RP1665 World Bank-financed Guizhou Rural Development and Poverty Alleviation Project Resettlement Policy Framework Foreign Capital Project Management Center of Guizhou Provincial Poverty Alleviation & Development Office May 2014 Contents A. Overview of the Project ....................................................................................... 1 B. Objectives of Resettlement, Definitions and Key Principles ............................ 2 C. Preparation and Approval of the RAPs .............................................................. 4 D. Institutional and Legal Framework ..................................................................... 5 E. Implementation Process ..................................................................................... 7 F. Financial Arrangements .......................................................................................... 8 G. Public Participation and Information Disclosure .............................................. 8 H. Grievance Redress Procedure............................................................................ 8 I. Monitoring and Evaluation ................................................................................... 9 Appendix 1 Laws and Policies on LA ........................................................... 10 Appendix 2 Compensation Principles for the Project Area ......................... 11 Appendix 3 Laws and Policies on Social Security ....................................... 12 Appendix 4 Entitlement Matrix ...................................................................... 13 Appendix 5 Summary of Land Occupied for Market Construction ............. 15 A. Overview of the Project 1. The World Bank-financed Guizhou Rural Development and Poverty Alleviation Project (hereinafter, the “Project”) will be implemented on the basis of farmers’ cooperatives in order to improve the level of organization and self-development capacity of farmers, enhance their voice in industry chain development, explore new patterns of industry development, and promote local poverty alleviation. The Project covers 244 villages in 63 townships, 11 counties and 3 cities in the Wuling Mountain and Wumeng Mountain contiguous destitute regions. These counties are Zheng’an County, Wuchuan Gelao-Miao Autonomous County and Daozhen Gelao-Miao Autonomous County in Zunyi City; Nayong County, Hezhang County and Weining Yi-Hui-Miao Autonomous County in Bijie City; and Shiqian County, Sinan County, Dejiang County, Yinjiang Tujia-Miao Autonomous County and Yanhe Tujia-Autonomous County in Tongren City. There are 216,888 households in the project area, including 83,452 poor households, with a population of 847,900, including a rural population of 792,600, accounting for 93.48%; a minority population of 280,700, accounting for 33.11%, and a poor population of 281,100, accounting for 33.15%. Table 1-1 Range and Population of the Project Area Number of Affected Affected minority Affected poor City/county AHs population (0,000) population (0,000) population (0,000) Wuchuan 18404 6.65 3.99 2.11 Zunyi Zheng’an 34116 13.20 0.50 3.63 City Daozhen 8805 3.50 2.80 1.39 Total 61325 23.35 7.29 7.13 Nayong 7804 3.17 1.26 1.99 Bijie City Weining 87494 35.08 5.66 9.95 Hezhang 12111 5.29 1.80 1.37 Total 107409 43.54 8.72 13.31 Shiqian 8120 2.93 1.77 2.41 Sinan 8954 3.38 1.60 1.13 Tongren Yanhe 8969 3.19 2.13 1.29 City Yinjiang 12155 4.53 3.43 1.68 Dejiang 9956 3.87 3.12 1.17 Total 48154 17.90 12.05 7.67 Grand total 216888 84.79 28.07 28.11 2. The Project consists of 4 components: Component 1: Restructuring of agricultural sub-sectors. The objective of this component would be to develop more efficient agricultural production systems focusing on key agricultural pillar industries in each project county. This restructuring would aimed at creating or supporting larger, economically more viable and long-term sustainable production units, which are capable to use better technologies and can capture value added in the up-stream processing and marketing value chains. Component 2: Public infrastructure and services support. Specifically, the component would support investments in production road infrastructure (for example, tractor roads, field tracks or access to processing and marketing facilities), irrigation, drainage, communications, public market facilities, electricity supply and other infrastructure. 1 Component 3: Training and capacity building. The objective of this component would be to improve the understanding of the roles and responsibilities of public sector institutions, enterprises, and farmers in poverty alleviation through the development of value chains, including improved benefit sharing mechanisms. The investment would include analytical studies, policy guidelines, and the development of appraisal guidelines for public sector support in rural areas. Training would be provided for government officials in relevant line agencies, entrepreneurs, and a wide range of public sector institutions. Component 4: Project management, monitoring and evaluation (M&E). The objective of this component would be to establish an effective project management and M&E system, to ensure that coordination between project implementation agencies at all levels as well as coordination with other government programs and institutions in the sector, and to capture of implementation lessons from the project. This component would provide support to the project management offices at all implementing levels, including office equipment, transportation and technical assistance services. It would also include support to establishing and operating the project’s progress and impact M&E system. 