Resettlement Action Plan - World Bank fileResettlement Action Plan Shanxi Energy CBM Investment...

China Shanxi Coalbed Methane Development and

Utilization Project

Resettlement Action Plan

Shanxi Energy CBM Investment Holding Co., Ltd.

March 2008

RP671

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RAP of Shanxi Coalbed Methane Development and Utilization Project

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Table of Contents Objectives of Resettlement Plan & Definitions of Resettlement Terms..........................................................5

1. Overview ...................................................................................................................................................12

1.1 Project background ....................................................................................................................12

1.2 Project overview........................................................................................................................12

1.3 Social and economic benefits of the project ..............................................................................13

1.4 Planned schedule .......................................................................................................................14

1.5 Measures to mitigate project impacts ........................................................................................14

1.6 Project Design and Approval .....................................................................................................15

1.7 Preparation of resettlement plan ................................................................................................15

1.8 Development of resettlement action plan .......................................................................................17

1.9 References and objectives of this RAP...........................................................................................17

2. Social and economic overview of the project affected areas.....................................................................18

2.1 Project County - Qinshui County ...................................................................................................18

2.2 Project Towns: Duanshi and Zhengzhuang...................................................................................19

2.3 Basic Condition of Project Affected Villages ................................................................................20

2.4 Basic information on the work and life of affected households .....................................................22

3. Project impacts ..........................................................................................................................................25

3.1 Identification of land acquisition scope..........................................................................................25

3.2 Method of Impact Survey ..............................................................................................................26

3.3 Major physical indicators on project impacts ................................................................................27

3.4 Vulnerable groups affected by the project ......................................................................................32

3.5 Analysis on the impacts of the project............................................................................................32

4. Legal Framework of Compensation Policies.............................................................................................33

4.1 Policy references ............................................................................................................................33

4.2 Relevant laws and regulations ........................................................................................................34

4.3 Compensation standards.................................................................................................................45

4.4 Entitlement Matrix of project affected people................................................................................48

5. Income Restoration and Rehabilitation Plan .............................................................................................49

5.1 Objective and Principle of economic rehabilitation plan................................................................49

5.2 Rehabilitation Task .........................................................................................................................51


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5.3 Rehabilitation for Those affected by Permanent Land Acquisition................................................51

5.4 Rehabilitation for Those affected by Temporary Land Occupation................................................55

5.5 Use and supervision of land acquisition compensation..................................................................56

6. Resettlement Cost Estimate .......................................................................................................................57

6.1 Estimate of Total Land Acquisition Cost........................................................................................57

6.2 Impact compensation expenses ......................................................................................................60

7. Resettlement plan implementation ............................................................................................................63

7.1 Implementation sequence ...............................................................................................................63

7.2 Land acquisition and resettlement schedule ...................................................................................64

7.3 Fund flow and payment plan ..........................................................................................................65

8. Organization structure ...............................................................................................................................67

8.1 Organization setup..........................................................................................................................67

8.2 Organization composition and responsibilities...............................................................................67

8.3 Staffing ...........................................................................................................................................69

9. Public participation and consultation mechanism......................................................................................72

9.1 Public participation.........................................................................................................................72

9.2 Complaining and appealing mechanism and channel.....................................................................75

10. Monitoring and Evaluation......................................................................................................................76

10.1 Internal monitoring.......................................................................................................................76

10.2 External monitoring and evaluation..............................................................................................77

11. Report development plan.........................................................................................................................80

11.1 Resettlement action plan...............................................................................................................80

11.2 Resettlement progress report ........................................................................................................80

11.3 Independent resettlement monitoring and evaluation report.........................................................80

Annex 1: Resettlement Information Booklet for Shanxi Coalbed Methane Development and Utilization

Project............................................................................................................................................................82

Annex 2: Resettlement Action Plan for Linked Component under North China Branch of Petro China......86


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Map 1 Construction location of the World Bank-funded Coalbed Methane Development and Utilization Project

CBM development

CBM liquefaction

Metering and pigging station and

waste water treatment plant

Shan-1 stationShan-2 station

Shan-3 station

Central Gas Treatment

Plant of NCBPC


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Map 2 Locations of Shanxi Coalbed Methane Development and Utilization Project

Objectives of Resettlement Plan & Definitions of Resettlement

Terms

The Resettlement Action Plan (RAP) is developed based on laws and regulations of P. R. China and Shanxi Province and World Bank Operational Policies OP 4.12 on involuntary resettlement. The objective of the RAP development is to “develop a resettlement action plan for the people affected by the project to guarantee they can benefit from the project, improve their living standards or at least restore their living standards after the project is completed.” Acquisition of land and other assets for the project will adversely affect the livelihood of persons who live, work or earn their living on the land that will be acquired for the project. PAPs are defined as those persons whose income or livelihoods will be adversely affected by land acquisition for the project. PAPs include the following categories:

(1) Persons who have a title, right, interest, in structures (houses, enterprises, shelters, or public buildings), land (including residential, agricultural, and grazing land) or any other asset acquired or possessed, in full or in part, permanently or temporarily;

(2) Persons who use the structures, land or assets described above; or persons whose business, occupation, work, place of residence or habitat adversely affected; or

(3) Persons whose standard of living is adversely affected as a consequence of land acquisition.

The definition of “project affected person”: a person who on account of the project, would have his or her: (i) standards of living adversely affected; or (ii) right, title or interest in any house, or interest in or right to use/access any land (including premises, agricultural and grazing land) or right in any other fixed or movable asset, acquired or possessed, temporarily or permanently; or (iii) business, occupation, work or place of residence or life habit adversely affected, temporarily or permanently. “Project affected person” can be individual, enterprise, public organization or any other legal person. The definition of project affected person has no limitation on their legal registration, permit to live or do businesses within the affected area. And there is no limitation on the compensation for their assets. Therefore, affected person includes: (1) All the project affected people without consideration to their legal interests and rights or

whether they are on site when their assets are acquired; (2) Person without living permit in a certain area.


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Therefore, all these affected people, without consideration to their assets, land or location, will be treated and recorded as project affected persons. All the project affected persons should be compensated to improve or at least restore their living standards and their lost assets should also be compensated at replacement cost. It is not allowed to reduce or discount compensation based on depreciation or other reasons. All the project affected persons should obtain interest and rights from the impacts on them. In addition to asset loss compensation, subsidy should also be given to assist rehabilitation. Project affected person who conducts business, land reclaiming and construction without asset, interest or legal residence permit should be treated in the same way as person who has the official legal assets, interest or permit. Such affected person is entitled to rehabilitate his or her life and have compensation for his or her asset loss. Definition of resettlement: Resettlement refers to life or work arrangement for the project affected persons to ensure they can benefit from the project, mainly including:

(1) Moving of place of residence; (2) Seeking new job opportunities for people whose jobs are affected; (3) Rehabilitation (or compensation) of affected land, working place, trees or infrastructure; (4) Rehabilitation or compensation for person whose living standards (life quality) are

adversely affected (such as toxic gas pollution) due to land acquisition and demolition; (5) Rehabilitation or compensation for affected person or public enterprise; and (6) Restoration of the adverse impacts on cultural or common assets.

Definition of “rehabilitation”: rehabilitation means to rehabilitate the project affected persons’ ability to continue their productive activities, or improve or at least maintain the living level before the project. The objective of the RAP is to provide a resettlement and rehabilitation action plan for the project affected people so their losses can be compensated, and their living standards can be improved or at least maintained at the level before the project is implemented. Meanwhile, the affected operation and production resources (including stores and enterprises), public assets, infrastructure and cultural assets will also be improved or at least rehabilitated to the level before the project. To achieve this objective, the resettlement plan takes rehabilitation measures so the project affected person can rehabilitate his/her income level and maintain his/her life.


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Executive Summary of the Resettlement Plan A. Background 1.The proposed Shanxi Coal bed Methane Development and Utilization Project includes three investment components: (1) gas exploration and production; (2) gas collection and transmission component; and (3) LNG component. The gas exploration and production component includes building 350 CBM vertical production wells and 57 km of access roads in Zhengzhuang block (see Map 1), which is located in Zhengzhuang Town, Qinshui County. The gas collection and transmission component includes building three gas collection stations, one metering station and one waste water treatment plant, upgrading 11.7 km station access roads and constructing 135 km of gas exploration pipeline and 15.6 km of gas collection pipelines in the same areas. The LNG component includes building one LNG plant in Dongshan Village, Duanshi Town of Qinshui County, which has four units with a total capacity of processing 1 million cubic meter CBM gas per day. The construction of these three components would involve certain amount of permanent land acquisition and temporary land occupation. No house demolition and relocation would be required. A resettlement action plan (RAP) has been prepared by the project sponsor - Shanxi Energy CBM Investment Holding Co. Ltd (SECBMIH) with assistance of Shanxi Academy of Social Science (SASS) to address these potential negative impacts. 2. The coal-bed methane collected by this project will be transmitted through the gas transmission pipeline between Zhengzhuang No.6 gas collection station and the Central Gas Treatment Station, where the gas will be pressurized and then transmitted to the LNG Plant. Both the pipeline and the Central Gas Treatment Station will be built by North China Branch of Petro China (NCBPC), which is directly linked to the Bank financed Project. Following the requirement of the World Bank, a separate resettlement plan has been prepared for these two linkage components and included in the Annex 2 of the RAP. B. Scope of land acquisition and resettlement 3. According to detailed impact survey, the proposed Project will affect 14 village groups in 8 administrative villages in Zhengzhuang Town and Duanshi Town in Qinshui County. A total of 44.7 ha of land areas will be permanently acquired, including 10.9 ha dry farmland, 32.2 ha as unused land and 1.6 ha as scrub land. The Temporarily occupied land of the project is 101.4 ha, including 24.9 ha dry farmland, 4.1 ha scrub and 72.4 ha unused land. The land acquisition and occupation will affect 333 households and 1131 people, including 107 households and 366 people affected by permanent land acquisition and 226 households and 765 people affected by temporary land occupation. In average, every affected people will lose 0.45 mu farmland, accounting for 14% of their existing farmland. All the affected land, trees and other assets will be compensated based on replacement cost. C. Resettlement Policy and Compensation Standards


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4. For people who will be inevitably affected by the project, the resettlement objective is to restore or improve their income to their original levels in accordance to national laws and regulations, as well as the resettlement policy of the World Bank. The project owner will ensure that any person who losses land, other assets or income source will be assisted to fully recover their income and living levels. According to national laws and Shanxi implementation regulations, Qinshui County Land Resource Bureau has stipulated compensation rates for the Project. For permanent land acquisition, the compensation will be set at 27 times of annual average output value (AAOV) in the past three years for farmland acquisition and 5-7 times of AAOV for non-farmland acquisition. For temporary land occupation, the compensation standards are set at 1,400 Yuan/mu for dry farmland, 2,800 Yuan/mu for vegetable plot, 700 Yuan/mu for unused land and 900 Yuan/mu for scrub land each year. In addition, the temporarily occupied land will be restored by the project owner; otherwise, the reclaiming deposit, which is set at Y3,000 per mu for farmland , Y1,500 per mu for non farmland and Y 2,000 per mu for scrub land will be used to rehabilitate the land into original conditions. D. Resettlement and Rehabilitation 5. As for the people inevitably affected by the project, the resettlement strategy is to provide replacement land by land readjustment and compensate lost assets according to replacement value so that the income and livelihood of affected people could be restored and improved. Among all affected people, 107 households and 366 people will permanently loss a small portion of their farmland. Due to limited land acquisition and relatively large of land holding among affected people (3.2 mu per person), the actual impacts will be small. After extensive consultation with affected villages, the land loss impacts could be mitigated by providing replacement farmland within the affected villages either from village reserved farmland or through land readjustment within affected village groups. After resettlement, all affected people will be able maintain their previous land holding and can continue their farming activities. The land readjustment will be supplemented by cash compensation provided by the project, which will be paid directly to affected villages and individuals prior to land acquisition and leveling. For temporary land occupation, adequate compensations will be paid to affected people for their lost yields and the project owner will be responsible to restore the land areas into their original condition after construction. E. Public Information, Consultation and Participation

6.In the process of identifying resettlement impacts, formulating compensation policies, and preparing the resettlement action plan, extensive consultation and community participation have been organized by SECBMIH and SASS in the project affected areas. Survey results show that about 98% of local residents support this project; and 73% believe that the project will benefit them. For those affected by land losses, based on consultation among affected villages, adequate compensation will be paid and detailed economic rehabilitation measures will be adopted, which include reallocating village reserve land to affected individuals and use compensation to developing other income generation activities.


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7.More efforts will be made during the resettlement implementation to encourage further participation by the resettlers, such as increase fairness in land readjustment, and improve transparency in delivering and using compensation funds. To ensure that all compensations will be used effectively, they will be delivered directly to affected villages and the use of such funds will be approved by all villagers and monitored by the township governments. 8.Following both Chinese law and the World Bank policy, the project resettlement office had made serious efforts to disclose the content of RAP, and inform the affected people about resettlement impacts, compensation policies, and rehabilitation options. More concrete disclosure will be made prior to implementation of land acquisition, which included distributing resettlement information booklet to affected people, and making RAP available in the concerned township and villages. 9.To effectively address any complains by affected persons, a grievance procedure will be set up by the project. If one person does not satisfy the compensation amount or rehabilitation measure, he could first voice his complain to the village or concerned township, which should document such complain and resolve the matter within two weeks. If the affected person is not satisfied with the decision, he could bring his case to project resettlement office, which will provide a formal resolution within two weeks. If the affected person does not agree with the resolution, he could bring his case to county resettlement office in Qinshui County Land Resources Bureau, which will make a decision within ten days. If DP still does not satisfy the resolution from the county, he could go to the civil court to appeal. The affected people will be informed about these grievance procedures by meetings, information booklet and public notice. F. Vulnerable Population 10.Detailed survey indicates that among all the affected people, there are no ethnic minorities. As for the economically vulnerable people, including poor households (per capita annual income lower than 1,000 Yuan), households with disabled people, households with only older people, and households headed by women, the project will provide extra economic supports. According to the survey, there are 21 vulnerable persons affected by the project land acquisition, accounting for 5.7% of the total affected people. According to the RAP these vulnerable persons will be given extra assistance, which is preliminarily set at Y3,000 per person. The specific amounts will be decided according to their actual situation and their needs. In order to provide such support, SECBMIH has set aside 0.2% of land acquisition compensation as the assistance fund for vulnerable group, which will be used to provide financial supports for the vulnerable groups in the resettlement implementation. G. Institutional Arrangement

11.The resettlement implementation responsibilities belong to the project sponsor and local governments. In order to ensure successful resettlement implementation, a Resettlement Leading Group (RLG) will be established in Qinshui County. The officials from Qinshui


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County Government will be the members of RIG. Its main responsibility is to strengthen the leadership of the project, formulate resettlement policies, smooth the resettlement implementation, and coordinate among departments. A resettlement office has been set up within SECBMIH, which are responsible for coordinating overall resettlement planning and implementation activities. Their responsibilities includes (1) entrusting consulting team to conduct inventory and social economic surveys, and prepare RAP; (2) signing compensation agreement with and allocating compensation funds to concerned county government; and (3) coordinating and supervising resettlement implementation. 12.They will work closely with Qinshui County resettlement office located in Qinshui County Land Resources Bureaus in conducting site survey, keeping records, organizing consultation, developing and implementing RAP, managing and allocating the resettlement funds, training resettlement staff, signing compensation agreements with relevant township and villages, and being a main channel of grievance for the resettlers. In the affected townships, resettlement working teams will be established, which will work closely with the county resettlement offices for carrying out resettlement implementation for the project. Monitoring and Evaluation

13. In order to ensure that resettlement will be implemented smoothly and the livelihood of the resettlers will be restored, both internal monitoring and external monitoring and evaluation will be carried out during the resettlement implementation. For the Project, the internal monitoring will be in responsible by resettlement office of SECBMIH. The concerned county land resources bureau and township resettlement working teams will participate in the internal monitoring efforts. The main purpose of internal monitoring is to monitor the implementation of resettlement program to ensure that agreed RAP will be fully implemented, and the interests of resettlers are protected. The monitoring will cover all aspects of resettlement operation, such as delivery of compensation fund, land readjustment among affected villages, and development of various income activities in accordance to the RAP. Such information will be incorporated into project progress report to be submitted by the project owner to the World Bank.

14. In terms of external resettlement monitoring and evaluation, a qualified independent agency will by hired by SECBMIH to regularly monitor the resettlement implementation for both proposed project and linkage project and to evaluate whether the main objective of resettlement program is achieved. The process of independent monitoring and evaluation will provide assessment on whether the livelihood of resettlers have been restored, which will become early warning system for the project management, and channels for voicing comments and opinions from affected people.

15. The method of monitoring and evaluation will combine sample survey and rapid appraisal in order to monitor the implementation progress and evaluation of income changes among affected people. To achieve these purposes, the main indicators will include: (1) physical progress of resettlement program; (2) quality of resettlement implementation; (3)


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delivery of resettlement funds; (4) economic conditions of the resettlers before and after resettlement; (5) environmental conditions before and after resettlement; (6) employment conditions before and after resettlement; and (7) resettlers’ satisfaction.

16. The external resettlement monitoring and evaluation survey will be carried out in the end of every year once the resettlement implementation begins; and will submit a resettlement monitoring and evaluation report to SECBMIH as well as the World Bank by the end of each year. The resettlement and relocation work will begin in 2008 and the land acquisition will be completed in 2010. The resettlement monitoring and evaluation work will proceed at least 3 times between 2008 and 2011. H. Costs and Implementation Plan 17. The costs to of land acquisition are included in the overall budget of the Project. The total costs of land acquisition and resettlement are estimated to be Y83.79 million, of which Y73.8 million for permanent land acquisition and Y4.21 million for temporary land occupation. Among total cost, the compensations paid to the affected farmers would be Y11.84 million. The land acquisition and resettlement will be implemented in two years. The cost estimate for land acquisition includes provision of contingency set at 5% of total amount of compensation budget.

18. Following the compensation standards and policies set up in the RAPs, the project resettlement office will sign land acquisition agreements with Qinshui County Land Resources Bureau, which will sign compensation agreements with concerned townships and villages for the both permanent land acquisition and temporary land occupation. The delivery of land compensation funds will go from the county land resources bureau, through concerned township to affected villages. The attachments of land will be delivered from villages to affected individuals. To ensure that resettlement funds will be used effectively and exclusively, the different levels of governments will carry out auditing on the use of resettlement funds each year.

19. In terms of resettlement implementation schedule, it will be closely related with construction progress. Land acquisition for both of the gas exploration and transmission components will be completed one month before the start of the civil work construction. The proposed schedule is expected to ensure that all affected persons, prior to their actual losses: i) will have been adequately consulted about the Project, its impacts and compensation entitlements; ii) will have received compensations in a timely manner; and iii) have been provided with means to establishing livelihood.


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1. Overview

1.1 Project background

Coalbed methane (CBM) is usually called “gas”. It is a kind of irregular natural gas existing within the coalbed. Its major component is methane. Coalbed methane is a kind of greenhouse gas but also a kind of new clean energy. It has high heat output and no pollution. As fuel, it can be used in power generation, industrial production and people’s daily life. Development and use of CBM have positive impact on coal mine safety, clean energy development, air pollution mitigation and the development of relevant industries.

1.2 Project overview

The proposed World Bank-funded Coalbed Methane Development Project is located in Zhengzhuang Town and Duanshi Town in Qinshui County, Jincheng City of Shanxi Province. The engineering works of the project have three components: (1) CBM exploration and production, (2) CBM collection and transmission component, and (3) LNG Plant component. CBM exploration, collection and transmission component will provide raw material gas to the LNG Plant. In addition, two components under North China Branch of Petro China will be directly related to the Project, which include CBM Central Gas Treatment Plant in Duanshi Town, and 20 km-long gas collection trunk pipeline between Zheng-6 gas collection station (in Zhengzhuang Town) and the Central Gas Treatment Plant. A. CBM Exploration and Production Component CBM exploration and production component is located within Zhenghuang CBM Block of 49.14 km2. It covers the six administrative villages (Xiliang, Shishi, Yugou, Kongbi, Langbi and Hetou) in Zhengzhuang Town. CBM exploration component includes developing 350 gas production wells within Zhengzhuang Block, with a capacity of 250 million cubic meter per year. Within the 350 wells, there are 27 wells in Xiliang Village, 60 wells in Shishi Village, 48 wells in Yugou, 91 wells in Kongbi, 104 wells in Langbi and 20 wells in Hetou. Along with well development, a total of 57 km well access roads will be built. B. CBM Collection and Transmission Component Gas collection and transmission component includes constructing three gas collection stations, one metering station, and one wastewater treatment plant as welll as . They are all located in Zhengzhuang Town. Meanwhile, 135 km-long gas exploration pipeline and 15.6 km-long gas collection pipeline will be installed, and 11.7 km-long station access road will be upgraded. C. LNG Plant Component


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LNG Plant component includes constructing a LNG Plant with four sets of liquefaction equipments in Dongshan Village of Duanshi Town and 1.43 km-long gas transmission pipeline from Central Gas Treatment Plant of NCBPC to LNG Plant.

D. Projects directly and indirectly related to the project CBM recovered in Zhengzhuang Block in this project will be collected into three gas collection stations. After it is transmitted into the metering and pigging station, gas transmission pipeline installed by NCBPC will be used to transmit CBM into the NCBPC Central Gas Treatment Plant located in Jinfeng Village of Duanshi Town. After certain treatment, CBM will be transmitted into LNG Plant through gas transmission pipeline installed in this project. NCBPC Central Gas Treatment Plant and the 20 km-long gas transmission pipeline from the Central Gas Treatment Plant to the metering and pigging station of this project are integral part of the same production chain of this project. Therefore, they are linkage components to this project. For NCBPC components, following national laws, Shanxi regulations, and Qinshui County decrees, the adopted compensation rates for permanent land acquisition and temporary occupation are the same as this Project. According to the Bank requirements, a separate resettlement plan has been prepared for NCBPC components and included in Annex Two. See Map 1.2.1 for the relationship between the two components of this project and relationship between this project and related NCBPC projects.

Map 1.2.1 Illustration on the relationship between the two components of this project and relationship between this project and related NCBPC projects

1.3 Social and economic benefits of the project

World Bank-funded Coalbed Methane Development and Utilization Project will boost the use the new energy, protect the environment and reduce coal mine safety risks. As for the project area, the economic income will be boosted, non-agricultural job opportunities will be increased, income level of the local residents will be improved, local road transport will be improved, and regional economic development will be boosted. As for the cities and citizens using product produced in this project, the project will improve the urban air quality and improve people’s health, and boost people’s life quality. This project will also boost the city image, improve local investment environment and achieve sustainable development.


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Therefore, the project will benefit both the project area and the end market of its product. This project will deliver sound economic and social benefits. Generally speaking, World Bank-funded Coalbed Methane Development and Utilization Project will deliver considerable social and economic benefits for the project area and the end market of its product. Therefore, this project has significant meaning.

1.4 Planned schedule

The Project will begin implementation in 2008 with all three components and planned completion by 2010. The detail implementation schedule for three components is presented in Table 1.4-1. Table 1.4-1 Construction schedule of Shanxi Coalbed Methane Development and Utilization Project Year CBM

well Gas collection station

Metering and pigging station

Water treatment station

Station access road (km)

Well access road (km)

Gas collection pipeline (km)

Gas recovery pipeline (km)

LNG set

2008 21 1 1 3.4 15.6 8.1 1 2009 150 2 8.3 24.4 57.9 3 2010 179 1 3.4 29.2 69.0

350 3 1 1 11.7 57.0 15.6 135.0

The project land acquisition compensation will be completed one month before the project begins. The resettlement plan implementation will begin in April 2008. Land acquisition procedures will be obtained, and compensation fee will be paid and resettlement work will be conducted.

1.5 Measures to mitigate project impacts

In project feasibility study stage and resettlement plan preparation stage, the design institute and the project owner have taken all the effective measures to minimize adverse impacts on the local society and economy. The feasibility study organizations provided two or three alternative solutions for all the engineering works in the project. In comparison of the alternative solutions, one of the key criteria is to minimize the impacts on the local community, which include minimizing impacts on land acquisition particularly in terms of farmland acquisition and house demolition. In selecting gas well sites, since a lot of wells will be drilled, a well distance of 300 meters will be maintained. When it is economically and technically viable, the original well sites that occupy farmland have been moved to barren land in order to reduce negative impacts to local farmers. In selecting access roads, efforts were made to use existing local roads in order to reduce farmland acquisition and demolition. As a result, the total length of station roads was reduced


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from originally planned 30.1 km in the pre-feasibility study to 11.7 km. Instead of using existing village roads as part of the station access road, the revised design is to use existing village roads for all the station access roads. As a result, the land acquisition was reduced by over 30 mu. The route of gas recovery and gas collection pipeline has also been properly selected to follow village road as much as possible and avoid occupation of farmland. As for the location of station sites, after repeated comparison, Shan-1 and Shan-2 Gas collection stations, the metering and pigging station and the waste water treatment station are all located at barren land without any farmland occupation. Shan-3 gas collection station only needs to occupy 1.2 mu of farmland. There were two alternatives for the production headquarter; and both solutions are to build the center in Zhengzhuang Village, which will acquire 9.8 mu and 12 mu farmland respectively. After analysis and comparison, the project owner finally gave up both solutions and decided to purchase existing buildings. In this way, land acquisition can be reduced by 10 mu. LNG Plant site solution has also been changed for three times. According to the first scheme, the plant site is at Jinfeng Village in Duanshi Town, with 172.8 mu farmland acquisition. According to the second scheme, the plant site is at Yingetuo Village in Hudi Town, with 98 mu farmland acquisition. The final scheme is to put the plant in Dongshan Village in Duanshi Town with 49.4 mu farmland acquisition. No house will be demolished. The final scheme can reduce farmland occupation by 123.4 mu compared with the first scheme, and reduce farmland occupation by 38.6 mu compared with the second scheme.

1.6 Project Design and Approval

The preparation work of Shanxi CBM development and utilization demonstration project began in the late 2005. In March 2006, NDRC and Ministry of Finance listed Shanxi CBM industry development project as a candidate project to receive World Bank fund. In December 8, 2006, the World Bank completed identification mission of the project. In August 2007, “Project proposal on World Bank-funded Coalbed Methane Development and Utilization Project” was reviewed and approved by Shanxi Development and Reform Committee. In October 2007, the Project feasibility study report was completed and approved by Shanxi Development and Reform Commission. The construction of LNG plant is expected to begin in April 2008. At project planning, proposal and feasibility study stages, the project organization conducted communication and consultation with all the related government agencies and villages within the scope of proposed project, and achieved preliminary agreement on land acquisition issues with them. The land pre-appraisal for the Project has already begun and expected to complete by March 2008. The land acquisition work for LNG plant will begin in April 2008, and land acquisition for related gas exploration, collection and transmission components will be completed by June 2009.

