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Resettlement Due Diligence Report

National Research Center for Resettlement, Hohai University

April 2014

Societe Generale-financed Bengang

Cold-rolled High-strength Steel Improvement

Project


I

Contents

1 Overview of the Project ......................................................................................................... 1

1.1 Background of the Project .................................................................................... 1

1.2 Basic Information on LA, HD and Resettlement ................................................... 1

1.3 Resettlement Due Diligence Investigation ............................................................ 3

1.3.1 Purpose ........................................................................................................ 3

1.3.2 Methods ........................................................................................................ 3

1.3.3 Scope ........................................................................................................... 3

2 Organizational Structure ....................................................................................................... 5

2.1 Implementing Agencies ........................................................................................ 5

2.2 Capacity ............................................................................................................... 6

2.3 Evaluation ............................................................................................................ 6

3 Main Resettlement Impacts of the Project ............................................................................ 7

3.1 Permanent LA ...................................................................................................... 7

3.1.1 Land Approval Procedure ............................................................................. 7

3.1.2 Resettlement Impacts ................................................................................... 7

3.2 HD ........................................................................................................................ 7

3.3 Affected Attachments ........................................................................................... 7

4 Resettlement Policies and Compensation Rates ................................................................. 9

4.1 Domestic Policies on LA, HD and Resettlement .................................................. 9

4.2 LA and HD Compensation Rates ....................................................................... 10

4.2.1 Compensation Rates for Permanently Acquired Collective Land ............... 10

4.2.2 Compensation Rates for Demolished Rural Residential Houses ................ 10

4.2.3 Compensation Rates for Affected Attachments .......................................... 11

4.3 The world Bank Policy on Involuntary Resettlement .......................................... 12

4.3.1 Related Content of the World Bank Policy on Involuntary Resettlement .... 12

4.3.2 Main Differences between the World Bank and Domestic Policies ............. 12

4.4 Evaluation .......................................................................................................... 13

5 Availability and Application of Resettlement Funds .......................................................... 15

5.1 Disbursement of Resettlement Funds ................................................................ 15

5.2 Fund Disbursement and Effectiveness of Use ................................................... 15

5.2.1 Disbursement Procedure ............................................................................ 15

5.2.3 Effectiveness of Use ................................................................................... 16

6 Resettlement and Restoration ............................................................................................. 17

6.1 Permanent LA .................................................................................................... 17

6.2 Demolition of Rural Residential Houses ............................................................. 20

6.3 Restoration of Affected Attachments .................................................................. 21

6.4 Protection of Women’s Rights and Interests ...................................................... 21

6.5 Protection of Rights and Interests of Vulnerable Groups ................................... 22

6.6 Evaluation .......................................................................................................... 23

7 Sampling Survey and Analysis ........................................................................................... 24

7.1 Sampling Survey ................................................................................................... 24

7.2 Interviews ............................................................................................................. 29

7.3 Resettlement Satisfaction Survey ......................................................................... 33


II

8 Information Disclosure and Grievance Redress ................................................................ 35

8.1 Information Disclosure and Consultation .............................................................. 35

8.2 Grievance Redress ............................................................................................... 37

8.3 Evaluation ............................................................................................................. 38

9 Conclusions and Suggestions ............................................................................................ 39

9.1 Conclusions .......................................................................................................... 39

9.2 Outstanding Issues and suggestion ...................................................................... 40

Appendixes ................................................................................................................................. 42

Appendix 1: Reply on Township-level Land Planning of Pingshan District, Benxi City

(LPGL [2012] No.135) ................................................................................................. 42

Appendix 2: Reply on the Adjustment New Plots for Construction Projects in Pingshan

District, Benxi City (First Batch) (LPGLG [2012] No.288) ........................................... 43

Appendix 3: Reply on the Adjustment New Plots for Construction Projects in Pingshan

District, Benxi City (Second Batch) (LPGLG [2012] No.295) ...................................... 44

Appendix 4: Certificate of The Right to Use State-owned Land of the Project ............ 45

Appendix 5: Compensation Rates for Affected Attachments ...................................... 46

Appendix 6: Tables of Sample Survey ........................................................................ 48

Appendix 7:Photos of Due Diligence Investigation ..................................................... 53


III

List of Tables

Table 1-1 List of Components ................................................................................................. 1

Table 1-2 Project Impacts ....................................................................................................... 2

Table 2-1 Staffing of Resettlement Agencies ........................................................................... 6

Table 3-1 Summary of Acquired Collective Land ..................................................................... 8

Table 3-2 Summary of Demolished Rural Residential Houses ................................................ 8

Table 3-3 Summary of Affected Attachments .......................................................................... 8

Table 4-1 Resettlement Policy Framework .............................................................................. 9

Table 4-2 Compensation Rates for Permanently Acquired Collective Land ........................... 10

Table 4-3 Compensation Policies and Rates for Demolished Rural Residential Houses ....... 10

Table 4-4 Comparison of Project Policies .............................................................................. 13

Table 6-1 Insurance Modes of LEFs of Different Age Groups ................................................ 18

Table 6-2 Numbers of LEFs Insured ...................................................................................... 18

Table 6-3 Scope of Training .................................................................................................. 19

Table 6-4 Resettlement Modes Selected by AHs .................................................................. 20

Table 6-5 Summary of Affected Vulnerable Groups .............................................................. 22

Table 7-1 Comparison of Income of AHs before and After LA/HD ......................................... 25

Table 7-2 Comparison of Household Expenditure in 2011 and 2013 ..................................... 27

Table 7-3 Resettlement Satisfaction Survey Form ................................................................. 34

Table 9- 1 Outstanding Resettlement Issues and Proposed Actions ..................................... 41

List of Figures

Figure 1-1 Layout Plan of the Project ...................................................................................... 2

Figure 2-1 Organizational Chart .............................................................................................. 6

Figure 4-1 Appraisal Documents of Affected Attachments ..................................................... 11

Figure 5-1 Voucher and List of Disbursed Compensation Fees ............................................. 15

Figure 5-2 Fund Disbursement Flowchart .............................................................................. 16

Figure 6-1 Photos of Technician Training .............................................................................. 19

Figure 6-2 Photos of Tiexin Garden ....................................................................................... 21

Figure 7-1 Age Distribution of Household Population ............................................................ 24

Figure 7-2 Annual Income and Expenditure of Sample Households ...................................... 25

Figure 7-3 Comparison of average income per capita in 2011 and 2013 ............................... 26

Figure 7-4 Average income per capita in 2011 ...................................................................... 26

Figure 7-5 Average income per capita in 2013 ...................................................................... 26

Figure 7-6 Comparison of average expenditure per capita in 2011 and 2013 ........................ 28

Figure 7-7 Average expenditure per capita in 2011 ............................................................... 28

Figure 7-8 Average expenditure per capita in 2013 ............................................................... 28

Figure 8-1 Project Poster ...................................................................................................... 35

Figure 8-2 Relocation Mobilization Meeting ........................................................................... 35

Figure 8-3 Disclosure of LA Compensation and Resettlement Program ................................ 36

Figure 8-4 LA and HD Lottery ................................................................................................ 36

Figure 8-5 DMS ..................................................................................................................... 36

Figure 8-6 FGD and Interview ............................................................................................... 37

Figure 8-7 Grievance Redress Flowchart .............................................................................. 37

Figure 8-8 Records of Grievances and Appeals .................................................................... 38


IV

Abbreviations

AH - Affected Household

AP - Affected Person

BGSP - Bengang Steel Plates Co., Ltd.

BSDPP - Beigang Steel Deep Processing Park

DMS - Detailed Measurement Survey

FGD - Focus Group Discussion

HD - House Demolition

LA - Land Acquisition

LEF - Land-expropriated Farmer

PRC - People’s Republic of China

Units

Currency unit = Yuan (RMB)

USD1.00 = CNY6

1 hectare = 15 mu


1

1 Overview of the Project

1.1 Background of the Project

Bengang Steel Plates Co., Ltd. (hereinafter, “BGSP”) is a listed company established in March

1997, and a core subsidiary of Benxi Steel Group. BGSP has grown into an ultra-large iron and

steel conglomerate specializing in sintering, coking, iron and steel smelting, steel rolling, power

generation, trade, and scientific research.

BGSP has the widest and highest-strength modern hot-rolled plate plant of China, and can

produce high-quality, high-strength hot-rolled wide steel strips. However, its capacity to produce

cold-rolled plates and strips is insufficient, especially high-quality automotive and household plates.

In addition, BGSP’s cold-rolled products are available in small widths (1850mm or less) and few

varieties (980Mpa or less). In view of this, BGSP plans to implement the Bengang Cold-rolled

High-strength Steel Improvement Project (hereinafter, the “Project”).

The Project is located in Beigang Steel Deep Processing Park (BSDPP) in Pingshan District,

Benxi City, south of the Xihe River, and northwest of the existing water pump factory. In the Project,

a pickling and rolling unit, two continuous annealing units, one cold-rolled high-strength steel tester,

3 recoiling units, 3 semi-automatic packing units, waste acid regeneration station, etc. will be

constructed. After project completion, annual capacity will be 2.2 million tons of high-grade

cold-rolled automobile plates, high-grade household plates, and high-strength and

ultra-high-strength plates. See Table 1-1.

The gross static investment in the Project is 6.51711 billion yuan, and the period of construction

is 2014-2016.

Table 1-1 List of Components

Component Main facilities and equipment

1 Main works

1 pickling rolling unit

3 continuous annealing units

1 cold-rolled high-strength steel tester

3 recoiling units

3 semi-automatic packing units

2 Auxiliary

works

Water supply and drainage facilities

1 recycled water treatment system, 1 wastewater treatment

system, 1 waste acid regeneration station (including

desilicification), and 1 firewater pressurization system

Heating and ventilation facilities 1 refrigeration station

Thermal facilities 1 heating station (with 3 50t/h gas boiler), 1 air compression

station, 1 desalted water station

Gas facilities 2 gas mixing stations, 1 protective gas station

Power supply and distribution facilities 1 66kV main substation, 6 10kV (35kV) switching sub-stations

Office and living facilities 1 office building, 2 workers’ canteens, 1 bathroom

Dust and mist removal facilities Dust and mix removal and purification systems

Integrated pipelines Blast furnace gas, nitrogen and industrial wastewater pipelines

1.2 Basic Information on LA, HD and Resettlement

The Project is located in BSDPP in Fangshen Village, Qiaotou Sub-district, Pingshan District,

with a floor area of 846.35 mu (equivalent to 563,671 m2). The land use right of the Project was

acquired by BGSP from the Pingshan District Government.


2

The Benxi Municipal Government has acquired 975.2 mu of land of BSDPP in 3 times,

including 404.2 mu of land (LPGL [2012] No.135) in April 2012, 285.5 mu of land (LPGLG [2012]

No.288) and 285.5 mu of land (LPGLG [2012] No.295) in December 2012.

The 846.35 mu of land occupied by the Project is part of the above 975.2 mu of land. Since the

Project’s resettlement impacts can hardly be investigated separately, the range of this due diligence

investigation is the above 975.2 mu of land.

Figure 1-1 Layout Plan of the Project

BSDPP is located in the Qiaotou-Beitai area of Pingshan District, Benxi City, with a planned

floor area of 21.67 km2, including a startup area (Zone C) of 2.48 km2. BSDPP is focused on deep

iron and steel processing, equipment manufacture, light industries, logistics services, etc. The

project area is 564,000 m2, accounting for about 1/40 of the floor area of BSDPP.

