China - Third Jiangxi Highway Project : resettlement action plan (Vol. 2 of 2) : Resettlement policy framework

RP373 VOL. 2 PEOPLE'S REPUBLIC OF CHINA Third Jiangxi Highway Project (Local Road Improvement Program) ( W7) is a ) Resettlement Policy Framework The World Bank Loan Project Office of JPCD November 2005 Jiangxi China 2005W11A q31X E#i  Resettlement Policy Framework For Local Roads Improvement Program Component Under Jiangxi Highway III Project A. Project Introduction 1. The Local Roads Improvement Program (LRIP) of approximately US$66 million aims to improve access in poor areas of the province. The size of the LRIP will be at least 10% of the total project cost and the amount of the Bank financing shall be approximately US$10 million. The LRIP will be implemented in two phases. The following two sections have been selected for Phase I of the program: Chuengyi - Fengzhou road (48.5 km) and Meicun - Longbu road (34.8 km). The additional road sections for Phase II will be identified using the same selection criteria. Ganzhou, the largest prefecture in the province, is the priority area for the LRIP, and is where the expressway component will be built. Currently its road network density is about 23 km/100 kin2, about 3 8% lower than the average road density (37 kim/per 100 kin2) in the province. Among the total mileage of 11,544 km in Ganzhou City Prefecture, 8,901 km of roads are Class IV or unclassified, some 2% lower than the average technical standard in the province. As one of the poorest prefectures with lowest densities of road network in the province, the LRIP component will support high priority needs of local access. B. Principles and Objectives 2' In World Bank assisted projects, final borrowers or subproject sponsors are expected to take all necessary measures to mitigate adverse social impacts. The costs associated with mitigation of adverse social impacts on project affected people, such as relocation of affected persons or restoration of livelihoods will be met by the subproject sponsors. The general guidelines of this RPF are to be followed by all subprojects under the Loan involving involuntary resettlement. Where adverse social impacts are identified, plans for resettlement and rehabilitation (R&R) will need to be prepared based on policies and procedures laid out in this framework. 3. Every effort will be made to avoid or minimize the need for land acquisition and resettlement for any subprojects. In the unlikely and exceptional event that any of the subprojects under the Jiangxi Highway III Project require additional land, houses and other assets becomes unavoidable, the subproject sponsors shall adopt this RPF. 4. The principle objective of the RPF is to ensure that all Project Affected People (PAP) will be compensated for their losses and provided with rehabilitation measures to assist them to improve, or at least maintain, their pre-project living standards and income earning capacity. 5. The PAP include the following persons to be identified by the baseline information collected: (a) The persons whose place of business or employment, and/or agricultural land is in part or in total affected (permanently or temporarily) by the sub-projects;  (b) Persons whose houses are in part or in total affected by the sub-projects; (c) Persons whose business are affected in part or in total (temporarily or permanently) by the sub-projects; and (d) Persons whose crops (annual and perennial), trees and fixed assets are affected in part or in total by the sub-projects. 6. The principles outlined in the World Bank's OP/BP 4.12 have been adopted in preparing this RPF. In this regard, the following principles and objectives would be applied: (a) Acquisition of land and other assets, and resettlement of people will be minimized as much as possible. Where land acquisition is unavoidable, the project will be designed to minimize adverse impact on the (PAP), especially the vulnerable groups; (b) All PAP will be compensated, relocated and rehabilitated, if required, so as to improve their standard of living, income earning capacity and production capacity, or at least to restore them to pre-Project levels; (c) All PAP residing in, or cultivating land, or having rights over resources within the subproject area of the socioeconomic survey are entitled to compensation for their losses and/or income rehabilitation. Lack of legal right to the assets lost will not bar the PAP from entitlement to such compensation, rehabilitation and relocation measures; (d) The rehabilitation measures to be provided are (i) compensation at full replacement cost for houses and other structures; (ii) compensation of land acquisition and resettlement subsidy for the affected villages and farmers; (iii) dislocation allowance and transition subsides; (iv) full compensation for crops, trees and other similar agricultural products at market value; and (v) other assets, and appropriate rehabilitation measures to compensate for loss of livelihood; (e) Replacement house-plots, place of business and agricultural land will be as close as possible to the land that was lost, and acceptable to the PAP; (f) Land-for-land