Resettlement Plan

May 2019

PRC: Guangxi Regional Cooperation and Integration Promotion Investment Program (Tranche 2)

Prepared by the Guangxi Pingxiang Urban Construction Investment Co. Ltd. for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 31 May 2019)

Currency unit – yuan (CNY) CNY1.00 = $0.139 $1.00 = CNY7.14

ABBREVIATIONS

ADB – Asian Development Bank AP – affected persons DI – design institute DMS – Detail Measurement Survey EA – executing agency PLRB – Pingxiang Land Resources Bureau PMG – Pingxiang Municipal Government PPMO – Pingxiang Project Management Office FSR – feasibility study report GZAR – Guangxi Zhuang Autonomous Region HH – households LAR – Land Acquisition Resettlement LRB – Land Resources Bureau M&E – monitoring and evaluation RIB – Resettlement Information Brochure

NOTE

In this report, “$” refers to US dollars.

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

ADB financed: Guangxi Regional Cooperation and Integration Promotion Investment Program (Tranche 2)

Phase-I of Connectivity Project in Pingxiang Sino-Vietnam

Cross-Border Economic Cooperation Zone

Updated Resettlement Plan May 2019

Guangxi Pingxiang Urban Construction Investment Co. Ltd.

Contents

ENDORSEMENT LETTER FOR UPDATED RESETTLEMENT PLAN ····························· 2

ABBREVIATION & UNIT OF MEASUREMENT ·························································· 4

EXECUTIVE SUMMARY ······················································································· 1

1 BRIEF INTRODUCTION ····················································································· 4

1.1 BACKGROUND ······························································································· 4 1.2 PROJECT DESCRIPTION ···················································································· 4 1.3 PROJECT INSTITUTIONS AND INVESTMENT ······························································ 6 1.4 IMPACTS MITIGATING MEASURES ········································································· 6

2 LAND ACQUISITION AND RESETTLEMENT IMPACTS ··········································· 8

2.1 METHODS FOR IMPACTS EVALUATION ···································································· 8 2.2 RESETTLEMENT IMPACTS ·················································································· 8 2.2.1 Permanent Land Acquisition ······································································ 9 2.2.2 Temporary Land Occupation ···································································· 10 2.2.3 Ground Attachments and Infrastructures ····················································· 10 2.2.4 Affected Vulnerable Groups ····································································· 11 2.3 EVALUATION OF LAND LOSS ·············································································· 11

3 SOCIO-ECONOMIC PROFILE OF THE AFFECTED AREAS AND POPULATION ········· 14

3.1 SOCIO-ECONOMIC PROFILE OF PINGXIANG CITY······················································ 14 3.2 SOCIO-ECONOMIC PROFILE OF THE AFFECTED AREAS AND POPULATION ························ 15 3.3 SOCIO-ECONOMIC PROFILE OF AFFECTED HOUSEHOLDS ··········································· 15 3.3.1 Sample selection ··················································································· 15 3.3.2 Demographic Features of Affected Population ·············································· 15 3.3.3 Land Use ····························································································· 17 3.3.4 Economic Status of Households ································································ 17 3.3.5 Gender Perspectives on Resettlement ························································ 19

4 PUBLIC PARTICIPATION AND INFORMATION PUBLICITY ···································· 21

4.1 PUBLIC PARTICIPATION STRATEGY ····································································· 21 4.2 METHODS AND MEASURES OF PUBLIC PARTICIPATION ·············································· 21 4.3 PUBLIC PARTICIPATION DURING RP PREPARATION ·················································· 21 4.5 INFORMATION DISCLOSURE ·············································································· 27 4.5.1 Resettlement Information Brochure ···························································· 27 4.5.2 Disclosure of RP ···················································································· 27 4.6 PUBLIC PARTICIPATION PLAN DURING RP IMPLEMENTATION ······································· 27

5 APPEALS AND GRIEVANCES PROCEDURES ····················································· 29

6 LEGAL FRAMEWORK AND POLICIES ································································ 31

6.1 APPLICABLE LAWS, REGULATIONS AND POLICIES FOR LAR ········································ 31 6.2 ADB INVOLUNTARY RESETTLEMENT POLICY ·························································· 32 6.3 RELATED LAWS AND REGULATION OF THE PEOPLE’S REPUBLIC OF CHINA ······················· 34 6.3.1 Land Administration Law of the People's Republic of China ····························· 34 6.3.2 State Council Decision to Deepen Reform and Strictly Enforce Land Administration, (GF[2004]28) 35 6.3.3 Implementation Method of GZAR for Land Administration Law ······················· 36 6.3.4 Circular of Pingxiang Municipality on Methods for Compensation and Resettlement for Acquisition of Collective Land and House Moving in Pingxiang City ············································ 41 6.4 DIFFERENCES IN POLICIES BETWEEN ADB AND CHINA ·············································· 43 6.5 COMPENSATION STANDARDS AND PRINCIPLES ······················································· 45 6.5.1 Compensation Eligibility ·········································································· 45 6.5.2 Compensation Principles ········································································· 45 6.5.3 Compensation Standards for Permanent LA ············································· 45 6.5.4 Compensation Standards for Temporary Land Occupation ························ 46 6.5.5 Compensation Standards for Ground Attachments and Infrastructures ·············· 47

7 ENTITLEMENTS MATRIX ·············································································· 51

8 RESETTLEMENT AND RESTORATION PLAN ···················································· 53

8.1 OBJECTIVES AND PRINCIPLES OF RESETTLEMENT PLAN ············································ 53 8.2 COMPENSATION AND REHABILITATION RESETTLEMENT PLAN ······································ 53 8.2.1 Resettlement Plan for Land Loss AFs ························································· 53 8.2.2 Job Opportunities of the Project ·························································· 56 8.2.3 Skills Training to the APs····································································· 56 8.2.4 Social Insurances ·············································································· 57 8.2.5 Restoration plan for ground attachments and infrastructures ··························· 58

9 BUDGET ········································································································ 60

9.1 COMPENSATION AND RESETTLEMENT COSTS ······················································ 60 9.2 ANNUAL BUDGET ··························································································· 61 9.3 CASH FLOW ································································································· 62

10 IMPLEMENTATION PLAN ················································································ 63

11 INSTITUTIONAL ESTABLISHMENT AND CAPACITY BUILDING ···························· 64

11.1 ESTABLISHMENT OF PROJECT RESETTLEMENT ORGANIZATIONS ······························ 64 11.2 RESPONSIBILITIES OF RESETTLEMENT INSTITUTIONS ·········································· 65 11.3 INSTITUTIONAL CAPACITY BUILDING ··································································· 67 11.3.1 Capacity of Evaluation Agency ································································ 67 11.3.2 Institutional Capacity Building ······························································ 68

12 MONITORING, EVALUATION AND REPORTING ················································· 69

12.1 INTERNAL MONITORING ··············································································· 69 12.2 EXTERNAL MONITORING AND EVALUATION ························································ 70 12.2.1 Objectives and Requirement of Monitoring and Evaluation ···························· 70 12.2.2 Methodology ······················································································· 72 12.2.3 Main Tasks······················································································ 72 12.3 REPORTING REQUIREMENTS ··········································································· 72

APPENDIX 1: RESETTLEMENT INFORMATION BOOKLET ····································· 74

1 INTRODUCTION ······························································································ 74 2 LAND ACQUISITION AND RESETTLEMENT IMPACTS ··················································· 74 3 GRIEVANCE PROCEDURE ··············································································· 77 4 LEGAL FRAMEWORK AND POLICIES ····································································· 78 4.1 Compensation Eligibility and Principles ···················································· 79 4.2 Compensation Standards and Entitlements ················································ 80 5 RESETTLEMENT AND RESTORATION PLAN····························································· 82 6 COST ESTIMATES ·························································································· 82

Abbreviation & Unit of Measurement ADB Asian Development Bank AFs Affecte Families APs Affected Persons DI Design Institute DMS Detail Measurement Survey EA Executive Agency PLRB Pingxiang Land Resources Bureau PMG Pingxiang Municipal Government PPMO Pingxiang Project Management Office FSR Feasibility Study Report GDP Gross Domestic Product GZAR Guangxi Zhuang Autonomous Region HHs Households IA Implementation Agency MA Monitoring Agency LA Land Acquisition LAR Land Acquisition and Resettlement LRB Land Resources Bureau M&E Monitoring and Evaluation MLG Minimum Living Guarantee OP Operation Procedure PLG Project Leading Group PMO Project Management Office PPTA Project Preparation Technical Assistance PRC The People’s Republic of China RC Residents' Committee RIB Resettlement Information Brochure RO Resettlement Office ROW Right-of- Way RP Resettlement Plan S&T Science & Technology TOR Terms of Reference US$ US Dollars WF Women’s Federation km2 Square Kilometers % Percentage mu Chinese land measuring unit, 1 mu = 1/15 ha. (1 ha.=15 mu) CNY Chinese Currency

Executive Summary

1. The Phase-I of Connectivity Project in Pingxiang Sino-Vietnam Cross-Border Economic Cooperation Zone is located in the southeast of Pingxiang City, starting at K0 + 000 from Puzhai Avenue nearby Busha Village of Pingxiang City, about 700m from S325 highway to the east. The road stretches from the starting point to Nonghuai along X466 county road, and ends at Nonghuai Check Station at K2 + +550. The total length of the main road is 2.55 km, and the total length of the branch road is 0.273 km, totally 2.823 km. The Implementation Agency is Pingxiang Urban Construction Investment Company Ltd.

2. According to the preliminary design1 approved on May 23, 2018 and the results of detailed measurement survey (DMS) conducted by the land resources departments during September to November 2018, the total land for Phase-I of Connectivity Project in Pingxiang Sino-Vietnam Cross-Border Economic Cooperation Zone is 166.06 mu, including 8.37 mu of the existing old road and 23 mu of forest land from Kafeng Village acquired in 2007 (Land compensation has been paid to APs in accordance with the PRC’s land law and local regulations, no pending issues is identified). The project still needs to acquire 134.69 mu of collective land from Kafeng Village, including 7.68 mu of dry land, 56.80 mu of orchard land and 70.21 mu of forest land. The permanent land acquisition will affect 36 HHs and 180 persons. For the purpose of road diversion, construction site and material stacking etc. the Project needs to occupy 55 mu of forest land temporarily, totally affecting 11 households with 56 persons (including 9 households also affected by permanent land acquisition). The affected ground attachments include scattered fruit trees and graves, approximately 140 fruit trees and 11 graves. The infrastructures involved include high-voltage power line, electric poles, communication cables and water supply pipelines etc., respectively 1500m of two-circuit 10KV power line, 12 electric poles, 1500m of communication cables, 4 communication poles, 1000m of water-supply pipes.

3. The Project will affect 38 households or 194 persons due to permanent land acquisition, temporary land occupation, and ground attachments. There are no vulnerable groups and ethnic minorities among the affected households.

4. In order to minimize the land acquisition and resettlement, during the stages feasibility study and preliminary design, the resettlement consulting agency - Guangxi Guoye Project Management Consultation Company Ltd. has kept close consultation with the Design Institute (DI) - Guangxi Forestry Survey and Design Institute, the Implementing Agency (IA), the local officials and the Villagers’ Committee of Kafeng Village to optimize the engineering design.

5. The standards for permanent land acquisition are based on the following documents: Land Administration Law of the People's Republic of China (revised in 2004), Decision of the State Council on Deepening Reform and Strengthening Land Administration (October 2004), Land Administration Regulations of Guangxi Zhuang Autonomous Region, Circular of Pingxiang Municipality on Methods

1 According to project construction procedures of China, the design of construction drawings (final design) will be followed with preliminary design. However, when preliminary design is completed, the final scope of LAR will be determined. Therefore, the DMS of LAR can be carried out. 1 for Compensation and Resettlement for Acquisition of Collective Land. The compensation standard for acquisition of dry land/ garden land/forest land is RMB 38250/mu, RMB 39702/mu, and RMB 20046/mu respectively.

6. .The APs have been notified about the key elements of the RP, including the project information, LAR impacts, laws, regulations and compensation, livelihood and income rehabilitation plan, and implementation schedule. During the consultation meetings, the majority of the affected families request that if their land has to be acquired, they request to get fair and timely compensation, employment opportunities, and children’s education. The APs consider that they are less concerned on the loss of their lands because the earnings from land are limited and would have limited impacts on the family incomes. The APs would like to use compensation payment to do border businesses or get some training to be employed in enterprises and institutions. They also wish the Project could be constructed as early as possible and they could get compensation timely. By the way, road construction will also provide more convenience in connectivity with Vietnam and doing border business. The collective reserved land to be acquired is orchard land and forest land that are in the deserted condition, and so the earnings from the orchard land and forest land could be nearly ignored. The amount of compensation for the village collective can be used to improve the production and living facilities of the village such as canal, road, water supply etc. All of these concerns raised by the villagers have been incorporated in the RP and the resettlement implementation scheme.

7. The updated RP will be disclosed to the APs in August 2019. The Pingxiang PMO and IA will be responsible for supervising implementation, continuing public consultation, monitoring progress and responding to grievances. The grievance address procedures have been well established and details are included in the RP and Resettlement Information Booklets.

8. The people who have permanently lost their land will get land compensation, resettlement subsidies and crops compensation. The compensation will be paid to the affected villagers or the village committe in cash. The PMO, IA, RO and local government will provide necessary assistance during LAR implementation. The economic restoration measures include: (i) During the construction period, 30 job opportunities will be provided to the APs each year with income earnings over RMB 2000 per month. During the operation period, 10 permanent jobs will be provided in priority to the APs each year. (ii) Provision of technical training to the APs to increase their skills to be employed in institutions, enterprises and businesses. (iii) Provision of the social assurance such as endowment subsidies or medical assistance to the land-lost farmers. For the APs who will lose their land temporarily, crops compensation will be paid to the affected individuals in cash, and after completion of construction, the occupied land will be restored to the status and quality as of those before land occupation.

9. In the prices of 2019, the cost estimate for land acquisition and resettlement is RMB 7.2075 million, including compensation for permanent land acquisition, relevant taxes, M&E, other costs and contingency. The signing of land acquisition agreement and payment of compensation money will be conducted during August - November, 2019.

10. A community based grievance address procedures has been well established and explanations are included in the RPs and the Resettlement Information Booklet. The internal and external monitoring

of the RP implementation will be conducted to ensure successful implementation of the RP. The monitoring methodologies are specified in the RP. Internal monitoring and monitoring will be conducted by the IA to ensure compliance with the provisions of the RP. The PPMO and the IA have agreed to a set of monitoring milestones with ADB to ensure timely and effective implementation of resettlement activities. A monitoring agency under contract to the PMO will carry out external monitoring and evaluation. The external monitoring reports will be submitted on semi-annual basis during implementation period and on annual basis after completion of resettlement. These reports will be submitted to ADB, the PPMO and the IA, and will be uploaded to the ADB website.

1 Brief Introduction

1.1 Background

1. The Phase-I of Connectivity Project in Pingxiang Sino-Vietnam Cross-Border Economic Cooperation Zone (Connectivity Project) is located in Kafeng Village of Pingxiang City. 2. Pingxiang City is in the multi-cooperative juncture of the China-ASEAN Free Trade Area, the Pan-Beibu Gulf Economic Corporation Zone and the GMS. It is about only 170km respectively to Hanoi capital city of Vietnam and Nanning capital city of GZAR. The Xiang-Gui Railway, the Nanning - Youyiguan Expressway, the national highway G322 and the provincial highway S325 run through the city and further connect to the railway and highway of Vietnam. Pingxiang is also the key city on the Nanning - Singapore Economic Corridor, the important inland transportation pivot to the ASEAN countries and the most convenient passage to the ASEAN countries in China. 3. Currently, the inter-connectivity has become the development trend of times and the common need of all countries of the world, whereas the infrastructure construction is the basis and the priority. According to the China-ASEAN Connectivity Master Plan, the China-ASEAN Transportation Cooperation Strategic Plan, the “13th Five-Year Plan” general transportation target of Pingxiang Transportation Master Plan, as well as the Government Work Plan for 2016, Pingxiang City will take well advantage of the unique locational benefits and the historical development opportunities to improve the connectivity infrastructure, establish and integrate connectivity network and accelerate the construction of the China-ASEAN international inland passage. All these have become the imperative needs and the inevitable choices for Pingxiang to further strengthen the border development and cross-border cooperation, upgrade the opening economy and construct the ASEAN oriented port city.

