Heilongjiang Green Urban and Economic Revitalization Project

Social Monitoring Report

July 2019

People's Republic of China: Heilongjiang Green Urban and Economic Revitalization Project

Prepared by the Heilongjiang Provincial Government for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 12 July 2019)

Currency unit – yuan (CNY) CNY1.00 = $0.1456 $1.00 = CNY6.8702

ABBREVIATIONS AAOV – average annual output value ADB – Asian Development Bank AH – affected household AP – affected person CNY – Chinese Yuan DMS – detailed measurement survey DRP – draft resettlement plan HD – house demolition HPG – Heilongjiang Provincial Government HMG – Hegang Municipal Government IA – implementation agency JMG – Jixi Municipal Government LA – land acquisition M&E – monitoring and evaluation PIU – project implementation unit PMO – project management office PRC – People’s Republic of China QMG – Qitiahe Municipal Government RIB – resettlement information booklet SGAP – social and gender action plan SMG – Shuangyashan Municipal Government URP – resettlement plan TOR – terms of reference URP – updated resettlement plan WTP – water treatment plant WWTP – wastewater treatment plant

WEIGHTS AND MEASURES ha – hectare km – kilometer km2 – square kilometer m – meter m2 – square meter m3 – cubic meter m3/d – cubic meter per day

NOTE In this report, "$" refers to United States dollars.

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

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

ADB FINANCED PROJECT

Loan 3613-PRC: Heilongjiang Green Urban and Economic Revitalization Project

Social Safeguards Monitoring Report

(No.1)

Prepared by for the Asian Development Bank July 2019

ABBREVIATIONS

AAOV - Average Annual Output Value

ADB - Asian Development Bank

AH - Affected Household

AP - Affected Person

CNY - Chinese Yuan

DMS - Detailed Measurement Survey

DRP - Draft resettlement plan

HD - House Demolition

HPG - Heilongjiang Provincial Government

HMG - Hegang Municipal Government

IA - Implementation Agency

JMG - Jixi Municipal Government

LA - Land Acquisition

M&E - Monitoring and Evaluation

PIU - Project Implementation Unit

PMO - Project Management Office PRC - People’s Republic of China

QMG - Qitiahe Municipal Government

RIB - Resettlement Information Booklet

SGAP - Social and Gender Action Plan

SMG - Shuangyashan Municipal Government

URP - Resettlement Plan

TOR - Terms of Reference

URP - Updated resettlement plan

WTP - Water Treatment Plant

WWTP - Wastewater Treatment Plant

WEIGHTS AND MEASURES ha hectare km kilometer km2 square kilometer m meter m2 square meter m3 cubic meter m3/d cubic meter per day $(USD) US dollar CNY Chinese Yuan

Contents 1 Project Description and Implementation Progress ...... 1 1.1 Basic project information ...... 1 1.2 Description of project components ...... 1 1.3 Description of project implementation progress ...... 8 1.4 Budget and investment progress ...... 8 1.5 Project implementing and management agencies ...... 8 1.6 Changes of project components from preparation stage ...... 8 2 Monitoring Arrangement and activities ...... 10 2.1 Introduction of monitor and monitoring staff ...... 10 2.2 Monitoring methodology and procedures ...... 10 2.2.1 Internal monitoring ...... 10 2.2.2 External monitoring ...... 11 2.3 Monitoring activities during this period ...... 12 3 Project Areas and Beneficiaries Analysis during project implementation ...... 13 3.1 Introduction of Project Areas ...... 13 3.2 Project Beneficiaries Analysis ...... 14 4 Social Safeguards Categories Analysis during project implementation ...... 15 4.1 Social Safeguards Categories in preparation stage (IR, IP)...... 15 4.2 Involuntary Resettlement Category during implementation stage ...... 16 4.3 Indigenous People Category during implementation stage ...... 16 5 Monitoring on RP Updating, Land Acquisition and resettlement (LAR) ...... 17 5.1 General Project Progress, RP updating and land acquisition ...... 17 5.1.1 General Project Progress ...... 17 5.1.2 RP Updating status ...... 17 5.2 Land acquisition and Relocation ...... 19 5.3 Residential House Demolition and Relocation ...... 19 5.4 Non-residential house demolition and relocation ...... 20 5.5 Reasons for impact changes ...... 21 5.6 Compensation Standards and Payment ...... 22 5.7 Assistance measures for Affected Vulnerable Population ...... 24 6 Information disclosure, public consultation/participation and Grievance Redress 25 6.1 Information disclosure during project implementation ...... 25 6.2 Grievance Redress Mechanism and records ...... 27 7 Conclusion, findings and recommendations ...... 29 7.1 Issues on social safeguards in this period ...... 29 7.2 Recommendations for next steps of project implementation ...... 29 Annex 1: Status update – LA and HD works carried out till June 2019 of Hengshan District Urban Regeneration, Community Facilities and Public Space Improvement ...... 30

1 Project Description and Implementation Progress

1.1 Basic project information The basic project information is listed as table 1-1.

Table 1-1 Basic Information of the Project 1 Country People’s Republic of China (PRC)

2 Loan No. Loan 3613-PRC

3 Project Heilongjiang Green Urban and Economic Revitalization Project

4 Borrower PRC

5 Executing Agency Heilongjiang Provincial Finance Department

Hegang Municipal Government, Jixi Municipal Government, Implementing 6 Qitaihe Municipal Government, Shuangyashan Municipal Agency Government

Total Estimated 1,021.00 million USD 7 Cost

8 ADB Loan 310 million USD

9 IR category A

10 IP category C

11 Approval date 05 Dec 2017

12 Signing Date March 2018

13 Effectivity Date 4 September 2018

14 closing date 28 Feb 2023

Source: ADB website. 1.2 Description of project components 1. The project will continue ADB's long-term partnership with HPG and take a strategic, holistic, and long-term approach to further develop and implement the Transformation Development Plan of Coal Cities in Heilongjiang (2014 -2020), establishing a non-coal economic base, i.e., green food, pharmaceutical, renewable energy, and high-tech industries. The indicative project impacts are revitalized economy of East Heilongjiang subregion with non-coal industries in the cities of Hegang, Jixi, Qitaihe, and Shuangyashan; improved East Heilongjiang smart city cluster cooperation; and improved living environment, safety, and public health in the cities of Hegang, Jixi, Qitaihe, and Shuangyashan. The indicative project outcome is improved enabling environment for non-coal economic and industrial transformation. The project is expected to have the following outputs: 2. Output 1: Capacity in business development services and integrated project planning and management developed. This output will support project management and capacity development to ensure successful diversification and project sustainability in areas of (i) 1

project planning, procurement, and financial management; (ii) business development services (BDS) for SMEs and local SME bureaus; (iii) human resources and skills development; (iv) smart city cluster cooperation; (v) mining remediation planning and implementation; (vi) flood risk management, climate resilience, and sponge city planning; 1 (vii) water, wastewater, and drainage system design, construction, and operation; and (viii) sustainable urban and public transport management and road safety.

3. Output 2: Sustainable small- and medium-sized enterprises investment and access to finance in project cities improved. The project will establish an SME financing platform, using the financial intermediation component (FIC), to mobilize domestic financing.2 The platform will offer (i) cofinancing loans for SME investments by financial intermediaries in which the ADB loan component is subordinated in return for longer-term project loans, (ii) a first-loss cash collateral facility to mobilize commercial guarantees and ease access to commercial financing for investments and longer-term working capital of up to 3 years,3 and (iii) entrusted loans for high- priority projects for local governments. The FIC will be linked to the BDS subcomponent (output 1).

4. Output 3: Key infrastructure and small- and medium-sized enterprises facilities in non- coal industrial parks in project cities constructed. The project will build and make operational key infrastructure and facilities, including (i) roads with advanced safety features and associated utility pipes; (ii) industrial wastewater treatment plants (WWTPs); and (iii) multifunction facilities for SMEs and start-ups, as well as for training and business services.

