External Monitoring Report - RP Implementation PRC: Yunnan Integrated Road Network Development Project (Longrui Expressway)

Transcription

1 External Monitoring Report - RP Implementation # 5 Semi-Annual Report July PRC: Yunnan Integrated Road Network Development Project (Longrui Expressway) Prepared by Beijing Zhongkehongce Consulting Company.

2 Table of Contents SUMMARY... 1 I. INTRODUCTION... 3 A. PROJECT BRIEF AND CONSTRUCTION PROGRESS...3 B. THIS MONITORING REPORT...3 II. METHODOLOGY... 4 III. LAR STATUS... 5 A. PERMANENT LAND ACQUISITION...5 B. HOUSE DEMOLITION AND RESETTLEMENT...7 C. TEMPORARY LAND OCCUPATION AND RESTORATION...8 IV. LAR IMPACT STATUS... 9 A. AFFECTED HOUSEHOLDS AND PERSONS...9 B. VULNERABLE AND SEVERELY AFFECTED HHS...9 V. SAFEGUARDING ENTITLEMENTS VI. EXPENSES AND FUNDING A. TOTAL COMPENSATIONS MADE...13 B. TOTAL EXPENSES AND FUNDING...13 C. LREC S CONTRIBUTION...14 D. FUNDS FLOW...14 VII. INSTITUTIONAL ARRANGEMENT AND CAPACITY VIII. RESETTLEMENT AND INCOME RESTORATION A. RESETTLEMENT HOUSEHOLDS...17 B. TRAINING OF APS...17 C. EMPLOYMENT OF APS...18 D. PROTECTION OF WOMEN'S RIGHT AND INTERESTS...19 E. SUPPORT TO VULNERABLE HOUSEHOLDS...19 F. INCOME RESTORATION OF LAND LOSS HHS...20 F. RESTORATION IN SEVERELY AFFECTED NATURAL VILLAGES...20 G. RESTORATION IN OTHER NATURAL VILLAGES...21 H. RESTORATION OF TEMPORARILY OCCUPIED LAND...21 IX. CONSULTATION AND PARTICIPATION X. GRIEVANCE REDRESS XI. CONCLUSION AND FOLLOW-UP ACTION XII. ANNEXES ANNEX 1. LAND ACQUISITION FOR SERVICE AREAS...25 ANNEX 2. ADDITIONAL LAND ACQUISITION...25 ANNEX 3. DETAILED TRANSFER RECORDS FROM LREC...26 ANNEX 4. TRAINING IN 2014 AND ANNEX 5: SURVEY RESULTS OF SAMPLE HHS...29 ANNEX 6: RESTORATION IN SEVERELY AFFECTED NATURAL VILLAGES...33 ANNEX 7: LAR IN 14 NATURAL VILLAGES...36 ii

3 List of Figures and Tables Figure 1: Longrui Expressway and Aligned Counties and Townships... iv Figure 2: Construction Progress... iv Figure 3: Relocation Houses... v Figure 4: APs Working as Unskilled Labors in Longling... v Figure 5: Training of APs in Affected Villages... vi Figure 6: Restoring Low-lying Land into Flat Land in Gazhong Village... vii Figure 7: Agreements Signing and Payment of Compensations... viii Figure 8: Interviewing APs during Monitoring... viii Figure 9: Funds Flow Chart...15 Figure 10: Institutional Arrangement...16 Figure 11: Grievance Redress Procedure...23 Table 1: Natural Villages and Contractors Surveyed...4 Table 2: Progress on Land Acquisition...5 Table 3: Land Acquisition by Type...6 Table 4: Provision of Land to Five Contractors...6 Table 5: Progress on Resettlement...7 Table 6: House Demolishment by Type...7 Table 7: Temporary Land Occupation Impact and Restoration...8 Table 8: Affected Households and Persons...9 Table 9: Affected Households and Persons by County...10 Table 10: Vulnerable and Severely Affected HHs...10 Table 11: Implementation of Entitlements Table 12: Total Compensations Made by July Table 13: Costs and Funding...14 Table 14: Fund Transfer Records from LERC to Coordination Offices...14 Table 15: Implementation of Training Program...18 Table 16: Employment of Unskilled Labors by Contractors...18 Table 17: Support to Vulnerable People...19 Table 18: Restoration in Severely Affected Natural Villages...20 Table 19: C&P Plan and Its Implementation Status...22 iii

4 Figure 1: Longrui Expressway and Aligned Counties and Townships May 2014 May 2014 Figure 2: Construction Progress iv

5 July 2013 July 2013 July 2013 July 2013 Figure 3: Relocation Houses Jan Figure 4: APs Working as Unskilled Labors in Longling v

6 Employment Skill Training, Mangshi, Jan Pest Management Training, Mangshi, July 2014 Tea Cultivation Training, Mangshi, March 2014 Tobacco Grading, Mangshi, April 2014 Dendrobe Processing, Longling, Feb IPM for Watermelon, Ruili, Jan 2014 Figure 5: Training of APs in Affected Villages vi

7 318mu, Gazhong Village, Zhefang Township, Mangshi City, March 2014 Planting Sugarcane, March 2014 Figure 6: Restoring Low-lying Land into Flat Land in Gazhong Village (A good sample of restoration of temporarily occupied land) vii

8 Signing agreement in Zhefang village, Zhefang township (Sept 2012) Posting payment sheet in Hunong village, Sept 2012 Mr. Yue Xiaosi, Mangli natural village, Zhefang township, received CNY 399,101,5 for affected house on 22 Sept 2012; and CNY 106,057,84 for land loss on 04 Nov Figure 7: Agreements Signing and Payment of Compensations Bank Account (opened in 2006) and a payment received. Figure 8: Interviewing APs during Monitoring viii

