China - Ningbo Water Management (GEF) Project : resettlement action plan

i RP419 Funded by GEF Natural Wetland Project in Cixi, Ningbo Resettlement Action Plan (4th version) Cixi Construction Bureau April. 2006  Abbreviation APs Affected Persons ADCC An'dong Town Culturist Cooperation CXWPLT Cixi Wetland Project Leading Team CXOFB Cixi Ocean and Fishery Bureau CXWRB Cixi Water Resource Bureau CXLAB Cixi Land Administration Bureau M&E Monitoring and evaluation NPMO Ningbo Water and Environment Project Management Office CCB Cixi Construction Bureau RAP Resettlement Action Plan TGs Town Governments TGAD Town Governments of An'dong Town TGZX Town Governments of Zhouxiang Town ZXCA zhouxiang Town Culturist Association WI Wetlands International WB World Bank GEF Global Environment Facility  Table of Contents 1 BASIC SITUATION OF THE PROJECT ........................................... I 1.1 ORIGIN OF PROJECT .1 1.2 PROJECT AREAS .1 1.3 IMPACTS ON PROJECT AREAS. 2 1.4 SOCIAL AND ECONOMIC BACKGROUND IN THE PROJECT AREA. 3 1.5 TOTAL INVESTMENT AND CAPITAL SOURCE. 4 2 PROJECT IMPACTS. 6 2.1 AFFIRMANCE OF MUDFLAT OWNERSIP . . 6 2.2 PROJECT IMPACTS.. 6 2.3 AFFECTED CULTURISTS.. 7 2.3.1 Family Population Characteristics. 7 2.3.2 Production Condition and Habitation Condition. 10 2.3.3 Income Analysis .12 2.3.4 Expenditure Analysis .12 2.3.5 Income and Expenditure Comprehensive Analysis .13 2.3.6 The will of Resettlement .14 3 POLICY FRAMEWORK AND COMPENSATION RATE .15 3.1 LAWS AND POLICIES REFERRED IN RESETTLEMENT 15 3.2 LAWS AND POLICY ITEMS INVOLVED IN RESETTLEMENT . .15 3.2.1 Relative Regulations from The Land Administration Law of P.R.C .15 3.2.2 Relative Regulations from Fishery Law Of P.R . .15 3.2.3 Relative Regulations from Administration Measures of Maritime Space Use of PR.C. 16 3.2.4 Relative Regulations from Administration Measure of Cixi WaterArea Mudflat Aquiculture License (Try Out Draft) .18 3.2.5 Relative Regulations from the Circular on the Opinions of Promoting Aquiculture Industry Further by Cixi Peoples' Goverment .19 3.2.6 WB Policy on Involuntary Resettlement .19 3.3 RESETTLEMENT POLICIES OF THE PROJECT AND COMPENSATION RATE . .20 3.3.1 Resettlement Policies .20 3.3.2 Compensation Rate .21 3.4 ENTITLEMENT MATRIX ..23 4 BUDGET.25 4.1 TOTAL COST ..25 4.2 INVESTMENT PLAN AND MANAGEMENT . .25 4.2.1 Investment Plan .25 4.2.2 Cash Allocation and Management .26 5 INCOME RESTORATION MEASURES .27 I  5.1 RESETTLEMENT OBJECTIVES . ................................................................. 27 5.2 INCOME RESTORATION MEASURES . ................................................................. 27 5.2.1 Propaganda .27 5.2.2 Cash Compensation .27 5.2.3 Industry adjustment, renting land or Non-agricultural Employment 27 5.2.4 Information Service and Skill Training .28 5.2.5 Social Security .29 6 ORGANIZATIONS .... 31 6.1 IMPLEMENTATION INSTITUTES ..31 6.2 RESPONSIBILITIES OF INSTITUTES ..31 6.2.1 NBWEPMO. 31 6.2.2 CXWPLT .31 6.2.3 CCB .32 6.2.4 CXOFB and CXLAB .32 6.2.5 TGADCX and TGZXCX .33 6.2.6 ADCC and ZXCA .33 6.2.7 WI .33 6.2.8 IM&EI .33 6.3 ORGANIZATION CHART ................................................................... 34 6.4 ORGANIZATIONAL SENIORITY AND STAFFING .................................................................. 34 6.5 MEASURES FOR STRENGTHENING INSTITUTIONAL CAPACITY . ................................................ 35 7 IMPLEMENTATION SCHEDULE ............. ................................................ 37 7.1 PROGRESS JOINT OF RESETTLEMENT AND IMPLEMENTATION OF THE PROJECT ....................... 37 7.2 TABLE KEY TASK SCHEDULE IN RESETrLEMENT IMPLEMENTATION . . 37 7.2.1 Principles in Scheduling .............. ............................................... 37 7.2.2 Overall Schedule of Resettlement ............................... .............................. 3 7 8 INFORMATION DISCLOSURE, PUBLIC PARTICIPATION AND GRIEVANCE .............. 39 8.1 PUBLIC PARTICIPATION STRATEGY .................................................................. 39 8.2 PUBLIC PARTICIPATION PROCESS AND POLICY DISCLOSURE ................................................... 40 8.3 GRIEVANCE AND COMPLAINT PROCEDURE .................................................................. 41 9 MONITORING AND EVALUATION ............................................................. 43 9.1 INTERNAL MONITORING AND EVALUATION .................................................................. 43 9.1.1 Implementation Procedure ............... .............................................. 44 9.1.2 Indicators to be monitored ............................................................. 44 9.1.3 Intemal Monitoring Report ............................................................. 44 9.2 EXTERNAL MONITORING AND EVALUATION ................................................................... 44 9.2.1 External Monitoring and Evaluation Institute .......................................................... 44 9.2.2 Monitoring Procedure and Contents ............................................................. 44 9.3 Ex-POST EVALUATION .................................................................. 