5. Output 4: Remediation and environmental cleanup from mining impacts in project cities improved. The project will develop mining remediation strategies, prepare investment plans, and implement pilot demonstration projects as models for replication. In Hegang, an open- pit mine will be remediated involving grading, clay lining, topsoil cover, vegetation, environmental management, and monitoring. The site will be reclaimed, made accessible and reused as a park and for light industry. In Jixi, a former mining area and waste-rock dumpsite, will be afforested, and a subsidence monitoring center will be built and operated.4 In Qitaihe and Shuangyashan, waste-rock dumpsites and subsidence areas will be remediated and reused as open spaces.

6. Output 5: Integrated urban infrastructure and services in project cities improved. This output will enhance urban livability and attractiveness through improved, spatially integrated infrastructure and services: (i) Hegang—river rehabilitation, drainage system, sustainable urban and public transport, urban greening, and district heating; (ii) Jixi—integrated improvements to the core area of Hengshan District and West Jixi, including river rehabilitation, urban roads, water supply, wastewater management, and drainage system; (iii) Qitaihe—water supply, wastewater system, and public transport system improvements; and (iv) Shuangyashan—sustainable urban

1 Sponge city is a concept of comprehensive urban water resources management, in which greenways, parks, and wetlands maximize ecosystem services, including stormwater management, using ecosystems-based adaptation. 2 Output 2 will be implemented through subprojects by SMEs, selected according to criteria described in PAM (Section B). The financial intermediation modality is most appropriate for aggregate projects facilitating diversification to non- coal industries through SMEs, for which financing requirements are not large enough to allow direct lending by ADB. 3 The cash collateral facility will cover (i) first loss of 20% for a guarantee company to assume risk for 80% of SME loan exposure and thus facilitate longer-term (3–5 years) debt financing by local financial intermediaries, and (ii) straight loans for higher-risk project loans in priority sectors. 4 Subsidence is lateral or vertical ground movement and failure caused by the underground coal mines.

transport by building key missing road links, water supply, sewerage, and drainage systems. More specifically:

(i) Hegang. Integrated infrastructure focuses on river rehabilitation, drainage, sustainable transport, urban greening, and district heating. Four rivers will be rehabilitated and flood protection standard will be increased to 1 in 50-year flood events for Shitou River, Heli River, and Xiaoheli River (total 16.6 kilometers [km]), and to 1 in 20-year flood events for Qianjin Creek (3.3 km). District heating systems energy efficiency will be improved through retrofitting 7.2 km of primary and 65.2 km of secondary aging and leaking pipes. Sustainable transport improvements include road rehabilitation with introduction of bus lanes, improved bus stops, pedestrian sidewalks, intersections, street greening, and associated drainage pipes with a total of 34.3 km of existing inner city roads, and intelligent transport system equipment at 50 bus stops and signal control, traffic safety improvements, and road maintenance equipment.

(ii) Jixi. Improvements to urban livability, integrated infrastructure, urban environment, and public facilities will focus on the core area of Hengshan District and West Jixi. Two rivers, Huangni River and Anle Creek; with a total length of 8.7 km will be rehabilitated and flood standard improved to a 1 in 20-year flood events for Huangni River and 1 in 30-year flood events for Anle Creek, and Hongqi Lake (23.5 hectares [ha]) will be rehabilitated. The water supply system will be rehabilitated, including upgraded water intake (84,000 cubic meters per day [m3/d]), upgraded water treatment plant (WTP) (50,000 m3/d), new advanced treatment units (80,000 m3/d), and sludge treatment facility. Water supply pipes will be retrofitted to reduce leakage (total length 72.5 km). Sanitary sewer pipes with a total length of 23.3 km, and one pump station will be built. New drainage pipes of 12.5 km; drainage trench of 20.0 km, 3 pump stations, and 5 sedimentation tanks to collect, treat, and discharge rain water will be built. In Hengshan District, roads with a total length of 2.2 km will be constructed, along with pedestrian and vehicular safety improvements. A public park and plaza with 3.2 ha will be created with a public training center for technical education and training, mining remediation monitoring and training, public technical library, and associated amenities with 18,000 square meters (m2) area.

(iii) Qitaihe. Urban public service improvements will focus on water supply system and public transport. The water supply system will be improved including rehabilitation and upgrading of two WTPs with design capacities of 100,000 m3/d and 50,000 m3/d, and upgrade of water intake at Taoshan reservoir. The distribution system will be improved replacing 17.8 km old main pipes, installing 73.2 km of new main pipes, and building booster pump stations. The project will also support nonrevenue water reduction with two pilots in the early implementation stage. Later it is planned to upscale nonrevenue water reduction using lessons from pilots involving about 100 communities complementing a government-financed program. Public transport improvements will include acquisition of 209 electric buses, construction of three bus terminals with charging stations, complementing city programs implementing bus priority lanes and bus stop upgrades on key routes, and smart city public transport applications.

(iv) Shuangyashan. Urban livability and integrated urban infrastructure improvements include supporting utility system upgrading and expansion, and improving sustainable urban transport. Water supply main pipes (24.7 km), 2 new pump stations, and 3 water tanks will be built, improvements at the WTP, new laboratory, flow meters at key intersections, and a supervisory control and data acquisition (SCADA) system will be installed, complementing a city program to reduce nonrevenue water. Sewer and drainage networks will be improved with the construction of 85.1 km sewers and installation of 69.6 km of drainage pipes. Sustainable urban transport system improvement includes construction of key missing road links from the urban core area to the ring road and a missing section of the ring road with a total length of 6.7 km improving public transport routing, nonmotorized and vehicular circulation, and traffic safety.

7. Detailed information on outputs is in the following tables.

Table 1: Output 3: Key Infrastructure and Small- and Medium-Sized Enterprises Facilities in Non-Coal Industrial Parks in Project Cities Constructed Item Subcomponent Brief Description

Hegang

HG 3.1 Hegang industrial park (green Three roads in the park will be built (about 6.3 km), and food, green energy, and high- associated utility pipes and cables will be installed, including 6.3 tech)—infrastructure and km each of water supply pipes; drainage pipes; sewer pipes; and multifunctional SME support heating pipes. An SME service and training center and park facilities management building (8,000 m2) will be constructed.

HG 3.2 Hegang Luobei County industrial A WWTP with 6,000 m3/d capacity to treat wastewater from park (high-tech graphite-based graphite materials processing and production process will be materials and e-mobility)— constructed. After treatment, the wastewater will be reused for the WWTP and treated wastewater park. reuse pipe Jixi

JX 3.1 Hengshan District industrial park The old phase I ring road (about 3.0 km) will be rehabilitated and (high-tech graphite-based upgraded, and a new road, the middle ring road (1.3 km), will be materials and e-mobility)—road constructed, including utility pipes. infrastructure and SME support facilities JX 3.2 Jiguan District industrial park A new WWTP (20,000 m3/d) and associated wastewater (non-coal SMEs)—WWTP and collection pipes (8.84 km, DN300-800) will be constructed and sewer pipes commissioned.

Qitaihe

QH 3.1 Qitaihe industrial park (green Two roads with total length of 2.1 km, and associated utility pipes food and pharmaceutical bio- and cables will be constructed. An SME training and service fermentation)—road center and an SME business center with a total area of 12,000 m2 infrastructure and SME support will be built. facilities

Shuangyashan

Item Subcomponent Brief Description

SY 3.1 Shuangyashan business park Four roads with a total length of around 5.7 km inclusive of (non-coal SME and PRC-Russia associated utility pipes and cables will be constructed, and business and trading park)—road additional 4.4 km water supply pipes and 7.0 km sewer pipes will and utility infrastructure and SME be installed to connect to the existing systems. support facilities SME facilities with total floor area of 40,000 m2 will be constructed and commissioned ha = hectare, km = kilometer, m2 = square meter, m3/d = cubic meter per day, PRC = People’s Republic of China, SMEs = small- and medium-sized enterprises, WWTP = wastewater treatment plant.

