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					Social Monitoring Report




Project Number: 35354
April 2010




PRC: Lanzhou-Chongqing Railway Development
– Social Action Plan Monitoring Report No. 1




Prepared by: CIECC Overseas Consulting Co., Ltd
Beijing, PRC

For: Ministry of Railways




This report has been submitted to ADB by the Ministry of Railways and is made publicly available in
accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of
ADB.
 ADB LOAN                              Social External Monitoring Report –No.1



              The People’s Republic of China
                                    ADB Loan


 LANZHOU –CHONGQING RAILWAY PROJECT



 EXTERNAL MONITORING & EVALUATION OF


       SOCIAL DEVELOPMENT ACTION PLAN



                                Report No.1




                                Prepared by

             CIECC OVERSEAS CONSULTING CO.,LTD


                       April        2010             Beijing

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                       TABLE OF CONTENTS
1. MONITORING AND EVALUATING OUTLINE……………………….………………………3
    1.1 THE PROJECT PROMOTED SOCIAL DEVDLOPMENT ALONG THE RAILWAY
               OBVIOUSLY…………………………………………………..………….…3
     1.2 THE PROJECT PROMOTED THE POOR PEOPLE’S INCOME AND REDUCED
          POVERTY……………………………………………………………...………………….5
2. PROJECT CONSTRUCTION AND SOCIAL DEVELOPMENT..……………………….6
      2.1 MACRO-BENEFIT OF THE PROJECT………………...…………………………….7
      2.2 THE EXTENT OF LAND ACQUISITION AND RESETTLEMENT OF PROJECT
          AND RESETTLEMENT RESULTS…………………………………………………....8
      2.3 INFLUENCE AND PROMOTION OF PROJECT CONSTRUCTION AND LOCAL
           ECONOMICDEVELOPMENT………………………………………………………10
       2.4 JOB OPPORTUNITY FROM THE PROJECT…………………………………… 14
       2.5 PURCHASING LOCAL BUILDING MATERIALS……………………………… 16
       2.6 “GREEN LONG PASSAGE” PROJECT IN PROCESS..………………………… 16
 3. SAFETY MANAGEMENT IN CONSTRUCTION AND HEALTH MAINTENANCE OF
     BUILDERS………………………………………………………………….…………… 20
 3.1 SAFETY REGULATION AND OPERATION OF CONSTRUCTION...……………… 20
 3.2 RIGHTS MAINTAININGOF STAFF ………………………………………………………21
3.3 HEALTH MAINTENANCE..…………………………………………………………… 21
4 PROJECT CONSTRUCTION AND INFLUENCE OF POVERTY……………………..22
 4.1 POVERTY REDUCTION METHOD BY LOCAL GOVERNMENT IN THE AREA OF
     PROJECT……………………………………………………………………………………22
 4.2 INCOME IMPROVERMENT OF POOR FAMILY….………………………………….23
 5 PROJECT CONSTRUCTION AND WOMEN DEVELOPMENT…..…………………24
5.1 EVALUATION METHODOLOGY.……………………………………………………….24
6 CONCLUSIONS AND PROBLEMS..……………..……………………………………… 27
7 Annex: Social Development Action Plan of Lan Yu Railway Project..……….…………..29
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                                            Foreword
Lan Yu railway project is 819.975 km long. In which, the section of Lanzhou to Guangyuan (free) is
491.437Km,Guangyuan (including) to Chongqing section is 328.538Km long. The new lane from
Nanchong passing Guangan to Gaoxing is 93.639km long. Planned investment amount to 82.9146
billion yuan. among which ,300 million U.S dollars from ADB loans. The project construction has a
period of 6 years. The scope of land acquisition and resettlement involved in Gansu, Sichuan, Shaanxi
and Chongqing provinces and one city of 7 prefecture-level cities, 20 counties, 77 towns and 246
villages. Yuzhong County, Lanzhou City, Gansu Province, Chengguan District 2 county (district),
Dingxi Minxian, Zhangxian, Weiyuan County, Lintao County, stability County 5 counties (districts),
Longnan City, Wudu District, Dangchang County 2 County (area); Hanzhong City, Shaanxi Province in
Ningqiang County 1 County; Sichuan Guangyuan overturned District, Lee state area, Yuanba, Cangxi
4 counties (districts), Nanchong City Langzhong, Nanbu, Jialing District, along Qing District, 4 counties
(districts), Guang'an Wusheng County, a county (district); Hechuan District.

The railway began in Lanzhou City, Gansu Province, Lanzhou hub, set along the west through the city
of Gansu Province, Gansu and the city of Hanzhong City, Shanxi Province, Sichuan Guangyuan,
Nanchong City, Guang an City, Chongqing City, Hechuan District, and other administrative area, the
end arrived in Chongqing in Chongqing hub, and from the Nanchong lead to the construction of
single-track railway through Guang'an Nanchong to Gaoxing section. The ine runs roughly
north-south.

The project construction has a period of 6 years.

Main Line Technical Standards of Lan Yu Railway:

Rail level   National I
Number of main lane: Lanzhou-Chongqing two-lane, Nanchong east to Gaoxing single-lane
Limiting gradient: Lanzhou to Guangyuan 13 ‰, Guangyuan to Chongqing, Nanchong east to Gaoxing
6‰
Objective speed: Lanzhou-Chongqing 200Km / h, Nanchong east-Gaoxing 160Km/ h
Category of traction: Electric power
Load-pull: 4000t
Minimum bend radius: general sections of Lanzhou-Chongqing Section: 3500m, difficult sections:
2800m; general section of the Nanchong east- Gaoxing: 2000m, difficult section: 1600 m
Classification of locomotives: Lanzhou-Chongqing: EMU, SS7E; truck SS7;
                     Nanchong east- Gaoxing: SS7E, trucks SS7
Effective length of arrival and departure line: single: 850m, double: 880m




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The larger rivers crossed by the Line include the Yellow River, Weihe River, Tao River,
Bailong River, Jialing River, Fu River, river drainage, etc.. Method used in this project is
that bridges replace the high embankment; there is a big number of bridges in this project.
The basis of non-section area and spoil of non-cross river bridge has some influence to
the ecological environment along the line, at the same time, crossing river bridge
construction has influence on water quality and aquatic life to some extent.
Total amount reaches 228.805 million cubic meters of earth and stone, of which,
177,768,200 cubic meters of excavation, filling 51.0368 million cubic meters; the entire
line consists of super large, large, medium bridges amount to 433, the total length extends
to 181,788 meters; the number of tunnel reaches 267 and has a general of 596.8Km, in
which ,11 tunnels are more than 10Km long, total length is 168Km;main line track is
819.975Km, hub and contact line reaches 180Km; 23 traction substations; the project
takes across the board area of 5218.2 hm2, permanent land 3289.7hm2, temporary sites
1928.5 hm2.

Beijing ZhongZi Overseas Consulting Co., Ltd. accepted the engagement of the Asian
Development Bank and the Capital and Technology introducing center of Railways
Ministry, give a whole external monitoring on the region's social development affected by
Lan Yu railway project which uses ADB loans. Beijing ZhongZi Overseas Consulting Co.
Ltd set up an investigation team to monitor and evaluate the social development outside in
February to March, 2010, and do evaluation survey along the railway project.
During the investigation, the Chinese Ministry of Railways, the project owner Lan Yu
Railway Company, and construction company involved in the railway and Gansu, Sichuan,
Shanxi and Chongqing municipalities and local governments provided information and
data, these information and data is essential for external monitoring agency to complete
the railway Lan Yu project‘s monitoring and assessment , we want to express our sincere
thanks together to those organizations who provide strong support and help.