9 Summary A. Construction Progress By June 2014, civil works of the expressway s subgrade had been basically completed: (i) 97% of roadbed excavation done; (ii) 85% of roadbed filling finished; (iii) 98% of slope protection works done; (iv) 100% of soft foundation treatment completed; (v) 98% of bridge piles/foundation completed; (vi) 98% of culverts and crossings done; (vii) 85% of tunnel works; and etc. B. Permanent Land Acquisition Land acquisition was basically completed for both the land within staked construction redlines (i.e., expressway alignment itself) and for additional land beyond the staked redlines by July Overall the project had acquired 13,862.2mu of land by July 2014, which is 120.8% of the RP estimate. C. Relocation of Affected HHs By July 2014, a total of 297 HHs were relocated, which is 133 HHs more than the RP estimate of 164 HHs, and 2 HHs more than the revised estimate of 195 HHs in the LREC s DDR. 1 D. Temporary Land Occupation and Restoration As of July 2014, overall temporary land occupation is 1,715.0mu, accounting for 49.8% of the planned area in the RP. Along with completion of some civil works, over 1,300mu of once temporarily occupied land was restored. E. Safeguarding Entitlements Implementation of entitlements status followed the RP, including (i) compensation for land, houses, and standing crops with rates specified in the RP; (ii) assistance to vulnerable HHs as specified in the RP; (iii) timely payment of compensation to APs; and (iv) implementation of income restoration measures as planned in the RP. In addition, there are two positive exceptions: (i) wasteland and some forestland were counted as farmland in practice, this enabled APs to benefit more from the project because of higher compensation rates; and (ii) Zone I land compensations rates (i.e., higher rates) were adopted for Zone II in the case of Mangshi city 2. However, compensations for government managed and restored telecommunication and power supply facilities were not compensated yet. The restorations were carried out by the management bodies as per governments decisions. F. Total Expenses and Funding Total expenses on LAR, including compensations made and administration expenses, as well as expenses for external monitoring are CNY million by July 2014, which is 110.3% of the RP budget. Of the total expenses, LREC and local government contributed CNY million (70.2%) and CNY million (29.8%) respectively. LREC s contribution of CNY million accounts for 101.2% of RP budget. G. Institutional Arrangement and Capacity 1 Actual relocation HHs increased to 295 by July As per ADB s request, LREC submitted a DDR to ADB in March 2014 that explained the increases. 2 Paddy land: CNY 57,278/mu (Zone I, Mangshi township) vs. CNY 29,355/mu (Zone II, Zhefang and Santaishan townships); Dry land: CNY 50,669/mu vs. CNY 24,720/mu. 1

10 The actual institutional arrangements are identical to that specified in the RP (Figure 10). This institutional arrangement, with adequate and experience staff, is very capable and had ensured the smoothly Implementation of LAR as of July H. Grievance Redress The RP specified grievance redress system, mostly using existing administrative set-ups, is in place (Figure 11) and functioning well in the project counties. The relocation of 119 HHs by 2013, that were close to the expressway alignment but beyond the staked construction redlines, was resulted from complaints. These HHs household, for fear of blasting engineering works (HHs close to tunnels) and for fear noises and dusts during expressway construction and operation (HHs close to the expressway) first complained to their villages requesting for relocation, the villages then reported to township governments and then reported to county/city coordination offices. County coordination office, upon initial site visits and consultation, invited LREC for on-site verification and confirmation. Upon confirmation by LERC, county/city coordination mobilized relocation procedure with insensitive consultation. Apart from these relocation households, there is no other complaint on LAR. I. Consultation and Participation A consultation and participation plan is included in the RP Table 19) and this plan was implemented as of July The consultant visited 22 natural villages in January and July 2014 for the purpose of carrying out monitoring. All visited households confirmed that there were frequents and adequate consultation and participations in J. Conclusion and Follow-up Action The project had basically completed its LAR (99% completed), and the unforeseeable LAR in the coming seasons will be very limited, if any. Land and resettlement compensations were timely paid to APs. However, compensation for restoration of public facilities was not paid yet. APs are satisfactory with LAR of the project and restoration measures were either implemented or under implementation with good results. The monitor will submit the last semi-annual monitoring report in January 2015 and then annual evaluation reports in 2016 and During the 2017 monitoring, an end-line survey by using the baseline survey questionnaire and sample HHs, will be conducted. 2

11 I. Introduction A. Project Brief and Construction Progress 1. The proposed Longrui expressway component includes a km expressway, 6.0 km of link roads to 7 interchanges and a km Class II road. The expressway starts at the end of the Baoshan-Longling Expressway in Longling County, passes Mangshi (Mangshi City) and ends at Mengmao Township of Ruili City. A new Class II road will continue from the end of the expressway to Nongdao Border Port (China Myanmar border). The expressway and Class II road traverse 4 state farms and 42 villages/communities of 14 townships/subdistricts in Longling County, Mangshi City and Ruili City. Figure 1 shows the Longrui Expressway and the aligned counties and townships. 2. By June 2014, civil works of the expressway s subgrade had been basically completed (see Figure 2): (i) 97% of roadbed excavation done; (ii) 85% of roadbed filling finished; (iii) 98% of slope protection works done; (iv) 100% of soft foundation treatment completed; (v) 98% of bridge piles/foundation completed; (vi) 98% of culverts and crossings done; (vii) 85% of tunnel works; and etc. 3. The expressway is expected to open for traffic by the end of The project implementing agency is Longrui Expressway C. Ltd (LREC). B. This Monitoring Report 4. This semi-annual report summarizes the overall RP implementation progress and quality since the commencement of land acquisition and resettlement in 2012, and it also presents the LAR progress during Jan-July

