SFG1436 V2 China Hebei Clean District Heating Project Pingshan County Urban Central Heating Subproject Abbreviated Resettlement Action Plan Pingshan County Urban Heating Co., Ltd. (PCUHCO) September 2015 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Contents 1. Overview ..................................................................................................................................... 5 1.1 Construction purpose and main content ............................................................................. 5 1.2 Implementation agencies.................................................................................................... 5 1.3 The heating source——Xibaipo Power Generation Co., Ltd ............................................... 5 1.4 Overview of Heat exchange stations .................................................................................. 5 1.5 linked project of the Subproject .......................................................................................... 5 1.6 Preparation process and methods of the RAP. ................................................................... 6 2. Background of the Subproject ..................................................................................................... 6 2.1 Socioeconomic profile of the subproject area ..................................................................... 6 2.2 Background and significance of the Subproject .................................................................. 7 2.3 Components ....................................................................................................................... 9 2.4 Investment........................................................................................................................ 10 2.5 Key technical and economic indicators ............................................................................. 10 3. Construction schedule............................................................................................................... 10 4. Impacts of the Subproject.......................................................................................................... 12 4.1 Types and area of impacts of the Subproject .................................................................... 12 4.2 Permanent land occupation .............................................................................................. 12 4.3 Temporary land occupation............................................................................................... 12 4.4 other social impacts .......................................................................................................... 15 4.5 Measures to mitigate impacts ........................................................................................... 15 5. Resettlement Policy Framework ................................................................................................ 15 5.1 Fundamental Policies ....................................................................................................... 16 5.2 Related Laws and Regulations ......................................................................................... 16 5.2.1 Key Provisions from the World Band Operational Policy on Involuntary Resettlement (OP 4.12) ......................................................................................................................... 16 5.2.2 Key Provisions from the Regulations on the Administration of Urban Roads ........... 16 5.2.2 Key Provisions from the Land Administration Law of the People's Republic of China ........................................................................................................................................ 17 5.2.2 Key Provisions from the Administrative Measures for the Collection of Urban Road Occupation and Excavation Fees .................................................................................... 18 5.2.3 The Notice of the Hebei Provincial Construction Commission on Adjusting Rates of Urban Road Excavation and Restoration (HPCC [1997] No.175) .................................... 18 5.3 Entitlement of affected Persons ........................................................................................ 19 6. Compensation for road occupation and excavation ................................................................... 20 6.1 Fee rates .......................................................................................................................... 20 6.2 Pavement restoration fees and road occupation fees ....................................................... 21 7. Public participation and grievance redress ................................................................................ 26 7.1 Public Participation ........................................................................................................... 26 7.1.1 Public Participation during ARAP Compiling Phase ................................................ 26 7.1.2 Public Participation during the Implementation of the ARAP ................................... 26 7.2 Grievance Mechanism and Channels ............................................................................... 26 8. The organization ....................................................................................................................... 27 8.1 Organization setup and function ....................................................................................... 27 8.2 Staffing ............................................................................................................................. 27 9. M&E .......................................................................................................................................... 28 2 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 9.1 Internal Monitoring............................................................................................................ 28 9.2 External M&E ................................................................................................................... 28 10. Relevant documents ............................................................................................................... 28 Appendix 1: Due diligence on Xibaipo Power Generation Co., Ltd. ............................................... 33 1. Introduction to Xibaipo Power Generation Co., Ltd. ............................................................ 33 2. Land occupation ................................................................................................................. 33 Appendix 2: LA and Resettlement Due Diligence on the Zhongshan West-Gangcheng Connecting Road ............................................................................................................................................. 33 1. Overview ............................................................................................................................ 33 2. Overview of the Zhongshan West-Gangcheng Connecting Road ....................................... 33 3. Overview of the affected area ............................................................................................. 33 4. LA and HD impacts............................................................................................................. 34 5. Impact analysis .................................................................................................................. 34 5.1 Permanent LA ........................................................................................................... 34 5.2 HD ............................................................................................................................. 34 6. Resettlement policy framework........................................................................................... 35 6.1 Applicable policies and regulations ............................................................................ 35 6.2 Applicable provisions ................................................................................................. 35 6.3 Compensation and resettlement policies ................................................................... 36 7. Resettlement progress ....................................................................................................... 38 7.1 Resettlement housing construction ............................................................................ 38 7.2 Resettlement ............................................................................................................. 38 8. Effectiveness of resettlement ............................................................................................. 38 9. Relevant documents........................................................................................................... 