Social Due Diligence Report Of. Xinghuacun Town Urban Road Network Project

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1 Asian Development Bank Financed Shanxi Small Cities and Towns Development Demonstration Sector Project Social Due Diligence Report Of Xinghuacun Town Urban Road Network Project Xinghuacun Town Project Management Office (PMO) December. 2011

2 CONTENT 1 Project Introduction Resettlement Impact and Implementation Project Resettlement Impact Grave Relocation Implemented in Advance The situation of affected graves The character of the graves Detail Implementation Compensation and Resettlement Compensation Standard Estimation of the Actual Cost for Grave Relocation Resettlement Mode Participation and Consultation Conclusion and Next Measure Conclusion Next Measures... Error! Bookmark not defined. Attachment

3 CONTENT OF TABLES Table 2-1 The Affected Graves List...4 Table 2-2 The types of graves involved...4 Table 3-1 Grave Compensation Standard in Project Area...8 Table 3-2 The Constitution of Actual Cost for Grave Relocation...8 Table 4-1 Public Participation and Information Open Situation Statistics

4 CONTENT OF CHARTS Chart 1-1 Project Scope... 3 Chart 2-1 the registration form of affected situation in Dongbao Village... 5 Chart 2-2 The Grave Relocation Process

5 1 Project Introduction 1. Xinghuacun Town boasts a long history, rich tourist resources and a good industrial base. The town was identified as an economic development zone by the CPC Committee and Administrative Office of Luliang Prefecture in 1992, as one of the 20 key pilot small cities and towns by the provincial structural reform commission in 1995, and one of the 100 pilot towns for small cities and towns development by the provincial government in February Its urban construction process will play an exemplary role for small cities and towns development throughout the province. 2. The Taiyuan-Zhongwei-Yinchuan Railway was completed and open to traffic in January 2011, and a passenger and freight station has been constructed in the northeast of the urban area of Xinghuacun Town. The completion of this major infrastructure project gives the town the potential of developing into an important freight transport hub in the region. The construction of the New Logistics and Storage Zone based on this station has not been started, and there is no supporting infrastructure yet. Therefore, constructing the road network and infrastructure supporting the station and the New Zone has become a prerequisite to taking full advantage of the Taiyuan-Zhongwei-Yinchuan Railway to ensure the outward transport of cargoes from nearby areas and address the rapid growth of traffic. 3. According to the Preliminary Design for the Xinghuacun Town Urban Road Network Construction Project under the ADB-funded Shanxi Small Cities and Towns Development Demonstration Sector Project, the Subproject includes the construction of the access road to the Taiyuan-Zhongwei-Yinchuan Railway Station, the connecting road of National Highway 307 (Xinshi Road), and the road network of the New Logistics and Storage Zone, and is composed of Xinshi, Xinqunan and Xinquzhong Roads, with a total length of about 7.37km. 4. The scope of construction includes the beds and surfaces, bridges and culverts, underground pipelines, lighting and traffic facilities, and landscaping works of the above roads. In particular, Xinshi Road has a full length of 5, m and a boundary line width of 24m; Xinqunan Road has a full length of 1,133.94m and a boundary line width of 25m; Xinquzhong Road has a full length of 1, m and a boundary line width of 20m. 2

6 Legend Yellow: Residential areas Purple: Logistics area Brown: Green area Chart1 Project Scope 3

7 2 Resettlement Impact and Implementation 2.1 Project Resettlement Impact 5. The project will acquire mu land owned by rural collectives of Dongbao Village, Fenghaogou Village, Anshang Village and Wujiayuan Village, including mu arable land, 9.67 mu house plots, 3.9 mu construction land owned by enterprise and public institution. Land acquisition will directly affect 362 households. 7 households with 35 persons will be affected by demolition of 1294 m 2 houses. 6. In April 2011, 24 tombs with 53 coffins were relocated in advance before the RP approved by ADB. A due diligence is conducted by the external agency (NRCR) for this. 2.2 Implementation of Grave Relocation The situation of affected graves 7. Because of land requisition in the project, there were 24 graves affected, 53 coffins in all; including Anshang Village, Fenghaogou Village and Dongbao Village, 11 households, 51 persons affected. Table 2-1 List of Affected Graves Quantity affected Population affected Village Tombs Household Number of Coffin quantities quantities (households) people(person) Anshang Village Fenghaogou Village Dongbao Village Total The character of the graves 8. According to investigation and statistics, the affected graves are all coffins, which are human remains burying; some graves are ancestral graves for at least three generations with a history of 10 to more than 100 years; these are all the Hans graves. Table2-2 The types of graves involved Number Village Type Existence time Nationality 1 Anshang Human remains 30 The Han 2 Anshang Human remains 20 The Han 3 Fenghaogou Human remains The Han 4 Fenghaogou Human remains 10 The Han 5 Fenghaogou Human remains 15 The Han 6 Fenghaogou Human remains The Han 7 Fenghaogou Human remains 20 The Han 8 Fenghaogou Human remains The Han 9 Fenghaogou Human remains The Han 10 Fenghaogou Human remains 25 The Han 4

