RP563 v14 World Bank-financed Xi’an Sustainable Urban Transport Project (Loan No.: 7558-CN) Resettlement Due Diligence Report of the Xinzhu Bus Depot Subcomponent Shaanxi Provincial Academic and Social Science Institute July 2014 Contents 1. Introduction ........................................................................................................... 1 2. Basic Information of the Subcomponent ................................................................. 1 2.1 Name .................................................................................................................... 1 2.2 Location and Size ............................................................................................... 1 2.3 LA ......................................................................................................................... 1 2.3 Overview of the Affected Area .................................................................................. 2 2.3.1 Xiaoyan Village ................................................................................................ 2 2.3.2 Xinhe Village .................................................................................................... 2 3. Preparation of Report Materials .............................................................................. 3 4. LA Impacts ............................................................................................................. 3 5. Policies, Regulations and Compensation Rates ...................................................... 5 5.1 Main Policies and Regulations Applicable to Resettlement .................................. 5 5.1.1 State Laws and Regulations ........................................................................... 5 5.1.2 Provincial Policies and Regulations ............................................................. 5 5.1.3 Municipal Policies and Regulations .............................................................. 5 5.2 Compensation Rates for Permanent LA .................................................................. 5 6. Impacts on Production and Livelihoods .................................................................. 5 6.1 Distribution of Compensation Fees ......................................................................... 5 6.2 Impacts on the APs .................................................................................................... 6 6.2.1 Impacts on Production.................................................................................... 6 6.2.2 Impacts on Quality of Life .............................................................................. 7 7. Restoration and Resettlement ................................................................................. 8 7.1 Restoration and Resettlement Measures ................................................................ 8 7.2 Social Security for LA................................................................................................ 8 8. Public Participation and Grievance Redress ............................................................ 9 8.1 Public Participation Process .................................................................................... 9 8.2 Grievance Redress .................................................................................................. 10 9. Satisfaction of the APs ......................................................................................... 10 10. Survey Conclusions ........................................................................................... 12 Appendixes: Relevant Documents and Materials....................................................... 13 ABBREVIATIONS AAOV - Annual Average Output Value AH - Affected Household AP - Affected Person FGD - Focus Group Discussion LA - Land Acquisition LEF - Land-expropriated Farmer M&E - Monitoring and Evaluation PRC - People’s Republic of China XITLP - Xi’an International Trade and Logistic Park Units Currency unit = Yuan (RMB) US$1.00 = RMB6.00 1 hectare = 15 mu 1. Introduction Urban public transport infrastructure is closely associated with people’s production and lives, and is a social welfare program. Taking the opportunity of implementation of the Bank-financed project, Xi’an Public Transport Company plans to implement Xinzhu Bus Depot subcomponent (hereinafter referred to as the “Subcomponent”) in Xi’an International Trade and Logistic Park (XITLP). The external M&E team of the Xi’an Sustainable Urban Transport Project from Shaanxi Provincial Social Science Institute was appointed by Xi’an Public Transport Company to conduct a due diligence investigation on the completed resettlement work of the Subcomponent during September-November 2013, and prepare this report. 