E4682 V5 CHINA: Huainan Coal Mining Subsidence Area Rehabilitation Project Social Assessment Report Summary Project Management Office of Huainan Municipality October, 2014 1 Brief Project Description 1. In order to control and rehabilitate the area with ground subsidence and environmental degradation caused by long-term coal mining, and to promote sustainable development, Huai’nan municipal government proposed the “World Bank (WB) Financed Huainan Mining Area Rehabilitation Project (hereinafter referred to as Huai’nan WB Project).” 2. The Huai’nan WB Project is located in the Jiulonggang-Datong (or JiuDa) coal mining subsidence area of Datong District, Huai’nan City, Anhui Province, covering the area of 9.3 km2, and comprising 3 subprojects, respectively: (1) Environmental remediation and water system treatment; (2) infrastructure improvement and development and utilization of the project area; (3) project management and technical assistance. Please refer to Table 1 for content introductions in detail. Table 1. Project Profiles Subproject Construction Content Objective Name 1) Halt the further deterioration of ecological environment, make every effort to restore the complete plant community 1) Environmental remediation: system, biologic chain system and the local nature environmental remediation of ecosystem within the region; 2) Create the landscape the mining wasteland and elements such as nursery and forest into an integrated green re-vegetation of the project space of leisure, recreation, fitness and science area demonstration through integration and improvement of the greenway to promote the blending development of the old 1. and now urban areas. Environmental 2) Water system treatment: Remediation repair the water system in the Reaching the 30-year return anti-external flash flood and and Water project area and meet the 30-year return drainage requirements though the water System 30-year return anti-external system treatment of the subsidence area, control the water Treatment flash flood and 30-year return quality to reach Class V Standards. drainage requirements 3) Closure of old garbage Thoroughly solve the problem of environmental pollution dump in Datong: close Datong in the surrounding area of the old garbage dump to reduce Garbage Dump to prevent the impact on the surrounding environment exerted by the water, soil and air pollution of leachate and the landfill gas from the old garbage dump. this region 1) Improve and build the The infrastructure is mainly based on the construction of 2. necessary road and the related the 4 road and the pipeline project under the road in the Infrastructure water supply and drainage project area, setting a zoned separation sewage system of Improvement infrastructure in the project rain water and sewage in order to accelerate the formation and Project area, restore the original of the arterial road network and to improve the traffic Area functions and connect them to conditions, water supply and drainage conditions and the Exploitation the other part of the city. investment environment. 2) Project area exploitation: support the facilities construction and activities in Construction of redevelopment project: bonsai garden, the project area after nursery, flower trading market to make it a financial rehabilitation, integrate sustainable project. resources for local development services 1) Technical research In the process of establishing executing body, developing 3. Project 2) Project technology quality management system of the project, the experts of Management management the World Bank project can provide constructive and Technical 3) Personnel technical training suggestions and personnel training. Amplify the leverage Asistance 4) Guidance and counseling effect of the World Bank loan and Government financial service fund. 2 Methods of Social Assessment 3. Social assessment was carried out through desk review and field visits including consultation with various stakeholders. The consultation was carried out through focused group discussions and individual interviews. Focused group discussions (FGDs) were organized in all 7 communities and three villages within project and surrounding areas. More than 100 people participated in the consultation sessions and more than 60 % of them are women. The social consultant individually interviewed about 40 persons randomly selected, including the persons who were affected by land acquisition of the mining development activities. The time, location and consultation methods are shown in Table below. Time Location Consultation methods April 27, 2013 Xinjian community Individual interview and FGDs April 28, 2013 Hongqi community April 28, 2013 Jiulonggang village June 22, 2013 Zhonghua community June 23, 2013 Zhanhou community Individual interview and FDGs June 23, 2013 Kuangnan community Individual interview and FGDs June 24, 2013 Chengang village October 13, 2013 Longhu park Individual interview and FDGs October 14, 2013 Haotai hotel October 15, 2013 Other project area November 7, 2013 Renmin village November 8, 2013 Taoyuan community FGDs 4. A questionnaire survey was also carried out. 180 questionnaires were distributed in the communities and villages within and surrounding the project areas. 