1.7 Preparation of resettlement plan

A. Project Impact Survey


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In September and November 2007, under the comprehensive arrangement and coordination of the Qinshui County People’s Government, the project survey team made of staff from SECBMIH and SASS carried out detail impact survey for 20 days each time. They were supported by key officials from Duanshi Town and Zhengzhuang Town, as well as affected village committees and the affected people. Based on the different types of project impacts, project impact survey includes inventory of affected land areas, sporadic trees and people affected by land acquisition. After completion of the impact investigation in each village, the physical indicators were confirmed by village committee officials and affected people one by one and mistaken and missed items were corrected. All the investigation results have been agreed by the affected people, village committees and town and county government agencies. B. Socioeconomic Survey In order to analyze the impacts of the project and develop viable and practical resettlement action plan, under the centralized coordination of county government office, the survey team of SECBMIH and SASS conducted detailed social and economic survey on the project affected areas, which combined the collection of all the existing social economic data with sample household survey. (1) The existing social economic data were collected from various development reports and

statistic yearbooks issued by Qinshui County Statistic Bureau, Agricultural Bureau and other government agencies. They could be used to present basic economic and social situation of local communities.

(2) Sample household survey was carried out among affected people, which was designed to obtain basic social economic profile of residents in the project affected area, and was also used as basis to measure potential impacts of land acquisition by the Project.

Data collection, sample survey and impact survey were conducted at the same time. Based on the obtained data through investigation, the local economic and social situation and the potential impact on the livelihood of the affected people were analyzed. C. Resettlement planning The project resettlement planning follows the principle of “development-oriented resettlement”. Resettlement and regional economic development should be combined so the affected people can obtain proper compensation and resettlement after land acquisition and they can restore or exceed their existing living standards. Under the leadership of Qinshui County People’s Government, the resettlement planning was carried out by the project owner and SASS, which include surveying of remaining land resources after land acquisition, consulting with affected villages, and developing concrete economic rehabilitation measures.


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In order to enhance leadership and coordination of the project resettlement work, Qinshui County set up a resettlement Leading Group.

1.8 Development of resettlement action plan

Since September 2007, the project owner with the assistance of SASS team has actively involved in RAP preparation. In the process, resettlement management organizations have been set up; project impact scope has been identified; and the work program of RAP preparation has been developed. Based on such work plan, project impact survey, social and economic survey, compensation policy study, resettlement plan development and resettlement cost estimation have bee completed. As the result, the RAP for the proposed Project was finally developed.

1.9 References and objectives of this RAP

A. Major policy references (1) World Bank Operational Policies OP/BP 4.12 – Involuntary Resettlement (2) Land administration law of P. R. China (3) Implementation methods for ‘Land administration law of P. R. China’ in Shanxi Province (4) Interim regulations on farmland occupation tax of P. R. China (5) Temporary methods for the collection and use of forest acquisition and occupation

compensation fee in Shanxi Province (6) Allocation methods of land acquisition compensation for the acquisition and occupation of

farmers’ collectively-owned land in Shanxi Province (7) Relevant regulations in Qinshui County.

B. Policy objectives (1) Engineering, technical and economic measures should be taken to minimize or avoid land

acquisition and displacement of people. When the land acquisition is inevitable, effective measures should be taken to minimize land acquisition’s impacts on the production and life of the local residents.

(2) During project preparation stage, social and economic investigation should be conducted and resettlement plan should be developed accordingly.

(3) Based on the impact physical indicators and compensation standards, the objective is to improve affected people’s production and living standards or at least restore to the existing level.

(4) Development-oriented resettlement should be encouraged. The economic rehabilitation of the affected people should be based on land and job opportunities should be created in well developed local industries, such as transportation sector, service industry and other secondary and tertiary industries.

(5) Affected people and residents in the affected area should be encouraged to participate in the resettlement plan.

(6) The affected people and all the residents in the affected area should benefit from the project.


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2. Social and economic overview of the project affected

areas

2.1 Project County - Qinshui County

Qinshui County has the jurisdiction over seven townships and seven towns, 248 administrative villages and six residential committees. By the end of 2006, the permanent population was 216,000 people, including 154,400 agricultural population, accounting for 71.5%. The non-agricultural population is 616,000, accounting for 28.5%. The natural population growth rate is 4.65‰ and the urbanization rate is 28.52%. The actual rural labor force is 72,200 people, accounting for 46.8% of the total agricultural population. There are 26,400 people working in agriculture, forestry, animal-raising and fishery, accounting for 36.57% in the total rural labor force. In 2006, GDP of the county was 4.69 billion Yuan (based on the price in 2006), up by 5.8%, including 174.51 million Yuan from the primary industry, up by 10.4% compared with the previous year; 3.6 billion Yuan from the secondary industry, up by 4.2%; 911.42 million Yuan from the tertiary industry, up by 11.5%. Based on permanent population, the per capita GNP was 21,745 Yuan and the total production value of agriculture, forestry, animal raising and fishery industry was 338.51 million Yuan, up by 8.9% year on year. By the end of 2006, the per capita disposable income of the county urban population was 8,156 Yuan, up by 16.16% compared with the previous year. The farmer’s per capita net income was 3,152 Yuan, up by 10.09% compared with the previous year. The per capita consumption expenses of rural resident are 2,825 Yuan, up by 8.24% compared with the previous year.

In 2006, the poverty line in Shanxi Province is annual income of 928 Yuan per capita. There is no poverty village in Qinshui County with an annual per capita income lower than 928 Yuan. Nevertheless, there are three poverty villages with an annual per capita income lower than 1,500 and 33 low-income villages with an annual per capita income lower than 2,000 Yuan. In Duanshi Town, there are 4 low-income villages; and in Zhengzhuang Town, there are no poverty villages and low-income villages.

In 2006, the county had 431,685 mu grain growth area, and the per capita grain quantity is 533 kilogram. The per capita farmland of the agricultural population is 2.80 mu. Qinshui County is endowed with rich mineral resources, particularly coal. Its coal reserve ranks No. 1 in Jincheng City. Following recent decades development, it has changed from a traditional pure agricultural county into an industrialized economy with coal playing a dominating role. Qinshui County’s industries include coal mining, iron making, power generation, machinery manufacturing, fertilizer, cement, silk and paper making. Table 2.3-1 provides basic social and economic data of Qinshui County and Zhengzhuang and Duanshi Towns.


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Table 2.1-1 Basic social and economic data for Project County and Towns (2006)

Item Unit Qinshui County Zhengzhuang

Town Duanshi Town

I. Population

1. Total household No. 10,000 7.15 0.54 0.98

2. Total population 10,000 21.60 1.72 2.53

2.1 Agricultural population 10,000 15.44 1.46 2.00

2.2 Natural population growth rate ‰ 4.65 -0.07 1.03

3. Actual labor forces in the rural area

10,000 7.22 0.81 0.92

II. Geographic area km2 2655 382.7 257

III. Gross domestic production 100 million

Yuan 46.87 0.92 2.07

1. % of primary industry 100 million

Yuan 1.74/3.7 0.69/75 0.43/21

2. % of secondary industry 100 million

Yuan 36 /76.8 0.17/18.5 1.18/57

3. % of tertiary industry 100 million

Yuan 9.1/19.4 0.06/6.5 0.46/22.1

IV. Per capita GDP Yuan 21700 5339 10192

V. Agricultural production conditions

1. Farmland area 10,000 mu 43.2 5 3.93

2. Grain production volume 10,000 ton 11.51 1.72 1.45

3. Per capital grain ownership kilogram 533 1000 716

4. Per capita farmland area of agricultural population

Mu 2.80 3.43 2.2

VI. Per capita net income of farmers Yuan 3152 3120 3419

2.2 Project Towns: Duanshi and Zhengzhuang

Duanshi Town is located in the southeast of Qinshui County. It borders Zhengzhuang Town in the west, Hudi Township in the east, Guxian Township in the north, and Jiafeng Town in the south. Duanshi Town’s total area is 257 square kilometers. By the end of 2006, the town had 26 villages with 9,755 households and a total population of 25,300. Agricultural population accounts for 78.9% of the total population and non-agricultural population accounts for 21.1%. The natural population growth rate is 1.03‰. The total labor force is 9,166 people, accounting for 36% of the total population of the town. 6,567 people work in agriculture, accounting for 71.64% of the total labor force. By the end of 2006, the town had 39,310 mu farmland and the per capita farmland was 1.9 mu. The total grain production volume is 14,519 tons and the per capita production volume is 716 kilograms. Major agricultural products include wheat, maze, millet, grain sorghum, bean, cotton, oil plant, fruit and vegetables. Duanshi Town’s major industry and commerce include construction material, machinery-processing, transportation, trade and food and beverage. The town has 1,143 village and


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township enterprises. The total rural production value was 206.69 million Yuan, among which, the industry and service sector production value was 163.48 million Yuan or 79%. In 2006, the total economic income of the town was 153.22 million Yuan, with 27.43% from agriculture, 17.27% from industry, 20.51% from transport; and 20.51% from commerce and trade. The per capita net income was 3,419 Yuan. Zhengzhuang Town is located in the middle of Qinshui. It borders Duanshi Town in the east, Longgang Town in the west, Suzhuang Township in the north, and Qinchi Town, Yangcheng County in the south. The town has a total area of 382.7 square kilometers. By the end of 2006, the town had 26 villages, 5,454 households and 17,200 people. Agricultural population accounts for 84.88% of the total population and the non-agricultural population accounts for 15.12%. In 2006, the total labor force in this town was 8,118 people, accounting for 47.2% of the total population of the town, among whom, 6,183 people worked in agricultural sector, accounting for 76.16% of the total labor force. By the end of 2006, the total farmland in the town was 52,153 mu and the per capita farmland was 3 mu. The grain production volume was 17,218 tons and the per capita production volume was 1,000 kilograms. Its major agricultural produce includes wheat, maze, millet, grain sorghum, potato, cotton, oil plant and fruit. Major industry and commerce in Zhengzhuang include grain processing, agricultural machinery repair, construction material, trade and food and beverage industry. Within the town, there are 244 township and village enterprises. The total rural production value was 40.78 million Yuan and the business income was 38.81 million Yuan. In 2006, the total economic income of the town was 82.86 million Yuan, with 51.5% from agriculture; 16.6% from animal husbandry; and 8.9% from transport. The per capita net income for rural population was 3,120 Yuan.

2.3 Basic Condition of Project Affected Villages

World Bank-funded Coalbed Methane Development and Utilization Project’s impact involve two administrative villages in Duanshi Town (Dongshan and Jinfeng) and six administrative villages in Zhengzhuang Town (Xiliang, Shishi, Yugou, Kongbi, Langtou, and Hetou). In 2006, there were 1,825 households and 6,144 persons in these 8 villages. There were 2,894 rural labors in these 8 villages, accounting for 75.8% of total rural population. In 2006, the total rural economic incomes from these 8 villages amounted to 28.89 million yuan. Per capita net income was 3,122 Yuan, ranging from 2,300 Yuan in Xiliang to 3,532 Yuan in Dongshan. In terms of land holdings, there are 18,235 mu of farmland in these 8 villages, averaging 3.2 mu per capita, ranging from 1.8 mu in Dongshan Village to 5.6 mu in Xiliang Village. More detailed social economic data from project affected villages are listed in Table 2.3-1.

Table 2.3-1 Basic social and economic data on the villages affected by World Bank-funded Coalbed Methane Development andUtilization ProjectVillage committee Xiliang Shishi Yugou Kongbi Langbi Hetou Dongshan Jinfeng

I. Population1. Total households 88 185 130 298 349 354 156 2652. Total population 320 634 410 939 1195 1230 560 856II. Actual labor forcesof the village110 327 210 480 529 495 318 4251. Agriculture 90 283 155 392 449 210 265 3502. Industry 8 7 29 26 130 7 43. Construction 2 7 15 15 8 15 16 44. Transportation 4 11 18 20 19 50 12 205. Service industry 6 14 12 21 23 90 15 326. Other non-agricultural industry 1 12 3 3 4 76 3 15III. Farmland area (mu) 1800 2200 800 3270 3908 3500 998 1759Including: irrigated land 600 800 50 800 800 500 400 198IV. Rural areaeconomic income(in

10,000 Yuan)117 305 170 445 568 612 298 374

1. Crop production 80 261 112 313 370 450 170 2562. Forest 20 11 10 45 98 3 7 162. Animal raising 5 15 18 30 60 15 40 503. Industry 6 4 15 15 65 15 34. Construction 1 3 8 10 4 8 15 35. Transportation 3 6 9 9 12 25 30 196. Service industry 2 7 7 20 8 40 20 247. Others 2 2 2 1 3 1 3V. Per capitanet incomeof farmer

(Yuan)2300 3150 2910 2980 3215 3300 3523 3020


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2.4 Basic information on the work and life of affected households

2.4.1 Sample selection In order to comprehensively understand the project’s impacts on households, the project RAP compilation group conducted a sample survey within the project affected villages. A total of 45 households affected by land occupation and acquisition were randomly selected as sample households, accounting for 18.1% of the total affected households. The selected samples cover all the villages affected by the permanent land acquisition of the project. The samples are representative and typical. The sample survey can be used as the reference for project impact analysis. See Table 2.4-1 for the specific allocation of sample households.

Table 2.4-1 Allocation of sample affected households affected by the World Bank-funded Coalbed Methane Development and Utilization Project

Village (Town) Households

affected by land acquisition

Sample household

No. Proportion (%)

Xiliang Village (Zhengzhuang) 8 5 62.5 Shishi Village (Zhengzhuang) 39 6 15.4 Yugou Village (Zhengzhuang) 24 4 16.7 Kongbi Village (Zhengzhuang) 14 5 35.7 Langbi Village (Zhengzhuang) 108 12 11.1 Hetou Village (Zhengzhuang) 26 7 26.9 Dongshan Village (Duanshi) 26 6 23.1

Total 248 45 18.1

2.4.2 Investigation results and result analysis The project RAP compilation group conducted detailed investigation on the working and living situation of 45 sample households. See Table 2.4.2-1 for the results. (1) Family structure and employment The 45 sample households have 172 people in total. Every household has 3.82 people in average. The labor forces in the sample households total 79 people. Every household has 1.8 labor forces in average. The average dependents number is 1.2 people. As for employment structure analysis, most farmers engage in agricultural activities, accounting for 76%. Labor force working in non-agricultural industry accounts for 24% of the total labor force. Within the non-agricultural employment, 37% work for private (township and town) enterprises and 58% work in urban area. These are the major household income sources of local farmers.

(2) Agricultural production According to the investigation, there are basically no enterprises in the project affected area. Farmers mainly work in crop production and forestry. Most farmland grows crops with high drought tolerance, including grain sorghum, maze, wheat and miscellaneous grain. Most crops have only one harvest in a year. Meanwhile, some households also plant fruit trees and mulberry trees. According to the investigation, the sample households have 550.4 mu


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contracted farmland (including garden plot) and the per capita farmland (garden plot) is 3.2 mu. In 2006, the annual grain production volume was 143,000 kilogram and per capita grain volume was 830 kg. Because the existing production facilities are not well developed, and the irrigation conditions are not good, the current rural resource development and utilization level is not high. There is still room for further improvement of the farmland productivity. Table 2.4-2 Basic information on the sample households in Project Affected Areas

Investigation indicator Unit Quantity Investigation indicator Unit Quantity

I. No. of people and labor forces in HH (5) Tractor /tricycle 3

1. Total No. of people in the householdsPerson 172 V. Annual total income Yuan 682540

Including: women Person 76 1. Household income Yuan 637740

2. Total No. of labor forces in HH Person 79 (1) Fixed salary, allowance Yuan 118000

Including: women Person 30 (2) Temporary work income Yuan 15500

3. Average dependents per labor force Person 1.17 (3) Income of rural migrant workers

Yuan 143000

II. Agricultural production (4) Business operation income

Yuan 9800

1. Contracted farmland (garden plot) mu 550.4 (5) Agricultural produce income

Yuan 301870

2. Per capital farmland (garden plot) mu/Person3.57 (6) Forest product income Yuan 26000

3. Gross income Yuan 378730 (7) Animal product income Yuan 13700

4. Net income Yuan 301090 (8) By-product income Yuan 7300

5. Net income per capita Yuan/Per.1750 (9) Government Subsidies Yuan 2570

III. Persons working in non-farm sectorsPerson 19 2. Other income Yuan 44800

% in the total labor forces % 24.1 VI Annual total expenses Yuan 533440

Including: (1) Government employees Person 1 1. Agricultural expense Yuan 89290

(2) Township village enterprise Person 7 (1) Seed purchase Yuan 15020

(3) Transportation workers Person 0 (2) Fertilizer and pesticide Yuan 49210

(4) Food and beverage sector Person 0 (3) Farmland irrigation Yuan 3830

(5) Other non-farm Person (4) Agricultural machine Yuan 17100

(6) Rural migrant workers Person 11 (5) Others Yuan 4130

IV. Durable consumer goods of HH 2. Consumption expense Yuan 433150

1. Home electric appliance (1) Food Yuan 106800

(1) TV set Set 57 (2) Energy Yuan 32950

(2) DVD\VCD Set 5 (3) Housing Yuan 3500

(3) Washing machine Set 23 (4) Clothing Yuan 61700

(4) Refrigerator Set 5 (5) Transport Yuan 17500

(5) Electric fan Set 20 (6) Communication Yuan 25920

(6) Camera Set 3 (7) Education Yuan 58100

(7) Water heater Set 2 (8) entertainment activities Yuan 3000

(8) Microwaver Set 1 (9) Healthcare Yuan 39360

2. Transport and communication devices (10) Necessity goods Yuan 36000

(1) Mobile phone 29 (11) Service consumption Yuan 5920

(2) Fixed telephone 36 (12) Money gifts Yuan 42400

(3) Motorcycle 25 3. Other expenses Yuan 11000

(4) Private car 1 VII. Per capita net income Yuan 3449


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(3) Living environment and housing conditions Some villages (such as Dongshan Village in Duanshi Town and Hetou Village in Zhengzhuang Town) affected by the project are near the highways, with sound transport conditions. However, most project affected villages have poor transport conditions. Though there are shuttle buses to county seat, the road surface conditions are poor. According to the survey, 60% of the 45 sample households have brick-wood houses or earth-wood houses. Our observation of the households indicates that most of the houses were constructed in the 1990s. Most of them are simple and primitive. With rapid regional economic development and the development of new rural areas, some villages (such as Dongshan Village in Duanshi Town and Hetou Village in Zhengzhuang Town) are planning to develop new villages through new construction and renovation. The area affected by the project has completed rural power grid renovation. There is no difficulty in household power use. However, due to national power shortage, power use limitation practices are common in rural area. Most of the water used by people and animal is tap water, and water supply is basically guaranteed. In terms of residential fuel, since the local area has big coal production, the cost of coal as residential fuel is not high. In recent years, Qinshui County has popularized bio-gas and more and more rural residents are using bio-gas. In terms of household durables, the 45 households surveyed have 57 TV sets, 23 washing machines, and 20 electric fans. But very few of them have refrigerator, DVD/VCD or camera. As for transport and communication, they have 25 motorcycles, one private car, three tractors and agricultural tricycles, 36 fixed telephones and 29 mobile phones. These are the major transport and communication tools and devices of the local residents. (4) Household income structure According to our survey statistics on economic income of the 45 sample households, in 2006, the annual per capita income of the sample households was 3, 968 Yuan, including 1,755 Yuan per capital agricultural produce income, accounting for 44.2%; 273 Yuan per capita forest product, animal product and by-product income, accounting for 6.9%; 831 Yuan per capita rural migrant worker income, accounting for 20.9%; 686 Yuan per capita non-agricultural income, accounting for 17.3%; and 423 Yuan per capita other income, accounting for 10.7%. Therefore, the income of the residents in the affected area is mainly agricultural income, supplemented by income of rural migrant workers. (5) Household consumption structure According to our investigation on 45 sample households, in 2006, the annual per capita expense of the sample households was 3,101 Yuan, including 519 Yuan per capita agricultural production expense, accounting for 16.7%; 2,518 Yuan per capita daily life consumption, accounting for 81.2 %, and 63 Yuan per capita other expenses, accounting for 2.1%. Within the consumption expenses, the per capita food and beverage consumption expense was 587 Yuan, accounting for 24.7 %; per capita clothing expense was 358 Yuan, accounting for 14.2%; per capita transportation and telecommunication expense was 252 Yuan, accounting for 4%; per capita education and serious disease treatment expense was 567 Yuan, accounting for 22.5%. The household consumption structure indicates that the daily life consumption level of the residents in the project affected area is still low. People’s consumption is basically concentrated in basic consumption. (6) Per capita net income


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According to the analysis of the economic income and consumption expenses of the sample households, by the end of 2006, the per capita net income of sample households was 3,449 Yuan. The highest per capita net income among the sample households was 11,750 Yuan and the lowest income was 1,100 Yuan. See Table 2.4 -3 for the per capita net income of the sample households.

Table 2.4-3 Per capita net income distribution analysis of the sample households in 2006

Per capita net income Indicator Below 2000

Yuan 2000~3000 Yuan

3000~4500 Yuan

4500~6000 Yuan

6000~8000 YuanAbove 8000 Yuan

1. No. of sample households 11 13 9 5 4 3 2. % in the total households 24.44% 28.89% 20% 11.11% 8.89% 6.67%

3. Average household size 3.8 3.5 3.7 4.20 3.8 2.67 4. Average labors per household1.5 1.6 1.8 2 2.2 2 5. Averagedependents per labor 1.5 1.2 1.1 1.1 0.7 0.4 6. Average per capita income 1702 2285 3380 5083 6657 9938

2.4.3 Women’s position in the project affected area People working on project resettlement plan development have paid special attention to the women’s position in the affected area during the economic and social investigation. Four meetings of women were organized, including women at different age groups above 18 years old and with different education background. In addition, household interviews were conducted to understand women’s position in the family and their participation in social public affairs.

In general, women’s position in the family is increasing and men and women are basically equal. Women in the affected area play important roles in every aspect of the work and life of households. They hold high position in family. However, due to the less developed local economy and the influence of traditional custom, women’s social participation degree is low. Therefore, the villages may use part of the land compensation to invite technicians to provide women with suitable agricultural technology training in order to meet their desire for technology and improve women’s participation in public affairs.

3. Project impacts

3.1 Identification of land acquisition scope

The engineering works of the proposed Project include three components: (1) CBM exploration and production component, (2) CBM collection and transmission component, and (3) LNG Plant component. According to detailed impact survey, both permanent land acquisition and temporary land occupation will be involved for construction of these three components. The permanent land acquisition area of the Project refers the area to be occupied after project completion. The temporary land occupation area of the project refers to the land use areas during the construction phase of the Project.


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3.1.1 CBM exploration and production component The engineering works of this component include 350 CBM wells and 57 km-long well access road. The scope of the temporary land use includes total land use area for the construction of 350 CBM wells during the construction phase. The scope of permanent land acquisition includes the land use area of the 350 CBM wells during the operation phase, and the land occupation area of 57 km-long well access roads. 3.1.2 CBM collection and transmission component The CBM collection and transmission component includes construction of three gas collection stations, one metering and pigging station, one waste water treatment plant, upgrading of 11.7 km-long station access roads, and construction of 135 km-long gas recovery pipeline and 15.6 km-long gas collection branch pipeline. The scope of permanent land acquisition includes land use for construction of three gas collection stations, one metering and pigging station, and one waste water treatment plant. The temporary land occupation includes the total land use area during the installation of 135 km-long gas recovery pipeline and 15.6 km-long gas collection branch pipeline. No land acquisition is required for upgrading station access roads of 11.7 km, since they are existing village roads. 3.1.3 LNG Plant Component The engineering works of this component include one LNG Plant and 1.43 km-long gas transmission pipeline. The scope of permanent land acquisition: land occupation area of LNG Plant including parking area and access roads. The scope of the temporary land use: the land use area for the installation of 1.43 km-long gas transmission pipeline.

3.2 Method of Impact Survey

To identify all the physical indicators about the impacts of the project, under the assistance of Qinshui County Government Office, County Development and Reform Bureau, County Land Resources Bureau and County Forestry Bureau, with the coordination of the related Vice Town Chiefs of Zhengzhuang Town and Duanshi Town, the project investigation working groups conducted comprehensive investigation on the physical indicators of project impacts. The investigation contents include the permanent land acquisition and temporary land occupation situation, people affected by permanent land acquisition and temporary land occupation, and mulberry saplings, miscellaneous trees and other sporadic trees. The specific investigation methods are as follows: Investigation of land acquisition and temporary land occupation: Built on the specific land data provided by land resource authorities and forest map provided by forestry authorities, after on-site investigation, areas of land with different ownership and categories are measured and investigated based on the existing land use conditions.


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Investigation on the affected people: the affected people are divided into two categories: people affected by permanent land acquisition and people affected by temporary land occupation. During the village-based investigation, the affected people are investigated and recorded household by household in terms of ethnic group, age structure, education background and employment status. Investigation of sporadic trees: on-site calculation of mulberry saplings and miscellaneous trees are conducted for areas affected by permanent land acquisition and temporary land occupation of the project. These trees are registered and recorded based on their species and sizes.

3.3 Major physical indicators on project impacts

The project needs to acquire and occupy 2,192.45 mu land in total. All of the land is owned by the rural collective. They include 670.99 mu for permanent land acquisition, and 1,521.36 mu for temporary occupation. No demolition and relocation will be involved. Among total permanently acquired land, there are 163.4 mu farmland, accounting for 24.4%; 23.48 mu scrub land, accounting for 3.5%; and 484.11 mu unused land, accounting for 72.1%. Within the land temporarily occupied, there are 373.86 mu farmland, accounting for 24.6%; 61.28 mu scrub land, accounting for 4%; and 1,086.22 mu unused land, accounting for 71.4%. On the land acquired and occupied, 40 mu mulberry saplings with 22,000 pieces and 106 sporadic miscellaneous trees need to be felled. The Project will affect 333 households and 1,131 people. Among them, 107 households and 366 people will be affected by permanent land acquisition and 226 households and 765 people will be affected by temporary land occupation. More detail breakdown of such impacts among three components is presented in Table 3.3-1. 3.3.1 Permanently acquired land The project needs to permanently acquire 670.99 mu land, including 163.4 mu farmland, 23.48 mu scrub and 484.11 mu unused land.

A. CBM exploration and production component According to the estimation of the project feasibility study organization, each completed CBM well will occupy 0.36 (14×17=238 m2) mu land during operation. In total, 350 wells need to acquire 126 mu land, including 30.6 mu farmland, 10.08 mu scrubland, and 85.32 mu unused land. 57 km-long well access road needs to acquire 342 mu land, including 82 mu farmland, 13.4 mu scrubland and 246.6 mu unused land. For the whole component, a total of 468 mu of land areas will be permanently acquired, including 112.6 mu farmland or 24%, 23.48 mu scrub land or 5%, and 332 mu waste land or 71%. B. CBM collection and transmission component Each gas collection station shall occupy 6 mu land. The three stations will occupy 18 mu land in total, including 1.2 mu farmland and 16.8 mu unused land. The metering and pigging


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station will occupy 1.89 mu land and the waste water treatment plant will occupy 3.1 mu land, and all of them will occupy unused land. The station access road will all use the existing village roads with no additional land acquisition. The total land acquisition for collection and transmission component will be 23 mu, including 1.2 mu farmland and 21.8 mu unused land. C. Component of LNG Plant LNG Plant component including LNG plant and parking area, needs to permanently acquire 180 mu land, including 49.6 mu farmland, accounting for 27.6%; 130.4 mu unused land, accounting for 72.4%. A detailed break down of total acquired land is presented in Table 3.3-1.