2. Basic Information of the Subcomponent 2.1 Name Xinzhu Bus Depot subcomponent of the Xi’an Sustainable Urban Transport Project The Subcomponent has such functional zones as maintenance, fueling, parking and office. It will greatly relieve traffic pressure, improve the traffic environment, solve such problems as parking, maintenance, operation and dispatching of buses, and improve the operating reliability of buses. 2.2 Location and Size The Subcomponent is located in XITLP, north of Qinhan Avenue, west of Xihan Highway, and south of the North Railway Ring Road, being the junction of Baqiao District, Lintong District and Gaoling County. Planned Subway Line 3 is close to the Subcomponent. See Figure 1. The Subcomponent has a floor area of 103 mu. After its completion, it will undertake the primary, secondary and tertiary maintenance of 400 buses, and also the secondary and tertiary maintenance of some social vehicles, and can accommodate 350 buses. 2.3 LA LA for the Subcomponent will affect Xiaoyan and Xinhe Villages, Baqiao District. The XITLP Land Reserve Center has appointed the Xinhe Sub-district Office, Baqiao District to conduct permanent LA, which begun in October 2010 and was completed at the end of 2011. The LA approval formalities for this plot have been completed. The Request for the 17th Batch of Farmland Conservation and Land Acquisition of Xi’an City in 2010 was approved by the provincial government on April 26, 2012 (see Appendix 1). 1 Figure 1 Location Map of the Subcomponent 2.3 Overview of the Affected Area 2.3.1 Xiaoyan Village Xiaoyan Village has 3 groups and over 290 households with about 1,000 persons. It formerly had over 1,700 mu of cultivated land, about 1.8 mu per capita, higher than the national and provincial averages. After several consecutive years of LA, as of August 2013, Xiaoyan Village had over 600 mu of remaining collective land, 0.6 mu per capita. Xiaoyan Village is a skilled village, where villagers’ income is higher than that of surrounding villages. Villagers mostly do construction or skilled jobs, such as carpentry, bricklaying and electric welding. In addition, there are two private enterprises in the village, namely Yaxing Strawberry Garden and Runfeng Fertilizer Plant. Yaxing Strawberry Garden has a floor area of 40 mu, and operates in the mode of company + household, where rural households may become shareholders through bank lending or work here, and earn income from wages, expenses and profit distribution. Any rural household may lease land to the garden at 1,500 yuan/mu per annum, with a growth of 10% every 3 years. Yaxing Strawberry Garden has a workforce of about 60 in the busy season. Since labor intensity is low and jobs are unskilled, many middle-aged and elderly villagers elect to work here. In addition, about 30 villagers work at Runfeng Fertilizer Plant and earn income stably. 2.3.2 Xinhe Village Xiaoyan Village has 5 groups and over 850 households with about 3,100 persons. It has over 2,800 mu of remaining cultivated land, 0.9 mu per capita. It is learned from the FGD that villagers grow wheat and other food crops mainly. Since 2012, some villagers have grown landscaping trees and about 6 households grown grape. However, agricultural income is low, which is about 1,500 2 yuan/mu for food crops, which is almost equal to annual agricultural expenses. For this reason, villagers are not enthusiastic about farming, and household income is from outside employment mainly. Male laborers deal with transport and construction mainly. Over 200 households in the village have bought trucks to transport materials for nearby construction sites (in XITLP, the textile center and Weiyang District mainly), while female laborers serve as waiters and cleaners mainly. The per capita annual income of villagers is about 8,000 yuan. 3. Preparation of Report Materials At the report preparation stage, the external M&E team collected relevant information from the XITLP LA and HD Management Office, and Xinhe Sub-district Office. The external M&E team also collected relevant information from Xi’an Public Transport Company and its 8th branch. The external M&E team also visited two groups of Xiaoyan and Xinhe Villages, and conducted fieldwork in the form of FGD (with the village head, accountant and AHs), questionnaire survey, and in-depth interview. Since villagers work outside at ordinary times, not many villagers stay at home. The external M&E team has managed to include 26 households in the survey, and conducted in-depth interviews with 10 of them, with a sampling rate of 72.2%. 