1.2 Project Description

4. The Phase-I of Connectivity Project in Pingxiang Sino-Vietnam Cross-Border Economic Cooperation Zone is located in the southeast of Pingxiang City, starting at K0 + 000 from Puzhai Avenue nearby Busha Village of Pingxiang City, about 700m from S325 highway to the east. The road stretches from the starting point to Nonghuai along X466 county road, and ends at Nonghuai Check Station at K2 + +550. The total length of the main road is 2.55 km, and the total length of the branch road is 0.273 km, totally 2.823 km. The major control points are the starting point and the ending point. The road direction is from north to south. The whole line is designed according to the Class-II highway standard, with designed speed 40km/hr, 16 m in width of subgrade, 4x3.5+0.5 m of pavement carriageway. For the branch line, the designed speed is 30km/hr., with 8.5 m in width of subgrade and is 8.5 m and 2x3.75m of pavement carriageway. The pavement of the whole line adopts cement concrete, with the design load capacity of Class-1 for highway. The design flood control capacities are 1/10 for bridge, 1/50 for

2. Resettlement Impacts culverts and subgrade. Other technical parameters are in compliance with Technical Standard of Highway Engineering (JTGB01-2014). 5. Compared with the feasibility study, the construction contents have been adjusted. The main reason for the design adjustment was that, the FSR design was to directly connect the main road to Puzhai Avenue, which would lead to traffic jam and safety risk at Puzhai junction. Such was also not complying with the urban planning of Pingxiang City, and which would also need to demolish houses of three households within the design ROW. During the appraisal meeting for the preliminary design, it was proposed that the main line should connect with the existing X466 highway and the design standard should remain unchanged. And, some section of the previous main line (K0+000 - K0+271) was revised as the branch line, and the design was changed from bi-directional 4-lane with design speed 40km/hr and 16m in width of subgrade to bi-directional 2-lane with design speed 30km/hr and 8.5m in width of subgrade. The design revision will relieve the traffic tense, eliminate the safety risk and conform to the urban planning of Pingxiang City. In addition, it will also avoid demolition of houses. 6. The existing road from Kafeng to Nonghuai that connects Coc Nam Port of Vietnam has been serious damaged and the running conditions are very bad, which needs improvement urgently, as shown in Figure 1-1.

Figure 1-1 Conditions of the Existing Road

7. After completion of the Project, the traffic capacity of the X466 county road will be greatly upgraded to connect Nonghuai Border Trade Area with the villages of Kafeng, Nonghuai etc. and the S325 highway. Kafeng - Nonghuai road will be upgraded to Grade-II highway, and the road conditions to Nonghuai Border Trade Area will be improved, and thus facilitate the economic development of Pingxiang City. 8. The Project will provide convenient transport conditions for the local people, further improve the Sino-Vietnam corridors for transportation, logistics and economic development, strengthen the connectivity of Sino-Vietnam Cross-Border Economic Cooperation Zone and the connection between the urban downtown areas and the border trading points. In addition, the Project will also facilitate the connection between Nonghuai and the outside trunk highway network, help

5 forming the east-west and south-north axial economic development and promote the road-side development of border trading, industry and tourism (as shown in Figure 1-2).

Figure 1-2 Plan View of Phase-I of Connectivity Project in Pingxiang Sino-Vietnam Cross-Border Economic Cooperation Zone

1.3 Project institutions and investment

9. The IA of the project is Pingxiang Urban Construction Investment Company Ltd. 10. The total investment of the Project is RMB 126.278634 million, including RMB 95.872222 million of cost for building and installation, RMB 0.013019 million of cost for equipment and utilities, RMB 26.076073 million of cost of charges and RMB 0.7015 million of contingency. 11. The Project is scheduled to be started in November 2019 and completed in April 2021, the construction period is 18 months.

1.4 Impacts mitigating measures

12. To avoid and minimize the LAR impacts, alternatives have been carefully reviewed in terms of technical, economic, financial, environmental as well as LAR aspect, and the optimal options have been adopted for the Project. By taking into consideration of reducing LAR impacts and property losses, the following measures shall be taken: (i) strictly control the scope of land acquisition through coordinated surveying and mapping; (ii) avoid agricultural land, the intensive resident area, drinking water resources protection area, forest protection area and forest biological environment protection area etc. as much as possible.

2. Resettlement Impacts

13. In the stage of planning and design, the PMO requires that the DI should optimize the design by taking into consideration of the impacts of the project construction on the social economy. Minimizing land acquisition and resettlement should be a critical factor in alternative analysis. For example, in the original design, the road was design to stretch from the starting point K0+000 to Nonghuai along X466 county road, and ends at Nonghuai Check Station at K2 + +689.403, totally 2.668km. And, the project needs to demolish 266.8 m2 of rural residential houses. In order to avoid demolition impacts, the revised main line connects the existing X466 highway and the design standards remain unchanged. And, some section of the previous main line (K0+000 - K0+271) is revised as the branch line, and the design is changed from bi-directional 4-lane to bi-directional 2-lane.

2 Land Acquisition and Resettlement Impacts

2.1 Methods for impacts evaluation

14. In order to update the resettlement plan for the Project, in January 2019, under the organization and assistance of the PMO and IA, the resettlement specialist responsible for RP updating consulted and discussed with the staff of Pingxiang Land Resources Bureau who are responsible for the land acquisition and demolition of the Project. At the same time, the resettlement specialists started site survey and interviews. 15. During October - November 2018, detailed measurement survey for the Project was conducted by Pingxiang Land Resources Bureau.

2.2 Resettlement Impacts

16. LAR will affect Bushatun, Kafangtun and Nongxiaotun of Kafeng Village. Table 2-1 shows the summary of LAR impacts. 17. Totally, 166.06 mu will be reqired for the Project, including 8.37 mu of the existing old road and 23 mu of forest land from Kafeng Village acquired in 2007. The Project needs to acquire new 134.69 mu of land, inclduing 7.68 mu of dry land, 56.9 mu of orchard land, 70.21 mu of forest land, affecting 36 households with 180 persons. The project needs to acquire 55 mu of temporary land occupation, affecting 11 households with 56 persons. Relevant ground attachments and infrastructures are also affected, mainly 140 fruit trees, 11 graves, 1500m of 2-circuit 10KV power lines, 12 electric poles, 1500m of tele-communication optical fiber cable, 4 tele-communication poles and 1000m of tap water pipelines. 18. There are totally 38 households with 194 persons to be affected by the Project. No vulnerable groups and ethnic minorities were identified.

2. Resettlement Impacts

Table 2-1 Summary Land Acquisition and Resettlement Impacts Temporary land Permanent land acquisition occupation1 Total AFs Adminis Total Numbe Total Number Numbe trative area Land category (mu) No. of r of area No. of of No. of r of village Affecte Affecte Affecte Affecte Affecte Affecte Orcha d d d d d d Dry rd Fores Househ Person Househ Person Househ Person (mu) land land t land olds. s (mu) olds. s olds. s Kafeng Village 134.69 7.68 56.80 70.21 36 180 55.00 11 56 38 194 Total 134.69 7.68 56.80 70.21 36 180 55.00 11 56 38 194 Notes: Of the total households affected by temporary land occupation, 9 families are also affected by permanent land acquisition at the same time.

2.2.1 Permanent Land Acquisition

19. The Project needs to acquire 134.69 mu of collective land from Kafeng Village, including 7.68 mu of dry land, 56.80 mu of orchard land and 70.21 mu of forest land. Among the 134.69 mu of acquired land, 46.51 mu of land have been contracted to the individual villagers, affecting 36 households with 180 persons; and 88.17 mu of land belong to the village collective, mostly of orchard land and forest land. Table 2-2 shows the permanent LA impacts. Figure 2-1 shows the land form of the project areas.

Table 2-2 Permanent Land Acquisition Impacts Land Entitlements Affected Permanent land Land category (mu) (mu) village acquisition Orchard Forest Village Affected team Total area (mu) Dry land land land Individuals Collective Nos of AFs Population Busha Tun 30.22 7.68 18.92 3.62 23.50 6.72 17 85 Kafang 37.88 57.29 Tun 95.17 23.02 72.15 19 95 Nongraotu 5.00 5.00 5.00 n Qulitun 4.30 4.30 4.30 total 134.69 7.68 56.80 70.21 46.51 88.17 36 180 .

Figure 2-1 Land of Project Areas

2.2.2 Temporary Land Occupation

20. The Project requires 55 mu of temporary land occupation (as shown in Table 2-3). Table 2-3 Impacts of Temporary Land Occupation Total area of temporary land Land category (mu) Administrative Affected Nos of AFs occupation of collective land Forest village Population Dry land (mu) land Kafeng Village 11 56 55 0 55 Total 11 56 55 0 55 Notes: Of the total households affected by temporary land occupation, 9 families are also affected by permanent land acquisition at the same time.

2.2.3 Ground Attachments and Infrastructures

21. Some ground attachments and infrastructures will be affected.Details are shown in Table 2-5. Table 2-5 Affected Ground Attachments

Name of ground attachments Unit Impacts Scattered Fruit trees pcs 140 Grave nos 11 2-Circuit 10KV HV electric pole pcs 12 2-Circuit 10KV HV electric wires 1000m 1.5 Tele-communication optical fiber cable 1000m 1.5 Tele-communication pole pcs 4 Tap water pipeline m 1000

2. Resettlement Impacts

2.2.4 Affected Vulnerable Groups

22. The vulnerable groups refer to the most fragile people among all APs who will encounter difficulties in coping with changes during project construction. The vulnerable groups are classified into the following types: ● The widowed, the lonely and the elderly people: mainly refer to those elderly over aged 65 who are without spouse or economic sources. ● Single parent family: single parent family with juveniles. ● Orphans: Those losing parents below aged 16 ● Poverty households: households in rural area living under MLG subsidies.In 2018, the rural MLG standard in Pingxiang City was RMB 3700 / year each person. ● Disabled: refer to those being physically disabled or mentally retarded who are unable to work.

23. In February 2019, with the cooperation of the local government and villagers’ representatives, the resettlement specialists responsible for RP updating conducted a survey of the affected households. Among all the families affected by the permanent land acquisition and temporary land occupation, no vulnerable families were identified.

2.3 Evaluation of Land Loss

24. Among the 134.69 mu of acquired land, 88.37 mu belong to the village collective which are deserted orchard land and forest land that have no income. 25. There are totally 46.51 mu of land belonging to the villager individual, including 7.68 mu of dry land, 31.59 mu of orchard land and 7.24 mu of forest land. The average land acquisition among the affected households is 1.29 mu, accounting for 42.5% of the average land area of the affected households (3.0 mu). As the Kafeng Village is dominated by forest land, and the affected households have very little cultivated land. The dry land acquired by the Project is mainly the corn land and vegetable land of the villagers. According to the survey, after the land acquisition, these affected households have no remaining cultivated land, and the loss rate of cultivated land is 100%. 26. From the perspective of income loss, border trade is developed due to the border with Vietnam, and the main incomes of the affected households come from out working or border trade. As for a family of average annual total income of RMB 49,276, only 3.42% share (RMB 1683) of income are from land (mainly from dry land, and almost no earning from orchard land and forest land). So, the income loss from their land accounts for averagely 1.45% of their annual total family income or annual RMB 715 per household. It can be seen that, the loss incurred by land acquisition will account for only very little portion of the total family income. Table 2-7 and Table 2-8 show the land loss analysis respectively for Kafeng Village and AFs. 11

Table 2-7 Permanent Land Loss Analysis for Kafeng Village Before LA Impacts by Project Land loss ratio Administr Total Balance Total Where: Affected Where: ative Populatio Total the APs Total Total Cultivated cultivated Househol Cultivated househol Cultivated village n area (mu) (person) area (mu) area (%) land (%) land (mu) ds (nos) land (mu) ds (nos) land (mu) (person) Kafeng 664 2459 2000 150 36 180 134.69 7.68 6.73 5.12 142.32 Village Grand 664 2459 2000 150 36 180 134.69 7.68 6.73 5.12 142.32 total

Table 2-8 Family Land Acquisition Impacts Analysis S/L Items Kafeng Village 1 Impacts 1 No. of Affected Households. 36 2 Affected agricultural population 180 4 Land acquisition (mu) 134.69 5 Cultivated and area of AFs (mu) 7.68 6 Cultivated land needed by Project (mu) 7.68 7 Average per-capita cultivated land before 0.04 LA (mu) 8 Average per-capita cultivated land after LA 0 (mu) 9 Land loss rate of each family (%) 42.5 10 Cultivated land loss rate each family (%) 100 11 Income loss rate each family (%) 1.45 II Sources of Income 12 Agricultural farming (RMB) 1683 —（%） 3.42 13 Annual total family income 49276 III Land loss proportion - in terms of family 14 < 10% 2 15 > 10% - 30% 1 16 > 30% - 50% 3 17 > 50% - 70% 28 18 > 70% - 90% 2 19 > 90%-100% 20 100%

2. Resettlement Impacts

21 Total 36 IV Land loss proportion - in terms of affected population 22 < 10% 8 23 > 10% -30% 4 24 > 30% - 50% 12 25 > 50%-70% 146 26 > 70% - 90% 10 27 > 90%- 100% 28 100% 29 Total 180 v Income loss proportion - in terms of affected household 30 1% 9 31 > 1%-2% 18 32 > 2%-3% 7 33 > 3%-4% 1 34 > 4%-5% 1 35 Total 36 VI Income loss proportion - in terms of affected household 30 1% 45 31 > 1%-2% 90 32 > 2%-3% 35 33 > 3%-4% 5 34 > 4%-5% 5 35 Total 180

3 Socio-economic Profile of the Affected Areas and Population

3.1 Socio-economic Profile of Pingxiang City

27. Pingxiang City is located in the southern China between E106°41′-106°59′ and N21°57′-22°16′. It is adjacent to Ningming County to the east, Longzhou County to the north and borders with Lang Son Province of Vietnam. The total length of borderline is 97km, enjoying the name of “South Gate” of China. It is about only 170km respectively to Hanoi capital city of Vietnam and Nanning capital city of GZAR, being the nearest city to the ASEAN countries in China. Within its jurisdiction, there are 2 Category-I ports, respectively Youyiguan Port (highway) and Pingxiang Port (railway, 1 Category-II port and 5 border trade markets. It is the city that has the most numerous ports, categories and border ports in Guangxi, serving as the biggest and the most convenient land passage for China to Vietnam and other Southeast Asian countries. Pingxiang was approved by the State Council as the border opening city in June 1992. Puzhai Trade Mall and the border trading point are the biggest border trading areas along the China - Vietnam borderlines. 28. There are four towns under the jurisdiction of Pingxiang City, respectively Pingxiang, Youyi, Xiashi and Shangshi. The total land area is 645 km2. 29. By end of 2017, the total registered population of the city was 114,416, an increase of 372 from the end of the previous year. At the end of the year, the resident population was 119,400, of which the urban population was 85,800. The annual newly-born population was 1913, the birth rate was 16.7‰; the death toll was 737, the mortality rate was 6.5‰; the natural growth rate was 10.2‰. 30. In 2017, the city's gross domestic product (GDP) was RMB 7598.26 million yuan, an increase of 13.2% over the previous year. In terms of industrial sectors, the added value of the primary industry was RMB 556.12 million, an increase of 3.2%; the added value of the secondary industry was RMB 2202.41 million, an increase of 13.3%; the added value of the tertiary industry was RMB 4839.73 million, an increase of 14.4%. The added value of the primary, secondary and tertiary industries accounted for 7.3%, 29.0% and 63.7% of the total GDP respectively, and the contribution rates to economic growth were 2.0%, 28.6% and 69.4% respectively. If computed as per resident population, the average per-capita GDP was RMB 64147. 31. In 2017, the average per capita disposable income of rural residents was RMB 10997, an increase of 11.2% over the previous year; the average per capita disposable income of urban residents was RMB 32124, an increase of 7.9%.

3. Socio-economic Profile of the Affected Areas and Population

3.2 Socio-economic Profile of the Affected Areas and Population

32. Kafeng Village is is located in Youyi Town of Pingxiang City, and the social economic status of the village is shown in Table 3-1. Table 3-1 Economic Status of Affected Villages Indicator Kafeng Village Total Households (nos) 664 Total Population (person) 2459 Female 1286 Agricultural population (person) 2459 Non-agricultural population (person) 0 Total labors (person) 1466 Industrial labor 0 Agricultural labor 140 Tertiary labor 1326 Total land area (mu) 2000 Total cultivate land area (mu) 150 # Paddy field 50 # Dry land 100 Total forest land area (mu) 1646 Total orchard land area (mu) 200 Total fish pond area (mu) 4 Gross production value 650 (RMB10000) Gross agricultural output value 200 (RMB10000) Gross industrial output value 0 (RMB10000) Gross output value for tertiary 450 industry (RMB10000)

3.3 Socio-economic Profile of Affected households

3.3.1 Sample selection 33. In February - April, 2019, with the organization and support of the PMO and Villagers’ Committee, the investigating group carried out the household survey for 38 affected households. The household survey was carried out in questionnaires, and totally 38 valid sheets were returned. 3.3.2 Demographic Features of Affected Population 34. In this survey, a total of 38 households with 194 people were affected, and all the respondents were Han. The detailed demographic features of surveyed the APs are listed in Table 3-2, including age, population composition, education and occupation by gender.

35. Population composition: the total surveyed families and population belong to rural registers, including 46.39% of female. Of the total affected population, labor force accounts for 51.03% of the total population. In terms of age structure, there were 23 persons aged 0-6 years, accounting for 11.86%; 25 persons of aged 7-16 years, accounting for 12.89%; 62 persons of aged 17-35 years, accounting for 31.96%; 48 persons of aged 36-60 years, accounting for 24.74%; 36 persons of aged 61 or above, accounting for 18.56%. Among the affected households in the project areas, the population aged 18-35 years was the largest proportion, followed by a slightly lower proportion of the aged 36-60 years, both accounting for a total of 56.70%. 36. Education background: 46.91% family members were of primary school; 13.92% family members were of secondary school; 15.46% family members were of high school; 4.12% family members were of college or above. 37. Employment characteristics: The employment was characterized by 50.52% of the APs in labor force who engaged in tertiary industry; 15.46% engaged in the agricultural and sideline; 10.31% engaged in institutions and enterprises. Meanwhile they also use low-peak season during agricultural production period to go out for seasonable labors. Women would go out for temporary work and some young people would also go out for seasonable work. Among all the surveyed population, in addition to the regular agricultural work, the people going out for seasonable labors accounted for 23.71%. Table 3-2 Demographic Features of Affected Villages M F Total Indicator Population % Population % Population % Age ≤6 years 13 12.50 10 11.11 23 11.86 7-16 14 13.46 11 12.22 25 12.89 17-35 37 35.58 25 27.78 62 31.96 36-60 26 25.00 22 24.44 48 24.74 Age above 61 14 13.46 22 24.44 36 18.56 Total 104 100 90 100 194 100 Composition Children (below 7 13 12.50 10 11.11 23 11.86 years old) Students 18 17.31 18 20.00 36 18.56 Labor 59 56.73 38 42.22 97 50.00 Retired * 14 13.46 24 26.67 38 19.59 Total 104 100 90 100 194 100 Education Before schooling 20 19.23 18 20.00 38 19.59

3. Socio-economic Profile of the Affected Areas and Population

Not Primary School 42 40.38 49 54.44 91 46.91 e: Secondary School 18 17.31 9 10.00 27 13.92 The High school or 18 17.31 12 13.33 30 15.46 retir occupation school ed College or above 6 5.77 2 2.22 8 4.12 per Total 104 100 90 100 194 100 son Occupation me Agricultural 6 10.17 9 23.68 15 15.46 ans sideline production fem Tertiary industry 29 49.15 20 52.63 49 50.52 ale Enterprises & 8 13.56 2 5.26 10 10.31 age institutional units d 55 Seasonal works in 16 27.12 7 18.42 23 23.71 abo nearby factories or ve, enterprises mal Total 59 100 38 100 97 100 e aged 60 above.

3.3.3 Land Use

38. The affected village has a total of 150 mu cultivated land, 664 households or 2459 persons. The average cultivated land per household is 0.23 mu, with an average of 0.06 mu per capita. The major land of the village are paddy field, forest land and grass land. The agricultural crops are paddy rice. As a result of land acquisition, the affected village will lose 6.73% of the collective land, including 5.12% of the cultivated land. As for the AFs, the land loss rate is 42.5%, including 100% loss of cultivated land.

3.3.4 Economic Status of Households

39. According to the statistics of the surveyed households, in 2018, the average annual income of the affected households was RMB 49,276, and the average per capita annual income was RMB 9652. Among them, 44.9% were from seasonable labor, 3.42% from agricultural and sideline, 12.27% from government subsidies, 41.40% from house rental, small business and other incomes. Among the family income, the male contribution was 57.11% and the female’s was 42.89%. Table 3-3 provides the details of the average income of the AFs by gender.

Table 3-3 Per-Capita Economic Status of Interviewed Families

Annual family average income Total Female Sources of Income Male Income income % % Income % (RMB) (RMB) (RMB) Seasonal work 21146 42.91 12253 43.54 8893 42.08 Agricultural sideline 1683 3.42 563 2.00 1120 5.30 production Government 6047 12.27 3608 12.82 2439 11.54 subsidies Doing small 20400 41.40 11718 41.64 8682 41.08 business or others Grand total 49276 28142 21134

40. The survey showed that, in 2018, among the affected households, the average annual expenditure per capita was RMB 6826, among them, RMB 2024 for food, accounted for 29.7% of the total expenditure; RMB 1576 for residing, accounting for 23.10%; RMB 218, accounting for 3.2%; RMB 542 for daily necessities, accounting for 7.9%; RMB 880 for telecommunication and transport, accounting for 12.9%; RMB 515 for medical care, accounting for 7.5%; and RMB 940 for eduction and cultural entertainment, accounting for 13.80%. Table 3-4 shows the average monthly expenditure of the surveyed families. Table 3-4 Composition of Family Expenditures of Surveyed Families Expenditures Annual average Annual average Total house per-capita expenditure per expenditure (%) expenditure (RMB) household (RMB) Foods 2024 10333 29.7 Residential 1576 8046 23.1 Clothes 218 1113 3.2 Daily necessities 542 2767 7.9 Transportation 880 4493 12.9 and telecommunicati on Education and 940 4799 13.8 entertainment Medical care 515 2629 7.5

3. Socio-economic Profile of the Affected Areas and Population

Others 131 669 1.9 Annual average 6826 34849 100 expenditure per household

3.3.5 Gender Perspectives on Resettlement

41. The affected people are not willing to engage in agricultural production anymore because the border trading can bring about good earnings and the earnings from land have very low proportion in their family incomes. As for the deserted forest land and dryland, they would prefer cash compensation to assist them in doing the tertiary industry such as border trade. They would like to use compensation payment to do some businesses or get some skills training, to purchase transportation vehicles and machinery equipments for construction, to buy insurances, work as seasonable labor, or deposit the compensation payment into bank for future use. Engaging in agricultural production is not their best choice. 42. Of the total the affected households, 46.39% are females, including 38 women labor force. As more men move out of the villages for seasonable labor, there is increasing proportion of women engaging in agricultural and household activities than their male counterparts. As a result, the income made by women from farming and sideline activities is 3.30% higher than males. Thus, the impact of land loss will be slightly higher for women than men. However, the land acquisition also provides opportunities for women to be engaged in non-agricultural activities which are more suitable for them. These job opportunities will reduce womens heavy workload from agricultural farming and make them generate higher income from the development of tertiary industry. As a result, women to be affected are willing to give their land for the construction of the Project. To switch from agricultural activities to service industry, it is important that local government and IA ensure proper training provision to women which could help them to gain the necessary skills and knowledge to operate the business or perform the work. The gender analysis for the affected women is shown in Table 3-5. Table 3-5 Gender Action for Affected Women Gender Issue Benefit / risk Project Impacts Mitigation measures 1. Land, property and Women’s land and Women and men have the same rights Cash compensation rights property rights to land compensation and resettlement. compensation, should be properly The Project has no negative impacts on compensated and women. cannot be deprived.

2. Production and Women are All affected households only lost part of their (1) Women will receive income restoration particularly affected land, which led to the loss of part of their compensation for land after land acquisition. and they receive less income. The use of compensation is acquisition directly; (2) At help. determined by the affected households. least 50% of women will Affected households will continue their receive skills and current livelihoods and occupations. In technical training; and addition to monetary compensation, the (3) At least 30% of project will help affected households to unskilled work on the site restore their income (such as priority will be allocated to employment, technical training, and women during the follow-up support). The project ensures the project construction gender equality in the provision of these period. assistances. 3. Resettlement will Resettlement will The project will help reduce gender increase gender bring about greater inequalities. The affected women can get disparities. burden on women or necessary training which can assist them to will reduce engage in the tertiary services, such as opportunities for household service and border trade etc. restoration and improvement. 4. Community support Break the social This project will not have impacts on network network. community networks. No impacts 5. Impacts on health Resettlement stress No impacts or increase in social can lead to poor problems health or aggravate social problems (violence, AIDs spreading)

4 Public Participation and Information Publicity

4.1 Public Participation Strategy

43. The Project has been emphasizing the full participation of the affected people. The Resettlement Office, along with the consulting team, made use of the opportunities of social and economic survey and social impact assessment to, publicize and introduce the resettlement policies of the Project in an extensive way, thus to solicit the concerns, comments and willingness of the APs of various groups, which have been fully incorporated in the preparation of this RAP. 44. Up to date, a number of public consultations have been conducted covering the aspects of project engineering alignment, amount of land to be acquired, impact survey, land compensation standards, social impacts, resettlement method and willingness, pending issues of the previous project activities. Accordingly, a great quantity of comments and suggestions of the APs have been solicited in the areas of land acquisition and house demolition, compensation cost, public facilities and environment, safety, construction of auxiliary facilities, as well as establishment of the participation mechanism for the APs etc. All these aspects have been reflected in the updated RP. At the next stage, more public consultations will be also conducted through the means of villagers’ consultation meeting, village land acquisition consultation meeting, means and channels of disclosure of resettlement information etc., covering the contents of comments on project construction, means for labor resettlement, restoration of agricultural production, indirect impacts outside the ROW, collection of suggestions and grievances etc.

4.2 Methods and Measures of Public Participation

45. During the preparation of the RP and updated UP, the PPMO, IA and DI have held various meetings with the relevant organizations and RCs’ representatives regarding the land acquisition and resettlement issues and compensation policies. Comments and suggestions have been obtained on the resettlement site, compensation, and livelihood and income rehabilitation plan. 46. During the Project implementation phase, the PPMO, IA and RO will encourage local residents to involve in the land acquisition and livelihood rehabilitation and income restoration process.

4.3 Public Participation during RP Preparation

47. During the RP preparation and updating, all relevant organizations and representatives have participated in the following activities:

(1) During the measurement survey of land acquisition and resettlement in June 2016, all levels of relevant organizations responsible for land acquisition and resettlement and representatives of community residents (including women) have been involved in the survey activities. During the survey, women were basically on the spots, and they have carefully checked and read the index investigation final results. (2) In August 2016, the PPMO, IA and RO organized many meetings with RCs’ cadres, RCs’ representatives and the APs to publicize the existing national, provincial and municipal resettlement policies and ADB Safeguard Policy Statement (2009). Comments have been solicited from the participants for minimizing the project impacts, and formulating the compensation rates, and resettlement and rehabilitation plan. With extensive consultations, the APs who will be affected with different losses all agreed with the cash compensation or replacement resettlement in accordance with the national regulations. (3) During resettlement planning in March 2017, The PPMO, IA, DI, and other relevant organizations visited Kafeng village and the APs, held meetings with participation of the residents to solicit their comments on land acquisition and resettlement, compensation policies and standards, resettlement plan, and restoration measures. These consultation meetings and investigations have generated lots of interests in the resettlement issues and compensation policies, compensation entitlements, and rehabilitation plan. (4) In order to strengthen the project awareness and outreach, the PPMO, IA and resettlement consulting team conducted questionnaire surveys for the affected communities and the APs in March 2017. The surveys have covered all the affected villages and families, and so the results are reliable and reflect the preferences of the APs. (5) Consultation workshops on environment and resettlement were conducted in March 2017. The results of the consultation indicate that, in general, the APs require timely completion of the Project and the compensation should be paid in full and on timely basis. The interviewed people are not willing to engage in agricultural production anymore because the border trading can bring about good earnings. They prefer full cash compensation to assist them in doing the tertiary industry such as border trade, buying vehicles or equipments to participate in the construction, and buying insurances. The surveyed people expressed that they will use the compensation to do some border business or gain some technical skill through training to work in enterprises. The will not engage in agricultural production any more.They want to use the compensation to re-construct their livelihood and earn incomes, for example, (i) to buy social insurances; (ii) to engage in self-employed tertiary business (i.e. Vehicles and equipment rental, transport, repair shop, catering, hotel and tourism etc.); (iii) to make investment on education for their children. They expected to seek employment in other institutions, enterprises and businesses through training. The APs were satisfied with the compensation rate, resettlement and rehabilitation measures. However, the APs also expressed their concerns on fair compensation and timely disbursement of compensation payment.

4 Public Participation and Information Publicity

(5) On August 15, 2018, Pingxiang City Land and Resources Bureau announced the land acquisition pre-announcement on the website of Pingxiang Municipal Government and the bulletin board of the village committee (as Figure 4-1).

Figure 4-1 Land Acquisition pre-announcement

(6) From September to November 2018, the LAR Office of Pingxiang City Land and Resources Bureau conducted detailed measurement survey on the land required by the Project, and on November 27, the results of the DMS were publicized in each affected village groups. The publicity period was 5 days as shown in Figure 4-2. During the publicity period, no grievances and feedbacks were received from the affected people, and the villagers had no objection to the results of the DMS.

Table 4-1 Consultations Conducted

Key issues Location Time Means Participants Discussion contents Suggests of the APs

Brief project Highly support the Project introduction, LAR Kafeng June - July Survey on construction, scope of LAR 40 impacts and Village RC 2016 resettlement impacts, LAR timing, fair and mitigating LAR timely compensation. impacts measures Compensation Agree on compensation standards, standards and restoration August - entitlements, measures. The local government Kafeng September Consultation meeting 50 relocation scheme shall assist tertiary industrial Village RC 2016 and income development, provide restoration employment priority and measures. necessary training. Major contents of RP: LAR impacts, laws, regulations and Timely compensation compensation, disbursement, assistance of the entitlement, Kafeng local government for the APs to March 2017 panel discussion 20 resettlement plan Village RC develop tertiary industry, well and livelihood and established grievance income restoration procedures. plan, grievance procedures, schedule, etc. Kafeng August Pre-announcement Issuance of The APs understand the Village 2018 of land acquisition pre-announcement of contents of the project, the land acquisition scope of land acquisition and the documents for resettlement compensation Kafeng September Detail Measurement Conduct detailed No objection of APs Village - November measurement of the 2018 land required by the Project, and disclose the results of measurement. Kafeng February Questionnaire 38 Socio-economic & Highly support the project Village 2019 willingness survey for construction, no objection to land the affected acquisition. Hope the project can households provide with training and

4 Public Participation and Information Publicity

employment opportunities, and minimize the negative impacts on the living environment.

Figure 4-2 Disclosure of Result of DMS

(7) In January 2019, the RP updating team held a meeting with Pingxiang Land Resources Bureau and Communication Bureau to understand the design change, the impacts and discuss the new socio-economic HH survey; (8) In February 2019, consultation and socio-economic HH survey was conducted with the affected 38 households in Kafeng Village. The contents of survey included the basic information of the affected households, status of land acquisition, status of income and expenditure, attitudes to the project implementation and compensation demand etc. In general, the willingness and desires of the APs can be classified in the following aspects: (i)The APs are generally in support of the project construction. It will facilitate the border trading, and bring more business opportunities and employment opportunities. (ii) Land acquisition. As Kafeng Village has little average per-capita land area, and so the APs are less rely on the land. The incomes of the APs mainly come from out-working and self-employment. Most of the land is used to grow some agricultural products for their own consumption. All the APs agreed to the land acquisition and were satisfied with the compensation standards for land acquisition. They expressed their demands: hope to get technical trainings in e-commerce, trade and engineering, through which they can find jobs in

25 enterprises and commercial organizations, or engage in self-employment to ensure the family's income sources; hope to get employment opportunities during the project construction and implementation. (iii) Reduce the negative impacts of construction on the living environment. The APs hoped that the construction should be arranged in a scientific way to minimize the impacts on traffic and reduce the construction pollution.

Figure 4-2 Photoes of Consultation Meetins

4.4 Women Participation 48. Women in the Project area enjoy equal rights with men and they are playing an important role in project planning, design and implementation. During the field survey, over 50% of women have participated in the survey on land acquisition, house demolition and inventory indexes. Meanwhile, the local government organized the resettlement consultation meeting (at least 50% participants of women) and some representatives of Pingxiang City Women’s Federation were asked to participate in consultation meetings to fully solicit opinions of local

4 Public Participation and Information Publicity women. In general, the local women are quite much concerned about the following issues: fair compensation standards, timely compensation payment, more government assistance and preferential policies during LA.

4.5 Information Disclosure

4.5.1 Resettlement Information Brochure

49. The updated resettlement information brochure will be distributed to the affected households in August 2019. The major parts of RIB are: (i) general description (including purpose and location) of the Project and the socioeconomic benefits; (ii) impacts of the Project; (iii) relevant laws and regulations for LAR; (iv) basic rights and entitlements of the APs; (v) compensation rates; (vi) resettlement and income restoration plan and grievance procedure; and (vii) implementation schedule.

4.5.2 Disclosure of RP

50. The updated RP in Chinese will be given to villagers' committee of Kafeng Village in August 2019.

4.6 Public Participation Plan during RP Implementation

51. In order to address the problems and needs of the APs properly and timely regarding LAR, further consultations with the APs will continue so that all issues may be addressed prior to the start of construction and the implementation of the RP. Meetings will be arranged by the IA for LAR as appropriate. Each AFs will have the opportunity to negotiate the compensation contract, which they will sign with the RO. Table 4-2 lists the plan of public consultation.

Table 4-2 Plan of Public Consultations Targeted Forms of Objectives Time IAs: participa Remarks meeting nts RC APs Publicize RIB, 1. Disclosure of meeting, affected discuss key issues resettlement concerne August IA, Town Gov., RC, by land and the APs' information d group 2019 PLRB acquisitio suggestions and booklet discussio n solicit opinions n Villagers’ All project 2. Release detail meeting participan Meetings with schedule and August and key ts, beneficiaries & the updated RP to the 2019 PPMO, IA, RO group beneficiariAPs APs after ADB’s and discussio es and approval n the APs 3. Monitoring of Househol 2019 – PPMO, IA, Town Gov., Provide suggestions the APs and d Decemb RC, PLRB, external All AHs and update RP beneficiaries interview er 2021 monitor monitoring plan Notes: PLRB = Pingxiang Land Resources Bureau; RO = Resettlement Office; RC =

Residents Committee

5. Appeals and Grievances Procedures

5 Appeals and Grievances Procedures 52. The APs can propose any complaint related to resettlement issues and compensation. In addition to the existing grievance channels of local government, the Project has established a transparent grievance channel. The first step of grievance procedure established for the Project is through the RC, which is the localized grievance mechanism. The legal resolution is the last step proposed for the APs in case that the APs are not satisfied with the decisions made during the whole localized grievance process. The APs will be informed of the above grievance and appeal procedure through public information meetings, the RIB and other medias, so that they can fully understand their rights for grievance and appeal. The resettlement implementation organizations should resolve the grievance for the APs timely. The basic grievance procedures include the following steps. Stage 1: If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the RC in oral or in written form. If an oral appeal is made, the RC will record it on paper and process it. The RC will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice. Stage 2: If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the district government office after receiving the decision. The district government office will reach a decision in two weeks. The AP will be informed of the result via written notice. Stage 3: If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the PPMO and the PLRB after receiving the decision. The PPMO and the PLRB will reach a decision in two weeks. The AP will be informed of the result via written notice. Stage 4: If the aggrieved AP is still not satisfied with the decision of the PPMO and the PLRB, he/she will appeal to the Chongzuo Municipal Land Resources Bureau in two weeks after receiving the decision. Chongzuo Municipal Land Resources Bureau will make a final resolution and inform such to the AP in written notice. Stage 5: If the aggrieved AP is still not satisfied with the decision of the Chongzuo Municipal Land Resources Bureau, he/she will appeal to Guangxi Land Resources Department in two weeks after receiving the decision. Guangxi Land Resources Department will make a final resolution and inform such to the AP in written notice. Stage 6: If the AP is still dissatisfied with the decision of Guangxi Land Resources Department, he/she will appeal to the civil division of a people’s court according to the civil procedural law in two weeks after receiving the decision. The AP will be informed of the result via written notice. 53. The APs can appeal on any aspect related to LAR, including compensation standards and payment etc.

54. The PPMO will engage a monitoring agency to be responsible for all resettlement monitoring and evaluation. During the resettlement, the monitor shall inspect and report on the resettlement processes and the operation of the PPMO and relevant organizations involved in the LAR at different levels and correct any errors made during the resettlement process. 55. The aggrieved person(s) may submit a compliant to the ADB project team to try to solve the problem. If good faith efforts have been made with the ADB project team and the aggrieved persons are still dissatisfied, they can elevate their complaints to the ADB Accountability Mechanism (https://www.adb.org/documents/accountability-mechanism-policy-2012). The Accountability Mechanism provides an independent forum and process where any aggrieved persons can seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures.

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6 Legal Framework and Policies

6.1 Applicable Laws, Regulations and Policies for LAR

56. The People's Republic of China has established and implemented laws, regulations, and policies on resettlement and compensation for many infrastructure projects. This Project will follow the related Chinese laws, national and Guangxi’s regulations and local bylaws and policies, and also include comments and suggestions from the APs, and meanwhile meet the requirements of ADB's Safeguard Policy Statement (2009). The primary objective of the LAR program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project. ⚫ Land Administration Law of the People's Republic of China (amended in 2004); ⚫ State Council Decision to Deepen Reform and Strictly Enforce Land Administration (Ref. GF [2004] 28]; ⚫ Implementation Regulations for Land Administration Law of the People's Republic of China (Revised in July 2014); ⚫ Provisions of the People's Republic of China on Tax on Occupation of Cultivated Land, Decree No. 49 of Ministry of Finance, State Administration for Taxation; ⚫ Method of GZAR on Implementation of Land Administration Law of the People's Republic of China (2001)’ ⚫ Methods of Guangxi Zhuang Autonomous Region Concerning Implementation of Provisions of the People’s Republic of China on Tax on Occupation of Cultivated Land. Decree No.46 of the People’s Government of Guangxi. ⚫ Notice of Human Resources and Social Security Department, Land Resources Administration Department, Finance Department of Guangxi Zhuang Autonomous Region on Implementing Guidelines for Participation of Social Basic Insurance System for Displaced Farmers in Guangxi, (GRSF[2016]46). ⚫ Implementing Guidelines for Participation of Social Basic Insurance System for Displaced Farmers in Guangxi (Notice of Human Resources and Social Security Department, Land Resources Administration Department, Finance Department of Guangxi Zhuang Autonomous Region on Implementing Guidelines for Participation of Social Basic Insurance System for Displaced Farmers in Guangxi, (GRSF[2017]32). ⚫ Circular of Chongzuo Municipal Government on Implementation of A New-Round Unified Standards of Annual Output Values for Land Acquisition (CZBD [2019] 9);

⚫ Circular of Pingxiang Municipality on Adjusting the AAOV of the Acquired Land for 3 Years Preceding Acquisition and the Compensation Standards for Fruit Trees of Different Sizes of the Acquired (occupied) Land (PZF[2016]10); ⚫ Circular of Pingxiang Municipality on Methods for Compensation and Resettlement for Acquisition of Collective Land and House Demolition in Pingxiang City (PZF[2016]11]; ⚫ ADB’s Safeguard Policy Statement, June 2009; ⚫ ADB's Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010)

6.2 ADB Involuntary Resettlement Policy

57. ADB’s Safeguard Policy Statementhas already specified the 3 important elements of the involuntary resettlement: (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation 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 a project involving involuntary resettlement. For any ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the Project cycle, taking into account the following basic principles: (i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with affected persons, host communities, and concerned non-government organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. (Iii) Improve, or at least restore, the livelihoods of all displaced persons through (a) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (b) prompt replacement of assets with access to assets of equal or higher value, (c)

7 权益矩阵 prompt compensation at full replacement cost for assets that cannot be restored, and (d) additional revenues and services through benefit sharing schemes where possible. (iv) Provide physically and economically displaced persons with needed assistance, including the following: (a) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (b) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (c) civic infrastructure and community services, as required. (v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. (vii) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets. (viii) Prepare a resettlement plan elaborating on displaced persons entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (ix) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. (X) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of projects costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (Xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close monitoring throughout project implementation. xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

6.3 Related Laws and Regulation of the People’s Republic of China

58. This Project can be implemented based on the People's Republic of China Land Administration Law (effective as of January 1, 1999 and amended in 2004), Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration issued by State Council, October 2004, Urban Housing Demolition Management Regulations of the People's Republic of China issued in 2001, and Management Law of Urban Real Estate of People's Republic of China (effective as of July 5, 1994) as well as the other relevant laws and regulations.

6.3.1 Land Administration Law of the People's Republic of China

Adopted at the 16th Meeting of the Standing Committee of the Sixth National People's Congress on June 25, 1986, and revised at the 4th Meeting of the Standing Committee of the Ninth National People's Congress on 1 January 998. Revised at the 5th Meeting of the Standing Committee of the Seventh National People's Congress. Article 47: Land requisitioned shall be compensated for on the basis of its original purpose of use. Compensation for acquired cultivated land shall include compensation for land, resettlement subsidies and attachments and young crops on the acquired land. Compensation for acquisition of cultivated land shall be six to ten times the AAOV of the acquired land for three years preceding such acquisition. Resettlement subsidies for acquisition of cultivated land shall be calculated according to the agricultural population to be resettled. The agricultural population to be resettled shall be calculated by dividing the amount of acquired cultivated land by the average amount of the original cultivated land per person of the unit the land of which is acquired. The standard resettlement subsidies to be divided among members of the agricultural population needing resettlement shall be four to six times the AAOV of the acquired cultivated land for three years preceding such acquisition. However, the highest resettlement subsidies for each hectare of the acquired cultivated land shall not exceed fifteen times its AAOV for the three years preceding such acquisition. Standards of land compensation and resettlement subsidies for acquisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for acquisition of cultivated land. Standards for compensation for attachments and young crops on the acquired land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government.

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For acquisition of vegetable plots in city suburbs, the land users shall pay towards a development and construction fund for new vegetable plots in accordance with the relevant regulations of the State. If land compensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of this Article are still insufficient to help the farmers needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people's governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsidies shall not exceed 30 times the AAOV of the acquired land for the three years preceding such acquisition.

6.3.2 State Council Decision to Deepen Reform and Strictly Enforce Land

Administration, (GF[2004]28)

Article 12: Strengthening the Land Acquisition Compensation. Local government at or above county level shall adopt effective measures to ensure the living standards of the rural farmers with requisitioned land be not decreased. It should be ensured that land compensation fees, resettlement subsidies and compensation for ground attachments and standing crops shall be provided in accordance to applicable laws and regulation in full and in time. If the land compensation fees and resettlement subsidies as stipulated by law still cannot be able to maintain the original standards of the land-losing farmers and are not adequate to cover the social insurance costs of the landless farmers, the provincial government shall approve an increase in the resettlement subsidies. If the sum of the land compensation fees and resettlement subsidies has reached the legal upper limit but still cannot maintain the original living standards of the farmers, the local government can provide additional subsidies with the use of revenues from the sales for the use of state land. The People's government of provinces, autonomous region and municipality under the Central Government shall formulate the general AAOV standard or the consolidated regional land price. The compensation price for land acquisition shall be uniformed for the land of same category. The land acquisition cost of national key project shall be fully included in the project budget. The standard of compensation for requisition of land to build large or medium-sized water conservancy or hydroelectric projects and the measures for resettling relocated people shall be prescribed separately by the State Council. Article 13: Properly resettling farmers whose land is acquired. Peoples Governments at the county level and above shall formulate concrete measures to guarantee the long-term livelihood of the farmers whose land is taken. The farmers shall be given stocks for land-taking projects that have stable revenues. Requisition of the collective land within the boundary of urban planning shall include those landless farmers due to land acquisition into the urban employment system, for which, the social security system shall be established. As for the requisition of the collective land outside the urban planning, the local government shall reserve necessary 35 cultivating land within the administrative area, or provide with job arrangement for the displaced farmers. The landless farmers who do not have basic production and living conditions shall be resettled on migratory basis. The labor and social insurance departments shall cooperate with other relevant departments to provide guidance on the establishment of employment training and social insurance program for land-losing farmers.

6.3.3 Implementation Method of GZAR for Land Administration Law

Article 7: The ownership of the state-owned and rural collective-owned land shall be determined by the Land Administration Law, the implementation regulation of the Land Administration Law and other laws and statutes. Article 8: The rural collective-owned land is legally owned by the farmer's collectives and managed and administrated by the village collective economic bodies. If the land in a village is owned by more than two rural collective economic bodies, each of the bodies or village group shall manage and administrate the land. Land already owned by peasant collectives of a township (town) shall be operated and managed by rural collective economic organizations of the township (town). Article 21: Preparation of the yearly schedule of land use shall follow the following principle. (I) strictly follow the overall land use plan and dominate the gross land size used for construction and protect the cultivated land. (II) Guide the land demand by land supply, and rationally and effectively utilize the land. (Ill) Preference of use of land shall be given to the key capital construction projects, and the projects supported by the state industrial policies of the region and state. (IV) Protect and improve the ecological environment and the sustainable use of the land resources. Article 26: The followings shall abide by in reclaiming new cultivated land in same size and quality of the cultivated land requisitioned for non-agricultural construction. (I) Within the land boundary for urban construction defined in the overall land use plan, the local city, county government shall be responsible for organizing reclamation for implementation of the planned urban construction; (II) Within the land boundary for construction of village or town facilities defined in the overall land use plan, the town or township government shall be responsible for organizing the rural collective economic bodies or the land occupying organization to reclamation for implementation of the planned construction of village or town facilities; (iii) For the cultivated land occupation for construction of power generating, transportation, water conservancy, mining and military facilities beyond the land boundary for urban and rural

7 权益矩阵 construction defined in the overall land use plan, the land occupation organization shall be responsible for reclamation of new cultivated land. Article 27: For the cultivated land occupied for non-agricultural construction, the organization or individual shall pay the reclamation fee if he has no means for reclamation. Article 34: The land use organization and individual shall restore the destroyed land due to excavation, collapse and occupation during production and construction according to the State's and Regional stipulations concerning reclamation of land, and in 30 days of completing such reclamation, applies to the land administrative department of local municipality, county (city) government for inspection and acceptance. In case the land use organization or individual who has not means to conduct reclamation or whose such reclamation is not in compliance to the requirement in acceptance, he shall pay to the land administrative department of local municipality, county (city) government the land reclamation fee at a rate of CNY 20-80 per square meter. The said land administrative department shall organize the land reclamation. Article 48: The compensation for the temporary use of agricultural land shall be calculated as per the multiplier of average annual production value for the past three years before the land is temporally used by the years of temporary use. Compensation for the temporary occupation of construction land shall be calculated as per the multiplier of the annual rent of the local similar State-owned land by the years of temporary use. Compensation for the temporary use of the unused land shall be calculated as per 60% of the multiplier of average annual production value of local dry land for the past three years by the years of temporary use. Any damages to the land-attached structures shall be compensated according to the actual conditions. Where the cultivated land is used temporarily, the land user shall resume the planting condition within one year from the date of expiry of the temporary land use. If the planting condition is not restored or the planting condition is less than the original planting condition, it shall pay the cultivated land reclamation fee in accordance with the relevant provisions of the people's government of the autonomous region. Land damage caused by temporary use of other land should be reclaimed or pay land reclamation fee in accordance with the provisions of Article 34 of these measures. Article 51: After the Land acquisition is approved according to the law, the People's governments of the city with district establishment and county shall make announcement of land acquisition in the local township (town) and village whose land proposed to be requisitioned within 15 days after receiving the approval document of land acquisition. The land acquisition announcement should indicate the following items: (1) Land acquisition approving authorities, reference of approval document; (2) The use, scope and area of the land to be acquired; (3) Compensation rates for land acquisition;

(4) Resettlement measures for agricultural population; (5) The institution, targeted people, deadline and documents to be submitted for land acquisition compensation; (6) Prohibited matters; (7) Other matters that need to be announced. After issuing the announcement of land acquisition, the units whose land proposed to be requisitioned and land contracting individuals are not allowed to plant and grow crops or construct buildings and structures on rush. The owners and holders of use rights shall, within the specified period in the notification, make necessary registration for land acquisition compensation in the land administrative department designated by the People's government by presenting the certificates of landownership for land and land attachments. Failing to make land compensation registration within time limit shall be deemed as a waiver of compensation except the delayed registration caused by valid reasons. Article 52: After registration of land acquisition compensation, the land administrative departments of the people’s government of city established with district and county shall, jointly with relevant department, verify the registered issues of land acquisition compensation and draft the scheme for land acquisition compensation and resettlement. The scheme for land acquisition compensation and resettlement shall cover the following contents: (1) Conditions of the land proposed to be acquired. (2) Methods of calculation, objects of payment and means of payment of the land compensation charges, resettlement subsidies, compensation charges for crops and land-attached structures. (3) Resettlement plan for peasants whose land proposed to be acquired. The competent land administrative department the people's government of city established with district and county shall make the land acquisition compensation and resettlement plans known to the general public of the local townships (town) of which land needs to be requisitioned, so that the comments and suggestions from the land-requisitioned units, land contracting runners and other people shall be solicited. The validity of comments solicitation shall be 20 days. Any disputes arising from the plans of land acquisition and resettlement shall be coordinated by the people’s governments of city established with district and county; in case such coordination fails, the disputes shall be adjudicated by the local people’s government that approved the land acquisition. Any disputes on land acquisition compensation and resettlement shall not affect the implementation of the plan for land acquisition, and the units whose land is requisitioned and land contracting runners shall abide by without obstruction. Article 53: The compensation for land acquisition shall observe the following standards.

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(1) Compensation for acquisition of basic farmland shall be ten times the AAOV of the acquired land for three years preceding such acquisition for paddy fields, while nine times for dry land. (2) Compensation for the acquisition of the farmland other than basic farmland shall be nine times the AAOV of the acquired land for three years preceding such acquisition for paddy fields, while seven times for dry land. (3) Compensation for acquisition of vegetable land, fish pond and lotus-root pond shall be eight times the AAOV of the acquired land for three years preceding such acquisition. (4) Compensation for acquisition of protection forest land and special forest land shall be nine times the AAOV of the local dry land for three years preceding such acquisition. (5) Compensation for the acquisition of timbre forest, economic forest and firewood forest shall be, for those with harvest, four to seven times and, for those without harvest, three to four times the AAOV for three years preceding such acquisition. (6) Compensation for acquisition of plant and flower nurseries shall be three to four times of the AAOV for three years preceding such acquisition. (7) Compensation for acquisition of in-turn use land and meadow shall be two to three times the AAOV of local dry land for three years preceding such acquisition. (8) Compensation for the acquisition of unused land, such as barren hills, barren land and barren ditch etc., shall be one to two times the AAOV of local dry land for three years preceding such acquisition. The classification of the land types shall be determined after inventory survey of land utilization. Article 54: The resettlement subsidies for land acquisition shall observe the following standards. (I) The total sum of resettlement subsidies for acquisition of cultivated land shall be respectively of: 1． If the average per capita occupation of cultivated land is over 0.06ha., the subsidies shall be five times the AAOV of three years for the acquired land preceding such acquisition. 2． If the average per capita occupation of cultivated land is over 0.05ha. but less than 0.06ha., the subsidies shall be six times the AAOV of three years for the acquired land preceding such acquisition. 3． If the average per capita occupation of cultivated land is over 0.04ha. but less than 0.05ha., the subsidies shall be eight times the AAOV of three years for the acquired land preceding such acquisition.

4． If the average per capita occupation of cultivated land is over 0.03ha. but less than 0.04ha., the subsidies shall be ten times the AAOV of three years for the acquired land preceding such acquisition. 5． If the average per capita occupation of cultivated land is over 0.025ha. but less than 0.03ha., the subsidies shall be twelve times the AAOV of three years for the acquired land preceding such acquisition. 6． If the average per capita occupation of cultivated land is over 0.02ha. but less than 0.025ha., the subsidies shall be fourteen times the AAOV of three years for the acquired land preceding such acquisition. 7． If the average per capita occupation of cultivated land is less than 0.02ha., the subsidies shall be fifteen times the AAOV of three years for the acquired land preceding such acquisition. (II) Resettlement subsidies for acquisition of other types of agricultural land, such as forest land, meadow and aquatic water surface, shall be three to five times the AAOV of three years preceding such acquisition. No resettlement subsidies shall be made for the acquisition of barren hills, barren land, barren shoal and other lands that are without harvest benefits. Article 55: Compensation for crops and land-attached structures on the acquired land shall follow the following stipulations. (I) Compensation for short-term crops shall be made according to the production value of one-round harvest; compensation for the perennial crops shall be reasonably made according to the planting and growing periods. (II) Forest (fruit, bamboo) feasible for transplantation shall be transplanted, for which, labor charges and seedling losses shall be compensated. Those cannot be transplanted shall be compensated. No compensation will be made for the buildings and structures built on the illegally occupied land, as well as the crops, forest (fruit and bamboo) and the buildings and structures that are planted or constructed on rush after the announcement of land acquisition has been issued. Article 56: As for the legal utilization of the state-owned agricultural, forest, animal husbandry and fishery lands by construction project, the land compensation and resettlement subsidies shall be at 70% of the amount compensated for the acquisition of same-category collectively-owned land; compensation for crops and land-attached structures in this connection shall follow the regulations as designated for acquisition of collectively-owned land. Article 57: The compensation standards for the land acquisition by key infrastructure projects and other key projects, as well as the administrative measures for resettlement land for

7 权益矩阵 poverty-stricken hilly areas shall be formulated by the People’s Government of the Autonomous Region. 6.3.4 Circular of Pingxiang Municipality on Methods for Compensation and Resettlement for Acquisition of Collective Land and House Moving in Pingxiang City Article 6: The Municipal Land and Resources Bureau shall draw up the scope of land acquisition according to the overall plan for land use and the annual plan for land use and urban and rural planning. After the land acquisition institution reports to the Municipal Government for approval according to the proposed land acquisition scope, a pre-announcement of the land acquisition shall be issued to the rural collective economic organization. The land acquisition announcement shall cover the texts of location, range, area, compensation standard and means of resettlement etc. for the land needed to be requisitioned. The validity of pre-announcement of land acquisition shall be one year. Within the validity period of the pre-announcement, any registration of population moving-in or household separation within the range of the proposed land acquisition shall be suspended. No organizations, institutions or individuals shall be allowed to newly construct, expand, rebuild or change any structures and facilities, or to change land use purpose within the range of the proposed land acquisition without prior approval. Any rush planting, growing and constructing shall be prohibited, or otherwise no compensation shall be paid thereto during land acquisition. Article 7: After issuance of the pre-announcement of land acquisition, the land acquisition department shall conduct necessary survey on the land ownership and land category, make records of the measurement, work out the plans for land compensation and resettlement, negotiate the land compensation and resettlement matters etc. with the rural collective organizations which have land to be acquired (the rights holder). The results of survey must be confirmed by the rights holder. If the rights holder refuses to confirm without proper reasons, the land acquisition department should take evidence preservation measures. Article 8: Prior to submitting the land acquisition for approval according to the law, the land acquisition department must notify the rights holder in written. The rights holder shall have the rights to apply for hearing of the land compensation standards and means of resettlement. The rights holder who applies for hearing must follow the stipulated procedures and requirement specified in Regulations of Hearing for Land Resources in organizing the hearing. Article 9: After the land acquisition plan is approved according to law, the Municipal Government, Municipal Land Resources Bureau shall separately issue the announcement of the land acquisition plan and the announcement of the compensation and resettlement plan. In case that the compensation and resettlement agreement is reached before the announcement of the land acquisition plan, the land acquisition plan and the compensation and resettlement plan may be announced together. Article 10: The rights holder who has any objection to the compensation and resettlement plan shall submit a written application to the land acquisition department within 5 working days 41 from the date of the announcement. If the conditions for hearing are met, the land acquisition department shall hold a hearing. If there is no objection to the compensation and resettlement plan, the land acquisition department shall calculate the compensation amount according to the land acquisition compensation and resettlement plan and this Circular and make necessary payment. Article 11: Any disputes of the rights holder arising from the plans of land acquisition and resettlement or failing to sign land compensation agreement shall be coordinated by the Municipal Government; in case such coordination fails, the disputes shall be adjudicated by the government that approves the land acquisition. Any disputes on land acquisition compensation and resettlement shall not affect the implementation of the plan for land acquisition, and the units whose land is requisitioned and land contracting runners shall abide by without obstruction. Article 12: The land acquisition department shall submit the compensation and resettlement plan to the Municipal Government for approval according to the regulations. If the negotiation still fails 20 days after approval of the compensation and resettlement plan by the Municipal Government, the municipal land administrative department shall issue a notice to the rights holder to hand over the land within a time limit. Article 13: If the rights holder refuses to hand over the land or refuses to relocate within the time limit, the municipal land administrative department shall apply for the withdrawal and retaining of the relevant compensation and resettlement expenses according to law. The municipal government may take corresponding measures, or the municipal land administrative department shall apply to the people's court for compulsory execution. Article 14: Compensation for land acquisition shall include land compensation, resettlement subsidies as well as compensation for standing crops and land-attached structures. The compensations for land acquisition shall apply the highest multipliers specified in the Provisions of Guangxi Zhuang Autonomous Region on Implementing Land Administration Law of the People's Republic of China , as well based on the AAOV value of the 3 years preceding of the City, Compensation for crops and land-attached structures shall be made in real terms. No resettlement subsidies shall be paid for the acquisition of unused land and rural construction land. Article 15: As for the legal utilization of the state-owned agricultural, forest and fishery lands by construction project, the land compensation and resettlement subsidies shall made according the the compensation standards for acquisition of collective land.

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Article 16: The agricultural population who need to be resettled due to land acquisition must be those registered by the land-requisitioned rural collective economic organization on the day of the announcement of the land acquisition. Article 17: In order to properly solve the problem of social safeguard for the displaced farmers, when the average per-capita cultivated land area of the displaced collective is less than 0.3 mu (including 0.3 mu) after LA, some industrial land shall be reserved to the collective for their commercial development. The reserved commercial land shall adopt 3 mu as the baseline for each collective organization, and plus 4% of the total actual acquired cultivated land. After acquisition of the collective land, when the average per-capita area of cultivated land is less than 0.3 mu (including 0.3 mu), the Municipal Government will provide grains to the displaced people for three consecutive years, i.e. 15Kg/month each person. The Municipal Grains Bureau shall be responsible for handling the relevant food supply procedures for the people who meet the conditions for free transitional rations. The local township government shall assist the Grains Bureau in verifying the eligibility of the relevant people. After land acquisition of the rural collective organization, if the average per capita cultivated land area is less than 0.3 mu (including 0.3 mu), the villagers shall be eligible to participate in the endowment insurance for land-required farmers in the city. Within the jurisdiction of the land-requisitioned villagers' committee, if the average per capita cultivated land area is less than 0.3 mu, the village committee shall reserve 3 mu of land. Article 18: Under the premise of meeting the requirements of urban and rural planning, the commercial land of the village collective shall be used to develop the second and tertiary industries, or be used as the share in form of collective construction land use rights in the joint ventures.

6.4 Differences in Policies between ADB and China

Lack of identification of the poor and vulnerable groups during the screening process Specific to vulnerable households (men, women, ethnic groups), they are identified by the Government as those who belong to the (i) Five-Guarantee program (the elderly, weak, widowed and disabled members who are unable to work and have no means of living, or whose households lack labor) who are being provided with production and living assistance (e.g. food, clothing, fuel, education and burial expenses) and (i) those eligible for the Minimum Living Guarantee System and are provided with living subsidy each month. Furthermore, identification of the poor and vulnerable households is only done during implementation. Those who are not considered as vulnerable groups as per Government definition but may become at risk of being vulnerable or experience hardship due to impacts of LA/HD; i.e., may need special support during the transition period (e.g. during relocation such as provision of labor, transport) will also be identified and will be provided with necessary assistance. 43

During RP updating, no vulnerable groups have been identified.

(ii) Lack of documentation on the consultation and information disclosure activities, and

grievances received

Meetings held at the local levels are often maintained at the local level. Given the roles and responsibilities of the PMO and implementing agencies, meetings and interviews held with the affected households are reflected in the RP and will continue to be documented during RP updating and implementation. The grievance redress will also be documented as part of the monitoring reports. Disclosure of the key information in the RP (and updated RP) will be carried out through the distribution of resettlement information booklets in local language.

(iii) Inadequate social and risk analysis as resettlement planning is focused on loss of land

and impacts on houses

Government-funded projects carry out impact assessment but focused mostly on land acquisition and relocation impacts in general and no impact assessment on the socio-economic conditions of households in particular. For this project, impact assessment was carried out during RP planning through the conduct of socio-economic survey, consultation meetings, inventory of losses. Gender analysis was also carried out. Such measures led to the preparation of project entitlements, relocation, rehabilitation, and gender strategies; and they are reflected in this RP.

(i) Assistance to households who are not eligible for compensation of houses at replacement cost

Based on the Regulations on the Demolition and Compensation of Houses on State-owned Land (2011), the illegal houses and temporary structures which were constructed after the approval period will not be compensated. However, if the APs belong to the vulnerable groups and in need of housing, they will be assisted in securing affordable housing or low-rent housing which is according to the Regulations to Solve the Housing Difficulties for the Low Income HHs issued by State Council [GF 2007, No 24], affordable housing and low-rent housing should be provided to the households who have housing difficulties. The demolished HHs can apply the affordable housing and low-rent housing. Compensation for non-land assets will be at replacement cost and provision of resettlement assistance similar to those who have licensed houses provided that the affected households meet the Project’s cut-off date. During RP preparation, there are no houses identified as illegal houses.

(v) Inadequate monitoring and reporting arrangements

Audit monitoring (focused on resettlement funds) are done but not on a regular basis.

7 权益矩阵

Internal and external resettlement monitoring systems have been established for this Project.

6.5 Compensation Standards and Principles

6.5.1 Compensation Eligibility

59. The cut-off date for the compensation was August 15, 2018, the date of issuance of the announcement on land acquisition by Pingxiang Municipal Government. Any newly cultivated land, or planting of crops or trees, or structures built after the cut-off date determined by the local government will not be compensated.

6.5.2 Compensation Principles

60. The following measures shall be taken to improve or at least restore the livelihood of the APs through: (i) Land-based resettlement strategies shall be adopted when the APs are land based where possible, or cash compensation at replacement value for land when the loss of land does not undermine livelihoods; (ii) Prompt replacement of assets with access to assets of equal or higher value for the displaced people. (iii) Prompt compensation at full replacement cost for assets that cannot be restored; and (iv) additional revenues and services through benefit sharing schemes where possible; and Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

6.5.3 Compensation Standards for Permanent LA

1. Resettlement with reserved land and crops compensation. 61. According to the applicable Circular of Pingxiang Municipality on Adjusting the AAOV of the Acquired Land for 3 Years Preceding Acquisition and the Compensation Standards for Fruit Trees of Different Sizes of the Acquired (occupied) Land (PZF[2016]10), Circular of Pingxiang Municipality on Methods for Compensation and Resettlement for Acquisition of Collective Land (PZF[2016]11), the compensations for acquisition of collective land shall consist of land compensation, resettlement allowance, crops compensation and ground attachments compensation. The compensations for land acquisition applied the highest multipliers specified in the Provisions of Guangxi Zhuang Autonomous Region on Implementing Land Administration Law of the People's Republic of China , as well based on the AAOV value of the 3 years preceding of Pingxiang City, 62. It was found by the RP updating specialists that, Chongzuo City had issued the new round of AAOV (2016 - 2018). Accordingly, the AAOV of Youyi Town of Pingxiang City is RMB 1757, and the regional compensation multiplier is 19 times. The standards for land compensation and resettlement subsidies for agricultural land is RMB 33338 /mu. Because the new round 45 standards (2016 - 2018) for land acquisition of Pingxiang City are under preparation and not yet implemented, the standards for this Project still follow the AAOV standards (2012 -2015) and compensation rates of Pingxiang City, as shown in Table 6-2. Land compensation standards in Pingxiang City apply the highest multipliers. Based on the AAOV of Pingxiang City (2012 - 2015), the total land compensation and resettlement subsidies for the acquisition of the dry land is RMB 37400/mu, which is higher than the RMB 33338/mu accordingly specified in Circular of Chongzuo Municipal Government on Implementation of A New-Round Unified Standards of Annual Output Values for Land Acquisition (CZBD [2019] 9). 63. For contracted land, land compensation, resettlement subsidies and crops compensation are directly paid to the affected people. For village owend land, those compensations belonging to the village collective shall be paid to the corresponding village groups. Table 6-1 Compensation Standards for Acquisition of Collective Land

Land Type Annual Average Output Land compensation Resettlement Standing Crops Total Value subsidies Multipliers Amount Multipliers Amount Multipliers Amount

RMB/mu RMB/mu RMB/mu Dry land 1700 7 11900 15 25500 0.5 850 38250

Orchard 3054 7 21378 5 15270 1 3054 39702 land Forest land 1542 7 10794 5 7710 1 1542 20046

6.5.4 Compensation Standards for Temporary Land Occupation

64. The compensation for the standing crops loss of temporary land occupation of the Project is based on the calculation of the average annual output value of last three years, which will be paid to the APs. The land recovery fee will to be paid to the contractors to restore the land to its original condition and keep the same quality as before. The compensation standards are shown in Table 6-3. It should be noted that due to complex of geological conditions to rehabilitate the land into its original condition, the compensation rates for land recovery are higher than usual rates. As the road construction will be carried out section by section, thus temporary land occupation will be taken from one month to three months. The compensation rates to be paid to the farmers cover one year crop loss, which is sufficient to the APs. The land recovery cost is excluded in the RP, but included in the engineering cost of the Project.

7 权益矩阵

Table 6-2 Compensation Standards for Temporary Land Occupation

Temporary land occupation Unit Compensation rate (CNY)

Forest land mu 1542

6.5.5 Compensation Standards for Ground Attachments and Infrastructures 65. All affected ground attachments and infrastructures will be compensated at replacement cost to reflect the current value. Table 6-3 and Table 6-4 are the compensation standards for scattered fruit trees, graves and infrastructures. Table 6-3 Compensation Standards for Scattered Fruit Trees in Pingxiang City

Big Moderate Small Smaller Seedling

2015 2015 2015 2015 2015 aniseed 880 660 385 110 11 Local longan 880 660 330 110 6 Local Litchi 880 660 330 110 6 Transplanted 660 440 220 110 6 longan Transplanted 660 440 220 110 6 litchi pear 330 220 110 55 6 persimmon 440 220 110 55 6 Plum 330 165 88 33 6 Shatian 440 220 110 55 6 pomelo Sanhua plum 330 165 88 33 4 sapota 1100 660 330 110 11 Local mango 660 440 220 110 7 Transplanted 550 330 165 88 7 mango Chinese 660 440 220 110 6 chestnut Orange 550 330 165 55 7 Jackfruit 880 660 220 55 6 Murraya 550 330 165 55 6 euchrestifolia Lemon 440 275 110 55 6 Passion fruit 220 110 55 22 6

Loquat fruit 660 330 165 66 6 Note: hawkthorn 440 275 110 22 6 carambola 330 165 88 22 6 Peach 330 220 110 33 6 Grap 165 110 55 22 6 Plum 330 220 110 33 6 Coffee tree 110 88 55 22 6 jujube tree 275 165 88 22 6 Papaya 55 33 11 5.5 3 wampee fruit 275 176 88 22 7 Banana 44 22 16.5 8.8 3 Peach fruit 110 66 22 11 2 Bamboo (big) 22 16.5 8.8 5.5 2 Bamboo shrub 88 55 22 11 2 Sweet bamboo 110 66 33 11 2 Bead tree 88 66 33 11 2 Fir 110 66 33 11 1 Tung oil tree 330 165 88 11 6 Ginkgo tree 220 132 44 22 6 Roystonea 330 165 77 22 6 regia Morus alba 88 66 33 11 1 L. Maple 110 66 33 11 1 Camellia oil 440 220 110 33 6 Flocculus 440 220 110 33 6 banyan Kapok tree 440 220 110 33 5 Pine 110 88 55 22 2 Eucalyptus 88 55 33 11 2 Acacia 66 44 22 11 2 Sappanwood 110 55 33 11 2 Banyan 440 220 110 33 6 Orange 500 300 150 50 10 Reed Leaf 40 30 20 10 5 Fig 100 50 30 20 10 rose wood 100 30 20 15 10

7 权益矩阵

Compensation for fruit trees are based on the actual site counting, and as per the reasonable number of planting 66 pieces /mu. No compensations for the excessive planting and dead plants. 1. As for the fruit tree, shrub-type fruit trees, such as transplanted longgan, transplanted mango, Shatian pomelo, orange, Sanhua plum, wampee fruit, murraya euchrestifolia, plum, peach fruit, jujuba etc., those of dia. Over 12cm are treated as “big”, dia. 6-12 cm as “moderate”, dia. 3-6 cm as “small”, dia. 2-3cm as “smaller”, and below dia. 2cm as seedling. 2. As for the big and high economic fruit trees such as aniseed, local longan, local mango, jack fruit, olivia tree, chestnut tree, mulberry tree and camellia oil tree etc., Over 15 cm are treated as “big”, dia. 10-15 cm as “moderate” , dia. 6-10 cm as “small”, dia. 2-6cm as “smaller”, and below dia. 2cm as seedling. 3. As for banana tree, those with fruit are treated as “big”, from 2 m to non-fruit as “moderate”, 1 - 2 m as “small”, and below 1 m as seedling. 4. As for pineapple, those growing 1-2 years shall be compensated at RMB 2400 /mu, those growing 3 years at RMB 2000 /mu, and those growing over 4 years at RMB 1000/mu. 5. As for other trees, such as bead tree, fir, tung tree, ginkgo tree, maple, flocculus banyan, kapok tree, pine tree, eucalyptus, acacia and sappanwood tree etc., those of dia. over 30 cm are treated as “big”, dia. 20-30 cm as “moderate” , dia. 12-20 cm as “small”, dia. 5-12 cm as “smaller”, and below dia. 5cm as seedling. 6. As for roystonea regia tree, those of hight over 12 m are treated as “big”, 8-12 m as “moderate” , 4-8 m as “small”, 1-4 m as “smaller”, and below 1 m as seedling. The rates for other ground attachments shall follow Document Ref. GFGG[2005]190. Diameter measurement: shrub-shaped economic fruit trees at 50cm from the ground; high economic fruit trees and other trees at 100cm from the ground; 7. Rail fence shall be compensated as per RMB 3/m. Ancient or ornamental trees such teak tree, agallochum etc. should be arranged for transplanting, and the transplanting fees shall be compensated as per the standard for transplanting rose wood tree. Those of dia. over 12cm are treated as “big”, dia. 6-12 cm as “moderate” , dia. 3-6 cm as “small”, dia. 2-3 cm as “smaller”, and below dia. 2cm as seedling. The seedlings in the nursery shall be compensated at RMB 0.5/piece as transplanting fees. 9. As for the green seedlings of the continuously-planted dragon fruit, those without fruit (1-2 years growing) shall be compensated at RMB 7000/mu, those with fruits (3-4 years growing) at RMB 10000/mu, those of full-production period (over 5 years growing) at RMB 12000/mu, and those scattered planted at RMB 25/piece. The above compensation rates have covered all charges for the cement pole, steel bar and rubber tyre etc..

