World Bank Financed Zhaotong Central City Environmental Construction Project

World Bank Financed Zhaotong Central City Environmental Construction Project

Social Assessment Report

China Cross-Cultural Consulting Center at SunYat-senUniversity

November 21, 2009

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Abstract

Entrusted by the Yunnan Provincial Management Office and Zhaoyang District Management Office of the World Bank Financed Yunnan Urban Environment Project, the social assessment (SA) experts from the China Cross-Cultural Consulting Center at Sun Yat-sen University (CCCC at SYU) went to Zhaoyang District, Zhaotong Municipality for a field SA investigation of the three subprojects under the World Bank Financed Zhaotong Central City Environmental Construction Project (hereinafter referred to as the “Project”) from September 17 to November 12, 2009, and completed the SA report of the Project on November 21, 2009 on schedule.

The Project consists of three subprojects, which are the central city river management project, the northern area water supply and pipeline project and the central city sewage treatment and intercepting sewer project.

The Project involves 3 sub-districts and 4 Townships of Zhaoyang District, which are Longquan Sub-district, Taiping Sub-district, Fenghuang Sub-district, Beizha Town, Xiaolongdong Xiang, Yongfeng Xiang and Shouwang Xiang, benefiting a total population of 318,192, including an urban beneficiary population of 110,158, accounting for 34.62% of total beneficiary population, a rural beneficiary population of 169,288, accounting for 53.20%,and a temporary beneficiary population of 38,746, accounting for 12.18%. The affected place is a state-level poor county/district. The Project will benefit 33 poor communities/villages and a poor population of 16,300, accounting for 5.82% of total beneficiary population, including a poor rural population of 12,600. In addition, the affected areas involve an ethnic minority population of 85,311, accounting for 21.47% of the population of the affected areas.

At the preparatory stage of SA, the SA experts of the World Bank identified the key social factors affecting the fulfillment of project objectives:①The possible key social influencing factors of the river management project include the behavior of the affected groups, community participation, institutional arrangements, poverty, willingness and ability to pay, etc.;② The possible key social influencing factors of the northern area water supply and pipeline project and the central city sewage treatment and intercepting sewer project include land acquisition and house demolition, the lifestyle of the affected groups, poverty, willingness and ability to pay, etc.;③Ethnic minorities: The social factors of concern include the policies applicable to ethnic minorities, demographic, social and cultural characteristics of ethnic minorities, learning specific requirements of ethnic minorities through consultation, acquiring support of ethnic minority communities for the Project through consultation, and proposing measures to avoid or reduce negative impacts on ethnic minority communities adapted to ethnic minority cultures.

Around the above social factors that may affect the fulfillment of the objectives of the Project, this report focuses on the following on the basis of SA fieldwork information:

1.The ethnic minorities in the affected areas, and the impacts of the Project on ethnic minorities, so as to determine if it is necessary to develop a separate ethnic minority development plan for the ethnic minorities in the affected areas. The SA team has analyze the cultural characteristics of the ethnic minorities in the affected areas, the impacts of the Project on ethnic minorities and how to ensure that ethnic minorities are equally benefited in line with the World Bank policy OP4.10.

2.The poor population in the affected areas, and the impacts of the Project on the poor population. The Project will benefit a rural poor population of 12,600 and an urban poor population of 3,700, where poor population accounts for 5.82% of the total population benefited by the Project.

All the three subprojects involve land acquisition or house demolition.Relatively poor communities and population are often disadvantaged in resettlement using compensation fees, benefiting from the Project and making forward adaptation. In some projects that involve the relocation of urban residents, the affected poor population may suffer from reduced income sources (e.g., rent income) and damage to existing interpersonal relations. In addition, after the Project is completed, increased sewage and waste treatment charges may increase the burden on urban poor households.

However, the project design covers both rural and urban poor population. From the following perspectives, the existing project plan and design will not marginalize the poor population or create more poor population: First, the Project will improve the living environment and conditions, and improve the health level of the poor population; second, the Project will also provide job opportunities to the poor population and increase their income; third, after the Project is completed, the preferential charging policies for the poor population will alleviate the burden on the poor population effectively; and fourth, the Resettlement Action Plan (RAP) focused on the cultural and development needs of the poor population will help the poor population restore livelihoods and offer development opportunities.

