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

RP209 Volume 2 Hubei Shiman Expressway Project Resettlement Policy Framework A. Project Objectives and Description 1. The objective of the Shiman Expressway Project is to promote development of an integrated, efficient, and sustainable transportation system for the movement of people (especially poor farmers ) and goods in the poor North Western Hubei Province. More specifically, the project aims to support: (i) Investments in local road improvement plan (LRIP) to improve transportation infrastructure and services that address needs of the local current system in enhancing, capacity, safety and sustainability (particularly the most vulnerable sections of society) within a long term framework provided by the approved 5 Years Development Plan of Fifth Master Plan; (ii) Formulation of a transportation strategy to guide investment decisions. The objective of the LRIP is to improve socio-economic conditions in low-income areas of Hubei province, through better road access by population to markets and social services. Under that program the project will rehabilitate or upgrade a series of low class (class IV, III) roads in Shiyan prefecture, one remote and poor area in the mountainous North West of Hubei Province. At first, a priority county has been identified (Shiyan city) given the importance of low income counties within that area, the conditions of local roads and priority given by HPCD to improve accessibility, and the possibility to leverage SME benefits as the expressway will cross the area. In a second stage specific local roads will be selected according to the following criteria: * current road conditions, lack of alternative infrastructure. * minimum traffic threshold, * contribution to the responsiveness of the provincial highway network, * inclusion in Hubei highway program and support from local residents, and * socio-economic impacts of road improvements and expected economic rate of return above 12%. 2. The LRIP has 2 phases as described below: The LRIP component will be comprised of several phases. The first phase has been fully identified and consists of the upgrading of Baoxia - Zhushan road (85 kin) to class III standard and the construction of the Jiangjunhe bridge over the Han river. Both projects are listed in the Provincial Three Year Highway Program (2003 - 2005). Since that phase is estimated at $26.14 million, additional road sections will complete the LRIP up to an $50 million investment amount. They will be identified during the project implementation on the basis of the above mentioned socio- economic and network criteria and their implementation will meet all safeguard policies. 3. Land acquisition is expected to occur only in the proposed expressway. A corresponding Resettlement Plan (RP) has been prepared for civil works causing land acquisition that could be identified and specified prior to project appraisal. This RP has been accepted as meeting the policy requirements of the World Bank. It is very likely, however, that resettlement negative impacts may occur during rural road improvement implementation, or activities not identified at appraisal may be proposed FILE COPYV  for inclusion under the LRIP. The borrower has agreed to apply World Bank policy procedures and standards if land acquisition and resettlement is required in any such changes. If such changes are to occur, the borrower has agreed to prepare RPs for Bank review and acceptance when detailed planning becomes possible. This Resettlement Policy Framework (RPF) establishes principles and guidelines to be used in subsequent resettlement preparation and implementation if such circumstances arise in any of the project components. B. Objectives, Definitions and Key Principles 4. In World Bank-assisted projects, borrowers are expected to take all necessary measures to mitigate adverse social impacts, including those associated witlh land acquisition. World Bank Operational Policy 4.12, Involuntary Resettlement, provides essential guidance on objectives and principles that are applicable in projects generating land acquisition and resettlement-related imipacts. 5. Every reasonable effort is to be made to avoid or minimize the need for land acquisition, and to minimize all resettlement-related adverse impacts. If land acquisition and associated adverse impacts cannot be avoided altogether, the principle objective of the RPF is to ensure that all persons subjected to adverse impacts ("displaced persons" as defined below) are compensated at replacement cost (as defined below) for lost assets and otherwise provided with any rehabilitation measures or other forms of assistance necessary to provide them with sufficient opportunlity to improve, or at least restore, their incomes and living standards. 6. "Displaced persons" refers to all the people who, on accounlt of the activities listed above, would have their (I) standard of living adversely affected ; or (2)right, title, interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed temporarily or permanently; (3) access to productive assets adversely affected, temporarily or permanently; or (4) business, occupation, work or place of residence or habitat adversely affected; and "'displaced person" means any of the displaced persons. 7. "Replacement cost" is defined as follows: The land compensation rates will be based on the principle of national land law and refer to provincial land regulation. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures so as to meet the replacement cost standard. Such additional assistance is distinct lfrom resettlement measures to be provided under other clauses in OP 4. 12, para. 6. 8. World Bank's OP 4.12 establishes key principles to be followed in resettlement planning and implementation. Of particular relevance for this RPF are the following: a) Wherever possible, project designs and RPs should be conceived as development opportunities, so that displaced persons may benefit fromll the services and facilities created for, or by, project activities. b) All displaced persons are entitled to compensation for lost assets, or to alternative but equivalent forms of assistance in lieu of compensation-; Lack 2  of legal rights to the assets lost will not bar displaced persons from entitlement to such compensation or alternative forms of assistance. c) Compensation rates as established in an RP refer to amounts to be paid in full to the individual or collective owner of the lost asset, without depreciation or deduction for any purpose. d) When cultivated land is acquired, it often is preferable to arrange for land-for- land replacement through collective land redistribution. In some cases. as when only small proportions of income are earned througLh agricultul-e, alternative measures such as payment of cash or provision of employ'ment are acceptable if preferred by the persons losing agricultural land. e) Replacement houseplots, sites for relocating businesses, or redistributed agricultural land should be of equivalent use value to the land that was lost. f) The resettlement transition period should be minimized. Compensation for assets should be paid prior to the time of impact, so that new houses can be constructed, fixed assets can be removed or replaced, and other necessary mitigation measures can be undertaken prior to actual displacement. Adequate transitional support should be provided to any persons unable to obtain replacement housing prior to displacement, Luntil replacement housing is obtained. g) Displaced persons should be consulted during the process of RP preparation, so that their preferences regarding possible resettlement arrangements are solicited and considered; RPs are publicly disclosed in a manner accessible to displaced persons. h) The previous level of community services and access to resources will be maintained or improved after resettlement. i) The borrower is responsible for meeting costs associated with land acquisition and resettlement. Financial and physical resoulces for resettlement and rehabilitation will be made available as and when required. j) Resettlement program will include adequate institutional arl-angenlents to ensure effective and timely design, planning and implemiielntation of' resettlement and rehabilitation measures. k) Adequate arrangements for effective internal and external monitoring will be made on implementation of all resettlement mleasures. I) Methods by which displaced persons can pursue grievances will be established as necessary, and information regarding these grievance procedures will be provided to displaced persons. C. Legal Framework 9. The primary purpose of this RPF is to ensure that resettlement planning and implementation in activities identified in Para. 4 meet the requirements of World Bank OP 4.12. Additionally, resettlement activities should be designed in accordance with the Land Administration Law of the People's Republic of China (adopted at the l 6th Meeting of the Standing Committee of the Sixth National People's Congress on .June 25, 1986, amended in accordance with the Decision on Revising the Land Administration Law of the People's Republic of China made by the Standiwt, Committee of the Seventh National People's Congress at its 5t" Meeting held on December 29, 1988, and revised at the 4th Meeting of the Standing Committee of the Ninth National People's congress on August 29. 1 998); 3  D. Preparing and Approving RPs 10. Responsibility for preparation and implementation of RPs (including responsibility for meeting all costs associated with resettlement) r ests with the borrower. The agency with overall responsibility in this project is the Hubei Communication Departmen, acting through the Project Resettlement Office (PRO). Responsibility for many aspects of land acquisition and resettlement rests wx'ith prefecture and county governments, however. In this project, PRO will coordinate activities as necessary to ensure effective resettlement planning and implementation. I1. Once it is determined that land acquisition is essential to complete any of the activities identified in Para. 4, and once siting criteria establish the land area to be acquired, resettlement planning should begin. The borrower will carry out, or cause to be carried out, a census survey to identify and enumerate the persons to be displaced by the subproject, and a socioeconomic survey to determine the range and scope of adverse impacts in the affected area. The census survey must cover 100% of the persons to be displaced; the socioeconomic survey may be undertaken on a sample basis. The surveys, which may be undertaken separately or simultaneously. determine whether a full RP or an "abbreviated" RP (as defined in OP 4. 