is the preferred option. Land-for-land may be substituted by cash provided that: (i) land is not available in the proximity of the subproject area; (ii) PAP willingly accept cash compensation for land and all assets on it; and receive full replacement value without any deductions for depreciation; and (iii) cash compensation is accompanied by appropriate rehabilitation measures which together with project benefits results in restoration of incomes to at least pre-project levels; (g) The resettlement transition period will be minimized, land-for-land and/or cash compensation provided to the PAP completed prior to the expected start- up date of works in the respective subprojects; (h) Resettlement plans will be implemented following approval of People's Government of Jiangxi Province and consultations with the PAP, and will have the endorsement of the PAP; (i) The previous level of community services and access to resources will be maintained or improved after resettlement; (j) Any acquisition of, or restriction on access to resources owned or managed by PAP as common property will be mitigated by arrangements ensuring access of those PAP to equivalent resources on a continuing basis; (k) Financial and physical resources for resettlement and rehabilitation will be made available as and when required;  (1) Resettlement program will include adequate institutional arrangements to ensure effective and timely design, planning and implementation of resettlement and rehabilitation measures; (m) Adequate arrangements for effective and timely internal and external monitoring will be made on implementation of all resettlement measures; (n) Wherever possible the subprojects will ensure that local residents in the affected areas benefit from the services and facilities created for, or by, the subprojects. C. Process for Preparing and Approving Resettlement Plans 7. All subprojects involving involuntary resettlement will be required to carry out a socioeconomic survey to determine the impact on the affected area and the affected population. The survey will determine whether or not the subproject would need preparation of a Resettlement Plan (RP) or an Abbreviated Resettlement Plan (ARP) to offset adverse impacts and access to benefits by the affected communities. The main sequential steps involving in the resettlement approval process are as follows: (a) Subproject sponsor furnishes preliminary information report on the proposed subproject to the Project Resettlement Office (PRO) of JPCD and the local authorities at the earliest possible stage. The preliminary information report would contain basic information on: (i) the proposed location of project; (ii) the total area of land required for the physical subproject, the type of land, current land use and possible impacts of land use changes, and the proposed strategy for land acquisition; (iii) the people to be affected by the subproject including those losing home, land or livelihoods; and those deriving benefits (employment, electricity, etc.) from the subproject; (b) PRO will, after its review and consultation with the local authorities, inform the subproject sponsor to prepare a resettlement document according to this RPF; (c) For each subproject that may involve resettlement, the Bank requires a satisfactory resettlement plan or an abbreviated resettlement plan that is consistent with the provision of the policy framework be submitted to the Bank for approval before the subproject is accepted for Bank financing. When the number of persons affected by the subproject exceeds 200, a resettlement plan shall be prepared. Where impacts on the entire affected population are minor, or fewer than 200 people are affected, an abbreviated resettlement plan may be agreed with the borrower. Impacts are considered "minor" if the affected people are not physically displaced and less than 10% of their productive assets are lost; (d) The subproject sponsor prepares the RP or ARP and submits it to the local authorities, PRO and the task team of the World Bank for review/concurrence; (e) The reviewers shall verify the adequacy of the report in light of policies, principles and procedures set out in this RPF, and convey the decision to the subproject sponsor; (f) After obtaining concurrence of the World Bank, the subproject sponsor executes the RP or ARP which would also contain term and conditions related to implementation of the plans agreed in this RPF.  8. The ARP for each subproject will be prepared by the respective subproject sponsor in accordance with the provisions of this RPF. The ARP includes the following contents: (a) a census survey of displaced persons and valuation of assets; (b) description of compensation and other resettlement assistance to be provided; (c) consultations with displaced people about acceptable alternatives; (d) institutional responsibility for implementation and procedures for grievance redress; (e) arrangements for monitoring and implementation; and (f) a timetable and budget. 