975.2 mu of collective land has been acquired permanently for the Project, including 392.8 mu

of farmland and 582.4 mu of collective construction land; rural residential houses of 71,724.03 m2

(including main houses of 43,735.36 m2 and utility rooms1 of 22,779.08 m2), and illegal buildings of

5,209.59 m2 have been demolished for the Project. 652 households with 2,054 persons in Groups2

1, 2 and 3 of Fangshen Village, Qiaotou Sub-district, Pingshan District are affected by LA and/or HD,

in which 35 households with 110 persons are affected by LA only, and 617 households with 1,944

persons by both LA and HD. See Table 1-2.

Table 1-2 Project Impacts

Village

Permanently acquired

collective land

Demolished rural residential

houses Remarks

Quantity

(mu)

Affected population Quantity

(m2)

Affected population

HHs Population HHs Population

Fangshen 975.2 652 2054 71724.03 617 1944 35 households with 110 persons

are affected by LA only.

1 Utility rooms are built on both sides of residential houses, used for storage.

2 In Chinese rural areas, an administrative village usually consists of several village groups. For example, Fangshen

Village consists of Fangshen Group 1, Fangshen Group 2 and other groups.

Project plot


3

1.3 Resettlement Due Diligence Investigation

In order to learn the resettlement work and compensation rates of the Project, and protect the

lawful rights and interests of the affected persons (APs), Benxi Steel Group has appointed the

National Research Center for Resettlement at Hohai University to conduct this due diligence

investigation on LA, HD and resettlement.

1.3.1 Purpose

To review the LA, HD and resettlement work of the Project, evaluate if such work complies with

the Land Administration Law of the PRC, and regulations and policies of Liaoning Province and

Benxi City on compensation and resettlement, and the World Bank’s policy on involuntary

resettlement; to learn the LA and HD impacts, and identify the affected population; to examine the

workflows and progress of resettlement, fund management, the production level and standard of

living of the APs, and their satisfaction; and to evaluate resettlement effectiveness and propose

suggestions

1.3.2 Methods

This due diligence was conducted with two methods mainly, one was desk research and the

other fieldwork. In the desk research, documents and materials on the Project and resettlement

were collected and verified. The literatures collected in this due diligence investigation include

project approval documents, relevant agreements, resettlement policies, public participation

records, LA announcements, etc. The fieldwork consisted of the following parts: sampling survey,

FGDs, key informant interviews, and in-depth interviews.

Sampling survey: A sampling plan was designed, where households affected by LA and HD

were sampled randomly. The task force sampled 100 AHs (including 93 valid sample households),

accounting for about 15%3 of all AHs, and conducted a questionnaire survey on them with the

assistance of BGSP and the Qiaotou Sub-district Office, including their production level and

standard of living.

Key informant interview: The task force interviewed 12 key informants, including the project

leader of BGSP, and leaders of the BSDPP Management Committee, district labor and social

security bureau, women’s federation, disabled persons’ federation, etc.

In-depth interview: The task force interviewed 7 villagers of Fangshen Village in depth,

covering their basic information, resettlement, comments and suggestions on the Project, etc.

FGD: Organizational, township-level and village-level FGDs were held with staff of BGSP, the

BSDPP Management Committee, district agencies, and AHs to learn LA and HD compensation and

resettlement, paying particular attention to vulnerable groups and illegal buildings.

1.3.3 Scope

Approval process of construction land

LA and HD policies and implementation

Progress of LA, disbursement of funds, compensation rates, etc.

Progress of HD, disbursement of funds, compensation rates, house reconstruction, etc.

Income restoration and satisfaction of APs

Vulnerable groups

3 Based on experience from The World Bank-financed projects, the sampling rate of AHs is usually within 5-15%.


4

Operating efficiency of resettlement implementing agencies

Public participation and consultation

Grievance redress


5

2 Organizational Structure

2.1 Implementing Agencies

In the Project, the agencies related to LA, HD and other resettlement activities include:

BGSP

BSDPP Management Committee

BSDPP LA and HD Bureau

Qiaotou Sub-district Office

Project LA and HD Headquarters

Tiexin Garden Resettlement Headquarters

Fangshen Village Committee

Other agencies: district land and resources bureau, labor and social security bureau,

disabled persons’ federation, bureau for letters and visits, etc.

BGSP: applying for the construction of the Project

BSDPP Management Committee: leading and coordinating the LA, HD and resettlement of

the Project, developing resettlement policies, and implementing internal supervision and inspection

BSDPP LA and HD Bureau: 1) carrying through the state, provincial and municipal policies

and regulations on LA and HD; 2) drafting resettlement programs; 3) selecting the resettlement site;

and 4) applying for fiscal appropriations

Qiaotou Sub-district Office: 1) participating in the DMS; 2) organizing public participation and

policy publicity; 3) implementing and monitoring resettlement activities; 4) disbursing and managing

LA and HD compensation fees; 5) supervising LA and HD; and 6) coordinating conflicts and issues

Project LA and HD Headquarters: 1) participating in LA and HD mobilization; 2) explaining

policies to AHs; and 3) supervising the DMS and registration

Tiexin Garden Resettlement Headquarters: organizing and leading resettlement, including: 1)

Security Team: maintaining the order of the housing allocation site; 2) Inspection Team: checking

housing allocation formalities and documents, including HD agreement, ID card, household register,

etc.; 3) Housing Allocation Team: allocating housing to eligible AHs, and explaining housing size

and layout; and 4) Settlement Team: settling housing price differences, issuing receipts and

distributing keys

Fangshen Village Committee: 1) participating in the DMS; 2) organizing public participation

and policy publicity; 3) implementing resettlement activities; 4) disbursing and managing funds; 5)

reflecting comments and suggestions to superior authorities; 6) reporting resettlement progress;

and 7) providing assistance to households in difficulty


6

Figure 2-1 Organizational Chart

2.2 Capacity

In order to facilitate resettlement, all resettlement agencies of the Project are provided with

full-time staff, and have established an unobstructed information channel. The resettlement

agencies at different levels are composed of administrative staff and specialized technicians mainly,

and have a workforce of 8-20 each. All staff members have certain professional and management

skills, and considerable local experience in LA. See Table 2-1.

Table 2-1 Staffing of Resettlement Agencies

Agency Staffing Composition

BGSP 12 Workers

BSDPP Management Committee 8 Civil servants

BSDPP LA and HD Bureau 10 Civil servants, workers

Qiaotou Sub-district Office 20 Civil servants, engineers

Project LA and HD Headquarters 16 Civil servants, workers

Tiexin Garden Resettlement Headquarters 10 Civil servants, workers

Fangshen Village Committee 16 Village officials, staff

Total 92 /

2.3 Evaluation

1) The BSDPP Management Committee has a fixed office and an experienced full-time

workforce; 2) The leading group responsible for LA and HD is composed of officials from the

functional departments concerned of the government, and will play a good coordinating role in LA,

HD and resettlement; and 3) The resettlement agencies are provided with competent staff that is

familiar with the policies and regulations on LA, HD and resettlement, and has rich practical

experience. These agencies are able to carry through all policies on LA and HD, and perform their

responsibilities properly.


7

3 Main Resettlement Impacts of the Project

The main types of resettlement impacts of the Project are: 1) permanent acquisition of

collective land; 2) demolition of rural residential houses; and 3) demolition of attachments.

3.1 Permanent LA

3.1.1 Land Approval Procedure

As of April 20, 2014, the 975.2 mu of land used for the Project had been approved in 3 times as

follows:

(1). In April 6, 2012, the Liaoning Provincial Government issued the Reply on Township-level

Land Planning of Pingshan District, Benxi City (LPGL [2012] No.135), approving the acquisition of

404.2 mu of collective land in Fangsheng Village as state-owned land (see Appendix 1).

(2). In December 28, 2012, the Liaoning Provincial Government issued the Reply on the

Adjustment New Plots for Construction Projects in Pingshan District, Benxi City (First Batch)

(LPGLG [2012] No.288), approving the acquisition of 285.5 mu of collective land in Fangsheng

Village as state-owned land (see Appendix 2).

(3). In December 28, 2012, the Liaoning Provincial Government issued the Reply on the

Adjustment New Plots for Construction Projects in Pingshan District, Benxi City (Second Batch)

(LPGLG [2012] No.295), approving the acquisition of 285.5 mu of collective land in Fangsheng

Village as state-owned land (see Appendix 3).

(4). In August 1, 2013, BGSP obtained the certificate of the right to use state-owned land (see

Appendix 4).

3.1.2 Resettlement Impacts

975.2 mu of collective land has been acquired permanently for the Project, including 392.8 mu

of farmland and 582.4 mu of collective construction land, affecting 652 households with 2,054

persons in Groups 1, 2 and 3 of Fangshen Village, Qiaotou Sub-district, Pingshan District. See

Table 3-1.

3.2 HD

Rural residential houses of 71,724.03 m2 (including main houses of 43,735.36 m2 and utility

rooms of 22,779.08 m2), and illegal buildings of 5,209.59 m2 have been demolished for the Project,

affecting 617 households with 1,944 persons in Groups 1, 2 and 3 of Fangshen Village, Qiaotou

Sub-district, Pingshan District. See Table 3-2.

3.3 Affected Attachments

The affected attachments include brick enclosing walls, cement grounds, greenhouses, date

trees, grape trees, peaches, pears, apricots, wells, etc. See Table 3-3.


8

Table 3-1 Summary of Acquired Collective Land

Sub-district Village Group

LA (mu) Affected

Farmland Construction land

Total HHs Population Contracted

land

Private

land Subtotal

Housing

land

Public facility

land Subtotal

Qiaotou Fangshen 1, 2

4 175.3 75.2 250.5 295.5 89.6 385.1 635.6 426 1358

3 87.6 54.7 142.3 101.5 95.8 197.3 339.6 226 696

Total 262.9 129.9 392.8 397 185.4 582.4 975.2 652 2054

Table 3-2 Summary of Demolished Rural Residential Houses

Sub-district Village Group HD (m

2) Affected

Residential houses Utility rooms Illegal buildings Total HHs Population

Qiaotou Fangshen 1, 2 29632.4 15433.71 5209.59 50275.7

3 14102.96 7345.37 0 21448.33 209 659

Total 43735.36 22779.08 5209.59 71724.03 617 1944

Table 3-3 Summary of Affected Attachments

Sub-district Village Group Brick enclosing

walls (m2)

Cement

grounds (m2)

Greenhouses

(m2)

Pigpens

(m2)

Grape

trees Peaches Pears Apricots Wells

Qiaotou Fangshen 1, 2 23609.7 19359.5 45864.68 4290.49 21573 21964 2185 1869 324

3 12525.3 10270.5 28462.3 2276.17 11584 12576 1163 976 157

Total 36135 29630 74326.98 6566.66 33157 34540 3348 2845 481

4 Since farmland and housing land in Groups 1 and 2 of Fangshen Village is mixed, the two groups are combined for analysis here.


9

4 Resettlement Policies and Compensation Rates

4.1 Domestic Policies on LA, HD and Resettlement

In order to implement the LA and resettlement work of the project effectively, protect the lawful

rights and interests of the APs and entities, and facilitate project implementation, the resettlement

policy framework of the Project has been formulated in accordance with the laws and regulations of

the People’s Republic of China (PRC), Liaoning Province, Benxi City and Pingshan District on LA

and HD. See Table 4-1.

