RP1343 v2 Resettlement Action Plan of the Construction Project of the 3-25# Berths of the Putou Operation Zone in Xiuyu Port Area, Meizhou Bay, Fujian Meizhou Bay Harbor Administration Bureau of Fujian Province June 2012 Contents 1 Overview of the Project ......................................................................................................... 1 1.1 Background of the Project ......................................................................................... 1 1.2 Components and Resettlement Impacts .................................................................... 2 1.3 Resettlement Funds and Sources ............................................................................... 1 1.4 Measures to Reduce Resettlement Impacts ............................................................... 1 1.5 Project Preparation and Progress............................................................................... 1 2 Project Impact Analysis ......................................................................................................... 2 2.1 Survey of Resettlement Impacts ................................................................................ 2 2.2 Identification of the Right to Use Sea Areas ............................................................. 2 2.3 Project Impact Analysis ............................................................................................. 3 2.3.1 Affected Persons................................................................................................... 3 2.3.2 Affected Vulnerable Groups ................................................................................ 6 2.3.3 Affected Ethnic Minorities .................................................................................... 7 2.4 Social Impact Analysis .............................................................................................. 7 2.4.1 Positive Impacts of the Project ........................................................................... 7 2.4.2 Negative Impacts of the Project and Countermeasures ................................. 8 3 Socioeconomic Survey of the Project................................................................................ 10 3.1 Socioeconomic Profile of the Affected City/District/County .................................. 10 3.2 Socioeconomic Profile of the Affected Town.......................................................... 10 3.3 Socioeconomic Profile of the Affected Villages...................................................... 11 3.4 Basic Information of the AHs.................................................................................. 14 3.5 Analysis of the Minority Population ....................................................................... 16 3.6 Social Gender Analysis ........................................................................................... 16 3.6.1 Overall Development of Women in the Project Area ............................... 16 3.6.2 Survey on Women’s Development ............................................................. 17 4 Laws, Regulations and Policies ......................................................................................... 19 4.1 Laws and Policies on Resettlement ......................................................................... 19 4.2 Key Provisions of Laws, Regulations and Policies on Resettlement ...................... 19 4.2.1 Land Administration Law of the PRC ......................................................... 19 4.2.2 Fisheries Law of the PRC............................................................................ 19 4.2.3 Law of the PRC on the Administration of Sea Areas ............................... 20 4.2.4 Measures of Fujian Province for the Implementation of the Fisheries Law of the PRC ............................................................................................................. 21 4.2.5 Notice of the Fujian Provincial Government on Issuing the Measures of Compensation for the Use of Sea Areas of Fujian Province.................................. 22 4.2.6 Compensation Rates for Land Acquisition and House Demolition of Putian City ..................................................................................................................... 24 4.2.7 Bank Policy on Involuntary Resettlement ................................................. 24 4.3 Policies and Compensation Rates of the Project ..................................................... 25 4.3.1 Policies of the Project .................................................................................. 25 4.3.2 Compensation rates ..................................................................................... 25 5 Income Restoration Measures for APs.............................................................................. 28 5.1 Objective of Resettlement ....................................................................................... 28 5.2 Impact Analysis of and Restoration Program for Sea Area Withdrawal ................. 28 i 5.2.1 Impact Analysis of Sea Area Withdrawal .................................................. 28 5.2.2 Resettlement Modes and Income Restoration Programs....................... 39 5.3 Income Restoration Programs for the Affected Villages ......................................... 48 5.4 Restoration Program for Affected Vulnerable Groups ............................................ 55 5.5 Restoration Program for Affected Ethnic Minorities .............................................. 56 5.6 Protection of Women’s Rights and Interests............................................................ 56 6 Resettlement Budget and Management ........................................................................... 58 6.1 Financial Budget ..................................................................................................... 58 6.2 Fund Use Plan ......................................................................................................... 59 6.3 Disbursement, Management and Monitoring of Funds ........................................... 59 6.3.1 Disbursement of Funds................................................................................ 59 6.3.2 Management and Monitoring of Funds ..................................................... 59 7 Organization .......................................................................................................................... 60 7.1 Agencies for Resettlement Actions ......................................................................... 60 7.2 Institutional Responsibilities ................................................................................... 60 7.3 Institutional Qualifications and Staffing ................................................................. 61 7.4 Measures to Strengthen Institutional Capacity ........................................................ 62 8 Implementation Plan ............................................................................................................ 64 8.1 Principles for Progress Coordination between Resettlement and Project Construction ............................................................................................................................ 64 8.2 Schedule for Key Resettlement Tasks ..................................................................... 64 8.2.1 Principles for Schedule Preparation .......................................................... 64 8.2.2 Resettlement Schedule................................................................................ 64 9 Public Participation and Grievance Redress .................................................................... 66 9.1 Strategy and Methods of Public Participation ......................................................... 66 9.2 Completed Public Participation and Consultation Activities .................................. 66 9.3 Information Disclosure............................................................................................ 69 9.4 Public Participation Plan for the Next Stage ........................................................... 69 9.5 Appeal Procedure and Handling ............................................................................. 71 10 Monitoring and Evaluation........................................................................................... 73 10.1 Internal Monitoring ................................................................................................. 73 10.1.1 Implementation Procedure .......................................................................... 73 10.1.2 Scope of Monitoring ..................................................................................... 73 10.1.3 Internal Monitoring Reporting ..................................................................... 73 10.2 Independent External Monitoring ........................................................................... 74 10.2.1 Independent Monitoring Agency ................................................................. 74 10.2.2 Monitoring Procedure and Scope............................................................... 75 10.3 Post-evaluation ........................................................................................................ 75 11 Entitlement Matrix ......................................................................................................... 76 Appendixes .................................................................................................................................... 77 Appendix 1 Fieldwork Methods of the RAP Preparation Team .............................................. 77 Appendix 2 Public Participation Activities at the Preparation Stage ...................................... 78 Appendix 3 Village-level publicity ......................................................................................... 80 Appendix 4 The list of participants ......................................................................................... 85 Appendix 5 Resettlement discussions and interviews ............................................................. 92 ii List of Tables Table 1-1 Main Resettlement Impacts of the Project ................................................................ 1 Table 2-1 Resettlement Impact Analysis of the Project............................................................. 4 Table 2-2 Summary of Affected Vulnerable Groups ................................................................. 6 Table 2-3Summary of Affected Ethnic Minorities .................................................................... 7 Table 3-1 Summary of Key Economic Indicators of the Affected Villages ............................ 13 Table 3-2 Income of Sample Households (2011) .................................................................... 15 Table 3-3 Expenditure of Sample Households (2011)............................................................. 16 Table 4-1 Compensation Rates for Sea Area Withdrawal of the Project ................................. 26 Table 5-1 Analysis of Lost Aquaculture Area in Sea Area Withdrawal (Village Groups) ....... 31 Table 5-2 Analysis of Lost Income in Sea Area Withdrawal (Village Groups) ....................... 33 Table 5-3 Summary of Loss Rates of Aquaculture Income of Affected Village Groups ......... 34 Table 5-4 Analysis of Lost Aquaculture Area in Sea Area Withdrawal (Households) ............ 36 Table 5-5 Analysis of Lost Income in Sea Area Withdrawal (Households) ............................ 36 Table 5-6 Summary of Loss Rates of Per Capita Income of Affected Villages....................... 38 Table 5-7 Expected Resettlement Modes of Households Affected by Sea Area Withdrawal.. 39 Table 5-8 Estimated Labor Force Employed in the Project .................................................... 45 Table 5-9 Summary of Planned Training Activities in the Project .......................................... 46 Table 5-10 Summary of Compensation and Income Restoration Measures of Shiqian Village ......................................................................................................................................... 50 Table 5-11 Summary of Compensation and Income Restoration Measures of Daxiang Village ......................................................................................................................................... 51 Table 5-12Summary of Compensation and Income Restoration Measures of Shiwei Village 53 Table 5-13Summary of Compensation and Income Restoration Measures of Shitou Village 55 Table 6-1 Budget of the Project............................................................................................... 58 Table 7-1 Staffing of Resettlement Agencies of the Project .................................................... 62 Table 7-2 Resettlement Training Program............................................................................... 62 Table 8-1 Resettlement Schedule of the Project ...................................................................... 64 Table 9-1 Public Participation Process of APs ........................................................................ 67 Table 9-2 Information Disclosure Plan of the Project ............................................................. 69 Table 9-3 Public Participation Plan for the Next Stage ........................................................... 70 Table 9-4 Registration Form of Grievances and Appeals on Resettlement ............................. 72 Table 10-1 Progress Report on Land Acquisition, House Demolition and Resettlement ........ 74 Table 10-2 Progress of Fund Utilization ................................................................................. 74 List of Figures Figure 3-1 Age Structure of Sample Households of the Project ...................................... 14 Figure 3-2 Educational Level of Sample Households of the Project ............................... 15 Figure 7-1 Organizational Chart ....................................................................................... 60 iii Abbreviations AH - Affected Household AP - Affected Person CPC - Communist Party of China DWT - Deadweight Tonnage FGD - Focus Group Discussion FPMO - Fujian Project Management Office FPPDC Fujian Putou Port Development Co., Ltd. FPTD - Fujian Provincial Transport Department FSR - Feasibility Study Report LNG - Liquefied Natural Gas MBHAB - Meizhou Bay Harbor Administration Bureau M&E - Monitoring and Evaluation PRC - People’s Republic of China RAP - Resettlement Action Plan RIB - Resettlement Information Booklet RPF - Resettlement Policy Framework Units Currency unit = Yuan (RMB) US$1.00 = RMB6.33 I 1 Overview of the Project 1.1 Background of the Project In the background of accelerating the construction of West Coast Economic Zone, Meizhou Bay Port in Fujian Province has developed rapidly, with a cargo throughput of 39.069 million tons in 2010 and 45.0957 million tons in 2011. In order to allow for the navigation of large LNG vessels and increase the navigation period of other vessels to meet development and production needs of Meizhou Bay, there is an urgent need to expand the main channel, and increase the berthing and departure capacity of Meizhou Bay, in which the Putou Operation Zone is a key target of construction. According to the Feasibility Study Report (FSR) of the Meizhou Bay Navigation Improvement Project (Phase 3), all dredged spoil will be recovered, and a part thereof will be backfilled directly to the land area behind the 1-25# berths of the Putou Operation Zone and used for the construction of some berths. The Putou Operation Zone has a planned coastline of 4.24 kilometers, starting from Shitoubi and ending at the north boundary of the LNG pipeline in Daxiang Village, and 25 planned 5,000-40,000 DWT berths (1-25# berths) with a total throughput of 24.8 million tons, with a built-up area of about 8 km2 and an estimated investment of about 3.1 billion yuan (excluding equipment). It is planned as a port operation zone that offers public transport services, where public berths will be constructed to develop port-based processing, manufacturing and related industries, and the large-scale land area created by salt pan development will be used as the direct land for port operations, and areas for production, storage, logistics and trade. In the first phase, the Construction Project of the 1-2# berths will be started to construct two 40,000 DWT berths (reserved for 70,000 DWT), with an estimated investment of 700 million yuan. The Construction Project of the 3-25# Berths of the Putou Operation Zone (hereinafter, the ―Project‖) is the second phase construction of the Putou Operation Zone. In December 2011, the State Oceanic Administration gave a reply on the sea area utilization plan for the construction of the Putou Operation Zone in the Xiuyu port area, Meizhou Bay (SOA [2011] No.830), approving the utilization plan in principle. (1) To date, compensation for sea area acquisition and other resettlement activities have been completed for the Construction Project of the 1# and 2# Berths of the Putou Operation Zone, and Fujian Meizhou Bay Port Development Co., Ltd. obtained a certificate of the right to use sea areas in September 2010.In August to September 2011, The Meizhou Bay Harbor Administration Bureau (MBHAB) and the RAP preparation team have investigated persons who have been resettled, interviewed with agencies concerned, collected relevant information, and prepared the Due Diligence Report on Resettlement for the Construction Project of the 1# and 2# Berths of the Putou Operation Zone (see Appendix 6 to the Resettlement Action Plan of the Fujian Meizhou Bay Navigation Improvement Project). (2) The range of the construction site of the Project has been determined preliminarily. Specifically, 1) In order to promote the construction of the Project, resettlement activities involved in sea area withdrawal for the Construction Project of the 3# and 4# Berths of the Putou Operation Zone have begun, the resettlement compensation agreement has been signed, and compensation fees are being paid. 1 The right to use sea areas has passed preliminary examination, and the approval formalities are ongoing. 2) Resettlement activities involved in sea area withdrawal for the Construction Project of the 5# and 6# Berths have begun, the affected village committee and villagers are being consulted, and the right to use sea areas will be submitted for approval. 3) Resettlement activities for the Construction Project of the 7-25# Berths have not begun, this project is at the survey stage, and the right to use sea areas has not been submitted for approval. According to the Bank aide-memoire, in order that the production level and living standard of persons to be affected by sea area acquisition are not reduced during and after project implementation or that they benefit from the Project, MBHAB and the RAP preparation team have prepared this Resettlement Action Plan (RAP). 1.2 Components and Resettlement Impacts A general-purpose and multifunctional dock area, and a bulk cargo dock area have been planned in the Putou Operation Zone. The Project includes: (1) There are nine 10,000 DWT or above berths in the general-purpose and multifunctional dock area, with a coastline of 2,181 meters and an area of about 1.7 million m2 within 750 meters behind the dock is reserved for production. (2) The bulk cargo dock area neighbors the multifunctional dock area, where 14 5,000-10,000 DWT berths are planned, with a coastline of 2,060 meters and an area of about 800,000 m2 within 450 meters behind the dock is reserved for production. (3) The port supporting system will be located northeast of the bulk cargo dock area, with a coastline of 450 meters and a land area of about 160,000 m2. According to the planning of use sea and physical quantity survey of the 3-25# Berths of the Putou Operation Zone ,the main type of resettlement impacts of the Project is the withdrawal of the right to use sea areas (sea area withdrawal for short below), and the Project involves neither house demolition nor land acquisition. Sea area withdrawal involves 4 administrative villages in one township, Xiuyu District, Putian City, affecting 1,631 households with 8,725 persons directly. A sea area of 7,774.39 mu will be withdrawn for the Project, including an aquaculture water surface area of 6,825.91 mu. See Table 1-1. 2 Table 1-1 Main Resettlement Impacts of the Project Specifical Permanently Specificall:A ly :Non The Sea Hous withdrawn quaculture Aquacultur project area Kelp Oyster Clam Shrimp Popu Remarks Project berths clam ehold sea area water surface e water affected （mu） （mu） (mu) （mu） （mu） lation （mu） s (mu) (mu) surface villages (mu) Daxiang 735.41 300 228.11 119.3 88 / 379 1820 Sea use rights have through pre-examine , 3#-4# 1249.01 164.58 1084.43 examination Shiqian 349.02 153.36 135.24 60.43 / / 224 1176 and approval procedures is Putou on the going Operatio Shiqian 517.39 227.34 200.47 89.57 / / 331 1739 the sea use n Zone 5#-6# 1355.18 153.14 1202.04 rights ready Shiwei 684.65 162.08 391.42 109.40 5.54 16.21 106 618 3#-25# for approval berths 1767.4 sea use rights 7#-11# 2013 245.58 1767.42 Shiwei 418.41 1010.44 282.43 14.30 41.84 272 1594 2 for approval is Shiwei 927.24 219.51 530.11 148.17 7.50 21.95 143 836 not going ,and expected to be 12#-25 3157.2 385.18 2772.02 1844.7 completed # Shitou 77.74 825.81 881.23 60 / 176 942 8 within two years Total 7774.39 948.48 6825.91 / 6825.91 1558.44 3321.6 1690.53 175.34 80 1631 8725 1 1.3 Resettlement Funds and Sources The estimated gross investment in resettlement of the Project is about 58,344,600yuan, and will be from domestic counterpart funds. 1.4 Measures to Reduce Resettlement Impacts At the planning and design stages, the design agency and the owner took the following effective measures in order to reduce the local socioeconomic impacts of the Project: 1) At the project planning stage, the local socioeconomic impacts of the Project were taken as a key factor for option optimization and comparison; 2) The design was optimized to reduce the amount of dredging, rock blasting and backfilling in order to avoid affecting aquaculture households, reduce the amount of sea area recovered, and minimize the impact on the local socioeconomic conditions and people’s living standard. At the RAP preparation and implementation stages, when sea area withdrawal is unavoidable, the following measures will be taken to reduce the local impacts of the Project: 1) Strengthen the collection of basic information, make an in-depth analysis of the local present socioeconomic conditions and future prospect, and develop a feasible RAP based on the local practical conditions to ensure that the APs will not suffer losses due to the Project. 2) Encourage public participation actively and accept public supervision. 3) Strengthen internal and external monitoring, establish an efficient and unobstructed feedback mechanism and channel, and shorten the information processing cycle to ensure that issues arising from project implementation are solved timely. 1.5 Project Preparation and Progress In December 2011, the State Oceanic Administration gave a reply on the sea area utilization plan for the construction of the Putou Operation Zone in the Xiuyu port area, Meizhou Bay (SOA [2011] No.830), approving the utilization plan in principle. By the end of April 2012, the Project was at the design stage and progressed smoothly with the joint effort of Fujian Putou Port Development Co., Ltd. (FPPDC), the PMO and the design agency. The National Research Center for Resettlement at Hohai University was appointed by MBHAB to participate in the whole preparation of the RAP of the Project as the consulting agency. During May 7-20, 2012, MBHAB, the Dongzhuang Town Government, the village committees concerned and the RAP preparation team conducted a socioeconomic survey on possible resettlement activities of the Project, and extensive public consultation with the APs. In mid July 2012, the RAP for the Project was completed. 