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Resettlement Plan May 2013

PRC: Integrated Development of Key Townships in Central Liaoning Prepared by Gaizhou City Public Utilities and Real Estate Bureau 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/44021-013/documents.

Integrated Development of Key Townships in Central Liaoning

Gaizhou Subproject

Resettlement Plan

Gaizhou City Public Utilities and Real Estate Bureau

May 2013

PRC Integrated Development of Key Townships in Central Liaoning - Gaizhou Subproject Resettlement Plan

1

Declaration

This Resettlement Plan was prepared according to the project final design.


2

ENDORSEMENT LETTER OF RESETTLEMENT PLAN

Asian Development Bank:

The Resettlement Plan (hereinafter referred to as RP) of the Gaizhou 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

Gaizhou governments. During implementation of the Project, we will strictly abide by this RP.

This Resettlement Plan was prepared according to the project feasibility study report (FSR). If the

final contents of project implementation are different from the FSR, this RP will be amended and

re-submitted to the ADB for approval before its implementation.

Date: May 2013

Signature:

Deputy Mayor:Gaizhou Municipal Government


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CONTENTS

ENDORSEMENT LETTER OF RESETTLEMENT PLAN ............................................................ 1

CONTENTS ........................................................................................................................................ 3

ABBREVIATIONS AND ACRONYMS ............................................................................................ 6

EXECUTIVE SUMMARY .................................................................................................................. 7

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

1.1 SUBPROJECT DESCRIPTION ........................................................................................................11

1.2 THIS RESETTLEMENT PLAN ........................................................................................................ 12

1.3 MEASURES TAKEN TO MINIMIZE RESETTLEMENT IMPACT ......................................................... 12

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

2.1 SCOPE OF LAND ACQUISITION AND RESETTLEMENT IMPACT ................................................... 13

2.2 AFFECTED VULNERABLE GROUPS ............................................................................................. 14

3. SOCIO-ECONOMIC STATUS AND IMPACT ANALYSIS ................................................. 15

3.1 GAIZHOU CITY AND AFFECTED VILLAGES .................................................................................. 15

3.2 SOCIO-ECONOMIC SURVEY ........................................................................................................ 15

3.3 SOCIAL-ECONOMIC STATUS OF APS ......................................................................................... 16

3.4 GENDER ANALYSIS ..................................................................................................................... 18

3.5 IMPACT ANALYSIS ....................................................................................................................... 19

4. PUBLIC PARTICIPATION AND CONSULTATION AND APPEAL REDRESS .............. 23

4.1CONSULTATION DURING PROJECT PREPARATION ..................................................................... 23

4.2 CONSULTATION AND PARTICIPATION PLAN ............................................................................... 27

4.3 DISCLOSURE OF RESETTLEMENT PLAN ..................................................................................... 28

4.4 APPEAL AND GRIEVANCE REDRESS .......................................................................................... 28

5. LEGAL FRAMEWORK AND POLICIES .............................................................................. 30

5.1 LAWS AND POLICIES RELEVANT TO RESETTLEMENT ................................................................ 30

5.2 SUMMARY OF ADB'S POLICY REQUIREMENTS ON INVOLUNTARY RESETTLEMENT.................. 31

5.3 LAWS, REGULATIONS, AND POLICIES OF PRC AND LIAONING PROVINCE ................................ 31

5.4 MAIN DIFFERENCES BETWEEN ADB AND PRC POLICIES ......................................................... 31

5.5 COMPENSATION STANDARDS..................................................................................................... 34

5.6 COMPENSATION ENTITLEMENTS ................................................................................................ 35

6. INCOME REHABILITATION PLANS .................................................................................... 37

6.1 INCOME REHABILITATION ........................................................................................................... 37

6.2 RESETTLEMENT OF ENTERPRISES ............................................................................................. 40

7. INSTITUTION ARRANGEMENT ........................................................................................... 41

7.1 INSTITUTION SET-UP ................................................................... ERROR! BOOKMARK NOT DEFINED.

7.2 RESPONSIBILITIES ...................................................................................................................... 41

7.3 CAPACITY BUILDING ................................................................................................................... 42

8. MONITORING & EVALUATION ............................................................................................ 43

8.1 INTERNAL MONITORING .............................................................................................................. 43


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8.2 EXTERNAL MONITORING AND EVALUATION ............................................................................... 44

9. IMPLEMENTATION SCHEDULE .......................................................................................... 47

9.1 PRINCIPLES FOR RESETTLEMENT IMPLEMENTATION ................................................................ 47

9.2 IMPLEMENTATION SCHEDULE ..................................................................................................... 47

10. RESETTLEMENT BUDGET ............................................................................................... 49

10.1 BUDGET .................................................................................................................................... 49

10.2 FUND FLOW .............................................................................................................................. 50

ANNEX I RESETTLEMENT INFORMATION BOOKLET .......................................................... 51

ANNEX II LAWS AND REGULATIONS OF PRC AND LIAONING PROVINCE .................... 55

ANNEX III TERMS OF REFERENCE FOR EXTERNAL M&E .................................................. 61


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List of Tables and Figures

Table ES-1: LA&R Impacts by Subdistrict and by Village .............................................................. 4 Table 1-1: Contents of the Engineering Component .................................................................... 11 Table 1-2: Comparisons of Two Options of Beichen Road .......................................................... 12 Table 2-1: LA&R Impacts by Subdistrict and by Village ............................................................... 13 Table 3-1: The Basic Information of the Affected Villages ............................................................ 15 Table 3-2: Distribution of Surveyed Households .......................................................................... 15 Table 3-3: Education and Employment Status ............................................................................. 16 Table 3-4: Land Resource ........................................................................................................... 16 Table 3-5: Income and Expenditure of Affected Rural HHs in 2010 ............................................. 17 Table 3-6: Main Income Sources ................................................................................................. 17 Table 3-7: Surveyed Households' Expenditures in 2010 ............................................................. 18 Table 3-8: Women’s Contribution to HH Income in 2010 ............................................................. 18 Table 3-9: Concerns on Resettlement ......................................................................................... 19 Table 3-10: Land Loss Impact on Affected Villages ..................................................................... 19 Table 3-11: Farmland and Income Losses of Affected HHs ......................................................... 20 Table 3-12: Maximum Income Loss to Different Extent of Farmland Loss ................................. 20 Table 3-13: Basic Situations of the Affected Enterprises ............................................................. 21 Table 3-144: Income Structures of Vulnerable Groups Affected by Land Acquisition ................... 22 Table 4-1: Consultation Activities During RP Preparation ............................................................ 24 Table 4-2: Perceptions of APs ..................................................................................................... 26 Table 4-3: Consultation and Participation Plan ............................................................................ 27 Table 5-1: Gaps between ADB and PRC Policy Regarding the Involuntary Resettlement ........ 32 Table 5-2: Collective Land Acquisition Compensation Standards ................................................ 34 Table 5-3: Compensation Standards and Costs for Affected Enterprises..................................... 34 Table 5-4: Compensation Standards of Attachments and Infrastructures .................................... 35 Table 5-5: Entitlement Matrixes ................................................................................................... 36 Table 6-1: Training Plan (2013-2015) .......................................................................................... 39 Table 7-1: Responsibilities .......................................................................................................... 41 Table 8-1 Implementation Progress ............................................................................................. 43 Table 8-2 Fund Use ..................................................................................................................... 43 Table 8-3 Reporting Schedule ..................................................................................................... 45 Table 9-1: Implementation and Supervision Milestones .............................................................. 47 Table 10-1: Resettlement Budget ................................................................................................ 49 Figure 1: Distribution of Subcomponents ........................................................................... 11

Figure 2: Resettlement Institutional Set-up ....................................................................... 41

Figure 3: Compensation Flowchart .................................................................................... 50


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ABBREVIATIONS AND ACRONYMS

AAOV Average Annual Output Value ADB Asian Development Bank AP Affected Persons C&P Consultation and Participation DI Design Institute DMS Detailed Measurement Survey EA Executive Agency FB Financial Bureau FSR Feasibility Study Report HH Household GAP Gender Action Plan GCAB Gaizhou City Civil Affairs Bureau GCCC Gaizhou City Construction Committee GCRO Gaizhou City Resettlement Office GLRB Gaizhou City Land Resource Bureau GPUREB Gaizhou City Public Utilities and Real Estate BureauIA Implementing Agency LA&R Land Acquisition and Resettlement M&E Monitoring and Evaluation PMO Project Management Office PRC People’s Republic of China RIB Resettlement Information Booklet RP Resettlement Plan SDAP Social Development Action Plan VC Village Committee


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Executive Summary

A. Subproject Description

ES1. The proposed subproject consists of two components: (i) sustainable development of urban infrastructures (hereafter refer to engineering component) and (ii) capacity building. The engineering component consists of three parts: (i) construction of an urban trunk road of 4.3 km (the Beichen Road, including the drainage system and road lights); (ii) reconstruction of one laneway (as Honghuayu Road) of 2.2 km; and (iii) re-pavement of 50 laneways in an old urban block. Only the urban trunk road involves land acquisition and resettlement (LA&R).

B. Scope of Land Acquisition and Resettlement

ES2. The proposed peri-urban trunk road, which traverses three villages of two subdistricts, will have the following land acquisition impact: (i) acquiring 108.6 mu of collective land of three villages, including 83.6 mu of farmland and 25 mu of waste land; and (ii) acquiring 1.1 mu of state-owned land used by two enterprises together with 320 m2 of buildings. The affected persons (APs) include: (i) 339 persons of 96 rural households (HHs) from the three villages by collective land acquisition and (ii) 10 employees from one enterprise (another has closed completely). There will be no residential structures demolished under this subproject. Table ES-1 summarizes the LA&R impacts in details.