4. LA Impacts The land occupied by the Subcomponent was formerly reserved land of XITLP. The LA and resettlement work was completed by the end of 2011. Permanent LA for the Subcomponent affects Xiaoyan and Xinhe Villages. At the beginning, XITLP acquired 121.7067 mu of collective land in Xiaoyan Village and 398.4480 mu in Xinhe Village for the Huacheng Logistics Project. Since the Subcomponent has to be relocated, XITLP and Xi’an Public Transport Company have agreed to set aside 103 mu of land from the Huacheng Logistics Project as the new site of the Subcomponent, including 79.771 mu of former land of Xiaoyan Village and about 23.229 mu of former land of Xinhe Village, as shown in Figure 2. 3 Figure 2 Location Map of the Subcomponent 103 mu of collective land in Xiaoyan and Xinhe Villages, Baqiao District will be occupied permanently for the Subcomponent, and no house demolition is involved, affecting 30 households with 135 persons in Xiaoyan Village and 6 households with 30 persons in Xinhe Village. See Table 1. Table 1 Summary of DMS Results Affected area Acquired land area (mu) House demolition AHs Affected population Xinhe Village 23.229 None 6 30 Xiaoyan Village 79.771 None 30 135 Total 103 36 165 The proportion of agricultural income to household income is low, and the main income sources of villagers are wages and nonagricultural operations, permanent LA will affect villagers’ production and livelihoods slightly in general. 4 5. Policies, Regulations and Compensation Rates 5.1 Main Policies and Regulations Applicable to Resettlement 5.1.1 State Laws and Regulations Land Administration Law of the PRC (effective from August 28, 2004); Regulations on the Implementation of the Land Administration Law of the PRC (effective from August 28, 2004); Urban Real Estate Administration Law of the PRC (effective from January 1, 1995) 5.1.2 Provincial Policies and Regulations Measures of Shaanxi Province for the Implementation of the Land Administration Law of the PRC (effective from January 1, 2000) Measures for the Transfer of the Right to Use State-owned Land of Shaanxi Province Detailed Rules of Shaanxi Province for the Implementation of the Basic Farmland Protection Regulations (effective from April 4, 1996) Uniform Land Acquisition Measures of Shaanxi Province for Construction Projects (effective from March 1, 2002) 5.1.3 Municipal Policies and Regulations Fourth Urban Master Plan of Xi’an City 5.2 Compensation Rates for Permanent LA The external M&E team has learned that compensation for permanent LA includes compensation for land and ground attachments, and resettlement subsidy. According to the new LA compensation rates of Baqiao District, the rate of land compensation and resettlement subsidy in XITLP is 59,859 yuan/mu. According to the Implementation Plan for Land Acquisition for the XITLP Project, there are 4 levels of compensation for ground attachments, namely 5,000 yuan/mu, 6,000 yuan/mu, 8,000 yuan/mu and 9,000 yuan/mu. Table 3 Compensation Rates for Permanent LA Land compensation Compensation for ground attachments Compensation rate and resettlement Compensation for permanent LA Type of ground attachments subsidy (yuan/mu) rate (yuan/mu) (yuan/mu) 59,859 Newly or not cultivated 5,000 64,859 59,859 Crops at seedling stage 6,000 65,859 59,859 Crops at early maturation stage 8,000 67,859 59,859 Crops at maturation stage 9,000 68,859 The external M&E team thinks that the compensation rates for permanent LA comply with the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), Uniform AAOV Rates and Location-based Composite Land Prices for Land Acquisition of Shaanxi Province (SPG [2010] No.36), Notice of the Baqiao District Government on Issuing the Location-based Composite Land Prices for Land Acquisition of the District (BDG [2010] No.47), and the Implementation Plan for Land Acquisition for the XITLP Project (BDOG [2009] No.121) (see Appendix 2). 