Page  1
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Resettlement Policy Framework 
IAIL III Project 
 
A. Project 
Introduction 
 
 
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1
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Project objectivity and scope  
Use the World Bank loan to strengthen IAIL3 and focus on the improvement of 
middle and low yield farmland. Stress on infrastructure construction of the water 
facility for small scale, water conservation, farmland and irrigation network, 
agricultural production base for products of advantage and SIDD pilot sites. The total 
amount of World Bank loan is USD200, 000,000. $ 40,800,000 for each following 
province: Hebei, Jiangsu, Shandong, and Henan; $ 30,800,000 for Anhui; $6,000,000 
for SIDD pilot sites and other constructions. The project area covers 5 provinces, 29 
municipalities and 107 counties, including 73 former IAIL2 project counties. 34 
project counties are newly selected. The detailed location sees the chart as follows: 
 
Layout of Project Counties of IAIL 3 
Of which
Province
City
 
No.
IAIL 
II 
new
County 
Irrigation District of 
Project Areas located in 
Kaifeng 3 
3 
 
Kaifeng
 
Qixian
 
Lankao 
Sanyizhai Irrigation 
District
Luoyang 3 
3 
 
Yanshi
 
Yinchuan
 
Songxian 
Luhun Irrigation 
District
Pingdingshan
1
1
Ruzhou 
Luhun Irrigation 
District
Xinyang 3 
 
3
Pingqiao
 
Luoshan
 
Xixian 
Nanwan Irrigation 
District
Nanyang 4 
4 
 
Wancheng
 
Sheqi
 
Xinye
 
Fangcheng 
Yahekou Irrigation 
District
Zhumadian 2  
2
Runan
 
Pingyu 
Suyahu Irrigation 
District
Shangqiu 4 
3 
1 
Minquan
 
Suixian
 
Ningling
 
Liangyuan 
Sanyizhai Irrigation 
District
Henan
 
subtotal 20
13  7   
  
Cangzhou 5 
5  
Wuqiao
 
Dongguang
 
Botou
 
Cangxian
 
Renqiu 
Yinhuang
Irrigation District
Hengshui 4 
4 
 
Taocheng
 
Jizhou
 
Zaoqiang
 
Jingxian 
Yinhuang
Irrigation District
Langfang 4 
 
4
Guangyang
 
Anci
 
Yongqing
 
Wen'an 
Yongding 
River
Irrigation 
District
Irrigation District
Shijiazhuang
4
4
Wuji
 
Xingji
 
Zhengding
 
Jinzhou 
Wells Irrigation 
District
Tangshan 5 
5  
Yutian
 
Zunhua
 
Luan'nan
 
Leting
 
Qian'an 
Jiyunhe Irrigation 
District
Irrigation District
Hebei 
subtotal 22
14  8   
  
RP306 
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Jinan 4 
4 
 
Licheng
 
Changqing
 
Shanghe
 
Zhangqiu 
Jinyangjinyunchuan 
Irrigation 
District
Irrigation District
Zaozhuang 2 2  
Xuecheng
 
Tengzhou 
Panzhuang Irrigation 
District
Irrigation District
Weifang 2 
 
2
Zhucheng
 
Gaomi 
Qiangkuang Irrigation 
District
Irrigation District
Jining 4 
4 
 
Liangshan
 
Qufu
 
Yunzhou
 
Zoucheng 
Wells&canals Wells 
Irrigation 
District
Irrigation District
Tai an 
3 
3 
 
Daiyue
 
Ningyang
 
Feicheng 
Wells&canals Wells 
Irrigation 
District
Irrigation District
Linyi 2 
 
2
Yishui
 
Junan 
Wells&canals Wells 
Irrigation 
District
Irrigation District
Dezhou 3 
3 
 
Qihe
 
Pingyuan
 
Yucheng 
Wells&canals Wells 
Irrigation 
District
Irrigation District
Heze 2 
1 
1 
Dingtao
 
Yuncheng 
Wells&canals Wells 
Irrigation 
District
Irrigation District
Shandong
subtotal 22
17  5   
  