Table 4-1 Resettlement Policy Framework

Level Policy document Effective

date

State

Land Administration Law of the PRC 2004-8-28

Regulation on the Dismantlement of Urban Houses of the PRC (Decree No.305 of the State

Council) 2001-11-1

Guiding Opinions on Appraisal of Urban House Dismantlement 2004-1-1

Notice on Issuing the Measures for the Appraisal of Acquired Houses on State-owned Land (HC

[2011] No.77) 2011-6-3

Regulations on the Implementation of the Land Administration Law of the PRC (Decree No.256 of

the State Council) 1998-12-27

Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration

(SC [2004] No.28) 2004-10-21

Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR

[2004] No.238) 2004-11-3

Notice of the State Council on Intensifying Land Control (SC [2006] No.31) 2006-8-31

Notice of the Ministry of Land and Resources on Formulating Uniform Annual Output Value Rates

and Location-based Integrated Land Prices (MLR [2005] No.114) 2005-7-23

Notice of the General Office of the State Council on Forwarding the Guidelines of the Ministry of

Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of

Land-expropriated Farmers (SCGO [2006] No.29)

2006-4-10

Measures on Public Announcement of Land Acquisition (Decree No.10 of the Ministry of Land and

Resources) 2002-1-1

Urgent Notice of the General Office of the Ministry of Land and Resources on Doing Well in Land

Acquisition and House Demolition Management Practically (MLR [2011] No.72) 2011-12-19

Liaoning

Province

Notice of the General Office of the Liaoning Provincial Government on Location-based Land Prices

(LPGO [2010] No.2) 2010-2-1

Opinions of the Liaoning Provincial Government on Strengthening Land Management and Control

(LPG [2007] No.5) 2007-2-8

Notice of the General Office of the Liaoning Provincial Government on Opinions on the Distribution,

Use and Management of Compensation Fees for Acquired Collective Land (LPGO [2008] No.95) 2008-12-19

Interim Measures of Liaoning Province for Social Security for Land-expropriated Farmers (LPGO

[2005] No.81) 2005-10-31

Benxi

City

Compensation and Resettlement Measures for Land Acquisition of Benxi City (Decree No.149 of

the Benxi Municipal Government) 2010-10-1

Interim Measures of Benxi City for Social Security for Land-expropriated Farmers (BMG [2010]

No.21) 2010-10-28

Opinions of the General Office of the Benxi Municipal Government on the Implementation of the

Interim Measures of Benxi City for Social Security (BMG [2010] No.165) 2010-12-10

Notice of the General Office of the Benxi Municipal Government on the LA and HD Compensation

and Resettlement Program for Plot C of BSDPP (BMGO [2010] No.171) 2010-12-31

Pingshan

District

Notice of the Pingshan District Government on Issuing the Compensation and Resettlement

Program for the Bengang Cold-rolled High-strength Steel Improvement Project (PDG [2012] No.1) 2012-1-17


10

4.2 LA and HD Compensation Rates

4.2.1 Compensation Rates for Permanently Acquired Collective Land

The collective land permanently acquired for the Project is compensated for pursuant to the

Notice of the General Office of the Liaoning Provincial Government on Location-based Land Prices

(LPGO [2010] No.2). According to this policy, Fangshen Village, Qiaotou Sub-district, Pingshan

District is a Tier-I area, where both farmland and rural collective construction land shall be

compensated for at 70,000 yuan/mu. See Table 4-2.

Young crops are compensated for pursuant to the Notice of the General Office of the Benxi

Municipal Government on the LA and HD Compensation and Resettlement Program for Plot C of

BSDPP (BMGO [2010] No.171), i.e., 3,000 yuan/mu for vegetable land and 2,000 yuan/mu for

non-irrigated land.

Table 4-2 Compensation Rates for Permanently Acquired Collective Land

District Sub-district Village Area Farmland and construction land

(0,000 yuan/mu) (0,000 yuan/ha)

PIngshan Qiaotou Fangshen Tier-I 7 105

4.2.2 Compensation Rates for Demolished Rural Residential Houses

According to the Notice of the General Office of the Benxi Municipal Government on the LA and

HD Compensation and Resettlement Program for Plot C of BSDPP (BMGO [2010] No.171),

residential houses demolished for the Project shall be compensated for at 1,500 yuan/m2. In

practice, utility rooms are compensated for at 450 yuan/m2 and illegal buildings at 300 yuan/m2.

During the transition period, each AH will receive a transition subsidy of 400-800 yuan/month,

which is sufficient to cover local house rental of about 400 yuan/month.

In order to facilitate HD and relocation, BSDPP LA and HD Bureau offers a series of rewards

and incentives. See Table 4-3.

Table 4-3 Compensation Policies and Rates for Demolished Rural Residential Houses

No. Item Description

1

Compensation

for residential

houses

Main houses 1,500 yuan/m2

Utility rooms 450 yuan/m2

Illegal buildings 300 yuan/m2

2 Transition

subsidy

Property swap5

In case of property swap: 1) 400 yuan per household per month if

building area is 45 m2 or less; 2) 600 yuan per household per month if

building area exceeds 45 m2 but does not exceed 60 m

2; 3) 800 yuan

per household per month if building area exceeds 60 m2; 4) transition

period: 27 months from the date of entering into the agreement

The transition subsidy for the first year is paid at a time, and transition

subsidy will be paid quarterly thereafter.

Cash compensation6

In case of cash compensation, granting a transition subsidy for 3

months at a time

3 Rewards

Signature reward 1,000 yuan per household upon signature on DMS results

Relocation

appointment reward

1,000 yuan per household for relocation appointment

Contracting reward 2,000 yuan per household for entering into the HD compensation

5 See Chapter 6 for the detailed property swap program.

6 See Chapter 6 for the detailed cash compensation program.


11

No. Item Description

agreement within the specified time

Subsidy for small

farm implements

500 yuan per household

Heating subsidy

The prevailing rate of heating charges of Pingshan District is 28

yuan/m2 per annum, in which 10% will be paid by each AH, and the

remainder borne by the district government.

Priority in selection of

resettlement housing

AHs relocated first will enjoy priority in the selection of resettlement

housing.

4 Moving and lost labor subsidy 1,000 yuan per household, paid at a time

4.2.3 Compensation Rates for Affected Attachments

The affected attachments are compensated for pursuant to the Notice of the General Office of

the Benxi Municipal Government on the LA and HD Compensation and Resettlement Program for

Plot C of BSDPP (BMGO [2010] No.171). Attachments are compensated for after confirmation by

the land user, proprietors, and HD implementing agency (see Appendix 5). If any AH has an

objection for the compensation rate, it may apply for appraisal with a qualified appraisal agency to

fix the final compensation rate; if such rate is lower than that specified in Document No.171, the

latter will prevail.

Figure 4-1 Appraisal Documents of Affected Attachments


12

4.3 The World Bank Policy on Involuntary Resettlement

4.3.1 Related Content of the World Bank Policy on Involuntary Resettlement

Operational Policy on Involuntary Resettlement (OP4.12) and Appendixes (January 1,

2002)

The World Bank Procedure on Involuntary Resettlement (BP4.12) and Appendixes

(January 1, 2002)

The main provisions are as follows:

(3). This policy covers direct economic and social impacts that both result from the World

Bank-assisted investment projects, and are caused by: (a) the involuntary taking of land resulting

in: (i) relocation or loss of shelter; (ii) lost of assets or access to assets; or (iii) loss of income

sources or means of livelihood, whether or not the affected persons must move to another location;

or (b) the involuntary restriction of access to legally designated parks and protected areas resulting

in adverse impacts on the livelihoods of the displaced persons.

(10).The implementation of resettlement activities is linked to the implementation of the

investment component of the project to ensure that displacement or restriction of access does not

occur before necessary measures for resettlement are in place. For the involuntary taking of land

(includes anything growing on or permanently affixed to land, such as buildings and crops), these

measures include provision of compensation and of other assistance required for relocation, prior to

displacement, and preparation and provision of resettlement sites with adequate facilities, where

required. In particular, taking of land and related assets may take place only after compensation has

been paid and, where applicable, resettlement sites and moving allowances have been provided to

the displaced persons.

(15). Criteria for Eligibility. Displaced persons may be classified in one of the following three

groups: (a) those who have formal legal rights to land (including customary and traditional rights

recognized under the laws of the country); (b) those who do not have formal legal rights to land at

the time the census begins but have a claim to such land or assets—provided that such claims are

recognized under the laws of the country or become recognized through a process identified in the

resettlement plan; and (c) those who have no recognizable legal right or claim to the land they are

occupying.

(16). Persons covered under para. 15(a) and (b) are provided compensation for the land they

lose, and other assistance in accordance with para. 6. Persons covered under para. 15(c) are

provided resettlement assistance in lieu of compensation for the land they occupy, and other

assistance, as necessary, to achieve the objectives set out in this policy, if they occupy the project

area prior to a cut-off date established by the borrower and acceptable to the the World Bank.

Persons who encroach on the area after the cut-off date are not entitled to compensation or any

other form of resettlement assistance. All persons included in para. 15(a), (b), or (c) are provided

compensation for loss of assets other than land.

4.3.2 Main Differences between the World Bank and Domestic Policies

(1). Compensation and resettlement of vulnerable groups

Difference: the World Bank policies require that special assistance is granted to all

vulnerable groups, especially seriously affected households faced with impoverishment.

Chinese provisions do not require social analysis, and compensation is based only on


13

losses.

The Project: An extra subsidy is granted to the vulnerable AHs; AHs with disability are

assisted in relocation for free; vulnerable AHs having difficulty in motion are resettled on

lower floors.

(2). Consultation and disclosure

Difference: the World Bank policies require APs are fully informed and consulted as soon

as possible. Although there are measures for LA announcement in China, the period of

announcement is usually short, so that APs are often unable to participate effectively.

The Project: The LA and HD Headquarters is established, which has held a village-level

mobilization meeting to give publicity to policies, and organized the AHs choosing property

swap to visit the resettlement housing.

(3). Legal title

Difference: the World Bank policies require all demolished houses, whether lawful or not,

should be compensated for. According to Chinese laws, no compensation should be

provided for the acquisition of illegally owned land and houses.

The Project: Illegal buildings are compensated for at replacement cost.

(4). Resettlement monitoring, evaluation and reporting

Difference: the World Bank requires that internal and external resettlement monitoring be

conducted. However, there is no such requirement in Chinese laws, expect for reservoir

projects.

The Project: Since the AHs choosing property swap have not moved into resettlement

housing, resettlement monitoring and evaluation (M&E7) will be conducted until their

production level and living standard are fully restored.