155 valid questionnaires were received. 5. At the same time the social consultant also carried out consultation with local government officials from relevant agencies including Huai’nan Education Bureau, Human Resources and Social Security Bureau, Statistics Bureau, Finance Bureau, Ethic and Religious Committee, Women’s Federation, Datong District Government, Jiulonggang Town of Datong District, and Datong sub-district office 3. Socioeconomic Baseline Information in the Project Area 6. The project is located in Datong District of Huainan City in Anhui Province. The total project area is about 9.3 km2 (13950 mu) consisting of 11182 mu (15 mu = 1 ha) of state-owned land and 2768 mu of collectively owned land. 7. A significant area subsided due to coal mining in the past. Most people in the project area have been relocated by local government and the Mining Group. However, there are still some individual who rented the state-owned land in the project area to operate some small scale enterprises. 8. The users of the state-owned land are complicated, involving both Huai’nan Mining Group Company and municipal government of Huai’nan City and government of Datong District. The main coal mining closed completely in 1982. However, some small scales of enterprises, which were developed in the past associated with the operation coal mine operation, are still operating. 9. The collectively owned land in the project area mainly belongs to two administrative villages: Chenxiang Village and Jiulonggang Village in Jiulonggang Town. All the rural residents in these two villages have been relocated in the past, but some part of their farmland is still in the project area. 10. All people live in the project area are urban residents in the four communities, including i) Chonghua; ii) Hongqi; iii) Zhanhou, and iv) Kuangnan. There are 1928 people in total in these four communities. Most of the residents in these four communities are employees in the small enterprises and public units which are still operating. The distribution of the population in the four communities is shown in see Table 2. Table 2: Population living in the project area No. Resident site Community Town or Subdistrict Households Population 1 Chongwen Hongqi Jiulonggang Town 22 60 Communiy 2 Kuangbei Chonghua Jiulonggang Town 60 212 Community 3 East side of Kuangnan Datong Street 368 1500 Cement Plant Community Road 4 Kuangnan Kuangnan Datong Street 38 130 Community 5 Zhanqian Zhanqian Datong Street 6 26 Community Total 494 1928 11. There are six communities and three villages in surrounding area adjacent to the project area, including i) Hongqi community; ii) Huaishun Community; iii) Chonghua community; iv) Xinjian Community; v) Zhanhou community; vi) Kuangnan community; vii) Jiulonggang village; viii) Qingfeng villange, and ix) Lvying village. The total population is 26312 in these surrounding communities and villages, including local residents, employees in enterprises and public units, and students. The distribution of population is shown in Table 3. Table 3: Residents living in the surrounding area No. Name of the Name of the Number of Number Remarks village or township or households of community Street Office people 1 Hongqi Jiulonggang 250 4850 community town 2 Huaishun Jiulonggang 3400 Including 2200 students of community town technical school 3 Chonghua Jiulonggang 2407 Including students in one school community town and employees in one hospital. 4 Xinjian Jiulonggang 7858 community town 5 Jiulonggang Jiulonggang 2737 villiage town 6 Qingfeng Jiulonggang 338 village town 7 Zhanhou Datong street 10 40 community 8 Kuangnan Datong street 3932 community 9 Lvying Village Datong tree farm 150 750 North of tree farm road 12. There are seven small enterprises which are still in operation in the project area. These enterprises have 494 employees1 in total. The details of these seven enterprises are shown in Table 4. Table 4: Information on enterprises located in the project area Location of the Number of No. Name of the enterprises Remarks enterprises people Huai’nan Industrial Boiler Chenxian village of This enterprise will be affected by 1 27 Accessories Factory Jiulonggang town land acquisition and will need to be 1 All of them are already included in the total population in Table 2. relocated. Chenxian village of 2 Garbage Dump 7 Jiulonggang town Huai’nan City Manhan Kuangnan community 3 Construction Material Co., 75 of Datong street Ltd. Huai’nan City Zongjian 4 New Construction Material 85 Co., Ltd. Huai’nan City Tianjie Hongqi community of 5 Commercial Concrete Co., 135 Jiulonggang town Ltd. Huai’nan Branch of Beijing Zhongdian Environmental Hongqi community of 6 35 Engineering Material Co., Jiulonggang town Ltd. Huai’nan Qiancheng New Kuangnan community 7 Construction Material Co., 130 of Datong street Ltd. 13. There are 6 service units, including schools and hospitals in the project area. There are 2771 people in these public units including 1556 students. The details are shown in Table 5. Table 5: Public units located in the project area No. Name of the public Location Number of Remarks units people 1 Fourteenth Middle Hongqi Community of 1305 There are 105 teachers and 1200 students School Jiulonggang town in the school 2 Jiuyi Primary School Hongqi Community of 384 There are 28 teachers and 356 students. Jiulonggang town 3 Wanrenkeng Education Kuangnan community 5 Center of Datong street 4 Anhui Province Kuangnan community 620 Including 500 drug personnel and 120 Huai’nan City of Datong street workers and 30 personnel in duty every Qishanji Garden Spot day. 5 Huaian City Datong Kuangnan community 57 Funeral House of Datong street 6 Kuangnan community 400 400 people are engaged in religious Christian Church of Datong street activists, they only come when religious rites are performed. 