Soci al Monitoring Report

Project Number: 48102-002 September 2020

PRC: Qinghai Haidong Urban-Rural Eco Development Project

Prepared by National Research Center for Resettlement, Hohai University

This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Director, Management or staff, and may be preliminary in nature.

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 Qinghai Haidong Urban-Rural Eco Development Project

Resettlement Monitoring and Evaluation Report (Including Baseline Survey of Affected Peoples)

No.1

National Research Center for Resettlement, Hohai University

Nanjing, Jiangsu, China

July 2019

Project leader Chen Shaojun

M&E staff Chen Shaojun, Cao Zhijie, Lu Ran, Zhou Haiyan, Yang Xue, Tao Hou

Prepared by Chen Shaojun, Cao Zhijie, Lu Ran, Zhou Haiyan, Yang Xue, Tao Hou

M&E agency National Research Center for Resettlement, Hohai University (NRCR)

Address NRCR, Hohai University, No.1 Xikang Road, Gulou District, Nanjing, Jiangsu

Postcode 210000

Tel 025-83786503

Fax 025-83718914

E-mail [email protected]

II Contents 1 SUMMARY ...... 2

1.1 INTRODUCTION TO THE PROJECT ...... 2 1.2 OVERVIEW OF THE RP ...... 4 1.3 EXTERNAL RESETTLEMENT M&E ...... 4 1.3.1 External Resettlement M&E and Baseline Survey Scope ...... 4 1.3.2 Key Points ...... 5 1.3.3 Procedure ...... 5 1.3.4 Range and Methods ...... 5

2 ORGANIZATIONAL STRUCTURE ...... 6

2.1 ORGANIZATIONAL STRUCTURE ...... 6 2.2 INSTITUTIONAL CAPACITY ...... 7

3 PROJECT CONSTRUCTION AND RESETTLEMENT PROGRESS ...... 8

3.1 LAND APPROVAL PROGRESS ...... 8 3.2 PROJECT CONSTRUCTION PROGRESS ...... 8 3.3 RESETTLEMENT PROGRESS ...... 8 3.3.1 LA ...... 8 3.3.2 Permanent Occupation of State-owned Land ...... 12 3.3.3 Temporary Land Occupation ...... 12 3.3.4 HD ...... 13 3.4 EVALUATION ...... 14

4 COMPENSATION RATES, AND FUND DISBURSEMENT PROCESS AND PROGRESS ...... 15

4.1 COMPENSATION RATES ...... 15 4.1.1 Compensation Rates for LA ...... 15 4.1.2 Compensation Rates for Temporary Land Occupation ...... 15 4.1.3 Compensation Rates for Crops and Ground Attachment ...... 17 4.1.4 Compensation Rates for HD ...... 18 4.2 FUND DISBURSEMENT PROCESS AND PROGRESS ...... 18 4.2.1 Fund Disbursement Process ...... 18 4.2.2 Fund Disbursement Progress ...... 18 4.3 EVALUATION ...... 19

5 LIVELIHOOD RESTORATION AND RESETTLEMENT ...... 20

5.1 RESTORATION MEASURES FOR LA ...... 20 5.1.1 Planned ...... 20 5.1.2 Actual ...... 21 5.2 RESTORATION MEASURES FOR TEMPORARY LAND OCCUPATION ...... 21 5.2.1 Planned ...... 21 5.2.2 Actual ...... 21 5.3 RESTORATION MEASURES FOR HD ...... 24 5.3.1 Planned ...... 24 5.3.2 Actual ...... 24 5.4 RESTORATION MEASURES FOR VULNERABLE GROUPS ...... 24

III 5.4.1 Planned ...... 24 5.4.2 Actual ...... 24 5.5 EMDP IMPLEMENTATION ...... 24 5.5.1 Profile of Local Ethnic Minorities ...... 24 5.5.2 EMDP Implementation ...... 26 5.6 SGAP IMPLEMENTATION ...... 29 5.6.1 Affected Population ...... 29 5.6.2 affected by land acquisition Population ...... 29 5.6.3 SGAP Implementation Progress ...... 29 5.7 EVALUATION ...... 32

6 BASELINE SAMPLING SURVEY ...... 33

6.1 METHODS ...... 33 6.2 RESULTS ...... 33 6.2.1 Population ...... 33 6.2.2 Age Structure ...... 33 6.2.3 Education ...... 33 6.2.4 Land Contracting ...... 34 6.2.5 Employment ...... 34 6.2.6 Annual Income and Expenditure ...... 34

7 INFORMATION DISCLOSURE, PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 35

7.1 INFORMATION DISCLOSURE AND PUBLIC PARTICIPATION ...... 35 7.2 GRIEVANCE REDRESS ...... 37

8 FINDINGS AND SUGGESTIONS ...... 40

8.1 FINDINGS ...... 40 8.2 SUGGESTIONS ...... 40

APPENDIXES ...... 42

APPENDIX 1 FIELDWORK PHOTOS ...... 42 APPENDIX 2 INTERVIEW MINUTES ...... 43 APPENDIX 3 LAND APPROVAL DOCUMENTS ...... 44 APPENDIX 4 LA AGREEMENT FOR THE PING ’AN WWTP WATER RECLAMATION WORK (P HASE 2) ...... 45 APPENDIX 5 LA ANNOUNCEMENT FOR LEDU LANDFILL RECONSTRUCTION AND EXPANSION ...... 45

IV List of Tables Table 1-1 Summary of Components ...... 3 Table 1-2 Summary of Resettlement Impacts ...... 4 Table 2-1 Resettlement Agencies ...... 7 Table 3-1 Summary of LA Impacts ...... 10 Table 3-2 Comparison of Planned and Actual LA Impacts ...... 10 Table 3-3 Comparison of Planned and Actual Impacts of Permanent Occupation of State-owned Land 12 Table 3-4 Actual Impacts of Temporary Land Occupation ...... 13 Table 3-5 Comparison of Planned and Actual Impacts of Temporary Land Occupation ...... 13 Table 3-6 Summary of HD Impacts ...... 14 Table 4-1 LA Compensation Rates ...... 16 Table 4-2 Compensation Rates for Crops and Ground Attachment ...... 17 Table 4-3 Compensation Rates for HD in Ping ’an District ...... 18 Table 5-1 Minority Population in the Direct Beneficiary Area (unit: person, %) ...... 22 Table 5-2 Statistics of Ethnic Minority Development Projects in Ping’an District in 2018 ...... 22 Table 5-3 Minority Population in the Direct Beneficiary Area (unit: person, %) ...... 32 Table 5-4 EMDP Monitoring Matrix ………………………………………………………………………………………… .…… .27 Table 5 5SGAP Monitoring Matrix ………………………………………………………………………………………………… .30 Table 6-1 Distribution of Sample Towns ...... 33 Table 6-2 Age and Education Distribution of Samples ...... 33 Table 6-3 Household Income and Expenditure of Samples ...... 34 Table 7-1 Main Information Disclosure and Public Participation Activities...... 37 Table 7-2 Contact Information for Grievance Redress ...... 38 TABLE 1-3 GRIEVANCE AND APPEALS DURING THE REPORTING PERIOD ………………………………………………… 39

List of Figures Figure 2-1 Organizational Chart ...... 6 Figure 3-1 Management Stations of the Wenzukou (Left) and Fatai (Right) Reservoirs ...... 14 Figure 4-1 Fund Disbursement Process ...... 18 Figure 7-1 Public Participation Activities at the Planning Stage ...... 35 Figure 7-2 RP and EMDP Announcements ...... 35 Figure 7-3 Design Change Announcement ...... 36 Figure 7-4 LA Announcement ...... 36 Figure 7-5 DMS ...... 36 Figure 7-6 Guidance by ADB Experts ...... 37 Figure 7-7 Grievance Redress Flowchart ...... 38

Abbreviations ADB - Asian Development Bank AH - Affected Household AP - Affected Person DMS - Detailed Measurement Survey FGD - Focus Group Discussion

V HD - House Demolition IA - Implementing Agency LA - Land Acquisition LEF - Land-expropriated Farmer M&E - Monitoring and Evaluation MLS - Minimum Living Security MSW - Municipal Solid Waste NRCR - National Research Center for Resettlement PMO - Project Management Office PRC - People’s Republic of China RP - Resettlement Plan SGAP - Social and Gender Action Plan WWTP - Wastewater Treatment Plant

Units

Currency unit = Yuan (CNY) USD1.00 = CNY6 1 hectare = 15 mu

1 1 Summary 1.1 Introduction to the Project The Qinghai Municipal Government has used an ADB loan of $150 million and domestic counterpart funds of about $72 million to implement the Qinghai Haidong Urban-Rural Eco Development Project (hereinafter, the “Project”). The Project aims to promote urban-rural eco development, including: 1) expanding water supply, wastewater treatment and solid waste management capacity; 2) conserving water through wetland rehabilitation; 3) promoting the integrated management of river rehabilitation and flood risk control; and 4) improving integrated water resources management and institutional capacity. The Project consists of the following components: 1) Component 1: River Rehabilitation: The objective of this component is to reduce flood risks, maintain and improve the ecological environment, and beautify the landscape. This component includes: 1) Ping’an segment; 2) Ledu urban segment; 3) Ledu non-urban segment; 4) Riverfront shelter forest; and 5) Yizhou wetland. 2) Component 2: Eco-environment Protection and Restoration: The objective of this component is to prevent water loss and soil erosion, alleviate flood risks, reinforce embankments, and increase vegetation coverage (planting a variety of tree species on riverbanks and mountain boundary). This component includes: 1) Mountain boundary shelter forest construction in Ping’an District; and 2) Ping’an WWTP Water Reclamation Work (Phase 2). 3) Component 3: Rural Water Supply and MSW Management Infrastructure Construction: The objective of this component is to realize wastewater reclamation in Ping’an District, and MSW management in Ledu District. This component includes: 1) Urban-rural water supply; and 2) Ledu landfill reconstruction and expansion. 4) Component 4: Project Management and Capacity Building: The objective of this component is to ensure the effective operation of the EA and IAs, e.g., flood management basin planning, water conservation, sponge city practice, water quality control, response to climate change, and wetland management. The 5 subcomponents that have not been adjusted, namely the Ping’an segment, Yizhou wetland, urban-rural water supply, Ping’an WWTP Water Reclamation Work (Phase 2), and Ledu landfill reconstruction and expansion, have not been started, and LA compensation is under preparation. For the 4 subcomponents that have been adjusted, namely the Ledu urban segment, Ledu non-urban segment, riverfront shelter forest, and mountain boundary shelter forest construction in Ping’an District, LA compensation and construction have been completed are not within the scope of this report,. For details, please refer to DDR submitted by PMO.

