1 - World Bank



The World Bank Financed Taiyuan Urban Transport Project

Resettlement Action Plan

The World Bank Financed Taiyuan Urban Transport Project

Resettlement Office

July 2008

Contents

Contents i

Contents of Tables v

1.Project Overview 1

1.1 Brief Introduction to the Project 1

1.2 linked Projects 2

1.3 Regions Benefiting from the Project 3

1.4 Regions Affected by the Project 5

1.5 Measures to Minimize Resettlement 7

1.5.1 Measures adopted in the project design stage 7

1.5.2 Measures to be adopted during implementation 10

1.5.3 Measures to be adopted during the construction 10

1.6 Preparation and Progress of the Project 11

1.7 Ownership of the Project 12

1.8 Implementation Schedule of the Project 12

1.9 Approval for Land Use and Relocation 12

1.10 Laws Related to Compensation Rate 12

2.Project Impact Analysis 14

2.1 Definition of Project Impact 14

2.2 Project Socioeconomic Survey 16

2.3 Impact of Land Acquisition and Relocation 18

2.4 Impact of Land Acquisition for the Project 21

2.4.1 Acquisition of rural collectively-owned land 21

2.4.2 Acquisition of state-owned land 23

2.5 Relocation 24

2.5.1 Relocation of private houses 24

2.5.2 Relocation of buildings of enterprises and institutions 25

2.5.3 Illegal buildings affected by the project 26

2.5.4 Affected attachments 26

2.5.5 Affected shops 27

2.5.6 Affected smallware market 27

2.6 Affected Vulnerable Groups 27

2.6.1 Determination of affected vulnerable groups 27

2.6.2 Affected families of vulnerable groups 28

2.7 Affected Infrastructures 28

2.8 Impact of Land Acquisition and Relocation for linked Projects 29

2.8.1 Impact of land acquisition for linked projects 29

2.8.2 Impact of relocation for linked projects 29

3. Analysis on Socioeconomic Impact of Project 32

3.1 General Introduction to Socioeconomic Development of the Regions Affected by the Project 32

3.2 General Situation of Affected Villages 35

3.3 Analysis on Basic Information of Affected Families 38

3.4 Analysis on Family Information of Affected Vulnerable Groups 41

3.5 Impact on Ethnic Minorities and Social Gender 41

4. Law Framework and Policies 43

4.1 Main Law Framework and Policies of Resettlement 43

4.1.1 Relevant laws and provisions enacted By the Central Government 43

4.1.2 Statues and policies enacted by the People’s Government of Shanxi Province and related departments 43

4.1.3 Statues and policies enacted by the People’s Government of Taiyuan City and related departments 44

4.1.4 The World Bank’s policies on involuntary resettlement 44

4.2 Summary of Main Law Framework and Policies 44

4.2.1 Summary of relevant national law framework 44

4.2.2 Summary of relevant statues and policies in Shanxi Province 47

4.2.3 Summary of relevant statues and policies in Taiyuan City 58

4.2.4 The World Bank’s relevant policies on involuntary resettlement 59

4.3 Polices on Resettlement for This Project 62

4.3.1 Methods for the acquisition of state-owned land 62

4.3.2 Compensation methods for the acquisition of collectively-owned land 62

4.3.3 Compensation and resettlement for the relocation on state-owned land 63

4.3.3.1 Monetary compensation 63

4.3.3.2 Exchange of property right 64

4.3.4 Compensation and resettlement for the relocation on collectively-owned land 65

4.3.4.1 Monetary resettlement 66

4.3.4.2 Exchange of property right 66

4.3.5 Resettlement of affected houses and shops of enterprises and institutions 67

4.3.6 Moving subsidy and transition subsidy 68

4.3.7 Resettlement of vulnerable groups 69

4.3.8 Resettlement for the relocation of illegal structures 69

4.3.9 Compensation for affected infrastructures and attachments to the ground 70

4.4 Policies on the Resettlement of linked projects 71

5. Resettlement Compensation Rates 72

5.1 Basis of Establishment of Compensation Rates 72

5.1.1 Basis of establishment of land compensation rates 72

5.1.2 Basis of establishment of compensation rates for buildings 74

5.1.3 Basis of establishment of compensation rates of other kinds 77

5.2 Compensation Rates 77

5.2.1 Compensation rates for land acquisition 78

5.2.2 Compensation rates for relocated houses 78

5.2.3 Rates for moving subsidy and transition subsidy 79

5.2.4 Compensation rates for affected infrastructures and attachments to the ground 80

6.Resettlement and Rehabilitation 82

6.1 Objective, Mode and Principle of the Resettlement and Rehabilitation 82

6.1.1 Objective of the resettlement and rehabilitation 82

6.1.2 Mode of the resettlement and rehabilitation 82

6.1.3 Principle of the resettlement and rehabilitation 83

6.2 Resettlement for Relocated Households 84

6.3 Rehabilitation of Peasants Affected by Land Acquisition 87

6.4 Rehabilitation of Affected Enterprises and Institutions 88

6.4.1 Compensation and rehabilitation of enterprises whose production and business are affected 88

6.4.2 Resettlement and rehabilitation of other enterprises and institutions 92

6.4.3 Reconstruction of affected schools 95

6.4.4 Resettlement and rehabilitation of affected shops 97

6.5 Rehabilitation of Professional Facilities 99

6.6 Resettlement and Rehabilitation of Affected Vulnerable Groups 99

6.7 Schedule of Resettlement and Rehabilitation 100

7.Budget and Management of Resettlement Fund 102

7.1 Constitution of Resettlement Fund 102

7.1.1 Land compensation 102

7.1.2 Compensation for relocation 102

7.1.3 Compensation for attachments to the ground and common facilities 103

7.1.4 Management costs of resettlement 103

7.1.5 Other costs and contingency 103

7.2 Budget of Resettlement Fund 103

7.3 Allocation and Flow of Resettlement Funds 105

7.3.1 Allocation of resettlement funds 105

7.3.2 Sources and flow of resettlement funds 106

7.4 Payment, Management and Monitoring of Resettlement Funds 106

7.4.1 Payment of resettlement funds 106

7.4.2 Management and monitoring of resettlement funds 107

8. Organizational Framework of Resettlement 109

8.1 Organizational Establishment 109

8.2 Responsibilities of All Organizations 110

8.2.1 Project Leading Group Office 110

8.2.2 Project Resettlement Office 110

8.2.3 Resettlement Offices of Districts 111

8.2.4 Resettlement Office of Towns (Offices) 111

8.2.5 Resettlement Group of Villages (Communities) 112

8.2.6 Design Institute 112

8.2.7 Independent Monitoring Organization 112

8.3 Personnel and Equipments of Resettlement Organizations at all Levels 113

8.4 Measures for the Strengthening of Organizational Capacity 114

8.5 Plans for the Strengthening of Organizational Capacity in the Future 116

9.Public Participation and Consultation 118

9.1 Activities Carried out up to Now 118

9.2 Feedback on Public Participation and Consultation 123

9.3 Next Consultation Plan with Affected Population 126

9.4 Consultation Modes of Affected Population during Project Implementation Period 128

9.5 Policy Disclosure and Resettlement Information Booklet 128

10. Complaint and Appeal 130

10.1 Means of Collecting Dissatisfaction and Complaints 130

10.2 Procedure of Complaining and Appealing 130

10.3 The Principles of Handling Complaints 131

10.4 Contents of the Reply and Ways of Replying to Complaints 132

10.4.1 Contents of the reply 132

10.4.2 Replying to complaints 132

10.5 Record of Complaints and Appeals and Relevant Feedback 132

10.6 Contact Information for Expressing Complaints and Appeals 133

11. Resettlement Monitoring 135

11.1 Internal Monitoring 135

11.1.1 Purpose and principles 135

11.1.2 Procedure of internal monitoring 136

11.1.3 Contents of internal monitoring 137

11.1.4 Means of internal monitoring 139

11.1.5 Internal monitoring agency and personnel assignment 142

11.1.6 Assignments of internal monitoring agency 142

11.1.7 Reporting period of internal monitoring 143

11.2 Independent Monitoring 143

11.2.1 Purpose of independent monitoring 144

11.2.2 Independent monitoring organization and monitoring personnel 144

11.2.3 Assignments of the independent monitoring organization 145

11.2.4 Means and procedures of independent monitoring 146

11.2.5 Contents of independent monitoring 147

11.2.6 Reporting system of independent monitoring 151

12.Matrix of Entitlement 153

Attached Table 1 Quantity of private houses affected by relocation for Taiyuan Urban Transport Project 157

Attached Table 2 Relocated households and population living in dormitories of enterprises and institutions 158

Attached Table 3 Area and structures of houses of enterprises and institutions to be relocated for Taiyuan Urban Transport Project 160

Attached Table 4 illegal buildings of private households 167

Attached Table 5 Illegal buildings of enterprises and institutions(m2) 168

Attached Table 6 Affected attachments of private family households 170

Attached Table 7 Affected attachements of enterprises and institutions 171

Attached Table 8 Shops affected by Taiyuan Urban Transport Project 172

Attached Table 9 List of affected families of vulnerable groups 178

Attachment 1: 181

Resettlement Comparison between Direct Line and Circuitous Line of North Mid Ring Road 181

Attachment 2: 186

Methods for the Use and Management of the Funds for Vulnerable Groups Affected by the Resettlement for the World Bank Financed Taiyuan Urban Transport Project 186

Attachment 3: 190

Resettlement Information Booklet for the World Bank Financed Taiyuan Urban Transport Project 190

Contents of Tables

Table 1-1 Composition of the World Bank Financed Taiyuan Urban Transport Project 1

Table 1-2 Areas affected by Taiyuan Urban Transport Project 5

Table 1-3 Comparison of line schemes for North Mid Ring Road 8

Table 1-4 Schedule for the preparation and implementation of the project 12

Table 1-5 Schedule for applying for approval for land use and relocation 12

Table2-1 Summary of the impacts of land acquisition and relocation of Taiyuan Urban Transport Project 20

Table 2-2 Types and quantity of collectively-owned land requisitioned for Taiyuan Urban Transport Project 22

Table 2-3 Buildings of enterprises and institutions to be relocated 25

Table 2-4 Distribution of affected vulnerable groups 28

Table 2-5 Types and quantities of affected infrastructures 29

Table 2-6 Quantities of buildings of enterprises and institutions to be relocated for linked projects 30

Table 2-7 Shops affected by linked projects 31

Table 3-1 General situation of socioeconomic development of the regions affected by Taiyuan Urban Transport Project (2006) 35

Table 3-2 General situation of villages affected by land acquisition and relocation for Taiyuan Urban Transport Project 37

Table 3-3 Basic characteristics of displaced persons of Taiyuan Urban Transport Project 38

Table 3-4 Dwelling situation of affected families of Taiyuan Urban Transport Project 39

Table 3-5 Incomes of affected families 40

Table 3-6 Proportion of dwelling spaces of affected families 41

Table 5-1 Compensation rates for land acquisition calculated as per the highest times (30 times) of average annual output value 73

Table 5-2 Compensation rates of typical projects relocation in Taiyuan 75

Table 5-3 Base prices of various lands of Taiyuan 76

Table 5-4 Compensation prices of dwelling houses on state-owned land 78

Table 5-5 Compensation prices of non-domestic houses on state-owned land 79

Table 5-6 Compensation prices of houses on collectively-owned land 79

Table 6-1 Construction plan of resettlement spots of Taiyuan urban transport project 85

Table 6-2 Resettlement and recovery methods for enterprises whose production and business operations are affected 89

Table 6-3 Resettlement and rehabilitation methods of affected enterprises and institutions 92

Table 6-4 Schedule of resettlement activities 101

Table 7-1 Allocation object of resettlement funds 105

Table 8-1 Member list of all levels of resettlement offices for Taiyuan Urban Transport Project 113

Table 8-2 Personnel placement of all levels of resettlement organizations 114

Table 8-3 Equipments of all levels of resettlement organizations 114

Table 8-4 Operational training plan table of resettlement personnel 115

Table 8-5 Next operational training plan table of resettlement organizations 117

Table 9-1 Main activities of resettlement information disclosure and consultation 118

Table 9-2 Summarized table of public opinions and advices 120

Table 9-3 Feedback on public participation and consultation of World Bank Financed Taiyuan Urban Transport Project 123

Table 9-4 Time arrangement for consultative meetings with displaced persons 127

Table 10-1 Record form of complaints and appeals on the resettlement of the World Bank Financed Taiyuan Urban Transport Project 133

Table 10-2 Information of the machinery and persons for receiving the complaints and appeals of displaced persons 134

Table 11-1 Land acquisition and resettlement progress 141

Table 11-2 Progress of using the compensation fund 142

Table 11-3 Personnel of internal monitoring in resettlement agency 142

Table 11-4 Personnel of the Independent Monitoring Organization of the World Bank Financed Taiyuan Urban Transport Project 145

Table 1 Comparison of affected families, persons and building areas between two lines 181

Table 2 Compensation funds for private families affected by relocation in two lines 182

Table 3 Comparison of area of relocated enterprises and institutions between two lines 182

Table 4 Comparison of compensation funds for affected enterprises and institutions between two lines 183

Table 5 Comparison on the impact and cost of the land acquisition for two different lines 184

Table 6 Comparison on resettlement influences and cost between two lines 184

Table 7 Comparison conclusions of two line programs for North Mid Ring 185

1.Project Overview

1.1 Brief Introduction to the Project

The World Bank Financed Taiyuan Urban Transport Project includes the following four subprojects: improvement or road network, public transport, traffic management and road safety, and strengthening of organizations.

The road network improvement subproject includes the construction of north middle ring road and Taihang Road.

Traffic management and road safety subproject include the expansion of traffic signal system and improvement of traffic arrangement at some sections and junctions, facilities for non-motor vehicles and pedestrians, traffic guidance system, education on traffic law and road safety, technological research and training, etc.

The subproject of public transport includes one exclusive bus lane from the south to the north, construction of harbor-like bus stops at main lines, construction of two bus parking & maintenance lots in Nanhan and Beiying, construction of four initial and terminal Stations including Helaowan, Beiyan, Yingxin Street and Wohushan, intelligent dispatching system, etc.

Technological research and consulting carried out for part of the abovementioned 3 subprojects constitutes the 4th subproject of this project.

Table 1-1 Composition of the World Bank Financed Taiyuan Urban Transport Project

|No. |Subproject name |Project description |land |relocation |

| | | |acquisition | |

|I |Improvement of road | | | |

| |network | | | |

|1 |North Mid Ring Road |Urban speedy way, with bi-directional 6 lanes for main lines, |√ |Χ |

| |North Mid Ring Street|bi-directional 4 lanes for subsidiary road, construction of | | |

| | |non-motor vehicle road. Starting from the junction of Waliu Road | | |

| | |and North Mid Ring Road Street and ending at the junction of | | |

| | |Taihang Road and Shenglidong Street, totaling 9.95 km. | | |

|2 |Taihang Road |Urban main trunk road, with planned red line of 50 m in width. |√ |Χ |

| | |Bi-directional 8 lanes for main lines, some parts with subsidiary | | |

| | |roads and non-motor vehicle road. Starting from the junction of | | |

| | |Taihang Road and Shenglidong Street, and ending at the junction of | | |

| | |Taihang Road and Xutan East Street, totaling 10.3 km. | | |

|II |Improvement of public| | | |

| |transport | | | |

|1 |Public transport | | | |

| |priority | | | |

|1 |Pingyang Road- |Pingyang Road- Xinjian Road exclusive bus lane to be listed in the |Χ |Χ |

| |Xinjian Road |north-south road planning (the project includes improving and | | |

| |exclusive bus lane |reconstructing road facilities, setting up signs and marking lines,| | |

| | |reconstructing bus stops and signals). It starts from Shengli | | |

| | |Street to Xuefu Street, totaling 11.4 km. | | |

|2 |Bus parking lot and |Two depots: Beiying and Nanhan |√ |√ |

| |maintenance lot | | | |

|3 |Initial and terminal |It is planned to build 4 initial and terminal Stations in Beiyan, |√ |√ |

| |Stations |Zoo, Helao Wan, and Yingxin Street. | | |

|4 |Intelligent bus |It is planned to construct the intelligent dispatching system in |Χ |Χ |

| |dispatching system |three stages, including inquiry system, bus-dispatching system, | | |

| | |vehicle on-board data transmission system. | | |

|5 |Technological |Research on the optimizing of public transport network and public |Χ |Χ |

| |research |transport priority; | | |

| | |Research on computer-based management and operation of public | | |

| | |transport; | | |

| | |Reformation of public transport system | | |

|III |Traffic management | |Χ |Χ |

| |and road safety | | | |

|IV |Strengthening of | |Χ |Χ |

| |organization | | | |

|V |Construction of |Five plots of land with total area of 59.61ha is requisitioned |√ |√ |

| |resettlement spot |additionally for building resettlement houses and resettling the | | |

| | |displaced persons affected by the project | | |

Source: Proposal for the World Bank Financed Urban Transport Project, Leading Group Office of the World Bank Financed Taiyuan Urban Transport Project, October 2006

1.2 Linked Projects

As is mentioned in the 4th article of Operational Policies for Involuntary Resettlement, the policy applies to all components of the project that result in involuntary resettlement, regardless of the source of financing. It also applies to other activities resulting in involuntary resettlement, that in the judgment of the Bank, are (a) directly and significantly related to the Bank-assisted project, (b) necessary to achieve its objectives as set forth in the project documents; and (c) carried out, or planned to be carried out, contemporaneously with the project.

According to the abovementioned principles, there are three linked projects: 1) extension line of Waliu Road connected with North Mid Ring Road; 2) extension line of Taihang Road connected with South Mid ring Road; 3) the bridge crossing Fenhe River.

Waliu Road and the North Mid Ring Road is 1.4 km away from each other. The construction of extension line of Waliu Road to the north can connect Waliu Road and North Mid Ring Road, and bring into full play the function of North Mid Ring Road as the urban expressway. In the World Bank financed project under planning, Taihang Road intersects Xutan East Street at Shenglidong Street towards the south, totaling 10.3 km, extending the Taihang Road northward for 1.7 km, connecting with North Mid Ring Road, forming a complete urban trunk road network, which can bring the function of Taihang Road as urban trunk road into full play. The bridge crossing Fenhe River itself is one section of North Mid Ring Road and connects two secons of North Mid Ring on the east and west banks of Fenhe River.

Considering that the abovementioned three subprojects are closely connected to this project, this Resettlement Action Plan list these three subprojects in the related projects of the World Bank Financed Urban Transport Project and brings the resettlement for them into this plan.

1.3 Regions Benefiting from the Project

The implementation of the World Bank Financed Urban Transport Project will optimize the transport system of Taiyuan city, the political, economical, cultural and transport center of Shanxi Province, make it more convenient for the outing of urban inhabitants, and enhance the functions of Taiyuan City in an all round way.

Great progresses have been made in city construction and transport in the 50 years since the founding of the P.R. China. But there are still some problems with urban transport that do not meet the demand for the development of the city. These problems are:

First, urban transport lags behind the development of the city: (1) the development of the city from the north to the south lacks the support of a backbone road; (2) the development of the east part of the city lacks the support of road network; (3) the city itself is still of a multi-circle structure with a single center, with many concentric circles, which result in the serious traffic problems in the central area. Second, the demand and supply of transport is imbalanced: (1) the capacity of road network in the city center cannot adapt to the fast development trend of motor vehicles; (2) the road network in the peripheral region still needs improvement; it is urgently needed to guide the development of land through construction of road network; (3) the traffic is more and more crowded in roads crossing Fen River; (4) static transport is seriously lagging behind.

Third, public transport is developing at a low speed: (1) the buses for public transportation is old, the distribution of bus stops and bus stations are not reasonable, the measures for public transport priority are not enough, it takes a long time for passengers to walk to the bus stops, and to wait for the buses, and the distance of travel for most passengers doesn’t reach the ideal service distance for buses. All these lead to the low service level and the unpopularity of public transportation, which only account for 11% for all the outings of the citizens. (2) The road network is imperfect, which reduce the coverage of service. The public transportation in Taiyuan (excluding taxi) only has regular over-ground roads. There is no systematic planning for public transport lines. The lines are excessively concentrated in the trunk roads in the center area. (3) The facilities for bus stops are not reasonably arranged, the development of which is restricted by policies and insufficiency of fund. The maintenance for buses is of low level. All these lead to the small number and low quality of buses. Averagely, each 10,000 permanent population in the urban area only have 6.8 buses. The bus stations of different kinds only cover an area of about 356,400 ㎡, which could only meet the demand of parking for only 1, 153 buses.

Fourth, there are not enough routes for freight: (1) the flow of freight traffic brings huge pressure to central areas; (2) there is a lack of highly sufficient ways form the peripheral supply depots of goods to the city center.

Fifth, the traffic management level is low: (1) the unidirectional transport is lack of systematic planning; (2) the land for junctions is not enough; (3) the markings are not timely renewed; (4) slow traffic is not attached enough attention to, and the transport facilities are simple and unsophisticated, and small in number; (5) the intelligent facilities are of low levels; (6) the management of parking of buses need improvement.

Sixth, the connection to the outside is insufficient: (1) the roads are of low radiating capacity to the outside; (2) the connection with the outside transport should be improved.

Considering the above-mentioned problems, the authority of Taiyuan city conceived the idea of improving the transport with the loan from the World Bank, and has made an overall plan for the project (including 4 subprojects) after consultation with the experts of the World Bank. The following can be realized through the World Bank Financed Taiyuan Urban Transport Project: (1) the construction of North Ring Road and Taihang Road will reduce the pressure on the central area, and reduce traffic jams in the central area; (2) the construction of the two roads would promote the development of the east and north parts of the city; (3) it will alleviate the crowded traffic of the north part of the city that crosses the Fen River. (4) It will increase the number of people taking buses and improve the transport conditions. (5) It will facilitate the outing of vulnerable groups, improving the traffic management and improving the efficiency of roads.

1.4 Regions Affected by the Project

The impact of the World Bank Financed Taiyuan Urban Transport Project is limited within Taiyuan City. The road network improvement project and public transport improvement project involve Bolin District, Jiancaoping District, Xinghualing District, Yingze District, Xiaodian District and Jinyuan District. The road network improvement project that leads to most relocation involves 5 districts, 10 sub-district offices (townships), and 31 villages (communities)。

For the project of public transport, four bus stations and two parking and maintenance lost are distributed in five districts, six streets and six villages.

Among related project, the relocation for the extension line of Taihang Road involves Xiaodian District, Beiying Sub-district Office, two villages (Xudong Village and Xutan Village) and a community (Community of Chinese Academy of Agricultural Sciences); the extension of Waliu Road involves Dongshe Village of Dongshe Community in Wanbolin District.

The impact scope of the resettlement of Taiyuan Urban Transport Project is as shown in Table 1-2.