14. There are two enterprises which are in operation in the surrounding area. There are 155 employees in these two enterprises. Please see the details in Table 6. Table 6: Enterprises located in the surrounding area Location of the Number of No. Name of the enterprises Remarks enterprises people Dongfang Construction Equipment Rental Co., Zhanhou community of 1 30 Ltd. (south of Fifteenth Datong street Middle School) Shenghe Machinery Zhanhou community of 2 Branch Datong street 125 15. There are seven public units in the surrounding area. There are 460 employees in total in these units. Please see the details in Table 7. Table 7: Public units located in the surrounding communities No. Name of the public units Location Number of people Remarks 1 Imperial Bank of China Huaishun community 20 Mental Hospital 2 Chonghua community 60 Kuangdong Group 3 Jiuer Primary School Xinjian community 4 Shengang Primary School Jiulonggang village 96 Huai’nan City Datong 5 Kuangnan community 57 District Funeral House Social Welfare Institute in Kuangnan community of Including 300 adopted children 6 410 Datong District Datongstreet and 110 workers 7 Qishanji Culture Cemetery Kuangnan community 18 4. Social Impacts and Risks 16. Overall the project will have significant positive impacts on local people in the project area and the communities in the surrounding areas through environmental improvement, improved road conditions, water supply and sanitation systems and networks, and generation of employment opportunities. The main negative social impacts are associated with the land acquisition. The consultations with the people affected by land acquisition associated with the mining development activities in the past do not reveal any legacy issues. 4.1 Positive social impacts 17. Potential positive impacts on local economic development. This project will bring innovation to the comprehensive environmental treatment in coal mining subsidence area in Huai’nan City. After the completion of the project, it will create a good investment environment and promote the development of real estate and tourism: this project will make surrounding areas of real estate increase in value by 15%-30% and promote the development of real estate and tourism. 18. Creation of employment opportunities. The developed and utilized items of this project include floral trade market, garden displaying potted landscape and nursery garden, which can provide a large quantity of jobs besides its considerable economic benefits. The flower market can provide 37 managerial positions, the Bonzai garden can provide 27 positions and tree nursery can provide 54, the flower market can also provide more than 4,000 booths, which can serve as a good platform for the local households who are willing to set up the their own businesses. The skill training plan of the project will effectively help the affected residents, especially to realize the reemployment goal of women: based on sufficient market research, the project office has set up a practical five-year employment training plan for the staff who need to be trained of the project and surrounding areas. All the training occupations are carefully selected through the market research, among which the garment making is specially designed for women who are willing to accept the training, and flora selling in the flora trade market is very suitable for women to run. 19. Reduction of deceases born from the pollutant emissions from the closed dump site. The closure treatment of the old waste yard can solve the pollution problem rising from exposed garbage and effectively control the influence of garbage on the surrounding environment, which will directly improve the quality of life and living environment of the surrounding residents. It will also effectively control the pollution on underground water, clear environment that breeds flies and mosquitoes and reduce morbidity, which can directly reduce the residents’ medical expenses. 