Resettlement Plan October 2012

People’s Republic of China: Hunan Xiangjiang Inland Waterway Project Prepared by Xiangjiang Navigation Construction and Development Co. Hunan, PRC for the Asian Development Bank.

The People's Republic of China

Hunan Xiangjiang Inland Waterway Project

Tugutang Navigation and Hydropower Complex

Resettlement Plan

(Final)

Xiangjiang Navigation Construction and Development Co.

Hunan, PRC

August 2012

TABLE OF CONTENTS A. EXECUTIVE SUMMARY ______________________________________________________ 1

B. PROJECT DESCRIPTION _____________________________________________________ 4 B1 Project Background and Description ___________________________________________________ 4 B2 Project Impacts ____________________________________________________________________ 5 B3 Measures to Reduce Resettlement _____________________________________________________ 8 B4 Socio-Economic Benefits ___________________________________________________________ 10

C. SCOPE OF LAND ACQUISITION AND RESETTLEMENT ________________________ 11 C1 Permanent Land Requirement________________________________________________________ 11 C2 Temporary Land Occupation ________________________________________________________ 12 C3 Building and Structure Removal ______________________________________________________ 13 C4 Public Facilities __________________________________________________________________ 15 C5 The Affected People _______________________________________________________________ 17 C6 Income Loss Analysis ______________________________________________________________ 18 C7 Summary of Impacts _______________________________________________________________ 19

D. SOCIOECONOMIC CHARACTERISTICS ______________________________________ 21 D1 Project Influence Area _____________________________________________________________ 21 D2 Basic Situation of the Affected City/County _____________________________________________ 21 D3 Socioeconomic Survey _____________________________________________________________ 22 D4 Socioeconomic Characteristics of the Affected Population _________________________________ 23 D5 Vulnerable Groups ________________________________________________________________ 33 D6 Gender Aspects ___________________________________________________________________ 36

E. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION ________ 38 E1 Methods of Public Consultation and Participation __________________________________________ 38 E2 Consultation during RP Preparation _____________________________________________________ 38 E3 Public Participation and Consultation during RP Implementation ______________________________ 41 E4 Information Disclosure _______________________________________________________________ 42

F. GRIEVANCE REDRESS MECHANISMS _______________________________________ 44 F1 Introduction ________________________________________________________________________ 44 F2 Current Practice _____________________________________________________________________ 44 F3 Proposed Grievance Redress System ____________________________________________________ 45 F4 Responsibilities of PCC ______________________________________________________________ 47

G. LEGAL FRAMEWORK AND RESETTLEMENT POLICY ________________________ 48 G1 Legal Framework _________________________________________________________________ 48 G2 Project Resettlement Policy _________________________________________________________ 51 G3 Resettlement Standards _____________________________________________________________ 52

H. ENTITLEMENTS, ASSISTANCE AND BENEFITS _______________________________ 60 H1 Cut-off Date for Eligibility to Project Entitlements _______________________________________ 60 H2 Assistance policy from the Project ____________________________________________________ 60 H3 Benefits _________________________________________________________________________ 61

I. RELOCATION OF HOUSING AND SETTLEMENTS _____________________________ 66 I1 Resettlement Needs __________________________________________________________________ 66 I2 Resettlement Strategy ________________________________________________________________ 66 I3 Relocation and Resettlement of Private Houses ____________________________________________ 66 I4 Relocation and Resettlement for Small Hydropower Plants ___________________________________ 67 I5 Reconstruction of Public Infrastructure __________________________________________________ 68

J. INCOME RESTORATION AND REHABILITATION _____________________________ 69 J1 Context ___________________________________________________________________________ 69 J2 Analysis of Livelihood Restoration Options _______________________________________________ 69

J3 Formulation of Income Restoration Strategy ______________________________________________ 69 J4 Income Restoration __________________________________________________________________ 70 J5 Gender Issues ______________________________________________________________________ 73 J6 Vulnerable Households _______________________________________________________________ 73

K. RESETTLEMENT COST AND FINANCING PLAN ______________________________ 75 K1 Basic Costs ______________________________________________________________________ 75 K2 Taxes and Fees ___________________________________________________________________ 81 K3 Contingency _____________________________________________________________________ 82 K4 Other Costs ______________________________________________________________________ 83 K5 Overall Resettlement Cost __________________________________________________________ 83 K6 Flow of Funds and Compensation Options ______________________________________________ 84

L. INSTITUTIONAL ARRANGEMENT ___________________________________________ 87 L1 Resettlement Organization ____________________________________________________________ 87 L2 Accountability ______________________________________________________________________ 87 L3 Staffing and Capacity Building _________________________________________________________ 90

M. IMPLEMENTATION SCHEDULE ___________________________________________ 92 M1 Principles of Resettlement Implementation _____________________________________________ 92 M2 Implementation Schedule of Resettlement ______________________________________________ 92

N. MONITORING AND REPORTING ____________________________________________ 94 N1 Internal Monitoring ________________________________________________________________ 94 N2 External Monitoring and Evaluation ___________________________________________________ 94

LIST OF TABLES Table 1: Summary of Project Components ........................................................................ 5 Table 2: Comparison of Major Alternative Dam Site ......................................................... 8 Table 3: Comparison of Land Requirement of Upstream Dam Site .............................. 10 Table 4: Summary of Permanent land required for dam and ship lock ........................ 11 Table 5: Summary of Permanent land required for Ports .............................................. 11 Table 6: Summary of Permanent land required for Reservoir Impoundment .............. 12 Table 7: Summary of Temporary Land Occupation ........................................................ 12 Table 8: Summary of House Removal in Damsite and Ship-lock Area ......................... 13 Table 9:Summary of House Removal in the Ports .......................................................... 13 Table 10: Summary of House Removal in the Reservoir Area ....................................... 14 Table 11: Summary of Attachments to Removed Houses .............................................. 14 Table 12: List of Affected Public Facilities ...................................................................... 16 Table 13: Summary of Major Adverse Impacts of the Project ........................................ 19 Table 14: Socioeconomic Status of the Counties in the Project Area .......................... 21 Table 15: Selected Demographic Characteristics ........................................................... 24 Table 16: Natural Resources ............................................................................................. 26 Table 17: Physical Resources........................................................................................... 27 Table 18: Distribution of Annual Net Income per Capita ................................................ 27 Table 19: Relative Importance of Income Sources in Surveyed Villages ..................... 29 Table 20: Income Sources and Per Capita Net Income of Households ........................ 30 Table 21: Per Capita Expenditure of Sampled Households ........................................... 30 Table 22: Perceived Disadvantages and Concerns of the Project ................................ 31 Table 23: Anticipated Impacts of Project on Village—Village Survey ........................... 31 Table 24: Sampled AP Preferences for Mitigation Measures ......................................... 32 Table 25: Poverty Population in Project Affected Area .................................................. 33 Table 26: Rural Poor in Surveyed villages ....................................................................... 34 Table 27: Stakeholder Participation and Consultation Record ...................................... 39 Table 28: Public Participation and Consultation Plan .................................................... 41 Table 29: Public Complaints Database ............................................................................ 46 Table 30: Resettlement Principles – Summary ............................................................... 52 Table 31: Compensation Standards of Land Acquisition in Hunan Province .............. 53 Table 32: Calculated AAOV of Paddy Land in Hengnan and Leiyang (CNY) ................ 53 Table 33: Compensation Standards for Land (CNY/Mu) ................................................. 54 Table 34: Calculation of the Restoration Cost of Temporary Occupied Land .............. 55 Table 35: Calculation of Replacement Cost for Private House (100 m2) ....................... 56 Table 36: Compensation Standards for Standing Crops (CNY/mu) .............................. 58 Table 37: Entitlement Matrix ............................................................................................. 63 Table 38: Compensation Cost of Permanent Land Acquisition .................................... 75 Table 39 Compensation for Temporary Land Occupation ............................................. 77 Table 40 Compensation Cost for Rural Residential Houses .......................................... 78 Table 41: Removal Subsidy for Rural Residential Houses ............................................ 78 Table 42: Compensation for House Facilities and Attached Trees ............................... 79 Table 43: Cost of Agriculture and Small Irrigation Facilities ......................................... 80 Table 44: Restoration Cost of Public Facilities and Infrastructure ............................... 81 Table 45: Taxes and Fees to be Paid by the Project ....................................................... 82 Table 46: List of Other Cost Items .................................................................................... 83 Table 47: Overall Resettlement Cost Estimation ............................................................ 83 Table 48: Staffing for Implementing the Resettlement Plan ........................................... 90 Table 49: Schedule for Resettlement Implementation Training ..................................... 91 Table 50: Resettlement Implementation Schedule ......................................................... 92

LIST OF FIGURES Fig 1: Location map of Tugutang Navigation & Hydropower Project ............................. 7 Fig 2: Income Distribution of Surveyed Households (CNY per capita)......................... 28 Fig 3: Current Practice of Grievance Redress for the Project ....................................... 45 Fig 4: Concept of Grievance Redress Mechanism for the Project ................................ 47 Fig 5: Flow of Funds for Compensation .......................................................................... 86 Fig 6: Project Resettlement Organization Chart ............................................................. 88

LIST OF ANNEXES Annex 1: Farmland Impact Analysis of Affected Villages .............................................. 96 Annex 2：Farmland Impact of Seriously Affected Sub-villages ................................. 100 Annex 3: Names of Government Participants in PPTA ................................................ 104 Annex 4:Resettlement Information Booklet .................................................................. 106 Annex 7: Summary of Farmland Protection Program ................................................. 118 Annex 8: Approval of Domestic RP by HNRB .................................................................... 121

