Successful reservoir resettlement in China - Shuikou Hydroelectric Project

21248 April 2000 eas, t t4si vrom"ent *.n eia.ev4opii- Z4 EASES Discussion Paper Series SUCCESSFUL RESERVOIR RESETTLEMENT IN CHINA SHUIKOU HYDROELECTRIC PROJECT Youcuan Zhu, Martin ter Woort and Barry Trembath   ii CONTENTS Foreword ................... iv Abstract ....................v Acknowledgments ........................ vi Abbreviations and Acronyms .................... vii 1. Introduction . Background . Project Description .2 Scope of Resettlement Impacts .2 Overview of Resettlement Planning and Implementation .3 2. Legal and Resettlement Policies Framework .5 Legal Framework .5 3. Resettlement Planning .10 Organization .10 Basic Principles and Compensation Standards for the Shuikou Project .10 Planning Process .12 Community Involvement in Planning .12 Economic Rehabilitation Plan .13 Physical Relocation Plan .14 Compensation Standards .16 Cost Estimates .17 Implementation Schedule .18 4. Resettlement Implementation .20 Overview .20 Institutional Aspects .20 Other Government Measures .22 Physical Relocation Activities .23 Economic Rehabilitation Activities .26 Village .32 Yangwei .32 Sanlian .32 Meixiong .32 Social Rehabilitation .35 Financial Aspects .35  iii 5. Monitoring and Evaluation ......................... 38 Internal Monitoring ......................... 38 External Monitoring and Evaluation ......................... 38 Methodology ......................... 39 6. Outcomes ......................... 41 Housing ......................... 41 Community Facilities ......................... 41 Job Creation ......................... 42 Investment ......................... 43 Restoration of Incomes ......................... 44 Resettler Satisfaction ......................... 47 7. Analysis and Conclusions ......................... 48 Annex A: Statistics ..53 Map: IBRD 29025  iv FOREWORD Large-scale resettlement for dam and reservoir construction is a difficult business. Thus examples where resettlement has been successfully carried out, and where this claim can be backed up quantitatively, are relatively rare. The Shuikou project is one such example, partly due to the extensive documentation available, including the reports of an independent evaluation instituted early in the implementation phase and carried through to completion. This report attempts to record the resettlement process at Shuikou through planning, design, implementation and post-construction phases. A detailed review of outcomes is followed by an attempt to explain the reasons for its success. These are evidently many and varied, ranging from responsible policies from central and provincial governments to a strong resettlement organization and not least to a constructive attitude by individual affected families. Clearly, a number of things fell into place at the right time, underscoring the point that successful resettlement requires a complex, varied set of actions and responses, and sensitivity to broader economic trends. Zafer Ecevit, Director Environment and Social Development Sector Unit East Asia and Pacific Region The World Bank   v ABSTRACT This paper records the involuntary resettlement experience associated with the construction of the Shuikou Damn and Reservoir Project in Fujian Province. The project used two World Bank loans: the first, for S140 million, was approved in 1987; the second, for $100 million, was approved in 1992. The reservoir created by the project has an area of 94 square kilometers, caused the relocation of 67,239 persons in rural areas and 17,215 persons in Nanping City. The physical relocation was carried out between 1988 and 1993. The economic rehabilitation of the affected households took another five years. By the end of 1997, 38,439 jobs had been created for the rural population, while for Nanping, no job creation was required, as people were able to continue their old jobs after relocation. Of the rural jobs, 52 percent involved nonfarm or nonland-based activities. The resettlement was instrumental in speeding up a transition out of traditional agriculture. The resettlement expenditures, at $14,000 per household, are among the highest recorded in China for a project of this type, a major factor in its success. Other success factors detailed in this report include the responsive policies of the central and provincial governments; a comprehensive institutional framework for the planning and implementation of the resettlement; the involvement of the affected village populations in identifying economic opportunities and implementing these; the willingness of the affected households to take the opportunity to supplement compensation for housing with additional investments to construct houses far superior to those replaced; the sensitivity of the implementation approach, which allowed for changes as circumstances warranted; and the independent evaluation of resettlement. Early on in project supervision, the World Bank initiated an Independent Evaluation of Resettlement. This