20. Improved access to various service facilities and water supply. After the completion of the project, it will enhance the road network and other infrastructures within the project area. This will contribute to saving of travel time and to improve the quality of life of residents. The infrastructures are mainly improved through construction of the four roads within the area and the water supply pipeline engineering under the road, which makes diversion of rain and sewage and speeds up the formation of main street network, so as to improve the transportation, water supply and drainage conditions and investment environment in the area. The economic benefits generated by road construction include to save vehicle operating cost, travel time, and cut traffic and accident loss. 4.2 Negative Social Impacts 21. Land acquisition. Project implementation will involve some permanent land expropriation and house demolition and relocation. The construction of the project will inevitably require permanently expropriating or temporarily occupying some land. In terms of the present design result, although each subproject has been optimized and modified in order to reduce land expropriation and demolition, some of the subprojects will still occupy some state-owned land and land owned by some villagers.  Relocation of six households. Six households in Zhanhou community will need to be relocated.  Acquisition of collectively owned land. The project needs to expropriate 177.7 Mu collective lands in Jiulonggang town of Datong District. Affected farmers have 33 households with 122 people. All expropriated lands are cultivated lands, which are used as flower market.  Long term land leasing. The project needs to rent and transfer use rights of 1533 mu of collectively owned land of Chenxiang Village, which would be used as tree nursery development and environmental remediation under the project. This involves 1,042 people from 306 households.  Relocation of one enterprise which is still in operation. Tianhe Boiler Accessories Factory, which has 27 employees, will need to be relocated.  Acquisition of state owned land. The project will need to acquire 1056 mu of state owned land. The land using right currently belong to four small enterprises. These four enterprises were closed long time ago and no people will be affected by this land acquisition, but they will need to be compensated. These four enterprises are listed in Table 8. Table 8. Closed enterprises to be affected by the project Name Current state Datong Third Coal Mining Co., Ltd Shut down Datong First Coal Mining Co., Ltd Shut down Huangjian Coating Factory Shut down Huainan Oil Mixture Factory Shut down 23. Impacts on people’s normal life during construction. During the construction period the project will disturb the normal life of the residents. The construction of the project will inevitably have noise, dusts, potential hazard of traffic safety, etc. All these may negatively affect normal life of local people. 4.3 Potential social risks 24. The main social risks are related to land acquisition and long terms land leasing:  With regards to land acquisition, there is a potential risk that affected residential households and enterprises cannot reach agreement on the compensation package, as a result the project implementation could be delayed.  With regard to the land leasing for the tree nursery development and operation. There are two potential risks: First, the process of negotiating and signing the lease agreement may take longer time than expected, which will delay the project implementation. Second, farmers may not receive sufficient rent or cannot receive rent on time if the project entity is not managed properly. 4.4 Key Findings of Social Consultation 25. Consultations were carried out with various stakeholders as part of the social assessment. The key findings of the consultation are the following:  Local residents are very supportive to the project. Residents in project area and the surrounding area adjacent to the project site are very supportive of the project. The SA reveals that the local residents have been suffered from air pollution, water pollution, rubbish and solid waste impacts. All local resident consulted with are eager to have the project to help with reduction of environmental pollution and damages as mentioned above, to improve quality of life, and to have a healthy and safe living environment through the environmental governance project.  Enterprises affected require reasonable compensation. All the enterprises require reasonable compensation for the land and plant no matter they have been shut down or are still operating, and the workers in enterprises which are still operating need to be properly resettled.  People affected by land acquisition welcome the project but require transparent resettlement policies. The project will inevitably expropriate some land and demolish some houses. The affected persons are very much in favor of this environment improvement project, while they also hope that: a) The standard and policy of compensation for land expropriation and demolition shall be notified as soon as possible, and shall be in an open, fair and transparent way; b) The resettlement plan of land compensation shall be reasonable; c) Compensation fees shall be released in full and on time.  