RESETTLEMENT POLICY FRAMEWORK AND PROCEDURAL GUIDELINES GAUNGXI ROADS DEVELOPMENT II PROJECT

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1 Village Roads Component on the GAUNGXI ROADS DEVELOPMENT II PROJECT in THE PEOPLE S REPUBLIC OF CHINA (PRC) Guangxi Comnications Department Nanning, PRC This report was prepared by the Borrower and is not an ADB document. Version dated: 30 June 2004

2 CONTENTS 1. Introduction Scope Of Resettlement Impacts Legal Framework Resettlement Principles and Eligibility for Compensation Entitlements Compensation Standards Rehabilitation Approaches Institutional Arrangements Resettlement Funding, Cost Estimate, Flow of Funds Consultation, Disclosure, and Grievance Redress Resettlement Monitoring and Evaluation Arrangement Procedure Guidelines for RP Preparation...7 Annex Data to be Collected for RP Preparation and Resettlement Budget Estimates...8

3 1. Introduction The Guangxi Roads II Project includes the construction on an expressway from Tanlou to Baise, including interchanges, connector roads and a 250 km inter-county road. A full Resettlement Plan (RP) has been prepared for these components. The Project will also include upgrading 500 km of village roads, but the plans for these roads are very general at this time. In accordance with ADB requirements, this policy framework addresses any village roads that involve land acquisition and resettlement. The users and beneficiaries of the village roads are all the villagers along those village roads. The rural land is owned by rural collective, and is contracted, managed and used by collective, village groups or individuals. If the village roads use some land contracted by very few villagers, the affected village will readjust the land within that village. So usually it isn t necessary for the government to pay the compensation and subsidy for the land (for details, please refer to Section 6.1). The village roads are narrow and low in standard, and will use little land or no land for upgrading. Therefore, it is estimated that basically there is no significant land acquisition and that house relocation can be avoided. In case a few houses are demolished for the village roads, it will be implemented according to the national and local laws and regulations, ADB s related policies and this policy framework. The civil work for upgrading village roads will be done by the county or township road construction teams, and local labor will be hired for unskilled jobs. 2. Scope Of Resettlement Impacts Based on the experience with the upgrading of village roads, the land acquisition and resettlement impacts are considered minor and not significant. At this time, there is no estimate of the amount of land acquisition, demolished structures and affected people. The road sections have only been generally identified and there will likely be some changes before implementation. 3. Legal Framework In China, rural land acquisition and resettlement is based on Land Administration Law (1998) and relevant provincial implementation measures, which clarify land rights and provide a basic legal structure and policy framework for addressing all land acquisition and resettlement issues. Land Tenure (ownership): Village land is owned by the collectives and is contracted, managed and used by collectives, groups or individuals. At present land is normally contracted to villagers for 30 years. Land Acquisition: 1) For simple village roads ( km), where works are conducted entirely within the village by the collective, there is no requirement for land compensation payments because there is no transfer of land ownership. 2) For township-village roads, the road is 1