11 Dongbao Human remains 20-110 The Han 2.2.3 Detail Implementation 9.

8 11 Dongbao Human remains The Han Detail Implementation 9. In early March, 2011, Xinghuacun town ADB Project Office organized Xinghuacun town, Shanxi Province Planning Institution of Town and Country, the affected villages and households to conduct survey for the affected tombs, and reported the results to Fenyang Municipal Government. 10. For quantity of affected coffins, the affected households reported to the villages according to the practical situation. The geomancer 1 confirmed the quantity of coffins as witness during relocation of the tombs, the detailed quantity of coffins was taken as the basis of compensation after the affected people confirming. Chart2-1 the registration form of affected situation in Dongbao Village (2) The Reason for Relocating Graves in Advance 1 Geomancer: the folk wizard who knows the Yin-yang, Eight Trigrams, geomancy, etc. 5

9 11. The graves are local affairs involved ancestors and manito, according to the custom, the relocation must be carried out on the Tomb-sweeping Day (April 5, 2011). The local villagers asked the government to remove the graves in In order to coordinate with the project construction and the local custom, the Xinghuacun Town Government put out a grave relocation announcement on March 27(shown in attachment 1) to inform the owner of affected graves to accomplish the relocation before/on the Tomb-sweeping Day. (3) The detail process of grave relocation 12. In order to respect local custom and culture, with the principle of overall view, comprehensive arrangement and smooth progress of the project, Xinghuacun Government only gave policy guidance on the detailed implementation. In April, the project had not entered into the stage of implementation, and the compensations fund have not been in the PMO s bank account. The affected households raised issues of the compensation, so Xinghuacun Government promised to pay the compensation before the end of At the same time, they specially reported to Fenyang Municipal government for instructions. Through joint efforts, Xinghuacun ADB PMO issued <The distribution suggestion and implementation standard of land requisition compensation for Xinghuacun Town road network project [Taiyuan-Zhongwei (Yinchuan) Railway Fenyang Station connecting line project] >) on May 10,the documents clearly defines the grave relocation compensation will use the standard of FenZhengGao [2010] No.4 and the notice on the relevant expense of grave relocation of Xinghuacun Centralized Liquor Development Zone Leadership Team Office. After that, the Xinghuacun Government announced the standard to the affected households in time and orally promised them the compensation fees would be paid one time before the end of The affected households are satisfied with the compensation standard and accepted the schedule of payment of compensation. 13. The detailed work was implemented by the affected people according to their own needs, they chose new grave location and remove all by themselves, and the government do not make overall resettlement. After knowing the notice, the affected households worked in conjunction with the government actively and finished the remove of 24 affected graves on April 5, 2011(the Tomb-sweeping Day). 14. On December 29,2011, all compensation were paid to the affected households. 6

10 Chart 2-2 The Grave Relocation Process 15. According to the local custom, the grave relocation is a taboo, non family member is not allowed to join it generally. In the process, the local government didn t send staffs to supervise, but assigned the geomancer as the witness to check the actual quantity of graves relocated. 7

11 3.1 Compensation Standard 3 Compensation and Relocation 16. Based on the policy of FenZhengGao [2010] No.4 and the notice about grave relocation expense of Xinghuacun Centralized Liquor Development Zone Leadership Team Office and consultation, the compensation,standard is 600 Yuan per coffin plus 150 Yuan per coffin subsidy for removing. Table 3-1 Grave Compensation Standard in Project Area Project Unit Compensation Standard(Yuan) Subsidy (Yuan) Grave Yuan per coffin Estimation of the Actual Cost for Grave Relocation 17. The relocation of graves is a significant matter whether in Chinese culture or local custom, which involves the whole family, ancestors even luck tendency. According to the survey, based on the level of economic development, the average income of residents and the current price level, the cost of grave relocation roughly includes the expense of buying new location, labor, purchasing artifacts and the others. In order to estimate the cost of local grave relocation more exactly, we ll explain the process of grave relocation in detail: 18. Knowing the notice, the elders gathered the whole family to discuss relocation, and they invited the geomancer to select some new locations for affected families to choose. Among the new locations, the affected families sent people to consult with the current user of the new grave land on the price. If the new location belonged to their relatives, they could use for free or present with tobacco, wine or rice vermicelli as the expense; if not, they had to pay about 300 Yuan. 19. After choosing new location, they needed to invite workers to dig graves and lift coffins; if the old coffin was rotten, they had to prepare a new one; they also had to prepare wreaths, paper money and invite relatives to dinner. 20. According to the process, the average expense of relocating a grave (2 coffins in average) is as follows: Table 3-2 Constitution of Actual Cost for Grave Relocation Constitution Average Cost(Yuan) Percent(%) A-Expense for buying new location B-Expense for labor Geomancer Workers digging graves and lifting coffins Workers repairing new graves C-Expense for buying 8