38 3 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Abbreviations AAOV - Average Annual Output Value AH - Affected Household AP - Affected Person HD - House Demolition LA - Land Acquisition M&E - Monitoring and Evaluation MLS - Minimum Living Security PCUHCO - Pingshan County Urban Heating Co., Ltd. ARAP - Abbreviated Resettlement Action Plan Units Currency unit = Yuan (RMB) $1.00 = CNY6.15 1 hectare = 15 mu 4 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 1. Overview 1.1 Construction purpose and main content The Pingshan County Urban Central Heating Facility Improvement and Expansion Project (hereinafter, the “Subproject”) is one of the 4 subprojects of the Hebei Clean Heating Project. The Subproject aims to utilize residual heat from Xibaipo Power Generation Co., Ltd. to supply heat to residents and public buildings within the planning area of the county town, thereby improving residential and heating conditions. The Subproject consists of the following components: 1) heating pipeline construction: construction of primary pipelines of 4,011m, and connecting lines between primary pipelines and heat exchange stations of 2,272m; reconstruction of primary pipelines of 3,193m, and connecting lines between primary pipelines and heat exchange stations of 745m; 2) heat exchange station construction: construction of 36 heat exchange stations, with a total capacity of 2.4912 million m2; 3) heat exchange station reconstruction: reconstruction and expansion of 5 existing heat exchange stations to 8 heat exchange stations, increasing heating capacity from 190,000 m2 to 730,000 m2; 4) reconstruction of heat meters of 16,934 households in existing buildings, with a total heating area of 1.9236 million m2; reconstruction of heat meters in public buildings, involving 108 enterprises, public institutions, etc., with a total heating area of 262,700 m2; and 5) automatic control: realizing the automatic control of 46 existing heat exchange stations; construction of an automatic monitoring and command center, increasing heating area by 3.0312 million m2. 1.2 Implementation agencies The implementing agency of the Subproject is PCUHCO, which is located in the Pingshan county town, and is a state-owned enterprise affiliated to the Pingshan Central Heating Office. PCUHCO has a workforce of 101 and fixed assets of 150 million yuan, responsible for heating facility construction, heating network management, heat supply, heating charge collection, etc. 1.3 The heating source——Xibaipo Power Generation Co., Ltd In the Subproject, the reconstructed 2×330MW units of Xibaipo Power Generation Co., Ltd. will be used as the heating source, with a design capacity of 7.5 million m2. Xibaipo Power Generation Co., Ltd., founded in 1991, is located 1km east of the Pingshan county town, with a floor area of over 200 mu. This company involves neither land acquisition (LA) nor house demolition (HD). See Appendix 1 for the due diligence report. 1.4 Overview of Heat exchange stations According to the Regulatory Requirements for the Construction of Central Heating Facilities (PCHO [2011] No.7) issued by the Pingshan Central Heating Office, the new heat exchange stations will be constructed on sites offered for free, and the expanded ones will be constructed in existing ones, involving neither LA nor HD. See Chapter 9 of this report for the above document. 1.5 linked project of the Subproject The new and reconstructed primary pipelines under the Subproject will be constructed along existing urban roads, involving neither LA nor HD. The new primary pipelines under the Subproject are divided into 4 segments, in which the road section between Zhongshan West-Gangcheng Connecting Road, and road section from Gangcheng Road to Baipo West Road with a total length of 1,821m has not been completed. Therefore, this connecting road is a considered as linked project of the Subproject. The land occupied for this connecting road is collective land in Mengxianbi Village, Pingshan Town acquired in April 2013. See Appendix 2 for the due diligence report of this project. 5 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Gangcheng Road Mengxianbi Village Xibaipo Power Plant Zhongshan West Road Figure 1 Locations of Zhongshan West Road, Gangcheng Road, Mengxianbi Village and Xibaipo Power Plant 1.6 Preparation process and methods of the ARAP. The Shanxi Academy of Social Sciences was appointed by the owner Pingshan County Urban Heating Co., Ltd. (PCUHCO) to organize a task force, and assist the owner in preparing this ARAP. During October 27-29, and December 18-21, 2014, a team of 8 organized by the task force and the PMO conducted a comprehensive socioeconomic survey in the subproject, conducted extensive public participation, and collected comments and suggestions from stakeholders. The task force conducted comprehensive socioeconomic survey in the project area, and conducted adequate consultation with all stakeholders on the necessity and social impacts of the Subproject. Based on understanding of local social economic conditions, the task force discussed the issues with affected people on reemployment for boiler workers, secondary heat network improvement charges, residents’ ability and willingness to pay and tried to incorporate their attitudes, needs and suggestions into the subproject design. On this basis, PCUHCO prepared the ARAP of the Subproject. 2. Background of the Subproject 2.1 Socioeconomic profile of the subproject area Pingshan County is located in southwestern Hebei Province and governed by Shijiazhuang City, with a land area of 2,648 km2, governing 12 towns, 11 Xiangs and 717 villages. At the end of 2013, the county’s population was 497,200, including an urban population of 71,100 and a rural population 426,100, and 254,600 males and 242,600 females. In 2013, the county’s GDP was 20.716 billion yuan, a year-on-year growth of 10.1%, in which the added value of primary industries was 1.944 billion yuan, up 3.2%; that of secondary industries 13.812 billion yuan, up 12.0%; and that of tertiary industries 4.96 billion yuan, up 8.1%. In 2013, the county’s fiscal revenue was 1.603 billion yuan, down 12.7%, in which budgetary revenue of public finance was 784 million yuan, down 18.0%. Urban residents’ per capita disposable income was 20,354 yuan, up 3.4%; and farmers’ per capita net income 5,332 yuan, up 13.1%. 6 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 2.2 Background and significance of the Subproject The Subproject is intended to supply heat to residents and public buildings within the planning area of the county town, and upgrade existing central heating systems, thereby improving heating quality and conserve energy. The Subproject has significant social and environmental benefits. After its completion, heating area will be increased by 3.0312 million m2 to 7.5 million m2, beneficiary population will be 178,000, 35,901.8 tons/year of standard coal, 0.04GJ/m2 of heat and 0.047 ton/m2 of water will be saved, CO2 emission reduced by 9,4062.7 tons, SO2 emission reduced by 305.17 tons, NOX emission reduced by 325.99 tons and dust emission reduced by 7,180.36 tons, thereby improving the urban environment greatly and promoting the economic development of Pingshan County. 7 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Figure 2 Location map of heating pipelines and heat exchange stations 8 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Pingshan County Shijiazhuang City Figure 3 Location of Pingshan County in Hebei Province and Shijiazhuang City 2.3 Components The main components of the Subproject are: 1) Construction of primary pipelines of 4,011m, including DN500, 1,865m; DN400, 1,200m; DN300, 384m; DN250, 562m Construction of connecting lines between primary pipelines and heat exchange stations of 2,272m, including DN100, 32m; DN150, 227m; DN200, 656m; DN250, 1,357m 2) Reconstruction of primary pipelines of 3,193m, including DN500, 1,751m; DN400, 1,442m Reconstruction of connecting lines between primary pipelines and heat exchange stations of 745m, including DN200, 320m; DN250, 425m 9 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 3) Construction of 36 heat exchange stations in 16 communities, including 27 local stations with a heating area of 2.2012 million m2, and 9 building stations with a heating area of 290,000 m2, totaling 2.4912 million m2 4) Reconstruction and expansion of 5 existing heat exchange stations to 8 heat exchange stations, increasing heating capacity from 190,000 m2 to 730,000 m2 2.4 Investment The Subproject has a construction period of 4 years and a gross investment of 157.69 million yuan, including a construction investment of 147.44 million yuan, financial costs of 4.14 million yuan, and an underlying working capital of 6.11 million yuan. The funding sources include a Bank loan of USD13 million, equivalent to 79.95 million yuan, accounting for 50.70% of gross investment, as well as counterpart funds of 77.74 million yuan. 2.5 Key technical and economic indicators See Table 2-1. Table 2-1 Key technical and economic indicators No. Item Unit Qty. 2 1 Heating area 0,000 m 303.12 2 1.1 Additional heating area from new heat exchange stations 0,000 m 249.12 Additional heating area from reconstructed heat exchange 2 1.2 0,000 m 54 stations 2 2 Overall heating capacity W/m 40 3 Heating load MW 131.61 4 Annual heating capacity 0,000 GJ/a 5 Pipelines m 10221 5.1 Primary pipeline construction m 4011 Connecting lines between new pipelines and heat 5.2 m 2272 exchange stations 5.3 Primary pipeline reconstruction m 3193 Connecting lines between reconstructed pipelines and 5.4 m 745 heat exchange stations 6 New heat exchange stations / 36 6.1 Conventional stations / 27 6.2 Building stations / 9 7 Reconstruction of heat exchange stations / 8 8 Separate metering (households) 8.1 Number / 16934 2 8.2 Area 0,000 m 192.36 9 Separate metering (public buildings) 9.1 Number / 108 2 9.2 Area 0,000 m 26.27 10 Automation of heat exchange stations / 46 11 Automatic monitoring and command center / 1 12 Staffing / 13 Gross investment 0,000 yuan 15769 3. Construction schedule The Subproject is expected to break ground in April 2016 and reach design capacity after October 2019. See Table 3-1. 