6. Impacts on Production and Livelihoods 6.1 Distribution of Compensation Fees 5 All compensation fees for the 103 mu of permanently acquired land in Xiaoyan and Xinhe Villages have been paid as follows: First, the Xinhe Sub-district Office disbursed LA compensation fees to the collective accounts of Xiaoyan and Xinhe Villages, and then LA compensation fees were paid to the AHs based on their acquired land areas in the presence of the relevant staff of the Xinhe Sub-district Office, village officials and AHs. In addition, LA compensation fees for the 10 mu of collective land in Group 3 of Xinhe Village acquired for the Subcomponent were distributed among the population of the Group evenly in the form of check, as detailed in Appendix 6. Ground attachments are compensated for differently in Xiaoyan and Xinhe Villages, where compensation fees for ground attachments in Xiaoyan Village are paid in cash, while those in Xinhe Village paid by the Xinhe Sub-district Office in the form of check. The external M&E team has learned that all the 20 AHs in Xiaoyan Village and 6 AHs in Xinhe Village received LA compensation fees fully in 2012. Appendix 5 is the list of distribution of LA compensation fees in Xinhe Village, which can prove that the AHs did receive LA compensation fees. 6.2 Impacts on the APs 6.2.1 Impacts on Production In order to learn the impacts of permanent LA on the AHs’ income, the external M&E team conducted a survey on the 20 AHs in Xiaoyan Village and 6 AHs in Xinhe Village. The income sources of the AHs include food crop cultivation, small business investment and outside employment in the slack season, where the proportion of agricultural income to household income is low, and the main income sources of villagers are wages and nonagricultural operations. After LA, except households specializing in cultivation, the proportion of agricultural income to household income will be lower for most of the AHs, and some of them will no longer deal with agriculture. LA has released more laborers from farm work to get employed, and some AHs will use compensation fees for business investment or expanded operations. In Xiaoyan Village, the income of all the 20 households has risen, where that of one household has risen significantly. In Xinhe Village, the income of all the 6 households has risen from 612 yuan to 10,067 yuan. Table 4 Income Comparison of the AHs in Xiaoyan Village before and after LA Before LA (2011), yuan After LA (2012), yuan Variation of Wage and Wage and Name Agricultural Gross Agricultural Gross income business business income income income income (yuan) income income XXC 7500 50000 57500 3500 60000 63500 XTR 6240 60000 66240 3250 65000 68500 XTL 6200 40000 46200 3000 60000 63000 XGQ 8000 35000 43000 3750 45000 48000 XJL 12500 30000 42500 4000 50000 54000 SYE 4680 30000 34680 3500 35000 38800 XCR 5000 20000 25000 3200 25000 28200 LEH 6500 35000 41500 3000 50000 53000 DCL 6000 50000 56000 3000 70000 73000 YL 6000 60000 66000 3000 70000 73000 XZH 8000 40000 48000 3750 50000 53750 XKL 6000 30000 36000 3200 45000 48200 XYQi 6000 25000 31000 3000 50000 53000 XYK 10000 15000 25000 6000 51000 57000 XYQu 5000 50000 55000 0 50000 50000 6 XJQ 4000 24000 28000 0 60000 60000 LJM 10000 30000 40000 40000 20000 60000 XGQ 3000 10000 13000 1500 60000 61500 CSE 8000 45000 53000 3000 55000 58000 XLS 2000 250000 252000 0 270000 270000 Note: In the above table, gross income excludes LA compensation fees. Table 5 Income Comparison of the AHs in Xinhe Village before and after LA Before LA (2011), yuan After LA (2012), yuan Variation Wage and Wage and of Name Agricultural Gross Agricultural Gross business business income income income income income income income (yuan) LXQ 5400 40000 45400 2160 50000 52160 GCQ 5400 45000 50400 2160 60000 62160 LSL 6750 50000 56750 2700 60000 62700 WBY 5400 35000 40400 2160 40000 42160 HHZ 4050 30000 34050 1620 40000 41620 CTP 6750 40000 46750 2700 50000 52700 6.2.2 Impacts on Quality of Life In Xiaoyan Village, the expenditure of 6 AHs has dropped, in which the expenditure drop of 5 AHs is attributed to the drop of agricultural expenses, and the expenditure of one AH has dropped by over 10,000 yuan due to the drop of agricultural and educational expenses, while the expenditure of 14 AHs has risen, in which the expenditure of 9 AHs has risen by over 10,000 yuan. Among these 9 AHs, 8 have used LA compensation fees to invested in or expand nonagricultural operations, and one has used LA compensation fees to invested in grape cultivation. In