12 II. Methodology 5. The consultants visited the project area in Jan and July 2014 July had met/interviewed about 200 persons, including APs in 22 natural villages, 5 contractors, staff of LREC, staff of prefecture and county/city coordination offices, as well as township officials. The visited natural villages, including 8 severely affected ones in the RP and 14 other ones, and the contractors are listed in the table below. 6. The methods used for monitoring included: (i) questionnaire survey of sample HHs aimed at assessing income and livelihood restorations status of APs (survey results are presented in Annex 5); (ii) site visits of natural villages and relocation HHs to check LAR progresses, resettlement houses and restoration status (survey results are given in Annex 6 and Annex 7; (iii) interviewing LREC and coordination to understand LAR progress; (iv) interviewing township officials and village leaders to assess the implementation status of restoration measures, especially technical and skill training (county level training activities are given in Annex 3); (v) interviewing contractors to understand the status of land provision for construction and employments of APs; and (vi) consultation of APs to check payments of compensations, consultation and participation during LAR, satisfactory status, etc (see Figure 8). Table 1: Natural Villages and Contractors Surveyed Target Longling Mangshi Ruili Contractor C01: Yunnan No.3Road and Bridge Engineering Co. Ltd Severely affected natural villages Natural villages Baita community Xiaomidi Baijiazhai Laolvshu Duanjiazhai Manwan C05: China Yunnan Highway & Construction Co., Ltd C10: Yunnan Highway & Bridge Co., Ltd C12: China Railway No.12 group Co., Ltd Waimangguai Manghong Batuo Zhexiang Chudonggua Tengmiechang Shuicaozi Nongnong Nongmen Layuan C20: Yunnan Yunqiao Construction Group Co. Ltd Manwan Jiele Laiwu Kanan Huoma Mangling Sample land loss HHs Sample relocation HHs 9 4

13 A. Permanent Land Acquisition III. LAR Status 7. According to LREC and the county coordination offices, over 99% of the LAR works were completed by July 2014; while remaining land acquisition, if any, will be due to unforeseeable needs. Table 2 presents the overall land acquisition progress of the project and 13,862.2mu of land had been acquisitioned by July 2014, which is 120.8% of the planned area in the RP. 8. Increased land acquisition for Mangshi and Ruili are limited and are beyond expressway alignment. However, Specifically, Longling County had almost doubled the land acquisition area(actual 2,483.4mu vs. RP 1,346.5mu), the reasons include: (i) Permanent acquisition of lands for construction access roads (354.4mu) and reestablishment of power lines (14.4mu); while Dehong Prefecture take these as temporary land occupation. (ii) Flexibility in acquisition of land outside the construction redlines in Longling, but Dehong Prefecture strictly limited its land acquisition within the construction redlines. Dehong Prefecture allowed only 5% variations between measurement survey results and actual land acquisition, while Longling County allowed for much higher variations Land Acquisition and provision to contactors for the expressway alignment itself (i.e., land within the staked construction redlines) was completed by July 2013 and this was reported in previous progress and monitoring reports, as well as in an official document of Dehong prefecture government. 4 Land acquisition beyond the expressway alignment (or right of way) after July 2014 (shown in Table 2) include: (i) 478mu for 5 service areas (see Annex 1); (ii) 354.4mu for construction access roads in Longling County; (iii) mu additional land due to design changes (see Annex 2) and for slope protection; and (v) 676.5mu for bridge and tunnel management stations, necessary activities beyond the construction redlines, etc All compensations were timely paid to affected people, yet ceiling rates were adopted wherever possible. 5 Table 2: Progress on Land Acquisition County Land Acquisition (mu) Accumulative total Plan (RP) By Aug-Dec Jan-July Area (mu) % of RP July Longling 1, , , % Mangshi 6, , , % Ruili 3, , , % Total 11, , , , % Source: LREC and county coordination offices 3 Land acquired in Dehong Prefecture was or will be fully used by the project, while some land acquired in Longling will not necessarily be used by the project. For instance, in case of acquiring 0.8mu farmland of a plot of 1.0mu, Dehong Prefecture will only acquire 0.8mu; while Longling will acquire the whole plot of 1.0mu, but the additional 0.2mu will not be used by the project. The reason is that Longling county did not strictly exclude tiny plots outside the construction redlines. 4 No.178 [2013] Document of Dehong Prefecture Government, issued on 02 August The document states that 98.56% of land provided to the contractors for construction 31 July In the case of Zhefang Township, officially classified as Zone II for land acquisition, but Zone I rates were adopted (see Table 4-1 in RP). 5

