RP590 V2 REV World Bank Financed Liaoning Medium Cities Infrastructure Project (LMCIP)/Energy Component Resettlement Policy Framework Liaoning Urban and Rural Construction and Planning Design Institute June, 2014 World Bank Financed Liaoning Medium Cities Infrastructure Project (LMCIP)/Energy Component Resettlement Policy Framework President Xing Ming Vice President Che Li General Engineer Wang Guoqing Director Dong Youju Persons in Charge Qin Dayong Wang Xianming Team Member Guo Weijiang Zhao Xiyuan Liu Yimin Yan Guanhua Sun Yunquan Yan Ming Liaoning Urban and Rural Construction and Planning Design Institute June, 2011 Contents A.Project Introduction ........................................................................................ 1 B.Principles and Objectives .............................................................................. 3 C.Process for Preparing and Approving Resettlement Plans ............................ 6 D.Estimated Population Displacement .............................................................. 8 E.Legal Framework ........................................................................................... 8 F.Compensation Standard .............................................................................. 10 G.Rehabilitation Measures .............................................................................. 18 H.Organizational Procedures .......................................................................... 19 I.Implementation Process ............................................................................... 20 J.Grievance Redress Mechanisms ................................................................. 20 K.Funding Arrangement .................................................................................. 20 L.Participation and Consultation ..................................................................... 20 M.Monitoring ................................................................................................... 21 1 A. Project Introduction 1. The objective of the Project is to assist the Borrower in supporting the Project Cities in: (a) enhancing the performance and quality of their existing heating facilities; (b) improving city environment, and air quality. 2. The LMCEP covers the medium-sized municipalities of Yingkou, Anshan, Liaoyang, Benxi, Fushun, Kangping County, Lingyuan, Chaoyang and Yi County of Jinzhou. Project content of each city see Table 1. Table 1 List of World Bank Financed Liaoning Urban Energy Component No. Project Name City/district Construction Content Land Acquisition 1. Build new EIC heating distribution, which is rebuilding the distribution from primary EIC compression pumping station to the main distribution in city zone and some lateral distribution; 2. Rebuild carbonization heating distribution 3. Build a trunk line and some branch lines of residues- 22.31mu permanent state- Benxi Steel Heat flushed water heating supply owned land acquisition, Supply distribution and rebuild some 0.97mu of which is 1 Development Benxi City outdated distribution. undefined land; 81.55mu Company district 4. Expanding present primary temporary state-owned central project EIC heating distribution land acquisition compression pumping station and build new heating distribution backwater pumping station. 5. Build a residues-flushed water treatment plant and a primary compression pumping station; build a compression pumping station in Qianjin community. 34.46mu and 1.69mu of Construct 1 set of heat source permanent farmland and plant, the scale of which is 3 Benxi Nanfen state land acquisition, two hot water boilers (29MW); 2 central heating Nanfen kinds of land are build 13 heating converting project undefined; 40.41mu stations and 17.37km temporary state-owned distribution. land acquisition Build 2 set of heat source plants, one of which is 4 hot water boilers(64MW), the other is 1 hot water boiler 2 90.26mu and 9.9mu of (29MW); provide 494.3m permanent farmland and Dashiqiao District heating supply area; build 47 state land acquisition, central heating Dashiqiao heating converting stations, of 3 1.41mu of which is project of Yingkou City which 35 sets are large heat undefined; 44.49mu City converting station, and 12 sets temporary state-owned building heat converting land acquisition station; pave 39.17km relevant primary hot water distribution and some secondary. 1 No. Project Name City/district Construction Content Land Acquisition Build 84.59km primaryl 9.52mu permanent state- Yingkou economic Yingkou distribution and some owned land acquisition, techniques economic secondary; build 66 large 14.18mu is undefined 4 development zone techniques heating converting stations, land; 205mu temporary central heating development and 1 set of relaying pumping state-owned land network project zone station, and 11 building heat acquisition converting station. Construct 3 hot water boilers(58MW), build 16 98.05mu permanent state- Gongchangling heating converting stations, 1 owned land acquisition, District central Gongchangli relaying pumping station and 0.99mu of which is 5 heating project of ng 1 interspace heating undefined land; 95.49mu Liaoyang City converting station; build temporary state-owned 37.56km primary heating land acquisition supply distribution. 3 Build 1 set of 50000m dry gasholder; repair the existing 3 2.4mu permanent state- Yingkou Gas 50000m storage tank and 3 owned land acquisition; 6 establishment Yingkou City 20000m storage tank; 149.1mu temporary state- expansion project construct gas intelligent owned land acquisition management system; rebuild 57.8km distribution system. 