10 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Table 3-1 Construction progress Construction progress No. Component 2016.04-2017.03 2017.04-2018.03 2018.04-2019.03 2019.04-2019.10 1) Kangning Garden on Zhongshan 1) Old Yehe River Bridge to 1) Highway to Feicheng West Road to Gangcheng Road, Baipo West Road Baipo International Community Construction of and Gangcheng Road to Baipo West Road to Jianshe Street 2) Secondary pipelines: DN150 primary pipelines of West Road; 2) Secondary pipelines: 100m, DN250 649m 1 4,011m and 2) Dongchuan Street to Huaying DN100 32m, DN200 323m, secondary pipelines Road DN250 222m of 2,272m 3) Secondary pipelines: DN150 127m, DN200 333m and DN250 486m Reconstruction of Baipo East Road to coach Wenmiao-Hongqi road junction to Jianshe Street to 2 primary pipelines of stationDN500 1751m Dongguan VillageDN400 432m JinsanjiaoDN400 1010m 3,193m 7 in Zhongshan Century Plaza; 2 in 3 in Time Town, 2 in Wangzi Runjing Garden, 2 in Longxing Village, 1 in Red Cross Hospital, 2 Construction of 36 Garden; 2 in Zizhu Gareden; 2 in in Shuxiang Garden, 2 in 3 heat exchange Xicheng Garden; 3 in Xiangxie Feicheng International stations Garden; 2 in Binhe Garden; and 2 in Community, 1 in Chenghua Kangxin Garden Garden, 2 in Yujing International, and 1 in Jingye Guesthouse Heat exchange stations of Reconstruction of 5 Jian’an Community, Industrial heat exchange 4 New Village, judicial bureau and stations and branch court, and branch pipelines: pipelines DN200 320m and DN250 425m Automation of 46 heat 5 23 23 exchange stations Heat metering improvement: 16,934 5,600 households 5,800 households 5,534 households 6 households and 108 36 public buildings 36 public buildings 36 public buildings public buildings Automatic monitoring 7 1 and command center 11 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 4. Impacts of the Subproject 4.1 Types and area of impacts of the Subproject The Subproject is located in the county. The main types of impacts of the Subproject are permanent land occupation during the construction of the heat exchange stations, and temporary land occupation during the construction of the heating pipelines. The Subproject involves neither LA nor HD, and only occupies a small amount of state-owned land permanently and occupation. 6.34 mu of land will be occupied for heat exchange stations, and 30.66 mu of land occupied temporarily during pipeline construction. Construction on roads and in residential areas will affect road traffic, residents’ daily life, and nearby stores’ business. The higher heating rate may increase the financial burden of poor households. 4.2 Permanent land occupation The 36 new heat exchange stations and 8 reconstructed ones will occupy 6.34 mu of state-owned land (120 m2 each for local stations and 3 m2 each for building stations on average). This land is located in residential communities and is reserved land offered for free by real estate developers. See Table 4-1. Table 4-1 Land occupied permanently for heat exchange stations Heat exchange stations Permanently occupied land (mu) Nature Number State-owned Collective Total 27 (local) 4.86 0 4.86 New construction 9 (building) 0.04 0 0.04 Expansion 8 1.44 0 1.44 Total 44 6.34 0 6.34 4.3 Temporary land occupation 30.66 mu of land will be occupied temporarily during pipeline construction, and is all located on existing state-owned urban roads. The Subproject involves neither LA nor HD. See Table 4-2. 12 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Table 4-2 Summary of new and reconstructed primary pipelines Floor area Component No. Segment Length (m) Diameter Width (m) Type of occupation (mu) Power plant gate southeast to highway 60 DN500 8 Driveway 0.18 1 Highway to Feicheng International Community 562 DN250 8 Sidewalk 1.69 Old Yehe River Bridge to Baipo West Road 354 DM500 8 Sidewalk 1.06 2 Primary Baipo West Road to Jianshe Street 830 DN500 8 Sidewalk 2.49 pipeline Kangning Garden on Zhongshan West Road to 621 DN500 8 Sidewalk 1.86 construction 3 Gangcheng Road Gangcheng Road to Baipo West Road 1200 DN400 8 Sidewalk 3.6 4 Dongchuan Street to Huaying Road 384 DN300 8 Driveway 1.15 Subtotal 4011 8 12.03 1 Time Town 130 DN250 5 Community road 0.39 2 Jingye Guesthouse 119 DN200 5 Community road 0.36 3 Runjing Garden 30 DN250 5 Community road 0.09 4 Longxing Garden 20 DN200 5 Community road 0.06 5 Wangzi Village 88 DN250 5 Community road 0.26 6 Shuxiang Garden 431 DN250 5 Community road 1.29 Connecting 7 Zizhu Garden 123 DN250 5 Community road 0.37 lines between 8 Feicheng International Community 222 DN250 5 Community road 0.67 new pipelines 9 Xiangxie Garden 146 DN250 5 Community road 0.44 and heat 10 Xicheng Garden 187 DN250 5 Community road 0.56 exchange 11 Yujing International 204 DN200 5 Community road 0.61 stations 12 Red Cross Hospital 100 DN150 5 Community road 0.3 13 Chenghua Garden 32 DN100 5 Community road 0.1 14 Kangxin Garden 225 DN200 5 Community road 0.67 15 Binhe Garden 127 DN150 5 Community road 0.38 16 Zhongshan Century Plaza 88 DN200 5 Community road 0.26 Subtotal 2272 6.82 13 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 1 Baipo East Road to coach station 1751 DN500 8 Sidewalk 5.25 Primary Wenmiao-Hongqi road junction to Dongguan 2 432 DN400 8 Driveway 1.3 pipeline Village reconstruction 3 Jianshe Street to Jinsanjiao 1010 DN400 8 Driveway 3.03 Subtotal 3193 Community road 9.58 Connecting 1 Jian’an Community 50 DN200 5 Community road 0.15 lines between 2 Pingshan Town 180 DN200 5 Community road 0.54 reconstructed 3 Industrial New Village 240 DN250 5 Community road 0.72 pipelines and 4 Judicial bureau 90 DN200 5 Community road 0.27 heat exchange 5 Court 185 DN250 5 Community road 0.55 stations Subtotal 745 2.23 Total 10221 30.66 14 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 4.4 other social impacts Some pipelines will be constructed on driveways, and run through busy roads and residents’ main activity areas, thereby causing inconvenience in daily life and work. In particular, this will affect the customer flow of some nearby stores. The higher heating rate may increase the financial burden of poor households. During project implementation, the heating rate will be increased from 15 yuan/m2 per quarter to 19 yuan/m2 per season, which might increase financial burden for poor households. The secondary heating network improvement and heat metering improvement to be carried out in connection with project activities might also have some impacts on local residents. 4.5 Measures to mitigate impacts (1) In order to minimize negative impacts of construction, the construction agency will take the following measures: conducting construction in stages and in a semi-enclosed manner to allow for the passage of pedestrians, bicycles and vehicles, defined access road spaces, taking safety measures, indicating construction sites visually, preventing flying dust by sprinkling and coverage, storing construction materials orderly and removing waste materials timely to reduce land occupation, and restoring the occupied land to the original condition timely after the completion of construction. (2) The heating subsidy for poor households is set at CNY400 per household per season. When heat rate is increased, to ensure poor households benefit equally from the Subproject, the Pingshan County Government should also increase the heat subsidy accordingly. (3) Make training and jobs first available to the poor and women. It is estimated that the Subproject will generate over 200 jobs at the construction stage, and 28 full-time jobs at the operation and maintenance stage. PCUHCO has promised to hire local laborers and provide them with basic skills training. PCUHCO should make such jobs first available to laborers in local poor households and ensure that at least 50% of such jobs are offered to women in order to increase their income and improve their social status. (4) The secondary heat network improvement and heating metering improvement should be explained to residents properly, and a preferential policy applied to MLS households. PCUHCO should make patient explanations to households concerned about impacts on interior decoration together with community property management companies and community workers, and organize field visits for them; all design, construction, and material cost in public area will be borne by heating company, and only material cost of inside apartments will be shared by residents. And MLS households should be still subject to a preferential policy and allowed to pay expenses in installments. (5) Strengthen information disclosure and public participation, and involve vulnerable groups. Extensive publicity should be given by means of TV, broadcast, bulletin board, brochure, etc., so that local residents are fully aware of the Subproject. In particular, detailed explanations should be made for doubts of local residents. FGDs involving all stakeholders should be held regularly to strengthen communication and consultation. At such FGDs, a certain percentage of participants should be from vulnerable groups so that their comments and suggestions are incorporated into solutions. A smooth appeal channel should be maintained to coordinate the interests of all stakeholders timely, and prevent issues and conflicts in advance. 