3.3.2 Temporary land occupation Temporarily occupied land refers to the land temporarily borrowed during the construction period, the land to the temporarily occupied during CBM well construction and the installation of gas recovery pipeline, gas collection pipeline and gas transmission pipeline, totaling 1,521.36 mu. Average land occupation term is one year. Within the temporarily occupied land, there are 373.86 mu farmland, accounting for 24.6% of temporarily occupied land; 61.28 mu scrubland, accounting for 4%; and 1,086.22 mu unused land, accounting for 71.4%. A. CBM exploration and production component During the construction period of CBM wells, the total occupied land of the well site of each well is 2.1 mu, including 0.36 mu permanently acquired land and 1.74 mu temporarily occupied land with an occupation term of one year. 350 wells need 609 mu temporarily occupied land, including 146 mu farmland, accounting for 24% of the total; 47 mu scrubland, accounting for 7.7%; and 416 mu unused land, accounting for 68.3%. B. CBM collection and transmission component During the construction period of 150.6 km-long gas recovery and collection pipelines (135 km-long gas recovery pipelines and 15.6 gas collection branch pipelines), 903.8 mu of land areas will be temporarily occupied, including 224.7 mu farmland, accounting for 24.8% of the total; 14.3 mu scrub land, accounting for 1.6%; 664.8 mu unused land, accounting for 73.6%. C. LNG Plant component During the construction of 1.43 km-long gas transmission pipeline, 8.6 mu land will be occupied, including 3 mu farmland, accounting for 34.9% of the total; 5.6 mu barren land, accounting for 65.1%. A detailed break down of total temporarily occupied land is presented in Table 3.3-1.

3.3.3 People affected by the project The project affected people include people affected by permanent land acquisition and people affected by temporary land occupation of the project construction. According to the on-site investigation, the project land acquisition will affect 107 households and 366 people and the temporary land occupation will affect 226 households and 765 people. See Table 3.3-2 for the affected people of different categories.


29


30

Table 3.3-1 Land Acquisition and Resettlement Impacts for Proposed Project

Permanent Land Acquisition Impact Temporary Land Occupation Impact

Permanent Land Acquisition (mu) AffectedPeople

HHDisplaced

BusinessAffected Trees Temporary Land Occupation (mu) Affected

People

HHDisplaced

BusinessAffec

TreesList of Components and Sub-

projects

Total

land

Farm

land

Scrub

Land

Waste

LandHH

Pers

onsTotal land Farm

landScrubLand

WasteLand

HH Persons

1. Gas Exploration andProduction

468.0 112.6 23.5 331.9 80 270 None None 14 609.1 146.2 47.0 415.9 85 290 None None 38

GasWell Development 126.0 30.6 10.1 85.3 22 73 None None 8 609.1 146.2 47.0 415.9 85 290 None None ��

Access roads 342.0 82.0 13.4 246.6 58 197 None None 6

2. Gas Collection & Transmission 23.0 1.2 21.8 1 4 None None 903.7 224.7 14.3 664.7 138 464 None None ��

3 gas stations, 1 metering station, and 1 wastewater treatment plant

23.0 1.2 21.8 1 4 None None

151 km Gas Pipelines 0.0 903.7 224.7 14.3 664.7 138 364 None None ��

3. LNG Plant Construction 180.0 49.6 130.4 26 92 None None 22000 8.6 3.0 5.6 3 11 None None

4 Liquefaction Plants 180.0 49.6 130.4 26 92 None None

1.43 km LNG pipelines 0.0 8.6 3.0 5.6 3 11 None None

TOTAL PROJECT 671.0 163.4 23.5 484.1 107 366 None None 22014 1521.4 373.9 61.3 1086.2 226 765 None None 92


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Table 3.3-2 Project Affected People by Proposed Project

Permanent Land Acquisition Temporary Land Occupation Components

Households Persons Households Persons

350 Wells 22 73 85 290

Access Roads 58 197

CBM Exploration

and Production Sub-total 80 270 85 290

Collection Stations

1 4

Metering Station

Wastewater Plant

Access Roads Gas Recovery

Pipelines 113 379

Gas Collection Branch

Pipelines 25 85

� CBM

Collection and Transmission Component

� � � �

Sub-Total 1 4 138 464

LNG Plant 26 92

Gas Pipelines 3 11 LNG Plant

Sub-total 26 92 3 11

Total 107 366 226 765

3.3.4 Sporadic trees During the investigation process of project impact physical indicators, trees in the forest and sporadic trees dispersed in farmland and roads affected by the project are calculated and recorded in terms of ownership, tree species and sizes. According to the actual investigation, 22,106 sporadic trees need to be felled for this project, with 22,000 being small mulberry trees from proposed LNG plant site. Table 3.3-3 provides a detailed list of sporadic trees to be felled.

Table 3.3-3 Sporadic Trees to be Removed by the Project Mulberry Trees Other Trees Fruit Trees

Components Total Trees young mature young mature Young Mature

350 Wells 6 12 6 16 4

Access Roads 46 8 4 2 CBM

Exploration and Production Sub-total 52 20 10 18 4

3 stations, 1 metering, 1 wastewater

47 16 13 8 2 4 4

150.6 km gas pipelines

7 3 4

CBM Collection and Transmission

Sub-Total 54 16 13 8 2 7 8

LNG Plant 22000 22000

Gas Pipelines LNG Plant

Sub-total 22000 22000

Total 22106 22036 23 26 6 7 8


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3.4 Vulnerable groups affected by the project

The vulnerable groups mainly include poor households with per capita annual income lower than 1,000 Yuan, households with disabled people, households with only older people and ethnic minority households. According to our investigation, the project doesn’t affect any ethnic minority people. There are 21 vulnerable persons, accounting for 5.8% of the total affected people. They are mainly poor families and older people living alone. During the resettlement implementation, based on the family member structure, employment situation, family resources and data provided by the local civil affairs department, affected vulnerable groups will be further confirmed. Once an affected household is identified as vulnerable group, the project implementation organization will provide them with extra financial assistance during resettlement implementation. It is preliminarily set at Y3,000 per person. The actual amount might be readjusted during implementation after reviewing their actual needs.

3.5 Analysis on the impacts of the project

Because of land acquisition of the project, village farmland area within the affected area will be reduced to some extent, causing certain impacts on the livelihood and economic production in the project areas. However, due to limited impacts by the proposed project components and relatively large farmland holding in the project area, the impacts of the project construction on the local economy will be relatively small. The construction of CBM wells, well access road, and gas collection stations as well as LNG plant will need permanent land acquisition of 163.4 mu of farmland. The acquisition of the farmland will affect 107 households and 366 persons from 13 village groups in 7 villages. The acquisition of these farmlands will account for 0.9% of total farmland in the 7 villages; and 2.8% of total farmland in 13 affected village groups. For those directly affected people, the land acquisition will result in losing 0.45 mu of farmland per person, accounting for 14% of their average land holding. As we can see, the land acquisition will have little impacts on affected villages or village groups. But for those affected people, the land acquisition will have certain impacts on their livelihood due to loss of 14% of farmland. According to the investigation, among 7 affected villages, 4 of them have sufficient amount of village owned reserved farmland. They are Shishi, Kongbi, Langbi and Dongshan. They will re-allocate same amount of farmland to those affected individuals so that their per capita land could be restored into amount before land acquisition. As a result, the potential impacts on these households could be mitigated. For the remaining 3 villages with no village reserve land, due to relatively high land holding, they could carry out farmland readjustment within their affected village groups. As a result, the farmland reduction for those affected people in these three villages could be reduced to only 0.53%, 1.42% and 2.54% respectively. At the same time, both villages and individuals will receive adequate cash compensations from the


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Project, which could be used to improve their farming condition, engage in new income generation activities and improve village welfare and infrastructure, so that their livelihood and income could be restored and improved. Table 3.5-1 lists the land acquisition impacts on the villages and village groups.

Table 3.5-1 Land acquisition impacts on affected village groups

Basic Condition Land

Acquisition Impacts Village

Village Group

No.

Affected Village Groups Total

Households Total

People Total

Farmland (mu) HH Persons

Land Acquisition

(mu)

% of total farmland

No.2 30 109 613 3 11 4 0.7 Xiliang 1

Village 88 320 1800 3 11 4 0.2

No.3 38 130 452 6 21 9.3 2.1

No.4 40 142 495 13 30 12 2.4 Shishi 2

Village 185 634 2200 15 51 21.3 1.0

No.1 45 142 280 6 19 8 2.9

No.2 40 126 245 4 13 6.7 2.7 Yugou 2

Village 130 410 800 10 32 14.7 1.8

No.3 75 237 825 5 16 8 1.0 Kongbi 1

Village 298 939 3270 5 16 8 0.2

No.3 40 137 450 7 23 12.3 2.7

No.4 46 158 500 9 30 10.3 2.1

No.5 39 133 430 8 28 11.4 2.7

No.7 29 99 350 9 29 13 3.7

No.8 32 109 380 9 34 11 2.9

Langbi 5

Village 349 1195 3908 42 144 58 1.5

No. 4 48 167 470 6 20 8.1 1.7 Hetou 1

Village 354 1230 3500 6 20 8.1 0.2

No. 1 42 151 270 6 20 9.6 3.6

Collective 200 20 72 40 20 Dongshan 1

Village 156 560 1198 26 92 49.6 4.1

Total 13 13 1560 5288 16676 107 366 163.4 0.9

Note: (1) 200mu of farmland is village collective reserve land for Dongshan Village.

(2) 20 households and 72 persons are renting land from village collectives.

4. Legal Framework of Compensation Policies

The development and implementation of the RAP will strictly comply with national laws and local regulations and World Bank Policies on Involuntary Resettlement (OP/BP 4.12). The resettlement implementation will strictly follow the related policies and standards identified by the RAP. Any change during the implementation is subject to the agreement of the World Bank.

4.1 Policy references

The major laws and policies related to the project land acquisition and resettlement of the project:


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z�World Bank Operational Policies OP/BP 4.12 “Involuntary Resettlement” z�“Land administration law of P. R. China” (passed in 1986 and amended in

1988, 1998, and 2004); z�“Regulations on granting state-owned land use rights by invitation for

tenders, auction or listing” (No. 11 Decree of the Ministry of Land and Resources of P. R. China. Implemented from July 1, 2002)

z� “State Council’s decision on deepening reform of and tightening up land

management” (Document guo-fa (2004) No. 28) z�“Implementation methods for ‘Land administration law of P. R. China’ in

Shanxi Province” (passed on the 12th meeting of the Standing Committee of the Ninth People’s Congress of Shanxi Province on September 26, 1999)

z�“Compensation collection standards on forest acquisition and occupation of

Shanxi Province” (Developed by Price Control Bureau of Shanxi Province, Forest Bureau of Shanxi Province and Finance Department of Shanxi Province, and implemented from April 1, 1994)

z�“Allocation methods of land acquisition compensation for the acquisition

and occupation of farmers’ collectively-owned land in Shanxi Province” (passed on the 57th executive meeting of the Provincial People’s Government on October 17, 2005 and implemented from December 1st, 2005)

z�“Notice on opinions about construction project land acquisition

compensation in Shanxi Province”, (Document jin-guo-tu-zi-fa (2007) No. 193, issued in May 2007)

4.2 Relevant laws and regulations

4.2.1 Related contents about involuntary resettlement operational policies of the World Bank - OP 4.12

(1) The overall objectives of the Bank’s policy on involuntary resettlement are the following:

The World Bank resettlement policies are aimed to guarantee that affected people due to development projects can benefit from the project. Involuntary resettlement is an integral part of the project development. From the earliest stage of project preparation, involuntary resettlement work should begin based on the following policies:

• Involuntary resettlement should be avoided if possible or minimized, exploring all

viable alternative project designs.


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• Where it is not possible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs.

• Displaced 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.

• All the people affected by the project should be compensated in order to improve

or at least restore their standards of living and compensate the assets they lost. The asset losses should be compensated at replacement cost. It is not allowed to reduce or discount compensation based on depreciation or other reasons.

• All the people affected by the project should obtain interests from the impacts. In

addition to compensation for asset loss, subsidy should be granted for rehabilitation purpose. People affected by the project who conduct business, land reclaiming and construction without property, interest or legal residence permit should be treated in the same way as those with formal legal property, interest or permit. They are entitled to rehabilitate their life and obtain compensation for their assets.

(2) Measures and requirements to achieve the objectives In order to solve the working and living difficulties of the affected people caused by the loss of productive assets or other assets due to the involuntary land acquisition in the World Bank-funded project, the World Bank requires the borrower to compile resettlement plan or resettlement policy framework, that covers the following: • The resettlement plan or resettlement policy framework includes measures to

ensure that the displaced persons are: a. informed about their options and rights pertaining to resettlement; b. consulted on, offered choices among, and provided with technically and

economically feasible resettlement alternatives; and c. provided prompt and effective compensation at full replacement cost for

losses of assets attributable directly to the project. • If the impacts include physical relocation, the resettlement plan or resettlement

policy framework includes measures to ensure that the displaced persons are: a. provided assistance (such as moving allowances) during relocation; b. provided with residential housing, or housing sites, or, as required, agricultural

sites for which a combination of productive potential, location advantages, and other factors is at least equivalent to the advantages of the old site.


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• Where necessary to achieve the objectives of the policy, the resettlement plan or

resettlement policy framework also include measures to ensure that displaced persons are

a. offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; and

b. provided with development assistance in addition to compensation measures, such as land preparation, credit facilities, training, or job opportunities.

4.2.2 Related provisions in “Land administration law of P. R. China” Article 2 The state may, for the necessity of public interest, requisition land and provide compensation in accordance with law.

Article 10 Farmers’ collectively-owned land that belongs to peasants’ collective ownership of a village according to law shall be managed and administered by the village collective economic organization or villagers’ committee; the land that belongs separately to more than two rural collective economic organizations and owned collectively by peasants shall be managed and administered by the respective rural collective economic organizations or village groups; the land that belongs to township (town) peasants’ collective ownership shall be managed and administered by the township (town) rural collective economic organization. Article 47 For requisition of land, compensation shall be given in accordance with the original use of the requisitioned land. Compensation fee for the farmland requisitioned include land compensation fee, subsidy for resettlement as well as compensation fee for ground attachments and standing crop. Land compensation fee for the farmland requisitioned shall be six to ten times of the annual average output value in the three years prior to requisition. Subsidy for resettlement for the farmland requisitioned shall be calculated on the basis of the agricultural population that requires resettlement. The agricultural population that requires resettlement shall be calculated on the basis of the amount of farmland requisitioned divided by the average per capita occupancy of farmland of the unit requisitioned. The rate of subsidy for resettlement per head of the agricultural population that requires resettlement shall be four to six times of the annual average output value in the three years prior to requisition of the said farmland. However, the maximum subsidy for resettlement for farmland requisitioned per hectare shall not exceed fifteen times of the annual average output value in the three years prior to the requisition. The rate of land compensation fee and subsidy for resettlement for the requisition of other lands shall be fixed by the provinces, autonomous regions and municipalities directly under the Central Government, taking the rate of land compensation fee and subsidy for resettlement for the requisition of farmland as reference. Rate of compensation for ground attachments and standing crop on the requisitioned land shall be fixed by the provinces, autonomous regions and municipalities directly under the Central Government.


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For requisition of suburban vegetable plots of municipalities, the land use unit should, pursuant to relevant state provisions, pay to the new vegetable plot development and construction fund. Additional subsidy for resettlement may be provided for those farmers who require resettlement and cannot maintain their original living standards on the basis of land compensation fee and subsidy for resettlement the payment of which is effected pursuant to the provisions of the Second Paragraph of this Article subject to the approval of people’s governments of the provinces, autonomous regions and municipalities directly under the Central Government. However, the total of land compensation fee and subsidy for resettlement shall not exceed thirty times of the annual average output value in the three years prior to requisition of the land. The State Council may, in accordance with the level of socio-economic level, increase the rate of land compensation fee and subsidy for resettlement under extraordinary circumstances. Article 48 Upon determination of the scheme for compensation and resettlement for land requisition, the local people’s government concerned should make an announcement and seek the views of the rural collective economic organization and farmers of the requisitioned land. Article 49 The rural collective economic organization of the requisitioned land should publish the revenue and expenditure of the compensation fee of the requisitioned land for the members of the respective collective economic organization and accept supervision. It is forbidden to embezzle or divert the land compensation fees and other related expenses. Article 50 Local people’s governments at all levels should provide support for rural collective economic organizations and farmers of the requisitioned land for development and management and establishment of enterprises.

Article 57 Construction of a construction project and geological survey that need to temporarily use state-owned land or land collectively owned by farmers, it shall be subject to the approval of the competent department of land administration of the people’s government at or above the county level. Among which, for temporary use of land within an urban planning zone, consent of the competent department of urban planning should be sought first prior to submission for approval. The land user should conclude a contract for the temporary use of the land with the competent department of land administration concerned or the rural collective economic organization and villagers’ committee in accordance with the ownership of the land, and effect the payment of compensation fee for the temporary use of the land.

User of temporary use of the land should use the land according to the use agreed on in the contract for the temporary use of the land and shall not construct permanent constructions thereon.


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The duration of temporary use of land shall generally not exceed two years.

4.2.3 Regulations on granting state-owned land use rights by invitation for tenders, auction or listing Article 2 These regulations are applicable when granting state-owned land use right by public bidding, auction or listing within the borders of People’s Republic of China. Granting state-owned land use right by public bidding in this regulation refers that land administration department of government at city or county level (grantor) publish notice to invite specified or unspecified citizens, legal persons and other organizations to participate into the pubic bidding for the use right of state-owned land and determine the behavior of land users according to the results of the bidding. Granting state-owned land use right by auction in this regulation refers that grantor publish notice of auction and potential buyers compete publicly through pricing at designated time and in designate place. The behavior of land user will be determined according to the result of pricing competition. Granting state-owned land use right by listing refers that grantor publish listing notice to list the transaction requirements of land granting on the land to be granted in designated land exchange according to the time limit announced in the notice, accept the quota application from potential buyers and update the listed price. The behavior of land user will be determined by the pricing result at the deadline of the time limit. Article 4 All types of commercial land for the use of commerce, tourism, entertainment and commercial residence must be granted through public bidding, auction or listing. After the plan of land providing is announced on the land of which the usage is out of the prescription in the above provision, the granting of land use right should also be carried out through public bidding, auction or listing if there are two or more than two potential buyers. Article 5 Granting activities of state-owned land use right through public bidding, auction or listing should be carried out with plans. Land administration department of government at city or county level should public the notice to the society after drawing the state-owned land usage right granting plan in accordance with the social and economic development plan, industrial policy, general land use plan, annual land use plan, urban plan and land market condition and getting approval from the government at the same level. Article 6 Land administration department of government at city or county level should draft the usage, term of use, means, time and other conditions of granting according to the granting plan together with relevant department of urban planning and organize the granting activities after getting the approval from the government at city or county level.

4.2.4 Relevant provisions in “State Council decision on deepening reform of and tightening up land management” (12) To improve means of land acquisition compensation. Government above county

level should adopt substantial countermeasures to make sure that living standard of farmers whose land is acquired won’t be affected. Government should ensure that compensation fee of land acquisition, resettlement subsidy, land appendage and standing crop compensation should be paid on time and in full according to the laws. If the compensation fee of land acquisition and resettlement subsidy


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paid according to the current law and regulation are not sufficient to rehabilitate the living standard of the farmers whose land is acquired, governments of provinces, autonomous regions and municipalities directly under central government should approve to increase the compensation fee. If compensation fee of land acquisition and resettlement subsidy still can not rehabilitate the living standards of farmers whose land is acquired when the sum of compensation and subsidy has reached the high limit of the laws and regulations, local government can subsidize farmers with revenue from paid use of state-owned land. Governments of provinces, autonomous regions and municipalities directly under central government should stipulate and publish the uniform production value standard and regional land price of all cities and counties to ensure that land in the same region will be sold at the same price in land acquisition. National key projects must put the land acquisition compensation fee in full amount into the budget.

(13) To properly resettle the farmers whose land is acquired. Government at the

county level or above should formulate detailed countermeasures to safeguard the long term living of farmers whose land is acquired. Farmers who have stable channels of income could have shares of use right of constructive land getting legal approval. If the land acquired is in urban planning area, local government should incorporate farmers having no land due to land acquisition into the urban employment system and establish social security system. If the land acquired is outside urban planning area, when acquiring collectively owned land of farmers, local government should arrange necessary area of arable land in its own administrative area or relevant job opportunities for farmers whose land is acquired. Farmers with neither land nor basic production and living conditions should be considered and arranged as immigrants. Labor and social security department should raise guiding proposals on the establishment of employment training system and social security system together with relevant departments.

(14) To improve the procedure of land acquisition. During land acquisition, rights and

interests of farmers’ ownership of collective land and land contracting management right should be protected. Before submitting land acquisition plan, government should notify farmers about the usage, location, compensation standards and means of resettlement. The result of survey on current situation of land which is planned to be acquired should be confirmed by rural collective economic groups or individual farmers. Land resource department should organize hearings according to relevant rules and regulation if necessary. Materials informed and confirmed by farmers whose land is acquired should be prepared as necessary documents of land acquisition application. The coordination and arbitration system for dealing with disputation in land acquisition and resettlement will be speeded up in establishment so as to protect legal rights and interests of farmers whose land is acquired and land users. Land acquisition being approved should be publicly announced except for some special occasions.

(15) To strengthen supervision on land acquisition. Land acquisition cannot be

enforced if compensation of land acquisition and resettlement subsidy are not in place. Governments of provinces, autonomous regions and


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municipalities directly under central government should stipulate allocation measures of land compensation fee inside rural collective economic groups. Rural collective economic groups whose land is acquired should inform their members about the income, expense and allocation of land acquisition compensation fee and accept their supervision. Agricultural and civil affairs departments should strengthen the supervision on payment and use of compensation fee by rural collective economic groups.

4.2.5 Relevant provisions in “Implementation methods for ‘Land administration law of P. R. China’ in Shanxi Provinces” Article 27 For land acquisition, land users should pay the compensation fee according to the following standards: (1) When acquiring basic farmland (orchard, fishing pool and lotus pool are all

considered as basic farmland), the compensation fee should be eight to ten times of average production value of three years before acquisition;

(2) When acquiring arable land other than basic farmland, the compensation fee should be six to nine times of average production value of three years before acquisition;

(3) When acquiring pasture land and grass land, the compensation fee should be seven times of average production value of three years before acquisition;

(4) Forestry acquisition should be compensated according to relevant rules and regulations; (5) House premises should be compensated according to that of the neighboring arable land; (6) Vacant land, desolated hills, land and sands should be compensated at three to six

times of the average production value of three years before acquisition of the whole village;

(7) Threshing floor, drying area and other types of land used for collective production should be compensated according to the compensation standards of the original type of land.

Article 28 For land acquisition, land users should pay the resettlement subsidy according to the following standards: (1) When acquiring basic farmland (orchard, fishing pool and lotus pool are all

considered as basic farmland), the resettlement subsidy should be five to six times of average production value of three years before acquisition;

(2) When acquiring arable land other than basic farmland, the resettlement subsidy should be four to five times of average production value of three years before acquisition;

(3) When acquiring pasture land and grass land, the resettlement subsidy should be five times of average production value of three years before acquisition;

(4) Forestry acquisition should be subsidized according to relevant rules and regulations;

The resettlement subsidy of acquired land in the above mentioned provisions should be no more than 15 times of average production value of three years before acquisition per hectare.

Acquiring house premises, vacant land, desolate land, hills and sands and drying fields will not be subsidized with resettlement subsidy.


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Article 29 Average production value of three years before acquisition should be calculated according to the following measures: (1) Farmers whose land is acquired should report to the village committee about the

production of the acquired land in previous three years; (2) Township government and village committee should publish the production

situation from the report of farmers whose land is acquired to listen to feedback from farmers;

(3) Township government and village committee will check the reported land situation according to the feedbacks from farmers;

(4) Land administration department of government at county level or above should calculate the production, production value of the acquired land in former three year and the average value according to the reviewed production situation, statistics report from statistics bureau at the same level and price of the crop at the same period.

Article 30 According to Article 27 and 28, if the compensation and resettlement subsidy paid cannot maintain the living standard of farmers, the government can add the allocation subsidy after getting approval from the provincial government. However, the sum of compensation and resettlement subsidy cannot exceed thirty times of average production value of three years before acquisition. Article 31 For land acquisition, land users should pay compensation fee for land appendage and standing crop according to the following standards: (1) Land appendage like buildings can be compensated based on estimated price

according to relevant regulations and by appendage of same quantity and quality; (2) The value of standing crop should be calculated by the value of crop less than one season; (3) For the trees that can be bedded out, the labor cost and cost for lost during bedding

out should be paid. If cannot be bedded out, the trees will be compensated based on estimated price according to relevant regulations;

(4) Fish, lotus root, grass and other products should be compensated based on estimated price;

Tress and other appendage planted or built after the land acquisition plan is published won’t be compensated. Illegal buildings and other facilities on the land that is acquired won’t be compensated.

4.2.6 “Compensation standards on forest acquisition and occupation of Shanxi Province” As for forest acquisition and occupation, forest compensation, tree compensation, forest vegetation rehabilitation fee and resettlement subsidy should be paid. (I) Forest compensation standards for forest acquisition and occupation: 1. As for the acquisition, occupation and use of forest, the compensation is 4 -5 times

of the forest inventory value when the land is acquired or occupied (based on the current national timber price, the same below).


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2. As for the occupation and acquisition of natural young forest and bush forest, based

on the tree growth situation, the compensation is 200 – 400 Yuan/mu. 3. As for the acquisition and occupation of artificial young forest, the compensation is

4 times of the forest cultivation, nurturing, maintenance and management cost. 4. As for the acquisition and occupation of orchard land, the compensation is 6 times

of the annual production value in full fruiting period. 5. As for the acquisition and occupation of nursery, the compensation is 3 to 6 times

of the annual production value of the adjacent farmland. (II) Tree compensation standards 1. Compensation standards for timber forest: (1) Compensation standards for young age tree: 1 – 3 Yuan/year for each artificial

sapling and 0.5 -2.5 Yuan/year for each natural sapling based on the specific species.

(2) As for middle-aged forest and nearly mature forest, 80% of the value of the local

forest inventory during forest acquisition and occupation. (3) As for mature and over-mature forest, 30% of value of the felled timber. 2. As for the compensation standards for protection forest and special purpose forest,

3 times of the compensation standards of timber forest. 3. As for the compensation standards for economic forest and firewood forest, 2 times

of the annual average production value of the local forest with the same species of trees in full fruiting period in previous three years.