19.94mu permanent state- Huaneng Build 83 heating converting owned land acquisition, Thermoelectric stations; build a new control 1.85mu of which is 7 Northern Yingkou Yingkou City centre of thermal net; build undefined land; 186.75mu Central Heating 49.1km heating supply temporary state-owned Project Phase I pipeline network. land acquisition 40.61mu permanent state- Yangjiazhan Build a new 3×29MW hot owned land acquisition, Mining area central gzi water supply boilers; Build 13 2.59mu of which is 8 heating project in development sets of heat converting station; undefined land; 20.83mu Yangjiazhangzi zone of build 112.77km primary temporary state-owned Huludao City heating pipeline network. land acquisition Yingkou economic Build 160.46km of primary hot 9.0mu permanent state- Yingkou techniques water network, secondary owned land acquisition, economic 2 development zone network (for 1298.48m 33.76mu is undefined 9 techniques central heating construction area), 3 relay land; 468.61mu temporary development network project pump stations, 166 group state-owned land zone phase II HESs, and 58 building HESs acquisition 1. Build 2 new 59MW hot water boilers and accessorial facilities in the original plant. Benxi Fanya 2. Reconstruct urban primary 1.35mu permanent state- Environmental heating network (total length is owned land acquisition; Protection 18.857km). 10 Benxi City 458.87mu temporary Thermoelectric Co. 3. Build 3 new HESs, state-owned land Ltd. central heating reconstruct 10 original HESs, acquisition project phase III use 25 old HESs. 4. Build 31 new building HESs and primary network (total length is 2.4km). 22.44mu permanent state- owned land acquisition; Shenyang City 0.9mu permanent Build 17.22km new primary Kangping County Kangping collective land acquisition; 11 hot water network; 28 group urban central County 17.94mu temporary state- HESs, and 8 building HESs. heating project owned land acquisition; 15.44mu temporary collective land acquisition. New construction of 31.03km 20.517mu of state owned Central urban first stage heating water land will be permanently heating supply Ling Yuan 12 network. 57 new heat- occupied and 139.12mu of project of Ling City exchange stations are state owned land will be Yuan City planned to be set up, including temporarily occupied. 2 No. Project Name City/district Construction Content Land Acquisition 23 original stations modification, with 31 stations newly constructed (Including 3 building heat-exchange stations). 1 heat-supply energy management and dispatching center Build 53 km new first-level Include permanent use of pipelines. Build 205 new heat 81.6mu state-owned land stations and 8 new building and temporal use of heat stations as well as rebuilt 396.06mu state-owned Central Heating 53 heat stations. land. Project in the Chao Yang The project heating source is As the red line of the 13 Downtown Area of City the State Grid thermal power thermal power plant has Chaoyang plant project, which is not been identified, the Municipality recognized as the co-project amount of the land for of this project according to the acquisition can’t be involuntary migration policies identified yet during the of the World Bank. project preparation phase. Build 17.02km long new first- level hotwater pipelines and rebuild 7.29km long first-level network; Build 18.91km long Central Heating new second-level hotwater Include permanent use of Reconstruction pipelines and rebuild 4.76mu state-owned land 14 Project in Urban Yi County 75.046km long second-level and temporal use of Area of Yi County network; Build 17 new stations 470.88mu state-owned of Jinzhou and 10 building stations and land. install water softening devices for 42 stations; Install 54 heat meters in buildings in the pilot area. 3. During the feasibility study stage of the project, because the location of some newly-built heating stations and pumping stations (451 large heating stations, 102 building heat exchange stations and 8 pumping stations, acquiring 133.64mu land) are still undecided, and land acquisition and house demolition caused by the newly-built heating stations, pumping stations and their pipelines adjusting scheme are still undecided, so resettlement impact currently is not identified. The heating source plant to be built in Chaoyang, i.e. the state grid thermal power plant of Chaoyang, has been recognized as the co-project of this project supported by the World Bank. As the red line of the thermal power plant has not been identified, the amount of the land for acquisition can’t be identified yet during the project preparation period. It is estimated that this heating source plant project will result in acquisition of the collectively-owned land and demolition/relocation of the rural houses. Therefore, RPF of this project will be taken as guideline of the working out and implementing of RAP, if resettlement impact appears in implementation process, RPF would be performed. B. Principles and Objectives 4. In World Bank assisted projects, final borrowers or component sponsors are 3 expected to take all necessary measures to mitigate adverse social impacts. The costs associated with mitigation of adverse social impacts on project affected people, such as relocation of affected persons, restoration of livelihoods and the related costs, will be met by the component sponsors. The general guidelines of this RPF are to be followed by all components under Loan involving involuntary resettlement. Where adverse social impacts are identified, plans for resettlement and rehabilitation (R&R) will need to be prepared based on policies and procedures laid out in this framework. 