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When aligning the route, the following principles have been followed: (1) “being close to the
urban area but not entering into the urban area”, namely, avoiding cities, towns and densely
populated residential areas; (2) reducing house dismantling as much as possible by aligning
the railway along the village sides rather than through its centre, and occupying as little fertile
farmland and economic forest as possible; (3) being far away from or avoiding natural scenic
spots, water source areas and other facilities sensitive to vibration and noise; and (4) being
beneficial for improvement of investment environment along the corridor, promotion of
economic development and creation of preferred social economic benefit.

Obviously, a key design principle was to minimise the land acquisition and house demolition of
the Project. Given the alignment optimisation based on the overall Project cost minimisation,
in the Feasibility Study, the resultant amount of land acquisition is the lowest among major
alignment alternatives (See Table 2). The unavoidable resettlement impact could not be
minimised further at the project feasibility study stage, which also reflects AP’s preference that
if unavoidable, they would like to demolish houses rather than lose fertile land. During the
preliminary design and detailed design phases, minimisation of land acquisition and
resettlement will be further considered.

Table 2 - Comparisons of Major Alternatives
                                   Recommended          Length of         Total              Total land
                                                                                                         House to be          Total cost
          Sections                (underlined) and      Alignment      Earth/Stone      *   acquisition
                                                                                                        removed (M2)         (CNY10000)
                                    alternatives           (km)         Works(M3)              (mu)
 I. Track Connection Options Dali East connection scenario has increased invest about CNY 438 million; however, this scenario has
     Dali East vs. Dali Station avoided the disruption of national protected Dali Ancient Town Area in the west of Erhai Lake.
                                 Accordingly, the densely populated area with enormous fertile land acquisition and resettlement has been
 II. Alignment alternatives
 1.Haidong--Wenbi                Near mountain side           4.5           93644       …         44.1           0            12246.75
     CK18+850~CK23+350 Near Lake side                       4.539         140874        …         65.7          970          12327.05
 2. Bijiashan Tunnels            Short Tunnel Senario        12.1           96481       …        115.2           0            41849.61
     CK63+000~CK75+100 Long Tunnel Senario                  11.42         146390        …        156.8           0           50265.98
 3.Xiyi--Changtou                Eastern Alignment            15           698820       …        616.5        10032           29617.77
      CK89+900~K104+000 Western Alignment                    15.1          835184       …        621.1         6840           35671.62
                                                       Compared with the western alignment, the eastern alignment, shortened in length
 4.Changtou--Lijiang South                             by 2.281km , with bridges and tunnel shortened by 2.392 km , has more
                                 Heqing East
 Station                                               advantage. Meanwhile, the engineering geographical features are superior to the
 CK108+800~CK155+200                                   western alignment. And the most important is that the station location is in line with
                                                       the local county town planning.
                                                       Tunnels may cut off the rock water system and disrupt the spring water sources
                                 Heqing West           which will affect the drinking water system of local farmers, and even damage the
                                 Alignment             nearby ecological system.
 5.Location of Lijiang Station Eastern Alignment       Lijiang Station sited in the east mountain slope is in line with the overall urban
                                 Western Alignment     planning of Lijiang City, which is not far from the downtown area.
  Sub-total Recommended (a)                                   78          888945        …        775.8        10032          83714.13
   Sub-total of alternatives (b)                           79.601        1122448        …        843.6         7810          98264.65
      Difference (c)=(a)-(b)                               -1.601         -233503       …        -67.8         2222          -14550.52
 N B * Other items include tunnels, large to medium bridges and underpasses, etc.
**The recommended alignment sections are underlined. Source: Project Feasibility Study, 2004.

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Land and structures in the following categories have been estimated:
•     Land: irrigated, non-irrigated (dry), forest, barren, residential. A distinction is made
      between land required permanently and temporarily (i.e. during the construction period
•     Trees and young crops: economic trees and timber trees;
•     Housing categorized by private and public used houses;
•     Structures and fixtures: enclosure wall, and tombs;
•     Infrastructure: e.g. power lines and telecommunication lines;
•     Non-residential establishments: e.g. schools, enterprises.