Table 2: Output 4: Remediation and Environmental Cleanup from Mining Impacts in Project Cities Improved Item Subcomponent Brief Description

Hegang

HG 4.1 Remediation of open pit mine The subcomponent has a total area of 52.6 ha, an area of 23.6 ha and wasterock dumpsite will be filled in a controlled way considering geotechnical stability with waste rock together with clay layer by layer, and site will be graded. New roads of 3.9 km with sidewalks on both sides and landscaping will be built on the surface. Pedestrian paths of 2.6 km and green land with a total area of 13.7 ha will be built.

Jixi

JX 4.1 Hengshan District waste rock Work has two phases: dumpsite remediation (i) Phase I includes geological survey of project area of 89.7 ha; and (ii) Phase II includes site remediation approaches based on survey results, site grading of 20.5 ha, reforestation of 69.2 ha, drainage interceptor ditch of 2.0 km, drainage ditch of 1.0 km, retaining wall of 0.3 km, fence of 0.6 km, and landscaping works. (A mining impact monitoring station will be built as part of output 5)

Qitaihe

QH 4.1 Mining remediation and A waste rock dumpsite (10.4 ha) and a mining subsidence area environmental rehabilitation (11.3 ha) will be remediated. A total of 187,313 m3 of waste rock from 10.4 ha will be removed and the waste rock will be used to fill the subsidence area and planting of trees in both sites.

Shuangyashan

SY 4.1 Wasterock dumpsite The wasterock dumpsite in Xiaoxishan is a depleted coal mine, remediation: Xiaoxishan mine with an area of 24.7 ha. It comprises forest land of 6.1 ha and construction land of 18.6 ha. The project will increase afforestation and remediate the construction land, then the remediated land is planned for future use as farmland. Works include 206,788 m3 of wasterock removal, 192,314 m3 of filling and grading of area affected by subsidence, reforestation, and construction of a drainage ditch. ha = hectare, km = kilometer, m = meter, m3 = cubic meter.

Table 3: Output 5: Integrated Urban Infrastructure and Services in Project Cities Improved Item Subcomponent Brief Description

Hegang

HG 5.1 Integrated river rehabilitation and Flood protection of four rivers, three of which (16.6 km) according cleanup from mining and to 1 in 50-year flood standard and Qianjin Creek according to 1 in ecosystems-based adaption 20-year flood standard (3.3 km), will include dredging, and (Shitou River, Qianjin Creek, Heli embankment construction implementing green infrastructure River, and Xiaoheli River) approach with landscaping as a river greenway to increase flow capacity.

Green-belt up to 30 m wide on each side or one side of the rivers will be built. The total greening area is about 75.0 ha, mainly planted with local tree species.

HG 5.2 District heating system energy 7.2 km primary pipe network and 65.2 km secondary pipe network efficiency improvements will be retrofitted.

HG 5.3 Road rehabilitation, public Curb side bus priority lanes of 29.1 km on urban roads will be transport, and NMT provided. Service of public transport and NMT will include: improvements (i) 34.3 km roads rehabilitated, including roads resurfacing, over 50 pairs of bus bays, sidewalk improvements, and some intersections’ safety improvements; (ii) ITS with intelligent signal control system, passenger information system, and surveillance system; (iii) special vehicles and/or equipment for road maintenance will be purchased; and (iv) 14.3 km drainage pipes associated with the rehabilitation of 29 roads will be installed. Jixi

JX 5.1 Hengshan District integrated Flood risk protection of two rivers: Anle Creek (0.8 km) (1 in 30- rivers and lake rehabilitation and year flood protection standard), and Huangni River (7.9 km) (1 in ecosystems-based adaptation 20-year flood protection standard). Hongqi Lake (23.5 ha) will be (Hongqi Lake, Anle Creek, and rehabilitated. Huangni River)

JX 5.2 Hengshan District urban 3.2 ha of land including green park, multiuse public training and regeneration, community education facility with a mining remediation monitoring and facilities, and public space training center (gross floor area: 8,000 m2), technical library improvement (5,000 m2), and gym (5,000 m2) will be rehabilitated and opened for public use.

JX 5.3 Hengshan District roads Jiaotong Street will be rebuilt (0.4 km) and a road on the riverbank improvement will be built (1.5 km). Gongqu road and flyover will be constructed (around 0.3 km).

JX 5.4 Jixi urban infrastructure—water Water supply pipes of 72.5 km to reduce leakage will be supply pipes, wastewater refurbished; 23.3 km sewer pipes to separate sewage and rain collection, and drainage water will be installed; new drainage pipes of 12.5 km and drainage trench of 20.0 km; 5 sedimentation tanks will be built to collect, treat, and discharge rainwater; and associated 1 sewer pumping station and 3 drainage pumping stations will be constructed and equipped.

Item Subcomponent Brief Description

JX 5.5 Jixi City No. 3 water treatment Existing water intake (84,000 m3/d) and water treatment plant plant upgrading and expansion (50,000 m3/d) will be upgraded, and new advanced treatment units (80,000 m3/d) and sludge treatment facilities will be constructed and installed.

Qitaihe City

QH 5.1 Qitaihe WTPs upgrading and Two WTPs will be upgraded: Shengke WTP (Plant I) with design water supply distribution system capacity of 100,000 m3/d, and water and sewerage company's replacement and expansion WTP (Plant II) with design capacity of 50,000 m3/d.

Taoshan reservoir in Qitaihe City will remain the water source for the two plants. The project will help to develop a river basin pollution comprehensive control master plan under output 1. The water intake will also be upgraded by replacing equipment.

Water supply and distribution system will be replaced and expanded in this component, including replacing 17.8 km old main pipes and installing 73.2 km new main pipes, and 15 booster pump stations will also be built.

The project will pilot test an NRW reduction program in two pilot communities in the city under output 1. The experience gained in the pilot tests will then be used to scale up to approximately 100 communities for NRW reduction expected after midterm review mission.

QH 5.2 Sustainable and clean fuel public Under this subcomponent transport improvements (i) 209 electric buses will be procured to replace the old diesel buses; (ii) three bus terminals with charging stations will be built; (iii) current bus operation and control system will be upgraded using cell phone applications for passenger information system, and fare collection system; and (iv) peak hour bus lanes will be implemented on key routes, and bus stops will be improved as part of counterpart activities.

Shuangyashan City

SY 5.1 Urban infrastructure—water Water supply: 24.7 km of water main; 2 new pumping stations supply, wastewater collection, (35,000 m3/d, and 15,000 m3/d); 3 clean water tanks (3,600 m3, and drainage 3,000 m3 and 4,000 m3), 1 reservoir (3,000 m3) and other associated facilities, which include drainage pipe in the WTP, new laboratory, flow meters at key intersections, and the SCADA system.

Drainage pipe installation with total length of 52.3 km in Jianshan District.

Item Subcomponent Brief Description

Sewer pipe installation with total length of 25.5 km sewer pipe in Lingdong District and 59.6 km sewer pipe in Jianshan District will be installed.

SY 5.2 Key road connections Subcomponents include: constructed (i) South Ring Road on an existing narrower road with a length of about 3.8 km will be built; (ii) Yunfeng link including a tunnel and approach roads with a total length of about 1.4 km will be constructed; and (iii) Xinxing Avenue link with one ramp and related approach roads will be built, and bus lanes will be placed in the bridge section of six lanes with a length of about 1.5 km. ha = hectare, ITS = intelligent transport system, km = kilometer, m = meter, m3 = cubic meter, m3/d = cubic meter per day, NMT = nonmotorized transport, NRW = nonrevenue water, SCADA = supervisory control and data acquisition, SMEs = small- and medium-sized enterprises, WTP = water treatment plant.

1.3 Description of project implementation progress 8. The Project will be implemented in 5 years (2018–2023). 1.4 Budget and investment progress 9. The total investment of the Project is 1,021.00 million USD, with US$ 310.00 million from the Asian Development Bank (hereinafter called the "ADB").

