PRC: Henan Sustainable Agriculture and Productivity ... · fruit/vegetable(50,000ton/year) and...

Social Monitoring Report

This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Number: 38662-023 March 2011

PRC: Henan Sustainable Agriculture and Productivity Improvement Project

Prepared by: North China Institute of Water Conservancy and Hydroelectric Power

For Sanmenxia Municipal PMO

Resettlement Completion Report

on

Advanced Fruit Processing Project for Yuanfen Fruit Co., Ltd, Sanmenxia city

Concentrated Fruit Juice Project (30,000 ton/year) for Lingbao Amusi Fruit Juice

Co. Ltd

Resettlement monitoring institute-North China Institute of Water Conservancy and Hydroelectric

Power

March 2011

ADB financed Henan high efficiency agriculture comprehensive development project

Project manager： Gou Yuanyou

Chief Editor： Gou Yuanyou tan zhiguang

Translation： Liu Qiuhe

Proofread： Li Haiying

Editor’s group： Gou Yuanyou tan zhiguang

Wen Xifu Gou Wenjuan

Zhang Jie Li Haiying

ADB financed Henan high efficiency agriculture comprehensive development project-Resettlement completion report 2011.4

Resettlement monitoring institute-North China Institute of Water Conservancy and Hydroelectric Power Page 1 of 67

Contents

Preface ....................................................................................................................................... 1 1.Project introduction-Yuanfen company and Amusi company ................................................ 2 1.1 General description of subprojects ...................................................................................... 2 1.2 Property on the land ............................................................................................................ 4 2. Resettlement compensation criteria ...................................................................................... 5 2.1 Resettlement compensation criteria .................................................................................... 5

2.1.1 Land acquisition compensation criteria ..................................................................... 5

2.1.2 Compensation on property on the land ...................................................................... 5

2.2 Taxes and charges on project land acquisition and other expenses for resettlement ........... 6 2.2.1 The Yuanfen company ............................................................................................ 6

2.2.2 The Amusi company .............................................................................................. 7

3. Total Cost of Project Resettlement ........................................................................................ 8 3.1 Yuanfen company ................................................................................................................ 8

3.1.1 Resettlement cost in total .......................................................................................... 8

3.1.2 Management of resettlement fund and disbursement ................................................ 8

3.2 Amusi company ................................................................................................................. 10 3.2.1 Resettlement cost in total ........................................................................................ 10

3.2.2 Management of resettlement fund and disbursement .............................................. 12

4.Implementation of resettlement action plan ......................................................................... 12 4.1 Resettlement implementation ............................................................................................ 12 4.2 Disbursement of resettlement fund ................................................................................... 14 4.3 Procedures for disbursements ........................................................................................... 15 4.4 Implementation of economic recovery for resettlement .................................................... 16

4.4.1 Yuanfen Company ................................................................................................... 16

4.4.2 Amusi Company ...................................................................................................... 17

4.4.3 Comparison between implementation and plan of resettlement .............................. 19

5. Project Resettlement Policy ................................................................................................ 20 5.1 Laws, regulations and policy on project resettlement ....................................................... 20 5.2 Project resettlement objectives and principles .................................................................. 22

5.2.1 Resettlement objective s .......................................................................................... 22

5.3 The compensation criteria ................................................................................................. 23 5.4 The qualifications and rights for compensation ................................................................ 23 5.5 The implementation of resettlement policy ....................................................................... 23 6. Monitoring and assessment on social and economic development in the resettlement community .............................................................................................................................. 24 6.1 The structure of the resettlement sample families ............................................................. 24 6.2 The economic status and income of the resettlement sample families .............................. 25

6.2.1 Resettlement sample families-participation and income in industry and sideline

activities ........................................................................................................................... 25

6.2.2 Resettlement sample families-participation and income in agriculture and sideline

activities ........................................................................................................................... 26

6.2.2.1 Agriculture activities on the contracted farmland ....................................................... 26 6.2.2.2 Agriculture income ...................................................................................................... 27 6.2.2.3 Agriculture and sideline income .................................................................................. 27

6.2.3 Total family income and per capita net income ....................................................... 27



6.3 Resettlement sample families-Expenses on production and living cost ............................ 28 6.3.1 Cost of production ................................................................................................... 28

6.3.2 Cost of living ........................................................................................................... 29

6.4 The living standards of the resettlement sample families.................................................. 31 6.5 The resettlement sample families-living conditions and housing conditions .................... 33 6.6 The resettlement sample families-the social adaptability .................................................. 33 6.7 The resettlement community-environment, healthcare/sanitary, education and training .. 33

6.7.1 The community environment, health care and sanitary, education, etc ................... 33

6.7.2 Technical training offered to the resettlement people .............................................. 33

6.8 Safeguard of women’s right in the resettlement families .................................................. 34 6.9 The vulnerable groups in the resettlement families ........................................................... 34 6.10 The comparative analysis of economic status of families before and after resettlement 35

6.10.1 Huangcun resettlement families ............................................................................ 35

6.10.2 Xiacun resettlement families ................................................................................. 36

7.Public participation and mechanism for grievance and complaint ..................................... 38

7.1 Public participation ........................................................................................................... 38 7.1.1 Information disclosure ............................................................................................ 38

7.1.2 The procedure of public participation ..................................................................... 38

7.2 Grievance and complaint ................................................................................................... 39 7.2.1 Mechanism for grievance and complaint ................................................................ 39

7.2.2 Channel for grievance and complaint ...................................................................... 39

7.2.3 Procedures for grievance and complaint ................................................................. 39

7.2.4 Processing for grievance and complaint .................................................................. 39

8.Project organization and management .................................................................................. 41

8.1 The resettlement institutes/agencies .................................................................................. 41 8.2 The resettlement staff ........................................................................................................ 41 8.3 The resettlement institutes/agencies-composition and specifications ............................... 42 8.4 Office conditions of the resettlement institutes/agencies .................................................. 42 8.5 Operation and internal management of the resettlement institutes/agencies ..................... 42 8.6 Training of staff on resettlement ....................................................................................... 42

9. Monitoring and assessment .................................................................................................... 43

9.1. Monitoring and assessment report .................................................................................... 43 9.1.1 Internal monitoring .................................................................................................. 43

9.1.2 Independent external monitoring and assessment ................................................... 44

9.1.2.1 The independent external monitoring and assessment-objectives ........................ 44

9.1.2.2 The independent external monitoring and assessment-implementation ............... 45

9.1.2.3 Special considerations .......................................................................................... 46

9.2 Monitoring report-contents and submission ...................................................................... 47 10.Summary on the project resettlement .................................................................................. 48

10.1 Project resettlement-good practices ................................................................................ 48 10.2 Project resettlement-lessons learnt and recommendations .............................................. 48 10.3 Project resettlement-outstanding issues .......................................................................... 48

Reference ..................................................................................................................................... 49



ADB financed Henan high efficiency agriculture comprehensive

development project resettlement completion report

Preface

In accordance with the Loan Agreement signed by the government of The People’s Republic of

China and The Asian Development Bank (thereafter ADB), and the project Resettlement Action

Plan ( thereafter RAP) for the subproject of advanced fruit processing of Sanmenxia city Yuanfen

Fruit Co., Ltd (thereafter Yuanfen company) and subproject of concentrated fruit juice

(30,000ton/year) of Lingbao Amusi Fruit Juice Co., Ltd (thereafter Amusi company), delegated by

the Sanmenxia municipal finance bureau, a team composed of social and resettlement experts and

specialists from the Resettlement monitoring institute-North China Institute of Water Conservancy

and Hydroelectric Power (NCWU) conducted the monitoring on the implementation of the project

resettlement (from Apr 2 to 4, 2011). The team paid site visit to the resettlement community and

held meetings, discussions, and interviews with the project related people regarding the social and

economic status of the resettlement people and the development of the local economy. This report

is drafted based on the findings and outcome of the site visit.

This report is aimed to make a comprehensive description on the implementation of the subproject

resettlement of Yuanfen company and Amusi company regarding the scope of resettlement, the

implementation of resettlement, the resettlement policy, the allocation of resettlement

compensation to the project affected people, the moving and resettlement of the families and the

way to resume production and living condition, the social and economic development of the

resettlement community, information disclosure and public participation, etc. The objective of the

project resettlement monitoring is to make sure that the project resettlement action plan (RAP) is

carefully carried out and to safeguard the legal rights and interests of the project affected people

with proper compensation and restore production as soon as possible after resettlement. The

findings will be included in the report to offer good practices and lessons learnt, as well as

recommendations and references for better practice.



1.Project introduction-Yuanfen company and Amusi company

1.1 General description of subprojects

The subprojects in this report refer to the projects of Sanmenxia city Yuanfen Fruit Co., Ltd and

Lingbao city Amusi Fruit Juice Co., Ltd.

Yuanfen company: The project is to build up an apple orchard of 60,000mu for high-acidity

apples, to build up a fruit processing plant with production of 90,000ton/year (with 50,000ton/year

concentrated fruit juice and 40,000ton/year fruit residue, as well as 1,000ton/year apple pectin).

The fruit processing plant is located at the Huangcun village, Daying town of Shanxian county

with area of 200.1mu. Since the local farmers are willingly to shift from growing ordinary apples

to high-acidity apples for better economic return, there will be no involuntary resettlement in the

project.

Stated in the original summary of project RAP that the fruit processing plant was planned to start

construction in April, 2008 and completed in September, 2008 with 6 months of construction

period (the land acquisition should be conducted from February, 2008 to March, 2008). The land

acquisition was delayed and completed in February, 2009 due to the complicated procedures and

formalities for the approval of project land acquisition by local and central government.

Till the end of February, 2009 (February 28, 2009), all of the resettlement fund was allocated and

disbursed to the project resettlement people with the total of 16.0874million yuan in accordance

with the project RAP.

The permanent land acquisition for the project is 200.1mu including irrigated land of 94.32mu,

vegetable field of 23.94mu, vegetable greenhouse of 50.56mu, and garden plot of 31.28mu. The

total number of project affected people is 463 persons from 118 families (5 farmer’s groups). All

the project affected families lost part of their farmland. There is no need for moving of people and

no temporary land use. Till the end of 2009, all of the project affected people have resumed their

production and living conditions. It shows that the legal rights and interests of the resettlement

people are carefully safeguarded and the social and economic development of the resettlement

community is kept in a good way.

Amusi company: The project is to build up a fruit production base 105,000mu and fruit

processing plants with production of 100,000ton/year including concentrated fruit juice of

30,000ton/year, canned fruit/vegetable of 50,000ton/ year, and concentrated fruit syrup of

20,000ton/year. Since the local farmers are willingly to shift from growing crops/ordinary fruits to

contracted fruits/vegetables for better economic return, there will be no involuntary resettlement

for the fruit production base. There is no land acquisition for the plant of canned

fruit/vegetable(50,000ton/year) and fruit syrup plant(20,000ton/year) since the Amusi company

had obtained the land use right 10 years ago. The concentrated fruit juice plant(30,000ton/year) is

located at Xiacun village, Yangdian town of Lingbao city with land acquisition of 75.5mu for

permanent use. The land acquisition will include farmer’s garden plot of 60.959mu and

village/group collective land (roads and irrigation canals) of 14.541mu. The total number of

project affected people is 116 persons from 44 families (4 farmer’s groups). All the project

affected families lost all/part of their farmland (40 families lost part of their farmland and the rest

lost all). There is no need for moving of people and no temporary land use.



Table 1-1 The project affected people and permanent land acquisition

Com

pany Village

Number

of

families

popul

ation

labo

r Project land acquisition（mu ）

Sub-

total

Sub-

total

Sub-

total

irrigate

d land

vegetab

le field

greenhouse

vegetable

field

garden

plot

Yua

nfen

Huangcu

n(Total) 118 463

339 200.

194.32 23.94 50.56 31.28

Group

15 25 101

77 48.5

523.62 3.92 4.83 16.18

Group

16 37 141

98 57.8

329.97 4.01 13.39 10.46

Group

17 28 106

80 48.3

217.61 9.88 18.47 2.36

Group

19 13 44

31 12.5

95.03 3.04 4.52 0

Group

20 15 71

53 32.8

118.09 3.09 9.35 2.28

Amu

si

Xiazhua

ng

(Total)

44 166 94 75.5 20.767 40.192

Group

13 6 20 8 7.6 5.3 2.3

Group

14 14 58 35

21.5

33.558 17.972

Group

15 18 69 38

22.4

2911.909 10.52

Group

16 6 19 13 9.4 0 9.4

Village

collectiv

e

Road(s) 14.5

41

Remarks：See Table 3-1 and 3-2 for detail about the resettlement fund

Stated in the original summary of project RAP that the concentrated fruit juice plant

(30,000ton/year) was planned to start construction in April, 2008 and completed in September,

2008 with 6 months of construction period (the land acquisition and resettlement should start in

early October, 2006, and completed before end of February, 2008). The land acquisition was

delayed and completed in February, 2009 due to the complicated procedures and formalities for

the approval of project land acquisition by local and central government.