3.Involuntary resettlement arising from the Project: Land acquisition and house demolition will lead to changes in livelihoods and reduced income of involuntarily displaced persons, and may also result in a series of potential and long-term social, cultural and mental adjustments.

4.Progress of payment, willingness and ability to pay of the affected areas:A preferential policy is in place on the payment of charges by the poor population in Zhaoyang District. Certified five-guarantee families, some disabled people (unsecured subsistence, and holding a Level 2 or above disability certificate) and other groups with living difficulties are exempt from water charges (including sewage treatment charges) for 3 m3 per month-household. The SA team has found through door-to-door interview and FGD that both rural and urban residents can afford the prevailing water rates, and are willing to pay the costs for the supporting facilities (water meter, etc.) to be purchased for the Project.

1.Behavior of the affected residentsand environmental protection:This report pays particular attention to how the environmental protection awareness and lifestyle of the affected groups are suited to the objectives of the Project, and thinks that the environmental issues arising in the affected areas are closely associated with the lifestyle of the affected groups in the affected areas.

2.Involvement of the primary stakeholders in the Project:In the fieldwork, the SA team conducted free, prior and informed consultation with the primary stakeholders by means of FGD, interview, drawing and ranking, and made an analysis of development issues, needs for the Project, impacts of the Project and suggestions for the Project together with them. On this basis, the SA team has developed the participation outline for the primary stakeholders.

The SA team thinks the social benefits of the Project are embodied mainly in the following:

1.The Project is an integral part of ZhaotongMunicipality’s effort to improve the environmental quality of key river basins and urban areas, drive the urbanization of Zhaotong Central City and implement a sustainable development strategy, and a priority action for the state, YunnanProvince and ZhaotongMunicipalityto drive industry restructuring through urban improvement. All subprojects are urgent in the local socioeconomic development process today. The implementation of these projects will play an active role in improving basin and regional environmental quality, urban environment and living conditions, expanding spaces of urban development, improving urban image and investment environment, and promoting urbanization.

2.The promotional effects of the Project to urban economic development will be shown over a long term. These effects mainly include: (1) improving urban environment; (2) improving urban infrastructure; (3) laying a foundation for the development of Zhaoyang District’s tourism, agriculture, service and other related industries; (4) providing job opportunities to related industries during and after the construction period; and (5) providing a guarantee for further urbanization.

3.The Project will also drive the institutional capacity building of the environmental protection bureau and other related departments in the affected areas. Applying the advanced project management philosophy and approaches of the World Bank to establish an advanced office management system can help train a number of management personnel for environmental and World Bank projects, deepen these departments’ understanding of the project team and international cooperative projects, and expand the Project’s social influence and benefits. In addition, the Project will also foster and enhance the environmental protection awareness of the affected residents.

4.The Project covers both rural and urban poor population,and will improve the living environment and conditions, and improve the health level of the poor population. The Project will also provide job opportunities to the poor population and increase their income.

The potential risks of the Project identified by the SA team include:

1.Resettlement risks:Both the river management project and the northern area water supply and pipeline project involve land acquisition and house demolition, which are the main potential social risks of the Project.

2.Risk of low ability to pay of the urban poor population:After the Project is completed, some environmental charges will be added, which may increase the financial burden on the urban poor population.

3.Risk of secondary pollution:During the treatment of urban sewage and river silt, pollutants may pose negative impacts in respect of air, water and soil pollution to the local residents due to their own characteristics.

4.Risk of fulfillment of project objectives and continuation of residents’ lifestyle: Some urban and rural residents have not realized that they are also a pollution source to rivers, nor have they realized that they must behave themselves to purify rivers and control pollution.This might be adverse to the fulfillment and continuation of the objectives of the Project.

5.Risk of residents’ environmental awareness and environmental protection:The primary stakeholders have neither realized the impact of their own behavior on the ambient environment, nor have they realized that they are one of the subjects of environmental management. This will be adverse to the involvement of the primary stakeholders in the Project during the whole project lifecycle.

6.Risk of subsequent project management:Subsequent project management is a key to the continuation of the effects of the Project after the end of the implementation period, and also an important indicator of the Project’s sustainability.

7.Risk of institutional capacity building:Ensuring institutional capacity building can adapt to the continuation of the nature of different projects, and is an objective need to relieve environmental issues and an important guarantee of successful project implementation.

