensation standards are shown in Table 5-2.

65. The compensation standard for standing crops is 1,500 CNY/mu.

66. The relevant taxes and fees are as following: (i) 28 CNY/m2 of farmland occupation tax; (ii) 10 CNY/m2 of farmland reclamation fee; (iii) 16 CNY/m2 of the utilization fee of new construction land; and (iv) 1.35 CNY/m2 of land acquisition management fee.


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Table 5-2: Land Acquisition Compensation Standards7

Land Type Area Class

Land Compensation

(CNY/mu)

Resettlement Compensation

(CNY/mu) Final Standard

(CNY/mu)

Farmland

Chengguan Vilalge, Dongguan Village, Nanguan

Village,

Class One 18,750 11,250 30,000

Xiawanzi Village Class Two 15,625 9,375 25,000

Housing Plot

Chengguan Village, Dongguan Village, Nanguan

Village, Huangjiaao Village

Class One 30,000

Xiawanzi Village Class Two 25,000

Wasteland

Chengguan Vilalge, Dongguan Village, Nanguan

Village, Huangjiaao Village

Class One 24,000

Xiawanzi Village Class Two 20,000 Enterprise

Land Nanguan Village Class One 30,000

5.4.2 Compensation Standards for Urban and Rural Houses 67. Guided by Notice about the Guideline on the Compensation Price for House Acquisition in Heishan County and Notice about the House Acquisition Compensation Plan of 9# Land in Heishan County, all the APs (urban and rural within the urban planning area) will get cash compensation on replacement price for affected houses and house attachments, or they can also choose replacement apartments with the same house area as compensation.

68. Cash compensation and subsidies paid to the APs include: (1) compensation for houses; (2) compensation for house attachments8; (3) transition subsidy; (4) transport subsidy. The detailed compensation rates are shown as Table 5-3.

Table 5-3: Compensation Standard for Houses and House Attachments

Item Unit Compensation standard Note

Compensation for house

Brick-concrete structure (Urban) CNY/m2 2,300

Brick-concrete structure (Rural) CNY/m2 1,890

Brick-wood structure (Rural) CNY/m2 1,800

Compensation for house

attachments

Wall CNY/m 150

Green house CNY/m2 500

Well CNY 1,500

7 Compensation standards in Table 5.2 and 5.3 has been discussed and agreed with village collectives and APs. 8 APs can get compensation for house attachments even they choose replacement houses as compensation.


36


Door CNY 500

Fruit trees CNY 120

Fish pond CNY 200,000

Henhouse and piggery CNY/m2 500

Rural simple shanty CNY/m2 990

Other compensation

Transport subsidy CNY/HH 300

Transition subsidy CNY/

m2 /Month

10 Six months’ compensation or based on actual period if choosing replacement house)

Award CNY/m2 100

100 CNY/m2 as award if agreement signed within 7 days; there is a 3 CNY decrease per square meter per day from the eighth day

Note: The compensation standard is directive price in 2010. Actual compensation rate is based on house evaluation. 5.4.3 Compensation Standards for Enterprises 69. Details are presented in Table 5-4.


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Table 5-4: Compensation Rate for the Affected Enterprises


Compensation for house (brick-concrete) CNY/m2 3,800

Compensation for business interruption CNY Agreement after negotiation

Compensation for facilities CNY Agreement after negotiation

Other compensation

Transition subsidy CNY/ m2/month 20 12 months’ subsidy

Transport subsidy CNY 300 For large equipment of a large amount of stock, the subsidy will be negotiated.

Wages of workers

Compensation for wages of affected workers will be included into business lose, which will be based on independent evaluation.

Award CNY /m2 100

100 CNY/m2 as award if agreement signed within 7days; there is a 3 CNY decrease per square meter per day from the eighth day

Compensa- tion for land Collective land CNY/mu 30,000 To the village collective

Note: The compensation standard is directive price in 2010. Actual compensation rate is based on house evaluation.

5.4.4 Compensation Standard for Ground Attachments and Infrastructure 70. Table 5-5 presents the compensation standard for ground attachments and infrastructure.

Table 5-5: Compensation Standard for Ground Attachments and Infrastructure

Item Unit Compensation standard Wall CNY/m 150

Fruit tree CNY 120

5.5 Compensation Entitlement 71. All people or entities (public or private) are entitled to compensations for the affected properties (land, houses, buildings, crops or income sources) confirmed during DMS.

72. The cutoff date for eligibility of entitlement is set on the date of conducting DMS. All the eligible property losses will be compensated. Table 5-6 presents the entitlement matrix.

TA 7621-PRC: Integrated Development of Key Townships in Central Liaoning Heishan Subproject Resettlement Plan

38

Table 5-6: Entitlement Matrix Type of Impact

Degree of Impact Entitled Person Compensation and Resettlement Policy Implementation Measurements

Permanent land acquisition

a) 175.42 mu of farmland; b) 20.68 mu of housing plot; c) 7.96mu of village construction land d) 23.93 mu of other land; e) 2.33 mu of enterprise land

a) 44 HHs in 4 villages b) 4 VC

Compensation standard for farmland and housing plot is 30,000 CNY/mu (including resettlement compensation of 11,250 CNY/mu) in Chengguan Village, Dongguan Village, Nanguan Village, and Huangjiahao Village; Compensation standard for farmland and housing plot is 25,000 CNY/mu (including subsidy of 9,375 CNY/mu) in Xiawanzi Village; Compensation standard for other land is 24,000 CNY/mu in Chengguan Village, Dongguan Village, Nanguan Village and Huangjiahao village; and it’s 20,000CNY/mu in Xiawanzi Village Compensation standard for enterprise land is 30,000 CNY/mu in Nanguan Village.

80% of land compensation funds and 100% resettlement compensation will paid to the affected HHs in Dongguan Village and Nanguan Village; the VC will keep 20% of the land compensation and use it for providing assistance for APs or improving agricultural infrastructure conditions and welfare of the whole villagers. HHs affected by farmland acquisition in Chengguan Village will be compensated by 8,667 CNY/mu and the rest compensation (21,333 CNY/mu) will be kept by the collective for constructing infrastructures and improving the welfare of the whole village (e.g., 600 CNY per year to villagers over 60).

House and house attachment demolition

a) 5216.53 of m2

rural house area; b) 1102.65 m2 of urban house area; c) various objects

33 HHs in 4 villages and 14 HHs in 3 communities

2,300 CNY/m2 for urban brick-concrete structure; 1,890 CNY/m2 for rural brick-concrete structure and 1,800 CNY/m2 for rural brick-wood structure; Transport subsidy: 300 CNY/HH of transport subsidy Transition subsidy: 10 CNY/m2/month for 6 months (transition subsidy is based on actual period if choosing replacement house). Award: 100 CNY/m2 as award if signing agreement within 7days; three CNY/m2 decrease per day from the eighth day Ground attachment: 1,100 CNY/m2 for simple shanty; 500 CNY for a door; 150 CNY/m for wall; 120 CNY for a fruit tree; 500 CNY/m2 for a henhouse/piggery; 500 CNY/m2 for a greenhouse; 1,500 CNY for a well; 200,000 CNY for a fish pond.

Cash compensation will be based on replacement price. APs will be resettled in Cuichanmingdu Community if they choose replacement houses, which will be based the principle “one sqm replacement by one sqm demolition”. If the demolished house is smaller than 45 m2, the affected HH can get replacement house of 45 m2; if APs want to get replacement house of 60 m2, they need to pay for the gap area at a preferential price of 1,000 CNY/m2.

Enterprise demolition

3,185.77 m2of building area 3 enterprises

Compensation for houses: 3,800 CNY/m2; Compensation for business interruption and facilities will be determined through negotiation. Other compensation: 20 CNY/m2/month of transition subsidy (12 months), 300 CNY of transport subsidy; Award: 100 CNY/ m2 as award if signing agreement within 7 days; three CNY/m2 decrease per day from the eighth day.

