RESETTLEMENT PLAN

WEIHUI WATER SUPPLY PROJECT

UNDER HENAN WASTEWATER MANAGEMENT AND WATER SUPPLY SECTOR PROJECT

IN THE

PEOPLE’S REPUBLIC OF CHINA

Weihui Water Supply Co., LTD April 2005

THIS IS NOT AN ADB BOARD APPROVED DOCUMENT

Endorsement Letter of the Resettlement Plan

Weihui City Water Supply Limited Company has prepared the resettlement plan for Asian Development Bank (ADB) financed water supply project in our county. This resettlement plan fully complies with requirements of the relevant laws, regulations and policies of People’s Republic of China and Henan Province as well as complies with ADB’s policy on involuntary resettlement.

Weihui City Government hereby confirms the content of this resettlement plan and will guarantee the temporary land acquisition, compensation and relocation budget being provided according to the provisions of this resettlement plan. This resettlement plan is based on the feasibility study report and the initial surveys. If the final implemented engineering works are different from what have been described in the feasibility study report and that will cause the substantial impact on the resettlement plan, this resettlement plan should be future modified and approved by ADB before its implementation.

Weihui People’s Government

March 28, 2005

2 ABBREVIATIONS

RP Resettlement Plan APs Affected Persons ADB Asian Development Bank PMO Project Management Office TA Technical Assistance EA Executing Agency IA Implementing Agency RIB Resettlement Information Brochures TOR Terms of reference WWTWSP Henan Wastewater Treatment and Water Supply Project LAO Land Acquisition Office RRO Resettlement and Relocation Office MEA Monitoring and Evaluation Agency DI Design Institute M&E Monitoring and Evaluation WS Water Supply WWT Wastewater Treatment PRC People’s Republic of China AAOV Average Annual Output Value RO Resettlement Office WIPS Water Intake Pump Station GOC Government of China PRLG Project Resettlement Leading Group (PRLG)

3 Table of Contents

Endorsement Letter of the Resettlement Plan ...... 2 ABBREVIATIONS ...... 3 Executive Summary ...... 7 1. Introduction and Project Description ...... 9 1.1. Background of The Project...... 9 1.1.1. Brief Introduction of Weihui ...... 9 1.1.2. Economic situation ...... 9 1.1.3. Outline of Urban Planning ...... 9 1.1.4. Natural Conditions ...... 9 1.1.5. Necessities of the Project...... 10 1.2. The Overview of the Project ...... 11 1.2.1. Geographical Position of the Project ...... 11 1.2.2. Major Construction Components of the Project...... 11 1.2.3. Project Implementation Schedule...... 12 1.2.4. The Socioeconomic Benefits of the Project...... 12 1.3. The Scope of Project Impact ...... 12 1.3.1. Land Occupation for Water Intake Pump Stations (WIPS) ...... 12 1.3.2. Permanent Land Acquisition...... 12 1.3.3. Temporary Land Use ...... 12 1.3.4. The Affected Persons (APs) of the project ...... 13 1.3.5. The Scattered Trees and Graves ...... 13 1.3.6. Infrastructures and Special Facilities ...... 13 1.4. Preparation of Resettlement Plan...... 14 1.4.1. Foundation and Objectives for RP Preparation ...... 14 1.4.2. Methodology of RP Preparation ...... 14 2. Socioeconomic Background of the Affected Areas...... 14 2.1. Socioeconomic Situation of the City...... 14 2.2. Socioeconomic Information of the Affected Towns and Villages ...... 14 2.3. Basic Economic Condition of Affected Households...... 15 3. Project Impacts...... 18 3.1. Land Acquisition and Resettlement(LAR) Impacts...... 18 3.2. Measures to Avoid or Minimize Land Acquisition ...... 19 3.2.1. Measures to Reduce Land Acquisition During Design Phase ...... 19 3.2.2. Measures to Avoid Contingent Land Acquisition and Resettlement during Construction Phase...... 19 3.3. Method for Detailed Measurement Survey...... 19 3.4. Analysis of Impact ...... 19 4. Legal and Policy Framework...... 20 4.1. Referential National/Local LAR Laws & Regulations ...... 20 4.2. ADB’s Policy on Involuntary Resettlement ...... 21 4.2.1. Eligibility and Rates of Compensation...... 22 4.2.2. Compensation Rates of the Project...... 22 4.2.3. Compensation Eligibility and Entitlements...... 24 5. Income Restoration and Rehabilitation Measures ...... 27 5.1. Resettlement Strategy ...... 27 5.1.1. Resettlement Objectives...... 27 5.1.2. Principles of Resettlement Plan(RP) ...... 27 5.2. Economic Rehabilitation Plan...... 27 5.2.1. Task of Economic Rehabilitation...... 27 5.2.2. Analysis of the Environmental Capacity ...... 28 5.2.3. Rehabilitation Plan for Agriculture ...... 28 5.2.4. Income Rehabilitation Measures for Affected Households ...... 28

4 6. Institutional and Organizational Structure ...... 29 6.1. Organizations Involved in the RP ...... 29 6.2. Institution Responsibilities ...... 29 6.3. Staffing for Resettlement Agencies...... 31 6.4. Institutional Reinforcement Measures ...... 31 7. Public Participation and Consultation...... 32 7.1. Public Participation...... 32 7.1.1. Public Participation during Project Preparation ...... 32 7.1.2. Public Participation During the Preparation of the RP...... 32 7.2. Grievance Procedure ...... 36 7.2.1. Possible Grievances and Solutions ...... 36 7.2.2. Grievance Channels and Procedures...... 36 8. Monitoring and Evaluation (M&E) ...... 37 8.1. Internal Monitoring...... 37 8.1.1. Objectives and Tasks...... 37 8.1.2. Agencies and Staff...... 37 8.1.3. Monitoring Indicators ...... 37 8.1.4. Implementation Procedures...... 37 8.2. Independent External Monitoring and Evaluation...... 38 8.2.1. Objectives and Tasks...... 38 8.2.2. Main indicators for Monitoring and Evaluation...... 38 8.2.3. Monitoring and Evaluation Methods ...... 38 8.2.4. Work Procedures...... 39 8.2.5. Independent Monitoring and Evaluation Report on Resettlement ...... 39 9. Resettlement Budget...... 41 9.1. Overall Budget of the Project ...... 41 9.2. Compensation Principles...... 42 9.3. Flow of Fund...... 42 9.4. Fund Management and Audit ...... 42 10. Implementation Arrangements and Schedule ...... 43 10.1. Principles of Resettlement Implementation Schedule ...... 43 10.2. Resettlement and Relocation Schedule ...... 43 Appendix 1 Social and Economic Conditions of Affected Villages...... 45 Appendix 2 Resettlement Information Booklet for Weihui Water Supply Project ...... 63 Appendix 3 Terms of Reference for Independent External Monitor ...... 66 Appendix 4 Project Location Map...... 68

5

Table

Table 1-1 Villages & Numbers of Households affected by Temporary Land Acquisition..... 13 Table 1-2 Project Impact on Scattered Trees & Graves ...... 13 Table 2-1 Economic Conditions of Households Affected by Permanent Land Acquisition .16 Table 2-2 Socioeconomic Situations of Persons Affected by Temporary Land Acquisition 17 Table 3-1 Summary of permanent land acquisition...... 18 Table 3-2 Summary of Temporary Land Acquisition ...... 18 Table 4-1 Average Annual Output Value (AAOV) of the Cultivated Land ...... 23 Table 4-2 Compensation Rates for Permanent Land Acquisition ...... 23 Table 4-3 Compensation Rates for Temporary Land Use...... 23 Table 4-4 Compensation Standards for damaged assets on land acquired...... 24 Table 4-5 Compensation Standards for damaged assets on land acquired...... 24 Table 4-6 Compensation Standards for Affected Urban Road ...... 24 Table 4-7 Entitlement Matrix ...... 25 Table 6-1 Staffing needs for LAR activity ...... 31 Table 7-1 Summary of Survey Result of Public and Affected Households for Permanent Land Acquisition and Relocation...... 34 Table 9-1 Land Acquisition and Resettlement Budget for Weihui WSP ...... 41

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Executive Summary

A. Background and Impacts Assessment

1. The Weihui Water Supply Plant will be constructed to the northwest of Weihui County under the jurisdiction of Nanling village, Shibaotou township. It is about 500 meters away from the water resource site-the Tagang reservoir, which was set up in 1958. The site is on the southwest edge end of mountain Taihang and is 90 meters long from the west to the east and 150 meters long from the south to the north, totaling 13,500 square meters (adding up to 20.24 mu), in which water treatment structures occupy an area of 1437 square meters, with a construction area of 1631 square meters. The plant is adjacent to roads in the north, Donggou village to the east , Tagang village to the west , and piedmont slope and the bottomland of Canghe to the south. the water transfer system is 16.5 kilometers (the main pipe from the waterworks to the urban area), along the line, from the north to the south it involves Shibaotou, Andu and Chengjiao towns, and 13 villages. The design capacity of water supply project of Weihui County is 30,000m3/d. 2. The Project includes water abstraction (the main facility are submersible water abstraction pumps); raw water conveyance (two d500 pipelines of reinforced concrete each 500 meters long); water treatment plant (the major facilities and structures are apartments for filling chlorine and medicine, the pipeline static mixer, wing flat partition reaction pool and contact wadding of static quiet congeal oblique board sedimentation basin and rainbow inhale filter and clear pond etc., as well as other affiliated supplemental facility) and a water distribution network (this includes 16.5 kilometers of d800 reinforced concrete water conveyance pipeline, 14 kilometers of d400 to d600 nodular cast iron pipe, 20 kilometers of d200-d300UPVC pipeline). In addition power supply and communications facilities to serve the new water treatment plant are required.

3. The construction of water supply plant will need permanent land acquisition of 20.24 mu, all of which are collectively-owned farmland, about 484.36 Mu of land will be temporarily occupied for the pipeline networks of water supply project. The affected persons by the water supply project are simply those who are actually affected by land acquisition and there is no demolition involved. Through on-site survey, 3720 people are to be affected by the project.

B. Policy Framework and Entitlements

4. This Resettlement Plan (RP) has been prepared in accordance with the applicable laws of the Government of China and ADB’s resettlement policy and guidelines for involuntary resettlement. The main laws and policies refer to in this RP including: i) Land Administration Law of the PRC; ii) Methods of Land Acquisition Announcement by Land Resources Administration;3) Henan Provincial Management Guidelines for Implementation of the Land Administration Law of PRC;4)Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration;5)Urban House Demolition Management Regulation of PRC; and Urban House Demolition Management Regulations of Henan Province. 5. Compensation standards for all assets and urban roads will be determined according to the full replacement value for the lost assets and the compensation money will be disbursed before the assets are acquired or roads are occupied. The compensation rate for permanent land acquisition is CNY 24,600/mu for paddy field, CNY 20,000/mu for wheat spanking Ground. In addition, compensation rates for grow-up trees and graves are

7 CNY200-100/tree and CNY120/set, and that for urban roads including asphalt roads, concrete roads, pavements and others is CNY120/m2, CNY240/m2, CNY60/m2 and CNY20/m2 respectively.

C. Rehabilitation and Income Restoration

6. All affected persons will be compensated and provided with relocation assistance as set out in the project entitlement matrix in this RP. During Project implementation, efforts will be made to further minimize the land acquisition and resettlement impacts. 7. The income restoration and rehabilitation measures has been drafted in this RP according to the local economic situation and the purpose of them is to guarantee the living standards and livelihood of the affected persons equal or better than the ones before the project. These income restoration and rehabilitation measures have been developed in consultation with all affected persons and they have reflected the most practical ways for the easy implementation during the project.

D. Institutional Arrangements

8. The institutional framework for managing land acquisition and resettlement activity and a detailed budget have been included in RP, which will enable the local IA fulfil its responsibilities specified within RP. Weihui County Government has established a leading group to supervise all the key activities involving land acquisition and resettlement and an office under the leading group has been created with the staff from IA and the other concerned local agencies for daily administration and implantation of resettlement plan.

E. Public Consultation and Disclosure

9. The public participation and consultation is an important step during the preparation of resettlement plan. These activities have been undertaken during the different stages of project preparation. The information regarding the project and possible impacts has been wildly disseminated among the affected persons and the resettlement information booklet has been distributed to the affected persons. The RP in English will be disclosed on ADB website.

F. Complaints and Grievances

10. The grievance procedures have been established in this RP. The purpose of grievance procedures is to solve the possible problems in a timely and effective way and guarantee the project construction and land acquisition could be carried out smoothly. The transparent and effective grievance channel is established for the affected person of the project in addition to existing appeal and grievance channels of local governments at all levels.

G. Monitoring and Reporting

11. An internal and external monitoring and evaluation system has been established in this RP to make sure that the resettlement plan could be carried out smoothly and affected persons could be properly resettled, monitoring will be carried out through the whole process of land acquisition and resettlement for the project.

12. RP implementation will be monitored monthly by the EA. External monitoring will be carried out by an EMA twice a year. The EA will report quarterly to ADB on the progress of land acquisition, resettlement and compensation/rehabilitation tasks while MEA reports will be

8 sent to ADB every six months during the implementation and once a year after completion of resettlement activities for two years. A set of monitoring indicators for both international and external monitoring and evaluation has been set up in this RP.

H. Cost Estimate of Resettlement

13. The estimated compensation and resettlement cost for Weihui Water Supply Project is CNY1.52 million. The compensation and resettlement budget will be adjusted based on the actual measurement of physical losses during the project implementation. The EA will ensure adequate funding for resettlement implementation and will provide resettlement budgets as necessary to meet eventual shortfall that emerges in achieving the resettlement objectives.

