China - Xiaolangdi Resettlement

 ICRR 11923 Report Number : ICRR11923 ICR Review Operations Evaluation Department 1. Project Data: Date Posted : 09/24/2004 PROJ ID : P003644 Appraisal Actual Project Name : Xiaolangdi Resettlement Project Costs 571.2 840.9 US$M ) (US$M) Country : China Loan /Credit (US$M) Loan/ US$M ) 110.0 113.2 Sector (s): Board: SDV - General Cofinancing industry and trade sector US$M ) (US$M) (43%), General information and communications sector (19%), General transportation sector (19%), General agriculture fishing and forestry sector (11%), Central government administration (8%) L/C Number : C2605 Board Approval 94 FY ) (FY) Partners involved : Closing Date 12/31/2001 12/31/2001 Prepared by : Reviewed by : Group Manager : Group : Richard Berney Roy Gilbert Alain A. Barbu OEDSG 2. Project Objectives and Components a. Objectives Resettle and restore or improve the livelihood of 173,000 people (an increase from 154,000 included in the original project design) who needed to be resettled as a result of the construction of the Xiaolangdi Multipurpose Dam and the inundation of land when the water level was raised to the 265 meter level and the 545,000 (raised from 300,000 people included in the original project design) in the host communities of the resettlement area, and to minimize the strains of social adjustment for the resettlers and their host communities. b. Components Cost (Millions of Dollars) At Appraisal Actual 1. Construction of infrastructure and residents for new villages and towns . 292.9 483.2 2, Transfer of Resettlers 7.3 9.5 3. Planning, Design and Institutional Support 11.7 44.1 4. Livelihood Development. 257.1 295.7 5. Environment Management and Cultural Relics Protection 3.5 8.4 c. Comments on Project Cost, Financing and Dates Total project costs increased by 45% because (i) a more detailed land surveys showed that the affected population was 172,000, not 154,000 as originally estimated; (ii) that more reliance on land for land compensation was necessary because most of the original proposed country industry development projects were no longer considered viable in the rapidly changing economic environment of the late 1990s: (iii) the displaced were resettled in a much wider area, so that the affected population (in the areas where the resettlers moved ) increased from 300,000 to 545,000. The additional cost was fully financed by the Government, The increase in Bank funding (in US dollars) was due to exchange rate variations . 3. Achievement of Relevant Objectives: Resettlement and livelihood improvement : Resettlement: More than 99 percent of displaced persons have moved into new housing in their new villages, with appropriate infrastructure and public facilities . The quality of the housing and infrastructure facilities is significantly improved over original circumstances . The majority of resettlers moved as who communities, thereby maintaining their social networks. The remaining one percent chose to take compensation and resettle themselves . The Government continues to track this group to ensure that they are properly resettled . Improved living conditions: All 227 new villages are complete and functional with basic infrastructure , including fresh water supplies, drainage to a main drain or river system, improved roads for better access to markets, electricity and two-tank dry latrines or flush toilets to each household .. They now enjoy significantly better conditions in terms of housing, water supply and sanitary conditions, electricity, availability of infrastructure and access to public services . Livelihood Development: The objectives in this area have not yet been fully met . Only 75 percent of the villages have received the standards set for replacement land . In the 25 percent which have not, the villages have started alternative livelihood programs with their remaining compensation funds . As a result about 70 percent of the affected population have restored or improved their income, while the remaining 30 percent have reached "up to" 80% of their previous income level. Some of the difficulties may be a result of poor meteorological conditions in the area (a severe draught) and adverse macroeconomic developments, which have resulted in a decline in the income of all farmers. There is no comparative information about how the affected groups faired relative to those unaffected by the project. A post post-resettlement support fund has been established to address the issue of restoring the income of this group. Minimization of the social impacts on settlers and host communities : Social adjustment issues were integrated into the planning and design stages of each phrase of the resettlement program, including the farm support program, training in nonfarm employment, essential service throughout the resettlement areas and interaction with the host villages. Tremendous efforts were devoted to ensuring that the resettlement groups and host populations appear to have had a smooth social, economic and cultural integration . This was ensured by the institution of a consultative and participatory planning, design and implementation process ., including an effective information disclosure strategy the mobilization of all available channels for disseminating project information, such as resettlement policies and compensation rates, site designs and resettlement alternatives and grievance procedures . and for consultation and participation purposes. As an indication of the success of this integration, it was the host and township governments who actually implemented the resettlement program . Environmental Management: The environmental management plan (EMP) implemented (a) the operation of environmental and public health facilities in all new settlements. Environmental management implementation is monitored for water quality in the new villages and health in both the resettlement and the host communities . A 2001 Bank environmental thematic supervision mission rated the project as being very satisfactory . Cultural Heritage Protection: .Field surveys identified 180 sites of cultural significance and excavated 327,000 m2, and relocated, partially relocated, modelled and treated unearthed cultural relics, at a total cost of about $ 4.2 million. 