14 11. Table 3 summaries the land acquisition by type by July 2014 and it highlights that: (i) Acquisition of house plots increased to 250.4mu from the planned 60.4mu (315% of increase) due to inclusion of additional relocation households and additional house plots. Again, Longling increased the most although it has the least number of relocation households. (ii) Area of paddy land (including garden/plantation land, water ponds) increased to 4,713.0mu from planned 4,230.6mu (+11.4%). (iii) Dry farmland area increased to 6,478.0mu from the planned 955.3mu (+330%), major reason for this huge increase is that wasteland and large area of forestland were treated as dry farmland. This further implies that affected persons (APs) could benefit more from the project as compensation rates are higher for dry farmland than for forestland (CNY 5,180-22,000/mu vs. CNY 21,000-50,699/mu), but compensation budget had to increase by about CNY 50 million or so. (iv) Consequently, forestland decreased to 2,465.8mu from 3,859.9mu (-34.4%). Table 3: Land Acquisition by Type Unit: mu Land Type Longling Mangshi Ruili Total RP Actual Var. RP Actual Var. RP Actual Var RP Actual Var. House plot* Paddy Paddy land , ,204.6 land Water surface/ water works , , , Orchard/garden ,922.2 Subtotal , , , , , , Dry land Dry land , , , , , , ,149.7 Others Subtotal , , , , , , , Forestland , , , , Total Area 1, , , , , , , , , ,383.0 % 84.4% 13.2% 10.4% 20.8% Source: LREC and county coordination offices; *: Databases of county coordination offices put this item under the house demolition and resettlement component. 12. The consultants visited 5 contractors and learnt that they are happy with the LAR progress as the timely transfer of land enabled them to complete civil works of the expressway itself by June 2014 or so. As given in the table below, the final dates of land transfer from the local coordination offices were in May for four sections/contractors and in July for one section/contractor, this is in line with the LAR progress reported by LERC. Table 4: Provision of Land to Five Contractors Contractor Land Acquisition Chainage /Section (mu) Final date of land transfer 01 K K May K K May K K May K K July K K May 2013 Source: Contractors 6

15 B. House Demolition and Resettlement 13. Table 5 presents the progress on resettlement of house demolishment affected households. Again, 295 affected households by the expressway alignment were resettled by September 2013 and reported in LERC s No. 7 Progress Report submitted in October Instead of resettling 164 HHs given in the RP, as many as 295 households were relocated. LERC had prepared a due diligence report (DDR) regarding the significant increase of relocation households per ADB s requirement. The DDR, however, mixed and miscounted the number of relocation households among the project counties, but the total number of 295 is correct (see Table 5) 6. Table 5 highlights: (i) Expressway alignment affected 295 HHs were relocated by September 2103 (Figure 3 shows some of the relocation houses). (ii) Additional 2 HHs were relocated by December 2014; and these two HHs were affected by activities beyond the expressway alignment in Mangshi. Table 5: Progress on Resettlement County Relocation (HH) Accumulative total Plan Actual Relocation % of RP Revised (Sept Jan-Sept 2013* Oct-Dec 2013 Jan-July 2014 HHs Revised Plan Longling % Mangshi % Ruili % Total % Source: LERC. *: variations between DDR and actual relocation HHs were resulted from miscounting among project counties. 14. Table 6 summarizes the house demolition by type as of July The table highlights that: (i) House demolished house areas are basically in line with the revised plan. (ii) Mangshi and Ruili have some additional demolishment of houses resulted from land acquisition for service areas. Table 6: House Demolishment by Type County Plan Actual by July 2014 No. Structure Unit RP Revised (DDR) Qty % of DDR Longling 1 Brick-concrete m 2 2, ,950.4* 3, % 2 Brick-tiles m 2 2, ,087.0* 4, % 3 Earth-tiles m 2 1, ,858.2* 1, % 4 Others m % Subtotal m 2 6, , , % Mangshi 1 Brick-concrete m % 2 Brick-tiles m 2 5, , , % 3 Earth-tiles m 2 7, , , % 4 Others m 2 1, , % Subtotal m 2 13, , , % Ruili 1 Brick-concrete m 2 1, , , % 2 Brick-tiles m 2 2, , , % 3 Earth-tiles m % 6 DDR data collected through contractors by the time when databases of coordination offices were not fully established. Affected HHs in Mangshi in section for contractor NO.3, covering both Longling and Mangshi, were counted for Longling; similarly, AHs in Ruili in section for Contractor No. 16 were counted for Mangshi 7

16 4 Others m , , % Subtotal m 2 18, , , % Total 1 Brick-concrete m 2 4, , , % 2 Brick-tiles m 2 10, , , % 3 Earth-tiles m 2 9, , , % 4 Others m 2 1, , , % Total m 2 38, , , % Source: county coordination offices *: Excluded the doubled counted housing area in the DDR. 15. In addition to house demolitions and resettlement, a village temple of 77.4m 2 in Hula village of Zhefang township of Mangshi City was relocated. This village temple, next to the expressway and beyond the construction redlines, is not in the RP. The relocation of this temple was at the request of villagers. The project paid CNY 1,760/m 2 for the temple, higher than the ceiling compensation standard of CNY/1,300/m 2 for houses in the RP. C. Temporary Land Occupation and Restoration 16. Areas of temporary land occupation/borrowing were dynamic over the past years as there were short term (1-6 months) and small area of temporary borrowings from time to time; yet there were instant restorations of borrow/spoiling pits from time to time. The table below presents the temporary land occupation as per 31 July 2014: (i) Overall temporary land occupation is 1,715.0mu, accounting for 49.8% of the planned area in the RP. 7 (ii) Longling has very limited temporary land occupation because it permanently acquisitioned land for many construction access roads. (iii) Wastelands were treated either as farmland or forestland in practice; and this enabled farmers to benefit more from the project. 17. Restoration of temporary land occupation is also dynamic and it is under strict supervision of local coordination offices (land resource bureaus); and each contractors has cash deposits in the coordination office which could convert into penalty restoration is not timely or properly done. As of 31 July 2014, 1,300mu land was restored, and all restored lands were timely handed over to original users to their satisfactions. Figure 6 shows a good example of restoring temporally occupied land; in the case, 318mu low-lying land, used as spoil ground, was developed into flat farmland, including 50mu usable land. Figure 6 is an outstanding case of land restoration and it widely reported by local media (TV, newspaper and government websites), more details are given in Subsection H of Chapter VIII. Table 7: Temporary Land Occupation Impact and Restoration Land type Unit Longling Mangshi Ruili Total RP Actual RP Actual RP Actual RP Actual Current Arable land mu occupation Forest land mu , , ,290.0 Waste land mu Total mu , , , ,715.0 Land restored mu ,300 Source: LERC mu was reported by September 2013 (No. 8 Progress report of LREC). 8