Xinhe Village, the expenditure of one AH has dropped slightly, while that of the other 5 AHs has risen slightly. Table 6 Expenditure Comparison of the AHs in Xiaoyan Village before and after LA Before LA (2011), yuan After LA (2012), yuan Variation of Business Business Name Agricultural Living Gross Agricultural Living Gross expenditure investment investment expenses expenses expenditure expenses expenses expenditure (yuan) expenses expenses XXC 7500 0 30000 37500 3500 0 35000 38500 1000 XTR 6240 0 40000 46240 3250 0 40000 43250 -2990 XTL 6200 0 43000 49200 3000 20000 45000 68000 18800 XGQ 8000 0 30000 38000 3750 0 30000 33750 -4250 XJL 12500 0 28000 40500 4000 30000 30000 64000 23500 SYE 4680 0 20000 24680 3500 0 25000 28500 3820 XCR 5000 0 20000 25000 3200 0 20000 23200 -1800 LEH 6500 0 30000 36500 3000 10000 35000 48000 11500 DCL 6000 20000 30000 56000 3000 30000 35000 68000 12000 YL 6000 0 40000 46000 3000 0 45000 48000 2000 XZH 8000 0 35000 43000 3750 0 38000 41750 -1250 XKL 6000 0 30000 36000 3200 0 35000 38200 2200 XYQi 6000 0 25000 31000 3000 50000 30000 83000 52000 XYK 10000 0 15000 25000 6000 30000 20000 56000 31000 XYQu 5000 10000 22000 37000 0 10000 25000 35000 -2000 XJQ 4000 0 40000 44000 0 0 30000 30000 -14000 LJM 10000 0 30000 40000 15000 0 30000 45000 15000 XGQ 3000 0 20000 23000 1500 0 25000 26500 3500 CSE 8000 5000 38000 51000 3000 20000 40000 63000 25000 XLS 2000 60000 70000 132000 0 70000 80000 150000 18000 7 Table 7 Expenditure Comparison of the AHs in Xinhe Village before and after LA Before LA (2011), yuan After LA (2012), yuan Variation of Name Agricultural Living Gross Agricultural Living Gross expenditure expenses expenses expenditure expenses expenses expenditure (yuan) LXQ 5400 40000 45400 2160 45000 47160 1760 GCQ 5400 35000 40400 2160 40000 42160 1760 LSL 6750 40000 46750 2700 45000 47700 950 WBY 5400 35000 40400 2160 38000 40160 -240 HHZ 4050 30000 34050 1620 35000 36620 2570 CTP 6750 45000 51750 2700 50000 52700 950 One reason for expenditure rise is to use LA compensation fees for business investment, which shows that LA has affected the AHs’ production and livelihoods positively, and the other reason is increased living expenses, which reflects the improvement of their quality of life to some extent. During the survey, the external M&E team found that the APs were generally richer, and compensation fees could relieve their financial pressure if they could not find suitable jobs for the moment. In addition, the Subcomponent will make it possible to set up bus routes, thereby improving the local traffic environment and reducing traffic costs. In general, LA has not reduced the quality of life of villagers, but has become an opportunity to improve their living environment and quality of life. 7. Restoration and Resettlement 7.1 Restoration and Resettlement Measures During the development of XITLP, its departments and companies, and resident enterprises are encouraged to recruit LEFs to do property management and environmental sanitation jobs. The Xinhe Sub-district Office offers employment training in the affected village groups, including skills and housekeeping service training, etc. The officials of Xiaoyan and Xinhe Villages also encourage LEFs to get employed by village-run enterprises and cooperatives, and offer free skills training. Local residents have restored or improved their production level and living standard through construction, transport, services, business startup, etc. In the meantime, the Subcomponent will generate many opportunities to benefit local residents. First, the Subcomponent will generate job opportunities for local residents during construction and after completion; second, the Subcomponent will attract more people quickly, and promote the development of relevant service industries, such as catering, logistics and retail; finally, the Subcomponent will provide more convenient traffic conditions for local residents to do business or work in the urban area. 7.2 Social Security for LA The external M&E team has learned that the social security program of XITLP developed pursuant to the Notice of the Xi’an Municipal Government on Issues concerning Endowment Insurance for Newly Land-expropriated Farmers has been approved by the Shaanxi Provincial Government and the Xi’an Municipal Government. As show below, social endowment insurance premiums for LEFS will be fully disbursed to the Xinhe Sub-district Office. However, since endowment insurance for LEFs has not been implemented in Baqiao District, the external M&E team will follow this up. 8 Figure 11 Checklist of Endowment Insurance for LEFs in Xiaoyan Village Figure 12 Checklist of Endowment Insurance for LEFs in Xinhe Village 8. Public Participation and Grievance Redress 8.1 Public Participation Process 9 During LA implementation, the rights of information, participation, supervision and appeals of the APs were fully respected. Before LA, village congresses on LA were held in Xiaoyan and Xinhe Villages, and the LA compensation policies were communicated to all villagers in the form of announcement. 