Table ES-1: LA&R Impacts by Subdistrict and by Village

Item Unit Total Dongcheng Subdistrict Xicheng Subdistrict

Subtotal XiangouVillage

Honghuayu Village

Subtotal ChezhanVillage

A. Permanent Land Acquisition

mu 108.6

A1. Collective Farmland

mu 83.6 75.7 41.8 33.9 7.9 7.9

A2. Collective Wasteland

mu 25 16 7.8 8.2 9 9

A3. Farmland Class (area class)1

III III I

A4. State-owned Land Used by Enterprises

mu 1.1

B. Enterprises Demolition

m2

B1. Floor Area (brick-wood)

m2 320 320 320

C. HHs and People Affected by Land Acquisition

C1. HHs no. 96 89 42 47 7 7 C2. Persons person. 339 315 159 156 24 24

D. Enterprises Affected by LA&R

D1. Affected no. 2 2 2

1 Class in relation to its distance to urban center.


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Enterprises D2. APs person 10 10 10

C. Policy Frameworks

ES3. The resettlement objectives are to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; and 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 Asian Development Bank's (ADB’s) policy requirements stated in the Safeguard Policy Statement (2009). Key People’s Republic of China (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) (Nov. 3, 2004). Meanwhile, Liaoning Province and Gaizhou City formulated relevant regulations, including: (i) Liaoning Provincial Implementation Regulations of Land Administration Law of PRC in Liaoning Province (took effect on 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 (effective January 7, 2010); and (iii) Detailed Methods of Urban Area Resettlement Demolition and Reconstruction of Gaizhou City (No. [2006] 66). All these documents have provided essential guidelines for resettlement plan (RP) preparation and implementation.

ES4. 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 the latest LA&R policy of Gaizhou City Government. Moreover, various forms of assistance will be available to severely affected persons and vulnerable groups. An entitlement matrix is prepared and included in the RP.

D. Resettlement and Rehabilitation

ES5. Income rehabilitation of affected farmers. Initial assessment indicated that 95 out of 96 affected rural HHs will lose more than 10% of their farmland, and consequently 32.3% of them will lose more than 10% of their income. Non-farm employment currently absorbed 47% of the laborers among APs; this will be the main source of income rehabilitation for APs since there are plenty of such opportunities in Gaizhou and the big cities nearby (e.g. Dalian, Shenyang, and Yingkou). In addition to non-farm employment, high-value farming on remaining land (greenhouse vegetables, fruit, and sizable livestock) will also be promoted among APs. The non-farm employment and high-value farming will be supported by a training plan.

ES6. Resettlement of affected enterprises. The affected buildings of the two enterprises will be compensated at replacement costs, together with various subsides. One of the affected enterprises currently under operation will reconstruct its affected building within its remaining premises, while the other one will not, as it has closed operations.

E. Public Consultations and Participation


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ES7. During the preparation of this RP, a number of consultation meetings were organized at subdistrict and village levels. In addition, more than 20 households were targeted and interviewed for sample household socioeconomic survey. During the consultation meetings and interviews information about the project and resettlement planning activities were provided to various stakeholders. Local governments and the design institute (DI) will continue their consultation activities during the final design. The opinions and concerns raised by various stakeholders about the planning and implementation of resettlement activities were incorporated in the RP.

ES8. A resettlement information booklet (RIB) was drafted and will be distributed to every affected household in August. 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 consultation and participation (C&P) plan is included in the RP.

F. Appeals and Grievance Redress

ES9. The procedures for appeals and grievance redress have been included into the RIB which will be disclosed to APs in August. Before the LA&R implementation, they will be further explained in the public meetings by the implementing agency (IA) and the relevant resettlement agencies.

G. Resettlement Budget

ES10. The resettlement budget is CNY 9.74 million, accounting for 6.4% of the total investment (CNY 152.87 million) of the subproject. The budget includes: (i) CNY 2.94 million for compensation of collective land acquisition; (ii) CNY 0.62 million for compensation to affected enterprises; (iii) CNY 0.42 million for compensation of affected attachments; (iv) CNY 0.24 million as cost for administration, monitoring and evaluation (M&E) and training; (v) CNY 4.72 million for taxes and fees; and (vi) CNY 0.8 million as contingency.

H. Implementation Arrangement and Schedule

ES11. Gaizhou City Public Utilities and Real Estate Bureau (GPUREB) is the Implementing agency (IA) of the Project and will establish a resettlement department to coordinate all implementation activities, including planning, consultation, financing, implementation, and monitoring the delivery of entitlements in time. Gaizhou City Land Resource Bureau (GLRB) and Gaizhou City Resettlement Office (GCRO) will be responsible for resettlement implementation and delivery of entitlements, as stipulated in the RP. Subdistrict offices 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.

ES12. Land acquisition and structure demolition will commence in December 2013 and is scheduled to be completed within two years. GPUREB has agreed to a set of supervision milestones with ADB to ensure timely and effective implementation of the resettlement activities (see Table ES-2).


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Table ES-2: Implementation and Supervision Milestone

No. Resettlement Tasks Target Responsible

Agency Deadline

1. Consultation and InformationDisclosure

1.1 Distribution of RIB among APs 96 copies GPUREB Aug 2013

1.2 RP distribution to affected villages and subdistricts and relevant government agencies

10 copies GPUREB Aug 2013

2. RP Updating based on DMS 2.1 DMS GPUREB and DI Sep-Oct 2013 2.2 Disclosure of final RP 10 copies GPUREB Nov 2013 2.2 Final RP submitted to ADB GPUREB Nov 2013

3. Capacity Building

3.1 Establishment of resettlement department of GPUREB

GPUREB June 2013

3.2 IA, FLRB, and GCRO capacity building 30 staff Aug-Sep 2013 3.3 Designate village authorities Jul 2013

4. Resettlement implementation

4.1 Agreements with villages 3 villages

GLRB/GCRO

Dec 2013 - Feb 2014

4.2 Agreements with enterprises 2 Dec 2013 - Feb

2014

4.3 Agreements with APs 96 HHs Dec 2013 - Feb

2014 5. M&E

5.1 Entrusting external monitor, preparing internal monitoring plan

LPMO and

GPMO Dec 2013

5.2 Baseline survey 10% of APs External monitor Jan 2014

5.3 Internal monitoring reports quarterly GPUREB and

PMO 2014-2015

5.4 External monitoring reports Semi-annually External monitor 2014-2015

5.5 Resettlement completion report GPUREB &

GPMO Dec 2016

I. Monitoring and Reporting

GPUREB, with the support of GLRB, GCRO, subdistrict, and villages will carry out internal monitoring of the RP implementation. GPUREB will report to Liaoning Provincial Project Management Office (LPMO) on the progress of the RP implementation, while the latter will then report to ADB quarterly2. The LPMO will also prepare a resettlement completion report for each subproject for submission to ADB.

The LPMO will engage an independent agency to conduct external monitoring and evaluation for this and other subprojects. While the external M&E reports will be submitted to the LPMO and ADB every six months by the external monitoring agency until the resettlement tasks are completed. 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.

2 PMO reports to ADB on progress of all subprojects.


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1. Introduction

1.1 Subproject Description

1. The proposed subproject consists of two components: (i) sustainable development of urban infrastructures (hereafter refer to engineering component) and (ii) capacity building. As indicated in Table 1-1, the engineering component consists of three parts: (i) construction of a new urban trunk road - Beichen Road (including the drainage system and road lights) of 4.3 km; (ii) reconstruction of one laneway (as Honghuayu Road) of 2.2 km; and (iii) re-pavement of 50 laneways in an old urban block. The distribution of the engineering subcomponents is given in Figure 1-1. Only the urban trunk road subcomponents have LA&R impacts, because reconstructing pavement for existing roads will be done without any widening.

Table 1-1: Contents of the Engineering Component

No. Engineering Characteristics LA&RImpact

1 Construction of an urban trunk road (Beichen Road) of 4.3 km (width of 21~30 m), together with the establishment of storm water and wastewater drainage systems and illumination system.

Yes

2 Reconstruction of a laneway (Honghuayu Road) of 2.2 km (width of 10 m), together with the establishment of stormwater and wastewater drainage systems and illumination system.

No, just reconstruct

existing road

3 Re-pavement of 50 small lanes in the old urban block.

No, just reconstruct

existing road

Figure 1: Distribution of Subcomponents


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1.2 This Resettlement Plan

2. This RP targets the new urban trunk road that has LA&R impacts. It is based on: (i) ADB's Safeguard Policy Statement (Requirements 2: Involuntary Resettlement) (2009); (ii) ADB’s Gender Checklist: Resettlement, March 2003; (iii) Chinese relevant laws and regulations; and (iv) Local relevant laws and regulations.

3. The purpose of the RP is to ensure the APs can benefit from the subproject and that their standards of living can be improved or at least restored.

4. Data and relevant information of this resettlement plan were from: (i) the preliminary design (December 2012); (ii) LA&R impact survey (January 2013); (iii) consultation of affected households; and (iv) socio-economic survey of affected households (October 2011).

1.3 Measures Taken to Minimize Resettlement Impact

5. LA&R impacts arise from the new trunk road (Beichen Road) only. Through comparative studies of two options for the Beichen Road, the LA&R impacts have been minimized by GPUREB and the Design Institute3. The design institute considered minimizing farmland acquisition, but no change between the two options. Finally, the best option to reduce possible house demolition was chosen. Table 1-2 compares the two options.

Table 1-2: Comparisons of Two Options of Beichen Road Scheme 1

(Road network planning)

Scheme 2 (FS recommended)

Note

Demolishment of 1,580 m2 of 18 resident houses and 320 m2 structures of two enterprises (affects 61 people).

Just demolishment of 320 m2 of structures of two enterprises.

Scheme 1 had a green belt with 10 m in total for both sides. But reduced it in order to reduce LAR impact. Scheme 2 was selected. The demolition of residential houses of 18 HHs with 61 people was avoided.

6. Meanwhile, measures will be taken in the process of the implementation to minimize the LA&R impacts and construction disturbance on local people, such as: (i) reduce temporary land occupation; (ii) minimize the impact on the local traffic and on the surrounding environment; (iii) reduce the dust in the process of the construction; (iv) minimize construction noise; and (v) perform timely cleaning of wastes at the construction sites.

3 Consultant to GPUREB for feasibility study and the preparation of this RP.


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2. Land Acquisition and Resettlement Impact

2.1 Scope of Land Acquisition and Resettlement Impact

7. The trunk road traverses two subdistricts4 and three villages of Gaizhou. Table 2-1 summarizes the LA&R impacts of the trunk road by subdistrict and by village. There will be permanent land acquisition and enterprises demolition. There will be no residential structures demolished under this subproject.