17 IV. LAR Impact Status A. Affected Households and Persons 18. Table 8 and Table 9 specify the affected households and people by county. It has to be noted that about 60% of the actual farmland loss was not legally contracted farmland, but forestland/wasteland (also other land) counted as farmland during land acquisition and resettlement. 8 The two tables highlight that: Loss of farmland Loss of forestland Loss of house/ relocation (i) Total APs increased by 20.5%, this is in line with the increased total land acquisition of 20.8% (see Table 2): Longling s land acquisition increased 84.4% and APs increased 44.0%; Mangshi s land acquisition increased 13.4% and APs increased 12.0%; Ruili s land acquisition increased 10.4% and APs increased 33.7%. (ii) Farmland loss had significantly increased by 161% as a result of counting affected wasteland and some forestland as farmland (also other land), but affected people only increased by 12% (iii) Forestland loss decreased by 23%, affected people consequently decreased by 18.6%. Table 8: Affected Households and Persons Total without overlapping Impact Unit RP Actual Loss (60% of actual loss was forestland and wasteland counted as farmland) Difference Qty % mu 4, , , % AHs HH 5,490 6, % APs No. 23,315 26,110 2, % Losing over 15% of legally contracted HH 993 1, % farmland % 18.1% 17.1% Losing over 15% of contracted HH % farmland in non-peri-urban villages 9 % 5.40% 5.30% Loss mu 3, , % AHs HH 2,246 1, % APs No. 9,696 6,895-1, % Loss m 2 63,595.4* 64, % Relocation HHs HH 295* % Relocation people No. 1,296* 1, % Source: county coordination offices; *Revised plan (DDR submitted to ADB in March 2014). B. Vulnerable and Severely Affected HHs AH 5,827 7,077 1, % AP 24,772 29,859 5, % 19. Table 10 presents the vulnerable and severely affected households. As indicated, in line with increased land acquisition, the vulnerable HHs and severely affected HHs slightly increased. 8 Higher compensations that benefits APs more. 9 Severely affected HHs defined in the RP as they will lose 10% of income. 9

18 Loss of farmland Loss of forestland Loss of house/ relocation Total without overlapping Source: County coordination offices *Revised plan (March 2014). Table 9: Affected Households and Persons by County Impact Unit Longling Mangshi Ruili RP Actual RP Actual RP Actual Loss (60% of actual loss was forestland and wasteland counted as mu , , , , ,846.1 farmland) AHs HH ,428 3,714 1,428 1,631 APs No. 2,637 3,425 15,486 16,750 5,192 5,935 HH Losing over 15% (count legally contracted farmland only) % 46.1% 36.9% 13.0% % 16.4 Losing over 15% in HH non-peri-urban villages % 4.8% 4.7% 5.0% 4.8% 7.0% 6.8% Loss mu AHs HH , APs No. 1,040 1,138 5,789 3,071 2,867 3,536 Loss m 2 10,844.4* 10, ,259.8* 32, ,045.9* 20,704.3 Relocation HH 36* * * 69 Relocation people No. 142* * * 268 AH ,615 4,053 1,538 2,056 AP 2,793 4,021 16,356 18,318 5,623 7,520 Table 10: Vulnerable and Severely Affected HHs Group Unit RP Actual Variation Qty % Wubao, Disabled, and female-headed (Han and Dai HHs) Ethnic minority of less people Dibao (Han and Dai) Severely affected HHs by farmland loss in non-peri-urban villages Source: county coordination office HH % Persons HH 200: Lisu: 22 De ang: 31 Jingpo: 147 Persons 769 Lisu: 93 De ang: 123 Jingpo: : Lisu: 22 De ang: 38 Jingpo: : Lisu: 93 De ang: 153 Jingpo: % % HH % Persons % HH % Persons 975 1, % 10

19 V. Safeguarding Entitlements 20. As indicated in Table 10, the implementation of entitlements status followed the RP as of July 2014 with the following (positive) exceptions: (i) Wasteland and some forestland were counted as farmland in practice. (ii) Zone I land compensations rates (i.e., higher rates) were adopted for Zone II in the case of Mangshi city 10. (iii) The land reclamation fee under temporary land occupation is a government charge, but the RP misstated that as a fee to land owners. (iv) Compensations for special facilities were not made yet. Type of impact Permanent land acquisition Temporary land occupation House demolition Ground facilities Special facilities Scattered trees Eligibility (actual) 26,110 APs (6,165 HHs) 64,024.7m 2 of 297 relocation HHs Table 11: Implementation of Entitlements Compensation and resettlement policy in RP i) Land belongs to collective/state farms: compensation to collective and state farms; ii) Land contracted to farmers: cash compensation to farmers totally with the rates specified and announced during DMS; iii) Standing crops compensation: to owners directly with the rates specified and announced during DMS iv) state land used by business entity, government agencies/institutes: direct payment to users or management bodies i) Temporary land occupation fee: to land users yearly. The duration cannot be over two years. Once exceeded, the land use permission needs re-approval; ii) Land reclamation fee: to land owners directly; iii) Standing crops: compensation for the first year to land users with agreed rates between AH and users; iv) The land will be restored by the owner to the original condition i) Demolition compensation: to owners directly at replacement costs; ii) Each relocation HH will receive a lump sum relocation allowance of CNY50,000, to cover moving subsidy and transitional allowance. iii) Establishment of access road, water and power supply systems by local government in case of collective relocation, if any. Compensations: to property owners at replacement costs Compensations: to property owners at replacement costs, based on negotiation. Compensations: to property owners Implementation Status i) Implemented as planned;; ii) As planned, and higher rates were adopted for Zone II in Mangshi. Wasteland and some forestland were counted as farmland t iii) As planned iv) As planned i) As planned. ii) Government charge iii) As planned iv) 1,200mu restored, remaining ones will be done by the end of 2014 i) As planned ii) As planned iii) As planned in the case of Longling s Baita community. As planned Not paid yet As planned 10 Paddy land: CNY 57,278/mu (Zone I, Mangshi township) vs. CNY 29,355/mu (Zone II, Zhefang and Santaishan townships); Dry land: CNY 50,669/mu vs. CNY 24,720/mu. 11