5. Every effort will be made to avoid or minimize the need for land acquisition and resettlement of any components. In the unlikely and exceptional event that any of the components under the project require additional land, houses and other assets becomes unavoidable; the component sponsors shall adopt this RPF. 6. The principle objective of the RPF is to ensure that all Displacement People (DP) 1 will be compensated for their losses and provided with rehabilitation measures to assist them to improve, or at least maintain, their pre-project living standards and income earning capacity. 7. The PAP is people affected negatively by the project, including mainly the following persons to be identified by the baseline information collected: (a) The persons whose place of business or employment, and/or agricultural land is in part or in total affected (permanently or temporarily) by the subprojects; (b) Persons whose houses are in part or in total affected by the subprojects; (c) Persons whose business are affected in part or in total (temporarily or permanently) by the subprojects; (d) Persons whose crops (annual and perennial), trees and fixed assets are affected in part or in total by the subprojects. 8. The principles outlined in the World Bank’s OP/BP 4.12 have been adopted in preparing this RPF. In this regard the following principles and objectives would be applied: 1 “Displaced persons” refers to all the people who, on account of the activities list ed above, would have their (1) standard of living adversely affected ; or (2)right, title, interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed temporarily or permanently; (3) access to productive assets adversely affected, temporarily or permanently; or (4)business, occupation, work or place of residence or habitat adversely affected; and “displaced person” means any of the displaced persons. 4 (a) Acquisition of land and other assets, and resettlement of people will be minimized as much as possible. Where land acquisition is unavoidable, the project will be designed to minimize adverse impact on the (PAP), especially the vulnerable groups; (b) All PAP will be compensated, relocated and rehabilitated, if required, so as to improve their standard of living, income earning capacity and production capacity, or at least to restore them to pre-Project levels; (c) All PAP residing in, or owing cultivating land, or having resources within the components area of the socioeconomic survey are entitled to be compensated for their losses and/or income rehabilitation. Lack of legal right to the assets lost will not bar the PAP from entitlement to such compensation, rehabilitation and relocation measures; 2 "Replacement cost" is defined as follows: For agricultural land, it is the pre-project or pre-displacement, whichever is higher, market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost of any registration and transfer taxes. For land in urban areas, it is the pre-displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity of the affected land, plus the cost of any registration and transfer taxes. For houses and other structures, it is the market cost of the materials to build a replacement structure with an area and quality similar to or better than those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any labor and contractors' fees, plus the cost of any registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures so as to meet the replacement cost standard. Such additional assistance is distinct from resettlement measures to be provided under other clauses in OP 4.12, para. 6. (d) The rehabilitation measures to be provided are (i) compensation at full replacement cost2 for houses and other structures; (ii) compensation for land acquisition and resettlement subsidy for the affected villages and farmers; (iii) dislocation allowance and transition subsides; (iv) full compensation for crops, trees and other similar agricultural products at 5 market value; and (v) other assets, and appropriate rehabilitation measures to compensate for loss of livelihood; (e) Replacement house-plots, place of business and agricultural land will be as close as possible to the land that was lost, and acceptable to the PAP; (f) Land-for-land is the preferred option. Land-for-land may be substituted by cash provided that: (i) land is not available in the proximity of the subproject area; (ii) PAP willingly accept cash compensation for land and all assets on it; and receive full replacement value without any deductions for depreciation other reasons; and (iii) cash compensation is accompanied by appropriate rehabilitation measures which together with project benefits results in restoration of incomes to at least pre-subprojects levels; (g) The resettlement transition period will be minimized, land-for-land and/or cash compensation provided to the PAP completed prior to the expected start-up date of works in the respective components; (h) Resettlement plans will be implemented following consultations with the PAP, and will have the endorsement of the PAP; (i) The previous level of community services and access to resources will be maintained or improved after resettlement; (j) Any acquisition of, or restriction on access to resources owned or manage by PAP as common property will be mitigated by arrangements ensuring access of those PAP to equivalent resources on a continuing basis; (k) Financial and physical resources for resettlement and rehabilitation will be made available as and when required; (l) Resettlement program