1 2 Project Impact Analysis 2.1 Survey of Resettlement Impacts The project owner, PMO, MBHAB, FRS preparation agency, the Dongzhuang Town Government and the village committees concerned conducted a DMS in April and May 2012. According to the Terms of Reference for the RAP, MBHAB, the Dongzhuang Town Government, the village committees concerned and Hohai University conducted a series of field surveys during May 7-20 and July 2-6, 2012: (1) A questionnaire socioeconomic survey was conducted on project impacts, and 120 affected aquaculture households (7.36% of all AHs) with 616 persons in the project area; (2) Government agencies concerned were visited, including the municipal civil affairs bureau, ocean and fishery bureau, labor & social security bureau, and women’s federation, and 14 persons concerned were interviewed in depth; (3) 3 institutional FGDs were held with the provincial, municipal and district ocean and fishery departments, and the municipal and district human resources and social security bureaus, the project owner, MBHAB, the Yuxiu District Government, the Dongzhuang Town Government and the village committees concerned, and 4 FGDs held with the Dongzhuang Town Government, the village committees concerned and representatives of the APs, in which 40% of the participants were women. and (4) Representatives of 20 AHs were interviewed in depth. The survey covered project impacts and suggestions, income and expenditure of the AHs, household livelihood patterns, expected resettlement modes, and income restoration programs. 2.2 Identification of the Right to Use Sea Areas According to the Law of the PRC on the Administration of Sea Areas, ―The sea areas shall belong to the state, and the State Council shall exercise ownership over the sea areas on behalf of the state. No entity or individual may usurp on, buy or sell or by any other means transfer sea areas. The right to use sea areas shall be lawfully obtained for the use of sea areas by any entity or individual.‖ Based on the field survey, the sea area involved in the Project is state-owned. According to the Opinions of the Fujian Provincial Government on the Implementation of Some Opinions of the State Council on Supporting Fujian Province to Accelerate the Construction of West Coast Economic Zone, the Outline of the 12th Five-year Plan for National Economic and Social Development of Fujian Province, and the Development Plan for the West Coast Urban Group (2008-2020), the onshore area of Meizhou Bay has been planned as a port-based industrial base with focus on petrochemicals and equipment manufacture, and the aquaculture function should be adjusted, including the project area. The local ocean and fishery department has not granted the right to use local marine and tidal-flat resources to any collective, fishery production organization or individual in the project area. 2 2.3 Project Impact Analysis 2.3.1 Affected Persons According to the DMS data, a sea area of 7,774.39 mu will be occupied for the Project, including 6,825.91 mu of aquaculture water surface and 948.48 mu of non aquaculture water surface, affecting 1,631 households with 8,725 persons. The affected fishermen are villagers in Shiqian Village (including 11 village groups), Daxiang Village (including 11 village groups), Shiwei Village (including 10 village groups) and Shitou Village (including 4 village groups), Dongzhuang Town, Xiuyu District. See Table 2-1. 3 Table 2-1 Resettlement Impact Analysis of the Project Impacts of sea area withdrawal Non Aquaculture Total Project City District Town Village Group Aquaculture Households Population water surface recovered sea water surface (mu) area (mu) (mu) Group 1 55 265 91 11.5 102.5 Group 2 40 216 79 11 90 Group 3 45 228 87 10 97 Group 4 60 318 86 12 98 Group 5 55 285 63 10.39 73.39 Group 6 60 325 83.4 8 91.4 Shiqian Group 7 50 275 82 11 93 Group 8 50 274 81 12.5 93.5 Group 9 45 225 67 10.5 77.5 Group 10 60 329 93.3 12.5 105.8 Putou Group 11 35 175 53.71 11 64.71 Operatio Subtotal 555 2915 866.41 120.39 986.8 n Zone Putian Xiuyu Dongzhuang Groups 1-4 4 25 20 39 59 3#-25# berths Group 5 42 203 91.3 8 99.3 Group 6 55 268 103.11 9 112.11 Group 7 60 306 114 10.5 124.5 Daxiang Group 8 52 258 113 11.7 124.7 Group 9 50 240 100 9 109 Group 10 58 265 97 8 105 Group 11 58 255 97 7 104 Subtotal 379 1820 735.41 102.2 837.61 Group 1 55 325 365 45 410 Group 2 54 328 306.5 43 349.5 Shiwei Group 3 52 315 327.34 47 374.34 Group 4 56 328 369.47 48 417.47 4 Group 5 57 321 379 46 425 Group 6 40 232 258 47 305 Group 7 45 225 300 44.15 344.15 Group 8 60 355 384 48.4 432.4 Group 9 51 316 339 45 384 Group 10 51 303 351 56 407 Subtotal 521 3048 3379.31 469.55 3848.86 Group 1 46 249 460 65.14 525.14 Group 2 45 238 460 68 528 Shitou Group 3 43 235 472.97 62 534.97 Group 4 42 220 451.81 61.2 513.01 Subtotal 176 942 1844.78 256.34 2101.12 Total 1631 8725 6825.91 948.48 7774.39 5 2.3.2 Affected Vulnerable Groups Among the affected population, 45 households with 100 persons fall into vulnerable groups, including households receiving minimum living security and five-guarantee households. There are 39 households receiving minimum living security with 94 persons in total, including 17 households with 39 persons in Shiqian Village, 12 households with 30 persons in Daxiang Village, 7 households with 18 persons in Shiwei Village and 3 households with 7 persons in Shitou Village. There are 6 five-guarantee households with 6 persons in total, including 3 households with 3 persons in Shiqian Village, one household with one person in Shiwei Village and 2 households with 2 persons in Shitou Village. See Table 2-2. Table 2-2 Summary of Affected Vulnerable Groups Households receiving five-guarantee Subtotal Village Group minimum living security households Households Population Households Population Households Population Group 1 1 2 0 0 1 2 Group 2 2 5 0 0 2 5 Group 3 1 2 0 0 1 2 Group 4 2 4 0 0 2 4 Group 5 1 2 1 1 2 3 Group 6 2 5 1 1 3 6 Shiqian Group 7 1 2 1 1 2 3 Group 8 2 5 0 0 2 5 Group 9 1 3 0 0 1 3 Group 10 2 4 0 0 2 4 Group 11 2 5 0 0 2 5 Subtotal 17 39 3 3 20 42 Group 1 1 2 0 0 1 2 Group 2 2 5 0 0 2 5 Group 3 1 3 0 0 1 3 Group 4 1 3 0 0 1 3 Group 5 1 2 0 0 1 2 Group 6 1 3 0 0 1 3 Daxiang Group 7 1 2 0 0 1 2 Group 8 1 3 0 0 1 3 Group 9 1 2 0 0 1 2 Group 10 2 5 0 0 2 5 Group 11 0 0 0 0 0 0 Subtotal 12 30 0 0 12 30 Group 1 0 0 0 0 0 0 Group 2 1 3 0 0 1 3 Group 3 1 2 0 0 1 2 Group 4 1 3 0 0 1 3 Shiwei Group 5 1 2 0 0 1 2 Group 6 1 3 0 0 1 3 Group 7 0 0 1 1 1 1 Group 8 0 0 0 0 0 0 6 Group 9 1 2 0 0 1 2 Group 10 1 3 0 0 1 3 Subtotal 7 18 1 1 8 19 Group 1 1 3 0 0 1 3 Group 2 1 2 1 1 2 3 Shitou Group 3 1 2 0 0 1 2 Group 4 0 0 1 1 1 1 Subtotal 3 7 2 2 5 9 Total 39 94 6 6 45 100 2.3.3 Affected Ethnic Minorities There are 10 members of an ethnic minority (Miao) in the project area, while all other residents are Han people. See Table 2-3. Table 2-3Summary of Affected Ethnic Minorities City District Town Village Group Population Ethnic group Putian Xiuyu Dongzhuang Shiwei 2 6 Miao Putian Xiuyu Dongzhuang Shitou 3 4 Miao 2.4 Social Impact Analysis In the construction of the Putou Operation Zone, dredged spoil from the Meizhou Bay Navigation Improvement Project (Phase 3) (Stage 2) will be recovered and backfilled to the land area behind the 3-25# berths. During construction and operation, the Project will affect the socioeconomic conditions and resource environment of the project area. In May and June 2012, the RAP preparation team conducted an on-site survey on the project area, visited the town and villages in the project area, and interviewed relevant management agencies and representatives of the APs in depth. Based on the analysis of the survey results, the Project will have positive and negative socioeconomic impacts on the project area. 2.4.1 Positive Impacts of the Project 1. Macroscopic aspect The Putou Operation Zone is located in the Xiuyu port area of Meizhou Bay Port. This is an integrated port area designed mainly for public transport, and serves such port-based industries as LNG, oils, timber and steel. It is a state-level demonstration zone of timber trade and processing, and has the first state-level seaport timber quarantine area. The Putou Operation Zone will be significant for promoting the coordinated development of port-based industries and modern logistics, and meeting the demand for the transport of passengers and cargos with Taiwan. The Putou Operation Zone is designed to offer public integrated transport services, such as the transport of general bulk cargos, including grain and steel products, the roll-on (drop and pull) transport of passengers and cargos with Taiwan, and modern logistics. Port-based industries will be developed actively to build the zone into an integrated modern port serving port-based industries and the local economy, and integrating multimodal transport, trade, storage and processing. The Project will play a crucial role in improving the channel navigation and 7 berthing capacity of Meizhou Bay, promoting the structuring and development of West Coast Economic Zone, attracting Taiwanese and foreign capital, and promoting the ―Three Direct Links‖ and China’s unification. 2. Microscopic aspect 1) The construction of the Putou Operation Zone will attract more investment, and generate more job opportunities for fishermen on both sides of Meizhou Bay and near the Putou Operation Zone. 2) Local raw materials will be used partly during construction, which will increase the income of enterprises near Meizhou Bay and Xiuyu District. 3) At the construction stage, the contractor will have a great demand for residential property leases and catering services. Although such demand will last 2-3 years only, it will generate 700 job opportunities for residents in Xiuyu District and Dongzhuang Town during the peak period, and increase their income. The construction agency will urge the contractor to provide unskilled jobs to the APs first, including women and the poor. 4) Through communication with the local labor & social security department, training courses held in the project area will be first made available to the APs, and will include crop cultivation, aquaculture and industry transfer skills based on the local socioeconomic conditions and the APs’ needs. 5) The Project will promote the public participation of women. At the project design stage, women’s needs and suggestions will be solicited and incorporated into the project design. On the other hand, the scope, time and location of training will be selected based on local women’s needs so as to ensure that more women are trained and benefit from the Project. 2.4.2 Negative Impacts of the Project and Countermeasures The Project’s negative resettlement and environmental impacts will be minimized. If such impacts are inevitable, the owner should take all effective measures to avoid or reduce such impacts. Through the field survey and the analysis of the Project, the Project will have the following possible negative socioeconomic impacts: 1) A sea area of 7,774.39 mu will be withdrawn for the Project, including an aquaculture water surface of 6,825.91 mu and an non aquaculture water surface of 948.48 mu,affecting 1,631 households with 8,725 persons. Although the AHs will receive compensation from the Project, their income will be affected temporarily. 2) Project construction will affect the surrounding aquaculture environment. 3) At the construction stage, the main channel will be occupied, and the regular operation, berthing and departing of the navigation sections in Meizhou Bay will be affected for a certain time. Through communication with the PMO, MBHAB and local government agencies concerned, the following measures should be taken to avoid or reduce the above negative impacts. 1) Prepare a detailed RAP and resettlement policies to restore the APs’ production level and living standard, involve the APs in the consultation and decision-making of construction and resettlement programs, conduct labor skills training pertinently, and encourage the APs to participate in social insurance. 2) Prepare a detailed Environmental Impact Assessment (EIA) Report to make 8 clear the possible environmental impacts of the Project, propose detailed measures and restoration programs to avoid negative impacts, and strengthen construction management and optimize the construction program to minimize negative environmental impacts (see the EIA Report). The APs will be consulted about the temporary impacts of rock blasting, and their aquaculture areas will be relocated temporarily and compensated for, and may be moved back after construction. 3) At the construction stage, the PMO will urge the contractor to minimize the negative impact on the traffic of the navigation channels by adopting a sectionalized construction approach and performing construction within the specified hours, improve construction efficiency and shorten the construction period. According to the interviews with the local maritime bureau, and ocean and fishery bureau, at the construction stage, the local maritime bureau will usually issue a navigation notice in advance to specify the construction period, area and scope, and the relevant precautions in detail. 1) The notice will specify that operating vessels should signal in accordance with the Regulations on Coastal Port Signaling, and impose traffic control measures on the water area of construction. 2) In case of blasting, the constructor should report the local traffic control center one hour in advance, and blasting should not be implemented until the local maritime bureau has issued a VHF navigation alarm. 3) The constructor will report the piloting and construction scheme of the next day to the local traffic control center by 16:00 of each day, and the local maritime bureau will release information on blasting time, navigation hours and entry/exit arrangements on its website on a daily basis. 9 3 Socioeconomic Survey of the Project 3.1 Socioeconomic Profile of the Affected City/District/County Putian City—Putian City is located on the central coast of Fujian Province, and governs Xianyou County, Licheng, Chengxiang, Hanjiang and Xiuyu Districts, and the Administrative Committee of the Meizhou Island National Resort. At the end of 2010, the city’s land area was 4,119 km2, sea area 11,000 km2, coastline 534.5 kilometers, including a mainland coastline of 271.6 kilometers and an island coastline of 262.9 kilometers, and resident population 3,069,700. The city abounds with such marine products as eel, prawn, swimming crab and Dingchang fish, and is known for the ―four major fruits‖ of longan, litchi, loquat and pomelo. The city is also one of the ―famous historical and cultural cities‖ of Fujian. The city boasts an advantaged geographic location and three major bays – Meizhou, Xinghua and Pinghai Bays, and has navigational links with ports in many countries and regions in the world. In 2011, the city’s regional GDP was 105.537 billion yuan, an increase of 15% from the previous year based on comparable prices, per capita GDP 41,256 yuan and per capita net income of farmers 9,066 yuan. Xiuyu District—Xiuyu District is under the jurisdiction of Putian City, surrounded by Xinghua, Pinghai and Meizhou Bays. The district has a land area of 390 km2, a sea area of 4,514.75 km2, 143 lands, a coastline of 471.19km, including a mainland coastline of 237 kilometers and an island coastline of 233.89 kilometers. The district governs 6 towns and one Xiang, and 147 villages/communities. At the end of 2011, the district’s resident population was 790,000. The district abounds with fishery, salt, coastal tourism and marine mineral resources. Currently, nearly 200,000 people of the district are working or doing business outside, dealing mainly with building materials, pharmaceutics, jewelry, stone sculpture, etc. In order to attract timber enterprises, a timber processing zone has been established in the district. A jewelry and stone sculpture distributing center that integrates production, supply and marketing has taken form. An integrated petrochemical base for middle and lower stream projects has been established south of Meizhou Bay in the district. In addition, there is an extensive prospect for the thermal power, energy utilization and LNG industry chains in the district, presenting a unique industrial advantage. In 2011, the district’s GDP was 14.1 billion yuan, the ratio of primary, secondary and tertiary industries was 14.9:57.9:27.2, and the per capita net income of farmers 8,600 yuan. 3.2 Socioeconomic Profile of the Affected Town Dongzhuang Town—Dongzhuang Town is located in the west of Xiuyu District, Putian City, beside Meizhou Bay. The town governs one community committee and 23 administrative villages, and is run through by the Puxiu Highway. The town has a population of 81,714, a territory area of 35 km2, a cultivated area of 28,275.5 mu, including 13,558.5 mu of non-irrigated land and 4,617 mu of irrigated land, a per capita cultivated area of 0.35 mu, a reclamation area of 9,675.9 mu, a shelter forest area of 455 mu, a coastline of 25 kilometers and 17 reclamation areas (including 6 reclamation areas of over 1,000 mu). The town’s private economy is developed, and 10 over 80% of private hospitals nationwide are founded by people from the town, with total assets of 36 billion yuan, an annual turnover of 305 billion yuan and a total workforce of 630,000, contributing actively to national medical reform. In recent years, the LNG-generated electricity, shipping, chemical storage and health industries have been developed actively in the town. In 2011, the town’s population was 80,112, and the per capita net income of farmers was 12,855 yuan. 3.3 Socioeconomic Profile of the Affected Villages The Project involves 4 administrative villages in Dongzhuang Town, Xiuyu District, Putian City, namely Shiqian, Daxiang, Shiwei and Shitou Villages. The 4 affected villages have 2,354 households with 12,151 persons in total, 5.16 persons per household on average. The affected villages have a small amount of cultivated land, with a per capita cultivated area of less than 0.5 mu. Most cultivated land is used to grow peanut, yam and vegetables, most crops are intended for household consumption, and crop cultivation income accounts for a low proportion to gross income. Sea and tidal-flat aquaculture is the main part of fishery income, which accounts for a low proportion to gross income. The main income sources of these 4 villages are outside employment and doing business, and young and adult laborers of almost every household work outside or do business, including working for building, catering, transport and apparel enterprises, and running medical apparatus, timber, jewelry and stone sculpture manufacturers, and private hospitals. Old people stay in their villages to deal with tidal-flat aquaculture. According to the survey, laborers in Shiqian and Daxiang Villages work outside mainly, and the proportion of doing business is lower than that of Shiwei and Shitou Villages. Therefore, the per capita net income of Shiqian and Daxiang Villages is lower than that of Shiwei and Shitou Villages. (1) Shiqian Village The village has 826 households with 4,240 persons, per capita net income of 19,500 yuan in 2011, a cultivated area of 1,650 mu, 0.39 mu per capita. Most of cultivated land is used to grow peanut, yam and vegetables, for self-consumption mainly. Land-based income accounts for a low proportion to gross income. The village has 1,100 mu of aquaculture water surface, 0.26 mu per capita, and aquaculture income accounts for about5.13% of household income. The main income sources of the village are outside employment and doing business, accounting for 60% of the village’s labor force, in which those working outside account for about 80% of laborers going outside, dealing mainly with building, stone materials, catering and transport, and the other 20% run medical apparatus and apparel processing enterprises mainly. (2) Daxiang Village The village has 659 households with 3,016 persons, per capita net income of 22,000 yuan in 2011, a cultivated area of 345 mu, 0.11 mu per capita. The main crops are peanut and yam, for self-consumption mainly. Land-based income is low. The village has 1,385 mu of aquaculture water surface, 0.46 mu per capita, and aquaculture income accounts for about 6.82% of household income. The main income sources of the village are outside employment and doing business, accounting for 65% of the village’s labor force, in which those working outside account for about 70% of laborers going outside, dealing mainly with medical apparatus, building, timber, 11 catering and transport, and the other 30% run medical apparatus and timber manufacturers, and private hospitals mainly. (3) Shiwei Village The village has 580 households with 3,348 persons, per capita net income of 27,500 yuan in 2011, a cultivated area of 970 mu, 0.32 mu per capita. Most of cultivated land is used to grow peanut, yam and vegetables, for self-consumption mainly. Land-based income accounts for a low proportion to gross income. The village has 3,626 mu of aquaculture water surface, 1.08 mu per capita, and aquaculture income accounts for about 10.91% of household income. The main income sources of the village are outside employment and doing business, accounting for 70% of the village’s labor force, in which those working outside account for about 60% of laborers going outside, dealing mainly with medical apparatus, building, timber and catering, and the other 40% run medical apparatus enterprises mainly. (4) Shitou Village The village has 289 households with 1,547 persons, per capita net income of 40,000 yuan in 2011, a cultivated area of 300 mu, 0.19 mu per capita. The main crops are peanut and yam, for self-consumption mainly. The village has 1,853.26 mu of aquaculture water surface, 1.20 mu per capita, and aquaculture income accounts for about 11.25% of household income. The main income sources of the village are outside employment and doing business, accounting for 75% of the village’s labor force, in which those working outside account for about 55% of laborers going outside, dealing mainly with medical apparatus, building, timber and catering, and the other 45% run medical apparatus enterprises and private hospitals mainly. Compared to the other 3 villages, Shitou Village has the highest proportion of labor force doing business, so it is the economically strongest one and has the highest per capita income. See Table 3-1. 12 Table 3-1 Summary of Key Economic Indicators of the Affected Villages Population Per Per capita Per Average Average Aquaculture capita aquaculture capita population labor Cultivated water District Town Village Households cultivated water net Remarks Where, per force per area (mu) surface Total area surface income men household household (mu) (mu) (mu) (yuan) Some villagers deal with tidal-flat aquaculture. The Shiqian 826 4240 2192 5.1 2.5 1650 0.39 1100 0.26 1.95 main income sources are outside employment and doing business. Some villagers deal with tidal-flat aquaculture. The Daxiang 659 3016 141 8 4.6 3.1 345 0.11 1385 0.46 2.2 main income sources are Dongzhuang outside employment and Xiuyu doing business. Some villagers deal with tidal-flat aquaculture. The Shiwei 580 3348 1632 5.8 2.8 970 0.32 3626 1.08 2.75 main income sources are outside employment and doing business. Some villagers deal with tidal-flat aquaculture. The Shitou 289 1547 811 5.4 3 300 0.19 1853.26 1.2 4 main income source is doing business. Total 2354 12151 6053 / / 3265 / 7964.26 / / / Source: 2011 village-level reports 13 3.4 Basic Information of the AHs In order to learn the basic information of the population affected by sea area withdrawal in the Project, the survey team conducted a sampling survey on the AHs. The Project affects 1,631 households with 8,725 persons. 120 households (7.36% of all AHs) with 616 persons (7.1% of all APs) were involved in the sampling survey in total. 1. Ethnic and gender analysis Among the 616 persons of the 120 sample households, there are 493 laborers, and the average population per household is 5.13. There are 10 Miao persons in the affected population, of which 3 were included in the sampling survey. Among the 120 sample households with 616 persons, there are 298 women, accounting for 48.32%. Women deal with farming, tidal-flat aquaculture, housework and outside employment mainly. 2. Age structure Among the 616 persons of the 120 sample households, 78 are underage, accounting for 12.66%; 493 are 18-60 years old, accounting for 80.03%; and 45 are over 60 years old, accounting for 7.13%. See Figure 3-1. Figure 3-1 Age Structure of Sample Households of the Project 3. Educational levels Among the 616 persons of the 120 sample households, 163 have received primary school or below education, accounting for 26.46%; 237 have received junior high school education, accounting for 38.47%; 125 have received senior high school / secondary technical school education, accounting for 20.29%; and 91 have received junior college or above education, accounting for 14.77%. See Figure 3-2. 