8.2 Grievance Redress As of October 2013, the Xinhe Sub-district Office, Baqiao District had received no appeal or grievance. 9. Satisfaction of the APs The in-depth interviews with 10 AHs show that the APs highly support the Subcomponent, and are fairly satisfied with the LA compensation rates and resettlement activities. They think that the Subcomponent will improve the local traffic environment greatly, and make it more convenient for them to work outside. The villagers of Xiaoyan and Xinhe Villages are not affected severely by LA. After permanent LA, some villagers will have more time and effort to work outside and earn more money. Some villagers will deal with nonagricultural operations with the aid LA compensation fees, such as store investment and transport operations, to increase household income. However, with the loss of land, they also worry about old age support and expect to cover endowment insurance for LEFs as soon as possible. Interviewee 1: XYQi, villager of Xiaoyan Village, male, Tel: 13572030418, family size: 5, all being of agricultural status, including two laborers, including his wife who does housework without being employed, he (the only working family member), an old person, and two children at high school. The family’s land is used to grow such food crops as wheat and corn. Before LA, employment was the main income source, with annual income of about 31,000 yuan; after LA, XYQi has used LA compensation fees for business investment and purchased a small fueling truck (just like a mobile gas station), which is quite profitable. In 2012, the family’s gross annual income was about 53,000 yuan, including agricultural income of 3,000 yuan and fueling income of 50,000 yuan; gross annual expenditure was 83000 yuan, including fueling truck purchase expenses 50,000 yuan (from LA compensation fees), agricultural expenses of 3,000 yuan, living expenses of 20,000 yuan, educational expenses 8,000 yuan, and medical expenses 2,000 yuan. XYQi thinks that LA has improved his quality of life because he has money for business investment. Interviewee 2: XYK, villager of Xiaoyan Village, male, Tel: 15991344636, family size: 6, including XYK and his wife, son, daughter-in-law, and grandson at primary school, in which he and his son are working. XYK deals with construction in the district. The family relied on employment before LA; after LA, he used compensation fees to open a barber ’s shop for his son and deposited the balance with a bank, while the family’s remaining land is used to grow such food crops as wheat and corn. In 2012, the family’s annual income was about 57,000 yuan, including agricultural income of 6,000 yuan, barber ’s shop income of 36,000 yuan and employment income of 15,000 yuan; gross annual expenditure was 56,000 yuan, including agricultural expenses of 6,000 yuan, living expenses of 20,000 yuan, and barber ’s shop opening expenses of 30,000 yuan (from LA compensation fees). XYK thinks that LA has improved his quality of life because he has money for business investment. Interviewee 3: XJQ, villager of Xiaoyan Village, male, Tel: 18729202630, family size: 4, including XJQ and his wife, two sons (22 and 18 years each). The family formerly had land, used to 10 grow such food crops as wheat and corn. With the complete loss of land after LA, his two sons have begun to work outside. XJQ deals with construction in the district, and his wife does housework without being employed. Currently, the family’s annual income is about 60,000 yuan, from wages of XJQ and his sons mainly; gross annual expenditure was about 30,000 yuan, consisting mainly of the couple’s living expenses. XJQ says that with the employment of his sons, household income has risen significantly and quality of life has also improved. LA compensation fees have been used to