1.5 Project implementing and management agencies 10. The Heilongjiang Provincial Government (HPG) is the executing agency and will supervise, coordinate, and manage the project. The Heilongjiang Finance Department will manage the imprest account and support financial management. The Hegang, Jixi, Qitaihe, and Shuangyashan municipal governments are the implementing agencies, and each has established (i) a project leading group headed by the mayor or vice mayor, (ii) a local project management office (PMO) under the municipal development and reform commission, and (iii) project implementation units (PIUs) in the participating local agencies to implement the subcomponents.

1.6 Changes of project components from preparation stage 11. Up to the end of Mar 2019, except Xinxing Street Railway Bridge, the other preliminary/detail designs of 4 cities(Hegang, Qitaihe, Shuangyashan, Jixi) is ongoing and have not been approved yet.

12. The final design of the Xinxing Street Railway Bridge began in July 2017, and was completed and approved in November 2017, affecting Fu’an Village, Beixiu Community, Mining Bureau Central Station and Power Supply Branch. There have been some changes as presented in the table below.

Table 1-2 changes of Preliminary and Final Designs for Xinxing Street Railway Bridge

Preliminary design (March 2017) Final design (November 2017) Total length: 1470m Total length: 1445m Width of Xinxing Street north of the railway: 35m Width of Xinxing Street north of the railway: 40m Width of the west parallel road north of the railway: Width of the west parallel road north of the railway: 24m 24m Overall width south of the railway: 43.5m Overall width south of the railway: 50m

2 Monitoring Arrangement and activities

2.1 Introduction of monitor and monitoring staff 13. To ensure the successful implementation of the RP of the project, to realize the comprehensive objectives, the implementation of environment and social safeguard provisions of the project components will be subject to periodic and an overall M&E according to ADB’s safeguard policies, including internal and external monitoring.

14. The internal resettlement monitoring agencies of the Heilongjiang Provincial PMO and other departments concerned (e.g., 4 municipal PMOs, land and resources bureau and housing and construction bureau of 4 cities), with the assistance by the safeguard specialist engaged both for start-up supporting and in the implementation phase. These agencies are led and coordinated by Heilongjiang Provincial PMO. The members of such agencies have knowledge on resettlement and social issues to perform their duties.

15. This internal monitoring covers the period from the June 2018 to Mar 2019.

16. The external resettlement monitor, to be hired by September 2019 shall also conduct follow- up monitoring of the APs’ production level and standard of living and submit a integrated M&E reports to the Heilongjiang Provincial PMO and ADB.

2.2 Monitoring methodology and procedures

2.2.1 Internal monitoring 17. The purpose of internal monitoring is to enable all resettlement agencies to function properly during project implementation, conduct internal supervision and inspection on the whole process of resettlement preparation and implementation, learn resettlement progress, and ensure that the land acquisition, house demolition and resettlement work can be completed on schedule according to the RP, URP and promote successful project construction.

18. The internal resettlement monitoring agencies of the Heilongjiang Provincial PMO, and other departments concerned (e.g., 4 municipal PMOs, land and resources bureau and housing and construction bureau of 4 cities ). These agencies have a leader who is responsible specifically for the resettlement work. Such leaders should have rich resettlement experience and authority, and be able to coordinate all departments involved in the resettlement work. The members of such agencies should have knowledge on resettlement and social issues so as to perform their duties.

19. The safeguard specialist has assisted Heilongjiang Provincial PMO to develop a detailed internal monitoring plan for land acquisition and resettlement, including:

(1) Relocation of APs, allocation of housing sites and house reconstruction, etc.; (2) Payment, use and availability of compensation fees for land acquisition, and implementation progress and quality of production and development options of APs; (3) Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during land acquisition, house demolition and resettlement; (4) Restoration of the household income of APs; (5) Restoration of vulnerable groups;

(6) Payment, use and availability of compensation fees for resettlement; (7) Level of public participation and consultation during land acquisition, house demolition and resettlement; (8) Resettlement training and its effectiveness; and (9) Working mechanism, training, working hours and efficiency of local resettlement offices (10) implementation status on SGAP.

20. The Heilongjiang Provincial PMO will submit an internal monitoring report to ADB through semi-annual progress reports. Such report should indicate the statistics of the past 6 months in tables, and reflect the progress of land acquisition, resettlement and use of compensation fees through comparison and other activities on SGAP.

2.2.2 External monitoring 21. The external monitor will conduct a baseline survey of the affected villages and village groups affected by land acquisition to obtain baseline data on the monitored displaced households’ production level and standard of living before the implementation of land acquisition and house demolition. The production level and standard of living survey will be conducted semiannually to track variations of the APs’ production level and standard of living. This survey will be conducted using such methods as panel survey (sample size: 20% of the households affected by significant land acquisition and 100% of AHHs by house demolition, 100% of the affected village groups, to be sampled randomly), random interview and field observation to acquire necessary information. A statistical analysis and an evaluation will be made on this basis.

22. During the implementation of the RP, and SGAP, the external monitor will conduct periodic follow-up monitoring semiannually of the following activities by means of field observation, panel survey and random interview:  Payment and amount of compensation fees;  Preparation and adequacy of the resettlement site;  House rebuilding;  Relocation of the affected persons;  Training;  Support for vulnerable groups;  Restoration and rebuilding of infrastructure and special facilities;  Production resettlement and restoration;  Compensation for lost properties;  Compensation for lost working hours;  Transition subsidy;  Timetables of the above activities (applicable at any time);  Resettlement organization;  Use of compensation fees for collective land and income of APs;  Income growth of labor through employment; and  If affected persons have benefited from the Subproject  Activities and progress on and GAP (3) Public consultation 23. The 4 municipal PMOs will carry out public consultation meetings during project implementation. The external monitor will review the proceedings of these consultation meetings and also carry out discussions with the communities on ground to confirm and evaluate the effectiveness of public participation. 11

(4) Grievance redress 24. The external monitor will visit the sample villages and teams periodically, and inquire Heilongjiang Provincial PMO and implementing agencies that accept grievances about how grievances have been handled. It will also meet complainants and propose corrective measures and advice for existing issues so as to make the resettlement process more effectively.

25. The external monitor will submit monitoring or evaluation reports, including the resettlement monitoring and monitoring for SGAP, to ADB and Heilongjiang Provincial PMO semiannually during project implementation, followed by two annual evaluation reports.

2.3 Monitoring activities during this period 26. The internal monitoring mechanism has been established since July 2018. A series of internal monitoring tables have been provided to Heilongjiang Provincial PMO, municipal PMOs and explained to them. In June 2019, with the assistance of the staff consultant engaged by Heilongjiang Provincial PMO, Heilongjiang Provincial PMO submitted the 1st internal social safeguards monitoring report.

27. The external monitor will be engaged by September 2019 and the external monitoring reports will be submitted to ADB in late 2019.

3 Project Areas and Beneficiaries Analysis during project implementation

3.1 Introduction of Project Areas 28. Heilongjiang Province: is located between north latitude 43°26′~53°33′ and east longitude 121°11′~135°05′, mostly being plains, with a land area of 473,000 km2, governing 12 prefecture-level cities and 128 counties (cities, districts). Heilongjiang is a heavy industry base of China, and is focused on machinery, petroleum, coal, timber and food processing. At the end of 2018, Heilongjiang had a population of 37.73 million, including 18.99 million males (50.3%) and 18.73 million females (49.7%). In 2018, Heilongjiang’s GDP was 1.636 trillion yuan, 43274 yuan per capita, in which the value of primary industries was 30.11 billion yuan, that of secondary industries 40.30 billion yuan and that of tertiary industries 93.29 billion yuan. In 2018, urban residents’ per capita disposable income was 29191 yuan, and rural residents’ per capita net income 13804 yuan.