4. As for the compensation standards for nursery forest, the standard is the local

selling price of the same tree products sold by other nursery. (III) The decision of the forest vegetation rehabilitation fee should be based on the

costs of investigation, planning, design and forest cultivation for the rehabilitation of the forest vegetation with a size no less than acquired or occupied forest area. The specific charge standards are as follows:

1. 6 Yuan/square meter for timber forest, economic forest, firewood forest and

nursery. 2. 4 Yuan/square meter for planted land where forest has not been formed.


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3. 8 Yuan/square meter for protection forest and special purpose forest; 10 Yuan/square meter for national key protection forest and special purpose forest.

4. 3 Yuan/square meter for open forest and bush forest. 5. 2 Yuan/square meter for suitable land for forest, felled land, logging slash and fire

slash.

As for forest land within the urban areas or urban planning area, the compensation rate is 2 times of the above standards. As for forest occupation for housing construction by the farmers according to relevant regulations, forest vegetation rehabilitation fee is not charged during the 10th five-year plan period.

(IV) Resettlement subsidy standards for forest land acquisition and occupation:

Resettlement subsidy for collective forest acquisition is 2 times of annual production value per mu.

Resettlement subsidy standards for the occupation of state forest are 3 times of the annual production value per mu.

The forest tree annual production value is based on the value of annual incremental inventory per mu. The annual production value of the nursery is the annual average production value per mu. The annual production value of economic forest is the value of production volume per mu at full capacity period.

(V) The compensation for the temporary forest occupation is 50% of the forest

permanent acquisition compensation. When trees need to be felled, the tree compensation and forest vegetation rehabilitation fee will also be paid.

4.2.7 Relevant provisions in “Allocation methods of land acquisition compensation for the acquisition and occupation of farmers’ collectively-owned land in Shanxi Province” Article 5 Agriculture, agricultural economy and other departments of government at county level or above should strengthen supervision and management on allocation of compensation fee of land acquisition owned by rural collective economic groups. Article 6 Before submitting the land acquisition application, land resources department of government at county level or above should notify farmers, rural collective economic groups and owners of land appendage in written form the usage, location, area, compensation standards and means of resettlement.


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Land resources department of government at county level or above should conduct surveys on the ownership, land types, areas and ownership, types and quantity of land appendage of the land that is going to be acquired, and confirm the results together with farmers, rural collective economic groups and owners of land appendage. Relevant materials of the confirmation should be served as the necessary document of application. Land acquisition that is being legally approved should be published. Article 10 Land user should pay the compensation fee to the farmers in full with in three months after the application being approved. After receiving agreement from farmers, land user can pay the compensation fee in installment according to the contract made with farmers whose land is acquired. Before the compensation fee is paid in full, land resources department won’t issue the approval or conduct procedure of land granting, land user cannot enforce land acquisition nor begin the construction, and farmers and rural collective economic groups of the land to be acquired will continue have the land use right. Article 13 For land which has clear ownership, when being partly or fully acquired, the compensation fee should be paid to the farmers at the proportion of no less than 80% and the remaining 20% will be left to the rural collective economic groups. For land which does not have clear ownership, when being partly or fully acquired, no less than 80% of the compensation and resettlement subsidy will go equally to all the members of the rural collective economic groups. Article 14 Compensation fee for land appendage and standing crop should be fully paid to the owners of the land appendage and standing crop. Article 17 Compensation fee left to rural collective economic groups belong to collective asset which should be incorporated in the management of public accumulative and public beneficiary fund for production, increasing accumulation, collective welfare, social benefit undertakings and so on. The fund cannot be used to pay non-production expenses such as remuneration to officials, catering fees or debts. Plans for using the compensation fee left to rural collective economic groups should be agreed by the all the members or no less than two thirds of the members in the group meeting. Income and expense of the compensation fee should be published in time for supervision from farmers. Article 18 Rural collective economic group should publish payment and allocation of the compensation fee.


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Agricultural and agricultural economy department of government at county level or above should carry out auditing and supervision on the allocation and usage of the compensation fee. 4.2.8 “Notice on opinions about land acquisition compensation of construction

project in Shanxi Province” According to the requirements of provincial government, the following opinions are made on the land acquisition compensation of construction projects in our province: I. Before new land acquisition compensation standards are officially issued, farmland

acquisition for construction project shall temporarily use the annual production value standards and compensation times submitted by provincial land resources department to Ministry of Land and Resources, the area which the counties (city, district) belong to and the actual land occupation area in order to identify land compensation and resettlement subsidy.

II. The farmland acquisition for highway construction project shall temporarily use

the average annual production value standard and average compensation times of the cities submitted by provincial land resources department to Ministry of Land and Resources to identify land compensation and resettlement subsidy.

III. The land acquisition compensation fee for construction land and unused land for

various construction projects and compensation for land appendage and standing crop shall comply with “Implementation methods for ‘Land administration law of P. R. China’ of Shanxi Province”.

IV. For land use application (documents) which has been submitted to provincial

government or the State Council for approval or the approval is pending, land acquisition compensation fee shall not be adjusted. After national land acquisition compensation standard is officially issued, the national standard shall apply.

4.3 Compensation standards

4.3.1 Land occupation and acquisition compensation standards A. Compensation fee standards for permanent land acquisition (1) Compensation standards for farmland acquisition According to the Document jin-guo-tu-zi-fa (2007) No. 193 issued by Shanxi Land Resources Department, Qinshui County Land Resources Bureau has divided the villages within its jurisdiction into eight areas based on the location, climate, transport and grain growth pattern of these villages and identified the annual farmland production value and compensation standards for land compensation, resettlement subsidy, and standing crop compensation of the villages in each area. The project affected villages’ annual production value, land compensation, resettlement subsidy and standing crop compensation times are as follows:


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Xiliang Village in Zhengzhuang Town belongs to the northwest area, with annual production value of 861.89 Yuan/mu. Its land compensation is 9 times of annual production value, its resettlement subsidy is 13 times of annual production value, and its standing crop compensation fee is equivalent to one-year production value. Hetou, Kongbi, Langbi, Shishi and Yugou Villages in Zhengzhuang Town and Dongshan and Jinfeng Villages in Duanshi Town belong to the middle area, with an annual production value of 1,091.58 Yuan/mu. Their land compensation is 9 times of annual production value, their resettlement subsidy is 17 times of the annual production value and their standing crop compensation fee is equivalent to one-year production value. (2) Scrub land acquisition compensation standards Scrub land acquisition compensation include land compensation fee, resettlement subsidy, tree compensation and vegetation rehabilitation fee (calculated within related taxes and surcharges). According to “Compensation collection standards on forest acquisition and occupation of Shanxi Province”, for this project, the forest compensation fee is 5 times of the average annual production value, the resettlement subsidy is 2 times of the annual production value, the scrub tree compensation is 400 Yuan/mu. According to the investigation, the forest annual average production value in Qinshui County is 800Yuan/mu. Therefore, the compensation standards for scrub land compensation in the project is set at 6,000 Yuan per mu: 6,000 Yuan/mu (800×5+800×2+400=6000). (3) Compensation standard for unused land acquisition According to Article 27 and Article 28 in Shanxi’s implementation method of “Land administration law of P. R. China”, the compensation for acquisition of unused land, waste mountain, barren land and desolate sands is 3 to 6 times of the average annual farmland production value in the three years before the land acquisition. No resettlement subsidy is given for the acquisition of unused land. The permanent land acquisition compensation standard of the project is 5 times of the average annual farmland production value of the whole village in the past three years before land acquisition. They include: Xiliang: 4,309.5 Yuan/mu (861.9×5=4309.5); Shishi, Yugou, Kongbi, Langbi, Hetou and Dongshan: 5,457.9 Yuan/mu (1091.58×5=5457.9). Table 4.3-1 provides a detail list of different types of land compensations. Table 4.3-1 Compensation standards for the acquisistion of various categories of land

Farmland or Scrub land compensation

Resettlement subsidy Village Land category

Annual Average Output value

(Yuan/mu) Times Standard Times Standard

Standing crop or tree

compensation

Total compensation

standard (Yuan/mu)

Farmland 861.9 9 7757.1 13 11204.7 861.9 19823.7

Scrub land 800 5 4000 2 1600 400 6000 Xiliang

Unused land 861.9 5 4309.5 0 0 4309.5

Farmland 1091.58 9 9824.22 17 18556.86 1091.58 29472.66 Shishi

Unused land 1091.58 5 5457.9 0 0 5457.9


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Farmland 1091.58 9 9824.22 17 18556.86 1091.58 29472.66

Scrub land 800 5 4000 2 1600 400 6000 Yugou

Unused land 1091.58 5 5457.9 0 0 5457.9

Farmland 1091.58 9 9824.22 17 18556.86 1091.58 29472.66

Scrub land 800 5 4000 2 1600 400 6000 Kongbi

Unused land 1091.58 5 5457.9 0 0 5457.9

Farmland 1091.58 9 9824.22 17 18556.86 1091.58 29472.66

Scrub land 800 5 4000 2 1600 400 6000 Langbi

Unused land 1091.58 5 5457.9 0 0 5457.9

Farmland 1091.58 9 9824.22 17 18556.86 1091.58 29472.66 Hetou

Unused land 1091.58 5 5457.9 0 0 5457.9

Farmland 1091.58 9 9824.22 17 18556.86 1091.58 29472.66 Dongshan

Unused land 1091.58 5 5457.9 0 0 5457.9

B. Compensation standards for temporary land use during construction The temporary land use compensation of the project includes land compensation fee and reclaiming fee. The land compensation is mainly used to compensate all the output or income of the land to the land owner. The reclaiming fee should be used for the reclaiming of temporarily occupied land after the occupation term is over. The land compensation fee shall be decided according to the annual output value of the land and the occupation time. The reclaiming fee shall be decided by the local land resources authorities based on the relevant regulations of the provincial government. The temporary land use of this project involves farmland, unused land, and scrub land. The construction period is one year. In Qinshui County, for temporary land occupation due to CBM projects, the compensation standards have been formulated through consultation between the project sponsors and current land users. The adopted compensation rates are 2,800 Yuan/mu year for vegetable plot compensation, 1,400 Yuan/mu year for other farmland, 900 Yuan/mu for srucb land, and 700 Yuan/mu for unused land. The reclaiming deposit is 3,000 Yuan/mu for farmland and 1,500 Yuan/mu for non-farmland and Y 2,000 per mu for scrub land. 4.3.2 Compensation fee for attachments Based on the current project impact scope, no houses need to be demolished. If any house needs to be demolished according to the detailed design, the compensation standards should be discussed and agreed on according to the prices identified in “Notice on ordinary housing replacement cost of Qinshui County in 2007” issued by County Price Control Bureau and Urban Construction Bureau and approved by Qinshui County People’s Government Office. The basic compensation standards are included in Table 4.3-1.


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According to the survey, the attachments are involved in the Project are mainly various trees. Based on replacement principle and relevant provincial regulations, a set of compensation standards has been adopted by Qinshui County for different types of trees and different size of trees. Such compensation rates have been implemented in CBM projects under North China Branch of Petro China, which are included in Table 4.3-2. Table 4.3-2 Compensation Standards for Houses and Attachments in Qinshui County

Types of Attachments

Categories Compensation Rates

(Yuan/m2) Brick wood Structure 400 Earth wood Structure 320

Simple Structure 150 Brick Stone Cave Dwelling 200

Houses

Brick Concrete Structure 540-600 Tomb 500 / piece

With covers 350 / piece Toilet

Without covers 300 / piece Mulberry trees (small) 5 / piece

Mulberry trees (mature) 20 / piece Fruit Trees (small) 10 / piece

Fruit Trees (middle) 50 / piece Fruit Trees (large) 100 / piece Other trees (small) 5 / piece

Trees

Other trees (large) 10 / piece

4.4 Entitlement Matrix of project affected people

See Table 4.4-1 lists entitlement matrix for the affected people.

Table 4.4-1 Entitlement Matrix of the affected people for Project

Category of the impact

Affected object

Land acquisition compensation and resettlement policies applicable Compensation standards

Permanent land acquisition

Owner, contractor and tenant

1. For the land acquisition, the affected villages will obtain land compensation and resettlement subsidy paid by the Project. The compensations are set by Qinshui County Land Resources Bureau in accordance to Shanxi Provincial regulation. The specific amount is presented in next column.

2. The farmers whose land is acquired will obtain standing crop

compensation and ground appendage compensation as well. The villages or village groups will provide replacement farmland to affected farmers through land readjustment. Part of compensation will be used by the village group collective to improve farming conditions. Part of compensation will be distributed equally

1.Farmland (Yuan/mu) Xiliang: 19823.7 Shishi: 29472.7 Hetou: 29472.7 Kongbi: 29472.7 Langbi: 29472.7 Yugou: 29472.7 Dongshan: 29472.7 2. Barren land


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among all village members to be used for improving their farming or engaging in other income generation activities.

5457.9 Yuan/mu 3. Scrub Land: 6000 Yuan/mu

Temporary land use

Contractor The compensation fee for temporary land use includes land compensation and reclaiming deposit. The compensation fee should be identified based on the original annual production value of the land and the occupation period. Qinshui County temporary land use compensation method and annual production value standard have been decided based on the consultation between the land occupation organization and original land user. The existing common compensation standards are listed in the right. The project construction period is one year. The reclaiming fee should be decided by the local land resource authorities based on the relevant rules issued by the provincial government. The reclaiming deposit is 3,000 Yuan/mu for farmland and 1,500 Yuan/mu for non-farmland and Y 2,000 per mu for scrub land.

Dry farmland: 1400 Yuan/mu; vegetable plot: 2800 Yuan/mu Barren land: 700 Yuan/mu; Scrub land: 900 Yuan/mu

Sporadic trees

Owner As for all the sporadic trees to be felled or replanted for the project, their owners will be given cash compensation based on replacement cost or cost required for replanting.

miscellaneous trees small (d � 5 cm): 5 Yuan/tree; large (d� 5 cm): 10 Yuan/tree; Fruit Trees: Sapling 10 Yuan/tree; early fruiting tree, 50 Yuan/tree; full fruiting tree, 100Yuan/tree; mulberry sapling: 5 Yuan/tree; mulberry tree, 20 Yuan/tree.

5. Income Restoration and Rehabilitation Plan Under the centralized deployment of County Resettlement Leading Group, after widely collecting opinions of the village officials and the affected people, the RAP compilation group members proposed the preliminary economic rehabilitation plan based on the economic characteristics and resource use situation of the affected villages, according to the existing policies, laws and regulations of China and the resettlement requirements of the World Bank. After the discussion with County and Town Resettlement Offices and the affected village committees, the rehabilitation plan has been revised and finalized.

5.1 Objective and Principle of economic rehabilitation plan

5.1.1 Objective of Rehabilitation Plan The project resettlement plan’s overall objectives are that the affected people should have work opportunities, the labor forces should be properly resettled, and the


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production and living levels should be improved or at least maintained at the original levels. 5.1.2 Principles for Economic Rehabilitation According the national laws and regulations and the World Bank policies on involuntary resettlement, the project resettlement shall follow the basic principles: (1) Do a good resettlement work and realize related compensation policies to improve

or at least rehabilitate the working and living levels of the affected persons. (2) The resettlement should be comprehensive, taking into account different aspects.

The relationship among the state, the collective and the individual should be properly balanced.

(3) The resettlement planning should be developed based on the impact physical

indicators and compensation standards. (4) The development of resettlement plan and the identification of various

compensation standards should be fully consulted with affected persons to ensure they are in line with the interests of affected persons.

(5) Give proper compensation for land acquisition and losses caused. The expenses

for land acquisition shall be paid in full within three months after the land acquisition compensation and resettlement plan is approved. The latest payment date shall not be later than the day the land is used for construction.

(6) Labor forces affected by land acquisition must be resettled to ensure their living

standards and income level will not be reduced because of land acquisition. (7) The labor force resettlement should be based on land and focus on agricultural

production resettlement. Multiple channels and methods should be adopted for resettlement. Meanwhile, based on the local resource characteristics, agricultural structure adjustment should be accelerated, farmland irrigation should be improved, land utilization rate should be boosted and agricultural development momentum should be enhanced.

(8) The resettlement should be integrated with local development, resource

development, economic development and environment protection. The resettlement should proceed from the realities. Practical and viable resettlement measures should be taken for economic rehabilitation and development of the affected persons based on the actual local situation. Necessary conditions should be in place to allow self development of the affected persons.


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5.2 Rehabilitation Task

The main tasks of economic rehabilitations for this Project are mainly to provide economic rehabilitation for those affected by permanent land acquisition and those affected by temporary land occupation. They include providing compensations and replacement to the affected people. According to the investigation, the project construction will require permanent land acquisition of 670.99 mu, including 163.4 mu farmland, 23.48 mu scrubland and 484.11 mu unused land. It involves two towns, seven village committees and 13 village groups. People affected by permanent land acquisition total 107 households and 366 people. The project construction will require temporary land occupation of 1,521.36 mu, including 373.86 mu farmland, 61.28 mu scrubland and 1,086.22 mu unused land. It involves two towns, seven village committees and 13 village committees. People affected by temporary land occupation are 226 households and 765 people.

Table 5.2-1 Towns, villages, village groups and people affected by the Project

No. of affected village groups

Affected by permanent land acquisition

Affected by temporary land occupation

Affected town

Affected village committee

Affected by permanent land acquisition

Affected by temporary land occupation

Household People Household People

Xiliang 1 1 3 11 8 29 Shishi 2 2 15 51 40 137 Yugou 2 2 10 32 25 79 Kongbi 1 1 5 16 15 47 Langbi 5 5 42 144 109 372

Zhengzhuang

Hetou 4 4 6 20 26 90 Dongshan 1 26 92

Duanshi Jinfeng 1 3 11

Total 13 13 107 366 226 765 Note: The village groups affected by permanent land acquisition and temporary land occupation are the same for

the six villages in Zhengzhuang. But they are different for two villages in Duanshi Town. Therefore, there are 14

village groups in total affected by land acquisition and occupation of this project.

5.3 Rehabilitation for Those affected by Permanent Land Acquisition

The permanent land acquisition of the Project will directly affect 107 households


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and 366 people from 13 village groups in 7 villages. Table 5.3-2 provides detailed information on land acquisition scope and number of people affected from these villages.

Table 5.3-1 Economic Rehabilitation Tasks for the Proposed Project

Village committee

Village group

Agricultural population (person)

Total farmland

(mu)

Village Reserve

Farmland (mu)

Acquired farmland area (mu)

Affected Population

No. 2 group 109 613 4 11 Xiliang Village

Total 320 1800 4 11

No.3 group 130 452 9.3 21

No.4 group 142 495 12 30 Shishi Village Total 634 2200 120 21.3 51

No.1 group 142 280 8 19

No.2 group 126 245 6.7 13 Yugou Village Total 410 800 14.7 32

No.3 group 237 825 8 16 Kongbi Village

Total 939 3270 80 8 16

No.3 group 137 450 12.3 23

No.4 group 158 500 10.3 30

No. 5 group 133 430 11.4 28

No.7 group 99 350 13 29

No.8 group 109 380 11 34

Langbi

Village Total 1195 3908 230 58 144

No.4 group 167 470 8.1 20 Hetou Village

Total 1230 3500 8.1 20

No.1 group 151 270 9.6 20 Village

reserve land 200 40 72� Dongshan

Village Total 560 998 160 49.6 92

Total 5,288 16,476 590 163.4 366 Note: � The land acquired from these 72 people are the flexible farmland of the village collective rented by them.

Through impact analysis in Section 3.5, the farmland acquisition will have limited impacts on affected villages and groups. But for affected households, there are certain impacts with land acquisition accounting for 14% of their average land holdings. In order to reduce and mitigate such impacts, and rehabilitate their


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livelihood, the project resettlement preparation team conducted extensive consultations with different villages on economic rehabilitation approaches and use of compensation funds. Based on such consultations, and careful review of land carrying capacity among affected villages after land acquisition, the basic rehabilitation approach is developed. The basic rehabilitation strategy is to provide replacement farmland to the affected people through reallocating village reserve farmland or through village group farmland readjustment, so that their land holding will maintain at before land acquisition levels. The land based rehabilitation will be supplemented with certain amount of cash compensation in order to restore their income and livelihood. The basic details of rehabilitation plan includes following elements:

(1) Provide replacement farmland through land readjustment within village or village groups. According to investigation, among 7 affected villages, four villages (Shishi, Kongbi, Langbi and Dongshan) have a total of 590 mu of village owned reserve farmland, which are more than acquired farmland. They are sufficient to provide replacement farmland for the affected farmers. For 3 villages with no collective reserve farmland, replacement farmland will be provided through redistributing farmland among affected village groups. After readjustment, the affected people could basic regain their previous land holding, ranging from 1.9 mu to 5.6 mu per capita. The actual loss of farmland for affected people will be reduced to only 0.5% to 2.6% of their previous levels. See Table 5.3-2 for detail.

(2) Provide adequate compensations to the affected villages and individuals. According to Qinshui County Land Resources Bureau, the compensations for the acquired farmland are set at 23-27 times of AAOV. According to “Shanxi Land Acquisition Compensation Distribution Method (2005)”, the affected villages will distribute up to 80% of land compensation and resettlement subsidy equally to the qualified village members, and the remaining funds will be kept in the villages or village groups for collective uses. According to the estimation, the 7 affected villages will receive a total of 7.5 million Yuan of land compensation funds, including 4.8 million Yuan for farmland compensation. Xiliang Village could receive a total of 246,200 Yuan, including farmland compensation of 78,900 Yuan. Among them, 60,000 Yuan will be equally distributed among members of No. 2 group, averaging 780 Yuan per person. The remaining part will be kept in the village. In addition, part of scrub land and unused land compensation could also be equally distributed among affected people. Through land readjustment and cash compensation, the limited impacts could be mitigated. Shishi Village could receive a total of 946,100 Yuan, including farmland compensation of 626,600 Yuan. Among them, 512,000 Yuan will be equally distributed among members of whole village, averaging 580 Yuan per person. The remaining part will be kept in the village. Through land readjustment and cash compensation, the limited impacts could be mitigated.

Yugou Village could receive a total of 702,700 Yuan, including farmland compensation of 432,100 Yuan. Among them, 340,000 Yuan will be equally


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distributed among members of No.1 and No. 2 group, averaging 1,280 Yuan per person. The remaining part will be kept in the village. In addition, part of scrub land and unused land compensation or 200,000 Yuan could also be redistributed among whole village, averaging 500 Yuan per person. Through land readjustment and cash compensation, the limited impacts could be mitigated. Kongbi Village could receive a total of 893,000 Yuan, including farmland compensation of 234,600 Yuan. Among them, 700,000 Yuan will be equally distributed among members of whole village, averaging 700 Yuan per person. The remaining part will be kept in the village. Through land readjustment and cash compensation, the limited impacts could be mitigated.

Table 5.3-2 Change of Land Holding After Land Readjustment Among affected

Villages

Acquired Farmland Village

committee Village group

Total Population

Total Farmland

(mu) Area (mu)

Percent of total

(%)

Per Capita

Farmland Before (mu)

Per Capita

Farmland After (mu)

Per Capita

Farmland After LR

(mu) No. 2 group

109 613 4 0.7 5.62 5.59 5.59 Xiliang

Village Total

320 1800 4 0.2 5.63 5.61 5.61

No.3 group

130 452 9.3 2.1 3.48 3.41 3.47

No.4 group

142 495 12 2.4 3.49 3.40 3.47 Shishi

Village Total 634 2200 21.3 1.0 3.47 3.44 3.47

No.1 group

142 280 8 2.9 1.97 1.92 1.92

No.2 group

126 245 6.7 2.7 1.94 1.89 1.89 Yugou

Village Total 410 800 14.7 1.8 1.95 1.92 1.92

No.3 group

237 825 8 1.0 3.48 3.45 3.48 Kongbi

Village Total 939 3270 8 0.2 3.48 3.47 3.48

No.3 group

137 450 12.3 2.7 3.28 3.19 3.27

No.4 group

158 500 10.3 2.1 3.16 3.10 3.27

No. 5 group

133 430 11.4 2.7 3.23 3.15 3.27

No.7 group

99 350 13 3.7 3.54 3.40 3.27

No.8 group

109 380 11 2.9 3.49 3.39 3.39

Langbi

Village Total 1195 3908 58 1.5 3.27 3.22 3.27

Hetou No.4 group

167 470 8.1 1.7 2.81 2.77 2.77


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Village Total 1230 3500 8.1 0.2 2.85 2.84 2.84

No.1 group

151 270 9.6 3.6 1.79 1.72 1.78

Village reserve

land 200 40 20 Dongshan

Village Total 560 1198 49.6 2.5 1.78 1.77 1.78

Langbi Village could receive a total of 2.19 million Yuan, including farmland compensation of 1.71 million Yuan. Among them, 1.8 million are expected be equally distributed among members of whole village, averaging 1,500 Yuan per person. The remaining part will be kept in the village. Through land readjustment and cash compensation, the limited impacts could be mitigated. Hetou Village could receive a total of 368,200 Yuan, including farmland compensation of 237,500 Yuan. Among them, 190,000 Yuan will be equally distributed among No. 4 village group, averaging 1,100 Yuan per person. The remaining part will be kept in the village. Through land readjustment and cash compensation, the limited impacts could be mitigated. Dongshan Village could receive a total of 2.17 million Yuan, including farmland compensation of 1.46 million Yuan. Among them, 1.2 million Yuan will be equally distributed among members of whole village, averaging 2,000 Yuan per person. Through land readjustment and cash compensation, the limited impacts could be mitigated. (3) The affected villages will use collectively kept compensation funds to develop village infrastructures, enhance collective welfare, improve farming and living conditions and increase income for the farmers. According to the estimation, there are 2.4 million Yuan will be kept in 7 village collectives. Each village will use such funds to improve farming conditions, improving cropping structure, increasing yield and developing non farm income generation activities so that income of affected people could increase their incomes and livelihood along with other villages in the project areas.

5.4 Rehabilitation for Those affected by Temporary Land

Occupation

During temporary land use period of the project, the affected villagers can obtain compensation each year for the affected period. After temporary occupation, the affected land areas will be reclaimed and cost of land reclamation has been included


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in the resettlement plan. The land reclaiming fee should be used to restore affected farmland into original conditions before returning to the affected farmers. According to estimation, for temporary land occupation, 7 affected villages with 226 households and 765 individuals will receive a total of 1.34 million Yuan of lost yield compensation, plus 2.87 million Yuan of land reclamation deposit. Since most of involved engineering works are pipeline construction with construction period being only a few months, and since most of construction works will be carried after harvest season or before planting season, the actual impacts on local communities will be very small. In addition, the adopted compensation rate for dry farmland or 1,400 Yuan per mu will be much higher than the gross output value in the project areas. The average gross output value for dryland is only 500 Yuan. In terms of land reclamation rate, it is quite adequate for restoring land into original conditions. Therefore, for temporary land occupation, the livelihood of the affected could be restored and improved.

