Resettlement Policy Framework For Environment Revolving Fund of China Liao River Basin Project RP64 Volume 6 China Liao River Basin Project Resettlement Policy Framework For Environmental Revolving Fund (DRAFT) FILE COPY I Policyframe Resettlement Policy Framework For Environment Revolving Fund of China Liao River Basin Project March 2001 2 Policyframe Resettlement Policy Framework For Environment Revolving Fund of China Liao River Basin Project Introduction Liao River Basin Pollution Control Project includes mainly Wastewater Management subprojects in Shenyang, Jinzhou, Yingkou and Panjin as well as Paper Mill's industrial wastewater management in Yingkou and Jincheng. An environment revolving fund will be set up under the project to encourage industry process modification to meet environmental standards. The revolving fund will finance investment schemes to be identified during the course of project implementation. At the time of project preparation and appraisal, no land acquisition or other resettlement-related impacts could be identified. This policy framework has been prepared for the purpose of establishing planning principles and procedures to be applied in the event that involuntary loss of land or other fixed assets would arise as a result of implementation of any proposed schemes under the environmental revolving fund. The policy framework has been developed based on relevant Chinese laws and regulations as well as World Bank Operational Directive 4.30 on involuntary resettlement. Legal Framework And Principles The legal framework for resettlement planning consists of Chinese laws, regulations and World Bank policies. They are as follows; Land Administration Law of China Liaoning Provincial Regulation of Implementing the Land Administration Law Urban and Rural House Demolition Administration Regulation of China World Bank Operative Directory 4.30 on Involuntary Resettlement General principles of resettlement and rehabilitation X Optimizing the project design to reduce the scope affected by land requisition and house demolition of the project as possible and to minimize the involuntary displacement. All involuntary displacement and resettlement will be implemented as an integral part of the project. Person or entities affected by the project should be given sufficient compensation and should be provided the opportunities to benefit from the project. * Entities affected by the project should be given the compensation for production and business interruption, house and ground attachments demolition. And employees should be resettled appropriately to make them recover their production and business as soon as possible. Lack of legal title to, or formal ownership of, affected assets is not a barrier to compensation or other forms of assistance; * Participation of PAPs will be encouraged during the preparation of the resettlement action plan and their comments and suggestions on relocation and resettlement issues will be fully respected and considered. 3 Policyframe Resettlement Policy Framework For Environment Revolving Fund of China Liao River Basin Project * Efforts should be taken to improve PAPs' livelihoods and living standards, or at least to restore them, in real terms, to pre-displacement levels. * Adequate supervision and monitoring should be in place to identify any issues associated with involuntary losses in a timely manner. * Institutional responsibilities to implement the rehabilitation measures need to be clearly delineated. For the purposes of this framework, "affected persons" are defined as persons who, as a result of works carried out or to be carried out under the Project, would incur involuntary loss, temporarily or permanently, of land, shelter, productive assets or access to productive assets, or of income or means of livelihood and, as a consequence, have their living standards or production levels adversely affected. Resettlement Planning Requirement And Procedures In the case of land or asset loss, a resettlement action plan (RAP) should be prepared as part of the scheme proposal. The RAP should be prepared through the following steps: Socio-economic survey. A socioeconomic survey must be conducted as part of the scheme proposal, with the aim of understanding the socioeconomic environment of the scheme, identifying and assessing the adverse impacts under the scheme, preparing the resettlement and relocation plan, estimating resettlement cost, managing the resettlement implementation, monitoring and evaluating. Inventory and census. To determine the adverse impacts under each scheme, an inventory should be conducted to identify and record all the physical losses. The census will be carried out to record the number of affected population under the scheme. Compensation and budget. A compensation policy should be developed on the basis of the inventory and in line with the principles as set forth above. Compensation rates and resettlement budget should be developed. RAP development. On the basis of the above, a RAP should be prepared. The RAP should contain the following, (i) description of the project activity necessitating land acquisition; (ii) basic legal or regulatory provisions regarding land acquisition and compensation; (iii) basic data enumerating and identifying impacts and the persons to be affected by them; (iv) compensation rates and resettlement budget; (v) timetable; (vi) organizational and financial arrangements; and (vii) consultative arrangements (including grievance procedures). Review procedure. The RAP should be reviewed as part of the scheme proposal. Management Organizations and Responsibilities Organizations 4 Policyframe Resettlement Policy Framework For Environment Revolving Fund of China Liao River Basin Project Relevant organizations responsible for planning, management, implementation and monitoring of the resettlement action include: Liaoning Provincial Environment Protection Bureau Municipal Environment Protection Bureau of project cities Liaoning Urban Construction and Renewal Project Office(LUCRPO) Municipal Land Administration Bureau of all project cities Municipal Urban Planning Bureau of all project cities Urban and Rural House Demolition Administration Office of all project cities Implementing unit of each projects Design institute of each project Person or entities affected by projects External Independent Monitoring and Supervision Organization Responsibility At the time that the necessity of land acquisition (or taking of other assets) is recognized, the project entities should assign