Table 1-2 Areas affected by Taiyuan Urban Transport Project

|Lines |Affected districts |Sub-district offices(Town) |Communities (Villages) |

|North Mid Ring Road |Wanbolin District |Wanbolin Sub-district Office |Jinjixi Community |

|North Mid Ring Road |Wanbolin District |Wanbolin Sub-district Office |Anguang Community |

|North Mid Ring Road |Jiancaoping District |Huifeng Sub-district Office |Huifeng Community |

|North Mid Ring Road |Jiancaoping District |Huifeng Sub-district Office |Xiliu Village |

|North Mid Ring Road |Jiancaoping District |Huifeng Sub-district Office |Xiaodongliu Village |

|North Mid Ring Road |Jiancaoping District |Huifeng Sub-district Office |Dadongliu Village |

|North Mid Ring Road |Jiancaoping District |Gucheng Sub-district Office |Senyuannan Community |

|North Mid Ring Road |Xinghualing District |Julun Sub-district Office |Xishengli Community |

|North Mid Ring Road |Xinghualing District |Julun Sub-district Office |Shangbeiguan Community |

|North Mid Ring Road |Xinghualing District |Dunhuafang Sub-district Office|Jin’anxi Street Community |

|North Mid Ring Road |Xinghualing District |Dunhuafang Sub-district Office|Kuangji Community |

|North Mid Ring Road |Xinghualing District |Dunhuafang Sub-district Office|Wohushan Community |

|North Mid Ring Road |Xinghualing District |Yangjiayu Sub-district Office |Xiangtang Village |

|Taihang Road |Xinghualing District |Yangjiayu Sub-district Office |Xiaozaogou Village |

|Taihang Road |Xinghualing District |Yangjiayu Sub-district Office |Daochanggou Village |

|Taihang Road |Xinghualing District |Yangjiayu Sub-district Office |Baergou Village |

|Taihang Road |Xinghualing District |Yangjiayu Sub-district Office |Sanershu Village |

|Taihang Road |Xinghualing District |Xinjie Sub-district Office |Xincun Community |

|Taihang Road |Xinghualing District |Xinjie Sub-district Office |Taihang Road Community |

|Taihang Road |Xinghualing District |Dadongguan Sub-district Office|Xinbei Community |

|Taihang Road |Xinghualing District |Dadongguan Sub-district Office|Xinnan Community |

|Taihang Road |Xinghualing District |Dadongguan Sub-district Office|Honggou Community |

|Taihang Road |Xinghualing District |Dadongguan Sub-district Office|Wulongkou Community |

|Taihang Road |Xinghualing District |Dadongguan Sub-district Office|Bailong Garden Community |

|Taihang Road |Yingze District |Haozhuang Town |Haojiagou Village |

|Taihang Road |Yingze District |Haozhuang Town |Haozhuang Village |

|Taihang Road |Yingze District |Haozhuang Town |Wangjiafeng Village |

|Taihang Road |Yingze District |Haozhuang Town |Dongtaibao Village |

|Taihang Road |Yingze District |Haozhuang Town |Dianpo Village |

|Taihang Road |Xiaodian District |Beiying Sub-district Office |Longbao Village |

|Taihang Road |Xiaodian District |Beiying Sub-district Office |Xudong Village |

|Taihang Road |Xiaodian District |Beiying Sub-district Office |Xudong Village |

|Extension line of |Wanbolin |Dongshe |Dongshe Village |

|Waliu Road | | | |

|Extension line of |Xiaodian District |Beiying |Xudong Village, Xutan Village, Community of |

|Taihang Road | | |Chinese Academy of Agricultural Sciences |

|Helaowan Initial and |Wanbolin District |Duerping Sub-district Office |Helaowan Village |

|Terminal Station | | | |

|Beiyan Initial and |Jinyuan District |Yijing Sub-district Office |Yijing Village |

|Terminal Station | | | |

|Wohushan Initial and |Xinghualing District |Yangjiayu Sub-district Office |Zhongjianhe Village |

|Terminal Station | | | |

|Yingxin Street |Jiancaoping District |Yingxin Street Sub-district |Nangunian Village |

|Initial and Terminal | |Office | |

|Station | | | |

|Beiying Depot |Xiaodian District |Beiying Sub-district Office |Base of Stud Plot of the provincial Forestry|

| | | |Department |

|Nanhan Depot |Wanbolin District |Xiaojingyu Sub-district Office|Jiuzhou Village |

1.5 Measures to Minimize Resettlement

1.5.1 Measures adopted in the project design stage

In the planning and design stage, to mitigate the impact on local economy, the leading group of the World Bank Financed Taiyuan Urban Transport Project has several meetings together with the consulting and design departments to discuss how to optimize the design and how to mitigate impact.

[pic]

Picture 1-1 Personnel of the Resettlement Office, design and consulting units are

surveying the site to optimize the alignment

Shanghai Municipal Engineering Design General Institute, responsible for the design of the project, East China Investigation and Design Institute, responsible for environmental impact assessment, Research Center for Involuntary Resettlement, Wuhan University, responsible for resettlement consulting, Liaoning Academy of Social Sciences, responsible for public participation and collecting of complaints give their suggestions for optimization of the project. The suggestions are reported to the project office by Shanghai Municipal Engineering Design General Institute. In the project design stage, the principles agreed upon to reduce impact are as follows:

First, compare different schemes, take the impact on local society and economy into consideration, minimize the use of cultivated land.

Second, minimize relocation, and take this as the major factor when choosing schemes. Leave reasonable space for other public utilities.

Third, for reconstruction and expansion of roads, when deciding the length of the red line, take the relocation into consideration, and maintain the original length of red line to reduce relocation.

For example, at the east section of North Mid Ring Road, there are two design schemes. One is the circuitous line scheme and the other is direct line scheme. Based on the initial design by Shanghai Municipal Engineering Design General Institute, East China Investigation and Design Institute and Research Center for Involuntary Resettlement, Wuhan University compare the two schemes from the aspect of environmental impact and resettlement. The environmental assessment indicates, the circuitous line scheme brings huge impact on the Zoo, and the disadvantages outweigh the advantages. The resettlement research indicates the direct line has more advantages in terms of the amount of displaced persons and relocation, and resettlement cost. What’s more, the direct line scheme makes it possible to combine this transport project with the old city reconstruction project and “village within the city” reconstruction project. Therefore, it is suggested to adopt the direct line scheme. See Attachment 1 for detailed demonstration of direct line and circuitous line schemes for North Mid Ring.

Table 1-3 Comparison of line schemes for North Mid Ring Road

|Scheme |Line design |Length |Transport |Connection with road |Impact on |

| | | |capacity |network |environment |

|Circuitous line|Going along the north side of |11.75km |The section |It can be connected with |The section along |

| |Jian River, crossing Jiefang | |along Wohu |expressway passing |the Jian River is |

| |Road, Jian River Road, Railway | |Mountain is of|Dongshan through |of great impact on|

| |Beitongpu line, passing the | |low linear is |Zhangzitou Overpass. It is|environment of |

| |entrance of the Zoo, going round| |standard, the |about 1.9~3.0km away from |Wohu Mountain |

| |Wohu Mountain, turning from the | |nodes are |Beida Street, of low |Park, and |

| |north to the east side, and | |difficult to |capacity to diffluence the|residents of Wohu |

| |connecting with Taihang Road | |cope with, and|traffic on Beida Street, |Mountain. It is of|

| |under planning | |the pressure |of long distance to |great difficulty |

| | | |on pre-Zoo |Taihang Road. |in land |

| | | |Road is | |acquisition. |

| | | |increased. | | |

|Direct line |Going along the north side of |9.95km, 1.8km|It is of high |It can be connected with |It mainly involves|

| |Jian River, crossing the Jian |shorter than |linearis |expressway passing |the relocation of |

| |River at the river bend, |the circuitous|standard, of |Dongshan through Yingchun |plants and |

| |crossing Taiyuan Mine Machine |line |great |Street and Yangjia Yu |factories, and the|

| |Factory, Fire Proof Material | |attraction to |Overpass. It is suggested |reconstruction of |

| |Factory, etc, going northward | |traffic along |to extend northward to the|“village within |

| |along one side of Taiyuan | |the road, and |expressway to facilitate |the city”. It is |

| |Carshop in Xiangtang East | |the road |the connection between the|easier for |

| |Street, crossing Xiangtang | |capacity is |speedway and the |relocation, and it|

| |Village, crossing Jianhe Road, | |increased. |expressway. |will promote the |

| |Railway Beitongpu Line, going | | |It is 1.2~1.6km from Beida|development of |

| |northward in the direction of | | |Street. The distance |Donggou. |

| |Beigedong Street, passing Jin’an| | |between roads is | |

| |Chemical Plan, and connecting | | |reasonable, it is of | |

| |with Taihang Road | | |obvious impact to | |

| |under planning. | | |diffluence traffic in | |

| | | | |Beida Street, and there is| |

| | | | |no circumambulation. | |

As well, in the process of site selection for initial and terminal Stations and parking and maintenance lost, the design institution puts forward two or three programs for each initial and terminal Station and parking and maintenance and submits them to the resettlement department and the environmental assessment department for field exploration and physical survey. The site selection program will be determined ultimately through comprehensive evaluation based on the opinions of different departments.

For example, For Wohushan Initial and Terminal Station, the site in the original program is located in Zhongjianhe Village in Xinghualing District, 70m away from the main entrance of the zoo and 400m away from Jianhe Road, with superior geographic location. However, this plot involves a large area of relocation. It is estimated that the area of the buildings to be relocated is 8500㎡ and 140 households with 430 members need to be resettled. Besides, this plot has a complicated property right, involving the dwelling land of the staff of Taiyuan Iron and Steel, the dwelling land of the villagers of Zhongjianhe Village, the dormitory of Taiyuan Earthquake Bureau and the staff quarter of Taiyuan Slaughterhouse. After field exploration, the resettlement department suggests adopting the comparative program. The site in the comparative program is located in Zhongjianhe Village in Xinghualing District, 1500m away from the north entrance of the Zoo and bordering on the streets on both sides, with superior location. The land occupies is the collective land of Zhongjianhe Village, and now its use right is held by Hengyihua Co., Ltd. and the refractory material plant. The land acquisition and relocation involves the above-mentioned two companies and Zhongjianhe Village, and the communication will be easier. It is estimated that the houses of 2238.8㎡ will be relocated and no relocation of private houses is involved. The optimized program reduces the quantity of resettlement to a great extent.

1.5.2 Measures to be adopted during implementation

When relocation cannot be avoided, to mitigate impact of the construction, the following measures shall be adopted:

●Collect basic information, make an in-depth analysis of local socio-economic status, make feasible Resettlement Action Plan to ensure that that the displaced persons would not suffer from loss due to the implementation of the project.

●Encourage the participation and supervision of the public.

●Strength internal and external monitoring, set up highly efficient feedback mechanism and channels, minimize the period for the disposal of information to ensure the timely solution of problems occurring in the construction. Notify in advance displaced persons, arrange sites for relocation, compensate the loss of displaced persons, minimize the idling period, and provide jobs for employees of affected enterprises.

●During the relocation, get help and support from local governmental authorities to ensure the smooth implementation of resettlement, and to reduce the pressure and loss of displaced persons, institutions and enterprises.

1.5.3 Measures to be adopted during the construction

The following measures are to be adopted during the construction to mitigate impact:

●Reasonably make construction plan and arrange traffic. For example, when reconstructing or expanding road, when possible, the construction is carried out on one half of the road, the other half is reserved for traffic, and adjust the traffic within a small area, minimizing the impact of construction on the surrounding environment and traffic order. When excavating, all the factors shall be taken into full consideration. The excavation, laying of pipelines and backfilling shall be finished in the shortest time possible. For road crossing road with heavy traffic, the construction shall not be carried out in rush hours (for example the construction is carried out during the night to ensure smooth traffic flow in the day). Barbarian work manner is to be avoided. It is forbidden to destroy existing pipelines. Warning signs, signals and leading marks shall be set up for vehicles and pedestrians. After the completion of the construction, the site shall be cleared and opened to the traffic.

●Dredged spoil shall be timely carried out, and over loading is forbidden. Measures shall be taken to avoid spilling along the road. Before driving out, the tires of vehicles shall be flushed by high pressure water to avoid pollution of roads. The entrance of the construction site shall be timely cleaned.

●In the area within 200 m away from residences of the civilians, the construction is forbidden from 22 o’clock in the evening to 8 o’clock the next morning. And equipment with low noise shall be chosen for construction. For construction at night that affects citizens, measures shall be taken to eliminate or control noises, and temporary sound barrier equipment shall be set up around the construction site or near the residences of the civilians.

●The construction unit shall timely contact with local environmental sanitation department to clear and clean the wastes in the construction sites to make it clean and tidy.

1.6 Preparation and Progress of the Project

According to the demand of the preparation of resettlement work, the deadline of the construction of North Mid Ring, Taihang Road and related projects is the 20th day of December in 2006, and the deadline of the construction of parking and maintenance lots and initial and terminal stations involved in the project of public transport is the 20th day of July in 2007. The status quo of the construction deadline is taken as the reference of resettlement survey. The Resettlement Action Plan for Taiyuan Urban Transport Project is prepared according to inventory of properties for relocation, socioeconomic investigation of displaced persons, data of technical feasibility report. The economic and technical feasibility report was finished in May 2008 and approved in August 2008, and estimated to be appraised and approved by the World Bank in September 2009. The loan agreement with the World Bank is to be signed in March 2009, the initial design is to be finished in December 2008, and the detailed construction design is to be finished and the project is to be started in March 2009.

1.7 Ownership of the Project

The owner of the project is Taiyuan Municipal People’s Government.

1.8 Implementation Schedule of the Project

See table 1-4 for project preparation and implementation schedule.

Table 1-4 Schedule for the preparation and implementation of the project

|Items |Time |

|Approval of Feasibility Report |August 2008 |

|Passing the project appraisal |September 2008 |

|Finishing initial design |December 2008 |

|Finishing detailed design for construction | March 2009 |

|Implementation of the project | March 2008 – March 2011 |

1.9 Approval for Land Use and Relocation

See table 1-5 for the schedule for applying approval for land use and relocation

Table 1-5 Schedule for applying for approval for land use and relocation

|Items |Time |Examined and approved by |

|Initiation of the project |November 2007 |Shanxi Provincial Development and |

| | |Reform Commission |

|Applying for land use |December 2008 |State Council |

|Approving the Resettlement Action Plan |February 2009 |Shanxi Provincial People’s Government|

1.10 Laws Related to Compensation Rate

This Resettlement Action Plan is formulated by the Project Resettlement Office after fully negotiating with resettlement office of each district in Taiyuan and affected households and institutions based on intensive investigation and research, and the resettlement policies therein are recognized by each relevant government department of Taiyuan City. After the Resettlement Action Plan passes the appraisal of the World Bank and is approved by the people’s government of Shanxi Province and Taiyuan City, the policies and standards therein will be strictly conformed to during the implementation. Taiyuan Municipal People’s Government acknowledges that all policies and standards stated in this Resettlement Actions Plan will be in conformity with the policies of the World Bank concerning involuntary resettlement as well as with relevant laws and regulations of the People’s Republic of China and Shanxi Province and keep in line with relevant local policies and standards of Taiyuan City.

2.Project Impact Analysis

2.1 Definition of Project Impact

Physical survey scope of project impact is the red line scope of road planning determined according to design organization of project planning, generally with 25m of both sides of road center, namely, all affected things within the range of 50m width belong to survey scope. In some regions, design organization of project planning carried out local optimization and slightly adjusted project impact scope according to topographic characteristics, engineering requirements and actual situation. Because the project is still in the process of optimization design while the physical survey for the resettlement is carried out, design organization of the project may carry out optimization design to the route and the date on land acquisition and relocation may be further adjusted. Resettlement office will modify and perfect Resettlement Action Plan according to adjustment data. Meanwhile, any significant change of project impact will be reported to the World Bank prior to implementation and the reasons for the change will be explained. This resettlement plan also applies to the extra displaced persons, affected enterprises and institutions, affected villages and others.

Project impact is defined as follows:

(1) Permanent occupied land: all varieties of cultivated land and uncultivated land to be used permanently within the red line range of the project. Cultivated land mainly includes paddy field, dry land, vegetable land, pond, fruit and tea garden, nursery, and so on; uncultivated land mainly includes barren hill, barren land, economic forest, timber line, housing site, and so on.

(2) Temporary land acquisition: all varieties of land to be used temporarily during construction period, which may be recovered after construction.

(3) Relocated buildings: all buildings within the red line range of the project, mainly including brick and concrete house, brick and wood house, simple house, etc. According to the proprietary rights of the buildings, they may be classified as private buildings and buildings of enterprises institutions. According the purposes of the buildings, they may be classified as private dwelling, houses used by enterprises and institutions, shops, and etc.

(4) Affected attachments to the ground: attachments to the ground within the red line range of the project, mainly including pool, fence, well, tomb, fruit tree, terrace, etc.

(5) Affected public facilities: public facilities and public service facilities within the range of project impact.

(6) Affected family households: any family household with land, buildings and attachments to the ground within the red line range of the project or affected directly.

(7) Affected communities: any community with land, buildings and attachments to the ground within the red line range of the project or affected directly.

(8) Affected enterprises and institutions: any enterprise or institution with land, buildings and attachments to the ground within the red line range of the project or affected directly.

(9) Displaced persons of the project: all the members of affected family households and affected enterprises and institutions form displaced persons of the project.

(10) House with title: house having total or part of house property rights or having no formal certificate on house property rights but having construction documents and credence issued by governments or relevant governments of all levels.

(11) Illegal Constructure: constructures having no relevant certificates issued by any house property department or land department and being built without permission, and temporary building being built with the approval of relevant department but exceeding service period specified in the document.

(12) Affected labor: labors working in affected shops, enterprises or institutions or engaging in agricultural production on the land for acquisition.

(13) Affected renter: all the persons leasing affected buildings for living or business operation, based on the contracts.

(14) Vulnerable groups: vulnerable groups refer to social groups in the residents that are easy to be harmed, lack of capability of responding social change, and stand in the unfavorable status due to their weak social participation capability, social security, disability, poverty and others, mainly including: solitary and widowed elder, female single-parent family, orphan, poor family, handicapped person and patent, and etc.

2.2 Project Socioeconomic Survey

From December 2006 to January 2007, displaced persons of The World Bank Financed Taiyuan Urban Transport Project and environment evaluation department and Center for Resettlement Research of Wuhan University successfully made the resettlement survey in the regions affected by North Mid Ring, Taihang Toad and related projects together with the great help of resettlement offices of Yingze District, Xinghualing District, Jiancaoping District, Wanbolin District and Xiaodian District. The resettlement survey consisted of two parts: one was survey of objects in land acquisition and relocation that maybe involved in project construction; the other was survey of social economy of the displaced persons and enterprises and institutions.

In accordance with the involuntary resettlement policies of the World Bank, the land acquisition and relocation caused by the resettlement spots used for building resettlement houses for the families relocated due to the project will be brought into the impact scope of the project and the unified resettlement policies will be implemented. With respect to the resettlement spots, because at present only the written proposal of location is completed and the approximate location is determined, the accurate position needs to be detailed and the conditions for carrying out detailed survey on land acquisition and relocation have not been equipped with. Therefore, the Project Resettlement Office works out specific Resettlement Framework for the resettlement of resettlement spots in accordance with the policies and standards in line with this project, and will prepare the detailed Resettlement Plan for the resettlement spots after the conditions are equipped with.

The resettlement survey may be divided into three parts as follows:

1.Literature survey

a. Statistic of social economy of Taiyuan city and the project area;

b. Local laws and regulations of the state, Shanxi province and Taiyuan city related to land acquisition and resettlement.

2.Social economy background survey

a. Survey of basic circumstances of affected families and vulnerable families in the area;

b. Public opinions and suggestions;

c. Survey of basic circumstances of affected villages in the area: population, labour force, industrial structure, and plantation and etc.

3.Survey of affected objects in land acquisition and relocation

a. Circumstance of land acquisition: position, category and area;

b. Relocated buildings and other attachments to the land: position, category, and quantity and property rights;

c. Category and quantity of various public facilities;

d. Basic circumstances and affected situation of enterprises and institutions.

The survey gathered the impact situation of 2193 affected families, 112 affected enterprises and institutions, 114 shops and one smallware market, carried out sampling survey on the basic situation of 347 families, initially knew basic impact resulted from the project and provided information for compiling of Resettlement Action Plan. Meanwhile, the survey also gathered statistical information of social and economic development of affected areas in recent years, relevant policies and local laws and regulations relating to land acquisition and house relocation in affected areas, important cases about land acquisition and relocation in recent years and basic information about market exchange of Taiyuan estate. The information can be regarded as the reference to establishment of the compensation policy.

Towards the end of July 2007, after the design program for initial and terminal stations and parking and maintenance lots of the project of public transport was put forward, the Project Resettlement Office organized the personnel of the resettlement consulting organization and the public transport company to carry out resettlement survey on four initial and terminal stations and two parking and maintenance lots, holding complete resettlement information and laying the foundation of perfecting the Resettlement Action Plan.

[pic]

Picture 2-1 Survey personnel explore requisitioned land on the spot.

[pic]

Picture 2-2 Survey personnel measure the relocated houses on the spot.

2.3 Impact of Land Acquisition and Relocation

According to physical survey data and statistics for the resettlement implemented by Leadership Office of Taiyuan Urban Transport Project and Center for Involuntary Resettlement Research, Wuhan University together, the basic data of the impact of land acquisition and relocation for the project are as follows:

Affected administrative units: as to Taiyuan urban transport project, there are six affected districts, i.e. Wanbolin District, Jiancaoping District, Xinghualing District, Yingze District, Xiaodian District and Jinyuan District, 15 affected offices(township ships) and 37 villages (communities) in Taiyuan City.

Affected by relocation:

Total area of relocated buildings: 423508.92.1㎡

Households and persons affected by relocation: 2193 households and 7752 persons, including 606 rural households with 2518 persons, and 1587 urban households with 5234 persons.

Relocated private houses: 1208 households and 4407 persons, including 606 rural households with 2518 persons, and 602 urban households with 1889 persons. Total area of relocated private houses is 154784.82㎡. And there are 985 urban households with 3345 persons who live in enterprise or unit-owned dormitories will also be relocated.

Affected enterprises and institutions: total number is 112 and the area is 266563.4㎡.

114 shops and one small ware market with 652 employees will be affected. The area of relocation is 19351.2㎡, including 2160.7㎡ for private shops and 17190.5 for enterprises and units.

Affected by land acquisition:

Acquired collectively-owned land: 795.47mu, including cultivated land of 93.75mu.

Persons affected by the acquisition of collectively-owned cultivated land acquisition: 11 households, 48 persons and 25 labors.

Acquired collectively-owned uncultivated land: 701.73mu.

Acquired state-owned land: 1320mu including 144mu of state-owned agricultural land and 1176mu of state-owned land for construction.

Detailed impacts see 2-1a and 2-1b.

Table2-1a Summary of the impacts of land acquisition and relocation of Taiyuan Urban Transport Project

|No. |item name |involved area |land requisitioned (mu)|area of relocation |Number of affected enterprises|number of affected |households |

| | | | |(㎡) |and institutions |shops |relocated/persons |

|I. North Mid Ring |Jiaocaoping District, |104.41 |262838.89 |55 |38 |1652/5660 |

| |Xinghualing District | | | | | |

|II. Taihang Road |Xinghualing District, Yingze |508.56 |144909.03 |53 |69 |536/2071 |

| |District, Xiaodian District | | | | | |

|III. Project of public transport | |182.5 |15961 |4 |7 |5/21 |

|1 |Beiying Parking and Maintenance |Xiaodian District | |2356 |0 |0 |0 |

| |Lot | | | | | | |

|2 |Nanhan Parking and Maintenance |Wanbolin District |121.5 |4500 |1 |4 |0 |

| |Lot | | | | | | |

|3 |Beiyan Initial and Terminal |Jinyuan District |15.7 |1190 |0 |0 |0 |

| |Station | | | | | | |

|4 |Zoo Initial and Terminal Station|Xinghualing District |21 |4580 |0 |0 |0 |

|5 |Helaowan Initial and |Wanbolin District |10.8 |3335 |3 |3 |5/21 |

| |TerminalStation | | | | | | |

|6 |Yingxin Street Initial and |Jiancaoping District |13.5 |0 |0 |0 |0 |

| |Terminal Station | | | | | | |

|Total |795.47 |423508.92 |112 |114 |2193/7752 |

Table 2-1b Taiyuan Urban Transport Project Land Acquisition and Resettlement impacts

|Detailed list of impacts |Total amount of |Total HH |Total HH/persons|businesses |Shops |

| |land(mu) |affected by land|displaced |affected |affected |

| | |Acqu. | | | |

|Roads Network component |

|North Middle Ring Road |

|Jiaocaoping district |82.71 |

|Xinghualing district |

|Xinjian Street Bus lane |

|6 interchanges |

|Nanhan |

|Yingxin |

|Bus bays stops (10 proposed, including Xinjiang Street Busbay) |

|Traffic Safety and Management component (impacts for these addressed under roads network component) |

|Resettlement Sites |

|Market |

|Waliu road connection |

|5 existing dump sites will be used, there will be no relocation and land acquisition |

The impacts of this table are permanent land acqusition and relocation, and the impacts of tempoary land use are not available at present stage,they will be provided with the progress of design.