1. Introduction and Project Description

1.1. Background of The Project

1.1.1. Brief Introduction of Weihui Weihui locates in the north of Henan Province, to the east of Mountain Taihang, with the east longitude between 113°51′and 114°19′and the north latitude between 35°19′and 35 °42′. As a county-level city under the jurisdiction of Xinxiang Municipality, the city locates at about east longitude of 114°04′ and north latitude of 35°25′, to the southwest 21km far away from Xinxiang Economic District. With Jingguang Railway and No. 107 national highway crossing the northeast city, Jingzhu Expressway passing through from the southeast of planning area, and Xinpu Highway passing through the urban area from the southwest to northeast, it has convenient traffic situation. The city covers a total area of 882 km2 and has a total population of 481,200. The urban area locates at the centre of the county, covering an area of 68.5 square kilometers, with a downtown area of 18.21 square kilometers. The present number of urban dwellers is 128,600, in which 5,000 are migrant people. It is a city dominated by the building materials and light textile industries, with the simultaneous development of agricultural and sideline products processing, aquaculture and tourism industries.

1.1.2. Economic situation The gross domestic product of the county is CNY2.465 billion in 2002, including: CNY 863 million from the primary industry sector, CNY 612 million from the secondary industry sector, and CNY 989 million from the tertiary industry sector. The average disposable income of urban residents is CNY 3228 per annum, the average income of rural residents is CNY 2378 per annum, and the annual local government revenue is CNY 194 million.

1.1.3. Outline of Urban Planning The overall planning of Weihui county has been decided as follows: the urban area being the political, economic and cultural center for the whole municipal administration, dominated by building materials and light textile industry, with the simultaneous development of agricultural and sideline products processing, aquaculture and tourism industries.

1.1.4. Natural Conditions ● Whether Belonging to the continental monsoon climate of the warm temperate zone, it has the four distinctive seasons. It is dry with little rain and frequent temperature changes in spring; in summer, it is scorching with high temperature and concentrated precipitation; in autumn, it is clean and clear with pleasant climate; in winter it is cold with little sunshine, and rarely rains or snows; there is frequent northeast wind in winter and southwest wind in summer. The

9 perennial average rainfall is 633.9 mm every year, and the precipitation seasons are not evenly-distributed but are concentrated mainly in the flood seasons (June-September) with a proportion of 70% rainfall of the whole year, and the precipitation is also strong and there are many rainstorms, and the precipitation amount in the mountain area is more than that in the plain area. The perennial average surface evaporation is 1550 mm, the perennial average temperature is 13.8, the annual average sunshine is 2,446.9hours, and the perennial average frost-free period is 210 days.

● River system Weihui county belongs to the Haihe river basin, River Wei and Communism Canal pass through the urban area in parallel to each other. River Mengjiang in the west flows into River Wei through urban area from the south to the west then to the north. As an artificial canal for flood discharge, the Communism Canal controls a drainage area of 6403 square kilometers, with a design flow of 200 cubic meters per second and a flood-carrying capacity of 1500 cubic meters per second, it can resist a once-in-20-year flood. Except the short time carrying flood in the rainy season, normally, it is almost dry. River Wei and the eastern River Mengjiang are responsible for flood discharge of upper reaches, in addition to functioning for return of irrigation water from People--Winning Canal, its controlling drainage area being 826 square kilometers.

The urban underground water flows from the northwest to the southeast and its setting depth is separated by Jingguang railway: the setting depth west of Jingguang railway is 3-20 meters, hydraulic grade between 1.5 ‰ and 1.8 ‰. The runoff condition is good, but its lateral seepage is bad and its degree of rich water is relatively worse: the setting depth east of Jingguang railway is 3-6 meters, and its hydraulic grade tends to be zero, forming current ripple district, and the impregnation of surface water is high making it a rich water district.

● Earthquake and geology The urban project geology is separated by the communism canal to divide into two layers, north of which is formed by flood of the quaternary system in kainozoic, mainly being gray yellow or pale yellow earth-form sabulous clay, containing few scattering-form little gravels, assuming a dual-structure state. The earth grade is 2.5 ‰ with the bearing capacity being more than 1.2 kg/cm2; the south of the canal belongs to the quaternary system in kainozoic, it is a alluvial plain by Huanghe and River Wei, it is formed by grey yellow sabulous clay, submitting a loose structure, normally bending over with yellow silt and fine-grained layer , the earth grade being between 0.5 ‰ and 0.25 ‰ and the bearing capacity being between 0.6 and 1.2 kg/cm2. According to the national geological structure system picture and the geological structure system picture of Henan province, river Wei locates in the center of two active large faults. In 1977, in its " instructions about the earthquake prone regions in Henan and Hebei provinces ", Wuhan seismic brigade of the National Seismic Department pointed out that Anyang, county Ji(now named county Weihui) belong to the six-grade(the design intensity of earthquake is 8 degrees) earthquake prone regions.

1.1.5. Necessities of the Project Since reforming and opening up to the outside world, the economy of Wehui County has developed quickly, the scale of the County has enlarged continuously and the population of the urban area has also increased continuously. At the same time with economic development and expansion, the supplemental infrastructures with economic growth have not developed harmoniously. Concerning water supply project, the present industrial water consumption in the urban area has exceeded fifty thousand tons a day, while the daily water supply capability of the completed first and second waterworks in Weihui County are only 3000 tons a day, furthermore, because of the water resource site has been polluted, the existing No .one and two waterworks have been scraped. The present actual water supply of

10 the third waterworks in Weihui County is 12,000 tons a day, and still being far more away from the demand of water supply. The county water supply can not satisfy the demand on quality and quantity of county life and production. Most of the industrial and domestic water needs are meet by self-operated wells, and because the existing self-operated well water-drawing system has no scientific management it is evident that underground water resources are being seriously wasted, the underground water be mined excessively and disorderly, and makes underground water level in the county area and its surrounding areas drop 5 to 12 meters. Moreover, the total ionic concentration of the underground water in the county proper is high, hardness is big, and the indexes of iron and manganese are seriously excessive, the water is bitter and salty with muddy color. The eastern Mengjing River, River Wei and the Communism Canal which flow through the urban area, as well as the urban natural water bodies being seriously polluted, and the drainage facilities have not perfected, making industrial and domestic waste water filter into the underground, causing the underground water quality to worsen. The inadequate water supply facilities of the County has directly affected the development of the county economy, the inherent low quality of the underground water have directly threatened the health of the county residents who have drunk it for a long time. Because of this, Weihui County plans to invest for the setting up of a water supply project, to offer adequate and sanitary running water for the county development and for the life of the residents.

1.2. The Overview of the Project 1.2.1. Geographical Position of the Project The new water project factory site is located at 16.5kms northwest of Weihui County, under the jurisdiction of Nanling village, Shibaotou township. It is about 500 meters away from the water resource site-the Tagang reservoir, which was set up in 1958. The site is on the southwest edge end of mountain Taihang and is 90 meters long from the west to the east and 150 meters long from the south to the north, totaling 13,500 square meters (adding up to 20.24 mu), in which water treatment structures occupy an area of 1437 square meters, with a construction area of 1631 square meters. The plant is adjacent to roads in the north, Donggou village to the east , Tagang village to the west, and piedmont slope and the bottomland of Canghe to the south.. The total length of the water transfer system is 16.5 kilometers (the main pipe from the waterworks to the urban area), along the line, from the north to the south it involves Shibaotou, Andu and Chengjiao towns, and 13 villages, in which Shibaotou town has Tagang village and Nanling village, Andu town has villages such as Koutou, Jiangshan, Mahudong, Beiguan, Nanguan, Xiaohongfang, Shiping, Houyang, Qianyang, Jinggang, and Chengjiao town has its Xuetun village.

Tagang reservoir was constructed between June and September of 1958.

1.2.2. Major Construction Components of the Project The design capacity of water supply project of Weihui County is 30,000 m3/d, the project scheme adopts the following way: the water in the reservoir enters the water factory through pump stations and, after treatment, using the natural elevation difference flows by gravity to directly supply water to the urban area. The Project includes water abstraction (the main facility are submersible water abstraction pumps); raw water conveyance (two d500 pipelines of reinforced concrete each 500 meters long); water treatment plant (the major facilities and structures are apartments for filling chlorine and medicine, the pipeline static mixer, wing flat partition reaction pool and contact wadding of static quiet congeal oblique board sedimentation basin and rainbow inhale filter and clear pond etc., as well as other affiliated supplemental facility) and a water distribution network (this includes 16.5 kilometers of d800 reinforced concrete water conveyance pipeline, 14 kilometers of d400 to d600 nodular cast iron pipe, 20 kilometers of d200-d300UPVC pipeline). In addition power supply and communications facilities to serve the new water treatment plant are required.

11

1.2.3. Project Implementation Schedule · The preliminary phase of the Project: was from Sep 2004 to Dec 2004, to the complete the authorizing and examining job of the project feasibility research report, verifying the adequacy of the available water resource, and evaluation of environmental impacts. All required domestic approvals in the preparatory phase were obtained by the end of December 2004. ·The pre-construction phase(1): from Jan 2005 to Apr 2005, to complete the preliminary design , detailed design for construction, and corresponding procedure for examination and approval. · The pre-construction phase (2): from August 2005 to September 2005, to complete the requisition of land and demolition job, the site grading job ,etc., which is named” three steps to notify and one step to calm”. · From Sep 2005, the project is under construction.

1.2.4. The Socioeconomic Benefits of the Project · This Project being a county infrastructure project will help facilitate the economic development of Weihui County, and will establish a good foundation to quicken the pace of urbanization, to perfect the comprehensive county function, to accelerate socioeconomic development speed, and to raise the masses’ living standards. It should therefore be implemented as soon as possible. ·The completion and being put into production of this Project will greatly optimize the investing and financing atmosphere. Water supply is the foundation for industry and other industrial development, and the implementation of this Project will provide a basis for Weihui County to better attract inward investments(including from overseas) · The function of water supply itself is run as an enterprise, after being put into use, it will also directly produce economic benefits. Water is also a kind of merchandise; this Project can safely supply water for life and water for industry, and will also bring direct economic benefits the Weihui Water Supply Company as the project owner.

1.3. The Scope of Project Impact

1.3.1. Land Occupation for Water Intake Pump Stations (WIPS)

Pump stands themselves adopt directly putting the submersible pumps into the reservoir, directly put into reservoir, its controlling equipment is installed in power station that is close to the large dams and do not have containing problems. There is no requirement for permanent land acquisition at the site of the reservoir.

1.3.2. Permanent Land Acquisition The site of the water factory itself belongs to Nanling village of Lietou town, occupying an area of 20.24 mu, in which 10.91 mu are paddy filed, 9.33 mu are wheat spanking ground, which is currently of collective ownership, and which will need to be permanently acquired. Weihui WSC will take over this land for use as a water treatment facility according to relevant policies. Much of the interior of the land is piedmont flat and the bottomland of Canghe River. There will be 5 families or 19 people that will be affected by the project.

1.3.3. Temporary Land Use The water pipe line of the water factory and the installation and placement of water conveyance pipelines from the water factory to the urban area temporarily occupy an area of 484.36 mu. For this, the project unit will compensate according to relevant specifications. These works involve 3 towns, and 13 natural villages. The number of families and villages that are influenced is shown in Table 1.1.

12 Table 1-1 Villages & Numbers of Households affected by Temporary Land Acquisition. Township Village Number of Note household Shibaotou Tagang 35 Nanling 15 (Including permanently occupied land) Andu Koutou 70 Jiangshan Mahutong 171 Beiguan 97 Nanguan 80 Xiaohongfang Shiping 73 Houyang 54 Qianyang 121 Jinggang 79 Chengjiao Xuetun 118 Overall Total 913

1.3.4. The Affected Persons (APs) of the project The population deemed affected by the Project is only the population being taken the land over perpetually and temporarily, and does not include the population in the urban area that will suffer some disruption as new distribution mains are laid in the urban roads. Actual investigation statistics show that the permanently acquired land will affect 5 households (19 persons) without vulnerable groups; and the temporary occupation of land will affect 908 households total 3720 persons. There is no minority population involved and all are agricultural population, of which 10 are poor households, two households of elders who have lost their labor ability, and there are also some elderly and infirm persons.

1.3.5. The Scattered Trees and Graves The investigation on the trees and graves in the 20.24 Mu of perpetual takeover land and the temporary takeover land shows that we have to demolish 134 trees and 5 graves as indicated in Table 1.2. . Table 1-2 Project Impact on Scattered Trees & Graves

Village Number of trees Number of tombs Nanling 74 5 Tagang 20 Koutou 10 Qianyang 10 Houyang 20 Total 134 5

1.3.6. Infrastructures and Special Facilities 120m3(300m in length) of channel and 200m2 (200m in length) of the village road will need to be occupied, and reinstated/compensated for.

13 1.4. Preparation of Resettlement Plan 1.4.1. Foundation and Objectives for RP Preparation The foundation: “The land administration law of the People's Republic of China” “The implementing methods of land management law “of Henan Province “Temporary Regulations of Farmland Land Occupation Tax for the PRC, 1987 “The management methods of forest land “of Henan Province " ADB’s Policy on Involuntary Resettlement” Objectives: A. Try to avoid or decrease as much as possible the number of material objects of the APs whose land has been taken over with project, technical, and economic measures. B. The resettlement of the APs is on the basis of the index of material objects that are lost and by applying adequate compensation standards, to maintain or raise the former producing and living standards of the APs.

1.4.2. Methodology of RP Preparation (1) The related project reports, especially the project suggestion and feasibility reports. (2) The detailed data investigation of the effect of the Project in its scope completed in October 2004. (3) Meetings of Weihui government agencies held to discuss and compose the resettlement plan. (4) The socioeconomic investigation on the families affected completed in October 2004. (5) Consultations with representatives of the government departments of villages and towns, the cadres of the villages, and villagers that will be affected. (6) Individual AP consultation, to discuss and decide the compensation and understand the income recovery strategy and plans that they hope to implement to improve their livelihoods.

2. Socioeconomic Background of the Affected Areas

2.1. Socioeconomic Situation of the City The land area of Weihui County is 882 square kilometers, the area under cultivation is 580,000 mu, the gross population is 481,200, the town population is 128,600. The County’s planned development area is 68.50 square kilometers, and the established county area is 18.21 square kilometers. The Gross National Product is CNY 2.464 billion, in which the primary industry produces CNY 863 million, the second industry produces CNY 611 million, and the tertiary sector produces CNY 989 million. The gross output of foodstuff is 28,210,000 tons, cotton being 2783 tons, oil being 13,291 tons. The total amount of retail sales of the social merchandise is CNY 1.06 billion. The annual disposable income of town residents is CNY 3228 Yuan and the annual per capita income of the rural residents is CNY 2378.