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                    1. MONITORING AND EVALUATING OUTLINE


1.1 The project promoted social development along the railway obviously
1. Lan Yu Railway is causing changes in the local economy in a positive way.
   construction along the railway will improve the traffic environment, there will be a
   positive impact on the local socio-economic development . Local industry that has
   the resources will be promoted to help attract foreign investment and activate
   elements of the local economy and create more employment opportunities. For
   instance, counties in Gansu Province / District has begun to adjust to local social
   and economic plan, including plans to build strategic loading point together with
   the railway construction and make future arrangements for socio-economic
   development by using railway.
2. Lan Yu railway projects has provided permanent land 28592.03 hectares; complete
   833836.00m2 of demolition, 2980 affected families and 9540 people by demolition .
   Gansu, Sichuan, Shanxi and Chongqing provinces and one city of 7 prefecture-level
   cities, 20 counties, 77 towns and 246 villages. 19 settlements housing demolition
   received special support from the project in order to properly resettle the affected
   people and to ensure their housing reconstruction after demolition. Roads, irrigation
   facilities, power lines, communications facilities and other infrastructure caused by the
   railway construction is being restored; Resettlement department pays a lot of attention
   to community residents’ various types of requisition and complaints caused by
   demolition and construction works and they were solved one by one carefully. Such as
   the corner problem, construction noise, temporary land reclamation, road access
   issues; Various vulnerable groups’ problems and impact created by the project was
   taken good care of and with the assistance of the local community, the resettlement
   department will help to reach the renewal of life. Overall, although the recovery of life
   is undergoing, but what can be confirmed is that conditions of most land acquisition
   and resettlement of affected residents has been greatly improved.
3. Lan Yu Railway has just entered the first year, huge investment in public works,
   building materials procurement and tens of thousands of builders of living has greatly
   stimulate the regional social development. The project contractor building this railway
   project has employed 71.1 million manday, including 13.2 million manday direct
   employment along the railway ,which is 18.6% of the total amount of labor. The
   employment of local poor villagers reaches 10.7 million manday, accounted for 81% of
   hired staff. The employment of local women about 1.0 million days, accounting for
   locally hired staff, 7.5%; people hired from the local railway construction in the poor
   village received 80-120 yuan /day. Poor families participated in railway construction
   work receive at least the a total income of 11.989 million yuan, women employed
   received at least 969,000 yuan, at least 68 various service institutions was provided to
   the railway construction.
4. Local materials procurement of construction comes to a cost of 2.53 billion yuan.
   Among them, 260 million yuan of river sand to local government, 570 million yuan of


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   cement ,250 million yuan of stone, 690 million yuan of steel , and 750 million yuan of
   other building materials; at the same time, 76.55 million yuan of living expenses by
   engineering contractors construction workers are paid to the local government. In
   material procurement, construction materials provided by the poor families are 89.72
   million yuan, consumer goods supplied by the poor families to the construction team
   are 15.61 million yuan.




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1.2 The project promoted the poor people’s income and reduced poverty

5. Undoubtedly ,the project is positive in the poverty reducing and raising the level of
   benefit. In addition to this help effect, full compensation for land acquisition and
   resettlement are properly placed is also a factor. Besides, the benefit contains
   employment opportunities of labor-poor households by railway construction, or to
   provide building materials which can meet quality requirements, or to provide a variety
   of ways of living services to the railway constructions to increase family income.
6. Through the provision of employment services, the quality building materials, or
   engaged in providing transportation services to the railway construction site, or to
   provide live access to the construction team , Poor families along the railway
   construction get income in different ways . So far in this incomplete data, 10.7 million
   manday employment opportunities was provided to poor families, the poor received
   11,989,000 yuan of revenue, (Table 2-2); the same time, by providing building
   materials to local railway construction, poor people get a revenue of 89.72 million
   yuan.




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              2 PROJECT CONSTRUCTION AND SOCIAL DEVELOPMENT
7. Monitoring and evaluation on the impact Yu-Lan railway construction caused to social
   development is based on the PRC Ministry of Finance and the Ministry of Railways
   signed with the Asian Development Bank, the "About Lanzhou - Chongqing Railway
   Project Loan Agreement" associated "Action on Social Development Scheme"
   framework ( Annex 1), the "plan" put forward the following measures what should be
   adopted and was supervised:
       Job opportunities created by railway construction
       Purchasing local materials during construction
       Job opportunities created during operation of railway
       Control of AIDS/V.D.and human trafficking
       The recovery of people who are influenced by the resettlement especially
       disadvantaged groups
       Railway Construction Safety
       Protect group away from disturb and damage caused during the construction and
       operation
       Keep the continuity of family’s taking off deficient
       Pay more attention to the tour exploration of the poor people、women、minoities
       and other vulnerable groups

8. Lan Yu railway construction project another important north-south direction traffic
   railway in northern China, no doubt that the project will result in the macro
   socio-economic effect, but the effect long the railway communities and the negative
   impact should be paid positive attention, and measures should be taken to reduce or
   eliminate these negative effects, making the railway construction be an opportunity to
   improve the living standards for the poor and underdeveloped regions, especially
   how to guide relevant departments to achieve the social goals to become an important
   project management with efforts during railway construction. Lan Yu railway projects
   and social development plan takes on the multi-dimensional assessment of indicators
   to implement the external monitoring and evaluation agency and monitoring
   information data indicator survey and analysis methods to understand the actual
   socio-economic impact and potential integrated socio-economic impact during Lan Yu
   construction. The following aspects of monitoring indicators are specifically used in
   Monitoring assessment .
        Structure of labor in Lan Yu project
        Building material structure along the Lan Yu construction
        Influence of operation and living consumption by construction teams
        Local society’s developing adjustment caused by the Traffic improvement
        expectations of Lan Yu railway project.
        Improvement of infrastructure along the railway project
        Improvement of local people’s living conditions
        Improvement of local poverty conditions and income increase of local families


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        Idea changes of local people

9. In the current social development action plan external monitoring evaluation,
   monitoring investigation officers talked with the local land acquisition relocation and
   resettlement agency staff, cadres affected by land acquisition and resettlement along
   the railway .at the same time, they have extensive contact with construction
   contractor , supervision company participated in railway projects of Lan Yu to observe
   the socio-economic situation of the community, in order to acquire the necessary
   monitoring and evaluation of relevant data and information as the basis of this
   monitoring and evaluation.

2.1   MACRO-BENEFIT OF THE PROJECT

10. Lan Yu is a key railway project for national and provincial construction. As a most
convenient gold channel to the north from the south, and for achieving the strategic goal
of China's western development, improve the railway network layout, promotion of mineral
resources of Gansu Province, Shaanxi Province, Sichuan Province and Chongqing City,
to accelerate poverty regional poverty alleviation, promoting its economic take-off and
other planning objectives, Lan-Yu Railway project is a promising way. The distance will be
shortened to 6 hours and 4 hours from Lanzhou to Chongqing and Chengdu. Applications
are being built together with the Xi (An) Lan (Zhou) PDL, Lanzhou will gradually be a
6-hour economy as the center circle of Gansu Province. In this economic circle, Xi'an,
Yinchuan, Xining and Chengdu, Chongqing, southwest, northwest city are included.
Especially for the center coordinates of northwest Gansu province, by Lan Yu, Cheng-lan
Railway, together with the southwest region as a whole, economic development was a
merging of the trend - the rise because of railway ,which is "Gan Chuan Yu Economic
Corridor" ,is worth waiting.If Lan Yu railway crosses from Chongqing to Huaihua,
Shaoyang, Hengyang, Chenzhou, Guangzhou, expanding for the Lan Guang Railway, will
form an aorta connecting northwest, southwest and the Pearl River Delta. If it crosses
from Lanzhou to Chongqing firstly and then crosses Huaihua, Wugang, Yongzhou,
Binzhou, Ganzhou, and finally Xiamen, expanding for the Lanxia railway, it will be a
channel connecting the Northwest, Southwest and Min Delta. Lan Yu line goes through
Linxia Hui Autonomous Prefecture of Gansu Province and Tibetan Autonomous
Prefecture, Gansu, and Sichuan's Aba Tibetan and Qiang Autonomous Prefecture in close
proximity, these three states are border land of Tibetan, Hui, Qiang, other ethnic minorities
and Han .Especially the 600 km section of Lanzhou-Guangyuan run throughout the
ZangHui residence , the construction of the railway Lan Yu is conducive to the
development of local national economy, changes in ethnic area’s closing and
backwardness, form a lifeline connecting the southwest and northwest , expanding into
Qinba economy corridor. This has a very important role in enhancing national unity,
ensuring peace and maintaining political stability in the western region.
Currently, due to constraints of traffic, especially suffering the lack of rail transport,