2.4 Impact of Land Acquisition for the Project

According to the survey and statistics, total area of the land requisitioned for the project is 2124.77mu, including 795.47mu of collective land and 1320mu of state-owned land. Among the collective land requisitioned, cultivated land is 93.74mu, and non-cultivated land is 701.73mu; among the state-owned land requisitioned, the land used for construction is 1176mu, and the state-owned agricultural land and wood land is 144mu.

2.4.1 Acquisition of rural collectively-owned land

North Mid Ring

North Mid Ring Road is involved in the acquisition of rural collectively-owned land in two districts (Jiancaoping and Xinghualing) and four villages (Dadongliu, Xiaodongliu, Xiliu and Xiangtang). The total area of land acquired is 104.41mu, including 35.1mu of cultivated land and 69.31mu of uncultivated land.

Taihang Road

Taihang Road is involved in the acquisition of rural collectively-owned land in three districts (Xinghualing District, Yingze District and Xiaodian District). The total area of land acquired is 508.56 mu, including 29.44 mu of cultivated land, 5.79%, and 69.31mu of uncultivated land, 94.21%. See Table 2-2 for the details of the acquisition of collectively-owned land of each affected village.

Analysis on survey data shows that, cultivated land affected by Taiyuan urban transport project mainly is housing site and three-barren land, and the area of cultivated land is 93.74mu. According to the field survey of survey personnel of Center for Involuntary Resettlement Research, Wuhan University, for this, there are two reasons as follows:

Firstly, the scope of project impact is peri urban, around which less cultivated land exists.

Secondly, on Taihang Road, where acquisition of collectively-owned land centers, the land acquired has been controlled in Xiaozaogou, Daochanggou, San’ergou, Baergou in Xinghualing District according to Taiyuan urban planning. The land used for construction on Taihang Road has been controlled for many years.

64.54mu of cultivated land acquired for the project mainly is fruit garden and greenhouse, contracted by seven peasant family households, among which, two are in Dadongliu Village in Jiancaoping District, two in Xiaozaogou Village in Xinghualing District, one in Longbao Village in Xiaodian District and two in Dianpo Village inYingze District. Property rights of 1.46mu and 0.8mu green houses belong to Baergou Village and Daochanggou Village in Xinghualing District, but at present, one is used by a military organization (490 Army). There are 30 members and 16 labors in these seven households.

Project of public transport

In the project of public transport, Helaowan Initial and Terminal Station occupies the land of 10.8mu, all of which is non-cultivated land; Nanhan Depot occupies the land of 121.5mu, all of which is non-cultivated land; Beiying Depot occupies the land of 90mu, which is the wood land of the Base of Stud Plot of the Provincial Forestry Department; Beiyan Initial and Terminal Station occupies the cultivated land of 15.7mu, involving 2 contracting households; Yingxin Street Initial and Terminal Station occupies the land of 13.5mu, which is the fruit garden contracted by two households; Zoo Initial and Terminal Station occupies the land 21mu, all of which is non-cultivated land. Total area of the cultivated land requisitioned for the project of public transport is29.2mu, involving 4 families, 18 persons and 9 labors.

Table 2-2 Types and quantity of collectively-owned land requisitioned for Taiyuan Urban Transport Project

|District |Office |Village |Cultivated Land (mu) |Uncultivated Land (mu) |Total |

| | | |Fruit |Green House|Total |Hosing Site |Three-barren|Total | |

| | | |Garden | | | |Land | | |

|I. North Mid Ring |

|Jingcaoping |Huifeng |Dadongliu |35.1 |0 |35.1 |0 |0 |0 |35.1 |

| | |Xiliu |0 |0 |0 |14.85 |0 |14.85 |14.85 |

| | |Xiaodongliu |0 |0 |0 |32.76 |0 |32.76 |32.76 |

| | |Sub-total |35.1 |0 |35.1 |47.61 |0 |47.61 |82.71 |

|Xinghualing |Yangjiayu |Xiangtang |0 |0 |0 |21.7 |0 |21.7 |21.7 |

| | |Village | | | | | | | |

|Subtotal of North Mid Ring |35.1 |0 |35.1 |69.31 |0 |69.31 |104.41 |

|II. Taihang Road |

|Xiaodian |Beiying |Longbao |2.03 |0 |2.03 |21.75 |35.25 |57 |59.03 |

|Xinghualing |Yangjiayu |Daochanggou |0 |0.8 |0.8 |5.13 |5.02 |10.15 |10.95 |

| | |Baergou |0 |1.46 |1.46 |4.48 |54.22 |58.7 |60.16 |

| | |San’ergou |0 |0 |0 |17.7 |28.2 |45.9 |45.9 |

| | |Xiaozaogou |10.2 |7.2 |17.4 |11.25 |11.63 |22.88 |40.28 |

| | |Sub-total |10.2 |9.46 |19.66 |38.56 |99.07 |137.63 |157.29 |

|Yingze |Haozhuang |Dianpo |7.75 |0 |7.75 |18.75 |2.94 |21.69 |29.44 |

| | |Dongtaibao |0 |0 |0 |0 |16.5 |16.5 |16.5 |

| | |Haojiagou |0 |0 |0 |40 |20 |60 |60 |

| | |Haozhuang |0 |0 |0 |66.3 |25.2 |91.5 |91.5 |

| | |Wangjiafeng |0 |0 |0 |42 |52.8 |94.8 |94.8 |

| | |Sub-total |7.75 |0 |7.75 |167.05 |117.44 |284.49 |292.24 |

|Subtotal of Taihang Road |19.98 |9.46 |29.44 |227.36 |251.76 |479.12 |508.56 |

|III. Project of public transport |13.5 |15.7 |29.2 |0 |153.3 |153.3 |182.5 |

|Beiying Parking and Maintenance Lot |0 |0 |0 |0 |0 |0 |0 |

|Nanhan Parking and Maintenance Lot |0 |0 |0 |0 |121.5 |121.5 |121.5 |

|Beiyan Initial and Terminal Station |0 |15.7 |15.7 |0 |0 |0 |15.7 |

|Zoo Initial and Terminal Station |0 |0 |0 |0 |21 |21 |21 |

|Helaowan Initial and Terminal Station |0 |0 |0 |0 |10.8 |10.8 |10.8 |

|Yingxin Street Initial and Terminal |13.5 |0 |13.5 |0 |0 |0 |13.5 |

|Station | | | | | | | |

|Total |68.58 |25.16 |93.74 |296.67 |405.06 |701.73 |795.47 |

Data Source: Survey on Land Acquisition and Relocation of Taiyuan Urban Transport Project.

2.4.2 Acquisition of state-owned land

Besides 795.47mu of rural collectively-owned land, 1320mu of state-owned land will also be requisitioned for the construction of the project, including 1176mu of the stated-owned land used for construction and 144mu of state-owned agricultural land and wood land. The state-owned agricultural land and wood to be requisitioned now belongs to Horticultural Research Institute of Shanxi Academy of Agricultural Science and the Base of Stud Plot of the Provincial Forestry Department.

2.5 Relocation

According to the resettlement survey, total area of various buildings to e relocated for Taiyuan Urban Transport Project is 423508.92㎡, including: 1) 154784.82㎡ of private houses, 2) 266563.4㎡ of the buildings of enterprises and institutions, and 3) 2160.7㎡ of various private shops.

2.5.1 Relocation of private houses

According to the survey date, the private houses to be relocated for Taiyuan Urban Transport Project involve 1208 households and 4407 persons. Total area of the houses to be relocated is 154784.82㎡, including 97.44㎡ of steel-concrete structure, 118357.3㎡ of brick-concrete structure, 23893.95㎡ of brick-wood structure, 3832.79㎡ of earth-wood structure and 10763.3㎡ of simple structure. See Attached Table 1 for the details of area and structure distribution of private houses to be relocated.

North Mid Ring

Total area of private houses to be relocated for the subproject of North Mid Ring is 89953.19㎡, including 63404.14㎡ of brick-concrete structure, 20500.04㎡ of brick-wood structure and 6049.01㎡ of simple structure. On North Mid Ring Road, affected families include rural families and community residents, 965 households with 3312 persons, including 602 households of community residents with 1889 persons and 363 rural households with 1423 persons.

Taihang Road

Total area of private houses to be relocated for the subproject of Taihang Road is 63656.63㎡, including 97.44㎡ of steel-concrete structure, 54190㎡ of brick-concrete structure, 2982.11㎡ of brick-wood structure, 3832.79㎡ of earth-wood structure and 2554.29㎡ of simple structure. All of the private houses to be relocated for the subproject of Taihang Road belong to rural families, involving 238 households and 1074 persons.

Project of public transport

Total area of private houses to be relocated for the project of public transport is 3335㎡, including 763.2㎡ of brick-concrete structure, 411.8㎡ of brick-wood structure and 2160㎡ of simple structure. All of the private houses to be relocated for the project of public transport belong to rural families, involving 5 households and 21 persons.

It is needed to be pointed out that, the private houses to be relocated for the projects of North Mid Ring, Taihang Road and public transport involve 1208 households and 4407 persons, the abovementioned data doesn’t include the houses belonging to enterprises and institutes to be relocated which are occupied by 985 households and 3345 persons, among which, North Mid Ring involves 687 households and 2384 persons and Taihang Road involves 298 households and 997 persons. See Attached Table 2 for the details of the distribution. The number of such houses to be relocated is included in their institutions. Therefore, in total, there are 2193 households with 7752 persons affected by the relocation for Taiyuan urban transport project.

2.5.2 Relocation of buildings of enterprises and institutions

According to resettlement survey data, 112 enterprises and institutions are involved in relocation of buildings of 2266563.4㎡ for Taiyuan Urban Transport Project. Seen from the distribution of these enterprises and institutions, North Mid Ring Road affects 55 ones, Taihang Road affects 53 ones, and the project of public transport affects 4 ones, among which, 24 ones are in Wanbolin District, 29 in Jiancaoping District, 30 in Yingze District, 27 in Xinghualing District, and 2 in Xiaodian District. See Table 2-3 for quantity and distribution of buildings of enterprises and institutions to be relocated. See Attached Table 3 for quantity of buildings of each enterprise or institution to be relocated.

Table 2-3 Buildings of enterprises and institutions to be relocated(㎡)

| |House |Total |

| |Steel and |Brick and |Brick and wood |Simple | |

| |concrete |concrete | | | |

|Jiancaoping (29 enterprises and |422.8 |65069.1 |2089.3 |10563 |78144.2 |

|institutions) | | | | | |

|Wanbolin (20 enterprises and institutions) |2511 |18348 |3291.1 |1079 |25229.1 |

|Xinghualing (6 enterprises and institutions)|0 |62962 |4632.4 |1918 |69512.4 |

|56 enterprises and institutions on North Mid|2933.8 |146379.1 |10012.8 |13560 |172885.7 |

|Ring | | | | | |

|Xinghualing (21 enterprises and |8776.2 |9366.1 |14.1 |669.8 |18826.2 |

|institutions) | | | | | |

|Yingze (30 enterprises and institutions) |44874.8 |2026.3 |186 |8767.2 |55854.3 |

|Xiaodian (2 enterprises and institutions) |1537.2 |4966 |0 |68 |6571.2 |

|53 enterprises and institutions on Taihang |55188.2 |16358.4 |200.1 |9505 |81251.7 |

|Road | | | | | |

|4 enterprises for the project of public |0 |4500 |4876 |3050 |12426 |

|transport | | | | | |

|4 enterprises in Wanbolin District |0 |4500 |4876 |3050 |12426 |

|Total: 112 enterprises and institutions |58122 |167237.5 |15088.9 |26115 |266563.4 |

2.5.3 Illegal buildings affected by the project

According to the survey, the area of illegal buildings to be relocated for Taiyuan Urban Transport Project is 50619.61㎡, including 5697.85㎡ of private unlicensed buildings and 44921.76㎡ of unlicensed buildings owned by enterprises and institutions. According to the survey data, among the 5697.85㎡illegal private buildings, 2800 ㎡are used by 54 households as residential houses who have no other places to live.See Attached Tables 4 and 5 for the distribution of unlicensed buildings.

2.5.4 Affected attachments

The physical survey for the resettlement shows that attachments affected by land acquisition for Taiyuan Urban Transport Project mainly include:

fence, well, tree, greenhouse, terrace, etc.; those affected by relocation mainly include electricity meter, water meter, telephone, air-conditioner, screen wall and others. According to the survey data, all the attachments affected by the project mainly are: 1763 telephones, 1711 closed circuit televisions, 14 air-conditioners, 3485 electricity meters, 2766 water meters, 291 screen walls, fence of 28280.2㎡, 2950 big timber trees, 119 small timber trees, 573 fruit trees with fruit, 358 fruit trees without fruit, greenhouse of 19304.05㎡, 20 wells, 74 pools, and terrace of 12165㎡. See Attached Tables 6 and 7 for attachments of private family households and enterprises and institutions affected by Taiyuan Urban Transport Project.

2.5.5 Affected shops

According to the survey, there are 114 shops with 297 empolyees will be affected and the area of the buildings to be relocated is 3511.2㎡. Among the affected shops, 32 shops with1350.5㎡of buildings belongs to enterprises and collective institutions, and 82 shops with 2160.7㎡of buildings are private.107 shops will be affected for North Mid Ring and Taihang Road,. For public transport project, 3 shops in Helaowan are affected, and 4 shops are affected by Nanhan Depot and leased from Waliu Village and there are 8 employees.See Attached Table 8 for the shops affected by Taiyuan Urban Transport Project..

2.5.6 Affected smallware market

There is on smallware market to be relocated for the project of Taihang Road. The market is located in Haojiagou Village, Haozhuang Townshipship, Yingze District, and is divided into two rows, named Yiwu Street and Baogou Street, respectively. The building area is 4500㎡. There are 180 shops and 360 employees totally, and daily smallwares are mostly sold.

2.6 Affected Vulnerable Groups

2.6.1 Determination of affected vulnerable groups

Disadvantaged groups refer to ones of displaced persons of the project that are easiest to be hurt and have no ability of adapting to the changes brought by the project construction. Disadvantaged groups are mainly divided as follows:

●Lonely elderly: the single elderly over 65 years old and without the person fulfilling statutory duty of maintenance.

● Single-parent family: the household of the family is single and has under aged child.

● Orphan: the children without parents and are lower than 16 years old.

● Poor family: the urban families with Collecting Certificate of Lowest Living Security of Taiyuan Urban Residents, and rural poor households that have been specially determined.

● The disabled: the persons, in psychology, physiology or body constitution, having some tissue or function lost or off-normal, or the ability of participating some activity in the normal way lost totally or partially (subject to the holding of Disabled Person Certificate of the People’s Republic of China).

●The poor family only having one dwelling house and with dwelling area per capita less than 11.2㎡.

The determination of vulnerable groups is carried out in accordance with relevant policies and regulations and on the basis of field survey. In the implementation process, resettlement office will confirm it through door-to-door interview, neighboring interview and proving of community resident committee.

2.6.2 Affected families of vulnerable groups

According to the survey, among displaced persons, there are 109 families with vulnerable groups and 364 members. Vulnerable groups mainly in Yangjiayu and Huifeng, and the total number is 104 households with 342 members. See Table 2-4 for the distribution of affected vulnerable groups.

Table 2-4 Distribution of affected vulnerable groups

|District |Office |Community (Village) |Number of Households |Population |

|Xinghualing |Yangjiayu |Xiangtang Village |46 |111 |

|Yingze |Haozhuang |Haojiagou |3 |7 |

|Jiancaoping |Gucheng |Senyuannan Street |2 |15 |

|Jiancaoping |Huifeng |Dadongliu |11 |37 |

|Jiancaoping |Huifeng |Xiaodongliu |23 |92 |

|Jiancaoping |Huifeng |Xiliu |24 |102 |

|Total |109 |364 |

Data Source: Survey on Land Acquisition and Relocation for Taiyuan Urban Transport Project

2.7 Affected Infrastructures

The infrastructures affected by the project mainly include low-voltage illumination electric pole, high-voltage power transmission electric pole, transformer, and etc. See Table 2-5 for the types and quantities of affected infrastructures of each district and county.

Table 2-5 Types and quantities of affected infrastructures

|District |High-voltage electric pole|Low-voltage electric pole |PHS signal tower |Transformer |

|Jiancaoping |0 |114 |0 |3 |

|Xinghualing |14 |397 |0 |2 |

|Wanbolin |2 |61 |0 |1 |

|Yingze |1 |114 |0 |6 |

|Xiaodian |0 |28 |1 |1 |

|Total |17 |714 |1 |13 |

Data Source: Survey on Land Acquisition and Relocation of Taiyuan Urban Transport Project.

2.8 Impact of Land Acquisition and Relocation for linked Projects

2.8.1 Impact of land acquisition for linked projects

According to the survey, the land of 75mu will be acquired for extension line of Waliu Road, including 2.18mu nursery, 2.94mu uncultivated land and 69.88mu housing sites.

For the project of the bridge crossing Fenhe River, state-owned land of 200mu will be requisitioned.

State-owned agricultural land of 40.5mu will be acquired for extension line of Taihang Road.

2.8.2 Impact of relocation for linked projects

According to the survey, the total area of buildings to the relocated for two linked projects is 56604.55㎡, including 52173㎡ brick and concrete structure, 3638.55㎡ brick and wood structure, 601㎡ earth and wood structure and 192 ㎡ simple structure.

Between two linked projects, only Waliu Road is involved in the relocation of private houses. According to the survey, the houses of 57 households in Dongshe Village need to be relocated for Waliu Road, and the total area is 20767.55㎡, including 18153 brick and concrete structure, 2432.55㎡ brick and wood structure and 182㎡ earth and wood structure.

The buildings of ten enterprises and institutions need to be relocated for two linked projects, and the total area is 35418㎡.

Table 2-6 Quantities of buildings of enterprises and institutions to be relocated for linked projects(m2)

|Line |Institution |Brick & |Brick & |Earth & |Simple |Total |

| | |Concrete |Wood |Concrete | | |

|Extension line |Shanxi Academy |0 |48 |0 |0 |48 |

|of Taihang |of Agricultural | | | | | |

|Road |Science | | | | | |

| |Xudong Village |5057 |22 |0 |80 |5159 |

| |Collectivity | | | | | |

| |Shannxi Material |1400 |1136 |0 |112 |2648 |

| |Storage | | | | | |

| |& Transportation | | | | | |

| |and | | | | | |

| |Distribution | | | | | |

| |Corporation | | | | | |

|Extension line |Dongshe Villager |1328 |0 |0 |0 |1328 |

|of Waliu Road |Committee | | | | | |

| |Aluminium Industry |0 |0 |0 |0 |0 |

| |Company | | | | | |

|Bridge crossing |Forest Park of Jiancaoping District |10728 |0 |144 |0 |10872 |

|Fenhe River | | | | | | |

| |Housing Company of Taiyuan Iron and Steel |3208 |0 |0 |0 |3208 |

| |Fazhong Farm |2475 |0 |265 |0 |2740 |

| |Shanxi Fodder Supervision Institute |7849 |0 |10 |0 |7859 |

| |Taiyuan Binxi Gass Reinforced Plastics Plant |1975 |0 |0 |0 |1975 |

| |34020 |1206 |419 |192 |35873 |

|Total | | | | | |

Note: the extension line of Waliu Road is only involved in the terrace of 570㎡of Dongshe Aluminium Industry Company and doesn’t affect other buildings.

Three commercial shops changed from dwelling houses at the start point of the extension line of Waliu Road is affected, and their property rights belong to the private. See Table 2-7 for details.

Table 2-7 Shops affected by linked projects

|No. |Address |Shop name |Owner name |Building structure |Area (㎡) |

|1 |Start point of Walu Road in Dongshe|Meiling Kitchen Ware |Lv Junsheng |Brick & Concrete |832 |

| |Village | | | | |

|2 |Start point of Walu Road in Dongshe| Jinlongmen Chaffy Dish|Li Jianli |Brick & Concrete |448 |

| |Village | | | | |

|3 |Start point of Walu Road in Dongshe| Ruiyun Auto Repair |Jia Xishou |Brick & Concrete |144 |

| |Village | | | | |

Besides, other attachments affected by the linked projects include 807.5㎡ fense, 15 big timers, 18 small timers, 13 tombs, 334㎡ greenhouse and 570㎡ terrace.

3. Analysis on Socioeconomic Impact of Project

3.1 General Introduction to Socioeconomic Development of the Regions Affected by the Project

Taiyuan City, as the provincial capital of Shanxi province, is the core city of energy and heavy chemical industry of China and has been a city with perfect infrastructures, abundant economic foundation and convenient and developed traffic and communication through over fifty-year development after the establishment of new China. In 2006, gross value of production of the whole city was 89.3 billion yuan, local fiscal revenue was 5.695 billion yuan, and per-capita GDP was 26107 yuan. Per-capita net income of peasants was 4402 yuan, and per-capita disposable income of town dwellers was 10476 yuan.

By the end of 2006, gross population of Taiyuan city is 3716 thousand, including permanent population of 3403.8 thousand with domicile and provisional flow and temporary resident population of 312. Permanent populations include agricultural population 1015 thousand, 29.81%, and nonagricultural population of 2389 thousand, 70.19%. Population density is 491 persons/k㎡, and the population per household is 3.7.

Wanbolin is the west gate of urban area of Taiyuan City and is one of core urban areas of Taiyuan, with the area of 305k㎡, population of 532 thousand, rural population of 76 thousand and population density of 1871/k㎡. There are 13 sub-district offices, 84 community resident committees, 3 townships, 63 villager committees and 79 natural villages under the government of Wanbolin District. In 2006, gross value of local production was 15.108 billion yuan including added value of the first industry of 533030 thousand yuan, that of the second industry of 10440 million yuan, and that of the third industry of 4620 million yuan; financial revenue was 530 million yuan and per-capita net income of the peasants was 5852 yuan.

Jiancaoping District is at the north end of Taiyuan City, with the largest west-east width of 26km and the largest north-south distance of 22km. Fenhe River passes through the district from south to north. The total area is 285.6k㎡, including urban construction area of 32.4k㎡. There are 9 sub-district offices, 53 community resident committee, 5 townships, 90 villager committees and 101 natural villages under the government of Jiancaoping District. At the end of 2006, the gross population of Jiancaoping District is 346 thousand, including rural population of 101 thousand. In 2006, gross value of local production was 12.51 billion yuan including added value of the first industry of 109850 thousand yuan, that of the second industry of 10080 million yuan, and that of the third industry of 2337 million yuan; financial revenue was 397 million yuan and per-capita net income of the peasants was 3920 yuan.