20 Type of impact Vulnerable groups Severely affected HHs by land acquisition Eligibility (actual) Wubao, Disabled, and female-headed HHs (Han and Dai): 511 persons, 145 HHs Ethnic minority of less people: 854 persons, 221 HHs (details in Table 10) Dibao: 816 Dai and Han APs, 241 HHs 975 APs of 227 HHs from non-peri-urban villages/communities Source: county coordination offices. Compensation and resettlement policy in RP i) Village and township government help to rebuild houses in case of relocation; ii) vulnerable subsidy CNY500 each HH i) Vulnerable subsidy of CNY500 per HH; ii) Priority for technical training and unskilled jobs of the project. i) Vulnerable subsidy CNY500 of per HH; ii) Priority for technical training and unskilled jobs of the project for two labors (one is woman) of each household at least. i) Priority for technical training and unskilled jobs ii) Obtain land use right by land circulation iii) Endowment insurance on a voluntary basis in case APs lose basic living due to land acquisition. Implementation Status i) As planned i) As planned ii) As planned i) As planned ii) As planned i) As planned ii) No action iii) No one eligible in the non-peri-urban villages 12

21 A. Total Compensations Made VI. Expenses and Funding 21. As of 31 July 2014, total compensations made and formally reported to LREC by the county coordination offices are CNY million, which is 109.2% of RP budget, Table 12 presents the details. The table further highlights that: (i) Of the total compensations made, LREC and local government contributed CNY million (70.8%) and CNY million (29.2%) respectively. 11 LREC s contribution is 100.6% of the agreed CNY million among LERC, Dehong Prefecture and Baoshan Municipality governments, and 4 provincial government departments. 12 County (ii) As of July 2014, about 90% of the compensations were on land compensations, including compensations for standing crops and some attached facilities/structures, but excluding compensations for house plots. (iii) Overall compensations will mostly exceed CNY 1,000 million given that compensations for government managed power supply and telecommunication facilities are not yet made, but the facilities were restored already by the management bodies. Yet there might be some additional land acquisition and resettlement in the coming seasons. Table 12: Total Compensations Made by July 2014 Land, standing crops and attachments Compensations made (CNY million) Relocation of tombs Relocation of temple House plots, houses, transitional allowances Drinking water facilities Qty (CNY million) Total As % of RP Longling % Mangshi * % Ruili % Total % As % of actual total 89.2% 1.5% 0.0% 9.1% 0.2% As % of RP 97.4% 1.6% 0.0% 10.0% 0.2% Source: coordination offices. *: Rate of CNY 1,760/m 2 (77.4m 2 ), higher than the highest standard for houses in the RP (CNY 1,300/m 2 ). B. Total Expenses and Funding 22. Table 13 summarizes the total expenses on LAR by July 2014, including compensations made and administration expenses, as well as expenses for external monitoring. As indicated, overall costs by July 2014 are CNY million, which is 110.3% of the RP budget. The table also highlights that: (i) Of the total costs of CNY million, LREC and local government contributed CNY 11 LREC s contribution excludes administrative expenses for the project counties. 12 An agreement on LAR was made among Dehong Prefecture Government, LREC and 4 provincial government departments in March The agreement stated that LREC will CNY million for Dehong Prefecture on LAR, and exceeding budget will be covered by Dehong Prefecture Government. A similar agreement was also made among Baoshan Municipal Government. LERC and the 4 departments; the agreed contribution of LREC for Longling section is CNY million. 13

22 million (70.2%) and CNY million (29.8%) respectively. LREC s contribution of CNY million is 101.2% of RP budget. (ii) Of the total costs occurred, 15.4%, 40.1%, 39.3% and 5.2% were spent in 2011, 2012, 2013 and 2014 receptively. (iii) LREC s contribution to total costs of 69.9% for Long County is almost identical to the 70.0% for Dehong Prefecture. Table 13: Costs and Funding Cost (CNY million) Year Longling County Dehong Prefecture Total LREC Cost LERC Gov t Cost LREC Gov t Total LREC Gov t Jan-July Total % 69.9% 30.1% 100.0% 70.0% 30.0% 100.0% 100.0% 70.2% 29.8% Total as % of RP 128.8% 108.2% 110.3% C. LREC s Contribution 23. Table 14 summarizes the contribution of LREC on LAR for Longling County and Dehong Prefecture year by year; while detailed disbursement records are given in Annex 3. As shown in the table, over 99% of LREC s contribution (CNY million out of CNY million) was made before 31 December In addition to the direct contributions, LREC also lent CNY 20.0 million to Longling County in June 2013 for the sake of quick completion of LAR for the expressway alignment (see Annex 3). Table 14: Fund Transfer Records from LERC to Coordination Offices Year Accumulative Transfer (CNY million) Total Longling County Dehong Prefecture Qty (CNY mil) % By % By % By % By July % Total % As % of RP budget* 89.9% 75.8% 77.4% As % of actual costs Source: LREC; *: CNY million for Longling; CNY million for Dehong Prefecture (Mangshi: CNY million, Ruili: CNY million) D. Funds Flow 24. The funds flow exactly followed the chart defined in RP (see Figure 9). Specifically, the compensation payments to APs followed the procedures stipulated in the RP: (i) Before February 2012: Interviews, meetings, disclosure of project information including resettlement information, notice on cut-off date; (ii) February-May 2012: detailed measurement surveys in the presence of affected household, co-signing of DMS results by surveyors and affected households. (iii) June 2012 onwards: continued consultations, land acquisition and relocation agreements between affected households and County/city Coordination Office, and township and village authorities endorse the agreements with signatures and stamps; 14

