Identifier | Created | Classification | Origin |
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09CHENGDU218 | 2009-10-07 09:24:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Consulate Chengdu |
1. (SBU) Summary: Despite official Sichuan Province statistics claiming 97 percent of rural home rebuilding following last year's earthquake has been completed, a trip to the area in mid-September revealed a significant proportion of rural residents remain in temporary housing. Banners proclaiming the province's September 30, 2009 deadline for rural home reconstruction were a common site, but local residents reported that the need to be officially registered as a local household and the high costs of rebuilding remain barriers to progress. More positively, reconstruction continues apace and we did observe a significant reduction in the number of temporary shelter complexes compared with previous trips. Possibly reflecting greater skepticism than provincial statisticians, however, Premier Wen Jiabao, during a visit to Sichuan quake areas in late September, commented that the Province "must still overcome challenges before it can be judged a complete success." End Summary. 2. (SBU) Consul General and PolEconOff traveled on September 10 to rural areas in Sichuan hit by the May 2008 earthquake, including the towns of Hongyan and Zundao, both lying within about two hours drive north from downtown Chengdu. In Hongyan, CG participated in the opening ceremony of a livelihood project implemented by Heifer International's China office in cooperation with the Pengzhou Bureau of Animal Husbandry. During the unofficial visit to Zundao, we completed a walking tour of the town, speaking to local residents about their experience with the reconstruction process and the challenges they are facing. (Note: Travel in the quake area, once off of the few multi-lane highways that reach the main cities, remains difficult and often unpredictable, with road and bridge reconstruction projects often blocking routes, necessitating travel along unpaved and narrow roads between county-level towns. End Note.) Progress, but Many Still Waiting for Housing -------------------------- 3. (SBU) Traveling along the increasingly rough and unpaved roads to Hongyan, we noted a reduced number of temporary housing complexes in comparison to our visit several months ago (ref A). However, many of the fields of white-walled, blue-roofed prefabricated shacks remain, some now topped with new satellite dishes. Large red banners exhorting disaster area residents to "enthusiastically" work to meet the province's September 30 deadline for completion of rural home reconstruction were a common site, hanging across roadways and on construction sites. (Note: In early May, Sichuan officials announced that all rural residents must move into permanent housing by the end of September. End Note.) 4. (SBU) In Hongyan, residents living in temporary structures built from materials recycled from their destroyed homes, estimated that they still had months to go before they would be moving into permanent housing. When asked about the apartment complex still under construction nearby, into which many of them expect to move, locals noted that while the outer shell could be done within weeks, the internal construction will likely not be completed until early 2010. No Hukou, No Rebuilding Subsidies -------------------------- 5. (SBU) In Zundao, where the quake destroyed about 90 percent of the buildings, construction of a number of new private homes and public buildings -- such as the new middle school and kindergarten -- had been completed since our last visit in April. However, the town still appeared to be a large construction site, with the majority of residences in some state of reconstruction or repair. Several residents readily recounted the challenges they still face in the recovery process. Within minutes after we entered the town on foot, two older residents had separately approached us to complain that they were unable to rebuild -- they do not have local household registrations (hukous), they said, so local officials denied them the reconstruction subsidies available to their neighbors. Rebuilt Home Brings Heavy Debt Burden -------------------------- 6. (SBU) A Zundao couple, who recently completed the construction of a new two-story family home, invited us into their home and recounted to CG the struggles they underwent in financing the rebuilding. Between themselves and the wife's parents, they were able to obtain 32,000 RMB (USD 4,700). However, they said, rebuilding costs totaled 120,000 RMB (USD CHENGDU 00000218 002.2 OF 002 17,650) -- a figure consistent with what we have heard from many other residents in that area. They filled the gap by drawing down the savings they had amassed over the years -- 20,000 RMB (USD 2,940) -- along with a small bank loan and a larger loan from family members. They noted that the loans are a "great burden" and they do not know how they will repay them, but said that they had decided that they must nevertheless rebuild their home, otherwise they would have no life. In their 50s, the couple said they now earn several hundred RMB a month from a flower pot business run out of their home. Neither have pensions coming -- the husband noted that he had been laid off from his factory job in Mianyang (a nearby city) over a decade ago, receiving only a one-time payout and losing his retirement security in the process. Official Statistics versus Rural Reality -------------------------- 7. (SBU) Comment: Infrastructure and housing reconstruction progress in the quake-affected areas is evident, having shifted into high gear early in 2009 (ref A). However, official provincial statistics announcing that 97 percent of rural homebuilding has been completed to date do not appear to be borne out by reality on the ground. More remote areas, further afield than Hongyan and Zundao and comprising a large portion of the quake impact area, are reportedly facing even greater rebuilding challenges. Premier Wen Jiabao paid his eighth visit to the quake zone in late September, and commented that the effort "must still overcome challenges before it can be judged a complete success," -- perhaps also expressing greater skepticism than provincial statisticians. BROWN |