evaluation, carried out by the East China Investigation and Design Institute (the design institute that also prepared the original resettlement plan in 1983), took place annually over a five-year period (1992 to 1996) and involved samples of 524 households and 35 villages. The annual reports of the evaluation proved particularly valuable in providing the Fujian Provincial Electric Power Bureau, the Shuikou Reservoir Resettlement Office and the World Bank with regular feedback as to achievements and outstanding problems. The evaluation was the first of its kind in China, and has since been replicated elsewhere. The resettlement was subsequently assessed by the Bank's Operations Evaluation Department that concluded in 1998: "The Shuikou resettlement has generally been successful in generating sufficient employment and restoring the incomes and livelihoods of resettlers." Nonetheless, this report also records how the resettlement could have been planned and implemented better.  vi ACKNOWLEDGMENTS The authors would like to gratefully acknowledge contributions from the many individuals, too numerous to name, who provided assistance in preparation of this paper. Particular thanks go to: Mr. Ren Zijhong and Mr. Huang Jincai, former and current Deputy Directors of the Fujian Provincial Power Bureau; Mr. Sheng Ping, Deputy Director, Mr. Wang Ching Hua, Relocation Specialist and Mr. Lin Cheng Ji, Production Specialist from the Shuikou Reservoir Resettlement Office; 'Mr. Guo Han, Vice Chief Engineer and Mr. Gong Heping, Socioeconomic Specialist of East China Investigation and Design Institute; and Mr. Zhang Jijun, Chief of Reservoir Division of the Design Institute for Hydroelectric Power of State Power Corporation who kindly peer reviewed the paper.  vii ABBREVIATIONS AND ACRONYMS ECIDI East China Investigation and Design Institute FPEPB Fujian Provincial Electric Power Bureau FPG Fujian Provincial Government ha Hectare IER Independent Evaluation of Resettlement km Kilometer km2 Square kilometer kW Kilowatt m Meter m2 Square meter MWR Ministry of Water Resources MWREP Ministry of Water Resources and Electric Power OED Operations Evaluation Department SPC State Planning Commission SRRO Shuikou Reservoir Resettlement Office TVE Township and Village Enterprise   Section 1. Introduction I 1. INTRODUCTION Background In the 1994 Bankwide review of projects involving involuntary resettlement' the Shuikou Hydroelectric Power Project in China is cited as a good example of providing adequate compensation and rehabilitation for project-affected people. However, there has been little published in relation to Shuikou resettlement, nor for that matter the detailed process of reservoir resettlement in China.2 This report, prepared in conjunction with the overall Implementation Completion Report for the project, aims to overcome that deficiency by providing a detailed account of the Shuikou resettlement planning and implementation within the context of the Chinese legal, regulatory and institutional framework. The report is informational rather than analytical and is complemented by a recently issued Operations Evaluation Department (OED) report containing a case study on Shuikou, which has an analytical orientation.3 The Bank helped finance the construction of the Shuikou dam and power plant through two project loans,4 which extended over the full construction period 1987 to 1997. The report was drafted by the team responsible for appraisal and supervision of the second project,5 pnrmarily based on information collected during resettlement supervision missions since 1992, World Bank documents such as the staff appraisal reports for the two projects6 and documents prepared by the responsible local agencies.7 These were Fujian Provincial Electric Power Bureau (FPEPB), the project owner and executing The World Bank, 1994, Resettlement and Development: The Bankwide Review of Projects Involving Resettlement 1986-93. 2 A comprehensive overview of Chinese resettlement, rural and urban, was provided in "China Involuntary Resettlement," World Bank Report No. 11641 -CHA, 1993. 3 The World Bank, 1998, Operations Evaluations Department (OED), Early Experience with Involuntary Resettlement: A Follow-up. 4 IBRD No. 2775-CHA ($140 million) and IBRD No. 3515-CHA ($100 million). 5 Youxuan Zhu and Martin ter Woort (resettlement consultants) and Barry Trembath, Task Manager. 6 The World Bank, 1986, Staff Appraisal Report: "China: Shuikou Hydroelectric Project" (Report No. 6189-CHA), and The World Bank, 1992, Staff Appraisal Report: "China: Second Shuikou Hydroelectric Project" (Report No. 106 1O-CHA). 7 Fujian Provincial Shuikou Hydroelectric Power Project Resettlement Planning Team, 1983 (Shuikou Planning Team), "Shuikou Reservoir Resettlement Plan." Shuikou Reservoir Resettlement Office (SRRO), 1994, 1995, 1997, "Comprehensive Report on Shuikou Reservoir Resettlement (1987-93), (1987-95) and (1987-96)," and East China Investigation and Design Institute (ECIDI), 1993-97, "Independent Resettlement Evaluation for Shuikou Reservoir" (Reports No. 1-9).  