3. The Project Development Objective would be to develop and implement models for agricultural sector restructuring and modernization, improved organizational arrangements, and strengthened public service delivery in Guizhou’s poverty stricken areas which increase rural income in an equitable and socially acceptable way. 4. The gross investment in the Project is 867.14 billion yuan, including a Bank loan of USD100 million (equivalent to 600 million yuan), and domestic counterpart funds of 257.14 million yuan, including an investment in restructuring of agricultural sub-sectors of 364.77 million yuan or 42.56% of gross investment, an investment in public infrastructure and services support of 340.33 million yuan or 39.7% of gross investment, an investment in training and capacity building of 68.35 million yuan or 7.97% of gross investment, an investment in project management and M&E of 21.35 million yuan or 2.49% of gross investment, and other costs (contingencies, interests during the construction period, early-stage LA costs) of 62.34 million yuan or 7.28% of gross investment. 5. The land occupied by the Project will be used for trading markets, cooperatives, feed warehouses, quarantine rooms, production paths, and irrigation and drainage facilities. The land occupied by the Project is scattered, and is mostly rural collective land, which can be acquired through land transfer or donation in consultation with rural residents. 6. Since the sites, sizes and impact ranges of some facilities to be constructed in some project counties have not been determined, and additional LA for expansion or relocation may be involved, the borrower has developed the Resettlement Policy Framework (RPF) of the Project in accordance with the Bank’s policy on involuntary resettlement (OP4.12) to guide resettlement activities. B. Objectives of Resettlement, Definitions and Key Principles 7. This RPF is based on OP4.12 “Involuntary Resettlement” in the World Bank Operational Manual issued in December 2001, and the overall objectives are: 2  Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs.  Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. APs should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs.  APs should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. 8. This RPF defines the principles and objectives of resettlement, and appropriate guidelines, rights, and legal and institutional framework, compensation and restoration patterns, participation characteristics, and appeal procedure for resettlement, and is used to guide compensation, resettlement and restoration matters. 9. Each RAP should be based on identifiable basic information collected, and include the following aspects:  Those whose farmland or rural houses together with housing sites is/are wholly or partly affected by the Project (permanently or temporarily);  Urban houses wholly or partly affected by the Project (permanently or temporarily);  Commercial facilities (enterprises and stores) wholly or partly affected by the Project (permanently or temporarily);  Young crops and ground attachments wholly or partly affected by the Project (permanently or temporarily). 10. The key principles and objectives of this RPF are as follows:  Acquisition of land and other assets, and related resettlement should be minimized where possible;  As of the baseline survey date, all APs are entitled to restoration measures to help them improve or at least their living standard, ability to earn income and production level; the lack of legal title to asset losses does not impede their entitlement to resettlement measures;  The resettlement measures available include: (1) residential houses and other buildings are compensated for at replacement cost free from depreciation or recovery of residual value; (2) cash or other means of compensation, such as land replacement and endowment insurance; (3) equal replacement of housing and housing sites acceptable to APs; and (4) subsidies for relocation and living;  If APs can accept the replacement of housing, housing sites and farmland, replacements should be as close to their lost land as possible;  The transition period of resettlement should be minimized, and restoration measures should be made available to APs at the project site before the preset starting date;  The acquisition plan of land and other assets, and the restoration measures offered shall be negotiated with APs repeatedly to ensure minimum interference; APs will be empowered before the preset starting date;  The existing community service and resource levels should be maintained or improved; 3  Whenever and wherever necessary, financial and material resources for resettlement and restoration must be available; the budget in the RAPs should include contingencies;  The institutional and organizational arrangements should ensure that assets and resettlement are designed, planned, consulted and implemented effectively and timely;  The implementation of the RAPs shall be supervised, monitored and evaluated effectively and timely. 