46 11  4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ List of Tables TABLE I -I SOCIO-ECONOMIC SITUATION OF PROJECT AREAS .................................................................4 TABLE 2-1 CONDITION OF AFFECTED MUDFLAT AQUICULTURE ..............................................................7 TABLE 2-2 ESTABLISHMENT OF AQUICULTURE AFFECTED BY THE PROJECT .................. ...........................7 TABLE 2-3 BASIC CONDITION OF AFFECTED POPULATIONS ....................................................................8 TABLE 2-4 AGE DISTRIBUTING OF AFFECTED POPULATIONS ...................................................................8 TABLE 2-5 EDUCATION CONDITION OF AFFECTED POPULATIONS ............................................................9 TABLE 2-6 EMPLOYMENT CONDITION OF AFFECTED POPULATIONS ........................................................9 TABLE 2-7 PRODUCTION CONDITION AND HABITATION CONDITION OF AFFECTED CULTURISTS ........... 11 TABLE 2-8 DURABLE CONSUMER GOODS OF AFFECTED HOUSEHOLDS .................... ............................ 12 TABLE 2-9 INCOME IMPACTS ANALYSIS .................. ................................................... 12 TABLE 2-10 EXPENDITURE ANALYSIS ................................................................ 13 TABLE 2-11 THE COMPREHENSIVE ANALYSIS ON INCOME AND EXPENDITURE ........................................ 13 TABLE 3-1 COMPENSATION RATE FOR MUDFLAT ACQUISITION ............................................................. 21 TABLE 3-2 RELATED ADMINISTRATION FEE ................ .............................................. 22 TABLE 3-2 COMPENSATION RATE FOR ESTABLISHMENT .............................................................. 22 TABLE 3-4 ENTITLEMENT MATRIX .............................................................. 23 TABLE 4-1 BUDGET FOR RESETTLEMENT .............. ................................................ 25 TABLE 4-2 ANNUAL INVESTMENT PLAN ............. ................................................. 25 TABLE 5-1 MENU OF EMPLOYMENT SKILL TRAINIG FOR FARMERS .................................................... 28 TABLE 6-1 STAFFING OF THE RESETTLEMENT INSTITUTES INVOLVED IN THE PROJECT ........... .............. 34 TABLE 6-2 TRAINING PLAN FOR RESETTLEMENT ............................................................... 36 TABLE 7-1 SCHEDULE FOR RESETTLEMENT .............................................................. 38 TABLE 8-1 PUBLIC PARTICIPATION PROCESS OF AFFECTED POPULATION .............................................. 40 TABLE 8-2 POLICY DISCLOSURE PROCESS ............................................................... 40 List of Figures FIGURE 1-1 SKETCH MAP OF PROJECTAREAS ............... ..........................................2 FIGURE 2-1 AGE DISTRIBUTING OF AFFECTED POPULATIONS ..........................................................8 FIGURE 2-2 EDUCATION PROPORTION OF AFFECTED POPULATIONS ...................................................9 FIGURE 2-3 EMPLOYMENT STRUCTURE OF AFFECTED POPULATIONS ... 10 111  1 Basic Situation of the Project 1.1 Origin of Project To help coastal countries solving environmental pollution problems, Global Environment Facility (GEF) and World Bank (WB) have promised to establish a "pollution-reducing funds" for East Asia ocean ecosystem. The objective is to "solve pollution problems, which are caused by terrestrial contamination, in coastal areas and rivers according to investment proportion". This fund will finance the innovative pollution-reducing projects that carried out by WB and can be the example of other areas. The objectives of GEF international water project are multi-boundary water system (such as coastal wetland areas) and some problems that can be resolved in its power, including natural habitat degradation in coast belt and coastal area construction. The preferential fields of the funds include prevention nature and ecology from further degradation and improvement hydrology environment of prime habitat (such as wetland), so as to maintain biological diversity, to offer fishes with habitat and reproduction places and to restore ecosystem. The purposes of the funds are to help such countries that are hunting for technique support and capital support, if they have the will of sustainable development, the funds will help them in capacity building and project implementation. Ningbo GEF Project reflects the preference in nation and area, which obtain active support from government, and the objective of this project is to protect and rebuild natural inhabit in Cixi coastal areas. The appointed wetland will be protected and improved to provide a good living environment for benthos, plants, migrators and resident birds. 1.2 Project Areas Natural wetland protection and constructed wetland are involved in this project. According to related Chinese law, these two kinds of lands are possessed by nation. The natural wetland lies in south bank of Hangzhou Bay, which locates in Andong Marsh and Zhouxiang Marsh, totally 45 km2. Due to field investigation and literature reference', planned natural wetlands construction lie in Lot Al, Lot A3 and Lot A5. The detail project area can be seen in ' Ningbo Cixi natural wetland research-Environmental Baseline Report, He Wen-shan, Lu Jian-jian; WB memoire; etc.  4*et~- -- Figure 1-1. And the present usage of Lot Al, Lot A3 and Lot A5 respectively is as follows: * Lot Al: Inning land; wetland nature reserve (413.3 ha) of Hangzhou Bay, Cixi City with the birds, animal and reptiles as protected subjects. * Lot A3: fish ponds, fixed fishing nets and simple house as fisherfolks' residence; fishing activities alongshore of Hangzhou Bay; * Lot A5: fish ponds, fixed fishing nets and simple wickiups as fisherfolks' residence; fishing activities on alluvion off