2 Section 1. Introduction agency, the Shuikou Reservoir Resettlement Office (SRRO), responsible for resettlement implementation, and the East China Investigation and Design Institute (ECIDI), involved with the project design, resettlement planning and independent evaluation of Shuikou resettlement implementation. Project Description The Shuikou dam and hydroelectric power plant is located in Minqing County, Fujian Province, in the middle reaches of the Min River (Minjiang). The project site is 94 kilometers (km) downstream from Nanping City and 84 km upstream of Fuzhou, the provincial capital. The reservoir catchment area exceeds 52,000 square kilometers (kmn2) or 86 percent of that of the Minjiang basin. The effective reservoir capacity is 2.34 billion cubic meters (m3) at the normal full supply level of El. 65 meters (m). The main purpose of the Shuikou project is power generation. The total installed capacity is 1,400 megawatts (MW) (in seven generating units), making it the largest hydroelectric plant in the East China Region. The average annual energy generated is 4,950 gigawatt-hours (GWh). In addition to power generation, the project also includes a shiplock and shiplift to maintain navigational capability through the dam site area and to capitalize on the improved navigational potential created by the reservoir and the regulated river downstream of the dam. The Shuikou project was approved by the State Planning Commission (SPC) in 1985 and construction started in March 1987. The impoundment of the reservoir took place six years later, in March 1993. The first generating unit was commissioned in July 1993 and all seven units were in operation by December 1996. Scope of Resettlement Impacts The Shuikou reservoir, with 94 krM2 of water surface and a length of 96 km, inundates about 44,000 mu' of farmland, some 25,000 mu of forest, and about 2.8 million square meters (mi2) of housing. Some 67,000 persons were displaced, involving 3 counties (Gutian, Youxi and Minqing), 1 city (Nanping), 16 towns or townships, 89 administrative villages and 147 village groups. In addition, some 7,000 mu of farmland were acquired around the reservoir for resettling displaced people. The reservoir also inundated a range of infrastructure facilities in the region, including 448 km of county roads and 65 km of railway. Table 1 provides the inundation figures for the whole reservoir area. These figures do not include earlier resettlement at the dam site and access roads, which required 253 ha of land acquisition and resettlement of 187 households. A map (IBRD 29025) showing the reservoir area is annexed to this report. 8 15 mu = 1 hectare (ha).  Section 1. Introduction 3 Table 1: Overall Inundation Impacts Items Unit Nanping Gutian Youxi Minqing Total Townships 8 2 2 4 16 Towns 3 2 2 1 8 Villages 51 18 9 11 89 Groups 74 45 15 13 147 Persons 39,960 19,806 6,375 1,598 67,239 Orchard and Forest mu 5,090 12,902 2,206 3,485 23,683 Farmland mu 23,770 13,541 4,358 1,172 42,841 Housing 1,000 m2 1,470 360 360 80 2,770 County Roads km 22B 145 51 24 448 Land for Resettlement mu 4,145 2,003 661 166 6,975 Excludes Nanping Urban Renewal Project. Source: Shuikou Reservoir Resettlement Office (SRRO): "A Comprehensive Report on Resettlement of Shuikou Reservoir Area (1987-95)", p. 8. In addition to the above, there was substantial urban resettlement in Nanping City necessitated by the decision to improve the flood protection security of Nanping City by building a 7.7 km-long dike along the riverfront. While this decision was precipitated by the fact that the Shuikou reservoir backwater would exacerbate an already unacceptable risk of flooding along the waterfront, the solution that evolved went beyond simple flood protection to include major urban renewal. The renewal project involved resettlement of some 17,000 urban residents. Overview of Resettlement Planning and Implementation Initial resettlement planning was carried out in the period 1982-83 in the context of an emerging legal and regulatory framework, with major national regulations being issued in 1982 and provincial regulations in 1984. Based on these regulations, a set of principles was developed that defined the strategy of Shuikou resettlement. The main features of this strategy included minimizing moving distance, so that displaced people could be resettled within the same village or township; avoiding major changes of their current occupations after relocation; and maintaining as far as possible the existing social fabric within the villages. The detailed resettlement plan, developed within these principles, focused on restoration of income level and living standard and was very much oriented to agriculture-based rehabilitation. Some three quarters of those displaced were to be offered land-based resettlement, with activities ranging from growing grain and vegetables, to planting and managing fruit trees and timber trees. Nonfarm activities were planned