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economic development along the Lan Yu railway is extremely backward, 25 counties
crossed in the line contains 13 key counties for poverty alleviation, 4 provincial key
county-level poverty alleviation. Many county farmers’ net income is less than 2,000 yuan.
However, Lan Yu Railway is rich in agricultural resources, non-ferrous metal resources
(Zn), coal, building materials, resources and cultural tourism resources. Lan Yu line
construction is beneficial to the development of a variety of resources, and turning the
resource advantage into economic advantage, speeding up and improving the living
standards of the old and poor regions effectively along the route. As a national
post-disaster pilot and determining project, Lan Yu Railway will provide long term support
of infrastructures, for post-earthquake reconstruction and economic and social
development. it will fully reflect the steadfast support of the restoration and reconstruction
of affected areas, and will encourage people’s confidence and determination to speed up
reconstruction of areas affected by earthquake. Lan Yu Railway is not only a big
communication channel from northwest to southwest and southeast coast, but also an
international channel connecting Central Asia and Southeast Asia.

2.2 THE EXTENT OF LAND ACQUISITION AND RESETTLEMENT OF PROJECT AND
RESETTLEMENT RESULTS

11 the biggest impact for Lan Yu rail projects comes from the land occupied by
   construction and house demolition. The first phase of the external resettlement
   monitoring evaluation report by the external monitoring agency implemented the
   details that the population affected by the railway construction on land acquisition and
   house demolition so far (see the external resettlement monitoring and evaluation
   report in Section 5).Overall situation now is: Lan Yu railway projects provide 28592.03
   hectares of permanent land; complete 833836.00m2 of demolition, 2980 households
   affected by relocation, 9,540 people affected by demolition . land acquisition and
   relocation along the railway line have affected the working and living of Gansu,
   Sichuan, Shaanxi and Chongqing provinces and one city of 7 prefecture-level cities,
   20 counties, 77 towns and 246 villages and community residents.




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           table2- 1      land acquisition nd removal affected by Lan Yu project


                                     land acquisition                              removal

                         Permanent (Mu)           temporary(Mu)                   house(m2)
N0.       region
                         2009
                                                                          2009
                        annual      Total      2009 annual     Total                          Total
                                                                         annual
                       (actual)
         Lanzhou        3764.73     3764.73                                 38323.00         38323.00
         Yuzhong        2227.00     3576.00                                110390.00         135890.00
                                                  6050.00    6050.00
 1        Dingxi        2103.00     2927.00                                176960.00         194005.00
         Longnan        1724.00     3002.00                                222341.00         275793.00
         Subtotal                  13269.73                  6050.00                        644011.00
         Ninqiang                     73.70                  280.00                          500.00
 2
         Subtotal                     73.70                  280.00                          500.00
        Guangyuan       2000.00     3642.36        1000.00   1000.00                         28000.00
        Nanchong        4100.00     6080.66         370.00    370.00                         22850.00
 3
         guangan        2840.78     4228.78         586.28    586.28                         137700.00
       Subtotal                    13951.80                  1956.28                         188550.00
         Hechuan        1656.80     1656.80                   380.00                           775.00
 4
       Subtotal                     1656.80                   380.00                           775.00
 5     Total                       28952.03                  8666.28                         833836.00




12 Facing the huge impact on the life caused by land acquisition and resettlement along
the line of the project, project owners and local governments’ resettlement sector attached
great importance, project affected people are properly placed and taken good care of
through policies, institutions, compensation and resettlement funds and management
procedures, , at least 4.01968 billion yuan has been allocated for compensation for
resettlement. In resettlement work, Sichuan Province and Chongqing Municipality also
allocated additional costs to purchase social insurance for landless farmers directly
affected in the project. In order to properly resettling the affected people and ensure that
housing reconstruction after the demolition, there will be 19 settlements full range of the
program being special focused to support the building. Infrastructures damaged by
construction projects along the railway facilities, including a large number of roads,
irrigation facilities, power lines, communication facilities are being restored. All kinds of
complaints and appeals from community residents caused by land demolition and
construction works has been taken attention by the resettlement department attention and
is seriously addressed one by one, such as the corner to the problem, construction noise,
temporary land reclamation, road access issues and Etc. The direct impact on production
and living of various vulnerable groups created by project takeover has been taken


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attention and got assistance of the local community, assisted by the resettlement
department in order to achieve renewal of life. Overall, although the recovery is under way
of life,.It can be confirmed that most of the residents’ living conditions affected by the land
acquisition and resettlement have been greatly improved.

2.3 INFLUENCE AND PROMOTION OF PROJECT CONSTRUCTION AND LOCAL
    ECONOMIC DEVELOPMENT

13 As the potential future economic and social effects of traffic in the channel is well
expected, settlement sector along the route has begun taking adaptations to Lan Yu
railway construction to improve traffic conditions in the economic development and
promote local social and economic development. The facts External monitoring agencies
find out along the railway show that, despite stakeholders exist in the railway building, but
the positive trend of social and economic changes caused by the railway construction
along is taking place.

14 Mr.WuJun from land requisition and immigration department of Lan Yu railway
company mentioned the facts that:
1)loading points system funded by the private companies using coal-rich parts and
Strategic mineral resources is taking shape along the railway within the county / district
because of the construction Lan Yu railway. This work is guided by the local government
and local strong mineral developer invested in the project, in which, facilities are
supported by the Lan Yu Railway design institution, support is given by land management,
and the railway station railway station passenger facilities, construction of parallel and
Storage Yard facilities guaranteed conditions for rail transport along the county and district
mineral resources;
2) county / district along is carrying out regional planning for urban development strategies
including transport links around the train station, hotel services, facilities, and. To some
extent, the railway station will profoundly affect the three-, four-city urban development
strategies along. For example, Weiyuan railway station has formed the railway station
development plan;
3) households affected by Demolition of some areas along the railway line will take the
new resettlement program, most of the original cottage living turn into residential housing
and result in a large community home resident. This will profoundly affect their way of life.
The removal of the affected households by concentrated settlements is resulting in a large
community.

15. Mr. Liu Zhongren ,Vice President of Lan Yu Corporation said that: during the peak
construction period in railway construction particularly, the concentration of investments
must pull the city's GDP growth rate --- a substantial increase in agricultural and service
industries demand for railway construction on the building materials and personnel
requirements of the construction team is directly promoting the rapid development of


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tertiary industry in our city. A large number of engineering and technical personnel and the
demand for unskilled workers for Railway construction will also create more employment
opportunities, increase income, and achieve harmony together with the local railway.