Women will equally benefit from the project as men. The social assessment was carried out in a gender sensitive approach and a detailed gender analysis was carried out as part of the social assessment. The 155 questionnaires are involving 506 population, among which 259 are male who account for 51.19% and 247 are female who account for 48.81%. More than 100 people participated in the consultation sessions and more than 60 % of them are women. The results of the analysis indicated that the average education level of women is lower than men. For instance, 47% men received middle school education but on only 33% for women. Although women undertake almost all family chaos but most families rely on men for family cash income. Men earn over 75% of total family cash income for over 90% of families in the project area. However, women will have equal opportunity to benefit from the project in terms of improved environment and access to job opportunities. However, the land acquisition may result in reduction of income generated by women who mainly rely on land for income generation activities. 5. Mitigation Measures 26. In order to mitigate the negative social impacts associated with land acquisition and manage the potential social risks, a resettlement action plan (RAP) and environmental management plan (covering social part) have been prepared and disclosed. More specifically, the following measures are included in these plans.  To mitigate the negative social impacts associated with land acquisition and resettlement, the following measures have been taken in the process of the resettlement planning: a) Participation of and consultation with affected people. Conduct sufficient participation and consultancy of the public to allow the public to join in project design and to ensure the embodiment of their benefit demand; b) Compensate the affected assets at full replacement cost and provide support to livelihood rehabilitations. Compensation will be paid to the affected people for their land and houses at full replacement cost. Additional allowance will be provided to vulnerable groups such as female household and the disabled in the process of house reconstruction; c) Provide skill training and job opportunities to affected persons; d) A grievance redress mechanism has been established and included in the resettlement action plan.  To manage the potential risks associated with long term land lease, detailed land transfer processes and procedures and the legitimate rights of both parties are included in the RAP.  To minimize the impacts on the local communities during construction, measures have been included in the ESMP, which mainly include but not limited to the following: a) The road and water supply pipeline with be constructed section my section to reduce influence on the travelling of residents; b) To provide additional road signs to limit vehicle speed and carry out traffic safety propaganda; c) The contractor will follow noise control standard strictly, and to take actions to reduce noise pollution as much as possible; d) Forbid high-noise construction at night and avoid night work if possible; e) Regularly water the entrance road and makeshift road for construction to prevent dust pollution; f) Remove the construction refuse and major pollution source from the construction camp in time and sanitize the construction camp, and regulate behaviors of the construction workers. 6. The Arrangements for Local People to Benefit from Land Value Increase 6.1 The Area with potential of land value increase The area with potential land value increase is the belt between Dongshan East Road and Linchang Road and Jiuda Road adjacent to the north side of the project area, which includes 10 land plots according to the two development plans (see the map below). The belt is divided into two parts by the Zhongxing Road under planning, which belong to two different regions in terms of planning. The first part to the west of Zhongxing Road with an area of 91.84 hectares belongs to the Regulatory Detailed Planning on Quanda Resources Exhausted Area of Huai’nan City, while the second part to the east of Zhongxing Road with an area of 103.37 hectare belongs to Regulatory Detailed Planning on Jiulonggang Region of Huai’nan City. Based on the documents of land ownership and the two development plans, of 195.21 hectares of the total land area of the belt, there are 49.36 hectares of collective land distributed in Chengxiang village, Xiacai village, Qingfeng community and Datong Street and 145.85 hectares of state-owned land .The size and ownership structure of each plot are shown in Table 1. Table 1. Land ownership and size of each plot in the belt Collective unit and Area of Area User and population Actual population Plots Collecti State-own area Populati ve land Unit ed land User Population on Chenxiang 25 Datong Forest 400 C01 14.05 2．83 11．22 Village Farm Chenxiang 75 Shunfa Hengye 3,000 C02 45.45 18.73 26.72 village Co., Ltd. Xiacai 700 300 E01 19.69 6.75 12.94 Jiu-yi Company Village E02 24.18 - 24．18 Mining Group 4,048 Qingfeng 339 Datong Forest 750 K01 24.24 12.45 11.79 Community Farm Datong 843 Datong Forest 589 K02 14.50 8.60 5.90 Street Farm K03 8.52 0.00 —— 8.52 Mining Group 2,500 L01 11.06 0.00 —— 11.06 Mining Group Huai’nan 18．08 L02 18.08 - Municipal Government 230 Huai’nan 147 Datong L03 15.44 - 15．44 Municipal Street Government Total 195.21 49.36 2212 145.85 11,734 The development status of the state-owned land is the following:  59.42 hectares of land plot of C02, E02 and K03 have been developed into residential areas;  the using right of 33.52 hectares of land plot of L02 and L03 has been transferred to the Huainan Municipal Urban Investment and Construction Company and is ready for development;  no clear development schedule for the remaining 52.91 hectares of land of other plots. 