2 of the 3 affected enterprises need to move to other places. HSCMD is responsible for looking for the replacement location.


39

Type of Impact

Degree of Impact Entitled Person Compensation and Resettlement Policy Implementation Measurements

Ground attachments and infrastructure

1,203 m of wall and 2,184 fruit trees

Relevant units Cash compensation: 120 CNY per fruit tree; 150 CNY/m of wall. Notice should be sent out at least one month before the actual demolition.

Women, Besides compensation for property losses, special assistance will be provided, including: training (i) ;aquaculture; and (ii) non-farm employment.

HCCAB, Women’s federation, and HSCMD have promised to provide training and to support the income and livelihood rehabilitation of affected women.

Vulnerable Groups 4HHs

Besides compensation for property losses, special assistance will be provided, including: (i) provision of social insurance; and (ii) moving priority.

HCCAB, Women’s federation, and HSCMD have promised to support the income and livelihood rehabilitation of affected vulnerable HHs.


40

6. House Relocation and Income Rehabilitation 6.1 House Relocation 6.1.1 Resettlement of HHs Affected by House Demolition 73. As explained in 5.4.2, APs have two options on compensation: (i) cash compensation, and (ii) replacement houses. If they choose cash compensation, HSCMD will pay a lump sum of compensation to them after house evaluation by qualified agency. And if APs prefer replacement houses, they will be resettled in a residential community (Cuicanmingdu), which is under construction.

74. According to the survey, six affected rural HHs choose cash compensation and 41 HHs prefer replacement houses as compensation.

75. Six out of 47 HHs selected cash compensation and can get a compensation rate of about 3,000 CNY/m2 if counting and averaging all types of compensation and subsidies including housing plot land, transition and moving allowance. While the housing market price currently in the affected villages is 2,000 CNY/m2 (including counterpart facilities in yard and housing plot) and the market price of apartment in urban area is about 3,200 CNY/m2; the market price for second hand apartment is about 2,800 CNY/m2. So they can afford to buy either rural houses or urban apartment after being compensated.

76. The 41 affected HHs choosing replacement houses can get the new houses based on the principle that “one square meter replacement for one square meter demolition”. For affected households whose current house area is larger than 45m2 but less than 60 m2, they can get one apartment with 45 m2, and save the remaining house compensation, or get an apartment with 60 m2, and pay for the exceeding area at a preferential price of 1,000 CNY/m2. For affected households whose current house area is larger than 60m2 but less than 100 m2, they can get one apartment with 60 m2, and save the remaining house compensation, or get two apartments with two 45 m2 or one 45 m2 and one 60 m2, and pay for the exceeding area at a construction cost. For affected households whose current house area is larger than 100 m2, they can get three apartments, and pay for the exceeding area at a construction cost. For affected households whose current house area is less than 45 m2, they can move into apartments with 45 m2, and if they want to get houses with the area of 60 m2, they just need to pay for the exceeding area at a preferential price of 1,000 CNY/m2. Basic information of the planned community is presented in Table 6-1.

Table 6-1: Information of Cuicanmingdu Community

Name Construction area (10,000

m2) Total

apartmentsApartment area (m2)

Distance to the

original house (km)

Construction status/completion

time

Cuichanmingdu 5.7 681 55-120 1.0 June 2012

6.1.2 Resettlement of Enterprises 77. The nursing home will be only affected by dining room demolition. There will be no impacts on its daily business. They will get cash compensation according to the replacement price.

78. The other two auto repairing workshops will be fully demolished. They will get compensation for building and facility demolition, business interruption and subsidies. Since they are small workshops, one floor for them should be sufficient. HSCMD has promised to resettle them in Cuichanmingdu Community.


41

6.2 Income Rehabilitation 6.2.1 Compensation Fund Utilization by the Collective 79. The VC of Dongguan Village and Nanguan Village will keep 20% of the land compensation and use it for providing assistance for APs or improving agricultural infrastructure conditions and welfare of the whole villagers.

80. HHs affected by farmland acquisition in Chengguan Village will be compensated by 8,667 CNY/mu and the rest compensation (21,333 CNY/mu) will be kept by the village collective for constructing infrastructures and improving the welfare of the whole village (e.g., 600 CNY per year to villagers over 60). Since year 2006, the village committee and villagers have made such an agreement. The agreement has been effective for all land acquisition and resettlement in the village, including our project.

6.2.2 Compensation Utilization by Individual HH 81. Through discussion and consultation with the affected HHs, HSCMD learnt that the affected 44 HHs prefer three ways to restore their income as follow:

(i) Non-farm employment. 36 HHs plan to save the compensation in bank and go for more migrant works such as construction, transportation, housekeeping, repairing, weaving and etc. According to survey, on average, each person could work for at least eight months a year and the monthly salary is about 1,000 CNY. So the total annual income from migrant works will reach 8,000 CNY.

(ii) High-value agriculture. Four HHs plan to invest their compensation in agricultural productions, such as vegetable greenhouse. Normally, the initial investment in greenhouse will be 20,000-30,000 CNY and the average annual net earnings could be around 8,000-15,000 CNY.

(iii) Small business. Four HHs plan to do business, such as grocery and vegetable trading by using the compensation because they live near the urban area. It is expected that the annual income from these businesses could reach 10,000 CNY.

6.2.2.1 Rehabilitation of Affected HHs of Dongguan Village

82. 13 affected HHs will lose a total of 43.6 mu farmland, or 3.35 mu per household. Out of them, three households will lose 10 to 30% of their total farmland, while other 10 households will lose 30 to 50% of their farmland. However, only two households’ income loss is between 10 and 20%, while other 11 households’ income loss is less than 10% because agricultural income accounts for about 26% of their total income. After the land acquisition, they still have 6.4 mu farmland per household in average.

Table 6-2: Farmland Loss and Compensation of Dongguan Village

No. Affected HHs Farmland Acquired

Acquired Land per HH

Total Compensation

Compensation per HH

HH mu mu/HH CNY CNY/HH 13 43.6 3.35 1,144,500 88,038

83. Each affected household can receive 88,038 CNY of farmland compensation. If they deposit the compensation into a bank, they can receive 3,081CNY per year of bank interest, which is almost the same to their net income from farmland. In fact, they have different ways to restore their living conditions.

84. According to consultation with the affected households, 10 out of the 13 households have had non-farm work experience. They like to save the compensation in bank and continue their


42

non-farm work in Jinzhou city or Liaoning province. They work in maintenance and repair, transportation, construction, and housekeeping, etc. sectors. Due to reducing time spending in agricultural production, they can work on non-farm work for about eight months and earn 12,000CNY annually. Two of affected households plan to invest in farm work. They like to establish greenhouse to produce vegetables. The initial investment is about 25,000 to 30,000 CNY, and annual net income is about 10,000 to 15,000 CNY. The remaining one plans to operate a small shop and earn about 10,000 CNY annually.

6.2.2.2 Rehabilitation of Affected HHs of Nanguan Village

85. 14 affected HHs will lose a total of 13.03 mu farmland, or 0.93 mu per household. Out of them, 12 households will lose 10 to 30% of their total farmland, while other two households will lose 30 to 50% of their farmland. However, their income loss is 4.91% of total income in average household because agricultural income accounts for about 28% of their total income. After the land acquisition, they still have 4.0 mu farmland per household in average.

Table 6-3: Farmland Loss and Compensation of Nanguan Village



Total Compensation

Compensation per HH

HH mu mu/HH CNY CNY/HH 14 13.03 0.93 342,116 24,437

86. Each affected household can receive 24,437 CNY of farmland compensation. If they deposit the compensation into a bank, they can receive 855CNY per year of bank interest, which is almost the same to their net income from lost farmland. In fact, they have different ways to restore their living conditions.