Till the end of February, 2009 (February 28, 2009), the entire resettlement fund was allocated and

disbursed to all of the project resettlement people with the total of 2.6099million yuan in

accordance with the project RAP. See Table 1-1 for detail.



1.2 Property on the land

The indicators of number of property on the land are shown in Table 1-2. For the subproject of

Yuanfen Company, the land acquisition is from Huangcun village with 50.56mu of vegetable

greenhouses, 2 wells, 19 electric poles, 10 tombs, trees and young crops (94.32mu), and 23.94mu

vegetable field of 23.94mu. For the subproject of Amusi company, the land acquisition is from

Xiacun village with land and trees and young crops (1,223 fruit trees with age of 8 years and above,

1017 fruit trees with age of 4-7 years, 71fruit trees with age of 2-3 years, land of 18.828mu with

young crops).

Table 1-2 List of property on the land in the subprojects

Company Name of

village

SN Project Unit Quantity

Yuanfen Huangcun 1 Greenhouse for vegetables mu 50.56

2 wells pie

ce

2

3 Electric pole piece 19

4 others compensation

4.1 trees piece 47.28

arbor trees piece 16

fruit trees mu 31.28

4.2 young crops compensation

irrigated land mu 94.32

vegetable field mu 23.94

4.3 Tombs piece 10

Amusi Xiacun 1 fruit trees (8 years and above) piece 1223

2 fruit trees (4-7 years) piece 1017


4 land bearing young crops mu 18.828



2. Resettlement compensation criteria

2.1 Resettlement compensation criteria

2.1.1 Land acquisition compensation criteria

According to the land compensation standards issued by the State Land Resource Bureau of

Sanmenxia city in 2007 and the project resettlement action plan. There total of project land

compensation and resettlement subsidy is 30,000yuan/mu. The average annual production of the

irrigated land in previous three years is 1,200yuan/mu. The project land compensation is set to

12,000yuan/mu which is 10 times of the average annual production, and the resettlement subsidy

is 18,000yuan/mu which is 15 times of the average annual production. See Table 2-1-1 for detail.

Table 2-1-1 Land acquisition compensation criteria

Average annual

production for the

previous three

years (/mu)

Land

compensation

yuan/mu

Resettlement

subsidy

yuan/mu

Land

compensati

on weight

Resettlemen

t subsidy

weight

land

compensation

and

resettlement

subsidy weight

1,200 12,000 18,000 10 15 25

2.1.2 Compensation on property on the land

Table 2-1-2 Compensation criteria for property on the land

Company Village SN Item Unit Unit

price

Yuanfen

company Huangcun

1 greenhouse

vegetables greenhouse mu 20000

2 small size water and hydro-power facilities

wells piece 45000

3 infrastructure

electric pole piece 300

4 compensation for others

4.1 trees

trees (timber) piece 50

fruit trees mu 22400

4.2 young crop compensation

irrigated land mu 3000

vegetable field mu 6600

4.3 tomb piece 300

Amusi

company Xiacun

1 fruit trees (8 years and above) piece 1223



4 land bearing young crops mu 18.828

The compensation standards for the property on the land is drafted in accordance to the



compensation policy of Sanmenxia city and the project RAP. Project land acquisition

compensation criteria for property on the land is shown in Table 2-1-2.

For Huangcun village, the compensation for vegetable greenhouses is 20,000yua/mu, for wells is

45,000yuan/piece, for electric poles is 300yuan/piece, for timber trees is 50yuan/piece, for fruit

tree field is 22,400yuan/m, for land bearing young crops is 3,000yuan/mu, for vegetable field is

6,600yuan/mu, for tombs is 300yuan/piece.

For Xiacun village, all the land is fruit orchard with fruit trees. The compensation is calculated

according to the age of the trees, that is, 71yuan/piece for fruit trees of 2-3years, 1,017yuan/piece

for fruit trees of 4-7years, 1,223yuan/piece for fruit trees of 8 years and above. It is

18.828yuan/mu for the land bearing young crops.

2.2 Taxes and charges on project land acquisition and other expenses for

resettlement

2.2.1 The Yuanfen company

Table 2-2 -1 Taxes and charges for Yuanfen company land acquisition

SN ITEM CHARGES REFERENCE

DOCUMENTARY COLLECTED BY

1 tax on farmland use 8,004yuan/mu NDRC [1987]027 State land resource

bureau (delegated)

2 farmland open-up fee 6,667 yuan/mu The state law on

land management

State land resource

bureau

3 charge for new land

use 10,672 yuan/mu

Notice on new land

use fee

State land resource

bureau

4 land acquisition

management fee 1,667.5yuan/mu

State land resource

bureau

5 Survey and design fee 20,000 yuan Resettlement report

draft agency

6 management charge

for implementation

3% x

resettlement

compensation

Resettlement

implementation agency

7 technical training fee

0.5% x

resettlement

compensation

Resettlement

implementation agency

8 external monitoring

assessment fee 20,000 yuan

external monitoring

agency

9 basic reserve fund

10% x

(resettlement

compensation+ot

her fees+ tax)

10 preparatory fund for

price variation

5% x

(resettlement

compensation+ot

her fees+ tax)



According to the rules and regulations stated in Land Law of the People’s Republic of China, the

local government is supposed to set up the standards of the taxes and charges for land acquisition

of the collective land taking into consideration the general condition of local social and economic

development. The project land for Yuanfen company is located at the industry development zone

of Sanmenxia city，the taxes and charges for land acquisition is higher than that in the countryside.

See Table 2-2-1 for detail.

2.2.2 The Amusi company

The project land for Amusi company is located at Xiacun, Yangdian town of Lingbao county.

Even though the site is with good condition for transportation and communication, it is located at

the countryside, the taxes and charges for land acquisition is relatively low. See Table 2-2-2 for

detail.

Table 2-2-2 Taxes and charges for Amusi company land acquisition

SN ITEM CHARGES REFERENCE

DOCUMENTARY COLLECTED BY

1 tax on

farmland use

6yuan/m2 ，

(4,002yuan/mu) NDRC [1987]027

State land resource

bureau (delegated)

2 farmland

open-up fee 5,200yuan/mu

The state law on land

management

State land resource

bureau

3 charge for new

land use 13,340yuan/mu

Notice on new land use

fee

State land resource

bureau

4

land

acquisition

management

fee

2.8% x

resettlement

compensation

State land resource

bureau

5 Survey and

design fee 20,000yuan

Resettlement report

draft agency

6

management

charge for

implementatio

n

3% x resettlement

compensation

Resettlement

implementation

agency

7 technical

training fee

3% x

resettlement

compensation

Resettlement

implementation

agency

8

external

monitoring

assessment fee

20,000yuan external monitoring

agency

9 basic reserve

fund

10% x (resettlement

compensation+other

fees+ tax)

10

preparatory

fund for price

variation

5% x (resettlement

compensation+other

fees+ tax)



3. Total Cost of Project Resettlement

The land acquisition and resettlement compensation for the above mentioned project has been

completed till the end of February, 2009, including the disbursement of the compensation the

project affected people. The cost of land acquisition and resettlement will be discussed in the

following sections.

3.1 Yuanfen company

3.1.1 Resettlement cost in total

All the cost and expenses on land acquisition and resettlement is counted into the project

resettlement cost. The total cost is 16.0874million yuan based on the price index of July, 2007

including farmer’s resettlement compensation of 8.2553million yuan, other cost of 328,900yuan,

taxes and charges of 5.4048million yuan, contingency expenses of 2.0984million yuan. The

project land acquisition and resettlement compensation was self-raised by the Yuanfen Company.

See Table 3-1 for detail.

At the time of site visit for this report, all farmer’s resettlement compensation has been allocated

and disbursement has been completed to the project affected people with the total of 8.2553million

yuan before the action of land acquisition. Other cost has been disbursed.

Taxes and charges have been disbursed. There was no expense for contingency in this project due

to short term of construction period and stable market price.

3.1.2 Management of resettlement fund and disbursement

In order to ensure that the project affected people to timely and fully receive the resettlement

compensation and resume their production and living conditions, certain measurements should

be taken as following:

a. The full amount of compensation including land and resettlement should be disbursed to

the people and all the issues should be settled down as stated in the project resettlement action

plan before the action of land acquisition to ensure the safeguard of the legal rights and

interests of the people;

b. Project management mechanisms on financial control should be set up at different

government level and with the assistance of internal/external supervision and monitoring

institutes/agencies to guarantee the smooth process of resettlement work and allocation of

fund;

c. The data on the information of land, property on the land, etc. should be publicized for

the supervision of public to avoid mistakes and ensure justice and fairness;

d. Upon confirmation of the compensation for the families, the local government should put

it into special account for each family and deliver the bank savings book to the families for

signature of reception;

e. The resettlement compensation should be taken as the fund for the families to resume

their agriculture/industry and sideline production and education of children;



f. All of the resettlement works including the disbursement of compensation should be

under the supervision of the government functional departments and villager’s committee, as

well as the villager’s representatives to ensure the satisfactory of related parties;

The villager’s committee decided to deposit the compensation for collective land which is

600,300yuan into special bank account as the reserve fund for development. The fund will be

managed with certification by the three member group elected by the villager’s representatives.

The interest accrued will be used for public utilities, education and subsidy to the poor

families with discussion and consultation of all the villagers.

Table 3-1Yuanfen company project resettlement compensation

SN Item Unit

Compen-

sation

unit price

(yuan

/unit)

land acquisition

composition to

family

Collective own Total

Quantity

（mu）

Compens

ation

(10,000

yuan)

Quantit

y

Compen-

sation

(10,000

yuan)

Quan-

tity

Compen-

sation

(10,000

yuan)

1 Resettlement

compensation 765.50 60.03 825.53

1.1 land

compensation 30,000 200.1 540.27 200.1 60.03 200.1 600.30

1.1.1 land

compensation 200.1 180.09 200.1 60.03 200.1 240.12

irrigated land mu 12,000 94.32 84.89 94.32 28.30 94.32 113.18

vegetable field mu 12,000 23.94 21.55 23.94 7.18 23.94 28.73

Vegetables

greenhouse mu 12,000 50.56 45.50 50.56 15.17 50.56 60.67

garden plot mu 12,000 31.28 28.15 31.28 9.38 31.28 37.54

1.1.2 Resettlement

subsidy 200.1 360.18 360.18

irrigated land mu 18,000 94.32 169.78 169.78

vegetable field mu 18,000 23.94 43.09 43.09

Vegetables

greenhouse mu 18,000 50.56 91.01 91.01

garden plot mu 18,000 31.28 56.30 56.30

1.2 shelters 50.56 101.12 50.56 101.12

Vegetables

greenhouse mu 20,000 50.56 101.12 50.56 101.12

1.3 Water/electric

facilities 2 9 2 9

wells piece 45,000 2 9.00 2 9.00

1.4 infrastructure

facilities 19 0.57 19 0.57

electric pole piece 300 19 0.57 19 0.57

1.5 others 114.54 114.54



compensation

1.5.1 trees 47.28 70.1472 47.28 70.1472

21-25 ㎝ arbor

trees piece 50 16 0.08 16 0.08

fruit trees mu 22,400 31.28 70.07 31.28 70.07

1.5.2 young crops 44.10 44.10

irrigated land mu 3,000 94.32 28.30 94.32 28.30

vegetable field mu 6,600 23.94 15.80 23.94 15.80

1.5.3 tomb piece 300 10 0.30 10 0.30

2 others expenses 32.89

Survey/design

cost

10,000

yuan 2.00

Administrative/

management for

implementation

10,000

yuan 3.0% 825.53 24.77

Technical

training

10,000

yuan 0.5% 825.53 4.13

external

monitoring

assessment

10,000

yuan 2.00

3 Taxes and

charges 540.48

farmland use

tax mu 8,004 200.1 160.16

farmland

open-up fee mu 6,667 200.1 133.41

Use of new land

for construction mu 10,672 200.1 213.55

land acquisition

administrative

charge

mu 1,667.5 200.1 33.37

4 contingency 209.84

Basic

preparatory

fund

10,000

yuan 10.0% 1398.91 139.89

Reserve for

price deviation

10,000

yuan 5.0% 1398.91 69.95

Total 1608.74

3.2 Amusi company

3.2.1 Resettlement cost in total

All the cost and expenses on land acquisition and resettlement is counted into the project



resettlement cost. The total project resettlement investment is 5.05million yuan based on the price

index of July, 2007 including land acquisition compensation and resettlement subsidy of

2.265million yuan, compensation for property on the land of 344,900yuan. Taken together, and

resettlement compensation of 2,609,900yuan, other cost of 131,300yuan, taxes and charges of

1.65million yuan, contingency expenses of 658,700 yuan. The project land acquisition and

resettlement compensation was self-raised by the Yuanfen Company. See Table 3-2 for detail.