Xuzhou 7 
7 
 
Fengxian
 
Peixian
 
Tongshan
 
Suining
 
Pizhou
 
Xinyi
 
Jiawang 
Huai an 
7 
7 
 
Huai an
 
Lianshui
 
Chuzhou
 
Hongze
 
Xuyu
 
Jinhe
 
Sanhe 
Yancheng 5 
5  
Sheyang
 
Funing
 
Binghai
 
Xiangshui
 
Linhai 
Lianyungang
4
4
Ganyu
 
Donghai
 
Guanyun
 
Guannan 
Suqian 4 
4 
 
Suyu
 
Shuyang
 
Siyang
 
Sihong 
Seaside Irrigation 
District
Irrigation District
Yinan&Yibei Irrigation 
District
Irrigation D
Jiangsu 
subtotal 27
27  
Hefei 3 
2 
1 
Feidong
 
Changfeng
 
Suburb 
Bishihang Irrigation 
District
Bengbu 3 
 
3
Huaiyuan
 
Wuhe
 
Guzhen 
Huai River Irrigation 
District
Irrigation District
Anhui 
Huainan 2 
 
2
Fengtai
 
Panji 
Yongxin River 
Irrigation District
River Irrigation District
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Chuzhou 8 
 
8
Dingyuan
 
Quanjiao
 
Fengyang
 
Mingguang
 
Nanqiao
 
Tianchang
 
Langya
 
Laian
Huai River Irrigation 
District
Irrigation District
subtotal 16
2
14
Total 107
73 34
The project objectives are to improve agricultural production conditions and increase 
agricultural comprehensive production capacity by improving middle and low yield 
farmland. Especially establish water conservation demonstration areas, make the area 
advantage into full play, set up agricultural production base of high quality and high 
efficiency, significantly increase farmers
’
income, accelerate agricultural structure 
adjustment, and elevate agricultural industrialization and farmers’ organizing capacity 
through improving water resources usage efficiency and water production effect. The 
target of the project is to harness farmland for agricultural comprehensive 
development. 
 
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Project Contents 
The main construction components are in 5 aspects: water conservation, agricultural 
standardization and institutional establishment, agricultural ecological environment 
construction and management, institutional development and support, survey design 
and management. According to the construction scale of general project planning, 
505,452 hectares middle and low yield farmland will be transformed as planned; 
399,425 hectares water conservation areas will be developed as well as the 
construction for 294,075- hectare-demonstration farmland of high quality agricultural 
products. Details please refer to the chart below: 
 
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IAIL3 is under implementation based on the IAIL2 experiences. The project selection 
scope, basic criteria, project objective are basically consistent with major construction 
components. They are two projects of same nature. IAIL3 is the continuity of IAIL2. 
As a result, the evaluations of social impacts which have been achieved in the 
implementation of IAIL2 are still the basic project objectivity of IAIL3. During 
IAIL2, no disputes of land requisition and emigration occurred. The problem of 
farmland adjustment has been successfully solved. No any dispute of land adjustment 
emerged in the whole project area. Overall recognition and good comments have been 
obtained from farmers. 
 
The cycles such as project authorization, site selection, project planning and design of 
IAIL3 have drawn the experiences of IAIL2. The difficult problems like avoiding new 
lands requisition caused by permanent and temporary land requisition, non-voluntary 
immigrant placement, and compensation for unripe crops have been fully taken into 
account. Farmers
’
initiative to actively participate in project construction has been 
greatly encouraged in the project areas.  Following World Bank security guarantee 
policy, non-voluntary immigrant affair policy OP4.12 as well as the BP4.12 contents 
in World Bank annex, SOCAD organized talks with local farmers and asked projects 
related farmer households, villager groups, and specialized associations and 
cooperative economic organizations like farmer scientific associations to make 
constructive suggestions about how to eliminate negative impacts of issues like land 
requisition, immigrant placement and compensation for resettlement of farmers to 
avoid possible problems during project planning and design. SOCAD has required 
managements at provincial and county levels to prepare and implement the 
characteristics of each sub-project according to project plan gradually to avoid the 
negative impacts of project implementation.   
 