87. According to consultation with the affected households, 11 out of the 14 households have had non-farm work experience. They like to save the compensation in bank and continue their non-farm work in Jinzhou city or Liaoning province. They work in maintenance and repair, transportation, construction, and housekeeping, etc sectors. Due to reducing time spending in agricultural production, they can work on non-farm work for about eight months and earn 12,000CNY annually. One of 14 affected households plan to invest in livestock. This household likes to invest about 20,000 to 25,000 CNY initially, and annual net income is about 10,000 to 15,000 CNY. After two or three year, they can receive all investment and earn more money. The remaining two households plan to operate a small shop or vegetable sales station and earn about 10,000 CNY annually.

6.2.2.3 Rehabilitation of Affected HHs of Chengguan Village

88. Nine affected HHs will lose a total of 64.01 mu farmland, or 7.11 mu per household. Out of them, three households will lose 10 to 30% of their total farmland, while other six households will lose 30 to 50% of their farmland. However, their income loss is 8.89% of total income in average household because agricultural income accounts for about 26% of their total income. After the land acquisition, they still have 23.4 mu farmland per household in average.

Table 6-4: Farmland Loss and Compensation of Chengguan Village



Total Compensation

Compensation per HH


89. Each affected household can receive 90,532 CNY of farmland compensation. If they deposit the compensation into a bank, they can receive 3,169CNY per year of bank interest, which is lower than their net income from lost farmland. However, in fact, they have different ways to restore their living conditions.


43

90. According to consultation with the affected households, seven out of the nine households have had non-farm work experience. They like to save the compensation in bank and continue their non-farm work in Jinzhou city or Liaoning province. They work in maintenance and repair, transportation, construction, and housekeeping, etc sectors. Due to reducing time spending in agricultural production, they can work on non-farm work for about eight months and earn 12,000CNY annually. One of affected households plan to invest in farm work. The household likes to establish greenhouse to produce vegetables. The initial investment is about 25,000 to 30,000 CNY, and annual net income is about 10,000 to 15,000 CNY. After two or three year, they can receive all investment and earn more money with high value agriculture production. The remaining one households plan to operate a vegetable sales station and earn about 10,000 CNY annually.

6.2.2.4 Rehabilitation of Affected HHs of Xiawanzi Village

91. Eight affected HHs will lose a total of 12.14 mu farmland, or 1.52 mu per household. Out of them, one household will lose less than 10% of his/her total farmland. Six households will lose 10 to 30% of their total farmland, while the remaining one household will lose 30 to 50% of their farmland. However, their income loss is 5.8% of total income in average household because agricultural income accounts for about 34% of their total income. After the land acquisition, they still have 7.37 mu farmland per household in average.

Table 6-5: Farmland Loss and Compensation of Xiawanzi Village



Total Compensation

Compensation per HH


92. Each affected household can receive 37,942 CNY of farmland compensation. If they deposit the compensation into a bank, they can receive 1,328CNY per year of bank interest, which is almost the same to their net income from lost farmland. In fact, they have different ways to restore their living conditions.

93. According to consultation with the affected households, all eight households have had non-farm work experience. They like to save the compensation in bank and continue their non-farm work in Jinzhou city or Liaoning province. They work in maintenance and repair, transportation, construction, and housekeeping, etc sectors. Due to reducing time spending in agricultural production, they can work on non-farm work for about eight months and earn 12,000CNY annually.

94. Table 6-6 gives the summery by each affected village.

Table 6-6: Income Rehabilitation Solutions

Village

HHs affected by farmland acquisition

Affected HHs

Non-farm employment

(HHs) Invest in agricultural

activities (HHs) Invest in small

businesses (HHs)

Dongguan Village 13 10 2 1

Nanguan Village 14 11 1 2

Chengguan Village 9 7 1 1

Xiawanzi Village 8 8 0 0

Total 44 36 4 4


44

6.2.3 Employment in Non-farm Sector 95. There are more than 20 enterprises in Penghe Industry Park in Heishan Economic Development Zone, covering pharmacy, health products, logistics and services etc. According to the HCHRSSB statistic data, there will be 400 new employment opportunities in 2012 (including 250 for men, and 150 for women).

96. The local government will arrange the affected 240 persons (140 male labors and 100 female labors) to work in these enterprises if they want after relevant skill training.

97. The average salary in this area is 1,000 CNY/month for a woman; annual salary income will be 12,000 CNY, which is 12 times of AAOV or 20 times of net income from 1 mu of farmland as estimated by HCHRSSB.

6.2.4 Employment Opportunities during Project Construction 98. During subproject construction period, some unskilled labor will be required. HSCMD will coordinate with contractors to employ APs to the maximum extent.

99. According to the preliminary estimations, the subproject will provide about 200 unskilled positions with an average monthly salary of 1,000 CNY during construction period. Among which at least 15% of the position will be provided to ethnic minorities and at least 20% will be provided to woman.

6.2.5 Skill Training Plan for Affected Persons 100. A serial of skill trainings will be provided to APs to help them rehabilitate their income. A total of 150,000 CNY has been assigned in the RP as skill trainings budget. All APs can join the skill training which include: (i) High-value agriculture such as peanut, sweet potatoes, etc; (ii) Livestock such as chicken, pig and cow; (iii) Weaving and sewing skill (particularly for women); (iv) Construction such as concrete mixers, concrete pouring workers, drivers, etc.; (v) Cuisine and baking skills.

101. Since the most labors of the affected HHs are engaged in simple work that doesn’t need training, the skill trainings are mainly for rural labos, especially for women. 110 APs will join trainings according to consultation, of which 50% are women (shown in Table 6-7).

102. The skill trainings will be started once the LA&R are completed. It is expected that the trainings will commence in February 2014.

103. The Heishan County Human Resource and Social Security Bureau together with the Women’s Federation will be responsible for organizing and implementing the skill trainings.

Table 6-7: Training Plan Training course Organizer No. Of APs Location

1. Livestock – pig, chicken and cow

HCHRSSB

15 (8 female)

5 affected villages

2. High-value agriculture –greenhouse vegetable 15 (8 female)

3. Building construction 60 (5 female) 4. Weaving and sewing skill training 15 (fermale) 5. Cuisine and baking, and business operation 5 (2 female)

Total 110


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7. Institutional Arrangement 7.1 Institution 104. The Project Management Office (PMO) of Liaoning Province is the executing agency (EA) of the overall project that has seven subprojects including this one. Heishan County Municipal Management Department is the implementing agency (IA) and Heishan subproject resettlement office (HSRO) will be established under HSCMD to carry out actual LA&R and manage the resettlement issues with support from Heishan County Land Resource Bureau (HCLRB) and with assistance of township office and affected villages/community. The institutional setup is shown in Figure 3.

Figure 3 Institutional Arrangement for Resettlement

7.2 Responsibilities 105. The responsibilities of relevant agencies are shown in Table 7-1.

Table 7-1: Responsibilities of Relevant Agencies Agency Responsibilities

PMO

Coordinating subproject to prepare RP and carry out internal M&E Submitting implementation progress reports to ADB Entrusting external monitor Forward/Submit Internal and External Monitoring reports to ADB.