Table 4-4 Comparison of Project Policies

No. The Project Chinese policies the World Bank policy Project policies

1

Compensation

and

resettlement of

vulnerable

groups

Compensation

based on losses

Granting special assistance

to all vulnerable groups,

especially seriously affected

households faced with

impoverishment

1) Granting an extra subsidy to vulnerable groups;

2) Assisting AHs with disability in relocation;

3) Resettling vulnerable AHs having difficulty in

motion on lower floors;

4) Other measures

2 Consultation

and disclosure

Announcement and

registration

Conducting adequate public

participation and consultation

1) Village-level mobilization meeting and publicity;

2) Door-to-door policy explanation;

3) Field visit of resettlement housing

4) Sound grievance redress mechanism

3 Illegal

buildings

No compensation Compensating for all houses

demolished, lawful or not

Compensating for illegal buildings at replacement

cost

4 Resettlement

M&E

Not required (except

reservoir projects)

Internal and external

monitoring

Conducting resettlement M&E until production

level and living standard are fully restored

4.4 Evaluation

The LA, HD and resettlement work of the Project is based on the Notice of the General Office of

the Liaoning Provincial Government on Location-based Land Prices (LPGO [2010] No.2), and

Notice of the General Office of the Benxi Municipal Government on the LA and HD Compensation

and Resettlement Program for Plot C of BSDPP (BMGO [2010] No.171). These regulations have

been developed by the municipal government in accordance with the Land Administration Law of

7 M&E is to investigate, inspect, supervise and evaluate constinuously the implementation of resettlement activities.


14

the PRC, Rural Land Contracting Law of the PRC, Opinions of the Liaoning Provincial Government

on Strengthening Land Management and Control, Compensation and Resettlement Measures for

Land Acquisition of Benxi City, and based on the practical situation of Benxi City and Pingshan

District.

The domestic policies on LA, HD and resettlement are consistent with the World Bank policy on

involuntary resettlement in terms of compensation and livelihood restoration. However, there are

some differences in the resettlement of vulnerable groups, public participation and consultation,

legal title, and resettlement M&E.

The resettlement policies of the Project aim to minimize negative impacts of LA and HD, and

resettle the APs properly. The specific measures proposed under the Project include: 1) An extra

subsidy is granted to the vulnerable AHs; AHs with disability are assisted in relocation for free;

vulnerable AHs having difficulty in motion are resettled on lower floors; 2) The LA and HD

Headquarters is established, which has held a village-level mobilization meeting to give publicity to

policies, and organized the AHs choosing property swap to visit the resettlement housing; 3) Illegal

buildings are compensated for at replacement cost; and 4) Since the AHs choosing property swap

have not moved into resettlement housing, resettlement M&E will be conducted until their

production level and living standard are fully restored.

In sum, the resettlement policies of the Project comply not only with the laws, regulations and

policies on LA and HD of the PRC, but also with the World Bank’s policy on involuntary resettlement,

and have been accepted by the AHs in practice.


15

5 Availability and Application of Resettlement Funds

5.1 Disbursement of Resettlement Funds

The total amount of LA compensation fees is 68.264 million yuan. As of April 20, 2014, all LA

compensation fees had been paid to as confirmed by their signature.

HD compensation includes cash compensation fees, price difference subsidies, and other

subsidies and rewards, totaling 11.6806 million yuan. As of April 20, 2014, all HD compensation

fees had been paid to the AHs.

The total amount of compensation for the affected attachments is 57.8601 million yuan, As of

April 20, 2014, all compensation fees for the affected attachments had been paid. See Figure 5-1.

Figure 5-1 Voucher and List of Disbursed Compensation Fees8

5.2 Fund Disbursement and Effectiveness of Use

5.2.1 Disbursement Procedure

In order to ensure that compensation fees are paid timely and fully to the APs according to the

compensation policies and rates, a sound disbursement procedure has been established.

Benxi Municipal Investment Development Co. opened the special settlement account in the

Pingshan Sub-branch of China Construction Bank. Then the Pingshan Sub-branch of China

Construction Bank pay LA and HD compensation fees to the bank accounts of the AHs according to

the compensation agreements. See Figure 5-2.

8 Figure 5-1 shows the 47

th and 50

th batch of compensation fees.


16

Figure 5-2 Fund Disbursement Flowchart

5.2.3 Effectiveness of Use

An internal supervision mechanism and a strict financial institution have been established to

ensure the timely disbursement of compensation fees and the successful implementation of

resettlement.

The AHs generally think that the compensation rates are reasonable and satisfactory, and the

resettlement procedures are streamlined. Neither late payment nor deduction occurred during

resettlement.

The disbursement procedure is transparent and effective, and compensation fees have been

paid to the APs fully and timely, thereby ensuring that the APs are able to conduct production and

livelihood restoration activities, and the successful implementation of resettlement.

Benxi Municipal Investment

Development Co.

BSDPP Management Committee

AHs


17

6 Resettlement and Restoration

6.1 Permanent LA

(1). Distribution of LA compensation


HD Compensation and Resettlement Program for Plot C of BSDPP (BMGO [2010] No.171), 80% of

LA compensation fees shall be paid to the AHs, and 20% retained by the affected rural collective

economic organization. However, in practice, all LA compensation fees are paid fully and timely to

the AHs without retention and without land reallocation.

(2). Social security

1) Policies

Land-expropriated farmers (LEFs) eligible under the Interim Measures of Benxi City for Social

Security for Land-expropriated Farmers (BMG [2010] No.21), and Opinions of the General Office of

the Benxi Municipal Government on the Implementation of the Interim Measures of Benxi City for

Social Security (BMG [2010] No.165) may choose social security voluntarily as follows:

A. Endowment insurance: Farmers having attained 16 years and with a land loss rate of

50% or more may cover basic endowment insurance for LEFs voluntarily, or basic endowment

insurance for urban enterprise employees through contribution or as freelancers.

The insurance modes for different age groups are as follows:

a) LEFs having attained 60 years for men or 55 years for women upon LA may get insured in

the following two modes:

LEFs having attained 60 years for men or 55 years for women upon LA shall pay premiums

at 50% of the average pay of the city in the previous year at a time until 60 years. Premiums shall be

reduced by 3% per year for LEFs having attained 60 years (both men and women). LEFs having

attained 75 years will receive the basic pension monthly without contribution. LEFs having attained

60 years for men or 55 years for women receive the basic pension (higher than the MLS standard of

urban residents) monthly from the month following payment.

LEFs already insured may make contribution at 100% of the average pay of the city in the

previous year at a time voluntarily, and receive 150% of the basic pension.

LEFs having attained 60 years for men or 55 years for women upon LA may cover basic

endowment insurance for urban enterprise employees as freelancers by paying premiums at 20%

of 60% of the average pay of in-service employees of the city in the previous year for 15 years at a

time, and receive the basic pension monthly from the month following payment.

b) LEFs under 60 years for men or 55 years for women upon LA may pay premiums under

basic endowment insurance for urban enterprise employees at a time as described above when

attaining 60 years for men or 55 years for women, and receive the basic pension monthly from the

month following payment.

LEFs having attained 45 years but under 60 years for men or having attained 40 years but

under 55 years for women upon LA, if unemployed, may cover basic endowment insurance for

urban enterprise employees as freelancers; or if employed, shall cover basic endowment insurance

for urban enterprise employees with employers. When an LEF attains the pension-receiving age but

the actual period of contribution is less than 15 years, it may make up premiums for 15 years at a



18

LEFs having attained 16 years but under 45 years for men or having attained 16 years but

under 40 years for women upon LA, if unemployed, shall cover basic endowment insurance for

urban enterprise employees as freelancers; or if employed, shall cover basic endowment insurance

for urban enterprise employees with employers. When an LEF attains the pension-receiving age but

the actual period of contribution is less than 15 years, it may make up premiums for 15 years at a


See Table 6-1.

Table 6-1 Insurance Modes of LEFs of Different Age Groups

Age group Mode of contribution Type of insurance Remarks

Men Women

X≥75 X≥75 No contribution Receiving

basic

pension

monthly

Basic endowment

insurance for urban

enterprise employees

/

60≤X<75 55≤X<75

50% of the average

pay of the city in the

previous year at a time

LEFs already insured may make

contribution at 100% of the average

pay of the city in the previous year

at a time voluntarily, and receive

150% of the basic pension.

45≤x<60 40≤X<55 Paying premiums as

described above

Receiving

basic

pension

monthly

Basic endowment

insurance for urban

enterprise employees

Covering basic endowment

insurance for urban enterprise

employees with employers if

employed 16≤X<45 16≤X<40

The district government and BSDPP Management Committee transfer 5-10% of net land

transfer fees to the special account of endowment insurance for LEFs. Upon LA, the district land

and resources bureau makes contribution to the social security fund for LEFs at 50% of the average

pay of the city in the previous year to pay premiums of endowment insurance for LEFs.

B. Medical security: Unemployed LEFs may cover new-type rural cooperative medical

insurance or basic medical insurance for urban residents, or cover basic endowment insurance for

urban enterprise employees as freelancers. Employed LEFs shall cover basic medical insurance for

urban employees with employers.

2) Insurance under the Project

As of April 20, 2014, 77 APs had covered basic endowment insurance for LEFs, accounting for

3.75% of the affected population, including 26 APs aged 75 years or above (12 men and 14 women),

and 51 APs aged below 75 years (18 men and 33 women). 459 APs have covered basic

endowment insurance for urban enterprise employees, accounting for 22.35% of the affected

population, including 197 men and 262 women. See Table 6-2.

Table 6-2 Numbers of LEFs Insured

Type Insured Percent to affected

population (%) Men Women

Basic endowment insurance for LEFs 77 3.75 30 47

Basic endowment insurance for urban

enterprise employees 459 22.35 197 262

Total 536 26.1 227 309

According to the above policy, an AP having attained 60 years for men or 55 years for women,

covering basic endowment insurance for urban enterprise employees as a freelancer, and paying

premiums for 15 years at a time will pay 70,155 yuan at a time. An AP covering basic endowment

insurance for LEFs will receive a pension of 350 yuan per month, and one covering basic


19

endowment insurance for urban enterprise employees will receive a pension of 940.33 yuan per

month.

(3). Employment

In order to improve the ability of the APs to get employed or reemployed, the district labor and

social security bureau, BSDPP Management Committee, Qiaotou Sub-district and BGSP have

organized various activities, including:

Spring Breeze Action: Since 2012, the district labor and social security bureau would

implement the Spring Breeze Action for policy publicity and employment promotion every spring,

usually with a period of two months. BSDPP is the main area covered by the Spring Breeze Action.

The action is implemented through the distribution of publicity materials and guides on employment

services, and information of employment service agencies, and collection of employment

information from enterprises. During the action, information on over 1,000 jobs was collected, 450

jobs were offered by 32 enterprises, and 70 persons reached intent of employment on site.

Technician training: APs under 22 years may receive skills training on iron and steel

processing offered by Bengang Technical College voluntarily. Trainees are exempt from tuition in

Year 1, and half exempt in Years 2 and 3. Trainees passing examination will receive a certificate.

Over 20 persons have attended technician training. See Figure 6-1.

Figure 6-1 Photos of Technician Training

Short-term skills training: There are over 170 enterprises in BSDPP, offering a large number

of job opportunities for local residents, especially APs. Taking this opportunity, the BSDPP

Management Committee and Qiaotou Sub-district Office has conducted short-term skills training,

which is freely available to APs aged 22 years or above, covering security guard, construction, iron

and steel processing, repair, clothing, cleaning, maternity matron, business startup, etc. 586

men-times have been trained in total. See Table 6-3.

Table 6-3 Scope of Training

Scope of training Sessions Trainees (man-time) LEFs trained (man-time) Percent

Security guard 2 150 28 18.67%

Construction 1 78 43 55.13%

Iron and steel processing 5 953 432 45.33%

Electric repair 2 98 21 21.43%

Clothing 1 35 4 11.43%

Cleaning 2 121 32 26.45%

Maternity matron 1 37 9 24.32%

Business startup 2 64 17 26.56%

Total 16 1536 586 38.15%


20

6.2 Demolition of Rural Residential Houses


HD Compensation and Resettlement Program for Plot C of BSDPP (BMGO [2010] No.171), the

households affected by the demolition of rural residential houses may choose property swap or

cash compensation voluntarily.