Table 3-2 Amusi company project resettlement compensation

SN Item Unit

Compensation unit

price (yuan /unit)

land acquisition composition to family

Collective own Total

Quantity （mu）

Compensation (10,000 yuan)

Quantity

Compensation

(10,000 yuan)

Qua-ntity

Compensation

(10,000yuan)

1 Resettlement compensation

199.08 61.91 260.99

1.1 land compensation 164.59 61.91 226.50

Family contracted land

compensation mu 12000 60.959 54.86 60.959 18.29 60.959 73.151

Family resettlement

subsidy mu 18000 60.959 109.73 0.00 0 109.726

Collective road & land mu 30000 0.00 14.541 43.62 14.541 43.62

1.2 Property on land 34.49 0.00 34.49

1.2. Trees 2311 33.93 0 0.00 2311 33.93

fruit trees(8 years &

above) piece 210 1223 25.68 0.00 1223 25.68

fruit trees(4-7years) piece 80 1017 8.14 0.00 1017 8.14

fruit trees(2-3years) piece 15 71 0.11 0.00 71 0.11

1.2.2

young crops compensation

mu 300 18.828 0.56 0.00 18.83 0.56

2 Others costs 13.13

Survey/design fee 2.00

Implementation management fee

10,000 yuan

3.0% 260.99 7.83

Technical training 10,000 yuan

0.5% 260.99 1.30

external monitoring

assessment 260.99 2.00

3 Taxes & fees 165.01

farmland use tax mu 4002 69.959 28.00

farmland open-up fee mu 5200 69.959 36.38

Use of new land mu 13340 69.959 93.33

land acquisition

administrative fee 10,000 yuan

2.80% 260.99 7.31

4 Contingency 65.87

Basic preparatory fund 10,000 yuan

10.0% 439.13 43.91

Reserve for price

deviation 10,000 yuan

5.0% 439.13 21.96

Total 10,000 yuan

505.00

At the time of site visits for this report, all the resettlement fund has been allocated and

disbursement has been completed in Feb 2009 and disbursement has been completed to the project

affected people with the total of 8.2553million yuan before the action of land acquisition. Other

cost has been disbursed before Feb in 2009. Taxes and charges of 1,650.1thousand have been



disbursed. There was no expense for contingency in this project due to short term of construction

period and stable market price.

3.2.2 Management of resettlement fund and disbursement

In order to ensure that the project affected people to timely and fully receive the resettlement

compensation and resume their production and living conditions, certain measurements should

be taken as following:

a. The full amount of compensation including land and resettlement should be disbursed to

the people and all the issues should be settled down as stated in the project resettlement action

plan before the action of land acquisition to ensure the safeguard of the legal rights and

interests of the people;

b. Project management mechanisms on financial control should be set up at different

government level and with the assistance of internal/external supervision and monitoring

institutes/agencies to guarantee the smooth process of resettlement work and allocation of

fund;

c. The data on the information of land, property on the land, etc. should be publicized for

the supervision of public to avoid mistakes and ensure justice and fairness;

d. Upon confirmation of the compensation for the families, the financial staff of Amusi

company should put it into special account for each family and deliver the bank savings book

to the families for signature of reception;

e. The resettlement compensation should be taken as the fund for the families to resume

their agriculture/industry and sideline production and education of children;

f. All of the resettlement works including the disbursement of compensation should be

under the supervision of the government functional departments and villager’s committee, as

well as the villager’s representatives to ensure the satisfactory of related parties;

Will the discussion and consultation of all the villagers, the villager’s committee decided to

use the compensation for collective land which is 61,9100yuan for the rehabilitation of roads

and school buildings.

The supervision and monitoring assessment shows that the project resettlement has been

conducted in accordance with the project resettlement action plan and the data for

compensation was carefully collected, calculated, verified. The compensation was disbursed

to the project affected people timely and in full amount. With the guidance of the rules and

regulations stated in the project action plan, the work was done under the close supervision of

local government and public to ensure justice and fairness.

4.Implementation of resettlement action plan

4.1 Resettlement implementation

The project resettlement was carried out by the project implementation agency under the

leadership and supervision/internal monitoring of the government of Sanmenxia city, project



county and related functional departments including finance bureau, supervision bureau,

disciplinary bureau, audit bureau, etc. The expert team from the resettlement monitoring institute

of North China Institute of Water Conservancy and Hydroelectric Power was delegated to carry

out the project external supervision and monitoring for the project resettlement to ensure the

processing of work and the legal rights and interests of the project affected people. Figure 4-1

shows the structure of project organization and specifications of related parties.

Figure 4-1 Resettlement organization, supervision, and monitoring

The process of resettlement implementation:

- To set up resettlement management offices；

- To obtain the understanding of public on the project objective and impact with meetings,

discussions, posters and distribution of brochures. See Figure 4-1-2a and b;

- To collect data and comments from the villager’s representatives with discussions and

interviews;

- To post the data list for compensation on land and resettlement according to the Land Law

and local government policy for public participation and information disclosure;

- Put the handling of the compensation for collective own land and property under the

supervision and monitoring of all the villagers to make sure it is used in the right way;

- To conduct technical trainings for the farmers and help them resume production and living as soon

as possible;

The measurement taken above is to guarantee the implementation of the project in accordance to

the resettlement action plan and safeguard the legal rights and interests of the project affected

people, as well as the local community social and economic development.

Yuanfen company/Amusi company

Villager’s committee

Project affected people/family

town government

Supervision

Gov. of project county and functional depts

supervision

External monitoring

monitoring

Sanmenxia city PMO monitoring Monitoring

monitoring



Figure 4-1-2a Distribution of paper for project information

Figure 4-1-2b Posting and description of the resettlement policy

4.2 Disbursement of resettlement fund

All of the project resettlement compensation disbursement has been completed till the end of

February 28, 2009.



4.3 Procedures for disbursements

As shown in Figure 4-3, the disbursement of the project resettlement compensation was well

organized and with effective procedures:

Step one: Site survey and measurement is conducted by professional teams hired by the project

implementation agency and the data is posted for verification;

Step two: The project affected people will check the data and sign for confirmation (see attached

pictures);

Step three: The administrative of the industry development zone of Sanmenxia city will deposit

the fund transferred from the Yuanfen company into local bank account and the people will

receive the bank book and sign for reception. The same procedure applies to the compensation for

collective own land and property;

Step four: The Amusi Company will deliver the disbursement directly to the project affected

people and to the villager’s committee for compensation on collective land and property;

Compensation funds should be paid in accordance with the relevant provisions of Sanmenxia City, that is to say, the businesses are managed by the office of the industry development zone of Sanmenxia City. Therefore, several of compensation should be paid by Yuanfen Company as mentioned earlier. Arms company site in Lingbao the rural areas and the government did not set up the office, so several of compensation funds should be paid directly to resettlement and the village committee. The entire process of data collection, verification, and publication was under the close supervision

and monitoring of project county authorities and related government functional departments,

including the towns and villages. The villager’s committee is responsible for the assistance of

project implementation and collection of villager’s comments and recommendations. The fund

was checked and audited periodically to make sure that it was properly handled. The internal

monitoring was carried out by the Sanmenxia city finance bureau while the expert team from the

Resettlement monitoring institute from North China Institute of Water Conservancy and

Hydroelectric Power was delegated for external monitoring and supervision. The people could

send their grievance and complaint to the villager’s committee and up level government to ensure

their legal rights and interests. See Figure 4-3 for the procedures.

The monitoring shows that the resettlement work was carried out in accordance to the laws and

regulations as well as the resettlement action plan of the project. It was transparent and open with

the participation of public especially the project affected people.

Figure 4-3 Procedures for disbursement of project resettlement compensation

Amusi company

Villager’s committee

Resettlement families

Town/village government

Supervision

Verification and disburse

posting

Collection and report

Project county/city government

Supervision

Internal/ external monitoring

monitoring

Feedback/com

plaint Supervision

Yuanfen company

Industry park



4.4 Implementation of economic recovery for resettlement

Industrial and sideline activity is a main avenue to develop social and economic environment in the resettlement community. Urbanization has become an inevitable trend of economic development. So the governments of Sanmenxia, Shanxian and Lingbao encourage and help the affected people to restore the income and living standard by training them, and help them to find work in Jingjintang region and the southeast coastal areas. The labor management of Sanmenxia government actively entered into a labor contract with management of Jingjitang region for inorder to priority in employing the affected people in factories that need more labors as industry develops in Sanmenxia. Those were skilled willing went elsewhere to seek employment.

4.4.1 Yuanfen Company

Based on RAP, the land acquisition (land lost for the affected people) has been shown by the table 4-4-1-1. 14 samples lost 60% or more land, and 27 samples lost 50%-60% land. The project affected their living. So the implementation has been taken by Sanmenxia and Shanxian government (table 4-4-1-2) to restore economy and living by agriculture, husbandry, business and jobs (table 4-4-1-3). Governments take the implement prior to employ the affected people because the factories need the more labor with the development of industrial in Sanmenxia. These implement increased the income of the affected people (the increased income has been shown in chapter 6). Table 4-4-1-1 Yuanfen company land acquisition (land-lost)

Samples Rate of land-lost percentage samples of land-lost

5 10-9.9% 4.2%

9 20-29.9% 7.6%

32 30-30.9% 27.1%

31 40-40.9% 26.3%

27 50-50.9% 22.9%

7 60-60.9% 5.9%

7 70-80% 5.9%

Table 4-4-1-2 Yuanfen company – skill training Date Objects trained Population content remarks

2008.08 All affected labor 339 Technical training As RAP

2009.06 All affected labor 339 Technical training in

juice factory

2009.09 Other trained 50 Other skills

2010.02 All farmer in

Sanmenxia

28 Construction technology As the labor contract

between Sanmenxia

and Jingjitang

2010 年 All farmer in

Sanmenxia

98 Electronic components

processing, mechanical

processing, etc

Company that needed

new labors



Table 4-4-1-3 Resettlement sample family-industry and sideline activity (339 labors)

Company and types Population Income (yuan) Non-agriculture period（mirth per year）

Remarks

Yuanfen Co. 108 960-1500 6~9 Including 84 females

Construction in Jingjitang region

28 1800-3000 10~12 All males

Electronic components processing in Sanmenxia

18 1000-1600 9~12 Including 21 females

Mechanical processing in Sanmenxia

30 1000-2000 9~12 Including a female

Woodworker and loader in Sanmenxia（aluminum

factory）

35 1500-2000 9~12 All males

temporary worker in southeast coastal area

28 1500-2500 9~12 Including 12 females

Livestock Husbandry 2 families Net income per year15,000-20,000 yuan by breeding

Business 1familiy 35,000 yuan

transportation 5families Average income per year and each family is 10,000~ 20,000 yuan and transportation period is 3-4 moths per year.

Other affected people take part in agriculture, sideline activity (planting grains and fruits trees) in hometown, or in commercial/business, service in other cities, such as Sanmenxia, Luoyang, Zhengzhou and Xi’an etc.