HSCMD

Preparing RP Organizing public consultation and participation Disclosing resettlement information, including distribution of RIB Supervising resettlement fund payment Coordinating and supervising resettlement activities and progress Carrying out internal M&E and report the PMO Settling conflicts and problems

HCRO under HCMMD

Liaoning PMO

HCLRB Township Office

APs, Affected Villages/Communities

External Monitor


46

Agency Responsibilities

HCLRB

Making relevant LA&R polices Take part in RP preparation Issue land occupation license for the subproject Directing, coordinating and monitoring land acquisition and resettlement activities Settling conflicts and problems

HSRO

Take part in RP preparation, reviewing and approving RP Comforting AP’s grievance Implementing RP Applying relevant resettlement procedures Signing resettlement compensation agreements with APs

Township Office

Assisting HSCMD, HSRO and HCLRB to carry out LA&R in a transparent way Solving conflicts and problems Reporting to HSRO or HCLRB on problems without resolution at township

Village/Community Committee

Participating in socio-economic survey Participating in preparation of resettlement plan Assisting HSCMD for public consultation Assisting LA&R Office to implement RP Reporting AP’s opinions and suggests to authorities Providing assistance to vulnerable HHs

External Monitor Providing the technical support to land acquisition and resettlement Monitoring RP implementation reporting to PMO

7.3 Capacity Building

7.3.1 Resettlement Staff Training

106. The PMO will organize a series of trainings for subproject resettlement staffs on: (i) ADB’s policy requirements on involuntary resettlement, (ii) national polices; and (iii) good practices of similar projects in Liaoning and other provinces. The training will start in October 2013.

107. ADB will be requested by PMO to provide assistances to train the resettlement staffs.

7.3.2 Measures to Strengthen the Capacity Building

108. In additional to the various training arrangements, the following measures will be taken to strengthen the capacity building:

(i) EA and HSCMD will have sufficient staff, fund, and equipment;

(ii) EA and HSCMD will establish resettlement-related database; and

(iii) HSCMD will organize quarterly coordination meetings among all involved agencies.


47

8. Monitoring & Evaluation 109. LPMO and HSCMD will undertake the monitoring and evaluation (M&E) on the implementation of RP according to the ADB requirements. There will be both internal M&E (undertaken by EA and HSCMD) and the external M&E (undertaken by an independent agency).

8.1 Internal Monitoring & Evaluation

110. Internal monitoring will be basically focused on resettlement progress. HSCMD, as the implementation agency of this subproject, will carry out internal monitoring with the assistances of HCLRB, HSRO, township offices, affected communities and villages. LPMO will coordinate and supervise the internal monitoring.

111. During RP implementation, IA will report to PMO quarterly and the latter will then submit an internal monitoring report or progress report that covers all subprojects to ADB quarterly. In such reports, the statistical data of the past 3 months will be tabulated to reflect progress through comparison of the actual and planned use of the land acquisition, resettlement and compensation fees. Table 8-1 and Table 8-2 provide some sample formats.

Table 0-1 Implementation Progress

______, ______ Township/Subdistrict, Heishan County Cut-off date: MM/DD/YY Reporting period:

Item Unit Plan & implementation

during this reporting period Accumulative total

Plan Implementation % Plan Implementation % Permanent land acquisition Mu House demolition area m2 House demolition HH Enterprise demolition area m2 Enterprise demolition No. Payment of land compensation CNY Compensation for house demolition CNY Relocated HH HH Compensation of enterprise demolition

CNY

Compensation for enterprise workers HH Staff training Person Skill training Male Person

Female Person Job arrangement Male Person

Female Person Reported by: Signature (person responsible): Date: Official seal:

Table 0-2 Fund Use ______, ______Township/Subdistrict, Heishan County Cut-off date: MM/DD/YY Reporting period:

Township/Subdistrcit Compensation disbursement during

this reporting period (CNY) Accumulative total

Plan (CNY) Actual (CNY) % Plan (CNY) Actual (CNY) %


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Heishan Zhenan Total Reported by: Signature (person responsible): Date: Official seal:

112. Internal M&E will continue for about 2 years after completion of LA&R with focus on livelihood rehabilitation of APs. During this period, PMO (i.e., all IAs) only needed to report to ADB once a year.

8.2 External Monitoring and Evaluation

113. LPMO will engage an independent agency to carry out the external monitoring and evaluation on resettlement for the whole project (i.e, Integrated Development of Key Townships in Central Liaoning), including this subproject as per ADB requirement. The external monitor will make follow-up monitoring and evaluation of resettlement activities and provide advisory opinions. It will also make follow-up monitoring of the level of production and livelihood rehabilitation of AP, and semi-annual reports to the PMO and ADB. The TOR (terms of reference) for external monitoring is presented in Annex III.

8.2.1 Scope and Methods

8.2.1.1 Baseline Survey 114. The external monitoring agency will make a baseline survey of the affected communities/villages and HHs. The baseline data include the production level and standards of living of AP. Typical sample survey will be applied (sample size: 10-20% of severely affected HHs and a number of others, such as vulnerable ones). The baseline survey, as well as the follow up monitoring and post-project evaluation, will cover and not limited to the following socioeconomic indicators of targeted HHs:

(i) Level of education of adults by gender (ii) Employment status of adults by gender (iii) Land area by type (iv) House type (quality) (v) Housing area (vi) Income by source (vii) Expenditure by type (viii) Major assets ownership (ix) Cropping pattern (cultivated area of each crop)

(x) Compensation to village committees and its use.

8.2.1.2 Regular Monitoring and Evaluation 115. During the implementation of the RP, the external monitoring agency will monitor the following indicators (fully or partly) twice a year:

(i) Disbursement and amount of compensation fees; (ii) The survey and coordination of and suggestions for key issues of AP and the

implementing agency during implementation;


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(iii) The restoration and resettlement of the vulnerable groups, support to the vulnerable groups;

(iv) Restoration and reconstruction of ground affiliated and special facilities; (v) Resettlement and restoration of production and livelihoods; (vi) Compensation for property losses; (vii) Schedule for the above activities (applicable at any time); (viii) Use of compensation fees for land and income of the displaced persons； (ix) Increase in employment income of labor; (x) Whether the affected people benefit from the project; (xi) Degree of satisfaction or problems identified; (xii) The degree of participation and consultation of AP during implementation; and (xiii) Resettlement training and its results.

116. Tracer surveys, using the baseline survey questionnaire, will be applied to assess the change in living standard, livelihoods and income. This will be the basis to determine whether resettlement has been successfully completed.

8.2.1.3 Public Consultation 117. The external monitoring agency will attend some of the public consultation meetings to be held during the implementation of resettlement. By attending these meetings, the external monitoring agency can evaluate the results of public participation.

8.2.1.4 Complaints 118. The external monitoring agency will visit the affected villages regularly, and inquire of the township governments and the implementing agencies regarding the reporting and disposition of complaints. In the meantime, it will also meet complainants and propose corrective measures and suggestions for outstanding issues.

8.2.2 Reporting

119. Internal M&E reports will be submitted to LPMO quarterly by the subproject IA while the external monitoring and evaluation reports will be submitted to LPMO and ADB every six months by the external monitor. The external monitoring and evaluation (M&E) reports will be continued once every six months after the completion of the resettlement until the resettlement tasks are completed. These reports will also be submitted to ADB every six months and uploaded onto the ADB website. Annual evaluation reports will also be prepared by the external monitor once every 12 months until the project completion. After the project completion, LPMO should submit to ADB the resettlement completion report. The reporting schedule is shown in Table 8-3.

Table 8-1: Reporting Schedule of External Monitor

No. Report Date

1 Signing contract with independent monitoring agency and

preparing ToR of M&E. October 2013

2

Preparing work plan of external M&E, including: preparing ToR

of survey and form; establishing monitoring system; confirming

tasks; and confirming monitoring points.

November 2013

3 Baseline survey report December 2013

4 1st monitoring report February 2014

5 2nd monitoring report August 2014

6 3rd monitoring report February 2015


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No. Report Date 7 4th monitoring report August 2015

8 Evaluation/Completion report for the whole Project December 2016

9. Resettlement Implementation Schedule 9.1 Principles for Resettlement Implementation 120. The basic implementation principles of resettlement are:

(i) Land acquisition should be completed three months before the commencement of construction.

(ii) During resettlement, APs should have opportunities to participate in the activities. Before the commencement of construction, the scope of land acquisition will be disclosed, and various methods will be used to ensure public consultations and participations.

121. All types of compensations should be paid to property owners directly in full within three months from the date of approval of the land acquisition compensation and resettlement plan. No entity or individual should use the compensation fees for properties on their behalf, and such fees should not be discounted during disbursement for any reason.