4 owned by the township government; therefore, land transfer and compensation would be required for the affected village(s). Land Compensation and Subsidy: The village is required to readjust the remaining land or pay cash compensation to households that lose some of their contracted land. For townshipvillage roads, compensation and subsidies will be paid by the County Comnications Office (CCO) to the affected village collective in accordance with the standards in Section 6. Demolished housing and affected assets on the land: The village committee is required to pay compensation for demolished or affected housing, attachments, trees and young crops belonging to groups or individuals; such compensation will be paid in cash directly to the affected owners. Consultation and Disclosure The village committee will consult with villagers and solicit comments and suggestions before finalizing the compensation arrangement and mitigation measures. Resettlement information booklets (or the Resettlement Framework) will be distributed to the affected villages as soon as the road section is confirmed to be in the program by the CCO. 4. Resettlement Principles and Eligibility for Compensation Following the Chinese laws & regulations on land acquisition and resettlement and incorporating ADB policy on involuntary resettlement, the basic principles of land acquisition and resettlement for the Guangxi Roads II Project include the following elements: Minimize negative impacts as ch as possible; Carry out land adjustment or compensation to improve or at least restore the pre-project income and living standards of the affected people; Fully inform and consult closely with affect people on compensation arrangements; Provide compensation for private assets at replacement rates, prior to commencement of civil work on the affected section. Regarding the eligibility of compensation, all affected people will be provided with compensation and rehabilitation if: their land area is reduced, income source is adversely affected, houses partially or fully demolished, and other properties (crops, trees, and other facilities) or access to these properties will be reduced or damaged due to land acquisition. Lack of legal documents of their customary rights of occupancy certificates shall not affect their eligibility for compensation. This resettlement policy shall apply to all village roads under the project regardless whether or not they are directly funded by ADB. The policy applies to all affected persons regardless of the number or the severity of impact. Particular attention is to be paid to the needs of vulnerable groups, defined as affected households that are: the extremely poor households, elderly living alone, disabled, household headed by women, and ethnic minorities other than Zhuang people 1, such as Yao people. 1 The Zhuang people comprise the vast majority (80% to 100%) of the people in the project townships. The basic provisions in the RF reflect preferential compensation standards and entitlements for the Zhuang people. 2

5 5. Entitlements The affected households will receive their entitlement in accordance to the type of impact, their eligibility and compensation standards set out in Table 1. Type of Loss I. LOSS OF LAND USE Temporarily Affected Agricultural Land Table 1 Entitlement Matrix Entitled Persons Compensation and rehabilitation measures Households with land use rights or lease rights Cash compensation for loss of income potential (1,000 yuan/ for farmland, and 200 yuan/ for nonfarmland). Restoration of land to its previous or better quality. Implementation Issues Temporary use of land will range from 6 to 12 months Permanently Affected Agricultural Land Households with land use rights and Village Collective 1) If land use for the village road construction is within the village, no land acquisition fees should be paid by the Project. However, if the land use affects some contracted households, the village should take some mitigation measures to the APs, such as readjustment of the contracted land, providing the affected households a replacement land, or paying in cash to the affected households if no land can be readjusted or given to the APs. The APs will be free from taxes, registration and land transfer resulting from the village road construction. 2) If land use for the village road construction is out of the original village, such as town-village road construction, the compensation standard for permanent land acquisition, including land compensation, resettlement subsidy, and young crop compensation, is 5,000 yuan/ for farmland, and 1,000 yuan/ for non-farmland. Permanently Acquired Residential or Commercial Land Households with land use rights Households with lease rights (e.g., market stalls) A new housing plot will be provided of equivalent size and accessibility. A new housing plot will be provided of equivalent size and accessibility. Cost of the plot and fees will be paid by the project. In the case of new markets, the AP will be entitled to lease a stall at a preferential rate. II. LOSS OF HOUSES & OTHER STRUCTURES Affected Houses and Structures (private or public) Registered owner of house/property Compensation in cash for affected houses and structures based on size and quality of construction and compensation standards. Compensation is at the replacement cost, without deduction for depreciation or salvageable materials. 3

6 Type of Loss Entitled Persons Compensation and rehabilitation measures Implementation Issues III. LOSS OF COMMON PROPERTY RESOURCES Irrigation Facilities Affected villages and households Restoration of irrigation facilities to at least previous condition. IV. SPECIAL MEASURES Special assistance for vulnerable households extremely poor households, elderly living alone, disabled, household headed by women, and ethnic minorities other than Zhuang people, such as Yao people Households will receive priority for road construction jobs. One member of affected households will be provided training to develop alternative livelihood sources. 6. Compensation Standards Since the village road subprojects have not yet been specifically identified, the detailed project impacts and local compensation standards for land acquisition and building demolition will not been fixed. However, following the national laws and provincial regulations and ADB policy, this policy framework has established entitlements, minim land compensation rates and rehabilitation approaches to address anticipated types of project impacts. 6.1 Land compensation For simple village roads where the land use for the village road construction is within the village, land will be still owned by the village. There is no transfer of land ownership, and this only requires the replanning of the land use within the village. No land acquisition fees are required to be paid because the road is owned by the village. However, if the land use affects some contracted households, the village should take some mitigation measures for the APs, such as readjustment of the contracted land, providing the affected households a replacement land, or paying in cash to the affected households if no land can be readjusted or given to the APs. Most villages have 5 % cultivated land in reserve, which may be allocated to those individuals losing land use rights. The amount of reserve land is ch greater than the potential loss of land from upgrading village roads. For township-village road construction where the land use in several villages may be affected, the compensation standard for permanent land acquisition, including land compensation, resettlement subsidy, and young crop compensation, is as follows: - farmland - 5,000 yuan/ - non-farmland - 1,000 yuan/ For temporary land occupation, in general compensation will be paid directly to affected persons for the time of occupation, based on average annual yield of different types of 4