9. The RP to be submitted thereafter needs not include the policy principles, entitlements, and eligibility criteria, organizational arrangements, arrangements for monitoring and evaluation, the framework for participation, and mechanisms for grievance redress set forth in the resettlement policy framework. The subproject specific resettlement plan needs to include baseline census and socioeconomic survey information; specific compensation rates and standards; policy entitlements related to any additional impacts identified through the census or survey; description of resettlement sites and programs for improvement or restoration of livelihoods and standards of living; implementation schedule for resettlement activities; and detailed cost estimate. The RP includes the following contents: (a) description of the subproject; (b) potential impacts; (c) socioeconomic studies and baseline census; (d) additional policy entitlements; (e) compensation rates for losses; (f) resettlement measures; (g) site selection, site preparation, and relocation; (h) housing, infrastructure, and social services; (i) implementation schedule; (j) costs and budget. D. Estimated Population Displacement 10. The subproj ects under the LRIP component are generally improvement of the existing roads, therefore the resettlement impact is minor. Non-agricultural land is encouraged. However, agricultural land will be taken if non-agricultural land is not available. Population affected is generally the farmers working on the land. Demolition of residential houses can be avoided and minimized. For the proposed two local roads, the average addition land requested is 37 mu/km, out of which 10 mu/km is cultivated land. The cultivated land taken for the two local roads is just 2% of the total cultivated land the affected villages own. The average households need to be relocated is 2 households/km in an average. E. Eligibility Criteria 11. The entitlement policy aims to enable PAP to replace the assets they have lost on account of the project, to recover and to improve upon their pre-subproject living standards within the shortest possible time. In general, the resettlement & rehabilitation (R&R) package would consist of (i) provision for replacement assets or  its cash equivalent, where replacement is not feasible; (ii) rehabilitation grants to compensate for temporary disruption in life and economic activities; (iii) either employment or training, capital and enterprise support for income restoration in case of loss of livelihoods, and (iv) provision for replacement of community facilities and services for affected communities. 12. PAP losing agricultural land will be entitled to the following types of compensation and rehabilitation measures: (a) For the majority of schemes, the land will be reallocated within the village by the village committees. Land acquisition and resettlement compensation will be therefore paid up to the level sufficient to restore the livelihoods of the PAP to the pre-subproject level; (b) The land compensation funds will be used for (i) increasing land areas under cultivation if land is available; (ii) intensification of agriculture through provision of irrigation, improved agricultural practices, etc.; (iii) development of non-agriculture based income generation activities; and (iv) support of PAP to look for jobs by themselves; (c) PAP whose land is temporarily taken by the works under the subproject will be compensated for their loss of income, standing crops and for the cost of soil restoration and damaged infrastructures. 13. PAP losing house and auxiliary structures will be entitled to the following compensation and rehabilitation measures: (a) PAP whose houses are being acquired by the sub-project will be provided replacement housing within easy communing distance of their existing homes; (b) PAP will be provided with compensation at full replacement value, without any deduction for depreciation, for any structures affected by the subproject; 14. If the house and/or structure is only partially affected by the subprojects, the subproject sponsors may, if it is acceptable to the PAP, acquire the entire structures with full compensation or provide cash compensation for the portion affected as mutually agreed between the PAP and the sponsors. 15. PAP losing business will be entitled to the following compensation and rehabilitation measures: (a) The mechanism for compensation loss of business will be: (i) the provision of alternative business site of equal size and accessibility to customers, satisfactory to the PAP; (ii) cash compensation to the owner for lost business structure reflecting full replacement cost of the structures, without depreciation and the cost of transfer; and (iii) cash compensation for the loss of income during the transition period. F. Legal Framework 16. The key national and provincial laws and regulations include: (a) The Land Administration Law of the People's Republic of China (adopted at the 16"' Meeting of the Standing Committee of the Sixth National People's Congress on June 25, 1986, amended in accordance with the Decision on Revising the Land Administration Law of the People's Republic of China made by the Standing Committee of the Seventh National People's Congress  at its 5'h Meeting held