16 Mr. Zhu Ping di(15825826319) , Deputy Secretary for Land and Resources of Min
County in Gansu Province, said: Min county is called the "Millennium medicine villages,"
and China "Angelica town" in the world, Chinese herbal products are exported to China,
Hong Kong, Taiwan and South Korea, Singapore, Malaysia, Thailand, and more than 20
countries and regions, but the absence of rail transport, marketing costs remain high,
directly restricting Chinese herbal medicines and potatoes, livestock, mining and other six
industries. The construction of Lan yu railway makes Xu Shude , the Deputy Mayor Min
County .very excited, he said: "The traffic problem has been plaguing the same as the
yoke of Min County’s development, the establishment of Lan Yu railway station interval is
Min County’s 450,000 people’s strong desire and demand. now dream is fulfilled, as
long as Lan Yu Railway operates, Min County at the junction of the Southwest and
Northwest could reproduce the ancient busy scenes of tea-horse trade. It's built not only
revive Min County’s economy, accelerate the pace of building a well-brought rare
historical opportunity, but also of great practical significance and far-reaching strategic
significance to economic restructuring for Min to play a transport hub and 'dry dock'
position, speed up the county of Getting Rid of Poverty ." a medicine business executives
from Min said :" the Chinese herbal medicines here has to be pulled to the train by car
from Longxi County which is inconvenient and costly and has a long period, through the
railway line Lan Yu, Our ingredients can be directly sent to south ! "

17. Yujingdong, Sectary of Anning district from Lanzhou city, think that: railway goes first if
economy wants to develop. The construction of Lan Yu railway is very important to the
passing through of northwest to southwest, the communication of both place’s economy
and the improvement of logistic. Anning district and National Lan Zhou Economic and
Technological Development Zone carry out the “district together” policy, and it is where
New Lan Zhou town locates, In recent years, through the great efforts" attract investment
Strongly", a number of large projects and the well-known enterprises have settled here,
economic and society develop strongly. Lan Yu Jian railway marshalling yard locates in
Anning District, which played a significant role and support northwest towards the
establishment of our regional logistics center in Southwest China, and also played a
strong support for the establishment of import and export bonded logistics park on the
Qinghai-Tibet. As the project started, there must be formed in the manhole relay regional
flow, logistics distribution center, which requires us to project the future development and
practitioner guidance on the public to fully focus on the features and advantages, to
develop food and beverage, accommodation and other tertiary industries.

18. Wang Daode, Railway construction office in Guangan thinks: there is a majority of
poor and remote areas along the railway of Lan Yu, involving a population of about 3,600


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people, the railway passes through the area rich in minerals, herbs, hydropower and
tourism resources. Chinese herbal medicine resources ranks first in the country in Gansu
Province, Longnan has the country's largest lead-zinc there, construction materials, coal
limestone and other non-metallic ore, rock salt, phosphate, and natural gas reserves are
larger in Guangyuan,. Lan Yu has the advantages of developing unique "red tourism" and
"ecotourism" along the railway. For a long time, due to constraints of traffic conditions,
wealth of resources along the Lan Yu railway is difficult to translate into economic
advantages, regional economic development is lagging behind, there are still 13
state-level poverty counties, after Lan Yu Railway is completed, it will enhance the local
surplus labor force to migrant and accelerate regional industrialization and
urbanization ,played a catalytic role in hematopoietic itself in poor areas, so as to achieve
poverty alleviation. since the implementation of western development strategy, the
Northwest and Southwest exchange of goods between rail grow rapidly, faster than the
national average, passenger and freight transport have greater growth potential, there is a
lager and urgent need for a smooth channel to meet the transportation. Lan Yu is indeed
with the critical mission.

19. Mr. Liu Hubin, Vice Mayor of Guangan said: Zao mountain railway yard and the new
Logistics Park from Lan Yu has been finalized. Zao mountain railway yard and the new
Logistics Park building is significant to further improve the urban functions, accelerate the
development of strong city and tourism and enhance regional economic cooperation and
exchange of great significance. It will form a convenient transportation network, promoting
the logistics, warehousing and other industrial development; it should rely on the park,
drive urban development and expansion and promote sound and fast economic and social
development of Guangan.

20.Director Wang(13508093009) of Railway construction office in Nanchong said: Only
when the function is fine, the basis of regional central cities will be strong. Function
determines the city together, radiation, lead and demonstration capabilities. By upgrading
the status of integrated transport hub, improving urban infrastructure systems, industrial
development, and public service system, further enhancing urban functions is an
important condition for the city turning into a regional center. Regional competition is the
hub of the core dispute. Construction of north-south, linking the east, convenient water
and land transportation. integrated transport hub means a lot to enhance the Northeast
Regional Center of Nanchong city status. Nanchong is an important node in the state of
traffic “five vertical and seven horizontal" and in building an integrated transport hub in
Western pattern of the status with advantage of backwardness. Chengnan and
Chengguang Express changed the Nanchong traffic occlusion of history. Nanyu highway
being built will expand from Chongqing to the North Sea; Guang (yuan)Nan highway
which is about to finish, passes through the Xichong, Nanbu, Langzhong to Guangyuan,
and will expands through north to Lanzhou and Xi'an highway access ; Lan Yu will make
Nanchong a national joint of east -west and north-south railway. Jialing River channel will


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realize the passing through of high-grade ton ship to Chongqing, via the Yangtze River to
the sea. After increasing Gaoping airport routes and flights, the transport capacity will be
gradually enhanced. We will speed up seven highway construction, speed the
construction of railway, waterway, forming the transportation network as soon as possible
to enhance the radiation group of Northeast cities.

21. Lan yu railway uses some of the local railway construction workers and increases their
income. Railway construction contracting sector workers and managers bought daily
necessities, especially vegetables and meat from local villagers to increase the income of
the villagers.

22. Despite Railway land requisition and removal along the region inevitably affects the
local communities especially in rural production and livelihood of community residents,
Lan Yu resettlement departments gives a close coordination and conscientiously fulfill the
commitment to the resettlement plan, changes the negative social impact into the positive
social impact in various ways, which receives affected person and government 's support
along the region while reducing the negative social impact as well. External monitoring
and evaluation agency will monitor detailed the social development action plan in the
report, this report described only briefly.

23. According to the external monitoring and evaluation team along the meta-analysis of
the investigation, two positive effects of trends of Lan Yu railway and a good social impact
communities along the route have been formed. First, Lan Yu railway asked the
companies participating in the construction of the railway when it’s needed to determine
the construction of sidewalks, construction of temporary bridge, and set up the cross for
the convenience of electricity lines, water supply pipeline infrastructure planning, they
should consult with the local county’s community to secure favorable conditions for
construction coordination and construction of the external environment. When the project
is coming to an end at this stage, particularly rapid progress of the works by Ningxia Hui
Autonomous Region and other parts of the western section ,the local community should
not only be required to make temporary use of land reclaimed by the construction unit
back to the original use of state of things, for those pioneer roads and temporary bridges
that may be beneficial to the future of local communities should be kept to reduce local
community’s infrastructure investment, while retaining part of the construction units like
the temporary space , water supply control and power supply circuit. This arrangement
in effect leaves a lot of infrastructure for community development along the railway line
and reduces the local investment in this section, reduces the burden on local residents as
well. Second, the construction required a large number of temporary sites along the red
line along the railway outside the expropriation, some of these temporary sites may be
required due to construction difficulties caused by temporary land reclamation, such as
the system along the beam field due to construction needs to lay a solid foundation, which
left reclamation difficulties. Part of the spoil ground, especially the tunnel construction


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spoil, debris field, is all temporary use of land which is difficult to reclaim. Lan Yu Railway
made up for this reclamation of land all by permanent land acquisition compensation
standards, while recognized them as to the nature of the temporary land as well.
Particular part of the beam field base has been developed for the use of the local
government’s investment and result in an important guide to local projects.