11. The key principles of this RPF are as follows:  Avoiding the direct occupation of cultivated land;  Avoiding the use of land involved in reallocation;  Avoiding ecological resettlement and resettlement for poverty reduction  Avoiding the direct occupation of land transferred to existing cooperatives C. Preparation and Approval of the RAPs 12. The preparation and implementation of the RAPs (including the payment of all resettlement costs) will be the responsibility of the borrower. 13. When the affected population of the long-listed components exceeds 200, the Guizhou and county PMOs will prepare RAPs and submit them to the Bank; in addition, APs should be fully consulted so that they have a chance to participate in the design and implementation of the RAPs. 14. The RAPs will cover the following (if relevant), and anything unrelated to the Project should be specified in the RAPs:  General description of the Project;  Identification of potential impacts of the Project;  Objectives (the main objectives of the resettlement program);  Socioeconomic studies: The findings of socioeconomic studies to be conducted in the early stages of project preparation and with the involvement of potentially displaced people;  Legal framework: The findings of an analysis of the legal framework, covering the scope of the power of eminent domain and the nature of compensation associated with it, the applicable legal and administrative procedures, environmental laws and social welfare legislation, laws and regulations, and any legal steps necessary;  Institutional framework: covering the identification of agencies responsible for resettlement activities and NGOs that may have a role in project implementation; an assessment of their institutional capacity, and any steps that are proposed to enhance their institutional capacity;  Eligibility: Definition of APs and criteria for determining their eligibility for compensation and other resettlement assistance;  Valuation of and compensation for losses;  Resettlement measures: a description of the packages of compensation and other resettlement measures;  Selection, preparation and rearrangement of the resettlement site;  Supply of housing, infrastructure and social services;  Environmental protection and management; 4  Public participation and consultation, where the APs and the related communities must be included;  Integration with host populations: measures to mitigate the impact of resettlement on any host communities;  Grievance procedures: affordable and accessible procedures for third-party settlement of disputes arising from resettlement;  Organizational responsibilities;  Implementation schedule;  Costs and budget;  M&E. 15. The RAPs should be completed no later than 6 months before the starting date of resettlement, and submitted to the Bank for consideration at least 3 months before that. Only after the Bank has accepted the RAPs can compensation, resettlement and restoration activities begin. Such activities should be completed before the commencement of civil engineering. 16. When the affected population of the long-listed components does not exceed 200, the Guizhou and county PMOs will prepare abbreviated resettlement action plans (ARAPs) and submit them to the Bank; in addition, APs should be fully consulted so that they have a chance to participate in the design and implementation of the RAPs. 17. The ARAPs covers the following minimum elements:  a census survey of APs and valuation of assets;  description of compensation and other resettlement assistance to be provided;  consultations with displaced people about acceptable alternatives;  institutional responsibility for implementation and procedures for grievance redress;  arrangements for monitoring and implementation; and  a timetable and budget. 18. The ARAPs should be completed no later than 4 months before the starting date of resettlement, and submitted to the Bank for consideration at least 3 months before that. Only after the Bank has accepted the ARAPs can compensation, resettlement and restoration activities begin. Such activities should be completed before the commencement of civil engineering. D. Institutional and Legal Framework 19. The legal framework guiding the implementation of the RAPs is based on the Bank’s policy on involuntary resettlement (OP4.12), the applicable laws, regulations and ordinances of the state, Guizhou Province, and the project cities/counties. 