Anning Valley Agricultural Development Project - resettlement action plan (Vol. 1 of 3) : Executive summary

RP-001 8 VOL. 1 SUMMARY OF RESETTLEMENT ACTION PLAN FOR ANNING VALLEY AGRICULTURAL DEVELOPMENT PROJECT  A  Anning Valley Agricultural Development Project Resettlement Action Plan 1. This annex describes the land acquisition and resettlement requirements under the Manshuiwan and Huangqiao subcomponents of the Water Resources component of Anning Valley ADP. Detailed Resettlement Action Plans (RAP) have been prepared for Manshuiwan by the Daqiao Hydroelectric Development Corporation and for Huangqiao by the Panzhihua Task Group for the Anning Valley ADP to facilitate the mitigation of the adverse impacts of the project. For the Manshuiwan sub-component, 2,076 mu of land (including 320 mu of marginal land) are required and 2,006 people will be affected due to the inundation of the reservoir and construction of headworks and water conveyance systems. For the Huangqiao sub-component, 1,111 mu of land (including 463 mu of marginal land) are required and 632 people will be affected as a result of land acquisition for the reservoir. Following are the details of the resettlement and rehabilitation plan of the two sub-components. A. The Manshuiwan Subcomponent General 2. The Manshuiwan Subcomponent, which is located in Mianning and Dechang counties and Xichang City, comprises the construction of a 253 m wide and 22.5 m high weir across the Anning River and trunk, main and branch canal systems. The weir would divert water to irrigate about 14,400 ha on the left bank of the Anning River and to supply 380,000 m3 of raw water per day for domestic and industrial use. Lower level water distribution systems would be constructed with the participation of the benefiting rural communities. An 18 MW hydroelectric power station providing 117,000 MWh per annum would also be constructed under the subcomponent. Objective and Principle of Resettlement 3. The main objective of land acquisition and resettlement compensation is to ensure that the standards of living and income levels of all project affected persons (PAPs) are improved, or at least restored. To mitigate the adverse impacts DHDC has prepared a comprehensive strategy for implementing land acquisition and resettlement requirements under the Manshuiwan subcomponent. The strategy is based on the principle of "land for land", encouraging introducing diversified economic activities in the rural areas affected. Census & Socioeconomic Survey 4. The subcomponent is located in Liangshan Yi Autonomous Prefecture in Sichuan Province. The total population of the Prefecture is 3.72 million, out of which 1.56 million or 42% are Yi people, who generally live at higher mountain elevations. The Manshuiwan subcomponent affects two of the seventeen counties of the Prefecture and Xichang City. Most of the people affected by and benefiting from the subcomponent are Han people. 5. The weir and the reservoir area are located in the middle reach of the Anning River. Major crops grown in this reach are: paddy, maize, wheat, sugarcane, vegetables and fruits. A good portion of these crops receive some form of irrigation. In a normal year two crops are  2 grown, with an average yield in 1996 of 738 kg of grain per mu: The population largely consists all small farmers, with a 1996 average net income of Yuan 940 per capita. Adverse Project Impact 6. To allow for the construction of the weir, headworks and canal systems 2,076 mu of land need to be acquired pennanently and 1,239 mu temporarily (see Table 1). The land area to be acquired under the project is insignificant in relation to the land area cultivated in the two affected counties and Xichang City (see Table 2). Of the 2,006 PAPs, 874 will have to be relocated, 991 will loose part or all of their farmland to the construction of the headworks and canal system and 141 people will experience waterlogged conditions of their farmland due to their proximity to the reservoir (see Table 3). Table 1: Category of Land Acquisition Items Reservoir Area Headworks & Canals J Sub-total (mu) 1. Permanent land acquisition 468 1,608 2,076 - cultivated land 422 1,234 1,656 - marginal land 31 366 397 - house plots 15 8 23 2. Temrorary land