Xinghualing District is in the northeast of Taiyuan City, and is the political center of Taiyuan, the provincial capital of Shanxi Province, and many provincial and municipal party, political and military institutions, such as the People’s Government of Shanxi Province, Political Consultative Commission of Shanxi Province, Military Area Command of Shanxi Province, Municipal Committee of the C.P.C of Taiyuan City, the People’s Government of Taiyuan City and so on, are set in this district. The total area is 170k㎡, including urban construction area of 32k㎡. There are 10 sub-district offices, 99 community resident committees, 2 townships, 44 villager committees and 54 natural villages under the government of Jiancaoping District. At the end of 2006, the gross population of Xinghualing District is 546 thousand, including rural population of 33 thousand. In 2006, gross value of local production was 11.79 billion yuan including added value of the first industry of 16950 thousand yuan, that of the second industry of 4058 million yuan, and that of the third industry of 7716 million yuan; financial revenue was 606 million yuan and per-capita net income of the peasants was 5381 yuan.

Yingze District is on the east bank of Fenhe River and in the center of urban area. The district connects to Xiaodian District in the south and Xinghualing District in the north, borders upon Yuci City and Shouyang County in the east and lies across Fenhe River from Wanbolin District. With the superior geographic location, Yingze District becomes the political center, traffic hinge and the window for external communication as well as the commercial center of the provincial capital of Shanxi Province. The total area is 117k㎡. There are 6 sub-district offices, 89 community resident committees, 1 town, 29 villager committees and 54 natural villages under the government of Yingze District. At the end of 2006, the gross population of Yingze District is 504 thousand, including rural population of 19 thousand. In 2006, gross value of local production was 15.89 billion yuan including added value of the first industry of 11000 thousand yuan, that of the second industry of 2680 million yuan, and that of the third industry of 13210 million yuan; financial revenue was 714 million yuan and per-capita net income of the peasants was 5081 yuan.

Xiaodian District is in the southeast of Taiyuan City and at the north end of Jinzhong Basin. It marches with Yuci District of Jinzhong City in the east, connects to Qingxu County in the south, lies across Fenhe River from Jinyuan District in the west and borders upon Yingze District at Nanneihuan Street. The total area is 295k㎡, including built-up area of 24.7k㎡. There are 6 sub-district offices, 63 community resident committee, 3 townships, 86 administrative villages and 98 natural villages under the government of Yingze District. At the end of 2006, the gross population of Xiaodian District is 509 thousand, including rural population of 131 thousand. In 2006, gross value of local production was 12.19 billion yuan including added value of the first industry of 241220 thousand yuan, that of the second industry of 4185 million yuan, and that of the third industry of 7631 million yuan; financial revenue was 609 million yuan and per-capita net income of the peasants was 5780 yuan.

Jinyuan District is in the southwest of Taiyuan City. It starts from Yijingdong Street and marches with Wanbolin District in the north, connects to Gaojiabao Village, Yaocun Townshipshop in the south, borders upon Qingxu County and Gujiao City in the southwest and lies across Fenhe River from Xiaodian District in the east. The total area is 287k㎡, 20.6% of total area of Taiyuan City. At the end of 2006, the gross population of Jinyuan District is 650 thousand, including nonagricultural population of 184.6 thousand and agricultural population of 113 thousand. There are 3 townshipships, 3 sub-districts and 18 community resident committees under the government of Jinyuan District. In 2007, gross value of local production was 4.497 billion yuan , financial revenue was 290 million yuan and per-capita net income of the peasants was 5782 yuan.

Table 3-1 General situation of socioeconomic development of the regions affected by Taiyuan Urban Transport Project (2006)

|Affected regions|Land area |Population |Gross value of |1st industry|2nd industry|3rd industry| Annual |Per-capita net|

| |(km1) |(10000) |local production| | | |average wage |income of |

| | | |(100million |(%) |(%) |(%) |of town |rural resident|

| | | |yuan) | | | |employee |(yuan) |

| | | | | | | |(yuan) | |

|Xiaodian |295 |50.6 |121.9 |1.98 |

|Households |74 |198 |75 |347 |

|Population |378 |751 |336 |1465 |

|Sex |

|Male |54.37 |50 |51.34 |51.43 |

|Female |45.63 |50 |48.66 |48.56 |

|Total |100 |100 |100 |100 |

|Age |

|0-16 |18.65 |16.94 |25.89 |19.4 |

|16-60 |75.79 |68.75 |62.05 |69.0 |

|60- |5.56 |14.31 |12.05 |11.5 |

|Total |100.00 |100.00 |100.00 |100.0 |

|Average Age |32.96 |37.54 |33.2 |35.37 |

|Nationality |

|Han |100 |99.6 |98.36 |99.49 |

|Hui |0 |0.2 |1.34 |0.41 |

|Man |0 |0.2 |0 |0.1 |

|Total |100 |100 |100 |100 |

|Education level |

|Illiteracy |4.74 |8.49 |5.88 |6.96 |

|Primary school |14.22 |10.14 |19.41 |13.17 |

|Junior middle school |48.82 |42.45 |49.41 |45.59 |

|Senior middle school |22.75 |25 |20.59 |23.48 |

|College and above |9.48 |13.21 |4.71 |10.43 |

|Other |0 |0.71 |0 |0.37 |

| Total |100 |100 |100 |100 |

|Marital status |

|Unmarried |24.17 |17.92 |15.88 |19.13 |

|Currently married |72.99 |72.17 |77.65 |73.54 |

|Bereft of spouse |1.42 |4.95 |4.71 |3.98 |

|Divorced |0 |0.94 |0.59 |0.62 |

|Others |1.42 |4.01 |1.18 |2.73 |

|Total |100 |100 |100 |100 |

|Occupation status |

|Worker |22.73 |23.64 |21.90 |22.89 |

|Agriculture |7.27 |0.00 |17.14 |6.84 |

|Cult., edu. and sanitation |40.00 |13.94 |31.43 |26.32 |

|Institutions |6.36 |4.24 |5.71 |5.26 |

|Others |23.64 |58.18 |23.81 |38.68 |

|Total |100.00 |100.00 |100.00 |100.00 |

|Unemployed |

|Student at school |29.90 |17.14 |9.43 |18.08 |

|Doing the housework |36.08 |21.63 |29.25 |26.56 |

|Doing nothing |25.77 |22.04 |25.47 |23.66 |

|Retired |3.09 |19.18 |2.83 |11.83 |

|No working ability |5.15 |7.35 |4.72 |6.25 |

|Others |0 |12.65 |28.30 |13.62 |

|Total |100.00 |100.00 |100.00 |100.00 |

In order to understand dwelling situation of affected families, the survey on types, building time, property rights, sanitary condition and energy utilization of dwelling houses of affected families is carried out. See Table 4-4 for results.

Table 3-4 Dwelling situation of affected families of Taiyuan Urban Transport Project

Unit: %

|Type |Jiancaoping |Xinghualing |Yingze |Total |

|Building |83.67 |7.63 |56.00 |34.35 |

|Single story building |16.33 |91.60 |44.00 |65.22 |

|Others |0 |0.76 |0 |0.43 |

|Total |100.00 |100.00 |100.00 |100.00 |

|Buildingup time |Jiancaoping |Xinghualing |Yingze |Total |

|15 years ago |4.08 |82.44 |26.00 |53.48 |

|10-15 years ago |67.35 |16.03 |10.00 |25.65 |

|5-10 years ago |10.20 |0.76 |16.00 |6.09 |

|Recent five years |18.37 |0.76 |48.00 |14.78 |

|Total |100.00 |100.00 |100.00 |100.00 |

|House property |Jiancaoping |Xinghualing |Yingze |Total |

|Self-owned |97.96 |46.56 |96.00 |68.26 |

| Leasing the public or the institution |2.04 |53.43 |4.00 |31.73 |

|Total |100.00 |100.00 |100.00 |100.00 |

|Having separate toilet or not |Jiancaoping |Xinghualing |Yingze |Total |

|Yes |93.88 |12.21 |78.00 |43.91 |

|No |6.12 |87.78 |22.00 |56.08 |

|Total |100.00 |100.00 |100.00 |100.00 |

|Kitchen |Jiancaoping |Xinghualing |Yingze |Total |

|Exclusive use |100.00 |94.66 |94.00 |95.65 |

|Sharing |0 |1.53 |0 |0.87 |

|No |0 |3.82 |6.00 |3.48 |

|Total |0 |100.00 |100.00 |100.00 |

|Energy |Jiancaoping |Xinghualing |Yingze |Total |

|Coal |75.51 |87.02 |68.00 |80.43 |

|Oil liquefied gas |24.49 |10.69 |28.00 |17.39 |

|Piping coal gas |0 |0.76 |4.00 |1.30 |

|Others |0 |1.53 |0 |0.87 |

|Total |100.00 |100.00 |100.00 |100.00 |

Seen from survey results, dwelling condition of affected families in Xinghualing District is weaker, which is expressed in the following three aspects: firstly, 91.6% of families live in single story buildings; secondly, 82% of houses were built 15 years ago; thirdly, 50% of families have no property rights of the houses they live in. In consideration of the large quantity of affected families in Xinghualing District and most samples for survey in Xinghualing District, Xinghualing needs special attention for dwelling houses of future resettlement.

For household income of rural residents, nonagricultural incomes are their main sources. Among Jiaocaoping District, Xinghualing District and Yingze District with concentrated displaced persons, the peasants in Xinghualing District have low incomes. Urban residents mainly rely on salary incomes. Seen from the districts, incomes of urban residents in Jiancaoping District are higher than that in Xinghualing District and Yingze District, main reason for which is that some affected urban residents in Jiancaoping District are working in Taiyuan Iron & Steel (Group) Co., Ltd. and this company is an enterprise with outstanding economic benefits in Taiyuan.

Table 3-5 Incomes of affected families

Unit: Yuan

| |Jiancaoping District|Xinghualing District |Yingze District |合计 |

|Rural residents |

|Farming income |163.27 |7.63 |200 |82.6358 |

|Local non-farm income |10967.35 |6772.76 |14353 |9321.277 |

|Outland non-farm income |204.08 |1913.74 |784 |1306.169 |

|Other incomes |3408.16 |2566.65 |3196 |2881.824 |

|Total |14742.86 |11260.78 |18533 |13591.91 |

|Urban residents   |

|Wage income |16956 |15072 |16026 |15677.52 |

|Operating income |816 |970 |305 |791.36 |

|Other incomes |1004 |229 |240 |394.17 |

|Total |18776 |16271 |16571 |16863.05 |

As to dwelling space, according the data supplied by Taiyuan Bureau of Statistics, at the end of 2006, per capita dwelling space in urban area is 12㎡. Rural residents have larger dwelling spaces. In 2006, per capita dwelling space of rural residents in Jiancaoping District is 25㎡, in Wanbolin District 28㎡, in Xinghualing District 31㎡, in Yingze District 30㎡, and in Xiaodian District 31㎡. The results of resettlement survey are generally in line with the above data. According to survey results, dwelling spaces of over 80% of rural residents are more than 80㎡, while that of 24% of urban residents are less than 402. The resettlement of these families is a key of future resettlement.

Table 3-6 Proportion of dwelling spaces of affected families

Unit: %

|Area |Rural residents |Urban residents |

|<30 |0 |23.96 |

|30-60 |2.16 |24.32 |

|60-80 |15.14 |39.43 |

|>80 |82.70 |12.29 |

|Total |100 |100.00 |

3.4 Analysis on Family Information of Affected Vulnerable Groups

Seen from special information of families of vulnerable groups, family members may be disabled, weak and sickly or have no regular income sources. See Attached Table 9 for special information of 109 vulnerable families.

The impact of land acquisition and relocation on vulnerable families faces two difficulties: firstly, the capital for buying new houses is not enough; secondly, house relocation and transition needs the support of manpower. This needs special attention during the process of resettlement.

3.5 Impact on Ethnic Minorities and Social Gender

According to census information supplied by Taiyuan Bureau of Statistics, there are 46 nationalities including Han, Man, Hui, Yi and others, among which, the population of Han nationality is over 99%. According to socioeconomic survey for resettlement, 99.49% of displaced persons belong to Han nationality, and there is no community with concentrated ethnic minorities within impact scope of Taiyuan Urban Transport Project. Therefore, the problem about the impact on ethnic minorities doesn’t exist.

According to sampling survey of resettlement organization, 48.5% of displaced persons are female. Generally speaking, educational level of women in affected regions is relatively low. Education level of most rural women is below junior high school, and illiterate and semi-illiterate women have a higher proportion. According to sampling survey, 8% of women are illiterate or semi-illiterate; 24% have accepted education in primary school, 54% have studied in junior high school, 11% graduated from senior high school or secondary technical school, and only 23% have accepted higher education.

The impact on employment of displaced persons is mainly in affected enterprises and institutions. In the enterprises and institutions with production and business being not affected, the employment of women is not affected by the project. For the enterprises with production and business being affected, resettlement office will give priority to the benefits of female employees during the recovery and resettlement of these enterprises.

As to the impact of relocation, 1834 households will obtain better dwelling conditions. For the women bearing most of labor service of the families, improvement of dwelling condition and environment may reduce their labor burden.

Seen from overall impact of the project, the construction of the project will significantly improve urban transport situation of Taiyuan. For the women more relying on urban public transport, the project will provide convenience for the transport of women and improve the quality of women’s life and this is a positive impact.

4. Law Framework and Policies

The plan and implementation of the settlement for Taiyuan urban transport project will strictly follow relevant law framework and policies of the People’s Republic of China, Shanxi province and Taiyuan city (as site of the project), and also will completely comply with the World Bank’s policies about involuntary resettlement.

4.1 Main Law Framework and Policies of Resettlement

4.1.1 Relevant laws and provisions enacted By the Central Government

●Land Administration Law of the People’s Republic of China implemented in Jan., 1999, revised and put in force on the 28th in Aug., 2004.

●Law of the Peoples Republic of China on the Administration of the Urban Real Estate put in force on the 1st in Jan., 1995.

●Administrative Regulations on the Urban Houses Relocation put in force on the 1st in Nov., 2001.

●Guiding Comments on the Estimate for Urban Houses Relocation put in force on the 1st in Jan., 2004.

●The State Council's Decision on Deepening Reform and Managing Strictly Land, issued by the State Council on the 21st, Oct., 2004.

●Notice of the State Council on Relevant Issues about Intensifying Land Control, issued by the State Council on the 31st in Aug., 2006.

●Real Right Law of the People’s Republic of China put in force on the 1st of Oct., 2007

4.1.2 Statues and policies enacted by the People’s Government of Shanxi Province and related departments

●Implementation Measures for Land Administration Law of the People’s Republic of China in Shanxi Province, put in force on the 26th in Sept., 1999.

●Statues for Urban Houses Relocation in Shanxi Province passed on the 27th in Sept. 2003 and put in force on the 1st in Jan., 2004.

●Management Approaches for Transforming Collectively-owned Land of ‘Urban Villages’ into State-owned Land in Shanxi Province, put in force on the 28th in Aug., 2003.

●Appraisal Approaches to Compensation Price for Urban Houses Relocation in Shanxi Province, issued on the 11th in Dec., 2004.

●Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, issued on the 11th in Dec., 2004.

4.1.3 Statues and policies enacted by the People’s Government of Taiyuan City and related departments

●Management Approaches for Urban Houses Relocation in Taiyuan City put in force on the 1st in Nov., 2002.

●Opinions on Accelerating Reconstruction of ‘Urban Villages’ in Taiyuan City put in force on the 1st in Apr., 2004.

●Measures on the Registration of Urban House Title passed on the 2nd in Apr., 2003.

●Notice on Relevant Problems as Short-term Resettlement Allowances and Moving subsidy for Urban Houses Relocation put in force on the 1st in May, 2001.

●Implementing Opinions on Base Price of Urban Storage Houses Exchange in Taiyuan City put in force on Oct. 1, 2006.

4.1.4 The World Bank’s policies on involuntary resettlement

●The World Bank’s OP4.12 of Involuntary Resettlement and Annex put in force on the 1st in Jan., 2002.

●The World Bank’s BP4.12 of Involuntary Resettlement and Annex put in force on the 1st in Jan., 2002.

4.2 Summary of Main Law Framework and Policies

4.2.1 Summary of relevant national law framework

4.2.1.1 Summary of law framework on land acquisition

●Land compensation belongs to the rural collective economic organization. However, compensation for attachments and young crops on the requisitioned land shall be paid to their owners.

●Resettlement subsidies for requisitioned land should adhere to be special fund for special use and must not be diverted for others. Resettlement subsidies will be paid to and managed by the rural collective economic organization or other units which take charge of resettlement of displaced persons. However, as for those displaced persons who don’t need unified resettlement, their resettlement subsidies will be paid individually or used for insurance under their agreement. (Implementation Details of Land Laws, No. 26 article.)

●In requisitioning land, compensation should be paid according to original purposes of the land requisitioned.

Compensation for requisitioned cultivated land includes compensation for land, resettlement subsidies and compensation for attachments and young crops on the land.

Therein to, the compensation for land shall be 6-10 times of the average output value of the three years preceding the requisition of the cultivated land. The resettlement subsidies shall be calculated according to the number of agricultural population to be resettled, which shall be counted by dividing the amount of cultivated land requisitioned by the per capital land occupied of the unit whose land is requisitioned. The resettlement subsidies for each agricultural person to be resettled shall be 4-6 times of the average annual output value of the three years preceding the requisition of the cultivated land. But the maximum resettlement subsidies per hectare of land requisitioned shall not exceed 15 times of the average annual output value of the three years prior to the requisition.

The standards for land compensation and resettlement subsidies for land requisitioned shall be determined by various provinces, autonomous regions and municipalities in reference to the land compensation and resettlement subsidies for cultivated land requisitioned.

The compensation rate for attachments and young crops on the land requisitioned shall be determined by various provinces, autonomous regions and municipalities.

Whereas the land compensation and resettlement subsidies paid according to the provisions of the second paragraph of this article are not enough to maintain the original level of living, the resettlement subsidies may be increased with the approval of the people's governments of provinces, autonomous regions and municipalities. But the combined total of land compensation and resettlement subsidies shall not exceed 30 times of the average output value of the three years prior to the requisition. (Land Administration Law of the People’s Republic of China, No. 47 article)

●Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation for land requisitioned and accept their supervision.

It is forbidden to embezzle or divert the land compensation and other related expenses. (Land Administration Law of the People’s Republic of China, No. 49 article)

●The term for the short-term use of land shall not usually exceed two years. (Land Administration Law of the People’s Republic of China, No. 57 Article)

●One rural household can own one housing site, with the area not exceeding the standards provided for by provinces, autonomous regions and municipalities.

Construction of rural houses should conform to the general plans for the utilization of land of townships (towns) and the original housing site and open spaces of villages should be used as much as possible for building houses. (Land Administration Law of the People’s Republic of China, No. 62 Article)

4.2.1.2 Summary of law framework on house relocation

●Relocation households should be compensated and resettled by removers, and fulfill physical relocation within the prescribed term. (Administrative Regulations on the Urban Houses Relocation, No. 4 Article)

●Removers should implement house relocation within the scope and term determined by the house relocation license. (Administrative Regulations on the Urban Houses Relocation, No. 9 Article)

●Compensation should be paid to the relocation households according to this statue unless removers dismantle unauthorized constructions and short-term buildings that have passed the approval term. Appropriate compensation should be given if short-term buildings are within the approval term. (Administrative Regulations on the Urban Houses Relocation, No. 22 Article)

●The way of compensating for relocation can be monetary compensation or exchange of the property right. (Administrative Regulations on the Urban Houses Relocation, No. 23 Article)

●The sum of monetary compensation shall be determined by the appraisal price of real estate market on the basis of location, purpose and building area of relocated houses. The specific measures shall be established by the people's governments of various provinces, autonomous regions and municipalities. (Administrative Regulations on the Urban Houses Relocation, No. 24 Article)

●As for the exchange of property right, removers and relocation households should calculate the compensation for relocated houses and the price of the exchanged houses, and settle the price difference in term of the 24th article of this statue. (Administrative Regulations on the Urban Houses Relocation, No. 25 Article)

●With respect to relocation of houses for public utility, removers should rebuild them in the light of relevant law framework as well as requirements of city planning, or pay monetary compensation. (Administrative Regulations on the Urban Houses Relocation, No. 26 Article)

●Removers should pay appropriate subsidies if the relocation of non-residential houses causes production halts and business cessation. (Administrative Regulations on the Urban Houses Relocation, No. 33 Article)

4.2.2 Summary of relevant statues and policies in Shanxi Province

4.2.2.1 Summary of statues and policies on land acquisition

●Land administration departments of the people’s governments of cities and counties together with related departments shall draw out a specific plan on compensating for requisitioned land and resettlement on the basis of the approved scheme of land acquisition. Moreover, this plan shall be proclaimed at townships and villages as sites of requisitioned land in order to hear opinions of the rural collective economic organizations and peasants whose land has been requisitioned. And then this plan shall be submitted to and obtain approval of the people’s governments of cities and counties, and finally shall be implemented by land administration departments of the people’s governments of cities and counties. The people’s governments at or above county level shall mediate disputations on compensation rate, if failed; the people’s government that approves land acquisition shall be the arbitration agency. The implementation of land acquisition plan shall not be influenced by disputations on compensation for requisitioned land and resettlement.

The units using the land should pay the sum of requisitioning land within three months starting from the approval date of plan on compensation for requisitioned land and resettlement. (Implementation Measures for Land Administration Law of the People’s Republic of China in Shanxi Province, No. 26 article)

●For the requisition of land, the units using land should pay compensation for land in term of following standards.

(i) For the requisition of capital farmland (such as garden, pound, lotus pool), the compensation shall be 6-8 times of the average output value of the three years prior to the requisition;

(ii) For the requisition of cultivated land except for capital farmland, the compensation shall be 6-9 times of the average output value of the three years prior to the requisition;

(iii) For the requisition of pasture, grassland and so on, the compensation shall be 7 times of the average output value of the three years prior to the requisition;

(iv) For the requisition of woodland, the compensation shall be paid according to relevant regulations;

(v) For the requisition of housing site, the compensation shall be paid according to compensation rate for cultivated land;

(vi) For the requisition of leisure area, wasteland, badlands, waste tidal land, the compensation shall be 3-6 times of the cultivated land’s average output value of the three years prior to the requisition in the village;

(vii) For the requisition of collectively owned land for productive use, such as threshing floor and drying yard, the compensation shall be paid according to compensation rate of their original purposes. (Implementation Measures for Land Administration Law of the People’s Republic of China in Shanxi Province, No. 27 article)

●For the requisition of land, the units using land should pay resettlement subsidies in term of following standards.

(i) For the requisition of capital farmland (such as gardens, pounds, and lotus pools), the subsidies shall be 5-6 times of the average output value of the three years prior to the requisition;

(ii) For the requisition of cultivated land except for capital farmland, the subsidies shall be 4-5 times of the average output value of the three years prior to the requisition;

(iii) For the requisition of pasture, grassland and so on, the subsidies shall be 5 times of the average output value of the three years prior to the requisition;

(iv) For the requisition of woodland, the compensation shall be paid according to relevant regulations;

The maximum resettlement subsidies per hectare of land requisitioned prescribed by preceding paragraphs shall not exceed 15 times of the average annual output value of the three years prior to the requisition.

As for the requisition of housing site, leisure area, wasteland, badlands, waste tidal land and threshing floor, no resettlement subsidies shall be paid. (Implementation Measures for Land Administration Law of the People’s Republic of China in Shanxi Province, No. 28 article)

● The cultivated land’s average annual output value of the three years prior to the land requisition should be calculated according to following methods:

(i) Persons whose land has been requisitioned shall report planting conditions of the past three years to the villagers committee;

(ii) The people’s government of townships and the villagers committee at the site or villages where lands have been requisitioned shall make an announcement about the reported planting conditions and hear peasants’ opinions;

(iii) The people’s government of townships and the villagers committee shall verify reports according to opinions of peasants;

(iv) The land administration department of the people’s government at or above the county level at the site where lands have been requisitioned, shall calculate the output, production value and average annual output value of the three years prior to the land requisition on the basis of verified planting conditions, the corresponding statistical forms of the statistical department at same level, and the corresponding prices of crops.