ABBREVIATIONS

ADB – Asian Development Bank AAOV – average annual output value AP – affected persons, equivalent to DP as defined by ADB CRO – County/City Resettlement Office DMS – detailed measurement survey DPs – displaced persons EA – executing agency FS – Feasibility Study HHDI – Hunan Hydropower Design Institute HMG – Hengyang Municipal Government HYRB – Hengyang Municipal Resettlement Bureau HPRB – Hunan Provincial Resettlement Bureau HPDOT – Hunan Provincial Department of Transport HPG – Hunan Provincial Government HPTDI – Hunan Provincial Transportation Design Institute IA – implementing agency LAR – land Acquisition and resettlement M&E – Monitoring and Evaluation MOT – Ministry of Transport NSWL – normal storage water level PPTA – project preparatory technical assistance RP – resettlement plan TOR – terms of reference TRO – Township Resettlement Office XNCD – Hunan Xiangjiang Navigation Construction and Development Company CNY – Chinese Currency, Yuan: US$1.00 = CNY6.65 Mu – area of land – 1 hectare = 15 mu

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A. EXECUTIVE SUMMARY

1. The proposed Tugutang Navigation and Hydropower complex is located in Yunji

Town of Hengnan County, 39 km upstream of Hengyang City, which belongs to midstream reach of Xiangjiang River. The major components of the project consist of (a) multi-purpose dam of concrete in Class II; (b) power generation plant with a designed capacity of 80 MW, including a 2.9 km 110 Kv transmission line to connect the plant with the regional power grid; (c) two ports with designed annual throughput of goods of 220,000 tons and 175,000 tons, respectively; and (d) protection works in the reservoir area, including reinforcement of an aggregate of 30.3 km of the banks of tributary rivers. Hunan Xiangjiang Navigation Construction and Development Co. (XNCD) under the Hunan Provincial Department of Transportation (HPDOT) is the implementation agency for the project. The project will commence in December 2012 and will be completed in December 2016.

2. The project impacts include permanent land acquisition, temporary land

occupation, and house demolition. There will be both physical and economic displacement. The detailed measurement survey (DMS) conducted during March-July 2011 show that land acquisition and house demolition will affect 314 sub-villages in 78 villages of 13 township/towns in 3 counties (city). Permanent acquisition of land is estimated to be 5,875.93mu (391.73 ha). This includes land acquisition for: (i) dam, 814.15 mu (54.27 ha); (ii) transmission line, 0.5 mu; (iii) ports, 48.93 mu (3.26 ha); and (iv) reservoir inundation and protection works, 5,011.69mu (334.06 ha). Temporary occupation of land during the construction of the dam and ship lock is estimated to be 386.33 mu (25.75 ha), and 1,230.9 mu (82.1ha) for farmland protection works. A total of 63 households (290 persons), including 19 households (78 persons) in the dam and ship lock area and 14 households (12 persons) in the location of the ports, and 40 households (200persons) in the reservoir area, will lose entire houses and must relocate. It is estimated that 38,678 persons are directly affected by land acquisition and house demolition. 1,230.9

3. In order to avoid or minimize land acquisition, close consultation on site selection

for the dam and the port and on the reservoir inundation area have been carried out with local villages, groups and affected people during the feasibility study. Further study and consultation with stakeholders are needed in connection with the proposed protection works to be carried out in the reservoir area. In addition to reinforcing about 30.3 km of the banks of tributary rivers, project authorities have decided to protect low-lying farmland by filling subsoil to raise the elevation of 5,195.98mu (346.4ha) farmand, of which, 4,816,44 mu (321.1ha) of paddy land and 21.56 mu (1.44ha) of dry farmland, in 75 locations in the reservoir to a height of 0.5 m above the designed farmland flooding line.

4. This RP is governed by ADB’s Safeguard Policy Statement (June 2009) and

national and local laws and regulations of the People’s Republic of China. The key national laws and regulations are: Land Administration Law of the People’s

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Republic of China (2004), and State Council Order No. 471(2006) on “Land Acquisition and Resettlement Provisions for Large and Medium Scale Hydropower Project Construction”. Key Hunan provincial regulations are: (a) HGD No 43 (2009) Notice of Publicizing the Compensation Standards of Land Acquisition in Hunan Province by Hunan Provincial Government (HPG), and (b) HGD No 9 (2010): Notice of Reinforce on Resettlement of Large and Medium Reservoir in Hunan Province.

5. Following consultation with the local government and affected persons (APs), the

compensation standards will be adopted: (i) for paddy land of Class I 35,569CNY/mu in Hengnan county, 34,380CNY/mu in Changning city, and 38,709CNY/mu in Leiyang city, (ii) for paddy land of Class II 30,910CNY/mu in Hengnan county, 30,030CNY/mu in Changning city, and 34,188CNY/mu in Leiyang city, (iii) for paddy land of Class III CNY28,549/mu in Hengnan county, CNY26,873/mu in Changning city, and CNY29,887/mu in Leiyang city, (iv) for paddy land of Class IV 26,516CNY/mu in Hengnan county, 23,843 CNY/mu Changning city and 27,324 CNY/mu in Leiyang city, and (v) for paddy land of Class V 24,842CNY/mu in Hengnan county and 24,245CNY/mu in Leiyang city . Other land will be compensated by related coefficient with paddy land. Compensation standards for house demolition are set forth at CNY709/m2 for steel/concrete house, CNY661/m2 for brick/concrete house, CNY581/m2 for brick/wood house, and 529CNY/m2 for wood house. In addition, APs will also get compensation for affected facilities, and will be provided moving transport subsidies, resettlement insurance, etc. All values are equivalent to the market replacement value. The project will likewise set aside post-assistance funds to assist APs affected by productive assets at the rate of CNY600/year per person for a period of 20 years.

6. Income restoration measures for the APs include cash compensation, land

redistribution, priority in getting jobs during the project construction, etc. During consultations held with the APs, they voiced their preference for cash compensation. Land redistribution will be carried out with guidance from the local government. A special fund of CNY 3.05 million for vulnerable APs, as well as priority in job recruitment, is provided in the RP to implement activities for income restoration.

7. House removal in the project totals 63 households with an area of 18,372 sq.m..

The APs, prefer to construct replacement houses by themselves within their present village with the assistance from the neighbors and relatives; this preference was confirmed during follow up consultation.

8. Since July 2009, a series of socio-economic surveys and public consultations

have been carried out by the XNCD, the design institute and the PPTA consultants. Specific consultations were organized with affected households, heads of village collective and women members of the affected households and target communities. In order to process unexpected issues and ensure smooth resettlement implementation, a Public Complaints Centre (PCC), complementing the current system of grievance readdress mechanism, has been established in

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the site office to accelerate the process of complaint response. The draft RP has been disclosed in June 2012, to relevant local officials down to the township level, which will be available to affected households. In addition, Resettlement Information Booklet (RIB) has been distributed to all affected sub-villages and affected households in May 2012. Once the updated RP is approved, it will be disclosed to the relevant local government.

9. The total cost of resettlement for the project is estimated at CNY512.72 million,

approximately accounting for 18% of the total project costs.

10. Being consistent with the overall project construction schedule and the target of commencing construction activities in Decemberber 2012, land acquisition and resettlement for dam site will start in October 2012. The implementation of land acquisition and resettlement for the ports and reservoir inundated area will commence in late 2015. All the resettlement activities will be completed by end 2015, when the reservoir is scheduled for water storage.

11. During RP implementation, XNCD will submit to ADB quarterly internal monitoring

resettlement progress report, in addition to a semi-annual M&E report by an independent monitor to be hired by XNCD. The independent monitor will submit to ADB, for 2 years following completion of RP implementation, an annual external M&E to ensure livelihoods have been fully restored and are sustainable. After completion of RP implementation, XNCD will submit to ADB a resettlement completion report which will include lessons learned from the project.

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12. B. PROJECT DESCRIPTION

B1 Project Background and Description

B1.1 Project Background 13. Xiangjiang River is a first grade tributary of Yangtze River, as well as the largest

river in Hunan Province. It is the mother river of Hunan and originates from Haiyang Mountain located in Lingchuan County of Guangxi Province. It flows into Hunan at Douniu Hill of Quanzhou, goes through Pingdao, Yongzhou, Hengyang, Zhuzhou, Xiangtan and Changsha and runs into South Dongting Lake at Haohekou of Xiangyin County, before joining the Yangtze River at Chenglingji. Its main course has a length of 969 km with a catchment area of 94,660 km2 while its main course in Hunan is 773 km long with a catchment area of 85,383 km2, accounting for 40% of the total area of the province.

14. As determined by navigation class and standards defined in the Master Plan of

Main Streams on Xiangjiang River in 1986, Xiangjiang River will be developed with nine cascades from upstream to downstream, namely Taizhou, Xiaoxiang Hydropower Station (completed), Wuxi Hydropower Station (completed), Xiangqi Complex (under construction), Jinweizhou complex (under construction), Tugutang complex, Dayuandu Complex (completed), Zhuzhou Complex (completed), and Changsha Complex (under construction). Therefore, the proposed Tugutang Complex is the last one to be developed in middle section of Xiangjiang River. Its completion will extend the high-grade navigation channel by a length of 133 km upstream from Hengyang City, and will play an important role in promoting the social and economic development of the basin area of the upper and middle sections of Xiangjiang River B1.2 Project Description

15. The proposed complex is located in Yunji Town of Hengnan County, 39 km upstream of Hengyang City, which belongs to the midstream reach of Xiangjiang River (see Figure 1: Project Location Map). The major components of the project are shown in Table 1, namely, (a) multi-purpose dam of concrete in Class II; (b) power generation plant with designed capacity of 80 MW and a 2.9 km 110 Kv transmission line to connect the plant with the regional power grid; (c) two ports with designed throughput of goods of 220,000 tons and 175,000 tons, respectively; and (4) protection works in the reservoir area. The RP covers the section from the proposed complex to Jinweizhou Complex, located 58 km upstream and covering 14 townships in 3 counties/cities. The topography of the project area is characterized by hills with narrow valleys of paddy fields.