2 Table 1-1 Summary of Components No. Component Subcomponent Resettlement impacts Remarks 1 River 1) Ping’an segment 1) Involving the permanent acquisition of 356.14 mu of collective land, affecting 304 Data of this round of M&E Rehabilitation households with 1273 persons, including 255.99 mu of cultivated land, 97.11 mu of woodland and 3.04 mu of unused land, and the temporary occupation of 17.9 mu of land, affecting 25 households with 110 persons. 2) Ledu urban 2) Involving no LA, no collective land transfer, and the occupation of 1100 mu of state-owned The data is from the R P. LA segment land in 2 villages in Nianbo Town compensation is not within 3) Ledu non-urban 3) Involving the permanent acquisition of 903.4 mu of collective land, including 205.9 mu of the scope of this report. segment irrigated land, 180.35 mu of river flat, 392.5 mu of woodland and 121.95 mu of grassland, affecting 538 households with 1911 persons in 4 towns 4) Riverfront shelter 4) Involving the transfer of 744mu of collective land, including 568.8 mu of irrigated land and forest 175.2 mu of river flat, affecting 736 households with 2721 persons in 6 villages in Ping’an Town, and the occupation of 292.5 mu of state-owned land in 3 villages in Ping’an Town 5) Yizhou wetland 5) Involving the permanent acquisition of 277.75 mu of collective land, including 12 mu of Data of this round of M&E cultivated land and 141.18 mu of woodland, affecting 21 households with 86 persons in 3 villages in Ping’an Town, the occupation of 21.23 mu of state-owned land, and the temporary occupation of 14 mu of land, affecting 16 households with 68 persons 2 Eco-environment 6) Mountain boundary 6) Involving 1,570.5 of collectively owned barren hills that are not contracted to households, The data is from the RP. LA Protection and shelter forest and involve no income and no one compensation is not within Restoration construction in the scope of this report Ping’an District 7) Ping’an WWTP 7) Involving the permanent acquisition of 11.92 mu of collective land, including 6.88 mu of Data of this round of M&E Water Reclamation wasteland and 5.04 mu of cultivated land, affecting 3 households with 12 persons in 3 Work (Phase 2) villages in Ping’an Town 3 Rural Water 8) Urban-rural water 8) Involving the permanent acquisition of 22.75 mu of collective land, including 2.81 mu of Data of this round of M&E Supply and MSW supply cultivated land, 14.25 mu of woodland and 5.69 mu of wasteland, affecting 15 households Management with 55 persons in Sanhe Village, Sanhe Town, the occupation of 4.53 mu of state-owned Infrastructure land, the temporary occupation of 93 mu of land, affecting 86 households with 336 persons, Construction and the demolition of two properties of 722 m2, including 572 m2 in simple structure and 150 m2 in masonry timber structure, affecting 27 workers 9) Ledu landfill 9) Involving the permanent acquisition of 11.44 mu of collective land in Qilidian Village, Data of this round of M&E reconstruction and Nianbo Town, all being woodland, affecting no one, and the temporary occupation of 3.9 mu expansion of land, affecting 4 households with 21 persons Project Designed to ensure Involving no resettlement 4 Management and the effective operation Capacity Building of the EA and IAs

3 1.2 Overview of the RP Based on the identification of resettlement impacts, LA for the Project is caused mainly by River Rehabilitation, and Rural Water Supply and MSW Management Infrastructure Construction, land transfer by the riverfront shelter forest in River Rehabilitation, and the occupation of state-owned land by the Ledu urban segment in River Rehabilitation. All the 3 components of the Project involve LA. According to the RP approved by ADB in June 2016, 1,460.97 mu of collective land has been acquired for the Project (including 540.87 mu of irrigated land, 207.35 mu of river flat, 470.8 mu of woodland, 121.95 mu of grassland and 120 mu of wasteland), affecting 842 households with 3,112 persons in 49 villages in 8 townships in two districts in Haidong City; 1,416.49 mu of state-owned land (non-farmland) will be occupied; 744 mu of collective land (including 568.8 mu of irrigated land and 175.2 mu of river flat) will be transferred, affecting 736 households with 2,721 persons; 106.82 mu of land will be occupied temporarily, affecting 145 households with 423 persons. The Project will affect 96 vulnerable households with 162 persons 1, scattered trees, telegraph poles and other ground attachments. The Project does not involve HD. See Table 1-2.

Table 1-2 Summary of Resettlement Impacts Rural Water Supply and Eco-environment River MSW Management No. Item Unit Protection and Subtotal Rehabilitation Infrastructure Restoration Construction 1 LA mu 1321.45 6.22 133.3 1460.97 Occupation of state-owned 2 mu 1409.45 0 7.04 1416.49 land 3 Temporary land occupation mu 50.22 14.8 41.8 106.82 Directly HH 823 10 9 842 LA affected Person 3046 35 31 3112 4 Temporary HH 66 21 58 145 Temporarily land affected Person 188 75 160 423 occupation

1.3 External Resettlement M&E The external resettlement M&E work of the Project is undertaken by NRCR, which will conduct follow-up M&E on resettlement, and submit M&E reports to the Haidong PMO and ADB. As of June 30, 2019, the task force had conducted a baseline survey on the resettlement work of the Project with the assistance of the Haidong PMO, including FGDs with the agencies concerned and door-to-door interviews to learn LA, HD and resettlement. 1.3.1 External Resettlement M&E and Baseline Survey Scope The scope of this round of M&E is: 1) LA and resettlement implementation, especially the 5 subcomponents that have not been adjusted, namely the Ping’an segment, Yizhou wetland, urban-rural water supply, Ping’an WWTP Water Reclamation Work (Phase 2), and Ledu landfill reconstruction and expansion; 2) fund disbursement and livelihood restoration; 3) baseline survey; and 4) information disclosure and grievance redress. For the 4 subcomponents that have been adjusted, namely the Ledu urban segment, Ledu non-urban segment, riverfront shelter forest, and mountain boundary shelter forest construction in Ping’an District, LA compensation and construction are not covered by this report.

1 Including MLS households, five-guarantee households, the disabled and women-headed households.

4 1.3.2 Key Points This is the No.1 external resettlement and social M&E report of the Project (including the baseline survey), and aims to monitor and sum up the resettlement work as of June 30, 2019, find out issues in resettlement, and propose solutions accordingly, covering organizational setup, resettlement progress, resettlement implementation, public participation, grievance redress, etc. By the end of June 2019, resettlement, public participation, LA compensation and livelihood restoration activities were underway, so this report mainly covers: 1) Institutional capacity building; 2) Resettlement policies on LA and HD, and comparison with the RP; 3) Changes of resettlement impacts; 4) Resettlement implementation progress, especially land use; 5) LA compensation rates and fund disbursement; 6) Issues in resettlement, public participation and livelihood restoration; 7) Internal supervision on resettlement; 8) Public participation modes and effects; 9) Grievance redress 1.3.3 Procedure  Preparing terms of reference  Designing a sampling plan  Baseline survey  Establishing an M&E information system  Follow-up survey  Information compilation and analysis  Preparing a baseline survey report 1.3.4 Range and Methods The task force conducted a special survey on the land used for the Ping’an segment, Yizhou wetland, urban-rural water supply, Ping’an WWTP Water Reclamation Work (Phase 2), and Ledu landfill reconstruction and expansion. The task force conducted a survey on some affected villages to learn construction and resettlement progress, land use, public participation, etc. During the survey, 7 FGDs and 75 key informant interviews were conducted. Literature review: Documents, agreements and reports on LA, HD and resettlement were referred to and verified. FGD: 7 FGDs were held with the PMO, supervising agency, affected village committees and AHs to learn LA, HD and resettlement implementation. Key information interview: Key information interviews were conducted with 75 persons, including heads of agencies concerned, village heads, AHs, women, old people, etc. to learn project progress and impacts, attitudes to the Project, issues, etc. Sample survey : In June 2019, the external monitoring team of Hohai University conducted a sample survey on 5 villages in the five townships (towns) of Ping'an Town, Xiaoxia Town, Sanhe Town, Gaodian Town and Jianbo Town affected by the project. A total of 135 households 572 persons were selected. The survey mainly includes the family population, housing conditions, annual family income, and annual household expenditure.

5 2 Organizational Structure 2.1 Organizational Structure In order to ensure the successful implementation of resettlement as expected, an organizational structure must be established at the implementation stage to plan, coordinate and monitor resettlement activities. Since resettlement is a comprehensive task that requires the cooperation of different agencies, the departments concerned will participate in and support resettlement implementation. The agencies responsible for resettlement in the Project are:

Haidong Project Leading Group

External M&E agency Haidong PMO

Haidong Municipal Land and IAs: Ping’an District / Ledu Resources Bureau District Housing Construction Bureaus and Water Bureaus

Ledu District Land and Ping’an District Land and Resources Bureau Resources Bureau

Affected township governments

Affected villages

Figure 2-1 Organizational Chart

Haidong Project Leading Group : responsible mainly for the organizational leadership of the Project, coordinating and solving major issues, directing and coordinating project implementation, supervising the progress of project implementation Haidong PMO : 1) executing major decisions of the Project Leading Group on the Project; 2) coordination, management, supervision and service in project implementation; 3) contacting with the state, provincial and municipal departments concerned, and ADB; 4) coordinating the finalization of legal documents of the Project with ADB, and reporting to the Project Leading Group and ADB regularly; 5) appointing an external resettlement M&E agency to monitor and evaluate resettlement activities

6 Owner : 1) coordinating the consulting agency with other agencies at the preparation stage; 2) coordinating the implementation progress of the Project and the RP, and reporting the resettlement fund disbursement plan and supervising the disbursement of funds; 3) tracking and supervising the disbursement of resettlement funds, and handling grievances and appeals of APs arising from resettlement; 4) supporting the work of the external M&E agency, and managing resettlement files Haidong Municipal, Ping’an District and Ledu District Land and Resources Bureaus : 1) developing the resettlement policies in coordination with departments concerned; 2) taking full charge of LA affairs (including endowment insurance for LEFs); 3) participating in the DMS; 4) supervising the implementation of resettlement activities Affected township governments : 1) participating in the DMS, organizing public participation, and giving publicity on resettlement policies; 2) implementing, inspecting, monitoring and recording all resettlement activities; 3) disbursing and managing resettlement funds; 4) coordinating conflicts arising from its work; 5) participating in skills training for APs, and implementing employment measures for APs External M&E agency : 1) Observing all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the resettlement results and the social adaptability of the APs, and submitting resettlement M&E reports to the Haidong PMO and ADB; 2) providing technical advice to the Haidong PMO in data collection and processing.