5.5 Use and supervision of land acquisition compensation

5.5.1 Use of compensation funds The project land acquisition compensation fee will be managed by the most grassroots economic organizations affected by the project. The land acquisition compensation fee shall be managed by village or village group according to the land ownership. The compensation is usually used for economic rehabilitation, surplus labor force resettlement and infrastructure construction. In this project, within the land acquisition compensation, the land compensation fee and resettlement subsidy will be managed by village and village group in a coordinated manner. In addition to economic rehabilitation, the money will be used in the following aspects subject to the agreement of the affected village groups: (1) Invest in village infrastructure development, such as farmland infrastructure

development, rural water and irrigation facility improvement, rural road development and transportation capacity improvement;

(2) Invest in village public welfare undertakings; and (3) Invest in secondary and tertiary industries to increase the income of the village

collective and create job opportunities for surplus rural labor forces. 5.5.2 Compensation fund safeguard measures One month before the land acquisition, the village committee will inform all the villagers about the land acquisition compensation budget and village-level investment plan through public announcement and radio broadcasting. Two weeks before the land acquisition, villager representative meeting should be held to explain and announce the above plan and budget item by item. After the land acquisition begins, every month, the village committee should publicize the special account about the use of land acquisition and resettlement compensation in the village bulletin. If the land acquisition compensation from this project is used to develop secondary and tertiary


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industry projects, the village committee should first conduct thorough and careful research and analysis and confirm that the market conditions are mature. Then, project proposal should be submitted to the town government for review and approval. In addition, the project shall not be implemented until villager meeting of the affected village group discusses and passes the proposal. The village committee will set up a public file on land acquisition compensation and investment plan implementation. The data in this file should be authentic, complete and standardized. Its keeping period should be the same as the account books. If the village committee fails to disclose the financial information or the use of the land acquisition compensation is not sufficiently transparent, after the town or county-level government and other government agencies receive complaints from any villager, they shall demand the village committee to disclose such information within a certain period of time.

6. Resettlement Cost Estimate Since 2007, Qinshui County, where World Bank-funded Coalbed Methane Development and Utilization Project is located, has used bidding, auction and listing methods for land lease sales. At present, the auction or listing price of the land in the project area is about 110,000 Yuan/mu (after the transferor obtains the permanent land use right through bidding, auction or listing, it doesn’t need to pay tax or surcharge). After the land auction money is paid to the land resources authorities, the land resources authorities should pay the affected village collective and households according to the compensation standards identified by the project. Therefore, the resettlement cost estimation of the project is composed of two parts: the first part is the total estimation for land acquisition cost, including the expenses to obtain permanent land use right by bidding, auction or listing, temporary land use compensation fee, compensation for sporadic trees, independent expenses and unexpected expenses. This part totals 83.79 million Yuan (including reclaiming deposit). The second part is the compensation obtained by the affected villages and the affected people, including permanent land acquisition compensation fee, temporary land use compensation fee and compensation for sporadic trees. This part totals11.84 million Yuan. This part is included in the first part or the total estimation of land acquisition cost for the Project.

6.1 Estimate of Total Land Acquisition Cost

Land acquisition cost is estimated at 83.79 million Yuan (including reclaiming deposit), including expenses for obtaining permanent land use right through bidding, auction or listing, temporary land use compensation fee, compensation for sporadic trees, independent expenses and unexpected expenses.

6.1.1 Land acquisition compensation (1) Project permanent land acquisition


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The project’s permanently acquired land is 670.99 mu, including 163.4 mu dry farmland, 23.48 mu scrubland and 484.11 mu unused land. According to the current auction price estimation of 110,000 Yuan/mu in the local area regardless of land use types, the permanent land use right expense of the project totals 73.8089 million Yuan.

(2) Project temporary land use The project’s temporarily used land totals 1,521.36 mu, including 373.86 mu dry farmland, 61.28 mu scrubland and 1,086.22 mu unused land. Based on the compensation standards, the project’s temporary land use compensation fee totals 1.339 million Yuan (excluding reclaiming deposit). See Table 6.1-1 for the expense estimation.

Table 6.1-1 Compensation for the temporary land use item Category Unit Compensation

standard Quantity Total amount

(in 10,000 Yuan)Farmland Mu 1400 373.86 52.34 Land

compensation Unused land Mu 700 1086.22 76.04 Scrubland compensation

Scrubland Mu 900 61.28 5.52

Total 133.90

(3) Compensation for sporadic trees During the project construction, some sporadic trees need to be felled. The preliminary calculation indicates that 22,106 trees are involved. Based on the compensation standards, it is estimated that the sporadic tree compensation of this project is 111,300 Yuan. See Table 6.1-2 for the detailed estimation.

Table 6.1-2 Compensation for sporadic trees in the Project

Tree category Sub-category CompensationStandard (Yuan/tree)

Quantity (tree) Total amount (in 10,000 Yuan)

Mulberry sapling 5 22036 11.018 Mulberry tree Mulberry tree 20 23 0.046 Small miscellaneous Tree

5 26 0.013 Miscellaneous tree

Miscellaneous tree 10 6 0.006 Sapling 10 7 0.007 Persimmon tree Adult tree 50 8 0.04

Total 22,106 11.13 6.1.2 Independent expenses Independent expenses include design and research fee, implementation organization operational expenses, supervision, monitoring and assessment fee, vulnerable group assistance fee and technical training fee.


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(1) Design and research fee: planning, design and research fee for the land acquisition

design work. This fee is listed as 376,300 Yuan as 0.5% of the land acquisition compensation fee.

(2) Implementation organization operational expenses: expenses required to purchase

office building, vehicles and equipments and other expenses necessary for the land acquisition and resettlement organizations to start and implement their work. This fee is listed as 752,600 Yuan as 1 % of the land acquisition compensation fee.

(3) Supervision, monitoring and assessment fee: expenses for the comprehensive

supervision, monitoring and assessment of the land acquisition and resettlement. This fee is listed as 376,300 Yuan as 0.5% of the land acquisition compensation fee.

(4) Vulnerable group assistance fee: expenses to provide help and supports for the

vulnerable groups affected by the project. This fee is listed as 150,500 Yuan as 0.2% of the land acquisition compensation fee.

(5) Technical training fee: expenses to improve the productive skills and education

level of the affected households. This fee is listed as 150,500 Yuan as 0.2% of the land acquisition compensation fee.

According to calculation, the above mentioned independent expenses total 1.8062 million Yuan.

6.1.3 Unexpected expenses The unexpected expenses are 5% of the total land and ground appendage compensation and independent expenses. It is 3.8533 million Yuan.

6.1.4 Reclaiming deposit The reclaiming deposit will be used as the guarantee that the original production conditions of temporarily occupied farmland and scrubland will be rehabilitated before the land is handed over to the land owners. After the project is completed, the reclaiming work will be inspected by the land resources department. If the examination is passed, the deposit will be returned in full. If the enterprise fails to complete reclaiming according to the agreement, the deposit won’t be returned. The temporarily occupied land in this project totals 1,521.36 mu, including 373.86 mu dry farmland, 61.28 mu scrubland and 1,086.22 mu unused land. According to the standards, the reclaiming deposit of this project totals 2.8735 million Yuan.

Table 6.1-3 Compensation for sporadic trees in the Project

Items Reclamation StandardYuan per mu

Total Amount (mu) Total Cost (10,000 Yuan)


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Farmland 3000 373.86 112.16 Unused Land 1500 1086.22 162.93 Scrub Land 2000 61.28 12.26 Total 287.35

6.1.5 Estimation of compensation expenses The total estimation of the land acquisition compensation in this project is 83.7922 million Yuan (not including reclaiming deposit). The whole expense will be included in the overall project estimation. See Table 6.1-4 for the expense estimation.

Table 6.1-4 Total estimation of expenses for land acquisition compensation

Item Sub-item Expense standard

Quantity Total cost (in 10,000 Yuan)

Permanent land use right fee

110,000 Yuan/mu

670.99 mu 7380.89

Temporary land use compensation fee

700~1400 Yuan/mu

1521.36 mu

133.9

Sporadic tree compensation

5~50 Yuan/tree 22106 trees 11.13

1. Land and land appendage expenses

Sub-total 7525.92 Design and research fee

0.5% of item 1 37.63

Operational expenses of the implementation organizations

1% of item 1 75.26

Monitoring and assessment fee

0.5% of item 1 37.63

Vulnerable group assistance fee

0.2% of item 1 15.05

Technical training fee

0.2% of item 1 15.05

2. Independent expenses

Sub-total 180.62 3. Unexpected

expenses 5% of item 1-2 385.33

4.1 Land reclaiming deposit 287.35 4.2 Total (including reclaiming deposit) 8379.22

6.2 Impact compensation expenses

Impact compensation expenses refer to compensations paid directly to the affected parties, which include permanent land acquisition compensation, temporary land use compensation and compensation for sporadic trees, totaling 1184.23 million Yuan.

6.2.1 Permanent land acquisition compensation fee


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The project’s permanently acquired land totals 670.99 mu, including 163.4 mu dry farmland, 23.48 mu scrubland and 484.11 mu unused land. Land compensation, resettlement subsidy and standing crop compensation fee totals 7.52million Yuan based on the preset compensation standards. See Table 6.2-1 for the expense estimation.


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Table 6.2-1 Land compensation in the World Bank-funded Coalbed Methane Development and Utilization Project

Total Dry farmland compensation (in 10,000 Yuan)

Scrubland compensation (in 10,000 Yuan) Unused land compensation (in 10,000 Yuan)

Village Total land acquisition area (mu)

Compensation (in 10,000 Yuan)

Land acquisition area (mu)

Compensation standard (Yuan/mu)



Standard compensation (Yuan/mu)



Standard compensation (Yuan/mu)


Xiliang 42.12 24.62 3.98 19823.7 7.89 1.72 6000 1.03 36.42 4309.5 15.7

Shishi 79.8 94.61 21.26 29472.66 62.66 58.54 5457.9 31.95

Yugou 64.08 70.27 14.66 29472.66 43.21 1.72 6000 1.03 47.7 5457.9 26.03

Kongbi 127.56 89.39 7.96 29472.66 23.46 12.04 6000 7.22 107.56 5457.9 58.7

Langbi 145.44 218.81 57.88 29472.66 170.59 8 6000 4.8 79.56 5457.9 43.42

Hetou 31.99 36.82 8.06 29472.66 23.75 23.93 5457.9 13.06

Dongshan 180 217.35 49.6 29472.66 146.18 130.4 5457.9 71.17

Total 670.99 �� 163.4 477.74 23.48 14.08 484.11 260.03

6.2.2 Temporary land use in the project The temporarily occupied land in the project totals 1,521.36 mu, including 373.861 mu dry farmland, 61.28 mu scrubland and 1,086.22 mu unused land. According to the compensation standards, the compensation for temporary land use totals 1.339 million Yuan (not including reclaiming deposit).

6.2.3 Project compensation for sporadic trees During the project, some sporadic trees will be felled. The estimation is 22,106 trees in total. According to the compensation standards, the compensation for sporadic trees in this project is 111,300 Yuan. 6.2.4 Estimation of impact compensation The estimation of the total impact compensation of this project is 11.84 million Yuan. See Table 6.2-2 for the compensation estimation.

Table 6.2-2 Estimation of total compensation for the affected persons

Item Compensation estimation (in 10,000 Yuan) Permanent land acquisition compensation fee 751.85 Temporary land occupation compensation fee 133.90 Sporadic tree compensation fee 11.13 Land Reclamation Deposit 287.35 Total 1184.23

7. Resettlement plan implementation

7.1 Implementation sequence

A. Land acquisition and compensation process The land acquisition and compensation will be completed through the coordination of related organizations. The specific process is as follows: (1) The project design institute provides a detailed map on land acquisition scope to identify

the land acquisition scope and area. (2) Shanxi Energy CBM Investment Holding Co. Ltd (SECBMIH) Project Management

Office (PMO) applies for planning permit and redline map to the planning authorities and applies to the land administration authorities for land acquisition permit.

(3) Approvals are obtained. (4) Shanxi Energy CBM Investment Holding Co. Ltd (SECBMIH) PMO and Qinshui County

Land Resources Bureau sign overall land acquisition compensation agreement. (5) Qinshui County Land Resources Bureau, Zhengzhuang Town, Duanshi Town and related

villages discuss the land acquisition compensation issues, sign land acquisition compensation agreements and conduct land use procedures;


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(6) Delivery of compensation payment. (7) Complete legal procedures for land acquisition (8) Project officially acquires the land. B. Use of land acquisition compensation fee For villages and village groups receiving land compensation funds, following economic rehabilitation plans, they will distribute a large portion of such funds equally among all village members following land readjustment in the affected villages. The remaining funds will be used by the village to develop production (such as water and irrigation facility improvement), improve rural infrastructure, reclaim waste land, improve low-yield farmland, adjust agricultural structure or invest in other aspects of agricultural production. Generally speaking, in addition to production resettlement, payment to the villagers, land development and infrastructure development, the remaining land acquisition compensation fee will be left in the village collective for public welfare undertakings which can benefit most villagers in the village. C. Economic Rehabilitation The economic rehabilitation will be implemented by the affected village committees. The work process is as follows: (1) Within the village group with resettlement tasks, village wide meeting or village

representative meeting participated by affected people should be held to study and develop the overall economic rehabilitation scheme for land reclamation, land readjustment and land reallocation, and economic development.

(2) The overall land reclaiming, land readjustment and allocation and production resettlement solution should be announced to further collect opinions of the villagers and the affected people in the village group.

(3) Implementation of land readjustment and reallocation. (4) The affected households restore their production and economic income.

7.2 Land acquisition and resettlement schedule

The implementation schedule of the land acquisition and resettlement of the project will be based on the construction schedule of the project. The specific implementation schedule will follow the following principles: (1) Land acquisition should be completed before the engineering work begins; (2) Land adjustment and allocation should be completed at the intervals of crop growth; (3) Labor force resettlement should be completed before land acquisition. According to the overall schedule of the project, the project land acquisition schedule is identified. See Table 7.2-1.


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7.2-1 Land acquisition schedule of the World Bank-funded Coalbed Methane

Development and Utilization Project Item Planned schedule

I. Land acquisition

1. Identification of land acquisition scope October 2007 2. Preparation and investigation of land acquisition

physical indicators October 2007 – December 2007

3. Consultation and identification of land acquisition compensation standards

October 2007 – January 2008

4. Payment of land acquisition compensation fee April 2008 – June 2009

5. Conducting land acquisition procedures Complete by June 2009

II. Production rehabilitation

1. Land reclaiming and improvement 2008 - 2010 2. Consultation on land adjustment and allocation

solution April 2008 – June 2009

3. Land adjustment and allocation Complete by December 2009

4. Labor force resettlement Complete by December 2009

Note: the project construction period is three years (2008 – 2010). Land acquisition compensation and production resettlement work should be completed within the first two years of the project construction.

7.3 Fund flow and payment plan

7.3.1 Fund Flow Process According to the compensation policies and compensation standards provided in the resettlement plan, the Project Resettlement Office will sign “Project land acquisition compensation agreement” with Qinshui County Land Resources Bureau. Qinshui County Land Resources Bureau will sign land acquisition compensation and ground appendage compensation agreements with project affected towns and village committees. The compensation payment should be delivered according to the compensation items, quantities, time and expenses provided in the land acquisition compensation agreements through bank. Project Resettlement Office will pay land acquisition compensation fund to the Qinshui County Land Resources Bureau, and Qinshui County Land Resources Bureau will pay the fund to the Town Resettlement Management Offices. Town Resettlement Management Offices will pay the affected village committees or village groups. The ground appendage compensation should be paid to the owners through village committees.


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7.3.2 Land acquisition compensation payment plan A. Payment principles (1) The compensation related to land acquisition will be included into the total cost estimation

of the project. Land acquisition compensation and other expenses will be paid to the organizations and individuals by the PMO through County Land Resources Bureau.

(2) Land compensation shall be paid one month before land acquisition. (3) To ensure land acquisition compensation and resettlement can be implemented smoothly,

the PMO must set up financial and monitoring organizations at various levels to ensure all the payment can be paid in a timely manner.

B. Organizations financially responsible for the compensation (1) The organizations responsible for land acquisition compensation fund are County

Resettlement Management Office, Land Resources Bureau and special financial organizations of the town and village committees.

(2) The compensation fund shall be disbursed and paid through different levels.

Organizations at different levels should strictly implement financial resettlement and


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auditing system, regularly check and report the capital payment and use status, and raise correction and remedy measures for any unexpected situation to ensure the fund can be disbursed and used according to the plan.

(3) It must be guaranteed that the compensation money shall only be used for land

compensation. No intermediate organizations are allowed to intercept or misappropriate the money.

8. Organization structure

8.1 Organization setup

In order to develop resettlement action plan and guarantee that land acquisition compensation and resettlement work can be conducted smoothly and achieve expected results, during the project implementation process, a top-down organization system should be set up to plan, manage, organize, coordinate, supervise and monitor the resettlement activities. The following organizations are responsible for the land acquisition compensation and resettlement of the project: (1) Project Resettlement Leading Group (2) County Resettlement Office (3) Shanxi Energy CBM Investment Holding Co. Ltd (SECBMIH) Resettlement Office (4) Duanshi Town and Zhengzhuang Town Resettlement Leading Groups and

Resettlement Offices (5) Village committees and village groups (6) Project design organization (7) Outside independent monitoring and assessment organization

8.2 Organization composition and responsibilities

(1)Project Resettlement Leading Group To ensure the smooth development of the resettlement, leaders of Qinshui County People’s Government, County Development and Reform Bureau, Land Resources Bureau, Forestry Bureau, Industry Bureau, Agriculture Bureau, Transportation Bureau, Environmental Protection Bureau, Public Security Bureau, Justice Bureau, Telecommunication Bureau, Zhengzhuang Town, Duanshi Town and Shanxi Energy CBM Investment Holding Co. Ltd (SECBMIH) organized the Project Resettlement Leading Group. The Leading Group’s major responsibilities are to enhance the leadership of the project, develop policies for project resettlement activities and coordinate outside and internal relationship for the project to ensure the project land acquisition compensation and resettlement can go smoothly. The Leading Group will set up an office to deal with daily work. The office will be set within the Farmland Protection Sub-division of the County Land Resources Bureau. (2) County Resettlement Office County Resettlement Office is composed of major officials of the Land Resources Bureau and staff of Farmland Protection Sub-division. As the implementation organization of project land acquisition compensation and resettlement, its major responsibilities include:


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� Participate in project inspection and assist the development of RAP; � Organize public participation and publicize resettlement policies; � Implement, inspect, monitor and record all the resettlement activities within the

county; � Pay and manage land acquisition compensation fund; � Report land acquisition compensation and resettlement situation to the

Resettlement Leading Group; and � Coordinate and solve conflicts and problems in the process.

(3) Project Resettlement Office Project Resettlement Office is composed of major leaders of Shanxi Energy CBM Investment Holding Co. Ltd (SECBMIH) and people experienced in land acquisition compensation and resettlement. As the project resettlement management organization, its major responsibilities are as follow:

� Develop the land acquisition compensation and resettlement policies of the project; � Commission design organization to identify project impact scope, investigate land

acquisition impact data and keep the data; � Apply for land use planning permit and land use construction permit; � Responsible for resettlement training for the major staff of the Resettlement Office; � Organize and coordinate the development and implementation of resettlement action

plan; � Responsible for the management and payment of the fund and supervision of the use

of such fund; � Guide, coordinate and supervise the resettlement activities and resettlement schedule; � Organize and check the internal monitoring activities, and compile land acquisition

compensation and resettlement progress report; and � Identify the external monitoring organization and assist the external monitoring

activities.

(4) Town Resettlement Office The Resettlement Offices of Duanshi Town and Zhengzhuang Town are led by the relevant town leaders, and composed of officials from party and government offices, land administration agency and forestry station, and the major officials from related villages. The major responsibilities of the office are as follows:

� Participate in project impact investigation and assist the compilation of resettlement plan; Organize public participation and publicize resettlement policies;

� Implement, inspect, monitor and record the resettlement activities within its town; � Pay and manage land compensation fund; � Supervise the land acquisition process; � Report land acquisition compensation and resettlement situation to the County

Land Resources Bureau and County Resettlement Office; Coordinate and solve any conflict and problem during the process.

(5) Village committee and village group


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The resettlement working group of the village committees and village groups is composed of the major officials of the village committee and related village groups. Its responsibilities are as follows:

� Participate in social, economic and project impact survey; � Organize the public consultation and publicize land acquisition compensation

policies; � Conduct land adjustment and allocation and organize production development and

other resettlement-related activities; � Fund management and payment; � Report affected people’ opinions and suggestions to the superior authorities; � Report the progress of resettlement; and � Provide help to vulnerable people affected by land acquisition.

(6) Project design institute Project design institute has the following responsibilities:

� Conduct project design; and � Identify land acquisition scope.

(7) External monitoring and evaluation organization The external monitoring organization is temporarily identified as Energy Economics Institute of Shanxi Academy of Social Sciences. It major responsibilities include:

� Observe all the aspects of resettlement plan and its implementation, provide resettlement monitoring and evaluation report to the World Bank through Project Resettlement Office. This responsibility is detailed in the chapter on external monitoring and evaluation;

� Develop resettlement action plan and conduct production resettlement planning; and � Provide technical consulting services to the Project Resettlement Office in terms of

data investigation and processing.

8.3 Staffing

8.3.1 Project leadership and management and resettlement organization To ensure the smooth progress of the resettlement project, Shanxi Energy CBM Investment Holding Co. Ltd (SECBMIH) designated special staff for this work and created a smooth information communication channel from bottom to the top for the land acquisition compensation and resettlement of the project. The special staff includes professional technicians and administrative staff with competent professional qualification, management capability and work experience in land acquisition compensation and resettlement. Qinshui County, Zhengzhuang Town and Duanshi Town also set up special resettlement organizations staffed with professional technicians. See Table 8.3-1 for the staff of project resettlement organizations.


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Table 8.3-1 Resettlement organization staff for the Project organization

Name Organization Current title Roles

Chang Guangzhi

Qinshui County Government County Chief Group Leader

Qin Ju SECBMIH Chairman of the Board

Deputy Director

Duan Beisheng

County Development and Reform Bureau

Bureau Director Executive Deputy Group Director

Zhao Qinsheng

County Land Resources Bureau Bureau Director Executive Deputy Group Director

Jiao Jianyuan

County Forestry Bureau Bureau Director Deputy Group Director

Li Wei County Agriculture Bureau Bureau Director Deputy Group Director

Wang Yongxu

County Environmental Protection Bureau

Bureau Director Deputy Group Director

Duan Guoying

County Transportation Bureau Bureau Director Deputy Group Director

Zhang Yongzhong

Duanshi Town People’s Government

Town Chief Deputy Group Director

Project Resettlement Leading Group

Hao Tianliang

Zhengzhuang Town People’s Government


Zhao Qinsheng

County Land Resources Bureau Bureau Director Director County Resettlement Office Guo

Xinqiang

Farmland Protection Sub-division of County Land Resources Bureau

Sub-division Director

Vice Director

Zhang Shaofang

Shanxi Energy CBM Investment Holding Co. Ltd (SECBMIH)

Deputy General Manager

Director Project Resettlement Office Zhang

Haijun

Shanxi Energy CBM Investment Holding Co. Ltd (SECBMIH)

Director of engineering department

Vice Director

Zhengzhuang Town Resettlement Office

Hao Tianliang


Vice Town Chief

Director

Duanshi Town Resettlement Office

Du Linxu Duanshi Town People’s Government

Vice Town Chief

Director

B. Monitoring and evaluation organization for the resettlement in the project


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SECBMIH as the project owner has commissioned SASS as the resettlement monitoring organization of this project. SASS will provide technical assistance to the Project Resettlement Office, conduct resettlement investigation and investigation of the affected people’s living levels, and implement all the basic monitoring work. Energy Institute of SASS is a research institute, studying energy economy and society. In recent years, the organization has completed the development of two resettlement plan reports for one expressway construction project and one energy project. This institute has rich experience in land acquisition compensation and resettlement design. Since 1999, this institute has begun to conduct resettlement monitoring and evaluation work for World Bank and ADB-funded projects, such as Shanxi Province Qilin Expressway Construction Project and Qinshui Coalfield CBM Development and Use Project. This organization has set up a resettlement monitoring and evaluation working group for World Bank-funded Coalbed Methane Development and Utilization Project and has begun to participate in this work. See Table 8.3-2 for the regular staff working on this project. During the peak time of the project work, more people will be assigned to this work according to actual demand.

Table 8.3-2 Major members in the monitoring and evaluation working group for the Project

Name Title Qualification Role in this project

Wang Hongying

Research fellow

Director of Energy Institute of SASS, research fellow. Responsible for the development of RAP of Qinshui Coalfield Coalbed Methane Development and Utilization Project and its independent monitoring and evaluation.

Project leader

Chen Hong’ai

Research fellow

Director of Sociology Research Office of Energy Institute of SASS. Organized the development of RAP of Qinshui Coalfield Coalbed Methane Development and Utilization Project and its independent monitoring and evaluation. Participated in the independent monitoring and evaluation of Shanxi Qilin Expressway Construction Project.

Group leader

Xia Bing

Research fellow

Director of Industrial Economics Research Office of Energy Institute of SASS. Participated in the development of RAP of Qinshui Coalfield Coalbed Methane Development and Utilization Project and its independent monitoring and evaluation.

Member

Ge Weiqi

Research fellow

Director of Energy Policy Research Office of Energy Institute of SASS. Responsible for the development of RAP of Shanxi Qilin Expressway Construction Project. Participated in the development of RAP of Qinshui Coalfield Coalbed Methane Development and Utilization Project and its independent monitoring and evaluation.

Member


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Zhang Baohua

Research fellow

Director of Transport Economics Research Office of Economics Institute of Shanxi Academy of Social Sciences. Participated in the development of RAP of Qinshui Coalfield Coalbed Methane Development and Utilization Project and its independent monitoring and evaluation.

Member

Zhou Jie

Associate research fellow

Participated in the development of RAP of Qinshui Coalfield Coalbed Methane Development and Utilization Project and its independent monitoring and evaluation.

Member

Li Jianjun

Associate research fellow

Participated in the development of RAP of Qinshui Coalfield Coalbed Methane Development and Utilization Project and its independent monitoring and evaluation.

Member

9. Public participation and consultation mechanism

9.1 Public participation

During the resettlement policy development and resettlement action plan development and implementation, the project has paid and will pay great attention to the public participation and consultation. During resettlement preparation, the Project Resettlement Office fully considered the opinions of the local governments at various levels and the affected people on the resettlement and compensation policies. Under the assistance of local governments, this Resettlement action plan (RAP) has been made. During the project implementation, the resettlement organizations at various levels will continue to encourage the public to participate in the resettlement and economic rehabilitation. 9.1.1 Public participation during the project preparation stage During the feasibility study stage of the project, the PMO always encouraged public participation.

(1) From April to September, 2007, the technicians of the project owner and design organization went to the affected villages to listen to their suggestions and opinions on the project and further compared and confirmed the locations of the plant and stations and the project impact scope.