will include adequate institutional arrangements to ensure effective and timely design, planning and implementation of resettlement and rehabilitation measures; (m) Adequate arrangements for effective and timely internal and external monitoring will be made on implementation of all resettlement measures; (n) Wherever possible the components will ensure that local residents in the affected areas benefit from the services and facilities created for, or by, the components. C. Process for Preparing and Approving Resettlement Plans 9. All components involving involuntary resettlement will be required to carry out a socioeconomic survey to determine the impact on the affected area and the affected population. The survey will determine whether or not the component would need preparation of a Resettlement Plan (RP) or an Abbreviated Resettlement Plan (ARP) to offset adverse impacts and access to benefits by the affected communities. The main sequential steps involved in the resettlement approval process are as follows: (a) Component sponsor furnishes preliminary information report on the proposed component to the LDRC Foreign Capital Utilization Project Office (LUCRPO) and the local authorities at the earliest possible stage. 6 The preliminary information report would contain basic information on: (i) the proposed location of project; (ii) the total area of land required for the physical component , the type of land, current land use and possible impacts of land use changes, and the proposed strategy for land acquisition; and (iii) the people to be affected by the component including those losing home, land or livelihoods; and those deriving benefits (employment, electricity, etc.) from the component; (b) LUCRPO will, after its review and consultation with the local authorities, inform the component sponsor to prepare a resettlement document according to this RPF; (c) For each component that may involve resettlement, WB requires a satisfactory resettlement plan or an abbreviated resettlement plan that is consistent with the provision of the policy framework be submitted to the Bank for approval before the component is accepted for Bank financing. When the number of persons affected by the component exceeds 200, a resettlement plan shall be prepared. Where impacts on the entire affected population are minor, or fewer than 200 people are affected, an abbreviated resettlement plan may be agreed with the borrower. Impacts are considered “minor” if the affected people are not physically displaced and less than 10% of their productive assets are lost; (d) The component sponsor prepares the RP or ARP and submits it to the local authorities, LUCRPO and the World Bank for review/concurrence; (e) The World Bank shall verify the adequacy of the report in light of policies, principles and procedures set out in this RPF, and convey the decision to the component sponsor, and before the report is approved by World Bank, relevant funds could not be distributed; (f) After obtaining concurrence of the World Bank, the component sponsor executes the RP or ARP which would also contain terms and conditions related to implementation of the plans agreed in the RPF. 10. The ARP for each component will be prepared by the respective component sponsor in accordance with the provisions of this RPF. The ARP includes the following contents: (a) a census survey of displaced persons and valuation of assets; (b) description of compensation and other resettlement assistance to be provided; (c) consultations with displaced people about acceptable alternatives; (d) institutional responsibility for implementation and procedures for grievance redress; (e) arrangements for monitoring and implementation; and (f) a timetable and budget. 11. The RP to be submitted thereafter needs not include the policy principles, entitlements, and eligibility criteria, organizational arrangements, arrangements for 7 monitoring and evaluation, the framework for participation, and mechanisms for grievance redress set forth in the resettlement policy framework. The component -specific resettlement plan needs to include baseline census and socioeconomic survey information; specific compensation rates and standards; policy entitlements related to any additional impacts identified through the census or survey; description of resettlement sites and programs for improvement or restoration of livelihoods and standards of living; implementation schedule for resettlement activities; and detailed cost estimate. The RP includes the following contents: (a) Description of the component; (b) Potential impacts; (c) Socioeconomic studies and baseline census; (d) Additional policy entitlements; (e) Compensation rates for losses; (f) Resettlement measures; (g) Site selection, site preparation, and relocation; (h) Housing, infrastructure, and social services; (i) Implementation schedule; (j) Costs and budget D. Estimated Population Displacement 12. It is foreseen that the unsettled part of the project will result in the acquisition of the collectively-owned land and demolition/relocation of the rural houses and the number of the affected population can’t be identified yet. During the project implementation, new proposals under the component may be made; or the Resettlement Plan prepared may need to be revised or updated. E. Legal Framework 13. In order to accomplish the task of land acquisition and demolition caused by LMCEP and guarantee the legal rights of affected persons and enterprises and to support project implementation, project policy is prepared according to the following land acquisition and demolition