2.2 Institutional Capacity According to the intensity of land acquisition and resettlement activities, each resettlement agency has a fixed office location, office equipment, and resettlement implementation management fees. The costs are paid by the project owner uniformly, and are paid in place when the resettlement activities start.. The study found that Haidong PMO has fewer staff and the organization is responsible for resettlement and social work. There are some post adjustments, resulting in the problem that the new staff does not understand the project content and the resettlement experience of ADB. It is recommended that the staff of the project office pass work practice and Related training and learning..

Table 2-1 Resettlement Agencies Person City / district Agency Workforce Tel responsible Haidong City Haidong PMO Zhou Haiping 7 13897028500 Ping’an District Housing Ping’an Zheng Gang 2 15609720006 Construction Bureau District Ping’an District Water Bureau Wang Zhitang 2 18709720087 Ledu District Housing Xu Shangmao 4 15500775835 Ledu District Construction Bureau Ledu District Water Bureau Yu Changxian 8 13997028959

The Haidong PMO and the IA have established resettlement management and implementation agencies. The agencies are mostly composed of professionals with rich experience in domestic LA and resettlement, who can play a good organizing and coordinating role in LA and resettlement. The survey shows that the resettlement agencies are understaffed and therefore unable to handle day-to-day work properly; some jobs have been adjusted, and the newly appointed staff lacks understanding in the Project and resettlement. These agencies should add full-time staff, and offer pertinent training to their staff in order to fulfill their duties and tasks properly.

7 3 Project Construction and Resettlement Progress 3.1 Land Approval Progress According to the Measures for the Administration of the Pre-examination of the Use of Land for Construction Projects (Decree No.27 of the Ministry of Land and Resources), the examination and approval procedure for additional construction land includes 7 steps – pre-examination, initiation, land application, plan drafting and submission for approval, implementation, and land registration:  The municipal (county) land and resources bureau or the township government or sub-district office investigates and freezes the approved construction land, which should not be developed by any organization or individual without approval.  The municipal (county) land and resources bureau signs an LA agreement with the proprietor of the acquired land.  The LA resettlement program, policy, procedure, compensation rate, LA range and use of the acquired land are disclosed for public supervision.  The affected collective economic organization and its members, and other proprietors are subject to timely and proper compensation and resettlement. The land use applications of the components were approved in May 2016, and the feasibility study report approved in July 2016. See Appendix 3 .

3.2 Project Construction Progress By the end of June 2019, the subcomponents had not broken ground. The pump stations of the Ping’an WWTP Water Reclamation Work (Phase 2) were bid for in May 2019, and an LA agreement has been signed .The subproject will permanently acquire 2.73 mu of collective land and 7.01 mu of state-owned land, affecting 12 persons in 3 households in 3 villages in Ping'an Town. A total of 1.4342 million yuan of compensation fees will need to be paid, including 884,300 yuan for land acquisition and 549,900 yuan for young crops and appendages. It is expected that the compensation will be paid in the second half of 2019; the other subcomponents have not begun, and LA compensation has not begun. See Appendix 4 for the LA agreement for the Ping’an WWTP Water Reclamation Work (Phase 2).

3.3 Resettlement Progress 3.3.1 LA 1. Planned 1) The Ping'an segment will involve the permanent acquisition of 135 mu of collective land, including 108 mu of irrigated land and 27 mu of river flat, affecting 85 households with 305 persons, including 40.5 mu in 3 villages in Ping’an Town, affecting 35 households with 120 persons, and 94.5 mu in two villages in Xiaoxia Town, affecting 50 households with 185 persons. 2) The Ledu urban segment does not involve LA. 3) The Ledu non-urban segment will involve the permanent acquisition of 903.4 mu of collective land, including 205.9 mu of irrigated land, 180.35 mu of river flat, 392.5 mu of woodland and 121.95 mu of grassland, affecting 538 households with 1,911 persons in 4 towns. 4) The riverfront shelter forest does not involve LA. 5) The Yizhou wetland will involve the permanent acquisition of 283.05 mu of collective land, including 207.45 mu of irrigated land and 75.6 mu of woodland, affecting 200 households with 830 persons in two villages in Ping’an Town. 6) Mountain boundary shelter forest construction in Ping’an District does not involve LA.

8 7) The Ping’an WWTP Water Reclamation Work (Phase 2) will involve the permanent acquisition of 6.22 mu of land, all being irrigated land, affecting 10 households with 35 persons in Dongying Village, Ping’an Town. 8) Urban-rural water supply will involve the permanent acquisition of 13.3 mu of collective land, all being irrigated land, affecting 9 households with 31 persons in Sanhe Village, Sanhe Town. 9) Ledu landfill reconstruction and expansion will involve the permanent acquisition of 120 mu of collective land in Qilidian village, Nianbo Town, all being wasteland, affecting no one. 2. Actual impact baseline Baseline data from project implementation agency and External monitoring survey, By the end of June 2019, 680 mu of collective land will be acquired for the Project, affecting 343 households with 1,426 persons, as detailed below: 1) 356.14 mu of collective land had been acquired for the Ping’an segment, including 255.99 mu of cultivated land, 97.11 mu of woodland and 3.04 mu of unused land, affecting 304 households with 1,273 persons, including 213.19 mu in 7 villages in Ping’an Town, Ping’an District, affecting 132 households with 562 persons; 60.35 mu in two villages in Xiaoxia Town, Ping’an District, affecting 76 households with 339 persons; and 82.59 mu in 3 villages in Gaodian Village, Ledu District, affecting 96 households with 372 persons. 2) 277.75 mu of collective land had been acquired for the Yizhou wetland, including 12 mu of cultivated land, 141.18 mu of woodland, 14 mu of unused land and 110.57 mu of other land, affecting 21 households with 86 persons in 3 villages in Ping’an Town; in addition, 21.23 mu of state-owned land had been occupied. 3) 11.92 mu of collective land had been acquired for the Ping’an WWTP Water Reclamation Work (Phase 2), including 6.88 mu of wasteland and 5.04 mu of cultivated land, affecting 3 households with 12 persons in 3 villages in Ping’an Town. 4) 22.75 mu of collective land had been acquired for urban-rural water supply, including 2.81 mu of cultivated land, 14.25 mu of woodland and 5.69 mu of barren hill, affecting 15 households with 55 persons in Sanhe Village, Sanhe Town; the barren hill is owned by the Zhangqizhai Village collective and not contracted to households, affecting no one. 5) 11.44 mu of collective land in Qilidian Village, Nianbo Town had been acquired for Ledu landfill reconstruction and expansion, all being woodland not contracted to households, affecting no one.

9

Table 3-1 Summary of LA Impacts Survey data (mu) Affected Affected Minority Vulnerable Subcomponent Cultivated Wood Waste Other Town AHs APs Total area villages population population land land land land Ping’an, Ping’an, 24 HHs with 32 Ping’an segment 255.99 97.11 3.04 / 356.14 Xiaoxia, 10 304 1273 29 Ledu persons Gaodian 1 HH with 2 Yizhou wetland 12 141.18 14 110.57 277.75 Ping’an Ping’an 3 21 86 0 persons Ping’an WWTP Water 1 HH with 6 Reclamation Work 5.04 / 6.88 / 11.92 Ping’an Ping’an 3 3 12 0 persons (Phase 2) Urban-rural water 3 HHs with 13 2.81 14.25 5.69 / 22.75 Ping’an Sanhe 2 15 55 0 supply persons Ledu landfill reconstruction and / 11.44 / / 11.44 Ledu Nianbo Qilidian Collective / / expansion 29 HHs with 53 Total 275.84 263.98 29.61 110.57 680 19 343 1426 29 persons

Table 3-2 Comparison of Planned and Actual LA Impacts LA area Percentage of No. Component Subcomponent Planned (mu) Variation 2 (mu) completion (%) 1) Ping’an segment 135 356.14 +221.14 0% 2) Ledu urban segment 0 / / / 1 River Rehabilitation 3) Ledu non-urban segment 903.4 / / / 4) Riverfront shelter forest 0 / / / 5) Yizhou wetland 283.05 277.75 -5.75 0% 6) Mountain boundary shelter forest 0 / / / Eco-environment construction in Ping’an District 2 Protection and Restoration 7) Ping’an WWTP Water Reclamation 6.22 11.92 +5.7 0% Work (Phase 2) Rural Water Supply and 8) Urban-rural water supply 13.3 22.75 +9.45 0% 3 MSW Management 9) Ledu landfill reconstruction and 120 11.44 -108.56 0%

2 Variation = actual (mu) – planned (mu)

10 LA area Percentage of No. Component Subcomponent Planned (mu) Variation 2 (mu) completion (%) Infrastructure Construction expansion Total 1460.97 680

11 The survey data differs from the planned data for the following reasons: 1) Ping’an segment : The actual LA area is 221.14 mu more than planned, because only cultivated land is included in the RP and feasibility study report, while woodland and waste land is excluded, and measurement is based on the boundary map in the RP and feasibility study report. 2) Yizhou wetland : The actual LA area is 5.75 mu less than planned, mainly due to different statistical bases. 3) Ping’an WWTP Water Reclamation Work (Phase 2) : The actual LA area is 5.7 mu more than planned, because marginal land is acquired along in practice. 4) Urban-rural water supply : The actual LA area is 9.45 mu more than planned, because measurement is based on the boundary map in the RP and feasibility study report. 5) Ledu landfill reconstruction and expansion : The actual LA area is 108.56 mu less than planned, mainly due to different statistical bases, where the LA area in the RP is the floor area of the whole landfill, while the actual LA area is only 11.44 mu.

3.3.2 Permanent Occupation of State-owned Land 1) Planned 1,416.49 mu of state-owned land will be occupied permanently for the Project, including 1,100 mu for the Ledu urban segment, 16.95 mu for the Yizhou wetland and 7.04 mu for urban-rural water supply. 2) Actual impact baseline By the end of June 2019, 25.76 mu of state-owned land had been occupied permanently, including 21.23 mu for the Yizhou wetland and 4.53 mu for urban-rural water supply, differing from those in the RP due to different statistical bases. Table 3-3 Comparison of Planned and Actual Impacts of Permanent Occupation of State-owned Land Planned Actual Percentage of Subcomponent Variation (mu) (mu) completion (%) Ledu urban segment 1100 / / / Yizhou wetland 16.95 21.23 +4.28 0% Urban-rural water supply 7.04 4.53 -2.51 0% Total 1416.49 25.76 / /

3.3.3 Temporary Land Occupation 1) Planned 106.82 mu of land will be occupied temporarily for the Project, affecting 145 households with 423 persons, including 5.5 mu for the Ping’an segment, affecting 10 households with 36 persons; 28.72 mu for the Ledu non-urban segment, affecting 30 households with 72 persons; 5.2 mu for the riverfront shelter forest, affecting 9 households with 28 persons; 10.8 mu for the Yizhou wetland, affecting 17 households with 52 persons; 6.3 mu for mountain boundary shelter forest construction in Ping’an District, affecting 10 households with 39 persons; 8.5 mu for the Ping’an WWTP Water Reclamation Work (Phase 2), affecting 11 households with 36 persons; 32.6 mu for urban-rural water supply, affecting 46 households with 126 persons; and 9.2 mu for Ledu landfill reconstruction and expansion, affecting 12 households with 34 persons. 2) Actual impact baseline Baseline data from project implementation agency and External monitoring survey, By the end of June 2019, 128.8 mu of land had been occupied temporarily for the Project, affecting 131 households with 535 persons, including 17.9 mu for the Ping’an segment, affecting 25 households with 110 persons; 14 mu for the Yizhou wetland, affecting 16 households with 68 persons; 93 mu for

12 urban-rural water supply (8.5 mu of state-owned land and 84.5 mu of rural collective land), and 3.9 mu for Ledu landfill reconstruction and expansion, affecting 4 households with 21 persons. The actual temporarily occupied land area has varied due to different statistical bases.