20. The PRC has developed a complete legal framework and policy system on land acquisition, house demolition, resettlement and compensation, including the Land Administration Law of the PRC (amended on August 28, 2004). Within the state legal and policy framework, local governments have promulgated relevant local regulations and policies to manage and direct local land acquisition, house demolition, resettlement and compensation work. The city/county governments have 5 promulgated local regulations and policies in accordance with the applicable state laws and policies to manage and direct relevant local work. 21. The key laws, regulations and ordinances of the PRC used to prepare this RPF and ensure its legal validity include: 1) laws and policies on LA (see Appendixes 1 and 2); 2) laws and policies on social security (see Appendix 3); and 3) laws and policies on house demolition, including:  Regulations on House Acquisition on State-owned Land and Compensation (Decree No.590 of the State Council)  Measures for the Acquisition and Appraisal of Houses on State-owned Land (HC [2011] No.77) The latest policies will apply in practice. 22. According to the Notice of the Ministry of Land and Resources on Doing a Better Job in LA Management (MLR [2010] No.238), “All localities shall establish a dynamic adjustment mechanism for compensation rates for land acquisition, adjust compensation rates for land acquisition every 2 or 3 years depending on economic level and local per capita income growth, and improve the compensation level for land acquisition gradually.” The LA compensation rates of the Project will be fixed on this basis. 23. The purpose of preparing the RAPs is to ensure that the APs have sufficient opportunities to replace their lost assets, and improve or at least restore their income level and living standard. To realize this purpose, all APs should be identified, and it should be ensured that all APs think the remedies defined in the RAPs are rational. 24. APs losing farmland will be entitled to the following compensation and restoration measures:  The direct APs will receive land compensation fees and resettlement subsidies in full;  Where land reallocation is impossible, land-expropriated farmers must be identified. They will be provided with jobs with a remuneration level at least equivalent to their lost income, or receive a resettlement subsidy at 4-6 times the average annual output value (AAOV) of the acquired land in the 3 years before LA.  If land compensation fees and resettlement subsidy are still insufficient to restore the living standard of the APs, they will receive subsidies from fees on the use of state-owned land.  Land compensation fees and resettlement subsidy will be paid to the affected village committees, and used to: ⑴increase cultivated area if land is available; ⑵improve agriculture through irrigation, etc.; and ⑶develop nonagricultural income. Like fixed assets, affected young crops, fruit and commercial forests will be compensated for at replacement cost.  The lost income, young crops and infrastructure, and land restoration costs of the persons affected by temporary land occupation will also be compensated for.  Eligible APs will be included in endowment insurance for LEFs or the social security system; and  The APs will have priority in receiving job opportunities and skills training under the Project. 25. Demolished houses and attachments will be compensated for as follows, and the following restoration measures will be taken: 6  Supply of resettlement housing of equal value;  Compensation at full replacement cost;  Reconstruction or restoration of all affected facilities and services (e.g., roads, water and power supply, telephone, cable TV, schools);  The subsidy during the transition period should ensure that all assets are relocated or temporary housing is obtained. 26. The RAPs prepared should include an entitlement matrix for the APs. See Appendix 4. E. Implementation Process 27. The collective land that can be occupied without compensation as identified at the feasibility study stage, the PMOs, IAs and village committees will hold village congresses to determine the mode of land donation or reallocation in consultation with villagers, and enter into agreements accordingly. For any state-owned land occupied permanently, the county land and resources bureaus will issue construction land permits for Bank review; For any collective land acquired permanently, the following LA procedure applies: (1) The Project is approved by the provincial government; (2) The construction agency files land use applications with the municipal and county land and resources bureaus; (3) LA programs are drafted after the approval of the applications; (4) The LA programs are approved by the county governments and then submitted to the provincial and municipal governments; and (4) The LA programs are approved by the provincial and municipal governments. The LA programs will be develop in strict conformity with this RPF to provide timely and fully compensation to the AHs. 28. A number of the agricultural pillar industries to be developed