Table 2-1: LA&R Impacts by Subdistrict and by Village

Item Unit Total Dongcheng Subdistrict

Xicheng Subdistrict

Subtotal XiangouVillage

HonghuayuVillage

Subtotal ChezhanVillage

A. Permanent Land Occupation

mu 108.6

A1. Collective Farmland

mu 83.6 75.7 41.8 33.9 7.9 7.9

A2. Collective Wasteland

mu 25 16 7.8 8.2 9 9

A3. Farmland Class (area class)5

III III I

A4. State enterprise

mu 1.1

B. Enterprises Demolition

m2

B1. Floor Area (brick-wood)

m2 320 320 320

C. HHs and People Affected by Land Acquisition

C1. HHs HH 96 89 42 47 7 7 C2. Persons person 339 315 159 156 24 24

D. Enterprises Affected by LAR

D1.Affected Enterprises

no. 2 2 2

D2. Affected Workers

no. 10 10 10

E. Attachments E1. Peach tree 191 176 176 15 15 E2. Plum tree 96 96 64 32 E3. Pear tree 36 36 36 E4. Apple tree 267 247 135 112 20 20 E5. Poplar tree 13 13 5 8 E6. Willow tree 19 19 6 13 E7. Greenhouse m2 1930 1930 1930 E8. Power Pole no. 11 10 8 2 1 1 E9. Telecom Pole

no. 18 18 18

4 Subdistrict (for urban areas) is equivalent to township administratively. 5 Class in relation to its distance to urban center.


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Source: FSR and field surveys

8. However, the LA&R impacts in the above table should be further verified and updated based on detailed measure survey (DMS) upon the availability of final engineering design of the trunk road.

2.2 Affected Vulnerable Groups

9. The groups include: (i) rural poor with the poverty line of 1,680 CNY per capita per year in 2011; (ii) households with disabled; (iii) elders of over 60 and are living alone; and (iv) single women-headed households. There are only two vulnerable households out of a total of 115 HHs affected by land acquisition, including one with two elders and another one with a disabled man and three able-bodied members. Among affected households of land acquisition there is neither single woman-headed nor ethnic minority household.


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3. Socio-economic Status and Impact Analysis

3.1 Gaizhou City and Affected Villages

3.1.1 Gaizhou City

10. The area of Gaizhou City is 2,930 km2, which accounts for 2% of Liaoning Province. The urban area, 21.55 km2, is divided into six subdistricts. In 2010, the total population is 0.73 million, including 0.18 million or 24.7% urban residents.

3.1.2 Affected Villages

11. The trunk road affects three villages in two subdistricts. The basic information of the three villages is shown in Table 3-1.

Table 3-1: The Basic Information of the Affected Villages

No. Subdistrict Village HHs Popu. Net income in 2010

(CNY/capita) Industry Structure (%)

1st 2nd 3rd 1

Dongcheng Xiangou 675 2,400 9,400 60 40

2 Honghuayu 1,200 3,300 8,800 60 40 3 Xicheng Chezhan 580 2,100 12,000 10 40 50 Total 2,455 7,800

Source: Village and subdistrict interviews (October 2011).

Note: Due to lack of reliable statistical data at village level, the net income and industrial structure are indicative.

3.2 Socio-economic Survey

12. A socioeconomic survey, together with various consultation activities, was carried out with the support of GPUREB in October 2011. The survey and consultations were conducted in order to: (i) prepare a socio-economic profile of the affected persons and affected villages as the basis for social impact assessment and (ii) discuss relevant issues regarding land acquisition and livelihood rehabilitation measures.

13. Key to the survey is the questionnaire survey of affected households of various types. Table 3-2 summarizes the sample distribution and representative status. As shown, 22 households (22.9% of the total 96 households) with 84 persons have been interviewed (25% of the total APs).

Table 3-2: Distribution of Surveyed Households Subdistrict Village Affected HHs Surveyed HHs Sampling (%)

Dongcheng 89 20 22.5

Xiangou 42 10 23.8 Honghuayu 47 10 21.3

Xicheng 7 2 28.6

Chezhan 7 2 28.6 Total 96 22 22.9


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3.3 Social-Economic Status of APs

3.3.1 Education and Occupation

14. Table 3-3 presents the education and employment status of surveyed HHs. As for education: (i) most of the APs have nine years' education (junior high school, 54.2%); (ii) illiteracy is very low and limited only to an older woman; and (iii) some people have more than nine years' education (high school and above, 12%).

15. As for employment status, among the 66 able-bodied labor force (78.6% of all persons from surveyed HHs): (i) 35 persons or 53% are mostly engaged in farming and a few of them also take part-time migration work; (ii) 17 laborers or 25.8%, mostly young persons, are migrant workers; and (iii) 14 persons or 21.2% are full-time workers and businesspersons.

Table 3-3: Education and Employment Status

Item Male Female Total

No. % No. % No. %Education

Literate 0 0.0 1 2.2 1 1.2 Elementary school 12 31.6 15 33.3 27 32.5 Junior high school 20 52.6 25 55.6 45 54.2

High school 3 7.9 3 6.7 6 7.2 Junior college 2 5.3 1 2.2 3 3.6

University 1 2.6 0.0 1 1.2 Total 38 100.0 45 100.0 83 100

Occupation Farmer 14 43.8 21 61.8 35 53.0

Migrant Worker 11 34.4 6 17.6 17 25.8 Business 5 15.6 4 11.8 9 13.6

Full-time Worker 2 6.3 3 8.8 5 7.6 Total 32 100.0 34 100.0 66 100

Source: Household Survey, 2011.

3.3.2 Land Resource

16. According to the sampling results, the average area of farmland of Xiangou, Honghuayu and Chezhan is 3.5, 4.9 and 2.95 mu per HH, respectively. For village averages, they are 3.8, 7.6 and 2.1 mu per HH, respectively. (see also Table 3-4).

Table 3-4: Land Resource

Subdistrict Village Surveyed HHs Land Resource (mu/HH)

Min. Max. Average Village

Average Dongcheng Xiangou 10 1.5 5.6 3.5 3.8

Honghuayu 10 2.8 6.8 4.9 7.6 Xicheng Chezhan 2 1.8 4.1 2.95 2.1

Source: Household Survey, 2011 and Village Statistics 2011.


17

17. The collective land in Gaizhou City was redistributed during Second Land Contracting Period in 1999. About 30% of the farmers leased out their lands, at an annual rent of 400 CNY/mu. Currently the main plants in the three affected villages are corn and fruits. The net incomes from corn and fruits sales are about 800 CNY/mu and 3,000 CNY/mu, respectively.

3.3.3 Income and Expenditure

3.3.3.1 Income and Expenditure

18. The household’s main income and expenditures in 2010 are shown in Table 3-5. According to the interview with affected villages, the average annual net income per person of Xiangou, Honghuayu and Chezhan was CNY9,474, 7,368 and 8,158respectively. The surveyed net incomes of affected households in Xiagou and Honghuayu are a little higher than those of the village statistics; while the net income of affected households in Chegou and Honghuayu village is lower than that of the village statistics. The income by source and expenditure items is given in Table 3-6 and Table 3-7, respectively. The local poverty line is CNY 1,680 per capita per year.

Table 3-5: Income6 and Expenditure of Affected Rural HHs in 2010

Subdistrict Village Surveyed HHs Min. Max. Average

Dongcheng

Xiangou Net income 10 1,579 26,316 9,474 Expenditure 10 1,316 18,421 5,263

Saving 10 0 13,158 4,211

Honghuayu

Net income 10 1,316 15,789 7,368 Expenditure 10 1,053 9,211 4,211

Saving 10 0 6,579 3,158

Xicheng Chezhan

Net income 2 5,789 10,526 8,158 Expenditure 2 3,947 6,579 5,263

Saving 2 1,842 3,947 2,895


Table 3-6: Income Structure

Contribution to total Income by source (%) Village Agriculture Migrant Work Salary Business Others TotalXiangou 32.6 46.5 5.9 6.1 8.9 100

Honghuayu 28.5 48.6 5.3 7.8 9.8 100 Chezhan 13.8 49.5 - 17.2 19.5 100


Note: Other income refers leasing houses, land and investment in financial market, etc.

6 The income levels are per person.


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Table 3-7: Surveyed Households' Expenditures in 2010

Village Expenditure by items (%)

Food Clothing Education Healthcare EntertainmentTransport/

Communication Presents Total

Xiangou 34.5 8.3 5.8 7.7 7.9 5.8 30 100 Honghuayu 35.6 8.5 5.5 7.6 8.5 6.3 28 100

Chezhan 38.6 9.1 4.9 7.5 9.3 5.6 25 100


3.4 Gender Analysis

19. There are no single women-headed households among affected HHs.

3.4.1 Gender Difference in Education

20. There is no significant difference in educational levels between male and females. Table 3-3 shows the details.

3.4.2 Gender Difference in Employment

21. As indicated in Table 3-3, there are differences in employment status between males and females: (i) 61.8% of women laborers are purely engaged in household based farming, while it is only 43.8% for males, yet about one-third of the male farmers engage in part-time or seasonal migration jobs and (ii) 17.6% of females are migrant workers, while it is 34.4% for males.

3.4.3 Gender Difference in Income

22. The difference in employment has resulted in income difference. Women’s contribution to household income is generally less than men’s. As indicated in Table 3-8, women’s contribution to HH income is less than 40%.

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

Subdistrict Village Surveyed

HHs Women’s Contribution (%)Min. Max. Average

Dongcheng Xiangou 10 15 60 40 Honghuayu 10 10 55 37

Xicheng Chezhan 2 25 40 35


3.4.4 Opinions on Resettlement

23. 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.


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Table 3-9: Concerns on Resettlement

Item Male (N=10) Female (N=12) Total (N=22)

ImportantNot

Important Important

NotImportant

Important Not

Important

1 Justice and reasonable compensation rates

100% 0% 100% 0% 100% 0%

2 Timely compensation 100% 0% 100% 0% 100% 0% 3 New career 40% 60% 33% 67% 36% 64% 4 Replacement farmland 20% 80% 25% 75% 23% 77% 5 Income loss 60% 40% 75% 25% 68% 32% 6 Future employment 60% 40% 67% 33% 64% 36% 7 Children’s education 40% 60% 50% 50% 45% 55%


3.5 Impact Analysis

3.5.1 Farmland and Income losses

24. A total of 108.6 mu of land will be acquired permanently from three villages, of which 83.6 mu or 77% is farmland and 25 mu or 23% is wasteland. The farmland loss accounts for 0.62% of the total farmland in the three villages; the per capita loss is 0.01 mu. Land acquisition impact of affected villages is shown in Table 3-10. In conclusion, impacts of land loss to the villages are very small.