9.2 Resettlement Implementation Schedule 122. According to the implementation schedule of the subproject, the construction works will commence in 2013 and be completed in 2015 or so. To ensure that the resettlement implementation is linked up to the construction schedule, acquisition of land and buildings and monitoring will start from January 2013 and end in December 2015.

123. The general resettlement implementation schedule of the subproject has been developed and the specific arrangements may be adjusted in case of variations. The implementation and supervision milestones are shown in Table 9-1.

Table 9-1: Resettlement Implementation Schedule


Completion Deadline

1. Capacity Building 1.1 Establishment of HSRO under HSCMD HSCMD Aug 2012 1.2 Designate village authorities HSCMD Oct 2013 1.3 Staff training PMO Oct 2013

2. Consultation and Information disclosure

2.1 Distribution of RIB among APs 90 copies HSCMD June 2012

2.2 RP distribution to affected villages/community, township and relevant government agencies

8 copies HSCMD

July 2012

2.3 Submit RP to ADB for acceptance PMO/ADB May 2012 3. RP Updating Based on DMS

3.1 DMS HCLRB,

HSCMD and DI

September 2013

3.2 Finalizing RP and submit to ADB HSCMD October 20134. Compensation agreements


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Completion Deadline

4.1 Agreements with Community/village committee

8 villages/ Communities


February 2014

4.2 Agreements with affected HHs/enterprises 90 HHs


February 2014

5. Resettlement and Rehabilitation 5.1 Moving to new houses VC, HSCMD March 2014 5.2 Start Civil works HSCMD April 2013 6. M&E 6.1 Internal monitoring HSCMD 2013-2016

6.2 External monitoring External monitor 2013-2016

6.3 Internal monitoring report Quarterly HSCMD and

PMO 2013-2016

6.4 External monitoring report Semi-annually External monitor 2013-2016

6.5 Resettlement completion report

External monitor

monitor/PMO

Dec 2016


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10. Budget for Resettlement and Compensation

10.1 Budget

124. The resettlement budget of the subproject is 64.5767 million CNY, accounting for 17.6% of the total investment (366.844 million CNY).

125. The budget includes: (i) 6.9286 million CNY of compensation for land acquisition and standing crops; (ii) 39.0217million CNY of compensation for house and enterprise demolition; (iii) 0.4425 million CNY for ground attachment/infrastructures; (iv) 1.7238 million CNY for M&E, management, and training fees; (v) 7.18 million CNY of taxes and other fees; and (vi) 9.2786 million CNY for contingency. Costs of grievance resolution and carrying out consultations for finalizing and implementing the RP is included in the contingency.

126. The detailed resettlement budgets for land acquisition and resettlement of the proposed project is shown in Table 10-1.

Table 10-1: Resettlement Budget

No. Item Quantity Unit Compensation Standard (CNY) Cost (104 CNY)

A. Basic Cost 4,639.29

I. Land acquisition & resettlement 230.33 692.86

1 Land compensation 175.42 Mu 520.20

1.1 Chengguan Village, Dongguan Village, Nanguan Village and Huangjiaao Village 163.28 Mu 30,000 489.85

1.2 Xiawanzi Village 12.14 Mu 25,000 30.35

2 Housing plot compensation 28.64 Mu 81.94



3 Compensation of other lands 23.93 Mu 57.42



4 Compensation for enterprise land 2.33 Mu 30,000 6.99

5 Young crops compensation 175.42 Mu 1,500 26.31

II Demolition and resettlement 3,902.17

1 Demolition of rural residential houses 2,179.57

1.1 House compensation 5,216.53 m2 966.06

Brick-concrete structure 3,009.67 m3 1,890 568.83

Brick-wood structure 2,206.86 m2 1,800 397.23

1.2 Compensation for attachments 1,129.06

Simple shanty 3,929.95 m2 990 389.06

Wall 501.50 m 150 7.52

Greenhouse 9,874.5 m2 500 493.73

Well 36 1,500 5.40

Door 37 500 1.85

Fruit tree 44 120 0.53


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Fish pond 6 200,000 120.00

Henhouse and piggery 2,219.32 m2 500 110.97

1.3 Other compensation 84.45

Transport subsidy 33 HH 300 0.99

Transition subsidy 5,216.53 m2 60 31.30

Awards 5,216.53 m2 100 52.17

2 Demolition of urban residential houses 403.60 2.1 Compensation for residential houses 1,002.65 m2 2,300 230.61

2.2 Compensation for attachments 156.53

Simple shanty 1,362.17 m2 1,100 149.84

Wall 308 m 150 4.62

Door 15 500 0.75

Fruit tree 110 120 1.32

2.3 other compensation 16.46

Transport subsidy 14 HH 300 0.42


Awards 1,002.65 m2 100 10.03

3 Demolition of enterprises 1,319.00

3.1 Compensation for building demolition 3,185.77 m2 3,800 1,210.59

3.2 Other compensation 108.41

Transport subsidy 3 300 0.09


Awards 3,185.77 m2 100 31.86

III Infrastructure facility 44.25

Fruit tree 2,184 120 26.21

Wall 1203 m 150 18.05

B Other Cost 172.38

1 Monitoring and evaluation (preparation of monitoring reports and equipment procurement)

1% of A 46.39

2 Management cost for implementing resettlement (including staff training) 2% of A 92.79

3 Skill training for affected persons 10.00

4 External monitoring 0.5% of A 23.20 C Taxes and Fees 718.15 Farmland occupation tax 175.42 Mu 28 CNY/m2 327.47

Farmland reclamation fee 175.42 Mu 10 CNY/m2 116.95

New construction land use fee 228.00 Mu 16 CNY/m2 243.21

Management fee for land acquisition 228.00 Mu 1.35 CNY/m2 20.52

Land mapping fee 10.00

Subtotal (A+B+C) 5,529.81 D Contingency 20% of A 927.86


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Total (A+B+C+D) 6,457.67

10.2 Compensation Fund Flow

127. Heishan County Municipal Management Department, as IA, will be responsible for the payment of compensations. Compensations must be paid within three months of APs' signing their compensation agreements with HSRO. Figure 4 shows the compensation flow

Figure 4 Flow of Compensation Funds

Heishan County Financial Bureau

HSCMD

Owners of Ground Attachments

APs Taxes and Fees Collecting Agencies

Village/Community Committees


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ANNEX I Resettlement Information Booklet (RIB)

(Name of AP)

Heishan County Road Network Construction and Upgrading Subproject is one of important sub subproject of the ADB financed Integrated Development of Key Townships in Central Liaoning Subproject. You or unit where you work will be affected by the construction of the sub subproject. The purpose of sending you the RIB is to let you know the basic information, impacts to you or your family, compensation standard, resettlement policies and appeals and grievance mechanism of the subproject.

1. Subproject Description Heishan County Road Network Construction and Upgrading Subproject includes the construction of 14.95 km roads (including the drainage pipeline), six bridges, 10 street lamp transformer boxes, 81 6 street lamps, and five sets of maintenance equipment. The permanent land acquisition for this subproject is 230.33 mu (15.35 hectares).The total investment of the subproject is 366.844 million CNY, including ADB loan 152.8386 million CNY (24.2601 million USD). And the rest part will be collected by local government. The basic objective of the RP is to ensure APs in the subproject suffering land loss or assets loss inevitably can obtain full assistance to rehabilitate their living quality to the level without the subproject, or even better.

2. Subproject Impact The subproject will affect eight communities/villages in two townships. They are Chengguan Village, Dongguan Village, Nanguan Village, Huangjiaao Village, Xinggong Community, Xiangyang Community, Heishanzhen Community in Heishan Township, and Xiawanzi Village in Zhenan Township.