29. Hegang City: is located in northeastern Heilongjiang Province, being an important energy city of China, with a land area of 14,784 km2, governing Luobei and Suibin Counties, and Xiangyang, Gongnong, Nanshan, Xingshan, Xing’an and Dongshan Districts. At the end of 20175, the city had a population of 1.009 million, including 0.505 million males and 0.504 females each. In 2017, the city’s GDP was 28.29 billion yuan, up 7.3% year on year, in which the of primary industries was 9.38 billion yuan, up 5.2%, that of secondary industries 8.76 billion yuan, up 9.5%, and that of tertiary industries 10.23 billion yuan, up 7.5%. In 2017, urban residents’ per capita disposable income was 21370 yuan, and rural residents’ per capita net income 13967 yuan.

30. Qitaihe City. is a prefecture-level city in eastern Heilongjiang province. Covering an area 6,223 km2, it is geographically the smallest prefecture-level division of the province. Qitaihe also has the second smallest population of the cities in Heilongjiang. At the 2010 census, its total population was 920,419, while 620,935 live in the built up area made of 3 urban districts. At the end of 20176, the city had a population of 786,000, including 398,000 males and 388,000 females. In 2017, the city’s GDP was 23.145 billion yuan, 29,100 yuan per capita, in which the added value of primary industries was 3.52 billion yuan, that of secondary industries 8.549 billion yuan, and that of tertiary industries 11.34 billion yuan. In 2017, urban residents’ per capita disposable income was 23528 yuan, and rural residents’ per capita net income 12169 yuan.

31. Shuangyashan City is located in northeastern Heilongjiang, opposite to Russia across the Ussuri River, and next to Jiamusi, Qitaihe and Jixi Cities. Shuangyashan City is an important coal base of China and ranks first in Heilongjiang Province in terms of coal reserve, governing 4 districts and 4 counties, with a land area of 22,483 km2. At the end of 2018, the city had a population of 1.4085 million, including a nonagricultural population of 910,000. In 2018, the city’s GDP was 50.70 billion yuan, up 5.2% year on year, in which the added value of primary industries was 19.44 billion yuan, up 6.0%; that of secondary industries 10.41 billion yuan, down 4.4%; and that of tertiary industries 20.85 billion yuan,

5 Up to the end of June 2019, the Statistical Communique of 2018 National Economic and Social Development of Hegang City has not issued. 6 Up to the end of June 2019, the Statistical Communique of 2018 National Economic and Social Development of Qitaihe City has not issued. 13

up 5.0%. In 2018, per capita GDP was 35527 yuan, up 5.8%; urban residents’ per capita disposable income 25272 yuan, up 4.3%; and rural residents’ per capita net income 15102 yuan, up 8.8%.

32. Jixi City: is one of the main industrial cities and the largest coal city in northeastern China, located in southeastern Heilongjiang, bordered by Muleng and Qitaihe Cities, and Baoqing and Linkou Counties, with a registered population of 1.727 million at the end of 2018, including a nonagricultural population of 1.14 million. In 2018, the city’s GDP was 53.52 billion yuan, up 5.0% year on year, in which the added value of primary industries was 18.9 billion yuan, up 6.5%; that of secondary industries 12.89 billion yuan, up 5.6%; and that of tertiary industries 21.7 billion yuan, up 3.1%; per capita GDP was 28,222 yuan, up 5.7%; urban residents’ per capita disposable income 23889 yuan, up 5.7%; and rural residents’ per capita net income 18258 yuan, up 8.6%.

3.2 Project Beneficiaries Analysis 33. The project will contribute to poverty reduction by supporting SME development and job creation, and by improving infrastructure and services, public health, sanitation, and living conditions. The project will create 1,853 skilled and 5,430 unskilled jobs during construction, and 398 skilled and 138 unskilled jobs during operation. The PMOs will prioritize vulnerable groups, such as women and the poor, for employment and training. A social and gender action plan was prepared to ensure that positive benefits of the project accrue to beneficiaries.

34. The project is categorized effective gender mainstreaming. Women are affected by unemployment and poor urban services, and consider improvements in road safety and public transport as important benefits to their well-being and quality of life. The social and gender action plan will improve women’s employment opportunities, and provide consultation and participation opportunities. It will raise awareness on environmental protection, road safety, and flood risk management through public education.

4 Social Safeguards Categories Analysis during project implementation

4.1 Social Safeguards Categories in preparation stage (IR, IP) 35. The Project is categorized as A for involuntary resettlement in the preparation stage following the criteria laid out in the Safeguard Policy Statement 2009. Based on the impact survey among construction sub-components.

36. Hegang city: The subproject will affect state-owned land (1,905.30 mu) and (ii) collective farm land (152.10 mu). About 47 households (210 persons) will be affected by permanent land acquisition. There are no house demolition impacts. Temporary impacts will also occur during the installation of water supply/heating pipelines. It is estimated that 11 households (43 persons) will experience temporary impacts. Impacts on households are found to be marginal due to land loss and income loss per capita and also taking into consideration that the affected households have other sources of income or can be reallocated with replacement land. For the affected farm workers who get wage income from the Wudaogang farm, they will be re-allocated with new land prior to land acquisition. A socio-economic survey of sample population was conducted. All are found to be engaged in farming, crops are mostly soybeans and corn. Two households were identified as vulnerable groups (MLS).

37. Qitaihe: The subproject will require the acquisition of 18 mu of collective non-farm land (unutilized) in two villages with two households (4 persons). For the state-owned land, 777.90 mu of farm-land will be acquired. It has 30 farm workers. State-owned construction land owned by the transport bureau will also be affected (60 mu) but will not affect any households. Temporary impacts will only occur during the laying of pipes along the road (1,092 mu) under the Water Treatment Plant Upgrading and Water Supply Distribution System Replacement and Expansion Component. There are no APs temporarily affected. Impacts on households are found to be marginal because the land is unutilized or considered as wasteland and does not produce income and also taking into consideration that the affected households have other sources of income. For the affected farm workers from the Jinsha farm, they will be re-allocated with new land in Zone 9 prior to land acquisition. Socio-economic information of the two affected households and sample affected workers were obtained as part of the socio-economic survey. Majority of income of the 2 households are derived from non-agricultural activities. Crops produced on farmland are mostly soybeans and corn. There are no vulnerable households. There will be no house demolition required for the subproject.

38. Shuangyashan: The subproject will affect state-owned land (197.25 mu) and (ii) collective farm land (908.37 mu). About 156 households (486 persons) will be affected by permanent land acquisition. Impacts on farmers are found to be marginal due to land loss and income loss per capita and also taking into consideration that the affected households have other sources of income or can be reallocated with replacement land. However, house demolition impacts are found to be significant. There are about 275 AHs (598 persons). In addition, two structures owned by one government agency and private company and 30 stores will be demolished. Temporary impacts will also occur during the installation of water supply/heating pipelines. It is estimated that 12 households (42 persons) will experience temporary impacts. A socio-economic survey of sample population was conducted. With the exception of 10 store owners, all are found to be engaged in farming and non-agricultural activities. Seventeen households were identified as vulnerable groups. For the workers who get wage income from the railway bureau and power company affected by property demolition, there will be no impacts on them since they have either

properties in the area. It will ensure that the affected property will only be handed over to the Project once the bureau and company have already relocated them to new offices.

39. Jixi: The subproject will affect 525 persons in total, including 242 females. A total of 163.96 mu of rural collective land will be acquired permanently, all non-irrigated land, affecting 113 households with 371 persons (including 175 females) in 8 villages, 3 townships (sub-districts) in Jiguan and Hengshan Districts, Jixi City. In addition, 219.6 mu of State-owned land will be acquired permanently, including 175.72 mu of woodland, accounting for 80.01%; and 43.88 mu of construction land, accounting for 19.99%. Moreover, the subproject will result in house demolition (HD) of rural residential houses covering an aggregate area of 2,101.5 m2 and affecting 21 households with 102 persons, including 43 females. The subproject will likewise require the temporary occupation of 417.46 mu of land, including 49.79 mu of rural collective land, accounting for 11.93%; and 367.67 mu of State-owned construction land, accounting for 88.07%, affecting 13 households with 52 persons, including 24 females. The Subproject will affect 26 vulnerable households with 40 persons, all being MLS households, including 7 disabled persons, 19 chronically ill persons and 33 old persons.