2.2. Socioeconomic Information of the Affected Towns and Villages Shibaotou Township: It is located in the northwest of Weihui County, in the district of Mountain Taihang, adjoining Qi County and Linzhou in the northeast, neighboring Andu Township and Taigongquan town in the south, and adjacent to Dachishan and Dongshuanma villages in the west. The highways go through the north to the south, so it is very convenient. The gross area is 94 square kilometers, governing 19 administrative villages, 83 villages, 2,290 households, comprising 8,612 persons, among which the rural population is 8,350, and all belong to the Han nationality. The area under cultivation is 393 hectares representing 0.05 hectares per capita.

The topography features high in the north and low in the south, with Canghe flowing through the whole township. Transecting Canghe are three medium-sized reservoirs - Tagang, Shibaotou and Zhengmian, with a total gross storage capacity of 50,870,000 cubic metres. Auxilliary irrigation facilities include two arterial trenches - Hongwei and Tagang, 12 tributary

14 trenches, spanning 42 kilometers, 5 water-lifting stations, and 4 deep phreatic water wells. The effective irrigated area is 264 hectares, accounting for 39.7% of the area under cultivation.

The gross social production value of the town is CNY 33.21 million. The total value of output of agriculture and industry is CNY 19.91 million, in which industry accounts for CNY 4.15 million, and agriculture accounting for CNY 15.76 million. Andu Town: Andu is located in the northwest of Weihui County, belonging to hilly land, adjacent to Dunfangdian in the east, adjoining Taigongquan town in the west, neighboring Chengjiao village in the south, and near to mountain Taihang and Qi county in the north. Weishuan highway crosses the village from the south to the north, and Pangtai railway crosses the village from the east to the west. The 107 national highway crosses from the east of the township, the township roads interlock freely and extend in all directions, and it is convenient.

The total area of the township is 79 square kilometers, encompassing 32 administrative villages, 44 villages, 164 groups of the villagers, 7787 households, and 31,869 people. Among which, the farm population is 31,685, 15,903 male and 15,782 female. Total area of land under cultivation is 4294 hectares and this equates to 0.13 per capita. There are two arterial trenches – Tagang and Shibaotou, and 6 tributary trenches, with the total length 27 kilometers and these can convey water at 6 cubic meters per second. There is a water-lifting station with a installation of 30 kw. There are two mini-type reservoirs and 161 electromechanical wells. There are 3271 hectares of effectively irrigated area and the area of “three-high land” amount to 1333.3 hectares. The gross social production value of the township is CNY 115.05 million, the total value of output of industry is CNY 75.77 million, the government financial revenue is CNY 1.4065 million

Chengjiao Township: Chengjiao borders Weihui County, and is adjacent to the towns and villages such as Jishui, Niwan, Houhe, Liuzhuang, Sunxing, Tangzhuang, Taigongquan, Andu, Dunfangdian and so on. The total area is 25 square kilometers, encompassing 17 administrative villages, 20 villages, 6,021 households, 20,397 people with 19,854 agricultural population. There are Han and Hui nationalities. The total area of land under cultivation is 1,116 hectares. The township owns 350 mechanical wells, 17 trenches of irrigation, 10 trenches for discharging water, and has a superior water conservancy condition. The gross social production value is CNY 270 million, among which industry accounts for CNY120,000,000, with agriculture accounting for CNY 68.02 million.

The socioeconomic conditions of individual villages affected can be seen in the detailed survey sheets included as Appendix 1 to this RP.

2.3. Basic Economic Condition of Affected Households The economic conditions of the families affected by permanent requisition land are summarised in Table 2.1 and socioeconomic situations of persons affected by temporary land use can be seen in Table 2.2 below:

15 Table 0-1 Economic Conditions of Households Affected by Permanent Land Acquisition Householder’s Family Income per Area Fell trees Note name member capita coverage Yangchengkui 4 800 5 2 WangChaungchun 4 780 2.8 WangPeihong 4 790 1.6 YangRuyi 5 750 1 40 Li Xinghua 2 750 0.51 3 The collective of 9.33 25 Wheat the village threshing ground

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Table 0-2 Socioeconomic Situations of Persons Affected by Temporary Land Acquisition Basic Information of the Village/Group Farmland Annual Net Land Index Agriculture Labor Total Total Area Income Acquisition Village Population Force Households Population （mu） （Yuan/person） （mu） （Person） Nanlin Village 87 346 346 168 315 750 10.91 Shibaotou Town Tagan village 174 694 694 330 555 850 Shibaotou Town Koutou village 238 1031 1031 691 1410 980 Andu Town Mahutong village 287 1159 1159 798 1665 1000 Andu Town Beiguancun village 425 1699 1699 1220 3390 980 Andu town Nanguan village 343 1530 1530 1054 3090 970 Andu town Shiping village 213 889 889 559 2235 960 Andu town Houyang village 310 1208 1208 869 2205 1000 Andu town Qainyang village 128 514 514 375 1170 960 Andu town Jinggan village 301 1216 1216 810 2490 970 Andu town Xuetun village 442 1761 1450 955 2295 2340 Chengjiao town

17 3. Project Impacts

3.1. Land Acquisition and Resettlement (LAR) Impacts.

The major impact of this project is on the 20.24 Mu permanently acquired from Nanling village, Shibaotou Township, 5 households 19 people; the other impact is on the temporarily used land covering an area of 484.36 mu, 908 households and 3,720 persons.

Basic facts of the land permanently occupied by the project are summarized in Table 3.1 below;

Table 3-1 Summary of permanent land acquisition Name of Name of Land In wheat Number of Number of township village Acquisition which: threshing household person (mu) Paddy ground Shibaotou Nanling 20.24 10.91 9.33 5 19

Basic facts of the land temporarily occupied by the project are summarized in Table 3.2 below;

Table 3-2 Summary of Temporary Land Acquisition Name of Name of Number of Number Dry Irrigable In township village household of person land(Mu) fields total(Mu) (Mu) Shibaotou Tagang 35 141 17.50 17.50 Nanling 10 39 10.90 10.90 Koutou 70 281 36.08 36.08 Andu Mahutong 171 700 78.19 78.19 Beiguan 97 390 57.10 57.10 Nanguan 80 322 42.40 42.10 Shiping 73 299 35.03 35.03 Houyang 54 217 27.02 27,02 Qianyang 121 487 63.15 63.15 Jinggang 79 330 42.1 42.1 Chengjiao Xuetun 118 514 75.19 75.19 In total 908 3,720 28.4 455.96 484.36

Additional project impacts that have been identified include:

• Scattered trees and graves There are 134 fruit trees and material arbors to be destroyed, 5 graves to be moved.

• Special facilities The project destroys 120 m3 (300m in length) of rubble concrete intended to be used for building trenches; 200 m2 (200m in length) of village road.

• Affected vulnerable households/groups There are 5 poor families affected by the requisition of land.

18 3.2. Measures to Avoid or Minimize Land Acquisition 3.2.1. Measures to Reduce Land Acquisition During Design Phase In the planning and design phase, the design unit and the owners of the project have adopted some effective measures to reduce the Project’s influence on the local social economy: 1. Permanent requisition of land by the water factory should be as little as possible. 2. The long-distance delivery pipes from the factory to the urban area should try to avoid villages and buildings. 3. The pipelines in the urban area of the County should as far as possible be laid at places that are previously reserved for them. In the introductory design phase of the project, there were two schemes for the locus and delivery pipes: Scheme one: The locus is close to the dam of Tagang reservoir, and the delivery pipes are to be placed along the eastern side of Weishuan highway. Its advantage is convenient and easy for construction. Its shortcoming is that area completely occupies land, the delivery pipes have to cross through the village, so there are too many buildings and other facilities to be destroyed. Scheme two: To move the factory site 500 meters to the south of Tagang reservoir, where there are place to thresh wheat or barley, hillside fields and some farmland; to move the delivery pipes to the northeast of Weishuan highway and the pipes can cross through the farmland not through the village. Its advantage is that it has less permanent requisition of land and occupies less land under cultivation, with no buildings and less infrastructure to be removed. Its shortcoming is that it has much more temporary requisition of land and there is a slight increase in the length of the pipes. In order to maximise the reduction of the permanent land acquisition impact it has been decided to adopt option two after comprehensive comparison.

3.2.2. Measures to Avoid Contingent Land Acquisition and Resettlement during Construction Phase (1) To strengthen the organization and design of the construction (2) To timely solve the problems caused by the reason of place in the construction process. (3) To communicate effectively with the headquarters, to make good stack of raw materials.

3.3. Method for Detailed Measurement Survey To evaluate the loss of land acquisition and resettlement, to provide reliable basis for the resettlement plan of APs and for the drawing up of budgetary estimate, this project makes its subjects to be: the investigation of land requisition, of the population affected by the project, of the scattered trees, of special facilities, etc. Its concrete methods of investigation are as follows: (1) Census. The census of the households affected by the land requisition can be done separately according to the following types: The land of the households has to be permanently acquired, and the land of households that has to be temporarily acquired. (2) Land investigation. Identify the present user(s) of the land, to measure the land piece by piece on the spot, and to investigate and add up the area according to the different uses and occupants/owners. (3) The investigation of scattered trees and cemeteries. To verify item by item and one by one for the scattered trees and cemeteries in the scope of land requisition, and to register them according to their different species.

3.4. Analysis of Impact

The location of the water factory is in Nanling village, Shibaotou town. Due to the construction of this project, Nanling has lost some land, and according to the tradition, we will usually make new adjustment of the land in the whole village, and all the villagers here can share the compensation funds of land requisition, therefore, it has relatively less influence on the 5

19 affected households. After adjustment, the gross loss of land accounts for 6.4% of the average of the whole village.

To make the income of the villages more than before the implementation of the Project, and after discussion with the village committee of Nanling, the village has decided to take the advantage of the adjacent deserted hills and sloping land, to use most of the compensation funds to reclaim orchards to develop forest production. Mainly to grow persimmons, hawthorns, walnuts and other new types of fruits capable of surviving draught. After reclaiming, let the villagers grow them by contract to make them have an income increase. As a measure of production and income restoration, contracts to use the orchards will be offered as a priority to the households that will lose their land to the Project. At the same time, during the period of the construction of the Project, the rubbles, mountain meal and stones needed will be provided by Nanling village, the laborers needed will first be given to the Nanling villagers, and transport of building materials will also give precedence to Nanling village, to maximise the prospects for the Nanling villagers to have higher incomes than before the Project.

As for temporary land acquisition, the compensation for young crops and for second tillage of the land will be compensated to the villagers once for all, and will surely exceed the income of farming.

When construct the urban pipes, efforts will be made to try to avoid the business hours of the stores and the traffic peak. To do the construction at night in the outskirt to accelerate the progress of the project.

4. Legal and Policy Framework

The legal framework and resettlement policies for the Project have two sources: Chinese laws and regulations, and ADB’s involuntary resettlement policy. This section will mainly brief the differences between the two policies, with a purpose to make a comprehensive LAR policy for the Project, as well as land acquisition & compensation strategies.

4.1. Referential National/Local LAR Laws & Regulations The Land Administrative Law of PRC, put in force in 1999, clarifies the ownership and the right to the use of the land, the protection of the use of the land and the compensation, the appropriate resettlement and subsidies to the APs. It states that land in the urban areas of cities shall be owned by the State and land in rural and suburban areas, including the house sites and cultivated land, shall be owned by farmer collectives (ARTICLE 8). A collective and its members, (at least two thirds of the villagers assembly), can decide whether or how to redistribute the land (ARTICLE 31). Land to be acquired shall be compensated for on the basis of its original purpose of use and compensation for acquired cultivated land shall include compensation for land, resettlement subsidies, attachments and young crops on the acquired land. Compensation for acquisition of cultivated land shall be some multiple of the average annual output value (AAOV) of the acquired land for three years preceding such acquisition. The resettlement subsidy for each individual needing resettlement shall also be some multiple of the AAOV for three years preceding such acquisition. The compensation standard for attachments and crops shall be provided by people's governments of provinces, autonomous regions and municipalities directly under the Central Government (ARTICLE 47). Once a plan for compensation and resettlement subsidies for acquired land is decided on, the local people's government concerned shall make it known to the general public (ARTICLE 48) and the rural collective economic organization, the land of which is acquired, shall accept supervision by making known to its members the income and expenses of the compensation received for land acquisition (ARTICLE 49).

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The detailed implementing plans to clarify the eligible persons qualified to accept compensation and prescribe and supervise the schedule of the resettlement. In the process of demolishing urban buildings, certain laws and regulations and policies are involved issued by the Central Government and the local governments. The Chinese laws and regulations applicable to the land acquisition, resettlement and compensation of the Project are summarized as follow: z Land Administration Law of the PRC, put into force on January, 1999; z Methods of Land Acquisition Announcement by Land Resources Administration, put into force on January 1, 2002; z Henan Provincial Management Guidelines for Implementation of the Land Administration Law of PRC, 1999; z Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration, issued October 2004; z Urban House Demolition Management Regulation of PRC, put into force on January 1, 2001; and z Urban House Demolition Management Regulations of Henan Province, put into force on December 1, 2002.