Table 3 summarises the principal categories of land and property acquisition. Over 56 % of
the land to be acquired is currently cultivated land (3726 mu or 248 ha, accounted for 2.5 % of
total village cultivated land area), and nearly 70 % of this land is irrigated. Most of the
remainder are forestland/bush land and barren slops. Around 680 private households will
require relocation, as will one school and one house in the brickfield. Over two thirds of the
land acquisition and of the property demolition will occur in Dali Prefecture. Temporary land to
be rented during construction will amount to 1600 mu (107 ha).

Table 3 - Land and Property Acquisition (summarised)
                                                                         COUNTY                        TOTAL
                                                           Dali           Heqing        Gucheng
No. of Townships crossed                                    6               5              2            13
No. of Villages crossed                                    21               25            10            56
Permanent Land Requirements (in mu)
                                                             Dali Prefecture            Lijiang City
   Irrigated Land                                                  747                       394        1141
   Dry Land                                                       1932                      1086        3018
   Total Cultivated Land                                          2679                      1480        4159
   % Irrigated                                                   27.9 %                    26.6 %      27.4 %
   Housing Plot                                                    69.6                       9          78.6
   Orchard /Economic Forest                                        63.5                      53         116.5
   Timber Forest                                                  981.7                      55        1036.7
   Other /1                                                        450                      71.6        517.1
   Total land                                                     4244                      1669        5913
   % Cultivated land                                             63.1 %                    88.7 %      70.3%
Temporary Land Requirement (mu)                                                                         1600
Private Households requiring relocation                                                                  680
Floor space (m2)                                                                                       120314
Schools /Enterprise requiring relocation                                                                   2
Floor space (m2)                                                                                         594
   Total Floor space                                                                                   120908
Road rerouting                                                     14.79                   4.64         19.43
Power lines (km)—single line length                                 47                      10            57
N.B.: i.e. bush land barren mountain slope and barren land and 70mu state owned land.
Source: Estimated based on Feasibility Study and field survey, 2004

The impact of land and property acquisition will be widely spread with over 56 villages in 13
townships losing land or property. All the villages will lose land and 18 villages will lose

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property. One school - Beixihe Primary School in Heqing County and one house in Xiahe
Brickfield in Dali City will be affected by land acquisition.

Infrastructures that will be affected include power lines, telecommunication lines. In addition,
existing roads and irrigation systems will be “cut” by the railway and will require rehabilitation.
However, the restoration of the infrastructure will be included in the civil work of railway
construction. A condition of these contracts will be that the infrastructure is maintained at all
times during the construction period.


2.3.1      Population Requiring Resettlement

Based on the feasibility study and field survey, it is estimated that 680 private households will
require resettlement, and the total number of persons affected will be around 3,150.

One primary school and one house in Xiahe Brickfield will be affected by the demolition
(whole or partial), with total students, teachers and workers 150 persons.

The total number of people affected by demolition is therefore around 3,300 persons.

2.3.2      Population Affected by Loss of Land

The Project will permanently acquire 5913 mu (394 ha) of land, of which 4159 mu (70%) is
cultivated land, 116.5 mu (2%) is orchard, 1036.7 mu (18%) is forest, 78.6 mu (1%) is house
plots and 517.1 mu is other/wasteland. This impact is equivalent to 3,705 persons losing all
their cultivated land.

If the land can be re-distributed among farmer households in the same land loss group, then
all farmers in the land owning group will share the land loss. For example, if the 4159 mu
cultivated land loss is shared by all villagers in the affected villages (120,694 persons), each
person will only lose 0.03 mu; thereby all the farmers in the affected villages would be
indirectly affected.

2.3.3      Total Population Affected

The temporary land occupation amount is 1600 mu, but most of the land will be barren land or
mountain slope. There are 250 persons who will be directly affected.

The total population directly affected by land and/or property acquisition will thus be 7709

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