4.2 Involuntary Resettlement Category during implementation stage 40. There is no change up to now.

4.3 Indigenous People Category during implementation stage 41. The Project is categorized as c for Indigenous Peoples. There is no changes up to now.

5 Monitoring on RP Updating, Land Acquisition and resettlement (LAR)

5.1 General Project Progress, RP updating and land acquisition

5.1.1 General Project Progress

42. Up to the end of Mar 2019, the draft detail designs of 4 cities(Hegang, Qitaihe, Shuangyashan, Jixi) have finished, but not been approved yet.

43. After updating the Resettlement Plan for Xinxing Street Railway Bridge Component of the Shuangyashan Subproject, some contracts for works and goods were awarded for Xinxing street railway bridge and are being implemented, preliminary and detailed engineering design for other subcomponents in all four cities are ongoing; implementation of the FIL and BDS components have commenced.

44. The three individual consultants for the project implementation management support in start- up phase have been engaged and mobilized. The consulting for the external resettlement monitoring and evaluation has not started. The project management support consulting company has been selected and the support consulting service is almost to commenced.

5.1.2 RP Updating status

45. Up to Mar 2019, only RP for Xinxing Street Railway Bridge Component has been updated in Dec 2017.

46. According to the original plan, the preliminary design can be approved by Feb 2019, so the start-up resettlement specialist went to all 4 cities since Jan 2019 and spend 33 days to conducted the impact survey according to the latest project design at that. But until now, no preliminary design have been approved this cause the RPs for them can not updated at this time.

47. As for Xinxing Street Railway Bridge Component, a detailed measurement survey (DMS) was conducted from July to November 2017 after the final design was completed. The LA and HD impacts of the Component based on May 2017 as against the results of the DMS are as follows:

Table 5-1 updated LA and Resettlement Impacts of Xinxing Street Railway Bridge HD

LA Urban nonresidential Rural residential Urban residential County/ Township Village district Area Affected Area Affected Area Affected Area Affected Populatio n

(mm) HHs (m2) HHs Population (m2) HHs Population (m2) Population Fu’an – Central May 2017 RP 52.2 30 97 2172 20 65 Jianshan Station District Sub- Fu’an -DMS 113.3 461.8 district 2 23 61 7 8 19

LA Urban nonresidential Rural residential Urban residential County/ Township Village district Area Affected Area Affected Area Affected Area Affected Populatio n

(mm) HHs (m2) HHs Population (m2) HHs Population (m2) Population Beixiu Community May 18942 180 508 2017 RP Beixiu 33973. Community 41 88 224 DMS Nearby stores 10 shops May 2017 RP 250 (32 persons)

Nearby stores 10 shops DMS 344.03 (32 persons)

Central station 1 bureau May 2017 RP 3850 (100 workers)

Central station – 1 bureau DMS 6801.3 (100 workers)

Power supply 8040 1

HD LA Urban nonresidential Rural residential Urban residential County/ Township Village district Area Affected Area Affected Area Affected Area Affected Populatio n

(mm) HHs (m2) HHs Population (m2) HHs Population (m2) Population branch May company 2017 RP (560 workers)

1 company Power supply 7150.0 (560 branch – DMS 4 workers)

692 Subtotal - RP May 2017 52.2 30 97 2172 20 65 18942 180 508 12140

113.3 461.8 33973. 14295.3 Sub-total - DMS 2 23 61 7 8 19 41 88 224 7 692

- 15031. 2155.3 Difference 61.12 -7 -36 1710. -12 -46 -92 -284 0 13 41 7

5.2 Land acquisition and Relocation

48. Land acquisition for Xinxing Street Railway Bridge started in July 2017. By the end of Mar 2019, 55073 m2 (82.61 mu) of land for Xinxing Street Railway Bridge had been acquired, affecting 23 households with 60 persons.

49. The village committee have used land compensation to cover endowment insurance for LEFs. Based on an average farmland loss of 0.8 mu per household (1.6 mu per capita), the village committee beared 30% of insurance premiums, the government beared 20%, and the household beared 50%.

50. To date, 23 AHs have entered into LA compensation agreements, LA is underway, the LA compensation has been paid. Besides, related non-agricultural measures, including the trainings, have been made for the Aps.

51. More assistance measures will be reported in the external monitoring report.

5.3 Residential House Demolition and Relocation

52. Up to Mar 2019, only Xinxing Street Railway Bridge of Shuangyashan city and The Cultural and Sports Center of Hengshan District Urban Regeneration, Community Facilities and Public Space Improvement of Jixi City involves residential house demolition. As the RP of Jixi city has no been updated, a due diligence report is attached for the house demolition. For details, please see appendix 1.

53. House demolition for Xinxing Street Railway Bridge started in July 2017.By the end of Mar 2019, residential houses of 33472.14 m2 of 96 households with 243 persons in Fu’an Village and Beixiu Community have been demolished for the Xinxing Street Railway Bridge Component. Based on the appraised prices, 13.546393 million yuan in HD compensation has been paid to the AHs, accounting for 100% of the total.

54. Among the 96 households affected by HD, 17 choose property swap (10 choosing the resettlement community in Nanshi District and 7 choosing the Ma’anshan resettlement community). Completed houses are available in both resettlement communities, and may be occupied immediately after agreement signing. 10 AHs have moved into new houses., and 7 are decorating their new houses.

55. Each AH for HD choosing cash compensation have received a moving subsidy of 1,000 yuan, and each AH choosing property swap have received a moving subsidy of 2,000 yuan (within the total appraisal price).

Table 5-2: Resettlement of AHs with Houses Demolished AHs APs Progress To be demolished 96 243 (plan) 243 All AHs have entered into compensation agreements, in which 43 have a second Demolished 96 house. Cash Compensation has been fully paid. compensation 79 196 19

Completed houses are available in both resettlement communities, in which 6 have Property swap 17 47 moved into new houses, 7 are decorating their new houses, and 4 have another house and will consider moving into new houses the next year.

Figure 5-1 Compensation Agreements of Han Chuncai’s and Dang Moyu’s Families Affected by HD and Choosing Property Swap

Figure 5-2 Ms.Liu Shuzhen’s cash compensation and payment record

56. Among them, 8 AHs of rural residential houses demolition have their second house nearby. They get the compensation and moved to their second houses. Among the 88 AHs caused by urban house demolition, 79 AHs have signed compensation agreements and received the compensation fee and 17 Ahs choosing the replacement houses. Of the 79 AHs, 42 have second houses. The households whose children have their own family but not registered, they have the option to get a bigger apartment and pay the additional cost and continue to stay as one household. They also have the option to get 2 smaller apartments so they can live as separate households. Those who are not registered before can register as separate household anytime.

5.4 Non-residential house demolition and relocation

57. Up to Mar 2019, Xinxing Street Railway Bridge demolished 2251.41m2 non-residential house in May 2018. The non-residential house demolition affected 2 sub-enterprises under Shuangyashan Mining Group Co., Ltd., namely Power Supply Branch and the Mining Bureau Central Station. Both of them choose cash compensation at the appraisal price. According to the 20

negotiation, 3 appraisal agencies have been provide to the affected enterprises and the affected enterprises chosen Yuanshen Real Estate Appraisal Agency to evaluate the compensation cost. After the appraisal and negotiation, the final compensation manner adopted cash compensation(27,213,121.36 yuan for Power Supply Branch )+ replacement house ( 4744 m2 new building for Central Station in the west of original center station, north of railway route).

58. Up to Mar 2019, the cash part has been paid to the Power Supply Branch. And the replacement housing is under construction and is planned to hand over to the Central Station by the end of 2019.

