Six authorities, including the National Development and Reform Commission ("NDRC"), have recently released the Guiding Opinions on Working Effectively on the Sharing of Benefits of Hydropower Development (the "Opinions") which have entered into force immediately from the date of issuance and will be valid for five years.
The Opinions call for efforts to: 1. improve the compensation and subsidy policy for the relocated people; 2. show respect to local folk convention and custom and religious culture; 3. make towns and villages receiving the relocated people more livable; 4. innovate in the systems and mechanisms regarding the construction of projects within the water reservoir regions; 5. expand ways for the resettled people to gain returns from their property; 6. advance the industrial development and upgrading within the water reservoir regions; 7. better build the capacity and promote employment; and 8. accelerate the practical implementation of supporting policies for the energy sector in the water reservoir regions. Further, the Opinions explicitly state that incentive plans shall be prepared differently to suit local conditions, and households to be relocated are encouraged to move away as soon as possible, and when necessary, additional subsidies may be provided to incentivize such households. Meanwhile, it is highlighted that the compensation and subsidy funds set aside for the relocated people whose land is expropriated shall be used reasonably, and regions where conditions permit are advised to grant land, as their first choice, to the resettled households to safeguard their lawful rights and interests on land. Furthermore, the resettlement planning and the future industrial planning shall be considered as a whole and effectively linked to the production, development and industrial upgrading in the water reservoir regions, with a view to promoting the employment of the resettled households and continually increasing the income they will earn.