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

2. World Bank Policy OP 4.12

3. 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.

4. 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

5. 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

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

7. 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

8. Process

9. Grievance Procedure

10. Land Reclamation

11. Centralized resettlement sites

12. Infrastructure Improvement

13. 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
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14. 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
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15. 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

16. 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

17. Hubei Province Shared Bank Experience in its funded projects

18. Jiangxi Expressway in China

19. Yiba Expressway in China

20. Fuzhou Urban Transport Proj.

21. Fuzhou shared Bank Experience in …

22. Questions