acquisition 0 1,239 1,239 Total 468 2,847 3,315 7. Land acquisition will necessitate the demolition of 41,499 m2 of housing. In addition 101,123 trees, 2.69 km of power transmission lines, 0.6 km of telephone lines, 1.18 km of tractor roads, 1.93 km of irrigation canals and 2.88 km of flood protection walls will be moved or demolished. Table 2: Impact of Land Acquisition on Cultivated Land Area County/City Name Total Cultivated Average Land Land Required Reduction of Land per Land per Capita Capita (mu) Mianning County 228,000 1.30 840 0.005 Xichang City 301,000 1.03 1,020 0.003 Dechang County 89,800 1.09 216 0.002 Total 618,800 1.14 2,076 0.003 Table 3: Project Affected People Category Reservoir Headworks & Canals Sub-total People affected by land acquisition a 696 178 874 bouse demolishing People affected by land acquisition only 991 991 People affected by waterlogged conditions 141 0 141 of farmland Total 837 1,169 2,006  3 Legal Framework for Land Acquisition and Resettlement 8. The Government of China has issued a number of laws, regulations and guidelines related to resettlement planning and implementation. The Resettlement Action Plan (RAP) has been prepared in accordance with the stipulations of the these laws, regulations and guidelines. The main laws and regulations are the following: (a) Land Management Law of the People's Republic of China (1988); (b) Land Management Implementation Act of the People's Republic of China (1991); (c) The Land Management Implementation Act of Sichuan Province; (d) Regulations on Land Acquisition and Resettlement Compensation for Large and Mid-sized Water and Hydropower Projects (1991); (e) The Sichuan Provincial Regulation on Land Acquisition and Resettlement Compensation for the Construction of Big Hydroelectric Power Projects; (f) The Land Management Implementation Act of Liangshan Yi Autonomous Prefecture. Beneficial Impact of Project 9. About 1,281 mu of land are needed for the construction of the trunk, main and branch canals, which works out about 9.8 mu for each km of the 130 km total length. The villages along the canal will receive irrigation water and because of that greatly improve agricultural production and their net incomes. The farming households affected by land acquisition are at the same time benefiting from the project. Rehabilitation Plan 10. After completion of the weir, the land remaining in the vicinity of the reservoir area will only be able to support 132 people. Consequently 132 people will be relocated to the foot hills of the reservoir area, while the balance 564 (696-132) will have to move out of the reservoir area. The land of the 141 people affected by reservoir water intrusion will be provided with water retaining walls and drainage systems. They will not need to be relocated. The construction of the water conveyance systems will require the relocation of 178 people. Another 1,169 people, whose land is affected by canal construction, will receive land through redistribution of cultivated land in the villages they move to. The rehabilitation plan for the above five groups of people is shown in Table 4. 11. As a result of careful investigation, five townships in the Xichang City, downstream of Manshuiwan weir, have been selected as relocation areas for the 564 people from the weir/reservoir site. The 230 Yuehua Township people will be resettled as a group, while the others will be scattered over existing villages in the other four townships. The construction of a new community at Yuehua Township, A rehabilitation plan is under preparation for the construction of facilities for the people of the Yuehua Township, including electricity and water  4 supply, access roads and the reclamation of 230 mu of uncultivated lands. Details of the relocation characteristics to these five townships are shown in Table 5. Table 4: Rehabilitation Plan for All PAPs Items Activities Cost (YI,000) L. Rehabilitation of production 14,089 facilities (a) 132 people to be moved to develop 140 mu of marginal land in the 214 higher up in the reservoir area reservoir area and to build 15 water storage ponds (b) 564 people to be moved out to develop 230 mu of marginal land in 2,596 of reservoir area Yuehua Township and redistribute 313 mu of