responsibility for consultations with project-affected persons, preparation of remedial plans, and resettlement implementation. Specific responsibilities to be assigned include, at a minimum: (a) identification of impacts and project-affected persons; (b) establishment of remedial measures consistent with the general principles stated above; (c) consultations with project-affected persons, and dissemination of relevant information to them in a timely manner; (d) prior consultations with the Bank (or other donor agencies, as relevant) in selection of activities necessitating land acquisition or resettlement, and in formulation of remedial plans; (e) coordination with any local government units sharing responsibility for any aspects of resettlement preparation or implementation; (f) timely payment of compensation, and provision for delivery of any other forms of assistance; (g) monitoring of effectiveness of resettlement implementation; (h) responding to grievances presented by project-affected persons. Public participation, consultation and grievance channels Public participation and consultation will be paid much more attention in this project. The taking of land or other assets, and the preparation of remedial plans require consultation with project-affected persons. Prior to taking of land or other assets, the responsible governmental unit will visit affected villages or households to discuss the location and quantity of assets to be acquired, and compensation rates and any other rehabilitation measures to be provided. Following consultations, any remedial plans will be disseminated to the project-affected persons in a manner accessible to them. Information disseminated to the project-affected persons will include: (i) compensation rates for all categories of affected assets; (ii) eligibility 5 Policyframe Resettlement Policy Framework For Environment Revolving Fund of China Liao River Basin Project criteria for all other forms of assistance that may be provided; and (iii) grievance procedures (including specific contact information for initiating, or following up on, grievances). If project-affected persons are not satisfied with proposed resettlement arrangements, or if they are dissatisfied with actual resettlement implementation, they can first seek satisfaction through village councils (or other local leaders). If this does not result in resolution of issues, project- affected persons can also make grievance verbally or in written form to authorities as specified in the remedial plan. Specified authorities should record receipt of grievances and reply to the project-affected person or persons within ten days after receiving the grievances. If the grievances or disputes cannot be resolved through administrative action, the project-affected person can initiate legal proceedings, in accordance with provincial and national law. Special attention will be paid to the participation of individuals and entities affected by the project throughout the process of compilation and implementation. Transparent and efficient grievance redressing procedure is established for the project as follows: Stage I If people or entities affected by the project are dissatisfied with the resettlement arrangements they can appeal to concerned departments orally or in writing. And concerned department should settle the grievance within 2 weeks. Stage II If people or entities affected by the project are dissatisfied with the solution of stage I, they can then appeal to up level administration organization and the resolution on complaint has to be formulated within 2 weeks. Stage III If people, shops or entities affected by the project are still dissatisfied with the solution of stage II, they can appeal to the organization in charge of the implementation, monitoring and arbitration of house demolition and the municipal Land Administration Bureau, the organization in charge of monitoring and arbitration of land requisition, and submit the dispute for arbitration. The arbitration organization will make arbitration on the complaint within 10 days. Stage IV If people, shops or entities affected by the project are still dissatisfied with the arbitration, they can appeal to the people's court in accordance with the administration procedure law of PRC after receiving the decision of the arbitration organization. The people, shops or entities affected by the project can make an appeal on any issues of resettlement. 6 Policyframe Resettlement Policy Framework For Environment Revolving Fund of China Liao River Basin Project The PAPs will be informed of the procedures above mentioned grievance redressing through meetings and other ways to ensure that they are clear about their rights of grievance and appeals and can protect their own rights. Implementation process of resettlement activities The basic principles to ensure the progress of land requisition, house demolition and resettlement fit to the project construction progress is showed as follows: The schedule of land use of the project will be determined according to the schedule of sub- project of environment revolving fund. Sufficient time should be left for land requisition and resettlement before project construction beginning. Land requisition shall be completed one month before land use of project. Monitoring and evaluation According to Operational Directive 4.30 of the World Bank, the implementation of land acquisition, house demolition and resettlement activities should be monitored regularly to ensure those action proceed and realize the resettlement objective. There are 2 kinds of monitoring mechanism for resettlement action which are internal monitoring and the external monitoring carried out by a independent institution. The internal monitoring is carried out by project implementing unit and LEPB, to ensure that the schedule and principles in the resettlement arrangement will be followed. The purpose of internal monitoring is to make the resettlement organizations fulfil their duties efficiently during the implementation of the resettlement activities. Independent monitoring organization is responsible for conducting independent monitoring and evaluation on activities of land requisition, demolition and resettlement regularly, mainly including: Operational efficiency of resettlement network; Progress and compensation of land requisition, demolition and rehabilitation and resettlement; Resettlement and restoration of people and entities to be dismantled; Investigation and analysis of living level of PAPs; 7 Policyframe