14 Figure 3-2 Educational Level of Sample Households of the Project 4. Land resources The 120 sample households have a very small amount of cultivated land of 180 mu only; the average cultivated area per household is 1.50 mu and per capita cultivated area 0.29 mu. Their cultivated land is non-irrigated land mainly, on which peanut, yam and soybean are grown，and small part of the cultivated land used to grow vegetables. 5. Aquaculture sea area and tidal flat The 120 sample households have a total area of aquaculture sea area and tidal flat of 395 mu, an average aquaculture area of 3.29 mu per household and a per capita aquaculture area of 0.64 mu. The main aquatic products are hard clam, kelp and sea oyster. 6. Household income and expenditure In 2011, the per capita net income of the AHs was 25,000 yuan. Employment income is dominant in their gross income, accounting for 47.22%, followed by operating income, which accounts for 26.13%. Agriculture and sideline operations are no longer their main income source, accounting for 13.53% only (in which fishery income1 accounts for 8.5% of gross income). See Table 3-2. The gross expenditure of the 120 sample households was 8,339,400 yuan in 2011, in which productive expenses were 2,211,610 yuan, accounting for 26.52%, and nonproductive expenses were 6,127,790 yuan, accounting for 73.48%. See Table 3-3. Table 3-2 Income of Sample Households (2011) Item Unit Total Percentage 1. Agricultural and sideline income yuan 2083620 13.53% Where, fishery income yuan 1309000 8.5% 2. Wage income yuan 1546160 10.04% 3. Employment income yuan 7271880 47.22% 4. Operating income yuan 4024020 26.13% 5. Other income yuan 474320 3.08% 1 Tidal-flat aquaculture is highly restricted by natural conditions (e.g., water quality, climate). According to the survey, typhoons would often lead to infrastructure damage or aquatic product escape, so income is highly unstable. A major loss is usually suffered every 2-3 years. 15 Total yuan 15400000 100.00% Per capita net income yuan 25000 \ Table 3-3 Expenditure of Sample Households (2011) Item Unit Total Percentage 1. Productive expenses yuan 2211610 26.52% Taxes and fees paid yuan 1102470 13.22% Seedlings, feeds, etc. yuan 271030 3.25% Labor costs yuan 571250 6.85% Other yuan 266860 3.20% 2. Nonproductive expenses yuan 6127790 73.48% Electricity costs yuan 344420 4.13% Water costs yuan 195140 2.34% Communication expenses yuan 343580 4.12% Educational expenses yuan 1013240 12.15% Medical expenses yuan 757220 9.08% Non-staple food expenses yuan 2717810 32.59% Other yuan 756380 9.07% 3. Gross expenditure yuan 8339400 100.00% 4. Average gross expenditure per household yuan 69495 \ 5. Per capita gross expenditure yuan 13538 \ 3.5 Analysis of the Minority Population According to the information provided by the Putian Municipal Ethnic and Religious Affairs Bureau, there is no minority community in the project area. Among the affected population of 8,725, there are only 10 members of an ethnic minority (Miao), and the Han population accounts for 99.9%. There is no ethnic boundary in daily intercourse, and residents of all ethnic groups speak Chinese in daily communication. The income sources of the minority people are the same as those of the Han people, including outside employment, etc. 3.6 Social Gender Analysis At the preparation stage, the owner of the Project, the local ocean and fishery department, and other competent departments attached great importance to women’s rights, interests and status in the Project. To learn the division of labor, family status and social status of women in the project area, the survey team visited the local women’s federations, and paid special attention to women in the sampling survey. 3.6.1 Overall Development of Women in the Project Area The Project involves Xiuyu District, Putian City. In the project area as a whole, with the implementation of the Women’s Development Outline of Fujian Province (2001-2010) and the Children’s Development Outline of Fujian Province (2001-2010), programs for women and children have been balanced with society and economy in Putian City. 16 (1) Women’s education According to the Statistical Reports on Women’s Development Monitoring of Putian City, as of 2011, nine-year compulsory education had been fully realized in Putian City, the enrollment rate of girls of school age was over 99%, and annual drop-out rate was below 0.5%. At the junior high school stage, the gross enrollment rate of girls was 100% and their annual drop-out rate below 3%. In 2011, girls accounted for 42.5% of all students of regular institutions of higher learning and 69.1% of all students of higher education institutions for adults in Putian City. (2) Women’s employment, and protection of their rights and interests According to the Statistical Reports on Women’s Development Monitoring of Quanzhou and Putian Cities, publicity on the Labor Contract Law, the Law on Labor Dispute Mediation and Arbitration, and the Regulations for the Implementation of the Labor Contract Law was strengthened during the inspection on the implementation of the Labor Contract Law in Putian City in 2011 to further improve the legal awareness of employers and laborers. The inspection was focused on if employers had signed lawful labor contracts with employees to protect the lawful rights and interests of the labor, including female employees. It was required that female employees should not be dismissed or their labor contracts terminated unilaterally on the ground of marriage, pregnancy, maternity leave or lactation. To date, the labor contract coverage rate of female employees of enterprises in Putian City is over 95% and the contracting rate of female employees is over 88%. The city’s women’ federation also implements the small-grant business startup loan project for women together with the civil affairs bureau to help unemployed and vulnerable women in the project area to get reemployed, and has initiated a number of programs to assist vulnerable women and children to overcome productive and living difficulties in recent years. (3) Women’s participation in social decision-making and management According to the Statistical Reports on Women’s Development Monitoring of Quanzhou and Putian Cities, female officials accounted for 43% of all officials of public institutions in Putian City in 2010, women accounted for 41% of all community committee members, and 96% of heads of village women’s congresses were women. Women are a main force in community- and village-level grass-root autonomous organizations. 3.6.2 Survey on Women’s Development The RAP preparation team paid special attention to women in the sampling survey. Among all the 120 sample households with 616 persons, there were 297 women, accounting for 48.05%. Based on the questionnaire survey, women in the project area are almost the same as men in education, employment, and family and social status. (1) Women’s education The socioeconomic survey shows that men and women in the project area differ slightly in educational level, but less women have received junior high school or above education than men. (2) Women’s employment and labor The socioeconomic survey shows that men and women in the project area have similar employment structures. For example, 41.07% of men work outside, slightly higher than that of women (38.64%); 28.57% of men deal with crop cultivation or 17 aquaculture, slightly higher than that of women (27.27%); 5.57% of men do business, slightly lower than that of women (5.82%). In addition, 3.95% of the female laborers in the sample households are unemployed, mainly because women have to do housework and take care of the family, and also because some women have poorer employment skills and a lower education level than men. It can be seen that the employment status of women is worse than that of men. (3) Division of labor by gender According to the door-to-door socioeconomic survey and the interviews with some women, a couple dealing with agricultural crop �fisheryof aquaculture or working outside is the main pattern of family division of labor in the project area. In 15% of the sample households, a couple does farm work together, especially those aged above 50 years, and in 55% of the sample households, a couple works outside together. In households in which the husband works outside, all farm work is done by the wife or the elderly. The division of labor by gender exists in fishery activities, in which men deal with more physically demanding aquaculture activities (e.g., cofferdam construction, raising of seedlings), while most women deal with less physically demanding activities (e.g., routine management, maintenance, harvesting). Men usually return home for help in the busy season of aquaculture, and then go out for work again (4) Participation in public affairs According to the socioeconomic survey and the interviews with some women, women in the project area participate in village public affairs at a low level, and the female respondentsoften express opinions on public affairs, and would attend village meetings only when husbands are absent. If their husbands are at home, over 35% of the female respondents think their husbands should attend such meetings. 18 4 Laws, Regulations and Policies 4.1 Laws and Policies on Resettlement State laws and regulations  Land Administration Law of the PRC (amended on August 28, 2004)  Fisheries Law of the PRC (amended on August 28, 2004)  Law of the PRC on the Administration of Sea Areas (effective from January 1, 2002) Local regulations and policies  Measures of Fujian Province for the Implementation of the Fisheries Law of the PRC (effective from May 1, 2007)  Administrative Regulations for the Use of Sea Areas of Fujian Province (effective from July 1, 2006)  Notice of the Fujian Provincial Government on Issuing the Measures of Compensation for the Use of Sea Areas of Fujian Province (effective from May 1, 2008)  Compensation Rates for Land Acquisition and House Demolition of Putian City (PMG [2011] No.27) Bank policies:  Operational Policy OP4.12 on Involuntary Resettlement and appendixes (effective from January 1, 2002)  Bank Procedure BP4.12 on Involuntary Resettlement and appendixes (effective from January 1, 2002) 4.2 Key Provisions of Laws, Regulations and Policies on Resettlement 4.2.1 Land Administration Law of the PRC Article 11 Certifications of ownership or use right of wooded land and grassland and the uses or of water surface and tidal flat for breeding purpose shall be managed according to related provisions of the Forest Law of the People's Republic of China, the Grassland Law of the People's Republic of China and the Fisheries Law of the People's Republic of China. 4.2.2 Fisheries Law of the PRC Article 10 The state encourages entities owned by the whole people, collectively owned entities and individuals to make full use of suitable water surface and tidal flat to develop aquaculture. Article 11 In conformity with the overall arrangement made by the state for utilization of water areas, governments at or above the county level may assign state-owned water surfaces and tidal flats that have been designated for aquaculture to entities owned by the whole people and collectively owned entities to develop aquaculture, and after examining their qualifications grant those entities aquaculture licenses to confirm their rights to the use of such water surfaces and tidal flats. Water surfaces and tidal flats used by entities owned by the whole people, water surfaces 19 and tidal flats owned by collectives, and those owned by the whole people but used by collectively owned entities may all be contracted to collectives or individuals to develop aquaculture. Ownership and rights to the use of water surfaces and tidal flats shall be protected by law and shall not be subject to encroachment by any entities or individuals. Article 12 Governments at or above the county level shall give priority to local fishery producers when issuing aquaculture licenses. Article 13 Disputes over the ownership and rights to the use of water surfaces or tidal flats under state planning shall be settled through the procedures stipulated in the applicable laws. Before such disputes are settled, no party may disrupt fishery production in the disputed areas. Article 14 Collectively owned water surfaces and tidal flats for state construction shall be acquired in accordance with the Land Administration Law of the PRC. 4.2.3 Law of the PRC on the Administration of Sea Areas Article 2 The term ―sea area‖ as mentioned in this law shall refer to the interior waters, the surface, body, seabed and bottom soil of the territorial seas… Article 3 The sea areas shall belong to the state, and the State Council shall exercise ownership over the sea areas on behalf of the state. No entity or individual may usurp on, buy or sell or by any other means transfer sea areas. The right to use sea areas shall be lawfully obtained for the use of sea areas by any entity or individual. Article 16 The entities and individuals may apply to the maritime administrative department of the people's government on the county level or above for using the sea areas. When applying for using the sea areas, the applicant shall submit the following written materials: (1) an application for using sea areas; (2) materials justifying the use of sea areas; (3) relevant certification materials of credit standing; (4) other written materials as provided by law or regulations. Article 17 The maritime administrative department of the people's governments on the county level and above shall, according to the functional divisions of the seas, be responsible for the examination of applications for using sea areas and shall, pursuant to this Law and the provisions of the people's government of the provinces, autonomous regions and municipalities directly under the Central Government, submit the application to the competent people's government for approval. Article 18 The use of sea for the purposes as mentioned below shall be subject to the approval of the State Council: (1) the use of sea for projects of filling up the sea up to 50 hectares or more; (2) the use of sea for projects of encircling the sea up to 100 hectares or more; (3) the use of sea for projects of using the sea up to 700 hectares or more without changing the natural qualities of the sea areas; (4) the use of the sea for key state construction projects; (5) the use of the sea for other projects as provided by the State Council. The power to examine and approve the use of the sea for purposes not mentioned in the preceding paragraph shall be provided by the people's government 20 of the provinces, autonomous regions and municipalities directly under the Central Government under the authorization of the State Council. Article 19 After an application for using sea areas is lawfully approved and if the State Council approves the use of the sea, the maritime administrative department of the State Council shall register it in detail lists, and issue a certificate to the applicant indicating the right to use sea areas. If the application for using sea areas is approved by the local people's government, the local people's government shall register it in detailed lists, and issue a certificate to the applicant indicating the right to use sea areas. The applicant for using sea areas shall obtain the right to use sea areas on the day when he obtains the sea area use certificate. Article 25 The maximum term for using sea areas shall be defined according to the following purposes: (1) 15 years for aquatic breeding; (2) 20 years for ship breaking; (3) 25 years for tourism and entertainment; (4) 30 years for salt production and mineral exploitation; (5) 40 years for public interests; (6) 50 years for construction projects including ports, shipbuilding factories, etc. Article 30 For the purpose of public interest or the security of the state, the people's government shall made the approval may lawfully take back the right to use sea areas. If the right to use sea areas is withdrawn pursuant to the provisions of the preceding paragraph prior to the expiration of the term of use, appropriate compensations shall be made to the right holder. Article 33 The state practices the system of using sea areas on the paid basis. Any entity or individual that uses a sea area shall pay royalties for the use according to the rates as provided by the State Council. The royalties for using sea areas shall, pursuant to the provisions of the State Council, be turned over to the state treasury. Article 36 The royalties for the use of the sea for the following purposes may, pursuant to the provisions of the public fiscal department of the State Council and the maritime administrative department of the State Council, and upon the approval of the public fiscal department and the maritime administrative department of competent people's governments, be paid at reduced rates or be exempted: (1) for public facilities; (2) for key construction projects of the state; (3) for aquatic breeding. 4.2.4 Measures of Fujian Province for the Implementation of the Fisheries Law of the PRC Article 6 Entities and individuals dealing with fishery shall observe the regulations on marine traffic safety and maintain the order of marine traffic. It is strictly prohibited to deal with fishing or aquaculture in navigation channels, harbor areas and water source reserves. Article 9 Entities and individuals are encouraged to make full use of suitable sea areas and inland water areas to develop aquaculture or extend ecological aquaculture. 21 Article 12 If any entity or individual is to use any sea area intended for aquaculture under aquaculture planning or any inland water area owned by the whole people for aquaculture, it shall obtain an aquaculture license according to law, and deal with production as permitted by such aquaculture license. Article 13 If collective economic organization has obtained the right to use any sea area or inland water area owned by the whole people for aquaculture according to law, such sea area or inland water area may be contracted by individuals or the collective within the statutory period of use. Any collectively owned inland water area may be contracted by the collective economic organization to individuals or the collective for aquaculture. The contract issuer and the contractor shall enter into a contract. Administrative departments for fishery of local governments at or above the county level shall strengthen guidance and service for contracting. Article 14 The right to use any sea area or inland water area for aquaculture, or the contract and management right acquired according to law shall be protected by law, and may be transferred or leased according to law. If any collectively owned inland water area for aquaculture, or sea area or inland water area owned by the whole people whose right of aquaculture has been granted is acquired for public interest, the relevant formalities shall be settled and reasonable compensation granted in accordance with the authorities and procedures stipulated in the applicable laws and regulations. Specific compensation measures shall be developed by the provincial government. Article 23 Oceanic fishing is encouraged. Local governments at or above the county level in coastal areas shall provide financial, material and technical support. Article 24 A fishing quota system shall be practiced on the principle that the amount of fishing shall be less than the growth of fishery resources. Article 25 Entities and individuals with fishery vessels must apply for vessel registration with regulators of fishery affairs and fishery harbors, pass the inspection of the fishery vessel inspection department, receive a certificate of inspection of fishery vessel, and obtain a book of signatory navigation before sailing. Article 26 All entities and individuals dealing with fishery shall apply for a fishing license with administrative departments for fishery of local government at or above the county level according to law, and observe the type of work, location, time limit, fishing gear quantity and fishing quota specified in such license. Anyone who has not obtained a fishing license shall not deal with fishing. 4.2.5 Notice of the Fujian Provincial Government on Issuing the Measures of Compensation for the Use of Sea Areas of Fujian Province Article 2 A holder of the right to use sea areas referred to herein shall mean any entity or individual who has obtained sea area use certificate according to law, or any entity or individual who has used a sea area for aquaculture from before the promulgation of the Law of the PRC on the Administration of Sea Areas on January 1, 2002 to date but has not obtained a sea area use certificate. Article 4 Administrative departments of marine affairs of governments at or above the county level in coastal areas shall supervise and manage the recovery and compensation of the right to use sea areas adjacent to their jurisdictions. Article 6 Sea area use may be compensated for in cash, or by replacement of the 22 right to use sea areas or equity holding according to law. Article 7 For the recovery of the right to use sea areas, sea area compensation fees, and compensation fees for offspring and attachments shall be paid. Article 8 Sea area compensation fees shall be equal to the sea area compensation rate multiplied by the sea area grading factor. Sea area compensation rates and sea area grading factors shall be fixed by the provincial government based on the type of sea area use, the value of the right to use sea areas, the demand for sea area use, the degree of impact on the marine environment, the level of the national economy and social affordability. Article 9 The amount of sea area compensation shall be agreed on by the government recovering the right to use sea areas and the holder of the right to use sea areas, but shall not be less than the rate specified in Article 8 above. Article 10 For anyone who has used a sea area for aquaculture from before the promulgation of the Law of the PRC on the Administration of Sea Areas on January 1, 2002 to date but has not obtained a sea area use certificate, sea area compensation fees shall be granted at 80% of the rate specified herein. Anyone who has not applied for a sea area use certificate within 6 months from the effective date hereof shall not be compensated. Article 11 Seedling compensation fees shall include the cost of the offspring and a reasonable value of unfinished products. Compensation fees for sea area attachments shall be compensated for at replacement cost and by reference to newness. The amount of compensation for offspring and sea area attachments shall be agreed on by the government approving sea area use and the holder of the right to use sea areas according to paragraphs 1 and 2 of this Article 11, or determined by a qualified appraisal agency appointed jointly by them. Article 13 The right to use sea areas shall be recovered as follows: (1) publishing an announcement for recovering the right to use sea areas; (2) going through registration of compensation for sea area use; (3) signing a compensation agreement for sea area use; (4) paying compensation fees for sea area use; (5) recovering the right to use sea areas. Article 14 In case of recovery of the right to use sea areas, county-level governments in coastal areas shall publish an announcement in the townships and villages adjacent to such sea area to identify subjects of compensation. Such announcement shall include: (1) the location, boundary and size of the sea area to be recovered. (2) the right to use the sea area to be recovered; (3) the use of the sea area to be recovered; (4) the location for going through the compensation registration formalities; (5) entity recovering the right to use sea areas; (6) prohibitions and other matters to be announced. The period of announcement shall be 15 days; from the date of publication of the announcement, no entity or individual shall rush grow or build sea area attachments within the declared sea area. Administrative departments of marine affairs of county governments in coastal 23 areas shall determine subjects of compensation and the use of sea areas by them within 10 days of expiry of the announcement, and disclose such information in the townships and villages adjacent to such sea area for 5 days. Article 16 The original government approving sea area use shall sign a compensation agreement for sea area use with the subject of compensation (the original holder of the right to use sea areas). Article 21 Before recovering the right to use sea areas, governments at or above the county level in coastal areas shall ensure that the original holder of the right to use sea areas is compensated according to the compensation agreement for sea area use. Compensation fees for sea area use shall be paid timely and fully. No entity or individual misappropriate compensation fees for sea area use. 4.2.6 Compensation Rates for Land Acquisition and House Demolition of Putian City 6. The compensation rates for sea use fixed by the ocean and fishery department shall apply to sea areas for which such department files an application for sea use. The compensation rates for the acquisition of water surfaces and tidal flats are as follows: 5,000 yuan /mu for razor clam,5,000 yuan/mu for hard clam, 5,625 yuan/mu for oyster, Kelps in sea areas in front of wharves shall be compensated for at 5,625 yuan/mu, which is the same as the compensation rate for oysters, while that for shrimps is 6,250 yuan/mu (shrimp ponds and other attachments shall be otherwise appraised at replacement cost). 