4. Significant Outcomes/Impacts: All those who wanted to resettle in the project area have been resettled . Very few decided to move elsewhere . Living conditions have been improved and income levels are on their way to being improved . 70 % of the resettlers have achieved a level of income equal to or greater than before resettlement, and of the remaining 30%, almost all have reached 80% parity. (Many might have had substantially lower incomes even if dam construction and resettlement not taken place, given the incidence of drought and declines in agricultural product prices ). Living conditions in the new villages have been greatly improved which has lead to a reduction in the incidence of infectious disease is reportedly to only five percent of pre -project village levels.For instance, the incidence of infectious diseases in the new resettler villages is only 5 percent of that experienced in the pre -resettlement villages, primary because of improved environmental conditions . Special provisions were implemented to improve the lot of women, children and vulnerable groups (old and infirmed), who accounted for the majority of the resettlers . it is estimated that 35,000 women participated in skill training activities sponsored by the project . All the resettlement villages improved access to education and health facilities . Village school attendance has, with few exceptions, reached 100% . Sixty-two nursing homes have been established in the resettlement areas for the old and widowed . 5. Significant Shortcomings (including non-compliance with safeguard policies): Considering the size and scope of the project, it does not appear to have had any significant shortcomings . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: High Substantial Institutions were developed to support implementation of the resettlement program worked extremely well, but there is no indication that they were designed to outlive the implementation of this one resettlement program so a to support China's other large resettlement programs. Sustainability : Highly Likely Highly Likely Bank Performance : Satisfactory Satisfactory The Bank brought significant value added  to design and supervision of project . In project design it convinced the Government to shifting from compensation for existing settlements but to actual costs of developing new settlements, to include landless workers, to improve the transparency of grievance and compensation procedures, in introducing a international group of experts review panel, in getting the Government to substantially increase its contribution to project cost when it was found that the resettlement groups were much larger than originally estimated, in flexibly responding to the changes in economic conditions in China which necessitated the cancellation of the industrial component of the project, and replacing it with an agricultural based alternative program. Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory NOTE: NOTE ICR rating values flagged with ' * ' don't comply with OP/BP 13.55, but are listed for completeness. 7. Lessons of Broad Applicability: Government commitment to (and financing for) post-relocation support for the resettlers, aimed at creating mechanisms for sustained improvements in income have been critical to the project's success . The introduction of an independent supervision and monitoring mechanism specifically for resettlement management, including separate functions for public health and environmental issues, with an international panel of experts strengthened the implementation capacity of the project, in the same was as similar institutional arrangements strengthened the of the construction of the dam . The consultative and participatory design of the resettlement program that enabled the full participation of the resettler communities greatly increased the level of ownership and satisfaction of those resettled . Active and early participation of the host population, among who the resettlement villages were located was critical in helping to create a smooth transition and promoted the social and economic integration of the resettlers into the host population . The livelihood development programs need to be given equal attention with the physical construction and relocation component of resettlement programs in the early stages of project implementation if they are to provide the timely benefits needed to bring incomes back to pre -resettlement levels. 8. Assessment Recommended? Yes No Why? At project completion only 70 percent of the resettlers had reached their pre -project income levels. The Government efforts are continuing, it is important to determine how successful these continued efforts to reach full pre-project equity will be. 9. Comments on Quality of ICR: It would have been extremely useful if the ICR had specifically identified the 17 specific resettlement criteria from Operational Directive 4.30 mentioned in ICR paragraph 3.5.1 that were used as the basis for project design and implementation and to discuss the project accomplishments in relationship to these resettlement policies . This is important because the extent that the project succeeded in meeting the Bank's safeguard policies is the critical element in determining project efficacy . Nevertheless, most of these objectives of the Bank's Resettlement Safeguards objectives were mentioned . (Including the establishment of an acceptable resettlement plan and resettlement policy, information to affected persons about options and rights, consultations and offers of choice, , effective compensation, the provision of moving assistance, the provision of housing and agricultural sites equivalent to the advantages of the old site, support after displacement for a transition period, development assistance in addition to compensation, land preparation, training, methods for grievance procedures and conflict resolution, women and children, and an international group of experts to monitor the program .) Matters that were not mentioned included what policies were in place for the elderly, for the landless, and for indigenous peoples (if there were any).