5. Resettlement Policy Framework The ARAP under the project is compiled in accordance with the World Bank policy of OP/BP 15 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 4.12 and the laws, regulations and local rules of the People’s Republic of China. Resettlement implementation will be made by strictly abiding to the policies and criteria made in this resettlement plan. In case of any changes during the implementation, the World Bank will be kept informed in time. 5.1 Fundamental Policies The legal and policy frameworks of the resettlement action plan are as follows. ●Operational Policy on Involuntary Resettlement (OP/BP 4.12) ●The Law of Land Administration of the People's Republic of China (Adopted in June 1986, revised in 1988, 1998, 2004). ●Regulations on the Administration of Urban Roads (Decree [1996] No.198 of the State Council) ●Administrative Measures for the Collection of Urban Road Occupation and Excavation Fees (JC [1993] No.410) ●Notice of the Hebei Provincial Construction Commission on Forwarding the Administrative Measures for the Collection of Urban Road Occupation and Excavation Fees (HPCC [1994] No.6) ●Notice of the Hebei Provincial Construction Commission on Adjusting Rates of Ur ban Road Excavation and Restoration (HPCC [1997] No.175) 5.2 Related Laws and Regulations 5.2.1 Key Provisions from the World Band Operational Policy on Involuntary Resettlement (OP 4.12) The goal of resettlement plan by World Bank is to ensure that the resettled persons will be benefited from the project. As involuntary resettlement is an integral part of the project, the following activities should be performed at the initial and preparatory phase of the project. (1) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs. (2) 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 resettled by the project to share in project benefits. Resettled persons3 should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. (3) Resettled persons 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. (4) All the persons impacted by the project are provided prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project to improve or at least restore their living standard. "Replacement cost" is the method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets should not be taken into account. (5) All persons impacted by the project are to be benefited from the project. Subsidies should be provided in addition to the compensation for the losses of their property for restoration. The persons losing the property, equity, legal domicile permit, business, land exploitation, or building attributed directly to the project, should be treated the same as those with legitimate assets, equity or franchise, in life restoration and asset compensation. 5.2.2 Key Provisions from the Regulations on the Administration of Urban Roads Article 29 Only with the approval of the administrative department for municipal engineering may pipes, lines or pole lines be built attaching to urban roads. 16 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Article 31 When there is a need to temporarily occupy any urban road due to some special reasons, an approval must be obtained from the administrative department for municipal engineering and the department for the administration of public security and communications. Article 33 Those who are to dig urban roads for some engineering operation shall go through the procedures for examination and approval with the administrative department for municipal engineering and the department for the administration of public security and communications by producing the approval documents issued by the city planning department and relevant design papers. Article 35 Those approved to dig urban roads shall put clear signs and set up protective walls on the operation sites and, after the completion of the operation, immediately clean up the sites and notify the administrative department for municipal engineering for inspection. Article 36 Those approved to occupy or dig urban roads shall make the occupation or digging at the approved location and within the approved area and period. When there is a need to change the location or extend the area or period, they shall go through in advance the procedures for approving the changes. Article 37 Those occupying or digging urban roads under the administration of the administrative department for municipal engineering shall pay fees for the occupation or renovation-after-digging of urban roads to the said department. Fee rates for occupation of urban roads shall be drawn up by the administrative department for construction of the people's government of province or autonomous region or by the administrative department for municipal engineering of the people's government of municipality directly under the central government, and submitted to the departments of finance and price control at the same level for ratification. 5.2.2 Key Provisions from the Land Administration Law of the People's Republic of China Article 47 Land requisitioned shall be compensated for on the basis of its original purpose of use. Compensation for requisitioned cultivated land shall include compensation for land, resettlement subsidies and attachments and young crops on the requisitioned land. Compensation for requisition of cultivated land shall be six to ten times the average annual output value of the requisitioned land for three years preceding such requisition. Resettlement subsidies for requisition of cultivated land shall be calculated according to the agricultural population needing to be resettled. The agricultural population needing to be resettled shall be calculated by dividing the amount of requisitioned cultivated land by the average amount of the original cultivated land per person of the unit the land of which is requisitioned. The highest resettlement subsidies to be divided among members of the agricultural population needing resettlement shall not exceed fifteen times its average annual output value for the three years preceding such requisition. Standards of land compensation and resettlement subsidies for requisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for requisition of cultivated land. Standards for compensation for attachments and young crops on the requisitioned land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government. For requisition of vegetable plots in city suburbs, the land users shall pay towards a development and construction fund for new vegetable plots in accordance with the relevant regulations of the State. 17 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project If land compensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of this Article are still insufficient to help the peasants needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people’s governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsidies shall not exceed 30 times the average annual output value of the requisitioned land for the three years preceding such requisition. Article 48 After the plan for land compensation and resettlement fees is finalized, related local people's governments shall make an announcement and hear the opinions of the rural collective economic organizations and peasants whose land has been requisitioned. Article 49 The rural collective economic organization, the land of which is requisitioned, shall accept supervision by making known to its members the income and expenses of the compensation received for land requisition. The compensation and other charges paid to the unit for its land requisitioned is forbidden to be embezzled or misappropriated. Article 57 Where land owned by the State or by peasant collectives needs to be used temporarily for construction of projects or for geologic prospecting, the matter shall be subject to approval by the land administration departments of people's governments at or above the county level. However, if the land to be temporarily used is located in the area covered by urban planning, the matter shall be subject to agreement by the urban planning administration department concerned before it is submitted for approval. The land user shall, depending on who owns the land and who has the land-use right, enter into a contract for the temporary use of the land with the land administration department concerned, or the rural collective economic organization, or the villagers committee and pay compensation for it in accordance with the provisions of the contract. The temporary land user shall use the land for purposes stipulated in the contract for temporary use of the land and may not build permanent structures on it. Generally, the period for temporary use of land shall not exceed two years. 