As for other types of land, the calculation for average annual output value of the three years prior to the land requisition shall refer to the preceding paragraph. (Implementation Measures for Land Administration Law of the People’s Republic of China in Shanxi Province, No. 29 article)

●According to the 27th and 28th articles under this measure, resettlement subsidies can be increased for displaced peasants whose living standard can’t be kept as before, even though they are provided with land compensation and resettlement subsidies upon approval of the people’s government of Shanxi province. However, the maximum sum of land compensation and resettlement subsidies shall not exceed 30 times of the average annual output value of the three years prior to the requisition. (Implementation Measures for Land Administration Law of the People’s Republic of China in Shanxi Province, No. 30 article)

● For the requisition of land, the units using land should pay compensation for attachments and young crops on the requisitioned land in term of following standards.

(i) For attachments like buildings and constructions, the compensation shall be converted into money, or attachments with same quantity and quality;

(ii) For young crops, the compensation shall not exceed the production of one season;

(iii) For transplanted trees, the compensation shall include labor cost and expense for seeding loss; for irremovable trees, the compensation shall be evaluated according to relevant regulations.

(iv) For fish, lotus root and pasturage, and etc., the compensation shall be evaluated according to relevant regulations.

No compensation shall be paid for trees and other attachments which are planted and built in a rush after the announcement of compensation plan, as well as for buildings and other facilities on the unlawfully occupied land. (Implementation Measures for Land Administration Law of the People’s Republic of China in Shanxi Province, No. 31 article)

4.2.2.2 Summary of statues and policies on house relocation

●Removers are entitled to carry out relocation only on the condition of obtaining the license of houses relocation in accordance with the law. (Statues for Urban Houses Relocation in Shanxi Province, No. 7 Article)

●Removers should sign a written contract on houses relocation, compensation and resettlement with relocation households in accordance with the law.

As for the relocation of rented houses, removers should sign a written contract on houses relocation, compensation and resettlement with relocation households and renters.

Removers should put on records at houses relocation administration within 15 days from the date on which the contract on houses relocation, compensation and resettlement is signed. (Statues for Urban Houses Relocation in Shanxi Province, No. 14 Article)

●In carrying out monetary compensation, the contract on houses relocation, compensation and resettlement should expressly specify the following:

(i) Some basic conditions like the site, building area, structural type, story, type, direction, and the way of obtaining the right to the use of land;

(ii) Sum of the monetary compensation, the payment method and term;

(iii) Term of physical relocation;

(iv) Moving subsidy and other compensation as well as payment method and term;

(v) Solutions to breach of contract and controversy;

(vi) Other items considered to be specified by parties. (Statues for Urban Houses Relocation in Shanxi Province, No. 15 Article)

●In carrying out exchanging the property right, except for the foregoing 6 items, the contract on houses relocation, compensation and resettlement should expressly specify the following:

(i) The site, building area, structural type, story, type, direction, and other conditions of houses of resettlement;

(ii) Measures of physical relocation and transition as well as term of transition period;

(iii) The site, building area, structural type, story, water, electricity, gas, heater and other living facilities of houses during transition period;

(iv).The way and time of calculating the price difference of property right exchange;

(v) Payment method and term of temporary resettlement subsidies; (Statues for Urban Houses Relocation in Shanxi Province, No. 16 article)

The removers should carry out compensation and resettlement for relocation households, whereas, who should fulfill physical relocation within the prescribed period.

The compensation for relocation can be monetary compensation or the exchange of property right. Relocation households can choose other ways of compensation in accordance with the law unless otherwise stipulated by the state.

The sum of monetary compensation and the price of the exchanged house shall be negotiated and determined by removers and relocation households on the basis of location, usage, structural type, building area, decoration and fitment, and so on, if failed; they shall be determined by the appraisal price of real estate market. The evaluating method of price for houses relocation shall be established by the people’s government of Shanxi province. (Statues for Urban Houses Relocation in Shanxi Province, No. 20 Article)

●No compensation for the following cases:

(i) Unauthorized constructions and the short-term buildings that have passed the approval term.

(ii) Newly-built houses, expanding and rebuilding parts of houses after the confirmation and announcement of relocation scope. (Statues for Urban Houses Relocation in Shanxi Province, No. 21 Article)

●The building area and usage of the relocated house shall be affirmed by the ownership certificate, if which has no records about houses’ usage, which then shall be determined by the house ownership registration administration department of city and county (township) according to legal and effective documents provided by city planning administration department. (Statues for Urban Houses Relocation in Shanxi Province, No. 22 Article)

●Removers should pay appropriate compensation for proprietors if the relocation of non-residential houses causes production halts and business cessation, or for relocation households, who have obtained business license in accordance with law before the issue of relocation license for their residential houses in the scope of relocation, on the basis of the running term of business and actual taxpaying. (Statues for Urban Houses Relocation in Shanxi Province, No. 23 Article)

●For the exchange of the property right of relocation households who enjoy the subsistence allowances for the urban poor and only have one relocated residential house with the size of less than 45 ㎡, removers should provide them with separate flats exceeding 45 ㎡ as houses for resettlement. Price difference shall not be settled for the area within 45 ㎡ of the house for resettlement. With respect to the price of left areas, it will be settled by the price of real estate market. (Statues for Urban Houses Relocation in Shanxi Province, No. 28 Article)

●In carrying out monetary compensation for relocated houses, removers should pay relocation households resettlement compensation as well as moving subsidy, or compensate moving subsidy for renters of relocated houses.

In carrying out the exchange of the property right of relocated houses, removers should pay moving subsidy for relocation households or renters, who will be paid moving subsidy again when moving from temporary houses to houses for resettlement. (Statues for Urban Houses Relocation in Shanxi Province, No. 32 Article)

●Standards for moving subsidy and temporary resettlement subsidies shall be prescribed by the people’s government of Shanxi province. (Statues for Urban Houses Relocation in Shanxi Province, No. 33 Article)

●Relocated houses shall be evaluated by institutions qualified for evaluating real estate price according to guiding price of houses relocation. (Statues for Urban Houses Relocation in Shanxi Province, No. 36 Article)

●After signing the contract on relocation, compensation and resettlement, if relocation households or renters refuse physical relocation within the prescribed period, removers shall apply for arbitrage to arbitration commission, or go to the People’s Court and apply for carrying out relocation in advance during the period of lawsuit in accordance with the law. (Statues for Urban Houses Relocation in Shanxi Province, No. 42 Article)

●In case that removers cannot make an agreement on relocation, compensation and resettlement with relocation households, or with relocation households as well as renters, parties concerned can apply for arbitrage to houses relocation administration at the site where houses are relocated, or apply for arbitrage to the people’s government of city, county (township) if the houses relocation administrative department is the relocation household. (Statues for Urban Houses Relocation in Shanxi Province, No. 43 Article)

●The people’s government of city, county (township) should make an announcement about guiding price for the appraisal of relocated house at different locations at least once a year on the basis of the local replacement cost for various houses and the real estate market’s price.

The construction (real estate) department together with the price department under the people’s government of city, county (township) work out the guiding price for evaluating relocated houses, and then proclaim in public after getting approval from the people’s government of city, county (township). (Appraisal Approaches to Compensation Price for Urban Houses Relocation in Shanxi Province, No. 8 Article)

●Evaluation of the relocated houses includes classification appraisal and individual household appraisal.

Classification appraisal is firstly classifying relocated houses in the relocation scope based on factors like location, structure and usage, and then determining the average market price according to the classification.

Individual household appraisal is determining the market price of relocated houses on the basis of location, usage, structure and building area, together with story, direction and the brand-new degree, etc. (Appraisal Approaches to Compensation Price for Urban Houses Relocation in Shanxi Province, No. 9 article)

●Payment of moving subsidy and temporary resettlement subsidies is based on the building area recorded in the house ownership certificate and documents of relocated houses. (Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, No. 3 Article)

●In carrying out monetary compensation for relocated houses, subsidies of 6-month for temporary resettlement shall be paid in one-time; in carrying out the accelerated resettlement, subsidies for temporary resettlement shall be paid according to the contract. (Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, No. 4 Article)

●In carrying out the relocation of rented houses, moving subsidy and temporary resettlement subsidies shall be paid to relocation households, if who have terminated the leasehold relationship with renters, or have resettled the renters. Otherwise, moving subsidy and temporary resettlement subsidies shall be paid to renters if relocation households cannot make an agreement on ending leasehold relationship with renters. (Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, No. 5 Article)

●For the relocation of residential houses, standards for paying moving subsidy in one-time shall be as followings:

(i) For the relocated house with building area of less than or exceeding 30 ㎡ (including 30 ㎡, same as follows) in the city, moving subsidy of 200-300 Yuan or 7-10 Yuan per square meter shall be paid in one-time respectively;

(ii) For the relocated house with building area of less than or exceeding 30 ㎡ at the county (township), moving subsidy of 150-200 Yuan or 5-7 Yuan per square meter shall be paid in one-time respectively;

(iii) For the relocated house with building area of less than or exceeding 30 ㎡ at the town, moving subsidy of 90-200 Yuan or 3-5 Yuan per square meter shall be paid in one-time respectively; (Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, No 6 Article)

●For the relocation of non-residential houses, standards for paying moving subsidy in one-time shall be as followings:

(i) Subsidies of 15-20 Yuan/㎡, 20-25 Yuan/㎡, 10-12 Yuan/㎡ and 15-20 Yuan/㎡ shall be paid for relocated houses for commercial business, workshop, offices and storages respectively in the city.

(ii) Subsidies of 10-15 Yuan/㎡, 15-20 Yuan/㎡, 7-10 Yuan/㎡ and 10-15 Yuan/㎡ shall be paid for relocated houses for commercial business, workshop, offices and storages respectively at the county (township).

(iii) Subsidies of 7-10 Yuan/㎡, 10-15 Yuan/㎡, 5-7 Yuan/㎡ and 7-10 Yuan/㎡ shall be paid for relocated houses for commercial business, workshop, offices and storages respectively at the town. (Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, No. 7 Article)

●In carrying out monetary compensation and the exchange of the property right of the complete department, moving subsidy shall be paid according to the 6th and the 7th articles under this approach; In carrying out the exchange of the property right of the forward delivery housing, relocation subsidies shall be paid twice according to the 6th and the 7th articles under this approach. (Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, No. 8 Article)

●In case of relocation households who spend the transition period for themselves, standards for paying short-term resettlement subsidies (transition subsidy) shall be as followings:

(i) For relocated houses with the building area of less than or exceeding 30 ㎡ in the city, subsidies of 120-200 MRB or 4-6 Yuan / ㎡ for short-term resettlement shall be paid monthly respectively.

(ii) For relocated houses with the building area of less than or exceeding 30 ㎡ at the county (township), subsidies of 90-150 MRB or 3-4 Yuan/㎡ for short-term resettlement shall be paid monthly respectively.

(iii) For relocated houses with the building area of less than or exceeding 30 ㎡ at the town, subsidies of 60-100 MRB or 2-4 Yuan / ㎡ for short-term resettlement shall be paid monthly respectively. (Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, No. 9 Article)

●As for the relocation of non-residential houses for business and production, or residential houses which have got business licenses before the issue of relocation license in accordance with the law, removers should pay economic compensation for relocation households on the basis of last year’s rate-paying after the announcement of relocation, which includes compensation for wage and business. The sum of business compensation is calculated according to actual rental. No compensation shall be given if relocation households pay no tax.

No compensation shall be paid to relocation households who have already obtained business license, but still haven’t paid tax, or have ended operation and business before the announcement of relocation. (Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, No. 10 Article)

●For the relocation of non-residential houses for business, which causes business halts, the compensation rate shall be:

Wage compensation shall be paid to employees in one-time according to contracts of labor, which are put on records at employment and social security departments, and the standard of last year’s per capita monthly wage of this enterprise. Business compensation shall be paid in one-time based on the last year’s monthly rate paying.

The term of compensation shall not exceed 6 months if the relocation completely leads to business halts; the term of compensation shall not exceed 3 months if the relocation partly leads to business halts. (Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, No. 11 Article)

●For the relocation of non-residential houses of production, which causes production stop, the compensation rate shall be:

Wage compensation shall be paid to employees in one-time according to contracts of labor, which are put on records at employment and social security departments, and the standard of last year’s per capita monthly wage of this enterprise. Business compensation shall be paid in one-time based on the last year’s monthly rate paying.

The term of compensation shall not exceed 6 months if the relocation completely leads to business halts; the term of compensation shall not exceed 3 months if the relocation partly leads to business halts; the term of compensation shall not exceed 6 months and the wage compensation shall be paid according to the half sum prescribed in the No. 11 article if the relocation households are enterprises with unusual production. (Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, No. 12 Article)

●For the relocation of residential houses which have obtained business licenses in accordance with the law before the issue of relocation license, the compensation rate shall be:

Wage compensation shall be paid to employees in one-time according to contracts of labor, which are put on records at employment and social security departments, and the standard of last year’s per capita monthly wage of this enterprise. No wage compensation shall be given to those who haven’t signed labor contracts.

Business compensation shall be paid in one-time based on the last year’s monthly rate-paying. No compensation shall be paid if relocation households haven’t pay tax.

The term of compensation shall not exceed 6 months if the relocation completely leads to business halts; the term of compensation shall not exceed 3 months if the relocation partly leads to business halts. (Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, No. 13 Article)

●For the relocation of non-residential houses for rent, which are under a contract for rent and put on records at real estate management department at the site where houses are relocated, the compensation rate for relocation households or renters shall be:

(i) The economic compensation equivalent to 3-month rent determined in the contract shall be paid to relocation households in one-time.

(ii) The economic compensation shall be paid to renters according to the compensation rate prescribed by No. 7, 10, 11 and 12 articles under this method.

No compensation shall be given to relocation households and renters if they haven’t signed a contract or put on records at real estate management department. (Temporary Approaches to Assistance and Compensation Rate for Urban Houses Relocation in Shanxi Province, No. 14 article)

4.2.3 Summary of relevant statues and policies in Taiyuan City

●Compensation should be paid to the relocation households according to this statue unless removers relocate unauthorized constructions and short-term buildings that have passed the approval term. Appropriate compensation should be given if short-term buildings are within the approval term. (Administrative Regulations on the Urban Houses Relocation in Taiyuan City, No. 20 article)

●The compensation for relocation shall mainly be monetary compensation or the exchange of property right. Removers shall pay monetary compensation for the relocation of attachments of houses which are not used for public utility. (Administrative Regulations on the Urban Houses Relocation in Taiyuan City, No. 21 article)

●The building area and usage of the relocated house shall be affirmed by records of the ownership certificate issued by the city’s real estate management department , if which hasn’t indicated or recorded the usage, which then shall be determined by the house property right records or planning department respectively. (Administrative Regulations on the Urban Houses Relocation in Taiyuan City, No. 22 article)

●The sum of monetary compensation shall be determined by the appraisal price of real estate market according to location, usage, structure, and building area of relocated houses. (Administrative Regulations on the Urban Houses Relocation in Taiyuan City, No. 23 article)

●The appraisal of houses relocation should be carried out by real estate appraisal institutes at the corresponding levels. Removers should submit appraisal reports to city’s real estate management department for records.

The time for the price appraisal shall be determined by the date on which the relocation license shall be approved and issued. (Administrative Regulations on the Urban Houses Relocation in Taiyuan City, No. 24 article)

●As for the relocation of state-owned houses directly managed by governments or voluntarily operated by units, renters enjoy the priority to purchase houses, and also shall be compensated and resettled if they have already paid to property owners of houses. Property owners who carry out the exchange of property right can resettle renters in other places within planed cities, and also provide them with residential houses that are not smaller than former houses. Renters who enjoy subsistence allowances for the poor and cannot settle residential problem by themselves should be resettled appropriately. (Administrative Regulations on the Urban Houses Relocation in Taiyuan City, No. 28 article)

●Removers should pay moving subsidy to relocation households or renters. During the transition period, removers should pay short-term resettlement subsides for relocation households or renters who arrange dwellings for themselves, but no subsidies shall be paid if they accept the houses for turnover offered by removers. (Administrative Regulations on the Urban Houses Relocation in Taiyuan City, No. 34 article)

●Removers should pay removal subsides calculated by the building area of houses with licenses for relocation households who have to move from the relocated houses. For residential houses, the compensation shall be 10 YUAN per square meter. For non-residential houses such as offices, houses for business as well as storage for production and business, the compensation shall be 10 Yuan/㎡, 20 Yuan/㎡, and 25 Yuan/㎡ respectively. Notice on Relevant Problems as Short-term Resettlement Allowances and Moving subsidy for Urban Houses Relocation, shall be put in force on the 1st in May, 2001.

4.2.4 The World Bank’s relevant policies on involuntary resettlement

Policies of involuntary resettlement are specified by OP4.12 and BP4.12 which are operational polices and procedures of World Bank on involuntary resettlement, of which main articles related to this project include:

●Policy Objectives for Resettlement

1. Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs.

2. Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs.

●Measures to Achieve Objectives

3. The resettlement plan or resettlement policy framework includes measures to ensure that the displaced persons are:

(i) Informed about their options and rights pertaining to resettlement;

(ii) Consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and

(iii) Provided prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project.

4. If it includes physical relocation, the resettlement plan or resettlement policy framework includes measures to ensure that the displaced persons are:

(i) Provided assistance (such as moving subsidy) during physical relocation; and

(ii) Provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, advantages of location, and other factors is at least equivalent to the advantages of the old site.

5. Where necessary to achieve the objectives of the policy, the resettlement plan or resettlement policy framework also includes measures to ensure that displaced persons are:

(i) Offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; and

(ii) Provided with development assistance such as land preparation, credit facilities, training, or job opportunities.

●Particular attention is paid to the needs of vulnerable groups among those displaced, especially those below the poverty line, the landless, the elderly, women and children, indigenous peoples, ethnic minorities, or other displaced persons who may not be protected through national land compensation legislation.

●Preference should be given to land-based resettlement strategies for displaced persons whose livelihoods are land-based. These strategies may include resettlement on public land, or on private land acquired or purchased for resettlement. Whenever replacement land is offered, displaced persons are provided with land for which a combination of productive potential, advantages of location, and other factors is at least equivalent to the advantages of the land taken. If land is not the preferred option of the displaced persons, the provision of land would adversely affect the sustainability of a park or protected area, or sufficient land is not available at a reasonable price, non-land-based options built around opportunities for employment or self-employment should be provided in addition to cash compensation for land and other assets lost. The lack of adequate land must be demonstrated and documented to the satisfaction of the Bank.

●Payment of cash compensation for lost assets may be appropriate where (a) livelihoods are land-based but the land taken for the project is a small fraction of the affected asset and the residual is economically viable; or (b) active markets for land, housing, and labor exist, displaced persons use such markets, and there is sufficient supply of land and housing; or (c) livelihoods are not land-based. Cash compensation levels should be sufficient to replace the lost land and other assets at full replacement cost in local markets.

●Displaced persons and their communities, and any host communities receiving them, are provided timely and relevant information, consulted on resettlement options, and offered opportunities to participate in planning, implementing, and monitoring resettlement. Appropriate and accessible grievance mechanisms are established for these groups.

●In new resettlement sites or host communities, infrastructure and public services are provided as necessary to improve, restore, or maintain accessibility and levels of service for the displaced persons and host communities. Alternative or similar resources are provided to compensate for the loss of access to community resources (such as fishing areas, grazing areas, fuel, or fodder).

●Patterns of community organization appropriate to the new circumstances are based on choices made by the displaced persons. To the extent possible, the existing social and cultural institutions of displaced persons and any host communities are preserved and displaced persons’ preferences with respect to relocating in preexisting communities and groups are honored.

4.3 Polices on Resettlement for This Project

According to the above mentioned national and local law framework as well as related policies of the World Bank, and by considering the practical situation of areas affected by the Urban Transport Project in Taiyuan city, and based on completely negotiating with the affected masses, the resettlement office establish following policies suited for this project on resettlement of displaced persons. After obtaining authorization from the World Bank and approval from the People’s Government of Shanxi Province and that of Taiyuan city, Resettlement Action Plan shall be implemented in the light of following policies.

4.3.1 Methods for the acquisition of state-owned land

The compensation will be provided for the acquisition of the state-owned land used for construction and state-owned agricultural land. The special methods are as follows: with respect to the state-owned land used for construction, the compensation for the land with buildings will be included in the compensation price of buildings and the land compensation will not be listed separately; with respect to the state-owned land used for construction obtained with compensation, the compensation for the land without building will be provided at RMB 240 Yuan per square meter. The compensation for state-owned agricultural land will be referenced to the compensation price of collectively-owned land and be provided at RMB 50,000 Yuan per mu.

4.3.2 Compensation methods for the acquisition of collectively-owned land

With respect to the acquisition of collectively-owned land used for construction obtained with compensation, the compensation for the land without building will be provided at RMB 75 Yuan per square meter.

With respect to the acquisition of collectively-owned cultivated land, the compensation for the land and young crops will be provided at RMB 50,000 Yuan per mu. If the village collectivity exchanges land for the contractor of agricultural land requisitioned, the compensation funds will be subject to the unified use of the village collectivity. If no land is exchanged, 70% of the compensation funds will be paid to the contractor of agricultural land requisitioned.

4.3.3 Compensation and resettlement for the relocation on state-owned land

In the relocation scope of the project, the person with valid and effective license suffering from relocation may freely select the resettlement mode from monetary compensation and exchange of property right. If monetary compensation is selected, no house will be arranged.

Determination of use property and area of the house to be relocated: private property will be subject to the certificate for housing ownership issued by relevant administration; public property and institution property will be subject to the properties and areas indicated in the certificates for the lease of house.

Determination of non-domestic house: refer to the house purpose stated in the certificate for house ownership. If the house purpose is not stated in the certificate for house ownership, be subject to the record in property right archives or the planning permits of urban planning administration and local administration.

4.3.3.1 Monetary compensation

Monetary compensation rate and reference

In order to determine the amount of monetary compensation for the house to be relocated, Taiyuan Financial Assessment Center and Taiyuan Construction Budget and Settlement Auditing Center undertake evaluation of dwelling houses in the relocation scope according to relevant national policies and codes concerning real estate valuation and determine compensations prices of various building to the relocated for the project under the principle of replacement cost.

Compensation prices: 2300 Yuan/㎡ for frame construction, 1800 Yuan/㎡ for brick-concrete storied building, 1600 Yuan/㎡ for single-story brick-concrete building, 1500 Yuan/㎡ for brick-wood structure, and 1300 Yuan/㎡ for earth-wood structure.

Amount and calculation formula of monetary compensation

1) Private dwelling house

Amount of monetary compensation = Property building area of house to be relocated ×Unit price of market evaluation (Yuan/㎡)

2) If monetary compensation is provided for public-property dwelling house (public-property dwelling house under the direct administration of the municipality and that under the administration of the institution itself), 30% of monetary compensation will be paid to the relocate (property owner), and 70% will be paid to the leaseholder (user).

Amount of monetary compensation = Property building area of house to be relocated ×Unit price of market evaluation×70%

3) Non-domestic house

The calculation formula of the amount of monetary compensation for non-domestic house is the same as the above.

If the property owner and the user of non-domestic house are different persons, 60% of monetary compensation will be paid to the user (leaseholder), and 40% will be paid to the property owner (relocatee).