16. The Xiangjiang Navigation Construction and Development Co (XNCD) under

Hunan Department of Transportation is the implementation agency for the project. The project will commence in December 2012 and will be completed in December 2016.

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Table 1: Summary of Project Components Components Brief Description Major Impacts

Dam, shiplock and power plant

Multi-purpose concrete class 1 dam, single shiplock and power generation plant with a design capacity of 80 MW

1 village in Yunji town and 3 villages in Xiangyang town, Hengnan County with permanent land acquisition of 657.5mu, of which 505.9mu is farmland. Temporary land occupation of 386mu (25.7ha).

Transmission system Construction of 3 transmission towers to connect the power plant to the regional grid about 2.9 km away.

2 villages in Yunji town of Hengnan county with permanent land acquisition of 0.5mu for the transmission towers

Ports Yunji Port to be constructed with designed throughput of goods of 220,000 tons Songbei Port to be constructed with designed throughput of goods of 175,000 tons

2 villages with one in Yunji town in Hengnan County and one in Songbei town in Changning City with permanent land acquisition of 48.9mu(3.3ha)

Reservoir impoundment The Xiangjiang River will be raised from 52.0 m to 58.0 m at the dam site, which will create a reservoir in upstream tributaries with an aggregate surface area of 5.27 km2.

The reservoir will inundate 5,011.7mu (334.1ha) of land at NSWL which affects 3 counties, 13 townships, 76 villages, and 296subvillages. 1,496.4mu (99.7ha)of the affected land are farmlands.

Protection works 30.3 km-long river bank to be raised, reinforced and protected in 57 locations. About 4,758.6mu (317.2ha)of farmland in 75 locations to be raised and protected.

Permanent land of 329.3mu (21.9ha) with 153.4mu (10.2ha) of farmland, and 1,230.9mu (82.1ha) of temporary land occupation will be required in Hengnan, Changning and Leiyang

Source: Project Feasibility Study and DMS data.

B2 Project Impacts

17. The project impact includes land acquisition and house demolition which will

affect 314 sub-villages in 78 villages of 13 township/towns in 3 counties (city).

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Permanent acquisition of land is estimated to be 5,875.93mu (391.73 ha). This includes land acquisition for: (i) dam, 814.15 mu (54.27 ha); (ii) transmission line, 0.5 mu; (iii) ports, 48.9mu (3.3 ha); and (iv) reservoir inundation and protection works, 5,011.7mu (334.1 ha). Temporary occupation of land during the construction of the dam and ship lock is estimated to be 386 mu (25.7 ha), and 1,230.9mu (82.1ha) for farmland protection works. A total of 63 households (290 persons), including 19 households (78 persons) in the dam and ship lock area, 4 households (12 persons) in the location of the ports and 40 households (200persons) in the reservoir area, will lose entire houses and must relocate. The DMS data shows that 38,288 persons are directly affected by land acquisition and house demolition. In addition, two small hydropower plants will be flooded with 390 employed staff, of which 9 staff needing to be reemployed. Therefore, a total of 38,678 persons are directly affected by the project.

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Fig 1: Location map of Tugutang Navigation & Hydropower Project

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B3 Measures to Reduce Resettlement

18. Project preparation took several measures to minimize project impact on land

and structures. Some of the major principles that were followed during the selection of the dam site included: (1) avoid densely populated residential areas; (2) avoid or minimize the acquisition of high-quality farmland; (3) make use of national or local roads to the proposed construction sites; and (4) avoid or minimize the acquisition of environmental sensitive places. Consistent with the aforementioned, the Hunan Hydropower Design Institute (DI) undertook strict verification and comparison of the proposed dam sites, reservoir inundation level, and layout of the borrow pit and waste disposal. The details of various concrete measures taken to minimize project impacts are as follows:

B3.1 Determination of Normal Storage Water Level

19. The area of land to be inundated by the Project will be determined by the flooding

line which is controlled by the normal storage water level (NSWL) in the river and the operation of the reservoir. Comparison of three NSWLs of 57.5 m, 58 m, and 58.5 m above sea level was done by the DI during the pre-feasibility study. The results (shown in Table 2) indicate that water levels of 58 m to 58.5 m will result in significant increase in land acquisition by as much as 1,399.49u (93.3 ha), of which, 982mu (65.5 ha) are farmlands. On the other hand, and NSWL of 57.5 m to 58 m will require the acquisition of 309.11u (20.6 ha) of farmland. Bearing in mind the need to optimize the complex’s functions for irrigation, navigation and power generation, an NSWL of 58 m has been recommended by the DI.

20. The amount of land to be inundated in the reservoir area will also be affected by

the reservoir’s operation. To minimize inundation in the reservoir area, when water inflow into the reservoir is more than the maximum required by the turbine during the flooding (rainy) season, the water level at the dam will be lowered accordingly by opening the sluice gates to maintain natural flooding condition.

B3.2 Selection of Dam Site

21. Other than comparing three NSWLs, two alternative dam sites were studied by

the DI during pre-feasibility study stage. As Table 2 shows, the resultant amount of land to be inundated in the proposed upstream dam site is much smaller than that of the downstream dam site. Particularly, farmland to be acquired is less by 1,495 mu (99.7 ha). Therefore, the upstream dam site is recommended for the project.

Table 2: Comparison of Major Alternative Dam Site

Item Unit Upstream Dam Site Downstream Dam Site Difference (Up-Down)

57.5 m 58 m 58.5 m 58 m 58 m

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Item Unit Upstream Dam Site Downstream Dam Site Difference (Up-Down)

Total 7147.71 7730.43 9129.92 9949.08 -2218.65

farmland 3853.18 4162.29 5143.71 5657.06 -1494.77

1.paddy field mu 3770.31 4071.56 5016.28 5514.4 -1442.84

2.dry land mu 82.87 90.73 127.43 142.66 -51.93

pond mu 280.76 288 343.55 404.42 -116.42

woodland 404.26 442.59 484.32 546.33 -103.74

River beach land mu 17 17 17 17 0

Barren land mu 2552.74 2780.78 3101.57 3284.5 -503.72

Transport land mu 39.77 39.77 39.77 39.77 0

House Removal m2 831.66 831.66 0 Source: Pre-FSR

B3.3 Farmland protection program1

22. In order to further reduce the project impact, engineering measures will be taken

in the reservoir area of tributaries to protect the farmland, particularly paddy land to be inundated by the reservoir. Based on the geological survey data, bank failure might occur on the sections with a length of 47.2 km. The first stage of protection is designed on a 30.3 km-long section where residential houses and farmland are located. Another 16.9 km-long section will be further investigated by Project engineers and appropriate measures will be carried out, if warranted, following the construction of the dam. The possible failure bank will be fortified with a concrete wall and raised by 0.3 m above the designed flooding line.

23. Protection of farmland by filling subsoil and raising farmland will be carried out in

low-lying areas in the reservoir area of tributaries to reduce permanent farmland loss as a result of the inundation of the reservoir. The top soil on the farmland to be raised will be peeled and stockpiled in temporarily occupied land. The subsoil will be from the nearby hills of temporarily occupied land. During the stage of pre-feasibility study, 45 locations of farmland, totaling 3256.1u (217.1 ha), have been selected to be protected by raising 0.5 m above the designed farmland flooding line. During the stage of feasibility study, 75 locations of farmland(Annex 6), totaling 5,195.98mu (346.4ha) farmand, of which, 4,816,44 mu (321.1ha) of paddy land and 21.56 mu (1.44ha) of dry farmland, have been selected to be protected. As a consequence thereof, most of the land and resultant economic losses of the APs will be mitigated.

1 The practice in Zhuzhou complex raised 5,860mu farmland with an investment of CNY248million. The total

inundated area was about 21,000mu before farmland protection. Besides the farmland protection by the uplifting and filling with sub-soil, about 5,000mu farmland was protected by building dyke installed with pumping and the area of 5,510mu farmland was protected by newly-built water channel. The inundated area is reduced to 5,609mu after protection works. The proposed farmland protection program will be practical after consulted with the locals.

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24. After the completion of the farmland protection program, 3,320.6u (221.4 ha) of farmland will be protected in 17 of 19 seriously affected villages (i.e., affected by farmland loss of more than 10%). Details of the farmland protection program are indicated in Figure 1: Location map of the Project and shown in Annex 7.