under the project may require the expansion of production bases through land transfers and the use of land as share contribution in cooperative arrangements. There is a social risk that participation of households in such arrangements may not be fully voluntary and may not lead to equitable benefit sharing for vulnerable households. The RPF, therefore, should include measures to minimize such land management-related risk, including the following:  Confirmation of the principle of voluntary project participation and fair land management and share-holding arrangements in project-supported cooperatives (enterprises-cooperative arrangements);  Confirmation that households that do not want to join a production base are able to do so and are not impacted by the neighboring production base;  Promotion of short-term transparent land rentals, with clear contractual arrangements (in written form), rather than long-term land leases, so that poor households can opt out of the cooperative, especially in cases where migrant family members return to the village;  During project implementation, joint prior Bank/Guizhou PMO review of all land leasing and management arrangements in the cases where cooperatives consolidate land for the establishment of production bases; and  Confirmation that shareholding arrangements that will require households to provide or transfer land to the cooperative as share will not be supported. 7 29. The RAPs should include an implementation schedule for all activities to be conducted. If necessary, compensation payment, other entitlement restoration measures (in cash or in kind) and resettlement should at least be completed one month before land acquisition. If full compensation is not paid or necessary assistance measures are not available before land acquisition, a transition subsidy should be provided. F. Financial Arrangements 30. The subproject owners will bear all costs related to land acquisition and resettlement. Any RAP consistent with this RPF must include estimated costs and a budget. Whether identified as APs at the RAP preparation stage or not, and whether sufficient funds are available or not, all those adversely affected by land acquisition and house demolition are entitled to compensation or any other appropriate relief measure. For the above reason, the budget in the RAPs should include contingencies, which are usually 10% or more of the estimated resettlement budget in order to cover contingent resettlement costs. 31. The compensation rates specified in the RAPs provide a basis for the calculation of compensation fees for resettlement, which should be fully paid to individuals or collectives losing land or other assets, and should not be deducted for any reason. The RAPs should describe by what means compensation fees are paid by the local PMOs and IAs to the affected communities/villages or residents/villagers, entities and relevant right holders. A rationale is that the fund flow should be as direct as possible with minimum intermediate links. G. Public Participation and Information Disclosure 32. The RAPs must describe all measures taken or to be taken, involve the APs in the proposed resettlement arrangements, and foster the sense of participation in livelihood and living standard improvement or restoration activities. To ensure that the APs’ opinions and suggestions are fully considered, public participation should be prior to project design and the implementation of resettlement relief measures. Public participation must run through the whole RAP planning, implementation and external monitoring process. 33. At the RAP drafting and finalization stages, the local PMOs and owners should also disclose the RAPs to the APs and the public at certain places of the project site and in certain languages. The first draft of the RAPs should be disclosed at least one month prior to Bank evaluation. The final RAPs must be disclosed again after acceptance by the Bank. 34. During the disclosure of the RAPs, this RPF was also disclosed in the project area to collect comments from the APs. H. Grievance Redress Procedure 35. Since the resettlement work is conducted with the participation of the APs, no substantial dispute will arise. However, in order to ensure that APs have a channel to file an appeal on any issue concerning land acquisition and resettlement, a grievance redress procedure must be established. 8  Stage 1: If any AP is dissatisfied with resettlement or construction, he/she may file an appeal with the village committee orally or in writing, which should make a disposition within two weeks.  Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with the county/district resettlement office after receiving such disposition, which should make a disposition within two weeks.  Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with the provincial PMO after receiving such disposition, which should make a disposition within 4 weeks.  Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may file a suit in a civil court within 15 days after receiving such disposition. I. Monitoring and Evaluation 36. The Guizhou and county PMOs will supervise and monitor the implementation of the RAPs. Supervision and monitoring results will be recorded in quarterly reports for submission to the Bank. 37. Internal monitoring and supervision:  Check implementation, including checking the baseline information, valuation of asset losses, and the implementation of compensation, resettlement and restoration rights according to the RPF and the RAPs.  Monitor if the RAP is implemented as designed and approved.  Check if the funds for RAP implementation are appropriated timely and fully, and if such funds are used in a manner consistent with the RAPs.  Record all appeals and their solutions, and ensure that appeals are handled timely. 38. Independent external monitoring: The Guizhou PMO will appoint an independent agency through public bidding to perform period external M&E on the implementation of the RAP. Such agency may be an academic or independent consulting firm, but must have qualified and experienced staff, and their terms of reference must be accepted by the Bank. 39. In adaptation to the internal supervision information and monitoring reports checked, the external M&E agency will perform a sampling survey (sampling rate: 5-20%) after 6 months of implementation of the RAP. The main objectives are:  To evaluate if the participation and compensation payment procedures, and restoration rights are implemented practically, and consistent with the RPF and the RAPs;  To evaluate if the RPF objective of improving or at least maintaining the living standard and income level of the APs has been realized; and  To gather qualitative socioeconomic impact indicators of project implementation. 40. Any issue identified during M&E shall be submitted to the Bank. The county PMOs shall find out root causes of issues, and take effective measures timely. 41. Suggestions for improving the implementation procedure of the RAPs will be proposed in order to realize the principles and objectives of this RPF. 9 Appendix 1 Laws and Policies on LA Level No. Division Policy document Effective date Real Right Law of the PRC October 1, 2007 Land Administration Law of the PRC August 28, 2004 Regulations on the Implementation of the Land Administration Law of the PRC (Decree No.256 of the State Council) December 27, 1998 Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) October 21, 2004 State / / Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) November 3, 2004 Notice of the State Council on Intensifying Land Control (SC [2006] No.31) August 31, 2006 Notice of the Ministry of Land and Resources on Developing Uniform AAOV Rates and Location-based Composite Land July 23, 2005 Prices for Land Acquisition (MLS [2005] No.114) Methods for Announcement of Land Acquisition (Decree No.10 of the Ministry of Land Resources) January 1, 2002 Reply of the Guizhou Provincial Government on Uniform AAOVs and Location-based Land Prices for LA (GPG [2009] Province 1 Guizhou December 21, 2009 No.255) 1 Bijie Announcement of the Bijie Municipal Government on Uniform AAOVs and Location-based Land Prices for LA January 1, 2010 Reply of the Zunyi Municipal Government on Uniform AAOVs and Location-based Land Prices for LA (ZMG [2009] City 2 Zunyi December 30, 2009 No.245) 3 Tongren Uniform AAOVs and Location-based Land Prices for LA in 10 Districts/Counties of Tongren City (TMG [2013] No.199) July 6, 2013 1 Weining Compensation and Resettlement Measures for LA and HD in the Urban Area of Weining County (WCG [2010] No.11) May 4, 2010 Announcement of the Bijie Municipal Government on Uniform AAOVs and Location-based Land Prices for LA January 1, 2010 2 Hezhang Notice of the Hezhang County Government on Issuing the Compensation Rates for Acquired Urban Buildings and June 21, 2013 Structures of Hezhang County (HCG [2013] No.229) Reply of the Bijie Municipal Government on the Adjustment of Location-based Land Prices for LA of Nayong County 3 Nayong September 14, 2011 (BMG [2011] No.87) Reply of the Zunyi Municipal Government on Uniform AAOVs and Location-based Land Prices for LA (ZMG [2009] 4 Zheng’an December 30, 2009 No.245) County 5 Wuchuan Notice of the Wuchuan County Government on Adjusting LA Compensation Rates (WCG [2010] No.37) May 21, 2010 Compensation and Resettlement Measures for HD on Collective Land in the Daozhen County Town (DCG [2012] No.23) April 2, 2012 6 Daozhen Measures for the Acquisition of Collective Land in the Daozhen County Town (DCG [2011] No.12) March 12, 2011 7 Shiqian Uniform AAOVs and Location-based Land Prices for LA in 10 Districts/Counties of Tongren City (TMG [2013] No.199) July 6, 2013 Uniform AAOVs and Location-based Land Prices for LA in 10 Districts/Counties of Tongren City (TMG [2013] No.199) July 6, 2013 8 Sinan Updated Uniform AAOV Rates for LA of Sinan County (SCG [2013] No.61) July 12, 2013 9 Dejiang Uniform AAOVs and Location-based Land Prices for LA in 10 Districts/Counties of Tongren City (TMG [2013] No.199) July 6, 2013 10 Yinjiang Uniform AAOVs and Location-based Land Prices for LA in 10 Districts/Counties of Tongren City (TMG [2013] No.199) July 6, 2013 11 Yanhe Uniform AAOVs and Location-based Land Prices for LA in 10 Districts/Counties of Tongren City (TMG [2013] No.199) July 6, 2013 10 Appendix 2 Compensation Principles for the Project Area 1. Compensation principles for land occupation 1.1 Compensation principles for permanent LA The land permanently occupied for the Project will be compensated for in accordance with the applicable policies. 