4) For the relocation of leased house, if the agreement between the relocatee and the leaseholder cannot be achieved on canceling leasehold relation or the house involves dispute, monetary compensation will not be provided, and the exchange of property right will be carried out by the relocater for the relocatee.

5) For the relocation of the house with unclear property, the relocation will be implemented upon the examination and approval of the house relocation administration. Before the relocation, proof preserving should be handled in the notary department.

6) For the relocation of the house with mortgage rights, follow national laws and regulations concerning guarantee.

7) For the relocation of the house used for public-welfare undertaking, reconstruction will be carried out in accordance with relevant laws and regulations and the requirements of urban planning, or monetary compensation will be provided. The compensation price is subject to the evaluation.

4.3.3.2 Exchange of property right

●The high-rise building subject to the exchange of property right is of frame construction, and the multi-storied building is of brick-concrete structure. The types of resettlement houses include 50㎡, 60㎡, 70㎡, 80㎡, 90㎡ and 100㎡.

●If the exchange of property right is carried out for the relocation of private dwelling house, provided that the building area of resettlement house equals the building area of property right of relocated house, the price of structural difference will not be settled if the structures are the same, and the price difference may be settled according to individual evaluation price if the structures are different.

●The preference of 10% will be provided for the resettlement house on the basis of property building area of the house to be relocated, and the relocatee pays expenses at 1800 Yuan/㎡ for high-rise building and 1500 Yuan/㎡ for multi-storied building.

● If the relocatee require increasing resettlement area, the area increased less than 10㎡ (including 10㎡) will be settled at 2000 Yuan/㎡; if the area increased is more than 10㎡ and less than 20㎡ (including 20㎡), the construction cost will be settled at 2300 Yuan/㎡; the extra part more than 20㎡ will be settled as per the price of commercial housing at 3200 Yuan/㎡.

That is, building area of the house to be resettled = property building area of the house to be relocated ×110%.

●For the relocation of public-property and institutional-property dwelling houses, in principle, the property right will be bought out. That is, for the part of property building area of the original house, after the leaseholder buys the property right of the house at 30% of market evaluation price, the exchange of property right will be carried out. For the other part, the method for the expense settlement is the same as private dwelling house.

● For the relocation of non-domestic house, the resettlement will be carried out by means of one relocation and one return. The exchange of property right may be carried out for the right owner. The settlement between the prices of relocated house and resettlement house should be subject to the individual evaluation price. The part exceeding the resettlement area will be settled at the price of commercial housing, 6000 Yuan/㎡.

4.3.4 Compensation and resettlement for the relocation on collectively-owned land

For the relocation household on collectively-owned land, both resettlement modes of monetary resettlement and exchange of property right are provided for free selection.

4.3.4.1 Monetary resettlement

In order to determine the amount of monetary compensation for the house to be relocated on collectively-owned land, Taiyuan Financial Assessment Center and Taiyuan Construction Budget and Settlement Auditing Center undertake evaluation of dwelling houses in the relocation scope according to relevant national policies and codes concerning real estate valuation and obtain evaluation prices as follows:

1800 Yuan/㎡ for brick-concrete storied building, 1600 Yuan/㎡ for single-story brick-concrete building, 1500 Yuan/㎡ for brick-wood structure, and 1300 Yuan/㎡ for earth-wood structure, and 300 Yuan/㎡ for basement.

The amount of monetary compensation is calculated according to the following formula:

Amount of monetary compensation = Property building area of house to be relocated ×Unit price of market evaluation (Yuan/㎡)

4.3.4.2 Exchange of property right

According to the documents provided by the office of Coordination and Leading Group for the Reform of Village in City of Taiyuan, 14 villages (Dadongliu Village, Xiliu Village, Xiaodongliu Village, Xiangtang Village, Xiaozaogou Village, Daochanggou Village, Baergou Village, involved in land acquisition and relocation for the project, San’ershu Village, Haojiagou Village, Haozhuang Village, Wangjiafeng Village, Dianpo Village, Longbao Village and Dongtaibao Village) and Xudong Village and Dongshe Village affected by linked projects have been brought into the reform plan of village in city of Taiyuan. For the relocation of the houses in these villages, except monetary resettlement freely selected by the villages, unified planning and the construction of resettlement houses will be carried out.

If the building area of resettlement house equals the building area of licensed house to be relocated, the price of difference will not be settled; the part exceeding the original building area will be settled at the market price.

4.3.5 Resettlement of affected houses and shops of enterprises and institutions

For the compensation and resettlement of houses and shops of enterprises and institutions to be relocated, multiple measures will be provided for free selection. Resettlement modes include: monetary compensation and rehabilitation nearby; using compensation funds for purchasing land freely and overall moving; the government assists in providing land for building, and the enterprise recovers itself independently.

The monetary compensation rate for the relocated houses of enterprises and institutions as well as shops shall be evaluated and put forward by the qualified real estate appraisal company, and then shall be determined by the resettlement office after negotiating with affected enterprises and institutions.

Evaluation price of non-domestic office occupancy: 1100 Yuan/㎡ for frame construction, 900 Yuan/㎡ for brick-concrete structure, 800 Yuan/㎡ for brick-wood structure, and 600 Yuan/㎡ for earth-wood structure.

Evaluation price of business occupancy: 2680 Yuan/㎡ for framed storied building, 2380 Yuan/㎡ for brick-concrete storied building, 2030 Yuan/㎡ for single-story brick-concrete building, 1930 Yuan/㎡ for brick-wood structure, and 1700 Yuan/㎡ for earth-wood structure.

Storage occupancy for production and business: 1100 Yuan/㎡ for frame construction, 900 Yuan/㎡ for brick-concrete structure, and 800 Yuan/㎡ for brick-wood structure.

Loss of salary and business caused by the relocation of enterprises and institutions as well as shops shall be determined by the resettlement office after negotiating with the displaced. Wage compensation shall be determined according to personnel scroll which is about the enrolled workers (at work and paying labor insurance) of the relocated units and is offered by the employment and social security departments. Business compensation shall be paid based on the last year’s monthly rate-paying. The term of compensation shall not exceed 6 months if the relocation completely leads to business halts; the term of compensation shall not exceed 3 months if the relocation partly leads to business halts.

The changed compensation caused by housing decoration or other factor should be appraised and determined by the real estate appraisal company on the basis of market’s principles.

Houses, which are registered as residential houses on the property right certificate, but are used for business, shall be compensated according to the compensation standard of residential houses, and also shall be paid 3-month business loss compensation on the basis of rate paying attestation.

4.3.6 Moving subsidy and transition subsidy

1. Moving subsidy

1) Moving expenses for dwelling house shall be paid to the relocatee at 10 Yuan/㎡ according to the property building area of the house to be relocated;

2) Moving subsidy for non-domestic house: 10 Yuan/㎡ for office occupancy; 20 Yuan/㎡ for business occupancy, and 25 Yuan/㎡ for storage occupancy for production and business.

3) If the house to be relocated accepts monetary compensation, moving subsidy will be paid once; if the house to be relocated accepts independent transition, moving subsidy will be paid twice.

2. Transition subsidy

1) If the dwelling house to be relocated accepts exchange of property right, during the transition period, the transition subsidy will be paid at 10 Yuan/㎡/month according to the property building area of the house to be relocated. If the transition period excel 24 months, the rate will be 20 Yuan/㎡/month.

2) If the non-domestic house to be relocated accepts exchange of property right, during the transition period, the salary compensation for the employees will be determined according to the personnel on the payroll recorded in labor and social security department, and six-month salary compensation will be paid once as per monthly salary per capita of the institution in the previous year.

3) Business compensation: if the relocation causes production and business suspension, six-month business compensation will be paid once as per monthly average taxes in the previous year; if partial production and business suspension is caused, three-month business compensation will be paid once; if the production has stopped before issuing the relocation notice, no compensation will be provided.

4) For monetary compensation, six-month temporary resettlement allowance will be paid once, 10 Yuan/㎡ for dwelling house and 20 Yuan/㎡ for non-domestic house.

5) The shop leaseholder may obtain moving subsidy and finishing compensation determined after evaluation. For the shop newly finished after relocation, under the same condition, the original leaseholder enjoys the priority of accepting lease.

4.3.7 Resettlement of vulnerable groups

With respect to the vulnerable groups determined, the project office will provide the security measures as follows:

●According to the survey, if the family only has one dwelling house, the life is poor indeed, and the public has no objection after issuing public announcement, the dwelling house with building area not less than 50㎡ will be provided. If the building area of resettlement house is less than 50㎡, the price of structure difference and the expenses for exceeding resettlement area will not be settled, and the charging rate of the expenses for exceeding 50㎡ is the same as private dwelling house.

●The resettlement office sets up the funds of RMB 2 million Yuan for helping vulnerable groups according to specific needs during the resettlement course

●For area, type and location of resettlement house, the family of vulnerable group has priority in selection.

●Resettlement organizations at all levels are responsible for organization manpower to assist in the moving of the families of vulnerable groups.

4.3.8 Resettlement for the relocation of illegal structures

The requirements of involuntary resettlement policies of the World Bank are taken into full consideration, and for illegal structures to be dismantled, classified compensation will be provided according to different situations. The concrete methods are as follows:

●If buildings without licenses are used as residential houses and relocation households have no other places for living, the relocation compensation shall be paid according to that of buildings with license.

●For the buildings other than the previous clause, the compensation will be provided as per construction costs, and the concrete standards are: 600 Yuan/㎡ for brick-concrete structure, 400 Yuan/2 for brick-concrete structure, 400 Yuan/㎡ for brick-wood structure and 200 Yuan/㎡ for simple structure.

4.3.9 Compensation for affected infrastructures and attachments to the ground

As for public facilities and attachments to the ground involved in relocation and moving, the appraisal shall be carried out according to replacement cost. Besides, removers and the affected people should negotiate about and reach an agreement on the compensation rate with reference to that of similar projects. The specific compensation rate is:

1. For the basement with the height more than 2.2m (including 2.2m), the compensation will be provide as per 1/2 of compensation rate of the house of the same structure; for the basement with the height less than 2.2m, the compensation will be provided at 500 Yuan/㎡, and its area will not be brought into the area of resettlement house.

2. Compensation for house finishing: the graded compensation will be provided according to finishing degree and aging degree. For grade-one brand-new house, the compensation will be provided at 200 Yuan/㎡; for grade-two ninety percent new house, the compensation will be provided at 180 Yuan/㎡, by parity of reasoning.

3. RMB 1000 Yuan for each cave house, 50 Yuan/㎡ for brick wall, and 30 Yuan/㎡ for adobe brick wall.

4. W.C.: RMB 100 Yuan for each brick-wood adobe brick W.C. with cover, RMB 300 Yuan for each simple W.C. without cover, and RMB 200 Yuan for other kind of W.C.

5. RMB 500 Yuan for each gate tower, RMB 300 Yuan for each screen wall, and 15 Yuan/㎡ for terrace.

6. 1000 Yuan/m for well.

7. 30 Yuan/㎡ for greenhouse, RMB 30 Yuan for each timber tree with diameter of 10cm, by parity of reasoning; RMB 20 Yuan for each young tree, RMB 200 Yuan for fruit tree that can bear fruit, and RMB 60 Yuan for fruit tree that cannot bear fruit.

8. RMB 150 Yuan for each telephone, RMB 600 Yuan for each internet accession, and RMB 500 Yuan for each closed circuit.

4.4 Policies on the Resettlement of linked projects

Determined by the Taiyuan Urban Transport Project office, resettlement policies and various compensation rates for extending sections of Waliu road and Taihang road will be implemented completely according to that of the subprojects of North Mid Ring, Taihang Road and public transport.

5. Resettlement Compensation Rates

On the basis of deep survey and research, various kinds of compensation rates listed in the Resettlement Action Plan, were established after full negotiation with the affected units, persons and relevant local governmental departments of Taiyuan City according to relevant laws and regulations in the People’s Republic of China and Shanxi Province and involuntary resettlement policy of the World Bank, aiming to make the displaced persons to retrieve and improve their living standard after resettlement in a short period.

5.1 Basis of Establishment of Compensation Rates

5.1.1 Basis of establishment of land compensation rates

According to Land Law of the People’s Republic of China and Regulations for the Implementation of Land Law, compensation rates of requisition land constitute three sections, namely, land compensation, resettlement subsidy and compensation for young crops. According to relevant laws and regulations in Land Management Law of the People’s Republic of China and Methods of Land Management Law of the People’s Republic of China Implemented by Shanxi Province of Shanxi province, the first three compensations need to be made sure the average production value of previous three years at first and then decide a reasonable compensation multiple to calculate.

According to the abovementioned policies, the Resettlement Office selects the cultivated land with the highest output value in affected region, refers to per unit area yield publicized by Taiyuan Statistics Bureau and grain price in the market, and calculates compensation rates for land acquisition as per the highest multiple (30 times) of annual output value in each region.

Table 5-1 Compensation rates for land acquisition calculated as per the highest multiples (30 times) of average annual output value

|Affected region |Per unit area yield |Unit price (Yuan/kg) |Output value (Yuan) |Times |Compensation amount |

| |(kg) | | | |(Yuan) |

|Xiaodian District |388.00 |2.1 |814.8 |30 |24444 |

|Yingze District |335.20 |2.1 |703.92 |30 |21117.6 |

|Xinghualing District |346.73 |2.1 |728.14 |30 |21844.2 |

|Jiancaoping District |359.13 |2.1 |754.18 |30 |22625.4 |

|Wanbolin District |371.40 |2.1 |779.94 |30 |23398.2 |

|Jinyuan District |393.27 |2.1 |825.86 |30 |24775.8 |

Seen from the results in Table 5-1, among compensation rates for land acquisition calculated according to the regulations of the current land law, the highest is RMB 24776 Yuan.

No. 28 Document issued by the State Council on Oct 21st, 2004 states that the peoples government of each province, autonomous region and municipality directly under the Central Government should stipulate and publicize unified annual output value standard and district comprehensive land price for land acquisition of each city or county. The Resettlement office of Taiyuan Urban Transport Project knows that the Land and Resources Departments of Shanxi Province and Taiyuan City have measured and established unified annual output value of the land or district land price in accordance with No.28 File and directions of the Ministry of Land and Resources of P.R.C., and determined that the unified district price for land acquisition in affected region is 50,000 Yuan/mu, 25,000 Yuan higher than compensation rate worked out as per the highest times of annual output value. The up-to-date unified annual output value standard and district comprehensive land price have been formulated and reported, but have not been formally publicized or implemented.

Although the unified district price for land acquisition in Taiyuan City has not been publicized, in order to maintain the interests of the persons suffering from land acquisition and provide conditions for recovering and improving their living level, the Resettlement Office and the land department of each district agree to provide compensation as per the unified district price, i.e. 50,000 Yuan/mu, after full consultation. Among the 50000yuan ,1000yuan is compensation for young crops, and 49000 is for land acquisition. If the village provide cultivated land for the affected family, the land compensation will be use by village , otherwise, 70% of it(34300yuan per mu) will be paid to the family directly.

5.1.2 Basis of establishment of compensation rates for buildings

All the affected buildings will be compensated according to the replacement costs. In order to know replacement costs of all the affected buildings exactly, the Project Resettlement Office, local resettlement office and the survey and consultation unit Center for Resettlement Research of Wuhan University did the ad hoc survey through following methods to know the replacement costs of affected buildings and the feasible compensation rates from December 2006 to March 2007:

First, know price index of various exchanges of estates at present through exchange information of Taiyuan estate held by Taiyuan Real Estate Bureau. In particular, know information about current second-hand houses exchange through price change of existential estate to offer basis for resettlement rates and establishing policies. See the information shown in block diagram 5-1.

According to Measuring and Calculating Methods of Base Price of Urban Existential Houses Exchange in Taiyuan City, the scope of land acquisition and relocation in Taiyuan Urban Transport Project locates in D-level district. Usually, reference price for exchange of frame structure houses is RMB 1700 Yuan and price for exchange of brick and concrete houses is RMB 1300 Yuan.

|Box Methods of Establishing Reference price for Exchange of Current Estate in Taiyuan |

| |

|1. Formula: |

|Base price for exchange of existential houses in urban area of Taiyuan=location value of existential houses ×(1+ correction |

|factor of floor)×(1+correction factor of quality) ×(1+correction factor of facilities direction)×(1+correction factor of |

|comprehensive environment) |

| |

|2. Location value of existential houses: |

|Residence type |

|A-level district |

|B-level district |

|C-level district |

|D-level district |

|E-level district |

| |

|Multilayer residence |

|2100 |

|1900 |

|1700 |

|1300 |

|1000 |

| |

|High-layer residence |

|2600 |

|2300 |

|2000 |

|1700 |

|—— |

| |

|Duplex residence |

|2800 |

|2500 |

|2200 |

|1900 |

|—— |

| |

|Note: |

|As for existential houses in area of tract development with complete supporting facilities, good realty management, implement |

|the price according to location value in the higher-level district. |

| |

|As for existential houses of special level, structure, function and floor in special district, real estate evaluation |

|organization possessed qualification of state second grade evaluates, and the tax will be levied according to this evaluated |

|price. |

| |

|Location value of brick and wood house can be decreased by 5% according to multi-floor residence of the same level. |

| |

|3. Geographic division |

|According to practical exchange of existential houses in past years, considering urban development planning, transport and |

|environment of the residences, it can be divided into five levels A, B, C, D, E. |

| |

|A-level district: North to Hanxiguan Street, Hanximen Street, Dongjihuying and Xinmin Middle Street, West to Binhe East Road, |

|South to Changfeng Street, East to Bingzhou North-south Road, Wuyi Road, South Inner Ring Street, Jianshe Road and Fudong |

|Street; |

| |

|B-level district: North to Beida Street, Xinghua Street, West to Qianfeng North-south Road, South to Nan Inner Ring West Street,|

|Changfeng West Street, Xuefu Street and Nan Middle Ring Street, East to Wucheng Road, Jianshe South Road, Chaoyang Street, |

|Jingyuan Road and Wulongkou Street; |

| |

|C-level district: North to Shengli Street, North Alley of Heping North Road, west to Heping North-south Road and Qianjin Road, |

|East to Jianshe North Road, Bailongmiao Street and East Street of Xiaogoupo; |

| |

|D-level street: North to north Paihongqu, Jiancaoping Street, West to Chengjiacun, West Trunk Railway, South to Yijing Street, |

|East to South street of Shuangta, Taihangnan North Road, Beihewan Road, Jianhe Road, Urban Area of Xiaodian District, Yingxinjie|

|District, Jinyuan Town and Luocheng; |

| |

|E-level district: except above plats. |

Second, know compensation rates of similar projects recently in Taiyuan as reference basis of establishing compensation rates of this project through survey.

Table 5-1 Compensation rates of typical projects relocation in Taiyuan

Unit: Yuan/㎡

|Projects |Use of the houses |Frame |Brick and |Brick and wood|Earth and wood, |

| | | |concrete | |simple houses |

|Airport avenue |Private residence |1800 |1600 |1500 | |

| |Unit’s residence |1800 |1600 |1500 | |

|Shi-Tai railway |Residence |2172 |1732 |1505 |560 |

| |Housing for business |2800 |2400 |2200 | |

|Reforming the first phase |Cellular residence |1130 |985 | | |

|dilapidated houses in Xiaodian | | | | | |

|District | | | | | |

| |One-floor house | |865 |819 |560 |

| |Housing for business |2260 |1712 |1628 | |

| |Housing for office |1074 |936 |778 | |

| |Residence on the collectively-owned |700 |600 |550 |300 |

| |land | | | | |

| |Housing for business on the |1400 |1200 |1100 | |

| |collectively-owned land | | | | |

|Reforming Yingchun Street |House on state-owned land |1710 |1680 |1610 | |

| |House on collectively-owned land | |1000 |1000 | |

Third, know prices of the newly-built commercial buildings near affected area and price of villagers’ rebuilt houses during reforming of “villages in Taiyuan city” recently.

In the vicinity of Xiangtang Village and Xiangtang Community of north middle ring with most displaced persons, large-scale residential districts are being built with reforming of “villages in the city”. The staff of the Resettlement Office and the staff of Center for Resettlement Research of Wuhan University know the prices of the newly-built buildings after survey on the spot. For a building named “Xiangtang Youth Town”, the price of building under selling is 1700 to 1900 Yuan/㎡. For Xiaozaogou that is at the crossing of Taihang Road and Shenglidong Street, the staff responsible for survey find that price of large-scale Zaoyuan District is 1350 ~1500 Yuan/㎡.

Fourth, according to base price of land in different areas of Taiyuan and constructing and installation costs of various buildings, determine reference prices of various buildings in affected areas of this project.

In accordance with the information offered by Taiyuan Real Estate Bureau, the districts of this project are 3 or 4 districts in Taiyuan. See base prices of various lands in this district as shown in Table 5-3.

Table 5-3 Base prices of various lands of Taiyuan

|Land levels |Land types |Base price |Upper limit |Lower limit |

|3-level |Land for industrial purposes |242 |300 |170 |

| |Land for business purposes |1229 |1334 |1125 |

| |Land for residence |949 |1162 |719 |

|4-level |Land for industrial purposes |NA |NA |NA |

| |Land for business purposes |908 |1125 |690 |

| |Land for residence |579 |719 |450 |

Moreover, according to costs of building materials and labors without consideration of price of the land, constructing and installation costs of frame-structure house, brick and concrete house, brick and wood house are respectively RMB 800 Yuan, RMB 600 Yuan and RMB 400 Yuan at present in Taiyuan. Therefore, considering constructing and installation costs of land types and various buildings in this project, reasonable replacement prices of the frame-structure house, brick and concrete house, brick and wood house in the areas of this project should respectively be about RMB 1750 Yuan, RMB 1550 Yuan and RMB 1350 Yuan.

In order to work out relatively feasible compensation rates for the houses on rural collective-owned land, the personnel of the Resettlement Office go deep into Xiaozaogou Village, Yangjiyu Street, Xinghualing District and Xiaodongliu Village, Huifeng Street, Jiancaoping District with more affected houses on collectively-owned land, find residents newly building houses in recent years, collect various information on costs and expenditures of building construction, analyze the costs, and obtain the first-hand data concerning the costs of house construction on rural collectively-owned land in affected region. The analysis of these typical cases lay the solid foundation for working out compensation rates for the relocation of the houses on rural collectively-owned land.

By the four approaches above, the Resettlement Office know current real estate development in Taiyuan and market conditions clearly, which lays a firm foundation for establishing compensation rates of relocated houses of this project.

5.1.3 Basis of establishment of compensation rates of other kinds

Besides compensation rates of requisitioned lands and buildings, compensation rates of various attachments to the land, various specialized facilities, moving and transition costs of affected families and etc will be established by the Resettlement Office when they negotiate with displaced persons and combine with local market price and compensation rates of the similar projects. Taking telecommunication facilities as an example, according to affected situation from survey, department responsible for the facilities puts forward the compensation report concerning resuming facilities, and then the Resettlement Office employs specialized departments to check and evaluate the report and agrees with department responsible for the facilities in accordance with results of check and evaluation to determine compensation rates of this infrastructure.

5.2 Compensation Rates

By consultation with administrative department of the real estate, enterprises and institutions and displaced persons’ representatives in the affected areas, the Resettlement Office puts forward compensation rates as follows according to some opinions and suggestions from the real estate evaluation company consulted:

5.2.1 Compensation rates for land acquisition

According to relevant policies and the results of survey, on the basis of the suggestions of relevant departments, the Resettlement Office determines the compensation rates for the acquisition of collectively-owned land as follows: for the acquisition of collectively-owned land used for construction obtained with compensation, if there is no building on the land, the compensation will be provided at 75 Yuan/㎡; for the acquisition of collectively-owned cultivated land, the compensation will be provided at 50,000 Yuan/mu.