(1). Property swap

The housing sizes available under property swap include 45 m2 (one bedroom), 60 m2 (two

bedrooms) and 80 m2 (3 bedrooms).

For any difference between the building areas of the demolished and resettlement houses,

price is settled at 900 yuan/m2 for resettlement housing of 45 m2, 1,100 yuan/m2 for resettlement

housing of 60/80 m2, and 1,500 yuan/m2 if the building area of the resettlement house is smaller

than that of the demolished house.

(2). Cash compensation

Demolished houses are compensated for at 1,500 yuan/m2 of building area. If any AH has an

objection for the compensation rate, it may apply for appraisal with a qualified appraisal agency to

fix the final compensation rate; if such rate is lower than 1,500 yuan/m2, 1,500 yuan/m2 will apply. If

the building area of a demolished house is less than 45 m2, the area difference is compensated for

at = 1,500 yuan/m2 X (45 m2 – building area of demolished house) X 40%.

Among the 617 households affected by HD, 611 (accounting for 99.03%) have chosen property

swap, and 6 (accounting for 0.97%) have chosen cash compensation. See Table 6-4.

Table 6-4 Resettlement Modes Selected by AHs

Sub-

district Village Group AHs

Resettlement mode

Cash compensation Property swap

AHs Percent (%) AHs Percent (%)

Qiaotou Fangshen 1, 2 406 4 0.65% 402 65.15%

3 211 2 0.32% 209 33.87%

Total 617 6 0.97% 611 99.03%

The AHs choosing property swap will be resettled in Tiexin Garden in Qiaotou Sub-district,

about 0.5km away from Fangshen Village, which features advantaged location, long history,

convenient traffic and sound infrastructure. It broke ground in 2011, and has a floor area of 56,000

m2 and gross investment of 105 million yuan. It consists of 16 resettlement buildings, and can

accommodate 946 households. To date, 12 resettlement buildings have been completed, while the

other 4 under construction, and the infrastructure is being improved. It is expected that all AHs will

be resettled by October 1, 2014. See Figure 6-2.


21

Figure 6-2 Photos of Tiexin Garden

The resettlement program for HD is as follows:

House selection method: An AH selects a house on site with the ID card, household register,

HD compensation agreement, appointment number, and other relevant certificates and materials.

Upon selection, the AH signs on the confirmation letter, when transition subsidy is no longer paid.

Settlement of price difference: An AH settles the price difference, goes through the

resettlement formalities, and receive the key within 5 days.

6.3 Restoration of Affected Attachments


trees, grape trees, peaches, pears, apricots, wells, etc. These attachments will be compensated for

in a unified manner without reconstruction.

6.4 Protection of Women’s Rights and Interests

The municipal women’s federation has organized various activities to improve women’s

capacity, and protect women’s rights and interests during resettlement:

(1). Spring Breeze Action (for women)

The Spring Breeze Action offers jobs to female job applicants, including construction, handicraft

and service jobs in many cities and provinces. In 2013, a job fair under Spring Breeze Action was

conducted in Qiaotou Sub-district, at which 30 labor contracts were signed, including 6 affected

women.

(2). Learning and Contest

The Learning and Contest campaign includes knowledge and skills learning, and performance

and contribution contest for rural women, and aims to train knowledgeable, skilled new-type female

farmers, and promote the reemployment of female LEFs. In addition, women participating in the

campaign may apply for small-amount loans with an upper limit of 30,000 yuan. In 2013, the district

women’s federation held two training sessions, training 100 men-times in total, including 21

men-times of affected women.

(3). Employment

Women able and willing to get employed in poor households are registered at the sub-district

office, and offered skills training and employment services. The Qiaotou Sub-district Office has

offered jobs to 15 affected women.


22

(4). Information disclosure and sharing

During resettlement, the affected women have received relevant information, and have the

equal right of participation and decision-making in the development of resettlement programs.

About 30% of participants in information disclosure are women.

6.5 Protection of Rights and Interests of Vulnerable Groups

For the purpose of the Project, vulnerable groups include disabled persons, five-guarantee

households9, Minimum Living Standard（MLS） households, women-headed households and

orphans. 55 households with 107 persons affected by the Project fall into vulnerable groups,

accounting for 5.21% of the affected population. See Table 6-5.

Table 6-5 Summary of Affected Vulnerable Groups

No. Type of

vulnerability AHs Population

Percent to gross

population Remarks

1 Disability 33 37 1.80% Some disabled persons have

the ability to do simple labor.

2 MLS 17 59 2.87%

3 Five-guarantee 1 1 0.05%

4 Woman-headed 3 7 0.34%

5 Orphan 1 3 0.15%

Total 55 107 5.21%

The district government, BSDPP Management Committee, Qiaotou Sub-district Office and

Fangshen Village Committee attached great importance to the protection of the rights and interests

of vulnerable groups.

37 APs are disabled, accounting for 1.8% of the affected population. Each AH with disability

can receive a subsidy of 10,000-20,000 yuan and assistance in relocation.

In addition, the disabled APs are also entitled to the following preferential measures:

(1). Individual business support: 13 disabled APs engaged in individual businesses have

received financial or other support;

(2). Aiding apparatus: Aiding apparatus has been distributed to 5 disabled APs, including

hearing aids, wheelchairs and staffs to further improve their living conditions;

(3). Accident insurance: 10 physically disabled APs have covered accident insurance for free to

protect their personal safety during resettlement;

(4). Placement to public welfare jobs: 4 Class-3/4 disabled APs10 have been placed to public

welfare jobs; they work for half a day per day and can earn 575 yuan per month;

(5). Special education: One disabled AP has been sent to pursue special education to increase

his income.

(6). Allocation of houses on lower floors: 20 AHs with disability have chosen houses on Floor 1

or 2 for greater convenience.

9Five-guarantee households refer to old, disabled and underage people without the ability to work, without

income source and without legal supporter. 10

Disability is divided into 4 classes, in which Class 1 is extremely severe, Class 2 severe, Class 3 moderate and Class 4 slight.


23

Rural residents in Benxi City with annual income of less than 2,760 yuan can be included in the

Minimum Living Standard（MLS）system. Among the AHs, there are 17 Minimum Living Standard

（MLS）households with 59 persons, accounting for 2.87% of the affected population. The Minimum

Living Standard（MLS） households are entitled to a preferential price in the settlement of price

difference.

One five-guarantee household with one person is affected by the Project, namely Sun XX, 76

years, in Group 3 of Fangshen Village, who has been transferred to Qiaotou Welfare House for

centralized support at 4,890 yuan year, which is borne by the civil affairs bureau. After transfer, all

land of Sun XX has been withdrawn by the village collective for reallocation, and his livelihood is not

affected.

6.6 Evaluation

The related LA and HD agencies have taken livelihood restoration measures suited to local

policies and practices.

The resettlement modes for LA include cash compensation, endowment insurance for LEFs,

employment training, etc. The AHs have received full compensation; eligible APs have been

included in the endowment insurance system for LEFs. The APs have improved their ability to get

employed or reemployed through the Spring Breeze Action, technician training, short-term skills

training, etc.

The resettlement modes for HD include cash compensation and property swap. The

resettlement area is Tiexin Garden in Qiaotou Sub-district with convenient traffic and sound

infrastructure. It is expected that all AHs will be resettled by October 1, 2014. The AHs are during

the transition period and can receive a transition subsidy. Although some resettlement housings are

still under construction and the APs are during transition, they are satisfied, mentally stable and

confident in future lives.


trees, grape trees, peaches, pears, apricots, wells, etc. These attachments will be compensated for

in a unified manner without reconstruction. Al compensation fees have been paid.

The affected women have improved their ability to get employed and family status through the

Spring Breeze Action, Learning and Contest, employment, etc.

The vulnerable groups affected by the Project include disabled persons, five-guarantee

households, MLS households, women-headed households and orphans. The assistance measures

for vulnerable groups include subsidies, resettlement housing selection, placement to public welfare

jobs , etc., protecting their rights and interests adequately.


24

7 Sampling Survey and Analysis

7.1 Sampling Survey

During April 23-28, 2014, the task force conducted a sampling survey on 100 AHs

in Fangshen Village, Qiaotou Sub-district, Pingshan District, with 93 valid copies of

the questionnaire recovered, covering population, land resources, housing conditions,

income, satisfaction, etc.

(1). Population

This Survey refers to 93 sample households. People surveyed have 70 males,

accounting for 75.27%, and 23 females, accounting for 24.73%. Their total population

was 327 before LA and HD (2011) and 337 after LA and HD (2013). In 2013, the

sample households had 205 laborers, accounting for 60.83%, including 81 female

laborers, accounting for 24.04%, 39 underage persons, accounting for 11.57%, and

41 old persons, accounting for 12.17%. See Appendix 6(Table 1). Age Distribution of

Household Population see Figure7-1.

Figure 7-1 Age Distribution of Household Population

(2). Land resources

Fangshen Village is short of land resources, and agriculture is not a main income

source of local residents. The 93 sample households had 147.56 mu of cultivated land

(0.44 mu per capita) before LA. The main crops are corn and vegetables, including

pepper, potato and tomato. Due to agricultural costs are high and profits are low,

farmers are generally unwilling to do farm work.

(3). Housing conditions

All sample households choose property swap. The 93 sample households have a

total building area of 12,436 m2 before HD, including residential houses of 8,926.77

m2 (71.78%), utility rooms of 2,192.42 m2 (17.63%) and illegal buildings of 1,316.81

m2 (0.59%). Their houses are in masonry timber structure mainly. Since relocation will

be completed by the end of October 2014, M&E should be conducted by the end of

March 2015 to compare housing conditions before and after relocation.


25

(4). Variation of income and expenditure

After LA and HD (2013), the per capita annual income of the sample households

was 14637.63 yuan, 4621.78 yuan more than that before LA and HD (2011). However,

since resettlement has not been fully completed, still 4 households have not restored

their income, accounting for 4.3% of all sample households. See Appendix 6(Table

2). Annual Income and Expenditure of Sample Households see Figure 7-2.

Figure 7-2 Annual Income and Expenditure of Sample Households

1) Variation of household income

Before LA and HD (2011), the average annual household income of the sample

households was 10014 yuan, including agricultural income of 630 yuan, accounting

for 6.29%; stockbreeding income of 80 yuan, accounting for 0.8%; wage income of 45

yuan, accounting for 0.45%; employment income of 9010 yuan, accounting for

89.97% and other nonagricultural income of 249 yuan, accounting for 2.49%.

After LA and HD (2013) the average annual household income of the sample

households was 14459 yuan, in which agricultural income and stockbreeding income

all 0 yuan; wage income of 59 yuan, accounting for 0.38%; employment income of

14000 yuan, accounting for 96.83% and other nonagricultural income of 404 yuan,

accounting for 2.79%. See Table 7-1.