23 (iv) Publicity of detailed compensation sheet by natural village (see Figure 7); (v) Signatures of APs on compensation sheet if there was no complaint; (vi) City/County Coordination Office directly transfer of compensations to the saving account of APs at the Yunnan Rural Credit Cooperatives in one installment within 2 weeks after the agreement (see Figure 7). LREC, Dehong Prefecture Government Longling County Government Land Resource Department Water Resource Department Forestry Department Dehong CO Longling CO Independent Monitor Power & Telecommunication Companies Water Resource Bureau Land Resource Bureau Forestry Bureau Mangshj & Ruili COs Affected HHs, entities and agencies, Figure 9: Funds Flow Chart 15

24 VII. Institutional Arrangement and Capacity 25. The actual institutional arrangements, shown in the figure below (Figure 10), are identical to that specified in the RP. This institutional arrangement, with adequate and experience staff, is very capable and had ensured: (i) Implementation of LAR in accordance with the RP. (ii) Timely acquisition and provision and land for the right of-way of the expressway (fully provided by July 2013) that enabled the basic completion of civil works by June (iii) Adequate funds for LAR activities and timely payments of compensations to APs as of 31 July (iv) Favorite compensations rates and transitional allowance to APs. 13 (v) Satisfaction of APs with the LAR work in the three project counties as of July 2014 (there is no complaint on LAR). LREC Project Resettlement Division (PRD) Dehong Prefecture Leading Group Dehong Prefecture Coordination Office External Monitor (Beijing Zhongkehongce) County Leading Group CO (Mangshi and Ruili) CO (Longling) Township Resettlement Work Groups Monitoring Village Committees, Natural Villages, Groups APs Figure 10: Institutional Arrangement 26. Given that LAR was mostly completed by September 2013, LREC had adjusted the staffing of its Resettlement Division in December 2013 and 2 full time staff remained (used to have 5-7 staff) to take charge of land acquisition and resettlement related issues, if any. Similarly, the Dehong Prefecture Coordination Office had reduced its full time staff (office positioned in LREC) from four to one since January Including: (i) counting wasteland and some forestland as farmland (i..e, higher rate); (ii) using Zone I rates for Zone II in the case of Zhefang and Santaishan townships in Mangshi; (iii) highest compensation rates of expressway projects, as of July 2014, for standing crops (CNY 20,000/mu for paddy land and CNY 5,000/mu for dry land); and (iv) high transitional allowance for relocation HHs (CNY 50,000/HH). 16

25 VIII. Resettlement and Income Restoration A. Resettlement Households 27. The relocation HHs increased to 297 by July 2014 from the planned 164 in Of the 297 HHs: (i) All affected houses were compensated at replacement costs that were evaluated and verified in the RP (see Annex 7 of the RP). (ii) Each HH got a lump sum transitional allowance of CNY 50,000, the highest the monitor had ever encountered for rural resettlement of the project kind. (iii) 296 HHs now live in self-built new houses, and 1 HH lives in an old house of his parents. 14 (iv) 281 HHs, affected by the expressway itself, resettled before 31 Dec 2013 (including the one who lives in his parents old house); and 16 HHs, affected by activities beyond the expressway alignment, resettled during Jan-March (v) No one is still transition, the one who lives in his parent s house should not be counted as in transition as he plans to build a good house in some years. (vi) The 281 HHs relocated before 2013, based previous monitoring, considered that their living conditions improved and livelihood restored. Figure 3 presents some of the relocation houses that were built before July B. Training of APs 28. A training program was prepared in the RP and actual implementations were far beyond the set target of the program (see table below). According to officials in 7 townships, 15 there is at least one person in each household who participated in the various training organized either by township technical stations or county technical line agencies. The county level line agencies include women s federation, agricultural bureau, agricultural school, etc. 29. The county level training activities are supported by the national level Sunshine Program that is further termed as training for labor transfer (i.e., transferring from farm sector to non-farm sector, and from ordinary farming to high-profit farming, etc.). Under the Sunshine Program, central government allocates CNY 500 for each trainee, and all training activities have to be fully and properly documented (such as lists of participants, training contents, duration, venue, dates, training materials, etc.). 30. More details regarding training activities for the 3 project counties in 2014 and for Ruili in 2013 are given in Annex 4; while Figure 5 presents some of the training activities. 31. Under the Sunshine Program and in the case of Ruli City, the government trained 550 labors for non-farm employment in 2013 using a budget of CNY 285,000. According to the agricultural bureau, about 100 trained labors are APs. The agricultural bureau made its follow up monitoring and found that 85% of the trained labors got employed in the secondary and tertiary sectors. Similarly, the program trained 650 labors including 250 APs in Mangshi City in In the case Longling County, the program trained 50 APs. 32. In Xinguang natural village of Mangbie village of Fengping Township alone, 202 Dai 14 This HH is from Huoma natural village of Mengmao Township in Ruili City. 15 There are the Longxin township in Longling; Mangshi, Zhefang and Santaishan townships in Mangshi, Jiexiang, Mengxiu and Nongdao townships in Ruili. 17