Table 3: Comparison of Land Requirement of Upstream Dam Site Before and After Protection

Item Unit Before Protection After

Protection Difference (Before-After)

Total 7730.4 4478.1 3252.4

farmland 4162.3 906.2 3256.1

1.paddy field mu 4071.5 836.5 3235.0

2.dry land mu 90.7 69.7 21.0

pond mu 288 253.8 34.2

woodland 442.6 442.6 0

River beach land mu 17 17 0

Barren land mu 2780.8 2818.8 -38

Transport land mu 39.8 39.8 0 Source: Pre-FSR B4 Socio-Economic Benefits

25. The Project is expected to have the following socio-economic benefits: (a)

providing a new link between the hinterland of southern Hunan with the Yangzte basin and the major hubs of Wuhan and Shanghai; (b) reducing transportation cost of bulks by providing accommodation for large ships to benefit the economic development in the project area; (c) providing additional safe energy to meet the requirement of power shortage for economic growth; (d) benefits in irrigation, aquiculture and transportation. Furthermore, the project construction will provide possibility of construction of the planned Xiang-Gui (Hunan-Guangxi) Channel connecting the Yangtze River system with Zhujiang River System to provide a second navigation channel linking Hunan with the coastal area.

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C. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

26. During June-September 2009, a preliminary survey was conducted by the HHDI

with the project owner and relevant agencies to determine project impacts (i.e. land acquisition and resettlement). In June 2010, further survey was carried out by HHDI to update the data on project impacts. During March-July 2011, detailed measurement survey (DMS) was carried out and the DMS data were disclosed and approved; this RP is consistent with the domestic RP approved by the government.

C1 Permanent Land Requirement

27. The permanent land required for the project totals 5,975.93mu (391.73 ha), of

which, 1,988.76 mu (132.58ha)will be farmland, 833.73 mu(55.58ha) will be forest land, 307.66 mu (20.51ha) will be pond, and 2,745.78 mu (183.05ha)will be other land. The land will be required for dam and ship lock, ports, transmission system, reservoir impoundment and the protection works, which will be discussed as follows.

C1.1 Permanent Land for Dam and Ship Lock

28. The permanent land required for the dam and ship lock will be 814.15 mu

(54.28ha)with details shown in Table 4.

Table 4: Summary of Permanent land required for dam and ship lock

Total Farmland Forest

Pond Grassland Transport

land Housing

plot Sub total Paddy land Dryland

Sub total timber Shrub

814.15 475.13. 449.31 25.82 186.2 48.84 137.36 24.28 55.74 68.58 3.7

C1.2 Permanent Land for Ports

29. The permanent land required for the ports will be 48.93mu (3.26ha)with details

are shown in Table 5. Yunji port is located in the Yunji industry park, so the APs are not living on the farming land. Songbei port is included in the reservoir area.

Table 5: Summary of Permanent land required for Ports

Total Farmland (Dry land)

Pond Grassland Transport land

Housing plot

Subtotal

Yunji port (Hengnan) 17.31 0.51 17.82

Songbei port

16.78 1.06 2.11 8.6 2.56 31.11

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(Changning)

C1.3 Permanent Land for Transmission System

30. The permanent land required for the transmission system will be 0.5mu farmland.

C1.4 Permanent Land for Reservoir Impoundment and the Protection Works

31. The permanent land required for the Reservoir Impoundment and the Protection

works will be 5,011.69 mu (334.11ha)with details are shown in Table 6.

Table 6: Summary of Permanent land required for Reservoir Impoundment and the Protection works

.

Description Reservoir impoundmen after protection Subtotal Hengnan Leiyang ChangningA. Farmland 1496.35 884.55 186.68 425.12 1. Paddy land 1047.09 638.9 153.37 254.82 2. Dry land 134.92 49.1 9.03 76.79 3. Beach land 314.34 196.55 24.28 93.51 B. Water pond 281.8 109.1 20.34 152.36 C, Orchard 8.5 8.5 D. Forest land 639.03 400.01 239.02 1. timbre land 112.18 102.21 9.97 2. Shrub land 524.62 295.57 229.05 3. Economic land 2.23 2.23 E. Housing land 13.6 2.92 6.27 3.75 F. Transport land 39.49 33.59 0.28 5.62 G. Grass land 2510.61 1801.89 43.82 664.9 H. Barren land 22.97 3.69 19.28 Total 5011.69 3235.75 276.67 1499.27

C2 Temporary Land Occupation

32. The temporary land occupation will take place in damsite and the reservoir areas.

The land temporarily occupied at the damsite includes borrow pits of soil and rock, material stockpile, construction road and mixing plant, while that in the reservoir area includes the borrow pits and farmland to be protected. Details of the temporary land occupation in the damsite,ports and protection works in reservoir areas are shown in Table 7.

Table 7: Summary of Temporary Land Occupation

13

Location Farmland

Water pond

Forest land

Housing land Subtotal Paddy

land Dry farmland

1 Dam site and shiplock 179.58 17.55 186.78 2.42 386.33

2 Protection works 1148.46 3.41 55.5 23.58 1230.95

3 Ports 2.42 2.42 Total 1328.04 5.83 73.05 210.36 2.42 1619.7

C3 Building and Structure Removal

33. The residential buildings to be removed totals 63 households with area of

18,373.23 sq.m. The other structures to be affected are small hydropower plants.

C3.1 Removal of Residential Housing in the Damsite and Ship-lock Area

34. House removal in the damsite and ship-lock area will take place in three villages in two towns of Hengnan County. The total floor area of houses to be demolished is 5939.53 sq.m in 19 households. Details are shown in Table 8.

Table 8: Summary of House Removal in Damsite and Ship-lock Area

Town Village No. of

Affected sub-

villages

No. of Affected HH

No. of AP

Brick- Concrete

(m2)

Brick- wood (m2)

Earth wood Simple house

(m2)

Total Floor

Area (m2)

2 3 4 19 78 2758.75 1955.05 261.02 964.71 5939.53

C3.2 Removal of Residential Housing in the Ports

35. The total floor area of houses to be demolished in the ports is 1,749.22sq.m in 4 households with details shown in Table 9.

Table 9: Summary of House Removal in the Ports

Town No. of Affected HH

No. of AP

Brick-Concrete

(m2)

Brick-wood (m2)

Earth wood Simple house (m2)

Subtotal Floor

Area (m2) Yunji port (Hengnan) 1 3 258.4

Songbei port (Changning)

3 9 99.38 889.05 403.17 99.22 1490.8

Total 4 12 357.78 889.05 403.17 99.22 1749.22

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C3.3 Removal of Residential Housing in the Reservoir Area

36. The total floor area of houses to be demolished in the reservoir area is

10,683.48sq.m in 40 households with 200 people affected. The details of house to be affected are shown in Table 10.

Table 10: Summary of House Removal in the Reservoir Area

Location No. of villag

e

No. of Affected

HH No. of

AP Steel

Concrete Brick-

Concrete (m2)

Brick-wood (m2)

Earth wood

Simple house (m2)

Subtotal Floor Area

(m2) Hengnan 1 3 17 45.5 1916.08 263.27 699.85 2924.7 Leiyang 9 30 157 56.78 1774.11 1651.22 2.24 341.94 3826.29 Changning 5 7 26 167.89 2712.79 422.58 629.23 3932.49 Total 15 40 200 270.17 6402.98 2337.07 2.24 1671.02 10683.48

C3.3 Affected Small Hydropower Plants

37. Two small hydropower plants will be wholly or partly affected of the income from generated power by the rise of the water level resulting in impacts on 390 persons. These are:

a. Lijiang Hydropower Plant: operated in 1976 with installed capacity of 276

kw, will be wholly inundated with 9 employed staff affected. Its annual gross income of CNY0.4million will be lost. The dam of the plant also functions for flood control and road traffic. The structure to be affected are the dam and the hydropower plant.

b. Qinren Hydropower Plant: operated in 1978 with installed capacity of 5,000 kw, will be partly inundated with 381 staff affected, including 235 employed, 53 retired and 93 out of work. About 5% of its annual gross income will be affected due to the loss of water head caused by the water rise in the river.

C3.4 Attachments to Removed Houses

38. The attachments to the removed houses in the damsite,ports and reservoir area are presented in Table 11.

Table 11: Summary of Attachments to Removed Houses

Unit Dam Ports Reservoir Area Subtotal

Hengnan Changning Hengnan Leiyang Changning A. Attachments 1.Enclosure wall m2 110.11 56.6 27.51 106.67 548.97 739.75 2. Sunning plot m2 969.43 45 462.09 3392 27.75 1233.77 5115.61

15

3. Well ea 14 2 1 2 5

4 Telephone HH 4 3 3

5 Out-door antenna HH 3 1 3 4

6Air-conditoner ea 1 0

7 Barn ea 3 1 1 2 4

8 Area of stove m2 3.24 4.97 1.77 6.74

9 No of Stove ea 26 3 8 5 16

10 Water pool m3 38.18 12.7 2.55 1288.38 1303.63

11 Excrement pool ea 2 3 33 15 51

12 Cable TV HH 2 10 12

13 Attached shop ea 11 11

14 Biogas pool ea 3 3 15 、 Housing foundation m

2 492.23 492.23

B. Scattered fruit tree

1. Citrus tree ea 305 356 10 51 722

① Adult tree ea 61 32 3 50 146 ② young tree ea 244 324 7 1 576

2. other fruit tree ea 162 1228 10 104 1504

①Adult tree ea 77 533 4 4 618 ②young tree ea 85 695 6 100 886

3. Economic tree ea 11 430 3 444

①Adult tree ea 340 1 341 ②young tree ea 11 90 2 103 4. timber tree ea 85 53 105 1660 41 141 2085 ①Adult tree ea 30 5 1380 17 141 1573 ② Young tree ea 55 53 100 280 24 512

C Tomb ea 48 2 337 9 153 549

1.With stele ea 48 2 120 26 196

2.Without stele ea 217 9 127 353

C4 Public Facilities

39. Besides the major categories of land and properties affected by the project, the

other impacts on public facilities in damsite and reservoir areas are shown in

16

Table 12.