12. Annex A) is necessary. When the number of persons affected exceeds 200. a ftull RP is necessary. Where impacts on the entire affected population are imliorI, or fewer than 200 people are affected, an abbreviated RP may be prepared. Impacts are considered miiinor" if the affected people are not physically displaced and less than 10% of theil productive assets are lost. 12. If a RP is necessary, it will be prepared in accordance with the policy principles and planning and implementation arrangements set forth in this RPF. The RP is based on accurate baseline census and socioeconomic survey information, and establishes appropriate mitigation measures (e.g.- compensation for assets, transitional assistance, economic rehabilitation assistance) for all categories of adverse impacts. Depending on the categories of impacts, the RP specifically addresses the following: a) description of the activity causing land acquisition; b) range and scope of potential adverse impacts: c) socioeconomic survey and baseline census survey information; d) review of relevant laws and regulations relatilg to land acquisitioni and resettlement; e) specific compensation rates (or alternative measures) for all categories of affected assets; f) other measures, if any, necessary to provide opportunities for economic rehabilitation of displaced persons; g) eligibility criteria for compensation and all other forms of assistance: h) relocation arrangements, if necessary, including transitional support; i) site selection and site preparation, if necessary; j) restoration or replacement of community infiastructure and services; k) organizational arrangements for implementation; I) consultation and disclosure arrangements: m) resettlement implementation schedule; n) costs and budget; 4  o) monitoring arrangements; p) grievance procedures; q) summary entitlements matrix 13. If an abbreviated RP is to be prepared, it also must be based on principles and planning and implementation arrangements established in this RPF. An abbreviated RP normally includes the following contents: a) a census survey of displaced persons and valuationi of assets: b) description of compensation and other resettlemenit assistance to be pi-ovided; c) eligibility criteria; d) consultation and disclosure arrangements; e) organizational arrangements for implementation f) timetable and budget, g) monitoring arrangements; h) grievance procedures; and i) arrangements for monitoring and implementation. 14. Any RPs prepared in accordance with this Framework must be reviewed and accepted by the Bank prior to awarding of contracts for the civil works cansilnI the displacement. E. Eligibility Criteria 15. The purpose of resettlement planning is to ensure that displaced persons have sufficient opportunity to replace assets they will lose, and to improve or at least restore their incomes and living standards. To achieve these objectives, it is essential to ensure that all displaced persons are identified, and to ensure that all displaced persons are deemed eligible for mitigation measures included in the RP. With regard to major categories of impact (e.g., loss of land in rul-al areas, loss of structure, and loss of income). the following measures normally apply: 16. Displaced persons losing agricultural land will be entitled to the following types of compensation and rehabilitation measures: a) Typically, collectively-owned cultivated land remaining after acquisition will be reallocated among all members of the collectivity by the village committee. Under these circumstances, all displaced persons are eligible for a share of reallocated land, and to benefit from collective investment of land compensation. b) In situations where land reallocation is not possible, the displaced persons who actually are to lose their share of collectively owned agricultural land m1ust be identified. In some instances, they may be provided with emlploymlienit with wages at least equivalent to income lost. In other cases. they may be paid a resettlement subsidy normally equivalent to at least 6 times the average annual production output value of the land in the previous three years. If this is not sufficient to restore livelihoods, the subsidy may be raised to as mIclh as 14 times the average annual output value; 5  c) If land compensation and resettlement subsidies paid are still insufficient, the resettlement subsidies may be further increased upon approval by the municipal government; d) Land compensation and resettlement subsidies are paid to the village committees whose land is affected and will be used for (i) increasing land areas under cultivation if land is available, (ii) intensification of agriculture through provision of irrigation, improved agricultural practices, etc., and (iii) development of non-agriculture based income generation activities. Individual displaced persons will be compensated at replacement cost for the loss of standing crops, fruit or industrial trees, as well as any fixed assets: e) Displaced persons whose land is temporarily taken to facilitate pro lect construction will be compensated for their loss of income, standing crops and for the cost of soil restoration and damaged infrastructures. 17. Displaced persons losing house and auxiliary structures will be entitled to the following compensation and rehabilitation measures: a) Provision of replacement housing of equivalent value; or b) Compensation at full replacement cost; and c) Compensation for replacement or restoration of all facilities and services (e.g., electricity, telephone, cable television, school enrollment fees), d) Transitional allowances as necessary to move all belongings, or to obtain temporary housing if necessary; and e) Special measures or preferences as necessary to enable poor or vulnier-able households to obtain replacement housing that meets minimiiumLI comImlunity standards (see the overall project RP). 