for one quarter of those affected. Implementation commenced in 1987 and coincided with a period of rapid regional economic development in Fujian Province, largely attributable to its coastal location and close ties to foreign and Taiwanese investors. Between 1987 and 1997, gross domestic product grew at an average rate of 15.9 percent in real terms. Net rural incomes also increased at an average rate of 8.1 percent after deducting an inflation rate averaging 10.2 percent a year. The initial effects of this rapidly expanding inflationary environment were  4 Section 1. Introduction negative in that resettlement budgets were quickly rendered inadequate through inflation. However, eventually the rapid economic growth and associated increased employment opportunities greatly facilitated the economic rehabilitation for Shuikou reservoir resettlers. The early focus of implementation was on physical relocation. Most of the relocation took place in 1991 and 1992, with more than 60 percent of the people being moved in these two years. By the summer of 1993 when the reservoir began filling, most physical relocation activities were completed. Economic rehabilitation gained momentum over the later years, such that by the end of 1993 almost 30,000 jobs had been created, accounting for 88 percent of those required. However, during implementation the strategy of mainly agricultural-based rehabilitation was modified considerably in response to changing circumstances. Of the 38,439 jobs created by the end of June 1997, some 52 percent of them involved nonfarm or nonland-based activities. By the end of 1994, the average income level of the resettlers, after allowing for inflation, had already exceeded the before-moving level by 3.8 percent; and by the end of 1995, the last year of detailed surveys, by 14.5 percent. Less detailed "village-level" surveys indicated a further increase of 26.6 percent in 1996. The following sections of the report will elaborate on the resettlement process, commencing with a description of the legal and regulatory framework, progressing through the planning and implementation processes to a detailed presentation of outcomes.  Section 2. Legal and Resettlement Policies Framework 5 2. LEGAL AND RESETTLEMENT POLICIES FRAMEWORK Legal Framework Shuikou resettlement planning was carried out in the period 1982 and 1983 in the context of an emerging legal and regulatory framework for land requisition and resettlement in China. Over this period developments included adoption of a new constitution redefining land ownership, issue of national and provincial regulations concerning land requisition, issue of draft supplementary provisions on land acquisition and resettlement for water resource development projects, and issue of draft specifications detailing the design and implementation of resettlement programs for water conservation and hydropower projects. Land Tenure (Ownership). In accordance with the 1982 constitution, China is a country operating under the socialist economic system on the basis of public ownership: "the ownership by the whole people" and "collective ownership by the working people" (Article 6). According to the constitution, urban land9 belongs to the State (whole people), while rural land is owned by collectives,'0 except those areas stipulated by law as State land (Article 10). These provisions formed the basis of the 1986 Land Administration Law," which also included detailed provisions on land usage. Under these provisions both State- and collective-owned land may be allocated to be used by individuals for their own use. The use and management of rural land may also be contracted to collectives or individuals. In both cases, individuals and collectives have the responsibility for protecting and managing the land and making rational use of it in accordance with the terms of the allocation or contract. Because of the nature of collective ownership, a village losing some land through State requisition is able to redistribute its remaining landholdings among village members so that none will be left 9 Land in built-up areas and areas zoned for urban development except those for agriculture purposes within the area concerned. 0 Under the Chinese administrative system, governments down to county level are considered to be part of the Chinese government. Below the national level are those at the provincial level (and autonomous regions and large municipalities such as Beijing and Shanghai). Below the provincial level are municipalities that are further divided into counties in rural areas and districts in urban areas. Below the county level, governments are considered to be representatives of collectives, which formerly were organized into communes, now referred to as "townships" and brigades, which are now referred to as administrative "villages," which may in turn be made up of a number of natural villages, referred to in this paper as "groups." 