In 1994, construction began on the Three Gorges Dam water conservancy project. By 2007, a total of 129.64 million people had been relocated from areas that were to be flooded or were considered dangerous. However, only a budget of 52.9 billion yuan was allocated for resettlement. A rough calculation shows that this only averages out to 40,805 yuan per person.
In 2007, the average per capita net income of farmers was 4,140 yuan. Relocation costs almost ten times their annual income might not have been so bad.
Specifically, relocation costs were divided into land compensation, housing compensation, resettlement compensation, and other compensations. Land compensation was six to ten times the average annual output of the three years prior to expropriation (from the “Land Administration Law of the People’s Republic of China”). However, no information could be found from those involved or public documents regarding the exact amount of this money.
Housing compensation was around 200 yuan/m², with differences between rural and urban housing. Considering that the average per capita residential area in cities was 15 square meters, compensation could exceed 3,000 yuan.
According to the Guangdong resettlement plan for Three Gorges immigrants, the price of immigrant housing was 480 yuan/m², but immigrants only paid 250 yuan/m². A personal housing construction payment of 5,000 yuan per person was also provided (essentially free housing). Then there was a production resettlement fee of 10,449 yuan/person, an infrastructure fee of 5,020 yuan/person, land acquisition of 10,000 yuan/person, a housing construction subsidy of 4,600 yuan/person, and other subsidies of 1,148 yuan/person.
In total, this amounted to housing and 31,217 yuan in subsidies. This was provided by the relocation destination. The relocation origin area (the area affected by the Three Gorges Dam) also had to pay some compensation for housing and ancillary facilities.
However, these subsidies were only available to those relocating to a different location. Subsidies for those relocating within the same region were possibly roughly halved. The differences in language and climate were smaller. However, some immigrants returned to their hometowns due to environmental differences and other reasons.
There were also likely cases of embezzlement, resulting in some relocated individuals receiving only 5,000 yuan in subsidies and no housing… and land compensation of only 2,701 yuan per mu, 3.5 times the average annual output, far below the regulations of the “Land Administration Law”.
Postscript: After seeing news reports about how some residents did not receive compensation for their villages being flooded by the reservoir, I wanted to research the resettlement costs of the Three Gorges Dam.