4.2.7 Bank Policy on Involuntary Resettlement 10. The implementation of resettlement activities is linked to the implementation of the investment component of the project to ensure that displacement or restriction of access does not occur before necessary measures for resettlement are in place. For impacts covered in para. 3(a) of this policy, these measures include provision of compensation and of other assistance required for relocation, prior to displacement, and preparation and provision of resettlement sites with adequate facilities, where required. In particular, taking of land and related assets may take place only after compensation has been paid and, where applicable, resettlement sites and moving allowances have been provided to the displaced persons. For impacts covered in para. 3(b) of this policy, the measures to assist the displaced persons are implemented in accordance with the plan of action as part of the project. 15. Criteria for Eligibility. Displaced persons may be classified in one of the following three groups: (a) those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); (b) those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets—provided that such claims are recognized under the laws of the country or become recognized through a process identified in the resettlement plan; and (c) those who have no recognizable legal right or claim to the land they are occupying. 24 4.3 Policies and Compensation Rates of the Project For the Project, the qualification identification criteria, property appraisal rates and compensation rates stipulated in the applicable policies shall not be varied without the approval of the Bank. 4.3.1 Policies of the Project According to the above RPF, the objective of the Project’s resettlement policies is to minimize negative impacts from the occupation of sea areas, compensate for seedlings of the affected population at a rate not less than annual net output value and for affected attachments at a rate not less than replacement cost, and assist them in their efforts to improve their living standard or at least to restore it. The policies of the Project on sea area withdrawal are as follows:  Notification in advance Such notice includes the project name, scope of construction, date of relocation and implementation period. One year before project commencement, project information has been publicized by means of television, broadcast, newspaper, website and posting, and the town government and the AHs have been notified in the form of open letter or notice in order to obtain their understanding and support, and minimize their losses. The period of announcement shall be 15 days; from the date of release of the announcement, no entity or individual shall cultivate or build any sea attachment within the sea area covered by the announcement.  Reasonable compensation The compensation rates of other ongoing projects in the project area will be used as a reference for the Project. The local ocean and fishery bureau, government departments concerned, project owner, MBHAB, FPMO and appraisal agency will appraise the impacts on the AHs, develop compensation and resettlement programs, and finally enter into compensation and resettlement agreements with the AHs.  Other assistance measures (1) The project owner and the PMO will provide employment information (2-3 times/year) together with the labor and social security departments of Putian City and Xiuyu District, and give free skills training to the AHs (2-4 times/year) from project commencement to help them switch to other industries, and restore their production and income as soon as possible. (2) Eligible fishermen may participate in endowment insurance according to Hui’an County’s regulations on new-type rural endowment insurance (new rural insurance for short). 4.3.2 Compensation rates Sea area withdrawal under the Project affects a sea area of 7,774.39 mu in Dongzhuang Town, Xiuyu District, Putian City, including 6,825.91 mu of aquaculture water surface and 948.48 mu of non aquaculture water surface . Since this will affect the aquaculture and other productive activities of the AHs, they should be compensated reasonably. The compensation rates for sea area withdrawal of the Project are based on the Land Administration Law of the PRC, the Fisheries Law of the PRC, the Law of the 25 PRC on the Administration of Sea Areas, the Notice of the Fujian Provincial Government on Issuing the Measures of Compensation for the Use of Sea Areas of Fujian Province, and the Notice on the Compensation Rates for Land Acquisition and House Demolition of Putian City. The Notice of the Fujian Provincial Government on Issuing the Measures of Compensation for the Use of Sea Areas of Fujian Province stipulates that households affected by sea area withdrawal in the project area shall be compensated. (1) Sea area compensation fees: According to the Notice of the Fujian Provincial Government on Issuing the Measures of Compensation for the Use of Sea Areas of Fujian Province, anyone who has not applied for a sea area use certificate within 6 months from the effective date of these Measures shall not be compensated. No aquaculture household in the project area has obtained a certificate of the right to use sea areas, and has not applied for such certificate within 6 months from the effective date of the Measures of Compensation for the Use of Sea Areas of Fujian Province (May 1, 2008), so no sea area compensation fees will be paid. According to the interviews with the Putian Municipal Ocean & Fishery Bureau, the Dongzhuang Town Government and the village committees concerned, the project area falls into the planned range of sea use2. In addition, no aquaculture household affected by the Project has applied for a certificate of the right to use sea areas within 6 months from the effective date of the Measures of Compensation for the Use of Sea Areas of Fujian Province. Therefore, these households will be compensated for seedlings and aquaculture facilities only. (2) Compensation fees for seedlings and aquaculture facilities: The compensation rates for sea area withdrawal specified in the Compensation Rates for Land Acquisition and House Demolition of Putian City (PMG [2011] No.27) are as follows: 5,000 yuan/mu for razor clam seedlings and aquaculture facilities, 5,000 yuan/mu for hard clam seedlings and aquaculture facilities, 5,625 yuan/mu for oyster and kelp seedlings, and aquaculture facilities, 6,250 yuan/mu for shrimps, and 3,000 yuan/mu for shrimp ponds3. During the implementation of the RAP, the project owner should consult with the Putian Municipal Ocean & Fishery Bureau, and the affected town, village committees and households. See Table 4-1. Table 4-1 Compensation Rates for Sea Area Withdrawal of the Project Seedlings Facilities Item Unit compensation compensation( Remarks (yuan) yuan) razor mu 5,000 clam Including sand filling and leveling of Hard tidal flats mu 5,000 clam Oyster mu 5,625 Including facilities kelp mu 5,625 2 According to the oceanic functional zoning of Meizhou Bay, the ocean and fishery department has not granted the right to use local marine and tidal-flat resources to any collective, fishery production organization or individual in the project area. 3 In practice, the final compensation rate for shrimp ponds will be based on the replacement costs of productive materials on the date of compensation, but will not be lower than the above rate. 26 Seedlings Facilities Item Unit compensation compensation( Remarks (yuan) yuan) Shrimp mu 6,250 3000 mainly facilities are shrimp ponds 27 5 Income Restoration Measures for APs The income and livelihood restoration programs and measures of the Project have been developed in consultation with the town government, village committees concerned and APs in order to protect the interests of the APs. 5.1 Objective of Resettlement The objective of resettlement of the Project is to ensure that the APs receive full compensation for their losses, reasonable resettlement and effective restoration measures, so that they can share the benefits of the Project, and their income level and living standard are improved or at least restored to pre-project levels in real terms. The income level of vulnerable groups is higher than the poverty line of Fujian Province and not less than the pre-Project level. 5.2 Impact Analysis of and Restoration Program for Sea Area Withdrawal Sea area withdrawal involves a sea area of 7,774.39 mu, including 6,825.91 mu of aquaculture water surface and 948.48 mu of non aquaculture water surface, affecting 1,631 households with 8,725 persons, and involving neither house demolition nor land acquisition. The affected households are in Shiqian Village (including 11 village groups), Daxiang Village (including 11 village groups), Shiwei Village (including 10 village groups) and Shitou Village (including 4 village groups), Dongzhuang Town, Xiuyu District. 5.2.1 Impact Analysis of Sea Area Withdrawal Through key informant and household interviews, it is learned that Dongzhuang Town’s private economy is developed, and most young adult laborers deal with economic activities related to medical care, pharmaceutics, timber and stone sculpture nationwide. The AHs’ main income sources are outside employment and doing business, and tidal-flat aquaculture incomes accounts for a low proportion (see Table 3-2). Although the per capita aquaculture area of the APs is high, losses to aquaculture income are high (especially Shiwei and Shitou Villages), but aquaculture is no longer the main source of income. In general, aquaculture income accounts for about 8.52% of household income in the 4 villages. Therefore, though sea area withdrawal will result in some losses to the affected village groups and the AHs temporarily, the overall income loss rate is low. In addition, some livelihood restoration programs and measures will be taken for key AHs except cash compensation in consultation with the PMO, project owner, government agencies concerned, village committees concerned and representatives of the Aps. 1. Impact analysis of village groups (1) Losses of aquaculture sea area Sea area withdrawal affects tidal-flat aquaculture in Shiqian, Daxiang, Shiwei and Shitou Villages in Dongzhuang Village, including 555 households with 2,915 persons and an aquaculture area of 866.41 mu in Shiqian Village, with a loss rate of 28 aquaculture area of 78.76%; 379 households with 1,820 persons and an aquaculture area of 735.41 mu in Daxiang Village, with a loss rate of aquaculture area of 53.1%; 521 households with 3,048 persons and an aquaculture area of 3,379.31 mu in Shiwei Village, with a loss rate of aquaculture area of 93.2%; and 176 households with 942 persons and an aquaculture area of 1,844.78 mu in Shitou Village, with a loss rate of aquaculture area of 99.54%. Sea area withdrawal affects Shiwei and Shitou Villages more seriously, and Groups 1-4 of Daxiang Village most slightly, where these 4 groups have a loss rate of aquaculture area of 13.79% only. Due to the construction of the Project, most of the aquaculture area of the 4 villages will be lost,and the rate is higher. However, since aquaculture is not the main income source of the 4 villages, sea area withdrawal will not affect the village economy greatly. See Table 5-1. (2) Losses of aquaculture income Generally, sea area withdrawal affects aquaculture activities in the 4 villages greatly. The main products of aquaculture of 4 villages are kelp, hard clam and oyster, there are small quantities of shrimp ponds in Daxiang, Shiwei and Shitou Villages, and a small quantity of sea clam in Shiwei Village. Based on interviews with the Putian Municipal and Xiuyu District Ocean & Fishery Bureaus, Dongzhuang Town Government, affected village committees and AHs, the net output values per mu of different aquaculture products in the project area in 2011 are roughly as follows: 2,200 yuan/mu of kelp, 2,200 yuan/mu of oyster, 1,800 yuan/mu of hard clam and razor clam, and 3,200 yuan/mu of shrimp. Based on the above values and the lost aquaculture sea area of each village, the income losses of different village groups are shown in Table 5-2, where: All losses of aquaculture products in Shiqian Village amount to 1,846,100 yuan, in which Group 10 and Group 11 suffer from the maximum and minimum losses of 20,3000 yuan and 113,000 yuan, accounting for 10.9% and 6.12% of the village’s total losses. All losses of aquaculture products in Daxiang Village amount to 1,658,200 yuan, in which Group 8 and Groups 1-4 suffer from the maximum and minimum losses of 261,800 yuan and 40,000 yuan, accounting for 15.78% and 2.4% of the village’s total losses. All losses of aquaculture products in Shiwei Village amount to 7,213,800 yuan, in which Group 8 and Group 6 suffer from the maximum and minimum losses of 822,400 yuan and 538,400 yuan, accounting for 11.4% and 7.4%% of the village’s total losses. All losses of aquaculture products in Shitou Village amount to 3,766,000 yuan, in which Group 1 and Group 4 suffer from the maximum and minimum losses of 1,000,000 yuan and 899,600 yuan, accounting for 26.55% and 23.88% of the village’s total losses. The above data shows that since Shiwei and Shitou Villages are affected more by sea area withdrawal (see Table 5-1), they suffer more losses of aquaculture income (see Table 5-2). (3) Income losses Due to the varying economic levels of the affected villages, they differ in percentage of aquaculture income losses to gross income are different and degree of impact. See Table 5-3. 29 Among the affected villages: (1) Shiwei Village has the highest average loss rate of aquaculture income of 7.92%, varying from Group 4 (8.54%) to Group 7 (6.8%). (2) Shitou Village’s average loss rate of aquaculture income is 6.09%, varying from Group 1 (6.61%) to Group 4 (5.65%). (3) Shiqian and Daxiang Villages have an average loss rate of aquaculture income of below 3%. The Project is located in Dongzhuang Town, Xiuyu District. There are tens of thousands of people dealing with medical services, and the production and marketing of pharmaceutics and medical apparatus in Xiuyu District, making the district influential in China’s medical care and medicine industry. In 2011, over 80% of private hospitals nationwide are founded by people from the town, with total assets of 36 billion yuan, an annual turnover of 303 billion yuan and a total workforce of 630,000. There are over 10,000 enterprises dealing with medical services run by people from Xiuyu District throughout the country, in which 93% are run by people from Dongzhuang Town. There are 500 manufacturers of pharmaceutics and medical apparatus run by people from Xiuyu District, in which 80% are run by people from Dongzhuang Town. These 500 enterprises have total assets of 2.5 billion yuan, an annual turnover of 5 billion yuan and a total workforce of 50,000. With the inclusion of Meizhou Bay in the state’s West Coast Development Plan, the sea area available for household aquaculture will be limited, and most AHs deal with economic activities related to medical apparatus, pharmaceutics and timber. Therefore, sea area withdrawal will affect the income of the affected villages slightly in general. 2. Analysis of AHs (1) Losses of aquaculture sea area For the 1,631 AHs, only 4 AHs have a loss rate of aquaculture area of 11%-30%, accounting for 0.25%; 108 AHs have a loss rate of aquaculture area of 31%-50%, accounting for 6.62%; 269 AHs have a loss rate of aquaculture area of 51%-70%, accounting for 16.49%; 535 AHs have a loss rate of aquaculture area of 71%-90%, accounting for 32.8%; and 715 AHs have a loss rate of aquaculture area of over 90%, accounting for 43.84%. See Table 5-4. It can be seen that sea area withdrawal affects the AHs’ aquaculture activities greatly. (2) Losses of aquaculture income Through an estimate of the AHs’ losses of aquaculture income, among the 1,631 AHs, 878 AHs have an aquaculture income loss of 5,000 yuan, accounting for 53.83%; 52 AHs have an aquaculture income loss of 5,000-10,000 yuan, accounting for3.19%; 525 AHs have an aquaculture income loss of 10,000-15,000 yuan, accounting for 32.19%; no AH has an aquaculture income loss of 15,000-20,000 yuan; 176 AHs have an aquaculture income loss of 20,000-25,000 yuan, accounting for 10.79%. See Table 5-5. 30 Table 5-1 Analysis of Lost Aquaculture Area in Sea Area Withdrawal (Village Groups) Before sea area withdrawal Per capita After sea area withdrawal Per capita Loss of aquaculture area aquaculture aquaculture Percentage Percentage Loss rate Village Group Aquaculture area before Aquaculture area after of of of Households Population Households Population area (mu) withdrawal area (mu) withdrawal households population aquacultur (mu) (mu) (%) (%) e area (%) Group 82 410 95 0.23 55 265 91 0.01 67.07% 64.63% 95.79% 1 Group 65 325 105 0.32 40 216 79 0.08 61.54% 66.46% 75.24% 2 Group 82 422 118 0.28 45 228 87 0.07 54.88% 54.03% 73.73% 3 Group 82 412 98 0.24 60 318 86 0.03 73.17% 77.18% 87.76% 4 Group 85 418 90 0.22 55 285 63 0.06 64.71% 68.18% 70.00% 5 Group 81 418 125 0.30 60 325 83.4 0.10 74.07% 77.75% 66.72% 6 Shiqian Group 78 420 106 0.25 50 275 82 0.06 64.10% 65.48% 77.36% 7 Group 76 410 104 0.25 50 274 81 0.06 65.79% 66.83% 77.88% 8 Group 50 275 85 0.31 45 225 67 0.07 90.00% 81.82% 78.82% 9 Group 75 368 110 0.30 60 329 93.3 0.05 80.00% 89.40% 84.82% 10 Group 70 362 64 0.18 35 175 53.71 0.03 50.00% 48.34% 83.92% 11 Subtot 826 4240 1100 0.26 555 2915 866.41 0.06 67.19% 68.75% 78.76% al Group 198 753 145 0.19 4 25 20 0.17 2.02% 3.32% 13.79% s 1-4 Daxiang Group 52 253 140 0.55 42 203 91.3 0.19 80.77% 80.24% 65.21% 5 31 Group 65 298 130 0.44 55 268 103.11 0.09 84.62% 89.93% 79.32% 6 Group 68 318 175 0.55 60 306 114 0.19 88.24% 96.23% 65.14% 7 Group 75 365 185 0.51 52 258 113 0.20 69.33% 70.68% 61.08% 8 Group 68 363 265 0.73 50 240 100 0.45 73.53% 66.12% 37.74% 9 Group 68 328 245 0.75 58 265 97 0.45 85.29% 80.79% 39.59% 10 Group 65 338 100 0.30 58 255 97 0.01 89.23% 75.44% 97.00% 11 Subtot 659 3016 1385 0.46 379 1820 735.41 0.22 57.51% 60.34% 53.10% al Group 57 335 425 1.27 55 325 365 0.18 96.49% 97.01% 85.88% 1 Group 58 332 319 0.96 54 328 306.5 0.04 93.10% 98.80% 96.08% 2 Group 56 325 350 1.08 52 315 327.34 0.07 92.86% 96.92% 93.53% 3 Group 63 356 405 1.14 56 328 369.47 0.10 88.89% 92.13% 91.23% 4 Group 62 376 405 1.08 57 321 379 0.07 91.94% 85.37% 93.58% 5 Shiwei Group 64 286 288 1.01 40 232 258 0.10 62.50% 81.12% 89.58% 6 Group 52 302 322 1.07 45 225 300 0.07 86.54% 74.50% 93.17% 7 Group 63 385 402 1.04 60 355 384 0.05 95.24% 92.21% 95.52% 8 Group 52 328 345 1.05 51 316 339 0.02 98.08% 96.34% 98.26% 9 Group 53 323 365 1.13 51 303 351 0.04 96.23% 93.81% 96.16% 10 32 Subtot 580 3348 3626 1.08 521 3048 3379.31 0.07 89.83% 91.04% 93.20% al Group 77 398 462 1.16 46 249 460 0.01 59.74% 62.56% 99.57% 1 Group 72 382 462 1.21 45 238 460 0.01 62.50% 62.30% 99.57% 2 Group Shitou 68 379 475 1.25 43 235 472.97 0.01 63.24% 62.01% 99.57% 3 Group 72 388 454.26 1.17 42 220 451.81 0.01 58.33% 56.70% 99.46% 4 Subtot 289 1547 1853.26 1.20 176 942 1844.78 0.01 60.90% 60.89% 99.54% al Total 2354 12151 7964.26 0.66 1631 8725 6825.91 0.01 69.29% 71.80% 85.71% Table 5-2 Analysis of Lost Income in Sea Area Withdrawal (Village Groups) Kelp Oyster Hard clam Shrimp pond Sea clam Village Group Total loss Area Loss Area Loss Area Loss Area Loss Area Loss Group 1 48.00 10.56 25.00 5.50 18.00 3.24 / / / / 19.30 Group 2 42.00 9.24 25.00 5.50 12.00 2.16 / / / / 16.90 Group 3 39.00 8.58 32.00 7.04 16.00 2.88 / / / / 18.50 Group 4 52.00 11.44 24.00 5.28 10.00 1.80 / / / / 18.52 Group 5 / / 45.00 9.90 18.00 3.24 / / / / 13.14 Group 6 45.40 9.99 24.00 5.28 14.00 2.52 / / / / 17.79 Shiqian Group 7 52.00 11.44 15.00 3.30 15.00 2.70 / / / / 17.44 Group 8 54.00 11.88 15.00 3.30 12.00 2.16 / / / / 17.34 Group 9 / / 55.00 12.10 12.00 2.16 / / / / 14.26 Group 10 48.30 10.63 35.00 7.70 10.00 1.80 / / / / 20.13 Group 11 / / 40.71 8.96 13.00 2.34 / / / / 11.30 Subtotal 380.70 83.75 335.71 73.86 150.00 27.00 / / / / 184.61 Groups 1-4 5.00 1.10 5.00 1.10 10.00 1.80 / / / / 4.00 Daxiang Group 5 35.00 7.70 34.00 7.48 22.30 4.01 / / / / 19.19 Group 6 45.00 9.90 38.11 8.38 15.00 2.70 5.00 1.60 / / 22.58 33 Group 7 65.00 14.30 18.00 3.96 16.00 2.88 15.00 4.80 / / 25.94 Group 8 45.00 9.90 38.00 8.36 12.00 2.16 18.00 5.76 / / 26.18 Group 9 35.00 7.70 45.00 9.90 10.00 1.80 10.00 3.20 / / 22.60 Group 10 35.00 7.70 12.00 2.64 10.00 1.80 40.00 12.80 / / 24.94 Group 11 35.00 7.70 38.00 8.36 24.00 4.32 / / / / 20.38 Subtotal 300.00 66.00 228.11 50.18 119.30 21.47 88.00 28.16 / / 165.82 Group 1 45.00 9.90 265.00 58.30 55.00 9.90 / / / / 78.10 Group 2 85.00 18.70 156.50 34.43 50.00 9.00 15.00 4.80 / / 66.93 Group 3 85.00 18.70 175.00 38.50 55.00 9.90 12.34 3.95 / / 71.05 Group 4 125.00 27.50 188.47 41.46 56.00 10.08 / / / / 79.04 Group 5 35.00 7.70 292.00 64.24 52.00 9.36 / / / / 81.30 Shiwei Group 6 100.00 22.00 85.00 18.70 53.00 9.54 / / 20.00 3.60 53.84 Group 7 95.00 20.90 95.00 20.90 50.00 9.00 / / 60.00 10.80 61.60 Group 8 50.00 11.00 278.00 61.16 56.00 10.08 / / 0.00 0.00 82.24 Group 9 65.00 14.30 217.00 47.74 57.00 10.26 / / 0.00 0.00 72.30 Group 10 115.00 25.30 180.00 39.60 56.00 10.08 / / 0.00 0.00 74.98 Subtotal 800.00 176.00 1931.97 425.03 540.00 97.20 27.34 8.75 80.00 14.40 721.38 Group 1 / / 220.00 48.40 180.00 32.40 60.00 19.20 / / 100.00 Group 2 / / 210.00 46.20 250.00 45.00 / / / / 91.20 Shitou Group 3 77.74 17.10 180.00 39.60 215.23 38.74 / / / / 95.44 Group 4 / / 215.81 47.48 236.00 42.48 / / / / 89.96 Subtotal 77.74 17.10 825.81 181.68 881.23 158.62 60.00 19.20 / / 376.60 Total 1558.44 342.86 3321.6 730.75 1690.53 304.30 175.34 56.11 80 14.40 1448.41 Table 5-3 Summary of Loss Rates of Aquaculture Income of Affected Village Groups Village Group Households Population AHs APs Gross income (0,000 yuan) Lost aquaculture income (0,000 yuan) Loss rate of aquaculture income (%) Group 1 82 410 55 265 799.50 19.30 2.41% Group 2 65 325 40 216 617.50 16.90 2.74% Shiqian Group 3 82 422 45 228 844.00 18.50 2.19% Group 4 82 412 60 318 803.40 18.52 2.31% Group 5 85 418 55 285 773.30 13.14 1.70% 34 Group 6 81 418 60 325 815.10 17.79 2.18% Group 7 78 420 50 275 840.00 17.44 2.08% Group 8 76 410 50 274 820.00 17.34 2.11% Group 9 50 275 45 225 536.25 14.26 2.66% Group 75 368 60 329 699.20 20.13 2.88% 10 Group 70 362 35 175 724.00 11.30 1.56% 11 Subtotal 826 4240 555 2915 8272.25 184.61 2.23% Groups 198 753 4 25 1807.20 4.00 0.22% 1-4 Group 5 52 253 42 203 556.60 19.19 3.45% Group 6 65 298 55 268 625.80 22.58 3.61% Group 7 68 318 60 306 667.80 25.94 3.88% Group 8 75 365 52 258 803.00 26.18 3.26% Daxiang Group 9 68 363 50 240 798.60 22.60 2.83% Group 68 328 58 265 721.60 24.94 3.46% 10 Group 65 338 58 255 743.60 20.38 2.74% 11 Subtotal 659 3016 379 1820 6724.20 165.82 2.47% Group 1 57 335 55 325 938.00 78.10 8.33% Group 2 58 332 54 328 830.00 66.93 8.06% Group 3 56 325 52 315 861.25 71.05 8.25% Group 4 63 356 56 328 925.60 79.04 8.54% Group 5 62 376 57 321 1052.80 81.30 7.72% Shiwei Group 6 64 286 40 232 743.60 53.84 7.24% Group 7 52 302 45 225 906.00 61.60 6.80% Group 8 63 385 60 355 1058.75 82.24 7.77% Group 9 52 328 51 316 902.00 72.30 8.02% Group 53 323 51 303 888.25 74.98 8.44% 10 35 Subtotal 580 3348 521 3048 9106.25 721.38 7.92% Group 1 77 398 46 249 1512.40 100.00 