shore. Constructed wetland covered north constructed wetland. The total area of North constructed wetland is 86ha, covering 26ha to the north of Jiutangjiang Wastewater Treatment Plant and 60ha at Bailu Lake. These constructed lands are Inning lands without any fishing and aquaculture activities. jA1 A3 BUFFER AREAS U ~ ~ ~ ~ ~ - --r _ eS -~~~~~~~ /, N x14 Figure 1-1 Sketch Map of Project Areas 1.3 Impacts on ProjectAreas Andong Town and Zhouxiang Town are involved in this project; the benefits of this project are as follows: > Create a bird wetland reserve that has tourism potential and recognized globally 2  > Promote the development of ecology tourism > Increase the assimilation capacity of non-drop pollution > Avoid excess fishing, so as to avoid extinguishment of some species > Promote sustainable development of Cixi socio-economy To realize the above objectives, fishing activities and aquiculture activities should be forbidden or controlled strictly in project areas, and which will affect culturists inevitably. In project areas, 114 households with 348 persons 2are affected in Andong Town and Zhouxiang Town. Among which, 54 households culturist with 168 persons are affected, and 2508.3 Mu aquiculture areas will be affected, among which 756.6 Mu are in Andong Town (525.6 Mu licensed, and 229 Mu unlicensed) and 1751.7 Mu are in Zhouxiang Town (1410.7 Mu is with license while 341 Mu is without license). Besides,the project will also affect 40 fishing households with 120 persons3, 50 fishing net households with 150 persons, and 40 fishing boats and 108109m fishing net (10 fishing boats, 42200m fishing net in Andong Town and 30 fishing boats, 65909m fishing net in Zhouxiang Town) will be affected as well. 1.4 Social and Economic Background in the ProjectArea Cixi is subordinate to Ningbo metropolis with 17 towns and 3 streets. According to Cixi City Gross Programming issued in Aug. 2003, the orientation of Cixi is famous industrial & commercial city of south Yangtze Delta and center city of north Ningbo metropolis. Andong Town is listed as a center in the north of Cixi City in city system programming with rapid socio-economy development in recent years. Cotton-planting is main agriculture, besides that there are still fruit tree plant, aquiculture and stockbreeding industries. As for industry, there are more than 780 enterprises in the whole town with machine, electrical appliance, knit goods, plastic electron and construction material as its stanchion industries. Besides, tertiary industry such as commercial industry, transportation and communication develops rapidly; entertainment industry and diet industry are in good state; advertisement service, information service and social service are also rising. Zhouxiang Town lies in the multi-face of Yuyao City, Shangyu City and Cixi 2 30 households and 90 persons are overlapped. 3About 80% fishing and fishing net household are overlapped. 3  City with convenient transportation. Rural economy achieves stable development in recent years. Large-scale and intensive farm produce is carried out and the energy of industry is powerful. The output value in two industry parks of west town and east town has reached billions Yuan with high-open in economy. Besides, tertiary industry such as finance service, freight service and community service develops rapidly. See detail in Table 1-1. Table 1-1 Socio-economic Situation of ProjectAreas Indicators Unit Cixi City An'dong Zhouxiang Town Town Total population (year-end) 10000 person 100.6 4.64 9.45 Among which: male 10000 person 50.34 2.31 4.69 Non-agricultural 10000 person 14.8 0.51 2.05 Natural growth rate of %0 ~0.93 0.09 -0.19 population Rural population 10000 person 85.57 4.55 10.93 Rural labor 10000 person 73.08 3.21 8.02 Among which: agricultural lab or Person _ 12786 21190 or Industry labor Person 9555 43250 Construction labor Person - 1940 2207 Gross Domestic Product 100 million Yuan 206.93 8.84 24.58 Among which: Primary Industry 100 million Yuan 16.84 1.01 2.39 Secondary Industry 100 million Yuan 120.66 5.53 15.89 Tertiary Industry 100 million Yuan 69.43 2.26 6.29 GDP Per Capita Yuan 20547 21487 33096 Irrigated area 10000 Mu 48.53 3.25 5.1 Cultivated Land Per Capita Mu 0.65 0.71 0.55 Government Revenue 100 million Yuan 26.6 - - Total Investment in Fixed 100 million Yuan 38.79 1.71 8.4 Assets Average Wage of Urban Yuan 20058 _ Employee Annual Net Income of Rural Yuan 6328 6001 6566 Residents Per Capita 1.5 Total Investment and Capital Source The total investment of the project is 59.558 million Yuan, which consists of capital given by GEF and Cixi Governmental corresponding funds. And the total budget for resettlement is RMB 4.86 million Yuan (8.1% of total investment) from counterpart funds. 4  I 5  2 Project Impacts From December 7, 2005 to December 20, 2005, with the requirement of WB, CCB and persons from affected towns organized a detail survey on project impacts and socio-economy conditions of affected culturists, and consulted with Cixi Water Resource Bureau (CXWRB) and Cixi Ocean and Fishery Bureau (CXOFB). Besides, from December 26, 2005 to December 28, 2005, an informal discussion was carried out by CCB, persons from involved towns and affected persons. Both door-to-door survey and interviews are adopted in investigation. It covers the acreage of aquiculture mudflat, family population, family income and expenditure, etc. In Feb. 2006, the CCB checked the project impacts again. The opinions from CXWRB, CXOFB, related TGs and affected persons have been considered and the income restoration plans have been consulted fully. 