Table 7-1 Comparison of Income of AHs before and After LA/HD

Items

Before LA（2011） After LA（2013）

Per

Household

(yuan)

Per

Capita

(yuan)

Proportion

(%)

Per

Household

(yuan)

Per

Capita

(yuan)

Proportion

(%)

Agricultural Income 1400 630 6.29% 0 0 0.00%

Stockbreeding Income 200 80 0.80% 0 0 0.00%

Wage Income 121 45 0.45% 135 55 0.38%

Employment Income 25000 9010 89.97% 40000 14000 96.83%

Other Income 600 249 2.49% 1000 404 2.79%

Total 27321 10014 100.00% 41135 14459 100.00%


26

Figure 7-3 Comparison of average income per capita in 2011 and 2013

Figure 7-4 Average income per capita in 2011

Figure 7-5 Average income per capita in 2013

2) Variation of household expenditure

In 2011, among the sample households, food expenses accounted for 39.59% of

gross expenditure, clothing expenses for 10.40%, daily necessity expenses for

12.61%, recreational expenses for 1.04%, medical expenses 7.27%, fuel (including

heating) expenses for 14.76%, water and electricity expenses for 4.16%, educational


27

expenses for 2.08%, furniture and appliance expenses for 1.04%, traffic and

communication expenses for 3.12%, and other expenses for 4.12%.

In 2013, among the sample households, food expenses accounted for 38.71% of

gross expenditure, clothing expenses for 12.24%, daily necessity expenses for

13.88%, recreational expenses for 1.22%, medical expenses 7.46%, fuel (including

heating) expenses for 9.79%, water and electricity expenses for 6.12%, educational

expenses for 3.67%, furniture and appliance expenses for 1.30%, traffic and

communication expenses for 3.17%, and other expenses for 2.45%. See Table 7-2.

Table 7-2 Comparison of Household Expenditure in 2011 and 2013

Item

Before displacement(2011) After displacement(2013)

Per

Househol

d

(yuan)

Per

Capita

(yuan)

Proport

ion

(%)

Per

Household

(yuan)

Per

Capita

(yuan)

Proport

ion

(%)

Food 6172.75 1703.46 39.35% 6985.02 1927.62 38.71%

Clothing 1631.41 450.21 10.40% 2207.90 609.30 12.24%

Articles for Daily

Use 1978.84 546.09 12.61% 2503.95 691.00 13.88%

Medical 1140.99 314.87 7.27% 1345.53 371.32 7.46%

Construction

Material 163.14 45.02 1.04% 220.79 60.93 1.22%

Fuel (including

heating) 2315.46 638.98 14.76% 1766.32 487.44 9.79%

Water and

Electricity 652.56 180.08 4.16% 1103.95 304.65 6.12%

Educational 326.28 90.04 2.08% 662.37 182.79 3.67%

Furniture and

Appliance 163.14 45.02 1.04% 234.79 64.79 1.30%

Traffic and

Communication 489.42 135.06 3.12% 571.79 157.79 3.17%

Other 652.56 180.08 4.16% 441.58 121.86 2.45%

Total 15686.56 4328.93 100.00

% 18043.97 4979.49

100.00

%


28

Figure 7-6 Comparison of average expenditure per capita in 2011 and 2013

Figure 7-7 Average expenditure per capita in 2011

Figure 7-8 Average expenditure per capita in 2013


29

7.2 Interviews

(1). Key informant interview 1

Date: April 25, 2014

Venue: Qiaotou Sub-district Office

Interviewee: Director Zhang

Sub-district overview:

Qiaotou Sub-district has 6,717 households with 19,450 persons, a land area of 71.6 km2, and

a cultivated area of over 14,000 mu, governing 7 villages and one community. The main crops are

corn, cabbage, potato and cucumber. There are 174 enterprises in the sub-district, mainly rough

processing enterprises (over 80% dealing with iron and steel). The per capita net income of

Fangshen Village is 10,700 yuan.

Outside employment:

About 3,000 persons work outside, mostly men, mostly working in Shenyang City. Men deal

with construction mainly, and women do odd jobs at factories mainly.



Venue: presidential office of the Pingshan District Disabled Persons’ Federation

Interviewee: Chairman Wang (female)

Affected disabled persons:

The Project affects over 30 households with disability. Disability is divided into 4 classes. All

disabled APs have certificates of disability.

Preferential policy for disabled APs:

1. Placement to public welfare jobs: Disabled APs have been placed to public welfare jobs; they

work for half a day per day and can earn 575 yuan per month;

2. Aiding apparatus: including hearing aids, wheelchairs and staffs

3. Accident insurance: Physically disabled APs cover accident insurance for free to protect their

personal safety during resettlement;

4. Individual business support: Disabled APs engaged in individual businesses receive financial

or other support;

5. Each AH with disability is granted a subsidy of 10,000 yuan, and their members are employed

by Benxi Steel Group where possible.

6. Disabled persons aged 55-59 years may cover endowment insurance at 662 yuan per capita

per annum.


30


(4). In-depth interview 1


Venue: BSDPP Management Committee

Interviewee: Director Wang

LA:

All acquired land is collective land, and no temporary land occupation is involved.

Resettlement:

1. The resettlement housing and infrastructure are under construction.

2. The AHs have been relocated for 16 months and mostly live in rented houses, receiving a

subsidy of 800 or 400 yuan per month per household.

3. All AHs will move into the resettlement area by October 1. The resettlement housing may

be sold or leased.

Preferential policy:

12 preferential measures have been developed for APs, including:

1. Any AH supporting the DMS will receive a reward of 1,000 yuan;

2. Any AH supporting relocation will receive a reward of 2,000 yuan;

3. APs having attained 55 years for men or 50 years for women will be entitled to

endowment insurance for urban residents.


Venue: Fangshen Village Committee

Interviewee: Mr. Lin (villager of Group 3 of Fangshen Village, affected by LA and HD)

Family background:

53 years, 2-member family (including his 51-year-old wife), both daughters married

In 2013, net household income was 30,000 yuan, including agricultural income of 8,000 yuan

and employment income of 22,000 yuan; household expenditure was about 10,000 yuan,

including living expenses of 8,000 yuan, entertaining expenses of 1,000 yuan, medical expenses

of 200 yuan and other expenses of 800 yuan.

The family has 3.7 mu of cultivated land, which has been fully acquired. It has a house of 120

m2, in masonry concrete structure, which has been fully demolished.

LA/HD:

The demolished house is subject to property swap, and the resettlement house is 80 m2.

Over 200,000 yuan has been received in compensation, which will be partly used for the

decoration of the resettlement house, and partly saved.

After LA, he plans to work outside to earn a living.

During LA and HD, 3 training courses were conducted in the village.


31





Interviewee: Mr. Zhang (villager of Group 1 of Fangshen Village, affected by LA and HD)

Family background:

41 years, 3-member family

The family formerly had 4 mu of land, including 1 mu of cultivated land, used to grow corn,

and 3 mu of vegetable greenhouses, used to grow potato, pepper and tomato.

In 2012, the family’s income was 40,000-50,000 yuan, from agriculture and employment

mainly, which was medium in the village. Employment income was from odd construction jobs,

with a daily pay of 200-300 yuan.

LA/HD:

The family has received project information from other villagers.

The family former had a house of 84 m2 in masonry concrete structure, and has chosen cash

compensation. Since his child is studying in town, he plans to buy a house in town. Compensation

fees are used for house purchase, daily expenditure and education mainly.

After LA, he plans to work in town to earn a living.



Interviewee: Mr. He (villager of Group 2 of Fangshen Village, affected by LA and HD)

Family background:

27 years, 3-member family, electrician

In 2012, the family’s income was 40,000 yuan, which was medium in the village.

The family formerly had 1 mu of cultivated land, used to grow corn mainly. Its former house

was 110 m2, in masonry concrete structure.

LA/HD:

The family has received project information by means of village publicity, newspaper and TV.

The family has obtained a resettlement house of 120 m2 through property swap, and paid for

the excess size.

Compensation fees are used for daily expenses and savings.


32





Interviewee: Mr. Yang (villager of Group 3 of Fangshen Village, affected by LA and HD)

Family background:

33 years, 3-member family

The family had 0.4 mu of cultivated land and 1.4 mu of fishpond, all acquired.

In 2012, the family’s income was 30,000 yuan, mostly from the fishpond (selling fish and

agritainment). The family also runs a small supermarket.

The family formerly had a house of 100 m2, in masonry concrete structure.

LA/HD:

The family has received project information by means of newspaper and TV.

The resettlement house is 120 m2. He plans to run a store on Floor 1 and live on Floor 2.



Interviewee: Ms Ding (villager of Group 2 of Fangshen Village, affected by LA and HD)

Family background:

59 years, Han, 5-member family

The family formerly had 1.5 mu of cultivated land, used to grow corn, with annual income of

1,200 yuan; the family also raised 300 chickens.

The family formerly had a house of 90 m2, in masonry timber structure.

LA/HD:

The family has received project information by means of newspaper and TV.

The family was relocated voluntarily, and is satisfied with resettlement and compensation.

The family is satisfied with the DMS, and LA and HD compensation policies.


33


7.3 Resettlement Satisfaction Survey

In April 2014, the task force conducted a questionnaire on 93 APs to learn satisfaction with

compensation and resettlement. See Table 7-4.

67.74% of the respondents received relevant information through village congresses and

officials; 80.65% were satisfied with DMS results; 82.8% were aware of the LA and HD policies;

67.74% were highly satisfied and 22.58% satisfied with the LA and HD policies; only 4 respondents

were dissatisfied. They are dissatisfied because they think the LA compensation rate of 70,000

yuan/mu is relatively low and cannot fully cover their losses, and expect young members in their

households to get employed under the Project. These issues were reported to the Pingshan District

Bureau for Letters and Visits, which explained the relevant policies carefully and gave satisfactory

replies.

88.17% of the respondents expressed their personal opinions and ideas through village officials;

76.34% are satisfied with their current lives after relocation; 80.65% think their housing conditions

have improved after relocation; 70.97% think there are more job opportunities after relocation;

74.19% think their income has increased after relocation; 92.47% think the infrastructure has

improved after relocation. See Table 7-3.



Interviewee: Ms Sun (villager of Group 2 of Fangshen Village, affected by LA and HD)

Family background:

32 years, Han, 5-member family (including her parents)

Currently, the family’s monthly income is 4,000 yuan.

The family formerly had 2.07 mu of cultivated land, used to grow corn and cabbage for

self-consumption mainly.

The family’s land was acquired and its house demolished one year ago, and she is now

working outside with her husband.

LA/HD:

The family has chosen property swap, but she does not know when compensation was

received and how compensation was used.

I have lived in the rented house in Pingshan District for over a year, and expect the

reallocation of land.


34

Table 7-3 Resettlement Satisfaction Survey Form

No. Question Options

Result analysis

Respo

ndents

① ② ③ ④ ⑤ Subtotal

N Percent

(%) N

Percent

(%) N

Percent

(%) N

Percent

(%) N

Percent

(%) N

Percen

t (%)

1

By what means did you

first know about LA and

HD?

①Government leaflet or announcement

②Newspaper, TV and other mass media

③Discussion of nearby residents

④Meeting convened by village officials or

informal channel ⑤DMS

93

6 6.45 3 3.23 21 22.58 63 67.74 0 0 93 100

2

Are you satisfied with

the DMS results?

①Very satisfied ②Somewhat satisfied

③Neither, nor ④Dissatisfied ⑤Very

dissatisfied

75 80.65 15 16.13 3 3.23 0 0 0 0 93 100

3

Are you aware of the

compensation policies

for LA and HD?

①Yes ②Somewhat ③No

14 15.05 77 82.8 2 2.15 / / / / 93 100

4


the compensation

policies for LA and HD?



dissatisfied 63 67.74 21 22.58 5 5.38 4 4.3 0 0 93 100

5


the implementation of

these policies?



dissatisfied

53 56.99 31 33.33 6 6.45 3 3.23 0 0 93 100

6

During resettlement, by

what means will you

express your personal

opinions and ideas?