1 Land Administration Law of the People's Republic of China (promulgated June 25, 1986, effective January 1, 1987). Although this law postdates Shuikou resettlement planning (but not implementation), it formalizes the situation with respect to land usage that existed during the planning period, generally referred to as the "contract responsibility system."  6 Section 2. Legal and Resettlement Policies Framework without land to farm. The ability to redistribute remaining land resources among villages greatly facilitates the resettlement process in China. Land Acquisition. National land requisition regulations were also issued in 1982.12 These regulations affirm the right of the State to requisition land from collectives for construction, and define the procedures for land requisition and resettlement and the responsibilities of the parties. Compensation rates for cultivated land are specified to be within the range of three to six times the average annual output value in the past three years. Provincial governments have the responsibility to stipulate standards of compensation for other types of land with reference to the standard for cultivated land. In addition to land compensation, the regulations provided for a resettlement subsidy to finance provisions for restoration of production. This subsidy is paid on a per capita basis based on the "agricultural population to be resettled." This is calculated by dividing the area of cultivated land requisitioned by the average amount of cultivated land per person of the collective, before land requisition."3 The resettlement subsidy shall normally be in the range of two to three times the average annual output value in the past three years, and shall not exceed ten times the average annual output. The explanatory notes accompanying the regulations'4 provide examples of the calculation of this subsidy, demonstrating that the subsidy per capita is actually two to three times the output value of one mu of land (one mu of cultivated land per capita was a common target value at the time). Thus if the per capita area of cultivated land prior to resettlement is 0.5 mu, the subsidy becomes four to six times the output value per mu of the land requisitioned. If it is 0.25 mu, the subsidy is calculated as 8 to 12 times, in which case the absolute limit of ten times would apply. The regulations further provided that if land compensation and resettlement subsidies are still insufficient to restore farmers' living standards to previous levels, the resettlement subsidy may be further increased, with the approval of the provincial government, provided that combined land compensation and resettlement subsidy shall not exceed 20 times the average annual output value of the cultivated land requisitioned. As in the case of compensation standards, provincial governments have the responsibility to stipulate standards for resettlement subsidies for other types of land (orchards, fishponds, pasture lands, and so on) with reference to the standard for cultivated land. Under the regulations, all compensation and resettlement subsidies, except for compensation for individually owned property on the land and unharvested crops from land being contracted to an individual, are to be paid to the collective to finance the development of new production base, to find jobs for surplus labors, and to provide subsidies for those who cannot be employed. Funds shall not, in any circumstances, be 12 Land Requisition Regulation for State Construction (LRRSC), May 14, 1982 These provisions were generally carried forward into the 1986 Land Administration Law cited above. 3 It is recognized that this is not necessarily equivalent to the number of project-affected persons. It is simply a statistical number for determining resettlement subsidy to be paid to the collective. 4 Explanation of various problems about "Land Requisition Regulations for State Construction."  Section 2. Legal and Resettlement Policies Framework 7 diverted for other purposes. The Land Administration Law further specifies that compensation funds received are shared equally by all village members and may be used individually or collectively to either develop new production bases or improve existing production capabilities. Responsibilities for Resettlement. Responsibility for organizing resettlement is placed with land administration units at or above the county level. They are charged with coordinating efforts of local governments in the affected areas and the unit requisitioning the land by developing agricultural and sideline activities and setting up township or village enterprises. If there are still people who cannot be resettled, qualified individuals may be employed by the units requisitioning the land or other State- or collective-owned units, with the resettlement subsidy transferred to these units. Provincial Regulations. The national land requisition regulations delegated specification of detailed measures in several areas to provincial governments. Accordingly, detailed implementing regulations were issued by the Fujian Provincial Government (FPG).15 