5.2.2 Key Provisions from the Administrative Measures for the Collection of Urban Road Occupation and Excavation Fees Article 2 Urban roads referred to herein mean roads within urban planning areas (including road land). All organizations and individuals occupying or excavating roads within urban planning areas must observe these measures. Article 3 Urban construction departments of local governments at or above county level shall be responsible for the collection of road occupation and excavation fees. Article 4 Organizations and individuals occupying roads temporarily for construction, storage, parking, marking or other special purposes must pay road occupation fees. Organizations and individuals excavating roads for construction, repair or other special purposes must pay excavation repair fees. Article 5 Road occupation fees shall be based on road grade, type of occupation (operating or else), use, etc. Excavation repair fees shall be based on road structure, age, material cost, etc. 5.2.3 The Notice of the Hebei Provincial Construction Commission on Adjusting Rates of Urban Road Excavation and Restoration (HPCC [1997] No.175) Road occupation and excavation fees shall include road excavation fees, ditch filling fees and road occupation fees. Their rates are set out in Tables 5-1, 5-2 and 5-3. Table 5-1 Road excavation rates 18 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 2 No. Item Rate (yuan/m ) Remarks 1 Concrete pavement repair 230 1) Tripled for roads completed within 2 Asphalt pavement repair 180 two years, doubled for roads 3 Ordinary tile sidewalk repair 100 completed within 3-5 years 4 Square concrete tile sidewalk repair 150 2) Doubled for excavation during 5 Color tile sidewalk repair 210 winter (from November to March) 6 Concrete curbstone repair 45 Table 5-2 Ditch filling rates 2 No. Item Rate (yuan/m ) Remarks 1 Sand filling to depth of 0-1m 90 Filling is performed by 2 Sand filling to depth of 1-2m 140 administrative departments 3 Sand filling to depth of over 2m 230 of municipal facilities to 4 Sand filling to depth of 0-1m 60 specified density and 5 Sand filling to depth of 1-2m 70 humidity. 6 Sand filling to depth of over 2m 100 2 Table 5-3 Road occupation rates (yuan/m per day) Primary trunk Secondary Branch trunk Item Alleys Remarks roads trunk roads roads Shed 1.5 1 0.8 0.5 Not exceeding Stall 1 0.5 0.3 0.2 these rates for Construction 0.3 0.2 0.15 0.1 Shijiazhuang City Vehicle parking 0.4 0.3 0.2 0.1 Bicycle parking 0.2 0.15 0.1 0.05 Marketplace 0.2 0.1 5.3 Entitlement of affected Persons Any person affected by the project is entitled to the rights as shown in Table 5-4. Table 5-4 Entitlement Matrix Impact category Entitlement Policies and measures subject of responsibility conducting construction in stages and in a semi-enclosed manner to allow for the passage of pedestrians, bicycles and vehicles, erecting access roads and bridges, convenient taking safety measures, indicating The construction enterprise, transportation construction sites visually, storing the owner traffic safety construction materials orderly and removing waste materials timely to Pedestrians reduce land occupation, and motor vehicle restoring the occupied land to the shops original condition timely after the completion of construction. Environmental preventing flying dust by sprinkling The construction enterprise, health and coverage, the owner conducting construction in stages The number and in a semi-enclosed manner to The construction enterprise, of customers allow for the passage of the owner pedestrians, bicycles and vehicles, 19 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Concentration of construction, speed up the construction progress 6. Compensation for road occupation and excavation According to the Administrative Measures for the Collection of Urban Road Occupation and Excavation Fees promulgated by the Ministry of Construction and Ministry of Finance, excavation repair fees (including ditch filling fees) and road occupation fees should be paid for urban road occupation during pipeline construction in the Subproject. Excavation repair fees are included in the construction budget of the Subproject and are estimated to be 35.3497 million yuan. 6.1 Fee rates （1）Road excavation rates Table 6-1 Road excavation rates Type of Type of 2 Component No. Segment Age Rate (yuan/m ) occupation pavement Power plant gate southeast to Driveway Concrete >6 years 230 highway 1 Highway to Feicheng International Sidewalk Concrete >6 years 230 Community Square Old Yehe River Bridge to Baipo Sidewalk concrete >6 years 150 West Road 2 tile Primary pipeline Baipo West Road to Jianshe Sidewalk Color tile >6 years 210 construction Street Kangning Garden on Zhongshan West Sidewalk Concrete <2 years 230+230×2=690 3 Road to Gangcheng Road Gangcheng Road to Baipo West Sidewalk Concrete <2 years 30+230×2=690 Road Dongchuan Street to Huaying 4 Driveway Concrete <2 years 30+230×2=690 Road 1 Baipo East Road to coach station Sidewalk Color tile >6 years 210 Primary pipeline Wenmiao-Hongqi road junction to 2 Driveway Concrete >6 years 230 reconstruction Dongguan Village 3 Jianshe Street to Jinsanjiao Driveway Concrete >6 years 230 （2）Ditch filling rates Table 6-2 Ditch filling rates 2 Excavation depth and filling type Rate (yuan/m ) Sand: 400mm, earth: 1.3m 90 (sand) + 70 (earth) = 160 （3）Road occupation rates Table 6-3 Road occupation rates Type of Days of Rate Component No. Segment Road 2 occupation occupation (yuan/m ) Primary Power plant gate southeast to highway Driveway Trunk road 30 4.5 pipeline 1 Highway to Feicheng International Branch Sidewalk 30 4.5 construction Community road 20 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Old Yehe River Bridge to Baipo West Branch Sidewalk 60 9 2 Road road Baipo West Road to Jianshe Street Sidewalk Trunk road 60 9 Kangning Garden on Zhongshan West Sidewalk Trunk road 60 9 3 Road to Gangcheng Road Gangcheng Road to Baipo West Road Sidewalk Trunk road 60 9 Branch 4 Dongchuan Street to Huaying Road Driveway 30 4.5 road 1 Baipo East Road to coach station Sidewalk Trunk road 60 9 Primary Wenmiao-Hongqi road junction to pipeline 2 Driveway Trunk road 60 9 Dongguan Village reconstruction 3 Jianshe Street to Jinsanjiao Driveway Trunk road 60 9 6.2 Pavement restoration fees and road occupation fees For pipeline construction under the Subproject, pavement restoration fees of 5.1826 million yuan, ditch filling fees of 2.3053 million yuan and road occupation fees of 27.8618 million yuan will be paid in total. 21 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Table 6-4 Pavement restoration fees Excavation Type of Floor area Excavation repair Ditch filling fees Component No. Segment Length (m) 2 width (m) occupation (m ) fees (0,000 yuan) (0,000 yuan) Power plant gate southeast to 60 2 Driveway 120 2.76 1.92 highway 1 Highway to Feicheng 562 2 Sidewalk 1124 25.85 17.98 International Community Old Yehe River Bridge to Baipo 354 2 Sidewalk 708 10.62 11.33 2 West Road Primary Baipo West Road to Jianshe Street 830 2 Sidewalk 1660 34.86 26.56 pipeline Kangning Garden on Zhongshan construction 621 2 Sidewalk 1242 85.70 19.87 West Road to Gangcheng Road 3 Gangcheng Road to Baipo West 1200 2 Sidewalk 2400 165.60 38.40 Road Dongchuan Street to Huaying 4 384 2 Driveway 768 52.99 12.29 Road Sub- total 4011 8022 378.38 128.35 1 Time Town 130 2 Community road 260 0 0 2 Jingye Guesthouse 119 2 Community road 238 0 0 3 Runjing Garden 30 2 Community road 60 0 0 4 Longxing Garden 20 2 Community road 40 0 0 5 Wangzi Village 88 2 Community road 176 0 0 Connecting 6 Shuxiang Garden 431 2 Community road 862 0 0 lines between 7 Zizhu Garden 123 2 Community road 246 0 0 new pipelines 8 Feicheng International Community 222 2 Community road 444 0 0 and heat 9 Xiangxie Garden 146 2 Community road 292 0 0 exchange 10 Xicheng Garden 187 2 Community road 374 0 0 stations 11 Yujing International 204 2 Community road 408 0 0 12 Red Cross Hospital 100 2 Community road 200 0 0 13 Chenghua Garden 32 2 Community road 64 0 0 14 Kangxin Garden 225 2 Community road 450 0 0 15 Binhe Garden 127 2 Community road 254 0 0 22 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 16 Zhongshan Century Plaza 88 2 Community road 176 0 0 Sub- total 2272 2 4544 0 0 1 Baipo East Road to coach station 1751 2 Sidewalk 3502 73.54 56.03 Primary Wenmiao-Hongqi road junction to pipeline 2 432 2 Driveway 864 19.87 13.82 Dongguan Village reconstructio 3 Jianshe Street to Jinsanjiao 1010 2 Driveway 2020 46.46 32.32 n Sub- total 3193 6386 139.87 102.18 Connecting 1 Jian’an Community 50 2 Community road 100 0 0 lines between 2 Pingshan Town 180 2 Community road 360 0 0 reconstructed 3 Industrial New Village 240 2 Community road 480 0 0 pipelines and 4 Judicial bureau 90 2 Community road 180 0 0 heat 5 Court 185 2 Community road 370 0 0 exchange Sub- total 745 1490 0 0 stations Total 10221 14408 518.26 230.53 Note: Through consultation with local authorities, it is only necessary to restore pavements of community roads occupied during pipeline construction after completion without paying any fee. Table 6-5 road occupation fees Days of Floor area Occupation fees Component No. Segment Length (m) Width (m) Road 2 occupation (m ) (0,000 yuan) Power plant gate southeast to 60 8 Trunk road 30 480 6.48 highway 1 Highway to Feicheng 562 8 Branch road 30 4496 60.70 International Community Primary pipeline Old Yehe River Bridge to Baipo 354 8 Branch road 60 2832 152.93 construction West Road 2 Baipo West Road to Jianshe 830 8 Trunk road 60 6640 358.56 Street Kangning Garden on Zhongshan 3 621 8 Trunk road 60 4968 268.27 West Road to Gangcheng Road 23 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Gangcheng Road to Baipo West 1200 8 Trunk road 60 9600 518.40 Road Dongchuan Street to Huaying 4 384 8 Branch road 30 3072 41.47 Road Sub- total 4011 32088 0.00 Community 1 Time Town 130 5 650 0.00 road Community 2 Jingye Guesthouse 119 5 595 0.00 road Community 3 Runjing Garden 30 5 150 0.00 road Community 4 Longxing Garden 