6.61% Group 2 72 382 45 238 1489.80 91.20 6.12% Shitou Group 3 68 379 43 235 1591.80 95.44 6.00% Group 4 72 388 42 220 1590.80 89.96 5.65% Subtotal 289 1547 176 942 6184.80 376.60 6.09% Total 2354 12151 1631 8725 30287.50 1448.41 4.78% Table 5-4 Analysis of Lost Aquaculture Area in Sea Area Withdrawal (Households) Lost aquaculture area Total 10% or less 11%-30% 31%-50% 51%-70% 71%-90% 91%-100% No. Village House Popu House Popu House Popu House Popu House Popu House Popu House Popu -holds -lation -holds -lation -holds -lation -holds -lation -holds -lation -holds -lation -holds -lation 1 Shiqian 0 0 0 0 0 0 115 610 385 2040 55 265 555 2915 2 Daxiang 0 0 4 25 108 505 154 767 55 268 58 255 379 1820 3 Shiwei 0 0 0 0 0 0 0 0 95 557 426 2491 521 3048 4 Shitou 0 0 0 0 0 0 0 0 0 0 176 942 176 942 5 Total 0 0 4 25 108 505 269 1377 535 2865 715 3953 1631 8725 Percentage of 6 0.00% 0.00% 0.25% 0.29% 6.62% 5.79% 16.49% 15.78% 32.80% 32.84% 43.84% 45.31% 100.00% 100.00% HHs / population Table 5-5 Analysis of Lost Income in Sea Area Withdrawal (Households) Losses of aquaculture income L L<5,000 5,000≤L<10,000 10,000≤L<15,000 15,000≤L<20,000 20,000≤L<25,000 Total No. Village Per cent Per cent Per cent Per cent Per cent Households Households Households Households Households Households (%) (%) (%) (%) (%) 1 Shiqian 555 100% / 0.00% / 0.00% / 0.00% / 0.00% 555 2 Daxiang 323 85% 52 13.72% 4 1.06% / 0.00% / 0.00% 379 3 Shiwei / 0.00% / 0.00% 521 100.00% / 0.00% / 0.00% 521 4 Shitou / 0.00% / 0.00% / 0.00% / 0.00% 176 100.00% 176 36 5 Total 878 53.83% 52 3.19% 525 32.19% / 0.00% 176 10.79% 1631 37 (3) Per capita income losses Due to the economic development and income level is Different among the affected village, And the structure of family income differences Between affected families, The proportion of the losses of aquaculture income in the total income of immigrant families are not the same，and Its impacts are different. In order to analysis the loss of family income affected by sea use rights withdrawal,The following will analysis the Per capita income losses rate of immigrant families by sub-village. Among the affected villages: (1) Shitou Village has the highest loss rate of per capita income of9.99% due to the great impact of sea area withdrawal on per capita aquaculture area. However, this village’s economy is developed, and the main income sources are medical apparatus, timber processing, jewelry and stone sculpture. (2) Shiwei Village has the second highest loss rate of 8.61%. (3) Shiqian and Daxiang Villages have a loss rate of per capita income of less than 5%. See Table 5-6. The private economy of Dongzhuang Town, Xiuyu District is developed, where most households deal with medical apparatus and pharmaceutics production and marketing, timber production and processing, jewelry and stone sculpture production, etc., and aquaculture income accounts for a low proportion to gross income, so the AHs rely on aquaculture to a low extent. In general, sea area withdrawal affects the AHs’ income slightly. Table 5-6 Summary of Loss Rates of Per Capita Income of Affected Villages Per capita Per capita Per capita Per loss of net income aquaculture capita Village Group Households Population aquaculture (0,000 income loss rate income yuan) (0,000 yuan) (%) (0,000 yuan) Group 1 55 265 1.95 0.1 0.07 3.73% Group 2 40 216 1.9 0.1 0.08 4.12% Group 3 45 228 2 0.1 0.08 4.06% Group 4 60 318 1.95 0.1 0.06 2.99% Group 5 55 285 1.85 0.1 0.05 2.49% Group 6 60 325 1.95 0.1 0.05 2.81% Shiqian Group 7 50 275 2 0.1 0.06 3.17% Group 8 50 274 2 0.1 0.06 3.16% Group 9 45 225 1.95 0.1 0.06 3.25% Group 10 60 329 1.9 0.1 0.06 3.22% Group 11 35 175 2 0.1 0.06 3.23% Subtotal 555 2915 1.95 0.1 0.06 3.25% Groups 4 25 2.4 0.2 0.16 6.67% 1-4 Group 5 42 203 2.2 0.15 0.09 4.30% Group 6 55 268 2.1 0.15 0.08 4.01% Group 7 60 306 2.1 0.15 0.08 4.04% Daxiang Group 8 52 258 2.2 0.15 0.10 4.61% Group 9 50 240 2.2 0.15 0.09 4.28% Group 10 58 265 2.2 0.15 0.09 4.28% Group 11 58 255 2.2 0.15 0.08 3.63% Subtotal 379 1820 2.2 0.15 0.09 4.14% Shiwei Group 1 55 325 2.8 0.3 0.24 8.58% 38 Per capita Per capita Per capita Per loss of net income aquaculture capita Village Group Households Population aquaculture (0,000 income loss rate income yuan) (0,000 yuan) (%) (0,000 yuan) Group 2 54 328 2.5 0.3 0.20 8.16% Group 3 52 315 2.65 0.3 0.23 8.51% Group 4 56 328 2.6 0.3 0.24 9.27% Group 5 57 321 2.8 0.3 0.25 9.05% Group 6 40 232 2.6 0.3 0.23 8.93% Group 7 45 225 3 0.3 0.27 9.13% Group 8 60 355 2.75 0.3 0.23 8.42% Group 9 51 316 2.75 0.3 0.23 8.32% Group 10 51 303 2.75 0.3 0.25 9.00% Subtotal 521 3048 2.75 0.3 0.24 8.61% Group 1 46 249 3.8 0.45 0.40 10.57% Group 2 45 238 3.9 0.4 0.38 9.83% Shitou Group 3 43 235 4.2 0.45 0.41 9.67% Group 4 42 220 4.1 0.45 0.41 9.97% Subtotal 176 942 4 0.45 0.40 9.99% Note: Only 4 households in Groups 1-4 of Daxiang Village are affected by sea area withdrawal, so the loss rate of per capita income is high. 5.2.2 Resettlement Modes and Income Restoration Programs It can be seen from the above analysis that although the affected village groups are affected relatively slightly, some households are still faced with the negative impact of losing part of aquaculture income. In order that the production level and living standard of the AHs are restored effectively, the government agencies concerned, the Dongzhuang Town Government and the village committees concerned have developed resettlement and income restoration measures. The AHs’ aquaculture income losses will be compensated in cash, and a range of resettlement programs are available to the AHs at their own option. See Table 5-7. Table 5-7 Expected Resettlement Modes of Households Affected by Sea Area Withdrawal Other expected resettlement mode* Cash Social security Affected Affected Job Skills Village compensation Endowment New rural households population placement training (%) insurance insurance (%) (%) for LEFs (%) (%) Shiqian 555 2915 100 5.40 100 8.23 34.31 Daxiang 379 1820 100 5.48 100 10.99 20 Shiwei 521 3048 100 6 100 4.92 11.48 Shitou 176 942 100 5 100 8.49 10.62 Total 1631 8725 100 5.73 100 7.68 25.79 Source: *socioeconomic survey Since the affected villages vary in economic level and degree of impact, the resettlement and income restoration measures have been developed based on the degree of impact, local characteristics and personal willingness. 1. Cash compensation 39 One-time cash compensation will be offered in the Project, and the village collectives will pay compensation fees for sea area withdrawal fully and timely to the AHs without withholding. During resettlement implementation, the project owner will compensate the AHs for their income losses pursuant to the Compensation Rates for Land Acquisition and House Demolition of Putian City (PMG [2011] No.27). See Table 4-1 for the compensation rates. 2. Income restoration programs Based on the expected resettlement modes of the AHs, and through adequate consultation with the Xiuyu District Ocean & Fishery Bureau, the village committees concerned and the AHs, the government agencies concerned, the Dongzhuang Town Government and the village committees concerned have developed resettlement and income restoration programs in accordance with the applicable state regulations and policies, and the Bank’s policy on involuntary resettlement in order to minimize the adverse impacts of sea area withdrawal on the AHs. A. Social security (1) Endowment insurance for land-expropriated farmers In order to ensure that LEFs’ long-term livelihoods are not affected greatly due to the loss of means of production, the Putian Municipal Government promulgated the Measures of Putian City for the Implementation of the Employment Training and Social Security of Land-expropriated Farmers in 2012, stipulating that eligible LEFs may apply for the endowment insurance for LEFs. According to the key informant interview with the Putian Municipal Human Resources and Social Security Bureau, the provincial government has not promulgated any policy or document on the endowment insurance for farmers affected by sea area withdrawal to date, but allows municipal governments to develop measures themselves. Since Putian City is preparing a pilot reform framework for urban-rural integration, the policy on the endowment insurance for farmers affected by sea area withdrawal has not been promulgated, but the endowment insurance for farmers affected by sea area withdrawal may be implemented by reference of the endowment insurance for LEFs. i. Participants: According to the Measures of Putian City for the Implementation the Employment Training and Social Security of Land-expropriated Farmers (PMGO [2012] No.111), subjects of employment training and social security for LEFs shall mean, in case of the acquisition of rural collective land by the government according to law, registered agricultural population whose per capita cultivated land after land acquisition is less than 30% of the per capita cultivated land of the local agricultural population in 2007, having attained 16 full years and having the contracting right to rural collective land since the issue of the Notice of the former Ministry of Labor and Security, and the Ministry of Land and Resources on Performing Tasks concerning the Social Security of Land-expropriated Farmers Practically on April 28, 2007. According to this policy, if the per capita tidal flat or aquaculture water surface area after sea area withdrawal is less than 30% of the average of the local agricultural population, affected fishermen may elect to participate in the local endowment insurance for LEFs voluntarily. According to the survey, the per capita aquaculture water surface area of Xiuyu District is 0.66 mu. After sea area withdrawal, 1,471 households with 7,692 persons in 40 the affected villages will have a per capita aquaculture water surface of 0.15 mu, lower than 30% of the per capita aquaculture water surface area of Xiuyu District (namely 0.198 mu). According to the policy, a registered agricultural population of 6,9544 in the project area may participate in endowment insurance for LEFs. ii. Measures endowment insurance According to the Measures of Putian City for the Implementation the Employment Training and Social Security of Land-expropriated Farmers (PMGO [2012] No.111), the measures for the endowment insurance for LEFs are as follows: 1) Any eligible LEF having attained 60 full years will receive pensions under the endowment insurance for LEFs from the county government (district government, administrative committee) on a monthly basis together with pensions under new rural insurance. 2) Eligible LEFs aged 16-59 years will be included directly in new rural insurance, and will receive pensions under the endowment insurance for LEFs from the county government (district government, administrative committee) on a monthly basis together with pensions under new rural insurance when attaining 60 full years. For LEFs aged 16-59 years having been converted into urban status in household registration, the local social security handling agency will include them in the basic endowment insurance for urban employees. 3) The pension rate under the endowment insurance for LEFs shall not be less than 90 yuan per capita per month. If the local minimum living security rate for farmers in the previous year is higher than 90 yuan, such rate shall apply. Within 3 months of approval of the compensation and resettlement program for land acquisition, each village (community) committee will calculate the cultivated area and remaining cultivated area of each LEF in the village (community) to identify subjects of the endowment insurance for LEFs. The list of participants will be discussed at the village congress and disclosed for one week, submitted by the village (community) to the town government (sub-district office) for review, and then to the local agriculture, and land and resources authorities for review, and finally submitted to the rural insurance handling agency under the local human resources and social security for approval. iii. Fund raising: According to the Measures of Putian City for the Implementation the Employment Training and Social Security of Land-expropriated Farmers (PMGO [2012] No.111), each county government (district government, administrative committee) shall establish special funds for the endowment insurance for LEFs. The main funding sources of endowment insurance are: 1) 30,000 yuan/mu for cultivated land acquired according to law since April 28, 2007; 2) 2% of the annual gross income of state-owned land transfer; 3) A subsidy of 8,000 yuan/mu of cultivated land acquired from provincial level public finance; 4) A certain percentage from the county government (district government, administrative committee); and 5) Any deficiency shall be provided by the annual fiscal budget of the county government (district government, administrative committee). Funds of the endowment insurance for LEFs shall be transferred to the local special fiscal account for endowment insurance funds at a time upon approval of land 4 In order to explain this better, the age structure of the affected population as at the time of the detailed measurement survey (May 2012) is used for analysis here. In practice, this number may be different. 41 acquisition, otherwise the human resources and social security department shall not issue a review opinion, and the land and resources department shall not handle the land acquisition approval formalities. iv. Benefit payment According to the Measures of Putian City for the Implementation the Employment Training and Social Security of Land-expropriated Farmers (PMGO [2012] No.111), provisions on the payment of benefits the endowment insurance for LEFs are as follows: 1) Subjects of the endowment insurance for LEFs shall receive endowment insurance benefits on a monthly basis from the month following the age of 60 full years. 2) Eligible LEFs shall go through the formalities for receiving endowment insurance benefits at the rural social security handling agency of the county government (district government, administrative committee) with their personal ID cards, and the rural social security handling agency of the county government (district government, administrative committee) will pay endowment insurance benefits from the next month on a monthly basis. 3) The county government (district government, administrative committee) shall establish an adjustment mechanism for endowment insurance benefits based on local economic and social development level, rural minimum living security rate and CPI, and the amount of adjustment shall be fixed by the human resources and social security department, and submitted to the county government (district government, administrative committee) for approval and implementation. 4) The rural social insurance handling agency shall establish a certification system for subjects of the endowment insurance for LEFs. v. Fund supervision According to the Measures of Putian City for the Implementation the Employment Training and Social Security of Land-expropriated Farmers (PMGO [2012] No.111), the measures for the supervision of endowment insurance funds are as follows: 1) The county government (district government, administrative committee) shall establish a special fiscal account for the endowment insurance for LEFs. 2) Endowment insurance funds shall be managed for income and expenditure, proofed against inflation or appreciated through depositing at bank or purchasing national debt, and exempt from taxes and frees. 3) Endowment insurance benefits shall be used for designated purposes, not be occupied, embezzled or retained by any organization or individual, and not used for any form of direct or venture capital investment or guarantee for any organization or individual. vi. Organizational management According to the Measures of Putian City for the Implementation the Employment Training and Social Security of Land-expropriated Farmers (PMGO [2012] No.111), the organizational management provisions for the endowment insurance for LEFs are as follows: 1) Subjects, items, rates and funds of social security for LEFs shall be included in the disclosure and public hearing procedures before the approval of land acquisition. When submitting the land acquisition materials for approval, the county government (district government, administrative committee) shall specify the above information. The county government (district government, administrative committee) shall ensure that during land acquisition, endowment insurance funds are transferred to the special 42 fiscal account of endowment insurance funds timely and fully. 2) Employment training and social security work for LEFs shall be organized and led by governments (management committees) at all levels in a unified manner as a priority. As the department in charge of employment training and social security for LEFs, the human resources and social security department shall be responsible for developing and implementing policies; the agriculture department shall review whether applicants have the contracting right of cultivated land and whether their remaining cultivated area meets the specified value, and identify eligible LEFs together with the land and resources, and public security departments; the land and resources department shall review the types of land, area, population and compensation involved in land acquisition, and provide information to the departments concerned; the finance department shall raise endowment insurance funds and adjusting funds, and ensure the disbursement of funds; the audit department shall audit and supervise social security funds for LEFs; the civil affairs department shall provide minimum living security rate and its adjustment, and information on five-guarantee households and households receiving minimum living security; township governments (sub-district offices) shall register and review eligible LEFs, and assist in policy communication and specific operations; village (community) committees shall register eligible LEFs, provide information on land contracting, and organize the employment training of LEFs and the disbursement of endowment insurance benefits. vii. Supplementary provisions According to the Measures of Putian City for the Implementation the Employment Training and Social Security of Land-expropriated Farmers (PMGO [2012] No.111), eligible LEFs may also be entitled to the endowment insurance for urban and rural residents, the medical insurance for urban and rural residents, minimum living security, social relief and other forms of social security. (2) New rural insurance According to the Measures for the Implementation of New-type Rural Endowment Insurance of Xiuyu District, Putian City, all rural residents having attained 16 full years (excluding students at school), and having not participated in the basic endowment insurance for urban workers may participate in new rural insurance voluntarily at their places of household registration. i. Participants: All rural residents having attained 16 full years (excluding students at school), and having not participated in the basic endowment insurance for urban workers may participate in new rural insurance voluntarily at their places of household registration. It is estimated that the whole agricultural population of 6,954 having attained 16 full years in the affected population of the Project may participate in new rural insurance. ii. Fund raising: According to the Measures for the Implementation of New-type Rural Endowment Insurance of Xiuyu District, Putian City, the new rural insurance fund consists of a personal contribution, a collective subsidy and a government subsidy. a) Personal payment: The payment rate shall be 100-1,200 yuan per annum, and 100 yuan shall make a payment level. Participants may choose payment level independently, and may choose a level of over 1,200 yuan voluntarily but not more 43 than 3 times the highest rate. Participants shall pay premiums on an annual basis in principle. b) Collective subsidization: Where conditions permit, a village (community) collective shall provide subsidies to participants, and the subsidization rate shall be determined democratically at a village (community) congress. c) Government subsidization: The government shall provide subsidies for premiums paid by the insured at the following rates: For the payment level of 100 yuan, the rate will be 30 yuan per person-year; for each higher level, the rate will be increased by 5 yuan; for the payment level of 500 yuan or above, the rate will be 50 yuan per person-year without exception. The policy also stipulates that for rural households receiving minimum living security and other groups in difficulty, the government will pay the lowest level of endowment insurance premiums at 100 yuan per person-year for them, and funds required will be shared by the municipal and district levels at 20:80. iii. Benefit payment and management: i) Participants who have participated in new rural insurance, have attained 60 full years, and have not participated in the basic endowment insurance for public institutions or urban workers may receive pensions on a monthly basis. ii) The pension on new rural insurance consists of a basic pension and a personal account pension, where the former shall be paid fully by the government at the prevailing rate of 55 yuan per capita per month, and the latter shall be the full balance of the personal account divided by 139. C. Employment According to the Regulations on Employment Services and Management (Decree No.28 of the Ministry of Labor and Social Security of the PRC), and the Measures of Putian City for the Implementation the Employment Training and Social Security of Land-expropriated Farmers (PMGO [2012] No.111), the APs will be eligible for public welfare job placement by the government or job placement by land-using industrial enterprises. In addition, the Dongzhuang Town Government and each village committee has an employment training assistant who releases employment and training information on a part-time basis, and is paid 240 yuan per month by the municipal labor and social security bureau. Training is mostly given around the Spring Festival, irregularly depending on training needs of different types of work. The specific resettlement modes include: (1) Public welfare job placement by the government According to the Measures of Putian City for the Implementation of the Employment Training and Social Security of Land-expropriated Farmers, 1) unemployed LEFs within the urban planning area shall be included in the uniform unemployment registration system and provided with employment services to promote their employment. Those of labor age may be subject to reemployment assistance. 