8.Conflict between residents and construction:The construction process will bring conveniences to the residents’ life, and may cause local public security issues. If such negative impacts cannot be avoided or alleviated effectively, there is likely to be conflict between the residents and the implementing agencies, thereby affecting the progress of construction.

9.Risk of compensation for land acquisition:The Project involves an extensive area of land acquisition and a complex mix of land types. The affected areas have been subject to land acquisition many times. Since the compensation rates for land acquisition of different Xiangs, towns and sub-districts in the affected areas vary, and the title to part of the acquired land has been changed repeatedly, there is a certain risk in solving the problem of compensation for land acquisition in different areas in the Project.

10.Risk of protection of cultural relics:The Project involves the conservation of temples near rivers and water sources. In the northern area water supply and pipeline project, the Dalongdong water source is very close to the DalongdongTaoistTemple,and the surrounding area has been planned for an urban park. Ensuring the conservation of historical and cultural relics after the water source conserve has been delimited is an important prerequisite to avoiding the risk of cultural relic destruction arising from the Project.

Aiming at the above possible social risks, the SA team has proposed the following suggestions:

1.Optimizing the design:The employer and feasibility study agency of the Project are advised to minimize the size of land acquisition and house demolition involved in the Project, and employ advanced environmental protection measures to avoid the possible secondary pollution issue. For the sources of pollution near the site of the northern area water supply and pipeline project, it is advised to integrate project planning and construction with the management of the surrounding environment.

2.Conducting participatory activities, and involving the primary stakeholders in the design, implementation, management and supervision of the Project. The employer, the project management office (PMO) and the SA team should develop the participation outline of beneficiaries, and conduct monitoring and evaluation of participatory activities to ensure that the primary stakeholders are involved during the whole project lifecycle from preparation, design and implementation to monitoring and evaluation, and build up a sense of subject for environmental protection. For the Dalongdong water source, the Dalongdong Water Source Administration led by the district government and involving the Dalongdong Taoist Temple Management Committee, the waterworks, the municipal forestry bureau, Dalongdong Travel Agency and local residents to coordinate and strengthen the management of the Dalongdong water source.

3.Giving education and training on environmental knowledge and public health: It is advised that the competent department of the government should give training on state and local environmental indicators, and environmental protection regulations, and training on water conservation, civil treatment of sewage and waste, non-point pollution control, waterborne disease prevention and waste recycling to the whole public in conjunction with the publicity department, the education bureau, the environmental protection bureau, the broadcast and television bureau, newspapers, sub-districts, Townships, towns and neighborhood committees/villages, so that the affected residentscan realize which lifestyles may affect the ambient environment.

4.Developing a rational RAP:The PMO, the resettlement plan preparation team and the employer are advised to ensure that the standard of living of the displaced persons is at least not reduced due to the Project in light with the applicable policies and on the basis of consultation with the affected people, taking into account any negative impact on the traditional cultures of ethnic minorities due to the impact on their land and natural resources; further resettlement effort should be paid to minor-ethnic-minority displaced persons and their communities, and relatively poor displaced persons.

5.Providing job opportunities:The PMO, the employer and the construction agency are advised to provide job opportunities to the displaced persons, urban and rural poor people, women and ethnic minorities in conjunction with the civil affairs bureau and the labor and social security bureau, so that they can be involved in project construction.

6.Enacting and enforcing preferential charging policies for the poor population: The PMO, the employer and the price bureau are suggested to enact charging policies suitable for the local poor population on the basis of public hearing.

7.Formulating rational compensation rates for land acquisition: The PMO, the employer and the departments concerned are advised to listen extensively to the requirements of different groups for compensation for land acquisition, and formulate feasible compensation rates and supplementary implementation procedures for the whole district with the assistance of SA and involuntary resettlement experts.

8.Maintenance of safety and convenience during construction: The employer and the construction agency are advised to arrange the construction schedule taking the objective production and living needs and habits of the local residents into full consideration during the construction period.

9.Institutional capacity building:It is advised to define the rights and obligations of the construction, management and maintenance agencies in the central city sewage treatment and intercepting sewer project, and how proceeds and costs should be shared; in the river management project, it is advised to set up an environmental management agency to solve the problem of overlapping river management, strengthen the monitoring and evaluation of the surrounding areas and environment, and strengthen law-enforcement capacity.