In addition to adopting all the effective measures to avoid land requisition and 
resettlement disputes, to completely eliminate and lower the negative social effects of 
the project , based on  implementation experiences of IAIL2, SOCAD has made land 
requisition and immigrant placement policy framework for IAIL3 by following the 
World Bank guidelines and related national policy and regulations in order to provide 
sound policy and legal support when dealing with issues like and requisition and 
compensation for immigrants during project implementation, which aims at 
minimizing the negative social impacts. 
 
If there’s any land requisition and resettlement in project sites, this framework will be 
used as the guidelines of preparing and organizing the resettlement. 
 
B. Principles 
and 
Objectives 
 
 
In World Bank assisted projects, final borrowers or component  sponsors are expected 
to take all necessary measures to mitigate adverse social impacts.  The costs 
associated with mitigation of adverse social impacts on project affected people, such 
as relocation of affected persons or restoration of livelihoods, will be met by the 
component  sponsors.  The general guidelines of this RPF are to be followed by all 
components  under the Loan involving involuntary resettlement.  Where adverse 
social impacts are identified, plans for resettlement and rehabilitation (R&R) will 
need to be prepared based on policies and procedures laid out in this framework.   
 
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Every effort will be made to avoid or minimize the need for land acquisition and 
resettlement for any components .  In the unlikely and exceptional event that any of 
the components  under the IAIL III require additional land, houses and other assets 
becomes unavoidable, the component sponsors shall adopt this RPF. 
 
The principle objective of the RPF is to ensure that all Project Affected People (PAP) 
will be compensated for their losses and provided with rehabilitation measures to 
assist them to improve, or at least maintain, their pre-project living standards and 
income earning capacity. 
 
The PAP include the following persons to be identified by the baseline information 
collected:  
(a) 
The persons whose place of business or employment, and/or agricultural land 
is in part or in total affected (permanently or temporarily) by the subprojects;  
(b) 
Persons whose houses are in part or in total affected by the subprojects; 
(c) 
Persons whose business are affected in part or in total (temporarily or 
permanently) by the subprojects; and 
(d) 
Persons whose crops (annual and perennial), trees and fixed assets are affected 
in part or in total by the subprojects. 
 
The principles outlined in the World Bank’s OP/BP 4.12 have been adopted in 
preparing this RPF.  In this regard the following principles and objectives would be 
applied: 
(a) 
Acquisition of land and other assets, and resettlement of people will be 
minimized as much as possible.  Where land acquisition is unavoidable, the 
project will be designed to minimize adverse impact on the (PAP), especially 
the vulnerable groups; 
(b) 
All PAP will be compensated, relocated and rehabilitated, if required, so as to 
improve their standard of living, income earning capacity and production 
capacity, or at least to restore them to pre-Project levels; 
(c) 
All PAP residing in, or cultivating land, or having rights over resources within 
the components  area of the socioeconomic survey are entitled to 
compensation for their losses and/or income rehabilitation.  Lack of legal right 
to the assets lost will not bar the PAP from entitlement to such compensation, 
rehabilitation and relocation measures; 
(d) 
The rehabilitation measures to be provided are (i) compensation at full 
replacement cost for houses and other structures; (ii) compensation for land 
acquisition and resettlement subsidy for the affected villages and farmers; (iii) 
dislocation allowance and transition subsides; (iv) full compensation for crops, 
trees and other similar agricultural products at market value; and (v) other 
assets, and appropriate rehabilitation measures to compensate for loss of 
livelihood; 
(e) 
Replacement house-plots, place of business and agricultural land will be as 
close as possible to the land that was lost, and acceptable to the PAP; 
(f) 
Land-for-land is the preferred option.  Land-for-land may be substituted by 
cash provided that: (i) land is not available in the proximity of the subproject 
area; (ii) PAP willingly accept cash compensation for land and all assets on it; 
and receive full replacement value without any deductions for depreciation; 
and (iii) cash compensation is accompanied by appropriate rehabilitation 
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measures which together with project benefits results in restoration of incomes 
to at least pre-subprojects levels; 
(g) 
The resettlement transition period will be minimized, land-for-land and/or 
cash compensation provided to the PAP completed prior to the expected start-
up
date of works in the respective components . 
(h) 
Resettlement plans will be implemented following consultations with the PAP, 
and will have the endorsement of the PAP; 
(i) 
The previous level of community services and access to resources will be 
maintained or improved after resettlement; 
(j) 
Any acquisition of, or restriction on access to resources owned or manage by 
PAP as common property will be mitigated by arrangements ensuring access 
of
those PAP to equivalent resources on a continuing basis; 
(k) 
Financial and physical resources for resettlement and rehabilitation will be 
made available as and when required; 
(l) 
Resettlement program will include adequate institutional arrangements to 
ensure effective and timely design, planning and implementation of 
resettlement and rehabilitation measures; 
(m) 
Adequate arrangements for effective and timely internal and external 
monitoring will be made on implementation of all resettlement measures; 
(n) 
Wherever possible the components  will ensure that local residents in the 
affected areas benefit from the services and facilities created for, or by, the 
components . 
 