2) All county governments (district governments, administrative committees) shall develop public welfare job opportunities actively to place LEFs having difficulty in employment and urge employers to employ LEFs first. Human resources and social security departments at or above the county level shall organize employment training for LEFs, and establish a sound public 44 employment service system that covers urban and rural areas according to the development plan developed by the government. The public employment service agency shall develop an employment service plan, implement employment support policies, organize employment service projects, provide employment services to laborers and employers, conduct research on the human resources market, and handle other matters related to employment promotion. The public employment service agency shall develop special employment assistance plans, and provide preferential support and assistance to subjects of employment assistance, including those having difficulty in employment and zero-employment households. Those having difficulty in employment placed to public welfare jobs shall be subsidized pursuant to state provisions. According to the interview with the Putian Municipal Labor and Social Security Bureau, subjects of employment assistance involved in the Project include laborers who can hardly get employment due to the loss of sea areas, physical illness or low skill level. These persons may apply for employment assistance with their village committees and the town government. According to the survey, subjects of employment assistance involved in the Project may enjoy the employment assistance policy, receive employment information from the government and attend skills training. In addition, 30% of service jobs created by the Project will be first made available to the APs, and the Putian Municipal and Xiuyu District Governments will also place the APs to additional municipal, landscaping, environmental sanitation, security and other public welfare jobs. (2) Job placement by the project owner During project implementation and operation, the PMO and the project owner should make at least 30% of unskilled jobs first available to the APs in consultation with the construction agency to create employment and income generation opportunities. Through the interview with the project owner, a large number of transport workers, drivers, security guards and clerks will be needed during the construction period of the Project, including about 500 transport workers, 80 drivers, 60 security guards and 50 clerks, 690 jobs in total. See Error! Reference source not found.. Moreover, the contract between the project owner and the construction agency should specify wage levels and labor contracts, e.g., wages paid to APs should not be less than the minimum wage standard of Putian City, the labor and social security department should urge the employer to sign labor contracts with laborers who have been employed, and inspect the contracting and employment of laborers regularly in order to protect their lawful rights and interests. Table 5-8 Estimated Labor Force Employed in the Project Job Workforce Minimum wage level (yuan/month) Transport worker 500 2,400 Labor Driver 80 2,800 demand of Security guard 60 2,000 the Project Clerk 50 2,000 Total 690 / D. Skills training The Interim Regulations of Putian City on the Employment Training and Social 45 Security of Land-expropriated Farmers stipulate that in labor age, LEFs having attained 16 full years but not attained 35 full years shall be key subjects of employment training, and LEFs having attained 35 full years but not attained 60 full years may elect to attend employment training. Moreover, training agencies shall set up disciplines (types of work) based on needs on the human resources market for trainees to choose from. LEFs who are able to work, unemployed and willing to work in labor age shall be key subjects of the employment training program for rural labor training and the Sunshine Training Project for Rural Labor Training of Putian City, and have priority in being trained and employed. According to the interview with the Putian Municipal Labor and Social Security Bureau, in order to promote the livelihood restoration of LEFs, the Xiuyu District Government would invest considerable funds annually to provide free skills training and employment referral services in cooperation with local vocational skills identification stations. The district government provides employment referral services for free to help LEFs get employed, holds job fairs regularly based on needs of employers, gives employment-oriented training in cooperation with schools, conducts free vocational skills identification based on job needs to promote employment, encourages urban and rural laborers, and early-stage entrepreneurs to attend business start-up training, guides enterprises to give skills training to employees, and offers training subsidies to individuals and enterprises. In order to improve the ability of the APs to get reemployed, a skills training program has been developed for the AHs in addition to cash compensation. According to the survey, farmers in Putian City have a small lper capita cultivated area, and mostly cultivate peanut, yam and vegetables. Due to the unique geographic and climatic conditions of the city, the project area is suitable for the cultivation of longan and other subtropical fruit trees. In the AHs, those dealing with aquaculture are mostly old farmers, and most young adult laborers work outside, or run private schools, medical apparatus or timber enterprises. The developed shoe-making industry there can absorb a large amount of female labor. In view of this, the scope of training will include agricultural and fishery skills, as well as the management of medical apparatus and timber enterprises, and shoe-making skills. Training is mostly given around the Spring Festival, irregularly depending on training needs of different types of work. In addition, the Dongzhuang Town Government and each village committee has an employment training assistant who releases employment and training information on a part-time basis, and is paid 240 yuan per month by the municipal labor and social security bureau. According to the training program (see Table 5-9), 3,100 men-times will be training over 3-5 years. Table 5-9 Summary of Planned Training Activities in the Project Budge General # of Frequency t Type of # of budget Funding Scope trainee (times Period (yuan/ training days (0,000 source s /year) man yuan) time) 46 Use and repair of Special farm 150 2 3 2012-2015 150 27 governmen implement t funds s Balanced Special fertilization Agricultural 150 1 3 2012-2015 100 18 governmen skills for skills t funds longan Special Greenhou governmen se t funds + 100 2 2 2012-2015 50 4 vegetable project cultivation training funds Special Sailor Fisher skills 60 5 2 2012-2013 500 12 governmen training t funds Special governmen Expertise t funds + on medical 200 3 3 2012-2015 300 72 project apparatus training funds Special governmen Expertise t funds + 200 3 3 2012-2015 200 48 on timber project training funds Special governmen Business t funds + managem 240 1 3 2012-2015 80 23.04 Employmen project ent t training for training rural labor funds transfer Special (Sunshine Poultry governmen Project) and t funds + 200 2 2 2012-2015 200 32 livestock project breeders training funds Special governmen Motorcycle t funds + 200 2 2 2012-2015 300 48 repair project training funds Special governmen Building t funds + 200 2 2 2012-2015 200 32 painting project training funds 47 Special Concrete governmen and t funds + 200 2 2 2012-2015 300 48 masonry project work training funds Special governmen t funds + Tailoring 200 3 4 2012-2015 150 48 project training funds Special governmen Shoe t funds + making 200 3 4 2012-2015 200 64 project skills training funds Special Jewelry governmen and stone t funds + 200 3 2 2012-2015 200 32 sculpture project skills training funds Special Business 200 1 1 2012-2013 50 2 governmen start-up t funds Special Disaster 100 1 2 2012-2014 50 3 governmen relief t funds Special Protection governmen of rights t funds + 200 1 1 2012-2013 50 2 Other and project interests training funds Disease Special prevent 100 1 3 2012-2014 50 4.5 governmen and t funds treatment Total / / / / / / 519.54 / The APs may attend skills training organized by the Putian Municipal Labor and Social Security Bureau voluntarily for free in order to improve labor and income-generating skills. Training funds will be from the government’s special funds and the Project’s training funds. 5.3 Income Restoration Programs for the Affected Villages In order to improve or at least restore the APs’ production level and living standard, except that the affected aquaculture facilities will be compensated for, the Dongzhuang Town Government, the village committees concerned and representatives of the APs have develop income restoration programs suited to each village’s practical situation on the basis of adequate consultation. 48 The 4 affected villages have a low proportion of fishery income, and the main income sources are outside employment and doing business. Funds required for the proposed restoration measures will be raised and the benefits therefrom distributed will be resolved by the village collective economic organizations at village congresses. The APs will share the benefits from such measures. 1. Shiqian Village The village has 826 households with 4,240 persons and 1,100 mu of aquaculture water surface, in which 555 households with 2,915 persons and 866.41 mu of aquaculture water surface will be affected by sea area withdrawal. The compensation rates for the acquisition of water surfaces and tidal flats are as follows: 2,200 yuan/mu for kelp, 2,200 yuan/mu for oyster and 1,800 yuan/mu for hard clam. The total amount of losses of aquaculture products of the village is 1,846,100yuan (see Table 5-1, Table 5-2 and Table 5-3). The income restoration programs include: (1) Cash compensation According to interviews with the village head and representatives of the APs, all AHs expect cash compensation for the following reason: According to the Opinions of the Fujian Provincial Government on the Implementation of Some Opinions of the State Council on Supporting Fujian Province to Accelerate the Construction of West Coast Economic Zone, the Outline of the 12th Five-year Plan for National Economic and Social Development of Fujian Province, and the Development Plan for the West Coast Urban Group (2008-2020), the onshore area of Meizhou Bay has been planned as a port-based industrial base with focus on petrochemicals and equipment manufacture, and the aquaculture function should be adjusted, including the project area. Second, according to the survey, fishery and aquaculture income accounts for a low proportion to the villagers’ income (5.13%), and their main income sources are outside employment and doing business. In the past decade, with the urbanization of the coastal area, and the development of ports and port-based industries, marine transport, port-based industries and marine tourism have become the pillar industries of the west coast area, and generated considerable job opportunities. It is estimated that the village will receive a total amount of compensation for sea area withdrawal of 4,779,806 yuan, 2.59 times of its losses. According to the survey, the village collective will not make any withdrawal from such compensation and will pay it fully to the AHs. According to the survey, the AHs will use the compensation for the following purposes: 1) 40% of the AHs will invest it in medial apparatus, timber processing and groceries, etc., and have always dealt with similar operations; 2) 20% will use it to buy vehicles to transport materials for construction sites or wharves; 3) 30% will use it to expand the cultivation of vegetables or longan, especially those with old members; and 4) 20% will invest it in children’s education. (2) Endowment insurance for land-expropriated farmers According to the relevant policy, eligible APs may participate in social security voluntarily. It is estimated that 2,546 persons in the village (agricultural population having attained 16 full years) are eligible for the endowment insurance for LEFs These APs will choose either old-age security or old-age subsidization voluntarily. (3) New rural insurance It is estimated that 2,546 persons in the village (agricultural population having 49 attained 16 full years) are eligible for new rural insurance. (4) Skills training It is estimated that 2,333 persons of labor age in the village may attend skills training voluntarily, covering medical expertise, driving skills, greenhouse vegetable cultivation, longan cultivation, building painting, concrete work, masonry work, shoe making skills and business start-up. (5) Employment During project implementation and operation, unskilled jobs will be offered to the APs. 2,333 laborers in the village may do unskilled jobs voluntarily. Half a month before employment, the project owner will provide employment information to the village committee for distribution to villagers. During employment, the construction agency will sign labor contractors with laborers and give necessary safety training to them. See Table 5-10. Table 5-10 Summary of Compensation and Income Restoration Measures of Shiqian Village Eligible Compensation and income Beneficiary No. population Remarks restoration measures population (estimated) 1 Cash compensation 2915 2915 Voluntary. Any eligible LEF having attained 60 full years will receive pensions; eligible LEFs Income restoration measures aged 16-59 years will be the endowment included directly in new rural 2 / 2546 insurance for LEFs insurance, and will receive pensions on a monthly basis together with pensions under new rural insurance when attaining 60 full years. Voluntary, for those having 3 New rural insurance / 2546 attained 16 full years Voluntary, for those aged 16-60 4 Skills training / 2333 years mainly Voluntary, for those aged 16-60 5 Job placement / 2333 years mainly 2. Daxiang Village The village has 659 households with 3,016 persons and 1,385 mu of aquaculture water surface, in which 379 households with 1,820 persons and 735.41 mu of aquaculture water surface will be affected by sea area withdrawal. The compensation rates for the acquisition of water surfaces and tidal flats are as follows: 2,200 yuan/mu for oyster and 3,200 yuan/mu for shrimp ponds. The total amount of losses of aquaculture products of the village is 1,658,200 yuan (see Table 5-1, Table 5-2 and Table 5-3). The income restoration programs include: (1) Cash compensation According to interviews with the village head and representatives of the APs, all AHs expect cash compensation for the following reason: According to the Opinions of the Fujian Provincial Government on the Implementation of Some Opinions of the State Council on Supporting Fujian Province to Accelerate the Construction of West Coast Economic Zone, the Outline of the 12th Five-year Plan for National Economic 50 and Social Development of Fujian Province, and the Development Plan for the West Coast Urban Group (2008-2020), the onshore area of Meizhou Bay has been planned as a port-based industrial base with focus on petrochemicals and equipment manufacture, and the aquaculture function should be adjusted, including the project area. Second, according to the survey, fishery and aquaculture income accounts for a low proportion to the villagers’ income (6.82%), and their main income sources are outside employment and doing business. In the past decade, with the urbanization of the coastal area, and the development of ports and port-based industries, marine transport, port-based industries and marine tourism have become the pillar industries of the west coast area, and generated considerable job opportunities. It is estimated that the village will receive a total amount of compensation for sea area withdrawal of 4,117,119 yuan, 2.48 times of its losses. According to the survey, the village collective will not make any withdrawal from such compensation and will pay it fully to the AHs. According to the survey, the AHs will use the compensation for the following purposes: 1) 43% of the AHs will invest it in medial apparatus, timber processing, jewelry, stone sculpture, building materials and groceries, etc.; 2) 25% will use it to buy vehicles to transport materials for construction sites or wharves; 3) 10% will use it to expand the cultivation of vegetables or longan, especially those with old members; and 4) 30% will invest it in children’s education. (2) Endowment insurance for land-expropriated farmers According to the relevant policy, eligible APs may participate in social security voluntarily. It is estimated that 923 persons in the village (agricultural population having attained 16 full years) are eligible for the endowment insurance for LEFs. These APs will choose either old-age security or old-age subsidization voluntarily. (3) New rural insurance It is estimated that 923 persons in the village (agricultural population having attained 16 full years) are eligible for new rural insurance. (4) Skills training It is estimated that849 persons of labor age in the village may attend skills training voluntarily, covering medical expertise, jewelry processing, stone sculpture, driving skills, greenhouse vegetable cultivation, longan cultivation, building painting, concrete work, masonry work, shoe making skills and business start-up. (5) Employment During project implementation and operation, unskilled jobs will be offered to the APs. 849 laborers in the village may do unskilled jobs voluntarily. Half a month before employment, the project owner will provide employment information to the village committee for distribution to villagers. During employment, the construction agency will sign labor contractors with laborers and give necessary safety training to them. See Table 5-11. Table 5-11 Summary of Compensation and Income Restoration Measures of Daxiang Village Eligible Compensation and income Beneficiary No. population Remarks restoration measures population (estimated) 1 Cash compensation 1820 1820 51 Eligible Compensation and income Beneficiary No. population Remarks restoration measures population (estimated) Voluntary. Any eligible LEF having attained 60 full years will receive pensions; eligible LEFs Income restoration measures aged 16-59 years will be the endowment included directly in new rural 2 / 923 insurance for LEFs insurance, and will receive pensions on a monthly basis together with pensions under new rural insurance when attaining 60 full years. Voluntary, for those having 3 New rural insurance / 923 attained 16 full years Voluntary, for those aged 16-60 4 Skills training / 849 years mainly Voluntary, for those aged 16-60 5 Job placement / 849 years mainly 3. Shiwei Village The village has 580 households with 3,348 persons and 3,626 mu of aquaculture water surface, in which 521 households with 3,048 persons and 3,379.31 mu of aquaculture water surface will be affected by sea area withdrawal. The compensation rates for the acquisition of water surfaces and tidal flats are as follows: 2,200 yuan/mu for kelp, 2,200 yuan/mu for oyster,1,800 yuan/mu for hard clam and razor clam, and 3,200 yuan/mu for shrimp ponds. The total amount of losses of aquaculture products of the village is 7,213,800 yuan (see Table 5-1, Table 5-2 and Table 5-3). The income restoration programs include: (1) Cash compensation According to interviews with the village head and representatives of the APs, all AHs expect cash compensation for the following reason: According to the Opinions of the Fujian Provincial Government on the Implementation of Some Opinions of the State Council on Supporting Fujian Province to Accelerate the Construction of West Coast Economic Zone, the Outline of the 12th Five-year Plan for National Economic and Social Development of Fujian Province, and the Development Plan for the West Coast Urban Group (2008-2020), the onshore area of Meizhou Bay has been planned as a port-based industrial base with focus on petrochemicals and equipment manufacture, and the aquaculture function should be adjusted, including the project area. Second, according to the survey, fishery and aquaculture income accounts for a low proportion to the villagers’ income (10.91%), and their main income sources are outside employment and doing business. In the past decade, with the urbanization of the coastal area, and the development of ports and port-based industries, marine transport, port-based industries and marine tourism have become the pillar industries of the west coast area, and generated considerable job opportunities. It is estimated that the village will receive a total amount of compensation for sea area withdrawal of 18,638,206 yuan, 2.58 times of its losses. According to the survey, the village collective will not make any withdrawal from such compensation and will pay it fully to the AHs. According to the survey, the AHs will use the compensation for the following 52 purposes: 1) 60% of the AHs will invest it in private hospitals, medial apparatus, timber processing, jewelry, stone sculpture and building decoration, etc.; 2) 10% will use it to buy vehicles to transport materials for construction sites or wharves; 3) 7% will use it to expand the cultivation of vegetables, especially those with old members; and 4) 16% will invest it in children’s education. (2) Endowment insurance for land-expropriated farmers According to the relevant policy, eligible APs may participate in social security voluntarily. It is estimated that 2,662 persons in the village (agricultural population having attained 16 full years) are eligible for the endowment insurance for LEFs. These APs will choose either old-age security or old-age subsidization voluntarily. (3) New rural insurance It is estimated that 2,662 persons in the village (agricultural population having attained 16 full years) are eligible for new rural insurance. (4) Skills training It is estimated that 2,439 persons of labor age in the village may attend skills training voluntarily, covering medical expertise, timber processing, jewelry, stone sculpture, driving skills, vegetable cultivation, building painting and shoe making skills. (5) Employment During project implementation and operation, unskilled jobs will be offered to the APs. 2,439 laborers in the village may do unskilled jobs voluntarily. Half a month before employment, the project owner will provide employment information to the village committee for distribution to villagers. During employment, the construction agency will sign labor contractors with laborers and give necessary safety training to them. See Table 5-12. Table 5-12Summary of Compensation and Income Restoration Measures of Shiwei Village Eligible Compensation and income Beneficiary No. population Remarks restoration measures population (estimated) 1 Cash compensation 3048 3048 Voluntary. Any eligible LEF having attained 60 full years will receive pensions; eligible LEFs Income restoration measures aged 16-59 years will be the endowment included directly in new rural 2 / 2662 insurance for LEFs insurance, and will receive pensions on a monthly basis together with pensions under new rural insurance when attaining 60 full years. Voluntary, for those having 3 New rural insurance / 2662 attained 16 full years Voluntary, for those aged 16-60 4 Skills training / 2439 years mainly Voluntary, for those aged 16-60 5 Job placement / 2439 years mainly 4. Shitou Village The village has 289 households with 1,547 persons and 1,853.26 mu of aquaculture water surface, in which 176 households with 942 persons and 1,844.78 53 mu of aquaculture water surface will be affected by sea area withdrawal. The compensation rates for the acquisition of water surfaces and tidal flats are as follows: 2,200 yuan/mu for kelp, 2,200 yuan/mu for oyster, 1,800 yuan/mu for hard clam and 3,200 yuan/mu for shrimp ponds. The total amount of losses of aquaculture products of the village is 3,766,000 yuan (see Table 5-1, Table 5-2 and Table 5-3). The income restoration programs include: (1) Cash compensation According to interviews with the village head and representatives of the APs, all AHs expect cash compensation for the following reason: According to the Opinions of the Fujian Provincial Government on the Implementation of Some Opinions of the State Council on Supporting Fujian Province to Accelerate the Construction of West Coast Economic Zone, the Outline of the 12th Five-year Plan for National Economic and Social Development of Fujian Province, and the Development Plan for the West Coast Urban Group (2008-2020), the onshore area of Meizhou Bay has been planned as a port-based industrial base with focus on petrochemicals and equipment manufacture, and the aquaculture function should be adjusted, including the project area. Second, according to the survey, fishery and aquaculture income accounts for a low proportion to the villagers’ income (11.25%), and their main income sources are outside employment and doing business. In the past decade, with the urbanization of the coastal area, and the development of ports and port-based industries, marine transport, port-based industries and marine tourism have become the pillar industries of the west coast area, and generated considerable job opportunities. It is estimated that the village will receive a total amount of compensation for sea area withdrawal of 9,863,619 yuan, 2.14 times of its losses. According to the survey, the village collective will not make any withdrawal from such compensation and will pay it fully to the AHs. According to the survey, the AHs will use the compensation for the following purposes: 1) 65% of the AHs will invest it in private hospitals, medial apparatus, building materials, timber processing, jewelry and stone sculpture, etc.; 2) 15% will use it to buy vehicles to transport materials for construction sites or wharves; 3) 9% will use it to expand the cultivation of vegetables, especially those with old members; and 4) 17% will invest it in children’s education. (2) Endowment insurance for land-expropriated farmers According to the relevant policy, eligible APs may participate in social