Table 3-10: Land Loss Impact on Affected Villages

No. Village Xiangou Honghuyu Chezhan Total

1 HHs 675 1200 580 2,455 2 Rural population 2,400 3,300 2,100 7,8003 Farmland (mu) 2,560 9,167 1,200 13,527 4 Farmland loss (mu) 41.8 33.9 7.9 83.6 5 Farmland loss (%) 1.6 0.37 0.66 0.62 6 Farmland loss (mu/capita) 0.02 0.01 0.00 0.01 7 Farmland before project (mu/capita) 1.07 2.78 0.57 1.73 8 Farmland after project (mu/capita) 1.05 2.77 0.57 1.72 9 Income loss (%) 0.96 0.22 0.07 0.27

Source: Village statistics and land acquisition estimated by DI, 2011.

25. The extent and impact of farmland loss on affected HHs are shown in Table 3-11.


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Table 3-11: Farmland and Income Losses of Affected HHs

Extent and Impact of farmland Loss Affected HH

Total Dongcheng Xicheng

Xiangou Honghuayu Chezhan HH %Land loss Farmland loss of lower than 10% 0 1 0 1 1.0 Farmland loss of 10-30% 21 30 3 54 56.3 Farmland loss of 30-50% 20 15 4 39 40.6 Farmland loss of 50-70% 1 1 0 2 2.1 Farmland loss of 70-90% 0 0 0 0 0 Total 42 47 7 96 100 Income Loss Income loss of less than 10% 24 34 7 65 67.7 Income loss of 11-30% 18 13 0 31 32.3 Total 42 47 7 96 100 Average farmland per HH before LAR 3.5 4.9 2.95 Average farmland per HH after LAR 2.5 4.2 1.82

Source: Village Survey, 2011.

Note: Household’s income loss is calculated based on the data (Table 3-6) of sampling survey.

26. As shown in the above table, the land acquisition impact is rather severe among affected households: (i) 95 out of the 96 affected HHs, almost 100%, will lose more than 10% of their farmland and (ii) 31 or 32.3% out of the 96 affected HHs will lose more than 10% of their HH income. The income loss due to land acquisition is calculated according to agricultural income in the total income of affected HHs, as presented in Table 3-6, and extent of losing farmland in average HH. The detail calculation results are presented in Table 3-12. During the calculation, a high side value of different farmland loss is taken, which results in the number of affected HHs with income loss of more than 10% may be larger than the result in Table 3-11.

Table 3-12: Maximum Income Loss to Different Extent of Farmland Loss

Village Agriculture

Income in Total

Income Loss due to Land Acquisition (%)

Farmland Loss

% <10% 10-30% 30-50% 50-70% 70-90%

Xiangou 32.6 N.A. 9.78 16.3 22.82 N.A.

Honghuayu 28.5 2.85 8.55 14.25 19.95 N.A.

Chezhan 13.8 N.A. 4.14 6.9 N.A. N.A. N.A. – no households affected to this extent.

3.5.2 Affected Enterprises

27. There are two enterprises that will be partially affected by acquiring some land together with the demolishment of attached structures. Data of the two enterprises are given in the table below. Actually, the subproject will only have impact on one enterprise as another has collapsed and closed already. The enterprises could be rebuilt on their existing premises, if needed. Due to the enterprises will be affected partially in their workshop places, they don’t need to relocate to new places.


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Table 3-13: Basic Situations of the Affected Enterprises

Enterprise Land

Ownership

Current Operational

Status

Total Land Area (m2)

Total Structure

Area (m2)

Land to be

Acquired (m2)

Structure Demolition

(m2) Relocation

Employees Average Monthly Salary (CNY)

Total Male Female

Xinfa Gleithrette Factory

State Operation 1,000 500 300 120 Not needed

due to partially affected

10 8 2 2000

Xingtai Plastic Factory

State Closed 1,000 600 400 200 Not needed

due to partially affected

0 0 0 0


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3.5.3 Vulnerable Households

28. The land and income losses of the two vulnerable HHs are listed in the following table.

Table 3-14: Income Structures of Vulnerable Groups Affected by Land Acquisition

Type of

Vulnerability

Land acquisition impact Net income impact

Farmland (mu)

Farmland loss (mu)

Farmland loss (%)

Agriculture income (CNY)

Total income (CNY)

Income loss (%)

HH No. 1

Elderly (2 persons)

2.2 0.6 27.3 880 5,000 4.8

HH No. 2

Disabled (4 persons)

4.8 1.2 25.0 3,840 18,000 5.3

Note: 400 CNY/mu for land leasing for HH No.1 and 800 CNY/mu for self-cultivation for HH2.

29. The two households will not be affected badly in terms of income losses that would result from farmland acquisition, as agriculture is of lower importance to HH income. None are below the poverty line.

30. For HH No. 1, the major income is from remittances from their children while the compensation for the affected 0.6 mu of farmland will be 13,000 CNY. This is equivalent to 54-year land leasing fees, so the impact on this HH could be considered as positive if compensation can be managed in a planned manner.

31. As for HH No. 2, the economic status is not that bad, although there is a disabled man. The disabled man is still engaged in some light work. The land loss impact on this HH is also manageable. They can receive the compensation of CNY26,000, which is about 27 times the lost land production value.


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4. Public Participation and Consultation and Appeal Redress

32. According to the state, provincial, municipal and county policies and regulations on resettlement, the policies and implementation rules of land acquisition, house demolition and resettlement of the Project, and the RP have been further improved, and the organizing work for resettlement done properly in order to maintain the lawful rights and interests of the displaced persons and entities, reduce grievances and disputes, and realize the goal of proper resettlement. Great attention will be paid to the participation of and consultation with the displaced persons at the resettlement policy-making, RP preparation and implementation stages of the Project.

4.1Consultation during Project Preparation

4.1.1 Completed public participation activities

33. From August 2011 to April 2013, representatives of the affected people participated in many consultation meetings, and gave opinions on the project design, and compensation and resettlement for land acquisition. Also, a socioeconomic sample survey, a public opinion survey were conducted. These opinions have been well incorporated into the project design and the RP.

34. These meetings and surveys have played an important role in fixing reasonable compensation rates, and discussing income restoration programs and training programs. It was found through the public participation meetings and socioeconomic survey that the affected households are concerned about the following:

35. Since most of the acquired land is farmland, and some households have a high loss rate, the greatest concern of these households is the compensation rates should be comply with the national and provincial policies; and how to divide the land compensation between the village and the individual. And

36. Based on the above discussion, the IA has done the following activities:

(i) Discussed with the FSR preparation agency based on the concerns of the affected households to avoid substantial land acquisition;

(ii) Discussed with the county government to finalize the compensation standard to comply with the national and provincial policies; and

(iii) Organized village meetings in the affected villages to determine how to divide the land compensation.

37. Some important consultation activities/meetings at the preparatory stage are outlined in Table 4-1.


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Table 4-1: Consultation Activities During RP Preparation

Date Participants Number of persons

Purpose Major Discussion/suggestions Results

Aug. 5, 2011

DI, IA, GCC, HDO, GLRB 85 Discuss the survey schedule and coordination issues.

IA needs a detailed survey plan. DI and IA will propose the plan.

Sept. 27, 2011

DI, IA, GCRO, GLRB, GCAB, and three villages,

APs. 85

Understand the LA&R policies as well as the social security policies for APs. Discuss the survey plan.

Discussed the policy gaps of LA&R between Gaizhou City and ADB as presented in Section 5.4; Identified the survey areas.

Confirmed subproject scope and the affected villages.

Oct. 19-20, 2011

DI, IA, 3 VCs, APs 115

Conduct the survey; Collect data; Prepare compensation and rehabilitation plans.

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

Understand the APs’ socioeconomic status and their concerns on LA&R APs

January 2012

County PMO, RP preparation agency, TA consultants, affected

people, village officials

85 Discussion on training plan; Discussion on grievance address channels;

Finalizing the training plan. Reflected the result of the discussion in the RP.

Feb. 2012

Displaced households 115 Further defining the compensation rates and resettlement plan

Finalizing the compensation rate.

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

January 2013

DI, IA and three villages, APs.

96

Conduct the survey; Collect data; Further defining the compensation rates and resettlement plan

Finalizing the compensation rate. APs accepted the resettlement plan.


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DI: design institute; IA: implementing agency; GCC: Gaizhou City Construction Committee; GLRB: Gaizhou City Land Resource Bureau; GCAB: Gaizhou City Civil Affairs Bureau; GCRO: Gaizhou City Resettlement Office; VC: village committee

4.1.2 Perceptions and Concerns of APs

38. APs’ perceptions regarding LA&R are shown in Table 4-2. The respondents include 115 persons in 115 households affected by land acquisition. In general, APs support the project and believe they can be fairly compensated. Their major concerns were presented in Table 3-9.


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Table 4-2: Perceptions of APs

Questions Reply %

(1) Do you know about the subproject?

I know I know a little bit I know nothing about it

63.636.40

(2) When did you know about the subproject? Less than half a year ago One year ago Two year ago

100 0 0

(3) How did you know about the subproject?

Newspaper TV Village meetings Heard from neighbor, relative or friend Surveyors

0 0 0 9.1 90.9

(4) When did you first know that your land would be acquired or your house would be dismantled?

Less than half a year ago One year ago Two years ago

100 0 0

(5) Through what channel did you learn your land will be acquired or your house be dismantled?

Surveyors Village leaders disclosed information Village meetings Neighbors, relatives and friends

90.90 0 9.1

(6) Do you support the subproject?

Yes No Don’t care I don’t know

91 4.5 4.5 0

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

Yes No I don’t know

86.40 13.6

(8) Do you think the subproject will improve water and air quality in the local area, which will improve people's health?


90.90 9.1

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


90.90 9.1

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


100 0 0

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


100 0 0

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


95.50.0 4.5

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


100 0 0

(14) Do you think the subproject will lessen poverty? Yes No I don’t know

90.90 9.1

(15) Do you think women will benefit from the subproject?


72.70.0 27.3


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Questions Reply %

(16) How do you think the subproject will affect your living?

Better Worse No change I don’t know

77.20 9.1 13.6

(17) As a whole, do you think you will benefit from the subproject?

Yes Expects losses from the subproject I don’t know

72.79.1 18.2

(18) Are you fully aware of the impacts the subproject will raise?


86.40 13.6

(19) Are you familiar with the Notice on Implementation Land Acquisition of Comprehensive Standards by Liaoning Provincial Government?