build houses for his sons. Since food crop cultivation is not profitable, LA has hardly affected the family’s livelihood. Interviewee 4: XYQu, villager of Xiaoyan Village, male, Tel: 13772129036, family size: 5, including XYQu and his wife, an old person, and two children at high school and primary school respectively. The family formerly had much land, used to grow food crops mainly, but without agricultural income. XYQu and his wife run a store for over 20 years, and would do odd jobs outside in the slack season, and the family’s annual income was about 50,000 yuan before LA. In 2012 (after LA), the family’s gross annual income was about 50,000 yuan, including store operating income of 30,000 yuan, employment income of 20,000 yuan, and bank interests on compensation fees of thousands of yuan; gross annual expenditure was about 35,000 yuan, including store operating expenses of 10,000 yuan, living expenses of 20,000 yuan and educational expenses of 5,000 yuan. XYQu has used part of LA compensation fees to cover living expenses and deposited part with a bank. XYQu thinks that although his income has not risen, he is richer and enjoys better quality of life. He plans to expand the store in the future. Interviewee 5: LJM, villager of Xiaoyan Village, male, family size: 6, including LJM and his wife, two old persons, and two sons (at technical secondary school and primary school respectively). Before LA, the family cultivated such food crops as wheat and corn mainly; after LA, LJM has begun to grow grape and dealt with construction, while his wife has dealt with artwork production. Currently, the family’s annual income is about 60,000 yuan, 28,366 yuan higher than before LA, including agricultural income of 40,000 yuan and employment income of 20,000 yuan; gross annual expenditure was 40,000 yuan, including agricultural expenses of 10,000 yuan, living expenses of 20,000 yuan and educational expenses of 10,000 yuan. LJM plans to deposit LA compensation fees with a bank for his children’s future education or marriage. LJM thinks that LA has not had any significant impact on the family’s production and livelihood. Interviewee 6: XLS, villager of Xiaoyan Village, male, family size: 5, including XLS and his wife, and 3 children, including two daughters and one son. His elder daughter deals with beauty care. XLS bought an excavator for construction in 2006, and runs it independently and profitably. Before LA, the family’s land was used to grow food crops mainly, with annual agricultural income of about 2,000 yuan; after LA, the land was used to grow trees and seedlings, which were not sold, so there was no agricultural income or expenditure in 2012. In 2012, the family’s gross annual income was about 270,000 yuan, 10,000 yuan higher than before LA, including excavator income of about 200,000 yuan, and his elder daughter ’s employment income of 70,000 yuan; gross annual expenditure was about 150,000 yuan, including living expenses of 60,000 yuan, excavator expenses of 70,000 yuan and educational expenses of 20,000 yuan. XLS says that all family members have covered cooperative medical insurance and endowment insurance, and has invested part of LA compensation fees in excavator operations and deposited the balance with a bank. LA has not affected his livelihood adversely; on the contrary, he has more money for investment. Interviewee 7: CSE, villager of Xiaoyan Village, female, Tel: 18710608072, family size: 5, including CSE, his son, daughter-in-law, and two grandsons at school. The family’s remaining land 11 is used to growth such food crops as wheat and corn. In addition, his son and daughter-in-law do small commodity business on the light industry market. Currently, the family’s annual income is about 58,000 yuan, including agricultural income of 3,000 yuan and small commodity business income of 55,000 yuan; in 2012, gross annual expenditure was 63,000 yuan, including agricultural expenses of 3,000 yuan, small commodity business investment of 20,000 yuan, living expenses of 20,000 yuan and educational expenses of 20,000 yuan. His son and daughter-in-law have done small commodity business for over ten years. After LA, LA compensation fees will be used to expand business and build a house. CSE says that the workplace of his son and daughter-in-law is too distant from the village, bus fare is high, bus frequency is low, and travel time is low, which is very inconvenient. After the completion