C. 
Process for Preparing and Approving Resettlement Plans 
All components  involving involuntary resettlement will be required to carry out a 
socioeconomic survey to determine the impact on the affected area and the affected 
population.  The survey will determine whether or not the component  would need 
preparation of a Resettlement Plan (RP) or an Abbreviated Resettlement Plan (ARP) 
to offset adverse impacts and access to benefits by the affected communities.  The 
main sequential steps involved in the resettlement approval process are as follows: 
(a) 
Component  sponsor furnishes preliminary information report on the proposed 
component  to the SOCAD, POCADs and the local authorities at the earliest 
possible stage.  The preliminary information report would contain basic 
information on: (i) the proposed location of project; (ii) the total area of land 
required for the physical component , the type of land, current land use and 
possible impacts of land use changes, and the proposed strategy for land 
acquisition; and (iii) the people to be affected by the component  including 
those losing home, land or livelihoods; and those deriving benefits 
(employment, electricity, etc.) from the component ; 
(b) 
SOCAD will, after its review and consultation with the local authorities, 
inform the component  sponsor to prepare a resettlement document according 
to this RPF; 
(c) 
For each component  that may involve resettlement, the Bank requires a 
satisfactory resettlement plan or an abbreviated resettlement plan that is 
consistent with the provision of the policy framework be submitted to the 
Bank for approval before the component  is accepted for Bank financing.  
When the number of persons affected by the component  exceeds 200, a 
resettlement plan shall be prepared.  Where impacts on the entire affected 
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8
population are minor, or fewer than 200 people are affected, an abbreviated 
resettlement plan may be agreed with the borrower.  Impacts are considered 
“minor” if the affected people are not physically displaced and less than 10% 
of
their productive assets are lost; 
(d) 
The component  sponsor prepares the RP or ARP and submits it to the local 
authorities, SOCAD and the World Bank for review/concurrence; 
(e) 
The reviewers shall verify the adequacy of the report in light of policies, 
principles and procedures set out in this RPF, and convey the decision to the 
component  sponsor; 
(f) 
After obtaining concurrence of the World Bank, the component  sponsor 
executes the RP or ARP  which would also contain terms and conditions 
related to implementation of the plans agreed in the RPF.  
 
The ARP for each component  will be prepared by the respective component  sponsor 
in accordance with the provisions of this RPF.  The ARP includes the following 
contents:  
(a) a census survey of displaced persons and valuation of assets;  
(b) description of compensation and other resettlement assistance to be provided; 
(c) consultations with displaced people about acceptable alternatives; 
(d) institutional responsibility for implementation and procedures for grievance 
redress;  
(e) arrangements for monitoring and implementation; and  
(f) a timetable and budget. 
 