Table 6-4 Compensation Standards for Graves and Infrastructures Unit Compensation Standard (RMB) Infrastructure and special facilities Electricity pole pcs 150 10KV power line 1000m 110000 Communication cable 1000m 25000 Tele-communication pole pcs 150 2.0 inch water pipe m 10.0 Grave nos 3800

7 权益矩阵

7 Entitlements Matrix 66. From the results of DMS, the major impacts of LAR have been identified, and an Entitlement Matrix has been prepared as a guide to compensation payments. The cut-off date for compensation is August 15, 2018, the date of issuing the pre-announcement of land acquisition, which the Pingxiang Municipal Government has announced on the website of Pingxiang Municipal Government and the bulletin board of the village committee. Illegal land-use, construction of temporary structures will not be compensated after the notification of cut-off date. Table 7-1 shows the entitlement matrix. Table 7-1 Eligibility, Compensation and Entitlement

Eligible people Compensation Policy and Responsible Degree of impacts for compensation Standards Agencies ⚫ The cash compensation for the contracted land shall be paid directly to the affected individuals. The compensation rates for land are: dry land RMB 38250 /mu, orchard land For contracted RMB 39702/mu, forest land 46.51 mu land: 36 RMB20046 /mu, forest land

rural households RMB 20046/mu. The PPMO, with 180 rural ⚫ Land-lost farmers Pingxiang Urban The Project will acquire 134.69 people. (registered population Construction Permanent mu of collective land with land contracting Investment Company land permanently, including 7.68 mu of rights over 16 years Ltd., Youyiguan Town acquisition dry land, 56.80 mu of forest land old) shall be eligible to Government, PLRB, and 70.21 mu of forest land. get average per-capita Kafeng Village RC, pension insurance RO subsidies to pay the basic endowment insurance. ⚫ Skill traing and jobs

Cash compensation shall be paid to the village collective. For 88.17 mu The compensation rates for village owned land land are: dry land RMB 38250 /mu, orchard land RMB 39702/mu, forest land

RMB20046 /mu, forest land RMB 20046/mu.

The AFs shall get cash compensation for crops. Land recovery fee shall be paid to the Contractor. Crops The PPMO, Temporary compensations for the The total area of temporary Pingxiang Urban land 11 households of land-lost farmers: forest land occupation of collective forest Construction occupation 56 people affected RMB 1542 /mu. land by the Project is 55 mu. Investment Company After completion, the Ltd., PLRB, RO temporarily occupied land shall be recovered to the original status and quality by the Contractor. The PPMO, 140 pieces of scattered trees, 11 The APs/owners will get Pingxiang Urban graves, 12 electric poles of 2-circuit cash compensation. Construction Ground 10KV power lines, 1.5 km of Compensation rates are Investment Company attachments and 2-circuit 10KV power lines, 1.5km APs/owners presented in table 6-3 and Ltd., Youyiguan Town infrastructures. of tele-communication optical fiber 6-4. Government, cable, 4 tele-communication poles Kafeng Village RC, and 1000m of tap water pipelines. PLRB, RO

9. Resettlement Cost Estimate

8 Resettlement and Restoration Plan

8.1 Objectives and Principles of Resettlement Plan

67. The overall objectives of the resettlement program are for the affected people to be offered with livelihood opportunities, for the labor force to be resettled properly, and for the living and production conditions of the APs to be improved or at least not worse-off than before the Project. The basic principles of the resettlement and rehabilitation plan are as follows: (1) The compensations include: (i) cash compensation for land-lost families; (ii) provision of the social assurance such as endowment subsidies or medical assistance to the APs; (iii) the proposed resettlement development plan and livelihood restoration plan will provide the following policies: (a) provisions of job and earning opportunities during construction and operation periods; (b) development of self-employed tertiary businesses (i.e. construction machinery equipment rental,transportation, cargo, repair, entertainment, food catering and hotel services, and tourism) ; (c) provision of technical training to the APs to increase their skills to be employed in other institutions and enterprises. (2) Implement the RP properly, comply with related compensation policies, and ensure that the production and living conditions of the affected people are increased or at least restored; (3) The RP should be prepared and implemented in accordance with states land rehabilitation policy, national economic and social development plans. The needs and interests of state, collectives and individuals should be fully and equally taken into consideration; (4) the APs should be consulted for the development of the resettlement plan and for the compensation rates; (5) Women’s rights and interests should be fully taken into consideration of the Project.

8.2 Compensation and Rehabilitation Resettlement Plan

8.2.1 Resettlement Plan for Land Loss AFs

68. A total of 134.69 mu of land will be acquired permanently, and affect 1 administrative village and 4 habitats, totally 36 households or 180 persons, among them, 46.51 mu belong to the individual land, and 88.37 mu to the village collective. The land accounts for 6.73% of the total land area and 5.12% of the cultivated land of Kafeng Village; the required land accounts for 42.5% of the total land area of the affected households. The land belonging to the village collective are mostly of deserted orchard land and forest land that have no earnings. The local people are not relying on the land for their livelihood, and more and more people are engaging

53 in service industry, seasonable labor, and in enterprises. Land re-distribution will not be made after land acquisition. All compensation for land loss will be directly paid to the AFs to be used for livelihood. 69. The overall objective of income restoration plan is to ensure that all the APs losing their means of livelihood to the Project are able to at least maintain their pre-project levels of income and living standards. The income restoration plan shall apply to all affected households. They will lose 42.5% of land and 100% of cultivated land due to construction of the Project. 70. According to the household survey, as for a family of average annual total income of RMB 49276, only 3.42% (RMB 1683) of income are from agricultural farming. It is calculated that the income loss from their land accounts for averagely 1.45% of their annual total family income or annual RMB 715 per household. Table 8-1 shows the income loss analysis. According to the income survey, the APs within the Project area are mainly engaged in tertiary industry and small business. Meanwhile they also do some seasonal labor work during the agricultural leisure season. Major labor forces at the age between 20-50 account for the majority of the APs and all have above secondary school education level. Table 8-1 Income Loss Analysis for AFs Adminis Nos of Total land Loss of Cultivated Annual Annual Income trative AFs area before cultivated land loss household household loss rate village LA (mu) land (mu) rate (%) income before income after LA (%) LA (RMB) (RMB) Kafeng 36 134.69 7.68 100 49276 715 1.45 Village Grand 36 134.69 7.68 100 49276 715 1.45 total

71. Loss of land and working place will not only affect the AFs’ livelihood but also their future employment. The income restoration plan has given consideration to all the APs of the Project. In this Project, there are 36 families or 180 persons to be affected by permanent land acquisition who need the livelihood and income restoration. According to the surveys and consultation, the APs do not want to engage in agricultural activities any more, and would like PMG provide them with employment and technical training opportunities as well as business support.The following income restoration measures will help the APs to increase their income level: (i) provision of technical skill training and employment opportunities, especially for the job requiring large amount of labor forces; (ii) development of service industry, such as construction machinery equipment rental, transportation, food catering service, transportation service in urban districts, taxi service, entertainment service, hotel service, tourism business etc.); (iii) social and medical insurances; and (iv) provision of employment opportunities generated by the construction and operation of the Project.

9. Resettlement Cost Estimate

72. Make a total amount of RMB 3.9663 million of land compensation, resettlement subsidies and crops compensation. Among them, the collective of Kafeng Village will get RMB 2.2628 million, and the 36 affected households will get RMB 1.6935 million. 73. Each affected household will get compensation of RMB 47041 on average, being 65.8 times of the average annual loss. The affected households could use the compensation payment for other tertiary industry development. As a result, the APs will significantly benefit from the land acquisition. According to the survey on the APs, 100% of them are willing to use the compensation for land loss as seed money to develop the tertiary industries such as border trade. Women are more suitable for the above-mentioned employment and income generating opportunities. There are totally 38 female labor force being affected, accounting for 39.17% of the total 97 labor forces. They will benefit the same from the income restoration plan as men. After getting compensation, they will engage in the tertiary industry such as border trade, which is suitable for women. 74. According to the consultation with the APs during the socio-economic survey, among the 36 households affected by permanent land loss and needed to be livelihood restored, 15 families plan to do transport service, 15 families plan to engage in border trade, and 6 families plan to do tourism or related services. The affected families will receive a sum of compensation for land loss, the amount is sufficient for them to start a new business. The APs will use the compensation payment to establish their new business which is expected to take about two to six months. The income of the APs to be generated from the new businesses could be stabilized two months after the opening of the businesses. They will use the majority proportion of their compensation payment to invest in their new businesses and the remaining fund will be used for improving their living conditions, deposit into bank for monthly interest, buying social insurance and circulating fund or for education of their children. Table 8-2 provides the income, compensation received and income restoration measures of the AFs. The 36 affected households will take the income restoration measures listed in Table 8-2.

Table 8-2 Family Income, Compensation and Restoration Measures Administr Current annual Average per-household Restoration measures ative income (RMB) eligible land loss village compensation (RMB) Kafeng 49276 47041 Transport service: 15 families; border Village business: 15 families; tourism or related services: 6 families.

Total 49276 47041

75. Due to the infertile hilly land in the affected area of the Project, plus the prosperous border trade, all the orchard and forest have been deserted, and so the incomes thereof can be almost neglected. The RMB 2.2628 million of compensation for the village collective can be used to

55 offset the annual loss, or be used to improve the production and living facilities of the village such as canal, road, water supply etc., so as to improve the conditions for production and living. 76. It can be seen that, the compensation for the permanent land acquisition can fully offset the land loss. In addition, improvement of the traffic infrastructure will promote the border business, which, in a long run, will facilitate the local economy and increase the income of the local villagers. 77. For the people who will lose their land temporarily, corps compensation will be paid directly to the APs in cash. The land restoring fee will be paid to the contractors. The land will be restored to original condition and keep the same quality as before by the contractors.

8.2.2 Job Opportunities of the Project

78. The Project will further promote the Sino-Vietnam border trading. And the project implementation will also bring about some work opportunities to the local people. The employment priority will be given to the APs. 79. It is expected that the project construction will provide 30 short-term job opportunities. For example, security guard, porter, building labors required by road construction; material transport, sand and stone mining, equipment rental and repair required by road construction etc. The APs will be given these job opportunities in priority by the Project with income earnings over RMB 2000 per month. After completion of the project, the road maintenance will provide 10 permanent jobs each year, and these jobs will be given to the APs in priority to offset their losses caused by the project. During the periods of construction and implementation, at least 30% of non-technical jobs at site will be provided to the female. 80. In addition, the related urban development will also create employment opportunities. The Pingxiang Municipal Government will coordinate with relevant departments, including the owners of the job positions, labor and social security bureau and district government to arrange the APs to be employed for these job positions. 81. The APs can seek some income generation opportunities. Fore example, the APs may lease out spare houses to the construction contractors as temporary office or to the construction workers as residence, or operate grocery stores to sell food, cigarettes and breweries to the construction teams.

8.2.3 Skills Training to the APs

82. In recent years, the rapid economic development of Pingxiang City and the promotions of Sino-Vietnam Pingxiang-DongDang Cross-Border Economic Cooperation Zone will create great job opportunities for Pingxiang City, indicating a great demand for labor force in the tertiary industry.

9. Resettlement Cost Estimate

83. In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the RO and IA will cooperate with the departments of Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the relocated the APs. Technical and management skills training shall be conducted in consistent with the district economic status, requirements of the labor market and the end employers to ensure that the trainings are practical, efficient and targeted. Skills training shall be one of the effective means for restore and increase the income of the APs. 84. Considering the lack of working skills for the major labor force of the affected households, especially women, it should be ensured that each training should have at least 50% of women participants. Upon obtaining working skills after training, the APs may find jobs nearby. Each affected person shall have one chance of receiving the skills training that he / she personally chooses. The female the APs will enjoy the same training budget with the male APs. 85. From August 2019 to April 2021, semi-annual technical training for the affected people will be provided, and the expected number of participants will reach 150 persons. The training will be carried out jointly by the district government, subdistrict committee, women’s federation and vocational education department, and the necessary costs will be from the government financial budget. The trainings will be provided to all labor force of the APs, especially the women. Each training shall have at least 50% of women participants. The training includes: ◆ (1) Cleaning, landscaping, management of parking lot, and others; ◆ (2) Horticulture, sewing and knitting, beauty and hairdressing; ◆ (3) Maintenance and repair of motorcycle, vehicle, and electronic products; ◆ (4) Car decoration, management of cleaning and washing accessories; ◆ (5) Food, catering and hotel services, and home services; and, ◆ (6) Sales of products, border business registration and operation. ◆ (7) Trainings on sales of products, border business registration and e-commence. 8.2.4 Social Insurances 86. In addition to the proposed income restoration measures, the Municipal Government will provide social security system for the APs in terms of social pension insurance, medical insurance etc. to ensure the livelihood of the APs. 87. Endowment insurance for land-required farmers. The Project will expropriate the rural collective land in a unified way, and so the registered population over the age of 16 who have the rights in contracting rural collective land, shall be eligible to get the subsidies of endowment insurance for land-required farmers. Calculated as per the subsidy standards for each land acquisition (60% of the average salary of the on-duty urban workers of the whole area × per-capita average required area (mu) among land-required households), the Project needs acquire 46.51 mu of land from individual farmers, averagely per-capita 0.35 mu (totally 123 persons above aged 16), and the average per-capital annual salary of the on-duty urban workers in 2017 was RMB 66456 /year (data of 2018 unavailable), the eligible persons of over

57 aged 16 who have the rights in contracting the collective land can get mount of RMB 13956 of endowment insurance subsidies each person. Such amount of money will be paid to the individual account of endowment insurance of the APs to pay the basic endowment insurance premium. Those land-required farmers who have got the basic endowment insurance premium, the subsidies shall be paid to the individuals at one time. 88. The APs will be covered by new-type cooperative medical care system. 8.2.5 Restoration plan for ground attachments and infrastructures 89. The affected ground attachments include scattered trees, which will be compensated as per the standards listed in Table 6-4. 90. The graves to be removed by the Project are located on the earth forest slope, mostly of monument grave. According to the local price and the custom of grave-moving, the compensation of RMB 3800 would be good enough to remove a grave. (1) Selection of a new grave site will need RMB 1500 - 2000. (2) After selecting the new site of the grave, they need to ask people to dig graves, and the family will have to prepare the day to prepare wreath, Mingbi etc. and prepare meals dinner to entertain the family and relatives. According to the local prices, the average cost of removing a monument grave is RMB 1800. Details are shown in Table 8-3. 91. During the interviews, the resettlement specialists responsible for RP updating found that, all villages strongly support the project construction and are willing to remove and relocate the graves within the construction area, being satisfied with the compensation standards. Table 8-3 Cost Estimates for Grave Removing Structure Average expenses 1.Labor charges Geomancer 200 Persons of grave digging and bone 300 cleaning New grave construction person 200 2. Materials Cost New monument and carving 500 New urn 100 Minbi, paper belts, joss sticks and 100 candles 3. Other costs 400 Total 1800

9. Resettlement Cost Estimate

92. As for the affected public facilities and special facilities, the demolition unit shall strictly follow the construction drawing and minimize removal. In addition, as for removal of the pipelines, the demolition unit should be re-built first, under the conditions that such re-building and removal will not affect the living of the nearby local people. 93. The owners shall be responsible for reconstruction. The restoration measures for the demolished facilities shall be well planned ahead, and the implementation should be safe, effective, timely and accurate, and minimize the negative impacts on the people nearby.

9 Budget

9.1 Compensation and Resettlement Costs

94. The resettlement costs have been covered by the budget of the Project. The total estimated resettlement costs are RMB 7.2075 million, of which 15% belongs to contingency (physical and price escalation). The estimated costs include compensation for collective land acquisition, compensation for scattered trees, graves, infrastructures and special facilities, other costs, and contingencies. The detailed cost estimates of resettlement are presented in Table 9-1. The summary cost is presented in Table 9-2. Table 9-1 Detail Cost Resettlement Estimates Cost S/L Items Unit Quantity Unit price (RMB) Estimates (RMB) 1 Permanent land acquisition

Collective land in affected 1.1 mu 134.69 3956263.26 areas

1.1.1 Dry land mu 7.68 38250 293760.00 1.1.2 Orchard land mu 56.8 39702 2255073.60 1.1.3 Forest land mu 70.21 20046 1407429.66 2 Temporary land occupation mu 55 167970.00 2.1 Forest land mu 55 3054 167970.00 3 Affected ground attachments and infrastructures. 274957.43 3.1 Fruit trees pcs 140 5.5-880 18257.43 3.2 Grave nos 11 3800 41800.00

3.3 HV electricity pole pcs 12 150 1800.00

3.4 10KV power line 1000m 1.5 110000 165000.00

3.5 Tele-Communication cable 1000m 1.5 25000 37500.00 3.6 Tele-communication pole pcs 4 150 600.00 3.7 2.0 inch water pipe m 1000 10 10000.00 Basic costs for LA and resettlement 4399190.69 Related land taxes 2808281.11 Land acquisition administration 4 2.1% of LAR costs 92383.00 fees 5 M&E costs 1% of LAR costs 43991.91

9. Resettlement Cost Estimate

6 Farmland occupation tax RMB 25 /m2 128000.00

the average salary of the on-duty urban workers of the whole area (RMB Endowment insurance subsidies 7 66456) × 60% × per-capita average required area (0.35 mu) × population 1884027.60 for land-lost farmers of land-required people above aged 16 (135 persons)

8 Contingencies 659878.60 8.1 In-kind contingencies 10% of LAR costs 439919.07 8.2 Prince contingency 5% of LAR costs 219959.53 Total 7207471.80

Table 9-2 Summary of Resettlement Costs

S/L Items of Compensation Cost Estimates (RMB) 1 Permanent land acquisition 3956263.26 2 Temporary land occupation 167970.00 3 Affected ground attachments and infrastructures. 274957.43 4 Land acquisition administration fees 92383.00 5 M&E costs 43991.91 6 Farmland occupation tax 128000.00 7 Endowment insurance subsidies 1884027.60 8 Contingencies 659878.60 9 Total 7207471.80

9.2 Annual Budget

95. According to the Project schedule, the project construction will take about 18 months to complete from November 2019 to April 2021. The estimated cash flows will reach 80% or RMB 5.7660 million in 2019, while 20% or RMB1.4415 million in 2020. Table 9-3 is the annual budget for resettlement costs. Table 9-3 Annual Resettlement Cost Budge (RMB 10000) 2019 2020 Total Budget amount (RMB10000) 576.60 144.15 720.75 Ratio of total budget (%) 80% 20% 100%

9.3 Cash Flow

96. The funds flow is shown in Figure 9-1.

Permanent collective LA Pingxiang Constr.Co. RO APs

Temporary land occu. Pingxiang Constru. Co. RO APs

Ground attachments Pingxiang Contru. Co. RO APs

集体土地的永久征地凭祥市交通局移民办

Infrastructures Pingxiang Contru. Co. RO Employer

Survey & design fee Pingxiang Contru. Co. DI

Management fee Pingxiang Contru. Co. RO

M&E fee Pingxiang Contru. Co. MA

Figure 9-1 Cash Flow

10 征地移民实施计划

10 Implementation Plan 97. After approval of the updated RP by ADB, the compensations for the APs will be started in August 2019, and, the payment of compensation and land reserve will be completed in November 2019 before starting construction. Table 10-1 shows the schedule. Table 10-1 Milestone for LAR Items Resettlement activities Objectives Responsible Agencies date Status 1 Disclosure Land acquisition Completed 1.1 pre-announcement 36 AHs IA, RO August 2018 Disclosure of result of Completed 1.2 DMS 36 AHs IA, RO November 2018 Uploading RP on ADB September 1.3 website ADB 2019 Planned Distribution of RP and Village Planned 1.4 RIB committee/36AHs IA, RO August 2019 2 Agreement 2.1 Sign agreement and Village PMG, Youyi township Planned payment of compensation committee/36AHs government, PLRB, RO, August - RC, PPMO, IA November 2019 Village August 2.2 Restoration plan committee/36AHs PPMO, IA, DI, RO 2019-April 2021 Planned Pingxiang Civil Affairs Implementation of training Bureau, Pingxiang Labor August 2019 - 2.3 program 36AHs Insurance Bureau April 2021 Planned February 2017 – PLG, PPMO, IA, RO, December 3 IA’s capacity PLRB and others -2019 On-going 4 Monitoring and evaluation

Establish internal August 2019 - 4.1 monitoring As per the RP PMO & IA December 2021 Planned Engagement of external September 4.2 monitoring agency PMO 2019 Planned 4.3 Internal Monitoring Report Quarterly PPMO, IA, RO November 2019 November 2019 1st report External Monitoring semi-annual External M&E agency May 2020 2nd report 4.4 Reporting November 2021 3rd report Resettlement Completion 4.5 and Evaluation Report 1 report External M&E agency May 2022 5 Consultative documents IA, RO, RC On-going 6 Appealing documents IA, RO, RC On-going

11 Institutional Establishment and Capacity Building

11.1 Establishment of Project Resettlement Organizations

98. The PMG establish Pingxiang Leading Group (PLG). The Executive Agency is Pingxiang Project Management Office (PPMO). The Project Implementing Agency is Pingxiang Urban Construction Investment Company Ltd. Under the EA, there is a resettlement office responsible for land acquisition and resettlement. Figure 11-1 shows the structure of organization. 99. During the resettlement implementation, the EA plays an important role, while other related departments will be also involved. Table 11-1 shows all these institutions and working staff.

Table 11-1 Resettlement Institutions and Staffing Institution Staffing 15 persons, experienced, government officials, university degree or PLG above 5 persons, experienced, government officials, engineers, university PPMO degree or above 10 persons, experienced, government officials, university degree or PLRB above 6 persons, experienced, government officials, university degree or Youyi township government above Pingxiang Urban Construction 3 persons, personnel of engineering construction and management, Investment Company Ltd. / university degree or above Resettlement institution 6 persons, experienced, government officials & the APs’ Project RO representatives, university degree or above RC 2 RC cadres DI Some intermediate engineers External monitoring agency Some Resettlement specialists

PLG PPMO

PLRB Pingxiang Constru. Co. Youyi town gov Legal adviser DI

Construction Office Finance Dept Office MA

Resettlement Office LA Office

APs Figure 11-1 LAR Implementation Institutional Structure

11.2 Responsibilities of Resettlement Institutions

Table 11-2 Responsible Agencies Institution Responsibilities (1) Project leadership, organizing, coordinating and formulating principles; (2) Inspect RPimplementation; PLG (3) Conduct internal monitoring and review; (4) Make resolution for the issues of LAR. (1) Project general coordination and organization; (2) Coordinate RP preparation and implementation; Pingxiang Project (3) Organize and coordinate RP preparation; Management Office (4) Provide assistance to women; (5) Liaison with ADB, IA and other depts. (1) Apply to PLRB for “Planning Land Use Permit” and “Construction Land Use Permit” (2) Make payment of resettlement subsidies and monitor the usage; Implementing (3) Guide, coordinate and monitor the implementation schedule of RP; Agency (4) Organize and conduct internal monitoring, engage external monitoring agency and coordinate internal and external monitoring; (5) Report the implementation status of LAR and fund utilization to ADB as per 65

schedule. (6) Provide assistance to women; (7) Coordinate and handle with the issues and problems occurred during project implementation; (8) Report the LA and house demolition status to PLG. (1) Organize social and economic survey; (2) Conduct measure survey for LA and demolition; (3) Implement relocation; (4) Formulate the relocation implementation schedule; (5) Assist the local government to sign LAR agreements with the APs; (6) Inspect RP implementation; (7) Manage LAR information; Resettlement Office (8) Provide assistance to women; (9) Provide training for resettle staff; (10) Coordinate and handle with the issues and problems occurred during project implementation; (11) Handle any disputes, grievances or arbitration through coordination; (12) Make resolution for the issues of LAR. (13) Report LAR progress to IA. (1) Implement relevant national policies for LA; (2) Participate in the review and checking of the compensation standards for ground attachments; (3) Handle and approve land acquisition; Pingxiang Land (4) Participate in measurement survey and socio-economic survey; Resources Bureau - (5) Participate in RP preparation; PLRB (6) Issue Planning Land Use Permit and Construction Land Use Permit; . (7) Publicize LA public information; (8) Guide, coordinate and supervise LAR implementation; (9) Coordinate and handle with the issues and problems occurred during project implementation; (1) Implement relevant laws and regulations for LAR; (2) Approve relevant documents for demolition and compensation plan for displaced Pingxiang persons, and issue Structure Demolition Permit; Resettlement Office (3) Register and manage relocating archives; - RO (4) Coordinate, supervise and inspect demolition activities and handle any conflicts thereof; (5) Assist RO to providing training for staff. (1) Provide legal consultation during project implementation; Legal Adviser Office (2) Provide legal aid for the disputes arising from LAR; Township (1) Assist measurement and socio-economic survey; Governments (2) Assist the preparation of RP;

(3) Supervise RC’s implementation of Resettlement and Restoration Plan; (1) Participate in the socio-economic survey and participate in development of RP and restoration plan; (2) Participate in preparing RP and relocation scheme; (3) Organize public consultation and publicize LAR policies; Residents (4) Consult the payment and distribution of compensations; Committee - RC (5) Organize livelihood and income restoration activities in affected villages; (6) Organize the tertiary industrial development. (7) Report to the higher authorities the complaints and suggestions of the APs. (8) Provide assistance to women. (1) Minimize LAR impacts through design optimization; (2) Determine the range of LAR impacts; (3) Conduct measurement and socio-economic survey; Design Institute - DI (4) Assist the preparation of RP; (5) Provide necessary technical assistance to the PPMO and IA during information and data collection and processing; (1) Provide technical assistance for LAR; Monitoring Agency (2) Enforce as monitoring agency to monitor RP implementation and report to the PPMO, IA, RO and ADB.

11.3 Institutional Capacity Building

11.3.1 Capacity of Evaluation Agency

(I) Logistics and hardwares 100. Currently, the IA has set up the Resettlement Section which is equipped with office appliances and tele-communication equipment such as computers etc. , Which include air conditioner, chair, computer, printer, telephone, fax etc.. The daily necessary expanses shall be covered by the daily office fees. The total cost for these office appliances is RMB 30000. (II) Finance 101. During the PPTA, all the expanses were paid by the EA. Regardless of the capacity, lack of funds would certainly affect the institutional establishment during preparation (including FSR and RP preparation). The RP has taken into consideration of this issue, and the resettlement budget has provided adequate management fee. (III) Staff Capabilities 102. During the PPTA stage, the Consultants found that many government officials have rich experiences in dealing with LAR issues and ADB financed project who have participated in relevant trainings on ADB involuntary resettlement policies. However, further training is still needed. 67

11.3.2 Institutional Capacity Building 103. ADB will finance the personnel who provide resettlement trainings for the resettlement staff. The capacity building shall include ADB’s training courses and the site trainings provided by the designated external consultants, which cover the contents of resettlement principle and policy, engineering planning management, plan and design, progress management, financial management, management information system, quality control, monitoring and evaluation, project management etc. 104. In order to improve the staff’s capacities and conduct effective work, the trainings shall be provided to them. The following requirements should be defined. (1) The places for training are recommended outside Pingxiang City, most preferably in the cities that have successful experiences in implementing ADB financed projects, where the learners may acquire the experiences. Such need necessary assistance from ADB. (2) The learners should be those who are temporarily transferred to the resettlement offices, and those officials who participate in the discussion with the PPTA resettlement consultants. (3) The training period shall be from May 2018 to December 2019. On 1 January 2019, during the inception mission, ADB’s staff consultant provided a training to the responsible staff of PMO and PIU. The training included the SPS 2009, establishement of internal monitoring system, documentation of consultation, GRM, etc.

Monitoring, Evaluation and Reporting

12 Monitoring, Evaluation and Reporting

105. The EA will regularly monitor and evaluate the LAR 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 the APs. The monitoring will comprise two components: internal monitoring and external monitoring. Internal monitoring will be mainly conducted by the EZ, and will be overseen by the PLG, EA to ensure that organizations involved in LAR comply with the principles and schedules of the RP. 106. The aim of internal monitoring is to encourage the concerned organizations to carry out good performance while the external monitoring and evaluation will be conducted by a agency periodically on the LAR activities. 107. The scope of monitoring on resettlement will cover data collection, analysis, and the reporting of progress for an internal monitoring while the external monitor will check progress but their main role is to evaluate quality and results of resettlement. 108. Resettlement monitoring will focus on the following two aspects: (1) Progress of disbursement and provision of entitlements to the APs. (2) Comparison of the APs and RC pre and post resettlement socioeconomic situation, particularly livelihood restoration. Background socioeconomic data collected during the inventory and census surveys will be used in this assessment.

12.1 Internal Monitoring

109. Internal monitoring will be undertaken by PLRB and the EA to assure the concerned departments to comply with the RP. Internal monitoring aims to ensure good performance during the resettlement process. 110. The EA will take major responsibility of internal monitoring, covering the APs’ activities, entitlement, advice, grievance, problems, efficiency, timing, budget, etc. 111. Disbursement of entitlements to the APs: compensation, employment, and necessary assistance as specified in the RP. 112. Social adaptability and cohesion: impacts with a gender perspective on the APs and vulnerable groups, public participation, non-governments role, the APs attitudes and opinions after resettlement, number of complaints and appeal procedures, implementation of preferential policies and income restoration measures, and improvements in women’s status. 113. Timing of land acquisition, structure demolition, livelihood and income restoration: selection of relocating house site, disbursement of replacement cost compensation, and updating of resettlement schedule and resettlement budget where required. 69

114. Rehabilitation of community facilities and services: Timely rehabilitation of community facilities and services and ensuring that mitigation measures to minimize impacts are implemented. 115. Public participation and consultation: Involvement of the APs in resettlement implementation as per the public consultation plan outlined in the RP. Review of grievance register and responses to complaints. 116. It is anticipated that internal monitoring report will be brief document reporting on progress to date and identification of issues, how issues were resolved, consultations undertaken, and revisions of the resettlement schedule and disbursement of budget where required.

12.2 External Monitoring and Evaluation

117. According to ADB’s requirement, the PPMO will engage an M&E agency in July 2019 to monitor and evaluate the resettlement activities of the Project. Such agency should have good reputation, successful experiences and good understanding of ADB’s resettlement policies. The PPMO shall enter an agreement with the external monitoring agency. 12.2.1 Objectives and Requirement of Monitoring and Evaluation (1) Objectives 118. The objectives of M&E are to verify the consistence of LAR activities, the objectives and the principles with the RP. Specially, the M&E will focus the latest situation and resettlement progress of the APs as in the following aspects: (i) Economic situation prior to and after land acquisition; (Ii) Timely disbursement of funds; (Iii) Environmental conditions; (Iv) Social adaptability after resettlement; (v) Measures taken to restore production and livelihoods of the APs and enterprises; and, (Vi)Living conditions and economic status of the APs following resettlement in comparison to the non-affected household in the Project area. 119. M&E will include the establishment of socioeconomic baselines of the APs prior to land acquisition or physical relocation, and the regular monitoring of their relocation or adjustment during Project implementation, and evaluation of their situation for a period of one or two years afterwards. Qualitative and quantitative methods will be used to evaluate the standard of living of the APs. Investigation will include interviews with IA, local officials, community leaders, and

Monitoring, Evaluation and Reporting survey of 100% of affected households. Focus group discussions can be conducted to address issues related to women, poor, and other vulnerable groups. (2) Monitoring indicators 120. The following indicators conform to the principles, entitlements and restoration measure and shall be used for M&E. 121. Disbursement of entitlements to AFs: compensation, land, structures, employment, and necessary assistances as specified in the RP. 122. Development of economic productivity: job opportunities available to the APs, number of the APs employed or unemployed. 123. Restoration of basic infrastructures and special facilities: all necessary basic infrastructures and special facilities should be restored at least up to a standard equal to the standard at the original location; the compensation for all infrastructures and special facilities should be sufficient to reconstruct it to the same quality. 124. Level of the APs satisfaction: level of the APs satisfaction with various aspects of the resettlement program; the operation of the mechanisms for grievance redress will be reviewed and the speed and results of grievance redressal measures will be monitored. 125. Standard of living: Throughout the whole implementation process, the trends in standards of living will be observed and the potential problems in the way of restoration of standards of living will be identified and reported. The Consultant will carry out a comprehensive socioeconomic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually, or until most affected households have fully restored their living standards and income generation. 126. Social adaptability and cohesion: impacts on children, the elderly, public participants, the APs attitudes and reaction to post resettlement situation, number of complaints and appeal procedures and resolution, implementation of preferential policies, income restoration measures, and improvements in women’s status. (3) Special considerations 127. Special attention should be paid to women and the poor during monitoring, including: 128. The status and function of women: Closely monitor any change in women’s status, function and situations. At least 40 % of the APs surveyed will be women. The M&E agency shall also provide recommendations and assistance to the EA in respect of women’s issues. 129. The M&E will provide information on utilization and adequacy of resettlement funds. The Pingxiang Audit Bureau will audit resettlement accounts and funds. The details of this audit would help the monitoring agency.

12.2.2 Methodology 130. The methodologies of external M&E are listed as follows: (1) Given the 2018 socio economic survey carried out and coverling all 38 households, the agency will use the database and analysis in this RP as baseline measure the changes the APs living conditions.. (2) Conduct group discussion and consultation with various groups of people from government, non-government, community and the APs’ representatives. (3) Interview with key persons such as community leaders regarding resettlement implementation. (4) Community public meetings to collect various information on resettlement. (5) Make direct observation regarding progress of demolition and replacement and visit the individuals or groups. (6) Informal investigation or interview by non-sampling means such as with the affected people and staff engaged with resettlement. 12.2.3 Main Tasks 131. The M&E will monitor and evaluate the resettlement relative with the project and consolidate their findings and assessment into a report to ADB, Guangxi PMO, Pingxiang PMO (EA) and IA. These reports will facilitate the policy making for the concerned departments. The APs and non-government organizations and communities will participate in the evaluation activities. 132. External M&E will cover the quality assessment on following the aspects: (i) Adequacy of compensation and timelines of payment; (ii) resettlement of the APs; (iii) Situation of production and living environment pre and post resettlement; bear in mind with a gender perspective; (iv) Livelihood restoration of the APs; (v) Operation and efficiency of the resettlement institutions.

12.3 Reporting Requirements

133. Internal monitoring reports will be submitted quarterly by the EA (Pingxiang PMO) to the Guangxi PMO, while the Guangxi PMO will submit it in the progress report to ADB. The external M&E reports will be submitted directly to the EA, Guangxi PMO and ADB by the M&E on semi-annual basis. The semi-annual external evaluation reports shall be continued until the completion of the resettlement. Finally, after project completion, the M&E shall prepare a resettlement completion and evaluation report and submit to ADB, Guangxi and Pingxiang PMO. Table 12-1 Reporting of External Monitoring

Monitoring, Evaluation and Reporting

November 1st report 2019 2nd May 2020 report semi-annual External M&E November 3rd report External Monitoring Reporting report agency 2021 Resettlement Completion and Evaluation External M&E Report 1 report agency May 2022

Appendix 1: Resettlement Information Booklet

1 Introduction

The Phase-I of Connectivity Project in Pingxiang Sino-Vietnam Cross-Border Economic Cooperation Zone. is located in the southeast of Pingxiang City, starting at K0 + 000 from Puzhai Avenue nearby Busha Village of Pingxiang City, about 700m from S325 highway to the east. The road stretches from the starting point to Nonghuai along X466 county road, and ends at Nonghuai Check Station at K2 + +550. The major control points are the starting point and the ending point. The road direction is from north to south. The total length of the main road is 2.55 km, and the total length of the branch road is 0.273 km, totally 2.823 km. The existing road has been serious damaged and the running conditions are very bad, which needs improvement urgently. The Employer of improvement construction of this road is Pingxiang Urban Construction Investment Company Ltd.

2 Land Acquisition and Resettlement Impacts

The total requirement of construction land of the project is 166.06 mu, including 8.37 mu of use of the existing road. In 2007, the Project acquired 23 mu of forest land from Kafeng Village. The project still needs to acquire 134.69 mu of collective land from Kafeng Village, including 7.68 mu of dry land, 56.80 mu of orchard land and 70.21 mu of forest land. The permanent land acquisition will affect 36 families or 180 persons. For the purpose of road diversion, construction site and material stacking etc. the Project needs to occupy 55 mu of forest land on temporary basis, totally affecting 11 households with 56 persons (including 9 households affected by permanent land acquisition). The major impacts are the loss of forest land. The relevant land attachments shall be also affected, such as fruit trees, grave and electric pole, 2-circuit 10KV power lines, tel-communication lines etc. There are no vulnerable groups among the 38 affected rural families including 19 farmers. Table 1 shows the summary of LAR impacts. Table 2 shows the impacts by project permanent land acquisition. Table 3 shows the impacts of temporary land occupation. Table 4 shows the affected ground attachments. Table 5 shows the summary of affected population.

Table 1 Summary of Land Acquisition and Resettlement Impacts Temporary land Permanent land acquisition occupation Total AFs Numb Tota Numb Numb Administrati Total Land category er of l er of er of ve village area (mu) No. of Affect area No. of Affect No. of Affect Dry Fore Affected ed Affected ed Affected ed lan Orchar st Househol Perso Househol Perso Househol Perso (mu) d d land land ds. ns (mu) ds. ns ds. ns Kafeng 134.6 7.6 70.2 55.0 Village 9 8 56.80 1 36 180 0 11 56 38 194 134.6 7.6 70.2 55.0 Total 9 8 56.80 1 36 180 0 11 56 38 194

Notes: 1 Of the total AFs by temporary land occupation, 9 families will be affected by permanent land acquisition.

Table 2 Impacts of Permanent Land Acquisition by Community Group Permanent Land Entitlements land Land category (mu) (mu) Affected acquisition habitats Total area Orchard Forest Village Nos of Affected (Tun) (mu) Dry land land land Individuals Collective AFs Population Busha Tun 30.22 7.68 18.92 3.62 23.50 6.72 17 85 Kafang Tun 95.17 37.88 57.29 23.02 72.15 19 95 Nongraotun 5.00 5.00 5.00 Qulitun 4.30 4.30 4.30 Village Grand total 134.69 7.68 56.80 70.21 46.51 88.17 36 180

Table 3 Impacts of Temporary Land Occupation Admini Land category Total area of temporary land strativ Affected (mu) Nos of AFs occupation of collective land e Population Dry Forest (mu) village land land Kafen g 11 56 55 55 Village Total 11 56 55 55 Note: Of the total AFs by temporary land occupation, 9 families will be affected by permanent LA at the same time.

Table 4 Affected Ground Attachments

Name of ground attachments Unit Impacts Fruit trees pcs 140 Grave nos 11 2-Circuit 10KV HV electric pole pcs 12 2-Circuit 10KV HV electric wires 1000m 1.5 Tele-communication optical fiber cable 1000m 1.5 Tele-communication pole pcs 4 Tap water pipeline m 1000

Table 5 Summary of Affected Families and Population Adminis Permanent land Temporary land trative Total acquisition occupation village No. of No. of No. of Affected Nos of the Affected Nos of the Affected Nos of the Kafeng Household APs Household APs Househol APs Village s. s. ds. 38 194 36 180 11 56 Grand 38 194 36 180 11 56 total Note: 1. Population affected by acquisition of rural collective land are not counted. 2. Of the total households affected by temporary land occupation, 9 families are also affected by permanent land acquisition at the same time.

3 Grievance Procedure

The APs can propose any complaint related to resettlement issues and compensation. In addition to the existing grievance channels of local government, the Project has established a transparent grievance channel. The first step of grievance procedure established for the Project is through the RC, which is the localized grievance mechanism. The legal resolution is the last step proposed for the APs in case that the APs are not satisfied with the decisions made during the whole localized grievance process. the APs will be informed of the above grievance and appeal procedure through public information meetings, the RIB and other medias, so that they can fully understand their rights for grievance and appeal. The resettlement implementation organizations should resolve the grievance for the APs timely. The basic grievance procedures include the following steps. Stage 1: If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the RC in oral or in written form. If an oral appeal is made, the RC will record it on paper and process it. The RC will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice. Stage 2: If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the district government office after receiving the decision. The district government office will reach a decision in two weeks. The AP will be informed of the result via written notice. Stage 3: If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the PPMO and the PLRB after receiving the decision. The PPMO and the PLRB will reach a decision in two weeks. The AP will be informed of the result via written notice. Stage 4: If the aggrieved AP is still not satisfied with the decision of the PPMO and the PLRB, he/she will appeal to the Chongzuo Municipal Land Resources Bureau in two weeks after receiving the decision. Chongzuo Municipal Land Resources Bureau will make a final resolution and inform such to the AP in written notice. Stage 5: If the aggrieved AP is still not satisfied with the decision of the Chongzuo Municipal Land Resources Bureau, he/she will appeal to Guangxi Land Resources Department in two weeks after receiving the decision. Guangxi Land Resources Department will make a final resolution and inform such to the AP in written notice. Stage 6: If the AP is still dissatisfied with the decision of Guangxi Land Resources Department, he/she will appeal to the civil division of a people’s court according to the civil procedural law in two weeks after receiving the decision. The AP will be informed of the result via written notice.

The APs can appeal on any aspect related to LAR, including compensation standards and payment etc. The aggrieved person(s) may submit a compliant to the ADB project team to try to solve the problem. If good faith efforts have been made with the ADB project team and the aggrieved persons are still dissatisfied, they can elevate their complaints to the ADB Accountability Mechanism (https://www.adb.org/documents/accountability-mechanism-policy-2012). The Accountability Mechanism provides an independent forum and process where any aggrieved persons can seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. The PPMO will engage a monitoring agency (MA) to be responsible for all resettlement monitoring and evaluation. During the resettlement, the MA shall inspect and report on the resettlement processes and the operation of the PPMO and relevant organizations involved in the LAR at different levels and correct any errors made during the resettlement process.

4 Legal Framework and Policies

The primary objective of the LAR program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project.

The land acquisition, demolition and resettlement of this Project will be complying with the laws and regulations of China, local government and ADB:

Land Administration Law of the People's Republic of China (amended in 2004);

State Council Decision to Deepen Reform and Strictly Enforce Land Administration (Ref. GF [2004] 28];

Implementation Regulations for Land Administration Law of the People's Republic of China (Revised in July 2014);

Provisions of the People's Republic of China on Tax on Occupation of Cultivated Land, Decree No. 49 of Ministry of Finance, State Administration for Taxation;

Method of GZAR on Implementation of Land Administration Law of the People's Republic of China (2001)’

Methods of Guangxi Zhuang Autonomous Region Concerning Implementation of Provisions of the People’s Republic of China on Tax on Occupation of Cultivated Land. Decree No.46 of the People’s Government of Guangxi.

Notice of Human Resources and Social Security Department, Land Resources Administration Department, Finance Department of Guangxi Zhuang Autonomous Region on Implementing Guidelines for Participation of Social Basic Insurance System for Displaced Farmers in Guangxi, (GRSF[2016]46).

Implementing Guidelines for Participation of Social Basic Insurance System for Displaced Farmers in Guangxi (Notice of Human Resources and Social Security Department, Land Resources Administration Department, Finance Department of Guangxi Zhuang Autonomous Region on Implementing Guidelines for Participation of Social Basic Insurance System for Displaced Farmers in Guangxi, (GRSF[2017]32).

Circular of Chongzuo Municipal Government on Implementation of A New-Round Unified Standards of Annual Output Values for Land Acquisition (CZBD [2019] 9);

Circular of Pingxiang Municipality on Adjusting the AAOV of the Acquired Land for 3 Years Preceding Acquisition and the Compensation Standards for Fruit Trees of Different Sizes of the Acquired (occupied) Land (PZF[2016]10);

Circular of Pingxiang Municipality on Methods for Compensation and Resettlement for Acquisition of Collective Land and House Demolition in Pingxiang City (PZF[2016]11];

ADB’s Safeguard Policy Statement, June 2009; ADB's Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010)..

4.1 Compensation Eligibility and Principles

The Project the APs / displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected area. All landowners and users and occupants of structures in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation, according to the types of losses and quantities as well as the cut-off date determined by PMG. The cut-off date for the compensation was August 5, 2018, the date when the pre-announcement of land acquisition issued by the government. Any newly cultivated land, or planting of crops or trees, or structures built after the cut-off date determined by the local government will not be compensated. The compensation principles for the Project are: The following measures shall be taken to improve or at least restore the livelihood of the APs through: (i) Land-based resettlement strategies shall be adopted when the APs are land based where possible, or cash compensation at replacement value for land when the loss of land does not undermine livelihoods; (2) Prompt compensation at full replacement cost for assets that cannot be restored; and (3) additional revenues and services through benefit sharing schemes where possible; and Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. 79

4.2 Compensation Standards and Entitlements

The compensations for land loss, ground attachment and other properties, infrastructure auxiliaries and special facilities shall be directly paid to the owners affected by the Project. Land compensation will be made in cash. The cut-off date for compensation is the date of disclosure of results of detailed measurement, ie. November 27, 2018. The PMG, IA and PLRB could take photos / video of the places on the cut-off date to prevent further influx beyond the cut-off date. Table 6 is the entitlements matrix。

Table 6 Eligibility, Compensation and Entitlement

Degree of impacts Eligible people for compensation Compensation Policy and Responsible Standards Agencies Perma The Project will acquire For contracted 46.51 mu land: 36 ⚫ The cash compensation for the The PPMO, nent 134.69 mu of collective rural households with 180 rural contracted land shall be paid Pingxiang land land permanently, people. directly to the affected Urban acquisit including 7.68 mu of dry individuals. Construction ion land, 56.80 mu of forest The compensation rates for land are: Investment land and 70.21 mu of dry land RMB 38250 /mu, orchard Company forest land. land RMB 39702/mu, forest land Ltd., RMB20046 /mu, forest land RMB Youyiguan 20046/mu. Town ⚫ Land-lost farmers (registered Government, population with land contracting PLRB, rights over 16 years old) shall be Kafeng eligible to get average per-capita Village RC, pension insurance subsidies to RO pay the basic endowment insurance. ⚫ Skill traing and jobs For 88.17 mu village owned land Cash compensation shall be paid to the village collective. The compensation rates for land are: dry land RMB 38250 /mu, orchard land RMB 39702/mu, forest land RMB20046 /mu, forest land RMB 20046/mu. Tempo The total area of 11 households of 56 people The AFs shall get cash The PPMO, rary temporary occupation of affected compensation for crops. Land Pingxiang land collective forest land by recovery fee shall be paid to the Urban

occupa the Project is 55 mu. Contractor. Crops compensations for Construction tion the land-lost farmers: forest land RMB Investment 1542 /mu. Company After completion, the temporarily Ltd., PLRB, occupied land shall be recovered to RO the original status and quality by the Contractor. Ground 140 pieces of scattered APs/owners The APs/owners will get cash The PPMO, attachm trees, 11 graves, 12 compensation. Pingxiang ents and electric poles of 2-circuit Compensation rates are presented Urban infrastru 10KV power lines, 1.5 km in table 6-3 and 6-4. Construction ctures. of 2-circuit 10KV power Investment lines, 1.5km of Company tele-communication Ltd., optical fiber cable, 4 Youyiguan tele-communication poles Town and 1000m of tap water Government, pipelines. Kafeng Village RC, PLRB, RO

5 Resettlement and Restoration Plan The overall objectives of the resettlement program are for the APs to be offered with livelihood opportunities, for the labor force to be resettled properly, and for the living and production conditions of the APs to be improved or at least not worse-off than before the Project. The basic principles of the resettlement and rehabilitation plan are as follows: The people who have permanently lost their land will get land compensation, resettlement subsidies and crops compensation. The compensation will be paid to the affected people in cash. For the APs who will lose their land temporarily, cash compensation for land occupation and crops will be paid to the individual affected persons. The land will be restored to original condition and keep the same quality as before by the contractors. The PPMO, IA, RO and local government will provide necessary assistance during LAR implementation. The economic restoration measures shall include: (i) provision of 30 job posts each year during construction period, and 10 public welfare job positions during operational phases if the APs are willing to work; provision of employment opportunities every year generated by the Project and other related urban development projects. The PMG will coordinate with relevant departments, including the owners of the job positions, labor and social security bureau and district government to arrange the APs to be employed for these job positions, and during periods of cnstruction and implementation, at least 30% of the non-technical jobs shall be given to the females; (ii) provision of technical training to APs in labor force to increase their skills to be employed in institutions, enterprises and businesses, and each training will ensure over 50% of the women to participate; (iii) The registered population over the aged 16 who have the rights in contracting rural collective land shall be provided with insurance subsidies for the land-lost farmers, and the rural the affected people will be covered by the local medical care insurance according to the residence management principle. Compensation for ground attachments will be paid to the affected owners. 6 Cost Estimates The resettlement costs have been covered by the budget of the Project. The total estimated resettlement costs are RMB 7.2075 million. The estimated costs include compensation for collective land acquisition, affected attachments, compensation for infrastructures and special facilities, other costs, and contingencies. The signing agreement on land acquisition and payment of compensation will be carried out from August to November 2019. It is planned that there will be no commencement of civil works until all compensations are paid and all livelihood restoration measures are in place. “In place” means that all arrangements have been made to commence rehabilitation and the APs are registered for these. The internal and external monitoring shall be applied at the same time to ensure the smooth implementation of the RP.