These included specific compensation and resettlement subsidy multipliers for cultivated and other categories of land. For cultivated land the compensation multiplier was set at five times the annual output value (within the range of three to six times set by the national regulations). The resettlement subsidy was set at two to three times (as for the national regulations), with the higher limit pertaining to area in the purview of city plans of the ten provincial cities and the lower limit applying elsewhere. Large- or Medium-Size Water Conservation and Hydroelectric Projects. The land requisition regulations provided that methods for relocating and resettling people in these projects would be stipulated separately by relevant national agencies. While these regulations were not issued until 1991, the first draft was available during the planning period for Shuikou resettlement."6 These supplementary regulations lay down the basic principles for reservoir resettlement: * The Government advocates and supports resettlement with development and adopts the approach of giving compensation in the early stages of resettlement and providing rehabilitation assistance after displacement. * Benefits to the nation, communities and individuals should be considered in an integrated manner. * Resettlement shall be synchronized with resource development, soil and water conservation and economic development in the reservoir area. 5 Method for implementing "Land Requisition Regulation for State Construction in Fujian Province, 1984." 16 China State Council, 1991, "Regulations for Land Acquisition and Resettlement for the Construction of Large- and Medium-Sized Water Conservancy Projects."  8 Section 2. Legal and Resettlement Policies Framework * All displaced persons shall be assisted to improve or at least restore their former living standard in steps. * Resettlement should be planned taking full consideration of local conditions and available resources. * If conditions allow, displaced people should be resettled as near as possible.'7 Otherwise alternatives such as reclamation of wasteland, land reconsolidation and moving to other areas should be considered. More specific compensation and resettlement subsidy standards are also specified within the ranges laid down in the general land requisition regulations. However, they do provide that for large-scale flood control, irrigation or drainage projects (not hydropower), land compensation standards could be reduced, with detailed standards negotiated between the Ministry of Water Resources (MWR) and concerned departments. Supplementary benefits to resettlers, beyond compensation and resettlement subsidies, are also stipulated: * Government to establish a reservoir construction fund to finance resettlement site maintenance and production development. * Communities affected by hydropower plant construction to be electrified, with preferential tariffs for irrigation and drainage. * Priority to be given for displaced persons to use water surface and reservoir drawdown areas. * Priority to be given to resettlement communities in government budgetary support for agriculture, communications, culture, education and health care, and to employment in government construction projects. * Government support to economic rehabilitation efforts to extend for five to ten years after displacement. The resettlement planning report also refers to provisional provincial regulations"8 relating to water conservation and hydropower projects but a copy of these regulations is not available. 7 Article 12 elaborates: "within their original township or county, or within the area benefited by the project." 18 "Fujian Provisional Requirements on Reservoir Resettlement Due to Large- and Medium-Scale Hydroelectric Projects" (draft) (1983).  Section 2. Legal and Resettlement Policies Framework 9 Design Standards. In 1985, the Ministry of Water Resources and Electric Power (MWREP) issued detailed specifications on methods for dealing with reservoir inundation."9 These standards deal with the following topics: * Determination of the area affected by reservoir inundation, taking into account, inter alia: flood protection standards for various categories of land and occupation thereof; the effect of backwater at the tail end of the reservoir; runup of waves on reservoir shores; raising of groundwater levels, rendering land unsuitable for agriculture or occupation; slumping of peripheral land areas into the reservoir; and effects on production and daily life of communities. * Detailed provisions for design work in relation to reservoir inundation, to be carried out in two phases: preliminary design phase and technical construction.20 The first phase includes: topographical mapping; affected area delineation, geological and hydrological surveys; inundation inventory (land of various categories, population and housing, mines, infrastructure, and so on) based on statistical surveys; economic data and projected impacts; definition of criteria for moving