Permanent land acquisition is 230.33 mu (15.35 hectares) including 175.42 mu farmlands, 28.64 mu housing plot and 23.93 mu other collective lands, and 2.33 mu enterprise land. There are 76 HHs with 263 persons affected by the subproject. The demolition area of urban house is 5,216.53 m2 affecting 14 HHs with 49 persons; the demolition area of rural house is 3,185.77 m2. And some ground attachments are affected as well, such as walls and fruit trees.

3. Compensation Standard The compensation standard is identified on base of detailed survey, national, provincial and local relevant laws and regulations, as well as ADB’s policy on involuntary resettlement. Its objective is to rehabilitate or improve APs’ living level in a short time after resettlement. The compensation standards for the subproject are presented in the following tables.

Table 1: Compensation Standards for Land Acquisition

Subproject Type of land Zone

Land Compen-

sation (CNY)

Subsidy (CNY)

Total Land Compensation and Subsidy

(CNY/mu)

Heishan County Road Network Construction and Upgrading Subproject

Farmland

Chengguan Village, Dongguan Village, Nanguan Village, Huangjiaao Village

Category 1 18,750 11,250 30,000

Xiawanzi Village Category 2 15,625 9,375 25,000

Housing plot


Category 1 30,000


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Subproject Type of land Zone

Land Compen-

sation (CNY)

Subsidy (CNY)

Total Land Compensation and Subsidy

(CNY/mu) Xiawanzi Village Category 2 25,000

Waste- land


Category 1 24,000

Xiawanzi Village Category 2 20,000 Enterprise

land Nanguan Village Category 1 30,000

Table 2: Compensation Standards for Demolition of Houses and Ground Attachments

Item Unit Compensation standard (CNY) Remarks

Houses compensation

Urban brick-concrete house m2 2,300 This compensation is only

serving houses. The compensation rates of housing plot have been included in land acquisition compensation.

Rural brick-concrete house m2 1,890

Rural brick-wood house m2 1,800

Compensation for ground

attachments

Wall m 150

Greenhouse m2 500

Well 1,500

Door 500

Fruit tree 120

Fish pond pond 200,000

Henhouse and piggery m2 500

Rural simple shanty m2 990

Other compensation

Transport subsidy HH 300

Placement subsidy Month, m2 10 The total amount is serving for

4 months.

Award m2 100

If the resettlement agreement is signed in 7 days, the award is 100 CNY; on the eighth day, 3 CNY is reduced per square meter.

Note: the compensation standard presented in the table is indicative price in 2010; the actual compensation standard will be identified according to future assessment.


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Table 3: Compensation for Enterprises

Item Unit Compensation

standard (CNY)

Remarks

Houses compensation (brick-concrete) m2 3,800

Economic subsidy Agreed by negotiation

Facility compensation

Calculation based on actual

demolition quantity

Other compen-

sation

Comprehensive subsidy

Month, m2 20 Total payment for 12 months.

Transport subsidy HH 300

Award m2 100

If the resettlement agreement is signed in 7 days, the award is 100 CNY; on the eighth day, 3 CNY is reduced per square meter.

Land compen-

sation Collective land Mu 30,000 To village collective

Table 4: Compensation Standard for Ground Attachments

Item Unit Compensation Standard Wall CNY/m 150

Fruit tree CNY/tree 120

4. Subproject Implementation Schedule Table 5: Implementation Schedule

Item Time Remarks Issuing resettlement notification November 2013 Payment of compensation February - March 2014 Land acquisition and house demolition February - March 2014 Construction preparation March 2014 Construction implementation April 2014

5. Rights and Obligations of APs (1) Rights

APs can obtain all kinds of deserved compensation according to the above compensation standard. APs can raise their opinions and suggestions to the resettlement office and village committee on the cardinal amount of compensation, compensation standard and compensation payment schedule etc. The resettlement office must give their reply to APs timely according to the appeal and grievance mechanism in the subproject.

(2) Obligations

APs should cooperate with the land acquisition and resettlement activities in the subproject.


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6. Grievance Mechanism Resettlement scheme and plan is prepared for entire impacting area and all of resettlement activities. So it is possible to cause complaints due to actual change or execution deviation. In case APs are dissatisfied with compensation arrangements (including relocation site, amount of compensation, and compensation standard) made by the resettlement agencies, or they feel being treated unfairly or unreasonably, they can seek settlement through grievance or appeal redress procedures. Generally there are four channels for complaining channels. APs can also take their case to the civil division of a people’s court at any time.

Subproject Implementing Agency: This is the direct channel to redress the subproject related grievance. An on-site land acquisition and resettlement office will be established with telephone number disclosed, and most of the appeals can be settled at this level. The settlement time should be no longer than one week.

PMO: If the APs feel unsatisfactory with the settlement, they may submit an appeal to the PMO. Then PMO should provide the solutions within one week.

Local Land Resource Bureau/ resettlement office: In case APs are still not satisfied with the settlement, they may submit an appeal to Land Resource Bureau/ Demolition Office. Or they can rely on the arbitration of the Arbitration agencies, which should find the solution within one week.

Legal Action: In case any of the above solutions are not accepted by APs, they can appeal to the People’s Court according to Administrative Procedures Law. AP can appeal against any aspects of resettlement, including the compensation standards.

APs can decide to go through the legal system directly and may decide not to use the project level grievance channels.

APs can appeal on any aspect of resettlement, including compensation criteria and price. APs will be appraised of their rights for lodging appeals during participation in the public meetings and by receiving the RIB. At the same time, the grievance and appeal process will be publicized among the APs through media. The relevant authorities will sort out the opinions and proposals of the APs and the resettlement offices and IA will process the information in a timely and effective manner.

The organizations will accept the grievance and appeals of the APs free of charge, and the reasonable expenses incurred there will be covered by contingency of the RP budget.

The aggrieved person may also express grievance to the external monitor, who would then report it to HSRO/HCLRB, HSCMD, and PMO. Alternatively, the aggrieved person(s) may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB's safeguard policy, the APs may appeal directly to ADB in accordance with ADB's Accountability Mechanism (2012).9

9 Before submitting a complaint to the Accountability Mechanism, the affected people should make a good faith effort

to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism - http://compliance.adb.org/.


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ANNEX II TOR of External M&E 1. Purpose of resettlement monitoring and evaluation

According to ADB’s resettlement policy, the resettlement work of the Project will be subject to external monitoring and evaluation. The land acquisition and resettlement work of project will be tracked and evaluated by checking the progress, funds and management of land acquisition, house demolition and resettlement, and making a comparative analysis of the variation and restoration of the production level and standard of living of AP by land acquisition and resettlement. While reports are submitted to ADB and PMO regularly (twice a year during the implementation period); information and suggestions will also be provided as a reference for decision-making. Through external monitoring and evaluation, ADB and the implementing agencies can fully understand if the land acquisition and resettlement work is implemented on schedule and is accordance with the quality standard, point out existing issues, and propose suggestions for improvement. 2. Scope of resettlement monitoring and evaluation

(1) Monitoring and evaluation of implementation progress of land acquisition and house demolition. Including:

i) progress of land acquisition; ii) progress of temporary land occupation; iii) demolition and relocation of affected households; iv) restoration of infrastructure

(2) Monitoring and evaluation of availability and utilization of funds. Including: i) availability of funds; ii) utilization of funds (planned vs. actual)

(3) Monitoring and evaluation of the standard of living of the AP. Including: i) production level and standard living of AP before LA&R; ii) production level and standard living of AP after LA&R; iii) comparative analysis and evaluation of production level and standard living of AP

before and after LA&R (4) Capacity evaluation of the implementing agencies, public participation, complaints and

appeals.