The RP to be submitted thereafter needs not include the policy principles, 
entitlements, and eligibility criteria, organizational arrangements, arrangements for 
monitoring and evaluation, the framework for participation, and mechanisms for 
grievance redress set forth in the resettlement policy framework. The component -
specific resettlement plan needs to include baseline census and socioeconomic survey 
information; specific compensation rates and standards; policy entitlements related to 
any additional impacts identified through the census or survey; description of 
resettlement sites and programs for improvement or restoration of livelihoods and 
standards of living; implementation schedule for resettlement activities; and detailed 
cost estimate.  The RP includes the following contents:  
(a)  description of the component; 
(b)  potential impacts; 
(c)  socioeconomic studies and baseline census; 
(d)  additional policy entitlements;   
(e)  compensation rates for losses; 
(f)  resettlement measures; 
(g)  site selection, site preparation, and relocation; 
(h)  housing, infrastructure, and social services; 
(i)  implementation schedule; 
(j)  costs and budget 
 
D. 
Estimated Possible Resettlement/Land Acquisition and Prepared Ways to 
Avoid the Possibility 
 
The project will mainly invest for on-farm irrigation in water resources component, 
agro-technology and production service systems in agriculture, and shelter belts in 
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9
forestry. No main systems will be built. All subprojects will be applied for from 
bottom up, while selecting optimum from top down. Local farmers are fully aware of , 
and warmly demanding, the subprojects to be designed and implemented in their 
areas. 
 
According to previous experience accumulated locally, the following measures are 
determined by each POCAD/COCAD to avoid any land acquisition:  
 
(a) 
Upgrade the quality of the lower level irrigation systems to the specified 
standard by dredging and repairing the existed branch canals, laterals, and 
ditches; 
(b) 
Increase arable land by reducing canals/ditches length with straight instead of 
curved on-farm works. In case that some canal realignment need land 
adjustment, the farmland of each household affected will be readjusted during 
land leveling to ensure no real loss of any farmland area for all farm 
households concerned;  
(c) 
Land leveling and dredging should be finished between autumn harvest and 
winter planting seasons. A few that cannot be finished in time should inform 
in advance for the cropping rotation to reduce damage. For subproject that 
cannot be finished between crop seasons, no crop should be planted in the 
proposed construction areas so as to avoid any waste of crops;  
(d) 
Minimize land use with optimum canal design and seepage control (lining); 
(e) 
Strengthen monitoring on project land use and impact. In view of temporary 
land occupation, if planting crops are suspended for the purpose of 
construction, concerned farmers will be compensated for the loss of cropping 
opportunity (at price of green crops);  
(f) 
All the buildings, stores, drying yards, etc. under the project component of 
agricultural technical extension will be reconstructed on their old bases or/and 
in their original demarcated compounds, and  
(g) 
One of the project components is improvement of canals with lining and 
pipeline construction under ground. That means, the large cross-section areas 
caused by the original earth-made schemes will be reduced after lining and 
more land will be saved for cropping after the project.  
(h)       The country roads at two levels, field roads and production road under project 
planning and design will be upgraded based on the original dirt roads, the 
construction of the sand-break forests in field will be to restore and improve original 
forest network. Land for seedling nursery and reconstruction of some infrastructure 
projects, service supporting projects will be strictly  limited on their originally 
existed bases. No new land acquisition will be allowed. 
 
On the whole, it is foreseen that the impacts from these components  are minor.  
During the project implementation, new proposals under other components might be 
made. In that case, any Resettlement Plan prepared before the project appraisal then 
need to be revised and updated.    
 
Overall evaluation of IAIL3 shows that farmers
’
lands have been increased instead of 
any decrease. At same time, farmers can more benefit from the improvement of the 
quality of cultivated lands. At present, the strictly implemented national policy to 
protect cultivated land -‘The Basic Cultivated Land Protection Law’ has provided 
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adequate policy and legal support to eliminate the negative social impacts caused by 
problems such as land requisition, immigrant resettlements in the project areas. 
 