2.4 JOB OPPORTUNITY FROM THE PROJECT

24. By the coordination of local government headquarters and the poor sector, a large
number of unskilled employment opportunities are available to the local poor people and
women during the construction of the railway to receive income.

25. External monitoring team learned from the railway construction contractor that: a large
number of non-technical jobs are available to poor families, employment of local residents
including poor families, labor force, and a minority of women to work along the county /
district. In Gansu and Sichuan provinces, ethnic minority families also got non-technical
types of jobs in the railway construction. According to the incomplete data the monitoring
team got from the construction contractor (Table 2-2):0.711 million Man-day has been
used in the project of Lan Yu, including direct employment of 0.132 million Man-day from
the local villagers along the railway line, reached 18.6% of total. The employment of local
poor villagers reached to 0.107 million days, accounted for 81% of staff that are employed;
the employment of local women is about 10000 days, accounting for 7.5% of local hired
staff, poor villagers got 80-120 yuan / man-days wages from the local employment in
railway construction. Poor families got at least the total income of 11.989 million yuan from
participation in railway construction, women at least 969,000 yuan. There are over 68
various institution services provided to the railway construction.




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  Table 2.2       Situation of employment workers of Lanyu

                                                  workers(man-day)

                                                                                  In which

        Project                                                                                               day-wage                 Women
                                                                                                                          income(10               Service
department/Construction      Total      Local                                                                  (yuan/                 income(10
                                                  Ratio/%      Poor                     Women                             thousand)                units
        bureau             man-day     workers                            Ratio/%                   Ratio/%   work-day)               thousand)
                                                             workers                    workers




      21 bureau             38500      15500        40        12400         80               1550     10         120       148.80       18.60       8

      19 bureau             18960       2275        12         1706         75               182      8          90         15.35       1.64        6
      16 bureau             32970       4945        15         4698         95               247      5          115        54.03       2.84        5
 tunnel bureau LYS-3        17820       2014       11.3        1712         85               120      6          120        20.54       1.44        6

      11 bureau             11650       3227       27.7        2788        86.4              161      5          85         23.70       1.37        4
      18 bureau             43360      14265       32.90      12838         90         998            7          130       166.89       12.97       5
      13 bureau             129124     22559       17.5       15884        70.4              2440    10.8        80        127.07       19.52       6
 tunnel bureau XQLS-2       318175     37167       11.7       31225         84               1858     5          120       374.70       22.30       4
   Road and bridge          42315      10580       25.00       7940         75         420            4          110        87.34       4.62        6
      China coal            15489       5686       36.7        5118         90               350      6.2        120        61.42       4.20        8

       2 bureau             18800       5640        30         4850         86               226      4          100        48.50       2.26        6
 China traffic 1 bureau     24000       8640        36        5876          68               430      5          120        70.51       5.16        4

         total              711163     132498      18.6      107035                          8982                          1198.86      96.92       68
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26. External monitoring institutions are aware of that due to the quality of labor rural
communities along the railway line could not reach the demand of construction
contractors; the initiative of engineering contractors using local workers is to some extent
affected. As Railway construction unit needs coordination with local communities to get
the relation between the local co-operation with the local villages and towns to reach the
railway construction employment priority to local communities in the labor agreement, but
on the one hand local community labor is not suited for these formal specification
management system, some people are even lazy so as to affect the progress of works to
some extent. Zhang Hongzhi(13830915033),vice president of fourth construction
company from China railway 13 bureau ,said: when using workers, local accounts for
about 21%.The reason not widely using local workers is that: First, local employee is not
easy to manage, second, the construction has some types of technical requirements.
Most of the local employee engaged in simple unskilled manual labor like construction of
earth excavation, drain, and forestation, wages around 80-120 yuan / man-day. The
company also hired local women to take care of construction materials and cooking, etc.
wages around 80-120 yuan/man-day.

2.5 PURCHASING LOCAL BUILDING MATERIALS

27. Not only did Lan Yu railway project hire some local labor to do non-technical work to
improve their family income, but also as far as possible buy from the local procurement of
construction materials with the premise of quality assurance to reduce transportation
costs, obtain the local building materials market and increase revenue. External
monitoring and evaluation agencies from the project contractor interviews and information
provided to obtain materials from local procurement of specific data (Table 2-3). These
data reflect the railway construction on the local economy through income growth of the
situation. Local procurement of construction materials cost reached 2.53 billion yuan.
Among them, the procurement pay 260 million yuan to buy the local river sand, and 570
million yuan cement, 250 million yuan stone, steel, 690 million yuan, and other building
materials 750 million yuan; the same time, the construction contractor construction paid
76.55 million yuan personnel living expenses to the local. In materials procurement,
construction materials provided by the poor families reached a total of 89.72 million yuan,
consumer goods construction team of contractors supply to the poor families reaches
about 15.61 million yuan. Railway county / district and sub-provincial cost of building
materials and construction team of local procurement consumption are shown in Table
2-3. Procurement and consumption of these materials effectively promote local industry
and economic development and increase the income of poor families.

2.6 “GREEN CORRIDOR” PROJECT IN PROCESS

28. External monitoring and evaluation institutions learn that: "Green Corridor" plan
advanced together by Lan Yu and various stakeholders is being planned. The plan


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envisages to build within 50m on both sides of green shelter belt planting along the
upcoming Yu-Lan railway. Specific planning and required uniform seedlings of this
program is provided by the Lan Yu belt construction company, three provinces’ Forestry
Department along the railway line are responsible for organizing the planting.
Implementation of the initial budget for this program is about 20 million yuan. At present,
the "Green Corridor" project budget approval is reported to the Ministry of Railways,
Gansu Province has issued letters by the Forestry Department to promote the
implementation. What can be expected is that ,this will be a favorable environment along
the railway business.




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                                   Table 2-3 Situation of Lan Yu railway procuring local construction materials


                                                                                                                             Materials
                                                                                                                                           Service
                    Construction materials procurement(10 thousand yuan)                                                       from
  Project                                                                                                                                from poor
                                                                                              Living service Total(10          poor
department/                                                                                                                               families
                                                                                               expanse(10    thousand        families
Construction                                                                                                                                (10
                River                                                                        thousand yuan) yuan)              (10
  bureau                 Cement       Stone          Steel         Other           Total                                                 thousand
                sand                                                                                                         thousand
                                                                                                                                          yuan)
                                                                                                                              yuan)

21 bureau      1546.00   6048.00    1650.00        7800.00      2438.00       19482.00       715.00               20197.00   848.00      150.00


19 bureau                                                                     19978.92                                       980.00      129.00
               1293.15   5937.98    1296.61        9080.90      2370.28                      689.00               20667.92

16 bureau                                                                                                                    1418.00     260.00
               4391.40   7285.30    1368.40        11026.90     4884.90       28956.90       1285.00              30241.90
China tunnel
               3592.17   5296.44    2720.87        8328.50      3198.20       23136.18       1056.00              24192.18   1064.00     206.00
LYS-3

7 bureau                                                                                                                     1008.00     110.00
               4957.24   5682.00    4156.69        9850.00      1200.00       25845.93       575.00               26420.93
China tunnel
                                                                                                                             232.00      40.00
XQLS2          277.00    2774.00    788.00         2989.00      21.00         6849.00        184.00               7033.00

11 bureau                                                                                                                    502.00      80.00
               1050.00   2710.00    3860.00        4021.00      1708.00       13349.00       482.00               13831.00




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18 bureau                                                                                                           118.00    80.00
                  777.50     160.00     853.50         180.00       1050.00       3021.00     227.00    3248.00