3. External monitoring agency The external resettlement monitoring and evaluation work of the project shall be undertaken by an external monitoring agency entrusted by the PMO and accepted by ADB. 4. Organization of resettlement monitoring and evaluation

i. The PMO shall entrust the external monitoring agency to take charge of the survey, data collection and computational analysis for monitoring and evaluation, and to review the corresponding findings.

ii. The external monitoring agency shall set up a “resettlement monitoring and evaluation taskforce of the Project”, whose task is to monitor and evaluate the resettlement work of the project, prepare the monitoring and evaluation outline, select monitoring targets, take charge of field survey, monitoring and in-house analysis, and prepare resettlement monitoring and evaluation reports according to the ADB Policy on Involuntary Resettlement.

iii. During the field monitoring and survey by the taskforce, the PMO and IAs shall offer assistance in staffing and traffic.


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5. Methods of resettlement monitoring and evaluation

i. A combination of field survey, computational analysis and comprehensive expert evaluation shall apply to monitoring and evaluation.

ii. The survey shall be conducted comprehensively. The progress, funds, organization and management of implementation shall be surveyed in all aspects, while the displaced households shall be subject to sampling survey.

iii. The sampling survey shall be based on random sampling to track the fixed households in the typical sample. Sampling rates: 10% of HHs affected by land acquisition and 20% of HHs affected by house demolition.

iv. The complete survey shall be conducted in the methods of structured survey (questionnaire survey), discussion and literature search, etc.

v. Tracer surveys, using the baseline survey questionnaire, will be applied to assess the change in living standard, livelihoods and income. This will be the basis to determine whether resettlement has been successfully completed.

vi. Except written materials, photos, audio and video records, real objects shall also be collected.

6.1 Monitoring Indicators The baseline survey, as well as the follow up monitoring and post-project evaluation, will cover and not limited to the following socioeconomic indicators of targeted HHs:

i. Level of education of adults by gender ii. Occupation of adults by gender iii. Land area by type iv. House type (quality) v. Housing area vi. Income by source vii. Expenditure by type viii. Major assets ownership ix. Cropping pattern (cultivated area of each crop) x. Compensation to village committees and its use.

6.2 Regular Monitoring and Evaluation

During the implementation of the RP, the external monitoring agency will monitor the following indicators (fully or partly) twice a year:

(i) Disbursement and amount of compensation fees; (ii) The survey and coordination of and suggestions for key issues of AP and the

implementing agency during implementation; (iii) The restoration and resettlement of the vulnerable groups, support to the vulnerable

groups; (iv) Restoration and reconstruction of ground affiliated and special facilities; (v) Resettlement and restoration of production and livelihoods; (vi) Compensation for property losses; (vii) Schedule for the above activities (applicable at any time); (viii) Use of compensation fees for land and income of the displaced persons； (ix) Increase in employment income of labor; (x) Whether the affected people benefit from the project; (xi) Degree of satisfaction or problems identified;


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(xii) The degree of participation and consultation of AP during implementation; and (xiii) Resettlement training and its results. 7. Reporting of external resettlement monitoring and evaluation The external monitoring agency shall submit a resettlement monitoring report to the PMO and ADB semiannually. A yearly evaluation report will also be prepared for at least two years by the external monitor after LA&R completion but before the project’s completion. The external monitor will also prepare a consolidated resettlement evaluation/completion report for the whole project.

Reporting Schedule of External Monitor

Date Item

October 2013 Signing contract with independent monitoring agency and preparing ToR of M&E.

November 2013 Preparing work plan of external M&E, including: preparing ToR of survey and form; establishing monitoring system; confirming tasks; and confirming monitoring points.

December 2013 Preparing Baseline Survey.

Feb 2014 Submitting No. 1 Monitoring Report.

Aug 2014 Submitting No. 2 Monitoring Report.

Feb 2015 Submitting No. 3 Monitoring Report.

Aug 2015 Submitting No. 4 Monitoring Report.

December 2016 Submitting Evaluation/Completion Report for the whole project.

8. Monitoring Budget


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The budget for this subproject is 0.5% of the basic cost (i.e., compensation budget). A total budget for all subprojects is CNY 900,000, including CNY230,200 from this subproject. ANNEX III Chinese Relevant Laws and Regulations

(1) The relevant regulations in Land Administration Law of the P.R.C Article 47: Land expropriated shall be compensated for on the basis of its original purpose

of use.

Compensation for expropriated cultivated land shall include compensation for land, resettlement subsidies and compensation for attachments and young crops on the acquired land. Compensation for expropriated of cultivated land shall be six to ten times the average yearly output value for the expropriated land, calculated on the basis of three years preceding such acquisition. Resettlement subsidies for expropriated cultivated land shall be calculated according to the agricultural population needing to be resettled. The agricultural population needing to be resettled shall be calculated by dividing the area of expropriated cultivated land by the average area of the original cultivated land per person of the unit the land of which is expropriated. The standard resettlement subsidies to be divided among members of the agricultural population needing resettlement shall be four to six times the average yearly output value of the expropriate cultivated land calculated on the basis of three years preceding such expropriation. However, the maximum resettlement subsidies for each ha of the expropriated cultivated land shall not exceed fifteen times its average yearly output value calculated on the basis of three years preceding such expropriation.

If land compensation and resettlement subsidies paid in accordance with the provisions of the second paragraph in this Article are still insufficient to enable the peasants needing resettlement 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 yearly output value of the expropriated land calculated on the basis of three years preceding such expropriation.

(2) The relevant regulations in Bylaws of Acquisition and Compensation for Houses Demolition on State-owned Land

Article 10: Departments being responsible for houses acquisition should prepare compensation scheme, and submit to the government city or township for approval.

The municipal or county-level government of city or township should organize related departments to demonstrate the compensation scheme and publish, to obtain the public opinions. The term of obtaining opinions should not be less than 30 days.

Article 17: The compensations should be given to the affected people by the government of city or township where decided to acquire houses, the compensation includes:

1) Price difference of the acquired houses;

2) Compensation for the removal to the relocated and temporary resettlement; and

3) Compensation for income loss caused by production interruption.

Article 19: The compensation for the value of the acquired houses, should not be less than the market price of the similar real estate properties on the day that houses acquisition published. The value of the acquired houses should be evaluated according to the houses acquisition evaluating methods by the qualified real estate property institution.

Article 21: The affected people have rights to choose either cash compensation or housing property replacement.


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For the affected people who choose housing property replacement, the government of city and township should provide the houses for property replacement, and calculate the amount of compensation for demolished houses and the price of houses to be replaced, and shall settle up the price difference in the exchange of property right.

Article 27: Compensation should be paid prior to house demolition in the implementation of houses acquisition.

(3) The regulations of Decisions on Deepening the Reform and Strengthening Land Management issued by State Council

Article 12: The measurement to improve land acquisition compensation is: the county-level and higher level governments must take practical actions to ensure that the living conditions of the farmers with land lost will not become worse. The provincial government must identify and disclose the AAOV and integrated land price of every county and city. The compensation must be consistent with the same category of land. All the land acquisition costs must be included in the total budget of the subproject.

Article 13: Proper Rehabilitation measures for the farmers with the lost land. The county government or above must take the concrete measures to ensure the living sustainability of the affected persons. The local government must put the farmers with lost land into the urban employment system and provide the social security system for them if the lands are in the planned urban area; if the lands are outside of the planned urban area, the local government must retain the certain areas of farmland for the farmers with lost land within its jurisdictions or provide the employment for them.

Article 14: Improvement of land acquisition procedures. The information disclosure to the affected persons and their consent should be documented and submitted as part of the land acquisition application portfolio.

Article 15: Strengthening the supervision and management in the land acquisition process. Land should not be acquired before the APs obtain the replacement land or sufficient compensation. The provincial government must make the compensation allocation schemes for the collective-owned land. The principle is that the major compensation fund should be allocated to the affected HHs. The affected villages must publish, and supervise by their representatives the compensation fund and its allocation. The relevant government agencies, such as agricultural, civil affairs and others, should strengthen supervision of the compensation fund delivery and utilization.