7 cultivated lands, plus the cost of restoring the land to its original condition. Since village road construction will only require land for short periods not exceeding on year, the compensation standard for temporary land occupation is as follows: - farmland - 1,000 yuan/ - non-farmland yuan/ 6.2 House relocation For demolished houses, the affected household is entitled to the replacement value of lost structures (without depreciation or deduction of salvage materials) and land attachments. The village will provide the affected household a comparable or better housing plot. The APs will be free from taxes, registration and land transfer resulting from the village road construction. From the experience with village road construction, there is usually no impact on the houses, so the detailed house compensation standards can not be fixed for the present. However, before the village road subprojects which will cause house demolition are selected, the related house compensation standards will be decided in accordance with the local regulations in the affected areas. The compensation will be paid directly to the affected household/owner. The affected households will rebuild their houses by themselves with compensation received and construction materials from their old houses. For those vulnerable households, the village committees will provide assistance in house rebuilding. 7. Rehabilitation Approaches In general, the impacts of the Project will be very minor in most cases and rehabilitation options will be selected by each individual household. Some households may be seriously affected or may risk becoming worse off, despite the full payment of compensation. Such households will receive the following entitlements: - guarantee hire for road construction labor - skills training (one person per household, at least 50% females) - priority for involvement in local poverty reduction programs. 8. Institutional Arrangements The Guangxi Roads II Project Management Office (PMO) has overall coordination responsibilities for Project components, including the village roads. The county comnications office (CCOs) in each of the 5 counties and districts (Long an County of Nanning City, Pingguo County, Tiandong County, Tianyang County, and Youjiang District of Baise city) will be responsible for supervising implementation of village roads. The GCD will prepare annual internal monitoring reports for village roads to be included under the Project, and submit the reports to ADB. 5

8 9. Resettlement Funding, Cost Estimate, Flow of Funds Any costs for resettlement for the village roads will be covered in the lump sum provision provided to each village by the CCOs. If cash compensation is required, the village committee will make payments directly to the affected households. The amount of fund for resettlement will be small compared to the cost of civil works, and is included in the total estimated cost of the village road program. More detailed costs will be included in the detailed village road program. In order to minimize or resolve problems in arranging compensation or rehabilitation, CCOs will inspect the completed roads before making final payment. 10. Consultation, Disclosure, and Grievance Redress The consultation with the APs will take place in the early process of village road planning. Prior to project construction, village leaders will conduct a survey of all affected land and assets. The village committee will consult with affected groups and households to discuss options for replacement land or cash compensation. A comprehensive Resettlement Plan (RP) for the minority village road resettlement plans will be submitted to ADB for posting on ADB's resettlement website. The RP will list all the road segments in the program and will quantify the resettlement impacts, if any, for each segment. A Resettlement Information Booklet (RIB) will be distributed to affected households in the village as soon as the villages have been approved in the road program. Consultation and participation will be continued through the village road implementation. Grievances can first be addressed to the village committee. If no settlement is reached within two weeks, the complainant has one month to elevate the grievances to the township government office. If it still unresolved within two weeks, the case can be sent to CCOs. Final appeal is available in the civil courts as established by the Regulations for Administrative Redress. 11. Resettlement Monitoring and Evaluation Arrangement Following the requirements of the ADB, during the resettlement implementation, both internal and external resettlement monitoring and evaluation will be carried out in order to monitor resettlement implementation and ensure all APs or villages are compensated adequately and their income and livelihood are restored after resettlement and rehabilitation. The internal resettlement monitoring will be carried out by each CCO. During the land acquisition stage, the CCO will collect information of impacts, compensation payments, employment activities, training and grievances. GCD will prepare annual internal monitoring reports and submit to ADB. For external resettlement monitoring and evaluation, an independent agency will be contracted 2 over 3 years to assess socio-economic progress and to carry out independent monitoring and evaluation of village roads and any land compensation and resettlement 2 This may be the same monitoring institute that is hired for the main expressway component. 6