2.1 Affirmance of Mudflat Ownership Due to the Circular on Confirming the Access License of Mudflat by Cixi Peoples' Government and the Circular on the Opinions of Promoting Aquiculture Industry Further by Cixi Peoples' Government, mudflat and constructed wetland are possessed by nation and Cixi Peoples' Government performs the ownership. And each town government has the management right in its own appointed scope. Every unit or individual engaged in mudflat aquiculture should sign contract according to the law and obtain Cixi Mudflat Aquiculture License, which is validated by CXOFB once each year. Usually the contract period is three years. It is investigated that the contract period of aquiculture mudflat in Andong Town is from Nov, 1, 2004 to Dec. 3, 2007; and that in Zhouxiang Town is from Dec. 30, 2002 to Dec. 30, 2006. If there is no accident, the culturists will have priority of contracting the aquiculture mudflat at the expiration of the contract. 2.2 Project Impacts In project areas, 114 households with 348 persons4 are affected in Andong Town and Zhouxiang Town, among which 54 households culturist with 168 persons are affected. And 2508.3 Mu aquiculture areas are affected, among which 756.6 Mu are in Andong Town (525.6 Mu is licensed and 229 Mu is unlicensed) and 1751.7 Mu are in Zhouxiang Town (1410.7 Mu licensed, and 341 Mu unlicensed). The project will also affect 40 fishing households with 120 430 households and 90 persons are overlapped. 6  persons, 50 fishing net households with 150 persons5, and 40 fishing boats and 108109m fishing net (10 fishing boats, 42200m fishing net in Andong Town and 30 fishing boats, 65909m fishing net in Zhouxiang Town) will be affected as well. Besides, the income from beach pickers of 13villages with about 39199 persons around the mudflat will also be affected6. See detail in Table 2-1. Table 2-1 Condition of Affected Mudflat Aquiculture Culturist Fishing net Fishing Town____ household Person household Person household Person Andong 24 87 16 48 10 30 Zhouxiang 30 81 34 102 30 90 Total 54 168 50 150 40 120 The project will also affect fishing boats, fishing net, bamboo poles, temporary shed, etc. A total of 40 fishing boats and 108109m fishing net (10 fishing boats, 42200m fishing net in Andong Town and 30 fishing boats, 65909m fishing net in Zhouxiang Town) will be affected. See detail in Table 2-2. Table 2-2 Establishment of aquiculture affected by the project Town Fishing boats Fishing net Andong 10 42200 Zhouxiang 30 65909 Total 40 108109 2.3 Affected Persons To find out project impacts and basic condition of affected populations, a census on affected persons is carried out by CCB. 2.3.1 Family Population Characteristics E 1 D1 Basic Condition Among 54 households, 168 affected persons,, 158 persons are agriculture populations, accounting for 94.0% of the total affected populations; 76 persons are female, accounting for 45.2%; 123 persons are labors, accounting for 73.2%; 61 persons are female labors, accounting for 36.3%. See basic condition of affected populations in Table 2-3. 5 About 80% fishing and fishing net household are overlapped. 6 The affected populations are calculated by total population in coastal 13 villages. Due to socio-economic investigation, the beach comb is occasional, uncertain and flowing, so these villagers can go to pick in those mudflat which is not protected. Beside, the gain of beach comb is mostly eaten by villagers themselves and is not the main family income resource. 7  Table 2-3 Basic Condition of Affected Populations Town Total Agriculture Non- Female Labor Female population agriculture labor Andong 87 81 6 40 67 34 Zhouxiang 81 77 4 36 56 27 Total 168 158 10 76 123 61 Proportion 94.0% 6.0% 45.2% 73.2% 36.3% E 2W Distribution of Age Among 54 households, 168 affected persons, 5 persons are ranging from 0 to 6 years old, accounting for 3.0% of total population; 29 persons are ranging from 6 to 18 years old, accounting for 17.3% of total population; 96 persons are ranging from 18 to 45 years old, accounting for 57.1% of total population; 33 persons are ranging from 45 to 60 years old, accounting for 19.6% of total population; 5 persons are above 60 years old, accounting for 3.0% of total population. See detail in Table 2-4 and Figure 2-1. Table 2-4 Age Distributing of Affected Populations Total 0 to 6 6 to 18 18 to 45 Town .45 to 60 Above 60 population years old years old years old Andong 87 4 14 50 17 2 Zhouxiang 81 1 15 46 16 3 Total 168 5 29 96 33 5 0 C 6 years old 3.0% S6 18 years 45 j 60 Abov 60 old 19.6/ 3.0% 17.3 0 O 6 years old * 6 18 years old o 18 n] 45 years old 18 w 45 years o 45 C 60 old [ Abow 60 57.1% Figure 2-1 Age Distributing of Affected Populations L] 3D Level of Education Among 168 affected persons, there is no illiterate; 5 persons are too young to go to school, accounting for 3.0% of total population; 84 persons got elementary school education, accounting for 50.0% of total population; 55 8  persons got junior high school education, accounting for 32.7% of total population; 20 persons got senior high school education, accounting for 11.7% of total population; 4 persons got junior college education or above, accounting for 2.4% of total population. See detail in Table 2-5 and Figure 2-2. Table 2-5 Education Condition of Affected Populations Junior Senior Junior Town Total Children Illiterate Elementary high