of the Subcomponent, they will go to work much more easily and the family’s quality of life will improve. Interviewee 8: XYM, villager of Xiaoyan Village, male, Tel: 13572128598, family size: 4, including XYM and his wife, son and daughter-in-law. The family had much land, used to grow food crops mainly. After LA, the family has only 1 mu of land, which has been left unused. His is too old to find a good job, and his son is the only working family member (dealing with construction). Currently, the family’s annual income is entirely from his son’s employment income of 60,000 yuan; gross annual expenditure is 21,500 yuan, including living expenses of 20,000 yuan and medical expenses of 1,500 yuan. XYM says that crop cultivation does not make money but is enough for the family’s daily consumption, and LA compensation fees will be used for his son’s marriage and house decoration. He thinks that LA has not affected the family, but is concerned about old age support. Interviewee 9: XBY, villager of Xiaoyan Village, male, Tel: 18710684953, family size: 4, XBY (the only working family member, dealing with construction) and his wife, and two children (at college and primary school respectively). The family grows such food crops as wheat and corn for self-consumption only. Currently, the family’s annual income includes XBY’s employment income of 20,000 yuan, and bank interests on compensation fees of thousands of yuan; gross annual expenditure was 30,000 yuan, including living expenses of 10,000 yuan and educational expenses of 20,000 yuan. XBY has deposited LA compensation fees with a bank as the educational fund for his children, and is concerned about social security due to the complete loss of land. Interviewee 10: SJD, villager of Xinhe Village, Tel: 18702920237. SJD is the accountant of Xinhe Village. Many villagers in Xinhe Village deal with construction or transport with their own vehicles, which is quite profitable. A driver ’s school has leased premises of the village committee to provide employment training to villagers while making profits. Some women do housework at home, and some serve as restaurant waiters and cleaners. The village has over 3,100 persons and 2,800 yuan of land, 0.9 yuan per capita, all self-cultivated. In 2012, about 400 yuan of land in the village was acquired for XITLP at a time, including 23.229 yuan of land for the Subcomponent. Compensation fees were paid fully in 2012. Currently, there are only two bus routes between the village and urban area, with long intervals and expensive fares, which is very inconvenient for villagers to go out. The Subcomponent is highly supported by villagers because it will bring more job opportunities to them. 10. Survey Conclusions 1) The compensation rates and principles for permanent LA of the Subcomponent comply with the applicable state, provincial and municipal policies and regulations, and the Bank’s policy on involuntary resettlement. 2) All APs in Xiaoyan and Xinhe Villages have received LA compensation fees. 12 3) The production level and living standard of all the 26 AHs have been restored to the pre-LA levels, and their income has risen to varying degrees. 4) After LA, the APs will have more time to get employed, and invest LA compensation fees in nonagricultural operations, thereby increasing household income effectively. The Subcomponent will become an opportunity to improve the living environment, traffic environment and quality of life of the APs. Therefore, the APs support permanent LA and the implementation of the Subcomponent. Although XITLP has disbursed social endowment insurance premiums for LEFS to the Xinhe Sub-district Office fully, endowment insurance for LEFs has not been implemented in Baqiao District, and the external M&E team will follow this up (see the Appendixes). Appendixes: Relevant Documents and Materials 1. Land approval documents of the Shaanxi Provincial Government 13 2. Land compensation rates 3. Approved endowment insurance program 14 15 4. Note on social endowment insurance for LEFS 5. List of distribution of LA compensation fees in Xinhe Village 16 398.448 mu of land in Xinhe Village has been acquired for XITLP, in which the Subcomponent occupies over 20 mu only. Only 6 households are affected by the Subcomponent, namely the households of LXQ, GCQ, LSL, WBY, HHZ and CTP. 6. Certificate of even distribution of LA compensation fees among population in Group 3 of Xinhe Village 17 18 19 20