Table 3-4 Actual Impacts of Temporary Land Occupation Temporarily occupied land area (mu) Affected No. Subcomponent Cultivated Wood Unused State-owned Total HHs Population land land land land 1 Ping’an segment 5 / 12 0.9 17.9 25 110 2 Yizhou wetland 8 / 6 / 14 16 68 3 Urban-rural water supply 43.5 30 11 8.5 93 86 336 Ledu landfill reconstruction 4 / / 3.5 0.4 3.9 4 21 and expansion Total 56.5 30 32.5 9.8 128.8 131 535

Table 3-5 Comparison of Planned and Actual Impacts of Temporary Land Occupation No. Component Subcomponent Planned (mu) Actual (mu) Variation 1) Ping’an segment 5.5 17.9 +12.4 2) Ledu urban segment 0 0 0 1 River Rehabilitation 3) Ledu non-urban segment 28.72 / / 4) Riverfront shelter forest 5.2 / / 5) Yizhou wetland 10.8 14 +3.2 6) Mountain boundary shelter forest Eco-environment 6.3 / / construction in Ping’an District 2 Protection and 7) Ping’an WWTP Water Restoration 8.5 8.5 0 Reclamation Work (Phase 2) Rural Water Supply 8) Urban-rural water supply 32.6 93 +60.4 and MSW 9) Ledu landfill reconstruction and 3 Management expansion 9.2 3.9 -5.3 Infrastructure Construction Total 106.82 128.8

3.3.4 HD 1) Planned According to the RP approved in June 2016, the Project does not involve HD. 2) Actual impact baseline The urban-rural water supply subcomponent involves the demolition of the properties of two entities (Wenzukou and Fatai Reservoir Management Stations) of 722 m2, including 572 m2 in simple structure and 150 m2 in masonry timber structure, affecting 27 workers. These two entities will not be relocated, and will be subject to cash compensation. See Table 3-6.

13 Figure 3-1 Management Stations of the Wenzukou (Left) and Fatai (Right) Reservoirs

Table 3-6 Summary of HD Impacts R Degree of Degree Township operation operation affected? Property Property elocated?

2 Industry N District District impact impact HD area (m ) Wor Averag nature ormal ormal Villag Entity Lega Mason k e Land type Remar e l rep. ry Simple forc salary ks timber e (yuan)

Sanheyao Ping Sanhe Sanhe Town dong dong Wenzukou

Zhu management Reservoir ’ Yin’a / 572 Reservoir 15 6000 Affiliate an Managem d to the ent Station n Shihuiyao Shihuiyao

Ping State-own Owne Parti Ping’an Shiguasi No No i ngXia Fatai ed d al District Reservoir Liu Water ’ 150 / 12 6000 an Managem Jifa Bureau

ent Station

3.4 Evaluation 1) The preliminary design has been approved, but the subcomponents have not broken ground; bidding for the pump stations of the Ping’an WWTP Water Reclamation Work (Phase 2) has been completed, and an LA agreement signed. 2) Compared to the RP, the LA and HD impacts of the subcomponents have varied greatly, while the impacts of temporary land occupation and state-owned land occupation have varied slightly. The main reasons for such variations are as follows: a) Only cultivated land is included in the RP and feasibility study report, while woodland and waste land is excluded. b) Measurement is based on the boundary map in the RP and feasibility study report. c) The former and later statistical bases are different. In addition, urban-rural water supply involves the demolition of the properties of two entities (Wenzukou and Fatai Reservoir Management Stations) with a total area of 722 m 2. These two entities will not be relocated, and will be subject to cash compensation.

14 4 Compensation Rates, and Fund Disbursement Process and Progress 4.1 Compensation Rates 4.1.1 Compensation Rates for LA 1) Planned According to the RP approved in June 2016, the LA compensation rates of the Project are based on the Uniform Annual Output Values and Location-based Compensation Rates for Land Acquisition (QPG [2015] No.61). See Table 4-1. 2) Actual By the end of June 2019, the latest compensation rates were still based on the Uniform Annual Output Values and Location-based Compensation Rates for Land Acquisition (QPG [2015] No.61). If any new compensation rate is issued during project implementation, such new rate will apply. The task force will continue to pay attention to this in future M&E. 4.1.2 Compensation Rates for Temporary Land Occupation 1) Planned The temporarily occupied land will be compensated for based on the actual period of occupation, and the compensation rate is based on AAOV. The compensation rate for the land occupied temporarily for the Project is 1,040 yuan/mu per annum, and affected seedlings and trees will be compensated for based on the Compensation Rates for Acquired Houses and Attachments on Collective Land in Ping’an District (PDG [2013] No.71), and Compensation Program for Acquired Houses and Attachments on Collective Land in Ledu District (HRACO [2013] No.53). The period of occupation will be one year and not exceed two years. Construction will usually be conducted after harvest or before sowing to reduce impacts of temporary land occupation. 2) Actual Temporary land occupation for the Project is caused mainly by material stockyards, mixing yards, temporary sheds and pipeline construction. By the end of June 2019, construction had not begun, nor had compensation for temporary land occupation.Temporary land compensation has not started, The PMO promises that the planned compensation rates will apply, and any new rate issued during project implementation will apply. The task force will continue to pay attention to this in future M&E.

15 Table 4-1 LA Compensation Rates Uniform AAOV (yuan/mu) Amount of compensation (yuan) 20 times for irrigated land (per capita >0.3 20 times for Non- 11 times Tier Region District Areas Irrigated Pasture mu) non- irrigated for pasture land land 30 times for irrigated irrigated land land land (per capita <0.3 land mu)

Huangshui Huangshui 1. Ping’an Town: ( Xiying, Dongzhuang, Shangzhuang, Valley Valley River River Dalu, Zhangjiazhai,); 2. Xiaoxia Town: (Guchengya, 49400 Ping’an 2470 1330 215 26600 2365 1 Shangdian, Xiadian, Liuwan) Ping’an Town:(Zhongcun,Xicun,Dongying) 74100 Ledu Nianbo Town: (Qilidian) 2470 1330 215 49400 26600 2365 1. Sanhe Town: (Sanhe); 2. Xiaoxia Town: (Sanshilipu, Ping’an 1915 1252 215 38300 25040 2365 Wangjiazhuang) Huangshui River Valley Valley River Huangshui 1. Hongshui Town: (Dianzi,Shangyaodong, Adong, Axi, Matangzi, Xiajie, Shuangyi, Shuang ’er, Gaojiawan, 38300 Jiangwan); 1.Hongshui Town:(Hexi); 2. Gaodian Town: (Dongmen, 2 Ximen, Daxia, Liushuwan, Hetanzhai, Xiakou); 3. Ledu Yurun Town: (Xuan’ergou, Hanzhuang, Yangquan, 1915 1252 215 25040 2365 Shangxingyuan, Xiaxingyuan, Dadiwan, Liujia, 57450 Shengou); 4. Gaomiao Town: (Langjia, Laoya, Chaomajia, Baiyazi, Pujiadun, Handiwan, Xiagou, Changli, Liuwan, Dongcun, Xicun, Duanbaozi, Xinsheng, Dalu)

16

4.1.3 Compensation Rates for Crops and Ground Attachment 1) Planned In the Project, the compensation rates for crops are equal to the uniform AAOV for the acquisition of cultivated land to which they are attached.

Table 4-2 Compensation Rates for Crops and Ground Attachment Compensation rate Item Description Rate Height 201-250cm 170 yuan Spruce Height 161-200cm 100 yuan Height 121-150cm 20 yuan Pine Height 250cm or above 140 yuan Elm Diameter 4-5cm 40 yuan Sea buckthorn Height 35-50cm 0.11 yuan 1. Seedlings Mountain apricot Height 80-120cm 0.55 yuan Poplar Biennial 2.5 yuan Diameter 3-4cm 38.5 yuan Ulmus pumilavar Diameter 5-7cm 55 yuan Conifers Height 30-50cm 2.4 yuan Elm Age 2 years 0.3 yuan Apricot Age 3-4 years 4 yuan Diameter 11-15cm 50 yuan Broad-leaved trees I. Crops Diameter 26-30cm 200 yuan Diameter 11-15cm 150 yuan Walnut Diameter 21-25cm 1000 yuan Flowering shrubs Crown diameter <1m 100 yuan Height 1m or less 27 yuan Evergreens Height 2-3m 45 yuan Height 1-2m 40 yuan 2. Trees Flowering shrubs Height 3m or above 72 yuan Crown diameter Prickly ash 150 yuan 50-100cm Diameter 5cm or less 27 yuan Other trees Diameter 10-20cm 45 yuan Deciduous arbors Diameter 25-30cm 40 yuan Height 1m or less 22 yuan Scattered shrubs Height 2-3m 47 yuan Garden walls Lattice 35 yuan/m2 12, unplastered 30 yuan/m2 Brick walls 24, unplastered 60 yuan/m2 1. Walls and 37, unplastered 80 yuan/m2 grounds 10cm 25 yuan/m2 Cement grounds 20cm 50 yuan/m2 II. Ground 30cm 70 yuan/m2 attachments Cooking ranges / 100 yuan Simple houses Height 2.2m or less 50 yuan/m2 Simple sheds / 100 yuan 2. Other Septic tanks / 1500 yuan Pumped wells / 100 yuan/m2 Biogas tanks / 3000 yuan

2) Actual By the end of June 2019, construction had not begun, nor had crop compensation. The PMO promises that the planned compensation rates will apply, and any new rate issued during project

17 implementation will apply. The task force will continue to pay attention to this in future M&E. 4.1.4 Compensation Rates for HD According to the RP approved in June 2016, the Project does not involve HD. Urban-rural water supply involves the demolition of the properties of two entities. The HD compensation rates are based on the Compensation Rates for Acquired Houses and Attachments on Collective Land in Ping’an District (PDG [2013] No.71). See Table 4-3. This project will be compensated according to the replacement price of the house into a new standard, and there is no depreciation. If any new compensation rate is issued during project implementation, such new rate will apply. The task force will continue to pay attention to this in future M&E.