4.4.2 Amusi Company

Based on RAP, the land acquisition (land lost for the affected people) has been shown by the table 4-4-1-2. 10 samples lost 50% or more land, and 4 samples lost all land, including a five guarantee household. The project affected their living. So the implementation has been taken by Sanmenxia and Shanxian governments and Amusi Co. (table 4-4-2-2) to restore economy and living by agriculture, husbandry, business and jobs (table 4-4-2-3) (The increased income has been shown in chapter 6). Table 4-4-2-1Amusi Company- land acquisition

No. Rate of land lost Family Percentage (%)

1 11％～25％ 14 31.8

2 26%～50% 20 45.5

3 51%～75% 6 13.6

4 100% 4 9.1

Total 44 100.0



Table 4-4-1-2 Amusi Company-operation skills

Date Objects Population Contents Remarks

2008.08 Objects trained 94 Technical training

As RAP 2009.06

All affected labor

94 Technical training in juice

factory

2009.09 All affected

labor 20 Other skills

2010.02 Other trained 7 construction technology As the labor contract

between Sanmenxia and Jingjitang

2010 年 All farmer in Sanmenxia

28

Electronic components processing, mechanical

processing, etc

Company that needed new labors

Table 4-4-2-3Amusi Company- industry and sideline activities（94 labors）

Company and types Population Salary

Non-agriculture period

（month/year） Remarks

Yuanfen Co. 26 960-1500 6~9 Including 16

females

Construction in Jingjitang region

7 1800-3000 10~12 All males

Electronic components processing in Sanmenxia

9 1000-1600 9~12 Including 6

females

Mechanical processing in Sanmenxia

6 1000-2000 9~12 All males

Woodworker and loader in Sanmenxia

（aluminum factory） 8 1500-2000 9~12 All males

Temporary worker in southeast coastal area

12 1500-2500 9~12 Including 6

females

Livestock Husbandry 1family Net income per year 20,000yuan (family lost all land)

Business 1family Income is 20,000yuan by commercial daily household necessities. (family lost all land)

Transportation 1 family Net income is 40,000 by transportation

Five guarantee households

1family 2400yuan is charged by government and 360yuan by village

Some affected people take part in agriculture, sideline activity (planting grains and fruits trees) in hometown. Other lost-land family has 3 labor forces, and all three people are working in Amusi company. One of them is working for 6 months, and other 2 people are working all year.

Other affected people take part in commercial/business, service in other cities, such as Sanmenxia, Luoyang, Zhengzhou and Xi’an etc.



4.4.3 Comparison between implementation and plan of resettlement

According to the RAP, all labor forces will work for 6 months in the Yuanfen Co. and Amusi Co. Salary per month is 800yuan. So total income is 4,800 yuan, which is the compensation for land acquisition and income lost of agriculture and sideline activities. The market of labor has changed now. From 2010, the labor force has decreased and is not enough to satisfy demand, so there is a 15% increased salary per year for labor force. Female workers not only work in the company but also are farmers and housewives. Their salary increased to 960yuan in 2010. The skilled worker can get 1,500yuan in salary.

From table 4-4-1-3 and 4-4-2-3, due to lower intensity and lower skill level required, these companis offered less salary than other companies. That is why the workers are females. Some males and single young people want to be skilled and higher salary workers.

The monitoring shows that with changed market of labor, resettlement chose the appropriate place of job and types due to better environment and higher salary as workers. So resettlement took most time to work in factories and only came back home during busy farm season. This ensured that the income from industry and sideline activities is increasing.



5. Project Resettlement Policy

5.1 Laws, regulations and policy on project resettlement

The work of project resettlement should be conducted in accordance with the relevant laws,

regulations and policies concerning the project land acquisition and resettlement of Chinese

government, as well as the local government at different levels.

- The Law of Land Management of the People's Republic of China, (August 28, 2004);

- Decisions on Further Reform and Strict Land Management by the State Council (No.28, 2004);

- Instructions on Improving the Compensation System of Taking over the Land for Use and

Resettling (issued by the Ministry of State Land Management, No.238 2004);

- The Basic Regulations of Protecting Farmland issued by the State Council, October, 1994;

- The Basic Regulations of Protecting Farmland of Henan Province, September, 1999;

- The Notice for Adjustment of Land Compensation Criteria in Municipalities in Henan province;

- The Project Resettlement Action Plan and relevant reports;

- The Non-voluntary Resettlement Policy Handbook issued by ADB;

The related regulations of The Law of Land Management of the People's Republic of China,

(August 28, 2004) states the following:

Article 47 Compensation should be paid for the land according to the original use of the land

while taken.

The total compensation of the land taken includes compensation for land, resettlement, and

buildings, substances, young crops on the land taken. The land compensation should be six to ten

times the average annual production value of the latest three years. Resettlement compensation is

paid according to the number of agricultural residence. The number of to-be-resettled agricultural

residents is taken by the following calculation---the total volume of land taken divides by the

average volume of land per capita. Resettlement compensation per capita is four to six times the

average annual production value of the latest three years. However, the total resettlement

compensation cannot be up to fifteen times the average annual production value of the latest three

years.

The compensation standards of resettlement and other types of land taken are regulated referring

to the standard of farmland by the provinces, the autonomous regions and the municipalities

directly under the central government.

The compensation standard of the buildings, substances and young crops on the land taken is set

by the government of Province, Autonomous region and Municipality directly under the central

government.

For the acquisition of vegetable plots, the agent using the land should pay the developing fund for

the new vegetable plot.

In case that the resettled farmers cannot remain their living condition after getting relevant

compensation according to the second term of this article, compensation can be increased but the

total compensation must be no greater than 30 times of the average annual production value on the

land for the latest three years.

With reference of social and economic development, the State Council is authorized to further

adjust compensation standard for taking farmland on special occasions.

Article 48: While the compensation plan is determined, relevant local governments should post

the data for information disclosure and collect the comments of the rural collective economic



organizations and farmers whose land is to be taken.

Article 49: The rural collective economic organization whose land is taken should publicize the

income and expenses of the compensation fund to its members and accept supervision and

monitoring.

Article 62: The land usufruct of collective farmers cannot be remised, transferred or rented for

non-agricultural construction except for the enterprise’s land usufruct that is shifted due to

bankruptcy or enterprise merger.

Article 63: In the countryside, each family is only allowed to have one house site and the area of

which must be less than the standard set by the Province, Autonomous region and Municipality

directly under the central government.

Villagers establishing their dwelling house should conform to the town’s overall plan to land usage

and try to make use of the original house site and empty land.

The land occupation for villagers’ dwelling house should be examined by town government and

ratified by county government; farmland occupation should be examined and approved in

accordance with the Article 44 of this law.

Guidance Proposals on Perfecting the Compensation System of taking land for use and Resettling

by the Ministry of State Land Resources (Nov.3, 2004) stated as following:

Article 3: The procedure of taking land

(9). Notifying the information of taking over land. Before the legal approval of taking over land,

the local section of state land resources should inform in writing the rural collective economy

organization and farmers of the land’ use, position, the compensation standard, the ways to

settlement and so on. After the notification, all the adhesions built on the land and the young crops

planted on the land will not be compensated for when taking land.

(10). Confirming the investigated results on the land taken over. The local section of state land

resources should investigate the ownership, the type and the area of the said land and the

adhesions’ ownership, types and quantities. The result should be confirmed commonly by the rural

collective economy organizations, farmers and the owners of the buildings, articles.

(11). Organizing a public hearing on the land taken over. Before the legal approval of taking over

land, the local section of state land resources should inform the rural collective economy

organization and the farmers that they have right to apply for a public hearing on the

compensation standard and the ways to resettlement. If the party concerned applies for a public

hearing, they should demand organizing the public hearing according to the procedure stipulated

in the Hearing Stipulations on State Land Resources.

Article 4: The monitoring of land acquisition

(12). Publicity of project data and information disclosure of land acquisition. The Ministry of State

Land Resources and the province department of State Land Resources should open to the society

the approval project of the land taken over through the media except the special situation

concerning the country’s secrets. The county department of State Land Resources should open the

approval project of land taken over in the said village or group.

(13). Compensating for the land and resettlement. After the approval of compensation plan by the

county or the town government, the cost of compensation and resettlement should be appropriated

to the said rural collective economy organization within the legally stipulated time. The local

section of State Land Resources should work with the relevant agricultural section and civil

administration to supervise the cost distribution among the said rural collective economy

organization and the use information.

(14). Supervising and monitoring the land after being taken over. The department of State Land



Resources at different levels should supervise and monitor the implementation of land plan

approved legally. If the said farmers’ living standard is going down, the local section of State Land

Resources should work with the relevant government’ departments to take effective measures to

solve the said farmers’ living problem through various channels and uphold the social security.

5.2 Project resettlement objectives and principles

5.2.1 Resettlement objective s

The resettlement arrangement is based on Chinese laws, stipulations and ADB policies. The

objective of the resettlement arrangement is to restore the resettlement income and living standard,

to reduce the negative economic and environmental impact as much as possible on the

resettlement, and especially to pay attention to the poor and vulnerable groups.

5.2.2 The resettlement principles

The principle of the resettlement arrangement reflects the requirements in relevant law and policy

of Chinese government and ADB.

Firstly, according to Guidance Proposals on Perfecting the Compensation System of taking land

for use, the unified annual output times of the land compensation cost and resettlement subsidies

should conform to the principle which ensures the emigrant’s living standard not to lower.

The resettlement people should get compensation for their loss in the project and to restore

production and living condition after the resettlement.

All the resettlements by the project should get economic compensation and resettlement

assistance.

The economic compensation will ensure everyone to maintain the former living standard after

resettling

If the amount of compensation for the land and the resettlement based on the annual output times

can’t maintain the farmer’s former living standard and can’t cover the social guarantee of the

farmers, the unified annual output times should be raised after receiving the government’ approval;

the cost of compensation and resettlement should be calculated 30 times, and if it still can’t

maintain the farmer’s former living standard, the local government should arrange overall and

grant them allowance from the income of the stated land. When taking over the crop land on

approval, the compensation should be set according to the highest standard promulgated by the

local government.

The resettlement people should obtain full understanding of the qualification, the compensation

criteria and standard, the restoring plan of production income, and the project’s progress and

participate in the implementation of resettlement plan.

The current situation of making use of the land can’t be changed before the resettlements are

satisfied with the compensation and resettlement arrangement.

The implementation agent of the project and the monitoring and assessing department of the

project will supervise the resettlement and the distribution of the compensation cost.

The vulnerable group can enjoy the government’s aiding policy so as to guarantee their living

standard and social welfare.

The resettlements should have the opportunity to get benefit from the project.

The resettlement arrangement should be in conformity to the local government Master Plan.

Secondly, the time and quantity of the land adjustment is to be determined according to the

opinions of more than two-thirds villagers and the specific situation.



Thirdly, the distribution and use of the land compensation fund and resettlement subsidies should

be determined according to the specific situations of the village and the villagers’ opinions. The

goal of the resettlement arrangement is to ensure that all the resettlement people to at least

maintain the present living standard after moving, and to get adequate economic subsides and

restore income as well as to receive necessary training and assistance from local government and/

or institutions in the process of the resettlement and economic restoration.

5.3 The compensation criteria

All the project affected people have received compensation for their loss according to relevant

laws, regulations and policies, as well as the project resettlement action plan.

5.4 The qualifications and rights for compensation

According to the relevant laws and regulations, as well as the project resettlement action plan, all

of the project affected people have the right to receive adequate compensation for their loss of land

and or property on the land due to the project land acquisition.

5.5 The implementation of resettlement policy

Under the supervision of local government and monitoring agency, in accordance with the related

law and regulations and government guidelines regarding the project resettlement, the local

government and project implementation agencies took great effort to carry out the task and made

great progress with the satisfaction of public and farmers with timely and fully disbursement of the

compensation for land acquisition and resettlement.



6. Monitoring and assessment on social and economic development in

the resettlement community

6.1 The structure of the resettlement sample families

In order to conduct the project monitoring and supervision, 32 families were selected in 2009 as

the project resettlement sample families with 122 persons. The average size of family is

3.81persons per family which is the same figure as the data collected in 2007 (3.73 persons/family

for Huangcun and 4 persons for Xiacun). It is at the same level around the province and the

country. See Table 6-1-1 for detail.

Table 6-1-1 Structure of resettlement sample families in 2010 unit：person

Village Total

number of

families

Total

population

Average

size of

family

Ratio of

sampling

male female Youngsters

& children

Labor

force

aged

Huang

cun 22 82 3.73 17.7% 40 42 14 58 10

Xiacun 10 40 4.00 24.1% 20 20 5 30 5

Total 32 122 3.81 19.4% 60 62 19 88 15

Table 6-1-2 Statistics of resettlement sample families in 2010 unit: person

village male female children Labor force aged

Huangcun 48.8% 51.2% 17.07% 70.73% 12.20%

Xiacun 50.0% 50.0% 12.50% 75.00% 12.50%

Total 49.2% 50.8% 15.57% 72.13% 12.30%

Of the people from the project sample families of Huangcun(22 families with 82 persons), there

are 40 male adults and 42 female with the average male/female ration of 1:1.05. There are 14

youngsters or children under 16, takes 17.07%. There are 58 labors and it takes 70.73%. There are

10 aged people (60 and above) (12.2%). That means there is one aged person in 2 families in

average which is the same level in the countryside of the province. It is higher than the figure of

aged society. It shows big difference from the figure in the project resettlement action plan which

is 2.3%. The reason is that there is no mentioning of names of the sample families and there are

some different families chosen. The maximum family size is 5 and the minimum is 2 with 3-4 as

normal size.