1.2 Compensation principles for temporary land occupation If the temporary occupation of collective land is inevitable, the owners will compensate for young crops in accordance with the local policies. 1.3 Compensation principles for attachments The ground attachments and infrastructure affected by the Project will be compensated for at the local rates. 2. Compensation principles for house demolition 2.1 Demolition of rural residential houses The rural residential houses demolished for the Project will be appraised by a qualified agency based on market price. 2.2 Demolition of rural non-residential properties The rural non-residential properties demolished for the Project will be appraised by a qualified agency based on market price. 1) Compensation for buildings and structures: appraised at replacement cost 2) Compensation for machinery: appraised at replacement cost for immovable machinery; a moving subsidy paid for movable machinery 3) Compensation for young crops: based on appraisal 4) If HD results in the production suspension of any enterprise, the affected employees will receive compensation at local minimum wage standard multiplied by the number of months of production suspension, the affected enterprise will receive compensation for production suspension based on the highest monthly after-tax profit registered with the tax authority in the past 3 years, and the moving subsidy for the affected buildings and offices will be fixed based on practical conditions. 11 Appendix 3 Laws and Policies on Social Security Level No. Division Policy document Effective date Notice of the General Office of the State Council on Forwarding the Guidelines of the Ministry of Labor and Social Security State / / April 10, 2006 on Doing a Better Job in the Employment and Social Security of Land-expropriated Farmers (SCO [2006] No.29) Opinions of the Guizhou Provincial Government on Doing a Better Job in the Employment and Social Security of Province 1 Guizhou September 9, 2011 Land-expropriated Farmers (GBG [2011] No.26) Opinions of the Bijie Municipal Government on Doing a Better Job in the Employment and Social Security of 1 Bijie May 2, 2012 Land-expropriated Farmers (BMG [2012] No.21) City Opinions of the Zunyi Municipal Government on Doing a Better Job in the Employment and Social Security of 2 Zunyi February 17, 2012 Land-expropriated Farmers (ZMG [2012] No.29) 3 Tongren Measures for the Implementation of the Employment and Social Security of Land-expropriated Farmers of Tongren City July 8, 2012 1 Weining Implementation Plan for Endowment Insurance for Land-expropriated Farmers of Weining County November 23, 2013 2 Hezhang Implementation Plan for Endowment Insurance and Social Security for Land-expropriated Farmers of Hezhang County November 22, 2013 3 Nayong Supporting Policy for Land-expropriated Farmers in the Nayong County Town June 21, 2013 4 Zheng’an Implementation Plan for Endowment Insurance and Social Security for Land-expropriated Farmers of Zheng’an County November 10, 2013 5 Wuchuan Implementation Plan for Endowment Insurance and Social Security for Land-expropriated Farmers of Wuchuan County October 17, 2013 Opinions of the Daozhen County Government on Doing a Better Job in Endowment Insurance and Social Security for County 6 Daozhen June 19, 2013 Land-expropriated Farmers 7 Shiqian Implementation Plan for Endowment Insurance and Social Security for Land-expropriated Farmers of Shiqian County June 14, 2012 8 Sinan Implementation Plan for Endowment Insurance and Social Security for Land-expropriated Farmers of Sinan County March 10, 2013 9 Dejiang Implementation Plan for Endowment Insurance and Social Security for Land-expropriated Farmers of Dejiang County September 1, 2012 10 Yinjiang Implementation Plan for Endowment Insurance and Social Security for Land-expropriated Farmers of Yinjiang County June 17, 2012 11 Yanhe Implementation Plan for Endowment Insurance and Social Security for Land-expropriated Farmers of Yanhe County July 2, 2012 12 Appendix 4 Entitlement Matrix Type of impact APs Resettlement measure Entitlement 1) Collective land 1) The AHs will receive all land compensation fees and resettlement subsidies without land reallocation; or Collective 2) Attachments 2) 80% of land compensation fees will be paid to the AHs, with the remaining 20% used for public welfare. 1) Land compensation fees and In case of land reallocation, land compensation fees and resettlement subsidy will be paid to resettlement subsidy each affected group for even distribution among all households. Permanent LA Full compensation will be paid and the temporarily occupied land will be restored to the original 2) Temporary land use condition. Farmers 3) Young crops The APs will receive full compensation for young crops. 