13 bureau                                                                                                           1568.00   122.00
                  2449.71    10794.01   2898.11        4239.90      51595.94      71977.67    610.00    72587.67

Road bridge       3490.00    4293.00    2510.00        5321.00      2698.00                   809.00    19121.00    560.00    170.00
                                                                                  18312.00

China coal        1236.00    5941.00    1358.00        5900.00      2178.00                   506.00    17119.00    465.00    106.00
                                                                                  16613.00

2 bureau                                                                                                2714.00     109.00    38.00
                  612.00     180.00     634.00         100.00       980.00        2506.00     208.00

China traffic 1                                                                                         3105.00     100.00    70.00
                  812.00     205.00     793.00         206.00       780.00        2796.00     309.00

Total                                                                                                               8972      1561
                  26484.17   57306.73   24887.18       69043.20     75102.32      252823.60   7655.00   260478.60




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3. SAFELY MANAGEMENT IN CONSTRUCTION AND HEALTH MAINTNANCE OF
BUILDERS

3.1 SAFELY REGULATION AND OPERATION OF CONSTRUCTIION

29. Overall, the construction contractors pay attention to construction safety management
system and improve and strictly implement the relevant system. Those involved in Lan Yu
railway construction engineering contractors are from China Railway, China coal and
China traffic which have higher management level than other Chinese state-Engineering
& Construction Group, they have strict engineering specifications management system.

30. Lan yu engineering contractor from China Railway 18 bureau introduced that: before
2009, Company implements the Group's quality and safety control system, and in 2009
the Ministry of Railways proposed the "standardized management", and Lan Yu railway
will be as the management system pilot project. The so-called standardized management
is the safety and quality standards, during the period from start to the end of the project,
every part involved in the security, such as construction safety, which include health and
safety, etc. were to form a set of standardized management system. In site construction
management, the company's implementation of the engineering of the system mainly
focus on the security details of the regulation: fine of 100 yuan / person / times if the
construction site without seat belt; workers certificates are needed on site; construction of
special types gain safety training each week, engineering headquarters of the staff gain
training once a month. In addition, posters were put up around the construction site to
enhance awareness of construction workers in the labor protection.

31.Mr Zhao Yukun(13620677135)from Lan yu engineering contractor of China Railway
16 bureau introduced their methods:

1) The first is to establish a safety management system. Each Department of Engineering
Manager are Requested to carry out "horizontal to the side, vertically in the end, control
and effective" principle to enhance security management controls, establish one safety
and quality management organizational structure with safety, quality, environmental
protection, water protection, and 90 full-time management of cadres are configured.
Corresponding development of "Lan Yu railway safety and quality penalties," as the
implementation of security management; while also issued management system "Lan Yu
Railway Engineering Command Construction Safety Management Interim Measures." to
protect the project safety and the safety of construction workers.

2) the construction sector at all levels (headquarters, departments and operations team
manager) to set the security management committee and the safety and quality engineers
and training to carry out security operations, the implementation of the system.



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3) Strengthen supervision and inspection to ensure the results. The command will
manage the tissue of engineering quality and safety and special rectification activities on a
regular basis.

4) To protect the community residents along the railway construction, construction units
are required to make warning mark at the construction site to show the security system
and important tips.

 5) Under safety measures said above, various construction units have a lot of work in this
area to do. Besides, there are special funds and measures to prevent such incidents.

32. Each bureau include 19th bureau pay special attention to the safe production. Every
manage department organized all workers to be aware of pre-job training of” safety will be
known”, and pass the examination. Those engaged in special operations, must be
approved by relevant training and obtained certificate before work, and prohibited those
without training or examination or unqualified person without certificate.

3.2 RIGHTS MAINTAINING OF STAFF

33. Lan Yu railway project focus on the rights of all construction workers involved in
building, these benefits include employment security training, employment contract,
payroll, health protection, social insurance.

34. External monitoring agency learned that Lan Yu Railway Company mention the
concept of building a harmonious. Companies involved in project management to railway
construction management and training of migrant workers, the mobilization of workers’
working enthusiasm and initiative as an important part of building a harmonious railway.
To ensure that no wage arrears for rural workers, Lan Yu railway company institutionally
required railway construction project contractors to establish deposit accounts to pay
wages for migrant workers, according to the number of stored quantities margin. Parts of
the project construction units apply a personal accident insurance for workers.

35. The “service contract" that external monitoring organization report in the second
phase determines the minimum wage of migrant workers and issuing criteria, social
insurance, and other rights, in which the current report will not repeat .

3.3 HEALTH MAINTENANCE

36. Measures taken to protect the workers health by the bodies in the construction along
Lan Yu railway include:

1) Each respective project group use its own health resources (staff hospital) or the


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construction field hospital on a regular basis (usually one year) to organize medical staff to
understand the health status of workers; engineering and construction field hospital
command enter into trust agreements, contact with local medical institutions disposal if
there is emergency.
2) Part of the construction unit site located Hygienists;

3) Establish health files for all construction workers as soon as they are hired.

37. Within the construction project of China Traffic, no cases of infectious diseases
occurred currently, and no cases of AIDS. Engineering Department and the headquarters
of the company contact the resident hospital staff to conduct a comprehensive
examination of the official once a year, including workers, managers, coordinating sector
workers, skilled workers, etc.. Staff canteens, restaurants, waiter, back office personnel
receive medical examinations more frequently.

38. In China railway 18th bureau, Health and disease prevention project is part of quality
control system and incorporated into emergency plans system. Specific practices
including:

1) The company asked the key health-related departments, such as canteen staff posts to
hold the health certificate;

  2) Regularly test: The project department use local health care institutions to give regular
medical care for employee. The Group's health care professionals (usually a few months
time) deliver drugs to railway construction site.

3) According to the high density of workers in site and greater relative concentration of
migrant workers, in order to ensure workers’ health safety, cook who serve the workers
must receive the health certificate, multiple medical care in one year and strict disinfection
of cooking utensils;

  4) Main measures according to Health and Safety of staff are: population and family
planning management, disease control, hepatitis and infectious diseases detection and
prevention, routine annual physical examination, gynecological examination of female
employees. The construction units must focused on workers, especially migrant workers
in the health screening and infectious diseases, sexually transmitted diseases, AIDS
control, prevention of mass food poisoning incidents.

4 PROJECT CONSTRUCTION AND INFLUENCE OF POVERTY

4.1 POVERTY REDUCTION METHOD BY LOCAL GOVERMMENT IN THE AREA OF
PROJECT


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39. Most of the region crossed by Lan Yu railway projects are relatively poor areas in
western China. Poverty alleviation and level raise of benefit by the project is undoubtedly.
Full compensation for land acquisition and resettlement are properly rehoused in addition
to this help effect, but also benefit from poor family labor through access to the railway
construction site employment opportunities, or to provide the required quality building
materials to the railway construction sector, or provide services and other means of living
increase to the railway construction to improve family income. Information from the
discussions and interviews of External monitoring bodies along the local government with
the affected villages showed that trend of changing impact of poverty is positive and
significant.

40. Local government along the county area is implementing a new socialist countryside
campaign, provide unified resettlement to affected people, project affected people living in
the reconstruction obtained infrastructure and other policy support from the local
government settlements. The project overall changes the face of the affected people and
quality living.

41. Lan Yu Railway along the county has made a certain improvement to poverty areas. It
is understood that in such cases along other regions (all to varying degrees, mainly in the
following areas:

1) Over the past year, transportation vehicles and agricultural vehicles transport materials
along the rail to increase the income of farmers;
2) The use of some of the local labor force increased the income of farmers;
  3) Railway construction unit to purchase local consumer goods and woods, especially
vegetables and meat, which increase the income of farmers and boost the local industry;
4) The railway construction units implement the annual festivals (such as the Spring
Festival, etc.) and donate to the local poor villagers to improve conditions for some poor
families;
5) The railway construction unit turned over revenue and increase the county's financial
income, indirectly increasing the ability of the county's poverty.