Table 4-3 Compensation Rates for HD in Ping’an District Newness-based house price (yuan/m2) Structure Grade 100% new 90% new 80% new 70% new 60% new 50% new 40% new Concrete / 1046.17 816.56 636.92 496.8 435.8 302.25 209.37 1 687 618.3 549.6 480.9 412.2 343.5 274.8 Masonry 2 654 588.6 523.2 457.8 392.4 327 261.6 concrete 3 625 562.5 500 437.5 375 312.5 250 1 648 583.2 518.4 453.6 388.8 324 259.2 Masonry 2 615 553.5 492 430.5 369 307.5 246 timber 3 592 532.8 473.6 414.4 355.2 296 236.8 1 606 545.4 484.8 424.2 363.6 303 242.4 Earth timber 2 574 516.6 459.2 401.8 344.4 287 229.6 3 545 490.5 436 381.5 327 272.5 218

4.2 Fund Disbursement Process and Progress 4.2.1 Fund Disbursement Process The fund disbursement process of the Project is as shown in Figure 4-1.

Haidong IAs LA PMO managemen t office

Application Signing compensation Approval for approval and resettlement

Fund AHs disbu rseme

Figure 4-1 Fund Disbursement Process

4.2.2 Fund Disbursement Progress By the end of June 2019, LA compensation had not begun, and only an LA agreement had been signed for the Ping’an WWTP Water Reclamation Work (Phase 2). The subproject will permanently acquire 2.73 mu of collective land and 7.01 mu of state-owned land, affecting 12 persons in 3 households in 3 villages in Ping'an Town. A total of 1.4342 million yuan of compensation fees will need to be paid, including 884,300 yuan for land acquisition and 549,900 yuan for young crops and

18 appendages. It is expected that the compensation will be paid in the second half of 2019. See Appendix 4 .

4.3 Evaluation The prevailing LA, crop and ground attachment compensation rates are the same as those specified in the RP, where the LA compensation rates are based on the Uniform Annual Output Values and Location-based Compensation Rates for Land Acquisition (QPG [2015] No.61), and the compensation rates for HD, crops and ground attachments based on the Compensation Rates for Acquired Houses and Attachments on Collective Land in Ping’an District (PDG [2013] No.71). LA compensation has not begun.

19 5 Livelihood Restoration and Resettlement 5.1 Restoration Measures for LA 5.1.1 Planned The objective of resettlement of the Project is to develop an action plan for restoration and restoration for those affected by the Project so that they benefit from the Project, and their living standard is improved or at least restored to the pre-project level. The following livelihood restoration will be taken: 1) Use the LA compensation to expand cultivation and stockbreeding. a) Soil quality improvement: Some AHs will improve soil quality and grow commercial crops after receiving compensation, with an average annual investment of 2,000 yuan/mu, expected annual income of 1,200 yuan/mu and annual net income of 800 yuan/mu. b) Commercial crop cultivation, such as greenhouse alfalfa cultivation, with an average annual investment of 5,000-10,000 yuan/mu, average annual income of 8,000-20,000 yuan/mu and annual net income of 3,000-10,000 yuan/mu. c) Stockbreeding, such as chickens, cattle and sheep, where the annual cost of a head of sheep is 400-500 yuan, expected annual income 800-1,000 yuan, and annual net income 400-500 yuan 2) Employment The Haidong PMO will make jobs first available to the APs. 251 and 169 unskilled jobs will be generated at the construction and operation stages respectively, including forest cultivation and maintenance, landscaping and cleaning. About 600 APs will be trained for such jobs. 3) Nonagricultural operations / doing business Over 60% of the sample households’ income is from nonagricultural operations, and about 72% of the sample households wish to restore income through nonagricultural or independent operations. Women wish to make handicrafts at home, with monthly net profits of 2,000-5,000 yuan, and market information and labor skills for handicrafts will be provided by the local government. 4) Free skills training Households choosing agricultural restoration measures will be provided with agricultural skills training, such as chicken and sheep breeding, and the cultivation of alfalfa and other commercial corps. In addition, skilled farmers will be invited to share experience and skills with other APs. Nonagricultural skills training covers cooking, house decoration, handicrafts, car repair, etc. About 200-300 APs will need such training, which will be offered by the labor and social security bureau. 5) Endowment insurance for LEFs LEFs with a per capita cultivated area of less than 0.3 mu after LA will be included in endowment insurance for LEFs, and men having attained 60 years and women having attained 55 years will receive pensions. In Ping’an and Ledu Districts, the Interim Measures of Qinghai Province for Endowment Insurance for Land-expropriated Farmers (QPGO [2012] No.336), and Notice of the General Office of the Qinghai Provincial Government on Paying Endowment Insurance Premiums for Land-expropriated Farmers (QPGO [2013] No.23) still apply. 1) Insured: Registered farmers (including reservoir migrants) with a remaining per capita cultivated area of less than 0.3 mu after the acquisition of rural collective land according to law, having attained 16 years and not covered by basic endowment insurance for urban employees in urban planning areas of our province may cover endowment insurance for LEFs. 2) Fundraising: The endowment insurance fund for LEFs consists of individual contribution,

20 collective subsidy and government subsidy: ①Individual contribution: An LEF will pay premiums for 15 years based on 35% of the local MLS rate for urban residents at a time. For a new LEF, such premiums will be deducted from land compensation fees and resettlement subsidies at a time. ②Government subsidy: A government at or above the county level implementing LA will grant a subsidy to each LEF to be insured at 15% of the local MLS rate for urban residents, to be withdrawn by the local finance department for 15 years from land income at a time. Each insured eligible for receiving pensions will receive a basic pension subsidy of 120 yuan per month from the local government. ③Collective subsidy: Eligible village collectives may grant a subsidy to the insured as determined by the village committee democratically. 3) Eligibility for receiving pensions and benefit: The insured will receive pensions monthly from 60 years. The pension will consist of a basic pension and an individual account pension, where the basic pension will be 120 yuan, and the individual account pension will be the balance of the individual account divided by 139 (this is the same as the prevailing factor for the individual account of basic endowment insurance for urban employees). 5.1.2 Actual By the end of June 2019, LA had not begun, so the livelihood restoration measures were under preparation and had not been implemented. The task force will pay attention to this in future M&E.

5.2 Restoration Measures for Temporary Land Occupation 5.2.1 Planned The principles for restoration are as follows: 1) The AHs will have priority, so that not only the APs will obtain job opportunities to increase household income, but also the quality of land restoration will be ensured. If the AHs or the village collective are/is unwilling to restore the temporarily occupied land itself, such land will be reclaimed by the IA. 2) Strict measures will be taken during construction to protect surface soil and avoid any irrecoverable impact. During excavation, surface soil (recommended thickness 30-50cm) will be collected and stored separately, and measures taken to prevent water loss and soil erosion. After construction, subsurface soil will be backfilled first, then surface soil will be spread on the surface evenly, and the ground leveled to reduce the impact on the quality of cultivated land. Land that hardens during construction will be plowed immediately after construction to restore the loose state. In general, the temporarily occupied construction land will be restored timely, and the relevant costs will be included in the construction budget. The temporarily occupied collective cultivated land and woodland will be restored timely without affecting cultivation. Restoration will be supervised by the Haidong PMO, owners, and local land and resources bureaus together with the affected village collectives and AP representatives. In addition, the compensation will be paid to the affected proprietors at the rates specified in the RP. 5.2.2 Actual Temporary land occupation for the Project is caused mainly by material stockyards, mixing yards, temporary sheds and pipeline construction. By the end of June 2019, construction had not begun, and no restoration measure had been implemented. The PMO promises to implement the planned restoration measures. The task force will pay attention to this in future M&E.

21 Table 5-1 Minority Population in the Direct Beneficiary Area (unit: person, %) Minority Tu Hui Tibetan Han Gross Component(s) District Township township or Populati Populati Populati Populati population Percent Percent Percent Percent involved not on on on on Eco-environment Protection and Nianbo Town No 69522 1188 1.71 3369 4.85 1252 1.80 61843 88.95 Restoration, River Rehabilitation Ledu Gaodian Town No 8918 215 2.41 73 0.82 64 0.72 8496 95.27 River Rehabilitation Yurun Town No 17056 354 2.08 199 1.17 257 1.51 15076 88.39 River Rehabilitation Hongshui Town No 19251 108 0.56 91 0.47 91 0.47 18889 98.12 River Rehabilitation Gaomiao Town No 25063 248 0.99 1480 5.91 104 0.41 228952 91.35 River Rehabilitation River Rehabilitation, Eco-environment Ping’an Town No 51770 1022 1.97 2644 5.11 1414 2.73 46033 88.92 Protection and Restoration, Urban Water Reclamation River Rehabilitation, Eco-environment Xiaoxia Town No 13230 156 1.18 1033 7.81 63 0.48 11886 89.84 Protection and Ping’an Restoration Sanhe Town: Sanhe, Xinzhuang, Binglingshan, Dongcun, Xicun, Urban-Rural Water Luotuobao, Zhangqizhai, No 9978 76 0.76 73 0.73 577 5.78 9252 92.72 Supply Zhuangke, Sitai, Wanzi, Xin’an, Zhongjia and Tiaoling Villages Shihuiyao Xiang: Liming, Yima, Urban-Rural Water Shihuiyao, Yaozhuang and Yes 2212 11 0.44 1092 49.31 370 16.73 739 33.41 Supply Shiguasi Villages Total / 217000 3378 1.56 10054 4.63 4192 1.93 195109 89.91 \ Source: data of the sixth national census in 2010, and statistics of ethnic and religious affairs bureaus

Table 5-2 Statistics of Ethnic Minority Development Projects in Ping’an District in 2018 Funding source (0,000 yuan) Project Local Venue Scope Progress Period Total Central finance finance Vegetable greenhouse 92.19 92.19 Hedong Village, Construction 57 vegetable Ongoing 2018

22 Funding source (0,000 yuan) Project Local Venue Scope Progress Period Total Central finance finance construction in Bazanggou Bazanggou Xiang, greenhouses in 5 villages Xiang etc. Road construction in Earth excavation 2,430 m3, Qingquan Village, Qingquan Village, 60.25 60.25 construction of an access bridge, and Completed but not accepted 2018 Bazanggou Xiang Bazanggou Xiang hardening of pavements of 600 m2 Archery range Brick paving for 220 m2, and reconstruction in Shangguo’er Village, construction of wood pavilions 15.89 15.89 Completed 2018 Shangguo’er Village, Bazanggou Xiang Bazanggou Xiang Brick paving for 220 m2, and Archery range Yazha Village, construction of wood pavilions, repair reconstruction in Yazha 29.98 29.98 Completed 2018 Shagou Xiang of a subsiding area of 600 m3, and Village, Shagou Xiang construction of a 25m enclosing wall Road maintenance in Repair of pavements of 5,913 m2, Jiaojia Village, Jiaojia Village, Gucheng 136.38 136.38 and treatment of subsiding roadbeds Completed 2018 Gucheng Xiang Xiang of 522 m2 Archery range construction Brick paving for 658 m2, and Zhamen Village, in Zhamen Village, 47.09 47.09 construction of wood pavilions Completed 2018 Gucheng Xiang Gucheng Xiang Brick paving for 463.2 m2, hardening for 1,406 m2, installation of 10 solar Square construction in Xinzhuang’er Village, streetlamps, construction of a 118m Xinzhuang’er Village, 100.4 100.4 Completed 2018 Gucheng Xiang wood gallery frame, installation of a Gucheng Xiang set of fitness apparatus, and square landscaping Installation of 414 solar streetlamps Solar streetlamp 15 poor villages in the 227.82 227.82 for 15 poor villages in Sanhe Town, Completed 2018 construction district Shihuiyao Xiang, etc.