high college population school and school school abv above Andong 87 4 0 35 38 9 1 Zhouxiang 81 1 0 49 17 11 3 Total 168 5 0 84 55 20 4 Junior college and above 2 .4% ,hildren Senior high 3.0% school Illiterate a Children 11.9% 0.0% * Illiterate r _ Jr o~~~~~~ Elementaryv school Junior hig Elementary school school 03 Junior high school 32.7% 50.0% * Senior high school a Junior college and above Figure 2-2 Education Proportion of Affected Populations ] 4n Employment Structure Among 168 affected persons, 109 persons are engaged in agriculture work or mudflat aquiculture, accounting for 66.5% of the total affected populations; 13 persons work in enterprises, accounting for 7.9%; 5 persons don't work in local, accounting for 3.0%; 37 persons are students, accounting for 22.8%. See detail in Table 2-6 and Figure 2-3. Table 2-6 Employment Condition of Affected Populations Total Agriculture/ Town_____ population mudflat aquiculture Enterprise Work outside Student Andong 87 52 12 3 16 Zhouxiang 81 57 1 2 21 Total 168 109 13 5 37 9  Student 0 Agriculture/ mudflat 22.6% aquiculture Work outside a Enterpdrise 3.0% 3griculture/ o Work outside Enterpris s W mudflat 7.9% aquiculture 0 Student 66.5% Figure 2-3 Employment Structure of Affected Populations From field investigation, those who are engaged in agriculture work or mudflat aquiculture are 45 years old or so with primary school education or junior high school education. 2.3.2 Production Condition and Habitation Condition Besides contracted mudflat, the affected households also have contracted lands in their villages. It is investigated that the average contracted land acreage of affected households is 3.9 Mu per household in Andong Town, and 2.4 Mu per household in Zhouxiang Town. And these lands are cultivated extensively at present, planting vegetables with mustard as main type. And the annual income per Mu is about 1600 Yuan. Among those affected households, the acreage of living per household is 131.4m2 in Andong Town, and that in Zhouxiang Town is 111.Om2 for one family. Most of the houses are brick and beton structure. See details in Table 2-7. 10  Table 2-7 Production Condition and Habitation Condition of Affected Persons Land resource Living acreage House- Dry Sub- Mu/ Brick & Brick & Simple Sub- m2 Town hold land Vegetable plot (Muad total house- Beton Timber structure total house- (Mu) (MU) plot (MU) (Mu) hold (m2) (m2) (m ) (m2) hold Andong 24 24 44.6 24.7 93.3 3.9 2809.1 210 135 3154.1 131.4 Zhouxiang 30 71.9 0 0 71.9 2.4 3330 0 0 3330 111.0 Total 54 95.9 44.6 24.7 165.2 3.1 6139.1 210 135 6484.1 120.1 II  The affected households have 1.2 sets of color TV, 0.7 refrigerator, 0.8 washing machine, 0.1 air condition, 0.9 telephone, 1.2 cell phones and 1.1 auto bikes on average. This means the affected culturists have had some possessions and with living standard. See detail in Table 2-8. Table 2-8 Durable Consumer Goods of Affected Households Color Washing Air Cell Auto Town TV (set) machine condition (set) phone bike (set) (set) (set) (set) (set) Andong 35 10 17 6 25 32 28 Zhouxiang 30 27 26 2 23 35 31 Total 65 37 43 8 48 67 59 per 1.2 0.7 0.8 0.1 0.9 1.2 1.1 household 2.3.3 Income Analysis According to investigation, family annual gross income of affected households is 35265.7 Yuan in 2005, among which mudflat aquiculture income accounts for 69.1%7. So the acquisition of mudflat has great impacts on culturists' income. See details in Table 2-9. Table 2-9 Income Impacts Analysis Item Unit Andong Zhouxiang Total Proportion 1.Sideline Yuan 504900.0 1139346.0 1644246.0 86.3% income Incl. Aquiculture Yuan 403920.0 911476.8 1315396.8 69.1% income 2. Wages Yuan 99000.0 6000.0 105000.0 5.5% income 3. Work income Yuan 70800.0 4200.0 75000.0 3.9% 4. Other income Yuan 42900.0 37200.0 80100.0 4.2% 5. total income Yuan 717600.0 1186746.0 1904346.0 100.0% 6. per h. seh yuan/household 29900.0 39558.2 35265.7 / householdlllll 2.3.4 Expenditure Analysis According to the investigation, the total family expenditure of affected Mudflat aquiculture is limited by the natural condition, such as water quality, weather. Due to investigation, the typhoons usually cause the establishment damage or aquiculture escaped. Therefore, the culturists face a great risk of losing income and suffer from a serious income loss in 2-3 years. 12  households is 1495508 Yuan in 2005, among which, productive expenditure is 536249 yuan, accounting for 35.9%, the expenditure for consumption is 959259 yuan, accounting for 64.1%. The details are shown in Table 2-10. Table 2-10 Expenditure analysis. Item Unit 221529 314720 536249 35.9% 1. Productive Yuan 11903.5 5127.5 17031 1.1% Expenditure Taxes and fees Yuan 157185 228060 385245 25.8% Seeds Yuan 14910 23940 38850 2.6% feedstuff Yuan 45654 58520 104174 7.0% charges for Yuan 3780 4200 7980 0.5% machines work other expenditure Yuan 394989 564270 959259 64.1% 2. Expenditure for Yuan 8064 13090 21154 1.4% consumption Electricity Yuan 2821 6370 9191 0.6% water Yuan 26880 32620 59500 4.0% communication Yuan 39550 171850 211400 14.1% Education and Yuan 46060 7000 53060 3.5% entertainment medical treatment Yuan 20069 13440 33509 2.2% fuel Yuan 194460 228200 422660 28.3% non-staple food Yuan 57085 91700 148785 9.9% other expenditure Yuan 616518 878990 1495508 100.0% 3. total Yuan 25688.3 29299.7 27694.6 4. per household yuan/hous 221529 314720 536249 35.9% ehold 2.3.5 Income and Expenditure Comprehensive Analysis In 2005, the net income per household of affected