E. Eligibility 
Criteria 
 
 
 
The entitlement policy aims to enable PAP to replace the assets they have lost on 
account of the project, to recover and to improve upon their pre-component  living 
standards within the shortest possible time.  In general, the resettlement & 
rehabilitation (R&R) package would consist of (a) provision for replacement assets or 
its cash equivalent, where replacement is not feasible; (b) rehabilitation grants to 
compensate for temporary disruption in life and economic activities; (c) either 
employment or training, capital and enterprise support for income restoration in case 
of loss of livelihoods, and (d) provision for replacement of community facilities and 
services for affected communities.  
 
PAP losing agricultural land will be entitled to the following types of compensation 
and rehabilitation measures: 
(a) 
For the majority of schemes, the land will be reallocated within the village by 
the village committees.  According to the Land Administration Law, it 
situations where land reallocation is not possible, the PAP will be paid a 
maxim compensation and resettlement subsidy equivalent to 6 times of the 
average annual production output value of the land in the previous three years.  
If this is not sufficient to restore the livelihoods of the PAP to the pre-
component  level, the compensation/subsidy may be raised to a maximum of 
15
times of the average annual output value of the land in the previous three 
years; 
(b) 
If land compensation and resettlement subsidies paid are still insufficient to 
help the PAP needing resettlement to maintain their original living standards, 
the resettlement subsidies may be increased upon approval by the SOCAD and 
relevant provincial governments.  However, the total land compensation and 
resettlement subsidies shall not exceed 30 times the average annual value of 
the requisitioned and for the three years preceding such requisition;  
(c) 
These amounts will be paid to the village committees whose land is affected 
and will be used for (i) increasing land areas under cultivation if land is 
available; (ii) intensification of agriculture through provision of irrigation, 
improved agricultural practices, etc.; and (iii) development of non-agriculture 
based income generation activities.  PAP will be compensated for the loss of 
standing crops, fruit or industrial trees, as well as any fixed assets at market 
prices;  
(d) 
PAP whose land is temporarily taken by the works under the components  will 
be
compensated for their loss of income, standing crops and for the cost of soil 
restoration and damaged infrastructures. 
 
PAP losing house and auxiliary structures will be entitled to the following 
compensation and rehabilitation measures: 
(a) 
PAP whose houses are being acquired by the components  will be provided 
replacement housing within easy communing distance of their existing homes; 
(b) 
PAP will be provided with compensation at full replacement value, without 
any deduction for depreciation, for any structures and fixed assets affected by  
the components ;  
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(c) 
A pre-determined dislocation allowance according to the prevailing rates of 
the component  areas will also be provided. 
 
If the house and/or structure is only partially affected by the components , the 
component  sponsors may, if its is acceptable to the PAP, acquire the entire structures 
with full compensation or provide cash compensation for the portion affected as 
mutually agreed between the PAP and the sponsors. 
 
PAP losing business will be entitled to the following compensation and rehabilitation 
measures: 
(a) 
The mechanism for compensation loss of business will be: (i) the provision of 
alternative business site of equal size and accessibility to customers, 
satisfactory to the PAP; (ii) cash compensation to the owner for lost business 
structure reflecting full replacement cost of the structures, without 
depreciation and the cost of transfer; and (iii) cash compensation for the loss 
of
income during the transition period.  
(b) 
PAP will also be provided compensation at full replacement cost, without 
depreciation for any other fixed assets affected in part or in total by the 
subprojects.   
 
F. 
Legal Framework  
 
The Land Administration Law of the People’s Republic of China (adopted at the 16
th
 
Meeting of the Standing Committee of the Sixth National People’s Congress on June 
25, 1986, amended in accordance with the Decision on Revising the Land 
Administration Law of the People’s Republic of China made by the Standing 
Committee of the Seventh National People’s Congress at its 5
th
 Meeting held on 
December 29, 1988, and revised at the 4
th
 Meeting of the Standing Committee of the 
Ninth National People’s congress on August 29, 1998), the Law on Administration of 
Urban Real Estate of the People’s Republic of China (January 1995), the 
Implementation Regulations of the Laws issued by PRC and the relevant provinces’ 
own detailed implementation regulations of the Laws constitute the legal framework 
governing the implementation of this RPF. The World Bank’s OP/BP. 4.12 on 
Involuntary Resettlement sets forth all the resettlement policies and principles which  
will be well considered by the SOCAD (POCADs and COCADs).  
 
