Using Involuntary Resettlement on Highway Project to Alleviate Poverty: A Case Study from Hubei Shiman Highway Project, China Zhefu Liu (zliu1@worldbank.org) Senior Social Development Specialist The World Bank, Beijing Office

World Bank Policy OP 4.12

Objectives of Involuntary Resettlement, OP 4.12 be avoided where feasible, or minimized; be conceived and executed as sustainable development programs; be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them.

World Bank’s Role Ensuring appropriate mitigation measures in project design Monitoring compliance with agreed measures Ensuring independent monitoring Project not complete until resettlement measures are fully implemented

Economic Status of the 4 Affected Counties GDP per capita in Hubei, US 1,242 Ranks 14 in 31 provinces in China Average net income, US 308 in Hubei Farmer’s net income, US 235 Landholdings per capital; 0.05 ha. Under provincial poverty line

Shiman Expressway in China 107km, 4 lanes with 80 km/h Bridges & tunnels, 50% Construction, 2.8 years Overrun cost less than 10% Resettlement, 1.5+0.5 years 363 ha. of cultivated land acquired 1,480 households relocated 249,646 m² of buildings cleared up 20 centralized resettlement sites set up

Resettlement Strategies were Set Up at Project Preparation Optimize expressway alignment to Minimize the land acquisition Ensure adequate compensation rates Save cultivated land Create new arable land Build centralized resettlement sites Restore roads and irrigation systems

Process

Grievance Procedure

Land Reclamation

Centralized resettlement sites

Infrastructure Improvement

Resettlement Progressive Status Reduced land acquisition, 26%, Impacts to families, 25% Saved cultivated land from 11-57% Create new land, 113 ha. 95% were satisfactory 60% increase of family income kkkkk

Economic Benefits from Resettlement Recurring benefits: 0.75USD m/yr: Saving cultivated land: 0.15USD m/yr Improving farming land: 0.2USD m/yr Increasing cultivated land: 0.39USD m/yr Saving social security: 1.16USD m Centralized sites: 1.5USD m uuuuuuu

Feedback from PAPs “Even if now I have a rough time for moving, I am pleased because this benefits our own offspring.” ------ Villager “… the resettlement under the expressway makes us walk out … from a mountainous area to a roadside, from muddy house to brick house, from single story building to multi-storied house, from inside of the mountain to the outside, and from village to township, and it also provides our offspring with a hope.” ------ Villagers

Success Factors Effective leaderships Efficient management and distribution of resettlement funds Public participation Effective procedures for receiving and addressing complaints Dealing with complaints in a timely manner

Hubei Province Shared Bank Experience in its funded projects

Jiangxi Expressway in China

Yiba Expressway in China

Fuzhou Urban Transport Proj.

Fuzhou shared Bank Experience in …

Questions