12 Constitution Average Cost(Yuan) Percent(%) artifacts coffins Wreath, paper money, firecrackers, etc Tombstone D-Other expense Total According to table 3-2, the actual cost for relocation a grave including 2 coffins is 1450 yuan, so we can see that 750 Yuan per coffin could meet the cost. 3.3 Relocation Mode 22. Based on the local situation and custom, the graves affected by the project is small in quantity, the government didn t make a overall arrangement for relocation and site selection, but offered the way of one-time payment of compensation and solving problems by oneself, which also got the agreement of the affected people. The effect showed good as follows: Improving the choosing independence of affected people, they could choose new site by coordinating with neighbors, which induced the cost of buying new sites; The government didn t make overall arrangement, which not only respects the custom, but also extends their choice space, avoiding the dissatisfaction because of united or improper resettlement; The program was fixed on the basis of full consultation with affected people, and it not only reflected the democracy and flexibility of government, but also ensured the ordinary participation of people and protected their lawful interests. 9

13 4 Participation and Consultation 23. Through the whole process of grave relocation, Xinghuacun Town Government and Xinghuacun ADB PMO highly valued the participation and consultation of affected people, they consulted the opinions of them and studied approaches repeatedly, tried to minimize the quantity of graves relocated and reduce the impact. The village committee had organized villager representatives conference for many times to discuss the proposal. Table 4-1 Public Participation and Information Disclosure No. Time Site Xinghuac un Town and affected villages Xinghuac un Town and affected villages Xinghuac un Town and affected villages Xinghuac un Town The affected villages Xinghuac un Town Participated units and persons Xinghuacun Town Government, Xinghuacun ADB PMO, Shanxi Province Planning Instituion of Town and City, the affected villages Xinghuacun Town government, Xinghuacun ADB PMO, Shanxi Province Planning Instituion of Town and City, the affected villages and households Xinghuacun Town Government, the affected villages and households Xinghuacun Town Government, Xinghuacun ADB PMO, the affected households Xinghuacun Town Government, Xinghuacun ADB PMO, the affected villages and households Xinghuacun Town Government, Xinghuacun ADB PMO, the affected households Topic Launching meeting of the object quantity survey of Xinghuacun ADB loaned project The object quantity survey Post the notice of grave relocation Exchanging meeting on the matters of grave relocation Mobilization meeting on the grave relocation Implementatio n of the problem on the grave relocation compensation Discussion Results Each village got the notice to investigate the object quantity and arranged personnel to coordinate with checks. The affected object quantity was checked and reported to Fenyang City. The affected households put forward the problem on compensation, the town government promised to respond as soon as possible. The affected households showed support on the project and agreed to coordinate with the grave relocation actively; they also hoped the problem of compensation could be solved as soon as possible. They explained the compensation policy to the affected households, and promised that the compensation will be 10

14 No. Time Site Participated units and persons Topic Discussion Results paid before the end of 2011, and the affected households shown support. 11

15 5.1 Conclusion 5 Conclusion and Next Measure 24. The proposal of Xinghuacun Town Road Network Transform Project got official reply of Shanxi Province Development and Reform Commission in December, [2008, NO.1458] 25. The environmental impact report of the project got official reply of Shanxi Province Environmental Protection Bureau in April, 2009.[2009,NO.355] 26. The pre-examination of land use of the project got offiical reply of Shanxi Province Department of Land Resources in July, [2009,NO.377] 27. The project has gotten the Proposal of project site selection of Luliang City Construction Bureau in April, The feasibility study report of the project has gotten the reply of Shanxi Province Development and Reform Commission in September, In order to respect the local custom that the tombs need to be relocated on April 5, 2011(the Tomb-sweeping Day), the grave relocation was carried out before the approval of RP from ADB. During the whole process of the implementation, full consultation was conducted. The affected tombs were all relocated well and the implementation was smoothly. All compensation was paid on December 29,

16 Attachment This is the notice of grave relocation. Dear villagers: The connect road to the railway station will affect your family s graves. These graves need to relocated before/on April 5, 2011(the Tomb-sweeping Day). The compensation standard will be the same as the Taiyuan-Zhongwei (Yinchuan) Railway Fenyang Station connecting line project. Attachment 1: Grave Relocation Notice, 27 March

17 Attachment 2:The notice on the grave relocation compensation from Xinghuacun Centralized Liquor Development Zone Leadership Team Office, 30 March

PROJECT PREPARATORY TECHNICAL ASSISTANCE

Appendix 4 11 A. Justification PROJECT PREPARATORY TECHNICAL ASSISTANCE 1. The government has identified the priority areas to be covered under the ensuing loan project and prepared outline technical studies