4.2. ADB’s Policy on Involuntary Resettlement The Asian Development Bank sets out its official requirements in the Involuntary Resettlement Policy adopted in 1995. The principles of the ADB’s Policy on Involuntary Resettlement are as follows:

(i) Involuntary resettlement should be avoided where feasible. (ii) When population displacement is unavoidable, it should be minimized by exploring all viable project options. (iii) If individuals or a community must lose their land, means of livelihood, social support systems, or way of life in order that a project might proceed, they should be compensated and assisted so that their economic and social future will generally be at least as favourable with the project as without it. Appropriate land, housing, infrastructure, and other compensation, comparable to the without project situation, should be provided to the adversely affected population, including indigenous groups, ethnic minorities, and pastoralists who may have usufruct or customary rights to the land or other resources taken for the project. (iv) Any involuntary resettlement should, as far as possible, be conceived and executed as a part of a development project or program and resettlement plans should be prepared with appropriate timebound actions and budgets. Resettlers should be provided sufficient resources and opportunities to re-establish their homes and livelihoods as soon as possible. (v) The affected people should be fully informed and closely consulted on resettlement and compensation options. Where adversely affected people are particularly vulnerable, resettlement and compensation decisions should be preceded by a social preparation phase to build up the capacity of the vulnerable people to deal with the issues. (vi) Appropriate patterns of social organization should be promoted, and existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible. Resettlers should be integrated economically and socially into host communities so that adverse impacts on host communities are minimized. One of the effective ways of achieving this integration may be by extending development benefits to host communities. (vii) The absence of formal legal title to land by some affected groups should not be a bar to compensation. Affected persons entitled to compensation and rehabilitation should be identified and recorded as early as possible, preferably at the project identification stage,

21 in order to prevent an influx of illegal encroachers, squatters, and other non-residents who wish to take advantage of such benefits. Particular attention should be paid to the needs of the poorest households and other vulnerable groups, such as indigenous peoples, and appropriate assistance provided to help them improve their status. (viii) The full costs of resettlement and compensation, including the costs of social preparation and livelihood program as well as the incremental benefits over the “without project” situation, should be included in the presentation of project costs and benefits.

According to the Bank policy, the contents and level of detail of a resettlement plan, which may vary with circumstances, especially the magnitude of resettlement, should normally include a statement of objectives, policies and strategy, and should cover the following essential elements: (i) organizational responsibilities; (ii) community participation and integration with host population; (iii) socioeconomic survey; (iv) legal framework, including mechanisms for resolution of conflicts and appeals procedures; (v) identification of alternative sites and selection; (vi) valuation of and compensation for lost assets; (vii) land ownership, tenure, acquisition and transfer; (viii) access to training, employment and credit; (ix) shelter, infrastructure and social services; (x) environmental protection and management; and (xi) implementation schedule, monitoring and evaluation. The Bank policy also requires that cost estimates should be prepared for these activities; they should be budgeted; and implementation of the activities should be scheduled with time-bound actions in coordination with the civil works for the main investment project.

4.4 Compensation Rates

4.2.1. Eligibility and Rates of Compensation i. In China, the procedures of resettlement are entrusted to the Project implementing agency, in this case the Weihui Water Supply Company.. According to the laws, regulations and policies, the implementing agency shall provide compensation and aids to those who have lost land, house buildings in the Project and make sure compensation and entitlements provided must be adequate to allow APs to at least maintain their pre-project standard of living, with the prospect of improvement. ii. All the APs, legal and illegal, are to be taken into consideration and accounted for to receive compensation to their loss of affected assets in accordance with the resettled value of the assets, without any depreciation. The APs have free access to the building materials from demolishing activity where this is required.. All the affected enterprises are eligible to receive compensations and subsidies. Those needing relocating shall be relocated as near as possible to the original site. All the affected workers, the permanent employees as well as the contract laborers, can seek re-employment in the relocated enterprises. The affected workers are entitled to receive subsidies from the temporary impact period. iii. The eligibility-registering deadline for compensation will be the date of the DMS. The detailed measurement surveys have been untaken from August 15, 2004 to September 15, 2004. The newly-cultivated land and the newly-built houses of the APs, and settlement in the affected areas are not taken into consideration or accounted for after this cut-off date. Any buildings, trees and crops merely for extra subsidies are not guaranteed.

4.2.2. Compensation Rates of the Project

In this project, the standards are issued by People’s Government of Weihui County. The terms of compensation for loss of agricultural production are first in accordance with the annual value of the cropland as set out in Table 4.1.

22 Table 4-1 Average Annual Output Value (AAOV) of the Cultivated Land

Grades of cultivated Land Division Criteria Average Output Value (RMB/per mu) Grade 1 Excellent soil quality with 1,300 complete drainage and irrigation facilities. Land is smooth and fertile. Grade 2 Good soil quality with 1,150 comparably complete drainage and irrigation facilities, land are comparably smooth and relatively fertile. . Grade 3 Soil quality is average , not 940 irrigated and drained, plots are comparably smooth, land is averagely fertile Grade 4 Soil quality is poor, without 800 drainage and irrigation facilities, plots are not smooth and not fertilized adequately

Notes i. Any land to be acquired from the APs will be compensated according to the harvest of the young crops. It is decided by the date of approval: if in summer, from October 1 to June 9 of next year, the value of the land will be 40% of that of the year; if in autumn, from June 10 to September 30, the value of the land will be 60% of that of the year. ii. The terms of compensation of the young economical crops are the same as the terms of compensation of the young crops for temporary land occupation. iii. The time from the beginning of land acquisition to the issue of the approval may cover two seasons. If no actual occupation of the land, only calculating the auxiliaries and discussing the terms of acquisition is involved, a single season of loss is taken into consideration for compensation. Whereas, any damage to the young crops in the procedures of land acquisition shall be compensated. Land Administration Offices shall consider the time of land acquisition and construction. If a project covers two or more seasons, Land Administration Offices shall notify the farmers to avoid any unnecessary losses.

Table 4-2 Compensation Rates for Permanent Land Acquisition Item Paddy Field Wheat Spanking Land Compensation for Ground compensation Yong Crops and Resettlement Subsidy Compensation Rate CNY 24,000/mu CNY 600/mu CNY20,000/mu

Table 4-3 Compensation Rates for Temporary Land Use Item Paddy Field Compensation Rate CNY 700/mu

23 Table 4-4 Compensation Standards for damaged assets on land acquired Item Grown up tree (each) Graves (each) In total CNY 100 CNY150

Table 4-5 Compensation Standards for damaged assets on land acquired Item Grown up tree (each) Graves (each) In total CNY 200-100 CNY150

Note: The compensation standards for trees are dependent on the species of the tree which will be ascertained during the detailed measurement survey.

Table 4-6 Compensation Standards for Affected Urban Road Road Types Asphalt Roads Concrete Roads Pavements Others Unit: CNY/m2 120 240 60 20

4.2.3. Compensation Eligibility and Entitlements

In China, the procedures of resettlement are entrusted to the project. According to the laws, regulations and policies, the implementing agency shall provide compensation and aids to those who have lost land, house buildings in the project and make sure compensation and entitlements provided must be adequate to allow APs to at least maintain their pre-project standard of living, with the prospect of improvement. In accordance with the compensation policies of eligibility and entitlements, a matrix for resettlement and relocation in the project affected areas is presented in Table 4.4.

24 Table 4-7 Entitlement Matrix Type of loss Use or loss reasons Entitled person Compensation policy Compensation detailed Implementing rules measures Land is Land is used due to Collective economic ---Compensation fund for cultivated land Compensate in full the villagers’ committee permanently water engineering organization that owns requisition amount the village and 5 will decide the way to acquired project the land and the farmers ---The substituted land , cash and other families. The distribute cash and land who use the land. means of subsistence compensated should compensated part and increase income be adequate for farm household to achieve commonly owned by It is proposed that some the original income level and living standard both village and families cash be used to develop or have a higher than the original income level should be defined by orchards. Households and living standard after relocation villagers’ committee, losing land will be given ---Compensation in cash for existing first priority when trees( based on type, age, and diameter of Paddy Field: CNY contracts to use the trees )and loss of crop (based on its annual 24,000/mu orchards are offered. average output during the time period of 3 Wheat Spanking years before the requisition) Ground:CNY20,000/mu Land is Temporarily used by Farmers who use the Pay compensation based on its annual Full compensation. Owner of the farm land temporarily the pipeline land average output during the time period of 3 CNY 700/mu will be notified first then used years before the requisition); after requisition, make the payment put the land back to its original state and return to the users Loss of crop All relevant people Crop loss will be compensated for based on Full compensation, the average annual output value of the CNY 600/mu requisitioned land for three years preceding such requisition. Other attachments to the land will be compensated for according to project standard Affected For lands affected Owners Compensation will be based on replacement Cash compensation facilities permanently or cost temporarily.

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5. Income Restoration and Rehabilitation Measures

5.1. Resettlement Strategy i. In the early stage of the procedures of resettlement, the IA, together with the local officials, will determine feasible relocation places. If possible, the resettlement site will occur within the community. If not, it will occur within the village. ii. They should make necessary consultation with the APs and determine their preferences for relocation. iii. The needs and expectation of the relocated households will be solicited, and every effort will be made to meet their requirements as much as possible. In this Project no physical relocation of households is currently envisaged.

5.1.1. Resettlement Objectives i. Any measures in engineering, technology and economy should be taken to avoid or reduce the actual number of the APs. ii. The resettlement is based on the standards of compensation and aims to improve or at least maintain the APs’ living conditions.

5.1.2. Principles of Resettlement Plan (RP) In line with laws and regulations and policies issued by the Government of China (GOC) and requirements of ADB’s Policy on Involuntary Resettlement, the resettlement of this project shall be conducted according to the following principles:

i. During the procedures of resettlement, the policies of compensation shall be carried out to ensure that the affected people will regain or surpass their standards of living after the resettlement. ii. During the procedures of resettlement, the interests of nation, collective and individual shall all be taken into careful consideration. iii. The resettlement plan shall be established in line with the substance index and the standards for compensation of land acquisition. The size and the standard of the resettlement construction shall remain what it used to be, not exceeding the budget nor leaving any financing defections. iv. The resettlement plan shall be prepared in consultation with the APs. v. The plan shall be drawn up in accordance with the principle of facilitating the APs’ life and work. vi. The resettlement shall be integrated into the whole structure of the local development programme, the development of resources, the development of economy and protection of the local environment. Practical and feasible measures should be taken to maintain and improve the APs’ living conditions, as well as to supply necessary chances for the APs’ further development.

5.2. Economic Rehabilitation Plan 5.2.1. Task of Economic Rehabilitation The task of Economic Rehabilitation is carried out by the local committee of the affected village. It can be divided into following sub-tasks: i. Any farmer collective, which is considered to be the site of resettlement, shall hold the villagers assembly or that of the representatives of villagers, including the APs or their representatives, to discuss the ways to readjust and redistribute the land and the overall plan of production. ii. Make public the overall plan to solicit the opinions from the villagers and the APs. iii. Readjust and redistribute land. iv. Pay special and close attention to the protection of women’s rights and the rehabilitation of vulnerable households.

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5.2.2. Analysis of the Environmental Capacity In Nanling Village there are 315 mu of cultivated land and 364 villagers in 87 families, with an average of 3.62 mu per family and that of 0.91 mu per villager. In all, this project will acquire 20.24 mu, i.e., 6.4% of the cultivated land, and 5 farmer households are affected. After consultation with the village committee and some of the representatives, an agreement of resettlement is achieved. The village committee owns the land and the committee are capable to readjust and redistribute the land, which only has a slight effect on the economy of villagers. The notice shall be made public in November 2004 and the readjustment and redistribution shall be completed before the end of June 2005 (after harvesting wheat) so that there would be no damage to the summer crops.

5.2.3. Rehabilitation Plan for Agriculture i. Land readjustment and redistribution. Before the construction of the Project, the village committee will readjust and redistribute the cultivated land among the villagers to ensure that every household occupies almost the relatively same amount of land. If some villagers volunteer to pledge their land, then maybe land can even be re-allocated to meet their former amount. ii. Currency subsidies. After receiving the land acquisition compensation from the constructing unit of the project, the village committee shall hold a villagers assembly to distribute part of the money among the farmer households, approximately 150 yuan per capita, which is about 3 years’ net income from the lost land. The about CNY600 per mu as compensation rate for standing crops and CNY1000 per mu for land recovery cost will be distributed from the money of pipeline compensation. iii. Take the advantage of being close to Cangyu Mountain Scenic Region to develop tourism. During the construction, the village can engage in the transport of the building materials to increase their income. iv. Readjust the agricultural structure. They can cultivate the land before the hill to plant fruit trees to increase the income. The remaining compensation and other changes can provide capital to fruit forestry. The trees will bear fruits in three years and the villagers’ income will not reduce but increase.

5.2.4. Income Rehabilitation Measures for Affected Households After land acquisition, several major measures to economic rehabilitation shall be considered. I. Economic rehabilitation measure based on the community level: in a short term, the affected community should suffer from the reduction of agriculture production because of loss of quality land. The compensation acquired can be invested on the following to raise the production rate of the newly cultivated land: a. improve irrigation and extend to non-irrigated fields; b. develop other agricultural infrastructures; c. cultivate varieties of crops; d. vegetables in greenhouses; e. animal husbandry. Each village or collective shall work out detailed plans of wisely using the current compensation. II. Individual handling of compensation. The policy of compensation funds encourages individuals to invest more on the fields beyond agriculture, such as small business, trade, transport. This region provides such investing environment. The need for more services will increase with the further implementing of the project. Thus, the APs shall find more ways to invest and more chances to profit. III. The training plans. Skills training will be provided to the villagers, including a. cultivating economic crops; b. maintenance of the agricultural mechanics; c. animal husbandry. All the APs are eligible to attend these plans, independently financed by the fund of compensation. IV. Re-employment opportunities created by the project. During the

28 implementation, the project will create large amount of temporary job opportunities with priority to the affected households members about 30 to 50 persons, including transport and processing of building materials. This not only functions as the extra income resource of rehabilitating life, but also provides training for new skills. The APs, especially the poverty population and those who have lost most part or all the land, shall enjoy the privilege to be employed. The IA and contractors shall cooperate with the local government to achieve this aim. V. Long-term employment opportunity. After completion of the water supply plant construction, the wastewater treatment plant plans to provide 5 positions to the 5 affected households, each household will have a member to work in the plant in future. VI. Vulnerable households will receive preference for replacement land, livelihood training, employment in project construction, and other community based social support.