regulations of People’s Republic of China, Liaoning Province and the related municipality and World Bank OP4.12 Involuntary Resettlement Policy. The main legal framework comprises: Policy and document Effective date Land Administration Law of the People's Republic of China 2004.8.28 Regulations for the Implementation of the Land Administration Law 2004.8.28 National of the People's Republic of China the Law on Real Estate Administration of the People’s Republic of 1995.1.1 China 8 Policy and document Effective date the Regulations on Administration of Urban House Dismantling and 2001.11.1 Relocation State Council’s Decision on Deepening, Reforming, and 2004.10.21 Strengthening Land Administration (Guo Fa〔2004〕No.28） Notice to “Guiding Opinions on Appraisal of Urban House 2004.1.1 Dismantlement (Jian Zhu Fang [2003] No. 234) Acquisition and Compensation Byelaw of Houses on State-owned 2011.1.21 (590 State Council Decree) Measures of Liaoning Province on implementing the Land Administration Law of the People's Republic of China (Orders of 2002.4.1 Liaoning Provincial Government [2002] No. 149 Measures of Liaoning Province on Urban House Demolition 2002.12.1 Administration Circular of Liaoning provincial government on land acquisition and Provincial compensation task and farmer’s legal rights protection (No. 27, 2004.8.14 2004) Notice on the Implementation of Standards for Integrated Land Price of Land Acquisition by General Office of Liaoning Provincial 2010.1.7 People's Government Notice of Liaoning Provincial Government on land acquisition price 2010.2.1 list (No.16, 2010) Circular of Printing and Distributing Measures of Urban House Yingkou Demolition Administration of Yingkou (Ying Zheng Fa [2003] 2003.12.24 city No.52) Yingkou economic Circular of Printing and Distributing Measures of House Demolition 2005.2.23 developme Administration of Yingkou (Ying Kai Guan Fa [2005] No.3) nt zone Circular of Printing and Distributing Guiding Opinions on Municipal Strengthening Urban House Demolition of Dashiqiao (Da Zheng Fa 2005.4.1 (Dashiqiao) [2005] No.15) Municipal Circular of Printing and Distributing Measures of House Demolition 2000.4.6 (Haicheng) Administration of Haicheng (Hai Zheng Fa [2007] No.27) Answer about the questions of the suggesting region price and Gongchang compensation standard of house demolition in the resettlement area 2005.9.16 ling District of Gongchangling (Liao Shi Jian Fa [2005] No.96) Measures of House Demolition Administration of Benxi (Ben Zheng 2002.5.16 Fa [2002] No.86) Municipal Circular of resettlement and compensation regulation for Shanty (Benxi) Town demolition and reconstruction in Benxi (Ben Zheng Fa [2005] 2005.5.24 No.52) Measures of House Demolition Administration of Fushun 2003.7.15 Temporary prescription on relevant issues of collective land Municipal acquisition and resettlement in Fushun (Fu Zheng Fa [1999] 1999.6.14 (Fushun) No.99) Prescription on young crop compensation in Fushun Yangjiazha Circular of Printing and Distributing the suggestions on ngzi, strengthening urban house demolition (Hu Yang Guan Wei Fa 2007.7.9 Huludao [2007] No.52) 9 Policy and document Effective date Resettlement and compensation scheme for former Shanty Town and Mining area demolition and reconstruction in Yangjiazhangzi 2006.8.10 (project headquarters of former Shanty Town and Mining area demolition and reconstruction in Yangjiazhangzi) About the meeting minutes of identification of the compensation Kangping criteria for the temporal use of the land for the municipal pipeline County 2012.8.20 engineering (General Office of Kangping County People’s Government) World Bank operational policies OP4.12 Involuntary Resettlement 2002.1.1 and its Annex World Bank World Bank operational procedures BP4.12 Involuntary 2002.1.1 resettlement and its Annex F. Potential Resettlement Impacts and Compensation Standard 14. Impacts of heating stations, of which locations are not sited, are listed in Table- 2. Impacts of pipe network construction are not identified for future alterations and the potential impacts are listed in Table-2. 15. According to the regulation of the legal framework, combined with the actual condition of each component affected municipality, compensation standard of various impacts was laid down. The time of displaced persons eligibility definition is the announcement date of demolition. After the date, the PAP is not permitted to build new houses, enlarge, and reconstruct their houses. Besides, use purpose of the house and land could not be changed. Land leasing, and house leasing and dealings are not allowed. And the people influxes after the certain date are not entitled to compensation. 10 Table 2 Impact List of Land Acquisition Quantity of group heating stations, building heating stations and pumping stations of Area of permanent land which the property is not Potential impacts of permanent Potential impacts of temporary Sub-project Name acquisition (mu) decided land acquisition land acquisition (property-undecided ) Group Building Pumping heating heating station station station Benxi Steel Heat Supply State-owned land and rural Development Company central 0.97 2 collective wasteland heating project Benxi Nanfen central heating State-owned land, rural collective Rural collective farmland and 2 7 project wasteland and house plots wasteland Dashiqiao District central heating State-owned land and rural Rural collective farmland and 1.41 4 12 project of Yingkou City collective wasteland wasteland Yingkou economic techniques Demolishing part of economic State-owned land, rural collective development