As for the acquisition of state-owned land used for construction and with buildings, its compensation will be included in the compensation price of the building, and land compensation will not be listed separately; for the acquisition of collectively-owned land used for construction obtained with compensation, if there is no building on the land, the compensation will be provided at 240 Yuan/㎡; for the acquisition of state-owned agricultural land, the compensation will be provided at the compensation price of collectively-owned land, 50,000 Yuan/mu.

5.2.2 Compensation rates for relocated houses

Through repeated survey and consultation, the Resettlement Office organizes Taiyuan Financial Assessment Center and Taiyuan Construction Budget and Settlement Auditing Center to carry out the evaluation of houses in the relocation scope and determine compensation rates. See Table 5-4 through Table 5-6 for compensation rates for various buildings.

Table 5-4 Compensation prices of dwelling houses on state-owned land

Unit: Yuan/㎡

| District |Wanbolin District |Jiancaoping District|Xinghualing District|Yingze District |Xiaodian District |

|Structure | | | | | |

|Frame |2300 |2300 |2300 |2300 |2300 |

|Brick- |Storied |1800 |1800 |1800 |1800 |1800 |

|concrete |building | | | | | |

| |Single story |1600 |1600 |1600 |1600 |1600 |

| |building | | | | | |

|Brick-wood |1500 |1500 |1500 |1500 |1500 |

|Simple two-story building |1750 |1750 |1750 |1750 |1750 |

|Earth-wood |1300 |1300 |1300 |1300 |1300 |

Table 5-5 Compensation prices of non-domestic houses on state-owned land

Unit: Yuan/㎡

|Structure |Wanbolin |Jiancaoping |Xinghualing |Yingze District |Xiaodian District|

| |District |District |District | | |

|Office |Frame |1100 |1100 |1100 |1100 |1100 |

|occupancy | | | | | | |

| |Brick-concrete |900 |900 |900 |900 |900 |

| |Brick-wood |800 |800 |800 |800 |800 |

| |Earth-wood |600 |600 |600 |600 |600 |

|business |Frame |2680 |2680 |2680 |2680 |2680 |

|occupancy | | | | | | |

| |Brick- |Storied |2380 |2380 |2380 |2380 |2380 |

| |concrete |building | | | | | |

| | |Single story |2030 |2030 |2030 |2030 |2030 |

| | |building | | | | | |

| |Brick-wood |1930 |1930 |1930 |1930 |1930 |

| |Earth-wood |1700 |1700 |1700 |1700 |1700 |

| Storage |Frame |1100 |1100 |1100 |1100 |1100 |

|occupancy | | | | | | |

|for | | | | | | |

|production | | | | | | |

|and business| | | | | | |

|的仓储用房 | | | | | | |

| |Brick-concrete |900 |900 |900 |900 |900 |

| |Brick-wood |800 |800 |800 |800 |800 |

Table 5-6 Compensation prices of houses on collectively-owned land

Unit: Yuan/㎡

|Structure |Wanbolin District |Jiancaoping District |Xinghualing District |Yingze District |Xiaodian District |

|Frame |1800 |1800 |1800 |1800 |1800 |

|Brick-concrete |1600 |1600 |1600 |1600 |1600 |

|Brick-wood |1500 |1500 |1500 |1500 |1500 |

|Earth-wood |1300 |1300 |1300 |1300 |1300 |

|Basement |300 |300 |300 |300 |300 |

5.2.3 Rates for moving subsidy and transition subsidy

1. Moving subsidy

1) Moving expenses for dwelling house shall be paid to the relocatee at 10 Yuan/㎡ according to the property building area of the house to be relocated;

2) Moving subsidy for non-domestic house: 10 Yuan/㎡ for office occupancy; 20 Yuan/㎡ for business occupancy, and 25 Yuan/㎡ for storage occupancy for production and business.

3) If the house to be relocated accepts monetary compensation, moving subsidy will be paid once; if the house to be relocated accepts independent transition, moving subsidy will be paid twice.

2. Transition subsidy

1) If the dwelling house to be relocated accepts exchange of property right, during the transition period, the transition subsidy will be paid at 10 Yuan/㎡/month according to the property building area of the house to be relocated, and the rate will be 20 Yuan/㎡/month after the transition period excel 24 months.

2) If the non-domestic house to be relocated accepts exchange of property right, during the transition period, the salary compensation for the employees will be determined according to the personnel on the payroll recorded in labor and social security department, and six-month salary compensation will be paid once as per monthly salary per capita of the institution in the previous year.

3) Business compensation: if the relocation causes production and business suspension, six-month business compensation will be paid once as per monthly average taxes in the previous year; if partial production and business suspension is caused, three-month business compensation will be paid once; if the production has stopped before issuing the relocation notice, no compensation will be provided.

4) For monetary compensation, six-month temporary resettlement allowance will be paid once, 10 Yuan/㎡ for dwelling house and 20 Yuan/㎡ for non-domestic house.

5.2.4 Compensation rates for affected infrastructures and attachments to the ground

According to the compensation rates provided by other projects in Taiyuan City for affected infrastructures and attachments to the ground, after full consultation, the compensation rates for affected infrastructures and attachments to the ground in this project are determined ultimately as follows:

1. For the basement with the height more than 2.2m (including 2.2m), the compensation will be provide as per 1/2 of compensation rate of the house of the same structure; for the basement with the height less than 2.2m, the compensation will be provided at 500 Yuan/㎡, and its area will not be brought into the area of resettlement house.

2. Compensation for house finishing: the graded compensation will be provided according to finishing degree and aging degree. For grade-one brand-new house, the compensation will be provided at 200 Yuan/㎡; for grade-two ninety percent new house, the compensation will be provided at 180 Yuan/㎡, by parity of reasoning.

3. RMB 1000 Yuan for each cave house, 50 Yuan/㎡ for brick wall, and 30 Yuan/㎡ for adobe brick wall.

4. W.C.: RMB 100 Yuan for each brick-wood adobe brick W.C. with cover, RMB 300 Yuan for each simple W.C. without cover, and RMB 200 Yuan for other kind of W.C.

5. RMB 500 Yuan for each gate tower, RMB 300 Yuan for each screen wall, and 15 Yuan/㎡ for terrace.

6. 1000 Yuan/m for well.

7. 30 Yuan/㎡ for greenhouse, RMB 30 Yuan for each timber tree with diameter of 10cm, by parity of reasoning; RMB 20 Yuan for each young tree, RMB 200 Yuan for fruit tree that can bear fruit, and RMB 60 Yuan for fruit tree that cannot bear fruit.

8. RMB 150 Yuan for each telephone, RMB 600 Yuan for each wide band, and RMB 500 Yuan for each closed circuit.

6.Resettlement and Rehabilitation

6.1 Objective, Mode and Principle of the Resettlement and Rehabilitation

6.1.1 Objective of the resettlement and rehabilitation

According to the requirement of World Bank’s implementing policy about involuntary resettlement and relative laws and regulations of the country, the general aim of the World Bank financed Taiyuan Urban Transport Project is to make the living and production of displaced persons, enterprises and institutions rehabilitate as soon as possible and improve as much as possible. Specific aims are:

●Affected households will be compensated according to the standard of replacement cost and ensured that the floor space, structure and inhabited environment of their reconstructed houses at least reach the level before the relocation or have improvement;

●All manner of affected attachments to the ground will be compensated according to the replacement cost price;

●Resettled labor force will be resettled appropriately, and ensured that their income will retain and increase. No peasants will lose their job permanently because of the land acquisition;

●Public buildings and special facilities will be compensated according to the replacement price and rehabilitated according to primary standard;

●After the reconstruction of enterprises, their production scale, capacity and employment of staff will not be affected. No affected labor force will lose his job permanently because his work unit is affected;

●The public facilities and environment of affected communities will rehabilitate to the level before the relocation, and improve as much as possible.

6.1.2 Mode of the resettlement and rehabilitation

The resettlement and rehabilitation of the living of the affected population and the resettlement and rehabilitation of the production will proceed at the same time.

The resettlement and rehabilitation of living, mostly resettlement and reconstruction of houses and rehabilitation of living supporting facilities, mainly include:

●Residential houses of affected households.

●Residential buildings of production organizations.

●Facilities of domestic water supply, power supply and heating, etc.

The resettlement and rehabilitation of production, mostly the job arrangement of labor force and reconstruction and rehabilitation of production facilities, include:

●Agricultural resettlement of affected agricultural population.

●Rehabilitation of production facilities of production organizations. Production facilities of production organizations will be compensated according to replacement price, so the production scale and capacity will not diminish because of the project. Former staff will be reemployed by new-constructed organizations.

The resettlement and rehabilitation will carry on mainly by fund compensation, labor force resettlement, living and production conditions rehabilitation, etc.

6.1.3 Principle of the resettlement and rehabilitation

●The affected population participate in the overall process of the resettlement.

Issues like the compensation rate of houses and facilities, the selection of resettlement location, the time arrangement of relocation and rehabilitation, the transfer of fund and resettlement measures of labor force, etc. must be negotiated and agreed with the participation of displaced persons or delegates. The consultation with displaced persons shall carry on by delegate symposium, villager conference, etc.

●All classes of compensation will be wholly and directly paid to property owners, no unit or individual including committees of districts, townships (streets),villages (communities) of all levels is allowed to use the compensation for property on behalf of others.

●Compensation for houses, special facilities and attachments shall be calculated at replacement price. Compensation amount should not be detained, depreciated or tax-borne; the compensation property owners get shall be calculated at public compensation rate. All properties of former buildings belong to former owners, no organizations and individuals have the rights of domination and disposition. The calculating of compensation price should not be deducted with salvage value of materials of relocated parts and depreciation of former properties.

●Use land reasonably.

Because the project affects many structures, land use for reconstructions shall be planned well and land shall be used reasonably on the basis of consultation with affected population.

●Help and care for vulnerable groups.

In respects of the selection of resettlement location, the supply of information of resettlement house sources, endeavor for purchase opportunities for affordable housing, etc. priority should be given to families of vulnerable groups; In respects of the supply of employment opportunities created in the process of the implement of the project, distribution of service network in resettlement locations, etc. preference should be given to families of vulnerable groups.

6.2 Resettlement for Relocated Households

Well resettlement of relocated households is one of most important contents regarded by Project Resettlement Office as well as a subject repeatedly negotiated with displaced persons. Prior to Aug 2007, Project Resettlement Office worked out currency resettlement as the preliminary policy in principle. However, during consultation with displaced persons, the Project Resettlement Office found that market price of commercial residential buildings in Taiyuan had greatly fluctuated recently and over 95% of relocated households were apt to obtaining houses rather than currency. In particular, some relocated households with smaller living space said that they were unable to get basic housing condition after currency resettlement, so they strongly held that resettlement should be done through exchange of property rights.

To guarantee basic housing condition of affected families, the Project Resettlement Office, under the precondition of fully knowing displaced persons’ resettlement will, reported to the People’s Government of Taiyuan Municipality for approval of amendment of the relocation policy. It was changed from currency resettlement to two modes including exchange of property rights and currency resettlement for affected families to make a self choice. This significant amendment was warmly supported by affected families.

To accelerate successful construction of resettlement houses, the Project Resettlement Office, after the World Bank Project Delegation visiting Taiyuan in Sep 2007, authorized Taiyuan Urban Planning and Design Research Institute to proceed in planning of land use and site selection and design of construction plan of resettlement residential buildings. The design plan has been approved by the People’s Government of Taiyuan Municipality, the construction of resettlement houses will be developed step by step with the progress of the project so that the relocated families can move to their new houses successfully.

According to construction plan of resettlement houses, selection of new resettlement spots will adhere to three principles as below:

First, “to focus on the people”, try to choose a site with smaller impact of land requisition and relocation to construct resettlement houses, and resettle the land requisition and relocation generated by construction of resettlement spots completely in accordance with the resettlement policy for this project.

Second, “settlement in vicinity”, try to choose resettlement spots along North Mid Ring Road and Taihang Road for the convenience of relocated households’ study and work, and try to maintain their activity scope of daily life;

Third, “to improve citizens’ quality of life and environment”, completely change the dirty, disorderly and bad environment during construction of resettlement spots.

According to aforesaid principles, Taiyuan Urban Planning and Design Research Institute determines construction plan of five resettlement spots. It is estimated 11247 sets of resettlement houses will be offered. Besides meeting the resettlement requirement of this project, moving-back resettlement buildings can also be offered to other key projects to facilitate improvement of residents’ housing condition in Taiyuan. See Table 6-1 for construction of resettlement spots.

Table 6-1 Construction plan of resettlement spots of Taiyuan urban transport project

|No. |Name of resettlement spot |Area of land used |Volume ratio |Resettlement area |Number of households can be |

| | |(hectare) | |(㎡) |resettled |

|1 |Land 1 of Xinghualing transit |17 |1.2 |204000 |2040 |

| |expressway | | | | |

|2 |Land 2 of Xinghualing transit |11 |2.8 |308000 |3080 |

| |expressway | | | | |

|3 |Shenglidong Street |13 |1.8 |228700 |2287 |

|4 |Chengjia Village |2 |5 |120000 |1200 |

|5 |Wohu Mountain |17 |1.6 |264000 |2640 |

|Total |60 | |1124700 |11247 |

The construction plan of above resettlement spots has started. In May 2008, written proposal of location presented by Taiyuan Urban Planning and Design Research Institute was approved by Taiyuan Urban Planning Administration, and directions of resettlement spots were determined. However, detailed positions of resettlement spots are under final determination. Resettlement survey is unavailable now due to immature conditions. Therefore, the Project Resettlement Office decides to formulate Resettlement Policy Framework for land acquisition and relocation before formal evaluation of Taiyuan Urban Transport Project and to formulate Resettlement Action Plan when resettlement survey is available. The land acquisition and relocation policy for resettlement spots will be consistent with that for resettlement spots at North Mid Ring Road and Taihang Road.

According to its schedule, the Project Resettlement Office will determine the final construction plan for resettlement spots during Aug.-Sept. 2008, arrange house building in Oct. 2008 and provide new houses for relocation households who move back to live in at the end of 2009. At the same time, the construction of project will be implemented in several stages as much as possible. Construction will be commenced from the work section for which relocation is not necessary or a small number of households need to be relocated, so as to minimize the transition period of relocation households. The longest transition period will not exceed 24 months. All relocation households will be given a housing subsidy by 10 Yuan/㎡ per month.

In May 2008, the Project Resettlement Office learnt from the coordination office for reformation of villages in Taiyuan City that, according to the city’s development plan, 14 villages including Dadongliu, Xiliu, Xiaodongliu, Xiangtang, Xiaozaogou, Daochanggou, Ba’ergou, Can’ershu, Haojiagou, Haozhuang, Wangjiafeng, Dianpo, Longbao and Dongtaibao villages involved in this project and Xudong and Dongshe villages involved in related projects were all covered by the “Village in City” reform plan of Taiyuan City. And Dadongliu, Xiliu, Xiaodongliu, Xiangtang, Xiaozaogou, Daochanggou, Haojiagou, Dianpo and Longbao villages were listed in the 2008 “village in city” reform plan. Based on the consultations with villagers, the Project Resettlement Office has considered resettlement of relocation households and construction of resettlement spots in the construction plan of resettlement spots. And the above “villages in city” will also be reformed in combination with the construction of resettlement spots. The compensation rates of the World Bank financed project is higher than those of “the reformation of villages in city”, especially much more favorite policies are adopted for the vulnerable groups and owner of illegal buildings.

Meanwhile, since real estate market has developed to some extent in recent years, some relocation households have bought houses elsewhere. So monetary compensation and physical resettlement are alternatives for relocation households to choose. If they choose monetary compensation and buy houses themselves, they will be given funds at the compensation rates.

6.3 Rehabilitation of Peasants Affected by Land Acquisition

According to the survey, totally 93.74 mu of collective land is requisitioned for this project, in which 35.1 mu is from North Mid Ring Road, 29.44 mu from Taihang Road, 13.5 mu from Starting and Ending Stations of Yingxin Street, and 15.7 mu from Starting and Ending Stations of Beiyan. The above requisitioned land is orchards and vegetable greenhouses, respectively managed by 11 peasant households under contracts, among which 2 households are from Dadongliu Village in Jiancaoping District; 2 from Nangunian Village; 2 from Xiaozaogou Village in Xinghualing District; 1 from Longbao Village in Xiaodian District; 2 from Dianpo Village in Yingze District; and 2 from Yijing Village in Jinyuan District. These 11 households have 42 persons including 23 labors.

The survey also shows that the above requisitioned orchards and greenhouses are only a part of their land and other non-agricultural incomes are their main sources of incomes.

According to the survey among the above 11 households and resettlement methods of previous similar projects, the final resettlement methods are determined based on consultation with the villages they live in:

●The compensations for attachments to ground including young groups should be given to affected households. compensation for young crops is 1000yuan per mu.

●70% of land compensation fees(34300yuan per mu) will be directly given to affected households.

●The use of land compensation funds collectively managed by villages should be determined at villager representative meetings and should be used mainly for public utilities.

6.4 Rehabilitation of Affected Enterprises and Institutions

The World Bank Financed Taiyuan Urban Transport Project affects 112 enterprises and institutions, among which 55 are at North Mid Ring Road, 53 at Taihang Road, and 4 are affected by the project of public transport. The relocated parts of these enterprises and institutions include some production and business places, some enclosing walls or office buildings, or accommodations owned by units. Resettlement offices at all levels conducted investigations and learnt the desires of all units, consulted with them on the methods of resettlement and recovery, and preliminarily formed the relevant plan of resettlement and rehabilitation of enterprises and institutions.

6.4.1 Compensation and rehabilitation of enterprises whose production and business are affected

The production and business operations of 18 enterprises among the abovementioned 112 enterprises and institutions will be affected directly. According to the preliminary resettlement intentions agreed between resettlement offices and these enterprises, except one enterprise, the rest may change their production layouts at the original sites and continue their production and business operations. As the project office has notified the project alignment in advance, the enterprises may have enough time to conduct adjustment of production layouts so as to minimize the losses of operations. Besides compensations for affected substances at standard rates, professional evaluation agents will be employed to finally determine loss from suspension.

Table 6-2 Resettlement and rehabilitation methods for enterprises whose production and business operations are affected

|No. |Unit |Description of influence |Degree of influence |Resettlement method |

|1 |Duxiaozi Lubricating Oil Processing Plant, |Two oil tanks in the oil depot, gatehouse and enclosing wall will be |Slight influence; normal production |Use compensation funds to change |

| |Taiyuan |affected. |will not be affected |the location of production |

|2 |Fengquan Rainmaker Plant, Taiyuan |The office building and a manufacturing shop will be affected, about |slight influence; move production shop|Use compensation funds to change |

| | |1200 ㎡ of brick and concrete. |nearby |the location of production |

|3 |Chengruida Iron Tower Manufacture Co., Ltd, |Gatehouse, enclosing wall and a workshop will be affected, 25 ㎡ of |Reconstruct enclosing wall; move |Use compensation funds to change |

| |Shanxi |brick and concrete, 476.6 ㎡ of brick and wood. |workshop nearby; slight influence |the location of production |

|4 |Guangju Industry Co., Ltd, Shanxi |A workshop will be affected, 492 ㎡ of brick and concrete. |Move workshop nearby; slight influence|Use compensation funds to change |

| | | | |the location of production |

|5 |Petroleum Drilling Tool Plant, Jinxi |Brick-concrete structure of 4041 ㎡, and simple structure of 3275㎡ |The affected generally is spare |Use compensation funds to change |

| | | |building and office occupancy; slight |the location of production |

| | | |influence. | |

|6 |Jinbao New-Type Building Materials Co., Ltd, |Two workshops will be affected, 719 ㎡ of brick-concrete structure. |Medium influence; reconstruct workshop|Use compensation funds to change |

| |Taiyuan | |nearby |the location of production |

|7 |Xinhua Machine Works, Taiyuan |The part will be affected, and steel-concrete structure of3100㎡ and |Medium influence, move the production |Use compensation funds to change |

| | |brick-concrete structure of 1500㎡ will be relocated. |shop to the building nearby |the location of production |

|8 |Shanxi Luweibao Taiyuan Steel Refractory |Just change to China-Germany joint venture in July 2006. Both two major |Severe influence |Integral moving |

| |Materials Co., Ltd |workshops and one in-construction workshop will be relocated. | | |

|9 |The Warehouse of Taiyuan 3rd Construction |A warehouse of 186 ㎡ of brick and concrete will be affected. |Slight influence |Change the location of production|

| |Company | | | |

|10 |Xinglong Garage |Brick-concrete structure of 3200㎡ |Slight influence |Use compensation funds to adjust |

| | | | |the location of production |

|11 |The Plasticine Factory |One workshop will be affected, brick-concrete structure of 77㎡. |Slight influence |Use compensation funds to adjust |

| | | | |the location of production |

|12 |Jingdong Automobile Driving School |The parking lot and part of the training field will be affected, 498 ㎡ |Slight influence |Use compensation funds to adjust |

| | |of brick and concrete structure. | |the location |

|13 |Shanxi Huaqi Machinery Company |A transformer and a small part of workshops will be affected, 560 ㎡ of |Slight influence |Use compensation funds to adjust |

| | |brick and concrete and 210 ㎡ of brick and wood. No material affection | |the location of production |

| | |to the production. | | |

|14 |Xinhui Metal Forming Machinery Works |Brick-concrete structure of 1524.62㎡ |Slight influence |Use compensation funds to adjust |

| | | | |the location of production |

|15 |2nd Brick Yard of Wangjiafeng Village |A part of the factory buildings need removing, 24 ㎡ of brick and |Production of the brick factory will |Use compensation funds to adjust |

| | |concrete, 248.6 ㎡ of brick and wood and 24 ㎡ of cabanas. |not be affected |the location of production |

|16 |Taiyuan Air Pipe Factory |Partial production yard will be affected, 1326.5 ㎡ of brick and |Slight influence |Use compensation funds to adjust |

| | |concrete. | |the location of production |

|17 |Taiyuan Mining Machinery Group Co., Ltd. |A production shop will be affected, 12948 ㎡ of brick and concrete, |Medium influence; move the production |Use compensation funds to adjust |

| | |826.4 ㎡ of brick and wood and 892 ㎡ of cabanas. |shop nearby |the location of production |

|18 |The Plasticine Factory of Dianpo Village |A workshop of 77 ㎡ of brick and concrete will be affected. |Slight influence |Use compensation funds to adjust |

| | | | |the location of production |

As for the enterprises with production and business affected, once the project is commenced, the corresponding expenses will be paid six month in advance according to the progress of engineering construction, in order that the enterprises may do preparation in advance. Make reasonable arrangement of land acquisition and relocation and normal production and business of the enterprises, so as not to affect the construction and to ensure the successful production and business of the enterprise.

|Box Resettlement of Shanxi Luweibao Taiyuan Steel Refractory Materials Co., Ltd. affected most severely |

|Shanxi Luweibao Taiyuan Steel Refractory Materials Co., Ltd. is a large-scale enterprise and became a Chinese –Germany |

|joint venture in July 2006. The refractory materials produced by the company are mainly supplied to Taiyuan Iron and |

|Steel Group. The North Mid Ring passes across the enterprise, and two major workshops and one in-construction workshop |

|have to be relocated. The whole enterprise almost losses its basic production function completely. |

|In order to solve the resettlement problem of this enterprise, from December 2006 to May 2005, the Resettlement Office |

|has made efforts from different angles: |

|1) Probe into the possibility of line optimization with the design department together. Avoid the core part of the |

|enterprise as best as possible and minimize losses. |

|2) Negotiate with the enterprises on the compensation program and the methods for proper resettlement and rehabilitation |

|when the line arrangement has been determined. |

|3) Communicate and coordinate with the municipal government and relevant organizations, and try for preferential policy |

|for integral moving of the enterprise. |

|Through full consultation, in May 2008, the Resettlement Office and Shanxi Luweibao Taiyuan Steel Refractory Materials |

|Co., Ltd. achieved the following agreement on resettlement: |

|1) Integrally move the enterprise, and resettle it in Taiyuan Stainless Steel Ecological Industrial Park. The Stainless |

|Ecological Industrial Park is located in Jiancaoping District in Taiyuan City. The area of the park is 100 square |

|kilometers, and there are exclusive market zone, industrial processing zone, sales center, resource allocation center, |

|logistics and distribution center and corresponding technical development center and information center in the park. The |

|park borders upon National Highway 108 and Xinlan Road, is 3km away from the entry of Dayun Expressway, 5km away from |

|Binhe East Road and 2.5km away from material base, Taiyuan Iron and Steel Group, and has two railway sidings, which |

|provides convenient traffic for the park. The park is successfully opened on August 28, 2004. |

|2) For the mechanical equipment which may be used normally after moving, the Project Office will afford the expenses of |

|equipment dismounting and transportation; for the equipment which may not be used after moving, the Project Office will |

|provide compensation as per the original purchasing price of the equipment; |

|3) The determination of property and area of the house to be relocated should be subject to the ownership certificate |

|issued by the relevant administration; |

|4) The compensation for mechanical equipment should be subject to the determination of the professional evaluation |

|organization; |

|5) The Resettlement Office should actively communicate and coordination with the department related to enterprise moving,|

|providing convenience for the successful moving of the enterprise. |

|6) On the basis of consultation and evaluation, resettlement compensation for the enterprise is RMB 211,335,514.59 Yuan. |

|The enterprise will finish the moving within two years after the project commencement. |

6.4.2 Resettlement and rehabilitation of other enterprises and institutions

The Project Resettlement Office will compensate enterprises and institutions whose production and operation is not materially affected according to these organizations’ actual amount of affected structures and the compensation rate. As to these organizations, in general, only parts of unproductive and non-operative structures are affected, which can be simply rehabilitated on the spot and will not cause loss of production suspension. See Table 6-3 for impact situations and resettlement methods of these organizations.