I know I know a little bit I know nothing about it

59.127.313.6

(20) Do you think you will be fairly compensated? Yes No I don’t know

95.50 4.5

(21) Besides the compensation, do you think you will get the support from other government agencies during RP implementation?


86.40 13.6

39. 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.

4.2 Consultation and Participation Plan

40. Notwithstanding the consultations already carried out, executive agency (EA)/IA and the local government will carry out additional consultations during the implementation of LA&R. The principal activities to be taken are: (i) publication and dissemination of an RIB (See Annex 1) which summarizes the policies, entitlements, compensation standards, and grievance procedures; (ii) formal meetings to ratify the options related to compensation disbursement and utilization; (iii) DMS to finalize land and other property losses for each affected household; and (iv) consultation of APs and their village committees (VCs) during LA&R. The participants of consultation sessions will include both women and men. Table 4-3 presents the C&P plan.

Table 4-3: Consultation and Participation Plan

Purpose of Event Tasks Date Participating

Agencies Participants Remarks

1. Publicizing of the RP

RIB distribution

August 2013

IA, GCRO, Village All affected

HHs

Distribution of RIB to every affected HH

2. DMS and Consultation

Meetings with APs

Sept-Oct 2013 IA, GCRO, Village 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, GCRO, Village All affected HHs

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


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rehabilitation measures

4. Disclosure of final RP

Distribution Dec. 2013 IA, GCRO, Village All APs Distribution of final RP in the affected villages/community.

4.2.1 Participation in Construction

41. In order to enable APs to benefit from the subproject, opportunities or priorities will be given to the local people, especially APs for construction material supply and employment opportunities. The social development action plan (SDAP) of the project will specify measures to enable APs and local people to benefit from construction activities.

4.2.2 Woman’s Participation

42. 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.

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

44. 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 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.

4.3 Disclosure of Resettlement Plan

45. The resettlement can be a development opportunity. The resettlement plan’s disclosure and explanation 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. IA will propagate RIB and publicize RP to all the APs before the resettlement implementation.

4.4 Appeal and Grievance Redress

46. The public participation is always encouraged in the process of preparing and implementing 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 village committee (VC) in oral or in written form. If an oral appeal is made, the VC will record it on paper and process it.


29

The village committee will make a decision on or resolve it in two weeks.

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

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

(iv) If the aggrieved AP is still not satisfied with the decision of the GCRO/GLRB, he/she can appeal to the GPMO (i.e., LPMO for all subprojects). After receiving the appeal, the GPMO or GPUREB will reach a decision in two weeks.

(v) If the AP is still dissatisfied with the above decisions, he/she can appeal to the civil division of a people’s court according to the civil court procedure.

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

48. 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 IAs will process the information in a timely and effective manner.

49. 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.

50. The aggrieved person may also express grievance to the external monitor, who would then report it to GCRO/GLRB, GPUREB, 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).7

7 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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5. Legal Framework and Policies

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); and

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

5.1.3 Main Policies of Liaoning Province and Gaizhou City

55. The main policies of Liaoning Province and Gaizhou City 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); and

(iii) Methods of Urban Area Resettlement and Reconstruction of Gaizhou City (No. [2006] 66), which includes villages in the urban planning area.

5.1.4 Policy Objectives

56. Policy objectives include:

(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


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real terms relative to pre-project levels; and

(iv) Improving the standards of living of the displaced poor and other vulnerable groups.

5.2 Summary of ADB's Policy Requirements on Involuntary Resettlement

57. 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.

58. 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.

59. 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.

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

61. 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 Laws, Regulations, and Policies of PRC and Liaoning Province

62. Main articles of the laws, regulations, and policies of PRC, Liaoning Province, and Gaizhou City are quoted in Annex 2.

5.4 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.


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Table 5-1: 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

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,

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


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vulnerable groups are assisted through existing local government programs.

vulnerable groups.

6

APs with lack of land or property ownership rights should still be eligible for compensation and rehabilitation; although ADB does not require compensation for land in such cases, solutions must be found to ensure APs are no worse off

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 are not adequate.

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

This project doesn’t have this issue.

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.


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5.5 Compensation Standards

5.5.1 Permanent Collective Land Acquisition

64. The compensation standards follow the law and polices listed in Subsection 5.1.3: (i) Implementation Regulations of Land Administration Law of PRC in Liaoning Province; (ii) Implementation of Regional Integrated Land Price in Land Acquisition in Liaoning Province; and (iii) Methods of Urban Area Resettlement and Reconstruction of Gaizhou City. The land compensation standards are shown in Table 5-2. The unified compensation standards are determined based on land type and location.

65. The relevant taxes and fees include: (i) 35 CNY/m2 of farmland occupation tax, (ii) 10 CNY/m2 of farmland reclamation fee, (iii) 28 CNY/m2 of utilization fee of new construction land, and (iv) 1.8 CNY/m2 of land acquisition administrative fee.

Table 5-2: Collective Land Acquisition Compensation Standards

Land Type Area class Land

Compensation (CNY/mu)

Resettlement Compensation

(CNY/mu) Total (CNY/mu)

Farmland Class 1 25,000 15,000 40,000 Class 3 15,625 9,375 25,000

Standing crops 1,500

Wasteland Class 1 - - 32,000 Class 3 - - 20,000

5.5.2 Compensation Standards for Affected Enterprises

66. The compensation standards for acquiring land and buildings of affected enterprises, together with various other costs are given in Table 5-3. The enterprise stoppage is one month. The compensation for the business stoppage is based on the number of staff in the affected enterprise. In fact, all workers are not affected by the project because they receive their salary as usual. They will not leave the enterprise. They will move goods into new structures and do other work during the stoppage.

Table 5-3: Compensation Standards and Costs for Affected Enterprises

Item Unit Standard

(CNY/unit)Note

Building m2 1,500

Facilities Based on actual

quantity

Based on the results confirmed by two parties

Others

Production Stoppage Subsidy Worker 2,500 625 CNY for the staff,

1,875 CNY for the owner Based on 1 month of work stoppage

Storage Subsidy m2 7

Moving Subsidy Enterprise 520 Cash compensation

2 shifts for each enterprise]


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Land Compensation m2 160 Transfer of state land8.

Note: the compensation standards are indicative for 2011 and will be updated prior to acquisition.

5.5.3 Compensation Standards for Attachments and Infrastructures

67. The compensation standards for attachments and infrastructures are shown in Table 5-4.

Table 5-4: Compensation Standards of Attachments and Infrastructures

Item Unit Standard (CNY/unit)

Peach tree Tree 150

Plum tree Tree 150

Pear tree Tree 150

Apple tree Tree 200

Poplar tree Tree 100

Osier tree Tree 100

Greenhouse m2 80

Power pole Pole 10,000

Telecom pole Pole 3,000

5.6 Compensation Entitlements

68. All APs or institutions are entitled to compensations for the affected properties (land, buildings, crops or income sources) confirmed during DMS.

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

8 It is a price to transfer a piece of state land from one entitled user to another. The land has been serviced


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Table 5-5: Entitlement Matrix Type of Impact

Degree of Impact

Eligibility Compensation and Resettlement Policies Implementation Arrangements

Permanent collective land acquisition

83.6 mu farmland and 25 mu wasteland

a) Three villages b) 96 HHs

(i) Xiangou and Honghuayu villages: the farmland and wasteland compensation standards are 25,000 CNY/mu and 20,000 CNY/mu, respectively. (ii) Chezhan Village: farmland and wasteland compensation standards are 40,000 CNY/mu and 30,000 CNY/mu, respectively. (iii) For farmland, no less than 80% of compensations will be paid to affected HHs; while less than 20% of the compensation paid to the villages will be used for public welfares and/or for village development activities. (iv) For wasteland, 100% compensation is paid to the villages. (v) Compensation for standing crops will be paid to owners directly with CNY1,500/mu.

Notice should be given at least one month before land acquisition. Local government will approve and supervise the use of the compensation funds paid to the village. The utilization of funds provided to the village collective will be decided by a meeting of village representatives.

Acquisition of land and buildings of enterprise

700m2 of state-owned land and 520m2 of buildings

Two enterprise owners and 10 employees

(i) Cash compensation at replacement cost for buildings: 1,500 CNY/m2. (ii) Storage subsidies: 7 CNY/m2 (iii) Transport subsidy: 520 CNY/enterprise. (iii) Land transfer compensation: 160 CNY/m2. (iv) Production stoppage subsidy: 2,500 CNY/employee

In case affected enterprises prefer to relocate elsewhere, GPUREB is responsible for finding relocation sites.

Illegal or unregistered structures

None affected None Replacement value of structures (excluding land) and moving allowance.

Impacts will be confirmed during DMS

Attachments losses

Various objects on the ground

The property owners

See Table 5-3. Notice should be given at least one month before the land acquisition.

Vulnerable Group

Vulnerable HHs affected by land acquisition

Two HHs No special financial assistance now.9

VC and local government agencies will provide necessary assistances as needed.

9 They are vulnerable families but not poor. They have steady income not from farmland only. However, VC like to provide any assistance if they required.


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6. Income Rehabilitation Plans 6.1 Income Rehabilitation

70. The subproject will result in 95 or 99.0% of the 96 affected households losing more than 10% of their farmland (see Table 3-11), yet only 31 HHs (32.3%) of them will lose more than 10% of their annual incomes because APs are no longer dependent on cultivation of land for the income and living. The 44 HHs that lose more than 10% of their income are classified as severely affected people in this RP10. According to the policy requirements of ADB, income rehabilitation plan needs to be developed and implemented for these severely affected households. The following subsections present the plan (i.e., key components of the rehabilitation plan).

6.1.1 Compensation Utilization by the Collectives

71. A certain portion of the land compensation funds (between 0 and up to 20%), according to villagers’ collective decision, remain with the collectives (i.e., villagers’ committee), according to the provincial policy. In addition, all compensation for acquiring the wasteland will be paid to the collectives.

72. Any compensation kept by the collectives will be used for improving agricultural production and all villagers' welfare of the whole village. The use of the compensation funds will be decided by the villagers’ representatives meetings and will be supervised by local township government.

6.1.2 Employment in Non-Farm Sectors

73. Non-farm employment accounts for the main income source for 47% of the laborers among APs (see Table 3-3), and thus will be the main source of income rehabilitation for APs, since there are plenty of such opportunities in Gaizhou and the big cities nearby (e.g. Dalian, Shenyang, and Yingkou).