59. Since the original houses are the warehouse and office house, no staff of the enterprises directly affected by the demolition.

5.5 Reasons for impact changes 60. Since both bridge length and width have varied, LA and HD impacts have varied accordingly, as shown in the table below. LA area has increased because: 1) The bridge has broadened; and 2) The remaining unaffected land (i.e. outside the required boundary land) will be too small and may no longer viable, therefore, the remaining unaffected land will be acquired at the request of the affected person.

61. HD area has increased because: 1) The bridge has broadened; 2) Many houses out of the boundary line will be unsuitable for occupation after bridge completion, and will be demolished along through consultation; and 3) Some attachments were not included in the range of HD in the last survey, and are not included. The number of affected households decreased because following DMS and verification, some households who were counted as a separate HH does not registered residence license, therefore they are still considered as one household (i.e. registered under their parent’s registered residence license).

62. A comparison of LA and HD impacts of Xinxing Street Railway Bridge between the real impacts, updated RP and the May RP 2017 version is as follows:

Table5-3 Comparison of LA and HD Impacts LA area (mu) HD area (m2) Enterprises May 2017 52.20 18942.00 2 November 2017 113.32 34435.28 2 Real impact (Mar 2019) 82.61 33472.14 2 Difference 30.41 14530.14 0 Completed 82.61 33472.14 2

63. A comparison of AHs is as follows: Table 5-4 Comparison of Households Affected by LA and HD May 2017 DMS - November 2017 Real impacts

AHs APs AHs APs AHs APs (females) (females) (females) Only affected by LA 10 34 (15) 15 42 (20) 15 42 (20) Only affected by HD 180 508 (248) 88 224 (108) 88 224 (108)

Affected by both LA 20 65 (31) 8 19 (9) 8 19 (9) and HD Total 210 607 (294) 111 285 (137) 111 285 (137)

5.6 Compensation Standards and Payment

64. Up to Mar 2019, all payment have been paid off to the Aps.

65. The composite land price for LA remains unchanged at 45,333 yuan/mu, and the compensation rate for ground attachments remains unchanged at 33,999 yuan/mu. However, grape seedlings are cultivated on 75.77 mu of land within the LA range, with a compensation rate of 95,999 yuan, much higher than the former young crop compensation rate of 15,333 yuan/mu. 30% of the composite land price for LA of 45,333 yuan/mu (13,599.9 yuan/mu) belong to the village committee, and the balance to the AH.

Table 5-5 LA and Young Crop Compensation Rates Compensation rate for Compensation rate Compensation rate for ground Time young crops (yuan/m2 or for land (yuan/mu) attachments (yuan/m2 or mu) mu) May 2017 45333 33999 15333 November 2017 45333 33999 95999 Real 45333 33999 95999 Difference 0 0 80666

66. The AHs are satisfied with the higher compensation rate.

Figure 5-3 Compensation Agreement of Chen Lin’s Family Affected by LA and Choosing Cash Compensation

67. There are two resettlement modes for HD, namely cash compensation and property swap.

68. Both modes are accepted by all AHs. Through appraisal, the benchmark appraised prices for masonry concrete, masonry timber and simple structures are 1,850 yuan/m2, 1,550 yuan/m2 and 1,050 yuan/m2 respectively. The appraised price of each house will be adjusted on this basis.

69. Each AH for HD choosing cash compensation have also received a moving subsidy of 1,000 yuan, and each AH choosing property swap have received a moving subsidy of 2,000 yuan. If an AH enters into an agreement within 10 days after the date of the LA announcement, a HH will receive a reward of 8,000 yuan/HH. If within 20 days, will receive a reward of 5,000 yuan. If within 30 days, will receive a reward of 3,000 yuan/HH. There is no reward beyond the expiration date.

70. The HD appraisal agency of the Component is Hongtai Appraisal Co., Ltd. with Class II appraisal qualification. The actual compensation rate of a house is fixed by the appraisal agency. The average appraised price is higher than that in the May 2017 RP and is same as that in URP.

Table 5-6 Compensation Rates for Residential Houses Masonry concrete Masonry timber structure Simple structure Time structure (yuan/m2) (yuan/m2) (yuan/m2) May 2017 1400 1200 800 November 2017 1850 1550 1050 23

Real Appraisal price, higher than that in URP Difference 450 250 250

71. The compensation rates for other fruit trees, timbers and attachments are the same as those in the former RP and URP.

Table 5-7 Compensation Rates for Ground Attachments and Infrastructure Compensation rate (yuan) May 2017 & Type Unit real Difference November 2017 Buildings, structures m2 100-200 100-200 0 Masonry gates m2 200-300 200-300 0 Enclosing walls, height >=1.5m m 60 60 0 Enclosing walls, height >=1.8m m 80 80 0 Enclosing walls, height >=2m m 100 100 0 Iron fences m2 50-70 50-70 0 Iron fences m2 75-95 75-95 0 Iron gates m2 80-100 80-100 0 Iron sheet gates m2 60 60 0 Masonry cellars / 400-500 400-500 0 Pumped wells / 500 500 0 Masonry seepage wells / 400 400 0 Fruit trees / 40-80 40-80 0

5.7 Assistance measures for Affected Vulnerable Population 72. The data for assistance measures for Affected Vulnerable Population is under collection and will reported in the next monitoring report.

6 Information disclosure, public consultation/participation and Grievance Redress

6.1 Information disclosure during project implementation 73. Since the beginning of the project, all Aps have participated in the DMS for Xinxing street bridge component. For details, please see table 7-1.

Table 7-1: Completed and Planned Public Participation Activities Purpose Mode Time Agencies Participants Topic LA Village Disclosure of LA area, Shuangyashan announcement bulletin compensation rates and PMO, SMLRB, board, Jul. 2017 All APs resettlement modes, etc. township and village village officials meeting Announcement Compensation fees and Village of Shuangyashan mode of payment bulletin compensation PMO, SMLRB, board, Jul. 2017 All APs and township and village resettlement village officials meeting programs

Determination Discussing the final income of income restoration program and the restoration plan program for use of Village Shuangyashan compensation fees（the meeting Jul. – Aug. PMO, SMLRB, All APs village collectives will pay (many 2017 township and 50% of the Endowment times) village officials Insurance cost for the APs eligible for LLF and the construction of public facilities） DMS results 1) Finding out anything verification Shuangyashan omitted to determine the final Field PMO, SMLRB, impacts; 2) preparing a list of Mar. 2018 All APs survey township and lost land and assets; 3) village officials preparing a basic compensation agreement Training Discussing training needs July. program 2019 – IA, labor and Dec. 2020 social security Village （ bureau, township All APs meeting Training has not and village started officials yet）

74. More information of the project have been disclosed to the public in this period. 25

Table 7-2 Completed Public Participation Activities Purpose Mode Time Agencies Participants Topic Optimizing the Shuangyashan PMO, Fixing the boundary project design Village agencies concerned, and minimizing Jul. – Aug. meeting district government, All APs resettlement impacts 2017 (many times) design agency, township through survey and and village officials, APs measurement Preliminary DMS Shuangyashan PMO, Identifying Village agencies concerned, resettlement impacts Jul. – Aug. meeting district government, All APs through survey and 2017 (many times) design agency, township measurement, and and village officials, APs disclosing policies LA Shuangyashan PMO, Disclosure of LA announcement Village bulletin SMLRB, township area, compensation board, village Aug. 2017 governments, district LA All APs rates and meeting and HD management resettlement modes, office, village officials etc. Announcement of Shuangyashan PMO, Compensation fees compensation Village bulletin SMLRB, township and mode of payment and resettlement board, village Aug. 2017 governments, district LA All APs programs meeting and HD management office, village officials Consulting and Shuangyashan PMO, Selecting appraisal discussion SMLRB, township firm, and consulting Village meeting on HD Jul. – Aug. governments, district LA on appraisal results meeting All APs appraisal 2017 and HD management (many times) office, Hongtai Appraisal Co., Ltd., village officials Determination of Shuangyashan PMO, Discussing the final income Village SMLRB, township income restoration Jul. – Aug. restoration plan meeting governments, district LA All APs program and the 2017 (many times) and HD management program for use of office, village officials compensation Supplementary Shuangyashan PMO, Conducting a survey and Village SMLRB, township supplementary DMS Jul. – Aug. consulting on meeting governments, district LA All APs and further consulting 2017 resettlement (many times) and HD management on resettlement modes office, village officials modes Disclosure of Shuangyashan PMO, Further disclosing resettlement Village Jul.2017 – SMLRB, township information to APs policies and meeting Aug. governments, district LA All APs compensation (many times) 2018 and HD management rates office, village officials