①Don’t know ②Village officials directly or

indirectly ③Government above the

village level directly or indirectly ④Mass

media ⑤Project owner

4 4.30 82 88.17 5 5.38 0 0 2 2.15 93 100

7


your present life?



dissatisfied

71 76.34 16 17.20 6 6.45 0 0 0 0.00 93 100

8 Housing conditions after

relocation

①Better ②Almost the same ③Worse 75 80.65 18 19.35 0 0 / / / / 93 100

9 Job opportunities after

relocation


10 Income after relocation ①Better ②Almost the same ③Worse

69 74.19 24 25.81 0 0 / / / / 93 100

11 Infrastructure after

relocation



35

8 Information Disclosure and Grievance Redress

8.1 Information Disclosure and Consultation

Information disclosure and public participation is a perquisite to the realization of the project objectives. At all stages of the Project, diversified public participation activities have been conducted to collect comments, and disclose resettlement information.

(1). In February 2012, the Pingshan District Government, and BSDPP LA and HD Bureau

disclosed project information by means of poster and bulletin board in the project area.

Figure 8-1 Project Poster

(2). Before LA and HD, the Pingshan District Government, BSDPP Management Committee,

Qiaotou Sub-district Office and Fangshen Village Committee held many FGDs to collect comments

on compensation rates, resettlement programs, etc.

Figure 8-2 Relocation Mobilization Meeting

(3). In March 2012, the BSDPP LA and HD Bureau organized some APs to visit the

resettlement site, who expressed their needs and suggestions.

(4). In April 2012, the BSDPP LA and HD Bureau issued the LA announcement in Fangshen

Village.

(5). In April 2012, the LA and HD Headquarters granted gifts to villagers who attended the

publicity meeting and responded actively, such as induction cookers and quilts.


36

Figure 8-3 Disclosure of LA Compensation and Resettlement Program

Figure 8-4 LA and HD Lottery

(6). In April 2012, The related LA and HD agencies conducted a DMS on affected land, houses

and attachments.

Figure 8-5 DMS

(7). In April 2012, the task force held FGDs and in-depth interviews to learn the disbursement

of LA compensation fees, livelihood restoration, satisfaction with the resettlement area, etc.


37

Figure 8-6 FGD and Interview

8.2 Grievance Redress

(1). Grievance redress mechanism

1) Project agencies: The APs may file appeals with the project agencies directly, and will

receive timely feedback.

2) Municipal hotline: The APs may file appeals through the municipal hotline of 0414-4899502,

and will receive a reply within 2-3 working days.

3) District head’s mailbox: The APs may file appeals with the direct head by mail or e-mail,

and will receive a reply by telephone, e-mail or mail.

(2). Grievance redress procedure

A sound grievance redress mechanism has been established as follows:

Stage 1: An AP may file an appeal with the Project LA and HD Headquarters, which should

address the appeal on spot;

Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with

the Qiaotou Sub-district Office, which should address the appeal within 15 days;

Stage 3: If the AP is dissatisfied with the disposition of Stage 2, he/she may file an appeal with

the BSDPP Management Committee;

Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may file an appeal

with the Pingshan District Bureau for Letters and Visits (Tel: 0414-2883136), which should give a

reply within 30 working days.

Stage 5: If the AP is still dissatisfied with the disposition of Stage 4, he/she may bring a suit in a

civil court pursuant to the Civil Procedure Law.

Figure 8-7 Grievance Redress Flowchart


38

(3). Appeal case

On April 10, 2014, 30 APs in Fangshen Village went to the Pingshan District Bureau for Letters

and Visits to file an appeal on LA resettlement and compensation. The case has been closed, and

the appellants are satisfied with the disposition.

Time: April 10, 2014; Venue: Pingshan District Bureau for Letters and Visits

Appellants: over 30 villagers of Fangshen Village

Issues: 1) The subsidy of 30 yuan for endowment insurance is not paid timely; 2) The

compensation rate of 70,000 yuan/mu is relatively low; 3) Jobs should be provided to young

members in their households.

Processing: The head of the Qiaotou Sub-district Office received the appellants, led

representatives to the provincial department of land and resources for policy consultation and

explanation, and urged that the endowment insurance subsidy should be paid fully.

Disposition: The appellants got a deep understanding of the LA compensation policy and accepted

resettlement. The endowment insurance subsidy was paid fully.

Figure 8-8 Records of Grievances and Appeals

8.3 Evaluation

During resettlement, diversified public participation and information disclosure activities were

conducted, enabling the AHs to have a comprehensive understanding of project information, and

the LA and HD policies.

The grievance redress mechanism of the Project is sound, and the AHs can express their

opinions and suggestions in many ways. The Project LA and HD Headquarters has been

established specially so that the APs can address their appeals timely and easily.


39

9 Conclusions and Suggestions

9.1 Conclusions

(1). Resettlement impacts

The 846.35 mu of land occupied by the Project is part of the above 975.2 mu of land. Since the

Project’s resettlement impacts can hardly be investigated separately, the range of this due diligence

investigation is the above 975.2 mu of land, including 392.8 mu of farmland and 582.4 mu of

collective construction land. Rural residential houses of 71,724.03 m2 (including main houses of

43,735.36 m2 and utility rooms of 22,779.08 m2), and illegal buildings of 5,209.59 m2 have been

demolished for the Project, affecting 652 households with 2,054 persons in Groups 1, 2 and 3 of

Fangshen Village, Qiaotou Sub-district, Pingshan District, in which 35 households with 110 persons

are affected by LA only, and 617 households with 1,944 persons by both LA and HD.

(2). Resettlement agencies

The resettlement implementing agencies are well organized, and their members have rich

working experience. These agencies have organized a number of municipal construction projects

that involve LA, HD and resettlement, and gained rich experience in LA, HD and resettlement. Their

members are from different government agencies, and can play a good organizing and coordinating

role in LA, HD and resettlement. They have a regular workforce of 8-20, fixed offices and office

equipment, and the information communication channel is unobstructed. The staff is well equipped

and trained, and proficient in practices, laws, regulations and policies on LA and HD, and has rich

experience in LA, HD and labor resettlement. The staff is able to carry through the policies on LA

and HD, and perform their duties and roles. Therefore, the Project’s resettlement work has been

efficiently organized.

(3). LA and resettlement policies

The resettlement policies of the Project are based strictly on the applicable policies of the state,

Liaoning Province, Benxi City and Pingshan District. Preferential policies have been developed for

different APs. Preferential policies have been developed for different APs, consistent with the World

Bank’s policy on involuntary resettlement. The established policies, compensation rates and

resettlement programs have been followed strictly during LA and HD. Therefore, the resettlement

policies of the Project comply not only with the laws, regulations and policies on LA and HD of the

PRC, but also with the World Bank’s policy on involuntary resettlement, and have been accepted by

the AHs in practice.

(4). Resettlement progress

The resettlement modes for LA include cash compensation, endowment insurance for LEFs,

employment training, etc. The AHs have received full compensation; eligible APs may cover

endowment insurance for LEFs, new-type rural cooperative medical insurance or basic medical

insurance for urban residents voluntarily. Employment training and jobs are offered under the

Project at the option of the APs.

The resettlement modes for HD include cash compensation and property swap. The

resettlement area is Tiexin Garden in Qiaotou Sub-district with convenient traffic and sound

infrastructure. To date, 12 resettlement buildings have been completed, while the other 4 under

construction, and the infrastructure is being improved. It is expected that all AHs will be resettled by

October 1, 2014. The AHs are during the transition period and can receive a transition subsidy.


40

According to the questionnaire survey, all 93 sample households have chosen the resettlement

mode of property swap and entered into HD compensation agreements. The 93 sample households

had a total building area of 12,436 m2 before HD, including residential houses of 8,926.77 m2

(71.78%), utility rooms of 2,192.42 m2 (17.63%) and illegal buildings of 1,316.81 m2 (0.59%). Their

former houses are in masonry timber structure mainly, and their resettlement houses will all be in

masonry concrete structure. The sample households are highly satisfied with the resettlement mode,

resettlement site and resettlement housing construction.

After LA and HD (2013), the per capita annual income of the sample households was

14,637.63 yuan, 4,621.78 yuan more than that before LA and HD (2011). However, since

resettlement has not been fully completed, still 4 households have not restored their income,

accounting for 4.3% of all sample households. The resettlement area is closer to Qiaotou Old Street

and the center of BSDPP, so that the AHs will receive more training, employment and business

startup opportunities.

(5). Income restoration and satisfaction

The APs are familiar with the compensation and resettlement policies of the Project, and have

received compensation fees and subsidies fully and timely. The resettlement area meets the APs’

requirements for infrastructure, environment, traffic, social network, etc. The APs are highly

satisfied.

(6). Public participation and grievance redress

During LA and HD, the resettlement implementing agencies paid great attention to public

participation and consultation, and published an announcement and held a mobilization meeting for

pubic comment. The appeal channel is unobstructed, transparent and effective.

9.2 Outstanding Issues and suggestion

（1） Outstanding issues

1) Currently, 4 buildings of the resettlement area are still under construction, and the property

management and infrastructure of the area are being improved. The resettlement area is expected

to be completed at the end of October 2014. Therefore, the AHs choosing property swap are still

during the transition period.

2) According to the sampling survey, the income of 4 of the 93 sample AHs has not been

restored to the pre-resettlement levels.

（2） Proposed actions

1) The construction of the resettlement area should be accelerated, and its construction

progress and quality ensured so that the AHs, especially vulnerable groups, can be resettled by the

end of December 2014;

2) The resettlement agencies should pay transition subsidy to the AHs fully and timely so that

they can get through the transition period successfully;

3) A follow-up survey should be conducted on the income of the 4 AHs whose income has not

been restored yet to ensure their income restoration.

4) BGSP should appoint a qualified, independent and experienced third party to conduct

monitor on the above outstanding issues, and submit an M&E report to Societe Generale in May

2015. See Table 9-1 for details.


41

Table 9- 1 Outstanding Resettlement Issues and Proposed Actions

No. Outstanding issue Proposed action Agency responsible

1

Completion of

resettlement housing

Accelerating the construction of the resettlement

area, ensuring construction progress and quality,

and making sure that the AHs can move into it by

December 2014

Tiexin Garden

Resettlement Headquarters

2

Can transition subsidy

be paid timely during

transition?

Paying transition subsidy to the AHs fully and

timely BSDPP Management

Committee

3

Can vulnerable groups

receive assistance

during resettlement?

Providing assistance to vulnerable groups and

ensuring that they can move into the

resettlement area by December 2014

Tiexin Garden

Resettlement Headquarters

4 The income of 4 AHs

has not been restored.

Continuing to track their restoration measures

and income restoration External M&E agency

5 External M&E Appointing an external M&E agency, which

should submit an M&E report in May 2015 BGSP

（3） External M&E arrangements

BGSP will appoint an independent third party to conduct M&E on the implementation and

effectiveness of the actions proposed for the outstanding issues, and submit a resettlement M&E

report to Societe Generale.

1) Purpose

Based on the above outstanding issues, the purpose of M&E is to supervise the construction of

the resettlement area and the resettlement of the AHs, especially vulnerable groups, and ensure

that production level and living standard the APs are restored.