zone central heating 14.18 37 1 11 houses and temporarily acquiring wasteland and house plots network project rural collective wasteland Demolishing part of economic Gongchangling District central State-owned land and rural 0.99 3 1 houses and temporarily acquiring heating project of Liaoyang City collective wasteland rural collective wasteland Huaneng Thermoelectric Northern Yingkou Central Heating Project 1.85 3 1 State-owned land Phase I Mining area central heating project State-owned land, rural collective Temporary acquiring rural in Yangjiazhangzi development 2.59 10 wasteland and house plots collective wasteland zone Yingkou economic techniques Demolishing part of economic State-owned land, rural collective development zone central heating 33.76 132 3 58 houses and temporarily acquiring wasteland and house plots network project phase II rural collective wasteland 11 Urban central heating project of Kangping County 0.9 2 State-owned land Central Heating Project of Ling Yuan Municipality 7.68 31 3 State-owned land Central Heating Project in the Downtown Area of Chaoyang 362.55 205 8 State-owned land Municipality Central Heating Reconstruction Project in Urban Area of Yi County 4.76 17 10 State-owned land of Jinzhou Total 433.64 451 8 102 2 2 2 Note: The land area acquired is 140-240 m by each group heating station, 200-400 m by each pumping station, and 10 m or so by each building heating station (inside residential buildings). However, the locations are not sited, so objects on the ground are not identified. 12 Compensation standard of rural collective land acquisition According to Land Administration Law of the People’s Republic of China, Guiding Opinions on Improving the System of Land Acquisition, Compensation and Resettlement, Liaoning Province implements Land Administration Law of the People ’s Republic of China and Circular of Liaoning provincial government on land acquisition and compensation task and farmer’s legal rights protection and the relative policy and regulation of the affected cities. Land acquisition compensation includes land compensation, resettlement subsidy and young crop compensation. They are calculated as the legal annual output value multiple as given in Table 3. Compensation standard of rural collective land acquisition of each affected cities, see Table 4. Land acquisition tax, see Table 5. Table 3 Annual output value standard for land acquisition compensation Liaoning Provincial Municipal Project Name City/town Remark Policy Policy Benxi Steel Heat Supply Annual output value is Development Company central Benxi City calculated as the local heating project comprehensive output Benxi Nanfen central heating Nanfen District, of crop and economy project Benxi but not single crop Dashiqiao District central heating production. In Dashiqiao City project of Yingkou City accordance with the Yingkou actual situation of Yingkou economic techniques Economic and Liaoning, the annual development zone central heating Techniques output value per mu of network project Development municipalities is not Zone less than RMB 2,000, Gongchangling District central Gongchangling county level cities or Based on heating project of Liaoyang City District, Liaoyang towns are not less than provincial Mining area central heating project RMB 1500 and in other policy Yangjiazhangzi, in Yangjiazhangzi development place not less than Huludao zone RMB 1,000. Economic Yingkou developed areas also Yingkou economic techniques Economic and should increase the development zone central heating Techniques standard. network project phase II Development The land acquisition of Zone the Project Benxi Fanya Environmental implemented after Protection Thermoelectric Co. Ltd. Benxi City 2010, will be carried central heating project phase III out according to Shenyang City Kangping County “Notice on the Kangping County Implementation of urban central heating project 13 Standards for Integrated Land Price of Land Acquisition by General Office of Liaoning Provincial Ling Yuan City Urban Central People's Government”, Ling Yuan City Heating Project the compensation standards will be confirmed according to the Integrated Land Price of Land Acquisition. Central Heating Project in the Downtown Area of Chaoyang Chaoyang City Municipality Central Heating Reconstruction Yi County of Project in Urban Area of Yi County Jinzhou of Jinzhou 14 Table 4 Collective land acquisition compensation multiple and standard of each municipality Annual production Multiple Compensation standard (CNY/mu) City/town Land type value Remark Land Resettlement Land Resettlement Young (CNY/mu) Subtotal Subtotal Compensation Subsidy Compensation Subsidy Crops Wasteland 2000 3 3 6000 6000 Benxi City House 2000 7 4 11 14000 8000 22000 plot Wasteland 1500 3 3 4500 4500 Nanfen District, House Benxi 1500 7 4 11 10500 6000 16500 plot Dashiqiao City Wasteland 1500 3 3 4500 4500 Yingkou Economic Wasteland 1500 3 3 4500 4500 and Techniques House 1500 7 4 11 10500 6000 16500 Development Zone plot Gongchangling Wasteland 1500 3 3 4500 4500 District, Liaoyang Wasteland 1500 3 3 4500 4500 Yangjiazhangzi, House Huludao 1500 7 4 11 10500 6000 16500 plot Yingkou Economic Wasteland 24000 and Techniques House Project after 2010 30000 Development Zone plot 15 Table 5 Land acquisition tax Land Farmland City/town Fees paid for use of Land Cultivation Acquisition Land type New Land Construction Administration Fee Tax (CNY/mu) Fee (CNY/mu) (CNY/mu) Wasteland 37333 Benxi City House 37333 plot Wasteland 18667 Nanfen District, Benxi House 18667 plot Dashiqiao City Wasteland 18667 Yingkou Wasteland 22667 