security voluntarily. It is estimated that 823 persons in the village (agricultural population having attained 16 full years) are eligible for the endowment insurance for LEFs. These APs will choose either old-age security or old-age subsidization voluntarily. (3) New rural insurance It is estimated that 823 persons in the village (agricultural population having attained 16 full years) are eligible for new rural insurance. (4) Skills training It is estimated that 754 persons of labor age in the village may attend skills training voluntarily, covering business start-up, medical expertise, timber processing, jewelry, stone sculpture, driving skills, vegetable cultivation, building painting and shoe making skills. (5) Employment 54 During project implementation and operation, unskilled jobs will be offered to the APs. 754 laborers in the village may do unskilled jobs voluntarily. Half a month before employment, the project owner will provide employment information to the village committee for distribution to villagers. During employment, the construction agency will sign labor contractors with laborers and give necessary safety training to them. See Table 5-13. Table 5-13Summary of Compensation and Income Restoration Measures of Shitou Village Eligible Compensation and income Beneficiary No. population Remarks restoration measures population (estimated) 1 Cash compensation 942 942 Voluntary. Any eligible LEF having attained 60 full years will receive pensions; eligible LEFs Income restoration measures aged 16-59 years will be the endowment included directly in new rural 2 / 823 insurance for LEFs insurance, and will receive pensions on a monthly basis together with pensions under new rural insurance when attaining 60 full years. Voluntary, for those having 3 New rural insurance / 823 attained 16 full years Voluntary, for those aged 16-60 4 Skills training / 754 years mainly Voluntary, for those aged 16-60 5 Job placement / 754 years mainly 5.4 Restoration Program for Affected Vulnerable Groups According to the survey, 45 households with 100 persons fall into vulnerable groups, including households receiving minimum living security and five-guarantee households. In addition to the compensation policies hereunder, the PMO, the implementing agencies and the local governments will pay special attention to their resettlement. In addition to their production resettlement hereunder, they will receive certain assistance in improving production and living conditions. (1) Receiving subsidies from the civil affairs department According to the local policy, each member of a household receiving minimum living security receives 74 yuan per month, and each member of a five-guarantee household receives 200 yuan per month. Village collectives would grant a subsidy of 400-600 yuan to each household receiving minimum living security or five-guarantee household. (2) Endowment insurance for LEFs In addition to minimum living security benefits, vulnerable groups are also entitled to the endowment insurance for LEFs, new rural insurance, urban and rural medical insurance, and other forms of social security. Among the affected vulnerable groups, 46 old persons aged above 60 years may receive a benefit under the endowment insurance for LEFs of not less than 90 yuan per capita per month from the county 55 government (district government, administrative committee). (3) Priority in receiving job opportunities Laborers in vulnerable households will have priority in obtaining unskilled job opportunities during project implementation and operation, and public welfare jobs offered by the municipal and district governments. (4) Skills training Laborers in vulnerable households will receive skills training from departments at different levels in the project area, such as training on vegetable and longan cultivation, and driving skills, in order to obtain job opportunities. 5.5 Restoration Program for Affected Ethnic Minorities There are 10 members of an ethnic minority in the project area. They may participate in endowment insurance for LEFs or new rural insurance voluntarily, and provided with unskilled job opportunities and skills training with priority. 5.6 Protection of Women’s Rights and Interests During the preparation of the RAP, the survey team involved women actively in the detailed measurement survey, and solicited their ideas on income restoration. They support the Project, and think the Project will promote local economic development and generate more job opportunities. During resettlement, women’s rights and interests will be fully protected, and their key role in social, economic and resettlement activities will be given full play to. The measures for promoting women’s development in the Project include: (1) Enhancing women’s participation in the Project During the public consultation process of the Project, and at village or group meetings at which resettlement programs are discussed, women had the right to give speeches and make decisions, and not less than 30% of deputies were women. In addition, affected women will receive relevant information during resettlement, and may participate in public consultation and resettlement. (2) Priority in receiving job opportunities 30% of unskilled jobs and all office jobs in the Project will be first made available to affected women. (3) Skills training Skills training will be first made available to affected women to ensure that their economic status and income will not be affected. The time, location and scope of training will be determined in consultation with women. (4) Entering into compensation agreements The compensation agreement must be signed by the couple. During resettlement, a FGD of women was held to introduce resettlement policies and improve women’s awareness. (5) Receiving small-grant loans Since the Project involves sea area withdrawal, with the reduction of household aquaculture activities, women will have more time and effort for business start-up, and have priority in applying for small-grant loans. According to the Opinions of further Granting Small-grant Start-up Loans to 56 Women in Our Province issued by the provincial women’s federation and finance department, urban and rural women having independent legal capacity and within the statutory labor age are eligible for small-grant start-up loans for women; the maximum limit of small-grant start-up loans for women is 80,000 yuan, if two or more eligible women run an enterprise together, the handling bank may increase the maximum limit to 100,000 yuan; the term of small-grant start-up loans for women is usually not more than 2 years. 57 6 Resettlement Budget and Management 6.1 Financial Budget During resettlement, the Ocean & Fishery Bureaus of Putian City and Xiuyu District, the owner, the town government and village committees concerned will compensate the AHs reasonably on the basis of adequate consultation (see Table 6-1). Based on replacement cost, the resettlement costs of the Project are 58,344,600 yuan, which will be included in the total costs of the Project. Table 6-1 Budget of the Project No Uni Rate Amount of compensation Percenta Remar Item Qty. . t (yuan/unit) (0,000 yuan) ge ks Basic costs (compensat 1 3792.48 65.00% ion fees for seedlings) 1. Kelp mu 5625 1558.44 876.62 15.02% 1 1. Oyster mu 5625 3321.6 1868.40 32.02% 2 1. Hard clam mu 5000 1690.53 845.27 14.49% 3 1. Sea clam mu 5000 80 40.00 0.69% 4 1. Shrimp mu 6250 175.34 109.59 1.88% 5 1. Shrimp pond 3000 175.34 52.60 0.90% 6 6825.91 Survey, evaluation 2 / / 23.56% 893.51 15.31% and design costs 11.78 Training % of 3 / / 11.78% 446.75 7.66% costs basic costs 2.36% Administrat of 4 / / 2.36% 89.50 1.53% ive costs basic costs Subtotal of 5 / / / 5222.24 89.51% 1-4 Contingenci 6 es (10% of / / / 522.22 8.95% total costs) Estima 7 M&E costs / / / 90.00 1.54% te General 8 5834.46 100.00% budget 58 6.2 Fund Use Plan The owner will pay compensation fees timely and fully to the APs after consulting with them about compensation for income losses according to the implementation schedule of the Project. 6.3 Disbursement, Management and Monitoring of Funds 6.3.1 Disbursement of Funds In order that resettlement funds are paid to the APs timely and fully in accordance with the compensation policies specified in the RAP, resettlement funds will be disbursed on the following principles: (1) All costs related to resettlement will be included in the general budget of the Project; (2) Compensation fees will be paid before sea area use; (3) To ensure the successful implementation of resettlement, the Xiuyu District Finance Bureau, the PMO and MBHAB will ensure that all funds are paid timely and fully in coordination with the owner (FPPDC). The disbursement process of resettlement funds of the Project is as follows: FPPDC will pay compensation fees to the Dongzhuang Town Finance Office, which will deposit compensation fees in the designated bank or credit cooperative accounts opened by the village committees concerned. The bank or credit cooperative will pay compensation fees directly to the AHs. 6.3.2 Management and Monitoring of Funds (1) Resettlement funds must be disbursed in strict conformity with the compensation rates specified in the applicable state regulations on sea area acquisition and the policies in the RAP. (2) The PMO will appoint a consulting agency to conduct regular internal audits on the use of resettlement funds by the resettlement offices. (3) The municipal finance and audit departments have the power to monitor and audit the use of resettlement funds. (4) The external M&E agency will perform follow-up monitoring on the use of compensation fees by the AHs during external monitoring. 59 7 Organization 7.1 Agencies for Resettlement Actions The agencies responsible for resettlement planning, management, implementation and monitoring of the Project include:  Fujian Project Management Office (FPMO)  FPPDC  Putian Municipal Ocean & Fishery Bureau  Xiuyu District Ocean & Fishery Bureau  Dongzhuang Town Government  Village committees concerned  External M&E agency Figure 7-1 Organizational Chart 7.2 Institutional Responsibilities 1. FPMO  Responsible for the coordination and management of the Project  Directing, coordinating and supervising resettlement implementation and progress  Reviewing monitoring reports  Handling conflicts and issues arising from implementation 2. FPPDC  Appointing a design agency to measure the project area  Organizing the socioeconomic survey  Organizing public participation activities  Organizing and coordinating the preparation of the RAP  Implementing the policies in the RAP 60  Determining the construction schedule of the Project and coordinating the implementation of the RAP  Managing resettlement information  Disbursing funds and supervising the use thereof  Directing, coordinating and supervising resettlement implementation and progress  Implementing internal monitoring, selecting an external monitoring agency and assisting in external monitoring activities  Reviewing monitoring reports  Handling conflicts and issues arising from implementation  Reporting resettlement progress, fund use and implementation quality to the Bank regularly 3. Putian Municipal Ocean & Fishery Bureau  Carrying through the state policies and regulations on land used for project construction  Participating in the review of the land compensation rates of the Project  Going through the land approval formalities 4. Xiuyu District Ocean & Fishery Bureau  Carrying through the state policies and regulations on land used for project construction  Participating in the review of the land compensation rates of the Project  Participating in the socioeconomic survey  Participating in the preparation and review of the RAP  Directing, coordinating and supervising sea area acquisition and resettlement activities of the Project 5. Dongzhuang Town Government  Organizing the socioeconomic survey  Conducting physical registration and fact-finding survey  Organizing public participation activities  Consulting and organizing resettlement programs  Implementing the RAP  Entering into compensation and resettlement agreements with the AHs  Training the staff  Assisting in handling conflicts and issues arising from implementation  Handling and coordinating disputes and appeals of the APs  Giving administrative punishment against illegal acts in resettlement  Reporting resettlement information to the Xiuyu District Ocean & Fishery Bureau 6. External M&E agency  Providing technical advice on resettlement Observing all aspects of resettlement planning and implementation as an independent M&E agency, and submitting external resettlement M&E reports to the Bank 7.3 Institutional Qualifications and Staffing The resettlement agencies of the Project are provided with well-trained staff, with 61 a full-time workforce of 16 and a peak workforce of 36, and a smooth channel of communication has been established. See Table 7-1. Table 7-1 Staffing of Resettlement Agencies of the Project Full-time Peak Resettlement agency Composition workforce workforce FPMO 1 3 Civil servants FPPDC 4 6 Civil servants, technicians Putian Municipal Ocean & Fishery 1 3 Civil servants Bureau Xiuyu District Ocean & Fishery 2 4 Civil servants Bureau Dongzhuang Town Government 3 10 Civil servants Village committees concerned 4 8 Committee members External M&E agency 4 9 Resettlement experts Total 16 36 \ 7.4 Measures to Strengthen Institutional Capacity 1) Before the commencement of resettlement, the resettlement staff of the FPMO has been trained, including the Bank’s operational policy on resettlement, the applicable laws and regulations, and the management of resettlement implementation in order to improve the staff’s professional proficiency and policy application capacity. 2) At the resettlement implementation stage, the FPMO will organize backbone resettlement staff to visit domestic Bank-financed projects, and attend training on resettlement policies and other specialized training. See 3) Table 7-2 for the resettlement training program. 4) Sufficient funds and equipment are available to improve working efficiency. 5) Duties are assigned rationally, and sound reward and punishment measures for the resettlement staff have been established to motivate the staff. 6) A resettlement management information system has been established to realize computer-aided resettlement data management, and information feedback is strengthened to form a smooth information flow. 7) Reporting and internal monitoring are strengthened in order to solve problems timely. 8) Independent M&E will be strengthened, and the external M&E agency will point out existing issues for the competent departments and propose suggested solutions. Table 7-2 Resettlement Training Program Estimated No. Scope of training Trainees Frequency Location cost (0,000 yuan) Resettlement learning tour of Backbone In the 1 domestic Bank-financed resettlement Annually 5 country projects staff 62 Estimated No. Scope of training Trainees Frequency Location cost (0,000 yuan) Backbone Exchange of resettlement In the 2 resettlement Annually 5 experience country staff 63 8 Implementation Plan 8.1 Principles for Progress Coordination between Resettlement and Project Construction According to the implementation schedule of the Project, construction will commence in January 2013 and last 24 months. The resettlement schedule will be linked up with the construction schedule of the Project; the main part of resettlement will begin in the second half of 2012 and end at the end of 2012. The basic principles of scheduling are as follows: 1) Resettlement should be completed at least one month prior to the commencement of construction; 2) Sufficient time must be allowed for resettlement before the commencement of construction. 8.2 Schedule for Key Resettlement Tasks 8.2.1 Principles for Schedule Preparation 1) The Project should be announced 6 months in advance; 2) MBHAB will hold a relocation mobilization meeting that involves the displaced households and the agencies concerned to disclose the compensation and resettlement policies, and the resettlement options; 3) Compensation fees will be settled and paid after contract signing and before land use; 4) The resettlement work should be inspected so as to satisfy the displaced households. 8.2.2 Resettlement Schedule The general resettlement schedule of the Project has been drafted based on the progress of project construction, and resettlement preparation and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 8-1. Table 8-1 Resettlement Schedule of the Project No. Resettlement activity Starting time Ending time 1 RAP preparation stage 2012.4.15 2012.6.30 2 Appointment of the RAP preparation agency 2012.4.15 2012.4.30 3 Socioeconomic survey 2012.5.7 2012.5.15 4 RAP preparation 2012.5.6 2012.6.15 5 Information disclosure and public participation 2012.4.15 2012.7.15 6 Consultation with competent departments and APs 2012.4.15 2012.7.15 7 Disclosure of the RAP on the Bank’s website 2012.6.30 2012.7.15 Disclosure of the draft RAP and the Resettlement 8 2012.6.30 2012.7.15 Information Booklet (RIB) to APs 64 9 Implementation stage 2012.7.15 2013.12.30 10 Detailed measurement survey 2012.7.15 2012.8.30 Execution of resettlement agreements and payment 11 2012.8.30 2012.10.31 of compensation fees 12 Commencement of construction 2013.1.1 2015.12.30 13 Income restoration measures 2012.7.15 2015.12.30 14 Skills training 2012.7.15 2015.12.30 15 M&E 2012.8.1 2015.12.31 16 Baseline survey 2012.8.1 2012.9.1 17 Internal monitoring 2012.8.1 2015.12.31 18 External M&E 2012.8.1 2015.12.31 65 9 Public Participation and Grievance Redress Information disclosure, public participation and grievance redress at all stages of the Project are a prerequisite to realizing the project objectives and ensuring that the APs benefit from the Project. According to the field survey, public participation activities involving agencies concerned and AP representatives have been conducted under the leadership of the PMO and MBHAB at the preparation stage. This chapter will analyze the information disclosure and public participation activities on resettlement only. See Appendix 2 for details. 9.1 Strategy and Methods of Public Participation According to the policies and regulations of the state, Fujian Province and Putian City on resettlement, it is very necessary to conduct public participation at the preparation and implementation stages in order to protect the lawful rights and interests of the APs, reduce grievances and disputes, and realize the resettlement objectives properly by developing sound policies and implementation rules on displacement and resettlement, preparing an effective RAP, and organizing implementation properly. The project management agencies should take appropriate measures and consult with the APs by different means: 1. Direct methods  FGD with APs FGDs are held with representatives of the APs or village officials to discuss key concerns of the APs, collect their opinions, and consulted with local governments about these concerns.  Resettlement consultation meeting Resettlement consultation meetings are organized by the resettlement offices with the APs to notify and discuss resettlement options, and solicit their opinions on improving the RAP. 2. Indirect methods The APs reflect grievances, opinions and suggestions through village committees, and resettlement management and monitoring agencies at different levels, and the resettlement offices feed back and handle such grievances, opinions and suggestions according to established procedures. 9.2 Completed Public Participation and Consultation Activities According to the Bank aide-memoire, it is necessary to prepare an RAP for the project related to the Meizhou Bay Navigation Improvement Project. In March 2012, FPPDC, the design agency, the town government, the village committees concerned and some villager representatives held a FGD on project impacts under the coordination of the PMO, indicating the beginning of project preparation. In April-May 2012, FPPDC, the PMO, the RAP preparation agency, the town government, the village committees concerned and the AHs conducted a socioeconomic survey and a detailed measurement survey. In April-May 2012, FPPDC, the PMO, the RAP 66 preparation agency, the Putian Municipal Ocean & Fishery Bureau, the town government and the AHs held a number of FGDs to discuss preliminary resettlement programs and income restoration measures. In the meantime, MBHAB, the PMO, the Dongzhuang Town Government and the village committees concerned discussed and communicated with the AHs to learn their expected resettlement modes. During July 2-6, 2012, Bank experts, the RAP preparation agency and the PMO have held 3 institutional FGDs with the provincial, municipal and district ocean and fishery departments, the municipal and district human resources and social security bureaus, the project owner, MBHAB, the Yuxiu District Government, the Dongzhuang Town Government and the village committees concerned. See Table 9-1 for the public participation and consultation completed to date. Table 9-1 Public Participation Process of APs Time Location Organizer Participants Topic Output PMO, FPPDC, PMO, Public hearing on / FPPDC town marine government, environment Nov. Dongzhuang village impacts of the 3# 2011 Town Government committees and 4# berths of concerned, the Putou villager reps. Operation Area PMO, FPPDC, design Notification of Conducting FPPDC agency, PMO, project impacts; preparatory town preliminary work Mar. Dongzhuang government, the identification of 2012 Town Government village affected area, committees policy publicity concerned, and mobilization villager reps. FPPDC, FPPDC, PMO, Resettlement Defining the Dongzhuang ocean & RAP preparation socioeconomic socioeconomic Apr. Town fishery agency, town survey, affected impacts and – Government, the department government, area and detailed affected area May village committees village measurement of the Project 2012 concerned, committees and survey locations of APs AHs FPPDC, Putian Determination of Defining the Municipal Ocean & FPPDC, RAP preliminary resettlement Fishery Bureau, preparation compensation and and Apr. FPPDC, Xiuyu District agency, Putian resettlement compensation – ocean & Ocean & Fishery Municipal Ocean policies and policies of the May fishery Bureau, town & Fishery Bureau, programs Project 2012 department government, village town government, preliminarily committees, AHs (many times) locations of APs FPPDC, PMO, Discussion of Supplementary May FPPDC, town government, specific issues in consultation on – Dongzhuang Town Dongzhuang village resettlement specific issues Jun. Government Town committees policies and during RAP 2012 Government concerned, AHs programs finalization 67 Time Location Organizer Participants Topic Output Learning the Preliminary MBHAB, PMO, socioeconomic consultation on May town government, profile and expectations – FPPDC, Locations of APs village preliminary for resettlement Jun. PMO committees expectations for 2012 concerned, AHs resettlement of the APs PMO, Fujian Bank experts; Provincial level 1) Provincial FPMO; provincial FGD on the RAP Interpretation Meeting room of Transport ocean & fishery of the Meizhou of policies on Jul. the Fujian Department department; Bay Navigation sea area use 2, Provincial municipal and Improvement compensation; 2) Issue of 2012 Transport district ocean & Project Department fishery bureaus; fishing licenses MBHAB; FPPDC; Hohai University PMO, Bank experts; Town level FGD on 1) Contracting FPPDC, Dongzhuang the RAP of the of costal tidal Dongzhuang Town Meizhou Bay flats for Town Government; Navigation aquaculture Government FPPDC; MBHAB; Improvement 2) Issue of Jul. Meeting room of certificates of heads of the Project 3, Dongzhuang Town the right to use affected villages; 2012 Government sea areas Hohai University 3) Willingness for training and employment under the Project PMO Bank expert (Yao Municipal level 1) Social Songling); FGD on the RAP security for municipal and of the Meizhou APs; district ocean & Bay Navigation 2) Sea area fishery bureaus; Improvement planning; 3) Approval of municipal and Project the right to use district human sea areas; resources and 4) Definition of social security the scope of Jul. Meeting room of 4, Fengda Hotel in bureaus; Xiuyu compensation; District Port 5) Employment 2012 Putian City Industrial Park; and training town government; 6) Issue of MBHAB; FPPDC; aquaculture Hohai University licenses; 7) Social impacts of navigation improvement and fishing PMO, APs Village-level Disclosure of the village Jul. Dongzhuang resettlement resettlement committees 2012 Town information information to concerned Government disclosure the APs, 68 Time Location Organizer Participants Topic Output including affected area, rates, resettlement modes and appeal channel 9.3 Information Disclosure At the RAP preparation stage, the PMO, FPPDC, the competent department for ocean and fishery, and the design agency disclosed project information and resettlement policies to the APs in different ways, as shown in Table 9-2. Table 9-2 Information Disclosure Plan of the Project Document Mode of disclosure Time Location language Introduction and Municipal radio / TV Feb. 2012 / Chinese announcement of the Project stations, newspaper Resettlement policies Municipal radio / TV stations, government Jul. 2012 / Chinese website Notice on RAP disclosure Local Newspapers Jul. 2012 / RIB Distributed to APs After Bank view / Chinese RAP Government website Sep. 2012 and Chinese / Library after Bank view English 9.4 Public Participation Plan for the Next Stage Different participation and consultation activities will be held at different stages. At the project implementation and resettlement stages, the PMO will also pay attention to public participation and information disclosure, and communicate with the AHs adequately to ensure the successful implementation of the Project. With the progress of project preparation and implementation, the APs should be further consulted in order to handle their issues and requests on resettlement properly and timely so that all issues can be handled before the implementation of the RAP. The resettlement implementing agencies will schedule public participation meetings rationally so that all AHs have an opportunity to be consulted about compensation agreements before they enter into such agreements with the resettlement implementing agencies. The public participation and consultation activities of the next stage include: 1) Release of sea area withdrawal announcement The Yuxiu District Government, the Dongzhuang Town Government and the affected villages will release a sea area withdrawal announcement to identify subjects of compensation. Such announcement will specify the location, boundary, size and proposed use of the sea area to be withdrawn, prohibitions and other matters to be announced. 