20 5 100 0.00 road Community 5 Wangzi Village 88 5 440 0.00 road Community Connecting lines 6 Shuxiang Garden 431 5 2155 0.00 road between new Community pipelines and heat 7 Zizhu Garden 123 5 615 0.00 road exchange stations Community 8 Feicheng International Community 222 5 1110 0.00 road Community 9 Xiangxie Garden 146 5 730 0.00 road Community 10 Xicheng Garden 187 5 935 0.00 road Community 11 Yujing International 204 5 1020 0.00 road Community 12 Red Cross Hospital 100 5 500 0.00 road 13 Chenghua Garden 32 5 Community 160 0.00 24 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project road Community 14 Kangxin Garden 225 5 1125 0.00 road Community 15 Binhe Garden 127 5 635 0.00 road Community 16 Zhongshan Century Plaza 88 5 440 0.00 road Sub- total 2272 5 11360 0.00 1 Baipo East Road to coach station 1751 8 Trunk road 60 14008 756.43 Wenmiao-Hongqi road junction to Primary pipeline 2 432 8 Trunk road 60 3456 186.62 Dongguan Village reconstruction 3 Jianshe Street to Jinsanjiao 1010 8 Trunk road 60 8080 436.32 Sub- total 3193 25544 0.00 Community 1 Jian’an Community 50 5 250 0.00 road Community 2 Pingshan Town 180 5 900 0.00 Connecting lines road between Community 3 Industrial New Village 240 5 1200 0.00 reconstructed road pipelines and heat Community 4 Judicial bureau 90 5 450 0.00 exchange stations road Community 5 Court 185 5 925 0.00 road Sub- total 745 5 3725 0.00 Total 10221 72717 2786.18 Note: Through consultation with local authorities, it is only necessary to restore pavements of community roads occupied during pipeline construction after completion without paying any fee. 25 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 7. Public participation and grievance redress 7.1 Public Participation The importance has been attached to public participation and communications in the process of compiling the resettlement action plan. The public participation will be further encouraged in implementation phase. 7.1.1 Public Participation during ARAP Compiling Phase During November and December 2014, the staff of PCUHCO conducted extensive consultation with local officials and residents while conducting the impact survey to collect their comments and suggestions on the Subproject and the ARAP, and communicate the grievance redress procedure. During the survey, the task force conducted adequate, equal consultation with local residents to collect their needs and suggestions to be incorporated into the subproject design. At FGDs and in personal interviews, the task force introduced the scope of construction, objectives and potential social impacts of the Subproject, and collected comments and suggestions from local residents, especially from the poor and women. 7.1.2 Public Participation during the Implementation of the ARAP Public participation will be encouraged in the whole process of implementation of the ARAP: 1) Public participation during construction planning: During construction planning, mainly the planning of heat exchange stations and heating pipelines, an FGD involving sub-district and community officials, and residents will be held to collect their comments. 2) Public participation during construction: During construction, the owner and the construction agency will communicate with the APs and affected entities frequently, encourage them to give suggestions on alleviating impacts, and supervise the construction process to minimize inconvenience during construction, and ensure the safety of primary and high school students. 3) Participation in construction: During construction, the construction agency will hire local laborers first equal conditions and give priority to laborers in vulnerable households and female laborers through consultation with the affected communities. 7.2 Grievance Mechanism and Channels The public participation is always encouraged in both phases of compilation and implementation of the ARAP. However, it is inevitable to encounter more or less problems in actual process. Therefore, it is necessary to timely solve these problems to ensure the smooth progress in project construction, In addition to the existing governmental channels for filing complaints and grievance (including the offices of complaints and appeals at county, municipal and provincial levels, the law enforcement departments of supervision, jurisdiction and prosecution, and the department of disciplinary inspection), a public and effective assess to filing the complaints and grievance has been provided specifically for this project.The grievance redress procedure of the Subproject is as follows: Stage 1: If any AP is dissatisfied with the ARAP or its implementation, he/she may file an oral or written appeal with the community/village committee or PCUHCO. In case of an oral appeal, the community/village committee or PCUHCO should prepare written records. A disposition should be made within one week. Stage 2: If the appellant is dissatisfied with the disposition of Stage 1, he/she may file an appeal with the town housing and urban-rural development office, which should make a disposition within two weeks. Stage 3: If the appellant is dissatisfied with the disposition of Stage 2, he/she may apply for 26 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project administrative arbitration with the county housing and urban-rural development bureau, which should make an award within two weeks. Stage 4: If the appellant is dissatisfied with the arbitration award, he/she may bring a suit in a civil court in accordance with the Civil Procedure Law. 8. The organization 8.1 Organization setup and function The Foreign Loan Management Center, Hebei Provincial Finance Department is the province-level leading organization of the Subproject, the Pingshan County Government the executing agency, PCUHCO the implementing agency. The Pingshan County Government has established the subproject leading group, which is headed by the deputy county head in charge, and composed of chief leaders of the county departments concerned, including finance, land and resources, audit, price control, etc. The group is responsible for the unified leadership of the Subproject, coordinating the county departments concerned, and solving major issues in subproject preparation and implementation. The implementing agency PCUHCO is responsible for: 1) organizing subproject preparation and design; 2) organizing subproject implementation, including bidding and contracting; 3) supervising construction and equipment installation, and conducting on-site inspection; 4) organizing and supervising the implementation of the Environmental Management Plan and the ARAP; 5) raising counterpart funds and repaying the Bank loan; and 6) operating and maintaining facilities constructed under the Subproject. 8.2 Staffing In order to facilitate impact restoration, the owner has established the Subproject Impact Restoration Leading Group, and a smooth information channel. Its staff is composed of specialized technicians and administrators, and has considerable experience in resettlement and coordination. See Table 8-1. 表 8-1 Staffing of the Impact Restoration Agencies Title in Agency Name Gender Title Responsible for project Team Zhang Jjianming Male Director of PCUHCO Planning & coordination leader Impact Deputy Su Mingxia Female Section Chief of PCUHCO Administration Restoratio leader n Leading Deputy Li huai-yi Male Office Director of PCUHCO Administration Group leader Male Deputy Lu Zhiyong Section Chief of PCUHCO Engineering technology leader Male Administration Public Li Huaiyi Office Director of PCUHCO Director relations Staff Office Zhang Guoting Female Staff of PCUH Public relations member Staff Tan Zhongping Male Staff of PCUH Project management member 27 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 9. M&E In order to ensure the smooth implementation of the resettlement action plan, the whole process will be monitored in perspectives rehabilitation in the project. Both the internal and external monitoring will be applied. The ARAP and social impacts will be monitored, including internal and external monitoring. 9.1 Internal Monitoring Internal monitoring will be implemented by the PMO. The PMO staff has participated in the preparation of the ARAP, and assisted the social assessment agency in social assessment to learn the Subproject’s potential negative social impacts during and after construction. The scope of internal monitoring includes: 1) Implementation of the policies in the ARAP and social assessment report; 2) Grievances and appeals of the APs; 3) Mitigation or elimination of negative social impacts; 4) Public participation and consultation; 5) Support for vulnerable groups; and 6) Satisfaction of beneficiary population 9.2 External M&E External M&E is regular M&E on the Subproject’s social impacts out of the implementing agencies to see if negative social impacts have been mitigated or eliminated, and if the expected objectives and benefits are met. Through external M&E, comments and suggestions on mitigating or eliminating negative social impacts will be proposed, an early warning system will be provided to the PMO and a feedback channel provided to the affected population. The subproject owner will appoint an independent M&E agency to conduct external M&E on the implementation of the ARAP. The main external M&E indicators are: 1) Progress: including construction progress, growth of beneficiary population, etc.; 2) Quality: satisfaction of beneficiaries during project implementation, etc.; 3) Ability to pay: ability to pay of residents after heating rate increase, especially poor households 4) Grievance redress: if grievances and appeals during and after construction have been addressed, etc. At the construction stage, the external M&E agency will conduct two rounds of M&E, and submit two M&E reports to the Bank annually. After the completion of construction and impact restoration, it will submit a summary M&E report to the Bank. 10. Relevant documents On December 15, 2011, the Pingshan Central Heating Office issued the Regulatory Requirements for the Construction of Central Heating Facilities (PCHO [2011] No.7), proposing requirements for the construction of heat exchange stations, as attached below. 