26 villagers were specifically trained under this program in 2014 and all the trained labors got professional certificates in the fields of cooking, house decoration, and etc.. The training for these villagers was organized by the prefecture Human Resource and Social Safeguards Bureau. 33. In Xiaomidi village of Longling county, the monitored witnessed the follow-up surveys of local reporters on the training effects on dendrobe processing in Jan Ms Zheng Xiandi in Xiaomidi village (women in Figure 4 are from Xiaomidi) told the monitor that the income from processed dry dendrobe is CNY300/kg, and an trained woman could processed as much as 0.4kg a day, while income from the equivalent amount of fresh dendrobe is only be about CNY 100. Ms Zheng Xiandi told the monitored that she earned CNY 15,000 in 2013 alone. Table 15: Implementation of Training Program No. Date Target Participants (person-time) RP Actual 1 July-Dec 2012 APs 3,000 >3,000 by county level agencies 2 Jan-Dec 2013 APs 3,000 >5,000 by county level agencies 3 Jan-July 2014 APs >4,000 by county level agencies It is 4,151 in 1,500 Annex 4. Source: county governments/coordination offices C. Employment of APs 34. All contractors were advised to give priority to APs to work as unskilled labors for the project, and they did follow this advice. About 12,756 person-months of locals were hired in 2013 by the 22 contractors, of which 58.9% or 7,510 person months of the local labors are APs. This generated an income of over CNY 18 millions for APs However, as shown in the table below, the employed APs reduced to only about 2,152 person-months during Jan-June because the needs for unskilled labors were getting less and less as civil works mostly finished. APs employed account for 34.1% of the total locals employed. Table 16: Employment of Unskilled Labors by Contractors Month Employment of unskilled labors (person-month) Total Women Ethnic minority people APs Locals Jan , ,072 Feb , ,060 March , ,217 April , May , June , Total 43,001 2,657 3,101 2,152 6, % 7.2% 5.0% 14.7% Source: quarterly progress reports of the project (April and July 2014). 36. The five contractors, listed in Table 1, hire local by local contacts as follows: (i) Contractors No.1. No. 12 and No. 20. Contractors initially contacted village heads who then organized the labors for the first time. After a couple of times, the contractors then directly contact the dependable APs for employments. The consultant leant that most of the contractors hire locals in this manner. 16 It is CNY 100 per day, 24 days a month % of local labors (2,152 out of a total of 6,309 person months of local labors), Source: quarterly progress reports of the project (April and July 2014). 18

27 (ii) Contractor No.5. A local woman is hired as cook and this woman acts as the contact person for organizing APs for employment. (iii) Contractor No. 10. Initially, some Dai women directly contacted the contractor for employment, and gradually more contacts were established. 37. To safeguard the benefits of construction workers, including APs working as unskilled labors, contractors had signed liability agreements with LREC for timely payments of wages. Yet, contractors need to submit to LREC the lists of employed persons with detailed personal information, and a sample list was presented in previous monitoring report. Figure 4 shows a group of female APs working for the project in January 2014 in Longling County D. Protection of Women's Right and Interests 38. As per RP, about 20% (10-30%) of the project s unskilled job opportunities should go to women. This target was reached for employed APs (about 50% of the employed APs are women, see also Figure 4). However, of the total employment of 43,001 person-months of unskilled labors employed during January-June 2014, only 2,657 person-months or 6.2% are women (see Table 16). In other words, female APs account for 40% of the total women employed. 39. The RP s training program (Table 15) set the target of training 7,500 person-times of APs on production and employment skills, yet the RP further defined that women trainees shall not be less than 50%. According to local officials and villagers interviewed, women actually account for over 50% of the trainees, and this phenomenon is very obvious in Figure Other interests and rights of women specified in the RP were notified to women during various consultation meetings. Such interests and rights include singing compensation agreement by both spouses if being requested; provision of equal opportunities in any income restoration actives and resettlement assistance for married in women who don t have Hukou 18 and contracted land in the affected villages. E. Support to Vulnerable Households 41. The project followed the RP for special supports to vulnerable HHs, Table 11 presents the monitoring results in the visited natural villages. Vulnerable groups Wubao, Disabled, and female-headed HHs EM of less people Dibao (poor) RP Eligibility (actual as of 31 July 2104) Wubao, Disabled, and female-headed HHs (Han and Dai): 511 persons, 145 HHs Ethnic minority of less people: 854 persons, 221 HHs (details in Table 10) Dibao: 816 Dai and Han APs, 241 HHs Table 17: Support to Vulnerable People Compensation and resettlement policy i) Village and township government help to rebuild houses in case of relocation; ii) vulnerable subsidy CNY500 each HH i) Vulnerable subsidy of CNY500 per HH; ii) Priority for technical training and unskilled jobs of the project. i) Vulnerable subsidy CNY500 of per HH; ii) Priority for technical training and unskilled jobs of the Monitoring results Not encountered in the monitoring, but county and township officials endorsed that supports were given accordingly. The Lisu HHs in Xiaomidi Natural Village in Longling County, the De ang HHs in Chudongua Village in Mangshi City, and the Jingpo HHs in Huoma and Kanan Natural Villages in Ruili City and the Jingpo HHs in Layuan in Mangshi received the subsidies. HHs in the above-mentioned villages participated in training and also got employed by the project Longling County: All Dibao received subsides in the visited natural villages, including 2 Han Dibao HHs in Manwan, 1Han HH in Baijiazhai, and 1 Han HH in Duanjiazhai. 18 Officially registered and counted member in affected village. 19