farmland (c) protecting farm land of 141 to build retaining walls and drainage 514 people situated in the vicinity of systems the reservoir (d) 178 people to be resettled same as under (e) below from their canal sites_ (e) 1,169 people whose land will to redistribute 1 ,170 mu of farmland 6,868 be affected by construction of _canal systems. (f) Temporary land acquisition to provide compensation and return land in 3,897 good order 2. Rehabilitation of livelihood 5,188 facilities (1) All those to be relocated provide houses to them 4,648 (2) ditto to supply electricity and water 203 (3) Yuehua new village to build village infrastructure 337 Total 19,277 Table 5: Land Production Capacity for Reservoir Oustees Name of Status in 1996 Rehabilitation Plan Projection for year 2000 Township Land/ Grain Land Number Method of Land/capita Grain/ capita capita yield/ available of people rehabilitation (mu) (kg) (mu) capita (kg) (mu) moved Yuehua 0.92 547 1,020 230 OW \1 0.88 555 Lizhou 0.82 497 730 100 RIAL \2 0.78 502 Xingsheng 1.07 623 450 80 RIAL 1.02 629 Xixiang 1.03 653 180 90 RIAL 0.98 660 Anning 1.06 574 860 64 RIAL 1.02 581 Total 0.98 577 3,240 564 0.93 584 \1: moved to land in need of reclamation. \2: moved to redistributed and improved available land. Policy Incentives 12. The preferential resettlement policy consists of: (i) tax exemption on agricultural - products for three years; (ii) no charge for irrigation water and electricity for domestic use for three years; (iii) no fee for timber cultivation and sand handling if used for constructing new  5 houses; (iv) equal treatment in distributing farmland, house lots, some land for personal use and job opportunities; (v) no charge for children changing schools; (vi) no charge for training in agricultural production; and (vii) to reduce, suspend or exempt from taxes for 3-5 years for those embarking on breeding and processing programs. Costs and Budget 13. Compensation for land acquisition will be based on an average production value of Yuan 726/mu for the reservoir area and Yuan 823/mu for the canal areas. A production value multiplier of 6.5 is used for land acquisition and resettlement compensation of cultivated land; a multiplier of 5 for house plots; 3.25 for marginal land; and 2 for temporary land use. The cost of land acquisition and resettlement compensation amounts to Yuan 19.4 (Items #1, 2, 3 and 6 in Table 6). The total resettlement cost is estimated at Yuan 29.1 million. The breakdown of this cost and an annual investment plan are shown below in Tables 6 and 7 respectively: Table 6: Resettlement Cost Estimate (in Yuan 1,000) Item Unit Reservoir Area Canal Area Sub-Total Unit Cost Quantity Value Unit Cost Quantity Value _______ _(Y) (YI,000) (Y) (Y l,000) I. Land acquisition 2,474 11,626 14,100 - cultivated land mu 4,716 382 1,799 5,346 1,280 6,842 8,641 - wasteland mu 2,358 264 621 2,673 320 854 1,475 - house plots mu 3,628 15 54 4,113 8 33 87 - temporary land mu 3,145 1,239 3,897 3,897 2. Houses 3,392 910 4,302 - brick & timber house m 180 257 46 46 - timber house m 130 1,991 259 130 7,000 910 1,169 - timber & earthen house m2 105 29,396 3,087 3,087 3. Other structures 233 36 269 4. Trees 3,372 718 4,090 5. Otherfacilities 281 281 6. Rehabilitation 540 78 618 7. Moving subs. 208 36 244 & Specific items 1,025 1,025 9. Clean res. base 26 26 Base Cost 11,551 13,404 24,995 10. Adm Fee 759 906 1,665 - land acquisition fee 0.3% of 1 7 35 42 - training 0.5% of base-cost 58 67 125 - survey & design 2% of base-cost 231 268 499 - administration 3% of base-cost 347 402 749 -M&E 1% of base-cost 116 134 250 11. Contingencies 10% of base-cost 1,155 1,340 2,495 TOTAL 13,465 15,650 29,115  6 Table 7: Annual Investment Plan unit: Yuan 1,000 Items First Year Second Year Third Year Sub-Total 1. Land acquisition and resettlement 5,498 12,382 6,024 23,904 compensation 2. Specific items 474 551 1,025 3. Cleaning of reservoir base 26 26 Base Cost 24,995 4. Administrationfee 367 857 441 1,665 5. Contingencies 550 1,285 660 2,495 Total 6,415 14,998 7,702 29,115 Management and Application of Resettlement Funds 14. Funds allocated for the land acquisition and resettlement programs will be disbursed to the individual resettlers by the following project owners: