Short Resettlment Plan Plus Due Diligence for Zhuolu County New Area Water Supply and Old Town Pipe Network Restoration Works

Hebei Small Cities and Towns Development Demonstration Sector Project Asian Development Bank (ADB)

Zhuolu County New Area Water Supply and Old Town Pipe Network Restoration Works

Short Resettlement Plan including Due Diligence

Zhuolu Water Supply Company May, 2011

Resettlement Plan Endorsement Letter

Zhuolu Water Supply Company received the approval from relevant administrative department to construct the water supply plant project. The project is planned to start from September 2011 and to be finished in May of 2012 Via the Ministry of Finance, Zhuolu Water Supply Company received a loan from Asian Development Bank to cover partly cost of the project construction. The project implementation must comply with the ADB social safeguard policies, fof which this Resettlement Plan is a critical requirement of ADB. The RP will be the policy reference for land acquisition. In accordance with the Chinese laws and regulation, the Resettlement Plan should contain the contents of some comprehensive measures and the monitoring arrangement so as to enhance the efficiency of resettlement process. Zhuolu Water Supply Company is to confirm the contents of Resettlement Plan prepared in May of 2011, and ensure the required funds for resettlement process. The Resettlement Plan was thoroughly discussed and gained the confirmation by local government.

Signed ：：： Date: 2011

Table of Contents

RESETTLEMENT PLAN ENDORSEMENT LETTER ...... 444

EXECUTIVE SUMMARY ...... III

1 PROJECT INTRODUCTION ...... 111

1.1 PROJECT BACKGROUND ...... 1 1.2 IMPACT OF LAND ACQUISITION AND LAND OCCUPATION BY THE PROJECT ...... 4 1.3 PROJECT INVESTMENT ESTIMATION AND PROGRESS SCHEDULE FOR IMPLEMENTATION ... 4 1.4 MEASURES TO REDUCE IMPACT BY THE PROJECT ...... 5 1.4.1 Project Planning and Design Stage ...... 5 1.4.2 Project Construction Period ...... 5 1.4.3 Action Plan for Land Acquisition and Resettlement for the Project and Its Implementation ...... 7

2 PROJECT IMPACT ...... 888

2.1 PERMANENT LAND ACQUISITION IMPACTS AND AFFECTED POPULATION ...... 8 2.2 TEMPORARY LAND OCCUPATION ...... 10 2.3 OTHER INDICES IN KIND ...... 11

3 SOCIAL AND ECONOMIC PROFILE OF THE PROJECT AREA ...... 121212

3.1 GENERAL INFORMATION ON ZHUOLU COUNTY ...... 12 3.2 GENERAL INFORMATION ON ZHUOLU TOWN ...... 13 3.3 IMPACT IN THE PROJECT AREA ...... 14 3.3.1 Affected Population ...... 14 3.3.2 Basic Economic Information of the Affected People ...... 14 3.4 THE VULNERABLE GROUPS ...... 19 3.5 IMPACT ON WOMEN BY THE PROJECT ...... 19

4 LEGAL FRAMEWORK AND RESETTLEMENT POLICIES ...... 202020

4.1 LAWS , REGULATIONS AND POLICIES FOR RESETTLEMENT ...... 20 4.1.1 ADB Policies on Involuntary Resettlement ...... 21 4.1.2 China’s Laws, Regulations and Relevant Articles ...... 23 4.1.3 GAps between ADB and China Policies ...... Error! Bookmark not defined. 4.1.4 Compensation Principles for the Project ...... 29 4.1.5 Compensation Eligibility Cut-off Date ...... 30 4.2 COMPENSATION STANDARD ...... 30 4.2.1 Principles for Determination of Compensation Standard ...... 30 4.2.2 Compensation Standard ...... 30 4.3 OTHER COMPENSATION STANDARD ...... 33 4.4 FLOW OF RESETTLEMENT FUNDS ...... 34 4.5 COMPENSATION ENTITLEMENT MATRIX ...... 35

5 RESETTLEMENT BUDGET AND FINANCING ...... 373737

5.1 RESETTLEMENT FEES ...... 37 5.2 FINANCING AND ALLOCATION PLAN FOR RESETTLEMENT FUNDS ...... 38 5.3 RESETTLEMENT FUND MANAGEMENT ...... 39

6 RESETTLEMENT AND RESTORATION PLAN ...... 404040

6.1 LIVELIHOOD RESTORATION PLAN ...... 40 6.1.1 Resettling Scheme for the Affected Units ...... 40 6.1.2 Livelihood Restoration for the Affected Households ...... 40 6.2 PRODUCTION RESTORATION PLAN FOR THE PEOPLE AFFECTED BY TEMPORARY LAND OCCUPATION ...... 42 6.3 TRAINING ...... 42 6.4 VULNERABLE GROUPS AND WOMEN RIGHTS ...... 42

7 INSTITUTIONAL FRAMEWORK ...... 434343

7.1 INSTITUTIONAL FRAMEWORK ...... 43 7.2 STAFFING OF THE INSTITUTIONS ...... 43 7.3 RESPONSIBILITY AND CONTACT INFO OF THE RESETTLEMENT AGENCIES ...... 44 7.4 TRAINING PLAN ...... 45 7.5 MEASURES TO DEVELOP THE RESETTLEMENT INSTITUTIONS ..... ERROR ! BOOKMARK NOT DEFINED .

8 PUBLIC PARTICIPATION, CONSULTATION AND GRIEVANCE ...... 464646

8.1 PUBLIC PARTICIPATION ...... 46

8.2 GRIEVANCE CHANNEL ...... 47

9. MONITORING AND EVALUATION ...... 494949

9.1 INTERNAL MONITORING ...... 49 9.1.1 Monitoring Components ...... 49 9.1.2 Internal Monitoring Report ...... 50 9.2 EXTERNAL MONITORING ...... 50 9.2.1 Monitoring Procedure and Components ...... 50 9.2.2 External Monitoring Report ...... 51

ANNEX I. TOR FOR EXTERNAL MONITORING & EVALUATION ...... 525252

ANNEX II RESETTLEMENT INFORMATION BOOKLET ERROR! BOOKMARK NOT DEFINED.

ANNEX III HEBEI PROVINCIAL GOVERNMENT NOTICE ON DEFINING THE LAND

PRICE FOR THE ACQUIRED LAND ...... 565656

ANNEX IV RESETTLEMENT EXTERNAL M&E FOR HEBEI SMALL CITIES AND

TOWNS DEVELOPMENT DEMONSTRATION SECTOR PROJECT ZHUOLU

SUBPROJECT ...... ERROR! BOOKMARK NOT DEFINED.

ANNEX V PICTURES RELATED TO RESETTLEMENT ...... 575757

Executive Summary

Zhuolu County ADB Loaned Project is one of the subprojects of Hebei Small Cities and Towns Development Demonstration Sector Project with ADB Loan approved in 2009. The project is comprised mainly of the water source project, water treatment plant project, water distribution pipeline network project, automatic control system project and power supply and distribution project. The project involves a permanent land acquisition of 23.7mu (note: 1 mu equals to 666.67m 2), of which 20mu is of state-owned land and 3.7mu is of rural collective land. The occupation of the state-owned land will cause minor impact on Pishan Canal Irrigation District Administrative Commission which currently has a total of 51 employees, including cadres, staff members and retirees. The occupation of the collective land will cause some impact on 9 households with a total of 30 people from Jijiasi Village, Zhuolu Town. The water transmission pipelines will be built along the existing rural roads and improvement on the pipeline networks will all be done along the urban roads. Only the traffic will be affected during the construction and no temporary occupation of land is involved. There is no house demolition involved in this project. To avoid or reduce the negative impact caused by land acquisition, parties concerned have already made negotiations with the local government and affected villages on such subject as project location, etc. at the feasibility study stage. The principles for compensation and resettlement of the people who are affected by the land acquisition are based on the policies of ADB and the laws and rules of the People’s Republic of China. The resettlement principles are as follows: (1) Avoid involuntary resettlement as far as possible if workable. (2)The compensation and the rights for the affected people can at least help them maintain the normal living standard under the condition of “no project” or under a better condition if possible. (3) Affected

I people, whether with or without legal rights, will be entitled to resettlement compensation and aid. (4)For those who cannot maintain a living with the remaining land after their land is acquired, compensation for the acquired land will be made in cash or by recovery in kind such as replacement of land, as well as by other money-earning activities. (5) The affected people shall fully understand the qualification, way and standard of compensation, plan for restoration of their living and income, time arrangement of the project and shall participate in the implementation of the resettlement plan. (6) No acquisition of land is to be carried out before the affected people are satisfied with the resettlement plan. (7) The executing agency and the independent /third party will monitor the compensation and the resettlement operation. (8) The vulnerable groups will get the special aid or treatment to guarantee a better life for them. All the affected people should have a chance to benefit from the project. (9) The resettlement plan should be made in association with the master plan of the local area. (10) The fund for resettlement must be good enough to fully cover all the affected fields and such fund is included in the total cost of the project. For the land that is permanently acquired, compensation will e paid for the acquired land and green crops. The land compensation standard for the general plot of the collective dry land is 28,300yuan/mu and the standard for the waste land is fixed at 60% of the general plot at 16,980yuan/mu. For the compensation for the state-owned land, the standard is 25,000 Yuan per mu, which includes the compensation for the green crops, which was fixed after negotiation with Pishan Canal Irrigation District Administrative Commission. Because Jijiasi Village is close to the county seat, the price for the collective land is higher than that for the general land plot. After negotiation with the village committee, the standard is set at 38,000yuan/mu for the compensation. The compensation for the green crops on the collective land was negotiated with individual farmers based on actual situation. The total compensation paid was at 44,400yuan; payments were made in April 2011 but the formal approval of land and transfer of land are still pending. Measures for the restoration of income for the resettled people from the acquired land include compensation in cash, technical

II training and priority in labor employment by the project, etc. It is decided through negotiation that the compensation for Pishan Canal Irrigation District Administrative Commission will all be used for the pension insurance premium for the cadres and workers of the commission. For the collective land in the rural area, all of the green crops compensation and 31% of the land compensation will be paid directly to the farmers and the rest will be paid to the collective village; this has been their traditional practice for previous land acquisition, so villagers request to maintain this practice. Since the land loss does not cause a serious income impact, the affected households are using the money seeing doctors, and providing for the aged, etc. All APs accepted the distribution ratio and have signed an agreement (see figure 15 and figure16). The village will use the compensation fund for development of collective economy and public utilities. Through various methods such as meetings, interviews, group discussions by villagers, public participation in the meetings and community negotiations, etc, all the affected people have been informed of the content of the resettlement plan. By way of the above methods, the people to be resettled are involved in the project and full consideration was given to their opinions in the resettlement plan. The resettlement information booklet and the resettlement plan was distributed to the villagers and affected people in June 2011 and the English and Chinese version of the resettlement plan will be published on ADB website in July 2011. The channel for appeal is already established and all organizations will listen to the complaints or appeals from the affected people free of charge. Zhuolu County Water Supply Company is the implementing agency of the project and is in charge of the implementation of the resettlement plan of the project, in conjunction with the county/township land bureau. To ensure the success of the resettlement plan, the company, in addition to the internal monitoring, will entrust an independent monitoring institution to perform external monitoring once every six months during the implementation of the resettlement plan 2010, and submit monitoring reports to ADB and PMO. After the implementation of the resettlement plan, it is necessary to submit to ADB an annual assessment report once a year for a period of two years. The monitoring and evaluation fee is included in the cost estimation of the resettlement.

III

Figure 1 Project Area Map

Qingningbao village

Jijiasi village

Water Plant

1 Project Introduction

1.1 Project Background

With the sustainable economic development and the increasing clustering of people in Zhuolu County, the demand for water in quality and quantity in the county seat is increasing and the requirement is more and more strict. Presently the water supply system in Zhuolu County is jointly managed by Zhuolu County Water Supply Company and the Bureau of Water Resources of Zhuolu County by district. Besides, most of the companies and public institutions in the county seat have their own standby water wells for water supply. As the water supply system is sparsely arranged, the supply capacity of Zhuolu County Water Supply Company is only 5000m 3/day, the rest will be covered by standby water wells. On the one hand, the overall volume of water supply at the county seat is insufficient. On the other hand, some units or institutions have surplus water sources. Therefore, it is hard to guarantee the supply volume to the residents, the water pressure of supply and the water quality. Thus, it is of utmost urgency to have new sources of water supply, to orderly and properly tap the underground water and build new water works. The project scope covers the reconstruction of water works and its water distribution network, namely, ①water source and transmission project, ②water treatment plant, ③water distribution piping networks project, ④automatic control system, and ⑤power supply and distribution system. Water source and transmission project: It is planned to build a potable water source project in Jijiasi Village located northwest of the county seat. It is planned to drill 8 wells for water sources at Jijiasi Village with capacity of 20,000m 3/day. All the intake water wells will be built at the same time. The well group is connected with the piping system arranged in accordance with the requirements of safety for water supply. Through hydraulic calculation, it is required to lay a total of two kilometers of water transmission pipeline （DN200-DN400 ） for the project.

Water treatment plant project: The water treatment plant of this project 1 is located at the vacant land within the Pishan Canal Irrigation District of Zhuolu County, adjacent to Qingningbao Village. It is comprised of one water distribution works with a capacity of 20,000m 3, two water treatment tanks of a capacity of 2000m 3 each, one step pumping station and one chlorination room. Water distribution piping networks project: The existing water distribution piping networks is improperly arranged and parts of the piping system are out of repair for years. Therefore it is necessary to have them reconstructed. Meanwhile it is also necessary to newly build the piping system in the newly developing district. The project will be implemented with consideration given to the near-term and long-term plans of the district within the year 2020 as the target and within the construction scope of the urban planning. PVC-M pipes are used for near-term construction. Among them the total length of newly built pipeline for the new urban district is about 18.32 km (with pipe of DN160-DN500). The total length of newly built or reconstruction supply pipeline for the old urban district is about 47.67 km (with pipe of DN160-DN500). (For the new location of the water treatment plant, please refer to Figure 2 and related pictures in Attachment 5).

Figure 2 Sketch Map of Water Treatment Plant for the New Area of Zhuolu County (Photos of Land to be Used are shown in Attachment 5)

1.2 Impact of Land Acquisition and Land Occupation by the

Project

The permanently acquired land for the project is 23.7mu, of which 3.7mu is of land contracted by individual households in Jijiasi Village and 20mu is of state-owned wasted land of Pishan Canal Irrigation District Administrative Commission. The acquired land from Jijiasi Village is small pieces of land, totaling eight pieces for eight intake wells. This impact involves nine households, and the average loss of farmland is 0.48mu, or 10% of the farmland.. For the water treatment plant project, 20mu of waste land is acquired from Pishan Canal Irrigation District Administrative Commission. Such acquisition does not affect the normal income of the commission and the staff of the commission, which is made up of a staff of 51 members. The reconstructed pipelines are all laid along the urban and rural roads which will cause impact on the traffic but no temporary land occupation is involved. No resettlement is necessary for this project; nor is there any temporary impact on businesses or residents during construction.

1.3 Project Investment Estimation and Progress Schedule for

Implementation

The total investment for the project is 43.256 million yuan. The amount of loan from ADB is 4 million US dollars which equals to RMB 27.308 millionYuan. The rest will be financed by the government of Zhuolu County. According to the resettlement schedule, after the resettlement plan is approved, the water source project will be kicked off in September,2011. Compensation for land acquisition for the water source wells and the water treatment plant project was thus completed in advance in May 2012, so as to restore the living condition of the affected people accordingly. Zhuolu Water Supply Company is now in the process to seek land approval from County Land Administrative Bureau. Construction will commence by September 2011 and is planned to be completed by May 2012. The township water distribution networks project will be constructed and 4 completed between May 2012 and December 2012.

1.4 Measures to Reduce Impact by the Project

1.4.1 Project Planning and Design Stage

At the project planning and design stage, the following measures have been taken by the design institute and the project owner to reduce the impact caused by the project construction on the local social economy. At the planning stage, it was originally planned to build the water treatment plant on the waste land at the place south of Qingningbao Village. To avoid the excessive occupation of land and demolition of houses. It is changed to the land of Pishan Canal Irrigation District Administrative Commission of Zhuolu County now. The location of water source is also changed to the collective land south of Jijiasi Village of Zhuolu Town. Meanwhile the number of wells for water source is reduced from 22 to 8. The water source is located at a place 2000m north of the water treatment plant, which is mostly of waste land. Through the reasonable choice of locations of the sites for the water treatment plant and intake wells, we have reduced the area of land acquisition from 60mu in the initial plan in 2008 to 23.7mu in the present plan. Thus, the number of households and people affected by the project is also greatly reduced. In addition, reasonable analysis has been made on the orientation of the water transmission pipeline. The pipeline is arranged along the farming paths to reduce the impact on the local society and the economy.

1.4.2 Project Construction Period

To ease the impact on urban traffic, the laying of piping network is carried out in the center of the road or on one side of the road. Thus road excavation will have minor impacts on the traffic in the district. The project developer has given full consideration to this factor when drafting the construction plan. Temporary path is designed for road sections with heavy traffic and traffic police are arranged to guide the traffic flow and keep traffic in normal order. As far as construction method is concerned, construction is carried out section by

5 section. Work on excavation, pipe arrangement and backfilling shall be completed in the soonest time possible. In the sections with heavy traffic, construction should avoid rush hours (for instance, construction may be carried out at night so as to ensure free flow of traffic during the daytime). Measures to Reduce Flying Dust During the construction of the project, the earth excavated from the ditch or canal is piled up by the road sides. During the dry season flying dust is caused by the wind and by construction machinery. During sunny and windy days of construction, water is sprayed over the surface of the abandoned earth so as to suppress the flying dust. The contractor will take measures as required to remove the abandoned earth as soon as possible and prevent the earth from falling out of vehicles on the way during the transportation. Before the vehicles go out of the site, the wheels of the vehicles must be flushed with high-pressure water to avoid polluting the environment with earth on the way. Meanwhile sanitation cleaning system is adopted in front of the gate of the contractor. Abandoned earth is cleaned immediately once found. Measures to Control Construction Noise Noises are caused by ditch excavation for piping networks, horns of the transportation vehicles, roaring of motors and concrete mixers, and thundering of rolling compactors for compaction of backfilled earth, etc. In order to reduce impact on the surrounding residents by the project construction, it is forbidden to carry out work at night between the hours of 11:00 P.M. and 6:00 A.M. within a distance of 200m away from the residential quarters. At the same time the contractor should give priority to machinery with low noise when choosing construction machinery and construction method. For work that is inevitable at night but will cause noise impact on the surrounding residents, noise-reduction measures must be taken for construction machinery. Meanwhile temporary installation such as sound barriers shall be established around the work site or around the places with intensive population of residents so as to guarantee the quality of sound environment of the residential areas. Disposal of Wastes from Construction Site The project developer and the contractor should approach the local sanitation department for prompt disposal of domestic wastes from the work site so as to guarantee that the construction site is clean and neat. 6

1.4.3 Action Plan for Land Acquisition and Resettlement for the Project and Its Implementation

When acquisition of land is inevitable, the following measures are taken to reduce the impact on the local people by the project construction: Intensify efforts to collect basic information, make further analysis on the status quo of the local social economy and the future development, and make practical and workable resettlement plan in conjunction with local reality so as to guarantee that the affected people will not suffer from any loss caused by the project construction. Actively encourage public participation and accept supervision by the masses. Intensify efforts for internal and external monitoring and establish highly efficient and smooth feedback system and channel. Cut the cycle of information processing as short as possible to ensure that various problems arising in the course of project construction are promptly solved.

2 Project Impact

2.1 Permanent Land Acquisition Impacts and Affected

Population

The permanently acquired land is comprised of one piece of land of 20mu for the water treatment plant and eight pieces of land of 3.7mu for the water source. The project includes one newly built water treatment plant with a capacity of 20,000m 3/d located at the waste land of Pishan Canal Irrigation District Administrative Commission, taking up a land area of 20mu with a total construction area of 1124m 2 （ See Table 2.1 ）. The Administrative Commission earns the water fee income by providing agriculture water. The wasteland that is acquired does not affect the normal operation of the Commission and they still possess 80 mu of land. The eight wells for the water source occupy a total of 3.7mu of farming land, with an average loss of 0.48mu （See Table 2.2 ）for each household. Nine households are affected; the average degree of farmland loss is 10% and the average income loss is 5%. Only one household (1 person) has significant impacts, with farmland loss of 27% and income loss of about less than 5% (See Table 2.3 and Table 2.4).

Table 2.1 Information on Acquisition of State-owned Land from Pishan Canal Irrigation District Administrative Commission

Land Acquired (Mu) Affected Enterprises Affected Type of Subproject Affected Town and Public Staff Land Dry Institutions Members Total Land Others （（（person ）））

Water State-owned treatment Zhuolu Town 20 20 1 51 land Plant Information Source: Sorted out based on survey data.

Table 2.2 Information on Acquisition of Collective Land from Jijiasi

Village and Affected Households Farml and Farml and Series No. of Labor Owned Acquired Degree of Affected Persons force before by the land lost Households (person) acquisition Project （（（%）））

（（（mu）））（（（mu ）））

1．Wu Zhanfu 5 2 5.64 0.44 7.80 2．Mi Shuhai 3 1 2.55 0.25 9.80 3． Shi Kun 3 1 4.65 0.52 11.18 4．Xie baolu 3 2 4.25 0.25 5.88 5． Tian Long 4 2 4.52 0.32 7.08 6．Hou Mansheng 3 2 4.61 0.61 13.23 7. Zhao Qifu 4 2 4.94 0.5 10.12 8. Zhao Qigui 4 3 6.24 0.5 8.01 9． Wu Zhanjin 1 1 1.18 0.32 27.12 30 16 38.62 3.70 9.60 Information Source: Sorted out based on survey data; on average, agriculture accounts for the 52% of the incomes of these 9 households.

Table 2.3 Statistic Analysis on Impact on Households by Land Occupation Jijiasi Village Rate Scope of Land Loss Number of Percentage Household （（（%））） Population

1％～10 ％ 5 55 19 10% ～25% 3 33 10 25% ～50% 1 12 1

50% ～100% 0 0 0 Total 合计 9 100 30 Note: Because the land acquired belongs to odd pieces of land with a rate of land loss averaging 10%, the degree of impact is not serious on livelihoods.

Table2.4 The Degree of Households Income Loss

Degree Degree of Household farm of land income income name Annual nonononno nnn----ffffaaaarm EEExpenditureExpenditure income lost loss loss income iiininnncomecome （（（%））） (%) 1．Wu Zhanfu 58000 20000 38000 20000 7.8 1560 2.69 2．Mi Shuhai 35000 19000 16000 17000 9.8 1862 5.32 3． Shi Kun 35800 20000 15800 17200 11.18 2236 6.25 4．Xie baolu 36000 15600 20400 17000 5.88 917 2.55 5． Tian Long 36000 19500 16500 17200 7.08 1381 3.84 6．Hou Mansheng 35100 21000 14100 17500 13.23 2778 7.92 7. Zhao Qifu 37200 20800 16400 16800 10.12 2105 5.66 8. Zhao Qigui 36600 23000 13600 16000 8.01 1842 5.03 9． Wu Zhanjin 13800 8000 5800 7500 27.12 2170 15.72 323500 166900 11802.78 9.6 16022 4.95 Information Source: Sorted out based on survey data.

Table 2.5 The Compensation of Households Land Crop total compensation compensation 1．Wu Zhanfu 5200.3 6014.1 11214 2．Mi Shuhai 2998.8 3467.5 6466 3． Shi Kun 6176.12 7141.2 13317 4．Xie baolu 2998.8 1285.2 4284 5． Tian Long 3760.4 4348 8108 6．Hou Mansheng 7259 8394 15653 7. Zhao Qifu 5950 6880 12830 8. Zhao Qigui 5950 2550 8500 9． Wu Zhanjin 3736.6 4320 8057 Total 44030.02 44400 88430 Information Source: Sorted out based on agreement.

2.2 Temporary Land Occupation

Temporary land occupation by the project refers to the temporary occupation of land for construction of the transmission pipeline for the water source project. The water distribution pipeline of the project is laid alongside the rural roads and urban roads. Thus temporary occupation of land does not cause impact on the villagers.

2.3 Other Indices in Kind

According to survey, other indices in kind that are affected by the project are indicated in Table 2.6 as follows: Table 2.6 Indices in Kind on the Acquired Land

Series Pishan Canal No. Items Unit Irrigation District Jijiasi Village 1 Date and bergamot pear trees Each 20 2 miscellaneous trees Each 160 3 Total Each 160 20

3 Social and Economic Profile of the Project Area

3.1 General Information on Zhuolu County

Located in the northwest of Hebei Province and to the northwest of Beijing City, Zhuolu County is directly under the administrative jurisdiction of Zhangjiakou City. Its county seat is only 150km away from Beijing downtown, adjacent to Mentougou District of Beijing in the southeast part of the county. It is neighbored with Xiahuayuan of Zhangjiakou city in the northwest and adjacent to Weixiang County in the southwest. The county has a total area of 2802 square kilometers, having under its jurisdiction one district, 13 townships, 4 towns and 373 administrative villages. The total population of Zhuolu County in 2010 is 344500 people, becoming one of the biggest counties or districts around Beijing and Tianjin. Zhuolu County has a total mileage of 1144 kilometers of highway open to traffic with a density of highway at 41 km per 100 square kilometers. 208 villages are accessible by asphalt roads, taking up 55.76% of the total villages of the county. The total length of railway within the county is 100.7km. The county seat is 150km away from Beijing downtown. only a ride of 1.5 hours away. The National Highway No. 109, the Kang-Qi Highway, Da-Qin Railway and Sha-Wei Railway etc. all run across the county. The Zhuolu Exit/Entry of the Jing-Zhang Expressway is only 19 km away from the county seat. The transportation infrastructure of the county is being improved steadily. Zhuolu County is rich in various resources. Water resource of the county is abundant, with a total volume of 745 million cubic meters. The county has a total farming land of 508,000mu, with an annual yield remaining at 160 million kg. Besides, there are also rich forest resources with a total forest area of 1.858 million mu of forest land, of which the area of fruit trees is989,000 mu with an annual yield of 125 million kg. The forest coverage is 44%. Zhuolu County is a large grain-producing county of the country, a state-level commodity grain production base, national key-county of afforestation project, A national top-100 county of fruit output, a national model county for soil and

12 water conservation and environmental protection, the China’s home of almond – famous-particular-excellent economic tree, China’s Home of Wine, etc. The county has already formed four flagship featured industries, namely, grape, almond, vegetables, beasts and birds, etc. There are over 120 industrial enterprises all over the county, forming an industrial structure mainly of coal, chemistry, building materials, garment, machinery, electronics, wine-making, etc. The main exported foreign exchange earning products are gas cylinders, accumulator shells, garments, basic acid blue and furfural, etc. The GDP of Zhuolu County for 2010 is about 5.56 billion Yuan, with an added value of 1.65 billion Yuan for the first industry, 1.79 billion Yuan for the second industry and 2.12 billion Yuan for the third industry. The disposable income of the urban citizens of the whole county is 13,218 Yuan and the per capita net income of the rural residents is 4,853 Yuan.

3.2 General Information on Zhuolu Town

Located at the north of Zhuolu County, Zhuolu Town is the place where the county government is located. It is 77km away from Zhangjiakou City with an area of 77.21 km2. The total population as of 2010 is 67,600 people from 30 villages of 6 communities. The nonagricultural population of the town accounts for 38,600 while the agricultural population accounts for 29,000. There are a total of 197 private enterprises and 2,139 self-employed individual businessmen. The total agricultural acreage is 1326 hectares. The total social output in the countryside for 2010 is 1.1 billion Yuan, of which 360 million Yuan is the total output value of agriculture, 220 million Yuan is the total output value of industry, 50 million Yuan is the total output value for construction industry, 170 million Yuan for transportation industry and 300 million Yuan for commerce and catering industry. Income from nonagricultural sector forms the main sources of income of the town. The per capita net income of the farmers is 4,986 Yuan.

3.3 Impact in the Project Area

3.3.1 Affected Population

The permanently acquired land of the project has caused impact on 51 staff (including 15 retired staff members) of Pishan Canal Irrigation District Administrative Commission of Zhuolu County, nine households from Jijiasi village of Zhuolu Town, a total of 30 people of whom 16 are labor force.

3.3.2 Basic Economic Information of the Affected People

In order to understand the basic information of the project-affected population, the report-compilers, together with the project owner and local government officials, made a survey on the social economic condition of the affected households in April 2011. Meanwhile they also went to the Statistics Bureau, Land Resource Bureau, Water Resource Bureau and related departments to collect information and data, visited related governmental officials, Pishan Canal Irrigation District Administrative Commission, the villagers’ committee of Jijiasi Village and the affected households to ask for their opinions on the land acquisition and the compensation issues. They visited all the nine affected households whose land has been acquired. The survey rate is 100%. 1. General Economic Information on Pishan Canal irrigation District Construction of Pishan Canal of Zhuolu County was commenced in 1958 and completed in 1960 as an irrigation facility presently managed by Pishan Canal Administrative Commission. The commission has presently 51 staff members (of whom 15 are retired, but not entitled to the normal endowment insurance due to the fact that the commission has fallen into arrears with the payment of the endowment insurance for them) and a total of nearly 100 mu of land of various types, mainly of wasteland and forest land. The commission is of public institution of independent accounting, with income mainly from supplying the irrigation water to the farmers. As the usable water sources upstream are becoming rarer and rarer and the irrigation canal is out of repair for years, their actual income from the water fee is only dozens of thousand Yuan, enough for 100 Yuan as allowance for each staff member monthly, 14 which is far from enough to cover the basic living allowance. The staff members can work only for a short time during the raining season and have to work as self-employed most of the time during the year to earn the bread as the Canal Irrigation District Administrative Commission can provide only a few short-term job opportunities for them. Because the Commission has limited source of income, they have fallen behind in payment for the endowment insurance for the staff for years, totaling a sum of one million Yuan. Therefore, upon approval through discussion by all the staff, the compensation for the land acquired from them for this project will be used to pay for the endowment insurance for the staff. The Pishan Canal Irrigation District Administrative Commission is very supportive to the land acquisition for the project because they can have a big sum of money to pay for their endowment insurance. After the endowment insurance is paid, they will be entitled to the endowment after they are retired. The wasteland that is acquired did not bring them any income before it was acquired. Such acquisition does not affect the normal supply of water either. Thus, in a sense, the 51 staff members of Pishan Canal Irrigation District Administrative Commission are in fact the benefiters, not the affected, of the land acquisition from them. 2. Basic Economic Information on Affected Households of Jijiasi Village (1) Analysis on Ethnic Group and Gender Nine households with 30 people are interviewed, an average of 3.3 people each household. All are of Han nationality, with 13 women, taking up 43.3% of the total. (2)Labor Of the nine households, 16 people aged from 18 to 60 are labor, taking up 53.3% of the total. (3) Education Background Of the 30 affected people, no one has received higher education of college or higher. Only 2 received high school education, accounting for 6.7% of the total, 14 received junior middle school education, accounting for 46.7%, 13 received primary school education, accounting for 43.3% and one without any education, accounting 3.3%. In a word, the affected people have a very low level of education, all at a level of compulsory education (For detail, see 15

Table 3.1).

Table 3.1 Education of the Affected People Unit: person Education Received No Junior Households Primary High College and educatio Middle School School Higher n School 1．Wu Zhanfu 2 2 1 2．Mi Shuhai 1 1 1 3．Xie baolu 2 1 4．Tian Long 1 2 5．Zhao Qifu 2 2 6．Hou Mansheng 3 7．Zhao Qigui 2 2 8．Wu Zhanjin 2 1 1 9．Shi Kun 1 Total 1 13 14 2 Source of data: Sorted out from actual survey. (4) Land Resources Of the nine households for survey, the average land owned by each household is 3.8mu, with a per capita area of 1.3 mu. (5) Family Property Of the nine households for survey, each has an average of one color TV, 0.7 motorcycle, 0.8 battery bike, 0.1 washing machine, 0.1 computer and one mobile phone. By the family property, the living standard of the nine affected households is slightly higher than the average standard for the famers in Zhuolu County. (6) Family Income Jijiasi Village is only 4 to 5 km away from the county seat of Zhuolu County. The village has a large amount of farm land with corn and date trees as the main economic crops because the villagers believe that it does not need too much cost and management to plant the two plants and they can spare much time to do other jobs. Besides, the intensity of labor is also reduced. The main income of the affected farmers is from nonagricultural operation, doing migrant work for others and engaging in the second and third industries. Of the family income, income from doing migrant work accounts for 32.46%, income from the second and third industries accounts for 15.95% and income from 16 agriculture accounts for 51.59%. As the land is acquired in odd pieces with low percentage of acquisition, the impact on the agriculture income is 5% loss of gross income, on average. Sampling survey data on family income and expenses are shown in Table 3.2 as follows. Table 3.2 Source of Income for Affected Households

Percentage Items Total Average （%） Total Income 323500 35944 100.00 1.Income from family-run operation 218500 24278 67.54 - plantation 166900 18544 51.59 - second and third industries 51600 5733 15.95 2.wage income 105000 11667 32.46 3.transfer income 0 0 0.00 4. property income 0 0 0.00 Source of data: Sorted out from actual survey.

3.3 Survey on Public Opinions Pishan Canal Irrigation District Administrative Commission welcome the acquisition of their land by the project. They even wish to extend the scope of acquisition so that they can have more compensation money to pay for their endowment insurance. Both the cadres and workers of the commission have agreed to use all the compensation for payment of their endowment insurance. They hope that the government can build other projects on their land so that they can have enough funds to cover all the endowment payment for all the staff of the commission. All the nine households in Jijiasi Village have agreed to show support to the project construction and unanimously agreed that the project is good for the country, the collective and individuals. The affected villagers have identified with the positive influence of the project. But no household chooses the item of “increasing of employment opportunities” in the interview because they believe that they will not get a job opportunity in the construction of the water supply facilities. No affected household believes that the project will cause negative influence. All the households understand the national policy on compensation and the way of payment of the compensation. As the piece of land acquired from each household is very small, the impact is slight. 67% of the households

17 are satisfied with the compensation for the acquired land and 33% are basically satisfied. The affected households plan to use the compensation money for production investment, living expenses, education and medical expenses, etc. For other items, please refer to Table 3.3 for statistics and analysis on public wishes.

Table 3.3 Statistics and Analysis on Publish Wishes

Result (%) No. Questions Answer Choice (1) (2) (3) (4) total

increase job opportunities 0 0

improve the environment 100 100 What advantages will reduce diseases 100 100 the project bring, in 1 change the appearance of the your opinion? 100 100 town narrow the gap between urban 100 100 and rural areas more difficulties in employment 100 100

What negative fee increase for water and heat 0 0 influences will the deterioration of the local 0 0

2 project bring, in your environment opinion? damage to the water system and 0 0

road system Others 0 0 Have you understood the compensation 100 3 policy for land （1）Yes （2）No 0 100

acquisition and resettlement? （ 1 ） transfer into my bank

account The way of payment of （ 2 ） get paid in cash at the 4 compensation that 100 0 100 project office you know Are you satisfied with the compensation for （ 1 ） satisfied （ 2 ） basically 5 67 33 0 100 land acquisition and satisfied （3）not satisfied resettlement? production investment 100 100 Your plan for use of 6 living expenses 100 100 compensation money education expenses 100 100

Result (%) No. Questions Answer Choice (1) (2) (3) (4) total furniture purchase 0 0 medical expenses 100 100 building new houses 0 Source of data: sorted out from questionnaires.

3.4 The Vulnerable Groups

According to the survey, there are no disadvantaged groups such as the disabled, low-income family or family with only women members, among the project-affected people.

3.5 Impact on Women by the Project

Of the people interviewed, 13 are women, taking up 43.3% of the total. Of the households whose land is acquired, no family mainly of single woman labor due to death of husband, divorce, being abandoned, etc. is found. According to the survey, the affected women have the same legal rights as men, such as the right of land contract, right of education, right of family planning, right of vote and others, etc. Women are usually more engaged in housework and work a bit longer than men. As the land acquired by the project is of odd pieces of land, the impact is small, thus causing even less impact on women who are engaged in housework. The project causes no obvious negative impact on the women. The improvement of the water supply system and the water quality will help improve the health of women.

4 Legal Framework and Resettlement Policies

4.1 Laws, Regulations and Policies for Resettlement

In order to better implement the resettlement work for the ADB loan project namely Zhuolu County New Area Water Supply and Old Town Pipe Network Restoration Works, ensure the legal right of affected people and unit and smoothly implement the project, the project resettlement policy is formulated in line with the ADB and Chinese policies and regulations The project resettlement process must strictly follow the policies in this resettlement plan, it must get the ADB’s confirmation if any changes to these policies are proposed. Refer to table 4.1 for policy framework for the project. Table4.1 List of the Relevant Laws and Regulations

policy document Effective date

January 1 st , 1999, Land Administrative Law of PRC August 28 th , 2004, China Amended1 State Council Circular on the Decisions of Deepening Reform and October 21 st , 2004 Administrating Land Strictly (State Council [2004] No. 28

Notice on Enhance the Land Control by State Council〔2006 〕No.31 ） August 31 st ,2006

Regulation on Public Hearing for Land Resources Use May 1 st ,2004 No. 238 Decree and issued by Ministry of Land and Natural November 3 rd , 2004 Resources in 2004) (Ref. No. GTZF[2004]238)

Administrative Method for Project Land Use Approval, LR No.27 《 November 1 st , 2004

Notice on Adjusting the Compensation for Using Land for the New Constructed Project, by Ministry of Finance, Ministry of Land January 1 st , 2007 Resource and People’s Bank of China Methods for Land Acquisition Bulletin January 1 st ,2002 House Demolition Regulation of PRC January 1 st ,2001 Temporary Regulation for Tax on Land Occupation of PRC January 1 st ,2008 trails May 27 th 2005, Implementing Regulation of Land Administrative Law amended Circular on implementation opinions of Deepening Reform and Administrating Land Strictly （Document 151 in 2004, Hebei provincial December 31 st , 2004 people’s government ）(JZ[2004]151) Hebei Provincial Government Notice on Defining the Land Price for January 1 st , 2009 the Acquired Land JZ [2008]No.132 Hebei Provincial Government Notice on Comment to Set up Pension February 17 th ,2005 Security for Affected Villagers Involuntary Resettlement Policy November, 1995

Handbook on Resettlement Guide to Good Practice 1998

ADB September, 2006, Resettlement Implementation Operations Manual (OM/F2) amended

Gender and Resettler Analysis February, 2003

4.1.1 ADB Policy and Principles on Involuntary Resettlement

The three important elements of ADB involuntary resettlement policy are: (i) compensation for lost assets and loss of livelihood and income: (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services: and (iii) assistance for restoration to achieve at least the same level of well-being with the project as without it. Some or all of these elements may be present in projects involving involuntary resettlement. For any project that requires involuntary resettlement, resettlement should be an integral part of project design and should be dealt with from the earliest stages of the project cycle, taking into account the following basic principles:

(i) Involuntary resettlement should be avoided where feasible. (ii) In case population displacement is unavoidable, it should be minimized by exploring all viable project options. (iii) Replacing what is lost. If individuals or a community must lose all or part of their land, means of livelihood, or social support systems, so that a project might proceed, they will be compensated and assisted through replacement of land, housing, infrastructure, resources, income sources, and services, in cash or kind, so that their economic and social circumstances will be at least restored to the pre-project level. All compensation is based on the principle of replacement cost. (iv) Each involuntary resettlement is conceived and executed as part of a development project or program. ADB and executing agencies or project sponsors, during project preparation, assess opportunities for restoration measures, the affected people need to be provided with sufficient resources and opportunities to reestablish their livelihoods and homes as soon as possible, with time-bound action in coordination with the civil works. (v) The affected people are to be fully informed and closely consulted. Affected people are to be consulted on compensation and/or resettlement options, including relocation sites, and socioeconomic restoration. Pertinent resettlement information is to be disclosed to the affected people at key points, and specific opportunities provided for them to participate in choosing, planning, and implementation options. Grievance redress mechanisms for affected people are to be established. Where adversely affected people are particularly vulnerable groups, resettlement planning decisions will be preceded by a social preparation phase to enhance their participation in negotiation, planning and implementation. (vi) Social and cultural institutions. Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted. (vii) No formal title. Indigenous groups, ethnic minorities, pastoralists, people who claim for such land without formal legal rights, and others, who may have usufruct or customary rights to affected land or other resources, often have no formal legal title to their lands. The absence of a formal legal title to land is not a bar to ADB policy entitlements. (viii) Confirmation of eligibility. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligibility cutoff date, preferably at the project identification stage, to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits.

(ix) The Poorest. Particular attention must be paid to the needs of the poorest affected people, and vulnerable groups that may be at high risk of impoverishment. This may include those without legal title to land or other assets, households headed by females, the elderly or disabled and, other vulnerable groups, particularly indigenous peoples. Appropriate assistance must be provided to help them improve their socio-economic status. (x) The full resettlement costs are to be included in the presentation of project costs and benefits. This includes costs of compensation, relocation and restoration, social preparation and livelihood programs as well as the incremental benefits over the without-project situation (which is included in the presentation of project costs and benefits). The budget also includes costs for planning, management, supervision, monitoring and evaluation, land taxes, land fees, and physical and price contingencies. Where loans include subprojects, components or investments prepared only after project approval and loans through financial intermediaries that are likely to cause involuntary resettlement, sufficient contingency allowance must be allocated for resettlement prior to approval of the loan. Similarly, resettlement plans should also reflect the timeframe for resettlement planning and implementation. (xi) Eligible costs of compensation. Relocation and restoration may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely availability of the required resources and to ensure compliance with involuntary resettlement procedures during implementation.

4.1.2 China’s Laws, Regulations and Relevant Articles

In this Project, Land Administration Law of the People’s Republic of China is the major legal basis. State Council Circular on the Decisions of Deepening Reform and

Administrating Land Strictly (State Council [2004] No. 28, effective as of 21 October

2004) (Ref. No. GF [2004]28) defines further the principles of compensation for land acquisition and resettlement, compensation standard, land acquisition procedures and monitoring system. Correspondingly, Ministry of Land and Resources issued

Guiding Opinions on Improving Compensation and Restoration System for Land

Acquisition (No. 238 Decree and issued by Ministry of Land and Natural Resources in

2004) (Ref. No. GTZF[2004]238) and Circular on implementation opinions of

Deepening Reform and Administrating Land Strictly （Document 151 in 2004, Hebei 23 provincial people’s government ）(JZ[2004]151) was issued by Hebei Province. These documents have formed the basis for resettlement of this project. The main contents of the above-mentioned policies and their applications in the project are shown in

Table .

Table 4.2 Comparison and Application of Ref. No.GF [2004]28, Ref. No.GTZF [2004]238, JZ [2004]151 Policies in the Ref. No.GF[2004]28 Ref. No.GTZF[2004]238 JZ[2004]151 Project • The people’s governments at and • On the basis of above the county level shall adopt comprehensive statistics, effective measures to ensure that the each city should persons affected by land acquisition don’t determine uniform decrease their living standards because of annual output value of land acquisiton. land acquired. Outside • Land compensation fee, subsidy for the area of urban land • RP will strictly resettlement, compensation fee for ground using scope, the sum of implement the relevant appendixes and young crops shall be paid land compensation fee policies of the State, (1) To formulate the legally, fully and timely. If land and resettlement Hebei Province and uniform average compensation fee and resettlement subsidies can not be less Baoding Municipality. annual output value; subsidies due to current laws and than the 16 times of • AAOV for land Article 12 the (2) To identify the regulations are not enough to maintain annual output value in acquisition shall be uniform multiples of measures for their previous living standards ,or cannot local place. based on the regulations annual output value; land pay social security fee for land-lossed Cities shall hear opnions of Hebei province. (3) to formulate the farmer, the subsidy for resettlement may of farmers and village • The minimum acquisition uniform be increased with the approval of the economy organizations multiples for acquisition compensation comprehensive people’s governments of provinces, through workshop, of cultivated land shall regional land price; (4) improvement autonomous regions and municipalities.If hearings and be 16 times (inclu. Land The distribution of the sum of land compensation fee and announcement according compensation fee, land compensation resettlement subsidies reach to legal to land position and land resettlement subsidies); fee. upper limit and are still not enough to demand. On the baisis of • All resettlement fees maintain the previous living standards, the this, the compensation will be included in total local people’s government can subsidize rate of land in urban project cost. them using the fee from paid-for construction land scope state-owned land use. shall be determined. After • The uniform annual output value apprval of governement of standard or comprehensive land price of province, it can be each region should be prepred and announced and disclosed by the governemts of provinces, implemented.

Policies in the Ref. No.GF[2004]28 Ref. No.GTZF[2004]238 JZ[2004]151 Project autonomous regions and municipalities, • The compensation land compensation for the same land rate of land in urban should be equal price. The land construction land scope compensation fee of natioal key projects can not be less than the shall be included in the project budget. 16 times of annual output value in local place. • The people’s governments at and above the county level shall prepare specific measures to gurantee the future life of land-lost farmers. • As to the project which has stable profit , the farmers can buy shares through • To work out • According to the legally approved construction land use implementation plan and willingness of the rights. (1) Agricultural gradually establish affected persons, • Within the area of urban planning, production livining security system monetary ompensation Article 13 land-lost farmers shall be included in resettlement; (2) for APs. is adopted. employment system and social security the Reemployment • To gradually establish • During the system shall be established; (3) Outside resettlement resettlement; (3) adjustment fund for land construction period, the area of urban planning, for rural Sharing dividends acquistion to pay land non-technical jobs will of land-lost collective land acquisiton, local resettlement; and (4) compensation, be given to the affected government shall reserve necessary land farmers Migratory resettlement subsidies, labors in priority. for farmers or arrange jobs. For the resettlement. subsidy for baic living • Occupational training farmers who have not consitions of security and training fee will be offered to the production or living, they shall be for APs. affected people. resettled in other places. • Guiding opinions on employment training and social security system for land-lost farmers shall be proposed by labor and socia security departments as soon as possible. Article 14 • During land acquisition, the ownership (1) To inform land • Land examination and Conduct detailed

Policies in the Ref. No.GF[2004]28 Ref. No.GTZF[2004]238 JZ[2004]151 Project land of collective land and entitlement of acquisition; (2) to approval must be done socio-economic survey farmers’ land contract shall be protected. identify survey results according to legal rights, and detailed acquisition • Before approval, the use, position, of land acquisition; (3) conditions and measurement survey procedure compensation rate, resettlement channel to organize hearing on procedures. (DMS), and improvement shall be told to farmers. Survey results of land acquisition. • If the feasibility the survey results shall land acquisition shall be identified by report or other related be signed and accepted village collective economy organizations or files do not definite by the affected households affected. Hearing shall be construction in phases, households. (2) organized by departements of land and it shall apply agricultural organize public resources according to related regulations, land change and land participation and public if necessary. The identification of farmers acquisition once. hearings for should be prepared as necessary • If no opinions of APs resettlement policies; materials for approval. on compensation rate and (3) Distribute RP or • The coordination and arbitration resettlement channels or Resettlement mechanism for resettlement issues shall relevant hearing materials information booklet. be established to protect legal rights of in application, land farmers and land users. Except special acquistion shall not be situations, approved land acquisiton approved. issues should be disclosed to the public. • No land acquisition shall be made if • Construction land (1)Conduct internal and without ensuring compensation and (1) Disclose the land approval license will not external monitoring and Article 15 resettlement. approval issues; (2) be given if land evaluation; • The distribution methods of land Pay the land compensation fee is not (2) Compensation fees Strengthening compensation fees shall be formulated by compensation fee and paid fully. are directly paid to the land governments of provinces, autonomous resettlement • Land and resources affected village groups acquisition regions and municipalities according to the subsidies; and (3) departments in all levels or individuals principle of “The land compensation shall Supervision and shall strenghten to check (3) Hebai provincial supervision be used mainly by the displaced examination after the and supervise and strike PMO and land and process households”. approval of land behaviors of illegal land resources bureau • Village collective economy acquisition. approval and land conduct supervision and organizations affected by land acquisition occupation. examination; and

Policies in the Ref. No.GF[2004]28 Ref. No.GTZF[2004]238 JZ[2004]151 Project should disclose the income, expenses (4) Utilization of and distribution of land compensation fees resettlement fees shall be and accept public supervision. Agricultural,cilvil administration audited by Audit Bureau of departments shall supervise the Hebei Province. distribution and use of compensation in village economy organization.

4.1.3 Compensation Principles for the Project

The principles of compensation and entitlement for this project are decided according to the regulations and policies of Chinese government and the Asian

Development Bank (ADB), which aim at ensuring the access of the APs to enough compensation and support, at least to ensure the restoration of their living standard prior to the project. The resettlement principles of the project are as below.

• Involuntary resettlement should be avoided or minimized where feasible; • Compensation and entitlements provided for the APs should be able to at

least maintain, or improve their “pre-project” standard of living; • No matter whether they have legal entitlements will All APs be compensated and assisted;

• The economic compensation should be enough to maintain the same level prior to the resettlement when the resettlement happens. • Where land per capita after land acquisition is not sufficient to maintain

livelihood, compensation by cash or through land replacement and other income-generating activities will provided for; • All APs will be adequately informed on eligibility, compensation mode and

standards, livelihood and income restoration program, project timing, and will be involved in RP implementation; • No land acquisition will take place unless replacement land or sufficient

compensation are given to APs; • The EA and independent/ third party will monitor compensation and resettlement operations;

• Vulnerable groups will receive special assistance or treatment to ensure then to better off. APs should have the opportunities to benefit from the Project; • RP should be combined with overall county planning;

• RP budget should be adequate and cover full aspects.

4.1.5 Compensation Eligibility Cut-off Date

Zhuolu Town Government announced the eligibility cut-off date as 31st

December, 2010. After the date, the settlement in the affected areas, newly cultivated land, newly built houses as well as any newly planted trees or newly added facilities of the affected persons aimed at extra compensation will be excluded from the range of compensation and subsidy

4.2 Compensation Standard

4.2.1 Principles for Determination of Compensation Standard

The compensation standard for lost property should be based on the replacement principle as follows: (i) Compensation fees will be paid before land and property acquisition. (ii) Training and assistance should be provided to the APs so as to create more employment opportunities and maintain their living level. (iii)

Compensation for crops, trees and ground-attached properties are paid according to their market prices. (iv) Project management should be strengthened to shorten construction period and reduce negative impacts.

4.2.2 Compensation Standard

The basis of formulating the compensation rates are extensive consultations with relevant agencies such as LAB, and negotiations among IA, EA, affected townships, villages and representatives from potential APs. According to site survey made by TMEDI and related departments, based on adequate consultation with ZLLAB and affected households, the compensation rate for the Project has been determined as the following:

（1）Compensation Standard for Rural Collective Land

① Land Compensation Standard

In accordance with the regulations of the Announcement of Implementing the 30

Land Pricing for District Land, JZ [2008] No.132, the project will acquire the collective land from Jijiasi village, Zhuolu town, which belongs to District 7 in

Zhangjiakou city, the unit cost for the acquired dry land is 28,300yuan/mu. Based on the onsite survey and statistics analysis, calculating average annual output value of the three years prior to land acquisition for cultivated land (corn and wheat), the average annual output value is 800yuan/mu. The land approved compensation multiple is 35 times of the annual production value of the land. The land compensation standard of the project is obviously higher than the national minimum compensation (16 times) level. Refer to table 4.4 for the compensation and subsidy standard. However, the land acquired by this project is not far away from downtown.

In accordance with the negotiation between IA and township government and village collective group, the land compensation for this project was fixed as

38,000yuan/mu (34% higher).

Table 4.4 Land Compensation and Subsidy Standard Actual Compensation compensated Project ownership Land type standard by standard law （yuan/mu ）（yuan/mu ） Water area for Zhuolu County New Area Water Supply and collective dry 28300 38000 Old Town Pipe Network owned Restoration Works

②Compensation Standard for Ground Attachments

Refer to table 4.5 for compensation standard for on ground attachment. Table 4.5 Compensation Standard for other Ground Attachments

Type Item Unit Unit price （yuan ）

compensation poplar （young tree<5cm ） individual 10 for tress

Compensation Dry land Mu 800

for green crops river bank Mu 680

For this project based on the land evaluation, compensation fixed via negotiation

Note: the above table is for basic reference as the minimum standard; when the

Notification was announced, the ground attachments included tress only, no crops.

After the negotiating with affected households, the valuated market value is higher than compensation standard, but it also includes green crops.

(2) Compensation Standard for Permanent Occupying State-owned Land

In accordance with the Land Administration Law of PRC and other relevant Implementation Regulation, Zhuolu County has the land use right and the right of transferring the land use right, leasing, mortgaging and pooling land as share. It is to calculate the land asset value/standard based on the price benchmark, referring to the factors of location, regional factor, individual factor, useful lives, assessment date, dimension, development status, ground deepness, amended position departure. The land use right of the project water area belongs to Pishan Canal Administrative Commission (an administrative organization under county water department). This is vacant waste land, and belongs to the state-owned land transferring. The price of the waste land should have been 16,980yuan/mu, counting as 60% of normal land price, excluding ground attachment. Considering the reality and difficult status of Pishan Canal Administrative Commission, after the negotiating, it was agreed to adopt the compensation standard as 25,000yuan/mu including ground attachment; actually there were very few ground attachments. Based on the consultation and discussion with PMO, affected unit and relevant administrative department, the compensation standard was defined as below in table 4.6.

Table 4.6 Compensation Standard for Permanent Occupied State-owned Land Project Land Type Compensation standard （yuan/mu ）

ownership Actual land Ground attachment compensation for this compensation project Water area for Zhuolu County New Area state-owned Vacant Water Supply and Old 25,000 none land waste land Town Pipe Network Restoration Works 地

4.3 Other Compensation standard

Refer to table 4.7 for other resettlement cost

Table 4.7 Other Resettlement Cost No. Item Standard Reference Recipients forest vegetation Forestry 1 4,000 yuan/mu CZ 〔2003 〕No.73 restoration bureau The Land and Resources tax for occupying State Council 2 8,004 yuan/mu Bureau will be cultivated land order 【511 】 authorized to collect the tax Implementation land resources reclaimed regulation for the bureau 3 cultivated land 6,667 yuan/mu Land fee Administration Law of PRC land land resources compensation bureau 4 9333.4 yuan/mu CZ 【2006 】No.48 fee for new construction land managerial fee land resources 5 for land 1667.5 yuan/mu bureau acquisition monitoring lump sum of 50,000 Professional 6 consulting fee yuan institution managerial fee RP 3% of the resettlement 7 for LAR implementing compensation fee implementation agency RP 0.5% of the resettlement 8 training implementing compensation fee agency 33

external external 9 lump sum of 40,000yuan monitoring monitoring fee agency physical 10% of the total contingency 10 compensation fee, other (basic reserve fees and tax funds) price 5% of the total 11 contingency compensation fee, other (reserve funds) fees and tax

4.4 Flow of Resettlement Funds

As part of the resettlement fees, land fees were paid in December 2010. See the cash flow in figure 4.1. In principle, the compensation fees for ground attachment on acquired land are directly disbursed to the property owner. The land compensation fees and relocation subsidy are distributed to land owner or land user before acquiring the land. In accordance with the regulation of Land Administrative Law of PRC, the land compensation must be disbursed to land owner or land user, the resettlement fees must be used for relocation due to land lost by land acquisition through the negotiation between village committee and affected people. Referring to the disbursing means for previous projects, it was agreed by the villagers that 31% of the land compensation, including resettlement subsidy, and 100% of the ground attachment fees will be distributed to affected people. The rest of the land compensation fees will go the collective owned account for the transportation facility development and education improvement for the village. Based on the calculation, the compensation paid to affected households for dry land is 11,900 yuan/mu (excluding green crops fees).

69% land Zhuolu Zhuolu Township compensation → Finance → Land → → Village Committee Government fees Bureau Resources

Bureau

31% land compensation Zhuolu fees and Zhuolu Land Township Village 100% ground → Finance → → → → APs Resources Government Committee attachment Bureaue Bureau compensation fee

Miscellaneous Zhuolu Finance Zhuolu Land Resources Bureau & → → Taxes& Fees Bureaue Forestry Bureau

Planning and Water Zhuolu Finance Designing → → Supply → RP compilation agency Bureaue fees Company

Water Zhuolu Finanel Training fee → → Supply → Training agency Bureaue Company

Water Monitoring & Zhuolu Finance → → Supply → external monitoring agency Evaluation Fee Bureaue Company

Figure 4.1 Flow Chart of Compensation Flow

4.5 Compensation Entitlement Matrix

The entitlement matrix is presented in table 4.8

Table 4.8: Compensation Entitlement Matrix Type of Impact Degree Entitled Entitlements and Compensation Impact Persons measures of Policies implementation

35 permanent dry land 3.7mu 9 households 1. Affected households In accordance with loss of land with 30 obtain 31% of the land pricing for acquired persons, in compensation and 100% land in Zhuolu county, Jijiasi village, compensation for land the compensation Zhuolu town, attachments. standard is 28300 Zhuolu county 2. The village group will yuan/mu. obtain 69 % land Compensation for compensations fee for ground attachment will public utility based on the refer to assessed previous practices. market price. Jijiasi village committee believed the land price is too low, after negotiation, it was agreed to adopt the price as 38,000 yuan/mu. After getting the compensation, the village group will distribute 31% of the compensation to APs. vacant waste 51 employees to pay the pension Land compensation land 20mu (including, 15 insurance for the (including retired employees compensation for on employees) of ground Pishan Canal attachments) :25,000 Administrative yuan/mu, Commission

5 Resettlement Budget and Financing

5.1 Resettlement Fees

All the expenses of land acquisition and resettlement are included in the cost estimates of this project. Based on the price level of 2011, the resettlement expenses for this project are estimated to be 1.373 million yuan, including 185,000 yuan compensation for rural resettlement, 500,000 yuan compensation for enterprises and public institutions, 114,000 yuan for other expenses, 395,000 yuan for taxes and charges, and 179,000 yuan for contingencies. The detailed expenses are listed in the Table 5.1. Table 5.1 Lists of Resettlement Expenses of This Project

Compensation Compensation No. Lists of resettlement Unit unit price Quantity amount (yuan) fees (yuan/unit) Resettlement 1 685000 compensation Land compensation and 1.1 resettlement subsidy Dry land, including ground mu 38000 3.7 140600 attachments Waste land mu 25000 20.0 500000 1.2 Compensation for crops Evaluation/ Dry land mu 3.7 44400 consultation Evaluation/ Waste land mu 20.0 0 consultation 2 Other costs 113975 Survey and design costs yuan 50000 50000 Implementation yuan 3.00% 20550 management costs Technical training cost yuan 0.50% 3425 External monitoring and yuan 40000 40000 evaluation cost Related taxes and 3 395004 charges Forest vegetation mu 4000 20 80000 rehabilitation cost

Arable land occupation tax mu 8004 3.7 29615 Arable land reclamation mu 6667 3.7 24668 cost Compensation for utilization of newly-added mu 9333.4 23.7 221201 construction land Management cost of land mu 1667.5 23.7 39520 acquisition 4 Subtotal of 1-3 1193979 5 Contingencies 179097 Basic reserve funds yuan 10% 119398 Price contingencies yuan 5% 59699 6 Total 1373076 Notes: According to the regulations of the Pishan Canal Irrigation Area Water Conservancy Administration Committee, the compensation price for wasteland in the area is 16,980 yuan/mu (which is calculated according to 60% of the compensation price of 28,300 yuan/mu for dry land in the area). After consultation with the affected people, the compensation price for wasteland is 25,000 yuan/mu after including the compensation for crops. The compensation price for rural collective land in Jijiasi Village is raised to 38,000 yuan/mu from the original compensation price of 28,300 yuan/mu after consulting with the affected people. The compensation price for crops is based on the market price at a high evaluation level. The cost of road repairs due to pipeline construction is included in the cost of the project civil works.

5.2 Financing and Allocation Plan for Resettlement Funds

The resettlement expenses for this project will be paid by the Zhuolu Finance Bureau. The compensation of 185,000yuan for acquisition of rural collective land has been paid to the affected villages and households in April 2011, of which 140,400 yuan was for land compensation and 44,600 yuan for green crops compensation. The compensation of 500,000 yuan for acquisition of state-owned land will be fully paid before commencement of civil works in September 2011. The formal application for land transfer is now in progress.

5.3 Resettlement Fund Management

To ensure a timely and full payment of resettlement fund and the production and income rehabilitation of affected households, the following measures are taken: All the expenses related to land acquisition, house demolition and resettlement are included in the general estimates of this project. All the compensations for rural collective land are fully paid before land acquisition so as to ensure the proper resettlement of affected villagers. The compensation for state-owned land should be fully paid before September 2011.To ensure the smooth implementation of land acquisition and resettlement, the financial and supervision agencies have been established at various levels to ensure the timely and full payment of resettlement expenses. The budget is the cost estimates for resettlement. Owing to the factors such as variation of project scopes, real impacts of detailed measurement survey (DMS), adjustment of compensation standard, and inflation, the expenses are subject to increase. But the government of Zhuolu County will promise to pay for the full cost of compensation and fees. The estimates have taken into the consideration of the contingencies and are subject to adjustment according to actual needs.

6 Resettlement and Restoration Plan

6.1 Livelihood Restoration Plan

6.1.1 Resettling Scheme for the Affected Units

The Zhuolu water supply project will construct water supply plant which will acquire 20mu of land. Some area land of Pisha Canal Administrative Commission will be acquired and affected, while its water supply business remains unaffected by the project impact. The acquired land was planted with some fruit trees by the employees. Due to the poor land condition, production from the land was quite few, and most of trees were cut for firewood by the employees. The land acquisition will not affect the normal business of Pisha Canal Commission. Since lacking of the water from upstream and poor maintenance to the Canal, the business was trapped in difficult situation. The Commission could disburse 100 yuan/p/m as the basic living subsidy to its employees. The employees of the Commission mainly rely on outside work business to earn income to maintain their living. They could be classified as the laid off workers. According to the thorough negotiation between IA and the Commission, the project will pay 500,000 yuan as the compensation to the Commission. During the overall employee meeting, it was agreed to use this fees to pay for the employees’ pension insurance so as to gain pension when those employees retire in the future. Therefore, the project has positive impact to the Commission.

6.1.2 Livelihood Restoration for the Affected Households

The project impact to the affected family’s income is quite small, therefore, the livelihoods are not affected and the income restoration can mainly adopt the means of cash compensation and encouraging more outside working, since they will have more free time. In Jijiasi village in Zhuolu town, 8 pieces of land with the total area of 3.7mu (each is less than 0.6mu lost) will be acquired. 9 households with 30

40 persons are affected by the land acquisition. On average, each household will lose 9.6% of their cultivated land, which cause loss of income. On average, only 5% of their income will be lost, that is to say it has slight impact to the affected households. Among the 9 households, Wu Zhanjin (single person household) has a serious lost counting 27.1%. The project acquires 0.32mu of his cultivated land, and only 0.84mu remains. Comparing with average area of the surrounding villages, Wu has more than the average land holding even after land acquisition. Since Wu Zhanjquan is counted as 1 household, therefore, the left 0.84mu land is enough for him to maintain his livelihood. Wu relys on going outside to gain his major income rather than on planting crop on his land. His annual income reached 13,000yuan in 2010, which is a quite high income level. According to the reality of the land acquisition in Jijiasi village, after the negotiation with affected groups, the livelihood restoration includes: （1）Part of the villagers plan to deposit the land and green crop compensation into their bank account to gain interest income. Based on the calculation, the revenue from interest is greater than the income lost caused by land acquisition. Taking Wu Zhanjin as an example, he receive 8086.6 yuan from the loss of his land, while the annual interest for living deposit, assuming 3.25%, will be 261.8yuan. If using this 0.32mu for planting corn, deducting the cost for seeds, fertilizer, chemicals and irrigation, the net income and returns to labor is less than 200 yuan. （2）To develop labor service economy. In order to increase the affected people’s income, the affected villagers will choose to going outside to find work to increase their income. So far, the labor market in Zhuolu is quite demanding. Many enterprises in Beijing also recruit workers from Zhuolu. Zhuolu is 150km from Beijing city; it takes 1.5 hours driving to Beijing, which is a convenient condition. And most of the affected people express that they prefer to work outside their home. From the survey result, most of the affected people are satisfied with the resettlement compensation, few of them are merely satisfied, and no one feels unsatisfied with it.

6.2 Production Restoration Plan for the People Affected by

Temporary Land Occupation

The pipe network construction work will occupy some roads in urban and rural, after which the road network function will be recovered. The urban infrastructure including electricity power, communication power line and pipeline will be affected by the project. The damaged road should be repaired and fixed. The cost for the repairing and maintaining work is included as part of the road and communication network construction and infrastructure construction work, so is no included in the budget of this RP.

6.3 Training

Due to the small amount of land acquisition and minor impact on 9 affected households, there is no need to have special training for the affected people. The government expresses that the members of affected householders may join different trainings for free if needed. So far, the affected believe there is no need to have training yet.

6.4 Vulnerable Groups and Women Rights

The vulnerable groups and other destitute people are not affected by the permanent land acquisition. If there is temporary impact, those people will receive special supporting and assistance on the aspect of reemployment during the resettlement process and construction period by the government. Those affected groups will get priority to be hired to work during the project implementation process, if needed. Through the survey, women affected by the project are positive to the project construction, and hope to gain more job opportunities. The project has minor impact to a few affected households, and women status in family still remain unchanged.

7 Institutional Framework

7.1 Institutional Framework

In order to ensure the smooth resettlement implementation, 2 officers are assigned to work on and be responsible for the land compensating issue for the resettlement activities. At the same time, both ZLDRB and the Zhuolu town government assign specific officers to work on this issue and be responsible for the coordination work. At the village committee level, persons were assigned to work on implementing the resettlement too. Refer to 7.1 for the project resettlement institution structure.

7.2 Staffing of the Institutions

During the resettlement process, the resettlement agencies at all level assign special working staff for this task, which forms a communication channel to transfer the information. Refer to table 7.1 for list of institution staffing.

Table 7.1 Staffing of Resettlement Agency Institutions Staffing （（（person ））） Qualification Hebei provincial PMO 2 civil servant ZLDRB 4 technician Zhuolu town government 1 civil servant Jijiasi vilage committee 5～6 cadre&representative of APs External M&E institution 3 Resettlement expert

7.3 Responsibility and Contact Info of the Resettlement Agencies

Table 7.2: Responsibility and Contact Info of the Resettlement Agencies

Contact Project Institution Responsibilities Tele. person Zhuolu County New Area Hebei Leading and coordinating resettlement activities, approving PR and implementing internal supervision 0311- Zhang Water Supply and Old Town provincial and inspection t 66651594 Xinrui Pipe Network Restoration PMO Works Hebei Formulating resettlement policies, preparing RP and implementing the RP 0311- Zhang provincial 66651594 Xinrui PMO ZLDRB ZLDRB is the IA of the project, responsible for social economic and physical product investigation, 0313- Ge assisting to prepare RP, liaison with land resource bureau, town government and Jijiasi village 652122 Shengli committee 6 ZLLRB Responsible for processing land acquisition procedure, verifying, approving, and implementing the 0313- Feng coordinating, managing, supervising and arbitrating work for the resettlement. 658384 Jianfeng 8 Zhuolu town Co-working with PMO on the base investigation, signing land acquisition agreement with land resource 0313- government bureau, assisting land management department on implementing land acquisition, house demolition Li Xinhua 652852 and relocation 3 Jijiasi village Village committee is responsible for providing land contracting materials, assisting the resettlement 137853 committee agencies to carry out investigation and land re-leasing after the acquiring the land, providing support to 16563 Wu Bin vulnerable group, working on project advising, companying with relevant technicians on measuring and evaluating land price as well as resettlement negotiation, providing list of vulnerable group.

7.4 Training Plan

During the resettlement process, it is planned to organize study trips to visit some ADB projects and train the key staffs in the resettlement agencies with resettlement policies and other professional knowledge. Zhuolu County PMO is responsible for organizing the training. Refer to table 7.3 for training schedule.

Table 7.3 Training schedule for resettlement agency staff

No. Training contents Target group Time Venue Cost （（（yuan ）））

visiting domestic key staffs in October, 1 ADB projects, site domestic 7000 PMO 2011 study

resettlement resettlement Shijiazhu 2 business July, 2011 7000 staffs ang city knowladge training

45 8 Public Participation, Consultation and Grievance

8.1 Public Participation

In line with policies and regulations related to land acquisition and house demolition by ADB and Chinese government, with the purpose to maintain affected people’s legal entitlement, eliminating the complains and conflict, considering the characteristics of the project, it is requested to formulate relevant policies and implementing regulations for the project resettlement, prepare comprehensive resettlement plan and well organize the implementation work so as to achieve the target of the project resettlement. It is very important to have the APs participating in the resettlement negotiation, listen to and collect APs’ opinions when preparing the resettlement polices and plan, and during the implementation progress. Refer to table 8.1 for the public participation procedure. Table 8.1 Public Consultation and Participation Purpose Engaement Time Participants Topic negotiating the Decem ZLDRB, ZL town land project location, land area, compensation meeting ber, govt. and Jijiasi acquisition standard and re=employment etc.. 2010 village committee issue informing and consulting on land acquisition ZL town govt., issue, listening Decem relevant village Inform the information about project location, to different meeting ber, cadres, affected land area, compensation standard and opinions, 2010 enterprises and re=employment etc.. defining households income restoration plan. physical ZLDRB, ZL town on site survey to measure the physical measuring and Decem govt., Jijiasi village objectives affected by project, investigate the site Site visit ber, committee, affected basic information of the affected enterprises investigation, 2010 enterprises and and households social households and

46 economic designing staffs investigation and preparing RP public land Decem ZLDRB, ZL town public the info about acquired land area, announcement acquisition ber, govt. and related compensation standard and means of bulletin and bulletin 2010 village committees relocation. village meetings land ZLDRB, ZL town acquisition Public govt. and related Decem and announcement village committees ber, means of disbursing compensation fee resettlement bulleting and 2010 compensation village meetings bulletin physical ZLDRB, ZL town January measuring and site visit govt. and related rechecking and finalizing the project impact , 2011 re-checking village committees ZLDRB, ZL town defining Decem govt. and related income discuss the final income restoration plan, meetings ber, village committees, restoration compensation utilization plan 2010 affected enterprises plan and households

Through the baseline survey, the 9 households affected by project are still positive and willing to support the project implementation, 6 of which are satisfied and 3 of which are merely satisfied to the project.

8.2 Grievance Channel

In order to ensure the legal entitlement of the affected people, grievance channels have been set up and open to the affected people during the process of preparing the resettlement plan and implementation process. It contains 5 stages as below:

Stage 1: if the affected people do not satisfy with the resettlement plan, they could appeal to the village committee by oral or written complaining. Village committee should record complains and disposal process if it is an oral complain. The complaints should be responded and resolved within 2 weeks.

Stage 2: if the affected people do not satisfy with the disposal result at Stage 1, when receiving the disposal decision, they could appeal to county PMO/ management

47 institution. The county PMO/management institution should dispose the complaints with 2 weeks.

Stage 3: if the affected people do not satisfy with the disposal result at Stage 1, when receiving the disposal decision, they could appeal to provincial PMO/management institution. The provincial PMO/management institution should dispose the complaints with 2 weeks.

Stage 4: if the affected people do not satisfy with the disposal result at Stage 2, when receiving the disposal decision, according to the Administrative Litigation Law of China, they could appeal to higher administrative department to request arbitration.

Stage 4:If the affected people do not satisfy with the arbitration result, when receiving the arbitration result, according to the Administrative Litigation Law of China , they could sue to the civil court.

Affected people could appeal to bring cases to relevant administrative departments, including the aspect on compensation standard. The affected people will be informed with grievance disposal procedure will be informed by all means of communication including meetings so as to understand they have the right to appeal. Meanwhile, mass media will be use as a communication tool to reinforce the propaganda for the project. All different opinions, advises and suggestions will be recorded and archived then handed over to resettlement agencies at levels for further resolving. The resettlement agencies would be accept all complains and appeals from the affected people, the cost of handling and resolving the complaint cases will be covered by the resettlement budget contingency fund. The grievance procedure is still available and effective for 1 year when the project construction is finished so as to ensure the affected people could utilize this channel to process other relevant problems.

48 9. Monitoring and Evaluation

The PMO and IA will regularly monitor and evaluate the implementation of land acquisition and resettlement activities in order to ensure resettlement work is implemented successfully in accordance with the RP, and to achieve the target of appropriate livelihood restoration for APs. The monitoring will comprise two components: internal monitoring and external monitoring.

9.1 Internal Monitoring

The internal monitoring will be undertaken by Hebei provincial PMO with the assisting by county government, village committee and other supporting institutions. The resettlement agencies should set up the database to record the basic information of the land acquisition and resettlement which will be utilized as the baseline for preparing resettlement plan and conducting internal monitoring for the whole resettlement progress.

9.1.1 Monitoring Components

（1）find out the existing problems, investigate, assist and propose suggestions to problems during the implementation;

（2）income restoration for APs after land acquisition;

（3）disbursement and use of land compensation fee;

（4）the affected people’s participation and negotiation status during the resettlement implementation;

（5）resettlement training and training outcome;

（6）complains and appeals.

The internal monitoring report should describe the latest resettlement progress,

49 the existing problems and proposed resolution. The negotiation progress, changes to resettlement schedule and budgeting should be included as well.

9.1.2 Internal Monitoring Report

The project should prepare report to describe the land acquisition and resettlement progress and submit the report to ADB every 6 months.

9.2 External Monitoring

Before the land acquisition, the project IA has entrusted an independent third party to carry out the external monitoring for the project. The College of Humanities and

Development of CAU (China Agricultural University) was engaged as the external monitoring agency on 20 May 2011.

9.2.1 Monitoring Procedure and Components

The external monitoring institution should periodically follow up the resettlement progress, monitor and evaluate the resettlement progress, quality of the implementation and utilization of funds and provide advisory opinion. It should also follow up and monitor the APs’ production and livelihood and submit the monitoring report to ZLDRB and ADB. (1) Baseline survey: the external monitoring institution should conduct the baseline survey for the affected villages; collect the basic information regarding the APs’ living, production and income. Livelihood and production survey should be conduct 1 time per year so as to follow up the changes of the APs’ livelihood and production level. It is to adopt the overall census (it is suggested to cover all affected households, since there are only 9 households affected by the project), interview and site observation to gain the necessary materials and information. The evaluation will be worked out based on the analysis of the basic information. (2) Regular monitoring and evaluation: the external monitoring institution should conduct the resettlement monitoring every 6 months during the resettlement

50 implementation progress by utilizing the means of site observation, sampling survey and informal interviewing with APs. The monitoring activities include: the progress of land acquisition and disbursement of land compensation. new means of livelihood and work ； production and livelihood restoration for APs ； the operation and efficiency of resettlement agencies.

9.2.2 External Monitoring Report

During the resettlement implementation process, the external monitoring institution should submit the external monitoring report to ADB every 6 months, after the resettlement, the external monitoring institution should submit annual report to ADB, for 2 years.

51 Annex I. TOR for External Monitoring & Evaluation

1. The Purpose of Resettlement Monitoring and Evaluation

According to the requirements of ADB’s resettlement policy, external monitoring and evaluation will be conducted during implementation of the Supply of Water Supply and

Distribution Pipelines for Zhuolu County New District Waste Supply Subproject . The follow-up evaluation will be conducted during the land acquisition and resettlement through checking the progress, fund and management of land acquisition and resettlement and through analyzing and comparing the changes and restoration of production and living standards of those affected persons. Apart from the regular submission of report to ADB, Zhuolu

Development and Reforming Bureau and concerned department (twice a year in the resettlement implementation), information and advice are also provided for every department to make decision as a reference. Through the external monitoring and evaluation, Asian

Development Bank and departments in charge of the program get sufficient information about whether the land acquisition and resettlement are implemented in time and up to the requirements. Moreover, problems are pointed out and suggestions for the work improvement are given.

2. Major Components for Resettlement M&E

（1）M&E on land acquisition progress, including: ①land acquisition progress ；② project impact progress 。

（2）M&E on fund utilization progress, including ①Fund raising or allocation progress;

②Compensation disbursement progress (planned and actual) 。（3）APs living level M&E, including: ①APs living level prior to resettlement ；②APs living level after resettlement ；③Comparison & analysis of APs employment and living level before & after resettlement 。（4）Evaluating the institution’s capability, assistance to vulnerable group, process of participation and the mechanisms and efficiency of grievance procedures.

3. Technical Procedures for Monitoring and Evaluation

52 Project endorsement

Prepare RP evaluation outline

Prepare questions and tables for investigation

Prepare the scheme of random sampling

Baseline investigation

Establish M&E information management system

Monitoring investigation

Social Monitor IA ’s Monitor the affected Monitor affected economic performance village group households

Establish data files

Compare analysis and make assessment

Prepare monitoring report

No Check the completion of monitoring

Draw conclusions

Technical procedure map

4. External M&E Agency The external monitoring and evaluation will be undertaken by an external monitoring agency authorized by Zhuolu Water Supply Company and acceptable to the ADB. 5. Organizations and Responsibilities Zhuolu Water Supply Company entrusts an external monitoring institution to

53 responsible for the baseline survey, following up the survey result, collecting the basic data and conducting analysis. Monitoring report should be prepared and submitted with proposed advisory and suggestions. The external monitoring institution will set a “Resettlement Monitoring & Evaluation Group” which is led by experienced resettlement experts. According to the requirements of ADB’s involuntary resettlement policies, the task for the M&E group is to monitor and evaluate the resettlement progress, prepare monitoring ToR, set up monitoring indicator, carry out on site monitoring and analysis and prepare the monitoring and evaluation report. Zhuolu Water Supply Company should provide assistance on the aspects of human resources and transportation during the process of external M&E, especially for the onsite investigation. 6. M&E Methodology The monitoring and evaluation adopts a combined method of field investigation, calculation & analysis, and comprehensive assessment by experts. The investigation is to be conducted in the way of a combination of the key parts with the whole project. There should be a overall investigation of the resettlement implementation progress, funds, institutions and management. And a sample investigation should be carried out among affected households.

A sample investigation should be carried out among affected households. the investigation will cover 9 households. The overall investigation adopts the forms of table investigation, forum discussion, inquiring of documents and archives. Photos, audio and video records and objects should be collected apart from written materials.

7. External M&E Report The external monitoring agency should submit a resettlement monitoring report every six months, and an annual resettlement evaluation report to ADB. The external resettlement M&E shall following the schedule listed below in table 1:

Table 1 Resettlement M&E Schedule

No. M&E Report Date

1 Social and economic baseline investigation, June 30 th , 2011

54 Semi-annual external monitoring report 2 June 30 th , 2011 (M&E Report No.1)

Semi-annual external monitoring report 3 December 31 st , 2011 (M&E Report No.2)

Annual external monitoring report (M&E 4 November 30 th , 2012 Report No.3)

55 Annex II Hebei Provincial Government Notice on Defining the Land Price for the Acquired Land

Hebei Provincial Government Notice on Defining the Land Price for the Acquired Land

JZ 〔2008 〕No .132

All municipal government, county (city, district) government and all provincial administrative department: With the purpose to better implement the land acquisition work, safeguard the land use for the project construction, maintain the legal right of affected villagers, ensure maintaining the livelihood of the affected villagers, in accordance with State Council Circular on the Decisions of Deepening Reform and Administrating Land Strictly (State Council [2004] No. 28, and the principle of same price for same land, it is to formulate this land pricing standard for all acquired land in whole province, now is published and become effective on January 1st , 2009 To acquire collective land, it is to use the given land price times the measured area to define the amount of land compensation fee. The land price of bare land in mountain area and wasted land on dam, is counted as 60% of the given land price. No unit of individual is allow to raise or reduce the land compensation standard. Compensation standard for large scale irrigation work and power plant, is defined by state council. Before relevant regulation is released by state council, the land compensation should be fixed as 16 times of the average annual production value of the prior 3 years. The compensation fees should be enough to maintain the affected villager’s livelihood, if there is need to raise the standard level, the project implementation agency and relevant administrative department should submit for verifying and approval by the project. 20% of the compensation fees for collective owned land belongs to the collective group, while 80% if which belongs to the land owner or user in accordance to the terms of land renting contact. If the user right for the acquired land is not clear, the compensation fee belongs to collective group. The village group could utilize the compensation fee according to the laws and regulation. Any individual or unit is not allowed to reserve or use this compensation fee for other purpose. If there are ground attachments or green crops on land, the property owner could have the compensation for those. Compensation for ground attachment is set by district level government. Compensation for green crops should refer to the actual production at time. Before the approval, the city, county government should allocate social security fee for affected villagers based on the 10% of the given land price. This amount of fund is used for social security only. City social security department should timely issue relevant document to confirm the social security measures when the fee is transferred to a special bank account. Social security fee is counted into the cost the land cost and it should be listed. If there is gap to reach the minimum payment, the local government should work out the resolution to fill the APs. All city, county (city) government and land resource bureau should actively advise the land

56 price policies, work out possible solution against the raised problem so as to ensure the smooth implementation. Provincial government has the right to amend the land price policies based on the social and economic development when needed. List of land price for the acquired land in Zhangjiakou （see attachment ）

December 31 st , 2008 Attached Figure: Land price for acquired land in Zhangjiakou city

Annex III Pictures Related to Resettlement

Figure1 ground water well in project area (crop land behind the hill )

Figure 2 : Pumping well area1 （cultivated land ） Figure 3: Pumping well area2 （cultivated land ）

Figure 4 : Pumping well area3 Figure 5 : Pumping well area4

Picure6: water supply project site (open forest ) Figure7: PMO staffs is checking the land use

Figure8: Pishan Canal Administrative Committee Figure9: Statistic form of the committee staff

Figure10: IA and consultants discussing RP Figure11: consultants talking with APs

Figure12: Explanation on compensation Figure13: Land use materials by Distribution by Zhuolu town govt. Zhuolu Land Resource Bureau

Figure14: land price for Zhuolu town Figure15: Distribution plan forJijiasi village

Figure16: Agreement signed between IA and affected household