6.2 Population Profile The field survey shows that there is a population of 13946 in the belt (see Table 1 ), including 2212 of rural population (Chenxiang village, Xiacai Village, Qingfeng community and Datong Street) and 11734 of urban population, of which 9548 people live in the newly developed residential area of plots C02, E02 and K03. 6.3 Mechanism for Local People to Benefit from Land Appreciation Urban residents: Among 11,734 of urban residents, 9,548 people have properties within the belt and their properties will be appreciated along with land appreciation, so they will gain benefit from land value increase as a result of the project implementation. The remaining 2,186 persons to be affected by land development in the future will be compensated by replaced housing area with floor area of 1.2 times of the original living area. The resettlement site will be within the belt. Therefore they will be able to benefit from the land value increase. If these people are relocated outside of the belt, the land value and its appreciation of the resettlement site will not be lower than that of the land within the belt. Rural residents: As indicated in table 1, there are 2, 212 rural residents within the belt. These people own 49.36 hectares of collective land, of which there are 26.2 hectares of cultivation land and 23.16 hectares of land for housing construction. The collective land is distributed in two villages including Chenxiang village and Xiacai village and remaining land is distributed in four collective entities including Chenxiang Village, Xiacai Village, Qingfeng Community and Datong Street. In order to make the rural residents benefit from land value increase through land development in the future, the government will take the following measures: a) To update the Regional Comprehensive Land Price at least once every two years in order to guarantee that the land appreciation can be reflected in new land compensation standard. It was agreed that Land Compensation Standard will be updated for three times during project implementation respectively in 2015, 2017 and 2019. b) Land area expropriated each year shall not exceed 20% of the total collective land area within the belt. It means that collective land expropriated in the area shall not be more than 10 hectares each year during project implementation. Thus there will have land to be expropriated over the next few years after land appreciation. Therefore rural residents will be able to benefit from land appreciation. c) To allocate 5-10% of expropriated land to village collective for economic development as per relevant policies. Specific measures and procedures are the following: 1) government pay compensation to affected people at the Regional Comprehensive Land Price; 2) convert the collective land into state owned land when full compensation is paid; 3) government transfers a piece state-owned construction land, which equal to 5-10% of actual size of expropriated collective land, to village collective for economic development; 4) local people will decide how to use the land for development and the benefit distribution appreciation among rural residents. d) For those rural residents to be relocated will be resettled within the belt in principle. In case some residents want to move outside of the belt, the land value of the resettlement site should not be lower than the land value within the belt. 6.4 Monitoring mechanism Currently, the municipal government of Huainan City has a well-established monitoring mechanisms and auditing procedures with regard to the land acquisition, demolition and resettlement. To monitor the implementation of the mechanisms design for local people to benefit from land appreciation, a specific monitoring arrangement will be established as part of Environmental and Social Management Plan. The monitoring arrangements and indicators are the following: a) The external resettlement monitoring unit will monitor the implementation of the mechanism to benefit local people from land value increase and include the findings as a part of the biannual resettlement monitoring report. b) The area to be monitored will include all land plots within the belt which have the potential of land appreciation as a result of the project implementation. c) The monitoring indicators and contents:  Amount of state-owned lands purchased and stored and collective lands expropriated each year during the construction period of the project  Population affected by state land purchase and collective land acquisition  Resettlement sites of affected people  Market price of resettlement houses within and outside of the belt  Status of Regional Comprehensive Land Price updating  Amount and location of state construction land allocated to the village affected by land acquisition and the status of its development and utilization  Distribution of benefits generated from the land allocated to the village among local people within the village