culturists is 25335.1 yuan. The net income per household in Andong town is 20669.6 yuan and 29067.5 yuan in Zhouxiang town. The details are shown in table 2-11. Table 2-11 the comprehensive analysis on income and expenditure Item Unit Andong Zhouxiang Total 1. Total income Yuan 717600.0 1186746.0 1904346.0 incl. Aquiculture income Yuan 403920.0 911476.8 1315396.8 2. total expenditure Yuan 616518 878990 1495508 Productive Yuan 221529 314720 536249 Expenditure ___I_I__ 13  Item Unit Andong Zhouxiang Total Expenditure for Expenditur for Yuan 394989 564270 959259 consumption 3. Net income Yuan 496071.0 872026 1368097 4. Net income per Yuan/ household househod .20669.6 29067.5 25335.1 h ouseh old household 2.3.6 The will of Resettlement > This project is an important project in Cixi, which is in favor of economy sustainable development of Cixi City. And the offspring can benefit from this project. It is supported, but to maintain income level, employment should be changed; > As for the land-using time of the project, it should be noticed as early as possible due to it has direct impacts on culturists' investment on aquiculture; > The best choice is to use aquiculture land after the expiration of contract; > The land can be adjusted to arrange the APs to plant economic crops such as vegetables. > The important problem needing to solve by APs is employment and income source; > The compensation for aquiculture establishments should be in cash form; > Government should offer employment information and skill training before working. 14  3 Policy Framework and Compensation Rate 3.1 Laws and Policies Referred in Resettlement State Laws and Regulations > The LandAdministration Law of PR.C. (revised in August 28, 2004) > FisheryLawofPR.C. (revised inAugust28, 2004) > Administration Measures of Maritime Space Use of PR.C. (be effective in January 1, 2002) Local Laws And Regulations > Administration Measure of Cixi Water Area Mudflat Aquiculture License (Try Out Draft) (CZF[2002]No.78) (be effective in Dec. 15, 2002) > the Circular on the Opinions of Promoting Aquiculture Industry Further by Cixi Peoples' Govemment (CZ[1 998]No. 15) WB Policy > World Bank OP4.12 Involuntary Resettlement and Appendix (January 1 st 2002) > World Bank BP4.12 Involuntary Resettlement and Appendix (January 1 st 2002) 3.2 Laws and Policy Items Involved in Resettlement 3.2.1 Relative Regulations from The LandAdministration Law of PR.C. Article 11 ... the confirmation of ownership and use right of woodland and grassland should conform to Forest Law Of P.R.C. and Grassland Law of PR.C. respectively; and the confirmation of use right of water surface and mudflat should conform to Fishery Law Of P.R. C.. 3.2.2 Relative Regulations from Fishery Law Of PR.C Article 10 State-owned enterprises, collection-owned enterprises and individuals are encouraged to use water areas and mudflat suitable for aquiculture to develop aquiculture. Article 11 The utilization of water areas are programmed as a whole by nation, and the water areas and mudflat used for aquiculture are also affirmed 15  by nation. Units and individuals, who want to use state-owned water areas and mudflats affirmed as aquiculture use by nation, should apply to fishery administrative department above county government level. The aquiculture license, which empowers to use appointed water areas and mudflat for aquiculture, is approved and issued by people's government of same level. The detail methods of approving and issuing license are regulated by State Council. Collective-owned or state-owned water area and mudflat used by village collective economy organization can be contracted by individuals or collectives for aquiculture. Article 12 Local fishers have priority when peoples' government above county level is approving and issuing aquiculture license. Article 13 If dispute occurs when disputing parties conduct aquiculture by using state-owned water areas and mudflats affirmed as aquiculture use by nation, it should be treated with certain procedure according to relative laws. Both parties are forbidden to destroy aquiculture production before the solving of dispute. Article 14 If collective-owned water areas and mudflat are acquired by nation construction, it should confirm to The LandAdministration Lawof P.R.C. 3.2.3 Relative Regulations from Administration Measures of Maritime Space Use of PR.C. Article 2 The maritime space in this law refers to the water surface, water body, seabed and subsoil of inland water and territorial sea of P.R.C.... Article 3 Maritime space is possessed by nation, and State Council performs the property right. Any unit or individual have no rights to invade and occupy, trade or transfer maritime space. Any unit and individual should obtain the access before using maritime space. Article 16 Units and individuals who want to use maritime space should apply to local ocean administrative department above county government level. When applying for maritime space use, the following materials should be handed in written form. (1) Requisition for maritime-space-using; 16  (2) Reasoning materials for maritime-space-using; (3) Relative certificates on assets and credit; (4) Other written materials regulated in laws or regulations. Article 17 Ocean administrative department above county government level is to examine and verify application for maritime space using according to the function division. And then reports the application to peoples' government owning approval right according