and compensation standards; resettlement plans for displaced persons; proposals for relocation or protection of cities, towns and major infrastructure; and a planning report detailing the above together with a cost estimate Proceeding to the second stage requires approval of the preliminary design of the associated water resource development project and agreement with local governments on the preliminary design of the resettlement. The second stage entails: marking out of reservoir boundaries; detailed inundation inventory; and more detailed resettlement and rehabilitation planning. - Detailed guidelines to be adopted in resettlement planning elaborating on the principles laid down in the national regulations. - Requirements for preparation of overall reservoir area development plans, upon filling of the reservoir. * Detailed guidelines for preparing cost estimates, which among other things, extends the discussion of compensation to fixed assets other than land. 19 Ministry of Water Resources and Electric Power (MWREP), 1985. "Design Standard for dealing with Reservoir Inundation by Water Conservancy and Hydroelectric Power Project Reservoirs" (SD130-84). While these standards were not issued until 1985, a 1983 first draft was available to the Shuikou resettlement planners. 20 These phases correspond to the phases of engineering design of the water resources or hydropower project. The latter phase is concluded before commencement of construction.  10 Section 3. Resettlement Planning 3. RESETTLEMENT PLANNING2' Organization Initial resettlement planning work was carried out during the 1970s, when ECIDI undertook the preliminary investigation and design of the project. During the preliminary design phase, the power plant size and reservoir water level were determined, and an initial reservoir inundation survey and preliminary resettlement planning were undertaken. In its approval of the preliminary design in 1982, MWREP requested FPG to develop a detailed resettlement plan for the displaced people in compliance with national regulations on resettlement, and meeting the requirements set forth by SPC and the World Bank. A temporary organization referred to as "Fujian Shuikou Resettlement Planning Team" (the planning team) was set up by FPG in October 1982 to carry out the resettlement planning work for the project. The planning team, directly under the provincial government, consisted of 63 staff from relevant provincial departments, such as FPEPB, the Land Administration Bureau, and the Agriculture Department. In addition, subteams were established in the three affected counties and Nanping City. The planning team, together with the four subteams, completed their task in one year, and submitted their report to FPG in October 1983, after which it was submitted to the central govenment. The Shuikou resettlement plan was approved by MWREP in 1984. Basic Principles and Compensation Standards for the Shuikou Project Based on the national and provincial regulations referred to above, the following basic principles and standards were derived for Shuikou resettlement:22 * Inundation area to be based on a flood protection standard of 1-in-20-years for structures and 1-in-2-years for agricultural land.23 21 The resettlement planning process for Shuikou reservoir took place over a long period, from the early 1980s and extending throughout the implementation period. The discussion here is focused on the planning process prior to implementation, at which point responsibilities were handed over to the SRRO. It is extracted from the Shuikou Planning Team, 1983. 22 This summary of principles is extracted from Annex 17 of the Staff Appraisal Report for Loan 2775- CHA, World Bank, 1986. Virtually all have been extracted from previously cited national and provincial regulations. 23 As the major crop in this area is rice, which can withstand several days of inundation, this standard is considered reasonable.  Section 3. Resettlement Planning 11 * Displaced persons and facilities to be reestablished at the nearest available sites within their respective counties and, if possible, their original townships. To the extent possible, the integrity of neighborhoods and hamlets will be maintained in the resettlement process. * To the extent possible, resettled persons to be enabled to continue with their previous occupation. * Resettlement to be arranged so that physical and human resources could continue to be at least as productive and living conditions at least as convenient as they were before. * Plot size for resettled farmers to meet minimum standards so as to enable farmers to continue making a living on the land. * During the transition period, the provincial government to supplement the agricultural production of farmers with grain, as required. * Public facilities to be reconstructed at least to the preexisting standards. * The supply of construction materials (steel, lumber and cement) for reconstruction of dwellings, buildings and other facilities to be given priority.