Of the people from the project sample families of Xiacun(10families with 40 persons), there are

20 male adults and 20 female with the average male/female ration of 1:1. There are 5 youngsters

or children under 16, takes 12.5%, the decrease as it was 15% in 2007. There are 30 labors and it

takes 75%. There are 4 aged people (60 years and above) (12.5%). That means there is one aged

person in 2 families in average which is more or less the same level in the countryside of the

province. It is higher than the figure of aged society. It shows big difference from the figure in the

project resettlement action plan which is 5.9%. The reason is that there is no mentioning of names

of the sample families and there are some different families chosen. The maximum family size is 5

and the minimum is 2 with 3-4 as normal size.

The monitoring shows that the number of labor force takes 70%~75% of the total population in the



above mentioned villages, the number of children takes 12%~17% of the total population. The figures

are at the same level as the provincial average in countryside. The middle aged and aged people take

about 12.3%，it show the sign of aged society in the countryside. There is no “five guarantee

households” (i.e. the aged, the infirm, old widows and widowers and orphans, taken care of by the

people’s commune in five ways –food, clothing, medical care, housing and burial expenses) among the

sample families.

6.2 The economic status and income of the resettlement sample families

6.2.1 Resettlement sample families-participation and income in industry and sideline

activities

As the chapter 4.4, all labor forces took part in the industry and sideline activities and only came back

home for farm during busy farm season. Some of the families joined the construction work of the

Yuanfen Company by transportation of building material. They and other females worked in the

company when it has completed in 2010. That is result in more resettlement by industry activity than

them in 2009. Salary is higher in 2010 than in 2009, but the income by business and transportation is

reverse.

The market of labor was affected by world financial crisis in 2009, but economy has restored in 2010.

Resettlement can seek the work easily as the governments of Sanmenxia, Shanxian and Lingbao pay

attention to them as the mentioned earlier. So income of resettlement by industry and sideline activities

increased obviously. Salary of resettlement in Huang increased from 4,250.4yuan in 2009 to

5,792.23yuan. Their salary in Xiacun is from 2,053.6yuan in 2009 to 3,953.29yuan. Compared to the

plan in 2007, income per capita by industry and sideline activities increased from 4,143yuan in 2007 to

1,649.23yuan in 2010, and increasing rate per year is 11.8%. Due to improvement of transportation, the

income per capita by industry and sideline activities increased from 1,603yuan in 2007 to 3,953.29yuan

in 2010. Income per capita by industry and sideline activities increased from 4,143yuan in 2007 to

1,649.23yuan in 2010, and increasing rate per year is 35%. The detail has been shown in table 6-2-1-1a

and 6-2-1-1b.

Table 6-2-1-1a Resettlement sample families- industry and sideline income unit: yuan

Village Populati

on

Industry

/commerci

al

Tempora

ry work

Transportati

on

Subsidy

(salary/wag

e)

Other

s

Per

capita-20

10

Huangcu

n 82

304.88 4640.99 339.76 135.4 371.2 5792.23

Xiacun 40 226.2 3209.39 203.5 105.4 208.8 3953.29

Table 6-2-1-1b Resettlement sample families- comparison of net income unit: yuan

Village Per capita income in

2010

Per capita income in

2009

Per capita income in

2007

Increasing income comparing the plan

Increase rate

Huangcun 5792.23 4250.4 4143 1649.23 11.8%

Xiacun 3953.29 2053.6 1603 2350.29 35.0%

In the year of 2010, resettlement sample families from Huangcun village are with per capita

income of 304.88yuan from business, per capita income of 4640.99yuan from temporary works,

per capita income of 339.76yuan from transportation, subsidy and salary/wage of 135.4yuan, other



incomes of 371.2yuan. The total industry and sideline income in 2009 is 5792.23yuan.

In the year of 2010, resettlement sample families from Xiacun village are with per capita income

of 226.2yuan from business, per capita income of 3209.39yuan from temporary works, per capita

income of 203.5yuan from transportation, subsidy and salary/wage of 105.4yuan, other incomes of

208.8yuan. The total industry and sideline income in 2010 is 3953.29yuan.

6.2.2 Resettlement sample families-participation and income in agriculture and sideline

activities

6.2.2.1 Agriculture activities on the contracted farmland

The project monitoring shows that the resettlement families from Huangcun were with farmland of

per capita 0.936mu, and all of the land belongs to irrigated land. With the land acquisition of

project (200.1mu) the land loss for per capita is 0.432mu, and owning per capita farmland

0.504mu. For resettlement sample families from Xiacun, their per capita land reduced from

1.136mu to 0.768mu with loss 0.367mu. The amount of project land acquisition for Xiacun village

is 60.959mu which is mostly dry land. See Table 6-2-2-1a.b.c for detail.

The farmland in Huangcun are generally flat irrigated land which is good for farming and various

crops as wheat, corn, sweet potato, peanut, and etc. The village is located at the suburb of

Sanmenxia city which is good business for growing vegetables and greenhouse vegetables. They

have turned more crop field into vegetables for high economic return.

Table 6-2-2-1a Statistics on farm land for the resettlement people

village populationBefore project land acquisition (mu)

total irrigated

land dry land

vegetable field

vegetable greenhouse

garden plot

per capita farmland

Huang cun

463 433.32 256.17 51.29 86.06 39.8 0.936

Xiacun 166 188.528 43.392 80.671 64.465 1.136

Table 6-2-2-1b Statistics on farm land for the resettlement people

name of

village

pop

ulati

on

project land acquisition (mu)

total irrigat

ed

land

dry

land

vegetabl

e field

vegetable

greenhous

e

garden

plot

per capita

loss

farmland

Huangcun 463 200.1 94.32 23.94 50.56 31.28 0.432

Xiacun 166 60.959 20.767 40.192 0.367

Table 6-2-2-1c Statistics on farm land for the resettlement people

village popu

latio

n

After project land acquisition (mu)

farmla

nd

irrigat

ed

land

dry

land

vegetable

field

vegetable

greenhous

e

garden

plot

per capita

Huangcun 463 233.22 161.85 27.35 35.5 8.52 0.504

Xiacun 166 127.569 22.625 80.671 0 0 24.273 0.768

Xiacun is located at the hilly area with mostly dry land. The land taken by the project is mainly



garden plot and irrigated land. There is certain impact on their agriculture activities by the project

land acquisition. Generally, they grow wheat, corn, beans and sweet potato. The weather was good

for the crops in 2010 and they had good production.

6.2.2.2 Agriculture income

As shown in Table 6-2-2-2, the average agriculture production in Huangcun village in 2010 is

659kg per mu with per capita production of 263.6kg. The production is good for the farmers to

have enough food reserve for the year. The per capita agriculture income is 516.66yuan in average.

Table 6-2-2-2 also shows that the average agriculture production in Xiacun village in 2010 is

490kg per mu with per capita production of 343kg. The production is good for the farmers to have

enough food reserve for the year. The per capita agriculture income is 672.28yuan in average. The

average agriculture production of two villages in 2010 is same as in 2009, but per capita

production has creased due to increasing price of agriculture production.

Table 6-2-2-2 Resettlement sample families agriculture income in 2010

Village Sampled population Production

(kg)

Per capita

(kg)

Price

(yuan/kg)

Per capita income

(yuan)

Huangcun 82 659 263.6 1.96 516.66

Xiacun 40 490 343 1.96 672.28

6.2.2.3 Agriculture and sideline income

Beside the main crops for food (wheat and corn and etc), the resettlement sample families also

grow fruits, vegetables and other cash crops which greatly increased their family income in 2009.

Some of the families participated in the household livestock husbandry with mainly pigs, sheep,

chicken and beef cows. Xiacun village is with less irrigated land for farming and most of the land

is dry land that relies on the weather very much with unstable yield. Most of the women would do

the household livestock husbandry which is the main source of family income. The average per

capita income from agriculture and sideline in 2010 is 1,608yuan in Huangcun village and

1,176yuan in Xiacun village. The industry and sideline income increased 16.3% in Huangcun and

18% in Xiacun due to the increasing price of fruit, vegetable, meat and eggs, although production

is the same as in 2009 comparing in 2010.

Table 6-2-2-3 Statistics on income from agriculture and sideline unit: yuan

village population fruits vegetables livestock

husbandry

total per capita in

2010

per capita

in 2009

Percentage

of increase

Huangcun 82 12780 117906 1166 131852 1608 1382.6 16.3%

Xiacun 40 28642 0 18384 47027 1176 996.3 18.0%

6.2.3 Total family income and per capita net income

a. Resettlement sample families per capita total income

The resettlement sample families per capita annual income includes three parts as the per capita

agriculture and sideline income, per capita income from crops production, and per capita industry

and sideline income. Huangcun resettlement sample families per capita annual income is

7,917yuan, while the figure is 5,801yuan for Xiacun village. See Table 6-2-3-1 for detail.



Table 6-2-3-1 Resettlement sample families income unit: yuan

village populati

on

per capita

agriculture and

sideline income

per capita crops

production

income

per capita

industry and

sideline income

per capita

total

income

Huangcun 82 1608 516.66 5792.23 7917

Xiacun 40 1176 672.28 3953.29 5801

Comparing in 2007, per capita total income increased 2,461yuan in 2010, and its rate is 45.1%.

Per capita total income increased 2,759yuan in 2010, and its rate is 90.7%. The reason is improved

transportation and higher salary of temporary work (salary increased 20% in 2010 comparing in

2009).

Table 6-2-3-2 resettlement sample families total income unit: yuan

Village per capita total income in 2010

per capita total income in 2009

per capita total income in 2007

Increased income in 2010 comparing

in 2007

Increase rate

Huangcun 7916.8 6081.1 5456 2461 45.1%

Xiacun 5801.2 3633 3042 2759 90.7%

b. Resettlement sample families per capita net income

The net income per capita of Huangcun resettlement sample families in 2010 is 6989.7yuan, while

the figure for Xiacun is 5,090yuan due to improving transportation and higher salary. See Table

6-2-3-2 for detail.

Table 6-2-3-3 Comparison of resettlement sample families per capita net income unit:

yuan

village population Net

income

per

capita in

2010

Net

income

per

capita in

2007

Increase Increase

rate

Except

increase

of price

Increase

rate of

each year

Huangcun 82 6989.7 5074 1915.7 37.8% 25.8% 8%

Xiacun 40 5090.4 2771 2319.4 83.7% 71.7% 19.60%

6.3 Resettlement sample families-Expenses on production and living cost

6.3.1 Cost of production

a. Expenses on agriculture activities

In 2010, the per capita expense on agriculture and sideline of resettlement sample families from

Huangcun village is 927.14yuan with 61.79yuan for seeds, 238.21yuan for fertilizer, 189.64yuan

for pesticide, 131.07yuan for mulch film, 85yuan for machinery rent, and 221.43yuan for

electricity. The farmers in Huangcun village grow a great deal of cash crops and vegetables. They

spent much more on fertilizer, pesticide, mulch film and electricity.

In 2010, the per capita expense on agriculture and sideline of resettlement sample families from

Xiacun village is 710.86yuan with 71.43yuan for seeds, 230yuan for fertilizer, 134.29yuan for

pesticide, 41.43yuan for machinery rent, 35.71yuan for electricity, and 198yuan for fodder and



animal medicine. See Table 6-3-1a for detail.

Table 6-3-1a Resettlement sample families per capita agriculture and sideline expenses

unit: yuan

village seeds fertilizer pesticidemulch

file

machine

rental electricity

fodder/animal

drugs

total

expense

Huangcun 61.79 238.21 189.64 131.07 85 221.43 0 927.14

Xiacun 71.43 230 134.29 0 41.43 35.71 198 710.86

b. Input and output on agriculture and sideline

In 2010, the agriculture and sideline income of the Huangcun village resettlement sample families

is 2124.61yuan per capita, the corresponding expenses is 927.14yuan per capita, the net income on

agriculture and sideline is 1197.47 yuan per capita. The input/output ratio is 1:2.3.