Table 12: List of Affected Public Facilities

Description unit Dam Ports Reservoir area

Total Hengnan Changning Subtotal Hengnan Leiyang Changning

A. Agriculture facilities

1 Sand dredgihg yard ea 1 95 45 6 44 96 2 Sand stockpile ea 4 3 1 4 3 Water pool m3 199.28 74 125.28 199.28

4 Well ea 2 136 90 8 38 138 5 Siphon pipe m 281.5 214 67.5 281.5

6 Sand washing pool ea

5 3 2 5

7 Pumping well ea 7 1 6 7

8 Monument ea 2 1 1 2 B. Village-owned Small Irrigation

1 Fixed pumping location

ea 6 90 44 11 35 96

2 Temporary pumping location

ea 44 9 8 27 44

3 Irrigation channel km 5.668 0.14 13.255 11.699 0.163 1.393 19.063

4 Culvert ea 12 4 183 86 1 96 199 5 Drainage culvert ea 3 3 3

6 Water retaining wall ea 84 52 2 30 84

C. Transportation facilities

1 Class IV Road km

2 Simple Road km 1.2 1.15 2.46 2.35 0.11 4.81

3 Bridge of road ea 8 2 3 3 8 4 Culvert of road ea 13 6 4 3 13 5 Tractor’s road km 3.778 2.896 1.87 0.054 0.972 60674

6 Tractor’s bridge ea 1 12 8 4 13

7 Pedestrian road km 0.11 11.027 10.22 0.807 11.137

8 Pedestrian bridge ea

6 1 91 58 8 25 98

9 Boat ferry ea 1 1 1

10 Pedestrian ferry ea

2 72 43 3 26 74

11 Sand dock ea 6 17 12 5 23

17

12 Landing steps ea 6 182 84 32 66 188

13 Fishing dock ea 11 11 11

14 Cargo dock ea 1 11 1 10 12

D. Power line

1 110kV km 0.932 0.932 0.932

2 35kV km 0.32 0.32 .032

3 10kV km 2.2 9.203 4.082 0.841 4.28 11.403

4 380V km 6.26 1.28 18.374 12.932 0.821 4.621 25.914

5 220V km 0.463 0.343 0.12 0.463

6 Transformer ea 1 1 E. Tele-communication line

1 Power cable km 0.98 14.402 3.609 1.482 9.311 15.382

2 optical cable km 7.436 1.854 1.741 3.841 7.436

F. Large Irrigation facilities

1 Pumping station for irrigation

ea 1 1 1

2 Water-gate ea 3 24 22 2 27

3 Pumping house of water supply

ea 8 8 8

4 Water Storage tower

ea 4 4 4

5 Pumping well of pipe water

ea 2 1 1 2

40. Except the power and telecommunication line system, the restoration of the other

infrastructure, most of which are used for agricultural production, will be included in the civil work of construction as a part of protection works. A condition of these contracts will be that the infrastructure is maintained at all times during the construction period and completed before project completion.

C5 The Affected People

C5.1 The APs Impacts by Housing and Structure

41. The DMSdata indicates that 63 affected households (AHs) with a total of 290

persons will require relocation. 19 AHs with 78 persons are located in the damsite and shiplock, 4 AHs with 12 persons in the port, and 40 HHs with 200 persons in the reservoir area.

18

42. The total APs in the two small hydropower plants will be 390 persons.

43. The total APs by structural demolition (households and hydropower plants) is therefore 680 persons. C5.2 The APs by Land

44. DMS data shows that the permanent land will be aquired in 314 sub-villages of 78 villages, 13 townships/towns, with a total of 38,288 people. The land to be acquired by the project is concentrated in the reservoir area and dam-site，it is averagely shared by all the household in the subvillages, as it is poor and low-lying, suffering from flooding during raining seasons, so the people directly affected by land is equivalent to the total people, 38,288 persons in the affected subvillages.

C5.3 Total APs by the Project

45. As discussed above, the total APs affected by land and/or property acquisition

will overlap with that of housing as those 290 persons affected by house removal will also be affected by land loss. The total number of APs affected by the project will include 38,288 persons by land loss and 390 persons by business loss of small hydropower plants. Therefore the estimated number of APs is 38,678 persons.

C6 Income Loss Analysis

C6.1 Income Loss due to Land

46. The overall level of land impact will not be significant at the village level, as

average land loss of affected villages is about 2% of village owned farmland(shown in Annex 1), but it will be significant for some of the affected sub-villages. After land acquisition, there are 46 sub-villages whose farmland per capita will be less than 0.5mu，of which 38 of the 46 sub-villages are already less than 0.5mu farmland per capita prior to land acquisition. 39 sub-villages will suffer from more than 15% of farmland loss, of which 10 sub-villages will suffer from more than 30% of farmland loss. The three most severely affected sub-villages are Quanxi sub-village, Binghe village, Yunji town, Hengnan County, Tanjia sub-village, Nitan village, Jinweizhou town, Hengnan County and Gaobao sub-village, Binghe village, Yunji town, Hengnan County with 46.2%, 45.1% and 40.1% of farmland loss respectively. Details of sub-village level impacts are provided in Annex 2.

47. Table 20 in Chapter D estimates that income from agriculture production is 28%

of total household income, on average. In most sub-villages, the impact of land loss is not significant since only 8% of household incomes come from agriculture production. This situation can be attributed to the fact that over 80% of farmer

19

households in the surveyed area derive their income from off-farm activities which, on average, account for nearly two thirds of the household’s income. For the two most severely affected sub-villages with 46.2% and 45.1% of land loss respectively, the income loss due to the land loss is about 4% of the income in the affected sub-villages. Considering average 5% of farmland loss resulted from the project, the income loss due to the land loss is less than 1% of income in the affected sub-villages.

48. 99.2% of the farmland to be required by the project are located in the dam-site

and reservoir area. As the farmland is low-lying and has poor quality due to suffering form flooding during raining seasons, it is shared by all the households in the subvillages, averagely 0.05mu per capita. The income loss by land is minimum to the affected households.

C6.2 Income Loss due to Business Interruption

49. The two small hydropower plants, Qinren hydropower plant and Lijiang

hydropower plant, with 390 employees, will suffer income loss due to the project, as well as 11 attached shops to the removed residential houses with 49 members.

50. As per the calculations of the backwater results, Qinren hydropower plant on

downstream of Chongling river, a tributary of Xiangjiang river, will lose 0.3m waterhead for power generation after the reservoir is completed for water storage, therefore, 5.74% of its designed 1.3 MKV.h generated power will be decreased, so as the income.

51. As per the calculations of the backwater results, Lijiang hydropower plant on

downstream of Lijiang river, a tributary of Xiangjiang river, will totally lose its function of power generation, so as the income after the reservoir is completed for water storage,

52. 11 attached shops to the residential houses in Leiyang city will lose their

business los of CNY1,000/month during the transition of removal.

C7 Summary of Impacts

53. Table 13 provides a summary of adverse social impacts of the Project.

Table 13: Summary of Major Adverse Impacts of the Project

Land (mu) House Removal No of APs*

Farm- land

Forest land Pond

Other land

Steel-Concr (m2)

Brick-Concr (m2)

Brick-Wood (m2)

Soilhouse (m2)

Simple house (m2)

By Land

By House

By busin loss

Damsite and ship-lock area 475.13 186.2 24.8 128.02

2758.75 1955.05 261.02 964.71 2274 78

Ports 16.78 1.06 31.09 357.78 889.05 403.17 99.22 57 12 Transmission Line 0.5

Reservoir Area 1496.35 647.53 181.8 2586.67 270.17 6402.98 233.07 2.24 1671.02 36302 200 439

20

Total 1988.76 833.73 307.66 2745.78 270.17 9519.51 5181.17 666.43 2734.95 38288* 290 439 *some APs in the dam-site are overlapped with those in the reservoir area.

21

D. SOCIOECONOMIC CHARACTERISTICS

D1 Project Influence Area

54. The area influenced by the proposed Tugutang Navigation and Hydropower

Project includes Hengnan county, Changning city and Leiyang city (county level) in Hengyang city (prefecture-level), Hunan province. Hengyang city, in the middle Hunan province, is a major economic center ranking third in Hunan province with total gross domestic product (GDP) of CNY11.68 billion and foreign trade of USD785million. Among the three county/cities, Hengnan is the poorest in both rural and urban household’s income.

Table 14: Socioeconomic Status of the Counties in the Project Area

Location Popu. (10,000) %

Urban Popu

Per capita GDP

(Yuan)

Total Financial income

(CNYmillion)

Per Capita Net Income

of Rural Households

Per Capita Net Income

of Urban Households

Farmland per

Capita (Mu)

Hengnan 103.57 29.17 13334 544 6230 12591 0.93 Changning 80.33 41.04 14905 641 6158 14216 0.78 Leiyang 127.47 41.53 17756 1235 6486 14122 0.91 Hengyang City

739.8 43.15 17299 7009 6327 13911 0.92

Hunan Province

6900.2 43.20 20226 150458 4910 15084 0.86

Source: Hunan Statistics Yearbook (2009).

D2 Basic Situation of the Affected City/County

55. The proposed Tugutang project will require land and/or property in the

district/counties of Hengnan, Changning and Leiyang. Over 95% of the cultivated land will be acquired in Hengnan county and Changning city.