9 activities. The method of resettlement monitoring and evaluation will be based on a combination of sample household surveys and rapid appraisal in the field. The sociologist will assess whether: (i) project implementation is in compliance with the policies and entitlements set out in the RF; (ii) the affected people have fully restored their livelihoods; and (iii) the affected people have directly benefited from the Project. The sociologist should make recommendations to improve implementation. The resettlement monitoring and evaluation should be carried out once every year and an annual report prepared for submission to ADB. 12. Procedure Guidelines for RP Preparation For each year of the village road program, a short resettlement plan should be prepared by GCD with assistance from the CCOs. The RP will include all village road segments to be upgrading in the subsequent fiscal year. The RP will be disclosed to the affected persons and endorsed by the GCD. The RP will be sent to ADB for concurrence prior to the award of civil works on the village roads for that year s program. Following ADB requirements, the resettlement plan will include following key elements: estimate of the numbers affected persons and extent of losses; the policies and legal framework applicable (as per this Resettlement Framework); asset valuation, compensation standards, entitlements of affected village and households; proposed method of compensation (cash or replacement land) and rehabilitation measures; agencies responsible for measuring, delivering and monitoring compensation entitlements; cost estimate and source of funding; timing for compensation, land acquisition and rehabilitation measures; consultation and grievance mechanisms for people affected (as per this framework). 7

10 Annex Data to be Collected for RP Preparation and Resettlement Budget Estimates A1. DATA TO BE COLLECTED IN ORDER TO PREPARE THE RP The related sample tables (for reference only) are as follows: Sample Table Estimates of Land Affected Permanently Item unit amount Paddy field Dry land Sugarcane field Vegetable land Orchard Fish pond Cash forest land Timber forest land Waste land Total Sample Table Estimates of Land Affected Temporarily Item unit Amount Paddy field Dry land Sugarcane field Vegetable land Orchard Fish pond Cash forest land Timber forest land Waste land Total Sample Table Estimates of Affected Structure item Unit Amount Brick concrete structure square meters Brick timber structure square meters Wooden structure square meters Earth wood structure square meters Simple structure square meters Total square meters 8

11 Sample Table Estimates of Affected people Item Persons Households People affected by permanent land acquisition People affected by temporary land occupation People affected by house demolition Sample Table Estimates of Affected other assets Item Unit Amount Trees Well Tomb Pool Comnication line Electricity line 9

12 A2. ESTIMATE OF RESETTLEMENT COSTS The related sample table (for reference only) is as follows: Affected Item Unit amount 1. Permanent Land Acquisition and Temporary Land Use 1.1 Land compensation, resettlement subsidy and young crop compensation - Farmland - Non-farmland 1.2 Temporary land use Fee 2. House Demolition and Relocation 2.1 House compensation - Brick concrete structure - Brick timber structure - Wooden structure - Earth wood structure - Simple structure 2.2 Housing attachments 2.3 Scattered Trees 3. Reconstruction of Infrastructure 4. Management Costs 5. Contingencies 5.1 Physical contingencies 5.2 Price contingencies Total Unit Cost (yuan) Compensation amount (Yuan) 10

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