74. With the urbanization development, there are many building construction projects in Gaizhou city. Lack of construction laborers become one of big issues in Gaizhou. Every year, many migrant laborers come to Gaizhou from other cities or provinces and work on the construction sites. At the same time, Gaizhou government helps local rural laborers to work on non-farm sectors. In 2010 and 2011, 7,399 and 16,794 rural labors in Gaizhou city were transferred to non-farm sector labors. In 2012, the government plan to transfer more than 10,000 rural laborers to non-farm sectors. The rural laborers can work in not only building construction sector, but also in local enterprises such as energy, chemical, garment and electronic industry sectors, and service sector in urban area of surrounding cities. Most of labors can earn CNY2,000 to 3,000 per month and work for 8 months per year in average, so their annual incomes are CNY16,000 to 24,000, higher than their agricultural income. Female labors can earn CNY1,200 to 2,000 per month in garment factory or at home. Gaizhou is establishing “Motor Capital of China” now. Many rural labors will have opportunity to work in non-farm sectors locally. Gaizhou government will provide more skill training and employment opportunity to farmers affected by the project and urbanization, especially to those who will lose more than 10% of farmland.

75. Within an economic active region, more and more investors are seeking opportunities to

10 ADB used to define severely affected person as those who lose over 10% of their production assets.


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establish various enterprises in Gaizhou in recent years, which is close to Yingkou. Currently, there are 10 enterprises in the Dongcheng Subdistrict (Industrial Zone), and these enterprises are engaged in energy, chemical industry, garment industry, and electronic products. Yet a dozen more are under establishment. Therefore, there will be a lot of non-farm employment opportunities even in Gaizhou alone. Local governments will coordinate with new enterprises to have preferential arrangements for employing APs based on skill training. The skill training, to be organized by local governments, itself is also an important supportive measure of the income rehabilitation plan and it is presented in the coming sub-section.

Xiangou and Honghuayu Villages: Xiangou and Honghuayu villages are located in Dongcheng subdistrict in which an industrial zone is under development. Many rural laborers both male and female have transferred as workers and are working in enterprises such as energy, chemical, garment and electronic industry sectors in the industrial zone. Many farmers have worked in service sector like hotel, restaurants, cleaner, etc in urban area of surrounding cities. Due to high incomes rural laborers like to work in enterprises in full or part time. Dongcheng government has established a program for rural labor transformation and employment in non-farm sectors. They will provide more employment information to APs, work with enterprises for skill training, and support APs to work in the enterprises. Chezhan Village: Chezhan village is in Xicheng subdistrict, and near urban area of Gaizhou city. With expansion and urbanization, the farmland area of the village has reduced largely in recent years. Therefore, most of rural labors have left farmland and move into urban area. Some of them open small businesses in urban area. Some of them work in services sector such as hotel, restaurants, cleaner, etc. And some of them work in building construction. They can earn more income than agricultural production. Xicheng government will assist APs in skill training and job introduction. There are many job opportunities in Gaizhou, Yinkou and Dalian cities due to urban construction.

6.1.3 High-value Farming

76. Using the compensations to invest in high-value farming on the remaining farmland (like greenhouse vegetable, fruit, and sizable livestock) will enable some APs (often the older laborers and women) to partly recover their income loss. Training activities are also arranged for high-value farming.

Xiangou and Honghuayu Villages:

After land acquisition of the project, affected households in Xiangou and Honghuayu villages still have farmland to cultivate. GPMO will work with Gaizhou Agricultural Bureau and affected village committees to introduce new agricultural techniques to APs. APs can use compensation to change their planting structure. They can invest in fruit planting to increase their farmland production value that can reach net income of CNY3,000 per mu. They also can invest in greenhouses to plant vegetables to increase agricultural income, which can reach net income of CNY4,000 to 5,000 per mu.


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Chezhan Village: Chezhan village is near urban area of Gaizhou. Development of greenhouse vegetables is a good way to increase APs’ income. Land compensation in average household is CNY28,613, CNY19,574 and CNY39,500 (not including young crop compensation) for affected households in Xiangou, Honghuayu and Chezhan villages, respectively. If investing to fruit planting (apple), the initial cost is about CNY6,000 per mu, and annual operation cost is about CNY1,500 per mu. The production is about 2,000kg per mu, and sell about CNY8,000 per mu, and get net CNY6,500. If investing to greenhouses for vegetable planting, the initial cost is about CNY20,000 per mu, and annual operation cost is about CNY2,500 per mu. The production is about 4,000kg per mu, and sell about CNY20,000 per mu, and get net CNY17,500.

6.1.4 Skill Training

77. As mentioned above, there will be a lot of non-farm employment opportunities in Gaizhou and most of the APs, especially the young ones, could be transferred to the non-farm sectors if proper skill training could be provided. According to the consultation during the RP preparation, female laborers like to learn weaving and sewing because they can do such work in local garment factories or at home. Male laborers like to learn some skills that are easy to master and hope to find non-farm work in places not far from their city, such as construction, manufacture and house decoration. In addition to local government agencies’ routine training opportunities, this RP sets an 100,000 CNY fund to for APs for both non-farm and farm skill training. Table 6-1 presents the training plan and schedule.

Table 6-1: Training Plan (2014-2015)

Contents No. of

Courses Organizers

No. of Trainees

Date

1. Weaving and sewing (for garment factory)

2

Gaizhou City Labor & Social Security Bureau, Agricultural Bureau, Women’s Federation, etc.

50 (female) 2013

2. Other non-farm skills

2.1 Construction

2.2 Manufacture

2.3 House decoration

3 50 2013-2014

3. High-value farming 3.1 Fruit Planting 3.2 Greenhouse Vegetable

6 100 (60 female) 2013-2015

Total 200 (110 female)

6.1.5 Employment in Project Construction

78. During subproject construction, some unskilled labor will be required. IA will coordinate with contractors to employ APs to the maximum extent. A contract clause will be included to specify the employment of APs for unskilled jobs, if any. The project can create 2,520 job positions during the construction. GPMO will work with Dongcheng and Xicheng governments for exchanging job information and rural labor information, and assist


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contractors to recruit APs to work on the project.

6.2 Resettlement of Enterprises

79. The affected properties of the two enterprises will be compensation at replacement costs. Of the two affected enterprises, the Xingtai Plastic Factory has been closed and reconstruction is not needed, while the Gleithrette Factory is still under operation and will need some reconstruction on its remaining land. The latter will rebuild the affected buildings itself prior to project construction. Its operations and employees, therefore, will not be affected.


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7. Institution Arrangement

.1 Institution Set-up

80. The PMO of Liaoning Province is the executing agency of the overall project, which has seven subprojects, including this one. The GPUREB is the IA of the subproject. A LA&R department will be set up to manage the resettlement issues. Actual LA&R will be carried out by the GCRO and GLRB with the assistance of subdistrict offices and affected villages. The institutional set-up is shown in the chart below.

Figure 2: Resettlement Institutional Structure

7.2 Responsibilities

81. Responsibilities of relevant agencies are shown in Table 7-1.

Table 7-1: Responsibilities

Agency Responsibilities

Liaoning PMO Oversee RP implementation Submitting implementation progress reports to ADB Entrusting external monitor

Gaizhou PMO and GPUREB

Liaoning Province Government

Liaoning PMO

Gaizhou City Resettlement Office

Land Resource Bureau

Subdistrict Office

APs, Affected Villages and Enterprises

External Monitor


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Agency Responsibilities

Gaizhou PMO and GPUREB

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

GLRB

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

GCRO

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

Subdistrict Office

Assisting GPUREB, GLRB, and GCRO to carry out LA&R in a transparent way Solving conflicts and problems Reporting to GCRO/GLRB on problems without resolution at subdistrict

Village Committee

Participating in socio-economic survey Participating in preparation of resettlement plan Assisting GPUREB 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 and ADB

7.3 Capacity Building

7.3.1 Resettlement Staff Training

82. The PMO will organize a series of training of subproject resettlement staff 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 November 2013.

83. ADB will be requested by PMO to provide assistances to train the resettlement staff.

7.3.2 Measures to Strengthen the Capacity Building

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

(i) Gaizhou PMO and GPUREB will have sufficient staff, fund, and equipment;

(ii) Gaizhou PMO and GPUREB will establish resettlement-related database; and

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


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8. Monitoring & Evaluation

85. In order to ensure smooth implementation of the RP and achieve the proposed objectives of resettlement and rehabilitation, Gaizhou PMO and GPUREB will undertake M&E. There will be both internal and external monitoring.

8.1 Internal Monitoring

86. GPUREB, under the supervision of LPMO, will carry out internal monitoring with the assistance of GCRO, subdistrict offices, and affected villages. Internal monitoring will be basically focused on resettlement progress. The GPUREB will prepare a detailed internal monitoring plan.

87. During RP implementation, GPUREB 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. This subproject doesn’t have residential house demolition impact, however, standard tables will be used for comparison across the project as a whole. Table 8-1 and Table 8-2 provide some sample formats.

Table 8-1 Implementation Progress ______, ______ Township/Subdistrict, Gaizhou City 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

Payment of land compensation CNY

Compensation for house demolition CNY

Relocated HH 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 8-2 Fund Use ______, ______Township/Subdistrict, Gaizhou City Cut-off date: MM/DD/YY Reporting period:

Towhnship/Subdistrcit Compensation disbursement during

this reporting period (CNY) Accumulative total

Plan (CNY) Actual (CNY) % Plan (CNY) Actual (CNY) % Huanren Baguacheng Total


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

88. 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.

89. Upon completion of all resettlement activities and before closing ADB loan account, IA will prepare a resettlement completion report which will then be forwarded to ADB by PMO after its review and approval.

8.2 External Monitoring and Evaluation

90. PMO will hire 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. 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.

91. PMO has separately prepared a Terms of Reference for external M&E of all subprojects (See Annex II).

8.2.1 Scope and Methods

8.2.1.1 Baseline Survey

92. 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% of HHs affected by land acquisition). 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) Income by source

(v) Expenditure by type

(vi) Major assets ownership

(vii) Cropping pattern (cultivated area of each crop). 8.2.1.2 Regular Monitoring and Evaluation

93. 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


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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.

94. 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

95. 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

96. 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 Requirements on reports

97. 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.