56. HENGNAN COUNTY: The population here is 1,035,700, of which 29.2% (302,100)

is urban population. Its total area is 2,688 km2, of which cultivated land is 56,090 ha with 52,520 ha of paddy land. The county’s GDP in 2009 was CNY12,674 million, or a per capita GDP of CNY13,334. The per capita net income of farmers was CNY6,230 in 2009, while the per capita net income of urban residents was CNY12,591. The number of poor people in 2009 was 526,900, including 101,100 urban residents and 425,800 farmers.

57. CHANGNING COUNTY: The population here is 883,300, of which 41.0% is urban population. Its total area is 2,055 km2, of which cultivated land is 37,870ha with 31,660 ha of paddy land. The GDP in 2009 was CNY11,954 million or a per capita GDP of CNY14,905. The per capita net income of urban residents in 2009 was CNY14,216, while the per capita net income of farmers was CNY6,158. The number of poor in 2009 was 37,700, including 9,700 urban residents and 28,000 farmers.

22

58. LEIYANG COUNTY: The population here is 1,274,000, of which 52.9% (529,300)

is urban population. Its total area is 2,656 km2, of which cultivated land is 61,350 ha with 44,840 ha of paddy land. The GDP in 2009 was CNY19,498 million or a per capita GDP of CNY17,756. The per capita net income of farmers was CNY6,486 in 2009; while the per capita net income of urban residents was CNY14,122. The number of poor in 2009 was 211,400, including 149,200 urban residents and 62,200 farmers. D3 Socioeconomic Survey

59. This Section presents information on the socioeconomic characteristics of the

population likely to lose land or property by the project. The information comes from the following sources:

a. HHDI field survey undertaken in parallel with the surveys for the project

Engineering Feasibility Study carried out in June-September 2009, and preparation of Preliminary Design carried out in June 2010.

b. Socioeconomic survey undertaken by the Hunan University, which is contracted by PPTA consultant team in August 2010 and carried out in September 2010.

c. Consultation and discussions of PPTA consultants with APs and the local

government during July-September 2010; and d. Township and village statistics compiled by the PPTA consultants in 2010.

D3.1 HHDI Survey (2009-2010)

60. The Feasibility Study survey was conducted by collecting information from the

Statistical Bureau, the Planning Bureau and the relevant departments, interviewing local government officials regarding local socioeconomic development and environmental projection. Detailed topics included future development industries, location of the barrage, determination of inundated area, layout of berth, minimization of fertile land occupation and resettlement, and other related issues to facilitating local economic growth and poverty alleviation.

61. The survey for preparation of preliminary design was conducted with focus on

collecting information from village leaders and the people whose land is likely to be acquired. Likely APs were consulted on resettlement, acquisition and compensation of land and houses. The HHDI survey found strong support from government at all levels and villagers in the project area. HHDI also concluded that, in most cases, sub-villages would respond to land losses by re-allocating land and that income rehabilitation should be focused on further agricultural development. This survey however did not provide any socio-economic data for

23

either affected villages or individual households.

D3.2 Socioeconomic Survey (2010)

62. This survey was undertaken by the survey team from Hunan University and supervised by PPTA consultants in September 2010. Its main objectives were: (a) to compile socioeconomic information on the APs; (b) to obtain information on the extent of the APs’ knowledge of the proposed project; and (c) to identify APs’ preferences regarding land re-allocation, house relocation and income restitution measures.

63. The survey involved collecting primary data from selected villages and

households on the proposed project area. Two survey instruments were used: (a) a village questionnaire administered to village leaders, and (b) a household questionnaire administered to individual households. The survey team included members of 13 staff from Hunan University while the county and township officials provided full cooperation.

64. A strict purposive sampling frame was designed and applied using data collected in the earlier HHDI survey and information collected by the TA survey team during a preliminary field visit. The following selection criteria were applied: (a) all villages affected by house removal; (b) strong representation of villages that will suffer high proportionate land loss; (c) an even geographic distribution along the river; (d) relative inclusion of the least well-off villages; and (e) an equal distribution of better-off, intermediate and poor households for household interview.

65. The socioeconomic survey covered 23 villages, 60% of villages affected by the proposed project. A total of 181 households, comprising 773 people or the equivalent of about 9% of the APs, were interviewed. Also, 23 village surveys were conducted. D4 Socioeconomic Characteristics of the Affected Population

66. The data collected during the socioeconomic survey has been analyzed using

the Household Livelihood Framework. The framework involves consideration of four different aspects of household socioeconomic characteristics:

a. Human Resources: demographic and education/skill characteristics;

b. Natural Resources: land, forests and access to water supply; c. Physical Resources: ownership of productive and consumer assets; and d. Financial Resources: household incomes, expenditure and access to

credit.

24

67. The following sections examine each of these in turn. An additional section

describes the survey findings in respect of APs attitudes towards the project.

D4.1 Human Resources

68. The average household size of the population surveyed was 4.65 persons (See Table15). A high proportion of households (64%) have 3 to 5 persons and there are very few small or very large families.

Table 15: Selected Demographic Characteristics

Household size Persons Hengnan Changning Leiyang TOTAL %1-2 9 4 3 16 9.60% 3-5 52 45 10 107 64.10% 6-7 17 17 3 37 22.20% 7+ 5 2 0 7 4.20% All 83 68 16 167 100% Total Pop. 388 318 70 776 - Average 4.67 4.68 4.38 4.65 - Age Distribution Age Group Hengnan Changning Leiyang Total % 70 years 21 7 8 36 4.60% Total 388 318 70 776 100%

Occupation by sex Occupation Male Female Totals % Farming only 66 136 202 39% Farming + second job 48 7 55 11%

Worker 14 2 16 3% Migrant labor 107 69 176 34% Official* 11 2 13 3% Other occupations** 39 12 51 10% All employed 285 228 513 100% % of farming only 23% 60% 39% Note: * include teachers and doctors; ** indicates managers, transport, business/shop operation, animal raising, etc. Education by sex (excl. under 7 years) Attainment Male Female Total % None 17 38 55 7.80% 1-3 yrs prim. 30 28 58 8.20% 4-6 yrs prim. 89 109 198 28.00% 1-3 yrs mid. 147 119 266 37.60% High school 67 28 95 13.40%

25

Household size Persons Hengnan Changning Leiyang TOTAL %Tertiary 20 16 36 5.10% All 370 338 708 100%

Source: Field Survey 2010.

69. Around 21% of the population is under 17 years of age, and 14% are over 60 years. The labor population (aged 18~59 year old) accounts for 64% of the sampled population.

70. Out of the population interviewed, about 40% are farmers (mostly people over 50

years of age) relying on farming only; the rest are engaged in non-agricultural occupations, including 3% government jobs, 34 migrant laborers and 11% farmers having a second non-agriculture based job. Men are more likely than women to have a second occupation or work outside agriculture which is approved by their wives. When the husband works outside the village, the wife normally stays at home to take care of the kids and parents. Overall, the survey households (excluding poverty households) have at least one member working either full-time or part-time in a non-agricultural occupation and over half of the households have a member working as migrant labor.

71. Migrant workers include people that travel outside the prefecture for employment

for seasonal or year-round employment. Local officials estimate that 10% of migrant workers are away for 1-3 months during periods when farm labor is minimal, 10% are away for 4-9 months; and 80% are away for 10-12 months (permanent employment outside or return only for harvest or festivals).

72. Over 85% of the population aged 6 years and over have at least primary

education; 56% have been to middle school but only 19% have been to high school or college. Over half of households have at least one member with high school or tertiary education. Proportionately more women have no education at all but the incidence is low and most illiterate people are elderly. School attendance amongst those below 15 years of age is almost 100%.

73. Amongst the adult population, illiteracy (no formal education) is concentrated

amongst those aged over 60 years. In contrast, most of those aged from 18 to 49 years have been to middle school or beyond. The household data suggests that most of the adult APs have completed middle school education or higher. This represents a considerable foundation on which to acquire and hone skills through vocational and technical training, or simply through off-farm opportunities.

D4.2 Natural Resources

74. All villages in the project area have sufficient water resources for agriculture with

functioning irrigation systems. Therefore, paddy land within the project affected area is more than dry farmland and forest land, which is even less than dry farmland. The households surveyed cultivated a total of over 1,057 mu land. All households had some irrigated land and some dry farmland. The average cultivated land per capita amongst the households interviewed is 1.36 mu, which is higher than the average obtained from village level data (0.88 mu). Per capita

26

farmland area is 1.63mu in Hengnan, 0.85 mu in Changning as against 2.23 mu in Leiyang. The variation in land per household is shown in the Table 16: 19% households have less than 0.5 mu per capita (in Hunan, 0.5 mu per capita is the minimum holding considered to be adequate for subsistence). Nearly one third of the households have more than 1.5 mu indicating a general land abundance and big difference of farmland holding between households in the project area.

Table 16: Natural Resources

Land Area (of all surveyed households) Land type Hengnan Changning Leiyang Total Irrigated 403 178 105 686 Dry 229 91 51 371 Total cultivated land 632 269 156 1057

% Irrigated. 64% 66% 67% 65% Orchard/tea 54 23 1 78 Forest land 151 47 20 218 Other 28 24 9 61 Per Capita Cultivated land Distribution among Households Mu/Capita Hengnan Changning Leiyang Total % 1.5 mu 34 13 10 57 34.1% ALL 83 68 16 167 100% Average-Households 1.63 0.85 2.23 1.36 Average-Villages 1.08 0.57 1.01 0.88 Cultivated Land per Capita by Household Size

Household size (persons)

Hengnan (households)

Per capita land (mu)

Changning (households)

Per capita land (mu)

Leiyang(households

Per capita land (mu)

Total (h.h.)