4.2 INCOME IMPROVEMENT OF POOR FAMILY

42. For the reason of railway construction and relocation compensation, the affected poor
people increase the family income in short-term significantly. Part of the family thus gained
the financial ability to develop income sources other than the agriculture with the help of
local guide, this financial capacity will further increase revenue for poor families. At the
same time, it is clear that among the demolition of existing houses, brick structures, civil
structures, all these old houses have a high proportion, and the majority of new homes



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re-built because of demolition are brick-concrete structure. Many relocatees are pleased
to have this opportunity to improve their living conditions.

43. With capacity and expertise of mechanical construction unit, local rural cadres request
construction unit to help poor families to relocate and reconstruct, engineering units give
great support from transport and settlements formation of new house sites.

44. The report table 2-2, table 2-3 have shown that the project contractor building this
railway project has employed 71.1 million manday, including 13.2 million manday direct
employment along the railway, which is 18.6% of the total amount of labor. The
employment of local poor villagers reaches 10.7 million manday, accounted for 81% of
hired staff. The employment of local women about 1.0 million days, accounting for locally
hired staff, 7.5%; people hired from the local railway construction in the poor village
received 80-120 yuan /day. Poor families participated in railway construction work
receive at least the a total income of 11.989 million yuan, women employed received at
least 969,000 yuan, at least 68 various service institutions was provided to the railway
construction. Local materials procurement of construction comes to a cost of 2.53 billion
yuan. Among them, 260 million yuan of river sand to local government, 570 million yuan of
cement ,250 million yuan of stone, 690 million yuan of steel , and 750 million yuan of other
building materials; at the same time, 76.55 million yuan of living expenses by engineering
contractors construction workers are paid to the local government. In material
procurement, construction materials provided by the poor families are 89.72 million yuan;
consumer goods supplied by the poor families to the construction team are 15.61 million
yuan.

5 PROJECT CONSTRUCTION AND WOMEN DEVELOPMENT

5.1 EVALUATION METHODOLOGY

45. External monitoring and evaluation have been assessing the adherence to this
concept: gender equality, especially if women in the socio-economic activities are the
same as equal treatment with men is a basic principle to assess the study. Site
assessment and investigation team take the way to communicate with the local county,
township and village women's federation to understand the overall changes in the local
women's development; They had informal discussion with the affected families, especially
households headed by women about specific impact Lan Yu Railway do to their
production and life; and from the process of land requisition compensation and
resettlement compensation and resettlement policy from the development and
implementation of the principle to observe the implementation of gender equality.

46. In 2009, Dangchang County Women's Federation work under the principle "double
learning double compare", established bases in urban and rural women's education and


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women's training schools and women's service center to cultivate economic women,
develop science and technology model households t of courtyard economy in female and
make efforts to enable women to master 1-2 new enrichment technology; at the same time,
the county make efforts to do "Earth's Love, Mother Water Cellar" project. In the county
Women's Federation work of poverty reduction and including county, on involved poor
villages related with Lan Y u, through contact of towns and villages with Lan Yu ,it is
agreed that the construction team use railway labor including women workers from the
local village as a priority. Jingbian county women's federation broadly organized women's
technical training, activist training, comprehensive safeguard rights of women and children
under the guidance of the "harmonious family" concept; in 2009, Suide county women's
federation launched a 23 total of 2,000 people skills and technology training, prioritize the
village women affected by the takeover of land of the Lan Yu Railway, and promote mutual
support and assistance to start work. Through training, 300 women labor force are
selected to Shenzhen, Shanghai, some of the women along the Lan Yu was hired to cook
for the local railway construction units or materials manager.

47. Tao Kaiqin from Guangan women's federation said: there are 1.4 million women in
Guangan, which is 46.8% of the total population. Adult female literacy in rural areas is
mainly under junior high school. County, township and village women's bodies are healthy,
women work goes smooth and well. Women's federation’s main work is skills training and
rights, including 4-5 times annual training, such as vegetable growing and aquaculture
training. Railway Construction had some effect on the development of local women, many
women get the knowledge of railway construction in the county through newspapers,
television and notice; Many women's ideas and concepts change, the original sticking to
the same family farming model is now turning into going out to labor, seeding shed ready
food, and women doing business are increasing; according to external monitoring and
evaluation agencies investigation, there has similar circumstances in Ningxia Wu and
Yongning County.

48. Lan Yu railway construction projects are very concerned about women's rights
protection work, women participating directly in engineering enjoy the special treatment
in“ women’s four period" in addition to enjoying equal pay for equal treatment of railroad
employees. Female migrant workers reflect the labor intensity of work is less than
household and there is more income. Although the land requisition and removal bring
some negative impact to groups of women more or less, but with the work of local
government and Lan Yu Company, this impact will be reduced to minimum. And it’s more
important to bring these women new awareness and concepts.

49. External monitoring and evaluation team considered : Lan Yu railway construction
projects promote the development of gender equality issues along the region and it’s
forming positive change. Since the Railway construction, the ideas of women, social
position, family status and other aspects of the emerging trend is good, more women pay


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attention to education through the women's federation‘s guidance and participation in the
market economy and feelings, This includes self-learning culture, learning technology,
including attention to children's education. External monitoring team in the field
investigation found no discrimination against affected women.




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6 CONCLUSIONS AND PROBLEMS

50. Lan Yu railway projects are proceeding and the promised agreement "social
development action plan" is in the process of synchronization. Overall, Lan Yu railway
provide huge employment opportunities to villages during the construction, While it cannot
be summarized that these employment opportunities number achieve the planned number
(as the project is still ongoing), however, it is a direct opportunity for local labor force,
particularly more than 83% of poor households to improve household income. The
construction sector along the railway line provide a large number of funds available to
local communities and poor families through purchasing large quantities of building
materials and consumer goods, not only stimulating local industry, but also improve life
opportunities by providing materials to the local poor families .Lan Yu Railway project
owners and contractors participate in the construction of the project resettlement agencies
and local government departments requisitioned by various measures to ensure that the
affected people and rights of railway construction workers, including their salaries,
construction security, social insurance , health and epidemic prevention, health protection.
Due to a series of preventive measures, there were no major health outbreaks and
infectious diseases including AIDS. Women, minorities and other vulnerable groups
involved in project are treated equally. local government Resettlement departments
cooperated with the local Women's Federation, including poverty alleviation and other
departments ,provide a variety of skills training to the poor, women, affected groups, in the
process of rebuilding lives affected, resettlement departments and engineering institutions
give what they could give to help.

51. Employment in the railway operations and tourism development required in <Social
Development Action Plan> has yet to be continued only after the railway operates;

52. While the general, it is affirmative what Lan Yu railway projects do in the promotion of
socio-economic development and it’s positive role of values but the external monitoring
and evaluation body still concerned that the following worth further attention:

1) Local government's poverty reduction and women Federation and other agencies have
been working hard, but the general sense, these institutions’ attention to vulnerable
groups has not yet fully integrated with poverty alleviation and women's work to promote a
series of work placement with Lan Yu railway. Local government departments should be
placed through the strengthening of horizontal communication to enhance for special
measures to assist vulnerable groups to improve placement results;

2) As the social security policy has not yet implemented to those affected people in railway
land acquisition and resettlement, the affected people’s Sustainable living faces follow-up
risk after they are resettled.