In 2010, the agriculture and sideline income of the Xiacun village resettlement sample families is

1847.94yuan per capita, the corresponding expenses is 710.86yuan per capita, the net income on

agriculture and sideline is 1,137.08yuan per capita. The input/output ratio is 1:2.6. See Table

6-3-1b for detail.

It is noticed that there are differences between the two villages for project resettlement in some

ways regarding the geological location, tradition, and land condition. The farmers grow more

vegetable and cash crops in Huangcun since it is with flat land and close to Sanmenxia city, while

Xiacun is far from the cities with hilly land and the farmers pay more attention to livestock

husbandry.

Table 6-3-1b Resettlement sample family per capita net income on agriculture/sideline

unit:yuan

Village Population Per capita

agriculture

/sideline

income

Per capita

income

from grain

Per capita

agriculture

and sideline

expenses

Per capita

agriculture

/sideline net

income

Input/

Output

ratio

Huangcun 82 1608 516.66 927.14 1197.47 1:2.3

Xiacun 40 1176 672.28 710.86 1137.08 1:2.6

6.3.2 Cost of living

a. Resettlement sample families per capita daily life expenses

In 2010, Huangcun village resettlement sample families per capita living cost is 2,281.25yuan

including 508.60yuan for clothing, 423.86yuan for daily household necessities, 245.92yuan for

fuel, 209.75yuan for electricity, 107.5yuan for medical care, 167.53yuan for furniture and

appliances, 301.4yuan for schooling and tuition, 316.7 yuan for telephone bills.

In 2009, Xiacun village resettlement sample families per capita living cost is 1754.59yuan

including 464.59yuan for clothing, 279.86yuan for daily household necessities, 201yuan for fuel,

159yuan for electricity, 102.2yuan for medical care, 112.33yuan for furniture and appliances,

188.2yuan for schooling and tuition, 247.4 yuan for telephone bills.



It is shown in the tables that the resettlement sample families spend more money on clothing and

tuition for kids due to the local social and economic development and improvement of living

condition, as well as the more and more attention to the education of new generation. There are

more and more families sending their children to college for higher education. The cost of

schooling and tuition ranks the first for living cost taking about 10~15%. See Table 6-3-2b for

detail.

Table 6-3-2a Resettlement sample families per capita living cost in 2009 unit:yuan

Village PopulationClothing

Daily

household

necessities

Fuel Electricit

y

Medica

careFurnitureTuitioTelephon Total

Huangcun 82 508.60 423.86 245.92 209.75 107.50 167.53 301.40316.70 2281.25

Xiacun 40 464.59 279.86 201.00 159.00 102.20 112.33 188.20247.40 1754.59

Table 6-3-2b Resettlement sample families-breakdown of expenses

village population clothing

daily

household

necessities

Fuel ElectricityMedica

re

Furnitu

re

Tuition

fee

Telephone

bill

Huang

cun 82 22.3% 18.6% 10.8% 9.2% 4.7% 7.3% 13.2% 13.9%

Xiacun 40 26.5% 16.0% 11.5% 9.1% 5.8% 6.4% 10.7% 14.1%

0.00

100.00

200.00

300.00

400.00

500.00

600.00

衣物费日杂费燃料费电费医疗费家具费学费电话费

黄村下村

Clothing Daily Fuel Electricity Medicare Furniture Tuition Telephone household fee bill

Huangcu Xiacun



Notes: (1) In the two figures above, from left to right: clothing, daily necessities, fuel, electricity,

medical care, furniture, tuition, phone bill;

(2) The color BLUE for Huangcun and color BROWN for Xiacun;

6.4 The living standards of the resettlement sample families

a. Structure of consumption

In 2010, the Huangcun resettlement sample families per capita consumption on food is

1394.96yuan, including main food/cereal 327.41yuan, eggs/meat/ vegetables 701.43yuan, cooking

oil and seasoning 138.12yuan, water 15yuan. They spent little on water since they use self-supply

wells with only cost of power and maintenance. Their per capita consumption on meat and fish is

213yuan.

In 2010, the Xiacun resettlement sample families per capita consumption on food is 1161.82yuan,

including main food/cereal 335.52yuan, eggs/meat/vegetables 510yuan, cooking oil and seasoning

143yuan, water 10.8yuan. They spent little on water since they use selfsupply wells with only cost

of power and maintenance. Their per capita consumption on meat is 162.5yuan.

Table 6-4-1 Resettlement sample family-per capita expense on food unit:yuan

village cereal/main

food

eggs/poultry/vegetable

s

oil/seasoning

s

wate

r

meat and

fish

Total

expense

Huangcu

n 327.41 701.43 138.12 15 213 1394.96

Xiacun 335.52 510 143 10.8 162.5 1161.82

Table 6-4-1 shows that the resettlement sample families consume more main food/cereal than the

other kinds of food and their consumption on non-staple foods as eggs and meat is increasing in

the past few years. The people in Huangcun consume more non-staple foods than Xiacun since

they are closer to the city. In general, their living condition is much better than that in 2007.

b. The Engle coefficient

In 2010, the Huangcun village resettlement sample families per capita consumption expense is

3,676.21yuan, with 1,394.96yuan for food, 2,281.25yuan for daily necessities, the Engle

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

衣物费日杂费燃料费电费医疗费家具费学费电话费

黄村下村



coefficient is 0.379. The families are at well-off living condition in general.

In 2010, the Xiacun village resettlement sample families per capita consumption expense is

2,916.41yuan, with 1,161.82yuan for food, 1,754.59yuan for daily necessities, the Engle

coefficient is 0.398. The families are at well-off living condition in general.

See Table 6-4-2 for detail.

Table 6-4-2 Resettlement sample families-consumption and Engle Coefficient

village population daily expense food total E

Huangcun 82 2281.25 1394.96 3676.21 0.379

Xiacun 40 1754.59 1161.82 2916.41 0.398

Table 6-4-3a shows the Huangcun resettlement sample families Engle Coefficient with breakdown

in different levels. Resettlement families living level improved. There are 2 families (9 persons)

are rich families which take 10.98%. There are 9 families (34persons) are well-off families which

take 41.46%. There are 10 families (36persons) are well-to-do families which take 43.9%. There

are 1 families (3 persons) are families at the level of being adequately fed and clad which take

3.66%. So the living level improved obviously by Engle Coefficient with form 0.41 in 2009 to

0.379 in 2010.

Table 6-4-3b shows the Xiacun resettlement sample families Engle Coefficient with breakdown in

different levels. There are 1 families (5 persons) are rich families which take 12.50%. There are 4

families (15persons) are well-off families which take 37.5%. There are 4 families (18 persons) are

well-to-do families which take 45%. There are 1 families (2 persons) are families at the level of

being adequately fed and clad which take 5%.

Table 6-4-3a Huangcun resettlement sample family-Engle Coefficient in 2010

Table 6-4-3b Xiacun resettlement sample family-Engle Coefficient in 2010

The monitoring shows that the resettlement sample families consumption structure and the living

level are improving gradually. It is necessary to notice that the farmers in China have been

accustomed to different consumption tradition with foreign countries due to the influence of long

history. The farmers, in general, are used to encourage frugality and save money for the children

or for reinvestment.

E family person percent living condition

E<0.3 2 9 10.98% rich

0.3<E<0.4 9 34 41.46% better-off

0.4<E<0.5 10 36 43.90% well-to-do

0.5<E<0.55 1 3 3.66% being adequately fed and clad

E family person percent Living condition

E<0.3 1 5 12.50% rich

0.3<E<0.4 4 15 37.50% better-off

0.4<E<0.5 4 18 45.00% well-to-do

0.5<E<0.55 1 2 5.00% being adequately fed and clad



6.5 The resettlement sample families-living conditions and housing conditions

With the social and economic development, the family income of farmers is increasing

significantly year by year. The farmers are enjoying better living standard. They started to pay

more attention on family entertainment and communications.

Food structure: their food structure has been greatly improved and they took more eggs, poultry

and meat than before;

Housing: they are living in the decorated brick-and-concrete houses with new furniture and home

appliance;

Transportation and communication: many resettlement families have modern transportation and

communication means as motorcycles, tractors, and automobiles. The home appliances are popular

in the families as well as telephones and mobile phones.

6.6 The resettlement sample families-the social adaptability

The project resettlement work has been completed before the end of 2010. The expert team visited

Huangcun and Xiacun for social adaptability assessment. Certain group discussions, interviews

were called to collect information among the resettlement people. The discussions were hold for

group of old, middle-aged, youth and teenagers with equal number of male and female participants.

It shows that there is no moving of families in the project and they only lost part of the farmland.

They have willingly accepted the arrangement and there is little negative impact on their family

economic status and living standards.

6.7 The resettlement community-environment, healthcare/sanitary, education

and training

6.7.1 The community environment, health care and sanitary, education, etc

The resettlement families expressed their satisfaction with the current community living

conditions. There are clinics in every village for convenience of medical treatment. They could go

to big hospitals in nearby towns/cities for serious disease /illness with easy transportation and

communication. They can also make appointment with the hospitals by telephone.

There are primary schools in every village built up with national standard. The schools are

facilitated with good hardware and staff. The salary of teachers is charged by government

financial expenditure. The facilities and teaching conditions of town middle school have reached

the standards set up by the national regulations. 100% of the children from the resettlement

families receive compulsory education. The primary school students could go to school within

50m~1,000meters and middle school students would normally go to the nearby town.

6.7.2 Technical training offered to the resettlement people

The local government of Shanxian county, Shanxian town and Lingbao city conducted trainings to

the project resettlement people regarding the policy of employment, protection of labor rights as

the mentioned above, including technical trainings for fruit juice processing, sewing, cooking,

hotels and restaurants service, machine processing, etc. The local government functional



departments offered great help to the people. The experts from Lingbao city livestock husbandry

administrative bureau visited the farmers families and offered guidance and help on technical and

animal epidemic prevention.

6.8 Safeguard of women’s right in the resettlement families

Women enjoy the equal rights as men in family and in society. They have the right to participate

in the discussions for family issues and make decisions. They pay attention to the social and

economic development and have the right to vote and to be voted as the member of the villager’s

committee. At present, most of the members of the villager’s committee are male except one lady

who comes from one of the resettlement family.

According to the data collected, the female members of the resettlement families receive lower

education than male and the higher level of education the less female. The figure shows that the

female takes 55% in primary graduation, 30% in secondary education, 20% in senior high school.

Thanks to the compulsory education, there is equal number of girls as boys for teenagers under 20.

Women from the resettlement families took part in agriculture and industry and sideline activities

as men and their rights are safeguarded. In general, women would participate in agriculture,

transportation, textile and cloth processing, business and services. The income of women is

generally a bit lower than men.

6.9 The vulnerable groups in the resettlement families

The aged：there are 15 aged people in the project resettlement sample families (takes 12.3 %) and

they normally would do some small works for the family as their capacity allows. All of them

are being taken care of by their family and the children are good to them and they show

satisfactory to their family and children. There are some aged people in the resettlement villages

that they are aged orphans and widows/widowers. The villager’s committee and town government

civil service departments take good care of them according to the government policy.

a. People with 60 years old or older get 62yuan per capita per month in 2010.

b. The children：all (100%) of the children at school age go to school for 9 years compulsory

education and the schools are with improved facility and teaching conditions.

c. The weak and disabled: the villager’s committee and town government civil service

department would offer the relief fund (300-500yuan) to the vulnerable groups including the

disabled(physically or mentally), injured by accidents, long term sickness, etc. There is no such

person in the project resettlement families. Sanmenxia implemented rural dwellers' lowest living

guarantee policy in 2009, and there are 3 types. The first type is families that are given long-term

care. These families are not suitable for the labor force due to injuries, death, serious diseases and

heavy deformity. The standard is that 95yuan per capita per month in family of 1-2 persons;

70yuan per capita per month in family of 3 persons and 55yuan per capita per month in family of 4

persons and more. The second type is middle-term cared families. These are the families whose

main labor force is injured or deformed, has chronic disease, is 70 years old or older, whose other

family members have lower ability to work, whose living standard is unlikely to improve within a

short period of time or has a single parent raising young children. The standard is that 55yuan per

capita per month in family of 1-2 persons; 50yuan per capita per month in family of 3 persons and

45yuan per capita per month in family of 4 persons or more. The third type is short-term cared



families whose have labor forces but many people should be supported or raised, and which have

overburdened. The standard is that 45yuan per capita per month in family of 1-2 persons; 40yuan

per capita per month in family of 3 persons and 30yuan per capita per month in family of 4

persons or more. The standard is more 50yuan per capita per month, and will re-adjusts as living

level improved.