75. The information disclosure and comment collection work of the appraisal agency was conducted together with announcement. The Jianshan District Subsidence Area Management Office selected two agencies with Class II appraisal qualification from 3 agencies with Class III appraisal qualification and two with Class II appraisal qualification, and finally selected Hongtai

Appraisal Co., Ltd. as the appraisal agency through consultation with the AHs. Comments and suggestions collected were considered in practice.

76. Before LA and HD, the relevant policies and regulations, and compensation rates were disclosed to the APs. All APs participated in the DMS, and agreement negotiation to ensure fairness, reasonableness and transparency. Most participants think that the LA, HD and grievance redress procedures are clearly communicated in practice.

Figure 7-1 Information Disclosure and Consulting Meeting at the Beixiu Community Committee

Figure 7-2 HD Announcement (posted on village/community bulletin boards in July 2017)

6.2 Grievance Redress Mechanism and records 77. The appeal procedure and its stages have been explained to the APs thoroughly through public consultation. The APs may also file an appeal through ADB’s accountability mechanism, 27

which provides an independent forum for the APs. In addition, reports against ADB’s policies or procedures are also welcomed. The website is: www.adb.org/Accountability-Mechanism/.

78. Since July 2017, the appeal procedure has been posted on village/community bulletin boards, and distributed to villagers. The resettlement agencies have appointed staff members to accept and handle grievances and appeals, as detailed below. In addition, the APs may file appeals with the Jianshan District Subsidence Area Management Office, and will receive dispositions within 15 days. If any appeal is not handled, the AP may resort to the complaint handling agency of the government at the next higher level. By the end of Mar 2019, no grievance had occurred, and all issues had been solved through consultation.

Table 7-3 Staff and Contact Information Accepting Agencies of Grievances and Appeals Agency Contact Address Tel Shuangyashan PMO (municipal development and reform Zhao Yunling 15/F, Safety Building 13945798118 commission) Shuangyashan Shanty Area 2/F, 12# Building, Lengku Director Deng 13846902303 Reconstruction Office Community Shuangyashan Shanty Area 2/F, 12# Building, Lengku Director Jia 18846966888 Reconstruction Office Community Jianshan District Subsidence Area Director Wang 16# Plot, Nanshi District 13339345808 Management Office Jianshan District Subsidence Area Temporary office at the Director Gao 13946607122 Management Office central station Near Chang’an Road, Fu’an Village Head Tong 13555169122 Jianshan District Near Yuanlin Road, Beixiu Community Director Xing 18045865606 Jianshan District

7 Conclusion, findings and recommendations

7.1 General Progress of Project 79. Except Xinxing Street Bridge component, no other RP has been updated due to detail design has not been approved.

80. The land acquisition and house demolition works for Xinxing street bridge component has well finished.

7.2 Issues on social safeguards in this period 81. The LA and HD work of the Xinxing Street Bridge Component has been conducted in accordance with the Land Administration Law of the PRC and ADB’s requirements. According to the latest detailed design, the Component’s LA and HD have changed a little, and the updated compensation rates ensure that the AHs receive sufficient compensation. Some mitigation measures have been taken timely, and there has been no grievance.

82. Public consultation enables the AHs to fully understand the LA and HD compensation and related procedures. The AHs are largely satisfied with the LA procedure, house appraisal, compensation payment and government policies.

83. An effective organizational structure has been established, the agencies concerned have well defined responsibilities, and their staff is well trained, ensuring the successful implementation of LA and HD. During implementation, the grievance redress mechanism operates smoothly.

7.3 Recommendations for next steps of project implementation 84. Expedite hiring of external monitoring agencies to monitor RP implementation, and engage the external monitoring agencies latest by September 2019;

85. Pay attention to the income and livelihood restoration of people affected by land acquisition.

86. Speed up the preparation of detailed design for the subprojects, update the RPs and submit to ADB for approval prior to procurement of contractors for civil works.

87. Carry out due diligence assessments of all land acquisition and house demolition activities that have been carried out prior to the finalization of the detailed designs, to identify any past or current concerns related to land acquisition and house demolition.

Annex 1: Status update – LA and HD works carried out till June 2019 of Hengshan District Urban Regeneration, Community Facilities and Public Space Improvement A. Overview of the Component

This note aims to sum up the LA and HD work of the Component by the end of June 2019 of Hengshan District Urban Regeneration, Community Facilities and Public Space Improvement component. This note should be read along with the RP approved in May 2017, but does not contain any section that is not to be changed or updated therein.

B. Report preparation

This status update on LA & HD was prepared by the Heilongjiang provincial PMO and start-up consultant jointly. At the July 2019, the consultant collected the secondary data and prepare this report.

C. Original Impacts

The Cultural and Sports Center will require a total land area of 48 mu. It will consist of the following: 5-storey library (building area of 5,000 m2) the gymnasium (building area of 5,000 m2), and monitoring and training center (building area of 8,000 m2). Scope of LA and resettlement impacts. The construction will require the permanent acquisition of 48 mu of non-irrigated collective land in Hongqi Village, Hongqi Xiang, Hengshan District. It will affect 30 households (77 persons). Crops are corn and soybeans. In addition, 8 households (23 persons) are affected by house demolition with a combined floor area of 756 m2.

Table 1: LA and Resettlement Impacts of Hengshan District Urban Regeneration, Community Facilities and Public Space Improvement Affected collective land House Demolition (Rural) Area Affected Area Affected Subcompone District Xiang Village Non- nt Populatio Masonry Populatio irrigated HHs HHs n timber (m2) n land (mu) Cultural and Hengsha Hongqi Hongqi 48 30 77 756 8 23 Sports Center n Xiang Subtotal 48 30 77 756 8 23

D. Resettlement progress

Up to Mar 2019, it’s reported 1 household’s house has been demolished in April 2018. A total of 72 m2 residential house has been demolished and the AH chosen cash compensation. After appraisal, the total compensation cost is 157213 yuan. Up to now, the house has been demolished and the compensation has been paid off. The AH has a secondary house in Jixi. He does not plan to buy a new one. Some land acquisition activities have already conducted in the proposed Cultural and Sports Center site, but as the detail design of the component is still not approved, it can not identify if these activities are still within the scope of this project.

E. Conclusion

Some land acquisition and house demolition activities have already conducted in the proposed Cultural and Sports Center site, but as the detail design of the component is still not approved, it can not

identify if these activities are still within the scope of this project. It’s suggested the detailed design of this component should be speed up as soon as possible to update the original RP, to comply with ADB safeguard policy. For all land acquisition and house demolition activities carried out for the subproject, prior to ADB’s approval of the Updated RP for the subproject, it is required that a due diligence report be prepared (either as a standalone due diligence report or as a separate section of the Updated RP), consistent with ADB SPS requirements for existing facilities, to identify any past or present concerns related to land acquisition and involuntary resettlement. A set of corrective actions to address the gaps and concerns identified during the due diligence will be required to be prepared and agreed upon with the PMO. The details of the corrective actions, responsibilities, timelines and budget for implementing the suggested measures will be presented in the due diligence report.

Figure 1 the house demolition contract

Figure 2 house demolition notice