2) Scope

Based on the above outstanding issues, M&E should include the following:

Construction progress and quality the resettlement area;

Payment of compensation fees during the transition period;

Date and program of resettlement for the AHs;

Assistance measures for vulnerable groups during resettlement;

Restoration of the production level and living standard the APs (for the 4 AHs whose

income has not been restored yet mainly)

3) M&E reporting

The external M&E agency will submit a resettlement M&E report in May 2015. If there is still

any outstanding issue, follow-up monitoring will be conducted until the production level and living

standard the APs have been restored to the pre-resettlement levels or improved.


42

Appendixes

Appendix 1: Reply on Township-level Land Planning of Pingshan District, Benxi City (LPGL [2012]

No.135)


43

Appendix 2: Reply on the Adjustment New Plots for Construction Projects in Pingshan District,

Benxi City (First Batch) (LPGLG [2012] No.288)


44

Appendix 3: Reply on the Adjustment New Plots for Construction Projects in Pingshan District,

Benxi City (Second Batch) (LPGLG [2012] No.295)


45

Appendix 4: Certificate of The Right to Use State-owned Land of the Project


46

Appendix 5: Compensation Rates for Affected Attachments


47


48

Appendix 6: Tables of Sample Survey

Table 1 Age Distribution and Population Situation of Households

No. Respondent Sex Age

Family

population

in 2011

Family population in 2013

Total Labor Female

labor Underage

Elderly

people

1 DYX F 59 4 4 3 2

2 LXS M 53 3 3 3 1

3 SXJ F 32 5 5 2 1 2

4 HXS M 53 4 4 3 1 1

5 LXS M 50 3 3 3 2

6 DNS M 55 5 5 5 3

7 ZXS M 59 4 4 4 1

8 LB M 41 3 3 3 1

9 LLQ M 56 5 5 3 1

10 SXS M 82 2 2 0 0 2

11 JLL M 74 5 5 3 1 2

12 ZWS M 52 3 4 3 1 1

13 HSQ M 54 3 4 3 1 1

14 LXS M 50 3 3 3 1

15 WDS F 43 4 4 3 2

16 ZZX M 58 4 5 3 1 2

17 SCZ F 63 1 1 0 0 1

18 ZPX M 60 2 2 0 0 1

19 YXJ F 65 1 1 0 0 1

20 GWJ M 42 4 4 3 1 1

21 WJH M 77 6 7 4 1 1 1

22 WZM M 40 3 3 2 1 1

23 WLF M 50 4 4 3 1 1

24 ZGM M 50 5 5 3 1

25 ZZW M 95 7 7 4 1 2

26 LSJ M 80 5 5 3 1 1

27 WYX M 71 4 4 3 1 1

28 FXZ F 68 5 6 4 2 1

29 GFQ M 49 5 5 3 1 1

30 ZQJ F 50 1 1 0 0

31 WKM M 63 1 1 0 0 1

32 ZZF M 65 1 1 0 0 1

33 ZSX M 40 1 1 1 0

34 ZSL M 43 1 1 1 0

35 LSQ M 56 2 2 1 0

36 HYD M 27 3 3 2 1 1


49

37 ZSC M 44 4 4 2 1 1

38 LB M 40 4 4 2 1 1

39 LGH F 59 1 1 0 0

40 YZH M 55 2 2 1 0

41 LY M 59 4 5 3 1

42 ZSM M 44 4 4 4 2

43 LSH M 62 4 5 2 1 2 1

44 LHL F 47 3 3 3 1

45 ZXH M 63 5 5 2 1 1 1

46 ZPJ M 42 1 1 1 0

47 SLX M 52 3 3 3 1

48 ZZL M 42 4 4 2 1 2

49 HYL M 38 4 4 2 1 2

50 ZYC M 70 2 2 0 0 2

51 FY M 32 3 3 2 1 1

52 FCY M 56 5 5 3 0 2

53 ZYQ F 72 6 6 4 1 1

54 YGX F 74 2 2 0 0 2

55 BFG M 24 3 3 2 1

56 BYG M 48 4 4 4 1

57 SLY F 52 3 4 2 0 2

58 SHG M 29 4 4 2 1 1

59 FLT M 42 3 3 2 1 1

60 LHB F 67 2 2 0 0 2

61 SMP F 40 4 4 2 1 2

62 DLL F 46 5 5 2 1

63 HJF F 86 4 4 2 1 2

64 LSJ F 73 4 4 2 1 1

65 YLL F 22 3 3 3 2

66 DY F 39 3 3 2 1 1

67 ZWL F 58 4 4 3 1

68 ZSC M 64 6 6 3 2 1

69 ZQ F 41 3 3 2 1 1

70 SCZ M 42 3 3 2 1 1

71 DML F 47 4 4 3 1

72 LGC M 74 5 5 2 1 1

73 ZYJ M 42 3 3 2 1 1

74 HWN M 55 4 4 3 1

75 ZGZ M 70 6 6 2 1 1

76 ZXA M 70 2 2 0 0 2

77 ZSG M 55 3 3 2 1


50

78 CYT M 55 3 4 2 1

79 DWQ M 79 2 2 0 0 2

80 ZGY M 48 3 3 1 1 1

81 ZWB M 87 2 2 0 0 2

82 ZGQ M 48 5 5 3 1

83 ZGL M 62 3 3 2 1 1

84 CWY M 68 3 4 3 1 1

85 WKL M 53 3 3 3 1

86 LJG M 60 6 6 3 1 1

87 WJB M 60 5 5 3 1 1

88 WDS M 42 3 3 2 1

89 HSY F 72 6 6 2 1 2

90 HQL M 34 3 3 2 1 1

91 HWM M 62 5 5 4 1

92 SJJ M 41 3 3 2 1 1

93 HWG M 48 4 4 3 1

Total 93 / / 327 337 204 81 39 41

Table 2 Comparison of Income of AHs before and After LA/HD

No. Respondent

Per capita indicator in 2011

(yuan/person)


(yuan/person) Variation (yuan/person)

Income Expenditure Income Expenditure Income Expenditure

1 DYX 7000 4500 9800 5000 2800 500

2 LXS 8000 5000 12000 6000 4000 1000

3 SXJ 6000 4000 8000 5500 2000 1500

4 HXS 10000 4500 13000 7000 3000 2500

5 LXS 12000 5000 15000 8000 3000 3000

6 DNS 8800 5000 16000 10000 7200 5000

7 ZXS 10000 5500 12000 5500 2000 0

8 LB 17000 7000 22000 10000 5000 3000

9 LLQ 12000 5500 11000 6000 -1000 500

10 SXS 572 200 2000 300 1428 100

11 JLL 9000 4500 15000 8000 6000 3500

12 ZWS 12000 5000 17000 8000 5000 3000

13 HSQ 12000 5000 17000 9000 5000 4000

14 LXS 15000 4800 20000 10000 5000 5200

15 WDS 8000 4000 10000 4500 2000 500

16 ZZX 13000 6000 15000 6300 2000 300

17 SCZ 2000 1000 2000 500 0 -500

18 ZPX 3000 1000 5000 1000 2000 0

19 YXJ 1500 800 2000 500 500 -300

20 GWJ 20000 5000 18000 8000 -2000 3000


51

No. Respondent


(yuan/person)




21 WJH 9000 4500 13000 7000 4000 2500

22 WZM 9000 5000 14000 6000 5000 1000

23 WLF 20000 5000 22000 8000 2000 3000

24 ZGM 19000 5000 20000 7000 1000 2000

25 ZZW 19000 5000 22000 8000 3000 3000

26 LSJ 15000 6000 19000 6800 4000 800

27 WYX 16000 7000 20000 8000 4000 1000

28 FXZ 9000 4500 10000 5000 1000 500

29 GFQ 13000 5000 12500 5000 -500 0

30 ZQJ 3000 1500 6000 2000 3000 500

31 WKM 572 200 1500 450 928 250

32 ZZF 572 300 1500 500 928 200

33 ZSX 26000 6000 30000 10000 4000 4000

34 ZSL 25572 4000 33000 10000 7428 6000

35 LSQ 13072 5000 15000 5500 1928 500

36 HYD 9000 4200 16000 7000 7000 2800

37 ZSC 7000 3800 13000 6000 6000 2200

38 LB 7500 4200 13500 4500 6000 300

39 LGH 572 200 2000 500 1428 300

40 YZH 13072 6000 15000 5000 1928 -1000

41 LY 10000 5000 20000 7000 10000 2000

42 ZSM 13072 6000 17000 6500 3928 500

43 LSH 6000 4400 10000 4000 4000 -400

44 LHL 8000 3000 10000 4000 2000 1000

45 ZXH 5572 3400 13000 3000 7428 -400

46 ZPJ 20000 18000 25000 22000 5000 4000

47 SLX 18000 8000 25000 8800 7000 800

48 ZZL 6822 4000 13000 5600 6178 1600

49 HYL 6822 4000 14000 6000 7178 2000

50 ZYC 2000 1000 4000 800 2000 -200

51 FY 10000 5000 18000 6000 8000 1000

52 FCY 13072 5000 15000 5500 1928 500

53 ZYQ 9000 4500 12000 5000 3000 500

54 YGX 3000 1000 4500 1200 1500 200

55 BFG 11000 8000 20000 9000 9000 1000

56 BYG 13072 7000 25000 8000 11928 1000

57 SLY 18200 8000 20000 7800 1800 -200

58 SHG 6822 5000 15000 6600 8178 1600

59 FLT 10000 5000 20000 6000 10000 1000


52

No. Respondent


(yuan/person)




60 LHB 2000 500 3000 1000 1000 500

61 SMP 8000 3500 11000 5000 3000 1500

62 DLL 8000 4000 10000 5000 2000 1000

63 HJF 9000 4500 13000 5600 4000 1100

64 LSJ 10000 5000 13000 6000 3000 1000

65 YLL 12000 8000 25000 7000 13000 -1000

66 DY 11000 6000 20000 6500 9000 500

67 ZWL 11000 5000 22000 5600 11000 600

68 ZSC 6000 3000 15000 4000 9000 1000

69 ZQ 9000 5000 20000 6000 11000 1000

70 SCZ 9000 6000 18000 6000 9000 0

71 DML 15000 7000 25000 9000 10000 2000

72 LGC 6000 4000 10000 5000 4000 1000

73 ZYJ 9000 4500 17000 7000 8000 2500

74 HWN 13072 6000 20000 7000 6928 1000

75 ZGZ 13072 5000 20000 5500 6928 500

76 ZXA 1000 300 2000 300 1000 0

77 ZSG 10000 4000 18000 5000 8000 1000

78 CYT 8000 3000 13000 5000 5000 2000

79 DWQ 2000 500 3000 500 1000 0

80 ZGY 8000 3000 15000 6000 7000 3000

81 ZWB 1000 200 3000 300 2000 100

82 ZGQ 18000 6000 25000 8000 7000 2000

83 ZGL 9000 5000 15000 9000 6000 4000

84 CWY 13000 6000 19000 10000 6000 4000

85 WKL 18000 6500 25000 7000 7000 500

86 LJG 13072 7000 20000 8500 6928 1500

87 WJB 10000 5000 8000 7000 -2000 2000

88 WDS 10000 8000 15000 10000 5000 2000

89 HSY 8000 4000 11000 6000 3000 2000

90 HQL 8000 7000 15000 11000 7000 4000

91 HWM 8000 4000 12000 6000 4000 2000

92 SJJ 12000 8000 20000 12000 8000 4000

93 HWG 11000 6000 19000 10000 8000 4000

Average 10015.85 4639.78 14637.63 6093.01 4621.78 1453.23


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Appendix 7:Photos of Due Diligence Investigation


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