Table 8-3 Reporting Schedule

Date Item

December 2013 Signing contract with independent monitoring agency and preparing TOR of M&E.

January 2014 Preparing work plan of external M&E, including: preparing TOR of survey and form; establishing monitoring system; confirming tasks; and confirming monitoring points.

January 2014 Preparing Baseline Survey.


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February 2014 Submitting No. 1 Monitoring Report.

August 2014 Submitting No. 2 Monitoring Report.

February 2015 Submitting No. 3 Monitoring Report.

December 2015 Submitting Evaluation or Completion Report.


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9. Implementation Schedule

9.1 Principles for Resettlement Implementation

98. According to the implementation schedule of the subproject, the construction works will commence in 2014 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 in January 2014 and end in December 2015. 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.

(iii) 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 Implementation Schedule

99. 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: Implementation and Supervision Milestones


Agency Deadline





2. RP Updating based on DMS 2.1 DMS GPUREB and DI Sep-Oct 2013 2.2 Disclosure of final RP 10 copies GPUREB Nov 2013 2.3 Final RP GPUREB Nov 2013



GPUREB June 2013

3.2 IA, FLRB, and GCRO capacity building 30 staff Aug-Sep 2013 3.3 Designate village authorities July 2013



GLRB/GCRO

Dec 2013 - Feb 2014


2014


2014


48


Agency Deadline

5. M&E


LPMO and

GPMO Dec 2013



PMO 2014-2015



GPMO Dec 2016


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10. Resettlement Budget

10.1 Budget

100. The resettlement budget is CNY 9.74 million, accounting for 6.4% of the total investment (CNY 152.87 million) of the proposed subproject. The budget includes: (i) CNY 2.94 million for compensation of collective land acquisition; (ii) CNY 0.62 million for compensation to affected enterprises; (iii) CNY 0.42 million for compensation of affected attachments; (iv) CNY 0.24 million as cost for administration, M&E, and training; (v) CNY 4.72 million for taxes and fees; and (vi) CNY 0.8 million as contingency. Details of the budget are shown in Table 10-1.

Table 10-1: Resettlement Budget

Items Quantity Unit Compensation

Standard (CNY)

Cost (104 CNY)

A. Basic Cost 398.88I. Collective land acquisition & resettlement 294.19

1. Land acquisition compensation 108.6 mu 281.65 1.1 Farmland acquisition compensation 83.6 mu 220.85

Class 1 7.9 mu 40,000 31.60 Class 3 75.7 mu 25,000 189.25

1.2. Wasteland acquisition compensation

25 mu 60.80

Class 1 9 mu 32,000 28.80 Class 3 16 mu 20,000 32.00

2. Standing crops compensation 83.6 mu 1,500 12.54 II. Acquisition of land and buildings of affected entreprises

62.34

1 Affected buildings compensation 320 m2 1,500 48.00 2. Other compensations 0.32

2.1 Storage subsidy 320 m2 7 0.22 2.2 Transport subsidy 2 hh 520 0.10

3. Land transfer compensation 700 m2 160 11.20 4. Production stoppage subsidy 2500 2.50

4.1 Enterprise 2 units 4.2 Workers 10 person

III. Infrastructure 42.35 Peach tree 191 150 2.87 Plum tree 96 150 1.44 Pear tree 36 150 0.54 Apple tree 267 200 5.34 Poplar tree 13 100 0.13 Osier tree 19 100 0.19 Greenhouse 1930 m2 80 15.44 Power poles 11 set 10,000 11.00 telecom poles 18 set 3,000 5.40

B. Administration, M&E and training cost 23.961. Internal M&E and supervision (preparing RP report, purchasing equipment)

1% of A 3.99

2. RP implementation management cost (including staff training)

2% of A 7.98

3. Skill training for APs 10.00 4. External M&E 0.5% of A 1.99


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Items Quantity UnitCompensation

Standard (CNY)

Cost (104 CNY)

C. Taxes and fees 471.55Farmland occupied tax 83.6 mu 23,333 195.06Farmland reclamation fee 83.6 mu 6,667 55.74 Compensation for new construction land 108.6 mu 18,667 202.72 Land acquisition administration fund 108.6 mu 1,200 13.03 Land survey fee 5.00

Subtotal (A+B+C) 894.39 D. Contingency 20% of A 79.78Total (A+B+C+D) 974.17

10.2 Fund Flow

101. GPUREB will be responsible for the payment of compensations. Compensations must be paid within three months of APs' signing their compensation agreements with GCRO. Figure 3 shows the compensation flow.

Figure 3: Compensation Flowchart

Gaizhou City Financial Bureau

GPUREB

Village Committee

Owner of Ground Attachments

Affected People

Agencies Collecting Taxes and Fees

Affected Enterprises


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Annex I Resettlement Information Booklet

1. Subproject Description

The subproject consists of three components: (i) construction of Beichen Road of 4.3 km; (ii) reconstruction of Honghuayu Road of 2.2 km; and (ii) pavements of 50 laneways. The construction of Beichen Road will result in permanent acquisition of land and buildings of three villages and two enterprises. To safeguard the interests of APs, LA&R will follow an RP specifically prepared for the subproject

2. Land Acquisition and Resettlement Impact

The subproject will permanently acquire 108.6 mu (7.2 ha) of collective land, including 83.6 mu of farmland and 25 mu of wasteland from Xiangou, Honghuayu, and Chezhan villages. In addition, it will also acquire 1.1 mu land, together with 320 m2 of buildings, from Xinfa Gleithrette Factory and Xingtai Plastic Factory.

3. Compensation Standards

The compensation standards are given in the table below based on 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). These standards will be updated before actual LA&R if there are new LA&R polices. The set standards are to be used by APs to rehabilitate and improve their living standards.

Table A1: Collective Land Compensation Standards

Land Types Class Land Compensation

(CNY)

Resettlement Subsidy (CNY)

Total (CNY/mu)

Farmland Class 1 25,000 15,000 40,000

Class 3 15,625 9,375 25,000

Standing crops 1,500

Wasteland Class 1 - - 32,000

Class 3 - - 20,000

4. Entitlement Matrix

Table A2: Entitlement Matrixes Type of Impact

Degree of Impact

EligibilityCompensation and

Resettlement Policies Implementation Arrangements

Permanent collective land acquisition

83.6 mu farmland and 25 mu wasteland

a) three villages b) 96 HHs

(i) Xiangou and Honghuayu villages: the farmland and wasteland compensation standards 25,000 CNY/mu and 20,000 CNY/mu, respectively. (ii) Chezhan Village: farmland and wasteland compensation standards are 40,000 CNY/mu and 30,000 CNY/mu, respectively. (iii) No less than 80% of compensations will be paid to affected HHs.

Notice should be given at least one month before land acquisition Local government will approve and supervise the use of the compensation funds paid to the village


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Type of Impact

Degree of Impact

EligibilityCompensation and

Resettlement Policies Implementation Arrangements

(iv) The less than 20% of the compensation paid to the villages will be used for public welfares and/or for village development activities (v) 100% compensation for wasteland will be paid to villages. (vi) Compensation for standing crops will be paid in CNY1,500/mu to owners directly.

Attachments losses

Various objects on the ground

The property owners

Compensation at replacement costs

Notice should be given at least one month before the land acquisition.

Vulnerable Group

Vulnerable HHs affected by land acquisition

Two HHs No special financial assistance now

VC and local government agencies will provide necessary assistances needed.

5. Compensation Eligibility and Cut-off Date

All APs and organizations (whether public or private) losing land, buildings/houses, crops or sources of income will be compensated or rehabilitated according to the types and amount of their losses (permanent and temporary) as long as they are included in the final DMS (scheduled in December 2012) or are identified as affected by temporary impacts during construction.

APs who cultivate land, construct buildings or settle in project affected areas after the cut-off date will not be eligible for compensation or subsidies. Compensation will also not be paid for any structures erected, or crops and trees planted purely for the purposes of gaining additional compensation, but those due to variation of design will be compensated as specified in the RP.

6. Appeals

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 in oral or in written form. If an oral appeal is made, the VC will record it on paper and process it. VC will make a decision on or resolve it in two weeks. and/or

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

(iii) If the aggrieved AP is not satisfied with the decision of the subdistrict office, he/she can appeal to GCRO or GLRB after receiving the decision; the GCRO/GLRB will reach a decision in two weeks.

(iv) If the aggrieved AP is still not satisfied with the decision of the GCRO/GLRB,


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he/she will appeal to the PMO (i.e., EA for all subprojects). After receiving the appeal, the PMO will reach a decision in two weeks.

(v) If the AP is still dissatisfied with the above decisions, he/she will appeal to the civil division of a people’s court according to the civil court procedure.

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 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 IAs 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.

102. The aggrieved person may also express grievance to the external monitor, who would then report it to GCRO/GLRB, IA, 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).11

7. Implementation Schedule

Table A3: Implementation Schedule


Agency Deadline





2. RP Updating based on DMS

2.1 DMS GPUREB and DI Sep-Oct

2013 2.2 Disclosure of final RP 10 copies GPUREB Nov 2013 2.3 Final RP GPUREB Nov 2013



GPUREB June 2013

3.2 IA, FLRB, and GCRO capacity building 30 staff Aug-Sep 2013 3.3 Designate village authorities July 2013



GLRB/GCRO

Dec 2013 - Feb 2014


2014


2014 11 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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Agency Deadline

5. M&E


LPMO and

GPMO Dec 2013



PMO 2014-2015



GPMO Dec 2016


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Annex II Laws and Regulations of PRC and Liaoning Province

(1) Land Law of PRC

Article 47: For land acquired, compensation shall be given in accordance with the original use of the land.

Compensation for the cultivated land acquired includes land compensation, resettlement subsidies as well as compensation fee for attachments and standing crops. Compensation fee for the cultivated land requisitioned shall be 6-10 times of the AAOV in the last three years. Resettlement subsidies shall be calculated on the basis of the agricultural population. The agricultural population shall be calculated on the basis of the amount of cultivated land acquired divided by the per capita average land holding prior to land acquisition. Resettlement subsidies for per the agricultural person shall be 4-6 times of the AAOV in the past three years. However, the maximum resettlement subsidies for cultivated land per hectare shall not exceed 15 times of the AAOV in the past three years.

Additional resettlement subsidies may be provided for those who cannot maintain their original living standards on the basis of land compensation fee and subsidies for resettlement the payment pursuant to the provisions of the above-mentioned article subject to the approval of People’s Governments of the provinces, autonomous regions, and municipalities directly under the Central Government. However, the total of land compensation fee and subsidies for resettlement shall not exceed 30 times of the AAOV in the past three years.