on December 29, 1988, and revised at the 4t0' Meeting of the Standing Committee of the Ninth National People's congress on August 29, 1998); (b) The Details of Implementing the Land Administration Law of PRC in Jiangxi Province. G. Organizational Procedures 17. Although the primary responsibility for enforcement of the RPF and implementation of the R&R rest with the sub-project sponsors, the oversight responsibility shall rest with the PRO of JPCD. PRO shall also carry out regular monitoring as required by the World Bank, to ensure that the provisions of the RPF are satisfied. H. Implementation Process 18. A detailed implementation schedule of the various activities to be undertaken will be included in the resettlement instrument. Payment of compensation and furnishing of other rehabilitation entitlements (in cash or in-kind), and relocation if that be the case, will be completed at least one month prior to the scheduled start-up date of works in the respective subproject site. I. Grievance Redress Mechanisms 19. Since the resettlement work will be carried out with the full participation of the PAP, it is expected that no major grievance issue will arise. However, to ensure that the PAP have avenues for redressing their grievance related to any aspect of land acquisition and resettlement, detailed procedures of redressal of grievances have been established in this RPF. The objective is to respond to the complaints of the PAP speedily and in a transparent manner, without resorting to complicated formal channels to the extent possible. 20. The procedures are as follows: (a) Stage 1, any person aggrieved by any aspect of the resettlement document can lodge an oral or written grievance to the Village Committee, township/ town govermnent or Residents Committee, District Government; (b) Stage 2, if the aggrieved person is not satisfied with the decision of the grass- roots authorities at Stage 1, s/he can present the case to the land administration bureau from those immediately above Stage 1 level through the highest authorities of the respective area. (c) Stage 3, if the PAP is still dissatisfied with the decision of the higher authorities, the case may be submitted for consideration by the People's Court in Accordance with the "Civil Procedure Act". J. Funding Arrangement 21. Compensation of farmland is based on eight times of the average annual output value of the requisitioned land for three years preceding such requisition. Resettlement subsidies for requisition of cultivated land shall be five times of the average annual output value of the requisitioned cultivated for three years preceding  such requisition. In order to protect the interests of the farmers and to ensure the land acquisition and resettlement compensation will not be reduced by the drop of agricultural output value in the market, a minimum compensation of Y1 1,960/mu for paddy and Y7,540/mu for dry land is determined. 22. Details of the cost estimation and other compensation for moving and loss of production/business are included in the Resettlement Plan prepared for the project before appraisal. 23. The land acquisition and resettlement compensation are sourced from the counterpart funds. All the funds shall be paid to the PAP before the land is taken and the house is demolished. K. Participation and Consultation 24. The subproject sponsors would be required to carry out the participation and consultation of the people in the subproject areas. A broad acceptance of proposed measures by the PAP - including relocation areas and replacement lands, compensation policies and rates, proposed income restoration measures for R&R - will be a necessary condition for approval of the resettlement plans. 25. PAP will participate throughout the various stages of the planning and implementation of the resettlement plans. For these purposes and prior to the preparation of the resettlement plans, the PAP will be informed of the provisions of this RPF at public meetings. Each affected household or non-residential units will be fully informed by the relevant local governments of their entitlements and rehabilitation choices under the respective resettlement plan. L. Monitoring 26. The monitoring.of resettlement impacts will be carried out by the sub-project owners as an integral part of the implementation of the plans. It will assess achievements against key implementation targets and objectives and, accordingly, make corrections in the plans where necessary. Periodical monitoring reports will be submitted to PRO. In addition, the external monitoring, arranged tnder the Resettlement Plan prepared before the project appraisal, will cover all resettlement subprojects under the Jiangxi Provincial Highway III Project.  A. JgIV 10,000,000 G, AW h66,000,000 . , S N hRP't x iff tAS40~IMFU~ OINIIR-Ab9It p ' PI41 b 10%, fbtl,Tn A 10,000,000 7G o oX tX;;-i 4 3g9 R, R X o~ A T1 T- It ; %-,1 M A Pr IR n N 4CtI[ I (8. 5 // s --T fnWlYS;tiiS;YXM< (34.8 A%-) o &; IW,Ob rA <Eri1fflimiJ4TJ P'U'l 1g EiJf l$fitb''4S E3 it) mm A aN/A44 XI, E Agtt O ( EX 30\ Y 'A 23 3\/4 >2& jU11,544 I4XxtW 8,901 ''b4b ES : ;,71 -z tL+'t B. 'I J 2.X~ 7JKtFflTkib, w X