to this law and related regulations issued by peoples' government of province, autonomous region and municipality directly under the Central Government. When ocean administrative department is examining and verifying application for maritime space using, the opinions from related departments of same level should be considered. Article 18 Approval shall be obtained from the State Council for using maritime space of the following: (1) More than 50 hectares of maritime space will be filled in project ocean-using; (2) More than 100 hectares of maritime space will be enclosed in project ocean-using; (3) Ocean use exceeds 700 hectares of maritime space without changing the nature attributes. (4) Ocean use in national important projects; (5) Ocean use in other projects regulated by State Council. Besides the project regulated in above article, the approval popedom of ocean use is authorized to peoples' government of province, autonomous region and municipality directly under the Central Government by State Council. Article 19 After the approval of application, ocean administrative department of State Council shall make liber and issue access certificate to applicant if the ocean use is approved by State Council. So does the local peoples' government. The applicant has the access to use maritime space since the access certificate is received. Article 25 Time limit of maritime space use should be decided by following regulations: 17  (1) Fifteen years if for aquiculture; (2) Twenty years if for boats dismantlement; (3) Twenty-five years if for tourism and entertainment; (4) Thirty years if for salt industry and mining; (5) Forty years if for commonweal project; (6) Fifty years if for port construction or dockyard construction. Article 30 Peoples' government issuing access certificate formerly may take back the access with the demand of commonality benefits or nation security. If access certificate is taken back before expiration according to the above article, corresponding compensation should be paid to maritime space user. Article 33 Maritime space is used with pay. Units and individuals using maritime space should hand in use rent, which is regulated by State Council and handed over to finance. Article 36 According to the regulations issued by finance department and ocean administrative department of State Council, rent for following projects maritime-space-using can be reduced or exempted if checkup and approved by peoples' government and ocean administrative department, who have the authorization right. (1) For public service use; (2) For national important project construction use; (3) For aquiculture use. 3.2.4 Relative Regulations from Administration Measure of Cixi Water Area Mudflat Aquiculture License (Try Out Draft) Article I All units and individuals, who are engaged in aquiculture by using mudflat in water areas with Cixi administerial region, must apply for Cixi MudflatAquiculture Licensel shortened as Aquiculture LicenseI according to this Measure.... Article 3 Aquiculture License is the legal certificate for culturists to carry out aquiculture activities on mudflat. The legal rights and interests of culturists' with licenses are protected by law. And the culturists with licenses can enjoy 18  favorable policies regulated by government. Article 4 Cixi Peoples' Government is in charge of Aquiculture License; fishery administrative department is responsible for the approval and issue of Aquiculture License and is responsible for the management of aquiculture industry. Article 10 The useful-life of Aquiculture License is as follows: (1) 3 years for seawater pond, freshwater pond, mudflat, reservoir and aquiculture areas; (2) As for river ways with functions of control floods, drain floods and adjust water reserve, temporary aquiculture license with one-year-useful-life can be issued at the premise of ensure its normal functions. Article 15 The expiration, discontinuance and invalidation of Aquiculture License. (2) Discontinuance. Department issuing aquiculture license can take back the license with the demand of commonality benefits, and corresponding compensation should be paid to maritime space user. 3.2.5 Relative Regulations from the Circular on the Opinions of Promoting Aquiculture Industry Further by Cixi Peoples' Government 11 Stabilize and improve contract policy, and to promote the development of aquiculture in scope and depth 2. Improve mudflat management methods. Mudflat is possessed by nation; Cixi Peoples' Government performs the ownership; and each town government has the management right in its own appointed scope. At the premise of meet the demand of nation construction and obey Cixi ocean mudflat programming, approved units or individuals have the operation rights of mudflat aquiculture. 3.2.6 WB Policy on Involuntary Resettlement 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 impacts covered in para. 3(a) of this policy, 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 19  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. For impacts covered in para. 3(b) of this policy, the measures to assist the displaced persons are implemented in accordance with the plan of action as part of the project. 15. Criteria for Eligibility. Displaced persons may be classified in one of the following three groups: those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); 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; those who have no recognizable legal right or claim to the land they are occupying. 