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3) In some construction units ,some short-term temporary employment and local
employment were not available to get medical examination , including sexually transmitted
diseases and AIDS, which affected preventive effect of the monitoring of major infectious
diseases;

4) Land reclamation including borrow pit and quarry are still in progress provisional, which
needs intensified monitoring.

53. The next Social Development Plan monitoring points of External monitoring
assessment institutions:

1) Focus on the construction of the local community's environmental impact, such as
noise and environmental protection, rehabilitation of infrastructure;

2) Income restoration of affected persons;

3) relations between project operation preparation work with local affected human, such
as station design, future management planning processes linked to local affected people;

4) Pay continued attention to local railway’s macro economics.

54. Next Monitoring report time of "Social Development Action Plan>: October, 2010




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7 Annex: Social Development Action Plan of LAN YU Railway Project

                                                                 Table   Social Development Action Plan
              Proposed Actions                            Targets             Agencies Involved            Timing   Funding Source                 Monitoring Indicators
A. Job creation during construction            60% of unskilled labor force MOR, contractors,              2008–2   Labor      costs         are   No. of local labor employed by
• Use of local unskilled labor including       hired locally (71,400 12-month poverty reduction            012      included    in     Projevct    gender
  those from poverty villages in remote        jobs), including women         offices, All-China                    costs                          No.   of     workers   from   poverty
  areas especially the poor, women,        More than 50% of unskilled Women’s Federation                            Recruitment            and     households
  ethnic minorities, and vulnerable groups labor from poverty households (ACWF), and labor                          training   from       local    No. of local sellers provisioning the
• Priority given by local governments to       Labor recruited   from at least bureaus                              government budgets             work camps by gender
  local sellers in providing services, food    20 remote poor villages                                                                             Contract clause
  and supplies at service areas and
  construction camps
B.      Use    of   local   materials      for All materials locally available MOR,      contractors,      2008–20 Included in contractor’s Amount and source of supplies from
construction                                   sourced locally                and                  local   12       budget for civil works         local area
• Purchase of local construction materials 22,000 person-years sourced governments                                                                 No. of local workers and from poor
  meeting necessary quality standards      locally in the provision of                                                                             households Restoration of lands
• Use of workers from poverty                  construction supplies                                                                               used temporarily
     households for sourcing materials         11,000 person-years or more                                                                         Contract clause
     especially women                      than 50% of workers sourced
• Borrow pits and quarries are returned to from poverty households
  their natural state or developed as fish
     ponds or other beneficial land use




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           Proposed Actions                              Targets                   Agencies Involved       Timing   Funding Source                 Monitoring Indicators
C. Jobs during operation of railway         poverty households; >25% are MOR,                   Project    2013     Railway      Company       for No. of workers hired and trained in
• Hiring and training of the poor, women,   women                                  Company,     poverty    onward   workers                        total, by gender, ethnicity and poor
  and other vulnerable people               650    workers      trained     and reduction       offices,            ACWF         for    business No. of workers trained in total, by
• Design of station areas to allow for      employed in railway operations, ACWF, and other local                   start-ups,           poverty gender and poor
  handicraft shops, gift shops,             160 women hired and trained,           government agencies              aspects                        No. of women-owned businesses
  restaurants, etc.                         40      women-owned            small                                                                   started
• Local businesses meeting passengers’      business,
  needs                                     50 local businesses started
• Local governments design commercial
  areas adjoining stations for local
  businesses
D. Control of HIV/AIDS/STIs and human All workers understand dangers MOR, contractors,                     2008–20 Project, contractors and No. of health workers
trafficking                                 of HIV/STI & human trafficking         county        health    12       local health and security Incidence of HIV/AIDS
• Health testing, counseling, and referrals Testing and medical referral departments, and civil                     bureaus                        No. of posters/pamphlets
  in construction camps; availability of    service available to workers and affairs bureaus                                                       Media programs on TV and radio
  condoms                                   local residents                                                                                        stations
• Awareness and prevention on                                                                                                                      Number of tested people
  HIV/AIDS/STIs and human trafficking
  campaigns
E. Income recovery for resettlement All APs, with special measures MOR,                           local    2008–20 Project        and        local Income level of APs, by ethnicity
affected persons (APs)                      for vulnerable people, women, government                       11       government         (as    per No. of people trained and new jobs,
• Identification of vulnerable people       the   poor    and   Tujia     (1,000 resettlement   offices,            Resettlement             Plan by gender and ethnicity
• Income restoration measures               household with land loss; 200 and                   village             budget                         Grievances and redressal
• Readjustment of land                      households to be relocated; and committees


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              Proposed Actions                              Targets              Agencies Involved        Timing   Funding Source           Monitoring Indicators
• Training and special assistance               one seriously affected village




G. Village development                          Poverty villages and villages    EA,   provincial   and   2008–o   Local governments with   Number of villages provided with
• Provision of basic infrastructure and         without access to road, safe     county governments.      nward    assistance       from    road access, safe drinking water,
     social services in poverty villages along drinking water, telephone                                           contractors              and telephones
     the railway alignment
F. Construction safety                          All contractors and construction MOR, contractors         2008     Project budget           Signed contracts
• Ensure safety guidelines developed            workers                                                   onward                            No. of workers injured
     and incorporated into contracts with all                                                                                               No. of accidents
     contractors                                                                                                                            No. of inspections
• Periodic inspections by MOR
H.       Protect      communities        from All communities in the project MOR and contractors          2008–20 Project budget            Working hours
construction            and        operation area (84 villages)                                           12                                Under- and overpasses
disturbances and damages                                                                                                                    Irrigation and drainage canals and
• Prohibit nighttime construction and                                                                                                       roads repaired
     adherence to noise standards                                                                                                           Housing damages
• Building of over/underpasses where                                                                                                        Grievances and redressal
     needed
• Reconstruction of damaged irrigation
     and drainage systems and local roads
• Avoid or mitigate damage to housing



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               Proposed Actions                            Targets                 Agencies Involved        Timing   Funding Source             Monitoring Indicators
     caused by blasting
I.      Sustainability      of    maintaining Workers           from       poverty Local     government     2008     Local       governments No. of workers counseled by gender
 households out of poverty                   households remain above the agencies             concerned     onward   (using portion of civil and ethnicity
• Provide assistance in reducing poverty     poverty line after construction with poverty reduction                  works tax revenue)        Training offered
     factors                                 period                                                                                            No. of poor workers assisted to start
• Provide counseling on preparing for                                                                                                          a business
     transition
• Provide training for further employment
• Assist in preparing a business plan for
     starting a business once the
     construction work is done
           J. Tourism development            New tourist-based businesses          MOR,      contractors,   2008     Tour companies, railway, No. of tourists in area
• Link local communities with tour           Cultural and village tours led by tourism          bureaus,    onward   local businesses, local Increase in number of tourist facilities
     operators and companies to develop      two poverty villages                  poverty     reduction             governments               and revenue
     historical cultural package tours       Tourism-related           employment, offices, and women’s                                        No. of the poor, ethnic minorities,
• Develop local handicrafts for sale by      especially for the poor, women, federations                                                       and other vulnerable people that
     women and poor households at stations vulnerable people, and ethnic                                                                       participated in tourism services and
     and tourist sites                       minorities:                                                                                       handicrafts, by gender
• Provide start-up funding for restaurants   - Poverty villages                                                                                No. of persons trained by gender
     and guesthouses near scenic and         - Tujia villages
     historical sites                        Employment for women
• Develop posters on environmental and       Training, of which 50% are
     cultural relics protection              women
• Promote tourism in the region


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           Proposed Actions                 Targets             Agencies Involved     Timing   Funding Source   Monitoring Indicators
• Involve local poor, women, and
  vulnerable through provision of tourism
  skills training




 Source: Consultant.




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