6. Institutional and Organizational Structure

6.1. Organizations Involved in the RP z Project Resettlement Leading Group(PRLG) z Implementing Agency of the Project(IA) z Land Acquisition Office of the IA(LAO) z Resettlement Office of Shilbaotou Town, Andu Town and Chengjiao Town(RO) z Village Committee and Village Group z Project Design Institute(DI) z External Monitoring and Evaluation Agency(MEA)

6.2. Institution Responsibilities A. Project Resettlement Leading Group In order to fulfill the resettlement, the city/county resettlement implementation office will consist of representatives from city/county government, finance bureau, land administration bureau, affected towns and related departments. Its main responsibilities are to direct, coordinate and supervise LAR implementation work and its progress of the related departments or agencies and draw up the policies of resettlement of this project. Attached to the Leading Group is a project management office, sited in finance bureau, to deal with daily affairs.

B. Land Acquisition Office of the IA A Land Acquisition Office of the IA will be established to be in charge of overall land acquisition and relocation affairs. More specifically, the office will perform the following responsibilities:

z Drawing up the policies of land acquisition and resettlement; z contracting the relevant design Institute to determine the boundary of construction according to Project design, investigating and storing the data of affection of this project; z applying to City/County Planning Bureau for land-use permit, and applying to City/County Land Administration Bureau for construction land use permit ; z training of the cadres working in the office; z organizing drafting of Resettlement Plan and coordinating its implementation; z Managing, disbursing and supervising compensation funds; z Directing, coordinating and supervising the procedures of resettlement and its progress;

29 z Conducting internal monitoring on the progress of RP and drafting the report on the progress; z Choosing an independent agency and helping conduct external monitoring.

C. Resettlement Office of Shibaotou Town, Andu Town and Chengjiao Town This office consists of cadres from each town, related units and the affected villages. It will perform the following responsibilities:

z To participate in the investigation of the Project and assist in the preparation of Resettlement Plan; z To encourage the participation of the villagers and promote the policies of Resettlement and Relocation; z To implement, examine, supervise and record resettlement activities of all APs in the township; z To handle the procedure of the APs’ land acquisition and relocation; z To be responsible for disbursement and management of land compensation funds; z To supervise land acquisition, demolition of house, as well as relocation and house reconstruction; z To report the situation of land acquisition and resettlement to the county land administration bureau and resettlement management office; and, z To solve any conflicts and problems that may occur during the LAR process.

D. Village Committee and Village Group This group consists of the cadres from the village committee and villager groups. It will perform the following responsibilities: z To participate in the survey of the socio-economic impacts; z To organize public consultations and make them understand the LAR policies; z To allocate the residential sites to the relocated households; z To carry out land reclamation, adjustment and allocation, to organize resettlement activities like production rehabilitation and development; z To be responsible for disbursement and management of funds; z To report APs’ comments and suggestions to relevant departments; z To report land acquisition and resettlement implementation progress; and, z To provide assistance to households with financial hardship.

E. Project Design Institute The Design Institute of this Project is Henan Provincial Urban and Rural Programming and Planning Institute. It will perform the following responsibilities: z To design each item of the project according to the contract; z To determine the boundary of land acquisition and resettlement according to Project design;

F. External Monitoring and Evaluation Agency The External Monitoring and Evaluation Agency shall be determined by the bidding, which will be organised by Henan Provincial PMO, It will perform the following responsibilities: z To take responsibility for monitoring and evaluation of the work of resettlement and to provide full information of resettlement implementation and report the progress and problems and suggestions to ADB through the Office of Project Resettlement and Relocation. This responsibility will be fully described in Chapter 9 of this RP; z To provide consulting service to the Project in terms of date investigating and processing;

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6.3. Staffing for Resettlement Agencies

Staffing needs have been identified as shown in Table 6.1 below.

Table 6-1 Staffing needs for LAR activity Institutions for Full time staff Number of staff Constitution of Operation resettlement during peak staff action time period Project director 2 4 Government Started form officials January, 2004 Construction 2 4 Technical Started from Bureau of engineers and August, 2004 Weihui county managers Office for Land 4 8 Technical Started from Acquisition engineers, August, 2004 Work under the sociologist and project economists implementing carrying out unit survey work Government of 10 20 Work staff Started from Shaibaotou, August, 2004 Andu, Chengjiao, Jishui township Henan Urban 3 3 Senior Started from &Rural Planning engineers January, 2005 and Design Institute Independent 3 3 Professors, monitoring Engineers institutions In total 24 42

6.4. Institutional Reinforcement Measures i. To provide qualified personnel. Every single level of staff consists of qualified technological professionals and quality executive personnel. ii. To enhance necessary trainings. A. Train the staff members to comprehend China’s policies on Resettlement and the requirements of ADB. B. Train the personnel from the affected towns to understand the policies and enhance their ability to deal with practical problems. iii. To supply sufficient facilities and funds to improve working efficiency. iv. To exercise justified division of labor. Institute and perfect the stimulus mechanism to mobilize the staff members. v. To establish a data bank and check the feedbacks. The critical matters shall be settled upon the consultation among the Leading Group. vi. To strengthen the reporting system, by internal monitoring, so as to resolve incidents as soon as possible.

31 vii. To adopt the external monitoring and evaluation mechanism to establish a pre-warning system.

6. Public Participation and Consultation

6.5. Public Participation

In the process of setting up Resettlement Policy, formulating Resettlement Action Plan and conducting frank dialogue, with great emphasis on public participation and consultation; the opinions and suggestions from various social organizations/groups, government departments, affected village and households were gathered. All the relevant parties were encouraged to participate in the Resettlement and Reconstruction work. During the preparatory period when the feasibility study was carried out for the project, the Implementing Agency and the design institute had extensive consultation with relevant local government departments, People’s Congress, political consultative conference, social organizations/groups and representatives from the affected villages to solicit their opinions and suggestions on issues such as site selection, construction scheme, access road, method/way of resettlement, etc. During the preparatory work for resettlement, Resettlement Office of the IA solicited extensively the opinions on resettlement and compensation policy from local governments and representatives of the affected village/township and completed the formulation of Action Plan for Resettlement, with the assistance from local governments. During the implementation stage, all the relevant resettlement agencies will further promote and encourage public participation in Resettlement，Restoration and Reconstruction.

6.5.1. Public Participation during Project Preparation

During feasibility study of the project, Implementing Agency is actively engaged in the promotion of public participation. (1) During project design, relevant technicians from the construction company and the design institute carried out on-site investigation on several optional sites and consulted extensively with various local government departments to get their opinions and suggestions of the project. The design institute paid due respect to local government’s opinions and suggestions on the formulation and choice of all comparative schemes, and endeavoured to reduce acquisition of farm land as well as the demolition of houses. (2) In order to further publicize the project and collect opinions on project construction and resettlement plan from all the relevant people from all walks of life, since project planning, relevant personnel from the Implementing Agency had been to the affected townships/villages for over 10 times. They held meetings with relevant township/village cadres and representatives from affected household to solicit their opinions on the specific resettlement measures, and further publicized the necessity of the project and resettlement policy and etc.

6.5.2. Public Participation During the Preparation of the RP (1) From April to August, 2004, the Implementing Agency carried out a preliminary survey of condition of houses within the area to be acquired for the Project as well as relevant socio-economic survey. The representatives from affected households also took their part in the survey. Their suggestions to the project scheme, compensation for land acquisition and resettlement plan have been incorporated into project design and formulation of resettlement plan for due consideration.

(2) The Implementing Agency and Village/Township Resettlement Office held a series of meetings, in which local cadres of all levels and all the affected people participated, to extensively publicize the national, provincial and municipal resettlement policies in China as

32 well as respective policy requirement from ADB. Through these meetings, public opinions on how to reduce the project impact, how to resettle the people whose land would be acquired and how to set the compensation standard for the affected households of different categories were sought/gathered, and extensive consultations were carried out, too.

(3)From August to September, 2004, the Land Acquisition Office of Implementing Agency organized an investigation team of over 10 people to carry out the investigation-- the impact of land acquisition and resettlement on physical properties. Relevant representatives of affected household were involved in the investigation. At the same time, the Land Acquisition Office solicited from the representative villagers their opinion on optional sites, construction scale, construction scheme, land acquisition, resettlement and compensation standard. Extensive consultations were held by the Land Acquisition Office with affected households to pay due respect to their reasonable requests and opinions. In addition, the Land Acquisition Office also carried out socio-economic survey as well as survey of public opinion & psychology. In carrying out the socio-economic survey, door-to-door investigations were conducted on the households to be resettled to investigate their willingness to resettle and their attitudes toward the Project. Comprehensive investigations as mentioned above laid the foundation for the formulation of the resettlement plan. Furthermore, in the process of resettlement planning, the Land Acquisition Office went into the villages and other grass-root villager groups to hold meetings and discussions with village cadres and representatives of affected households for permanent land acquisition and relocation/or to conduct randomized interviews with affected households for permanent land acquisition and relocation to further solicit their opinions and suggestions on resettlement, including their preference for the resettlement location and their demand/suggestions on employment & compensation policy.

(4) In the process of conducting social- economic survey of project impact, local government, affected villages and affected households for permanent land acquisition and relocation gave great support and their cooperation. It was obvious that in the preparation of Action Plan for Resettlement Plan they were involved into this work.

(5) In order to further publicize the project and get a better understanding of the public opinion on project construction and resettlement, it is necessary to solicit the opinions of affected people, relevant villages and other grass-root villager groups on project construction and resettlement before the formulation of the Resettlement Plan. Before September, 2004, the investigation arm of the Land Acquisition Office conducted a survey of public opinion & opinion of the affected households for permanent land acquisition and relocation via questionnaire. Altogether, 100 affected households within the affected area were included in the investigation by questionnaire. The survey result from the affected households for permanent land acquisition and relocation is summarized in Table 7.1:

33 Table 0-1 Summary of Survey Result of Public and Affected Households for Permanent Land Acquisition and Relocation Ref Question Answer Result(%) 1 2 3 4 5 1 Do you know 1. Yes 2. not very 3. No 65 34 1 clearly this project ? 2 Do you support this 1. Yes 2. No 3. Don’t care 95 2 3 project? 3 Do you think this A. State 1. Yes 2. No 100 project is in whose favor? B.. the collective 90 10 1. Yes 2 No C. Individuals 1. Yes 2. No 88 12

4 What do you 1. Very severe 100 think of the 2. Not very severe extent of impact 3. Severely of potable water 4 not severe on life and health? 5 To what extent of 1. No impact 0 26 56 18 impact of urban 2. Not very severe living environment 3. Severely on your work and 4 very severe your life? 6 What benefit do 1.Improve living environment 78 67 60 90 you think this 2..Improve work environment project has brought 3.Increase employment to you? opportunities 4. Good for health 7 What negative 1.No negative impact 90 5 5 impact this project 2. Engineering mode has an has brought to impact on traffic conditions you? 3. Acquisition of land will reduce income 4..other negative impact 8 Do you understand 1.Yes 32 36 29 relevant 2.Some resettlement 3.No policy? 9 In the course of 1. Yes 89 11 resettlement, if 2. No your legitimate right is infringed, do you know that you can complain? 10 Your choice of 1. Resettle in nearby place 12 83 5 resettlement with similar conditions method and the same coverage area 2. Resettle with currency 3. Property right exchange

34

From the survey results, it is known that the majority of villagers to be affected by resettlement know that the Project will be carried out and are fully mentally prepared for land acquisition and resettlement with the expression of willingness to comply with the arrangements such as land acquisition, house demolition and resettlement. In addition, the majority of affected villagers request financial compensation in terms of resettlement options. Through extensive publicity, the majority of affected households for permanent land acquisition and relocation are aware that when their rights are infringed upon, they may appeal through legal procedures.

(6) Thereafter, the IA’s Land Acquisition and Resettlement Office for the Project as well as resettlement agencies at all levels would promote the publicizing of resettlement policies and encourage public participation through the following measures: 1) publicizing resettlement information(Resettlement Information Brochure,RIB) In order to make sure that the affected households for relocation and local governments would have a thorough understanding of the detailed resettlement plan and the compensation method of the project, Resettlement Office plans to publicize the relevant resettlement information, which are reviewed by ADB and packed up by RO, through putting up public bulletin or broadcasting in the affected area, and make it into resettlement information brochure, which will be distributed to every household for permanent land acquisition and relocation one month before the implementation of land acquisition and relocation. The main content of resettlement information will include: project survey, areas covered by the planned land acquisition, property damage caused by land acquisition, compensation standard, compensation amount and resettlement policy, the rights of affected households for permanent land acquisition and relocation, opinion feedback, grievance channels, monitoring & evaluation, and etc;

2) Meetings Six months before land acquisition and relocation, meetings, into which affected households for permanent land acquisition and relocation, village party committee, women representatives and the vulnerable would be included, would be held to give them relevant information and further solicit their opinions and suggestions. Three months before the implementation of land acquisition and relocation, further meetings would be held to give the affected people information on relevant policies, regulations and compensation standard in order that they may get prior notice early enough and make enough preparation thereof.

3) Publicizing construction planning, construction schedule and resettlement policy via TV, radio and newspaper. a. Participation into livelihood and production after relocation The reallocation and adjustment in farm land as well as the initiation of other agricultural development programs would include the participation of all villagers within the village. b. Participation into the management and use of land compensation fund Compensation fund from farm land belongs to the village collectively. No department or individual may withhold or misuse that compensation fund. After the fund is distributed to the village as a collective, it is up to the collective to be in charge of the fund in order to guarantee its appropriate usage. The use of that fund must get the approval by the meeting participated by all villagers and receive the monitoring of villager representatives. c. Public Participation into the Construction The project construction will have certain impact on the local communities, to a greater or lesser from village to village. In order to make sure that the affected people get benefit from project construction, their participation into construction is encouraged. Preference will be given to the locals in terms of labour and the supply of materials.

35 6.6. Grievance Procedure

6.6.1. Possible Grievances and Solutions During the survey, the demand and feedback from the Affected People (APs) on the Project have been investigated in order to assess their resettlement and relocation. They have been aware of the potential benefits from Project, and the issues they are concerned about include: 1) land and property losses 2) inadequate compensation 3) interruption to normal life resulting from resettlement and relocation.

The opinions from APs were discussed in the consultative meetings, into which officials from affected villages and the Weihui Water Supply Company had participated. In review of the issues on compensation for land acquisition, resettlement and measures for income restoration, etc., the following strategies are concluded: 1) try to reallocate farmland where it is possible 2) disburse compensation in such a way as to guarantee that the expenditure of compensation funds will directly benefit APs. 3) develop non-agricultural and small-size enterprises 4) give assistance to family-run small business, especially for women. All these strategies have been taken into consideration in the formulation of resettlement and relocation policies for the Project.

6.6.2. Grievance Channels and Procedures In the process of formulating and implementing Resettlement Plan for the project, the participation of affected households for resettlement and relocation is always encouraged. However, more or less problems will arise. In order to solve these problems in a timely and effective way and guarantee that project construction and land acquisition could be carried out smoothly, a transparent and effective grievance channel has been established for the affected person of the project in addition to existing appeal and grievance channels of local governments at all levels. The detailed procedures run as follows:

Stage 1: If the affected persons/enterprises are not satisfied with the planning or implementation of resettlement and relocation, they may make oral or written appeals to the township RO, village office or the IA of the Project. Relevant agencies should resolve the issue within 2 weeks.

Stage 2: If the affected persons/enterprises are not satisfied with results of stage 1, after receiving the results, they may appeal to the Resettlement Office at county level, who in turn should resolve the issue within 2 weeks.

Stage 3: If the affected persons/enterprises are still not satisfied with results of stage 2, after receiving the decision from the County Resettlement Office, they may appeal to the Leading/Decision-Making Team for Resettlement at the municipal level and ask for administrative arbitration. The arbitral authority should make its decisions within 10 days.

Stage 4: If the affected persons/enterprises are still not satisfied with the arbitral decision from the arbitral authority, after receiving the decision, they may file a civil suit based on law of civil procedure. The affected person may sue for any aspect of the resettlement and relocation, including compensation standard, etc.

36 The grievance channels mentioned above will be made known to the affected person through meeting and other methods in order that they are fully aware of their rights to appeal. At the same time, media coverage of the project will be promoted. Opinions and suggestions on resettlement and relocation from all walks of life will be gathered and classified for the real-time consideration and disposal by resettlement agencies at all levels.

Agencies handling appeals from affected person do not charge any fees. The cost resulted from appeals will be included into the unforeseeable expenses by the Project Office.

7. Monitoring and Evaluation (M&E)

In order that Resettlement Plan could be carried out smoothly and affected persons could be properly resettled, monitoring will be carried out through the whole process of land acquisition and resettlement for the project. Monitoring may be divided into two independent parts, namely “internal monitoring” by resettlement agencies and independent external monitoring.

7.1. Internal Monitoring 7.1.1. Objectives and Tasks The objectives of internal monitoring are to guarantee that resettlement agencies at all levels could carry out their responsibilities properly during the implementation of the Resettlement Plan, that the rights of the affected persons under the law will not be infringed upon, and that project construction could be carried out smoothly. The audit department from Weihui People’s government will independently audit and monitor the relevant agencies under its jurisdiction on the basis of relevant laws and regulations. At the same time, all responsible agencies should monitor the work of their affiliates in order that resettlement could be carried out in accordance with the principles and schedule of Resettlement Plan by resettlement agencies at all levels. 7.1.2. Agencies and Staff The internal monitoring on the implementation of land acquisition and resettlement is presided by Project Land Acquisition Office, while implemented by village/township Resettlement Offices and relevant groups. In order to carry out internal monitoring effectively, those particularly designated staffs of resettlement agencies at all levels have participated into the formulation and implementation of Resettlement Plan, and will carry out internal monitoring and control according to the Resettlement Plan during the implementation of the project. 7.1.3. Monitoring Indicators The main internal monitoring indicators include: (1) timely disbursement of compensation fund for resettlement and its proper use (2) assistance to the vulnerable and poor APs (3) employment arrangement for the APs (4) land reallocation and distribution (5) restoration and reconstruction of infrastructures (6) schedules for activities mentioned above (7) the implementation of policies and regulations on resettlement plan (8) participation and consultation of Affected Person during the implementation (9) staffing, training, work schedule and the operation of resettlement agencies at all levels. 7.1.4. Implementation Procedures In the process of implementation, resettlement agencies at all levels should set up respective databases for resettlement, update them based on implementation practice, and send in a timely manner the real-time record of activities being taken and monitoring results and recommendations to the superior resettlement agencies from bottom level to the top. Information sheets will be particularly designed and formatted for the monitoring operation mechanism mentioned above in order to achieve the circulation of information from

37 Resettlement Teams at the village level to the Project Land Acquisition Office. As key components of the internal monitoring system, the Project Land Acquisition Office, Township Resettlement Office and Village Resettlement Teams will conduct regular inspection and verification.

During resettlement implementation, a summary report of the internal monitoring will be sent to Henan PMO each quarter, and a copy forwarded to ADB.

7.2. Independent External Monitoring and Evaluation 7.2.1. Objectives and Tasks External monitoring and evaluation is to conduct regular evaluation of activities such as the practice of land acquisition and resettlement from the external perspective other than the resettlement agencies to evaluate whether the objective of resettlement is achieved or not. External monitoring and evaluation will provide assessment and suggestions on the whole process of resettlement and the restoration of living standard for affected persons, provide the construction management department a warning system, and bring about a channel for the expression of opinions from affected persons. The external monitoring agency will also act as the advisor to the Leading/Decision-Making Team for Resettlement and Land Acquisition Office for the project. They will track, monitor and evaluate the implementation practice of resettlement and relocation plan, and present consultant’s opinions for decision-making. 7.2.2. Main indicators for Monitoring and Evaluation 1) Progress: including preparatory work for and implementation of land acquisition and resettlement. 2) Quality: including the degree to which affected persons are satisfied with the process of resettlement and their restoration of living conditions, livelihoods and incomes. 3) Financial Control: to verify proper disbursement of compensation funds and their use. 7.2.3. Monitoring and Evaluation Methods Monitoring and evaluation will be carried out on the basis of survey statistics provided by the survey design institute and resettlement implementing agency. Based on a comprehensive investigation and understanding, the evaluation work depends on a mixture of sampling and participatory assessment, including selection of typical samples (affected villages/households) which are representative, establishment of respective evaluation systems of indicators for different categories of affected persons, and to calculate, analyse and evaluate the survey results. Independent monitoring and evaluation agency will also be engaged in the following activities:

1) survey of living standard of the affected person for resettlement

Comprehensive survey will be carried out for the project and information of selected samples (initially, samples are selected by random sampling) on living and production standard would be gathered. In order to measure the fluctuation of living and production standard of sample household, survey of living and production standard will be conducted each year for at least two years, or until conditions have been fully restored. Via regular survey, random interview and on-site observation, etc., necessary data and information will be obtained. On this basis, statistics will be analysed and evaluated. Survey form of living standard is made up of various indicators that are used to measure the standard of living and production. Whether the design of these indicators reflects faithfully the change of living standard of APs will be verified in this survey. Improvement to the design or implementation will be made on the basis of practice in order to make sure that the information obtained faithfully reflects the living and production standard of APs and relevant quality and quantity.

38 2) Public Consultation

Independent monitoring and evaluation agency will attend the public consultative conferences held by village/township. Through these meetings, the agency may evaluate the effect of AP participation and the willingness of AP to cooperate under the Resettlement Plan. After the implementation of resettlement, these activities will continue until all outstanding issues are resolved.

3) Opinions from AP The independent monitoring and evaluation agency will visit resettlement agencies at village and township level to collect opinions and suggestion expressed by the AP. The independent agency will also meet those APs and affected entities who have grievance in formal or informal ways, transfer their opinions and demand in a timely way, and bring forth suggestions to improve the work in order that the implementation process of resettlement would be more effective.

4) Other Responsibilities During the implementation process, the independent external monitoring and evaluation agency will monitor following activities: 1) production rearrangement and restoration 2) support for the vulnerable groups 3) restoration and reconstruction of infrastructure 4) payment of compensation and its amount 5) employment for the labour force 6) technical training 7) schedule of all activities mentioned above 8）the establishment of networks for resettlement agencies 9) use of land compensation for benefit to the collective and the AP 10) income increase from employment for the labour force

7.2.4. Work Procedures

1) formulation of the outline for monitoring and evaluation 2) Development for monitoring and evaluation information system of APs 3) formulation of survey outline, survey form, and record cards for typical villages and households 4) design of sampling scheme 5) baseline investigation of sample households and affected entities 6) establishment of monitoring and evaluation information system 7) monitoring surveys: --- area socio-economic survey --- monitoring implementing agencies for resettlement --- investigation on typical village --- investigation on typical household --- investigation on other typical targets 8) collection of monitoring materials and establishment of resulting database 9) comparative analysis 10) compilation of one monitoring and evaluation report every year.

7.2.5. Independent Monitoring and Evaluation Report on Resettlement Independent monitoring and evaluation agency will submit its work report within one month since it starts to work. When Project Land Acquisition Office reports to ADB on the progress of resettlement, the reports from the external monitoring and evaluation agency will be attached.

39 1) Time Interval According to the requirement from ADB, monitoring and evaluative investigation would be conducted for once every year, since the beginning of resettlement implementation. It would be carried out in August every year, and the monitoring and resettlement report on resettlement would be submitted before 31th December every year. Independent monitoring and evaluation of resettlement for the project would be carried out for four times (once from 2005 to 2008, according to plan) based on the implementation of resettlement. By the end of September 2005, the outline for monitoring and evaluation would have been provided, selection of land acquisition and resettlement samples as well as collection of sample background information would have been completed, and the resulting database would be established. 2) Content 1) background information of APs 2) the progress of land acquisition and resettlement 3) arrangement and restoration of livelihood 4) the living standard of APs 5) the substantiation and use of resettlement fund 6) evaluation on the operation and effectiveness of resettlement and relocation implementing agency 7) assistance to vulnerable groups 8) function of resettlement implementing agency 9) existing problems and suggestions

40 8. Resettlement Budget

8.1. Overall Budget of the Project Based on the estimate of costs to be incurred on land acquisition and resettlement (LAR), the total cost of land acquisition and resettlement is estimated to be CNY1.52million. Due to the possible omissions of APs, 15% contingencies are included into the total cost. The detailed cost estimates are presented in Table 9.1. Table 8-1 Land Acquisition and Resettlement Budget for Weihui WSP

Compensation Type Unit Qty Rate (CNY/unit) Cost(CNY105) A.LAR 119.23 Permanent Land Acquisition (paddy Field) mu 10.91 24600 26.84 Permanent land Acquisition (wheat spanking ground) mu 9.33 20000 18.66 Compensation for temporary land use mu 484.36 700 33.91 Big tree tree 134 100 1.34 grove grove 5 150 0.08 Arable land cultivation cost mu 20.24 6412.8 12.98 Increased construction land use cost in charge mu 20.24 6667 13.49 Arable land occupancy land tax mu 20.24 3800 7.69 Administrative cost for land acquisition mu 20.24 2100 4.25 B. Infrastructure and facilities 3.50 Stone and beton channel m3 120 200 2.40 Rural road m2 200 55 1.10 Total of A and B 122.73 C. Other costs 11.05 Reconnaissance and design 2% 2.45 M&E 2% 2.45 Administrative cost 3% 3.68 Training cost 2% 2.45 D. Contingencies 18.41 Physical contingencies 10% 12.27 Price contingencies 5% 6.14 Total 152.19

41 8.2. Compensation Principles

1) Compensation for land, relocation subsidy and compensation for standing crops would be calculated according to the relevant regulations from Implementation Methods of Land Administration Law issued by Henan Provincial Government and other relevant regulations by Weihui. 2) The compensation standard for scattered trees will be in accordance with relevant regulations of Weihui 3) On the basis of restoring them to their former state before resettlement, the compensation for special facilities and infrastructure will depend on the implementation of restoration.

8.3. Flow of Fund

In accordance with the compensation policies and rates identified in the Action Plan for resettlement, the Implementing Agency will sign land compensation agreement with Land Resource Administration at the county level and, accordingly, advance the compensation fund via banks to Weihui Land Resource Administration step by step according to the implementation progress of resettlement. Land Resource Administration will sign agreement with affected village committee on compensation for land acquisition and house auxiliaries. The disbursement of compensation funds will be conducted in accordance with the details such as item, quantity, date and amount regulated by the land acquisition compensation agreement. Via banks, the compensation funds will be passed from implementing agency to Land Resource Administration, and in turn to village committees. The compensation for house auxiliaries will in turn passed from village committee to APs.

8.4. Fund Management and Audit

1) All the relevant costs to land acquisition and resettlement will be included into the construction budget of the project. Compensation for land acquisition & resettlement and other costs will be paid by the Implementing Agency via Land Resource Administration to relevant entities or person. 2) Compensation for land will be passed by Land Resource Administration to the villages via bank. In principle, the compensation should be spent by the villages on the restoration of production for the affected. 3) Compensation for land should be paid 3 months ahead of land acquisition. 4) In order to guarantee the implementation of land acquisition and resettlement, Project Management Office should set up financial and monitoring institution to make sure that the disbursement of all funds is conducted in a substantial and timely way. 5) Those institutions/agencies responsible for the land compensation fund are the designated financial arms of implementing agency of the project, Land Resource Administration, and the village/township and village committee. 6) Resettlement fund will be passed from the top level to the bottom level step by step. The institutions/agencies at all levels should abide by regulations for financial settlement and audit, carry out regular check-up, report the availability of funds and their use, and bring forth rectification and mitigation measures in order to make sure that funds could be appropriated and used in accordance with the plan. 7) Resettlement fund should not be withheld or misused for other purposes than resettlement itself by any agencies/institutions involved.

42 9. Implementation Arrangements and Schedule

9.1. Principles of Resettlement Implementation Schedule

The resettlement schedule for land acquisition, house demolishment and relocation for the project will be coordinated with the respective construction schedule. The following principles should be followed in the planning and implementation of the schedules: 1) Land acquisition should be completed before construction 2) Land adjustment and distribution should be completed during crop cycles 3) The resettlement of affected labour force should be completed before land acquisition. On the basis of the overall plan and schedule of the project, the resettlement implementation schedule for the project is identified as follows:

9.2. Resettlement and Relocation Schedule Events Timing 1. Identify the land to be acquired 2004.8 2. Investigate and prepare physical 2004.8--12 index of acquired land 3. Consult land acquisition 2004.9—2005.5 compensation standards 4. Conduct land acquisition formalities 2005.6-7 Land acquisition 5. Disburse land acquisition 2005.8-9 compensation 6. Readjust and redistribute reserve 2005.10 farmland to APs 7. Implement economic rehabilitation 2005.10 to measures and training 2006.12 1. Identify tomb to be relocated 2004.12 2. Make tomb relocation compensation 2005.3 Tomb Relocation standards 3. Completion of tomb relocation 2005.8-9 Monitoring and 1. Monitor implementation and resolve 2005.6 to supervision any grievances 2006.12

43

Appendix 1 Social and Economic Conditions of Affected Villages.

Questionnaire of rural area socioeconomic conditions for Henan Waste Water & Water Supply Project

Subproject name: Koutou Village, Andu Township, Weihui City Respondent:Liu Youyi Surveyor: Li Yanming Inquiry time: 15th, September, 2004 Questionnaire reference number: 03

1. Basic facts to the end of 2003 2. Conditions of land Types of land Number of Per unit Permanent Provisional (Mu) village in total area occupies occupied yield land under land under (Kg/mu) this project this project (Mu) (Mu) Basic facts of the Number of household in 238 Paddy fields village and smaller total groups Total population 1,031 Irrigated fields 36.08 Including:: woman 510 Dry land Farm population(person) 1,031 Mountains and forests l Urban population Garden (person) plot(flat land) Labour force Labour force in total 691 Garden (person) plot(upland) Incl: Industry work Fish pond force(person) Agricultural work Kitchen garden force(person) Tertiary industry work Others(Please force(person) state clearly) Cultivated land Area coverage of Others cultivated land(Mu)

45 Incl: collectively reserved 1. Fruit trees cultivated land(Mu) Peach, plum, <1m date, 1-2m pomegranate 2-3.5m trees etc. 3.5-5m Kg/Mu >5m

Gross income Gross 217 2. Grain crops income(10,000)RM B Paddy rice Mu Total farm Wheat Mu 36..08 receipt(10,000)RMB Total industry Maize Mu receipt(10,000)RMB Tertiary industry Others(please Mu receipt(10,000)RMB state clearly) Farmers’ net income Affected 980 3. Cash crops yuan/mu contractors(RMB/person) Incl: farm (%) Field vegetable Mu Industry(%0 Greenhouse Mu vegetable Tertiary industry(%0 Nursery Mu Affected population Affected contractors household 70 Flowers Mu gardens Person 281

Affected farmer who rent household 4. 10 and cultivate the land Others(grown trees) Person

If land is permanently acquired from this village, will the use of the land be readjusted within the village or smaller village group?

46

Questionnaire of Rural Area Socioeconomic Conditions for Henan Waste Water &Water Supply Project

Subproject name: Mahutong Village, Andu Township, Weihui City Respondent:Song Yizhong Surveyor: Li Yanming Inquiry time: 15th, September, 2004 Questionnaire reference number: 04

1. Basic facts to the end of 2003 2. Conditions of land Types of Number of Per unit Permanent Provisional land(Mu) village in total area occupies occupied yield(Kg/Mu) land under land under this project this project (Mu) (Mu) Basic facts of the Number of household in 287 Paddy fields village and smaller total groups Total population 1,159 Irrigated fields 78.19 Including:: woman 579 Dry land Farm population(person) 1,159 Mountains and forests l Urban population Garden (person) plot(flat land) Labour force Labour force in total 798 Garden (person) plot(upland) Incl: Industry work Fish pond force(person) Agricultural work Kitchen force(person) garden Tertiary industry work Others(Please force(person) state clearly) Cultivated land Area coverage of 1,665 Others cultivated land(Mu) Incl: collectively reserved 1. Fruit trees cultivated land(Mu) Peach, plum, ?1m date, 1-2m

47 pomegranate 2-3.5m trees etc. 3.5-5m Kg/Mu >5m

Gross income Gross 243 2. Grain crops income(10,000)RM B Paddy rice Mu Total farm Wheat Mu receipt(10,000)RMB Total industry Maize Mu 78.19 receipt(10,000)RMB Tertiary industry Others(please Mu receipt(10,000)RMB state clearly) Farmers’ net Affected 1,000 3. Cash crops yuan/mu income contractors(RMB/person) Incl: farm (%) Field Mu vegetable Industry(%0 Greenhouse Mu vegetable Tertiary industry(%0 Nursery Mu Affected population Affected contractors household 171 Flowers Mu gardens Person 700

Affected farmer who rent household 4. 10 and cultivate the land Others(grown trees) Person

If land is permanently acquired from this village, will the use of the land be readjusted within the village or smaller village group?

48 Questionnaire of Rural Area Socioeconomic Conditions for Henan Waste Water &Water Supply Project

Subproject name: Beiguan Village, Andu Township, Weihui City Respondent:Liu Shangshan Surveyor: Li Yanming Inquiry time: 15th, September, 2004 Questionnaire reference number: 05

1. Basic facts to the end of 2003 2. Conditions of land Types of Number of Per unit Permanent Provisional land(Mu) village in total area occupies occupied yield(Kg/Mu) land under land under this project this project (Mu) (Mu) Basic facts of the Number of household in 425 Paddy fields village and smaller total groups Total population 1,699 Irrigated fields 57.1 Including:: woman 843 Dry land Farm population(person) 1,699 Mountains and forests l Urban population Garden (person) plot(flat land) Labour force Labour force in total 1,0220 Garden (person) plot(upland) Incl: Industry work Fish pond force(person) Agricultural work Kitchen force(person) garden Tertiary industry work Others(Please force(person) state clearly) Cultivated land Area coverage of 3,390 Others cultivated land(Mu) Incl: collectively reserved 1. Fruit trees cultivated land(Mu) Peach, plum, ?1m date, 1-2m pomegranate 2-3.5m

49 trees etc. 3.5-5m Kg/Mu >5m

Gross income Gross 357 2. Grain crops income(10,000)RM B Paddy rice Mu Total farm Wheat Mu 57.1 receipt(10,000)RMB Total industry Maize Mu receipt(10,000)RMB Tertiary industry Others(please Mu receipt(10,000)RMB state clearly) Farmers’ net Affected 980 3. Cash crops yuan/mu income contractors(RMB/person) Incl: farm (%) Field Mu vegetable Industry(%0 Greenhouse Mu vegetable Tertiary industry(%0 Nursery Mu Affected population Affected contractors household 97 Flowers Mu gardens Person 390

Affected farmer who rent household 4. and cultivate the land Others(grown trees) Person

If land is permanently acquired from this village, will the use of the land be readjusted within the village or smaller village group?

50 Questionnaire of Rural Area Socioeconomic Conditions for Henan Waste Water &Water Supply Project

Subproject name: Nanguan Village, Andu Township, Weihui City Respondent: TangZhenan Surveyor: Li Yanming Inquiry time: 15th, September, 2004 Questionnaire reference number: 06

1. Basic facts to the end of 2003 2. Conditions of land Types of Number of Per unit Permanent Provisional land(Mu) village in total area occupies occupied yield(Kg/Mu) land under land under this project this project (Mu) (Mu) Basic facts of the Number of household in 343 Paddy fields village and smaller total groups Total population 1,530 Irrigated fields 42.1 Including:: woman 756 Dry land Farm population(person) 1,530 Mountains and forests l Urban population Garden (person) plot(flat land) Labour force Labour force in total 1,054 Garden (person) plot(upland) Incl: Industry work Fish pond force(person) Agricultural work Kitchen force(person) garden Tertiary industry work Others(Please force(person) state clearly) Cultivated land Area coverage of 3,090 Others cultivated land(Mu) Incl: collectively reserved 1. Fruit trees cultivated land(Mu) Peach, plum, ?1m date, 1-2m pomegranate 2-3.5m

51 trees etc. 3.5-5m Kg/Mu >5m

Gross income Gross 321 2. Grain crops income(10,000)RM B Paddy rice Mu Total farm Wheat Mu 42.1 receipt(10,000)RMB Total industry Maize Mu receipt(10,000)RMB Tertiary industry Others(please Mu receipt(10,000)RMB state clearly) Farmers’ net Affected 970 3. Cash crops RMB/mu income contractors(RMB/person) Incl: farm (%) Field Mu vegetable Industry(%0 Greenhouse Mu vegetable Tertiary industry(%0 Nursery Mu Affected population Affected contractors household 80 Flowers Mu gardens Person 322

Affected farmer who rent household 4. 10 and cultivate the land Others(grown trees) Person

If land is permanently acquired from this village, will the use of the land be readjusted within the village or smaller village group?

52 Questionnaire of Rural Area Socioeconomic Conditions for Henan Waste Water &Water Supply Project

Subproject name: Shiping Village, Andu Township, Weihui City Respondent: LiQingrui Surveyor: Li Yanming Inquiry time: 15th, September, 2004 Questionnaire reference number: 07

1. Basic facts to the end of 2003 2. Conditions of land Types of Number of Per unit Permanent Provisional land(Mu) village in total area occupies occupied yield(Kg/Mu) land under land under this project this project (Mu) (Mu) Basic facts of the Number of household in 213 Paddy fields village and smaller total groups Total population 889 Irrigated fields 35.03 Including:: woman 440 Dry land Farm population(person) 889 Mountains and forests l Urban population Garden (person) plot(flat land) Labour force Labour force in total 559 Garden (person) plot(upland) Incl: Industry work Fish pond force(person) Agricultural work Kitchen force(person) garden Tertiary industry work Others(Please force(person) state clearly) Cultivated land Area coverage of 2,235 Others cultivated land(Mu) Incl: collectively reserved 1. Fruit trees cultivated land(Mu) Peach, plum, ?1m dates, 1-2m pomegranate 2-3.5m

53 trees etc. 3.5-5m >5m Kg/Mu Gross income Gross 321 2. Grain crops income(10,000)RM B Paddy rice Mu Total farm Wheat Mu 35.03 receipt(10,000)RMB Total industry Maize Mu receipt(10,000)RMB Tertiary industry Others(please Mu receipt(10,000)RMB state clearly) Farmers’ net Affected 960 3. Cash crops RMB/mu income contractors(RMB/person) Incl: farm (%) Field Mu vegetable Industry(%0 Greenhouse Mu vegetable Tertiary industry(%0 Nursery Mu Affected population Affected contractors household 73 Flowers Mu gardens Person 299

Affected farmer who rent household 4. and cultivate the land Others(grown trees) Person

If land is permanently acquired from this village, will the use of the land be readjusted within the village or smaller village group?

54 Questionnaire of Rural Area Socioeconomic Conditions for Henan Waste Water &Water Supply Project

Subproject name: Houyang Village, Andu Township, Weihui City Respondent: LiPeixi Surveyor: Li Yanming Inquiry time: 15th, September, 2004 Questionnaire reference number: 08

1. Basic facts to the end of 2003 2. Conditions of land Types of Number of Per unit Permanent Provisional land(Mu) village in total area occupies occupied yield(Kg/Mu) land under land under this project this project (Mu) (Mu) Basic facts of the Number of household in 310 Paddy fields village and smaller total groups Total population 1,208 Irrigated fields 27.02 Including:: woman 600 Dry land Farm population(person) 1,208 Mountains and forests l Urban population Garden (person) plot(flat land) Labour force Labour force in total 869 Garden (person) plot(upland) Incl: Industry work Fish pond force(person) Agricultural work Kitchen force(person) garden Tertiary industry work Others(Please force(person) state clearly) Cultivated land Area coverage of 2,205 Others cultivated land(Mu) Incl: collectively reserved 1. Fruit trees cultivated land(Mu) Peach, plum, ?1m date, 1-2m pomegranate 2-3.5m

55 trees etc. 3.5-5m 20 >5m Kg/Mu Gross income Gross 254 2. Grain crops income(10,000)RM B Paddy rice Mu Total farm Wheat Mu 27.02 receipt(10,000)RMB Total industry Maize Mu receipt(10,000)RMB Tertiary industry Others(please Mu receipt(10,000)RMB state clearly) Farmers’ net Affected 1,000 3. Cash crops RMB/mu income contractors(RMB/person) Incl: farm (%) Field Mu vegetable Industry(%0 Greenhouse Mu vegetable Tertiary industry(%0 Nursery Mu Affected population Affected contractors household 54 Flowers Mu gardens Person 217

Affected farmer who rent household 4. and cultivate the land Others(grown trees) Person

If land is permanently acquired from this village, will the use of the land be readjusted within the village or smaller village group?

56 Questionnaire of Rural Area Socioeconomic Conditions for Henan Waste Water &Water Supply Project

Subproject name: Qianyang Village, Andu Township, Weihui City Respondent: LiQinggui Surveyor: Li Yanming Inquiry time: 15th, September, 2004 Questionnaire reference number: 09

1. Basic facts to the end of 2003 2. Conditions of land Types of Number of Per unit Permanent Provisional land(Mu) village in total area occupies occupied yield(Kg/Mu) land under land under this project this project (Mu) (Mu) Basic facts of the Number of household in 128 Paddy fields village and smaller total groups Total population 514 Irrigated fields 63.15 Including:: woman 252 Dry land Farm population(person) 514 Mountains and forests l Urban population Garden (person) plot(flat land) Labour force Labour force in total 375 Garden (person) plot(upland) Incl: Industry work Fish pond force(person) Agricultural work Kitchen force(person) garden Tertiary industry work Others(Please force(person) state clearly) Cultivated land Area coverage of 1,170 Others cultivated land(Mu) Incl: collectively reserved 1. Fruit trees cultivated land(Mu) Peach, plum, ?1m date, 1-2m pomegranate 2-3.5m

57 trees etc. 3.5-5m 10 >5m Kg/Mu Gross income Gross 108 2. Grain crops income(10,000)RM B Paddy rice Mu Total farm Wheat Mu 63.15 receipt(10,000)RMB Total industry Maize Mu receipt(10,000)RMB Tertiary industry Others(please Mu receipt(10,000)RMB state clearly) Farmers’ net Affected 960 3. Cash crops RMB/mu income contractors(RMB/person) Incl: farm (%) Field Mu vegetable Industry(%0 Greenhouse Mu vegetable Tertiary industry(%0 Nursery Mu Affected population Affected contractors household 121 Flowers Mu gardens Person 487

Affected farmer who rent household 4. and cultivate the land Others(grown trees) Person

If land is permanently acquired from this village, will the use of the land be readjusted within the village or smaller village group?

58 Questionnaire of Rural Area Socioeconomic Conditions for Henan Waste Water &Water Supply Project

Subproject name: Qianyang Village, Andu Township, Weihui City Respondent: LiQinggui Surveyor: Li Yanming Inquiry time: 15th, September, 2004 Questionnaire reference number: 10

1. Basic facts to the end of 2003 2. Conditions of land Types of Number of Per unit Permanent Provisional land(Mu) village in total area occupies occupied yield(Kg/Mu) land under land under this project this project (Mu) (Mu) Basic facts of the Number of household in 301 Paddy fields village and smaller total groups Total population 1216 Irrigated fields 42.1 Including:: woman 252 Dry land Farm population(person) 601 Mountains and forests l Urban population Garden (person) plot(flat land) Labour force Labour force in total 810 Garden (person) plot(upland) Incl: Industry work Fish pond force(person) Agricultural work Kitchen force(person) garden Tertiary industry work Others(Please force(person) state clearly) Cultivated land Area coverage of 2,490 Others cultivated land(Mu) Incl: collectively reserved 1. Fruit trees cultivated land(Mu) Peach, plum, ?1m date, 1-2m pomegranate 2-3.5m

59 trees etc. 3.5-5m 10 >5m Kg/Mu Gross income Gross 255 2. Grain crops income(10,000)RM B Paddy rice Mu Total farm Wheat Mu 42.1 receipt(10,000)RMB Total industry Maize Mu receipt(10,000)RMB Tertiary industry Others(please Mu receipt(10,000)RMB state clearly) Farmers’ net Affected 970 3. Cash crops RMB/mu income contractors(RMB/person) Incl: farm (%) Field Mu vegetable Industry(%0 Greenhouse Mu vegetable Tertiary industry(%0 Nursery Mu Affected population Affected contractors household 79 Flowers Mu gardens Person 330

Affected farmer who rent household 4. and cultivate the land Others(grown trees) Person

If land is permanently acquired from this village, will the use of the land be readjusted within the village or smaller village group?

60 Questionnaire of Rural Area Socioeconomic Conditions for Henan Waste Water &Water Supply Project

Subproject name: Xuetun Village, Chengjiao Township, Weihui City Respondent: Sha Yunqing Surveyor: Li Yanming Inquiry time: 15th, September, 2004 Questionnaire reference number: 11

1. Basic facts to the end of 2003 2. Conditions of land Types of Number of Per unit Permanent Provisional land(Mu) village in total area occupies occupied yield(Kg/Mu) land under land under this project this project (Mu) (Mu) Basic facts of the Number of household in 442 Paddy fields village and smaller total village groups Total population 1,761 Irrigated fields 75.19 Including:: women 870 Dry land Farm population(person) 1,450 Mountains and forests l Urban population 311 Garden (person) plot(flat land) Labour force Labour force in total 955 Garden (person) plot(upland) Incl: Industry work Fish pond force(person) Agricultural work Kitchen force(person) garden Tertiary industry work Others(Please force(person) state clearly) Cultivated land Area coverage of 2295 Others cultivated land(Mu) Incl: collectively reserved 1. Fruit trees cultivated land(Mu) Peach, plum, ?1m date, 1-2m pomegranate 2-3.5m

61 trees etc. 3.5-5m 10 >5m Kg/Mu Gross income Gross 303 2. Grain crops income(10,000)RM B Paddy rice Mu Total farm Wheat Mu 60.19 receipt(10,000)RMB Total industry Maize Mu receipt(10,000)RMB Tertiary industry Others(please Mu receipt(10,000)RMB state clearly) Farmers’ net Affected 2,340 3. Cash crops RMB/mu income contractors(RMB/person) Incl: farm (%) Field Mu 15 vegetable Industry(%0 Greenhouse Mu vegetable Tertiary industry(%0 Nursery Mu Affected population Affected contractors household 118 Flowers Mu gardens Person 514

Affected farmer who rent household 4. and cultivate the land Others(grown trees) Person

If land is permanently acquired from this village, will the use of the land be readjusted within the village or smaller village group?

62 Appendix 2 Resettlement Information Booklet for Weihui Water Supply Project

Weihui County, located, located to the east of Mountain Taihang, is in the north of Henan Province. The present number of urban dwellers is 128,600, in which 5,000 are migrant people. It is a city dominated by the building materials and light textile industries, with the simultaneous development of agricultural and sideline products processing, aquaculture and tourism industries. . 1. Background of the project 1.1 Background of the Water Supply Project The daily water supply capability of the completed first and second waterworks in Weihui County are only 3000 tons a day, furthermore, because of the water resource site has been polluted, the existing No .one and two waterworks have been scraped. The present actual water supply of the third waterworks in Weihui County is 12,000 tons a day, and still being far more away from the demand of water supply. The county water supply can not satisfy the demand on quality and quantity of county life and production. Most of the industrial and domestic water needs are meet by self-operated wells, and because the existing self-operated well water-drawing system has no scientific management it is evident that underground water resources are being seriously wasted, the underground water be mined excessively and disorderly, and makes underground water level in the county area and its surrounding areas drop 5 to 12 meters. Moreover, the total ionic concentration of the underground water in the county proper is high, hardness is big, and the indexes of iron and manganese are seriously excessive, the water is bitter and salty with muddy color. The eastern Mengjingnv River, Wei River and the Communism Canal which flow through the urban area, as well as the urban natural water bodies being seriously polluted, and the drainage facilities have not perfected, making industrial and domestic waste water filter into the underground, causing the underground water quality to worsen. The inadequate water supply facilities of the County has directly affected the development of the county economy, the inherent low quality of the underground water have directly threatened the health of the county residents who have drunk it for a long time. Because of this, Weihui County plans to invest for the setting up of a water supply project, to offer adequate and sanitary running water for the county development and for the life of the residents. The estimated investment of Weihui Water Supply Project, with a treatment capacity of 30,000 m3/d, will be CNY1.4258 million (including the preparation cost, land acquisition cost and technical assistance cost for environmental management). The plant will located at 16.5kms northwest of Weihui County, under the jurisdiction of Nanling village, Shibaotou township. A permanent land acquisition of 20.24mu collective land and a temporary land acquisition of 484.36mu will be needed for the project, of which 200m of length (200 m2) urban roads occupied and 300m (120m3) earth channel acquisition will be temporarily needed for the pipeline network.

2. Project Implementation Schedule Water Supply Project of Weihui County: October 2005 to December 2007. In order to achieve this implementation schedule land acquisition activity will take place during the summer of 2005. It is envisaged the formalities will be completed prior to the end of July and compensation paid in August.

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3. Organizations and the contact Implementation agency for land acquisition: Weihui Water Supply Company Address: No.230 of Huancheng West Road of Weihui County Contact: He Xiaoming Tel: 0391-8683525 139-4968-2299

4. POLICY FRAMEWORK FOR RESETTLEMENT 1) Policy basis: the compensation for land acquisition and resettlement will be conducted according to the Ordinance of Henan Province on Land Administration and Notice of Jiaozuo Municipal People’s Government on the Readjustment of Compensation Standards for Annual Output Value of Land Acquired for State Construction; the compensation rates are formulated on the basis of the replacement cost. 2) Auxiliaries, such as standing crops and trees, will be fully compensated to the owners according to relevant regulations; 3) Resettlement measures of affected people: all the permanent land acquisition for the project will take the collective land of Nanling Village. 5 households with 19 APs will be affected by permanent land acquisition and 908 households with 3720 persons will be affected by temporary land use. Based on the Land Administration Law of the People's Republic of China, Methods of Land Acquisition Announcement by Land Resources Administration, Henan Provincial Management Guidelines for Implementation of the Land Administration Law of PRC, Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration, Urban House Demolition Management Regulation of PRC; and Urban House Demolition Management Regulations of Henan Province. The compensation for urban roads including asphalt roads, concrete roads, pavements and others is CNY120/m2, CNY240/m2,CNY60/m2 and CNY20/m2 respectively. Compensation rates for grow-up trees and graves are CNY100/tree and CNY120/set. 5. Grievance Channels and Procedures The affected people are encouraged to raise grievance against any land acquisition and resettlement problems they are not satisfied with. The detailed procedures run as follows:

64 Provincial, Municipal, Henan Provincial Management County Court Office

Municipal Government/PMO

Provincial, Municipal, County Government/PMO Independent M&E Monitor County Appeal Office

Township Government

Village Committee

Affected People

65 Appendix 3 Terms of Reference for Independent External Monitor

A. Introduction 1． According to the requirements stipulated in the “Regulations on Construction Supervision” promulgated by the Construction Ministry of the People’s Republic of China (PRC) in 1995, all construction projects shall be properly supervised. It is also a requirement of the Asian Development Bank (ADB) that loan projects that result in resettlement be properly monitored and evaluated. In order for the implementation of the land acquisition and resettlement program of the Henan Wastewater Management and Water Supply Project (HWMWSP) to comply with the provisions of the Resettlement Plan (RP), monitoring of implementation, both “internal” and “external”, will be carried out during and after the implementation of the Project. 2． An independent monitoring agency (Monitor) will be engaged through competitive tenders for the external supervision, monitoring and evaluation. The Consultant will be a PRC consulting entity who has experience in ADB or World Bank projects dealing with resettlement issues. 3． Monitoring and evaluation will include, but not be limited to: Monitoring the progress and effectiveness of RP implementation; Evaluation of income restoration and post-resettlement conditions of the APs and affected communities.

B. Objectives and Requirements of Monitoring and Evaluation 4． The objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the APs’ situation and the resettlement process. Economic situation prior to and after displacement of land or housing; Timely disbursement of funds; Environmental conditions; Rehabilitation of the vulnerable groups; Condition of land temporarily acquired when it is returned to the original land users; Measures taken by the village committees to restore affected livelihoods; and, Living conditions and economic status of APs following resettlement in comparison to the non-affected household in the Project areas. 5． Monitoring and evaluation will include the establishment of socio-economic 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 IAs, local officials, village leaders, and survey of at least 20% of affected households. Focus group discussions can be conducted to address issues related to women, poor, other vulnerable groups and unemployed workers.

C. Monitoring Indicators 6． The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP: Disbursement of entitlements to APs and businesses: compensation, housing, cultivated farmland, and employment as specified in the RP. Development of economic productivity: re-allocation of cultivated land, land restoration, job opportunities provided to APs. Provision of alternative housing: the affected persons must move into their alternative housing before demolition; the affected persons must receive on time their moving and transportation allowances. Restoration of civic infrastructure: all necessary infrastructure should be restored at the resettlement sites at least up to a standard equal to the standard at the original location. Level of satisfaction of APs: level of satisfaction of APs with various aspects of the resettlement program; the process for grievance redress the timely resolution of problems.

66 Standard of living: Throughout the 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 socio-economic 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 for two years, or until most affected households have fully restored their living standards and income generation. Participation of affected persons: Involvement of APs in measurements of impacts, negotiation of compensation, decisions for collective investment of land compensation, and monitoring of progress. Support for vulnerable households: impacts on children, the elderly and other vulnerable groups and implementation of preferential policies, income restoration measures, and improvements in women’s status. Adequacy of resettlement funds: full and timely disbursement of resettlement budget, results of financial audits and increased in funding meet any shortfalls.

D. Special Considerations 7． Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include: The status and function of women: Closely monitor any change in women’s status, function and situations. At least 50 % of APs surveyed will be women. Care and attention to vulnerable groups: Closely monitor living conditions of elders, the handicapped, and other vulnerable groups after resettlement, to ensure that no hardship is experienced.

E. Contents and Distribution of Independent Monitoring Reports 8． A monitoring report will include, among other things: summary of findings and conclusion of investigations and evaluation; major problems identified (existing and potential); recommended mitigation or prevention measures which need to be taken; assessment of previous follow-up actions. 9． The Monitor will provide ADB and the HPMO with monitoring reports every six months during the implementation of the RPs. After the PMOs prepare their resettlement completion reports, the Monitor will conduct annual evaluations for two years, or until all issues have been successfully resolved. 10． All reports will be provided in English and Chinese. PMOs shall ensure that information on the progress and status on all aspects of land acquisition and resettlement activities will be provided to the external monitor for verification. The Monitor will forward copies of the reports directly to ADB. F. Duration and Frequency of Visits 11． The consulting services will be required during a period of 3 years (2005 to 2007). 12． During implementation of the RP, external monitoring by the Monitor will be undertaken every six (6) months for an input of one (1) month. Two annual evaluations will be conducted for each subproject; the timing of these investigations may be staggered depending upon the progress of each subproject. The total input of the Consultant will amount to 15 months for domestic consultancy (excluding survey assistants). Monitoring Schedule

Tasks Timing Report Due 1) Baseline Surveys May 2005 June 30, 2005 2) Monitoring of Implementation June 2005 July 31, 2005 3) Monitoring of Implementation Dec. 2005 Jan. 31, 2006 4) Monitoring of Implementation June 2006 July 31, 2006 5) Monitoring of Evaluation Dec. 2006 Jan. 31, 2007 6) Monitoring of Evaluation Dec. 2007 Jan. 31, 2008

67

Appendix 4 Project Location Map

N

County Boundary Urban Area River Reservoir

Proposed WTP South-North Water Transfer Project (SNWTP)

WTP Water Treatment Plant WS Water Supply Subproject Linzhou City

Zhengmian Reservoir

Shibaotou Reservoir

Tagang Reservoir

Huixian City Proposed Huixian City WTP C ang R iv e Weihui City r

P T C W ei R an SN W iv al ism er un m m Co Xun County

Xinxiang City i We River

er Riv nu ng jia ng Me t s Ea Yanjin County

0510 km Scale

68