Per capita land (mu)

1-2 9 2.43 4 1.74 3 7.75 16 3.25 3-4 52 1.91 45 0.95 10 1.67 107 1.49 5-6 17 1.00 17 0.58 3 1.78 37 0.88 7+ 5 1.44 2 0.91 0 0 7 1.30 All 83 1.63 68 0.85 16 2.23 167 1.36

No land persons 17 26 0 43 Source: Field Survey, Hunan University, 2010.

D4.3 Physical Resources

75. Majority of houses in the affected villages are made of brick/concrete or brick/wood of average quality. Infrastructure provision is however good: all houses have access to road and electricity and only 10% have tap water into the house or yard, others have water available from hand-pressure wells. About 36% households have home telephone and on the average 2.5 cell phones are used by each family. Over 80% have sunning grounds (often concrete) for drying crops.

76. Major productive assets owned by the households include thresher, pump and

power engine. Water pump is owned by almost all of the households, threshers by three quarters of the households, and power engine by 29% of the households.

27

77. Ownership levels of household durables are indicators of the relative wealth of

selected households. TV (many are connected to the cable network) is owned by all the households with 2 or more TV sets in 1/4 of the households surveyed. VCD and motorcycle are owned in 2/3 of the households, refrigerators in 4/5 of the households, computer in 1/5 of the households, and air conditioner in 1/10 of the households.

Table 17: Physical Resources

Household Durables Productive Assets Item % of HH owning Item % of HH owning

Air conditioner 9.00 Tractor 2.40 Computer 19.20 Thresher 74.90 Home telephone 36 Power engine 28.70 Mobile phone 253.90 Harvester 2.40 Refrigerator 82.60 Pump 92.20 TV (color or B&W) 125.70 Motorcycle 67.70 VCD, Etc. 70.70 Vehicle 6.00 Bicycle 41.30

Source: Field Survey, Hunan University, 2010.

D4.4 Financial Resources

D4.4.1 Household Incomes

78. Table 18 presents the distribution of household incomes in the surveyed villages and households. The village distributions are based on average incomes and other indicators such as households experiencing food shortages, recipients of the 5-guarantee (wu-bao) program.

79. Income data provided by village leaders indicates that around half of the

households have annual net incomes above Y6,000 per capita and around 7% have annual net incomes of less than Y1,200 per capita.

Table 18: Distribution of Annual Net Income per Capita

County Township Village >8000 8000-6000 6000-3500

3500-1200

28

County Township Village >8000 8000-6000 6000-3500

3500-1200

16000

CNY

%

Source: household survey data. 2010.

D4.4.2 Income Sources

81. Villages surveyed derive their income from a wide variety of sources. The relative importance of these is shown in Table 19. The importance of migrant labor earnings is clear: it represents the most important income source in majority of

2 The wide discrepancy of average income between the village survey and household survey is mainly caused by

the overestimation of incomes from migrant worker and that the households surveyed are commonly located near county town with better road access and market access, and more opportunities of non-farming activities which resulted in higher income. But the average income of village survey total is consistent with the data from the Statistic Authorities in the project area.

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the villages. Of the 23 surveyed villages, half ranked migrant work as the first source of income. Cash crops grown vary considerably within the project area. The most common are tobacco, grape and vegetable production. Grain is of vital importance to the local economy, virtually every household cultivates it, but it is used mainly for domestic consumption rather than as a cash crop in its own right.

Table 19: Relative Importance of Income Sources in Surveyed Villages

County Township Village Grain Cash crop Animal

husbandryMigrant

labor Off-farm activities Others

Hengnan Yunji Town Xintang 3 4 5 1 2 6 Binhe 5 2 4 1 3 Liping 2 3 4 1 5 Shitang 1 4 5 2 3 Songjiang Yuebao 3 5 4 1 2 Jinpeng 1 3 3 3 1 Yaotang 4 3 5 1 2 Lijiang Longzhou 2 3 5 1 4 Tianzhou 5 3 2 1 4 Xiangyang Zhuchong 5 2 4 1 3 Pengzi 3 3 4 1 2 Liaotian Huangshi 1 4 3 2 Changning Songbei Shuanfa 1 3 4 2 5 Xintong 3 4 5 1 2 Songyu 0 0 1 2 2 Beifang 3 4 5 1 2 Dongbei 3 4 5 1 2 Shuikoushan Songyang 4 3 5 2 1 Sucai 5 2 4 3 1 Qingnian 1 5 4 3 2 Yanzhou Mashi 1 3 5 2 4 Leiyang Tanxia Shiden 1 5 3 2 4 Daheshu Xinhua 2 4 3 1 5

Note: *1=ranked first, the highest rank. Source: Field Survey, Hunan University, 2010.

82. Local off-farm income sources (e.g. local factories and business) are also frequently mentioned. Enterprises providing employment include mines, township enterprises, and ferrous alloy plants, especially in Changning city.

83. Table20 shows the different income sources in the surveyed households. In the

gross income of the sample households income from salaries of migrant workers for 53% of the sample ranked first followed by non-agricultural business income and aquatic products, accounting for 19% and 13%, respectively. Incomes from agriculture and forest contribute to 12% of the total incomes, and grain production is twice as much than forest production. This has a significant implication for income rehabilitation of affected households, i.e., the income from both grain production and cash crops accounted for about one eighth of total household gross income; if the affected households lose 20% of their land, the impact on gross income loss would be less than 2%.

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Table 20: Income Sources and Per Capita Net Income of Households Income (gross) per household in 2002

(CNY) Sample Average % Hengnan Changning Leiyang

Income from grain Production 5,164 8% 6,475 2,790 8,450 Income from cash crops 2,576 4% 1,962 3,438 2,099 Fruits 1,799 3% 2,813 916 294 Fowl and aquatic product 8,100 13% 4,336 8,337 26,623

Non-farming business 11,856 19% 9,590 15,132 9,688

Salary income 33,436 53% 40,119 27,954 22,063 Total 62,932 100% 65,296 58,567 69,215 Production costs 5,164 8% 6,475 2,790 8,450 Per capita net income (CNY/Person) 10,438 - 11,294 9,599 9,602

/1 includes costs for chemical fertilizer CNY892, seeds CNY297, pesticide CNY539, and other costs for animal husbandry 4549, and non-farm activity cost 7758. Source: Household Survey, Hunan University. 2010.

D4.4.3 Expenditure Patterns and Savings

84. Based on the data of expenditure of 181 households, each member in sample

families spent an average of CNY7,065 in 2009. As is shown in Table 20, great discrepancies in expenditure per capita exist in different areas. The average expenditure in Changning County, CNY6,524 per capita, is the lowest and is CNY1,079 less than the highest in Leiyang City.

85. The largest single item in the APs’ average consumption pattern is for basic

needs, e.g. food, clothing and housing, which represent around 65% of total consumption expenditure. The other two largest expenditures items are for medical care (11%) and children’s education (10%).

86. The per capita net income less the per capita expenditure (10,438-7,065=3,375) equals the per capita savings plus the value of self-consumed food. However, these are average figures and the situation varies considerably from household to household.

Table 21: Per Capita Expenditure of Sampled Households Hengnan Changning Leiyang Total Daily life Expenditure Total

Per capita Total

Per capita Total

Per capita

Per capita

Food 920,100 2,371 699,100 2,198 183,400 2,620 1,802,600 2,323 Clothes 203,600 525 148,400 467 23,150 331 375,150 483 Housing 509,590 1,313 1,098,650 3,455 145,510 2,079 1,753,750 2,260 Domestic electric facilities 29,890 77 20,400 64 4,900 70 55,190 71

Transportation and communication 197,840 510 137,900 434 37,130 530 372,870 481

Education & entertainment 316,500 816 156,400 492 72,100 1,030 545,000 702

Medical care 353,930 912 157,970 497 66,000 943 577,900 745 Total 2,531,450 6,524 2,418,820 7,606 532,190 7,603 5,482,460 7,065

Source: Household Survey, Hunan University. 2010.

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D4.5 Project Related Issues

87. By the time the socio-economic survey was undertaken, only a small proportion

of households was unaware of the proposed Project. The information has been widely diffused in the related regions through meetings of the local officials at various levels, local newspapers and the TV stations, investigation of communications department, and field survey conducted by HPDI. But only 15% of the interviewed people gave a positive answer of knowledge of the policy on land acquisition and resettlement, and nearly three quarters (74%) did not know about it. Table 22 provides the results in terms of all preferences mentioned.

88. The perception of surveyed households was that the project would bring

advantages in terms of assurance of electric supply, promotion of local business, development of and benefit from irrigation. The perceived negative impacts of the project are inundation of farmland (by 84% of respondents), income loss (72%), increased risk of flooding of farmland (60%), damage to infrastructure and fishery production (56%), and land acquisition or property loss (55%).

89. Table 22 sets out the views of the village committees in the sampled villages on the positive and negative impacts of the project. While village leaders saw positive impacts as outweighing negative impacts, they were open to identify the negative impacts they foresaw.

Table 22: Perceived Disadvantages and Concerns of the Project

Income decrease Crop damage Village land

loss a. Perceived disadvantage No. of household mentioned 131 125 125 % of total 158 households 83%* 79% 79% b. Do you worry about land acquisition?

No Not clear Yes

No. of respondents 65 6 88 % of total 159 respondents** 40.9% 3.8% 55.3% c. Do you know land acquisition and resettlement policy?

No Not clear Yes

No. of respondents 117 19 23 % of total 159 respondents** 73.6% 11.9% 14.5% d. Do you know the procedure of complaint readdress?