(2) In September 2007, Qinshui County People’s Government Office organized a meeting

participated by officials from county key agencies, such as County Development and Reform Bureau, Land Resources Bureau, Forestry Bureau, Transportation Bureau, Construction Bureau, Telecommunication Bureau and Power Bureau and the key officials in Zhengzhuang Town and Duanshi Town to fully discuss the land acquisition compensation and resettlement issues.


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(3) To enhance project publicity and further understand the opinions of the public on the project and resettlement, from September to November 2007, the PMO and resettlement action plan compilation people went to project affected towns and villages together to talk to the officials of the towns and villages and the affected people representatives. Through these meetings, the necessity of the project and its resettlement policies were publicized and the public’s opinions on the specific measures of resettlement were further collected. In addition, the survey team also conducted opinion survey in the project areas and collected 40 questionnaires. The survey covered most project affected villages with relatively high representativeness. The result of opinion survey is presented in Table 9.1-1, and public participation process is presented in Table 9.1-2.

According to Table 9.1-1, the survey indicates that all affected people knew the proposed project, and 97.78% of them agreed with construction of proposed projects in their villages, and 73.33% of them believed that these project construction will promote village economic development, and 73.33% agreed that project will bring benefits to local villages.

In terms of opinion on potential land acquisition impacts, according to Table 9.1-2, before the survey, 68.2% of the farmers didn’t know policies on land acquisition compensation and 86.4% didn’t know how to complain if unfairly treated during the land acquisition process. Given this situation, the Project Engineering Department and resettlement action plan compilation people widely conducted public awareness campaign on related laws, regulations and policies. When the survey was completed, all the affected people knew about the land acquisition compensation policies and production resettlement measures of the project and knew where to complain when their legitimate rights were violated. They all hope that the compensation policies and standards of this project can comply with the principles stipulated in documents of the sate and the province. In terms of compensation methods, 47.83% of the affected people want cash compensation and 52.17% want compensation through land allocation.

Table 9.1-1 Results of the affected person survey for the Project

No. Question Multiple choices Survey result (%) (1) Half a year before 26.7

(2) Three months before 35.6 (3) One month before 2.2

1 When did you know about this project?

(4) Just now 35.6 (1) Newspaper 2.3 (2) TV 15.9 (3) Radio 0 (4) Friends and relatives 27.3 (5) Meeting 13.6

2 Where did you know about this project?

(6) Survey personnel 40.9 (1) Agree 97.8 (2) Disagree 0 3

Do you agree on the development of the project in this village?

(3) I don’t know 2.22 4 In your opinion, what is impact of this

project on the environment of your (1) Improve 44.4


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(2) Worsen 26.7 (3) No impact 28.9 (1) Promote development 73.3 (2) Adversely affected 2.2 5

In your opinion, what impacts will this project have on the economic development of the village?

(3) I don’t know 24.4 (1) Yes 73.3 (2) No 4.5 6

Do you think this project will benefit the villagers?

(3) I don’t know 22.2

Table 9.1-2 Public participation survey on the land acquisition and compensation

Question Multiple choices Survey results (%)

(1) Cash compensation 47.8 1. If your land is acquired, which is the compensation way you prefer?

(2) Exchange for land with the same size and quality

52.2

(1) I know them perfectly 4.6 (2) I basically know 11.4 (3) I know a little bit 15.9

2. Do you know state compensation regulations and policies on land acquisition and asset loss?

(4) I have no idea 68.2 (1) Project owner 26.9 (2) Government 19.2 (3) Village officials 50

3. If you know these policies and regulations, where did you get the information?

(4) Relatives, friends or neighbors 3.9 (1) I know 13.6 4. If you are treated unfairly

during land acquisition, do you know where to complain or appeal?

(2) I don’t know 86.4

(4) In the future, the Project Resettlement Office and resettlement organizations at various

levels will take the following measures to enhance resettlement policy publicity and encourage the public to actively engage in the process:

- Publicize resettlement information

To ensure the affected people and local governments fully understand the details of the resettlement plan and the compensation and resettlement programs, the Project Resettlement Office will collect and edit the various resettlement information reviewed by the World Bank and announce such information through public announcement or radio broadcasting in the affected area. Information handbook should be made and given to every affected person. The resettlement information should include all the asset losses, compensation standards, compensation amounts, resettlement policies, rights and interests of the affected persons, opinion feedback and complaint channels.

- Hold meetings This work is arranged before the implementation of land acquisition compensation and resettlement. The public should be informed about the related policies, regulations and


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compensation standards in a continuous manner so the people can know about this project as early as possible and make proper adjustment in their work and life.

- Through TV, radio and newspaper to inform people about the contents, progress and resettlement policies of this project.

9.1.2 Public participation in the implementation of resettlement action plan During the whole implementation process of resettlement action plan, affected people should be encouraged to participate in the whole process. (1) Participation in economic rehabilitation process Land adjustment and allocation will be participated by the original residents in the resettlement area and the displaced people. (2) Participation in land compensation fee use and management The land compensation fee belongs to the village collective. No organization or individual can intercept or appropriate the fee. After the compensation fund is paid to the village collective, the village collective shall manage this fund in a centralized manner to ensure this fund is not appropriated for any other purpose. The fund use must be subject to the discussion and approval of the villager meeting and the villager representatives will supervise its use. (3) Participation in the project construction The project construction will affect the local area more or less. To guarantee the affected people can benefit from project construction, during the project construction, public participation should be encouraged. Under the same conditions, local construction materials and labor forces should be used first.

9.2 Complaining and appealing mechanism and channel

During the development and implementation of the resettlement action plan of this project, affected people are encouraged to participate. However, during actual work, there may be some problems. In order to effectively and quickly solve these problems and ensure smooth progress of the engineering work and land acquisition, in addition to the existing complaining and appealing channels of local governments at various levels, the project has also established a transparent and effective complaining and appealing channel for affected farmer. The specific process is as follows: Stage 1: If an affected person is unhappy with the resettlement plan or its implementation, the person can issue oral or written complaint to the village committee or the Town Resettlement Office. If it is oral complaint, the village should deal with this complaint and make written records. Village committee or Town Resettlement Office should solve the complaint within two weeks. Stage 2:


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If the affected person is unhappy with the result of step 1, he/she can file appeal with the Project Resettlement Office after he receives the decision made in step 1. The Project Resettlement Office should make a decision within two weeks. Stage 3: If the affected person is unhappy with the result of step 2, he/she can file appeal with County Resettlement Leading Group or Land Resources Bureau for administrative arbitration after receiving the decision made by the Project Resettlement Office. The administrative arbitration organization should make the arbitrary decision within 10 days. Stage 4: If the affected person is still unhappy with the arbitrary decision made by the administrative arbitration organization, after receiving the arbitrary decision, he/she can fill lawsuit with civil court according to Civil Procedure Law. The affected people can make complaint or appeal on any aspect of the resettlement, including compensation standards.

The above complaint and appeal channels will be informed to the affected people through meetings and other ways so the affected people can fully understand their right to complaint and appeal. Meanwhile, media tools should be used to communicate the information. Opinions and suggestions on resettlement provided by various people and organizations should be documented and resettlement organizations at various levels should study and address these issues in a timely manner. The organizations addressing the affected people’s complaint and appeal shall not charge any fee. Any expenses incurred due to complaint and appeal should be paid as unexpected expenses by the PMO.

10. Monitoring and Evaluation To ensure the smooth implementation of the resettlement plan and achieve the objective of adequately rehabilitating affected people, the project carry out resettlement monitoring and evaluation in the whole process of land acquisition, demolition and resettlement. The monitoring and evaluation consists of two parts: one is internal resettlement monitoring; and the other is external resettlement monitoring and evaluation.

10.1 Internal monitoring

10.1.1 Purposes and tasks The purposes of internal monitoring is to ensure the resettlement organizations at various levels can function soundly during the implementation of RAP and ensure the legitimate interests of the affected people will not be violated and the engineering work can progress smoothly. The auditing agency of the people’s government of Qinshui County will exercise independent auditing supervision power against related organizations within its jurisdiction. Meanwhile, to ensure all the resettlement organizations comply with the principles and


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schedule set up in the RAP, the related organizations should monitor the work of their subsidiary agencies. 10.1.2 Organization and staff The internal monitoring of the project land acquisition compensation and resettlement work should be organized by the Project Resettlement Office. The Town Resettlement Offices, the villages and village groups will implement the work. To effectively monitor the work from inside, the personnel responsible for this work in the resettlement organizations will participate in the development and implementation of the RAP. They will participate in the internal monitoring during the implementation of the RAP. 10.1.3 Monitoring contents The contents of the internal monitoring include: (1) Payment and use of the funds for land acquisition compensation and rehabilitation; (2) Supports to the vulnerable groups; (3) Land readjustment and reallocation; (4) Quality and quantity of newly reclaimed land; (5) Schedule of the above activities; (6) Implementation of policies and rules in the resettlement plan; (7) Participation and consultation of the affected people during the RAP implementation; (8) Staffing, training, working schedule and operation of the resettlement organizations at

various levels.

10.1.4 Implementation sequence The Project Resettlement Office uses internal monitoring mechanism to check the resettlement activities. The Project Resettlement Office should set up a basic database for land acquisition compensation and resettlement and monitor the whole process of resettlement preparation and implementation. During implementation, the resettlement organizations at all levels should all set up resettlement information database and update it based on the actual implementation. The related information, together with real-time information records and implementation progress, should be given to senior resettlement organization in a timely manner in order to maintain continuous monitoring of resettlement implementation. Within the monitoring mechanism, information tables with preset format should be made to realize continuous information flow from the village level to the Project Resettlement Office. As an integral part of the internal monitoring system, Project Resettlement Office and Town Resettlement Office should both do regular inspection and verification.

10.2 External monitoring and evaluation

10.2.1 Purposes and tasks


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The external monitoring and evaluation is regular monitoring and evaluation on the land acquisition compensation and resettlement by organizations independent from the resettlement organizations. The purpose is to assess whether the objectives of the resettlement are achieved or not. By external monitoring, assessment opinions and suggestions will be given on the whole process of the resettlement and rehabilitation of livelihood of the affected people. The external monitoring will also provide an early alarm system for the project management department and a complaint channel for the affected people. The external monitoring organization will work as the consultant to the Project Resettlement Leading Group and the Project Resettlement Office, track, to monitor and assess the implementation of the resettlement plan, and provide consulting opinions to decision makers. 10.2.2 Major indicators of the monitoring and assessment (1) Progress: including the preparation of land acquisition, implementation of land acquisition

and compensation, and resettlement and rehabilitation. (2) Quality: including to what extent the affected people are happy with the land acquisition

compensation. (3) Compensation fund: including the payment and use of the funds for land acquisition

compensation and resettlement. (4) Affected people: including the household economic situation before and after the project

and economic rehabilitation of the affected people. 10.2.3 Monitoring and evaluation methods Monitoring and evaluation activities are based on the investigation data provided by the investigation design organization and resettlement organization. The monitoring and evaluation should be based on combination of comprehensive investigation and sample survey as well as rapid appraisal. Typical samples (affected household/village/town) should be selected so that they could represent the actual population. Monitoring indicator system targeted at different affected groups should be set up, which will be used to analyze and calculate the survey results. Independent monitoring and evaluation organization shall conduct the following work: (I) Investigation of the affected person living standards Conduct comprehensive baseline survey and collect the baseline data on the working and living levels of the selected samples for this project (the original samples should be selected randomly). The livelihood survey should be done once or twice a year in order to measure the changes of the livelihood among sample households. Regular investigation, random interview and on-side observation should be conducted to obtain necessary data. Then data analysis and assessment should be conducted. The livelihood survey table is composed of indicators for the measurement of working and living levels. The dynamic change of the same indicator before and after land acquisition can reflect the changes of livelihood. Whether the indicator design can actually reflect the change


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of the livelihood will be tested in the baseline investigation and improved according to the actual situation in order to ensure that the collected information can comprehensively and accurately reflect the quantity and quality of the livelihood among affected people. Affected person sample scale: 10% of the affected people affected by land acquisition; and 30% of villages affected by land acquisition. (II) Public consultation Independent monitoring and evaluation organization will participate in public consultation meetings held by villages and towns. By participating in these meetings, the monitoring organization will assess the effects of public participation and the affected people’s coordination with the resettlement plan. During and after the resettlement implementation, these activities will continue. (III) Opinions of the affected people The independent monitoring and evaluation organization will often visit town and village resettlement organizations to know the opinions of the affected people. The independent monitoring and evaluation organization will also meet with disgruntled affected people through formal or informal interview, report the opinions and requirements of the affected people and collective organizations to the relevant authorities in a timely manner, and provide suggestions on how to improve the resettlement work in order to make the resettlement implementation process more effective. (IV) Other responsibilities During resettlement action plan preparation, the independent monitoring and evaluation organization should make suggestions for Project Resettlement Office. During resettlement implementation, the following activities should be monitored: (1) Production resettlement and rehabilitation; (2) Supports to the vulnerable groups; (3) Payment of compensation and compensation amounts; (4) Employment and work arrangement; (5) Technical training; (6) Schedule of the above items; (7) Development of resettlement organization network; (8) Use of the collective land compensation and benefits to the affected people; and (9) Improvement of labor force employment income.

10.2.4 Working steps (1) Monitoring and evaluation work program development; (2) Development of investigation program, investigation tables, typical village and typical household record cards; (3) Design of sample survey plan; (4) Baseline investigation; (5) Setup of monitoring and evaluation information system; (6) Monitoring and investigation:

- Local social and economic investigation; - Monitoring of resettlement implementation organizations; - Investigation of typical villages; - Investigation of typical households;


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- Investigation of other typical targets. (7) Management of monitoring materials and database setup; (8) Comparison analysis; and (9) One monitoring and evaluation report should be developed every year.

11. Report development plan

11.1 Resettlement action plan

In the middle of October 2007, the preliminary draft of Resettlement Action Plan (RAP) of this project was completed. Shanxi Energy CBM Investment Holding Co. Ltd (SECBMIH) submitted it to the World Bank for pre-appraisal. Based on the revision comments and requirements made by resettlement experts of the World Bank, the report was revised and then submitted to the World Bank again for appraisal.

11.2 Resettlement progress report

A. Reporting period From the day the resettlement implementation begins, various resettlement organizations should report the work progress in their respective responsible areas to their superior resettlement organizations at least once three months. Based on the work progress provided by resettlement organizations at various levels, the Project Resettlement Office should provide a Resettlement Progress Report to the World Bank before December 31 every year. The reporting period is once a year. B. Reporting format and contents According to the requirements of the World Bank, the report will be divided into two parts: the first part is text, summarizing the project land acquisition compensation, explaining the progress, problems and difficulties in the implementation, and the measures to solve the difficulties. The second part is a series of tables summarizing key information of resettlement, which should collect the relevant resettlement data for every half a year. The tables will provide a comparison between the actual implementation and the original RAP in terms of land acquisition and compensation of affected areas.

11.3 Independent resettlement monitoring and evaluation report

The independent monitoring and evaluation organization should submit working report within the first month after it begins its work. When the Project Resettlement Office reports to the World Bank on the progress of the resettlement work every year, the reports of independent monitoring and assessment organization should be attached. A. Reporting period According to the requirements of the World Bank, after the resettlement implementation begins, the monitoring and assessment should be done once a year in every October. The resettlement monitoring and assessment report should be submitted by December 31 every


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year. According to the resettlement plan, land acquisition will begin in January 2008. The independent resettlement monitoring and evaluation will be conducted at least three times according to the actual resettlement progress. The monitoring in January 2008 will provide the work program for the monitoring and evaluation, complete the resettlement sample selection, collection of the baseline data of the samples, and set up a database. B. Contents (1) Baseline investigation on the affected people; (2) Progress of land acquisition compensation and affected person resettlement; (3) Production resettlement and rehabilitation; (4) Living standards of the affected people; (5) The payment and use of the funds for land acquisition compensation and production

resettlement; (6) Operation and efficiency assessment of the resettlement implementation organizations; (7) Supports for the vulnerable groups; (8) Existing problems and suggestions.


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Annex 1: Resettlement Information Booklet for Shanxi Coalbed Methane Development and Utilization Project The Shanxi Coalbed Methane Development and Utilization Project is located in Qinshui Coalfield. This location falls into the administrative jurisdiction of Duanshi Town and Zhengzhuang Town of Qinshui County, Jincheng City. The owner of the project is Shanxi Energy CBM Investment Holding Co. Ltd (SECBMIH). I. Background and benefits of the project Coalbed methane (CBM) is usually called “gas”. It is a kind of irregular natural gas kept within the coalbed. Its major component is methane. Coalbed methane is a kind of greenhouse gas but also a kind of new clean energy. It has high heat value and no pollution. As fuel, it can be used in power generation, industrial production and people’s daily life. The project is to drill CBM wells to extract CBM from the ground and then liquidize it to make fuel for households and gas-powered vehicles. Within Qinshui Coalfield, where the project is located, the coal mines are all high-gas mines. At present, most coal mines extract the gas and discharge it into the air continuously during mining operation. Such practice wastes energy and pollutes the environment. This project can use new energy, protect the environment and mitigate the safety hazards of coal mines. Meanwhile, this project can also improve the local income level, create job opportunities, improve local road transport and facilitate local economy. Therefore, the implementation of the project will deliver sound economic and social benefits. II. Project components and schedule 1. Project components The project has three engineering components: (1) CBM exploration and production component; (2) CBM collection and transmission component; and LNG Plant component. The CBM exploration component includes drilling of 350 gas production wells in six administrative villages (Xiliang, Shishi, Yugou, Kongbi, Langbi, Hetou) in Zhengzhuang Town and constructing 57km well access roads in the same areas. The CBM collection and transmission component includes constructing 3 gas collection stations in Xiliang, Kongbi and Langbi respectively, 1 metering and pigging station and 1 wastewater treatment plant in Hetou village, and installing 135 km-long gas collection pipeline and 15.6 km-long gas collection branch pipeline and upgrading 11.7 km-long station access roads within these villages. The LNG Plant component includes constructing one LNG Plant in Dongshan Village of Duanshi Town and 1.43 km-long gas transmission pipeline.


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2. The project implementation term is from 2008 to 2010. See Table 1 for the construction schedule of the components.

Table 1 Construction schedule for Shanxi Coalbed Methane Development and Utilization Project Year CBM

well Gas collection station

Metering and pigging station

Water treatment station

Station access road (km)

Well access road (km)

Gas collection pipeline (km)

Gas recovery pipeline (km)

LNG set

2008 21 1 1 3.4 15.6 8.1 1 2009 150 2 8.3 24.4 57.9 3 2010 179 1 3.4 29.2 69.0

350 3 1 1 11.7 57.0 15.6 135.0

III. Impacts of project land acquisition and occupation 1. Land acquisition and occupation The project will permanently acquire and temporarily occupy some land in six villages in Zhengzhuang Town and two villages in Duanshi Town. The area of permanently acquired land is 670.99 mu, within which, 163.4 mu farmland, 23.48 mu scrubland and 484.11 mu barren land. See Table 2 for the quantity and category of land acquired in the villages. The temporarily occupied land is 1,521.36 mu, within which, 373.86 mu farmland, 61.28 mu scrubland and 1,086.22 mu barren land. The average term of the temporarily occupied land is one year. See Table 3 for the quantity and category of land temporarily occupied.

Table 2 Land acquisition of Shanxi Coalbed Methane Development and Utilization Project

Farmland (mu) Woodland (mu) Village

Total (mu) Subtotal

Irrigated land

Dry farmland

Subtotal Scrubland Economic forest

Barren land (mu)

Xiliang 42.1 4.0 4.0 1.7 1.7 36.4 Shishi 79.8 21.3 21.3 58.5 Yugou 64.1 14.7 14.7 1.7 1.7 47.7 Kongbi 127.6 8.0 8.0 12.0 12.0 107.6 Langbi 145.4 57.9 57.9 8.0 8.0 79.6 Hetou 32.0 8.1 8.1 23.9 Dongshan 180 49.6 49.6 130.4 Total 671.0 163.4 163.4 23.48 23.48 484.11

Table 3 Temporary land occupation for Shanxi Coalbed Methane Development Project Farmland (mu) Woodland (mu) Village Total

(mu) Subtotal Irrigated land

Dry farmland

Subtotal

Economic forest

Scrubland

Barren land (mu)

Xiliang 115.4 12.82 12.82 4.4 4.4 98.2 Shishi 243 67.84 67.84 175.16 Yugou 194.52 44.64 44.64 4.4 4.4 145.5


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Kongbi 395.94 26.14 26.14 31.7 31.7 338.14 Langbi 452.8 183.08 195.08 20.9 20.9 248.86 Hetou 111.1 36.34 24.34 74.76 Jinfeng 8.6 3 3 5.6 Total 1521.36 373.86 373.86 61.28 61.28 1086.22 IV. Compensation for land acquisition and occupation 1. Policy references The land acquisition compensation and resettlement subsidy standards are based on “Methods to Implement ‘Land Administration Law of P.R. China’ in Shanxi Province”, “Compensation standards for forest acquisition and occupation in Shanxi Province” and the annual land production value, land compensation fee, resettlement subsidy and compensation standards of the villages identified by Qinshui County Land Resources Bureau based on “Notice about the opinions on land acquisition compensation of construction projects in Shanxi Province”. 2. Compensation standards (1) See Table 4 for the compensation standards of the permanently acquired farmland and

scrubland of the project.

Table 4 Compensation standards for Land Acquisition for the Proposed Project Farmland or

scrubland compensation fee

Resettlement subsidy Village

Land category

Annual production

value

(Yuan/mu) Times Standard Times Standard

Standing crop fee or tree

compensation fee

Total compensation standard (Yuan/mu)

Farmland 861.9 9 7757.1 13 11204.7 861.9 19823.7 Bush forest

800 5 4000 2 1600 400 6000 Xiliang Barren land

861.9 5 4309.5 0 0 4309.5

Farmland 1091.58 9 9824.22 17 18556.8

6 1091.58 29472.66

Shishi Barren land

1091.58 5 5457.9 0 0 5457.9

Farmland 1091.58 9 9824.22 17 18556.8

6 1091.58 29472.66

Bush forest

800 5 4000 2 1600 400 6000 Yugou

Barren land

1091.58 5 5457.9 0 0 5457.9

Farmland 1091.58 9 9824.22 17 18556.8

6 1091.58 29472.66

Bush forest

800 5 4000 2 1600 400 6000 Kongbi

Barren land

1091.58 5 5457.9 0 0 5457.9

Langbi Farmland 1091.58 9 9824.22 17 18556.8

6 1091.58 29472.66


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Bush forest

800 5 4000 2 1600 400 6000

Barren land

1091.58 5 5457.9 0 0 5457.9

Farmland 1091.58 9 9824.22 17 18556.8

6 1091.58 29472.66

Hetou Barren land

1091.58 5 5457.9 0 0 5457.9

Farmland 1091.58 9 9824.22 17 18556.8

6 1091.58 29472.66

Dongshan Barren

land 1091.58 5 5457.9 0 0 5457.9

(2) The compensation method and standard for temporary land occupation: for grain

farmland, 1,400 Yuan/mu year; for vegetable farmland, 2,800Yuan/mu year; for unused land 700 Yuan/mu year; and for scrubland, 900 Yuan/mu.

Deposit for temporarily occupied land reclaiming: 3,000 Yuan/mu for farmland, 1,500 Yuan/mu of unused land and 2,000 Yuan/mu of scrubland.

(3) The compensation standard for sporadic trees involved in this project: 5 Yuan for every miscellaneous tree with a diameter less than 5 cm (including 5 cm), 10 Yuan for every miscellaneous tree with a diameter more than 5 cm, 10 Yuan for every fruit sapling, 50 Yuan for every fruit tree in early fruiting period, 100 Yuan for every fruit tree in full fruiting period, 5 Yuan for every mulberry sapling, and 20 Yuan for every mulberry tree.

Land appendage, such as standing crop and trees, will be fully compensated to the contractors or owners based on the replacement value and adopted policies.

V. Resettlement method for land acquisition-affected villagers Based on the actual situation, after consultation, the following resettlement methods for the project affected villagers are developed: (1) The main resettlement approach is to provide replacement farmland to affected people

through relocating village owned reserved farmland or redistributing farmland within village groups so that all affected people will maintain their land holding before land acquisition.

(2) Along with land readjustment, all land compensation will be paid directly to affected villages or village groups. According to “Shanxi Method of Distributing Land Compensation and Resettlement Subsidy for Acquired Collectively Owned Land”, resettlement subsidy and 80% of land compensation will be distributed equally among all qualified members in affected villages or village groups to improve their livelihood. The remaining part will be kept in the village collectives.

(3) The village collectives could used the compensation funds to improve village infrastructure, develop collective economy, and increase income and livelihood for the affected farmers.


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VI. Complaint channel The farmers who are not happy with proposed compensations or economic rehabilitation for their acquired farmland can file complaints concerning land acquisition compensation and resettlement. The complaint channel is as follows: If an affected person is unhappy with the resettlement plan or its implementation, the person can issue oral or written complaint to the village committee or the Town Resettlement Office. If it is oral complaint, the village should deal with this complaint and make written records. Village committee or Town Resettlement Office should solve the complaint within two weeks. If the affected person is unhappy with the result of step 1, he/she can file appeal with the Project Resettlement Office after he receives the decision made in step 1. The Project Resettlement Office should make a decision within two weeks. If the affected person is unhappy with the result of step 2, he/she can file appeal with County Resettlement Leading Group or Land Resources Bureau for administrative arbitration after receiving the decision made by the Project Resettlement Office. The administrative arbitration organization should make the arbitrary decision within 10 days. If the affected person is still unhappy with the arbitrary decision made by the administrative arbitration organization, after receiving the arbitrary decision, he/she can fill lawsuit with civil court according to Civil Procedure Law. The affected people can make complaint or appeal on any aspect of the resettlement, including compensation standards. No charges should be collected from affected people by different levels of organizations in complaining process.

Annex 2: Resettlement Action Plan for Linked Component under North China Branch of Petro China

1. Introduction

North China Branch of Petro China (NCBPC) and Shanxi Energy CBM Investment Holding Co. Ltd (SECBMIH) will jointly develop Zhengzhuang Coal Bed Methane Block in Qinshui Coalfield of 49.14 square kilometers. SECBMIH will be responsible for the construction of Shanxi Coalbed Methane Development Project to be funded by the World Bank, which consists of (1) CBM exploration and production; (2) CBM collection and transmission; and (3) LNG Plant three components. CBM collected from 350 wells will first be gathered to three gas collection stations and one metering station in Zhengzuhang Town, which will be transported to LNG plant through a 20 km-long gas trunk pipeline and the Central Gas Treatment Station to be built by NCBPC. The construction of these two components would involve permanent acquisition of 200 mu of land areas including 73 mu of farmland, and temporary occupation of 120 mu of land areas, with


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36 mu of farmland. According to the survey, the permanent land acquisition will affect 22 households and 72 persons in Jinfeng Village; and temporary land occupation would affect 43 households and 142 persons in four villages. Since these two components under NCBPC are directly linked with the proposed World Bank financed Project, according to the requirements of the World Bank, a separate resettlement plan has been prepared by NCBPC for the proposed Central Gas Treatment Station and 20km-long gas pipeline components.