69 The period of announcement will be 15 days; from the date of publication of the announcement, no entity or individual should rush grow or build sea area attachments within the declared sea area. The Xiuyu District Ocean and Fishery Bureau should determine subjects of compensation and the use of the sea area by them within 10 days of expiry of the announcement, and disclose such information in Dongzhuang Town and the affected villages for 5 days. 2) Go through compensation registration for sea area use; 3) Sign a compensation agreement for sea area use. 4) Discuss compensation for sea area use and its payment schedule; 5) Discuss detailed restoration measures; 6) Issues arising from resettlement implementation; 7) Other concerns of the affected population. The schedule for the next stage of consultation between the resettlement offices and the APs is shown in Table 9-3. According to the working schedule of the resettlement offices, public consultation meetings may be held irregularly in the affected towns and villages, and relevant information will be reflected to the project management agencies in the form of report. The monitoring agencies will not only participate in the consultation activities organized by the resettlement offices, but also consult with the APs about monitoring issues, collect their opinions and suggestions, and provide monitoring information to the competent departments at different levels independently. Table 9-3 Public Participation Plan for the Next Stage Purpose Mode Time Agency Participants Remarks Soliciting opinions Resettlement Village from the APs on Opinions on Discussion offices, Jul. 2012 committees, project impacts project design meeting agencies APs during involved implementation Resettlement Newspaper, Disclosure of offices, Disclosure of the government Jul. 2012 APs the RAP agencies RAP website involved Resettlement RAP Distributed offices, RAP Handbook or Handbook or Jul. 2012 APs to APs agencies RIB RIB involved Announcing the Village amount of sea Resettlement sea area bulletin area acquisition, offices, Ocean acquisition board, Aug. 2012 APs compensation & Fishery announcement village rates and Bureau meeting resettlement options Compensation Village Resettlement Amount of Aug. 2012 APs and bulletin offices, Ocean compensation and 70 Purpose Mode Time Agency Participants Remarks resettlement board, & Fishery mode of payment for sea area village Bureau acquisition, meeting announcement of programs Determination Discussing final Resettlement of income Villager income offices, town restoration meeting restoration Sep. 2012 governments, APs programs and (many programs and village their times) their committees implementation implementation Resettlement offices, town Discussing issues Discussion Issues arising Whole governments, arising from meeting, from project implementation village All APs implementation field survey, implementation process committees, and suggested appeal external M&E solutions agency Resettlement offices, town Collecting Collection of Appeal Whole governments, opinions and suggestions mechanism, implementation village All APs suggestions of the and grievances field survey process committees, APs on the external M&E Project agency 9.5 Appeal Procedure and Handling During preparation and implementation of the RAP, consistent attention will be paid to the participation of the APs and an appeal mechanism will be established. The appeal procedure is as follows: Stage 1: If an AP is dissatisfied with any indirect impact of resettlement or construction, he/she may file an oral or written appeal with the Dongzhuang Town Government. In case of an oral appeal, the town government shall handle such appeal and keep written records. A disposition shall be made within 2 weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with the Putian Municipal Ocean & Fishery Bureau after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file a suit in a civil court in accordance with the Civil Procedure Law of the PRC after receiving such disposition.71 All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from contingency costs. At the whole construction stage, the above procedure will remain effective so that the APs can use it to solve relevant issues. The above appeal channel will be disclosed to the APs via the RIB and mass media. During the implementation of the RAP, the resettlement offices should register and manage appeal and handling information, and submit such information to the FPMO in writing on a monthly basis. The FPMO will inspect the registration of appeal and handling information regularly, and will prepare a registration form for this purpose, the format of which is shown in Table 9-4. Table 9-4 Registration Form of Grievances and Appeals on Resettlement Appellant Time Accepting agency Location Appeal Expected solution Proposed solution Actual handling Appellant Recorder (signature) (signature) Notes: 1. The recorder should record the appeal and request of the appellant factually. 2. The appeal process should not be interfered with or hindered whatsoever. 3. The proposed solution should be notified to the appellant within the specified time. 72 10 Monitoring and Evaluation To ensure the successful implementation of the RAP and resettle the APs properly, periodic M&E on resettlement activities will be conducted in accordance with the Bank’s policy on involuntary resettlement (OP4.12), and the Operational Guide to the Monitoring and Evaluation of Resettlement of World Bank Financed Projects in China. Monitoring is divided into internal monitoring of resettlement agencies and independent external monitoring. 10.1 Internal Monitoring Internal monitoring will be implemented by the FPMO, FPPDC and other departments concerned (e.g., the ocean and fishery bureau) jointly to ensure that resettlement activities are conducted pursuant to the principles and schedule of the RAP. The purpose of internal monitoring is to keep the resettlement agencies functioning properly during implementation. The FPMO and FPPDC will run an internal monitoring mechanism to inspect resettlement activities, establish a basic resettlement database, and use it to prepare the RAP, monitor all AHs, and conduct internal supervision and inspection of the whole process of resettlement preparation and implementation. 10.1.1 Implementation Procedure During implementation, the town governments will collect and record resettlement information from the monitoring samples, and report real-time activity records to the PMO and FPPDC timely to maintain continuous monitoring. The FPMO will inspect implementation regularly. Information forms of specified formats will be prepared in the above monitoring mechanism to realize a continuous mechanism from the town governments to the FPMO. As an integral part of the internal monitoring system, the FPMO and FPPDC will conduct inspection and verification regularly. 10.1.2 Scope of Monitoring 1. Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during implementation; 2. Restoration of the household income of the APs; 3. Restoration and resettlement of vulnerable groups; 4. Payment, use and availability of compensation fees for resettlement; 5. Level of public participation and consultation of the AHs during implementation; 6. Resettlement training and its effectiveness; 7. Resettlement implementing agencies, staff and working efficiency. 10.1.3 Internal Monitoring Reporting FPPDC will submit an internal monitoring report to the Bank semiannually. Such report should indicate the statistics of the past 3 months in tables, and reflect the progress of land acquisition, resettlement and use of compensation fees through comparison. Table 10-1 and 73 ________, ________ Township, ______ District (County) Cut-off date: MM/DD/YY Date of completion: MM/DD/YY Actually Percentage of Item Unit Planned Accumulated completed completion Sea area withdrawn mu Payment of land 0,000 compensation fees yuan Training Person Employment arrangement Person Reported by: ______ Signature (person responsible): ______ Official seal: Table 10-2 Progress of Fund Utilization ________, ________ Township, ______ District (County) Cut-off date: MM/DD/YY Date of completion: MM/DD/YY Required Affected Unit/ Compensation Adjusted Percentage of Description investment entity qty. received (yuan) compensation compensation (yuan) Village 1 Village 2 Collective Displaced household Entity Reported by: ______ Signature (person responsible): ______ Official seal: provide some formats. Table 10-1 Progress Report on Land Acquisition, House Demolition and Resettlement ________, ________ Township, ______ District (County) Cut-off date: MM/DD/YY Date of completion: MM/DD/YY Actually Percentage of Item Unit Planned Accumulated completed completion Sea area withdrawn mu Payment of land 0,000 compensation fees yuan Training Person Employment arrangement Person Reported by: ______ Signature (person responsible): ______ Official seal: Table 10-2 Progress of Fund Utilization ________, ________ Township, ______ District (County) Cut-off date: MM/DD/YY Date of completion: MM/DD/YY Required Affected 5 Unit/ Compensation Adjusted Percentage of Description investment entity qty. received (yuan) compensation compensation (yuan) Village 1 Village 2 5 Fill in labor training, employment, vulnerable group subsidy, etc. in ―Description‖. 74 Collective Displaced household Entity Reported by: ______ Signature (person responsible): ______ Official seal: 10.2 Independent External Monitoring Independent M&E means the regular M&E of resettlement activities by an independent M&E agency. The independent monitoring of the Project will be conducted by an independent agency with relevant experience. Independent monitoring is conducted on all resettlement activities by an agency independent of resettlement implementation with a comprehensive, long-term point of view. The external M&E agency will follow up the resettlement activities to see if the state laws on resettlement, and the Bank’s operational policy on involuntary resettlement (OP4.12) are complied with, and if the production level and living standard of the APs are improved or at least restored to pre-project levels. The external M&E agency will give suggestions to the implementing agencies based on issues found during monitoring so that such issues can be solved timely. 10.2.1 Independent Monitoring Agency As required by the Bank, FPPDC will appoint a qualified, independent agency experienced in Bank-financed projects as the external M&E agency. The external M&E agency will conduct follow-up M&E on resettlement activities regularly, monitor the progress, quality and funding of resettlement, and give opinions. It will also conduct follow-up monitoring on the production level and living standard of the APs, and submit M&E reports to the PMO and the Bank. 10.2.2 Monitoring Procedure and Scope 1. Preparing the Terms of Reference of M&E 2. Developing software for the resettlement M&E information system 3. Preparing a survey outline, a questionnaire and a record card 4. Design of the sampling survey plan 5. Baseline survey A baseline survey required for the independent M&E of the AHs will be conducted to acquire baseline data on the living standard (livelihood, production and income levels) of the monitored displaced AHs. 6. Establishing an M&E information system An M&E information system will be established, where a database will be established for different types of M&E data, in order to provide computer aid for analysis and follow-up monitoring. 7. M&E survey � Capacity evaluation of resettlement implementing agencies: to investigate the working capacity and efficiency of the resettlement implementing agencies � Monitoring of resettlement progress, compensation rates and payment; � Impact analysis of the Project � Follow-up survey and evaluation of the income level of the AHs 75 � Public participation and consultation: to monitor public participation activities during the preparation and implementation of the RAP, and the effectiveness of participation � Appeals: to monitor the registration and disposition of appeals of the APs 8. Compiling monitoring data, and establishing a database 9. Comparative analysis 10. Preparing M&E reports according to the monitoring plan The external M&E agency should prepare the terms of reference, the survey outline and the questionnaire, establish a monitoring system, define tasks and select monitoring sites before the commencement of resettlement. After resettlement implementation, the external M&E agency will monitor the progress, quality and funding of resettlement, and submit to an external M&E report to the Bank semiannually. 10.3 Post-evaluation After project implementation, the resettlement activities will be subject to post-evaluation using the theory and methodology for post-evaluation on the basis of M&E. Successful experience and lessons of sea area acquisition and resettlement will be evaluated to provide experience that can be drawn on for future resettlement. The post-evaluation will be conducted by an independent external M&E agency appointed by FPPDC. The post-evaluation agency will prepare terms of reference for post-evaluation, establish a system of evaluation indicators, conduct socioeconomic analysis and survey, and prepare the Resettlement Post-evaluation Report for submission to the PMO and the Bank. 76 11 Entitlement Matrix Type of Entitled Degree of impact Compensation and resettlement policy Remarks impact persons Withdrawing a total 1,631 1) Cash compensation: The compensation rates for aquaculture products Cash compensation is one-time sea area of households with are shown in Table 4-1: 5,000 yuan/mu for sea clam seedlings and and equal to the lost 7,774.39 mu, 8,725 persons aquaculture facilities, 5,000 yuan/mu for hard clam seedlings and aquaculture income for one including 6,825.91 in Shiqian, aquaculture facilities, 5,625 yuan/mu for oyster and kelp seedlings, and year of each AH; those subject Sea area mu of aquaculture Daxiang, Shitou aquaculture facilities, 6,250 yuan/mu for shrimps, and 3,000 yuan/mu for to job placement and skills withdrawal water surface and a and Shiwei shrimp ponds; 2) Social security: According to the Interim Regulations of training will be employed and state-owned sea villages Putian City on the Employment Training and Social Security of trained based on adequate area of 948.48 mu Land-expropriated Farmers, eligible AHs will get insured voluntarily; 3) Job consultation. placement: public welfare and Project jobs; 4) Training: a wide range of training courses, for those aged 16-35 years mainly 4,188 women 1) 30% of unskilled jobs and all office jobs in the Project will be first made The women’s federation will available to affected women; 2) Affected women will receive relevant provide acceptable education to information during resettlement, and may participate in public consultation women. Women / and resettlement; 3) Women may apply for small-grant loans; 4) During resettlement, a FGD of women was held to introduce resettlement policies and improve women’s awareness; 5) The compensation agreement must be signed by the couple. Low-income 45 households 1) Laborers in vulnerable households will have priority in obtaining unskilled Vulnerable households will be people, with 100 job opportunities, and provided employment information and guidance to re-verified after the detailed Vulnerable five-guarantee persons increase their job opportunities; 2) Unskilled jobs will be first made available design, and monitored closely groups households to laborers in vulnerable households during project construction. until the assistance measures have been completed. Grievances All APs Free, all reasonable costs so incurred will be disbursed from contingencies / & appeals 77 Appendixes Appendix 1 Fieldwork Methods of the RAP Preparation Team Method Time Location Size Participants Remarks 1. Literature RAP preparation Refer to the project proposal review team of Hohai and the aide-memoire of the University Bank Identification Mission to learn project information. Learn the socioeconomic Apr. – profile of the province, cities, Jun. / / counties and towns affected 2012 by the Project, and refer to the sea area acquisition policies of Fujian Province. Develop the survey plan and design the questionnaire on this basis. 2. Sampling Shiqian, Town government, Investigate the AHs’ attitude survey Daxiang, affected village to the Project, and living and Shiwei and committees, economic conditions in May Shitou aquaculture/fishing depth. 120 7-12, Villages, households in AHs 2012 Dongzhuang affected villages, Town, Xiuyu RAP preparation Distr ict team of Hohai University 3. FGD MBHAB, town AP Learn project preparation, government, representatives, the preparation of the committees of RAP preparation pre-FSR, specific project May affected team of Hohai information and its affected 9-11, villages, AP 2 times University area, and the socioeconomic 2012 representatives profile of the affected towns and villages, and consult and discuss resettlement and compensation programs. 4. Key Resettlement Putian Municipal Learn the socioeconomic informant offices, village Ocean & Fishery profile of Xiuyu District and interview committees Bureau, Xiuyu Dongzhuang Town, and the District Ocean & Project’s socioeconomic May Fishery Bureau, benefits for and impacts on 6 10-11, labor and social the sub-district, future persons 2012 security development plans of the departments, town and affected villages, village CPC and the compensation and branch secretaries resettlement policies of the Project. 5. In-depth Affected village AP Discuss the compensation interview May committees representatives, and resettlement measures 8 7-11, RAP preparation of the Project in depth. persons 2012 team of Hohai University 6. Field May Project site MBHAB, RAP Investigate the Project’s / investigation 12, preparation team impacts on site. 78 2012 of Hohai University Appendix 2 Public Participation Activities at the Preparation Stage Public participation is an important means of protecting the lawful rights and interests of the APs, reducing grievances and disputes, and further improving the project design. In addition, a good public participation strategy and participation activities can solicit public opinions extensively and reduce the Project’s social risks. The management agencies of the Project attached great importance to public participation at the preparation stage, and held FGDs with town and village officials, and some villagers in the project area in different ways to solicit public opinions extensively, and provide firsthand information for the development of the project design and the resettlement programs. In April 2012, under the leadership of MBHAB, FPTD, Fujian Port & Waterway Investigation & Design Institute (FPWIDI), the Putian Municipal Ocean & Fishery Bureau, the project owner, and villager representatives discussed layout plans and spoil backfilling schemes many times in the form of FGD. Through repeated discussions and comparisons, layout plans and spoil backfilling schemes for several key channels in the Project were determined, and the FSR of the Project was completed by the design agency. In May 2012, under the leadership of MBHAB, the RAP preparation team conducted FGDs with village officials and villager representatives to learn the Project’s direct and indirect economic, social, productive and living impacts. In addition, the survey team also interviewed key informants in depth to learn nearby residents’ needs for the Project. It was found that most town and village officials, and villagers supported the Project, and they thought that the Project would not affect their production and livelihoods itself, but its construction should not damage the local marine environment and landscape. Some villagers said that if resettlement was caused inevitably by the Project or their productive resources were damaged during project construction, the management agency should compensate them reasonably. See Attached Table 3-1. Attached Table 3-1 Summary of Public Participation Activities at the Preparation Stage Time Organizer Location Participants Method Topic Consultation outputs MBHAB, Fujian 1. The project owner Meizhou Bay proposed to use dredged MBHAB, Fujian Meizhou Bay Port Dongzhuang Town Government Port spoil from the Meizhou Bay Development Navigation Improvement Development Co., Ltd. Co., Ltd., Project (Phase 3) for FPWIDI, backfilling to berths in the Apr. Dongzhuang The Putou Operation Zone; 2. FGD 2012 Town Project The Dongzhuang Town Government, Government approved of Shitou and using dredged spoil for berth Daxiang construction in the Putou Village Operation Zone; 3. The Committees, Shitou and Daxiang Village some villagers Committees approved of 79 Time Organizer Location Participants Method Topic Consultation outputs (9) using dredged spoil for berth construction in the Putou Operation Zone; 4. Most of villagers approved of this scheme, but required that sea area withdrawal should begin after the current aquaculture period. 1. Most of villagers understood the significance of the Project, and thought that the Project was favorable as long as it did not damage the local marine environment and landscape, and the Project would not cause productive or living inconvenience to them itself; MBHAB, Hohai 2. Most of villagers thought Attitude University, that higher compensation Shitou Village Key of Shitou Village should be paid for sea area MBHAB May informant nearby Committee, acquisition arising from the 2012 interview, residents representatives Project, and be accompanied FGD to the (5) of Shitou by endowment insurance; 3. Project Village Some fishing households thought that the Project should not affect their fishing operations; 4. Most villagers thought that there should be more similar project consultations, and the project management agencies should disclose the project design on newspapers and TV timely. 80 Appendix 3 Village-level publicity 81 82 83 84 85 Appendix 4 The list of participants 86 87 88 89 90 91 92 Appendix 5 Resettlement discussions and interviews 93 94 95 96 97 98 99