Economic and Techniques House 22667 Development plot Zone Gongchangling District, Wasteland 16000 Liaoyang Wasteland 16000 Yangjiazhangzi, House Huludao 16000 plot Yingkou Wasteland 22667 Economic and Techniques House 22667 Development plot Zone Land Receiver Finance Bureau Tax Bureau Land Bureau Bureau Circular of adjusting the paid-use policy of new Charging basis construction land (Cai Zong [2006] No.48) Compensation standard of permanent state-owned land acquisition The land taken by the project becomes urban infrastructure land. State-owned land can be obtained through land assignment according to national laws. Compensation standard of temporary land acquisition The compensation standard for temporary rural collective land acquisition is in accordance with the use and the affected period. Compensation is mainly for young crop compensation and land restoration fee. One planting season affected, young crop compensation of the season would be given. Compensation of temporary rural collective land acquisition, see Table 6. And the time limit for temporary land acquisition is less than half an year. 16 There is not land compensation in temporary state-owned land acquisition. Demolished ground attachments are compensated on the basis of resettlement cost or restored on the basis of its original standard and scale by project sponsors. The fee is put into project construction fund. Table 6 Compensation of temporary rural collective land acquisition Young crop (CNY Land restoration Subtotal City/town Land type /mu·season) (CNY/mu) (CNY/mu) Dry land 1500 Benxi City Wasteland 1500 Vegetable Nanfen District, 3000 land Benxi Wasteland 1500 Dry land 1500 Dashiqiao City Wasteland 1500 Yingkou Economic and Techniques Wasteland 1500 Development Zone Gongchangling District, Wasteland 1500 Liaoyang Yangjiazhangzi, Wasteland 1500 Huludao Kangping Dry land 1500 3000 County Receiver Land user Village committee － Compensation standard of rural residential house demolition There might be rural residential house demolition in Yingkou economic and techniques development area and Gongchangling District of Liaoyang. According to compensation policy of rural residential house in the two areas, through calculation about resettlement cost of demolished residential houses, compensation standard of the house of various structures is prescribed. Details see Table 7. The property owner of rural house could obtain compensation for house plot, if choosing currency resettlement. Table 7 Compensation standard of rural residential house demolition Compensation standard（ Other compensation Yuan/m²） City/town Temporary remark Brick- Brick- Moving allowance Simple resettlement subsidy concrete wood (Yuan/family） 2 （Yuan/M •month） 17 Yinkou Economic and 50 CNY/month per House Techniques 670 640 200 person plot is Development given Zone 2 at no Gongchangling Currency: 10 CNY/M 2 cost District, 850 750 property trade: 6 CNY/M per month 2 Liaoyang 20 CNY/M Note: temporary resettlement subsidy is calculated by actual transition time, which is less than 12 months. Compensation standard of affected infrastructure and ground attachments Compensation for affected ground attachments and public establishment should be distributed according to replacement principle. G. Rehabilitation Measures 16. The entitlement policy aims to enable PAP to replace the assets they have lost on account of the project, to recover and to improve upon their pre-component living standards within the shortest possible time. In general, the resettlement & rehabilitation (R&R) package would consist of (a) provision for replacement assets or its cash equivalent, where replacement is not feasible; (b) rehabilitation grants to compensate for temporary disruption in life and economic activities; (c) either employment or training, capital and enterprise support for income restoration in case of loss of livelihoods, and (d) provision for replacement of community facilities and services for affected communities. 17. PAP losing house and auxiliary structures will be entitled to the following compensation and rehabilitation measures: (a) PAP whose houses are being acquired by the components will be provided replacement housing within easy communing distance of their existing homes; (b) PAP will be provided with compensation at full replacement value, without any deduction for depreciation, for any structures and fixed assets affected by the components; (c) A pre-determined dislocation allowance according to the prevailing rates of the component areas will also be provided. 18. PAP losing agricultural land will be entitled to the following types of compensation and rehabilitation measures: (a) For the majority of schemes, the land will be reallocated within the village by the village committees. According to the Land Administration Law, in situations where land reallocation is not possible, the PAP will be paid a maxim compensation and resettlement subsidy equivalent to 6 times of the average annual production output value of the land in the previous three years. If this is not sufficient to restore the livelihoods of the PAP to the pre- 18 component level, the compensation/subsidy may be raised to a maximum of 15 times of the average annual output value of the land in the previous three years; (b) If land compensation and resettlement subsidies paid are still insufficient to help the PAP to maintain their original living standards, the resettlement subsidies may be increased upon approval by the People’s Governments. However, the total land compensation and resettlement subsidies shall not exceed 30 times the average annual value of the three years preceding such requisition; (c) These amounts will be paid to the village committees whose land is affected and will be used for (i) increasing land areas under cultivation if land is available; (ii) intensification of agriculture through provision of irrigation, improved agricultural practices, etc.; and (iii) development of non- agriculture based income generation activities. PAP will be compensated for the loss of standing crops, fruit or industrial trees, as well as any fixed assets at market prices; (d) PAP whose land is temporarily taken will be compensated for their loss of income, standing crops and for the cost of soil restoration and damaged infrastructures. 