3.3 Resettlement Policies of the Project and Compensation Rate8 As for this project, all relative policies & regulations, qualification standard of beneficiary, assets appraise standard and compensation standard can't be changed without WB permission. 3.3.1 Resettlement Policies Due to the above policy framework, the objective of resettlement is to avoid or mitigate negative impacts if possible. The possession of affected persons' should be compensated at replacement cost; and assistant should be provided to affected persons to ensure sufficient opportunities to restore or exceed formal living standard. Resettlement policies in this project are as follows: ) Announce in Advance The contents of announce should include project name, construction components, the movement date, implementation time, etc. One year before the project construction, propaganda should be done in the forms of TV, broadcast, newspaper, Web, notice, etc. And the town government of affected towns and each affected culturist should be informed by open letter or notice, so as to obtain their understanding and support and to minimum the loss of culturists. The policy is only adapted for Cixi natural wetland project. 20  > Reasonable Compensation Cash compensation will be paid to culturists on considering the aquiculture season, business income, pond-digging time, investment, and so on. > Other Subsidy Measures (1 )The contract fee will not be collected since the issue of announce (2) CCB will offer 2-3 times employment information jointly with labor department, and offer the culturists with 2-3 days skill training at the premise that the affected culturists are voluntary from the begin of the project, which is help to income restoration. (3)Culturists can take part in the insurance according to their will 3.3.2 Compensation Rate (1)Compensation for Mudflat Aquiculture After the implementation of this project, the culturists will lose access of mudflat, which will destroy their business income. So, one-off compensation should be given. Due to the information and documents provided by CXWRB, CXOFB and related town governments and field investigation, compensation rate is decided on consulting with affected culturists. Time of announce, aquiculture establishments investment (such as pond-digging, water gates, sheds, fishing nets, bamboo poles, etc. ) and income loss have been taken into consideration in this compensation rate. The compensation rate for unlicensed aquiculture is one third of those licensed or the same as licensed one after handing on related fees for license. See detail in Table 3-1. Additional bounty of 1 50yuan per mu will be provided to those APs who move out mudflat before the deadline in announcement. Table 3-1 Compensation Rate for Mudflat Acquisition Time of announce Compensation rate for those with aquiculture license (Yuan/Mu) When announcement is issued one year, the project is implemented and contracts 750 are valid When announcement is issued one year, the project is implemented and contracts 150 are invalid 21  Table 3-2 Related Administration Fee Related Fee Rate (Yuan/Mu) 1. MudflatAquiculture Administration Fee 10OYuan/Year.Mu Contract Fee 20 Yuan/Year. Mu Mudflat-using Fee 20 Yuan/Year. Mu 2. Fishing & Fishing Net Fishing License (due to size and horsepower of fisher) 400-600Yuan/Year Administration Fee of Fishing (due to scale) 200-400 Yuan/Year Annual Inspection Fee of Fishing 100-200YuanNear (due to scale) 3. Other Tax and Fees Set by Government 100-200 Yuan/Year (2) Compensation for Fishing boat and Fishing net 40 fishing boats and 108109m fishing net will be affected. According to the investigation and consulting with APs, the fishing boats and fishing net will be compensated at replacement cost. The compensation rate for establishment can be seen in Table 3-39: Table 3-3 Compensation Rate for Fishing boat and Fishing net Establishment Compensation rate 1. Fishing boat 20-30 Ton 16000-30000Yuan/ Fisher 10-20 Ton 5000-16000 Yuan/ Fisher Below 10 Ton 2000-5000 Yuan/ Fisher 2. Fishing net 5.5Yuan/M Note: most fishing boats are woodiness while the woodiness fisher manufactories build the boats for fisher folks according to their requests without perennial production. So the price is the prime price for reference. 16150 Yuan is evaluated per boat when budget. As for the unlicensed fishing boats, they are compensated at the rate of licensed fishing boats after handing related fees listed in Table 3-2. (3) Beach Picker Due to the beach Picker, the beach picking is occasional, uncertain and flowing, it is difficult to determine the objects of beach comb. After consultation with impacted villagers, the compensation for beach picker is at 12% of total fee, which is allocated to village according to the populations. Among implementation, the use of this compensation is determined by villagers themselves with consultation. 9The compensation is calculated on the basis of different quality of fishing boats and the boats capacity. As for unlicensed boats, they are compensated at the rate of licensed fishing boats after handing related fees, induding administration fee of 1 OOYuan/Mu yearly, contract fee of 20 Yuan/Mu yearly and mudflat using fee of 20 Yuan/Mu yearly. 22  3.4 Entitlement Matrix Table 3-4 Entitlement Matrix Types of DPs Resettlement policy Compensation Rate affected With aquiculture license: + When announcement is issued one year, the project is implemented and contracts are valid: 750 Yuan/Mu