2. Social and economic overview of the project affected areas

2.1 Project County: Qinshui County Qinshui County includes seven townships and seven towns, with 248 administrative villages and six residential committees. By the end of 2006, the total population was 216,000 persons, including 154,400 or 71.5% agricultural population. The non-agricultural population is 616,000, accounting for 28.5%. The actual rural labor force is 72,200 people, accounting for 46.8% of the total agricultural population. There are 26,400 people working in agriculture, forestry, animal-raising and fishery, accounting for 36.57% in the total rural labor force. In 2006, GDP of the county was 4.69 billion Yuan, up by 5.8%, including 174.51 million Yuan from the primary industry, 3.6 billion Yuan from the secondary industry and 911.42 million Yuan from the tertiary industry. Per capita GNP was 21,745 Yuan, higher than provincial average. In 2006, per capita income of the county urban population was 8,156 Yuan, and per capita net income for county rural population was 3,152 Yuan.

Based on poverty line in Shanxi Province with income of 928 Yuan per capita, there is no poverty village in Qinshui County. Nevertheless, there are three poverty villages with an annual per capita income lower than 1,500 and 33 low-income villages with an annual per capita income lower than 2,000 Yuan.

In 2006, the county had 431,685 mu of farmland averaging 2.80 mu per person. Qinshui County is endowed with rich coal resources, ranking No. 1 in Jincheng City. Following recent decades development, it has changed from a traditional pure agricultural county into an industrialized economy with coal playing a dominating role. Table 2.1-1 provides basic social and economic data of Qinshui County and Zhengzhuang and Duanshi Towns. Table 2.1-1 Basic social and economic data for Project County and Towns (2006)

Item Unit Qinshui County Zhengzhuang

Town Duanshi Town

I. Population

1. Total household No. 10,000 7.15 0.54 0.98

2. Total population 10,000 21.60 1.72 2.53

2.1 Agricultural population 10,000 15.44 1.46 2.00

2.2 Natural population growth rate ‰ 4.65 -0.07 1.03


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3. Actual labor forces in the rural area

10,000 7.22 0.81 0.92

II. Geographic area Km2 2655 382.7 257

III. Gross domestic production 100 million

Yuan 46.87 0.92 2.07

1. % of primary industry 100 million

Yuan 1.74/3.7 0.69/75 0.43/21

2. % of secondary industry 100 million

Yuan 36 /76.8 0.17/18.5 1.18/57

3. % of tertiary industry 100 million

Yuan 9.1/19.4 0.06/6.5 0.46/22.1

IV. Per capita GDP Yuan 21700 5339 10192

V. Agricultural production conditions

1. Farmland area 10,000 mu 43.2 5 3.93

2. Grain production volume 10,000 ton 11.51 1.72 1.45

3. Per capital grain ownership kilogram 533 1000 716

4. Per capita farmland area of agricultural population

Mu 2.80 3.43 2.2

VI. Per capita net income of farmers Yuan 3152 3120 3419

2.2 Project Towns: Duanshi and Zhengzhuang Duanshi Town is located in the southeast of Qinshui County. It borders Zhengzhuang Town in the west, Hudi Township in the east, Guxian Township in the north, and Jiafeng Town in the south. Duanshi Town’s total area is 257 square kilometers. By the end of 2006, the town had 26 villages with 9,755 households and a total population of 25,300. Agricultural population accounts for 78.9% and non-agricultural population accounts for 21.1%. The total labor force is 9,166 people, accounting for 36% of the total population. 6,567 people work in agriculture, accounting for 71.64% of the total labor force. In 2006, the town had 39,310 mu farmland and the per capita farmland was 1.9 mu. The total grain production volume is 14,519 tons and the per capita production volume is 716 kilograms. Major agricultural products include wheat, maze, millet, grain sorghum, bean, cotton, oil plant, fruit and vegetables. Duanshi Town’s major industry and commerce include construction material, machinery-processing, transportation, trade and food and beverage with 1,143 township and village enterprises. The total GDP was 206.69 million Yuan, with 79% from industry and service sector. The rural per capita net income was 3,419 Yuan. Zhengzhuang Town is located in the middle of Qinshui, with Duanshi Town to the east, Longgang Town to the west, Suzhuang Township to the north, and Qinchi Town to the south. The town has a total area of 383 square kilometers. By the end of 2006, the town had 26 villages, 5,454 households and 17,200 people. Agricultural population accounts for 84.88% and the non-agricultural population accounts for 15.12%. The total labor force was 8,118 people, accounting for 47.2% of the total population of the town, among whom, 6,183 people worked in agricultural sector, accounting for 76.16% of the total labor force.


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In 2006, the town has 52,153 mu of farmland averaging 3 mu per capita. The grain production volume was 17,218 tons with per capita production as 1,000 kilograms. Its major agricultural produce includes wheat, maze, millet, grain sorghum, potato, cotton, oil plant and fruit. Major industry and commerce include grain processing, agricultural machinery repair, construction material, trade and food and beverage industry. In 2006, the total GDP of the town was 92 million Yuan, with 75% from agriculture sector. The per capita net income for rural population was 3,120 Yuan.

2.3 Basic Condition of Project Affected Villages

The proposed NCBPC Project will affect 11 villages in Duanshi and Zhengzhuang Town, with 5 in Duanshi and 6 in Zhengzhuang. In 2006, there were 2,700 households and 8,430 persons in these 11 villages with 4,100 labors, accounting for 48.6% of total population. About 76.4% of them are working on agricultural sector. In terms of land holdings, there are 21,976 mu of farmland, averaging 2.6 mu per capita. In 2006, the total rural economic incomes from these 11 villages amounted to 45.74 million yuan, with 61.2% from agricultural planting, 11.3% from animal husbandry, 10.3% from industrial activities, 3.6% from construction, 7.5% from transportation, and 6.5% from commerce or retail. The average per capita net income was 3,380 Yuan, ranging from 3,020 Yuan in Jinfeng Village to 3,380 Yuan in Suzhuang Village. More detailed social economic data from project affected villages are listed in Table 2.3-1.

Table 2.3-1 Basic social and economic data on the villages affected by Project under NCBPC Village committee

Yangshu Zhuang

Dongda Xida Zhong xiang

Bali Hetou Suzhuang Lianshan Xitou Huishu Jinfeng

I. Population 1. Total households 180 395 210 475 135 354 218 17 168 130 265 2. Total population 516 1240 630 1536 405 1230 614 506 527 370 856 II. Actual labor forces of

the village 215 680 330 840 264 495 300 180 190 181 425

1. Agriculture 195 500 290 720 241 210 242 120 160 104 350 2. Industry 7 43 16 69 7 130 10 20 8 15 4 3. Construction 3 26 7 13 4 15 8 10 5 12 4 4. Transportation 4 36 5 18 4 50 15 15 4 14 20 5. Service industry 4 32 6 18 6 90 10 15 5 10 32 6. Other non-agricultural

industry 2 43 8 3 2 76 15 0 8 26 15

III. Farmland area (mu) 2325 4050 983 5221 1004 3500 760 1031 1005 338 1759 Including: irrigated land 600 800 200 1150 160 500 400 0 200 210 198 IV. Rural area economic

income (in 10,000 Yuan)

316 810 323 909 264 612 322 241 216 187 374

1. Crop production 150 420 187 541 188 450 120 162 90 150 256 2. Forest 3 8 2 10 0 3 4 3 30 5 16 2. Animal raising 45 110 25 125 38 15 20 39 19 21 50 3. Industry 34 70 50 200 7 65 23 10 5 2 3 4. Construction 35 30 20 52 5 8 0 5 5 2 3 5. Transportation 38 62 25 50 8 25 65 15 32 3 19 6. Service industry 9 55 6 23 10 40 90 7 31 4 24 7. Others 2 55 8 9 8 3 0 0 4 0 3 V. Per capita net income of

farmer (Yuan) 3391 3161 3349 3359 3358 3300 3664 3577 3491 3513 3020


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2.4 Basic information on the work and life of affected households

2.4.1 Sample selection

In order to comprehensively understand the project’s impacts on households, the project RAP compilation group conducted a sample survey within the project affected villages. A total of 15 households affected by land occupation and acquisition were randomly selected as sample households, accounting for 23.1% of the total affected households. The selected samples cover all the villages affected by the permanent land acquisition of the project. The samples are representative and typical. The sample survey can be used as the reference for project impact analysis. See Table 2.4-1 for the specific allocation of sample households.

Table 2.4-1 Allocation of sample affected households affected by the NCBPC Project

Village (Town) Households

affected by land acquisition

Sample household

No. Proportion (%)

Yangshuzhuang Village (Zhengzhuang)

12� 2 16.7

Dongda Village (Zhengzhuang) 15� 3 20.0

Hetuo Village (Zhengzhuang) 10� 2 20.0

Liangshan Village (Duanshi) 6� 2 33.3

Jinfeng Village (Duanshi) 22� 6 27.3

Total 65 15 23.1

2.4.2 Investigation results and result analysis

The project RAP compilation group conducted detailed investigation on the working and living situation of 15 sample households. See Table 2.4-2 for the results. (1) Family structure and employment The 15 sample households have 58 people in total. Every household has 3.87 people in average. The labor forces in the sample households total 29 people. Every household has 1.9 labor forces in average. The average dependents number is 2 people. As for employment structure analysis, most farmers engage in agricultural activities, accounting for 69%. Labor force working in non-agricultural industry accounts for 31% of the total labor force. Within the non-agricultural employment, 33% work for private (township and town) enterprises and 33% work in urban area. These are the major household income sources of local farmers. (2) Agricultural production According to the investigation, the sample households have 189.8 mu contracted farmland (including garden plot) and the per capita farmland (garden plot) is 3.27 mu. In 2006, the annual grain production volume was 47,700 kilogram and per capita grain volume was 822 kg. Because the existing production facilities are not well developed, and the irrigation conditions are not good, the current rural resource development and utilization level is not high. There is still room for further improvement of the farmland productivity.


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Table 2.4-2 Basic information on the sample households in Project Affected Areas Investigation indicator Unit Quantity Investigation indicator Unit Quantity

I. No. of people and labor forces in HH (5) Tractor /tricycle 2

1. Total No. of people in the households Person 58 V. Annual total income Yuan 234650 Including: women Person 28 1. Household income Yuan 216650

2. Total No. of labor forces in HH Person 29 (1) Fixed salary, allowance Yuan 23880

Including: women Person 13 (2) Temporary work income Yuan 5460

3. Average dependents per labor force Person 1 (3) Income of rural migrant workers Yuan 35600

II. Agricultural production (4) Business operation income Yuan 6300

1. Contracted farmland (garden plot) mu 189.8 (5) Agricultural produce income Yuan 133400

2. Per capital farmland (garden plot) mu/Person 3.27 (6) Forest product income Yuan 6100

3. Gross income Yuan 135260 (7) Animal product income Yuan 3260

4. Net income Yuan 107532 (8) By-product income Yuan 1800

5. Net income per capita Yuan/Per. 1854 (9) Government Subsidies Yuan 850

III. Persons working in non-farm sectors Person 9 2. Other income Yuan 18000

% in the total labor forces % 31.0 VI Annual total expenses Yuan 172300

Including: (1) Government employees Person 2 1. Agricultural expense Yuan 27300

(2) Township village enterprise Person 3 (1) Seed purchase Yuan 5300

(3) Transportation workers Person 0 (2) Fertilizer and pesticide Yuan 13400

(4) Food and beverage sector Person 1 (3) Farmland irrigation Yuan 1100

(5) Other non-farm Person 0 (4) Agricultural machine Yuan 6300

(6) Rural migrant workers Person 3 (5) Others Yuan 1200

IV. Durable consumer goods of HH 2. Consumption expense Yuan 150800

1. Home electric appliance (1) Food Yuan 38200

(1) TV set Set 18 (2) Energy Yuan 11800

(2) DVD\VCD Set 3 (3) Housing Yuan 2300

(3) Washing machine Set 8 (4) Clothing Yuan 23500

(4) Refrigerator Set 3 (5) Transport Yuan 5200

(5) Electric fan Set 7 (6) Communication Yuan 8900

(6) Camera Set 1 (7) Education Yuan 18000

(7) Water heater Set 1 (8) entertainment activities Yuan 1300

(8) Microwave Oven Set 1 (9) Healthcare Yuan 12300

2. Transport and communication devices (10) Necessity goods Yuan 2000

(1) Mobile phone 10 (11) Service consumption Yuan 2300

(2) Fixed telephone 13 (12) Money gifts Yuan 15000

(3) Motorcycle 10 3. Other expenses Yuan 4200

(4) Private car 1

VII. Per capita net income Yuan 3575

(3) Household durables and conditions In terms of household durables, the 15 households surveyed have 18 TV sets, 8 washing machines. But very few of them have refrigerator, DVD/VCD or camera. As for transport and communication, they have 10 motorcycles, one private car, three tractors and agricultural


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tricycles, 13 fixed telephones and 10 mobile phones. These are the major transport and communication tools and devices of the local residents. (4) Household income structure According to our survey statistics on economic income of the 15 sample households, in 2006, the annual per capita income of the sample households was 4,046 Yuan, including 2,300 Yuan per capital agricultural produce income, accounting for 57%; 192 Yuan per capita forest product, animal product and by-product income, accounting for 4.8%; and 614 Yuan per capita rural migrant worker income, accounting for 15.2%. Therefore, the income of the residents in the affected area is mainly agricultural income, supplemented by income of rural migrant workers. (5) Household consumption structure According to our investigation on 15 sample households, in 2006, the annual per capita expense of the sample households was 2,971 Yuan, including 471 Yuan per capita agricultural production expense, accounting for 15.8%; 2,428 Yuan per capita daily life consumption, accounting for 81.7%, and 72 Yuan per capita other expenses, accounting for 2.4%. Within the consumption expenses, the per capita food and beverage consumption expense was 659 Yuan, accounting for 27.1 %; per capita clothing expense was 405 Yuan, accounting for 17%; per capita transportation and telecommunication expense was 243 Yuan, accounting for 10%; per capita education and serious disease treatment expense was 522 Yuan, accounting for 21.5%. The household consumption structure indicates that the daily life consumption level of the residents in the project affected area is still low. People’s consumption is basically concentrated in basic consumption. (6) Per capita net income According to the analysis of the economic income and consumption expenses of the sample households, by the end of 2006, the per capita net income of sample households was 3,575 Yuan. The highest per capita net income among the sample households was 10,860 Yuan and the lowest income was 1,320 Yuan. See Table 2.4 -3 for the per capita net income of the sample households.

Table 2.4-3 Per capita net income distribution analysis of the sample households in 2006

Per capita net income Indicator Below 2000

Yuan 2000~3000 Yuan

3000~4500 Yuan

4500~6000 Yuan

6000~8000 Yuan Above 8000 Yuan

1. No. of sample households 2 3 5 3 1 1 2. % in the total households 13.3% 20.0% 33.3% 20.0% 6.7% 6.7%

3. Average household size 3.8 3.6 4.2 4.1 3.8 3.3 4. Average labors per household 1.6 1.5 1.8 2 2.0 2.2 5. Average dependents per labor 1.5 1.2 1.1 1.1 0.7 0.4

6. Average per capita income 1692 2305 3360 4993 6718 9978

3. Project impacts

3.1 Identification of land acquisition scope

The engineering works of the proposed NCBPC Project include two components: (1) Central Treatment Plant; and (2) CBM transmission pipeline component. According to detailed impact survey, both permanent land acquisition and temporary land occupation will be


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involved for construction of these two components. The permanent land acquisition area of the Project refers the area to be occupied after project completion. The temporary land occupation area of the project refers to the land use areas during the construction phase of the Project. The Central Gas Treatment Plant will involve permanent land acquisition of 200 mu of land areas from Jinfeng Village, Duanshi Town. Among them, there are 73 mu of farmland, accounting for 36.5%, 17 mu of scrub land, accounting fro 8.5%; and 110 mu of unused land, accounting for 55%. A total of 22 households and 72 persons will be affected by acquiring 73 mu of farmland. Construction of 20km-long gas transmission pipeline between Zhengzhuang and Central Gas Treatment Plant would involve temporary land occupation from 11 villages in Zhengzhuang and Duanshi. They include Hetou, Yangshuzhuang, Xida, Dongda, Bali, Zhongxiang, Huaizhuang, Lianshan, Suzhuang, Xitou, and Jinfeng. A total of 120 mu of land areas would be temporarily occupied during construction, including 36 mu of farmland, accounting for 30% of total land areas. The remaining 84 mu are unused land, accounting for 70%. A total of 43 households and 142 persons will be affected. See Table 3.1-1 for the breakdown of such impacts.

Table 3.1-1: Land Acquisition and Resettlement Impacts for Proposed Project

Permanent Land Acquisition (mu) Affected People HH

Displaced Business Affected

Trees Components

Total land

Farm land

Scrub Land

Waste Land

HH Persons

1. Central Gas Treatment Plant 200 �� 110 22 72 QRQH� QRQH� QRQH�

2. Gas Transmission Pipelines � � � � �

TOTAL 200 �� 110 22 72 QRQH� QRQH� QRQH�

Temporary Land Occupation (mu) Affected People HH

Displaced Business Affected

Trees Components

Total land

Farm land

Scrub Land

Waste Land

HH Persons

1. Central Gas Treatment Plant

2. Gas Transmission Pipelines 120 36 0 84 43 142 none none none

TOTAL 120 36 0 84 43 142 none none none

3.2 Analysis on the impacts of the project

For Central Gas Treatment Plant, a total of 73 mu of farmland will be acquired from Jinfeng Village, which accounts for 4.2% of total farmland in Jinfeng Village. The land acquisition will affect two village groups: No. 2 and No. 3 groups. For No. 2 group, a total of 34 mu of farmland will be acquired, accounting for 11.6%; for No.3 group, a total of 39 mu of farmland will be acquired, accounting for 11.3%. In general, land acquisition impacts on both Jinfeng Village and No.2 and No.3 groups are limited, which will not cause serious damage to their


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existing farming production system. However, for those directly affected 22 households and 72 persons, the loss of 73 mu of farmland will average about 1 mu of farmland loss per person, accounting for 49% of their current land holding (2.1 mu). Since there are 120 mu village collectively reserved farmland in Jinfeng Village, which could be used to provide replacement farmland to the affected households, the land loss impact could be basically mitigated.

Table 3.2-1: Land Acquisition Impact for Central Gas Treatment Plant under NCBPC Basic Situation Affected People Affected

Village/ Group

Total Household

Total Population

Total Farmland Mu

HH Persons Acquired Farmland

mu

Percent of Total

No.2 42 135 292 10 32 34 11.6 No.3 50 165 346 12 40 39 11.3

Village 265 856 1759 22 72 73 4.2

4. Legal Framework of Compensation Policies

The development and implementation of the RAP for Central Gas Treatment Plant and related gas transmission pipeline will strictly comply with national laws and local regulations and World Bank Policies on Involuntary Resettlement (OP/BP 4.12). The resettlement implementation will strictly follow the related policies and standards identified by the RAP.

4.1 Policy references

The major laws and policies related to the project land acquisition and resettlement of the project include the follow. The provisions of these laws, regulations or policies are included in Chapter 4.2 of the RAP for the World Bank funded Project. (1) World Bank Operational Policies OP/BP 4.12 “Involuntary Resettlement” (2) “Land administration law of P. R. China” (passed in 1986; amended in 1998, and 2004); (3) “Regulations on granting state-owned land use rights by invitation for tenders, auction or

listing” (No. 11 Decree of the Ministry of Land and Resources of P. R. China. Implemented from July 1, 2002)

(4) “State Council’s decision on deepening reform of and tightening up land management” (Document guo-fa (2004) No. 28)

(5) “Implementation methods for ‘Land administration law of P. R. China’ in Shanxi Province” (passed on the 12th meeting of the Standing Committee of the Ninth People’s Congress of Shanxi Province on September 26, 1999)

(6) “Compensation collection standards on forest acquisition and occupation of Shanxi Province” (Developed by Price Control Bureau of Shanxi Province, Forest Bureau of Shanxi Province and Finance Department of Shanxi Province, and implemented from April 1, 1994)

(7) “Allocation methods of land acquisition compensation for the acquisition and occupation of farmers’ collectively-owned land in Shanxi Province” (passed on the 57th executive meeting of the Provincial People’s Government on October 17, 2005 and implemented from December 1st, 2005)

(8) “Notice on opinions about construction project land acquisition compensation in Shanxi Province”, (Document jin-guo-tu-zi-fa (2007) No. 193, issued in May 2007)

4.2 Compensation standards


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4.2.1 Compensation Rates for Permanent Land Acquisition (1) Compensation standards for farmland acquisition According to the Document jin-guo-tu-zi-fa (2007) No. 193 issued by Shanxi Land Resources Department, Qinshui County Land Resources Bureau has divided the villages within its jurisdiction into eight areas based on the location, climate, transport and grain growth pattern of these villages and identified the annual farmland production value and compensation standards for land compensation, resettlement subsidy, and standing crop compensation of the villages in each area. The project affected Jinfeng Village is part of the middle area, with an annual average output value (AAOV) as 1,091.58 Yuan/mu. Their land compensation is 9 times of AAOV, their resettlement subsidy is 17 times of AAOV and their standing crop compensation fee is equivalent to 1 AAOV. The total compensation is 29,472.66 Yuan (1,091.58 x 27 = 29,472.66). (2) Scrub land acquisition compensation standards Scrub land acquisition compensation include land compensation fee, resettlement subsidy, tree compensation and vegetation rehabilitation fee (calculated within related taxes and surcharges). According to “Compensation collection standards on forest acquisition and occupation of Shanxi Province”, for this project, the forest compensation fee is 5 times of the average annual production value, the resettlement subsidy is 2 times of the annual production value, the scrub tree compensation is 400 Yuan/mu. According to the investigation, the forest annual average production value in Qinshui County is 800Yuan/mu. Therefore, the compensation standards for scrub land compensation in the project is set at 6,000 Yuan per mu: 6,000 Yuan/mu (800×5+800×2+400=6000). (3) Compensation standard for unused land acquisition According to Article 27 and Article 28 in Shanxi’s implementation method of “Land administration law of P. R. China”, the compensation for acquisition of unused land is 3 to 6 times of the average annual farmland production value in the three years before the land acquisition. No resettlement subsidy is given for the unused land. The permanent land acquisition compensation standard of the project is 5 times of AAOV or 5,457.9 Yuan/mu (1091.58×5=5457.9). 4.2.2 Compensation Rates for Temporary Land Occupation The temporary land use compensation of the project includes land compensation fee and reclaiming fee. The land compensation is mainly used to compensate all the output or income of the land to the land owner. The reclaiming fee should be used for the reclaiming of temporarily occupied land after the occupation term is over. The land compensation fee shall be decided according to the annual output value of the land and the occupation time. The reclaiming fee shall be decided by the local land resources authorities based on the relevant regulations of the provincial government. The temporary land use of this project involves farmland and unused land. The construction period is one year.


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In Qinshui County, for temporary land occupation due to CBM projects, the compensation standards have been formulated through consultation between the project sponsors and current land users. The adopted compensation rates are 2,800 Yuan/mu year for vegetable plot compensation, 1,400 Yuan/mu year for other farmland, 900 Yuan/mu for srucb land, and 700 Yuan/mu for unused land. The reclaiming deposit is set at 3,000 Yuan/mu for farmland and 1,500 Yuan/mu for non-farmland and Y 2,000 per mu for scrub land.

4.3 Entitlement Matrix of project affected people

See Table 4.3-1 lists entitlement matrix for the affected people.

Table 4.3-1 Entitlement Matrix of the affected people for Project

Types of the impact

Affected object Land acquisition compensation and resettlement policies applicable

Compensation standards

Permanent land acquisition

Owner, contractor and tenant

(1) For the land acquisition, the affected village will obtain land compensation and resettlement subsidy paid by the Project. The compensations are set by Qinshui County Land Resources Bureau in accordance to Shanxi Provincial regulation. The specific amount is presented in next column.

(2) The farmers whose land is acquired will obtain standing crop compensation and ground appendage compensation as well. The village will provide replacement farmland to affected farmers through land readjustment. A small part of compensation will be used by the village collective to improve farming conditions. A large part of compensation will be distributed equally among all village members to be used for improving their farming or engaging in other income generation activities.

1.Farmland : 29472.7(Yuan/mu) 2. Barren land 5457.9 Yuan/mu 3. Scrub Land: 6000 Yuan/mu

Temporary land use

Contractor

The compensation fee for temporary land use includes land compensation and reclaiming deposit. The compensation fee should be identified based on the original annual production value of the land and the occupation period. Qinshui County temporary land use compensation method and annual production value standard have been decided based on the consultation between the land occupation organization and original land user. The existing common compensation standards are listed in the right. The project construction period is one year.

The reclaiming fee should be decided by the local land resource authorities based on the relevant rules issued by the provincial government. The reclaiming deposit is 3,000 Yuan/mu for farmland and 1,500 Yuan/mu for non-farmland and Y 2,000 per mu for scrub land..

Dry farmland: 1400 Yuan/mu; vegetable plot: 2800 Yuan/mu Barren land: 700 Yuan/mu; Scrub land: 900 Yuan/mu

5. Income Restoration and Rehabilitation Plan

For those affected by permanent land acquisition and temporary land occupation, based on consultation with village officials and the affected people, their income restoration and rehabilitation plan has been developed.

5.1 Rehabilitation for Those affected by Permanent Land Acquisition


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According to the investigation, the project construction will require permanent land acquisition of 200 mu of land areas in Jinfeng Village, including 73 mu of farmland. The loss of farmland will directly affect 22 households and 72 persons from 2 village groups in Jinfeng Village. Table 5.1-1 provides detailed information on land acquisition scope and number of people affected from these villages.

Table 5.1-1 Economic Rehabilitation Tasks for the Proposed Project

Village committee

Village group Agricultural population (person)

Total farmland

(mu)

Village Reserve

Farmland (mu)

Acquired farmland area (mu)

Affected Population

No.2 group 135 292 34 34

No.3 group 165 346 39 38 Jinfeng

Village Total 856 1759 120 73 72 Through impact analysis in Section 3.2, although the farmland acquisition will not have significant impacts on affected Jinfeng Village and No. 2 and No. 3 groups, for those directly affected households, there are certain impacts with land acquisition. In order to reduce and mitigate such impacts, and rehabilitate their livelihood, the project resettlement preparation team conducted extensive consultations with village officials and individuals on economic rehabilitation approaches and use of compensation funds. Based on such consultation, and careful review of land carrying capacity among affected village, the basic rehabilitation approach is developed. The basic details of rehabilitation plan includes following elements:

(1) The basic rehabilitation strategy is to provide replacement farmland to the affected people through reallocating part of village reserve farmland so that their land holding will maintain at before land acquisition levels. See Table 5.1-2 for detail.