28 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 29 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 30 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 31 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 32 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project Appendix 1: Due diligence on Xibaipo Power Generation Co., Ltd. 1. Introduction to Xibaipo Power Generation Co., Ltd. Xibaipo Power Generation Co., Ltd., formerly Xibaipo Power Plant founded in August 1991, is located southeast of the Pingshan county town, Shijiazhuang City, being an ultra-large thermal power generation enterprise. The two shareholders of the company are Hebei Construction Investment Corp. and Hebei Power Corp. The company has 4×330MW+2×600MW units with a total installed capacity of 2.4 million kW. And a workforce of 1,684. In 2009, PCUHCO identified Xibaipo Power Plant as the heating source of the Subproject. 2. Land occupation Xibaipo Power Generation Co., Ltd. has a floor area of over 200 mu, and land use right of this site was acquired as early as the 1990s. There is no outstanding issue. Appendix 2: LA and Resettlement Due Diligence on the Zhongshan West-Gangcheng Connecting Road 1. Overview The new primary pipelines under the Subproject are divided into 4 segments, with a total length of 4,011m, in which the Kangning Garden on Zhongshan West Road to Gangcheng Road and Gangcheng Road to Baipo West Road segments with a total length of 1,821m will be constructed on the Zhongshan West-Gangcheng Connecting Road – a new urban road that broke ground in May 2013 and whose main part has been completed. 94 mu of land in Mengxianbi Village, Pingshan Town, including 5 mu of irrigated land, 15 mu of vegetable land and 74 mu of housing land, has been acquired, and houses of 23,000 m2 demolished for the Zhongshan West-Gangcheng Connecting Road, affecting 202 households with 698 persons in total. LA and HD were completed in April 2013, and the village committee has entered into compensation agreements with all AHs as witnessed by the Pingshan County Housing and Urban-Rural Development Bureau, and the Pingshan Town Government. All APs have been resettled properly and there is no outstanding issue. See Chapter 9 of this report for the sample LA compensation and resettlement agreement. 2. Overview of the Zhongshan West-Gangcheng Connecting Road Pingshan County is the county with the largest land area and population in Shijiazhuang City, but its traffic is undeveloped. In this context, road network construction is a priority of urbanization in this county. The Zhongshan West-Gangcheng Connecting Road is a key infrastructure construction project in the county town in 2013. It will mitigate local traffic pressure greatly, and promote local economic development and urban-rural integration. The Zhongshan West-Gangcheng Connecting Road is located in northern Mengxianbi Village, Pingshan Town, with a full length of 621m. It broke ground in April 2013 and has been largely completed to date. 3. Overview of the affected area Pingshan Town is located in southeastern Pingshan County, and is the political, economic, cultural and trading center of Pingshan County. The town has a land area of 95 km2, a cultivated area of 59,378 mu, a hilly area of 19,000 mu and an aquaculture water surface area of 4,750 mu, and governs 63 villages. At the end of 2013, the town had 38,891 households with 118,075 persons, including a nonagricultural population of 38,788. In 2013, the town’s GDP was 664.61 million yuan. The town has Xibaipo Science Park and Guanglushan Building Material Park. Xibaipo Power Plant 33 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project – the largest thermal power plant in northern China – is located in Xibaipo Science Park. Mengxianbi Village is located on the west edge of the Pingshan county town, and has 525 households with 2,100 persons, a primary school, three health centers and a cultivated area of 1,206 mu. The main food crops are wheat and corn. The main income sources of villagers are crop cultivation, commerce, services and outside employment, and their per capita annual income is 6,384 yuan. 4. LA and HD impacts 94 mu of land in Mengxianbi Village, including 5 mu of irrigated land, 15 mu of vegetable land and 74 mu of housing land, has been acquired, and houses of 23,000 m2 demolished for the Zhongshan West-Gangcheng Connecting Road. 80 households with 281 persons are affected by the acquisition of cultivated land, 132 households with 462 persons by the acquisition of housing land and HD, and 10 households with 45 persons affected by both LA and HD. See Tables 4-1 and 4-2. Table 4-1 Summary of LA and HD 2 LA area and type (mu) HD size and structure (m ) Housing Irrigated Vegetable Single- stored Multi-stored Total Total Basements land land land houses houses 94 74 5 15 23,000 20,000 2,800 20 Table 4-2 LA and HD impacts Total Affected by LA Affected by HD Affected by both LA and HD Households Persons Households Persons Households Persons Households Persons 202 698 80 281 132 462 10 45 5. Impact analysis LA and HD for the Zhongshan West-Gangcheng Connecting Road have reduced the cultivated area of Mengxianbi Village and forced some villagers to relocate, thereby imposing production and livelihood impacts on local villagers. In general, villagers are affected slightly by LA and more seriously by HD. 5.1 Permanent LA Mengxianbi Village has 525 households with 2,100 persons and 1,206 mu of cultivated land (0.57 mu per capita). 20 mu of cultivated land has been acquired for the Zhongshan West-Gangcheng Connecting Road, affecting 80 households with 281 persons, with per capita land loss of 0.07 mu, accounting for 12.5% of per capita cultivated area. In general, the AHs are affected slightly by LA due to low land loss rate. It is estimated that the per capita annual income loss of the APs is 231.5 yuan, accounting for 3.3% of per capita gross annual income. 5.2 HD 74 mu of housing land has been acquired and houses of 23,000 m2 demolished for the Zhongshan West-Gangcheng Connecting Road, affecting 132 households with 462 persons, accounting for 25.1% of all households in the village. According to consultation, all AHs support HD. 87% of the demolished houses are single-storied ones and in poor condition. Mengxianbi Village is located on the west edge of the county town, where industry and commerce are undeveloped, and villagers earn income from agriculture and outside employment mainly. With the progress of urbanization in recent years, some urban villages in the county town have developed rapidly, and villagers have improved residential conditions, and owned more residential and commercial properties, so that they can earn more nonagricultural income by leasing properties or doing 34 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project business. The Zhongshan West-Gangcheng Connecting Road will improve the traffic of Mengxianbi Village greatly, promote its development and increase local real property prices. Therefore, the households affected by HD expect to improve their living environment through this project. 6. Resettlement policy framework 6.1 Applicable policies and regulations The laws and policies applicable to the Zhongshan West-Gangcheng Connecting Road include: ●Land Administration Law of the People’s Republic of China (adopted in June 1986, amended in 2004) ●Notice of the Ministry of Land and Resources on Developing Uniform AAOV Rates and Location-based Land Prices for Land Acquisition (MLR [2005] No.114) ●Measures for the Administration of Rural Housing Land of Hebei Province (Decree [2002] No.7 of the Hebei Provincial Government, July 2002) ●Land Regulations of Hebei Province (amended in May 2005) ●Notice of the Hebei Provincial Government on Practicing Location-based Land Prices for Land Acquisition (HPG [2008] No.132, December 31, 2008) ●Notice of the Hebei Provincial Government on Amending Location-based Land Prices for Land Acquisition (HPG [2011] No.141, December 31, 2011) 6.2 Applicable provisions 1. Applicable provisions of the Land Administration Law Article 2 The state may acquire collectively owned land for public benefits. 