G. Organizational 
Procedures 
 
Although the primary responsibility for enforcement of the RPF and implementation 
of the R&R rest with the component  sponsors, the oversight responsibility shall rest 
with SOCAD and POCADs/COCADs in coordination with the respective local 
government authorities in each of the component  areas.  SOCAD and POCADs shall 
also carry out regular monitoring as required by the World Bank, to ensure that the 
provisions of the RPF are satisfied. 
 
H. Implementation 
Process  
 
A
detailed implementation schedule of the various activities to be undertaken will be 
included in the resettlement instrument.  Payment of compensation and furnishing of 
other rehabilitation entitlements (in cash or in-kind), and relocation if that be the case, 
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will be completed at least one month prior to the scheduled start-up date of works in 
the respective component  site. 
 
I. Grievance 
Redress 
Mechanisms 
 
Since the resettlement work will be carried out with the full participation of the PAP, 
it is expected that no major grievance issue will arise.  However, to ensure that the 
PAP have avenues for redressing their grievance related to any aspect of land 
acquisition and resettlement, detailed procedures of redressal of grievances have been 
established in this RPF.  The objective is to respond to the complaints of the PAP 
speedily and in a transparent manner. 
 
The procedures are as follows: 
(a) 
Stage 1, any person aggrieved by any aspect of the resettlement document can 
lodge an oral or written grievance to the Village Committee, township/ town 
government or Residents Committee, District Government; 
(b) 
Stage 2, if the aggrieved person is not satisfied with the decision of the grass-
roots authorities at Stage 1, s/he can present the case to the land administration 
bureau from those immediately above Stage 1 level through the highest 
authorities of the respective component  area.  
(c) 
Stage 3, if the PAP is still dissatisfied with the decision of the higher 
authorities, the case may be submitted for consideration by the People’s Court 
in Accordance with the “Civil Procedure Act”. 
 
J. Funding 
Arrangement 
 
Compensation of land is based on ten times of the average annual output value of the 
requisitioned land for three years preceding such requisition.  Resettlement subsidies 
for requisition of cultivated land shall be six times the average annual output value of 
the requisitioned cultivated for three years preceding such requisition.  In order to 
protect the interests of the farmers and to ensure the land acquisition, resettlement 
compensation will not be reduced by the drop of agricultural output value in the 
market, and the criteria of the compensation will be determined according to local 
conditions.  
 
The value of the fix assets is estimated according to the replacement cost.  Details of 
the cost estimation and other compensation for moving and loss of 
production/business are included in the Resettlement Plan prepared for the project 
before appraisal.  
 
  
 
The land acquisition and resettlement compensation are sourced from the counterpart 
funds.  All the funds shall be paid to the PAP before the land is taken and the house is 
demolished.     
K. Participation 
and 
Consultation 
The component  sponsors would be required to carry out the participation and 
consultation of the people in the component  areas.  A broad acceptance of proposed 
measures by the PAP – including relocation areas and replacement lands, 
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compensation policies and rates, proposed income restoration measures for R&R 
–
will be a necessary condition for approval of the resettlement plans. 
 
PAP will participate throughout the various stages of the planning and implementation 
of the resettlement plans.  For these purposes and prior to the preparation of the 
resettlement plans, the PAP will be informed of the provisions of this RPF at public 
meetings.  Each affected household or shop will be fully informed by the relevant 
local governments of their entitlements and rehabilitation choices under the respective 
resettlement plan. 
 
L. Monitoring 
 
The internal monitoring of resettlement impacts will be carried out by the component  
sponsors as an integral part of the implementation of the plans, and will cover the 
component  and post-component  periods.  It will assess achievements against key 
implementation targets and objectives and, accordingly, make corrections in the plans 
where necessary.  Periodical monitoring reports will be submitted to POCADs and 
SOCAD. In addition, the external monitoring, arranged under the Resettlement Plan 
prepared before the project appraisal, will cover all resettlement components  under 
the IAIL III Project.    
 
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