Table 5.1.-2 Change of Land Holding After Land Readjustment Among affected Villages

Acquired Farmland Village commit

tee

Village group

Total Populati

on

Total Farmland

(mu) Area (mu)

Percent of total (%)

Per Capita Farmland

Before (mu)

Per Capita Farmland After (mu)

Per Capita Farmland After LR

(mu) No.2 group 135 292 34 11.6 2.16 1.91 2.16

No.3 group 165 346 39 11.3 2.10 1.86 2.10 Jinfeng

Village Total 856 1759 73 4.2 2.05 1.97 1.97

(2) The land based rehabilitation will be supplemented with cash compensation in order to restore their income and livelihood. The compensation for the acquired farmland is set at 27 times of average annual output value in the past three years or 29,473 Yuan per mu. According to “Shanxi Land Acquisition Compensation Distribution Method (2005)”, the affected villages will distribute up to 80% of land compensation and resettlement subsidy equally to the qualified village members, and the remaining funds will be kept in the villages


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or village groups for collective uses. According to the estimation, Jinfeng Village will receive a total of 2.85 million Yuan of land compensation funds, including 2.15 million Yuan for farmland compensation, 102,000 Yuan for scrub land compensation, and 600,400 Yuan for unused land compensation. Among them, 1.64 million Yuan will be equally distributed among members of whole village, averaging 1,900 Yuan per person. The remaining part will be kept in the village. Through land readjustment and cash compensation, the limited impacts could be mitigated. (3) Jinfeng villages will use collectively kept compensation funds to develop village infrastructures, enhance collective welfare, improve farming and living conditions and increase income for the farmers. According to the estimation, there are 1.1 million Yuan will be kept in Jinfeng Village, which will be used to improve farming conditions, improving cropping structure, increasing yield and developing non farm income generation activities so that income of affected people could increase their incomes and livelihood along with other villages in the project areas.

5.2 Rehabilitation for Those affected by Temporary Land Occupation

The construction of 20km-long gas pipeline component will temporarily use 120 mu of land areas, which will affect 11 villages. Among them, there are 36 mu of farmland which will affect 43 households and 142 persons from 4 villages. Table 5.2-1 provides detail for such impact. For such impact, the affected villagers can obtain compensation each year for the affected period. The project owner will be responsible to reclaim the affected land areas into original conditions and cost of land reclamation has been included in the resettlement plan. Table 5.2-1: Temporary Land Occupation Impact by Gas Pipeline under NCBPC

Affected People Affected Villages Affected Farmland (mu)

Households Persons

Yangshuzhuang 12 12 40

Dongda 9 15 49

Hetou 11 10 32

Liangshan 4 6 21

Total 36 43 142

According to estimation, for temporary land occupation, 11 affected villages will receive a total of 109,200 Yuan of lost yield compensation, plus 234,000 Yuan of land reclamation deposit. Since most of involved engineering works are pipeline construction with construction period being only a few months, and since most of construction works will be carried after harvest season or before planting season, the actual impacts on local communities will be very small. In addition, the adopted compensation rate for dry farmland or 1,400 Yuan per mu will be much higher than the gross output value in the project areas. The average gross output value for dryland is only 500 Yuan. In terms of land reclamation rate, it is quite adequate for restoring land into original conditions. Therefore, for temporary land occupation, the livelihood of the affected could be restored and improved.

6. Resettlement Cost Estimate


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Since 2007, Qinshui County, where NCBPC Project is located, has used auction method for land lease sales. At present, the auction price of the land in the project area is about 110,000 Yuan/mu. After receiving land auction payment from potential land users, the land resources authorities should pay the affected village collective and households according to the compensation standards identified by the project. Therefore, the resettlement cost estimation of the project is composed of two parts: the first part is the total estimation for land acquisition cost, including the expenses to obtain permanent land use right by auction, temporary land use compensation fee, compensation for attachments, independent expenses and unexpected expenses. This part totals 24 million Yuan (including reclaiming deposit). The second part is the compensation paid to affected villages and individuals, including compensation for permanent land acquisition, temporary land occupation and land reclamation cost. This part totals 3.2 million Yuan, which is included in the total estimation of land acquisition cost for the Project.

6.1 Cost of Permanent Land Acquisition

The project’s permanently acquired land is 200 mu, including 73 mu dry farmland, 17 mu scrubland and 110 mu unused land. According to the current auction price estimation of 110,000 Yuan/mu in the local area regardless of land use types, the permanent land use right expense of the project totals 22 million Yuan. In terms of compensation for permanent land acquisition, based on adopted compensation rates and amount for different types of land areas, the total compensation will be 2.85 million Yuan, see Table 6.1-1 for detail.

Table 6.1-1: Compensation for Permanent Land Acquisition under NCBPC

Land Types Amount mu Compensation Rates

Yuan/mu

Compensation Amount

(10,000 Yuan) Dry Farmland 73 29472.66 215.15 Scrub Land 17 6000 10.2 Unused Land 110 5457.9 60.04 Total 200 285.39

6.2 Cost of Temporary Land Occupation

The project’s temporarily used land totals 120 mu, including 36 mu dry farmland, 84 mu unused land. Based on the compensation standards, the project’s temporary land use compensation fee totals 109,200 Yuan (excluding reclaiming deposit). See Table 6.2-1 for the expense estimation.

Table 6.2-1 Compensation for the temporary land use Item Category Unit Compensation

Standard (Yuan/mu)

Amount (mu)

Total amount (in 10,000 Yuan)

Farmland Mu 1400 36 50,400 Land compensation Unused land Mu 700 84 58,800


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Total 109,200

6.3 Independent expenses Independent expenses include design and research fee, implementation organization operational expenses, supervision, monitoring and assessment fee, vulnerable group assistance fee and technical training fee. (1) Design and research fee: planning, design and research fee for the land acquisition design

work. This fee is listed as 110,500 Yuan as 0.5% of the land acquisition compensation fee. (2) Implementation organization operational expenses: expenses required to purchase office

building, vehicles and equipments and other expenses necessary for the land acquisition and resettlement organizations to start and implement their work. This fee is listed as 221,000 Yuan as 1 % of the land acquisition compensation fee.

(3) Supervision, monitoring and assessment fee: expenses for the comprehensive supervision,

monitoring and assessment of the land acquisition and resettlement. This fee is listed as 110,500 Yuan as 0.5% of the land acquisition compensation fee.

(4) Vulnerable group assistance fee: expenses to provide help and supports for the vulnerable

groups affected by the project. This fee is listed as 44,200 Yuan as 0.2% of the land acquisition compensation fee.

(5) Technical training fee: expenses to improve the productive skills and education level of

the affected households. This fee is listed as 44,200 Yuan as 0.2% of the land acquisition compensation fee.

According to calculation, the above mentioned independent expenses total 530,500 Yuan.

6.4 Unexpected expenses The unexpected expenses are 5% of the total land and ground appendage compensation and independent expenses. It is 1.13 million Yuan.

6..5 Reclaiming deposit The reclaiming deposit will be used as the guarantee that the original production conditions of temporarily occupied farmland and scrubland will be rehabilitated before the land is handed over to the land owners. After the project is completed, the reclaiming work will be inspected by the land resources department. If the examination is passed, the deposit will be returned in full. If the enterprise fails to complete reclaiming according to the agreement, the deposit won’t be returned. The temporarily occupied land in this project totals 120 mu, including 36 mu dry farmland, and 84 mu unused land. According to the standards, the reclaiming deposit of this project totals 234,000 Yuan.

6.6 Estimation of compensation expenses


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The total estimation of the land acquisition compensation in this project is 24 million Yuan (including reclaiming deposit). The whole expense will be included in the overall project estimation. See Table 6.6-1 for the expense estimation. Table 6.6-1Total estimation of expenses for land acquisition compensation

Item Sub-item Expense standard Quantity

Total cost (in 10,000

Yuan) Permanent land use

right fee 110,000 Yuan/mu 200 2200.00

Temporary land use compensation fee

700~1400 Yuan/mu

120 10.92

1. Land and land appendage expenses

Sub-total 2210.92 Design and research

fee 0.5% of item 1 11.05

Operational expenses of the implementation

organizations 1% of item 1 22.11

Monitoring and assessment fee

0.5% of item 1 11.05

Vulnerable group assistance fee

0.2% of item 1 4.42

Technical training fee 0.2% of item 1 4.42

2. Independent expenses

Sub-total 53.05 3. Unexpected

expenses 5% of item 1-2 113.2

4.1 Land reclamation deposit 23.40 4.2 Total (including reclaiming deposit) 2400.57

6.7 Impact compensation expenses

Impact compensation expenses refer to compensations paid directly to the affected parties, which include compensation for permanent land acquisition, compensation for temporary land occupation, and reclamation cost for temporary land occupation, totaling 3.197 million Yuan. See Table 6.7-1 for the compensation estimation. These compensations are included in the total resettlement cost.

Table 6.7-1 Estimation of total compensation for the affected persons

Item Compensation estimation (in 10,000 Yuan)

Permanent land acquisition compensation 285.39

Temporary land occupation compensation fee 10.92

Land Reclamation Deposit 23.4

Total 319.71

7. Organization structure


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7.1 Organization setup

In order to develop resettlement action plan and guarantee that land acquisition compensation and resettlement work can be conducted smoothly and achieve expected results, during the project implementation process, a top-down organization system should be set up to plan, manage, organize, coordinate, supervise and monitor the resettlement activities. They include resettlement leading group, county resettlement office, project resettlement office and towns and village working groups. Their composition and responsibilities are presented in the following.

7.2 Organization composition and responsibilities

(1)Project Resettlement Leading Group To ensure the smooth development of the resettlement, leaders of Qinshui County People’s Government, including leaders of key agencies, and North China Branch of Petro China (NCBPC) organized the Project Resettlement Leading Group. The Leading Group’s major responsibilities are to enhance the leadership of the project, develop policies for project resettlement activities and coordinate outside and internal relationship for the project to ensure the project land acquisition compensation and resettlement can go smoothly. The Leading Group will set up an office to deal with daily work. The office will be set within the Farmland Protection Sub-division of the County Land Resources Bureau. Its main responsibilities include participating in project supervision and the development of RAP; (2) organizing public participation and publicizing resettlement policies; (3) implementing, supervising and monitoring all resettlement activities within the county; (4) delivering compensation funds; and (5) coordinating and solving conflicts and problems in the process.

(2) Project Resettlement Office Project Resettlement Office is composed of major leaders of North China Branch of Petro China (NCBPC) and people experienced in land acquisition compensation and resettlement. As the project resettlement management organization, its major responsibilities are as follow: (1) Develop the land acquisition compensation and resettlement policies of the project; (2) Commission design organization to identify project impact scope, investigate land

acquisition impact data and keep the data; (3) Apply for land use planning permit and land use construction permit; (4) Responsible for resettlement training for the major staff of the Resettlement Office; (5) Organize and coordinate the development and implementation of resettlement action plan; (6) Responsible for the management and payment of the fund and supervision of the use of

such fund; (7) Guide, coordinate and supervise the resettlement activities and resettlement schedule; (8) Organize and check the internal monitoring activities, and compile land acquisition

compensation and resettlement progress report; and (9) Identify the external monitoring organization and assist the external monitoring activities.

(3) Town and village working groups In concerned towns and villages, resettlement working groups will be set to be led by relevant town and village leaders. The major responsibilities of the office are as follows: (1) Participate in project impact investigation and assist the compilation of resettlement plan;


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(2) Organize public participation and publicize resettlement policies; (3) Implement, inspect, monitor and record the resettlement activities within its town; (4) Pay and manage land compensation fund; (5) Supervise the land acquisition process; (6) Report land acquisition compensation and resettlement situation to the county and project

resettlement offices; (7) Coordinate and solve any conflict and problem during the process. (8) Report affected people’ opinions and suggestions to the superior authorities; and provide

help to vulnerable people affected by land acquisition.

7.3 Staffing

7.3.1 Project leadership and management and resettlement organization To ensure the smooth progress of the resettlement project, NCBPC designated special staff for this work and created a smooth information communication channel from bottom to the top for the land acquisition compensation and resettlement of the project. The special staff includes professional technicians and administrative staff with competent professional qualification, management capability and work experience in land acquisition compensation and resettlement. Qinshui County, Zhengzhuang Town and Duanshi Town also set up special resettlement organizations staffed with professional technicians. See Table 7.3-1 for the staff of project resettlement organizations.

Table 7.3-1 Resettlement organization staff for the Project

organization

Name Organization Current title Roles

Chang Guangzhi

Qinshui County Government County Chief Group Leader

Liu Qingchang

NCBPC General Manager

Deputy Director

Duan Beisheng

County Development and Reform Bureau

Bureau Director Executive Deputy Group Director

Zhao Qinsheng

County Land Resources Bureau Bureau Director Executive Deputy Group Director

Jiao Jianyuan

County Forestry Bureau Bureau Director Deputy Group Director

Li Wei County Agriculture Bureau Bureau Director Deputy Group Director

Wang Yongxu

County Environmental Protection Bureau

Bureau Director Deputy Group Director

Duan Guoying

County Transportation Bureau Bureau Director Deputy Group Director

Project Resettlement Leading Group

Zhang Yongzhong

Duanshi Town People’s Government



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Hao Tianliang



Zhao Qinsheng

County Land Resources Bureau Bureau Director Director County Resettlement Office Guo

Xinqiang

Farmland Protection Sub-division of County Land Resources Bureau

Sub-division Director

Vice Director

Yao Tianpeng

NCBPC – Resettlement Office Deputy General Manager

Director Project Resettlement Office Yin

Weiguang NCBPC – Resettlement Office

Director of engineering department

Vice Director

Zhengzhuang Town Resettlement Office

Hao Tianliang


Vice Town Chief

Director

Duanshi Town Resettlement Office

Du Linxu Duanshi Town People’s Government

Vice Town Chief

Director

8. Public participation and consultation mechanism

8.1 Public participation

During the resettlement policy development and resettlement action plan development and implementation, the project has paid and will pay great attention to the public participation and consultation. During resettlement preparation, the Project Resettlement Office fully considered the opinions of the local governments at various levels and the affected people on the resettlement and compensation policies. Under the assistance of local governments, this Resettlement action plan (RAP) has been made. During the project implementation, the resettlement organizations at various levels will continue to encourage the public to participate in the resettlement and economic rehabilitation. 8.1.1 Public participation during the project preparation stage During the feasibility study stage of the project, the PMO always encouraged public participation. (1) From September to November, 2007, the technicians of the project owner and design organization went to the affected villages to listen to their suggestions and opinions on the project and further compared and confirmed the locations of the plant and the transmission pipelines. (2) In the second week of November 2007, the project resettlement plan preparation team under the coordination of Qinshui County People’s Government Office visited Jinfeng Village


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in Duanshi Town to review proposed central gas treatment plan location and also visited the proposed route for proposed gas transmission pipelines. (3)In the third week of November, the project resettlement plan preparation team visited project affected towns and villages organized a series of small discussions with village officials and individuals to discuss the land acquisition impacts, compensation policies, and rehabilitations options and collected different opinions. (4) To enhance project publicity and further understand the opinions of the public on the project and resettlement, the survey team also conducted opinion survey in the project areas and collected 40 questionnaires. The survey covered most project affected villages with relatively high representative.

According to the survey, all affected people knew the proposed project, and 92.6% of them agreed with construction of proposed projects in their villages, and 78.9% of them believed that the project construction will promote village economic development, and 79% agreed that project will bring benefits to local villages.

In terms of opinion on potential land acquisition impacts, before the survey, 59.6% of the farmers didn’t know policies on land acquisition compensation and 76.8% didn’t know how to complain if unfairly treated during the land acquisition process. Given this situation, the Project Engineering Department and resettlement action plan compilation people widely conducted public awareness campaign on related laws, regulations and policies. When the survey was completed, all the affected people knew about the land acquisition compensation policies and production resettlement measures of the project and knew where to complain when their legitimate rights were violated. They all hope that the compensation policies and standards of this project can comply with the principles stipulated in documents of the sate and the province. In terms of compensation methods, 42.1% of the affected people want cash compensation and 56% want compensation through land allocation.

(5) In the future, the Project Resettlement Office and resettlement organizations at various levels will take the following measures to enhance resettlement policy publicity and encourage the public to actively engage in the process:

- Publicize resettlement information

To ensure the affected people and local governments fully understand the details of the resettlement plan and the compensation and resettlement programs, the Project Resettlement Office will collect and edit the various resettlement information reviewed by the World Bank and announce such information through public announcement or radio broadcasting in the affected area. Information handbook should be made and given to every affected person. The resettlement information should include all the asset losses, compensation standards, compensation amounts, resettlement policies, rights and interests of the affected persons, opinion feedback and complaint channels.

- Hold meetings This work is arranged before the implementation of land acquisition compensation and resettlement. The public should be informed about the related policies, regulations and


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compensation standards in a continuous manner so the people can know about this project as early as possible and make proper adjustment in their work and life.

- Through TV, radio and newspaper to inform people about the contents, progress and resettlement policies of this project.

8.1.2 Public participation in the implementation of resettlement action plan During the whole implementation process of resettlement action plan, affected people should be encouraged to participate in the whole process. (1) Participation in economic rehabilitation process Land adjustment and allocation will be participated by the original residents in the resettlement area and the displaced people. (2) Participation in land compensation fee use and management The land compensation fee belongs to the village collective. No organization or individual can intercept or appropriate the fee. After the compensation fund is paid to the village collective, the village collective shall manage this fund in a centralized manner to ensure this fund is not appropriated for any other purpose. The fund use must be subject to the discussion and approval of the villager meeting and the villager representatives will supervise its use. (3) Participation in the project construction The project construction will affect the local area more or less. To guarantee the affected people can benefit from project construction, during the project construction, public participation should be encouraged. Under the same conditions, local construction materials and labor forces should be used first.

8.2 Complaining and appealing mechanism and channel

During the development and implementation of the resettlement action plan of this project, affected people are encouraged to participate. However, during actual work, there may be some problems. In order to effectively and quickly solve these problems and ensure smooth progress of the engineering work and land acquisition, in addition to the existing complaining and appealing channels of local governments at various levels, the project has also established a transparent and effective complaining and appealing channel for affected farmer. The specific process is as follows: Stage 1: If an affected person is unhappy with the resettlement plan or its implementation, the person can issue oral or written complaint to the village committee or the Town Resettlement Office. If it is oral complaint, the village should deal with this complaint and make written records. Village committee or Town Resettlement Office should solve the complaint within two weeks. Stage 2: If the affected person is unhappy with the result of step 1, he/she can file appeal with the Project Resettlement Office after he receives the decision made in step 1. The Project Resettlement Office should make a decision within two weeks.


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Stage 3: If the affected person is unhappy with the result of step 2, he/she can file appeal with County Resettlement Leading Group or Land Resources Bureau for administrative arbitration after receiving the decision made by the Project Resettlement Office. The administrative arbitration organization should make the arbitrary decision within 10 days. Stage 4: If the affected person is still unhappy with the arbitrary decision made by the administrative arbitration organization, after receiving the arbitrary decision, he/she can fill lawsuit with civil court according to Civil Procedure Law. The affected people can make complaint or appeal on any aspect of the resettlement, including compensation standards.

The above complaint and appeal channels will be informed to the affected people through meetings and other ways so the affected people can fully understand their right to complaint and appeal. Meanwhile, media tools should be used to communicate the information. Opinions and suggestions on resettlement provided by various people and organizations should be documented and resettlement organizations at various levels should study and address these issues in a timely manner. The organizations addressing the affected people’s complaint and appeal shall not charge any fee. Any expenses incurred due to complaint and appeal should be paid as unexpected expenses by the PMO.

9. Monitoring and Evaluation

To ensure the smooth implementation of the resettlement plan and achieve the objective of adequately rehabilitating affected people, the project carry out resettlement monitoring and evaluation in the whole process of land acquisition, demolition and resettlement. The monitoring and evaluation consists of two parts: one is internal resettlement monitoring; and the other is external resettlement monitoring and evaluation. The internal monitoring will be carried out by project resettlement office and assisted by local towns and village resettlement working groups. The external resettlement monitoring and evaluation will be carried out by a team from Energy Institute of Academy of Social Science. The objective of monitoring and evaluation is to assess if the RAP is implemented on schedule and within budget and if the goals and principles of the RAP are achieved. Monitoring and evaluation will include, but not be limited to: (1) monitor the progress and effectiveness of RAP implementation; (2) ensure that the living standard of DPs are restored or improved; (3) assess if rehabilitation measures and compensation are sufficient; (4) identify problems or potential problems; and (5) identify methods of responding immediately to mitigate problems. A monitoring and evaluation program will, accordingly, be implemented to (i) record and assess project inputs and the number of persons affected and compensated; and (ii) to confirm that former subsistence levels and living standards are being re-restored and rehabilitated.


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Specifically, monitoring and evaluation will focus on the following aspects of the DPs’ situation and land acquisition process: i) land acquisition and transfer procedures; ii) compensation payments; iii) economic situation prior to and after land acquisition /use; iv) restoration or rehabilitation of income levels. Monitoring and evaluation should include: establishment of socio-economic background data of the DPs prior to actual land acquisition and regular monitoring of their situation for a period of 2 years after land acquisition. In addition, qualitative and quantitative evaluation will be made on the sustainability of at least the pre-project standard of living of the DPs. During implementation of the land acquisition, internal monitoring will be undertaken every six (6) months. Post-land acquisition monitoring will be undertaken internally every 12 months. The independent monitoring agency will undertake external monitoring every six (6) months. The information of monitoring will be collected from three sources: 1) the affected persons; 2) the affected villages and townships; and 3) NCBPC. The external monitoring agency will also carry out a comprehensive socio-economic survey after the completion of implementation to document the standards of living and the conditions of the DPs after land acquisition. A monitoring report will be prepared by the independent monitoring agency, including among other things: i) conclusion of evaluation; ii) major existing and potential problems; and iii) recommendations of mitigation or prevention measures.

10. Resettlement plan implementation

The implementation schedule of land acquisition and resettlement for both Central Gas Treatment Plant and 20km-Long Gas Transmission Pipelines will be based on the construction schedule of the project. The specific implementation schedule will follow the following principles: (1) Land acquisition should be completed before the engineering work begins; (2) Land adjustment and allocation should be completed at the intervals of crop growth; (3) Labor force resettlement should be completed before land acquisition. According to the overall schedule of the project, the project land acquisition schedule is identified. See Table 10.1-1.

Table 10.1-1 Schedule of Land Acquisition and Compensation for the Proposed Project

Item Planned schedule

I. Land acquisition

1. Identification of land acquisition scope October 2007 2. Investigation of land acquisition physical

indicators October 2007 – December 2007

3. Consultation of land compensation standards March 2008 – April 2008

4. Payment of land acquisition compensation fee May 2008

5. Conducting land acquisition procedures June 2008

II. Production rehabilitation

1. Land reclaiming and improvement 2008 – 2009


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2. Consultation on land adjustment and allocation solution

March 2008 – April 2008

3. Land adjustment and allocation Complete by December 2008

4. Labor force resettlement Complete by December 2008

Attachment 1: Resettlement Information Booklet for NCBPC Project The NCBPC Project consists of two components. One is the Central Gas Treatment Plant; and the other is 20km-long gas transmission pipeline. The project is located in Duanshi Town and Zhengzhuang Town of Qinshui County. The owner of the project is NCBPC. The project implementation term is from 2008 to 2009. 1. Land acquisition and occupation The project will permanently acquire and temporarily occupy some land in six villages in Zhengzhuang Town and five villages in Duanshi Town. The area of permanently acquired land is 200 mu, within which, 73 mu farmland, 17 mu scrub land and 110 mu barren land. The temporarily occupied land is 120 mu, within which, 36 mu farmland, and 84 mu barren land. The average term of the temporarily occupied land is one year. 2. Compensation for land acquisition and occupation The land acquisition compensation and resettlement subsidy standards are based on “Methods to Implement ‘Land Administration Law of P.R. China’ in Shanxi Province”, “Compensation standards for forest acquisition and occupation in Shanxi Province” and the annual land production value, land compensation fee, resettlement subsidy and compensation standards of the villages identified by Qinshui County Land Resources Bureau based on “Notice about the opinions on land acquisition compensation of construction projects in Shanxi Province”. (1) Compensation for Permanent Land Acquisition According to these regulations, compensation standards for permanent land acquisition are set at 29,472 Yuan per mu for farmland, 6,000 Yuan per mu for scrub land, and 5,457.9 Yuan per mu for unused land.

Table 1: Compensation standards for Land Acquisition for the Proposed Project

Land Compensation Resettlement

subsidy Village

Land category

Average Annual

Output value (Yuan/mu) Multiple Amount Multiple Amount

Standing crop fee

Total compensation

standard (Yuan/mu)

Farmland 1091.58 9 9824.22 17 18556.86 1091.58 29472.66

Scrub Land 800 5 4000 2 1600 400 6000 Jinfeng

Barren land 1091.58 5 5457.9 0 0 5457.9

(2) Compensation for Temporary Land Occupation


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The compensation method and standard for temporary land occupation: for dry farmland, 1,400 Yuan/mu year; for vegetable farmland, 2,800Yuan/mu year; for non-farmland, 700 Yuan/mu year; and for scrub land, 900 Yuan/mu. Deposit for temporarily occupied land reclaiming: 3,000 Yuan/mu for farmland, 1,500 Yuan/mu of non-farmland and 2,000 Yuan/mu of scrubland.

3. Resettlement method for land acquisition-affected villagers Based on the actual situation, after consultation, the following resettlement methods for the project affected villagers are developed: (1)The main resettlement approach is to provide replacement farmland to affected people through relocating village owned reserved farmland or redistributing farmland within village groups so that all affected people will maintain their land holding before land acquisition. (2) Along with land readjustment, all land compensation will be paid directly to affected villages or village groups. According to “Shanxi Method of Distributing Land Compensation and Resettlement Subsidy for Acquired Collectively Owned Land”, resettlement subsidy and 80% of land compensation will be distributed equally among all qualified members in affected villages or village groups to improve their livelihood. The remaining part will be kept in the village collectives. (3)The village collectives could used the compensation funds to improve village infrastructure, develop collective economy, and increase income and livelihood for the affected farmers. 4. Complaint channel The farmers who are not happy with proposed compensations or economic rehabilitation for their acquired farmland can file complaints concerning land acquisition compensation and resettlement. The complaint channel is as follows: If an affected person is unhappy with the resettlement plan or its implementation, the person can issue oral or written complaint to the village committee or the Town Resettlement Office. If it is oral complaint, the village should deal with this complaint and make written records. Village committee or Town Resettlement Office should solve the complaint within two weeks. If the affected person is unhappy with the result of step 1, he/she can file appeal with the Project Resettlement Office after he receives the decision made in step 1. The Project Resettlement Office should make a decision within two weeks. If the affected person is unhappy with the result of step 2, he/she can file appeal with County Resettlement Leading Group or Land Resources Bureau for administrative arbitration after receiving the decision made by the Project Resettlement Office. The administrative arbitration organization should make the arbitrary decision within 10 days.


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If the affected person is still unhappy with the arbitrary decision made by the administrative arbitration organization, after receiving the arbitrary decision, he/she can fill lawsuit with civil court according to Civil Procedure Law. The affected people can make complaint or appeal on any aspect of the resettlement, including compensation standards. No charges should be collected from affected people by different levels of organizations in complaining process.


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