4) Social security Eligible LEFs will be entitled to social security. 5) Production and livelihood Free training and employment measures development 1).Selecting cash compensation or property swap; 2).In case of property swap, the displacer will offer resettlement housing, and be responsible for Cash compensation/property infrastructure construction; swap Demolition of 3).In case of cash compensation, compensation will be paid at replacement cost, and free residential Rural residents housing land will be offered by local governments for new house construction. houses Receiving transition and moving subsidies, and early moving reward based on local rates, and Transition and moving subsidies being entitled to successful transition Compensation for attachments Receiving compensation at applicable rates and trees 1).Selecting cash compensation or property swap; 2). In case of property swap, the displacer will assist in finding a resettlement site, and pay Cash compensation/property Demolition of compensation for all losses at replacement cost; swap non-residential Proprietors 3).In case of cash compensation, compensation will be paid at replacement cost; properties 4).Compensation for production suspension or reduction will be paid. Affected workers will receive compensation for lost wage income; unemployed workers will also Workers enjoy skills training and job referral services. 1).Receiving equal compensation for LA and HD; 2).Enjoying assistance and priority in production and livelihood development; Vulnerable 3). Enjoying assistance and priority in new house construction; All groups 4).Including five-guarantee households, the disabled, the poor and women-headed households in local social security systems, and paying minimum living security benefits to them monthly; 5).Giving priority to vulnerable groups in the development of local characteristic industries and the operation of cooperatives; 13 Type of impact APs Resettlement measure Entitlement 6).Giving priority in single-parent households and households affected by disability in land reallocation to facilitate income restoration; 1).All village committees have female members; women enjoy the same right of participation at village meetings and congresses; 2).Women’s opinions are taken into account in public opinion surveys on LA and HD; Women All 3). Women have the same right to sign LA compensation agreements and compensation vouchers as men; 4).Jobs generated at the construction and operation stages will be first made available to women, and women are entitled to local employment training and job referral. 1). Priority in resettlement and skills training; 2).Priority in receiving employment information and job selection; Ethnic All 3).Expressing opinions and proposing needs at minority consultation meetings; minorities 4).Receiving detailed explanation on applicable policies; 5) Paying special attention to vulnerable groups in minority areas, especially poor population, during resettlement Infrastructure Proprietors Restored by the construction or compensated for at replacement cost 14 Appendix 5 Summary of Land Occupied for Market Construction Number of Location Planned land Product Floor area Time of City County proposed Scope 2 Type of land area (m ) sold Township Village (mu) acquisition markets 1 Farm market 3780 Potato Caohai Town Liaoyuan 296 State-owned land 2011/7 Weining Wholesale Egg 1 580 Caohai Town Wuligang 0.87 State-owned land 2010/9 center chicken A 5000 Konjac Fuchu Xiang Fuchu 4.5 Collective construction land / Bijie B 5000 Konjac Zhuming Town Zhuwai 4.5 Collective construction land / Village-level Hezhang 5 C 5000 Potato Shuitang Town Shuichao 4.5 Collective construction land / markets D 5000 Potato Kele Xiang Kele 4.5 Collective construction land / E 5000 Walnut Kele Xiang Kele 4.5 Collective construction land / A 300 Tealeaf Tuping Xiang Linxi 0.45 Collective construction land / B 300 Tealeaf Tuping Xiang Mingxing 0.45 Collective construction land / Village-level C 300 Tealeaf Lejian Xiang Lejian 0.45 Collective construction land / Zunyi Zheng’an 6 markets D 300 Tealeaf Lejian Xiang Liaoyuan 0.45 Collective construction land / E 250 Walnut Gelin Xiang Fengguang 0.37 Collective construction land / F 250 Walnut Jianping Xiang Jianping 0.37 Collective construction land / Farm market A 2000 Plum Shazi Town Nanzhuang 10 Collective construction land / Yanhe 3 Farm market B 1800 Goat Zhongjie Xiang Zhongjie 6 Collective construction land / Farm market C 1800 Integrated Xiaojing Xiang Xiaojing 4 Collective construction land / Shiqian 1 Farm market 3500 Potato Tangshan Town Xinchang 10 State-owned land 2011/1 Tongren Sinan 1 Farm market 6600 Fruit Tangtou Town Jiaxiu 10 State-owned land 2011/2 Farm market A 2870 Integrated Muhuang Town Muhuang 27 State-owned land 2011/6 Yinjiang 2 Logistics B 4550 Logistics Xinzhai Xiang Dayun 15 State-owned land 2011/6 center 15