23 5.3 Restoration Measures for HD 5.3.1 Planned According to the RP approved in June 2016, the Project does not involve HD. 5.3.2 Actual Urban-rural water supply involves the demolition of the properties of two entities (Wenzukou and Fatai Reservoir Management Stations), both affiliated to the Ping’an District Water Bureau. These two entities will not be relocated, and will be subject to cash compensation. The compensation rates will be based on the Compensation Rates for Acquired Houses and Attachments on Collective Land in Ping’an District (PDG [2013] No.71). The 27 affected workers will be employed by the Ping’an District Water Bureau. Since HD has not begun, the task force will track actual resettlement measures in subsequent M&E.

5.4 Restoration Measures for Vulnerable Groups 5.4.1 Planned Supporting measures will be taken for the vulnerable population affected by the Project, including: 1) Priority in employment: Vulnerable residents able and willing to work will have priority in receiving jobs generated by the Project or public welfare jobs. 2) Skills training: Skills training on housekeeping, computer, cultivation, stockbreeding, etc. will be offered to vulnerable residents able and willing to work to help them get employed. 5.4.2 Actual By the end of June 2019, construction had not begun, and no restoration measure had been implemented. The task force will pay attention to this in future M&E.

5.5 EMDP Implementation The scope of EMDP implementation M&E is the 5 subcomponents that are still within the Project and 100% funded by ADB, namely the Ping’an segment, Yizhou wetland, the Ping’an WWTP Water Reclamation Work (Phase 2), urban-rural water supply, and Ledu Landfill Reconstruction and Expansion. Excluding the 4 subcomponents that are still within the Project but have been completed, namely the Ledu urban segment, Ledu non-urban segment, riverfront shelter forest, and mountain boundary shelter forest construction in Ping’an District.. 5.5.1 Profile of Local Ethnic Minorities The Project involves 18 villages/communities in 10 townships in Ledu and Ping’an Districts, which are Nianbo, Gaodian, Yurun, Hongshui and Gaomiao Towns in Ledu District, and Ping’an, Xiaoxia and Sanhe Towns, and Shihuiyao Xiangs in Ping’an District, and an affected population of 217,000, including 195,109 Han people, accounting for 89.91%. 10,054 Hui people, accounting for 4.63%; 4,192 Tibetans, accounting for 1.93%; and 3,378 Tu people, accounting for 1.56%. In the direct beneficiary population: 1) Only the Urban-Rural Water Supply components involves a minority population living centrally of 370 in 3 Tibetan villages in Shihuiyao Xiang (Yima, Shiguasi and Shihuiyao), account for 40.69%, 85.41% and 34.40% of the resident populations of these 3 villages respectively, in which Mayi Village has 83 households with 231 persons, including 94 Tibetans, accounting for 40.69%; Shihuiyao Village has 76 households with 343 persons, including 118 Tibetans, accounting for 34.40%; and Shiguasi Village has 40 households with 185 persons, including 158 Tibetans, accounting for 85.41%; 2) The remaining minority population involved in the Project lives in a scattered manner in Nianbo, Gaodian, Yurun, Hongshui and Gaomiao Towns in Ledu District, and Ping’an, Xiaoxia and Sanhe Towns in Ping’an District.

24 Table 5-3Minority Population in the Direct Beneficiary Area (unit: person, %)

Tu Hui Tibetan Han Population Population Population Population District District

Minority Percent Percent Percent Percent Gross Township townshi Component(s) involved population p or not

Eco-environment Protection Nianbo Town No 69522 1188 1.71 3369 4.85 1252 1.80 61843 88.95 and Restoration, River

Ledu Ledu Rehabilitation Gaodian Town No 8918 215 2.41 73 0.82 64 0.72 8496 95.27 River Rehabilitation Yurun Town No 17056 354 2.08 199 1.17 257 1.51 15076 88.39 River Rehabilitation Hongshui Town No 19251 108 0.56 91 0.47 91 0.47 18889 98.12 River Rehabilitation Gaomiao Town No 25063 248 0.99 1480 5.91 104 0.41 228952 91.35 River Rehabilitation River Rehabilitation, Eco-environment Protection Ping’an Town No 51770 1022 1.97 2644 5.11 1414 2.73 46033 88.92 and Restoration, Urban Water Reclamation River Rehabilitation, Xiaoxia Town No 13230 156 1.18 1033 7.81 63 0.48 11886 89.84 Eco-environment Protection and Restoration Ping Sanhe Town: Sanhe, Xinzhuang, Binglingshan, ’ an an Dongcun, Xicun, Luotuobao, Zhangqizhai, No 9978 76 0.76 73 0.73 577 5.78 9252 92.72 Urban-Rural Water Supply Zhuangke, Sitai, Wanzi, Xin’an, Zhongjia and Tiaoling Villages Shihuiyao Xiang: Liming, Yima, Shihuiyao, Yes 2212 11 0.44 1092 49.31 370 16.73 739 33.41 Urban-Rural Water Supply Yaozhuang and Shiguasi Villages Total / 217000 3378 1.56 10054 4.63 4192 1.93 195109 89.91 \ Source: data of the sixth national census in 2010, and statistics of ethnic and religious affairs bureaus

25

5.5.2 EMDP Implementation According to the social and gender action plan of the project, the external monitoring unit conducts interviews with key persons and collects project-related materials from the PMO to assess the progress of the project ’s social and gender plan implementation. There are 4 outputs and 18 activities in the social and gender action plan. Since the project has not started, the activities have not yet been implemented..

26 Table 5-4 EMDP Monitoring Matrix

Proposed action Monitoring indicator Monitoring result 1. A. Mitigation of construction impacts and safe construction  Using noise reduction techniques to control noise;  Techniques used during construction, and  Not started relevant standards  Frequency of overnight construction  Strengthening construction site management, and establishing  Construction safety management  Not started entry registration and parking management systems;  Avoiding minority religious activities or festivals (e.g., not conducting  Comments of local residents, especially  Not started construction within 500m from a mosque during Friday worships); minority residents, on contractors and workers  Setting up relevant signs in nearby communities  Number of signs  Not started  Including construction safety provisions in construction contracts  Inclusion of such provisions in contracts  Not started B. AIDS and other infectious diseases  Including provisions on the prevention and treatment of AIDS  Inclusion of such provisions in tender  Not started and other infectious diseases in the tender documents documents  Conducting publicity an d education on public health and AIDS  Frequency of such activities and number of  Not started prevention for the construction staff participants  Developing health protection measures for the construction  Induction physical checkup for workers;  Not started staff  Establishment of health files  Distributing brochures, posters, books, etc. on AIDS  Relevant publicity activities of the center for  Not started prevention and sexual harassment disease control C. Publicity and education on employment, labor protection, environmental protection and water conservation  135 skilled and 404 unskilled jobs will be generated at the  Proportion of APs doing unskilled jobs under  Not started construction stage, and 162 skilled and 331 unskilled jobs at the the Project operation stage (maintenance, cleaning, landscaping, etc.).  Men-times of vulnerable groups (women and the poor) doing unskilled jobs under the Project  Releasing employment information timely by various means  Mode of release of job opportunities  Not started  Complying with state and local regulations and policies  Compliance with state and local regulations  Not started and policies D. Inclusive public participation  Ensuring that local residents participate in publicity and education  Frequency of such activities, number of  Not started

27 on environmental protection and water conservation participants, and percentage of minority residents and women  Conducting publicity on environmental protection and water  Number and types of schools involved, and  Not started conservation at communities and schools number of participants, where not less than 50% should be minority residents and women  Producing publicity materials and distributing them at communities  Frequency of such activities, number of  Not started participants, and percentage of minority residents and women  Holding a public hearing on the water supply and solid waste  Frequency of public hearing, number of  Not started treatment rates participants, and percentage of minority residents and women E. Establishing CESTs  Establishing 6 exemplary community environmental supervision  Frequency of such activities, number of  Not started and education teams (two urban and 4 rural), running for 3 years, participants, and percentage of minority and conducting public awareness development activities in residents and women environmental management, forest protection, water conservation and waste recycling 2. Local Supporting Measures: skills training  Offering local handicrafts training to minority women in Yima,  Frequency of training, number of participants,  Not started Shiguasi and Shihuiyao Villages and percentage of minority residents and women  Establishing a cyclic income generation pattern  Frequency of such activities, number of  Not started participants, and percentage of minority residents and women 3. Project management  Training the PMO and IA staff on the EMDP and SGAP  Types and frequency of training, and number  Not started of participants  Appointing international and domestic social development and  Number of experts, and activities  Not started gender experts  The PMO and IA should appoint dedicated staff members to  Availability of such staff members Not started implement and report EMDP, SGAP and RP implementation.  Collecting data by gender and ethnic group to monitor, evaluate  If data is collected as required  Not started and report EMDP and SGAP implementation.

28

5.6 SGAP Implementation The scope of SGAP implementation M&E is the 5 subcomponents that are still within the Project and 100% funded by ADB, namely the Ping’an segment, Yizhou wetland, the Ping’an WWTP Water

Reclamation Work (Phase 2), urban-rural water supply, and Ledu Landfill Reconstruction and

Expansion, excluding the 4 subcomponents that are still within the Project but have been completed, namely the Ledu urban segment, Ledu non-urban segment, riverfront shelter forest, and mountain boundary shelter forest construction in Ping’an District. 5.6.1 Affected Population The project in Haidong, Qinghai Province involves Nianbo Town, Gaodian Town, Yurun Town,

Shuifeng Town, Gaomiao Town in Ledu District, Ping'an Town, Xiaoxia Town, Sanhe Town, and

Limeyao Town in Ping'an District. (Of which 18 villages). The affected population in the project area is 217,000 and the Han nationality is 195109, accounting for 89.91%. The number of Hui is 10054, accounting for 4.63%; the number of Tibetans is 4,192, accounting for 1.93%; and the number of Tus is 3378, accounting for 1.56%. 5.6.2 affected by land acquisition Population According to the RP approved by ADB in June 2016, 1,460.97 mu of collective land will be acquired for the Project (including 540.87 mu of irrigated land, 207.35 mu of river flat, 470.8 mu of woodland, 121.95 mu of grassland and 120 mu of wasteland), affecting 842 households with 3,112 persons in 49 villages in 8 townships in two districts in Haidong City; 1,416.49 mu of state-owned land (non-farmland) will be occupied; 744 mu of collective land (including 568.8 mu of irrigated land and 175.2 mu of river flat) will be transferred, affecting 736 households with 2,721 persons; 106.82 mu of land will be occupied temporarily, affecting 145 households with 423 persons. The Project will affect 96 vulnerable households with 162 persons. 5.6.3 SGAP Implementation Progress There are 4 outputs and 18 activities in the social and gender action plan. Since the project has not been launched, the social and gender action plan has not yet been implemented.

29 Table 5-5SGAP Monitoring Matrix

Action Monitoring indicator Monitoring result 1. Output 1: River Rehabilitation  Public consultation on the selection of sludge disposal and transport  Number of participants, in which not less than 50% are  Not started sites to minimize negative impacts on nearby communities women  Public awareness development on wetland conservation  Activity type, frequency, number of participants  Not started (gender, ethnic group) 2. Output 2: Eco-environment Protection and Restoration  Publicity and skills training on forest protection and fire  Activity type, frequency, number of participants, in  Not started protection for residents in Ping’an District which not less than 50% are women  Public participation and consultation for residents in Ping’an District,  Residents’ feedback collected, in which not less than  Not started and preparation of a community forest protection handbook 50% are women 3. Output 3: Rural Water Supply and MSW Management Infrastructure Construction  Consultation with local residents on Ledu landfill reconstruction and  Number of participants, in which not less than 50% are  Not started expansion women  Consultation with residents in Ping’an and Ledu Districts on waste  Number and type of schools, number of participants,  Not started bin positions in which not less than 50% are women  Publicity on water conservation and solid waste recycling at  Training material prepared for all groups and age  Not started communities and schools groups  Public hearing on water supply, cleaning and solid waste disposal  Number of participants, in which not less than 50% are  Not started charges women and not less than 40% are low-income residents 4. All Outputs Jobs generated  135 skilled and 404 unskilled jobs at the construction stage  30% of jobs first made available to women, and 15%  Not started to poor and minority residents (baseline data for women: 15%)  162 skilled and 331 unskilled jobs at the operation stage  30% of jobs first made available to women, and 15%  Not started (maintenance, cleaning, landscaping, etc.) to poor and minority residents (baseline data for women: 20%)

30 Publicity on public health and AIDS prevention  Public health and AIDS prevention publicity for construction workers  Training course, number of participants (by gender  Not started and target group)  Distribution of brochure, poster, etc. on AIDS prevention and sexual  Brochure type and number of copies distributed  Not started harassment Establishing CESTs  Establishing 6 exemplary community environmental supervision and  At least 5 members per team, in which 50% are  Not started education teams (two urban and 4 rural), running for 3 years, and women; frequency and type of training, number of conducting public awareness development activities in participants (gender) environmental management, forest protection, water conservation and waste recycling  Evaluating effects of communications on awareness development  Investigated and evaluated by social and gender  Not started and behavior change experts, and included in project progress reports Project Management  Training the PMO and IA staff on the EMDP and SGAP  All staff of the PMO and IA should be trained on the  Not started EMDP and SGAP (including not less than 40% should be women and ethnic minorities) (baseline: 20%).  Appointing international and domestic social development and  2 men-months for international expert and 12  Not started gender experts men-months for domestic expert  The PMO and IA should appoint dedicated staff members to  Number of staff members appointed  Not started implement and report SGAP implementation.  The PPMS will collect data by gender and ethnic group to monitor,  Social development and gender indicators included in  Not started evaluate and report EMDP and SGAP implementation. the PPMS

31 5.7 Evaluation Since the subcomponents have not broken ground, the restoration measures for LA, temporary land occupation and HD, SGAP and SGAP have not been implemented,. The task force suggests that the restoration measures should ensure that the APs benefit from the Project, and their living standard is improved or at least restored.

32 6 Baseline Sampling Survey 6.1 Methods The task force conducted a sampling survey in 5 villages in Ping’an, Xiaoxia, Sanhe, Gaodian and Nianbo Towns affected by this project, including FGDs and key informant interviews. See Appendix 2 . In this sample survey, a total samples of 135 households 572 persons were selected, of which 70% affected households affected by land acquisition and 30% affected non-land acquisition households within the project.. Among them,,including 57 households with 230 persons in Ping’an Town, with a sampling rate of 42.2%; 30 households with 128 persons in Xiaoxia Town, with a sampling rate of 39.5%; 35 households with 145 persons in Gaodian Town, with a sampling rate of 36.5%; and 7 households with 35 persons in Sanhe Town, with a sampling rate of 46.7%. See Table 6-1.

Table 6-1 Distribution of Sample Towns Affected Sampled Sampling No. Subcomponent Town HHs Population HHs Population rate (%) Ping’an 132 562 50 230 42.2 1 Ping’an segment Xiaoxia 76 339 30 128 39.5 Gaodian 96 372 35 145 36.5 2 Yizhou wetland Ping’an 21 86 10 42 47.6 Ping’an WWTP Water 3 Ping’an 3 12 3 12 100 Reclamation Work (Phase 2) 4 Urban-rural water supply Sanhe 15 55 7 35 46.7 Total 5 towns 343 1426 135 572 39.4

6.2 Results 6.2.1 Population The 135 sample households have 572 persons in total, including 284 laborers, 264 women (accounting for 46.15%), 569 Han people and 13 Hui people (accounting for 2.27%), with 4.2 persons per household on average. 6.2.2 Age Structure Among the 572 samples, 187 are aged 16 years or less, accounting for 32.76%; 105 aged 17-39 years, accounting for 18.32%; 82 aged 40-59 years, accounting for 14.26%; and 198 aged above 60 yeras, accounting for 34.66%. See Table 6-2. 6.2.3 Education Among the 572 samples, 161 have received primary school or below education, accounting for 28.08%; 235 have received junior high school education, accounting for 40.84%; 98 have received senior high or secondary technical school education, accounting for 17.27%; and 78 have received junior college or above education, accounting for 13.81%. See Table 6-2.

Table 6-2 Age and Education Distribution of Samples Male Female Total Item N Percent (%) N Percent (%) N Percent (%) Age ≤16 years 92 33.82% 95 31.67% 187 32.76% 17-39 years 50 18.38% 55 18.33% 105 18.32% 40-59 years 42 15.44% 40 13.33% 82 14.26% ≥60 years 98 36.03% 100 33.33% 198 34.66% Subtotal 272 100% 300 100% 572 100%

33 Male Female Total Item N Percent (%) N Percent (%) N Percent (%) Educational level (adults) Primary school or below 77 28.24% 84 27.88% 161 28.08% Junior high school 107 39.41% 128 42.71% 235 40.84% Senior high school / 46 17.06% 52 17.55% 98 17.27% secondary technical school Junior college or above 42 15.29% 36 11.87% 78 13.81% Subtotal 272 100% 300 100% 572 100%

6.2.4 Land Contracting The total contracted land area of the 135 sample households is 652.08 mu, and the per capita contracted land area of the agricultural population 1.14 mu, with annual net income of about 1,100 yuan/mu. The main crops are wheat, potato, rape and vegetables. 6.2.5 Employment Among the 135 sample households, 49 deal with farming mainly, and 85 with nonagricultural operations mainly. Most young people work outside and deal with physical labor mainly. The percentage of nonagricultural employment is 63.53%. 6.2.6 Annual Income and Expenditure The per capita annual income of the sample households is 13,478.54 yuan, per capita annual expenditure 4,747.27 yuan, and per capita annual net income 11,651.32 yuan. See Table 6-3.

Table 6-3 Household Income and Expenditure of Samples Average per Per capita Percent Item household (yuan) (yuan) (%) Cultivation income 6368.61 1516.34 11.25% Operating income 19524.74 4648.75 34.49% Household Wage income 26561.35 6324.13 46.92% income Property income 2655.00 632.14 4.69% Other income 1500.16 357.18 2.65% Subtotal (A) 56609.87 13478.54 100.00% Agricultural productive expenditure (B) 4621.75 1100.42 23.18% Nonagricultural productive expenditure (C) 3052.59 726.81 15.31% Nonproductive expenditure (D) 9223.57 2196.09 46.26% Daily expenses 4940.77 1176.37 24.78% Household Item Educational expenses 2492.32 593.41 12.50% expenditure Medical expenses 1790.48 426.30 8.98% Social security expenses (E) 1252.14 298.13 6.28% Other expenses (F) 1788.49 425.83 8.97% Subtotal (B+C+D+E+F) 19938.53 4747.27 100.00% Per capita net income (A-B-C) 11651.32

34 7 Information Disclosure, Public Participation and Grievance Redress 7.1 Information Disclosure and Public Participation At every stage of resettlement, the Haidong PMO and IA attached great importance to public participation and consultation. At the preparation stage, the Haidong PMO collected comments on the Project by means of newspaper, Web, broadcast, TV, etc. many times. In March 2016, the task force and Ledu District Housing Construction Bureau conducted a field investigation on Ledu landfill reconstruction and expansion in Nianbo Town, Ledu District. In July 2016, the RP and EMDP were disclosed to villagers in the affected towns in Ping’an and Ledu Districts. In October 2016, the design change of the Project was disclosed on the Qinghai economic information website (www.qhei.org.cn ). See Figure 7-3. In April 2018, the LA program was disclosed in Qilidian Village, Nianbo Town, Ledu District for comments. In July 2018, the DSM was conducted in Ping’an Town by the Ping’an District Water Bureau together with villagers. In August 2018, the Haidong PMO, IA and consultants reported on the design change and proposed adjustment, and stated procurement, cost, LA, resettlement and environmental impacts. See Figure 7-6.