Table 6-3 Resettlement and rehabilitation methods of affected enterprises and institutions

|Organization |Relocated |Description of affection |Resettlement and rehabilitation methods |

| |Area | | |

|Beichen Development Company|1504 |A part of temporary structures are |Remove the temporary structures; pay adequate |

| | |affected. When the resettlement plan was |compensation. |

| | |concluded, this organization was removing | |

| | |some structures within the red line by | |

| | |itself. | |

|Shanxi Laboratory |8228 |Removing of sewage treatment facilities is |Pay compensation according to the rate; |

| | |involved. |rehabilitate hand reconstruct at nearest place. |

|Beijianhe River |298 |The watercourse drainage facilities of |Pay compensation according to the rate; |

|Administrative Station | |Beijian River will be all removed. |rehabilitate hand reconstruct at nearest place. |

|Bolang Shirt Factory |4312 |Idle houses were rented to Xinhua School, |Pay compensation according to the rate. |

| | |1/3 will be relocated. | |

|The 9th Architechtural |6952 |Shop fronts of the front row are removed. |Remove the temporary structures; pay adequate |

|Engineering Company of | | |compensation. |

|Linzhou City | | | |

|Taiyuan Iron and Steel |5874 |2 gates, water tower, gatehouse. The |Reconstruct at the same place. |

|(Group) Co., Ltd. (main | |affection is comparatively small. | |

|plant side) | | | |

|Taiyuan Botong Culture and |100 |enclosing wall |Pay compensation according to the rate, rebuild |

|Education Training School | | |enclosing wall. |

|Dashun Industry Co., Ltd |300 |Gatehouse and enclosing wall. No affection |Pay compensation according to the rate; rebuild |

| | |to its production. |enclosing wall and gatehouse. |

|Long’ao Electricity |367.2 |The office building is affected and need |Pay compensation according to the rate; rebuild |

|Administrative Station of | |removing. |office building. |

|Galiaogou River | | | |

|Huifeng Community |1345 |Some scattered old houses, no material |Pay compensation according to the rate. |

| | |affection. | |

|Sanwei Steel Structural |278.75 |The office building is affected and need |Pay compensation according to the rate; choose |

|Engineering Co., Ltd. | |relocating. Production is not affected. |another office building. |

|Taiyuan Fruit Plant Field |907.3 |Some old houses, no material affection. |Pay compensation according to the rate; rebuild |

| | | |enclosing wall and gatehouse. |

|The Concrete Division of |2929.44 |Only gatehouse, enclosing wall and a row of|Pay compensation according to the rate; rebuild |

|Taiyuan Lionhead (Group) | |shopfronts for rent are affected. No |enclosing wall and gatehouse. |

|Co., Ltd. | |affection to the production. | |

|Taiyuan 2nd Rainmaker |371 |Gatehouse and enclosing wall are affected. |Pay compensation according to the rate; rebuild |

|Factory | | |enclosing wall and gatehouse. |

|Yinhe Aluminium Alloy |145 |Gatehouse and enclosing wall are affected. |Pay compensation according to the rate; rebuild |

|Material Factory | | |enclosing wall and gatehouse. |

|Huifeng Sub-district Office|6239 |A three-storeys building of which the 2nd |Pay compensation according to the rate. |

| | |and 3rd floors is the action center of the | |

| | |community, 1st floor is the property sales | |

| | |office of the Civil Administration Bureau. | |

|Penghong Real Eatate |2666 |A few cabanas. No material affection to the|Pay compensation according to the rate. |

|Company | |company. | |

|Shanxi Frozen Poultry Semen|84 |Gatehouse and enclosing wall are affected. |Pay compensation according to the rate; rebuild |

|and Breeding Center | | |enclosing wall and gatehouse. |

|Shanxi Yuanli Science and |1306 |A half of the main office building is |Pay compensation according to the rate; rebuild an|

|Technology Development Co.,| |affected. |office building at the nearest place. |

|Ltd | | | |

|Shuangqin Honeycomb Briquet|96 |enclosing wall and cabanas |Pay compensation according to the rate, rebuild |

|Factory | | |enclosing wall. |

|Fruit Plant Center of |870 |some old houses for rent |Pay compensation according to the rate, rebuild |

|Jiancaoping District, | | |backwardly. |

|Taiyuan | | | |

|Villagers’ Committee of |1610 |2 two-storeys buildings |Pay compensation according to the rate. |

|Xiliu Village | | | |

|Villagers’ Committee of |2284 |the village police station, need wholly |Pay compensation according to the rate. |

|Xiaodongliu Village | |removing | |

|Property Company of Anguang|65.75 |Gatehouse and enclosing wall are affected. |Pay compensation according to the rate; rebuild |

|Quarter | | |enclosing wall and gatehouse. |

|Haodong Physical |30 |a carport |Pay compensation according to the rate. |

|Distribution Co., Ltd. | | | |

|Jinji Xinyouyi Quarter |1490 |enclosing wall |Pay compensation according to the rate; rebuild |

| | | |enclosing wall and gatehouse. |

|Shanxi National Defence |911.5 |gatehouse, gate and a transformer |Rebuild a gatehouse and remove the transformer. |

|Fleet Operation | | | |

|Wansha Real Estate |270 |Several temporary living houses of building|Pay compensation according to the rate. |

|Development Company | |workers are involved, which will probably | |

| | |be dismantled by the organization itself | |

| | |before this project starts. | |

|Dongshe Waste and Old |40 |enclosing wall |Rebuild enclosing wall. |

|Materials Market | | | |

|Jinxi Machinery Building |467 |Only houses close to the enclosing wall and|Pay compensation according to the rate; rebuild a |

|and Repairing Plant | |a boiler are affected. |boilerhouse. |

|Jinxi Rubber and Plastic |503 |The land is station owned. Only a few |Pay compensation according to the rate; rebuild |

|Products Factory | |structures like the gatehouse are affected.|enclosing wall and gatehouse. |

|Jinxi Prefab Frame Factory |1288 |Some unproductional houses are affected. No|Pay compensation according to the rate. |

| | |material affection. | |

|Taiyuan Fruit Plant Field |495.2 |The field crosses over Wanbolin District |Pay compensation according to the rate. |

| | |and Jiancaoping District. A part of | |

| | |abandoned hog houses are affected. | |

|Taiyuan Maoxinsheng Goods |160 |Gatehouse and enclosing wall are affected. |Pay compensation according to the rate; rebuild |

|and Materials Trade Center | | |enclosing wall and gatehouse. |

|Taiyuan Ruigang Erection |2520 |It is in the range of the crossing inter |Pay compensation according to the rate, and wholly|

|Work Co., Ltd | |section, almost need entirely dismantling. |relocate. |

|Taiyuan Wanbolin Fruit |930 |Some scattered old houses of which some |Pay compensation according to the rate. |

|Plant Field | |have already broken down and some are | |

| | |abandoned. No material affection. | |

|West Xinghua Street |0 |Station owned. A playground is affected, |Pay compensation according to the rate, construct |

|Elementary School of | |but may cause traffic safety issues in the |a new playground and traffic aisle. |

|Wanbolin District, Taiyuan | |future for the students. | |

|City | | | |

|Wanbolin Fruit Plant Field |250 |Abandoned old houses |Pay compensation according to the rate. |

|Shanxi Jinan Chemical Plant|12884 |It is in the state of off production or |Pay compensation according to the rate; |

| | |half off production. The affection is |Organizations that rented its houses must rent |

| | |small. |other abounding idle houses. |

|Environmental Health Team |3037 |Almost half of the structures are affected.|Pay compensation according to the rate, rebuild at|

|of Xinghualing District, | |The affection is comparatively big. |the nearest place. |

|Taiyuan | | | |

|Chuangxin Embellishment |540 |No more production is seen; houses are |Pay compensation according to the rate. |

|Work Company of Bailong | |abandoned. | |

|Garden | | | |

|Dongshan Heat Source |292 |gate and gatehouse |Rebuild enclosing wall and gatehouse. |

|Factory | | | |

|Yada Corperation |1423 |rented to others |Pay compensation according to the rate. |

|Civil Defense 838 of Shanxi|1082 |the Office of Civil Defense |Pay compensation according to the rate. |

|Province | | | |

|Taiyuan Slide Fastener |1004 |A workshop house that is rented to others |Pay compensation according to the rate. |

|Factory | |by the owner is involved. | |

|Daochanggou Village, |1130 |shopfronts and temporary structures on the |Pay compensation according to the rate. |

|Subject Office of | |edge of the village | |

|Yangjiayu, Xinghualing | | | |

|District | | | |

|Hongchao Company |105.8 |Private-owned, hiring collective land. A |Pay compensation according to the rate. |

| | |small 2-story building is affected. No | |

| | |material affection to production. | |

|Baiyun Flower Center |495.5 |Private-owned, hiring station owned land of|Pay compensation according to the rate. |

| | |the mental hospital. 3 greenhouses, a | |

| | |warehouse, gatehouse, houses, etc. are | |

| | |affected. About half the center will be | |

| | |relocated. | |

|Mental Health Center of |1542 |In the hospital area, only the gatehouse |Pay compensation according to the rate; |

|Taiyuan City | |and carport are affected, the main building|reconstruct a pool and water supply system at the |

| | |is not affected. On the land oof the |nearest place. Consider constructing an |

| | |hospital across, a big pool, a 300m-deep |underground passage to ensure the safety of staff |

| | |well, and some houses are affected. The |on the way to work. |

| | |water supply system needs reconstruction. | |

|The refrigerated warehouse |255 |This area belongs to the warehouse of the |Pay compensation according to the rate. |

|of Taiyuan Bingfeng | |emporium; only a corner of the warehouse, a| |

|Emporium | |toilet and a cabana are affected. | |

|Taiyuan Jianyuan Industry |640.3 |Only the enclosing wall and two small |Pay compensation according to the rate; rebuild |

|and Trade Co., Ltd | |houses are affected. No material affection |enclosing wall and gatehouse. |

| | |to production. | |

|The Professional Trading |879.5 |No material affection to structures like |Pay compensation according to the rate; Consider |

|Academy of Radio, Film and | |school buildings, only 800 ㎡ of brick and |construct an underground passage or a pedestrian |

|TV | |concrete and 79.52 ㎡ of cabanas are |overcrossing to give convenience to the traffic. |

| | |affected. But during the construction | |

| | |period, regular teaching may be affected. | |

| | |The completed project will separate the | |

| | |academy into 2 parts. | |

|Haojiagou Village (2# |45.4 |Removing the wellhouse may affect the water|Pay compensation according to the rate; Rebuild at|

|wellhouse) | |supply of the village. Need rebuilding at |the nearest place. |

| | |somewhere nearby. | |

|Shanxi Sanjin |459 |Only gatehouse, enclosing wall and garage |Pay compensation according to the rate; rebuild |

|Pharmaceuticals Co., Ltd. | |are affected. No material affection. |the enclosing wall and the gatehouse. |

|The Switch Factory of |1838 |A few workshops, storerooms and garage are |Pay compensation according to the rate; Rebuild at|

|Shanxi Power Company | |involved, no significant affection to |the nearest place. |

| | |production. But a water tower and a water | |

| | |storage pond need removing; domestic water | |

| | |of the staff is affected. | |

|Betrochemistry Branch |814.3 |A few non-productive structures; no |Pay compensation according to the rate. |

|Factory | |material affection to production. | |

|Small Commodities Market |4500 |All 180 shops need relocating. |Construct a new market; whole relocation. |

|Shanxi Archives Bureau |13418 |Station owned land. Office building and |Pay compensation according to the rate; rebuild at|

| | |dormitory are affected. |the nearest place. |

|Warehouse of Overseas |195 |Station owned. A few cabanas are affected, |Pay compensation according to the rate. |

|Chinese Friendship Company | |no material affection. | |

|Taiyuan Asbestos Factory |2467 |Office building. Half the office building |Pay compensation according to the rate; Rebuild at|

|(Jierui Building Materials | |is within the range of the red line, need |the nearest place. |

|Company) | |removing and reconstruction. | |

|Taiyuan Zhaoyang Carbon |790.5 |Non-productive structures, little |Pay compensation according to the rate. |

|Factory | |affection. | |

|Taiyuan Salvation |1320 |Station owned. Some farms or simple |Pay compensation according to the rate; Rebuild at|

|Administer Station | |factories for employment of salvaged people|the nearest place. |

| | |are affected; positions need adjusting. | |

|Taiyuan Railway Prison |1020 |Station owned. Half of the office building |Pay compensation according to the rate; Rebuild at|

| | |is affected. There is material affection. |the nearest place. |

| | |Need wholly relocating. | |

|1st Brick Yard of |174.1 |No material affection. |Pay compensation according to the rate. |

|Wangjiafeng Village | | | |

|Villagers’ Committee of |2485 |1/3 of the office building is affected; the|Pay compensation according to the rate; Rebuild at|

|Wangjiafeng Village | |auditorium will be completely removed. |the nearest place. |

|Wangjiafeng Elementary |9120 |Station owned. Need wholly removing and |Pay compensation according to the rate; select |

|School | |rebuilding. |another place to rebuild. |

|The Horticulture Institute |5727 |A number of greenhouses and test field are |Pay compensation according to the rate. |

|of the Academy of | |affected. | |

|Agricultural Sciences | | | |

|Village Collective of |844.2 |The pool of the village collective and |Pay compensation according to the rate. |

|Longbao Village | |collective owned houses. | |

6.4.3 Reconstruction of affected schools

Among all kinds of affected organizations, the Resettlement Office pays special attention to the resettlement of affected schools. According to field survey, 4 schools that will be affected by the project respectively are: West Xinghua Street Elementary School in Jinjixi Community, Wanbolin Sub-district Office, Wanbolin District; Xincun Elementary School (and dormitory) in Xincun Community, Xincun Sub-district Office, Xinghualing District; The Professional Trading Academy of Radio, Film and TV in Haozhuang Township, Yingze District and Wangjiafeng Elementary School (and kindergarten) in Haozhuang Township, Yingze District.

Among these 4 schools, as to Xincun Elementary School, only its staff quarters are affected, the teaching area is not affected; The Professional Trading Academy of Radio, Film and TV and West Xinghua Street Elementary School are both separated by the highway into two parts, however, their teaching buildings are not affected. Considering the safety issue of the students on their way to school after the project finishes, the Resettlement Office communicated with the principles of the two schools, they all hope the Office will consider add pedestrian over-crossing or underground passage for the convenience of students’ crossing the street. The Resettlement Office delivered this demand to the design organization, and will give consideration to it during the construction process of the project.

So, the only school that needs wholly removing along the line of this project is Wangjiafeng Elementary School (and kindergarten). The floor space of this school is 9120 ㎡, among which 1664 ㎡ are brick and concrete, 7456 ㎡ are cabanas. Because this project needs to remove most of the school buildings, considering the need of the safety of students and normal teaching environment, the Office decided to rebuild the school at another place. In December 2006, workers of the Project Resettlement Office, together with workers of The Resettlement Office of Haozhuang Township, and local office workers in charge of education negotiated on the reconstruction with village cadres and the masses. The agreed opinion is that the Resettlement Office will choose a proper site within the village and requisition land to reconstruct. The compensation for affected structures will be paid once for all 6 months before the relocation, and the Villagers’ Committee will organize the reconstruction. Before the new school is completed, the old school should not be dismantled to ensure normal teaching activities. The moving from the old school to the new school will proceed during vacation.

[pic]

Picture 6-1 Wangjiafeng Elementary School to be relocated

6.4.4 Resettlement and rehabilitation of affected shops

According to the resettlement survey, there are 114 shops to be relocated along the line. Besides, a smallware market with 180 shops had to be relocated, all the affected employees are 657. These shops may be divided into three groups:

Group 1: 82 shops are rebuilt by rural or community people in their houses, which are defined as residential houses on their licenses. Shops of this kind concentrate in Huifeng Community of Jiancaoping District and Haozhuang Village of Yingze District.

Group 2: 22 shops are temporary structures built by some enterprises for rent. Shops of this kind concentrate along Madaopo Street of Dongshan Coal Mine and Kaixuan Street of Daochanggou Village, and in the Haojiagou Smallware market.

Group 10 shops are sites of failed enterprises or idle sites for rent. Shops of this kind mainly concentrate in Jin’an Chemical Plant (Yangjiayu Office of Xinghualing District).

The resettlement measures for the 82 private shops are:

●For shops rebuilt by individuals or households from residential houses, besides compensation according to the compensation rate, their operating loss of 3 months will be compensated according to their duty-aid certificates.

●Some shop fronts will be built in resettlement plots, those whose shop had been dismantled will take precedence to lease them.

The resettlement measures for the 32 shops built by enterprises and institutions are:

●For new shop fronts and mercantile occupancy rebuilt by enterprises and institutions backwardly at nearest places after current shops are dismantled, on an equal footing, the former tenants have preferential tenant right.

●Moving cost, transition cost and compensation for fitments determined by evaluation belong to the tenant; the compensation for the construction belongs to the owner of property right.

●The operating losses caused by relocation of shops of enterprises and institutions shall be determined after the Resettlement Office negotiates with the displaced persons.

In order to properly resettle the shops in Yiwu Street and Baigou Street smallware market, several smallware markets has been newly built in Haojiagou Village, Haozhuang Township, Yingze District, such as Jinyang Smallware Market, Meiji Market, and so on. These markets are close to the existing smallware market and have convenient traffic. After the smallware market is relocated, the existing shop operators may move the new places for business according to the current leasing area and price. Their businesses will not be affected, and benefit from the improvement of traffic conditions after the construction of Taihang Road.

[pic]

Picture 6-2 Jinyang Smallware Market for resettling the shops to be relocated

[pic]

Picture 6-3 Meiji Smallware Market for resettling the shops to be relocated

6.5 Rehabilitation of Professional Facilities

Affected professional facilities mainly mean power facilities and telecommunication facilities. As to these facilities, on basis of sufficient consultation with power and telecommunication organizations, the resettlement organization will compensate according to the replacement prices of these facilities. Rehabilitation and reconstruction of these facilities will complete before requisition to ensure the normal requirement for production and living of population along the line of the project.

6.6 Resettlement and Rehabilitation of Affected Vulnerable Groups

As for relocated families of vulnerable groups, resettlement offices at all levels and primary government will provide special help and care. Main measures are:

With respect to the vulnerable groups determined, the project office will provide the security measures as follows:

●According to the survey, if the family only has one dwelling house, the life is poor indeed, and the public has no objection after issuing public announcement, the dwelling house with building area not less than 50㎡ will be provided. If the building area of resettlement house is less than 50㎡, the price of structure difference and the expenses for exceeding resettlement area will not be settled.

●The resettlement office sets up the funds of RMB 2 million Yuan for helping vulnerable groups according to specific needs during the resettlement course. The funds will be used strictly conforming to public and transparent management articles. See Attachment 2 for use method of the funds for helping vulnerable groups.

●For area, type and location of resettlement house, the family of vulnerable group has priority in selection.

●Resettlement organizations at all levels are responsible for organization manpower to assist in the moving of the families of vulnerable groups.

6.7 Schedule of Resettlement and Rehabilitation

It is planned that the civil works of this project would start in January 2009. In order that the affected population and organizations will be appropriately and well resettled, all land requisition and resettlement activities will be finished before the civil works starts. See table 6-4 for time arrangement for each resettlement activity.

Table 6-4 Schedule of resettlement activities

|Activity |2006 |2007 |2008 |2009 |2010 |2012 |

| |2 |4 |6 |8 |10 |

|I |Land compensation | | | |83191761.03 |

| |Compensation rates for land (calculate|Mu |795.47 |50000 |39773500 |

| |according to different districts) | | | | |

| |Compensation rates for newly-added |㎡ |536781.6 |64 |33941750.34 |

| |land used for building | | | | |

| |Farmland reclamation costs |Mu |93.74 |4500 |421830 |

| |Farmland use tax |㎡ |62524.58 |10 |625245.8 |

| |State-owned farmland and forest land |Mu |144 |50000 |7200000 |

| |Management costs of land (1.5% of land| | | |1242593.97 |

| |costs) | | | | |

|Ⅱ |Compensation for relocated houses |Yuan | | |923865353 |

| |Rural private houses | |156944.8 | |257319866 |

| |Frame |㎡ |97.4 |2300 |224112 |

| |Brick and concrete |㎡ |118357.3 |1800 |213043212 |

| |Brick and wood |㎡ |23894 |1500 |35840925 |

| |Earth and wood |㎡ |3832.8 |1300 |4982627 |

| |Simple house |㎡ |10763.3 |300 |3228990 |

| |Enterprises and institutions’ houses | |266563.4 | |627309287 |

| |Frame |㎡ |58122 |2680 |155766960 |

| |Brick and concrete |㎡ |191991.5 |2380 |398025250 |

| |Brick and wood |㎡ |15088.9 |1930 |29121577 |

| |Earth and wood |㎡ |26115 |1700 |44395500 |

| |Moving costs | |156944.8 |10 |1569448 |

| |Transition costs | |156944.8 |240 |37666752 |

|Ⅲ |Compensation for attachments and | | | |6639751.5 |

| |facilities | | | | |

| |Cave |Pore |22 |1000 |22000 |

| |Fence |㎡ |23399.2 |50 |1169960 |

| |Timber tree(Φ≥10cm) | |2747 |30 |82410 |

| |Terrace |㎡ |12165 |30 |364950 |

| |Timber tree(Φ ................
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