(4) The regulations in Liaoning Provincial on the Implementation of Land Administration Law of PRC

Article 23: The compensation standards for farmland and the subsidy are:

1. The land compensation standards are six to seven times of AAOV calculated on the basis of three years preceding such land acquisition for the urban infrastructure subprojects as one of public purpose subprojects, if land to be acquired lies in outside of urban planning area. While the land compensation standards are 8-10 times of AAOV calculated on the basis of three years preceding such land acquisition for other purposes of the subproject.

2. The resettlement subsidies for each person needing to be resettled are four to six times of AAOV calculated on the basis of three years preceding such farmland acquisition. However, the maximum resettlement subsidies shall not exceed 15 times calculated on the basis of three years preceding such farmland acquisition.

In case of land compensation and resettlement subsidies provided pursuant to the provisions of the above-mentioned Article cannot maintain their original living standard, after approval of provincial people’s government, the total of land compensation and resettlement subsidies can be increased, however, shall not exceed 30 times of the average annual output


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value calculated on the basis of three years preceding such farmland acquisition.

Article 24: The land compensation and resettlement subsidies for other types/purpose of land should be identified on the basis of the following stipulation:

1. For types of forestry land, grassland, reed pond and breeding aquatics pond and land for water resources infrastructures, the land compensation standards should be four to six times of AAOV of adjacent dry land calculated on the basis of three years preceding such land acquisition.

2. For lands used by public facilities owned by township or village, township enterprises and rural housing plot, the land compensation standards are five to seven times of AAOV of adjacent dry land calculated on the basis of three years preceding such land acquisition.

3. For lands of idle land, waste stack, wasteland, waste plain and unutilized land, the land compensation standards are two to three times of AAOV of adjacent dry land calculated on the basis of three years preceding such land acquisition.

4. The compensation for village threshing floor and bleachery, etc., are based on the compensation standards for their original types of land.

As for forestry land, grassland, reed pond, breed aquatics pond and land for water resources infrastructures, and rural construction land, resettlement subsidies for per agricultural person shall be 4 times the average annual output value calculated on the basis of three years preceding such land acquisition. However, the maximum resettlement subsidies for cultivated land per hectare shall not exceed 10 times of the average annual output value calculated on the basis of three years preceding such land acquisition.

No resettlement subsidies are provided for the land acquisition of idle land, waste stack, wasteland, waste plain and unutilized land since no agricultural taxes are levied to these lands.

Article 25: The compensation standards for appurtenances and young crops are:

1. The appurtenances are compensated based on their values and actual costs.

2. The compensation standards for young crops are calculated based on the output value of single season cropping.

Any trees, young crops planted and the buildings are not entitled to be compensation after the land acquisition notice publicized.

Article 45: The state-owned land rights or the collective land rights could be taken back subject to the approval of the People’s Government under the conditions of serving public purposes, the old city rebuilding as part of implementing the urban planning and construction of township/village public infrastructures

However, the original landowners should be compensated. The specific compensation standards are made based on the local actual conditions.

(5) The regulations in the Notice on Implementing Land Acquisition Area Comprehensive Land Price standard issued by Liaoning Provincial People's Government Office

1. This land acquisition area comprehensive land price standard refers to the summation of the compensation and subsidy for acquiring general agricultural land; the other land type should be adjusted according to the following coefficient based on the comprehensive land price standard: constructive land 1.0; unused land 0.8. Any units or individuals are not allowed to change or reduce the land acquisition area comprehensive land price standard without approval.

2. If there are fixtures and young crops on the acquired land, there should be other


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compensation for the owners. The detailed compensation standard (except for the compensation for tress) should be prepared by the local municipal government, and reported to the provincial government for record. The compensation for young crops should be calculated according to the output value of seasonal crops while implementing land acquisition.

3. Acquiring peasant family land according to law, 80% of land acquisition compensation fee is owned by farmers, 20% owned by the collective economic organizations; acquiring the land not contracted or contracted in other ways by the collective economic organizations, land acquisition compensation fee is owned by the collective economic organizations, distributed or used according to law.

4. If the subproject construction or geological survey need to use country collective or state-own lands temporarily for one year, the compensation standard account for 15% of the land acquisition area comprehensive land price; the compensation standard account for 20% of the land acquisition area comprehensive land price for two years.

5. If the subproject construction is approved to utilize state-own agricultural and unused lands, the compensation for which should refer to the comprehensive land price of collective agricultural and unused lands within the area.

(6) The Notice of Price Guideline on the Compensation for House Acquisition in Heishan County

The price guideline on the compensation for house acquisition in Heishan County in 2011 is presented as following:

1. Price Guideline for the Acquisition of Legal House

1.1 Price Guideline for the Acquisition of Legal Residential House

In the area of Category I, the compensation standard is 2,300 CNY/m2 for Beijing-style flat houses, and 2,200 CNY/m2 for flat and tile-roofed houses; in the area of Category II, the compensation standard is 2,200 CNY/m2 for Beijing-style flat houses, and 2,100 CNY/m2 for flat and tile-roofed houses; In the area of Category III, the compensation standard is 2,100 CNY/m2 for Beijing-style flat houses, and 2,000 CNY/m2 for flat and tile-roofed houses.

1.2 Price Guideline for the Acquisition of the Houses for the Purpose of Production and Business Operation

In the area of Category I, the compensation standard is 2,800 CNY/m2 for Beijing flat houses located at the sides of main roads, and 3,600 CNY/m2 for flat and tile-roofed houses located at the sides of main roads.

2. Price Guideline for the Acquisition of Shanty

The compensation standard is 1,100 CNY/m2 for Beijing flat houses, and 1,000 CNY/m2 for flat and tile-roofed houses.

3. In townships, compensation standards in the three categories are 10% lower than the county level.

(7) Notice about the House Acquisition Compensation Plan of 9# Land in Heishan County

1. The APs can choose monetary compensation or housing property replacement.

2. Monetary Compensation (Compensation and Resettlement)

The affected persons abandoned house ownership will be given monetary compensation according to the evaluation result and the regulations of Price Guideline on the Compensation for House Acquisition in Heishan County and resettle themselves.

3. Housing Property Replacement


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3.1 Legal house: the demolished can be replaced by new apartment with the same area. If the demolished small shops that do not face street will not be replaced by the shops facing street; if the demolished small shops that face street will be replaced by the shops facing street. The replaced houses should have the same floors and area as the demolished houses. If the replaced house is bigger than the demolished one, the bigger part should be paid as market price but with 10% discount.

3.2. With the approval of planning department, temporary houses will be compensated with 50% of the area and the replaced houses will become legal houses.

3.3 If the demolished legal houses are smaller than 50 m2, they will be replaced by houses with an area of 45 m2, with no additional payment required. If the APs want replacement house with the area of 60 m2, he can enjoy the next article of the regulation.

3.4 If the demolished legal house is smaller than 60 m2 and the AP wants a replaced house with 60 m2, he need to pay for the area between 45 m2 to 60 m2 but he can enjoy the subsidy of 1,000 CNY/m2. If he wants the replaced house with the area over 60 m2, for the part over 60 m2, he needs to pay according to the market price.

3.5 For the resettlement of apartments, the APs can enjoy the subsidy of decoration for the resettled apartment with 200 CNY/m2.

4. Award

If the resettlement agreement is signed in seven days, the award is 100 CNY; since the eighth day, three CNY is reduced per square meter until deducting the entire award.

5. If the demolished legal house faces the main roads, HH can be resettled to the apartment with the area 10% bigger than the original house.

6. Transport subsidy: each HH can receive 300 CNY as transport subsidy.

7. Temporary resettlement cost and comprehensive subsidy are 10 CNY/m2 per month for legal house and 20 CNY/m2 per month for production houses and workshops. The affected HHs choosing monetary compensation can receive the subsidy for six months; affected HHs choosing housing property replacement can receive the subsidy for 12 months.

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