2. Applicable provisions of the Measures for the Administration of Rural Housing Land of Hebei Province Article 12 The right to use the following housing land may be withdrawn through application by a village committee with the township land administration authority, review by the county/municipal land administration authority, and approval by the county/municipal government: 1) Housing land to be adjusted for village and market town reconstruction; 2) Housing land to be occupied for township infrastructure and public welfare construction; 3) Housing land of any additional house(s) of rural households; 4) Housing land emptied by rural five-guarantee households; 5) Housing land not used for the approved purpose for two consecutive years; and 6) Other housing land to be withdrawn as stipulated by the county/municipal government. If the right to use housing land is withdrawn under paragraphs 1, 2 and 3, the village committee shall grant appropriate compensation to the right holder based on the appraised price of ground attachments. Article 13 In our province, each rural household shall have only one piece of housing land. Rural housing land area shall be as follows: 1) Not more than 200 m2 for counties/cities in plains or hilly areas with a per capita cultivated area of less than 1,000 m2; and 2) Not more than 233 m2 for counties/cities in plains or hilly areas with a per capita cultivated area of 1,000 m2 or more. County/municipal governments may fix rural housing land areas within the above limits based on local conditions. Article 14 If a rural household has two or more pieces of housing land, any excess piece shall be transferred to an eligible rural household subject to approval hereunder. If a rural household has two or more pieces of housing land, and any excess piece has not 35 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project been transferred for two years, such excess piece shall be withdrawn through application by a village committee with the township land administration authority, review by the county/municipal land administration authority, and approval by the county/municipal government. Article 15 If a rural household is separated from its collective economic organization, and the house on its housing land is damaged and unusable, its housing land shall be withdrawn by the village committee without compensation pursuant to Article 14 above. 3. Applicable provisions of the Notice of the Hebei Provincial Government on Amending Location-based Land Prices for Land Acquisition The location-based land prices for land acquisition in the Notice of the Hebei Provincial Government on Practicing Location-based Land Prices for Land Acquisition (HPG [2008] No.132) have been amended in order to improve compensation for land acquisition, protect farmers’ lawful rights and interests, and ensure the availability of construction land. These prices shall come into effect from January 1, 2012. Table 6-1 Location-based land prices of Pingshan County (unit: yuan/mu) Average location- Tier-1 Tier-2 Tier-3 Tier-4 Tier-5 Tier-6 Division based land price area area area area area area Shijiazhuang City 63671 Pingshan County 60474 120000 80000 65000 60000 50000 40000 Mengxianbi Village is a Tier-2 area in Pingshan County, where location-based land price is 80,000 yuan/mu. 6.3 Compensation and resettlement policies 6.3.1 Compensation policy for permanent LA The Pingshan County Urban Construction Headquarters, and the Pingshan County Housing and Urban-Rural Development Bureau have developed the Compensation Program for Land Acquisition and Occupation for the Zhongshan West-Gangcheng Connecting Road, specifying the compensation modes and rates. 1. Compensation modes There are two modes: ① one-time cash compensation; and ② land replacement for housing. 2. Compensation rates ① Cash compensation: 120,000 yuan/mu of land, plus a reward and a resettlement subsidy of 230,000 yuan, totaling 350,000 yuan/mu ② Land replacement for housing: 260 m2 of housing per mu of land ③ Young crop compensation: 500 yuan/mu of non-irrigated land, 2,000 yuan/mu of vegetable land 3. Size difference in land replacement Any excess housing area of not more than 10m2 will be purchased at 1,800 yuan/m2, 10-20m2 (including 20m2) purchased at 2,000 yuan/m2, 20-30m2 (including 30m2) purchased at 2,200 yuan/m2, and over 30m2 purchased at market price. Any excess land will be disposed of by the household itself. 4. Reward: Any household that enters into an agreement on schedule will receive a reward of 40m2/mu. 5. Handover time: within 18 months from the commencement of construction; in case of failure of handover on schedule, the contractor will pay interests on the housing price except for force majeure. 6. Handover criteria: multi-storied, with elevator, water supply, power supply, heating, cement 36 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project floor, wall plastering, steel doors and windows, burglarproof main door, interphone system, reserved natural gas joint, telephone and network lines 7. House allocation: Households will choose houses in order of agreement signing. 8. Ownership registration: The owner will go through the ownership registration formalities in a unified manner. 6.3.2 Compensation and resettlement policy for HD The Mengxianbi Village Committee has developed a property swap program for Mengxianbi Village pursuant to the Compensation Program for Land Acquisition and Occupation for the Zhongshan West-Gangcheng Connecting Road, specifying the property swap rates, prices and subsidies, etc. 1. Property swap ① Resettlement housing size is equal to housing land area. ② Any excess resettlement housing size will be compensated for at construction cost at a time. ③ Basements will be swapped at a ratio of 1:1. 2. Price calculation of resettlement housing ① Any excess resettlement housing size of not more than 8m2 will be purchased at the preferential price of 2,000 yuan/m2, and any excess size beyond 8m2 at market price. ② Any deficient resettlement housing size will be compensated for at 2,000 yuan/m2. ③ Basements will be purchased at the preferential price of 880 yuanm2. 3. Moving subsidy: If a household has entered into an agreement, a moving subsidy of 8 yuan/m2 of former housing land (paid twice) will be paid. 4. Transition subsidy: 8 yuan/m2 of former housing land per month, paid for the first 12 months at a time and then quarterly, to be increased by 50% if the transition period is extended for not more than 12 months, 75% if more than 12 months but not more than 24 months, or 100% if more than 24 months 5. Relocation fees ① Telephone: 88 yuan each, paid twice; ② Cable TV: 150 yuan each, paid twice; ③ Air-conditioner: 200 yuan each for the cabinet type, 150 yuan each for the wall-mounted type, 100 yuan each for the window-mounted type, paid twice; ④ Broadband: 100 yuan each, paid twice; ⑤ 3-phase TV: 400 yuan per household, paid once; ⑥ Water heater: 100 yuan each, paid once 6. Reward ① 95 yuan/m2 of former housing land and granting an extra housing size of 8% if a household enters into an agreement and preparing its house for demolition within 7 days ② 75 yuan/m2 of former housing land and granting an extra housing size of 4% if a household enters into an agreement and preparing its house for demolition within 14 days ③ 45 yuan/m2 of former housing land if a household enters into an agreement and preparing its house for demolition within 19 days 7. After the determination of the range of HD, newly built, expanded or reconstructed buildings, illegal buildings and temporary buildings will not be compensated for. 8. Handover criteria for resettlement housing: the same as those specified in the Compensation Program for Land Acquisition and Occupation for the Zhongshan West-Gangcheng Connecting Road 37 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 7. Resettlement progress 7.1 Resettlement housing construction The resettlement housing in Xiangxie Garden broke ground in June 2013, 200 meters away from Mengxianbi Village, where the average market price of housing is 2,800 yuan/m2. The resettlement housing is in 11-storied buildings, and available in a number of sizes within 80-140 m2. The 1# and 2# buildings were completed in May 2014. 7.2 Resettlement According to the survey, all the 80 households affected by LA have chosen land replacement for housing. All the 132 households affected by HD have entered into compensation and resettlement agreements with the village committee, and receive moving and transition subsidies. All their houses have been demolished, and they are living in leased houses in the village. It is expected that they will be allocated new houses in the first half of 2015 and move into new houses in the second half of 2015. 8. Effectiveness of resettlement The compensation and resettlement work of the Zhongshan West-Gangcheng Connecting Road was conducted in conformity with the applicable state and provincial regulations and policies. The Pingshan County Housing and Urban-Rural Development Bureau, Pingshan County Urban Construction Headquarters, and Pingshan Town Government attached great importance to consultation with the affected village committee and villagers. The Mengxianbi Village Committee issued the property swap program for Mengxianbi Village through repeated consultations, which was adopted at a village congress. All compensation and resettlement agreements were accepted by the AHs. The resettlement work was implemented successfully. Most of the AHs are satisfied with the compensation rates and resettlement programs. 9. Relevant documents The following document is the sample LA compensation and resettlement agreement between the Mengxianbi Village Committee and an AH. 38 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 39 ARAP of the World Bank-financed Pingshan County Urban Central Heating Facility Improvement and Expansion Project 40