19. If the house and/or structure is only partially affected by the components, the component sponsors may, if it is acceptable to the PAP, acquire the entire structures with full compensation or provide cash compensation for the portion affected as mutually agreed between the PAP and the sponsors. 20. PAP losing business will be entitled to the following compensation and rehabilitation measures: (a) The mechanism for compensation loss of business will be: (i) the provision of alternative business site of equal size and accessibility to customers, satisfactory to the PAP; (ii) cash compensation to the owner for lost business structure reflecting full replacement cost of the structures, without depreciation and the cost of transfer; and (iii) cash compensation for the loss of income during the transition period. (b) PAP will also be provided compensation at full replacement cost, without depreciation for any other fixed assets affected in part or in total by the subprojects. H. Organizational Procedures 21. Although the primary responsibility for enforcement of the RPF and implementation of the R&R rest with the component sponsors, the oversight responsibility 19 shall rest with Liaoning Provincial Government via LUCRPO in coordination with the respective local government authorities in each of the component areas. LUCRPO, with the authorization of Liaoning Provincial Development and Reform Commission (LDRC), shall also carry out regular monitoring as required by the World Bank, to ensure that the provisions of the RPF are satisfied. I. Implementation Process 22. A detailed implementation schedule of the various activities to be undertaken will be included in the resettlement plan. Payment of compensation and furnishing of other rehabilitation entitlements (in cash or in-kind), and relocation if that be the case, will be completed at least one month prior to the scheduled start-up date of works in the respective component site. J. Grievance Redress Mechanisms 23. Since the resettlement work will be carried out with the full participation of the PAP, it is expected that no major grievance issue will arise. However, to ensure that the PAP have avenues for redressing their grievance related to any aspect of land acquisition and resettlement, detailed procedures of grievances redressing have been established in this RPF. The objective is to respond to the complaints of the PAP speedily and in a transparent manner, without resorting to complicated formal channels to the extent possible. 24. The procedures are as follows: (a) Stage 1, any person aggrieved by any aspect of the resettlement document can lodge an oral or written grievance to the Community Committee, township/ town government or Residents Committee, District Government; (b) Stage 2, if the aggrieved person is not satisfied with the decision of the grass-roots authorities at Stage 1, she/he can present the case to the land administration bureau through the highest authorities of the respective component area; (c) Stage 3, if the PAP is still dissatisfied with the decision of the higher authorities, the case may be submitted for consideration by the People’s Court in Accordance with the “Civil Procedure Act”. K. Funding Arrangement 25. The land acquisition and resettlement compensation are sourced from the counterpart funds. All the funds shall be paid to the PAP before the land is taken and the house is demolished. L. Participation and Consultation 26. The component sponsors would be required to carry out the participation and 20 consultation of the people in the component areas. A broad acceptance of proposed measures by the PAP – including relocation areas and replacement lands, compensation policies and rates, proposed income restoration measures for R&R – will be a necessary condition for approval of the resettlement plans. 27. PAP will participate throughout the various stages of the planning and implementation of the resettlement plans. For these purposes and prior to the preparation of the resettlement plans, the PAP will be informed of the provisions of this RPF at public meetings. Each affected household or shop will be fully informed by the relevant local governments of their entitlements and rehabilitation choices under the respective resettlement plan. M. Monitoring and Evaluation 28. The internal monitoring of resettlement impacts will be carried out by the component sponsors as an independent part of the implementation of the plans, and will cover the component and post-component periods. It will assess achievements against key implementation targets and objectives and, accordingly, make corrections in the plans where necessary. Periodical monitoring reports will be submitted to LMCEPO. In addition, the external monitoring, arranged under the Resettlement Plan prepared before the project appraisal, will cover all resettlement components under the project. 21