No Not clear Yes

No. of respondents 114 23 % of total 157 respondents** 73% 27% * Of those mentioning a disadvantage, multi-choices, thus it is not necessary to add to 100% of 158 households. ** indicate more efforts should be paid for information disclosure. Source: Household surveys, 2010.

Table 23: Anticipated Impacts of Project on Village—Village Survey

Advantage Ensure Lower Promote local More safe Benefit Promote Improve

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power supply

power price for

production

business development

navigation irrigation flood control

fishery

Respondents 14 7 11 8 11 9 5 %* of 55 villages 56% 28% 44% 32% 44% 36% 20%

Disadvantage Land loss House

flooded More flood

some where

Paddy land into water

pond Infrastructure

flooded

Negative impact

on fishery

Income loss

Respondents 21 4 15 15 14 14 18 %* of 55 villages 84% 18% 60% 60% 56% 56% 72% * Multi-choices for each respondent, thus not necessary add to 100%. Source: Village Surveys. 2010.

90. Individual households were also interviewed about their preferences on measures to mitigate the adverse impacts on productive land and/or housing losses. Table 24 summarizes the responses of the households. In short, their responses were:

a. 86% of sample households preferred that the land compensation fee be

distributed directly to those households losing land that they are now farming under user rights contracts. 30% showed their willingness of land redistribution among all members of the land owning group; 12% preferred the aqua-product development for income rehabilitation. 13% of respondents intended to have new land reclaimed.

b. On the other hand, if compensation were to be paid directly to those losing land or property, most of the respondents prefer to invest in medical care, followed by children’s education, housing condition improvement, and small businesses. A small proportion (16%) said that they would use the money for investment.

c. If their houses were demolished then 86% of respondents would like to

build a new house close to their existing home or within the same village. Only 14% of respondents would like to move to a suitable site outside their village land.

d. On the option of building new houses, the most preferred option is Self-

building with neighbor’s help, followed by getting the house built by the local government, built by IA and contractor.

Table 24: Sampled AP Preferences for Mitigation Measures

Item Hengnan Changning Leiyang Total % AP preferred Strategy to Mitigate Loss of Farmland and Income a. Land redistribution within Group 35 10 2 47 29.6 b. New land reclamation 13 5 3 21 13.2 c. Reasonable compensation 60 61 15 136 85.5

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d. Expanding aqua-product production

18 24 3 45 28.3

Preferred Use of Compensation Paid Directly to APs* a. For children’s education 29 33 4 66 41.8 b. Medical care 31 34 10 75 47.5 c. Operating small business 29 27 6 62 39.2 d. Improve housing conditions 30 22 5 57 36.1 e. Making investment 17 7 2 26 16.5 f. Miscellaneous items 8 10 3 21 13.3 AP preferred Site for House Relocation a. Within the same village 30 9 4 43 86 b. Suitable site outside AP’s village land

3 1 3 7 14

Preferred method of building new house a. Self-build with neighbor’s help 24 7 4 35 76 b. contracted to construction co. 1 2 0 3 7 c. Built by government 3 0 2 5 11 d. Built by IA 3 0 0 3 7 * Since the topic is a multiple-choice question, it is not necessary that the percentage can be added up to 100%, but shows respondents’ preference of total 657 households on the single sub-topic. Source: Household Survey. 2010.

D5 Vulnerable Groups

D5.1 The Poor

91. Within the directly affected counties/city in Hengnan, Changning and Leiyang,

there are a total of 155,589 rural poor and 36,211 urban poor. These figures are equivalent to 7.8% and 3.1% of the total rural population and urban population respectively. Details are shown in Table 25.

Table 25: Poverty Population in Project Affected Area

Items Directly affected county/city Hengnan Leiyang Changning Sub-total

Total Population 1023500 1259700 862900 3146100 Rural population 726,100 749,900 514,800 1,990,800 Urban Population 297,400 509,800 348,100 1,155,300 Rural MLSS (Yuan/month) 60 60 57 57-60 Rural Poor population under MLSS support

48332 60214 39475 148,021

Rural Poverty below MLSS incidence % 6.7 8 7.7 7.4 Rural poor above MLSS but below poverty line*

2223** 1690** 3655** 7568

Sub total of rural poor 50555 61904 43130 155589 Rural Poverty incidence % 7.0 8.3 8.4 7.8 Urban MLSS (Yuan/month) 180 210 180 180-210 Urban Poor population under MLSS subsidy 11951 13429 10831 36,211 Urban poor incidence % 4.0 2.6 3.1 3.1 * Rural Poverty Line: CNY1196. **It is estimated that poverty incident rate in poverty villages are 20% in addition to the poor below MLSS.

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Source: Poverty and social assessment.

92. The results (Table 26) from the surveyed villages suggest that there are 2,195 rural poor in 53 villages, accounting for 11.9% of rural population.

93. In villages surveyed in the rural area, leaders attributed the poverty of individual

households to illness, age and number of children going to school. In the household survey, poor households gave lack of land, age, disability or sickness as the main causes of their poverty.

94. Village leaders interviewed in the poor villages attributed the relative poverty of their villages to a combination of causes, including their remote location from county center, no specialized cash crops production but grain, less land and high transport costs. Agriculture is the mainstay as there are no developed industries.

Table 26: Rural Poor in Surveyed villages

County/ city

Township/ Town Village HH

Total popu Poor HH

Rural poor

Hengnan Songjian Yuebao 304 1270 12 37

Jinyu 291 1202 11 27

Manjin 267 1205 10 26

Yaotang 328 1255

Xiaoxiang 274 978 9 26

Songzhu 337 1427 9 20

Huangtang 368 1767

Jinpeng 249 1070 7 23

Yuji Binghe 298 1119 14 39

Shitang 251 1131 8 26

Liping 367 1338

Gaobao 298 1400 20 95

Xiaobaizhu 309 1086 9 29

Xintang 418 1480 14 32

Baohe 309 1350 10 23

Lijiang Qingtian 228 948 8 27

Tianzhou 341 1407 20 46

Baizhou 455 1688 42 145

Liyu 348 1388 28 65

Qishan 369 1224 15 34

Xiangyang Zhuchong 234 1240 12 49

Xiangjiang 260 980 16 64

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County/ city

Township/ Town Village HH

Total popu Poor HH

Rural poor

Yushi 180 700 18 30

Zhaoyang 280 1234 20 55

Pengzi 280 1100 20 68

Liantian Hekou 415 1707

Huangshi 375 1550 11 37

Changning Shuikoushan Songyang 396 1442 15 35

Qingnian 662 2415

Songbei Dayu 528 1994 95 95

Zishan 239 925 40 40

Yanxing 314 1245 47 49

Dushi 317 1695 42 58

Qingshui 461 1540 23

Zhubo 598 2258 0

Shuanglin 193 1012 40

Xintong 396 1480 44

Shuangfa 374 1709 61 27

Beifang Dongbai 321 1498 44 46

Shuangbai 320 1230 43 147

Beifang 548 1918 66 68

Daxin 196 861 54 54

Wansong 470 1880 30

Yanzhou Mashi 318 1202 Shangxin 253 960

Leiyang Daheshu Xinhua 548 1721 58 130

Qunle 447 1848 46 90

Yanjiang 500 2192 14 47

Ronggong 385 1376 35 87

Aiqun 310 1650 28 58

Tanxia Shiden 552 2450 32 64

Qujia 358 1520 35 77

Total 53 18437 74265 1235 2195

D5.2 Minorities

95. There is no ethnic minority group in the project direct impact counties.

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D6 Gender Aspects

96. In the project affected area, females account for almost 50% of the total

population and work force. Most of the Project benefits accruing in the project area will therefore benefit males and females more or less equally. However in view of the Project’s potential role in preventing an increase in health problems and the inconveniences associated with disruptions to domestic water supplies, the Project will have added benefits to women.

97. In the rural areas, two factors associated with the Project are likely to increase

the role of women in farming activities: (i) many men in the surrounding villages indicated that they are keen to take advantage of employment opportunities during Project construction and after construction with the stimulation of local economic development; and (ii) in resettlement areas, villagers expressed concerns during the focus group discussions (FGDs) of the impact of the Project on their livelihood activities – men talked of responding to these potential changes by seeking off-farm work as migrant labor or strengthen off-farming business in the project industry park area.

98. If the number of the men seeking off-farm employment does increase, this will increase the women’s share of the farm workload. According to the village leaders interviewed, when a woman’s husband works outside the village or engages in a non-agricultural job for months at a time, the woman and older children in the family assume most of the responsibilities for cultivating the land and caring for the animals.

99. Any negative impact of this increased workload on women may well be offset by increased household income, given that it is usually the woman’s responsibility to budget household expenditure. However, this potential expansion of the role of women in farming reinforces the need for women to be fully integrated into any income restoration program established for resettled households.

100. Although off-farm labor is undertaken by significantly more men than women, some young women from villages also undertake casual work. Female migrant workers are mainly employed as hotel waitresses in towns and cities. They also run small businesses in the wholesale markets and street shops, or do child care and/or domestic work. Women in the villages are keen to work outside the village, and want assistance from the Women’s Federation and Labor Bureau to enter the labor force. The stimulation of local industrial development by the project is anticipated to have additional benefits for women.

101. Moreover, although it is estimated that approximately 70% of the construction work will require unskilled labor, this work is likely to involve heavy digging and carrying. It has been suggested that it will not be suitable for women and that it would therefore be unrealistic to set a target for women’s employment in unskilled work. Nonetheless, the PMO believes it would be realistic for 30% of

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