6.10 The comparative analysis of economic status of families before and after

resettlement

With the comparison of economic status of the resettlement families in 2007 and 2010, it will

show changes of the family economic status and income with the project implementation.

6.10.1 Huangcun resettlement families

It is shown in Table 6-10-1a that the resettlement families in Huangcun village lost 46.18% of their

farmland (the loss of irrigated land for land for growing field crops is 36.82%). There is certain

decrease of their agriculture and sideline activities and income.

Table 6-10-1a Huangcun resettlement families farmland loss unit: mu

item total irrigated

land vegetable

field vegetable

greenhouse garden plot

before land acquisition 433.32 256.17 51.29 86.06 39.8

land acquisition 200.1 94.32 23.94 50.56 31.28

current land use 233.22 161.85 27.35 35.50 8.52

land loss rate 46.18% 36.82% 46.68% 58.75% 78.59%

Table 6-10-1b shows that there is decrease of crops production in 2010 compared with that of

2007 (60.7% drop down) due to the decrease of farmland. At the same time, some of the families

turned their crop field into vegetable plot for better economic return. Compare to the 63.18% loss

of their vegetable field, vegetables greenhouse and garden plot, there is increase of their

agriculture and sideline income (10.7 %). They spent more money on fertilizer and pesticide on

vegetable field (544.1yuan per capita).

The major influence of the loss of farmland lays on the production of vegetables greenhouse and

fruit garden plot. The per capita agriculture and sideline income in 2010 is lower than 2007 by

1185.5yuan (49.7% drop down), and is higher than 2009 by 133.98yuan.

Most of the resettlement families turned their attention to industry and sideline activities after the

loss of farmland and their industry and sideline income in 2010 is 5792.2yuan (3102.2yuan higher

than 2007 with 115.3% increase). The per capita net income increased from 5074yuan (2007) to

6989.7yuan (2010) with 1915.7yuan increase ( 37.8%).

The economic status of the resettlement families are greatly improved in the past few years with

the local social and economic development. The Engle Coefficient is decrease from 0.46 in 2007

to 0.379 in 2010. They belong to the well-to-do family with better-off living conditions.



Table 6-10-1b Huangcun resettlement families economic status comparison unit:yuan

item 2010 2007 difference increase rate

per capita agriculture income

(grain) 516.7 1313.0 -796.3 -60.7%

Per capita agriculture/sideline

income 1607.9 1453.0 154.9 10.7%

per capita agriculture expense 927.1 383.0 544.1 142.1%

per capita agriculture/sideline net

income 1197.5 2383.0 -1185.5 -49.7%

per capita industry and sideline

income 5792.2 2690.0 3102.2 115.3%

per capita expense on food 1395.0 1366.0 29.0 2.1%

daily necessities 2281.3 1631.0 650.3 39.9%

daily household expenses (total) 3676.2 2997.0 679.2 22.7%

per capita net income 6989.7 5074.0 1915.7 37.8%

Engle Coefficient 0.379 0.460

Balance 3313.5 2077.0 1236.5 59.5%

6.10.2 Xiacun resettlement families

It is shown in Table 6-10-2a that the resettlement families in Xiacun village lost 为 32.334% of their

farmland (the loss of irrigated land for land for growing field crops is 47.859% and garden plot loss

62.347%). There is certain decrease of their agriculture and sideline activities and income.

Table 6-10-2a Xiacun resettlement families farmland loss unit:mu

ITEM TOTAL IRRIGATED LAND DRY LAND GARDEN PLOT

before land acquisition 188.528 43.392 80.671 64.465

land acquisition 60.959 20.767 40.192

current land use 127.569 22.625 80.671 24.273

land loss rate 32.334% 47.859% 0.000% 62.347%

Table 6-10-2b shows that there is decrease of crops production in 2010 compared with that of

2007 (53.28% drop down) due to the decrease of farmland. Another reason is that the land taken is

all irrigated land which leads to the decrease of unit production. At the same time, many of the

families housewives started to do livestock husbandry (pigs, sheep, cows, and chicken) for better

economic return. They spent more money on livestock fodder and medicine as well as fertilizer and

pesticide on vegetable field (438.86yuan increase).

The major influence of the loss of farmland lays on the production of vegetables greenhouse and

fruit garden plot. The per capita agriculture and sideline income in 2010 is lower than that of 2007

by 500.92yuan (30.58% drop down).

Most of the resettlement families turned their attention to industry and sideline activities after the

loss of farmland and their industry and sideline income in 2010 is 3953.29yuan (2820.29yuan



higher than 2007 with 248.92% increase). The per capita net income increased from 2771yuan

(2007) to 5090.4yuan (2010) with 2319.4yuan increase (83.7% ).

The economic status of the resettlement families is improved in some extend in the past few years

with the local social and economic development. The Engle Coefficient is 0.398. They belong to

the better-off family with living conditions.

Table 6-10-2b Xiacun resettlement families economic status comparison unit:yuan

item 2010 2007 difference increase rate

per capita agriculture income (grain) 672.28 1439 -766.72 -53.28%

Per capita agriculture/sideline income 1176 471 704.66 149.61%

per capita agriculture expense 710.86 272 438.86 161.35%

per capita agriculture/sideline net income 1137.08 1638 -500.92 -30.58%

per capita industry and sideline income 3953.29 1133 2820.29 248.92%

per capita expense on food 1161.82 384 777.82 202.56%

daily necessities 1754.59 488 1266.59 259.55%

daily household expenses (total) 2916.41 872 2044.41 234.45%

per capita net income 5090.4 2771 2319.40 83.70%

Engle Coefficient 0.398 0.44

Balance 2173.99 1899 274.99 14.48%

The monitoring shows that the Huangcun and Xiacun resettlement sample families have improved

their income and living conditions even though they lost part of their farmland in the project land

acquisition with the help and assistance of local government and related agencies. Industry and

sideline income of Huangcun resettlement sample families is 3102.2yuan higher than 2007 with

115.3% increase. The per capita net income increased by 1915.7yuan with 37.8% increase.

Industry and sideline income of Xiacun resettlement sample families is 2,820.29yuan higher than

2007 with 248.92% increase. The per capita net income increased by 2319.4yuan with 83.7%

increase. Compared with 2007, the economic status of the resettlement sample families is greatly

improved in 2010, standard of living stay the same before land acquisition, but with certain

improvement. The objective of the project RAP has been achieved.



7.Public participation and mechanism for grievance and complaint

7.1 Public participation

7.1.1 Information disclosure

All the information and policy regarding the resettlement should be publicized to the public for

supervision and obtain the understanding of farmers about the rules and their rights and duties in

accordance to the Land Law. The means of information disclosure includes the radio, television,

newspaper, posters, and official notice/gazette. The local government has made great effort to

communicate with the farmers and the farmers were informed with the following:

-the land acquisition and resettlement policy and regulations;

-the qualifications and standards for land and resettlement compensation；

-the number and quantity of substance for resettlement;

- the amount of compensation；

- the resettlement people’s legal rights and complaint system and procedure；

- the government plan on restoring the local production and economic development；

With the work of project information disclosure, the resettlement people were well informed and

obtain better understanding of the project objective, the benefit to the local social and economic

development, the progress of the project implementation and resettlement policy, compensation

qualification and calculation. The work was conducted with transparency and with broad public

participation to ensure smooth processing and legal rights and interests of the people.

7.1.2 The procedure of public participation

The project public participation was processed with the following measurement:

- The government officials from Sanmenxia city and Shanxian county visited the village and

talked with representatives of the farmers to get better understanding of the situation. Meetings

and discussions were hold to give directions and guidance for the project resettlement work;

- the NCWU experts team paid several visits to the site and hold meetings and interviews to assist

the local resettlement officials and offer assistances and guidance;

- Meetings and seminars hold with domestic experts to seek solutions and consultation;

- Meetings and discussions were hold with the participation of local government officials,

villager’s committee, farmer’s representatives, and resettlement families to collect comments and

recommendation on the process of work and data correction to make sure that the people who lost

their land and property on the land would get proper compensation according to the laws and

regulations for project land acquisition;

-with the assistance of the villager’s committee and local the government departments, the

brochures on project resettlement information were distributed to each resettlement family and the

families were well informed of anything related to the data for their compensation. They show

satisfaction to the work and their legal rights and interests were safeguarded.



7.2 Grievance and complaint

7.2.1 Mechanism for grievance and complaint

With the Constitution and Civil Law of The people’s government of China, as well as the

Petition Provisions, the legal rights and interests are safeguarded. The farmers can go to the

LPMOs and government offices to submit their petition and seek for legal assistances. They can

also seek help from the various government departments of people’s procuratorate, local people's

court, governor’s office, etc. There are civil mediation committee and groups in villages and

farmer’s groups which can help the farmers. The farmers could even seek for administrative or

legal procedure if they think it is necessary.

7.2.2 Channel for grievance and complaint

The resettlement people could send their grievance and complaint to:

- the Petition Office at every government level;

- the Lingbao city and Shanxian county LPMO;

- the local land resource bureau;

- the People’s congress, political consultation association of Sanmenxia city and Shanxian county;

- the administrative supervision, audit, disciplinary, and judicial departments at various level;

- the internal/external monitoring agencies;

7.2.3 Procedures for grievance and complaint

According to the regulations on the resettlement and related laws, the farmers can apply to the

villagers committee and then go up stage by stage through town government, county bureau,

municipalities and provincial administrations. If they are not satisfied with the feedback , they can

go to upper level government to ask for arbitration and even seek for legal solution.

7.2.4 Processing for grievance and complaint

In order to safeguard the legal rights and interests of the people and the progress of the project

implementation, the grievance and complaint of the people would be processed as following:

Step 1: the people can talk to the villager’s committee first. if not settled, they can send written

paper to the town government. If they don’t receive satisfying reply within 3 weeks, they go to

county/industry park/city government to file written petition;

Step 2: the reply should be made within 4 weeks and if they are not satisfied with the outcome,

they can go to the upper level government or seek legal solutions;

Step 3: they can even go to the Intermediate People’s Court of Sanmenxia city and the court will

make the final judgment;

Step 4: they can send the paper to the Higher Court of the province for review;

During the land acquisition, representatives for resettlement consulted officers to policies, and

detailed answers and explanations were given about questions and concerns of resettlement. But

they did not record on spot. There was not text of the complaint and petition events.

The monitoring shows that the resettlement people can express their opinions by various channels.

The resettlement is satisfied with the results of the settlement of their complaints. They prefer

spoken appeals to writing appeals due to the limits of their education or habits. The administrative



departments or the resettlement managements are responsible for looking into the appeals and

usually try to offer them satisfying solutions. Normally the local people seldom write down the

appeals on paper. So it is difficult to get statistics about the content, quantity, types, and the

solving courses of the appeals. The assessment was based on the feedback of the questionnaires,

the interviews. According to the mentioned results, the people are basically satisfied with the

resettlement work.



8.Project organization and management

8.1 The resettlement institutes/agencies

In order to guarantee the legal rights and interests of the project affected people and ensure the

smooth progress of project implementation for land acquisition and resettlement, a complete

project management mechanism was set up with the Sanmenxia city finance bureau as the

governing department of government. The local PMOs were set up in Shanxian county and

Lingbao city (2 staff each in each LPMO) to be in charge of the resettlement and compensation.

Daying town and Yangdian town have set up LPMOs with 2 staff each. Members of the villager’s

committee from Xiacun and Huangcun was delegated to provide assistances to the work of land

acquisition and resettlement. See Figure 8-1 for the project resettlement organization chart.

Figure 8-1 Project resettlement organization chart

8.2 The resettlement staff

Table 8-2 project resettlement management and staff

Name of institute/agency Number of staff Staff composition

Sanmenxia city project management

office (PMO)

2 public servant

Lingbao city, Shanxian county project

management office (PMO)

2 for each public servant

Yangdian town, Daying town project

management office (PMO)

2 for each public servant

Yuanfen company, Amusi company 2 for each Technical

Villager’s committee of Huangcun and

Xiazhuang 3～4 for each Member of villager’s committee and

resettlement family representatives

external assessment institute/agency 3 Resettlement specialist

Sanmenxia city PMO (in finance bureau)(2)

Daying town PMO, Yangdian town PMO(2+2)

Yuanfen company, Amusi company(2+2)

Project affected town, village, group, and farmers

External supervision/ monitoring agency

Shanxian county, Lingbao city state land

resource bureau

Shanxian county PMO, Lingbao city PMO(2+2)



The resettlement management offices were set up at different level and certain staffs were

allocated. See Table 8-2 for detail.