(2) “Bylaws of Acquisition and Compensation of Houses on State-own Land”

Article 10: Houses acquisition departments prepare the compensation scheme, and submit to the government of city and town for approval.

The governments of city and town should organize the relevant 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 compensation should be given to the AP by the governments of city and town where decide to acquire houses include:

1) Price difference of the acquired houses;

2) Compensation of the relocation and temporary resettlement caused by houses acquisition; and

3) Compensation of the stop production and shutout caused by houses acquisition.

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 APs can choose either cash compensation or property exchange.

For the ones choose property exchange, the government of city and town should provide the houses for property exchange, and calculate and settle the value of the acquired house and price difference between the houses for exchange together with the APs.

Article 27: Compensation should be paid before relocation during the implementation of houses acquisition.

(3) The Tentative Bylaws of Farmland Occupancy Tax of PRC

Article 5: The farmland occupancy tax is set according to:


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The area with per capita farmland less than 1 mu ("area" refers to the county), the tax is 10~50 CNY/m2;

The area with per capita farmland between 1~2 mu ("area" refers to the county), the tax is 8~40 CNY/m2;

The area with per capita farmland between 2~3 mu ("area" refers to the county), the tax is 6~30 CNY/m2;

The area with per capita farmland over 3 mu ("area" refers to the county), the tax is 5~25 CNY/m2.

(4) Decision on Deepening Reform and Strengthening Land Management by the State Council

Article 12: Improving the land compensation. County government or above must take concrete measures to ensure the living standards of the APs can at least restored. The Provincial Government must make and publicize the average annual output value (AAOV) and the comprehensive land prices for each county and city. The compensation for the same types of land should remain consistent. All the relevant resettlement cost in the national key development project should be included in the total project cost estimates.

Article 13: Proper rehabilitation measures for the farmers with the lost land. The county government or above must take concrete measures to ensure the sustainability of APs. 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 APs 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 replacement land or sufficient compensation. The provincial government must make compensation allocation schemes for the collective-owned land. The principle is that the major compensation fund should be allocated to the affected households. 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.

(5) Liaoning Provincial Implementation Regulation of Land Administration Law of PRC

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

The land compensation standards are 6-7 times of AAOV in the last three years prior to land acquisition for the urban infrastructure projects for the public purpose, which are outside of the planned urban area; the land compensation standards are 8-10 times of AAOV in the last three years prior to land acquisition for other purposes of the project.

The resettlement subsidies are 4-6 times of AAOV in the last three years prior to land acquisition. However, the maximum resettlement subsidies for farmland per hectare shall not exceed 15 times of the AAOV in the past three years.


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Additional resettlement subsidies may be provided for those who cannot maintain their original living standards on the basis of land compensation fee and subsidies for resettlement the payment pursuant to the provisions of the above-mentioned article subject to the approval of People’s Governments of the provinces, autonomous regions, and municipalities directly under the Central Government. However, the total of land compensation fee and subsidies for resettlement shall not exceed 30 times of the AAOV in the past three years.

Article 24: The compensation standards for other types/purpose of land and the resettlement subsidy are:

The land compensation standards are 4-6 times of AAOV of adjacent dry land in the last three years prior to land acquisition for the forestry land, grassland, reed pond, breed aquatics pond, and land for water resources infrastructures.

The land compensation standards are 2-3 times of AAOV of adjacent dry land in the last three years for land with public facilities owned by town/township or village, township enterprises, and rural housing plot.

The land compensation standards are 5-7 times of AAOV of adjacent dry land in the last three years for idle land, waste stack, wasteland, waste plain, and unutilized land.

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

As for forestry land, grassland, reed pond, breed aquatics pond, land for water resources infrastructures, and rural construction land, Resettlement subsidies for per the agricultural person shall be four times of the AAOV in the past three years. However, the maximum resettlement subsidies for cultivated land per hectare shall not exceed 10 times of the AAOV in the past three years.

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 attachments and young crops are:

The attachments are compensated based on their values and actual costs and

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

Any trees, standing planted crops, and buildings are not entitled to be compensation after the land acquisition notice is 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 town/village public infrastructures.

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

(6) Notice on Implementation Land Acquisition Area Comprehensive Land Price Standards by Liaoning Provincial People's Government Office

1) This land acquisition area comprehensive land price standard refers to the summation of the compensation fees and resettlement subsidy fee for acquiring general agricultural land;


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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 compensation for the owners. The detailed compensation standard (except for the compensation for trees) 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 farmer’s land according to law, 80% of land acquisition compensation fee is owned by farmers and 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 laws.

4) If the project construction or geological survey needs to use country collective or state-owned 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 project 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.

(7) Methods of Urban Area Resettlement and Reconstruction of Gaizhou City

Article 20: The compensation mode adopts house property right exchange and cash compensation, in principle, property right exchange is in priority.

Article 21: For the people who chose the currency compensation, the compensation amount will follow the location, purpose, building area, structure, type and environment of the houses demolished, be estimated as the real estate market. For Article affected people who moved forwardly, Articlee encouraged with extra 10% based on the estimated price as premium; there will not be premium for the people moved exceed the time limit.

Article 22: People who are relocated with residential houses will be repaid with the original area, without price difference, which means one demolished, one repaid. APs who moved forward within the time limit will be encouraged with premium: people living on the second or third floor (based on the house license, one license one household), will enjoy the extra 15 m2 favorable areas; others with license will enjoy 10 m2 favorable areas. The price difference for the favorable areas will be calculated as 900 CNY/m2. The areas exceed the favorable areas will be calculated as current commercial house price. There will not be premium for the people moved after the time limit.

The corresponding type will be relocated according to the area of the original houses with license and combined with the favorable area. If the area of the original ones is less than 40 m2, it will be relocated as one room; if the area of the original ones is between 40 m2 and 60 m2 (including 40 m2), it will be relocated as apartment with two rooms; if the area of the original ones is between 60 m2 and 90 m2 (including 60 m2), it will be relocated as two rooms and one hall; if the area of the original ones is 90 m2 or more, it will be relocated as three rooms or separately; and the relocated area for every household will be confirmed according to the design standards within the demolition areas.

The poverty households, who lived in the houses with an area of less than 30 m2 and received the social minimum guarantees, will be relocated according to the smallest type of


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relocation houses, and there will not be price different for them to pay for.

Article 23: For the APs who chose property right exchange (relocation) of the demolition of production houses, the demolition and the APs should calculate the price differently, according to the compensation and the market price of exchanged houses.

Article 24: The demolition of production houses, currency compensation will be delivered in principle, and the special ones will be relocated in a different location.

Article 25: For the houses with license but have been reconstructed as production and operational houses (the business license have been transacted before the area is closed within the effective period, and there is tax registration certificate, the same as follows), the owners will be compensated:

For the houses next to the main streets and roads will be added with extra 300 CNY/m2 within the confirmed production areas; 100 CNY/m2 will be added for the others.

The relocated houses will be implemented as residential houses.

Article 28: For the normal houses (including the ones with temporary construction license) formed before 2004 as history, the evaluated value of which is over 300 CNY, proved by the local street committees, the areas will be calculated as one square meter replacing two; the houses without license (which is truly special residential house), the evaluated value of which is less than 300 CNY, will be compensated with cash. The various types of illegal structures shall not be compensated since the area is closed, and removed forcibly.

Article 29: The attachments and interior and exterior fitments will be evaluated as combined with the relocation price and compensated. The equipment that can be reused will be removed; there will not be subsidies.

Article 31: The demolition will pay the AP for removing subsidies, which will be one-off 150 CNY/HH for the persons chose currency compensation and 300 CNY/HH for the ones chose property right exchange.

Article 32: If the APs handle the transition period by themselves, the demolition should pay them the temporary house renting subsidies. The standard is 150 CNY/month/HH (less than three persons, including three), 30 CNY will be added when one person is added. The delivery of house rent will start at the day of demolition and end at the day of relocation. The demolition will provide the turnover houses, within the transition period, there will not be any temporary house renting subsidies.

If it is the responsibility of the demolition, which led to the transition period exceed 18 months, the demolition should double the subsidies for temporary house renting according to the standard referred in the preceding paragraph.

The affected households who chose the currency compensation, will enjoy three months of house renting subsidies, the standards are as above.

Article 33: The demolition of the producing and operational houses, and the residential houses changed to producing and operational houses, which can lead to stop production, three months and one month of subsidies will be paid for the operators and staffs, based on the average social monthly salary standard of previous year; if the quantity of staffs cannot be confirmed, which will be calculated as one staff per 20 m2.

If which are already stop producing when the demolition notice is issued, there will not be any subsidies.

Article 34: The demolition of the producing and operational houses, and the residential houses changed to producing and operational houses, according to the area of producing and operational houses, warehouse subsidies will be paid for the operators, the standard is 7


60

CNY/m2. Cargo handling charges by 260 CNY/set.

Equipment disassembly costs and replacement costs for the ones cannot be restored will be determined according to the actual or evaluated price.


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Annex III Terms of Reference for 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 APs 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. Including: i) progress of land acquisition; and ii) progress of temporary land occupation.

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

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

APs 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


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assistance in staffing and traffic.

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.

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.

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. Monitoring Indicators 6.1 Baseline Survey

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% of HHs affected by land acquisition). 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:

(viii) Level of education of adults by gender

(ix) Employment status of adults by gender

(x) Land area by type

(xi) Income by source

(xii) Expenditure by type

(xiii) Major assets ownership

(xiv) Cropping pattern (cultivated area of each crop). 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;


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(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. 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

December 2013 Signing contract with independent monitoring agency and preparing TOR of M&E.

January 2014 Preparing work plan of external M&E, including: preparing TOR of survey and form; establishing monitoring system; confirming tasks; and confirming monitoring points.

January 2014 Preparing Baseline Survey.

February 2014 Submitting No. 1 M&E Report.

August 2014 Submitting No. 2 M&E Report.

February 2015 Submitting No. 3 M&E Report.

December 2015 Submitting Evaluation or Completion Report.

8. Monitoring Budget

PMO will hire 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) The budget for each subproject is 0.5% of the basic cost (i.e., compensation budget). A total budget for all subprojects is about CNY 900,000, including CNY 19,900 from this subproject.

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