Figure 7-1 Public Participation Activities at the Planning Stage

Figure 7-2 RP and EMDP Announcements

35

Figure 7-3 Design Change Announcement

Figure 7-4 LA Announcement

Figure 7-5 DMS

36

Figure 7-6 Guidance by ADB Experts

Table 7-1Main Information Disclosure and Public Participation Activities

# of No. Time Activity Organizer Participants Women participants Field investigation by the Haidong PMO, task force , task force and Ledu 1 2016.3 Haidong PMO Ledu District Housing 20 8 District Housing Construction Bureau Construction Bureau Disclosure of the RP and District housing Haidong PMO, EMDP in the affected construction bureaus, district housing 2 2016.7 towns APs, township 60 43 construction governments, village bureaus officials Online disclosure of the design change 3 2016.10 Haidong PMO Design agency, PMO 25 12 announcement by the Haidong PMO Disclosure of the LA District housing Ledu District program for Ledu landfill construction bureaus, Housing 4 2018.4 reconstruction and APs, township 15 8 Construction expansion governments, village Bureau officials DMS by the Ping’an Water bureaus, land and District Water Bureau Ping’an District resources bureaus, APs, 5 2018.7 30 11 Water Bureau township governments, village officials ADB expert guidance in Municipal development Haidong and reform commission, and finance bureau, 6 2018.8 Haidong PMO 40 23 district water bureaus and housing construction bureaus

7.2 Grievance Redress According to the survey, the existing grievance redress channels in the project area are: 1) Villagers may reflect complaints and suggestions to their village committees, which is the main grievance redress channel; 2) Villagers may reflect complaints and suggestions to their sub-district offices; 3) Villagers may reflect complaints and suggestions to the complaint handling office of the

37 county government. All APs may maintain their rights and interests through the above channels. A grievance redress mechanism has been established to ensure the successful implementation of resettlement. Stage 1: If any AP is dissatisfied with the RP, he/she can file an oral or written appeal to the village committee or sub-district office orally or in writing. In case of an oral appeal, the village committee or sub-district office shall handle such appeal and keep written records. Such appeal should be solved within two weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the municipal water bureau or Ledu / Pingan District Housing Construction Bureau, Ledu / Pingan District Water Bureau, Ledu / Ping’an District Forestry Bureau within one month after receiving such disposition, which shall make a disposition within two weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to the Haidong PMO within one month after receiving such disposition, which shall make a disposition within two weeks. Stage 4: If the AP is dissatisfied with the disposition of Stage 3, he/she file an appeal with the competent authorities level by level in accordance with the Administrative Procedure Law of the PRC for arbitration after receiving such disposition. Stage 5: If the AP is still dissatisfied with the arbitration award of Stage 4, he/she may file a suit in a civil court in accordance with the Civil Procedure Law of the PRC after receiving such disposition. In addition, the APs may file grievances and appeals directly with the external M&E agency, or the legal, disciplinary inspection and complaint handling departments of Ping’an and Ledu Districts.

Municipal / district legal Haidong PMO department External M&E agency Municipal / district disciplinary inspection District PMOs Municipal / district complaint handling Township governments

AHs / village committees

Figure 7-7 Grievance Redress Flowchart The resettlement agencies will appoint staff members to collect and accept grievances and appeals from the APs specifically. See Table 7-2.

Table 7-1 Contact Information for Grievance Redress City / district Agency Name Address Tel No.205 Ping’an Avenue, Ping’an Haidong City Haidong PMO Zhou Ling 15202561243 District Ping’an District Housing Junction of Ping’an Avenue and Wang Xurong 13709734054 Construction Bureau Minhe Road, Ping’an District Ping’an District Ping’an District Water No.14 Huangyuan Street, Ping’an Zhong Hailin 18697212798 Bureau District Ledu District Housing No.11 Binhe South Street, Ledu District Yuan Youxia 18997022369 Construction Bureau Ping’an District

38 City / district Agency Name Address Tel Ledu District Water No.25 Wenhua Street, Ledu Zhou Bin 15709822634 Bureau District

As of this monitoring, a total of 1 complaint has been received, as shown in Table 7-3

Table 7-3 Grievance and Appeals during the Reporting Period

Status of No. Complainant Content of grievance Proposed Solutions Grievance process

Wang Yubao , 2.47mu land of this household Per the negotiation It is still under

affected by PLA to be acquired, but the AH between the IA and AH, it negotiation and

for the component was unsatisfied with th e is agreed to compensa te supposed to be

of Ping’an WWTP compensation standard, as irrigable land once the resolved by end of

Water because he thinks the land to AH can provide related June 2019. 1 Reclamation Work be acquired should be evidence of the land

(Phase 2) irrigable land, not dry land. category, such as land

The compensation standard is register certificate.

quite different between dry

land and irrigable land.

39 8 Findings and Suggestions 8.1 Findings 1) Organizational Structure The organizational structure of the Project is established, the roles and responsibilities of all agencies defined. The Haidong Municipal Government ensures successful project preparation and resettlement by way of organizational setup and capacity building. In addition, the owners, land and resources bureaus, housing construction bureaus, affected township governments and village committees also participate in resettlement. However, the study found that the project office staff is relatively small, and the members of the organization responsible for immigration and social work have some position adjustments, resulting in the problem that the new staff does not understand the project content and ADB's resettlement experience. Practice and related training and learning. 2) Construction and resettlement progress By the end of June 2019, the preliminary design had been approved, but the subcomponents had not broken ground, and LA compensation had not begun. The LA and HD impacts of the subcomponents have varied greatly, while the impacts of temporary land occupation and state-owned land occupation have varied slightly. The main reasons for such variations are as follows: 1) Only cultivated land is included in the RP and feasibility study report, while woodland and waste land is excluded; 2) Measurement is based on the boundary map in the RP and feasibility study report. 3) The former and later statistical bases are different. 4) Urban-rural water supply involves the demolition of the properties of two entities (Wenzukou and Fatai Reservoir Management Stations). 3) Compensation and payment By the end of June 2019, the pumping station of the Ping'an District Reclaimed Water Reuse Project has completed the bidding in May 2019 and signed a land acquisition agreement. A total of 1.4342 million yuan of compensation fees will need to be paid, of which 884,300 yuan for land acquisition and 549,900 yuan for young crops and attachments It is estimated that the compensation will be paid in the second half of 2019, The compensation is directly paid to the affected villagers ’bank card. Compensation standards have not changed from the resettlement plan. Land acquisition, house demolition and compensation for other subprojects have not been carried out. 4) Livelihood restoration By the end of June 2019, LA had not begun, so the livelihood restoration measures had not been implemented. 5) Information disclosure and grievance redress By the end of June 2019, few information disclosure and public participation activities had been conducted, but a sound grievance redress mechanism had been established and disclosed in the project area. The PMO has not received any grievance or appeal to date.

8.2 Suggestions 1) Organizational Structure The Haidong PMO should strengthen coordination with the resettlement agencies, and the new staff should get familiar with the Project and ADB’s resettlement policy as soon as possible. In addition, the resettlement agencies should have more full-time staff and vehicles to promote implementation. 2) Compensation and payment The compensation rates should be based strictly on the Uniform Annual Output Values and

40 Location-based Compensation Rates for Land Acquisition (QPG [2015] No.61), Compensation Rates for Acquired Houses and Attachments on Collective Land in Ping’an District (PDG [2013] No.71), and Compensation Program for Acquired Houses and Attachments on Collective Land in Ledu District (HRACO [2013] No.53). If a district has a rate of its own, such rate shall be higher than the corresponding provincial rate. If any new compensation rate is issued during project implementation, such new rate will apply. 3) Livelihood restoration The resettlement agencies should offer skills training to LEFs actively to help them restore livelihoods, especially for vulnerable groups. In addition, eligible LEFs should cover endowment insurance. 4) Information disclosure and grievance redress The resettlement agencies, affected township governments and village committees lack awareness of public participation and information disclosure, and should conduct disclosure, publicity and mobilization properly, and keep minutes of meetings.

41 Appendixes Appendix 1 Fieldwork Photos

FGD at the Haidong PMO Field investigation on Ledu landfill reconstruction and expansion

Interview at the Ledu District Housing Interview in Nancun Village Construction Bureau

Ping’an segment Wetland

42 Appendix 2 Interview Minutes Date June 3-4, 2019 Venue Haidong PMO Organizer Haidong PMO Participants Director-general Zhou, Engineer Wang and Engineer Zhu of the Haidong Municipal Water Bureau, task force Topics Updates of the River Rehabilitation, Eco-environment Protection and Restoration, and Rural Water Supply and MSW Management Infrastructure Construction components Key points The Ping’an WWTP Water Reclamation Work (Phase 2) mainly includes the construction of 3 and results pump stations and a water supply pipeline. Bidding for the pump stations has been completed, and construction is about to begin. Bidding for the other works is expected to be completed in mid June. LA for the pump stations involves 3 households, in which two have signed LA agreements, and the other is in negotiation. The compensation has not been paid. The LA compensation rate has not changed. The LA area for the Ping’an segment of River Rehabilitation is 135 mu in the RP (2016) and 337 mu in the 2019 survey. The LA area has increased greatly because the former survey was rough. Photo

Date June 10, 2019 Venue Home of Xing Shengyuan, a villager of Nancun Village Organizer PMO, Ping’an District Housing Construction Bureau Participants Villager Xing Shengyuan, Engineer Wang of the Haidong Municipal Water Bureau, Ping’an District Housing Construction Bureau, task force Topics Public participation, socioeconomic survey, livelihood restoration Key points 1. Basic information: His family has 6 members. His elder son works outside, his daughter is and results at junior high school, and his younger sister and her son live with him. The main income source is his and his wife’s part-time employment, with a daily pay of 100 yuan. The acquired land is used for wheat cultivation mainly, with net income of 300-400 yuan/mu. 2. LA area: About 2 mu of land of his family will be acquired for a pump station. 3. Employment training: Employment training has not begun, because LA and compensation have not begun; the Ping’an District Employment Bureau will offer employment training on hand-drawn noodles, cooking, driving, etc. 4. Information disclosure: He is aware of the LA compensation rate. The acquired land was marked on spot by the government. 5. Suggestions: He expects that the acquired land to be close to the south or north side of his land, otherwise he will have difficulty in cultivation.

43 Photo

Appendix 3 Land Approval Documents

Opinion on site selection

Approval of the preliminary land examination

Approval of the feasibility study report

44

Approval of the preliminary design

Appendix 4 LA Agreement for the Ping’an WWTP Water Reclamation Work (Phase 2)

Appendix 5 LA Announcement for Ledu Landfill Reconstruction and Expansion

45

46