8.3 The resettlement institutes/agencies-composition and specifications

The duties and responsibilities of the LPMOs are defined as following:

The county/city LPMOs would:

-Provide overall directions and management on the resettlement work on project land acquisition,

land allocation, progress plan and implementation;

-To be responsible for the drafting of plan, disbursement and supervision;

-To conduct inspection and acceptance with the county/town government;

-To coordinate the parties related as the project implementation agencies, design institutes,

supervision, monitoring agencies, etc;

The towns project management office:

-To offer assistance on the ADB-loan project resettlement work;

-To facilitate the survey and review of project data regarding the resettlement;

-To conduct general plan and implementation of the plan and disbursement;

-To organize the inspections and acceptance checks;

-To receive and handle the grievance and complaint of the project affected people;

-To facilitate the work of parties and settle the dispute in case of necessary;

8.4 Office conditions of the resettlement institutes/agencies

The LPMOs are facilitated with well equipped offices and means of transportation and

communication as computers, printers, copy machines, telephones and mobile phones,

automobiles and motorcycles.

8.5 Operation and internal management of the resettlement institutes/agencies

The local government at different level paid great attention the management of the project and

allocated experienced staff for the LPMOs with clearly defined duties and responsibilities for each

staff. Indicators were set up for the better operation of the organization.

The LPMOs carried out the duties and responsibilities throughout the resettlement process. The

made a lot of effort to coordinate between parties and to settle down difficulties and disputes to

keep the project going in the right way. The project was correctly implemented and the stable

development of the local social and economic was safeguarded.

8.6 Training of staff on resettlement

In order to make sure that the resettlement management offices can carry out the work in the

right way and safeguard the legal rights and interests of the project affected people, certain

trainings were hold by the Sanmenxia city project management office (PMO) with the

participation of LPMO staff on resettlement policy, regulations, procedures, compensation

qualifications, disbursement, etc.



9. Monitoring and assessment

9.1. Monitoring and assessment report

According to the provisions and requirements stated in the related laws and regulations of the

government, as well as the terms in the Loan Agreement, the resettlement internal monitoring

should be carried out by the relevant functional departments of Sanmenxia city and the project

county/city. The independent external monitoring is delegated to the resettlement monitoring

institute of North China Institute of Water Conservancy and Hydroelectric Power. The monitoring

is being conducted throughout the whole process of project resettlement and in accordance to the

laws and regulations to ensure the smooth progress of the project and safeguard of legal rights and

interests of the project affected people. The monitoring is carried out with the principle of justice,

fairness, open, and practical and realistic. The government and the Bank were duly informed by

various reports for the findings and comments /recommendations submitted as scheduled and upon

request.

9.1.1 Internal monitoring

The project internal monitoring was carried out by the project leading groups from the

city/county/town government with the assistance of relevant local government functional

departments with the mechanism of from the bottom up reporting system to keep the monitoring

transparent and with high efficiency. The internal monitoring institute/agency was set in the

project county/city for internal supervision and monitoring to ensure the smooth progress of

resettlement work in accordance to the plan and safeguard the legal rights and interests of the

project affected people.

It is stated in the Land Law that:“Chapter 6, Article 66”: the county and high level government

land resource administration department should take the responsibility of inspection and

supervision on the action of land use and check on any breach of laws and regulations;

It also stated that the personnel in charge of the monitoring and supervision should have an

intimate knowledge of the laws and regulations. They should be devoted to one's duty and conduct

their work with justice and impartiality.

The various functional departments of Sanmenxia city and project county/city conducted the

project supervision and monitoring successfully and reported to the provincial project

management office (HPPMO) in due time.

The works of the internal monitoring include the following：

-land acquisition formalities and procedures;

-land acquisition plan and implementation;

-land acquisition and resettlement compensation qualification and criteria;

-compensation disbursement and allocation;

- handover of the land;

-temporary land use and compensation;

-restoring of production and income;

-public participation and consultation;

-grievance and complaint ;

-training of staff and resettlement people;

-attention to the vulnerable groups;



The LPMOs from Sanmenxia city/project county/city conducted the management of the project

processing and internal monitoring with the assistance of government departments and consultants

regarding the issues related to the resettlement as communication between the parties, channel of

discussion and consultation, compensation and disbursement, restoring of income and living

standard, handling of grievance and complaint, etc. See Table 9-1-1 for detail.

Table 9-1-1 Internal monitoring indicators and contents

Monitoring

institute/agency

Monitoring

type

Monitoring indicators and contents

Internal

monitoring and

assessment

Resettlement

action plan

·conduct of resettlement staff and training of farmers;

·output of resettlement plan;

·resettlement compensation disbursement;

·land acquisition process and outcome;

Rights and

interests of

resettlement

people

·safeguard of resettlement people of their legal rights and

interests;

·timing and amount of resettlement compensation disbursement;

·restoring of production and income of resettlement people;

.resume of living standard and social status of the resettlement

people;

. resettlement community-facility and service;

Grievance,

complaint

and

outstanding

issues

·participation and consultation of resettlement people;

·understanding of the laws, legal rights and interests of the

resettlement people;

·handling of grievance and complaint, and the outcome;

·settling of dispute and contradiction;

Output

monitoring

·the change of social status and economic status of the

resettlement people before and after resettlement;

·the change of life and consumption, income and expenses

before and after resettlement;

9.1.2 Independent external monitoring and assessment

9.1.2.1 The independent external monitoring and assessment-objectives

According to the requirement of the “Loan Agreement”, an external independent monitoring

agency (Resettlement monitoring institute of North China Institute of Water Conservancy and

Hydroelectric Power) was delegated to carry out the work of external monitoring on the project

resettlement and compensation. The objectives of the project monitoring and assessment is to

make sure that the works are carried out accordance to the principles, rules and regulations stated

in the project resettlement action plan and guarantee the achievement of the general project

objective and indicators:

-setting up and implementing of compensation criteria；


-land acquisition handover and use;

-temporary land use and compensation;

-restoring of production and income;




-handling of grievance and complaint;

-training plan and implementation;

-attention to vulnerable groups;

-resume of social and economic status of the resettlement people;

-resettlement people social adaptability;

The work of project monitoring includes the collection of basic data for the general information

of their production and life before and after the resettlement. The changes of the data were under

monitoring and assessed during the process and feedback reported to relevant government and

project management offices for reference. The expert team made comments and recommendations

to the project management offices regarding the issues encountered for social and economic

development and improvement of work.

9.1.2.2 The independent external monitoring and assessment-implementation

The expert team of project monitoring from NCWU concentrated its work into three main sections

regarding the arrangement of resettlement, the restoring of production and income, the social

adaptability of the resettlement people. They conducted the work with high efficiency and with the

assistance of the resettlement representatives, villager’s committee, and local resettlement staff.

The resettlement sample families were selected to better represent the general people and they are

families with different backgrounds of social and economic status with high, medium and low

level to guarantee the rationality of the outcome.

The monitoring covers the following:

-safeguard of rights and interests of resettlement people, compensation, employment, subsidy,

assistance, etc;

-water supply, electricity, education, healthcare and sanitary, transportation and communication,

agriculture activities and economic activities, etc;

-social adaptability and adjustment of the resettlement people including restoring of living

conditions, education of youth and children, attention to vulnerable groups, training, public

participation and consultation, functioning of non-governmental organizations (NGOs), the

attitude of resettlement people, grievance and complaint and handling, preferable policy, gender

issues, etc.

The methodology of monitoring implemented in the work is generally to ensure the smooth

progress of the project implementation and safeguard of the legal rights and interests of the project

affected people, especially the women and vulnerable group.

Qualitative and quantitative methods were use in the monitoring:

-sampling: it is done with regard to sample families with different income and economic background,

gender, vulnerable groups. The data on compensation fund, disbursement, effectiveness, impact and

other indicators;

-discussions: with project related parties as local government, non-governmental organizations

(NGOs), community, resettlement people, etc;

-interviews;


-site visits;

-non-formal and random sampled interviews;

Report on assessment of the resettlement community social and economic status include:



-conclusions of monitoring and assessment;

-potential and existing magnificent problems;

-comments and recommendations for solution;

Meetings and discussions were hold with the project management institute/agency to find

solutions for issues of matter.

Table 9-1-2 Project resettlement external monitoring and assessment outline

Monitoring

institute/agency

Monitoring

type

Monitoring contents

External

monitoring and

assessment

Resettlement

family basic

information

Location, householder, nationality, type of house;

Family members and structure, age, education and skill;

Use of land and other resources;

Source of income, level of income, occupation and

employment;

Restoring of

living

conditions,

production

and income

The restoring of living conditions after resettlement;

The disbursement of resettlement compensation;

Check if the amount of compensation enough for their loss;

The measurement taken by the government to help and assist

the people with employment and other ways;

The effectiveness of the government plan to restore production

and income;

Comment of

the

resettlement

people

The understanding and awareness of resettlement people to the

project resettlement policy, procedures, their rights and

interests, etc;

The comment of resettlement people on the change of their

living conditions and production, income, etc;

The handling of resettlement people’s grievance and complaint ,

procedures and outcome;

Effectiveness

of the

resettlement

action plan

Check the data for compensation and make necessary

corrections;

Assess the progress, budget, and outcome of the resettlement

action plan;

The handling of contingencies;

9.1.2.3 Special considerations

The monitoring team paid special attention to the following issues:

-status of women in family and project participation with comments and recommendations to the

local authority;

-attention to vulnerable groups including the aged, disabled, and etc;

-the use of the resettlement fund;



9.2 Monitoring report-contents and submission

Contents:

-land acquisition, temporary land use-progress and quality;

-restoring of resettlement people’s production and income;


-use of land compensation and resettlement subsidy;

-use and allocation of compensation to collective property;

-capacity building of resettlement institutes/agencies;

-attention to vulnerable groups;

-gender issue;


-grievance and complaint;

-difficulties encountered and recommendations;

-contentment of the resettlement people;

-conclusions of monitoring and assessment;

-outstanding issues and potential considerations;

-preventive measurement and recommendations;

The reports should be submitted to:

-Sanmenxia city finance bureau-project management office;

-the Asian Development Bank (via Sanmenxia city PMO);

All the reports should be made and submitted in accordance to the regulations stated in the project

action plan(RAP).



10.Summary on the project resettlement

10.1 Project resettlement-good practices

(1). The works of data collection and resettlement compensation is properly arranged

In order to ensure the transparency and justice of work, all the data collected and information was

publicized for public supervision and monitoring. The data should be fixed with the consent and

signature of the project affected people for confirmation.

The way of compensation disbursement in Huangcun village and Xiacun village are a bit different

but both with good outcome. In Huangcun, the local government department deposit the money

into bank account and hand in the bank book to the resettlement people, while in Xiacun the

Amusi company deliver the money directly to the hand of the resettlement people. Both of them

would get the confirmation of the resettlement people regarding the quantity of property and land

and the amount of compensation to ensure the people is duly paid for their loss of land and etc.

(2). Local government attached great importance to the work of resettlement

The resettlement work is carried out successfully with the strong support and assistance from all

levels of government as Sanmenxia city, project county/city, town and village authorities and the

villager’s committee.

10.2 Project resettlement-lessons learnt and recommendations

The difficulties encountered in the project resettlement was that the formalities of land acquisition

took much longer time than planned which caused the delay of project progress. We recommend

the following:

(1). On-the-spot investigations/inspections should be carried out to collect practical data and avoid

mistakes and inconsistency;

(2). The project resettlement action plan is supposed to be drafted with full consideration of the

necessary procedures and timing of land acquisition and related issues;

10.3 Project resettlement-outstanding issues

The project resettlement has been completed successfully and the social and economic

development of the resettlement community is kept on the right way. According to the findings in

the monitoring, there is no outstanding issues in the project resettlement.



Reference

(1) The terms of reference (TOR) for the monitoring of project resettlement social and

economic development on Henan comprehensive agriculture development project with

ADB loan;

(2) The Loan Agreement of The People’s Republic of China and ADB;

(3) The project resettlement report;

(4) The ADB Project Resettlement Handbook;

(5) Monitoring and Evaluating report about development of society and economy in ADB

financed Henan high efficiency agriculture comprehensive development project, May 2010



Attachment



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