18. If partial acquisition would render a house or structure ulisafe or no longer functional, it should be acquired in its entirety. 19. A displaced person losing business income (or employment income) will be entitled to the following rehabilitation measures: a) Mitigation measures for loss of business typically include: (i) the provision of alternative business site of equal size and accessibility to customers: or (ii) cash compensation to the owner for lost business structure reflecting full replacement cost of the structure and all fixtures: and (iii) transitionial payment for all moving-related expenses and for loss of sales or income during the period in which the business cannot operate. b) Mitigation measures for permanent loss of employment typically include: (i) provision of alternative employment at equivalent wages, or (ii) cash settlement equivalent to at least three years of lost wages; and (iii) transitional payment for re-training, relocation or other measures necessary for obtaining new employment. Persons temporarily losing eimploymenet because ol project disruption receive transitional wage support unltil employment is resumlied. G. Implementation Process 6  20. A detailed implementation schedule of all activities to be undertaken will be included in the RP. Payment of compensation and fLuriishing of other rehabilitation entitlements (in cash or in-kind), and relocation if necessary, should be completed at least one month prior to land acquisition. If it is not possible to make all compensation payments, or to provide other necessary forms of assistance, prior to land acquisition, additional transitional allowances may be required. H. Funding Arrangement 21. As established in Para. 10, PRO bears responsibility for meeting all costs associated with land acquisition and resettlement. Any RPs prepared in accoirdance with this RPF require inclusion of estimated costs and budgets. All persons adversely affected by land acquisition are entitled to compensation or other appropriate mitigation measures, regardless of whether these persons have been identified at the time of resettlement planning, and regardless of whether sufficient mitigation funds have been allocated. For these reasons, the budget in the resettlement plan includes contingency funds, typically 10% or more of the estimated total resettlement costs, to meet unanticipated resettlement costs. 22. Compensation rates included in the RP provide the basis fol- calculating compensation amounts due to displaced persons. Compenisation must be paid in full to the individual or collective losing land or other assets. No deductions from compensation will occur for any reason. The RP should describe the proceduLres by which compensation funds will flow from PRO to the displaced persons. As a general principle, the flow of funds should be as direct as possible, reducing the numliber of intermediary agencies to a minimum. 1. Consultation and Disclosure Arrangements 23. The RP must describe measures taken, or to be taken, to consult with displaced persons regarding proposed resettlement arrangements, and to foster their participation in activities essential to improvement or restoration of incomiles and living standards. To ensure that opinions and preferences of displaced persons are considered, consultations should begin prior to finalization of project designs and mitigation measures. Consultations should continue throug,hout the period in which the RP is implemented through external monitoring arrangements (see below). 24. The project office also discloses the RP, in draft and final stages, to the displaced persons and the general public in the project area, in a language and location accessible to them. Disclosure of the draft RP should occur at least one monthi prior to Bank review. Disclosure of the final RP occurs following Bank acceptance. .1. Grievance Procedures 25. Since the resettlement work will be carried out in consultation with displaced persons, major grievances are not likely to arise. However, to ensure that displaced persons have avenues for redressing grievance related to any aspect of land acquisition and resettlement, the following grievance procedures have been established: 7  a) Stage 1, any person aggrieved by any aspect of the resettlement documlient can lodge an oral or written grievance to the Village Committee, township/ town government or Residents Committee. County Government; b) Stage 2, if the aggrieved person is not satisfied with the decision of the grass- roots authorities at Stage 1, s/he can present the case to the land administration bureau from those immediately above Stage I level througLh the highest authorities of the respective component area. c) Stage 3, if the aggrieved person is still dissatisfied with the decisioii of the higher authorities, the case may be submitted for consideration by the People's Court in Accordance with the "Civil Procedure Act". K. External Monitoring 26. RP implementation will be monitored by a qualified agency independenit of the project office. The RP should establish the scope and frequency of monitolring( activities. External monitoring reports will be prepared for simultaneous submission to the project office and the World Bank.